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HomeMy WebLinkAboutMINUTES - 01202004 - HA1 HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA TO: BOARD OF COMMISSIONERS FROM: Robert WEwan, Executive Director DATE: January 20, 2004 SUBJECT: APPROVE THE TRANSFER OF HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA HOUSING AUTHORITY'S SECTION 8 HOUSING CHOICE VOUCHER PROGRAM ADMINISTRATIVE FEE RESERVE TO A STRATEGICAFFORDABLE HOUSING FUND DEDICATED FOR ELIGIBLE HOUSING DEVELOPMENT PURPOSES SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION 1. RECOMMENDED ACTION: APPROVE the transfer of Housing Authority's Section 8 Housing Choice Voucher Program administrative fee reserves of$3,201,337 to a Strategic Affordable Housing Fund in accordance with the Department of Housing and Urban Development (HUD) regulation 24 CFR Part 982.155. Il. FINANCIAL IMPACT: The Department of Housing and Urban Development's regulation 24 CFR Part 982.155 stipulates that the Housing Authority has the flexibility to utilize excess HCV Program administrative fees for other housing purposes permitted by State and local law, if funds in the Section 8 Administrative Fee Reserves are not needed to cover HCV administrative expenses. These funds are not needed for ongoing administrative expense. The accumulated reserve balance per the Housing Authority's audited financial statements for fiscal year ending March 31, 20013 is $3,201,337. Ill. REASONS FOR RECOMMENDATION/BACKGROUND In accordance with HUD regulation 24 CFR Part 982.155, this available Administrative Fee Reserve balance may be used for the following purposes: • The Development of new affordable housing; • Acquisitions of fixed assets for affordable housing programs; • Rental of properties as affordable housing; • Modernization and improvement of existing public housing developments; or; • Other expenses related to providing affordable housing in the communities of Contra Costa County. Contra Costa County continues to experience a housing crisis where large and growing numbers of low-income families pay in excess of 50% of their income for rent. One of the goals of the Housing Authority is to address this lack of affordable units by developing housing affordable to CONTINUED ON ATTACHMENT: X YES SIGNA'T`URE 6- :t42- RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURES): ACTION OF BOARD ON Jamk= 20, 2(704 APPROVED AS RECOMMENDED X OTHER VOTE OF COMMISSIONERS I HEREBY CERTIFY THAT THIS IS A X UNANIMOUS (ABSENT D. >=enes } TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTAIN: MINUTES OF THE BOARD OF COMMISSIONERS ON THE DATE SHOWN. ATTESTED Jsnxy 20, 2004 JOHN SWEETEN,CLERK OF THE BOARD OF COMMISSIONERS AND COUNTY ADMINISTRATOR k �'q•{ - � F H:\JudyHayes\MSOFFICE\WINWORD\BOARD\BO-Transfer Sec 8 Reserves.doc low-income families. Transferring these funds will assist in preserving these funds for housing development purposes and help the agency meet its mission and goals. V. CONSEQUENCES OF NEGATIVE ACTION: Should the Board of Commissioners elect not to approve the transfer of Housing Choice Voucher Administrative Fee Deserve for the purposes stated, the funds may became subject to recapture by HUD by future changes in the rules and regulations regarding the use of administrative fee reserves for the Section 8 Housing Choice Voucher Program. H:UudyHayes\MSOFFICE\WINWORD\BOARD\BO-Transfer Sec 8 Reserves.dae