HomeMy WebLinkAboutMINUTES - 06041985 - 1.108 1-10's
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
TO: BOARD OF COMMISSIONERS DATE: May 14, 1985
FROM: ��;
Perfecto Villarreal, Executive Director
SUBJECT:
REDUCTION IN SECTION 8 ADMINISTRATIVE FEES
I. RECOMMENDED ACTION:
That the Board of Commissioners send letters to the United States Congressional
Representatives of this county and the United States Senators of this state
protesting the Section 8 Administrative Fee cut and the U. S. Department of Housing
and Urban Development 's arbitrary method of implementing the fee reductions without
any input from housing authorities on the impact of these cuts, as recommended by the
Advisory Housing Commission.
II. FINANCIAL IMPACT:
The following is a comparison of the old and new fees for the Section 8
Existing Housing Program:
Old New
Preliminary Fee $275 $250
Ongoing Fee (Percent of 2-Bedroom
Fair Market Rent) 8.5% 7.65%
Hard-to-House Fee -0- $ 45
For the new Housing Voucher Program, the fees earned buy a PHA are even less
than the reduced fees for the Section 8 Existing Housing Program. The Housing
Voucher fees are as follows:
Preliminary Fee $215
Ongoing Fee (Percent of 2-Bedroom
Fair Market Rent) 6.50%
Hard-to-House Fee $ 45
This 10 percent reduction in Section 8 Administrative fees could seriously
impede the Housing Authority's capacity to administer the Section 8 Existing Program.
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CONTINUED ON ATTACHMENT: X YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMEND ION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S)W .
ACTION OF BOARD ON 717777P 77 APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
UNANIMOUS (ABSENT y ) 1 HEREBY CERTIFY THAT THIS IS A TRUE
AYES: NOES: AND CORRECT COPY OF AN ACTION TAKEN
ABSENT: ABSTAIN: AND ENTERED ON THE MINUTES OF THE BOARD
OF SUPERVISORS ON THE DATE SHOWN.
Contra Costa County Housing Authority
CC: County Administrator ATTESTED �S
County Counsel Ahil Batchelor, Clerk of the Board of
Supervisors and County Adriinlistrat2r
M382/7-e3 BY DEPUTY
Board of Commissioners
Reduction in Section 8 Administrative Fees
May 14, 1985
Page -2-
III. REASONS FOR RECOMMENDATION/BACKGROUND:
Last spring, HUD announced plans to reduce the administrative fee to 6 percent
of the two-bedroom fair market rent. This proposal also called for the preliminary
fee to be reduced to $270. The National Association of Housing and Redevelopment
Officials (NAHRO) urged HUD to not reduce the administrative fees, arguing that the
proposed reduction would hurt the Public Housing Agency's (PHA 's) ability to
administer the Section 8 program. However, on March 13, 1985, the Department of
Housing and Urban Development (HUD) issued a revised Section 8 Existing Housing
Handbook change, HUD 7420.7, which implements a ten percent cut in administrative
fees earned by Housing Authorities for the Section 8 Existing, Housing Voucher and
Moderate Rehabilitation programs. The effective date will be the beginning of a
PHA's fiscal year that begins on or after July 1, 1985. The reason for the
reduction was given "as part of the government's efforts to reduce the Federal
deficit. "
In addition, HUD has recommended legislation to Congress which would freeze
Section 8 Fair Market Rents at 1985 fiscal year levels for the 1986 fiscal year. If
this freeze occurs, it will result in a further real reduction in earned
administrative fees of three to four percent in fiscal year 1986, beginning October
1, 1985. The total reduction in Section 8 administrati ve. fees will, therefore, be 13
to 14 percent.
At its Regular Meeting on Monday, May 13, 1985, the Advisory Housing Commission
voted to send letters to the United States Congressional Representatives of this
county and the United States Senators of this state protesting the fee cut and HUD's
arbitrary method of implementing the fee reductions and to urge the Board of
Commissioners to approve and send the attached draft letter to the appropriate
Representatives and Senators.
IV. CONSEQUENCES OF NEGATIVE ACTION:
Should the Board of Commissioners elect to not support the protest of the fee
cut and HUD's arbitrary method of implementing the fee reductions, the reduction in
administrative fees, coupled with the proposed freeze of Section 8 Fair Market Rents
at 1985 fiscal year levels for the 1986 fiscal year, could impede the Housing
Authority's ability to administer the Section 8 Existing program and would not be
able to maintain the level of service now provided.
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