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HomeMy WebLinkAboutSeptember 25, 2000PCITY OF COLUMBIA HEIGHTS 590 40TH AVENUE N.H., COLUMBIA HEIGHTS, MN 55421-3878 (612) 782-2800 TDD 782-2806 HOUSING & REDEVELOPMENT AUTHORITY HRA COMMISSIONERS John Hunter Marlaine Szurek Julfenne Wyckoff Gary L. Peterson Don G. Jolly Monday, September 25, 2000 The following is the agenda for the special meeting of the Columbia Heights Housing & Redevelopment Authority (HRA) to be held at 6:30 P.M., Monday, September 25, 2000, at City Hall, Conference Room 1, 590 40th Avenue N.E., Columbia Heights, Minnesota. The .HRA does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, its[ services, programs, or activities. Upon request, accommodation will be provided to allow individuals with disabilities to[ participate in all HRA services, programs, and activities. Auxiliary aids for handicapped persons are available upon request[ when the request is made at least 96 hours in advance. Please call the HRA Secretary at 706-3670 to make arrangementsI (TDD/706-3676 for deaf or hearing impaired only). . [ CALL TO ORDER/ROLL CALL. CONSENT AGENDA Approval of Minutes of Special Meeting of Monday, August 28, 2000 MOTION: Move to adopt the minutes of the Monday, August 28, 2000, special meeting as presented in writing. Adoption of Resolution 2000-03 regarding Section 8 administrative transfer. MOTION: Move to adopt Resolution 2000,03, transferring all administrative responsibili- ties for the operations of the Columbia Heights Section 8 Program and authorize all other related letters of intent be submitted to the appropriate agencies. Adoption of HRA/EDA and Metropolitan Council's Transfer Agreement. MOTION: Move to enter into the agreement governing the transfer of federal Section 8 Housing Assistance Program administration within the City of Columbia Heights and have the President and Executive Director execute same. ADJOURNMENT Cheryl Bakken, Acting Secretary H: \HRA~gend&2000\9-25-2000Spec:L&l l~.g. THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES EQUAL OPPORTUNITY EMPLOYER HOUSING & REDEVELOPMENT AUTHORITY (HRA) IN AND FOR COLUMBIA HEIGHTS SPECIAL MEETING MINUTES OF MONDAY, AUGUST 28, 2000 CALL TO ORDER The Regular Meeting of the Housing & Redevelopment Authority (H/LA) in and for Columbia Heights was called to order by Chairman, John Hunter at 6:46 p.m., Monday, August 28, 2000, in the City Hall Conference Room l, 590 40m Avenue N.E., Columbia Heights, Minnesota. ROLL CALL Commission Members Present: John Hunter, Marlaine Szurek, Don Jolly, Gary L. Peterson, Julienne Wyckoff, and John Hunter Staff Present: Walt Fehst, Executive Director " Ken Anderson, Deputy Executive Director/Assistant Secretary Randy Schumacher, Community Development Assistant APPROVAL OF MINUTES OF TgHr. SPECIAL Mlr~lr. TING OF MAY 16, 2000 MOTION by Marlaine Szurek, seconded by Don Jolly, to adopt the minutes of the May 16, 2000 regular meeting as presented in writing. All Ayes. MOTION CARRIED. ADOPT PRELIMINARY 2001 HOUSING & REDEVELOPMENT AUTHORITY BUDGET AND PROPOSED 2001 LEVY. Chairman Hunter introduced the discussion on the proposed 2001 Budget and Proposed 2001, levy for the Housing and Redevelopment Authority in and for the City of Columbia Heights. Mx. Anderson indicated the HRA Proposed Budget included expenses of $106,752 and revenue of $127,151. The difference between the revenues and the expenses is attributable to the Business Revolving Loan Fund and other housing loans principal and interest scheduled to be received in 2001. The Budget assumes that no additional loans will be issued in 2001. Mr. Anderson further explained that the recommended HRA levy was $94,752 which was the same levy amount spread on taxable property in Columbia Heights for taxes payable in 2000. The HRA levy maximum is calculated using a percentage established within the State Statute of.0144% of the taxable market value in the City of Columbia Heights. The maximum amount that could be levied using the pay 2000 values would be $95,328.28. Mr. Anderson indicated that levy amount would be used to pay off the outstanding construction loan made to the Sheffield Redevelopment Project. He indicated the HACA would be transferred to the Community Development Fund as it has been for the last several years. MOTION by Gary L. Peterson, seconded by Marlaine Szurek, to waive the reading of HRA Resolution 2000-02, there being ample copies available to the Public. All Ayes. MOTION CARRIED. MOTION by Gary L. Peterson, seconded by Marlaine Szurek, to adopt I-IRA Resolution 2000-02, being a Resolution of the Housing and Redevelopment Authority in and for Columbia Heights, adopting the Preliminary 2001 Budget and' Recommending Setting the HRA Local Levy at $94,752. All Ayes. MOTION CARRIED. OTHER BUSINESS. Chairman Hunter requested staffprovide the t-IRA Commissioners with the outstanding balance on the construction loan funds made by the City to the Sheffield Redevelopment Project. The HRA levy is currently pledged to the repayment of that reconstruction loan. Mr. Anderson indicated a loan balance amount would be forwarded to the Commissioners as requested. ADJOURNMENT. MOTION by Gary L. Peterson, seconded by Sulienne Wyckoff, to adjourn the meeting at 6:52 p.m. All ayes. MOTION CARRIED. Respectfully submitted, Kenneth R. Anderson, Assistant Secretary/Deputy Executive Director H:~I-IRA Minutes~Spe¢.Mtg. 8-28-00 COLUMBIA HEIGHTS HOUSING & REDEVELOPMENT AUTHORITY (HRA) Meeting of: September 25,2000 ./---. AGENDA SECTION: ORIGINATING EXECUTIVE DIR- NO: DEPARTMENT: HRA ECTOR APPROVAL ITEM: ADOPT RESOLUTION 2000-03 BY: Randy Schumacher BY: DATE: September 22, 2000 ISSUES STATEMENT: To consider the transfer of the Columbia Heights Section 8 Program to the Metropolitan HRA and to provide complete program administration within the City of Columbia Heights. BACKGROUND/ANALYSIS: The Columbia Heights HRA has requested that staff pursue the transfer of the administrative responsibilities of its Section 8 Program to the Metro HRA. Due to the fact that there exists no set procedure, the process has been somewhat complicated and detailed. However, to date, all Section 8 participant files are in order, re-certifications and physical inspections of all units have been completed. City staff has been working closely with both Metropolitan HRA staff and the local HUD office to fulfill all transition criteria in order to meet the projected October transfer date. Under state statute, a city may, by resolution, authorize another housing authority to act on its behalf with respect to any powers, as its agent, such as administration of its Section 8 Program. Formal action on such a resolution is required for this transition to take place. RECOMMENDATION: Staff recommends the Columbia Heights HRA adopt Resolution 2000-03, giving authorization to the Metropolitan Council to take full administrative responsibility for the operation of its Section 8 Program. RECOMMENDED MOTION: Move to adopt Resolution 2000-03, transferring all administrative responsibilities for the operations of the Columbia Heights Section 8 Program and authorize all other related letters of intent be submitted to the appropriate agencies. HRA ACTION: HRA RESOLUTION 2000-03 RESOLUTION REGARDING SECTION 8 EXISTING PROGRAM WHEREAS, the Metropolitan Council presently has, and is administering Section 8 rental assistance certificates and vouchers, to be utilized throughout Anoka, Carver, Dakota, Hennepin, Ramsey, and Washington counties, and WHEREAS, the Metropolitan Council desires to assist low income elderly and families to obtain adequate housing in the City of Columbia Heights at a price they can afford, and to accomplish this purpose, desires to undertake a program of subsidizing rent payments to landlords to provide adequate housing to such individuals and families, and WHEREAS, there are low income households and property owners in Columbia Heights' jurisdiction that may benefit, and WHEREAS, pursuant to statute, an authority may exercise all or any part or combination of the powers granted within its area of operation, and WItEREAS, for that purpose, an authority may, by resolution, prescribe and authorize any other housing authority, to act on its behalf with respect to any or all powers, and its agent or otherwise. NOW, THEREFORE BE IT RESOLVED that the Housing and Redevelopment Authority of Columbia Heights, Minnesota, hereby authorizes the Metropolitan Council to exercise its powers given under state statute and to administer its Section 8 Rental Assistance Program for Iow income families and elderly within the boundaries of Columbia Heights, Minnesota. This action will be directed by the mutually executed agreement governing the transfer of Federal Section 8 Housing Assistance Program administration within the City of Columbia Heights. PASSED THIS 2s~ DAY OF SEPTEMBER, 2000. Offered by: Seconded by: Roll Call: ATTEST: Walter R. Fehst, Executive Director John Hunter, Chair COLUMBIA HEIGHTS HOUSING AND REDEVELOPMENT AUTHORITY (HRA) Meeting of: September 25,2000 AGENDA SECTION: ORIGINATING EXECUTIVE DIR- NO: DEPARTMENT: HRA ECTOR APPROVAL ITEM: APPROVE AGREEMENT GOVERNING BY: Randy Schumacher BY: TRANSFER OF FEDERAL SECTION 8 DATE: September 22, 2000 HOUSING ASSISTANCE PROGRAM ADMINISTRATION BACKGROUND/ANALYSIS: The proposed agreement is a product of the Columbia Heights staff, Metropolitan HRA, and our Section 8 consultants. The agreement covers all aspects of the administrative transfer of the Columbia Heights Section 8 program over to the Metropolitan HRA. The effective date of transfer is November 1, 2000. However, the actual client files will be delivered to Metropolitan HRA on October 4, 2000. Please be clear on the purpose of this agreement. It affects only the administration of the Section 8 Program, and makes no reference or has no impact on the annual contributions contract from HUD. RECOMMENDATION: The Columbia Heights staff and its consultants are recommending that the HRA Board approve the above referenced agreement as presented. RECOMMENDED MOTION: Move to enter into the agreement governing the transfer of federal Section 8 Housing Assistance Program administration within the City of Columbia Heights and have the President and Executive Director execute same. HRA ACTION: AGREEMENT GOVERNING THE TRANSFER OF FEDERAL SECTION 8 HOUSING ASSISTANCE PROGRAM ADMINISTRATION WITHIN THE CITY OF COLUMBIA HEIGHTS THIS AGREEMENT is made and entered into by the Metropolitan Council ("Council"), the Columbia Heights Economic Development Authority ("Columbia Heights EDA") and the Columbia Heights Housing and Redevelopment Authority ("Columbia Heights I-IRA"). WHEREAS, the Council is authorized by Minnesota Statutes section 473.195 to function as a housing and redevelopment authority within the seven-county metropolitan area and exercises its statutory authority through its Housing and Redevelopment Authority unit ("Metro HRA"); and WHEREAS, the Council has federal contract authority to operate a federal Section 8 housing assistance program ("Section 8 program") and operates a Section 8 program within the seven-county metropolitan area surrounding Minneapolis and Saint Paul; and WHEREAS, the Columbia Heights HRA entered into one or more Consolidated Annual Contributions Contracts ("CACC") with the United States Department of Housing and Urban Development ("HUD") for the purposes of operating its own federal Section 8 program within the City of Columbia Heights; and WHEREAS, on December 22, 1997 the Columbia Heights EDA and the Council executed an Agreement Governing the Administration of the Federal Section 8 Housing Assistance Payments Program within the City of Columbia Heights which established a cooperative process by which the Council ceased operating its Section 8 program within the City of Columbia Heights; and WHEREAS, the Columbia Heights HRA wishes to terminate its Section 8 program and requested the Council to resume responsibility for operating and administering Section 8 program assistance for eligible families residing within the City of Co. lumbia Heights. NOW THEREFORE, in consideration of the mutual promises and covenants contained in this Agreement, the Columbia Heights EDA, the Columbia Heights HRA and the Council agree as follows: Program Transfer 1. Effective November 1, 2000 the Council will begin operating its Section 8 program within the City of Columbia Heights and will directly administer Section 8 program assistance to Sec. tion 8 participant families residing within the City of Columbia Heights. 2. The thirty-three (-3-3-) (35) Columbia Heights families identified in Exhibit A of this Agreement that currently are receiving Section 8 program assistance through the Columbia Heights HRA will be transferred to the Council's Section 8 program and will become participants in the Council's Section 8 program. Exhibit A is attached to and incorporated into this Agreement. 3. The sixty-three (6-3-) (61) families residing within the City of Columbia Heights that receive Section 8 program assistance through the Columbia Heights HRA on a portability basis from the Council will be absorbed back into the Council's Section 8 program. 4. Five (5) families residing within the City of Columbia Heights receive Section 8 program assistance on a portability basis from an initial public housing agency other than the Council. The Page 1 of 5 Council either will administer these five families' Section 8 program assistance on a portability basis or will absorb the families into its own Section 8 program. Waiting List 5. The Columbia Heights HRA will provide its Section 8 waiting list to the Council. The Council will send a letter to each family on the waiting list notifying each family about the Section 8 program transfer that is the subject of this Agreement and advising each family of its opportunity to apply for Section 8 assistance through the Council. Families who respond to the Council's letter within thirty (30) days and apply for placement on the Council's waiting list, will be placed on and incorporated into the Council's Section 8 waiting list according to the date and time the family originally applied to the Columbia Heights HRA for Section 8 assistance. Existing Section 8 Leases 6. Until :hme--30, July 31, 2000, the Columbia Heights HRA leased up Section 8 families who move to or reside in the City of Columbia Heights. To facilitate the parties' proposed transfer of Section 8 program responsibilities, the Coundil assumed responsibility for leasing up new families on and after ~ August 1, 2000. HAP Contracts and Assignment 7. Until October 31, 2000, the Columbia Heights HRA will make all Section 8 Housing Assistance Payments ("HAP") to owners leasing dwelling units to families receiving Section 8 program assistance through the Columbia Heights HRA. Effective for Section 8 HAP contract payments covering November 2000 rents and thereafter, the Council will make all monthly Section 8 HAP contract payments to owners leasing dwelling units to the one hundred one (101) families currently receiving Section 8 program .assistance through the Columbia Heights HRA. 8. The Council will enter into HAP contracts with owners and make HAP payments to owners who initially lease dwelling units to Section 8 families on and after J-at-y-t- August 1, 2000. 9. The Columbia Heights HRA and the Council acknowledge it is administratively impractical for the Council to immediately execute a new Section 8 HAP contract with each owner leasing a dwelling unit to a family living in Columbia Heights who currently receives Section 8 program assistance through the Columbia Heights HRA. Accordingly, in addition to executing new HAP contracts as provided in this Agreement, the Council will execute its own Section 8 HAP contract with each owner leasing a dwelling unit to a family identified in Exhibit A. The Council will execute its own Section 8 HAP contract at the first annual or interim recertification that occurs on or after November 1, 2000 for the families identified in Exhibit A. (a) The Columbia Heights HRA assigns and the Council agrees to assume as assignee all Section 8 HAP contracts identified in Exhibit A. This assignment is effective November 1, 2000. (b) Prior to November 1, 2000, the Council will give a written notice to each Section 8 owner and family affected by this Section 8 HAP contract assignment. The written notice will advise the owner and family that the Columbia Heights HRA has terminated its Section 8 program and that the Council has assumed responsibility for the Section 8 HAP contract between the owner and the Columbia Heights HRA. The form and substance of the written notice will be developed cooperatively by the Council and the Page 2 of 5 Columbia Heights HRA. The Council will notify HUD in writing of the Section 8 HAP contract assignments. (c) By November 1, 2001, the Council will execute its own Section 8 HAP contract with all owners affected by this Section 8 HAP contract assignment. The execution of a new Section 8 HAP contract with individual owners will occur no later than the time the Council performs the annual or interim reexamination of family income and composition. Certifications and Recertifications 10. The Columbia Heights HRA will perform and complete all annual and interim recertifications, including Housing Quality Standards ("HQS") inspections, that are required through October 31, 2000 for the 101 families currently assisted through the Columbia Heights HRA's Section 8 program. The Council will perform all annual and interim recertifications and HQS inspections that are required on and after November 1, 2000. Claims and Disputes 11. The Columbia Heights HRA willprocess all vacancy loss claims and pay all vacancy loss claim amounts to owners leasing dwelling units to families receiving Section 8 assistance through the Columbia Heights HRA if the claims were filed with the Columbia Heights HRA prior to November 1, 2000. If the Columbia Heights HRA pays a vacancy loss claim and the family was receiving Section 8 assistance on a portability basis from the Council or some other initial public housing agency, the Columbia Heights HRA may request reimbursement from the Council or other initial public housing agency pursuant to applicable federal portability billing regulations. 12. The Council will process all vacancy loss claims and pay all vacancy loss claim amounts to owners leasing dwelling units to families residing in Columbia Heights if the claims are filed on or after November 1, 2000. If the Council pays a vacancy loss claim and the family was not receiving Section 8 assistance on a portability basi~, the Columbia Heights HRA will reimburse the Council for the vacancy loss amount paid to the owner by the Council. If the Council pays a vacancy loss claim and the family was receiving Section 8 assistance on a portability basis from an initial public housing agency other than the Council, the Council may request reimbursement from the initial public housing agency pursuant to applicable federal portability billing regulations. 13. The Columbia HeightS HRA is responsible for all landlord-tenant issues or disputes involving the Columbia Heights HRA or the Columbia Heights HRA Section 8 program, to the extent the participation of the Columbia Heights HRA is reasonably necessary for the parties to resolve their issues or disputes. Program Termination Issues 14. The Council will work cooperatively with the Columbia Heights HRA to identify program issues or work items that need to be addressed as part of the implementation of this Agreement. By November 1, 2000, the Columbia Heights HRA will update and complete its participant files in a form acceptable to the Council which will permit the Council to assume the administration of the Columbia Heights HRA's Section 8 program. The Columbia Heights HRA is responsible for resolving with HUD,,:,,~,--- ~' ~,, ,,,~ ~"Ll~l,a~Ll,,,, ,,~ ,11~ ,.~,,ul,~., any issues regarding past and current program budgets, year-end financial statements, and operating and project reserves. Although the transfer of the Columbia Heights HRA federal ACC authority to the Council is not part of this Agreement, the Columbia Heights HRA acknowledges that the Council may in the future Page 3 of 5 explore with HUD the appropriateness of transferring the ACC authority and its associated funding to the Council, including any operating and project reserves that may have accumulated during the administration of the Columbia Heights HRA's Section 8 program. Upon request from the Council or HUD, the' Columbia Heights HRA will provide reasonable assistance and cooperation in resolving ACC and reserves issues. 15. The Columbia Heights HRA will provide the Council and HUD with access to records and files pertinent to its Section 8 program and will, upon request, provide originals or copies of participant files and other records and files necessary for the administration of Section 8 program assistance to families residing in the City of Columbia Heights. Prior Transfer Agreement 16. Any conflicting or contrary term or provision contained in the December 22, 1997 agreement between the Columbia Heights EDA and the Council governing the administration of the Section 8 program within the City of Columbia Heights is superseded by the applicable terms and conditions contained in this Agreement. IN WITNESS WHEREOF, the individuals signing this Agreement on behalf of the Columbia Heights Economic Development Authority, the Columbia Heights Housing and Redevelopment Authority and the Metropolitan Council represent that they are authorized to execute this Agreement on behalf of their respective organizations. This Agreement is effective on the date this Agreement is signed by the Council's authorized representative. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY METROPOLITAN COUNCIL By By Its Date Date Jay R. Lindgren Regional Administrator By Its Date COLUMBIA HEIGHTS HOUSING AND REDEVELOPMENT AUTHORITY By Its Date Page 4 of 5 HRA Commissioners John Hunter CITY OF COLUMBIA HEIGHTS ..r,.,ne Szurek Ju[fenne Wyckoff Gary L. Peterson 590 40TH AVENUE N.E., COLUMBIA HEIGHTS, MN 5542 !-3878 (612) 782-2800TDD 782-2806 Don G. JoLly PLEASE NOTE: CITY HALL PHONE NUMBERS HAVE CHANGED. NEW NUMBERS ARE: MAIN NUMBER (76])706-3600; TDD (76])706-3691 HOUSING & REDEVELOPMENT AUTHORITY September 22, 2000 Diane C. Cmiel, Director Office of Public Housing U. S. Department of Housing and Urban Development Minnesota State Office 220 Second Street South Minneapolis, MN 54401-2195 RE: Columbia Heights Section 8 Program Administration Transfer Dear Ms. Cmiel: This letter is being forwarded as a formal proposal to the U. S. Department of Housing and Urban Development regarding transfer of the Columbia Heights Section 8 Program Administration to the Metropolitan I-IRA. This proposal is being submitted at the direction of the Columbia Heights Housing and Redevelopment Authority upon consideration of these issues at their special meeting of September 25, 2000. The HRA is requesting to transfer the total administration of the Columbia Heights Section 8 Program to the Metropolitan HRA. Our program includes 25 certificates and 25 vouchers awarded initially to the Columbia Heights HRA per the annual contributions contract with the U.S. Department of Housing and Urban Development. Metro HRA has indicated support of this transfer in its letter of July 21, 2000, sent to Ms. Dianne Healy of your staff in which they are recommending an effective transfer date of September 1, 2000. In addition, your letter of August 29, 2000, to Mary Ahren of the Metropolitan HRA indicated that such an action would be mutually beneficial for both agencies. In your letter of August 29, 2000, to the City Manager of Columbia Heights, you identified two actions which needed to be completed prior to your approval of the administrative transfer. The first issue was for a resolution to be passed by the HRA Board of Commissioners which provides authorization for another housing authority to exercise its powers within the authorizing authority's area of operation. This resolution will be acted upon at a special HRA/EDA meeting on Monday, September 25, 2000. The second issue was the reimbursement for the 1998 year end settlement for the certificate program in the amount of $28,047. The full settlement was sent to the HUD office in Atlanta, Georgia, on August 30, 2000, which has been confirmed with Ms. Lucy Beckwell of the Financial Management Center. Therefore, we would appreciate a letter being submitted to the Metropolitan HRA authorizing formal approval of the administration transfer. Metropolitan Council's Liveable Communities Board will be taking action on this issue at their October 2, 2000, meeting. I thank you in advance for your cooperation and assistance in coordinating this transaction. Sincerely, Robert W. Ruettimann Walter R. Fehst President Executive Director THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES EQUAL OPPORTUNITY EMPLOYER CITY OF COLUMBIA HEIGHTS $90 40TH AVENUE N.E., COLUMBIA HEIGHTS~ MN 55421-3878 (612) 782-2800 TDD 782-2806 HRA Commissioners John Hunter MarLaJne Szurek JuLienne Wyckoff Gary L. Peterson Don G. JolLy PLEASE NOTE: CITY HALL PHONE NUMBERS HAVE CHANGED.NEW NUMBERS ARE: HAIN NUMBER (763)706-3600; TDD (763)706-3691 HOUSING & REDEVELOPMENT AUTHORITY September 22, 2000 Elizabeth Ryan Director of Housing and Livable Communities Metropolitan HRA Mears Park Centre 230 East 5th Street St. Paul, MN 55101-1626 RE: Columbia Heights Section 8 Program Administration Transfer Dear Ms. Ryan: This letter is being forwarded as a formal proposal to the Metropolitan HRA regarding transfer of the Columbia Heights Section 8 Program Administration to the Metropolitan HRA. This proposal is being submitted at the direction of the Columbia Heights Housing and Redevelopment Authority upon consideration of these issues at their special meeting of September 25, 2000. ' The HRA is requesting to transfer the total administration of the Columbia Heights Section 8 Program to the Metropolitan I-IRA. Our program includes 25 certificates and 25 vouchers awarded initially to the Columbia Heights HRA, per the annual contributions contract with the U.S. Department of Housing and Urban Development. The HRA Board has determined that it is in the best interests of the city and the Section 8 Program, to transfer the administration of the program to the Metropolitan HRA, to better meet the needs of the participants, and to promote effective and efficient use of resources. Over the past few weeks, we have greatly appreciated your staff's willingness to meet and discuss this proposed transition. Their technical assistance has been instrumental in the progression of the steps necessary to meet this goal. We look forward to your favorable consideration of this agreement. Sincerely, John Hunter ,,-.... Chair Walter R. Fehst Executive Director THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES EQUAL OPPORTUNITY EMPLOYER HRA Commissioners John Hunter CITY OF COLUMBIA HEIGHTS JuLienne Wyckoff Gary L. Peter$on 590 40TH AVENUE N.E., COLUMBIA HEIGHTS~ MN 5542 !-3878 (612) 782-2800 TDD 782-2806 Don G. Jolly ~/~"' PLEASE NOTE: CITY HALL PHONE NUHBERS HAVE CHANGED. HEN NUHBERS ARE: HAIN NUHBER (763)?06-3600; TDD (763)?06-~6;1 HOUSING & REDEVELOPMENT AUTHORITY September 22, 2000 Diane C. Cmiel, Director Office of Public Housing U. S. Department of Housing and Urban Development Minnesota State Office 220 Second Street South Minneapolis, MN 54401-2195 RE: Columbia Heights Section 8 Program Administration Transfer Dear Ms. Cmiel: This letter is being forwarded as a formal proposal to the U. S. Department of Housing and Urban Development regarding transfer of the Columbia Heights Section 8 Program Administration to the Metropolitan HRA. This proposal is being submitted at the direction of the Columbia Heights Housing and Redevelopment Authority upon consideration of these issues at their special meeting of September 25, 2000. The HRA is requesting to transfer the total administration of the Columbia Heights Section 8 Program to the Metropolitan HRA. Our program includes 25 certificates and 25 vouchers awarded initially to the Columbia Heights HRA per the annual contributions contract with the U.S. Department of Housing and Urban Development. Metro HRA has indicated support of this transfer in its letter of July 21, 2000, sent to Ms. Dianne Healy of your staff in which they are recommending an effective transfer date of September 1, 2000. In addition, your letter of August 29, 2000, to Mary Ahren of the Metropolitan HRA indicated that such an action would be mutually beneficial for both agencies. In your letter of August 29, 2000, to the City Manager of Columbia Heights, you identified two actions which needed to be completed prior to your approval of the administrative transfer. The first issue was for a esolution to be passed by the HRA Board of Commissioners which provides authorization for another ousing authority to exercise its powers within the authorizing authority's area of operation. This resolution will be acted upon at a special HRA/EDA meeting on Monday, September 25, 2000. The second issue was the reimbursement for the 1998 year end settlement for the certificate program in the amount of $28,047. The full settlement was sent to the HUD office in Atlanta, Georgia, on August 30, 2000, which has been confirmed with Ms. Lucy Beckwell of the Financial Management Center. Therefore, we would appreciate a letter being submitted to the Metropolitan HRA authorizing formal approval of the administration transfer. Metropolitan Council's Liveable Communities Board will be taking action on this issue at their October 2, 2000, meeting. I thank you in advance for your cooperation and assistance in coordinating this transaction. Sincerely, John Hunter Walter R. Fehst Chair Executive Director THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES EQUAL OPPOrtUNiTY EMPLOYER , Randy Schumacher - sStransfer, doc page i] AGREEMENT GOVERNING THE TRANSFER OF FEDERAL SECTION 8 HOUSING ASSISTANCE PROGRAM ADMINISTRATION WITHIN THE CITY OF COLUMBIA HEIGHTS THIS AGREEMENT is made and entered into by the Metropolitan Council ("Council"), the Columbia Heights Economic Development Authority ("Columbia Heights EDA") and the Columbia Heights Housing and Redevelopment Authority ("Columbia Heights I-IRA"). WHEREAS, the Council is authorized by Minndsota Statutes section 473.195 to function as a housing and redevelopment authority within the seven-county metropolitan area and exercises its statutory authority through its Housing and Redevelopment Authority unit ("Metro HRA"); and WHEREAS, the Council has federal contract authority to operate a federal Section 8 housing assistance program ("Section 8 program") and operates a Section 8 program within the seven- county metropolitan area surrounding Minneapolis and Saint Paul; and WHEREAS, the Columbia Heights HRA entered into one or more Consolidated Annual Contributions Contracts ("CACC") with the United States Department of Housing and Urban Development ("HUD") for the purposes of operating its own federal Section 8 program within the City of Columbia Heights; and WHEREAS, on December 22, 1997 the Columbia Heights EDA and the Council executed an Agreement Governing the Administration of the Federal Section 8 Housing Assistance Payments Program within the City of Columbia Heights which established a cooperative process by which the Council ceased operating its Section 8 program within the City of Columbia Heights; and WHEREAS, the Columbia Heights HRA wishes to terminate its Section 8 program and requested the Council to resume responsibility for operating and administering Section 8 program assistance for eligible families residing within the City of Columbia Heights. NOW THEREFORE, in consideration of the mutual promises and covenants contained in this Agreement, the Columbia Heights EDA, the Columbia Heights HRA and the Council agree as follows: Program Transfer 1. Effective November 1, 2000 the Council will begin operating its Section 8 program within the City of Columbia Heights and will directly administer Section 8 program assistance to Section 8 participant families residing within the City of Columbia Heights. 2. The thirty-five (35) Columbia Heights families identified in Exhibit A of this Agreement that currently are receiving Section 8 program assistance through the Columbia Page 1 of 5 Randy Schumacher - S8transferldoc Page,2 I Heights HRA will be transferred to the Council's Section 8 program and will become participants in the Council's Section 8 program. Exhibit A is attached to and incorporated into this Agreement. 3. The sixty-one (61) families residing within the CityofColumbia Heights that receive Section 8 program assistance through the Columbia Heights HRA on a portability basis from the Council will be absorbed back into the Council's Section 8 program. 4. Five (5) families residing within the City of Columbia Heights receive Section 8 program assistance on a portability basis from an initial public housing agency other than the Council. The Council either will administer these five families' Section 8 program assistance on a portability basis or will absorb the families into its own Section 8 program. Waiting List 5. The Columbia Heights HRA will provide its Section 8 waiting list to the Council. The Council will send a letter to each family on the waiting list notifying each family about the Section 8 program transfer that is the subject of this Agreement and advising each family of its opportunity to apply for Section 8 assistance through the Council. Families who respond to the Council's letter within thirty (30) days and apply for placement on the Council's waiting list, will be placed on and incorporated into the Council's Section 8 waiting list according to the date and time the family originally applied to the Columbia Heights HRA for Section 8 assistance. Existing Section 8 Leases 6. Until July 31, 2000, the Columbia Heights HRA leased up Section 8 families who move to or reside in the City of Columbia Heights. To facilitate the parties' proposed transfer of Section 8 program responsibilities, the Council assumed responsibility for leasing up new families on and after August 1, 2000. HAP Contracts and Assignment 7. Until October 31, 2000, the Columbia Heights HRA will make all Section 8 Housing Assistance Payments ("HAP") to owners leasing dwelling units to families receiving Section 8 program assistance through the Columbia Heights HRA. Effective for Section 8 HAP contract payments covering November 2000 rents and thereafter, the Council will make all monthly Section 8 HAP contract payments to owners leasing dwelling units to the one hundred one (101) families currently receiving Section 8 program assistance through the Columbia Heights HRA. 8. The Council will enter into HAP contracts with owners and make HAP payments to owners who initially lease dwelling units to Section 8 families on and after August 1, 2000. 9. The Columbia Heights I-IRA and the Council acknowledge it is administratively impractical for the Council to immediately execute a new Section 8 HAP contract with each owner leasing a dwelling unit to a family living in Columbia Heights who currently receives Page 2 of 5 Section 8 program assistance through the Columbia Heights HRA. Accordingly, in addition to i R.andy Schumacher - s8transfer, doc Page 3'1 executing new HAP contracts as provided in this Agreement, the Council will execute its own Section 8 HAP contract with each owner leasing a dwelling unit to a family identified in Exhibit A. The Council will execute its own Section 8 HAP contract at the first annual or interim recertification that occurs on or after November 1, 2000 for the families identified in Exhibit A. (a) The Columbia Heights HRA assigns and the Council agrees to assume as assignee all Section 8 HAP contracts identified in Exhibit A. This assignment is effective November 1, 2000. (b) Prior to November 1, 2000, the Council will give a written notice to each Section 8 owner and family affected by this Section 8 HAP contract assignment. The written notice will advise the owner and family that the Columbia Heights HRA has terminated its Section 8 program and that the Counc{1 has assumed responsibility for the Section 8 HAP contract between the owner and the Columbia Heights HRA. The form and substance of the written notice will be developed cooperatively by the Council and the Columbia Heights HRA. The Council will notify HUD in writing of the Section 8 HAP contract assignments. (c) By November 1, 2001, the Council will execute its own Section 8 HAP contract with all owners affected by this Section 8 HAP contract assignment. The execution of a new Section 8 HAP contract with individual owners will occur no later than the time the Council performs the annual or interim reexamination of family income and composition. Certifications and Recertifications 10. The Columbia Heights HRA will perform and complete all annual and interim recertifications, including Housing Quality Standards ("HQS") inspections, that are required through October 31, 2000 for the 101 families currently assisted through the Columbia Heights HRA's Section 8 program. The Council will perform all annual and interim recertifications and HQS inspections that are required on and after November 1, 2000. Claims and Disputes 11. The Columbia Heights HRA will process all vacancy loss claims and pay all vacancy loss claim amounts to owners leasing dwelling units to families receiving Section 8 assistance through the Columbia Heights HRA if the claims were filed with the Columbia Heights HRA prior to November 1, 2000. If the Columbia Heights HRA pays a vacancy loss claim and the family was receiving Section 8 assistance on a portability basis from the Council or some other initial public housing agency, the Columbia Heights HRA may request reimbursement from the Council or other initial public housing agency pursuant to applicable federal portability billing regulations. 12. The Council will process all vacancy loss claims and pay all vacancy loss claim amounts to owners leasing dwelling units to families residing in Columbia Heights if the claims are filed on or after November 1, 2000. If the Council pays a vacancy loss claim and the family Page 3 of 5 was not receiving Section 8 assistance on a portability basis, the Columbia Heights HRA will page~4, I Randy SChumacher ' s8transfer.doc reimburse the Council for the vacancy loss amount paid to the owner by the Council. If the Council pays a vacancy loss claim and the family was receiving Section 8 assistance on a portability basis from an initial public housing agency other than the Council, the Council may request reimbursement from the initial public housing agency pursuant to applicable federal portabiliW billing regulations. 13. The Columbia Heights HRA is responsible for all landlord-tenant issues or disputes involving the Columbia Heights HRA or the Columbia Heights HRA Section 8 program, to the extent the participation of the Columbia Heights HRA is reasonably necessary for the parties to resolve their issues or disputes. Program Termination Issues 14. The Council will work cooperatively with the Columbia Heights HRA to identify program issues or work items that need to be addressed as part of the implementation of this Agreement. By November 1, 2000, the Columbia Heights HRA will update and complete its participant files in a form acceptable to the Council which will permit the Council to assume the administration of the Columbia Heights HRA's Section 8 program. The Columbia Heights HRA is responsible for resolving with HUD any issues regarding past and current program budgets, year-end financial statements, and operating and project reserves. Although the transfer of the Columbia Heights HRA federal ACC authority to the Council is not part of this Agreement, the Columbia Heights HRA acknowledges that the Council may in the future explore with HUD the appropriateness of transferring the ACC authority and its associated funding to the Council, including any operating and project reserves that may have accumulated during the administration of the Columbia Heights HRA's Section 8 program. Upon request from the Council or HUD, the Columbia Heights HRA will provide reasonable assistance and cooperation in resolving ACC and reserves issues. 15. The Columbia Heights I-IRA will provide the Council and HUD with access to records and files pertinent to its Section 8 program and will, upon request, provide originals or copies of participant files and other records and files necessary for the administration of Section 8 program assistance to families residing in the City of Columbia Heights. Prior Transfer Agreement 16. Any conflicting or contrary term or provision contained' in the December 22, 1997 agreement between the Columbia Heights EDA and the Council governing the administration of the Section 8 program within the City of Columbia Heights is superseded by the applicable terms and conditions contained in this Agreement. HUD Approval 17. This Agreement is subject to HUD review and approval and shall become effective only if approved by HUD. Page 4 of 5 IN WITNESS WHEREOF, the individuals signing this Agreement on behalf of the Columbia I ,l~andy Schumacher - s8transfer, doc Page 5~ Heights Economic Development Authority, the Columbia Heights Housing and Redevelopment Authority and the Metropolitan Council represent that they are authorized to execute this Agreement on behalf of their respective organizations. Subject to HUD approval, this Agreement is effective on the date this Agreement is signed by the Council's authorized representative. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY METROPOLITAN COUNCIL By By Date Robert Ruettimann President Jay R. Lindgren Regional Administrator Date By Date Walter Fehst Executive Director COLUMBIA HEIGHTS HOUSING AND REDEVELOPMENT AUTHORITY By John Hunter Chair Date By Date Walter Fehst Executive Director Page 5 of 5 SSTRANSFER MC 0~00