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HomeMy WebLinkAbout~Master - Non-renewal of ACC for Moderate Rehabilitation Rental Subsidy Program RESOLUTION NO.04-539 RESOLUTION APPROVING NON-RENEWAL OF ANNUAL CONTRIBUTIONS CONTRACT(ACC)WITH HUD FOR CITY'S SECTION 8 MODERATE REHABILITATION RENTAL SUBSIDY PROGRAM FOR THE CITY OF AMES WHEREAS, in 1982, the City of Ames entered into a contract with the Department of Housing and Urban Development (HUD) to administer 31 units located in the Sheldon Munn Apartment complex that would be receiving funding under the Section 8 Moderate Rehabilitation Program;and, WHEREAS,this program is to assist very low-income,elderly,and displaced persons with rental housing needs; and, WHEREAS,the Federal Fiscal Year(FFY)2004 Consolidated Appropriations Act budget reduction also affected the Section 8 Moderate Rehabilitation Program;and, WHEREAS,when HUD renewed the FY 2004/05 Annual Contributions Contract(ACC)with the City,it was also funded through December 31,2004,with a budget authority of$119,902;and, WHEREAS, on November 24, 2004, HUD notified the City that it was time to begin the 90-day notice for processing and renewing the Moderate Rehabilitation Program contracts for July 1,2005,between the City,Mark Clark, owner of the Sheldon Munn Apartments,and HUD;and, WHEREAS,in contrast to previous requests to pursue renewing the contracts, staff is now recommending non- renewal of the Moderate Rehabilitation contracts based upon several factors;and, WHEREAS,due to funding reductions,HUD will only provide funding to those units that are under lease,which is currently 20;and, WHEREAS,an alternative that could be pursued in accordance with HUD regulations is to request a reduction in the number of units under the Annual Contributions Contract from 31 to 20 units,and request that the 20 units currently under lease be converted to Vouchers under the City's Section 8 Housing Choice Voucher Program;and, WHEREAS,under this alternative,those participants currently under a lease would not lose their assistance;and, WHEREAS, converting the remaining Moderate Rehabilitation units to the Voucher Program will make the possible contracting out of services more attractive to another Housing Authority. NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of Ames,Iowa,that the non-renewal of the Annual Contributions Contract with HUD for the City's Section 8 Moderate Rehabilitation Rental Subsidy Program effective July 1, 2005, is hereby approved, and the request for conversion of 20 units to the Section 8 Housing Choice Voucher Program effective February 1,2005,is further approved. ADOPTED THIS 21"day of December,2004. Diane R.Voss,City Clerk Ted Tedesco,Mayor Introduced by: Goodhue Seconded by: Cross Voting aye: Cross,Goodhue,Goodman,Mahayni,Vegge Voting nay: None Absent: Wirth Resolution declared adopted and signed by the Mayor this 21 s'day of December,2004.