Item Coversheet

Agenda Item - 2.a.


Garden Grove Housing Authority


INTER-DEPARTMENT MEMORANDUM

To:Scott C. Stiles

From:Lisa Kim
Dept.:Director 

Dept.: Economic Development 
Subject:

Joint Item with the City Council:  Approval of an Amendment to the Subrecipient Agreement between the City of Garden Grove and the Garden Grove Housing Authority for the administration of a Tenant Based Rental Assistance Program.  (Action Item)

Date:7/12/2016

OBJECTIVE

The purpose of this memorandum is to request that the Garden Grove Housing Authority (the “Authority”) consider and approve an Amendment to the Subrecipient Agreement (the “Agreement”) between the Authority and the City of Garden Grove (the "City") for the administration of a Tenant Based Rental Assistance Program (“TBRA”).

BACKGROUND

The City receives an annual HOME Investment Partnership (HOME) grant from the U.S. Department of Housing and Urban Development (HUD). On April 12, 2016, the City Council approved the 2016-17 Annual Action Plan which, among other actions, allocates HOME funds to the Authority for the purpose of providing a TBRA program to qualified very low- and extremely low-income residents.

DISCUSSION

This Amendment will allow the City to continue to contract with the Authority as a subrecipient to operate a TBRA Assistance Program for the next two years, allocate $787,335 in HOME funds for the program and provide a tenant selection preference to Garden Grove households who may be displaced through an action of the City or the Authority.  The TBRA program is modeled after the Section 8 Housing Choice Voucher Program.  The City’s TBRA program will subsidize the difference between 30 percent of the household’s adjusted monthly income and the City established rent limit.  Tenant selection will be based upon very low- and extremely low-income Garden Grove households, which is a high priority need population who are in jeopardy of losing their housing. Like the Section 8 program, the Housing Authority will make payments directly to property owners on behalf of eligible families annually.   In order for the Authority to administer the TBRA program on behalf of the City, HUD requires that both the Authority and the City enter into a Subrecipient Agreement.

FINANCIAL IMPACT

The Subrecipient Agreement  will have no impact on the General Fund.  Funding the TBRA program will come from the City’s Federal HOME funds and will not impact any other planned activities or projects.

RECOMMENDATION

Staff recommends that the Housing Authority:

 

  • Approve the Amendment to the Subrecipient Agreement between the Authority and the City for the administration of a Tenant Based Rental Assistance Program; and

 

  • Authorize the Director to execute the Amendment on behalf of the Authority and any pertinent documents to effectuate the Amendment, and to make minor modifications as appropriate.

 

By:  Allison Mills, Neighborhood Improvement Manager




ATTACHMENTS:
DescriptionUpload DateTypeFile Name
Amendment6/30/2016Cover MemoGG-HA_HOME_PROGRAM_SUBRECIPIENT_AGREEMENT_AMENDMENT.docx
Executed Agreement6/30/2016Cover MemoExecuted_Home_Investment_Partnership_Program_Subrecipient_Agreement_(1).pdf