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Home My WebLink AboutAGENDA REPORT 1984 1219 CC REG ITEM 10AALBERT PRIETO Mayor JAMES D. WEAK Mayor Pro Tem THOMAS C. FERGUSON Councilmember DANNY A. WOOLARD Councilmember LETA YANCY•SUTTON Councilmember DORIS D. BANKUS City Clerk JOHN C. GEDNEY City Treasurer TO: FROM: DATE: SUBJECT: .v100RPARK M E M O R A N D U M The Honorable City Council J Diane Eaton, Associate Planner City Council Meeting of December 19, 1984 Rental Moratorium Urgency Ordinance PROPOSED ACTION: . STEVEN KUENY City Manager CHERYL J. KANE City Attorney NIALL FRITZ Director of Community Development R. DENNIS DELZEIT City Engineer JOHN V. GILLESPIE Chief of Police Direct Staff to continue discussion with owners and tenants of the Moorpark Villa Apartments, and report back to Council at the meeting of January 2, 1985. BACKGROUND INFORMATION: As the City Council is aware, an urgency ordinance of the City was adopted on September 19, 1984, which imposed a moratorium on rental increases for dwelling units within apartment buildings containing five or more units. The ordinance expires January 18, 1985, which is 120 days after adoption. Since the passage of this ordinance, Staff has met with representatives of proposed new owners of Moorpark Villa Apartments (47 unit apartment structure), the current Management Company, Opportunity Housing, Housing Authority of Ventura County, and tenants in the building. The purpose of the meetings was to gather information which would permit an equitable resolution of the proposed rent increases at this complex to avoid an extension of the moratorium or permanent enactment of rent control. The lease agreement discussed at the time of the imposition of the rent moratorium was apparently one of the existing HUD Section 8 leases. We have been informed by Opportunity Housing that other leases are not in use. 799 Moorpark Avenue Moorpark, California 93021 (805) 529686 -: The Honorable City Council Council Meeting of December 19, 1984 Page 2 Moorpark Villa Apartment complex contains the following: Current FHA Range FHA Range Mid -Point Proposed Rents HUD Rent 47 units total 10 vacant units 10 existing HUD tenants 27 remaining, of which the mamagement firm, "Opportunity Housing ", indicated that 15 appear to qualify for HUD Section 8 Housing Assistance Payments 12 appear not to qualify for HUD. MOORPARK VILLA EXISTING RENTS AND PROPOSED INCREASES One Bedroom Two Bedrooms Three Bedrooms $215 - $386 $300.50 $255 - $424 $339.50 $305 - $459 $392.00 $475.00 $575.00 $625.00 $403.00 $473.00 $603.00 The Honorable City Council Council Meeting of December 19, 1984 Page 3 Staff contacted surrounding communities to compare rental rates of comparable units. The following data was obtained: CTTY OF THOUSAND OAKS One 512 Bedroom - $595 Two Bedrooms Three Bedrooms $575 - $650 $725 - $805 OTMV nF rAMARTT,T.n One Bedroom Two Bedrooms Three Bedrooms $450 $525 - $650 $700 - $750 rTTV OF gTMT VATJ.F.Y One Bedroom Two Bedrooms Three Bedrooms $500 - $630 $550 - $710 $600 - $770 The owners' representatives have indicated their intention to permit the 10 existing HUD tenants to continue on the program and their willingness to accept all other existing tenants to enroll in the HUD Section 8 program for a minimum of one year if they qualify. Opportunity Housing has indicated they will be providing the tenants with an application for HUD Section 8 Rental Assistance prior to the December 19 Council Meeting. The Section 8 Housing Assistance Program is a Federally funded subsidy program, designed to make rental housing affordable. In Ventura County, it is administered through the Ventura County Housing Authority. The criteria used by the Housing Authority is regulated by HUD as follows: 1. Low Tncome Household - 50a of median income for standard metropolitan statistical area 2. The applicant must be: a) elderly (62 years of age or older) b) handicaped or disabled c) constitute a low income family minimum -- one adult and one child The Honorable City Council Council Meeting of December 19, 1984 Page 4 The family's (or person's) yearly gross income must not exceed the follows: Number in Family Income 1 $11,200 2 12,800 3 14,400 4 16,000 5 17,300 6 18,550 7 19,850 8 21,100 Eligible applicants, upon certification from HUD through the Housing Authority, will pay no more than 30% of their monthly income (rent plus utilities). HUD, under Section 8, will subsidize the balance between family contribution and HUD established "fair market rate ". The present tenants (according to Opportunity Housing) are on a month -to -month lease under Farmer's Home Administration. Although HUD leases are normally for a one -year period, they may be terminated by either party for "just cause ", or mutually terminated by owner and tenant within 30 days. There is one major problem, however, in the Section Housing Assistance Program. Although there is an immediate need for assistance, the waiting period, after verification and certification of applicant, is as follows: 1) 4 to 6 months - family 2) 9 months to 1 year - elderly and handicapped. Staff is presently continuing discussions with the proposed new owners and tenants to resolve this concern. The major remaining area to be resolved is how much rent should be paid by the tenants eligible for HUD until they are actually enrolled in the Section 8 Rental Assistance Program. Staff will continue to work with the owners and tenants to reach an equitable resolution. Any resolution of this situation would be affected by signed leases between the tenants and the owners. If not resolved prior to January 16, 1985, the Council will need to consider an extension of the moratorium. DE: ddb Attachment: Information for Applicants for the Section 8 Program PHUNk (805) 49? -2791 (805) 529 -2126 (805)644 -8459 ROCHELLE S. STEPHENS HOUSING SERVICES SUPERVISOR Area Housing Authority of the County of Ventura 601 Daily Drive, Suite 300 RECEIVED Camarillo, California 93010 (805) 482 -2791 (805) 529 -2126 (805) 644.8459 KC 111 14 Information for Applicants for the Section 8 Program Section 8 in Brief: 4.Iry IM Glln OI: Fill—FIIIO 0J.. V- w■ L51 M V et c OY, TM. iN rM IM U wN M .1 w V_ el V,nwn O,unl, The Section 8 Housing Assistance Payments Program is a federally- funded subsidy program designed to help make rental housing affordable. It is set up under Title II of the Housing and Community Development Act of 1974. Eligibility Requirements Persons eligible for this program are: - Members very low- income families - Single persons who are at least 62 years old, or - Disabled, or Handicapped, or - Couples, one of whom is 62, disabled, or handicapped - Priority is given to residents who live or work in the area of the Area Housing Authority jurisdication. - The family (or person's) yearly gross income must not exceed the following: Number in Family Income Number in Family Income 1 $11,200 5 $17,300 2 12,800 6 18,550 3 14,400 7 19,850 4 16,000 8 21,100 Gross income is total income from all sources including: Salaries and wages, interest and dividends, Social Security, Social Security Disability and Disability Payments, SSI, AFDC, Regular Pay, Special Pay, and Allowances of an Armed Forces member who is a house- hold head or spouse, Unemployment and Disability Compensation, Workmen's Compensation, Net Income from a business, profession, or rental of property. Assets of a family are also taken into consideration and affect the income amount in some cases. Assets included savings accounts, stock and bonds, other forms of capital investment, and equity in real property. Amount of Rent Paid: The amount of rent you will be required to pay is determined by your gross family income less an allowance for: - Each dependent family member (as defined by HUD Regulations) - Medical expenses for elderly, disabled, or handicapped families (if over 3% of your annual income) - Child care (as defined by HUD Regulations) 30% of "income after allowances" is what most Section 8 tenants pay for rent and utility allowances. The Housing Unit: In order to be subsidized on this Program, the housing unit (house, apartment, or mobile home) must be located within Fillmore, Ojai, Thousand Oaks, Simi Valley, Moorpark or Camarillo, or within the unincorporated areas of the County (Somis, F1 Rio, and Saticoy 1 The unit must pass an inspection by the Housing Authority and be in "decent, safe, and sanitary condition." The monthly rent, including utility allowances must be within the established HUU Fair Market Rent amounts. Rent limits will be made available to you at a "briefing session" that you will be required to attend to receive your Certificate of Family Participation. Verification It is the responsibility of the applicant to bring in and /or check that all necessary verifications are received by the Area Housing Authority when required. You will be noti- fied by mail of what verifications are necessary and the date all paperwork is due. Please call one of our offices to make certain that we have received all necessary infor- mation to process your eligibility. Ojai 646 -7333 (Mon. & Wed. 1'2 -2 P.M.) Thousand Oaks 496 -7864 (Mon., Wed. and Fri. 1:30 -4:30 P.M.) Fillmore 524 -0696 (Tues. & Thurs. 10:30 - 12:30)