Minutes 05/27/1980 - Laserfiche WebLink

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I' c) I) ,,.; ).~ TUESDAY MAY 27, 1980 all other members of Council voting in the affirmative, Council approved a "Section 8 Moderate Rehabilitation" housing assistance program, as described in the following memorandum, dated May 22, 1980, from Mr. J. Michael Grubbs, Administrative Assistant to the City Manager: In our last three quarterly reports Gloria McIver and I have mentioned that Virginia Housing Development Authority (VHDA) has initiated a Moderate Rehabilitation Program in connection with the Section 8 Existing (rental assistance) program. For some time our office has emphasized the improvement of the quality of housing under the program, and the rehabilitation aspect of the Section 8 program would offer the City the opportunity to improve our housing stock with no direct cost to the City and only minor administrative effort by existing personnel. Last summer the City was one of ten localities in non-metro Virginia to be allocated Moderate Rehabilitation units, 20 for 1979-80. Since then, 19 other localities have expressed interest in the program. No agreement was signed between the City and VHDA as City Council had not been formally approached for approval of these units. This year the City was alloted II additional units (for a total of 31), and Henry County was allocated 13. The Board of Supervisors formally authorized our office to apply for and administer rehabilitation units for Henry County on April 28. A basic explanation of Moderate Rehabilitation is attached for your information. This program is very attractive for several reasons, the most significant of which are discussed below. 1) A major advantage of the existing program over other types of assisted housing is that the units are not confined to one neighborhood or section of the City, and that it does not involve the construction of a large "Rivermont"-type apartment complex. This would also be true for the Moderate Rehabilitation phase. The unit must be substandard and if it is occupied, the tenants must be eligible for the Section 8 program. As no permanent ~elocation will be permitted, this program would not result in the displacement or dispersal of people, nor would it cause a concentration of low-income persons in one particular neighborhood. As units become vacant, or when vacant units can be occupied, the owner would select the new tenant(s) from those certified by our office. 2) There are numerous financing alternatives available. The owner can finance rehabilitation with his own money, can negotiate his own loan with a local bank, or VHDA can assist in making financing arrangements. In no case would the City handle any money, be involved in the financing of work, or be involved in real estate transactions.