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Item No: 2 Meeting Date: October 1, 2001 Type of Business: WK WK: Work Session; PH: Public Hearing; CA: Consent Agenda; CB: Council Business City of Mounds View Staff Report To: Honorable Mayor and City Council From: James Ericson, Community Development Director Item Title/Subject: Discuss Request from Tenant of 3016 County Road H2 to Accept Section 8 Voucher Date of Report: September 27, 2001 Background: On May 14, 2001, the Mounds View Economic Development Authority approved Resolution 01-EDA-148 which authorized the purchase of 3016 County Road H2. The property, which was identified for inclusion within a larger residential redevelopment project, has been utilized as a rental property since June of 2001. The tenant, who is a certified eligible participant in the Section 8 program, has requested that the City agree to accept Section 8 vouchers for this property. Currently the City does not accept Section 8 vouchers at either of its two rental properties, though it certainly could do so. Discussion: Because we have not previously considered entering into a contract with the Metro HRA (the Metropolitan Council organization that oversees the Section 8 program in this area) staff contacted Metro HRA and did some research into the issue, paying close attention to any possible “downsides” that would affect the City’s ability to rent or redevelop the property. The implications from accepting this type of assistance that would cause any deviation from the current rental arrangements would be minimal for the most part. In order for the tenant to receive a housing assistance voucher from Metro HRA, a few things would need to happen. First, unless the tenant has already applied and been approved by Metro HRA for a housing assistance voucher, an initial application and waiting period of up to possibly 18 months will occur. The tenant at 3016 County Road H2 has been approved for such a voucher. Secondly, a new lease will need to be entered into between the tenant, the City, and Metro HRA. The new lease will not be signed and approved until the property is inspected and found to be in compliance with HUD Housing Quality Standards (HQS) by an inspector from Metro HRA or one of its contracted agents. After the initial inspection, the property would then be required to be inspected annually before the lease can be renewed. For the most part, HQS guidelines are less stringent than those of the City's housing maintenance code. One exception, however, would be the lead paint regulations which would apply to any property built prior to 1978 with children under the age of 6 present.