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Section 8 Report October 1, 2001 Page 2 On these applicable properties, no deteriorated painted surfaces can be present anywhere on the property, interior or exterior. If any deteriorated surfaces are identified by the inspector, they would need to be eliminated and surfaces stabilized (repainted) by an individual certified in using “lead-safe” work practices. For the Council’s information, the term Section 8 originates from Section 8 of the IRS tax code. For larger properties, a tax savings can be achieved by participation in the Section 8 program. According to the Metro HRA, there are currently 81 residents in Mounds View who have Section 8 housing assistance vouchers from Metro HRA. Accepting Section 8 vouchers would not restrict the City’s ability to rent its properties on a month-to-month basis nor would it inhibit future redevelopment and it would not result in burdensome or onerous eviction requirements. In addition, it should be noted that acceptance of Section 8 vouchers may actually benefit the City by increasing its Housing Performance Score ranking as determined by the Met Council. (This rank is taken into consideration if the City were to seek TEA-21 or Livable Communities grants.) Recommendation: Given what we have learned about the Section 8 program administered by the Metro HRA agency, staff is recommending that the City agree to participate in the Section 8 program by accepting a Section 8 voucher at 3016 County Road H2. If the Council is in agreement, we will have the property inspected to ensure compliance with HUD Housing Quality Standards. Any resultant contract or lease revision would be brought before the EDA for formal approval. _____________________________________ James Ericson Community Development Director 763-717-4021 C:\WINNT\Profiles\Jime\Favorites\City Council Stuff\Section 8 Report - Oct 1, 2001.doc