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AW MEMORANDUM DATE: December 3 , 1981 TO: City Manager, Mayor and Councilmen FROM: Ron Berg , Administrative Assistant SUBJECT: Section 8 Housing Update -------------------------------------------------------------------- The City is in its seventh year of participation in the Section 8 rent assistance program, the City having been a participant since the program' s inception in March , 1975 . Under the Section 8 program, the local housing authority (Metro- politan H. R.A. ) will help pay the rent of a qualified low or moderate family , (-e.g. , currently $19 , 550/year limit for a family of three) . Eligible families select their own rental units and pay no more than 25% of their income toward the rent with Metro H .R.A. paying the balance directly to the landlord. Private residences , duplexes , and apartments are eligible units if they are within the maximum rent limits of the program (e.g. , currently $372 . 00/month for a two-bedroom) . • The number of families participating in St. Anthony varies slightly from month to month. In 1981 , participants numbered between 21 and 25 per month with the present number being 22 families . These numbers are somewhat below (.about 5) previous years participation . I attribute this to fewer overall vacancies in City apartments . Of the 22 families , 14 are single parent households ; 3 are two parent households ; 5 are single senior citizens ; and 0 are physically handicapped. Also, of the 22 units , 9 or 41% are in Diamond 8 Terrace apartments ; 6 or '27% in Macalaster Manor; and 7 or 32% in other apartments . The local representative of the Section 8 program is responsible for application processing, tenant briefing and assistance , in- spection service , marketing and public information , housing assistance payments , contract administration and the billing and status report. To administer these services , it is estimated to require 35 hours of staff time per month. Reimbursements to the City for administration of the program for the period of 3/75 through 6/81 have totaled $24 ,691 . The reimburse- ment schedule is based on a flat rate per participant. This method of reimbursement became effective in 1979 with but one increase since then which averages to a little more than 3. 5% a year. Although the time spent by staff is substantially less than Metro Council ' s formula would project , local staff administration of the • program, under the present set-up , is not cost-effective . The program is va-luable in that it provides a local contact for a