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MAY 11990 BOOK FADE D. HUD Administered Rental Rehabilitation Program for Small Cities (Non Formula) The Board reviewed the following memo dated 4/23/90: TO: The Honorable Members of the DATE: April 23, 1990 FILE: Board of County Commissioners THROUGH: H.T. "Sonny" Dean, Director Department of General Se ees SUBJECT: HUD - Administered Rental Rehabilitation Program for Small Cities (Non Formula) 01a FROM: Guy L. Decker, Jr,. REFERENCES: Executive Director I.R.C. Housing Authority It is recommended that the data herein presented be given formal consideration by the County Commission. DESCRIPTION AND CONDITIONS: The Department of Housing and Urban Development (HUD) has announced a competition and availability of funds. for a HUD -administered Rental Rehabilitation Program for Small Cities, pursuant to Section 17 -of the United States Housing Act of 1937 (42 USC 14370) which was enacted by Section 301 of the Housing and Urban -Rural Recovery Act of 1938 (Public Law 98-81), approved November 30, 1983. A total of $974,000 in Rental Rehabilitation Program grant funds and Section 8 Housing Vouchers are available for the Rental Rehabilitation Program for Small Cities in the State of Florida. In HUD's Circular Letter No. 90-21 dated March 28, 1990, Indian River County was included in the list of eligible cities and counties. The deadline for submission is 4:00 P.M. May 22, 1990, and must be received on that.date In the DHUD Jacksonville office to be considered in this year's competition. The program is designed to assure an adequate supply of standard housing affordable tc lower-income tenants as it increases the supply of private market rental housing available to lower-income tenants by providing government funds to rehabilitate existing units and provide rental assistance to lower-income persons to help them afford the rent of these units. One Section8 Certificate and/or Voucher can be provided for each $7,500 of grant funds to help eligible lower-income tenants to pay the rent for rehabilitated units. In order to leverage the maximum amount of private capital, rehabilitation subsidies are generally limited to 50.per cent of the cost of rehabilitation, not to exceed $7,500 per unit adjusted for high cost areas. Grant funds may only be used to correct substandard conditions, make essential improvements, and repair major systems in danger of failure. Units will be rented at market rents, and no special project rent controls or restrictions will be used. Within the lower-income and neighborhood targeting requirements, the Rental Rehabilitation Program leaves broad opportunities for local program design and flexibility. ALTERNATIVES AND ANALYSIS: This is the fifth year Indian River County has been placed on the eligibility list to enter the competition for funding, and this type of program parallels our existing rehabilitation housing efforts. RECOK,HIDATIONS: We respectfully request the County Commission to authorize its Chairman to execute the application for submission to the Department of Housing and Urban Development for this grant. This program will rehabilitate approximately twenty (20) substandard rental units in the distressed neighborhoods within this jurisdiction and will make available additional standard units to be utilized by the Indian River County Section 8 Rental Assistance Program. Our total request for Federal assistance is One Hundred Thousand Dollars ($100,000.00). This program requires no additional County funds. 6