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HomeMy WebLinkAbout780532.tiff fl rEf ORAf1DUf r1 To_Gary_Fortner orrr _Scpt_em_b r._7, 1978 COLORADO From Allen Jost Subject: Housing Authorities This memo is a summary of my survey of some of. the housing authorities in Colorado. The purpose of the survey was to obtain information about the administration and operation of a housing authority. Many topics were discussed with housing authority staff members; but in each case , I asked three specific questions. These questions were : 1 ) What is the salary of the housing authority director?, 2) What are the administrative and program budgets?, and 3) What were the original staff requirements of the housing authority? Fortunately, the Adams County Housing Authority conducted a salary survey of Denver area housing authorities in January of 1978. The results of the survey are attached to this memo. Information concerning the administration and operation of the various housing authorities is not as simple to classify. Therefore , I have included a general discussion of each housing authority . 1 . The Pueblo City Housing Authority is one of the oldest housing authorities in the state. It was organized in the early 1950' s and began construction of low rent units in 1953. Today, the authority administers 1 , 000 rental units and it plans to build 130 Section 8 rental units in November of 1978. The Authority is not dependant on any local funds for support . In addition, the Authority does not use Community Development Block Grant funds to subsidize its operation . The Authority employs 10 people and has an administrative budget of $121 , 000. 2. The Ft . Collins Housing Authority administers 145 Section 8 rental units and it has made application for 50 public housing units. There are 3h staff positions. The City of Ft . Collins provides a social worker and a maintenance than on a half-time basis . The Director feels the Authority will need to administer 300 Section 8 units before it will be self-sufficient . 3. The Adams County Housing Authority administers 250 Section 8 units. It has a staff of 13 people . The Authority is subsidized in several ways. One form of subsidy involves the use of C.E.T.A. employees. Another subsidy is a direct cash payment from Adams 780532 • Gary Fortner (lousing Authority Memo September 7 , 1978 Page 2 • County ($15 , 000) , Thornton ($6, 000) and Commerce City ($3 , 000) . (The Housing Authority has a contract with Thornton and Commerce City to administer certain housing programs within each city. ) Finally , the Authority administers the Adams County Community Development Block Grant Program. Therefore , it receives a percentage of those funds for administra • - tive purposes. The Housing Authority Director feels it would need to administer 500 Section 8 units to make the Authority self-sufficient with the current • number of staff members . • 4. The Jefferson County Housing Authority administers 175 Section 8 rental units. It has applied for 50 units • of public housing. The Authority has 5 regular, full time employees. Also, there are 11 C. E.T.A. employees working on carpooling and rental units surveys for Jefferson County. The County contributes approximately one-half of the. $68 , 000 administrative budget . ( It is estimated that about one-half of the Housing Authority work is devoted to County business. ) The Authority has not been involved in the administration of the Commun- ity Development Program. Therefore, it has not received any administrative monies from this program. The current construction and acquisition budget for the Authority is $5, 500, 000. The Director of the Authority feels it will need to administer 300 Section 8 units before it will be self—sufficient . 5. The Boulder County Housing Authority administers 111 Section 8 units . This fall , the authority mill com- plete constructin on 12 units of Section 8 family housing and an 3 unit elderly housing project . The current construction budget is approximately $1 , 500, 000. The Authority has 7 employees. Four of them are C.E.T.A. employees and 3 are regular full-time employees. The Authority will be able to maintain these staff positions because it has received a Community Development B].ock Grant . Some of the administrative money from this grant will be used to put the C.E.T.A. employees on a regular, • full-time basis. Boulder County appropriates $96 , 000 for the Housing Authority. Of this amount ,. $46 , 000 is allocated for administration and $50 , 000 is allocated for rehabilitation grants. The Authority has contracts with several towns and cities in the County. These • contracts are very specific, but they do allow the Authority to carry out housing programs within the cor- porate limits of the towns. Gary Fortner Housing Authority • September 7 , 1978 Page 3 • I have several comments to make based on my conversations with the housing authority employees. These comments concern staffing and funding as. well as housing assistance programs . 1 . housing Authority Staff : Most housing authority directors believe it is more efficient to begin a housing authority with a part-time person. Since the amount of time neces- sary to prepare housing assistance applications varies, a full-time employee may he underemployed. Initally , the housing authority employee may spend 7-3 hours per day working on housing applications. Then , while the applica- tions are being processed , he may only spend a few hours a week on the program. Another problem associated with the initial staffing of a housing authority involves the type of .work which needs to be done. Two special skills are required to begin and operate a housing authority. One skill requires a person who can prepare and process housing assistance applications. This person would need to educate the housing authority board and the community about housing assistance programs.. The other skill requires an individual who can manage housing units. He must, take care of the day-to-clay oper- ation and administration of the occupied dwelling units . There are few individuals available who can perform both of these functions. It is very likely that the' only way Weld County could secure such a person is to hire an individual who has proven himself while working for another housing authority. This could be difficult and expensive. 2 . Funding Requirements : There is little doubt that a fully committed housing assistance program will require a subsidy from Weld County. This subsidy may be in the form of • staff , office space and equipment , or tax money. It is estimated that it takes about 250 to 300 Section 8 rental • units to sustain a housing authority operation. It is important that this point be stressed. A committment to housing assistance will almost certainly require financial support . This support may be required, for as many as 3 to- 5 years. However , there are some economic benefits which result from housing assistance programs. For example , approximately three years ago , Boulder County actively entered the housing assistance field. This year , Boulder County budgeted $46, 000 for administration and $50, 000 for rehabilitation grants. However , Federal and State assisted construction projects will begin this year with a budget of $1, 500, 000. This does not include a $100, 000 revolving rehabilitation loan program and a $450 , 000 Community Development Block Grant . The multiplier effect of over $2,000 , 000 in housing assistance programs must have a substantial social and economic impact on Boulder • County. Gary Fortner (lousing Authority • September 7 , 1978 Page 1 • • 3 . Housing Assistance Programs: Perhaps the most popular • housing assistance program is the H.U.D. Section 8 Rental Assistance Program. One Section 8 program deals with privately owned rental units and the other deals with rental units contructed and owned by public agencies such as housing authorities. The privately owned Section 8 program is much easier to begin but it is very difficult to administer . . The Depart- ment of R.U.D. establishes a fair market rent and apart- ment owners subscribe to the progrm, if they wish, The • housing authority receives a certain amount of money for • administration and the rental unit owner receives the fair market rent for each occupied unit . The apartment occu- pants must meet income guidelines established by H.U .D. In no case shall they pay more than 25% of their family income for rent . H.U.D. pays the rest . The fair market rent is the major problem with this program. Oftentimes the fairmarket rent established by H.U.D. is too low for local rental market conditions. . This makes it very difficult to find apartment owners to participate in the program. The other. Section 8 program allows the housing authority to build and own the rental units. This program is very difficult to get started but it is relatively easy to administer and operate. It is not unusual , because of • "red tape" , for this type of program to take 2 or 3 years to -be operational . The Public Housing Program administered by H. U .D. allows housing authorities to develop, own and operate housing units. The -units are financed through the sale of federally insured bonds. (H.U.D. repays the bonds Over 40 years . ) The tennant pays no more than 25% of his monthly income for rent . The rent payments are used to operate and maintain the units. The Farmers Home Administration administers the 504 Rural Housing Program . Several of the five small town housing authorities in Weld County participate in this program . Rental units are constructed by the housing authority; with a loan from 1'mllA. I f the housing authority rents any units to low income elderly persons , the authority receives an interest credit . The interest on the loan may be as low as 1%. This enables the housing authority to charge a masonable rent for the units. In Windsor, for example , a single bedroom apartment rents for $113 . 00 per month. Many small housing authorities participate in this program for several reaons . First , it is much easier than ,the H.U.D. pro- Gary Fortner Housing Authority September 7 , t97H Page 5 grams. Very few restrictions are placed upon the authority by FmIIA. Most small housing authorities do not have the staff to process the H.U.D. housing program paper work. Secondly , most towns have a shortage of low income housing for the elderly. The Windsor Housing Authority has over seventy applicants on its waiting list . Third, most towns do not want to attract "low income" families associated with H.U.D. housing programs . This program deals only with elderly persons and most of these do not even need to be low income. I believe the length of this memo is an indication of the complexities involved in entering the housing assistance field. I recommend that we proceed cautiously and that we continue to learn more about housing assistance programs before we make any applications . AMU. SAl AR11iS lOlt 1I0L 1 NG AUTI KMITY RSY)NNIS1, • THE DENVPlt METROPOL., FAN AREA - 1/25/78 • AllAMS WUN1Y h OUSING AlJI1KOItl'IY Director ≥19,000.00 ARVADA HOUSING AUI'IIOR11Y Executive Director/Planner $17,200.00 Section 8 Coordinator 13,500.00 AURORA HOUSING AUTHORITY Executive Director 822,000.00 Rehabilitation Coordinator 17,000.00 • Cost Estimator 14,000.00 Secretary 9,000.00 BOULDER COUNTY MOUSING AUTHORITY housing Director 824,288.00 Housing Assistance Coordinator 12,756.00 Housing Planning Aide 10,752.00 Housing Rehabilitation Specialist 1.0,488.00 Housing Financial Specialist 10 488.00 Secretary 7,992.00 BOULDER CITY HOUSING AUTHORITY Executive Director $26,500.00 Assistant Director, Section 8 19,400.00 Rehabilitation Coordinator 19,000.00 Inspector 16,500.00 Loan Grant Specialist 13,100.00 Clerical 10,700.00 7,800.00 BRIGTION HOUSING AUTHORITY Executive Director $ 3,840.00 time Maintenance Person 7,280.00 ENGLEWOOD HOUSING AUTHORITY Assistant Director $17,628.00 - $21,420.00 Administration Assistant 14 ,184.00 - 17,256.00 Building Inspector 13,212.00 - 16,032.00 Secretary 9,372.00 - 11,412.00 IT, COLLINS HOUSING AUTHORITY Director $].2,000.00 JEFFERSON COUNTY ][OUSIUG AUTHORITY Executive Director $21,000.00 Economist Planner 8,400.00 Office Manager 8,400.00 Secretary/Bookkeeper 7,200.00 LAKEWOOD HOUSING AUTHORITY Executive Director $19,560.00 than Counselor 13,428.00 Housing Specialist (Rehab Estimator) 13,428.00 Section 8 Gxordinator 13,728.00 • HOUSING AUTHORITY PERSONNEL Page 2, con't. LITTLEF0N IEUSING AUTHORITY Executive Director $17,3!X).00 Rehabilitation Coordinator 14,300.00 Maintenance Person 11 ,260.00, $9,270.00 UUSVILLE HOUSING AUTHORITY Executive Director $24,000.00 Rehabilitation Coordinator 12 60000 -Secretary 11 ,000.00 Hello