141-2000 LTC
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CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
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141 -- 2000
L.T.C. No.
LETTER TO COMMISSION
TO:
Mayor Neisen O. Kasdin and
Members of the City co~
Lawrence A. Levy O.
City Manag~
Housing AU~; of the City of Miami Beach
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July 24, 2000
FROM:
SUBJECT:
On June 7, 2000, the City Commission referred to the Community Affairs Committee (CAC) a
discussion regarding the Housing Authority of the City of Miami Beach (Housing Authority). This
discussion item has been deferred to the Committee's next meeting on July 28, 2000. The Housing
Authority has agreed to conduct a presentation during the meeting of the CAC. In anticipation of
said presentation, the Administration is providing pertinent information regarding the Housing
Authority.
The Housing Authority hired Casterline Associates, P.C., as consultants, to conduct a review of their
operations and determine if adequate internal controls were in place. A summary of the reports
prepared by Casterline Associates is attached.
U.S. HUD and the HUD Office of the Inspector General have been conducting an audit of all
operations of the Housing Authority. HUD issued an in-depth Consolidated Management Review
(CMR) which is also attached hereto. HUD has placed the Housing Authority, Section 8 Department
under probation.
Since 1992, the City and the Housing Authority have entered into a Joint Program for Housing-
Related Community Development Enhancement (Interlocal Agreement). Under the terms of the
Interlocal Agreement, the Housing Authority has funded services provided by the City for the
Housing Authority. These services historically have included four components: Code Compliance,
Recreation Program, Enhanced Police Protection, and Subsidized Child Care. As part of the ongoing
audit, HUD has preliminarily indicated that the Housing Authority may have erred in determining
that the components of the Interlocal Agreement were eligible activities and/or that the Housing
Authority may have used incorrect accounts to pay for said services. Therefore, pending the official
report from HUD, the Housing Authority has not renewed the Interlocal Agreement for FY
1999/2000. As a consequence, the City has canceled the services under the Interlocal Agreement,
effective July 1,2000. Under the terms of the Interlocal Agreement, payments are processed through
the City of Miami Beach / Miami Beach Housing Authority Benefit Fund Goint account) between
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the City and the Housing Authority. Therefore, HUD's Office of the Inspector General is auditing
the records of the joint account kept by the Finance Department of the City.
In 1994, the City also entered into a HOME Program Agreement with the Housing Authority for the
Single Parent Family Housing and Resource Center, 1231-1251 17th Street, Miami Beach. Under
the terms of the HOME Program Agreement, the City committed $760,000 in fiscal years 1993/94
and 1994/95 HOME Program funds toward the construction of the Center. The HOME funds have
not been spent. The Housing Authority has designed the Center and construction permits have been
obtained. However, the Housing Authority has not decided if it will proceed with construction. U.S.
HUD has requested that the City provide a time frame for the expenditure of the HOME funds
committed to this project. The City has notified the Housing Authority, and at their July 11,2000
meeting, Commissioner Gutierrez was asked to meet with the City and to report back to the Board
with a recommended action plan.
Concurrently, and as referred by the City's Land Use and Development Committee, Joseph Johnson,
Transportation/Concurrency Management Director, conducted a presentation to the Board of
Commissioners on July 11, 2000 regarding the West Avenue Connector Study. The proposed
Connector is to run through the lot located at 1231-1251 17th Street, which the Housing Authority
acquired intending to build the Single Parent Center. On June 12, the Land Use and Development
Committee postponed any action on the Connector until September in order to allow time for the
Housing Authority to determine whether they will proceed with the construction of the Single Parent
Center. If the Housing Authority does not proceed with construction of the Center, the City may
consider acquiring the land from the Housing Authority.
On July 12,2000, the City Commission appointed Steve E. Chaykin to the vacancy in the Board of
Commissioners of the Housing Authority. Amy Turkel recently resigned from the Board. The
Office of the City Clerk has obtained a copy of her resignation letter from the Housing Authority
(attached).
The Housing Authority has conducted a nationwide search for a new Executive Director. As a result,
Larry Shoeman from Brevard County has been recruited and started as Executive Director on July
17,2000.
Attached is also a copy of the Florida Statutes, Chapter 421 Public Housing. Sections 421.001
through 421.54 refer to Housing Authorities.
LAL/CMC/RM/MDC
Attachments
c: Christina M. Cuervo, Assistance City Manager
Patricia D. Walker, Director, Finance Department
Randolph Marks, Assistant Director, CommunitylEconomic Development
Miguell Del Campillo, Director, Housing Division
Steven K. Cumbo, Housing Specialist
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HIGHLIGHTS OF REPORTS PREPARED BY CASTERLINE ASSOCIATES, P.C.
FOR
THE MIAMI BEACH HOUSING AUTHORITY
Report:
Phase I - Observations & Recommendations Regarding the Internal Control
Structure of Section 8 Department
The report states that:
. The purpose of this review was to determine if adequate internal controls are in place for
the Section 8 Program at MBHA.
. The review was, to some extent, prompted by allegations of impropriety being leveled by
a MBHA housing inspector. These allegations include the overstatement of contract rents
in return for kick-backs, in the form of cash and gifts, to key members of the MBHA staff,
threats on the life of this inspector from landlords intended to discourage investigating into
improprieties, steering of residents to certain landlords and falsification ofHQS inspection
results in return for bribes.
. The most significant discovery made involves the lack of adequate written procedures in
virtually every area of the Section 8 program examined.
. Due to the absence of adequate internal controls in the setting of contract rents to owners,
it is very difficult to effectively refute the charges of impropriety being made. Compounding
the problem is thefact that these controls have been absent for a significant but undetermined
period of time.
The report recommends that:
. For the next audit MBHA engage a well-known form with solid national reputation. In
addition, the firm chosen to conduct the audit should be advised that they would be
conducting a particularly high-risk audit.
. MBHA implement a policy that will ensure that an audit firm will not be retained for more
than three consecutive years.
. The chief recommendation arising from this review involves advising the Office of the
Inspector General (HUD) of the allegations and the long-standing internal control issues.
Since the allegations being made cannot be refuted, due to the substantial internal control
flaws, an outside entity should be brought in to conduct an in-depth review.
. If it can be established by an outside group, such as the Inspector General's Office, that the
allegations are not true, steps should be taken to repair the damage that has been done.
Report:
Phase II - Observations & Recommendations Regarding the Internal Control
Structure of the Accounting Department
The report states that:
. The MBHA has very significant flaws in its internal control structure. This is the case in
every area of the Authority evaluated. This combined with projected operating deficits, a
new comptroller, new computer system, a significant development project and a HUD
mandate to convert to Generally, Accepted Accounting Principles has brought the Authority's
leadership to a significant crossroad. The repercussions of actions taken now will, without
a doubt, be felt for many years to come.
Budgetine
Public Housing
. The budgets prepared by MBHA are not very meaningful. Technical / mathematical errors
and omissions were found.
. Budgets should be, if possible, based on actual expenditures. Therefore, it is vital that
transactions be recorded in an accurate and detailed manner. Budget forms in a Lotus 123
Spreadsheet have been provided.
Section 8
. Budget forms in a Lotus 123 Spreadsheet have been provided. This forms will perform
mathematical calculations automatically.
Budget Monitoring
. The Authority has not been developing meaningful budgets for the expenditures being made
with Section 8 and Public Housing funds. No formal procedures exist that facilitate any
degree of budget monitoring.
. The Authority should develop budgets for all programs in addition to a consolidated budget.
Once produced, budgets should be monitored.
Cost Allocation
. The Authority has no written allocation plan that provides an equitable basis for allocating
the costs incurred by the Authority's central administrative offices to the various programs
it administers.
. As the Authority's accounting system develops and can afford greater sophistication, the
adoption of a mixed basis allocation system is advised.
Cash & Check Stocks
. The MBHA has significant internal control deficiencies.
. Many of the cash control problems could be corrected by constructing a lockable closet in
the comptroller's .office and purchasing a cash register and secure drop-box. When not in
use, all signature plates should be kept in the safe and the safe should be locked at all times.
Blank check stocks should be moved to the secure closet.
. It should be mentioned that, if the MBHA wishes to have the best internal controls possible,
cash payments for rent should be forbidden and the Authority should cash no resident checks.
Purchasinf: and Accounts Payable
. The MBHA has significant internal control deficiencies.
. Once approved, a copy of all purchase orders should be sent to the vendor, accounting and
the acquiring department. The accounting department should maintain a file of all purchase
orders. The receiving function should be centralized. A receiving log should be maintained
at the central receiving point.
Fixed Assets
. The inventory of fixed assets is being maintained using a somewhat antiquated index card
system.
. It is recommended that the MBHA immediately begin to implement conversion steps to
move Fixed Assets toward Generally Accepted Accounting Principles in accordance with
new requirements for PHAs.
Materials Inventory
. In the past, obsolete or otherwise unusable materials were sold in bulk. 1bis transaction was
not properly accounted for.
. Whenever materials are sold or disposed of in any way, this activity should be thoroughly
documented. It has been some time since obsolete or otherwise unusable materials have
been disposed of. These items have been steadily piling up in Authority storage space. It
should be noted that storage space is at a premium at the Authority.
Standard O'perating Procedures
. The MBHA must develop updated Standard Operating Procedures for all Finance functions
including Tenant Accounting, Fixed Assets, Accounts Payable, Materials Inventory,
Payroll, General Ledger, Budgeting, and Financial Reporting. This task is particularly
important now that the MBHA has purchased a new computer system.
. The MBHA should develop a policies and standard operating procedures manual accessible
to all Finance Department personnel.
Report:
Inspection Report - Summary of Findings
. The are significant flaws in the practices of the MBHA inspection staff. The MBHA
inspectors are passing units that do not meet HQS standards. However, no patterns were
found in the inspection data that indicate anything other than training and procedural
deficiencies.
. Immediate and decisive correction action should be taken by the MBHA to improve the
quality ofHQS inspections.
Report:
Rent Comparability Study - Summary of Findings
. One significant deficiency noted in the Section 8 Department is the absence of adequate
rent comparability procedures and documentation. Some rents exceeded the comparability
restrictions set by HUD's comparability guidelines, and overpayments have been incurred.
. The MBHA faces',significant compliance issues in the area of rent comparability. The
Authority should begin to address these issues by ensuring that rent rolls are collected when
processing new tenants and whenever tenants are re-certified. These rent rolls must be
examined to ensure that comparability guidelines are met. The HUD field office and the
Office of the Inspector General are aware of the study that has been conducted and the
results produced. It is recommended that additional guidance be sought from these offices,
as to the most appropiate way to reach full compliance.
.
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U.S. Department of Housing and Urban Development
Florida State Office, Southeast/Caribbean
909 SE First Avenue, Room 500
Miami, FL 33131-3028
June 22, 2000
Mr, Charles W, Burkett, IV
Chairperson
Board of Commissioners
Housing Authority of the
City of Miami Beach
801 Alton Road, Suite 2
Miami Beach, FL 33139
Dear Mr, Burkett:
An In-Depth Consolidated Management Review (CMR) of the Housing Authority of ,he City of
Miami Beach (HACMB) was completed during the month of Februarj 2000. The Revie.v was
conducted by staff from the Florida State Office, Office of Public Housing (OPH), The assessment
included a Management Operations Review, a Financial Controis Review, a Maintenance
Operations Review, a Public Housing Ocoupancy Audit anc a Section 8 Management Re'/Iew
The major purposes of the CMR are to ensure that the HAC~IB is fumishing deoent. safe
and sanitary housing to lower income families: carrying out statutorj, regulatcr; and contractual
obligations; properly managing Federal funds without waste or fraud: and adhering :0 pregram
requirements implementing civil rights laws,
In addition to the CMR a Public Housing Management Assessment Program (Pi-'MP.P)
comfirmatory Review was performed. The purpose of the PHMAP Comfirmatcr; Review was to
assess the management performance of tr,e HACMB by verifying data certified by the HACM8 and
the accuracy of data derived from HUD files for the fiscal year ending "ere 30,1999.
Based on the Confirmatory Review the HACMB's total weighted PHMAP score for tr,e
assessment of its fiscai year ending June 30, 1999, is 87,5 percent. A total weighted PhvlA? score
of less than 90 percent but not less than 60 percent shall be designated' as a standard performer,
As a result of its total weighted PHMAP score, the HACMB was recognized as a stardard
performer, A scoring report is attached to explain the score fer each Indicator (and each
Component within the Indicator, if applicable) and the total PHMAP score based on the weighted
average of the PHMAP Indicator scores, As you know PHMAP is no Icnger used to measere the
performance of public housing authorities. Beginnin9 with the HACMB's Fiscal Year Ending (FYE)
June 30,1999, the Department assessed the Authority under the Departrlent's new Pubiic Hcusing
Assessment System (PHAS), Previously issued scores were considered advisori. Once 'he ='-ijO.,S
is fully implemented, the HACMB will be fcrmally assessed under this sJs;em, If ;he i-'AC\18 Talis ,0
adequately address public housing program Findings identified in this Reoort, it will be considered
an "at risk" Housing Authority under PHAS and senctions may be impose::.
The HACMB shall be required to submit an Improvement Plan (iP\ to correo; the ceficiency
for the following Indicator if the deficiency has not already been correctec:,
Indicator
Grade
Indicator 5, Annual Inspection of Units and Systems F
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The CMR resulted in a total of thirty (30) Findings, A Finding is a deficiency that represents
a violation of statutory or regulatory requirements, for which sanctions or other corrective actions are
authorized and which, therefore, necessitates immediate remedial action, A summar; of the number
of Findings is as follows:
Function
Number of FindinGS
Management Operations Review
Financiai Controls Review
Maintenance Operations Review
Public Housing Occupancy Audit
Section 8 Management Review
2
2
2
10
14
In addition, there are ten (10) Observations with Recommendations discuss ad in this Report.
An Observation may be a general comment, or may be a deficiency in program performance, which
does not result in a vioiation of a statutory or regulator; requirement, but which could, if not
addressed, result later in a Finding,
The primary purposes of this Report are to furnish the HACMB with a copy of the Findings
that resulted from the assessment and to provide Corrective Actions for improvement. Part I -
Introduction, is intended to provide a general overview of the type and scope of the assessment.
Part II refiects the results of the Management Operations Review, Financial Controls Review,
Maintenance Operations Review, Public Housing Occupancy Audit and Section 8 Management
Review, Part III refiects Observations, Part VI contains the results of the PHMAP Confirmatory
Review,
The Findings, Observations and other deficiencies cited in this report were discussed at a
close-out meeting with you, the former Executive Director, the Interim Executive Director and
HACMB key staff on February 18, 2000,
In addition to the response to the failed PHMAP Indicator (Indicator #5 - Improvement Plan)
noted above, the HACMB must send a written response to this Office, within thirty (30) days
identifying deficiencies that have been addressed since the date of the Review and its plans for
addressing any outstanding deficiencies that are identified in the Report.
Based on the Review, the HACMB would have failed the Section Eight Management
Assessment Program (SEMAP) evaluation and be designated a troubled PHA if the SEMAP had
been fully implemented at the time of the Review, The HACMB's overall performance of the
administrative duties mandated under the Section 8 program requirements was evaluated to be
EXTREMELY POOR (see Section 8 Management Review), In fact, the Findings from the Review
are serious enough for the Department to declare the HACMB in breach of its obligations under the
Section 8 Annual Contributions Contract (ACC) and remove administration of the program from the
control of the HACMB, The Department does not intend to exercise this righI under the ACC at this
time, However, effective immediately, the HACMB is hereby advised that it will be under a
probationary status for a period of one-year from the date of this letter, As a condition of this status,
the HACMB must enter into a third party agreement/contract with a well performing Housing
Authority, organization or firm for the administration of its Section 8 programs, If the HACMB fails to
improve its administration of the program within the one-year probationar; period, HUD will
reconsider its options,
The Section 8 Certificate and Voucher programs must be operated in a manner that
provides for the well being of assisted tenants including rents that are not excessive priced and units
that are safe, decent and sanitar;, We look fOrNard to the resolution of all of the identified
deficiencies and offer our assistance.
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This Office acknowledges that in the last few years there have been several changes in the
management of the HACMB, However, because of the sericusness of the deficiencies refiected in
the enclosed reports we are requesting that the entire Board teke an active part in resolving the
noted deficiencies, It is the Board of Commissioners responsibility to ensure resolution of ail
Findings and deficiencies contained in tr,is Report.
Lastly, the attached Report may contain information such as names, unit numbers and
addresses of residents that may be of a personal and conficential nature thet should not be re'/eeled
except in the course of official business,
This Office would like to thank the HACrv1B's staff for the cooperation and coul1esies
extended to the HUD Review Team during the course of the Review.
Should you have any questions or comments regarding this Report, please contact Phil
Aldridge, Division Director, at (305) 536-4443, extension 2291, or you may contact me at extension
2275,
Very sincerely yours,
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Karen Cato- Turner
Director
Office of Public Housing
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Enclosures
cc: Ail Members of the HACMB Board of Commissioners
Rolando Barrios, Interim Executive Director, HACMB
Jose Cintron, State Coordinator, Florida State Office
Ferdinand Juluke, Director, Multifamily Housing, Jacksonville Area Office
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5
HOUSING AUTHORITY OF THE CITY OF MIAMI BEACH
IN-DEPTH CONSOLIDATED MANAGEMENT REVIEW
PART 1: INTRODUCTION
An assessment of the Housing Authority of the City of Miami Beach (HACMB) was cOn"cieted
on February 3, 2000, by staff from the Florida State Office, Office of Public Housing (OPH), The
assessment consisted of an analysis and an examination of the HAC~18's ooerations throucn an In-
Depth Consolidated Management Review (CMR) which covered 'management.. general
maintenance and occupancy operations of the HAC~IB,
The major objectives of an assessment such as this are to ensure that a PHA is providing
decent. safe and sanitary housing to lower income families: carr;ing out s;atutor;, regulator; and
contractual obligations; properly managing Federal funds without waste or fraud; and adhenng to
program requirements implementing civil rights laws,
The HACMB ownS and manages one site which consists of 200 conventional public housing
units (housing elderly tenants), Also, the HACMB administers approximately 2116 Section 8
Certificates, 256 Section 8 Vouchers and 131 Section 8 Moderate Rehabilitation units, Additionally,
the HACMB owns and manages a 200 unit Section 8 New Construction project, a 16 unit building
housing mostly Seotion 8 tenants and the HA is the Contract Administrator for three Section 8
Substantial Rehabilitation projects with approximately 194 units, This Review does not include the
Section 8 New Construction nor the Section 8 Substantial Rehabilitation projects, Those programs
are under the jurisdiction of HUD's Office of Multifamily Housing,
In monitoring the HACMB's performance, the OPH also identified technical assistance
needs of the HACMB and provided assistance where possible, Technical assistance was provided
to HACMB staff in the following areas:
(1) Proper methods for determining rent reasonableness,
(2) Recommendations on improving and maintaining tenant fries,
(3) Recommendations for improving occupancy standards,
(4) Proper method for calculating the Housing Choice Voucher ret'lt formula
under the Section 8 Merger Rule,
(5) Technical assistance was given to the Accounting Department and the
Section 8 Departments on the entry of correct project data into the new
computer system.
(6) Technical assistance was given to the HACMB to help it utilize its Section 8
annual funding more efficiently, This included instructions on the use of the
reconciled HAP register to determine whether edditional funds are available
for leasing additional units, The Review Team furnished worksheets that
give future funding and lease-up scenarios based upon current funding data
and inflation factors,
Each Finding is discussed in detail within Part II of this Repcrt, A Finding is a ceficiency that
represents a violation of statutor; or regulator; requiremems, for which sanctions or other corrective
actions are authorized, and which, therefore, necessitates Immediate remedial action, Obser/atlcns
are discussed in Part III of this Report, An Obser/ation may be a general comment. or may be a
deficiency in program performance, which does not result in a violation of a statutor; or regulatcr;
requirement, but which could, if not addressed, result leter in a Finding.
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The Review Team acknowledges that in the last few years tr,ere have been several changes
in the management of the HACMB. However, it is the Board of Commissioners responsibility to
ensure resolution of all Findings and deficiencies contained in this Report.
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HOUSING AUTHORITY OF THE CITY OF MIAMI BEACH
IN-DEPTH CONSOLIDATED MANAGEMENT REVIEW
PART II: MANAGEMENT OPERATIONS REVIEW
FINANCIAL CONTROLS REVIEW
MAINTENANCE OPERATIONS REVIEW
PUBLIC HOUSING OCCUPANCY AUDIT
SECTION 8 MANAGMENT REVIEW
The deficiencies that follow were found during the assessment and require corrective
actions. These deficiencies are deviations from various Federal regulations, Handbooks, the
Consolidated Annual Contribution Contract (CACC) and other requirements as indicated.
A. MANAGEMENT OPERATIONS REVIEW
FindinQ # 1: The HACMB Incorrectly Certified To Several PHMAP
Indicators and Did Not Have Adequate Records To Support
Data For Other Indicators.
The HACMB incorrectly certified or did not have adequate records to support the data
submitted for the following PHMAP Indicators;
(1) Indicator #1: Vacancy Rate and Unit Turnaround
For Component #1, the HACMB certified that the total number of actual vacancy days was
991, The HUD Review Team verified and confirmed that the correct total number of actual
vacancy days was 963, When calculating vacancy days, in some instances, the HACMB
had miscalculated the total number of vacancy days by including the actual day that the
tenant moved out.
Based on the HACMB's Certification, its actual vacancy rate and its adjusted vacancy rate
were the same, 1,38 percent. However, based on data confirmed by the Review Team, the
Actual Vacancy Rate and the adjusted vacancy rate were 1,32 percent. Since both
percentages were less than 3 percent, the grade of "A" was confirmed.
For Component #2, the HACMB certified that it had an adequatg system to track unit tum
around time, The Review Team found that the HACMB did not have a tracking system in
place to determine the unit turnaround time, Since the HACMB received a grade of 'A" for
Component #1, vacancy rate, the HA,CMB was not scored for this Component.
Consequently, this situation would not have resulted in a change in the grade,
(2) Indicator #3: Rents Uncollected
The HACMB certified that it had no dweiling rent owed by residents in possession at the
beginning of the assessed fiscal year (FY), carried forward from the previous FY: dwelling
rents billed during the FY being assessed was $428,080: and dwelling rents collected during
the FY being assessed was $428,080, Based on the reported data, the percentage of
dwelling rents uncollected was 0,0 percent of total dwelling rents to be collected,
The Review Team's confirmation of Indicator #3 included the verification of rent registers,
the general ledger, financial statements, the TAR reports and the HACMB's working papers,
In addition, these numbers were discussed with key members of the HACMB's staff, Based
on the assessment, the Review Team confirmed that the dwelling rent owed by residents in
possession at the beginning of the assessed fiscal year, carried forward from the previous
FY was $0: dwelling rents billed during the FY being assessed were $429,915: and dwelling
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rents collected during the FY being assessed were 5428,226, The amounts cf ,:;weliing rent
billed during the FY being assessed certified by the HAC);IB were incorrectly stated. Based
an the confirmed data, the correct percentage of dwelling rents uncollected was 0,39 cercem
of total dwelling rents to be collected and the 'NPBI-A received a ccnfirmed grade of "A."
The discrepancy had no effect on the overall Grade for the indicator,
(3) Indicator #4: Work Orders
Under Component #2, a PHA is entitled to receive a grade of "A" if all non-emergenc, work
orders are completed within an average of 25 calencar days, The HACMB certifiec that it
had a total of 961 non-emergency work orders and that the total number of calencar days
that it took to complete them was 1300, This averages to 1,35 days for the HAC);IB to
complete non-emergency work orders,
However, the Review Team found that the HACMB had a total of 1221 non-emergenc, work
orders and that the total number of calendar days that it took to complete them was 1300,
This averages to 1,06 days for the HACMB to complete non-emergency work orders, The
discrepancy had no effect on the overall Grade for the Indicator and a Grade of ",:',' was
confirmed,
(4) Indicator #5: Annuallnsoection of Units and Svstems
For Component #1, the HA,CMB certified that it had inspected 100 percent of its un,:s; that
133 of its 200 units, which it inspected, met local ccdes or HQS: and it completed all repairs
on units where necessary for local code or HQS comeliance during the inspection, issued
work orders for the repairs, or referred the deficiencies to the current year's or the fcllowing
year's modernization program.
The Review Team confirmed the grade of an 'OF" based on the following:
The inspection form utilized by the HACMB for unit inspections is not
equivalent to HUD's Housing Quality (HQS) Inspection form, The
inspection form used by the HACMB only identified general repairs, It did
not designate whether the repairs are HQS violations, life threatening or
non-HQS deficiencies, The present inspection form is limited to only 3
lines for each unit the HACMB inspects.
The HACMB could not show evidence that HQS inspections had been
performed on all units, and
On the units which it inspected, the HACMB could not provide evidence
that repairs had been completed during the inspections, work orders were
issued or that the repairs were referred to modernization,
For Component #2, the HACMB certified that it had inspected 100 percent of its bUilcings
and sites, according to its ,vlaintenance Plan, Also, the hACMB certified that its inspec:ions
included performing the required maintenance on structures and systems,
The Review Team found that the HACMB did not have a written Maintenance Plan :cr Its
FYE June 30, 1999. Additionally, the HACMB could not provide the Review Team with any
documentation showing that an annual inspection of systems had been performed,
Consequently, the Review Team confirmed a grade of "F."
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(5) Indicator #6: Financial Manaqement
A PHA is entitled to receive a Grade of "A" if it has cash reser/es a'/allable fcr operations
which are greater than or equal to 15 percent cf tetai actual routine ~x~encitur-=s ~r the ?~A
has cash reser/es of 33 million or more.
The HACMB certified that its cash reserves were 3624,176, The Re'/iew Tea~ foune :~at
this amount was actually the operating reser/e enoing balaroe, The cash reser/es reccrted
for PHMAP should have been adjusted for short-term accounts receivable and payaele.
Based on the HACMB's books and records, the Re'/iew Teem computed the cash rese"/e
figure for PHMAP purposes to be 3143,212, The routine exeene:iture figure was foune: :c be
$775,178, Consequently, the cash reser/es were 18,5 percent IS143,2'2 e:ivie:ec: 'oy
$775,178), Based on the results of the Review, the HACf'vIB's books and records. operer:ng
reserves were 18,5 percent which resultee: in a grae:e of ",;, , The effect of the error cic ~ct
change the overall Grade for this Indicator,
However, the Review Team has serious concerns about the emounts shown cr, the
HACMB's low income Public Housing books and records, The cash reser/e amc~nt
included inter-fund acoounts receivable and payable amounts ~f 3'..15.351 arc 323.3:-'
respectively, The acoounts payable amount was a plugged figure to balance wit,: the
Balance Sheet. In addition, the Accounts Payable Revolving LJan amount showec a
balance of $456,098,39, ,;Iso, approximately S251 ,465 in amounts payable tc three c:her
funds were written off during the year,
While reviewing the worksheets utilized by the HACMB to reconcile the revolving loan, it
appeared to the Review Team that the cash accounts for the HACMB's funds were
reconciled but the offsetting entries for the inter-fund and revolving loan acoounts were not,
thus distorting these general ledger accounts, The issue of using a plugged number to
balance the balance sheet indicates serious acoounting problems which are exacerbatec 'oy
the fact that the HACMB does not have a self-balancing set of accounts for each of its
program fund groups,
It appears that the HACMB is subsidizing its low income Public Housing operations frem
other sources, This may indicate that this program is not ooerating efficiently, To ens~re
future financial solvency, the low income Public Housing program should operate on its cwn
Corrective Actions Required for Indicators Number 1, 3, 4. 5 and 6.
Federal Regulations at 24 CFR Section 901,100(b)(2\, rec:uired PCiAs to malr,:air
documentation for three years verifying all certified Indicators fcr riUD on-site review. In
addition, the Executive Director and the Chairperson certlfiee that the information reporrec is
true and accurate,
The Regulations at 24 CFR Secticn 901.1 GC(J)(5) s:,:::ec as :CI:C'}.S:
"A PCiA that cannot provide justifying documentation tc HUD :unng tr,e ccrduct:: "
Confirmator; Review. or other verification review(s), for any ir.dicawr(s) or
Component(s), certified to, shall receive a failing grade in that Indicator(s) or
Component(s), and its overall PHMAP score shall be lowered.'
The HACf'v1B must maintain complete and accurate books and recores to support thec;:;:a
submitted to HUD. While the June 30, 1999, PHMAP gr;:;de is the last ~nder PCif'vIAP 're
HACMB is now required to submit a certification fcr the new P~blic Housing Assessccent
System (PHAS). The failure to maintain and submit correct data may result In the HAC,\tB
receiving incorrect PHAS grades. The H)l.,C"-IB must provlce trairlrg to its emolcyees ard
install ae:equate systems to collect and repcrt correct c~ata to riUD,
,.
10
The actions required to correct these deficiencies are set out in the PHMAP Confirmatory
Review Report which is attached as Part IV. For brevity, the corrective actions were not
repeated in this document.
Findino # 2: Certain Services Were Not Properly Procured,
The HACMB improperly procured certain professional services, The Review Team
examined documentation for a sample of the HACMB's procurement actions for the follcwing
services: auditing, consulting and other professional services to determine whether these ser/ices
were obtained competitively and in compliance with HUD requirements,
Regulations at 24 CFR Section 85,36 (c) provide that all "procurement transactions will be
conducted in a manner providing full and open competition, Also, in accordance with 24 CFR
Section 85,36(d)(3) procurement by competitive proposals is the method to be used when
conditions are not appropriate for the use of sealed bids, Paragraph 4-18, HUD Handbook 7460,8
REV-1, Procurement Handbook for Public Housing Agencies and Indian Housing Authorities, states
that "Professional services_ are generally not appropriate for the sealed bidding methcd, but
should be handled using competitive proposals _,"
The Review Team identified the following weaknesses in the procurement of the ser/ices
identified below:
Computer Software
In March of 1999, the HACMB issued an RFP for Accounting and Program Software
(Software), The HACMB selected a vendor as the most responsive bidder for the new software
package, The initial bid was for approximately $149,000, The price was adjusted upward to
$160,000 to include an amendment for the property account for the New Construction project,
Rebecca Towers North,
The HACMB selectec a lis. of the three most responsive bidders. However, the reasons for
the selection of the vendors for this list was not apparent. At least one other possible responsive bid
was found that did not make the list. The Review Team found that t:-No bids for $35,000 and
$70,800 were submitted. The vendor that bid $35,000 was selected as number one of the three
most responsive and the other vendor was selected as number three of the most responsive
bidders,
,.
The vendors on the most responsive bidders list were rated based on the selection criteria
outlined in the RFP, The selection committee included the Operations and Administrative Officers.
Both reviewers on the selection committee gave very low totals and Component scores to t:-No of the
three bidders. One bidder received a total of 0 points from one member of the selection committee
and only 13 out of a total of 130 points from another member, In addition, the other bidder also
received very low point totals, The winning proposal received over 100 points from each membe'.
The reasons for the great disparity in the scores were not apparent to the Review Team.
Although the selection criteria in the RFP offered mucn detail, no notes, other than the actual scores
were found to support the selection, The t:-No non-winning
bidders received zero points for the "Cost Effectiveness" factor when one bid was over $100,000
less than the winning bid. One factor contributing to the great difference in cost was the fact thar the
HACMB had already purchased a General Ledger and Accounts Payable module from the low
bidder, and therefore, these modules were not part of their bid. Because these were responsive
bidders and this was not an Architectural or Engineering procurement, Regulations at 24 CFR
Section 85,36(d)(3)(v) require the cost of the proposal to be considered as a selection factor. "rice
was evidently not considered,
1 1
,
Legal Services
Subsequent to the completion of the Field Office Review, HUD's Office of Insoectcr Generel
called to our attention a situation invoivlng the solicitetion end selec:ion of tr,ree legal serllces
vendors, The HACMB advertisec for legel sen/lces, Three venccrs res;:cncec by sencing
proposals for different types of legal services, The HACMB proposeC that contracts be awarced to
all three vendors The solicitation was non-competitive sinca contracts were being awarcec to each
vendor who responded to the solic:tation, Since the solicitation was non competitl'/e, thiS Offica
decided to perform a pre-award review In accordance with Regulations at 24 CF? Section
85,36(d)(4)(iii), This Office directed the HACMB to not execute any of the three ccntracts, unless
and until, a pre award review had been performed and written apcroval was receivec from this
Office, The HACMB's Board of Commissioners passed resclutions aocrovlng awards to two cf the
three vendors, By a letter dated May 24, 2000, this Office advisee the HACMB that no Federal
funds could be used to finance the services provided under the contract awerds
The immediate need for these seNices did not appear to be an urgent matter anc It was the
understanding of this Office that the two firms were already representing the HACMB under previous
arrangements, Also, the HAC~1B's present General Counsel, Is not expected to leave his pcsltion
until September 1, 2000. This Office re'/Iewed the material subrr,iI:ed by the HAC,\18 and was
unable to approve the award of any of these three contracts,
The advertisement published In the "Miami Daily Business Review" cid not fully advise
prospective vendors of the seNlces solicited, The edvertisament statec that the :HAC\IB'is seeking
litigation and occasional general legal services," The advertisement should have been mcre explicit
as to the types of seNlces required, Additionally, Request for Proposals No, 4-2000 (RFP) is
equally vague, Section I of the RFP mereiy provides for "legal seNices Including litigation in state
and federal court." Section IV of the RFP provided that "The seNlces to be providec shall require
the firm to: Represent the Agency in all actions brought in state or federal court involving the
Authority, Provide legal seNices to the Housing Authority as recuested by the Commissioners,
Executive Director and General Counsel." The Fee Proposai Page provides for fees for "General
Legal SeNices" and "General Litigation Ser/ices." It should be noted, however, that the ,~rcposed
contracts with the three vendors give a much more explicit statement of the ser/ices to be
performed,
The advertisement published in the "Miami Daily Business Review" appeared to be unduly
restrictive, The advertisement required that "Applicants must have performed seNlces for
governmental sectors, including housing authority experience for at .~east 20 years, or have
substantial litigation experience representing the disabled or elderly regarding housing Issues,"
Section II of the Request for Proposals No, 4-2000 is even mere restnctive, It requires the ser/ices
to have been "continuous," The rec;uirement for 20 years of continuous experience representing
governmental sectors appears to be very restrictive and may unccly restrict other,'/Ise qualified
vendors, Regulations at 24 CFR Section 85.36(c) provide that "All prccurement transacticns will be
conducted In a manner providing full and open competition consistent ','/ith the stancards cf Section
85.36, Some of the situations considered to be restrictive of competition include but are "ct limitee
to:" "(Ii) Requinng unnecessar/ exserience _." Addlticnally, the alternative provision recuiring
advocacy experience In representing the disabled or elderly appears :c be irrelevent. The HAC,\tIB
may be currently or In the future required to defend against these types of actions, Consequently,
experience In defending against these cases may be e relevant factor. Additionally, while senior
members of the three firms submitting proposels apparently met the experience requirements, other
members of the firms that are proposed to perform legal work apparently did not.
In a major market such as Miami with many thousands cf lawyers, It is believec that
adequate solicitation would have produced more then one proposel for each type of legal service,
Regulations at 24 CFR Section 85,36(d)(3)(1) provice that "Reeuest for proccsals Will be
publicized and identify all evaluaticn factors and their relative importance, "Section VII of the
R,cP does not Icentlfy any evaluation factors or their relative importance.
12
The Proposal submitted by one vendor does not appear to be reseonsive. "7"he P,ceosal
does not "Give the lecation of the office from which work is to be perfcrmed.' Additionaily. the =ee
Proposal does not address "Expenses such as pre-approved tra'lel, and incidentals and other :csts
associated with performing services,"
Also, the Proposal submitted by another vendor does not appear to be respcnsive, The
Proposal does not address the Insurance Requirement. Additionally, the Fee Proposal dces not
address "Expenses such as pre-approved travel, and incidentals and other ccsts asscciated 'Nith
performing services,"
Based on information reported in the Proposals submitted by the three Rrms, each
represents the City of North Miami. It is the understanding of this Office that the HAC,'vIB's Geneml
Counsel is the City Attorney for the City of North Miami. Therefore, to avoid an appearanoe of
conflict the HACMB's Contracting Officer should conduct any new solicitations for legal ser/ices,
When the non-competitive proposal method of prccurement is used Regulation at 2~ CFR
Section 85(d)(4)(ii) provide a "Cost analysis, i,e" verifying the proposed cost data, the projecticns of
the data, and the evaluation of the specific elements of costs and profits, is required," The material
received from the HACMB did not contain a cost analysis.
Subsequent to a meeting between staff from this Office and HACMB Officials, the HAC~,IB is
in the process of re-advertising for these legal services, Based on bur review of the advertise!':',ent
in the June 18, 2000, edition of the Miami Herald we have concerns regarding the sccpe cfNork.
The advertisement in our opinion is very general and does not advise prospective vendors of the
types of litigation and other legal services needed, The advertisement is for "litigation and
occasional general legal services," As we understand the prior proposed contracts, the ser/ices
were Labor Law and other specific areas,
Audit Services
Prior to June 30, 1999, the HACMB had utilized the same Independent Auditor (!PA) for
several years. Engagement letters were executed annually for the audit services, There was no
solicitation from other qualified vendors, As indicated above, all procurement actions are required
by the Regulations to be competitively procured,
For its June 30, 1999 audit the HACMB did competitively procu.,e its audit services, The
Review Team found that the HACMB had followed proper procedures for securing the June 30,
1999, audit and that the file contained appropriate documentation suPPOr:in9 the Request for
Proposals (RFP) and solicitation in compliance with 24 CFR Secticn 85,36,
The HACMB prepared and advertised an RFP for supplemental audit services in AuguSl of
1999, The advertisement was run in a local newspaper. Additionally, a direct solicitation was
apparently sent to one vendor, Only one acceptable proposal was received by the HACMB. This
proposal was from the vendor which was directly solicited, This vendor's original propcsal was for
$138,000 which was negotiated down to about $98,000, Since only one proposal was receives, ,r,e
non competitive proposal method at 24 CFR Section 85,36(d)(4) applies to this situmion, The
Review Team has concerns regarding the advertising media, It believes that additional advertising
in a media targeted to the industry would likely have produced more proposals and, therefore, 'Nould
have made this RFP competitive,
Consultant
The Review Team found a one page RfP for a fixed-price proposel for the faoilitation ,~f a
goal setting workshop, The only evidenca whicr, was found of the aotuai soiicitetion was a procosal
by one vendor (Vendor A) and several invoices from anothe, vendor (Ven'jcr 3) totaling more :~,an
$30,000, In addition, a contract for this ~jpe of service was located with a fixed price of $8,3~O,
However, the contract was signed and dated Maroh 22, 1999, but the in'/oices were pale prior to
13
1999. The one page RFP denoted September 01 1998 as the target date, Many of the invoices for
Vendor B were for consulting serJices, however, the ac:ual delivered prcduct could net always be
determined as the invoices did not have appropriate detail, nor did they agree with the fixec-Grice
contract.
Air Conditioning Units
Please refer to Finding Number 5, which found Imprcoer procuremec,t of air conditicning
units under the Comprehensive Improvement ,""ssistance Program (ClAP),
Corrective Action Required:
All of the HACMB's procurement acticns must be in compliance with the Regulations at 24
CFR Section 85,36 and its own procurement policy and procedures, Addilional, guidanca may be
obtained by referring to HUO Handbook 7460,8 REV-1, Prccurement Handbcok for Public Hc~sing
Agencies and Indian Housing Authorities, This Handbock provides a great deal of informaticn on
properly handling procurement actions,
The HACMB must obtain copies cf 2J. CF" Section 8536 and HL;O :-'andbook 7J.60.8 ='::V-
1. The HACivtB's Contracting Officer and other appropriate staff mUSl read them and become
familiar with their contents, Additionally, as soon as possitle, the HACivl6 m~st send its Contrac:ing
Officer and other appropriate staff to procurement training,
In compliance with regulations at 24 CFR Section 85,36(b)(9), the HACMB must maintain
records that adequately detail the significant history of a procurement. These records must indude,
but are not necessarily limited to the following: rationale lor tr,e method 01 orocuremem, selecticn of
contract type, contractor selection or rejection and the basis for the contract price, Contract or crice
analysis must be performed for all procurement actions as required by Regulations et 24 CFR
Section 85,36(1),
The HACMB should maintain records for all contracts which cleerly cutline the services and
goods purchased, Invoices must clearly relete to the terms of the ccntracts end be in sufficient
detail to determine reasonableness of cost.
B. FINANCIAL CONTROLS REVIEW
As a part of the Re'/iew, the Review Team conducted en examinition to determine whether
the HACMB's financial controis met the requirements of 24 CFR Section 85,20, Standards for
Financial ivlanagement Systems, The Re'/Iew Team reviewed the following documents and intemal
controls: the general ledger; the trial balance and subsidiery backup analyses: bank statements and
deposits records; record keeping; records 01 collateral, including third party custodial agreements;
internal controls, including segregation 01 duties and collection procedures fcr cash end accounts
receivable: procurement of services; budget and year-end statement reviews fer the low income
Public Housing progrem and the Section 8 Certificate end Voucher programs: allocaticns 01 ccsts;
Section 8 rents and file reviews for HAP Ceterminations and financ'al dccumentation; and
Performance Funding System procedures and reviews. The P,eview Team examined the HACMB's
financial statements end procedures for tr,e Section 8 program, Tr,e Team compared a sample 01
Housing Assistance Payments (HAP) amounts with the most recent HAP regis;er. No discrepar.cies
were found,
The Review Team has serious concerns regarding a depletion cf :he HACivlB's Sectien 8
administrative fee reserves, The Bank statements and financial records ir.dicate that the Section 8
administrative fee reserves dedined by more ,han 52 million doilars from ,",,~gust 1997 to June 1999,
The Review Team conducted an anaiysis to determine the cause of tr,e declining reserves, 'ee
Team found that the current HACivlB administrative salaries sharged to the Section 8 prcgram
exceed the current administrative fees earned, This is partiaily caused by the hiring 01 additional
i4
personnel. Also, it may be largely the result of the lack of a procer cest allccaticn met~cc as
discussed in Finding number 3 below. At the current rate of expencirure, the admiristrat:'/s 'ee
reserves will be depleted in a few years,
While reviewing Acoounts Payabie, the Re'Jiew Team fcund thaI the i-",.lCe.IBs oay'rg fcr
several grants, special prcgrams and expense items from the acmimstra:ive fee reser/es, Sc~e cf
these expenses are shawn below:
(1) The HACMB has paid a total of about S935,569,72 for the [anc designated fer the site cf
a Single Parent Resource Center,
(2) The HACMB contracts with the City through annual Inter-local Agreemerts, The an-,cur,t
of the latest contract was in excess of 5200,000,
(3) The HACMB pays for insurance ard maintenance in'Jol\T.g the JOKeeO of ss'/srai
vacant lots owned by the HACMB. This includes the 17'" Street acouisi!icn fcrNnicr. it
also has paid large costs for architectural fees, although these costs accear tcca'/e
been paid mainly from Section 8 New Construction funds,
(4) The costs of several lots owned by the HAC~IB ha'/e, a, least aarliaiiy. !::een '~ndec frcm
the Section 8 administrative fee reser/e. This includes payment in Septem!::er 1998 for
a cashier's check in the amount of 8199,473,23 for the 3" Strse, site scouisition.
(5) The HACMB has approved five grants to Not-for-Profits in the amcunt of S3G,CCC sach,
It is questionable as to whether the HACMB oan document thaI the grants were pro'Jiced
for housing related purposes,
(6) The HACMB has made payment of questicnable se'/eranoe ar,d unemaioyn-en: :sce;1ts
to a farmer employee, who was dischargec and, afterNards, paid aporoximareiy S8C,CCO
far these benefits. Circumstances surrounding this pay~em are questicnabie,
(7) The HACMB provides funding far a rental supplement program (RS;:O;, it is our
understanding that is a program administered by the City of rvliami Beach,
(8) The HACMB pays far a Family Self Sufficiency program (FSS),
(9) The HACMB has miscellaneous expenses including a bus tCKen
program which cast as much as 8500 a month,
The Review Team found no formal budgets and cast controls far the FSS, ,RSP or the
vacant lots, including the 17'" Street land targeted far the Single Parent Rescurce Center The
HACMB was carrying the Single Parent Resource Center on its Section 3 books for S935,56~,72,
The books showed a reoeivable in the amount of 8334,589,59 due from the Sec:ion 3 ~jew
Construction program. However, at the time of the Review, the reimburseinent had not taken ,aiace,
In the past, the Acoounting Department prepared the Section 8 budgets, However, the
HACMB was under-leasing its Seotion 8 Certifioates and Vouchers and therefore rct utilizi~g its
authorized funding efficiently Beoause of its failure to use the funds, HUD recaotured some of the
funding that oould have been utilized to house mare families and, in turn, creete adcirional
administrative fees. The reasons for the under-leasing appeared to be the lack of commurica;ic~
between the Aooounting and Seotion 8 Departments and a general ncisunderstandi~g of ;cew '0
maximize the utilization of Section 8 funds, This wes compounded by the fact tt',at :he '-,.1," regis:er
did not tie-back to the accounting reoords in the computer sys:em, Onoe imclen-encee, the -ew
oomputer system will have an integration between the Section 8 HAP and accounting moouies,
Findinq #3 The HACMB's Accounting and Internal Control Procedures Are Not
Adequate to Safeguard Federal Funds.
At the time of the Review, the HACMB was ourrently in the precess of installing its ~ew
Memory Lane oomputer accounting and program software package, However, ,n2 irs:ai[at'o~ ~ad
not yet been oompleted,
,~
15
For the HACMB's Fiscal Year Ended (FYE) June 30, 1999, the Review Team examined a
sample ot deposits and other cash transactions, oasn and general ledger aocounts, iMal :alances,
reoord keeping and collateral for funds on deoosit. Ti1e following weaknesses were founo:
The Accounting System and Internal Controls Need Improvement
The acoounting system utilized by the hACc/IS did not group eaoh fund into sesarate selt-
balanoing cost oenters in the general ledger, Inter-fund balanoes in the general ledger had not teen
reoonoiled, This created a problem with interpreting the finandal statements, For example, the Low
Inoome Balance Sheet presented to hUD for June 30, 1999, Inoluded an inter-fund payaole jalanoe
that was a "plugged" amount used to balanoe the debits and credits within that fund, however, it
appeared, through a review of the aooountant's worksheets, that the revolving fund operating cash
aooount was reconoiled timely,
The Review Team has serious concerns about the amounts shown on the h,.l.,C\IS's low
inoome Publio Housing books and records, The cash reserve amount included inter-func accounts
reoeivable and payable amounts of $146,851 and 5238,511, respeotively, The Finanoe Director at
the time indicated that the aooounts payable amount was a plugged figure to balance the Salenoe
Sheet. In addition, the Acoounts Payable Revolving Loan amount showed a :aianoe of
$456,098,39, Also, approximately $251,465 in amo~nts payable to three other funds were written
off during the year, While reviewing the worksheets utilized by the HACMB to reconcile the
revolving loan, it appeared to the Review Team that the cash accounts for the HACMB's :~nds were
reconciled but the offsetting entries for the inter-fund and revolving loan accounts were ~et. thus
distorting these general ledger accounts, Ihe issue ot using a plugged number to calance the
balance sheet indicates serious accounting problems whioh are exacerbated by the fact thet the
HACMB did not have a self-balancing set of acoounts for each of its program fund groups,
Regulations at 24 CFR Seotion 85,20 (b )(2) provide that "Grantees and subgrantees must
maintains records which adequately identify the source and application of funds provieed for
financially assisted activities, These records must oontain information pertaining to grant or
subgrant awards and authorizations, obligations, unocligated balances, assets, liabilitles~ cutlays or
expenditures, and inoome."
Regulations at 24 CFR Seotion 85,20(b)(3) provide that "Effeotive oontrol and aocountability
must be maintained for all grant and subgrant cash, real and personal property, and Olh,er assets,
Grantee and subgrantees must adequately safeguard all suoh property and must ass~re that it is
used solely for authorized purposes,'"
General Ledger Accounts Were Not Consistently Maintained
Some ot the general ledger aocounts were not consistently maintained, For exan1ole, during
the analysis of Accounts Payable registers, several exoenses were found trat '.vere crage: cirest!y
against the operating reserve andlor sundry aooounts that should have teen charged :c a::ropr:a:e
expense aooounts,
The HACMB's Accounting Records Were Not Current
Trial Balanoes, cash reoonoiliation and General Ledger postings were se'Jerai menths
behind, Posting from subsidiary cash reoeipts and eisbursement leegers to the general ledger
should be oompleted monthly, However, the Review Team could looate a fuil set ef reccr:1s only
through the FYE June 30, 1999, The HACMB had recently implemented a new compu:er software
paokage, The oonversion prooess including establishing proper balances within the sys:en1's new
ohart of aocounts appears to be the main reason for the incomplete reoords, A conmcLt'ng :actor
was the reoent termination of the Finance Direotor, Also, the HAC NIB was utilizing :emporari
employees to enter baianoes and perform reoonoiliations The aocounting staff did not accear tc
have suffioient training on the new system and their responsibilities were not cleany eefkec,
'-
16
Budget Controls
A system of cost encumbrances ar,c :~dget controls were not always utilized, T~e Review
Team found several expenditures within a se:arate fune: chat were nCI b~dge(ed. This inciudec
payments for the FSS, RSP and lhe '!acarlcts, The HACNIB was carrying the Single Parent
Resource Center (Center) in its Section 3 ;;cccunts, Nics: oi the Centers costs had been directly
charged against the Section a adminls,r;;::'. e fee reser/e, Also, exoenditures relating tc the
development and upkeeo of the '\llichigan ,~.e.,ue lot. the Jefferson Street iot and the Third street
site acquisition had been charged cirectly tc :ta Secticn a administrative fee account. In addition, a
complete Section a Budget for HUD was -C' develooed since only Ihe ",UD estimate cf total
required contributions was used, A stend;;': :udget is completed for the Low Ir,come prcgram,
however, cost control measures were nct_::iized for this or any bueget. A proper cest Central
Method includes a system to determine enc~c.orances ;;gainst budget iine items and an adequaIe
system for distributing direct and indireet CCStS to the various funes. The HAC NIB hae:: not
developed a proper cost allocation pi;;n 'cr indirect costs, Without a praper ane:: consistem
allocation of expenses to appropriate cos, :eccers, it is nct possible to properly bueget ;;nd track
oosts within funds,
Regulations at 24 CFR Section as.2C (b)(4) provide that "Actual exoenditures or outlays
must be compared with budgeted amounts ':r each grant or subgrant. Financl;;i inform;;tion must
be related to performance or productivity C;;t;;, including the development of unit cost informaticn
whenever appropriate or specifically require: To :he grant or subgrant agreement. "
The HACMB Has Not Established a Written Cost Allocation Plan
A consistent method for allocating ineirect costs was not being usee::, Also, a written Cost
Allooation plan had not been estabiished as required by Office of Management and Budget (OMB)
Circular A-a7, revised May 4, 1995, further amended August 29, 1997,
The HACMB did not have a formal c:st allocation plan for allocating indirect costs to the
proper funds, Also, in praotice, indirect sa;;;-'2S and costs were not being fainy ailocated to the
appropriate cost centers, In addition, a bre;;kcown performed by a Consultant employed by the
HACMB disclosed that oertain direct OOStS, s~c~ as direot benefits, may have been also improper:y
olassified. This indicated a need for a struc:'_ce,j system for coding eireci costs as well as indiree:
costs,
Whiie reviewing Acoounts Payable, :~e Review Team noted that several costs that affeot
Rebeooa Towers North and Rebecca Towers South such as indirect m;;intenance ch;;rges were:
usually equally distributed between the rNo ccc;ects, Since they are of equal size, thiS ineicates that
some consistency for the coding of charges :0 :r,e various cost centers,
More recently the HACMB has startee :.'1e implementation of a simpie ",ethcd of:harging
indirect salaries and costs using an alloca::cr l1ethod based upon direc: salaries, A Ccns~lt;;nl
helped develop this allocation pian ,hat is 2 :2": of a ~ew agency-wice bucge:, T'1e new buoge'
utilizes the allocation plan on a department ar ::Jrojec~ basis. However, the conversion of baiar.cas
for the current software and new set of aCCCLr:s was not complete. Ccnsec;uently, a new general
ledger had not been completed, The Re',e','; team found no app;;rent ineication, that the new
allocation method was currently being praoery ~Ii[ized for ac:ual expentitures
The HACMB Obtained Full Administrative Fees for Owned units.
The HACrvlB owns a 16 unit aparcr:e-: buiieinc located at 211 Collins Avenue, Fifteen
Section 8 tenants who are assisted by the "',:'::,v1B live Tn the 211 Collins ,;1,venue facilirj, Feeerai
law at 42 USCA Section 1437f(g)(E) provioes :nat "The Secretary l1ay e::ecraasa the fee for units
owned by a public housing agenc,! to re,'e:: reasonable costs of administration. ",UD h;;d
determined that PHAs that rent their ownee _rits to Section a tenants are emitled to a reoucec
..
17
administrative fee of 3 percent. The Review Team found no indication that the HACiltlB used the
reduced administrative fees,
Corrective Action ReQuired:
The first step the HACMS must take in properly implement bucget controls is to develop a
written cost allocation plan and develop appropriate coeing within the parameters of the new
accounting system, This is imperative for proper budget!ng, the impiementation of cost controls,
encumbrances for each department and/or fund group. The current methodology for using direct
payroll costs may be adequate inter-departmentally, however, the HACivlB must adopt a multioie
allocation base method to properly allocate costs for the various feeerally funded projects,
Complete budgets must be developed for all federally funded projects, A tentati'le current
entity-wide budget with departmental cost centers and funded projects has been established,
Building upon this budget. the HACMS must implement the new budget with the proper controls and
cost allocations in the accounting records and the new software,
At the time the Review Team completed its Review the Finance Directors position was
vacant. However, it is understood that this position has now been filled. The HAG.'AB should
expeditiously fill all other vacant accounting positions, if any, with qualified permanent employees,
While it is sometimes necessary to use temporary personnel, the HACMB should hire a competent
fully trained professional accounting staff, The accounting staff should be immediately thoroughly
trained on the new software, A new set of Standard Operating Procedures (SOP) should be
developed for accounting anc management staff to follow. These steps should help the HACMB
develop a complete set of reconciled and up to cate records after ell relevant Information is entered
into the accounting system.
The HACMS must properiy show Its owned units In Column C of the calculation of
administrative fees so that excessive Section 8 acministrative fees will not be collected, I ne
HACMS must adjust Its acministrative fee calculation for the prior three years and reimburse the
government for all overpayments for Its owned units.
FindinQ #4: Excessive Salaries.
Based on a Report of a wage and benefit comparability study performed by Parilla &
Assooiates (Parilla) Issued In June 1999, salaries paid by the HACMB for some employees are
excessive, Parilla surveyed the salaries and benefits of the City of COral Gables and PHAs In
Miami-Dade, Sroward and Palm Beach Counties, Parilla also obtained data In a private sector
survey of South Florida salaries and benefits, Not all positions were Inciuded In both sur/eys,
Parllla concluded that of the HACMB's 47 employees the salaries of twenty-five employees
exceeded the maximums of their salary ranges,
OMB Circular A-87 Revised rvlay 4, 1995, as further amendee p.,ugust 28, 1997, establishes
principles and standards for determining whether COStS are eiigible under Federal awards,
Attachment A to OMB Circular A-87 requires that costs must be necessary and reasonable for
proper and efficient performance and administration of Federal awarcs, itam 11(b) of Attachment 8
to OMS Circular A-S7, provides that "",compensation will be considerad reasonable to the extent
that It Is comparable to that paid for similar work in the labor market in wt',ich the employing
government competes for the kind of employees involved,"
Corrective action required:
Salaries and benefits that exceed comparabie comoensation ~ald for similar work in the
labor market in which the HACIV1B competes are not eligible to be paid from Federal grants, The
HACMS must determine the salaries and benefits that are excessive and reimburse the HUD
programs from non Federal awards. Excessive salaries paie in the future by the HACrvlB may not
be paid from Federal awards,
1 8
C. MAINTENANCE OPERATIONS REVIEW
Findino # 5: The HACMB Has Not Developed Operating Procedures for
Performing Annual Unit and System Inspections,
Presently, operating procedures have not been develcpec for the perfcr~ance of anr~ei ~nit
and system inspections, Regulations at 24 CFR Sec:icn 902,30 require PHAs :0 report anr~aliv as
a part of the PHAS on Management Indicator ;;:5 - ,"YA Annuai inspection of Units and Sys:ems,
The HACMB has not developed as a part of the system inspections, a pre'/entive maintenance
program, The method by which a PHAs performance .viii be evalualed has changed beginning .vith
PHA's with fiscal years ending September 30, 1999, :his change includes a onange in the cr;teha
for unit inspections, In prior years, PHA's certified thaI ~ousing I~nits were inscected in acccrcance
with local code and/or Housing Ouali~1 Standards (whichever ;s more stringent), Beginnirg wltr,
PHA's with fiscal years ending September 30, 1999, all housing units should be inspec:ec in
accordance with the Uniform Physical Standards (UPS), At of ire time of tre"'e'Jiew, :he C',.o.C,\16
had not developed inspection procedures or an inscection format that meet :r,e UPS inscec:ion
criteria, Also, the HACrv16 could not provide ccc~mentaticn that evider,ces that Sys:ems
Inspections were being performed in accordance with an approved preventive maintenance c,an,
The HACMB's Public Housing Assessment System (FC'lI,S) certification wiil be due in Augusl2SCO,
Corrective Action Reouired:
The HACMB must develop policies, procedures, systems and inspec:icn forms will", cr':er!a
that is consistent with the requirements of PHAS,
Findino #6: The HACMB's Contract Administration of ClAP No, FL29P017904.97
Is Not in Compliance With 24 CFR 85.36.
The Review Team examined the HACMB's Contract Administration File for ClAP program
No. FL29P017904-97 and could not find a contract fcr tr,e purchase of the thru wall air conditicring
units, While the contract file stipulated the air conditicning units were purchased under an ex's:ing
contract with TransWorld, Inc., the HACMB could nct produce a contract with TransWcrld Inc, In
addition, the HACMB could not provide evidence of bid documents or the type of solicitation Tcr :he
purchase of the air conditioning units,
Regulations at 24 CFR Section 85,36(b)(9) provides that grantees will maintain reccrds
sufficient to detail the significant history of a procurement. These records will include, but are ,1Ct
necessarily limited to the following: rational for the method of procurement, selection of cor,:rac:
type, contractor selection or rejecticn, and the basis fcr the contract price,
Since no contract or bid documents apparently exist. the procurement of :he air ccndilicring
units is not in compliance with the federal procurement cegulations.
Corrective Action Reouired:
The HACMB must establish procedures rcr contract and file adrrdnistra:icn fcc all
procurements, Also, the Procurement Officer should ,cerform quarterly reviews cf lhe contrac: ~:es
to assure that acceptable and well-documented crocuremem ac:ivities ::eing perfcrmec cy
designated staff,
Other Results of the Maintenance Operations Review
1. Public Housina Unit Inspections
The Review Team performed HOS inspections en a sample of 10 low Income public hc~s,rg
units at Rebecca Towers South, Five (5) units passed the inscections, ",,'10 (2) units ::;assed
w/ccmment ard three (3) units failed, Examples of :...,as violaticrs in the '~ni:s chat failed ;nc:~cec
19
inoperative smoke detectors and inoperative bathroom exr,aust fans, Detailed results :f the unit
inspections are shown in Appendix Number 1,
Corrective Action Reauired
The HACMB shouid implement actions that will help it maintain its low inc:me public
housing stock in an excellent condition so it can attain a high rating under the new PCi,.lS. ,.l, new
inspection sheet must be developed which conforms to the Uniform Physical Standarcs fUPS) for
the inspeotion of publio housing units whioh HUD's Reai Estate Assessment Center (RE,;,C) has
established, Then the HAC"IB shouid inspeot the units in Rebeo:a Towers South usir,g th,e new
inspeotion sheet. Any deficiencies should be corrected, These steps will help ensure that the
HACMB obtains high scores in future physical inspections by the REAC contractors, anc :herefore,
high scores overall in the new PHAS,
failing,
The HACMB must immediately correct the deficiencies in the units listed in this '<eport as
2. Section 8 Unit Insoections
The Review Team inspected a sample of 27 Section 8 units, including (23) existing units and
four (4) moderate rehabilitation units, Of the 27 units inspected, two (2) units, 7% per:ent of the
total, passed the HQS inspections; ten (10) units, 37% of the total, passed with comments: anc the
remaining fifteen (15) units failed the inspection, This constitutes 56 % of the total number:f units
inspected,
The high peroentage of units failing the HOS inspections may be a reflection :f the high
inventory of units that the HACMB has in its program, the lack of systems for notifying landlords
about unit deficiencies in a prompt and reliable manner and the laok of communications bert/een the
Section 8 Inspection Department and the Section 8 Management Department. This lack cf
communication may interfere with the notification, follow-up and implementation of Housing
Assistance Payments (HAP) abatements in the case of non-compiiance by iandlorcs, A,:so, tre
HACMB has an insufficient number of inspectors, especially when consicering the additicnal task of
inspecting the 200 public housing units that are being contemplated by the HACMB's management.
There are also some landlords in this program who have been identified as offering
substandard housing for the tenants of the Section 8 program at the HACMB, Detaiied resuits of the
unit inspections are shown in Appendix Number 2.
Corrective Action Reauired
The HACMB must address the lack of an efficient landlord notification system where prompt
correotions of deficiencies found during unit inspections are ensured. Furthermore, tr,e HACMB
must establish excellent communioations channels between the Inspection Department and the
Section 8 Ivlanagement Department so that it can enforce landlord compiiarce with HQS s,accarcs
by means or promptly abating HAP payrr.ents. The HACi'vlB needs more inspec:ors becar.;se cr ~re
large numoer of units in the Section 8 program, movement of families who need larger Jnics
westward to Miami and the additional workload created by uncertaking the inspectior, duties of
Rebecca Towers South, When additional inspectors are addeo, the "AC,vIB shoulc :cnsider
inspecting the Section 8 units twice a year, especially units owned by landlords whose units cave a
large number of HOS failures,
These required aotions, once implemented, will help the HACMB maintain a high percentage
of Section 8 units in excellent condition and improve its Section Eight Ivlanagemenr Assassment
Score (SEMAP), when implemented, Based on the Review, this Office expects the HA,C~IB to fail
the SEMAP score, when implemented, and become a troubled PHA.
"
2CJ
Extensive follow-up must be done with the landlords whose properties recresent sui::-
standard housing, If the necessary repairs are net done timely, the HAC~IB must ai::ate the
payment of rental assistance. Additionally, the HACMB must notify all owners of the units lis;ec as
failing in this report of the HQS violations noted, ard raouire them to take Immedla,e cor:-eo:ive
actions, As required, re-inspections of these units must be performed by the HACi',IB to ensure
compliance, This Office is available for assistance If needed,
D. PUBLIC HOUSING OCCUPANCY AUDIT
The Public Housing Occupancy Audit was completed as a part of an In-Depth Consciicated
Management assessment of the HACMB, The deficiencies that foliow were foune during the
assessment and require corrective actions, These deficiencies are eeviations from various r=ederai
Regulations, Handbook, the Consolidated Annual Ccntribution Contract (CACCI, HUD Haret:coks
and other requirements as indicated,
All occupancy functions were reviewed. The Review included examina,ions of apciicants'
fiies, tenant selection and assignment practices, computation of rents, annuai ane 'r,terim
reexamination practices and the HACMB's Dwelling Laase, A total of fifteen (15) low-income "'ut:lic
Housing residents' files were audited,
Based on information in a June 17, 2000, letter from the Interim Executive Director the
HACMB has begun corrective actions on some of the Findings in this Section,
Findinq #7: The HACMB Has Not Maintained an Admissions and Continued
Occupancy Policy (ACOP).
The HACMB is not in compliance with 24 Code of Feeeral Regulations (CFR) Part 960,
Admission to and Occupancy of Public Housing, which prescribe standards and criteria for tenam
selection and assignment, establishes a preference for elderly families and disabled families fcr
admissions to mixed population public housing projects and plans for exemption from eligibility
requirements for police officers and other security personnel. The HAC~IB does not have an A,COP,
In addition, the Quality Housing and Work Responsibility Act of 1998 (QHWRA) mace
significant changes to the low income Public Housing Prcgram. The HA,CMB is not in compliance
with the new changes.
Corrective Action Required:
Within 60 days, the HACMB must develop, implement and maintain an ACOP to reflect tr,e
current requirements, inciuding changes required by tr,e QHWRA. Please note that all federai
preferences were permanently repeaied in the QHWRA. After, implementation of the ACOP, the
HACMB must comply with its ACOP and all federal reguiations that govern the law-income Public
Housing program.
Findinq #8: The HACMB Does Not Have a Tenant Selection and Assignment
Policy and an Acceptable Waiting List.
Regulations at 24 CFR Section 960.204 require PHAs to establish and adopt written pclicies
for admission of residents, The HACMB could not document that selections and assignments are
made in accordance with a Board adopted Tenant Selection and Assignment Plan (iSA.?),
According to its staff, the HAC,\1B stopped using Federal preferences months ago ard has
established local preferences, However, the staff coule not produce a copy of the TSAP,
Additionally, the HACMB does not maintain an acceptable waiting list. The Tenam'Lease
Coordinator works from index files, Based on the HACMB's index cards, it appears that appiicants
are selected by date: alphabetically, and Federal preferences in that order, Once the appiicants
with a Federal preference are offered units then ncn-rederal preference applicants for that cate are
',.
21
offered units, Please note that all Federal preferences were permanently repealed in October 1998
by the QHWRA. They had been suspended for several years before that.
Corrective Action ReQuired:
Within 60 days, the HACfV1B must prepare and maintain an acceptable waiting list prioritized
by date and time of application and Board adopted local preferences, if any. Also within 60 ,jays,
the HACfV1B must adopt a written TSAP, Usually the TSAP is a part of the ACOP referred to above.
As indicated the ACOP must reflect recent changes in the QHWRA. Any changes in the TSAP
relating to local preferences and number of offers must be approved by HUD's Office FH&EO pricr
to it becoming effective, After, revision, the HACfV1B must comply with its ACOP and all Federal
reguiations that govem the low-income Public Housing program.
FindinQ #9: The HACMB Is Currently Using an Outdated Lease.
The HACMB was currently using an outdated lease, The lease was outdated and was not in
conformance with the requirements at 24 CFR Section 966.4,
Corrective Action ReQuired:
The HACfV1B's dwelling lease must be structured with, and be in conformance with, its
Admissions and Continued Occupancy Policy, when adopted: the Lease procecures outlined in 24
CFR Section 966.4: the Grievance Procedure set out at 24 CFR Section 966, S~boart B: anc state
law,
Findina #10: Tenant Files Are Incomplete.
A total of 15 Public Housing files were reviewed, The new admission files were all missing
the lease signed by the tenant and HACMB. The older files have a copy of the original lease but do
not have annual lease addendum. Rent generally has been calculated correctly and form HUD
50058s are prepared within the allowed time frames,
The Supervisor does not perform quality control reviews on the HACfII1B's low income public
housing tenant files
Corrective Action ReQuired
The HACMB must certify that leases and annual addendum's are included in all tenant files,
Immediate action upon receipt of this report is required,
For future actions, a sample of tenant files should undergo a quality control review or
examination, The HACMB should establish written procedures requiring quality control reviews of
tenant files, describing the procedures to be used and assigning responsibilities for accomplishing
the quality control reviews,
FindinQ #11: Federal Preferences Were Not Confirmed.
The HACMB did not obtain information on which it could make a determination as to
whether an applicant was entitled to a preference, Based on the files which the Review Team
audited, applicants were given Federal preferences, even though there was no proof in the files of
the verification of the Federal preferences, As noted above all Federal preferences were
permanently repealed in October 1998 by the QHWRA. They had been susoended for several
years before that. However, some PHAs have adopted the former Federal preferences as Iccal
preferences.
22
Corrective Action Required:
The HACMB must adequately document its tenant files to snow that It has 'tenfIed thaI
applicants are entitled to a Iccal preference and the ~Jpe cf preference(s; to wnlch the apciicam 's
entitled, If the HACMB wishes to continue using the former Federal Preferences, its 3carc must
adopt a formal Resolution after notice and a public hearing,
Findinq #12 The HACMB Did Not Have a One-Strike Policy,
Effective March 28, 1996, the Hcuslng Opportuni~J Extension ,~ct of ,996 required :::::HAs tc
develop occupancy standards that allow the PHAs to terminate tenancy or assistance fcr the whcle
household that includes a person involved in the proscribed activi~J, Regulaticns at 24 CFR Secticn
960,205(b) provide that a PHA is responsible for screening tenants for cnmlr,al actlvi~J :1",81 wculd
adversely affect the health, safety or welfare of other tenants, The eiAC,\,IB has no: Ce'ieloped
standards to terminate assistance or that prohibit admission of any hcusahclc with a rT'emcer wnc
(1) the PHA has determined has engaged in illegal crug use; or (2) the ,:leiA. r,as reascnacie cause
to believe is engaging in illegal crug use or alcohol abuse that in:en'ere 'Nlth :he health. safer: cr
right to peacefUl enjoyment of other residents of the developments.
Corrective Action Required:
The HACMB must develop standards for lease enforcement and adrT'ission In accordance
with the Housing Opportunll'f Extension Act of 1996 and 24 CFR Section 960,2G5(b),
Findinq #13 The HACMB is Not Admitting Disabled/Non Elderly Into Its low-
Income Public Housing Development.
Based on a discussion with the Tenant Selection Coordinator II is her understanding that
only elderly/elderly disabled are to be housed at the low-income public housing development. It is
the understanding of the HACMB's staff that this community is considered designated elderly. For
this development to be designated elderly or elderly/disabled, the HAC,'vIB must first fellow the
requirements established in 24 CFR Part 945, The HACMB must develop an allocation plan and
receive HUD approval for the designation,
Corrective Action Required:
Until the PHA receives approval of an allocation plan the HACiv18 must admit disacled and
non-elderly families into this development.
Findina #14 The HACMS Has Failed to Set a Schedule for Annual
Re-certifications
At the time of the Review, the HACMB was requiring its tenan~s in ~he icw incorT,e puctic
housing program to contact the Building Manager for their annual re-car:iflca{ion, Tre ,-,AG.'vIB
posted a note on each tenant's deor notifying them that it was time fer :~elr ~2-.:er::iflcatjcr. 3/ '::lr~
this, the HACMB placed this respcnsibiiity upon the tenant to ensure the re-certlflcmion :s ccmcietec
annually. Regulations at 24 CF? Section 960.209(a) require PHA,s tc -e-examine tr,e inccme ace
composition of all tenant families at least once every 12 months,
Corrective Action Required:
The HACMB must develop a system for scheduling re-certlflcalicns to assure that tenants
are reexamined at least annually, The tenants must be given an ccccrtuni~J to reschecule, if the
HACrv1B's scheduled re-certification date conflicts with their schedule, eiowever, the tenants snoulc
be advised tenancy may be terminated if the HACrvlB is not permitted :c complete its reexamlnalicn
by the anniversary date of the lease.
"
23
Findinq #15: The HACMB Has Failed to Update Its Utility Allowance Schedule.
The utility allowance schedule currently being used by the HAC"IB was lest revisec and
updated in 1996, Pursuent to Regulations at 2d CFR Section 965,507, the HACMB r:-:ust reView its
schedule of utility allowences each year, and must rS'/ise its allowance for a utility category if there
has been a change of 10 percent or more in tr,e utilir; rate since the last time the utilir; allowance
schedule was revised.
Corrective Action Required
The HACMB must immediately review its schedule of utiiity allowances anc "evise them if
needed, Also, the HACMB must maintain information supporting its annual review of utiiity
allowances and any re'lisions made in its utili~; allowance schedule, Apprcoriate adjustments and
reimbursements must be made to current and past residents.
Findinq #16: Utility Allowances Are Improperly Handled.
At the time of the Review, the HACMB was directly billed by FPL for electhca[ usage for
each public housing unit. The utility allowance is applied to the FPL b[1I and the tenant is billed fer
the remaining balance If the utility allowance is greater than the actual FPL biil. nc refund is ;i'/en
to the tenant.
HACMB officials advised that it is in the process of changing its computer system, When the
change is completed, the tenants will be required to put their FPL bill in their own name, Once this
is done, the utility allowance will be deducted from their rent. The HACMB plans to utilize revised
utility allowance rates effectively with the start of the new system,
Also, all units in Rebecca Towers include television cable service, All tenants are required
to pay $4 per month for cable regardless whether they use cable or not. This fee is included in their
rent.
Corrective Action Required
The HACMB must refund to tenants any excess of utility allowances over the actual F?L
billing, The HACMB must cease charging tenants for television cable service when the tenant cces
not receive the service.
E. SECTION 8 MANAGEMENT REVIEW
The Section 8 Management Review was completed as part of an In-Depth Consolidated
Management Review of the HACMB. The deficiencies that follow were found during the
assessment and require oorreotive actions, These deficiencies are deviaticns from various Feceral
Regulations, Handbooks, the Consolidated Annual Contribution Contract (CACC), Secticn ,3
Housing Assistance Payments contracts (HAPs), HUD Handbooks and cther requiremems as
indicated, A total of thirty eight (38) Section 8 resident files were reviewed,
The HACMB is edvised that the intent of the Section 8 Review is to ensure PH;', complia~ce
with applicable Federal guidelines and regulations, In addition, the HACMB has an opportunity to
make any corrections and/or changes to its currant policies and procedures t!",at will ensure hign
scores on the Section 8 Management Assessment Pmgram (SE1v1AP) when it is implementec,
Based on the Review, if SE,vlAP were currently in effect the HACMB's Section 8 programs would :e
considered troubied,
Findinq #17: The HACMB Has Failed to Update It's Administrative Plan
Regulations at 24 CFR Section 982,54 require PHAs to adopt written acmlnistrative plans
that establish local policies for the administraticn of the Section 8 program in ac~ordance with ,,"LD
24
requirements, The HACMB's Administrative Plan has not been re'/ised since 1996, It dces nct
reflect the many significant Section 8 prcgram policy revisions required by the QHWRA ar,c: other
changes. One significant change was the permanent repeal of the Fec:erai preferences ':y the
QHWRA. Additionally, the HA,C:VIB was nct following its cesolete Administrative Plan,
Corrective Action Required:
Within 60 days, the HACMB must re'/ise its Administrative Plan to reflect the char,ges :0 the
Law and Regulations, After revision, the HACMB must comply with its .A.dministrative Plan and all
Federal R\lgulations that govern the Section 8 programs,
FindinQ #18: The HACMB Is Not Issuing Requests for Lease Approvai (Form HUD
52517) to Certificate or Voucher Holders,
Regulations at 24 CFR Section 982,302(c) requires that families submit a Request 'cr Lease
Approval, form HUD-52517 (RFLA), to the HACMB during the term of the Certificate cr 'lcucher.
When a family finds a unit. and the owner is willing to lease the unit under the program, the :amily
must submit a RFLA to the PHA for aperoval to lease the unit. At the time of the Re'/iew, the
HACMB was not providing these forms to Certificate or Voucher holders,
It appears that the HACMB's procedure is that when a family expresses an interest in renting
a unit. the Owner directly contacts the HACMB to schedule an inspection without compieting an
RFLA. This is a violation of 24 CFR Section 982,302(c), Consequently, the ciock continues to run
on the Certificate or Voucher. [f an inspector fails to inspect the unit timely, the family loses '/aiuable
time in shopping for another reasonable unit. This loss of time could result in a loss .cf housing
assistance to the applicant.
In addition. the HACMB does not track the progress of the requests such as the time it takes
to inspect the unit or if it faiis the inspecticn to re-inspect the unit.
Corrective Action Reouired:
The HACMB must fumish copies of the form for RFLA to families so they may complete
them and retum them in a timely menner in accordence with 24 CFR Section 982,302(c),
Additionally, the HACMB should develop e system to track the progress of the femily in their search
for and processing of their housing assistence, The HACMB must nct permit Certficates or
Vouchers to expire through its failure to timely process RFLAs,
FindinQ #19: The HACMB Failed to Document Rent Reasonableness in the
Proper Manner,
Regulations at 24 CFR Section 982.503(b) provides that a PHA must determine whether the
rent to owner is reasonable rent in comparison to rent for other comparable unassisted units, To
meke this determination, the PHA must consider the location, queiity, size, unit type, anc age cf the
contract unit and any amenities, housing sariices, mainterance and utilities to be prc';:c:ec :"1 the
owner in accordance with the lease. Tenant files that the Re'/iew Team examined c:rraired a
certification regarding rent reasonableness, However, the sUrJey form whlc~ was used cid nOt
collect all the necessary data needed for rent reasonableness determinations, The form "sed Cy the
HACMB does not take into consideration similar units in the unassisted market such es ur,lt size,
including number of bedrooms: bathrooms; and square feet of living space; unit type such es garden
apartment: elevator building; townhouse: or single family house; amenities, including air
ccnditioning, carpeting, dishwasher, washer/drier connection, garbage diseosal, loceticn cf unit
within the building; facilities, including avellebility of storage, parking and etc,
25
Corrective Action Required
The HACMB must ensure that an appropriate form is US ad to determine rent reasonableness
for each unit with an approved lease so that a proper companson can be mace with urits in the
private unassisted mar~et. The HACNlB must submit to this Office a certification, along Wilh a ccpy
of the sur/ey form, stating that the required factors are used in its determining of rem
reasonableness,
FindinQ #20: The HACMB Was Not Using the Rent Reasonableness Data.
The HACMB provided the Review Team with data on rent reasonableness a,~c incicated
that the data is updated annually, However, the Section 8 inspectors are not utilizing :his cata in
determining initial rents, Instead, the Owners are given the requested rents,
In addition, it does not appear that other Section 8 staff are utilizing this data for annual rent
re-determinations, since rents are in excess of the AAF or manually maintained reascnable rems
data.
Corrective Action Required:
In accordance with 24 CrR Section 982,503(a). the HACMB must begin utilizing its
reasonable rent database once it is properly determined (See Finding Number 19 above) to
determine that at all times during the assisted tenancy the rent to owners coes not exceed the
reasonable rents.
The HACMB must submit to this Office a certification that this procedure has been
implemented and all Section 8 staff, including Inspectors, have been provided instructicns on when
and how rent reasonableness is to be utilized,
FindinQ #21: The HACMB Failed to Maintain Complete Tenant Files and Rent
Calculations Are Incorrect
The Review Team selected a sample of 38 tenant files, Based on an examination of the 38
tenant files 13, or 34 percent of the tenant files, are incomplete, have incorrect rent calculations and
are missing documentation, The following deficiencies were found by the Review Team during the
file reviews: incorrect payment standards were used to calculate the housing assistance subsidy:
incorrect utility allowances were used; the file lacked third party verifications; the verification of
earnings did not state how many hours the tenant worked per week: information in the fJle was
inadequate for the computation of The contract rent and utility allowance: the owner or tenant's
spouse did not sign the lease; medical expenses were not used as a deduction: gross rents were
used in the rent calculation instead of the payment standard: the family was issued a certificate
instead of a voucher; the file did not contain a lease addendum; and the amount of income was
incorrect. Please refer to Appencix Number 3 for a description of the deficiencies b,. tenant or
address, The Regulations at 24 CF'R Section 85.42 require PHAs to retain their records
Also the Review Team found that the Super/isor did not perform quality contrei re',iews of
the HACMB's tenant files for admissions and annual re-certifications, A sample of lenant files
shouid undergo a quality control examination by the Super/isor.
Corrective Action Reauired:
The HACMB must certify that all tenant files have been reviewed and are comcleTe, have
correct rent calculations and are not missing documemation. These actions shoule be taken
immediately upon receipt of this report, While it is important for the HACMB to :orrect the
deficiencies in the flies reviewed by the Review Team, all other files must also be reviewed and all
deficiencies corrected,
,
26
To assure that the rents are calculated accurately :ond the files are complete and accurate,
the HACMB should establish written procedures covering cuality ccntrol reviews of tenant files that
describe and assign responsibilities for accomplishing quaiity contrcl exeminations on a same Ie of
its tenant flies. The Supervisor shculd then randomly condec: a quality control review of a sample cf
initial tenant files and ail re-certifications,
The possibility exis:s that some of the documents missing for pre-existing tenants may be
found in the initial file opened for the tenant; however, this 'nformation shOL:ld be readily accassible
in one file and must be transferred into the tenants' most current file,
FindinQ #22:, Improper Rent Increases Were Provided to Owners,
The HACMB is using the Fair Market Rent (FMR) instead of the Annua[ Adjustment Fac:cr
(AAF) for rent increases, The HACMB is giving FlvlR ir,creases instead of AAF adjustments to
owners without obtaining a written notification from the cwners at least 60 days prior to the
anniversary date of the HAP Contract. HUD Reguiations ar 24 CFR Section 982.509(b)(5) reouires
that the owners must request the increase at least sixty cays before the next annual anniversar;
date to receive an increase resulting from the annual adjust:'Clent. The HACi\IB is permitting owners
to request rent increases over the telephone instead of writirg a letter documenting the request.
In addition, most rent increases are in excess of the AAFs as published in the Federal
Register and/or reasonabie rents as most recently determired by the HACvlB, Ail rent increases in
excass of thesa ~NO factors must be approved by HUD :os a Spec:al ,~,cjL:stment. Hcwevar, in
accordance with 24 CFR Section 982,510, special rent increasas may be permitted, With HUD
approvai, based on substantial and general increasas in real property taxes, special governmental
assessments, utility ratas, or costs of utilities not coverad !::y regulated rates, In any case, an AAF
or Special Rent increase may not excaed re$sonable rents,
During the Review, HACMB staff inJicated that higher rents were approved by the Section 8
staff and this was an acceptable practice bV the HACMB, However, this is not consistent with the
procedures used to determine approval of r~nt increases,
Corrective Action ReQuired: I
The HACMB must review all AAF tdiusted rent increases and/or speciai adjustment rent
increases compietad during the past two 'Ie rs, The HAC~IB must prov(de this Office with a list of
all rent increases calcu[ated based on the , wners' requests and in excess of the AAF factors as
published in the Federal Register or reasonable rents as derermined by the HAC,vIB at that time,
With regard to the Section 8 Modelate Rehabilitaticn units, rent increases may not !::e in
excess of the published AAFs, unless a SJecial Rent Increase (as approved by HUD) is gramee,
Regulations at 24 CFR 882.410 states that'a special rent adjustment, to the extent determi~ed by
HUD to refiect increases in the actual and necessary exper,ses of owning an maintaining the 'Jnir
which have resulted from substantial gener$1 increases in real property ;axes assessments, Jt:iity
rates and utilities not covered by regulated rt. tes. may be rs':::mmencec JY Ihe ?HA for a;:prO,\/ai :~j
HUD, The HACMB must recalculate all aff cted rent increases using the C8rrect AAF faclors anc
reasonable rents, A letter must be sent t all affected cwners indicating ;he correct rems a~c
include provisions for repayments to the HA, MB by owners for HAP over-payments,
The HACivlB must provide this Offic with a list of tcral HAP over-payments owed to it and
verify that repayments have been made by t e Owners or a repayment S8hedule has been exec~tec
and approved.
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Findino #23: The HACMB Is Not Issuing Information Packets or Briefing Packets
to Tenants or Landlords.
The HACrvlB is not issuing information packets to appiicants at the time the Certificate or
Voucher is given, This is in violation of 24 CFR Section 982,301 (b), At the time of the Review, the
HACMB did not have an information packet on file to hand out to tenants or landlords,
In accordance with 24 CFR Section 982,301(b), when a family is selected to participate in
the Section 8 programs, a PHA must give the family a package that includes specific information,
such as, the term of the Certificate or Voucher, the PHA:s policies on extensions of the term,
tenant's rights and responsibilities, hearings, an explanation on how the housing assistance
payment is determined, and other information that will assist the applicant in the move-in process,
It is also a good practice for PHAs to develop briefing packets for landlords, The information
should oonslst of the above, including the iandlords' nghts and responsibilities,
Corrective Action Reouired:
The HACMB must develop an information paokage and include all of the material required
by the regulation at 24 CFR Section 982,301(b). A oopy of the revised information package must be
submitted to this Offioe for review,
Findino #24: The HACMB Does Not Schedule Appointments for Inspections.
At the time of the Review, the HACMB was requiring the tenants or owners to contaot the
Inspections Department to sohedule HaS inspections. By doing this, the HACrvlB places this sole
responsibility upon the tenants and owners to ensure that an HaS inspeotion is completed annually,
HUD Regulations at 24 CFR Seotions 882,516 and 982A05 require inspeotions to be made on an
annual basis,
Corrective Action Reouired:
The HACMB must immediately develop a system for scheduling HaS inspeotions prior to
the anniversary date of each HAP contract. The inspections should be soheduled for at least 60
days before the anniversary date, The tenant and owner must be given an opportunity to
reschedule, if the HACMB's scheduled inspeotion date oonflicts with their schedule, However, both
the owner and the tenant should be advised of sanotions and/or abatement, if the HACrvlB is not
permitted to conduct its HaS inspection timely or the unit does nor comply with the HaS
requirements by the HAP anniversary date.
Findino # 25: The HACMB's Waiting List Does Not Provide Adequate
Information On Bedroom Size
The HACrvlB's waiting list does not include the bedroom size needed by applioants,
Regulations at 24 CFR Section 982.204(b) requires Section 8 waiting lis;s to show the number cf
bedrooms for whioh the family qualifies, Additionally, there IS no oommunication with the Acoounting
Department to determine availability of funding by bedroom sizes, By failing to meet with its
Acoounting Department to ascertain the number of Vouohers that can be leased-up, this makes it
impossible for the HACrvlB to maximize the utilization of its Section 8 funding, This haphazard
approach to administering the program may result in an over-utilization or under-utilizaticn of
program funds.
Further, by failing to interact oonsistently with the Aocounting Department. the HA,CN!B runs
the risk of losing millions of dollars in unused funding, Also, HUD may consider recapturing this
funding,
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Corrective Action Required:
The HACMB must immediately amend its waiting list to inolude dara on bedroom sizes. and
establish communications with its Accounting Deoartment to ensure appropriete funding allocations,
Prior to issuing new Vouchers, the Section 8 staff should meet with the Accounting staff to
determine the actual number of Vouchers that can be leasee-up, This should inc~ease th,e
HAC1vlB's ability to house more families and improve the lease-up ~ate,
FindinQ #26: The HACMB Is Not Admitting Single Persons Who Are Under the
Age of 62 and Working.
At the time of the Review, the HACMB was not admitting singles under the age ci 52, The
definition of a family pursuant to Regulations at 24 CFR Section 982,201(C) (J,) includes nct only an
elderly person but any other single person,
Corrective Action Required:
Within 60 days of the date of this report, the HACMB must revise its Administrative Plan to
permit the admission of single persons under the age of 62 to its Section 8 programs,
FindinQ #27: The HACMB Was Not Abating HAPs For Housing Quality Standards
(HQS) Violations or for Failure to Comply With HAP Requirements.
The Review Team found several units that had failed the HQS inspections, but the HACivlB
failed to abate rents on the unit(s) and continued to issue checks to the owner(s), Regulations at 24
CFR Section 982.404(a)(3) states that "The HA must not make any housing assistance payments
for a dwelling unit that fails to meet the HQS, unless the owner corrects the defect within the period
specified by the HA and the HA verifies the correction, If the defect is life threatening, the owner
must correct the defect within no more than 24 hours, For other defects, the owner must correct the
defect within no more than 30 calendar days (or any HA-approved extension),"
The Review Team questioned the HACMB's Section 8 staff as to why owners checks were
still being issued if the unit(s) had failed the HQS inspections, According to the Section 8 staff, if
units do not meet HQS, are in violation of other HAP provisions or Section 8 requirements monthly
HAP checks should be held. We could not find letters in the tenant riles that supports this position,
The HACMB could not provide documentation to support plans )0 abate HAP payments,
Additionally, the HAP register did not show that checks were held for abatement.
Corrective Action Required:
Within 60 days, the HACMB must include a provision in its Administrative Plan requiring the
abatement of rental payments for units that fail HOS inspections or in other situations where Owners
are in breach of the HAP agreement. Additionally, within 60 days the HACMB must implement this
provision and certify to this office that it has done so
FindinQ #28: The HACMB Informs Applicants That They Cannot Rent Units
Where the Monthly Rental Amount Exceeds the Payment Standard.
The Review Team learned during the Review that the HACMB's staff was advising Section 8
Voucher holders that they could not pay more rent than the HACMB's payment standard, The
HACMB's payment standards are 100 percent (100%) of the Fair Market Rents (FMRs), A
participant may pay more rent than the payment standard, The amcunt of subsiey is based on the
payment standard not the actual amount of rent paid, However, Regulations at 24 CFR Section
982.508 provide that at the time the PHA approves a tenancy for initial occupancy of a dwelling unit
by a family with tenant-based assistance under the program, the family share must not exceed .lG
percent of the family's adjusted monthly income,
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Corrective Action Reauired:
Immediately, the HACMB's staff must cease telling Section 8 \/ouc,-,er holders that they
cannot rent units which are pricec: in excess of the ~aymem stanc:ards The HA.C~IB must advise all
participants that they can rent a unit for more than the payment standard ane: ,1ew participants that
they are not permitted to pay mere than 40 percent of their adjusted monthly income.
Findina #29: The HACMB's Utility Allowance Schedule Is Not Current.
The HACMB's Utility Allowance schedule was originally prepared by a consultant in July of
1996, However, the utility allowance schedule has not been revised and updated since 1996. In
accordance with 24 CFR Section 982,517(c), PHAs are required to review tr,eir schedule of utility
allowances each year and must revise an allowance for a utility categorj ;f there has been a change
of 10 percent or more in the utiiity rate since the last time the Utili<y Allowance scheduie was
revised,
Corrective Action Reauired:
The HACMB must review the existing Utilitj Allowances schee:ule and make changes, if
necessary, based on actual utility costs by family sizes and localities, The HACivlB must maintain
information supporting its annual reviews of Utility Allowances and any revisions made in its Utility
Allowance schedule. Separate files should be maintainee: and should include all supporting
documentation utilized for utility analysis and updates of the Utility Allowances for each subsequent
year. Also, the HACMB must begin using the updetee: ane: revised Utility ,~.Ilowance schedules,
Findina #30: The HACMB's Section 8 Supervisor, Inspections Supervisor and
Staff Have Not Administered the Section 8 Program in Accordance
with Section 8 Regulations and Requirements.
The Section 8 Supervisor has the primary responsibility for the administration of the
program, The Incumbent, at the time of the Review, possessee: a general understanding of most of
the program requirements, but failed to effectively communicate the requirements and objectives to
the program staff. This also includes the Inspections Supervisor. During the Review, the Review
Team reported that it provided an inordinate amount of technical assistance to the Section 8 staff,
Although the former Executive Director indicated that supervisors and staff hae: attended numerous
training sessions and seminars apparently additional staff training is necessary for improved
capability and to effectively and properly administer the Section 8 Celtificate and Voucher and
Housing Choice Voucher programs in accorc:ance with HUD Regulations,
Corrective Action Reauired:
The HACMB must immediately procure the services of a third party to administer its Section
8 Programs and provide formalized training for Section 8 program staff, This training sheule: provie:e
the staff with a better understanding of the Section 8 programs ane: their reGuirements, including
recent changes like QHWRA, the Section 8 Certificate and Voucher ~erger, Sa/lAP and eec,
The HACMB must give to its staff instructions on Section 8 policies and prccedures,
including when and how rent reasonableness is to be utilized, HUD is in the process of instituting its
Section Eight Management Assessment Program (SEMAP), The Sectien 8 staff and management
must become knowledgeable of SEMAP and its implementation,
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HOUSING AUTHORITY OF THE CITY OF MIAMI BEACH
IN-DEPTH CONSOLIDATED MANAGEMENT REVIEW
PART III, REVIEW OBSERVATIONS
An Observation may be a general comment. cr may oe a ceflciency in arcgram
performance, which dces not result in a violation of a statutcr; or res~latorj rec;~iremem, cut whic~
could, if not addressed, result later in a Finding,
Observation #1: The HACMB Has Incurred Costs in Excess of $935.569,72 for
a Single Parent Resource Center Which Apparently Will Not Be
Built.
The HACMB has paid about $935,569,72 from its Section 8 administrative fee :eserves
for the acquisition of land :0 build a Single Parent Resource Center '-Canter} "Nhich i,,: accar-=nl~'(
is unable or unwilling to build. Additional costS incurred since the land purchase inc:uce, re-
building of a sea wall, architectural and engineering costs, maintenance, insurance ana 'Juilding
and land use permits and etc, Also, we understand that the HACMB may have used accitlcnal
funds obtained from refinancins Rebecca Towers North, a Section 8 New Construction craiec:,
which is under the jurisdiction of HUD's Office of Multifamily Housing. We uncerstand that :he
HACMB planned to combine the Section 8 administrative fee reserves, with the oroceeds cf :r,e 'e-
financing of Rebecca Towers North, hOME funds and bank loans to construct the Center.
Planning for the Center began about 5 years ago under a former Executive Director, It now
appears that the Center will not be developed, Officials of the City of Miami Beach havencicated to
this Office that a part of the land may be needed for the re-construction of a bridse, We understand
that temporarily the land is being rented for use as a parking lot. Regulations at 24 CF'" Section
982.155(b)(1) and the Consolidated Annual Contributions Contract I::erween the HACMB and HUD
permit the use of excess administrative fee reserves for "housing purposes" if permitted by state and
local law, If constructed, the Center would provide housing for low income Single Parents and
would apparently be permitted under the HUD Regulations, However If not constructed. the funds
would not be used for housing purposed and therefore be improperly used, Temporar; use of the
site for a parking lot during the time plans are being developing or permits are being ol::tained may
be good management. However, long term use of the site for parking purposes is net e .:ermitted
use of Seetion 8 administrative fee reserves,
Recommendation:
The HACMB should make a determination as to whether it is going forNard with the
development of the Center, If so, it should expedite the development. This Office has supcorred the
development of the Center, and will continue to do so if adequate funding is available, If tr,e
decision is not to complete :r,e Center, the HAC~[B m~st decide if it ean use the site for scme ather
permitted housing purpose. If not. the HACNiB should Immediately take steps to reco'lsr all :he
funding used for the Center and reimburse the various Federal funds, If the C:r;, Counc; :r Stats
seeks to use a portion of the land for the bridse re-constr'Jctlon, adequate comoensation muse 'Je
obtained for the land taken, One of the options the HACI'vIB should consider is sellins the site if it
does not plan to complete the Center or does not have an acceptaole altema:e use 'cr housing
purposes,
Observation #2: Annual Costs of About $200,000 for an Inter Local Contract or
Agreement With the City of Miami Beach Are Questionable,
For the last several years the HACi'vIB has entered Into ccntracts or an Inter-Iecal
Agreements (agreements) With the Cir; of Miami Beach (City), Under these agreements tr,e City
agreed to furnish recreation programs: enhanced police protection: and subsidized c~ilc care for
persons receiving Section 8 heusing assistance, The amount of the latest contract was in excess cf
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$200,000, Payments for these agreements have been made from the i-L"',C:VIB's Section 8
administrative fee reseNes,
As we understand this agreement. the contract amcunt is a flat amcunt fer annual se~/ices.
The payments are not individual parcicipant fees charged to ail rasidents of :r,e Cit'j cf Miami Saach.
We understand that the payments are to permit participatlcn by famiiies assisted by Section 8
Housing Choice Vouchers, Section 8 Certificates and Section 8 Vouchers,
The Review Taam examined doo:.Jmentation supporting the payments for :hls agreement.
The Team found that supporting dooumentation was Insumc:ent to show the se~/ices ~rO'lidec, The
Team reviewed an invoice in the amount of 5163,330.15, Thera was little documentation supoorting
seNices provided for a S96,1 06 charge for recreation seNices, The Review Team oould not iccate
any documentation supporting the serJices proviced fer enhancac pOiica ~rctection costing
$63,754,15.
Housing units in the Section 8 Housing Choice 'Iou char, Section 8 Cercificate and Section 8
Voucher programs are not owned by the HACM8, They are owned by private owners who pay
property taxes the same as any other owners, The HACM8 only owns three housing projects. t'NO
of which, Rebecca Towers North and Rabecca Towers South, house exolusively elderly persons.
Since they are used to house elderly persons, there's little need for the type of sar/ices that were to
be provided under the agreement. Also, the HACM8 owns an apertment building located at 211
Collins that only contains 16 units,
This arrangement appears to be nothing more than a way for the HA,C:VIB to subsidize the
tax base of the Cit'j from the revenues of the HACMB's Section 8 programs, Attention is directed to
Section 421,09, Laws of Florida. which provice that no PHA shall operate any ~roJect for profit or as
a source of revenue to the city. We know of no reason why the Cit'j should recei'/e a subsicy from
the HACAMB for participants in the Section 8 programs, Adcitionally, this Office knows of no reason
why providing seNices to assisted families Is more expensive to the CIt'j than the provision of
seNices to families who are not assisted, Acditional costs charged for Section 8 participants in
excess of those charged to olher Citizens of the Cit'j cennot be justified,
These expenses are questionable, Regulations at 24 CFR Section 982.155(b)(1) and the
Consolidated Annual Contributions Contract bet'Neen the HACc/IB and HUD only permit the use of
excess administrative fee reseNes for "hcusing purposes" if permitted by state and local law,
Recommendation:
The HAClvlB should terminate the current agreement when legally possible, This Office
believes that this practice violates Stale Law, The HACMB must not operate its Section 8 programs
as a source of Revenue for the City, in the future, the HACMB should not enter into any similar
arrangement with the City,
Observation #3: Questionable Payments Were Made to a Discharged Employee.
The HAC1v18 made peyments from its Secticn 3 ,",cministrative Fee Reser/es of
approximately 580,000 to a former employee, who was disc,",arged and, afte~Narcs, ~aid severance
and unemployment benefits, The Review Team was unabie :0 locate a contract or policy requiring
the payments to the terminated employee after his cischarge. However, we ha'/e been toic the:
there was a written agreement between the HAC;VIB anc the terminated employee whicr, was
presumably drafted by counsel. Apparently the decision to pay severance benefits was made by the
former Executive Director before 80ard consent was obtainee. Subsequemly, the 80arc considereC
the former Executive Director's decisior. and tOOK no action, The Minutes of tr.e Board meeling
indicated that the Executive Director may have feared an age disoriminatlon lawsuit against the
HACMB,
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Recommendation:
Appropriate supporting documentation should be filed with each payment voucher, Also, if
needed, appropriate Board approvals must be obtained fer severance payments prior tc payment.
Additionally, other supporting documentation such as opinions of counsel regarding the potential
legal risks should be obtained and documented,
Observation #4: The HACMB Is Not Adequately Budgeting and Controlling
Costs Under Its Rental Supplement Program.
The HACMB operates a local Rental Supplement Program (RSP), The RSP is designed to
provide temporary rental assistance to residents of the City of Miami Beach, The HACr,lB funds this
program from its Section 8 administrative fee reserves, Tc receive assistance from this Jrogram, a
participant must be:
1) A non Section 8 or public housing resident.
2) A resident of the City of Miami Beach for 12 months or more,
3) Disabled (any age),
4) A family with children,
5) Elderly, 62 years or older,
6) Experiencing temporary loss of employment or a decrease in income.
7) Recently evicted or facing eviction.
S) Experiencing difficulties in paying utility andlor telephone bills,
The Review team could not determine how much of the HACrvlB's administrative fee
reserves had been used to date. Also, the Review Team found that expenditures for this program
had not been budgeted. A system of cost encumbrances and budget controls were not being used
for the RSP, The maximum dollar amount that a family may receive is $2,000, If the HACMB
assists 100 families, or more, during a one year period, conceivably, the HACMB could spend more
than $200,000 from its administrative fee reserves for this program. However, without estimating its
funding needs for the RSP, the HACMB may not maximize the use of its Section 8 administrative
fee reser/es, Additionally, as indicated above the Section 8 administrative fee reserves are being
depleted at a rapid rate.
In addition, the Review Team had concerns regarding the type:j of rental assistance that
were being paid for some persons. For example, the Team reviewed several RSP participant files,
and found some families that were given assistance because they could not pay their phcne bills or
utility bills. One file included a copy of a past-due phone bill thet showed extensive long distance
charges, While another file included a past due utility bill showing excessive "energy consumption"
charges, While these situations indicate an immediate financial problem, the greater problem
appears to be poor money-management skills.
Regulations at 24 CFR Section 982,155(b )(1) and the Annual contributions contact between
the HACMB and HUD permit the use of excess Section 8 administrative fee reserves fer housing
purposes if permitted by state and local law,
Recommendation:
The HACMB should establish Internal Controls and Budget Controls so that it can
adequately control the payments for the RSP and determine the aggregate amount of funds used fer
this program.
In addition. the HACMB should consider revising its program "requirements" and redefine
"rental assistance," and the types of assistance it is willing to pay. The HACMB should keeo in mind
that Section 8 administrative fee reserves may be used to provide for costs of helping families who
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experience difficulty renting appropriate housing. However, the HACMB should exercise caution
when uSing administrative fee reserves to cover costs like excessive utilities or telephone bills,
Observation #5: The HACMB Should Assure That Payments from Its
Administrative Fee Reserves Are Properly Documented and
Supported.
Few of the payments examined by the Review Team were supported by adec;uate
documentation, During a review of the grants, the Review Team noted that only Barry University
had supplied sufficient details to determine what ser/ices were periormed for the cost charged,
For the grants and Inter-local Agreement, periodic reports are submitted with invoices fcr the
ED to approve, Then they ere submitted to the Accounting Department for payment. Upon a review
of an invoice in the amount of $163,330,15 for the Inter-local Agreement there was little
documentation supporting an amount of $96,106 for Recreation ser/ices, No documentation could
be located to support an amount of $63,754,15 for enhanced police protection, No agreement could
be located to support the payments to a terminated employee after his discharge, However the
minutes of a Board meeting afterwards indicated that the Executive Director may have feared an
age discrimination lawsuit. It appeared that this decision was made without the initial consent cf the
Board or consultation with legal counsel. On the surface the Review Team questioned whether the
expense was justified,
Recommendation:
Appropriate supporting documentation should be submitted with each invoice and/or
progress report that will substantiate costs paid for the services billed,
Observation #6: Policies, Procedures and the FHEO Poster Were Not Posted.
There were no posting of scheduled charges for services, repairs and utilities, policies. rules
and regulations for the low income public housing program in the main office, This information is
required to be incorporated in the lease by reference end should be publicly posted in a
conspicuous manner in each of these offices, Additionally, the FHEO Poster was not posted,
Recommendation:
The HACMB must post the indicated FHEO poster, schedllles, policies, rules and
regulations immediately,
Observation #7: The HACMB's Staff Need Training,
On October 21, 1998, the Quality Housing and Work Responsibility Act (QHWRA) was
signed into law, This Act makes extensive amendments to the United States Housing Act of 1937,
Certain provisions of the QHWRA became effective immediately upon enactment. However, mcst
provisions became effecti'/e on October 1, 1999. P~cvisions or this ,~ct and :he Reguiations iS3:..:ec:
pursuant to it must be implemented by the HACMB,
The HAC1v1B's low income public housing staff possess a general understanding of some of
the program requirements, However, additional staff training is necessary for, improved
management oapability, and to effectively and properiy administer the program.
The Section 8 Supervisor has the primary responsibility for the administration of the
program, The incumbent, at the time of our review, possessed a general understanding of most of
the program requirements, but failed to effectively communicate the requirements and objectives to
the program staff, This elso includes the Inspecticns Super/isor, Dunng the review, the Review
Team reported that it provided an inordinate amount of technical assistance to the Section 8 staff,
Additional staff training is necessary for imcroved management capability end to effectively and
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property administer the Section 8 Certificate and Voucher and Housing Choice Voucher ~rograms in
accordance with HUD Regulations, The HACMB must give to its staff instructions on when and how
rent reasonableness is to be utilized, HUD is in the process of instituting its Secticn Eight
Management Assessment Program (SEM,A,P), The Section 8 staff and management must become
knowledgeable of SEMAP and its implementation,
The new PHAS has now been implementec, The HAOJlB must provide training to its
employees and install adequate systems to collect and report correct data to HUD.
The HACMB was utilizing temporar/ employees to enter balances and perform
reconciliations, The accounting staff did not appear to have sufficient training on the new computer
software system and their responsibilities were not clearly definec, The HACMB must provide
adequate training to its accounting employees, As pointed out in Finding Number 3, accounting
records and systems require improvement.
As shown in Finding Number 2 procurement training must be provided to the Contracting
Officer and other employees involved in procurement of goods and services,
Recommendation:
The HACMB should obtain proper OHWRA training for its staff to ensure that they are able
to comply with the current regulations and guide!ines. The HACMB should provide procurement
training to the appropriate staff members, Also, the HACMB shoulc provide formalized training for
the Supervisor and staff of its low income public housing program, This training should ,crcvide the
staff with a better understanding of the program and its requirements,
The HACMB must immediately provide formalized training for the Section 8 Supervisor,
Inspections Supervisor and the Section 8 program staff, This training should provide the staff with a
better understanding of the Section 8 programs and their requirements, including recent changes
like OHWRA, the Section 8 Certificate and Voucher merger, SEMAP and etc,
The HACMB's staff must be trained on the new PHAS, Systems must be implemented to
allow the necessary data to be collected, For the low income public housing project. its inspectors
must be trained to use the new Uniform Inspections Standards.
The Accounting staff should immediately receive thorough trainjng on the new computer
software, A new set of Standard Operating Procecures (SOP) should be developed for use by for
accounting staff and management. This should help the HACMB to enter all relevant information
into the accounting system and obtain a full set of accounting records which can be reconciled and
are up to date,
Observation #8: The HACMB May Not Be Utilizing Its Maintenance Staff
Effectively.
The HACMB was using its CT',aintenance staff as a force-acoount for cyclical paiming of units,
unit turnaround, work order repairs and installation cf air conditioning units purchased under the
C!AP program. Presently, there are nine maintenance personnel who perform work on both the
PHA owned Rebecca Towers North (A property assisted through a Housing Assistance Payments
Contrect under the Section 8 New construction program) and Rebecce Towers South (a low income
public housing project assisted through an Annual Contributions Contract), Because of the wide
array of duties the maintenance personnel perform, unit turnaround takes from 14 to 25 days tc
complete.
Recommendation:
The HACMB should evaluate the present workload for maintenance personnel as well as the
timeliness for completicn of work, The HACMB should develop a wcrk plan that ensures that
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35
maintenance personnel are being utilized in a cost effective and efficient manner that is most
advantageous to the HACMB.
Observation #9: The HACMB Has Not Established Written Operating Procedures
for Processing of Work Orders or the Operations of the
Inventory System,
The HACMB could not provide documented evidence that quality assurance was being
performed on completed work orders. Also, the HACMB could not provide documentation
evidencing that quality control of inventory supply levels was being performed.
Recommendation:
The HACMB should develop written operating procedures for the internal operations of the
maintenance department including work order procedures and the inventory system,
Observation #10: Quality Assurance of Work Order Repairs Is Not Being
Performed.
The HACMB's Maintenance Supervisor is not performing documented quality assurance
Inspections to assure that work order repairs are acceptably completed,
Recommendation:
The HACMB should develop and implement procedures that require that a samole of the
completed work orders of all maintenance personnel undergo a quality assurance inspection,
,
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.,
HOUSING AUTHORITY OF THE CITY OF MIAMI BEACH
IN-DEPTH CONSOLIDATED MANAGEMENT REVIEW
PART IV, PUBLIC HOUSING MANAGEMENT ASSESSMENT PROGRAM
The Public Housing Management Assessment pcogram (PH MAP) was created under
Section 502 of the National Affordabie Housing Act of 1990, In January 1992, HUD published an
Interim Rule for the PHMAP, a system to evaluate public housing agency (PHA) performance
nationwide, The first Interim Rule set forth 12 Indicators for measurement of management
performance in several operational areas, The second Interim Ru[e was published on December
30, 1996, with eight Indicators and 22 Components,
Beginning with the HACMB's Fiscal Year Ending (FYE) June 30, 1999, it was assessed
under the Department's new Public Housing Assessment System (PHAS), An advisory score was
issued,
Under PHMAP three levels of overall performance by PHAs were established, Based on a
PHA's overa[1 total weighted PHMAP score, the agency wi[1 be classified as either a high performer,
standard performer or a troubled performer, In addition, a PHA may be designated as
modernization-troubled (mod-troub[ed) for its management performance under management
Indicator #2, Modernization, The four leve[s of performance and the criteria for achieving those
[evels are stated below,
Hioh performer desionation: A PHA shall be designated a high performer if it
achieves a total weighted score of no less than 90 percent with no Indicator less
than a grade of "C,"
Standard desionation: A PHA shall be designated standard if it achieves a total weighted
score of less than 90 percent but not less than 60 percent.
Troubled desionation: A PHA shall be designated troubled if it achieves a total weighted
score of less than 60 percent.
Mod-troubled desionation: A PHA shall be designated mod-troubled if it achieves a
total weighted score of less than 60 percent on Indicator #2,
modernization.
This report contains the results of a final on-site PHrvlAP Confirmatory Review of the
HACMB, The reader of this report must be aware that PHMAP provided statutory and regulatory
criteria to identify PHA management capabilities and deficiencies, The PHMAP reflected only one
aspect of public housing agency operations, I.e" the results of its management performance in
specific program areas, The PHMAP or new PHAS should not be viewed by PHAs or other
interested parties as an a[l-inclusive and encompassing view of overa[1 PHA operations. When
viewing overal[ public housing agency operations other criteria and review are necessarj to
determine the adequacy of overa[1 PHA operations, These systems are not designed to be the sole
methods of viewing a PHA's overall operations, Therefore, to ful[y e'/aluate a PHA's overa[1
management performance an In-Depth Management Review must be performed, Such a review
has been performed of the HACMB, The results are stated in this Report,
The subject Confirmatory Review resulted in a confirmed PHMAP score for the HACMB's
Fisca[ Year (FY) ending June 30, 1999, Of the eight Indicators, six were applicab[e to the HACMB's
operations for fiscal year 1999. This report addresses the Indicators and provides an explanation of
the HACMB's PH MAP score for each Indicator,
The Review Team confirmed a PHMAP score of 87,5 percent for the fiscal year ended June
30, 1999, The score resulted in a standard performer designation,
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37
The information below reflects the resL:lts of the Confirmatory Review, Also, the sCGring
report. located in Appendix Number 4, shews the results with a detailec listing of the scores for
individuallncicators,
The CR was performed during the perlco from November 15 through November 24, ~ 999,
The purpose of the PHtvlA? CR was to assess the management performance of the H,"'C~IB by
verifying dam certified by tr,e HACtvlB ane the aCGuracy of data derived from HUD files for the lscal
year ending June 30, 1999. The HA,CM6's overall SCGre and Its score for an IneicaTGr or
Component may be changed subsequemly by this Office pursuant to data inc!ueeer an
independent aueitor's repor.,
The HACtvlB received a grade ofF for Indicator 5. Inspection of Units and Systems ,he
HACtvlB shall correct the deficiency within 90 days and notify the field office in writing of aotions
taken to correct the deficiency, If the deficlenoy Is not corrected within ninety (90) days of rece,:t of
the notifioation letter, the HACtvlB shall submit an improvement plan aCGeptable to this Office that
addresses the defioient Ineicator in accordance with 24 CFR Section 901,145.
The HACtvlB was also evaluated under the PHAS for its FYE June 30, 1999. Tr,e riAGvlB
received an advisory PHAS score of 82,3 percent and was eesignated e standard performer. ~he
HACMB should be aware that this is an aeViSOrj sccre, The official June 30, 1999, score wiil ':e tr,e
PHtvlAP score of 87,5 percent.
Under the Department's new PHAS, a PHA will receive grades for four Indicators: Physical
Condition, Financial Concition, Management Operations and Resident Service and Satisfaction.
The PHAS is expected to be a more objective measure of a PHA's performance than PHivlAP,
Under PHtvlAP, PHA,s received a score prlmanly basec on their self-certification, Under P;-;AS tr,e
Physical Condition Indioator will be graded from inspections performed by a contraotor engaged by
HUD, The Financial Condition will be graded from the PHA,s Financial Statements as verifiec 0'1 an
Independent Public Accountanr (IPA), The Resident Se~/ice and Satisfaction IndicatOr wiil be
graded from responses ottained directly from a sample of Tenants, The l'vlanagement Operations
Indicator will be graded from the PHA's cerEinCaiion, which is very similar to ,he PHMAP certinca,icn.
Since the HACMB's Management Operations will be graded from a certification very simiiar to
PHMAP, appropriate actions taken to correct the deficiencies identified in this Report will improve its
PHAS score.
At the time the HACMB submitted its PHMAP certification, no modification or exci~sion
requests were submitted,
INDICATOR #1, VACANCY RATE AND UNIT TURNAROUND TIME - GRADE A
This Indicator examines a PHA's vacar,cy rate, its progress in recucing vacancies, ar,c ~nit
turnaround time,
COMPONENT~,VACANCYRATE-GRADEA
Component #1, vacancy percentage measures the actual and aCjusted ',acancy i2~e :asec
on the number of eays units have :::een '/acant d~r1ng the PHAs ;isca! year comoars':.vith
the number of days the units were available for cccupancy. A PHA may choose wrelher tc
use the actual vacancy rate, the adjusted vacancy iate or a reduc:ion in the actuai \/acancy
rate within the past three years to determine the grace of this Component.
The PHA is entitled to receive a grace of "A" if it is in one of the following categcres: an
actuai vacancy rate or 3 percent or less: 8r an adjus~ed vacancy rate of 2 percent or less,
The Review Tear,"'! examined the H,~,Ci\'lB's rent register, maintenance records and c~e:atir.g
budget as sources of documentation fer this Indicator, The Review Team also assassee the
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33
adequacy of the HACMB's move-in/move-out procedures, resident fJle recercs anc
maintenance records.
The HACMB's certification indicaled that the f-CAC;\IB has imclemented an adecuate s'/s,er-
to track the duration of vacancies, ' .
The HACiv1B certified and the Review Teem cenfirmec a total number of ACC 'cays as
73,000 and that there were no adjustments to this numcer. The Review Team revlewec
supporting documentation submitted by the accounting department, which rerlected units
available and number of days occupied,
The HACMB certified to a total number of actual vacancy days of 991 and that there were ~c
adjustments to this number, Based on the Review Team's examination of the HAO/IB's
vacancy study, the correct number of actual vacancy days as of June 30, 1999, was 962.
When calculating vacancy days, in some instances, the f-CACMB had miscalculated the tCla,
number of vacancy days by including the actual day that the tenant moved out. This :esults
in an actual vacancy rate of 1,32 percent (963 divided by 73,000),
The HACMB certified that the "Percentage points reduction of actual vacancies .vilhlr, ;;as:
three years" was N/A
Since there was no reduction in percentage points of actual vacancies within ,cast :hree
years and there were no adjustments, the actual vacancy rate and the acjustec 'Iacanc~.
rates are the same, 1,32 percent. Based on the HACMB's actual vacancy rale cf 1.32
percent, the HACMB will receive a confirmed grade of "A" for this Component.
COMPONENT #2. UNIT TURNAROUND.. EXCLUDED
Component #2, unit tumarounc time, is scored only if a PHA's score for Component #1 is
below a grade of C. Implicit in the Indicator is the adequacy of the PHA's system(s) tc track
the duration of vacancies and unit turnaround, including down time, make reacy time anc
lease up time,
Since it received a grade of "A" for Component #1, vaoancy rate, the HACMB is not recuireC
to be scored for Component #2. unit turnaround. This Component was reviewed only for the
purpose of advising on performance and was not included in ..the scoring of the overa;:
Indicator. To pass this Component, a PHA must have a system to track the duration cf
vaoancies, and show an average turnaround time of no more than 50 calendar days, The
Review Team found that the HACMB did not have a tracking system in place to determine
the unit turnaround days,
Recommendation:
The HACMB must implemem a computer generated or a manual log immediatei~1 to toe:"~
unit turnaround days, This [og must include the following cata for eaoh unit:
. Unit number,
. Date unit becomes vacant.
. Reason the unit was vacated,
. Date unit was referred for repairs,
. Date unit preparation was completed, and
. Date the new lease takes effect.
Based on the weighted average, the overall grade of Indicator #1 is a grace cf
Component #1 has a weight of "2," Component #2, which was excluded, has a weight of'1
'II .,
,'"..,.
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.;
INDICATOR #2: MODERNIZATION - GRADE" A
This Indicator examines the management of funding allocated under the Comprehensive
Improvement Assistance Program (CIA.P) administered by the HACNlB. The review included the
modernization program that had activi~1 during the assessment period of culy 1,1998, through June
30, 1999,
This Indicator has five Components: unexpended funds over three Federai Fiscal years
(FFY's) old, timeiiness of fund obligation, adequacy of contract adminislration, quali~1 of physical
work and adequacy of budget controls.
A PHA is not required to certify to this Indicator on its form HUD-50072, Public Hcusing
Management Assessment Program (PH MAP) Certification, Instead, this Indicator is graded from
information in HUD's LOCCS system, various reports submitted by a PC',"" to the HUe Field Office,
and from HUD reviews of the PHA's modernization program,
COMPONENT #1. UNEXPENDED FUNDS OVER THREE FEDERAL FISCAL YEARS
iFFY'S) OLD - EXCLUDED
Under this Component, a PHA is entitled to receive a Grade of "F" if it has unexpended
funds over three FFYs old and is unable to demonstrate the existence of one of three
exceptions or a HUD approved time extension,
During the rating period, tlle HACMB had only one open ClAP grant. Number
FL29P017904-97 This grant was for FFY 1997 and was not yet tr,ree years old at the end of
the rating period, June 30, 1999, Since this grant was not yet three years old, we were
unable to grade this Component. Consequently, this Component was exciuded,
The grant was for emergency funding which required that ail funds be expended by
September 30, 1998, This Office is concemed that the funds had not been expended within
the one year time frame as required, The HACMB's ClAP Budget/Progress Reoort for the
period ending September 30, 1998, and the data in HUD's LOCCS system revealed that
only $21,579 of the $22,000 grant was expended, leaving $421 remaining unexpended,
Recommendation:
Due to the changes in HUD regulations and how ClAP funds are to be awarded in the future,
the HACMB must establish monitoring and tracking procedures to ensure future ClAP funds
are expended within regulatory time frames, A ClAP or Modernization Coordinator should
be designated to monitor and coordinate all ClAP activities from planning to ciose-out.
COMPONENT #2. TIMELINESS OF FUND OBLIGATION - GRADE- A
A PHA is entitled to receive a Grade of "A" under this Component, if it has no un-obligated
funds over two FFY's old or is able to demonstrate the existence of one 01 three exc8oticns,
Since this was for emergency funds, HACMB had one year to obligate ali funes, Time
frames for obligation commenced on September 30,1997, and all funds had to be obligated
by September 30,1998,
The grade for this Component was supported by data in HUD's LOCCS system that showed
that all funds have been obligated in accordance with the HACMB's Imolernentatlon
Schedule, Consequently, a grade of "A" was confirmed for this Component.
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'1
COMPONENT #3. ADEQUACY OF CONTRACT ADMINISTRATION-EXCLUDED
Under this Component a PHA is entitled to receive a Grade of "A" if based on HUD's latest
on-site inspection and audit, where a written report was provided '0 the PHA at least 75
calendar days before the end of the PHA's Fiscal Yaar (FY), there were no Findings ralatee
to contract administration or the PHA has corrected all such Findings.
Neither HUD nor the Corps of Engineers had performed an on-site inspection or an aueit
during the two years prior to this Review, therefore, this Component was excluded,
However, during this Review, the Review team examined the HACMB's contract
administration for ClAP project No, Fl29P017904-97, The funding from this grant was used
to purchase through wall air conditioning units, The HAC~IB could not provide
documentation for the competitive procurement of ,he air conditioning units or the selection
of the vendor, TransWorld, Inc, The HACMB could not provide a ccpy of a contract for the
procurement of the units, although the file indicated that the air cGnditioning units were
purchased under an existing contract with TransWorld, Inc, Although a contract with
TransWorld, Inc, appears not to exist, the files included invoices from TransWorld,lnc, The
Review Team was unable to determine the extent to which the HACi'vIB monltoree
purchases under this grant (I.e" ensuring purchases did not exceed the contract price and,
etc, ),
Also, force account labor was used in the installation of the air conditioning units, but no
evidence of inspections of the quality of work was found,
Recommendation: The HACMB must establish procedures for contract and file
administration for all procurements, Also, the Procurement Officer should perform quarterly
reviews of the contract fiies to assure acceptable and well-documented procurement
activities and that contract file administration is being performed by designated staff, The
HACMB must ensure that all procurement of equipment, services and materials is in
compliance with 24 CFR Section 85,36 and its own Procurement Policy.
COMPONENT #4. QUALITY OF PHYSICAL WORK. EXCLUDED
A PHA is entitled to receive a Grade of "A" under this Component if based on HUD's latest
on-site inspection, where a written report was provided to the PHil at least 75 calendar days
before the end of the PHA's FY, there were no findings related to the quality of the physical
work, or the PHA has corrected ail such findings.
Neither HUD nor the Corps of Engineers had performed an on-site inspection or an audit
during the two years prior to this review: therefore, this Component was excluded.
COMPONENT #5, ADEQUACY OF BUDGET CONTROLS - GRADE A
Under this Component, a ClAP PHA is entitled to receive a Grade cf "A' if it has ex~ec,dea
modernization funds only on work in HUD-approved ClAP budgets or has obtained ;Jrior
HUD approval for required budget revisions.
The grade of "A" for this Component was supported by data that showed that funds had
been expended only on work in a HUD-approved ClAP budget.
Based on the weighted average, the overall grade of Indicator #2 is a grade of .',A,,"
Component #1 which was excluded and #5 have weights of "1," Component;;;2 has a weignt cf'2.'
Component #3, which was excluded, has a weight of "1 y,," Component #, which was excluded,
has a weight of "3,"
,
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...
INDICATOR #3: RENTS UNCOLLECTED.. GRADE A
This Indicator examines a PHA's ability to collec: dwelling rent owed by reSlcents In
possession during the assessment year by measuring the balance of rent unccllec:ed as a
percentage of the total rent to be collected.
Under the Rule, rent to be collected is defined as the dwelling rent owed by residents in
possession at the beginning of the assessed fiscal year, camed forNard from the prior fiscal jear.
plus the recurring monthly dwelling rent charged to residents in possession dur'ng U-,e assessee
fiscal year,
Dwelling rent uncollected is defined as any of the dwelling rent to be collected thar was ncr
paid during the assessed fiscal year, Included in this amount is the unpaid dwelling rent at the fiscal
year end of any resident who was in possession at any time during the assessed year. Excl~sions.
such as unpaid rent for residents who vacated during the assessed year, unpaid rent incl~ded In a
formal repayment agreement. unpaid rent for residents in the process of eviction, and collectic,",
losses due to write-offs of uncollected rent, are no longer allowable.
The HACMB certified that dwelling rent owed by tenants in possession at the start of th.e
year, carried forward from the previous year, was none: th,e dwelling rents billed during th,e year
were $428,080: and the dwelling rents collected during the year were $428,080, Based on thiS data,
the HACMB had total dwelling rents to be collected of $428,080 and that its total dwelling rents
uncollected were none ($428,080 less 5428,080), Therefore, the percentage of rent ~ncollected
was 0,00,
The balance of dwelling rents uncollected from tenants in possession at the beginning of the
year, dwelling rents charged for the year, ending tenant AiR balances and collection write-oils
during the year were checked against rent registers, the general ledger, financial statements, the
TAR reports and the HACMB's working papers, In addition, these numbers were discussed with key
members of the HACMB's staff.
The Review Team Confirmed that dwelling rent owed by tenants In possession at :he start of
the year, carried forward from the previous year, was none; the dwelling rents billed during the year
were $429,915; and the dwelling rents collected during the year were $428,226, Based on this data,
the HACMB had total dwelling rents to be collec:ed of $429,915 and its total dwei!ing rents
uncollected were $1,689 ($429,915 less 5428,226), Ti,erefore, the percentage of rent uncollec:ec
was 0,39 ($1,689 divided by $429,915 equals 0.39),..
A PHA is entitled to a Grade of "A" if the percantage of dwelling rent uncollected in th,e
immediate past fiscal year is less than or equal to 2 percent of total dwelling rent to be coilec:eo,
Since the percentage of dwelling rent uncollected was calculated to be 0,39 percent, a
Grade of "A" was confirmed for this Indicator,
INDICATOR #4: WORK ORDERS.. GRADE A
This Indicator examines the adequacy of a P,.,A's performance with regard to ::mplering
maintenance work items as measured by its work order sys;em. The Indicator evaluates hcw ,he
PHA controls its active work orders as well as the timeliness of completlcn,
Any work order active within the PHMAP assessment year ;s Inci~ded regardless of when It
was received or completed, However, only the calendar days within the current assessment year
are included in the calculation, Implicit in this Indicator is the adequacy of the P,.,A'sNcrk crder
system in terms of how a PHA accounts for and ccntrols its work orders, and its tif':',eliness in
preparing and issuing work orders. This Indicator contains two Components relaring to U-,e
following: Emergency Work Orders and Ncn-Emergency 'Nork Orders,
.
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COMPONENT #1: EMERGENCY WORK ORDERS COMPLETED WITHIN 24 HOURS OR
LESS - GRADE A
To receive a grade of "A" for this Component. at least 99 percent of the emergency work
orders must have been completed or the emergency abated within 24 hours or less during
the PHA's immediate past fiscal year,
The HACMB certified that it received a total of 58 emergency work orders during the year. it
further certified that all 58 emergency work orders were corrected or abated within 2d hours,
The Review Team confirmed the information reported by the HACI'vIB, The grade for this
Component was supported by the emergency work orders which showed that the
emergencies were abated within 24 hours, The HAC",IB will receive a confirmed grade of
"A" for this Component.
Recommendation:
While the HACMB has a system to track the completion of emergency work orders, the
system needs improvement.
1, The HACMB needs to ensure that a system is developed and implemented which tracks
the time of day emergency work orders are requested and when they are completed,
Currently, neither the work oreer log nor the work order form tracks the time of cay the
work orders are requested', issued or completed, Therefore, in cases where emergency
work orders are completed within 2 calendar days, the HACMB would not be able to
determine if the emergency was abated within 24 hours,
2. The HACMB needs to develop a formal written list of emergency situations that are life
threatening. Emergency work oreers are to be issued when these situations are
present.
COMPONENT #2: AVERAGE NUMBER OF DAYS FOR NON-EMERGENCY WORK
ORDERS TO BE COMPLETED - GRADE A
To obtain a grade of "A" for this Component, a PHA must ensure that all non-emergency
work orders are completed within an average of 25 calendar days,.,
The HACMB certified that it had a total of 961 non-emergency work orders and that the total
number of calendar days that it took to complete them was 1300, This calculates to an
average to 1.35 days to complete non-emergency work orders,
The Review Team confirmed a total of 1221 non-emergency work orders and that the total
number of calendar days that it took to complete them was 1300, The confirmed average
number of days was 1,06 days (1221 divided by 1300). The HACMB's performance under
this Component warrants a grade of 'A,"
Based on the weighted average, the overall grade for Indicator #4 is a grade cf "A."
Component #1 has a weight of "1," Component #2 has a weight of "2,"
INDICATOR # 5: ANNUAL INSPECTION OF UNITS AND SYSTEMS - GRADE F
This Indicator examines the adequacy of a PHA's performance on the annual inspection of
units and all building systems that determine short term maintenance needs as well as long-term
modemization needs, In addition, this Indicator also measures how a PHA examines the condition
of the housing stock and how it initiates all necessary corrective actions associated with identified
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43
deficiencies, This Indicator contains two Components relating to the following: Annual Inspection of
Units and Annual Inspection of Systems.
COMPONENT #1: ANNUAL INSPECTION OF UNITS - GRADE F
This Component measures the effectiveness of a PHA's annual inspection of units in
accordance with local housing/occupancy codes or standards that were at least equivalent
to the Housing Quality Standards (HQS), whichever is more stringent.
To pass this Component, a PHA must inspect at least 90 percent of its units during the
assessment year; and, if repairs are necessarj for local code or HQS compliance, complete
the repairs during the inspection, issue a work order, or refer the work order to
modemization,
Based on the HACMB's certification for this Component, a grade of 'F was awarded. The
HACMB certified as follows:
(a) That It had not implemented an adequate inspection program that
generates quality inspections and tracks both inspections and repairs,
(b) That it had inspected 100 percent of its units,
(c) That 133 of the 200 units, 66,5 percent, which it inspected met local codes or
HQS, and
(d) That it completed all repairs on units where necessary for local code
or HQS compliance either during the inspection, issued work orders
for the repairs, or referred the deficiencies to the current year or
following years modernization program,
The Review Team found the following:
(a) The inspection form being utilized by the HACMB for unit inspection is
not equivalent to HUD's Housing Quaiity (HQS) Inspection form, The
inspection form used by the HACMB oniy identified general repairs, It
does not designate whether the repairs are HQS violations, life
threatening or non-HQS deficiencies, The present inspection form is
limited to only 3 lines for each unit the HACMB inspects,
.1
(b) The HACMB could not show evidence that HQS inspections had been
performed on all units,
(c) On the units which it inspected, the HACMB could not provide evidence
that repairs were completed during the inspections, work orders were
issued or that the repairs were referred to modernization,
The Review Team performed HQS inspections on a sample of 10 icw income Public
Housing units, Five (5) units passed the inspections, t:NO (2) units passed with comment
and three (3) units failed the inspections,
Since the Review Team was unable to verify the HAC,\iIB's certification that it had inspected
100% of the units and brought all units into compliance with Codes and HQS, a grade of 'OF"
was confirmed.
Recommendation:
The inspection standards are being changed from HQS to the Uniform Physical Standards
(UPS), A sample of units will be inspected annually by inspectors from HUD's new Real
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44
Estate Assessment Center (RE..o.,C), As mentioned above, the scores from these ins:ections
will be one of the indicators under the new Public Housing Assessment SystemPHAS),
The Ci?,C:VIB must train its inspectcrs on the UPS. Also, it must develop a tracking system
that ensures that all PHA units are inspected annually, and that reoairs are ,:ompiec2c on ail
cniis wher2 necessarj, In addition, the HACMB must use a unit inspecticn fcc whic~
conforms to the UPS, The HACMB must enhance the system to identi~! whether "spairs
identified during annual inspections were performed during the insoectiens, a wcr". order
was issued, cr the repairs were referred to a modernization program. HAC:VIB managers
must use these enhanced systems to ensure that repairs are completed timely or :,'"':at they
are referred to its Capital Fund program, Deficiencies under the UPS system ::-ust be
corrected to assure safe, decent and sanitarj housing and to avoid receiving peer ~r failing
scores on the REAC inspections,
COMPONENT #2, ANNUAL INSPECTION OF SYSTEMS.. GRADE F
The purpose of this Component is to ensure that, in addition to the annual inspec:ion of
individual dwelling units, PHAs are aiso annually inspecting and maintaining t~e major
systems that are essential to decent, safe and sanitary housing. This Component examines
the inspection of buildings and sites according to the HACMB's maintenance plar,
A PHA is entitled to a grade of "F" if it failed to inspect all major systems of at least 60
percent of its buildings and sites and perform the required maintenance on thesa sys;2ms in
accordance with manufacturers' specifications and established local PHA s;andarcs.
The HACMB certified that it had inspected 100 percant of its buildings and sites, according
to its ,vlaintenance Plan, Also, the HACMB certified that its inspections included perfcrming
the required maintenance on structures and systems,
The Review Team found that the HACMB did not have a written Maintenance Plan for its
FYE June 30,1999, Additionally, the HACMB could not provide the Review Team with any
documentation showing that an annual inspection of systems had been perfcrmed,
Consequently, the HACMB was awarded a grade of "F,"
Recommendation:
The HACMB must develop and implement a written Maintenance Plan, The annual sjstems
inspections must be in writing and be performed in accordance with the HACrv1B's acoroved
Maintenance Plan, The HACMB must maintain data showing the number of buildings and
sites where necessary repairs were completed to comply with the UPS either during the
inspection, issued work orders for the repairs, or referred the deficiency to the c~rrer,c jears
or next years Capital Fund program, All written inspections must be maintained so that the
HACMB can document its performance under this Indicator,
Based on the weighted average, the overall grade for Indicator #5 is a grade of
COr.1ponent #1 ane Ccmpor.ent #2 have weights of "1."
30th
INDICATOR #6, FINANCIAL MANAGEMENT" GRADE A
This Indicator examines the amount of cash reserJes avaiiable to a PHA for operaticr,s as a
percentage of total actual routine operating expenditures, If a PHA fails to maintain a cash ~eserJe
percentage of at leaSe 10 percent, the PHA shall then be assessed under Component ;;:2, energy
consumption,
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45
"
COMPONENT #1. CASH RESERVES. GRADE A
A PHA is entitled to receive a Grade of "A" if it has cash reserves avaiiable for operations
which are greater than or equal to 15 percent of total actual routine ex~enditures or the ?i-iA
has cash reserves of $3 million or more,
A coordinated effort with the Finance Director and staff accountant was conducted to
determine an accurate cash reserve figure, This included a review of the financial
statements, the Independent Public Accountant's (IPA's) audit, tnal balance, cash recorc:s
and revolving loan worksheets for the FYE June 30, 1999,
The HACMB certified that its cash reserves were $624,176, The Review Team found that
this amount was actually the operating reserve ending balance, The cash reserves reported
for PHMAP should have been adjusted for short-term accounts receivable and payable,
Based on the HACMB's books and records, the Review Team computed the cash reserve
figure for PHMAP purposes to be $143,212, The routine expenditure figure was found to be
$775,178, Consequently, the cash reserves were 18,5 percent ($143,212 divided by
$775,178). Based on the results of the review of the HACMB's books and records, it had
operating reserves of 18.5 percent which resulted in a grade of "A,"
However, the Review Team has serious concerns about the amounts shown on the
HACMB's low income Public Housing books and records, The cash reserve amount
included inter.fund accounts receivable and payable amounts of $146,851 and $238,511,
respectively, The accounts payable amount was a plugged figure to balance with the
Balance Sheet. In addition, the Accounts Payable Revolving Loan amount showed a
balance of $456,098,39, Also, approximately $251,465 in amounts payable to three other
funds were written off during the year,
While reviewing the worksheets utilized by the HACMB to reconcile the revolving loan, it
appeared that the cash accounts for the HAClVlB's funds were reconciled but the offsetting
entries for the inter.fund and revolving loan accounts were not, thus distorting these general
ledger accounts. The issue of using a plugged number to balance the balance sheet
indicates serious accounting problems which are exacerbated by the fact that the HACMB
does not have a self-balancing set of accounts for each of its program fund groups,
It appears that the HACMB is subsidizing its low income Public Housing operations from
other sources, This may indicate that this program is not operating efficiently, To ensure
future financial solvency, the low income Public Housing program should operate on its own
COMPONENT #2. ENERGY CONSUMPTION - NOT SCORED
This Component measures the PHA's ability to control energy and utility costs in the
assessed year when compared to a three-year rolling base average cost. It is oniy
assessed and the results included in the grading of the Indicator when Compcnen #1
results in a grade of less than "C."
Since the HACMB received a Grade of "A" for Component #1, the HACMB was not rated for
this Component.
Based on the weighted average, the overall grade for Indicator #6 is a grade of ''A,'
Component #1 has a weight of "2." Component #2 which was not scored has a weight of "1 ."
INDICATOR #7, RESIDENT SERVICES AND COMMUNITY BUILDING - EXCLUDED
PHAs with fewer than 250 units will not be assessed under this Indicator unless they rec::uest
to be assessed at the time of the PHMAP certification submission,
.
46
~
The HACMB did not request to be assessed under this Indicator for the assessed year,
INDICATOR #8. SECURITY - EXCLUDED
PHAs with fewer than 250 units will not be assessed under this Indicator unless they request
to be assessed at the time of the PHMAP certification submission,
The HACMB did not request to be assessed under this Indicator for the assessed year,
"
1.
47
...
THE HOUSING AUTHORrrf OF THE CITY OF MIAMI BEACH
PUBLIC HOUSING OCCUPANCY AUDIT
Appendix Number 1
ANNUAL REVIEW OF INSPECTIONS - PUBLIC HOUSING UNITS
UNITS PASSING INSPECTION AT REBECCA TOWERS- SOUTH:
Passed - Apt. 207
Passed - Apt. 616
Passed - Apt. 713
Passed - Apt. 1004
Passed - Apt. 1111
UNITS PASSING INSPECTION WITH COMMENTS AT REBECCA TOWERS- SOUTH:
Passed - Apt. 411, smoke detector keeps beeping,
Passed - Apt. 1211, damaged kitchen cabinet top, cracked wash basin without leaks,
smoke detector keeps beeping,
UNITS FAILING INSPECTION AT REBECCA TOWERS. SOUTH:
Failed - Apt. 202, exhaust fan inoperative.
Failed - Apt. 506, smoke detector inoperative,
Failed - Apt. 807, exhaust fan inoperative and smoke detector inoperative,
;
!
...
48
THE HOUSING AUTHORITY OF THE CITY OF MIAMI BEACH
SECTION EIGHT MANAGMENT REVIEW
Appendix Number 2
HOUSING QUALITY STANDARDS INSPECTIONS
THE UNITS FAILING THE HUD INSPECTION WERE AS FOllOWS:
901 7th Street. ADt. #2, Miami Beach: Floor tiles in kitchen floor starting to crack due to lack of
decking support, lifted tiles in bathroom creating a tripping hazard, tub in bathroom needs
replacement and caulking all around, Security bars could not be opened in bedroom (missing key)
and the wood decking, similarly to the rest of the unit, is rotting and is in disrepair,
1415 Meridian Ave.. ADt. #17, Miami Beach: window sill in bedroom shows signs of termite
infestation, missing towel rack, toilet needs caulking around base and soap dish brcken in
bathroom,
1255 Marseille Drive, ADt. #117, Miami Beach: smoke detector in bedroom needs to be reinstalled
and be operational again, sink leaks at bottom and there is a very limited counter space in the
kitchen, caulking needed around tub in bathroom.
1930 71" Street. ADt #20, Miami Beach: bathroom and second bathroom have no ventilation
inasmuch as the centrai system is inoperative: cracked electrical outlet cover in hallway, refrigerator
is missing the door handle and has a poor seal on its door,
2011 Bav Drive, ADt. #15, Miami Beach: missing screen in kitchen window, stove hood has no light;
seals are not proper in refrigerator door; cold water faucet knob stripped; broken guide in cabinet
drawer; soap dish and towel rack need replacement; leaky wash basin: rusted, back splash needs
caulking in bathroom; bedroom window needs guides, springs and balances; water heater rusted at
bottom.
1781 Normandv Dr.. ADt. #1, Miami Beach: smoke detector inoperative, settlement crack in popcom
in living room ceiling, window pane missing, paint peeling off, sink rusted and leaking at bottom,
refrigerator door is off balance, electrical switch recessed in wall, water (mildew) stains in ceiling.
wash basin needs caulking and is missing the stopper, wash basin clogged up, peeling paint in
walls around tub and window in second bathroom, door damaged requiring replacement in master
bedroom, security bars have no egress,
1805 Normandv Dr.. ADt. #1, Miami Beach: missing window screen, rear door frame damaged, door
missing operator and screen, water marks above door in ceiling of kitchen, paint peeling off and
water leak in window sill, cold water valve leaking, missing stopper at wash basin in bathrcom,
water stain and paint peeling off around window in rear-right bedroom, ;l,G unit not cooiing prcoerly,
227 Antiouera Ave.. ADt. #102, Coral Gables: reinstall air vent and fix fan, replace toilet seat cover in
bathroom, paint peeling off at door, baseboard damaged at bedroom, smoke detector neec:s new
battery ,
6930 Rue Vendome, ADt. #3, Miami Beach: ceiling condition is bad, needs re-plastering at bathtub
and the tub itself needs replacing due to extensive damage around the drain (items in bathroom),
Also, leaky faucet in kitchen,
842 Penn Ave., ADt. #1, Miami Beach: threshold in living room is bent up, creating a tripping hazard,
floor tile missing at kitchen door in kitchen, wash basin drain slow in-draining, tub neec:s caulking,
.'
".
49
700 Euclid Ave., Apt. 405, Miami Beach: exhaust fan not operational in kitchen (no ventilation),
carpet at bedroom doorNay is buckled up, presenting a tripping hazard,
2130 Biarritz Dr.. Apt. #4. Miami Beach: one burner in stove is not operationai, no back spiash in
kitchen, cracked eiectrical outlet cover plate, replace door in storage room.
1569 Biarritz Dr.. Miami Beach: electrical outiet not secured to wall-exposed wires in living room.
peeling paint, universal crank missing in jaiousies (front enclosed porch),
334 Ocean Dr., Apt. 105. Miami Beach: left window will not stay open, no screens in windows at
living room, gas turned off at stove, three ceramic tiles missing at wall, vanity cabinet door falling off,
small leak at toiiet flush handle, small leak at wash basin.
1552 Washinoton Ave.. Aoe #5 Miami Beach: window operators missing, wire hangers used
instead, paint peeling at all windows in living room area, paint peeling off in the building exterior,
bathroom tiles do not match at all, sloppy work and owner should replace, This unit should not be in
the program,
UNITS PASSING INSPECTION WITH COMMENTS:
531 Hispaniola Way, Apt. #12: 800 Washington Ave" Apt. #901: 800 Washington Ave" Apt. #109:
800 Washington Ave" Apt. #112: 1214 Alton Rd,. Apt. #203; 745 Euclid Ave., Apt. #8; 2814 Collins
Ave,; 1023 Penn Ave" Apt. #4; 609 Lennox Ave" Apt. #2 (all in Miami Beach) and 2046 West
Flagler St., Apt. #511 in Miami.
UNITS PASSING INSPECTION:
800 Washington Ave., Apt. #405, and 465 Ocean Dr" Apt. 1025. both in Miami Beach.
50
$
HOUSING AUTHORITY OF THE CITY OF MIAMI BEACH
IN-DEPTH CONSOLIDATED MANAGEMENT REVIEW
Appendix Number 3
SECTION 8 FILE REVIEWS
240 South Shore Drive. Act. #3
The HACMB used the wrong payment standard to calculate the housing assistance subsidy,
Also, the wrong utility allowance was given,
Corrective Action ReQuired
The HACMB must recalculate the housing assistance subsidy using the correct payment
standards and utility allowance,
Mercedes Suarez and Ana Rocha
The residents' file lacked third party verification.
Corrective Action ReQuired
The HACMB must obtain proper verification and recalculate the total tenant payment.
Eliset Nieves
Based on the information in the file. we could not compute the contract rent and utility
allowance.
Corrective Action ReQuired
The HACMB must review the file and recalculate the contract rent and utility allowance,
Asuncion Andersek
The HACMB did not use the actual utility allowance to determine the total tenant payment.
The owner did not sign the lease.
Corrective Action ReQuired
The HACMB must review the file and recalculate the contract rent and utility allowance, The
owner must sign the lease,
1255 Marseille Drive. Act. #117
The HACMB used the wrong payment standard and the incorrect utility allowance to
calculate the subsidy, The verification of earnings did not state how many hours the tenant works
per week,
Corrective Action Reauired:
The HACMB must obtain the proper information and recalculate the total tenant payment
(TIP).
~-
51
~
700 Euclid Avenue. Aot. #405
The HACM8 did not include the tenant's medical expenses as a deduction,
Corrective Action Reauired
The HACM8 must review the file and recalculate the total tenant payment and provide the
tenant with an interim adjustment within the next sixty days,
334 Ocean Drive. Aot. #105
The HACM8 did not include the tenant's medical expenses as a deduction, Utility
Allowance of $33 is included in the calculation of the contract rent.
Corrective Action Reauired
The HACM8 must review the file and recalculate the contract rent: the totai tenant payment
and provide the tenant with an interim adjustment within the next sixty days,
542 Jefferson Ave.. Aot. #106
The HACM8 used the gross rent instead the payment standard to determine the housing
subsidy, The incorrect utility allowance was used,
Corrective Action Reauired
The HACM8 must review the file and recalculate the housing assistance payment.
240 South Shore Drive. Aot. #3
The HACM8 used the incorrect payment standard to calculate the subsidy assistance. The
incorrect utility allowance was used.
Corrective Action Reauired
The HACM8 must review the file and recalculate the housing assistance payment.
,
231 NE 163'. Street
The residents' file lacked third party verification.
Corrective Action Reauired
The HACM8 must obtain proper third party verification and recalculate the housing
assistance payment.
785 84'h Street. Aot. #2
The family received a four bedroom voucher but the family is living in a three bedroom unit
and the HACM8 applied the four bedroom utility allowance instead of the actual size. The family
was issued a certificate instead of a voucher, The certificate was issued to husband and wife but
the husband has not signed all the documents,
Corrective Action Reauired
Effective October 1, 1999, no more HAP contracts can be entered for the certificate
program. The HACM8 must recalculate the housing assistance payment using the voucher
..
~
52
payment standard for a three bedroom unit and apply the correct utility allowance, The spcuse must
co-sign all documents.
1214 Aiton Road. Act. #203
There is no addendum to the lease in the file,
Corrective Action Reauired
An addendum to the lease must be in the file,
2011 Bav Drive. Act. #15
The HACMB is using the incorrect income amount.
Corrective Action Reauired
The HACMB must review the third party verification and recalculate the housing assistance
payment.
.
,
JUN-20-00 TUE 09:48 AN BRIDGE HOUSE
FAX NO "Oh eo~ ?ona
, I J ..., :),JC: .... c..v
P,]1
1'1 ' [,: \
.
To: Mayor Nelsen Kasdin
City Miami Beach
From: ~my Turkel
Bridge Housa
Date:
Fax:
Re:
June'4. 2000
305-673-7254
HousinG Authority of Miami Beac~
Good allernoon,
Per our conversation on May 23, I must resign my seat on the board cf the Housing Autho'ily of Miami
Boach, I have been honored to serve an the board for the past three yea:s and I am coniidcnt that the
work thaI I was involved with will have long and positive Impact on the organization.
I appreciate your support of my appointment and I hope that you will continue to be Involved and con-
cerned about the status of the Authority, As I mentioned to you when we .poke, IhiS IS a very sensitive
limo at the Authority and your assistance, guidance and appointment cf strong, compassionate, hard-
working people who are committed to enhancing and expanding affordable housing on Miami Beach is
critical to tho success of the organization.
Beach.
Plaase let ma know if I can ~e ot any assistance to you as II ralates to tne Housing Authority of Miami
::;,/ Z-L~
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II ,''. ". _;lei
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All 01 the best.
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BRIDGE House
1632 Pennsylvania Avenue Miami Beach FL 33139
Ph1305532.7200 Fax/305 532-2029
1St Fund, which shail
Joration on behalf of
-3 provisions of 55. 420,. .
, There shall be depo$
he documentary stamp
, 201,15, moneys reca .
'e purposes of ss, 420,
, and all proceedsd~
,ch moneys. Moneys In!
needed for the purpose.
d pursuant to 55. 420.
, shall be deposited 10'
, be invested as provided
In any such investment
"'
ail administer the fund e
implementing the prog.
_420,9078 and this sect
iitaring the activities of
iilies to determine local
""'uirements, the corpora'
;riations from the fun{
,ei costs, For the purpose
:lnce monitoring prov;siOrll
oration may request a",
al year, When such lundlng
llion shall deduct the am
Jlating the local housing
O,9~72 and 420,9073.' .
;n,),-,o7.
PUBLIC HOUSING
Ch,421
CHAPTER 421
PUBLIC HOUSING
PART I HOUSING AUTHORITIES (ss. 421.001-421.54)
PART II MISCELLANEOUS PROVISiONS (s. 421,55)
PART I
HOUSING AUTHORITIES
State role in housing and urban de'/elee-
ment.
Short title.
Finding and declaration af necessity.
Definitions.
Creation of housing authorities.
Appointment, qualifications, and tenure or
commissioners; hiring of employees.
Commissioners or employees prohibited
from acquiring interests in housing proj.
ec:s and required to disclose interests in
specified properties; exception.
Removal of commissioners.
Powers of authority.
Operation not for profit.
Financial accounting and investments: fiscal
year.
Rentals and tenant selection.
False representations to obtain lower rent in
housing accommodations; penalty.
Cooperation of authorities.
Eminent domain.
Planning, zoning and building laws.
Debentures.
Form and sale of debentures.
Provisions of debentures and trust inden-
tUres.
Validation of debentures and proceedings.
Remedies of an obligee of authority,
A~djtional remedies conferrable by author-
Ity.
Aid from Federal Government; tax exemp-
tions.
Reports,
Liabilities of authority.
Organization and establishment.
Contracts and undertakings.
Notes and bonds,
Co~tinuance of municipal housing auU",:ori-
:les when municipality abolished; cor...:nties
In excess of 400,000,
Housing authorities in counties.
Creation of regional housing authority.
Ar~a of operation of regional housing ar...:thor-
Ity,
Commissioners of regional authorities.
. Pa~ers ot regional housing authority: cefini-
~ tlons,
~1' Aural housing projects.
.; . Execution ot mortgages.
421.33
421.24
421.35
.:121.36
.121.37
421.38
d.21.39
.121AO
421..11
d,21.J2
421.43
421.~
.121.45
J.21.46
J.21.47
421.48
421.49
d,21.50
421.51
421,52
421.54
~ousing applications by farmers.
Acditional cefiniticns.
Supplemental nature of sec:icns.
S(':or: ~it:e.
Caferise r.cr...:sing; fir.dir.g ar;c cec:aration cf
necessity.
Defense housir,g by authorities.
Acting fer Federal Gover:1ment on eefense
housing.
Cooperat:on by pt..;biic bodies on cefense
housinc.
Bones fer cefense hcusir.g le;a! invest-
ments.
Defense housing contrac:s vaiica:ed.
Fl.emovai of restric:ions for defense housinG.
Defense housin"g; definitions. -
Provisions supplemental.
Organization and establishment of housinc
authorities validated. -
Contrac~s and uncertakings of housinc
authorities vaJicatec. -
Notes and bonds of housing authorities vali-
dated,
Area or cceration of housing authorities fer
eefense housinc.
Oec~easing area -at operation of regional
aL;thority .
Authority for county excluded from regional
autr,ority,
Authorities; creation, obligations, etc., vali-
dated,
Housing authority. Orange and Seminole
Cct..:nties; iimitation.
421.001 State roie in housing and urban develop.
ment- The role of state govemment required by par':
I of chapter 421 (Housing Authorities law), chapter 422
(Housing Cooperation Law), chaDter 423 (Tax Exemp-
tion of Housing Authorities), and chapter 424 (Limited
Dividend Housing Companies) is the resDonsibility cf
the Department of Community Affairs: and ~:-:e depart-
ment is the ager.cy of state gcver;-:ment respensible :cr
the state's role in hor...:sing and urban de'/eic::ment.
HI,lor'y.-i. 13, ::'1. '5:1.'C6::i. sa, :'"1. 3~-:37' i, 53,:'"1. ~:;-5:.
421.01 Short title.-?ar': I of ~his c~a~:-er may ':e
referred to as the ~Housing Authorities Law,~
Hlltor'y.~. 1. c.":. ~7'i8~. :937; CGL 19.t.C s~::<:. 710(:!3-'.I).
421.02 Finding and declaration of necessity.-lt is
hereby declared that:
(1) There exist in the state insanitary or unsafe
dwelling accommodations and that persons of low
income are forced to reside in Such insanitarj or unsafe
511
c:,.
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........
?1J2UC HC1':S;,'iG
,:!C::::~~cc2.tions: ~r.3t 'Nil~in ~he sta,e :he~e :5 2. sr:c:-.
age :;: .;;afe ,cr sa~ltar! jwei!:ng ac::,"';"":;;:cr::ati;.:~s a';2.li-
3.::e 2.~ rents WL;iC:' persons cf low ;r.::::~e can aUcr,::
"':,(lC :,'ia: s;...:c~ :erscns are force'.:: to eec'.;::'! over.
~r.Jw::3d ant:: CJnges:ed .::::we!ling 2.c:cr:"\mc~aticns:
~~at ::~.,: 3.fcres2.!c ::mdilior.s ,cause an increas3 ;,'" 2."iC~
~::r22.,::: .:f -:isease anc:r:i.1e and .:::r,s::::.;;e a~er:2.C?
10 :~-= ~eal:h, safe!:/, r:"lcr3lS anc 'Ne!far~ of :~e i%;.
:~,~:3 <:~ :~,e s:::te and ~,~:;air e':C~:::,IC ';3[:..;25: :~3.t
t.'''~ese::~diticr.s necessitate excess:',''? or,a :::isiJrc.:cr+
,Jonate ex:enci:ures of ;Ju::iic tunes ~or cr:r:1e pre'je:l-
tic"" 3:-;:: ::u~:s.1ment. pr...:biic health. 'Nei~are arid sa:ety.
;ir~ ai":;: acc:c:ent :rctec~icn. and o~her ,JL.:!:!ic serliC2S
and :aciiities.
::;;'Jr. areas :r. ::--,e 3~a:e C2rfiC: ':,= ;::e:::.;~':. ,"':;
:::3.n :~~ shcr:a;;e ci safe at.:: s2riit3r/ ::'m:!:in:;s ~cr :er.
scr,s:'; lCW inc~:'Tle be reiieved, throu';.:n the c.ceratiC:l
cf ;:Jr:'ia:e 8ri!er;rise, and that ~he conS:;:Jcticn or hc~s.
ii:g ,:;:iec~s for persor:s of low inccr.1e, as herein
c:efine,:::. 'NOL.:ld therefore net:e com;:::e:::ive 'Nit~ pri\'s.te
er.te:;: ~:se.
(-.;', i ;,e clearance. re::anning and rec:ns,;;,;c:icn
:f :~-? ~;eas :n ',;,'iiie,"'. :nsar',itai'/ cr L.:isafe ~ct-.:s;r:;:cr.
di;icr,s exis, and the provicing of sale anc sani:ar/
,:',','s:Jirg ac::mriloC:ations fer perscns cf lew :r.c21..e.
i."::::'...;:::ng the aC:::Jisiticn t,y a housing aL.:t~ority ci q;.JO~
:,~;.~ ~~ ~~~~s~e;n~:;: ~~~~9~~:~~~~i~~~'~:i~:-=!~,C~~~3~~:~ F~~~!~
. '" ,.'
~I:C:";~:':S9S :cr 'NnICi: CllOi:C .-n:~e/ '":'ia:; :.:! s~e;,,:
3.r,-: :~"':3:= :;:8e:..'/ 3c::..;ired ar.c a,e ';;o'/'?ri,n:sr.:ai
ft.;nct:ctlS of ;Jllciic concern.
i":"; 7:i8 .iecessity in ~he public interest fe." t~e .:r:::vi.
s:ors :;erei~after enacted, :s hereby:ec:ared as a :Tiat-
:erJi :e~is:ati'J~ ceter~lra!ion.
His:;:r'.'.-~.;:, ~:'. '~:;a~ ':;':;'7: :::~'- ~g.:o S,,;:::J. -;'.:':'>~1
.l2~.:: Defini~ions.-~;-:e foi:cw:n,; :9r:7:3. 'N~~;-.
~\/e: ~se: ':, reie:-~eG >.:; ir, chis ,:a:... s,~,a:1 ,-,2.','e d.':; ."".
:0'.'111; lesp2c~i'le mear.ings fcr the ~I...:r:::cses sf t!",is
,car, '..:~:es3 a diffe:er:~ meanins; c:ea,rl~1 apcears Irer~
(,"l2 c:,~:ext:
',i' ",""utr.o~!~;i' or ~ho~sing aut~c,r~:y~ sn~ii ~ean
aJl'/ :; :1:8 :I..;CIIC :or;::or3tjOnsc:-eate::: :y s. ~.:::. ~ .~..:.
-., 'Citf s;;a.tt mean any city sr ~'~'~m :f ~:';~. 3:a:e
:';2.'/::';: 3 cc::::..;Ia.::cn or mere tL',a.n :::'.:;1.,.;.,). ::..:::,::r,,; :-:
:he :,2.s: ore':e'.:ing feGeral Jr s:a:e :?rs:..;s. ~:';e::~f
3:-J~: ~'2,:':.:i ''',e :2;::;C'.;:3.f ::t~, :cr .'i"',:~ _ :::.r::::...,.:;,
:' ',: ~s: ,..'~ ~~..~:~ ~~' i:~' ~s ~~." ~~~,: ;;;~ ail
l7leai: ::-e ::~/::::l.i::::i.
t:->:: ,::,'"T',i7':iSS,CII.::r cn"'.er :e-;;is:atlve :-:':,/:~2.,;:-?c.: -,','::l
,;:::\'~r,"',i;ig t:'":e::t'/, as t;o,e ,case ;r.a'!:.::
,~:' '~..layc(" $,-:311 i:1ean tr.e rr.ayc c; :~e :::'/ c, ::-,-?
officer :~erec; c...,ar;e~ with the ::..:::e3 :....;s::r:-'a(:~.'
ir.:ccsec: In tJ1e "T'ia~lOr 8r ,3:<2.::..:t:ve ,~e3C: :r t::e ::tI
"
~C:er~.;" 3,'::3.1: mean ~he ,:~er~:1 :~e :;::; ,:r ::-.,::- '::;>
:er sf :.18 ::ty c~ar";;ed With tr-,e :'_:ies ;:'c.;s:,:r;".ai::~J
'r::>::se,.: '::: ;~e :!erk (rere,::!.
., ',~,ea or::,:eiaticn"':
'2i '" t~e ,case of a :---:01...:8i:19 3r...;t:'":cr:t:i ,:;f:3. ::t:/~2.'/-
:.:g 3. :ccL.;:aricr of :ess :han 2S..:CS. srai! .i :::,,;,:e s:..;:,~
::t'j :;.'"':~ :he area ',';'Ithin 5 i.liies ::Jt :~a :er~:~::r:di ':':;U:':::2-
~::3S :J'":2i2Sf;:3.nc
'"'1 '~~ :2.'O.:::f.3 -''::UST;:;'~:.'"u;;:: :: 3. ::;',
r~ _
:~ 2::,~:: ':;- -:-e ...,e.
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- -- -,~..~
:;!'/ .;;..~::: ::--e:=..--?:,:, '.'11,.'-:1.'1 ~ C ....,.~:es :,:r:i :re :'2,- '--
::::~:-,:2:'e.3 ::-,e~'?':::: ,:,:'/;c,::,: '~':','J.::'~'~r, :~,c: ::-.:: :;.,~~ ~
;:::;~:::.:::r: :: 2. -::..;s:r:,:; ::.c..::~,:."::'::~ 3",;i ':::-/ 3:',2:
ir~:::~":':2 2,,'/ '!~S-2. .'.::,c~ .:es 'Nit:~:r: :.>::; :er~;::~:.2~::'_-:1'
::::--~ ::-~' ::;'1 :::'3 ,...,.?~~-: :~::__~:: ::;,__: _~-~.
:~: .,:-;s .~.::.- .-,:; 3,"ea:' :::~'.3..':~ 3-3."
,- -. ;',';- ~. ,
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, :1cus:ng authority of a cirj ~~:;~;:
:CO or rr.ore snail IliC!uce s',
Ir., 1 C miles from :he ier;jtc~
:'1:Ged howe'ler, that the ar~
; authority of any city shail a ct
'ies within the territorial ::CUt;~
as herein defined; and ~lJ~J':
f ,:::~eraticn sr.al1 not extend Cf.""
;r :i:e Cou;;t'l In 'NhlCh the c:;~ .:"
. '\'1~
. .authority s~all h~'~e an,! pcW1t
r :he count'l In 'Nr:ich ih... C'!o.J'
J ~ "/ l
~rr;ent" shall include .the United'
srr;er.c'l ~cmJnlstratlcn of ?t;b.
;enc~1 or ;ns:rumentalilY, ccr:o.
? ~:-:ited States. :
::21"'. any ar:a .'Nh~re d'Ne!!ir.~
. re3son or cliapldaticn, cVet'.
~ri',er.t or ces:gn, lack of '/en:il~
'c:lit:es, cr. any cO~CIr.alicn ~
'er;ta! to saiet'!, health alic 0110(.
,,"
shall mean ar,y wor~" or
~3r, Sf remove buildings ~rcm
.'< or i.,mde1.3.<ing may emcr3.e.l
:a ~o ;:::uclic ,:r..;~poses, inc::..;cil",q
:~2.J or corr:mL;nlty purpcses: cr
nt. safe and sanitary urtan 'Cf
....,ts or olher iiving ac::cml7lcca.
~c::r.1e; S:":C:' 'Ncrk or u.":cer:ak.
;s, land, ec;uipment, fac:lities
~i ;::rcpert~1 reI" necessarj, c.::n.
:urtenances. strgets, se'.'lel"3,
s::? :."eaa"a::cn, c:aid?n:ng,
"I ....' ~I'h r""....~""~riC;-i ~,-;",..,
','" ~,l" ~~,~;::" "c::., .....~.
'..;.":e-ses; cr
:::::m::naticn cf the fcre-;cing.
c:" also may be applied to l1",8
-=.nd imprO'/ements, the ac~uj.
~o(jticn of existing struc~ures,
~;..;ctjcn. aite:2ticn ~rc recair 01
ail ether 'Ncr:, in connec:!cn
',CCrT:e~ shall mean perscns cr
:t..;nt .or ir.cc~e 'Nhic:-t is Me as-
.:-:e aL.:therity undertaking lhiJ
~:Ie them, withoL.:t financ:al
:ent, safe and sanitarj cwei~
~Q.
I~"ilean any netes, interim C9('
:r.ue certificates, or atr-,er cbii-
crity pursL;ant te this cha~ter.
3.:1 :nc!ude all ~ar.cs, inc~l.'C:r.~
-=os ~~er~cr_. arc cr::cer::1 ct
~er-?to, or !..<sed in c::nrec::cn
re. in~erest and right. !egal or
r.g ;erms fcr /~ars arc,ierJ
;--:'~aGe or c:>:er.'/ise ar.c :h,
.;;uch liens. ~;.
1uthorit'l" or ~cbljgeet sha~
~!'ltures, 'trLis:ee cr trus:e~5 f~
ocr demisirg to the autr.c~t'f
,"'"
?'..!BL:C :'---!CLJSiNG
0:::""1. ~2:
/~ert'! used in con.nec:ion ':'ith a ';st...:s;r.g:r:!es~. cr
~Jss:gnee or ass;g:=ees cr sue>: .ess::r'~ ':::~,es::r
" art 'h~"""....' ::a"'d 'h~ =~r'"'-~al '-"~"Q~~""'""I'"" ,./~.......:.
If'? ." ~,-....."~,, ' l '... . ~~<:;" ,...:;... '~",""-'" , .'."." ,\
l~art'! to ,an:ccc~tr,:c~,::vl~,~ ~~~e ac~t:~~~:::/.
~::~_' 2J~C-;;, ':'3'502\,,9/4, ;.:~5;"'~.1;v ;.l..~.; ;7'.~~'''''';'':
:-Gl1.04 Creation of housing authcr;~;es.-
In '-0'" '~;"/ as ;...-,,-',~ ,-'-':_""r'"' .'"'~",,:- --"-1'""/
(11 ~a " ....". ' ,,<:;'. ':: ., ...<::." '_~. "'. ,:;', ~ '" ."';':;....
..dl~d a pubiie ccc:/:cr:crate anc:clir;c :0 :e'"r-:;'.'In
"-.e ."OUS'"g '~"''''or'I'I~ a' 'r-"" ~.t-... ---'/'....0'""' ,.....,v
,s';l I, ",' 1"',,,",,, : J , '_""~ 1..,,/. ~"~ ,~_~..., ,....,,'
If!(' that SUC:1 authorit'j s,ia:1 r:c: ~r:::::sa:_~ ar.'/ :1...Si.
~ ar exercise ,its ::c\'Iers her2'..:.-c::e: '..:~~:i cr :j~12S3
"e,;c~~rn~r.~ ::~::' c~~:~,~:y?; ::-,~Ee:.~:~7:i;";,:;c_~,~:2!1
;jeo:::ar::: .hat ,he,::; ,s "~_~ ,_r =.., ,:;:~,' -c. "f "'-' lH~l.,,~', r
~~ ~:~t:d T:~ea;~:,~;..;~/;;~t:~r\~~;sc::~~':'J~2r~,~, :her::; is
'a) :'ilay::::e mace t:y ~he ;c'/er:ilrg :c::~, ::r :;:;: ::'Ni.
~~!cn: 8r
':ti Shail ce mace :'1 ~r:e:::'::;'-i.~,.:: :-:::'j ''':C:Ci :~2
I ,,' -. ,..; _; ,,;,... r' -,...::: __ :~-_....._ _ _ .'- _ ~...
.iit:gA a ~e"l"cn ",gr.~~ ~/ .;::.... .:::S"~:::,..,, ~r 'd,':;: ~.,/
)SSer:ing ~hat there is neet ~cr3.~ 3L~~,:r::~1 ~,_: \;,-<:::,:'1
n S;,;C~ cit'/ arc: reC;L.:estir.g ~:-,2: ~:-,e ',;c'/=.-:-.:;,:; :c::.' 3":
~e-::are.
:::' The goveri',ing tcdy :T:a'j accer a resQi:,,;::cri
deC~aring that there :s neec fer a i":co..;s:rg aL.:thcr::~/ :r
te '~:~j if it s,~all find that: '. ,_ , ,.
(a) Insanitary cr ur.safe Ir.r-:aCllec: :',';'?ill~g 2CeCi':'"'.'
,11CC3licns exist in sL;ch eily: or
(b} There. is a ~,'"':crtage cf safe?r sa~itar/ ,j"'.'8[;:rg.
K~:::r.:r;:cda:;cr:s in SiX;-: c:t/ 3':2:;2::e :: ,:erscr.s::r
'(ffl :nc::me at rentals they can affor=. Ir. :::e;err:;ir:r.;
Nr.er~.er ,jwe!linc acccmmccaricr;s are '.lr;safe '-Jr :r;sa~.
~ary saic gov;:rnir.g bccy. ma,! :a;.;e ir::: ccr.sice.r~;ic~
~~e ~ecree 0i oV9::~rC'Nc::r.a, :~e ::9,"::3."':;:3.C9 Ci :2i::
~::',e:;';e, the Ii~nt, air, s:Jac9 =.;'":c a.c::ess ?~/ai]2':!9 :c
~~e ir.;-,abita;:ts of SL:C,'1 cwe!!ir.c: 2C::::,'7'.I7"",c::a;:::;:s, \'-:2
~i;:e and arrai.gement or t:-'e rcCt:is. tre sa.-:itar/ :ac:ii.
~jes, and the extent to whic:, ccnci~icr.s exist in SL:C,'"':
e~:icif'igs which endanger life or ;:r::;~e~/ ::::1 ;ir9 or ..:; 1:-: e:
causes.
(3) In any Sl.iit, ac:icr: or pr:ceec:i,,,,;g ir.'/cl'lins; ~,'-;e
vaiicity or er.force:.'.er"',t of cr ,::;!ating to ar./:::ntrac: ::i
I~e aut~orit'J, the authori!'/ shail be :Jnciusi':9!'1
~eemec ~c ha'/e become aStaciis;;ec ar.C aL.:t~crized:o
transact business and exercise its ~cwe:s i--:erso..;ncer
!,teen .:rcof cf the acccticn of a rescll.it:c~ '::'1 ~,'-;e ':::::':_
'lming bee,! cedarir.g 'the need ;or ~he ::L::-:crit".J. S-l.lC:i
rosoluticn or resolutions shall :::e suffic:e::r :1 it:j'ec:ares
:har :here is such neec for an 21.1thcrirj ::.r:d rir.cs in Sl.it:-
1lanliaIJy the foregeir.g terms, .-IC fL;:-:h~: cetaii ce:r,c
necessar/, that either or both of the above enumerar~t
c~ncilicns exist in the cil'l. A CGC'I Df s~c,l rescit.;tic('~
duly certified '::'1 the c~er~~ shall t~ acr:-:is3:~ie in aI/i-
r::~~~,_:~;2~{~S'~:~;8: a?3~~;'~g: :~~;~,~:;~~~S'2-.
421.05 Appointmer:t, qualific.]tior:s, and ~e(1\,.;r: ,:;f
commissioners; hiring of emplcyees.-
(q W:-:en ~he governing coc'!;; a C:,"/ ac:cc:s a "SS-
,:Iutlcnas aforesaid, ~r.e mayer, with t~e ~:crC:"'/2i cf ~~.e
povernlng body, shall cromerl,! accoir.[ .-:0 fewer :han
,IV') oerscr:s, and no r..ore ~han se'/er: cers,:;r.s. 3S ::Cr'7"1'
,11ISSiCr.ers of the authoril! c."eated ;0;' scc,,,,, ,'::;:/. -;-~rse
.
. ,. . .'
::i ;r.e:crr:mlssicre:3 '.'Jr.
-:es;gna_ted to serle Tel" e~~9s ::~~' ~,C~CI~~a~ r~~.:::::r~
"9s:::e:::'/eIY: the re~a~r: Gg :::,-:."T",IS3icre:3 :;:, C,' ='=
:esa;r:a:e~ te sera Tel" ~er77'.S :f .l /e3rs ~a:,i, :r:::;-- ~~e
~~I::~i~:~irab~O;~~~';t~~la:~;~:!f~"a:~:: ::a:,~:
'::::~i ~~:;~:~~r~":I'~ :~:~ ~~'i~~:'I~';':~~:\,~/~',~e::-~;:~;
~f:er sl,;ch '/acarc:.' ::o::.:rs. ::2C1 :.~cr,,;s:,,:; a~~.~c::~', :.;0;_
a:ec: pursuant te :J'":is ,:,'l2.c:e; s:.~2il ;~2.'/e a: '022.5: ::;8
cCi'i,'7iiss;cne." 'tI,-:Q s.'-:a;[ :e 3. ~es;ce::t '.'I~c; 's::..:~"'?:~ '......
~?~t:r: a '":cusi,'i:; :~'::'=c~ cr a :erscr, '.:; 'C'N :r "9- _"
.~~~~~~e 3"~~~;::~:2~'~' ~~t;~.ts~~~/~~':~~;~~;; ~::~ ~~ :~~~
~'"' :~~' :~~~; f ~~~c~ ~::~ ~ ~~ :~~~: ~~~:; e:~ ~'~~:t~C ~-: ;;: ~ ~ ~ ~.:~
~C''';S:r.,; aL.:t~c:::'/, '.'r;:C.~.::~~.33;:,""'e" s,-~
::;:=ci~!~c: at ~~,e ::;'7'02 ~ '/2.::3r~.:': -:::<:::;:::. ,,,",: ",-e :23e ::
,~~ ~ ~i:~~~~ ~/rr~~.~.~ ~: '~~ ~~i';t~;~ :,~~:::j ~c: e::~~; ~..... ::e ~-,:.'= ~
~,,,," r. ;,';e ,'irs; .:,-:.e,c::f :r,e 3.V~c:t./ "2'/~ :ee..... ::::..:'
.='ec.. Tiie ::2SS2.:;':.~ c.f a t9.'"ic'-;"::i.":i.":ss:c:,e:s :e.-"
al-:c,/ in a hous;r~ :r:jec~ :r :~e cessa.t:cr.:f re.~: 3:"':'
~~~~e~;~~I~ ~er:~~'e~~ ;~~~:;e~,:~~i~,~,~~i~~~r~~;2;-::_:
~9c:uired !cr the ':77:,:e s.~a:1 ::e a::::::,r.te::cr ~,'-;e ,,;,~e:(-
eired ccr:icn ci ,;';e ter:7i. A.t:2r ail ~eascna:le e:":.-:s
:'a'le ceen maCe and Gcc~me!"i:ec:. il the :::::i.":.i7'IS.s:.:,.
e-3 :;nc ::-O,at no :-:c'..;s:.'"ic ::r::ec~ res::~.~l:- --?r"t ::;:";:.3:::'/
;eS:Oleii~ is a'/3.ila:le ':0 ser"le as a .e::.=.....;
:cr.,'missioner, t~e ex:s:inG '/acar:c:1 sn2]1 then :e ::,:2':
;,i,Cl.:gr !,k,e ncr:-r.ai a:::::cir::;-;;er.! :....c:ecl...;;es set :cr-:,- ;r
::-:IS 5<..:csec:ici.. :-:::'.';e'/2:, $:"::.: ~:;i.":2.: ::.::c:r:.-=,~:
5,'iail ~ct ;:rec:l.lce :,'"'e -s':'..;;'-er:-:S:i~:~ ~;(2-C;Se :i::;:8.....c9
:- a:! s:..;cceecinc 'i2.':3.r,::es ::: arts:.::;c ::;st .3C::,-: -=.
:e:lar.:-':Oi'TlrT',iss::,'ie: r";citi! at :::3.3; cne te:;2.,-:-
cJmmiss;cner has ::een acccintec. No ccr:-:r:-:iss;,:;r:e;
d an aUl,"10r:ty rr:ay be ar: a'f7icer or sli'iplcyee of :he ::t'/
fcr'Nhic:-: ~he a~t;;cr::'J is ereater::. A c.:r.:rnissiener s,-a.:1
:--.cic cif:ce until a s~c.:ess:::r has ':een acccir.te~ a:-:
:-:as ':;t..:a::fiac:. A cer:ifica:s at ::-,e a:ccin;merit c, ~=s.c'
::Clnti.":.9ri'( of an'/ ::i7'.['":'"'.iss:cner 5,"';ail :e :ilec: ','/:L'- ::-e
clerk, 3nc: such-csrtii1cate shail :e::::crc:L;S;'/e ::;'/:::8:-::=
.:f t,~e c'..;e and ;:rccer a;:ccir.tment of s:...:c:: :::,"";"'; 5-
Sicr.e,.)., ccmr:iiss:cr:er s,'"':ail recei'/s .--:0 ::r..:e'--:S2::-
:.::r his c:." :ier ser/:ces but s;';2.11:8 ert:t;ec: ~o :r8 -e:-=~'
sari ex::enses, inc::...:cir.g tra'lei ex.cer:ses" iGc'.,;r~e: -
t.ke G'isc,~arge of iiis or her cL.:ties. T:--:8 re~L.:ir~~e'--::3 :f
tr:is sL:=sec~lon wit:' rss;:es: ~o tr:e ."':l.irr,ce, ,]; ':::--,:-,:;;:,
sicners ci a hcus;.,::; autt'icrit'J a.::!:;lj wlthct..:t.;=-=gs..: ':
:,'":e date '::r, whicr: ~~e ;,eus;::g aL.::;--.cnty '.'Ias :~ea:e:.
(2; T:~e ::;cwers ,:f ~3C.1 aL.:thc.":~'/ 5:-,2;[ :s:es:e: :-
:ie:::,"";"',~;ss:c,-e;s ':-:e:.:;cf :r, :f7:,:~ :":,- .,-~ ::
:-:iajc.":r/:f ti:e:::~"'-::ss:cr:e:s s,-:a!l ,:::rs:::'~:-? ::. :_:-
~'~~;/~S~.e2:~t:~~:~';:~~;g;r-:~s ~:L;~~/~~: ~~~::'~ ~'~~/~~~_ ~~
:I~r:cses. Action ~a:/:e ~a:-<en by tre 2I.L:-:cr:;,/ ''':~:- ~
','";;e or 3. ."7iajcrit'j ,-:f :he ccmr.:issicr."?rs ;:r'?se:.~. '~r_;e.ss
in ar:y Gase the by!a'Ns cf the autrcr::~j reCL.:iro? 2 ,2:~-e-
~t.:r;;ber. T;;e mayc." 'Nith t~e ccr:c:':."~er.ce:f :,'"",? :;:.,
err,ir.g :CC:I shail ::::ssi~r.ate wr:ich cl :~e :crr~:33:,:~'
ers ac:::cir:ed sha;::~ ~r.e firs: c:;air, :l.t ','i,"',er: "-~ :n:::
C;," 421
PUSL:C HCI;S:NG
.~C'
of ~;:e :hair of the authoritv thereatter becomes vacar.\.
:~e 2L.:thority snail seiect 'a chair from among its ccm-
r.::s3:oners. An aUlhorit,/ shad seiect from among its
c:::r.:missioners a vice chair; and itrnay employ a secre-
ta..../, who shall be the executive director, techr.icai
e;<~erts, and such other officers, agents, anc emcioy-
ees. permanent and temporarj, as it may re(juire anc
s~-:ail aetermine their qualifications, duties, and co(';".-
~'e,-.sation. For such legal services as it ;nay require. an
a:..::::cr:t'J may call ucon the chier law otficer of the ::ry
or ~.ay empioy its own coulisei anc legal s~arf. ..:....~,
2'...::r.crit'j may delegate to one or more of its ager.ts or
e~qioyees such powers or duties as it may deer;;
pr::er,
-';' N0twithstanCing the limitation contained in s:..:c-
se::rcn (I) on the number of commissioners of a hoL.:s,
ir;: 3:..:t"ority. any housi,1g authority that r.as incre :hai",
S='i~r. commissioners on Marl:h 23, 1991, may ni2ln.
ta,n :~e same number of commissioners it haa or.
Ma,:h 28, 1991,
History.-s. 5,cn. 17981. 1937': CGL 1940 Suc:o, ]lCC(3.el: 5,l.cn.5:1-413
~ :~. ':'3.165: ,s. 1, 2, c~. 30-357" s. 273, c.,. 31,259: s. 1, c~. 34.250: s, 1. :.'1.
3~'::: ;s. 1. 2. c~ :01-6: s. 32. c:1,:17. le3.
~21.06 Commissioners or employees prohibited
from acquiring interests in housing projects and
required to disclose interests in specified ;Jroperties:
excaotion.-Exceot for the leasehold interest held b'/ a
te.-:aGt.-::ommissioner in the housing project in which ':-:e
or she is a tenant, .'lO commissioner or employee of an
a:..::~cr:t'j shall acquire any interest. djrec~ or inGirec~. i~
a;,~1 ~"'\OL.:sir,g prcjec~ or in any property inc~L.:Ged or
;:ia,~.r.ed to be inc:uded :n any project, nor shaii he or
s,"',e ,"'lave any interest. direc~ or inciract, in any cant.-a:::
or :rcoosed contract for materials or services to be fur.
nis~ed or used in connection with any housing ~rojec~.
If a :ommissioner or employee of an authority owns or
c:...._:rJls an interest, ciiet.::t or incirec:, in any pr:pert'l
in,::'..;:::ed or planned to be inciuced in any housing ,:rcj.
as:. r,;a or she shail imrr:ec:iate!v ,~isc~ose the same :r.
'N~<;",;:: to the authorit'l, Suc~ cisc!osure shall '.:e
e."":ere-d upon the minute's of the aL.:thorit'j. Failure so to
dis::cse such interest constitutes misconcuct in office.
33H~~:~~~:;~.5. :;:1. 1798:, ~937': :Gi. 13~0 5";:0. 7'lCC(3.1~ s, 2. :;:1. 3.1.~~':J: s.
~21.07 Removal of commissioners.-For ineffi.
c:e....,c/ or neglect or cuty or misconcuct in cffice, a COr:1-
r.::ss:oner oi an aUlhority may be remO'leC '=':1 the mayor
w::'": :he concurrence of the governing body. but a corn-
m:ssi-.:;ner shall be removed Orilll after he or she s:-:aJl
h2>= :een Given a ::='1 -:d :he ::~arc:es at !east 10::3.'/5
pr'cr ~o (he ~hearirig thereon a;-:d had an occortunity ':0
be~8ar: in persen or by counsel. In the a'lent of ::;8
re...-:'::',':!.Iof ar.y ccrnmissioner, a record 0; the ,~rocee-:'
in:;s, :.;gether with :he charges and fincings there:,:.
s:iaii be filed in the office of the clerx.
~. ~~st~~Y:j;sl':J~'. c.". 179a~: :937': C::it" 13.10 3"::0. 71::0(3'g;': s. :. ::1, S,H: J:
~21.08 Powers of authority.-An authorrry shail
cors:itule a public body corporate and ;:;olitic. exer:::s-
ing :~e public and essential governmental functions set
fcr:~ in this c~aptar. and having all the pewers neces.
sar/ -:r convenient to car,,! aut ane: effectuate t~e ~ur.
:Jese and::rovtsio~s 01 :his chamer, inc!udir:c tne ~G
IO'....:i1g po-':"ers in 3cditlon to others .'lereln grarltec:
'~, -:-::: Si..;2 ar:c' ':e s:..:et.::;:c ~c'/9 3. s~3i 3.~:': ;"':.
:re sar:-:e 3.! :!93S''';,9::: "':2';e ,:~~:e::";2; :;:";C::::::O :-:':
;::2...<2 2.~,: exec:..;:e ::."'::~3.c:s :;,~: ::,-;?; ,;S-"_ -~-:'"
r:ecessa."'/ cr c~r'Je:::e",:-: ::-:e e:<er::se:i :~= ::"'':.':
e! :."';9 2~t:-,or:ty::e 2:::ea.":i1 eeL.::": :.i...::";:- 3.,~',
ce,s. a;er:s, or e~::c:,'e9s. rc; :,~e ~xe::..;s:'_-= :_~::-:
sf :ii:r.g 9',':C::C..... .:3.:e,-s: -=.rc: I: -:a:..;e 3.::: :-:- . -"" '.
t,.~e 2;-:-:9.-:: a,"',::: ~=:e3.: ':~/ia",'/s. ....;:es 3.:,",:: 'e:;:'~ 3.: :-::
r',et Tee.is,slen: 's:",": :~:s :,-:2.::1e.". :::2.."-:' ;r:: e"-=:: ._~
::'.'/":."$ 3.,~,,: cL..:r:::sss:: :,-e 2:..;t-:.,..
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OL.::' aC::..;:r9. !ease, a....,: ::ar3:9 -,::..;:;;....::: :': e:::; 'y
;:i:'ii:e '.:;r :he :::-:s:r',,;::::::.~.. :e-:::~,s:;'-:::c:- . _ ~ ''';_
~9."":. a::2o;::.~':."':.:r -s:a:':: 2,:'/ -,::..;s-: :;;: e:':' ;;'-.
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r.CL.;s:,'1g .:;rcjec: c: :."19 ::::..::a.....:s :,"',9"20'::;;: :-:. ~~_
r-,CNe'.:e~, t;---;at no,.'i::::s:a~c;.iC =.:~,'''' ,elr'sr :C'.'.-?,' :. :~:-
v:s:c,~. ;;-: :~:s c~a::e-. ::--9 ::.~:~:r'~." 5,"':2: ::C: ::-Z"';::,
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nec~ior. ','/ith or 2S a ;:art 'Jf ar,~1 ~0t..:S;,'"':; :r::;e:: :." =....:...
et:-:er real::r ar':y :::--o,er :,c:er.,/ '.:~::::-::r ::5 c:,~:-: _
s:.-s:=,'7':. '.'Ie":" ~a-:,!:::es, ::2[';:S. :.. :l'-'-::~ e:'_,:-e~:
tt".e :t..::-":-::se d fi..:r.'"':!s.:ir,; '..;t:lit~1 se;"',!:e ::1 2....:
SL.:C,-: ;::rcjec:s 'Jr to ary le:-:ar;~ 0;:1::::.1:20,.: ~;-,e:e:' ~ :.-,e
9'ie:-:t :~at a sys'!e~. 'Nor'..;, ~a:::ii,/. :i3..::.:r::.--e.' e:'..;':'
r7'.er; il:: :~,e iL;r::<s,~:,,~ :; :r,e sa,7.~ _::':;,: s-e-, :?:
:.eir;g 2:t'..:2.i[y c:e,'a:s-c:y -=. 7'-..r:::;:2:::> :- :.:.,';.:::
:::n:9.'"':'1 'n ::,e ares. :; ,::~ra;::.~ :r ::-:2 ::I'/ :.. '--e :e'~:'
:c,~/ :;:;:-:-.ecia:eiy 2:!2::=....,: :;.,e-=::: :~:'::Ge':, --~,
~hat ;,ct.....ir.g herein :;:--;2i! ':e :::-,s:::..;e-: t: :r:-:: '~Q
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>,
j; to have a seal and to
1'18 perpetual succeSSia .
lets and other instnJm~~
) the ~xercise of the "'0 ~
i C?Ur11hraugh a,ny O~ts~,
S, ,or the exclusIve PlJ~
'c :0 make and from time. Ill"
"aws, rules an~ regUla!i~_.
a~ler, to carr/ !nto effect
e authority. "~
;~eralion, to prepare, ~ .,,'
Jerate housing Droil"c'~' I '.
.' '~'~, iQ .",":
:' reconst~~ctJon~ irnprovt:<f.~'
i any hOUSing prCjec: or ~; :.
. .:;,'
let for the furniShing by ~'i4
: pn'/ale, of ser'.ices, prrr1o,q
)r, or In connectlor: with,..Jt
:uoants thereof; pravid&d"i':-
r,g any other power or Proo~:'
Jthorlty shall not canstl1.l~:j,:
ather.vis~ establ.ish in CC~~'.
1ny hOl,:sir,g prclee: or atfoJ"'(~:.
:ert:1 uncer Its COntrel, anyt
;l5, or other equipment fOll,
;:iiity service of any kind tQ'~:.
t or occupant thereof in !f,.r~~
c'lie;, plant, or other eGUi~~'.~;
he same utility servica.-lc .
a municipality or privale r
ticn or :he city or :he terrf.'~
hereto: provided, further;~
construed to prohibit the.';f.
/ the authority of any SYs-':~:
=c;:.:ipr:1ent fer the 30le alic'-'~~.'
ity services from any SI..'C,~,l
'oncem and then cistribut.~lj._
d'~
project and to the tenants;;
notwithstanding anything"f:_
~is chapter or in any olhe(l
lr:y contract let in connec':"-*
,s requiring that the c~r(' t:,
:rs comply with requi~~~l;
and maxlm:..rm hours of ~
::nditicns which the Fgd.~~.
:ached to its financiaJ aid'~~
..,~;~
'/ellings, houses, accem. r/
stiuc:ures, or facilities:!;
)ject anc, subject to the)
.'lanter, to establish and!
?refor; to own, hold, an~,._~
~r.y; to purchase, lease,;~.
by gilt, grant, bequest,}:
or aerscnal orooerty or -::
~ by the exercise of the j
/ real property; to sell, .
;n, pledge, or dispose 01
r an'l interest therein; to .
'ince of any real or ~er.'~
Jt the authority agamsl f;
ra or agree to the pro",
Jr.tees from the FaderaJ .t
:~
"';~: (f1rr.e~t c;f the payment of ar.,! such cec!s ,::r ;::ar:s
. ;"~of, wil9ther or not ir:c:Jrreo: .by saic ar..::,':cr!t:/,
~~.J:",{edl'n"" :;"':e OQ'N9r to Ga'l cremll.;ms en a~'/ suc~
~ 'p:iu,' . , c .
r3f1ce.
.~~) To :iI'/9st any funds held in reser/es or 3;ilk;ng
;t~4"( ,or any funds net rect..;ir~~ fc~ irr:r.:9~ia:e .cis-
-5_~~ men!. in property or sec:.mtles in 'Nr:lc~ sa'/Ir:gs
:..--...~ , rally .,n'/os' 'un-s -. '.0''''',.... '0 .h""i_ --0'-".
:<;;j:" ksmay,E.:;I , ~" ,'-' ~... ;-..., \ u,~".~ ,lL'.",
l;}D'f. (Chasets decer:tures at a .~rice .lot i'71Ci:; :.""2n :~e
<f;;f-i).P~:pal a~cunt thereof and ac~rued ir.teres:. all
;::~,;}(l{1 ntures so ;::urchasec: to t:e car:ceiee.
"" _ :.&.,Jo.e __ . . . . .
"",'; (6) Wihn .rs ar9~ or operatICt,,:. ~o in'l:;s::s:a:e li1tO
~9 cwed:ng, and ncuslng ccnc:tions ana :r.::: t~e
a~s and ;;iethods of imprOVing SL;C,' c::rcit:crs: ~G
", , . roro slu~ a'eas ex's. I'"'~ "'no''''' ...-."" ;s a
delermlr.e_;'I__~~:1'"' _'~~"" L ~~~ ~~~:~_.,,; :, ':':~~'~':',___~ .
. JI'lOrlat;e 1..-. ...--..... ,t. .:>e...,_. '_L ,,- ::;,..... ",e, 'j .....No:;:.",,~ ._."...."'r
.,.,cdaticns ;er persons of ie'll income; to r.ia;:.;e s~:..;cies
and reccrn~er.datiQns relating ~o the prebler71 cf ,:~ear-
119. replannin?, an~~ecG~stru::~lon cr slur.-: areas aile
"G ,crcDler.: .:;r provlCIr.g ::::welll~g aC':':r:'rTiccar:c...,s f~r
ptrsons of :cw Income; to admllilster fair hCL:su-;; ?rcl-
nances ar.c ~ther cr,:::inances as a~c.c:e:::::i ::::8S.
eeunties. or ,::~.'ler authorities 'Nr.o wisoi to c:r:r..'ac: ,~cr
jCmlnls:rative services anc to coq:erate with :r.e ::ty,
If'le county, the state or any political sucdivision therect
WI action taker. in connection with S:":C:l prCC!erT.s: ard
10 engage in research. stuC:ies, and ex;:erirr:er.:a::::.1 en
'.:.. tle subject of ."'Iousing.
.. "(7) Actjr.g through on,e or more commiss;cr.a:-s or
. Ol~erpersan or persons cesignatee by the 2'...;:r.cr::y: to
conel,;c: exar;-:ir:atians and investigations anc: to hear
l.stimony ar.:::: take proof under oath at public or ;:;ri'/ate
hltanr:gs on any matter material for its information; to
Sdminister caths. issue subpoer.as req:.:iring the
.llendance or Nltnesses or the pr:duc:ion of :OCk3 ar.d
papers and to issue commissicns for the examiration
01 witnesses who are ct.:tside of the state or r.:r:atie to
Itlend before the authorit'/. or exc:Jsed frem artenc:-
Inca: to make available to appropriate ager.c:es,
Including these charged with the duty of abatir:g or
ttquiring the c::rrecticn of nuisances or like c:::r:c:it:cns,
cr cf derr.olis,.....inc unsafe '::r ir:sanitarl structures w:\I'"1in
. :t.s area of operation, its fir.dings and ~ec::ml7:er:ca::cns
'WIth regard tc=r:'/ buiiGing or :)rccer:v 'Nhere ::r:::::':I":s
axJ.~t '''''lich a~e::'angerous :0 'the ;:::UCiic health, r.io.als,
lafely, or weifare.
(8) To exer'::se all or any part or cOrr1Cinatio," cf
powers herein granted. No provisions of law with
respect to ac~uisition, operatior., or disposition or .:r::;p-
tny by other :~blic bocies shail be acr:;iicacle to an
.l.Ilnority unless the Legis:ature shaH specificall'j so
llale,
.,.tory._,. a, -:.', .;-:;a: !Si.')';"- CGl ~'t4C Suec, ;-::<:13.,,);~. 37. :,. ~5. 9::;:
I. .d\.37'lG1.
PU6LJC HOUSiNG
C;:l. -t2~
re'/ar:!...;e ~': ~!;e::~/. 7_,:) ~,"":s -?:":: 3.r. 3'..;::--:(t,/ S'~2,~ ';x ~r.:>
rer:tals te,' ::we!iij'~gs:r:.:s ,::-::e-:: =.: -: :~:c;,-9; -2.:2 :.":3,"::
it shail .'ir:c to :e ne':253a,-.ii' :;r:e: ~: _::-:C:~c::: i:::'''9_
~~~esn ~';.ici'~'C ~~~: ~~~~r /I.~~::,'~ :'~ :,~~. :~ .~=~'~~ ~ e:; ~~.~ ~~ ~~ ~
'Nhate'/-?r 3curces:::e,:'i9'::. -,1,-: :::: s:.;;'::::er.:: .
! ~ I
T: ;a:/. as :re sa::e 3~a:! :'?'::~e ::~'= ::-e :i:,_
c:cai e.r,::: ir~:,=res; :;;-: :.....e :e:-?-::..;,es :~ '.'":'; ::..,,~.'-:~ :',:
12: "'0 ceee' :"e::s: ::. s-c :: :::,'Oe .:: -CaiC-
tainlr.g ar,c Gce:-ar!,;c; ~:~e :~::='::S. ,i'::::..;::;~r; :.-e ::5: :'
ar_,! ins'-.:rarc2. ai':e :.~e e.:;:-;i":s:~a::',e ~X::;-3-?S ~ --:::
a'...:~hcr::'I; ar>:
(3) T,: -:r93.:9, ct.:r:....,; -:: :e3s :,-2.,-: :....e 3 /e-=.,-s
~~~:~~c~ 2.~t:~:~r~~C~~~~~i:;~: ':;~ _s:~~a:~ ~:::. 2~~:;:':.: ::~~~~
::,:8 :....:=..~s: :2:'--:-:9-:5 ,'1,- :'~ ,'.< :e ::....e :,- 5:.;.::-;
::e:e~:L.:~es :n 2..~:f' ~e /e?~ :.-e.".;a::e-. =....,::: :: 72.:.::=.:.""
s:..;c~ reser/e.
i-'131::rf._,.:; :~, :~12:. .;.:;- ::~
':~: ~ .:: ~.:: :.
421.091 Financial ac=::(.;...~t:ng ar.: in'/es:i":-:e.'":ts:
fIscal 'fear.-
(~) )., :::7.:.:::e ar,::: "'"' .:.""2....::a, =.::::.",---; 2.,-,:
3l.:Cit ir, ac:::r::a,~ce '.vi~,~ ~e':e~:::: a:.;::: Si2,~:ar:s :;::....:_
iie ;,oL.:si~,;: 3.~er.c:es s;-:a;r:e -:.a'::6 :;8:-.r:.a,ly :':' a:2r:i-
fiee ::l.:c::c accc!...:,-ta"'L )., :::': :i s'-c:~ 2'';::: s,-e.,: :e
:;ie::: ','/1:.'-: :,"':,e ;c"ie:~::-.; :::':' 2-: ,.,:::- ~."e ,.;.:...::;::- :::e~.
aral.
(?) -;.,,,,, l;s-~i '1e-."";;;l ;."...."....i...c :::l,,~"",...:.'/ ~;";::,I :..;;>
!~~J~~~~i~ ~/~e~: j~l~:~i~~~:~~~ ~~:::~~~::;, ~-~:~;~.L:?'~\':.e~~;~;~~
.21.09 O~eratjon not for protit.-:~ is ~he pdc':, ~I
thl&state that each housing aUlhcr:ty 3;--.a11 manage 2:~d
operate its housing projects :n an eifie:ent marrsr so
iLl :0 enable it to fix the ren:ais ~cr d'Neiiing ac:crr.r.:o-
e.all~n~ at the iO'Nest possibie rates consistent 'Nith :ts
PrOVlclng decent, safe and sanitarj dwe!ling ac:c,rrn:c.
daflons, and that no housing authority s.,;ail cor:stn.;c: or
~rale any Sl.;Ct: project for profit, or as a source of
421.10 Rentals and te::ar,t $ejec~icn.-
(1) In the ccera:icn cr ~2.r:a';e~er~t r:f ,~::!...'s;r::;
cro.iec~s a.'"1 3'-,~r-Cr:t"./ 3,....a:1 =.~ =..: ::r~s ::s8:-,'e ~"e :::_
Icwing::..;::es 'Ni;~ j'~s:e':::: ~e--:a:s 2;:': :a:-;2.:::s 3e:ec-
t:on:
. (a) It .~a'j r~r.t cr [ease :.;",a :',',ei':ng a-:c:~~cca-
liens :here:rL onlY te .:ersc:-s :. C',';' :"':c::r:-.e 3....: 3.: rett-
ais within tr.e finar.ciai re2.c,~: ':; s,..:c:-: ,:e:$,:r:s ::f :C'N
ir:come.
(b) it r-::2Y rent:r :ease t: 2. :e:-:ar.: :',';'8i::r,; 2.c:::er~>
.7:cdatioris c:::nsis::.-S; :f tr.e ,~:..;,~i:e; ::i rCCiI_s. :!...'r .~c
greater n~rr:cer, wr:;c~ it cea:-s .iec:::ssa,~/ Ie C~:'..:':~
safe anc: sa~:tar/ ac::c..;:~CC2.~>:'-s :: :.~e ,c,':: :s'?':
cc:::~par,:s r:~ereci, wi:,'1cut e'.e;-:r:'.'IC:.~:;.
Ce) it s,:"ail ac::a;:: any .ce,~s'::i asa :e;:2:-: :,; =.:~:;
;-:cusing::'Jiec: acc:r:ing:? t~.e ::crcc~a:= ;'..;;::e::;,e~
as es.~atilshed C/ :l":e L..'~I;.ec ~:a:as L..'e.::ar::'~e~: c:
HOUSing a:1C: Urea;: De'/e::::::r-e::t er ::~:e; 'e':.e~2.:
a,;enc:es. . , '. _ . . ,
(d) The :Qepar:r:-:e.'"1t ':r .-ea::.'": 21;: ;-ar.a:', :2.::',e
Ser/ices, ;:::L.;rs!...'a~t:J.t5 C..=..=. s. 23.2.2'::'3;': ", ~.
~aj not cor.sider ss :r.c'J."':":a ':rcar-:;c,:::2,":S .... '-e
'//),-3::5 =~:::;.3ri 253:S:3.:--:e ''?:e~',e: :'/ '-=: :'e-:~
~~:.'"1 ctl~er acer.c:ss ,:r :r::0::....,::::::C.;3 3~:,: ::2 :..;:::::':
r.CGS;r.c o::~:!;cj';ties. -
(2) ~'Jc:,~i:ig cc.;~ai,ee '.'1 ~.'-:s 3e':~:c"-: :;r s. ..:.:. ::.
s,"1aiJ be c:rs:r'.,;ec: 3.S 'ir:-.i::r_g :.-8 :e',v,?: ct e.n 2.:..;::-:cr:;::
tG ':est in :n..,:?ige.:, :~~ r:~:, ~~'_~~: .e'i:~t, ,:< 2 :~~:~;:
by J~e aut. ,C,llY, to \~.:.;a ",0 s""e.s,;, ,...,'"1 ~ra "c~s" ,:; ~.........~_,
or cause ~r.e ap~clr::l7'.er.t ':: 2. ''?ce!'./er ~L:e:ec:. ;:-e.:::
;.0rr1 all :he res:r:c:icr.s :.'"':""::see :'/ :;-,;s :r ~,""'?
2preceding 3ec:ion.
515
c::. ;21
?'~BL~C HCl~Si~JG
~
..;, ';on
-
"T:-:is Scc~ici"', shad let a::cly :G '"'":.:es~,"'":;; :ac: ;;;es
".~,2:-:eC: ':/ ~car.s ~ace ;cr :l"',e ;:~_-::~S2 ,:f ::r:'" r<',...,~
3~::--. ~ac:lities r~r CGr.1es::c ~a"'i.1 i2.::r :!~r:;:"2.r: .. ~.
::...:. Jr :ha :=ec:er2.! ~CL:s;r;g ,A.c~ cf ~ ~..:.3.
-;13tory.-~ .'J. ::"1_ ~~'je1. ~gJ;- ;. '. :~. .95':. ',:9: ~__.. 'SoU: --~-
-.::>1;'-;-, ::'1. ::S:3. 1945;~, .,:~, 15.<:::;:;:, :.~" -S.''05. ':J,:~
1 ~ :::! ::: ~;:~ta~;" Z.~,:;i:;''3:~l~ ~~~ ~.;~ ~~'.~~:~'~} ~,.. ~;;3_~" .~~ .'~~ _~ \-:~-~l!:~
:~:l~,"">lr,::: ~qa;:~ ...as :~'la;eC ':;'/:;.3. ::'1_ -;.6...-::
",,:;~.-.\s ~~'lc:a':: ':., 1. ". '-,a~, .']:;;- ~'l :.~, ac',,.~ ,w ;<-:. :~, ,",,11
::: ~': "C;;, ..;::.~';
~2~.101 False represantaticns ~o ':otain :cwer r~n:
;;-: :...ous:ng ac::cmmocations; ;::enait'j.-'/r~,:e\:-:r
- 2-,25 3 ~ai59 5:ater.l9(';\ Jr represer,:a:icn. :<;,'iC'.'-li,~,'; :t
:: :~ !alse, or Ki',cwingiy :ails to e'is.:~csc .3 ~2.:er:al 'a'..:;
- :,':e,~:: ::t:tai.'i a :C'-Ne~ ,-art for :i::::..:5i;-::; :3.-::::;-:--.:-,::2.
:::,~3 in -3. :C'N-tar.t hc'...:s.,'ig ::e'le!cCi.'s:-:::er3.l:!': ,:'...;r-
3:_2..-:: to ~r,is C,"'.2c:ar, :~a:1 the r:=:-::ai 5UG."1 ;:erscr, :3
'"=::";Ire-: to :a'l purs:...:a;'it to fecefal:r state s:a::..;:es,
:s:,~~'::::uie ci rents or re:as and iec:',.;!aticr,s 3S :8t8r-
-,:-~':: a......d fixec' ':y :ices;r.g authcr:;ies:r~2.:ec:::'..;rs:..;-
:;',_::: :;-::$ G....,ap\er, a;cresaic, shai\:e ':;~iit'J::i a ;7'::sce-
--2-2.:-':C"':;; the second :e-:;ree. pUi',is"acie 2.S ::r8viced
'- 3. 77S.C82 :r $. 77S.:EJ: ar.c sac:- $:J'::l false 3:ate-
'72:-; Jr repr9ser1tation cr failure to ~isc:cse 3. .~2.:efjal
'2.:: 2.8 aroresaid shall c:r.stitute :3 separate cf79:;sa.
_~,~;~ry.-~ '. :~. -;1.4S<!: 3. 1SZ, :.'1. ;->l}Q.
.....~ ~.
-..... ,
C';OP::!!"3t:cn :1 authcr\~ies.-
.:'.ny :'Ne J; rTICie i"'":cusing 2.L.:L-:cr::ies :-:'12./ .c:r.:r
::::9;a\9 wi,,"': ane ancrr,er in tr,e 8-:::8-r::S9. e:tr_er
:>_:~~,' sr :tr-;erw;se, ct ary or ail cr :i':9:r :C',',8rs '...., '1-.:.
::..;~:cse ci :iranc:r.:;, jr;c:ucing the iss:..;a("i:~ ,:1 ':cr;cs.
:~:-=~!'..:r9S, nctes or atr,ar obiica:icns ane' :::vinc
3~::";;:,/ t:iereic;: ::!ann:n;;: un:er':2r'\i;-;r;: c',vnir.,;:: ,:c,;--:'
::'_:::,""1;. :;:ers.:;,'i;: cr :crn;ac,ir,r; 'Ni;~ ;-:s:e:: ~G a
- ,:',,;sinr; :J;,::;jec: :r ;=...cte::s !cca;e~ ',';':~;--.in ,:--:e 3.rea-:,~'_,:
::-=~3.:I:n Gi ar.',icr.9 cr :'T1cre or sa'': aut:--:Grities, -'';'
,', .
~~~.- :'_~:,::;e. 3,:" 21:";;:--,:;:::" :;.a::' :'/ -'?S::'..:ti:~ :'~,;:.:;::-=
_, ~ 3L::t:cr::e ailY c:~e: housing al..;:~cri~,/ Ji a:...;:r,cri-
. ~s sc ~cininc cr :::ccceiat:ng w:tr. :t. :-: a:: en ::3 :e:...ai:
~es:Jec: ~o any Jr ai: such ;Jcwers. ,J..,,-,'/ 2-",:::--:c;Lt~es
,: -:::;; cr cooperating '.-'-lith one ar.::::~ei m2Y 'JY resciu,
. ::-s a:coir.t :rem a:;;cng the C:H''0;;;ss:c"ers :i sue:;
a'_::-:cr:~ies an e:<ec'..:ti'ie :ornmi:-:ee '.'lith ::'.:il .:C','18, :0
a::;: :n :,er;ai: :r .3-"':c;; a:":7"1or:ties' ','/;;:-: ,.escec: :c an:,' ::r
:: ;::e:, pC','i.,:::S. 9,5 ;=...escri':::;ec: ':'.i
, .
'esc!:..;::cr:s ':: 3:';C.;
:::_.-,:...:::-:s.
~.L-:'.' ::<...;r.:j ;":':L:3~.'ig aL.;:,-:':,':,'! ~'?j =',:2-:-,:: :0.....
: ~~~~CS:~,i~~;:~.~;~'~~:~~'/~;~~,~,'~~~~ ~::3~.~. :~~,~:. ~:~':~;'::;~
:~ t,\~.':CC2; ecec.,::r?::,:r, ,':c: :: ~ :.-::, ',,,';:....,.'=:;:3:: ::
:": ~::3:r ::r:,:;rar:;s :C::3:2': '.'I;:~,;'" ::--,e ::'~(';:'/ ::;~ Jr
:::: 3c:?~t :01..:1','.' an:: ~;''j :::'1 :-,::"5".; 2''':~'-;C~:''f .~a~i
-=~:-=r ::-:0 S:"':C.i as;rser;-,e.'it 'Ni:~ ~eSC'8-:: :: ~rC!e::3 :;r
:"::;ra,"7",S b:2.:~:: ','/:t:-:I;'; \:,e :::::1";:-::-/, :r::,',':se'.:: ::;2:
::: .';er:;rJ.r,te'::: an aet~crity '...;~,:e'" s. ~2' _:8 :"7";;'1 ::;'8-
-~s~,:e-':! :0 cr ~xer:::s~-: ':y a :CC31 :;C'a,....,!,~; ~'-,~'
_-:3, s...;c~ a:;re~r;;er1L
':;;",;;,_::
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~~.'-S:::,: 23. :~_ ~~.'J2
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'-7 ':,;::-,::0 3c.::;:...:ire ='1 ::--2 e:>:e,::::;2 :; :.-,~ :::,.,,.~~:' ;>.---
...;....' ~,-~,:l,... ,,- ""a' "'---...-' N:::::,- : -2".' -
'-,,;,~,~:~',,-~" ':; :'_~;:'s~s~-~~'~'~, :,~,S :'_~:'~~:;;.:;c..::.~~~
2<.:::::::-- :'/ . :: 3. ,-eS':iL.;~:'::"' :eS:3~:r,; :.-:;:': ._~;.:-:_.:.:..
:::- :~ ::-e --::2, : "::er:'/ ::es::~-::-::s :~,e;e'rs --=:~:;'~"I
~sr s.~:,~, ::,,:,'::52S. ;.~ 3.'..;:'-c~:" e:,-='::~ ~
:c','ar :: :::::-,:,-~-_: ,:0:-:-.2:.... -r':
::--e 7ar:-er :':'.
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2:--::::':':'::::;:- :: ?'i,y hC:";S,:-;: :I::e::. 3..~ 2.'..;::-:,'::'.' ::,.~
:2'~,=: -,:: ::is :.=:-3.:icr, ::--~ -e,=.:::iSi':,: :.
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2Z....;2::: :',' ':. ":'.i ae~:-:G;'::'." ,--;a'/ :55:..:e 5..::'-- :',:-=~ ~
:.,:::-.::.-,:....;;es 2.S : '7'.2.y :a:.,::~~,,_e ,-C,:"::.:-; :S:-=-:_~
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:940 Suep. 71CC(J..~1
i-t:
, -.~~.
~e debentures from time ~ .
or its corporate purpOst..~.
refunding debentures for
":ng debentures previously ':'
71ay issue such types ~
:ine, including debenturlH"
,terest are payable:
income and revenues cA
with the proceeds of St;C~
;roceeds together with a
nment in aid of such pro}.
income and revenues cA
projects whether or net
:r in par': with the proceed,
nerally.
':e additionally secured by
any housing project. prcj-
authority.
cners of an authority net
ebentures shall be Iiatl.
by reason of the issuanc,
: other obligations of an
:5 and abiigations shall so
t:e a debt 01 the city, tr.~
it:caJ sucdivision therecf.
1..;,"',1'1, nor tr,e state or an:1
,lail' be liable thereon, I'1Cf I
entures or obiigations 'Cd
-Gcerties other than thas,
;res shall not constitute ar:
,ing or any constitutional
~ation or restriction.
1010 Sueo. 71CCiJ.y)
PUBUC HCUSiNG
.'
;;. 15 Fcrm and .sale ot deben~ures~_
~1. oecentures CI an a~tho.rrt'! S"2..': :e aL.::hcrized
(1) resCiL.:t;~~ and may ce i5-3L.:eC 'r: ere ,,~r :'7'.cr:::
IS nd sriail cear SL;C,' c:ates, mature 301 S~C:i ;:fi:es,
a . t. . . I.
average In eres, <:':5:: rale net .:r :ec:era SUCSi-
a~ exceecing. the rate es~at:lishec 3.c.::r:ing :0 s.
~ be in SUC:l ~encrT':inat:cr:s, te ,r: S:":C:1 ;c r:;"] ,
5."'" en "'r "er'ls';:>r;:>r! -ar"'/ 5""'... "'-...'.o,........r: "'r
, (ccu:: '..... I :;j ,~ -....,.... '.. .......', '_";'~.~'~t.... '_'~
.~lratICr. pr,I'/lie;es. ha'i.e s:..:e:": -,an,., or :r:cr:ty.. ce
-1t9S 1,>1 'n 5;..C.1 manner, ce ca'yacle :n .SL;C:l rr:eClum.,
'...,,-J " ,
p.- ,ent. at SL:ch places and be sL::jec: ~c SL.;C,'
!oF- par; rederr:pticn, with or without ;Jrerrin..:r:-:, as SL.:C.1
'li., luticn or its trust incenture may pr:;vice.
)./;;~) The de,:~ntures may be sold at :<..:ciic sale :'e!c
:~'~';+~(nolice ~ucllshed once at least 5 da~/s _:,,-:cr to suc.'
}1;-= in a.r.ew;i:ape;r h~~i,;g _a::l~e;~r~!i~~~C~~~2._:;e.n in ;~~e
',;:'-, tit and:n a "r:anc,al "'- ,/s~~f--e, r"L:.....,;" '_'4 ,n .r,e ""''''1
::'~~"'d c:'icago, IIIir:ois, or in tl":e City of Ne'N '(on<, New
"/"'Vorlc:: howe'ler. suc,~ deb:r.rures .11a:/ :e sele to ':'"':,e
. Ffderal GO'ler~ment at pr:vare sale 'Nlt,"':OL.;: 3n} PL.;CIIC
~er1isIe~l..een~'/ent an ~I.'~r 'I' an 's"" ,.~ ...i '""'~;-'~"'" '"-s
(~) n <I. ~ , ~ '_, ''', ' ~ ~'-:'o:: ~I__~'::,.':_",::
i public sale .:rcc'uces no :IC, ,0'- :r. ~~e .s', ~~: .3.li :,,"=5
ff(8lVec are reJectec, the aL:tnor:ty :s aL..~:-:cr;;:sc:: :0
"..;otiate ror the sale of suc~ ceoentures L:~der Sl.:C:i
rales and terms as are acceptable; he'Ne'/sr. ur:cn their
J&le, the State Board of Ac'mll":istraticn s;:ail:3 t,elif:ec,
J(Jd no suc~ cones shall t:e so sole cr:e:i'.'eiec on
l:ftmS less favorable than the terms cor.tair.ed in ar,y
bids rejec:ed at the pue!ie sale thereof, or the terms
eenfained in the notice of public sale if ;;0 :ICS '.vere
/'OCsived at st.:ch pUblic sale,
(4) In case any of the commissior.ers er ot7icers of
~e authOrity wnose signatures appear en any deb en-
IurosQrcouDons shall cease:o be such c::mr.:issioners
o(off1cers berore the de!1t/sri af s"c;, ':e:e~t:..;res, st.;c:'
'~nalures s,";811. never-hele's3, i:e 'lalid ar.c s:..iffic:ent
lor ail purposes, the same as if such commissioners or
olticers had remained in office l.:ntiJ such ceii'/ery, Any
provisicn of any law to the contrar/ nct',-\Iitr.s~anc:ir.g,
In'l cebentures issued pursuant to thiS chaeter shall be
fully ne~otiable, .
(5) In any SL.;:t, action, or ::r::ceedincs invol'linc the
vajjci~1 or enforceability af any cet:enture or an author.
itycrthe security therefor, ar,:1 SL:ch dece:::ur-:! .ecit:ng
!.n substance that it has teen issued bv 11"'.9 :::.:..::~cr:r/ :0
!id in finar.c:ng a ~,cusir.g projec~ to '~r-J'Ij:e :'Neiiir;g
!CC~mmcdaticns fer persons of low inc:~e shall be
ccr:c~usjvely deemed to have been issued :cr a :,,:cusir:c
project of suc" character: and said project s;;ail oe con:
elusively deemed to have been planned, Icca:ed, and
constructed in accorcance with the cur::osas and crc'li.
sicr:s of :r,is chaetar, " ,
1. ~1!~,ryJJ.~1~5, ;". ~7}ai, '937"; G:3l '9':C 5Ut::C_ 7'C-c(:!.~;;~,;, ;,.,. 73.'5~
C:'. ~21
(2; iJ cove::2.r.t ~;:::.:t':s: :,ecgmg a!i ':r ar,:/ par: -:f
its .-er.:S, te'?s arc ,"e', ~~'.:es, :,- 3;;2it':-s: ,T.cr:;;agil":g ail
C~ 3r:~/ .:2:::i Its "~aj:" :e~:;:~ai ,:ro:-:.--:;. ~c 'NI"::C:; it3
:;;~~e~rc~t~er :~~~:;;~~;:i~:.=-;a~~ r :;~~~~r,~~; a~:;i:~'-~t~
S:.1C:"l '-e'/erues :.- ;:,-'::.s.""':",I: .: :e'/erart 'NI;~ ~es;:ec: :C
iir.iitat:::iS (;,1 :ts -:;....,;3 ': S2 ease s,-:: :r~er.'iise :::5-
;:cse:f a"1 hcus:,~; :":.-=:: :" ~,",'/ :2:-: ~~-=reGr: ar-:: ~G
C:'/er:a~t 3S to ',-I{,"'a: :"-e,",:- ~::;:;cr2: :-=s;s~r,:t:ig2_
l:c~s ,""':"'.ay be Ir.c:..:r~e-: :~/ 'r,
(:2', To cever.ar: ~2~: :.-:- :e-:-:n:..:r~s:::e is:;;:..:ec:
arc as :0 ~he iSsL;2i.ce :' 3''':::-- :e:er.t:..:~=s:r: ese.c':I:r
ot~e:Nise, and as:o ::-s ..:se 2,-: ::s::cs::icn af the ,:rc.
cee:;s :~erecf; tc:":',':: 'c- ~,-,e re~i2'::;",er,t oi Ics~,
':::es~~cyed cr rr:u::;a:ec: :2:2,-:'_res;:0 ::'/er:2.'":t ag2irs~
e:~e:c:,~,g :....e ':~e 'C," .-:; ,:=.; -e-: :r ::3 :e:';;:1[..:,--=s ':.-
interes:: ~r,e;ecn; 2:--:::~: -:;::::.s- ::-:e de:ert:_;res, and :e
cc"e~ar: fer thei~ -e.-:e-::;c,~ 2;~C ~J ;:r:'..:ce :r,e ~e;:-7',s
ar~c ,::rciticns the"s:::.
("
-)
7: C::"'9:2..":. 3'~::e:: :: :~e
:~::2::C(';S :::,~,_
ar:: :ees :0 :e
421,16 Provisions at debentures and ~r~s: ir:den-
tureS._!n c.::nnec:icr. With the issuance cf :e:entures
Or :he incurring 'Jr cbligations under leases ard In order
:0 sec:..:re the payment of SL:C,' ir.dentures:r cbliga.
ticns, an authcr:t,!, in accil:cn ~o its ether .cc''','e~3, shail
,'lave power:
(1) To pledge all or any part of its ';jress or ~et rents,
gross or net fees or gross or net re'/enues to 'Nhic.1 'ts
nght :hen exists or may therear.er come inlo ex:s:ence.
tai~e: in t,";is ,:.-1a:"s; 25 :: '-e"ents
C.1a.-;;ed ir: ;~e '::e-=.:;:~ :' ~ -:L:s:,~~ :"::-?:: :r ,:;:.:_
9C:S, :.ie ar:1CL.:r:t:: :S "2$,-=: e3:,~ /ear:r :t,,;e; .:::9;:ce
of ;ir:-:e :'/rents, fees 2,-: :~!-e" -a'/er,ues, ar;c as ~o the
use and "dis::::csiticn :0 :9 "":':a:9 :...:ereof; :0 create cr te
au!~cr:;:e ~h'e ':~ea::c:; :: 3:-=': =. ':.;r.cs ',:r '7'::;eys r,e:,:
rar c:.~_s;r'..:cticn :;::e"3:~; :OS;S.:9:[ service,
reseries, or ether :L:r::ses. =.,~::o ::cvenar,t as to tr,e
use 3.r.e djs.::ositic.~ :f :,"'9 '7':"'9'/S ;-,e!c 'n Sc..;c,~ fL.:l":cs.
(5} T:: prese,-::e :re :-::2::..~e,:1 any, ::/ '.'Ir'.ich the
ter;,;;s 'ct any C:::n~;ac:,',':.~ :.-e -:cicers:r casenru.-es
ma'! be amer:ded:r a:::~::a:e:, ::;e amCL.:nr cf deber..
tures tl":e holcers or wr::c,~ ,~'':S: ccnsent :hereto, and
the rra....,-;9.- 'n wrici S<';:,- ::;'$e-~ 'i12:/ ':e ;i','en,
(E.', -: :0'/8'.2.-: 2S:: :,"',9 _~~:: 3.::/:; 3,;:1 ::5 ,-eai
or pers,:nar :'-0'::9;-::'-; a;,~: :: ::'. 9ia,-:t as >: :~e :nainte.
nanca of its real ar;e ~9.-S:,"'2: :~:::e.'\/, ::-:e replace.
merH t~erecf, the ir.sc.;ra....ce ~: :e :arrie-: :,"':erecn and
the~.:se_and dispcs;:icr-: :~ :(,;S~_;~2:-::e :::?r;~/s,
(i) : 'J covenant as t: :,~e _.;,;~s, Ila:::I:ltles, pcwers
and c:..:ties arising :";::or ::-:e :i9ac" b:; it cf anI cO'le-
nant, c:r.Ciiion, or :::Iig:=.::-::;, 2.-:':: c:verar.t ar:d pre.
sc:-ibe as to e'iems:f :e:2:..::t :;,~: :ei;T15 anc ':::nCiticns
upon 'I/.'iic:-: any:,- 3ii -:: ';s:e:e.~.:i.:res:r c:iigatfor.s
sha:1 :ec::;;e or iT:a:i ':9 ::=':C:2-2: :~e ':~::;e T.ar~r:t'!.
and as :c tre ter~s :;,"': :::-::::,'":5 :'::r:r.N~":~c~ sue:":
dec:ara~cr: ar',d its :::rse-::..:e.-:es ,~ay :e ','is'i'ied. .
(8, ! C 'lest in a :;'..:stee :~ :1'_5:ee5 or :!;e .-:cic:ers ::i
debentures or any .en::::;.:::- :: U1em Uie right to
enforce the -payrr:er.t :f :,"',e:e:el'.~ures ,:r 2(,;,/ ':::::ve-
r-:ants sec:Jr:ng or ie,a::r: :: :"-9 :e:er,twre5: :0. 'I'~s;: ir,
a trus::s'? ::r :rustees ~~e -"'s-:--.[. :... :,~e 9'1e:,t:; a :eiault
b'y sa.c' ::I' 't"or'.t'/ '0 '-:..~ ...-...--- --'.-'" anr' ,-"" '~"'Q"""~
I _'-'" ",' _c:,-.,~ w~~~'::~~._" I~ ~~~. .~~_,c;:I._
and "arage ar.'J ,-;c1_s;,-:; :-::'9:: :-:a:: :,"":e~9'::. :=.:r,j:o
~~~e~~~~~ef ~~~t,~ ~~~~~'~.s:'~~2e:s:~~-~a~~~~~'~::~~:;'-:~: :~.~:~
me'nl ct :,1e 3l.:thcrit',' '..;::,,": 32:: :~'_s:ge::O' :'-:'.-",::e 'cr :he
powers arc G'..:ties ':: :=. ~~'~s:=e :- :_-...;5:ees 3;:: ::: ::rr:it
the lia::liil:es :herec;: 3,-:: :: :-:, :e ~;-.e :8;"-:;5 31:': ::or,.
ditiers l.:con wnich tre :~\..:s:.s-=:.- ~.-'.:stees::r :;:e ,~cieers
of de!::er.ll..:res or 3r;:/ _:r:::r.:c.-: :~ :hern ~a:/ er.tarc2
any covenant or .-:~ns 3ec:..;,-',~,;: or reia::!"_,:; t'J the
debentures.
517
I
Cn.421
PUBliC HCUS:flG
.=.3. ~ 997
19\ To exercise all or any pa,1 Jr c::mbinaticn of ir;e
pcwers herein granted.
Hislory.--1. 1f.i.:.'l. :;"~81. 1937; S:i.. :,,4(; Sueo 7'c:-c(J<Jill.
421.17 Validation of debentures and proceedings.
(~) A housing authority shall ha'/s :he rignt, if it
deems it expec:'ient, to derermlne its authority to issue
anv .:ebentures, and the legality :)f ail proceedings .'lad
or'teken in connecticn therewith, in the same mar.ner
anC tc the same ex~ent. except as ::therNise provic:ed
in ~,'"i:S sec:icn, as pro'/iese in ;::-,2;::2; 75 for ~I":e ceter.
minalion by a ccunty, municipality, taxing district. or
other political district or s:...:bdivision of its aulhor:ty to
inc:..;r bcnded debt or to :ssue certificates of incected.
;less and (li the legality of all proceecings hac: cr ta:",er.
in c:nnection therewith,
(:~ 7Me petition to vai:cata suc,' cebentur'?s, and
the ;Jrooeedings had or taken in connection therewith,
shail:Je filed by the housing authority in the circuit court
for the county in which is located the city for which said
hOL:sing authority was created, except that wner.e'/er:t
aeeears that a housing authority is empowered to fur.c-
tion in more than one county :he circuit court of any
count'l in the whoie or any part of ',vhich the housing
authority is empowered to func:icn sliall have juris.::::ic-
lion or the cause in the same manner as provided in
said chapter whenever a municipality, taxing dist~ict or
other political district or subdivision shall extend into
more :han ene county.
(3\ The notice :-equire~ ~y s. 75.06 shail :e
adcressed to the taxpayers and citizens of the city for
whic:"1 SUC:1 housing autheri:y r:as '~een created alid or
the:ounty, or counties, in the event such housing
authority is empow~red te function in more than one
CCL;r:~:/, in the wi"':oie :r any par:Jf '.vnich the housing
authority is empowered to functicri; and by the oubiica-
tion of such notice as recuirec bv saie chaater 75 atl
taxpa~/e~s and citizens at such c:ty and such county or
eau,~;~es, as t:-:ecase ma'! c'e. s:iaJ[ be cons:deres as
parties Ijefendant to such' pr:ceecings, and the circ~it
court :n which the proceecing is brought shall have
iurisc::ction of aU of the same as if the'l were named
defer,cants in the oetition filed pursuar.: ~o said c,"',a:ler
and ;::ersonally serJed with process.
(...1'1 In the event no appeal is take.'" within the time
pr~s~ribed by said chaoter. or if ~aken, and the decee
'/alicating said debentures is a:fir:-ned b:/ the Supreme
Caur:, the ,decree of the circ:..:it CJL.:rt va:idating 2nd (;81"1-
firmir:,: t~e issuar,ce of the ::eber.turesJ: the :;sus:n:
authc~::y 5,1all be fere'/er eere:usi'/e as to the vaiid:t:/ ':~
said :et:entures against L~e housins authori:"! and
ag3i~s; 31_1 :ax:Jayers and c:::zer.s ':if :~e .city ;'Jr Nnic.';
saic: :ic:Jslng authonrj 'Nas :~e2Iec: anc ,or the cocni'/ Gr
coumies in the whole or :Jart of whic.' the r"lOusing
authority is empowered to ~unction; ar.d the validity sf
said debentures shall never:;e cailed in c;ues:ion iI", any
court in this state. Debentures d a hcus:ng au:~,cri~,/,
when issued 'Jnder the prOVisions of said ::hacter. shad
ha'le siamoee.! or 'Nnllen ~hereen :Jy t~e ::;rcper Jffic2rs
of the hOUSing aUlhority iss:...:ing :he saine, the 'Ncr::.:s:
~Validated and Confirmed ::y Cec~ee of the ere:...::t
Cour.,~ scec:f\/ins; :he date -Nr:en 5L.:Ch :ecree 'N~S rer.
jereC 3~d :r,~ court in wnic."i it ''vas re:idere':,Ni'.:C:;
shall :e s:;...,ec oy the cier:", of ::~e ::;::...;it :::::ur: :r. 'ti:-!C:-:
n"',e jec.i'?e 'Nas fer.c::eree. 'Nh:,:,- er,:'("'/ .3,~aii :e ::';:;:i:"121
e'/:ce."'1ce:;f sa:c :ec.ree :n ai"/ :::::1..:"-: ::"1 :~:s 5:2:e.
HlsIOry._s .-; ':~, :7~8~. 1937; C':;... :..:.:: :~::, ~':':,:.:::Ji.
~21,~3 ,=lemedies of an obi;;~e of autnor:ty._..:....,
obligee :f an 3L.:thcnty shail h2'. e :."'1e .r:;,-:; :r, a::i:icli ::;
ail o~,"'1er r::;;h:s whic:l rr.a~l je::,"":;e~re': on 3:...:e~ :::~:I'
gee. s:J::jec: OJ;iy to any c::ntrac:~a: "es:~:c:iCi'.5 :ir;c::~,;
~cc,.... Sl..:::;~ ooli;ee:
\ 1) =/ i"an c:a:"1i us. suit. aC:::::::r pr:ceecii";: at '2.....
cr Ir: e:;uit'/ :0 c:Jr:ipel saie: 3.L.:t....snty a,....c the ::~.r:":is.
siere,s, c:f:cers, agents or eJl"1::o:;ees :heres: :0 ~er.
;:r.'71 eac."'1 ar:: e"ier/ term. :rC'i"s:cn 3:i::c'.;e,~2~: ::~..
tai;:e:: i.1 a.....y :::ii;rac~ af said ~_::-cr:ty 8:th ,.:r ~c, :,~e
::e:;efit c:f S'JC.1 ct:ligee, aii: te 'e':'...;:.e the :::a.--:':.~; cut
of an:; ::r ai: s:..;c,~ :ov9r.2;::S a,-: ~gieernen:s :f sa:;
au;:r,ority aiid the fulfillmer-:t ,':}f s,: :\';:185 :mcese: ''';:::i
said autr,or::'/ ':'/ :his cha:::ter.
(2) 3y 5i..:'it, action or ~rGcee,::,....g :n ec::..:::/. ::: e!'":;.::n'
ar"1:/ acts:r ::,,:r;s 'Nhie:1 r7:a:/:e ...: I.: a'..,,':...: 1 , ,:;r :,"'9;:::2'
tion of any:t the lights of s:..:c:,::':;ee of saic 3:,,;;:":cr:ty.
Hls:ory.-s. '3. :~, ':",,81. ~9:i7; ::Ji.., :9.:: 3~::, -'::,':<::'
421.19 Additional remedies conferrable by aut~cr.
ity.-An a~:~erity shall have ::c,'ler :y its resciutkr.,
trust incer,ture, lease or ether ::n;rac~ ~o :::.r,fer t..:;;::n
any obligee halc::ing or recreser.::,-; a s:::ecifie.: ar;c:.'."'.:
in ceber:t!..:res, or hOIc:ir:o; 3. !e2.se, :~e ~:,;,...." :1" :=,:::::::-::"1
to ail richts ~'''Iat mav otherNise :e :Jr,f-=r~e':. ~:':" ~t':a
has:Jen-ing cf ar: ~'/ent of salault ::.s :efire,: :n 5:..;::"l res.
oil.;ticn or ins~ii":r"i1e:lt. by siJit, action :or pro:::ee::~; ::'1
a."'1/court :of cCIi"l::etent jur:sd::::::-'::
(1) To cause p:Jssess;cn Oi 3.."'./ ~:'..;sirg :r:!2':: ,:;r
a:iy ;;art :he~eof to :e sur;er,dere: ::3r,y 5ue~ :::;;9o?
12: To obtain the 2c::,:i,'l:r1~:-: :: :: r~':2i'/-=~ :: 3,....:r
ho~s;r.~::r:je(::::'1 said a:..:tr,ority' :.- any' ;:2:1 t,"'1e.-e:f ar:
ci :11& renlS and ~r,:;f:ts therefrc~, !: S:JCi'. rece";8!" ~d
ace,cintec:. heJr Si"',e ....ria'l e,"!tec ::.:-: :2.,~e :QS32S:;:::;n:!
SL.:C,'; ,..,OLls;r>; ;::r:je..::t cr. ar.;; .::a-: ;i"',8:'8C: .3.r:c ::~:3:~
3r"1d rnaL'lta:~ same. and coile:: 3.r.: ..e':2~ve a:: :e'?S,
ref',ts. revenues. or other cha~;es :~ere3f:er 3...:5i,....;
therefrcfL1, ar:c shall kee:: suc~ -;or.8'/S in a 5es3ra:e
account or ae:al..:r,ts anc:: a::;::: Iv l1'"-:? sa,C;;e:.--; 3.ce:r:2:~::~
"I,.'h '''e "''"'',.~a';~n -' S",.... ~u'th~.'.',' a'" 'n.::. -'-'.": S,..,;;!,;
, "", v....,":;:' l.u VI c;:. '-':::l '_"'.,' "'" '. y",U
cires~.
(3) Ie re'::;uire said au~...,ori:y 3rc the c::::r1~:ss:cr'
ers there,]!:c aceJL:n: as!l:t arc ::-e:" ',':ere :~e :~'",;S:9~S
cf a:-: ex:::ress ~r:..;s:.
;_H_i~:.OfY.-S .3, :~. ::"35', 'j:~::;... ~:;~: ~_::
~. .A"....A ._ ;;;, ;:>.
..!.2~ .21 Aid from Fecer3i Gc'.'~ri'.JI"1e!"i:: tax '?:err.::""
tions.-
(~) ii':, acc::;:cn to :h,e ;:c'/.'e~:3::."1~e~:~c: ~:;,~...:;~
authority ,:y ct.'ler ~rovISlc~S of (;-:5 ,:i'12.~:er, 3."": 3'~':'''..{
;"/ is ""r."J.....o".Q."'.... '.., ber',"'''/ ~o-::" ,...~ ::>--Q...... :~~r,5 ~
~ h -~.. ~ ..,";-' -~ '~_. '_"~; .~;.,.-.~;. ;.:>'-;~~-~. ~:;;\;er.1"'
..I.,er .:na.;c.al 2S'::"::'lan<...~ ,r"", "'_, __~,_I, .p!
ment IO~ "r'~ aic"" ~n'l -^,,~:.,,~ -.-,.::.r' -",~_:.... ,:::; J,~
~~:f~j};f~li~;!~~~:~,~:,~:?Iij~~
-. Q
o,~
~~
"
1=.3. ~ 997
:-:ient ,:r :es;;30Ie.
::-:2::er to a:";lhcr~:e ::
';~:i':;;S :~e:es3ar/:r:..o-
r;r ecocefation o't ~re ~
~a..<liig. eons;;t..:C:iCi,_ _
~cuslng crcjes: :'1 _L:
,'2) In acciih..l ::
j'..:t,'iorit,/ oy s:":os<::c:,:-
,:~aCler, an authcr;:'. ::
:c::ect ~ar.ts or c:....-:,
,-eceral'"Jovernme!'":; _
~3:;9 (?'..i:).:.... ,\Jo. BE':
',,'i_!:e'::! Sta:es S'~:~-
:e"ie!c:,'"i'.en(,Ni';;:,- :.
:,"'e maXI,"7',um ar."1C'...:i':
:cse ci assis;:nc:e-:c:
:,ice he'..:sing an-ej ;e:;.
ar,c eicenv ,:ersci'.s
'. (a) ~ous:r,g a'..lt~:-
3.r3 aut,":cr;Z9C: to ::'=:
. ,.
::iier reriT:S ,cr :r:Ce::s
,T,ents, contracts, cr ::.
t.,;nited States De:a.--
C,'!elccment in cecc,
;:l.:,"ccses set forth Ii ::--
\0) I n:s :::rOV:Sicn .
t~e ~Icer:y is. cum:...o;a::',
,i','e."I:c :-:eusing a~:~.:.-
~:3;ra,,'i:ec: g~r,era:i',' :
F10nca relating :0 :si:...;~
:'.;~es, and ether ,-;;e;,"',:
~iS'J t~ :1o.using aut:-,:: r':
.1:c;=atJon in prcgra,-s :
cl :~cus;ng and LJr:a~ :
(31 :t is the lec:s:::.:;'.
c! ,A:c'..;s;r,c aL::,~er::J=3 :
~:aC:ficaify ar;piy ,: _
'~~:ar :his S2C:;::;"",.
li~,I~~~7..~~~ : ;~.;.~~.:. -~:.
': ~21.22 Re':orts.-':'
U',alll::", ''1i~h "h'::'- =:.....
pr~a~'i~~ \J~a~ '~"'~~---.::
I " - J - . ~..... :;",-
l'S,ere:;,-", '0 $' ,-'" :::'--:.
1$ :1 ::ey;....:,s i:~~'~$-S-~-~.
%5es :;1 '''',5 :~a:'~'
"'10"'" -1 :::: ~~ -":
-;" ~~,1,2J l..ia:::iiiti~s::
~,~::~~~~~~;~y~-,:,
~SICies-_;i'~l...:_ ~ __--
, ~F11. ,.-"...:1___
~<,~.:~;~~.-. :2. :.~
':~~l_;", '21 ., ~
;i.",.,.;. ",.. Or~3"';-"':-
~tF:;~~bli:~:n'=i,t ~=.~~-:~-:;~
.- c~.. ~~s'c:,;::"''''r--''''''''::'-'-
"( 1.'r~~1{,~ ~w :f"",,,~:~' ~.,::-.: -
~~~ -_",;:;,-0>,....-
~~.:~~ :I~' :~~~;r~~~~;~,~~.
F,S. 1997
-...
f, the circuit court in which
~Ich entry shall be original
''1 court in this state. ~.
~03uCQ. 71COIJ,01)).
'!~. .
)bligee ot.uthority,....:',\;;
3.'Ie the (lgnt In addItion to
? conferred on such Oblj..
3ctual restrictions binding
:tion or proceeding at I~~'
uthority and the commis,.
mployees ~hereof to per.
;vision and covenant co~
j authority with or for the
a require the carrfing 01.1
and agreements of said
i all duties imposed upon
,
?eding in equity, to enjoi~'
be unlawful, or the viola:'
obligee of said authority:";
jol.O Succ. 71ccr,;'~CL .,,'
~s conferrable by author.
power by its resolution'"
:" contract to confer uPC~
:nting a specified amount'
3.59, the right, in addiliol1....~
9 be conferred, upon Ihe~'.
lit as defined in such res."";
action or proceeding rn'"
:tion: ;:..~
JI any housing project ai' ,
~red to any such obll!;ee:-:
""lent of a receiver of a~Y'
.'/ or any part thereof and
,'om. !f such receiver ce"
j and take possession. of
.....
Jart thereof and oper.l~ ,.
:ct and receive all fees~:.:
~rges thereafter arising"
h moneys in a sepa~a~~~'
~he same in accordanc..-,,~.
.10rity as the court s~J:
"bot:
ty and the commissjon..~..~
d they were the trustees.
;";;-
.,
g40 Sucp. 71CC(;3.~dl: s. as. '^i
.~';;'.!'.
'.
overnment; tax exemP"' ;..
.'~::h
~rs conferred upon a"..~.'
tl",is chaoter an authOr.
ney or accept grants 0'.
:l the Federal Govern- "
.g project within its area ;,.
;e or manage any hOU"~:
ructed or Q'.vned by lhf :_7,
'.....
:se ends. to comply W1U.'.<;
such trust indenlures~
be necessary, conv~
~1997
PUBLIC HOUSING
C:" .::~
~jenl or cesirabl~. It is the purpose and intent cf this
d1apter to authOrize every authority to :::0 any ar-: all
~ir.gs necessar; or cesiracle to secure the rinar:c:ai aid
otCCoperation or the Federal Government in the ur~cer.
taking. construction, maintenance or operation or any
hOusing proje~t. by such authority.
(2) In acdltlon to the powers conferred UCC.'i an
autrlOrity by sut:sec:lcn (1) and other prc'.'is;cns c: ::-".IS
c.il3pter, an authont'j is empowere-: to corrow mona:; 'Jr
acc!?pt grants or other financial assistar.ca from ~r.e
Federal Governrr:ent under s, 202 of the :-foL;sing .-1c: of
1959 (Pub, L. No. 86-3(2) or any law or prcgram cf ~,~e
united States Department of HOUSing, and U,:an
ceve!opment, which pro'/ides for cirect fecara! loa:--:3 :n
!t1e maximum amount, as deiined :herein, for the:'Jr-
pcs~ 01 aSSisting certain nonprofit corporations :0 ,:i'C-
vide housing and related faciiities for eic:arly fa~iiies
and eiderly persons,
(a) Housing authorities created uncer this sec:ion
are authorized to execute mortgages, netes, bills. or
other forms of indebtedness together with any ag...ee-
men IS. contracts, or other instrt.;ments re~uirec by ::--.e
United States Department of Housing and Ur:an
CeveJopment in connection with loans :-:-:ace far ~r-.e
purposes set forth in this subsection.
(b) This provision relating to hcusir;g fac:lities :cr
~e :lcerly is cumulative and in acdition to the OO....I.:;:rs
given to housing authorities under this cha~ter. All .;::cw-
.rs ~ranted generally by law to housing authorities in
Flanca relating to issuance of trust indentures. deten-
Mes, and ether methods of raising ca~iraj 5,'iail ac;:;y
also to housing authorities in connection 'Nith their :ar-
lic:pation in programs of the United States Department
of Housing and Urban Development.
(3) It is the legislative intent that the tax exe~c::::n
of housing authorities provided by cha;::ler ':'23, .s,~ail
s~edicaily apply to any housing authorit:1 ':re2.:ed
I,lncer this section.
MIIOry.-S. 2,. eh. 17981, 19;37: CGL 19405\):0. rCC(:l-if}; 5S. t. 2, :.".
'1.1~7; 5. 7, Co". 73-165.
421,22 Reports.-At least once a year, an authcr;ry
Ihall file with the clerk a reoor! of its activities tor :he
preceding year, and shail make recommendations with
t1lerer.ce to such additional legislation or otl-:er ac:::n
lS it deems necessary in order to carr; out the .c'...;r-
poses or this chapter.
ItIIOry.-$. 22. C:1. 17';81. Ig;37: C.3L 1940 s..cc. 7~OO~:l-,;;:.
421..23 Liabilities of authorit'l.-in no event s.':ai!
the liabilities, whether ex contractu or ex delic:o, cf an
luthority arising from the operation of its housing ;:r:j-
~.s. be payable from any funds other than the re~:s.
ifes .o~ revenues of such projects and any grants :r
Il.tslc:es paid :0 such authorit'l bv ~he ;:eceral -:30'l~r.~"
~nt. ' ,
;:tOry.-i. 2;3, :.~ 17sa~. ~9J7::Gi.. 'g-lQ S"CQ, -:-~CCIJ.~~,:;, 7 ::, 2:::~,
..21.24 Organization and establishment.- _.~~
~tablishment and organization of housing, authori::es
S:e slale un~er the pra'/isions or the HOUSing Aul~cr:~
ar:.s Law of thiS state, together with all ~roceedir~s.
and things heretofore undertaken, cerformec: or
done .vilh reference thereto, are hereby v.aJicated. ra',"
tied, ccrfirr:ied, ac:prc'/ed ar.~jec:a;~<:: ,e>;ai in 2,:
res::ects. nctwitrstar.c:ng a;.~1 :e!~c~ ~r ,;9-::'..::2.; :'.'
therein:r Sr',Y 'Nant cr s:atut.::r/ 3.\"';,l":or::,/
HI!tol"'f,---S. ~. :;.." 19S~~. '9Jg: :::ii.. .;4"; 3~:::, 7~::\;'J'"
421.25
Contracts and uncertakings.-.-1::
~rac:s, a;reemer.:s.::::;a::crs. 2r:d..;,;C-::.2.:";:L:';s :;
Sl.;ch hc:..;sirg autr-cr:::es :;er9::':...e e:-:9':': 'r:: "9=.:-
irg:o fir;ar.c:ng or a:c:r.; ir ::-,9 :e'..eiq:r:'".9:-:. :::-:5:;....::.
ticr.. j,",ainte::ance.:r :::eraticr:, :r any ,-:cusi....:g ,:r-::!e-:::
or ,:rcje::.:s or to cbtai~i~? al~ :.-e;e:or. :,r,:~. :,''''e l.."r-:::e:
Slates L..e~artmer.t or ,~cusir; ar,e :...r:a:::e"/9:'::_
r.:ent. irc:ucing. withcu: li~ir:.....:; :"~e ;~~er2,:r'j :1 ::-2
fcrag-alIig. !can and arr.:...;aJ c:......:r:::..::icrs.::,'::r2C:S =....:
leases '.v:tJ~ t~e Ur:ite.: S:at9s : ecar::7.e~: :, :.-:0 LiS..- :
ar.: Urtar. :'e'/elc=r:;e~:. agree~e:itsNi::-'~''';:;::::2,--:'
ties or ctJ-:er .:ublic bc::es. ir,.:;'..:::r,g ~:-:cse '/li";ic:-: a.-~
pied,;ec :... ar..::hcr:ze-: :: :e ;:::e:;ec Ie :t'e :rctec:::,-
cf the r.cicers of an'j i.ctes Ci ::r-:csss:..;e:: :'j S:";:,-
hcusing aut~crities or 'N.,:ic,1 are ::J"".erN:se ,"':":ace a ;:a-..
of the ccr:::-act wit~ S:";C..., r:c:ce...s d :;c:escr :cr::s
f~~a~~~~~:'~~~~~~;~~~~'~da~~; :~,~:~:~c~~ ::~x~'~. ~~~!;.:~
Irg ,cr ml.;J-:c:cal sar/lces anc ~ac:.:::es, a..c :.~e S!i!":"',i,-a-
tien of ur.sale anc :nsanltar/ ~',:.'e::ir:gs, ar:c::mrac:s
rer the ccrstructicn of hcusir.c :.-:iects. te:e:!'";er 'N:.--
ad proceeGir.gs. ac:s. a.~:: :~.ir,;s ':-e-9::;:--:
undertaken, :errormec. or dO,ie ','/:::--: rererer:e :~eie~:
are hereby validated, ratified.:ciifirmed, aCC,QVe':.
and cec:arec legai in atl resi=ec:s. ."':c::,'i:hs~2,"':dllig 2.-'.,
Cefec~ or ir:-egular;t'l :r:erein .::r 2.;"',,/ wa.,,:, :t sta[:..:::,.-:
author.ty.
Hlstol'"'/.~. Z. :.", ~951~. ~93i: :3L ';4C Sw:::. c'cc:"j': l.:. ::-, -:..~:
421.~5 ~otes ~nd =cnds.-:-~:! prc.ceec:,-;s. a::3
anc thlr:gs ...:eretorore ;.;."':cer:a...;e:"".. ;:er:crm9': ,:x:c"',e
in or for :r.e authcr;z:a::on, iss:..;a.,:ce, exec:..:i:r a.-:
ce!j'I'=r'; cf ~,ctes arc :cncs :., ~::.;sin~ 3.'.;:~cr;:;es 7::~
the purpose of finarc:ng or aici~g.r; the '::e'le:c':i.ier.t :~
:::;:struc::cn of a housirg prcie~: -:r prcjec:s, ar:d 3,;
....:C1:es anc ::cr.cs heietcfcre iss:..:e-:: :y i,cus.....; :!u:r.c~:-
:ies are heie:y '/alica:e~. rati;iec. :cr":fir:-r,ec. a:crO\i9:
anc c:ec:are~ !egai :r, at! respec~3, ~::;-"":t::s:a:-;:::ir:g ar./
cefect or ir:-e-:ular;t'j :,"':erein cr :'.-'1 WSi':t cl 3:2.t.;..:tC.....
aL:thcrit'j, ~ , .
Hlstol"'f.-i. 3.~. ~9511. ~939: C:l", 1940 s~:::. 7.:Cl:"~.'"
421.261 Continuance of municioaJ housinc
authorities when municipality abolished; counties ir.
excess of 400,OOO.-'Nr,ene'/er a i.lunic:pai:::'; :n ar;~,
count:; ha'lir:g a pcpulation ir, excess of J.GC.C:C:
ac::::rding :0 ti':e mest recent c:'7:c:ai censt..;S "as ':ee:-:
cr hereat:er shaH be a:Cc!is"ed. ','I:-:e,ein at :i-.s t:r;j~ ::
s:...:ch aboiis,inient a iicusir,g a:"'::~':rf"-I ci S1.;C," ~ur::c:-
caliri was :r is in ex:ste~ce. s..:::'" hCl.;s:r,;: ~..::....cr::-.
snail ::er.;::--:-..:8::: :ur.c:icr.:r: all ~es:e'::s: :r:',':e:. :~.C'.'."
2'ier. tna~ :l"e ,-;ar.;e cr s:..:c:-. :-:'...:3:0':9 ar.,;:t:,':::i 5,,,,:a
:her:ceior:h ':e s:..:cii as .'"iIay ':e :ete::":iir:ec :~I :.-e
--u-". r....-,....,;Ss.,c-e.s ....; ~"e -~'........, ...'.....:>-'0.- ""'r--
'-:... I" j _ ~"',' ,I." , : 1 . ......" ,,_ .... .'J . ,. ,_. ~." ,~ ,.... .:
:Icns. C.ac~ SL:C.1 iicus:r,g aul~c"'::-/ ar.c the '::r7":r.;;~.
sicr:ers therec/o within the area :f cceraric.'i cf sue...
nCl.,;sing al.ltr-:crity as hereina~er :e:i.":8d. 3t':2.:: :-:a'/'9 :;-e
same fur:c:icr:s. ric:-Jts, ~owers, .::..:::es. :mli:u,"':it:es ar:
;::rivileges ;::rcviced ;or ~cl.'sir:g 2'..;:hcrft:es:~~a:ed :cr
519
C~. .!21
?UBUC HCUSfNG
- '..,
';;"
;:. ~ :?9i
~
c:ties. :::ac.1 SUC.1 housing a t,'icrft~1 shall c::r"ir:t.:8 :'J
c:;Jer3[e and prcsec:..ite aIJ .:::rc ec:sJperatel.: 'Jr irHtiated
:v it Gnar to the abolishmer, ot the munlc:oaiit'/, and
shall :e entitled to all :enefils and ,Jnvileges the~eatter
ccnfer~ed upon hOl':Sir:; authc~:ties Ter c;ties. The CCIT;-
i.1:ssicr.ers of each 5:Je.1 hClJsing authcrir~/ snail cer:-
ti:,ue in cific:3 after the abciis,'imer,t Gf the car.ic:..olar
r~lJnic:r::aiity fer the ...er::3incer Jf their respecti;;9 teri'71S.
-;-'"leir SucceS3crs 3,".211 ::e as:oi:itee by resciL.:non ci
~.'ie commissioners of the c:::unty. ~,s l..:sed in the Hcus-
ing Ai..ithorities Law, t,".e terms ~;T1ayor" and ~;ovemir.g
body' shall be ccr:str'Jed as r"eaning ~c.:)unr:, cornmis-
s;cners." the ter:i1 ~c:ty" as '...:sed therein shall :::e cen"
s~~:.Jed as meaning ~c:unt'!,~ and the term ~clerk;" as
'...:sed therein shail ::e::'list~t...;=d as :'T1eaiii~; ":!eii< ,:Oi
:r~ ;::r::"':ll CJuft:f the :~JL.nty: :...:::iess rjiife:=r: .;.e2.';-
:,';C5 (;:23.rl'/ aeaear ;rc~ :he c:Jr.ta;,ts. The area 'J! ,Jpa:.
arfcn of an.y su'ch housing authority shaH Gontir.ue to =e
the same as that before the acciis.'iment of t~e i":1t..:iiici-
caii!'I. unless extendec: bv resolution of :,~e coun:'!
c:::mmissicners, crovieed tha: no such exter.sicn shail
ir.c:ude ariy ter~itcr! lying within a city as ,:efined in the
hcusin:; Authorities La'N.
iiislory.-s 1.cn.293(:S,1953
421.27 Housing authorities in countieso-
(1) '" each county of the state there is hereby Gre-
ated a ::::t..::lic boe'l co~orate ar.,::: JOiit:c to :e "G':C'N:i as
:he "housing ,a~thorit'(~ ct ~he. ::::unr(: provicec, hew-
e'/a:, tha: suen ~::,uslng 3.L.:mcr;~; 3......ad not tja::sac~ a:'l:1
ousir,ess or exercise its powers nereunC2:- i..Ii";Ui '::~
t.:r~iess tr.e governing 'oc':y :f such county. ':y ;:rcper
res.JIution shall -:ec!are at anv tlr719 hereafter ~hat there
is r:eed for a housing authe~:t~1 to fune:jen in and fc:
s:...:c:' count'l, whie.' dec;a;atior s;,aii 'Je mace j'j sue.:
governing body for such coulity in the same r.ianr,er
anc sut:Ject to the sam9-conci:i::rls as the ::e::~a~atic~
cr :~e :;8'je....,'l:~c bee'!:f 2. ::t"; "e::...::;ec: '::'/ s. ..1.2~ .:"::' :cr
U-.e :Jur;Jcse of 3lnhoriz:r.; a 'hcusing aut'hority created
for a ';:[',.' to transact business ar.d exercise its cO'.'Iers.
exc9:Jt that the :Je~ition ~afe:~-=c t-=:, in said s.' ~2i .':':'
s,'iail 'J9 ,signed ='X 25 ;esl;::~:;ts 'JT SL.;C~ C?Ur.t~/. ,
;''-'' l..-,:':.... .:ct:Tlcat!C~ :: :,~,e 3::e:,!::-: J; st..:c:-; -eSQit..;.
tier. :i1e c::mmiss:oners cf a nousi,'lc authori~1 ere-alee
fer a c::ur:ty. who shall be qt.;aiiTied eiectors of suc:,
county, shall be ap::;oi~,[ed ':;y the '?o'l,ernor in the sarTie
j.La~iler as the CGrnrTiiss:one:3 Cl a nous:ns 3L.:t:;':r1t./
c~-=2ted ;c.... a c:ty r:iay be aGGOI~:~C: :y :,~e .,.:=;"icr' -3~=
exc30t as ctherNise ;::I-'Jvie~c :'"'lere!n, ~2C.'1 :;:::t..:s:....,,~
a:..;;~cnt'l ,.:~e:=;,tec ;or a '.:c:.J~,'! ai-;: ~~e :::I"::~:S:;,:"2,-3
:r.e:eci. ','nthi.'l the area 'Ji ooe~~:i(;nJi SIX:-'."'1CL..:s:~;:
aUl::Ofity as ;""1ereinatter :efir.es. sr:ail :":a'/~ :,';e sa;--:;e
:r...:r.c:ions. ~ignts. powers.:uties. ';;:mL..:,'1lties 3:;d :::;ri'/i.
leGes provided for ,'1ousinQ 3uthcr:ties c;eatec ~or c:ties
ar~c :.':e c:::mmissior,ers:f suc.'i .'1cL.:s:na 2uther:rles. ::-;
t.'ie same .-nanner as tncL:gh ail the ,:rovisicns cf :aw
acciic3ble :0 housing aL.;:~or:tles :;eated fer c:t:es 'Nere
a::::c;ic3ble ~o housing awti":or:tles c...eated fcr:-cc;:;ies:
~r0'i:sed, :~at lor SL..:ch .:ur~ases ~he :erm ~~ayc(':;:s
~~~; ~'~~i:.~ :;:~ ~u~~~~~~ ~,t~~ ~:~i ~:r;a :';~~:~'n7 ~c;:.~ ~ ~~.;: ~'~
',,;S"?C: :heretn sr,ail ~e ::::.'lstn...:ec 25 ::".eafilfig "::;u.....:/
t;;orn1.1lssiorers," :he ~eri."1 "::r,/ 25 L..:se-:: therein s~aii ':e
::r.s~~:...:-=C as "7':ear.:::,; "-::r.;nt/." a:::: ~~e .2'- "::s,...:";;:
:..;se'j :.'":ereir 3.'1ail :::e :::r.str'.;ec as ,"i"'.ea,~;,~; .::'~,~';
.::er:--(." as iierein Ge~::-:e.:. uniess a :::;r~e"~,~: ,"7'.=:?,-;.~~
-::earty acs~ars frsi., :.'~e ,::ontex:: ar;C ,:":'.:~o::: .:...;:--:-,,:
t:"'at :h~ <3cvsrr:Gr ~ay aspoint ar~y ~ers:~s 25 '::::-:,-,;.
SiCGerS ,')T 2. :-;Ol.:S;;;g a:..;:h:rity ':~eatec: ':- = ::'''';.-.':
2,re:;-'..:aiii;ec -:!e'::'Jrs :.'"'l SUc."l CJL.:i,t/: 2.~: : ":'i::~: . ...
t~e'" :,';at Si..:C:; '::.-:,i.,:S3:CrierS '7':a'/ ':e --=~ :'.~:: :.- :_>
pe~cec :0"1 t:'e sar:ie ~a,~ner anc Ter :.~e S2.,~e "=:?~:-;
as ::1.....,e; ,;ffiC8,$ ac::,ci.....ted by ~."1e G':'/e."~:"
(31 -:"e a;~a cf:);:e~3:;an cf 3 i:Ot.,;S;i: 2_~:-,::",:'/ -..:>.
"":"';"0' 0:: ,--, '-"/ s"'-'I '~""uc.e a'J -' ...."" _:, -.', ',-.' ,:,,:.,:-...
a._..., .. _ ~........'''. ,'CI ,'...., I '..... "'_ '__ _ ': _ '_'
it is :~e3:ec ex:e:Jt ::-.2: :crtlon .:i ::-:e ::~:-:-. N....::.- :~:
-.::;- ::.-
r..::-:,-':'/i%::S ....
,:e,: 1::',e, '.~,e
;'.::: 3. :e-=: :: 3:"':-
i-:'~:-::'/ ...,:- '::- ._~-~
.-:.::~:2' :~ :ee::s :.
!""'i $, :":'.':':;;': :-2~-
.~:. ;;::e:: .--::, -=:: ...
"; _~...;:~c: ~:"_':,~_.,_ ~ ~_
'::" ~-'~ ~
:~:~S ::~~:;es 3:-2
$. 3. ~eec: ':..::-e 'e~
::e: ::r 2,.
:1 3:...::- ::
-:-,,~ "...;r:::::~-; --=-~
,..,i:.';~n :;""e ter..:t,:r:al ::",:,-::aries c; ar.'/ :::. _"
-"'-=.-
;_:~ ::'..:;;.-~;- ::::
t,~e"';:L.s::"';: ,~:";:~C"i:,2S
_3','1. 8S a,-:-e~:e:
.-:,:::r'.--;
. ~<::. ;::
421.23 Cr'!atjan of regional housin; a:..::.l.;cri;y.":"
:~ t~e:;,:1)9,~ir; ::cc:y 0: 2ac~ :' :...,: :,. -:.':
c:>-;~i~:...:c'...;s ::::'''':i;ties ::" "Ssoiut;on :e'::a~ss ._~t ~~~.~ s
a .iee.: ::r:r.e :--cusir; 3.'..'thoritj ~c ::e :~2=:=; :,:.' ;..: ::
s'...:c:': :::untes to ~xe;::se ;::awers ;,~: :::-e" ;'''';,~c:::~s
;-.~:~!;-; ,::-9sc~~::-ed :i. s:...;::; cou;-;::es. a,::":': :::':' ::'.
pcrat-e ar,e ;:ciilic to :e ~iiown as 3 ~s;i:,~a. :;::r...;s:t;
at.;t,,;crity si':ail thersL.:C:.'1 exist :cr a!l:f s:...:::-:::::.;:i::es
a~<j axer::ise :ts ::::cwe,s and ,::t,"ier ;I..;,":C:; :-5 :r; $'...:::,.
:::i..i:-;:ies: a:iC :~ar9!";:::~ eac."i .'"::L.;s:.'"'l: =_ -- :..':': ". ~
are.: :~I s. ~2 -; .27 for =a::.~ of SUC.i :::t.:r~!es s,~=li :2=5~
to e:<:s: 5xce:::t :cr ::--:9 :'_r:cse :' '..i....,,::,~; _: :3 ?:'o;.,:S
aiiC 9xe::...::.-;; 2. :eec :: ::-;8- reg:crai .lCL..3-; ?.:,-:....'.
as i;e,-ea~:e: ,:i::".;i:e'::: :rov'lced ::--:a: :.-e ::'/2"."':::-:
bOC:1 c:i 3 ':::U.'it~/ s~a[: ict adept a ..as:!v;:~- 2.3 ?':.~:
sa:: :1 :.-.=~e is a :-1GL.:3;;:; al.lt,'i::~::,/ ,:,-e~~e: .:' 3:";."
!:::l7::':'"1cc:a:::::-:s -=:<
!,~:"":a';e :. sa:e 2.-::
:~ s ;"'; s:"':::,- ::~:- :':
;.: ';.:-:a:3 ::- e~: ~~. _
"
7'-,a: a 'e;':::~
-:'9 ei-:'::::e...::.. =~:
.~= ~:'...;s>; =_::-:..:
;,_o:::ses:: ::--::5-:
:n a."':'/ S'...:!:. =,-
.,;..-...
~_ =-~._-~c::-;:.
-' ~ ~. ~ -. -
'-e "=;::~3., ~:....:s:;~
:L'.~::':'/ ,;-?:':9:::-
:.:=.:e: 3S ::. :.:,,::: -
-:...; :cc::-s es:.?:.:
:'.S':iSSS a:"',: e:<-=':
:.::: :f ::-2 =.::::;:::-
:::'i :; 22::- :' .-s::
::o'...:.....:~;
..,...-,ic~ '":as 2:'Y
~,; =.''":.~C';":'''' :9':.-="'-
,-; 2.:..:h:r:: ~3.C:-,
L"':;~~: ": :ec:a-':
~::..s::--:~ 3.'_::-:~:;\/ a:"'
:-; '.e:-;-:"s. -:. .'_-.:--='
::-:.:'C:"5 -?- ~:--e'::.'
:::i~3.::e~s ;::";:3:.::.,-:;~; _:",::::::;3
iirs::
,":':1 :::ii;:::es af
C::I";i.:~i
.~,:;L.;S;~:
3",," 'v
::'-'-.,
=.,~': :2,-::e5 :.: ti',-2::.~.'::.:::S. ::c~:s. -,::95 ':::'-,':: :::-~.
:~~:a'~~=;~~i ~~c~~~~};~{:~~~tt,~ a:;~~~~ ~'5:~~'.;
:. 5;":.1 .~s: '_::::' :.
hC....;S;il~ 2.:":i~er::/ cn eif 3~::~ ccn:~.:;,cts. :c,~:s
~::es :;.
-"'.....=.- -
~_. " - ~ - .
::[J~-=: ,::C:,i;a::ci,s: =.'-.:
:~ ?:.~iS5;:,-= ;"'; ~'.
(:1 ::e :::.:1r.'::SS:C.-9rs cf s:..:c~ G:'_....: "':;:'...:3:-;
aL.;:~c,::--.' aGoe; =. res:::..:':n cor.se~;i.'i': :: :-:; :~3,:;3:e:
G,f ai! :.";e .:;:.~.lS, :::lIt~2G:S, :::Iiga:i,:;:;s a;: :'::-e:"":': .23;
anc :'5!:S:t2!. :: S:..:::..... :: ~-:./ ."let...::::",; =.:..;:~:" :: 3";:-
::~~:~I~'
.:.... .2"2
":"..~ ::
'.
.s;.:....a, ~'::'...;s;;....; }:,,:,-,:-'
:e:
-- "'---.- -'.- - -.-
- - - _.-
-- - - '-'.~
3:::-: :':.
..;....9;~ ::-= :::.-::
.~~~'~;:a~:..;-;_~~~:;:;: _
:':;'3 ?.--? :,:rr:::I-eG .','.- ~ '-' ::. -, - ~-~-
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