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PARISA IJADI-MAGHSOODI
CSB No. 273847
BRYAN W. PEASE
CSB No. 239139
LAW OFFICE OF BRYAN W. PEASE
3170 Fourth Ave., Suite 250
San Diego, CA 92103
Telephone: (619) 723-0369
Fax: (619) 923-1001
Email: parisa@bryanpease.com
bryan@bryanpease.com
Attorneys for Plaintiffs and Petitioners
SAN DIEGO TENANT UNION, and
DARLISA MCDOWELL

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SUPERIOR COURT OF THE STATE OF CALIFORNIA

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IN AND FOR THE COUNTY OF SAN DIEGO

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SAN DIEGO TENANT UNION; and
DARLISA MCDOWELL,

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Plaintiffs and Petitioners,
v.

Case No.:
VERIFIED PETITION FOR WRIT OF
MANDATE AND COMPLAINT FOR
DECLARATORY AND INJUNCTIVE
RELIEF:

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SAN DIEGO HOUSING COMMISSION; and
DOES 1-20, inclusive,
Defendants and Respondents.

1. Housing Discrimination in Violation
of the California Fair Employment and
Housing Act (Gov. Code §§ 12900 et
seq.)
2. Housing Discrimination in Violation
of the Unruh Civil Rights Act (Civ.
Code §§ 51 et seq.)
3. Breach of Contract (Civ. Code § 1559)
4. Discrimination in State-Funded
Programs (Gov. Code §§ 11135,
11139)
5. Declaratory and Injunctive Relief
(Code of Civ. Proc. §§ 526 and 1060)
6. Writ of Ordinary Mandate (Code of
Civ. Proc. § 1085)

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VERIFIED PETITION FOR WRIT OF MANDATE AND
COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

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Plaintiffs and Petitioners SAN DIEGO TENANT UNION, and DARLISA MCDOWELL

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(“Plaintiffs”) allege as follows against Defendants SAN DIEGO HOUSING COMMISSION and

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DOES 1-20 (“Defendants”):

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INTRODUCTION

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1. San Diego Housing Commission (hereinafter “SDHC”) is a City of San Diego agency

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responsible for administering federal Section 8 program funds and public housing. SDHC sets

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payment standards for the Section 8 program which determine the monthly assistance that may

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be paid for any family. The payment standards determine the areas within which Section 8

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participants will be able to afford rental units.

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2. SDHC sets payment standards for the Section 8 program significantly below actual

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market rents, which perpetuates racial segregation and the concentration of poverty in the City of

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San Diego. SDHC’s actions in setting below-market voucher payment standards prevents

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families with Section 8 from obtaining dwelling units in high-opportunity, low-poverty, and

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predominantly White areas. SDHC’s actions in setting below-market payment standards results

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in families with Section 8 being able to use their vouchers only in high-poverty, low-opportunity,

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and racially segregated areas.

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3. SDHC has administered its Section 8 program in a discriminatory fashion in violation of
state law, federal law, and SDHC’s contractual obligations.
4. This suit seeks injunctive and declaratory relief to end SDHC payment standard setting

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policies and practices that are perpetuating racial segregation and the concentration of poverty in

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the City of San Diego, and to require SDHC to set payment standards at least as high as the

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levels recommended by HUD for the San Diego area.

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PARTIES
5. Plaintiff and Petitioner SAN DIEGO TENANT UNION (hereinafter “Union”) is a

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tenants’ rights association that seeks to create opportunities for low-income City Heights

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residents to learn about their rights as tenants, become resident leaders, have access to legal

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guidance to remediate conflicts with landlords, and advocate for city-wide changes in housing
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VERIFIED PETITION FOR WRIT OF MANDATE AND
COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

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policy. Union members pay dues and are residents throughout the City of San Diego. The

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majority of its members are minority families or individuals who are participating in or are wait

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listed for SDHC’s Section 8 program. Through community engagement, organizing, and

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outreach, the Union educates its members about tenant rights and residential segregation. The

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Union provides assistance to members seeking to obtain and maintain rental units in low-

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poverty, high-opportunity neighborhoods, outside of racially segregated areas of San Diego.

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SDHC’s actions in setting payment standards below market rents directly harms members of the

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Union by reducing the number of units available in low-poverty, high-opportunity, and

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predominantly White areas available for use by Section 8 participants. SDHC setting vouchers

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below market value results in Union members facing very limited options for available housing

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units throughout the city. This is especially pronounced in low-poverty, high-opportunity,

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predominantly White areas, where rents average higher than other parts of the city. Families

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seeking units in low-poverty, high-opportunity, and predominantly White areas have fewer units

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available to them, and are required by SDHC to pay 50 percent of their income towards rent to

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secure the few units that are available, resulting in housing instability. The Union and its

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members have a beneficial interest in SDHC complying not only with state fair housing and

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antidiscrimination laws, but also SDHC’s contractual obligations to comply with federal fair

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housing and antidiscrimination laws.

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6. Plaintiff and Petitioner Darlisa McDowell is a resident of San Diego, African-American,

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and a Section 8 participant. She lives with, and cares for, her five children and elderly father. She

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is responsible for finding a unit available on the private market that has a rent at or below the

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payment standard set by SDHC. She has struggled to obtain housing in a low-poverty, high-

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opportunity area. Despite her efforts, she has been unsuccessful because SDHC has set the

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payment standards for the City of San Diego woefully below fair market rent. She has been

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limited to, and continues to be limited to, using her Section 8 voucher in a high-poverty, racially

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segregated neighborhood with less adequate services and neighborhood amenities and low

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performing schools. The neighborhood she lives in (Zip Code 92113) is 9 percent White (Not

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Hispanic or Latino) and 34.5 percent of its residents live below the Federal Poverty Level.
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VERIFIED PETITION FOR WRIT OF MANDATE AND
COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

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SDHC has set the payment standard for her neighborhood lower than the market rent. As a result,

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in addition to paying the statutory percentage of her family’s fixed income towards rent each

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month, she is responsible for paying for the amount above the payment standard, even if it causes

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her to pay more than 40 percent of her fixed income towards rent. She prohibits her five children,

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particularly her four sons, from playing outside of her home because the crime and gang-related

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activity in her neighborhood causes her to fear for their safety. She has to pay towards a YMCA

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membership each month for her sons to ensure they have a safe place to go after school. She is

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interested in living in a more racially and economically integrated community, with higher

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performing schools and a safer neighborhood for her children. She has a beneficial interest in

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SDHC complying with not only state fair housing and antidiscrimination laws, but also SDHC’s

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contractual obligations to comply with federal fair housing and antidiscrimination laws.

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7. Defendant and Respondent SAN DIEGO HOUSING COMMISSION is a City of San

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Diego agency charged with administering federal Section 8 program funds and public housing. It

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receives funds from both the federal government and the State of California. It owns, leases, and

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manages more than 3,500 rental housing units in the City of San Diego. It is responsible for

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carrying out the laws of the State of California and conforming ordinances, regulations, and

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policies of the Department of Housing and Urban Development to the requirements of state law.

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It is based in and conducts business in San Diego, California.

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8. Plaintiffs are ignorant of the true names and capacities of the persons or entities named

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herein as DOES 1-20, but are informed and believe, and on that basis allege, that each of such

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defendants and respondents is legally required to act in the manner herein sought. Plaintiffs will

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seek leave to amend this complaint when said defendants’ and respondents’ true names and

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capacities have been ascertained.

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JURISDICTION AND VENUE
9. This Court has personal jurisdiction over the Defendant because the agency is located in
and conducts business in San Diego.

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VERIFIED PETITION FOR WRIT OF MANDATE AND
COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

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10. This Court has subject matter jurisdiction over the claims asserted because relief is

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sought pursuant to Gov. Code §§ 11135, 11139, and 12900 et seq., Civ. Code §§ 51 et seq., Civ.

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Code § 1559, and Code of Civ. Proc. §§ 526, 1060, and 1085.

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11. Venue is proper in this county as the acts upon which this action is based occurred in this
county, and all parties are headquartered in this county.

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FACTS

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Federal Section 8 Program
12. The Housing Choice Voucher Program (hereinafter “Section 8”) is a federal program
that provides financial assistance in the form of a rent subsidy, or voucher, to help low-income
families secure and maintain decent, safe, and sanitary housing in the private market. The
Department of Housing and Urban Development (hereinafter “HUD”) oversees the federal
program’s administration. Families with Section 8 vouchers pay approximately 30 percent of
their income towards the gross rent of a unit, which includes the contract rent and the cost of
utilities. The portion of the rent remaining after the families’ contribution is paid out of Section 8
funds from the local agency responsible for administering the Section 8 program. San Diego
Housing Commission is responsible for administering the Section 8 program for participants
residing in the City of San Diego.
13. Payment standards determine the monthly assistance that may be paid for any family
participating in the Section 8 program. Federal Section 8 legislation and regulations provide
guidelines for setting local payment standards. Payment standards are calculated based on the
fair market rents for the area in which the Section 8 voucher will be used. Federal regulations
direct payment standards for each size of dwelling unit in a market area to be not less than 90
percent and not more than 110 percent of the fair market rent for the same size of dwelling unit
in the same market area. (42 U.S.C. § 1437f(o)(1)(B).) When a Section 8 participant is seeking a
dwelling unit, the participant must find a unit with rent that is equal to or less than the payment
standard. If the rent is higher than the payment standard, the voucher holder is responsible for

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VERIFIED PETITION FOR WRIT OF MANDATE AND
COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

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their portion of rent plus any amount above the payment standard (but note that upon initial

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lease-up, the family’s share cannot be more than 40 percent of adjusted income). The payment

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standard therefore limits the units that the voucher holder can access. As a result, the voucher

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holder must seek rental units that are at or below the payment standard.

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14. HUD establishes fair market rents for existing or newly constructed rental dwelling

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units of various types and sizes in the market area suitable for occupancy by persons assisted by

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the Section 8 program. (42 U.S.C. § 1437f(o)(1)(B) incorporating 42 U.S.C. § 1437f(c)(1).)

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Historically, HUD established a single payment standard across an entire metropolitan area,

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based on the fair market rent at the 40th or 50th percentile of that metropolitan area’s rent

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distribution. The units suitable for occupancy by Section 8 participants are “standard quality,

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non-luxury housing.” The fair market rent for this type of housing is used to determine both

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whether a dwelling unit is eligible for the Section 8 program, and the amount of federal funds

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that can be paid on behalf of a Section 8 participant. (42 U.S.C. § 1437f(o)(2), (3).) Annually,

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HUD establishes fair market rents for metropolitan and non-metropolitan areas. In the San Diego

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metropolitan area, HUD has generally set fair market rents at the zip code level, enabling

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families to access approximately 50 percent of the rental units in each zip code. As will be

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discussed below, relying on its “regulatory flexibilit,” SDHC has refused to follow HUD

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guidelines, and has set payment standards significantly below the levels set by HUD.

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San Diego Housing Commission

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15. The City of San Diego receives federal funding from HUD for Section 8 Housing

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Choice Vouchers (“HCV”). HCVs are referred to as “Section 8 vouchers” because of their origin

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in Section 8 of the U.S. Housing Act. SDHC is responsible for the administration of the Section

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8 voucher program.

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16. SDHC receives funding from the State of California.

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17. SDHC is engaged in the business of owning, leasing, and managing more than 3,500

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rental housing units, including 189 federal public housing units, and administering the Section 8

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program. Among the SDHC-owned units are 1,366 former public housing units for which HUD
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VERIFIED PETITION FOR WRIT OF MANDATE AND
COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

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transferred full ownership and operating authority to SDHC in 2007, at which point SDHC

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provided the residents with Section 8 vouchers.

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18. Each year, HUD establishes fair market rents for the City of San Diego to use in the
administration of its Section 8 program.

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Small Area Fair Market Rents
19. The fair market rents established by HUD for zip codes within the City of San Diego

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are Small Area Fair Market Rents (hereinafter “SAFMR”). (24 C.F.R. § 888.113; Notice of

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Fiscal Year 2019 Fair Market Rents, 83 FR 44644.)

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20. In the November 16, 2016 Federal Register notice “Small Area Fair Market Rents in

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Housing Choice Voucher Program Values for Selection Criteria and Metropolitan Areas Subject

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to Small Area Fair Market Rents,” HUD identified public housing authorities in 24 metropolitan

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areas that would be subject to SAFMRs because they met the following requirements:

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(i) There are at least 2,500 HCV (vouchers) under lease;
(ii) At least 20 percent of the standard quality rental stock, within the metropolitan
FMR (fair market rent) area is in small areas (ZIP codes) where the Small Area FMR
is more than 110 percent of the metropolitan FMR;
(iii) The percentage of voucher families living in concentrated low income areas
relative to all renters within the area must be at least 25 percent;
(iv) The measure of the percentage of voucher holders living in concentrated low
income areas relative to all renters within these areas over the entire metropolitan area
exceeds 155 percent (or 1.55); and
(v) The vacancy rate for the metropolitan area is higher than 4 percent.

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(81 FR 80678).
21. As explained in the SAFMR Final Rule (hereinafter “Final Rule”), “the main benefit of

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SAFMRs is that, through setting rental subsidy amounts at a more local level, assisted

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households will be more able to afford homes in areas of high opportunity than under current

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policy. Such moves are expected to benefit both individual households, for example, through

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access to better schools or safer neighborhoods, and areas as a whole through reducing

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concentrated neighborhood poverty.” (81 FR 80569.)
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VERIFIED PETITION FOR WRIT OF MANDATE AND
COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

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22. In the Purpose of the Regulatory Action section of the Final Rule, HUD addresses the

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purpose behind SAFMRs which is to decrease the concentration of poverty and racial

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segregation within the Section 8 program. HUD explains how its previously existing efforts to

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address high concentrations of voucher holders by raising the level of the fair market rent from

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the 40th percentile to the 50th percentile “has not been targeted to areas of opportunity, and

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consequently, this formula has not proven effective in addressing the problem of concentrated

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poverty and economic and racial segregation in neighborhoods.” (81 FR 80567.)

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23. The Final Rule was aimed at aligning the Section 8 program with HUD’s statutory

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mandates to ensure fair housing and avoid contributing to concentrated poverty. SAFMRs

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increase the share of households that can use their vouchers to access rental units in low-poverty

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areas, instead of in racially segregated areas with high concentrations of poverty.

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24. The Final Rule targeted 24 metropolitan areas, including the City of San Diego. In these

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areas, the majority of voucher holders—disproportionately consisting of racial minorities—live

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in racially segregated, voucher-concentrated areas of poverty because the payment standards do

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not reflect the fair market rents of neighborhoods. In these 24 areas, the Section 8 program has

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perpetuated, rather than ameliorated, racial segregation and concentrations of residential poverty.

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25. Pursuant to the Final Rule, SAFMRs would allow families with vouchers—a population

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in which racial minorities are overrepresented—to move from racially segregated neighborhoods

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with concentrated poverty to higher-opportunity neighborhoods within each of the 24

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metropolitan areas.

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26. The metropolitan areas targeted by the Final Rule were chosen because of their high

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concentrations of voucher holders living in concentrated low-income areas relative to all renters

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within that area. The program’s use of a single payment standard across each metropolitan area

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contributed to this concentration of poverty, because the homes affordable to voucher holders

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were concentrated in a limited number of neighborhoods with low rents. With SAFMRs, fair

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market rent would be set based on the rents in each zip code, instead of based on the rents in an

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entire metropolitan area. By setting payment standards at the level of the zip code, more units

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would be available in higher rent, low-poverty areas. The metropolitan areas chosen each has
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VERIFIED PETITION FOR WRIT OF MANDATE AND
COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

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significant voucher concentration challenges and market conditions where establishing fair

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market rents by zip code areas has the potential to significantly increase opportunities for

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voucher families. (81 FR 80567).

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27. San Diego was among the 24 metropolitan areas identified by HUD because of its high

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concentration of voucher tenants living in concentrated low-income areas (defined as census

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tracts in the metropolitan area with a poverty rate of 25 percent or more, or any tract in the

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metropolitan area where at least 50 percent of the households earn less than 60 percent of the

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area median income adjusted for tract average household size).

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28. Each year since San Diego was identified in the SAFMR Federal Register Notice, the fair

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market rents established and published by HUD for SDHC to use in the Section 8 program have

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been zip-code based fair market rents.

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SDHC’s Administration of the Section 8 Program
29. Each year since San Diego was identified in the SAFMR Federal Register Notice, SDHC
has failed to increase its payment standard to align with the zip-code based fair market rent.
30. SDHC uses a three-tier system to set payment standards. The current payment standards,

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dated December 12, 2018, went into effect January 1, 2019. However, voucher recipients will

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not benefit from the new payment standards until their biannual recertification. For Plaintiffs and

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many Section 8 families, this will not occur until late 2020.

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31. SDHC’s 2019 payment standards are not based on current fair market rents. The payment
standards are set significantly below fair market rent.
32. SDHC’s prior payment standards dated February 15, 2018, were not based on fair market
rents. The payment standards were set below fair market rents.
33. SDHC’s prior payment standards dated January 9, 2018, were not based on fair market
rents. The payment standards were still set significantly below fair market rent.

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34. SDHC’s prior payment standards dated December 7, 2017, are identical to SDHC’s

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payment standards dated January 9, 2018. These payment standards were not based on fair

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market rents. The payment standards were set significantly below fair market rent.
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VERIFIED PETITION FOR WRIT OF MANDATE AND
COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

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35. In 10 San Diego zip codes which constitute the lowest tier of SDHC’s three-tier payment

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standards, SDHC did not increase the payment standard for more than three years, despite HUD

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data showing that rents significantly increased during that time. The payment standard that was

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in effect in 2015 remained in effect until January 1, 2019, and will remain in effect until voucher

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participants’ next biannual recertification. In these 10 zip codes (in red in the below chart), the

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payment standard was set below fair market rents, and remains below fair market rent.
///

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VERIFIED PETITION FOR WRIT OF MANDATE AND
COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

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2
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Zip
Code

2015
SDHC
Payment
Standard

2016
SDHC
Payment
Standard

2017
SDHC
Payment
Standard

2018
SDHC
Payment
Standard

2018
HUD
Fair
Market
Rent

2019
SDHC
Payment
Standard

2019
HUD
Fair
Market
Rent

92037
92101
92102
92103
92104
92105
92106
92107
92108
92109
92110
92111
92113
92114
92115
92116
92117
92119
92120
92121
92122
92123
92124
92126
92127
92128
92129
92130
92131
92139
92145
92154
92173

$1,564
$1,304
$1,304
$1,304
$1,304
$1,304
$1,564
$1,304
$1,304
$1,304
$1,304
$1,304
$1,304
$1,304
$1,304
$1,304
$1,304
$1,564
$1,564
$1,304
$1,304
$1,304
$1,564
$1,304
$1,564
$1,564
$1,304
$1,564
$1,564
$1,304
$1,304
$1,304
$1,304

$1,564
$1,304
$1,304
$1,304
$1,304
$1,304
$1,564
$1,304
$1,304
$1,304
$1,304
$1,304
$1,304
$1,304
$1,304
$1,304
$1,304
$1,564
$1,564
$1,304
$1,304
$1,304
$1,564
$1,304
$1,564
$1,564
$1,304
$1,564
$1,564
$1,304
$1,304
$1,304
$1,304

$1,564
$1,304
$1,304
$1,304
$1,304
$1,304
$1,564
$1,304
$1,304
$1,304
$1,304
$1,304
$1,304
$1,304
$1,304
$1,304
$1,304
$1,564
$1,564
$1,304
$1,304
$1,304
$1,564
$1,304
$1,564
$1,564
$1,304
$1,564
$1,564
$1,304
$1,304
$1,304
$1,304

$1,740
$1,567
$1,304
$1,304
$1,304
$1,304
$1,740
$1,567
$1,740
$1,567
$1,567
$1,567
$1,304
$1,304
$1,304
$1,304
$1,567
$1,740
$1,740
$1,740
$1,740
$1,740
$1,740
$1,740
$1,740
$1,740
$1,740
$1,740
$1,740
$1,567
$1,567
$1,304
$1,304

$2,220
$2,500
$1,570
$1,930
$1,610
$1,570
$2,000
$1,990
$2,430
$2,180
1,940
$1,760
$1,570
$1,570
$1,570
$1,620
$1,850
$1,820
$1,820
$2,160
$2,370
$2,120
$2,240
$2,100
$2,230
$2,260
$1,870
$2,500
$2,500
$1,670
$1,570
$1,730
$1,570

$1,810
$1,630
$1,356
$1,630
$1,356
$1,356
$1,810
$1,630
$1,810
$1,630
$1,630
$1,630
$1,356
$1,356
$1,356
$1,356
$1,630
$1,810
$1,810
$1,810
$1,810
$1,810
$1,810
$1,810
$1,810
$1,810
$1,810
$1,810
$1,810
$1,630
$1,630
$1,356
$1,356

$2,310
$2,880
$1,580
$2,050
$1,710
$1,470
$2,420
$2,090
$2,680
$2,310
$2,040
$1,840
$1,420
$1,470
$1,640
$1,720
$1,950
$2,150
$2,120
$2,550
$2,490
$2,220
$2,570
$2,240
$2,580
$2,370
$1,970
$2,910
$2,910
$1,810
$1,790
$1,790
$1,490

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VERIFIED PETITION FOR WRIT OF MANDATE AND
COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

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36. SDHC’s payment standards are significantly below fair market rents for each zip code in

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San Diego. The payment standards are woefully below the SAFMRs released by HUD for each

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zip code in the City of San Diego. In addition to being woefully below fair market rents, SDHC

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requires Section 8 program participants to pay up to 50 percent of their income towards rent if

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they wish to live in a higher rent, lower-poverty, predominantly White zip code, imposing a

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severe housing cost burden on these families. Federal best practices identify families that pay

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more than 30 percent of their income towards rent as rent burdened and in an unstable housing

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situation. Paying 50 percent of one’s income towards rent results in housing instability, and an

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increased risk of eviction, particularly for low-income families and individuals on a fixed-

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income. SDHC’s Annual Plan for 2019 states:
Re-proposed in the Fiscal Year 2012 Plan Amendment to adopt a policy allowing SDHC
to calculate payment standards below 90% of the FMR in high-poverty areas. A Fiscal
Year 2015 activity increased the rent burden to 50 percent program wide. Thus, the
component eliminating the 40 percent rent burden is eliminated. Reproposed in the
Fiscal Year 2018 MTW Annual Plan to increase flexibility related to determining
payment standards. Payment standards are informed by hypothetical SAFMRs
published by HUD, the information available at the time of the analysis. (2019 Annual
Plan, p. 21.)

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Modifies the 40 percent affordability cap to 50 percent at initial lease-up in order to
increase housing choice for low-income households. (2019 Annual Plan, p. 16.)
SDHC’s Moving to Work Designation

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37. San Diego is a Moving to Work (hereinafter “MTW”) public housing authority. The

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MTW Demonstration Program provides flexibility in the design and administration of housing

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assistance to eligible families, to reduce cost and achieve greater cost effectiveness in Federal

23

expenditures, to give incentives to families with children where the head of household is

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working, seeking work, or is preparing for work by participating in job training, educational

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programs, or programs that assist people to obtain employment and become economically self-

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sufficient, and to increase housing choices for low-income families.

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VERIFIED PETITION FOR WRIT OF MANDATE AND
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38. On April 25, 2018, SDHC’s Chief Executive Officer testified before the U.S. House of

2

Representatives Committee on Financial Services on SDHC’s MTW designation and the mission

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of its program:

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MTW has been especially significant in the expensive housing markets of California,
including San Diego. The MTW program has allowed SDHC to encourage families and
reward them for productive activities. SDHC’s MTW initiatives provide opportunities
for Section 8 Housing Choice Voucher rental assistance participants and public housing
residents to become more financially self-reliant and improve their housing choices as
SDHC achieves efficiencies in the administration of federal funding.
(emphasis added.)
39. A MTW public housing authority that is identified as a designated SAFMR area in the
Final Rule is exempt from implementing SAFMRs if it has an alternative payment standard
policy in its HUD-approved Annual MTW Plan. (Notice PIH 2018-01(6).)
40. On January 14, 2009, SDHC entered into a written contract, entitled Amended and
Restated Moving to Work Agreement (hereinafter “the MTW Agreement”), with HUD. The
MTW Agreement specified that its term would continue until the end of SDHC’s 2018 fiscal
year, unless such term was otherwise extended by HUD. On April 14, 2016, HUD extended the
term of the MTW Agreement through 2028.
41. The terms of the MTW Agreement entered into between SDHC and HUD, including the
Annual Moving to Work Plan Certification of Compliance with Regulations, Board Resolution
to Accompany the Annual Moving to Work Plan (in Attachment B), the Statement of
Authorizations to Amended and Restated Moving to Work Agreement (Attachment C),
Community-Specific Authorizations (Attachment D), and the Housing Authority of the City of
San Diego Resolution (Appendix C), contain the following provisions:

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a. “The Agency shall: […] Assist substantially the same total number of eligible
low-income families under MTW, as would have been served absent the
demonstration.” (MTW Agreement, p. 3).
b. “The Agency will comply with all applicable nondiscrimination and equal
opportunity requirements set forth in 24 C.F.R. § 5.105(a), and will administer its
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VERIFIED PETITION FOR WRIT OF MANDATE AND
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programs and activities in a manner affirmatively to further fair housing.” (MTW
Agreement, p. 4).
c. “Even if HUD approves a MTW Plan that is inconsistent with an external
requirement, such as a state law, requirement, the Agency is still subject to the
external requirement.” (MTW Agreement, p. 10, FN 3.)
d. “The PHA will carry out the Plan in conformity of Title VI of the Civil Rights
Act of 1964, the Fair Housing Act, section 504 of the Rehabilitation Act of 1973,
and title II of the Americans with Disabilities Act of 1990.” (MTW Agreement,
p. 23 (Attachment B, p. 7)).
e. “The PHA will affirmatively further fair housing by examining their programs or
proposed programs, identify any impediments to fair housing choice within those
programs, address those impediments in a reasonable fashion in view of the
resources available and work with local jurisdictions to implement any of the
jurisdiction’s initiatives to affirmatively further fair housing that require the
PHA’s involvement and maintain records reflecting these analyses and actions .”
(MTW Agreement, p. 23 (Attachment B, p. 7)).
f. “The Agency reaffirms that it will comply with all applicable nondiscrimination
and equal opportunity requirements set forth in 24 C.F.R. § 5.105(a), and will
administer its programs and activities in a manner affirmatively to further fair
housing.” (MTW Agreement, p. 25 (Attachment C, p. 1)).
g. “Deconcentration Policy – The Agency is authorized to develop and adopt a local
policy designed to provide for deconcentration and income mixing in public
housing communities.” (MTW Agreement, p. 29 (Attachment C, p. 5)).
h. “The Agency is authorized to adopt and implement any reasonable policy to
establish payment standards, rents or subsidy levels for tenant-based assistance
that differ from the currently mandated program requirements of the 1937 Act
and its implementing regulations. The Agency is authorized to adopt any
reasonable policies to calculate the tenant portion of the rent that differ from the
currently mandated program requirements of the 1937 Act and its implementing
regulations.” (MTW Agreement, p. 33 (Attachment C, p. 9)).
i. “The Agency is authorized to adopt and implement any reasonable policy to
establish payment standards, rents or subsidy levels for tenant-based assistance
that differ from the currently mandated program requirements of the 1937 Act
and its implementing regulations. The Agency is authorized to adopt any
reasonable policies to calculate the tenant portion of the rent that differ from the
currently mandated program requirements of the 1937 Act and its implementing
regulations.” (MTW Agreement, p. 33 (Attachment C, p. 9)).

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VERIFIED PETITION FOR WRIT OF MANDATE AND
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 j. “The Agency is authorized to determine contract rents and increases and to
determine the content of contract rental agreements that differ from the currently
mandated program requirements in the 1937 Act and its implementing
regulations.” (MTW Agreement, p. 34 (Attachment C, p. 10)).

1
2
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k. “The Agency is authorized to determine income qualifications for participants in
the rental assistance program that differ from the currently mandated program
requirements in the 1937 Act and its implementing regulations, as long as the
requirements that […] substantially the same number of low-income persons are
assisted under the demonstration as would be without the MTW authorizations
contained herein” (MTW Agreement, p. 34 (Attachment C, p. 10)).

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l. “That the Commission will continue to assist substantially the same total number
of eligible low-income families under MTW as would have been served if the
HUD funding sources had not been combined.” (MTW Agreement, p. 40
(Appendix C, p. 2)).

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m. “Authorizations Related to Section 8 Housing Choice Vouchers Only: Not
withstanding any language in this Agreement or its attachments, the Agency shall
follow the regulations at 24 CFR 941.202, 941.203, and 983.57.” (MTW
Agreement, p. 44 (Appendix D)). 24 CFR 941.202, which was removed Oct. 24,
2013 (78 FR 63748, 63793) addresses low-income housing’s impact on racial
segregation and the concentration of poverty.1

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n. “That the program complies with Fair Housing and Equal Opportunity
Requirements, as listed in 24 CFR Part 5, as well as the Americans with
Disabilities Act of 1990.” (MTW Agreement, p. 40 (Appendix C, p. 2)).

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24 CFR 941.202, which was removed Oct. 24, 2013 (78 FR 63748, 63793)(“The site for new
construction shall not be located in an area of minority concentration unless: The site and neighborhood
must be suitable from the standpoint of facilitating and furthering full compliance with the applicable
provisions of Title VI of the Civil Rights Act of 1964, Title VIII of the Civil Rights Act of 1968, E.O.
11063, and HUD regulations issued pursuant thereto.
(1) The site for new construction projects must not be located in:
(i) An area of minority concentration unless (A) sufficient, comparable opportunities exist for housing for
minority families, in the income range to be served by the proposed project, outside areas of minority
concentration, or (B) the project is necessary to meet overriding housing needs which cannot otherwise
feasibly be met in that housing market area. An "overriding need" may not serve as the basis for determining
that a site is acceptable if the only reason the need cannot otherwise feasibly be met is that discrimination
on the basis of race, color, religion, creed, sex, or national origin renders sites outside areas of minority
concentration unavailable; or
(ii) A racially mixed area if the project will cause a significant increase in the proportion of minority to
non-minority residents in the area.
[…]
(d) The site must promote greater choice of housing opportunities and avoid undue concentration of
assisted persons in areas containing a high proportion of low-income persons.”)
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42. SDHC claims that its payment standards are justified because it is a MTW jurisdiction

2

which does not have to abide by federal regulations that govern the administration of Section 8

3

funds. However, the MTW program does not exempt housing authorities from compliance with

4

federal fair housing laws and regulations. SDHC’s claim that its setting of payment standards

5

that are woefully below market rents is “justified” by its participation in the MTW program is

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false and is a pretext for discrimination. The MTW program specifically requires compliance

7

with fair housing laws and regulations.

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43. By the terms of the contract, HUD agreed to permit SDHC to participate in the MTW
Demonstration to design and test innovative methods of providing housing and delivering

10

services to low-income families through the Section 8 voucher and project-based programs, and

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SDHC agreed to comply with federal fair housing laws and regulations.

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44. The intent of Congress in enacting the Section 8 program, the language of the statute, the

13

relevant legislative history, HUD’s implementing regulations, and the contract between SDHC

14

and HUD is to provide affordable rental housing to low-income families, and to ensure low-

15

income families contribute towards rent no more than the Section 8 program deems reasonable.

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45. The primary purpose of the MTW contract entered into between SDHC and HUD was to
provide housing assistance payments to low-income families in the City of San Diego.

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46. The contract was made for Plaintiffs’ benefit in that the contract governed SDHC’s

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administration of the Section 8 program which provides housing assistance payments to low-

20

income individuals and families in the City of San Diego.

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47. SDHC Section 8 participants are the beneficiaries of the MTW contract entered into

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between SDHC and HUD. As third party beneficiaries of the contract, Plaintiffs have the right,

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pursuant to Civ. Code § 1559, to enforce the contract, and to bring an action to compel specific

24

performance.

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48. SDHC agreed to abide by fair housing laws and regulations when it entered into the
MTW contract with HUD.
49. SDHC’s actions setting and enforcing below-market payment standards constitute a
breach of the MTW Agreement. SDHC’s actions setting payment standards are not in accordance
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VERIFIED PETITION FOR WRIT OF MANDATE AND
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with SDHC’s contractual obligations under its MTW Agreement. SDHC’s actions make

2

dwelling units in predominantly White areas inaccessible because of race, and perpetuate racial

3

segregation in San Diego, in violation of fair housing laws specified in the MTW Agreement.

4

50. Three provisions of the MTW Agreement required SDHC to comply with

5

nondiscrimination and equal opportunity requirements set forth in 24 C.F.R. § 5.105(a): (1) “The

6

Agency will comply with all applicable nondiscrimination and equal opportunity requirements

7

set forth in 24 C.F.R. § 5.105(a), and will administer its programs and activities in a manner

8

affirmatively to further fair housing.” (MTW Agreement, p. 4); (2) “The Agency reaffirms that it

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will comply with all applicable nondiscrimination and equal opportunity requirements set forth

10

in 24 C.F.R. § 5.105(a), and will administer its programs and activities in a manner affirmatively

11

to further fair housing.” (MTW Agreement, p. 25 (Attachment C, p. 1)); and (3) “That the

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program complies with Fair Housing and Equal Opportunity Requirements, as listed in 24 CFR

13

Part 5, as well as the Americans with Disabilities Act of 1990.” (MTW Agreement, p. 39

14

(Appendix C, p. 2)). 24 C.F.R. § 5.105(a) requires compliance with the following federal laws

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and regulations:

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Nondiscrimination and equal opportunity. The Fair Housing Act (42 U.S.C. 3601-19)
and implementing regulations at 24 CFR part 100 et seq.; Executive Order 11063, as
amended by Executive Order 12259 (3 CFR, 1959-1963 Comp., p. 652 and 3 CFR, 1980
Comp., p. 307) (Equal Opportunity in Housing Programs) and implementing regulations
at 24 CFR part 107; title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d-2000d-4)
(Nondiscrimination in Federally Assisted Programs) and implementing regulations at
24 CFR part 1; the Age Discrimination Act of 1975 (42 U.S.C. 6101-6107) and
implementing regulations at 24 CFR part 146; section 504 of the Rehabilitation Act of
1973 (29 U.S.C. 794) and implementing regulations at part 8 of this title; title II of the
Americans with Disabilities Act, 42 U.S.C 12101 et seq. 24 CFR part 8; section 3 of the
Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) and implementing
regulations at 24 CFR part 135; Executive Order 11246, as amended by Executive
Orders 11375, 11478, 12086, and 12107 (3 CFR, 1964-1965 Comp., p. 339; 3 CFR,
1966-1970 Comp., p. 684; 3 CFR, 1966-1970 Comp., p. 803; 3 CFR, 1978 Comp., p.'
230; and 3 CFR, 1978 Comp., p. 264, respectively) (Equal Employment Opportunity
Programs) and implementing regulations at 41 CFR chapter 60; Executive Order 11625,
as amended by Executive Order 12007 (3 CFR, 1971-1975 Comp., p. 616 and 3 CFR,
1977 Comp., p. 139) (Minority Business Enterprises); Executive Order 12432 (3 CFR,
1983 Comp., p. 198) (Minority Business Enterprise Development); and Executive Order

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12138, as amended by Executive Order 12608 (3 CFR, 1977 Comp., p. 393 and 3 CFR,
1987 Comp., p. 245) (Women's Business Enterprise).

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51. SDHC violated these three MTW Agreement provisions by setting payment standards in

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a way that perpetuates racial segregation, and by failing to examine and address the effects of its

5

payment setting policies and decisions on the racial composition of the areas affected and on the

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integrated housing choices available to minority SDHC Section 8 program participants in

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violation of 42 U.S.C. § 3608(e)(5) and 24 C.F.R. § 903.15(d), which requires housing

8

authorities to administer its Section 8 program in a manner to affirmatively further the fair

9

housing policies of the Fair Housing Act, 42 U.S.C. § 3601, et seq.

10

52. A provision of the MTW Agreement required SDHC to examine the payment setting

11

policy and identify any impediments to fair housing in order to affirmatively further fair housing

12

in the Section 8 program: “The PHA will affirmatively further fair housing by examining their

13

programs or proposed programs, identify any impediments to fair housing choice within those

14

programs, address those impediments in a reasonable fashion in view of the resources available

15

and work with local jurisdictions to implement any of the jurisdiction’s initiatives to

16

affirmatively further fair housing that require the PHA’s involvement and maintain records

17

reflecting these analyses and actions.” (MTW Agreement, p. 23 (Attachment B, p. 7)).

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53. SDHC failed to examine and address the effects of its payment setting policies and

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decisions on the racial composition of the areas affected and on the integrated housing choices

20

available to minority SDHC Section 8 program participants in violation of this provision of the

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MTW Agreement.

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54. A provision of the MTW Agreement required SDHC to adopt only reasonable policies to

23

establish payment standards and the tenant’s portion of the rent: “The Agency is authorized to

24

adopt and implement any reasonable policy to establish payment standards, rents or subsidy

25

levels for tenant-based assistance that differ from the currently mandated program requirements

26

of the 1937 Act and its implementing regulations. The Agency is authorized to adopt any

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reasonable policies to calculate the tenant portion of the rent that differ from the currently

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VERIFIED PETITION FOR WRIT OF MANDATE AND
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mandated program requirements of the 1937 Act and its implementing regulations.” (MTW

2

Agreement, p. 33 (Attachment C, p. 9)).

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55. In adopting a payment standard that is woefully below fair market rents and results in the

4

perpetuation of racial segregation and the concentration of poverty in certain areas of San Diego,

5

SDHC failed to adopt a reasonable payment standard policy and breached this provision of the

6

MTW Agreement.

7

56. In adopting a rent burden policy that allows Section 8 participants to pay up to 50 percent

8

of their income towards rent, despite federal best practices identifying families that pay more

9

than 30 percent of their income towards rent as rent burdened and in an unstable housing

10

situation, SDHC failed to adopt a reasonable rent burden policy and breached this provision of

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the MTW Agreement.

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Racial Discrimination and Segregation in SDHC’s Section 8 Program
57. SDHC’s 2018 Section 8 participants are 53.55 percent White and 46.44 percent racial

15

minorities. The City of San Diego is 64.7 percent White and 35.3 percent racial minorities.

16

Racial minorities are overrepresented among Section 8 participants in the City of San Diego.

17

58. SDHC knew its administration of the Section 8 program was perpetuating racial

18

segregation and the concentration of poverty in the City of San Diego. SDHC stated in its 2016,

19

2017, and 2018 Annual Plans that it would focus on prioritizing poverty deconcentration and

20

voucher utilization efforts. In its 2017 Annual Plan, SDHC states that providing households with

21

the option to relocate to a “low-poverty area” “ensures better life outcomes due to increased

22

neighborhood safety, lower crime rates, better health, and higher levels of life satisfaction.” In its

23

2018 Annual Plan, SDHC states that its programs includes strategies “enabling households to

24

relocate from high- and medium-poverty neighborhoods to low-poverty neighborhoods in the

25

City of San Diego” to “provide and enhance opportunities for low-income households to live in,

26

and benefit from, areas of opportunity otherwise inaccessible for a majority of rental assistance

27

participants.” It states that through its programs, SDHC ensures “HCV participants are

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VERIFIED PETITION FOR WRIT OF MANDATE AND
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 1

incentivized to relocate to low-poverty areas due to increased affordability, resulting in

2

decreased concentrations of poverty and positive outcomes for HCV households.”

3

59. The payment standard determines the areas within which Section 8 participants will be

4

able to afford rental units. The families participating in SDHC’s Section 8 program are not

5

legally restricted to units in any zip code. SDHC is required to administer the Section 8 program

6

for any eligible unit located by a SDHC Section 8 participant in the City of San Diego. But the

7

payment standards set by SDHC has an effect equivalent to a legal restriction. The majority of

8

SDHC Section 8 participants do not reside in and cannot access units in low-poverty, high-

9

opportunity, predominantly White zip codes.

10

60. HUD’s stated policy is that public housing authorities should set payment standards to

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make 50 percent of the rental dwelling units in the area housing market available for Section 8

12

use. SDHC’s payment standards policy and decisions fail to make 50 percent of the rental

13

dwelling units in the city available, and instead make a disproportionate number of units

14

available in predominantly high-poverty, non-predominantly White areas of the city. SDHC’s

15

payment standards make a disproportionate number of units in predominantly low-poverty,

16

White areas unavailable. SDHC’s policy and decisions make a higher percentage of the rental

17

units in predominantly minority, high-poverty areas available for occupancy by persons assisted

18

under Section 8. The same payment standards make a lower percentage of the rental units in

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low-poverty, predominantly White areas available for occupancy by persons assisted under

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Section 8.

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61. SDHC had many opportunities to revise its payment standards setting policy and

22

decisions to eliminate the disparities between the number and percent of units available in low-

23

poverty, predominantly White areas compared to the number and percent of units available in

24

high-poverty, minority areas. SDHC continuously chose not to make any revision, but continued

25

to set payment standards that render a disproportionate number of units in low-poverty,

26

predominantly White areas unavailable for use in the Section 8 program. SDHC chose to

27

continue to set payment standards that made a disproportionate number of units in minority areas

28

available for use in the Section 8 program.
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VERIFIED PETITION FOR WRIT OF MANDATE AND
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 1

62. SDHC has been given the opportunity to explain the racially discriminatory effects of its

2

payment standard setting policy and decisions. When asked why SDHC had chosen not to

3

increase its payment standards to reflect SAFMRs, SDHC’s Chief Executive Officer stated that

4

the program: “amounted to nothing more than social engineering,” “would have been hard to

5

administer, expensive to administer, prone to errors,” and a subset of participants would

6

experience a decrease in assistance causing them to have to pay more in rent. (New plan could

7

increase voucher value in higher-rent areas, San Diego Union-Tribune, Aug. 28, 2017; Voucher

8

change gives greater mobility for low-income residents, San Diego Union-Tribune, Feb. 19,

9

2018.)

10

63. The use of payment standards that reflect market rents would not decrease the total

11

number of Section 8 units available in the City of San Diego. When a Section 8 participant is

12

seeking a dwelling unit, the participant must find a unit with rent that is at or below the payment

13

standard. SDHC’s payment standards are below market rents. If SDHC increased payment

14

standards to reflect market rents, there would be an increase in the number of Section 8 units

15

available.

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64. Effective August 2019, the City of San Diego will prohibit landlords in the City of San

17

Diego from refusing to rent to Section 8 voucher holders. As a result, all rental units in the City

18

of San Diego will be potentially accessible to Section 8 participants.

19

65. The use of payment standards that reflect market rents would not increase SDHC’s

20

administrative costs for setting the payment standards. The data is already available from HUD,

21

and updated data is established by HUD each year.

22

66. HUD made available a source of federal funding specifically for any one-time costs

23

associated with the adoption of SAFMRs. (PIH-2018-09, 14.) SDHC did not apply for the

24

funding.

25

67. The use of payment standards that reflect market rents would not dramatically increase

26

the total amount of federal funds used for the Section 8 program in San Diego. Jurisdictions that

27

have implemented payment standards based on SAFMRs have experienced small and gradual

28

movement, rather than immediate movement.
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VERIFIED PETITION FOR WRIT OF MANDATE AND
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68. In 2017, SDHC received $162,981,499 in total voucher HAP (the contract between the

2

private landlord and SDHC) funding, but expended only $136,154,334 on HAP expenditures.

3

Only 83.5 percent of SDHC’s share of voucher HAP funding was spent directly on vouchers,

4

resulting in additional funds in SDHC’s reserves. SDHC can draw down some of its reserves to

5

fund higher payment standards. HUD encourages housing authorities to increase their payment

6

standards to decrease rent burdens and increase a program’s success rate. The success rate is the

7

share of households issued vouchers who are able to successfully find a private landlord to

8

accept the voucher before the voucher expires. SDHC’s success rate is 70 percent.

9

69. The use of payment standards that reflect market rents would not cause any Section 8

10

participants to experience a decrease in assistance, because SDHC has the discretion to hold

11

harmless any tenant who would experience a decrease in payment standard. HUD granted

12

housing authorities, including SDHC, the discretion to hold current tenants harmless from a rent

13

increase that results from a change in the fair market rent during the term of the HAP contract.

14

(HUD conformed the SAFMR regulations to Section 107 of the Housing Through Opportunity

15

Modernization Act.) In fact, because SDHC’s payment standards are so woefully below market

16

rents, if SDHC increased the payment standards to reflect market rents, payment standards would

17

increase for 99 percent of Section 8 participants. If SDHC chose not to implement a hold

18

harmless policy, the payment standard for one bedroom units in one of the City’s 33 zip codes

19

would decrease from $1,117 to $1,090. This could cause a rent increase of up to $27 for up to

20

172 voucher recipients at the time of their next biannual recertification if no other changes

21

occurred. The remaining 15,093 voucher recipients would see a dramatic increase in assistance if

22

payment standards were increased to reflect market rents. SDHC can, however, hold the 172

23

tenants harmless from such increases as authorized under federal law.

24

70. SDHC knew that its payment standard setting policies and practices disproportionately

25

harmed and continue to harm minorities. SDHC’s own data shows that minorities are

26

overrepresented among Section 8 participants, that the majority of Section 8 participants reside

27

in high-poverty, racially segregated neighborhoods, and that SDHC’s payment standards render

28

units in low-poverty, predominantly White neighborhoods inaccessible to Section 8 participants.
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VERIFIED PETITION FOR WRIT OF MANDATE AND
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71. In 2016, SDHC knew that it was targeted by HUD for SAFMR implementation because

2

of the concentration of poverty and racial segregation in its Section 8 program. SDHC knew

3

HUD had directed SDHC to update its payment standards for each zip code to reflect fair market

4

rents in an effort to deconcentrate poverty and address racial segregation in the Section 8

5

program. SDHC refused to update its payment standards for each zip code to reflect fair markets

6

rents and instead selectively adjusted its payment standards in a way that furthered, rather than

7

ameliorated, the concentration of poverty and racial segregation. SDHC increased the payment

8

standards for certain zip codes in high-poverty, racially segregated areas in a way that caused the

9

payment standards to more closely reflect fair market rents, but increased the payment standards

10

for low-poverty, predominantly White areas in a way that caused the payment standards to

11

remain significantly below fair market rents. As a result, the payment standards in high-poverty,

12

racially concentrated areas more closely reflect fair market rents, while the payment standards in

13

low-poverty, predominantly White areas do not. When asked why SDHC had chosen not to

14

increase its payment standards to reflect SAFMRs, SDHC’s Chief Executive Officer stated that

15

the SAFMR program: “amounted to nothing more than social engineering.” SDHC has tracked

16

the effectiveness of its payment standards at deconcentrating poverty and addressing racial

17

segregation, and has been aware that its payment standards further, rather than ameliorate, racial

18

segregation.

19

72. SDHC requires families that move to the low-poverty, predominantly White areas to pay

20

a higher percentage (50 percent) of their income towards rent. SDHC did not increase the rent

21

burden for the high-poverty, racially segregated areas. SDHC knew that increasing the rent

22

burden for the low-poverty, predominantly White areas would effectively deter families from

23

moving to these areas. SDHC has tracked the effectiveness of its payment standards and rent

24

burden policy at deconcentrating poverty and addressing racial segregation, and has been aware

25

that the policies further racial segregation.

26

73. SDHC’s payment standards policy and decisions are intended to and do exacerbate racial

27

segregation in the City of San Diego. SDHC’s use of payment standards that are woefully below

28

market rents is done with a racially discriminatory purpose. There are rental units in low-poverty,
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VERIFIED PETITION FOR WRIT OF MANDATE AND
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 1

high-opportunity, predominantly White areas that are standard quality, non-luxury housing

2

suitable for occupancy by persons under Section 8. SDHC’s actions setting below-market

3

payment standards and increasing the rent burden for these areas makes many of these dwellings

4

in the low-poverty, high-opportunity, predominantly White areas unavailable to SDHC Section 8

5

participants.

6

74. There is no legitimate, bona fide, good faith governmental justification for the use of

7

payment standards that are woefully below market rents for the Section 8 program in San Diego.

8

75. SDHC’s calculation of payment standards using below market rate rents perpetuates

9

racial segregation in the City of San Diego. SDHC’s payment standards prevent minority SDHC

10

Section 8 participants from accessing the higher rent, lower poverty, predominantly White zip

11

codes of San Diego. These areas have newer housing, superior public and private services, better

12

performing schools, less exposure to adverse environmental conditions and industrial nuisance

13

conditions, and lower probabilities of exposure to criminal victimization.

14

76. In the predominantly White, low-poverty neighborhoods, SDHC has set the payment

15

standard below the median rent and fair market rent, excluding families with vouchers—

16

disproportionately racial minorities—from accessing available rental units.

17

77. For example, the Point Loma neighborhood is 74.4 percent White (Not Hispanic or

18

Latino), 7.1 percent of the residents are below the Poverty Level, and the percentage of voucher

19

holders residing in this neighborhood is one percent of all renters (30 voucher holders out of

20

2,350 renters). SDHC has set the payment standard for 2019 at $1,810 for a two bedroom unit,

21

which is $610 below the fair market rent for a two bedroom unit, $2,420. It is also below the

22

2017 Median Rent for a two bedroom unit ($1,849) which has significantly increased since 2017.

23

78. Similar to the Point Loma neighborhood, the La Jolla neighborhood is 76.4 percent White

24

(Not Hispanic or Latino), 10.5 percent of the residents are below the Poverty Level, and the

25

percentage of voucher holders residing in this neighborhood is one tenth of a percent of all

26

renters (6 voucher holders 5,785 renters). SDCH has set the payment standard for 2019 at $1,810

27

for a two bedroom unit, which is $500 below the below the fair market rent for a two bedroom

28
24
VERIFIED PETITION FOR WRIT OF MANDATE AND
COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

 1

unit, $2,310. It is also below the 2017 Median Rent ($1,916) for a two bedroom unit, which has

2

significantly increased since 2017.

3

79. The East San Diego/City Heights neighborhood is 16 percent White (Not Hispanic or

4

Latino), 27.6 percent of the residents are below the Poverty Level, and the percentage of voucher

5

holders residing in this neighborhood is 19 percent of all renters (2,452 voucher holders of the

6

13,120 renters). SDHC has set the payment standard for 2019 at $1,356 for a two bedroom unit,

7

which is $114 below the fair market rent for a two bedroom unit, $1,470.

8

80.

9

neighborhood is 9 percent White (Not Hispanic or Latino), 34.5 percent of the residents are

Similar to the East San Diego/City Heights neighborhood, the Logan Heights

10

below the Poverty Level, and the percentage of voucher holders residing in this neighborhood is

11

16 percent of all renters (951 voucher holders of the 5851 renters). SDHC has set the payment

12

standard for 2019 at $1,356 for a two bedroom unit, which is $64 below the fair market rent for a

13

two bedroom unit, $1,420.

14
15

Zip
Fair Market
2
3
Code Neighborhood
Rent

16

(2 Bedroom)4

17

Voucher
Amount

% White

(Not Hispanic
6
5
(2 Bedroom) or Latino)

% Below
Poverty
Level7

Vouchers as
% of All
Renters8

92106

Point Loma

$2,420

$1,810

74.4%

7.1%

1%
(30/2350)

92037

La Jolla

$2,310

$1,810

76.4%

10.5%

0.1%
(6/5785)

92105

East San
Diego/City
Heights

$1,470

$1,356

16%

27.6%

19%
(2452/13120)

34.5%

16%
(951/5851)

18
19
20
21
22
92113

23

Logan Heights

$1,420

$1,356

9.3%

24
2

25
26
27
28

SDHC 2019 Payment Standards.
SDHC 2019 Payment Standards.
4
HUD SAFMRs 2019.
5
SDHC 2019 Payment Standards.
6
ACS 2017 5-Year Survey (2013-2017).
7
ACS 2017 5-Year Survey (2013-2017).
8
SDHC 2018 Voucher Data; SDHC 2019 Payment Standards; HUD 2019 Zip Code Tabulation Area (ZCTA)
Distribution Data (Effective 2018).
3

25
VERIFIED PETITION FOR WRIT OF MANDATE AND
COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

 81. If SDHC were to increase the payment standard to align with fair market rents, families

1
2

with vouchers—disproportionately racial minorities—would be able to access rental units in

3

low-poverty, predominantly White neighborhoods.
82. SDHC’s payment standards use the existence of the racially separate rental housing

4
5

markets to perpetuate racial segregation. In these segregated markets, standard quality, non-

6

luxury housing in predominantly White areas cost more than standard quality, non-luxury rental

7

housing in predominantly minority areas. SDHC sets the payment standards significantly below

8

the median rent for standard quality, non-luxury rental housing in predominantly White areas.
83. The smaller number of units in predominantly White market areas resulting from

9
10

SDHC’s payment standard policies and rent setting steers minority SDHC Section 8 participants

11

away from units in White areas because of the likelihood that that they will have to spend more

12

resources, time, and money looking for and finding rental housing in those areas, the housing

13

will cost more requiring them to pay a premium to live in those areas, they may not find and

14

secure housing in those areas within the limited time available to utilize the voucher,9 and they

15

will be required to pay a higher percentage (50 percent) of their income towards rent to live in

16

those areas due to SDHC’s policies.

17

84. SDHC’s payment standards make more units available in high poverty, racially

18

segregated market areas. The larger number of units in minority areas encourages racial

19

segregation by steering minority Section 8 participants to find rental housing in the minority

20

market areas or to remaining in minority market areas. SDHC Section 8 participants are steered

21

into minority areas by the higher probability of finding a unit at an affordable rate, and their need

22

to spend less than the percentage encouraged in low-poverty areas towards rent.
85. The discriminatory effects of SDHC’s payment standard setting policy and decisions can

23
24

be avoided by using less discriminatory alternatives that would accomplish the legitimate

25

interests of a payment standard setting policy.

26
27
28

9

Within 60 calendar of being issued a voucher, a family must find a rental unit, enter into a lease, and submit the
lease and a Request for Tenancy Approval to SDHC. If the voucher expires before the family enters into a lease, the
family is denied assistance and must re-apply to the SDHC waitlist. It takes 10 years to get a voucher from the
SDHC waitlist.
26
VERIFIED PETITION FOR WRIT OF MANDATE AND
COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

 1

86. As specified above, SDHC’s payment standards policy and decisions have a

2

disproportionate and discriminatory effect on the minority SDHC Section 8 participant

3

population. These effects and the use of below-market payment standards are not necessary

4

elements of a legitimate payment standard policy.

5

87. Possibilities for setting payment standards that will not have a disproportionate and

6

discriminatory effect on SDHC Section 8 participants include: (a) setting payment standards that

7

reflect 100 percent of HUD’s 2019 SAFMRs, and (b) setting payment standards pursuant to a

8

three-tier program that is based on an average of HUD’s 2019 SAFMRs for the zip codes within

9

each tier. Both of these alternatives achieves the legitimate objectives of a payment setting policy

10

without increasing SDHC’s administrative costs for the setting of payment standards. The

11

SAFMR data is already available from HUD, and will be updated each year.

12

88. A similar standard to one of the above alternative payment standard setting policies

13

would provide SDHC’s Section 8 participants with desegregated and non-discriminatory access

14

to all areas in San Diego.

15

89. The use of payment standards that reflect market rents would also increase the utilization

16

rate for SDHC, an objective all public housing authorities, including MTW-designated

17

authorities, must work towards.

18

90. The non-discriminatory alternatives using payment standards that reflect HUD’s

19

SAFMRs, or an average of SAFMRs for a three-tier program, achieves the legitimate objectives

20

of a Fair Market Rent policy without increasing SDHC’s administrative costs for setting of

21

payment standards. The SAFMR data is already available from HUD, and will be updated each

22

year.

23

91. SDHC’s payment setting decision making record contains no facts to show that SDHC

24

examined and addressed the effects of its decisions in light of its obligations to affirmatively

25

further fair housing and to avoid racial discrimination.

26

92. SDHC’s public administrative record for its payment standard setting process shows that

27

SDHC did nothing to address the effects of its use of below market rate payment standards on

28

the racial composition of the areas covered by the payment standards or on the housing choices
27
VERIFIED PETITION FOR WRIT OF MANDATE AND
COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

 1

of Section 8 participants. That record shows SDHC did nothing to address the effects of its

2

payment standards policy and decisions on the availability of dwelling in predominantly White

3

areas for SDHC Section 8 participants, did not address the effect of its actions on fair housing

4

opportunities in the San Diego area, and did not use its payment standard setting policies and

5

decisions to further fair housing opportunities for SDHC’s Section 8 participants in the City of

6

San Diego.

7
FIRST CAUSE OF ACTION
Violation of California Fair Employment and Housing Act (FEHA)
Gov. Code § 12900 et seq.

8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27

93.

Plaintiffs incorporate all previous paragraphs as if fully set forth herein.

94.

California Fair Employment and Housing Act (FEHA ) prohibits housing

discrimination based on race, religious creed, color, national origin, ancestry, physical disability,
mental disability, medical condition, genetic information, marital status, sex, gender, gender
identity, gender expression, age, or sexual orientation. Gov. Code §§ 12920, 12955.
95.

Gov. Code § 12955.8(b) authorizes a claim for housing discrimination irrespective

of intent, when the alleged act or omission has the effect of discriminating on the basis of race,
color, national origin, or ancestry.
96.

Discrimination includes “the provision of segregated or separated housing

accommodation.” Gov. Code § 12927(c)(1).
97.

SDHC is engaged in the business of owning, leasing, and managing more than

3,500 rental housing units, and administering the Section 8 program.
98.

SDHC has a mandatory legal duty to comply with FEHA. By setting and

enforcing payment standards in a way that restricts housing opportunities and perpetuates
discrimination in the form of racial segregation, SDHC has failed and refused to carry out that
duty.
99.

SDHC’s actions in setting and enforcing payment standards below fair market

rent harms Plaintiffs and families with vouchers—disproportionately racial minorities—by

28
28
VERIFIED PETITION FOR WRIT OF MANDATE AND
COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

 1

excluding them from accessing available rental units in predominantly White, low-poverty

2

neighborhoods, and restricting them to rental units in high-poverty, racially segregated

3

neighborhoods. SDHC’s actions are discriminatory and perpetuate racial segregation in the City

4

of San Diego in violation of FEHA.

5

100.

SDHC’s payment standard setting policies and practices disproportionately harm

6

racial minorities because in San Diego, racial minorities are overrepresented among Section 8

7

participants.

8

101.

9
10
11
12

Plaintiffs are directly and beneficially interested in SDHC’s compliance with all

applicable provisions of the law and with all legal duties, as set forth herein.
102.

At all times relevant to this action, SDHC has had the ability to comply with

FEHA and has failed to do so.
103.

Unless compelled by this Court to comply with FEHA and to refrain from setting

13

payment standards in a way that perpetuates racial segregation in the City of San Diego, SDHC

14

will continue to refuse to comply with FEHA and will continue to violate FEHA. Plaintiffs and

15

other Section 8 participants will continue to be injured as a result.

16
17
18
19
20

104.

SDHC’s actions discriminate against Plaintiffs in violation of Gov. Code § 12900

et seq.
105.

Plaintiffs have no plain, speedy, or adequate remedy at law other than the relief

requested in this Complaint for Declaratory and Injunctive Relief.
106.

Plaintiffs are entitled to declaratory and injunctive relief as set forth below.

21
SECOND CAUSE OF ACTION
Violation of Unruh Civil Rights Act
Civ. Code §§ 51 et seq.

22
23
24

107.

Plaintiffs incorporate all previous paragraphs as if fully set forth herein.

25

108.

The Unruh Civil Rights Act provides that all persons in California, no matter what

26

their sex, race, color, religion, ancestry, national origin, disability, medical condition, genetic

27

information, marital status, sexual orientation, citizenship, primary language, or immigration

28

status, are entitled to the full and equal accommodations, advantages, facilities, privileges, or
29
VERIFIED PETITION FOR WRIT OF MANDATE AND
COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

 1

services in all business establishments of every kind whatsoever. Civ. Code §§ 51(b), 51.5. The

2

Unruh Civil Rights Act prohibits discrimination in the business of renting housing

3

accommodations. Id.

4

109.

SDHC is engaged in the business of owning, leasing, and managing more than

5

3,500 rental housing units, and administering the Section 8 program. SDHC has a mandatory

6

duty to comply with the Unruh Civil Rights Act.

7

110.

Neither SDHC nor its agents may enforce policies which directly or indirectly

8

abridge the rights afforded to individuals by section 51 of the Unruh Civil Rights Act. These

9

rights include the right to be free from discrimination based on race in securing housing.

10

111.

SDHC’s payment standards policy and decisions are intended to and do

11

exacerbate racial segregation in the City of San Diego. SDHC’s use of payment standards that

12

are woefully below market rents is done with a racially discriminatory purpose. There are rental

13

units in low-poverty, high-opportunity, predominantly White areas that are standard quality, non-

14

luxury housing suitable for occupancy by persons under Section 8. SDHC’s actions setting

15

below-market payment standards makes many of these dwellings in the low-poverty, high-

16

opportunity, predominantly White areas unavailable to SDHC Section 8 participants.

17

112.

SDHC knew its payment standards policy and its enforcement of its policy

18

perpetuated racial segregation in the City of San Diego. SDHC had many opportunities to revise

19

its payment standards setting policy and decisions to eliminate the disparities between the

20

number and percent of units available in low-poverty, predominantly White areas compared to

21

the number and percent of units available in high-poverty, minority areas. SDHC continuously

22

chose not to make any revision, but continued to set payment standards that render a

23

disproportionate number of units in low-poverty, predominantly White areas unavailable for use

24

in the Section 8 program. SDHC chose to continue to set payment standards that made a

25

disproportionate number of units in minority areas available for use in the Section 8 program.

26

113.

SDHC knew that its payment standard setting policies and practices

27

disproportionately harm minorities. SDHC’s data shows that minorities are overrepresented

28

among Section 8 participants.
30
VERIFIED PETITION FOR WRIT OF MANDATE AND
COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

 1

114.

SDHC intentionally set payment standards woefully below fair market rents to

2

disproportionately impact minority SDHC Section 8 participants, preclude them from using their

3

Section 8 vouchers in low-poverty and predominantly White areas, and restrict their use of the

4

voucher to high-poverty, non-predominantly White areas.

5

115.

SDHC knowingly set payment standards and enforced payment standard policies

6

in a way that perpetuated racial segregation and the concentration of poverty in the Section 8

7

program in the San Diego area.

8
9

116.

Because SDHC’s payment standards sets forth a policy that prevents minority

SDHC Section 8 program participants from enjoying the full and equal advantages of renting

10

units in the City of San Diego, including predominantly White areas and areas outside of those

11

with concentrated poverty, it violates the Unruh Civil Rights Act's prohibition against racial

12

discrimination.

13

117.

SDHC has a mandatory duty to comply with the Unruh Civil Rights Act. By

14

setting payment standards in a way that perpetuates racial segregation, SDHC has failed and

15

refused to carry out that duty.

16
17
18
19
20

118.

Plaintiffs are directly and beneficially interested in SDHC’s compliance with all

applicable provisions of the law and with all legal duties, as set forth herein.
119.

At all times relevant to this action, SDHC has had the ability to comply with the

Unruh Civil Rights Act and has failed to do so.
120.

Unless compelled by this Court to comply with the Unruh Civil Rights Act and to

21

refrain from setting payment standards in a way that perpetuates racial segregation in the City of

22

San Diego, SDHC will continue to refuse to comply with the Unruh Civil Rights Act and will

23

continue to violate the law. Plaintiffs and other Section 8 participants will continue to be injured

24

as a result.

25

121.

26
27
28

SDHC’s actions discriminate against Plaintiffs in violation of Civ. Code §§ 51 et

seq.
122.

Plaintiffs have no plain, speedy, or adequate remedy at law other than the relief

requested in this Complaint for Declaratory and Injunctive Relief.
31
VERIFIED PETITION FOR WRIT OF MANDATE AND
COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

 1

123.

2

THIRD CAUSE OF ACTION
Breach of Written Contract—By Third-Party Beneficiary
Civ. Code § 1559

3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26

Plaintiffs are entitled to declaratory and injunctive relief as set forth below.

124.

Plaintiffs incorporate all previous paragraphs as if fully set forth herein.

125.

On January 14, 2009, HUD and SDHC entered into a written contract, entitled

Amended and Restated Moving to Work Agreement (hereinafter “the MTW Agreement”), a
copy of which is attached as Exhibit A, and made a part of this pleading. The contract specified
that its term would continue until the end of SDHC’s 2018 fiscal year, unless such term was
otherwise extended by HUD. On or around April 14, 2016, HUD extended the term of the
contract through 2028, a copy of the extension is attached as Exhibit B, and made a part of this
pleading.
126.

By the terms of the contract, SDHC agreed to comply with federal fair housing

laws and regulations.
127.

As third-party beneficiaries to the contract, Plaintiffs have the right to enforce the

contract and can bring an action to compel specific performance. Civ. Code § 1559.
128.

On or about December 2018, SDHC breached the contract by failing to comply

with fair housing laws and regulations. SDHC failed to comply with fair housing laws and
regulations by setting and implementing payment standards in a way that perpetuates racial
segregation and the concentration of poverty in the City of San Diego; failing to examine and
address the effects of its payment setting policies and decisions on the racial composition of the
areas affected and on the integrated housing choices available to SDHC Section 8 program
participants; and failing to adopt a reasonable rent burden policy by encouraging participants to
pay 50 percent of their income towards rent.
129.

As a result of SDHC’s breach of the contract, Plaintiffs have been precluded from

using their Section 8 vouchers in low-poverty and predominantly White areas, and their use of
the voucher has been restricted to high-poverty, racially segregated areas.

27
28
32
VERIFIED PETITION FOR WRIT OF MANDATE AND
COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

 FOURTH CAUSE OF ACTION
Discrimination in State-Funded Programs
Gov. Code §§ 11135, 11139

1
2
3

130.

Plaintiffs incorporate all previous paragraphs as if fully set forth herein.

4

131.

Pursuant to Gov. Code § 11135, “No person in the State of California shall, on the

5

basis of sex, race, color, religion, ancestry, national origin, ethnic group identification, age,

6

mental disability, physical disability, medical condition, genetic information, marital status, or

7

sexual orientation, be unlawfully denied full and equal access to the benefits of, or be unlawfully

8

subjected to discrimination under, any program or activity that is conducted, operated, or

9

administered by the state or by any state agency, is funded directly by the state, or receives any

10
11
12

financial assistance from the state.”
132.

SDHC is engaged in the business of owning, leasing, and managing more than

3,500 rental housing units, and administering the Section 8 program and public housing.

13

133.

SDHC receives funding from the State of California.

14

134.

In setting paying standards below market rents and implementing those payment

15

standards, SDHC administered and continues to administer its Section 8 program in a manner

16

that had the purpose and effect of unlawfully denying Plaintiffs access to units in low-poverty,

17

predominantly White areas in violation of Gov. Code § 11135(a) and its implementing

18

regulations.

19

135.

In setting paying standards below market rents, SDHC administered and

20

continues to administer its Section 8 program in a manner that had the purpose and effect of

21

subjecting Plaintiffs to discrimination in the form of racial segregation in violation of Gov. Code

22

§ 11135(a) and its implementing regulations.

23

136.

SDHC has a mandatory duty to comply with Gov. Code § 11135. By setting

24

payment standards in a way that perpetuates racial segregation, SDHC has failed and refused to

25

carry out that duty. SDHC’s actions violate Gov. Code § 11135.

26
27

137.

Plaintiffs are directly and beneficially interested in SDHC’s compliance with all

applicable provisions of the law and with all legal duties, as set forth herein.

28
33
VERIFIED PETITION FOR WRIT OF MANDATE AND
COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

 1
2
3

138.

At all times relevant to this action, SDHC has had the ability to comply with Gov.

Code § 11135 and has failed to do so.
139.

Unless compelled by this Court to comply with Gov. Code § 11135 and to refrain

4

from setting payment standards in a way that perpetuates racial segregation in the City of San

5

Diego, SDHC will continue to refuse to comply with Gov. Code § 11135 and will continue to

6

violate the law. Plaintiffs and other Section 8 participants will continue to be injured as a result.

7
8
9
10
11

140.

SDHC’s actions discriminate against Plaintiffs in violation of Civ. Code § 11135

et seq.
141.

Plaintiffs have no plain, speedy, or adequate remedy at law other than the relief

requested in this Complaint for Declaratory and Injunctive Relief.
142.

Plaintiffs are entitled to declaratory and injunctive relief as set forth below.

12
FIFTH CAUSE OF ACTION
Declaratory and Injunctive Relief
Code of Civ. Proc. §§ 526 and 1060

13
14
15

143.

Plaintiffs incorporate all previous paragraphs as if fully set forth herein.

16

144.

SDHC Section 8 participants are suffering irreparable injury as a result of

17

SDHC’s actions in setting payment standards. The injuries suffered are not easily quantified or

18

compensable, and no compensation or other legal regal remedy could make whole Section 8

19

participants who have been unable to secure and maintain housing in low-poverty and

20

predominantly White areas due to SDHC’s actions. SDHC, unless enjoined, will continue to

21

issue Section 8 vouchers based on payment standards that are woefully below fair market rents,

22

resulting in the perpetuation of racial segregation and the concentration of poverty in the City of

23

San Diego.

24

145.

SDHC Section 8 participants have suffered and will continue to suffer from a lack

25

of access to low-poverty and predominantly White areas, which they cannot access as a direct

26

and proximate result of SDHC’s actions in setting and implementing payment standards woefully

27

below fair market rents.

28
34
VERIFIED PETITION FOR WRIT OF MANDATE AND
COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

 1

146.

Unless enjoined by this Court, SDHC will continue to set payment standards in a

2

way that disproportionately impacts minority SDHC Section 8 participants, precluding them

3

from using their Section 8 voucher in low-poverty and predominantly White areas.

4
5
6
7
8
9
10
11

147.

Plaintiffs are entitled to a legal declaration of their rights and SDHC’s obligations

under applicable state law as alleged in this petition and complaint.
148.

Plaintiffs are entitled to injunctive relief requiring SDHC to comply with its legal

duties as alleged in this complaint.
149.

Plaintiffs are directly and beneficially interested in SDHC’s compliance with all

applicable provisions of the law and with all legal duties, as set forth herein. As a result, they
have standing to bring this claim for declaratory and injunctive relief.
150.

At all times relevant to this action, SDHC has had the ability to comply with state

12

fair housing and anti-discrimination laws, and contractual obligations to comply with federal fair

13

housing and anti-discrimination laws, and has failed to do so.

14

151.

Unless compelled by this Court to comply with those laws and contractual

15

obligations, SDHC will continue to refuse to comply and will continue to violate the law.

16

Plaintiffs and Section 8 participants will continue to be injured as a result.

17
SIXTH CAUSE OF ACTION
Writ of Ordinary Mandate
Code of Civ. Proc. § 1085

18
19
20

152.

Plaintiffs incorporate all previous paragraphs as if fully set forth herein.

21

153.

Plaintiffs are beneficially interested parties entitled to a peremptory writ to

22

“compel the performance of an act which the law specifically enjoins.” Code of Civ. Proc. §

23

1085.

24

154.

Under state law, SDHC has a mandatory legal duty to comply with the California

25

Fair Employment and Housing Act (FEHA) (Code § 12900 et seq.), the Unruh Civil Rights Act

26

(Civ. Code §§ 51 et seq.), and Gov. Code § 11135 which prohibits discrimination in state-funded

27

programs.

28
35
VERIFIED PETITION FOR WRIT OF MANDATE AND
COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

 1
2
3

155.

At all times relevant to this action, SDHC has had the ability to comply with these

laws and has failed to do so.
156.

By setting payment standards in a way that subjects voucher recipients to racial

4

discrimination and perpetuates racial segregation in the City of San Diego, SDHC is failing, as

5

set forth herein, to comply with their mandatory legal duties:
a. Under Gov. Code § 12900 et seq., to not discriminate on the basis of race,

6
7

color, or national origin in housing, to not restrict housing opportunities on

8

the basis of race, color, or national origin, and to not perpetuate

9

discrimination in the form of racial segregation;
b. Under Civ. Code §§ 51 et seq., to not discriminate on the basis of race,

10
11

color, or national origin in housing, and to not perpetuate racial

12

segregation; and
c. Under Gov. Code. § 11135, to not discriminate on the basis of race, color,

13

or national origin in state-funded programs.

14
15

157.

SDHC has a mandatory duty to comply with these laws.

16

158.

SDHC does not have the legal discretion to set payment standards in a way that

17
18

violates these laws.
159.

Plaintiffs are directly and beneficially interested in SDHC’s compliance with all

19

applicable provisions of the law and with all legal duties, as set forth herein. They have standing

20

to bring this claim for writ of mandate, both as a result of their beneficial interest and in the

21

public interest, as set forth therein

22

160.

Unless compelled by this Court to comply with these laws and to refrain from

23

setting payment standards in a way that discriminates and perpetuates racial segregation, SDHC

24

will continue to refuse to comply with these laws and will continue to violate the law. Plaintiffs

25

and other Section 8 participants will continue to be injured as a result.

26
27

161.

Plaintiffs lack a plain, speedy, and adequate remedy at law except by way of

peremptory writ of mandate pursuant to Civ. Code of Proc. § 1085.

28
36
VERIFIED PETITION FOR WRIT OF MANDATE AND
COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

 1
2

162.

Plaintiffs pray for a writ of mandate and for declaratory and injunctive relief, as

set forth below.
PRAYER FOR RELIEF

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WHEREFORE Plaintiffs pray for entry of judgment as follows:
1. For a declaration that:

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a. SDHC’s payment standard setting policies and practices have perpetuated racial
segregation and the concentration of poverty in the City of San Diego,

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b. SDHC has administered the Section 8 program in a discriminatory fashion in
violation of state law, federal law, and its contractual obligations,

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i.

SDHC has breached its MTW contract with HUD by failing to comply

with federal fair housing laws and regulations,

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ii.

By setting payment standards in a way that subjects voucher recipients to

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racial discrimination and perpetuates racial segregation, SDHC has failed to comply with its

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mandatory legal duties set forth in Gov. Code §§ 12900 et seq.,

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iii.

By setting payment standards in a way that subjects voucher recipients to

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racial discrimination and perpetuates racial segregation, SDHC has failed to comply with its

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mandatory legal duties set forth in Civ. Code §§ 51 et seq., and

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iv.

By unlawfully denying Plaintiffs access to units in low-poverty,

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predominantly White areas, and subjecting Plaintiffs to discrimination in the form of racial

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segregation, SDHC has failed to comply with its mandatory legal duties set forth in Gov. Code

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§ 11135(a) and its implementing regulations.

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2. For a peremptory writ of mandate and injunctive relief commanding SDHC to:

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a. Immediately adopt a non-discriminatory payment standards policy that does not
perpetuate segregation in the City of San Diego,

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b. Comply with federal fair housing laws and regulations pursuant to its MTW
contract,
c. Comply with the California Fair Employment and Housing Act’s prohibition on
discrimination (Gov. Code §§ 12900 et seq.),
37
VERIFIED PETITION FOR WRIT OF MANDATE AND
COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

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d. Comply with the Unruh Civil Rights Act’s prohibition on discrimination (Civ.
Code §§ 51 et seq.), and
e. Comply with California’s prohibition on discrimination in state-funded programs
(Gov. Code § 11135).
3. For reasonable attorney’s fees and costs pursuant to, inter alia, Code of Civil Procedure §
1021.5 and Civ. Code § 52;
4. For such other and further relief as the Court deems just and proper.

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Dated: March 7, 2019

By:

_________________________
PARISA IJADI-MAGHSOODI
Attorney for Plaintiffs/Petitioners

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VERIFIED PETITION FOR WRIT OF MANDATE AND
COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

 VERIFICATION

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I, Catherine Mendonca, am an agent of San Diego Tenant Union, one of the Petitioners

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and Plaintiffs in the above action. I am authorized to make this verification on behalf of San

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Diego Tenant Union. I have read the foregoing petition for writ of mandate and complaint for

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declaratory and injunctive relief. To the extent that the Petition is based upon facts that are

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known to me, I verify that they are true, and otherwise, I am informed and believed that all facts

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herein are true.

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I declare under penalty of perjury under the laws of the State of California that the
foregoing is true and correct. Executed this 4th day of March, 2019, in San Diego, California.

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_______________________________
CATHERINE MENDONCA

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VERIFIED PETITION FOR WRIT OF MANDATE AND
COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

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VERIFICATION
I, Darlisa McDowell, am one of the Petitioners and Plaintiffs in the above action. I have

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read the foregoing petition for writ of mandate and complaint for declaratory and injunctive

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relief. To the extent that the Petition is based upon facts that are known to me, I verify that they

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are true, and otherwise, I am informed and believed that all facts herein are true.

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I declare under penalty of perjury under the laws of the State of California that the
foregoing is true and correct. Executed this 3rd day of March, 2019, in San Diego, California.

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__________________________________
DARLISA MCDOWELL

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VERIFIED PETITION FOR WRIT OF MANDATE AND
COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

 Exhibit A

Amended and Restated Moving to Work Agreement

This Amended and Restated Moving to Work Demonstration Agreement (Restated
Agreement) is entered into on this 14 thtay of January, 2009,y and between the United
States of America through the U.S. Department of Housing and Urban Development (HUD) and
the San Diego Housing Commission (Agency). The term of this Agreement shall begin on the
Date of Execution by HUD and shall continue until the end of the Agency's 2018 Fiscal Year,
subject to meeting the evaluation criteria described in Section IV, unless such term is otherwise
extended by HUD; and
WHEREAS, Section 204 of the Omnibus Consolidated Rescissions and Appropriations
Act of 1996 (Pub. L 104-134) (1996 Appropriations Act) establishes the statutory framework
known as the Public Housing/Section 8 Moving to Work (MTW) demonstration program; and
WHEREAS, Section 204(a) of the 1996 Appropriations Act provides that public housing
agencies that administer Section 8 and public housing (Agencies) and the Secretary of HUD
(Secretary) shall have the flexibility to design and test various approaches for providing and
administering housing assistance that: 1) reduce cost and achieve greater cost effectiveness in
Federal expenditures; 2) give incentives to families with children whose heads of household are
either working, seeking work, or are participating in job training, educational or other programs
that assist in obtaining employment and becoming economically self-sufficient; and 3) increase
housing choices for low-income families (the three statutory objectives); and
WHEREAS, pursuant to Section 204(a) of the 1996 Appropriations Act, HUD may
permit Agencies to combine funds appropriated under sections 8 and 9 of the 1937 Act, and may
exempt Agencies from provisions of the 1937 Act and implementing regulations thereunder
pertaining to Public and Indian Housing and section 8 voucher assistance; and
WHEREAS, the Secretary determined that the Agency satisfies the Secretary's selection
criteria and selected the Agency to participate in MTW; and
WHEREAS, on the 8th day of December, 1998, HUD and the Agency executed an MTW
Agreement (the Original MTW Agreement) governing the terms and conditions under which
HUD authorizes the Agency to participate in MTW; and
WHEREAS, the parties have previously entered into one or more Annual Contributions
Contracts (ACCs) setting forth the terms and conditions under which the Agency participates in
the public housing and/or Section 8 Housing Choice Voucher programs administered by HUD;
and
WHEREAS, the parties agree to execute this Restated Agreement, which hereby amends
and replaces any Original MTW Agreement between HUD and the Agency; and

Amended and Restated Moving to Work Ag1·een1ent
San Diego Housing Commission
P000001

 12-11-07
WHEREAS, it is a goal of the MTW demonstration to design and test innovative methods
of providing housing and delivering services to low-income families in an efficient and cost
effective manner, and HUD and the Agency agree to fully cooperate with each other in order to
make the demonstration a success;
NOW, THEREFORE, in reliance upon and in consideration of the mutual representations
and obligations hereunder, the parties do agree as follows:

I.

Statutory Authorizations

A.

This Restated Agreement amends and replaces the Original MTW Agreement between
HUD and the Agency. This Restated Agreement waives certain provisions of the
United States Housing Act of 1937, as amended (1937 Act), and HUD's implementing
requirements and regulations thereunder, as are set forth in the Statement of
Authorizations (Attachment C), and the Legacy and Community-Specific
Authorizations (Attachment D) only to the extent they are necessary to implement the
Agency's Annual MTW Plan. Except as noted in Section LB. below, this Restated
Agreement supersedes the terms and conditions of one or more ACCs between the
Agency and HUD, to the extent necessary for the Agency to implement its MTW
demonstration initiatives as laid out in the Agency's Annual MTW Plan, as approved
by HUD.

B.

Notwithstanding the preceding authority waiving certain provisions of the 1937 Act as
necessary to implement the Agency's Annual MTW Plan, the following provisions of
the 1937 Act, as otherwise applicable, shall continue to apply to the Agency and/or
assistance received pursuant to the 193 7 Act:

C.

I.

The terms "low-income families" and "very low-income families" shall continue
to be defined by reference to Section 3(b)(2) of the 1937 Act (42 U.S.C. §
1437a(b)(2));

2.

Section 12 of the 1937 Act (42 U.S.C. § 1437j), as amended, shall apply to
housing assisted under the demonstration, other than housing assisted solely due
to occupancy by families receiving tenant-based assistance; and

3.

Section 18 of the 1937 Act (42 U.S.C. § 1437p, as amended by Section 1002(d)
of Public Law 104-19, Section 20l(b)(l) of Public Law 104-134, and Section
201 (b) of Public Law I 04-202), governing demolition and disposition, shall
continue to apply to public housing notwithstanding any use of the housing
underMTW.

This Restated Agreement only waives certain provisions of the 1937 Act and its
implementing regulations. Other federal, state and local requirements applicable to
public housing shall continue to apply notwithstanding any term contained in this
Restated Agreement or any Authorization granted thereunder. Accordingly, if any
requirement applicable to public housing, outside of the 1937 Act, contains a provision
that conflicts or is inconsistent with any authorization granted in this Restated
Agreement, the MTW Agency remains subject to the terms of that requirement. Such
requirements include, but are not limited to, the following: Appropriations Acts,

Amended and Restated MTW Agreement

2
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competitive HUD notices of funding availability under which the Agency has received
an award, state and local laws, Federal statutes other than the 1937 Act, and 0MB
Circulars and requirements (including regulations promulgated by HUD thereunder in
24 C.F.R. part 85).

II.

D.

The MTW Agency is authorized to conduct activities in accordance with the Statement
of Authorizations (Attachment C) and in accordance with the Legacy and CommunitySpecific Authorizations (Attachment D), as applicable. In the event of a conflict
between Attachment C and Attachment D, the authorizations in Attachment D will
supersede those in Attachment C.

E.

Notwithstanding any provision set forth in this Restated Agreement, including without
limitations, the term of years and all extensions, renewals and options, and the terms
set forth herein otherwise, any federal law that amends, modifies, or changes the
aforementioned term of years and/or other terms of this Restated Agreement shall
supersede this Restated Agreement such that the provisions of the law shall apply as
set forth in the law.

Requirements and Covenants
A.

The amount of assistance received under sections 8 or 9 of the 193 7 Act by an Agency
participating in the demonstration shall not be diminished by the Agency's
participation in the MTW demonstration.

B.

The Agency agrees that any HUD assistance that the Agency is authorized to use under
the MTW demonstration shall be used in accordance with the Agency's Annual MTW
Plans, as may be applicable. The Agency hereby certifies that the Agency's governing
board has approved this Restated Agreement, and each Annual MTW Plan issued prior
to the date hereof, as applicable, and that a copy of each such board approval has been
provided to HUD.

C.

The Agency shall hold at least one public hearing per Annual MTW submission, and
make the Annual MTW Plan available for public comment for at least thirty (30) days.
The Agency agrees to take into account public comments on the program design,
including comments from current tenants/participants, to the extent such comments
were provided.

D.

The Agency shall: (i) ensure that at least 75 percent of the families assisted are very
low-income families, as defined in section 3(b)(2) of the 193 7 Act, (ii) assist
substantially the same total number of eligible low-income families under MTW, as
would have been served absent the demonstration, and (iii) maintain a comparable mix
of families by family size, as would have been served or assisted had the amounts not
been used under the demonstration.

E.

When providing public housing, the Agency will ensure that it is safe, decent, sanitary,
and in good repair, according to an inspection protocol established or approved by the
Secretary. This in no way precludes the Agency from modifying its own inspection

Amended and Restated MTW Agreement

3
P000003

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protocol as authorized in Attachments C and/or D as long as such protocol meets the
1
housing quality standards established or approved by the Secretary.
F.

The Agency agrees to keep project level budgeting and accounting, report financial
statements in the Financial Data Schedule (FDS)2, and abide by project level
management reviews and fees. The Agency will conform to 0MB Circular A-87 and
the HUD definition of reasonable fees as defined in 24 CFR part 990, and HUD's
Financial Management Guidebook 7475.1 and Supplement, as they may be amended.

G.

HUD will not score the Agency under HUD's Public Housing Assessment System
(PHAS) or HUD's Section Eight Management Assessment Program (SEMAP), or their
successor systems, unless the Agency elects to be scored. If the Agency elects to be
scored, the agency will continue to be scored for the duration of the demonstration.

H.

The Agency agrees to cooperate fully with HUD and its contractors in the monitoring
and evaluation of the MTW demonstration, to keep records, and to submit reports and
other information to HUD as described in the Restated Agreement.

I.

The Agency shall comply with the requirements of the National Environmental Policy
Act (NEPA) and other related federal laws and authorities identified in 24 C.F.R. Part
50 or Part 58, as applicable.

J.

The Agency will comply with all applicable nondiscrimination and equal opportunity
requirements set forth in 24 C.F.R. § 5.105(a), and will administer its programs and
activities in a manner affirmatively to further fair housing. In particular, the Agency
must make reasonable accommodations needed by applicants and residents and must
make units accessible in accordance with the Needs Assessment and Transition Plan as
required under Section 504 of the Rehabilitation Act of 1973 and its implementing
regulations.

K.

The Agency will comply with the terms of any applicable court orders or Voluntary
Compliance Agreements that are in existence or may come into existence during the
term of the Agreement. The Agency further agrees that it will cooperate fully with any
investigation by the HUD Office of Inspector General or any other investigative and
law enforcement agencies of the U.S. Government.

L.

Unless otherwise provided herein, this Restated Agreement does not apply to Section 8
assistance that is required:
I.

To meet existing contractual obligations of the Agency to a third party (such as
Housing Assistance Payment contracts with owners under the Agency's Section
8 Housing Choice Voucher program);

2.

For payments to other public housing authorities under Section 8 portability
billing procedures; or

1

Agencies are still subject to state and local building codes, and housing codes, and state and local public housing law
on inspections.
2
The Agency agrees to comply with FDS submission requirements, including the requirement to submit project level
financial data in the FDS.

Amended and Restated MTW Agreement

4
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3.

To meet particular purposes for which HUD has expressly committed the
assistance to the Agency.

The aforementioned covenants made by the Agency are not exclusive, as the Agency must also
comply with all requirements applicable to public housing other than both those provisions of the
193 7 Act, as amended from time to time, and its implementing regulations specifically waived by
the Authorizations contained in this Restated Agreement.

III. Rent Reform Initiatives
The Agency shall establish a reasonable rent policy that is designed to encourage employment and
self-sufficiency by participating families, consistent with the purpose of this demonstration. In
developing its rent policy, the Agency must adopt a policy for addressing hardship cases. To meet
the Department's purposes of evaluating the MTW demonstration, Agencies may randomly assign
new participants into the MTW group, which will provide an alternate program/rent structure, and
into a contro 1group, which will continue to operate under the 193 7 Act requirements, and collect
useful participant data at the point of random assignment.

IV.

Evaluation
A.

B.

V.

HUD will consider the following criteria when evaluating whether this Agency shall
continue in the MTW Demonstration:
1.

The Agency is in compliance with this Restated Agreement.

2.

The Annual MTW Plans and Reports have been satisfactorily completed and
submitted in a timely manner, consistent with this Restated Agreement; and

3.

The Agency has demonstrated, through the Annual MTW Plan and Report, that
it has used its MTW designation (i.e., engaged in MTW Activities), as set forth
in Section 204 of the 1996 Appropriations Act.

If, after the evaluation during FY 2011 and FY 2014, HUD determines that the Agency
fails to meet the above criteria, HUD can terminate this Restated Agreement.

Amendments and Continuation of Activities
A.

Amendment of this Restated Agreement. This Restated Agreement may be further
amended upon mutual agreement of the Agency and HUD. Proposed amendments by
the Agency to the Restated Agreement shall be submitted in writing to HUD' s Office
of Public and Indian Housing, or its successor, only after the Agency has conducted a
public hearing, considered comments from the hearing in drafting the proposed
amendment, and obtained an approval from the Agency's Board of Commissioners or
Directors, as applicable. HUD will respond to the Agency in writing to either approve
and execute or disapprove the amendment request. The Statement of Authorizations
(Attachment C) may be unilaterally amended by HUD only in order to add to the
The Legacy and Community-Specific Authorizations
existing authorizations.
(Attachment D) may be amended upon mutual agreement between HUD and the
Agency. In the event of a conflict between Attachment C and Attachment D, the
authorizations in Attachment D supersede the authorizations in Attachment C.

Amended and Restated MTW Agreement

5
P000005

 12-11-07
B.

Amendment of the Annual MTW Plan. Amendments to the Annual MTW Plan only
need to be made if the proposed MTW activity falls outside the scope of the HUDapproved Annual MTW Plan. An MTW activity is defined as an activity that an
Agency participating in the MTW demonstration is authorized to undertake only by
means of invoking an authorization included in Attachment C or Attachment D of this
Restated Agreement, as opposed to an activity that a non-MTW agency could
undertake pursuant to the conventional public housing and Section 8 Housing Choice
Voucher programs' statutory and regulatory requirements. Proposed amendments by
the Agency to the Annual MTW Plan shall be submitted in writing to HUD's Office of
Public and Indian Housing, or its successor, only after the Agency has conducted a
public hearing, considered comments from the hearing in drafting the proposed
amendment, and obtained an approval from the Agency's Board of Commissioners or
Directors, as applicable. HUD will respond in writing to either approve or disapprove
the amendment request.
The letter requesting any amendment to the Annual MTW Plan should include the
following information in relation to the proposed MTW Activity:

C.

1.

Description of the proposed activity;

2.

Description of how the activity relates to at least one of the three statutory
objectives;

3.

Identification and discussion of the anticipated impact of the proposed MTW
activity on the stated objective;

4.

Description of the baselines and benchmarks that the Agency will use to measure
the performance and progress of the MTW activities;

5.

Description of the data collection process and metrics the Agency will use to
measure how this activity will achieve one or more of the MTW statutory
objectives; and

6.

The specific provision of the 1937 Act or regulation that is waived under MTW
that authorized the Agency to make this change, when applicable.

Continuation of Activities.
1.

Not later than one year prior to expiration of this Restated Agreement, the
Agency shall submit a transition plan to HUD. It is the Agency's responsibility
to plan in such a manner that it will be able to end all features of the MTW Plan
upon expiration of the Agreement, as HUD cannot guarantee that it will be able
to extend any features of the Plan. The transition plan shall describe plans for
phasing out of such authorizations/features. The plan shall also include any
proposals of authorizations/features of the Restated Agreement that the Agency
wishes to continue beyond the expiration of the Restated Agreement. The
Agency shall specify the proposed duration, and shall provide justification for
extension of such authorization/features. HUD will respond to the Agency in
writing in a timely manner. Only authorizations/features specifically approved
for extension shall continue beyond the term of the MTW Restated Agreement.

Amended and Restated MTW Agreement

6
P000006

 12-11-07
The extended features shall remain in effect only for the duration and in the
manner specified in the approved transition plan.
2.

HUD will review and respond to timely-submitted transition plans within 75
days or they are deemed approved. To the extent that HUD has questions or
feedback within this 75-day period, HUD will transmit such information within a
sufficient time period for the Agency to respond and for HUD to approve a
transition plan within 75 days of submission of the plan.

VI. Funding
A.

Funding Methodology. During the term of the MTW demonstration, HUD will provide
the Agency with public housing operating subsidies, and modernization or capital
funds (including development and replacement housing factor funds), and with tenantbased Section 8 assistance, as provided in Attachment A. If the Agency's Attachment
A does not describe the funding methodology for any of these funding streams, the
Agency's funding will be calculated according to standard HUD calculations of
Agency benefits.

B.

Funding Disbursements. The Agency will receive its public housing operating subsidy
and Section 8 tenant-based funding in accordance with the following calculation and
disbursement requirements:
I.

2.

Operating Fund subsidies
a.

HUD shall calculate the allocation of Operating Fund subsidies to the
Agency in accordance with Attachment A.

b.

The Agency may use these funds for any eligible activity permissible under
Section 9(e )(1) of the 193 7 Act or, if the Agency proposes to use the
funding as part of a block grant in its Annual MTW Plan, it may use these
funds for any eligible activity permissible under Section 8(0), 9(d)(l) and
9(e)(l) consistent with this MTW Restated Agreement.

Capital Funds and Other Grants
a.

HUD shall calculate the allocation of Capital Fund grants (including
replacement housing factor fund grants) to the Agency in accordance with
Attachment A. Capital Funds will be disbursed in accordance with
standard HUD procedures for the disbursement of public housing Capital
Fund Grants.
(i)

In requisitioning grant funds, the Agency will not be required to
provide line item detail, but will request the funds using a single
MTW line item; provided however, that the Agency may not
accelerate draw downs of funds in order to fund reserves.

Amended and Restated MTW Agreement

7
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(ii)

The Agency may use these funds for any eligible activity permissible
under Section 9( d)( l) of the 193 7 Act, or if the Agency proposes to
use the funding as part of a block grant in its Annual MTW Plan, it
may use these funds for any eligible activity permissible under
Section 8( o), 9(d)(l) and 9(e)( 1) consistent with this MTW Restated
Agreement.

(iii) The Agency is subject to the requirements of Section 9(i) of the 1937
Act with respect to its Capital Fund Grants.
b.

c.

Section 8 Tenant-Based Assistance
(i)

HUD shall calculate the allocation of Section 8 Housing Choice
Voucher funding to the Agency in accordance with Attachment A.

(ii)

The Agency may use tenant-based Section 8 funds included in the
MTW block grant for any eligible activity permissible under Section
8(o) of the 193 7 Act or, if the Agency proposes to use the funding as
part of a block grant in its Annual MTW Plan, it may use the funds
for any eligible activity permissible under Section 8(o), 9( d)(l) and
9(e)(l) consistent with this MTW Restated Agreement.

The Agency may submit for HUD consideration and approval alternative
schedules for disbursement of public housing operating subsidy and
Section 8 tenant-based funding to reduce the number of transactions and to
address the time lag between making Housing Assistance Payments (HAP)
for the large number of Section 8 participants from other jurisdictions
(portables) and reimbursement by those jurisdictions. An Agency's request
for consideration and approval of an alternative schedule for disbursement
shall be subject to certain administrative limitations, such as only one
request will be allowed per year.

VII. Administrative Responsibilities
A.

Annual MTW Planning and Reporting.
1.

Annual MTW Plans
a.

If the Agency has ten percent or more of its housing stock in MTW, the
Agency will prepare and submit an Annual MTW Plan, in accordance with
Attachment B, or equivalent HUD form as approved by 0MB, in lieu of the
Five (5) year and Annual Plans required by Section SA of the 1937 Act.

b.

If the Agency has less than ten percent of its housing stock in MTW, the
Agency will continue to complete the Five-Year and Annual Plans required
by Section 5A of the 1937 Act. The Agency will also complete a
Supplemental Annual MTW Plan, based on Attachment B, or equivalent
HUD form as approved by 0MB. Only information not included in either

Amended and Restated MTW Agreement

8
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 12-11-07
the Five-Year Plan or the Annual Plan will need to be included in the
Supplemental Annual MTW Plan (herein also referred to as the Annual
MTW Plan).
c.

Three (3) copies of the Annual MTW Plan shall be submitted to HUD: one
copy will be provided to HUD Headquarters in hard-copy, one copy to
HUD Headquarters in electronic format (i.e., PDF, or Word), and one copy
to the Agency's local HUD Field Office.

d.

The Annual MTW Plan is due not later than seventy-five (75) days prior to
the start of the Agency's fiscal year, unless otherwise approved by HUD,
except in the first year of this Restated Agreement the Agency may submit
an amendment to its MTW Plan if it wants to implement initiatives prior to
the due date of the subsequent MTW Plan.

e.

Attachment B of this Restated Agreement, or equivalent HUD form as
approved by 0MB, provides a detailed description of the required elements
of the Annual MTW Plan.

f.

The Annual MTW Plan will be submitted to HUD only after:

g.

(i)

The Agency has provided for citizen participation through public
hearing and other appropriate means and is approved by the Board of
Commissioners or Directors, as applicable, and

(ii)

The Agency has taken into account public comments on the program
design, including comments from current tenants/participants, to the
extent such comments were provided. To document the foregoing,
the Agency will submit with the Annual MTW Plan documentation
that at least one public hearing was held, that the Plan was available
for public comment for at least thirty (30) days, and that the Agency
took no less than fifteen (15) days between the public hearing and the
approval of the Plan by the Board of Commissioners or Board of
Directors in order to incorporate any public comments into the
Annual MTW Plan. The Agency will submit these documents to
HUD in accordance with Attachment B, or equivalent HUD form as
approved by 0MB, and will keep these documents on file for HUD
review.

HUD shall notify the Agency in writing if HUD objects to any provisions or
information therein. When the Agency submits its Annual MTW Plan
seventy-five (75) days in advance of its fiscal year, HUD will respond to the
Agency within seventy-five (75) days. If HUD does not respond to the
Agency within seventy-five (75) days after an on-time receipt of the
Agency's Annual MTW Plan, the Agency's Annual MTW Plan is approved
and the Agency is authorized to implement that Plan. If HUD does not
receive the Agency's Annual MTW Plan seventy-five (75) days before the
beginning of the Agency's fiscal year, the Agency's Annual MTW Plan is

Amended and Restated MTW Agreement

9
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not approved until HUD responds. Reasons that HUD may object to a
provision or information in the Annual MTW Plan include, but are not
limited to, the following:
(i)

The information required in Attachment B, or equivalent HUD form
as approved by 0MB, is not provided or is deemed insufficient;

(ii)

The Agency's planned MTW activities are not permissible under
MTW Authority or are inconsistent with requirements outside the
1937 Act 3 •
'

(iii) The Agency's planned MTW activities do not have a clear
connection to the statutory goal of the MTW demonstration, which is
to provide Agencies with the flexibility to design and test various
approaches for providing and administering housing assistance that:
(a) reduce cost and achieves greater cost effectiveness in Federal
expenditures; (b) give incentives to families with children whose
heads of household are either working, seeking work, or are
participating in job training, educational or other programs that assist
in obtaining employment and becoming economically self-sufficient;
and (c) increase housing choices for low-income families; or
(iv) There are other good cause factors,
misrepresentation, in the submission.
h.

2.

such

as

material

Once HUD approves an MTW Activity, the activity shall remain approved as
long as it is included in the Agency's Annual MTW Plan submissions
subsequent to the initial approval of the MTW Activity. The approval shall
remain in effect until such time as the Agency proposes to modify the
activity, initiative, or program.

Annual MTW Reports
a.

The Agency will prepare Annual MTW Reports, which will compare the
Agency's activities with its Annual MTW Plan. The Annual MTW Report
will provide the information necessary for HUD to assess the Agency's
activities, in both regular operations and in activities authorized by MTW.

b.

Three (3) copies of the Annual MTW Report shall be submitted to HUD:
one copy will be provided to HUD Headquarters in hard-copy, one copy to
HUD Headquarters in electronic format (i.e., PDF, or Word), and one copy
to the Agency's local HUD Field Office.

c.

The Annual MTW Report will be submitted to HUD for its review annually,
no later than ninety (90) days after the end of the Agency's fiscal year.

3

Even if HUD approves a MTW Plan that is inconsistent with an external requirement, such as a state law
requirement, the Agency is still subject to the external requirement.

Amended and Restated MTW Agreement

10
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 12-11-07

3.

B.

d.

Attachment B of this Restated Agreement, or equivalent HUD form as
approved by 0MB, provides a detailed description of the required elements
of the Annual MTW Report.

e.

HUD shall notify the Agency in writing if HUD requires additional
information or clarifications to the information provided in the Annual
MTW Report.

f.

All HUD forms and other reporting mechanisms required by this Restated
Agreement, including any required certifications, will, where appropriate,
be included in either the Annual MTW Plan or the Annual MTW Report.

HUD reserves the right to request, and the Agency agrees to provide, any
information required by law or required for sound administration of the public
housing and Section 8 Housing Choice Voucher programs.

Other Data Submission Requirements.
1.

The Agency will submit HUD-50058 data and/or HUD-50058 MTW (or their
replacement forms) data to HUD's Public and Indian Housing Information
Center (PIC) system, or its successor. (Note that the use of the HUD-50058
MTW form is restricted to the MTW agencies that have implemented MTW
Activities that prevent use of the standard 50058 form.) These submissions will
be in compliance with HUD's 50058 and/or 50058 MTW submission
requirements for MTW public housing authorities. The Agency will maintain
current building and unit information in the development module of the PIC
Inventory Management System (IMS).

2.

The Agency will provide basic data about the Agency (e.g., address, phone
number, e-mail address, etc.) to HUD through the PIC/IMS system, or its
successor system.

3.

The Agency will complete an annual audit pursuant to the Office of Management
and Budget (0MB) Circular A-133 (including the Compliance Supplement, as
determined by the auditor to be relevant to MTW). The A-133 Audit must be
submitted to HUD in accordance with HUD regulations; a separate copy of the
most recently completed audit must be submitted to the Office of Public Housing
Investments, or its successor Headquarters Office responsible for national
oversight of the MTW demonstration.

4.

The Agency will provide data to HUD through FDS, or its successor system, as
required by the Public Housing Assessment System (PHAS) regulations and
procedures as they may be amended.

5.

The Agency will provide HUD with an electronic version of the Admissions and
Continued Occupancy Policy and Administrative Plan upon HUD's request.

6.

The Agency will provide HUD with a Performance and Evaluation Report for
Capital Fund activities not included in the MTW Block Grant by including this

Amended and Restated MTW Agreement

11
P000011

 12-11-07
as a supplement to Attachment B, or equivalent HUD form as approved by
0MB.
In addition to the reporting requirements listed above, the Agency is required to
comply with any and all HUD reporting requirements that are not specifically waived
by HUD.
C.

Annual MTW Monitoring Site Visit. HUD and/or its contractors will conduct at least
one formal Site Visit to the Agency each year. The purpose of these visits will be to
confirm reported Agency activities, to review the status and effectiveness of the
Agency's MTW strategies, and to identify and resolve outstanding MTW related
issues. The Agency shall give HUD and/or its contractors unimpeded access to all
requested sources of information including access to files, access to units, and an
opportunity to interview Agency staff and assisted residents.

D.

Single Point of Contact. HUD and the Agency shall each appoint a liaison as a single
point of contact in implementing the Restated Agreement.

VIII. Termination and Default

A.

If the Agency violates this Restated Agreement, HUD is authorized to take any
corrective or remedial action described in this Article VIII for Agency default. HUD
will give the Agency written notice of any default. The Agency will have the
opportunity to cure such default within 30 days of the date of said notice, or to
demonstrate within said time period, by submitting substantial evidence satisfactory to
HUD, that it is not in default. If the default is not susceptible to being cured within
said 30 day period, the Agency will demonstrate, to HUD's satisfaction, that the
Agency has taken actions necessary to cure the default and that the default is curable
within 90 days from the date of the default notice. Additionally, the Agency must
covenant to prosecute such cure diligently and complete such cure within the 90 day
period, unless HUD, in its sole judgment, determines that immediate action is
necessary, and therefore has discretion to institute the remedies under Section VIII.C.
of this Restated Agreement.

B.

The following are reasons that HUD may declare the Agency in default of this
Restated Agreement:
1.

The Agency has not corrected HUD identified performance deficiencies within a
reasonable period of time;

2.

Material misrepresentation in the application process that led to the Original
MTW Agreement or this current Restated Agreement;

3.

Use of funds subject to this Restated Agreement for a purpose other than as
authorized by this Restated Agreement;

4.

Material noncompliance with legislative, regulatory, or other requirements
applicable to this Restated Agreement;

5.

Material breach of this Restated Agreement; and/or

Amended and Restated MTW Agreement

12
P000012

 0

'

12-11-07
6.
C.

D.

Material misrepresentation in the Annual MTW Plan or Report submission by
the Agency.

If the Agency is in default, HUD may, among other remedies, undertake any one or all
of the following remedies:
1.

Suspend payment or reimbursement for any MTW activities affected;

2.

Suspend the Agency's authority to make draws or receive or use funds for
affected activities;

3.

Change the method of payment to the Agency;

4.

Require additional reporting by the Agency on the deficient areas and the steps
being taken to address the deficiencies;

5.

Require the Agency to prepare and follow a HUD-approved schedule of actions
and/or a management plan for properly completing the activities approved under
this Restated Agreement;

6.

Suspend the MTW waiver authorization for the affected activities;

7.

Prohibit payment or reimbursement for any MTW Activities affected by the
default;

8.

Require reimbursement by the Agency to HUD for amounts used in violation of
this Restated Agreement;

9.

Reduce/offset the Agency's future funding;

10.

Terminate this Restated Agreement and require the Agency to transition out of
MTW;

11.

Take any other corrective or remedial action legally available; and/or

12.

Implement administrative or judicial receivership of part or all of the Agency.

The Agency may choose to terminate this Restated Agreement at any time. Upon
HUD's receipt of written notification from the Agency and a copy of a board
resolution approving termination, termination will be effective. The Agency will then
begin to transition out of MTW, and will work with HUD to establish an orderly
phase-out of MTW activities, consistent with Section IV C of this Restated
Agreement.

Amended and Restated MTW Agreement

13
P000013

 12-11-07

This Agreement, including all Attachments, is effective upon execution, except as
otherwise provided herein.

HOUSING AUTHORITY OF

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0£ So-.<- ~ G

BY:c ......,___
ITS:

7

Date:

V- e..-s \ -c\ €.-vv~
\

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0

8'

UNITED STATES DEPARTMENT OF
HOUSING AND URBAN DEVELOPMENT

ITS: Assistant Secretary

Amended and Restated MTW Agreement

14
P000014

 1-9-09

ATTACHMENT A
CALCULATION OF SUBSIDIES
TO
MOVING TO WORK AGREEMENT
BETWEEN
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
AND THE
SAN DIEGO HOUSING COMMISSION

Upon execution of the Moving to Work (MTW) Agreement (MTW Agreement) between the
U.S. Department of Housing and Urban Development (HUD) and the San Diego Housing
Commission (Agency), HUD will provide the Agency with operating subsidy, capital funds, and
Housing Choice Voucher Program assistance as described below.
A. Operating Subsidy

1. The calculation of operating subsidy will continue in accordance with applicable operating
subsidy formula law and regulations.
2. For operating funds provided in years prior to the execution of the MTW Agreement, the
Agency may use any accumulated operating reserves for eligible MTW purposes, subject to
applicable provisions of the MTW Agreement.
3. All funds programmed for MTW purposes will be recorded and drawn from MTW designated
line items on relevant HUD forms.
B. Capital Funds Program

l . The Agency's formula characteristics and grant amounts will continue to be calculated in
accordance with applicable law and regulations.
2. For capital funds provided in years prior to the execution of the MTW Agreement, the Agency
may submit, and HUD will, as permitted by law, approve, a request to reprogram, by grant year,
any unobligated funds for eligible MTW purposes. Such requests will be made in accordance
with current procedures governing amendments to the Annual Plan, except that no public
consultation will be necessary prior to submission of the request.
3. All funds programmed for MTW purposes will be recorded and drawn from MTW designated
line items on relevant HUD forms.
C. Housing Choice Voucher Program (HCVP) Subsidy
l. For purposes of the Housing Choice Voucher Program (HCVP) funding, the Initial Year is

calendar year 2009 (January I, 2009 through December 31, 2009).
2. For purposes of the Housing Choice Voucher program funding, the base period for calculating
initial funding is calendar year 2008 (January 1, 2008 through December 31, 2008).
3. Initial Year (CY 2009) HCVP housing assistance payments (HAP) subsidy will be based on
actual HAP expenses incurred by the Agency as reported in the Voucher Management System
Attachment A
San Diego Housing Commission
P000015

 1-9-09

(VMS) in the base period (CY 2008}. Initial Year administrative fees will be based on
application of the FY09 administrative fee rates to the base period (CY 2008} baseline leasing,
and based on the assumption that all new units are leased.
4. Funding eligibility for the HCVP HAP in the Initial Year of this agreement will be equal to the
amounts determined under the preceding paragraph, adjusted for new units not fully represented
in those amounts, and adjusted by the Annual Adjustment Factor (AAF) and by the applicable
proration factor. The Administrative Fee funding will be adjusted for new units (calculated as
provided in paragraph 11 below). For subsequent years, the HAP subsidy will be equal to the
previous year's HAP subsidy eligibility adjusted by the current year's AAF and applicable
proration factor percentage. The Administrative Fee funding for subsequent years will be
adjusted for new units (calculated as provided in paragraph 11 below) and in accordance with the
Appropriations Act in effect, assuming all vouchers are in use. Funding eligibility in any year is
subject to the requirements of the applicable Appropriations Act as it applies to MTW agencies.
5. If the Agency receives incremental HCVP funding, the Agency must decide to either apply the
incremental funding to their MTW block grant or to keep the incremental funding separate, as
provided by law. In some cases, incremental funding may not be eligible for inclusion in the
block grant as may be dictated by law.
6. All HCVP funding provided by HUD and not restricted under item 5, above, or otherwise
prohibited by law in the Initial Year and subsequent years under this agreement, may be eligible
for inclusion in the MTW flexible block grant.
7. The Agency will be eligible to receive Family Self Sufficiency coordinator funding in
accordance with available appropriations and requirements.
8. There will be no year-end settlement of annual funds provided for the MTW HCVP subsidy.
All funds provided through this calculation will remain available for authorized purposes.
9. Funds accrued from January 1, 2008 and forward in the Net Restricted Assets account
resulting from HAP funding that has exceeded HAP expenses shall remain available. All funds
in the Net Restricted Assets account may be used for authorized purposes, subject to applicable
provisions of the MTW Agreement and future appropriations statutes. Any sum held by the
Agency as excess administrative funds (Net Unrestricted Assets) shall remain available and may
be used for authorized purposes subject to applicable provisions of the MTW Agreement and
future appropriations statutes.
IO. Funding for five-year mainstream vouchers, one-year mainstream vouchers, Family
Unification Program vouchers, Veterans' Affairs Supportive Housing vouchers, and moderate
rehabilitation vouchers, whether new allocations or renewals of existing vouchers, shall not be
included in the MTW Block Grant.
11. The Agency will receive administrative fees to administer any incremental vouchers
received, including Family Self Sufficiency funding, in accordance with laws and regulations in
effect. Such fees will be calculated assuming all vouchers are in use.

Attachment A
San Diego Housing Commission

2
P000016

 0MB Control Number: 2577-0216
Expiration Date: 08/31/2011

Form 50900: Elements for the Annual MTW Plan and Annual MTW Report
Attachment B
to
TO WORK AGREEMENT
MOVING
AMENDED AND RESTATED
BETWEEN
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
AND
AGENCY
The information on this form is being collected so the Department is able to respond to Congressional and
other inquiries regarding outcome measures obtained and promising proctices learned throughout the Moving
to Work (MTW) demonstration. The information reported through this form is not confidential. Respondents
will report outcome information to accurately evaluate the effects ofMTW policy changes on residents, the
Agency's operations and the local community. The estimated burden per year per Agency is 81 hours.
Responses to the collection of information are required to obtain a benefit or to retain a benefit. The Agency
may not conduct or sponsor, and are not required to respond to, a collection of information unless that
collection displays a valid 0MB control number. All MTW Agencies will provide the following required
elements in their Annual MTW Plans and Reports, consistent with the requirements of Section VII of the
standard Amended and Restated Agreement, and will follow the following order and format.

Annual MTW .Rennrt

Annual MTW Plan
I. Introduction
A. Table of Contents, which includes all the required
elements of the Annual MTW Plan; and
B. Overview of the Agency's MTW goals and
objectives for the year, Including new and ongoing
MTW activities. An MTW activity is defined as any
activity the Agency is engaging in that requires MTW
flexibility to waive statutory or regulatory requirements.

A. Table of Contents, which includes all the required
elements of the Annual MTW Report; and
B. Overview of the Agency's ongoing MTW goals and
objectives.

U. General Housing Authority Operating lnfonnation
A. Housing Stock Information:

A. Housing Stock Information :

Number of public housing units at the beginning of
the year;

Number of public housing units at the end of the
Plan year, discuss any changes over 10%;

General description of any planned significant
capital expenditures by development (>30% of the
Agency's total budgeted capital expenditures for
the fiscal year);

Description of any significant capital expenditures by
development (>30% of the Agency's total budgeted
capital expenditures for the fiscal year);

Attachment B

1
P000017

 0MB Control Number: 2577-0216
Expiration Date: 08/31/2011
Description of any new public housing units to be
added during the year by development (specifying
bedroom size, type, accessible features, if
applicable);

Description of any new public housing units added
during the year by development (specifying bedroom
size, type, accessible features, if applicable);

Number of public housing units to be removed
from the inventory during the year by development
specifying the justification for the removal;

Number of public housing units removed from the
inventory during the year by development specifying
the justification for the removal;

Number of MTW Housing Choice Vouchers (HCV)
units authorized;

Number of MTW HCV authorized at the end of the
Plan year, discuss any changes over 10%;

Number of non-MTW HCV units authorized; and

Number of non-MTW HCV authorized at the end of
the Plan year, discuss any changes over 10%;

Number of HCV units to be project-based during
the Plan year, including description of each
separate project.

Number of HCV units project-based during the Plan
year, including description of each separate project;
and
Overview of other housing managed by the Agency,
eg., tax credit, state-funded, market rate.

B. Leasing Information - Actual
B. Leasing information, Planned - this information is
estimated and may be subject to change during the
Plan year.
Total number of MTW PH units leased in Plan year;
Anticipated total number of MTW PH units leased
in the Plan year;
Total number of non-MTW PH units leased in Plan
Anticipated total number of non-MTW PH units
year;
leased in the Plan year;
Total number of MTW HCV units leased in Plan
Anticipated total number of MTW HCV units leased
year;
in the Plan year;
Total number of non-MTW HCV units leased in Plan
Anticipated total number of non-MTW HCV units
year;
leased in the Plan year; and
Description of any issues related to leasing of PH or
Description of anticipated issues relating to any
HCVs; and
potential difficulties in leasing units (HCV or PH).
Number of project-based vouchers committed or in
use at the end of the Plan year, describe project
where any new vouchers are placed (include only
vouchers where Agency has issued a letter of
commitment in the Plan year).

Optional in Plan: Number of project-based
vouchers in-use at the start of the Pian year.

C. Waiting List Information

C. Waiting List Information
Description of anticipated changes in waiting lists
(site-based, community-wide, HCV, merged); and

Number and characteristics of households on the
waiting lists (all housing types) at the end of the plan
year; and

Description of anticipated changes in the number
of families on the waiting list(s) and/or opening and
closing of the waiting list(s).

Description of waiting lists (site-based, communitywide, HCV, merged) and any changes that were
made in the past fiscal year.

Ill, Non-MTW Related Housing Authority lnfonnatlon (Optional)
A. List planned sources and uses of other HUD or
other Federal Funds (excluding HOPE VI); and

~

A. List planned vs actual sources and uses of other
HUD or other Federal Funds (excluding HOPE VI); and

Attachment B
2
P000018

 0MB Control Number: 2577-0216
Expiration Date: 08/31/2011
8. Description of non-MTW activites proposed by the
Agency.

8. Description of non-MTW activities implemented by
the Agency.

IV. Long-term MTW Plan (Optlona0
Describe the Agency's long-term vision for the
direction of its MTW program, extending through the
duration of the MTW Agreement.

Describe the Agency's long-term vision for the direction
of its MTW program, extending through the duration of
the MTW Agreement.

Attachment 8
3
P000019

 0MB Control Number: 2577-0216
Expiration Date: 08/31/2011

V. Proposed MTW Activities: HUD approval requested
(orovlde the Usted items below grouped by each MTW activiM
A. Describe any activities that were proposed in the
A. Describe each proposed MTW activity ;
Plan, approved by HUD, but not implemented, and
discuss why these activities were not implemented.
B. Describe how each proposed activity relates to at
least one of the three statutory objectives;
C. Identify and discuss the anticipated impact of each
proposed MTW activity on the stated objective;

(All proposed activities that are granted approval by
HUD will be reported on in Section VI as "ongoing
activities.")

D. Describe baselines, proposed benchmarks, and
metrics to assess outcomes, include anticipated
schedules;
E. Describe the data collection process and the
proposed metrics the Agency will use to measure how
this activity will achieve one or more of the MTW
statutory objectives;
F. Cite the authorization(s) detailed in Attachment C or
D of this Restated Agreement that give the Agency the
flexibility to conduct the activity. Every reasonable
effort will be made by the Agency to reference the
complete and correct statute or regu lation application
to a pa rticular initiative; however, failure to cite the
correct or entire statute or regu lation will not be
grounds for disapproval of such initiative in an Annual
MTW Plan nor will such failure invalidate the use of the
MTW authority necessary to implement and support
the initiative; and

(All proposed activities that are granted approval by
HUD will be reported on in Section VI as "ongoing
activities.")

G. Provide the following information for any rent reform
initiatives:
Agency 's Board aoorova l of policy;
Impact Analysis;
Annual reevaluation of rent reform initiative ;
Hardship case criteria ;
Transition oeriod ; and
Documentation of pub lic hearing (may be same
as Annual Plan hearino).

VI. Ongoing MTW Activities: HUD approv.-1 previously granted

'

~

(orovlde the listed items below arouoed bv each MTW activiM
A. List activities continued from the prior plan year(s) ; A. List activities continued from the prior Plan year(s) ;
specify the Plan Year in which the activity was first
identified and implemented;

specify the Plan Year in which the activity was first
identified and implemented ;

Attachment B
4
P000020

 0MB Control Number: 2577-0216
Expiration Date: 08/31/2011
8. Provide an update on the status of the activity;

B. Provide detailed information on the impact of the
activity and compare against the proposed benchmarks,
and metrics to assess outcomes, including if activity is
on schedule. For rent reform initiatives, describe the
result of any hardship requests. [The Agency will need
to develop benchmarks and evaluation metrics for all
ongoing MTW activities. For MTW activities that were
implemented prior to the execution of this Amended and
Restated Agreement, the Agency does not have to
provide this information for past years. The Agency will
establish the benchmarks and metrics in the first year
that it Reports under this new format.];

C. For the Plan year, indicate if the Agency anticipates C. If benchmarks were not achieved or if the activity
any changes, modifications, or additions to Attachment was determined ineffective, provide a narrative
explanation of the challenges, and, if possible, identify
C authorizations; and
potential new strategies that might be more effective;
D. Describe if the Agency is using outside evaluators.

D. If benchmarks or metrics have been revised; identify
any new indicator(s) of activities status and impact (e.g.
after 2 years of rent reform only 6 hardship cases);
E. If data collection methodology has changed, describe
original data collection methodology and any revisions
to the process or change in data collected;
F. If a different authorization from Attachment C or D
was used than was proposed in the Plan, provide the
new authorization and describe why the change was
necessary; and
G. Cite the specific provision(s) of the Act or regulation
that is waived under MTW (as detailed in Attachment C
or D of this Restated Agreement) that authorized the
Agency to make the change, and briefly describe if and
how the waived section of the Act or regulation was
necessary to achieve the MTW activity With respect to
requirements related to statutory or regulatory cites, the
following is agreed: Every effort will be made by the
Agency to reference the complete and correct statute or
regulation application to a particular initiative; However,
failure to cite to the correct or entire statute or regulation
will not be grounds for disapproval of such initiative in
an Annual Plan nor will such failure invalidate the use of
the MTW authority necessary to implement and support
the initiative.

Vrt. Sources and Uses of Funding

A List planned sources (Operating, Capital, HCV) and A List planned vs actual sources (Operating, Capital,
uses of MTW funds;

and HCV) and uses of MTW Funds (excluding HOPE
VI). Provide a narrative description of any major
changes from the approved MTW Plan;
Attachment B
5
P000021

 0MB Control Number: 2577-0216
Expiration Date: 08/31/2011
B. List planned sources and uses of State or local
funds ;
C . If applicable, list planned sources and uses of the
COCC ;
D. If using a cost allocation or fee-for-service approach
that differs from 19 37 Act requirements, describe the
deviations and the reasons therefore ; and

E. List or describe use of single-fund flexibility , if
applicable, describe uses across traditional program
lines or special circumstances in support of an MTW
activity.

B. List planned vs actual sources and uses of State or
local funds;
C. If applicable, list planned vs actual sou rces and uses
of the COCC ;
D. If using a cost allocation or fee-for-service approach
that differs from 1937 Act requirements , describe the
actual deviations that were made during the Plan year;
and
E. List or describe planned vs actual use of single-fund
flexibility .

F. Optional - List reserve balances at beginning of the F. Optional - List planned vs actual reserve balances at
the end of the plan year.
Plan year.
G. Optional - In plan appendix, provide planned vs
planned
provide
Appendix,
Plan
In
G. Optional
actual sources and use by AMP.
sources and uses by AMP .
..,
•

VIII. Administrative

'

"

The Agency will provide the foll owing :
A. Resolution signed by the Board of Commissioners,
or other authorized PHA official if there is no Board of
Commissioners, adopting the Annual MTW Plan
Certification of Compliance (provided at the end of this
Attachment B); and

The Agency will provide the following :
A. Description of progress on the correction or
elimination of observed deficiencies cited in monitoring
visits , physical inspections, or other oversight and
monitoring mechanisms, if applicable;

B. Description of any planned or ongoing Agencydirected evaluations of the demonstration, if
applicable.

B. Results of latest Agency-directed evaluations of the
demonstration, as applicable;
C. Performance and Evaluation Report for Capital Fund
activities not included in the MTW Block Grant, as an
attachment to the Report; and
D. Certification that the Agency has met the three
statutory requirements of: 1) assuring that at least 75
percent of the families assisted by the Agency are very
low-income families ; 2) continu ing to assist
substantially the same total number of eligible lowincome families as would have been served had the
amounts not been combined; and 3) maintaining a
comparable mix of families (by family size) are served,
as would have been provided had the amounts not been
used under the demonstration .

Attachment B
6
P000022

 0MB Control Number: 2577-0216
Expiration Date: 08/31/2011

Annual Moving to Work Plan
Certifications of Compliance

U.S. Department of Housing and Urban Development
Office of Public and Indian Housing

Certifications of Compliance with Regulations:
Board Resolution to Accompany the Annual Moving to Work Plan
Acting on behalf of the Board of Commissioners of the Public Housing Agency (PHA) listed below, as its Chairman or
other authorized PHA official if there is no Board of Commissioners, I approve the submission of the Annual Moving to
Work Plan for the PHA fiscal year beginning ____, hereinafter referred to as "the Plan", of which this document is a
part and make the following certifications and agreements with the Department of Housing and Urban Development (HUD)
in connection with the submission of the Plan and implementation thereof:
The PHA published a notice that a hearing would be held, that the Plan and all information relevant to the public
l.
hearing was available for public inspection for at least 30 days, that there were no less than 15 days between the public
hearing and the approval of the Plan by the Board of Commissioners, and that the PHA and conducted a public hearing to
discuss the Plan and invited public comment.
The Agency took into consideration public and resident comment before approval of the Plan by the Board of
2.
Commissioners or Board of Directors in order to incorporate any public comments into the Annual MTW Plan;
The PHA will carry out the Plan in conformity with Title VI of the Civil Rights Act of 1964, the Fair Housing Act,
3.
section 504 of the Rehabilitation Act of l 973, and title II of the Americans with Disabilities Act of 1990.
The PHA will affirmatively further fair housing by examining their programs or proposed programs, identify any
4.
impediments to fair housing choice within those programs, address those impediments in a reasonable fashion in view of
the resources available and work with local jurisdictions to implement any of the jurisdiction's initiatives to affirmatively
further fair housing that require the PHA's involvement and maintain records reflecting these analyses and actions.
The PHA will comply with the prohibitions against discrimination on the basis of age pursuant to the Age
5.
Discrimination Act of 1975.
The PHA will comply with the Architectural Barriers Act of 1968 and 24 CFR Part 41, Policies and Procedures for
6.
the Enforcement of Standards and Requirements for Accessibility by the Physically Handicapped.
The PHA will comply with the requirements of section 3 of the Housing and Urban Development Act of 1968,
7.
Employment Opportunities for Low-or Very-Low Income Persons, and with its implementing regulation at 24 CFR Part
The PHA will comply with requirements with regard to a drug free workplace required by 24 CFR Part 24, Subpart F.
8.
The PHA will comply with requirements with regard to compliance with restrictions on lobbying required by 24 CFR
9.
Part 87, together with disclosure forms if required by this Part, and with restrictions on payments to influence Federal
Transactions, in accordance with the Byrd Amendment and implementing regulations at 49 CFR Part 24.
IO. The PHA will comply with acquisition and relocation requirements of the Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970 and implementing regulations at 49 CFR Part 24 as applicable.
11. The PHA will take appropriate affirmative action to award contracts to minority and women's business enterprises
under 24 CFR 5.105( a).
12. The PHA will provide HUD or the responsible entity any documentation that the Department needs to carry out its
review under the National Environmental Policy Act and other related authorities in accordance with 24 CFR Part 58.
13. With respect to public housing the PHA will comply with Davis-Bacon or HUD determined wage rate requirements
under section 12 of the United States Housing Act of 1937 and the Contract Work Hours and Safety Standards Act.
I 4. The PHA will keep records in accordance with 24 CFR 85.20 and facilitate an effective audit to determine
compliance with program requirements.
15. The PHA will comply with the Lead-Based Paint Poisoning Prevention Act and 24 CFR Part 35.

Attachment B
7
P000023

 0MB Control Number: 2577-0216
Expiration Date: 08/31/2011
16. The PHA will comply with the policies, guidelines, and requirements of 0MB Circular No. A-87 (Cost Principles for
State, Local and Indian Tribal Governments) and 24 CFR Part 85 (Administrative Requirements for Grants and
Cooperative Agreements to State, Local and Federally Recognized Indian Tribal Governments.).
17. The PHA will undertake only activities and programs covered by the Plan in a manner consistent with its Plan and
will utilize covered grant funds only for activities that are approvable under the Moving to Work Agreement and Statement
of Authorizations and included in its Plan.
18. All attachments to the Plan have been and will continue to be available at all times and all locations that the Plan is
available for public inspection. All required supporting documents have been made available for public inspection along
with the Plan and additional requirements at the primary business office of the PHA and at all other times and locations
identified by the PHA in its Plan and will continue to be made available at least at the primary business office of the PHA.

PHAName

PHA Number/HA Code

I hereby certify that all the information stated herein, as well as any information provided in the
accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements.
Conviction may result in criminal and/or civil penalties. (18 U.S.C. 1001, 1010, 1012; 31 U.S.C. 3729, 3802)

Name of Authorized Official

Title

Signature

Date

SDHC Note: A summary of the Plan initiatives was available for 30 days before the hearing,
however, the Plan and all the attachments were not available until after the hearing. Any
comments received will be forwarded.

Attachment B
8
P000024

 12-11-07
ATTACHMENT C
STATEMENT OF AUTHORIZATIONS
TO
AMENDED AND RESTATED MOVING TO WORK AGREEMENT
BETWEEN
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
AND
AGENCY

A. General Conditions

1. This Statement of Authorizations describes the activities that the Public Housing
Authority (Agency) may carry out under the Moving to Work (MTW) Demonstration
program, subject to the terms and conditions of the Amended and Restated Moving to
Work Demonstration Agreement (Restated Agreement) between the Agency and the U.S.
Department of Housing and Urban Development (HUD).
2. Unless otherwise provided in Attachment D of the Restated Agreement, the Agency's
MTW Demonstration Program applies to all of the Agency's public housing assisted
units (including Agency-owned properties and units comprising a part of mixed-income,
mixed finance communities) tenant-based Section 8 voucher assistance (hereinafter
referred to as the "Housing Choice Voucher Program"), Section 8 project-based voucher
assistance under Section 8(0) and Homeownership units developed using Section 8(y)
voucher assistance.
3. The purpose of the Statement of Authorizations is to delegate to the Agency the authority
to pursue locally driven policies, procedures and programs with the aim of developing
better, more efficient ways to provide housing assistance and incentives to selfsufficiency to low, very-low, and extremely low-income families. The authorizations
listed in this Attachment C are granted fully without requiring any additional HUD
authorizations, as necessary to implement the activities described in the Annual MTW
Plan. The Agency may proceed with activities based upon these authorizations once the
activity has been included in the Annual MTW Plan, in accordance with Attachment B,
and HUD has approved the Plan and activities. HUD will review and approve these
documents to ensure that the Annual MTW Plan has provided meaningful citizen
participation, taking into account comments from a public hearing and any other
comments on the proposed program, as well as providing for, receiving, and
meaningfully considering comments from current and prospective residents who would
be affected. HUD will also review in order to ascertain that these activities are within the
MTW authorizations provided by HUD.
4. The Agency reaffirms that it will comply with all applicable nondiscrimination and equal
opportunity requirements set forth in 24 CFR 5.105(a), and will administer its programs
and activities in a manner affirmatively to further fair housing. In particular, the Agency

Attachment C
P000025

 12-11-07

must make reasonable modifications and accommodations needed by applicants and
residents and must make units accessible in accordance with the Needs Assessment and
Transition Plan as required under Section 504 of the Rehabilitation Act of 1973 and its
implementing regulations.
B. Authorizations Related to Both Public Housing and Section 8 Housing Choice Vouchers

1. Single Fund Budget with Full Flexibility
This authorization waives certain provisions of Sections 8 and 9 of the 193 7 Act and 24
C.F.R. 982, and 990 as necessary to implement the Agency's Annual MTW Plan.
a.

The Agency may combine funding awarded to it annually pursuant to Section 8(0),
9(d) and 9(e) of the 1937 Act into a single, authority-wide funding source ("MTW
Funds"). However, section 9(d) funds are still subject to the obligation and
expenditure deadlines and requirements provided in section 9(i) despite the fact that
they are combined in a single fund. The funding amount for the MTW Funds may be
increased by additional allocations of housing choice vouchers to which the Agency
is entitled over the term of the Agreement. Special purpose vouchers will not be
included in the MTW Funds during their initial term, though some may be included in
the MTW Funds upon renewal.

b. The Agency may use MTW Funds for any eligible activity under Sections 9(d)(l),
9(e)(l) and Section 8(0) of the 1937 Act. Within the scope of the permissible eligible
activities, the Agency can carry out the purposes of the MTW Demonstration
Program to provide flexibility in the design and administration of housing assistance
to eligible families, to reduce cost and achieve greater cost effectiveness in Federal
expenditures, to give incentives to families with children where the head of household
is working, seeking work, or is preparing for work by participating in job training,
educational programs, or programs that assist people to obtain employment and
become economically self-sufficient, and to increase housing choices for low-income
families, through activities that would otherwise be eligible under sections 8 and 9 of
the 193 7 Act, including, but not limited to, the following activities:
1.

Provision of Capital funds or operating assistance to housing previously
developed or operated pursuant to a contract between HUD and the Agency or
newly acquired or developed pursuant to section ii below.

ii. The acquisition, new construction, reconstruction or moderate or substantial
rehabilitation of housing (including, but not limited to, assisted living, or other
housing as deemed appropriate by the Agency, in accordance with its mission), or
commercial facilities consistent with the objectives of the demonstration. Such
activities may include but are not limited to real property acquisition, site
improvement, development of utilities and utility services and energy efficiency
systems, conversion, demolition, financing, administration and planning costs,
relocation and other related activities; provided, however, that prior HUD

Attachment C

2
P000026

 12-11-07

approval is required for the development of any incremental public housing units,
pursuant to Section 9(g)(3) of the 193 7 Act.
iii. The provision of housing or employment-related services or other case
management activities, such as housing counseling in connection with rental or
homeownership assistance, energy auditing, activities related to the provision of
self-sufficiency and other services, employment counseling, education, training
and other services related to assisting tenants, owners, contractors, and other
persons or entities participating or seeking to participate in other housing or
training and educational activities assisted pursuant to this section.
iv. The provision of management services, including preparation of work
specifications, loan processing, inspections, tenant selection, management of
tenant and project-based rental assistance and management of housing projects or
other facilities or operations developed under this program.
v. The provision of safety, security, and law enforcement measures and activities
appropriate to protect residents of housing from crime.
vi. The provision of Housing Choice Voucher assistance or project-based rental
assistance (under Section 8(0)), alone or in conjunction with other private or
public sources of assistance.
vii. The preservation of public housing and/or Housing Choice Voucher units
currently serving people of low income or the acquisition and/or development of
new units for people of low income, provided that all rehabilitation and
construction is done in accordance with the requirements of Section 504 of the
Rehabilitation Act and where applicable, the design and construction
requirements of the Fair Housing Act.
viii.If the Agency chooses to establish single fund flexibility, the Agency is
authorized to use housing assistance payments for purposes other than payments
to owners, so long as these purposes are consistent with other eligible uses of
section 8 and section 9 funds.
c. These activities may be carried out by the Agency, by an entity, agent, or
instrumentality of the Agency, a partnership, a grantee, contractor, or other
appropriate party or legal entity.
d. The Agency's expenditures must comply with 0MB Circular A-87, which provides
basic guidelines for the use of federal funds, and with this MTW Agreement.
e. The Agency may use capital funds (including development and replacement housing
factor funds) in accordance with this Agreement.

Attachment C

3
P000027

 12-11-07
2. Partnerships with For-Profit and Non-Profit Entities
The Agency may partner with for-profit and non-profit entities, subject to 24 C.F .R. Part
85 and 941.602(d), including, mixed-income, mixed-finance development partners and
third party management companies, as well as affiliates and instrumentalities of the
Agency ("Agency Partners"), to implement and develop all or some of the initiatives that
may comprise the Agency's MTW Demonstration Program. The Agency may, with
respect to MTW eligible activity and when working with or partnering with such
partners, make available to Agency Partners the least restrictive regulatory requirements
allowable based on Agency's participation in the MTW Demonstration Program and that
agreements with Agency Partners may reflect the implementation of less restrictive
regulatory requirements. This authorization waives certain provisions of Sections 13 and

35 of the 1937 Act and 24 C.F.R. 941 Subpart Fas necessary to implement the Agency's
Annual MTW Plan.
3. Definition of Elderly Family
The Agency is authorized to amend the definition of elderly to include families with a
head of household or family member who is at least 55 years old, and must be in
compliance with the all Fair Housing Requirements, in particular the Housing for Older
Persons Act of 1995. This authorization waives certain provisions of Section 3 (b)(3)

and (G) of the 1937 Act and 24 C.F.R. 5.403 as necessary to implement the Agency's
Annual MTW Plan.
4. Transitional/Conditional Housing Program
The Agency may develop and adopt new short-term transitional housing programs,
consistent with an eligible use of section 8 and 9 funds, with supportive services in one or
more buildings in collaboration with local community-based organizations and
government agencies. Successful participants in these programs will be eligible for
transfer to the Agency's public housing or housing choice voucher programs. The
Agency will ensure that these programs do not have a disparate impact on protected
classes, and will be operated in a manner that is consistent with the requirements of
Section 504 of the Rehabilitation Act. More specifically, under no circumstances will
residents of such programs be required to participate in supportive services that are
targeted at persons with disabilities in general, or persons with any specific disability. In
addition, admission to any of the programs developed under this section will not be
conditioned on the presence of a disability or a particular disability. This section is not
intended to govern the designation of housing that is subject to Section 7 of the 1937 Act.

This authorization waives certain provisions of Sections 3, 4, 5, 8, and 9 of the 1937 Act
and 24 C.F.R. 941, and 960 Subpart Bas necessary to implement the Agency's Annual
MTW Plan.
5. Investment Policies
Subject to HUD approval, the Agency is authorized to adopt investment policies
consistent with state law to the extent such policies are in compliance with applicable
0MB circulars and other federal laws. The Agency shall invest only in securities
authorized under state law that will allow the flexibility to invest productively and
efficiently. This authorization waives certain provisions of Section 6(c)(4) of the 1937

Act and 24 C.F.R. 982.156 as necessary to implement the Agency's Annual MTW Plan.

Attachment C

4
P000028

 12-11-07

C. Authorizations Related to Public Housing Only
1. Site Based or Geographic Area Waiting List System
The Agency is authorized to implement a locally designed waiting list system in lieu of
the specific procedural requirements of 24 C.F.R. Part 903 provided that it provides
applicants with a reasonable choice of location in accordance with title VI of the Civil
Rights Act, the Fair Housing Act, and other applicable civil rights requirements. The
Agency may implement additional site-based waiting lists under this MTW Agreement.
Such additional site-based waiting lists will be developed, at the Agency's option, to
address various situations, including, but not limited to the following: (l) any existing or
new or mixed-income, mixed finance communities; (2) any on-site and/or off-site public
housing replacement units developed in support of the Agency's redevelopment or HOPE
VI efforts, if any; (3) any specially designated public housing or project-based
communities; and (4) combining or separating waiting lists for Section 8 tenant-based or
project-based assistance, public housing rental communities, homeownership
This authorization
opportunities, and mixed-income, mixed-finance communities.
waives certain provisions of Section 6(r) of the 1937 Act and 24 C.F.R. 903. 7 as

necessary to implement the Agency's Annual MTW Plan.
2. Local Preferences and Admission and Continued Occupancy Policies and Procedures
The Agency is authorized to develop and adopt local preferences and admission policies
and procedures for admission into the public housing program in lieu of HUD statutes,
regulations or other requirements based in the 193 7 Act so long as the families assisted
qualify as low income, and that the total mix of families assisted meets the requirements
of part I.C of the Amended and Restated MTW Agreement. The Agency is required to
revise the Admissions and Continued Occupancy Policy (ACOP), to implement changes
in public housing occupancy policy as a result of the MTW program. Regardless of
changes to the Agency's adopted ACOP policies and procedures, the Agency must
comply with Sections I(B)(l) and II(D) of this Agreement. The Agency is subject to state
and local preferences law. This authorization waives certain provisions of Section 3 of

the 1937 Act and 24 C.F.R. 960.206 as necessary to implement the Agency's Annual
MTW Plan.
3. Deconcentration Policy
The Agency is authorized to develop and adopt a local policy designed to provide for
deconcentration and income mixing in public housing communities. This authorization

waives certain provisions of Section 16(3)(B) of the 1937 Act and 24 C.F.R. 903.2 as
necessary to implement the Agency's Annual MTW Plan.
4. Initial, Annual and Interim Income Review Process
The Agency is authorized to restructure the initial, annual and interim review process in
the public housing program in order to affect the frequency of the reviews and the
methods and process used to establish the integrity of the income information provided.
In addition, the Agency is expressly authorized to adopt a local system of income
verification in lieu of the current HUD system. For example, the Agency may implement
alternate time frames for validity of verification or adopt policies for verification of
income and assets through sources other than those currently allowed under the 193 7 Act.

This authorization waives certain provisions of sections 3(a)(l) and 3(a}(2) of the 1937

Attachment C

5
P000029

 12-11-07
Act and 24 C.F.R. 966.4 and 960.257, as necessary to implement the Agency's Annual
MTW Plan.

5. Use of Public Housing as an Incentive for Economic Progress
The Agency is authorized to modify current public housing occupancy policies to use
housing as an incentive for making economic progress, as long as Section 11.C. of the
MTW Agreement is adhered to. Such modifications may include revising maximum
income limits for admission or continued occupancy. Families denied admission or
continued occupancy shall continue to be entitled to the right to an informal hearing.
This authorization waives certain provisions of Section 6(c) of the 1937 Act and 24
C.F.R. 960.201, as necessary to implement the Agency's Annual MTW Plan.
6. Incentives for Underutilized Developments
The Agency is authorized to develop and offer incentives that will attract applicants to
This
developments, or portions thereof, which have been difficult to market.
authorization waives certain provisions of Section 3(a)(2) and 3(a)(3)(A) of the 1937 Act
and 24 C.F.R. 960 subpart B as necessary to implement the Agency's Annual MTW Plan.
7. Simplification of the Development and Redevelopment Process for Public Housing
This authorization waives certain provisions of Sections 4, 5, 9, 24, 32 and 35 of the 1937
Act and 24 C.F.R. 941 as necessary to implement the Agency's Annual MTW Plan.
a. The Agency may, at its own discretion, allow any authorizations and regulatory relief
granted to the Agency pursuant to this MTW Agreement to inure to the benefit of the
Agency's Partners with respect to MTW eligible activities, and HUD hereby agrees to
the amendment of any and all evidentiaries necessary to implement the least
restrictive regulatory requirements allowable.
b. The Agency is authorized to establish reasonable low-income homeownership
programs, such as a lease-to-own program, that are not limited by the existing public
housing homeownership requirements, provided that units can only be sold to current
public housing residents and that any disposition of current public housing units must
be approved in advance by HUD. Any disposition application will be submitted and
processed in accordance with this Agreement.
8. Streamlined Demolition and Disposition Procedures
The Agency may choose to follow HUD's "Streamlined Processing Instructions for
Disposition, Demolition, and Disposition/Demolition Applications from MTW
Agencies."
9. Simplification of Property Management Practices
The Agency is authorized to simplify property management practices as follows:
a. The Agency is authorized to deploy a risk management approach in establishing
property and system inspection protocols and frequencies in lieu of the HUD
requirements of annual inspections by Agencies, as long as these protocols assure that
housing units assisted under the demonstration meet housing quality standards
approved or established by the Secretary. This authorization waives certain
provisions of Section 6 (f) of the 1937 Act and 24 C.F.R. 902-Subpart Bas necessary
to implement the Agency's Annual MTW Plan.

Attachment C

6
P000030

 12-11-07

b. The Agency is authorized to develop and adopt a new form of local lease and
establish community rules, grievance procedures, tenant self-sufficiency requirements
and reasonable tenant fees based on proven private management models (subject to
State and local laws), provided that no-cause evictions are not permitted. This
authorization waives certain provisions of Section 6 (l) of the 1937 Act and 24 C.F.R.
966 Subparts A and Bas necessary to implement the Agency's Annual MTW Plan.
10. Special Admissions and Occupancy Policies for Certain Public Housing Communities
The Agency is authorized to involve a broad spectrum of community stakeholders,
including advocacy groups, in a process to explore and adopt reasonable restrictions for
occupancy of specific public housing buildings in the Agency's inventory. Buildings, or
portions of buildings (floors, units), may be designated as Smoke-Free, Pet-Free or
Assisted Living (or other similar reservations). The Agency may establish admissions
preferences in order to establish these special occupancy requirements. A key goal of
this initiative will be to ensure that the Agency is able to maintain and improve the
quality of life in the Agency communities. These reservations or policies must not have a
disparate impact on protected classes and must be operated in a manner that is consistent
with the requirements of Section 504 of the Rehabilitation Act. Any such designations or
policies will include adequate safeguards for the disabled, including protections for
disabled persons who are Agency residents and those seeking housing assistance.
Residents can voluntarily participate in any of the services provided. Once adopted, the
designations or policies will be updated and reviewed as part of the Annual MTW Plan
and Report submitted by the Agency for HUD's review. In particular, the Agency will
review the demographic make-up of its current resident population and applicants to
assess the need for and support any changes to its designations or policies. This
authorization waives certain provisions of Sections 3, 6, 7, 16, and 31 of the 1937 Act
and 24 C.F.R. 945 subpart C, 960 Subparts B, D, E and G as necessary to implement the
Agency's Annual MTW Plan.
11. Rent Policies and Term Limits
The Agency is authorized to determine family payment, including the total tenant
payment, the minimum rent, utility reimbursements and tenant rent. The Agency is
authorized to adopt and implement any reasonable policies for setting rents in public
housing including but not limited to establishing definitions of income and adjusted
income, or earned income disallowance that differ from those in current statutes or
regulations. The Agency is authorized to adopt and implement term limits for its public
housing assistance. Such policies must include provisions for addressing hardship cases.
This authorization waives certain provisions of Section 3(a)(2), 3(a)(3)(A) and Section
6(/) of the 1937 Act and 24 C.F.R. 5.603, 5.611, 5.628, 5.630, 5.632, 5.634 and 960.255
and 966 Subpart A as necessary to implement the Agency's Annual MTW Plan.
12. Design Guidelines
The Agency is authorized to establish reasonable and modest design guidelines, unit size
guidelines and unit amenity guidelines for development and redevelopment activities that
will replace HUD guidelines with guidelines that reflect local marketplace conditions for
quality construction in its locality so long as all units meet housing quality standards
approved by the Secretary. This authorization waives certain provisions of Sections 4, 5,
and 9 of the 1937 Act and 24 C.F.R. 941.202, 941.203, 941.401, and 941.403 as

Attachment C

7
P000031

 12-11-07

necessary to implement the Agency's Annual MTW Plan.
13. Site Acquisition
The agency is authorized to acquire sites without prior HUD approval, provided that the
agency certifies that HUD site selection requirements have been met. This authorization
waives certain provisions of 24 C.F.R. 941.401 as necessary to implement the Agency's
Annual MTW Plan.
14. Commercial Business Venture
The Agency is authorized to enter into commercial business ventures as part of its
neighborhood revitalization or affordable housing strategies or other strategies designed
to serve as catalysts for revitalization of public housing or surrounding communities.
Any venture must be consistent with eligible uses of funds under Sections 8 and 9 of the
1937 Act. This authorization waives certain provisions of 24 C.F.R. 941 subpart Fas
necessary to implement the Agency's Annual MTW Plan.
15. Available Property
The Agency is authorized to make available public housing property including dwelling
and non-dwelling spaces and vacant land for the purpose of providing services, programs
This
and capital improvements that benefit residents and program participants.
authorization waives certain provisions of Section 9 of the 1937 Act and 24 C.F.R. 990
Subpart Bas necessary to implement the Agency's Annual MTW Plan.

16. Total Development Cost (TDC) limits
The agency is authorized to establish reasonable cost formulas for development and
redevelopment activities that will replace HUD's TDC limits in order to reflect local
marketplace conditions for quality construction in its locality. This authorization waives
certain provisions of Section 6(b) of the 1937 Act and 24 C.F.R. 941.306 as necessary to
implement the Agency's Annual MTW Plan.

D. Authorizations Related to Section 8 Housing Choice Vouchers Only

1. Operational Policies and Procedures
The Agency is authorized to determine the following basic operational policies and
procedures for all Section 8 assistance the Agency is provided under section 8(o) of the
1937 Act:
a. The Agency is authorized to determine the term and content of Housing Assistance
Payment (HAP) contracts to owners during the term of the MTW demonstration.
However, any revised HAP contract must include language noting that the funding
for the contract is subject to the availability of Appropriations. This authorization
waives certain provisions of Section 8(0)(7) of the 1937 Act and 24 C.F.R. 982.162 as
necessary to implement the Agency's Annual MTW Plan;
b. The Agency is authorized to determine the length of the lease period, when vouchers
expire and when vouchers will be reissued. This authorization waives certain
provisions ofSections 8(o)(7)(a), 8(o)(J3)(F) and 8(o)(13)(G) of the 1937 Act and 24
C.F.R. 982.303, 982.309 and 983 Subpart Fas necessary to implement the Agency's
Annual MTW Plan;

Attachment C

8
P000032

 12-11-07

c. The Agency is authorized to define, adopt and implement a reexamination program
that differs from the reexamination program currently mandated in the 1937 Act and
its implementing regulations. This authorization waives certain provisions of Section
8(0)(5) of the 1937 Act and 24 C.F.R. 982.516 as necessary to implement the
Agency's Annual M1W Plan;
d. The Agency is authorized to determine a damage claim and/or vacancy loss policy
and payment policy for occupied units that differs from the policy requirements
currently mandated in the 1937 Act and its implementing regulations. Damage and
vacancy authority are subject to state and local laws. This authorization waives
certain provisions of Section 8(0)(9), of the 1937 Act and 24 C.F.R. 982.311 as
necessary to implement the Agency's Annual MTW Plan;
e. The Agency is authorized to determine the percentage of housing voucher assistance
that it is permitted to project-base, and criteria for expending funds for physical
improvements on those units that differs from the percentage and criteria
requirements currently mandated in the 1937 Act and its implementing regulations.
This authorization waives certain provisions of Section 8(0)(13) of the 1937 Act and
24 C.F.R. 983 as necessary to implement the Agency's Annual MTW Plan;
f.

The Agency is authorized to determine property eligibility criteria, including types of
units currently prohibited by Section 8 regulations, as well as shared living facilities.
If the Agency chooses to use this authorization, it will need to provide a transition
plan to both the affected residents and HUD prior to the end of the demonstration.
This authorization waives certain provisions of Section 8(p) of the 1937 Act and 24
C.F.R. 983.53-54 and 982 Subparts Hand Mas necessary to implement the Agency's
Annual MTW Plan; and

g. The Agency is authorized to establish its own portability policies with other MTW
and non-MTW housing authorities. This authorization waives certain provisions of
Section 8(r) of the 1937 Act and 24 C.F.R. 982 Subpart Has necessary to implement
the Agency's Annual MTW Plan.
2. Rent Policies and Term Limits
a. The Agency is authorized to adopt and implement any reasonable policy to establish
payment standards, rents or subsidy levels for tenant-based assistance that differ from
the currently mandated program requirements in the 193 7 Act and its implementing
regulations. The Agency is authorized to adopt and implement any reasonable
policies to calculate the tenant portion of the rent that differ from the currently
mandated program requirements in the 193 7 Act and its implementing regulations.
This authorization waives certain provisions of Sections 8(o)(l), 8(0)(2), 8(0)(3),
8(0)(10) and 8(o)(l3)(H)-(I) of the 1937 Act and 24 C.F.R. 982.508, 982.503 and
982.518, as necessary to implement the Agency's Annual M1W Plan;

Attachment C

9
P000033

 12-11-07

b. The Agency is authorized to determine contract rents and increases and to determine
the content of contract rental agreements that differ from the currently mandated
program requirements in the 1937 Act and its implementing regulations. This
authorization waives certain provisions of Sections 8(0)(7) and 8(0)(13) of the 1937
Act and 24 C.F.R. 982.308, 982.451 and 983 Subpart E as necessary to implement
the Agency's Annual MTW Plan;
c. The Agency is authorized to develop a local process to determine rent reasonableness
that differs from the currently mandated program requirements in the 193 7 Act and its
implementing regulations. This authorization waives certain provisions of Section
8(0)(10) of the 1937 Act and 24 C.F.R. 982.507 as necessary to implement the
Agency's Annual MTW Plan; and
d. The Agency is authorized to implement term limits for HCV units designated as part
of the MTW demonstration. This authorization waives certain provisions of Sections
8(0)(7) and 8(o)(13)(F)-(G) of the 1937 Act and 24 C.F.R. 982 Subpart L and 983
Subpart E as necessary to implement the Agency's Annual MTW Plan.
3. Eligibility of Participants
a.

The Agency is authorized to determine income qualifications for participation in the
rental assistance program that differ from the currently mandated program
requirements in the 193 7 Act and its implementing regulations, as long as the
requirements that i) at least 75 percent of those assisted under the demonstration are
"very low-income" as defined in section 3(b)(2) of the 1937 Act, ii) substantially the
same number of low-income persons are assisted under the demonstration as would
be without the MTW authorizations contained herein, and iii) a comparable mix of
families are assisted under the Agreement as would have been otherwise in Section
I.C. of the MTW Agreement are met. This authorization waives certain provisions of
Sections 16(b) and 8(0)(4) of the 1937 Act and 24 C.F.R. 5.603, 5.609, 5.611, 5.628,
and 982.201 as necessary to implement the Agency's Annual MTW Plan; and

b. The Agency is authorized to adopt and implement any reasonable policy for verifying
family income and composition and for determining resident eligibility that differ
from the currently mandated program requirements in the 193 7 Act and its
implementing regulations. This authorization waives certain provisions of 24 C.F.R.
982.516 and 982 Subpart E, as necessary to implement the Agency's Annual MTW
Plan.
4. Waiting List Policies
The Agency is authorized to determine wa1tmg list procedures, tenant selection
procedures and criteria and preferences, including authorizing vouchers for relocation of
witnesses and victims of crime that differ from the currently mandated program
requirements in the 1937 Act and its implementing regulations. This authorization
waives certain provisions of Sections 8(0)(6), 8(o)(l 3)(J) and 8(0)(16) of the 1937 Act

Attachment C

10
P000034

 12-11-07

and 24 C.F.R. 982 Subpart E, 982.305 and 983 Subpart Fas necessary to implement the
Agency's Annual MTW Plan.
5. Ability to Certify Housing Quality Standards
The Agency is authorized to certify that housing assisted under MTW will meet housing
quality standards established or approved by HUD. The certification form will be
approved or provided by HUD. This authorization waives certain provisions of Section
8(0)(8) of the 1937 Act and 24 C.F.R. 982, Subpart I as necessary to implement the
Agency's Annual MTW Plan.
6. Local Process to Determine Eligibility
The Agency is authorized to adopt a local process for determining whether units meet
certain eligibility requirements, provided such requirements are part of the 193 7 Act.
This authorization waives certain provisions of Section 8(0)(13) of the 1937 Act and 24
C.F.R. 983 Subpart D as necessary to implement the Agency's Annual MTW Plan. This
includes, but is not limited to, the following:
a. The minimum expenditure requirement and the timing of rehabilitation and
construction of units.
b. The type of funds that may be used to rehabilitate or construct units.
c. Procedures to determine whether or not units meet the Agency's requirements
regarding rehabilitation and construction, including what information is required
to be submitted by owners to the Agency.
7. Establishment of an Agency MTW Section 8 Project-Based Program
The Agency is authorized to develop and adopt a reasonable policy and process for
project-basing Section 8 tenant-based leased housing assistance, which includes the
components set forth below:
a. The Agency is authorized to project-base Section 8 assistance at properties owned
directly or indirectly by the Agency that are not public housing, subject to HUD's
requirements regarding subsidy layering. If the Agency chooses to project-base
Section 8 assistance at such properties, the Agency recognizes and accepts that
such units would no longer be eligible for operating subsidy provided under
Section 9(e) of the 193 7 Housing Act or for future capital funds provided under
section 9(d) for those units if it chooses to use this authorization. Project-based
assistance for such owned units does not need to be competitively bid, nor are the
owned units subject to any required assessments for voluntary conversion. This
authorization waives certain provisions ofSections 8(o)(J3)(B and D) of the 1937
Act and 24 C.F.R. 982.1, 982.102 and 24 C.F.R. Part 983 as necessary to
implement the Agency's Annual MTW Plan;
b. The Agency is authorized to establish a reasonable competitive process or utilize
an existing local competitive process for project-basing leased housing assistance
at units that meet existing Housing Quality Standards, or any standards developed
by the Agency pursuant to this MTW Agreement and approved by the Secretary,
and that are owned by non-profit, or for-profit housing entities. This authorization
waives certain provisions of 24 C.F.R. 983.51 as necessary to implement the

Attachment C

11
P000035

 12-11-07

Agency's Annual MTW Plan;
c. The Agency is authorized to duly adopt, according to the requirements of local
law, alternate standards for determining the location of existing, newly
constructed or substantially rehabilitated housing to receive subsidy; provided,
however, that in lieu of the Site Selection Standards currently set forth in 24
C.F.R. Section 983.57, the agency will comply with the following requirements:
i.

The Agency will comply with the Fair Housing Act and Title VI of the Civil
Rights Act of 1964, and implementing regulations thereto, in determining the
location of newly constructed or acquired public housing units.

ii. Units may be located in the agency's jurisdiction, including within, but not
limited to, the following types of urban areas: ( 1) an area of revitalization that
has been designated as such by the governing jurisdiction, including
Redevelopment Areas and Enhanced Enterprise Communities, (2) an area
where public housing units were previously constructed and were demolished,
(3) a racially or economically impacted area where the agency plans to
preserve existing affordable housing, (4) in connection with a HOPE VI or
other HUD funded master planned development, (5) in areas where a needs
analysis indicates that subsidized housing represents a low percentage of the
total number of housing units in the area, or (6) relocating units to an area
with a lower concentration of public housing units.
iii. Conduct a housing needs analysis indicating that there is a real need for the
housing in the area; and
iv. When developing or substantially rehabilitating six or more Section 8 projectbased units, the agency will: (1) advise current residents of the subject
properties and representative community groups in the vicinity of the subject
property by letter to resident organizations and by public meeting, of the
agency's revitalization plan; and (2) certify to HUD in its Annual MTW
Report that the comments from Residents and representative community
groups have been considered in the revitalization plan. Documentation
evidencing that the agency has met the stated requirements will be maintained
at the housing authority and submitted to HUD in its Annual MTW Report.
d. All units that receive project-based Section 8 assistance must meet either (i)
existing HQS standards established by the Secretary or (ii) a local standard for
communities receiving project-based Section 8 assistance developed by the
Agency and approved by the Secretary pursuant to this MTW Agreement, as
applicable. This authorization waives certain provisions of Section 8(0)(8) of the
1937 Act and 24 C.F.R. 982 Subpart I as necessary to implement the Agency's
Annual MTW Plan.

Attachment C

12
P000036

 12-11-07
8. Homeownership Program
a. The Agency is authorized to establish reasonable Section 8 homeownership programs
that are not limited by the existing Section 8 homeownership requirements. This
authorization waives certain provisions of Section 8(0)(15) and 8(y) of the 1937 Act
and 24 C.F.R. 982. 625 through 982. 643 inclusive as necessary to implement the
Agency's Annual MTW Plan; and
b. The Agency is authorized to permit current public housing residents who are on a
merged waiting list to obtain a Section 8 homeownership voucher. This authorization
waives certain provisions of Sections 8(0)(15) and 8(y) of the 1937 Act and 24 C.F.R.
982.625 through 982.643 inclusive as necessary to implement the Agency's Annual
MTW Plan.
E. Authorizations Related to Family Self Sufficiency
The Agency is authorized to operate any of its ex1stmg self-sufficiency and trammg
programs, including its Family Self-Sufficiency (FSS) Program and any successor programs
exempt from certain HUD program requirements. These may include those requirements
governing program size or participation, including whether to establish escrow accounts and
other rent incentives and whether to establish mandatory self-sufficiency participation
requirements. If the Agency receives dedicated funding for an FSS coordinator, such funds
must be used to employ a self-sufficiency coordinator. In developing and operating such
programs, the Agency is authorized to establish strategic relationships and partnerships with
local private and public agencies and service providers to leverage expertise and funding.
However, notwithstanding the above, any funds granted pursuant to a competition must be
used in accordance with the NOF A and the approved application and work plan. This
authorization waives certain provisions of Section 23 of the 1937 Act and 24 C.F.R. 984 as
necessary to implement the Agency's Annual MTW Plan.

Attachment C

13
P000037

 ATTACH MENT D
COMMUN ITY-SPEC IFIC AUTHOR IZATION S

TO
AMENDE D AND RESTATE D MOVING TO WORK AGREEM ENT
BETWEE N
U.S. DEPARTM ENT OF HOUSING AND URBAN DEVELOP MENT
AND
SAN DIEGO HOUSING COMMIS SION

Authorizations Related to Section 8 Housing Choice Vouchers Only

In addition to the authorizations provided in Attachment C, D. l ., the San Diego Housing
Commission (Agency) is authorized to determine the inspection protocols and frequencies
for both Agency-owned and non-Agency-owned units. The Agency also is authorized to
conduct inspections and rent reasonableness determinations for Agency-owned units
directly, without engaging an independent third party. The Agency will utilize the same
inspection protocol and rent reasonableness methodology for both Agency-owned and nonAgency-owned units.
Not withstanding any language in this Agreement or its attachments, the Agency shall
follow the regulations at 24 CFR 941.202, 941.203, and 983.57.

315066.l 027016MISC
P000038

 APPENDIX C

(HA-2009-161

HOUSI~G AllTHORI TY OF
THE CITY OF SAN DIEGO

RESOLUT ION NUMBER HA-. __ \
DATE OF FIJ\:/\L PASSAGE

~t_ __

OEC

WHEREAS . the US Department of Housing and Urban Developme nt [HlJD] issued a
notice to the San Diego Housing Commissio n to reinstate it as a Moving to Work agency: and
WHEREAS , on November 21, 2008. the San Diego Housing Commissio n
recommend ed the Housing Authority authorize the application to HUD for participatio n
in the Moving to Work Program. which provides local flexibility to design and test
various approaches for providing and administeri ng housing assistance. including the combining

1,i Sectiun 8 and Public Housing funds: a focus on rent reform and simplificati on. dcsi~rr1
processes and practices that achieve greater administrati \'C efliciem:ies ; and
WHEREAS . locally the program will be known as "Moving Forward" to better reflect the
agency·s intent and broader purpose of the prnbrram: and
WHEREAS . HUD requires that the Housing Authority authorize the subrni~~1Pn of the

\1o\ing to\\ ,irk pr()ject: f\.OW. THEREFORE,
BE !T RESOL \TD. that the Ilou~ing Aut!wnt\ ,,f rhe Cir> nt Sap DicgP [ Authority;

- PAGE l OF"-·
P000039

 (HA-2009-16)

RE IT Fl .RTHER RESOLVED. that the Authority prnvidcs the following assurances to
Hl :[) regarding the Mming to Work probrram. to be knovm in San Diego as "\1oving Forward":

I.

At least 75%1 of the families initially assisted under \ATVv' hy the Housing

Commission will he very lov.-income families (i.e. families with incomes ofless than 50% of
area median income).

2.

The pro!:,rram establishes a reasonable rent policy that is designed to encourage

employment and self-sufficiency on the part of participating families, such as excluding all or a
portion of a family's earned (or newly earned) income for purposes of detennining rent.

3.

That the Commission will continue to assist substantially the same total number

of low-income families under the MTW pro!,,:rram as would have been served if the HCD funding
sources had not been combined.
4.

That under tbe program, the Commission will maintain a comparable mix of

families, hy family size, as would have been assisted if the HUD funding sources had not been
combined.

5.

That housing units assisted under MTW meets the housing quality standards

established nr appw\ ed by the Department.
h

That the program cnmpliec: wnh h1ir Hnusmg and Fqual OppurtunJty

Rt·q1.:1rcrnent,. a<- !isled in 24 CFR Part 5. a, well a, the Americans\\ ith Disabilities Act of i 490.

That the Cnrnmi<cs1on wlil proYide HLD with any docum-:niat;lm that the

and uthc:r related i.lUthtinties and lithcrwise v. ill assist the DtTarcmcnt in comp1y mg thl' :._; ( TR
Pan 50 en,·ironmental re\iew procedures. The San Diego Huu.'.'>ing Commission agrees ( i J to

- PAGE :2 OF'.'.\
P000040

 (HA-20 09-16)

alternat e eligible
caffv out any mitigat ing measur es require d by the Depart ment or select an
convert . lease.
propert y. if pennitt ed by the Depart ment and (ii) not to acquire. rehabili tate.
repair. or constru ct propert y until the Departm ent approval under

CFR is received.

Diego Housin g
BE IT FURTH ER RESOL VED. that the Executi ve Directo r of the San
docume nts require d to
Commi ssion or his designe e is hereby authori zed to execute all necessa ry
receive such approva l.

APPRO VED: MICHA EL J. AGUIR RE. Genera l Counse l

~\r J \"

~

By ___ ___ __\_~- -)
Alex W. Sachs
Deputy Genera l Counse l

AWS:m m
111410 8

Or.Dep t: San Diego Housin g Comm.
HA-100 9-16
MMS# 7064

P000041

 the ti.dim, ing \ 011:
Yeas

Excused

Not Present

LJ

r···,

C

1oni :\th.ms

C

lJ

□

.\nthon) Young

L;

r,

□

n

□

C

□

C

□

Q

LJ

r

Brian t\1aicnschein

C

Donna l·ne

.lim :'vladaffcr

t .1

l~.:J

Ben l luesn

I.-...!

L.-J

.\ l TH k'.'TI( .\ IT D B, :
Scott Peters
Ch~ur uf" the I lliusing .\uthl)rity
,,j the Cit, l>I San Diego. Ca!iforn:a

l~L\Lj
Richard C Gcntrv
-~---I: \ccuti\e Din:clor ot tht.' Housing :\uthorit:, , ,i' the
C1t\ pf ~an 1)ic::.i1>. ( a!ifornu

1;,

\ n~ii· l<isotl i
lkput\ Secretary ,,fthc lluusing .\ut!Jt,rit:,
thL' ( J!\ 1.d ~<01 IJ;cg{). ('alif<;rn1a

:. 1 {

P000042

 SAN DIEGO HOUSING COMMISSION
RESOLUTION

NoJ- - - -

ADOPTED ON DECEMBER 8, 2008

WHEREAS, the San Diego Housing Commission has been authorized by the San Diego
Housing Authority to submit a Moving to Work application for status reactivation; and
WHEREAS, on December 8, 2008 the San Diego Housing Commission Board of
Commissioners authorized the President and Chief Executive Officer (CEO) to execute
the Amended and Restated Moving to Work Agreement; and
WHEREAS, on December 8, 2008 the San Diego Housing Commission Board of
Commissioners approved the submission of the proposed Annual Moving to Work Plans
for January 1, 2009 through June 30, 2009 and July 1, 2009 through June 30, 2010 and
additional Department of Housing and Urban Development (HUD) requested information
to HUD; and
BE IT FURTHER RESOLVED, that the CEO of the San Diego Housing Commission or
his designee is hereby authorized to execute all necessary Moving to Work documents,
including the MTW agreement, required to implement and operate the Moving to Work
program.

I HEREBY CERTIFY that the abovementioned is true and correct as passed and adopted
by the San Diego Housing Commission, of the City of San Diego, California on
December 8, 2008.
Vote:

Yeas NaysAbsent -

P000043

 San Diego Housing Commission Moving to Work Plan
,,

,

,,,,,

,,

MOVING FORWARD

Appendix D
Explanation of How the Housing Commission Took into Account Public
Comments

As noted in Appendix A, all public comments were positive and the residents
were very receptive to the initiatives. The Housing Commission will ensure,
upon implementation of the program, that residents and landlords are
sufficiently noticed of any impending programmatic changes. Additionally,
information and explanation will be given in order that residents are fully
aware of new resources of which they are eligible to avail themselves.

P000044

 filtc San Dirgo
SignOnf{t,1f,;fa;.1@.com
- , - ~-~

9t1 onrt _

erila.ce. Union..~ribune. kffalnews

sdm~etplace
.....-~..:--6.. ..:W,,""""" ..

P.O. Box 120191. San Diego, CA 92112 -0191

AFFIDAVIT OF PUBLICATION

PUBLIC NOTICE
The San Diego Houaing
Commission (•SOHC") announce. Its intent to pur-

SAN DIEGO HOUSING COMMISSION
1122 BROADWAY #300
ATTN: VICTORIA JOES
SAN DIEGO, CA 92105

1u•reactlvatlon oftt5Movtng To Work r.totus .tfec.
t lve January 1, 2809. The
MTW program ha Deport.
ment of Housin11 and Urban °""'elopm&nt (HUD)
p r o ~ that allow. highln9 housing au~
fhorltlH to make program
and POiicy changes to (1}
hout111'19
the
lncrear;•
d\olcn of tow--inc:ome fam-

STATE OF CALIFORNIA} ss.
County of San Diego}
T he Under sig ned, declares under penalty of perjury
under the laws of the State of California : That she is a
re s ident of the County of San Diego . That she is and at all
times herein mentioned was a citizen of the United States. over the age
of twenty-one years. and that she is not a party to. nor interested in the
above entitled matter; that she is Chief Clerk for the publisher of

The San Diego Union-Tribune,
a newspaper of general circulation • printed and published daily in the
City of San Diego, County of San Diego, and which newspaper is
published for the dissemination of local news and intelligence of a
general character, and which ne\\'spaper at all the times herein
mentioned had and still has a bona fide subscription list of paying
su bscribers. and which newspaper has been established. printed and
published at regular intervals in the said City of San Diego. County of
San Diego. for a period exceeding one year next preceding the date of
puhlication of the notice hereinafter referred to, and which newspaper is
not devoted to nor publ ishcd for the interests, entertainment or
instruction of a particular class, profession_ trade, calling. race. or
denomination. or any number of same: that the notice of which the
annexed is a printed copy, has been published in each regular and entire
issue of s01d newspaper and not in any supplement thereof on the
following date, to-wit
OCTOBER 10, 17, 2008

11 le1', (2) htlP rNld!llnts
odd- Nlf-avfflclency,
and (3) lnc-rHH the co,t.
etfacfh1ene111 of fe<lltrol
housing Dl'l>9n:tmll. As an
MTW nrtlcipanf, SOHC
Is !"l!<tUintd to dellelap an
MTW Annual. Plan 1hot
outline• ond Identifies polidn that tti. houaing ovthorlty plans to chon,e
oncl programs that may be

lmplemanted

comlng velll',

during ~
The Com-

m iuion ls 110 Uc ltlns public
comment on the pn:igrom
and ooHcv c:honget being
conafdermd for the bolance
Flscot Yew 2009
of
(through June 38, 2109)
and the Fiscal Year 2010
(July 1, 20® 1hrough June
30. 2010). An e,c.Clffll>Ae of
the orogrom and pollcy
changN being considered
Include~: RIICfllving HUO
block
a
funcllf'!!l . as
9ronV51n91e fund; assistIng more families than the

number a,,-,,.nttv allowed
1w f•r.al n,svlatlon; creating o declwflon tor

''workln.11 fomille.;• stand•
ordlz'lrfj deductlom; •impllfvlng the Jnsp11dlon and

v&rlflc-otlon

pr0Cff6 ,

o:r•

Inter•

invlte<t
111ted DetMln5
fo vi- the l)rclposcl on the
SOHCwalte!
(WWW .Jdhc.01'9)

beglnnil'.!I. October 10,
20~. SDHC wUI hold a
Public Hearlns to
and rwl- comrMl"lt regarding the d-r-aft MTW
proJlQSol on Wedne!!doy,
November 1f. 2009 fAm 2

~•lv•

p.m. vntfl , o.m. at lhe
SOHC

office located

at

1122 Broadway, -Fourth
Floor Conference Room.
Wrlttwn comsnentl regarding the MTW poUc:y/ progrom pni:-als conoe submitted by mal!.i>rlor to No•
Vl!mbeT 1.o&. 20111 to the f-olSOHC/
l~ln,9 address:
MTW, llZ! Broadway, Son
O'leg~ California 9'2101,AtCr-oig Velte.
tentlon,
Commenh may cllii:) be
amalled to: Crakl Velfl!,
ot:
Pro]ectCoor
.org
cralgv
Craig
:
MTW C
7534.
Velte of 61

Affidavit of Publication of

A d # (10 10129604

Ordtred hy : VICTORI A JOFS

APPENDIX A

P000045

 San Diego Housing Commission Moving to Work Plan

MOVING FORWARD

Appendix A - Continued

A Public Hearing was held on November 12, 2008 at the Housing Commission's central
office to give the public an opportunity to view and discuss the proposed Moving to
Work Plan. There were 21 attendees.
The Plan was distributed to the attendees and a PowerPoint presentation was given.
Afterwards, questions and comments were addressed by staff.
Public Comments were as follows:
•

•

•
•

There was a question about what a "safety net" would be for those households
who gain self-sufficiency and surrender their voucher. The proposed policy was
explained to the residents' satisfaction.
One resident asked that staff elaborate more fully on the process and requirements
to move from a high-poverty neighborhood to a low-poverty neighborhood. The
resident was satisfied and very enthusiastic about the MTW proposals relating to
assisting families move from areas of high-poverty.
Two residents wanted more details about using the voucher towards a
homeownership program. Staff outlined the proposal as presented in the Plan.
The security deposit program to assist households moving from high-poverty to
low-poverty neighborhoods garnered enthusiastic comments by a number of the
attendees.

The proposed Moving to Work Plan was positively acknowledged by all attendees with
no negative comments.

P000046

 12/29/2009

FIRST AMENDMENT
TO
MOVING TO WORK AGREEMENT
BETWEEN
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
AND
SAN DIEGO HOUSING COMMISSION
This First Amendment to the Moving to Work ("MTW") Agreement dated January 14, 2009
("Agreement") is entered into by and between the United States of America through the U.S.
Department of Housing and Urban Development ("HUD") and the San Diego Housing
Commission ("Agency") and is effective as of Apr i 1 15, 20J_Q__. Unless otherwise defined
herein, all capitalized terms used herein shall have the same meanings ascribed to them in the
Agreement. The Attachment D is amended as follows:
Attachment D is amended as follows:
Add the following language before Section A:

Use of MTW Funds (added 12/29/09)
The Agency and HUD acknowledge that Section 204(a) of the Omnibus Consolidated
Rescissions and Appropriations Act of 1996 (Pub. L. 104-134) provides that an agency
participating in the MTW demonstration program may combine public housing operating and
capital funds provided under Section 9 of the U.S. Housing Act of 1937 (the "1937 Act") and
voucher program funds provided under Section 8 of the 193 7 Act "to provide housing assistance
for low-income families, as defined in section 3(b)(2) of the 1937 Act, and services to facilitate
the transition to work on such terms and conditions as the agency may propose and the Secretary
may approve."
The Agency and HUD further acknowledge that the terms of the agreement under which the
Agency participated in the MTW demonstration program prior to the Amended and Restated
MTW Agreement (the "Original MTW Agreement") did not state that the use of such combined
public housing operating and capital funds and voucher program funds (collectively, ''MTW
Funds'') was restricted to those uses specified in Sections 8 and 9 of the I 937 Act.
The Agency and HCD hereby agree that they do not intend for the Amended and Restated MTW
Agreement to limit or restrict the authority to use MTW Funds as provided by the Original MTW
Agreement, that notwithstanding any language to the contrary, those provisions in this
Agreement or its attachments that restrict the use of funds to Sections 8 and 9 arc repealed, and
the Agency may use MTW Funds to provide housing assistance for low-income families, as
defined in section 3(b)(2) of the 193 7 Act, and services to facilitate the transition to work,
whether or not any such use is authorized by Sections 8 or 9 of the 1937 Act, provided such uses
are consistent with other requirements of the MTW statute [i.e., including but not limited to the
Fiist Amendment
San Diego Housing Commission

P000047

 12/29/2009
requirements to maintain a comparable mix of families and serve substantially the same number
of families as would have been assisted if the Agency were not in the MTW demonstration,
assuring that housing assisted under the demonstration meets housing quality standards
established or approved by the Secretary, that at least 75 percent of the families assisted be very
low income families, that the agency has established a reasonable rent policy that is designed to
encourage employment and self-sufficiency by participating families, that the requirements of
sections 12 of the 1937 Act are applied to any housing assisted under the demonstration other
than housing assisted solely because of occupancy by families receiving tenant-based assistance,
and that Section 18 of the 193 7 Act shall continue to apply to public housing notwithstanding the
use of any use of the housing under the demonstration] and have been proposed in an Agency's
Annual MTW Plan and approved by HUD.
Notwithstanding the above, such funds remain Federal funds, and are subject to any and all other
Federal requirements outside of the 1937 Act (e.g., including but not limited to Appropriations
Acts, competitive HUD notices of funding availability under which the Agency has received an
award, state and local laws, Federal statutes other than the 1937 Act, and 0MB Circulars and
requirements), as modified from time to time.

P000048

 12/29/2009
IN WITNESS WHEREOF, the parties have caused this First Amendment to be executed by their
duly authorized representatives.
SAN DIEGO HOUSING COMMISSION
By:
Name: Rick Gentry
Its:

President and CEO

UNITED STATES DEPARTMENT OF HOUSING
DEVELO
ANDU
By:
~.

ame:Sandra B. Henriquez
Its:
Date:

Assistant Secretary

0

First Amendment
San Diego Housing Commission

3
P000049

 12/29/09
ATTACHM ENTD
COMMUNITY-SPECIFIC AUTHORIZATIONS
TO
AMENDED AND RESTATED MOVING TO \VORK AGREEMEN T
BETWEEN
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
AND
SAN DIEGO HOUSING COMMISSION

This Attachment D describes and authorizes activities which may be implemented by the San
Diego Housing Commission (the "Agency") pursuant to the Moving to Work Agreement
between the Agency and HUD dated January 14, 2009, which together with any and all
attachments, exhibits, and appendices thereto is hereinafter referred to as the "Agreement."
This Attachment D is updated and revised per the First Amendment to the SDHC's Agreement
dated April 15, 201Q which added the Uses ofFunds paragraph.
Notwithstanding any other provision of this Agreement the Agency is authorized as follows:
Use ofMTW Funds

The Agency and HUD acknowledge that Section 204(a) of the Omnibus Consolidated
Rescissions and Appropriations Act of 1996 (Pub. L. 104-134) provides that an agency
participating in the MTW demonstration program may combine public housing operating and
capital funds provided under Section 9 of the U.S. Housing Act of 1937 (the "1937 Act") and
voucher program funds provided under Section 8 of the 1937 Act "to provide housing assistance
for low-income families, as defined in section 3(b)(2) of the 1937 Act, and services to facilitate
the transition to work on such terms and conditions as the agency may propose and the Secretary
may approve."
The Agency and HUD further acknowledge that the terms of the agreement under which the
Agency participated in the MTW demonstration program prior to the Amended and Restated
MTW Agreement (the "Original MTW Agreement") did not state that the use of such combined
public housing operating and capital funds and voucher program funds (collectively, "MTW
Funds") was restricted to those uses specified in Sections 8 and 9 of the 1937 Act.
The Agency and HUD hereby agree that they do not intend for the Amended and Restated MTW
Agreement to limit or restrict the authority to use MTW Funds as provided by the Original MTW
Agreement, that notwithstanding any language to the contrary, those provisions in this
Agreement or its attachments that restrict the use of fonds to Sections 8 and 9 are repealed, and
the Agency may use MTW Funds to provide housing assistance for low-income families, as
defined in section 3(b)(2) of the 1937 Act, and services to facilitate the transition to work,
whether or not any such use is authorized by Sections 8 or 9 of the 1937 Act, provided such uses
San Diego Housing Commission
Attachment D

P000050

 12/29/09
are consistent with other requirements of the MT\V statute [i.e., including but not limited to the
requirements to maintain a comparable mix of families and serve substantially the same number
of families as would have been assisted if the Agency were not in the MTW demonstration,
assuring that housing assisted under the demonstration meets housing quality standards
established or approved by the Secretary, that at least 75 percent of the families assisted be very
low income families, that the agency has established a reasonable rent policy that is designed to
encourage employment and self.sufficiency by participating families, that the requirements of
sections 12 of the 193 7 Act are applied to any housing assisted under the demonstration other
than housing assisted solely because of occupancy by families receiving tenant-based assistance,
and that Section 18 of the 193 7 Act shall continue to apply to public housing notwithstanding the
use of any use of the housing under the demonstration] and have been proposed in an Agency's
Annual MTW Plan and approved by HUD.
Notwithstanding the above, such funds remain Federal funds, and are subject to any and all other
Federal requirements outside of the 1937 Act (e.g., including but not limited to Appropriations
Acts, competitive HUD notices of funding availability under which the Agency has received an
award, state and local laws, Federal statutes other than the 1937 Act, and 0MB Circulars and
requirements), as modified from time to time.

A. Authorizations Related to Section 8 Housing Choice Vouchers Only

In addition to the authorizations provided in Attachment C, D. l ., the San Diego Housing
Commission (Agency) is authorized to detennine the inspection protocols and frequencies for
both Agency-owned and non-Agency-owned units. The Agency also is authorized to conduct
inspections and rent reasonableness detenninations for Agency-owned units directly, without
engaging an independent third party. The Agency will utilize the same inspection protocol and
rent reasonableness methodology for both Agency-owned and non-Agency-owned units.
Not withstanding any language in this Agreement or its attachments, the Agency shall follow the
regulations at 24 CFR 941.202, 941.203, and 983 .57.

2
San Diego Housing Commission
Attachment D

P000051

 SECOND AMENDMENT
TO
AMENDED AND RESTA TED MOVING TO WORK AGREEMENT
BETWEEN
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
AND
SAN DIEGO HOUSING COMMISSION

This Second Amendment to the Moving to Work ("MTW") Agreement ("Agreement") is entered
into by and between the United States of America through the U.S. Department of Housing and
Urban Development ("HUD") and the San Diego Housing Commission ("Agency") and is
effective on the date of execution by HUD. Unless otherwise defined, all capitalized terms used
herein shall have the same meanings ascribed to them in the Agreement.
Attachment D is amended as follows:
The following language is added to the San Diego Housing Commission's Attachment D:
Use of Replacement Housing Factor Funds for Development

The Agency and HUD acknowledge that Section B(l )(a) of Attacl1ment C of this Agreement
regarding the ability to combine funds awarded annually pursuant to Section 8(0), 9(d) and 9(e)
of the U.S. Housing Act of 1937 ("1937 Act") into a single, authority-wide funding source
(''MTW Funds") is inclusive of replacement housing factor ("RHF") funds provided for at 24
CFR 905.I0(i) provided the conditions detailed below are met. The Agency may exercise one of
the following options in the administration of RHF funds.

1) Option 1: The Agency may administer its RHF awards outside of its MTW Funds. These
funds must be used in accordance with RHF requirements and may accumulate under an
approved RHF Plan or be subject to the two-year obligation and four year expenditure
deadlines. The Agency would be eligible for second increment RHF funds, which would be
administered outside of the agency's MTW Funds.
2) Option 2: The Agency may combine its first increment RHF funds in its MTW Funds and
use the funds for any purpose allowable in this Agreement and approved in an MTW Plan, as
detailed in Section B(1 )( e) of Attachment C of this Agreement. Obligation and expenditure
requirements of Section 9(j) of the 1937 Act still apply to these funds. If administering first
increment RHF funds in this way, the Agency forgoes eligibility for second increment RHF
funds.
3) Option 3: If the Agency combines its first increment RHF funds in its MTW Funds pursuant
to Option 2, but wants to receive a second increment of RHF funds, while the Agency may
use the funds for any purpose allowable in this Agreement and approved in an MTW Plan,
the Agency must spend a portion of its MTW Funds for construction of new public and/or
affordable housing. The amount of MTW Funds the Agency must spend on construction of
new public and/or affordable units must be equal to or greater than the total amount of RHF
Second Amendment

San Diego Housing Commission
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 funds included in the MTW Funds. In addition, the number of new public and/or affordable
units it constructs must be equal to or greater than the number of public housing units the
Agency would have developed if it had not included its RHF funds in its MTW Funds. This
is referred to as the "Proportionality Test." [For example, if an Agency deposits $500,000 of
RHF funds in its MTW Block Grant, the Agency must spend at least $500,000 of its MTW
Block Grant funds on the construction of new public and/or affordable housing. The specific
number of new public and/or affordable housing units that must be constructed is determined
by dividing $500,000 by the Total Development Cost (TDC) limit applicable to the type of
For example, if the Agency is developing 2-bedroom
new units being developed.
townhomes and the TDC for these types of units is $220,000, the Agency must construct a
minimum of three new 2-bedroom townhomes ($500,000 divided by $220,000 2. 7.) This
calculation must be done for each year that RHF funds are received by the PHA and included
in the MTW Block Grant.]
i)

The applicable TDC will be either the HUD TDC limit for the year in which
construction of the units commences or an alternate TDC approved by HUD as part of
the MTW approval process.

ii)

The new public and/or affordable units required to be developed may be developed
directly by the Agency or developed through a Mixed-Finance transaction.

iii) Any project which includes construction of public housing units must be approved by
HUD following either the Development process (units owned by the Agency) or the
Mixed-Finance process (units owned by an entity other than the Agency).
iv) The Agency must show significant progress on construction of the new public and/or
affordable units required during the first increment of RHF funds in order to receive
the second increment of RHF funds.
v)

If an Agency chooses to include second increment RHF funds in its MTW Block

Grant, then second increment RHF funds will be subject to the Proportionality Test
and the same requirements as first increment funds regarding the amount of MTW
Block Grant funds that must be spent on the construction of new public and/or
affordable housing and the number of units which must be constructed.
vi) Leveraging requirements still apply to the second increment RHF funds.
vii) The 2-year obligation and 4-year expenditure deadlines are still applicable to both the
first and second increment RHF funds deposited into the MTW Block Grant.
viii) The new units constructed must be consistent with the MTW Statute and Agreement.
In order to develop affordable (non-public housing) units, an Agency must have
received prior HUD authority to implement local, non-traditional activities.
ix) Prior to implementing Option 3, an Agency must amend their MTW Agreements to
allow for deposit of RHF Funds in the MTW Block Grant and the receipt of second
increment RHF Funds (a standard HUD Amendment must be used).
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San Diego Housing Commission

2
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 x)

Prior to implementing Option 3, an Agency must include the development of the new
public and/or affordable units in their MTW Plan and include RHF funds in Section 7,
the Sources and Uses Chart.

xi) As long as the Agency has included in its MTW Plan the construction of the new
public and/or affordable units and its intention to combine RHF funds in the MTW
Block Grant and receive second increment RHF funds, the Agency does not need to
submit an RHF Plan to HUD. However, the MTW Plan must include the information
required in an RHF Plan, as prescribed by HUD.
xii) The Agency must include in its annual MTW Report an update on the amount of RHF
funds included in the MTW Block Grant, the amount of funds spent on construction of
new public and/or affordable housing, the number of units being constructed, and the
status of construction. The Agency must show significant progress on construction of
units during the first increment of RHF funds in order to receive second increment
RHF funds.
Notwithstanding the above, such funds remain Federal tunds, and are subject to any and all other
Federal requirements outside of the 1937 Act (e.g., including but not limited to Appropriations
Acts, competitive HUD notices of funding availability under which the Agency has received an
award, state and local laws, Federal statutes other than the 1937 Act, and 0MB Circulars and
requirements), as modified from time to time.
IN WITNESS WHEREOF, the parties have caused this Second Amendment to be executed by
their duly authorized representatives.

By: --·Name: Richard C. Gentr.,
Its:
President and CEO
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Date:

UNITED STATES DEPARTMENT OF HOUSING
ME~
AND U~N DEVE
Bv:
.

✓,
/

~ e : Sandra B.

Its:

ennquez
Assistant Secretary, Publi
Housin

Second Amendment

3

San Diego Housing Commission
P000054

 Exhibit 

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
THE DEPUTY SECRETARY
WASHINGTON, DC 20410-0050

April 14, 2016

Mr. Richard Gentry
Executive Director
San Diego Housing Commission
1122 Broadway, Suite 300
San Diego, CA 92101
Dear Mr. Gentry:
In the 20 years since the authorization of the Moving to Work (MTW) Demonstration
program, a number of flexibilities, which have been successfully designed and tested by you and
other MTW agencies, have been made available to all public housing agencies (PHAs) across the
nation. We are pleased that Congress has now extended the Demonstration through 2028, so that
we may continue this great work together.
Pursuant to Section 239 of Title II, Division L of the Consolidated Appropriations Act,
2016 (P.L. 114-113) (The Act), San Diego Housing Commission's (the Agency) current MTW
Agreement is hereby modified and extended until the end of the Agency's fiscal year 2028.
Further, pursuant to that same act of Congress, and subject to any future acts of Congress, the
Agency's Agreement shall be modified to prohibit any statutory offset of any reserve balances
equal to four months of operating expenses. Reserve balances that exceed four months of
operating expenses shall remain available to the Agency for all permissible purposes under the
Agreement unless subject to statutory offset, notwithstanding any contrary term of the
Agreement.
Your MTW Agreement shall be modified by the content of the second paragraph of this
letter upon receipt of this letter by the Agency. If your Agency would instead prefer to conclude
its MTW participation, please follow the process in Section VIII.D. of the Agency's MTW
Agreement.
Under the Act, other terms of the Agreement may be modified by mutual agreement
between the Agency and HUD. If your Agency would like to discuss modifications to other
terms of its MTW Agreement, please contact the Moving to Work Office at mtw-info@hud.gov.

www.hud.gov

espanol.hud.gov
P000055

 2

Throughout the next 12 years of the M'IW Demonstration, we look forward to learning
from the work of M'IW Agencies, to improve the programs and services provided to low-inco
me
families across the country. We are confident that your locally-driven strategies will continue
to
identify creative solutions to serve the affordable housing needs of our nation's commun
ities.
Sincerely,

Nani A. Coloretti

P000056