| HUD No. 00-24 | |
| Further Information: | For Release |
| In the Washington, DC area: 202/708-0685 | Tuesday |
| Or contact your local HUD office | February 8, 2000 |
CUOMO ANNOUNCES $17.8 MILLION IN CONTRACTS TO PUBLIC HOUSING AGENCIES IN MASSACHUSETTS, MICHIGAN AND SOUTH DAKOTA
WASHINGTON - Housing and Urban Development Secretary Andrew Cuomo today announced the award of $17.8 million in contracts to public housing agencies in Massachusetts, Michigan and South Dakota to help ensure that low-income families live in well-maintained and well-managed apartments.
"HUD will work in partnership with housing agencies to ensure that landlords receiving HUD rental assistance subsidies meet their obligation to provide decent, safe and sanitary housing to families in need," Cuomo said.
The contracts were awarded to:
Massachusetts Housing Finance Agency: $9,678,000
Michigan State Housing Development Authority: $7,702,500
South Dakota Housing Authority: $502,500
The housing agencies will work on HUD's behalf as contract administrators with landlords that provide HUD-subsidized apartments in privately-owned buildings under the Section 8 program. The housing agencies will perform various duties for HUD including management and occupancy reviews, contract terminations, renewals and expirations, and physical inspections of apartment projects.
Here are details on each of the three housing finance agencies:
The Massachusetts Housing Finance Agency (MHFA) With this contract the MHFA will administer subsidy payments for over 30,000 families. The MHFA is currently HUD's Contract Administrator for 181 Section 8 insured and non-insured developments within Massachusetts. These Section 8 properties provide housing for more than 20,000 low-income families who receive the benefit of $170 million in annual subsidies. The Agency functions as the state's affordable housing bank. Since making its first loan in 1970, MHFA's multifamily portfolio has steadily grown in real estate assets, providing housing for more than 55,000 families.
The Michigan State Housing Development Authority (MSHDA) is the largest contract administrator for Section 8 properties in the State of Michigan. With this contract, the MSHDA will administer subsidy payments for over 35,900 families. The Authority currently serves as contract administrator for 139 properties totaling more than 19,000 units with more than $116 million in annual contract authority. In addition, MSHDA is also contract administrator for more than 13,000 Section 8 Existing Program Certificates currently totaling $57 million in annual contract authority. MSHDA's is also the largest public provider and administrator of low- and moderate-income housing in Michigan. MSDHA's Rental Production Program has been in existence since the inception of the agency and has produced overall 51,000 units with mortgage loans totaling $3 billion for occupancy by low- and moderate-income residents.
The South Dakota Housing Development Authority (SDHDA) has been performing contract administration for more than 22 years. With this contract, the SDHDA will administer subsidy payments for more than 2,600 families. In 1975, the South Dakota Housing Development Agency sold multifamily bonds to create rental units which were subsidized by an allocation of funds from the Section 8 Housing Assistance Payments Program. This ultimately generated $71 million in loans, creating 77 developments with 2,316 units for low income citizens throughout South Dakota between 1976 and 1983. The authority currently serves as contract administrator for 125 properties totaling 3,174 units, with more than $13 million in annual contract authority.
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