Loading...
Res 244-83 12/20/1983RESOLUTION NO. <7f 1/1/`J A RESOLUTION AMENDING THE CITY OF WICHITA FALLS COMMUNITY DEVELOPMENT BLOCK GRANT HOUSING REHABILITATION ASSISTANCE PROGRAM WHEREAS, Community Development Block Grant guidelines have been revised to expand areas of eligibility; and WHEREAS, increased maximum rehabilitation amounts are needed to compensate for the effects of inflation; and WHEREAS, the administrative procedures and policies require revision to increase the understanding of the program and provide for a more efficient processing of applications. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF WICHITA FALLS, TEXAS, THAT: SECTION 1: Resolution No. 2380 adopted August 7, 1979, as amended, is hereby repealed. SECTION 2: The attached document titled, "Housing Rehabilitation Assistance Program Wichita Falls, Texas," is hereby approved. r PASSED AND APPROVED THIS THE day of December, 1983. M : 0 R ATTEST: 2. L'l City Clerk HOUSING REHABILITATION ASSISTANCE PROGRAMS TABLE OF CONTENTS Page No. I. Purpose of the Programs 1 II. Designated Authority/Responsibilities 1 III. Includable Cost for Rehabilitation 1 IV. Eligibility Requirements 1 A. General 1 B. Financial 2 V. CBDG Housing Rehabilitation Assistance Programs 3 A. Rehabilitation Grant Program 3 B. Project SHARE 3 C. Loan Subsidy Program 4 D. Project PAINT Program 4 E. Energy Retrofit Program 5 F. Emergency Repairs 5 VI. Administration 6 A. General 6 B. Receipt of Applications 6 C. Contractor Requirements 7 D. Bidding Procedures 7 E. Contracts 7 F. Security Requirements for Rehabilitation Grants 8 G. Inspection 8 H. Contingency Funds 9 I. Files 9 J. Changes or Waivers 9 i HOUSING REHABILITATION ASSISTANCE PROGRAMS WICHITA FALLS, TEXAS I. PURPOSE OF THE PROGRAMS A. The City of Wichita Falls , Texas , acting by and through its Planning Department , shall provide financial assistance to those applicants of Wichita Falls who meet these eligiblity criteria specified herein. B . The sole purpose of the financial assistance provided shall be to provide decent , safe and sanitary housing for low and moderate income residents by the rehabilitation of existing structures to a condition which brings the structures into compliance with the Standard Housing Code and/or other program requirements as may be approved by the City of Wichita Falls, Texas City Couucil, C . This program shall be operated in accordance with applicable rules and regulations of the City of Wichita Falls , the State of Texas and the Department of Housing and Urban Development. II . DESIGNATED AUTHORITY/RESPONSIBILITIES A. The Planning Department of the City of Wichita Falls, Texas, shall administer the housing rehabilitation assistance program. B. The Director of the Planning Department is the approval officer . C. The Housing Division shall prepare and submit applications for approval on behalf of the applicants . This responsibility shall apply to all housing related programs. III. INCLUDABLE COST FOR CDBG FUNDED REHABILITATION A. CDBG rehabilitation funds shall be used only for those repairs and/or replacements which are necessary to correct actual or incipient violations of the Standard Housing code and/or B . Those repairs and replacements necessary to provide energy efficient qualities specified by the Department of Housing and Urban Development , and/or C . Those improvements designated by programs as may be approved by the City of Wichita Falls City Council . IV. ELIGIBILITY REQUIREMENTS FOR CDBG FINANCIAL ASSISTANCE A. GENERAL 1 . The applicant must be an individual or family who owns and resides in the unit . The applicant will be considered the owner if s/he: a. Is the "owner of record" on the books at the County Court House and has a minimum occupancy in that residential unit of not less than three months . b . Possesses a valid contract for deed which has been or may be filed for record at the Wichita County Court House and which includes reasonable rights of redemption and quiet and peace- able possession of the property, or c . Possesses a life estate which has been, or may be filed for record at the County Court House. 2. To qualify for any CDBG Housing Assistance Program, all county, city and school taxes assessed on a property must have been paid. In the event a delinquency is discovered, the applicant will be notified and afforded a thirty (30) day period to pay delinquent taxes . If the delinquent taxes remain unpaid thirty (30) days from the date of notification, the application will be deemed in- eligible for assistance until such time as all delinquent taxes taxes are paid. 3. The applicant must agree to maintain the rehabilitated dwelling to housing code standards and agree to annual compliance inspec- tions during the period the lien is in force . 4. The applicant will be required to provide proof of homeowners in- surance protection on the unit prior to work proceeding, as re- quired in the Builder's and Mechanic's Lien Contract . Insurance must continue to be carried during the period of time the lien is in force. 5 . The owner occupied structure may be located anywhere in the City of Wichita falls. The following census tracts : 101, 102, 103, 104, 105, 106, 107, 108, 109, 110, 111 , 112, 113, 114, 116, 127, or portion thereof, may be targeted to receive a specific amount of the program funds. 6. Chapter 15 1/2, FLOOD DAMAGE PREVENTION, of the City of Wichita Falls Code of Ordinances shall be complied with for any struc- tures that lie within the Flood Plain. Flood Plain Insurance must be obtained and continue to be carried during the period the lien is in force. 7. To be eligible the structure must be capable of being rehabili- tated up to Housing Code Standards within the amount of funds approved in Section V, part A. B. FINANCIAL. Community Development Block Grant funds are intended to serve the maximum feasible number of low and moderate income resi- dences who have no other means of financing repairs or improvements . Such funds shall not be made available to any homeowner having sub- stantial financial resources and assets available . 1 . In order to qualify for CDBG Housing Rehabilitation Assistance, maximum income limits have been adopted using Department of Hous- ing and Urban Development (HUD) guidelines . Income levels are 2 established and periodically revised by HUD based on median in- come and family size. The most current income levels, based on family size, for the City of Wichita Falls shall be used to de- termine income. If the family exceeds the median income limit they will be considered ineligible. 2. To ensure that funds expended under this program meet the intent of the CDBG guidelines, no more than fifteen percent (15%) of the total Housing Rehabilitation Assistance funds shall be expended for home-owners with income exceeding the lower income ceiling 80%) established for Section 8 of the National Housing Act . V. CDBG HOUSING REHABILITATION ASSISTANCE PROGRAMS When all eligibility requirements have been met, the applicant shall be entitled to receive CDBG housing rehabilitation assistance under one or more of the following programs. A. REHABILITATION GRANT PROGRAM. CDBG Housing Rehabilitation Assistance in the amount necessary to bring the property to minimum standards and City codes may be provided. The total maximum allowable amount shall not exceed $12,500. If the structure can not be made to meet minimum standards within these limits only emergency repairs (see section F) will be made. 1. HANDICAPPED ITEMS: When required, additional funds may be pro- vided for improvements to make the structure or facilities acces- sible for handicapped residents of the residential unit . This amount shall not exceed $1,000 and will not be included in the maximum grant amount . These special costs may include, but shall not be limited to: a. Widening of doorways. b. Construction of ramps. c. Smoothing floors and adjustment of surfaces . d. Raising or lowering cabinets and shelves. e . Installing special equipment such as braces, grabbars and supports in critical areas such as bathrooms and bedrooms. B. PROJECT SHARE - SELF HELP ADJUSTMENT TO REHABILITATION EXPENSES. Project SHARE provides assistance to applicants who are ineligible for a rehabilitation grant because the amount of money required for the necessary rehabilitation exceeds the program limit's . 1 . Rehabilitation Cost Reduction. The total amount of rehabilita- tion cost may be reduced by the value of the labor the applicant is willing to perform to accomplish the rehabilitation of the structure . Labor rates shall be based on the most current Davis-Bacon Wage decision. 3 2. Rehabilitation Grant Conditions. The total maximum allowable amount , including the cost of materials and subcontractor if used, shall not exceed $12,500 and shall be computed using the same criteria as those established in V.A. above. C . LOAN SUBSIDY PROGRAM. CDBG housing rehabilitation funds may be used to subsidize interest rates for rehabilitation loans secured from private investors such as banks , savings and loans, mortgage companies , etc. The subsidy paid from CDBG funds shall be restricted to payments necessary to reduce the interest rate from the current market rate to a more favorable rate to be determined by the private lending institution and the Planning Department of the City of Wichita Falls. 1 . The Planning Department shall assist the applicant to prepare and submit the loan application to the private investor for approval. The private investor shall be given the first position of security by means of a promissory note and mortgage from the applicant to the private investor. 2. The term of the mortgage shall not exceed fifteen (15) years or a maximum amount of $15,000. 3. CDBG funds may be used in conjunction with a subsidized loan; however, CDBG funds shall not exceed the maximum amount specified in Section V or the amount necessary to reduce the applicant 's monthly housing expense after rehabilitation to 30% of the applicant 's gross monthly income, whichever is less . D. PROJECT PAINT PROGRAM. The Planning Department may grant funds for the Community Development Project PAINT for any eligible applicant whose residence is structurally sound and meets minimum code standards but is in need of exterior painting.Elderly or handicapped households will be given priority in this program. Such funds shall be granted for materials and labor needed to make necessary exterior improvements to prevent deterioration of the structure. 1 . The Director of Planning or his designated representative shall review all applications for Project PAINT prior to approving a grant and the decision of the review shall be final. 2. The applicant must meet the eligibility requirements for the CDBG rehabilitation assistance to receive assistance . 3. The security requirements stated in Section VI shall be required to secure approved grants within this program; however, the term of repayment shall be three (3) years unless this program is used in conjunction with any other CDBG Rehabilitation Program. In such event, the term of the repayment will be five (5) years . 4. No applicant shall be eligible to receive more than one grant for Project PAINT. The total grant amount shall not exceed $2,500. 4 E. ENERGY RETROFIT PROGRAM. The Planning Department has the authority to grant funds for energy retrofit to eligible applicants whose resi- dents is structurally sound and meets the minimum code standards but is in need of weatherization improvements. Elderly or handicapped households will be given priority in this program. . Such funds shall be granted to bring the structure into compliance with energy effi- cient guidelines as established by the Department of Housing and Ur- ban Development. Applicants will first be referred to Community Ac- tion Corporation if they meet income guidelines for the weatheriza- tion program. 1 . The Director of Planning or his designated representative shall review all applications for energy retrofit assistance prior to approving a grant and the decision of the review shall be final. 2. The applicant must meet the eligibility requirements for the CDBG rehabilitation assistance to receive energy retrofit assistance. 3. The security requirements stated in Section VI shall be required to secure approved grants within this program; however, the term of repayment shall be three (3) years unless this program is used in conjunction with any other CDBG Rehabilitation Program. In such event, the term of the repayment will be five (5) years. 4. No applicant shall be eligible to receive more than one energy retrofit grant . The total grant amount shall not exceed $1,500. F. EMERGENCY REPAIRS. The emergency repair program is designed to elim- inate a specific hazard to the health, safety or welfare of the home- owner, who is financially unable to make the required repairs. It is not specifically designed to meet housing code standards, but rather to correct situations that endanger the health, safety or welfare of the inhabitants, or situations that if not immediately corrected, could be expected to cause additional damage to the structure, re- sulting in a hazard to the homeowner. 1 . The applicant must meet the eligibility requirements for the CDBG rehabilitation assistance to receive emergency repairs. The Department shall have the authority to waive prior verification of eligibility in cases where an immediate danger to health, safety or sanitation exists . The applicant shall be notified that , in the event the verification of eligibility should reveal the applicant does not fall within the requirements , they shall be required to make full restitution to the Department or a lien will be filed. 2. The security requirements stated in Section VI:G. shall not be required to secure approved grants within this program. 3. An applicant shall be eligible to receive more than one emergency repair; however, in no case shall the amount of all the emergency repairs on any structure exceed $3,000 nor shall any family re- ceive more than this amount on any dwelling unit they may pur- chase in the future . 5 G. HANDICAPPED ITEMS: This program is designed to provide handicapped persons with facili- ties which they are not able to provide for themselves . Eligible ap- plicants must reside in a structure which is not substandard but is in need of items to assist them in mobility. 1 . The Director of Planning or his designated representative shall review all applications for handicapped assistance prior to ap- proving a grant and the decision of the review shall be final. 2. The applicant must meet the eligibility requirements for the CDBG rehabilitation assistance to receive assistance. 3. The security requirements stated in Section VI shall be required to secure approved grants within this program; however, the term of repayment shall be three (3) years unless this program is used in conjuction with any other CDBG Rehabilitation Program. In such event, the term of the repayment will be five (5) years. 4. No applicant shall be eligible to receive more than one handicap- ped grant . The total grant amount shall not exceed 1,500. VI. ADMINISTRATION A. GENERAL. The CDBG Housing Rehabilitation Program is designed as a self-referral program; however, there shall be a continuous outreach effort in such areas as neighborhood meetings and through the local news media. B. RECEIPT OF APPLICATIONS.The Housing Division will accept applications for verification from owner-occupants of the specified area. At the time of initial applications, the Rehabilitation Specialist shall make a determination of initial eligibility followed by a detailed inspection and application report . The information obtained on the application and rehabilitation guidelines shall determine which program the applicant is eligible for. C. Applications will be handled on a first come first serve basis as long as the basic eligibility requirements are met . Those structures with the most urgent need (i.e. defective roof, major heating or plumbing failure) will be given priority. D. CONTRACTOR REQUIREMENTS 1 . Contractors eligible to accept contracts to complete rehabilita- tion projects shall be on file with the City of Wichita Falls Building Inspector as a licensed and bonded contractor for the work to be performed. 2. The contractor shall provide the Planning Department evidence of insurance as required by the City of Wichita Falls and the State of Texas. 6 E. BIDDING PROCEDURES 1. The homeowner shall have the right to select qualified contrac- tors of their choice for competitive bidding. All contractors bidding must meet the requirements in D (above) to be eligible to do rehabilitation. 2. If the homeowner has no preference, two or more contractors will be assigned from the list of approved contractors on file in the Housing Division. 3. The Housing Division shall have the right to group all Energy Retrofit, Painting, or Handicapped projects in one project for the purpose of bidding on each type of grants. 4. If all bids received exceed the amount authorized the work write-up will be reviewed to determine if any items can be deleted or change to reduce the amount. If the cost can be reduced the same contractors will be asked to rebid on the revised write-up. If no items can be changed the unit will be considered for emergency repair only. F . CONTRACTS. This section sets forth requirements and procedures with respect to contracts for rehabilitation financed through a rehabilitation grant, and/or a rehabilitation loan. Rehabilitation work shall be undertaken only through a written contract between the contractor and the recipient of the grant or loan. The Planning Department shall assist each applicant in arranging for and obtaining an acceptable contract. 1 . The rehabilitation contract will consist of a single document signed by the contractor and accepted by the applicant, only following approval of the rehabilitation grant and/or loan. It shall contain a bid and proposal by the contractor, and the general conditions as well as the specifications for the work to be performed. 2. The contractor shall obtain all permits required by the City of Wichita Falls, and shall require the same of his sub-contractors . 3. All work performed by the contractor must be covered by a one (1) year warranty. For a period of one year, the homeowner may require the contractor to correct defects and inadequacies in the work performed under the contract . G. SECURITY REQUIREMENTS FOR REHABILITATION GRANTS. A Builder's and Mechanic 's Lien Note and Contract to the City of 'Wichita 'Falls, Texas, or such Agency as they may designate, shall be required on every CDBG rehabilitation assistance. Said Contract will be properly filed and include the following provisions: 1 . Zero percent (0%) interest rate. 2. No payments shall be due from the property owner as long as the property is the legal residence of the recipient . 7 3. If the property is transferred by sale or the recipient ceases to occupy the property as his legal residence, repayments of the CDBG rehabilitation assistance shall be due and payable imme- diately. Each year, on the anniversary date of the lien, the repayment amount shall be reduced by twenty percent (20%) or one-fifth (1/5) of the total amount of the CDBG rehabilitation assistance until a zero balance is obtained at the end of five 5) years. For example, on a CDBG rehabilition assistance of 7,500, the following repayment schedule would apply: Date of Mortgage Repayment Amount End of Year 1 6,000 End of Year 2 4,500 End of Year 3 3,000 End of Year 4 1,500 End of Year 5 0- 4. A surviving spouse of a joint application or lineal descendants of an applicant who were residents at the time of the application will continue to be afforded the benefit of the terms of the original grant. 5. In the event of the death of a single person family applicant, the legal heir(s) to the property shall repay to the City within fifteen (15) days, unless extended, the amount of the unearned assistance as set out in Section VI, G,3. 6. The City of Wichita Falls or such agency as they may designate will file a Release of Lien upon receipt of payment, or on the anniversary date of the (5th) year of occupancy by the applicant since rehabilitation. H. INSPECTION OF REHABILITATION WORK. This section sets forth the requirements for the inspection of rehabilitation work financed in whole or in part with a rehabilitation grant and/or loan. 1. Responsibility for Making Inspections. The Planning Department shall coorinate inspections of construction work. To accomplish this, the Planning Department shall ensure that : a. Periodic inspections to determine that the contracted work is completed in accordance with the contract . b. Compliance inspection, as necessary, to assure that the contracted work has been completed in accordance with city codes. The contractor will contact the Building Inspection office for required inspections of permitted work. 2. Final Inspection. Upon completion of the rehabilitation work and receipt of the contractor's certification of satisfactory comple- tion of all the work in accordance with the contract , the Con- tractor shall arrange for inspection of the completed work. 8 3. Making Fin ~l Payment . When the final inspection determines that the work has been satisfactorily completed in accordance with the contract , the Planning Department shall obtain from the contrac- tor a Release of Liens and a copy of each warranty due the appli- cant for the work. After receipt of a Release of Liens , including releases from all subcontractors and suppliers and a copy of each warranty, the Department shall make final payment in accordance with rules and regulations . I. CONTINGENCY FUNDS. At the discretion of the Planning Department , ad- ditional funding not to exceed ten percent (10%) of the total allow- able amouot may be utilized as a contingency fund to pay for condi- tions which were not detected and included in the original contract . J. FILES. The Planning Department shall maintain accurate files and re- cords on each applicant and all documentation pertinent to the case shall be included. Personal data on individuals will be considered confidential information under the Privacy Act and will be released only to authorized governmental agencies and other applicable person- nel. K. CHANGES OR WAIVERS, The City Council shall have the right to waive, change, or modify all or any part of this plan provided such changes do not conflict with U. S. Department of Housing and Urban Develop- ment regulations and guidelines. 9