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HomeMy Public PortalAboutA 2007-10-03 CDBGRECE11VED CITY OF LYNWOOD CITY CLERKS OFFICE SEP 2 7 2007 d AN _ _.. PHI X, '7j8s9il0�ili�i1i�a9f4(5t�� AGENDAS COMMUNITY DEVELOPMENT BLOCK a GRANT ADVISORY BOARD COMMISSION WEDNESDAY, OCTOBER 3, 2007 6:00 P.M. LYNWOOD CITY HALL COUNCIL CHAMBERS 11330 BULLIS ROAD, LYNWOOD, CA 90262 SYLVIA ORTIZ, CHAIRPERSON MARTHA SALDANA, VICE CHAIRPERSON PATRICIA CARR, JOE BATTLE, COMMISSIONER OPENING CEREMONIES: A. CALL TO ORDER B. FLAG SALUTE C. ROLL CALL D CERTIFICATION OF AGENDA POSTING E. PUBLIC ORALS: (ITEMS ON AGENDA ONLY) F NEW BUSINESS: Presentation on the City of Lynwood HOME Program By Ernie Nishii, Housing Manager G. STAFF ORALS H. BOARD ORALS I: ADJOURNMENT :7: MINUTES OF A PUBLIC HEARING HOSTED BY THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ADVISORY BOARD COMMISSION SEPTEMBER 5, 2007 6:00 P.M. A. CALL TO ORDER: . The meeting was called to order at 6:10 p.m. on the above captioned date by Chairperson Ortiz: B. FLAG SALUTE: All present participated in the flag salute. C. ROLL CALL: Chairperson Ortiz requested roll call. Staff replied as follows: PRESENT: Commissioner Saldana Commissioner Carr Commissioner Battle STAFF: Annette Potts, Deputy Director of Administrative Services D. CERTIFICATION OF AGENDA POSTING: Staff informed the Commission that the Agenda was posted per the Brown Act. F. NEW BUSINESS. Public Hearing — FY2006 -07 Consolidated Annual Performance And Evaluation Report (CAPER The Public Hearing was opened by Chairperson Ortiz. The public was asked to give comments on the CAPER. There being no comments, the CDBG Commission began their review and discussion of the City's fiscal year 2006 -07 CAPER. The CAPER identified the level of progress and accomplishments by CDBG and HOME funded activities. During the review of the report, the Commission expressed their concern regarding the HOME program and accomplishments. Commissioner Battle asked if staff could provide the Housing Program's proposed accomplishments for the upcoming year Commissioner Carr stated that she heard of housing applications being lost and applicants having to submit applications more than once. The Commission requested that Housing staff be invited to the next CDBG Commission meeting to gave a presentation on the HOME program to include, current income limits, the number of people in application stage and year to date progress and /or accomplishments and the application process. Staff informed the Commission that two activities did not receive their allocations due to lack of meeting the eligibility criteria. After further review and discussion, the Commission unanimously approved the CAPER of fiscal year 2006 -07 for submittal to HUD. G. BOARD ORALS The Commission gave condolences for former CDBG Commissioner William Araujo. Commissioner Baffle spoke on what a beautiful family the Araujos' are and that he had known the Araujos' for many years. Commissioners Ortiz and Carr expressed their sorrow for the family and Margaret Araujo especially, who was very close to her husband. H. ADJOURNMENT Chairperson Ortiz requested a moment of silence for William Araujo and the Araujo family The CDBG Commission meeting adjourned at 6:36 p.m., in honor of William Araujo, former CDBG Commissioner Sylvia Ortiz, Chairperson Date Annette Potts, Lynwood Staff Date DATE. October 3, 2007 TO Honorable Chairperson and CDBG Advisory Board Members FROM: H. Ernie Nishii, Housing Manager Leaonna Fletcher, Sr Rehabilitation Specialist SUBJECT HOUSING REHABILITATION PROGRAM STATUS REPORT, HOME REPORT The following information is being presented as requested by the CDBG Commission regarding the City's HOME Program Housing Rehabilitation Program. For fiscal year 2007 -2008, the Housing Division seeks to complete the rehabilitation of at least 19 cases. For fiscal year 2008 -2009 the Division will complete an additional 15 cases. The two year plan is to complete at least 34 cases by the end of the fiscal year ending 2008 -2009 The following is a status of the Program Housing Rehabilitation Program • 5 projects are under construction. (4 deferred loans.@ $65,000 each and 5 grants @ $10,000. Total cost of projects under construction is $310,000.) • 4 projects are ready for construction contracts and will commence construction. (2 deferred loans @ $65,000 each, and 4 grants @ $10,000. Total estimated cost of projects nearing construction phase is $170,000 ) • 14 projects are out to bid. (14 deferred loans @ $50,000 each, 14 grants @ $10,000 Total estimated cost of projects at bid phase is $840,000 ) • 6 projects have been approved and are scheduled for property inspections. (6 loans @ $50,000 each, and 6 grants @ $10,000 Total estimated cost of projects at inspection phase is $360,000.) • 5 applicants have been contacted for additional information and have not yet been approved to participate in the City's program. • There are no applicants on the waiting list. THE CITY OF LYNWOOD S HOUSING REHABILITATION PROGRAM GUIDELINES AND PROCEDURES Introduction 0 la General The Housing Rehabilitation Program has been adopted by the City Council of the City of Lynwood to meet the City's Community Development .goals of providing its residents with decent, safe and sanitary housing and a suitable living environment as outlined in the City's approved 5 -Year Consolidated Plan. The Housing Rehabilitation Program provides technical and financial assistance to qualifying owners of residential properties in designated target areas in the City of Lynwood The primary funding of the Program is through the Home Investment Partnership Program (HOME Program), a federal program under which the City is allocated funds directly from the United States Department of Housing and Urban Development (HUD) for affordable housing purposes. The primary purpose of the HOME Program is to expand the supply of decent, safe and sanitary and affordable housing. Since November 1975, the Housing Rehabilitation Program has provided assistance to numerous property owners. Description -of- Assistance 1 Technical Assistance Program staff provides assistance to qualify applicants in: • loan counseling • code compliance • property rehabilitation • preparation of cost estimates • preparing of bids and contracts • selection of contractors • construction monitoring I 1 2. Financial Assistance The Rehabilitation Program offers qualifying property owners financial assistance in the form of Grants and Deferred Payment Loans (DPL). At the City Council's direction, program components may be added, revised and/ or deleted, depending on particular requirements. C. Program Regulations This manual sets forth the policies and procedures under which the City of Lynwood's Housing Rehabilitation Program will operate. The policies and procedures contained herein can only be revised, amended and or deleted by the City Council of the City of Lynwood This manual becomes effective immediately upon approval by the City Council of the City of Lynwood. 2 II. GLOSSARY OF HOME TERMS The following terms and definitions shall apply to this Manual: "Adjusted Income ". Adjusted income is annual (gross) income reduced by deductions for dependents, elderly households, medical expenses, handicap assistance expenses and childcare (these are the same adjustment factors used by the Section 8 Program). Adjusted income is used in HOME to compute the actual tenant payment in Tenant Based Rental Assistance (TBRA) programs and the low HOME rent in rental projects in which rents are based on 30% of a #amity's adjusted gross income. "Annual Income The HOME Program allows the use of one of three definitions of annual income: Section 8 annual income; annual income as reported on the U S Census long form, and adjusted gross income as defined for reporting or IRS Form 1040 series shall include, but not be limited to: • Gross Income: means the anticipating income of a person or family for the twelve -month period following the date of determination of income. (1) The gross amount, before any payroll deduction, of wages and salaries, overtime pay, commissions, fees, tips and bonuses. (2) The net income from operation of a business or profession or from rental or real or personal property (for this purpose, expenditures for business expansion or amortization of capital indebtedness shall not be deducted to determine the net income for a business); (3) Interest and dividend income from estates or trust; (4) The full amount of periodic payments received from social security, annuities, insurance policies, retirement funds, pensions, disabilities or death benefits and other similar types of periodic receipts; (5) Payments in lieu of earnings, such as unemployment and disability compensation, worker's compensation and severance pay (b) The following items shall not be considered as income. (1) Casual, sporadic or irregular gifts; (2) Amounts which are specifically for or in reimbursement of the cost of medical expenses; (3) Lump sum additions to family assets such as inheritances,. , - insurance payments (including payments under health and accident 3 insurance and worker's compensation), capital gains and settlement for personal or property losses; (4) Amounts of educational scholarships paid directly to the student or to the educational institution, and amounts paid by the government to a veteran for use in meeting the costs of tuition, fees, books, and equipment. Any amounts of such scholarships, or payments to veterans not used for the above purposes of which are available for subsistence are to be included in income, (5) The special pay to a serviceman head of household that is away from home and exposed to hostile fire, (6) Relocation payments made pursuant to federal, state, or local relocation law; (7) Foster child care payments; (£i) The value of coupon allotments for the purchase of food pursuant to the Food Stamp Act of 1964 which is in excess of the amount actually charged the eligible household; (9) Payments received pursuant to participation in volunteer programs. "Assisted Unit' means those units which directly benefit from funds from the Housing Rehabilitation Program. "Borrower" means a property owner receiving rehabilitation loans from the Program pursuant to provisions of this Manual. "Department" means the City of Lynwood's Redevelopment Department. "Director" means the Director of the Redevelopment. "HOME Funds ": All appropriations for the HOME Program, plus all repayments and interest or other returns on the investment of these funds. "Household one or more persons who are very low or low income household owner occupants. "Housing Cost" of a person or family rehabilitating a housing unit shall include all the following monthly costs associated with that housing unit: (a) Principal and interest on a mortgage loan including any rehabilitation loans or any loan issuance fees associated therewith 2 (b) Property taxes and assessment. (c) Fire and casualty insurance covering replacement value of property improvements. (d) Property maintenance and repairs. (e) A reasonable allowance for utilities are including garbage collection, sewer, water, electricity, gas and other heating, cooling, and refrigerating fuels. Utilities do not include telephone service. Such an allowance shall take into consideration the cost of an adequate level of service. (f) Homeowner association fees. (g) Space rent, if the housing unit is situated on rented land. "HUD" means the Federal Department of Housing and Urban Development. "Low Income Household means persons and families whose gross incomes do not exceed 80% percent of the area median income, adjusted for family size and other adjustment factors by the United States Department of Housing and Urban Development (HUD) and are subject to change. HUD issues periodic updates of income guidelines (see Appendix for most recent update). "Minor" means a member of the family household (excluding foster children) other than the family head of the household who is under 18 years of age or is a full time student and lives at home. "Owner" means any individual that owns a residential property in fee simple interest pursuant to the units as a principal residence. "Owner - Occupant" means an owner of a one to four unit residential properties who uses one of the units as a principal residence. "Rehabilitation" means repairs and improvements to a substandard structure necessary to make it meet local codes and rehabilitation standards. 'Rehabilitation Contract' or "Contract"- means a duly executed agreement between the property owners and the selected contractors setting forth the scope of work to be performed by the latter, containing the consideration and method of payment and any other terms and conditions necessary to accomplish the stipulated property rehabilitation work. 5 "Rehabilitation Program" means an ongoing program involving construction assistance, financial assistance or technical assistance, in the rehabilitation of residential and commercial property "Rehabilitation Standards means applicable State or local Building or Housing Standards adopted by the City of Lynwood pursuant to the State Housing Law, Part 1.5 (commencing with section 17910) of Division 13 of the Health and Safety Code and specifically Section 17959.8 rehabilitation standards including room additions necessary to alleviate overcrowding for eligible households. "Room Additions` means bedrooms or bathrooms which are added to a structure to alleviate documented overcrowding. "Substandard Structure ": means any residential building or any portion of a residential building including, but not limited to, any dwelling unit, guest room, or suite of room, or the premises on which the same is located, in which there exists any of the conditions listed in the Uniform Housing Code, latest edition, to the extent that the conditions endanger the life, limb, health, property, safety or welfare of its residents. "Transfer of Property means to sell, convey, or alienate title, voluntarily or otherwise, to the property, except in the case of the transfer of the property to an owner - occupant's spouse as a consequence of death or dissolution of marriage r. 0 . III. TYPE OF FINANCIAL ASSISTANCE - TERMS, CONDITIONS AND RESTRICTIONS A. Grants A grant in the amount of $10,000 is available to very -low and low income owner- occupants. 1 Preliminary Determination of Eligibility Rehabilitation staff makes a determination that applicant is income eligible. Staff will also make a determination that improvements are necessary to the health and safety of the applicant. B. Deferred Payment Loan The Deferred Payment Loan (DPL) is a zero percent 0% interest rate loan. The maximum DPL amount shall be $65,000 per applicant. The loan becomes due and payable upon sale or transfer of the property by any means. DPL funds are loaned directly by the City to eligible property owners. All DPL's shall be secured with a recorded Deed of Trust and may be subordinated to prior loans and liens. The City's assistance will not be secured if the City's in third position. The Borrower may repay the full amount at any time with no prepayment penalty 1 Preliminary Determination of Eligibility Rehabilitation staff makes a determination that an applicant is eligible and is able to maintain a loan repayment plan. Staff will also make a determination that improvements are necessary to the health and safety of the applicant. 2 Approval Authority DPL will be approved or disapproved by the Program staff The City will notify applicant of results. An applicant whose application fora DPL has been denied may appeal to the City Council for a final decision. Program participants can only apply for assistance once per property 3 Subordination The City will only subordinate if the applicant is requesting to refinance and receive a lower interest rate or provide evidence of financial hardship If an applicant's intent is to get cash out, the loan is due and payable Additionally, after proper consideration of the reas6ns 7 described above, only those requests which provide evidence of sufficient equity may be granted the subordination a. Information on Applicants Program staff shall prepare a summary sheet stating applicants name and address, income, amount of DPL, reason for request and other information needed to establish the propriety of the request. Applicant must demonstrate both, the need for the subordination and his /her inability to pay back the City's Loan. b Protection of the Public Investment Protection of the Public investment shall be of paramount importance to Program staff when evaluating requests for subordination. In those cases in which the applicant's ability to pay back the City's loan has been established, Program staff shall recommend the rejection of the request for subordination. Program staff shall strive to impress upon the applicant(s) both, (1) the impropriety of obtaining windfall profits from public funds, and (2) the need to recapture the public investment for recycling into the property rehabilitation loan pool so as to maximize the benefits of these funds to the community C. Request for an Assumption of Deferred Payment Loans (DPL) Only those persons, who meet the Rehabilitation Program guidelines pursuant to the provisions above, shall be granted the request. N 9 IV. ELIGIBILTY- REQUIREMENTS This section sets forth eligibility requirements as to the property and the applicant to obtain a Grant or a Deferred Payment Loan (DPL). A. Property Eligibility Requirements Rehabilitation grants and loans will be made to eligible properties located within the City of Lynwood That is, property must need rehabilitation in order to comply with the Property Rehabilitation Standards adopted by the City Council (Appendix A.) All HOME assisted properties must meet all local Building and Municipal Codes after rehabilitation. The City will be' unable to provide any federal assistance to any applicant who does not comply with the Rehabilitation guidelines. B. General Applicant Eligibility Requirements To be eligible for a Grant or DPL, the applicant must be income eligible. The applicant must show proof of owner occupancy For a loan the applicant must demonstrate adequate ability to repay the loan and be income eligible. The applicant must show proof of owner occupancy A rehabilitation loan will not be approved by the Rehabilitation staff, if the applicant's record indicates disrespect for former obligations, or there is an indication of an inability to make the payments that will be required. 9 V. ELIGIBLE IMPROVEMENTS AND COST This section sets forth, but does not limit the eligible and mandatory improvements under the Housing Rehabilitation Program as well as ineligible improvements. A. Mandatory Improvements Hazardous conditions which are a direct threat to the health, safety and general welfare of occupants. B. Eligible Improvements and Cost 1 Additions and alterations to relieve overcrowding and /or increase the livability or usefulness of existing structures, such as rooms, porches, stairways, closets, bathrooms, and entrances 2. Exterior work to help preserve or protect structures such as painting, roofing and siding. 3. Interior work to make a structure more livable, such as painting, plastering, new flooring and tile work. 4 Repairs, restoration or replacement of important parts of structures such as heating systems, plumbing repairs, and built -in kitchen appliances in residential structures. 5. Demolition, clearance and site preparation where a unit is determined not suitable for rehabilitation. 6 Costs for improvements related to making the housing unit (s) accessible to and usable by the handicapped 7 The cost of design services for the preparation of plans, drawings, and specifications for the rehabilitation of the property 8. The cost of building permits and related fees required for the rehabilitation, if not included in the construction contract. 9 Costs of title reports, credit reports, appraisal reports and fees for recording documents related to the financing. 10 10 The cost of repair and installation of alternative energy conversation systems and weatherization when done in conjunction with other rehabilitation work. C. Improvements and Costs The following improvements are not eligible. barbeque pits, burglar alarms, fire extinguishers, greenhouses, kitchens appliances which are designed and manufactured to be free standing and are not built -in and permanently affixed as an integral part of the kitchen, outdoor fireplace or hearths, swimming pools, television antennae, tennis courts, waterproofing a structure by pumping or interjecting any substance in the earth adjacent to or beneath the basement, foundation, floors, or any other improvements not customarily found in the surrounding dwellings. D. Grants and loans made by the City prohibit the following unauthorized expenses: Real property acquisitions. New construction, except for room additions. • Materials, fixtures or equipment of a type of quality which exceeds that customarily is used in for properties of the same general type as a property to be rehabilitated. Appliances not required by rehabilitation standards. • The purchase, installation, or repair of furnishing or trade fixtures. l 11 VI. PROGRAM PROCEDURES This section sets forth the steps which are to be followed in the processing of rehabilitation activities. 1. Initial- Contact Marketing effort/ strategy includes but is not limited to flyers, phone communication, and door to door contacts by Rehabilitation staff A preliminary application will be delivered to the applicant. Upon return of the application staff will establish preliminary eligibility of the Program. If applicant is found eligible, an appointment will be schedule with the property owner for an inspection by the Rehabilitation Staff 2. Applicant Processing • Verifying Program eligibility of the applicant. • Verify the applicant is owner of property to be improved • Verification of applicant's income and employment. In the event that the applicant is self - employed, the income tax returris for the previous two years will be obtained. • Complete credit investigation. • Advise owner in writing of approval or disapproval. 3. Property Inspection At the preliminary inspection, items will be identified and a work write -up and cost estimate will be prepared. The Rehabilitation Staff shall identify code violations observed. Participants in the Housing Rehabilitation Program shall provide consent to the City, its agents or employees to enter upon and inspect the lands, buildings and equipment of the applicant at any time before, during or after rehabilitation of their property 4. Termite Inspection A termite inspection may be required by the City The property owner will submit the inspection to the Rehabilitation Staff for inclusion in the work write -up and cost estimates. 12 r 5. Lead Base Paint Inspection Depending on the type of improvements a lead inspection may be performed to determine the amount of the contamination. The contaminated area will be abated and the repairs will be added to the work write up 6. Work - Write -Up /Cost Estimate A Work Write -Up /Cost Estimate will be compiled based on the initial inspection and results of the termite inspection report. The Homeowner will be given a copy of the work write -up The work write -up may include the necessary architectural drawings and pertinent specifications. 7. Bid Process Bid packages will be prepared and provided to the Homeowner The Homeowner will obtain bids from qualified contractors. "Qualified means those contractors who are licensed by the State of California, who have applied td participate in the City's Rehabilitation Program and who have received written approval of their participation in the Program. However, if applicant desires to obtain bids from contractor(s) not on the City's list, applicant must submit names, license number(s) and address(es) of contractor(s) to the Rehabilitation program staff Program staff shall obtain contractor(s) qualifications. The selected bid must be returned by the homeowner as soon as possible. No contractor shall be awarded a contract if said' contractor has more than four (4) incomplete rehabilitation jobs. Prior to the award of the contract, Program staff shall verify with HUD that contractor is not on the list of debarred contractors. 8. Contract Execution As a requirement for funding, a contract agreement must be executed. The contract shall contain (1) the Bid and Proposal by the contractor, and (2) the General Conditions and the Building Specifications for the work to be ,performed The Rehabilitation staff will prepare the necessary documents. 9. Pre - construction Meeting The Rehabilitation staff will conduct a pre- construction meeting with the homeowner and contractor to execute all documents. 13 10. Notice to Proceed Property owners will be assisted by staff in issuing a Notice to Proceed for the construction work. 11. Disbursement The City will release funds in the form prescribed by the institution or agency Disbursement will be made only after completion of inspection and verification of billing and lien releases by Rehabilitation Staff Proceeds will be disbursed as follows. • Contractors may not receive more than three progress payments. The progress payments shall not exceed 90% of the cost of such work items determined by the bid breakdown. Progress payments due contractor shall be paid after City approval of receipt and verification of contractor's invoice(s) and satisfactory Release of Liens, or claims for Liens, by contractor, subcontractor, laborers and material supplies for work completed and materials installed. • Ten percent (10 %) retention will be disbursed to contractor at expiration of lien filing period, or thirty -five (35) days after filing of the Notice of Completion. This retention may increase or decrease • Payments may be made in one lump sum at time of completion. Completion consists of passing final inspection and filing required release forms. 14 VII. CONTRACTOR REQUIREMENTS This chapter sets forth the provisions governing participation by contractors in the Housing Rehabilitation Program. CONTRACTORS ELIGIBILITY Contractors wishing to participate in the Housing Rehabilitation Program shall be required to A. License Be properly licensed in accordance with provisions of Chapter 9 of the State of California Business and Professions Code, as amended. B Workers Compensation Insurance Carry Workers Compensation Insurance in accordance with the provisions of the California Labor code, with adequate protection from claims under the Workers Compensation Act which may arise from operations under the Contract; C Manufacturers and Public Liability Insurance Carry Manufacturers' and Contractors' Public Liability Insurance with limits to protect the Owner(s), Contractor; and his subcontractors against claims for injury to or death of one, or more than one person, because of accidents which may occur or results from operation under the Contract; such insurance shall cover the use of all equipment, including but not limited to excavating machinery, trenching machines, cranes, hoists, rollers, concrete mixers, and motor vehicles, in the construction of the work embraced. D. Property Damage and Liability Insurance Carry, during the life of the Contract, Property Damage and Liability Insurance in an amount to protect him and his subcontractors from claims for property damage which might arise from operation under this Contract. E. Personnel Employment Record Have and maintain a good record in personnel employment practices. The Rehabilitation staff will review and document in its project files that any contractor awarded a contract is NOT included on the GSA's, List of Parties Excluded from Federal Procurement and Non-Proc'u'rement 15 Programs. Contractors debarred by HUD are not eligible for participating in the Program. F Performance Record Have and maintain a good business and work performance record Program staff shall verify and if evidence of improper and/ or poor business conduct and work performance is established, the Program may deny Contractor participation in the Program or may require contractor to submit evidence of bonding as required by the Program prior to execution of any Contract. G. List of Approved Contractors The Housing Rehabilitation Program shall maintain a List of Approved Contractors for the purpose of assisting property owners to obtain bids for the proposed rehabilitation work. The program does not recommend or endorse any of the Contractors on said list. The owner(s) is not required to select any of the Contractors on the list. However, any Contractor selected by the Owner must comply with the provisions listed above. Any Contractor(s) may be removed from the list when there is documented evidence of non compliance with the provisions of the Program, and/ or evidence of unprofessional conduct in the performance of his /her duties. 16 VIII. OTHER FEDERAL REGULATIONS This chapter sets forth the provisions governing program compliance with other Federal regulations. These provisions shall be adhered to and /or incorporated in all documents used in the provision of any property rehabilitation assistance. A. EQUAL OPPORTUNITY PROVISIONS During the performance of the Program, the City, the Program Participants and the selected contractor(s) agree as follows: 1 The Contractor shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The Contractor shall take affirmative action to ensure that applicants for employment are employed, and that the employees are treated during employment, without regard to their race, color, religion, sex, or national origin. Such actions shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruiting or recruitment advertising, lay off termination; rate of pay or other forms of compensation, and section for training, including apprenticeship B. CIVIL RIGHTS ACT 1964 Under Title VI of the Civil Rights Act of 1964, no person shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance. C TEMPORARY RELOCATION - ASSISTANCE This section sets forth a description of temporary relocation benefits that may be available to persons and families who are temporarily displaced from their homes as a result of the City's Rehabilitation Program. a. Conditions - Requiring Temporary Relocation If any of the following causes or conditions occur as a result of the Housing Rehabilitation Program, it may be necessary for the persons or families to relocate to another dwelling on a temporary basis: • Water system is shut off for any extended period of days for plumbing repairs. 17 • Electricity service becomes non - operable when make repairs to wiring. • Repairs will create dust and other conditions which would aggravate allergic conditions of occupant(s). • Structures are to be fumigated for termite control and infestation. • Hazardous living conditions would result from structural changes during construction. • Sanitation facilities, e.g., tub, wash basin, toilet are to be removed and /or become non - operable. • Contractor required relocation of people to perform repairs on time at agreed upon price. D ELIGIBILITY REQUIREMENTS Persons or families of very low and low income who have occupied the property for more than ninety (90) days and who must find temporary commercial accommodations, are eligible for relocation benefits. Persons or families must actually secure and occupy alternative dwelling unit in order to receive payment. E. AMOUNT OF ASSISTANCE Benefits will be made available for a period determined by the Director but not to exceed the contract term. City will pay the cost of the temporary commercial accommodations. The daily maximum amount shall be based on the lowest reasonable rate(s) obtained from at least three (3) different bona fide commercial lodging establishments. It shall be the applicant's responsibility to obtain quotations (bids) from above mentioned establishments and submit said quotation to the Program office. Depending upon the number of persons permitted to ,occupy one room, the schedule may be adjusted to reflect actual cost. F PROCEDURES FOR SECURING RELOCATION BENEFITS Contractor must submit letter to Rehabilitation staff yequesting the vacating of unit and specifying amount of time that unit must remain vacant. Request for vacating of the premises must be approved in writing by Rehabilitation staff and authorized by the Director or his /her de §ignee. IF Rehabilitation staff will present claim form to Finance Department with a request for advance payment. Advance payment will be made payable, jointly, to displaced person and to commercial accommodation. Advance payment will be delivered by Rehabilitation staff G. SECTION 3 COMPLIANCE The work to be performed on a project assisted with funds from the Department of Housing and Urban Development is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, which requires that, to the greatest extent feasible, opportunities for training and employment be given lower income residents of the City and contractors for work in connection with the project be awarded to business concerns which are located in, or owned in substantial part by persons residing in the area. H. LEAD -BASED PAINT Housing assisted with HOME funds is subject to the Lead -Based Paint Poisoning Prevention Act (42 U S C 4821 et sea .) and 24 CFR Part 35 The Rehabilitation staff shall conduct an inspection of defective paint surfaces in all units constructed prior to 1978 which are occupied by families with children under seven years of age. I. ENVIRONMENTAL REVIEW The environmental effects of the rehabilitation must be assessed in accordance with the provisions of the National Environmental Policy Act of 1969 as follows: • National Flood Insurance Program (S 570 609) The provisions of the Flood Disaster Protection Act of 1973 and the regulations there under apply Under that Act no agency shall approve any financial assistance for construction in an area having special flood hazards unless the applicant participates in the National Flood Insurance Program. • Compliance with Air and Water Acts. The selected contractor and all subcontractors shall comply with the requirements of the Clean Air Act, as amended 4 USC 1857 et seq., the Federal Water Pollution Control Act, as amended, and the regulations of the Environmental Protection Agency as amended. IC • Historic Preservation Historic properties and districts are subject by law to special protection and historic preservation processing, which must be performed to comply with the regulations of the Advisory Council on Historic Preservation (36 CFR Part 800). The goal of this regulatory process is to avoid, minimize, or mitigate adverse effects on historic properties. J. HATCH ACT Neither the HOME Program nor the funds provided therefore, nor the personnel employed in the administration of the Program shall be in any way engaged in the conduct of political activities in contravention of Chapter 15 of Title 5, United States Code. K. TRUTH -IN- LENDING REQUIREMENTS 1 General This section describes the Truth In Lending Act and its procedural and disclosure requirements which must be followed in the settlement with a Deferred Payment Rehabilitation Loans. Title 1 of the Consumer Credit Protection Act was enacted by Congress on May 29, 1968 and became effective on July 1, 1969 The Act requires that borrowers in "consumer credit transaction" be vested with certain rights and protections in connection with the transaction and receive specified written information from the lender The disclosures must be made before credit is extended and before the borrower becomes obligated in connection with the transaction. Among the required disclosures are: (a) The amount of credit a borrower will have for actual use (the amount financed); and (b) The finance charge (consisting primarily of interest but also other fees and charges) expressed both as a dollar amount and as an Annual Percentage Rate. In addition, the act enables a Borrower, within three (3) days following the loan transaction, to rescind the transaction, if the loan is secured by a lien on the borrower's residence. The Truth In Lending Disclosure Statement is to be used at loan closing to meet the requirements of the Truth -In- Lending Act. 9E A statement shall be given to all borrowers of Rehabilitation loans except those borrowers which are corporations, partnerships, or otherwise organized as an independent entity or business firm under local law The Disclosure Statement shall be given to the borrower at loan closing but prior to the time he /she executes the promissory note obligation for repayment of the loan. When the Disclosure Statement is given to the Borrower, he /she shall be requested to sign and date a completed Disclosure Statement in the presence of authorized representative of the City of Lynwood and /or Program staff who shall also sign as witness. The signed and witnessed copy of the Disclosure Statement shall be retained by the Rehabilitation Division in the loan application file L. ACCESS TO PROPERTY - RECORDS MAINTENANCE Borrower agrees to grant the City of Lynwood and the United States Government or their designee permission, to enter and inspect property and to inspect records of Applicant relating to the rehabilitation assistance received from the City of Lynwood. City agrees to retain copies of all records related to the use of Rehabilitation Program funds for a period of seven (7) years from the effective date of the execution of the Rehabilitation Agreement 'between the Applicant and the City of Lynwood, and to forward copies of originals, as requested. M. COST EFFECTIVE - ENERGY - CONSERVATION - STANDARDS Cost - effective energy conservation- improvement shall be required as applicable N. PROPERTY REHABILITATION STANDARDS All the residential rehabilitation work shall comply with the adopted Property Rehabilitation Standards (See Appendix A). Any new construction work performed under the Housing Rehabilitation Program shall comply with the City's Building and Safejy Codes and Zoning Ordinances. All illegal and /or substandard 'improvements shall be required to be brought up into compliance with appropriate codes and /or ordinance as determined by the Rehabilitation Specialist. 21 0 CONFLICT WITH PUBLIC INTEREST The property for which rehabilitation assistance is requested may not be situated in a location where it will be in conflict with either existing or proposed redevelopment projects involving the construction or development of public schools, parks, streets, utilities and other public facilities except that, when determined by the Director, a health and /or safety hazard exists which endangers the public health and welfare. P REQUEST FOR ARBITRATION The Program staff may serve as Arbitrator between the Rehabilitation Program's participating property owners and contractors. 0. REQUEST FOR INTERPRETATION OF REGULATIONS The Program Staff shall serve as Interpreter of the Adopted Housing ,Rehabilitation Program Regulations when Program participants challenge an interpretation of the Regulations. r 22