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HomeMy Public PortalAboutCity Council_Resolution No. 23-5648_Approving the Residential Accessibility Modifications Program Guidelines_1/17/2023_RegularRESOLUTION NO. 23-5648 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMPLE CITY, CALIFORNIA, APPROVING THE RESIDENTIAL ACCESSIBILITY MODIFICATIONS PROGRAM GUIDELINES WHEREAS, on September 2017, the California Legislature passed Senate Bill (SB) 2 (Building Homes and Jobs Act), which established a $75 recording fee on real estate documents to increase the supply of affordable housing; and WHEREAS, to administer the funds, the State created the Permanent Local Housing Allocation (PLHA) program, to be administered by the California Department of Housing and Community Development (HCD) via the Los Angeles County Development Authority (LACDA); and WHEREAS, the five-year PLHA program is meant to provide a source of funding for cities and counties to help meet the unmet need for affordable housing and increase the supply of affordable housing; and WHEREAS, on October 6, 2020, the City Council passed Resolution 20-5492 to use the City's PLHA funding for accessibility modifications in lower -income, owner -occupied housing for its Year 1 allocation of $124,815; and WHEREAS, on October 5, 2021, the City Council directed staff to use a portion of the City's PLHA funding for its Year 2 allocation on joining the San Gabriel Valley Regional Housing Trust and the remaining funds on the accessibility modifications in lower -income, owner -occupied housing; and WHEREAS, on November 7, 2022, an email from LACDA staff was sent informing City staff that it was anticipated that PLHA funds would be released by the State. Prior to PLHA funds being released to cities, program guidelines need to be reviewed and approved by LACDA staff; and WHEREAS, on December 20, 2022, City staff presented the draft Residential Accessibility Modifications Program Guidelines for the City Council's review and comment. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF TEMPLE CITY, CALIFORNIA AS FOLLOWS: SECTION 1. The City Council finds that all the facts set forth in the Recitals of this Resolution are true and correct. SECTION 2. That the City Manager or their designee are authorized and directed to submit the Residential Accessibility Modifications Program Guidelines to the LACDA for approval in order to receive the City's PLHA funds, which is attached and incorporated by reference as Exhibit A. Resolution No. 23-5648 Page 2 of 3 SECTION 3. That the City Manager is authorized to approve additional discretionary funding up to 20 percent of the maximum grant amount, when during demolition or construction it is found that additional, unexpected work is required. Examples of such situations include discovering termite damage, dry rot, mold, or structural improvements required by the Building Official. Such situations must be related to the original scope of work and must be unknown prior to work commencing. SECTION 4. The City Council finds that in accordance to Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines, that adoption of the City's RAMP guidelines is not subject to CEQA review because it can be seen with certainty that there is no possibility that the adoption of the City's RAMP guidelines will have a significant effect on the environment. Approval of the City's RAMP guidelines will provide financial assistance for accessibility modifications to property owners that are lower income, this action will not result in or lead to a significant physical change in Temple City. SECTION S. The City Clerk shall certify to the passage and adoption of this resolution. PASSED, APPROVED, AND ADOPTED this 17th day of January 17, 2023. ATTEST: Cynthia Sternquist, Mayor ,17.Aet, APPROVED AS TO FORM: Peggy Kuo, City Clerk Greg Murphy, City Attorney Resolution No. 23-5648 Page 3of3 1, Peggy Kuo, City Clerk of the City of Temple City, hereby certify that the foregoing Resolution No. 23-5648 was adopted by said Council at the regular meeting held on the 17th day of January 2023, by the following vote: AYES: Councilmember — Chavez, Vizcarra, Yu, Man, Sternquist NOES: Councilmember — None ABSENT: Councilmember — None ABSTAIN: Councilmember — None Peggy uo, Ci Clerk City of Temple City Residential Accessibility Modifications Program Guidelines Funded by California Permanent Local Housing Allocation Funds Approved on January 17, 2023 INTRODUCTION In 2017, the California Legislature passed Senate Bill 2 (Building Homes and Jobs Act), which established a $75 recording fee on all real estate documents recorded at the Los Angeles County Recorder's Office. The intention of SB 2 was to generate funding to increase the supply of affordable housing. As a result, the State created the Permanent Local Housing Allocation (PLHA) program, which is administered by the California Department of Housing and Urban Development (HCD). The PLHA program is meant to provide a source of funding for cities and counties to help meet the unmet need for affordable housing and increase the supply of affordable housing. Similar to the City's Community Development Block Grant (CDBG) funds, the City will receive PLHA funds through the Los Angeles County Development Authority (LACDA) since Temple City is a non -entitlement city. The City Council adopted a resolution to establish a Residential Accessibility Modifications Program (RAMP), which was one of the eligible programs to supply affordable housing. The City of Temple City supports efforts to improve the City's single-family dwelling housing stock and allow residents the ability to age in -place. The City has offered a housing rehabilitation loan and grant program, as well as an associated grant program for asbestos and lead -based paint testing and abatement. The RAMP will offer a one-time grant up to $25,000 to eligible owner -occupied residents that need accessibility improvements at their property. Grant funds will be used to hire licensed contractors, if applicable, for various house modifications to make lifelong homes for income - qualified elderly property owners and/or income -qualified disabled persons. Temple City — Residential Accessibility Modifications Program Guidelines Page 1 of 33 PROGRAM ADMINISTRATION Regulations Governing the Program The RAMP's policies and procedures conform to State and LACDA's regulations governing the PLHA funds, and policies and procedures governing the activities of the City. If the contents of this Manual conflict with any of the above, it is the regulations noted above, that prevail. The City's RAMP Manual, as well as the State and LACDA regulations, are incorporated by reference and the applicant agrees to be subject to their terms and conditions. Staff and Authority The Program is managed by the City's Community Development Department — Housing Division. The Director of Community Development ("Director") is responsible for delivering the Program and enforcing these policies and procedures. The Director may delegate duties of program delivery to the Associate Planner and/or Housing Consultant ("Program Staff"), as appropriate. Conflict Resolution All the complaints concerning the Program should be made, in writing, and a hearing is to be held within seven (7) business days. All parties must present their contentions and interpretations by themselves, or through counsel. The Director must make a decision within seven (7) business days from the close of the arbitration and respond in writing within fifteen (15) business days. If the applicant is not satisfied with the Director's decision, a final request for an appeal may be filed with the City Manager. The applicant will be allowed to present all pertinent facts to the City Manager that may have bearing on the issue to be resolved. The decision of the City Manager will be final. Files and Record Keeping Program Staff is to establish and maintain a permanent "master file" for each application. Master files are to be kept for five years after the project has been completed. Applications that were given a program number and were denied, withdrawn, or canceled will be kept for five years. Applications that were submitted, without all proper information and were canceled, information will be inputted into the database and kept for one year. Funding Availability The Program is subject to the PLHA funding availability. The Program is not meant as an emergency program, as State and County regulations apply and must be met prior to use of the funds. Temple City- Residential Accessibility Modifications Program Guidelines Page 2 of 33 Selection Process The City will accept interest forms from residents as long as the program has funding. The City will have a cut-off at the end of each fiscal year. If an interest form is received property owners will be assisted based on a tiered system and priority is given to property owners with the most (eight) points, which will be referred to as the highest tier. Below is a description of the point system for RAMP. Points 1 Description Property owner(s) are 65 years of age or older 2 Property owner(s) or family members that have a physical disability 3 Extremely low-income household 2 Low-income household 1 Moderate -income household 3 No prior housing rehabilitation assistance from the City 2 Housing rehabilitation assistance from the City between six and 10 years 1 Housing rehabilitation assistance from the City within the past five years Interest forms can be submitted throughout the year. However, at the beginning of the calendar year, the Director will conduct a random selection for each tier. If there are RAMP funds available after going through all the applicants in the first tier, the Director will randomly select applicants from the next tier, and so on until all funds are allocated. The backup applicants will be chosen in each tier in case the chosen applicants do not meet the requirements of the program or withdraw their application. Interest forms received after January 1 will be held and eligible for the following calendar year's selection process; if a property owner is not selected, their name(s) will remain on the waiting list for the following year. Conflict of Interest The City must meet all the requirements of 24CFR, PART 570.611. Whenever a relationship is declared between applicants, contractor, and Program Staff, the Director must submit a memo to the City Manager to fully disclose the nature of the relationship and asking for directive in the assignment of the case to appropriate staff. Ordinarily the case is to be assigned to Program Staff that do not have preexisting relationships with the applicant. A preexisting relationship will not disqualify an applicant from participating in the program, provided the applicant meets all eligibility criteria. No member of the city government, staff, other elected or appointed city officials, employees, consultants or agent of the City who exercise policy, decision -making functions, or responsibilities in connection with the planning and implementation of RAMP may directly or indirectly be eligible to benefit from RAMP, unless the application for assistance has Temple City — Residential Accessibility Modifications Program Guidelines Page 3 of 33 been reviewed and approved according to applicable LACDA policies; and/or approved by the City and state organization providing the funds. This ineligibility remains for one year after an individual's relationship with the City ends. Fair Housing and Equal Opportunity Program activities must comply with the following Federal Laws, executive orders, and regulations pertaining to fair housing and equal opportunity. 1. Title VI of the Civil Rights Act of 1964, as amended (42 U.S.C. 2000d et seq.), which states that no person may be excluded from participation in, denied the benefits of, or subjected to discrimination under any program or activity receiving Federal financial assistance on the basis of race, color, or national origin. 2. The Fair Housing Act (42 U.S.C. 3601-3620), which prohibits discrimination in the sale or rental of housing, the financing of housing, or the provision of brokerage services against any person on the basis of race, color, religion, sex, national origin, handicap, or familial status. 3. Equal Opportunity in Housing (Executive Order 11063, as amended by Executive Order 12259), which prohibits discrimination against individuals on the basis of race, color, religion, sex, or national origin in the sale, rental, leasing, or disposition of residential property or in the use or occupancy of housing assisted with Federal funds. 4. Age discrimination Act of 1975, as Amended (42 U.S.C. 6101), which prohibits age discrimination in programs receiving Federal financial assistance. 5. Section 504 of the Rehabilitation Act of 1973 prohibits the exclusion of an otherwise qualified individual, solely by reason of disability, from participation under any program receiving Federal funds. The City will take appropriate steps to ensure effective communication with disabled housing applicants, residents, and members of the public. 6. Equal Employment Opportunity, Executive Order 11246, as amended, which prohibits discrimination against any employee or applicant for employment because of race, color, religion, sex, or national origin. This must be stipulated in all construction contracts. Program Outreach and Marketing All outreach efforts will be done in accordance with State regulations pertaining to fair housing and equal opportunity to assure nondiscriminatory treatment, outreach, and access to the Program. Methods of outreach will be as follows: • Contact current and past Home Improvement Program participants. • Advertisement in local newspaper and/or newsletters. Temple City — Residential Accessibility Modifications Program Guidelines Page 4 of 33 • Provide program information handouts at various City locations, such as City Hall, Live Oak Park, and the City's website. • Presentations and/or brochures at local events. • Post on Temple City's social media accounts. Labor Compliance The RAMP will be subject to Prevailing Wages and Davis -Bacon, where applicable. Section 3 Requirements Section 3 requirements apply to contracts of $100,000 or more. Due to the Program's maximum standard grant amount of $25,000 the Program is exempt Section 3 requirements. However, special approval of projects or a project combined with the City's Home Improvement Program resulting in a contractor receiving more than $100,000 will be subject to Section 3 requirements. Amending the Policies and Procedures Manual The Director and/or Program Staff may recommend policy and procedural changes. All changes made must be in accordance with federal and state regulations. Program policy and procedural Oink changes require the Director's approval and must be reported to the City's Program Manager at LACDA. Exceptions to Program Policies and Procedures Any case to which a standard policy or procedure, as stated in this manual, does not apply or an applicant is treated differently from others of the same class would be an exception. Exceptions to the Program's policies and procedures are allowed on an individual case basis. A homeowner may request for a policy exception by providing a written explanation of reason for request. This written request is then submitted to Program Staff, who will then present a written recommendation report to the Director. The report must contain a narrative, the recommended course of action, and include relevant documentation to support the exception requested. The Director may approve the policy or procedural exception, for the specific instance, by signing at the bottom of the written recommendation. If the Director denies the request, the homeowner may appeal the decision to the City Manager. If the City Manager denies the appeal, that will be the final decision. The approval or denial of the exception must be kept in the project master file. IMMO Temple City— Residential Accessibility Modifications Program Guidelines Page 5 of 33 PROGRAM SUMMARY AND GUIDELINES The RAMP provides financial assistance for accessibility improvements of owner -occupied single- family dwelling, *mobile unit, *condominium unit or *townhouse unit located in the City of Temple City, subject to household eligibility and the following Program guidelines. Financial assistance will not be provided if the household and/or property do not meet the eligibility standards outlined in these guidelines. *Mobile Units, condominium units, and townhouse units are only eligible for interior repairs. Residential Accessible Modifications Program Grant The following area property owner and occupancy eligibility requirements: • Property must be located within the Temple City's city limits. • Property must be a single-family home, mobile home, condominium (interior improvements only), or townhome (interior improvements only). • Property must be owner -occupied and have held title for a minimum of two years. • Total household income is not to exceed current household income limits for Los Angeles County that are established by the U.S. Department of Housing and Urban Development (HUD). • Property owners must be 65 years of age or older, or a household member(s) with access disabilities that is 18 years of age or older. • The property owner(s) must not have assets exceeding $200,000, equity of house is not counted towards assets. • Have not received housing financial assistance from the City within the past five years unless nobody is on the waiting list. • Property owner(s) must remain occupied for a minimum of two years after the assistance. Applicant Eligibility Requirements Household income cannot exceed 80 percent of the area median income, adjusted for the household size. The household income limits are published by HUD each year and are sent by LACDA staff to the City. All homeowners must certify that they meet the household income eligibility requirements and have their household income documented. The income limits in place at the time of approval will apply when determining applicant income eligibility. Household income is defined as the income for everyone 18 years of age or older residing in the house; this includes people 18 years or older that are renting a room from the property owner. Temple City — Residential Accessibility Modifications Program Guidelines Page 6 of 33 Eligible Uses of Funds Grant funds must be used for the purpose of repairs and accessibility improvements. Eligible costs are included, but are not limited to: • Concrete mobility ramp(s) from the driveway leading to the main entrance for the residence • Aluminum mobility ramp(s) from the driveway leading to the main entrance for the residence • Lowering kitchen cabinets and countertops • Widening existing opening(s) or interior doorway(s) • Replace existing toilet(s) with American with Disabilities Act (ADA) toilet and grab bars • Replace existing bathtub(s) with walk-in shower(s) • Replace existing bathtub(s) with walk-in bathtub(s) • Lowering light switches or electrical outlets • Replace doorknob hardware with handles • Install stair lift for houses with a staircase • Grab bar installation • Labor and materials • Building permits and planning approvals • Other costs of repairs (direct or indirect, such as contractor's overhead and profit) • Plans and specifications. • Reports — Termite inspection, soils, geologic, and credit. • Initial costs of asbestos and/or lead inspection, costs associated with the remediation/abatement of asbestos and/or lead -based paint, and costs of lead clearance test only in conjunction with other rehabilitation work. Asbestos and/or lead -related costs, such as testing/assessment, hazard reduction work, and clearance will be paid as a lead grant. Project -related soft costs, such as title reports, appraisal costs, cost of third -party verifications, recording fees, etc., will be paid by the City as project delivery cost and will not be included as part of the grant, provided the applicant follows through with the program. If homeowner cancels assistance, they may be subject to reimburse the City for these costs. Exception for reimbursement would be loss of job, illness of homeowner or family member residing in the house. Temple City — Residential Accessibility Modifications Program Guidelines Page 7 of 33 Lead -Based Paint Notification Requirements Occupants of homes constructed prior to 1978 must receive proper notification of Lead- Based Paint (LBP) hazards as follows: 1. The Lead Hazard Information Pamphlet published by the EPA/HUD/Consumer Product Safety Commission must be given to all owners regardless of the cost of rehabilitation or paint test findings. 2. If lead -based paint is found through testing or if presumed, a Notice of Lead Hazard Evaluation or Presumption must also be supplied. 3. When Lead hazards are present, a Notice of Lead Hazard Reduction Activity and a Lead Hazard Evaluation Report must also be provided. Other Requirements 1. Property owners must submit an application and obtain approval prior to beginning repairs. Costs of repairs completed prior to assistance approval are not eligible for reimbursement. 2. 100% of financial assistance must be used to rehabilitate the home. No cash is provided to homeowner. 3. There is a maximum of $200,000 asset limitation to apply for the program. The value of homeowner's permanent residence not to be included as part of assets. Income derived from assets must be included in the income calculation. 4. Fire insurance: The homeowner must maintain fire insurance on the property for the duration of the program. This insurance must be an amount adequate to cover all encumbrances on the property. The insurer must identify the City as Loss Payee for the amount of the program grant. A binder must be provided to the City and maintained in the project master file. 5. Flood insurance: For homes in a 100 -year flood zone, the homeowner must maintain flood insurance in an amount adequate to secure the grant and all other encumbrances. This policy must designate the City as Loss Payee and a binder must be provided to the City and maintained in the project master file. 6. Homeowners must maintain the property at post -rehabilitation conditions for the term of the grant. Should the property not be maintained accordingly, the grant would be considered in default, and due and payable. Homeowner is subject to reimburse the City the full amount of the grant. Temple City— Residential Accessibility Modifications Program Guidelines Page 8 of 33 Termination or Denial of Program Assistance Applicants may be terminated from Program or denied assistance for the following reasons. This is not a complete list and only includes those areas for which the applicant has direct control. 1. Providing false information or withholding information. 2. Lack of proper paperwork. 3. Assets exceeding $200,000; equity of house is not counted towards assets. 4. If any member of the family commits fraud, bribery or other corrupt or criminal act in connection with any federal, state, or local housing and assistance programs. 5. Not following procedures. 6. If any member of the family engages in harassing, threaten abusive or violent behavior toward Program Staff. 7. If any member refuses to sign or submit any forms. 8. If program applicants or household members do not meet the income qualification guidelines. Termination Procedures 1. Notify applicant in writing. 2. Informal hearing meeting with Program Staff. 3. If the applicant wishes to appeal the termination, the case will be submitted to the Community Development Director for further review and final decision. Additional Funds Any funds not covered by the grant program or exceed the allotted $25,000 will be the homeowner's responsibility and must be paid directly to the City. No personal checks should be made by the homeowner directly to the contractor for work performed under the grant program. The City will then make a payment to the Contractor on behalf of the homeowner. If an unforeseen expense occurs during construction, a change order will be required to be signed by the homeowner(s) and the Contractor and submitted to the City Manager for approval prior to the start of the additional work. If during demolition or construction it is found that additional, unexpected work is required, the City Manager can approve additional discretionary funding up to 20 percent of the maximum grant amount. Examples of such situations include discovering termite damage, dry rot, mold, or structural improvements required by the Building Official. Such situations must be related to the original scope of work and must be unknown prior to work commencing. Temple City — Residential Accessibility Modifications Program Guidelines Page 9 of 34 Monitoring Continued residency may be monitored each year. The homeowner may be required to must submit an annual certification that the property continues to be their principal place of residence, and attach appropriate verification of residency, such as utility bill and insurance renewal that provides evidence that the property is occupied by the owner(s). Application Intake The purpose of the intake is to establish eligibility of the applicant(s). The intake is conducted by the City's Housing Consultant. The intake is completed by the applicant(s) submitting a complete application and supporting documentation. Non -complete applications will be returned to the applicant with a list of necessary items to process the application. It is crucial for the Program Staff to estimate household income and personal assets. The income and personal assets completed during the intake process is not verified and calculated until further documentation is obtained for validation. Temple City— Residential Accessibility Modifications Program Guidelines Page 10 of 34 Verification of Property Ownership and Status In addition to income documentation, the Program Staff must obtain supporting documentation to determine eligibility for other program requirements. Eligibility Requirement Must verify with at least one of the following: Verification of ownership: • Copy of grant deed or, quitclaim deed, The property must be owned by the • Title report or insurance issued within the last applicants for a minimum of 2 years. year, which verifies the vesting to be the applicants' name(s) Verification that property is owner- • Copy of current property tax bill that shows occupied: homeowner's exemption and the subject The property must be the owner's principal place of residence. property as the mailing address Verification that mortgage payment • Copy of most recent mortgage statement that is current. shows payment is current Assistance cannot be provided if payment is not current. • Mortgage history printout Verification that property taxes are • Printout from the Los Angeles County Tax up to date. Collector's website that shows the tax as Assistance cannot be provided if taxes current. are not current. ■ Receipt of payment (if payment has been recently made and website has not been updated) ■ Copy of payment arrangements from tax collector for delinquent tax Verification that insurance is up -to • Copy of current evidence of insurance or date. policy. It must show the expiration date, or specify that it is continuous Income Qualifications Participation in RAMP is limited to applicants whose annual household income does not exceed the HUD -established income limits for 80 percent of area median income. These income limits provide a criterion for eligibility based on the total amount of annual household income adjusted for household size. The City will require documentation of both household size and household income information in order to determine applicant eligibility. The RAMP utilizes the annual income definition as defined in 24 CFR 5.609 (Part 5 annual income) to determine household income eligibility. The latest income limits chart provided by HUD will be used. During the intake, Program Staff must calculate household income earnings of all adult household members. Temple City— Residential Accessibility Modifications Program Guidelines Page 11 of 34 Income may be certified based on information obtained from third party verifications and the review of documents provided at the time of application. The income certification is valid for a period of six months except for Federal and State income tax returns which may not be older than one (1) year. It will not be required to re -certify income unless six months have lapsed from the time of certification and no expenditures have been incurred for the project. Funds must be expended or committed to project prior to the expiration of the validation period. The following is a list of income sources, and examples of acceptable documentation: Type of Income Documentation Source — not older than 3 months Gross employment income: • Employment verification from employer • Wages • Paycheck stubs (copies of the most recent four weeks 1 • Salary of paycheck stubs) ■ Certified copies of tax returns and W -2's if within the • Overtime first quarter of the new calendar year, requires a ■ Tips signed 4506 form • Commissions • Bonuses • Copy of employment contract, which must specify the earnings amount and expiration date Net self-employment or • Certified copies of tax returns, with signed 4506 form business income for the previous 2 years (including all attachments, specifically Schedule "C") ■ Audited financial statement Social security benefits ■ Written verification from the Social Security • Including SSI payments Administration ■ Copy of award letter stipulating the benefit amount Including anticipated Cost of Living Adjustments (COLAs) ■ Copy of bank statement verifying the direct deposit of the benefit amount Temple City— Residential Accessibility Modifications Program Guidelines Page 12 of 34 Type of Income Documentation Source - not older than 3 months Periodic determinable • Copy of court decree that establishes amount of allowances: support • Child support • Alimony • Verification from District Attorney's office that verifies the amount of support • Notarized affidavit of support • Regular contributions received from organizations or persons not residing in the dwelling Net rental income • Tax returns, including schedule "E" • Copies of rental agreements/leases, along with a breakdown of monthly expenses to determine net income • Copies of most recent rent checks, along with a breakdown of monthly expenses to determine net income Type of Income • Documentation Source — not older than 6 months Welfare assistance: • Benefit award letter specifying the amount of the • Payments under the benefit Temporary Assistance for • Verification from case worker stating the benefit Needy Families (TANF) amount ■ Welfare or General relief benefit • Copy of checks Income from assets: • Bank statements showing the Last 6 months of interest • Savings account(s) • Savings passbook • Checking account(s) • Verification of deposit • Investments • Most recent income tax returns showing the interest earned • investment statements showing the dividends earned and/or anticipated earnings Temple City— Residential Accessibility Modifications Program Guidelines Page 13 of 34 Type of Income Documentation Source — not older than 3 months Gross number of payments in • Benefit award letter showing monthly benefit lieu of earnings: • of checks • Unemployment • Disability compensation • Worker's compensation Gross amount of periodic payment: • • Statement of benefits Benefit award letter • Annuities • Verification from awarding agency/entity • Pensions/Retirement • Disability benefits ■ Death benefits Other sources of income: • Union benefits • Statement of benefit award that evidences benefit amount • Other income not specified • Documentation to support declaration of other above income No income: • EDD Notice of Unemployment • Verification of previous employment No tax returns: ■ Verification from IRS that no taxes were filed. Third Party Verifications may be required. When requesting third -party verifications the Program Staff must attach the Confidential Information Disclosure Authorization to the verification form, which authorizes the third -party to release the information requested. Third - party written verifications may be in the form of original forms, e-mail, or Internet. Although written requests and responses are generally preferred, conversations with a third -party are acceptable if documented through a memorandum to the file, which specifies the contact person, information conveyed, and date of call. In all cases, the Program Staff must make sure that the person verifying the information is a valid source. Fees associated with third -party verifications are paid by the City but may be reimbursed through activity delivery costs. Temple City— Residential Accessibility Modifications Program Guidelines Page 14 of 34 Assessing Information and Computing Income The Program Staff must calculate the household income based on the documentation obtained and complete an Anticipated Income Determination form for each household. 1. When assessing the documentation, it is important to determine: a. The basis on which employees are paid, such as hourly, weekly, monthly, with or without overtime, etc. b. In the case of overtime, it is crucial to determine whether the overtime is irregular or a predictable part of the person's income. c. If the household member will continue to earn overtime pay on a regular basis, then the Program Staff must calculate the average amount of overtime pay earned over the period used to calculate income eligibility, and the average amount of overtime earnings must be included in the income projection for the household. d. If overtime work is not constant and will not be constant in the next 12 months, the Program Staff must request detailed overtime information from the employer in the Verification of Employment, and use the information supplied by the employer to determine how overtime is to be calculated. Formulas used to determine annual income: Frequency Formula Weekly Multiply gross income by 52 weeks Biweekly Multiply gross income by 26 weeks Twice -a -month Multiply gross income by 24 weeks Monthly Multiply gross income by 12 months If the City has verification that the household member has been employed by the same employer from the beginning of the calendar year, then the monthly income can be calculated by dividing the year-to-date (YTD) annual earnings by the number of months worked. For example, if the paycheck stub indicates that the pay period ended June 15, 2022, and the YTD is $18,500, then you divide $18,500 by 6.5 months, and annualize the calculated monthly earnings by multiplying the result by 12. $18,500 _ 6.5 = $2,846.15 per month $2,846.15 x 12 = $34,153.80 per year Temple City— Residential Accessibility Modifications Program Guidelines Page 15 of 34 To determine the number of months to use for the calculation, you must count the number of full months and determine the percentage of time for the partial month. In the example above, the YTD included earnings of 15 days of a 30 -day month. Thus, you divide 15 by 30 to establish the percentage (15 _ 30 = 0.50). In this instance, the employee worked 6.5 months. The above method will only work if staff has verified that the household member has worked for that same employer since the beginning of the calendar year, and if the paycheck stub reflects the year-to-date earnings that include all overtime, bonuses, etc. For adults in the household that have no income, a No Income Certification form must be signed and maintained for documentation purposes. Household Size Since income limits are adjusted by household size, it is crucial to accurately determine the size of the applicant's household. For income purposes all household members' income is to be counted regardless of relationship. This includes tenants, borders, permanent live-in caretakers, and noneligible occupants. Foster children are not to be included as part of the total household members when determining the eligibility for the addition of bedrooms and bathrooms. A child who is subject to shared custody may be counted as part of the household if the child resides with the household at least 50% of the time. The Program Staff must obtain verification of dependent children living at home, such as copy of birth certificate, court order awarding child custody, school records, or other documentation that will verify the dependent of part of the household. Unborn children are not considered part of the household. The Program Staff must review the "breakdown of household members" portion of the application, which is where the borrower discloses all the members of the household. The Program Staff must also look for "red flags" that indicate discrepancies in the household size disclosed by the applicant. For example, if the applicant claims that he has 3 dependent children, but the tax returns only show 2 children. In this case, the Program Staff must obtain more information and additional documentation to support the 3rd dependent child, such as a copy of the birth certificate for a newborn, a court order that grants custody of the child, or school records for the additional dependent. For household members of 18 years of age and older who are full-time students, the Program Staff must obtain verification of full-time student status, such as school records, registration, or other documentation that will evidence student status. Verification of Dependents • Copy of birth certificate(s) • Copy of school records • Adoption documents • Court order warding custody • Proof of full-time student status for dependents 18+ years of age Temple City— Residential Accessibility Modifications Program Guidelines Page 16 of 34 Comparing Household Income to Income Limits Once the household size and anticipated household income has been determined, the information must be compared to the Income Limits issued by HUD to verify eligibility. The Program Staff must make sure to use the most recent income limits chart, which are updated every March. Households must have incomes at or below 80 percent AMI, adjusted for family size, to be eligible for the Program. Credit Reports All occupants 18 and older may be requested to complete the Authorization for Release of Information form. Credit reports may be ordered for all adult members of the household. Upon receipt of credit reports they will be reviewed to insure they coincide with reported income. Asbestos and Lead -Based Paint Assessment Order lead testing assessment (when applicable) to comply with HUD's Lead Safe Housing Rule, a Certified Environmental Company must perform a lead inspection to test surfaces to be disturbed during rehabilitation activities on properties built prior to 1978. A post lead clearance is also required. Refer to Appendix C: Lead- Based Paint Hazard Reduction Requirements. ""` Application — Follow -Up As needed, request all required third party verifications, such as verifications of mortgage, employment, benefits, or deposit. Upon receipt and review of documentation (income, property information, credit report, etc.) the Housing Consultant will notify the applicants of their eligibility or request additional documents for clarification. The homeowner(s) will be notified in writing of the additional documentation and will be given (30) days to submit. If the homeowner(s) do not respond within the (30) calendar day deadline specified in the correspondence, the Housing Consultant will cancel the file. If the file is canceled, the homeowner(s) will not be eligible to re- apply for the program until a year from the closing of the file. The Housing Consultant will only permit a file to be re -instated due to illness, hospitalization, or death in the immediate family. Request for the re -instatement must be done in writing within 30 calendar days of the cancellation of the file. The Housing Consultant must keep a calendar or "tickler file" for timely follow-up after the initial intake. Denial of Application If during the application intake the Housing Consultant determines that the applicant does not qualify for the Program, a denial letter must be mailed, indicating the reason for denial. The applicant will be given a 30 -day period to appeal the denial. 11111111110 Temple City— Residential Accessibility Modifications Program Guidelines Page 17 of 34 Approval of Application After the applicant's eligibility is established, the Housing Consultant will notify applicant in writing of their eligibility for the program and indicate the assistance to be provided. Initial Property Inspection The City's Housing Consultant will schedule an initial property inspection with the property owner. The initial inspection will allow the property to be evaluated and determine which repair items will be addressed. In addition, after the inspection a determination will be made as to whether lead - based paint stabilization or abatement will be required. To facilitate the inspection the following steps should be taken: 1. Coordinate inspection with Building and Safety Inspector (if necessary). 2. In conducting the inspection, schedule a time with the property owner to conduct the formal property inspection. At the time of the inspection, the Housing Consultant should: a. Review the property. b. Obtain a list of general accessibility improvements desired by the homeowner. c. Identify improvements needed for the house and separate into the different levels below. Level 1 Mobility Ramp to entrance of home Widening front door, hallways, and/or doors Handrails Replace doorknobs with lever handles Lowering light switches and electrical plugs Stair lift — only if the house is two -stories and no bedroom or bathroom is on the first floor Level 2 Bathroom roll in shower Replace toilets with ADA toilets Grab bars Wheelchair level accessible vanity/sink Level 3 Kitchen modifications — lower cabinets, countertops, electrical outlets, and sink Temple City— Residential Accessibility Modifications Program Guidelines Page 18 of 34 d. Obtain homeowner preferences regarding options for accessibility improvements by each level. The homeowner cannot select improvements from Level 2 if the Housing Consultant has identified improvements are needed from Level 1, and improvements in Level 3 cannot be covered by the RAMP grant if improvements are needed from Level 2. e. Take thorough pre -construction photos of each area in which will occur. Additionally, if necessary for historical purposes, take photos of the subject property, property to the right and left and across the street. 3. Order termite inspection reports. The City's Housing Consultant must fax the request to at least three (3) qualified termite companies and keep the fax confirmation in the project master file. 4. If the property has been inspected and treated for termites within the last 12 months, a new termite report is not required. In which case, the City's Housing Consultant must request a copy of the Notice of Work Completed from the homeowners. 5. Copies of Asbestos and Lead report/assessment and termite report must be provided to the homeowner. The City's Housing must also take into consideration the reports when preparing the work write-up. Historic Preservation Historic preservation requirements apply to properties that are 50 years old or older. Historic properties are residential properties listed in or eligible to be listed in the National Register of Historic Places, state, or local inventory of historic places, designated as a historic landmark, or designated as contributing to a historic district by local law or ordinance. Program Staff must submit photographs of the property being assisted and surrounding properties and property information on the LACDA Residential Rehabilitation Panel. This will be reviewed by LACDA staff, who will give clearance and instructions if the property is deemed to have historical significance. Environmental Requirements Under Section 104(g) of the Act, and in conformance with the regulations in 24 CFR Part 58, an Environmental Assessment is to be completed for all properties to be rehabilitated. The process to be followed includes: the scope of work is reviewed and approved by the City staff; the City of Temple City may be required to submit to LACDA a Basic Property Identification Form for all work to be performed on each property to be rehabilitated. Review and clearance of proposed actions through this process must be granted prior to incurring any costs or starting the rehabilitation of the property. Historic properties that may be adversely impacted will be evaluated by the State Historic Preservation Officer. Floodplain review and public noticing in compliance with the National Environmental Policy Act of 1969 must also be completed where applicable. Each property must be cleared through the CDC on an individual basis. Temple City — Residential Accessibility Modifications Program Guidelines Page 19 of 34 Work Write-up The City's Housing Consultant must prepare the Work Write-up, which is the set of instructions specifying the proposed accessibility improvements and will also serve as part of the contract. The Work Write -Up must describe and address any code violations, health and safety deficiencies, and lead hazards in a manner that is sufficiently detailed to serve as the basis for obtaining bids from contractors. Work Write -Up must include the following: 1. Program requirements, such as lead hazard reduction, correction of health and safety deficiencies and of code violations and incipient code violations, work that improves energy efficiency, and other eligible general property rehabilitation. 2. Planning, Building and Engineering Department requirements. 3. The type of materials that are allowed under the Program. No luxury upgrades are allowed. Deteriorated materials and components must be replaced with like materials. The write-up must include adjective strings to describe materials, such as "Single hung, dual glazed, vinyl windows." 4. Quantity, for example the number of doors, lever handles, etc. 5. Location of where the rehabilitation will occur, as in the bedroom, kitchen, etc. 6. Construction method and specific instructions of the proposed work, which uses action verbs strings to describe the method, such as "power wash, prep and repair stucco surfaces". 7. Special conditions, requirements, and/or installation method, as when working with lead containment areas, termite infestation, etc. 8. Performance standards, such as durability and warranties. 9. General provisions, which define rules that apply to all write-ups, such as definitions, process, etc. 10. Plans (when applicable). 11. No cross -outs or white out are allowed for deletion or changes of line items. An amended work write-up must be printed out, reflecting any changes made, along with the date of amendment prior to sending out to contractors for bidding. 12. The work write-up must be saved in the project master file. Cost Analysis The City of Temple City building permit valuation estimates but may be adjusted by the Program Staff to reflect current market conditions based upon recently completed projects. Temple City— Residential Accessibility Modifications Program Guidelines Page 20 of 34 Bid Process Once the work write-up is completed and ready to put out to bid, the Program Staff will assist the homeowner in the bid process by sending bid packages to qualified general contractors, selected by homeowner, who are on the City's Courtesy List of Contractors, and in serving as the primary contact for the procurement process, the homeowner must actively participate in the bid process by obtaining bids from qualified contractors (Grant only) and selecting the contractor. The City requires a selection of at least 6 contractors, but the Homeowner may also choose to send out bid packages to all contractors on the Courtesy List and other qualified contractors (Loans only). All the bid packages must be identical to ensure the bid process is an open competitive process, and the bid packages must include a cover page with special instructions specifying bid opening date and the deadline to submit the proposal. Additionally, bid packages will include, when appropriate: 1. Work write-up, excluding any estimates of cost. The Program Staff estimate must never be included in the bid package. 2. Copy of the lead and termite report, when applicable. 3. Asbestos and/or Lead -based paint inspection work write-up and report (when applicable) 4. Engineering report (when applicable). 5. Plans or drawings (when applicable). 6. General provisions and technical standards specifications. 7. Any other pertinent documentation, such as Planning, Building and Engineering requirements. Bid Requirements 1. Only lead certified contractors can bid on lead hazard reduction related work. Additionally, only asbestos certified contractors can bid on asbestos hazard reduction related work. 2. A minimum of three bids are preferred, however the City has the option to allow two bids in some instances. 3. A maximum of 20% for contractor overhead and profit is allowed. 4. Bidding contractors must attach any addendums to the work write-up to address all health and safety, or code violation deficiencies not addressed in the work write-up. 5. The homeowner must submit name, address and state contractor's license number for selected Contractor's that are not on the City's Courtesy List. 6. Upon the bid deadline, the Program Staff must review all bids received, as follows: Temple City — Residential Accessibility Modifications Program Guidelines Page 21 of 34 a. Verify the math / totals. b. Prepare a Bid Comparison Sheet. c. Compare bids to staff estimate to ensure that the proposed costs are reasonable and within 20% of initial Staff estimate. Schedule an appointment to jointly review the bids with the homeowner. d. Provide copies of all the bids to homeowner. 7. The homeowner must review the bids and select a contractor within ten (10) business days from the date the Program Staff provides copies of the bids. The homeowner is required to accept the lowest reasonable bid. If the homeowner wishes to select a contractor with a higher bid, the homeowner is responsible for the difference between the lowest bidder. 8. If the homeowner does not wish to select any of the bidding contractors, the option to obtain additional bids on their own must be made available. The City will allow up to an additional fifteen (15) business days for this process. Proper follow-up from the Program Staff is required. 9. If the selected bid exceeds the staff cost analysis, staff will assess the cost analysis in comparison with submitted bids to determine whether actual market cost is higher and will require adjustment of cost analysis. General Contractor Courtesy List An important element of a successful RAMP is good working relationships between the homeowners and their general contractors. Since most homeowners have no prior experience with contractors, the City maintains a list of qualified contractors, who have demonstrated an interest in working with projects funded through the Program. The General Contractor Courtesy List ("List") is offered to the public subject to the following: 1. The List is an aid in contractor selection, only. 2. Using a contractor from the List is not mandatory for Program participants. The homeowner may choose any qualified contractor who meets contractor requirements, even if they are not on the List. 3. The City does not recommend, endorse, or represent any of the contractors on the List. 4. The City does not warrant any construction work or provide insurance coverage. 5. The City does not guarantee the quality of the work performed by contractors on the List. 6. The City reserves the right to add or remove any contractor from the List. Temple City— Residential Accessibility Modifications Program Guidelines Page 22 of 34 Contractor Qualifications General contractors and sub -contractors who meet the following Program requirements are eligible to enter into Program rehabilitation contracts. 1. State of California Contractor's License in good standing (subject to verification with the California State Licensing Board (CSLB) and to be maintained on file). 2. Current contractor's licensing bond ($12,500 minimum). Current liability insurance ($1,000,000 minimum coverage). 3. Current worker's compensation insurance if required by law. 4. Contractor must not be debarred by HUD, as identified in www.SAM.gov (verification to be maintained in the project file). 5. For lead and asbestos contractors: a. Current State of California Department of Health Services Lead -Related Construction Certifications for all workers and managers b. Liability and workers compensation insurance for lead -related work c. Current injury and illness prevention program plan. 6. Contractor qualifications must be checked, either annually or when a rehabilitation contract is awarded, to ensure compliance of licensing and insurance requirements. 7. Applications from local contractors (including women and minority contractors) are encouraged. 8. A check on licensing, insurance, and debarment documentation will be made regularly to ensure they are current prior to issuing a Notice to Proceed on any project. Contractor Application and Documentation Applications are accepted from contractors at any time. The following is the list of documents required for consideration: 1. Completed Contractor Qualification Application Packet. a. Contractor Qualification Application b. W-9 Form c. Equal Opportunity Forms d. Non -debarment Certification Temple City — Residential Accessibility Modifications Program Guidelines Page 23 of 34 2. Copy of current contractor's license. 3. Current certificate of liability insurance naming the City as an additional certificate holder. 4. Current certificate of worker's compensation insurance naming the City as an additional certificate holder. 5. Copy of City business license. 6. W-9 Taxpayer Number and Certification. 7. Copy of current driver's license. 8. For lead and asbestos contractors: a. Copy of current State of California Department of Health Services Lead- Related/Asbestos Construction Certifications for all workers and managers. b. Liability and workers compensation insurance must cover lead -related work. c. Copy of medical reports and fit test respirator for all asbestos/lead-certified workers and managers. d. Copy of the company's current site -specific injury and illness prevention program (IIPP) plan. Temple City — Residential Accessibility Modifications Program Guidelines Page 24 of 34 Verification of Contractor Qualifications The City's Housing Consultant must review the contractor application and verify pertinent information, as follows: 1. Verify licensing information through the Contractor State License Board website at www.cslb.ca.gov. A printout is required for the contractor master file. 2. Verify that contractor has not been debarred by HUD or the State of California by accessing www.SAM.gov and keeping a copy in the project file. 3. Verify at least 3 of the references provided by using the Contractor Profile Questionnaire Reference Checklist. If each of the investigations is favorable, the contractor is added to the List, notified by mail, and provided a copy of the City's Standard Specifications and an Agreement for Rehabilitation form, for reference. If any of the investigations result in unfavorable comment, the contractor is not added to the List, and is notified of the outcome by mail. The notification letter must list the reason(s) the contractor was not approved. The contractor may appeal an unfavorable decision by sending a letter to the Community Development Director, who must render a final decision within one (1) week of receipt of an appeal letter. Contractor Central File Once contractor eligibility has been established, the Program Staff must set up a contractor file that contains all of the required documentation and eligibility verification. Proper follow-up is required to ensure that licensing, insurance, and debarment documentation is current prior to issuing a Notice to Proceed on any project. Disqualification of Contractors from the List Contractors are disqualified from the List if they do not maintain their business credentials, do not comply with Program policies, or perform poorly when awarded a rehabilitation contract. Evidence constituting just cause for contractor disqualification includes: 1. Failure to maintain State Contractors Board license. 2. Insolvency, bankruptcy or other conduct or condition causing monetary loss for a homeowner, or the Program, in connection with construction contracts. 3. Activities conflicting with Program policies or procedures such as: bid rigging, kickbacks to homeowners, hiring homeowners for pay, failure to comply with the Standard Specifications, abusing cost increases. 4. A history of non-performance in fulfilling construction contracts. Temple City- Residential Accessibility Modifications Program Guidelines Page 25 of 34 5. A history of contract performance judged unacceptable by Program staff due to poor work quality, lack of cooperation, or repeated conflicts with homeowners. 6. Abandoning a job, or repeated failure to complete contract work according to specified deadlines. 7. Conviction of a crime in connection with contract work, contract payment or any funds administered by the City. 8. Failure to respond to 3 bid requests and annual update of contractor's package. The decision to disqualify a contractor is authorized by the Community Development Director at the recommendation of the Program Staff. Disqualified contractors must be notified in writing within five (5) business days from the decision. A disqualified contractor may appeal the decision, in writing, within ten (10) days from receiving the written notification. The Community Development Director may consider any additional information the contractor provides and render a final decision within five (5) business days from the receipt of the appeal. Contractor Selection The homeowner is responsible for selecting a contractor for the project. The City's involvement in the contractor selection process is merely to provide guidance to the homeowner and answer pertinent questions. The City does not select the contractor on behalf of the homeowner. The lowest cost, most responsible contractor bidder will be selected to perform the construction provided that the bidder meets all requirements. The homeowner can either pay the difference (from the lowest bid) or negotiate with the bidder to the lowest bid amount. Once the homeowner has selected the contractor, the Program Staff must: 1. Have the homeowner sign the Selection of Contractor Statement, which indicates the specific contractor that was selected. 2. Verify that all contractor documentation is in file and current. 3. Notify the selected contractor, in writing, which must include a copy of the updated work - write -up, when applicable. 4. As a courtesy, notify all other bidders of the decision. Temple City — Residential Accessibility Modifications Program Guidelines Page 26 of 34 FINAL EVALUATION AND APPROVAL PROCEDURES Within five (5) business days from the contractor selection, the City's Housing Consultant must conduct a final evaluation of the file to ensure compliance of all Program requirements. This final evaluation includes a review of the following: 1. Review the Annual Income Certification Form to verify calculations are accurate. 2. Compare the income calculation on the certification against the income limit chart to verify that household is within the maximum income. 3. Verify that historic and environmental requirements were met and approved by LACDA staff. 4. Verify that LBP requirements were met, and that the Lead Hazard Review Sheet was completed. S. Review of property value. 6. Credit worthiness - a credit report is not required to determine eligibility for the Program. However, it is important for the Program Staff to verify that all senior liens on the subject property are paid current. The most recent mortgage statement or a verification of mortgage can be used to verify compliance. Verification of no late payments in the last twelve months is required. 7. Recommendation for approval or denial. 8. Upon completion of the final evaluation, the Housing Consultant must make a recommendation for grant action by completing the Request for Approval form. This form must reflect the information verified during the final evaluation, and the recommendation to approve or deny the grant application, and conditions of approval, when applicable. 9. File circulation for approval: Upon grant recommendation by Housing Consultant, the file must be forwarded to the Director for review and approval of the recommendation. 10. Approvals are good for 30 days, and legal grant documents must be executed prior to the 30 - day deadline. A time extension may be granted, on a case -by -case basis. 11. Denial: if eligibility is not established, the Housing Consultant must submit the file to the Director for review and concurrence of reasons for denial. If in agreement with the recommendation to deny the grant, the Director must sign the Request for Approval form, and return it to the Housing Consultant for proper filing. 12. Upon approval/denial, the file must be returned to the Housing Consultant, who must send a notification via regular mail, within three (3) business days from approval / denial date. Temple City— Residential Accessibility Modifications Program Guidelines Page 27 of 34 CONSTRUCTION MANAGEMENT PROCEDURES The Inspector is responsible for monitoring the construction activity of all projects. A. Pre -Construction Conference Prior to the start of the construction work and funding of the project, Housing Consultant must conduct a pre -construction conference with the homeowner and the selected contractor(s). The meeting must be held at the site. The purpose of the pre -construction conference is to review the roles and responsibilities of each party, review the work write-up, rehabilitation process, start date, payment schedule, date of completion, and other terms and requirements stipulated in the Agreement for Rehabilitation. The homeowner and the contractor must address any questions and concerns regarding the work to be performed. B. Agreement for Rehabilitation The homeowner and the selected contractor must execute an Agreement for Rehabilitation, which specifies the repairs and rehabilitation to be financed through the Program. The Agreement for Rehabilitation is a contract between the homeowner and the contractor and must be fully executed before rehabilitation work can begin and the contractor can be paid for his services under the Agreement. The Agreement must include the following: 1. The Agreement for Rehabilitation. 2. The Work Write Up / Contractor Bid and any drawings / plans, including amendments. 3. Notices to Owner regarding State Contractors Law. Additionally, the homeowner, the contractor and the City must execute a Three -Party Agreement/Disclaimer wherein the City requires that the contractor and homeowner comply with all standard CDBG regulations. C. Notice to Proceed Contractors are authorized to begin the home repairs when they receive a Notice to Proceed. Any work a contractor completes before receipt of a Notice to Proceed is ineligible for payment. Rehabilitation work must commence within ten (10) calendar days of authorization by Notice to Proceed. If the contractor needs additional days to order materials or items that will be used in the rehabilitation, a start date must be agreed upon between the contractor and homeowner in writing. The revised start date must be provided to the City's Housing Consultant for the file. Temple City— Residential Accessibility Modifications Program Guidelines Page 28 of 34 D. Building Permits Prior to the start of construction, the contractor must procure the appropriate building permits, as required. Work that requires building permits, but completed without the benefit of permits, will not be honored. The contractor must comply with permit requirements in order to receive payment for work completed. E. Contractor Payment Schedule 1. Payment schedule: For grant contracts, contractors are eligible to receive up to three (3) progress payments. Only completed, inspected, and approved work, is eligible for payment. Contractor must submit an unaltered original invoice for payment. Payments are made for the amount of the satisfactorily completed work. The contractor will be paid for the approved scope of work, as identified in the Agreement. 2. Payment Process: The contractor must call the Program Staff for a progress inspection and request payment. Any change in the scope of work must be approved in advance in writing by the City, homeowner and contractor. 3. Ninety percent (90%) of the contract amount is distributed to the contractor in the form of progress payments during construction. The standard payment schedule releases payments at 10% of completion, 40% of completion, 70% of completion, and 100% of completion. The payment schedule may vary on a case -by -case basis. 4. The final ten percent (10%) of the contract amount is set aside as a retention payment. The 10% retention is released 30 days after the completion date indicated on the Notice of Completion, and the project has been thoroughly and satisfactorily completed. The contractor may request the release of the retained payment by following the same process used for progress payments, subject to the following: 5. Lien releases have been submitted by contractor, all subcontractors, materials suppliers, and laborers. 6. No liens or notice of intent to file a lien have been received by the homeowner or the City of Temple City. 7. Copies of final permits and final inspection certificates from the Building Department have been submitted by the contractor. 8. Copies of all warranties and manufacturers' instructions have been provided to the owner. Temple City— Residential Accessibility Modifications Program Guidelines Page 29 of 34 9. The City's Housing Consultant must verify the work completed to ensure compliance with the Agreement for Rehabilitation and Building requirements. A copy of the payment request and check must be maintained in the master file. The payment request must be signed by all parties and must include contractor invoices and any other supporting documentation, as appropriate. 10. The Administrative Services Department must review the Transmittal of Invoice for Payment to ensure it is signed by all parties and includes all supporting documentation. A supporting documentation checklist for any RAMP Transmittal of Invoice for Payment will accompany all contractor invoices for payment to be reviewed and approved by Home Improvement Program staff and Administrative Services Department Staff. 11. Contractor invoices processed for payment are marked "Paid" by the Administrative Services Department to prevent duplicate payments being made to the contractor. F. Progress Inspections The City's Housing Consultant must monitor the work performed during field inspections conducted on a regular basis. The City's Housing Consultant must visit the job site regularly in order to check the scope of work, inspect materials, and to confirm the job is on schedule and within budget. The City's Housing Consultant must review the work status with the homeowner and with the contractor in order to remedy any developing problems quickly and to ensure that both are satisfied with the construction process. The Program Staff Inspector must refer to original work write-up, plans and specifications to verify the work was completed as contracted. G. Lead Monitoring If the project has lead paint hazards, the contractor must provide documentation of lead paint training for each person to be working on the project. Lead hazard worker certifications are not necessary if the project does not have lead paint (built after 1978 or tested negative for lead paint), or the project is cleared of lead hazards by a certified lead inspector, and the work to be performed will not create additional lead hazards. H. Final lnspection When the project is completed, the City's Housing Consultant inspects the rehabilitation work item by item from the detailed scope of work with the homeowner and the contractor. A "punch list" of any corrections or deficiencies must be prepared and issued to the contractor for correction. The final inspection must be approved by the City's Housing Consultant, Building Inspector, and signed off by the homeowner and maintained in the project file. Temple City— Residential Accessibility Modifications Program Guidelines Page 30 of 34 I. Final Payment In order to process the final payment, the contractor must submit to the City an invoice for the amount due and a final payment request signed by homeowner. J. Notice of Completion The final ten percent (10%) retention payment is released 30 days after the recording of the Notice of Completion provided that no liens were filed. K. Warranties Contractors must comply with State law regarding all labor and material warranties. Contractors must warrant that all rehabilitation work meets the accepted standards of the trade and are free from defects. Contractor must warrant that any defects, which are found within twelve (12) months from the date of completion, must be repaired or replaced, at Contractors option and at no expense to Property Owner. Contractor must provide to the homeowner commercially reasonable written warranties and guaranties from its subcontractors and suppliers to the extent that they are obtainable in the ordinary course of business. Contractor must give homeowner a reasonable opportunity to purchase any additional or extended warranties available for purchase from subcontractors or material suppliers. L. Termite / Fumigation The City's Housing Consultant must coordinate termite fumigation with homeowner, Termite Company, and the general contractor (as necessary). M. Change Orders Written change orders are required when the homeowner requests any changes to the work write-up, such as eliminating an item completely, eliminating one item and substituting another, or adding items. The change orders must state the change and dollar value for the change. The change orders must be signed by both the contractor and the homeowner, and submitted to the City for approval. If the change orders exceed the approved financing, the homeowner must contribute funds toward the project, or request for additional funds through the Program, subject to availability, eligibility, and City approval. A grant may also be approved on a case -by - case basis for the funding of unforeseen necessary repairs. N. Grievances Between Homeowner and Contractor Any controversy arising out of or relating to Agreement for Rehabilitation, or the breach thereof, must be submitted to binding arbitration in accordance with the provisions of the California Arbitration Law, Code of Civil Procedure 1280 et seq., and the Rules of the American Arbitration Temple City— Residential Accessibility Modifications Program Guidelines Page 31 of 34 Association. The arbitrator will have the final authority to order work performed, to order the payment from one party to another, and to order who must bear the costs of arbitration. Costs to initiate arbitration are to be paid by the party seeking arbitration. Notwithstanding, the party prevailing in any arbitration proceeding may be entitled to recover from the other all attorney's fees and costs of arbitration. 0. Delays A delay is a failure to meet the timetable allotted in the Construction Contract. The Rehabilitation Specialist is responsible for detecting, monitoring and devising corrective action for delinquencies. P. Termination of Agreement for Rehabilitation The homeowner and the contractor have the right to terminate the Agreement for Rehabilitation upon a three (3) days' written notice. In the event of such termination, contractor is entitled to payment for all work done through and including the effective date of such termination. Such termination is effective on the date such notice is personally served, or forty-eight (48) hours after deposit of same in the custody of the United States Postal Service, as reflected by the official U.S. postmark. Q. Contractor Substitution Upon a termination of Agreement between the homeowner and the contractor, the homeowner has the option to select another qualified contractor to complete the project. The substitution of contractor must be done once a settlement with the original contractor has been reached. The new contractor must meet all contractor requirements prior to taking over the project. Temple City— Residential Accessibility Modifications Program Guidelines Page 32 of 34 Household Income Limits for 2022 2022 INCOME LIMITS Number of Persons Extremely Low -Income Low -Income Moderate -Income 1 $25,050 $41,700 $66,750 2 $28,600 $47,650 $76,250 3 $32,200 $53,600 $85,800 4 $35,750 $59,550 $95,300 5 $38,650 $64,350 $102,950 6 $41,500 $69,100 $110,550 7 $44,350 $73,850 $118,200 8 $47,200 $78,650 $125,800 *Please note that the 2022 median family income for Los Angeles County is $91,100. The household income limits are updated annually by HUD. Any updated household income limits will supersede the figures listed above. Temple City— Residential Accessibility Modifications Program Guidelines Page 33 of 34 ACKNOWLEDGEMENT I/We HEREBY CERTIFY that the aforementioned facts are true and correct. Furthermore, if approved, I/We will provide additional documentation and certification of the information provided on the application form prior to grant issuance. I/We will be liable for all costs incurred through the program if any information provided is determined to be false and/or incorrect which may have initially qualified me/us for the Residential Accessibility Modification Program. Date: Applicant's Signature Applicant's Name (Please Print) Date: Co -Applicant's Signature Co -Applicant's Name (Please Print) BELOW FOR OFFICE USE ONLY Date Submitted Received by Temple City — Residential Accessibility Modifications Program Guidelines Page 34 of 34