HomeMy Public PortalAboutA 2009-03-04 - CDBGAGENDA
COMMUNITY DEVELOPMENT BLOCK GRANT
ADVISORY BOARD COMMISSION
WEDNESDAY, MARCH 4, 2009
6:00 P.M.
LYNWOOD CITY HALL COUNCIL CHAMBERS
11330 BULLIS ROAD, LYNWOOD, CA 90262
Iris Pygatt, Chairperson
Antonio Mungua, Commissioner
Kim Battle, Commissioner
Patricia Carr, Vice Chairperson
Evelia Hernandez, Commissioner
OPENING CEREMONIES:
A. CALL T;,O ORDER
B. FLAG SALUTE
C. ROLL CALL
D. CERTIFICATION OF AGENDA POSTING
E. MINUTES -February 4, 2009
F. PUBLIC ORALS: (ITEMS ON AGENDA ONLY)
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FEB 2 6 2009
CITY OF LYNWOOCI
CITY CLERK6 OFFICE
Qh-~R.
G, NEW BUSINESS: Presentations by Service Providers ~,(.'~7~-
Requesfs/Proposals for Fiscal year 2009-10 CDBG and HOME funds ((~~
• Annette-Potts, CDBG Administration
• Josef Kekula, Public Works Department- Public Improvement Program
• Dr. Matthew Harris -Project Impact
• Yolanda Lopez, Program Director -Sunshine Daycare Computer Program
• Nancy De Lira from St. Francis Career College
• Juan and Grace Bautista, Kenjatsurya Karate Program
• Rita Maiibusan, Code Enforcement
• Other Program Proponents
• Ernie Nishi, Home Program and Section 108 Loan Repayment
H. HOME Program Status Report
I. STAFF ORALS
Special Meeting for Funding Selection -March 18, 2009 @ 6pm
J. BOARD ORALS
Lc.t i2Uf'vF~
GuD.
K. ADJOURNMENT
DATE: February 25, 2009
TO: CDBG Commission
FROM: Annette Potts, Deputy Director of Administration
SUBJECT: CDBG/HOME PROGRAM FUNDS FOR FY 2009-10
The Department of Housing and Urban Development (HUD) has not released
funding applications for fiscal year 2009-10, however CDBG funds have been
declining for the past several year. For fiscal year 2009-10, the City expects to
receive approximately $1,500,000 in CDBG funds and approximately $700,000 in
HOME program funds.
HUD regulations state that the amount of CDBG funds that may be used for
public services can not exceed 15 percent of the grant amount, which results in
approximately $225,000 for FY 2009-10.
HUD defines public services as services concerned with employment, crime
prevention, child care, health, drug abuse, education, fair housing counseling,
energy conservation, welfare. To be eligible for CDBG assistance, a public
service must be either a new service or a quantifiable increase in the level of an
existing service. Below is a CDBG five-year analysis of allocations.
Fiscal Year
HOME
Allocations
CDBG
Allocation 15% Public Service Allowance
(These amounts were made
available to Public Service
Providers)
2004-2005 696,933 1,922,634 288,395
2005-2006 668,108 1,819,754 272,963
2006-2007 285,319 1,635,674 245,351
2007-2008 280,281 1,628,231 244,234
2008-2009 603,578 1,568,954 235,000
If you should have any questions or need additional information, please call me
at extension 269.
Thank you.
MINUTES OF A REGULAR MEETING OF THE
COMMUNITY DEVELOPMENT BLOCK GRANT
ADVISORY BOARD COMMISSION
WEDNESDAY, FEBRUARY 4, 2009
CALL TO ORDER:
Chairperson Pygatt called the meeting to order on the above captioned date at 6:07
p.m.
FLAG SALUTE:
All those present participated
ROLL CALL:
Present
Chairperson Pygatt
Commissioner Carr
CERTIFICATION OF AGENDA POSTING:
Staff stated that the agenda was posted per the Brown Act.
APPROVAL OF THE MINUTES:
None
NEW BUSINESS:
1. Swearing In Of New Commissioners
Maria Quinonez, Lynwood City Clerk was in attendance to swear in Lynwood residents
that were appointed by Lynwood City Council, as new Commissioners. The following
residents were sworn in:
Ms. Kim Battle
Mr. Antonio Munguia
Ms. Evelia Hernandez
After the ceremony, Commissioners took appropriate seats.
2. Public Hearing-FY 2009-10 Housing and Community Development Needs
Motion to open the public hearing was made by Commissioner Carr, seconded by
Commissioner Munguia, motion carried unanimously. The public hearing was opened
at 6:11 p.m.
Ms. Potts explained to the Commission that this process occurs yearly and the
Commission will have an opportunity to hear from those requesting funding.
Commissioner Munguia asked if the Commission will have the opportunity to review the
applications for the request for funding. Staff replied yes and the information will be
submitted to the Commission prior to the next meeting.
Commissioner Carr requested an update on the guidelines for the Housing programs.
She requested that staff submit a summary on the fund balances, outstanding projects,
qualifications and guidelines for the program. Ms. Potts replied that the Housing
Manager would be requested to attend the next meeting to answer any questions that
the Commission may have.
Commissioner Carr stated that Ernie Nishi, Housing Manager should bring the
requested information with him to the next meeting.
There being no further comments from the public, motion to close the public hearing
was made by Commissioner Munguia, seconded by Commissioner Carr, motion carried
unanimously. The public hearing closed at 6:17 pm.
STAFF ORALS:
Staff welcomed Commissioners, Battle, Munguia and Hernandez to the Commission.
BOARD ORALS:
Commissioner Pygatt welcomed the new Commissioners and stated that she looks
forward to working with everyone.
Commissioner Carr welcomed the new Commissioners and stated that she looks
forward to working with everyone. She also stated that the CDBG Commission is a
good Commission and they would learn a lot relative to the HUD regulations and the
programs that the City offers through the federal government.
Commissioner Munguia thanked everyone for the welcome. He stated that he is looking
forward to working with the Commission and learning new things. He stated that he has
an open mind and will do his best as a Commissioner.
Commissioner Hernandez thanked everyone for the welcome. Commissioner Battle
also thanked everyone for the welcome.
ADJOURNMENT:
Motion to adjourn was made by Commissioner Carr, seconded by Commissioner Battle,
motion carried unanimously. The meeting adjourned at 6:25 pm to the next regularly
scheduled meeting.
Chairperson Date
March 17, 2009
Honorable Commission
APPROVED BY: Roger Haley, City Manager
PREPARED BY: Ernie Nishii, Housing Manager
Leaonna DeWitt, Sr. Rehabilitation pecialist
SUBJECT: STATUS OF THE HOME PROGRAM
Recommendation:
Staff recommends that the CDBG Committee receive and file the status of
HOME program.
Background:
For your review is a status report for the HOME Program for the current period
from July 1, 2008 to present. This report summarizes the overall program
allocations, expenditures and accomplishments.
The City receives an annual allocation from Housing and Urban Development
(HUD), for affordable housing activities. The City is allowed to spend up to 10%
of the allocation on administrative costs (salaries and benefits) and required to
set aside a minimum of 15% of its allocation towards a Community Housing
Development Organization (CHDO). The following chart provides a summary of
the total allocations received from fiscal year 2004 to present.
.~ Fiscal;t
Year'~~ '~ f, ~` ~ ~'
.,Annual Allocatioh',= ~'~
'~Ex ~enditures ~_ ,
_ Balance ~ , Expenditure v.,
~ . Deadlines ~ ~•
2004 696,933.00 572,094.00 124,839.00 Jul 31, 2009
2005 668,108.00 167,027.00 501,081.00 Jul 31, 2010
2006 285,319.00 71,329.00 213,990.00 Jul 31, 2011
2007 280,281.00 39,378.39 240,902.61 Jul 31, 2012
2008 603,578.00 - 603,578.00 Jul 31, 2013
.
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' 2,534;219!00' _,
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'. ".849,828:39
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1,684;390:61;
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Page 1 of 3
a
The City is on target with spending the balance of the FY 2004 allocation, FY
2005 allocation, and FY 2006 allocation and exceeding the minimum expenditure
requirements by July 31, 2009. These expenditures will bring needed
improvements to the housing stock of this City.
Since the beginning of this fiscal year, the City has expended over $1.3 million on
the various owner occupied rehabilitation projects and new construction
throughout the city. The Housing Rehabilitation Program has expended
$266,165 on needed repairs and correcting code violations and is on track for
spending an additional $300,000 by the end of the fiscal year. This is a highly
popular program and provides an immediate positive impact on tl~e community.
The Housing Rehabilitation Program is set forth in the attachment. This year the
program was amended to allow homeowners to apply a second time if the
homeowner had not taken full advantage of the program previously. The
amendment allows a qualifying household that had previously acquired a grant to
now acquire a loan or vice versa. The qualifying income is set forth in the
attached chart.
In a joint effort of the City of Lynwood, the Lynwood Redevelopment Agency and
Habitat for Humanity purchased a property located at 4237 Imperial Highway
expending over $1.1 million of HOME funds. This will be the first "green" project
funded with HOME funds in the City of Lynwood. This project will create 10 new
homes and a park for ten Lynwood families.
The City has also entered into an agreement with The Win Project to purchase
several bank owned properties, rehab the properties, and have said properties
re-occupied with Lynwood residents. This project will reduce the "empty" homes
in the community which can be magnets of blight. The City anticipates the
acquisition within the next month.
Similarly, Habitat has purchased two vacant properties located at 5525 Clark and
3076 Redwood utilizing HOME funds, rehabilitating said properties and re-selling
the properties at an affordable price to Lynwood residents. These projects will
supplement the City's efforts to acquire additional Neighborhood Stabilization
Program (NSP) funds to purchase more foreclosed homes for Lynwood
residents.
Below is a more comprehensive list of accomplishments occurring within the last
year utilizing primarily HOME funds. The chart identifies the property location,
amount of assistance and the status of the project. The City has made major
progress in expending HOME funds and creating affordable housing for Lynwood
residents.
Page 2 of 3
Accomplishments:
` ' < -' Location `
Housing Rehabilitation
City Wide
New Construction
3927 Louise Avenue
3254 Palm
4267 Fernwood Avenue
4237 Imperial Hwy
Acquisition & Rehabilitation
3250 Magnolia
3076 Redwood Avenue
5525 Clark Avenue
Total CHDO and Entitlement
'Amount ~ ~ . Status` ' . r ~ ..
$332,445 5 projects completed to date
$75,000
$497
694 Completed - FY 07/08
,
$391
108 DDA Approval March 17, 2009
,
$1,045,268 Complete-July 09
Ground Breaking June/July 09
$497,694
$201
295 Corplete
,
$201
295 Under Construction
, Rehab completed
799
Attached:
HOME Rehabilitation Program Guidelines
HOME Income Limits
Page 3 of 3
HOUSING REHABILITATION
PROGRA~/I
GUIDELINES AND PROCEDURES
Introduction
A• 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.
B. Description-of-Assistance
1. Technical Assistance
Program staff provides assistance to qualified applicants in:
loan counseling
code compliance
• property rehabilitation
preparation of cost estimates
preparing of bids and contracts
• selection of contractors
• construction monitoring
2. Financial Assistance
The Rehabilitation Program offers qualifying property owners financial
assistance in the form of Grants and Loans.
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
family'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 tire;
(6) Relocation payments made pursuant to federal, state, or local
relocation law;
(7) Foster child care payments;
(8) 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.
(b) Property taxes and assessment.
4
(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 by: fee simple
title, maintain a 99-year leasehold interest, ownership or membership in a
cooperative and do not have any restrictions or encumbrances that would unduly
restrict the good and marketable nature of the ownership interest.
"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 fatter, containing the consideration and method of
payment and any other terms and conditions necessary to accomplish the
stipulated property rehabilitation work.
5
4
"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.
6
ill. 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. If a Homeowner previously received a grant only, the
Homeowner may be eligible to apply for a loan.
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. Loans
o The loan is a zero percent 0% interest rate loan. The maximum loan
amount shall be $65,000 per applicant. One-third of the loan amount will
be applied to exterior improvements. The loan becomes due and payable
upon sale or transfer of the property by any means. Loan funds are
borrowed directly from the City to eligible property owners. All loans 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. If a Homeowner previously received a loan only,
the Homeowner may be eligible to apply for a grant.
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
The loan will be approved or disapproved by the Program staff. The City
will notify applicant of results. An applicant whose application for a loan
has been denied may appeal to the City Manager orhis/her designee for a
final decision.
An applicant who has been denied participation in the program has the
opportunity to appeal the decision to the City Manager or his/her
designee. The applicant must provide the following information:
Request an appeal in writing
7
Reason for the appeal
• List repairs needed
The applicant must submit the request within 30 days from the date of
the denial.
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 reasons
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
loan, 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 (loan)
Only those persons, who meet the Rehabilitation Program guidelines
pursuant to the provisions above, shall be granted the request.
K
IV. ELIGIBILTY-REQ EIVTS
This section sets forth eligibility requirements as to the property and the applicant
to obtain a Grant or Loan (loan).
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.
A drive-by appraisal will be performed to determine the after-rehabilitation
value. The property must not exceed the after-rehabilitation value set
forth by Housing and Urban Development of $433,200. This may be
modified based on current market conditions.
B. General Applicant Eligibility Requirements
To be eligible for a Grant or loan, the applicant must be income eligible.
The applicant must provide the following required documentation.
• Income documentation (check stubs, retirement etc.)
• Tax Returns (previous two years)
Bank Statements
• Grant Deed
• Property Tax Bill
• Mortgage Statement
Hazard Insurance
For a loan the applicant must demonstrate adequate ability to repay the
loan and be income eligible. The applicant must sign a certification
showing proof of owner occupancy status.
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 ~4ND DOST
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 the 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. The cost of repair and installation of alternative energy
conversation systems and weatherization when done in
conjunction with other rehabilitation work.
10
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.
ll
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.
An interest card will be delivered to the applicant. Upon return of the
interest card 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
o Verifying Program eligibility of the applicant.
Verify the applicant is owner of property to be improved.
o Verification of applicant's income and employment. Income
limits are published by Housing and Urban Development and
can be provided by program staff. In the event that the
applicant is self-employed, the income tax returns for the
previous two years will be obtained.
Verify property eligibility.
o Advise owner in writing of approval or disapproval.
3. Appeal Process
If an applicant is denied participation they may appeal to the City Manager
or his/her designee. The applicant must provide the following
documentation:
Request in writing stating the following:
1. Reason for the appeal
2. The types of repairs needed
3. Estimated cost for repairs
The applicant will then mail or submit the request to program staff. The
appeal will be processed and presented to the City Manager or his/her
designee for final approval.
12
4. 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.
5. 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.
6. 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.
7. 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.
8. Property Appraisal
A drive-by appraisal will be performed to determine the after-rehabilitation
value. The property must not exceed the after-rehabilitation value set
forth by the Housing and Urban Development of $433,200. Appeals will
only be accepted within six months from the time of denial.
9. 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 to 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
13
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.
9. 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.
10. Pre-construction Meeting
The Rehabilitation staff will conduct apre-construction meeting with the
homeowner and contractor to execute all documents.
11. Notice to Proceed
Property owners will be assisted by staff in issuing a Notice to Proceed for
the construction work.
12. 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:
. 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.
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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-Procurement
Programs. Contractors debarred by HUD are not eligible for participating
in the Program.
15
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. OTO~ER 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:
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.
e Electricity service becomes non-operable when make repairs to
wiring.
17
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.
o 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 requesting 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 designee.
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.
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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.
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.
m 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
19
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.
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.
20
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 (_ynwood 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 Safety 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.
O. 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
21
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.
Q. 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.
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G.S. DEPARTMENT OF EOD 02/2008
STFTE:CFLI EOdNL
__ _______ __________ __ 200E ADIO STED H0:9E IIJC OME LIMITS
__________
_________
PROGR.4i9 1 PERSON 2 PEREON 3 ?ERSOH 9 PERSON 5 PERSON c' PERSON 7 PERS OR" 8 PERSON
3a kersfie ld, CF IdSF
308 LIMITS i130C 12500 19550 16150 17550 18750 20056 21300
VERY LOW INCOME 18850 21500 21200 26900 29050 31200 33350 35500
608 LIMITS 22620 25800 29040 32280 398`00 37eg0 90020 92600
LOW INCOME 30156 54950 38750 93050 9`0500 95950 53960 55850
Chiro, CF MSF
308 LIMITS 11950 13100 19700 16350 17650 18950 20250 21600
VERY LOW INCCME 19100 21800 29550 27250 29950 31600 33800 35550
608 LIMNS 22920 26160 29960 32700 35390 37920 90560 <3190
LOW INCOME 30500 39900 35250 93600 97100 SG 600 59050 57550
El Centro, C.A MSA
368 LIMITS 11300 12900 19550 16150 17950 18750 20050 21300
VERY LOW ryCOME
60 18850 21500 29200 26900 29050 31200 33350 35500
8 LIMITS 22620 25800 25050 32260 39860 37940 90020 92600
LOW INCOME 30150 39950 38750 93050 96500 49950 53e 00 56850
Fr esro, CA MS.w
30% LIM i1'S 11300 12506 19550 16150 17450 18750 20050 21300
VERY LOW INCOME
6 18850 21500 29200 26500 29050 31200 33350 35500
08 LIMITS
^
' 22620 25800 24090 32280 3[860 37990 90020 42600
LO[
] INCOM
c 30150 34950 38750 93050 96500 99950 53900 56850
F.an£ortl-Corcoran, CE MS A
30£ LIMITS 31300 12560 19550 16150 17950 18750 20050 21300
VERY LOW INCOME 18850 21500 29200 26900 29050 31200 33350 35500
6Ga LIMITS 22620 25800 29090 32280 39860 37eg0 90020 92600
LOW INCOME 30150 39950 38750 93050 96500 99950 53900 5n85G
Los Angeles-Long Beach, C9 NOD Metro Ei9R Area
30s LIMITS 15950 18200 20500 22750 29550 26600 28200 30050
VERY LOW P1C0[4E 26550 30300 39100 37900 90950 53950 47000 SGOSC
608 LIMITS 31860 3'0360 90920 95480 99190 52790 56900 '
00`
0
LOW NCOME 92450 98500 59600 60650 65500 70350 75200 0
0
80050
Orange Ccunc}^, CA NOD M etro PMR Idea
308 LrMITS 19550 22300 25100 27500 30150 32350 39600 36850
VE3Y LGr] INCOME 32550 37200 91850 4`0500 50200 53950 57650 614 G0
608 LIMITS
T 35060 99690 50220 SSE00 60290 69790 69180 73680
LOW
_NCOniE 52100 59500 66956 74900 E0350 86300 92250 98200
Madera, CA MSA
308 LIi9IT5 11300 12900 19550 16150 17950 18750
20050
21300
VERY LOW INCOME 1fi 850 21500 29200 26900 25056 31200 33350 35500
~ 60€ LIMITS 22620 25800 29040 32280 39860 37990 90020 92600
LOW INCOME 30150 39450 38750 93050 96500 99950 53400 56850
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