HomeMy WebLinkAboutRES 910268 - Housing Rehab Program Guide#
'IF -0 194 04-1 ,#In I U # 91#1W my
WHEREAS, the City Council of the City of Georgetown, Texas, has previously
approved the implementation of the Old Southwest Town Area Housing Rehabilitation
Project; and,
WHEREAS, the City Council of the City of Georgetown, Texas, has entered
into a contract with the Texas Department of Commerce (hereinafter "TDOC") to
receive grant funds for said project and to use said funds in accordance with
grant regulations; and,
WHEREAS, these Housing Rehabilitation Program Guidelines, attached as
Exhibit A, will help ensure compliance with TDOC Grant Regulations; and,
WHEREAS, the City Council of the City of Georgetown, Texas, has found thla
this action implements Housing Policy 1 of the Century Plan, and is not found .
be inconsistent or in conflict with any other Century Plan Poes, as requir 0
by Section 2.03 of the Administrative Chapter of the Policy Plan;
NW, THEREFORE, BE R
IT ESOLVED BY THE CITY COUNCIL OF THE CITY
GEORGETOWNO, TEXAS, THAT: I
The facts and recitations contained in the preamble of this resolution are
hereby found and declared to be true and correct, and are incorporated by
reference herein and expressly made a part hereof, as if copied verbatim.
The City Council authorizes the Mayor to execute and the City Secretary to
attest.
This resolution shall be effective immediately upon adoption.
Form Resolution
Page 1 of 2
THE CITY OF GEORGETOWN
xi
X/
W. tl H. 'do'nno-r-, 'Mayor
ATTE T'
Elizabeth Gray, C Secretary
-AS TO FORM. -
V RIM W1# If CAM VZINTUAMWMikr�% I I LAU�
HOUSING. RSL
Form Resolution No. Tn2L�__
Page 2 of 2
10.11
1991 Texas Community Development Program
Recommended Homeowner Rehabilitation Program Guidelinez-,
M
A. The City of Georgetown, Texas, may provide financial assistance to
those applicants of Georgetown who reside in the target areas
'lied in the 1990 Texas Community Development Program
speci
application as approved by the Texas Department of Commerce and who
meet the eligibility criteria specified herein.
B. The sole purpose of the financial assistance is to provide decent,
safe, and sanitary housing for low and moderate income residents by
the rehabation of existing structures to a condon which
brings the structure into compliance with HUD's Section 8 Housing
Quality Standards and the removal of blighting influences in the
community.
C. This program shall be operated in accordance with all applicable
rules and regulations of the City of Georgetown and the Texas
Department of Commerce (TDOC).
A. The Administrative Services Director of the Community Services
Division and the City Building Official shall be the designated
authorities to administer the rehabilitation components of the
program, i.e., to take applications, verify eligibility, prepare
work write -tips and cost estimates, bidding documents, and conduct
rehabilitation interim and final inspections. For the purposes of
this document, the Administrative Services Director shall be known
as the Housing Rehabilitation Coordinator.
10111M - , W42717*11 -
A. The applicant must be an individual or family who owns and occupies
a single family residential unit within the designated target area.
The applicant will be considered the owner if he/she:
1. Is the "owner of record" an the books at the County Court
House; or
2. Possesses a valid contract for deed which has been or may be
filed for record with the County Clerk's office and which
includes reasonable rights of redemption and quiet and
peaceful possession of the property; or
3. Possesses a life estate which has been, or may be,filed for
record at the County Clerk's office.
Copyright 2991 Gary R. Traylor & Associates. All rights reserved. Page I of 10
B. The owner -occupied must be located in the designated
target area as provided in the City's application and if located in
designated flood hazard area,•e• insurance must be in effect.
C. Since Community • *n- -• to serve low
and moderate income residents or hardship cases who have no other
means of financing repair or improvements, such funds shall not be
available to any owner -occupants who have substantial financial
resources available.
D. Owner must furnish evidence that the residence is Ensured with fire
and casualty insurance in an amount of at least twice the grant
amount.
E. To qualify for assistance, the income of the applicant shall not
exceed the HUD lection 8 income limits. All income by a family
member who resides in the dwelling unit of the applicant shall be
counted as part of the applicant's income.
�m er amil
1
2
licant'sgm _ 1 A 1!
$22,050 per year/$1,838 per month
$25,200 #! per month
r,8,350 per year/$29,363 per month
$31,500 per year/$2,62.5 per month
$33,450 " s per month
$35,450 per year/$2,954 per month
per . month
$39,400 per month
F. The applicant must be a United States Citizen.
livingG. A family is defined as a householder and one or more other persons
in the sit- household :: • are members of immediate
o -
family. Immediate family is considered to be parents and children.
H. Applicant must be a. resident of the City of Georgetown for at least
five years -
V. All property be paid on _ property •
of - grant, or _ property owner must have qualified for
received - tax deferral • _d under Section 06 of
Texas Property •d
J. No member of governing body of the City and no other official,
employee or agent of the City who exercises policy or decision-
making functions or responsibilities in connection with the planning
and implementation the Community Development Program shall be
eligible for rehabilitation assistance.
Copyright 1991 Gary R. Traylor & Associates. All rights reserved. Page 2 of 10
A. Rehabilitation funds shall be used only for those repairs and/or
replacements which are necessary to correct actual or incipient
violations of the building codes of the City of Georgetown, Texas,
or needed to bring the property into compliance with HUD's Section
8 Existing Quality Standards and Cost Effective Energy Measures.
B. All improvements must be physically attached to the property and be
permanent in nature.
C. Air conditioners, cook stoves, refrigerators, and other appliances
(excluding heating systems and hot water heaters) are nat eligible
items under this program.
D. All City building permit fees and inspection fees shall be waived by
the City; however, all permits and inspections will be obtained.
V- Maximum Grant ABsistance
A. When all quaLlif ications have been met by the applicant, he/she shall
be entitled to receive rehabilitation assistance in the amount
necessary to bring the property up to meet HUD's Section 8 Existing
Quality Standards as established by the low bid process; provided
the bid does not exceed $12,500.00 in grant funds. No applicant may
receive more than one rehabilitation grant under this program.
B. In the event $12,500.00 is not sufficient to bring the property tip
to meet HUD's Section 8 Existing Housing Quality Standards,
rehabilitation assistance will not be approved unless:
1. It is used in conjunction with an approved Section 504
Rehabilitation Loan from the Farmer's Home Administration.
2. The
•. places the necessary funds in escrow with the
City when the grant agreement is executed.
3. it is used in conjunction with an approved home improvement
loan from an area financial institution. A letter •
commitment from the financial • must be in hand when
the grant agreement is signed. Applicants have sixty (60)
days to secure additional financing or they will be rejected.
A. At the discretion of the City Manager, additional funding, not to
exceed $1,000.00 may be utilized to pay the cost of repair and/or
replacement of actual or incipient code violations which were not
observed and included in the original contract and commonly handled
through change orders. No change order(s) or cumulative change
orders shall be issued above $12,500.00 without City Council
approval. No change shall cause the total grant amount to exceed
$12,500.00 without Council action.
Copyright 1993 Gary R. Traylor & Associates. All rights reserved. Page 3 of 34
Example.- Termite infestation and damage
not discovered until repairs were begun.
Collapsed sewer lines not discovered until
roto -rooting was attempted.
VjI_ Selection of Applicants, Work Write -Ups, and Bidding
A. Applicants will only be accepted during and advertised application
period. Such application Period shall be advertised by public
notice in the local newspaper and by posting notices in the City
hall and prominent places frequented by potential recipients.
B. Upon receipt of the applications, they shall be screened for
completeness and all information related to employment, income, and
assets shall be verified in order to determine the applicant's
eligibility.
C. Upon completion of the applicant's eligibility (verification), each
application will then be rated according to a priority scoring
system as hereinafter established. The Rehabilitation Coordinator,
and the Chair -man of the Neighborhood Improvement Committee, also
known as the Georgetown Housing Rehabilitation Committee, will be
responsible for scoring the applications. All completed and
eligible applications will be rated against each other in order to
establish the order of priority for assistance.
D. After rating the applications, the Rehabtation Coordinator shall
conduct a property inspection of the highest rated applicants to
determine the specific items to be required or replaced to bring the
structure up to HUD's Section 8 Existing Housing Quality Standards
and Cost Effective Energy Measures and/or the City building codes.
This list of work items will constitute the work write-up for that
unit.
Work write-ups will only be required for the appropriate number of
applicants to deplete the available funds. After completing the
work write-ups for each of the highest rated applicants, the
Rehabilitation Coordinator shall then estimate the cost of the
proposed work, including labor and material costs, for each
structure. If the estimated cost does not exceed $12,500.00, bids
for such construction will be let. However, if the estimated cost
exceeds the $12,500.00 maximum, bids will not be let unless the
applicant agrees to pay for all costs above the $12,500.00.
Regardless, grants for rehabilitation assistance will only be
provided to the applicant for a maximum of $12.500.00 at the time of
bid award. Exceptions to this maximum grant will only be made if a
change order is necessitated during the actual construction process,
and then only subject to funds being available for this.
Applicants will be given the opportunity to accompany the
Rehabilitation Coordinator on the work write-up inspection in order
to discuss the proposed work items. When the work write-up has been
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completed and a cost estimate prepared, the Rehabilitation
Coordinator shall discuss the scope of work and the effect of the
cost estimate with the applicant. If the applicant agrees with the
scope of the work (as well as his/her responsibility regarding any
additional funding), the o
applicant shall then sign the final wrk
write-up, which shall then be utzed in the bidding process. The
Rehabilitation Coordinator shall agree not to omit any work items
that are necessary to bring the structure up to the minimum program
standards as previously established. If the applicant does not
agree •to pay for the additional cost over the maximum grant amount
of $12,500.00 then such application shall be deemed ineligible for
grant assistance and shall be classified as not feasible to
rehabilitate.
E. Upon completion of the work write-up(s), the Rehabilitation
Coordinator shall, on behalf of the applicants, solicit competitive
bids from general contractors for the proposed rehabilitation work.
The contractor submitting the lowest and most responsible bid for
each project may be awarded the work through City Council action;
provided, the contractor can meet the contractor requirements
established. However, should the applicant desire to have a
contractor different from the low bidder perform the work, the
applicant shall be required to pay for the difference in the low bid
and the bid of the contractor preferred by the applicant. The
applicant may nat select a contractor that did not bid on their work
write-up.
A. All eligible applicants will be rated on a scoring system in order
to establish the priority of funds. This rating process has been
designed to incorporate both the family and dwelling characteristics
of an applicant in order to establish a system which gives the most
needy persons higher priority over others. It is intended that
those characteristics which have traditionally created disadvantages
among certain groups of people, or by their nature limit their
financial resources, are given more emphasis, thereby allowing
applicants with those characteristics to receive greater points.
The maximum score is 100 points. Scoring shall be based on the
following factors:
1. I=Q=
If family income is between 0% and 60%
of income limits 15 points
If family income is between 619 and 80!
of income limits 10 points
If family income is between 81% and 100%
of income limits 5 points
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2.
Am 0f H
If Head of Household is 62 years of age
or older
15 points
If any member of household is fully dis-
abled or handicapped
15 points
If any member of household is partially
disabled or handicapped
10 points
4.
s; l d of UmsebD
If Head of Household is Single
15 points
5.
DW?Mdent Child=
If household has any dependent children
under the age of 5
15 points
If household has any dependent children
under the age of 12
10 points
If household has any dependent children
over the age of 12 but still in school
or college
5 points
6.
If 4 or more family members live in the
same household
15 points
7.
--'1'0z. rda Maintmance
If applicant has attempted to make any
housing improvements or keeps neat outside
appearance
10 points
If applicant keeps a neat and clean outside
appearance of the,home except that minor
maintenance is needed
5 points
If applicant has not attempted to keep up
the home, characterized by a lack of main-
tenance, the presence of junk and/or tall
weeds and grass
0 points
IX_ Contractor
Qualifications
In order to be eligible to participate in the construction work financed
under this housing rehabilitation Program, contractors must meet the
following minimum requirements:
A. The contractor must not be a debarred, suspended, or ineligible
contractor according to HUD's "Consolidated List of Debarred,
Suspended, and Ineligible Contractors" and the U. S. General
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Services Administration�s "Consolidated List of Debarred and
Suspended Contractors. " Verification of contractor eligibility
shall be obtained f rom the Texas Department of Commerce prior to
awarding any contact to the Contractor.
B. The contractor shall carry workers' compensation insurance,
automobile liability insurance, and unemployment insurance as
required by the State of Texas. Additionally, the contractor must
carry general liability and property damage insurance for
rehabilitation work done within the City in the amount of
$100,000/$50,000. This insurance must be applicable to construction
work done in the City and must be in effect during the contracted
period. Evidence of such insurance must be presented prior to the
execution of the contract.
C. The contractor must have submitted all contractor certifications
prior to execution of any contracts.
D. The contractor may be judged to be a non-responsive bidder if
his/her past performance on other rehabilitation in this program or
another City's program was not acceptable or was questionable.
E. A contractor shall be of good reputation,, financially sound, and
have adequate financial resources to carry out his/her work.
F. A contractor shall have prior experience in home repairs or
building. Such prior work experience must be verifiable.
X. Grant Award and Contracting Rehabilitation Work
A. The Rehabilitation Coordinator shall submit each eligible
application, in its numerical order of ranking, along with the
construction bids received for each structure to the City Council
for their consideration. The City Council shall either approve or
reject the construction bids, and if approvable, award a
rehabilitation grant in the amount established by the lowest and
most responsible bidder.
B. If the City Council awards the grant, the Rehabilitation Coordinator
shall execute a grant agreement between the City and the applicant
and a construction contract executed between the applicant homeowner
and the contractor awarded the bid. However, should the applicant
desire to have a contractor different from the low bidder perform
the work,the applicant shall be required to pay the difference i the
low bid and the bid of the contractor preferred by the applicant.
The applicant may not select a contractor that did not bid on their
work write-up- Such grant agreements and construction contracts
-24all be executed on forms approved by the City Attorney.
C. In the event a change order is necessary as determined by the City
Manager, the Rehabilitation Coordinator shall cause to have a change
order executed between the City, homeowner(s), an the contractor.
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However, in no event shall a change order, or cumulative change
orders, be executed without City Council action in an amount more
than $1,000. Additionally, no change order shall cause the total
grant amount to exceed $12,500 without City Council approval.
A. The City will assist the homeowner in ensuring that all contracted
work is completed and passes inspection prior to making any progress
or final payments. To accomplish this, the City will conduct
interim inspections as necessary, a final inspecti on upon completion
of all of the work, and a post inspection within 60-90 days after
final inspection.
B. All electrical work will be inspected by the City's electrical
inspector in accordance with the City's normal electrical inspection
requirements. electrical permits are required for all electrical
work. All electrical work must be performed by an electrician
approved and licensed in the City.
C. All plumbing work will be inspected by the City's plumbing inspector
in accordance with he City's normal plumbing inspection
requirements. Plumbing permits are required for all plumbing work.
All plumbing work must be performed by a master plumber approved to
do work in the City.
D. All building work will be inspected by the City's building inspector
in accordance with the City's normal building inspection
requirements. Building permits ar required for all applicable
construction work.
E. In addition to the inspections outlined above, the Rehabilitation
Coordinator shall conduct a final inspection of the structure upon
completion of the rehabilitation work when notified to do so by the
general contractor. The Rehabilitation Coordinator shall also
conduct any necessary interim inspections which may be required.
After all work has been completed to the satisfaction of the City's
building, electrical, and plumbing inspectors and the homeowner has
signed a release, the Rehabilitation Coordinator shall issue a
Certificate of Completion, provided, he is also satisfied with the
work and all the contracted work has been completed.
F. When final inspection determines that the rehabilitation work is
satisfactorily completed in accordance with the contract,the
Rehabilitation Coordinator shall obtain from the contractor an "All
Bills Paid Affidavit" and a "Release of Liens Form" from all
subcontractors and suppliers, copies of each warranty due the
applicant for the work, and the contractor's request for payment.
After receipt of these items, the Rehabilitation Coordinator shall
order a request for funds, and upon receipt of the funds, disburse
the funds to the contractor. I
Copyright 1991 Gary R. Traylor & Associates. All rights roomrvod. Page 8 of 10
The City shall retain 10% of the funds pending a supplemental
inspection in sixty (60) days. Following a satisfactory
supplemental inspection the retainage will be paid to the Contractor
seventy (70) days following the f inal inspection and the f irst
disbursement of funds.
G. Sixty (6 0) days after the f inal inspection has been made, the
Rehabilitation Coordinator shall conduct a post inspection of the
rehabilitated structure to ensure that all work is still holding up,
and is satisfactory. If any problems are identified in this post
inspection, the Rehabilitation Coordinator shall then notify the
contractor to come back and correct the same within a reasonable
amount of time, such as two weeks. Should the contractor fail to do
so, the City will not disburse the retainage, the homeowner may take
any necessary legal recourse and the contractor shall be barred from
performing any more rehabilitation work in the City. Also, should
the contractor be doing other rehabilitation work under this program
and fails to correct any warranty problems, no other payments shall
be made to him/her until such problems are corrected.
A. All work performed by the contractor shall be guaranteed for a
period of one year from poor or f aulty workmanship or materials.
Such warranty shall be stipulated in the construction contract
between the contractor and the homeowner. For a period of one year,
the homeowner may require the contractor to correct defects or
problems arising from his/her work under this contract.
A. The City shall maintain accurate files and records on the program
and on each applicant a required by the Texas Department of
Commerce. Such files shall be open for inspection as to
qualifications, bids,and awards.
A. The City Council shall have the right to change, modify, or revoke
all or any part of these guidelines by a majority vote of the
Council. However, the Texas Department of Commerce must be informed
of such changes and if the changes are substantial and not within
TDOC's requirements, TDOC shall have the final word on the issue.
B. The City shall have the right to waive the Section 8 Existing
Housing Quality Standard requirements or code violations providing
such waiver will not diminish marketability o the property, when
long-standing local acceptance is evident of topography or the
architecture of the structure make compliance unfeasible. Once
again, the Texas Department of Commerce shall be informed of this
action.
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