HomeMy WebLinkAboutPR 17116: REVISIONS TO HOUSING REHABILITATION GUIDELINES INTEROFFICE MEMORANDUM
HOUSING & NEIGHBORHOOD REVITALIZATION
TO: JOHN A. COMEAUX, P.E., ACTING CITY MANAGER tM
FROM: MIKE MASON, DIRECTOR OF HOUSING & NEIGHBORHOOD REVITALIZATION
DATE: JUNE 5, 2012
RE: P.R. 17116 - REVISIONS TO HOUSING REHABILITATION PROGRAM GUIDELINES
RECOMMENDATION:
I recommend City Council adopt Proposed Resolution 17116 authorizing revisions to the City
of Port Arthur's Owner Occupied Housing Assistance Rehabilitation and Reconstruction
Program Guidelines.
BACKGROUND:
The City Council by authorization of Resolution Number 08 -370 has obligated the City to
provide owner - occupied rehabilitation assistance to qualified homeowners of the city. HOME
Program funds and Community Development Block Grant Program funds are allocated
annually to provide Emergency, Minor, Full Rehabilitation and Reconstruction activities in
accordance with 24 Code of Federal Regulations Part 92 and Part 570.
Due to the rising costs of general construction material, windstorm inspections and additional
insurance requirements, (Performance and Payment Bonds when applicable), and in an effort
to more effectively utilize the Housing Programs, it has been deemed necessary to revise the
Housing Assistance Rehabilitation and Reconstruction Program Guidelines.
The following summarizes revisions to the City's Owner Occupied Housing Assistance
Rehabilitation and Reconstruction Program Guidelines to be utilized on a case -by -case basis,
as recommended by the U.S. Department of Housing & Urban Development:
REHABILITATION /RECONSTRUCTION ACTIVITIES
Increase cost limits for reconstruction as listed:
• 2 bedroom, 2 bath home
o from $70,000 with a $3,000 floating cap;
o to $95,000, with a 5% contingency allowance
• 3 bedroom, three bath home
o from $75,000 with a $3,000 floating cap;
o to $100,000 with a 5% contingency allowance
• 4 bedroom, 2 bath home
o from $93,000 with a $3,000 floating cap
o to $120,000 with a 5% contingency allowance; and,
• Allow 100% Deferred Forgiveable Loan for clients at 61% of the Area Median
Income for Jefferson County; and,
• Incorporate the new 24 Code of Federal Regulations 135.32(a) mandating
employment of low and moderate income persons and families.
BUDGETARY /FISCAL EFFECT:
No effect
STAFFING /EMPLOYEE EFFECT:
No effect
SUMMARY:
I recommend the approval of Proposed Resolution 17116 authorizing revisions to the City of
Port Arthur's Housing Assistance Rehabilitation Program Guidelines. These revisions will
enable the Housing Assistance Staff to better utilize available funds and stabilize the City's
deteriorating owner - occupied housing stock.
P. R. 17116
6/5 /2012 - -MM /Housing
RESOLUTION NUMBER
A RESOLUTION AUTHORIZING REVISIONS TO THE CITY'S
OWNER OCCUPIED HOUSING ASSISTANCE REHABILITATION AND
RECONSTRUCTION PROGRAM GUIDELINES.
WHEREAS, pursuant to the Housing and Urban Development Act of 1974 the
Housing and Urban Development awards annual HOME Program and Community Development
Block Grant Program funds to the City of Port Arthur for the primary benefit of low and
moderate income persons and families in accordance with 24 Code of Federal Regulations Part
92 and Part 570; and,
WHEREAS, the City Council, by its adoption of Resolution Number 12 -160,
(authorizing submission of the 2012 Action Plan) the City has obligated itself to provide owner
occupied rehabilitation and reconstruction assistance to low and moderate income
persons /families; and,
WHEREAS, it is now deemed necessary to revise the previous Emergency,
Minor, Full Rehabilitation and Reconstruction Program guidelines; and,
WHEREAS, the revisions are attached hereto in Exhibit "A "; and,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR:
Section 1. THAT the facts and opinions in the preamble are true and correct.
Section 2. THAT the Acting City Manager is hereby authorized to implement
the new guidelines that are attached hereto in substantially the same form as Exhibit "A ".
Section 3. THAT a copy of the caption of this Resolution be spread upon the
minutes of the City Council.
READ, ADOPTED AND APPROVED this day of
A.D., 2012 at a Regular Meeting of the City Council of the City
of Port Arthur, Texas by the following vote: AYES: MAYOR
COUNCILMEMBERS
NOES:
MAYOR, DELORIS "BOBBIE" PRINCE
ATTEST: APPROVED FOR AVAILABILITY OF
FUNDS:
SHERRI BELLARD, DEBORAH ECHOLS,
CITY SECRETARY DIRECTOR OF FINANCE
APPR VED OR FORM:
41,4■4/Adi
' I
VALECI TIZ - O/
CITY ATTORNEY
APPROVED FOR ADMINISTRATION:
JOHN A. COMEAUX, P.E.,
ACTING CITY MANAGER
_id i ! -f-%
MIKE MASON,
DIRECTOR OF HOUSING &
NEIGHBORHOOD REVITALIZATION
EXHIBIT "A"
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HOUSING ASSISTANCE PROGRAMS
OWNER OCCUPIED HOUSING REHABILITATION &
RECONSTRUCTION ACTIVITIES
•
"REBUILDING COMMUNITIES, ONE BLOCKA T A TIME"
1 A Revised June 2012
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TABLE OF CONTENTS
SECTION 1. PURPOSE OF THE PROGRAM 4
SECTION 2. DESIGNATED AUTHORITY 5
SECTION 3. ELIGIBILITY REQUIREMENTS FOR FINANCIAL ASSISTANCE/
SELECTION PROCEDURES 6
SECTION 4. ALLOWED PROGRAM EXPENSES 7
SECTION 5. FORMS OF ASSISTANCE AND MAXIMUM ASSISTANCE AMOUNTS 8
SECTION 6. EMERGENCY AND MINOR HOME REPAIR PROGRAMS 9
SECTION 7. MINOR HOME REPAIRS 10
SECTION 8. FULL REHABILITATION -BELOW MARKET LOAN /NO INTEREST
DERERRED LOAN PROGRAM 10
SECTION 9. PROGRAM STRUCTURE 11
SECTION 10. PROGRAM FEATURES 11
SECTION 11. UNDERWRITING 11
SECTION 12. HOUSING RECONSTRUCTION PROGRAM 12
SECTION 13. IMPLEMENTATION PROCESS 12
SECTION 14. REHOUSING AGREEMENT 13
SECTION 15. FEASIBILITY OF REHABILITATION 13
SECTION 16. MARKET ANALYSIS 14
SECTION 17. METHOD OF APPLICATION 14
SECTION 18. OWNER /CITY AGREEMENT 15
SECTION 19. PROPERTY REQUIREMENTS 15
SECTION 20. SELECTION OF CONTRACTORS 16
SECTION 21. CONTRACTORS QUALIFICATIONS 16
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SECTION 22. CONTRACTING 16
SECTION 23. INSPECTION OF REHABILITATION WORK 17
SECTION 24. PAYMENT PROCEDURES 17
SECTION 25. PROGRAM SPECIFIC REQUIREMENTS 18
SECTION 26. SECTION 3 REQUIREMENTS 20
SECTION 27. FORMS 22
SECTION 28. CONFLICT OF INTEREST 22
SECTION 29. GENERAL PROPERTY IMPROVEMENTS 23
SECTION 30. DELINQUENCY GUIDELINES 24
SECTION 31. DEFAULT GUIDELINES 25
SECTION 32. ENVIRONMENTAL CLEARANCE REQUIREMENTS 26
SECTION 33. CIVIL RIGHTS 26
SECTION 34. LEAD BASED PAINT 27
SECTION 35. ENVIRONMENTAL STANDARDS 27
SECTION 36. GRIEVANCE PROCEDURES 28
3 Revised June 2012
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CITY OF PORT ARTHUR
OWNER OCCUPIED HOUSING ASSISTANCE REHABILITATION AND
RECNOSTRUCTION PROGRAM
FOR SINGLE FAMILY /OWNER OCCUPIED STRUCTURES
FUNDING SOURCES: COMMUNITY DEVELOPMENT BLOCK GRANT
AND HOME PROGRAMS
Section 1. PURPOSE OF THE PROGRAM: National Objective Overview
A. The ultimate use of a project determines how its national objective will be
met. The national objective requirements are not met until after the project is
underway and there is sufficient documentation to ensure that the project is
consistent with the designated national objective.
B. Program rules state that in order to be eligible for funding, every Community
Development Block Grant (CDBG) and HOME funded activity must meet one of
the three (3) national objectives listed below:
A. Benefit to low -to moderate - income households;
B. Aid in the prevention or elimination of slums or blights; or
C. To meet a particular urgent need.
Low /Moderate Income (LMI)
The City of Port Arthur Housing Assistance Programs requires that all housing
assistance be provided under the Low /Moderate Income (LMI) national
objective.
Slum and Blight
The activity must be designed to eliminate specific conditions of blight or
physical decay located in a designated slum or blighted area.
The City. of Port Arthur, Texas acting by and through the Housing &
Neighborhood Revitalization Department will provide financial and technical
assistance to low- income homeowners residing in the City of Port Arthur in
accordance with 24 Code of Federal Regulations Part 92 and Part 570.
C. The purpose of the program is to assist low- income property owners in
maintaining their homes, eliminate housing code violations and upgrade
neighborhoods. Through this program the City will help to provide decent, safe
and sanitary housing for residents and promote a viable housing stock for the
future. Improvements made through this program will assist in bringing existing
substandard units into compliance with City of Port Arthur Housing Code, U. S.
Department of Housing and Urban Development Housing Quality Standards
and /or all applicable Housing Standards, locally adopted rehabilitation standards
and the City's construction specifications. The only exceptions not meeting all
standards will be in the case of emergency assistance repairs funded with CDBG
funds. When CDBG funds provides Emergency Assistance improvements to
alleviate immediate threats to the health and safety of the applicants, the entire
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structure needs not to be brought into compliance with all Federal, State and
9 p ,
Local Building Codes, applicable Housing Standards and the City's construction
specifications. While threats to health and safety caused by conditions in
structures will be alleviated by the emergency assistance whenever possible; the
program's primary focus will be to make repairs and improvements to houses
which, following rehabilitation, will contribute to the long term, structurally sound
housing stock of the city of Port Arthur; rather than to assit houses which will
continue to be substandard following the infusion of program funds.
1. The program will be operated in accordance with all
applicable rules and regulations of the City of Port Arthur,
the State of Texas and the U.S. Department of Housing and
Urban Development (HUD). Administrative procedures used
to implement the program will be added and modified to
meet any changes made to such rules and regulations of the
above entities, which may occur over time.
Section 2. DESIGNATED AUTHORITY
A. Administrative authority for implementation of the program will be based on the
Administrative Guidelines herewith as approved by the City Council of the City of
Port Arthur and will be administered in the office of the Housing and
Neighborhood Revitalization, hereinafter called the "Department ", under the
direction of the Director of Housing and Neighborhood Revitalization or his
designee.
B. The Director of Housing and Neighborhood Revitalization or his designee, will be
responsible for final approval of applicant eligibility, designation as eligible for
"emergency assistance ", and confirmation of eligibility of work elements proposed
to be undertaken.
C. The approval of the qualified contractor will be the responsibility of the
Purchasing and Housing & Neighborhood Revitalization Departments of the City of
Port Arthur.
D. The Department will notify the homeowner and selected contractor of the
approval of the bid and will establish a date for the signing of all applicable
documents. Prior to the signing of documents, a pre - rehabilitation meeting will be
held at the rehabilitation site. In attendance, shall be the city's Director of
Housing & Neighborhood Revitalization, the Housing Programs Administrator, the
Housing Inspector, the Loan Specialist, the selected Contractor and the
homeowner or their designee. At this time, each item of the work write -up,
house plans and elevations will be reviewed.
E. The Department and /or designated staff shall be responsible for carrying out the
following activities.
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1
1. Processing of applicants for assistance
2. Recommending applicant for program assistance
3. Identifying property deficiencies
4. Preparing property evaluations
5. Work write -ups and cost estimates
6. Assisting owners in soliciting of contractors
7. Preparing and awarding bid documents including but not
limited to developing plans and specifications
8. Implementing and maintaining construction specification
manual
9. Conducting pre -bid conferences and bid openings
10. Preparing contract documents and any other required forms
11. Conducting meetings to explain contract documents and
procedures to be followed
12. Issuing Notice to Proceed following request by homeowner
13. Inspecting work for compliance with contract for
certifications needed for progress and final payments
14. Authorizing of payment to contractor following City
inspection and homeowner approval
15. Inspection of request for change orders, initiating
written change orders and preparing for City Council review
and approval as required and
16. Managing and maintaining program records as required by
24 Code of Federal Regulations Part 92 HUD and public
relations efforts as needed to promote the program.
Section 3. ELIGIBILITY REQUIREMENTS FOR FINANCIAL ASSISTANCE /SELECTION
PROCEDURES
A. Participant Eligibility
The applicant must be an individual or family who owns and occupies a
residential unit. The applicant will be considered the owner if he or she is the
"owner on record" on the books at the County Courthouse. The applicant must
not be delinquent on property taxes.
Funds are intended to serve low and moderate - income residents who have no
other means of financing needed repairs and improvements. Any type of
assistance previously received from other interfaith based organizations or any
other entity will be considered and will not be duplicated. To qualify for
assistance, the income of the applicant cannot exceed 80% of the area median
family income, adjusted for family size as regulated annually by the U.S.
Department of Housing and Urban Development. Eligible program participants at
60% or below the Area Median Income, will receive assistance with 100%
deferment.
To be considered for 100% deferment, program participant must comply with
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the "forebearance clause" states the following:
1. The borrower must submit a letter of request informing the City of the
situation requiring special consideration and substantiate evidence of the
situation (medical bills, legal documents doctor's explanations, etc).
2. The applicant must comply with the criteria to qualify for housing assistance;
homeowner must continue to maintain homeowner insurance and complete
the affordability period as defined in the loan agreement.
B. On a case -by -case basis, extenuating circumstances, depending on the
applicant's financial ability, eligible program participants will be considered for a
100% deferment and 100% flexibility will be implemented after verification and
proper documentation is provided. All income, current and proposed, by any
person who resides in the structure will be counted towards total household
income.
Housing Assistance will be considered on a first come, first serve basis. Housing
Assistance will be provided on a one -time basis. The homeowner will be
responsible for any future maintenance and repair.
The income limits are adjusted and published by the U.S. Department of Housing
& Urban Development (HUD) annually & will be used to qualify applicants
requesting Housing Assistance. As of January 2012, the limits are as follows *:
Household Size Very Low Income Low Income
<50% Median Income <80% Median Income
1 $20,150 $32,200
2 $23,000 $36,800
3 $25,900 $41,400
4 $28,750 $46,000
5 $31,050 $49,700
6 $33,350 $53,400
7 $35,650 $57,050
8 $37,950 $60,750
* These guidelines change annually & will change every year.
Applicants will be selected by date of application from the applicant listing.
C. PROOF OF GOOD CREDIT.
To meet this requirement, the Housing and Neighborhood Revitalization Department
will request a credit report.
SECTION 4. ALLOWED PROGRAM EXPENSES
A. Funds will be used primarily to finance repairs or replacements of principal
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fixtures and components needed to bring the structure into substantial
compliance with City codes, HUD standards and locally adopted rehabilitation
standards, to eliminate conditions detrimental to health and safety of occupants,
as well as to provide for the more efficient use of energy in structures where
possible. General property improvements designed to improve the overall living
environment may also be allowed to a limited extent under the program.
C. A Property Rehabilitation Standard's Manual for the City of Port Arthur based
upon local housing code requirements, HUD Section 8 Housing Quality
Standards, applicable new requirements as published by HUD, and locally
adopted rehabilitation standards will be maintained. This manual will serve as a
basis on which City staff will make decisions as to eligibility of specific items for
funding under the program and will be used to ensure fairness and consistency
in developing work write -ups and cost estimates for individual properties. Only
items considered as eligible rehabilitation expenses by HUD will be included in
the manual. This will be used in conjunction with the Contractor's Performance
Manual for the program, which serves as the source book of specifications for
individual work elements in projects. This includes information as to the
minimum acceptable grades of fixtures and materials to be used, installation
procedures, etc.
Section 5. FORMS OF ASSISTANCE AND MAXIMUM ASSISTANCE AMOUNTS
A. The Housing Assistance Rehabilitation and Reconstruction Program funding will
be provided to eligible households for the following activities:
A. Emergency repair
B. Minor Repair
C. Rehabilitation
D. Demolition and Reconstruction or new construction
B. The major form of assistance will be to provide eligible homeowners with either a
no interest deferred payment forgivable loan and /or an amortized below market
rate loan. These loans will be made to pay for expenses necessary to bring the
structure into compliance with Federal, State and Local Codes and Section 8
Housing Quality Standards, whichever is more stringent, for energy
improvements and general property improvements as possible within program
limits. The loan shall not exceed $50,000, unless deemed necessary by the
Housing and Neighborhood Revitalization Department Staff. Such exceptions, in
extenuating conditions will be justified on a case -by -case basis and will be limited
to a $5,000 floating cap.
At the time of loan award, a lien will be placed upon the structure for applicable
periods of affordability. In the case of deferred forgivable loans, if the house is
sold or transferred before the lien period expires, the homeowner will receive
credit for every month spent in the house on a pro rata basis of 10% of contract
amount per year. The credit is subtracted from the total note amount that is
repaid to the City and designated for other eligible housing activities; the option
8 gni Revised June 2012
OPPORT4fiITV
of transferring ownership to an eligible low and moderate income family member
is available if the family member's income is verified at 60% or below of the
median family income for the remainder of the affordability period. In the event
a eligible family member's income is verified and is between 61% to 80% of the
median family income, the deferred loan becomes payable in full, or, based on
the loan schedule established based on gross income, loan repayments will be
required.
Minimum Lien period will be based upon the following HOME Affordability
Periods:
CDBG or HOME Length of Lien
Investment per Unit Period
$1,000 - $5,000 No lien filed
$5,001 - $14,999 5 years
$15,000 - $40,000 10 years
$40,001 & above 15 years
C. In the event that $50,000 is not sufficient to bring the entire property into
compliance with Federal, State and Local codes and the locally adopted Property
Standards, the applicant may be considered for the CDBG funded Minor Home
Repair and Emergency Assistance Program or the Home Reconstruction Program.
Under the CDBG funded Minor Home Repair Assistance Programs a maximum
loan of $10,000 is allowed to correct single or minor deficiencies, without
bringing unit fully up to code. Immediate dangers to health and safety qualify for
Emergency Assistance Program assistance not to exceed $5,000. No lien will be
placed.
Section 6. EMERGENCY AND MINOR HOME REPAIR PROGRAMS
A. Emergency and Minor Home Repair Assistance programs will be provided to
address a limited number of deficiencies, without bringing unit to full compliance
as to alleviate issues of health and safety such as:
1. Water Teaks
2. Unsafe plumbing conditions
3. Unsafe electrical hazards
4. Or alternatively repairs necessary to secure a structure from further
exposure and degradation caused by such things as exposure to the
elements.
B. Such repairs will not be designed to bring an entire structure into conformance
with any standard or code except to address and alleviate the immediate threat
to the health and safety of a household.
D. Emergency Assistance to eliminate specific hazards to health, sanitation and
safety of low- income persons will be provided up to $5,000, unless otherwise
deemed necessary by the Director of Housing & Neighborhood Revitalization
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and /or the Housing Programs Administrator. In extenuating circumstances, a
floating cap of $1,500 is allowed. Assistance will be provided in the form of a
grant. A lien will not be filed on the property, if repairs do not exceed $5,000.
The amount of the Emergency Assistance will be considered in all future requests
for Rehabilitation Assistance and will be subtracted from the base maximum
amount of assistance in computing feasibility under the regular Rehabilitation
Assistance.
E. The Director of Housing & Neighborhood Revitalization and /or the Housing
Programs Administrator or designee will review all applications for Emergency
Assistance and the decision of the review will be final. Assistance will be provided
to owner - occupants of residential structures on a case -by -case basis.
F. Applicants for assistance under the Emergency Program must meet the income
eligibility requirements of the regular Rehabilitation and Reconstruction Program.
The Director of Housing & Neighborhood Revitalization and /or the Housing
Programs Administrator will have the authority to waive prior verification of
eligibility in cases where an immediate danger to health, safety or sanitation
situation exists.
Section 7. MINOR HOME REPAIR PROGRAM
A. Minor Home Repair Assistance will be provided up to $10,000 (amount of
assistance to be determined by Director of Housing & Neighborhood
Revitalization and /or the Housing Administrator) based upon condition of
structure. In extenuating circumstances, a floating cap of 3,000 is allowed.
Assistance will be provided in the form of a grant and /or loan based on amount
of assistance as identified in the Loan Schedule. A lien will not be filed on the
property, if repairs do not exceed $5,000
B. The Director of Housing & Neighborhood Revitalization and /or the Housing
Programs Administrator will review all applications for Minor Home Repair
Assistance and the assistance will be final. Assistance will be provided to owner -
occupants of residential structures on a case -by -case basis.
C. Applicants for assistance under the Minor Home Repair Program must meet the
income eligibility requirements of the Rehabilitation & Reconstruction Program.
The Director of Housing & Neighborhood Revitalization and /or the Housing
Programs Administrator will have the authority to waive prior verification of
eligibility in cases where an immediate danger to health, safety or sanitation
exists.
Section 8. FULL REHABILITATION BELOW MARKET LOAN /NO INTEREST DEFERRED
LOAN PROGRAM
A. The Below Market Loan /No Interest Deferred Loan Programs is an outgrowth
of the previous Grant and Deferred Payment Forgivable Loan Programs. The
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program authorizes loans to eligible borrowers whose repayments together with
interest from a "Revolving Loan Fund" from which other Below Market Loan /No
Interest Deferred Loans will be made.
1. The program is in response to the increasing need to recapture federal funds.
2. The program is designed to assist in the elimination and prevention of slums
and blighted areas, to encourage property owners to upgrade and preserve
existing neighborhoods and rehabilitate private properties.
Section 9. Program Structure
A. Under this program, each eligible and approved applicant will receive a loan and /or
no interest - deferred loan for home rehabilitation using Community Development
Block Grant and HOME Program funds.
B. The City will contract with a local lending institute to service the loan. The loan will
be 3% interest bearing payment note. There will be a $4.00 per month service
charge to each loan recipient.
C. The loans will have scheduled payments. They are payment loans that will be
collected according to a monthly amortization schedule based on flexible terms. If
the property is sold or transferred before the loan is fully paid, the unamortized
portion of the loan will be due and payable immediately.
Section 10. Program Features:
A. Maximum loan amount: $50,000
B. Minimum loan amount: $1,000
C. Effective Interest Rate: 3%
D. Term: Flexible (15 year maximum)
E. Maximum income limit is 80% of the Median income adjusted for family size as
described by HUD annually. The income guidelines will be adjusted annually.
F. Applicants will qualify for an Below Market Rate /No Interest Deferred Payment
(BMR /NIDP) Loan according to the following Loan Schedule based on gross income:
G. When an eligible applicant's income is verified between 61% to 80% of the median
family income for Jefferson County, the applicant will be required to make
repayments as listed below:
Of 0% No Interest Deferred 3% Below Market
Median Income Payment Rate Loan
0 -30% 0% 0%
31 -40% 0% 0%
41 -50% 0% 0%
51 -60% 0% 0%
61 -70% 80% 20%
71 -80% 70% 30%
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Section 11. Underwriting
A. Housing expense ratio /total debt ratio. The maximum housing expense ratio is 30 %.
The total debt ratio cannot exceed 45 %.
B. Credit analysis.
C. Income limits.
D. Complete Homeowner's Certification Course.
Section 12. HOUSING RECONSTRUCTION PROGRAM
A. The Housing Reconstruction shall be defined as the demolition, removal and
disposal of an existing housing unit and the replacement of that unit on the same lot
with a unit that complies with the universal design features in new construction
established by §2306.514 Texas Government Code, energy standards as verified by
a RESCHECK certification, and the International Residential Codes, as required by
Subchapter G, Chapter 214 of Local Government Codes.
B. The Reconstruction Program will provide assistance for the voluntary
demolition and reconstruction of dilapidated structures. Structures must not be
feasible for rehabilitation to qualify. The cost of rehabilitation must exceed the cost
of replacement. Reconstruction of a housing unit shall be of a similar type structure.
C. The Housing Assistance Program staff will be responsible for processing
applicants, determining feasibility of rehabilitation, notifying applicant of eligibility
and rehousing options, preparing rehousing agreements, assisting applicant in
contractor selection process, inspecting new construction, initiating final inspections
for certificates of occupancy and maintaining records as required by HUD.
Section 13. Implementation Process
A. City currently maintains a list of applicants for housing Rehabilitation and
Reconstruction Program assistance where a determination has been made that the
structure is not feasible to rehabilitate to minimum standards under the City's
Housing Rehabilitation and Reconstruction Program.
B. Applicant is evaluated for reconstruction assistance. Staff processes applicant
under the same guidelines as the Rehabilitation and Reconstruction Program. The
assistance will be in the form of a combination Below Market Rate Loan and No
Interest Deferred Loan as identified in the Loan Schedule.
C. The amount of assistance for a two (2) bedroom unit shall not exceed
$95,000, with an allowance of 5% of the contract amount per location for
contingency, as determined necessary on a case by case basis; (fees for demolition,
site clearance and preparation are not included). Homes within the high flood plain
will be granted exception for consideration of requiring elevation certification;
additional costs will be allow on a case by case basis for elevations based on the
elevation survey as determined by the a professional Survey Company).
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D. The amount of assistance for a three (3) bedroom unit shall not exceed $99,000,
with an allowance of 5% of the contract amount per location for contingency, as
determined necessary on a case by case basis; (fees for demolition, site clearance
and preparation are not included). Homes within the high flood plain will be granted
exception for consideration of requiring elevation certification; additional costs will
be allow on a case by case basis for elevations based on the elevation survey as
determined by the a professional Survey Company).
E. The amount of assistance for a four (4) bedroom unit shall not exceed $120,000,
with an allowance of 5% of the contract amount per location for contingency, as
determined necessary on a case by case basis; (fees for demolition, site clearance
and preparation are not included). Homes within the high flood plain will be granted
exception for consideration of requiring elevation certification; additional costs will
be allow on a case by case basis for elevations based on the elevation survey as
determined by the a professional Survey Company).
F. Feasibility determination will be made following a detailed inspection of the property
by Housing Staff. This inspection includes completing a list of deficiencies that must
be corrected in order to bring the structure into compliance with Federal, State and
Local Codes and Locally Adopted Property Standards. Feasibility of rehabilitating
structures under established program limits will be determined by an assessment of
the estimated cost to correct all code violations or to remedy immediate threats to
health and safety.
G. The Housing Staff will provide assistance in soliciting bids and contractor contractual
compliance.
Section 14. REHOUSING AGREEMENT
A. Each applicant will sign a Rehousing Agreement with the City which
outlines the owner's and the City's responsibilities under the program. This
agreement establishes a date on which the owner agrees to vacate the present
structure, agrees to leave the required utilities active, agrees to let the contractor
demolish the structure, agrees to occupy replacement structure when complete and
also agrees that reconstruction is voluntary, therefore, temporary housing during
reconstruction is the homeowners responsibility.
B. Housing Assistance Staff will provide technical assistance to homeowners.
This assistance will include explaining the program and program procedures used to
process applicants request for assistance and assuring applicants understanding
program requirements, serving as a representative of the homeowner when
requested and dealing with the construction contractor. This technical assistance
may include referral of homeowner to social service agencies, etc., as appropriate.
Section 15. FEASIBILITY OF REHABILITATION
A. In addition to determining eligibility of the homeowner, the feasibility of
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rehabilitation and /or reconstruction of the property to minimum program standards
within identified program dollar limits will be made following a detailed inspection of
the property, completion of a list of deficiencies that must be corrected and a
preliminary cost estimate. Feasibility of the project will be determined by an
assessment of the estimated of costs needed to substantially correct all code
violations and to remedy immediate threats to health and safety. Feasibility will be
based upon the replacement cost for comparable units to meet needs. A list of all
structures determined to be unfeasible under the program will be maintained which
will serve as the waiting list for the Home Reconstruction Program.
B. If the feasibility analysis indicates a budget in excess of $50,000, based on the
estimate for rehabilitation and the applicant does not desire reconstruction, the
Director of Housing and Neighborhood Revitalization and /or the Housing Programs
Administrator or designee, shall provide in writing a determination to "walk away"
from the project after notifying the applicant in writing that the project is not
feasible and offering an explanation in writing.
C. Due to the funding limitation, the City reserves the right to close the application
season once objectives are met for the year and if funds become no longer available
for rehabilitation and reconstruction assistance, as not to provide un- realistic hope
to anyone applying for rehabilitation and /or reconstruction assistance.
Section 16. Market Analysis:
A. Upon completion of providing consideration of assistance to every applicant on the
Housing Assistance Rehabilitation and Reconstruction Waiting list, the following
process will be implemented one time per year for solicit of applicants to be served
with the annual HOME Program and Community Development Block Grant Program
funds:
1. The Rehabilitation and Reconstruction Program will be marketed
and is strongly committed to providing information in English,
Spanish and Vietnamese. Every effort will be made to make
applications available in English, Spanish and Vietnamese. An
interpreter of both Spanish and Vietnamese will be made available
to assist in the application process.
2. The Housing Programs Administrator or designee will take
measures to make the program accessible to all by advertising with
media outlets which provide unique access for persons who are
considered members of a protected class under the Fair Housing
Act including: Ethnic newspapers and /or media outlets.
3. The availability of the Program funds shall be publicized via
informational pamphlets, public notices and press releases in the
local newspapers and the government channel. Distribution will
also be to the local churches and other community organizations
and local broadcast media.
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Section 17. Method of Application
A. Applications will be accepted from interested households for at least 90 days, in a
year, or until a defined quota is met, in accordance with the annual funding
allocation.
B. All applications received will be dated stamped as they are received.
C. Applications will be reviewed for completeness in the order in which they are
received.
D. Applications will be screened for completeness and all required information related
the program eligibility requirements, including, but not limited to the employment,
income, assets and liabilities, will be verified.
E. The Director of Housing and Neighborhood Revitalization and /or the Housing
Programs Administrator, or designee and staff shall be responsible for determining
the eligibility of each applicant.
F. The final decision of the applicants eligibility shall be determined by the
Director of Housing and Neighborhood Revitalization and /or the Housing Programs
Administrator or designee.
Section 18. OWNER /CITY AGREEMENT
A. An Owner /City Agreement between the homeowner and the City of Port Arthur will
be required as part of each Below Market Rate Loan, (BMRL) /Deferred Loan made
under the program. This agreement will outline responsibilities of each and will
include provisions for the filing of a lien when appropriate. The City Manager, City
Attorney, City Secretary, Director of Housing and Neighborhood Revitalization and /or
the Housing Administrator will sign this agreement on behalf of the City.
Section 19. PROPERTY REQUIREMENTS
A. The property must be a single family dwelling located with in the City of Port Arthur.
B. The applicant must provide evidence of homeownership. The following will be
considered eligible forms of homeownership:
1. Warranty Deed
2. Fee simple Title
3. Contract for Deed is not eligible evidence of homeownership
4. After assistance is provided, the housing unit must remain in compliance with
Federal, State and Local Codes and the Locally Adopted Property Standards.
5. Newly constructed homes (including reconstructs) must meet:
6. Energy standards as verified by a RESCHECK certification. The certification
must be available in the administration file, prior to closing.
7. The International Residential Code as established by §2306.514 Texas
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Government Code, energy standards as verified by a RESCHECK certification,
and the International Residential Codes, as required by Subchapter G,
Chapter 214 of Local Government Codes.
8. Any housing unit built before 1978 must be inspected for hazards associated
with the presence of lead -based paint or may be presumed to have lead -
based paint hazards. Proof of notifications, work completed and clearance
examination must be available in the file.
Section 20. SELECTION OF CONTRACTORS (ALL PROGRAMS)
A. The City of Port Arthur will participate as an objective third party to the contractor
selection process. The City acts as an oversight or administrative agency only.
1. The bid process will be processed through the City of Port Arthur
Purchasing Department. The contract will be awarded directly to
the lowest responsible bidder, if bid meets cost reasonableness
parameters (10 -15% higher or lower than staff and /or
professional estimates).
B. A contract will not be awarded to the low bidder if that contractor has a
maximum of three (3) incomplete rehabilitation or reconstruction projects at the
time of the bid opening or if it has been determined that the contractor should
be rejected, due to non compliance with Local, State and Federal codes,
ordinances and regulations; i.e., no insurance or failure to perform, contractor
being listed with the Epls.gov, etc.
C. In all cases, documentation that bids were solicited and awarded competitively
will be maintained and in all cases contractors will be notified of bid results and
awards in writing.
Section 21. CONTRACTOR QUALIFICATION
A. The City will adopt qualifications and regulations with respect to contractor
qualifications and will maintain an active contractor list.
B. All work performed by the contractor will be required to be guaranteed for one
(1) year period following certificate of final inspection. The Housing programs
Administrator or designated staff member will be responsible for making
homeowners aware of this guarantee and will assist in enforcing this guarantee
should problems arise.
Section 22. CONTRACTING
A. Form of Contract — Rehabilitation work will be undertaken through a written
contract between a licensed contractor and the homeowner. Housing Assistance
staff will prepare the contract for signature by the contractor and the
homeowner. Approval by the City to fund improvements contained in the
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contract will be required in order for funding of the contract to be dispensed.
The signature of the Housing Programs Administrator on the contract document
will be evidence of City approval. The contract will consist of a single document
made up of the bid, general and specific terms of the contract, and specification
of work to be accomplished under the contract and a copy of the Owner -City
Agreement.
B. Change Order Procedure —
Except as specifically provided otherwise in contracts, any alterations, additions,
or deletions to the terms of contracts shall be by submission of requests for an
amendment hereto in writing, and must be submitted to Council for approval
before any alterations, additions, or deletions to the terms of contract can be
executed by both parties to the contract.
C. Changes in scope of work or to allow for cost increase /decrease or no cost
change required to pay the cost of repair and /or replacement of actual or
incipient code violations which were not observed or known at the time of the
preparation of the original contract must be submitted to City Council for
approval before any alterations, additions or deletions to the terms of this
contract can be executed by all parties to the contract.
Section 23. INSPECTION OF REHABILITATION WORK
A. Housing Assistance staff will have the responsibility for making inspections on
work being financed by the program. Staff will make inspections as necessary to
assure work is being completed according to the contract. Inspections will
always be made when progress payments are requested or when requests to
change or add to original scope of work are made either by the Contractor or
Homeowner. Additionally, inspectors will make periodical on -site inspections.
B. Upon adequate final inspection, the Housing Programs Administrator or
designated staff member will obtain a release of liens /lien waivers from each
subcontractor, general and if applicable, major supplier, whenever payment is
made. Contractor must also provide a copy of each warranty due to the
homeowner. Following this, a Notice of Completion will be issued and a final
payment minus 10% retainage will be authorized. All of retainage will be
returned 30 days following Notice of Completion unless problems have surfaced
which need to be resolved. The Housing Programs Administrator or designated
staff member will re- inspect the property 10 months after completion to see if
any defects have been identified so they can be corrected during the warranty
period.
C. Homeowners with warranty concerns should make a written request to the
contractor and forward a copy of this request to the City. The contractor will be
given 10 working days to remedy the concern. Any contractor unwilling to honor
their warranty will be considered a non - responsible contractor and will be taken
off the approved contractor list, until such time that the concerns are addressed.
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Section 24. Payment Procedure
For construction, payment will be made in three (3) phases:
A. Inspect the construction work in progress to ensure that such work is being
carried out in accordance with the terms of this AGREEMENT and the HOME
B. Program Regulations as delineated in 24 Code of Federal Regulations 92 and
the CONSTRUCTION SPECIFICATIONS attached hereto.
C. The City shall compensate the CONTRACTOR and implement CLOSEOUT
REQUIREMENTS as follows. Except as hereinafter provided, payment for the
Construction Contract will be made in progress payments.
1. Payment one (1) will be forty -five percent (45 %) of total contract amount if at
least fifty percent (50 %) of the work provided under this Contract has been
completed, inspected and accepted, less ten percent (10 %) held in retainage.
2. Payment two (2) will be forty -five percent (45 %) of total contract amount if at
least ninety percent (90 %) of the work provided under this Contract has been
completed, inspected and accepted, less ten percent (10 %) held in retainage.
3. Final payment will be the remaining ten percent (10 %) that was held in escrow.
This retainage will be held in escrow by the City for a maximum of thirty (30) days
after satisfactory completion, inspection and acceptance of the Contract to
guarantee the completion of work. Thirty (30) days after said completion,
inspection and acceptance, final payment shall be made in a lump sum or total
agreed price less the progress payment, if made, by check issued by the City of
Port Arthur and made payable to the CONTRACTOR for the satisfactory
completion, inspection and acceptance of the work, described herein.
Section 25. PROGRAM SPECIFIC REQUIREMENTS
Recapture Provision
Homes assisted with HOME Program and Community Development Block Grant funds
must satisfy the affordability requirements for a time no less than the applicable period
as indicated the table(s) that follow, beginning after a project has been completed in
accordance with 24 Code of Federal Regulations Part 92 and Part 570.
During the affordability period, the following rules related to the owners investment,
where applicable, and the HOME Program and Community Development Block Grant
Program funds are applicable:
• The dwelling assisted with the HOME and Community Development Block
Grant Funds subsidy will be the principal residence of the participant and will
not be rented or used for other purposes.
• The participant will not engage the property to obtain a mortgage, gift, sell or
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exchange the property without the written consent of the Municipality of the
City of Port Arthur, Texas.
• The Municipality will inspect the property to assure that the participant is in
compliance with these requirements during the affordability period of the
property.
• The non - compliance with the terms and condition mentioned in this provision
will obligate the participant to reimburse the total amount of the subsidy to the
Municipality.
• The affordability period of the property will be as follows, according to the
HOME Program Regulations 24 Code of Federal Regulations Part 92.254:
CDBG or HOME Length of Lien
Investment per Unit Period
$1,000 - $5,000 No lien fi led
$5,001 - $14,999 5 years
$15,000 - $40,000 10 years
$40,001 & above 15 years
• If the participant sells the property within the affordability periods and net
proceeds are sufficient to repay HOME Program Funds invested and
homeowner investment, the Municipality will recover the full amount of HOME
investment only. The participant will recover any amount for investments and
apply the following formula for distribution of surplus net proceeds.
Non compliance during Recapture amount of HOME Program and
affordability period Community Development Block Grant
Program Assistance
1 — 5 years Pro rata of 10% per year
6 -10 years Pro rata of10 %per year
11 — 15 ears Pro rata of 10% per year
Y P Y
If the participant sells, rent or vacate the property within any of the affordability periods,
but net proceeds are insufficient to repay HOME Program and Community Development
Block Grant funds and homeowner investment, the Municipality will allow the participant
to recover its whole investment before recapturing HOME investments.
Other requirements shall apply:
• The participants will pay up to $5,000 to cover the cost of legal service in case of
breaches of any of the terms and condition of this provision.
• The participant will allow that the HOME Program and Community Development
Block Grant subsidy constitute a second mortgage to their property.
• Specific documentation required to calculate HOME Program and Community
Development Block Grant net proceeds.
o Once the documentation is presented, the Municipality will determine the
amount of the recapture on a case -by -case basis.
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In addition to the recapture restrictions to be incorporated in the deed of sale and
promissory note, other provisions will be established to guarantee that the units remain
affordable for subsequent homeowners. These provisions include the following
considerations:
• A provision restricting refinancing and subsequent mortgages of the property,
without the written consent of the Municipality. Refinancing will be limited to
capital improvements without equity return. This restriction is necessary, as
refinancing with cash return will have the effect of reducing the profit at resale
thus violating the purpose of resale / recapture provisions. In addition, a higher
monthly payment after refinancing could represent a risk of foreclosure due to
income adjustments.
• A requirement that the property will be used as the principal residence of the
homeowner(s) will not be leased, converted, sold, donated, and permuted to
other such use without written consent of the Municipality.
The indebtedness evidence by the Note, and any other financial obligation which may
hereafter be imposed on borrower by the Lender, is subordinate to the indebtedness
evidence by a not payable to a senior lender ( "Senior Lien Holder"), which note is
secured by a first deed of trust (the "First Deed of Trust ") dated of even date therewith
encumbering certain real property located in Port Arthur, Texas (the "Property ").
In the implementation of the Homeownership Program, the Department will comply and
will require recipients to comply with the provisions of 24 CFR 92.217, Income targeting
Homeownership and 24 CFR 92.254, Qualifications as affordable housing
SECTION 26. SECTION 3 REQUIREMENTS
The City of Port Arthur's Housing & Neighborhood Revitalization Department will incorporate Section 3 in
its existing Procurement Policy and adopt a Section 3 Contracting Policy and Procedure to be included in
all procurements generated for use with HUD funding. The policy and procedures contain goal
requirements for awarding contracts to Section 3 Business Concerns.
All contractors /businesses will be required to seek Section 3 preference before submitting bids /proposals to
the City of Port Arthur's Purchasing Department & Housing & Neighborhood Revitalization Department and
will be required to complete certifications, as appropriate, as acknowledgement of the Section 3 contracting
and employment provisions required by this section. Such certifications shall be adequately supported with
appropriate documentation as referenced in the form.
Program Participant Responsibilities
• Written procedures governing notification to eligible residents about employment and
training opportunities generated by Section 3 covered assistance
24 CFR 135.32 (a) requires that HUD grantees must provide adequate notification to all potential
Section 3 eligible about possible Section 3 employment and training opportunities. The Housing
Division will certify Section 3 program participants who reside in the City of Port Arthur and who are
seeking preference in training and employment by completing and attaching adequate proof of
Section 3 eligibility, as required.
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• Whenever the City of Port Arthur holds a public hearing, whether for an Annual Action
Plan, CAPER, or Consolidated Plan, participants will be informed of the City's Section 3
efforts;
• All persons living in the City who meet the Section 3 eligibility guidelines can, by
appointment, visit with the Housing & Neighborhood Revitalization Director, Mike Mason
and the Purchasing Manager, Shawna Tubbs, to complete a job readiness assessment.
• Once this assessment is complete, the Housing & Neighborhood Revitalization Director,
Mike Mason and the Purchasing Manager, Shawna Tubbs, will determine if the individual
meets the eligibility requirements and is job ready.
• If the individual is deemed eligible for Section 3 participation and deemed not ready for
employment, a referral will be made to other agencies that are better equipped to address
the individual's needs, i.e., substance abuse providers, etc.
• The Section 3 job readiness component is a part of the City of Port Arthur's commitment to
provide economic opportunities and training to residents /eligible participants to become
gainfully employed.
• Twice a year, public housing residents will be notified of Section 3 possibilities for training
and employment in an insert mailed with their monthly rent statements. The Housing
Division will coordinate this marketing through the Division of Tenant Resources.
• Written procedures governing notification to Section 3 business concerns about
contracting opportunities generated by Section 3 covered assistance
24 CFR 135.32 (b) requires that HUD grantees must provide adequate notification to all potential
Section 3 business concerns about contract opportunities generated by Section 3 covered
assistance. The Housing Division will use the following methods to notify and contract with Section
3 business concerns when contracting opportunities exist.
• Whenever the Housing Division holds a public hearing, whether for an Annual Action, Plan,
CAPER, or Consolidated Plan, participants, including businesses and contractors, will be
informed of the City's Section 3 efforts;
• Advertise contracting opportunities via newspaper, mailings, posting notices that provide
general information about the work to be contracted and where to obtain additional
information.
• Whenever an existing HPD Contract is signed or renewed, all subrecipients and
contractors will receive copies of the HUD Section 3 brochure ( HUD - 1476 -FHEO Rev 2 )for
themselves and to distribute to subcontractors they might use.
• Provide written notice of contracting opportunities to all known Section 3 business
concerns. The written notice will be provided in sufficient time to enable business concerns
the opportunity to respond to the bid invitation.
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• Coordinate pre -bid meetings at which the Section 3 business concerns would be informed
of upcoming contracting opportunities in advance.
• Conduct workshops on Housing Division contracting procedures to include bonding,
insurance, and other pertinent requirements, in a timely manner in an effort to allow
Section 3 business concerns the opportunity to take advantage of any upcoming
contracting opportunities.
• Contact the City of Port Arthur's Business Development Department, business assistance
agencies, Minority and Women's Business Enterprise (M/WBE) contractor associations
and community organizations to inform them of contracting opportunities and to request
their assistance in identifying Section 3 businesses.
• Establish relationships with the Small Business Administration (SBA), Minority and
Women's Business Enterprise M/WBE association, Community Development
Corporations, and other sources as necessary to assist SPHA with educating and
mentoring residents with a desire to start their own businesses.
• Seek out referral sources in order to ensure job readiness for public housing residents
through on- the -job- training (OJT) and mentoring to obtain necessary skills that will transfer
into the external labor market.
• Develop resources or seek out training to assist residents interested in starting their own
businesses to learn to prepare contracts, prepare taxes, and obtain licenses, bonding, and
insurance.
• The establishment of and fulfillment of numerical goals for employment and training
opportunities for residents and contracting employees for Section 3 business concerns
Section 27. FORMS
A. The City Attorney, prior to their use in operation the program will approve all forms
used as part of the implementation of the program and which constitute legal
instruments, such as the contracts and legal documents.
Section 28. CONFLICT OF INTEREST
A. No member of the City Council and no other official, employee or agent of the city
government who exercise policy decision - making functions or responsibilities in
connection with the planning and implementation of the Housing Assistance
Program shall directly or indirectly benefit from the program, be eligible for the
program or have an interest in any contract, subcontract either for themselves or
those with whom they have an immediate family or business ties.
Section 29. GENERAL PROPERTY IMPROVEMENTS (GPI)
General property improvements may include but are not required and shall not exceed
20% of the total of the required repairs for code and incipient violations.
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1. Painting of walls, etc., not provided or corrected as part of rehabilitation.
2. Bathroom hardware requested by the homeowner that is in place prior to
rehabilitation. This may include mirrors, medicine cabinets, towel bars, toilet paper
holders, and soap dishes. Grab rails needed for handicapped occupants are not
considered as bathroom hardware as it applies to this section.
3. Closing in /and or adding moving interior doors, which are not absolutely necessary
for other essential rehabilitation.
4. Provision of additional shelves, closet space, etc., to increase storage space of the
occupants.
5. Landscaping, removal of dead trees not endangering the structure.
6. Additional of kitchen cabinets and food preparation areas in excess of minimum
standards.
7. Safety devices requested by the homeowner such as floodlights, etc., not required
under Minimum Rehabilitation Standards.
8. Doorbells
9. Installation of new and /or replacement of existing floor coverings when not cited as
a violation.
10. Upgrades of materials, which exceed the minimum grade and price established by
the City.
To the extent feasible, GPIs may be included in the approved bid amount. However,
should the amount needed to correct all required repairs exceed the amount of
assistance available, all GPI items will be removed and the cost reduced accordingly.
I I
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Section 30. DELINQUENCY GUIDELINES
Notices
10 Dav
After a 10 -day grace period, a late charge of $4.00 will be assessed to the account. At
this point, the Borrower can pay the total amount due or contact the Loan Service to
discuss any special considerations he /she might need to meet his /her payment
agreement.
30 Dav
After a 30 days delinquent period, if contact or payment has not been made, a letter
will be sent to the Borrower. The Loan Services will also call the Borrower to discuss
repayment.
60 and 90 Day
If there is no response after a 30 -day notice, a certified letter will be mailed, with a
return receipt requested and a call will be made to the Borrower at 60 and 90 days.
These contacts will express the importance of repayment, the possibility of default with
possible foreclosure on the loan. Beyond 90 days, the loan will be in default and
foreclosure on the property will be considered.
Not Sufficient Funds
Checks returned due to "Not Sufficient Funds" will automatically make the
Borrower's account delinquent, as the payment(s) will have to be reversed in the
Mortgage Service. To make the account current, a letter will be sent requesting the
Borrower to pay the original payment amount plus late charge and a $30.00 NSF charge
per check in the form of cash, money order or cashiers check.
Informal Payment Plan
If the Borrower is Tess than three payments behind, he /she can schedule an informal
payment plan with the Loan Service. An informal loan will allow the Borrower to pay as
needed to make the account current. Example: The Borrower can work out a plan to
make weekly or bi- weekly payments until the account is current. If after two months
the Borrower cannot make his /her account current then he /she has the option of
requesting forbearance.
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Section 31. DEFAULT GUIDELINES
Forbearance
Special consideration for a forbearance can be given if the Borrower has a situation with
extenuating circumstances that prevents the Borrower from being able to make
payments as stated in the contract. To have a situation considered, the Borrower
needs to contact the Loan Service and inform them verbally of the situation and provide
the following written information:
1.) A letter informing the Loan Service of the situation requiring special
consideration and;
2.) Substantiating evidence of the situation (medical bills, legal papers, etc.)
Housing Programs Administrator, Staff and Loan Services will review the request for
Forbearance. The recommendation will then be presented to the City Manager for final
approval.
Extended Repayment Agreement
An extended repayment agreement can be established to bring the Borrower out of
default /foreclosure. The Loan Service shall work out the terms of this agreement. Late
payments, interest due and late charges will be added to the current principal balance
of the loan and re- amortized to determine the new monthly payment amount and term.
This agreement will be signed by the borrower(s) and the City Manager and will
become the new loan agreement.
Foreclosure
If after three months (90 days) the Borrower has not responded to the delinquency
letters and calls and has not made a payment, the loan will be in default. The file will
be referred to Legal to begin foreclosure proceedings in accordance with the Texas
Property Code.
Summary
1
The goals of our programs are to provide decent, safe and sanitary housing and to
provide homeownership opportunities for low to moderate - income families and
individuals; not to repossess homes. Therefore, every effort possible will be made to
work out an agreement to keep the homeowners in their homes up the 90 -day default.
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Section 32. ENVIRONMENTAL CLEARANCE REQUIREMENTS
A. The City shall be responsible for providing all information, concerning HOME and
Community Development Block Grant Program funded projects, required for City to
meet its responsibilities for environmental review, decision making, and other action
which applies to City in accordance with and to the extent specified in 24 CFR, Part 58.
In accordance with 24 CFR 58.77(b), the City shall make all reasonable efforts in
handling inquiries and complaints from persons and agencies seeking redress in relation
to environmental reviews covered by approved certifications.
Section 33. CIVIL RIGHTS
The Fair Housing Act (42U.S.C. 3601 -20) and implementing regulations at 24
CFR part 10; Executive Order II063, as amended by Executive Order 11063, as
amended by Executive Order 12259 (3 CFR, 1958 -1963 Comp., 652 and 3CFR, 1980
Comp., p. 307) (Equal Opportunity in Housing and implementing regulations at 24 CFR,
Part 107; and title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d)
(Nondiscrimination on Federally Assisted Programs) and implementing regulations
issued at 24 CFR, Part 1;
Executive Order 11063, as amended by Executive Order 12259, and 24 CFR part
107, "Nondiscrimination and Equal Opportunity in Housing under Executive order 11063
or 24 CFR, Part 107 shall be a proper basis for the imposition of sanctions specified
in 24 CFR 107.60;
The prohibition against discrimination on the basis of age under the Age
Discrimination Act of 1975 (42 U.S.C. 6101 -07) and implementing regulations t 24 CFR,
Part 146, and the prohibitions against discrimination against handicapped individuals
under Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing
regulations at 24 CFR, Part 8;
The requirements of Executive Orders 1246 (3 CFR 1964 -65, Comp., p. 339)
(Equal Employment Opportunity) and the implementing regulations issued at 4I CFR,
Chapter 60.
The requirements of Executive Orders 11625 and 12432 (concerning Minority
Business Enterprise), and 12138 (concerning Women's Business Enterprise). Consistent
with HUD's responsibilities under these Orders, each applicant must make efforts to
encourage the use of minority and women's business enterprises in connection with
HOME funded activities. Each Contractor must prescribe procedures acceptable to the
State to establish activities to ensure the inclusion, to the maximum extent possible, of
minorities and women, and entities owned by minorities and women. The
Contractor /Subcontractor will be required to identify contracts which have been bid by
minority owned, women owned, and /or small disadvantaged businesses.
The Age Discrimination Act of 1975 (42 U.S.C., Section 6101 et seq.); Section
504 of the Rehabilitation Act of 1973 (29 U.S.C., Section 794) and "Nondiscrimination
26 Revised June 2012
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Based on Handicap in Federally- Assisted Programs and Activities of the Department of
Housing and Urban development ", 24 CFR, Part 8. By signing this contract, Contractor
understands and agrees that the activities funded herein shall be operated in
accordance with 24 CFR, Part 8; and the Architectural Barriers Act of 1968 (42 U.S.C.,
Section 4151 et. seq.), including the use of a telecommunications device for deaf
persons (TDDs) or equally effective communication system.
Section 34. LEAD -BASED PAINT
A. Title IV of the Lead -Based Paint Poisoning Prevention Act (42 U.S.C. Sec. 4831).
Section 35. ENVIRONMENTAL STANDARDS
A. Environmental Review Procedures for Title I Community Development Block
Grant Programs, 24 CFR Part 58, as amended in 47 Fed. Reg. 15750 (April 12,
1982);
National Historic Preservation Act of 1966 (16 U.S.C. Sec. 470 et seq.) and 40
CFR Parts 1500 -1508;
The National Historic Preservation Act of 1966 (16 U.S.C. Sec. 470 et seq.) as
amended; particularly Section 106 (16 U.S.C. Sec. 470f);
Executive Order 11593, Protection and Enhancement of the Cultural
Environment, May 13, 1971 (36 Fed. Reg. 8921), particularly Section 2(c);
The Reservoir Salvage Act of 1960 (16 U.S.C. Sec. 469 et seq.), particularly
Section 3 (16 U.S.C. Sec. 469a -1), as amended by the archeological; and Historic
Preservation Act of 1974;
Flood Disaster Protection Act of 1973, (42 U.S.C. Sec. 4001 et. seq.) as
amended, particularly Sections 102(a) and 202(a) (42 U.S.C. Sec. 4012a (a) and Sec.
4106(a);
Executive Order 11988, Floodplain Management, May 24, 1977 (42 Fed. Reg.
26951), particularly Section 2(and);
Executive Order 11990 Protection of Wetlands, May 24, 1977 (42 Fed. Reg. j
26961), particularly Section 2 and 5;
The Coastal Zone Management Act of 1972, (16 U.S.C. Sec. 1451 et seq.) as
amended, particularly Section 307(c) and (d) (16 U.S.C. Sec. 1456(c) and (d);
� J
The Safe Drinking Water Act of 1974, (42 U.S.C. Sec. 201, 300(f) et seq.), and
(21 U.S.C. Sec. 349) as amended, particularly Section 1424 (e) (42 U.S.C. Sec.
300h- 303(e);
27 1 Revised June 2012
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I 1
The Endangered Species Act of 1973, (16 U.S.C. Sec. 1531 et seq.) as amended,
particularly Section 7 (16 U.S.C. Sec. 1536));
The Wild and Scenic Rivers Act of 1968, (16 U.S.C. Sec. 1271 et seq.) as
amended, particularly Section 7(b) and (c) (16 U.S.C. Sec. 1278(b) and (c));
The Clean Air Act (41 U.S.C. Sec. 7401 et seq.) as amended, particularly Section
176(c) and (d) (42 U.S.C. Sec. 7506(c) and (d));
Farmlands Protection and Policy Act of 1981, (7 U.S.C. Sec. 4201 et. seq.) 24
CFR Part 51, Environmental Criteria and Standards.
28 Revised June 2012
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Section 36. GRIEVANCE PROCEDURE
City of Port Arthur Housing Assistance Programs
Any applicant or participant of services from the Housing & Neighborhood Revitalization
Department shall have the right to appeal any decision in the form of a grievance. This
appeal shall be made to the Housing & Neighborhood Revitalization Department,
provided such appeal is made within fifteen (15) days from the date the decision has
been rendered or the grievance occurred and /or became know to the applicant. If the
applicant /participant is not satisfied with the decision of the Administrator, he /she may
then appeal his or her grievance to the Department Director, pertaining to services
received or applied for. The procedure for filing a grievance is as follows:
1) The person(s) filing the grievance may either verbally or in writing request an
appointment with the Housing & Neighborhood Revitalization Department to present
the complaint. At this informal stage of the resolution process, the complaint may be
presented either in written form or verbally. It is the Department's intent to respond to
and resolve the complaint as practically & quickly as possible. A response to the
complaint should be made no later than 10 working days from the date of receipt.
2) Should the response by the Housing & Neighborhood Revitalization Department
or its designees not be satisfactory to the person(s) bringing the complaint, an appeal
may be made directly to the City Manager. At this stage of the resolution process, the
request for appeal and the complaint itself should be submitted in writing. The
complaint should fully describe the nature of the problem and contain all pertinent
information that may aid in understanding the scope of the problem. The Director of
Housing & Neighborhood Revitalization has option of meeting with the person(s)
involved before reaching a decision. A response to the complaint should be made as
expeditiously as practical, but no later than 10 working days from the date of receipt of
all written information provided or requested.
3) Should the response by the Director of Housing & Neighborhood Revitalization
not be satisfactory to the person(s) bringing the complaint, an appeal may be made
directly to the City Manager requesting review of the decision. The request for appeal
and review should be in writing. A response to the complaint should be made within
twenty (20) working days from receipt of the request for appeal to the City Manager.
No member, officer, agent or employee of the City of Port Arthur shall be personally
liable concerning any matters arising out of or in relation to, the commitment of the
Housing Assistance Programs funds with regard to feasibility or viability of the proposed
project.
No member of the governing body of the Administrator and no other official, employee,
or agent of the Administrator who exercises policy or decision - making functions or
responsibilities in connection with the planning and implementation of this Program
shall be eligible for rehabilitation assistance in accordance with 24 CFR Section 570.489
(h), "Conflict of Interest ".
29 Revised June 2012
EQUAL HOUSING
OPPORTUNITY
The following list identifies the names, addresses, and telephone numbers of the
persons to contact to file a grievance:
Mike Mason John A. Comeaux, P.E.
Director of Housing and Neighborhood Acting City Manager
Revitalization 444 4 Street
444 4 Street Port Arthur, Texas 77640
Port Arthur, Texas 77640 (409) 983 -8102
(409) 983 -8237
I (We), the undersigned, have read and understand the grievance procedure described
above which is to be used for the purpose of resolving any complaint relating to the
Housing Assistance Programs of the City of Port Arthur.
Applicant Date
Co- applicant Date
30 Revised June 2012
EQVAL MOVSIMG
OP P4 RTV MI TY
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