HomeMy WebLinkAboutPR 11685: HOUSING GUIDELINESTO:
From:
Date:
Steve F/l~g/bbons, C/ty Manager
Da/e Watson, D/rector of P/ann/ng and Grants Planagement 6g~J
Plonday, February 2~, 2002
P.R. l_~ 585-Rev/s/ons to Hous/ng Program Cu/de//nes
RECOM MEN DATION:
I recommend City Council adopt Proposed Resolution 11685 authorizing revisions to the
City of Port Arthur's Housing Assistance Program Guidelines.
BACKGROUND:
The City Council by authorization of Resolution Number 99-192 has obligated the City to
provide owner-occupied rehabilitation assistance to qualified homeowners of the city.
Community Development Block Grant and HOME funds have been allocated to provide
Minor Home Repair, Emergency Repair, Substantial Home Rehabilitation and
Reconstruction.
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 City Council has
implemented for Iow and moderate-income citizens of the community, it has been
deemed necessary to revise the Housing Assistance Programs Guidelines.
The following summarizes revisions in the Housing Assistance Program Guidelines to be
utilized on a case by case basis, as recommended by Melodee Humbert, HUD
Rehabilitation Specialist:
RECONSTRUCTION ACTIVITIES
[] Increase limit from $37,000 with a $2,000 floating cap; (fees for
demolition/clearance not included), to $48,000, with a $2,000 floating cap,
including fees for demolition/clearance.
(Housing Assistance Program Guidelines Page 15).
[] Liens will be placed on the property for a period of fifteen (15) years.
BUDGETARY/FISCAL EFFECT:
No effect
STAFFING/EMPLOYEE EFFECT:
No effect
SUMMARY:
I recommend the approval of Proposed Resolution #11685 Authorizing revisions to the
City of Port Arthur's Housing Assistance 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. 11685
February 25, 2002 ~- Housing/DW
RESOLUTION NUMBER
A RESOLUTION AUTHORIZING REVISIONS TO THE CITY'S
HOUSING ASSITANCE'PROGRAMS GUIDELINES.
WHEREAS, pursuant to the Housing and Urban Development Act of 1974 the
Housing and Urban Development awards annual Community Development Block Grant and
HOME funds to the City of Port Arthur for the primary benefit of iow and moderate income
persons; and,
WHEREAS, the City Council, by its adoption of Resolution Number 99-69,
(authorizing submission of a 2000 Consolidated Plan) the City has obligated itself to
provide owner occupied rehabilitation assistance to Iow and moderate income
persons/families; and,
WHEREAS, it is now deemed necessary to revise the previous Emergency
Repair, Minor Home Repair, Full Rehabilitation and Reconstruction Program guidelines;
and,
WHEREAS, the revisions are attached hereto as Exhibit "A"; and,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR:
THAT said revisions to the guidelines are necessary for the effective
implementation of the housing program; and,
THAT the City Manager is hereby authorized to implement the revisions that
are attached hereto; and,
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., 2002 at a Regular Meeting of the City Council of the City
of Port Arthur, Texas by the following vote: AYES: MAYOR
COUNCILMEMBERS
NOES:
MAYOR
ATTEST:
ACTING CiTY SECRETARY
APPROVED FOR FORM:
C~I-Y ATTORNEY
APPROVED FOR ADMINISTRATION:
C~TY MANAGER
APPROVED FOR AVA[LABILiTY OF
FUNDS: ~
DIRECTOR OF F[NANCE
DALE WATSON, DEPARTMENT DIRECTOR
CIT~ OF PORT ARTHUR
HOU£~G ASS]:$TANCE .PROGRAMS
OWNER OCCUPIED REHABILITATION &
,-~-~USING ~ECONSTRUCT,¥ON PROGPJ~MS
"R-~ £ ~££ DI/V G CO/~/~U/VITIES ~ OC/< BY BZ OCK~
02/25/2002
TABLE OF CONTENTR
I. PURPOSE OF THE PROGRAM ...............................................................
3
II. DESIGNATED AUTHORITY..
4
III. ELIGIBILITY REQUIREMENTS FOR FINANCIAL ASSISTANCE/
SELECTION PROCEDURES ................ .,.~.]] ........................................................
6
V. FORMS OF ASSISTANCE AND MAXIMUM ASSISTANCE AMOUNTS ...........
VI. EMERGENCY ASSISTANCE AND MINOR HOME REPAIR PROGRAM .........
10
VII. FULL REHABILITATION-BELOW MARKET LOAN/NO INTEREST
DERERRED LOAN PROGRAM ...........................................................................
12
VIII. HOUSING RECONSTRUCT]ON PROGRAM .................... ~ .......................... 14
IX, FEASIBILITY OF REHABILITATION ....................... f:.: ............................... 16
I lOUSING ASSISTANCE PI).OGI~.A.x, IS PAGE 1
XIII. CONTRACTING ......................... i ...............................................................
2O
XIV. INSPECTION OF REHABILITATION WORK ............................................... 21
XV. FORMS ....................................................................................................... 22
XVI. CONFLICT OF INTEREST..: ...................................................................... 22
GENERAL PROPERTY IMPROVEMENTS ...........................................................
23
DELINQUENCY GUIDELINES ............................................................................
DEFAULT GUIDELINES ......................................................................................
25
GRIEVANCE PROCEDURES .......................................... ;-...: ................................ 27
HOUSING ASSIS'I'ANCE I~i~.OGRAMS PAGE 2
CITY OF PORT ARTHUR
HOUSING REHABILITATION ASSISTANCE PROGRAM
FOR SINGLE FA. MILY'/OW. NER OCCUPIED STRUCTURES
FUNDING SOURCES: CDBG AND HOME
PURPOSE OF THE PROGRAM
A. The City of Port Arthur, Texas acting by and through the Housing
Assistance Division, will provide financial and technical assistance to Iow income
homeowners residing in the City of Port Arthur.
B. The purpose of the pro~i'~m is to assist iow-income property owners in
maintaining their homes, eliminate housing code violations and upgrade
neighborhoods. Through this program the City v~ill 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 locally adopted rehabilitation standards. 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 health and safety of the applicants, the entire
structure needs not to be brought into compliance with ail city Building Codes.
While threats to health and safety caused by conditions in structures will be
alleviated by the emergency assistance whenever possible; the proqram's
prima~ focus will be to make repairs and improvements to houses which,
I lOUSING ASSISTANCE PROGRAMS PAGE 3
II.
followinq rehabilitation, will contribute to the Ionq term, structurally sound
housinq stock of the city of Port A[tbur; rather than to assist houses which will
continue to be substandard followinq the infusion of proqram funds.
C. The program will be operated in accordance with ali 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 change§ made to such rul~'and regulations of the above entities, which
may occur over time.
DESIGNATED AUTHORITY
A. Administrative authority for implementation of the program will rest in the
office of the Housing Assistance Programs Administrator. This office will serve as
the approving office for ~ehabilitation program assistance, will attest to this
approval on rehabilitation contracts, and will authorize any required change
orders to the contract. Final approval for Emergency Assistance will also rest
with this office.
B. The office of the Housing Assistance Program Administrator will be
responsible for ,final approval of applicant eligibility, designation as eligible for
emergency assistance, confirmation of eligibility of .work elements proposed to be
undertaken, and approval of the qualified contractor.
C. The office df the Housing Programs Administrator will notify the
homeowner and selected contractor of the approval of the bid and will establish
I IOUSING ASSISTANCll PROGIL.~.MS PAGE 4
a date for the signing of all applicable documents. Prior to the signing of
documents, a pre-reha.bilitatio~ me.eting will be held at the rehabilitation site. Tn
attendance, shall be the city's Housing Tnspector, the homeowner and the
selected contractor. At this time, each item of the work write-up will be
reviewed.
D. The Housing Assistance Program Administrator or designated staff shall be
responsible for carrying out 'the following activities: 1. processing of applicants
for assistance, 2. recommendi'n~ 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, 6. preparing and
awarding bid documents including, but not limited to developing plans and
specifications, 7. implementing and maintaining construction specification
manual, 8. conducting.~)re-bid conferences and bid openings, 9. preparing
contract documents and any other required forms, 10. conducting meetings to
explain contract documents and procedures to be followed, l~_. issuing Notice to
Proceed following request by homeowner, 12. inspecting work for compliance
with contract for certifications needed for progress and finat payments, ~.3.
authorizing of payment to contractor following City inspection and homeowner
approval, 14. initiating change orders as required, and 15. maintaining
program records as required by HUD and public relations effo~s as needed to
promote the pro,ram.
1 lOUSING ASSI.cFi'ANCE PROGRAMS PAGE 5
III.
ELIGIBILITY REQUIREMENTS FOR FINANCIAL ASSISTANCE/SELECTION
PROCEDURES
A. 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 Qn record" on the books at the County Courthouse.
B. Funds are intended to serve Iow and moderate income residents who have
no other means of financing needed repairs and improvements. To qualify for
assistance, ~he income of the applicant cannot exceed 80% of the median
income, adjusted for family size as published by HUD. Ali income by any person
who resides in the structure will be counted towards total household income.
[lOUSING ASSI5'FANCE PII. OGIL~.MS PAGt'~ 6
As of .~anuary !999, these income limits are as follows (limits will be adjusted as
published by HUD):
Household Size Very Low Income Low Income
<50% Median Income <80% Median Income
1 15,100.00 24,200.00
2 17,300.00 27,650.00
3 19,450.00 31,100.00
4 21,600.00 34,550.00
5 23,350.00 37,300.00
6 25,050.00 40,100.00
7 26,800.00 42,850.00
8 28,500.00 45,600.00
Applicants will be selected by date of application from the applicant listing,
Proof of, good credit. To meet this requirement, the Housing Assistance
Division wili request -~ ....... ~-r~a~ ,-on~+, _ ~
1 lOUSING AS$1S'I'.',NCF, PII, OGIL~M$ PAGE 7
IV.
ALLOWABLE PROGRAM EXPENSES
A. Funds will be used primarily to finance repairs or replacements of principal
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 allov~l to a limited extent under the program.
B. A Property Rehabilitation Standard's Manual for the City of Port Arthur
based upon local housing code requirements, HUD Section 8 Housing Quality
Standards, 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 f4anual 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.
I IOC SING :\gSIS'I' \NCE ~ ?.OG L-~MS PAGE 8
FORMS OF ASSISTANCE AND MAXIMUM ASSISTANCE AMOUNTS
A. 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 tb
bring the structure into compliance with City codes and Section 8 Housing
Quality Standards,' whichever is stricter, for energy improvements and general
property improvements as possible under program limits. The loan should
not exceed $30,000, unless deemed necessary by the Housing Programs
Administrator. Such exceptions, in extenuating conditions will be justified on
a case-by-case basis and will be limited to a $2,000 floating cap. At the time
of loan award, a lien will be placed upon the structure for applicable period.
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. The credit is subtracted from the total note amount
that is repaid to the city and designated for the other housing activities.
Minimum Lien period will be based upon the following Home Affordability
Periods:
CDBG or HOME Length of Lien
Investment per Unit Period
$2,000-$5,000 No lien filed
$5,001-$14,999 5 years
$15,000-$40,000 I 10 years
$40,001 +Above 15 years
HOUSING ASSISTANCE PROGRAMS PAGE 9
VI.
B. in the event that,'$30,000 is not sufficient to bring the entire property into
compliance with City codes and .HUD standards, the applicant may be considered
for tile 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 fuily up to code. Immediate dangers to
health and ~afety qualify for E~rgency Assistance Program assistance not to
exceed $5,000. No lien will be placed.
EMERGENCY ASSISTANCE AND MI~NOR HOME REPAIR PROGRAMS
Emergency and Minor Home Repair Assistance programs will be provided
to address a limited number of deficiencies, without bringing unit to full
compliance; for example: roofs, electrical rewiring and plumbing. Assistance will
address to the extent necessary conditions that are code violations and/or
structural deficiencies.
A. Emergency Assistance Program
1. Emergency Assistance to eliminate specific hazards to health,
sanitatior~ and safety of low-income persons wi[I be provided up to
$5,000, unless deemed necessary by 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
HOUSING ASSI-C:I'ANCI'' PROGIL'~.MS PAG[:~ 10
exceed $5,000.
The amounlt 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 program.
The Housing Programs Administrator or his 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.
Applicants for assistance under the Emergenc~ Program must meet
the income eligibility requirements of the regular rehabilitation
program. The Housing Programs Administrator will have the
authorib/to'waive prior verification of eligibility in cases where an
immediate danger to health, safety or sanitation exists.
MINOR HOME REPAIR PROGRAM
1. Minor Home Repair Assistance will be provided up to $10,000
(amount of assistance to be determined by Housing Administrator)
based upon condition of structure. In extenuating circumstances, a
floating cap of $1,500 is allowed. Assistance will be provided in the
form 6f a grant and/or loan base'd'on amount of assistance. A lien
will not be filed on the property, if repairs do not exceed $5,000
IIOUSING ASSISTANCI~ PROGR.~\IS PAGE I 1
2. The amount of the Hinor Home Repair 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
program.
3. The Housing Programs Administrator or his designee will review all
applications for Hinor Home Repair 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.
4. Applicants for assistance under the Minor Home Repair Program
must meet the income eligibility requirements of the regular
rehabilitation program· The Housir~g Programs Administrator will
have the.authority to waive prior verification of eligibility in cases
where an immediate danger to health, safety or sanitation exists.
VII. FULL REH^BILFFAT~ON-BELOW MARKET LOAN/NO INTEREST DEFERRED LOAN
PROGRAM
The Below Market Loan/No Interest Deferred Loan Program is an outgrowth of
the previous Grant and Deferred Payment Forgivable Loan,Programs. The program
authorizes loans to eligible borrowers whose repayments together with interest form a
"Revolving Loan Fund" from which other Below Market Loan/No Interest Deferred Loans
will be made.
The program is in response to the increasing need to recapture federal funds.
IlOU$1NG ASSISTANCE PROGIL~.~I$ PAGI~ 12
The program is designed to assist in the elimination and prevention of slums and
blighted areas, to encourage pr6perb/owners to upgrade and preserve existing
neighborhoods and rehabilitate private properties.
,Proqram Structure
Under this program, each eligible and approved applicant will receive a
loan and/or no interest deferred loan for home rehabilitation using CDBG and
HOME funds.
The City will contract wit~'~ 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.
Tile 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 fuIly paid, the
unamortized portion of the loan will be due and payable immediately.
Proqram Features:
2.
3.
4.
5.
Maximum loan amount:
Minimum loan amount:
Effective Interest Rate:
Term:
$30,000
$ 2,000
3%
Flexible (20 year maximum)
Maximum income limit is 80% of the Median income adjusted for family
size as described by HUD. These guidelines will be adjusted annually.
Applicants will qualify for an BMR/NIDP Loan according to the following
schedule based on gross income:
I lOUSING ASSIS'FANCE PI~.OG R.AMS PAGE 13
% of Median income °/o NoTnterest Deferred Payment % Below Market Loan
0-30o/o ~_ !.00 °/o 0
31-40% 60% 40%
4:[-50% 50% 50%
51-60% 40% 60°/0
61-70O/o 300/0 70o/0
71-80°/o 200/0 800/0
Underwritinq
1. Housing expense ratio/total debt ratio. The maximum housing expense
ratio is 30%. The total debt ratio cannot exceed 45%.
2. Credit analysis.
3. Income limits.
4. Complete Homeowner's Certification Course.
VIII. HOUSING RECONSTRUCTION PROGRAM
The Housing 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.
A. The Housing Assistance Program staff wilI be r?sponsible for approval of
applicant eligibiliL-y for the program. This will be based upon the City's list of
houses ti~at il'ave been determined not to,be Feasible for rehabilitation under
the existing rehabilitation program.
I IOUS1NG ASSISTtNCE PROGRAMS PAGE 14
B. The Housing Assistance Program staff will be responsible for Processing
applicants, determining feasibility of rehabilitation, notifying appIicant of
rehousing options, preparing rehousing agreements, assisting applicant in
contractor selection profess, inspecting new construction, initiating final
inspections for certificates of occupancy and maintaining records as required
by HU'D.
C. Implementation Process
1. City maintains a list of applicants for housing rehabilitation 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 Program.
2. Applicant is evaluated for reconstruction assistance. Staff processes
applicant under the same guidelines as rehabiitation program. The
assistance will. be in the form of a combination Below Market Loan and
No Interest Deferred Loan. The amount of assistance is $48,000 with
a $2,000 floating cap.
3. 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 HUD and City Codes. 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
HOUSING ASSISTANCE PROGRAMS PAGE 15
remedy immediate threats to health and safety.
4. The Housing staff'will provide-.assistance in soliciting bids and contractor
contractual compliance.
D. Rehousing Agreement
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 let the contractor demolish the structure, agrees occupy
replacement structure when complete and also agrees that reconstruction is .'~
voluntary, therefore, temporary housing during reconstruction is their
responsibility.
E. Technical assistance will be provided by Housing Assistance S'~aff to :'
homeowners. This assistance will include explaining the program and procedures
used to process applicants, assistance in understanding program requirements
and serving as a representative of the homeowner when requested, in dealing
with the construction contractor. This technical assistance may include referral
of homeowner to social service agencies, etc., as appropriate.
IX. FEASIBILITY OF REHABILITATION
In addition to determining eligibility oF the homeowner, the feasibility of
rehabi!itation of the property to minimum program standards within program dollar
ilmits ~,,'~,~ ~e made fo[io,,ving a detailed inspection of the 'propers/, completion of a list of
deficiencies that must be corrected and a preliminary cost estimate. Feasibility of the
IIOUSING ASSIS'I'AXI:Ii PROGI~.AMS PAOli
project will be determined by an assessment of the estimate of costs needed to
substantially correct all code vidiatic~ns and.to remedy immediat~ threats to health and
safety. Feasibility will be based upon the replacement cost for comparable units to meet
needs. A list of ali structures determined to be infeasible under the program will be
maintained which will serve as the waiting list for the Home Reconstruction Program
waiting list.
X.
OWNER/CiTY AGREEMENT
An Owner/Ci[-y Agreement between the homeowner and the City of Port Arthur
will be required as part of each loan/grant made under the program. This agreement
will outline responsibilities of each and will include provisions for the filing of a lien when
appropriate. The Housing Administrator will sign this agreement on behalf of the City.
SELECT, ON 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.
B. The owner shall assume the primary responsibility of obtaining a
contractor to complete the rehabilitation work. Bids for projects may be
solicited and awarded using any of the following methods.
1. Owners may request that bids be formally solicited, by advertising
the project in the newspaper. Sealed bids will be required and the
City Housing Programs Administratoi- will conduct a full bid opening
process. No bid award will be made at this time. Prior to the
IIOUSING AS.q[STANCE PROGIL'kMS PAGE 17
award of any bid, City staff shall review all bids for completeness,
accuracy ~nd cost reasonableness.
2. Bids may be solicited, by the owner, from contractors on the City's
Approved Contractor list.
3: Owner may submit a bid from any contractor of their choosing
(such contractors must apply and meet City's qualifications for
contractors), if the 'chosen contractor cannot meet the City Approved
Contractor standards, the owner would have to obtain another contractor
or select an alternate, if more than one bid was obtained.
Under option 1, the bid process would be formally advertised and the
contract would be awarded directly to the lowest responsible bidder without
further hegotiations, if bid meets cost reasonableness parameters (10-15%"
higher or lower than staff estimate).
Under options 2 and 3, the owners would be required to submit to the
City the bid they wish to accept. 7-he City will then review the bid for
completeness and cost-reasonableness. If the bid amount is within the
established cost-reasonableness parameters, as determined by the City (within
10% above or below the staff cost estimate) the bid is considered to be cost-
reasonable and can be awarded.
If the bid selected falls outs/de of the above parameters, under options 2
and 3, the owner and the contractor, w/th asSifftance from the City's sta~ would
meet to review, and discuss the individual line-item amounts. If the discussions
IIOUSING :\S$1STANCI': PROGRAMS PAGE 18
over the excess cost is not reso/ve~ the owner would have two options: (1)
reject the bid and obtain another br select an alternate bid or (2) pay the
difference between the final City staff cost-est/mate and the amount of the
selected contractor's bid.
This process places the majority of the responsibility for rehabil/tat/o.n
directly on the owners as they become actively involved in the contractor
select/on process. Corollary benefits to this process are that there should be
significant improvement in the contractor's performance and an expansion o? the
City's base o? e//g/b/e contractors. In add/t/on, by a/lowing the owner to assume
his/her ownership responsibilities in this process~ they realize that they have both
input and follow-up obligations for the work' being done in their homes. This
process can a/so significantly reduce the number of complaints received. As an
indirect observer to the'contract, the City's I/ability under this system/s generally
reduced.
C. A contract will not be awarded to the Iow bidder ii' that contractor has a
maximum of three (3) incomplete rehabilitation jobs at the time of the bid
openin9 or is it has been determined that the contra~or shouId be rejected; i.e.,
no insurance or failure to pe~orm.
D. In all cases, documentation 'cha'c bids were solicited and awarded
compe~itively will be maintained and in all cases con~rac~ors wiTI be nol:ified of bid
vesutts and award,
lOUSING ,.\SSIS'I'ANCI'~ PI~.OGIL:kMS PAGE 19
XII. 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 will be responsible for making homeowners aware of
this guarantee and will assist in enforcing this guarantee should problems arise.
XIII. CONTRACTING REHABILITATION
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 contract Will
be required in order for fund~ig of the contract. The signature of the Housing
Pro, grams Administrator on the contract document will evidence this approval. The
contract will consist of a single document made up of the bid, 'general and specific
terms of the contract, specification of work to be accomplished under the contract and
a copy of the Owner-Cib/Agreement.
B. Change Order Procedure - Change orders may be approved to make
changes in scope of work or to allow for cost increases/decreases or no cost changes
required to pay the cost of repair and/or replacement of actual or incipient code
violations which were not obse;-.'tf :: :: - t': ""-'-t::~? ~,c ~h: ?-e?aration of the
original contract.
I IOUSING ASSI~I'ANCE PI~.OGIt&MS PAG g 20
C. Payment Procedure - Payments will be made following payment schedules
contained in the contract. These ~ill generally be after completion of 50% and 100% of
the work. Payments will be made based upon the Housing Programs Administrator's or
designated staff's concurrence that works have been completed according to
specifications in the contract.
XIV. INSPECT[ON OF REHABIL1TA'F[ON 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 by either the Contractor or Homeowner. Additionally,
inspector will make periodical on-site inspections.
B. Upon adequate .final inspection, the Housing Programs Administrator or
designated staff 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 will reiinspect the property 10 months after
:,::7,:~I~_b2 to ~ ? :n',' ':~f~zts have beer, identified~so they can be corrected during
the warranty period.
I lOUSING ..\SSIS'I'.hNCE PI~.OGIL~.MS PA. GE 21
C. Homeowners with warranty concerns should make a written request to
the contractor and forward a .copy'of'th!s .request to the City. The contractor will be
given lO working days to remedy the concern. Any ~:ontractor 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.
XV. FORHS
The city attorney prior to their use in operating the program will approve all
forms used as part'of the implement~tibn of the program and which constitute legal
instruments, such as the contract and legal documents.
XVL CONFLICT OF INTEREST
No member of the City Council and no other official, employee or agent of the
city government who exercises 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
-~n interest in any contract, subcontract either for themselves or those with whom they
have immediate family or business ties.
IIOUSING ;\SSIS'I'ANCi'i PROGR,-k},IS P;kG[:?22
GENERAl. PRO'PERTY ]:MPROVEMENTS (GPIs'}
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.
1. Paintin9 of wails, 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 holde'rs, and soap dishe~:' 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. Addition of kitchen cabinets and food preparation areas in excess of minimum
standards.
7. Safety devices requested by the homeowner such as flood lights, etc. not
required under Hinimum Rehabilitation Standards.
8. Doorbells.
9. Installation of new and/or replacement of' existing floor co'.'s-;~s when not cited
as a violation.
10. Upgrades of materials which exceed the minimum grade and price established by
IIOUSING ASSIST?uNCI
the City.
To the extent feasible, GPIs'rn~y 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.
IIOUSING ASSIST,,kNCE PI~.OGlt,:~MS 1)AGE 24
Notices
DELINQUENCY GUIDELINES
:IL0 Day
After the 10-day grace period a late charge will be assessed to the account. At this
point, the Borrower can pay the total amount due or contact the Loan Services to
discuss any special considerations he/she might need to meet his/her payment
agreement.
30 Day
After 30 days delinquent, 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 the 30-day notice a letter will be mailed certified, 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 and the possibility of default and
possible foreclosure on the loan. Beyond 90 days the loan will be in default and
consideration for foreclosure on the property will be made by our office.
Not Sufficient Funds
A check returned to our office as Not Sufficient would automatically make the
Borrower's account delinquenl;; as the payment(s) will have to be reversed in the
Mortgage Servicer. To make the account current a letter will be sent requesting the
Borrower to pay the original payment amount plus late charges and a $:[0.00 NSF
ch'a~'ge per check in the form of cash or money order.
Informal Payment Plan
If the Borrower is less than 3 payments behind, he/she can schedule an informal
payment plan with the Loan Servicer. An informal plan will allow the Borrower to pay
as needed to ma!Ge the account current. Example: The Borrower can work out a plan
to make weekly or bi-weekly payments until the account is current..T? after 2 months
the Borrower cannot make his/her account current then he/she has the option of
requesting forbearance.
IIOUSING ,'\SSIST.\NCI~ I)ROGIL'kMS PAGE25
DEFAULT GUZDELI'NES
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 Services 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 Servicer will review the request for
Forbearance. The ~ecommendation 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 Servicer shall work out the terms of this agreement. Late
payments, interest due and late charges wilt 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 alter 3 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 accorda'nce with the Texas
Property Code.
Summary
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
individuaIs; not to repossess homes. Yherefore, every effor possible will be made to
work out an agreement to keep the homeowners in their homes up to the 90-day
default.
[lOUSING ASSIS'I'.\NCI~ I~I~.OGll:\MS PAGE 26
GRIEVANCE PROCEDURE
City of P0~Arthur Hou. sing Division
Should any applicant for or recipient of ~b/ices from the Housing Division wish to file a
grievance against the City of Port Arthur pertaining to such services provided or applied
for, the following procedure shall be followed to address the grievance:
The person(s) filing the grievance may either verbally or in writing request an
appointment with the Housing Programs Administrator to present the complaint.
At this informal stage.of the resolution process, the complaint may be presented
either in written form or verbally. ]:t is the Division's intent to respond to and
resolve the complaint as quickly as possible and practical, but a response to the
complainant should be made no later than 10 working days from the date of
receipt.
Should the response by the Housing Programs Administrator not be satisfactory
to the person(s) bringing the complaint, an appeal may be made directly to the
Director of Planning. 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 necessary to come to a thorough understanding of the situation.
The information provided should include the complainant's name, address, and
daytime telephone number. The Director of Planning may ask for additional
written information that may aid in understanding the scope of the problem and
has the option of meetir}g with the person(s) involved before reaching a decision.
A response to the complainant 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.
Should the response by the Director of Planning 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 complainant should be made within 20
~,,/orking days fro'- receipt of the request for appeal to the City Planager.
£
The following list icJentifies the name, addresses, and telephone numbers of the
persons to contact: to file a grievance:
[ lOUSING ASSIS'I'.\NCI( PI~.OGIL'~.MS PAGE 27
Housing Programs Administrator
Room 205 "
444 4th Street
Port Arthur, Texas 77640
(409) 983-8259
Dale Watson
Director of Planning & Grants
Management
Room 337
~.~.~. 4m Street
Port Arthur, Texas 77640
(409) 983-8:~38
I (we), the undersigned, have read and understand the grievance procedure
describe~i above which is to be used for the purpose of resolving any complaint
relating to the HousiNg Assistance Division of the City of Port Arthur.
Applicant Date
Co-applicant Date
[lOUSING A~I$"i'ANCF, PROGRAs~[$ I~AGI". 28