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7.2 HOME Guidelines CITY OF SALINA REQUEST FOR COMMISSION ACTION DATE TIME 4:00 P.M. 5/1195 AGENDA SECTION: ORIGINATING DEPARTMENT: APPROVED FOR NO. 7 AGENDA: ITEM PLANNING & DEVELOPMEN] Roy Dudark , BY: BY: Item Consider approval of Guidelines for the HOME Homeowner Rehabilitation Program. Backqround The cigy has been awarded a $200,000 HOME housing grant by the i Kan,~s!i~ePartment of Commerce an~ Housing to conduct a HOmeowner ~,', ! Reh~bilitatton Program. This grant: is to be matched of city funds. [ i 'The goal of the program ts to completely rehabilitate ~5 owner- ~ occupied substandard dwellings. : ..'Ini~o'rder' to implement the prOgram in compliance with HOME requirements, guidelines must be adopted at the local level. The attached guidelines set out those requirements. Recommended Action Adopt the HOME Housing Rehabilitation Program Guidelines. Enclosure COMMISSION ACTION MOTION BY SECOND BY THAT: CITY OF SALINA HOME HOUSING REHABILITATION PROGRAM GUIDELINES I. INTRODUCTION The City of Salina Home Housing Rehabilitation Program is administered by the Salina Community Development Department under contract with the Kansas Department of Commerce and Housing. The purpose of the program is to provide low-to-moderate income homeowners with assistance in the rehabilitation of their homes in order to bring the homes up to minimum quality standards necessary for the general health and safety of the occupants. The administration of the program will be consistent with the City's approved application, Kansas Home Investment Partnerships Program requirements and with all regulations of the Kansas Department of Commerce and Housing. II. TARGET AREA LOCATION The target area will consist of three areas of the City (see attached map). III. ELIGIBLE APPLICANTS To be eligible, applicants must meet LOW INCOME limitations as provided in the Program Income Limits sheet included with these guidelines. Income eligibility will be determined through the application process and all sources of income will be verified. Applicants must own and reside in the dwelling unit for which the housing rehabilitation application is submitted. IV. ELIGIBLE PROPERTIES Houses occupiedbythe owners are eligible for rehabilitation provided they are located in the target area and meet the definitions of SUBSTANDARD and SUITABLE FOR REHABILITATION. SUBSTANDARD is defined as housing that is in need of any of the following items. a. Repairs or replacements of roofs. b. Repairs or replacements of sidewall structures and/or siding. c. Foundation repairs. d. Ail structural member repairs and/or replacements. e. Electrical repairs and/or replacements. f. Plumbing repairs and/or replacements. g. Insulation to include sidewall, ceiling, under floor and rim joist. h. Furnace and/or heating unit repairs and/or replacements. i. Door and/or window repairs and/or replacements. J. Air conditioning (at least one room if deemed necessary for health reasons by a medical doctor). k. Exterior and/or interior painting. 1. Elimination of unsafe and/or unhealthy conditions existing anywhere on the property, including but not limited to, barrier removal for the elderly and disabled. m. Remediation of lead-based paint hazards. n. Demolition costs (when part of a rehabilitation/reconstruction project) o. Site improvements and utility connections. SUITABLE FOR REHABILITATION is defined as a substandard housing unit for which it is technically and financially feasible to restore it to a standard condition, given the limits of the program. In addition, all real estate taxes and city utilities must be current and a hazard insurance policy for the appraised value of the dwelling must be in effect for a property to be eligible for assistance. V. ELIGIBLE ACTIVITIES Owner-occupied rehabilitation may include, as necessary, any of the items listed in the definition of SUBSTANDARD housing and any reasonable and necessary related soft costs including architectural, engineering or related professional services and financing costs such as loan points, credit and title costs, recording fees, building permits, legal fees, appraisals and developer fees. Weatherization activities must be reviewed with the North Central Regional Planning Commission (NCRPC) for funding eligibility. If applicants or properties are not eligible for weatherization funds from the NCRPC or funds are needed to supplement the weatherization work needed, those activities may be undertaken through the Salina Home Housing Rehabilitation Program. Temporary displacement of residents will be avoided except under the most extreme circumstances. If temporary relocation should become necessary, only reasonable costs will be funded, as required by the Federal Uniform Relocation Act. Any rehabilitation activity undertaken must meet HUD Section 8 Housing Quality Standards, energy conservation standards or local housing or building codes, whichever are greater. VI. INELIGIBLE ACTIVITIES Any activity which does not contribute to the rehabilitation of eligible housing for owner-occupant residents, contribute to energy conservation or contribute to the removal of health and safety risks -2- 5/1/95 located on the property is considered ineligible. Activities specifically ineligible include: pools, patios, decks, fireplaces, new garages, and installing new vinyl or metal siding over existing siding. VII. LIMITS AND TERMS OF EXPENDITURE The maximum total amount that will be provided for the rehabilitation of any one property or to any one owner is $25,000. No rehabilitation assistance of less than $1,000 shall be made. Ail rehabilitation assistance shall be made in the form of a soft or deferred payment loan. The deferred loan will be forgiven at the rate of one thirty- sixth (1/36) for each month the applicant continues to own and reside in the dwelling over a period of three years. A second mortgage lien will remain on the property until the end of three years or until loan repayment occurs due to non-compliance with residency or ownership requirements. VIII. APPLICATION PROCEDURES The availability of Home Housing Rehabilitation Program assistance will be publicized to residents of the target areas through the local media and other appropriate means. Applications and information about the program can be obtained from the Community Development Department, Room 205, City-County Building, 300 W. Ash, Salina, Ks 67401 or by calling 826-7260. Applications will be screened in accordance with the eligibility criteria as stated in ELIGIBLE APPLICANTS, ELIGIBLE PROPERTIES and ELIGIBLE ACTIVITIES. Screening of applications and selection of recipients will be performed by the Community Development Department in accordance with the following ranking procedures. Eligible applicants submitting a completed application by the established filing deadline shall be ranked based on the following point system: No. of Points Basis 2 Within the Very Low Income limits 2 At least one resident 60 years of age or older 2 At least one resident with a qualified disability 2 Single head of household 1 For each dependent in the household Applicants receiving the highest point scores will be selected for a preliminary inspection to determine the number of major structural defects present in the home and the feasibility of rehabilitation. The final determination for application approval and work to be done will be dependent upon findings of the preliminary inspections, cost estimates, appraised value before and after rehabilitation, and contractor bids. These findings must be consistent with these guidelines and the HOME program requirements. -3- 5/1/95 IX. INSPECTION PROCEDURES Once an applicant has been deemed eligible for assistance, an inspection will be made of the property. Following inspection, a work write-up and preliminary cost estimate will be prepared. If deemed financially feasible and upon property owner approval of the work write-up, a contractor will be selected by the city to complete the specified repairs. A construction contract will be prepared, and following approval by the property owner, a notice to proceed will be issued. Ail work will be inspected for compliance with contract specifications and applicable codes. The property owner must approve in writing the final inspection of the completed work. X. RESPONSIBILITIES OF HOMEOWNERS Homeowner must agree to provide all information necessary to complete the application and document income. The property to be rehabilitated must be owned and occupied by the applicant a minimum of 6 months prior to submittal of the rehabilitation application (except when used in combination with a First-Time Home Ownership Assistance Program). Owner must show proof of property insurance and must show title to property. Owner must further agree to allow rehabilitation work and to provide access to the property by rehabilitation personnel, city inspectors, and contractors for pre-bid construction walk-throughs. Owner must also complete an agreement relating to the three year residency and ownership requirements. XI. CONTRACTING PROCEDURES Procurement procedures of OMB Circular A-102, attachment O, will be used for procurement of services, materials and products. Contractors will be selected for rehabilitation projects by competitive sealed bid. Invitation for inclusion on an approved contractors bid notification list will be solicited from all known area contractors through local media and individual written solicitation. Approved contractors must carry liability insurance. Ail interested bidders will be provided with a clear and accurate description of the technical requirements of the material, product, or service to be provided, any requirements which they must fulfill, as well as all other factors to be used in evaluating bids or proposals. In the event that an insufficient number of bids are received, or the bids are unacceptable, the work may be rebid or alternative procurement procedures may be used, such as Small Purchases or Non- Competitive Negotiations, with the approval of the Kansas Department of Commerce and Housing. Sub-contractors may be selected for specialized work (e.g., electrical, plumbing, heating and air conditioning, etc.,) by competitive price quotations from a minimum of three individuals or firms to provide specific scope of work and/or materials for a fixed sum. -4- 5/1/95 Awards will be made only to responsible contractors who possess the potential ability to perform successfully under the terms and conditions of the proposed project. Consideration shall be given to price, as well as such matters as compliance with established policies, record of past performance, and financial and technical resources. Bids and proposals will be reviewed by the Housing Rehabilitation Coordinator and a recommendation will then be forwarded to the Director of Community Development for approval. A contract will be signed by the homeowner, contractor and Department of Community Development. The contract will outline the scope of work to be performed and required specifications. No changes will be made unless prior written approval is obtained from all parties. Progress payments will be made for completed work only. Contractors shall obtain lien releases from sub-contractors prior to payment. Under no circumstances will final payment be made to the contractor until all work is satisfactorily completed. XII. CIVIL RIGHTS The administration of the Salina HOME Housing Rehabilitation Program will be consistent with the civil rights requirements of the Kansas Department of Commerce and Housing. XIV. GRIEVANCE PROCEDURES Complaints and grievances will be handled initially by the Housing Rehabilitation Coordinator and Director of Community Development. If the matter cannot be satisfactorily resolved, the individual may file a written complaint with the City Manager. The complaint will be answered in writing within fifteen (15) days of receipt. The individual may appeal the decision of the City Manager in writing to the Board of City Commissioners. The individual must appear in person before the City Commission in order for the appeal to be considered. The City Attorney shall assist the City Commission in reviewing the appeal. The decision of the City Commission shall be final and the individual notified in writing. XV. PROGRAM INCOME Any income that may be generated as a result of the administration of HOME grant funds will be returned to the Kansas Department of Commerce and Housing. XVI. AMENDMENTS TO PROGRAM GUIDELINES The aforesaid guidelines, and any subsequent amendments, shall serve as the official policy for administration of the Salina HOME Housing Rehabilitation Program upon adoption by the City Commission. Adopted on May 1, 1995 -5- 5/1/95