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
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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.
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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.
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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
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