EXHIBIT A RESIDENTIAL SEWER LINE REPAIR AND REPLACEMENT PROGRAM
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1 EXHIBIT A RESIDENTIAL SEWER LINE REPAIR AND REPLACEMENT PROGRAM Purpose The Residential Sewer Line Repair and Replacement Program ( Program ) is sponsored by the City of Baytown. The Program is funded, in part, by Community Development Block Grant (CDBG) funds. The goal of this Program is to assist citizens in the cost of repairing or replacing decayed sewer lines on private residential properties. The improvements are necessary to reduce the inflow and infiltration of rainfall water into the City of Baytown s sanitary sewer system. Program Description Under this Program, the City of Baytown will test private sewer lines within the city limits of Baytown. The City of Baytown will notify in writing those property owners whose sewer lines are in need of repairs or replacement and provide them with the results of the tests. If the sewer line is in need of repair or replacement, the property owner may apply to the Community Development Division for participation in the Program. The Community Development Division will accept and process all applications. If the property owner is deemed eligible and sufficient Program funds remain available, the property owner will enter into a standard form of Agreement for Community Development Projects with the City and a plumber who has been selected by the City of Baytown based upon a competitive bid process to repair and/or replace private sanitary sewer lines. The City will facilitate the contract and act as the owner s representative and upon completion place a lien on the property for the cost of the work. The actual work under the Program will be monitored and payments to the plumber will be processed by the Community Development Division. The Program will provide funds to eligible participants to repair and/or replace the private sanitary sewer line from the City of Baytown s main line to the building s edge. These funds are available in the form of a five (5) year forgivable loan and shall be paid directly to the contractor at the time of completion and acceptance by the City of the project. Any additional repairs, which are required to complete the work and properly tie-in to the house line, may be possible through this Program. Eligibility Requirements All potential participants must provide the appropriate documents to verify the following: 1. Applicant must reside within the city limits of Baytown; 2. Applicant must own the home; 3. Applicant must occupy the home as his/her primary residence; 4. All members of homebuyer s household must be legal residents of the United States; and 5. Applicant household s annual gross income must not exceed eighty percent (80%) of the maximum income limits, which will be recalculated each year, based on HUD s guidelines and the median income of residents of the Houston Primary Metropolitan Statistical Area. Residential Sewer Line Repair and Replacement Program, Page 1
2 Requirements for the Application Review The homeowner must complete and return the Program application and include the appropriate documents, as determined by the Director of Planning and Development Services, to verify the following: I. Composition of Household Household composition must include all persons who occupy the applicant s housing unit at the time of application. The occupants may consist of a single person; group of persons related by birth, marriage, adoption, or law; or a group of unrelated persons who share living arrangements. Documentation shall include the following information for each person: A. Copy of social security card, official birth certificate or other applicable INS documentation (such as Form I-55, Form I-94 or Form I-688); B. Proof of marital status if an occupant is divorced or is a widow or widower; and C. Verification of student status, if applicable. II. III. Household s Annual Gross Income. The applicant household s annual gross income must not exceed eighty percent (80%) of the maximum income limits, which will be recalculated each year, based on HUD s guidelines and the median income of residents of the Houston Primary Metropolitan Statistical Area. Documentation for this eligibility requirement shall include all of the following that apply for ALL household members of the house: A. Last Income tax return(s) for all employed household members; B. Social Security Award Letter stating amount of monthly Social Security or S.S.I. for all household members; C. Unemployment Verification for all non-working household members; D. Proof of interest/dividends from investments for all household members; E. Proof of child support, alimony, or separate maintenance; F. Award letter from Veteran's Administration; G. Verification of self-employment wages; H. Food stamp award letter; I. AFDC/Welfare verification; J. Employment Verification for all working household members; K. Verification of regular gifts/contributions; L. Copy of all checking and savings account(s) monthly statements for all household members for the past three months; and M. Proof of all other sources of income. Ownership and Occupancy. The applicant must own and occupy the home as his/her primary residence. Please submit all of the following that apply for proof of ownership: A. A copy of the deed on the home and on any other property owned (copy of contract for deed will not fulfill program requirements); B. Verification from the lienholder or the mortgage company that the house payments are current; C. Verification from the taxing entities that: Residential Sewer Line Repair and Replacement Program, Page 2
3 i. all ad valorem taxes are current, or ii. all delinquent ad valorem taxes are subject to a payment plan and all payments thereunder are current; D. Copy of the current water and sewer utility bill; and E. Verification from the Utility Billing Division that all payments for water and sewer utility service are current. IV. Eligible Properties. Eligible properties must meet the following criteria: A. Located within the city limits of Baytown; B. Determined by the City to have private sewer lines which are in need of repairs or replacement, for which the owner thereof has i. received notice of the need to repair or replace the private sewer line, ii. made application for the Program, and iii. met all of the requirements to receive assistance under the Program. General Information Regarding Process Once an application has been reviewed, and it has been determined that the applicant qualifies for the Program, the Community Development Division shall take the following steps: 1. Notify the City s Public Works/Utilities Department of the applicant s eligibility; 2. Identify the appropriate plumbing contractor based upon a competitive bid process; 3. Prepare all other necessary forms for execution by the homeowner, contractor, and the City. These forms include, but are not limited to: a) Contract between homeowner and contractor(s); b) Contract between the City of Baytown and homeowner; c) Contract between the City of Baytown and contractor (s); d) Intent to Place Lien; e) Owner Lien Agreement; f) Notice to Proceed; 4. Facilitate the contract between the owner and plumber; 5. Schedule the work; 6. Monitor and inspect the private sewer line replacement; and 7. Process payment to the appropriate contractor(s) upon completion and the City s acceptance of the work. Once these steps have been completed, a notice to proceed will be issued and work will begin on the private sewer line within ten (10) days thereafter. Depending on the scope of the project, the work will take approximately seven (7) to thirty (30) working days. A working day is an eight- (8) hour day, Monday through Friday, excluding holidays. The work schedule will be adjusted for inclement weather. The homeowner will not be required to move; however, if other living arrangements can be made during the course of the work, the repairs can generally be completed in less time if the homeowner has somewhere else to stay at his/her expense. There will be a period of time when the utilities will be disconnected. This can be a great inconvenience to the owner. Prior to any Residential Sewer Line Repair and Replacement Program, Page 3
4 work being done, it is the homeowner's responsibility to remove any items from the yard that may hinder easy access to the sewer line and secure all pets during the process. The contractor will furnish a one-year warranty on the sewer line repair/replacement. If the homeowner has any sewer problems within this one-year period, the homeowner should contact the City of Baytown s Community Development Division as soon as possible. If the homeowner or someone other than the original contractor attempts to make repairs, the warranty may be voided, and the homeowner will be responsible for the cost of the repairs. The warranty does not cover damages caused by homeowner abuse, normal wear and tear, weather, neglect, or intruders. Relationship between the City of Baytown, the Contractor, and the Homeowner The Director of Planning and Development Services or his/her designee will represent the City of Baytown when it is necessary to resolve disputes between the homeowner and the contractor. The resolution of the Director of Planning and Development Services or his/her designee shall be final and binding upon both the homeowner and the contractor(s). The City of Baytown and the contractor reserve the option to speak only with the person/persons who signed the contract regarding the project. The homeowner(s) shall not interfere with the work of the contractor(s). The contractor(s), his/her employees, and the homeowner(s) shall not be discriminated against on the basis of religion, race, national origin, or gender. The City of Baytown shall act as the homeowner s representative throughout the entire course of the sewer line repair and/or replacement. Information on the Lien Agreement In the event the owner(s) sells, assigns, encumbers, or transfers the property within five years from the date of acknowledgement of final completion of the work required, the owner will be liable to the City of Baytown for the amount of reimbursement according to the schedule below. In the event of the death(s) of the owner(s) of the property, the estate will be required to reimburse the City in accordance with the following schedule: If the transfer or death occurs within the first twelve (12) months - 100% of the total rehabilitation project cost. If the transfer or death occurs within thirteen (13) to twenty-four (24) months - 80% of the total rehabilitation project cost. If the transfer or death occurs within twenty-five (25) to thirty-six (36) months - 60% of the total rehabilitation project cost. If the transfer or death occurs within thirty-seven (37) to forty-eight (48) months - 40% of the total rehabilitation project cost. If the transfer or death occurs within forty-nine (49) to sixty (60) months - 20% of the total rehabilitation project cost. Residential Sewer Line Repair and Replacement Program, Page 4
5 The lien will not be released until the estate as described above makes the appropriate payment. During the five (5) year period upon sale, transfer of title, failure to maintain code compliant repairs, or cessation of owner-occupied status, the unforgiven balance of the project cost shall be due within sixty (60) days and payable to the City of Baytown. If not paid within the time specified, interest will be accrued at a rate of one percent (1%) each month. General Information Violating the guidelines in any manner constitutes violation of the contract and the homeowner(s) will be disqualified from the Program and all other housing programs offered by the City of Baytown. Upon the determination by the Director of Planning and Development Services or his/her designee that a violation of the guidelines has occurred, the applicant(s) must repay the City of Baytown in full for all work performed on the sewer line within 30 days of such determination. Late payments will accrue interest at the rate as permitted in Section of the Texas Government Code. R:\Karen\Files\Community Development\Sewer Repair & Replace Program\Guidelines4SewerLineReplacement20074Resolution.doc Residential Sewer Line Repair and Replacement Program, Page 5
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