City of Hot Springs Arkansas Community Development Block Grant Program

Transcription

1 City of Hot Springs Arkansas Community Development Block Grant Program HOUSING REHABILITATION GUIDELINES July 2009

2 Table of Contents 1. Purpose 2. Applications 3. Eligibility 4. Target Areas 5. Maximum Subsidy 6. Scope of work 7. Financial Assistance 8. Bid Process 9. City/Owner Contract 10. Project Completion/Payment 11. Arbitration 12. Change Orders 13. Emergency Repairs

3 1. PURPOSE The City of Hot Springs CDBG/Housing Rehabilitation Program is designed to assist low to moderate income, owner occupied, single family home owners by providing housing rehabilitation grants to qualified home owners residing within the corporate limits of the City of Hot Springs. The Program will be operated in accordance with all CDBG program requirements set forth by the U S Department of Housing and Urban Development and the City of Hot Springs. 2. APPLICATIONS All applicants must complete a pre-application and if qualified, a full application form provided by the CDBG program administrator. The applicant may be required to submit proof of income, proof of home ownership, credit information, and employment information, information regarding liens or mortgages and/or other required information. Qualified applicants will be provided assistance on the following basis: Priority will be given to applicants who have an immediate need, including but not limited to the following: the need shall be an immediate threat to the life, health or safety of the occupants, an immediate threat to the safety, structural or mechanical integrity of the home, or to prevent further damage to the home. The Community Development Administrator will determine need based on the inspection of the home and needs of the applicant. If there are no immediate needs applicants, the assistance will be provided on a first come first served basis rotating from each target area and non-target area. 3. ELIGIBILITY All recipients of CDBG Housing Rehabilitation assistance must comply with the income guidelines established by the U.S. Department of Housing and Urban Development. Applicant s adjusted gross income cannot exceed 80% of median income for Garland County. All applicants must own and reside in the property to be rehabilitated and the property must be their principal place of residence. The applicant(s) must be the only name/s on the title/deed to the home funding is being applied for. A reverse mortgage, second mortgage, tax liens, liens in addition to a first mortgage or names on the title/deed that are not on the application will disqualify an applicant. 4. TARGET AREAS The Community Development Advisory Committee (CDAC) shall make recommendations to the City of Hot Springs Board of Directors to designate target areas. Said target area designations shall be based on the following factors: Compliance with all HUD/CDBG guidelines, condition of existing housing stock with in the proposed target area, compliance with other City plans and programs.

4 5. MAXIMUM SUBSIDY The maximum subsidy for housing rehabilitation projects will be twenty five thousand dollars ($25,000.00) or 80% of fair market value as determined by the Garland County Assessor, which ever is the lower amount. This amount shall include all project costs associated with the project, including any lead based paint abatement or other material abatement required by Federal, State or Local regulation. All projects over $ 25, dollars will require recommendation by the (CDAC). The CDAC will consider the cost feasibility of all rehabilitation projects exceeding the maximum subsidy and make recommendations to the City of Hot Springs Board of Directors for approval. 6. SCOPE OF WORK The City will inspect the structure to determine the feasibility and scope of work needed, including but not limited to the structural components, the roof, the exterior finish, the electrical system, the plumbing systems, the HVAC system, the interior wall, floor and ceiling finish and the windows and doors. All completed rehabilitation projects must meet the Energy Efficiency Standards established in the AR. Energy Code, provided the city reserves the right to waive certain energy standards deemed to be cost inhibited to the project. All rehabilitation projects shall be modest in nature as defined by the U.S. Department of Housing and Urban Development. 7. FINANCIAL ASSISTANCE Financial assistance shall be extended to the property owner in the form of a deferred payment, forgivable loan not to exceed the principal amount of the actual construction cost. The property owner will be required to execute a mortgage and promissory note with the City for said principal amount. The terms of the note shall be based of the dollar amount of the project cost. Projects ranging up to $10,000 dollars shall be for 5 years. Projects ranging from $10, dollars to $25,000 dollars shall be for 10 years. Projects exceeding $25,000 dollars require CDAC recommendation and the terms of the note will be recommended by the CDAC. Recommendations from CDAC shall be refereed the Board of Directors for approval. Funding invested shall not exceed $25,000 or 80% of fair market value as determined by the Garland County Assessors office records unless approved by the City of Hot Springs Board of Directors. 8. BID PROCESS The CDBG program administrator will request bids from qualified contractors for all work identified in the project bid packet. Request for bids will be advertised in the local newspaper. All contractors will be subject to the regulations and requirements set forth by the Department of Housing and Urban Development and the City of Hot Springs regarding contractor licensing and qualifications. The CDBG program administrator shall develop a standard construction contract between the property owner and the contractor. The city will not be a party to this contract but will act in the property owner s behalf for the purpose of making payments to the contractor. A bid bond of five percent (5%) of the total bid will be required at the time of bid submission.

5 9. CITY/OWNER CONTRACT AGREEMENT Prior to the commencement of work the property owner will be required to sign a Rehabilitation agreement with the City. Said rehabilitation agreement shall be developed by the program administrator and shall be in accordance with all HUD required CDBG procedures. The City Manager or his designee shall be hereby authorized to execute said agreement. The rehabilitation agreement will define the responsibilities and requirements of the property owner and the city for the duration of the contract agreement. Failure to abide by the conditions stated in the rehabilitation agreement can result in termination of the agreement and recapture of any CDBG funds allocated by the City. 10. PROJECT COMPLETION/FINAL PAYMENT As soon as the contractor indicates completion of the project and requests final payment, the City will conduct a final inspection. The property owner, the City and the contractor will complete the final inspection and sign the certificate of completion. Final payment will not be released to the contractor until said certificate is signed by all parties. Pay requests shall be in increments of 25% of contract amount, and can be 25%, 50%, 75%, or 100%. Final payment, regardless of percentage amount, will be held until permit inspections are finaled, final inspection is signed by owner and the City, lead paint clearance has passed, and a lien waiver has been signed by the contractor. Bid bonds will be returned with the final payment. 11. ARBITRATION In case of any dispute or controversy between the parties to the contract concerning, but not limited to, the validity, construction or interpretation of the contract, the parties shall refer the dispute in writing to the CDAC. The CDAC shall promptly hear the dispute and deliver a written recommendation to each party and the Board of Directors. The dispute shall then be heard by the Board of Directors whose decision shall be final and binding on all parties.

6 12. CHANGE ORDERS After commencement of a contract, any proposed changes to the specifications must be submitted by the contractor or Housing Rehabilitation Specialist as a change order. It shall be the sole basis for authorizing any deviation from the specifications and contract documents. It shall also serve as documentation and must explain why a change is required, what the change involves and the cost of the change. Change orders up to 10% of the original contract amount shall be approved by the CDBG administrator. Amounts between 10% to 20% of the original contract amount shall be approved by the Director of Planning and Development or the Chief Building Official. Amounts greater than 20% of the original contract amount shall be approved by the City Manager. All costs that are not authorized by a change order shall be absorbed by the contractor. 13. EMERGENCY REPAIRS The City of Hot Springs shall designate 10% of a given years rehabilitation budget for emergency repairs. Emergency repairs shall include but are not limited to: roof leaks, plumbing leaks, heat stops working in winter. Any other condition shall be evaluated by CDBG staff on a case by case basis. 14 RE-APPLICATION WAITING PERIOD Applicants that have received funding for rehabilitation from the City of Hot Springs may re-apply for additional funding under the following guidelines: a) the mortgage resulting from the construction costs of the previous rehabilitation has been satisfied. b) applicant will be placed at the bottom of the applicant list. 15. CONTRACT AWARD All rehabilitation work will be competitively bid, and the City of Hot Springs will award the contract to the lowest responsive, responsible bidder. The City of Hot Springs will determine the award recipient based on the U.S. Department of Housing and Urban Development s (HUD) procurement regulation, 24 CFR Part (b-h).