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HomeMy WebLinkAboutRES 06-379 RESOLUTION NO. 06 - 379 WHEREAS, on October 31, 2006,the City Council for the City of Beaumont adopted guidelines for the Texas Department of Housing and Community Affairs("TDHCA")funded residential emergency repair, housing rehabilitation, and single-family rental rehabilitation programs; and, WHEREAS, new TDHCA program directives have been given to the City since that time; and, WHEREAS, in order to conform to the new TDHCA approved Disaster Program Guidelines, previously adopted City guidelines will need to be revised; and, WHEREAS, it is proposed that a Reconstruction/New Construction component be added to the Owner Occupied housing program which will require the reallocation of $1,000,000 previously approved for Rental Rehabilitation to the Reconstruction/New Construction activity. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: That the City Council approves the adoption of the revised Housing and Program Guidelines that will serve as an administrative tool for the federal disaster recovery programs administered by the City. The revision is substantially in the form attached hereto as Exhibits "C.1" and "C.2" and made a part hereof for all purposes. BE IT FURTHER RESOLVED that the City Council hereby approves the reallocation of Texas Department of Housing and Community Affairs ("TDHCA") Disaster Program funds as shown below: Current Proposed Emergency Repair $24,000 $25,000 Owner Occupied Rehabilitation $15,000 $65,000 Owner Occupied Limited to $100,000 PASSED BY THE CITY COUNCIL of the City of Beaumont this the 12th day of December, 2006. Mayor Guy N. Goodson - a t EXHIBIT "CA" low City of Beaumont Housing Services Division TDHCA Residential Emergency Repair Program Guidelines Community Development Block Grant(CDBG) TDHCA Disaster Program-Residential Emergency Repair Program Effective November 1,2006 Page 1 of 7 TDHCA Residential r nc repair Program Guidelines Mayor Guy Goodson Mayor Pro-Tem Nancy Beaulieu Councilwoman Lulu Smith Councilman Andrew Cokinos Councilman Audwin Samuel Councilwoman Becky Ames Councilwoman Bobbie Patterson Kyle Hayes City Manager Adopted by the Beaumont City Council November_, 2006 cuwi�jr Housing Services Division 801 Main,Suite 225 P 0 Box 3827 Beaumont,Texas 77704 Phone 409.880.3763•Fax 409.880.3125 f TDHCA Disaster Program-Residential Emergency Repair Program Effective November 1,2006 Page 2 of 7 U wTDHCA Disaster Program TDHCA Residential Emergency Repair Program Guidelines Effective: November 1, 2006 1 The objective of the.Residential Emergency Repair Program is to provide assistance to homeowners with an urgent need for emergency repairs when they are without sufficient resources to make those repairs themselves. This program is designed to assist with "urgent need"repairs resulting from Hurricane Rita. Who is Eligible? As a homeowner, you may be eligible for assistance under this program, if you meet all the following conditions: 0 Your total household income is at or below 80% Median Area Income. 0 First priority will be given to uninsured persons age 62 and above who are also disabled and/or medically fragile. Second priority will be to uninsured single head of households. Third priority will be to underinsured persons age 62 and above who are also disabled and/or medically fragile.. Fourth priority will be to underinsured single head of households. Fifth priority will be to all other qualified households on a first come, first served basis. 0 Your home (single-family dwelling unit) must be located within the city limits of the City of Beaumont. 0 Your home requires an urgent repair, which if left unattended, would jeopardize the health and safety of the occupants. Needed repairs must have resulted from hurricane farce winds andlor rain. 0 You must own and occupy your property as your principal residence on a year-round basis. 0 You must hold the title to the property or contract for deed or contract for sale. Contract for Deed or Contract for Sale is subject to time restrictions. 0 You must be a United States citizen or legal resident alien. i �w - TDHCA Disaster Program-Residential Emergency Repair Program Effective November 1,2006 Page 3 of 7 A You must complete the application process and your application and requested repairs must be approved by the j City of Beaumont. Please note that all other disaster recovery funds, including but not limited to homeowner's insurance proceeds and funds from FEMA, Small Business Administration (SBA), Red Cross, etc., must be used and evidence provided, prior to the disbursement of any TDHCA Disaster Program Residential Emergency Repair funds. A Your property must meet all environmental restrictions and regulations including floodplain, historical, lead-based paint, etc. If a work write-up determines that needed repairs exceed program limits established for Emergency Repair, the homeowner will be advised and needed repairs will be considered under the TDHCAA;Housing Rehabilitation Program or the TDHCA Single- Family Reconstruction Programi What Types of Repairs are Eligible? Generally, repairs that are an urgent need are eligible for assistance. Housing I Services Division staff will inspect the unit to determine if the repair is eligible. Eligible Repairs: repairs necessary to protect the health and safety of the household members. repairs may include mechanical, plumbing, electrical, roofs, walls, floors, ceilings, foundations, doors, windows, cooling and heating systems, building related deficiencies, or repairs that involve hazards that would cause the unit to continue to deteriorate. The following are some examples of eligible repairs: Plumbing, Sewer Lines, Electrical Wiring Systems, Roofs, etc. repairs not covered by insurance claims or other disaster related assistance. Please note that all other disaster recovery funds including but not limited to homeowner's insurance proceeds and funds from FEMA, SBA, Red Cross, etc., must be used, and evidence provided to Housing Services Division Staff, prior to the disbursement of any Residential Emergency Repair Program funds. Such evidence includes FEMA damage assessment report, Insurance Adjuster's report or independent work write-up from a bonded contractor, paid receipts and/or canceled checks. If owner has already spent insurance funds for repairs, owner must provide proof of payment and detailed documentation of work completed. funds must be used for buying materials and contracted labor. removal of trees and debris l TDHCA Disaster Program-Residential Emergency Repair Program Effective November 1,2006 Page 4 of 7 Repairs That Are Not Eligible: cosmetic repairs. Cosmetic repairs will not be carried out under the program unless they are necessary to y make the immediate area, where the repair was completed, match the surrounding area as much as possible. rental property and mobile homes are not eligible for assistance. there is no requirement that these repairs bring the entire structure up to minimum property standards. However, codes, standards, and specifications apply to individual repairs. All repairs made will be permanent and not of a temporary nature. What are the Maximum limits for the Program? Eligible housing units may be assisted once. $25,000 —actual repairs exceeding $19,250 will not be approved for this program. Applicant may, however, be considered for the TDHCA Owner Occupied Rehabilitation/Reconstruction Program) Lifetime Maximum: $25,000. Exception: Assistance may be provided upon reoccurrence of a hurricane and funding is made available to the City and approved for,s:uch:assistance. Repairs Completes(: Once the repairs are completed and the contractor receives payment, no additional repairs will be completed. Limited Funds: Staff responds to requests for Emergency Repairs on a first-come- first-served basis from eligible applicants based upon the applicant's priority category and the date the completed application is received. Although a specific amount of funding has been approved by the Beaumont City Council, all program funding is subject to the availability of TDHCA Disaster Program funds. Does the Repair Need to be Paid Back? Assistance is provided in the form of a grant and does not need to be paid back. How do I Apply? 1. Contact the Housing Services Division for an application and inspection. 2. Complete the application process. 3. Submit required documentation, including Applicant's Certification of Disability (where applicable), a copy of your deed and proof that taxes and insurance are current, along with documentation of any insurance payments or financial assistance from FEMA, Red Cross, SBA or any other source. What Happens After I Apply? The City of Beaumont Housing Services Division will complete an inspection to determine if the project is eligible. If eligible, you will receive instructions on how to proceed. The City of Beaumont Housing Services Division will review the application TDHCA Disaster Program-Residential Emergency Repair Program Effective November 1,2006 Page 5 of 7 and will verify that federal guidelines and all other program requirements have been met. If any information is found to be intentionally falsified, the application will be rejected and the applicant will not be allowed to reapply to this program. You will receive written notice of the date the application is accepted or rejected with details of the decision if the application is rejected. In the event your house is 45 years old or older, the Texas Historical Commission may have to be notified. After your application has been accepted, get at least two written estimates for the same work. If you are unable to get two estimates, contact the City of Beaumont Housing Services Division. THE CONTRACTOR YOU SELECT MUST COME TO OUR OFFICE LOCATED IN CITY HALL,ROOM 225,PRIOR TO BEGINNING ANY WORK TO SIGN AN ASSURANCE STATEMENT THAT THE CITY'S STANDARD CONTRACTOR'S GUIDELINES WILL BE ADHERED TO. NO PAYMENT WILL BE MADE FOR REPAIRS BY A CONTRACTOR WHO HAS NOT PROVIDED SUCH ASSURANCE STATEMENT. When painted surfaces will be affected in a house built before 1978, the area will.be tested for lead based paint. A lead based paint inspection and/or risk assessment shall be conducted by a licensed risk assessor. If your house is, four d to have lead-based paint hazards, hazard reduction techniques wall be.�: utilized. A work write-up for the repairs needed to correct the health or safety-related problem must be submitted. The work write-up may be in the form of a FEMA or insurance adjuster's damage assessment report, or from an independent bonded contractor. Only contractors who carry a minimum of$100,000 liability insurance may perform the work. You may select any interested contractor who documents appropriate insurance coverage and is not on the most recent list of contractors who are ineligible to work on projects involving federal funds. The contractor/repair company will provide warranty information for work completed. A copy of warranty information must be submitted to Housing Services. Upon final inspection approval, the contractor may submit an invoice. The payment request will be processed upon project approval and the contractor can usually expect payment within 15 working days from the date invoice was approved. What The Program Is Not Although the TDHCA Residential Emergency Repair Program is designed to respond to a variety of problems, it has limits and should not be confused with other programs offered by the City of Beaumont Housing Services Division. A It is not a rehabilitation program. The most recent item, system, or structure to fail in a home may prompt the homeowner to seek assistance from the TDHCA Residential Emergency Repair Program while many other items are also in need of repair. The TDHCA Residential Emergency Repair Program is TDHCA Disaster Program-Residential Emergency Repair Program Effective November 1,2006 Page 6 of 7 I EXHIBIT "C.2" CUgD City of Beaumont Housing Services Division TDHCA Owner Occupied Rehabilitation/Reconstruction Program Guidelines Community Development Block Grant (CDBG) Page 1 of 7 TDHCA Disaster Program Owner Occupied Rehabilitation/Reconstruction Program Guidelines Effective 11/1/2006 �Y TDHCA Owner Occupied Rehabilitation/Reconstruction Program u Mayor Guy Goodson Mayor Pro-Tem Nancy Beaulieu Councilwoman Lulu Smith Councilman Andrew Cokinos Councilman Audwin Samuel Councilwoman Becky Ames Councilwoman Bobbie Patterson Kyle Hayes City Manager Adopted by the Beaumont City Council November_,2006 Housing Services Division 801 Main,Suite 225 P O Box 3827 Beaumont,Texas 77704 Phone 409.880.3763 •Fax 409.880.3125 z Page 2 of 7 �4SMFry,4 TDHCti Disaster Program VINU Owner Occupied Rehabilitation/Reconstruction Program Guidelines Effective 11/1/2006 TDHCA DISASTER PROGRAM t OWNER OCCUPIED REHABILITATION/RECONSTRUCTION PROGRAM GUIDELINES Introduction Conversion and expansion of the nation's housing stock is one of the specific objectives to be met by the expenditure of Community Development Block Grant (CDBG) funds. Title I of the Housing and Community Development Act provides that the principal beneficiaries of these expenditures should be person of low and moderate income. Affordable housing is a national priority and ranks as one of the foremost legislative agenda items. The Owner Occupied Rehabilitation/Reconstruction Program which has been designed to provide grants to low and moderate income persons residing within the Beaumont city limits and whose home is in need of repairs resulting from Hurricane Rita. The goal of the Owner Occupied Rehabilitation/Reconstruction Program is to prevent deterioration of older City neighborhoods and to provide safe, affordable housing for economically disadvantaged residents.Assistance is directed toward low/moderate income individuals who own their own homes. Purpose The purpose of the TDHCA Owner Occupied Rehabilitation/Reconstruction PRrogram is to provide financial and technical assistance to eligible homeowners who need moderate or intensive repairs, or, in specific cases, reconstruction, resulting from Hurricane Rita to keep their property safe and habitable, thereby prolonging the useful life of the structure, preserving the viability of the neighborhood and preventing slum conditions when economically feasible. Funding and Administration This rehabilitation/reconstruction activity is conducted by the Housing Services Division which is a Section of the Public Works Department. Funding for all aspects of this program comes from the Texas Department of Housing &Community Affairs (TDHCA) Disaster Program. This program is designed to assist with needed repairs resulting from Hurricane Rita. Applications 1. Applications may be obtained from the City of Beaumont's Housing Services Division, or from www.cityofbeaumont.com. 2. Complete the application process. Applications are not considered complete unless completely filled out and all supporting documentation is attached. Incomplete applications will not be considered for assistance nor placed on the waiting list for assistance. 3. Supporting documentation includes, but not is not limited to: Applicant's Certification of Disability(where applicable) A copy of your deed and proof that taxes and insurance are current Documentation verifying income,including bank statements forthe prior six months Income statements and/or check stubs (three months) Retirement IRA's Social Security determination letters Unemployment Alimony i Page 3 of 7 .* . I�q a1 Q TDHCA Disaster Program !' Owner Occu Occupied Rehabilitation/Reconstruction Program Guidelines Effective 11/1/2006 3 ��[N s? � F 9 Child support Homeowner's insurance payments Financial assistance from FEMA, Red Cross, SBA Any other source of income, payments or awards. Eligibility Criteria Eligibility for rehabilitation/reconstruction assistance is established by criteria consistent with HUD income and housing code standards, as well as local City housing goals and objectives. The program guidelines are as follows: 1. All applicants must meet HUD income eligibility requirements. 2. First priority will be given to uninsured persons age 62 and above who are also disabled and/or medically fragile.Second priority will be to uninsured single head of households. Third priority will be to underinsured persons age 62 and above who are also disabled and/or medically fragile. Fourth priority will be to underinsured single head of households. Fifth priority will be to all other qualified households on a first come, first served basis. '.Applicant Eligibility In order to be considered for rehabilitation/reconstruction assistance, the applicant must meet the following criteria: 1. The Owner must have clear title, and either reside in, or have moved out of the house temporarily with intent to move back into the house for which they requested assistance; 2. The owner must have owned their property for at least one (1) year prior to submitting an application for rehabilitation assistance; 3. Provide proof that mortgage payments are current; 4. Provide proof that taxes are current and hazard insurance is in force prior to start of construction; and 5. Total household income is at or below 80%of the current Area Median Income limits established by HUD. One Two Three Four Five Six Seven Eight person in persons in persons in persons in persons in persons in persons in persons in household household household household household household household household $28,350 $32,400 $36,450 $40,500 $43,750 $47,000 $50,200 $53,450 • income limits subject to change on an annual basis Property Eligibility Rehabilitation/reconstruction work shall be limited to those properties that are determined in need of repairs resulting from Hurricane Rita, in order to comply with the City's Standard Housing Codes. Page 4 of 7 TDHCA Disaster Program ' "I Owner Occupied Rehabilitation/Reconstruction Program Guidelines Effective 11/1/2006 �x�tio The properties must be located within the Beaumont city limits and must be the owner's principle residence. Scope of Work Rehabilitation is defined as bringing an entire structure into conformance with a pre-determined set of specifications and standards that address the entire condition of the structure. Maximum funding is limited to $65,000 (including soft costs). Rehabilitation assistance may be offered where actual development costs for needed repairs are greater than $19,250, but do not exceed $51,250. Applicant may, however, be considered for the TDHCA Emergency Repair Program or Reconstruction, where applicable. In order to document the physical condition of the home which will be rehabilitated or reconstructed a thorough inspection will be required. This inspection will be documented in writing, with drawings and photographs as needed. All items needing repair will be documented with specific measurements and locations sufficiently to create a work-write up and cost estimate. The extent of rehabilitation work specified shall be determined by the Housing Inspector's findings of Standard Housing code deficiencies and subsequent cost estimates for the necessary repairs to bring the house up to Housing Quality Standards and local health and safety codes. In some cases, additional improvements beyond minimum standards may be warranted, especially in instances where serious violations may become Standard Housing Code deficiencies within the succeeding twelve(12) months. In most cases,however,general property improvements, which may be desirable but are not required to meet Standard Housing Code, shall not exceed ten percent (10%) of the repair cost. In addition to necessary Standard Housing Code repairs, specifications may include energy conservation improvements. Rehabilitation shall be limited to "stick built" structures that have been deemed feasible for rehabilitation. Reconstruction is defined as demolition of an existing home and building anew home of similar type on the same lot. Funding for Reconstruction limited to$100,000(including soft costs), and may be offered in specific cases where the actual development costs needed to repair the existing home is greater than $51,250. Funding for reconstruction will not be approved where actual development costs are less that $51,250. Applicant may, however, be considered for the TDHCA Emergency Repair Program or Rehabilitation,where applicable. The decision to reconstruct will be determined by the Housing Inspector's findings of Standard Housing code deficiencies and subsequent cost estimates for the necessary repairs to bring the house up to Housing Quality Standards and local health and safety codes. If reconstruction is being considered, a preliminary budget should be prepared to indicate the potential cost of rehabilitation. This budget, including any inspection checklist, notes, photographs and drawings will be called the "feasibility analysis". This budget should include all major systems but need not detail individual items of cost. If the cost of rehabilitation including lead hazard inspection and reduction: i. is less than $25,000, emergency repair assistance will be offered to the homeowner. Reconstruction will not be an option and the City will prepare a detailed work write-up and cost estimate for rehabilitation adequately documented to be used as bid documents. ii. is more than $25,000 but less than $65,000 rehabilitation assistance will be offered to the homeowner and the City will prepare a detailed work write-up and cost estimate for rehabilitation adequately documented to be used as bid document. iii. where a detailed work write-up and cost estimate for rehabilitation determines needed repairs will exceed $65,000, reconstruction assistance will be offered to the homeowner. If the applicant does not desire reconstruction the City will"walk away"from the project after Page 5 of 7 Owner occupied TDHCA Disaster Program t [ Rehabilitation/Reconstruction Program Guidelines Effective 11/1/2006 l notifying the applicant that the project is not feasible and offering an explanation in writing. Lead-Based Paint Regulations Changes On September 15, 1999, HUD issued a new Federal lead-based paint regulation implementing Title X of the Housing and Community Development Act of 1992. This regulation makes many important changes in the lead-based paint requirement applicable to housing funded through HUD's Community Planning and Development(CPD) Programs. State and local jurisdictions that receive funding from the Community Development Block Grant (CDBG) Program, HOME Program, McKinney Act homeless programs and other CPD programs were required to implement the new requirements by September 15, 2000. Bid Process The proposed bid process is as follows: (A) Contractors will be referred to owners from approved contractors list.All contractors not currently on the City's approved contractors list must be approved prior to performing any work. (B) Owners will solicit bids from the approved contractors list. (C) Owner will select the contractor they wish to perform the work from the two lowest bids.Staff and the owner will review the selected contractor's bid for cost,thoroughness, reasonableness and make a final decision on accepting, modifying or rejecting the bid. As an alternative, Housing Services Staff will retain the process of completing rehab cases through the formal bid process when necessary. Rehabilitation Categories The scope of work shall be defined and limited by the cost estimate to bring the property up to Housing Quality Standards (HQS) and local health and safety codes, and other codes when applicable,except in those cases where the structure is too deteriorated to be repaired to Standard Housing Code, but needs immediate emergency repairs to make the structure habitable. Estimated costs in excess of $65,000 for repairs shall render the project economically unfeasible for rehabilitation assistance, and in excess of$100,000 under for reconstruction assistance. Proiect Selection Each applicant's property will have a cost write-up after thorough evaluation of the property's condition is made to determine the extent of work necessary to meet applicable Housing Quality Standards and local health and safety codes. If actual repair costs are less than $19,250, the applicant may be considered for the TDHCA Residential Emergency Repair Program,or if the actual repair costs exceed $51,250, the applicant may be considered for the reconstruction under the TDHCA Owner Occupied Rehabilitation/Reconstruction Program. For cost estimates falling within the defined rehab categories, work will proceed on a first come, first served basis within the established priority categories. Financial Assistance Financial assistance for rehabilitation/reconstruction work will be provided to eligible applicants in the form of a grant. Eligible applicants whose homes are situated in the 100-Year Flood Plain will be deferred to the Southeast Texas Regional Planning Commission for further review.. Limitation of Assistance All eligible applicants must live within the city limits of Beaumont. Financial assistance will be offered only once to homeowners requesting rehabilitation/reconstruction work. The TDHCA Owner Occupied Rehabilitation/Reconstruction Program is subject to availability of funds from the Texas Department of Housing & Community Affairs Disaster Program. Page 6 of 7 TDHCA Disaster Program Owner Occupied Rehabilitation/Reconstruction Program Guidelines Effective 11/1/2006 Security for Owner Occupied Rehabilitation/Reconstruction Deferred Loans Rehabilitation assistance provided to eligible applicants whose homes are situated in the 100-Year Flood Plain may be in the form of a 3-year deferred grant. Such determination will be made by the Southeast Texas Regional Planning Commission and/or the Texas Department of Housing & Community Affairs. Cancellation of Lien Lien cancellations are subject to terms and conditions set forth by the Texas Department of Housing & Community Affairs. Eligible applicants will be advised of any lien and lien cancellation requirements prior to acceptance of a deferred grant. Appeal Process The Southeast Texas Regional Planning Commission shall consider the written appeal of the applicants who feel that due process has been denied. The cause of such appeal shall be, but not limited to: 1. Denial of funding due to less than minimum or excessive rehab cost estimates exceeding program guidelines; 2. Cases in which the applicant feels.inaccurate information may have been included on the application which adversely affected their qualifications. The Housing Services Division shall advise applicants of their right to appeal and prepare the necessary documents for the Southeast Texas Regional Planning Commission's resolution. Appeals must be postmarked within ten (10)days of the date of the letter of notification rejecting the application. Page 7 of 7 �� TDHCA Disaster Program ��A�� ,■,�, Owner Occupied Rehabilitation/Reconstruction Program Guidelines Effective 11/1/2006