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HomeMy WebLinkAboutRES 92-047 i r } RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be, and he is hereby, authorized to approve the changes in the Owner Occupied Housing Rehabilitation Program as listed in the attached report. PASSED BY THE CITY COUNCIL of the City of Beaumont this the // day of .? ,c 1992. - Mayor - RENTAL REHABILITATION PROGRAM DESCRIPTION The City of Beaumont, Texas plans to use the Rental Rehabilitation Program funds to operate a cost effective rental property rehabilitation program as part of the community development and revitalization strategies. The City will make the funds available in the form of grant to cover 49% of the rehabilitation, with the remainder of the costs supplied from private sources. Privately owned, residential rental properties that require moderate rehabilitation will be eligible for consideration for a grant. The City's Housing Services staff will administer the program, with the cooperation of the Beaumont Housing Authority. A complete description of the project selection and rehabilitation process is detailed in the Proposal Selection/Program Implementation Section. The Beaumont Housing Authority will be responsible for administering the Section 8 Housing Vouchers/Certificates and will make application independently for the Section 8 housing resources. Neighborhood Selection After considerable deliberations, the City has opted to select the Community Development Block Grant Strategy Area for the implementation of the Rental Rehabilitation program. The CDBG Strategy Area includes Census Tracts 1.03, 6, 7, 8, 9, 10, 11, 12, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23 24, 25 and 26, all of which have a majority of Low/Moderate Income persons according to the 1 1980 Census. The total population for the Community Development Strategy Area is 49, 198 persons, with 63% of the total population being low to moderate income. The ethnicity of the Community Development Strategy Area is 70.3% Black, 26.9% White, and 2 .8% Other. Of the total population, 4. 2% are of Spanish Origin. There are 17,825 households in the Strategy Area and 7, 181 (or 40%) are families with children. Thus, the Strategy Area has a high number of large- family, lower income households. Prior to 1950, 53. 3% of the housing stock was constructed in the Strategy Area, with another 24.5% built prior to 1960. A Housing Condition Survey indicated 69.8% of the Strategy Area housing units were substandard. The tenure of the housing units in the Strategy Area is 48% owner occupied, 42% renter occupied, and 10% vacant. The substantial number of vacant and rental units will provide the necessary housing units for the successful implementation of Beaumont's Rental Rehabilitation Program. The City's Housing Services Staff is presently operating a . Housing Rehabilitation Program in the strategy area and will be able to efficiently continue to implement the Rental Rehabilitation Program with no problem or delays. The Beaumont Housing Authority has a Section 8 program functioning in the selected strategy area and the rents are regulated through the fair market rent concept with little difficulty keeping rents within the Fair Market Rent limitations. In addition, it has been the experience of the City Staff that 2 rents in strategy area are stable and affordable to lower income residents. The character of the selected strategy area indicates that the rents will remain affordable to lower income residents for at least a five year period. Lower Income Program Benefit Since the program will be implemented in an area that has a majority of lower income residents, the City foresees no problem with meeting a 70% lower income benefit threshold. The City selected the area to assure benefit of the program to lower income residents of the community. The Beaumont Housing Authority will be responsible for the administration of the Section 8 Housing Vouchers/Certificates. These Vouchers/Certificates will be available to assist low income persons displaced or rent burdened during the rehabilitation process. However, anyone who meets. the qualifications and wishes to rent the unit, may do so, with or without a Section 8 housing assistance. Tenant Assistance Plan The City of Beaumont's relocation/displacement policies and guidelines for relocation/displacement payments and assistance made to an individual or families displaced by activities that are established under the Uniform Relocation and Acquisition Act in accordance with HUD regulations in 24 CFR Part 42 and the Rental Rehabilitation Program requirements at 24 CFR 511.10 (h) were adopted by City Council in 1975 pursuant to Section 14-60D of the Code of Ordinances for the City of Beaumont, Texas. 3 i Very Low-Income Benefit The City will make every effort to ensure that units occupied by low-income persons will be rehabilitated. In addition, the Beaumont Housing Authority has indicated that a majority of the persons on the Section 8 Housing waiting list are very low-income persons. Thus, the program's implementation should allow for the benefit of very low-income persons living in substandard units. Large Family Benefit The City shall ensure that at least 70% of the units rehabilitated will be large-family units (two or more bedrooms) . This task will be accomplished through the program implementation process. The Beaumont Housing Authority has informed the City that the Section 8 Housing waiting list is made up primarily of large size families requiring a unit with . 2 or more bedrooms. In addition, the Beaumont Housing Authority has assured the City that the Section 8 Housing waiting list is comprised of a sufficient number of families that would require a three bedroom or more unit. It is apparent that the Beaumont Housing Authority's waiting list will ensure attainment of the 70% threshold for two bedroom units and 15% threshold for three bedroom units. Proposal Selection/Program Implementation The City will solicit proposals from all interested parties throughout the Community Development Strategy Area. An application for funding will be completed by the property owner and submitted to the City's Housing Services staff. The funding proposals are reviewed on a first come first served basis and assigned a case 4 number. Once the application has been certified as complete, the City's Housing Services Inspector will inspect the property and identify the Standard Housing Code (MHC) and Energy Conservation violations. These violations must be corrected and included in the plans, specifications and cost estimates developed by staff. The plans and specifications are given to the property owner, and he or she assigns a qualified contractor from the City's approved contractor list. When the proposal has been certified by the City's Housing Services staff and the property owner, the grant package will be submitted to the Housing Services Board for approval. The City's Housing Services Staff will be responsible for following the project through construction to the final inspection, and will certify that the project is 100% complete and that it satisfies the Section- 8 moderate rehabilitation requirements and the City's minimum housing code. The maintenance and management of the units will be the responsibility of the property owners. However, the Beaumont Housing Authority will administer the housing services contract and continue to monitor for housing compliance standards. Neighborhood Preservation The City of Beaumont has committed funds to improve the physical environment, upgrade housing conditions and expand housing opportunities, and improve the quality of life in the Community Development Strategy Area. The City has concentrated revitalization efforts in the Community Development Strategy Area in an attempt to improve older, deteriorated neighborhoods. Since 5 1975, the City has allocated and expended approximately 21 million in CDBG funds on continued neighborhood revitalization efforts in the Community Development Strategy Area. Projects completed or ongoing activities in the Community Development Strategy Area include street rehabilitation, new concrete curb and gutter streets, park improvements, water line improvements, demolitions of dangerous structures, code enforcement, construction of new city owned facilities, day care facilities, commercial rehabilitation activities, economic development activities, and rehabilitation of private properties. The Rental Rehabilitation Program will supplement the efforts already undertaken to revitalize the Community Development Strategy Area and to expand housing opportunities for lower income residents. Affirmative Marketing In accordance with the Regulations of the Rental Rehabilitation Program (Section 511.10 [m] [2] ) , and reinforcement of the City of Beaumont's commitment to non-discrimination and equal opportunity in housing, the City has established procedures to affirmatively market units rehabilitated under the Rental Rehabilitation Program. The procedures are intended to further the objectives of Title VIII of the Civil Rights Act of 1968, Executive Order 11063, and the City of Beaumont's Fair Housing Ordinance No. 79-54 as amended. The following outlined procedures are intended to assist the owner in advertising vacant units to persons who may otherwise not be aware of a unit's availability: 6 1. Owners will advertise vacant units in the local newspaper, include the "Equal Housing Opportunity" logotype or slogan in all advertisements and maintain records of advertisements. 2 . Owners will provide, as part of the lease application, information on fair housing laws and maintain records of any potential tenants. 3 . Owners who use leasing agents or have resident managers shall display the Human Relations Commission Fair Housing Poster in a conspicuous place within the managers/agents office. 4. Owners will notify organizations specified by the Rental Rehab Program Coordinator that vacancies exist in rehabilitated units. These organizations will serve persons who may not normally apply for housing without special outreach. If possible, these organizations shall be notified at least two weeks before a vacancy is to be filled. Owners are not expected to hold units vacant in conjunction with affirmative marketing efforts. The Housing Services Staff has developed a system for monitoring the affirmative marketing efforts of the owners. Staff will periodically interview owners and tenants and will request to review the affirmative marketing records maintained by owners. In addition, the Staff has participated in workshops with owners, local realtors and civic organizations to explain the Beaumont Fair 7 Housing Ordinance. If an interview determines that the owner has failed to comply with the affirmative marketing requirements, the case will be referred to the Fair Housing Officer for investigation. The Fair Housing Officer will review discrimination complaints and refer persons to the appropriate agencies or assist them in taking appropriate actions. Statements of Certification The City of Beaumont, Texas hereby certifies to comply with Provisions of the Rental Rehabilitation Program pursuant to 24 CFR Part 511.20 (c) 24 CFR, Part 24 Subpart F, and 54 FR 52070. See attachment A. City of Beaumont Contact Person: Danny Daniels Housing Services Administrator P. O. Box 3827 Beaumont, Texas 77704 (409) 880-3763 8