HomeMy WebLinkAboutRES 09-316 RESOLUTION NO. 09-316
BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF BEAUMONT:
THAT the City Council hereby adopts the guidelines for the Owner-Occupied Rehabilitation
Program, substantially in the form attached hereto as Exhibit "A."
BE IT FURTHER RESOLVED THAT the City Council approves the allocation of
funding in the amount of$300,000 from the 2009 HOME Program. A public hearing was
held on October 6, 2009, to receive public comment on the proposed guidelines and
funding.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 13th day of
October, 2009. '®�`� °�����
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City of Beaumont
Proposed Owner-Occupied Rehabilitation Program Guidelines
1. PURPOSE OF PROGRAM
A. The purpose of the Owner-Occupied Rehabilitation Program (OCC) is to provide
housing assistance to 80% Area Median Family Income (AMFI) and below
families residing in and around the Hope VI revitalization area (Census Tracts 6,
7 and 9) in Beaumont. Assistance may be provided in other areas inside the
Beaumont city limits when feasible. Program Administrator and Department
Head review will be required in such instances. Financial assistance will be
provided for the repair, rehabilitation, or reconstruction of substandard single-
family homes located in target areas identified in Section 8 of these guidelines.
The focus of the repair, rehabilitation, or reconstruction is to provide safe, decent,
and sanitary housing by bringing eligible housing units into compliance with all
health and safety codes. When repairs are completed the minimum standard for
repairs will be compliance with all applicable local codes and ordinances
including the International Residential Code (IRC) (with windstorm provisions)
which will be used as required and as appropriate. When new construction is
completed, the IRC including windstorm measures and appropriate energy codes
will be utilized.
In special cases, and only when extant conditions would mean that replacing a
housing unit on the same site would continue or exacerbate an unsafe condition,
homeowners, who otherwise meet the requirement of being owners of a
permanent residence, will be given assistance to acquire and newly construct a
housing unit on a safe site. Examples of unsafe conditions shall include, but not
be limited to, housing located in a special flood hazard area, unsafe soil
conditions, environmental hazards that cannot be mitigated, or other conditions
that cannot be changed and would continually put occupants in harm's way. The
City of Beaumont (City) shall make every effort to ensure that after-rehabilitation
repairs and improvements supplement the structurally sound housing stock in the
area served and that the housing is of fitting design and quality so as to improve
the neighborhood in which they are completed. The City of Beaumont and any
contractors/sub-contractors will administer the Program in accordance with these
Housing Guidelines (Guidelines).
2. DESIGNATED AUTHORITY TO ADMINISTER PROGRAM
This program shall be governed by the City of Beaumont 2008 Annual Action Plan and
the City's 2005 Consolidated Plan, and operated in accordance with all applicable rules
and regulations of the U. S. Department of Housing and Urban Development ("HUD").
The Program shall be under the direct supervision of the City's Housing Manager or
his/her designee.
3. TYPE OF ASSISTANCE AND ACTIVITIES
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A. ELIGIBLE ACTIVITIES
i. Rehabilitation — Rehabilitation shall be 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. At a minimum, the rehabilitated
portion must comply with local building codes and standards, and upon
completion, the entire structure must comply with housing quality standards
(HQS) and local health and safety codes. Rehabilitation shall be limited to "stick
built" structures that have been deemed feasible for rehabilitation.
ii. Reconstruction—Reconstruction shall be defined as the demolition, removal, and
disposal'of an existing housing unit and the replacement of that unit on the same
lot with a unit that complies with the universal design features in new
construction established by §2306.514, Texas Government Code, energy
standards as verified by a RESCHECK certification, and the International
Residential Codes, as required by Subchapter G, Chapter 214, Local Government
Code. Reconstruction of a housing unit should be of a similar type structure. For
example, a stick built housing unit may be replaced with a stick built unit.
Manufactured units are not eligible for rehabilitation or reconstruction.
iii. Replacement—Replacement shall be defined as the replacement of housing taken
or demolished by government action. Replacement will be for a comparable unit,
not to exceed three bedrooms, two baths, at a location that is not within the 100
year flood plain. If the replacement unit is newly constructed, the unit must at a
minimum comply with the universal design features in new construction
established by §2306.514, Texas Government Code, energy standards as verified
by a RESCHECK certification, and the International Residential Codes, as
required by Subchapter G, Chapter 214, Local Government Code.
iv. Demolition — Shall be defined as activities necessary to alleviate conditions in
slum and blighted areas. The City or its contractors/sub-contractors will use all
available resources, including Housing Authorities, Habitat for Humanity,
Community Housing Development Organizations, and other non profit
organizations, to provide displaced persons with access to decent, safe, sanitary,
and affordable housing in the City's service area.
B. FINANCIAL ASSISTANCE
i. Rehabilitation and Reconstruction assistance will not be provided in a floodplain.
Replacement assistance is available to eligible home owners for construction on a
lot not located in a 100-year flood plain.
ii. The maximum amount of assistance to be provided to an applicant for Owner-
Occupied Rehabilitation shall be $65,000 (Sixty-five thousand dollars). The level
of assistance must not be greater than the 221(d)3 limits for Beaumont.
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W. The maximum amount of assistance to be provided to an applicant for
Reconstruction shall be $100,000 (One hundred thousand dollars).
iv. The maximum amount of assistance to be provided to an applicant for
Replacement housing shall be identical to that of reconstruction.
C. INSPECTIONS
i. In order to document the physical condition of the home that will be repaired,
rehabilitated or reconstructed through the Owner-Occupied Rehabilitation
Program, 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
sufficient to create a work-write up and cost estimate.
D. PROGRAM PARAMETERS
i. The minimum amount of assistance that may be provided to any applicant shall be
One Thousand Dollars ($1,000.00).
E. FEASIBILITY ANALYSIS
i. For each unit assessed under the Program, a preliminary budget will be prepared
to indicate the potential cost of emergency repairs, rehabilitation, or
reconstruction. 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,
demolition, and site improvements required by environmental conditions:
(1) Is less than $51,250 for hard costs, the City of Beaumont will offer
Rehabilitation assistance to the applicant. 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.
(2) Is more than $51,250 for hard costs, the City will offer Reconstruction
assistance to the applicant.
u. If feasibility analysis indicates a budget in excess of$51,250 based on the above
estimate for rehabilitation and the applicant does not desire reconstruction, the
City should "walk away" from the project after notifying the applicant that the
project is not feasible and offering an explanation in writing.
4. PARTICIPANT ELIGIBILITY
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A. INCOME LIMITS
To be eligible for assistance, all applicants must meet the following criteria.
i. Total household annual gross income may not exceed 80% Area Median Family
Income(AMFI), adjusted for family size, as published annually by HUD.
ii. All income will be verified utilizing third party verifications.
W. The City will conduct income verifications in accordance with 24 CFR Part 5
requirements using procedures as stated in the Technical Guide for Determining
Income and Allowances, 3rd Edition (HUD -1780-CPD).
The most current income limits, published annually by HUD, shall be used to verify the
income eligibility of each household applying for assistance. Under no condition can a
household that exceeds 80% AMFI receive assistance.
B. PROPERTY REQUIREMENTS
i. An applicant must own the property and occupy the property as his or her
principal place of residence. In order to be eligible, the applicant must
demonstrate property ownership through deeds and/or property records. The
applicant is considered the owner if he or she:
(1) Possesses valid fee simple title to the property; or
(2) Possesses a valid, recorded life estate in the property; or
(3) Possesses a valid, recorded warranty deed; or
(4) Maintains a 99-year leasehold interest on the property;
fl. In the absence of proof of property ownership described above, to be eligible for
assistance, the applicant household must provide:
(1) Proof of paid property taxes for all applicable taxing years.
(2) Proof of paid homeowner's insurance (must be current at the time
applicant is approved for assistance)
iii. Contracts for Deed and/or Contracts for Sale are NOT acceptable forms of
ownership.
C. PROPERTY TAXES
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i. All delinquent property taxes shall be paid prior to the award for
rehabilitation/reconstruction assistance; or the property owner must have qualified
for and received a tax deferral as allowed under Section 33.06 of the Texas Tax
Code. A written verification of the tax status must be placed in each applicant's
file. For verifications conducted via telephone, a telephone confirmation form
must be completed including, but not limited to, date of contact, name of contact,
and phone number of contact.
5. PROGRAM MARKETING
A. The availability of the Program funds shall be publicized via:
i. Press releases in the local newspapers, including but not limited to the following:
(1) Beaumont Enterprise;
H. Public Service Announcements (PSA's), which are developed and distributed to
local broadcast media, including but not limited to the following:
(1) KLVI , KOGT, and KOLE radio stations;
(2) KFDM, KBMT, KJAC and FOX television stations.
(3) City of Beaumont public access station.
W. Informational pamphlets, public notices, and outreach targeting special needs
groups distributed by public or non-profit organizations, including but not limited
to the following:
(1) Places of worship in Beaumont.
(2) Beaumont Public Libraries.
(3) City of Beaumont Bulletin Board.
iv. The City of Beaumont is strongly committed to providing information in English
and Spanish. Every effort will be made to make applications available in English
and Spanish. A Spanish interpreter will be made available to assist in the
application process.
B. AFFIRMATIVE MARKETING PLAN
i. In addition to marketing through widely available media outlets, The City will
take additional measures to affirmatively market the Owner-Occupied
Rehabilitation Program services, as follows:
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(1) The City will contact and market to the following local organizations that
provide unique access for persons who are considered members of a
protected class under the Fair Housing Act:
(a) NAACP;
(b) League of United Latin American Citizens (LULAC);
(c) Catholic Charities
(2) The City will advertise with the following media outlets which provide
unique access for persons who are considered members of a protected
class under the Fair Housing Act including:
(a) Ethnic newspapers and/or radio stations
(3) In addition, The City will take the following measures to make the
program accessible to persons who are considered members of a protected
class under the Fair Housing Act:
(a) Hold informational meetings in buildings that are compliant with the
Americans with Disabilities Act (ADA) and provide special assistance
for those who are visually impaired when requested.
fl. Documentation of all marketing measures used, including copies of all
advertisements and announcements, will be retained by the City and made
available to the public upon request.
iii. Whenever possible, the City will use the Fair Housing logo in advertising, post
Fair Housing posters and related information, and, in general, inform the public of
its rights and obligations under Fair Housing regulations.
iv. The City will accept and/or make applications available as follows:
(1) At Beaumont City Hall, 801 Main St., Suite 201, Beaumont, Texas
(2) Via regular mail at P O Box 3827, Beaumont, TX 77704.
(3) Length of time, days, and hours that applications will be available,
including but not limited to:
(a) Online 24 hours a day;
(b) During regular business hours at Beaumont City Hall;
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V. The City may select applicants from an existing waiting list. The next eligible
applicant on the waiting list will be offered Owner-Occupied Rehabilitation
assistance, if funds are available, after the applicant before them on the waiting
list either declines assistance or is deemed ineligible.
(1) The City shall notify all applicants in writing of their eligibility status.
(2) The City shall notify the applicant in writing if the requested emergency
repair, rehabilitation, or reconstruction is deemed ineligible or not feasible.
(3) The City shall be the sole arbiter of the applicant's eligibility and the
feasibility of any activity provided under the program.
(4) The decisions of the City shall be final.
(5) Financial assistance to the applicant will be provided in the form of a
grant.
6. METHOD OF APPLICATION
A. The Owner-Occupied Rehabilitation Program City and/or his/her designee shall
be responsible for advertising the availability of the program and for accepting
applications.
B. The City will accept applications from interested households as long as funds are
available from the U. S. Department of Housing and Urban Development. All
applications will be date-stamped as they are received, and will be reviewed for
completeness in the order in which they are received.
C. Applications will be screened for completeness and all information related to
program eligibility, including but not limited to employment, income, assets, and
liabilities, will be verified. The City and/or his/her designee shall be responsible
for determining the eligibility of each applicant.
D. The funding decisions of the City shall be final.
E. All applicants selected for assistance shall be interviewed to determine the
applicant's housing needs and types of eligible repairs required. A written
agreement will be executed between the City and the applicant outlining the
responsibilities and terms of the assistance.
7. FIRST-COME, FIRST-SERVED WAITING LIST
A. All Eligible Participants
i. All eligible applicants will be rated on a first-come, first-served basis so that a
priority of funding might be established. Based on the resident's need, the City
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will determine which funding source best fits that need and how and when the
assistance is granted in accordance with applicable program guidelines. With this
understood, priority will be given to applicants residing in Census Tracts 6, 7 or 9
who are:
(1) Elderly�a) and/or disabled(b)
(2) Single head of household
(3) All other applicants
Furthermore, the City of Beaumont (and its sub-contractors) will not give
preference to or discriminate against any person on the basis of race, color,
religion, national origin, sex, disability, or familial status.
(a) Elderly: age 62 or over
(b) Disabled:
If the applicant is under age 62 and is receiving Supplemental Security
Income (SSI), this is sufficient evidence of disability. Retain a copy of the
SSI award letter in the activity file.
B. In addition, repairs that prevent further damage to selected homes will be
completed first, when possible.
C. Incomplete applications will not be placed on a waiting list until all required
documents for the application are provided to the City and the application is
verified and certified as program eligible.
D. Incomplete applications will not be accepted.
8. PROPERTY REQUIREMENTS
A. The property must be a single-family dwelling located in Census Tracts 6, 7 or 9
in the Beaumont city limits.
B. Assistance is not available for properties located in a flood zone.
C. The applicant must provide evidence of homeownership.
D. After assistance is provided, at a minimum, the dwelling must be in compliance
with local building codes and zoning ordinances and applicable construction or
livability standards.
i. Newly constructed homes (including reconstructs) must meet:
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(1) Energy standards as verified by a RESCHECK TM certification. The
certification must be available in the City's file prior to purchase.
(2) The International Residential Code as 11 of the IRC as required by
Chapter 388 of the Health and Safety Code as applicable.
E. Any housing unit built before 1978 must be inspected for hazards associated with
the presence of lead-based paint or may be presumed to have lead-based paint
hazards. Proof of notifications, work completed and clearance examination must
be available for the City's file.
F. Housing units located in an area where Federal Assistance is not permitted by the
Coastal Barriers Resource Act or within runway clear zones of either a civil or
military airport are not eligible properties.
10. ELIGIBLE IMPROVEMENTS & EXPENSES
A. Rehabilitation funds shall be used for repairs and/or replacements that are
necessary to bring the structure into compliance with applicable local codes or
standards and HQS.
B. As required to complete construction services, necessary "project soft cost" and
administration cost as defined by the City and not exceeding the predetermined
program limits are allowable costs.
C. All sites must be cleaned before any construction activity can begin.
D. Rehabilitation funds may also be used for general improvements that are
"reasonable and customary" except as excluded herein. All improvements must be
physically attached to the property and be permanent in nature.
E. Owner-Occupied Rehabilitation funds may not be used for luxury items. Luxury
items include, but are not limited to, jacuzzis, hot tubs, fireplaces, swimming
pools, fences (other than those required for security), television, and satellite
dishes.
F. Air conditioners and heating systems, water heaters, stoves, and refrigerators are
eligible for replacement under the Owner-Occupied Rehabilitation. Appliances
and housing components that are not integral to the structure of the home such as
window unit air conditioners, washers, dryers, dishwashers, detached garages and
carports are not eligible.
G. The use of lead-based paints is prohibited. Any units built prior to 1978 will be
inspected and assessed for any hazards associated with the presence of lead-based
paint by a State of Texas certified lead inspector/assessor as required. Each
family will be notified as to the hazards of lead based paint. Where any hazard has
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been detected, the owner shall be notified. Feasibility analysis of reducing the
lead hazards will be included as part of any feasibility analysis that is conducted.
If rehabilitation and lead hazard reduction is not feasible a reconstruction may be
proposed.
H. All city building permits shall be obtained by the contractor at his/her expense
and may be included as part of the bid.
11. PARTICIPANT APPROVAL AND RESPONSIBILITIES
A. After the applicants have been approved for assistance by the City or his/her
designee, a property inspection must be conducted to determine the work
necessary to upgrade the structure to minimum Program standards. All work
done must meet local building codes and HQS at a minimum. Newly constructed
housing must also meet IRC and energy code requirements. Work write-ups will
be required for all applicants awarded. Reconstruction and replacement projects
will also require plans and specifications. "Before" and "After" pictures shall be
taken by the City to provide a photographic record of the necessary structure and
improvements and must be submitted with all work write-ups and copies of the
initial property inspection.
B. Applicants will be given the opportunity to accompany the City, or his/her
designee on the work write-up inspection in order to discuss the proposed work
items. When the work write-up has been completed and a cost estimate prepared,
the City or his/her designee shall discuss the scope of the work and the effect of
the cost estimate with the applicant. If the applicant agrees with the scope of
work and to his/her responsibility regarding any additional funding, the applicant
shall sign off on the final work write-up that is used in the bidding process. The
City or his/her designee shall agree not to omit any work items that are necessary
to bring the structure up to program standards as previously established herein.
C. Upon completion of the work write-up, the City, and/or its designee, shall solicit
competitive bids for the proposed work from a list of contractors interested in
Program participation. The City, and/or its designee, shall select the qualified
contractor and shall forward the bids to the City for review. The bid must be
within 10% of the initial cost estimate. If the bid is too high, one of the following
will occur: 1) request the bidder to review his or her bid to determine if any items
were priced inappropriately and to revise his/her bid accordingly; 2) agree to pay
the difference; or 3) re-bid the project in its entirety. If errors are confirmed in the
original cost estimate, appropriate estimate adjustments shall be made to
effectively compare the bids to this estimate. All contractors must meet all City
requirements and must be approved by the City prior to execution of the
rehabilitation contract. The contractor must meet and comply with all contractor
requirements as hereinafter established for this Program.
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D. After the work write-up has been completed, a before-rehabilitation appraisal
valuation will be obtained from the Jefferson County Appraisal District in order to
determine that the after-rehabilitation value does not exceed the maximum
allowed (203 b limits).
12. CONTRACTOR SELECTION
A. CONTRACTOR QUALIFICATIONS
i. Contractors are responsible for, and must meet minimum requirements as follows:
(1) All contractors shall carry and provide proof of a current general liability
policy of at least one hundred thousand dollars ($100,000). This policy
should cover all work done under the Owner-Occupied Rehabilitation
Program and be pre-paid throughout the contract period. No geographical,
time or other limitation that excludes the Owner-Occupied Rehabilitation
Program will be acceptable.
(2) The contractor and sub-contractors must not be debarred, suspended, or
ineligible according to the U.S. General Services Administration's List of
Parties Excluded from Federal Procurement or Non-Procurement
Programs. Verification of contractor eligibility from the Texas
Department of Housing and Community Affairs is not required prior to
awarding any contract to the contractor unless federal labor standards
requirements apply.
(3) All contractors must be able to provide proof of performance and/or
payment bonds.
(4) Whenever possible, the City will give opportunities to Historically
Underutilized Businesses (HUBs) and will make an affirmative effort to
encourage bids from such contractors.
(5) Whenever possible, opportunities shall be given to locally owned
businesses and low-income residents of a given area.
u. In addition to these requirements, the City may establish their own fair and evenly
applied criteria for contractor selection. These may include but are not limited to:
(1) Workers compensation insurance;
(2) Verification of quality of work references;
(3) Verification of credit references; and
(4) Verification of established line of credit.
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iii. An approved contractor list will be created and will be accessible to all applicants
who meet the fair and reasonable criteria pre-established by the City. Such criteria
will be made available in writing upon demand by interested parties.
13. CONTRACTOR PROCUREMENT
A. Contractors will be selected through an itemized bid process. A sealed bid is the
preferred method of selecting bids. The home owner may select any bid that is
within 10% of the cost estimate.
B. Contractors will adhere to the terms of the rehabilitation contract including
performance standards and the general specifications. Whenever the need for
clarification results in a change, such issues will result in a written change order
prior to any work being completed. No work will be approved except that which
is established in the contract and in written approved change orders. Any
unforeseen or hidden condition should be reported to the City immediately. Any
item that conflicts with these standards should be reported immediately by the
contractor.
C. Whenever possible the contractor will make an effort to minimize the impact of
the construction on the applicant. Work shall be carried out swiftly and directly.
Electric, water, sewer and gas service will not be interrupted for more than twelve
(12) hours without written approval by the applicant being assisted with Owner-
Occupied Rehabilitation funds. Heat will be provided at all times during winter
months. Doors, windows and any other large openings or air leaks will be
repaired on the same day. The work area shall be secured at all times.
D. The work area shall be left clean and free from clutter at the end of each day and
the contractor, not the applicant, will be responsible for storage of materials and
tools.
E. Prior to the commencement of construction, the applicant will arrange to move
and store any valuable personal property that might be damaged during the course
of construction. If property is damaged through negligence of the contractor,
arrangements will be made by the contractor to reimburse the applicant.
F. The contractor shall use the site and its facilities only for specified construction.
The electrical, water, sewer and gas systems shall be used only for construction
purposes and during the construction phase only.
G. Any discrepancy in the contract documents shall be brought to the attention of the
City immediately.
H. Failure of contractors to meet the specified criteria can result in:
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i. Contractors not being eligible for payment, and will not become party to any
future Owner-Occupied Rehabilitation Program funded projects.
I. The contracting sequence for housing rehabilitation projects shall be: Invitation
to Bid, Bid Opening, and Contract Award.
i. Within ten (10) days of notification of the contract award, the successful bidder
shall provide the City with:
(1) a list of sub-contractors, and
(2) certificates of insurance.
(a) certificates of insurance from the issuing company will show current
coverage in the amount stipulated in the contract documents and with a
thirty (30) day notice of cancellation of insurance to the City for:
general liability with completed operational coverage, vehicle liability,
and statutory workman's compensation (as required).
J. The contractor shall begin work within ten (10) days of receiving the issuance of
the Notice to Proceed.
14. CONTRACTOR REQUIREMENTS
A. The number of work days shall be set out in the contract. Upon completion of the
work acceptance by the City and applicant, the Certificate of Final Inspection is
issued and the Warranty Period begins.
B. Thirty (30) days after the Certificate of Final Inspection date, the statutory amount
retained is released to the contractor, except in cases where it is determined that
the retained should not be released.
C. It is recommended that payments are made when a project reaches 33%, 66%, and
100% completion and at 30 days after a Certificate of Final Inspection is issued.
Alternatively, a contractor may opt for payments to be made when a project
reaches 50% and 100% completion.
D. All payment requests will be made in writing by the contractor to the City and
will include a list of items, their costs, and a sum of the item costs.
E. The work to be paid should be based solely on completed items from the schedule
of values submitted by the contractor prior to construction or the Itemization of
Bid Form if no schedule is submitted.
F. The City will inspect such work as soon as possible (usually within one business
day) from receipt of such request.
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G. The City will provide a completed Contractor Request for Payment form to the
Contractor to sign for the work which payment is authorized and will then request
the applicant to execute the Contractor Request for Payment form. Payments will
be made thereafter.
H. All materials used shall be new (unless otherwise specified in the Owner-
Occupied Rehabilitation Program Specifications Guide) and of good quality. All
work shall be done with skilled craftsmen and accomplished with care. Contractor
shall provide samples to the applicant for selection for all materials as cited in the
individual specifications and provide reasonable time to the applicant to make
selections. Contractor shall submit a letter to the City, signed by the applicant,
stating that the applicant approves of colors and quality of items such as, but not
limited to: paint, flooring materials, brick, shingles, vinyl siding,
door/window/drawer hardware, and counter tops.
I. Upon completion of construction, the contractor will:
i. remove all construction debris from the site;
u. clean and mop all resilient floors;
iii. clean all new and existing paint from other finished surfaces including window
glass and mirrors;
iv. leave all newly installed items in operating condition;
V. light gas water heater pilots, stove/oven pilots and gas heater pilots;
A. start all other electrical and mechanical systems;
vii. put all hardware in operating condition;
Ail. deliver new keys to applicants if hardware is installed.
J. Discovery of defective elements made known to the contractor before or during
the construction process shall be brought to the immediate attention of the City in
writing. When repairs are made, the repairs shall reasonably match the
surrounding materials in original design and dimension as approved by the City.
K. Where additional work is necessary to make repairs or to correct unforeseen
dangerous conditions, the contractor shall submit to the City a proposal consisting
of what type of work is needed, the cost of such work, and the time necessary for
such work to be completed. Unless it is determined there exists an immediate
health and safety danger, NO WORK SHALL BE AUTHORIZED until agreed
upon in writing by the applicant, contractor, and the City.
L. Compensation for additional work will be negotiated in the following manner:
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i. the deletion of work proposed, but not started; or if that is not possible,
ii. an increase to the dollar amount of the contract (if funds are available).
M. No other work shall be done to the project other than the work agreed upon in
writing by the applicant, the City and contractor or as necessary to remove
immediate health and safety dangers during the construction phase.
N. Contractor will be responsible for determining utility needs, to provide adequate
sanitary facility(s) and to safely operate equipment on site.
15. PRE-CONSTRUCTION CONFERENCE
A. The City shall conduct a pre-construction conference with the contractor and the
recipient. The terms of the proposed rehabilitation contract will be explained
along with the roles of the City and the applicant. Additionally, the City will
explain the inspection procedures, completion requirements, and payment
procedures. At the pre-construction conference, the City shall have the following
documents properly executed by both the applicant and the contractor: 1) the
Notification of Lead-Based Paint form; 2) the Pre-construction Conference
Report; and 3) the Contractor's Non-Kickback Certification. In addition, exterior
and interior"before"pictures will be taken and placed in file.
B. Prior to adjourning the pre-construction conference, the City shall present the
rehabilitation contract to be executed by the applicant and the contractor. Upon
executing the rehabilitation contract, the contractor will be provided with a
written Notice to Proceed. This Notice to Proceed will allow for a ten (10) day
start period from the date of the notice and shall also stipulate the number of days
allowed for completion of the work.
C. Each rehabilitation contract executed with a contractor shall contain a completion
date and provide for liquidated damages if the contractor fails to meet such
completion date.
16. INSPECTIONS AND CONSTRUCTION PAYMENTS
A. The City will assist the applicant in ensuring that all contracted work is completed
prior to payment and that such work was performed in an acceptable manner. To
accomplish this, the City will engage Inspector to conduct an initial inspection at
work write up and a progress inspection at 33% and 66% (alternatively 50% and
100%) completion, any additional inspections deemed necessary, and a final
(100%) inspection upon completion of all of the work, noting deficiencies in
written reports and keeping these reports in the project case files.
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B. The contractor may submit an initial partial payment request upon completion of
33% of the work. A maximum of three partial payments will be allowed. Final
payment may be requested upon full completion of the work. The contractor will
only be paid for the work completed, not for stored materials. Advancing Owner-
Occupied Rehabilitation funds to a contractor is prohibited. A ten percent (10%)
retainage will be withheld and such retainage will not be released until final
payment is made or until the 30th day after final payment is made.
C. Where applicable, permits may be required for work to be done on
Mechanical/Electrical/Plumbing/Structural (MEPS) systems. Any MEPS work
that requires a permit must be performed under the supervision of a licensed
tradesman and the work shall be inspected by a licensed inspector for the
appropriate trade to ensure that work is in full compliance with applicable local
codes.
D. Where applicable, building permits will be required for building construction
work and the building inspector for that area will inspect the job in accordance
with the area's normal building inspection requirements.
E. In the event a change order is deemed necessary, contractor must request a review
by the City and upon a determination by the City that such change order is
necessary, a written change order must be executed between the applicant and the
contractor. All change orders must be approved by the City prior to the contractor
proceeding with the work.
17. CONTRACT COMPLETION
A. Upon completion of the contracted rehabilitation work, the City's Inspector shall
conduct a final inspection of the structure when requested by the contractor. If the
inspection reveals that corrective work is required on any improvements covered
in the contract, the City's Inspector shall prepare a punch list for the contractor.
After all work, including the punch list, has been completed to the satisfaction of
the City's Inspector and the applicant, and the work is accepted, the City shall
issue a fully executed Certificate of Completion and Final Inspection form.
B. Upon completion of the Certificate of Final Inspection, contractor shall ensure
that the following documents are submitted to the City:
i. Statements from all subcontractors involved in the project;
ii. Contractor's Final Invoice form;
iii. Contractor's Non-Kickback Certification;
iv. Release of Liens; and
V. all contractor and manufacturer warranties.
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C. After receipt of these documents, the City shall cause a final check (less 10%
retainage) to be issued to the contractor. Upon receipt of the final check the
contractor shall execute the Receipt of Final Payment, and this will effectively
constitute completion of the project.
D. After 30 days from final completion, the City shall conduct a post-inspection
along with the applicant and contractor. If no discrepancies are found during the
post-inspection, the City will approve the release of the 10% retainage to the
contractor. However, if discrepancies are noted, the City shall withhold retainage
in an amount equal to one and one-half times the value of the work remaining to
be done. Upon completion of this work, another post-inspection shall be
conducted, and if the work is completed to the satisfaction of the City and the
applicant, the City shall approve the release of the withheld retainage; otherwise,
the same process is repeated.
E. Following the completion and acceptance of the rehabilitation work, the City shall
take "after" rehabilitation pictures (interior and exterior) to provide a
photographic record of the structure and improvements accomplished.
F. Contractor Warranties
i. All work performed by the rehabilitation contractor shall be guaranteed for a
period of one (1) year. Such warranty shall be stipulated in the construction
contract between the contractor and the applicant. For a period of one (1) year, the
applicant may require the contractor to correct defects or problems arising from
his or her work under this contract. Should the contractor fail to do so, the
applicant may take any necessary legal recourse as prescribed in the rehabilitation
contract. A reasonable amount of time shall be given to correct the problem, but
the contractor shall contact the applicant within two (2)business days.
18. FILES AND RECORDS
A. The City shall maintain accurate files and records on each applicant. All pertinent
documentation must be maintained for five years after project completion. Such
files shall be open for public inspection in accordance with the Texas Public
Information Act and be available at the City's offices.
B. Project Close-Out
i. The City shall ensure that upon completion of each project, the following closeout
forms are maintained:
(1) HUD's Homeownership Assistance Project Completion Report;
(2) Historically Underutilized Businesses (HUBS) Report; and
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(3) Other forms as may be required by HUD.
C. Contract Close-Out
i. The City shall ensure that upon completion of the contract the Certification of
Completion and such other forms as may be required are maintained.
19. GRIEVANCE PROCEDURE
A. Each applicant or participant shall have the right to appeal any decision in the
form of a grievance to the City, provided such appeal is made within fifteen (15)
days from when the decision has been rendered or the grievance occurred and/or
became known to the applicant. If the applicant/participant is not satisfied with
the decision of the City, he/she may then appeal his or her grievance to the U. S.
Department of Housing and Urban Development provided such appeal is made
within fifteen (15) days from the date of the decision of the City. The decision of
the City shall be final.
B. City Employees Not To Be Held Liable
i. No member, officer, agent, or employee of the City of Beaumont shall be
personally liable concerning any matters arising out of or in relation to, the
commitment of Owner-Occupied Rehabilitation Program funds with regard to
feasibility or viability of the proposed project.
ii. Changes, Waivers And/Or Conflicts
(1) The City of Beaumont shall have the right to change, modify, waive or
revoke all or any part of these guidelines in writing by a majority vote
taken at an open meeting of the Beaumont City Council.
(2) No member of the governing body of the City of Beaumont and no other
official, employee, or agent of the City of Beaumont who exercises policy
or decision-making functions or responsibilities in connection with the
planning and implementation of this Program shall be eligible for
rehabilitation assistance, in accordance with 24 CFR Section 570.489(h),
Conflict of Interest.
Addendum
Desired changes and/or additions to this program design may be allowed. Please cite the
section that is to be replaced along with the proposed and/or alternative language. Only
amendments submitted in this way will be considered for approval by Beaumont City
Council.
ADOPTED by the Beaumont City Council on the day of , 2009
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Resolution#
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