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HomeMy WebLinkAbout2001-3145\Our00a HMe Impmvmnem tloe ORDINANCE NO O+ 00/— 314 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, APPROVING GUIDELINES FOR OPERATION OF THE CITY OF DENTON HOME IMPROVEMENT & OPTIONAL RECONSTRUCTION PROGRAM AND ELIGIBILITY CRITERIA, AUTHORIZING EXPENDITURES IN EXCESS OF $15,000 FOR PROJECTS MEETING PROGRAM GUIDELINES AND CRITERIA, AND PROVIDING FOR AN EFFECTIVE DATE WHEREAS, the City Council of the City of Denton recognizes the need to assist low and moderate income families in securing safe, sanitary and decent housing, and WHEREAS, the City of Denton participates in a Home Improvement & Optional Reconstruction Program administered by the City of Denton Community Development Office and funded through a federal grant from the Department of Housing and Urban Development, NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION 1 That the City Council approves the Home Improvement & Optional Reconstruction Program Guidelines and Home Improvement & Optional Reconstruction Program Eligibility Criteria which is attached hereto and made a part of this ordinance for all purposes as Exhibit "A" and authorizes the City of Denton Community Development Office to administer this program SECTION 2 That the City Council authorizes the expenditure of funds in excess of $15,000 by the Community Development Office for projects meeting program guidelines and criteria, subject to compliance with competitive bidding laws, where applicable SECTION 3 That this ordinance shall become effective immediately upon its passage and approval A PASSED AND APPROVED this theday of , 2001 �4' Anx— EULINE BROCK, MAYOR 5 Que Douuolmu�jwm Ib00100[nMe Homo Impmumnm don ATTEST JENNIFER WALTERS, CITY SECRETARY BY APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY BY l Page 2 of 2 Home Improvement & Optional Reconstruction gl} 2001 Program Guidelines Available in Spanish 1 Dlsponible on Espafiol Effective Date 10/01/2001 Applicant(s) Is Subject To All Guideline Changes TABLE OF CONTENTS Introduction .......... . Description of Program Procedures. Home imprP ,wwxx.x..xn.wxid wlxxxxx•xx...xxw••••••••••. 4 I Eligibility Requirements 4 II Application Processing 6 III Description of Financial Assistance 7 IV Feasibility for Rehabilitation Process. 9 V Appeals Provision 11 VI Contractor Selection and Monitoring 11 VII Payment to Contractor 12 VIII Contractor Debarment 13 00tionl Re0ono,'" f A&*,,7"*'".+i;w..,,xexx + n...+«....................I I Purpose 13 II Designated Authority 14 III Implementation Process. 14 IV Eligibility Requirements 15 V Feasibility for Reconstruction 16 VI Selection of Recipients for Assistance 16 VII Allowable Expenses & Categories of Financial Assistance 16 VIII Rehousing Agreement 19 IX Final Inspection - Certificate of Occupancy 20 . ppendiees Appendix 1 Qualifying Income Limits and Ranges for the City of Denton's Federally Assisted Programs. 22 Appendix 2 Target Neighborhoods Map 23 Appendix 3 Optional Reconstruction Program Application and Temporary Relocation Questionnaire 24 Appendix 4 Optional Reconstruction Program Rehousing Agreement for Applicants 25 INTRODUCTION The City of Denton Home Improvement and Optional Reconstruction Program is designed to assist low and moderate -income families in securing safe, sanitary and decent housing This program's objective is to assist eligible homeowners to rehabilitate single-family owner -occupied houses by making needed repairs with the first priority being to correct code violations When a determination is made that the structure is not feasible to rehabilitate to minimum standards under the City's Home Improvement Program the applicant may be eligible for assistance to reconstruct the property The Optional Reconstruction Program provides funds to demolish existing dilapidated dwellings and reconstruct adequate, decent, safe and sanitary replacement dwellings The Home Improvement and Optional Reconstruction Programs are administered by the City of Denton's Community Services Division and are funded by federal grant from the Department of Housing and Urban Development The following pages contain a detailed description of these programs including policies and procedures The purpose of these guidelines is to explain to potential applicants and the citizens of Denton, the Home Improvement and Optional Reconstruction Programs and their levels of assistance For further information or clarification of the guidelines, contact the Community Services Division Community Services Division 100 West Oak Street, Suite 208 Denton, Texas 76201-4144 (940)349-7726 3 Home Improvement Program Description of Program Procedures I. Eligibility Requirements —Eligibility requirements must be met fbiboth the applicanthouseholdand the structure Eligibility for assistance is completed in two phases as described in Sections I A and 1 B below A Applicant/Household Eligibility Requirements Are Must be a United States citizen or a legal resident alien Must have owned and occupied the single -family -dwelling unit for not less than five years for the Home Improvement and Optional Reconstruction Programs (The period of time an applicant has lived in a property under a lease for purchase/ or contract for deed form or purchase maybe taken into consideration in calculating the five years ) Must hold a Fee Simple Title to the property a If applicant is purchasing their home by a "contract for deed" (or a like contract), where applicant does not gain title to the property deed until all contract agreements have been met, applicant isiot eligible for rehabilitation assistance The sellennust provide the purchaser with a warranty deed on the property to satisfy the eligibility requirement of item I A 3 above b If applicant(s) inherited property, the necessary legal documents naming applicant(s) as the sole deed holder must be drawn up and filed for record at the Denton County Clerk's Office 4 Must meet program's income limits Gross annual total household income is at or below 80 percent the current Area Median Income (AMI) adjusted for family size Current maximum income limit by household size is Number of People Livina in Household 1 80% of the AMI Maximum Income Limit $36,050 $41,200 $46,350 $51,500 $55,650 $59,750 $63,900 $68,000 Must not have assets (total combined for all household members) in excess of $100,000 NOTE 1 The appraised value of the applicant's home is excluded in total assets calculation NOTE 2 Annual income and asset income are calculated using HUD's most current Section 8 Income guidelines and rules as established in the Technical Guide for Determining Income Must be in good credit standing with and exhibit the ability to pay creditors including the following basic housing expenses a Home Mortgage Payment b Loan payment(s) (when applicant's property is collateral on loan) including the loan with the City of Denton to rehabilitate property c Property Taxes (City, County, DISD) d Homeowner's Insurance Policy premiums e Utilities electrical/water/sewage/solid waste and gas 6 Homeowner may be required to apply for a loan to provide the program required contribution (see Section III A ) 7 The total amount of hen(s) on the property cannot exceed 80 percent of the property's appraised value as set by the Denton Central Appraisal District (cannot exceed 70 percent of the property's appraised value for reconstruction assistance) NOTE The City of Denton reserves the right to request an independent market analysis 8 Applicants denied assistance due to poor credit history may be reconsidered for the program upon verifiable completion of six (6) consecutive months of successful debt management with Consumer Credit Counseling Services of North Central Texas, Inc or other debt management companies with written approval B Property Eligibility Requirements I Must be classified as asmgle-family-dwelling unit and be situated in a Targeted Neighborhood within the city limits of Denton (Refer to Targeted Neighborhoods Map - Appendix 2) 2 Must exhibit building code deficiencies that make the structure unsafe or unsanitary 3 May not have existing property code violations (such as high weeds, trash, debrisjunk vehicles, etc) Anyliens placed on properties for correcting any code violations must be paid in full by the time application processing occurs 4 Must be serviced by a City -approved water supply, sanitary sewer and electrical system 5 Must meet all of the City of Denton's Land Development Codes 6 Must be feasible for rehabilitation as defined in Section IV of the Program Procedures 7 Must be covered by an approved homeowner's insurance policy NOTE If an applicant's property is not currently insurable because of its present condition, the applicant must obtain a homeowner's insurance policyquote (from any reputable insurance agency) The quote should be based on the after -rehabilitation structural status Applicant should inform agent that the structure will be rehabilitated to meetall current Building, Electrical, Plumbingand FireSafety codes. Applicant must provide this quote to the Community Services Division and sign aNOTICE OF INTENT AND AGREEMENT TO OBTAIN A HOMEOWNER INSURANCE POLICY to satisfy eligibility required in item I B 7. 8 A property that has been previously rehabilitated with Federal or State grant fundsitfter March 1994 is not eligible for assistance Properties having received assistance before April 1994 may be eligible for additional assistance after eight (8) years from the date of the last assistance With the exception of B8 above, households previously assisted with HOME fundsnaybeeligibleforrehab assistance based on availability of funds and federal regulations 11. Application Processing A To be placed on the waiting list, applicants must meet the following guidelines 1 Household's total gross annual income does not exceed current program income limits 2 Owner is the occupant of a single-family dwelling unit for not less than three years 3 Property is located to a Targeted Neighborhood (see Appendix 2) 4 Applicant must complete a Waiting List Application Form and attach a copy of property deed (Waiting List Application Forms are available at the Community Services Division, 100 West Oak Street, Suite 208, Denton, Texas, 76201-4144, 940-349-7726 ) B A household is assigned the next available number on the waiting list, in order received by the Community Services Division, by time and date C When applicant reaches the top of the waiting list, s/he will be notified in writingto completethe application process The letter of notice to apply for assistance requests applicant to provide the following items • Copy of Deed or Warranty Deed for the property to be rehabilitated (applicant must be deed holder) • Name/mailing address of your mortgage company (if you have a mortgage payment) • Name/mailing address of your Homeowner insurance policy provider with "paid" receipt or canceled check • Current year's "paid" Property Tax receipts from DISD, City and County tax offices • Current year's Income Tax Return with W-2's, 1099's, etc for each household member who filed tax returns • Social Security number(s) for household members who receive Social Security benefits • Most current income statement (if you receive Social Security benefits) • Paycheck stubs for last four weeks for each employed household member • Employers' names/addresses for each employed household member • Names and addresses of retirement income or any other income sources (ALL INCOME SOURCES MUST BE DISCLOSED —RETIREMENT, RENTALMAP INCOME, AFDC, FOOD STAMPS, ETC) • Divorce decree if you receive child/other support from a divorce or if you were awarded deed to your property through a divorce • Two most current months' statements (must include names/addresses/account numbers) of all banks, credit unions, savings banks, IRA accounts, etc for all household members who have any of these types of accounts • Bills ifor the last twelve months from TXU Gas and City Utilities (If you don't have copies of the last twelve months bills, TXU or City of Denton Utilities will mail you a summary Please be sure the summary has your current balance stated ) NOTE Deadlines given for contacting the CD office to make an appointment to apply and those given for submitting application information will be stated in the notice to apply letter (See Section II C ) The deadlines will be enforced D Applicant must provide all information requested in 11 C above that applies to his/her household and complete all required verification forms in the application packet All information will be verified by Community Services staff If any information is found to have been intentionally falsified, the application will be rejected and the applicantwill not be allowed to reapply to this program 0 E Community Services staff will calculate the gross annual household mcommnd determine the percent of income spent for housing expenses F Community Services staff will notify eligible applicant(s) of the financial assistance category he/she is eligible for under the program guidelines Applicant will be notified that finaleligibrhty for assistance is determined upon completion of the feasibility for rehabilitation process Ineligible applicants will be notified of the reason their application for assistance is being rejected 111. Description Of Financial Assistance Categories A Applicant must attend a credit evaluation meeting with Consumer Credit Counseling Services of North Central Texas, Inc Also, obtain a loan, or provide from personal funds a personal contribution toward the rehabilitation of the property The amount of private funds a household is asked to contribute to the project is based on a sliding scale as follows Moderate (80%-+65%AMI) Income Households =1%of total protect Low Income (65%-+50%AMI) Households = 75% of total project Very -Low Income (50%-+300/aAMI) Households = 5% of total project Extremely -Low Income (0-30%AMI) Households = 25% of total project To be eligible for assistance through the City of Denton's Home Improvement Program a family must be in good credit standing and exhibit the ability to pay back a rehab loan B The City of Denton will fund the remaining project cost This City -funded portion of the project has a loan lien period and financial assistance categories for those who qualify for the Home Improvement Program The loan hen period categories are based on project cost The financial assistance categories are based on thQualifymg Income Limits and Ranges for the City of Denton's Federally Assisted Programs(see Appendix 1 to these guidelines for current income limitranges) A description of the loan lien period and financial assistance categoriesand their requirements are Loan Lien Period Categories Project Cost Less than $10,000 = 5 year lien (60 months) Project Cost Between $10,000 - $25,000 =10 year lien (120 months) Project Cost Between $25,001 & up =15 year lien (180 months) Financial Assistance Categories 1 70 Percent Rehabilitation Loan / 30 Percent Deferred PavmentLoan Applicantswhose grossannual household income falls above 65 percent up to 80 percent of the area median family income limitswill qualify forthistwo part loan, a 3 percent interest loanwith the loan amount being based on 70 percent of the total City -funded project cost amortized over the Loan Lien Period The lien will not be released on this part of the loan until all payments are received in full by the City of Denton, and b a deferred payment loan with the loan amount being based on 30 percent of the total City -funded project cost A detailed description of the deferred payment loan is found below at the end of section III B 4 40 Percent Rehabilitation Loan / 60 Percent Deferred PavmentLoan Applicantswhose gross annual household income falls above 50 percent up to 65 percent of the area median familpncome limitswill qualify for this two part loan, a 3 percent interest loan with the loan amount being based on 40 percent of the total City -funded project cost amortized over the Loan Lien Period The lien will not be released on this part of the loan until all payments are received in full by the City of Denton, and b a deferred payment loan with the loan amount being based on 60 percent of the total City -funded project cost A detailed description of the deferred payment loan is found at the end of section III B 4 20 Percent Rehabilitation Loan / 80 Percent Deferred PaymentLoan Applicantswhose gross annual household income falls above 30 percent up to 50 percent of the area median family income hmitswill qualify for this two part loan, 3 percent interest loanwith the loan amount being based on 20 percent ofthe total Cityfunded projectcost amortized over the Loan Lien Period The hen will not be released on this part of the loan until all payments are received in full by the City of Denton, and a deferred payment loan with the loan amount being based on 80 percent of the total City -funded project cost A detailed description of the deferred payment loan is found at the end of section III B 4 10 Percent Rehabilitation Loan / 90 Percent Deferred PaymentLoan Applicantswhose gross annual household income falls at or below 30 percent of the area median family income limits will qualify for this two-part loan, a a 3 percent interest loanwrth the loan amount being based on 10 percent of the total City -funded project cost amortized over the Loan Lien Period The hen will not be released on this part of the loan until all payments are received in full by the City of Denton, and a deferred payment loan with the loan amount being based on 90 percent of the total City -funded project cost A detailed description of the deferred payment loan is found at the end of section III B 4 *DESCIPPTION OF A DEFERRED PAYMENT LOAN A deferred payment loan shall carry 0 percent interest and continue until the applicantsatisfiesthe conditions listed in the deed of trust and promissory note executed prior to project start date There are no monthly payments Deferred payment loans are secured by alien on the property For each month the applicant lives on the property, a monthly payment amount established in a promissory note will be forgiven If the property is sold or transferred before the hen period expires, the applicant is credited for every month of residency The credos subtracted from the total loan amount to determine the unforgiven loan balance The unforgiven balance is owed and becomes due to the Community Services Program Amounts received are used as program income The City of Denton will be in the first lien position on all rehabilitated dwellings However, in situations where first lien position is not feasible, the City will accept a second hen position subject to the review and approval of the Community Development Administrator The lien will not be released unless the following conditions are met 1 Theiapplicant must reside in the unit for the full period of the lien 2 The property must be maintained to meet City code requirements 3 Mortgage payments must be met on a timely basis 4 Home applicant must provide documentation of adequate homeowner's insurance, including casualty and fire coverage, and the City must be listed as a Mortgagee on the Certificate of Insurance to be notified in case of policy cancellation, NOTE. The Deed of Trust Contract requires the applicant, upon completion of the rehabilitation,to maintain and/or purchase, for the full length of time which the City of Denton will have a lien on property,an insurance policy that covers all improvements resulting from the rehabilitation for their full insurable value, provide fire and extended coverage, including windstorm coverage, provides flood insurance at anytime property is in a flood hazard area Applicant agrees to comply at all times with the requirements of the 80percent coinsurance clause, and keep any buildings occupied as required by the insurance policy If within the period of the lien the applicant defaults on their deferred payment loan or the payable loan, the lien H will be called due in full and foreclosure proceedings maybe initiated The City will make every effort to work with the applicant to avoid foreclosure and will examine each situation on a case by case bans C Repayment Policy for Financial Assistance The applicant must agree to have a lien placed on their property until they have satisfied the requirements of the promissory note The lien will remain until the loan has been paid in full If for any reason the loan recipient decides to sell or rent the property before the lien's terms are all met, the note's balance will become due D In the event of the death of the owner(s) prior to the maturity date, or the owner(s) can no longer reside in the property due to a permanent medical condition, and the legal heirs to the property decide to sell the property, the amount to be repaid to the City of Denton will be the lesser of 1 75 percent of the property's market value (based on aCity-approved independent appraisal at the time of sale), or, 2 the payoff balance of the loan due the City of Denton at the time of death or the date the owner no longer resided in the home E E Liens will remain in effect until the grantee has met all requirements as specified in the promissory note In the event of the sale of the property, any unpaid balance of the loan and any unforgiven portion of the deferred payment loan will become due immediately If, in the event of the death of the grantee, a family member who meets the Program's income limits should take up residency in the property, s/he must apply to the Community Services Division for continued assistance with the loan The assistance level will be based on current -year program guidelines and s/he will be required to sign an Adjustment and Extension of Note and Lien NOTE Liens established as a result of an agreement with the City of Denton for a home improvement loan cannot be subordinated to future hens on the property unless 1 the new hen places the City in no less than a second hen position, and 2 the loan refinances the original mortgage loan with no significant increase in the mortgage amount, or 3 the loan is used to fund additional home improvements and the total of the liens does not exceed the appraised property value If, after the loan payback begins, a household experiences apermanent, substantial loss of household income, an applicant can request a re-evaluation of their total annual gross household income This evaluation may result in a decrease in the payable portion of the note The loss of income must be from an income -earning applicant(s) whose income was used in determining the original loan assistance category Please note Loss of employment (voluntarily or involuntarily) is not considered a "permanent loss" For purposes of this program "permanent loss" is defined as 1 death 2 retirement (must be 62 years of age or older) 3 permanent disability 4 Other substantial permanent loss of income, when approved by Community Development Administrator All household members must complete all income information and forms as required inection ll - Application Processing to determine if an adjustment and/or extension to the payable portion of the note is eligible A determination will be made after evaluatingthe household size and income usingthe program guideline income hint and financial assistance categories that are being used at the time the request for reduced loan payment is made When a loan adjustment and/or extension is granted, the applicant must sign arildrustmentand ModificationofNote and Lien contract reflecting the adjustment and/or extension of the note IV. Feasibility For Rehabilitation Process A A decision as to whether a structure is feasible for rehabilitation is made after a complete assessmentofthe following 0 factors Completion of a detailed inspection of the property by Community Services staff is conducted This inspection includes completing a list of all deficiencies that must be corrected in order to bring the structure up to minimum program standards (compliance with HUD's Section 8 Minimum Housing Quality Standardsknd City of Denton building codes Determine if the rehabilitation cost will be affected by the zoning of a property, a property being located in a designated 100-year floodplam or floodway, a need to abate possible presence of lead -based paint, possible historical restoration requirements or if a rehab will reduce noise levels if property is in a high noise area NOTE The Floodplam Management regulations limit the total cost of all non-codaaepairs for any structure located in a designated 100-year floodplam to not exceed 50 percent of a property's (structure only) pre - rehabilitation appraised value as set by the Denton Central Appraisal District Determine if the framework and foundation of a structure are stable, or can be made stable through rehabilitation Lead -based paint hazard reduction techniques will be used when lead -based paint exceeds HUD's acceptable limits for lead content in existing paint The limits for lead content exceed HUD's limits whedead content exceeds 1 mg per cm' (one milligram per centimeter squared), or 5000 ppm (parts per million) The reduction techniques used by this program are described and found in the U S Department of Housing & Urban Development's publication, Guidelines For The Evaluation and Control Of Lead -Based Paint Hazards In Hou in , issued June 1995 Is a room addition(s) needed to relieve serious overcrowdmg9 NOTE Room additions and improvements to relieve serious overcrowding may be eligible and require the approval of the Community Development Administrator The City will follow the standards consistentwith the Community Services Division Replacement Housing Space AIlowancesPolicy when consideringthe number of bedrooms needed to avoid overcrowding B Using all information obtained in items IV A 1-5 above, a cost estimate and structural evaluationwill be completed A project with a cost estimate above Program Maximum Limits is not eligible for rehabilitationassistance Applicant may be referred to Optional Reconstruction Program C PROGRAM MAXIMUM LIMITS FOR REHABILITATION A rehabilitation that cannot meetall of the following limit tests is considered cost prohibitive or not feasible for rehabilitation Rehabilitation will not exceed $40 per square foot of total Irving space (using after rehabilitation square footage) Exception $45 per square foot if the house needs to comply with lead reduction or historical requirements $50 per square foot if the house needs to comply with both lead reduction and historical requirements Rehabilitation will not exceed the current Maximum Home Subsidy Limits for Denton as set by HUD The after rehabilitation appraised property value I�us all costs expended to complete the project (including the other funds and owners portion) will not exceed the current Single Family Mortgage Limit for Denton as established by HUD D PROGRAM MINIMUM LIMITS FOR REHABILITATION A structure needing less than $5000 of repairs is not eligible for rehabilitation assistance 10 V. Appeals Plrovisions: An applicant who feels that s/he has been unjustly denied rehabilitation assistance under the City'sHome Improvementor Optional Reconstruction Program should follow the appeals procedure outlined in Section V A Request for Waiver The City of Denton's Home Improvement Program has been developed to adhere to a set of guidelines in order to assure proper administration and management of the Home Improvement Program In the event that an applicant feels that his/her circumstances require special consideration, s/he can request, in writing, a waiver from the usual requirements All requests should specify the requirement(s) to be considered for waiver and state the applicant's reason(s) or special circumstances why s/he bebves a waiver should be approved Requests will be reviewed by the Community Development Administrator on a case by case basis Applicant will be notified in writing of the Community Services Division's final decision B Appeals Procedure Applicants, who have been determined by the Community Development Administrator to be ineligible for rehabilitation, may appeal this decision to the Department Director A written appeal must be submitted The Department Director shall issue a written response within fifteen days of receiving the request VI. Contractor Selection And Monitorina All housing rehabilitation recipients are responsible for finding a contractor who will develop a proposal to make the necessary repairs to their home Your contractor's priposal must be submitted to the Community Services Division within 30 days from the date you receive the work order write-up prepared by the Community Development Housing Inspector Contact any reputable and experienced contractor and request a bid for the required work IF YOU HAVE ANY TROUBLE FINDING A CONTRACTOR, contact any of the following places for assistance • Your local Better Business Bureau • Any friends or neighbors who have had remodeling done to their properties • Chamber of Commerce • Community Services Division Contractor's List When a contractor comes to look at your home you should Show him/her the mandatory work items that have been identified by the Community Development Housing Inspector Advise him/her that the bid proposal must be returned to you or the Community Services Division for submissionto the rehabilitation program on or before the due date DO NOT SIGN ANY AGREEMENT WITH THE CONTRACTOR Bring the contractor's bid proposal to the Community Services Division at 100 West Oak Street, Suite 208, where you made your original application The Community Development Housing Rehabilitation Inspector or Housing Rehabilitation Specialist will review the proposal to verify that 1 The contractor is licensed and has all City -required insurance coverages 2 All required improvements have been included in the bid 3 The proposed work is in conformance with the program's General Specifications 4 All proposed rehabilitation costs are reasonable 11 The contractor you have chosen has not been disqualified (debarred) by any local, State or Federal government agency The bid proposals that are submitted by the applicant will be reviewed by the Community Development Housing Rehabilitation Inspector to determine if the total bid price is reasonable and under the maximum allowable amount THE CITY OF DENTON AND THE Applicant RESERVE THE RIGHT TO REJECT ANY AND ALL BiDS If the Community Development Administrator approves the bid proposal selected by the applicant, then the Community Services staff shall proceed with the review of all other forms submitted by the contractor Any contractor whose name appears on the most current HUD or City of Denton Debarred Contractor's List will not be eligible to participate in this program References will be checked and claims of substandard workmanship will be cause to declare a contractor ineligible The contractor must also submit all required proof of insurance forms and bonds (if applicable) Failure to submit these will result in rejection of the bid proposal Once the contractor has been selected and approved, a contract agreement must be signed Before the contractor can start work, the applicant must issue a notice to proceed The applicant, the Community Services staff and theCity of Denton building code inspector will monitorthe contractor's work If the applicant considers any work done by the contractor to be unsatisfactory or incomplete, the applicant should advise the contractor of the discrepancy and ask that it be corrected In the event a dispute exists between the applicant and the contractor with respect to the rehabilitation work, the City shall take appropriate action in accordance with the provisions of the construction contract to assure that the applicant is stisfied before making any payment to the contractor In the event a dispute cannot be resolved, the Department Director shall consider all pertinent facts and shall decide an appropriate course of action to resolve the dispute Acceptance of Work Final Inspection- In order for the contractor to close out a rehabilitation job, a final inspection shall be made by the City of Denton building code inspector, the Community Services staff, and the applicant if the final inspection resu Its in no additional work or no specified corrections, the applicant shall sign the contractor's release form which states that all work has been completed to their (applicant's) satisfaction The building code inspector shall sign a final inspection form to confirm the same At this time, the contractor is required to submit to the Community Services Division copies of all warranties and releases of liens from subcontractorsand suppliers Community Services will not authorize payment to the contractor until these documents are properly completed and submitted Community Services staff will make copies of warranties and other documentation The applicant will receive original warranty and guarantee documents The Community Services Division will retain copies of these documents for the file Warranty of Work- As stated in the rehabilitation contract, the contractor shall guarantee the work performed for a period of at least one-year from the date of final acceptance The contractor will return in thirty (30) days andsk the applicant if any additional repairs are necessary Any deficiencies or necessary repairs to specified work will be completed at this time If no repairs are needed, the contractor will request that the applicant release the contingency payment VII. Payment To Contractor The contractor shall receive payment, minus contmgencyamount, for all completed contracts within 15 working days after final inspection approval The contingency amount equals 10 percent of the total contract amount and wifie withheld for thirty (30) days from the date of final acceptance by CD staff After thirty days, if no additional or warranty work remains, the contractor must request from applicant an approval to release withheld contingency funds A contractor may request interim payments throughout the course of the project Interim paymentswill be made available to the contractor upon applicant and inspector approval of any contract work that has been completed Contractor will 12 submit a CONTRACTOR REQUEST FOR PAYMENT AND PERIODIC STATEMENT for the applicant when requesting payments An "All Bills Paid" affidavit and release of lien from all subcontractors and suppliers must be submitted by the contractor to the Community Services Division before final payment can be released to contractor All electrical, plumbing, mechanical and roofing permits and termite inspection reports must be submitted to the Community Services Division prior to releasing contingency payment to the contractor Vlll. Contractor Debarment A contractor will be declared ineligible to participate in projects funded by the City of Denton's Home Improvement Program for one or more of the following causes I Failure to complete a project within the prescribed contract period 2 Failure to complete warranty repairs within a reasonable time period 3 Failure to use licensed plumbing and electrical subcontractors 4 Failure to obtain City -required insurance, i e , general contractor's lability, automobile Iiabihtyand builder's risk (if applicable) 5 Failure to complete work in accordance with program specifications and/or accepted standards of workmanship 6 Failure to pay all subcontractors working on the project appropriately and/or by not submittingaffidavits ofpayment signed by all subcontractors 7 Failure to obtain proper permits for work in progress 8 Failure to treat applicants with respect and courtesy Contractors will be notified of their proposed debarment and will be afforded the opportunity to comment or appeal the action All appeals must be madem writin to the Community Services Division by the 15th day from the date of the notification letter Contractors debarred from the Home Improvement Program may no longer contact applicants receivmgCDBG or HOME grant funds with the intent of providing a bid for a project Optional Reconstruction Program Description Of Program Procedures Unless herein stated otherwise, the general operating procedures contained in the City of Denton's Community Services Home Improvement Program Guidelines will be followed 1. PURPOSE A The City of Denton, Texas, will provide assistance necessary to accomplish the reconstruction of dwellings not feasible for rehabilitation The Optional Reconstruction Program will provide funds to demolish existing 13 dilapidated dwellings and reconstruct adequate, decent, safe and sanitary replacement dwellings In addition, the City will also promote the elimination of slum and blight that exists in the City B Reconstruction payments and assistance will be carried out under the City of Denton's Community Services Program as an eligible expense from project funds Assistance shall be subject to the availabilnyofgrant funds and U S Department of Housing and Urban Development (HUD) implementing regulations Administrative procedures will be modified to meet any change in rules and regulations of HUD that may occur over time 11. DESIGNATED AUTHORITY A Administrative authority for implementation of the program will rest with the City of Denton's Community Services Division This office will serve as the approving office for rehousing agreements and for contractual and budget changes as needed for project completion B The Community Development Administrator will have the responsibilayfor final determination of the amount of reconstruction assistance to be made available to individual applicants in accordance with the implementing procedures C The Community Development Administrator will be responsible for approval of applicant eligibility for the program and final approval of selection of applicants to be assisted This will be based upon relative need of applicants on the City's list of houses that have been determined infeasible for rehabilitation under the Home Improvement Program III. IMPLEMENTATION PROCESS Steps in implementing the program will be as follows A Community Services Division maintains the list of applicants to the Home improvement Program When a determination has been made that the structure is not feasible to rehabilitate to minimum standards under the City's Home Improvement Program Eligible applicants will be assisted in the reconstruction of their home They will be assisted in the Home Improvement Program Waiting List order B Applicant is notified that the rehabilitation of the structure has been determined to be infeasible Eligibility requirements for the Optional Reconstruction Program must be met for applicants to be placed on the Optional Reconstruction Program waiting list C Staff evaluates applications for reconstruction assistance as specified in Section VI Staff processes applications as possible under funding and staff limitations D Applicant is informed of available assistance E Applicant submits an OptionalReconstructionProRrianApplication&TemporaryRelocationQuestionnairQ acknowledging receipt of information explammgthe City's program, and requesting reconstructionassistanceto enable applicant to obtain suitable and adequate housing F Community Services Staff determine whether approval of applicant's Optional Reconstruction Program Applicgtion & Temporary Relocation Ouestionnairereasonably may be expected to result in the successful and feasible rehousing of the applicant In cases where the applicant's general health or income level would preclude his or her adequate and responsible operation of a replacement dwelling, and/or cases in which the costs of the replacement dwelling would be substantially above the costs of typical cases, and to the extent that the probability of the City reaching its Community Services Program goals would be endangered due to cost 14 overruns, the applicant's request maybe denied The applicant will be notified in writing of the determination and, if the request is not approved, the reasons for denial When the determination is approvalof the applicant's request, a Notice of Approval will be sent informing the applicant that the City is authorized to enter into a rehousing agreement with the applicant for a specified Replacement Housing Payment determined appropriate by the city pursuant to its Reconstruction Policy Before any agreement being executed between the applicant and the City, the Community Services Division will comply with the public disclosure and notification/authorization to and from HUD requirements according to 24CFR Part 70, Section 104(d), Reconstruction and One -for -One Replacement Housing Requirements G A Rehousing Agreement is executed between the applicant and the City, under the terms of which the applicant agrees to move permanently and voluntarily from the dwelling on or before a specified date H Community Services Staff will provide counseling and assistance as needed to applicants in order to facilitate the applicant's rehousing, including referrals to builders, suppliers, etc I The applicant and the Community Services Division agree to the arrangement and method of the approved payments, the applicant will execute a contract with a builder for the selected replacement dwelling The applicant will also contract for the demolition of the substandard dwelling and for lot and site clearance and preparation J When appropriate, the applicant voluntarily vacates the substandard dwelling K The replacement dwelling is constructed on the same lot as the original and is inspected by the City Building inspections Division to determine adequacy and compliance with City codes L City certifies that the replacement dwelling is decent, safe, and sanitary and ready for occupancy City issues a final building inspection M Applicant accepts replacement home N A formal closing ceremony is held and applicant acknowledges receipt of payment schedule O Upon completion of all actions in regards to reconstruction, applicant acknowledges in writing that all payments, assistance, and conditions of the rehousing agreement have been received to the applicant's satisfaction P Applicant occupies replacement structure IV. ELIGIBILITY REQUIREMENTS Eligibility for reconstruction payments and assistance shall be established as follows A Applicant has applied for rehabilitation assistance under the City of Denton's Home Improvement Program B Applicant was rejected for rehabilitation assistance on the grounds that the dwelling was not feasible for rehabilitation C Applicant is the owner -occupant ofthe dwelling for which reconstruction assistance is being requested and s/he resides within a Targeted Neighborhood (see Appendix 2) The dwelling has been the applicant's principal residence for a minimum of 5 years prior to application for reconstruction assistance 15 D Applicant has presented proof of ownership by General or Special Warranty deed (City staff verifies proof of ownership through a title search E The total amount of existing hen(s) cannot exceed 70 percent of the property's current appraised value as set by the Denton Central Appraisal District (Note The City of Denton reserves the right to request an independent market analysis ) F Applicants shall provide complete and accurate information regarding their household composition, household income, and housing situation Failure to disclose information that may affect eligibilityrequirementsshall also constitute fraud Applicants shall be required to make full restitution to the City in the event Community Services Division services are provided to applicants who provide inaccurate or incomplete information in order to meet eligibility requirements G Applicants must demonstrate that their income exceeds their projected housing expenses H Applicants agree to conform to Denton Code Enforcement requests prior to being determined eligible for replacement housing assistance Applicants agree to maintain dwellmgand exterior grounds inaccordance with applicable city ordinances Applicants are required to attend the Successful Homeownership Workshop, with emphasis being placed on maintenance, budgeting, cost effective decorating, and responsibilities of home ownership Applicant may be required to apply for a loan to provide the program -required personal contribution V. FEASIBILITY FOR RECONSTRUCTION Feasibility for reconstruction is based on determining Arelated costs to complete a reconstruction project Total project costs cannot exceed the maximum amount allowed as set by tl¢ current Section 221(d)(3) Lowest Home Per - Unit Subsidy Limits for the State of Texas as set by the Department of Housing and Urban Development (HUD) Project costs include, but are not limited to, the cost of demolition, site preparation, cost of replacement dwelling, title search fee, and/or required City permit fees for construction VI. SELECTION OF RECIPIENTS FOR ASSISTANCE A Initial recipients of this program will betaken from the list of applicants residing in structures determined to be infeasible to rehabilitate Additional recipients will be added during subsequent operation of the City of Denton's Home Improvement Program B The number of recipients to receive assistance will be subject to availability of funds C Applicants will be placed on a waiting list for reconstruction assistance based on the time and date they originally applied to the Community Services Division for rehabilitation assistance VI1. ALLOWABLE EXPENSES AND CATEGORIES OF FINANCIAL ASSISTANCE A The primary form of assistance to be provided will be the use of Federal HOME grant funds to pay for the cost of the replacement dwelling and costs related to replacing a substandard unit B In general, the City will follow the standards consistent with the Community Services Division Replacement Housing Space Allowances Policy when considering the number of bedrooms needed to avoid overcrowding 16 C The City of Denton has FOUR FINANCIAL ASSISTANCE CATEGORIES for those who qualify for the Optional Reconstruction Program These categories are based on theQualtfymg Income Limits and Ranges for the City of Denton's Federally Assisted Program (see appendix 1 to these guidelines for current income limit ranges) A description of the financial assistance categories and their requirements are 70 Percent Reconstruction Loan / 30 Percent Deferred Payment Loan Applicants whose gross annual household income falls above 65 percent up to 80 percent of the area median family income limttswill qualify for this two part loan, a a 3 percent interest loanwrth the loan amount being based on 70 percent of the total City -funded project cost amortized over 240 months The lien will not be released on this part of the loan until all 240 payments are received in full by the City of Denton, and b a deferred payment loan with the loan amount being based on 30 percent of the total City -funded project cost A detailed description of the deferred payment loan is found below at the end of section VII C 4 40 Percent Reconstruction Loan / 60 Percent Deferred Payment Loan Applicants whose gross annual household income falls above 50 percent up to 65 percent of the area median family income limns will qualify forthis two part loan, a 3 percent interest loan with the loan amount being based on 40 percent of the total City -funded project cost amortized over 240 months The lien will not be released on this part of the loan until all 240 payments are received in full by the City of Denton, and a deferred payment loan with the loan amount being based on 60 percent of the total City -funded project cost A detailed description of the deferred payment loan is found at the end of section VII C 4 20 Percent Reconstruction Loan / 80 Percent Deferred Payment Loan Applicants whose gross annual household income falls above 30 percent up to 50 percent of the area median family income hmitswill qualify forthistwo part loan, 3 percent interest loanwrth the loan amount being based on 20 percent of the total Cityfunded project cost amortized over 240 months The lien will not be released on this part of the loan until all 240 payments are received in full by the City of Denton, and b a deferred payment loan with the loan amount being based on 80 percent of the total City -funded project cost A detailed description of the deferred payment loan is found at the end of section VII C 4 10 Percent Reconstruction Loan / 90 Percent Deferred Payment Loan Applicants whose gross annual household income falls at or below 30 percent of the area median family income limns will qualify for this two-part loan, a 3 percent interest loanwrth the loan amount being based on 10 percent of the total City -funded project cost amortized over 240 months The hen will not be released on this part of the loan until all 240 payments are received in full by the City of Denton, and a deferred payment loanwrth the loan amount being based on 90 percent of the total City -funded project cost A detailed description of the deferred payment loan is found at the end of section VII C 4 *DESCRIPTION OF A DEFERRED PAYMENT LOAN A deferred payment loan shall carry 0 percent interest and contmueuntil the applicant satisfiesthe conditions listed in the deed of trust and promissory note executed prior toproject start date Deferred payment loans are secured by a lien on the property There are no monthly payments After the applicant has lived on the property for the required 240 months (20 years), as stated in the contracts, the deferred payment loarwill be forgiven If the property is sold 17 or transferred before the lien period expires, the total deferred loan amount is owed and becomes due to the Community Services Program Amounts received are used as program income The City of Denton will be inthe first lien position on all reconstructed dwellings However, in situations where first lien position is not feasible, the City will accept a second hen position subject to the review and approval of the Community Development Administrator The hen will not be released unless the following conditions are met 1 The applicant must reside in the unit for the full period of the hen 2 The property must be maintained to meet City code requirements 3 Mortgage payments must be met on a timely basis 4 Home applicant must provide documentation of adequate homeowner's insurance, including casualty and fire coverage, and the City must be listed as a Mortgagee on the Certificate of Insurance to be notified in case of policy cancellation Homeowner's Insurance documentation must be received prior to applicant moving into completed reconstruct house NOTE The Deed of Trust Contract requires the applicant, upon completion of the reconstruction, to maintain and/or purchase, for the full length of time which the City of Denton will have a lien on property,an insurance policy that covers the home for its full insurable value, provide fire and extended coverage, including windstorm coverage, provides flood insurance at any time property is in a flood hazard area Applicant agrees to comply at all times with the requirements of the 80 percent coinsurance clause, and keep any buildings occupied as required by the insurance policy 5 If within the period of the lien the applicant defaults on their deferred payment loan or the payable loan, the lien will be called due in full and foreclosure proceedings maybe initiated The City will make every effort to work with the applicant to avoid foreclosure and will examine each situation on a case by case basis D Repayment Policy for Financial Assistance The applicant must agree to have a lien placed on their property until they have satisfied the requirements of the promissory note The lien will remain until the loan has been paid in full If for any reason the loan recipient decides to sell or rent the property before the lien's terms are all met, the note's payable loan balance and the full amount of the deferred loan will become due F In the event of the death of the owner(s) prior to the maturity date, or the owner(s) can no longer reside in the property due to a permanent medical condition, and the legal heirs to the property decide to sell the property, the amount to be repaid to the City of Denton will be the lesser of a -I 75 percent of the property's market value (based on a0ty-approved independent appraisal at the time of sale), or, 13-2 The payoff balance of the loan due the City of Denton at the time of the owner(s) death or the date the owner(s) no longer resided in the home G Liens will remain in effect until the grantee has met all requirements as specified in the promissorynote In the event of the sale of the property, any unpaid balance of the loan and the total deferred loan amount will become due immediately If, in the event of the death of the grantee, a family member who meets the Program's income limits should take up residency in the property, s/he must apply to the Community Services Division for continued assistance with the loan The assistance level will be based on current-yeaiprogram guidelines and s/he will be required to sign an Adjustment and Extension of Note and Lien NOTE Liens established as a result of an agreement with the City of Denton for a reconstruction loan cannot be subordinated to future liens on the property unless f the new hen places the City in no less than a second lien position, and 2 the new loan refinances the original mortgage loan with no significant increase in the lu mortgage amount; or the new loan is used to fund additional home improvements and the total of all loans does not exceed the appraised property value G Allowable expenses will include 1 Cost of total demolition and clearance of the dilapidated structure, lot clearance, and preparation ofjob site for new replacement dwelling 2 Cost to reconstruct safe, sanitary, decent replacement dwelling 3 Otherexpenses the Community Services Division determinesto be necessaryto fact I itate the reconstruction of the substandard property H Community Services staff will also provide assistance and counseling to applicants as needed, including the following 1 Information on the program and rehousing options available 2 Assistance in soliciting bids for replacement housing 3 Assistance in contractual compliance between applicant and contractor 4 Assistance in inspection of construction of replacement dwelling, if applicable If, after the loan payback begins, a household experiences apermanent substantial loss of household income, an applicant can request a re-evaluation of their total annual gross household income This evaluation may result in a decrease in the payable portion of the note The loss of income must be from an income -earning applicants) whose income was used in determining the original loan assistance category Please note Loss of employment (voluntarily or involuntarily) is not considered a "permanent loss" For purposes of this program "permanent loss" is defined as I death 2 retirement (must be 62 years of age or older) 3 permanent disability 4 Other substantial permanent loss of income, when approved by Community Development Administrator All household members must complete all income information and forms as required inflection H- Application Processing to determine if an adjustment and/or extension to the payable portion of the note is eligible A determination will be made after evaluatingthe household size and income usingthe program guideline income limits and financial assistance categories that are being used at the time the request for reduced loan payment is made When a loan adjustment and/or extension is granted, the applicant must sign auldiustmentandModircationofNote and Lien contract reflecting the adjustment and/or extension of the note Vill.REHOURING AGREEMENT Each applicant assisted through the program will sign arehousing agreement with the City, which outlines the responsibilities of each Theagreement establishes a date on which the applicant agrees to permanently vacate the present structure, agrees to demolition of the present dilapidated structure, agrees to occupy the replacement 19 structure when structure is completed and ready to be inhabited, and agrees that temporary housing will terminate when structure is ready for occupancy as determined by the City of Denton IX. FINAL INPPECTION - CERTIFICATE OF OCCUPANCY The City of Denton will conduct a final inspection of all housing units made available through the program to determine that the replacement unit is approved for occupancy and that all items identified in a "punch list" have been corrected This Certificate of Occupancy will serve as evidence to HUD of the City's determination that the dilapidated structure has been replaced by a decent, safe, and sanitary dwelling and that the family has been successfully relocated 20 APPENDICES Appendix 1 Qualifying Income Limits and Ranges for the City of Denton's Federally Assisted Programs Appendix 2 Target Neighborhoods Map Appendix 3 Optional Reconstruction Program Application and Temporary Relocation Questionnaire Appendix 4 Optional Reconstruction Program Rehousing Agreement for Applicants 21 APPENDIX 1 FY 2001/2002 City of Denton - Community Services Division Qualifying Income Limits for Federally Assisted Programs Maximum Income Levels and *Two -Part Loan Percentages •70% Payable Loan 1 *40% Payable Loan/ *20% Payable Loan/ *10% Payable Loan/ Family *30% Deferred Loan *60% Deferred Loan '80% Deferred Loan *90% Deferred Loan Size Owner Provided Funds Owner Provided Funds Owner Provided Funds Owner Provided Funds 1% of Total Cost 75% of Total Cost 5% of Total Cost 25% of Total Cost Moderate Income Low Income Very Low Income Extremely Low Income 80% AMI - <65% AMI 65% AMI - <50% AMI 50% AMI - <30% AMI 530% AMI 1 $36,050 - 29,316 $29,315 - $22,551 $22,550 - $13,531 $13,530 or Below 2 $41,200 - $33,476 $33,475 - $25,751 $25,750 - $15,451 $15,450 or Below 3 $46,350 - $37,701 $37,700 - $29,001 $29,000 - $17,401 $17,400 or Below 4 $51,500 - $41,861 $41,860 - $32,201 $32,200 - $19,321 $19,320 or Below 5 $55,650 - $45,241 $45,240 - $34,801 $34,800 - $20,881 $20,880 or Below 6 $59,750 - $48,556 $48,555 - $37,351 $37,350 - $22,411 $22,410 or Below 7 $63,900 - $51,936 $51,935 - $39,951 $39,950 - $23,971 $23,970 or Below 8 $68,000 - $55,251 $55,250 - $42,501 $42,500 - $25,551 $25,550 or Below *In this two-part loan Part I Payable Loan is based on a percent of the total City -paid cost to rehabilitate or reconstruct The payment is payable and amortized over not less than 60 to 180 months (5 to 15 years based on cost of the project see Section III B for rehabilitation and not less than 240 months (20 years) for reconstruction at a 3 percent interest rate (APR) Part II Deferred Payment Loan is based on a percent of the total City -paid cost to rehabilitate or reconstruct This portion of the loan carries a zero percent interest rate The deferred payment loan continues until the applicant satisfies the conditions listed in the Deed of Trust and Promissory Note (executed prior to the project start date) There are no monthly payments Deferred payment loans are secured by a lien on the property The loan deferral period is not less than 60 to 180 months (5 to 15 years based on cost of the project see Section III B for rehabilitation and not less than (20 years) for reconstruction Income Limit Source U S Department of Housing and Urban Development Effective April 2001 Gross income for all household members aged 18 and above must be included to determine household's eligibility to receive assistance, however, some household members' incomes may be excluded when determining the payback category that the eligible household will be approved for They are applicant's children, 22 APPENDIX 2 City of Denton, Texas Targeted Neighborhoods Map 23 APPENDIX 3 OPTIONAL RECONSTRUCTION PROGRAM APPLICATION AND TEMPORARY RELOCATION QUESTIONNAIRE Your participation in the Optional Reconstruction Program is voluntary Reconstruction funds are limited Therefore, the Program does not cover costs necessary for household to relocate during reconstruction of property Please complete the following questionnaire This information will help our staff in determining if you will be eligible for the Optional Reconstruction Program I understand that it is my responsibility to relocate my household and that I am responsible for all costs involved to do so? Yes No I understand that as a result of reconstruction, my appraised property value may increase significantly from the amount at which it is currently valued? Yes No I understand that an increase in my property value may cause my property taxes to increase by a significant amount lam financially prepared to meet any increase? Yes No I understand that I am obligated to carry homeowner's insurance for the duration of the lien (15 years) that the City of Denton will have on my property Yes No I understand that my homeowner insurance premium will most likely increase as a result of the reconstruction I am aware that my insurance policy must cover the after -reconstruction appraised value of my property I am financially prepared to meet this increase Yes No I understand that I must request that my insurance company list the City of Denton as a "Certificate Holder" on my policy? Yes No I understand that The City of Denton is limited in the amount of funds they can spend to reconstruct a property I have been briefed on these limits and understand that my eligibility for the Optional Reconstruction Program will be granted only if it is determined that the total of all costs involved to reconstruct my property will be at or below the allowable program limit Yes No This APPLICATION was completed by Owner Name on Date Signed By signing below, I am requesting that the City of Denton's Community Services Division accept this as my application to be considered forthe Optional Reconstruction Program Applicant's Signature Date 24 2nd Applicant's Signature Date APPENDIX 4 CITY OF DENTON 4- COMMUNITY SERVICES DIVISION PROGRAM OPTIONAL RECONSTRUCTION PROGRAM REHOUSING AGREEMENT FOR APPLICANTS THIS AGREEMENT, made and entered into on (Date document will be signed), by and between the City of Denton, Texas, and (Name of applicant signing document) hereinafter referred to as Applicants This agreement covers the structure occupied at the following legal address (Legal property description of dwelling to be reconstructed) WHEREAS, The Applicant has heretofore requested and qualified forthe Home ImprovementProgram with assistancefromthe City in order to obtain adequate, decent, safe, and sanitary housing under the City's Community Development Block Grant and HOME Program, and WHEREAS, the City has determined that rehabilitation of the Applicant's residence is not a feasible alternative, and WHEREAS, the City has determined that the Community Services Program will not provide the Applicant relocation payments and assistance necessary to accomplish the voluntary relocation of the Applicantfrom the substandard, unrehababledwellingcurrentlyoccupied into an adequate, safe, and sanitary replacement dwelling NOW, THEREFORE, the City and the Applicant for and in consideration of the covenants and promises as hereinafterset forth, do agree as follows 1 The Applicant agrees to vacate permanently the currently occupied substandard dwelling within 10 days notice by the City for the need to vacate 2 The Applicant agrees and hereby authorizes the demolition and removal of the currently occupied dwelling and clearance by the City of the property The Applicant further releases the City from any and all claims arising from this action 3 The Applicant agrees to take possession and occupy the replacement dwelling when such dwelling is completed and the City determines it to be ready for occupancy The Applicant further agrees to sign any required instruments to effect this item 4 The Applicant agrees to provide and bear all financial costs necessary to relocate Applicant's household and furnishings without assistance from the City of Denton 5 The maximum budget authority for the Optional Reconstruction Program is (Maximum allowable funds for project), which includes, but is not limited to, property title search fee, the cost to demolish the existing dilapidated structure and the cost to reconstruct an adequate, decent, safe, and sanitary replacement dwelling on the original site (lot) of the dwelling vacated by the applicant 6 Applicant agrees to the time limitations as set forth in the Optional Reconstruction Guidelines in which to be moved from the substandard property Applicant' Signature CITY OF DENTON Community Development Administrator Date 25 21d Applicant' Signature Date