1999-343F \SHARED~DEPT~LGL\Our Documents\Ord~nances\99~'ntal Rehab doc
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, APPROVING
THE GUIDELINES FOR THE RENTAL REHABILITATION 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 C~ty Council of the C~ty of Denton recogmzes the need to asmst low and
moderate income fanuhes m securing safe, samtary and decent housing, and
WHEREAS, the C~ty of Denton has developed a program to rehainhtate tenant occupied houmng
umts by malang needed repmrs through ~ts Rental Rehainhtat~on Program, winch m adm~mstered by the
C~ty of Denton Commumty Development Office and funded through a federal grant, NOW,
THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION 1 That the C~ty Council approves the Rental Rehainhtat~on Program Gmdehnes and
ehg~bthty cntena attached to and made a part of tins orthnance for all purposes, and authonzes the C~ty of
Denton Commumty Development to adm~mster tins program
SECTION 2 That the C~ty Council authorizes the expenchture of funds m excess of $15,000 by
the Commumty Development Office for projects meeting program gmdehnes and criteria, subject to
comphance w~th competxt~ve b~dchng laws, where apphcable
SECTION 3 That tlus ordinance shall become effective munechately upon ~ts passage and
approval
PASSED AND APPROVED tins the ~,~/~5'~day of ~~/~1999
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
CITY OF DENTON
RENTAL REHABILITATION PROGRAM
GUIDELINES
1998 1 1999
TABLE OF CONTENTS
Introduction
Descnpt~on of Program Procedures
I Ehg~bd~ty Requirements
II Apphcat~on Processing
III Contractor Selection, Momtonng and Debarment
IV Payment to Contractor
V F~nanc~al Subsidy Mechamsm
VI Deferred Payment Loan with a 10% Per Year Forgiveness
VII Appeals Procedure
VIII Program Gu~dehnes
IX M~nlmum Rehabd~tatlon Standards
Appendices
Current Fair Market Rents Appendix I
Apphcatlon Form Appendix II
Target Neighborhoods Map Appendix III
Introduction
The C~ty of Denton Rental Housing Rehab~htabon Program ~s designed to assist Iow and
moderate-~ncome famlhes ~n secunng safe, samtary and decent housing Th~s program's
obJective ~s to rehab~htate renter occupied housing umts by making needed repairs w~th the
first pnonty as correcbng code wolatlons
The Rental Rehab~htabon Program ~s admlmstered by the C~ty of Denton's Community
Development D~ws~on and funded through a federal grant The Commumty Development
D~ws~on ~s located at 100 W Oak Street, Suite 208
The following pages contain a detailed descnpt~on of the program ~nclud~ng pohc~es and
procedures The purpose of these gu~dehnes ~s to explain to potenbal chents and the
c~bzens of Denton, the Rental Housing Rehab~htabon Program and types of assistance
available For further ~nformat~on or clarification of the gu~dehnes, contact the Community
Development D~v~slon at 940-349-7726
DESCRIPTION OF PROGRAM PROCEDURES
I ELIGIBILITY REQUIREMENTS
To be eligible for rehab~htat~on assistance, the apphcant must be a c~bzen of the
United States or a legal resident ahen Also, the apphcant's primary residence
must be w~thm the City of Denton The apphcant must be the owner of a rental
unit w~th~n a targeted neighborhood and should hold fee s~mple btle to the
property The income of apphcants cannot be more than 150% of the median
income for the Dallas metropohtan area Below ~s a table that ~nd~cates the
maximum income level based on family size
~ousehel~f~$1ze Maximum Owner Income
1 $ 57,150
2 $ 65,250
3 $ 73,500
4 $ 81,600
5 $ 88,200
The current tenants of the umt to be rehab~htated must be Iow or moderate
Income Low/Moderate ~ncome is defined as below 80% of the current Dallas
area median ~ncome hmlts adjusted for family s~ze The following table shall be
used to estabhsh a tenant's ehg~b~hty based on gross family ~ncome and family
SiZe
~euseheld Sl~e Maximum Tenant Income
1 $ 30,450
2 $ 34,800
3 $ 39,150
4 $ 43,50O
5 $ 47,000
6 $ 50,5O0
7 $ 53,950
8 $57,450
The tenant's statement of Income shall be venfied by contacting the tenant's
employer and/or obta~mng a copy of the tenant's latest ~ncome tax return Annual
Page 4
income ~ncludes earmngs (wages, pensions, etc ) spouse's earnings, ~nterest
from stocks, bonds, ~ncome from real estate, pubhc assistance, etc Also
,~ncluded ~s any amount regularly contributed by any other adult member of the
famdy
Apphcants must also exhibit the ability to pay monthly property expenses
~ncludlng mortgage payments, taxes, ~nsurance, utdlty bills, etc All property
taxes assessed by the various taxing agencies m Denton County must be pa~d
~n full
II APPLICATION PROCESSING
Any property owners w~shlng to apply for Rental Rehabd~tatlon assistance must
complete the apphcatlon and all other required forms ~ncluded ~n the proposal
packet All ~nformat~on on the completed apphcat~ons wdl be verified by the
Commumty Development staff If any ~nformat~on ~s found to have been
~ntent~onally falsified, the apphcat~on wdl be rejected and the apphcant wdl not be
allowed to reapply If the apphcant is determined to be ehglble for the program,
a prahm~nary ~nspectlon will be made of the dwelhng unit The dwelhng umt must
meet certain standards to be considered eligible for rehabdltat~on These
standards are hsted below
1 The umt(s) must be located w~th~n the recogmzed Rental Rehabdltat~on
Target Area (Appendix 3)
2 The umt(s) must not be situated ~n the Designated Flood Plain Area
3 The unit(s) must be classified as a renter-occupied structure
4 The umt(s) must be ~n an ex~st~ng cond~bon that would permit rehabd~tat~on
to bring the structure to meet current C~ty of Denton building codes
5 The umt(s) must be serviced by a C~ty approved water supply, samtary
sewer and electrical system
6 The unit must be two bedroom or larger Preference wdl go to three
bedroom and four bedroom umts
Prolect Select~on
Project select~on wdl be based upon an analys~s of the following factors
Location of unit
Page 5
Number of bedrooms
Owner's abd~ty to obtain private financing
Number and extent of major health and safety v~olat~ons to be corrected
Tenant displacement (preference gwen to no d~splacement)
Economic feas~bdlty
Amount of subsidy required
Owner's Equity ~n property
Potential ~mpact on neighborhood
Track record of landlord ~n Iow ~ncome tenant placement
Management and maintenance capabd~t~es
Quality of rehabd~tatlon plan
Access~bdlty or adaptab~lity of unit for hand~capped tenants
Commitment by landlord to and/or likelihood of Iow ~ncome tenant placement
III CONTRACTOR SELECTION. MONITORING AND DEBARMENT
Contractors participating ~n the Rental Rehabdltat~on Program wdl be selected by
the eligible property owner The property owner wdl be required to solicit at least
two b~ds from contractors based on the prahm~nary work speclficabons completed
by the CD ~nspector The property owner shall also be responsible for supplying
all b~dders with a Commumty Development Contractor's Packet that includes the
contractor ~nformat~on sheet, performance manual, general spec~flcabons for
workmanship, all insurance and bonding reqmrements, a contractor's el~g~bd~ty
certification form and a copy of the preliminary work wnte-up Bid proposals and
all other required forms from the contractors shall be submitted to Commumty
Development D~ws~on for review
Acceptable bid proposals must fall within a ten percent (10%) margin of the cost
estimate developed by the community development ~nspector THE CITY OF
DENTON AND/OR THE PROPERTY OWNER RESERVE THE RIGHT TO
REJECT ANY AND ALL BIDS Any contractor whose name appears on the most
current HUD Debarred Contractor's L~st will not be eligible to participate in th~s
program
Once the contractor has been selected and approved, a contract agreement
must be s~gned Before the contractor can start work, the property owner must
issue a not~ce to proceed
The contractor's work wdl be momtored by the property owner, the Commumty
Development staff and the C~ty of Denton budding code ~nspectors If the
property owner considers any work done by the contractor to be unsatisfactory
or ~ncomplete, the property owner should adwse the contractor of the
d~screpancy and ask that ~t be corrected
Acceotance of Work
Page 6
1 F~nal Inspection - In order for the contractor to close out a rahablhtat~on job,
a final ~nspecbon shall be made by the C~ty of Denton building code
~nspector, the Community Development Inspector, and the property owner
If the final ~nspecbon results ~n no additional work or no specified
corrections, the property owner shall s~gn the contractor's release form
whIch states that all work has been completed to their (property owner's)
satisfaction The building code ~nspector shall s~gn a final ~nspecbon form
to confirm the same At th~s time, the contractor ~s required to submit to the
property owner cop~es of all warrant~es and releases of hens from
subcontractors and supphers The Commumty Development staff w~ll not
authorize payment to the contractor until these documents are properly
completed and submitted to the property owner and cop~es prowded to the
Commumty Development Division
2 Warranty of Work - As stated ~n the rehab~htat~on contract, the contractor
shall guarantee the work performed for a penod of at least one year from
the date of final acceptance The owner ~s responsible for periodic rewew
of the work
Contractor Debarment
A contractor w~ll be declared ~nehg~ble to participate ~n projects funded by the C~ty
of Denton's Housing Rehab~htatlon Program for one or more of the following
causes
1 Failure to complete a project w;th~n the prescribed contract penod
2 Failure to complete warranty repairs w;th~n a reasonable bme period
3 Failure to use hcensed plumbing and electrical subcontractors
4 Failure to obtain proper ~nsurance, ~e, both hab~hty and worker's
compensabon
5 Failure to complete work ~n accordance w~th program specifications and/or
accepted standards of workmanship
6 Failure to pay all subcontractors working on the project appropnately and/or
submit affidawts of payment s~gned by all subcontractors
7 Failure to obtain proper permits for work ~n progress
Contractors w~ll be not~fied of their proposed debarment and w~ll be afforded the
opportumty to comment or appeal the action All appeals must be made m
wnt~n(3 to the Community Development D~ws~on at least 15 days after the date
of the not~ficabon letter
Page 7
IV PAYMENT TO CONTRACTOR
The contractor shall receive payment for all completed contracts within 15
working days after final inspecbon and approval of all work Ten percent (10%)
of the total contract amount wdl be w~thheld for 30 days At the end of th~s t~me,
the property owner must approve release of contingency funds
An "All B~lls Pa~d" affidavit or release of hen from all subcontractors and supphers
must be submitted before payment Rental rehabd~tabon partial payment
minimum are as follows projects over 50,000 at least 10% per draw, projects
under 50,000 50% and final payment
V FINANCIAL ASSISTANCE OPTIONS
Owners of rental umts are provided w~th two assistance options
1) Owners wdl be provided w~th up to 25% of the amount necessary to
rehabd~tate the property Funds wdl be provided as a 10-year deferred
loan At the end of the 10-year penod, ~f all program gu~dehnes have been
met, the loan wdl be forgiven
2) Owners w~ll be prowded w~th up to 50% of the amount necessary to
rehabd~tate the property The first 25% wdl be a deferred loan as descnbed
above Any amount over 25% of the cost of the rehabdltat~on wdl be a loan
w~th a 2% ~nterast rate There wdl be a 10-year loan term
Opbon 1 wdl provide no more than the following dollar amounts three or four
bedroom-S6,000, two bedroom-S5,000 Opbon 2 wdl allow owners to double that
mlmmum though they must pay back anything over 25% of the total rehabd~tat~on
cost Owners are required to sign a contract and a hen wdl be placed on the
property for the 10-year period Owners ars rsquirsd to maintain the property
and affirmatively market the property to Iow and moderate income
households.
* All project funding contributed by the owner wdl be placed in an escrow account
w~th the City of Denton pnor to contract execution
The owner must also comply w~th the terms of the note and mortgage that
include the following
1 No conversion to condomlmums or any type of cooperabve ownership for
the 1 O-year duration of the hen
2 No d~scnminabon against tenants rece~wng Federal, State or local rental
assistance for the 10-year duration of the hen
3 The project must be maintained according to adopted C~ty of Denton
budding codes ~n effect dunng the year ~n which the rehabd~tabon took
place
Page 8
4 The owner must affirmatively market vacant un~ts for the ten-year duration
of the hen
5 The umt w~ll be made available and leased to persons whose income ~s less
than 80% of the area median ~ncome
If the owner wolates any of these rastnct~ons, the entire amount of the loan less
10% for each full year after completion of the rehab~htabon of the un~ts unbl the
t~me of default, will be due and payable ~n full ~mmed~ately after the owner ~s
nobfled that the loan must be rapa~d
VI PROGRAM GUIDELINES
1 Property owner agrees to comply w~th all HUD requirements to not
d~scrlmmate upon the bas~s of race, ethn~c~ty, rehg~on, gender, d~sab~hty
status or family status ~n the sale, lease, rental, or use of occupancy of the
subject property
2 Property owner agrees to not award any contract for rehab~htat~on work to
be pa~d for ~n whole or m part w~th the proceeds of the grant, to any
contractor who, at the t~me, ~s ~nehg~ble under the prows~ons of any
apphcable ragulat~ons ~ssued by the Secretary of Labor, Umted States
Department of Labor, or the Department of Housing and Urban
Development to receive an award of such contract
3 The tenant w~ll continue to occupy the premises dunng the rehab~htabon
Any tenant raqu~rad to move temporanly or permanently as a result of the
rehab~htat~on*, must be pa~d relocat~on/d~splacement costs as outhned m
the C~ty's Tenant Assistance Pohcy
*Any d~splacement including tenants who move out as a result of their
~nab~hty to pay increased rents, are considered d~splaced D~splacement
costs are the respons~b~hty of the property owner
4 Property owner agrees that existing house ubhty services w~ll be made
available to the contractor w~thout charge as follows electnc~ty, gas, water
and telephone (local calls only)
5 Property owner agrees that the City shall be the agent for the owner and as
such agent shall hold both the owner's private funds and all grant funds ~n
escrow for the purpose of d~sbursement thereof to the contractor
6 Property owner agrees that ~t ~s h~s/her sole responslb~hty to see that the
contractor completes the work specified ~n h~s contract to the owner's
sat~sfacbon and that the C~ty of Denton has no respons~b~hty for any
Page 9
defects, faulty work or ~ncomplete work by the contractor The owner
further agrees that the C~ty has no hab~hty for warranty of any of the
workmanship or materials furnished by the contractor under the contract
The owner further agrees that latent or h~dden conditions ~n the property
which were not ~ncluded ~n the ong~nal ~nspecbon and work write-up of the
C~ty are not the respons~b~hty of the contractor nor of the City, but remain
the respons~b~hty of the owner
7 As part of the consideration for providing the funds to rehab~htate property
as described here~n, the property owner agrees to maintain and keep the
property ~n good repair after the completion of the work to be performed by
contractor, taking ~nto consideration the ab~hty of the owner to do so The
property owner also agrees to maintain the property up to City of Denton
Building code standards that were ~n effect when the rehablhtat~on was
completed Owner agrees to do th~s dunng the term of the loan agreement
and understands that ~f at anytime the property fails to meet these code
standards, the loan amount w~ll become due immediately
8 The owner shall ~ssue a wntten Notice to Proceed within thirty (30) days
from the date of acceptance of the contractor's b~d and proposal If the
Not~ce to Proceed ~s not received by the contractor w~th~n th~s 30-day
period, the contractor has the option of w~thdraw~ng h~s/her bid and
proposal If the contractor chooses to do th~s, a written notice must be
dehvered to the owner w~th a copy to the City The contractor shall not
begin the work to be performed until receipt of written Not~ce to Proceed
from the owner after which the contractor shall beg~n the work w~th~n ten
(10) calendar days of the date of sa~d Notice and shall complete sa~d work
w~th~n sixty (60) days or as agreed to in the Rehablhtat~on contract
9 The contractor shall not assign the contract w~thout wntten consent of the
owner and the C~ty and/or its agent
10 The contractor shall not be responsible for any delays ~n the completion of
work due to the following
A Any acts of the government, ~nclud~ng controls or restnctlons upon or
requisitioning of matenals, equipment, tools or labor by reason of war,
National Defense or any other national emergency
B Any acts of the owner
C Causes not reasonably foreseeable by the part~es to th~s contract at
the t~me of the execution of the contract which are beyond the control
and w~thout the fault or neghgence of the contractor, ~nclud~ng but not
hm~ted to acts of God or of the pubhc enemy, acts of another
contractor m the performance of some other contract w~th the owner,
rites, floods, ep~demms, quarantine restnct~ons, strikes, freight
Page 10
embargoes and weather of unusual seventy such as hurricanes,
tornadoes, etc
D Any delay of the subcontractor occasioned by any of the causes
specified ~n Subparagraphs (A) (B) and (C) above, prowded that the
contractor promptly (w~th~n 10 days) notifies the Owner ~n writing of
the cause of the delay If the facts show the delay to be properly
excusable, the owner shall extend the contract t~me by a period
commensurate w~th the period of excusable delay
11 The contractor shall not be held responsible for preexisting wolatlons of law
~nclud~ng but not restricted to zomng or building code regulations at the
property hsted ~n the contract Before beginning work, the contractor shall
examine the work write-up for comphance w~th the applicable ordinance
and codes for the new or replaced work and shall ~mmedlately report any
dmcrepancy to the owner Where the requirements of the work wnte-up fa~l
to comply w~th such apphcable ordinances or codes for the new or replaced
work, the owner and the C~ty w~ll adjust the contract by change order to
conform to such ordinances or code and make appropnate adjustment ~n
the contract pnce unless waivers ~n writing covenng the d~fference have
been granted by the proper authority
12 The contractor shall comply w~th all non-dlscnmmabon clauses ~ncluded in
the contract, non-comphance may result ~n termination of the contract
13 B~ds or proposals w~ll be submitted at the bidder's nsk and the C~ty and/or
the owner reserve the nght to dechne funding for projects not ~n comphance
w~th the gu~dehnes
14 Subcontractors shall be bound by the terms and cond~bons of the contract,
~nsofar as ~t apphes to their work Thru shall not reheve the general
contractor from the full respons~b~hty to the owner for the completion of all
work to be executed under thru agreement and he shall not be released
from th~s respons~b~hty by any subcontractural agreement he may make
with others
15 When adjacent property ~s affected or endangered by any work done under
this contract, ~t shall be the respons~b~hty of the contractor to take whatever
steps are necessary for the protection of the adjacent property and to not~fy
the owner thereof of such hazards
16 Repairs shall be made to all surfaces damaged by the contractor resulting
from hm/her work under th~s contract at no additional cost to the owner
Where "repair of exmt~ng work" ~s called for by the contract, the feature shall
be placed ~n "equal to new condition" either by patching or replacement
All damaged, loose or rotted parts shall be removed and replaced and the
finmhed work shall match adjacent work in design and dimension
Page 11
17 After the final inspection and acceptance by the owner of all work under the
contract ~nclud~ng cleanup, the contractor shall submit to the owner for
approval a requisition for payment When the required warranties and other
required documents have been submitted and the release of hens has been
executed by the contractor, the final payment will be made The payment
will ~nclude any amounts remaining due under the contract as adjusted ~n
accordance w~th approved change orders Payments w~ll be made w~th~n
15 days of formal requisition for payment Part~al payments will be made
at d~scretlon of the owner w~th the consent of the City
18 A Rehab~htat~on Loan may be made to cover the cost necessary to bnng the
dwelhng ~nto conformance with City of Denton Codes The two categones
of repairs hsted below are to be ~ncluded as pnonty ~tems
A Reou~red Repairs Code wolat~ons which create hazardous conditions
~n regard to safety or health w~ll generally ~nvolve the basic heabng,
plumbing or electncal systems
B Recommended Repairs Code corrections or preventive maintenance
efforts which should be undertaken to avoid more costly future action
(1) Heating, plumbing and electrical improvements
(2) Weathenzat~on
(3) Exterior work such as roofing, siding, painting, step and porch
repair and retaining walls
(4) Interior work such as renovation and repair of existing kitchen
and bath fac~ht~es
19 The Denton Central Appraisal D~stnct automatically reappraise any house
where a building permit ~s issued Participants ~n the Rehab~htat~on
Program should be aware that the appraised value of their property might
~ncrease whmh consequently may cause their yearly property taxes to
increase The pohcy shall be thoroughly explained to any person applying
for rehablhtat~on assistance
20 Change orders may be made to cover an item of work that cannot be
determined until sometime dunng the course of the rehab~htatlon work
Change orders w~ll be considered as follows
A Change orders are used to add work necessary to correct inc~p~ent
~tems that have been found to be defective after work ~s ~n progress
but were not anticipated at the t~me the contract was executed
B The change order amount is limited to a maximum of 10 percent (10%)
of the total contract amount If ~t ~s necessary to request a change
Page 12
order to make reequlred repairs and the contract ~s already at the
maximum amount, a work ~tem of less pnonty w~ll be deleted from the
b~d proposal in order to compensate for the added amount
C Change orders w~ll be used when ~t ~s necessary to delete work from
a contract for any reason When items are deleted from the contract,
they shall be at their previously b~d amount When ~tems are deleted,
but do not have specific costs, m such cases the contract shall be
reduced by negotiating the cost at preva~hng rates
D All change orders shall be executed by the property owner, contractor,
and a Commumty Development official
E Except for the purpose of affording protection against any emergency
endangenng hfe or property, the Contractor shall make no change in
the work or rehablhtat~on, prowde any extra or additional work or
supply addlbonal labor, services or materials beyond that actually
reequ~red for the execution of the contract
F All change order requests must be submitted by the contractor, s~gned
by the homeowner and approved by Community Development No
claim for an adjustment of the contract price by the contractor or
homeowner will be valid unless this ~s done
G The approval of a change order shall constitute authorization by the
property owner and Community Development to change the loan
amount equal to the cost of the work added or deleted, unless all
available funds have been ut~hzed If th~s ~s the case, the owner must
absorb the total cost or delete non-code items ~n order to pay for the
work descnbed ~n the change order
H It may be necessary to change the t~me of completion due to the
addition of certain work ~tems or delays that are beyond the
contractor's control
21 If the work completed ~s not in accordance w~th the construction contract,
Commumty Development shall adwse the property owner of the non-
comphance who then shall obtain appropriate action from the contractor
No payment shall be processed on a construction contract until a
contractor has satisfactorily completed all necessary corrective action
22 The owner shall be able to select the color and style of certain matenals 0 e
carpet, floor covenng, panehng, paint, etc )
23 The contractor warrants that all matenals, fixtures, and equipment furnished
by the contractor and ~ts subcontractors shall be new, of good t~tle and that
Page13
the work w~ll be done in a neat and workmanhke manner Neither the final
payment nor any provision m the contract nor part~al or entire use or
occupancy of the premises by the owner shall constitute an acceptance of
work not done in accordance w~th the Contract or reheve the Contractor of
habihty ~n respect to any express warranties or respons~b~hty for faulty
materials or workmanship The contractor shall promptly remedy any
defect ~n the work and pay for any damage to other work resulting
therefrom which may appear w~th~n a period of one year from the date of
final acceptance of the work unless a longer penod ~s specified The owner
w~ll give notice of observed defects with reasonable promptness
24 Mobile homes are not ehg~ble for rehab~htat~on
25 Interest of certain federal and other officials
A No member or Delegate to the Congress of the Un~ted States and no
Resident Commissioner and no federal employee shall be admitted
to any share or part of th~s contract or to any benefit to arise from
same
B No member of the governing body of the C~ty and no other pubhc
official of or w~th~n the C~ty or County who exercises any functions or
responslb~ht~es ~n connection w~th the administration of the Community
Development Block Grant Program and no other employee of the
Department of Planning and Community Development who exercises
any such functions or respons~b~ht~es shall have any interest, d~rect or
~nd~rect, ~n rehab~htatlon proceeds which ~s ~ncompatlble or ~n conflict
w~th the discharge or fulfillment of h~s functions and respons~b~ht~es ~n
connection w~th the carrying out of the Housing Rehab~htat~on
Program The length oft~me this exclusion shall be ~n effect ~s one (1)
year following the ending of term of off~ce and shall be b~ndlng upon,
but not hm~ted to, all of the ~nd~wduals and agencies here~n descnbed
26 The property owner agrees that for a period of ten years after the project
is completed not to convert the rehab~htated umts to condom~mum
ownership If the owner does convert rehab~htated units to condomlmum
ownemh~p, the entire loan amount shall be due ~mmedlately
27 The property owner agrees not to d~scnmmate against prospective tenants
on the basis of their receipt of or ehg~b~hty for, housing assistance under
any Federal, State or local housing assistance program, on the bas~s that
the tenants have a minor child who will be residing w~th them, or on the
bas~s that they are a handicapped ~ndiv~duals
28 The property owner agrees to maintain the rehab~htated property up to
adopted City of Denton Building Code Standards In effect the year ~n which
Page 14
the rehabilitation was completed This w~ll be apphcable for a penod of at
least ten years after the project is completed
29 The property owner agrees to comply w~th applicable lead-based paint
regulations
33 The property owner agrees to comply w~th the C~ty of Denton's Tenant
Assistance Pohcy, including execution of all tenant nobficat~ons outhned ~n
the policy Cop~es of all tenant correspondence must be submitted to the
Commumty Development D~ws~on
VII MINIMUM REHABILITATION STANDARDS
Roofs
Roofs should not leak and have no evidence of rotted decking, fascia or soffit
Any roof w~th two or more layers of roofing must be stripped to the decking If
~t ~s determined a new roof is necessary the decking must be checked for broken
or rotted decking and shall be repaired or replaced as needed Where new
decking ~s required the material shall be one-half ~nch plywood or one-half ~nch
waferboard to be used w~th H clips between sheets All roofs that are stripped
shall be replaced w~th new felt paper, the proper flashing and metal dnp edge
w~th 240 pound shingles Any roof w~th less than a 4/12 pitch shall be covered
w~th rolled roofing, with at least 12 inches of lap, ~f installation of rolled roofing is
not sufficient to promote proper run off roof w~ll be rebmlt
Siding and Tr, m
All exterior s~dlng and trim shall be free of holes, cracks or rotted material that
m~ght admit moisture ~nto walls New s~d~ng may be apphed only ~f the cost of
new md~ng and ~nstallabon is comparable to the repair and pa~nbng costs of the
ex~stmg s~d~ng
Windows
All windows and hardware shall operate sabsfactonly Cracked or broken
w~ndows shall be replaced W~ndow glazing shall be weather bght and windows
shall be weather stripped so as not to allow entry of a;r and water around the
glass, sashes or w~ndow casings All w;ndows shall have screens and working
locks
Drainage
The grade of concrete or d~rt should dra~n at least five feet away from foundabon
walls
Page15
Site Improvements
All replaced concrete surfaces are to be level w~th the widths to match the
ex~stmg surfaces
All steps both concrete or wood that pose a threat to the occupants shall be
repaired or, ~f necessary, replaced w~th treated matenal or concrete
Foundations and Piers
Skirting shall be s~x (6) ~nches underground level If it ~s necessary to ~nstall
skirting, new 22 or 24 gauge skirting shall be used
Kitchens
Kitchens shall have a specific area that contains a s~nk with hot and cold runmng
water, counter workspace, and space for storage of cooking utensds
Stairs
All stairs shall provide for the safety of ascent and descent All treads and nsers
should show no evidence of breakage or have evidence of excessive wear All
stairs shall be equipped w~th handrails
Utility Areas
Gas or od fired water heaters or furnaces shall not be located in the bathrooms
or bedrooms In addition to all plumbing and electncal codes, water heaters and
furnaces shall be enclosed with a sealed door and adequate upper and lower
combustion air All washer and dryer hookups must meet C~ty Code
Structural System
The wood, masonry or steel components shall be ~n serviceable condition for the
expected useful hfe of the rehabd~tated budding Structural members that are ~n
seriously detenorated condition shall be replaced
Sagging and unleveled floors shall be raised and stabd~zed as level as possible
without causing interior damage
Termite mspecbon and treatment shall be done ~f ewdence of active ~nfestat~ons
exist A cerbfled pest control company wdl carry out the treatment and present
documents of proof
Page16
Electrical System
All replacement of ex~st~ng wrong and equipment shall be done ~n conformance
w~th the National Electnc Code and the C~ty of Denton Code Any potential
source of electrical hazard or ~gn;t~on of combustible material shall be corrected
GFCI outlets shall be used m bathrooms, k~tchen, garage, and exterior
receptacles Additional outlets shall be added to ehmmate extens;on cords and,
at the request of the C~ty Inspector, to meet C~ty Codes
Plumbing
The plumbing system shall operate free of fouhng and clogging, and not have
cross-connections whmh permit contamination of the water supply or back
s~phonage between fixtures
All s~nks, lavatones, water closets, water heater, and other plumbing fixtures shall
have accessible cutoff valves All fixtures shall have P-traps, necessary vents
and be propedy connected to a pubhc or pnvate sewage d~sposal system All
sewer lines shall have accessible cleanouts All water heaters shall be ~nstalled
w~th double wall vent stack, a pop-off valve, and overflow to the extenor of the
structure
Mechanical Equipment
All gas fired heating un~ts must be vented w~th double wall p~pe and proper upper
and lower combustion air The umt shall not be ~nstalled ~n a hv~ng area such as
bedrooms or under stairways
R~g~d gas p~pe must be used to supply heating umts w~th a maximum of three (3)
feet of flexible p~pe from the stop to the apphance All ductwork shall be properly
sealed from the heat soume to the register vent and from the return a~r supply to
the heat source A gas p~pe pressure test ~s required All leaks must be
repaired
Insulation and Weatherlzatlon
A R-30 ~nsulat~on value ~n the attic shall be required
Exterior Doors
All extenor doors shall be sohd core All locks shall be capable of t~ghtly secunng
the door and shall be readily operable from the inside w~thout the use of keys
All exterior doors shall be weather stnpped so that there ~s no s~gmficant entry
of a~r or water ~nto the structure
Porches and Decks
Page 17
All pomhes and decks shall be safe and capable of supporting anticipated loads
All porches and decks in detenorated condition and which serve no useful
purpose or whmh are not economically repairable shall be removed
Porches and decks 30 ~nches above grade shall have guardralls and flights of
stairs w~th four or more nsers They shall have a handrail on at least one s~de
Gutters and Downspouts
Gutters and downspouts should ex~st where they are deemed necessary to
promote proper drainage Gutters will not normally be ~nstalled if they do not
already ex~st
Downspouts that cannot be connected to drain tiles shall have splash backs w~th
proper s~te grading
Chimneys and Vents
Furnace and water heater vents shall be double wall vent p~pe
Ex~st~ng unlined masonry chimneys hawng open mortar joints or cracks shall be
removed or made safe by ~nstallat~on of a UL approved flue liner
Vent-a-hood stacks shall be vented through the roof
Interiors
All floors, walls, and cethngs shall be maintained ~n good, clean, and samtary
condition All peehng paint, cracked or loose plaster, and other defective surface
conditions shall be ehmlnated All doors shall be operational
Carpet and vinyl that ~s badly worn, torn or too d~rty to be cleaned shall be
replaced This shall be determined by the C D Inspector Exmt~ng carpet shall
be cleaned with a commercial steam cleaner, ~f necessary
Bathrooms
An operational water closet, tub or shower, and lavatory should be ~n the
bathroom Hot water should flow to the lavatory and tub or shower Cold water
should be supplied to all fixtures Either a window or an exhaust fan must be
present to properly vent the bathroom
Cabinets
Built-in k~tchen cabinets shall be repaired up to 50 percent of the cost of new
cabinets Bathroom cabinets are not required
Page 18