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1998-321Homeowner Rehab Ord doc O ANCENO/ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, APPROVING GUIDELINES FOR OPERATION OF THE CITY OF DENTON HOMEOWNER 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 City Council of the City of Denton recognizes the need to assist low and moderate income families in secunng safe, sanitary and decent housing, and WHEREAS, the City of Denton participates in a Homeowner Rehabilitation 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 I That the City Council approves the Homeowner Rehabilitation Program Gmdelmes and Homeowner Rehabilitation Program Eligibility Criteria which is attached hereto and made a part of this orchnance for all purposes as Exhibit "A" and authorizes the City of Denton Commumty Development Office to admLmster this program SECTION II That the City Councd anthonzes the expenditure of funds m excess of $15,000 by the Commumty Development Office for projects meeting program guidelines and criteria, subJeCt to compliance with competitive bidding laws, where applicable SECTION III That this ordinance shall become effective immediately upon its passage and approval ' aa of 1998 PASSED AND APPROVED tins the ~ d y , ATTEST JENNIFER WALTERS, CITY SECRETARY APPI~VED A. S~..T..Q ! .I~,GA~..FORM HERBER .T~_~ROUTY, A_TTORNEY CITY OF DENTON RENTAL REHABILITATION PROGRAM GUIDELINES 1998 1 '1999 TABLE OF CONTENTS Introduction Descnpt~en of Program Procedures I Ehg~b~hty Requirements II Apphcatlon Processing III Contractor Select~on, Momtonng and Debarment IV Payment to Contractor V F~nanc~al Subsidy Mechanism VI Deferred Payment Loan w~th a 10% Per Year Forgiveness VII Appeals Procedure VIII Program Guidehnes IX M~mmum Rehab~htat~on Standards Appendices Current Fair Market Rents Appendix I Apphcat~on Form Appendix II Target Neighborhoods Map Appendix III Introduction The C~ty Of Denton Rental Housing Rehab~htat~on Program is designed to asmst Iow and moderatehncome famihes ~n securing safe, sanitary and decent housing Th~s program's objective is to mhab~htate ranter occupied housing umts by making needed rapa~rs w~th the first priority as correcting code wolat~ons The Rental Rehab~htat~on Program ~s adm~msterad by the C~ty of Denton's Commumty Development D~v~sion and funded through a federal grant The Commumty Development D~v~s~on ~s located at 100 W Oak Street, Suite 208 The following pages contain a detailed description of the program ~nclud~ng pohcles and procedures The purpose of these gu~dehnes ~s to explain to potential clients and the c~tlzens of Denton, the Rental Housing Rehab~htat~on Program and types of assistance available For further ~nformat~on or clarification of the gu~dehnes, contact the Community Development Diwsion at 940-349-7726 DESCRIPTION OF PROGRAM PROCEDURES I ELIGIBILITY REQUIREMENTS To be ehg~ble for rehab~htat~on assistance, the apphcant must be a citizen of the Umted States or a legal resident ahen Also, the apphcant's primary residence must be w~th~n the C~ty of Denton The apphcant must be the owner of a rental umt w~th~n a targeted neighborhood and should hold fee simple btle to the property The income of apphcants cannot be more than 150% of the median ~ncome for the Dallas metropohtan area Below ~s a table that ~nd~cates the maximum income level based on family s~ze h~seh~[dlSize, Maximum Owner Income 1 $ 57,150 2 $ 65,250 3 $ 73,5O0 4 $ 81,600 5 $ 88,200 The current tenants of the unit to be rehabd~tated must be Iow or moderate ~ncome Low/Moderate ~ncome ~s defined as below 80% of the current Dallas area median income hm~ts adjusted for famdy size The following table shall be used to establish a tenant's ehg~bdlty based on gross famdy ~ncome and family ~lZe Maximum Tenant Income HeUset~eld~Stze 1 $ 30,450 2 $ 34,800 3 $ 39,15o 4 $ 43,500 5 $ 47,0o0 6 $ 50,50o 7 $ 53,950 8 $57,450 The tenant's statement of income shall be verified by contacting the tenant's employer and/or obta~mng a copy of the tenant's latest ~ncome tax return Annual Page 4 income includes earmngs (wages, pensions, etc ) spouse's earmngs, ~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 family Apphcants must also exhibit the ab~hty to pay monthly property expenses including mortgage payments, taxes, ~nsurance, utlhty b~lls, etc All property taxes assessed by the various taxing agencies in Denton County must be paid ~n full II APPLICATION PROCESSING Any property owners w~sh~ng to apply for Rental Rehablhtatlon assistance must complete the apphcat~on and all other required forms included ~n the proposal packet All ~nformat~on on the completed applications w~ll be verified by the Commumty Development staff If any ~nformat~on ~s found to have been intentionally falsified, the apphcat~on w~ll be rejected and the apphcant w~ll not be allowed to reapply If the apphcant ~s determined to be ehg~ble for the program, a prehm~nary ~nspecbon w~ll be made of the dwelling umt The dwelhng umt must meet certain standards to be considered ehg~ble for rehab~htat~on These standards are hsted below 1 The umt(s) must be located w~th~n the recogmzed Rental Rehab~htabon Target Area (Appendix 3) 2 The unit(s) must not be s~tuated ~n the Designated Flood Plain Area 3 The umt(s) must be classified as a renter-occupied structure 4 The unit(s) must be in an ex~st~ng condition that would permit rehab~htat[on to bnng the structure to meet current C~ty of Denton building codes 5 The umt(s) must be servmed by a C~ty approved water supply, samtary sewer and electrical system 6 The umt must be two bedroom or larger Preference w~ll go to three bedroom and four bedroom umts Prolect Selecbon Project select~on w~ll be based upon an analys~s of the following factors Location of umt Page 5 Number of bedrooms Owner's ab~hty to obtain private financing Number and extent of major health and safety v~olat~ons to be corrected Tenant displacement (preference g~ven to no d~splacement) Economm feamblhty 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 capab~ht~es Quahty of rehablhtat~on plan Access~b~hty or adaptab~hty of umt for hand~capped tenants Commitment by landlord to and/or hkehhood of Iow ~ncome tenant placement III CONTRACTOR SELECTION. MONITORING AND DEBARMENT Contractors participating ~n the Rental Rehab~htatlon Program w~ll be selected by the ehg~ble property owner The property owner w~ll be required to sohc~t at least two b~ds from contractors based on the prehm~nary work specifications completed by the CD ~nspector The property owner shall also be responsible for supplying all b~dders w~th a Commumty Development Contractor's Packet that ~ncludes the contractor information sheet, performance manual, general specifications for workmanship, all ~nsurance and bonding requirements, a contractor's ehg~b~hty certification form and a copy of the prehm~nary work wnte-up B~d proposals and all other required forms from the contractors shall be submitted to Commumty Development D~ws~on for rewew Acceptable b~d proposals must fall w~th~n 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 ehg~ble to partm~pate ~n 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 ~ssue a notme to proceed The contractor's work w~ll be momtored by the property owner, the Commumty Development staff and the C~ty of Denton building code ~nspectors If the property owner considers any work done by the contractor to be unsatisfactory or incomplete, the property owner should adwse the contractor of the d~screpancy and ask that it be corrected Page 6 1 F~nal Inspection - In order for the contractor to close out a rehab~htabon job, a final ~nspecbon shall be made by the C~ty of Denton bu~lding code ~nspector, the Commumty Development Inspector, and the property owner If the final ~nspect~on results in no add~tional 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) satlsfacbon The building code ~nspector shall s~gn a final ~nspect~on form to confirm the same At th~s t~me, the contractor ~s requ~rad to submit to the property owner cop~es of all warranbes and releases of liens from subcontractors and supphers The Commumty Development staff w~ll not authorize payment to the contractor unbl these documents are properly completed and submitted to the property owner and cop~es provided to the Community Development D~ws~on 2 Warranty of Work - As stated m 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 rawew of the work A contractor w~ll be declared mehglble to parbc~pate in projects funded by the City of Denton's Housing Rehab~htat~on Program for one or more of the following causes 1 Failure to complete a project w~th~n the prescribed contract period 2 Failure to complete warranty repairs w~thm a reasonable t~me penod 3 Failure to use hcensed plumbing and electncal subcontractors 4 Failure to obtain proper ~nsurance, ~e, both hab~hty and worker's compensation 5 Failure to complete work ~n accordance w~th program spec~ficabons and/or accepted standards of workmanship 6 Failure to pay all subcontractors working on the project appropriately and/or submit affldawts of payment signed 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 acbon All appeals must be made m wnt~no to the Commumty Development D~ws~on at least 15 days after the date of the nobficabon letter Page 7 IV pAYMENT TO CONTRACTOR The contractor shall receive payment for all completed contracts w~th~n 15 working days after final ~nspect~on and approval of all work Ten pement (10%) of the total contract amount w~ll 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 rehab~htat~on part~al payment m~mmum 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 units are prowded with two assistance options 1) Owners w~ll be prowded with up to 25% of the amount necessary to rehabihtate the property Funds w~ll be prowded as a 10-year deferred loan At the end of the 10-year penod, ~f all program gu~dehnes have been met, the loan w~ll be forgiven 2) Owners w~ll be provided w~th up to 50% of the amount necessary to rehab~htate the property The first 25% w~ll be a deferred loan as descnbed above Any amount over 25% of the cost of the rehabilitation will be a loan w~th a 2% ~nterest rate There w~ll be a 10-year loan term Option 1 w~ll prowde no more than the following dollar amounts three or four bedroom-S6,000, two bedroom-S5,000 Option 2 will allow owners to double that m~mmum though they must pay back anything over 25% of the total rehab~htat~on cost Owners are rrequ~red to s~gn a contract and a hen w~ll be placed on the property for the 10-year period Owners are required to roaintaln the property and afflrroatlvely roarket the property to Iow and rooderate mcoroe households. * All project funding contnbuted by the owner w~ll be placed ~n an escrow account with the City of Denton pr,or 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 condom~mums or any type of cooperative ownership for the 10-year duration of the lien 2 No d,scnm~nat,on against tenants rece~wng Federal, State or local rental ass,stance for the 10-year duration of the hen 3 The project must be ma,nta~ned according to adopted City of Denton building codes ~n effect dunng the year in which the rehabihtat~on took place Page 8 4 The owner must affirmatively market vacant umts for the ten-year duration of the hen 5 The umt will be made available and leased to persons whose ~ncome ~s less than 80% of the area median income If the owner v~olates any of these restrictions, the entire amount of the loan less 10% for each full year after complebon of the rehab~htat~on of the units unbl the bme of default, will be due and payable ~n full ~mmedlately after the owner ~s notified that the loan must be repaid VI PROGRAM GUIDELINES 1 Property owner agrees to comply w~th all HUD requ~raments to not discriminate upon the bas~s of race, ethnm~ty, rehg~on, gender, d~sab~hty status or family status in the sale, lease, rental, or use of occupancy of the subject property 2 Property owner agrees to not award any contract for rehab~htabon work to be paid for ~n whole or in part w~th the proceeds of the grant, to any contractor who, at the t~me, ~s ~nehg~ble under the provisions of any applicable regulations ~ssued by the Secretary of Labor, Un~ted 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 reqmred to move temporanly or permanently as a result of the rehab~htatlon*, must be paid relocat~on/d~splacement costs as outhned ~n the City's Tenant Assistance Pohcy *Any d~splacement includ~ng tenants who move out as a result of their ~nab~hty to pay ~ncreased rents, are considered displaced D~splacement costs are the respons~blhty of the property owner 4 Property owner agrees that ex~st~ng house ubhty services w~ll be made available to the contractor w~thout charge as follows electricity, 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 pnvate 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 respons~b~hty to see that the contractor completes the work specified ~n h~s contract to the owner's satisfaction 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 matenals furmshed by the contractor under the contract The owner further agrees that latent or h~dden conditions in the property which were not included ~n the ong~nal ~nspect~on and work write-up of the C~ty are not the respons~b~hty of the contractor nor of the C~ty, but remain the respons~blhty of the owner 7 As part of the consideration for provid~ng the funds to rehab~htate property as described herein, the property owner agrees to maintain and keep the property ~n good repair after the complebon of the work to be performed by contractor, taking into cons~derabon the ab~hty of the owner to do so The property owner also agrees to maintain the property up to C~ty of Denton Building code standards that were ~n effect when the rehablhtatlon was completed Owner agrees to do th~s dunng the term of the loan agreement and understands that if at anytime the property fa~ls to meet these code standards, the loan amount w~ll become due ~mmed~ately 8 The owner shall ~ssue a written Not~ce 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~thln th~s 30-day period, the contractor has the option of w~thdraw~ng h~s/her b~d and proposal If the contractor chooses to do th~s, a written nobce must be dehvered to the owner with a copy to the City The contractor shall not beg~n 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 said Nobce and shall complete said work within s~xty (60) days or as agreed to ~n the Rehab~htabon contract 9 The contractor shall not assign the contract w~thout written consent of the owner and the City and/or ~ts 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, includ~ng controls or restrictions upon or requ~s~tlomng 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 parbes 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 ~n the performance of some other contract w~th the owner, fires, floods, epidemics, quarantine restnct~ons, strikes, freight Page10 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) nobfies 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 penod commensurate w~th the penod of excusable delay 11 The contractor shall not be held raspons~ble for praex~sbng v~olat~ons of law ~nclud~ng but not rastncted to zomng or building code regulations at the property hsted ~n the contract Before beg~nmng work, the contractor shall examine the work write-up for comphance w~th the apphcable ordinance and codes for the new or replaced work and shall ~mmed~ately report any d~screpancy to the owner Where the raqu~raments 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 appropriate adjustment ~n the contract price unless waivers ~n writing covenng the d~fferance have been granted by the proper authonty 12 The contractor shall comply w~th all non-d~scnm~nat~on clauses ~ncluded ~n the contract, non-comphance may result ~n termination of the contract 13 B~ds or proposals w~ll be submitted at the b~dder's risk and the C~ty and/or the owner reserve the right to dechne funding for projects not ~n comphance w~th the guidehnes 14 Subcontractors shall be bound by the terms and conditions of the contract, ~nsofar as ~t apphes to their work Th~s 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 raspons~bihty by any subcontractural agreement he may make wtth others 15 When adjacent property ~s affected or endangered by any work done under th~s contract, ~t shall be the respons~b~hty of the contractor to take whatever steps ara 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 rasult~ng from h~s/her work under th~s contract at no additional cost to the owner Where "repair of existing work" ~s called for by the contract, the feature shall be placed ~n "equal to new cond~bon" e~ther by patching or replacement All damaged, loose or rotted parts shall be removed and replaced and the fimshed work shall match adjacent work ~n design and d~mens~on Page 11 17 After the final ~nspect~on and acceptance by the owner of all work under the contract including cleanup, the contractor shall submit to the owner for approval a reqms~t~on for payment When the raqu~rad warranties and other raqu~red documents have been submitted and the release of hens has been executed by the contractor, the final payment w~ll be made The payment will include any amounts rema~mng due under the contract as adjusted ~n accordance w~th approved change orders Payments w~ll be made w~thln 15 days of formal requ~slbon for payment Partial payments will be made at d~scret~on of the owner w~th the consent of the C~ty 18 A Rehab~htation Loan may be made to cover the cost necessary to bnng the dwelhng ~nto conformance w~th C~ty of Denton Codes The two categones of repairs hsted below ara to be ~ncluded as pnonty ~tems A ~ Code wolat~ons which create hazardous conditions in regard to safety or health w~ll generally revolve the basic heating, plumbing or electrical systems B Re(;ommended Repairs Code corrections or prevent~re maintenance efforts which should be undertaken to avoid more costly future acbon (1) Heabng, plumbing and electncal ~mprovements (2) Weathenzatlon (3) Extenor work such as roofing, s~d~ng, painting, step and porch rapa~r and retaining walls (4) Interior work such as renovation and repair of ex~st~ng k~tchen and bath fac~htms 19 The Denton Central Appraisal D~stnct automabcally reappraise any house where a building permit is issued Participants in the Rehabilitation Program should be aware that the appraised value of their property m~ght increase which consequently may cause their yearly property taxes to ~ncraase The policy shall be thoroughly explained to any person applying for rehab~htation assistance 20 Change orders may be made to cover an ~tem of work that cannot be determined until sometime during the course of the rahab~htatlon work Change orders w~ll be considered as follows A Change orders are used to add work necessary to correct ~nc~p~ent items that have been found to be defective after work ~s ~n progress but were not antmlpated at the bme the contract was executed B The change order amount ~s 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 reequ~red 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 ~n 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 ~tems are deleted from the contract, they shall be at their previously b~d amount When ~tems are deleted, but do not have specific costs, ~n such cases the contract shall be reduced by negobat~ng 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 life or property, the Contractor shall make no change ~n the work or rehab~htabon, prowde any extra or additional work or supply additional labor, servmes 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 Commumty Development No claim for an adjustment of the contract pnce by the contractor or homeowner will be vahd unless th~s ~s done G The approval of a change order shall consbtute authonzat~on by the property owner and Commumty 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 ~tems ~n order to pay for the work descnbed in the change order H It may be necessary to change the t~me of completion due to the add~bon of certain work ~tems or delays that are beyond the contractor's control 21 If the work completed ~s not ~n accordance w~th the construcbon 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 satlsfactonly completed all necessary correct~ve acbon 22 The owner shall be able to select the color and style of certain matenals (~ 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 Page 13 the work w~ll be done ~n a neat and workmanhke manner Neither the final payment nor any prows~on ~n the contract nor parbal or enbre use or occupancy of the premises by the owner shall consbtute an acceptance of work not done ~n accordance w~th the Contract or reheve the Contractor of hab~hty ~n respect to any express warrant~es or responslb~hty for faulty materials or workmanship The contractor shall promptly remedy any defect ~n the work and pay for any damage to other work resulbng therefrom which may appear w~th~n a penod of one year from the date of final acceptance of the work unless a longer penod ~s specified The owner w~ll g~ve not~ce of observed defects w~th 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 Umted 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 anse 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 exero~ses any functions or respons~blht~es ~n connection w~th the admlmstrat~on of the Commumty Development Block Grant Program and no other employee of the Department of Pianmng and Commumty Development who exercises any such functions or respons~b~ht~es shall have any ~nterest, d~rect or ~nd~rect, ~n rehab~htat~on proceeds which ~s ~ncompat~ble or ~n conflict with the d~scharge or fulfillment of h~s functions and respons~b~ht~es ~n connection with the carrying out of the Housing Rehab~htat~on Program The length oft~me th~s exclusion shall be ~n effect ~s one (1) year following the ending of term of office and shall be binding upon, but not hmited 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 ~s completed riot to convert the rehab~htated un~ts to condom~mum ownership If the owner does convert rehab~htated umts to condom~mum ownership, the entire loan amount shall be due ~mmed~ately 27 The property owner agrees not to d~scnm~nate against prospective tenants on the bas~s 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 w~ll be residing w~th them, or on the bas~s that they are a handmapped ~nd~wduals 28 The property owner agrees to maintain the rehab~htated property up to adopted C~ty of Denton Building Code Standards ~n effect the year ~n which Page 14 the rehab~htat~on was completed Th~s w~ll be apphcable for a period of at least ten years after the project ~s 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, ~nclud~ng execution of all tenant notifications outhned ~n the pohcy Cop~es of all tenant correspondence must be submitted to the Commumty Development Diws~on VII MINIMUM REHABILITATION STANDARDS Roofs Roofs should not leak and have no evidence of reEed 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 retted 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 inch waferboard to be used with H chps between sheets All roofs that are stripped shall be replaced w~th new felt paper, the proper flashing and metal dnp edge with 240 pound shingles Any roof w~th less than a 4/12 pitch shall be covered w~th rolled roofing, w~th at least 12 ~nches of lap, ~f ~nstallat~on of rolled roofing ~s not sufficient to promote proper run off roof w~ll be rebmlt Siding and Trim All extenor s~d~ng and tnm shall be free of holes, cracks or rotted material that m~ght admit moisture into walls New s~d~ng may be apphed only ~f the cost of new siding and ~nstallabon ~s comparable to the repair and painting costs of the ex,sting s~d~ng Windows All windows and hardware shall operate satisfactorily Cracked or broken w~ndows shall be replaced W~ndow glazing shall be weather t~ght and windows shall be weather stripped so as not to allow entry of a~r and water around the glass, sashes or window casings All w~ndows shall have screens and working locks Drainage The grade of concrete or dirt should dra~n at least five feet away from foundation walls Page 15 Site Improvements All replaced concrete surfaces are to be level w;th the w~dths to match the ex~st~ng surfaces All steps both concrete or wood that pose a threat to the occupants shall be repaired or, ~f necessary, replaced w~th treated material or concrete Foundations and Piers Skirting shall be six (6) ~nches underground level If it ~s necessary to ~nstall skirting, new 22 or 24 gauge skirting shall be used Kitchens K~tchens shall have a specific area that contains a s~nk w~th hot and cold runmng water, counter workspace, and space for storage of cooking utensils Stairs All stairs shall provide for the safety of ascent and descent All treads and nsers should show no ewdence of breakage or have evidence of excessive wear All stairs shall be equipped with handrails Utility Areas Gas or o~1 fired water heaters or furnaces shall not be located ~n the bathrooms or bedrooms In addition to all plumbing and electncal codes, water heaters and furnaces shall be enclosed w~th a sealed door and adequate upper and lower combustion a~r All washer and dryer hookups must meet C~ty Code Structural Systero The wood, masonry or steel components shall be ~n serviceable condition for the expected useful life of the rehab~htated building Structural members that are ~n seriously deteriorated condition shall be replaced Sagging and unleveled floors shall be raised and stab~hzed as level as possible w~thout causing interior damage Termite ~nspect~on and treatment shall be done ~f ewdence of active ~nfestat~ons ex~st A cerbfied pest control company w~ll carry out the treatment and present documents of proof Page 16 Electrical System All replacement of ex~st;ng w~nng and equipment shall be done ~n conformance with the National Electric Code and the C~ty of Denton Code Any potential source of electrical hazard or ~gmt~on of combusbble material shall be corrected GFCl outlets shall be used ~n bathrooms, k~tchen, garage, and exterior receptacles Additional outlets shall be added to eliminate extension cords and, at the request of the City Inspector, to meet C~ty Codes Plumbing The plumbing system shall operate free of fouling and clogging, and not have cross-connections which permit contam~nabon 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 properly connected to a public or private 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 exterior of the structure Mechanical Equipment All gas fired heating umts must be vented w~th double wall p~pe and proper upper and lower combustion a~r The umt shall not be ~nstalled m a hwng area such as bedrooms or under stairways R~g~d gas pipe 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 source 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 rrepa~red Insulation and Weatherlzatlon A R-30 insulation value ~n the attic shall be required Exterior Doom All extenor doors shall be sol~d core All locks shall be capable of bghtly secunng the door and shall be readily operable from the ~nslde without the use of keys All exterior doors shall be weather stripped so that there ~s no s~gmficant entry of a~r or water ~nto the structure Porches and Decks Page 17 All porches and decks shall be safe and capable of supporting anticipated loads All porches and decks ~n detenorated cond~bon and which serve no useful purpose or which ars not economically repairable shall be removed Porches and decks 30 ~nches above grade shall have guardra~ls and flights of stairs w~th four or more risers They shall have a handrail on at least one side Gutters and Downepouts Gutters and downspouts should ex~st where they are deemed necessary to promote proper drainage Gutters w~ll not normally be ~nstalled if they do not already ex~st Downspouts that cannot be connected to dra~n t~les shall have splash backs with proper site gred~ng Chimneys and Vents Furnace and water heater vents shall be double wall vent p~pe Existing unhned masonry chimneys having open mortar joints or cracks shall be removed or made safe by installation of a UL approved flue hner Vent-a-hood stacks shall be vented through the roof Interlom All floors, walls, and ceilings shall be maintained in good, clean, and samtary condition All peeling paint, cracked or loose plaster, and other defective surface conditions shall be ehmlnated All doors shall be operabonal Carpet and wnyl that ~s badly worn, torn or too d~rty to be cleaned shall be replaced Th~s shall be determined by the C D Inspector Existing carpet shall be cleaned w~th 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 E~ther a w~ndow or an exhaust fan must be present to properly vent the bathroom Cabinets Built-in kitchen cabinets shall be rapalrad up to 50 percent of the cost of new cabinets Bathroom cabinets are not reequ~red Page18 APPENDIX H RENTAL REHABILITATION PROCEDURES The following list of procedures is designed to insure that property owners understand their responsibilities under the Rental Rehablhtauon Program Please call the Community Development Office at (940) 349-7726 if you have any questaons regarding these procedures 1 Return completed application Include a copy of property deed, tax receipts from all taxing enUtaes, proof of insurance coverage on the property and documentation of all owner(s) income and assets* 2 A set of work specifications must be drawn up by the owner and approved by the Community Development Office 3 The owner of the proposed property will bear the responsibility of contacting at least two general contractors, who will submit bid proposals These proposals must remmn w~thm a margin of ten percent of the estimate determined by the Community Development Office 4 Upon project approval, a title search must be submitted 5 Certification that all tenants have received timely written notice that they will not be displaced by the project mus, t be submitted within two weeks of application submission A copy of the City of Denton s Tenant Assistance Policy must accompany the notice to the tenant 6 Requests for all interim and final payments should include an itemized hst of completed work and its cost and two "Requests for Payment" signed by both the property owner and the contractor IT IS THE CONTRACTOR'S RESPONSIBILITY TO FILE ALL NECESSARY PAPERWORK WITH COMMUNITY DEVELOPMENT 7 A final lnspecUon must be completed by Community Development 8 Final payment is contingent on receipt of the following by Community Development a) signed affidavits from all subcontractors stating that they have received full payment b) affidavit from general contractor and signature on lien assignment c) two executed requests for payment * Documentataon of income sources may include but is not limited to the following · Current year's income tax Return with W-2's for each hou$~h01d member who has filed tax returns. · Most current Social Security income statement if applicable · Paycheck stubs for last four weeks for each emoloyed household member · Names and addresses of all retirement income or any other income sources (ALL INCOME SOURCES MUST BE DISCLOSED--RETIREMENT, RENTAL/HAP INCOME, AFDC, FOOD STAMPS, ETC.) · Divorce decree if you receive child/other support from a divorce or if you were awarded property through a divorce · Name, address, account number(s) of all banks, credit unions, savings banks, IRA accounts, etc for all household members who have any such accounts AAA04604 - 1 - Page 26 APPLICATION FOR THE CITY OF DENTON RENTAL HOUSING REHABILITATION PROGRAM OWNER PROPOSAL FORM ~ COMMUNITY DEVELOPMENT OFFICE 100 W. OAK, SUITE 208 DENTON, TX 76201 TELEPHONE NO (940) 349-7726 ~ PLEASE COMPLETE ALL SECTIONS OF THIS OWNER PROPOSAL FORM IF YOU NEED ASSISTANCE IN COMPLETING THE FORM, CONTACT THE AGENCY LISTED ABOVE A LIST THE NAME(S), ADDRESS(ES), AND TELEPHONE NUMBER(S) OF ALL OWNERS OF THEPROPOSED PROPERTY B TYPE OF OWNERSHIP (check one) [] (a) Sole Owner [] Co) Partnership [] (c) Corporatmn [] (d) L~m~ted Partnership [] (e) Other C PROPERTY ADDRESS No Street City D BUILDING DESCRIPTION [] Single Family [] Duplex [] Tn-Plex [] Four-Plex E BUILDING STRUCTURE [] Frame [] Brick [] Masonry [] Other F FOR EACH UNIT IN THE PROJECT PLEASE PROVIDE THE INFORMATION REQUESTED ON THE FOLLOWING PAGE AAA04604 - 2 - Page 27 The following ~nformaUon must be prowded on all ex~stmg tenants Apphcauons will not be processed until all tenant ]nformatton ~s received TENANT'S CURRENT APT NO OC- OVER ETHNIC *FEM HANDI SEC 8 INCOME NAME RENT NO CUPANTS 65 CODE HHH CAPPED Ethmc Code I - White 2 - Black 3 - Amer Indmn/Alaskan NaUve 4 - As~an Pacffic Islander 5 - Htspamc 6 - Other Sect]on 8 C - Certfficate V - Voucher N - None * Please note a female head-of-household ~s a female w~th dependent children NOTE PROVIDE INFORlVIATION FOR ALL UNITS A UNIt NUMBER B NUMBER OF BEDROOMS, EXISTING C NUMBER OF BEDROOMS, AFTER REHABILITATION D CURR~NT RBNT E PROIECTED R~NT AFTER REHABILITATION F UNIT OCCUPIItD (O) OR VACANT AAA04604 - 3 - Page 28 A ORIGINAL MORTGAGE Ong A.mount Mortgagee Balance B OTHER LIENS Amounts Lien Holder To~l Due C ORIGINAL PURCHASE PRICE $ D DATE OF PURCHASE E ESTIMATED MARKET VALUE OF PROPERTY (Attach recent appraisal) $. F DOLLAR AMOUNT OF RECENT CAPITAL IMPROVEMENTS $ DESCRIBE IMPROVEMENTS BELOW AMOUNT OF INSURANCE COVERAGE $ NAME OF INSURANCE COMPANY (Attach copy of policy) AMOUNT OF RENTAL REHABILITATION FUNDS REQUESTED FROM CITY $. FINANCING OF OTHER REHABILITATION COSTS NOT COVERED BY THE RENTAL REHABILITATION PROGRAM 1 AMOUNT OF ESTIMATED OWNER COSTS FOR REHABILITATION TO BE PAID FROM OWNER'S FUNDS (EQUITY) 2 AMOUNT TO BE BORROWED FROM PRIVATE LENDING INSTITUTION $. NAME OF LENDING INSTITUTION -- 3 ANTICIPATED INTEREST RATE AND LOAN PERIOD % for , years AAA04604 - 4 - Page 29 Note: Income eligibility is based on household income which includes the ~ncome of all working members of the household. If the property is owned by a partnersinp or corporation, aH partners and/or principals must be income eligible. Please hst all income amounts below and provide doeumentatmn of each ~ncome source (To be completed by all households w~th ownership m the property.) Household Household Income Type Owner Member #1 Member #2 Total Salary Overume pay Fees/Ups Commissions/bonuses Interest and/or dtwdends Net income from business Net rental income Social Security, pensions retirement Unemployment benefits, workers compensation, ere Alimony, child support Welfare pymts, AFDC, food stamps, ere ASsets Checkmg accounts Sawngs/CD accounts i Stocks, bond, etc. Rental property income Value of private restdence Life Insurance Other ~04604 - 5 - Page 30 THE OWNER/CO-OWNER CERTIFIES (1) THAT HE/SHE HAS READ THE RENTAL REHABILITATION PROGRAM GUIDELINES AND UNDERSTANDS THE PROCEDURES AND REGULATIONS DESCRIBED THEREIN, (2) THAT HE/SHE AGREES TO ABIDE BY THOSE PROCEDURES, REGULATIONS, AND CONDITIONS, AND (3) THAT THE INFORMATION CONTAINED IN THIS APPLICATION AND PROPOSAL IS TRUE, CORRECT, AND COMPLETE THE APPLICANT AGREE&NOT TO DISCRIMINATE UPON THE BASIS OF RACE, AGE, GENDER, DISABILITY, FAMILY STATUS, CREED OR NATIONAL ORIGIN IN THE SALE, LEASE, RENTAL, USE, OR OCCUPANCY OF THE REAL PROPERTY REHABILITATED WITH ASSISTANCE FROM THE RENTAL REHABILITATION PROGRAM VERIFICATION OF ANY OF THE INFORMATION CONTAINED IN THIS APPLICATION MAY BE OBTAINED FROM ANY SOURCE NAMED HEREIN THE APPLICANT CERTIFIES THAT HE/SHE HAS NOT REQUIRED ANY TENANT TO MOVE WITHOUT CAUSE, SUCH AS VIOLATION OF THE LEASE OR LOCAL LAW DURING THE 12 MONTHS PREVIOUS TO THE DATE OF THIS APPLICATION Owner's Signature Social Secunty Number Date Co-Owner's S~gnature Socml Security Number Date ATTACHMENTS INCLUDE WITH THIS APPLICATION 1 A COPY OF THE DEED 2 PICTURE(S) OF THE BUILDING AND, IF AVAILABLE, PICTURES OF THE INSIDE OF THE UNIT(S) 3 PROOF THAT PROPERTY TAXES AND ALL UTILITIES ARE PAID IN FULL INCLUDE A RECENT TAX STATEMENT SHOWING PROPERTY VALUE 4 DOCUMENTATION OF OPERATING EXPENSES, TAXES AND INSURANCE _ 5 SIGNED LETTER FROM ALL EXISTING TENANTS STATING THEY HAVE RECEIVED A COPY OF THE TENANT ASSISTANCE POLICY AND UNDERSTAND THEIR RIGHTS ACCORDING TO THE POLICY A COPY OF THE POLICY AND A SAMPLE LETTER ARE ATTACHED 6 INCOME DOCUMENTATION AAA04604 - 6 - Page 31 APPENDIX III 'TON, TX :al Rehabilitation lrget Area Page 32