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