Loading...
1997-305A \OPTRECON 0 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, APPROVING GUIDELINES FOR OPERATION OF THE CITY OF DENTON OPTIONAL RECONSTRUCTION PROGRAM AND ELIGIBILITY CRITERIA, AUTHORIZING EXPEN- DITURES IN EXCESS OF $15,000 FOR PROJECTS MEETING PROGRAM GUIDE- LINES,AND CRITERIA, AND PROVIDING FOR AN EFFECTIVE DATE WHEREAS, the City Council of the City of Denton recognizes the need to assist low and moderate income families in securing safe, sanitary and decent housing, and WHEREAS, the City of Denton participates ~n a Housing Rehabili- tation Program administered by the City of Denton Community Devel- opment Office and funded through a federal grant from the Depart- ment of Housing and Urban Development, NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION I That the City Council approves the Optional ReconStruction Program Guidelines and Optional Reconstruction Program Eligibility Criteria whlch is attached to and made a part of this ordinance for all purposes as Exhibit "A" and authorizes the C~ty of Denton Community Development Office to administer this program S~CTION II That it authorizes the expenditure of funds in excess of $15,000 by the Community Development Office for pro3ects meeting program guidelines and criteria, sub3ect to compliance with competitive bidding laws where applicable ~ III That this ordinance shall become effective ~mmed- lately upon its passage ~/~d ~~F~ PASSED AI~D APPROVED thls the ay of _ , 1997 JACK MILLER, MAYOR CITY OF DENTON OPTIONAL RECONSTRUCTION PROGRAM GUIDELINES- 1997/98 TABLE OF CONTENTS I P~RPOSE Page 1 II DESIGNATED AUTHORITY Page 1 III IMPLEMENTATION PROCESS Page 2 IV ELIGIBILITY REQUIREMENTS Page 3 v FEASIBILITY FOR RECONSTRUCTION Page 5 VI SELECTION OF RECIPIENTS FOR ASSISTA};CE Page 5 VII ALLOWABLE EXPENSES AND CATEGORIES OF FINANCIAL ASSISTANCE Page 5 VIII REHOUSING AGREEMENT Page 7 IX FINAL INSPECTION - CERTIFICATE OF OCCUPANCY Page 7 APPENDIX I PROGP3%M INCOME RANGE TABLE Page 8 APPENDIX II APPLICATION AND TEMPOP~Y RELOCATION QUESTIONNAIRE Page 9 APPENDIX III REHOUSING AGREEMENT FOR Applicants Page 10 APPENDIX IV TD. RGET REHABILITATION NEIGHBORHOODS MAP Page 12 CITY OF DENTON OPTIONAL RECONSTRUCTION PROGRAM GUIDELINES Unless ~erein stated otherwise, the general operating procedures contained in the City og Dsnton's Community Development Homeowner Rehabilitation Progro~ Guideli~es will be followed A The City of Denton, Texas, will provide assistance necessary to accomplish the reconstruction of dwellings not feasible for rehab~l~ta- tlon The Optional Reconstruction Program will provide funds to demolish ex~st~ng dzlapldated dwellings and reconstruct adequate, decent, safe and sanitary replacement dwellings In addition, the City will also promote the eliminatlon of slum and blight that exists in the City B Reconstruction payments and assistance w~ll be carried out under the City of Denton's Community Development Program as an eligible expense from project funds Assistance shall be subject to the ava~labll~ty of grant funds and U S Department of Housing and Urban Development (HUD) implementing regulations Adm~nistratlve procedures will be modified to meet any change ~n rules and regulations of HUD which may occur over t~me II DESIGNATED AUTHORITY A Administrative authority for implementation of the program w~ll rest w~th the City of Denton's Community Development Off,ce This office will serve as the approving office for Rehousing Agreements and for contractual and budget changes as needed for prelect completzon B The Community Development Administrator w~ll have the respons~b~llty for final determination of the amount of reconstruction assistance to be made available to Individual applicants in accordance with the Implementing procedures C The Community Development Adm~nlstrator will be responsible for approval of applicant ellglbility for the program and final approval of selection of applicants to be assisted Th~s w~ll be based upon relative need of applicants on the City's l~st of houses which have been determined ~nfeas~ble for rehab~lltat~on under the C~ty's Homeowner Rehabilitation Program Revised 8/20/97 Program Guidelines - Page i III IMPLEMENTATION PROCESS Steps in zmplementlng the program will be as follows A Community Development Office maintains list of applicants for Homeowner Rehabilitation Program assistance where a determination has been made that the structure is not feasible to rehabilitate to minimum standards under the City's Homeowner Rehabilitation Program B Applicant is notified that the rehabilitation of the structure has been determined to be infeasible Eligibility requirements for the Optional Reconstruction Program must be met for applicants to be placed on the Optional Reconstruction Program wa~tlng l~st C Staff evaluates applications for reconstruction assistance as specified in Section VI Staff processes applications as possible under funding and staff limitations D Applicant is informed of available assistance E Applicant submits a Replacement Housing Assistance Request, acknowledg- ing receipt of information explaining the City's program, and request- ing reconstruction assistance to enable applicant to obtain suitable and adequate housing F Community Development Staff determine whether or not approval of applicant's Replacement Housing Assistance Request reasonably may be expected to result in the successful and feasible rehousing of the applicant In cases where the applicant's general health or income level would preclude his or her adequate and responsible operation of a replacement dwelling, and/or cases in which the costs of the replacement dwelling would be substantially above the costs of typical cases, and to the extent that the probability of the City reaching its Community Development Program goals would be endangered due to cost overruns, the applicant's request may be denied The applicant will be notified in writing of the determination and, if the request is not approved, the reasons for denial When the determination is approval of the applicant's request, a Notice of Approval will be sent informing the applicant that the City is authorized to enter into a Rehousing Agreement with the applicant for a specified Replacement Housing Payment determined appropriate by the city pursuant to 1ts Reconstruc- tion Policy Prior to any agreement being executed between the applicant and the City, the Community Development Office will comply with the public disclosure and notification/authorization to and from HUD requirements according to 24CFR Part 70, Sectlon 104(d), Recon- struction and One-for-One Replacement Housing Requirements G A RehouslngAgreement is executed between the applicant and the City, under the terms of which the applicant agrees to move permanently and voluntarily from the dwelling on or before a specified date Revised 8/20/97 Program Guidelines - Page 2 Com~unlty Development Staff will provide counseling and assistance as needed to approved applicants zn order to facilitate the applicant's rehouszng, including referrals to builders, suppliers, etc I The applicant and the Community Development off~ce agree to the arrangement and method of the approved payments, the applicant will execute a contract with a bullder for the selected replacement dwelling The applicant w~ll also contract for the demol~tlon of the substandard dwelling and for lot and s~te clearance and preparation J When appropriate, the applicant voluntarily vacates the substandard dwelling K The replacement dwelling is constructed and appropriately inspected by the City to determine adequacy and compliance with C~ty codes L City certifies that the replacement dwelling ~s decent, safe, and sanitary and ready for occupancy city ~ssues a f~nal building ~nspectlon M Applicant accepts replacement home N All remaining approved payments are made to applicant at a formal closing ceremony, and applicant acknowledges receipt of payment schedule O, Upon completion of all actions in regards to reconstruction, applicant acknowledges zn writing that all payments, assistance, and conditions of the Rehousing Agreement have been received to the applicant's satisfaction P Applicant occupies replacement structure IV ELIGIBILITY REOUIR~MENTB Eligibility for reconstruction payments and assistance shall be estab- lished as follows A, Applicant must have applied for rehabilitation assistance under the City of Denton's Housing Rehabilitation Program B Applicant must have been rejected for rehabilitation assistance on the grounds that the applicant's occupied dwelling was not feasible to rehabmlltate C, Applicant must be an owner occupant of the dwelling for which rehabll~- tatlon assistance is requested and reside within a Target Rehabilitation Neighborhood (see Appendix 4) The dwelling must be the applicant's principal residence for a minimum of 8 years prior to the submission of a completed application for assistance Revmsed 8/20/97 Program Gumdellnes - Page 3 Applicant must present proof of ownership by General or Special Warranty deed City staff will verify proof of ownership with title searches as necessary on the property where the dilapidated structure exists and/or the site where the replacement housing w~ll be built In situations where the applicant does not have clear t~tle, attempts to clear the title wzll be ~nlt~ated w~th the assistance of the applicant When meeting th~s guideline requirement is not feasible, applicant must present proof of ownership (General or Special Warranty Deed) showing fee simple title of 50% or more ownership in the applicant's name (All other t~tle holders will be requested to relinquish their title rights to the applicant ) Applicants with less than 100 percent fee s~mple t~tle must have a continuing r~ght to occupy the premises Applicant must provide documentation for all ex~st~ng l~ens All current lienholders w~ll be requested to subordi- nate their l~en position to the C~ty Mortgage note balance cannot exceed 50 percent of the property's appraised value as set by the Denton Central Appraisal Dlstrzct The City w~ll relinquish f~rst l~en position only to a mortgage lender In all other cases, llenholders w~ll need to relinquish f~rst lien pos~t~on to the C~ty Applicants shall provzde complete and accurate ~nformatlon regarding their household composition, household ~ncome, and housing s~tuat~on Failure to disclose information which may affect ellg~b~l~ty require- ments shall also constitute fraud Applicants shall be required to make full restitution to the City in the event Community Development services are provided to applicants who provided inaccurate or incomplete lnformat~on in order to meet eligibility requirements Requests for further assistance w~ll be den~ed unless restitution ~s made in full Applicants must demonstrate that their ~ncome exceede their projected housing expenses Applicants will agree to conform with Denton Code Enforcement requests prior to being determlned eligible for replacement housing assistance Applicants agree to maintain dwelling and exterior grounds ~n accor- dance wlth applicable city ordinances Applicants wzll be encouraged based on lnd~v~dual needs to attend Community Development applicant educatlon classes, w~th emphasis being placed on maintenance, budgeting, cost effective decorating, and responslb~l~t~es of home ownership when available Must apply to a participating lender and be eligible for a loan to cover part of the cost of the reconstruction Revised 8/20/97 Program Guidelines - Page 4 V FEASIBILITY FOR RECONSTRUCTION Feasibility for reconstruction is based on determining all related costs to complete a reconstruction project Total project costs cannot exceed the maximum amount allowed as set by the current Section 221(d)(3) Lowest Home Per-Unit Subsidy Limits for the State of Texas as set by the Department of Housing and Urban Development (HUD) Project costs 1nclude, but are not limited to, the cost of demolition, s~te preparation, cost of replacement dwelling, t~tle search fee, and/or Clty-funded interest buy- down for bank financed portion of the pro3ect VI SELECTION O0 RECIPIENTS FOR ASSIETANCE A Initlal recipients of this program will be taken from the list of applicants residing in structures determined to be lnfeas~ble to rehabzlztate Additional rec~plents w~ll be added during subsequent operation of the City of Denton's Housing Rehabllltat~on Program B The number of rec~plents to receive assistance w~ll be sub]ect to availability of funds C Applicants w~ll be placed on a wa~tlng list for reconstruction assistance based on the t~me and date they orlg~nally applied to the Community Development Office for rehabilitation assistance VII A%LOW~BL~ EXPENSES AND ~ATE~ORIES OF FINANCIAL ASSISTANCE A The primary form of asszstance to be provided wlll be the use of Federal HOME grant funds to pay for the cost of the replacement dwelling and costs related to replacing a substandard unit B NO reconstruction w~ll net fewer bedrooms than the number of bedrooms a family has before reconstructzon Room add~tlon(s) to relieve serzous overcrowdzng may be eligible only with the approval of the Communlty Development Admzn~strator In general the C~ty will follow the standards consistent w~th the appllcable Housing Quality Standards described at 24CFR 882 209(b) (2) when considering the number of bedrooms needed to avoid overcrowding S oX 0ecunants in Household ~ Minimum Maximum 2 i 4 3 3 6 4 6 8 C The C~ty of Denton has FOUR FINANCIAL ASSISTANCE CATEGORIES for those who qualzfy for the Optlonal Reconstruction Program These categories are based on the Oualifvin~ Income Limits and Ranges ~or the City of Revised 8/20/97 Program Guidelines - Page 5 Denton~s Federally Assisted Proarams (see appendix I to these ~uide- lines for current income limit ranges) A description of the financial assistance categories and their requirements are found ~n Section III of the Homeowner Rehabilitation Guidelines Allowable expenses w~ll include I Cost of total demolltLon and clearance of the dilapidated structure, lot clearance, and preparation of ]ob sate for new replacement dwelling 2 Cost to reconstruct safe, sanitary, decent replacement dwelling 3 Other expenses the Community Development Office determines to be necessary to facilitate the reconstruction of the substandard property Community Development staff w~ll also provide assistance and counseling to applicants as needed, including the following i Information on the program and rehousing options available 2 Assistance an soliciting bids for replacement housing 3 Assistance an contractual compliance between applicant and contractor 4 Asszstance an ~nspect~on of construction of replacement dwelling, if applicable 5 Assistance to applicant an evaluation of future maintenance burdens of various housing options If, after the loan payback begins, a household experiences a permanent, substantial loss of household income, a applicant can request a review to adjust their current level of assistance However, ~n no ~nstance will the payable loan portion be reduced below the m~nlmum 10 percent payable loan level The loss of income must be from an income-earning aDDlieantfs) whose income wac used in determining the originel loan asstst~ee ~etegory Loss of employment (voluntarily or lnvoluntar~ly) is not considered a "permanent loss" For purposes of this program "permanent loss" Ks defined as i death 2 mandatory retirement (must be 62 years of age or older) 3 permanent disability To determine if a reduction an the loan Ks eligible, the household members will be asked to complete all income ~nformatlon and forms as required in Section II - Application Processing A determination will ReVlsed18/20/97 Program Guidelines - Page 6 be made after evaluating the household size and income usmng the program gumdeline income lmmmts and fmnancmal assistance categormes that are being used at the tmme the request for reduced loan payment ms made If the loss of Income places the household in a lower payback category, the loan balance wmll be reduced (whmch will mncrease the deferred payment loan balance) according to current financmal aesms- tance category gumdelines When a loan reduction ms granted, the applmcant must sign an Extension of Note and Lien reflectmng the new loan and deferred loan amounts A waiver of these provmslons can be requested mf the applicant feels that their cmrcumstances requmre special consmderat~on Section V of Program Procedures explamns how to request a waiver Each applicant assisted through the program will sign a Rehousmng Agreement with the Cmty which outlines the responsmbilmt~es of each The agreement establmshes a date on which the applicant agrees to permanently vacate the present structure, agrees to demolition of the present dmlapidated structure, agrees to occupy the replacement structure when structure is completed and ready to be inhabmted, and agrees that temporary housmng wmll terminate when structure is ready for occupancy as determined by the Cmty of Denton IX FINAL INSPECTION - CERTIFICATE O~ OCCUPANCY The City of Denton will conduct a f~nal inspection of all housmng un.ts made available through the program to determine that the replacement unit and all items mdent~fled mn a "punch list" have been corrected Thms Certifmcate of Occupancy will serve as evidence to HUD of the Cmty's determmnatmon that the dmlapmdated structure has been replaced by a decent, safe, and sanmtary dwellmng and that the family has been successfully relocated Revised 8/20/97 Program Gumdelines - Page 7 APPENDIX 2 OPTIONAL RECONSTRUCTION PROGRAM APPLICATION YourpartlcipatlonlntheOptlonalReconstructionPmgrammvoluntapJ Reconstructlon funds are limited Therefom, the Program does not cover coats necaasary for household to relocate during raconstruchon of property Please complete the following questionnaire This ~nformatton wrll help our staff In determimng ~f you will be eligible for the Optional Reconstrucbon Program I understand that It is my responsibility to relocate my household and that I am responsible for all costs involved to do so? Yes No 2 I understand that as a result of reconstruction, my appramed property value may ~ncraase significantly from the amount at which it is currently valued? Yes No 3 I understand that an ~ncrease in my property value may cause my property taxes to increase by a a~gmficant amount lam financially prepared to meet any increase? Yes No 4 I understand that I am obligated to carry homeowner's msuranca for the durabon of the I~en (10 years) that the C~ty of Denton will have on my property Yes No 5 I understand that my homeowner inauranca premium will most hkely Increase as a result of the reconstruchon I am awara that my Inauranca policy must cover the after-reconstruction appramed value of my property I am financially prepared to meet this ~ncrease Yes No 6 I understand that I must request that my insurance company hst the City of Denton as a "Mortgagee" on my policy for the duration of the hen (IO years)? Yes No 7 I understand that The City of Denton Is limited ~n the amount of funds they can spend to roconstruct a property I have been briefed on these limits and understand that my ehglblhty for the Optional Reconstruction Program will be granted only if it is determined that the total of all costs involved to reconstruct my property will be at or below the allowable program limit Yes No Th~s APPLICATION was completed by on By s~gmng below, I am requesting that the C~ty of Denton's Commumty Development Office accept this as my apphcabon to be considered for the Opbonal Reconstruction Program Applicant's S~gnature Date Revised 8/20/97 Program Guldel;~nes - Page 9 APPENDIX 3 CITY OF DENTON COMMtYNITY DEVELOPMENT PROGRAM OPTIONAL RECONSTRUCTION PROGRAM REHOUSING AGREEMENT FOR APPLICANTS THIS AGREEMENT, made and entered into on I1}, by and between the City of Denton, Texas, and ~1~ hereinafter referred to as Applicants This agreement covers the structure occupied at the following legal address WHEREAS, The Applicant has heretofore requested and qualified for the Homeowner Rehabilitation Program w~th assistance from the Clty in order to obtam adequate, decent, safe, and samtary housmg under the C~ty's Commumty Development Block Grant and HOME Program, and WHEREAS, the C~ty has detenmned that rehabtlltatlon of the Apphcant's residence ~s not a feasible alternative, and WHEREAS, the City has determined that the Commumty Development Program will not provide the Apphcant relocation payments and assistance necessary to accomplish the voluntary relocation of the Apphcant from the substandard, unrehabable dwelling currently occupied ~nto an adequate, safe, and samtary replacement dwelling NOW, THEREFORE, the C~ty and the Applicant for and an consideration of the covenants and prormses as hereinafter set forth, do agree as follows 1 The Applicant agrees to vacate permanently the currently occupied substandard dwelling w~thm 10 days notxce by the City for the need to vacate 2 The Applicant agrees and hereby authorizes the demolition and removal of the currently occupied dwelhng and clearance by the City of the property The Apphcant further releases the C~ty from any and all clauus arising from flus action 3 The Apphcant agrees to take possession and occupy the replacement dwellmg when such dwelling is completed and the City determines it to be ready for occupancy The Applicant further agrees to s~gn any required ~nstruments to effect th~s ~tem Revxsed 8/20/97 Program Guldelxnes - Page 10 4 The Apphcant agrees, to prowde and bear all financial costs necessary to relocate Apphcant's household and furmsbangs w~thout assistance from the C~ty of Denton 5 The maxamum budget authority for the OpHonal Reconstructaon Program is ~6~, Much includes, but as not lnmted to, property t~tle search fee, the cost to demohsh the ex~stmg dilapidated structure and the cost to reconstruct an adequate, decent, safe, and samtary replacement dwelhng on the onganal s~te (lot) of the dwelhng vacated by the apphcant 6 Apphcant agrees to the tune 1Lmltat~ons as set forth m the OpHonal Reconstruction Guadehnes m whach to be moved from the substandard property 12[ DATE 13[ DATE CITY OF DENTON: BARBARA ROSS, COMMUNITY DEVELOPMENT ADMINISTRATOR NANCY BAKER, HOUSING REHABILITATION SPECIALIST Revxsed 8/20/97 Pro,ram Guidelines - Pa~e 11 APPENDIX 4 _'DENTON, TX , ~.~.~.~ T, xget Rehabdltatllon N~ig~rhoods Map ~j~ ! .... ~" i~ ~ ~~ ,,,,.. ~ / · I ""~ I. -- .... : , ~~~:-'-~ Revssed 8/20/97 Program Guidelsnes - Page 12 MERGE FIELD DOCUMENT EXPLANATION FIELD 11 = DATE DOCUMENT WILL BE SIGNED FIELD ! = NAME(S) OF Apphcant SIGNING DOCUMENT FIELD 4 = LEGAL PROPERTY DESCRIPTION OF DWELLING TO BE RECONSTRUCTED FIELD 6 = MAXIMUM ALLOWABLE FUNDS FOR PROJECT I E, 1 BDRM = $41,054, 2 BDRM = $49,921, 3 BDRM = $64,581, AND 4 BDRM = $70,890 (THESE DOLLAR AMOUNTS ARE SET BY HUD FOR THE DENTON AREA AND WILL BE CHANGED TO REFLECT HUD'S RE- QUIREMENTS FOR DENTON AS DIRECTED ) FIELD 12 = FIRST NAME OF Apphcant FIELD 13 = SECOND NAME OF Apphcam (IF APPLICABLE) Revxsed 8/20/97 Pro,ram Guxdelxnes - Page 13