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1997-307 ORDINANCE NO AN ORDINANCE OF T}{E CITY COUNCIL OF TME CITY OF DENTON, TEXAS, APPROVING THE GUIDELINES FOR THE RENTAL REHABILITATION PROGRAM AND ELIGIB'ILITY CRITERIA, AUTHORIZING EXPENDITURES IN EXCESS OF $15,000 FOR PROJECTS MEETING PROGRAM GUIDELINES AND CRITERIA, AND PROVIDING FOR AN EFFECTIVE DATE WHEREAS, the City Council of the City of Denton recognizes the need to assist low and moderate income families in securing safe, sanitary and decent housing, and WHEREAS, the City of Denton has developed a program to rehabilitate tenant occupied housing units by making needed repairs through its Rental Rehabilitation Program, which is administered by the City of Denton Community Development Office and funded through a federal grant, NOW, TMEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION I That the City Council approves the Rental Rehabilitation Program Guidelines and el~glbzllty criteria attached to and made a part of this ordinance for all purposes, and authorizes the City of Denton Community Development to administer this program SECTION II That the City Council authorizes the expenditure of funds in excess of $15,000 by the Community Development Office for projects meetlng program guidelines and criteria, subject to complzance with competitive blddlng laws where applicable ~ III That this ordinance shall become effective immediately upon its passage ~/~d PASSED AND APPROVED th~s the ay of , 1997 JACK MILLER, ~YOR ATTEST JE~IFER WALTERS, CItY SECRETLY MER~RT L PROUTY, CITY ATTORNEY CITY OF DENTON RENTAL REHABILITATION PROGRAM GUIDELINES TABLE OF CONTENTS Introduction Descnpt~on of Program Procedures I Ehg~b~hty Requirements II Apphcat~on Processing III Contractor Select~on, Monltonng and Debarment IV Payment to Contractor V F~nanc~al Subsidy Mechamsm VI Deferred Payment Loan w~th a 10% Per Year Forgiveness VII Appeals Procedure VIII Program Gu~dehnes 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 ~s designed to assist Iow and moderate ~ncome fam~hes ~n secunng safe, samtary and decent housing Th~s program's object~vel~s to rehab~htate ranter occupied housing umts by making needed repairs w~th the first pnorlty as correcbng code wolatlons The Rental Rehablhtatmn Program ~s adm~mstered by the C~ty of Denton's Commumty Development Office and funded through a federal grant The Commumty Development Office ~s located at 100 W Oak Street, Suite 208 The following pages contain a detailed descnpbon of the program ~nclud~ng pohc~es and procedures The purpose of these gu~dehnes ~s to explain to potential chents and the c~t~zens of Denton, the Rental Housing Rehablhtat~on Program and types of assistance available, For further ~nformat~on or clarification ofthe gu~dehnes, contact the Commumty Development Office at 383-7726 DESCRIPTION OF PROGRAM PROCEDURES ELIGIBILITY REQUIREMENTS To be ehg~ble for rehab~htatlon assistance, the apphcant must be a citizen of the Umted States or a legal resident ahen Also, the applicant's pnmary residence must be w~th~n the C~ty of Denton The applicant must be the owner of a rental umt w~th~n a targeted neighborhood and should hold fee s~mple t~tle to the property The ~ncome of apphcants cannot be more than 150% of the median ~ncome for the Dallas metropohtan are Below ~s a table that ~nd~cates the maximum ~ncome level based on family s~ze Household S~ze Maximum Owner Income 1 $ 54,900 2 $ 62,700 3 $ 70,650 4 $ 78,450 5 $ 84,750 The current tenants of the umt to be rehab~htated must be Iow or moderate income Low/Moderate income ~s defined as below 80% of the current Dallas area median ~ncome hm~ts adjusted for family size The following table shall be used to establish a tenant's ehglblhty based on gross family income and family size Household Size Maximum Tenant Income 1 $ 29,300 2 $ 33,450 3 $ 37,650 4 $ 41,850 5 $ 45,200 6 $ 48,550 7 $ 51,900 8 $55,250 Page 5 The tenant's statement of Income shall be venfied by contacbng the tenant's ,employer and/or obtaining a copy of the tenant's latest ~ncome tax return Annual ~ncome includes earmngs (wages, pensions, etc ) spouses earmngs, ~nterest from stocks, bonds, ~ncome from real estate, pubhc assistance, etc Also included ~s any amount regularly contributed by any other adult member of the Ifam~ly Apphcants must also exhibit the ab~hty to pay monthly property expenses ~nclud~ng mortgage payments, taxes, ~nsurance, ubhty b~lls, etc All property taxes assessed by the various taxing agencies ~n Denton County must be pa~d ~n full II ,APPLICATION PROCESSING ~Any property owners w~sh~ng to apply for Rental Rehab~htabon assistance must complete the apphcabon and all other required forms ~ncluded ~n the proposal packet All Information on the completed apphcabons w~ll be verified by the Commumty Development staff If any ~nformabon ~s found to have been ~ntenbonally falsified, the apphcat~on w~ll be rejected and the apphcant w~ll not be i allowed to reapply If the apphcant ~s determined to be ehg~ble for the program, a prehm~nary ~nspect~on 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 umt(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 umt(s) must be ~n an ex~sbng condition that would permit rehab~htabon 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 Page 6 Pro!ect Selection Project selection will be based upon an analysis of the following factors Location of umt Number of bedrooms Owner's ability to obtain private financing Number and extent of major health and safety wolations to be corrected Tenant displacement (preference given to no displacement) Economic feasibility Amount of subsidy required Owner's Equity ~n property Potenbal ~mpact on neighborhood Track record of landlord ~n Iow ~ncome tenant placement Management and maintenance capab~ht~es Quahty of rehab~htat~on plan Accessiblhty or adaptab~hty of umt for handicapped tenants Commitment by landlord to and/or hkehhood of Iow income tenant placement III CONTRACTOR SELECTION. MONITORING AND DEBARMENT Contractors participating ~n the Rental Rehab~htaflon 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 spec~ficabons 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 ~nformabon sheet, performance manual, general specifications for workmanship, all insurance 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 Office for rewew Acceptable b~d proposals must fall w~thm a ten percent (10%) margin of the cost estimate developed by the commumty 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 w~ll not be ehg~ble to participate m th~s program Once the contractor has been selected and approved, a contract agreement must be signed Before the contractor can start work, the property owner must ~ssue a not~ce to proceed Page 7 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 ~ncomplete, the property owner should adwse the contractor of the ,d~screpancy and ask that ~t be corrected 1 FInal Inspection - In order for the contractor to close out a rehab~htat~on job, a final ~nspect~on shall be made by the C~ty of Denton braiding code ~nspector, the Commumty Development Inspector, and the property owner If the final ~nspect~on rasults ~n no additional work or no specified corrections, the property owner shall s~gn the contractor's release form which states that all work has been completed to their (property owner's) satisfaction The braiding code ~nspector shall s~gn a final ~nspecbon form to confirm the same At th~s t~me, the contractor ~s required to submit to the property owner copies of all warrant~es and releases of I~ens from subcontractors and suppliers The Community 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 prowded to the Community Development Office 2 Warranty of Work - As stated ~n the rehabilitation contract, the contractor shall guarantee the work performed for a per~od of at least one year from the date of final acceptance The owner ~s responsible for penod~c rewew of the work , Contractor Debarment A contractor w~ll be declared ~nel~g~ble to participate ~n projects funded by the C~ty of Denton's Housing Rehab~htabon 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~th~n a reasonable bme period 3 Failure to use hcensed plumbIng and electncal subcontractors 4 Failure to obtain proper ~nsurance, ~e, both hablhty and worker's compensabon 5 Failure to complete work ~n accordance w~th program spec~ficabons and/or accepted standards of workmanship Page 8 6 Failure to pay all subcontractors working on the project appropriately and/or submit affidawts of payment s~gned by all subcontractors 7 Failure to obtain proper permits for work in progress Contractors w~ll be nobfied of their proposed debarment and w~ll be afforded the opportumty to comment or appeal the action All appeals must be made m wntmng to the Commumty Development Office at least 15 days after the date of the notification letter IV PAYMENT TO CONTRACTOR The contractor shall receive payment for all completed contracts w~th~n 15 work~ng days after final ~nspect~on and approval of all work Ten percent (10%) of the total contract amount w~ll be w~thheld for 30 days At the end of th~s bme, the property owner must approve release of contingency funds An "All B~IIs Pa~d" affidavit or release of hen from all subcontractors and supphers must be submitted before payment Rental rehab~htatlon parbal payment mlmmum are as follows projects over 50,000 at least 10% per draw, projects under 50,000 50% and final payment V FINANCIAL ASSISTANCE OPTIONS Owners of rental umts are prowded w~th two assistance options 1) Owners w~ll be prowded w~th up to 25% of the amount necessary to rehab~htate the property Funds w~ll be prowded as a 10-year deferred loan At the end of the 10-year period, if all program gu~dehnes have been met, the loan w~ll be forgiven 2) Owners w~ll be prowded w~th up to 50% of the amount necessary to rehab~htate the property The first 25% w~ll be a deferred loan as described above Any amount over 25% of the cost of the rehab~htat~on w~ll be a loan w~th a 2% ~nterest rate There w~ll be a 10-year loan term Optmn 1 will prowde no more than the following dollar amounts three or four bedroom-S6,000, two bedroom-S5,000 Opbon 2 w~ll allow owners to double that mlmmum though they must pay back anything over 25% of the total rehab~htat~on cost Owners are reqmred to s~gn a contract and a hen w~ll be placed on the property for the 10-year period Owners are required to maintain the property and affirmatively market the property to Iow and moderate ~ncome houeeholde * All project funding contnbuted by the owner will be placed ~n an escrow account w~th the City of Denton prior to contract execubon Page 9 The owner must also comply w~th the terms of the note and mortgage that ~nclude the following No conversion to condom~mums or any type of cooperative ownership for the 10 year duration of the I~en 2 No d~scrlm~nat~on against tenants rece~wng Federal, State or local rental assistance for the 10 year duration of the hen 3 The project must be maintained according to adopted C~ty of Denton building codes ~n effect dunng the year ~nwh~ch the rehab~htat~on took place 4 The owner must affirmatively market vacant un~ts for the ten year duration of the lien 5 The umt w~ll be made available and leased to persons whose ~ncome ~s less than 80% of the area median income If the owner wolates any of these rastncbons, the enbre amount of the loan less 10% for each full year after complebon of the rehab~lltabon of the umts until the t~me of default, will be due and payable ~n full ~mmed~ately after the owner ~s notified that the loan must be rapa~d VI PROGRAM GUIDELINES 1 Property owner agrees to comply w~th all HUD requirements to not dtscr~m~nate upon the bas~s of race, ethmc~ty, rehg~on, gender, d~sab~hty status or family status ~n the sale, lease, rental, or use of occupancy of the subject property 2 Properly owner agrees to not award any contract for rehab~htat~on work to be pa~d for In whole or ~n part w~th the proceeds of the grant, to any contractor who, at the time, is ~nel~g~ble under the provisions of any apphcable regulations ~ssued by the Secretary of Labor, Umted States Department of Labor, or the Department of Housing and Urban Development to receive an award of such contract 3 The tenant w~ll continue to occupy the premises during the rehabilitation Any tenant requ~rad to move temporarily or permanently as a result of the rehabilitation*, must be pa~d relocatlon/d~splacement costs as outhned ~n the City's Tenant Assistance Policy Page 10 *Any displacement ~nclud~ng tenants who move out as a result of their ~nab~hty to pay ~ncraased rents, are considered d~splaced D~splacement costs are the respons~b~hty of the property owner 4 Property owner agrees that ex~sbng house ubl~ty 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 C~ty shall be the agent for the owner and as such agent shall hold both the owner's private funds and all grant funds ~n escrow for the purpose of disbursement thereof to the contractor 6 Property owner agrees that ~t ~s his/her sole respons~blhty 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 responsibility for any defects, faulty work or ~ncomplete work by the contractor The owner further agrees that the C~ty has no hab~hty for warranty of any of the workmanship or materials furnished by the contractor under the contract The owner further agrees that latent or h~dden conditions ~n the property which were not ~ncluded ~n the onglnal inspection and work wr~te-up of the C~ty are not the respons~b~hty of the contractor nor of the C~ty, but remain the respons~b~hty of the owner 7 As part of the consideration for prowd~ng the funds to rehabihtate property as described herein, the property owner agrees to maintain and keep the property ~n good repair after the completion of the work to be performed by contractor, taking ~nto cons~derabon the ability 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 in effect when the rehab~htat~on was completed Owner agrees to do this during the term of the loan agreement and understands that ~f at anybme the property fa~ls to meet these code standards, the loan amount will become due ~mmedlately 8 The owner shall ~ssue a written Nobce to Proceed w~thm thirty (30) days from the date of acceptance of the contractor's bid and proposal If the Nobce to Proceed ~s not received by the contractor w~thm th~s 30-day per~od, the contractor has the option of w~thdrawlng h~s/her b~d and proposal If the contractor chooses to do this a written notice must be del~verad to the owner w~th a copy to the C~ty The contractor shall not beg~n the work to be performed until receipt of written Nobce to Proceed from the owner after which the contractor shall beg~n the work w~th~n ten (10) calendar days of the date of sa~d Not~ce and shall complete said work w~thln s~xty (60) days or as agreed to in the Rehablhtatlon contract Page 11 9 The contractor shall not assign the contract w~thout wntten consent of the owner and the C~ty and/or ~ts agent '10 The contractor shall not be responsible for any delays ~n the complebon of work due to the following A Any acts of the government, ~nclud~ng controls or restncbons upon or requ~s~t~omng of materials, equipment, tools or labor by reason of war, National Defense or any other national emergency B Any acts of the owner C Causes not reasonably foreseeable by the part~es to th~s contract at the t~me of the execution of the contract which ara 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 pe~ormance of some other contract w~th the owner, riras, floods, epidemics, quarantine restnct~ons, str~kes, frefght embargoes and weather of unusual severity such as humcanes, 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 (within 10 days) not~fles the Owner in wnbng 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 with the penod of excusable delay 11 The contractor shall not be held raspons~ble for praex~st~ng wolat~ons of law ~ncludfng but not restncted to zomng or building code ragulabons at the property hsted ~n the contract Befora beg~nmng work, the contractor shall examine the work write-up for comphance w~th the apphcable ordinance and codes for the new or raplaced work and shall ~mmed~ately raport any d~screpancy to the owner Whera the raqu~raments of the work write-up fa~l to comply w~th such apphcable ordinances or codes for the new or raplaced work, the owner and the C~ty w~ll adjust the contract by change order to conform to such ordinances or code and make appropnate adjustment ~n the contract pnce unless waivers in wnt~ng covering the dlfferance 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 term~nabon of the contract 13 B~ds or proposals w~ll be submitted at the b~dder's nsk and the C~ty and/or the owner reserve the nght to dechne funding for projects not ~n comphance w~th the gu~dehnes Page 12 14 Subcontractors shall be bound by the terms and cond~bons of the contract, ~nsofar as ~t apphes to their work This shall not reheve the general contractor from the full respons~b~hty to the owner for the completmn of all work to be executed under th~s agreement and he shall not be released from this respons~b~hty by any subcontractural agreement he may make w~th 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 are necessary for the protection of the adjacent property and to notify the owner thereof of such hazards 16 Repairs shall be made to all surfaces damaged by the contractor resulting from h~s/her work under th~s contract at no add~bonal cost to the owner Where "rapa~r of existing work" ~s called for by the contract, the feature shall be placed in "equal to new condition" 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 in design and dimension 17 After the final ~nspectlon and acceptance by the owner of all work under the contract ~nclud~ng cleanup, the contractor shall submit to the owner for approval a requisition for payment When the required warranbes and other required documents have been submitted and the release of hens have been executed by the contractor, the final payment w~ll be made The payment w~ll ~nclude any amounts rema~mng due under the contract as adjusted ~n accordance w~th approved change orders Payments will be made w~thln 15 days of formal requls~bon for payment Part~al payments will be made at d~scret~on of the owner with the consent of the C~ty 18 A Rehab~htaflon Loan may be made to cover the cost necessary to bnng the dwelhng ~nto conformance with City of Denton Codes The two categories of repairs hsted below are to be included as priority ~tems A p~ec~u~red Repairs Code v~olat~ons which create hazardous conditions ~n regard to safety or health w~ll generally ~nvolve the basic heabng, plumbing or electrical systems B Recommended Reoa~rs Code corrections or preventive maintenance efforts which should be undertaken to avoid more costly future action (1) Heabng, plumbing and electrical improvements (2) Weathenzat~on Page 13 (3) Extenor work such as roofing, s~d~ng, painting, step and porch , repair and retaining walls (4) Interior work such as renovabon and repair of ex~sflng k~tchen and bath fac~hbes 19 The Denton Central Appraisal D~stnct automatically reappraises any house where a building permit ~s ~ssued Participants ~n the Rehab~lltabon Program should be aware that the appraised value of their property may ~ncrease which consequently may cause their yearly property taxes to ~ncrease The pohcy shall be thoroughly explained to any person applying for rehab~l~tabon assistance 20 Change orders may be made to cover an ~tem of work which cannot be determined unbl sometime dunng the course of the rehabilitation work Change orders w~ll be considered as follows A Change orders are used to add work necessary to correct inc~p~ent ~tems that have been found to be defecbve after work ~s in progress but were not ant~cipated at the t~me the contract was executed B The change order amount ~s hm~ted to a maximum of 10 percent (10%) of the total contract amount If it is necessary to request a change 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 will 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 prewously b~d amount When ~tems are deleted, but do not have specific costs, ~n such cases the contract shall be reduced by negotiating the cost at preva~hng rates D All change orders shall be executed by the property owner, contractor, and a Commumty Development official E Except for the purpose of affording protection against any emergency endangenng I~fe or property, the Contractor shall make no change ~n the work or rehab~htabon, prowde any extra or additional work or supply additional labor, services or materials beyond that actually requlrad 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 Page 14 No claim for an adjustment of the contract pnce by the contractor or homeowner w~ll be valid unless th~s ~s done G The approval of a change order shall consbtute author~zabon 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 utilized 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 with the construction contract, Community Development shall advise the property owner of the non- compliance who then shall obtain appropriate action from the contractor No payment shall be processed on a construction contract unbl a contractor has satisfactorily completed all necessary corrective acbon 22 The owner shall be able to select the color and style of certain matenals (~ e carpet, floor covenng, paneling, paint, etc ) 23 The contractor warrants that all materials, fixtures, and equipment furmshed by the contractor and ~ts subcontractors shall be new, of good t~tle and that the work w~ll be done ~n a neat and workmanhke manner Neither the final payment nor any prows~on ~n the contract nor part~al or entire use or occupancy of the premises by the owner shall constitute an acceptance of work not done ~n accordance w~th the Contract or ral~eve the Contractor of I~ablllty ~n respect to any express warranbes or respons~b~hty for faulty materials or workmanshIp The contractor shall promptly remedy any defect ~n the work and pay for any damage to other work resulting therefrom which may appear within a per~od of one year from the date of final acceptance of the work unless a longer per~od is 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~l~tabon 25 Interest of certain federal and other officials A No member or Delegate to the Congress of the Umted States and nc Resident Commissioner and no federal employee shall be admitted to any share or part of th~s contract or to any benefit to arise from same Page 15 B No member of the governing body of the C~ty and no other pubhc official of or w~th~n the C~ty or County who exercises any functions or respons~blht~es ~n connectmn w~th the administration of the Commumty Development Block Grant Program and no other employee of the Department of Planmng and Commumty Development who exercises any such funcbons 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 confhct with the discharge or fulfillment of h~s functions and responslblht~es in connection w~th the carrying out of the Housing Rehab~htat~on Program The length of time 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 hmtted 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 not to convert the rehab~htated umts to condom~mum ownership If the owner does convert rehab~htated umts to condom~mum ownership, the entire loan amount shall be due immed~ately 27 The property owner agrees not to d~scr~mlnate 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 basis that the tenants have a m~nor child who w~ll be residing w~th them, or on the basis that they are a hand~capped individuals 28 The property owner agrees to maintain the rehab~htated property up to adopted C~ty of Denton Building Code Standards in effect the year ~n which the rehab~htatlon was completed Th~s w~ll be applicable for a period of at least ten years after the project is completed 29 The property owner agrees to comply w~th apphcable lead-based paint regulations 33 The property owner agrees to comply with 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 Office VII MINIMUM REHABILITATION STANDARDS Roofe Roofs should not leak and have no ewdence of rotted decking, fascia or soffit Any roof w~th two or more layers of roofing must be stripped to the decking If ~t ~s determined a new roof ~s necessary the decking must be checked for broken Page 16 or rotted decking and shall be repaired or replaced as needed Where new 'decking ~s required the material shall be one-half ~nch plywood or one-half ~nch waferboard to be used w~th H chps between sheets All roofs that are stripped shall be replaced w~th new felt paper, the proper flashing and metal drip edge w~th 240 pound shingles Any mol w~th less than a 4/12 p~tch 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 which m~ght admit moisture ~nto walls New s~d~ng may be apphed only ~f the cost of new s~d~ng and ~nstallabon ~s comparable to the rapa~r and pa~nbng costs of the ex~st~ng s~d~ng Windows All w;ndows and hardware shall operate sat~sfactonly Cracked or broken w~ndows shall be replaced Window glazing shall be weather t~ght and w~ndows shall be weather stripped so as not to allow entry of a~r and water around the glass, sashes or w~ndow casings All w~ndows shall have screens and working locks Drainage The grade of concrete or d~rt should dra~n at least five feet away from foundation walls Site Improvements All replaced concrete surfaces are to be level w~th the w~dths to match the existing surfaces All steps both concrete or wood that pose a threat to the occupants shall be repa~rad or, ~f necessary, replaced w~th treated mater~al or concrete Foundations and Plem Skirting shall be slx (6) ~nches underground level If ~t ~s necessary to ~nstall skirting, new 22 or 24 gauge skirting shall be used Kitchens K~tchens shall have a specific area which contains a s~nk w~th hot and cold runmng water, counter work space, and space for storage of cooking utensils Page 17 Stall~ All stairs shall provide for the safety of ascent and descent All treads and nsers i should show no ewdence of breakage or have evidence of excessive wear All stairs shall be equipped w~th handrails Utility Areaa Gas or oil fired water heaters or furnaces shall not be located ~n the bathrooms or bedrooms In addition to all plumbing and electrical codes, water heaters and furnaces shall be enclosed w~th a sealed door and adequate upper and lower combustion air All washer and dryer hookups must meet C~ty Code Structural System The wood, masonry or steel components shall be ;n serviceable condition for the expected useful I~fe of the rehab~htated building Structural members which are ~n seriously deteriorated cond~bon shall be replaced Sagging and unlevel floors shall be raised and stab~hzed as level as possible w~thout causing ~ntenor damage Termite inspection and treatment shall be done ~f ewdence of active ~nfestabons ex~st A certified pest control company w~ll carry out the treatment and present documents of proof Electrical Syatem All replacement of ex~sbng w~nng and equipment shall be done m conformance w~th the Nabonal Electnc Code and the C~ty of Denton Code Any potential source of electrical hazard or ~gmt~on of combustible material shall be corrected GFCl outlets shall be used ~n bathrooms, k~tchen, garage, and exterior , receptacles Addttlonal outlets shall be added to eliminate extension cords and, at the request of the C~ty Inspector, to meet C~ty Codes Plumbing The plumbing system shall operate free of fouling and clogging, and not have cross-connections which permit contamination of the water supply or back s~phonage between fixtures All s~nks, lavatories, 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 Page 18 sewer hnes shall have accessible cleanouts All water heaters shall be ~nstalled w~th double wall vent stack, a pop-off valve, and overflow to the extenor of the structure Mechanical Equipment All gas fired heating umts must be vented w~th double wall p~pe and proper upper and lower combustion air The unit shall not be installed ~n a hwng area such as bedrooms or under stairways R~g~d gas p~pe must be used to supply heating un~ts w~th a maximum of three (3) feet of flexible p~pe from the stop to the apphance All duct work 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 repaired Insulation and Weatherizat, on A R-30 ~nsulat~on value ~n the attic shall be required Exterior Doors AIl extenor doors shall be sohd core AIl locks shall be capable of bghtly securing the door and shall be readily openable from the ~nslde without the use of keys All extenor doors shall be weather stripped so that there ~s no significant entry of a~r or water ~nto the structure Porches and Decks All porches and decks shall be safe and capable of supporting anbc~pated loads All porches and decks m deteriorated cond~bon and which serve no useful purpose or which are not economically repairable shall be removed Porches and decks 30 ~nches above grade shall have guardra~ls and fhghts of stairs w~th four or more nsers They shall have a handrail on at least one s~de Gutters and Downspouts Gutters and downspouts should ex~st where they are deemed necessary to promote proper drmnage Gutters w~ll not normally be installed ~f they do not already ex~st Downspouts that cannot be connected to dra~n hies shall have splash backs w~th proper s~te grading Page 19 ,Chimneys and Vents Furnace and water heater vents shall be double wall vent p~pe Ex~sbng unhned masonry chimneys hawng open mortar joints or cracks shall be removed or made safe by ~nstallatlon of a UL approved flue hner Vent-a-hood stacks shall be vented through the roof Interlore All floors, walls, and celhngs shall be maintained ~n good, clean, and samtary condition All peehng paint, cracked or loose plaster, and other defective surface conditions shall be eliminated All doors shall be operabonal Carpet and vinyl 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 Ex~st~ng carpet shall be cleaned by a commercial steam cleaner, ~f necessary Bathrooms An operational water closet, tub or shower, and lavatory should be in the bathroom Hot water should flow to the lavatory and tub or shower Cold water should be supphed to all fixtures E~ther a w~ndow or an exhaust fan must be present to properly vent the bathroom Cabinets Built-in k~tchen cabinets shall be repaired up to 50 percent of the cost of new cabinets Bathroom cabinets are not required Page 20 APPENDIX H RENTAL REHABILITATION PROCEDURES The following hst of procedures is designed to insure that property owners understand their responsthflmes under the Rental Rehabflltataon Program Please call the Community Development Office at (940) 349-7726 if you have any questaons regarding these procedures 1 Return completed apphcatmn Include a copy of property deed, tax receipts from all taxing entrees, proof of insurance coverage on the property and documentatmn of all owner(s) income and assets* 2 A set of work speelflcaaons must be drawn up by the owner and approved by the Commumty 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 wxth~n a margin of ten percent of the estimate determined by the Community Development Office 4 Upon project approval, a tatle search must be submxtted 5 Certification that all tenants have received t~mely written notace that they will not be displaced by the project must be submitted within two weeks of apphcaUon submission A copy of the City of Denton's Tenant Assistance Pohcy must accompany the notice to the tenant 6 Requests for all interim and final payments should ~nclude an ltemxzed hst of completed work,and ~ts cost and two "Requests for Payment" s~gned 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 inspection must be completed by Community Development 8 Fmallpayment is contingent on receipt of the following by Community Development a) s~ned affidavits from all subcontractors stating that they have received full payment b) affidawt from general contractor and signature on lien assignment c) two executed requests for payment * Doeumentataon of income sources may include but is not hm~ted to the following Currqnt year's income tax Return with W-2's for each household member who has filed tax returns. Most]current Social Security income statement if applicable Paycl~eck stubs for last four weeks for each emoloved household member. Names and addresses of all retarement income or-an9 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 d~vorce or ff you were awarded property through a divorce Name, address, account number(s) of all banks, credit umons, savings banks, IRA accounts, etc for all household members who have any such accounts AAA04604 - 1 - APPLICATION FOR THE CITY OF DENTON RENTAL HOUSING REHABILITATION PROGRAM OWNER PROPOSAL FORM CONTACT AGENCY COMMUNITY DEVELOPMENT OFFICE 100 W OAK, SUITE 208 DENTON, TX 76201 TELEPHONE NO (940) 349-7726 INSTRUCTIONS PLEASE COMPLETE ALL SECTIONS OF THIS OWNER PROPOSAL FORM IF YOU NEED ASSISTANCE IN COMPLETING THE FORM, CONTACT THE AGENCY LISTED ABOVE O~ATA A LIST THE NAME S ADDRESS(ES) AND TELEPHONE NUMBER(S) OF ALL OWNERS OF THE~OPOSED PROPERTY B TYPE OF OWNERSHIP (check one) [] (a) Sole Owner [] (b) Partnership [] (C) CorporaUon [] (d) L~maed 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 - The following ~nformation must be provided on all ex~stlng tenants Apphcat~ons will not be processed untxl all tenant mformaUon is reeexved TENANT'S CURRENT APT NO OC- OVER ETHNIC *FEM HANDI- SEC 8 INCOME NAME RENT NO CUPANTS 65 CODE HHH CAPPED Ethnw Code 1 - White 2 - Black 3 - Amer Indxan/Alaskan Native 4 - As~an Pacific Islander 5 - Hispanic 6 - Other Secuon $ C - Cemficate V - Voucher N - None * Please note a female head-of-household is a female with dependent children SECTION II PROPERTY DATA NOTE PROVIDE INFORMATION FOR ALL UNITS A UNIT NUMBBR B NL~fBER OF BEDROOMS, EXISTING C NUMBER OF ~IiDROOMS, AFrltR REHABILITATION D CURRENT RENT E PROJECTED RENT AFTER REHABILITATION F UNIT OCCUPI~,D (0) OR VACANT AAA04604 - 3 - A ORIGINAL MORTGAGE Grig Amount Mortgagee Balance B OTHER LIENS Amounts Lien Holder Total 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 pohcy) 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 - SECTION III Note: Income ellglbmty is based on household income which includes the mcome of all working members of the household. If the property is owned by a partnership or corporation, all partners and/or principals must be income eligible. Please list all income amounts below and provide doeumentatton of each income source (To be completed by all households with ownership in the property ) Household Household Incol~ Typ~ Owner Member #1 Member//2 Total i Salary Ovemme pay Fees/t~ps Commissions/bonuses Interest and/or d~wdends Net income from business Net rental income Social Security, pensions retirement Unemployment benefits, workers compensaUon, etc Alimony, child support Welfare pymts, AFDC, food stamps, etc Checking accounts Sawngs/CD accounts Stocks, bond, etc Rental property income Value of private resxdence Life Insurance Other AAA04604 - 5 ~ 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 AOREES. 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 VERIFI(~ATION 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 Owndr's Sagnature Socml Secunty Number Date Co-Owner's Signature Social Secunty 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 - APPENDIX III TON, TX Rehabilitation rget Area