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