2010-234sAlegahour documentslordinances11012010 draft hip ordinance.doc
ORDINANCE NO. 2010-234
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS,
APPROVING GUIDELINES FOR OPERATION OF THE CITY OF DENTON HOME
IMPROVEMENT PROGRAM AND ELIGIBILITY CRITERIA; AUTHORIZING
EXPENDITURES IN EXCESS OF $50,000 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 participates in a Home Improvement Program administered
by the City of Denton Community Development Division and funded through a federal grant from
the Department of Housing and Urban Development; and
WHEREAS. The City Council deems it to be in the public interest to approve the Program
Eligibility Criteria for the 2010 Program year; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The City Council approves the 2010 Home Improvement Program Guidelines
and Home Improvement Program Eligibility Criteria which are attached hereto and made a part of
this ordinance for all purposes as Exhibit "A" and authorizes the City of Denton Community
Development Division to administer this program.
SECTION 2. The City Council authorizes the expenditure of funds in excess of $50,000 by
the Community Development Division for projects meeting Program Guidelines and Criteria,
subject to compliance with competitive bidding laws, where applicable.
SECTION 3. This ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the day of , 2010.
S:V.egal%Our Documents%OrdlnnncesUO12010 Dmft FOP Orttlnmce.doc
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
BY:
Page 2 of 2
ri
02
2010
Home Improvement
Program Guidelines
"4 ~ I /
Available in Spanish 1 Disponible en Espanol
OPPORTUNIN Effective Date: 1010112010 p12Y
ppORNNITI'
1
Applicant(s) Is Subject
To Any Guideline
Changes Prior to
Contract Execution
TABLE OF CONTENTS
INTRODUCTION ...................................................................................................................................................4
Home Improvement Program
..5
Description of General Program Procedures
..5
1. PURPOSE
..5
II. DESIGNATED AUTHORITY
..5
III. ELIGIBILITY REQUIREMENTS:
5
IV. APPLICATION PROCESSING
..7
V. SELECTION OF RECIPIENTS FOR ASSISTANCE
..8
VI. WAIVERS AND APPEALS PROVISION
..8
VII. FINANCIAL ASSISTANCE
..8
VIII. CONTRACT REQUIREMENTS
..9
IX. PROJECT FEASIBILITY CRITERIA
10
X. PROJECT COST LIMITS
11
XI. ALLOWABLE EXPENSES
11
XII. PROGRAM ACTIVITY OPTIONS
11
A. Owner-Occupied Rehabilitation ........................................................................................12
B. Optional Reconstruction ....................................................................................................12
XIII. CONTRACTOR SELECTION AND PROJECT MONITORING
12
XIV. PAYMENTS TO CONTRACTOR
13
XV. CONTRACTOR DEBARMENT
14
APPENDICES Index
15
APPENDIX 1 Qualifying Income Limits for Federally Assisted Programs
16
APPENDIX 2 Targeted Neighborhoods Map
17
APPENDIX 3 HOME Certification and Participation Agreement
18
APPENDIX 4 Temporary Rehousing Questionnaire and Agreement
20
APPENDIX 5 Space & Amenity Allowances For Reconstruction Activities
21
APPENDIX 6 Lead Based Paint Hazard Control Relocation Policy and Procedure
23
3
INTRODUCTION
The City of Denton Home Improvement Program's objective is to assist low and moderate-income families in
securing safe, sanitary and decent housing. This objective is accomplished through owner-occupied
rehabilitation and optional reconstruction activities. Rehabilitation of an owner-occupied dwelling corrects
code violations and makes needed repairs. If a dwelling is not feasible for rehabilitation, the applicant may be
eligible for a replacement single-family dwelling. Optional reconstruction activity provides funds to demolish
dilapidated dwellings and construct new modest, energy efficient and safe single-family dwellings on owners'
lots.
The Home Improvement Program is administered by the City of Denton Community Development and is
funded by federal grant dollars from the United States Department of Housing and Urban Development (HUD),
participating owner funds, program income and other grant and private dollars, when available.
The following pages contain a detailed description of the Home Improvement Program including program
and project guidelines, application instructions and project bidding process. The purpose of the guidelines is to
explain to potential applicants and the citizens of Denton, the Home Improvement Program and the levels of
assistance available. For further information or clarification of the guidelines, please contact the:
Community Development Division
601 E. Hickory Street, Suite B
Denton, Texas 76205-4303
(940) 349-7726
Located at City Hall East - 2"d Floor
4
Home Improvement Program
Description of General Program Procedures
1. PURPOSE
A. The City of Denton Home Improvement Program provides technical and financial assistance for eligible low
and moderate-income households to complete rehabilitation or reconstruction of their principal residence.
B. Assistance shall be subject to the availability of program funds. Administrative procedures will be modified
to meet any change in rules and regulations of HUD that may occur over time.
II. DESIGNATED AUTHORITY
A. Administrative authority for implementation of the program will rest with the City of Denton Community
Development Division. Community Development staff approves contractual and budget changes, as needed for
project completion.
B. The Community Development Administrator will have the responsibility for final determination of the amount
of assistance available to individual applicants, in accordance with the program guidelines, policies and
procedures.
C. The Community Development Administrator will be responsible for approval of applicant eligibility for the
program and final approval of applicants to be assisted.
III. ELIGIBILITY REQUIREMENTS:
Eligibility requirements must be met for both the applicant's household and the property. Eligibility for assistance
is completed in two phases as described in sections A. and B. below.
A. Applicant(s) / Household Eligibility Requirements:
1. Must be a United States citizen or a legal resident alien.
2. Must own, currently occupy and have occupied the dwelling for at least the past two consecutive years.
(The period of time an applicant has lived in a property under a lease for purchase or contract for deed
form of purchase may be taken into consideration in calculating the two consecutive years.)
3. Must hold a Fee Simple Title to the property. City staff will verify ownership through a general title
search.
a. If applicant is purchasing their home by a "contract for deed" (or a like contract), where applicant
does not gain title to the property deed until all contractual obligations have been met, applicant is
not eligible for assistance. The seller must provide the purchaser with a filed warranty deed on
the property to satisfy this eligibility requirement.
b. If applicant(s) inherited the property, the legal documents establishing applicant(s) has fee simple
title to the property must be on file in the Denton County Clerk's Office. Applicant must provide
proof of financial responsibility for the property (i.e. tax payments, and/or utility payments, fee
simple title, executed, filed affidavit of heirship, etc.), and, proof of residency, both, for not less
than the most recent, two consecutive years.
4. Must meet program's income limits.
a. Gross annual total household income is at or below the following, adjusted for family size.
Current maximum income limit by household size is (income limits effective 6/26/2010):
5
Rehabilitation 1 Reconstruction
80% of the AMI
Household Size
Maximum Income Limit
1
$38,300
2
$43,750
3
$49,200
4
$54,650
5
$59,050
6
$63,400
7
$67,800
8
$72,150
b. Must not have assets (total combined for all household members) in excess of $100,000.
NOTE 1: The appraised value of the applicant's property is excluded in total assets calculation.
NOTE 2: Household income is calculated based on HUD's Technical Guide for Determining Income
and Allowances for the HOME Program as described in the City's Home Improvement Program
Policies and Procedures Manual.
5. Must have acceptable credit under the City of Denton Community Development underwriting policy.
Applicant(s) must exhibit the financial ability to pay creditors, including the following basic housing
expenses:
a. Home Mortgage Payment, including the loan with the City of Denton for Home Improvement
assistance.
b. Loan and revolving credit payment(s).
C. Property Taxes (City, County, DISD) for all owned properties.
d. Homeowner's Insurance Policy premiums
e. Utilities: electrical/water/sewage/solid waste and gas
B
5. Applicants denied assistance due to poor credit history may be reconsidered for the program upon
verifiable completion of six (6) consecutive months of successful debt management with Consumer
Credit Counseling of North Central Texas or other debt management companies. Note: Debt
management will be recertified prior to signing contracts.
7. Must demonstrate that income exceeds projected housing expenses and would allow the applicant to
maintain the dwelling.
8. Homeowner may be required to provide owner contribution toward project cost (see Section VII.A.).
9. Pre-existing mortgage note balance cannot exceed 80 percent of the property's appraised value for
rehabilitation and 70 percent of the property's appraised value for reconstruction.
10. See "household" guideline at section III.B.IO.a. below.
NOTE: The City of Denton reserves the right to request an independent market analysis.
Property Eligibility Requirements
1. Must be zoned to allow for single-family construction and be situated in a Targeted Neighborhood
within the city limits of Denton (Refer to Targeted Neighborhoods Map - Appendix 2).
2. Must exhibit building code deficiencies that make the dwelling unsafe or unsanitary.
3. Structure must be more than 20 years old.
4. May not have existing property code violations (such as high weeds, trash, debris, junk vehicles, etc).
Any liens placed on a property for correcting any past or present code violations must be paid in full by
the time application processing occurs. Any items cited as a code violation on the property must be
corrected or removed before assistance is provided.
6
5. Must be serviced by or be accessible to City-approved water supply, sanitary sewer and electrical
system.
6. Must meet all of the City of Denton's Land Development Codes.
7. Must comply with and meet all environmental regulations; i.e., historical, floodplain, noise, lead, etc.
8. May not exceed Community Development Replacement Housing Space Allowances Policy for
reconstruction. Projects that would exceed the set standards due to property deed restrictions or
neighborhood minimum requirements are not eligible for assistance.
9. Must be covered by an approved homeowner's insurance policy.
NOTE: If an applicant's property is not currently insurable because of its present condition or the
property is going to be reconstructed, the applicant must sign a HOMEOWNER AFFIDAVIT OF
UNDERSTANDING AGREEMENT FOR HOMEOWNER'S INSURANCE to satisfy this eligibility
requirement. Proof of homeowners insurance must be provided at completion of a rehab or
reconstruction.
10. Households and/or properties previously assisted through this program may or may not be eligible for
additional assistance as follows:
a. A household that has received assistance to rehabilitate or reconstruct a home that they
subsequently sold is not eligible for assistance on another home they purchase, regardless of the
circumstances.
b. A property that received rehabilitation assistance after March 1996 when the total dollar amount
spent was above $30,000 is not eligible for additional assistance from this program.
c. A property that received rehabilitation assistance before April 1996 may be eligible for additional
assistance when all liens have been paid and released.
d. A property that has received reconstruction assistance is not eligible for additional assistance
from this program.
IV. APPLICATION PROCESSING
A. To be placed on the-waiting list, applicants must meet the following criteria:
1. Household's total gross annual income does not exceed current program income limits (See Appendix
1).
2. Owner is living in and has owned the single-family dwelling for not less than twelve consecutive
months.
Property is located in a Targeted Neighborhood (see Appendix 2).
4. Property meets all requirements in Section III.B.
5. Applicant must complete a Waiting List Application Form and attach a copy of their property deed or
proof of ownership. (Waiting List Application Forms are available at the Community Development
Division, 601 E. Hickory Street, Suite B Denton, Texas, 76205, 940-349-7726.)
B. Upon submission of a waiting list application to Community Development, applicants are placed on the
waiting list in the order in which their application was received.
C. When applicant reaches the top of the waiting list, s/he will be notified in writing to complete the application
process and must provide all items requested on the checklist. In addition to checklist items, further
documentation may be required to process application.
NOTE: Contact deadline dates will be specified in the notice to apply letter from Community Development.
Applicant must schedule an appointment to apply and must submit required application information prior to
the stated deadline. These deadlines are strictly enforced.
D. Application information regarding household income and composition must be complete, accurate and up-to-
date. All information will be verified by Community Development staff.
7
Any intentionally falsified information will cause the application to be rejected and the applicant will not be
allowed to reapply. Failure to disclose information that may affect eligibility requirements 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 information in order
to meet eligibility requirements.
E. Applicant must provide a detailed personal budget that includes household's expenditures and net incomes to
determine if household has enough discretionary income available to pay back a loan to the City.
F. Applicant must attend a homeownership workshop, with emphasis being placed on maintenance, budgeting,
cost effective decorating, and responsibilities of home ownership.
G. Community Development staff will notify eligible applicant(s) of the financial assistance category he/she is
eligible for under the program guidelines. Applicant will be notified that final eligibility for assistance is
determined upon completion of the feasibility study of the property. Ineligible applicants will be notified of
the reason their application for assistance is being rejected.
H. Any applicant who feels that s/he has been unjustly denied assistance under the Home Improvement Program
should follow the appeal procedure outlined in Section VI.
V. SELECTION OF RECIPIENTS FOR ASSISTANCE
A. Assistance will be provided to households on a first come, first served basis. The date upon which
the Eligibility Certification Part I was approved will be used to determine the order of assistance. In
addition to the date certified, assistance is also dependant on the availability of funds These two
factors will determine the order of assistance and date funds will be made available.
*The HIP Program project targets stated in the Action Plan must be met. If funds needed to complete a
project are not available, the applicant will be assisted based on the date of application submission when
funds become available.
B. Community Development Staff will provide counseling and assistance as needed to facilitate the applicant's
rehousing/housing, including the following:
1. Information on the program and rehousing/housing options available.
2. Assistance in soliciting bids for replacement housing.
3. Assistance in contractual compliance between applicant and contractor.
4. Assistance in inspection of construction of replacement dwelling, if applicable.
VI. WAIVERS AND APPEALS PROVISION
A. Request for Waiver: The City of Denton Home Improvement Program must follow specific guidelines in
order to assure proper administration and management. In the event that an applicant feels that his/her
circumstances require special consideration, s/he may request, in writing, a waiver from the usual
requirements. All requests should specify the requirement(s) to be considered for waiver and state the
applicant's reason(s) or special circumstances why s/he believes a waiver should be approved. The
Community Development Administrator will review requests on a case-by-case basis. Applicant will be
notified in writing of the final decision.
VII. FINANCIAL ASSISTANCE
A. Owner Contribution is a percentage of the total project cost that the applicant must provide at contract
signing. These funds are held in an escrow account and will be expended before City funds are used when
making contractor payments. The owner contribution increases on a sliding scale as household income
increases. See Appendix I for percent of owner contribution by income ranges and family size.
B. City of Denton Funds: The City of Denton will fund the remaining project costs using Federal HUD CDBG
and HOME dollars, program income and private funds, when available.
C. Term of the Note is determined by the activity to be completed and/or total project cost as follows:
Activity / Project Cost Term
Rehabilitation/Below $10,000 60 months (5 years)
Rehabilitation/Between $10,000 - $25,000 120 months (10 years)
Rehabilitation/Above $25,000 - $45,000 180 months (15 years)
Reconstruction or Rehabilitation/Above $45,000 240 months (20 years)
D. Financial Assistance Levels: The City-funded dollars are payable through a two-part loan. See Appendix I
for income ranges by household size, payable to deferred loan ratios and description of Payable and Deferred
loans.
E. Applying to the Home Improvement Program is voluntary. Funds for temporary relocation are not provided.
VIII. CONTRACT REQUIREMENTS
A. The City of Denton will be in the first lien position. When a first lien position is not possible, the City may
accept second lien position, subject to the review and approval of the Community Development
Administrator. Liens are released once all the requirements and conditions of the deed and promissory note
have been met.
B. DEFAULT ON CONTRACT: If the applicant defaults on their contract, the lien will be called due in full,
and referred to the City of Denton's Legal Department to begin acceleration of the note as allowed by law.
The City will make every effort to work with the applicant to avoid foreclosure and will examine each
situation on a case-by-case basis. Examples of loan default include, but are not limited to: 1.) Delinquent loan
payments; 2.) Failure of grantee to reside in the assisted dwelling unit as the principal residence of applicant;
3.) Failure to maintain adequate homeowner insurance coverage; 4.) Failure to pay property taxes when due.
C. SALE OF PROPERTY: In the event the grantee sells the property prior to maturity of the note, the sum of
the unpaid balance of the loan and the unforgiven balance of the deferred loan amount will become due
immediately. Under no circumstance will assistance be provided to grantee on any future property purchased.
D. DISCONTINUATION OF RESIDENCY: In the event the owner(s) no longer resides in the unit due to
death or a permanent medical condition and the heirs/owner decide to sell the property, the City of Denton
will accept as settlement of the note the lesser of:
1. Seventy (70) percent of the property's market value at the time of sale (the City reserves the right to
conduct an independent appraisal), or,
2. Payment of the entire loan balance (both payable and forgivable) owed at the time of grantee's death or
date grantee was no longer able to reside in his/her home due to medical reasons.
If the heirs decide to reside in the property, the City of Denton will negotiate a modified and/or continuation
of the note depending on beneficiary income and ownership circumstances. If the heirs decide to set up the
property as a rental unit, they will pay the balance due as calculated in "D" above and may request a monthly
payment arrangement. The heirs will be required to sign a Modification of Note and Lien.
E. TEMPORARY DISCONTINUATION OF RESIDENCY: In the event the owner(s) temporarily
discontinues residence due to a medical condition, but has a all intention to return to the primary residence;
owner must continue to make timely loan payments and comply with the following:
1. Keeping the property in good repair and condition;
2. Paying all taxes and assessments on the property when due;
3. Preserving the lien's priority as it is established in this deed of trust;
4. Maintaining in a form acceptable to Beneficiary, an insurance policy;
a. If a house remains vacant for 60 days or longer, an insurance company could cancel the
policy, or deny claims. It is the homeowner's responsibility, if the home is vacant for
more than 60 days, to ensure that the house has required insurance coverage.
Homeowner is responsible for contacting their insurance company to ensure coverage.
Coverage must comply with the following:
9
covers all improvements for their full insurable value
- contains a replacement cost coverage clause for the reconstructed structure
provides fire and extended coverage, including windstorm coverage
protects Beneficiary with a standard mortgage clause
provides flood insurance at any time property is in a flood hazard area
F. After homeowner returns home, it will be the homeowner's responsibility to ensure that the policy
is a homeowner's insurance policy and complies with all contract requirements. LOSS OF
HOUSEHOLD INCOME: If, after the project begins, a household experiences a permanent, substantial loss
of household income, an applicant may request a re-evaluation of their total annual gross household income.
This evaluation may result in a decrease in the payable portion of the note. The loss of income must be from
an income-earning household member(s) whose income was used in determining tl:e original loan
assistance category. Please note: Loss of employment (voluntarily or involuntarily) is not considered a
"permanent loss". For purpose of this program "permanent loss" is defined as:
1. death
2. retirement (must be 62 years of age or older)
3. permanent disability
4. Other substantial permanent loss of income, when approved by Community Development
Administrator.
All household members must complete all income information and forms as required in section W,
Application Processing_- Application processing will be completed to determine if an adjustment and/or
extension to the payable portion of the note is eligible. A determination will be made after evaluating the
household size and income using the program guideline income limits and financial assistance categories that
are being used at the time the request for reduced loan payment is made. When a loan adjustment and/or
extension is granted, the applicant must sign a Modification and Extension of Real Estate Note and Lien
reflecting the adjustment and/or extension of the note.
IX. PROJECT FEASIBILITY CRITERIA
A. A decision as to the type and amount of assistance an applicant is allowed is based on the feasibility of a
property to be rehabilitated. An assessment will be completed using the following factors:
1. Determine if the rehabilitation cost will be affected by: the zoning of a property, a property being
located in a designated 100-year floodplain or floodway, a need to abate possible presence of lead-
based paint, possible historical restoration requirements, or if a rehab will reduce noise levels if
property is in a high noise area.
NOTE: The Floodplain Management regulations may limit the total cost of all non-code repairs for any
dwelling located in a designated 100-year floodplain to 50 percent of a property's pre-rehabilitation
appraised value as set by the Denton Central Appraisal District (dwelling [not land] value only).
2. Determine if the framework and foundation of a dwelling are stable, or can be made stable through
rehabilitation. (May allow for structural engineer evaluation of structure when staff cannot determine.)
3. Lead-based paint hazard reduction techniques will be used when lead-based paint exceeds HUD's
acceptable limits for lead content in existing paint. The limits for lead content exceed HUD's limits
when lead content exceeds 1 mg per cmz (one milligram per centimeter squared), or 5000 ppm (parts
per million). The reduction techniques used by this program are described and found in the U. S.
Department of Housing & Urban Development's publication, Guidelines for the Evaluation and Control
of Lead-Based Paint Hazards in Housing, issued June 1995.
NOTE: The homeowner may be required to make arrangements for household's relocation if it is
required in the Homeowner Protection Plan for Lead Based Paint Hazard Control work. See Lead-
Based Paint Hazard Control Policy & Procedure for more information.
4. Is a room addition(s) needed to relieve serious overcrowding?
10
NOTE: Room additions and improvements to relieve serious overcrowding may be eligible and require
the approval of the Community Development Administrator.
B. A structural evaluation and project cost determination is completed. Projects that will exceed the Project Cost
Limits (Section X) are not eligible for rehabilitation assistance. Applicant may be referred for optional
reconstruction assistance.
X. PROJECT COST LIMITS
A. A rehabilitation project must meet all of the following tests to be considered feasible to rehabilitate. Projects
not feasible for the rehabilitation activity may be eligible for reconstruction and must meet the cost criteria in
items 2 and 3 of this section.
1. Using the post project square feet (properties less than 1000 SF use 1000 SF to calculate), rehabilitation
is limited to $55 per square foot of total living space up to a maximum bid limit of $70,000, plus 10%
for potential change orders. Exceptions: An additional $10 per square foot may be available to comply
with lead reduction. An additional $10 per square foot maybe available to comply with historical
requirements. When rehabilitation includes either lead-based paint and/or historical work, a project bid
is limited to a maximum of $80,000, plus 10% for potential change orders.
2. Reconstruction: Reconstruction bid limit, which includes demolition and reconstruction of a home, will
not exceed $99,500, plus 5% for potential change orders.
3. Total project cost will not exceed the current Maximum Per Unit Home Subsidy Limits for Denton as
set by HUD (See Appendix I).
4. The after project appraised property value will not exceed 95% of the current Single Family Mortgage
Limit for Denton as established by HUD (See Appendix I).
B. PROGRAM MINIMUM LIMITS FOR Home Improvement projects: A dwelling needing less than $5000 of
repairs is not eligible for Home Improvement Program assistance.
XI. ALLOWABLE EXPENSES
Federal CDBG and HOME grant funds will be used to pay for eligible project costs to complete substantial
rehabilitation of existing owner-occupied properties and reconstruction of substandard owner-occupied properties.
Some allowable fees are:
o Cost of room addition(s), to relieve serious overcrowding when approved by the Community Development
Administrator.
o Demolition of substandard structures as needed to complete projects.
o Costs necessary to build modest, energy efficient, safe and sanitary replacement of principal residences
o Other eligible expenses the Community Development Division determines necessary to facilitate the
completion of activities allowed by this program (Example: title search, filing fees, platting, engineering
reports, permit and tap fees, etc.)
o Eligible administrative costs.
o Other fees and costs as allowed by the CDBG and HOME regulations.
NOTE: Funds for temporary relocation during project construction are not provided.
XII. PROGRAM ACTIVITY OPTIONS
The Home Improvement Program provides three options. The process required for all activities will be:
Process
o CD staff will complete a project feasibility study. This inspection will include a detailed evaluation of all
deficiencies needing to be addressed to bring the dwelling up to minimum program standards.
o Activity option determined based on feasibility criteria (Section IX.).
o Project details completed and approved by applicant.
11
o CD staff completes a cost estimate of the work to be completed.
o CD Administrator certifies the project as "eligible" or "not eligible."
o If eligible for reconstruction, applicant must sign the Temporary Rehousing Questionnaire and Agreement
(Appendix 4) or for rehabilitation of homes built before 1978, the Lead Based Paint Hazard Control
Relocation Policy and Procedure (Appendix 6).
o Bid packet is prepared, bid out as described in Contractor Selection and Monitoring (Section XIII), owner
chooses contractor from eligible bids, contracts are signed and project begins.
o The City's Building Inspections and CD staff inspects project's progress routinely to ensure compliance with
City codes and project specifications. Community Development staff completes final inspection.
o For reconstruction activity, owner must have utilities connected and provide proof of homeowner's insurance
before property can be occupied.
o Project is closed upon contractor receiving contingency payment; owner receives loan payment schedule;
invoicing begins.
In the event a procedure is not addressed in these guidelines the Program Manager will determine the best course of
action.
A. Owner-Occupied Rehabilitation
This activity will assist eligible applicants rehabilitate single-family principal residences by making needed
repairs with the first priority being to correct code violations. This activity is eligible when a completed
project will yield a structurally sound, safe, sanitary and decent single-family dwelling that meets City's
building codes (see Section IX).
B. Optional Reconstruction
The reconstruction activity is offered when existing dwellings are not feasible for rehabilitation. Optional
reconstruction provides funds to demolish existing dilapidated dwellings and reconstruct modest, energy
efficient, safe and sanitary replacement single-family dwellings.
XIII. CONTRACTOR SELECTION AND PROJECT MONITORING
All applicants are responsible for finding a contractor who will develop a proposal to complete approved home
improvement activity. Eligible applicants may request assistance from Community Development staff to help
homeowner with the bidding process. The homeowner may elect to seek a bid proposal from a qualified contractor
of their choice. Bids by contractors submitted by the applicant must be reasonable (within 10 percent, high or low,
of the Community Development cost estimate). Contractors selected by the applicants must meet eligibility and
insurance requirements.
Contact any reputable and experienced contractor and request a bid for the required work.
IF YOU HAVE ANY TROUBLE FINDING A CONTRACTOR, contact any of the following places for assistance:
• Your local Better Business Bureau
• Any friends or neighbors who have had remodeling done to their properties.
• Chamber of Commerce
• Community Development Contractor's List
When a contractor comes to meet with you, you should:
• Show him/her the mandatory work items that have been identified by the Community Development per the
work write up, construction plans and project standards.
• Advise him/her that the bid proposal must be returned to you for submission to the rehabilitation program by
a due date.
DO NOT SIGN ANY AGREEMENT WITH THE CONTRACTOR.
12
Owner must submit the contractor's bid proposal to the Community Development at 601 E. Hickory Street, Suite B
Denton, TX 76205.
The Community Development staff will review the proposal to verify that:
The contractor is licensed and has all City-required insurance coverage.
2. All required improvements have been included in the bid.
3. The proposed work is in conformance with the program's General Specifications.
4. All proposed costs are reasonable (as verified by CD staff prepared cost estimate).
5. The contractor chosen by owner has not been disqualified by any local, State or Federal government
agency.
Any contractor whose name appears on the most current HUD or City of Denton Debarred Contractor's List will
not be eligible to participate in this program. References will be checked and claims of substandard workmanship
will be cause to declare a contractor ineligible. The contractor must also submit all required proof of insurance
forms and bonds (if applicable). Failure to submit these will result in rejection of the bid proposal.
The bid proposals that are submitted by the applicant will be reviewed by the Community Development to
determine if the total bid price is reasonable per cost estimate and under the maximum allowable amount. THE
CITY OF DENTON AND THE APPLICANT RESERVE THE RIGHT TO REJECT ANY AND ALL BIDS.
If the Community Development Administrator approves the bid proposal submitted by the applicant, the
Community Development staff shall proceed.
A construction contract must be signed. Before the contractor can start work, the applicant must issue a notice to
proceed. After the owner's three day right of rescission has passed, contractor must apply for and obtain approved
appropriate building permits as required by the City of Denton Building Inspections Division before any work may
begin. When a project involves reconstruction of a substandard home, contractor must have an approved building
permit in hand prior to applying for a permit to demolish the substandard structure.
The contractor's work will be monitored by the applicant, Community Development staff and the City of Denton
building code inspector. If the applicant considers any work done by the contractor to be unsatisfactory or
incomplete, the applicant should advise the contractor of the discrepancy and ask that it be corrected. In the event a
dispute exists between the applicant and the contractor with respect to the work, the City shall take appropriate
action in accordance with the provisions of the construction contract to assure that the applicant is satisfied before
making any payment to the contractor. In the event a dispute cannot be resolved, the Department Director shall
consider all pertinent facts and shall decide an appropriate course of action to resolve the dispute.
Acceptance of Work
1. Final Inspection: In order for the contractor to close out a project, a final inspection shall be made by
the City of Denton building code inspector, the Community Development staff, and the applicant. If
the final inspection results in no additional work or no specified corrections, the applicant shall sign
final payment request stating that all work has been completed to their (applicant's) satisfaction. The
building code inspector shall sign a final inspection form to confirm the same. At this time, the
contractor is advised to submit to the Community Development copies of all warranties and releases of
liens from subcontractors and suppliers prior to contingency payment.
2. Warranty of Work As stated in the contract, the contractor shall guarantee the work performed for a
period of at least one-year from the date of final acceptance. The contractor will return in thirty (30)
days and ask the applicant if any additional repairs are necessary. Any deficiencies or necessary repairs
to specified work will be completed at this time.
XIV. PAYMENTS TO CONTRACTOR
A. The contractor shall receive approved final payment, minus a 10 percent contingency, for completed contract
within 15 working days after final inspection approval. The contingency is calculated on the final contract
amount by adding the total project bid amount plus or minus change orders, minus, if applicable, the cost for
demolition. Contingency is withheld for thirty (30) days from the date of final acceptance by Community
Development staff. After thirty days, if no additional or warranty work remains, the contractor must request
13
written approval from owner and CD staff to release withheld contingency funds. Contractor must endorse
the Mechanic's Lien Note over to the City of Denton and sign a release of note and lien of the Mechanic's
Lien Contract before contingency payment can be released.
B. A contractor may request interim-project payments throughout the course of the project. Interim payments
will be made available to the contractor upon applicant and CD staff approval of any contract work that has
been completed. Contractor will submit a CONTRACTOR REQUEST FOR PAYMENT AND PERIODIC
STATEMENT form to the applicant when requesting payments.
C. An "All Bills Paid" affidavit and release of lien from all subcontractors and suppliers must be submitted to the
Community Development before final payment can be released to contractor. Any electrical, plumbing,
mechanical, window and/or other required permits, Energy Star certification, when required, and termite
inspection report must also be submitted to the Community Development prior to releasing contingency
payment to the contractor.
XV. CONTRACTOR DEBARMENT
A. A contractor will be declared ineligible to participate in projects funded by the City of Denton Home
Improvement Program for one or more of the following causes:
1. Failure to complete a project within the prescribed contract period.
2. Failure to complete warranty repairs within a reasonable time period.
3. Failure to use licensed plumbing and electrical subcontractors.
4. Failure to obtain City-required insurance, i.e., general contractor's liability, automobile liability and
builder's risk (if applicable).
5. Failure to complete work in accordance with program specifications and/or accepted standards of
workmanship.
6. Failure to pay all subcontractors working on the project appropriately and/or by not submitting
affidavits of payment signed by all subcontractors.
Failure to obtain proper permits for work in progress.
Failure to treat applicants with respect and courtesy.
Other offenses not described here when the Community Development Director believes a contractor's
action(s) does not serve the best interest of the program, the City or the applicant.
B. Contractors will be notified of their proposed debarment and will be afforded the opportunity to comment or
appeal the action. All appeals must be made in writing to CD Administrator, Community Development
Division, 601 E Hickory St., Ste. B, Denton, TX 76205-4303 by the 15th day from the date of the notification
letter.
14
APPENDICES
Appendix 1 Qualifying Income Limits and Ranges for the City of Denton's Federally Assisted Programs
Appendix 2 Target Neighborhoods Map
Appendix 3 Homeowner HOME Certification and Agreement to Participate in the Home Improvement
Program Owner Occupied Assistance
Appendix 4 Temporary Rehousing Questionnaire and Agreement
Appendix 5 Space & Amenity Allowances For Reconstruction Activities
Appendix 6 Lead Based Paint Hazard Control Relocation Policy and Procedure
15
APPENDIX 1
FY 2010/2011
City of Denton Community Development Department
Qualifying Income Limits for Federally Assisted Programs
Rehabilitatio
n and Optional Reconstruction Eligible Income Ranges
2-Part Loan Ratio*
*60% Payable / 40% Deferred
*40% Payable / 60% Deferred
*25% Payable / 75% Deferred
*15% Payable / 85% Deferred
Owner Contribution
1 % of Total Project Cost
.75% of Total Project Cost
5% of Total Project Cost
.25% of Total Project Cost
Income Range
Moderate
Low
Very-Low
Extremely-Low
Family Size
80% AMI - 65% AMI
65% AMI - 50% AM]
50% AMI - 30% AMI
<_30% AMI
1
$38,300 - $31,151
$31,150 - $23,951
$23,950 - $14,351
$14,350 or Below
2
$43,750 - $35,601
$35,600 - $27,351
$27,350 - $16,401
$16,400 or Below
3
$49,200 - $40,001
$40,000 - $30,751
$30,750 - $18,451
$18,450 or Below
4
$54,650 - $44,401
$44,400 - $34,151
$34,150 - $20,501
$20,500 or Below
5
$59,050 - $48,001
$48,000 - $36,901
$36,900 - $22,151
$22,150 or Below
6
$63,400 -$51,551
$51,550 - $39,651
$39,650 - $23,801
$23,800 or Below
7
$67,800 - $55,101
$55,100 - $42,351
$42,350 - $25,451
$25,450 or Below
8
$72,150 - $58,651
$58,650 - $45,101
$45,100 - 27,101
$27,100 or Below
*In this two-part loan:
Part I: Payable Loan is based on a percentage of the total City-paid project cost (see Section VE.D.). The payable
portion of the loan is amortized over the term of the note (60 to 240 months - see Section VII.C.), and carries a 2 percent
interest rate. There is no penalty for paying the payable loan off early.
Part H: Deferred Loan is based on a percentage of the total City-paid project cost (see Section VII.D.). This portion of
the loan carries a zero percent interest rate. For every month applicant complies with deed and note requirements, a
fraction of the deferred loan is forgiven (on a 5-year note, 1/60, on a 10-year note 1/120, on a 15-year note 1/180, and on a
20-year note 1/240). The deferred loan terms are from between 60 to 240 months (5 to 20 years) based on project cost
and/or type of assistance activity (see Section VII.C.). At the end of the contract term the deferred loan is forgiven,
provided applicant has satisfied all the conditions listed in the Deed of Trust and Promissory Note. The deferred loan is
secured by a lien on the property.
*Persons aye 62 or older are eligible to receive a reduction of 5% on the payable loan portion. The 5% will be included
in the deferred portion of the loan.
Reportable Income: Gross income for all household members aged 18 and above must be included to determine
some household members' incomes may be excluded when
household's eligibility to receive assistance; however
,
determining the payback category that the eligible household will be approved for. They are: applicant's children,
grandchildren or legal guardians of the applicant who are aged 18 up to 22 and/or children aged 22 up to 25 who are full
or part-time students. Incomes for household members aged 25 and older will be included in determining the payback
category for the household.
Income Limit Source: U.S. Department of Housing and Urban Development. Effective: 6/26/2010
Home 221(D)(3) Maximum Per-Unit Subsidy Limits For Denton - Effective: 7/1/2009
0-BDR=$107,838 1-BDR=$123,618 2-BDR=$150,319 3-BDR=$194,463 4-BDR=$213,462
95 Percent of the 2007 Single Family Mortgage Limit for Denton ($184,028) = $174,827 Effective: 4/10/2010
16
APPENDIX 2
City of Denton, Texas
Targeted Neighborhoods Map
LOOP 288
.P
w
~
6
°
q@
i
HERCULES IxaErr M
1 O
Oia
a 6
\
I
ON
FFY
Y Y
1R
~ ~ a
< f L
0
~P
OOM
a 14R0a.
IOx06 ROw
°2
F
RINEY
-
A. fADNR4
BmNF0
s
MIN
ly
S Y4R
R°
°
N
DEL
it y Y xAn
cn oYla Inv
E
p o Er
o
°
C1
"
:R
d
m
m
4
WINDS OR
yl
ORE•.M 0
D1116ND
Z
Np
Rrxwo.
K
Y
°
FI. RPP
Z
NM
Co
acovA
(V
m
e
eawaA
c
o
6
E4D16.
om
° &
O
I
r
N
nir E
Z
Y'
00
J
rA
U
R D-
UNNERSiTy
ucxr
J
O
n]
J
6
ORF ewnR =
tG3 uxE z
d'
'a
FORE
aofan
N(aO
J
'j~
Q
J
ly
,
C r
V
.NO.
B
RANDYWINE
3
t IN
J
UNIVERSITY
j auReE
..J
NIVfi B
LLI
aernu a
YFmina
a]eR
uua
G
3
F''lE
f,]naa, EMERY
w
`
~
~ B
A IF
DFYENL]
p
p
Ey
c ocu
nouml nnON
s
A
I
~
J
E
G0.
LIT
TTIE
OR
e
~ n "
IID~
m
REDEFNI
.
c
C~~
x[w'PO
'
W
o
\S\
'
,xxlM
R
x
=
LINDEN U
a
R
w
nYafR
E
c Ras rx
OZ
`now J
M OWO
W
X cuu
S
p
Q e
~
. Ar
vnm ~
&
9
EOAN
s~
~
Y
3
IPRMfi
s
~ O
co
D
AY
L NwA
I O ~
~ ~
~ ~
¢
~
~
~
YI
W
D°DDN N
Ncusrox
y xn tl
g
g
PE
ARL
n
Q e0 0.m
OAK
YOkICIAR NDMMw
00
OAH
:
N
HICKOR
a
MVIHE
MY
I
8
SYCAMO E g
0
FE
xEamur uwox
G m
ouo
PRAIRIE
O
J
MckllyN
e9
p
vnuwE
xI
Dxwm
F
W
p
7
O
°l.0
~
ey
g
9
~ ~ LNLaON ~
4
YmE Q
V
~
1:
A
EA LE s
j
w] xIR
MORSE
0
. g F NIN
~
~
I
MORa
fi
MDI
P
~
~
o
a
~
1F
a
m £
SMITH
D
cx
Q
xnoY o
D x
~
MIEN
g
A
.m]
lllOaeY.
YI
VRLO RNF59
DEFR
5
8 --Y
_
oFxwooo
eADaw
oPwxa
R
°
~Ar
vnunwvnroD
~ ~ vI
V
snFNc
ADN
F
X135
m
LAUREL
a
n r
R
I]]4
R
i y
S
y
ED
Z.
e
F ]ER
[
p
f
°JI
9
5
6
Z.
v
~
8P
I. nD
PA
RVIN
17
APPENDIX 3
City of Denton Community Development
Home Improvement Program
12t
EQUAL HOUSW6
f1PPllATI IAIITV
Homeowner HOME Certification and Participation Agreement
Community Development staff:
Homeowner:
Homeowner's Property Address:
Mailing Address (if different from above):
Phone:
Mobile:
Fax:
Email:
1. I certify that 1, Homeowner named above, am the owner/occupant of the property located at the above-referenced Street
Address and that it is my principal residence.
2. As the Homeowner, I acknowledge I am responsible for completing and returning all required documentation to the
Community Development staff within the time period stated on the application materials. Required documentation will
include, but is not limited to, a completed Community Development Home Improvement Program Verification of Income
Application, proof of income and proof of home ownership. If I fail to provide these documents in a timely manner, or if I
fail to respond to any inquiries made by Community Development staff regarding my HOME Application for Assistance, I
may be disqualified from participating in this program and receiving benefits.
3. I understand the funding limitations of the HOME program and have been instructed regarding which services I may receive.
I understand a thorough inspection of my home may result in one of the following recommendations:
a. REHABILITATION- Repairs are made to the existing home in order to eliminate its construction deficiencies, in
accordance with the Home Improvement Program Minimum Construction Standards as established by the City of
Denton Home Improvement Program. The homeowner may be required to make arrangements for relocation while
the rehabilitation takes place,
b. RECONSTRUCTION- Due to excessive construction deficiencies which cannot be repaired or rehabilitated
sufficiently to meet required minimum construction standards, the existing structure is demolished and replaced with
a newly constructed home built on the same site. Reconstructed homes must comply with 2003 International
Residential Code (IRC) standards. The homeowner will be required to make arrangements for relocation while the
reconstruction takes place.
C. NOT ELIGIBLE - Results when the required repairs are estimated to exceed the program's previously established
budget or funding limitations, or when either the Community Development staff or Homeowner elect not to allow
rehabilitation or reconstruction of the home.
4. I understand that by accepting funding for rehabilitation / reconstruction of my property, I will be required to sign a deed
contract that will make me legally responsible for:
a. regular upkeep and maintenance of the home following rehabilitation / reconstruction;
b. keeping my home adequately insured as described in the Home Improvement Program Policies and Procedures
booklet;
C. keeping all my property taxes paid when due;
d. paying the loan payments in a timely manner.
5. I have reviewed the Home Improvement Program Policies and Procedures with Community Development staff and have
initialed all areas included in the detailed review. I have initialed each item on the attached checklist that was reviewed in
detail with me. I was provided an opportunity to ask any questions about the program, it's limitations, eligibility criteria, etc.,
regarding such items as contracts, minimum building standards and specifications, financial limits, type of loans, funding
sources contractor selection and payments, etc., prior to signing this Homeowner Certification and Agreement to Participate
in the Home Improvement Program.
6. 1 understand it is my responsibility to arrange access to the home for building contractors, inspectors, and workers performing
construction or repair services to the home. Following completion of the construction, the home will continue to be
accessible for completion of punch list items and warranty work. If reasonable and timely access is denied to a building
18
contractor or inspector who is attempting to make a good faith effort to make or inspect required repairs, I will become
responsible for completing the repairs at my expense.
7. I understand that the security of the property, household goods, and personal items is my responsibility and that I may be
required to move and/or store personal property at my expense. If personal property is damaged, displaced or lost during the
construction or inspection of the property, I will immediately report the situation to the Community Development staff, but it
will be my responsibility to pursue damages for any losses through my own insurance provider. 1 will complete photographic
and written inventory prior to the beginning of rehabilitation / reconstruction.
8. During rehabilitation / reconstruction, I will not touch, disturb, move, or otherwise affect, the construction areas, tools,
materials and/or equipment. I will make a reasonable effort to stay away from the construction zone.
9. I will provide all existing utilities for use by Building Contractor only as they relate to the rehabilitation / reconstruction of
the home. I am responsible for continuous maintenance and payment of existing utilities.
10. I will review each Building Contractor's Request for Payment and I will make a reasonable effort to inspect each item
Building Contractor submits for payment prior to approving the payment request. By signing the Building Contractor's
Request for Payment, I am verifying that to the best of my knowledge and belief each of the listed rehabilitation /
reconstruction items has been completed according to the required standards and specification. If I am not satisfied with a
particular item of repair that has been presented for payment, I may delete the items(s) until such repair is satisfactorily
completed. If the repair is completed according to standards and specifications but I refuse to approve the payment request, I
understand that I may be responsible for payment to Building Contractor for any lost time. Community Development staff
shall resolve any such conflicts.
11. Before approving final payment I will receive a Warranty from Building Contractor. If warranty work is required during the
warranty period, I will be responsible for contacting Building Contractor by telephone. If no contact is made by telephone, I
will send a certified letter (with a return receipt) to Building Contractor. If Building Contractor has not responded within 30
days, I will immediately report the situation to Community Development staff. I will provide Community Development staff
with copies of my receipts and letters supporting my attempt to contact Building Contractor. If warranty issues or other
complaints remain unresolved, I agree to adhere to the Home Improvement Program's Dispute Resolution Policy including
an informal conference and possibly, binding arbitration.
Homeowner's Certification
I/We certify that I/we have read and I/we understand this "Homeowner Certification and Participation Agreement. I/We certify
that, to the best of my/our knowledge, all required documents and materials I/we have completed and submitted to Community
Development staff for my/our Application for Assistance are true and correct. I/We certify that Contract Administrator has
explained to me/us, and I/we understand the benefit options available under the Home Improvement Program.
0 I/We choose to participate in the Home Improvement Program and to comply with all Program requirements.
I/We choose NOT to participate in the Home Improvement Program or to receive any services provided and/or funded
by the Program.
Signature of Homeowner
Date
Signature of Homeowner
Date
19
APPENDIX 4
TEMPORARY REHOUSING QUESTIONNAIRE AND AGREEMENT
Your participation for optional reconstruction assistance is voluntary. Reconstruction funds are limited therefore; the Program does not cover
costs necessary for household to relocate during reconstruction of the property. Please complete the following questionnaire. This
information will help our staff in determining if you will be eligible for optional reconstruction assistance.
1. I understand that costs will begin to incur that may include but are not limited to filing, platting, re-platting, title search, property surveys
and other costs deemed necessary, I understand I will be responsible for these costs, even though project may or may not be
completed.
Yes No
2. 1 understand that it is my responsibility to relocate my household, before the reconstruction and after the reconstruction is completed, and
that I am responsible for all costs involved to do so. I also understand that I must vacate permanently the currently occupied
substandard dwelling within 10 days notice by the City.
Yes No
3. 1 understand that as a result of reconstruction, my appraised property value, set by the Denton Central Appraisal, may increase
significantly from the amount at which it is currently valued.
Yes No
4. 1 understand that an increase in my property value may cause my property taxes to increase by a significant amount. I am financially
prepared to meet any increase.
Yes No
5. 1 understand that I am obligated to carry homeowner's insurance for the duration of the lien (20 years) that the City of Denton will have on
my property. I understand that I must request that my insurance company list the City of Denton as a "Certificate Holder" on my policy.
Yes No
6. 1 understand that my homeowner insurance premium will most likely increase as a result of the reconstruction. I am aware that my
insurance policy must cover the after-reconstruction appraised value of my property, I am financially prepared to meet this increase.
Yes No
7. 1 understand that I must take possession and occupy the replacement dwelling when the reconstruction is completed and the City
determines it to be ready for occupancy. I understand that I may be required to resign contracts.
Yes No
8. 1 understand that The City of Denton is limited in the amount of funds it can spend to reconstruct a property. I have been briefed on
these limits and understand that my eligibility for optional reconstruction assistance 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
This APPLICATION was completed by on . By signing below, I am
requesting that the City of Denton's Community Development to accept this as my application to be considered for optional reconstruction
assistance.
Applicant's Signature
Date
20
APPENDIX 5
SPACE & AMENITY ALLOWANCES
FOR RECONSTRUCTION ACTIVITIES
The City of Denton may provide replacement single-family modest, safe, energy-efficient, decent dwellings. An
EnergyStar® qualified home. Space and room limits for replacement housing are determined by household
need. Replacement housing will provide up to the following:
Provided Space
1 Kitchen 1 Dining Area or Kitchenette
1 Laundry Alcove 1 Food Pantry Closet and/or Cabinet
1 Coat Closet 1 Linen Closet
1 Living Area 2-3 Bedrooms*** W/Closets**
1 or 2 Bathrooms* 1 Attached (Non-Conditioned) Storage Area
Maximum Square F
2 Bedrooms 1 bath
2 Bedrooms 2 baths
3 Bedrooms 1 bath
3 Bedrooms 2 baths
4 Bedrooms 2 baths
Amenities
eet Allowed (Within 2 percent high or low
- 985 SF
-1040SF
-1100 SF
-1180 SF
-1225 SF (***must be approved)
1 Brick Mailbox
1 HVAC Unit (14-Seer AC)
1 Front Entry Door
1 50 gallon Water Heater
2-Car Driveway Space
Programmable Thermostat
1 Energy Star Refrigerator
ENERGY
STAR@
Qualified
Home /
Compared with standard tomes,
ENERGY STAR qualified homes use
substantially less energy for heating,
cooling, and water heating - delivering
in annual savings.
1 Ceiling fan per bedroom and 1 in Living Room
1 Front & 1 Rear Exterior Weatherproof Electrical Outlets
1 Rear or Side Entry Door
1 Front & 1 Rear Hose Bib
1 Attic Access Stairs
Standard lighting including exterior safety lights front and back
14 burner Gas or Electric Range/single Oven (appliances if needed)
Flooring: Owner chooses combination and placement of Carpet/Pad, Sheet Vinyl or Tile Vinyl Flooring -
maximum of one carpet and one vinyl choice per house.
Grass: Sod will be installed at a minimum of 5' wide around entire foundation/perimeter, 3' wide around
sidewalks and driveway. Season-appropriate seed will be spread on remainder of un-sod yard.
Bathroom: *A full bathroom may be made A.D.A, accessible to accommodate a physically handicapped
household member. Household may also select a 1/2 or 3/4 bath in place of a second full bath, if desired.
**Clothes closets will ideally, when possible, provide a minimum of 4'X 2' of space per bedroom.
21
***Determining Maximum Number of Bedrooms from household makeup: A household may select up to a 3
bedroom 2 bathroom house based on need, A fourth bedroom may be requested in writing when a household
believes there is a valid need for the additional space. The Community Development Administrator approves
requests on a case-by-case basis.
Under no circumstances will this program provide space exceeding that described above.
22
Appendix 6
Lead-Based Paint Hazard Control
Policy & Procedure
DEN
SERVICE
w~te-rr~v * ~ Ta~lC~sr
23
Lead-Based Paint Hazard Control IMALI bimm
Policy & Procedure
The purpose of this Policy & Procedure is to provide guidance during rehabilitation of properties
when lead-based paint has been identified as a hazard in homes occupied by low and moderate
income families with children less than 72 months (six years) of age. The policy/procedure
establishes standards, project timelines, etc., for eligible households receiving lead hazard
control work through the Home Improvement Program. This policy and procedure also
provides a mechanism for obtaining agreement for and approval of temporary relocation
provisions.
Please read the information in this policy/procedure in its entirety. If you agree with the
information established for this project as outlined below, please sign and date the last page of
this document and return it to the Community Development Department. Should you have any
questions or concerns regarding this policy, please feel free to call (940) 349-7726 and schedule
an appointment with staff.
General Policies
The following are general policies:
• Only properties that were built before 1978, occupied by families that are approved to
participate in the Home Improvement Program and have children under 72 months of age are
eligible for LHCG funds (when available). Lead hazards will be completed using Federal
CDBG and HOME funds when LHCG funds are not available.
• Pre-hazard blood lead testing for every child less than 72 months of age within 6 months
prior to the start of rehabilitation/lead remediation work is required. Blood lead testing must
be completed by a qualified medical agency. The child's Blood Lead test results do not need
to be provided, but documentation from the qualified medical agency must be provided
documenting the child(ren) has been tested.
• Funds for temporary relocation during project lead hazard control work are not provided.
Since the owner occupied rehabilitation programs are entirely voluntary, the Uniform
Relocation Act does not apply. (Relocation requirements during lead hazard control work for
elderly households may be waived by owners when no children live in or regularly visit the
property).
• All back up documentation in individual project files and available for review on request.
The files need to be maintained for the term of the loan.
Environmental Requirements:
Must comply with and meet all lead based paint regulations. Lead-based paint hazard reduction
techniques will be used when lead-based paint exceeds HUD's acceptable limits for lead content
in existing paint. The limits for lead content exceed HUD's limits when lead content exceeds 1
mg per cmz (one milligram per centimeter squared), or 5000 ppm (parts per million). The
reduction techniques used by this program are described and found in the U. S. Department of
Housing & Urban Development's publication, Guidelines for the Evaluation and Control of
Lead-Based Paint Hazards in Housing, issued June 1999
Page 24
APPENDIX 6
Inspection, Risk Assessment Testing, and Clearance Procedures:
All lead hazard evaluations will be conducted by risk assessors. Risk assessments may be
conducted either by staff or contracted through qualifying firms. Clearance tests for projects
may be conducted by clearance sampling technicians.
All lead hazard control methods will fall into the category of interim controls although some
activity may in fact permanently remove lead hazards. Rehabilitation Specialists will use
professional judgment and expertise in determining appropriate methods to address deficient
conditions based on recommendations from the risk assessment.
Homeowner Protection:
The Home Improvement Program requires that an Homeowner Protection Plan, includes all
household members, must be in effect before lead hazard control work can commence. Safety is
given first priority in determining these plans. Homeowner protection is mandatory and
designed to protect homeowner(s), members of the household, pets and personal belongings
during lead hazard control work. The attached Homeowner Protection Plan is specific to your
lead hazard control project and was developed based on the scope of work to be completed. This
Plan assures safe housing is available to the homeowner. These plans are the final decision and
responsibility of the Lead Abatement Project Designer. By signing and dating the Home
Improvement Relocation Approval page, you will be agreeing to the Homeowner Protection Plan
that is a part of this document:
Project Start Date:
Once the homeowner(s) has selected a contractor a Project Start Date must be established. This
date is determined through a cooperative effort and agreed upon by the contractor, homeowner(s)
and Community Development staff. The three factors that must be considered to set a Project
Start Date are:
First: The date the contractor can actually begin the project. Contractor is to include time
needed to meet the Three-day Right of Rescission requirement as well as any time needed to
prepare for the project such as, ordering materials needed that must be available on the date
the LHC work actually begins (windows, doors, etc.).
Second: The date the homeowner(s) has prepared for all requirements of the Temporary
Relocation Plans (as written above). This date must take into account all arrangements
needed to be made by owner (such as hotel reservations, packing, storage, if required, and
any other arrangements that must be made prior to the work beginning).
Third: The date City of Denton staff can have contracts ready for signing (including a date
all parties required to sign contracts will be available to sign)
All parties must give priority to reaching an acceptable Project Start Date. Once a Project
Start Date has been established, all parties will be notified of:
Project Completion Date:
The amount of time needed to complete a project is decided on a project-by-project basis but
usually fluctuates from between two days and two weeks. The contractor is required to provide a
set project completion date (or, provide the number of consecutive working days the project will
Page 25
APPENDIX 6
take to complete). The Lead Abatement Project Designer must approve this timeline. The
Project Completion Date will become part of the project contracts.
Clearance Testing Requirement:
Before homeowner(s) can return to the property, the property must pass: 1.) visual inspection; 2.)
dust wipe; and 3.) soil clearance tests. If clearance is not achieved on first testing results, the
relocation process must be prolonged to allow contractor time to achieve clearance levels (put
the levels here). Reaching clearance is the responsibility of the contractor; therefore, any
additional time required to meet clearance is the contractor's responsibility. If the Project
Completion Date must be extended because of a failed clearance test, liquidated damages will
be enforced for every day homeowner(s) cannot return to the property. The contractor will also
be responsible for lab fees, if retesting is required, and the cost of these fees will be deducted
from the contract amount.
Homeowner(s) will not be permitted to enter the worksite once the project has started for the
duration of the hazard reduction activities until such a time that clearance testing has passed all
requirements.
Moving and Storage:
Funds for temporary relocation during project rehabilitation/reconstruction are not provided. In
most cases, household goods will not have to be moved. In the event the Lead Abatement
Project Designer determines that some or all furniture and household goods must be moved out
of the property, the Home Improvement Program will notify homeowner(s).
If furniture needs to be moved: The homeowner(s) will be notified by Home Improvement
Program of the areas where work will be conducted. These areas will need to be readily
available to the contractor to begin working. If furniture needs to be moved, closets emptied,
shelves cleared etc., it is the responsibility of the homeowner(s) to relocate their possessions to
assist the contractors timely and efficient work schedule. The homeowner(s) is responsible for
packing and storing valuable possessions. Neither the contractor nor the City of Denton is
responsible for missing or damaged property that has not been properly packed and stored by the
homeowner(s).
It is advisable that homeowner(s) make a checklist of all valuables stored.
Steps for relocating a family:
A draft of relocation plan will be made by the Home Improvement Program. Contractor
will submit plan of work schedule stressing all exterior work to be completed.
2. Home Improvement Program informs homeowner(s) of abatement commencement,
preferably 10 days before.
Home Improvement Program starts paperwork and will advise and consult regarding
extended period of relocation.
4. Home Improvement Program will inform or provide the family with:
a. Information of time span required for the relocation.
Page 26
APPENDIX 6
b. Everything they should take that they will need for the maximum number of days
they will be relocated.
C. All pets should be relocated or boarded.
7. Homeowner(s) will be made responsible for insuring that all household members are
relocated during lead hazard control work and the house be made available to begin
project. Homeowner(s) will provide keys to the contractor.
Home Improvement Program will inform Homeowner(s) of final clearance. If house
does not pass clearance, then Home Improvement Program will inform property
homeowner(s).
Page 27
APPENDIX 6
Home Improvement Program
Lead-Based Paint Hazard Control
Homeowner Protection Plan
Includes all household members / pets / household goods and belongings
Homeowner(s) Name:
Project Address:
Homeowner Protection:
Pet Protection (If Applicable):
Personal Belongings/Household Goods Protection:
Other Instructions required for this project:
Signed:
Lead Abatement Project
Designer Name Printed:.
1.) Contract Signing Date:
2.) Project Start Date:
3.) Project Completion Date:
NOTE One: If for any reason any of the dates established above cannot be met after they have been agreed
upon, the party responsible for providing that date must notify a Home Improvement Program
staff immediately to provide an alternate date. This action may cause further delays. All
Date Plan Developed
Page 28
APPENDIX 6
other parties will be notified if the established date must be changed and must agree to a new
date.
APPENDIX 6
Page 29
Home Improvement Program
Project Relocation Plan Approval
Date Policy/Procedure Received:
Project Address:
Homeowner Names :
Homeowner Address:
city State: Zip:
Homeowner Phone:
Contractor : City State: Zip:
Contractor Address: Contractor Phone:
By my/our signature(s) below, I/we acknowledge and agree to the terms as written in the Lead-
Based Paint Hazard Control Policy & Procedure and the Homeowner Protection Plan. I/We
understand that it is my responsibility to approve specifications; review the bids and select a
contractor (subject to Home Improvement Program approval), to sign the construction contracts
and change orders, and to approve the payouts.
Homeowner Signature
Homeowner Signature
Date
Homeowner Signature
Date
Date
Community Development staff Signature
City of Denton
Community Development Department
601 E. Hickory, Suite B
Denton, TX 76205
940-349-7726
Page 30
APPENDIX 6
Project Relocation Plan Approval
Page 2
Steps for relocating a family:
1. A draft of relocation plan will be made by the Home Improvement Program. Contractor
will submit plan of work schedule stressing all exterior work to be completed.
2. Home Improvement Program informs property homeowner(s) of abatement
commencement, preferably 10 days before.
3. Home Improvement Program starts paperwork and will advise and consult regarding
extended period of relocation.
4. Home Improvement Program will inform or provide the family with:
a. Information of time span required for the relocation.
b. Everything they should take that they will need for the maximum number of days
they will be relocated.
C. All pets should be relocated or boarded.
7. Homeowner(s) will be made responsible for insuring that all household members, pets
and belongings are protected during lead hazard control work by complying with the
"Homeowner Protection and Project Relocation Plans" and agree to make the house
available to contractor to begin project. Homeowner(s) will provide keys, as required, to
the contractor.
8. Home Improvement Program will inform Homeowner(s) of final clearance. If house
does not pass clearance, then Home Improvement Program will inform property
homeowner(s).
Page 31
APPENDIX 6
City of Denton Community Development
Home Improvement Program
601 E. Hickory, suite B, Denton, TX 76205
HOMEOWNER'S SERVICE AGREEMENT
1/we, (Owner Name), hereinafter referred to as Owner, have applied for assistance from the Home Improvement
Program to complete a rehab and will include lead hazard reduction and controls on my property. If this assistance is
granted, I understand that the Home Improvement Program will be inspecting my property, acting as Home Improvement
Program's technical agent and monitor of the lead hazard control project for the property, which is located at Property
Address.
Owner's Responsibilities
I understand that even though Home Improvement Program provides a deferred loan*, it is my responsibility to
approve specifications; review the bids and select a contractor (subject to Home Improvement Program approval),
to sign the construction contracts and change orders, and to approve the payouts.
I acknowledge that I have been advised that I should inspect the work as frequently as possible, and discuss with the
contractor, or Home Improvement Program personnel any difficulties or poor workmanship observed. I understand that
once materials are in place that cost of repair or replacement is substantial.
Owner Protection and Temporary Relocation During Lead Hazard Reduction
In most jobs that require lead hazard reduction, our agency requires appropriate actions to be taken to protect owner(s)
and all members of the household from lead-based paint hazards. In those cases, owner(s) or no member of the
household may not enter the worksite during the lead hazard reduction activities. Re-entry is permitted only after such
activities are completed and the unit has passed a clearance examination. Owners of the unit do not have to be relocated
if rehab work will not disturb lead-based paint or create lead-contaminated dust; hazard reduction activities can be
completed within one 8 hour daytime period and the worksite is contained to prevent safety, health or environmental
hazards; exterior-only work is being performed where the windows, doors, ventilation intakes and other openings near
the worksite are sealed during hazard reduction activities and cleaned afterward, allowing for a lead free entry to be
maintained; hazard reduction activities will be completed within 5 calendar days and the work area is sealed, the area
within IO feet of the containment area is cleaned each day, owner(s) or members of the household have safe access to
sleeping areas, bathroom and kitchen facilities in the same housing unit or in another convenient location; and
owner(s)or members of the household are not permitted into the worksites until after clearance has been achieved.
If occupied units are to undergo more extensive lead hazard reduction activities, the owner(s) ) or members of the
household must be temporarily relocated. Most often, furniture and owner's or members of the household's belongings
can be covered and sealed with protective plastic sheeting, although storage of major furniture and removal of all small
furnishings during the hazardous materials reduction work may sometimes be necessary. The owner(s) is responsible for
carefully packing all breakables; removing all clothing from closets, etc. During the hazard reduction work, only workers
trained in lead hazard reduction may enter the work site. This means that owner(s) and members of the household are
not permitted to return to the work site during the day or at night. If you have special needs to re-enter the site, please
contact your rehab specialist. Only when the unit has been cleaned to the federally- mandated standards and passed a
clearance examination is it safe and permissible to return to your home. The rehab specialist will notify you with an
Authorization for Re-Occupancy. Sometimes the jobs are completed in stages, with the lead hazard reduction work
occurring first and the other renovation work following. In these cases interim dust lead clearance must be obtained
prior to re-occupancy by the owner(s) or members of the household and other non-lead related rehabilitation workers.
Final lead dust clearance must be repeated following the rehabilitation work to verify that the residence is free of lead
hazards. (Note: HUD has advised that relocation of elderly owners is not typically required, so long as complete
disclosure of the nature of the work is provided and informed consent of the elderly owner(s) is obtained before
commencement of the work.)
Home Improvement Program's Role
Page 32
APPENDIX 6
A. I understand that Home Improvement Program provides work-in-progress inspections to me for their protection.
However, these services are not a guarantee of any type, and do not make Home Improvement Program responsible
for the quality of the work, or responsible for any contractor or worker's performance.
C. I understand that the staff of Home Improvement Program cannot be personally available for all inspections of each
segment of the work perforned on the construction site and that both Home Improvement Program and its employees,
members, officers, and directors will reasonably rely on the competence and skill of each individual contractor as is
normal in the course of such business negotiations, transactions, and execution of the contract.
Home Improvement Program's Emergency Authority
I authorize the staff of Home Improvement Program to issue emergency orders and/or instructions in the event that the
Residential Construction Specialist is available to observe the work in progress, and can anticipate that without authority
to issue such instructions, work will be done which will substantially alter the intentions of the homeowner(s), injure the
property or violate the specifications of the contact.
Upon the issuance of such orders or instructions, Home Improvement Program's Residential Construction Specialist will
contact the general contractor or subcontractor most directly responsible for the work in question and the homeowner(s) as
quickly as possible, and all parties will examine and approve or re-negotiate the work in question before the job proceeds.
General Provisions
A. I further agree to hold hannless and indemnify Home Improvement Program and its employees, members, officers,
and directors, in connection with acts performed by them which would reasonably be associated with consultation,
technical advice, financial counseling, loan processing, property inspections, and other related activities.
B. I authorize the staff of Home Improvement Program to obtain or provide specific reports, such as personal credit
reports, property title and tax searches, building code inspection reports, property appraisals, repair specifications,
cost estimates, contractors bids (and such other reports which said staff deems necessary to perform its functions).
C. Whenever the pronouns "I," "my," "we" are used in this agreement they shall mean "we," "our," and "us"
respectively, if more than one owner signs below.
Homeowner's Signature
Homeowner's Signature
Date
Date
Page 33
APPENDIX 6