2011-186s:\legallour documents\ordinances\1112o11 draft hip ordinance.doc
ORDINANCE NO. 2411-186
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 1N EXCESS OF $50,000 FOR PROJECTS MEETING PROGRAM
GUIDELINES AND CRITERIA; AND PROVIDING FOR AN EFFECTNE 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 2011 Program year; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The City Council approves the 2011 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 E�iibit "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 ���(��c%U , 2011.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
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TABLE OF CONTENTS
INTRODUCTION....................................................................................................... 4
HomeImprovement Program ...................................................................................... 5
Description of General Program Procedures ............................................................... 5
I. PURPOSE ...........................................................................................................5
II. DESIGNATED AUTHORITY .......................................................................... 5
III. ELIGIBILITY REQUIREMENTS : ................................................................... 5
IV. APPLICATION PROCESSING ........................................................................ 9
V. SELECTION OF RECIPIENTS FORASSISTANCE ....................................10
VI. WAIVERS AND APPEALS PROVISION .....................................................11
VII. FINANCIAL ASSISTANCE ...........................................................................11
VIII. CONTRACT REQUIREMENTS ....................................................................12
IX. PROJECT FEASIBILITY CRITERIA ............................................................14
X. PROJECT COST LIMITS ...............................................................................15
XI. ALLOWABLE EXPENSES ............................................................................16
XII. PROGRAM ACTIVITY OPTIONS ................................................................16
A. Owner-Occupied Rehabilitation .......................................................17
B. Optional Reconstruction ...................................................................17
XIII. CONTRACTOR SELECTION AND PROJECT MONITORING .................17
XIV. PAYMENTS TO CONTRACTOR ..................................................................20
XV. CONTRACTOR DEBARMENT ..................................................................... 20
APPENDICES LIST .................................................................................................22
APPENDIX 1 Qualifying Income Limits for Federally Assisted Programs ...23 & 24
APPENDIX 2 Targeted Neighborhoods Map ...........................................................25
APPENDIX 3 HOME Certification and Participation Agreement .......................... 26
APPENDIX 4 Temporary Rehousing Questionnaire and Agreement ...................... 30
APPENDIX 5 Space & Amenity Allowances For Reconstruction Activities.......... 32
APPENDIX 6 LBP Hazard Control Relocation Policy and Procedure .................... 34
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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 (HLJD), 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 proj ect 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 (Office)
(940) 349-7753 (Fax)
Located at City Hall East — 2nd Floor
Enter Building's West door on Railroad Street
ADA Accessible
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Home Improvement Program
Description of General Program Procedures
I. 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 proj ect
completion.
B. The Cornmunity 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.
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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.
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):
Household Size
1
2
3
4
5
6
7
8
Rehabilitation 1
Reconstruction
80% of the AM I
Maximum Income Limit
$38,300
$43,750
$49,200
$54,650
$59,050
$63,400
$67,800
$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.
Page 6
NOTE 2: Household income is calculated based on HUD's Technical
Guide for Determining Income and Allowances for the HOME P�og�am
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.
6. 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 current and projected 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.lO.a. below.
NOTE: The City of Denton reserves the right to request an independent
market analysis.
B. 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).
Page 7
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.
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
INSUR.ANCE 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.
b. A property that received rehabilitation assistance after August 1996
when the total dollar amount spent was above $40,000 is not eligible
for additional assistance from this program.
. .. .
c. A property that received rehabilitation assistance before August 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.
3. 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 FoNms 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.
Any intentionally falsified information will cause the application to be
rejected and the applicant will not be allowed to reapply. Failure to disclose
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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 the
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 fmal 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 availabilitv 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.
Page 10
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 iinal 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. Citv of Denton Funds: The City of Denton will fund the remaining project
costs using Federal HITD 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
RehabilitationBelow $10,000
RehabilitationBetween $10,000 - $25,000
Rehabilitation/Above $25,000 - $45,000
Reconstruction or Rehabilitation/Above $45,000
Term
60 months (5 years)
120 months (10 years)
180 months (15 years)
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 �atios and description of Payable and Defe��ed loans.
Page 11
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;5.) Failure to pay utility bills 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. Sixty-five (65) 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 heir(s) decides a family member will permanently 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
Page 12
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 1.) gain simple fee title ownership to the
property; 2.) complete the application process providing household income
and backup documentation, when an heir will become owner; and, 3.) sign a
Modification of Note and Lien.
NOTE: Invoicing on the balance due will resume in three (3) months from
"event" date unless other arrangements axe requested by heir(s) and approved
by the Community Development Administrator.
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:
- 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
areaAfter 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.
F. 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
Page 13
income. This evaluation may result in a decrease in the payable portion of the
note. The loss of income must be from an income-ea�ning household
member(s) whose income was used in detepmining the o�iginal 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 IV, A��lication Processin� - 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 Modif cation 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).
Page 14
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 cm2 (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 Housin�, 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?
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 proj ect 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 may be available to comply with historical requirements. When
rehabilitation includes either lead-based paint and/or historical work, a
Page 15
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 MII�IIMUM 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.
Page 16
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.
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 proj ect's progress
routinely to ensure compliance with City codes and proj ect 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
Page 17
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.
Owner must submit the contractor's bid proposal to the Communitv Development
at 601 E. Hickory Street, Suite B Denton, TX 76205.
Page 18
The Community Development staff will review the proposal to verify that:
1. 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
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
Page 19
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 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.
Page 20
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 proj ect appropriately
and/or by not submitting affidavits of payment signed by all
subcontractors.
7. Failure to obtain proper permits for work in progress.
8. Failure to treat applicants with respect and courtesy.
9. 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
writin� to the 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.
Page 21
Appendix 1
Appendix 2
Appendix 3
Appendix 4
Appendix 5
Appendix 6
APPENDICES
Qualifying Income Limits and Ranges for the City of Denton's
Federally Assisted Programs
Target Neighborhoods Map
Homeowner HOME Certification and Agreement to Participate in the
Home Improvement Program Owner Occupied Assistance
Temporary Rehousing Questionnaire and Agreement
Space & Amenity Allowances For Reconstruction Activities
Lead Based Paint Hazard Control Relocation Policy and Procedure
Page 22
APPENDIX 1
FY 2011/2012
City of Denton Community Development Department
Qualifying Income Limits for Federally Assisted Programs
Rehabilitation and Optional Reconstruction Eligible Income
R1tl j@S (The income limits are set by HUD - adjusted on HUD's effective dates)
2-Part *60% Payable I *40% Payable ! *25% Payable / *15% Payable 1
Loan 40% Deferred 60% Deferred 75% Deferred 85% Deferred
Ratio*
Owner 1% of Total Project .75% of Total .5% of Total Project ,25°/o of Total
Contri- Cost Project Cost Cost Project Cost
bution
Income Moderate Low Very-Low Extremely-Low
Range g0% AMI - 65% 65% AMI - 50% 50% AMI - 30% <_30%
Family AMI AMI AMI AMI
Size
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
Appendix 1 Page 23
*In this two-part loan:
Appendix 1 (Continued)
Part I: Pavable Loan is based on a percentage of the total City-paid project cost (see
Section VII.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 II: 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 age 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.
Reuortable Income: Gross income for all household members aged 18 and above
must be included to determine household's eligibility to receive assistance; however,
some household members' incomes may be excluded when 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 26
and/or children aged 22 up to 26 who are full or part-time students. Incomes for
household members aged 26 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:
11/1/2010
0-BDR=$100,742 1-BDR=$115,484 2-BDR=$140,429 3-BDR=$181,668
4-BDR=$199,417
95 Percent of the 2007 Single Family Mortgage Limit for Denton (�184,028) _
$174,827 Effective: 4/15/2010
Appendix 1 Page 24
APPENDIX 2
City of Denton, Texas
Targeted Neighborhoods Map
Appendix 2 Page 25
APPENDIX 3
City of Denton Community Development
Home Improvement Program
�
�
Homeowner HOME Certiiication and Participation
Community Development
staff:
Homeowner:
Homeowner's Property
Address:
Mailin� Address (if different from above):
Phone: I Mobile: I Fax: I Email:
1. I certify that I, 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. REHABILITATIDN — 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.
Appendix 3 Page 26
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 Homeowne� Ce�tification and AgNeement to PaNticipate in the
Home Improvement Program.
6. I 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 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.
Appendix 3 Page 27
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. I 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.
Appendix 3 Page 28
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.
0 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
Signature of Homeowner
Appendix 3 Page 29
Date
Date
APPEN DIX 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. I 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. I 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. I 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, I 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
Appendix 4 Page 30
6. I 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. I 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. I 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 (Name) on
(Date). By signing below, I am requesting that the City
of Denton Community Development Division accept this as my application to be considered
for optional reconstruction assistance.
Applicant's Signature
Appendix 4 Page 31
Date
APPENDIX 5
SPACE & AMENITY ALLOWANCES
FOR RECONSTRUCTION ACTIVITIES
The City of Denton may provide replacement single-family modest, safe, energy-
efficient, decent dwellings. An EnergyStarO 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 Laundry Alcove
1 Coat Closet
1 Living Area
1 or 2 Bathrooms*
1 Dining Area or Kitchenette
1 Food Pantry Closet and/or
Cabinet
1 Linen Closet
2-3 Bedrooms*** W/Closets**
1 Attached (Non-Conditioned)
Storage Area
ENERGY
STARO
Qualified
Home
ConipaYed witlz sta�Zdard
homes, ENERGYSTAR
qualified homes use
substa�ztially less energy
for /ieating, cooling, an�l
water l�eating -
Maximum Square Feet Allowed (Within 2°/a +/-) tlelivering in a�znual
2 Bedrooms 1 bath -1000 SF S�v"'gs.
2 Bedrooms 2 baths -1080SF
3 Bedrooms 1 bath -1150 SF
3 Bedrooms 2 baths -1200 SF
4 Bedrooms 2 baths -1250 SF (***must be approved)
Amenities
1 Brick Mailbox 1 Ceiling fan per bedroom and 1 in Living Room
1 HVAC Unit (16-Seer AC) 1 Front & 1 Rear Exterior Weatherproof Electrical
Outlets
1 Front Entry Door 1 Rear or Side Entry Door
1 50 gallon Water Heater 1 Front, 1side& 1 Rear Hose Bibb
2-Car Driveway Space 1 Attic Access Stairs
Programmable Thermostat Standard lighting including exterior safety lights front
and back
1 Energy Star Refrigerator 1 4 burner Gas or Electric Range/single Oven
(appliances if needed)
Appendix 5 Page 32
Floorin : 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
foundationlperimeter, 3' wide around sidevualks and driveway. Season-
appropriate seed will be spread on remainder of un-sod yard.
*Bathroom: A full bathroom may be made accessible to accommodate
physically handicapped household member(s). Household may also select a 112
or 314 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.
***Determininq 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.
Appendix 5 Page 33
Appendix 6
DEN
T �
.
ea - ase aln
azar on ro
.
o lc roce ure
Lead-Based Paint Hazard Control
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
Appendix 6 Page 34
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
Prog�am. 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 level testing for every child less than 72
months of age within 6 months prior to the start of rehabilitationllead
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).
Appendix 6 Page 35
• 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 cm2 (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
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 P�ogram 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
Appendix 6 Page 36
plans are the final decision and responsibility of the Lead Abatement
Proj ect 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
Appendix 6 Page 37
date (or, provide the number of consecutive working days the proj ect
will 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
Appendix 6 Page 3 8
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.
Steqs for relocating a family:
1. A draft of relocation plan will be made by the Home Imp�ovement
PYOgram. Contractor will submit plan of work schedule stressing
all exterior work to be completed.
2. Home Improvement Prog�am informs homeowner(s) of abatement
commencement, preferably 10 days before.
3. Home Improvement P�og�am starts paperwork and will advise
and consult regarding extended period of relocation.
4. Home Improvement PYOgram 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 are relocated during lead hazard control work
and the house be made available to begin project. Homeowner(s)
will provide keys 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).
Appendix 6 Page 39
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 proj ect:
Signed:
Lead Abatement Project
Designer Name Printed:.
Appendix 6 Page 40
Date Plan Developed
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 other parties will be notified if
the established date must be changed and must agree to a new date.
Appendix 6 Page 41
Home Improvement Program
Project Relocation Plan Approval
Date Policy/Procedure Received:
Project Address:
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
Date
Homeowner Signature
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
Appendix 6 Page 42
Proj ect Relocation Plan Approval
Page 2
Steps for relocatin� a famil_y:
1. A draft of relocation plan will be made by the Home ImpYOVement
P�ogram. Contractor will submit plan of work schedule stressing all
exterior work to be completed.
2. Home Improvement P�og�am informs property homeowner(s) of
abatement commencement, preferably 10 days before.
3. Home Imp�ovement P�og�am starts paperwork and will advise and
consult regarding extended period of relocation.
4. Home Improvement P�ogram 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 Proj ect
Relocation Plans" and agree to make the house available to contractor to
begin proj ect. Homeowner(s) will provide keys, as required, to the
contractor.
8. Home Improvement Prog�am will inform Homeowner(s) of final
clearance. If house does not pass clearance, then Home Imp�ovement
Program will inform property homeowner(s).
Appendix 6 Page 43
City of Denton Community Development
Home Improvement Program
601 E. Hickory, suite B, Denton, TX 76205
HOMEOWNER'S SERVICE AGREEMENT
I/we, (Owner Name), hereinafter refe��ed to as Owne�^, have applied fo� assistance
from the Home Improvement Prog�am to complete a rehab and will include lead
haza�d reduction and controls on my prope�ty. If this assistance is granted, I
unde�stand that the Home Improvement P�ogram will be inspecting my propeNty,
acting as Home Imp�ovement Prog�ayn's technical agent and monitor of the lead
hazard control pNOject for the p�operty, which is located at P�ope�tV AddYess.
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.
OwneY Protection and TemporaYy Relocation During Lead Hazard Reduction
In most jobs that requiNe lead haza�d reduction, ou� agency �equi�es app�op�iate
actions to be taken to p�otect owne�(s) and all membe�s of the household from lead-
based paint hazaNds. In those cases, owner(s) o� no membe� of the household ynay
not ente� the wo�ksite du�ing the lead hazard �eduction activities. Re-entry is
permitted only afte� such activities a�e completed and the unit has passed a clea�ance
examination. Owne�s of the unit do not have to be �elocated if rehab wo�k will not
disturb lead-based paint or c�eate lead-contaminated dust; haza�d �eduction
activities can be completed within one 8 hour daytime pe�iod and the worksite is
contained to p�event safety, health o� envi�onmental hazaNds; exte�ior-only wo�k is
being pe�fo�med whe�e the windows, doors, ventilation intakes and other openings
neaN the wo�ksite are sealed du�ing hazard reduction activities and cleaned
aftef^ward, allowing fo� a lead free ent�y to be maintained; haza�^d reduction activities
will be completed within 5 calendar days and the work area is sealed, the area within
10 feet of the containment a�ea is cleaned each day, owne�(s) or membe�s of the
household have safe access to sleeping aNeas, bath�oom and kitchen facilities in the
Appendix 6 Page 44
same housing unit o� in another convenient location; and owne�(s)o� members of the
household a�e not pe�mitted into the worksites until afteN clea�ance has been
achieved.
If occupied units a�e to undergo mo�^e extensive lead haza�d reduction activities, the
owner(s) or members of the household must be tempo�a�ily relocated. Most often,
furnitu�e and owner's o�^ membe�s of the household's belongings can be covered and
sealed with p�otective plastic sheeting, although sto�age of majo� fu�niture and
removal of all small fu�nishings during the haza�dous mate�ials reduction woNk may
sometimes be necessa�y. The owne�(s) is �esponsible fo� ca�efully packing all
b�eakables; removing all clothing from closets, etc. DuNing the haza�d �eduction
work, only worke�s t�ained in lead hazard reduction may ente� the wo�k site. This
means that owne�(s) and membe�s of the household a�e not pe�mitted to �etuNn to the
wo�k site du�ing the day or at night. If you have special needs to �^e-enter the site,
please contact you� �ehab specialist. Only when the unit has been cleaned to the
federally- mandated standards and passed a clea�ance exaynination is it safe and
permissible to retu�n to your home. The �ehab specialist will notify you with an
Authorization for Re-Occupancy. Sometimes the jobs a�e completed in stages, with
the lead haza�^d Neduction wo�k occu��ing first and the othe� �enovation woNk
following. In these cases interim dust lead clea�ance must be obtained pNio� to �e-
occupancy by the owne�(s) o� members of the household and other non-lead related
rehabilitation wo�kers. Final lead dust clearance must be �epeated following the
rehabilitation work to ve�ify that the �esidence is fNee of lead hazards. (Note: HUD
has advised that �elocation of elderly owneNS is not typically requi�ed, so long as
complete disclosure of the natuNe of the work is p�ovided and infoNmed consent of the
elde�ly owne�(s) is obtained before commencement of the woNk.)
Home Improvement Pro�ram's Role
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 performed 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.
Appendix 6 Page 45
Home Improvement Pro�ram'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 harmless 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," "OUP," a11C� "US" respectively, if more than one owner signs below.
Homeowner's Signature
Homeowner's Signature
Appendix 6 Page 46
Date
Date
I
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COMMUNITY DEVELOPMENT DIVISION
940-349-7726
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