2013-296sAlegal \our documents \ordinances \13\2013 edbg hip ordinance.dou
ORDINANCE NO. 2013-296
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 2013 Program year; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The City Council approves the 2013 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 L'5 day of ��._.a , 2013.
_mm
MARK A l3[Jl0ZO'j 1 I IS, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
'M 1
BY. r
4.,
APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
BY:w
Page 2 of 2
Exhibit A
2013
Home Improvement
Program Guidelines
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Available in Spanish 1
Disponible en Espanol la
Effective Date: 10101/2013
K�1�86 C71t�G61NN�1�`1f C }F'�IN"(yPl{ ik1�11rNY
Applicants) Is Subject To Any
Guideline Changes Prior to
Contract Execution
Page 2
TABLE OF CONTENTS
INTRODUCTION............ ...... ......... .......... ........ ......... . ............................... 4
Nnme Imnrovement Program .. ................................ ... ........... ., ,., .....,., ..,,,..... ......,. ,,.,,.,.. ..,.,,,,,.,.,..... ,.............5
Description of General Program Procedures.. .......... ,....,............ ...,, ,......,, ......,,. ..,,,,,, ,....,.......5
I. PURPOSE ................. ............................... ......... .............. ... ..............................w ,. ,,.........................,,,5
II. DESIGNATED AUTHORITY ........ ............................... ............ ............. .. ................. .......................5
III. ELIGIBILITY REQUIREMENTS: ................. __ .... __ ............. ........5
IV. APPLICATION PROCESSING ....... ............................... ..............w..,.. .,..........,,.., ...........,..M.,, ..,,.,,..,...9
V. SELECTION OF RECIPIENTS FOR ASSISTANCE., .... ........ ....... ..... ........ _'
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........ ... ..... ................ . ....... ........ ........ ............... I, 7
B. Optional Reconstruction ........., ............ ............ .......................... 17
XIII. CONTRACTOR SELECTION AND PROJECT MONITORING—_- ............... n...,.. .,,,............,...,........17
XIV. PAYMENTS TO CONTRACTOR ............................ ......................., ,...,.,....... ......,..,.. ,,....... ...,.......20
XV. CONTRACTOR DEBARMENT ................ ................ ... ............... ................ .... ......... .......... .........20
APPENDICESLIST ....... .................. ........ ............................... . ........ ___ ................. . . ................... ..........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 .................... u.,.,. ......,.,....,.,,.,..,,...,..32
APPENDIX 6 LBP Hazard Control Relocation Policy and Procedure .................................... ............... „..,....,.....34
am
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 (Office)
(940) 349 -7753 (Fax)
Located at City Hall East — 2 °d Floor
Enter Building's West door on Railroad Street
ADA/EOE /ADEA
Texas State Relay (telephone device for the deaf): TDD (800) 735 -2989
F,ilti.:I:Mh HO4:,t INO
OPPOJ TUNlT`r"
Page 4
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 HUD regulations 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.
Page 5
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
12/2012):
Rehabilitation / Reconstruction
80% of the AMI
Household Size Maximum Income Limit
1 $37,800
2 $43,200
3 $48,600
4 $54,000
5 $58,350
6 $62,650
7 $67,000
8 $71,300
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.
6. Must not have any active levy or judgment against applicant(s) or the property.
7. 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
GreenPath Debt Solutions, 723 South I35E, Suite 210, Denton, TX 76205,
ww.greenpath.com /home.htm or other debt management companies. Note: Debt management
will be recertified prior to signing contracts.
8. Must demonstrate that current and projected income exceeds projected housing expenses and
would allow the applicant to maintain the dwelling.
9. Homeowner may be required to provide owner contribution toward project cost (see Section
VII.A.).
10. Pre - existing mortgage note balance cannot exceed 80 percent of the property's after appraised
value for rehabilitation and 70 percent of the property's after appraised value for
reconstruction.
Page 6
11. See "household" guideline at section III.B.1O.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).
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 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 housing unit.
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).
Page 7
2. Property is occupied by the owner and is their principal residence.
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 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, they 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 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 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 based on the following:
1. Households assisted. Assistance will be provided 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.
2. Funding availability. 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.
3. Funding available for reconstructions. Annual (CD program year) HIP funding will assist a
maximum of two reconstructions. All other funding available will be used for rehabilitation of
Page 8
existing units. However, if no housing units on the waiting list are viable rehabilitation projects,
additional reconstructions may be necessary to meet Federal expenditure requirements.
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.
C. When a home requires reconstruction and the applicant has a Denton Central Appraisal District
"Over 65" exemption, staff will place this project in a position to begin that ensures it can be
demolished and reconstructed within the same calendar year in order to preserve the exemption. In
some instances, that may require a delay in assisting by three or four months.
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 / Proiect 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
Page 9
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:
I. 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 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 are 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:
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
Page 10
protects Beneficiary with a standard mortgage clause
provides flood insurance at any time property is in a flood hazard area.
b. 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.
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 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 the 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 IV,
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 .._ .l_Racarl pant I4a wrdc In I?ouciie -, issued June 1995..
�o„ uat... and Contr ^l of T Pa Y .._ _.. ...I
Page 11
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 project must meet all of the following tests to be considered feasible to rehabilitate.
Projects not feasible fof the rehabilitation activity may be eligible for reconstruction and must meet
the cost criteria in items 2 and 3 of this section.
Rehabilitation: 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 project bid is limited to
a maximum of $80,000, plus 10% for potential change orders.
2. Reconstruction: Bids submitted contractors must be reasonable and must not exceed more
than 5 percent of Community Development staff's cost estimate.
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 1).
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.
Page 12
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.
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 to 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
Page 13
(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 NO lm_SIGN AM' A SRI- J?MT7°NT WITH 1 "I IF COMIRA °'1'O .
pit � Q � Nmgpilient at �" 01 1. o, i 1 ic,kcrry
Owner must submit the contractor's bid proposal to the i""oal,l�ml��az � w..
Street, Suite B Denton, TX 76205.
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,
Page 14
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 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:
Page 15
I . 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.
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 writing 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 16
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
Page 17
APPENDIX 1
FY 2013/2014
City of Denton
Community Development
Division
Qualifying Income
Limits for Federally
Assisted Programs
Rehabilitation and Optional Reconstruction � - .- ......
ruction Eligible Income Ranges
NE
The income limits
are set to HUD - adjusted on HUD's effe ctive dates
2 -Part Loan
NONE=
*60% Payable /
�. ... ...._ ��_
*40% Payable /
*25% Payable /
.......�.�..........
*15% Payable /
Ratio*
40% Deferred
60% Deferred
75% Deferred �
85% Deferred -
Ow er
n
1 % of Total �
.75% of Total
...5 % of Total
.25% of Total
Contribution
Project Cost
Project Cost
ect Cost
Project
Project Cost
Income Ranqe
Moderate
Low
- Low
Very-Low
Extremely -Low
Family Size
80% AMI - 65% AMI
65% AMI - 50% AMI
50% AMI - 30% AMI
_30%
AMI
1
$37,800 - $31,901
$31,900 - $24,551
$24,550 - $14,751
$14,750 or Below
2
$43,200 - $36,451
$36,450 - $28,051
$28,050 - $16,851
$16,850 or Below
3
$48,600- $41,001
$41,000 - $31,551
$31,550 - $18,951
$18,950 or Below
4
$54,000 - $45,551
$45,550 - $35,051
$35,050 - $21,051
$21,050 or Below
5
$58,350 - $49,201
$49,200 - $37,901
$37,900 - $22,751
$22,750 or Below
6
$62,650 - $52,851
$52,850 - $40,701
$40,700 - $24,451
$24,450 or Below
7
$67,000 - $56,501
$56,500 - $43,501
$43,500 - $26,151
$26,150 or Below
8
$71,300 - $60,151
$60,150 - $46,301
$46,300 - 27,801
$27,800 or Below
Appendix 1 Page 1
*In this two -part loan: Appendix I (Continued)
Part I: Payable 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 half of the payable loan percentage (rounded
down). The reduced amount will be added to the deferred portion of the loan.
Reportable 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 ages 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: 12/2012
Appendix 1 Page 19
APPENDIX 2
City of Denton, Texas
Targeted Neighborhoods Map
Appendix 2 Page 20
APPENDIX 3
lb"t"amm Home Improvement Program
DENTON HOME Beneficiary Written Agreement
Homeowner Name(s) & Prooerty Address:
As stated in 24 CFR 92.504, each recipient of HOME funds must enter into a written agreement with every entity that benefits
from the use of the awarded funds. This HOME Investment Partnerships Program Home Improvement Agreement
( "Agreement ") is entered into by the City of Denton, Texas, ( "City ") and Homeowner Name (hereinafter called "Homeowner"
whether one or more persons).
This Agreement applies only to the Homeowner and dwelling unit ( "Property "), as identified above. This Agreement describes
the HOME Program rules that pertain to the assistance provided through the City of Denton's Home Improvement Program. By
initialing the items listed below, Homeowner confirms that each item has been read and Homeowner understands and agrees
to comply with each item, as applicable;
1. USE OF HOME PROGRAM FUNDING
The City will provide HOME Program funding in the estimated amount of $.00 to assist with the cost to
rehabilitate /reconstruct the Homeowner's Property as listed above,
❑ Rehabilitation of an owner - occupied home;
p Reconstruction of an owner - occupied home on an existing site
At the time Homeowner is approved for HOME Program assistance, Homeowner has an ownership interest in and
occupies the Property to be rehabilitated /reconstructed as his/her principal residence. Homeowner agrees to
continue 'to occupy the Property as his /her principal residence for 5 -20 years from the date the
rehabilitation /reconstruction work is completed. This is called the lien period.
At the time Homeowner is approved for the HOME Program assistance, the Homeowner qualifies as a low- income
household with a gross household income that does not exceed 80% of the area median income as established by
the U.S. Department of Housing and Urban Development for the Dallas TX HUD Metro FMR Area, adjusted for
household size, and as updated annually.
00 Area Median Income (adjusted for family size _)
The HOME Program assistance provided by the City will be secured by a promissory note and recorded
subordinate deed of trust (no lower than second position). Monthly payments will be required on this payable
portion of the assistance at 2% interest. The deferred loan portion will be provided at 0% interest and will be
forgiven, as listed on promissory note, for each full month the Homeowner uses the Property as his /her principal
residence during the lien period. For more details, please review Home Improvement Program Guidelines. Actual
payment information will be included in the Promissory Note.
Housing rehabilitation /reconstruction work will provide general rehabilitation /reconstruction necessary to bring the
structure into compliance with the City of Denton's applicable written building codes and property standards,
housing rehabilitation /reconstruction program standards, lead -based paint regulations, and HOME Program
property standards. Rehabilitation /reconstruction work to be completed will only be as specified in the approved
written work specification for the Property and any approved change orders. Said City of Denton applicable written
building codes and property standards, housing rehabilitation /reconstruction program standards, lead -based paint
regulations, HOME Program property standards, and written work specifications and change orders are
incorporated herein by reference.
Appendix 3 Page 21
The after -rehab value of Property must not exceed the 203(b) FHA Mortgage Limits for the Dallas -Fort Worth -
Arlington, TX metropolitan area.
203(b) FHA Mortgage Limit:
89,349 (1 unit)
REHAB: Estimated Milestones
5.10 1 7.12 days
Permits Work begun -
issued Foundation
repairs and
roof begun
12.24 days � 24.30
Electrical & HVAC,
Plumbing Windows
rough - & doors.
Structural
repairs begun
RECONSTRUCT: Estimated Milestones
30.40
_#a Ls_
Permits
issued
100.115 da
Wall
insulation,
masonry
30.60 days 1 50.75 days 75.90 days
40.50 days 1 50.65 days j 65.80 days
Drywall, Painting, Miscellaneo
cabinetry, Floor finish out.
finish coverings,
Plumbing Attic
and insulation
Electrical
80.100 days 100 days
Demolition Foundation Framing, Plumbing,
and clearance
including sheathing and
electrical,
plumbing roofing
HVAC &
rough
windows
115 days 115 -125 days 125.150 days 150.175 days
Insulation
Drywall, texture, Painting,
HVAC, electrical
inspection &
and trim out incl cabinetry floors
& plumbing
Energy Star 1St
doors
finish out
inspection
2. PROPERTY STANDARDS
Seconds
Inspection
including
sheathina
175.180 days
Finals insp. And
E/S insp.
All rehabilitation /reconstruction work write up /bid specifications /plans, completed by Community Development
staff, will be completed in compliance with the City's Home Improvement Program written property standards and
all applicable written local building and property codes and standards.
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.
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 2009 International Residential Code (IRC) standards.
The homeowner will be required to make arrangements for relocation while the reconstruction takes place.
Home Improvement assistance will only be provided to cover the cost of rehabilitation /reconstruction necessary to
bring the property in compliance with locally adopted, written building and property standards,
Rehabilitation /reconstruction Program standards and, applicable Federal and State building and property
standards.
3. WRITTEN AGREEMENT PROVISIONS
Homeowner will enter into a written agreement with the Homeowner - selected, qualified Contractor for the
completion of rehabilitation /reconstruction work. The written agreement shall include the scope of work, the cost of
Appendix 3 Page 22
the work to be completed, and the time frame during which the scope of work must be completed, all of which have
been reviewed and approved by Homeowner, City, and Contractor at the preconstruction conference.
4. DEFAULT ON CONTRACT OR SALE OF PROPERTY
If the homeowner 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 homeowner 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; and
5. Failure to pay utility bills when due.
SALE OF PROPERTY: In the event the homeowner 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.
For more details and information, please refer to Home Improvement Program Guidelines. By signing below, Homeowner
acknowledges receipt of this document and understanding of its contents.
Name, Homeowner
Date
Alma Espino, Housing Programs Manager, City of Denton Date
Appendix 3 Page 23
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 (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 24
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 EnergyStar® qualified home. Space and room limits for replacement housing are determined by
household need. Replacement housing will provide up to the following:
ENERGY
Provided Space
1 Kitchen
1 Dining Area or Kitchenette
1 Laundry Alcove
1 Food Pantry Closet and /or Cabinet
Qualified
1 Coat Closet
1 Linen Closet
Home
1 Living Area
2 -3 Bedrooms * ** W /Closets **
1 or 2 Bathrooms*
1 Attached (Non- Conditioned) Storage Area
Compared with standard
homes, ENERGYSTAR
Maximum Square Feet Allowed (Within 5 % +1 -)
qualified homes use
2 Bedrooms 1 bath
-1000 SF
substantially less energy
2 Bedrooms 2 baths
- 1080SF
for heating, cooling, and
3 Bedrooms 1 bath
- 1150 SF
water heating - delivering
in annual savings.
3 Bedrooms 2 baths
- 1200 SF
4 Bedrooms 2 baths -1250 SF ( ** *must be approved)
Amenities
1 Brick Mailbox
1 HVAC Unit (16 -Seer AC)
1 Front Entry Door
150 gallon Water Heater
2 -Car Driveway Space
Programmable Thermostat
1 Energy Star Refrigerator
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, 1side& 1 Rear Hose Bibb
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 accessible to accommodate physically handicapped household
member(s). 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.
** *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,
Appendix 5 Page 25
Appendix 6
c�T�
1C/F
DENTON
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 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 Division. 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 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
Appendix 6 Page 26
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
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:
Appendix 6 Page 27
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 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:
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 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.
Appendix 6 Page 28
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 29
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
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:
Date Plan Developed
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 30
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
Community Development staff Signature
City of Denton
Community Development Division
601 E. Hickory, Suite B
Denton, TX 76205
(940) 349 -7726
Appendix 6 Page 31
Homeowner Signature
Date
Date
Project Relocation Plan Approval
Page 2
Steps for relocatinLy 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.
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).
Appendix 6 Page 32
City of Denton Community Development
Home Improvement Program
601 E. Hickory, suite B, Denton, TX 76205
HOMEOWNER'S SERVICE AGREEMENT
1 1we, (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 10 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 owners) 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
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.
Appendix 6 Page 33
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.
Home Improvement Program's Ememency 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," "our," and "us"
respectively, if more than one owner signs below.
Homeowner's Signature Date
Homeowner's Signature Date
Appendix 6 Page 34
COMMUNITY DEVELOPMENT DIVISION
(940) 349 -7726
Texas State Relay (telephone device for the deaf) by calling:
TDD (800) 735 -2989
Applicant is subject to all guidelines changes.
www.cityofdenton.com ADA /EOE /ADEA
TY