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WHEREAS, the City Council of the City of Dentan recognizes the need to assist low and
maderate incame families in securing safe, sanitary and decent housing; and
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`�1 ��""-I'l�:D�C fl. The City Council approves the 2018 Home Improvement Program Guidelines
and Eligibility Criteria which is attached hereto and made a part af this ordinance for all purpases
as Exhibit '°A" and authorizes the City af Denton Community Development Divisian to administer
this program.
� I;���"'l f���,�� "?,. The City Council authorizes the expenditure of funds up to $100,000 by the
Community Development Division for each project meeting Home Improvement Program
Guidelines and Eligibility Criteria for the 2018 Program year, subject to compliance with
procurement laws.
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The motion to approve � � ade by _ _� �U� ����/ .. � � ��� . ..................� and seconded
(���� Or mance was m
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by � � �^ � "� � �� � � � � � �� � _ ; the Ordinance was passed and approved by the
fallowing�v�a�c� �[�`�_ - �:
Chris Watts, Mayor:
Gerard Hudspeth, District 1:
Keely G. Briggs, District 2:
Don Duff, District 3:
John Ryan, District 4:
Deb Armintor, At Large Place 5:
Paul Meltzer, At Large Place 6:
N�a � Abstain Absent
PASSED AND APPROVED this the %�L . da of ���� �� � � � � '" � 2018.
Y �� �..� �` �"�"�.,.. ���. � �:...... .........
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY: ��,,� 1���� a .�� ���������"..��� ����... .�. ...... ��
APPROVED AS TO LEGAL FORM:
AARON LEAL,INTERIM CITY ATTORNEY
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Page 2 of 2
EX I IT "A"
2018 Home Improvement Program Guidelines and Eligibility Criteria
Exhibit 3
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��°og�°a� G��deli��es &
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Available in Spanish /
Disponible en Espa�ol
Effective Date: 10/01/2018 �"""" I
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Table of Contents
INTRODUCTION....................................................... ..�..�ww.,a�.,,,..� .,,,,,... , ,� �,m,..,„.�,,.,,, ....,,,, ,,..,�.,. .�.�,�... ,....,...,..4
Home Improvement Program .................��,�,�„���,,,,..,. .. ,..�,�... ,....,. ., .,....,.. ,..,�...� ,,,,.,,. . .,,�...�� , ....,.,,�����.����„a5
Description of General Program Procedures ...................................... .....�... .,,,,.... ,.,..,,,� ,�,.,,,� ,...,...,..�„���„�..5
I. PURPOSE .............................. ......... ......... ......a�. ��....,,� .,���,,�,,,�,,,. ,. ..,.,.�.�.� . ..,.... .,......, ,�....,,. ,,.�.,.,,...5
II. DESIGNATED AUTHORITY .............�,�,���,���... ....m....„.... ...,.... ...,..... ..,.„.,, .,,,,�.,,..�,�..,�, ..,.,�..,......,.��,,5
III. ELIGIBILITY REQUIREMENTS�..... ,�..,�... �,,.,�... ,,..�,......�»�.�„��,„�..�� .... ......... .....�,,, .,,.,�,., ..a�,���. ...,,....�.5
IV. APPLICATION PROCESSING .............................. ........� .,,,...,.,.,���,�.. �..,,.... .,......A......... ....,.,.,...,,..,....8
V. SELECTION OF RECIPIENTS FOR ASSISTANCE ................„.,,�..,...,.......�,,,.o...,..................,.........................9
VI. WAIVERS AND APPEALS PROVISION........� ............................ ..� ....„.,....„ �
VII. FINANCIALASSISTANCE .,....... ,,�.�.��..»��,���. �,,,�,.,....,„.... ......„.........,„§,10
VIII. CONTRACTREQUIREMENTS ...............................�„,..�. ,�u,u.,,s,...,d�„„,,.....,.. ..,,..........a..a�,,....,,....,�......10
IX. PROJECT FEASIBILITY CRITERIA .................................. .....�w.. ,.......„ ......... .........,......... ,,,,,,..,,.....,....12
X. PROJECT COST LIMITS ...............................................................�..��..�.�.,,,.....,......�..,..,,....„,..�.,..,,..,�..��.�.13
XI. ALLOWABLE EXPENSES...........w� .. ......... ........�„� ,,,�,,,......,..,..........., ....,.., ..�..,, ,�,�,., ,��,, ..,...,,�����,,,,��13
XII. PROGRAM ACTIVITY OPTIONS .............. ..�.,,.o„ ,.�.,,,....�.„.,,..,...........w. ...... .�.,,� ,,,,, .,a.,,, ,,,.. ..,, ,,,,,,,,,14
XIII, PROCUREMENTAND CONTRACTOR SELECTION..,.... .�,,.�� .. ................. ......a�. ,...��,.� ��,,..�.,�, ,�, .*„15
XIV. PROJECT MONITORING .................................... ........a ,........ �,�,���,,,,. .,,... .............,...,. ,.��,.�,. ,,...,....18
XV. PAYMENTS TO CONTRACTOR ..... ......... .���,���. �,.�,.... .,„,.��.. .....a... .,..,,,�.�,,..,,���� ,.,.�,.....,........,� ,�,,,,,,19
XVI. CONTRACTOR DEBARMENT .................. ......... ............��,.�.,,��.,�� ��. ....,,...........,.. ......,, .,,,.�,,. „�...,.,.19
APPENDICES............................ .�...�.., ...,..,��.�,�,�.. �„�. .........�,.... ..,..,,,. .,....,.�.�, .,,,,,.,,.,..,.�. ......,.. ,.....,.. ,,,......�21
APPENDIX 1 Qualifying Income Limits and Ranges ...............................................a��,....�,..��.�..,,..,....,...,,,,,,,.,..22
APPENDIX 2 City of Denton, Texas Map .................... .....�.,, .,. ..�,,,�, �, .......,.................. .,,.,.,.. ...,,�,�, ,,,,�,,,,,24
APPENDIX 3 HOME Beneficiary Written Agreement . .................... ......�..,..,,....w...... .. .,.���.���,,,�, ,� ,,� , ,�.,.��25
APPENDIX 4 Temporary Rehousing Questionnaire & Agreement ..................................................................28
APPENDIX 5 Space & Amenity Allowances For Reconstruction Activities .....................................................29
Appendix 6- Lead-Based Paint Hazard Control Policy & Procedure ..............................................................31
�■
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
�
o e I rove e �t rogra ��
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.
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 4/11/2017):
Rehabilitation / Reconstruction
80% of the AMI
b�N�u�����ald ���� Maximum Nr����e Limit
_.�.._..._ ..� W.�___
1 $43,250
2 $49,400
3 $55,600
4 $61,750
5 $66,700
6 $71,650
7 $76,600
8 $81,550
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:
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, ww.greenpath.com 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.
11. See "household" guideline at section 111.6.10.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 within the city
limits of Denton (Refer to City of Denton Map - Appendix 2).
2. Must exhibit building code deficiencies that make the dwelling unsafe or unsanitary.
3. Structure must be more than 15 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.
Page 7
10. Households and/or properties previously assisted through this program may or may
not be eligible for additional assistance as follows:
a. A property that received rehabilitation assistance may be eligible for additional
assistance when all liens have been paid and released.
b. 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. Property is occupied by the owner and is their principal residence.
3. Property is located within the limits of the city of Denton (see Appendix 2).
4. Property meets all requirements in Section III.B.
5. Applicant must complete a Waiting ListApplication Form and attach a copy of their
property deed or proof of ownership. (Waiting ListApplication 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 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.
3. Assistance in contractual compliance between applicant and contractor.
4. Assistance in inspection of construction of replacement dwelling, if applicable.
VI. WAIVERS AND APPEALS PROVISION
A. Request for Waiver: The City of Denton Home Improvement Program must follow specific
guidelines in order to assure proper administration and management. In the event that an
applicant feels that his/her circumstances require special consideration, s/he may request,
in writing, a waiver from the usual requirements. All requests should specify the
requirement(s) to be considered for waiver and state the applicant's reason(s) or special
circumstances why s/he believes a waiver should be approved. The Community
Development Administrator will review requests on a case-by-case basis. Applicant will be
notified in writing of the final decision.
VII. FINANCIAL ASSISTANCE
A. Owner Contribution is a percentage of the total project cost that the applicant must
provide at contract signing. These funds are held in an escrow account and will be
expended before City funds are used when making contractor payments. The owner
contribution increases on a sliding scale as household income increases. See Appendix I for
percent of owner contribution by income ranges and family size.
:
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�`��� r�� �c��fic�rw �����. The City of Denton will fund the remaining project costs using
Federal HUD CDBG and HOME dollars, program income and private funds, when available.
Term of the Note is determined by the activity to be completed and/or total project cost as
follo�ws:
Activitv / Prolect Cost
Rehabilitation/Below $10,000
Rehabilitation/Between $10,000 - $25,000
Rehabilitation/Between $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: There are two types of financial assistance:
1. Two-part loan that includes a payable and deferred loan.
2. Deferred loan. Forgiveness loan will be provided to seniors, age 62 and above, who are
at the income level below 50% of HUD median income.
See Appendix I for income ranges by household size, payable to deferred loan ratios and
description of Payable and Deferred loans.
E. Applying to the Home Improvement Program is voluntary. Funds for temporary relocation
are not provided.
VIII. CONTRACT REQUIREMENTS
A. The City of Denton will be in the first lien position. When a first lien position is not possible,
the City may accept second lien position, subject to the review and approval of the
Community Development Administrator. Liens are released once all the requirements and
conditions of the deed and promissory note have been met.
B. DEFAULT ON CONTRACT: If the applicant defaults on their contract, the lien will be called
due in full, and referred to the City of Denton's Legal Department to begin acceleration of
the note as allowed by law. The City will make every effort to work with the applicant to
avoid foreclosure and will examine each situation on a case-by-case basis. Examples of loan
default include, but are not limited to: 1.) Delinquent loan payments; 2.) Failure of grantee
to reside in the assisted dwelling unit as the principal residence of applicant; 3.) Failure to
maintain adequate homeowner insurance coverage; 4.) Failure to pay property taxes when
due;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 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.
TEMPORARY DISCONTINUATION OF RESIDENCY: In the event the owner(s) temporarily
discontinues residence due to a medical condition, but has an 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 area.
Page 11
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(sJ 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, � Ni�;�t�c�t� f�r�����iru - 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
�"�����_c�r7c� Li�ra 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.)
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
Page 12
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, �u�i'��Ifrues for the Evaluation and Control of Lead-
Racarl Paint Ha�arrlc in Hn�cina 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 project must meet all of the following tests to be considered feasible to
rehabilitate. Projects not feasible for the rehabilitation activity may be eligible for
reconstruction and must meet the cost criteria in items 2 and 3 of this section.
1. Rehabilitation: Using the post project square feet (properties less than 1000 SF use
1000 SF to calculate), rehabilitation is limited to $60 per square foot of total living
space up to a maximum bid limit of $75,000, 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's cost estimate.
3. The after project appraised property value will not exceed 95% of the current
Existing/New Homes HOME Purchase Price Limit =or After-rehab Value Limits for
Denton as established by HUD (See Appendix I).
B. PROGRAM MINIMUM LIMITS FOR Home Improvement projects: A dwelling needing less
than $5000 of repairs is not eligible for Home Improvement Program assistance.
XI. ALLOWABLE EXPENSES
Federal CDBG and HOME grant funds will be used to pay for eligible project costs to complete
substantial rehabilitation of existing owner-occupied properties and reconstruction of
substandard owner-occupied properties. Some allowable fees are:
Page 13
o Cost of room addition(s), to relieve serious overcrowding when approved by the Community
Development Administrator.
o Demolition of substandard structures as needed to complete projects.
o Costs necessary to build modest, energy efficient, safe and sanitary replacement of principal
residences
o Other eligible expenses the Community Development Division determines necessary to
facilitate the completion of activities allowed by this program (Example: title search, filing
fees, platting, engineering reports, permit and tap fees, etc.)
o Eligible administrative costs.
o Other fees and costs as allowed by the CDBG and HOME regulations.
NOTE: Funds for temporary relocation during project construction are not provided.
XII. PROGRAM ACTIVITY OPTIONS
The Home Improvement Program provides three options. The process required for all activities will
be:
Process
o CD staff will complete a project feasibility study. This inspection will include a detailed
evaluation of all deficiencies needing to be addressed to bring the dwelling up to minimum
program standards.
o Activity option determined based on feasibility criteria (Section IX.).
o Project details completed and approved by applicant.
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. PROCUREMENT AND CONTRACTOR SELECTION
The City of Denton Home Improvement Program complies with federal procurement regulations
at 24 CFR 92.505 and 2 CFR 200 et al., and applicable state and local laws and regulations. All
procurement transactions must be conducted in a manner providing full and open competition
consistent with these standards. For more information, please see Material Management and
Payment Procedures Manual.
The selection of the contractor is the responsibility of the applicant/homeowner with
procurement assistance from the City of Denton. The construction contractor that carries out
HOME-funded rehabilitation work may be selected by the applicant/homeowner and/or the
participatingjurisdiction (City). The construction contractor must be qualified to perform the
work, and must charge a reasonable cost for work performed. THE CITY OF DENTON AND THE
APPLICANT RESERVE THE RIGHT TO REJECT ANY AND ALL BIDS. The City reserves the right to
rebid if bids received are above/below the 10% of cost estimate.
All procurement transactions by applicant/homeowner of the Home Improvement Program shall
be overseen by the City of Denton Purchasing and their agents, in a manner which provides
maximum free and open competition consistent with State and Federal requirements.
Procurement procedures shall not restrict or eliminate competition.
Some of the situations considered to be restrictive of competition include but are not limited to:
• Placing unreasonable requirements on firms in order for them to qualify to do business;
• Requiring unnecessary experience and excessive bonding;
• Noncompetitive pricing practices between firms or between affiliated companies;
• Noncompetitive contracts to consultants that are on retainer contracts;
• Organizational conflicts of interest;
� Specifying only a brand name product instead of allowing an equal product to be offered
and describing the performance or other relevant requirements of the procurement; and
• Any arbitrary action in the procurement process.
PROCUREMENT AND CONTRACTOR SELECTION PROCESS:
�i�,uuP�r���r��ir�r�
Page 15
City of Denton Community Development Division Housing staff will prepare specifications
and cost estimates for rehabilitation work per City of Denton General Specification Manual
for housing rehabilitation and reconstruction (required by HUD). Applicant will review and
approve final work write up or plans.
Bids will be obtained in accordance with the City's policies and procedures.
• Informal Bids ($50,000 or less)
For projects below the $50,000 limit, the informal bid process shall be used to ensure
each project is competitively priced. Informal bids shall be issued to the list of Pre-
Qualified Contractors as well as local HUBs. If the applicant/homeowner has a preferred
contractor who is not on the list, the City will also send a bid request to that contractor.
• Formal Bids (Over $50,000)
Legal Advertising Requirements for Formal Bids
The competitive sealed proposal requirement applies. Notice of the time and place at
which the proposals will be due must be published at least once a week for two
consecutive weeks in a local newspaper, with the date of the first publication being
before the 14th day before the date set to receive proposals.
Vendors that are registered with the state CMBL lists and the City of Denton vendor
registration will be notified of the request for proposals. The information will also be
posted to our website under "Open Solicitations" for anyone to review.
The City will email requests for bids to all contractors on the "Qualified Contractor's
List" as well as local HUBs. Applicants should recognize that the City's list of contractors
is not an endorsement of those contractors; the list merely signifies that the contractors
are adequately insured, have provided references and financial information and meet all
program requirements.
If the applicant/homeowner has a preferred contractor who is not on the list, the City
will also send a bid request to that contractor.
All contractors participating in the Home Improvement Program must meet all
program requirements as listed in the Contractor Policy and Procedures. No
contractor mav bid if he/she is related to the applicant. Procurements are subject
to the City of Denton Ethics Ordinance. A pre-bid meeting will be scheduled so that
all interested contractors can have their questions answered.
Bid Openin� and Review
• For Informal Bids, Community Development Division staff shall open, review, and prepare
the bid tabulation. Staff shall review bids(s) for reasonableness, competitiveness, and
completeness. The bids will be compared with the in-house cost estimate and any bids 10%
above/below the in-house cost estimate will be disqualified.
For Formal Bids, Purchasing will open all bids, review bids for responsiveness, determine
eligible bids, and create and forward a bid tabulation with bidders' information to the
Community Development Staff.
• The competitive sealed bidding requirement applies to a contract for goods or services,
and the contract may be awarded to the supplier/contractor providing the "best value" to
the City based upon evaluation criteria published in the request for proposal
specifications. The evaluation criteria must include a relative value for each factor. The
City may solicit best and final offers (B.A.F.0), or conduct formal negotiations from
respondents to arrive at an overall best value.
� If applicable, when a contractor comes to meet with an applicant/homeowner, the
applicant/homeowner should:
� Show the contractor the mandatory work items that have been identified by the
Community Development per the work write up, construction plans and project
standards.
• Advise the contractor that the bid proposal must be submitted to the City in
compliance with the procurement requirements.
• DO NOT SIGN ANY AGREEMENT WITH THE CONTRACTOR,
Bid Award
• For Informal Bids, The property owner may select any eligible bid, as long as the price quoted
is within 10 percent of the cost estimate prepared by the Community Development staff and
does not exceed the maximum dollar limits of the program.
� If none of the bids solicited are within 10 percent of the preliminary work write-up
initially or by negotiation, the proposals must be rejected and other proposals must be
obtained that are within the specified cost limits.
Any bids received outside of the estimated range of housing rehabilitation will be
rejected and the property owner will be notified in writing. Contracts will not be
awarded until the City of Denton has completed its contractor certification and the
contractor has met requirements.
• When an acceptable, eligible bid has been secured and the general contractor is
selected, the contractor is notified that he/she must furnish the City of Denton with a
current Certificate of Insurance. Staff will be responsible for verifying the accuracy and
completeness of the forms submitted by the contractor. If all submitted documents are
in order and the contractor is not on the list of parties debarred or suspended from
participation in federal procurement or non-procurement programs or if the contractor
is not suspended or debarred from participation in the Home Improvement Program,
staff will proceed with the preparation of contract documents.
• For Formal Bids:
• Purchasing staff, Community Development staff, and applicant/homeowner will meet to
review all the bids and evaluate bids based on published criteria.
Page 17
• Price for recommendation must be within 10% of bid estimate.
• 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 CITY OF DENTON AND THE APPLICANT RESERVE THE RIGHT TO REJECT ANY AND ALL BIDS.
Contract
If the Community Development Administrator approves the bid proposal submitted by the
applicant, the Community Development staff shall proceed with execution of a contract.
A construction contract and all other required agreements must be signed prior to construction
beginning. 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.
XIV. PROJECT MONITORING
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.
�r;r� t�ar��� �� 1N�+"a�r�
��*
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.
XV. 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.
XVI. 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.
Page 19
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 i��r v�rrTi:���i� 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.
APPENDICES
Appendix 1 Qualifying Income Limits and Ranges for the City of Denton's Federally Assisted
Programs
Appendix 2 City of Denton 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
APPENDIX 1 Qualifying Income Limits and Ranges
FY 2017/18
City of Denton Community Development Division
Qualifying Income Limits for Federally Assisted Programs
........� ......�.m,,,,,m.,�, �..� Rehabilitation and O rr �.�...�m r�.
__ LL..... ption . g. g......._.
al Reconstruction EI
ible Income Ran es
� � . ' .�.. dates)
� (The income limits are set by HUD - ad'usted on HUD s effectivemmm y��w ,,,,,,,,,,,,,,
2-Part Loan *40% Payable / *25% Payable / *15% Payable / *5% Payable /
Ratio* 60% Deferred 75% Deferred 85% Deferred 95% Deferred
Owner �� 1% of Total�� ��� ��� 75% of Total �� ����� � 5% of Total �� .25% of �
� Total
Contribution Project Cost Project Cost Project Cost Pro�ect Cost
��........... . �.-...-�� �,� �.....�.. ..._... ,� ....� �..._ �� �..� _� �____www�.
ncome Range Moderate Low Very-Low Extremely-Low
��.........�.... �_ �. �- �
���� � o ° � % AMI-30% AMI <_30% AMI ,I
„amily Size , 80% AMI - 65/ AMI 65/o AMI - 50% AMI 50 � ,�
1 $43,250 - 35,151 $35,150 - 27,051 $27,050 - 16,251 $16,250 or below
. �. .... m.., .� .. .......�6�..: .... �.�....��.�.. .
$49,400 - 40,151 $40,150 - 30,901 $30,900 18,551 $18,550 or below
mm.... ......._ w �........ � �������� 200 - 34,751 � � ���$34 750 -�20,851 $20,�850 or��������������
�.�ww.
3 $55,600 - 45,201 $45, , below
_ .............._ 4 $61750.._ ....� .._ _ .... .��..�... � _..� _�.��,..��...................�
, 50,201 $50,200 - 38,601 $38,600 - 25,101 $25,100 or below
�5 � $66,700 - 54,201 $54,200 - 41,701 $41,70
0 - 29,421 $29,420 or below
�......... . �. � _.� .... _ ��_.�..��.��. _.........�ww�w......�.�.
6 $71,650 - 58 251 $58,250 - 44,801 $44,800 - 33,741 $33,740 or below
.�� � ..............�.................. $76,600 -�62,251�............,.........��$62,250 - 47,90.1...........� �, $47,900....._...3.8,061 __ ..$3.......................... ..
8,060 or below
� .............�m $ -$81,550 - 66,301 $66,300 - 51,001 �.$.51,0 �m..m_ .....�. �
� 00 - 42,381 $42,380 or below
Financial Assistance Levels: There are two types of financial assis m
�.� .�., ..... ...�m .........___ _ � .....
' tance:
• Two-part loan that includes a payable and deferred loan,
� Deferred loan. Forgiveness loan will be provided to seniors, age 62 and above, who are at the income
level below 50% of HUD median income,
Part I: �"�y���ble Loan is based on a percentage of the total City-paid project cost (see Section VII.D.). The
payable portion of the loan is amortized over the term of the note (60 to 240 months - see Section VII.C,),
and carries a 2 percent interest rate. There is no penalty for paying the payable loan off early.
F���t I�; i��$��r��e� Lt��r� 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,
Appendix 1 I�age 22
*Persons a�e 62 or older who are at the income level below 50% of HUD median income will be eligible to
receive a 100% deferred loan. Persons age 62 or older� whose income level is above 50%, 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.
����rr���l� In�a�r��: 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: June 1, 2018
95 Percent of the 2018 After Rehab Value Limit for Existin Homes;����������� ������ ���������
���� ���� �� g $228,000
Denton — Effective: 4/1/2018 New Homes: $262,000
Appendix 1 �age 23
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Appendix 2 Page 24
APPENDIX 3 HOME Beneficiary Written Agreement
,��,, Home Improvement Program
���� ������������� HOME Beneficiary Written Agreement
Homeowner Name(s) & Property 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 t�Nc�rr�rr����?rr�Am �NN��r�� (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 $(amount) to assist with the
cost to rehabilitate/reconstruct the Homeowner's Property as listed above.
[� Rehabilitation of an owner-occupied home;
� 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.
or
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). The deferred loan 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 monthly deferred payment information will be included in
the Promissory Note.
Appendix 3 ��ge 25
Housing rehabilitation/reconstruction work wili 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.
The after-rehab value of Property must not exceed the 95% of HOME Maximum Purchase Price or After-
rehab Value Limits for the Dallas-Fort Worth-Arlington, TX metropolitan area.
Ex sting Homes�HOME Purchase PricemLimit $2 / �
62 000
____� 28,000 ���..
REHAB: Estimated Milestones
5-40 60-100 90-120 120-150
days 30-60 days 50-90 days days days days 140-150 days
Permits Work begun - Electrical & HVAC, Drywall, Painting, Miscellaneous
issued Foundation Plumbing Windows cabinetry, Floor finish out.
repairs and rough - & doors. finish coverings,
roof begun. If, Structural Plumbing Attic
required: Lead repairs and insulation
Hazard begun Electrical
Reduction
RECONSTRUCT: Estimated Milestones
30-40
days 40-50 days 50-65 days 65-80 days 80-100 days 100 days
Permits Demolition Foundation Framing, Plumbing, Seconds
issued and including sheathing electrical, H Inspection
clearance plumbing and roofing VAC & including
rough windows sheathing
100-115
days 115 days 115-125 days 125-150 days 150-175 days 175-180 days
Wall Insulation Drywall, texture, Painting, HVAC, electrical Finals insp. And
'I insulation, inspection & and trim out ind cabinetry & E/S insp.
masonry Energy Star 15t doors floors plumbing finish
inspection out
2. PROPERTY STANDARDS
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
Appendix 3 Page 26
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 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 �age 27
APPENDIX 4 Temporary Rehousing Questionnaire & 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 I�o
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
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 �a�� 2�
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:
�"�"r�+��ri�1��u� ����+����
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 Are
k�'�a�i�rart9��u�r� F�c�� d�wll�vu�c�_�'I�t'i��i� � �"✓�, ��.
2 Bedrooms 1 bath - 1000 SF
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 HVAC Unit (16-Seer AC)
1 Front Entry Door
1 50 gallon Water Heater
2-Car Driveway Space
Programmable Thermostat
1 Energy Star Refrigerator
needed)
Compared with standard
homes, ENERGYSTAR
qualified horyees use
substantially less energy
for heating, cooling, and
water heating - delivering
in annual ,�°rr��t��.�*.�a,
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, lside& 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
�V+��ari'�r�: 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.
**�Ic�tM��� �I�s��� will ideally, when possible, provide a minimum of 4' X 2' of space per
bedroom,
Appendix 5 Page 29
***����r�r��u�i� �+1��ci��w�wr� �Ir�r�b�r �rf ���r�a�rr�s 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 30
Appendix 6- 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 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:
Appendix 6 �ag� 31
The Home Improvement Program requires that a Homeowner Protection Plan, includes all household members,
must be in effect before lead hazard control work can commence. Safety is given first priority in determining
these plans. Homeowner protection is mandatory and designed to protect homeowner(s), members of the
household, pets and personal belongings during lead hazard control work. The attached Homeowner Protection
Plan is specific to your lead hazard control project and was developed based on the scope of work to be
completed, This Plan assures safe housing is available to the homeowner. These plans are the final decision and
responsibility of the Lead Abatement Project Designer. By signing and dating the Home Improvement Relocation
Approval page, you will be agreeing to the Homeowner Protection Plan that is a part of this document:
Project Start Date:
Once the homeowner(s) has selected a contractor a Project Start Date must be established. This date is
determined through a cooperative effort and agreed upon by the contractor, homeowner(s) and Community
Development staff. The three factors that must be considered to set a Project Start Date are:
First: The date the contractor can actually begin the project. Contractor is to include time needed to meet the
Three-day Right of Rescission requirement as well as any time needed to prepare for the project such as,
ordering materials needed that must be available on the date the LHC work actually begins (windows, doors,
etc, ).
Second: The date the homeowner(s) has prepared for all requirements of the Temporary Relocation Plans (as
written above). This date must take into account all arrangements needed to be made by owner (such as
hotel reservations, packing, storage, if required, and any other arrangements that must be made prior to the
work beginning).
Third: The date City of Denton staff can have contracts ready for signing (including a date all parties required
to sign contracts will be available to sign)
All parties must give priority to reaching an acceptable Project Start Date. Once a Project Start Date has been
established, all parties will be notified of:
Project Completion Date:
The amount of time needed to complete a project is decided on a project-by-project basis but usually fluctuates
from between two days and two weeks. The contractor is required to provide a set project completion date (or,
provide the number of consecutive working days the project will 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:
Appendix 6 Pag� 32
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 fowr rewlocatine a familv:
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.
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 �a�� 33
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): __w
Personal Belongings/Household Goods Protection:
Other Instructions required for this project:
Signed
Lead Abatement Project
Designer Name Printed:
1.) Contract Signing Date:
2.) Project Start Date;
3,) Project Completion Date:
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 �a�e 34
Home Improvement Program
Project Relocation Plan Approval
Date Policy/Procedure Received:
Project Address
...� �� ............. .. . A, � �. � .. ..... �_.
Homeowner Name(s):
-------- �...m .................................................................................................................................................................................e.._.._.._ _ .........................�.. �._..........�
Homeowner Address:
m� .........................................................................................w �w�..w�..,..,.��.. ... ..........................�.
City State; Zip:
.�...�.� .. ....,��
Homeowner Phone:
___..�ww __� ..... . ... �.�.�
Contractor : City State: Zip:
Contractor Address: Contractor Phone:
By my/our signature(s) below, I/we acknowledge and agree to the terms as written in the Lead-Based Paint Hazard
Control Policy & Procedure and the Homeowner Protection Plan. I/We understand that it is my responsibility to approve
specifications; review the bids and select a contractor (subject to Home Improvement Program approval), to sign the
construction contracts and change orders, and to approve the payouts.
Homeowner Signature
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 35
Homeowner Signature
Date
Date
Project Relocation Plan Approval
Page 2
�t� � fe�r ���I���t�n � f���i�� :
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 Proqram informs property homeowner(s) of abatement commencement,
preferably 10 days before.
3. Home Improvement Program starts paperwork and will advise and consult regarding extended period
of relocation,
4. Home Improvement Program will inform or provide the family with:
a. Information of time span required for the relocation.
b, Everything they should take that they will need for the maximum number of days they will be
relocated.
c. All pets should be relocated or boarded.
5. 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.
6. 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 36
City of Denton Community Development
Home Improvement Program
601 E. Hickory, suite B, Denton, TX 76205
HOMEOWNER'S SERVICE AGREEMENT
I/we, C�r��w�� �J�r��r� �� hereina ter re erred to as Owner, have applied for assistance from the Home Improvement
���������,�,,,,,� f f
Program to complete a rehab and will include lead hazard reduction and controls on my property. If this assistance is
granfed, 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 �"r���r� ��°���.
Owner's Res�ar�sibilii�i��,
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(sJ
and all members of the household from lead-based paint hazards, In those cases, owner(sJ 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(sJ 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(sJor 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(sJ 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(sJ is responsible for
carefully packing all breakables; removing all clothing from closets, etc. During the hazard reduction work, only workers
trained in lead hazard reduction may enter the work site. This means that owner(sJ 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 inferim dust lead clearance must be obtained
prior to re-occupancy by the owner(sJ 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(sJ is obtained before
commencement of the work.J
Appendix 6 Page 37
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.
�a�r�� �r��rc��^�r��r�m�.�"w�°�r�um'� f�rr�+�r��i��y,�aatN�,�ri.'��
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, contractor's bids (and such other reports which said staff deems necessary to perform its
functions).
C. Whenever the pronouns "I," "my," "we" are used in this agreement they shall mean "we," "our," and "us"
respectively, if more than one owner signs below.
Homeowner's Signature
Homeowner's Signature
Appendix 6 Page 3�
Date
Date
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/Ei7E/AI�EA
�%i'' '�i ,
,, �
;� z
Home Improvement Program
Guidelines Highlights
Effective: October 1, 2018
The objective of the Home Improvement Program is to provitle assistance
to homeowners with major repairs, through rehabilitation or reconstruction.
The program is intended to assist low and moderate-income owners who
cannot afford to complete the repairs themselves,
Who is Eligible?
As a homeowner, you may be eligible for assistance if you meet all the
following conditions;
�',� Your home must be located within the city limits of Denton
� You must own (hold title to the property) and live in your home as
your principal residence for the past 2 years.
Exhibit B
� Your home must have code tleficiencies that make the house unsafe or unsanitary,
�� Structure must be more than 15 years old.
� Your gross household income total must be at or below the Yearly Qualifying Income Limits;
' � e ��� Famil Size M�
Family Size Maximum Incom �
' y aximum Income
1 $43,250 5 $66,700
2 $49,400 6 $71,650
3 $55,600 7 $76,600
4 $61,750 S $81,550
,.�..� . ..�.,.... �.�... ..�.�_ � ��.�.��...._��_� m.....��.�._�.......m.�
� .... ......� .. �... ... .. P...� ��r�....� ,,,,.�...... �....._� .e 4I01/2018
Income Limit Source, U.S. De artment of Housin and Urban Develo ment E ective Dat ��
�� Your property must meet all zoning and environmental restrictions and regulations inclutling floodplain, historical,
lead-based paint, etc,
� You must complete the application process and your application and repair(s) must be approved.
Do I need Good Credit?
You must show the ability to pay property taxes, utilities, homeowner property insurance payments, lenders, creditors
and the HIP loan from the City,
I still have a mortgage payment, can I still qualify for the program?
• Yes, but the following applies;
➢ Your mortgage payment needs to be current and up to date.
➢ You need to have some equity in your home, Your mortgage loan balance cannot be more than 80 percent of
the property's appraised value for rehabilitation or 70 percent of the property's appraised value for
reconstruction,
� � �; ,� � x � � � � , . f=
„ � , .. ; . .. ,4 ,. � � � i '� , ' ! �^ � +1' � r ,.'
1 of 3
Effective 10I112018
What are the steps to receive assistance?
1. Complete the application process.
2, Assistance approvalldenial - You will receive written notice of assistance
approval or denial, If assistance is denied, you will receive an explanation
of the reasons for denial.
If assistance is approved:
3. Property will be inspected to determine eligibility.
If property is eligible:
4. Work write-up or plans will be completed,
5. Owner will review and approve work write up or plans.
6. Project is sent out to bid. Owner selects contractor from eligible bids.
7. Contracts are prepared, reviewed and signed by owner(s).
8, Work begins
9, Complete the Successful Homeownership class
10, Work is completed
11, Complete a walk-through the house with staff
12. Update or obtain appropriate homeowner's insurance.
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13. The contractor provides a one-year warranty for work completed. After this period, it is the responsibility of
homeowner to complete all repairs.
14, Payments begin about one month after the project is completed.
What Kind of Help Should I receive if my Application is Approved?
1, Rehabilitation — Repairs are made to the house to correct code violations and make needed repairs when a house
is in relatively good condition. The homeowner may be required to make arrangements for relocation while the
rehabilitation takes place,
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Reconstruction - When a house cannot be repaired, the applicant may be eligible for reconstruction. The existing
house will be demolished and new house will be built on the property. The homeowner will be required to make
arrangements for relocation while the reconstruction takes
place,
What are the Maximum limits for the Program?
The City of Denton will complete an evaluation of the house, The
City of Denton has maximum limits that can be spent to
rehabilitate/ reconstruct a house, If the project cannot be assisted
within the maximum -limits allowed the applicant would not be
eligible for the Home Improvement Program.
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Effective 1011/2018
Does the Assistance Need to be Paid Back?
There are two types of financial assistance:
Two-part loan that includes a payable and deferred loan. The
loan is available in a combination of a low interest loan and a
deferred (forgivable) loan over 5 to 20 years. Part of the loan is
payable and part of the loan is forgiven every month you live in the
house.
Deferred loan. Forgiveness loan will be provided to seniors, age 62
and above, who are at the income level below 50% of HUD median
income. Deferred loans are forgiven monthly over the period of the
loan and no payment is required as long as you remain in the home as required and meet all deed requirements.
Will a lien be placed against my property?
Yes, rehabilitation and reconstruction liens are in place for a 5— 20 year period based on the type and cost of project.
What do I need to do after the project is completed?
You need to be able to;
pay your monthly loan payment • live in the house • pay your property taxes
• maintain the house and budget to include future maintenance, repair and replacement of appliances
• maintain a homeowners insurance policy that covers all repairs or the repaired/reconstructed home
Contact Information
The program is administered by the City of Denton
Community Development Division and funded by
federal Community Development Block Grant and
HOME dollars, Questions about this program can be
addressed to:
City of Denton
Community Development Division
601 E. Hickory Street, Suite B, Denton, Texas 76205
Or by calling: (940) 349-7726 or (940) 349-7756
www.cityofdenton.com
ADA/EOE/ADEA
OR
Texas State Relay (telephone device for the dea� by
calling: TDD (800) 735-2989
NOTE:
This information is intended to give applicants a quick
overview of the program requirements, Not all eligibility
requirements are included, Community Development
Division staff will verify all the application information and
environmental restrictions and regulations to determine
eligibility. NOTE: If any information is found to be
intentionally falsified, the application will be rejected and
the applicant will not be allowed to reapply to this
program,
Applicant(s) is subject to all guideline changes up to the
time contracts are signed and project begins,
Accessible Amenities: ADA
toilet, handle bars and aseat
in the bathtub
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