20-1566ORD[NANCE NO.20-1566
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS,
APPROVING GUIDELINES FOR THE CITY OF DENTON COMMUNITY DEVELOPMENr
HOUSING ASSISTANCE PROGRAMS THAT INCLUDE THE HOME REPAIR PROGRAM
GUIDELINES AND HOMEBUYING ASSISTANCE PROGRAM GUIDELINES;
AUTHORIZING EXPENDITURES OF UP TO $200,000 FROM FEDERAL COMMUNITY
DEVELOPMENT BLOCK GRANT AND HOME INVESTMENT PARTNERSHIP FUNDS
FOR PROJECTS MEETING THE PROGRAM GUIDELINES AND ELIGIBILITY CRITERIA;
AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City received funds from the U.S. Department of Housing and Urban
Development under the Housing and Community Development Act of 1974, as amended; and
WHEREAS, the City Council approved the 2020 Action Plan for Housing and Community
Development which includes an authorized budget expenditure of funds for Community
Development housing assistance programs; and
WHEREAS, The City Council of the City of Denton recognizes the need to assist low and
moderate-income families in securing safe, sanitary and decent housing; and
WHEREAS, The City of Denton provides housing assistance programs administered by
Community Development and funded through federal grants from the Department of Housing and
Urban Development including Community Development Block Grant and HOME Investment
Partnership funds; and
WHEREAS. The City Council deems it to be in the public interest to approve the programs
guidelines; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The City Council approves the 2020-22 Program Year Homebuyer Assistance
Program Guidelines, which are attached hereto and made a part of this ordinance and authorizes the
City of Denton Community Development Division to administer this program.
SECTION 2. The City Council approves the 2020-22 Program Year Home Repair Program
General Guidelines, which are attached hereto and made a part of this ordinance and authorizes the
City of Denton Community Development Division to administer these programs.
SECTION 3. The City Council authorizes the expenditure of funds up to $200,000 by
Community Development for housing assistance projects meeting Home Repair and Homebuyer
Assistance Program Guidelines, subject to compliance with competitive bidding laws, where
applicable.
SECTION 4. This ordinance shall become effective immediately upon its passage and
approval.
Page 1
; e 1[A:baP K : :t g ; ! i n a n c e w a s Ir][]:a dti eb yo r=11=: :as hIndfollow ?
and seconded
approved by the
Aye Nay Abstain Absent
-1Mayor Chris Watts:
Gerard Hudspeth, District 1 :
Keely G. Briggs, District 2:
Jesse Davis. District 3 :
John Ryan, District 4:
Deb Annintor, At Large Place 5:
Paul Meltzer, At Large Place 6:
g
J
J
£
7
-L
PASSED AND APPROVED this the btS day of oc+ok)Car , 2020.
22
CHRIS WATTS, MAYOR
Gerard Hudspeth, Mayor Pro TemATTEST:
ROSA RIOS, CITY SECRETARY
BY: J.
APPROVED AS TO LEGAL FORM:
AARON LE AL, CITY ATTORNEY
+
Community Development
Homebuyer Assistance Program Guidelines
2020-22 Program YearsnEO
INTRODUCTION
The Community Development has administered the Homebuyer Assistance Program (HAP) since
1992 to help low and moderate-income families purchase their first home. Funds are provided
as a secured forgivable loan at 0% interest for five (5) to fifteen (15) years, and the note is forgiven
monthly. The loan balance is payable upon the sale, home equity loan, lease, some refinance
loans or transfer of title. The program is funded through federal grants from the U.S. Department
of Housing and Urban Development and is available on a first-come-first-serve basis if funding is
available. Guidelines are subject to change based on changes to the federal regulations. Any
questions should be addressed to Community Development.
Community Development
601 E. Hickory, Suite B, Denton, Texas 76205
Phone Number: (940) 349-7726
ADA/EOE/ADEA - TDD (800) 735-2989
WHO IS ELIGIBLE?
Participants must meet the requirements listed below to qualify for the program.
PROGRAM ELIGIBILITY
The household must:
1.Be first-time homebuyer:
a) Have not owned a home in the past three years;
b) Displaced single parents; and/or
c) Own a substandard mobile home.
Be a U.S. citizen or a legal resident.
Qualify for a mortgage loan from a Participating Loan Officer. The program has restrictions
on interest rate, debt-to-income ratio, and type of loans. Non-occupant co-borrowers or
co-signers are not eligible.
Contribute a minimum of 1.75% of the sales price toward the purchase of a home.
Have cash reserves of one month of mortgage payments in their checking, savings
account, or any other assets after buyer contribution.
Agrees to live in the home as their primary residence during the five-year term of the
forgivable loan.
Attend a HUD-approved homebuyer education program. See page 4 for a list of agencies
that offer homebuyer education classes.
2.
3.
4.
5.
6.
7
EFFECriVE IO/01/20
Community Development
Homebuyer Assistance Program
2020-22 Program Years
INCOME ELIGIBILITY
1. Household income cannot exceed 80 percent of the Area Median Income Limits, adjusted
for family size. The current eligible income limits are provided in Attachment I.
2. Liquid assets must be less than $20,000 (not including retirement accounts, i.e., IRA’s,
4011< plan, etc.).
HOME/PROPERTY ELIGIBILITY
1. Residential property must be located inside the city limits of Denton and includes existing
or newly constructed single-family residence, condominium or townhouse. Mobile homes
and manufactured homes are not eligible properties.
2.
3.
Property must be occupied by the owner, buyer, or vacant at contract signing. Rental
property is eligible when the tenant has been notified in writing prior to contract signing
that the home might be sold, or the tenant is in the process ofvacating.
Age of home:
a) Homes built prior to 1970 may be eligible for homebuyer assistance if the major
systems of the house have been upgraded. The major systems include: electrical
systems, plumbing systems, including water and/or sewer lines, roof replacement,
heating, ventilation, and air conditioning (HVAC) and if needed pier and beam
foundation stabilization. If a pre-1970 home has not received these upgrades, the
Major Systems Replacement Program may be available.
b)Any structure built before 1978 must be free of any deteriorated paint. The City
of Denton will conduct a visual assessment of pre-1978 houses to determine the
condition of the paint. If the visual assessment shows deteriorated paint, the paint
will need to be stabilized and a clearance test conducted by trained workers in
accordance with Federal lead-based paint requirements for safe treatment.
4.The property must be safe, decent, and sanitary. An independent home inspection must
be completed by a State Licensed Home Inspection Company. In addition to the Home
Inspection, Staff will also perform an inspection of the house to ensure that the house
meet the program’s property standards. A list of required repairs will be provided. Funds
will not be released until all the items of concern have been addressed. Staff will complete
a final inspection on the property prior to closing.
Funds up to $10,000 are available to assist homebuyer with program required repairs.
These funds are separate from the down payment and closing costs assistance. The
following are specifics on the repair funds:
5.
a)
b)
This assistance for repairs is available in a grant.
Properties in the 100-year floodplain or floodway are not eligible for this
assistance.
City of Denton Community Development
601 E. Hickory St., Suite B Denton, Texas 76205
(940) 349-7726 or (940) 349-7236 2 ADA/EOE/ADEA - TDD (800) 735-2989
Community Development
Homebuyer Assistance Program
2020-22 Program Years
C)Repair funds are not available for lender-required repairs since these repairs are
required to be completed prior to closing or required to be in an escrow account
at closing.
Staff will complete the work specifications, and cost estimate of the required
program repairs before bids are requested.
Contractors with minimum liability insurance may perform the work.
Staff will seek a minimum of three bids from interested companies.
The work specification, cost estimates, and bids will be completed prior to closing.
Repairs will be completed after closing and before the buyer(s) move into their
home
d)
e)
f)
g)
h)
6.
7.
The seller must agree to the terms and conditions in the “Notice to Real Property Owner.”
The buyer and seller must have independent real estate representation prior to
negotiating terms. The buyer’s real estate representation is required to be the list of
Participating Realtors.
8.It is recommended that the house contain an adequate number of bedrooms.
Max Family
Members
1
2
4
6
1 Bedroom
2 Bedrooms
3 Bedrooms
Max Family
Members
8
10
No. of
Bedrooms
4 Bedrooms
5 Bedrooms
6 Bedrooms
9. HOME Homeownership Value Limits
Sale price and value are subject to HOME Homeownership Value Limits. The current
effective date and limits can be found in Attachment I and remain in effect
until HUD issues new limits.
WHAT TYPE OFASSISTANCE IS AVAILABLE
This is a first-come, first-served program. Funds are not reserved until the applicant has been
certified eligible AND executed purchase contract is received by City of Denton Community
Development Division. The program is contingent on availability of funds.
Eligible homebuyer may select one of the two down payment options below:
Option 1. Funding up to the amount of $14,900, 0% interest (0% APR), forgivable loan, second
lien position with a 5-year affordability period.
Option 2. Funding up to the amount of $50,000, 0% interest (0% APR), forgivable loan, with
a 15-year affordability period.
City of Denton Community Development
601 E. Hickory St., Suite B Denton, Texas 76205
(940) 349-7726 or (940) 349-7236 3 ADA/EOE/ADEA - TDD (800) 735-2989
Community Development
Homebuyer Assistance Program
2020-22 Program Years
Note: on Option 2
Assistance Amount: For HOME funding option, the Homebuyer(s) with household income
at or below 65% of AMI may be eligible to receive up to $50,000 of down payment and
closing cost assistance (Subsidy). The current eligible income limits are provided in
Attachment 1
65.01% to 80% AMI
Income Homebuyer(s) with household income above 65% but equal to or less than 80% of
AMI will be eligible to receive up to $40,000 of Subsidy. The current eligible income limits
are provided in Attachment 1
The amount of assistance is based on need. Assistance is available to assist first-time homebuyers
with the following:
1.
2.
3.
Closing Costs: HAP will only assist with normal and customary buyer’s closing costs and
prepaids. Check with your mortgage company for specific eligible and non-eligible closing
Down Payment: HAP will assist with the minimum down payment required by the
Participating Lender such as 3% percent (3%%) down payment for FHA loans and 5 percent
(5%) for most conventional loans.
Principal Reduction Funds: Principal reduction funds can only be used to assist in the
difference between the sales price of the house and the maximum loan the buyer can
afford above the minimum down payment. An affordable payment is considered 30% of
household income based on program calculation. The household cannot carry debt of
more than 43% of their monthly household income.
costs
Interested buyers will work with their mortgage company to apply for these funds. The mortgage
company will need to submit the program application to the City of Denton for approval of all
funds, including principal reduction. The City of Denton recommends that buyers and the
mortgage company receive a preliminary program approval before making an offer on a home.
TERM OF LOAN/REPAYMENT OF FUNDS
1
2.
Term of Loan: The term of the loan is five (5) to fifteen (15) years. The buyer(s) are
required to live in the home as a principal residency for a minimum of five (5) to fifteen
(15) years to comply with the program requirements.
Repayment of HAP funds: The assistance is forgiven monthly. For example: if the
assistance is $10,000 for a 5-year term, every month the homebuyer lives in the home
the loan balance will be reduced by $166.67 per month or 1/60 of the loan amount. The
HAP lien is released at the term of the loan, once all the funds have been forgiven.
However, in the following circumstances, the City of Denton will require that the HAP
assistance be repaid:
City of Denton Community Development
601 E. Hickory St., Suite B Denton, Texas 76205
(940) 349-7726 or (940) 349-7236 4 ADA/EOE/ADEA - TDD (800) 735-2989
Community Development
Homebuyer Assistance Program
2020-22 Program Years
Situation of Repayment
Transfer or sale of thMe
Foreclosure
Transfer in lieu of foreclosure
Home equity or Cash-Out refinance
ceases to be owner-occupiedProne
Lease of property
Discovery of misrepresentation of
fraud
Terms of Repayment
Repayment of loan balance Himin
proceeds are not sufficient to repay balance, it can be
reduced to available net proceeds at sale
Repayment of full amount of assistance
lent of full amount of assistance.Repa'
Repayment of full amount of assistance
Repayment of full amount of assistance.
Net proceeds are defined by HUD as the sale price less closing costs and mortgage payoff
3.
4
Refinance Loans: The Homebuyer Assistance Program will approve a refinance loan for a
HAP buyer when the refinance as the payment remains affordable and it will either 1)
lower the interest rate at a minimum 1.5% or 2) reduce the loan term .
Non-Assumable: The loan from the City of Denton is not assumable. The loan must be
paid in full upon the sale or transfer of the property.
PROCESS TO RECEIVE ASSISTANCE
The following is the process to receive assistance if you meet all the eligibility criteria:
1.Contact a HAP Participating Lender from the approved list provided by Community
Development or available on website at https://www.citvofdenton.com/en-
us/residents/services/housing-assistance/home-buyer-assistance. The lender will
determine if you qualify for a mortgage loan and determine your preliminary eligibility for
the program. Your mortgage company will submit the necessary paperwork to the
program for consideration under the HAP program. A preliminary approval is good for
three months and can be extended for an additional two months with a signed earnest
money contract.
2.Contact a Participating Realtor from the approved list approved list provided by
Community Development or available on website at https://www.cityofdenton.com/en-
us/residents/services/housing-assistance/home-buyer-assistance. The realtor can assist
you in finding your home, based on the lender’s loan qualification. Once you have selected
your home, the realtor can also assist you in entering into a purchase agreement. Please
note that it is not necessary to utilize the services of a realtor to receive assistance.
HAP lender will submit your HAP application. Once you have obtained preliminary loan
approval and entered into a purchase agreement, your lender will submit your application
to the program for down payment and closing costs assistance. You will NOT have to
apply directly to the City.
3.
4. Attend an 8-hour HUD, or Fannie Mae approved homebuyer education workshop.
Agencies that currently offer homebuyer education classes in the Metroplex is in
Attachment 2
City of Denton Community Development
601 E. Hickory St., Suite B Denton, Texas 76205
(940) 349-7726 or (940) 349-7236 5 ADA/EOE/ADEA - TDD (800) 735-2989
Community Development
Homebuyer Assistance Program
2020-22 Program Years
When the buyer's application is received, the Community Development Office will begin
processing the request for assistance. An outline of our functions follows:
5.
A. Information is reviewed for completeness and accuracy, and an eligibility check is
performed.
B. Review independent home inspection and request any needed repairs. Conduct a
visual assessment of pre-1978 houses to determine presence of deteriorated paint.
Conduct an environmental review on the property.
C. Determine the amount of HAP assistance from Settlement Statement and wire funds
to the title company. Assistance is subject to completion of repairs. Notify Lender,
Title Company, and buyer of assistance.
D. Conduct a final inspection of the property.
E. Prepare and submit HAP Deed of Trust and Promissory Note to the title company for
closing.
CLOSING REQUIREMENTS
On the day of closing, the buyer(s) wi11 be required to sign the following legal documents for the
HAP program.
1.Promissory Note: The promissory note states that the buyer(s) must comply with the
following conditions:
a. Buyer(s) agrees to reside in the house for the term of the forgivable loan of five (5)
years from the date of the promissory note.
b. Buyer(s) agrees to maintain the property in safe and sanitary condition.
c. Buyer (s) agrees to pay all mortgage payments, taxes, and other assessments on the
property in a timely manner.
2. Deed of Trust: A security instrument that allows the City of Denton to place a lien on the
property for the term of the loan. At the end of the loan term, the entire grant will be
forgiven. At that time, the City of Denton will file a Release of Lien with the Denton County
Clerk's Office.
OTHER DISCLAIMERS
•
•
•
Applicants are subject to all program requirements and guideline changes. Guidelines are
subject to change without notice.
Programs are subject to availability of funds. If there are no funds available, potential
applicants will be placed on a waiting list.
This information is intended to give applicants a quick overview of the program
requirements. Not all program and eligibility requirements are included.
City of Denton Community Development
601 E. Hickory St., Suite B Denton, Texas 76205
(940) 349-7726 or (940) 349-7236 6 ADA/EOE/ADEA - TDD (800) 735-2989
Community Development
Homebuyer Assistance Program
2020-22 Program Years
NON-DISCRIMINATION REQUIREIVIENTS
DISPUTE
The program will be implemented in ways consistent with the Title VIII of the 1968 Civil Rights
Action as known as the Federal Fair Housing Law. The law makes illegal any discrimination in the
sale, lease or rental of real property based on race, color, religion, handicap, national origin,
familial status or gender.
Any applicant denied assistance from has the right to appeal the denial. Complaints concerning
the program should be made in writing to Community Development. If unresolved in this manner,
a formal appeal must be made in writing on a form provided by the Division and filed with the
Community Services Manager. If needed, a meeting will be scheduled between the applicant, the
Housing Programs Manager, and the Community Services Manager. A written response to the
applicant will be made within thirty (30) working days.
CONFLICT OF INTEREST REQUIREMENTS
In accordance with 24 CFR 92.356 and 24 CFR 570-611, applicants can be denied participation in
the City’s Homebuyer Assistance Program if a conflict of interest exists. A conflict of interest exists
if an applicant is an employee, agent, consultant, officer, elected official and appointed official of
the City of Denton and if within the past 12 months, and of the following three statements applies
to any of the applicants:
1.
2.
3.
Exercises or who has exercised any function or responsibilities with respect to funds for
this program.
Participates or has participated in the decision-making process related to funds for this
program.
Is or was in a position to gain inside information with regards to program activities.
PROGRAMMATIC WAIVERS
The City of Denton repair programs must follow specific guidelines required by the funding source
to assure proper administration and management. If an applicant feels that their circumstances
require special consideration, a request may be made in writing, waiving from the usual
requirements. All waiver requests must be requested in writing and should specify the program
requirement(s) to be considered for waiver and state the applicant’s reason(s) or special
circumstances why they believe a waiver should be approved. The Community Services Manager
will review requests on a case-by-case basis.
The City Manager or his designee, upon determination of a good cause, may waive any guidelines
not otherwise required by the funding source, City ordinance, or policy. Applicant will be notified
in writing of the final decision.
City of Denton Community Development
601 E. Hickory St., Suite B Denton, Texas 76205
(940) 349-7726 or (940) 349-7236 7 ADA/EOE/ADEA - TDD (800) 735-2989
Community Development
Homebuyer Assistance Program
2020-22 Program Years
APPEALS PROCESS
An appeal of a program decision may be in made in writing to Community Development using
the contact information below. A written response to any appeal will be completed and mailed
within 15 days from the receipt of the written appeal. Documentation of the appeals will be
placed in the appropriate project files.
City of Denton Community Development
601 E. Hickory St., Suite B Denton, Texas 76205
(940) 349-7726 or (940) 349-7236 8 ADA/EOE/ADEA - TDD (800) 735-2989
Community Development
Homebuyer Assistance Program
2020-22 Program Years
ATrACHMENT I
The effective dates and limits in Attachment 1 remain in effect until HUD issues new limits.
Effective Date: 7/1/2020
Maximum Income Limit - 80%:
Family Size 1 1-person
lncome Limits I $48,300
2-person
$55,200
3-person
$62, 100
4-person
$68,950
Family Size 5-person
Income Limits I $74,500
6-person
$80,000
7-person
$85,500
8-person
$91,050
65% Income Limit:
Family Size 1 1-person
Income Limits $ 39,250
2-person
$44, 850
3-person
$50, 450
4-person
$56,050
Family Size 5-person
Income Limits $ 60,500
6-person
$65,000
7-person
$69,500
8-person
$73,950
HOME HOMEOWNERSHIP VALUE LIMITS
Effective: 4/1/2020
Existing Homes 1 New Homes
$253,000 $270,000
City of Denton Community Development
601 E. Hickory St., Suite B Denton, Texas 76205
(940) 349-7726 or (940) 349-7236 9 ADA/EOE/ADEA - TDD (800) 735-2989
Community Development
Homebuyer Assistance Program
2020-22 Program Years
ATrACHMENT 2
List of Homebuyer Education Classes available in the Area:
Name of /Vency Avai Phone Number to Register
Dallas Home Loan
Counseling Center
Three days in the ( 214)819-6060or
evening in English and I www.dallascountv.org/department/
Spanish I hhs/homeloan.html
First Saturday of every
month in Dallas. Classe:
available in English &
Spanish
www.transformanceusa.org/
transformance-
homebuyer-workshop or (800) 249-2227
Transformance
https://bcloftexas.org/homeownersh ip/
classes
or (214) 688-7456
BCL of Texas Saturday class in Dallas
Tarrant County
Housing Partnership
Classes Available in
English and Spanish in
Arlington and Fort
Worth
www.tchp.net/programs services/
education.html
or (817) 924 5091
City of Denton Community Development
601 E. Hickory St., Suite B Denton, Texas 76205
(940) 349-7726 or (940) 349-7236 10 ADA/EOE/ADEA - TDD (800) 735-2989
Community Development
HOME REPAIR PROGRAM GENERAL GUIDELINES
2020-2022 Program YearsDENTON
INTRODUCrION
The objective of the City of Denton home repair programs is to aid low and moderate-income
homeowners with essential emergency repairs, structural accessibility modifications, repairs to
some or all the home’s major systems, or major repairs completed through rehabilitation or
reconstruction. The programs are intended to assist income qualified owners who cannot afford
to complete the repairs themselves. Programs include:
• Minor Repair Program (MRP)
• Major Systems Replacement Program (MSRP)
• Home Improvement Program (HIP)
As part of the assessment process, staff work with homeowners to determine the repairs that
will need to be completed on the property. During the inspection, staff will evaluate the condition
of the home as well as the impact of not addressing some of the necessary repairs.
WHO IS ELIGIBLE?
As a homeowner, you may be eligible for assistance under this program if you meet all the
following eligibility criteria :
HOME/PROPERTY ELIGIBILITY
• Your home must be a single-family dwelling unit located within the city limits of Denton.
•You must own (hold fee simple title to the property) and live in your home as your
principal residence on a year-round basis for the past 2 years and you have no intention
to market, rent, or sell the property.
•For MRP & MSRP only: Additional forms of ownership interest under which an owner
may qualify for assistance can include:
o Life estates: under which the occupant has the right to live in the housing for the
remainder of his or her life and does not pay rent.
o Inherited property: where title has been passed by inheritance to several heirs,
not all of whom reside in the housing.
o Living Trust: where the owner of a property has conveyed his or her property to a
trust for his or her own benefit or the benefit of a third-party beneficiary.
•For MRP only: NOTE: For mobile homes, you must have owned and lived in your mobile
home for not less than one year, and the mobile home must be in the city limits of Denton
for not less than one year. The Owner must provide proof of these requirements.
•Your home requires an urgent repair or code deficiencies, which if left unattended, would
jeopardize the health and/or safety of the occupants; or, your structure requires
necessary modification(s) to make structure accessible to meet a medical or physical
disability.
•Structure must be more than five (5) years old.
EFFECriVE: 10/01/20
Community Development
HOME REPAIR PROGRAM GENERAL GUIDELINES
2020-22 Program Year
(HIP Only) Your property must meet all zoning and environmental regulations including
floodplain, historical, lead-based paint, etc. PropertIes in the 100-year floodplain or
floodway are not eligible for this assistance.
•You must not be delinquent on any property taxes to any taxing entity in Denton County.
For MRP & MSRP only: This does not include accounts where payment arrangements are
up to date, proof of arrangement must be provided. Elderly/disabled homeowners who
have established payment plans or have signed up for tax deferral are not subject to this
requIrement.
INCOME ELIGIBILITY
• Household income cannot exceed 80 percent of the Area Median Income Limits, adjusted
for family size. The current eligible income limits are provided in Attachment I.
Your total assets (excluding your home) do not exceed $50,000 (MRP, MSRP) or $100,000
(HIP). Assets include available cash, checking and savings accounts, stocks, bonds and
other assets that can be accessed like cash.
PROGRAM ELIGIBILITY
• You must complete the application process, your application must be approved, and the
repair(s) must be eligible (Page 3).
•You must be a United States citizen or legal resident alien.
• You have not exceeded maximum limits for financial assistance from a Community
Development applicable home repair program (Page 4). This requirement may be waived,
see catastrophic1,
OTHER FREQUENTLY ASKED QUESTIONS
• Do I need Good Credit? For programs involving loans (HIP Only), 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. For HIP only, the
following also applies:
o Your mortgage payment needs to be current and up to date.
o 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.
•Will a Lien be placed against my property? HIP only rehabilitation and reconstructions,
liens are in place for a period from 5-10 years based on the type and cost of the project.
ICatastrophic - extreme life-changing event that results in permanent, substantial loss of household
income often time-related to a death, retirement (must be 62 years of age or older) or a permanent
disability. The loss of income must be from an income-earning household member(s). Note: Loss
of employment (voluntarily or involuntarily) is not considered a “permanent loss."
City of Denton Community Development
601 E. Hickory St., Suite B Denton, Texas 76205 ADA/EOE/ADEA - TDD (800) 735-2989
(940) 349-7726 or (940) 349-7236 2 Pub. 10/2020
Community Development
HOME REPAIR PROGRAM GENERAL GUIDELINES
2020-22 Program Year
WHAT TYPE OF REPAIRS ARE ELIGIBLE?
•
Generally, repairs or modifications to achieve accessibility that is urgently needed to make the
housing accessible, safe, sanitary, or habitable. The City of Denton will complete an evaluation of
the home to determine the extent of the repair need and if requested repair is eligible.
Repairs that can be completed for $10,000 or less are eligible for Minor Repair Program
(MRP) assistance.
o replacement of failed plumbing fixtures
o clogged/broken sewer lines
o damaged or exposed electrical wiring, switches, outlets
o leaking roofs
o Repairs and/or modifications to a structure as necessary to allow accessibility to
accommodate a disability when other means are not available to allow
accessibility; i.e. building a wheelchair ramp, widening doorways to rooms that
must be accessible for living, etc.
Repairs that can be completed for $25,000 or less are eligible for Major System Repair
Program (MSRP) assistance.
o Electrical systems
o Plumbing systems, including water and/or sewer lines
o Roof repairs or replacement
o Heating, Ventilation, and Air Conditioning (HVAC)
o Pier and Beam foundation stabilization, approved on a case-by-case basis
Repairs that will be greater than $25,000 are eligible for Home Improvement Program
(HIP) assistance. There are two types of HIP2 assistance:
1. Rehabilitation – Repairs are made to the house to correct code violations and
make needed repairs when a house is in relatively good condition.
2. 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.
2The homeowner may need to arrange for relocation while the repair takes place
There is no guarantee that the full amount will be awarded. The amount of the award will solely
be determined by the City based on the repair(s) approved. If the bid for an approved repair is
more than the maximum allowable funds, the project will not be eligible.
Note: When a repair is covered by an insurance policy and only a portion of the cost to repair is
covered, the owner must sign over insurance claim payment(s) to the City of Denton before work
may begin. Owner insurance funds will be deposited into an escrow account and will be expended
first as contractor payments are approved. If the owner has already spent insurance funds on
repairs, the owner must provide proof of payment and detailed documentation of work completed
before a decision can be made if the repair is eligible.
City of Denton Community Development
601 E. Hickory St., Suite B Denton, Texas 76205
(940) 349-7726 or (940) 349-7236 3
ADA/EOE/ADEA - TDD (800) 735-2989
Pub. 10/2020
Community Development
HOME REPAIR PROGRAM GENERAL GUIDELINES
2020-22 Program Year
WHAT TYPE OF REPAIRS ARE INELIGIBLE?
•Repairs that are only cosmetic in nature are not eligible. However, some cosmetic repairs
may be carried out under the program in areas where a project repair has been completed
and only when necessary to make the immediate areas match (as close as possible) the
surrounding area. Example: floor covering to a complete room when a repair disturbed
only a small section of flooring.
•
•
•
Perils covered by insurance claims are not eligible for funding from this Program except
as described in the ''Note" section (Page 3).
Repairs to a second item where another one is working may not be eligible except to
prevent additional deterioration.
Unsafe and substandard structures that cannot be made safe for habitation within the
maximum program funding limits described below will not be eligible for assistance. The
owner will receive a letter notifying of the hazards and why assistance is being denied.
Under such circumstances, the City will recommend a household seek safe housing.
WHAT ARE THE MAXIMUM LIMITS FOR THE PROGRAM?
The City of Denton has maximum limits that can be allocated to a project. If the project repairs
cannot be assisted within the maximum-limits allowed the project would not be eligible.
Maximum funding per application for owner-occupied single-family structures
Home Improvement ProgramaMinor Repair Program ra m
Up to $25,000)Varies by project
•Limited Funds: Staff responds to requests for repairs on a first-come-first-served basis
from the date the completed application is received. A specific amount of funding has
been set up for each program year beginning August 1st. Once all program funds are
expended, no applications will be considered until additional funds are available.
(MRP Only): Homes Built Prior to 1978 may only be eligible for up to $5,000 for approved,
eligible repairs. Repair(s) costing over $5,000 are not eligible if the repair triggers Interim
Controls for Lead-Based Paint rules and regulations. (Regulatory Basis: 24 CFR 92.355,
92.508(a)(3)(iv), and 24 CFR Part 35
Maximum Repairs: (MRP Only): A Lifetime Maximum of 5 repairs is available for any one
structure and/or household. (MSRP Only): A Lifetime Maximum of 1 repair is available
for any one structure and/or household. (HIP Only): A Maximum of 1 repair is available
for any one structure and/or household while under a current HIP lien.
•
•
•
•
Eligible housing units may only be approved for MRP assistance once in a 12-month
period, MSRP assistance one time, and may only be approved for HIP if not under a
current lien with a previous HIP reconstruction or renovation .
Once the approved repairs are completed and the contractor(s) receives final payment,
no additional repairs can be requested or approved.
City of Denton Community Development
601 E. Hickory St., Suite B Denton, Texas 76205
(940) 349-7726 or (940) 349-7236
ADA/EOE/ADEA - TDD (800) 735-2989
Pub. 10/20204
Community Development
HOME REPAIR PROGRAM GENERAL GUIDELINES
2020-22 Program Year
HOME Homeownership Value Limits (HIP Only): Sale price and value are subject to
HOME Homeownership Value Limits. The current effective date and limits can be found
in Attachment I and remain in effect until HUD issues new limits
•
HOW DO I APPLY?
WHAT HAPPENS AFTER I APPLY?
1. Contact the Community Development office for an application and repair inspection.
2. Complete the application.
3. Schedule application interview and submit required documentation.
1.
2.
Property will be inspected to determine eligibility.
Community Development staff will verify and approve all the application information,
environmental restrictions, and eligibility under federal regulations. 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 .
Owner will receive verbal and/or written notice of the date application is accepted or
rejected along with details of the decision if the application is rejected.
3.
If owner, property, and repair are eligible:
The Texas Historical Commission may have to be notified for any home 45 years or older.
When painted surfaces will be affected in a house built before 1978, the area will be
tested for lead-based paint. A lead-based paint inspection and/or risk assessment shall be
conducted by a licensed risk assessor. If a home is found to have lead-based paint hazards,
hazard reduction techniques will be utilized.
Work write-up or plans will be completed.6.
7.(HIP Only) Owner will review and approve work write up or plans.
8.Project is sent out to bid to contractors. Eligible Bids are approved by the City.
(HIP Only) Owner selects contractor3 from eligible bids4.
10. (HIP Only) Contracts are prepared by City. Contracts are then reviewed and signed by
owner(s) and contractor.
11. Repair work begins.
12. (HIP Only) Owner completes the “Successful Homeownership” class.
13. Repair work is completed.
14. Owner complete a walk-through the house with staff.
15. Upon final inspection approval, the contractor will submit an invoice. The payment
request will be processed upon project approval, and the contractor can expect payment
within 15 working days from date invoice was approved.
16. (HIP Only) Owner updates or obtains appropriate homeowner’s insurance.
17. (HIP Only) The contractor provides a one-year warranty for work completed. After this
City of Denton Community Development
601 E. Hickory St., Suite B Denton, Texas 76205
(940) 349-7726 or (940) 349-7236
ADA/EOE/ADEA - TDD (800) 735-2989
Pub. 10/20205
Community Development
HOME REPAIR PROGRAM GENERAL GUIDELINES
2020-22 Program Year
period, it is the responsibility of homeowner to complete all repairs.
18. (HIP Only) Owner loan payments begin about one month after the project is completed.
3 For HIP, only contractors who carry a minimum of $100,000 1iability insurance and workman’s
comp. may perform work.
4 if the bid for the approved repair is more than the maximum allowable funds, the project will not
be eligible and the City of Denton will be unable to approve the repair.
WILL THE REPAIRS NEED TO BE PAID BACK?
•Home Improvement Program. For HIP rehabilitation and reconstructions, liens are in
place for a period from 5-10 years based on the type and cost of the project. For the term
of the lien, you need to be able to pay your monthly loan payment, continue to live in the
house, pay property taxes, maintain the house and budget to include future maintenance,
repair and replacement of appliances, and maintain a homeowner’s insurance policy that
covers all repairs for the HIP assisted home.
o There are two types of financial assistance in HIP are provided in Attachment 2):
•
•
Two-part loan that includes a payable and forgivable loan. The loan is
available in a combination of a payable low interest loan and a forgivable loan
forgiven every month you live in the house over the applicable loan period .
Forgivable loan only. A forgivable loan will be provided to those who are at
the income level below 50% of HUD median income. The loan is 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.
•
•
Minor Repair Program. For MRP assistance does not need to be paid back. It is a grant,
and no lien will be placed on the property.
Major System Repair Program. For MSRP assistance does not need to be paid back. It is
a grant, and no lien will be placed on the property.
OTHER DISCLAIMERS
•
•
•
Applicants are subject to all program requirements and guideline changes. Guidelines are
subject to change without notice.
Programs are subject to availability of funds. If there are no funds available, potential
applicants will be placed on a waiting list.
This information is intended to give applicants a quick overview of the program
requirements. Not all program and eligibility requirements are included.
City of Denton Community Development
601 E. Hickory St., Suite B Denton, Texas 76205
(940) 349-7726 or (940) 349-7236
ADA/EOE/ADEA - TDD (800) 735-2989
Pub. 10/20206
Community Development
HOME REPAIR PROGRAM GENERAL GUIDELINES
2020-22 Program Year
NON-DISCRIMINATION REQUIREMENTS
DISPUTE
The program will be implemented in ways consistent with the Title VIII of the 1968 Civil Rights
Action as known as the Federal Fair Housing Law. The law makes illegal any discrimination in the
sale, lease or rental of real property based on race, color, religion, handicap, national origin,
familial status or gender.
The contractor’s work will be monitored by the applicant, City of Denton staff that may include
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. (HIP Only) 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 any dispute cannot be resolved, the Housing Programs Manager shall consider all pertinent
facts and shall decide an appropriate course of action to resolve the dispute.
CONFLICT OF INTEREST REQUIREMENTS
In accordance with 24 CFR 570-611, applicants can be denied participation in a City Program if a
conflict of interest exists. A conflict of interest exists if an applicant is an employee, agent,
consultant, officer, elected official and/or appointed official of the City of Denton and if within
the past 12 months, and of the following three statements applies to any of the applicants:
1.
2.
3.
Exercises or who has exercised any function or responsibilities with respect to funds for this
program.
Participates or has participated in the decision-making process related to funds for this
program
Is or was in a position to gain inside information with regard to program activities.
PROGRAIVIIVIATIC WAIVERS
The City of Denton repair programs must follow specific guidelines required by the funding source
to assure proper administration and management. If an applicant feels that their circumstances
require special consideration, a request may be made in writing, waiving from the usual
requirements. All waiver requests must be requested in writing and should specify the program
requirement(s) to be considered for waiver and state the applicant’s reason(s) or special
circumstances why they believe a waiver should be approved. The Community Development
Manager will review requests on a case-by-case basis.
The City Manager or his designee, upon determination of a good cause, may waive any guidelines
not otherwise required by the funding source, City ordinance, or policy. Applicant will be notified
in writing of the final decision.
City of Denton Community Development
601 E. Hickory St., Suite B Denton, Texas 76205
(940) 349-7726 or (940) 349-7236
ADA/EOE/ADEA - TDD (800) 735-2989
Pub. 10/20207
Community Development
HOME REPAIR PROGRAM GENERAL GUIDELINES
2020-22 Program Year
APPEALS PROCESS
An appeal of a program decision may be in made in writing to Community Development using
the contact information below. A written response to any appeal will be completed and mailed
within 15 days from the receipt of the written appeal. Documentation of the appeals will be
placed in the appropriate project files.
City of Denton Community Development
601 E. Hickory St., Suite B Denton, Texas 76205
(940) 349-7726 or (940) 349-7236 8
ADA/EOE/ADEA - TDD (800) 735-2989
Pub. 10/2020
Community Development
HOME REPAIR PROGRAM GENERAL GUIDELINES
2020-22 Program Year
ATrACHMENT I
The effective dates and limits in Attachment 1 remain in effect until HUD issues new limits.
INCOME ELIGIBILITY FOR ALL PROGRAMS
Effective Date: 7/1/2020
Maximum Income
$48, 300
$55,200
$62, 100
$68, 950
$74, 500
$80,000
$85,500
$91,050
HOME HOMEOWNERSHIP VALUE LIMITS FOR Home Improvement Program only:
Effective: 4/1/2020
Existing Homes
$253,000
City of Denton Community Development
601 E. Hickory St., Suite B Denton, Texas 76205
(940) 349-7726 or (940) 349-7236
ADA/EOE/ADEA - TDD (800) 735-2989
Pub. 10/20209
Community Development
HOME REPAIR PROGRAM GENERAL GUIDELINES
2020-2022 Program YearsDENTON
ATrACHMENT 2
Home Improvement Program: Project Payment for Households
Denton Are Median Income
Extremejy-Low Income < 30%
Very-Low Income >30% – 50%
Low Income >50% - 65%
Moderate Income >65%-80%
Payable
0%
0%
10%
20%
Forgivable
100%
100%
90%
80%
Term of Loan
5-10 years
5-10 years
Home Improvement Program: Elderly Households (62 years of age or older)
Denton Are Median Income
Extremely-Low Income < 30%
-Low Income >30% - 50%Ve
Low Income >50% - 65%
Moderate Income >65%-80%
Forgivable
100%
100%
100%
100%
Term of Loan
5-10 years
5-10 years
5-10 years
5-10 years
EFFECrivE: 10/01/20