2002-301s:wur nocvmmuWmio~mex~are ~ aaP s amovrce.aa
ORDINANCE NO. Ar,- -301
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS,
APPROVING GUIDELINES FOR OPERATION OF THE CITY OF DENTON HOME
IMPROVEMENT & OPTIONAL RECONSTRUCTION PROGRAM AND ELIGIBILITY
CRITERIA; AUTHORIZING EXPENDITURES IN EXCESS OF $25,000 FOR PROJECTS
MEETING PROGRAM GUIDELINES AND CRITERIA; AND PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, the City Council of the City of Denton recognizes the need to assist low and
moderate income families in securing safe, sanitary and decent housing; and
WHEREAS, the City of Denton participates in a Home Improvement & Optional
Reconstruction Program administered by the City of Denton Community Development Office and
funded through a federal grant from the Department of Housing and Urban Development; and
WHEREAS, the City Council deems it to be in the public interest to approve the Program
Eligibility Criteria for the 2002 Program year; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. That the City Council approves the Home Improvement & Optional
Reconstruction Program Guidelines and Home Improvement & Optional Reconstruction Program
Eligibility Criteria which are attached hereto and made a part of this ordinance for all purposes as
Exhibit "A" and authorizes the City of Denton Community Development Office to administer this
program.
SECTION 2. That the City Council authorizes the expenditure of funds in excess of $25,000
by the Community Development Office for projects meeting the Program Guidelines and Criteria,
subject to compliance with competitive bidding laws, where applicable.
SECTION 3. That this ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the = day of 2002.
G;t.~ Aft~
EULINE BROCK, MAYOR
S: w. nowmmuwmiv,owsw QM2 wr oar cco~
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY: aLJ
APPROVED AS TO LEGAL FORM:
HERBERT L. PROUTY, CITY ATTORNEY
BY:
Page 2 of 2
Home Improvement &
Optional Reconstruction
2002
Program Guidelines
Available in Spanish 1 Disponible en Espanol
Effective Date: 10/01/2002
4
Applicant(s) Is
Subject To All
Guideline Changes
TABLE OF CONTENTS
Introduction
Description of Program Procedures .............................................Page #
MomeImpirovementProgram.......... _
1.
Eligibility Requirements
...................8
II.
Application Processing
.................10
III.
Description of Financial Assistance
.................11
IV.
Feasibility for Rehabilitation Process
.................14
V.
Appeals Provision
.................16
VI.
Contractor Selection and Monitoring
.................16
VII.
Payment to Contractor
.................18
VIII.
Contractor Debarment
.................18
Optional WconstructionTrogram
I.
Purpose
....20
II.
Designated Authority
....20
III.
Implementation Process
....20
IV.
Eligibility Requirements
....22
V.
Feasibility for Reconstruction
....23
VI.
Selection of Recipients for Assistance
....23
VII.
Allowable Expenses & Categories of Financial Assistance
....23
VIII.
Rehousing Agreement
....27
LX
Final Inspection - Certificate of Occupancy
....27
A endices..................
Appendix 1 Qualifying Income Limits and Ranges for the City of
Denton's Federally Assisted Programs .............................29
Appendix 2 Target Neighborhoods Map .................................................30
Appendix 3 Optional Reconstruction Program Application and
Temporary Relocation Questionnaire .................................31
Appendix 4 Optional Reconstruction Program Rehousing Agreement
for Applicants ......................................................................33
INTRODUCTION
The City of Denton Home Improvement and Optional Reconstruction Programs
are designed to assist low and moderate-income families in securing safe, sanitary
and decent housing. This program's objective is to assist eligible homeowners to
rehabilitate single-family owner-occupied houses by making needed repairs with
the first priority being to correct code violations. When a determination is made
that the structure is not feasible to rehabilitate to minimum standards under the City's
Home Improvement Program the applicant may be eligible for assistance through the
Optional Reconstruction Program. The Optional Reconstruction Program provides
funds to demolish existing dilapidated dwellings and reconstruct adequate, decent,
safe and sanitary replacement dwellings.
The Home Improvement and Optional Reconstruction Programs are administered
by the City of Denton's Community Development Division and are funded by
federal grant from the Department of Housing and Urban Development.
The following pages contain a detailed description of these programs including
policies and procedures. The purpose of these guidelines is to explain to potential
applicants and the citizens of Denton, the Home Improvement and Optional
Reconstruction Programs and their levels of assistance. For further information or
clarification of the guidelines, contact the Community Development Division.
Community Development Division
100 West Oak Street, Suite 208
Denton, Texas 76201-4144
(940) 349-7726
7
Home Improvement Program
Description of Program Procedures
1. Eligibility Requirements -Eligibility requirements must be met for both the applicant household
and the structure. Eligibility for assistance is completed in two phases as described in Sections I.A. and
I.B. below.
A. Aonlicant/Household Eligibility Requirements Are:
Must be a United States citizen or a legal resident alien.
2. Must have owned and occupied the single-family-dwelling unit for not less than five years for
the Home Improvement and Optional Reconstruction Programs. (The period of time an
applicant has lived in a property under a lease for purchase/ or contract for deed form or
purchase may be taken into consideration in calculating the five years.)
3. Must hold a Fee Simple Title to the property.
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 rehabilitation assistance. The
seller must provide the purchaser with a warranty deed on the property to satisfy the
eligibility requirement of item I.A.3. above.
b. If applicant(s) inherited property, the legal documents establishing applicant(s) as the
sole deed holder must be on file in the Real Property Records of the Denton County
Clerk's Office. If applicant can provide proof of residency in this property for the most
recent five (5) years, the five-year ownership requirement may be waived.
4. Must meet program's income limits.
a. Gross annual total household income is at or below 80 percent the current Area Median
Income (AMI) adjusted for family size. Current maximum income limit by household
size is:
Number of People
80% of the AMI
Living in Household
Maximum Income Limit
1
$37,250
2
$42,550
3
$47,900
4
$53,200
5
$57,450
6
$61,700
7
$65,950
8
$70,200
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 home is excluded in total assets
calculation.
NOTE 2: Annual income and asset income are calculated using HUD's most current
Section 8 Income guidelines and rules as established in the Technical Guide for
Determining Income.
Must be in good credit standing with and exhibit the financial ability to pay creditors
including the following basic housing expenses:
a. Home Mortgage Payment including the loan with the City of Denton to rehabilitate
property
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. Homeowner may be required to apply for a loan to provide the program required contribution
(see Section IH.A.).
7. Pre-existing mortgage note balance cannot exceed 80 percent of the property's appraised
value as set by the Denton Central Appraisal District (cannot exceed 70 percent of the
property's appraised value to participate in the Optional Reconstruction Program).
NOTE: The City of Denton reserves the right to request an independent market analysis.
8. Applicants denied assistance due to poor credit history maybe reconsidered for the program
upon verifiable completion of six (6) consecutive months of successful debt management with
Consumer Credit Counseling of North Texas or other debt management companies with
written approval.
B. Property Eligibility Requirements
1. Must be classified as a single-family-dwelling unit and be situated in a Targeted
Neighborhood within the city limits of Denton (Refer to Targeted Neighborhoods Map -
Appendix 2).
2. Must exhibit building code deficiencies that make the structure unsafe or unsanitary.
3. May not have existing property code violations (such as high weeds, trash, debris, junk
vehicles, etc). Any liens placed on properties for correcting any code violations must be paid
in full by the time application processing occurs.
4. Must be serviced by a City-approved water supply, sanitary sewer and electrical system.
Must meet all of the City of Denton's Land Development Codes.
6. Must be feasible for rehabilitation as defined in Section IV of the Program Procedures.
7. 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, the applicant must obtain a homeowner's insurance policy quote (from any
reputable insurance agency). The quote should be based on the after-rehabilitation
structural status. Applicant should inform The Insurance agent that the structure will
be rehabilitated to meet all current Building, Electrical, Plumbing and Fire-Safety codes.
Applicant must provide this quote to the Community Development Division and sign a
NOTICE OF INTENT AND AGREEMENT TO OBTAIN A HOMEOWNER
INSURANCE POLICY to satisfy eligibility required in item I.B.7.
8. A property that has been previously rehabilitated with Federal or State grant funds after
March 1995 is not eligible for assistance. Properties having received assistance before April
1995 may be eligible for additional assistance after eight (8) years from the date of the last
assistance.
9. With the exception of 1.B.8. above, households previously assisted with HOME funds maybe
eligible for rehab assistance based on availability of funds and federal regulations.
11. Application Processing
A. To be placed on the waiting list, applicants must meet the following guidelines:
1. Household's total gross annual income does not exceed current program income limits.
2. Owner is the occupant of a single-family dwelling unit for not less than three years.
3. Property is located in a Targeted Neighborhood (see Appendix 2)
4. Applicant must complete a Waiting List Application Form and attach a copy ofproperty deed.
(Waiting List Application Forms are available at the Community Development Division, 100
West Oak Street, Suite 208, Denton, Texas, 76201-4144, 940-349-7726.)
B. A household is assigned the next available number on the waiting list, in the order, by time and
date the completed waiting list application is received by the Community Development Division.
C. When applicant reaches the top of the waiting list, s/he will be notified in writing to complete the
application process. The letter of notice to apply for assistance requests applicant to provide the
following items:
• Copy of Deed or Warranty Deed for the property to be rehabilitated (applicant must be deed holder)
• Name/mailing address of your mortgage company (if you have a mortgage payment)
• Name/mailing address of your Homeowner insurance policy provider with "paid" receipt or canceled
check
• Current year's "paid„ Property Tax receipts from DISD, City and County tax offices.
• Most current Notice of Appraised Value from the Denton Central Appraisal District
• Current year's Income Tax Return with W-2's, 1099's, etc. for each household member who filed tax
returns
• Social Security number(s) for household members who receive Social Security benefits
Most current income statement (if you receive Social Security benefits)
• Paycheck stubs for last four weeks for each employed household member
• Employers' names/addresses for each employed household member
• Names and addresses of retirement income or any other income sources (ALL INCOME SOURCES
MUST BE DISCLOSED-RETIREMENT, RENTALIHAP INCOME, AFDC, FOOD STAMPS, ETC.)
10
• Divorce decree if you receive child/other support from a divorce or if you were awarded deed to your
property through a divorce
• Two most current months' statements (must include names/addresses/account numbers of all banks,
credit unions, savings banks, IRA accounts, etc. for all household members who have any of these types
of accounts
• Bills for the last twelve months from TXU, CoServe, ONCOR and City Utilities. (If you don't have
copies of the last twelve months bills, TXU, CoServe, ONCOR or City of Denton Utilities will mail you
a summary. Please be sure the summary has your current balance stated.)
NOTE: Deadlines given for contacting the CD office to make an appointment to apply and those given
for submitting application information will be stated in the notice to apply letter (See Section
II.C.). The deadlines will be enforced.
D. Applicant must provide all information requested in H.C. above that applies to his/her household
and complete all required verification forms in the application packet. All provided information
must be current and up to date. Household income will be re-verified prior to contract signing. All
information will be verified by Community Development staff. If any information is found to have
been intentionally falsified, the application will be rejected and the applicant will not be allowed to
reapply to this program.
E. Community Development staff will calculate the gross annual household income and determine the
percent of income spent for housing expenses.
F. 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 for rehabilitation process. Ineligible
applicants will be notified of the reason their application for assistance is being rejected.
111. Description Of Financial Assistance Categories
A. Applicant must attend a credit evaluation meeting with Consumer Credit Counseling Services, Inc.
Also, obtain a loan, or provide from personal funds a personal contribution toward the
rehabilitation of the property. The amount of private funds a household is asked to contribute to
the project is based on a sliding scale as follows:
Moderate (80%-+65%AMI) Income Households = 1% of total project
Low Income (65%-+50%AMI) Households = .75% of total project
Very-Low Income (50%-+30%AMI) Households = .5% of total project
Extremely-Low Income (0-30%AMI) Households = .25% of total project
To be eligible for assistance through the City of Denton's Home Improvement Program a family
must be in good credit standing and exhibit the ability to pay back a rehab loan.
B. The City of Denton will fund the remaining project cost. This City funded portion of the project
has a loan lien period and financial assistance categories for those who qualify for the Home
Improvement Program. The loan lien period categories are based on project cost. The financial
assistance categories are based on the Qualifying Income Limits and Ranges for the City of
Denton's Federally Assisted Programs (see Appendix 1 to these guidelines for current income
limit ranges). A description of the loan lien period and financial assistance categories and their
requirements are:
Loan Lien Period Categories:
Project Cost Less than $10,000 = 5 year lien (60 months)
11
Project Cost Between $10,000 - $25,000 = 10 year lien (120 months)
Project Cost Between $25,001 & up = 15 year lien (180 months)
Financial Assistance Categories:
1. 70 Percent Rehabilitation Loan/ 30 Percent Deferred Payment Loan: Applicants whose gross
annual household income falls above 65 percent up to 80 percent of the area median family
income limits will qualify for this two-part loan;
a. a 3 percent interest loan with the loan amount being based on 70 percent of the total
City-funded project cost amortized over the Loan Lien Period. The lien will not be
released on this part of the loan until all payments are received in full by the City of
Denton; and
b. a deferred payment loan with the loan amount being based on 30 percent of the total
City-funded project cost. A detailed description of the deferred payment loan is found
below at the end of section III.B.4.
40 Percent Rehabilitation Loan / 60 Percent Deferred Payment Loan: Applicants whose gross
annual household income falls above 50 percent up to 65 percent of the area median family
income limits will qualify for this two-part loan;
a. a 3 percent interest loan with the loan amount being based on 40 percent of the total
City-funded project cost amortized over the Loan Lien Period. The lien will not be
released on this part of the loan until all payments are received in full by the City of
Denton; and
In. a deferred payment loan with the loan amount being based on 60 percent of the total
City-funded project cost. A detailed description of the deferred payment loan is found at
the end of section HI.13.4.
20 Percent Rehabilitation Loan / 80 Percent Deferred Payment Loan: Applicants whose gross
annual household income falls above 30 percent up to 50 percent of the area median family
income limits will qualify for this two-part loan;
a. 3 percent interest loan with the loan amount being based on 20 percent of the total City-
funded project cost amortized over the Loan Lien Period. The lien will not be released
on this part of the loan until all payments are received in full by the City of Denton; and
b. a deferred payment loan with the loan amount being based on 80 percent of the total
City-funded project cost. A detailed description of the deferred payment loan is found at
the end of section III.13.4.
4. 10 Percent Rehabilitation Loan / 90 Percent Deferred Payment Loan: Applicants whose gross
annual household income falls at or below 30 percent of the area median family income limits
will qualify for this two-part loan;
a. a 3 percent interest loan with the loan amount being based on 10 percent of the total
City-funded project cost amortized over the Loan Lien Period. The lien will not be
released on this part of the loan until all payments are received in full by the City of
Denton; and
b. a deferred payment loan with the loan amount being based on 90 percent of the total
City-funded project cost. A detailed description of the deferred payment loan is found at
the end of section III.13.4.
12
*DESCRIPTION OF A DEFERRED PAYMENT LOAN
A deferred payment loan shall carry 0 percent interest and continue until the applicant satisfies the
conditions listed in the deed of trust and promissory note executed prior to project start date. There
are no monthly payments. Deferred payment loans are secured by a lien on the property. For each
month the applicant lives on the property, a monthly payment amount established in a promissory
note will be forgiven. If the property is sold or transferred before the lien period expires, the
applicant is credited for every month of residency. The credit is subtracted from the total loan
amount to determine the unforgiven loan balance. The unforgiven balance is owed and becomes
due to the Community Development Program. Amounts received are used as program income.
The City of Denton will be in the first lien position on all rehabilitated dwellings. However, in
situations where first lien position is not feasible, the City will accept a second lien position subject
to the review and approval of the Community Development Administrator. The lien will not be
released unless the following conditions are met:
1. The applicant must reside in the unit for the full period of the lien
2. The property must be maintained to meet City code requirements.
3. Mortgage payments must be met on a timely basis.
4. Home applicant must provide documentation of adequate homeowner's insurance, including
casualty and fire coverage, and the City must be listed as a Mortgagee on the Certificate of
insurance to be notified in case of policy cancellation.
NOTE: The Deed of Trust Contract requires the applicant, upon completion of the
rehabilitation, to maintain and/or purchase, for the full length of time which the City of
Denton will have a lien on property, an insurance policy that: covers all improvements
resulting from the rehabilitation for their full insurable value; provide fire and extended
coverage, including windstorm coverage; provides flood insurance at any time property is in
a flood hazard area. Applicant agrees to comply at all times with the requirements of the 80
percent coinsurance clause; and keep any buildings occupied as required by the insurance
policy.
If within the period of the lien the applicant defaults on their deferred payment loan or the
payable loan, the lien will be called due in full and foreclosure proceedings may be initiated.
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.
C. Repayment Policy for Financial Assistance: The applicant must agree to have a lien placed on
their property until they have satisfied the requirements of the promissory note. The lien will
remain until the loan has been paid in full. If for any reason the loan recipient decides to sell or
rent the property before the lien's terms are all met, the note's balance will become due.
D. In the event the owner(s) passes away prior to the maturity date, or the owner(s) can no longer
reside in the property due to a permanent medical condition, should the legal heirs to the property
decide to sell the property, the amount the City of Denton will settle for will be the lesser of:
a. 75 percent of the property's market value (based on an approved independent appraisal at the
time of sale); or,
b. The payoff balance of the lien due the City of Denton at the time the applicant passed away or
is no longer able to reside in his/her home.
E. Liens will remain in effect until the grantee has met all requirements as specified in the promissory
note. In the event of the sale of the property, any unpaid balance of the loan and the total deferred
13
loan amount will become due immediately. If, in the event of the death of the grantee, a family
member who meets the Program's income limits who takes up residency in the property and who
becomes the sole deed holder of the property may apply to the Community Development Division
for continued assistance with the loan. The assistance level will be based on current-year Program
guidelines and the applicant-owner will be required to sign an Adiustment and Extension of Note
and Lien. Failure to do so can result in default on the loan, the lien will be called due in full and
foreclosure proceedings may be initiated. 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.
F. If, after the loan payback begins, a household experiences a permanent, substantial loss of
household income, an applicant can request a re-evaluation of their total annual gross household
income. This evaluation may result in a decrease in the payable portion of the note. The loss of
income must be from an income-earning household member(s) whose income was used in
determining the original loan assistance category. Please note: Loss of employment (voluntarily
or involuntarily) is not considered a "permanent loss". For purposes 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 II -
Application Processing 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 an 4dustment and Modification of Note and Lien reflecting the
adjustment and/or extension of the note.
IV. Feasibility For Rehabilitation Process
A. A decision as to whether a structure is feasible for rehabilitation is made after a complete
assessment of the following factors.
Completion of a detailed inspection of the property by Community Development staff is
conducted. This inspection includes completing a list of all deficiencies that must be
corrected in order to bring the structure up to minimum program standards (compliance with
HUD's Section 8 Minimum Housing Quality Standards) and City of Denton building codes.
2. 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 limit the total cost of all non-code repairs
for any structure located in a designated 100-year floodplain to not exceed 50 percent of a
property's (structure only) pre-rehabilitation appraised value as set by the Denton Central
Appraisal District.
Determine if the framework and foundation of a structure are stable, or can be made stable
14
through rehabilitation.
4. 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 cml (one milligram per centimeter
squared), or 5000 ppm (parts per million). The reduction techniques used by this program are
described and found in the U. S. Department of Housing & Urban Development's publication,
Guidelines For The Evaluation and Control Of Lead-Based Paint Hazards In Housing, issued
June 1995.
5. 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. The City will follow
the standards consistent with the Community Development Division Replacement Housing
Space Allowances Policy when considering the number of bedrooms needed to avoid
overcrowding.
B. Using all information obtained in items IV.A.1-5. above, a cost estimate and structural evaluation
will be completed. A project with a cost estimate above Program Maximum Limits is not eligible
for rehabilitation assistance. Applicant may be referred to Optional Reconstruction Program.
C. PROGRAM MAXIMUM LIMITS FOR REHABILITATION
A rehabilitation that cannot meet all of the following limit tests is considered cost prohibitive or
not feasible for rehabilitation.
Rehabilitation will not exceed $40 per square foot of total living space (using after
rehabilitation square footage). Exceptions: An additional $10 per square foot, is available, if
the house needs to comply with lead reduction. An additional $10 per square foot, is
available, if house needs to comply with historical requirements.
2. Rehabilitation will not exceed the current Maximum Home Subsidy Limits for Denton as set
by HUD.
3. The after rehabilitation appraised property value plus all costs expended to complete the
project (including the other funds and owners portion) will not exceed the current Single
Family Mortgage Limit for Denton as established by HUD.
D. PROGRAM MIN I- LIMITS FOR REHABILITATION
A structure needing less than $5000 of repairs is not eligible for rehabilitation assistance.
An applicant who feels that s/he has been unjustly denied rehabilitation assistance under the City's
Home Improvement or Optional Reconstruction Program should follow the appeals procedure outlined
in Section V.
V. Appeals Provisions:
A. Request for Waiver: The City of Denton's Home Improvement Program has been developed to
adhere to a set of guidelines in order to assure proper administration and management of the Home
Improvement Program. In the event that an applicant feels that his/her circumstances require
special consideration, s/he can 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
15
reason(s) or special circumstances why s/he believes a waiver should be approved. Requests will
be reviewed by the Community Development Administrator on a case-by-case basis. Applicant
will be notified in writing of the Community Development Division's final decision.
B. Anneals Procedure: Applicants, who have been determined by the Community Development
Administrator to be ineligible for rehabilitation, may appeal this decision to the Department
Director. A written appeal must be submitted.
The Department Director shall issue a written response within fifteen days of receiving the request.
VI. Contractor Selection And Monitoring
All housing rehabilitation recipients are responsible for finding a contractor who will develop a proposal
to make the necessary repairs to their home. Your contractor's proposal must be submitted to the
Community Development Division within 30 days from the date you receive the work order write-up
prepared by the Community Development Housing Inspector.
Contact any reputable and experienced contractor and request a bid for the required work.
IF YOU HAVE ANY TROUBLE FINDING A CONTRACTOR, contact any of the following places for
assistance:
• Your local Better Business Bureau
• Any friends or neighbors who have had remodeling done to their properties.
• Chamber of Commerce
• Community Development Division Contractor's List
When a contractor comes to look at your home you should:
Show him/her the mandatory work items that have been identified by the Community
Development Housing Inspector.
Advise him/her that the bid proposal must be returned to you or the Community Development
Division for submission to the rehabilitation program on or before the due date.
DO NOT SIGN ANY AGREEMENT WITH THE CONTRACTOR.
Bring the contractor's bid proposal to the Community Development Division at 100 West Oak Street,
Suite 208, where you made your original application. The Community Development Housing
Rehabilitation Inspector or Housing Rehabilitation Specialist will review the proposal to verify that:
1. The contractor is licensed and has all City-required insurance coverages.
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 rehabilitation costs are reasonable.
The contractor you have chosen has not been disqualified (debarred) by any local, State or Federal
government agency.
The bid proposals that are submitted by the applicant will be reviewed by the Community Development
Housing Rehabilitation Inspector to determine if the total bid price is reasonable and under the
16
maximum allowable amount. THE CITY OF DENTON AND THE APPLICANT RESERVE THE
RIGHT TO REJECT ANY AND ALL BIDS.
If the bid proposal selected by the applicant is approved by the Community Development Administrator,
then the Community Development staff shall proceed with the review of all other forms submitted by
the contractor. 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.
Once the contractor has been selected and approved, a construction contract must be signed. Before the
contractor can start work, the applicant must issue a notice to proceed.
The contractor's work will be monitored by the applicant, the 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 rehabilitation work, the City shall take appropriate action in accordance with the provisions of the
construction contract to assure that the applicant is satisfied before making any payment to the
contractor. In the event a dispute cannot be resolved, the Department Director shall consider all
pertinent facts and shall decide an appropriate course of action to resolve the dispute.
Acceptance of Work
1. Final Inspection - In order for the contractor to close out a rehabilitation job, 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 the contractor's release form which states 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 required to submit to the Community Development
Division copies of all warranties and releases of liens from subcontractors and suppliers.
Community Development will not authorize payment to the contractor until these documents are
properly completed and submitted. Community Development staff will make copies of warranties
and other documentation. The applicant will receive original warranty and guarantee documents.
The Community Development Division will retain copies of these documents for the file.
2. Warranty of Work - As stated in the rehabilitation 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. If no repairs are
needed, the contractor will request that the applicant release the contingency payment.
VI1. Payment To Contractor
The contractor shall receive payment, minus the contingency amount, for all completed contracts within
15 working days after final inspection approval. The contingency amount equals 10 percent of the total
contract amount and will be withheld for thirty (30) days from the date of final acceptance by CD staff.
After thirty days, if no additional or warranty work remains, the contractor must request from applicant
an approval to release withheld contingency funds.
A contractor may request interim payments throughout the course of the project. Interim payments will
17
be made available to the contractor upon applicant and inspector approval of any contract work that has
been completed. Contractor will submit a CONTRACTOR REQUEST FOR PAYMENT AND
PERIODIC STATEMENT from the applicant when requesting payments.
An "All Bills Paid" affidavit and release of lien from all subcontractors and suppliers must be submitted
by the contractor to the Community Development Division before final payment can be released to
contractor. All electrical, plumbing, mechanical and roofmg permits and termite inspection report must
also be submitted to the Community Development Division prior to releasing contingency payment to
the contractor.
Vill. Contractor Debarment
A contractor will be declared ineligible to participate in projects funded by the City of Denton's Home
Improvement Program for one or more of the following causes:
1. Failure to complete a project within the prescribed contract period.
2. Failure to complete warranty repairs within a reasonable time period.
3. Failure to use licensed plumbing and electrical subcontractors.
4. Failure to obtain City-required insurance, i.e., general contractor's liability, automobile liability
and builder's risk (if applicable).
5. Failure to complete work in accordance with program specifications and/or accepted standards of
workmanship.
6. Failure to pay all subcontractors working on the project appropriately and/or by not submitting
affidavits of payment signed by all subcontractors.
7. Failure to obtain proper permits for work in progress.
8. Failure to treat applicants with respect and courtesy.
Contractors will be notified of their proposed debarment and will be afforded the opportunity to
comment or appeal the action. All appeals must be made in writing to the Community Development
Division by the 15th day from the date of the notification letter.
Contractors debarred from the Home Improvement Program may no longer contact applicants receiving
CDBG or HOME grant funds with the intent of providing a bid for a project.
18
Optional Reconstruction Program
Description Of Program Procedures
Unless herein stated otherwise, the general operating procedures contained in the City of Denton's
Community Development Home Improvement Program Guidelines will be followed.
1. PURPOSE
A. The City of Denton, Texas, will provide assistance necessary to accomplish the reconstruction
of dwellings not feasible for rehabilitation. The Optional Reconstruction Program will provide
funds to demolish existing dilapidated dwellings and reconstruct adequate, decent, safe and
sanitary replacement dwellings. In addition, the City will also promote the elimination of
slum and blight that exists in the City.
B. Reconstruction payments and assistance will be carried out under the City of Denton's
Community Development Program as an eligible expense from project funds. Assistance shall
be subject to the availability of grant funds and U.S. Department of Housing and Urban
Development (HUD) implementing regulations. Administrative procedures will be modified
to meet any change in rules and regulations of HUD that may occur over time.
11. DESIGNATED AUTHORITY
A. Administrative authority for implementation of the program will rest with the City of Denton's
Community Development Division. This office will serve as the approving office for
rehousing agreements and for 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 reconstruction assistance to be made available to individual
applicants in accordance with the implementing procedures.
C. The Community Development Administrator will be responsible for approval of applicant
eligibility for the program and final approval of selection of applicants to be assisted. This
will be based upon relative need of applicants on the City's list of houses that have been
determined infeasible for rehabilitation under the Home Improvement Program.
III. IMPLEMENTATION PROCESS
Steps in implementing the program will be as follows:
A. Community Development Division maintains the list of applicants to the Home Improvement
Program. When a determination has been made that the structure is not feasible to rehabilitate
to minimum standards under the City's Home Improvement Program. Eligible applicants will
be assisted in the reconstruction of their home. They will be assisted in the Home
Revised 08/26/97 Program Guidelines - Page 1
19
Improvement Program Waiting List order.
B. Applicant is notified that the rehabilitation of the structure has been determined to be
infeasible. Eligibility requirements for the Optional Reconstruction Program must be met for
applicants to be placed on the Optional Reconstruction Program waiting list.
C. Staff evaluates applications for reconstruction assistance as specified in Section VI. Staff
processes applications as possible under funding and staff limitations.
D. Applicant is informed of available assistance.
E. Applicant submits a Optional Reconstruction Program Application & Temporary Relocation
Questionnaire, acknowledging receipt of information explaining the City's program, and
requesting reconstruction assistance to enable applicant to obtain suitable and adequate
housing.
F. Community Development Staff determine whether or not approval of applicant's Optional
Reconstruction Program Application & Temporary Relocation Questionnaire reasonably
may be expected to result in the successful and feasible rehousing of the applicant. In cases
where the applicant's general health or income level would preclude his or her adequate and
responsible operation of a replacement dwelling; and/or cases in which the costs of the
replacement dwelling would be substantially above the costs of typical cases; and to the extent
that the probability of the City reaching its Community Development Program goals would be
endangered due to cost overruns, the applicant's request may be denied. The applicant will be
notified in writing of the determination and, if the request is not approved, the reasons for
denial. When the determination is approval of the applicant's request, a Notice of Approval
will be sent informing the applicant that the City is authorized to enter into a rehousing
agreement with the applicant for a specified Replacement Housing Payment determined
appropriate by the city pursuant to its Reconstruction Policy. Prior to any agreement being
executed between the applicant and the City, the Community Development Division will
comply with the public disclosure and notification/authorization to and from HUD
requirements according to 24CFR Part 70, Section 104(d), Reconstruction and One-for-One
Replacement Housing Requirements.
G. A Rehousing Agreement is executed between the applicant and the City, under the terms of
which the applicant agrees to move permanently and voluntarily from the dwelling on or
before a specified date.
H. Community Development Staff will provide counseling and assistance as needed to applicants
in order to facilitate the applicant's rehousing, including referrals to builders, suppliers, etc.
I. The applicant and the Community Development Division agree to the arrangement and method
of the approved payments, the applicant will execute a contract with a builder for the selected
replacement dwelling. The applicant will also contract for the demolition of the substandard
dwelling and for lot and site clearance and preparation.
J. When appropriate, the applicant voluntarily vacates the substandard dwelling
Revised 08/26/97 Program Guidelines - Page 2
20
K. The replacement dwelling is constructed on the same lot as the original and is inspected by the
City Building Inspections Division to determine adequacy and compliance with City codes.
L. City certifies that the replacement dwelling is decent, safe, and sanitary and ready for
occupancy. City issues a final building inspection.
M. Applicant is required to obtain a Homeowner's Insurance Policy to cover the reconstructed
home, as required by Deed of Trust. Coverage is required prior to the homeowner(s) moving
in. Failure by the owner, or their representatives, to obtain homeowner `s Insurance could
result in the Community Development Office obligation to obtain insurance for the property
and to take immediate action to begin foreclosure of the property.
N. Applicant accepts replacement home.
0. A formal closing ceremony is held and applicant acknowledges receipt of payment schedule.
P. Upon completion of all actions in regards to reconstruction, applicant acknowledges in writing
that all payments, assistance, and conditions of the rehousing agreement have been received to
the applicant's satisfaction.
Q. Applicant occupies replacement structure.
IV. ELIGIBILITY REQUIREMENTS
Eligibility for reconstruction payments and assistance shall be established as follows:
A. Applicant has applied for rehabilitation assistance under the City of Denton's Home
Improvement Program.
B. Applicant was rejected for rehabilitation assistance on the grounds that the dwelling was not
feasible for rehabilitation.
C. Applicant is the owner-occupant of the dwelling for which reconstruction assistance is being
requested and s/he resides within a Targeted Neighborhood (see Appendix 2). The dwelling
has been the applicant's principal residence for a minimum of 5 years prior to application for
reconstruction assistance.
D. Applicant has presented proof of ownership by General or Special Warranty deed (City staff
verifies proof of ownership through a title search
E. An existing mortgage note balance cannot exceed 70 percent of the property's estimated after
reconstruction appraised value as set by the Denton Central Appraisal District. (Note: The
City of Denton reserves the right to request an independent market analysis.)
F. Applicants shall provide complete and accurate information regarding their household
composition, household income, and housing situation. 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 Division services are
provided to applicants who provide inaccurate or incomplete information in order to meet
eligibility requirements.
21
G. Applicants must demonstrate that their income exceeds their projected housing expenses.
H. Applicants agree to conform to Denton Code Enforcement requests prior to being determined
eligible for replacement housing assistance. Applicants agree to maintain dwelling and
exterior grounds in accordance with applicable city ordinances.
1. Applicants are required to attend the Successful Homeownership Workshop, with emphasis
being placed on maintenance, budgeting, cost effective decorating, and responsibilities of
home ownership.
J. Applicant may be required to apply for a loan to provide the program-required personal
contribution.
V. FEASIBILITY FOR RECONSTRUCTION
Feasibility for reconstruction is based on determining all related costs to complete a reconstruction
project. Total project costs cannot exceed the maximum amount allowed as set by the current
Section 221(d)(3) Lowest Home Per-Unit Subsidy Limits for the State of Texas as set by the
Department of Housing and Urban Development (HUD). Project costs include, but are not limited
to, the cost of demolition, site preparation, cost of replacement dwelling, title search fee, and/or
required City permit fees for construction.
VI. SELECTION OF RECIPIENTS FOR ASSISTANCE
A. Initial recipients of this program will betaken from the list of applicants residing in structures
determined to be infeasible to rehabilitate. Additional recipients will be added during
subsequent operation of the City of Denton's Home Improvement Program.
B. The number of recipients to receive assistance will be subject to availability of funds.
C. Applicants will be placed on awaiting list for reconstruction assistance based on the time and
date they originally applied to the Community Development Division for rehabilitation
assistance.
VII. ALLOWABLE EXPENSES AND CATEGORIES OF FINANCIAL ASSISTANCE
A. The primary form of assistance to be provided will be the use of Federal HOME grant funds to
pay for the cost of the replacement dwelling and costs related to replacing a substandard unit.
B. In general the City will follow the standards consistent with the Community Development
Division Replacement Housing Space Allowances Policy when considering the number of
bedrooms needed to avoid overcrowding:
C. The City of Denton has FOUR FINANCIAL ASSISTANCE CATEGORIES for those who
qualify for the Optional Reconstruction Program. These categories are based on the
Qualifying Income Limits and Ranges for the City of Denton's Federally Assisted
Programs (see appendix 1 to these guidelines for current income limit ranges). A
description of the financial assistance categories and their requirements are:
22
70 Percent Reconstruction Loan / 30 Percent Deferred Payment Loan: Applicants whose gross
annual household income falls above 65 percent up to 80 percent of the area median family
income limits will qualify for this two-part loan;
a. a 3 percent interest loan with the loan amount being based on 70 percent of the total City-
funded project cost amortized over 240 months. The lien will not be released on this part
of the loan until all 240 payments are received in full by the City of Denton; and
b. a deferred payment loan with the loan amount being based on 30 percent of the total City-
funded project cost. A detailed description of the deferred payment loan is found below
at the end of section VII.CA.
2. 40 Percent Reconstruction Loan / 60 Percent Deferred Payment Loan: Applicants whose gross
annual household income falls above 50 percent up to 65 percent of the area median family
income limits will qualify for this two-part loan;
a. a 3 percent interest loan with the loan amount being based on 40 percent of the total
City-funded project cost amortized over 240 months. The lien will not be released on
this part of the loan until all 240 payments are received in full by the City of Denton; and
b. a deferred payment loan with the loan amount being based on 60 percent of the total
City-funded project cost. A detailed description of the deferred payment loan is found at
the end of section VII.C.4.
20 Percent Reconstruction Loan / 80 Percent Deferred Payment Loan: Applicants whose gross
annual household income falls above 30 percent up to 50 percent of the area median family
income limits will qualify for this two-part loan;
a. 3 percent interest loan with the loan amount being based on 20 percent of the total City-
funded project cost amortized over 240 months. The lien will not be released on this part
of the loan until all 240 payments are received in full by the City of Denton; and
b. a deferred payment loan with the loan amount being based on 80 percent of the total
City-funded project cost. A detailed description of the deferred payment loan is found at
the end of section VILCA.
4. 10 Percent Reconstruction Loan / 90 Percent Deferred Payment Loan: Applicants whose gross
annual household income falls at or below 30 percent of the area median family income limits
will qualify for this two-part loan;
a. a 3 percent interest loan with the loan amount being based on 10 percent of the total
City-funded project cost amortized over 240 months. The lien will not be released on
this part of the loan until all 240 payments are received in full by the City of Denton; and
b. a deferred payment loan with the loan amount being based on 90 percent of the total
City-funded proj ect cost. A detailed description of the deferred payment loan is found at
the end of section VII.CA.
*DESCRIPTION OF A DEFERRED PAYMENT LOAN
A deferred payment loan shall carry 0 percent interest and continue until the applicant satisfies the
conditions listed in the deed of trust and promissory note executed prior to project start date.
Deferred payment loans are secured by a lien on the property. There are no monthly payments.
After the applicant has lived on the property for the required 240 months (20 years), as stated in the
23
contracts, the deferred payment loan will be forgiven. If the property is sold or transferred before
the lien period expires, the total deferred loan amount is owed and becomes due to the Community
Development Program. Amounts received are used as program income. The City of Denton will
be in the first lien position on all reconstructed dwellings. However, in situations where first lien
position is not feasible, the City will accept a second lien position subject to the review and
approval of the Community Development Administrator. The lien will not be released unless the
following conditions are met:
1. The applicant must reside in the unit for the full period of the lien.
2. The property must be maintained to meet City code requirements.
Mortgage payments must be met on a timely basis.
4. Home applicant must provide documentation of adequate Homeowner's hisurance, including
casualty and fire coverage, and the City must be listed as a Mortgagee on the Certificate of
Insurance to be notified in case of policy cancellation. Homeowner's Insurance
documentation must be received prior to applicant moving in to completed reconstruct house.
NOTE: The Deed of Trust Contract requires the applicant, upon completion of the
reconstruction, to maintain and/or purchase, for the full length of time which the City of
Denton will have alien on property, an insurance policy that: covers the home for its full
insurable value; provide fire and extended coverage, including windstorm coverage;
provides flood insurance at any time property is in a flood hazard area. Applicant agrees to
comply at all times with the requirements of the 80 percent coinsurance clause; and keep any
buildings occupied as required by the insurance policy.
If within the period of the lien the applicant defaults on their deferred payment loan or the
payable loan, the lien will be called due in full and foreclosure proceedings may be initiated.
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.
D. Repayment Policy for Financial Assistance: The applicant must agree to have a lien placed on
their property until they have satisfied the requirements of the promissory note. The lien will
remain until the loan has been paid in full. If for any reason the loan recipient decides to sell or
rent the property before the lien's terms are all met, the note's payable loan balance and the full
amount of the deferred loan will become due.
E. In the event the owner(s) passes away prior to the maturity date, or the owner(s) can no longer
reside in the property due to a permanent medical condition, should the legal heirs to the property
decide to sell the property, the amount the City of Denton will settle for will be the lesser of
a. 75 percent of the property's market value (based on an approved independent appraisal at the
time of sale); or,
b. The payoff balance of the lien due the City of Denton at the time the applicant passed away or
is no longer able to reside in his/her home.
F. Liens will remain in effect until the grantee has met all requirements as specified in the promissory
note. In the event of the sale of the property, any unpaid balance of the loan and the total deferred
loan amount will become due immediately. If, in the event of the death of the grantee, a family
member who meets the Program's income limits who takes up residency in the property and who
becomes the sole deed holder of the property may apply to the Community Development Division
for continued assistance with the loan. The assistance level will be based on current-year Program
24
guidelines and the applicant-owner will be required to sign an Adjustment and Extension ofNote
and Lien. Failure to do so can result in default on the loan, the lien will be called due in full and
foreclosure proceedings may be initiated. 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.
G. Allowable expenses will include:
Cost of total demolition and clearance of the dilapidated structure, lot clearance, and
preparation of job site for new replacement dwelling.
2. Cost to reconstruct safe, sanitary, decent replacement dwelling.
Other expenses the Community Development Division determines to be necessary to facilitate
the reconstruction of the substandard property (Ex: title search, filing fees, platting,
engineering reports...)
H. Community Development staff will also provide assistance and counseling to applicants as needed,
including the following:
1. Information on the program and rehousing options available.
2. Assistance in soliciting bids for replacement housing.
3. Assistance in contractual compliance between applicant and contractor.
4. Assistance in inspection of construction of replacement dwelling, if applicable.
1. If, after the loan payback begins, a household experiences a permanent, substantial loss of
household income, an applicant can request a re-evaluation of their total annual gross household
income . This evaluation may result in a decrease in the payable portion of the note. The loss of
income must be from an income-earning household member(s) whose income was used in
determining the original loan assistance category. Please note: Loss of employment (voluntarily
or involuntarily) is not considered a "permanent loss". For purposes 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 II -
Application Processing 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 an Adjustment and Modification ofNote and Lien contract reflecting the adjustment
and/or extension of the note.
VIII. REHOUSING AGREEMENT
Each applicant assisted through the program will sign a rehousing agreement with the City, which
outlines the responsibilities of each. The agreement establishes a date on which the applicant agrees to
permanently vacate the present structure, agrees to demolition of the present dilapidated structure,
25
agrees to occupy the replacement structure when structure is completed and ready to be inhabited, and
agrees that temporary housing will terminate when structure is ready for occupancy as determined by
the City of Denton.
IX. FINAL INSPECTION - CERTIFICATE OF OCCUPANCY
The City of Denton will conduct a final inspection of all housing units made available through the
program to determine that the replacement unit is approved for occupancy and that all items identified
in a "punch list" have been corrected. This Certificate of Occupancy will serve as evidence to HUD of
the City's determination that the dilapidated structure has been replaced by a decent, safe, and sanitary
dwelling and that the family has been successfully relocated.
26
APPENDICES
Appendix 1 Qualifying Income Limits and Ranges for the City of
Denton's Federally Assisted Programs
Appendix 2 Target Neighborhoods Map
Appendix 3 Optional Reconstruction Program Application and
Temporary Relocation Questionnaire
Appendix 4 Optional Reconstruction Program Rehousing
Agreement for Applicants
27
E
°
0
0 o `
U
O
O
O
-0
m y
v
=
0
-i LL. c
00
00
00
00
0
u
v
~
t
d a
w
co
co
co
m
m
m
m
m
i
q b
-0 0
a
J
•
0
0
0
0
0
0
0
0
iy ~y N
F+ A
O -6 a O
o
N
O
LO
O
IX)
O
LO
O
LO
O
U')
O
Lf)
O
LO
O
M
a
IL
I
rn
rn
M
M
LO
r`
0-4 w d ta
LO E
0)
\
0)
O
Cl)
Ln
(A
N
Ch
N
N
CO
N
H « v
m
~
T
(
J
O
3 K
Ef>
1
EPr
FA
1
EfJ
Ci>
614
Vf
6.)
.
.
v q
LLlO
N ~ V Vi
a
a
.
U O O
N a
s
o
a a
H M
> N N p
bl
O ~y H
0
E J-l
C R c N
E a
o
°
r
r
r
r
r
r
r
M
O
0 U .
0 d
R
C L U)
O O) U
J LL
j o
0 O
N •
rn
m
0)
rn
W)
~
CN
CN
CN
p O
O t7
•
O M
41
R
=
~
~
~
v?
M
.
.
y
a 4 '
ER
HJ
EfJ
EfJ
vi9
•~a a
R d•>
`
U oVm
w
~
Q
A
4 O_
R D 0 J
a o
°
O
O
O
O
O
LO
O
LO
O
O
O
LO
O
LO
O
O
.
p
d
a
a
e
a
M
m
m
m
N
rn
LO
0
N
O)
M
w n p p
O Z
°
o
°
°
3 'n >
m
~
co
~
c
64
m
64
LO
CO
0
~
r
.
T^
°
D
E a
c*
~L a*
o
C6
6e
6%
.
o p
i
aQ u
O
o
N
N
0
p
p
o
v a a
d a
p
P. C N
° N
~a 3
0 El oo
~v
y
N E
O
LL, it
C L
17
w F+
i)N ow y.00
7 0 0
£
R C N
cc a
U O 27 U
N
C
G
Q
0 J LL 00 N e
O
Cl)
O
co
LO
m
LO
N
O
m
LO
U')
LO
N
O
m
O aL
N 'O 'O E O
N
N
N
L +i
M
M
~
v~ ro A F
H N U
C U
V
m R V V
W
1
~ W
q w
~
J
L
`
(h>
Ef).
6%
VR
C4>
H>
b9
6
.
. 0
O
4)
T
0
0
0
0
0
0
0
0
O
N
]
° 0 3
L
d C
LO
O
O
LO
O
LP)
O
Lf)
~
0 y y
C OF
O.o J a
e e
N
c
co
.Q
m
C>o
N
C
Cfl
CJ
co
C6
o
r--~
p o " a
'Jy O
Q V
O O C ti e
co
M
M
-q-
-ir
LC)
LO
LO
y }g p er'
g
~
6%
6 J
6f>
K>
KJ
ER
6%
EH
N
H 0 0
C
T•~ N
T N
U H O O P'a~ d
U 'ly
V L4
H
.
O 8-S
w
d ~
s aW " p Ll
b
O o O p y
x
. N
C 'O ~
C
~
C)
~
~
CD
LO
C)
L
ti .O y g a H
y U y O 0
R C w 0)
o E a
°
N
O
C) O )
N
O
O
O
w rn
e
1 Li
J .
'
C
O
'
C
O
Q N
'0 'O U 0 °UP)
R c CO
R
O
<r
co
oD
~
M
CO
O
Ch
r--~
~ v a d p
p d is m
`
°
v
Va.
~
~
~
~
~
o o aA
c
m
N
R d' O
y p F A L
O
O
O
O
O
O
O
O
„
W H
b
y 0 w b x
`
R
LL d 0 N
Q
Lf)
N
Lf)
LO
O
O
O
N
LO
<F
O
r~
LO
M
O
N
N W a
~ 0 4O O
.O y m 1-.
a e 0 u O
L-
N
r--
M
~
r
Lf)
O
y W 0.1 F
~ M 3 cz
~
6
~
~
~
~
~
p
O C O
2
+
p
.7
z
~ a
L
~ Q
N
•
p,
d
T
E
N
M
LC7
O
r
W
R VN
LL
La
» a
La
T a
,y o o e
a~ a Ln
0
0
N
O
O
N
t
x
Z
W
IL
Q
00
N
APPENDIX 2
City of Denton, 'T'exas
Home Improvement and
Optional Reconstruction Program
Targeted Neighborhoods Map
ST
29
APPENDIX 3
OPTIONAL RECONSTRUCTION PROGRAM APPLICATION
AND TEMPORARY RELOCATION QUESTIONNAIRE
Your participation in the Optional Reconstruction Program is voluntary.
Reconstruction funds are limited. Therefore, the Program does not cover costs
necessary for household to relocate during reconstruction of property. Please
complete the following questionnaire. This information will help our staff in
determining if you will be eligible for the Optional Reconstruction Program.
1. 1 understand that it is my responsibility to relocate my household and that I am responsible for all
costs involved to do so?
Yes No
2. 1 understand that as a result of reconstruction, my appraised property value may increase
significantly from the amount at which it is currently valued?
Yes No
3. 1 understand that an increase in my property value may cause my property taxes to increase by a
significant amount. I am financially prepared to meet any increase?
Yes No
4. 1 understand that I am obligated to carry homeowner's insurance for the duration of the lien (20
years) that the City of Denton will have on my property.
Yes No
5. 1 understand that my homeowner insurance premium will most likely increase as a result of the
reconstruction. I am aware that my insurance policy must cover the after-reconstruction
appraised value of my property. I am financially prepared to meet this increase.
Yes No
6. 1 understand that I must request that my insurance company list the City of Denton as a "Certificate
Holder" on my policy?
Yes No
7. 1 understand that The City of Denton is limited in the amount of funds they can spend to reconstruct
a property. I have been briefed on these limits and understand that my eligibility for the Optional
Reconstruction Program will be granted only if it is determined that the total of all costs
involved to reconstruct my property will be at or below the allowable program limit.
Yes No
This APPLICATION was completed by
on . By signing below, I am requesting that the City of Denton's Community
Development Division accept this as my application to be considered for the Optional
Reconstruction Program.
30
Applicant's Signature Date
31
APPENDIX 4
CITY OF DENTON
COMMUNITY DEVELOPMENT PROGRAM
OPTIONAL RECONSTRUCTION PROGRAM
REHOUSING AGREEMENT FOR APPLICANTS
THIS AGREEMENT, made and entered into on (Date document will be signed), by and between
the City of Denton, Texas, and (Name of applicant signing document) hereinafter referred to as
Applicants. This agreement covers the structure occupied at the following legal address:
(Legal property description of dwelling to be reconstructed)
WHEREAS, The Applicant has heretofore requested and qualified for the Home Improvement
Program with assistance from the City in order to obtain adequate, decent, safe, and sanitary
housing under the City's Community Development Block Grant and HOME Program; and
WHEREAS, the City has determined that rehabilitation of the Applicant's residence is not a
feasible alternative; and
WHEREAS, the City has determined that the Community Development Program will not
provide the Applicant relocation payments and assistance necessary to accomplish the voluntary
relocation of the Applicant from the substandard, umehabable dwelling currently occupied into
an adequate, safe, and sanitary replacement dwelling.
NOW, THEREFORE, the City and the Applicant for and in consideration of the covenants and
promises as hereinafter set forth, do agree as follows:
1. The Applicant agrees to vacate permanently the currently occupied substandard dwelling within
10 days notice by the City for the need to vacate.
2. The Applicant agrees and hereby authorizes the demolition and removal of the currently
occupied dwelling and clearance by the City of the property. The Applicant further releases the
City from any and all claims arising from this action.
3. The Applicant agrees to take possession and occupy the replacement dwelling when such
dwelling is completed and the City determines it to be ready for occupancy. The Applicant
further agrees to sign any required instruments to effect this item.
4. The Applicant agrees to provide and bear all financial costs necessary to relocate Applicant's
household and furnishings without assistance from the City of Denton.
5. The maximum budget authority for the Optional Reconstruction Program is (Maximum
allowable funds for project), which includes, but is not limited to, property title search fee, the cost
to demolish the existing dilapidated structure and the cost to reconstruct an adequate, decent,
safe, and sanitary replacement dwelling on the original site (lot) of the dwelling vacated by the
applicant.
6. Applicant agrees to the time limitations as set forth in the Optional Reconstruction
Guidelines in which to be moved from the substandard property.
32
Applicant' Signature Date
Applicant' Signature Date
CITY OF DENTON:
Community Development Administrator
33