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2001-314 OP. OINANCE'NO 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 EXPENDITLrRES IN EXCESS OF $15,000 FOR PROJECTS MEETING PROGRAM GLriDELINES AND CRITERIA, AND PROViDING FOR AN EFFECTIVE DATE WHEREAS, the C~ty Council of the C~ty of Denton recognizes the need to assist low and moderate income families ~n secunng safe, samtary and decent housing, and WHEREAS, the C~ty of Denton participates m a Home Improvement & Optional Reconstruction Program admlmstered by the City of Denton Commumty Development Office and funded through a federal grant from the Department of Housing and Urban Development, NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION 1 That the City Counml approves the Home Improvement & Optional Reconstmctlon Program Gmdehnes and Home Improvement & Optmnal Reconstruction Program Ehglblhty Criteria winch is attached hereto and made a part of tins ordinance for all purposes as Exinb~t "A" and authorizes the C~ty of Denton Commumty Development Office to administer this program SECTION 2 That the City Couned authorizes the expenchture of funds ~n excess of $15,000 by the Community Development Office for projects meeting program gmdehnes and criteria, subject to comphance with competit~ve bidding laws, where apphcable SECTION 3 That tlus ordinance shall become effective lmmechately upon its passage and approval d yo ' EULINE BROCK, MAYOR ATTEST JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY Page 2 of 2 Home :I:mprovement & Optioncd Reconstruction 2001 Program Guidelines Available in Spanish I DIsponlble en Espa~ol Effective Date 10/01/2001 Applicant(s) Is Subject To All Guideline Changes TABLE OF CONTENTS Introduction ............................. 3 Description of Program Procedures. 4 I Eligibility Requirements 4 I1 Apphcation Processing 6 llI Description of Financial Assistance 7 IV Feasibility for Rehablhtation Process. 9 V Appeals Provision 11 VI Contractor Selection and Monitoring 1 l VII Payment to Contractor 12 VIII Contractor Debarment 13 ...;....,.....:, .......... I Purpose 13 II Designated Authority 14 II1 Implementation Proces~ 14 IV Eligibility Requirements 15 V Feasibility for Reconstruct~oa 16 VI Selection of Recipients for Assistance 16 VII Allowable Expenses & Categories of Financial Assistance 16 VII1 Rehousing Agreement 19 IX Final Inspection - Certificate of Occupancy 20 Append~ee~ ~ Appendix 1 Qualifying Income Limits and Ranges for the City of Denton's Federally Assisted Programs. 22 Appendix 2 Target Neighborhoods Map 23 Appendix 3 Optional Reconstruction Program Apphcation and Temporary Relocation Questionnaire 24 Appendix 4 Optional Reconstruction Program Rehousing Agreement for Applicants 25 2 INTRODUCTION The City of Denton Home Improvement and Optional Reconstruction Program ~s designed to assist low and moderate-income famlhes ~n securing safe, samtary and decent housing This program's objective is to assist ehglble homeowners to rehabilitate s~ngle-fam~ly owner-occupied house s by making needed repairs w~th the first priority being to correct code violations When a determination is made that the structure Js not feasible to rehabilitate to mm~mum standards under the C~ty's Home Improvement Program the apphcant may be ehglble for assistance to reconstruct the property The Optional Reconstruction Program provides funds to demolish ex,sting d~lapldated dwelhngs and reconstruct adequate, decent, safe and samtary replacement dwelhngs The Home Improvement and Optional Reconstruction Programs are administered by the City of Denton's Commumty Services D~wslon and are funded by federal grant from the Department of Housing and Urban Development The following pages contmn a detailed description of these programs including policies and procedures The purpose of these gu~dehnes ~s to explain to potential applicants and the C~tlzens of Denton, the Home Improvement and Optional Reconstruction Programs and their levels of assistance For further information or clarification of the gmdehnes, contact the Commumty Services Division Community Services Division 100 West Oak Street, Suite 208 Denton, Texas 76201-4144 (940) 349-7726 Home Improvement Program Description of Program Procedures I. Eligibility Requirements- Ehgtbihty reqmrements must be met forboth the apphcanthouseholdand the structure Ehgtblhty for assistance is completed m two phases as described m Sections I A and I B below A Apphcant/Household Ehgtbth ,ty Reqmrements Are Must be a Umted States citizen or a legal resident ahen 2 Must have owned and occupied the s~ngle-famtly-dwelhng umt for not less than five years for the Home Improvement and Opttonal Reconstructton Programs (The pertod ofttme an apphcant has hved m a property under a lease for purchase/or contract for deed form or purchase may be taken mto consideration tn calculating the five years ) 3 Must hold a Fee S~mple T~tle to the property a Ifapphcant is purchasing their home by a "contract for deed" (or a hke contract), where apphcant does not gain title to the property deed unt, I all contract agreements have been met, appl,cant ~ot ehg~ble for rehabd~tatmn assistance The sellennust promde the purchaser wtth a warranty deed on the property to satisfy the ehg~blhty reqmrement of ~tem I A 3 above b If apphcant(s) inherited property, the necessary legal documents nammg apphcant(s) as the sole deed holder must be drawn up and filed for record at the Denton County Clerk's Office 4 Must meet program's income hm~ts a Gross annual total household tncome ~s at or below 80 percent the current Area Median Income (AMI) adjusted for famdy stze Current maxtmum income hmtt by household stze ~s Number of People 80% of the AMI Ll¥1n~l tn Household Maximum Income Limit 1 $36,O5O 2 $41,200 3 $46,350 4 $51,500 5 $55,650 6 $59,750 7 $63,900 8 $68,000 b Must not have assets (total combined for all household members) tn excess of $100,000 NOTE 1 The apprmsed value of the apphcant's home ts excluded tn total assets calculatton NOTE 2 Annual income and asset tncome are calculated ustng HUD's most current Sectton 8 Income gmdehnes and rules as estabhshed m the Techmcal Gutde for Determtmng Income 5 Must be m good credtt standing w~thand exhtbtt the abthty to pay credttors mcludtng the followtng basic 4 housing expenses a Home Mortgage Payment b Loan payment(s) (when apphcant's property ~s collateral on loan) Including the loan with the C~ty of Denton to rehabilitate property c Property Taxes (C~ty, County, DISD) d Homeowner's Insurance Policy premiums e Utflmes electr~cal/water/sewage/sohd waste and gas 6 Homeowner may be required to apply for a loan to prowde the program reqmred contribution (see Secnon I11 A ) 7 The total amount of hen(s) on the property cannot exceed 80 percent of the property's apprmsed value as set by the Denton Central Apprmsal D~stnct (cannot exceed 70 percent of the property's apprmsed value for reconstruction assistance) NOTE The C~ty of Denton reserves the right to request an ~ndependent market analys~s 8 Apphcants demed assistance due to poor credit h~story may be reconsidered for the program upon verifiable completion of slx (6) consecutive months of successful debt management w~th Consumer Credit Counsehng Services of North Central Texas, Inc or other debt management compames w~th written approval B Property Ehg~bfl~ty Reqmrements Must be classified as asmgle-famdy-dwelhng umt and be situated m a Targeted Neighborhood w~thm the c~ty hm~ts of Denton (Refer to Targeted Neighborhoods Map - Appendix 2) 2 Must exhibit building code deficiencies that make the structure unsafe or unsamtary 3 May not have ex~stmg property code wolat~ons (such as h~gh weeds, trash, debns,.lunk veh~cles, etc) Any hens placed on propemes for correcting any code v~olations must be prod ~n full by the time apphcanon processing Occurs 4 Must be serviced by a C~ty-approved water supply, sanitary sewer and electrical system 5 Must meet all of the City of Denton's Land Development Codes Must be feasible for rehabditat~on as defined m Section [V of the Program Procedures ? Must be covered by an approved homeowner's insurance policy NOTE If an apphcant's property is not currently insurable because of its present condition, the applicant must obtain a homeowner's insurance pohcyquote (from any reputable insurance agency) The quote should be based on the after-rehabflrtatlon structural status Apphcant should inform agent that the structure will be rehabilitated to meetall current Braiding, Electrical, Plumbmgand F~r~Safety codes. Applicant must provide this quote to the Communtty Servtces Dtvtston and s~gn aNOTICE OF INTENT AND AGREEMENT TO OBTAIN A HOMEOWNER INSURANCE POLICY to satisfy eligiblhty reqmred m item I B 7. 8 A property that has been previously rehabilitated w~th Federal or State grant funda~fter March 1994 ~s not 5 eligible for assistance Propertieshavmgreceivedasslstance before Apn11994 may be ehgible for addltional assistance after eight (8) years from the date of the last assistance 9 With the exception of I B 8 above, households previously assisted with HOME fundgnay be ehglble for rehab assistance based on avadabihty of funds and federal regulations II. ApplicatiGn Processing A To be placed on the waiting hst, applicants must meet the following gmdehnes Household's total gross annual income does not exceed current program tncome limits 2Owner is the occupant of a single-family dwelhng umt for not less than three years 3Property is located m a Targeted Neighborhood (see Appendix 2) 4 Apphcant must complete a Wattmg Ltst.'lppltcatton Form and attach a copy of property deed (Waiting List Application Forms are available at the Community Services Dlmslon, 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 hst, in order received by the Community Servmes Division, by time and date C When applicant reaches the top of the waiting list, s/he wdl be notified in wntmgto completethe appheationprocess The letter ofnottce to apply for assistance requests applicant to promde the following items Copy of Deed or Warranty Deed for the property to be rehablhtated (applicant must be deed holder) Name/ma~l~ng address of your mortgage company 0f you have a mortgage payment) Name/malhng address of your Homeowner insurance pohcy prowder with "pa~d" receipt or canceled check Current year's "pa~d" Property Tax receipts from DISD, C~ty and County tax offices Current year's Income Tax Return w~th 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 0f you receive Social Security benefits) Paycheck stubs for last four weeks for each employed household member Employers' names/addresses for each emoloved household member Names and addresses of retirement income or any other income soumes (ALL INCOME SOURCES MUST BE BISCLOSED--RETIREMENT, RENTAL/HAP INCOME, AFDC, FOOD STAMPS, ETC ) · D~vorce decree if you receive child/other support from a d~vome or ~f you were awarded deed to your property through a d~vorce Two most current months' statements (must ~nclude names/addresses/account numbers) of all banks, credit umons, sawngs banks, IRA accounts, etc for all household members who have any of these types of accounts B~lls~for the last twelve months from TXU Gas and C~ty Ut~ht~es (If you don't have cop~es of the last twelve months blls, TXU or C~ty of Denton Ut~ht~es w~ll ma~l you a summary Please be sure the summary has your current balance stated ) NOTE Deadlines given for contacttng the CD office to make an appointment to apply and those g~ven for submtt~ng application mformat~on w~ll be stated ~n the not~ce to apply letter (See Section II C ) The deadhnes w~ll be enforced ^pphcant must provide all information requested in 1] C above that apphcs to his/her household and complete all required verification forms in the apphcatlon packet All information will be verified by Commumty Serwces staff If any information Is found to have been intentionally falsified, the application will be rejected and the apphcant wdl not be allowed to reapply to this program 6 E Commumty Services staffwdl calculate the gross annual household lncomeand determine the percent of income spent for housing expenses F CommunlW Services staff will notify eligible apphcant(s) of the financial assistance category he/she is eligible for under the program guidelines Applicant will be notified that finalehgibihty for assistance ~s determined upon completion of the feasibility for rehabilitation process Ineligible applicants will be notified of the reason their application for assistance is being rejected III. DescriptiQn Of Financial Assistance Categories A Applicant must attend a credit evaluation meeting with Consumer Credit Counsehng Services of North Central Texas, Ine 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 m based on a shdmg scale as follows Moderate (80%-+65%AMI) Income Households : 1% of total project Low Income (65%-+50%AMI) Households = 75°.4 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 porhon of the project has a loan hen period and financial assistance categories for those who quahfy for the Home Improvement Program The loan hen period categories are based on project cost The financml assistance categories are based on thOuah[vm~ Income Limits and Ranges for the CI.t~ of Denton's Federally Assisted Programs(see Appendix I to these guidelines for current income hmlt ranges) A description ofthe loan hen period and financial assistance eategorlesand their requirements are Loan Lien Period Cate(~onos Project Cost Less than $10,000 = 5 year I~en (60 months) Project Cost Between $10,000 - $25,000 = 10 year I~en (120 months) Project Cost Between $25,001 & up = 15 year I~en (180 months) Financial Assistance Categories 1 70 Percent Rehabilitation Loan / 30 Percent Deferred Payment Loan Apphcantswhose gross annual household income falls above 65 percent up to 80 percent of the area median fam dy income limits will qualify for this two part loan, a a 3 percent interest loanwlth the loan amount being based on 70 percent of the total City-funded project cost amortized over the Loan Lien Period The hen 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 ofthe deferred payment loan Is found below at the end of section III B 4 2 40 Percent Rehabilitation Loan / 60 Percent Deferred Payment Loan Apphcantswhose gross annual household income falls above 50 percent up to 65 percent of the area median famd~ncome hmltswdl qualify for th~s 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 hen wdl not be released on this part of the loan until all payments are received in full by the City of Denton, and 7 b a deferred payment loan with the loan amount being based on 60 percent of the total City-funded project cost A detmled description of the deferred payment loan ~s found at the end of section Ill B 4 3 20 Pement Rehabilitation Loan / 80 Pement Deferred Payment Loan Apphcantswhose gross annual household ~ncome falls above 30 pement up to 50 percent of the area medmn famdy income hm~tswfll quahfy for th~s two part loan, a 3 percent interest loanwah the loan amount being based on 20 percent of the total C~tyfunded project cost amortized over the Loan Lten Period The hen wdl not be released on th~s part of the loan until all payments are received ~n full by the C~ty of Denton, and b a deferred payment loan with the loan amount being based on 80 pement of the total C~ty-funded project cost A detailed description ortho deferred payment loan ~s found at the end of section III B 4 4 10 Percent Rehabthtatlon Loan / 90 Percent Deferred Payment Loan Apphcants whose gross annual household raceme falls at or below 30 percent of the area median famdy raceme hm~ts will quahfy for th~s two-part loan, a a 3 percent interest loanwlth the loan amount being based on 10 percent of the total City-funded project cost amortized over the Loan L~en Period The hen w~ll not be released on th~s part of the loan unttl all payments are received m full by the City of Denton, and b a deferred payment loan w~th the loan amount being based on 90 percent of the total C~ty-funded project cost A detailed description of the deferred payment loan Is found at the end of section III B 4 *DESCRIPTION OF A DEFERRED PAYMENT LOAN A deferred payment loan shall carry 0 percent interest and continue untd the apphcant satlsflesthe conditions hsted ~n the deed oftrust and prom~ssory note executed pnor to project start date There are no monthly payments Deferred payment loans are secured by a hen on the property For each month the apphcant hves on the property, a monthly payment amount established m a promissory note wdl be forgiven If the property ~s sold or transferred before the hen permd exptres, the apphcant ~s credited for every month of residency The crechls subtracted from the total loan amount to determine the unforglven loan balance The unforg~ven balance ~s owed and becomes due to the CommmlltyServlcesProgram Amounts rece~ved are used as program mcome TheC~tyofDentonwdlbemthe first hen pos~t~on on all rehabilitated dwellings However, m s~tuatlons where first hen position Is not feasible, the C~ty wdl accept a second lien poslt~on subject to the rewew and approval of the Commumty Development Administrator The lien wall not be released unless the following conditions are met The,apphcant must reside m the umt for the full period of the hen 2 The property must be mmntalned to meet C~ty code reqmrements 3 Mortgage payments must be met on a t~mely bas~s 4 Home apphcant must prowde documentation of adequate homeowner's ~nsurance, tncludmg casualty and fire coverage, and the C~ty must be hsted as a Mortgagee on the Certfficate of Insurance to be nottfied ~n case of pohcy cancellation, NOTE. The Deed of Trust Contract requires the apphcant, upon completion of the rehablhtatlon,to maintain and/or purchase, for the full length of time which the C~ty of Denton wall have a hen on property, an insurance pohcy that covers all ~mprovements resulting from the rehablhtatlon for their full insurable value, prowde fire and ~xtended coverage, including windstorm coverage, provides flood insurance at any t~me property ~s m a flood hazard area Applicant agrees to comply at all t~mes with the reqmrements of the 80percent cmnsurance clause, and keep any build~ngs occupied as reqmred by the insurance pohcy 5 If within the period of the hen the apphcant defaults on their deferred payment loan or the payable loan, the hen 8 wall be called due in full and foreclosure proceedings may be ~mtlated The City wall make every effort to work w~th the apphcant to avoid foreclosure and will examine each situation on a case by case basis C Repayment Policy for Fmancml Assistance The applicant must agree to have a lien placed on their property untd they have satisfied the reqmrements ofthe promissory note The hen wall remain untd the loan has been paid m full If for any reason the loan recipient decides to sell or rent the property before the hen's terms are all met, the note's balance will become due D In the event of the death of the owner(s) prior to the maturity date, or the owner(s) can no longer reside in the property due to a permanent medical condition, and the legal he,rs to the property dec.de to sell the property, the amount to be repmd to the City of Denton will be the lesser of 1 75 percent of the property's market value (based on aClty-approved independent appraisal at the time of sale), or, 2 the payoff balance of the loan due the City of Denton at the time of death or the date the owner no longer resided in the home E E Liens wall remain m effect untd the grantee has met all reqmrements as specified In the promissory note In the event of the sale of the property, any unpaid balance of the loan and any unforgiven portion of the deferred payment loan will become due immediately If, m the event of the death of the grantee, a family member who meets the Program's income hm~ts should take up residency m the property, s/he must apply to the Community Services Division for continued assistance with the loan The assistance level will be based on current-year program guidelines and s/he will be required to sign an AdJustment and Extension of Note and Lien NOTE Liens established as a result of an agreement with the City of Denton for a home improvement loan cannot be subordinated to future hens on the property unless 1 the new lien places the City m no less than a second lien position, and 2 the loan refinances the original mortgage loan with no significant increase in the mortgage amount, or 3 the loan ~s used to fund additional home ~mprovements and the total of the liens does not exceed the appraised property value F If, after the loan payback begins, a household experiences apermanent, substantial loss of household income, an apphcant 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 appltcant(s~ whose tncome was used tn determtntng the ortgtnal loan asststance category Please note Loss of employment (voluntarily or ~nvoluntardy) is not considered a "permanent loss" For purposes ofthis program"permanent loss" ~s defined as 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 lr~ectton II. Apphcatton Processmg to determine if an adjustment and/or extension to the payable portion of the note is eligible A determination will be made after evaluatmgthe household s~ze and income using the program gmdeline income l,mt and financml assistance categories that are being used at the time the request for reduced loan payment ~s made When a loan adjustment and/or extension is granted, the applicant must sign an4dlustmentandModt~catlono£Note and Den. contract reflecting the adjustment and/or extension of the note IV. Feas,bility For Rehabilitation Process A A decision as to whether a structure is feasible for rehablhtation ~s made after a complete assessmentofthe following 9 factors Completion of a detailed inspection ofthe property by Commumty Services staff,s conducted Th~s ~nspect~on includes completing a list of all deficiencies that must be corrected m order to bring the structureup to minimum program standards (compliance with HUD's Section 8 Minimum Housing Quality Standards3and C~ty of Denton building codes 2 Determine if the rehabilitation cost will be affected by the zoning of a property, a property being located m a designated 100-year floodplain or floodway, a need to abate possible presence of lead-based paint, possible h~storlcal restoration requirements or ifa rehab will reduce no~se levels ~f property is in a high no~se area NOTE The Floodplain Managemant regulations hm~t the total cost of all non-cod~epa~rs for any structure located m 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 3 Determine ff the framework and foundation of a structure are stable, or can be made stable through rehabflitat~on 4 Lead-based paint hazard reduction techniques will be used when lead-based paint exceeds HUD's acceptable hmits for lead content m existing paint The limits for lead content exceed HUD's hmlts wheflead content exceeds 1 mg per cm~ (one mflhgram per centimeter squared), or $000 ppm (parts per mflhon) 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 $ Is a room addmon(s) needed to relieve serious overcrowdmgP NOTE Room addmons and improvements to relieve serious overcrowding may be ehg~ble and reqmre the approval of the Commumty Development Admimstrator The Cny will followthe standardsconslstentw~th the Community Services Dlws~on Replacement Housing Space AllowancesPohcywhen cons~dermgthe numberof bedrooms needed to avoid overcrowding B Using all information obtained in items IV A 1-$ above, a cost estimate and structural evaluationwfll be completed A project with a cost estimate above Program Maximum Limits ~s not ehg~ble for rehabfl~tatlonassistance Apphcant may be referred to Opuonal Reconstruction Program C PROGRAM MAXIMUM LIMITS FOR REHABILITATION A rehabilitation that cannot meetall of the following hm~t tests ~s considered cost prohibitive or not feasible for rehabilitation Rehabfl~tation will not exceed $40 per square foot of total hwng space (using after rehabfl~tation square footage) Exception $45 per square foot tf the house needs to comply with lead reduction or h~stoncal requirements $50 per square foot if the house needs to comply with both lead reducUon and h~stoncal requirements 2 Rehabilitation will not exceed the current Maximum Home Subsidy LIm~ts for Denton as set by HUD 3 The after rehabditation appraised property valueplus 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 estabhshed by HUD D PROGRAM MINIMUM LIMITS FOR REHABILITATION A structure needing less than $5000 of repairs is not ehg~ble for rehabilitation assistance 10 V. Appeals Provisions: An appbcant who feels that s/he has been unjustly denied rehabdltatlon asslstanceunder the City's Home Improvementor Optional Reconstruction Program should follow the appeals procedure outlined m Section V A Request for Waiver The City of Denton's Home Improvement Program has been developed to adhere to a set of guldehnes m order to assure proper admlmstratlon and management of the Home Improvement Program In the event that an applicant feels that his/her clmumstances require special consideration, s/he can request, In writing, a waiver from the usual requirements AIl requests should specify the requirement(s) to be considered for waiver and state the apphcant's reason(s) or special c~rcumstances why s/he bal~ves a waiver should be approved Requestswdl be reviewed by the Commumty Development Admlmstrator on a case by case basis Applicant will be notified m writing of the Community Services Division's final decision B Appeals Procedure Apphcants, who have been determined by the Commumty 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 8election And Monltorin~ 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'spoposalmust be submlttedto the Community ServlcesDlvls~on wahln 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 b~d 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 propemes · Chamber of Commerce Community Services 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 ldentffied by the Commumty Development Housing Inspector · Advise him/her that the bid proposal must be returned to you or the Community Services Division for submission to the rehablhtatlon program on or before the due date DO NOT SIGN ANY AGREEMENT WITH THE CONTRACTOR Bring the contractor's bid proposal to the Community Serwces Division at 100 West Oak Street, State 208, where you made your original apphcatlon The Community Development Housing Rehablhtatlon Inspector or Housing Rehabilitation Specialist will review the proposal to verify that The contractor is licensed and has all City-required insurance coverages 2 All reqmred improvements have been included in the bid 3 The proposed work Is in conformance with the program's General Specfficat~ons 4 All proposed rehabilitation costs are reasonable 11 5 The contractor you have chosen has not been d~squahfied (debarred) by any local, State or Federal government agency The bid proposals that are submitted by the apphcant w~ll be rewewed by the Commumty Development Housing Rehabthtat~on Inspector to determine tfthe total bid price is reasonable and under the mammum allowable amount THE CITY OF DENTON AND THE Apphcant RESERVE THE RIGHT TO REJECT ANY AND ALL BIDS If the Commumty Development Administrator approves the b~d proposal selected by the apphcant, then the Commumty Services 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 C~ty of Denton Debarred Contractor's L~st wall not be ehg~ble to partm~pate m th~s program References will be checked and clmms of substandard workmanship wdl be cause to declare a contractor mehg~ble The~ntract~rmusta~s~subm~ta~requ~redpr~f~f~nsurancef~rmsandb~nds(~fapphcab~e) Fadureto submit these will result m rejection of the b~d proposal Once the contractor has been selected and approved, a contract agreement must be s~gned Before the contractor can start work, the apphcant must ~ssue a not,ce to proceed The apphcant, the Commumty Servmes staff and theClty of Denton bmld~ng code inspector will momtor the contractor's work Ifthe apphcant considers any work done by the contractor to be unsatisfactory or ~ncomplete, the apphcant should adwse the contractor of the thscrepancy and ask that ~t be corrected In the event a dispute exists between the apphcant and the contractor w~th respect to the rehabilitation work, the C~ty shall take approprmte action in accordance w~th the provisions of the construction contract to assure that the apphcant ~s sl~sfied before making any payment to the contractor In the event a thspute cannot be resolved, the Department D~rector shall consider all pertinent facts and shall dec,de an appropriate course of action to resolve the thspute Acceptance of Work Final Inspection- In order for the contractor to close out a rehabdttat~on job, a final ~nspectmn shall be made by the C~ty of Denton budding code inspector, the Commumty Services staff, and the apphcant lfthe final mspect~onresults m no additional work or no spemfied corrections, the apphcant shall s~gn the contractor's release form which states that all work has been completed to their (apphcant's) satisfaction The budding code inspector shall s~gn a final inspection form to confirm the same At th~s t~me, the contractor ~s reqmred to submit to the Commumty Serwces D~ws~on coptes of all warrant~es and releases of hens from subcontractorsand supphers Commumty Services wdl not authorize payment to the contractor until these documents are properly completed and submitted Commumty Services staff will make copies of warranties and other documentation The apphcant will receive original warranty and guarantee documents The Commumty Services D~ws~on wdl retain cop~es of these documents for the file 2 Warranty of Work- As stated in the rehabihtatlon contract, the contractor shall guarantee the work performed for a period ofat least one-year from the date of final acceptance The contractor wdl return m thirty (30) days andsk the apphcant ff any additional repairs ara necessary Any deficiencies or necessary repmrs to specffied work wdl be completed at this t~me If no repairs are needed, the contractor will request that the apphcant release the contingency payment VII. Payment To Contractor The contractor shall receive payment, m~nus contlngencyamount, for all completed contractsw~th~n 15 work~ngdays after final mspection approval The contingency amount equals 10percentofthetotalcontractamountandw~l~ew~thheldfor thirty (30) days from the date of final acceptance by CD staff After thirty days, ~fno addmonalor warrantywork remains, the contractor must request from apphcant an approval to release w~thheld contingency funds A contractor may request ~nter~m payments throughout the course ofthe project Interim paymentswdl be made avadable to the contractor upon apphcant and ~nspector approval of any contract work that has been completed Contractor wall 12 submit a CONTRACTOR REQUEST FOR PAYMENT AND PERIODIC STATEMENT for 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 Services Division before final payment can be released to contractor All electrical, plumbing, mechanical and roofing permits and termite inspection reports must be submitted to the Community Services D~vision prior to releasing contingency payment to the contractor VIII. Contractor Debarment A contractor will be declared ineligible to partic~pate in projects funded by the City of Denton's Home Improvement Program for one or more of the following causes 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 habihtyand bmlder'srisk (if applicable) 5 Failure to complete work in accordance with program spee~fications and/or accepted standards of workmanship 6 Failure to pay all subcontractors working on the project approprmtely and/or by not submltt~ngaffidavltsofpayment signed by all subcontractors 7 Failure to obtain proper permits for work in progress 8 Failure to treat applicants w~th respect and courtesy Contractors will be notified of their proposed debarment and will be afforded the opportunity to comment or appeal the action AllappealsmustbemademwritmgtotheCommumtyServicesDlv~slon bythe 15th day from the date of the notification letter Contractors debarred from the Home Improvement Program may no longer contact apphcantsreceiwngCDBG or HOME grant funds with the intent of providing a bid for a project Optional Reconstruction Program Description Of Program Procedures Unless hereto stated otherwise, the general operating procedures contained m the City of Denton's Commumty Services Home [mprovement Program Gmdehnes wall be followed I. PurPosE A The City of Denton, Texas, will provide assistance necessary to accomphsh the reconstruction ofdwelhngs not feasible for rehablhtatlon The Optional Reconstruction Program will provide funds to demolish existing 13 dfiapida[ed dwelhngs and reconstruct adequate, decent, safe and samtary replacement dwelhngs In addition, the City will also promote the elimination of slum and bhght that exists m the C~ty B Reconstruction payments and assistance will be carried out under the City of Denton's Commumty Serwces Program as an ehglble expense from project funds Assistance shall be subject to the avafiabfl~tyofgrant funds and U S Department of Housing and Urban Development (HUD) ~mplementmg regulations Administrative procedures will be modified to meet any change m rules and regulations of HUD that may occur over t~me II. DESIGNATED AUTHORITY A Administrative authority for ~mplementatlon of the program will rest w~th the C~ty of Denton's Commumty Serwces Division This office will serve as the approwng office for rehousing agreements and for contractual and budget changes as needed for project completion B The Community Development Administrator will have the respons~bfl~tyfor final determination of the amount of reconstruction assistance to be made available to md~wdual apphcants m accordance with the ~mplementmg procedures C The Commumty Development Administrator will be responsible for approval of apphcant ehg~bfi~ty for the program and final approval of selection of apphcants to be assisted Th~s will be based upon relative need of applicants on the City's list of houses that have been determined ~nfeas~ble for rehablhtatlon under the Home Improvement Program III. IMPLEMENTATION PROCESS Steps m implementing the program will be as follows A Community Services Division maintains the hst of apphcants to the Home Improvement Program When a determination has been made that the structure ~s not feasible to rehabilitate to minimum standards under the C~ty's Home Improvement Program Ehglble apphcants will be assisted m the reconstruction of their home They will be assisted ~n the Home Improvement Program Wmtlng List order B Apphcant is notified that the rehabilitation of the structure has been determined to be infeasible Ehgibfi~ty requirements for the Optional Reconstruction Program must be met for applicants to be placed on the Optional Reconstruction Program wamng list C Staffevaluatesapphcatlonsforreconstruct~onasslstanceasspec~fiedmSect~onVl Staffprocessesapphcat~ons as possible under funding and staff hm~tatlons D Apphcant ~s informed of available assistance E Apphcant submits an OpttonalReconstructtonProgn~nApphcatwn & Tempora~.Relocatton Ouestlonnatre acknowledging receipt of information explammgthe City's program,and requesting reconstruct~onass~stance to enable applicant to obtain statable and adequate housing F Community Services Staff determine whether approval of apphcant'sOpttonal Reconstructton Program Appltcatton& Temporal. Relocatton Questtonnatrereasonably may be expected to result m the successful and feasible rehousing of the apphcant In cases where the apphcant's general health or ~ncome level would preclude hm or her adequate and responsible operation of a replacement dwelhng, and/or cases m which the costs of the replacement dwelling would be substantially above the costs of typical cases, and to the extent that the probablhty of the City reaching its Commumty Services Program goals would be endangered due to cost 14 overruns, the apphcant's request may be demed The apphcant will be notffied m writing ofthe determination and, ifthe request is not approved, the reasons for demal When the determination ~s approvalofthe apphcant's request, a Notice of Approval will be sent lnfonmng the applicant that the City ~s authorized to enter into a rehousing agreement with the apphcant for a specffied Replacement Housing Payment determined appropriate by the c~ty pursuant to ~ts Reconstruction Pohcy Before any agreement being executed between the apphcant and the C~ty, the Community Services D~wslon will comply with the public d~sclosure and notffication/authorlzat~on 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 ~s executed between the applicant and the City, under the terms of which the apphcant agrees to move permanently and voluntarily from the dwelhng on or before a specified date H Community Serwces Staffw~ll provide counsehng and assistance as needed to applicants in order to faclhtate the applicant's rehousing, including referrals to budders, supphers, etc I The apphcant and the Community Services D~ws~on agree to the arrangement and method of the approved payments, the apphcant will execute a contract with a builder for the selected replacement dwelling The apphcant wdl also contract for the demoht~on of the substandard dwelling and for lot and site clearance and preparation J When appropriate, the applicant voluntarily vacates the substandard dwelling K The replacement dwelhng is constructed on the same lot as the original and is inspected by the City Building Inspecnons Dlws~on to determine adequacy and comphance with C~ty codes L Ctty certifies that the replacement dwelhng is decent, safe, and sanitary and ready for occupancy City issues a final building inspection M Apphcant accepts replacement home N A formal closing ceremony Is held and applicant acknowledges receipt of payment schedule O Upon completion of all actions m regards to reconstruction, apphcant acknowledges in writing that all payments, assistance, and conditions of the rehousing agreement have been received to the applicant's satisfaction P Applicant occupies replacement structure IV. ELIGIBILITY REQUIREMENT8 Ehglbdlty 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 Apphcant 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 whmh 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 apphcatlon for reconstruction assistance 15 D Apphcant has presented proof of ownership by General or Special Warranty deed (C~ty staffvenfies proof of ownership through a role search E The total amount ofex~mng hen(s) cannot exceed 70 percent of the property's current apprmsed value as set by the Denton Central Apprmsal Dlsmct (Note The C~ty ofDenton reserves the rlght to request an lndependent market analys~s ) F Applicants shall provide complete and accurate ~nformat~on regarding their household composmon, household income, and housing sltuauon Failure to disclose reformation that may affect ehg~bdayrequ~rementsshall also consmute fraud Applicants shall be required to make full remtuUon to the City m the event Commumty Services D~vls~on serwces are provided to applicants who provide inaccurate or ~ncomplete reformation in order to meet eligibility requirements G Apphcants must demonstrate that their income exceeds their projected housing expenses H Applicants agree to conform to Denton Code Enforcement requests prior to being determined ehglble for replacement housing assistance Apphcants agree to mamtalndwelhng and exterior grounds ~n accordancewlth applicable c~ty ordinances I Applicants are reqmred to attend the Successful Homeownershlp Workshop, wah emphas~s being placed on mmntenance, budgeting, cost effective decorating, and respons~bdmes of home ownership J Applicant may be required to apply for a loan to provide the program-required personal contnbuuon V. FEASIBILITY FOR RECON8TRUCTION Feasibility for reconstruction is based on determining allrelated costs to complete a reconstruction project Total project costs cannot exceed the maximum amount allowed as set by tl~ current Sectmn 221 (d)(3) Lowest Home Per- Umt Subsidy Limits for the State of Texas as set by the Department of Housing and Urban Development (HUD) Project costs include, but are not hmlted to, the cost of demolmon, s~te preparation, cost of replacement dwelhng, t~tle search fee, and/or required Cay permit fees for construction VI. SELECTION OF RECIPIENT8 FOR ASSISTANCE A lmtml recipients of this program will be taken from the hst ofapphcants residing ]n structures determined to be infeasible to rehablhtate Additional recipients wdl be added dunng subsequent operation of the C~ty of Denton's Home Improvement Program B The number of recipients to receive assistance will be subject to avadabd~ty of funds C Applicants wdl be placed on a waiting list for reconstruction assistance based on the time and date they originally apphed to the Commumty Services D~wslon for rehabd~tat~on 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 C~ty will follow the standards consistent with the Community Serwces D~vts~on Replacement Housing Space Allowances Policy when considering the number of bedrooms needed to avoid overcrowding 16 C The Ctty of Denton has FOUR FINANCIAL ASSISTANCE CATEGORIES for those who qualify for thc Optional Reconstruction Program These categories are based on theQuahfymg Income L~mlts and Ranges for the City of Denton's Federally Assmted Programs (see appendix 1 to these guidelines for current income hmlt ranges) A description of the financial assistance categories and their requirements are 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 loanwith the loan amount being based on 70 percent of the total City-funded project cost amortized over 240 months The hen wdl not be released on this part ofthe loan until all 240 payments are received in full by the City of Denton, and b a deferred payment loanwith the loan amount being based on 30 percent of the total City-funded project cost A detaded description ofthe deferred payment loan is found below at the end of section VIl C 4 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 loanwith 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 ofthe deferred payment loan IS found at the end of section Vll C 4 3 20 Percent Reconstruction Loan / 80 Percent Deferred Payment Loan Apphcants whose gross annual household income falls above 30 percent up to 50 percent of the area median family income hmlts will quahfy for this two part loan, a 3 percent interest loanwith the loan amount being based on 20 percent of the total Cltyfunded 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 ~s found at the end of section Vll C 4 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 loanwlth 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 th~s 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 project cost A detailed description ofthe deferred payment loan IS found at the end of section VII C 4 *DESCRIPTION OF A DEFERRED PAYMENT LOAN A deferred payment loan shall carry 0 percent interest and contlnueuntd the apphcant satlsfiesthe conditions listed m the deed of trust and promissory note executed prior toproject 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 contracts, the deferred payment loar~vlll be forgiven lfthe property is sold 17 or transferred before the hen period expares, the total deferred loan amount ~s owed and becomes due to the CommumtyServ~cesProgram Amounts receaved are used as program lncome TheCatyofDentonwfilbemthe first lien posat~on on all reconstructed dwellings However, in satuatlons where first hen position m not feasible, the C~ty will accept a second hen posatlon subject to the revaew and approval of the Commumty Development Admamstrator The ben wdl not be released unless the following conditions are met The apphcant must reside an the umt for the full period of the ben 2 The property must be mmntamed to meet C~ty code requirements 3 Mortgage payments must be met on a t~mely basis 4 Home appbcant must promde doeumentataon of adequate homeowner's insurance, including casualty and fire coverage, and the C~ty must be lasted as a Mortgagee on the Certificate of Insurance to be notffied m case of pohcy cancellatmn Homeowner's Insurance documentataon must be received prior to apphcant mowng m to completed reconstruct house NOTE The Deed of Trust Contract requires the apphcant, upon completion of the reconstruction, to maintain and/or purchase, for the full length of time whach the Caty of Denton will have a hen on property,an insurance policy that covers the home for its full insurable value, provide fire and extended coverage, lncludI~lg windstorm coverage, provides flood insurance at any time property is in a flood hazard area Apphcant agrees to comply at all times with the reqmrements of the 80 percent coinsurance clause, and keep any buildings occupied as required by the insurance pohcy 5 If wath~n the period of the hen the apphcant defaults on their deferred payment loan or the payable loan, the lien will be called due an full and foreclosure proceedings may be ~nlt~ated The City wall make every effort to work w~th the apphcant to avoid foreclosure and will examine each s~tuatmn on a case by case bas~s Repayment Pohcy for Fmancml Assistance The apphcant must agree to have a hen placed on thear property until they have satmfied the requirements ofthe promissory note The hen wall remain until the loan has been paid In full If for any reason the loan recipient decades 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 In the event of the death of the owner(s) prior to the maturity date, or the owner(s) can no longer reside m the property due to a permanent medmal condataon, and the legal he~rs to the property decide to sell the property, the amount to be repmd to the Caty of Denton wall be the lesser of a~l 75 per~ent ~f the pr~perty~ s market va~ue (based ~n aCtty-appr~ved ~ndependent apprmsa~ at the t~me of sale), or, ~__~_The payoff balance of the loan due the City of Denton at the t~me of the owner(s) death or the date the owner(s) no longer resided an the home Liens wall remain m effect until the grantee has met all requirements as specffied in the prom~ssorynote In the event of the sale of the property, any unpmd balance of the loan and the total deferred loan amount will become due lmmedmtely If, ~n the event of the death of the grantee, a family member who meets the Program's income limits should take up residency an thc property, s/he must apply to the Commumty Services D~ws~on for continued assistance wath the loan The assistance level wdl be based on current-yea~program gmdelmes and s/he will be reqmred to sagn an AdJustment and Extension of Note and L~en NOTE L~ens estabhshed as a result of an agreement with the City of Denton for a reconstruction loan cannot be subordinated to future hens on the property unless 1 the new lien places the C~ty in no less than a second hen position, and 2 the new loan refinances the original mortgage loan with no significant increase in the 18 mortgage amount; or 3 the new loan is used to fund additional home improvements and the total of all loans does not exceed the appraised property value G Allowable expenses will include Cost of total demoht~on and clearance of the ddapMated structure, lot clearance, and preparat~onofjob s~te for new replacement dwelhng 2 Cost to reconstruct safe, samtary, decent replacement dwelhng 3 Other expenses the Commumty Services D~v~slon determ~nesto be necessaryto faclhtatethe reconstruction of the substandard property H Commumty Services staff w~ll also prowde assistance and counsehng to applicants as needed, including the following Information on the program and rehousing options avmlable 2 Assistance m sohc~tmg b~ds for replacement housing 3 Assistance m contractual comphance between apphcant and contractor 4 Assistance ~n inspection of construction of replacement dwelhng, if apphcable If, after the loan payback begins, a household experiences apermanent, substantml loss of household income, an apphcant can request a re-evaluation of their total annual gross household income Th~s evaluation may result m a decrease ~n the payable porhon of the note The loss of income must be from an mcome-earnmg apphcant(s) whose tncome was used m determmmg the ortgmal loan asststance category Please note Loss of employment (voluntarily or ~nvoluntardy) is not considered a"pennanent loss' For purposes ofth~s program"permanent loss" ~s defined as death 2 retirement (must be 62 years of age or older) 3 permanent dlsabd~ty 4 Other substantial permanent loss of raceme, when approved by Communtty Development Adrmmstrator All household members must complete all raceme mformat~on and forms as reqmred lr~ectton H- ,4ppltcatton Processing to determine if an adjustment and/or extension to the payable port,on of the note ~s ehglble A determ matron wdl be made after evaluatlngthe household s~ze and ~ncome using the program gmdehne ~ncome hm tts and financml assistance categories that are being used at the t~me the request for reduced loan payment ~s made When a loan adjustment and/or extension ~s granted, the apphcant must sign an4dlustmentandModtficat~onofNote and Lten contract reflecting the adjustment and/or extension of the note VIII. REHOUSING AGREEMENT Each apphcant assisted through the program will s~gn arehousmg agreement w~th the City, which outhnes the respons~blhtles of each Theagreement estabhshes a date on wh~ch the apphcant agrees to permanently vacate the present structure, agrees to demoht~on of the present dllapMated structure, agrees to occupy the replacement 19 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 ldentffied 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 20 APPENDICES Appen&x 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 Apphcat~on and Temporary Relocation Questionnaire Appen&x 4 Optional Reconstruction Program Rehousing Agreement for Apphcants 2! APPENDIX 1 FY 2001/2002 City of Denton - Commumty Services D~v~s~on Quahfying Income Limits for Federally Assisted Programs Maximum Income Levels and *Two-Part Loan Percentages *70% Payable Loan I *40% Payable Loan/ *20% Payable Loan/ *10% Payable Loan/ Family *30% Deferred Loan *60% Deferred Loan *80% Deferred Loan *90% Deferred Loan Owner Provided Funds Owner Provided Funds Owner Prowded Funds Owner Prowdad Funds Size 1% of Total Cost 75% of Total Cost 5% of Total Cost 25% of Total Cost Moderate income Low income Very Low Income Extremely Low Income 80% AMI - <65% AMI 65% AMI - <50% AMi 50% AMI - <30% AMI ~30% AMI 1 $36,050 - 29,316 $29,315 - $22,551 $22,550 - $13,531 $13,530 or Below 2 $41,200 - $33,476 $33,475 - $25,751 $25,750 - $15,451 $15,450 or Below 3 $46,350 - $37,701 $37,700 - $29,001 $29,000 - $17,401 $17,400 or Below 4 $51,500 * $41,861 $41,860 - $32,201 $32,200 - $19,321 $19,320 or Below 5 $55,650 - $45,241 $45,240 - $34,801 $34,800 - $20,881 $20,880 or Below 6 $59,750 - $48,556 $48,555 - $37,351 $37,350 - $22,411 $22,410 or Below 7 $63,900 - $51,936 $51,935 - $39,951 $39,950 - $23,971 $23,970 or Below 8 $68,000 - $55,251 $55,250 - $42,501 $42,500 - $25,551 $25,550 or Below *In this two-part loan Part l Payable Loan is based on a percent of the total City-paid cost to rehab~htate or reconstruct The payment ~s payable and amortized over not less than 60 to 180 months (5 to 15 years based on cost of the project see Section Ill B for rehabdltabon and not less than 240 months (20 years) for reconstruction at a 3 percent interest rate (APR) Part II Deferred Payment Loan is based on a percent of the total City-paid cost to rehabilitate or reconstruct This porbon of the loan carries a zero percent interest rate The deferred payment loan continues until the apphcant satisfies the condltmns listed mtheDeedofTrustandPromlssoryNote(executedprlortotheprojectstartdate) There are no monthly payments Deferred payment loans are secured by a lien on tho property The loan deferral period is not less than 60 to 180 months (5 to 15 years based on cost of the project see Section III B for rehabthtatlon and not less than (20 years) for reconstruction Income Limit Source U S Department of Housmg and Urban Development Effective April 2001 Gross income for all household members aged 18 and above must be included to determine household's ehg~blhty to receive assistance, however, some household members' incomes may be excluded when determining the payback category that the ehglble household will be approved for They are applicant's children, 22 APPENDIX 2 City of Denton, Texas Targeted Neighborhoods Map 23 APPENDIX 3 OPTIONAL RECONSTRUCTION PROGRAM APPLICATION AND TEMPORARY RELOCATION QUESTIONNAIRE Your participation ~n the Optional Reconstruction Program ~s voluntary Reconstruction funds are hm~ted Therefore, the Program does not cover costs necessary for household to relocate during reconstruction of property Please complete the following question nalre This information wdl help our staff in determining ~f you w~ll be ehglble for the Optional Reconstruction Program I understand that It Is my respons~bd~ty to relocate my household and that I am responsible for all costs ~nvolved to do so? Yes No 2 I understand that as a result of reconstruction, my appraised property value may ~ncrease s~gmflcantly from the amount at which ~t ~s currently valued? Yes No 3 I understand that an increase ~n my property value may cause my property taxes to increase by a slgmflcantamount I am financially prepared to meet any ~ncrease'~ Yes No 4 I understand that I am obligated to carry homeowner's ~nsurance for the duration of the hen (15 years) that the City of Denton will have on my property Yes No 5 I understand that my homeowner insurance premium wdl most hkely ~ncrease as a result of the reconstruction I am aware that my ~nsurance pohcy must cover the after-reconstruction appraised value of my property I am financially prepared to meet this increase Yes No 6 I understand that I must request that my ~nsurance company hst the Qty of Denton as a "Certificate Holder" on my pohcy? Yes No 7 I understand that The Qty of Denton is limited ~n the amount of funds they can spend to reconstruct a property I have been bnefed on these hm~ts and understand that my ehg~bd~ty for the Optional Reconstruction Program wdl be granted only if ~t is determined that the total of all costs involved to reconstruct my property w~ll be at or below the allowable program hm~t Yes No This APPLICATION was completed by Owner Name on Date $~Rned By s~gmng below, I am requesting that the Qty of Denton's Commumty Services D~ws~on accept this as my apphcatlon to be considered for the Optional Reconstruction Program Apphcant's S~gnature Date 2.d Apphcant's S~gnature Date 24 APPENDIX 4 CITY OF DENTON °7° COMMUNITY SERVICES DIVISION 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 Apphcants Th~s agreement covers the structure occupied at the follow~nglegal address (Legal property description of dwelling to be reconstructed) WHEREAS, The Apphcant has heretofore requested and quahfied forthe Home ImprovementProgramw~th ass~stancefmmthe C~ty~n order to obtain adequate, decent, safe, and samtary housing under the City's Commumty Development Block Grant and HOME Program, and WHEREAS, the C~ty has determined that rehab~htat~on of the Apphcant's residence is not a feasible alternahve, and WHEREAS, the C~ty has determined that the Commumty Services Program w~ll not provtde the Apphcant relocation payments and assistance necessary to accomphsh the voluntary relocatron of the Apphcantfrom the substandard,unrehababledwelhngcurrentlyoccup~ed ~nto an adequate, safe, and samtary replacement dwelhng NOW, TH EREFORE, the C~ty and the Apphcant for and ~n cons~derabon of the covenants and promises as here~nafterset forth, do agree as follows The Applrcant agrees to vacate permanently the currently occupied substandard dwelhng w~th~n 10 days not,ce by the C~ty for the need to vacate 2 The Apphcant agrees and hereby authonzes the demohbon and removal of the currently occupied dwelhng and clearance by the C~ty of the property The Apphcant further releases the C~ty from any and all claims arising from th~s action 3 The Apphcant agrees to take possession and occupy the replacement dwelhng when such dwelhng ~s completed and the C~ty determines ~t to be ready for occupancy The Apphcant further agrees to s~gn any required instruments to effect th~s ~tem 4 The Apphcant agrees to prowde and bear all financial costs necessary to relocate Apphcant's household and furmsh~ngs w~thout assistance from the C~ty of Denton 5 The maximum budget authority for the Optional Reconstruction Program ~s (Maximum allowable funds for prolect), which ~ncludes, but ~s not hm~ted to, property t~tle search fee, the cost to demohsh the ex~st~ng d~lap~dated structure and the cost to reconstruct an adequate, decent, safe, and samtary replacement dwelhng on the ong~nal s~te (lot) of the dwelhng vacated by the apphcant 6 Apphcant agrees to the t~me hm~tabons as set forth ~n the Opt~onai Reconstrucbon Gu~dehnes ~n which to be moved from the substandard property Apphcant' S~gnature Date 2® Applicant' Signature Date CITY OF DENTON Community Development Administrator