BILL NO. 404 ORDINANCE NO. 230
PRIVATE PROPERTY OWNER PROCUREMENT DOCUMENTATION
QRDINANCE
AN ORDINANCE ADOPTING HOUSING REHABIUTATION PLAN FOR THE CITY OF BROWNING,
MISSOURI.
BE IT ORDAINED BY THE BOARD OF ALDERMEN OF THE CITY OF BROWNING, MISSOURI, AS FOLLOWS:
SECTION 1: That the Rehabilitation Program Plans and Policies governing the operation of the City of Browning Housing Rehabilitation Program made available by Community Development Block Grant Funds awarded in 1996 attached hereto as Exhibit "A" is hereby adopted.
SECTION 2: That all ordinances and parts of ordinances in conflict herewith are hereby repealed.
SECTION 3: That this ordinance shall be in full force and effect from and after its passage and approval.
READ THREE TIMES AND PASSED THIS 7th ______ DAY OF October 1996.
Eldon Head, Mayor
ATTEST:
Clerk
Nancy Smith
APPROVED THIS 7th DAY OF October 1996.
Eldon Head, Mayor
Exhibit A
REHABILITATION GRANT APPLICATION
REHABILITATION PROGRAM PLAN AND POLICIES
I/We , as a private property owner within the
City of Browning, Housing Rehabilitation target area, have selected __________________________ as a contractor to perform housing rehabilitation work on my property located on ____________ _____________ Street.
The following contractors were contacted to perform work
The following number of bids were submitted for my property rehabilitation work:
1 2 3 4 5 6
STEPS IN PROCESS
The rehabilitation grant administrator will conduct a public hearing in an attempt to notify individuals within the project area about the housing rehabilitation program. At the meeting, applications will be provided to all occupants residing within the project area.
1. Once the homeowner/occupant has retumed an application, his/her name will be added to the waiting list. Prior to the inspection, the homeowner/occupant should organize his/her financial records to provide to the City of Browning rehabilitation administrator for verification. Upon verification of income by the appropriate official and certification of ownership, and inspection of the premises by the CDBG building inspector will be scheduled. The scheduling of the inspection and acceptance of an application is on a first come, first serve basis, unless an emergency exists to a qualifying individual, whereby, the City will direct the inspector and rehabilitation administrator to promptly remedy the apparent problem.
2. The rehabilitation administrator will verify income, ownership, and report on any back taxes owed to the City.
3. A full inspection will be done on the interior and exterior of the building with the inspector and homeowner/occupant present. Correction of code violations and compliances with the Department of Economic Development's Housing Quality Standards will be the criteria for inspection. The homeowner can discuss with the building inspector anYother desired work in some instances. This extra work may be allowed. This determination is made by the inspector and rehabilitation administrator.
4. The building inspector will then prepare a preliminary inspection report listing all the required and allowable work and the method as how the work will be done, the preliminary inspection report will be followed by a list of specifications and cost estimate as prepared by the housing inspector. The specifications and detailed description of the work to be completed will be gone over carefully with the homeowner and occupant, with them signing an affidavit of service certifying that they understand what will be rehabbed on their structure.
5. Upon approval by the homeowner and occupant, the City will advertise for contractors in the local paper no less than 10 days prior to bid opening. The advertisement will state where the contractors can pick up the bid packets and time and place of bid opening. The bid will be awarded shortly after bid opening after all considerations are weighed. The City will take into consideration past performances and contractors ability before awarding the bid.
6. The contract stipulating a time frame for construction to begin and completion dates will be signed by all parties and known as a third party contract. No "do it yourself" contracting is allowed on rehabilitation projects.
7. All lien waivers must be provided prior to payment being rendered.
8. All work will be performed in accordance with the Contract and Housing Rehabilitation Specification handbook provided to every contractor participating in the bidding process.
9. At no time, will the contractor undertake any work that is outside the exact specification being contracted for without the consent of the building inspector. The building inspector, rehabilitation administrator or chairman of the Administrative Committee will have the authority to sign off on all change orders. If additional work is done without approval, then it is the responsibility of the contractor.
10. When the work is complete, the rehabbed house will be inspected by the building inspector. If all work conforms to the specifications, the rehabilitation administrator will process payment. At the final inspection and before a payment request, the contractor must present his total bill, lien waivers, and any lien waivers from subcontractors.
11. The work performed by the contractor has a warranty of one year. Should any problems arise as a result of the rehabilitation, the homeowner/occupant may contact the building inspector or rehabilitation administrator. The homeowner/occupant is responsible to maintain his/her dwelling up to the standard codes.
Any appeals regarding the eligibility of the applicant, or allowable work, may be made to the City Council Administrative Committee.
12. Repayment Schedule
Within six (6) months 95%
Six months to one year 75%
One year to two years 50%
Two years to three years 25%
After three years 0%
Property Eligibility
Eligibility for rehabilitation assistance is determined as follows:
1. Property Location: All property receiving rehabilitation/demolition assistance must be located within the project boundary area. Project boundary area is known as a neighborhood on the southeast part of the City, bounded by Main Street on the north, State Highway S on the west, the City limits on the south & Alonzo Street on the east.
2. Property Condition: Rehabilitation assistance may be made only with the request of properties that fall below minimum Housing Quality standards as set forth by the grant guideline administered by the Missouri Department of Economic Development. The two categories are: 1) Health and safety standards and 2) Livability standards.
This program is designed to assure that 80% or more of all homes rehabilitated will meet the higher livability standards as set forth by the Department of Economic Development.
The existing condition of a housing unit and the feasibility of bringing it up to the standards with the $14,000.00 per unit ceiling will be determined by an inspection, work write up, and cost estimate conducted by the City of Browning, CDBG Building Inspector.
PRIORITY RATING GUIDE
Points
Very Below Income S
Elderly (age 62) 10
Handicapped/Disabled S
Female Head of Household S
Large Family (6 in home) 10
Bnng Home to Code 10
Eliminate Hazardous Conditions 5
The total of 50 points can be awarded. Those who rank with the highest number of points number of points will have priority in the rehabilitation process of homes. This priority rating system will be used only to provide a rating if more than 20 applications are in place for assistance.
A. Introduction
This rehabilitation plan and guidelines sets forth the policies and procedures governing the operation of the City of Browning housing rehabilitation program made available by Community Development Block Grant funds awarded in 1996. (Project number is 96-ND-02)
This rehabilitation program will provide financial assistance for the rehabilitation of all substandard housing units owned or occupied by low and moderate income persons living within the project areas. All rehabilitation work will correct deficiencies in the eligible homes and make the newly rehabbed houses safe, sound, and sanitary for their occupants. The rehabilitation process will be done in rigorous compliance with all applicable Housing codes and ordinances.
Though rehabilitation is the primary focus of this progress, neighborhood restoration and rejuvenation is its intended objective. At times, to complete this objective, it will be necessary to demolish those structures deemed "unrehabbable" by our building inspector Harold Boyd, Humphreys, Mo.
B. Definitions
Applicant The "applicant" shall include all persons having legal or equitable title to the structure for which a rehabilitation grant is requested, including non-resident owners. Land sales contracts and life estates shall be considered as homeownership.
Building Inspector. That person contracted by the City of Browning to perform building inspection services specifically for the rehabilitation program.
Citizen's Advisory Board: A group that will serve the governing body of the City of Browning in
# 229 pertaining to the City's 1996 Community Development Block Grant (See Ordinance establishing Board and duties)
Housing Ouality Standards (HOS)~: The local minimum property standards, Department of Economic Development standards, and other regulations for the general health, safety and public welfare of the residents, and by which a project will be rehabilitated to.
Housing Rehabilitation Administrator. That person contracted by the City of Browning to perform the contract obligations.
Income: Actual monies received from salaries, wages, interest, dividends, capital gains, rental income, Social Security benefits, Supplemental Security Income (SSI), Aid for Families with Dependent Children (AFDC), and any other source.
Low Income: That level of income which when combined with family size, relates to eligibility for the rehabilitation program. These low income levels have been established by D.H.U.D. and are published and periodically updated in the Federal Register.
Mixed-Use Property: A property under single ownership and legal description, including ownership as joint tenants in common, that after rehabilitation, will be used in some part for residential purposes and in some part for non-residential purposes as permitted under local law.
Owner-Occupied Prooerty: A property used entirely for residential purposes that is occupied by the owner and containing one (1) to four (4) dwelling units.
Rehabilitation Repairs, reconstruction, or additions to an eligible structure necessary to improve it to the minimum standards as required by the Housing Quality Standards.
Rehabilitation Cost The total cost of repairs, equipment, and improvements and other costs for rehab to be incurred by the applicant and included in the grant.
Rehabilitation Grant: An amount of money given to the person or family for the purpose of rehabilitating their home.
Rental Property: A property used entirely for rental purposes that is not occupied by the owner. This property may be eligible for rehabilitation if the owner and renter qualify.
Section B: The section of the U.S. Housing Act of 1937, as amended, which mandates the Section
8 Existing Housing Assistance Payments Program (Existing Housing) and the Section 8 Moderate
Rehabilitation Housing Assistance Payments Program (Moderate Rehabilitation) both of which
are rent subsidy programs.
Size of Family: The number of persons living in one dwelling unit.
Very Large Families: Families having six (6) or more members living in a single dwelling unit.
C. Program Resources
The source of funds for the undertaking of rehabilitation and demolition activities is as follows:
$557,000.00 CDBG Funds; $27,000.00 Local; $5,100.00 In-Kind; =
$589,100.00 (104,100.00 for Public Facilities)
These funds represent a sizable commitment by the City of Browning substantially improve the quality of life for citizens residing within the project areas.
D. Income
The intent of this program is primarily to provide assistance to "low and moderate" income persons. The standards for "low and moderate" income persons are as follows:
Family Size Total Annual Gross
Household Income
1 16,850
2 19,250
3 21,650
4 24,100 12/7/95
5 26,000 LMI Standards
6 27,950
7 29,850
8+ 31,800
To obtain full financial assistance, the occupant must be at or below the above stated income limits. In cases where the occupant is a tenant, the landlord must be below the previous listed income standards for 100% financial assistance. Should he/she exceed the income limits, then and "up front" contribution of 25% of the project cost must be deposited with the City of Browning prior to initiation of the rehabilitation.
Income eligibility will be determined from "gross" income of the owner and of the occupant. The income limit must be verified from the following documents supplied prior to contracted date for rehabilitation.
1. Signed Federal and State Income Tax returns
2. W-2
3. Cancelled pay stubs
4. Third party verification (AFDC, SSI, etc.)
E. Landlord/Tenant Relationships
Landlords participating in this program must execute a three (3) year "rent freeze" agreement as a prerequisite to their involvement in the program. This "freeze" insures to the maximum extent feasible, that present low and moderate income tenants will not be "priced out" of rehabilitated housing repaired with program funds. The rent freeze will require that rents of units to be rehabilitated under this program, be frozen at their present level during rehabilitation. A "once a year" rent adjustment, not to exceed the applicable consumer price index, may be allowed by the governing body beginning one year from the date of the agreement The rent freeze would remain in effect for the initial three (3) years, by recorded agreement.