HomeMy WebLinkAbout2015 01.05 City Council Work Session Agenda City of Apache Junction, Arizona Meeting location
City Council Chambers
at City Hall
Agenda 300 E Superstition Blvd
Apache Junction,AZ
City Council Work Session 85119
www ajcity net
Ph (480)982-8002
Monday,January 5,2015 7.00 PM City Council Chambers
A. CALL TO ORDER
B. ROLL CALL
C. AGENDA ITEMS
1. Discussion on proposed cable TV agreement between the City of
Apache Junction and CenturyLink Bryant Powell, Assistant City
Manager, and representatives from CenturyLink will lead the
discussion Presentation and discussion.
2. Presentation by and discussion with City Attorney on City Code,
Volume 1, Chapter 14, Cable TV provisions. Presentation and
discussion
3 Presentation and discussion on Resolution No 15-06,
recommending the city's Fiscal Year 2015 Local Transportation
Assistance Fund II allocation be directed to the Apache Junction
Active Adult Center(dba East Valley Adult Resources) for
support of transportation services and authorizing the Mayor to
sign a pass-through agreement Presentation and discussion
4 Presentation and discussion on Resolution No 15-02, committing
local funds as leverage for a Fiscal Year 2014 State Special
Project application Presentation and discussion
5. Presentation and discussion on proposed Resolution Nos 15-03
(Authority to submit), 15-04 (Commitment of local funds), and
15-05 (Adoption of housing rehabilitation guidelines) regarding
the submission of a Fiscal Year 2014-15 State Housing Fund
grant application. Presentation and discussion
6 Discussion on Paws and Claws Care Center policy regarding
adoption of animals at events. Discussion
City of Apache Junction,Arizona Page 1 Printed on 1212912014
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City Council Work Session Agenda January 5,2015
D. ADJOURNMENT
Copies of this agenda and additional information regarding any of the items listed above may be
obtained Monday through Thursdays, 7 00a—6 00p, excluding holidays, from the City Clerk's once
located at
300 East Superstition Boulevard,Apache Junction,AZ
The City of Apache Junction invites and welcomes people of all abilities to use our programs, sites and
facilities Specific requests may be made by contacting the Human Resources Office at(480)474-2617
or TDD(480) 983-0095
i•,
City of Apache Junction,Arizona Page 2 Printed on 1212912014
City of Apache Junction, Arizona 300 E Superstition
Boulevard
Agenda Item Cover Sheet Apache Junction Az 85119
Agenda Item No. 1.
File ID: 14-635
Sponsor: Joel Stern and Bryant Powell Agenda Date 1/5/2015
Index: In Control. City Council Work Session
,.•►
Discussion on proposed cable TV agreement between the City of Apache Junction and
CenturyLink Bryant Powell,Assistant City Manager, and representatives from CenturyLink
will lead the discussion Presentation and discussion.
Attachments.
Aak-
City of Apache Junction,Arizona Page 1 Printed on 1212912014
THERE IS ADDITIONAL
INFORMATION ON THIS ITEM
IN THE REGULAR MEETING _
SECTION UNDER ITEM �1
City of Apache Junction, Arizona 300ESuperstition
Boulevard
Agenda Item Cover Sheet Apache Junction,Az 85119
Agenda Item No.2.
40 File ID: 14-636
Sponsor Joel Stern Agenda Date- 1/5/2015
Index In Control- City Council Work Session
Presentation by and discussion with City Attorney on City Code, Volume 1, Chapter 14,
Cable TV provisions Presentation and discussion.
Attachments
City of Apache Junction,Arizona Page 1 Printed on 1212912014
THERE IS ADDITIONAL
INFORMATION ON THIS ITEM
IN THE REGULAR MEETING
SECTION UNDER ITEM
4 ►� ✓� City of Apache Junction, Arizona 300ESuperstition
Boulevard
5` Agenda Item Cover Sheet Apache Junction,AZ 85119
Agenda Item No.3.
File ID: 14-627
Sponsor. Heather Patel Agenda Date: 1/5/2015
Index:Community Development In Control-City Council Work Session
Presentation and discussion on Resolution No 15-06, recommending the city's Fiscal Year
2015 Local Transportation Assistance Fund II allocation be directed to the Apache Junction
Active Adult Center(dba East Valley Adult Resources)for support of transportation services
and authorizing the Mayor to sign a pass-through agreement Presentation and discussion.
Attachments.
City of Apache Junction,Arizona Page 1 Printed on 1212912014
40 City of,4pache Junction
Development Services Department
DATE: December 24, 2014
TO: The Honorable Mayor and City Council
THROUGH: George Hoffinan, City Manager
Larry Kirch,Development Services Director
Roger Hacker,Revenue Resources Manager
FROM: Heather Patel,Grants Coordinator
SUBJECT: Local Transportation Assistance Fund II Application for Fiscal Year 2015
REQUEST
Presentation and discussion on Resolution No 15-06 recommending the city's Fiscal Year 2015
Local Transportation Assistance Fund(hereinafter"LTAF") lI allocation be directed to the
Apache Junction Active Adult Center(dba East Valley Adult Resources)for support of
transportation services and authorizing the Mayor to sign a pass-through agreement
BACKGROUND
Pursuant to the court order filed in Paisley v. Darwin,the State Treasurer resumed distribution of
multi-state lottery game proceeds to the Public Transportation Fund in Mancopa County in
Fiscal Year 2012 To date, the Legislature has not enacted any statute that would supersede the
court order and Valley Metro Regional Public Transportation Authority ("RPTA") continues to
receive monthly distributions of lottery revenues for public transportation purposes Lottery
revenues for FY2015 are estimated to be$11,262,600
Maricopa County and jurisdictions within the county that receive LTAF funding are required to
use the funding for public transportation There is no local match requirement for these
funds.
Public transit is defined as any service, vehicle(s), or support facility for a velucle(s),
intended for the purpose of conveying multiple passengers (i a typically 5 or more) and winch
meets applicable state and federal safety and accessibility laws, rules, and regulations The
definition also includes the planning and administrative support for such services. It is the intent
of the program to provide funds for the purpose of providing transit service or facilities that is
available to the following populations.
• The general public,
• Elderly persons,
• Persons with disabilities,
• Welfare recipients and"low-income"persons engaged in employment activities.
Planning& Zoning—Building& Safety—Revenue Development
300 E Superstition Boulevard -Apache Junction,AZ 85119 - Ph (480)474-5083 • Fax(480)982-7010
.•. A-►
Funding will be distributed directly to eligible jurisdictions in the county and includes
Mancopa County, and cities and towns within the county
In the case of private, not-for-profit agencies and private, for-profit transit providers, the city
receiving the LTAF funding must enter into an agreement with the proposed operator to
provide the transportation service approved by the city council. The agreement,
accompanied by council resolution, must be available to Valley Metro RPTA as evidence of the
OO. agreement
DISCUSSION
To receive the funds allocated to Mancopa County communities, jurisdictions must apply
annually In FY 2015, Apache Junction will receive $867. An application was submitted to the
Valley Metro Regional Public Transportation Authority
Barring any objections, staff will place Resolution No. 15-06 on the January 20, 2015 consent
agenda
RECOMMENDATION
Staff respectfully requests, the city council receive a presentation and discuss Resolution No 15-
06 recommending the city's Fiscal Year 2015 Local Transportation Assistance Fund 11 allocation
be directed to the Apache Junction Active Adult Center for support of transportation services and
authorizing the mayor to sign a pass-through agreement.
ACTION REQUIRED
Presentation and discussion
Attachment 1 Resolution Number 15-06
Aftk Attachment 2• Grant pass-through agreement between the City of Apache Junction and East
Valley Adult Resources
Planning & Zoning—Building& Safety—Re>>enue Dei,elOpMenl
300 E Superstition Boulevard • Apache Junction,AZ 85119 ° Ph (480)474-5083 . Fax (480)982-7010
.� .�.
RESOLUTION NO. 15-06
A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY
OF APACHE JUNCTION, ARIZONA, AUTHORIZING SUBMISSION OF
A GRANT APPLICATION TO THE VALLEY METRO REGIONAL PUBLIC
TRANSPORTATION AUTHORITY FOR PARTICIPATION IN ITS
FISCAL YEAR 2015 LOCAL TRANSPORTATION ASSISTANCE FUND
II PROGRAM.
WHEREAS, the City of Apache Junction is desirous of
meeting the transportation needs of its citizens , and
WHEREAS, East Valley Senior Adult Resources, Inc ,
which manages the Apache Junction Active Adult Center, has
requested assistance from the City in meeting the transportation
needs of senior citizens residing within the City limits, and
WHEREAS, pursuant to Arizona Revised Statutes Section
28-8101, et seq. , the Valley Metro Regional Public Transportation
Authority ( "RPTA" ) is administering the Local Transportation
Assistance Fund (hereinafter "LTAF" ) II Program; and
WHEREAS, the activities within this grant address
identified community needs, and
WHEREAS, a grantee of LTAF II funds is required to
comply with the program guidelines and federal statutes and
regulations .
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AS FOLLOWS :
1) The Mayor and City Council of the City of Apache Junction
authorize application to be made to the RPTA for Fiscal Year
2015 LTAF II funds .
2) The City Manager or his designee is authorized to sign an
application for receipt and use of these funds in an amount
not to exceed $867 . 00 for East Valley Adult Resources, Inc.
for its transportation program for the Apache Junction
Active Adult Center.
3) The City Manager or his designee, is authorized to take all
actions necessary to implement and complete the activities
submitted in said grant .
4) The application for Maricopa County LTAF II funds meets the
program requirements for the transportation of senior
RESOLUTION NO. 15-06
PAGE 1 OF 2
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citizens, persons with disabilities and/or the general
public
5) The City of Apache Junction shall comply with all LTAF II
guidelines, federal statutes and regulations applicable to
the LTAF II Program
A'` PASSED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF
APACHE JUNCTION, ARIZONA, THIS DAY OF 2015 .
SIGNED AND ATTESTED TO THIS DAY OF 2015 .
JOHN S . INSALACO
Mayor
ATTEST:
KATHLEEN CONNELLY
City Clerk
APPROVED AS TO FORM:
RICHARD J. STERN
City Attorney
RESOLUTION NO 15-06
PAGE 2 OF 2
When recorded return to:
Richard Joel Stern, Esq.
Apache Junction City Attorney
300 East Superstition Blvd.
Apache Junction, AZ 85119
FISCAL YEAR 2015 GRANT PASS THROUGH AGREEMENT BETWEEN THE CITY
OF APACHE JUNCTION AND EAST VALLEY ADULT RESOURCES
THIS GRANT PASS THROUGH AGREEMENT (the "Agreement") is made as
of the day of 2015, by and between CITY OF APACHE JUNCTION,
ARIZONA, an Arizona municipal corporation ("City") and East Valley Adult
Resources, a nonprofit agency ("EVAR"). City and EVAR are sometimes
referred to herein collectively as the "Parties," or individually as a "Party."
RECITALS
A EVAR is a nonprofit organization which provides social,
recreational, fitness, advocacy, and transportation services at the Apache
Junction Active Adult Center for Apache Junction residents.
B. EVAR desires to utilize Local Transportation Assistance Fund II
("LTAFII") funding for transportation services in Apache Junction
C. The Valley Metro Regional Public Transportation Authority ("RPTA")
desires to convey to City a portion of its annual allocation required to be
paid to local governments for the benefit of public transportation,
pursuant to a court order filed in Paisley v. Darwin, U.S. Dist. Ct (Ariz.),
No. CV-10-1253-PHX-DGC, 2011 WL 3875992, resuming distribution of
multi-state lottery game proceeds to the Public Transportation Fund in
Maricopa County, for disbursement by City to EVAR.
D. City desires to disburse the aforementioned contribution to the
EVAR and to set forth the mutual understandings between City and EVAR.
E. There is a need for mutual cooperation for a pass through of grant
funds from RPTA to City and ultimately to East Valley Adult Resources.
F. Mutual cooperation would result in EVAR's obtaining assistance
from City, which translates to public savings.
1
G. The Parties have mutual interests in this project and wish to enter
into this Agreement with certain terms and conditions.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing Recitals and the
mutual promises and covenants set forth herein, and for other consideration,
the receipt and adequacy of which is hereby acknowledged, the Parties agree
as follows.
1. ACCURACY OF THE RECITALS: The Parties hereby confirm the
accuracy of the Recitals set forth above, which are incorporated herein by this
reference.
2. CITY'S OBLIGATIONS.
City agrees to do all of the following:
a Disburse the aforementioned RPTA contribution to EVAR.
b. Review copies of all reports and documents sent to the RPTA by
EVAR related to funded project.
3 EVAR'S OBLIGATIONS:
EVAR agrees to do all of the following:
a. Hold harmless the City of Apache Junction and its agents for any
acts or omissions by City, its elected officials, appointees, and employees.
b. Provide to the City of Apache Junction a copy of all reports and
documents sent to the RPTA related to funded project no later than 30 days after
their submission to RPTA.
4. Purpose. The purpose of this Agreement is to set forth the rights
and responsibilities of the Parties with respect to the acceptance and
distribution of the contribution to EVAR.
5. Funding Schedule. RPTA shall deliver a one-time payment of
$865.00 to the City for disbursement to EVAR for the provision of transportation
services at the Apache Junction Active Adult Center ("Center"). The purpose of
the contribution is to provide City residents with transportation to the Center,
Center Programs, local medical appointments, and local shopping hubs.
6. Term. The Term of this Agreement is one calendar year from the
execution date.
2
7. Indemnification and Hold Harmless. EVAR shall indemnify, defend
and hold harmless the City, its Mayor and City Council, appointees, employees
and agents from and against any and all suits, actions, legal or administrative
proceedings, claims, demands, liens, losses, fines or penalties, damages,
liability, interest, fees for attorneys, consultants and accountants or costs and
expenses of any kind and nature, resulting from or arising out of the negligence _
or willful misconduct of City, its Mayor and City Council, appointees, employees
and agents in performing the duties set forth in this Agreement.
8. Transactional Conflicts of Interest. The Parties acknowledge that
this Agreement is subject to cancellation pursuant to the provisions of A.R.S. §
38-511.
9. Waiver. No waiver, whether written or tacit, of any remedy or
provision of this Agreement shall be deemed to constitute a waiver of any other
provision hereof or a permanent waiver of the provision concerned, unless
otherwise stated in writing by the Party to be bound thereby.
10. Severability. City and RPTA each believe that the execution,
delivery and performance of this Agreement are in compliance with all
applicable laws. However, in the unlikely event that any provision of this
Agreement is declared void or unenforceable (or is construed as requiring City
to do any act in violation of any applicable laws, including any constitutional
provision, law, regulation, or City Code), such provision shall be deemed
severed from this Agreement and this Agreement shall otherwise remain in full
force and effect, provided that this Agreement shall retroactively be deemed
reformed to the extent reasonably possible in such a manner so that the
reformed agreement (and any related agreements effective as of the same date)
provide essentially the same rights and benefits (economic and otherwise) to the
Parties as if such severance and reformation were not required. Unless
prohibited by applicable laws, the Parties further shall perform all acts and
execute, acknowledge and/or deliver all amendments, instruments and consents
necessary to accomplish and to give effect to the purposes of this Agreement,
as reformed.
11. No Third Party Beneficiary Rights. The Parties agree that no third
party rights attach to this agreement.
12. Applicable Law and Venue: The terms and conditions of this
Agreement shall be governed by and interpreted in accordance with the laws of
the State of Arizona. Any action at law or in equity brought by either party for
the purpose of enforcing a right or rights provided for in this Agreement, shall
be tried in a court of competent jurisdiction in Pinal County, State of Arizona.
The Parties hereby waive all provisions of law providing for a change of venue in
such proceeding to any other county. In the event either party shall bring suit to
3
enforce any term of this Agreement or to recover any damages for and on
account of the breach of any term or condition in this Agreement, it is mutually
agreed that the prevailing party in such action shall recover all costs including:
all litigation and appeal expenses, collection expenses, reasonable attorneys'
fees, necessary witness fees and court costs to be determined by the court in
such action.
13. Indemnification: To the fullest extent permitted by law, Consultant
shall defend, indemnify and hold harmless City, its elected and appointed
officers, officials, agents, and employees from and against any and all liability
including but not limited to demands, claims, actions, fees, costs and expenses,
including attorney and expert witness fees, arising from or connected with or
alleged to have arisen from or connected with, relating to, arising out of, or
alleged to have resulted from the acts, errors, mistakes, omissions, work or
services of Consultant, its agents, employees, or any tier of Consultant's
subcontractors in the performance of this Agreement. Consultant's duty to
defend, hold harmless and indemnify City, its Special Districts, elected and
appointed officers, officials, agents, and employees shall arise in connection
with any tortious claim, damage, loss or expense that is attributable to bodily
injury, sickness, disease, death, or injury to, impairment, or destruction of
property including loss of use resulting therefrom, caused by an Consultant's
acts, errors, mistakes, omissions, work or services in the performance of this
Agreement including any employee of Consultant, any tier of Consultant's
subcontractor or any other person for whose acts, errors, mistakes, omissions,
work or services Consultant may be legally liable.
14 Notices: Except as otherwise required by law, any notice required
or permitted under this Agreement shall be in writing and shall be given by
personal delivery, or by deposit in the United States mail, certified or registered,
return receipt requested, postage prepaid, addressed to the Parties at their
respective addresses set forth below, or at such other address as a Party may
designate in writing pursuant to the terms of this Section, or by telecopy or
telefacsimile machine, or by any nationally recognized express or overnight
delivery service (e.g. Federal Express or UPS), delivery charges prepaid:
If to City: City of Apache Junction
Attn: City Manager
300 E. Superstition Blvd.
Apache Junction, Arizona 85119-2899
Telephone: (480) 474-5066
Facsimile: (480) 474-5110
If to EVAR. East Valley Adult Resources
Attn. Executive Director
45 West University
Suite A - Mesa, Arizona 85201
4
Telephone: (480) 964-9014
Facsimile: (480)898-7306
IN WITNESS WHEREOF, the Parties have executed this Agreement as of
the date first set forth above.
EAST VALLEY ADULT RESOURCES, an Arizona _
nonprofit organization
By. Dan Taylor
Its: President and CEO
CITY OF APACHE JUNCTION, ARIZONA, an
Arizona municipal corporation
By John S Insalaco
Its: Mayor
ATTEST:
By-
Kathy Connelly, City Clerk
APPROVE AS TO FORM:
By:
Richard J. Stern, City Attorney
5
City of Apache Junction, Arizona 300E Superstition
Boulevard
Agenda Item Cover Sheet Apache Junction,AZ 85119
Agenda Item No 4
File ID: 14-628
Sponsor- Heather Patel Agenda Date. 1/5/2015
Index. Community Development In Control:City Council Work Session
Presentation and discussion on Resolution No. 15-02, committing local funds as leverage for a
Fiscal Year 2014 State Special Project application Presentation and discussion
Attachments.
r
City of Apache Junction,Arizona Page 1 Printed on 1212912014
40 City of Apache Junction
Development Services Department
DATE: December 24,2014
TO: The Honorable Mayor and City Council
THROUGH: George Hoffman,City Manager
Larry Kirch,Development Services Director
Roger Hacker,Revenue Resources Manager
FROM: Heather Patel,Grants Coordinator
SUBJECT: Resolution No 15-02, committing local funds as leverage for a Fiscal
Year 2014 State Special Project application.
REQUEST
Presentation and discussion on Resolution No 15-02,committing local funds as leverage for a
Fiscal Year 2014 ("FYI 4")State Special Project("SSP")application.
BACKGROUND
The City of Apache Junction is submitting an application for FYI SSP funds in which the city
may request up to $300,000 to be used over a two year period of time. These funds are a
statewide competitive grant. The city may retain up to 18%of these funds for administrative
costs The application due date is February 19,2015
In conjunction with the Fiscal Year 2014 Community Development Block Grant("CDBG")
application, city staff conducted the required public participation process and held public
meetings on October 1, 2013 and November 19,2013. The city council approved under
Resolution No. 13-36,the submittal of a grant application for the FYI SSP program for phase
two of improvements to the Pueblo del Sol neighborhood
DISCUSSION
As part of the application requirements for submission of an SSP application, a resolution is
required if local funds are committed to the project Under the SSP program,leverage funding is
ranked and rated higher when applications are being reviewed The resolution binds the city to
leverage funding if the submitted applications as identified in Resolution No. 13-36 are awarded
Should the application(s)be denied, the city is not liable for these funds
The following budget is proposed-
Project administration=$30,000(grant)
Planning& Zoning—Building& Safety—Revenue Development
300 E Superstition Boulevard - Apache Junction,AZ 85119 - Ph (480)474-5083 - Fax(480)982-7010
,.. r.
Project construction= $270,000(grant)
Project construction= $30,000 (leverage)
Barring any objection, Resolution No 15-02 will be presented to city council under consent
agenda during the January 20, 2015 regularly scheduled council meeting.
RECOMMENDATION
�.. Staff respectfully recommends the council review and discuss Resolution No 15-02, committing
local funds as leverage.
ACTION REOUIRED
Review and discussion of Resolution No. 15-02, committing local funds as leverage
Attachment One Resolution No. 15-02
.m.
Planning & Zoning—Building& Safety—Revenue Development
300 E Superstition Boulevard • Apache Junction,AZ 85119 • Ph (480)474-5083 • Fax(480)982-7010
AM,, .�
RESOLUTION NO. 15-02
A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY
OF APACHE JUNCTION, ARIZONA, COMMITTING LOCAL FUNDS AS
LEVERAGE FOR FY 2014 STATE SPECIAL PROJECTS ("SSP")
APPLICATION (S) . r
WHEREAS, the City of Apache Junction has adopted
Resolution No 13-36 which authorizes submission of an
application (s) to the State of Arizona Department of Housing
("ADOH") for SSP Funding; and
WHEREAS, that application (s) indicates that $30, 000
will be committed by the City of Apache Junction as leveraged
funds, in the form of cash or resources to be used to
complete the project; and
WHEREAS, the CDBG Program requires that all local
leveraged funds/resources be committed in the form of a
resolution by the governing body, and that such a commitment
contain an opinion by the applicant ' s legal counsel that the
leveraged funds represent a binding commitment, legally
enforceable under State law
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AS
FOLLOWS
1) The mayor and city council hereby commit $30, 000 in funds
and resources to the FY13 SSP Program, to be used for
project costs, contingent upon the receipt of the grant
assistance.
2) That the mayor and city council of the City of Apache
Junction hereby find that this commitment is legally
binding based on the legal opinion of the city attorney,
and that such funds will be available for an audit at the
termination of the grant, if so required by ADOH.
RESOLUTION NO. 15-02
PAGE 1 OF 2
/01► r'`
PASSED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE
CITY OF APACHE JUNCTION THIS DAY OF 2015 .
SIGNED AND ATTESTED TO THIS DAY OF 2015
... JOHN S INSALACO
Mayor
ATTEST
KATHLEEN CONNELLY
City Clerk
APPROVED AS TO FORM.
RICHARD J. STERN
City Attorney
100W
RESOLUTION NO 15-02
PAGE 2 OF 2
I.M.
City of Apache Junction, Arizona 300 E Superstition
Boulevard
Apache Junction,AZ 85119
Agenda Item Cover Sheet
Agenda Item No.5.
File ID: 14-629
Sponsor Heather Patel Agenda Date: 1/5/2015
Index.Community Development In Control- City Council Work Session
Presentation and discussion on proposed Resolution Nos 15-03(Authority to submit), 15-04
(Commitment of local funds), and 15-05 (Adoption of housing rehabilitation guidelines)
regarding the submission of a Fiscal Year 2014-15 State Housing Fund grant application
Presentation and discussion
Attachments.
City of Apache Junction,Arizona Page 1 Printed on 1212912014
.mok .�
RESOLUTION No. 15-03
A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF
APACHE JUNCTION, ARIZONA, AUTHORIZING THE SUBMISSION OF AN
APPLICATION (S) FOR STATE HOUSING FUNDS, WHICH MAY INCLUDE
FEDERAL FUNDING THROUGH THE HOME INVESTMENT PARTNERSHIP
PROGRAM OR STATE HOUSING FUNDS, CERTIFYING THAT SAID
APPLICATION (S) MEET THE COMMUNITY' S HOUSING AND COMMUNITY
DEVELOPMENT NEEDS AND THE REQUIREMENTS OF THE STATE HOUSING
PROGRAMS, AND AUTHORIZING ACTIONS NECESSARY TO IMPLEMENT
AND COMPLETE THE ACTIVITIES OUTLINED IN SAID APPLICATION
(S)
WHEREAS, the City of Apache Junction is desirous of
continuing affordable housing development activities, and
WHEREAS, the State of Arizona is administering the State
Housing Fund Program; and
WHEREAS, the State Housing Fund requires that State Housing
Funds benefit low income households; and
WHEREAS, the activity in the application addresses the
community' s low-income population housing needs; and
WHEREAS, a recipient of State Housing Funds is required to
comply with the program guidelines, State and Federal Statutes
and regulations.
NOW, THEREFORE, BE IT RESOLVED THAT BY THE MAYOR AND CITY
COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AS FOLLOWS•
1) The Mayor and City Council of the City of Apache Junction
authorize applications to be made to the State of Arizona
for funding from the State Housing Fund,
2) Mayor John S . Insalaco is authorized to sign applications
and contracts or grant documents for receipt and use of
these funds;
3) Mayor John S . Insalaco is authorized to take all actions
necessary to implement and complete the activities
submitted in said applications; and
RESOLUTION NO. 15-03
PAGE 1 OF 2
�.
4) The Mayor and City Council of the City of Apache Junction
will comply with all State Housing Fund Program Guidelines,
State and Federal Statutes and regulations applicable to
the State Housing Fund Program (HOME program and/or State
Housing Trust Fund) and the certifications contained in the
(these) application (s)
.MI. PASSED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF
APACHE JUNCTION THIS DAY OF 2015.
SIGNED AND ATTESTED TO THIS DAY OF 2015 .
JOHN INSALACO
Mayor
ATTEST:
KATHLEEN CONNELLY
City Clerk
APPROVED AS TO FORM
RICHARD J. STERN
City Attorney
r.
RESOLUTION NO. 15-03
PAGE 2 OF 2
City of Apache Junction
Development Services Department
DATE: December 24,2014
TO: The Honorable Mayor and City Council
THROUGH: George Hoffman,City Manager
Larry Kirch,Development Services Director
Roger Hacker,Revenue Resources Manager
FROM Heather Patel,Grants Coordinator
SUBJECT: Resolution Nos 15-03, 15-04, and 15-05 regarding the submission of a
Fiscal Year 2014-15 State Housing Fund grant application
REQUEST
Presentation and discussion on proposed Resolution Nos. 15-03, 15-04, and 15-05 regarding the
submission of a Fiscal Year 2014-15 State Housing Fund grant application.
1) Resolution No 15-03 (Authority to Submit),
2)Resolution No 15-04(Commitment of Local Funds); and
2)Resolution No 15-05 (Adoption of Housing Rehabilitation Guidelines).
The resolutions are mandatory components of the city's proposed Fiscal Year 2014-15 State
Housing Fund("SHF") grant application.
BACKGROUND eN
Since 1985, the City of Apache Junction has utilized a variety of funding sources to offer a
Housing Rehabilitation Program("HRP")for local home owners. The city began using SHF
Rinds in 1996. Since 1985,the city has invested nearly $4 million in grant funds to address
housing rehabilitation needs for over 228 owner occupied homeowners
DISCUSSION
The Arizona Department of Housing("ADOH")has announced the next cycle of funding for
owner occupied housing rehabilitation programs Completed applications are due on March 20,
2015. If approved by council,Apache Junction will request$275,000 in owner occupied
housing rehabilitation funds to complete the rehabilitation of seven owner- occupied residential
properties
As part of the city's application,resolutions are mandated by ADOH. The attached resolutions
meet the requirements of the SHF guidelines The required resolutions are
Planning& Zoning—Building&Safety—Revenue Development
300 E Superstition Boulevard •Apache Junction,AZ 85119 - Ph (480)474-5083 •Fax(480)982-7010
,.. i•.
1) authorizing the submission of an application,
2) committing local funds as leverage to the project; and
3) adopting the community's Housing Rehabilitation Guidelines
Resolution No 15-03 authorizes the submission of a grant application.
Resolution No. 15-04 reflects leverage funds allocated to the Fiscal Year 2014-15 SHF
application. The state requires leverage funds in the form of cash in order to rank and rate each
100%, application for funding The city will provide$28,000 as leverage to the project for payment of
construction services and other related costs The funding set aside for leverage will be allocated
within the FYI 5-16 budget under non-departmental grant leveraging
Resolution No. 15-05 reflects changes to the city's Housing Rehabilitation Guidelines These
changes have been updated to reflect changes required by ADOH and how the city's program
has developed over the years Below is a brief description of those proposed changes, excluding
minor grammatical and clarification changes The changes may be found highlighted within the
guidelines•
1) The city is not permitted to use applicant's assets to determine their eligibility for the
program.
2) Americans with Disabilities Act standards for construction have been added as
required by the state
3) It is no longer permitted for site built homes to replace manufactured homes
4) The city was required to include a clause regarding the relocation of homeowners
should the need arise
5) It is not required HVAC contractors be BPI certified
6) A post audit is completed on each home as an additional measure to ensure proper
construction was completed on the home
Barring any objection, Resolution Nos 15-03, 15-04, and 15-05 will be placed on the January
20, 2015 council meeting agenda under consent
... RECOMMENDATION
Staff respectfully recommends the city council review and discuss the proposed Resolution Nos.
15-03, 15-04, and 15-05.
ACTIONS REQUIRED
Review and discussion
Attachment 1 Resolution No 15-03
Attachment 2. Resolution No 15-04
Attachment 3 Resolution No. 15-05 including final revised HRGs
Attachment 4• Housing Rehabilitation Guidelines including proposed revisions
Planning& Zoning— Building & Safety—Revenue Development
300 E Superstition Boulevard • Apache Junction,AZ 85119 • Ph (480)474-5083 • Fax (480)982-7010
.. ..M*.
RESOLUTION NO 15-04
A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY
OF APACHE JUNCTION, ARIZONA COMMITTING LOCAL FUNDS AS
LEVERAGE FOR A FY2014-15 STATE HOUSING FUND
APPLICATION.
WHEREAS, the City of Apache Junction has adopted
Resolution No. 15-03 which authorizes submission of an
application (s) to the State of Arizona, Department of Housing
("ADOH") for State Housing Fund ("SHF") funds for FY2014-15;
and
WHEREAS, that application indicate that $28, 000 will be
committed by the City of Apache Junction as leveraged funds,
in the form of cash or resources to be combine with State
funds to complete the program; and
WHEREAS, the SHF Program requires that all local
leveraged funds/resources be committed in the form of a
resolution by the governing body, and that such a commitment
contain an opinion by the applicant ' s legal counsel that the
leveraged funds represent a binding commitment, legally
enforceable under State laws
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AS
FOLLOWS
1) The Mayor and City Council hereby commit $28, 000 in funds
and resources to the SHF Program, to be used for pro]ect
costs, contingent upon the receipt of the FY2014-15 SHF
assistance.
2) That the Mayor and City Council of the City of Apache
Junction hereby find that this commitment is legally
binding based on the legal opinion of the City attorney,
and that such funds will be available for an audit at the
termination of the grant, if so required by ADOH.
RESOLUTION NO 15-04
PAGE 1 OF 2
,.► ^
PASSED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE
CITY OF APACHE JUNCTION, ARIZONA, THIS DAY OF
2015
SIGNED AND ATTESTED TO THIS DAY OF
i.. 2015
JOHN S. INSALACO
Mayor
ATTEST:
KATHLEEN CONNELLY
City Clerk
APPROVED AS TO FORM
RICHARD J. STERN
City Attorney
i•.
RESOLUTION NO 15-04
PAGE 2 OF 2
.oml.. .40W.,
RESOLUTION NO 15-05
A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE
CITY OF APACHE JUNCTION, ARIZONA, AUTHORIZING THE
ADOPTION OF OWNER OCCUPIED HOUSING REHABILITATION
GUIDELINES DATED FEBRUARY 1, 1994, AS AMENDED, IN
RELATION TO A HOUSING REHABILITATION ACTIVITY
WHEREAS, the City of Apache Junction, Arizona, is
desirous of continuing an owner-occupied housing
rehabilitation program; and
WHEREAS, this program is anticipated to be funded
with funds provided by the State of Arizona Department of
Housing ("ADOH") ; and
WHEREAS, ADOH requires that every local government
requesting funds for housing rehabilitation adopt
specific guidelines for such a program, and
WHEREAS, the City of Apache Junction has developed
such owner-occupied Housing Rehabilitation Guidelines
("HRGs") dated February 1994, as amended, which have been
previously approved by ADOH.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AS
FOLLOWS:
1) The City Council of the City of Apache Junction,
Arizona, hereby adopts such owner-occupied HRGs,
dated February 1994 , as amended in Attachment A,
Aoft-
which shall be used to implement its housing
rehabilitation program, and
2) The City of Apache Junction, Arizona, shall utilize
such owner-occupied HRGs, without revisions, except
those authorized by the Mayor. Such revisions shall
be submitted to ADOH by the City 10 working days
before such amended guidelines are effectuated.
RESOLUTION NO. 15-05
PAGE 1 OF 2
..., .•.
PASSED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE
CITY OF APACHE JUNCTION, ARIZONA, THIS DAY OF
2015 .
SIGNED AND ATTESTED TO THIS DAY OF ,
2015.
Aubk
JOHN S . INSALACO
Mayor
ATTEST•
KATHLEEN CONNELLY
City Clerk
APPROVED AS TO FORM:
RICHARD J. STERN
City Attorney
.-.
RESOLUTION NO 15-05
PAGE 2 OF 2
Q`` PQ^CHE✓�y�
v
"�RlZpt1
CITY OF APACHE JUNCTION, ARIZONA
HOUSING REHABILITATION PROGRAM GUIDELINES
As Adopted by the City Council on February 1, 1994
Modified by the City Council on January 17, 1995
Addendum by the City Council on March 21, 1995
Modified by the City Council on June 20, 1995
Modified by the City Council on March 7, 2000
Modified by the City Council on May 15, 2001
Modified by the City Council on February 5, 2002
Modified by the City Council on January 16, 2007
Modified by the City Council on June 5, 2007
Modified by the City Council on November 18, 2008
Modified by the City Council on December 15, 2009
Modified by the City Council on December 6, 2011
Modified by the City Council on January 15, 2013
Modified by the City Council on April 1, 2014
Modified by City Council on January 20, 2015
The city council of the City of Apache Junction adopts the following Housing
Rehabilitation Guidelines to assist the city in administering the city's Housing
Rehabilitation Program This program is intended to provide safe and decent housing
to City of Apache Junction residents by offering funding options to assist homeowners
with the rehabilitation or modification of their home
PROGRAM PURPOSE (GOALS)
1. Eliminate health and safety hazards in homes,
2 Benefit very low-, low- and moderate-income residents, and
3. Improve neighborhoods and encourage stability.
City of Apache lurictior Housing Rehabr!d<:uo,n Program Guidelines, page 1 of 30
TABLE OF CONTENTS
Program Purpose and Goals 1
Program Design 3
Target Area 3
Eligibility Requirements 3
Property Standards 6
Allowable Work Items 6
Non-allowable Work Items 8
Rehabilitation Assistance Plans 8
Emergency Housing Repair 8
Housing Accessibility 8
Housing Rehabilitation 9
Replacement 9
Permit Fee Fund 9
Deferred Payment/Forgivable Loans 11
Exceptions to the Maximum Allowed 11
Recapture Period 11
Loan Servicing Policy/Subordination 12
Revolving Loan Fund/Program Income 12
Third Party Income Verification 12
Method for Determining After Rehab Value 13
Homeowner Information 14
Contractor Information 17
Housing Maintenance and Homeowner Education 23
Energy Efficiency Guidelines 23
Lead Based Paint Requirements 23
Conflict of Interest 24
Complaint and Grievance Procedures 25
Marketing 27
Staffing and Administrative Review 28
Non-Discrimination 28
Assistance to Applicants 28
Fair Labor Standards 29
Applicable Documents 29
Changes to Program Guidelines 29
Forms 29
Cd),of Apache Juociion Ho;;sing Rehabi;dalion Program Guidelines; j age 2 of 30
,.^
PROGRAM DESIGN
The focus of the Housing Rehabilitation Program (hereinafter "HRP") is to increase
the life and improve the livability of homes owned by very low-, low- and moderate-
income families by correcting code violations, solving health and safety issues,
addressing accumulated deferred home maintenance projects, and providing
sustainability by weatherizing homes
Funds for the program are primarily provided through the- 1) Community
Development Block Grant Program ("CDBG") and 2) State Housing Fund ("SHF")
including HOME and State Housing Trust Funds as administered by the Arizona
Department of Housing ("ADOH").
Owner-occupied housing rehabilitation ("OOHR") assistance to homeowners in the
SHF funded portion of the city's HRP may be in the form of deferred
payment/forgivable loans
OOHR assistance to homeowners in the CDBG funded portion of the city's HRP may
be in the form of grants or deferred payment/forgivable loans
Unless specifically stated to the contrary, comments contained in these guidelines
are applicable to both the CDBG and SHF funded portions of the city's HRP.
TARGET AREA
The program will be open to all full-time permanent residents who live within the
incorporated boundaries of the City of Apache Junction, excluding those who live in
designated ineligible areas or structures as outlined in the eligibility requirements
below CDBG funds may only be used in the Pinal County portion of the city.
ELIGIBILITY REQUIREMENTS Oak
To be eligible, the applicant and the property to be rehabilitated must meet the
following criteria:
♦ Located within the incorporated boundaries of the City of Apache Junction,
excluding the Mancopa County area
♦ Feasible for rehabilitation under the time and monetary constraints of the
program
♦ Owned and occupied by a full-time permanent resident of Apache Junction
♦ Applicants must have a verifiable income that falls below 80% of the area
median income as indicated by The US Department of Housing and Urban
Development and the State of Arizona —State Housing Fund Program income
City of Apache Junction Housing Rehab station Progiam Guidetunes, page 3 of 30
..•.
limits for very low-, low- and moderate-income families Income guidelines are
updated annually. Income verification is valid for a period of six (6) months
Upon expiration of income verification information, applicants must complete
and submit new income verification documentation. Income must be
anticipated and verifiable for the next 12 months. Required documentation of
income can be found under Third Party Income Verification within this
document
♦ Provide proof of homeowner's insurance
♦ For the purposes of eligibility, self-help or "sweat" equity are not allowable
forms of equity.
♦ The current owner must have occupied the structure for at least one (1) year
prior to program entry
♦ Preference will be given to households applying for funding that meet one of
the following criteria 1)be elderly(62 years of age or older), 2)have a disability
(a legally recognized physical/mental/emotional condition that limits the
performance of daily living skills); or 3) have minor child (ren)age 17 and under
related to head of household residing in the residence.
♦ A.R.S. 1-501 and 1-502 requires that all homeowners who receive services
under the program shall provide proof of lawful presence in the United States
including a sworn affidavit that the required documentation is true under
penalty of perjury.
♦ Owner is to complete any recent construction project underway prior to the
city's approval of rehabilitation assistance
♦ Manufactured and mobile homes are deemed eligible contingent upon. 1)
applicant (s) having owned and occupied both property and dwelling for one
(1) year prior to program entry; and 2) the home being permanently attached
to a foundation, either as a pre-existing condition or as a work element of the
HRP.
♦ Properties in non-conforming zoning, properties located within 1,000 feet of
an explosive/flammable operation, properties with open, unresolved building
or code compliance cases and homeowners unwilling to follow the City of
Apache Junction Program Guidelines, are not generally eligible for
rehabilitation under this program
♦ Homes of historical value may only be eligible upon favorable review by the
State Historic Preservation Office
♦ Manufactured homes that were built before June 1976 are not eligible to
Cify of Apache,lurcbon Housing Rel,abaifation Program Guidelines. page 4 of30
.%,
receive housing rehabilitation funding, however they are eligible for emergency
and housing accessibility assistance
♦ The rehabilitation of dwellings located in the 100-year floodplain are not
eligible for participation in the rehabilitation program.
♦ Properties that are classified "non-conforming" are not generally eligible for
rehabilitation However, if the proposed rehabilitation is non-structural and
there are no properties waiting to be rehabilitated, nonconforming properties
that meet all other eligibility criteria may be considered.
♦ Properties with an open building or code case are generally not eligible for
rehabilitation However if the case is relating to a correctable building condition
HRP funds can correct under the requirements of the program, then the unit
will be deemed eligible.
♦ Properties rehabilitated through this program must be free of any
encumbrances such as liens or judgments. Properties may be encumbered
by a mortgage in first position so long as a financial institution or other such
mortgage company holds that mortgage; however, there must be sufficient
equity remaining to justify placing a lien for the rehabilitation deferred
payment loan in second position. Properties encumbered by
mortgages/loans held by individuals or partnerships are not eligible unless a
warranty deed is recorded and a lien may be placed on the
property. Mortgage payments and insurance premiums must all be current
Click here to view
oncorne and
the income limits for
program eligibility.
PROPERTY STANDARDS
The property standards that must be achieved as a result of assisted rehabilitation
are established by the most recent state and local building codes, the Federal
City of Apache Junicoon Housing Rehabilitation Program Guidefines. pone 5 of 30
Housing Quality Standards, Arizona Department of Housing's Housing Rehabilitation
Standards, the Owner Occupied Housing Rehabilitation Weatherization Standards,
the City of Apache Junction Housing Rehabilitation Program Construction Guidelines,
the Uniform Federal Accessibility Standards and the Americans with Disabilities Act,
as applicable and needed by the homeowner.
The city's Energy Efficiency requirements incorporate the following standards
BPI/BA Standards, IECC 2009, ASHRAE 62 2-2010, Energy Star, and Standardized
Work Specification
ALLOWABLE WORK ITEMS
HOME guidelines require an entire dwelling be brought up to local code A preliminary
property inspection is completed to assist with ensuring homes meet Housing Quality
Standards ("HQS") and are safe, sanitary and decent.
Priorities have been established for determining the work that will be completed in
the eligible homes
1. Code Violations
2. Issues of Health and Safety
3. Weatherization Standards/ Energy Efficiency
4. Improvements of a Cosmetic Nature
The following must also be taken into consideration when determining the priority of
items for inclusion in the work-write up (Scope of Work):
1 The age and the physical condition of the building,
2 The goal of the program (building revitalization or direct benefit),
3 Funds available for rehabilitation of each unit, and
4 Value of unit after rehabilitation.
The following levels are utilized to determine priorities for the HRP-
• Level 1 Initial inspection reports must include items in Level 1.
• Level 2 Items included on Level 2 are also considered critical but not as
critical as those items in Level 1 Other items are considered less critical and
should always be inspected but may not be rehabilitated.
• Level 3: The items on List 3 should be reviewed, and where feasible,
corrected These items must also be included whenever substantial
rehabilitation is taking place.
C,fy cf Apache,k,nciion Housing Rehabirifafion Program Guidelu,es page 6 of 30
Items from all levels must be included in the preliminary inspection report for
all construction projects and those where the cost of rehabilitation exceeds
75% of the value of the property
Level 1 - Items that must be included in the inspection report and must be repaired
or replaced:
1 Lead Based Paint Assessment (only on properties built prior to 1978)
2 Hazardous Materials
3 Health and Safety Hazards
4 Stable and Weather Tight Roof
5. Electrical System — the unit must have a minimum 100-amp electrical
service, with no unsafe conditions
6 Plumbing (including hot water) — Must be in good working order and be safe
and sanitary
7. Heating and Cooling Systems — must be adequate and safe with a
reasonable (three year) useful life
8. Egress in accordance with local health and safety codes
9. Trip Hazard (HQS Standard)
Level 2 - Items that must be included in the inspection report and should be
repaired or replaced:
1 Structural soundness and integrity (including rotted or deteriorating materials
and those impacted by termites and/or other wood-boring insects).
2 Siting of the structure and its relationship to water penetration that may
impact structural integrity.
3. Appropriate kitchen facilities including a sink and means of cooling and
heating food to healthful standards
4 If the structure has an attached garage, appropriately-rated fire wall between
garage and living areas
5 Weatherization items
The above mentioned items are first priority items that shall be included in every
inspection report. These items shall also be included in the Work Write-Ups (funds
permitting) and shall receive priority in work to be completed as part of the
rehabilitation project. Repair or replacement may take place based on the amount of
available resources
Level 3 - Items that must be included in the inspection report and may be repaired
or replaced:
1. Debris that may be a fire hazard
2. All existing exposed surfaces painted or sealed and not presenting a health
or safety hazard.
3 Cabinetry
Cft y of Apacl. Juncffof, Housing Rehablitabon Program vuidelfnes pace 7 of 30
4 Finished flooring
5. Repair and replacement of doors and windows not presenting a health or
safety hazard.
The above mentioned items shall be included in every inspection report and may be
included in the Work Write-Up (funds permitting) These items generally result from
deferred maintenance and are considered general improvements
The City wishes to encourage contractors to buy locally whenever possible.
NON ALLOWABLE WORK ITEMS
None of the program funds shall be used for temporary/long term relocation of
applicants during periods of home rehabilitation/repair. No funds shall be used to
reimburse the homeowner for work completed
REHABILITATION ASSISTANCE PLANS
I EMERGENCY/MINOR HOUSING REPAIR PLAN
A grant plan that assists homeowners in the elimination of an imminent threat to life,
safety or health; the necessary repairs may include, but shall not be limited to roofs,
floor repairs, window/door replacements, and wall and ceiling repairs The minimum
assistance is $1,000 and the maximum assistance is$15,000 per recipient. The grant
may address no more than two (2) emergency conditions, unless approved by the
Development Services Director, or his/her designee, due to some extenuating
circumstances A structure may be eligible for an Emergency Grant even though it
may not meet structural integrity requirements. After a recipient has received services
through the Emergency Housing Repair program they may not be eligible to receive
additional services until five years after the completion of the project unless the
emergency services enable the homeowner to remain in their home until the home
can be rehabilitated under the city's Housing Rehabilitation Plan or replaced under
the city's Replacement Plan Additionally, no single owner of a home may receive
more than two emergency assistance grants.
2. HOUSING ACCESSIBLITY PLAN
A grant or deferred payment/forgivable loan plan that assists homeowners to make
their residence physically accessible. Assistance can be either structural changes or
purchase of durable medical equipment (if it becomes a permanent part of structure)
and may include ramps, grab bars, handrails, raised toilets, lowered light switches,
automatic door openers, visual alarms, transfer shower benches, and hand held
showers Grants are limited to $2,500 per recipient. This program is offered through
the city's partnership with Community Action Human Resources Agency (CAHRA) or
may be a component of another rehabilitation plan
City of Apache l,.richoo Housing Rehabiniallon Prcgrani Guidelines, 8 of 30
3. HOUSING REHABILITATION PLAN
A grant or deferred payment/forgivable loan plan that assists homeowners to address
safe, sanitary, and decent housing rehabilitation issues. Rehabilitation projects may
either be major or minor Grants and deferred payment/forgivable loans are limited to
a minimum of$1,000 and a maximum as required by the grant from which the funds
will be expended, this amount may change each funding year. Mobile/manufactured
homes and conventional, site-built homes have different maximum investments.
HOME funds cannot be utilized in the form of a grant In the HOME Program,
weatherization, emergency repairs, or accessibility projects may be undertaken
only if the property is brought up to the State's rehabilitation standards upon
completion When a recipient receives a deferred payment/forgivable loan, no further
investment of CDBG funds can be made on the home until after the recapture period
has expired. No additional HOME funds may be invested However, should the
recipient receive any housing rehabilitation services in the form of a grant, they may
not be eligible to receive additional services until five years after the completion of
the project
4. REPLACEMENT PLAN
A grant or deferred payment/forgivable loan plan that assists homeowners with the
replacement of unsafe, hazardous living conditions by providing a new
manufactured or site-built home. This plan provides a maximum investment as
stipulated within each grant from which the funds will be expended. This amount
may change each funding year and is intended for the construction of a new home
or for the replacement of a manufactured home. Manufactured homes may not be
replaced with site built homes HOME funds cannot be utilized in the form of a
grant When a recipient receives a deferred payment/forgivable loan, no further
investment of CDBG funds can be made on the home until after the recapture
period has expired No additional HOME funds may be invested. The city will make
every effort to eliminate or reduce the need for relocation during construction
Homeowners may be encouraged to find temporary housing with family or friends.
In the event that no options exist, the city may use grant funds to pay for temporary
accommodations.
5. PERMIT FEE FUND
In 2003, the City of Apache Junction created a revenue fund (004-04420-422-225)
in order to track and collect permit fees that have been paid for by contractors that
are participating in the City's Housing Rehabilitation Program The fees that were
collected were to be used to supplement and support the activities of the City's
Housing Rehabilitation Program. These fees are collected in accordance with the
City of Apache Junction City Code, Volume 1, Chapter 7, Article 4-4 Sections A
through I.
City of Apache JGnCIlor?.Housrnc Rehabrlriatron Program Godelrr-1Es. , age 9 of 30
All relevant fees shall be due payable by the contractor prior to the start of
construction on any City of Apache Junction housing rehabilitation project. These
fees will be tracked by the Housing Rehabilitation Program Coordinator ("HRPC")
and reported to the Finance Director for deposit into the appropriate revenue
account This account will be tracked to ensure accurate balance and expenditures.
Eligible expenses to be withdrawn from this account shall be minor repair items that
are eligible under the City of Apache Junction's Housing Rehabilitation Program and
the adopted Housing Rehabilitation Guidelines Recipients of these funds, however,
must be homeowners that are not eligible under the same guidelines or available
funding programs These repairs must be determined an emergency by the
Program Coordinator Further, the Coordinator must have found that there is no
other funding or community assistance can be located for the homeowner Eligible
homeowners must be either elderly (over the age of 62), disabled, or have children
under the age of 18 occupying the home and the total household income must not
exceed 80% of the area median income.
When an expense is determined to be eligible to be charged to this account, the
Coordinator will submit a check request along with an invoice for payment to the
finance department The maximum amount payable toward any project shall be
$1,000 unless otherwise approved by the Development Services Director
Replacement
Rehabilitation
ousing
ARe Replacement may be provided to w Eligible Homes yt""-
P Y D B Ellalble Homes
homeowners when the cost to 1)Single family homes,manufactured 1)Single family;
rehabikate their home exceeds the homes,condos,and townhomes,
maximum investment allowable 2)Post-1976 manufactured homes
2)Pre-1976 manufactured homes, affixed to a foundation,
Replacement homes will be site built 3)Manufactured homes affixed to a 3)Condos and town homes,
foundation, q Homes without embumbrances e.homes,where zoning allows for such 1 B
construction 4)Homes with encumbrances e.g reverse mortgage and liens,excluding
reverse mortgage and liens excluding a first mortgage.
first mortgage
Manufactured homes may be used as a
replacement in areas where zoning Eligible Items
does not allow for site bulk homes Eligible items 1)Complete rehabilitation of home,
1)Acessibility improvements, 2)Address all code,heakh and safety
A lien is placed on the home for the 2)Health and safety Improvements, items,
extent of the recapture period which is 3)Limited to two improvements per 3)Incorporate energy efficiency
based upon the total investment grant improvements;
amount
4)AccesslbllRy Reins
Assistance Provided
Grant not to exceed$15,000 Assistance Provided
Limit assistance to two times per home Deferred Payment Forgivable Loan
Single family home maximum
investment$60,000
Manufactured home maximum
investment$20,000
No additional assistance during
recapture period
A lien is placed on the home forthe
extent of the recapture period which is
based upon the total investment
amount
City of Apache Junction Housing Rehabuitation Program Guidelines page 10 of 30
..-k
DEFERRED PAYMENT/FORGIVABLE LOANS
All deferred payment forgivable loans are secured by a lien and promissory note. A
percentage of the total assistance provided on forgivable loans will be forgiven on
the anniversary date of the execution of the recording of the loan instruments
throughout the recapture period, provided that the dwelling unit continues to be
occupied by the original occupant or an income qualified immediate family member.
The unforgiven balance of the loan shall become due and payable upon the sale of
the property Properties encumbered by mortgages/loans held by individuals or
partnerships are not eligible unless a warranty deed is recorded and a lien may be
placed on the property. HOME funds cannot be used in the form of a grant
The HRPC will be responsible for recording the required paperwork as determined
by the loan The lien will be recorded at the Pinal County Assessor's Office and will
include applicable administrative costs and a contingency of 10% above the
Contractor's Bid The Deed of Trust will be placed on a tracking system by the HRPC
who will track the loan calculating the amount of dollars that will be forgiven as each
year passes until the loan has been completely forgiven as outlined in the HRGs The
HRPC will send a letter to the homeowner annually advising the homeowner of the
status of their loan, identifying the amount forgiven and the amount that remains on
the loan The city will be no lower than the first position on the lien of the home or
second if a financial institution held first position prior to the city recording the loan
documents. A letter to the homeowner shall provide a reminder that the city cannot
subordinate the loan
EXCEPTIONS TO THE MAXIMUM ALLOWED
The Maximum investment for each project is stipulated under each grant program
from which the funding is expended This maximum may change with each funding
year However under no circumstance may the maximum per unit investment exceed
that which is determined by the geographic area 221 (d) 3 per unit limits based on
the number of bedrooms nor can the after rehabilitation value exceed the allowable
amount set by HUD (see Method for Determining After Rehabilitation Value section
below).
RECAPTURE PERIOD •Investment of$1,000-
$15,000
When a recipient elects to receive assistance in
the form of a deferred or forgivable loan, a •Investment of$15,001
recapture period applies. The recaptured91 -$40,000
period is based on the amount of funds invested
in the assisted unit Recipients may elect to have *Investment of$40,001
a recapture period that is longer than the required -$75,000
period When a recipient receives a deferred
•Investment of$75,001
IR and over
IV
City cf Apache Junction Housing hehablIdation Program Guidelines, page 11 of 30
AIML
payment/forgivable loan, no further investment of CDBG funds can be made on the
home until after the recapture period has expired. No additional HOME funds may be
invested.
LOAN SERVICING POLICY/SUBORDINATION
After execution of the loan, subordination agreements with lending institutions will
not be honored since such practice is lending of city credit in violation of State
constitutional law Properties rehabilitated through this program must be free of any
encumbrances such as Dens or judgments. Properties may be encumbered by a
mortgage in first position so long as a financial institution or other such mortgage
company holds that mortgage, however, there must be sufficient equity remaining to
justify placing a lien for the rehabilitation deferred payment loan in second position.
Should a refinancing request be made by the homeowner after the rehabilitation work
has been completed and a lien has been placed on the structure and the request has
been made prior to the end of the recapture period, the lien shall become due and
payable upon refinancing to the city. Thus, should the refinance be cash out, the city
will require payment in full of the lien The city will be no lower than first position on
the lien of the home. As noted above, the city cannot subordinate the loan in any
manner
REVOLVING LOAN FUND/PROGRAM INCOME
The City of Apache Junction does not currently have a revolving loan fund Therefore
the City will track all loans In the event a house that has received services is sold
prior to the end of the recapture period, the city will enforce the repayment of the loan
in the amount that remains unforgiven These funds will then be immediately
circulated into the Housing Rehabilitation Program and will be utilized prior to the use
of any new grant funds. However when utilizing HOME funds, any recaptured or
repaid funds will be returned to the Arizona Department of Housing as retention of
HOME funds is not allowed by the Arizona Department of Housing.
THIRD PARTY INCOME VERIFICATION
Upon receipt of the application, the HRPC will verify eligibility based upon the
homeowners income. The definition of income is taken from 24 CFR Part 5 Gross
Income will be used to calculate income for all members of the household over the
age of 18. Income must be anticipated and verifiable for the next 12 months. Typical
required documents to verify income will include, but are not limited to
1. Bank Statements including checking and savings accounts,
2 Paycheck stubs including tips, commission and bonuses, and overtime,
3 Earned Interest and Assets This amount is calculated into the income if over
$5,000. Eligible assets include but are not limited to Value of Stock, Life
City cf Apache Junctior Housing Pehabihtuhon Program Gudehr,es, page 12 of 30
Insurance, 401 K, interest, CD's, Real Estate, Personal property not including
home;
4. Social Security,
5 Welfare Assistance;
6 Alimony and Child Support,
7 Minors Income specifically disability payments,
8 If self employed, must include the past three (3) years income tax returns for
net income;
9. Excluded items include earned income from minors (under age 18), full-time
student income (ages 18-23), disabled persons' income, and food stamps
Median Income Guidelines
HUD updates the Median Income Guidelines on an annual basis The most current
information can be found on the US Department of Housing and Urban
Development website
The city will utilize the HUD Income Calculator to determine income eligibility
https://www.onecpd.info/incomecalculator/
METHOD FOR DETERMINING AFTER REHABILITATION VALUE
Beginning August 23, 2013 HUD has established the HOME Maximum After-
Rehab Value Limits for owner occupied housing rehabilitation. These limits will
remain in effect and are updated as HUD issues newlimits.
The new HOME value limit for existing housing to be used for owner
occupied housing rehabilitation is 95 percent of the median purchase price for the
area based on Federal FHA single family mortgage program data and other
nation-wide data on the sales of existing housing.
To establish Project eligibility, after-rehabilitation value must be established
prior to any work being performed. The after- rehabilitation value may be
established by one or more of the following methods
1. Estimates of value Estimates of value by the subrecipient may be used.
Project files must contain the estimate of value and document the basis by
which the value estimates were derived. (For example, a Real Estate Broker's
price opinion with supporting comparable sales.) Websites such as quizzle com,
zillow com and trulia com may be used to determine an estimated value
2. Appraisals: Appraisals, whether prepared by a licensed fee appraiser or by a
staff appraiser of the city, may be used Project files must document the
appraised value and the appraisal approach used.
3. Tax assessments Tax assessments for a comparable property located in the
same neighborhood may be used to establish the after-rehabilitation value if
Cd,,,of Apache J�nclion Hoasing Rehabilitation Program Godehnes, page 13 of 30
the assessment is current and accurately reflects market value after
rehabilitation.
HOMEOWNER INFORMATION
Applications are available by mail, in the Development Services office, or obtained
from the city's website at www.aicity.net/rehab by the applicant. Eligible applicants
will be prioritized on a first come, first served basis, unless the nature of the project
constitutes an eminent threat to health or safety, as determined by the Building
Inspector.
STEP 1: Waiting List
Once an application is approved and the homeowner is determined to be eligible to
participate in the city's HRP, they will be placed on a waiting list Homeowner's will
be served based on two factors:
1 A First Come - First Serve Basis
2 Based upon the funding availability of the program with which they are
eligible The city has several housing programs. Based on their eligibility they
may not qualify for all programs
Applicants can remain on the waiting list for up to 18 months or more before
receiving assistance. The financial information provided with the application is valid
for 6 months Therefore homeowner's may be required to re-submit financial
information to re-certify they are eligible to participate in the program.
A typical timeline for services may be:
Application is submitted
Review of application (eligibility determination 2 months
Placed on waiting list up to 1 year
Schedule initial meeting to discuss the program 2 months
Schedule home inspection 2 months
Determine work write up 2 months
Procure contractor 4 months
Signed documents/contracts 2 months
Construction 3 months
Final inspection 1 month
STEP 2: Interview
When the time has come to receive the benefits of the program an appointment will
be scheduled to make a home visit to discuss the details of the program and sign an
agreement. All homeowners must be present.
Ctly of Apache Juncl,or Housirg PehabrMelion Program, Guidelines, s 14 of 30
There are two basic programs in which homeowner's may be eligible. It will be
determined which program would best suit their needs once an inspection of the
home is completed and a cost estimate is determined Following are the two
programs:
1 Emergency Rehabilitation: This program will address two emergency needs
within the home This program is provided in the form of a grant. Once a
homeowner receives this service, they may not be eligible for additional
assistance for five years
2 Housing Rehabilitation- This program will address all the necessary needs
within the home under the requirements of the program. Health and safety
issues, code compliance and weatherization will be addressed. This program
is provided in the form of a deferred payment loan which will place a lien on
the property. A deferred payment loan means that over a given period of
time, the loan will be forgiven so long as the homeowner remains in the
home as their only and primary residence. Once they receive this service,
they may not be eligible for additional assistance until the loan has been
forgiven This recapture period is dependent upon the amount of funds
invested into the home
STEP 3: Home Inspection
The city will complete an inspection on the home. This inspection will help to
determine what items will need to be completed on the home. Below is information
to help determine what items are eligible under the requirements of the program.
We would like to:
Eliminate unsafe and hazardous conditions, Improve living conditions and
extend the life of the home, Make the home accessible for family members
with special needs; Bring the home to minimum safe property standards and
local codes, Improve property values in the neighborhood, and Improve
energy efficiency
Areas we can provide help include: The program will NOT:
Electrical Accessibility Change of colors or styles
Plumbing Insulation Cover routine maintenance
Heating/Cooling Foundation Make the home look like new
Roofing Bath facilities
Walls Kitchen facilities
Painting Hot water
Windows/Doors Smoke alarms
If the home was built before 1978, a Lead Paint Inspection will be conducted by a
qualified contractor, as identified by the city.
City cf Apache lw,cbon Housing Fehabihtaiion Program, Guidelines, ,age 15 of 30
An Energy Audit will be conducted by a BPI certified contractor, as identified by the
city Information provided by from the audit will assist the HRPC will creating a
project scope.
STEP 4 Work Write-up and Bid Process
After the inspections are complete a work write-up and cost estimate are
determined to assist with the procurement of a contractor The homeowner must
approve the project scope prior to procuring a contractor. Priorities have been
established for determining the work that will be completed in the eligible homes.
1. Code Violations
2. Issues of Health and Safety
3. Weatherization Standards/ Energy Efficiency
4. Improvements of a Cosmetic Nature
The following must also be taken into consideration when determining the priority of
items for inclusion in the work-write up (Scope of Work)
1 The age and the physical condition of the building;
2 The goal of the program (building revitalization or direct benefit);
3 Funds available for rehabilitation of each unit; and
4 Value of unit after rehabilitation
It is required that all projects competitively procure a licensed contractor to complete
the work on the home The city will assist the homeowner in this process The
following is the process that will take place when procuring a contractor
A notice will be placed on the city's website and in the newspaper advertising a
mandatory "pre-bid" meeting to be held at the home. Contractors will arrive on that
day along with the HRPC and will walk through the home and the work write up will
be discussed. Each contractor will be required to submit a bid to the City of Apache
Junction's Office of the City Clerk on the date and time specified in the
advertisement
The contractor is not allowed to discuss any compensation with the homeowner. If
the contractor has any questions regarding the project and/or the bidding
procedures they must contact the HRPC.
Once the bids have been received, the city will review the information and
determine if the contractors are eligible to participate in the program. There are
requirements that each contractor must have in order to be eligible
The City of Apache Junction is not the contractor, does not recommend contractors,
does not choose the contractor and cannot guarantee the homeowner will be
completely satisfied with the work completed The HRP will however work closely
City cfApache dunction Housing Rehabilitation Prcgram Guidelines ; ;ce 16 of 30
,..
with the homeowner to help solve any problems and will help ensure the work
completed is functional, meets applicable codes and regulations, and is of quality.
The HRP does however suggest the lowest most responsive bidder be the
contractor awarded the project. Therefore the homeowner will be notified as to
which contractor that is. However the homeowner will be signing the contract with
the contractor and as such may select a qualified and eligible contractor to complete
the work on their home It should be noted if the selected contractor is not the
lowest bidder, the homeowner will be required to pay the difference of the bid
amounts. Once a contractor is selected all homeowners and the contractor will be
asked to come to City Hall and sign the required contract documents. A notice to
proceed will be issued after the documents have been executed No work can begin
until this has taken place
STEP 5 Construction
The contractor will be issued the notice to proceed and given a time frame to
complete the construction on the home The homeowner is not authorized to make
changes to the project scope of work All requests for changes must come through
the city's HRPC
STEP 6: Final Inspection
The city will not release payment to the contractor until a final inspection has been
completed on the home and the homeowner and city have signed off on the work
completed. All concerns should be discussed during this final walk through with the
contractor. Although there is a warranty on their workmanship, it is important to
discuss any concerns as soon as possible.
CONTRACTOR INFORMATION
Work Write-up ,nk
After the application has been received, the information verified and funding is
available, the HRPC will make an inspection of the property and prepare a work
write-up and cost estimate. Prior to creating the work write up, the city will request
from a BPI certified contractor to complete an Energy Audit on the home (See
Energy Efficiency Guidelines) The results of the audit will be incorporated into the
work write up.
The HRPC and homeowner will thoroughly discuss the work to be done. Once the
project scope is approved by the homeowner, the city will competitively procure a
qualified contractor that meets all of the procurement requirements of the city and the
Arizona Department of Housing.
Work write-ups will be completed by the HRPC. Specific building materials and
building methods will be left up to the discretion of the HRPC but must meet ICC
Ciiy of Apache lunctior,Housing Pehabrbtation Prcgtam Guidelines, page 17 of 30
Standards. The City of Apache Junction Housing Rehabilitation Construction
Guidelines will provide guidance on preparing the project scope The HRPC will
provide a rehabilitation cost estimate based on available information from recent
projects completed All new construction that requires substantial repair (more than
50%) of a system must meet the city's current building codes upon completion. The
rehabilitated home should at a minimum meet Section 8 Housing Quality Standards
and/or all city building codes, whichever is more restrictive, shall govern
The city wishes to encourage contractors to buy locally whenever possible
Request for bids
An advertisement will be placed in the Arizona Republic a minimum of fourteen (14)
days prior to the bid opening and/or an email notification will be sent to contractor's
listed on the Housing Rehabilitation Program's Bid List
The city will require bids from two or more licensed contractors to complete the work.
Contractors will be required to meet all City of Apache Junction and Arizona
Department of Housing requirements to be eligible to be awarded a contract.
Requirements include a current City Privilege Tax License; a valid contractor license
from the State of Arizona, listed on the Registrar of Contractors website and hold
valid insurance. Additionally, any contractor participating in the rehabilitation program
must be verified as being eligible to receive federal funds, thus a DUNS and CCR
number are required.
The City of Apache Junction encourages minority contractor participation in all
projects to include Disadvantaged Business Enterprises e.g Small Business
Enterprises, Minority-owned Business Enterprises, and Women-owned Business
Enterprises A copy of the City's Equal Employment Opportunity Policy is available
on-line at http //www aicity net/index aspx?nid=556 .
Proiect walk-thru
A mandatory pre-bid meeting will be scheduled prior to the acceptance of the bids to
invite all potential contractors to the project site to review the project scope in order
to offer an accurate quote The pre-bid meeting will also be utilized to answer
questions and offer information to the contractors and property owner The contractor
may not contact the homeowner prior to this meeting.
Proposal submissions
Proposals must be submitted by the date and time provided in the request for bids.
All proposals must be submitted in a minimum 8 1/2"x 11" letter sized envelope with
the words "Sealed Bid Residential Rehab" along with the address, and the name of
the owner of the project being bid This must be clearly printed on the face of the
envelope In addition, the name of the firm submitting the bid must be listed on the
City cf Apache Junc(ro;i h0,1sr1-9 Rehabddebon Prograin GUlde/Ines, pace 18 of 30
face of the envelope Failure to comply with the requirements of this paragraph may
result in such a bid being considered invalid and returned unopened to the sender.
All bidders will be notified via email of the bid awards.
Addendums
All addendums will be sent to interested bidders a minimum of 3 days prior to the
bid opening via email
Any changes in the finalized work write-up or specifications must be agreed upon in
writing and signed by both the Homeowner and the HRPC before they become
effective.
No change orders will be approved or paid if the work was completed prior to signed
approval by the HRPC Change orders shall not exceed 10% of the total bid price
unless the additional work was requested by the HRPC No side agreements
between the Contractor and Homeowner will be allowed.
Codes and Standard Specifications
The contractor is responsible for knowledge of the city's building codes. All work
must conform to Apache Junction Building Codes and/or meet approved Uniform
Building Codes unless otherwise specified in writing The property standards that
must be achieved as a result of assisted rehabilitation are established by the city's
building codes, the Federal Housing Quality Standards and the Arizona Department
of Housing's Housing Rehabilitation Standards, the Owner Occupied Housinq
Rehabilitation Weatherization Standards, and the City of Apache Junction Housing
Rehabilitation Program Construction Guidelines
The city's Energy Efficiency requirements incorporate the following standards:
BPI/BA Standards, IECC 2009, ASHRAE 62 2-2010, Energy Star, and Standardized
Work Specification.
Privilege Tax License
The contractor and all subcontractors must have an Apache Junction City privilege
tax license prior to beginning work after being awarded a contract for services
Subcontractors must be named on the Contractor Bid Proposal
Bid Award
Bid awards are done by the homeowner, however the City of Apache Junction's
Housing Rehabilitation Program will recommend the lowest most responsible and
responsive bidder. The City of Apache Junction's Housing Rehabilitation Program
reserves the right to reject any and/or all bids for reasons included but not limited to
the following:
City of Apache Junc,iion HoL,sing Rehabilitation Program Gu,dehres, 19 of 30
,..,
AlWb
1. The contractor is not licensed or his license is suspended or has been barred
from federal procurement or no procurement programs.
2. The contractor is not able to proceed with the project in a timely manner, has
failed to complete past projects in a timely or workmanlike manner or has
failed to respond appropriately to requests for warranty service
3 The bid submitted is more than 15% above or below the estimate and may
not be able to complete the project for this amount
4 The Contractor has failed to provide lien waivers as required below or has
had mechanic's liens filed by suppliers or subcontractors on past projects
5. Bidding forms are improperly filled out, incomplete or not using the correct
bidding forms provided.
Owner Bid Refection
The owner may reject any or all bids without cause subject to the following
provisions
1 The owner may choose to reject the lowest bid and select a contractor other
than the lowest bidder if the owner is willing to provide from his own funds an
amount equal to the difference between the low bid and the selected bid
2 The owner may reject all bids at any time up to three working days after the
contract is closed.
The contract will be between the homeowner and the contractor. However the
contractor and homeowner may not discuss the award or non-award of the project
until the city has completed the required procurement process. The city will serve only
as an administrator/financier to the contract The contractor must be a licensed
contractor in the State of Arizona, hold a city business license, be in good standing
with the Registrar of Contractors, and not appear on the excluded parties listing thus
shall have a DUNS and CCR number
Delays in Awarding Contract
Generally the contract will be closed and the work will begin within thirty (30) days
of the date of bid submission If thirty days has passed and no contract is signed,
the Contractor may honor the original bid or withdraw the bid. If the Contractor
chooses to withdraw the bid, the project will be offered to the next qualified low bid
or a new bid process will begin. The HRPC reserves the right to negotiate any bid.
Subcontractors
All subcontractors shall be named within the proposal submittal including their ROC
numbers Upon award, subcontractors are required to submit certifications, hold a
current City Privilege Tax License and a valid contractor license from the State of
Arizona Additionally, any subcontractor participating in the rehabilitation program
Ci(y cf l pache Junclicn Housing RehabdilePOn Program Guidelines; pace 20 of 30
.-. .�
must be verified as being eligible to receive federal funds, thus a DUNS and CCR
number are required.
Notice to Proceed
The Notice to Proceed issued by the City of Apache Junction's HRPC will identify
the start date All construction must begin within seven (7) days
A pre-construction conference will be held between the homeowner, the contractor
and HRPC to discuss work items, furniture moving, and other questions in need of
clarification All contractors will be required to secure a building permit from the city
and post it at the site.
Quality of Work Provided
General Contractors, sub-contractors and their employees qualified to perform the
installations for which they are responsible shall perform all work in a quality
workmanlike manner. The job site is considered a federal location and must, at all
times, be free from an individual chemical use. All moved or effected equipment
shall be returned to a completely functional nature The Contractor will make
provisions for the fact that homeowners will, at all times, occupy this dwelling during
the course of construction and need basic services at day's end.
Permits
The permit application for the project is prepared and submitted by the Contractor
The Building Permit will be issued upon receipt of payment from the Contractor The
permit must be picked up before beginning any work on the property Follow the
Building Department's procedures for scheduling inspections The Contractor is
responsible for all necessary inspections of the property
Clean-up
The job site should be thoroughly cleaned during and upon completion of the
project. All construction debris of every sort should be removed along with other
debris that may have been on the property or collected during the work Compact,
grade and rake any area disturbed by construction for proper drainage
Construction debris is to be hauled to the landfill and disposed of in accordance with
all local ordinances. Under no condition is debris to be left for city pick-up.
Timely Manner
Work should proceed in diligent manner after start-up Progress inspections will be
made almost daily. While material or subcontractor delays are sometimes
unavoidable, extended periods without progress or repeated unnecessary delays in
completing a project may constitute grounds for rejecting future bids. The
City of Apache Jurclion Hcus;ng Rehabilifabon Program Guidelines; page 21 of 30
contractor is expected to complete the job within the timeframe indicated in the
contract. There is a two-year warranty on workmanship and materials.
Owner Selections
The homeowner is allowed to select the following items:
1 One interior paint color
2 Exterior wall and trim color
3 Counter top color
4. One carpet color
5 One floor tale (grout to be sealed)
The contractor must supply the homeowner with a minimum of three (3) color
samples.
Payment
No payments shall be made to the contractors without written approval from the
HRPC and the homeowner, with the exception of disputed discrepancies which may
be resolved and paid with the signature of the HRPC The HRPC will monitor all
rehabilitation work during construction If progress payments are called for in the
contract, the homeowner and the HRPC will make an inspection of the work outlined
in the work write-up scheduled for completion before a progress payment will be
made.
A contractor may request a 50% draw when one-half of the contracted work is
completed and a 40% draw when 90% if the work is completed. The city will hold
10% retention for up to thirty (30) calendar days at the end of the contract to cover
closeout contingencies The contractor must submit all lien waivers,
warranties/guarantees prior to the release of the 10% retention
Warranties and Owners Manuals
The contractor shall warrant all work for a period of two (2) years or more, exclusive
of the manufacturer's warranty, from the date on the approval of the final inspection,
which will be signed by the homeowner and the HRPC. Major systems or items
necessary to make the property meet code should be analyzed on the basis of a
three year life expectancy. Major systems include roofs, heating, cooling, plumbing,
water heaters, and electrical components. When included in a project, warrantees for
all items such a new appliances/hot water heaters shall be given to the HRPC by
the contractor(s). All warranties well be provided to the homeowner.
Final Inspection
After the contractor has passed all permit inspections from the Building Department,
please inform the HRPC so that a final inspection can be scheduled. Approval of the
City cfApache Junction,Hous;ng Rehabddauon Program Gudeh es page 22 of 30
work by the city building inspector does not constitute acceptance of the
workmanship by the Housing Rehabilitation Program or the homeowner
The HRPC will schedule for a post audit to be completed All items identified by the
BPI certified technician shall pass the inspection If the improvements are not
completed accordingly, the technician will identify the deficiency and the contractor
will be required to make the necessary improvements to achieve the identified
energy efficiency goals No change order may be requested to cover the costs of re-
doing any work previously recommended.
Upon the homeowner's acceptance of the work completed, final payment will be
issued after final invoice and lien waiver are presented to the HRPC. Final payment
can be expected within 30 days of work completion and successful final inspection
In the event of any dispute between the owner and the contractor concerning the
completion of rehabilitation, the HRPC will work with both parties to negotiate a
satisfactory solution. If a solution cannot be arrived at, a grievance can be filed as
outlined below.
HOUSING MAINTENANCE AND HOMEOWNERSHIP EDUCATION
In addition to warranty brochures, the HRPC and Contractor shall conduct training in
the home to instruct the homeowners on the new equipment, appliances and general
housing maintenance counseling on items that had been installed in the home. The
city will provide a home maintenance document
The city's housing program also provides a Housing Programs and Services
Newsletter on a quarterly basis for all housing rehabilitation program recipients.
Homeownership Counseling is currently provided by the Arizona Department of
Housing and/or their designee
ENERGY EFFICIENCY GUIDELINES
The HRPC will write the bid specifications to include energy efficiency measures as
required by the Arizona Department of Housing Owner Occupied Housing
Rehabilitation Weatherization Standards Detailed information pertaining to the
Energy Efficiency requirements can be found in the city's Housing Rehabilitation
Program Construction Guidelines
The City's requirements incorporate the following standards BPI/BA Standards,
IECC 2009, ASHRAE 62.2-2010, Energy Star, and Standardized Work Specification
LEAD BASED PAINT REQUIREMENTS/ PRE-1978 HOUSING
On September 15, 1999, HUD published a Final Rule at 24 CFR Part 35 to implement
new regulations with regard to lead-based paint in compliance with the Residential
iafy of Apache.Jun(,bon Housing Rehabilitation Program Gwdelires, 23 o1 30
Lead-Based Paint Hazard Reduction Act of 1992. This Rule was effective on
September 15, 2000. ADOH received permission from HUD to defer implementation
of this Rule until January 10, 2002
As of January 10, 2002, any CDBG or HOME awards made by the ADOH after
January 10, 2002, and used to fund housing rehabilitation projects are required to
comply with these lead-based paint requirements. However, CDBG or HOME awards
made by the ADOH before January 10, 2002, and used to fund housing rehabilitation
projects, whether or not the actual projects have been started, will not be subject to
these requirements. In order to comply and implement these lead-based paint
requirements, the HRP shall use as guidance the ADOH Housing Bulletin #1 issued
by the Office of Housing Development ("OHD") on December, 2001 The HRP shall
specifically adhere to the evaluation, disclosure, work requirements, and clearance
procedures contained in this Bulletin Any interim control or abatement procedures
of lead-based paint hazards as prescribed by HUD requirements shall be included in
the scope of work The HRP shall also attempt to obtain lead-based paint general
liability insurance for lead-based paint hazards and encourage contractors to secure
lead-based paint hazard liability insurance
The HRPC will provide the homeowner with the EPA/HUD Pamphlet "Protect Your
Family from Lead in Your Home". The HRPC shall also provide the homeowner with
the Lead Based Paint Notification for the homeowner's review and signature The
HRPC shall specifically review the notification form with the homeowner and make
every effort to ensure the homeowner is aware of the hazards and ways to avoid lead
based paint poisoning The executed notification is retained in the
homeowner/client's file and a copy is provided to the client If lead based paint
hazards are identified and treated by a certified lead based paint risk Assessment
Company, the HRPC shall meet with the recipient and discuss the findings contained
in a Risk Assessment Report. The recipient shall also sign off on the report to reflect
that the findings contained in the Risk Assessment Report were explained and
discuss with the recipient. The Risk Assessment Report shall then become a part of
the recipient's file
All brochures regarding lead-based paint hazards are available in alternate format for
non-English Spanish speaking persons upon request
CONFLICTS OF INTEREST
1) Any person who is an employee, agent, consultant, officer, or elected or
appointed official of the City may not obtain a personal or financial interest or
benefit from this activity, nor may they have an interest whatsoever, however
remote, in a contract, subcontract or proceeds either for themselves, their
family or business ties during their tenure, or for one year thereafter
2) No contract will be awarded to a contractor who is related, or whose employee
is related to the applicant by blood or marriage.
City of Apache function Housing Reha bditahon Program Guidehres page 24 of 30
Upon written request to the HRP in care of the Apache Junction Development
Services Department, the Development Services Director, or his/her designee, will
determine if a conflict exists
COMPLAINT AND GRIEVANCE PROCEDURE
Applicants, Program participants, or contractors may initiate a complaint by
submitting concerns in writing to the City of Apache Junction Development Services
Director, or his/her designee. at 300 East Superstition Boulevard, Apache Junction,
Arizona 85119.
The Development Services Director, or his/her designee, is responsible for receiving,
reviewing, and responding to all complaints including prequalification of applicant or
contractor qualification The City must issue a written response to any complaint
within ten (10) working days of receipt.
If unsatisfactory to the complainant, a written appeal of the City's response shall be
filed within ten (10) working days of receipt of the City's response. Appeals shall be
made to the City Manager, by sending such appeal to 300 East Superstition
Boulevard, Apache Junction, Arizona, 85119 Attn: City Manager. The City Manager
shall be the final administrative decision maker. Further judicial appeals shall be in
accordance with A.R.S. Title 12, 12-901
Assistance from the City in preparing a grievance is available at no charge if needed
due to either a disability or language limitation Assistance will be provided through
the Development Services Department at (480) 474-5090 TDD (480) 983-0095, FAX
(480)474-5102 or 300 East Superstition Boulevard, Apache Junction, Arizona 85119
Additionally, the City of Apache Junction has adopted an internal complaint procedure
providing for prompt and equitable resolution of complaints alleging any action
prohibited by the federal regulations implementing Title 11 of the Americans with
Disabilities Act ("ADA") and Title VI of the Civil Rights Act of 1964, as amended. Title
II states, in part that "no otherwise qualified disabled individual shall, solely by reason
of disability, be excluded from the participation in, be denied the benefits of, or be
subjected to discrimination" in programs or activities sponsored by the city
All ADA and Civil Rights complaints made against the city, its employees,
representatives, and contractors relating to facilities, programs, services and
projects, shall be required to adhere to this process in order to file a grievance
All equal employment opportunity complaints shall be filed with the Human
Resources Department and may not be handled in the same manner as ADA and
Civil Rights complaints under Titles 11 and VI.
Cay of Apache Junction Housing Rehabdifation Prcgrain Gudehres pace 25 of 30
A . ..
Civil rights complaints are valid when the legal basis for the complaint is due to
discrimination on the basis of race, color, national origin, religion, sex, disability, or
familial status.
Depending on the complaint, the following persons shall be responsible for
determining a resolution
AdMft Complaints filed against the city whether a city program, service or project,
will be reviewed by the ADA and Civil Rights Coordinator ("ACRC") and
forwarded to any applicable state and/or federal agency as required under
their guidelines.
Additionally, the Arizona Department of Transportation ("ADOT") Civil Rights
Office will be provided all civil rights complaints regardless of the nature of
the complaint relevant to a project funded in whole or in part by ADOT
funding ADOT will then follow their procedures to determine if the complaint
is relevant to their area of jurisdiction. Subsequently, the ACRC and/or ADOT
will make a determination and resolve the complaint within 60 calendar days
Complaints filed against a contractor hired by the city shall be reviewed by
the ACRC and a copy shall be provided to ADOT within 60 days. The
complaint will be reviewed, investigated and resolved within 60 calendar
days.
Complaints should be addressed to: Bryant Powell, ADA and Civil Rights
Coordinator, 300 East Superstition Blvd., Apache Junction, Arizona, 85119, (480)
474-5066
1 A complaint shall be filed in writing or digitally. It must contain the name and
address of the complainant, and describe the nature and the date of the
alleged violation of the regulations The complaint must be signed by the
complainant or by someone authorized to do so on his or her behalf A
complaint form is available on-line at www aicity net/ada or by asking any city
staff member.
2. A complaint must be made within 30 calendar days after the complainant
becomes aware of the alleged violation.
3 The ACRC will call or meet with the complainant no later than 8 city working
days after receipt of the complaint An investigation, if needed or if
appropriate, may follow the meeting The investigation shall be conducted by
the ACRC. Any investigation should be informal but thorough, affording all
interested persons an opportunity to submit information relevant to the
complaint
City ofApac!re Junction HOUSR70 Rehab,Ltatron Progian? Gurdehres /age 26of 30
4 The ACRC shall issue, as soon as possible, but not later than 30 calendar
days after the complaint is received, a letter or email acknowledging the
complaint, which includes a description of the resolution to the complaint
The decision of the ACRC shall be binding and final subject only to an appeal
pursuant to A.R.S. 12-901, et. seq.
5 The ACRC shall retain all complaint records and associated documents
pursuant to the city's record retention requirements, and shall dispose of
them in accordance with such policy.
6 The right of a person to file a complaint under this procedure shall not affect
the complainant's right to pursue other remedies such as filing of a complaint
with the responsible federal or state agency Use of this grievance procedure
shall not extend the time for filing any complaint with the responsible federal
or state department or agency.
MARKETING
The Housing Rehabilitation Program will be marketed using the following media:
Brochures, Flyers, City of Apache Junction Website, the Housing Programs and
Services Newsletter, The Citizen (Parks & Recreation Publication), City of Apache
Junction's Cable Channel, the city's grants blog
www apachelunctiongrants.wordi)ress com, and local newspapers including AJ
News and the Independent
Direct marketing to neighborhoods may also be conducted by mailing a postcard to
residents within a targeted area notifying them of the city's programs.
Distribution of marketing materials will be through a local network of human/social
services agencies and at general posting locations throughout the city which include
but are not limited to the outlets below: .�
Human/Social Service Agencies
TRIAD Neighborhood Watch Groups
Pinal County Housing Pinal County Volunteer Center
CAAFA CAAG RSVP Program
ABIL CAHRA
Salvation Army Area HOA's
Apache Junction Food Bank Boy's and Girl's Club
Project Help HOPE Women's Center
Apache Junction Senior Center Apache Junction School District
Apache Junction Community Development Corporation
Apache Junction Chamber of Commerce
Central Arizona Council on Development Disabilities
City of Apache Junction Victim Assistance (Police Department)
City of Apache Junction Victim Advocate (City Attorney's Office)
City of Apache Junction Housing Rehabcdation Program Guidehnes, ,ale 27 of 30
Superstition Mountain Mental Health Center
Posting Locations
City Hall Library
Parks and Recreation Multigenerational Center
The City will make every effort to accommodate persons with disabilities and non-
English speaking persons See the section entitled Assistance to Applicants for
additional information
STAFFING AND ADMINISTRATIVE REVIEW
All administrative and supervisory work will be done by city staff Procedures to
protect applicants, HRP participants, and contractors are outlined in the sections
entitled Complaint and Grievance Procedure and Non-Discrimination
The City of Apache Junction's HRPC will be responsible for the following application
intake; income verification, case management, contractor procurement,
change order approvals, and final inspection
The HRPC can be reached at 300 East Superstition, Apache Junction, Arizona
85119 The HRPC can also be contacted at (480) 474-5090 or TDD (480) 983-0095
6- •r Program
Coordinator
Finance
Director
NON DISCRIMINATION
The City of Apache Junction, or any of its sub recipients, do not discriminate in any
activity on the basis of race, color, religion, sex, disability, familial status, or national
origin.
The City of Apache Junction is an Equal Opportunity Employer, Minority Contractors
participation is encouraged DBE/MBE/WBE A copy of the City's Equal Employment
Opportunity Policy is available on-line at http://www aicity net/index aspx?nid=556 .
ASSISTANCE TO APPLICANTS
Should an individual need assistance in preparation of an application, assistance
will be provided, at no charge, through the Development Services Department The
City of Apache donclion Nous1130 Rehao1h1al;or; Program C'uidehl!es — 28 of 30
..,,
Department can be reached at 300 East Superstition, Apache Junction, Arizona
85119. Assistance can also be requested at (480) 474-5090 or TDD (480) 983-
0095. Applicants may request assistance because of a- 1) physical/mental/
emotional disability or 2) limited ability to speak/read English.
FAIR LABOR STANDARDS
The provisions of the FLSA are not applicable to the rehabilitation of single family
homes under this program
APPLICABLE DOCUMENTS
The city's HRP uses guidance from the following sources of information pertaining to
the administration of the HRP:
1) Arizona Department of Housing Owner Occupied Housing Rehabilitation
Standards
2) United States Department of Housing and Urban Development Housing
Quality Standards.
3) United States Environmental Protection Agency Information regarding
Lead Based Paint
4) Arizona Department of Housing, State Housing Fund Program Summary
and Application Guidelines
5) Arizona Department of Housing Community Development Block Grant
Handbooks.
6) Arizona Department of Housing Owner Occupied Housing Rehabilitation
Weatherization Standards.
7) City of Apache Junction City Ordinances and adopted Building Codes
8) City of Apache Junction Housing Rehabilitation Program Construction
Guidelines.
CHANGES TO HOUSING REHABILITATION PROGRAM GUIDELINES
The Housing Rehabilitation Program Guidelines are generally adopted with revisions
annually, however should an emergency change within the Housing Rehabilitation
Guidelines as adopted by the city council be required throughout the program year,
the Mayor shall submit a letter in writing to the Arizona Department of Housing ten
(10) days prior to the change coming into effect.
FORMS
A complete packet of forms utilized by the Ctty's Housing Rehabilitation Program are
available upon request. Below is the listing of those forms
Form Form
Application which includes Authorization for Work Write Up including cost estimates
Release of Info,Verification of Employment, Owner Acceptance of Work Write Up
Affidavit of Non-Income,Declaration of Contractor Participation Statement
Citizenship Contract between Contractor and Owner
Dit,of Apache Junction Housing Rehabilitation Program Guidelines; rage 29 of 30
A11111. ''"
Income Verification Determination Sheet Owner's Color Preference Verification
Agreement which includes Certification of Change Orders
Principal Residence,Federal Assistance Final Acceptance of Work Completed
Notice,Complaint and Grievance Procedure, Final Invoice and Waiver of Lien
Disclaimer Truth In Lending Form,Right of Rescission,Promissory Note,
Development Services Due Diligence Deed of Trust,Release of Lien
C,ty of Apache Junction 1'oLlsmg RehabrGtabon Program Guide!n-,es N;:ce 30 of 30
QACH��G
CITY OF APACHE JUNCTION, ARIZONA
HOUSING REHABILITATION PROGRAM GUIDELINES
As Adopted by the City Council on February 1, 1994
Modified by the City Council on January 17, 1995
Addendum by the City Council on March 21, 1995
Modified by the City Council on June 20, 1995
Modified by the City Council on March 7, 2000
Modified by the City Council on May 15, 2001
Modified by the City Council on February 5, 2002
Modified by the City Council on January 16, 2007
Modified by the City Council on June 5, 2007
Modified by the City Council on November 18, 2008
Modified by the City Council on December 15, 2009
Modified by the City Council on December 6, 2011
Modified by the City Council on January 15, 2013
Modified by the City Council on April 1, 2014
Modified by City Council on January 20, 2015
The city council of the City of Apache Junction adopts the following Housing
Rehabilitation Guidelines to assist the city in administering the city's Housing
Rehabilitation Program This program is intended to provide safe and decent housing
to City of Apache Junction residents by offering funding options to assist homeowners
with the rehabilitation or modification of their home
PROGRAM PURPOSE (GOALS)
1. Eliminate health and safety hazards in homes;
2 Benefit very low-, low- and moderate-income residents; and
3. Improve neighborhoods and encourage stability.
Cl(v o`Apache J✓nciion Housing,Rehabihiabon Program Gu!oehnes: pace 1 of 29
TABLE OF CONTENTS
Program Purpose and Goals 1
Program Design 3
Target Area 3
Eligibility Requirements 3
Property Standards 6
Allowable Work Items 6
Non-allowable Work Items 8
Rehabilitation Assistance Plans 8
Emergency Housing Repair 8
Housing Accessibility 8
Housing Rehabilitation 9
Replacement 9
Permit Fee Fund 9
Deferred Payment/Forgivable Loans 11
Exceptions to the Maximum Allowed 11
Recapture Period 11
Loan Servicing Policy/Subordination 12
Revolving Loan Fund/Program Income 12
Third Party Income Verification 12
Method for Determining After Rehab Value 13
Homeowner Information 14
Contractor Information 17
Housing Maintenance and Homeowner Education 23
Energy Efficiency Guidelines 23
Lead Based Paint Requirements 23
Conflict of Interest 24
Complaint and Grievance Procedures 25
Marketing 27
Staffing and Administrative Review 28
Non-Discrimination 28
Assistance to Applicants 28
Fair Labor Standards 29
Applicable Documents 29
Changes to Program Guidelines 29
Forms 29
C11y cf Apache Junciion hio,jsing Piehabllllallon PrOT-a171 Guidelines page 2 of 29
PROGRAM DESIGN
The focus of the Housing Rehabilitation Program (hereinafter "HRP") is to increase
the life and improve the livability of homes owned by very low-, low- and moderate-
income families by correcting code violations, solving health and safety issues,
addressing accumulated deferred home maintenance projects, and providing
sustainability by weatherizing homes
Funds for the program are primarily provided through the, 1) Community
Development Block Grant: Program ("CDBG") and 2) State Housing Fund ("SHF")
including HOME and State Housing Trust Funds as administered by the Arizona
Department of Housing ("ADOH").
Owner-occupied housing rehabilitation ("OOHR") assistance to homeowners in the
SHF funded portion of the city's HRP may be in the form of deferred
payment/forgivable loans
OOHR assistance to homeowners in the CDBG funded portion of the city's HRP may
be in the form of grants or deferred payment/forgivable loans
Unless specifically stated to the contrary, comments contained in these guidelines
are applicable to both the CDBG and SHF funded portions of the city's HRP.
TARGET AREA
The program will be open to all full-time permanent residents who live within the
incorporated boundaries of the City of Apache Junction, excluding those who live in
designated ineligible areas or structures as outlined in the eligibility requirements
below CDBG funds may only be used in the Pinal County portion of the city.
ELIGIBILITY REQUIREMENTS
To be eligible, the applicant and the property to be rehabilitated must meet the
following criteria
♦ Located within the incorporated boundaries of the City of Apache Junction,
excluding the Maricopa County area.
♦ Feasible for rehabilitation under the time and monetary constraints of the
program.
♦ Owned and occupied by a full-time permanent resident of Apache Junction.
♦ Applicants must have a verifiable income that falls below 80% of the area
median income as indicated by The US Department of Housing and Urban
Development and the State of Arizona—State Housing Fund Program income
City of Apache Ju.%coon housing Rehabilitation Program Guidelines, page 3 of 29
limits for very low-, low- and moderate-income families. Income guidelines are
updated annually. Income verification is valid for a period of six (6) months.
Upon expiration of income verification information, applicants must complete
and submit new income verification documentation Income must be
anticipated and verifiable for the next 12 months. Required documentation of
income can be found under Third Party Income Verification within this
document.
have assets that total more than $25,000 (e g. GaGh, GWGks, IDORG16, FneRGY
market aGGGHMG, IRA, etG.) Thus is exc4usive of the heme they live iR, tW9
♦ Provide proof of homeowner's insurance.
♦ For the purposes of eligibility, self help or "sweat" equity are not allowable
forms of equity
♦ The current owner must have occupied the structure for at least one (1) year
prior to program entry.
♦ Preference will be given to households applying for funding that meet one of
the following criteria 1)be elderly(62 years of age or older), 2) have a disability
(a legally recognized physical/mental/emotional condition that limits the
performance of daily living skills); or 3) have minor child (ren)age 17 and under
related to head of household residing in the residence.
f A.R.S. 1-501 and 1-502 requires that all homeowners who receive services
under the program shall provide proof of lawful presence in the United States
including a sworn affidavit that the required documentation is true under
penalty of perjury
♦ Owner is to complete any recent construction project underway prior to the
city's approval of rehabilitation assistance.
♦ Manufactured and mobile homes are deemed eligible contingent upon- 1)
applicant (s) having owned and occupied both property and dwelling for one
(1) year prior to program entry, and 2) the home being permanently attached
to a foundation, either as a pre-existing condition or as a work element of the
HRP.
♦ Properties in non-conforming zoning, properties located within 1,000 feet of
an explosive/flammable operation, properties with open, unresolved building
or code compliance cases and homeowners unwilling to follow the City of
Apache Junction Program Guidelines, are not generally eligible for
rehabilitation under this program
City of Apache Ju1-,c1,01, Houstno Rehabihlabon Program Guidelines, - 4 of 29
-^
♦ Homes of historical value may only be eligible upon favorable review by the
State Historic Preservation Office.
♦ Manufactured homes that were built before June 1976 are not eligible to
receive housing rehabilitation funding, however they are eligible for emergency
and housing accessibility assistance.
♦ The rehabilitation of dwellings located in the 100-year floodplain are not
eligible for participation in the rehabilitation program
♦ Properties that are classified "non-conforming" are not generally eligible for
rehabilitation However, if the proposed rehabilitation is non-structural and
there are no properties waiting to be rehabilitated, nonconforming properties
that meet all other eligibility criteria may be considered
♦ Properties with an open building or code case are generally not eligible for
rehabilitation However if the case is relating to a correctable building condition
HRP funds can correct under the requirements of the program, then the unit
will be deemed eligible.
♦ Properties rehabilitated through this program must be free of any
encumbrances such as liens or judgments. Properties may be encumbered
by a mortgage in first position so long as a financial institution or other such
mortgage company holds that mortgage; however, there must be sufficient
equity remaining to justify placing a lien for the rehabilitation deferred
payment loan in second position Properties encumbered by
mortgages/loans held by individuals or partnerships are not eligible unless a
warranty deed is recorded and a lien may be placed on the
property Mortgage payments and insurance premiums must all be current
Apache age of IS.- A
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Click here to view
the income limits for
program eligibility
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City of Apacne Junction Housing Rehabiiifaficn Program Guidelines, page 5 of 29
PROPERTY STANDARDS
The property standards that must be achieved as a result of assisted rehabilitation
are established by the most recent state and local building codes, the Federal
Housing Quality Standards, Arizona Department of Housing's Housing Rehabilitation
Standards, the Owner Occupied Housing Rehabilitation Weatherization Standards,
the City of Apache Junction Housing Rehabilitation Program Construction Guidelines,
the Uniform Federal Accessibility Standards and the Americans with Disabilities Act,
as applicable and needed by the homeowner
The city's Energy Efficiency requirements incorporate the following standards:
BPI/BA Standards, IECC 2009, ASHRAE 62.2-2010, Energy Star, and Standardized
Work Specification.
ALLOWABLE WORK ITEMS
HOME guidelines require an entire dwelling be brought up to local code. A preliminary
property inspection is completed to assist with ensuring homes meet Housing Quality
Standards ("HQS") and are safe, sanitary and decent
Priorities have been established for determining the work that will be completed in
the eligible homes.
1 Code Violations
2 Issues of Health and Safety
3 Weatherization Standards/ Energy Efficiency
4. Improvements of a Cosmetic Nature
The following must also be taken into consideration when determining the priority of
items for inclusion in the work-write up (Scope of Work):
1. The age and the physical condition of the building,
2. The goal of the program (building revitalization or direct benefit);
3. Funds available for rehabilitation of each unit; and
4. Value of unit after rehabilitation.
The following levels are utilized to determine priorities for the HRP-
• Level 1 Initial inspection reports must include items in Level 1.
• Level 2: Items included on Level 2 are also considered critical but not as
critical as those items in Level 1 Other items are considered less critical and
should always be inspected but may not be rehabilitated.
City cf APache Junction Houslrg Rehabilitation Program Guidelines. pace 6 of 29
• Level 3. The items on List 3 should be reviewed, and where feasible,
corrected. These items must also be included whenever substantial
rehabilitation is taking place.
• Items from all levels must be included in the preliminary inspection report for
all construction projects and those where the cost of rehabilitation exceeds
75% of the value of the property.
Level 1 - Items that must be included in the inspection report and must be repaired
or replaced:
1. Lead Based Paint Assessment (only on properties built prior to 1978)
2. Hazardous Materials
3 Health and Safety Hazards
4 Stable and Weather Tight Roof
5 Electrical System - the unit must have a minimum 100-amp electrical
service, with no unsafe conditions
6. Plumbing (including hot water) - Must be in good working order and be safe
and sanitary
7 Heating and Coolirg Systems - must be adequate and safe with a
reasonable (three year) useful life
8. Egress in accordance with local health and safety codes
9. Trip Hazard (HQS Standard)
Level 2 - Items that must be included in the inspection report and should be
repaired or replaced:
1. Structural soundness and integrity (including rotted or deteriorating materials
and those impacted by termites and/or other wood-boring insects).
2 Siting of the structure and its relationship to water penetration that may
impact structural integrity. ,r
3. Appropriate kitchen facilities including a sink and means of cooling and
heating food to healthful standards.
4. If the structure has an attached garage, appropriately-rated fire wall between
garage and living areas
5 Weatherization items
The above mentioned items are first priority items that shall be included in every
inspection report. These items shall also be included in the Work Write-Ups (funds
permitting) and shall receive priority in work to be completed as part of the
rehabilitation project. Repair or replacement may take place based on the amount of
available resources.
Level 3 - Items that must be included in the inspection report and may be repaired
or replaced
City of Apache Junclion Hcusmg Rehabiillabon Program Guidelines, pane 7 of 29
I Debris that may be a fire hazard
2 All existing exposed surfaces painted or sealed and not presenting a health
or safety hazard.
3 Cabinetry
4. Finished flooring
5. Repair and replacement of doors and windows not presenting a health or
safety hazard
The above mentioned items shall be included in every inspection report and may be
included in the Work Write-Up (funds permitting). These items generally result from
deferred maintenance and are considered general improvements
The City wishes to encourage contractors to buy locally whenever possible
NON ALLOWABLE WORK ITEMS
None of the program funds shall be used for temporary/long term relocation of
applicants during periods of home rehabilitation/repair. No funds shall be used to
reimburse the homeowner for work completed
REHABILITATION ASSISTANCE PLANS
1. EMERGENCY/MINOR HOUSING REPAIR PLAN
A grant plan that assists homeowners in the elimination of an imminent threat to life,
safety or health, the necessary repairs may include, but shall not be limited to: roofs,
floor repairs, window/door replacements, and wall and ceiling repairs The minimum
assistance is $1,000 and the maximum assistance is$15,000 per recipient. The grant
may address no more than two (2) emergency conditions, unless approved by the
Development Services Director, or his/her designee, due to some extenuating
circumstances. A structure may be eligible for an Emergency Grant even though it
may not meet structural integrity requirements After a recipient has received services
through the Emergency Housing Repair program they may not be eligible to receive
additional services until five years after the completion of the project unless the
emergency services enable the homeowner to remain in their home until the home
can be rehabilitated under the city's Housing Rehabilitation Plan or replaced under
the city's Replacement Plan. Additionally, no single owner of a home may receive
more than two emergency assistance grants
2. HOUSING ACCESSIBLITY PLAN
A grant or deferred payment/forgivable loan plan that assists homeowners to make
their residence physically accessible. Assistance can be either structural changes or
purchase of durable medical equipment (if it becomes a permanent part of structure)
and may include rarrips, grab bars, handrails, raised toilets, lowered light switches,
automatic door openers, visual alarms, transfer shower benches, and hand held
Ct,of Apache Jur,ccon ,ti'cusing Rehabililafion Program Guidelines cF 8 of 29
showers. Grants are limited to $2,500 per recipient This program is offered through
the city's partnership with Community Action Human Resources Agency(CAHRA)or
may be a component of another rehabilitation plan.
3. HOUSING REHABILITATION PLAN
A grant or deferred payment/forgivable loan plan that assists homeowners to address
safe, sanitary, and decent housing rehabilitation issues. Rehabilitation projects may
either be major or minor. Grants and deferred payment/forgivable loans are limited to
a minimum of$1,000 and a maximum as required by the grant from which the funds
will be expended, this amount may change each funding year Mobile/manufactured
homes and conventional, site-built homes have different maximum investments.
HOME funds cannot be utilized in the form of a grant In the HOME Program,
weathenzation, emergency repairs, or accessibility projects may be undertaken
only if the property is brought up to the State's rehabilitation standards upon
completion When a recipient receives a deferred payment/forgivable loan, no further
investment of CDBG funds can be made on the home until after the recapture period
has expired. No additional HOME funds may be invested However, should the
recipient receive any housing rehabilitation services in the form of a grant, they may
not be eligible to receive additional services until five years after the completion of
the project
4. REPLACEMENT PLAN
A grant or deferred payment/forgivable loan plan that assists homeowners with the
replacement of unsafe, hazardous living conditions by providing a new
manufactured or site-built home. This plan provides a maximum investment as
stipulated within each grant from which the funds will be expended. This amount
may change each funding year and is intended for the construction of a new home
or for the replacement of a manufactured home Manufactured homes may not be
replaced with site built homes. HOME funds cannot be utilized in the form of a
grant When a recipient receives a deferred payment/forgivable loan, no further
investment of CDBG funds can be made on the home until after the recapture
period has expired No additional HOME funds may be invested. The city will make
every effort to eliminate or reduce the need for relocation during construction.
Homeowners may be encouraged to find temporary housing with family or friends
In the event that no options exist, the city may use grant funds to pay for temporary
accommodations
5. PERMIT FEE FUND
In 2003, the City of Apache Junction created a revenue fund (004-04420-422-225)
in order to track and collect permit fees that have been paid for by contractors that
are participating in the City's Housing Rehabilitation Program. The fees that were
collected were to be used to supplement and support the activities of the City's
Housing Rehabilitation Program These fees are collected in accordance with the
City of Apache Junciror;Housing Rehabilitation Program Guidelmes, Duce 9 of 29
.aiah�
City of Apache Junction City Code, Volume I, Chapter 7, Article 4-4 Sections A
through I.
All relevant fees shall be due payable by the contractor prior to the start of
construction on any City of Apache Junction housing rehabilitation project. These
fees will be tracked by the Housing Rehabilitation Program Coordinator ("HRPC")
and reported to the Finance Director for deposit into the appropriate revenue
account. This account will be tracked to ensure accurate balance and expenditures
Eligible expenses to be withdrawn from this account shall be minor repair items that
are eligible under the City of Apache Junction's Housing Rehabilitation Program and
the adopted Housing Rehabilitation Guidelines. Recipients of these funds, however,
must be homeowners that are not eligible under the same guidelines or available
funding programs. These repairs must be determined an emergency by the
Program Coordinator. Further, the Coordinator must have found that there is no
other funding or community assistance can be located for the homeowner. Eligible
homeowners must be either elderly (over the age of 62), disabled, or have children
under the age of 18 occupying the home and the total household income must not
exceed 80% of the area median income.
When an expense is determined to be eligible to be charged to this account, the
Coordinator will submit a check request along with an invoice for payment to the
finance department The maximum amount payable toward any project shall be
$1,000 unless otherwise approved by the Development Services Director.
i� Emergency flousing
Replacement Rehabilitation
Rehabilitation
t
A Replacement may be provided to Eligible Homes!� �� �`B Eligible Homes
homeowners when the cost to 1)Single family homes,manufactured; - 1)Single family,
rehabiltate their home exceeds the homes,condos,and townhomes,
maximum investment allowable 2)Post-1976 manufactured homes
2)Pre-1976 manufactured homes,r affixed to a foundation,
Replacement homes will be site built 3)Manufactured homes affixed to a 3)Condos and town homes,
w homes,where zoning allows for such foundation, 4)Homes without embumbrancese.g
construction 4)Homes with encumbrances e.g reverse mortgage and liens,excluding a
reverse mortgage and liens excluding a first mortgage
first mortgage.)
Manufactured homes maybe used as a - -
replacement in areas where zoning Eligible items
does not allow for site built homes Eligible items, 1)Complete rehabilitation of home;
1)Acessibility improvements, 2)Address all code,health and safety
A lien is placed on the home for the 2)Health and safety improvements, items,
extent of the recapture period which is 3)Limited to two improvements per 3)Incorporate energy efficiency
based upon the total investment grant improvements;
amount
4)Accessibility items
Assistance provided
Grant not to exceed$IS,000 Assistance Provided
Limit assistance to two times per home Defeued Payment Forgivable Loan
Single family home maximum
investment$60,000
Manufactured home maximum
investment$20,000
No additional assistance during
recapture period
A lien is placed on the home for the
extent of the recapture period which is
based upon the total investment
amount
City of Apache l✓nctron HO,ising Rehabilitation Program Guidelines page 10 of 29
DEFERRED PAYMENT/FORGIVABLE LOANS
All deferred payment forgivable loans are secured by a lien and promissory note A
percentage of the total assistance provided on forgivable loans will be forgiven on
the anniversary date of the execution of the recording of the loan instruments
throughout the recapture period, provided that the dwelling unit continues to be
occupied by the original occupant or an income qualified immediate family member
The unforgiven balance of the loan shall become due and payable upon the sale of
the property. Properties encumbered by mortgages/loans held by individuals or
partnerships are not eligible unless a warranty deed is recorded and a lien may be
placed on the property HOME funds cannot be used in the form of a grant
The HRPC will be responsible for recording the required paperwork as determined
by the loan. The lien will be recorded at the Pinal County Assessor's Office and will
include applicable administrative costs and a contingency of 10% above the
Contractor's Bid The Deed of Trust will be placed on a tracking system by the HRPC
who will track the loan calculating the amount of dollars that will be forgiven as each
year passes until the loan has been completely forgiven as outlined in the HRGs. The
HRPC will send a letter to the homeowner annually advising the homeowner of the
status of their loan, identifying the amount forgiven and the amount that remains on
the loan. The city will be no lower than the first position on the lien of the home or
second if a financial institution held first position prior to the city recording the loan
documents A letter to the homeowner shall provide a reminder that the city cannot
subordinate the loan
EXCEPTIONS TO THE MAXIMUM ALLOWED
The Maximum investment for each project is stipulated under each grant program
from which the funding is expended. This maximum may change with each funding
year. However under no circumstance may the maximum per unit investment exceed
that which is determined by the geographic area 221 (d) 3 per unit limits based on
the number of bedrooms nor can the after rehabilitation value exceed the allowable
amount set by HUD (see Method for Determining After Rehabilitation Value section
below)
RECAPTURE PERIOD •Investment of$1,000-
$15,000
When a recipient elects to receive assistance in
0
the form of a deferred or forgivable loan, a *Investment of$15,001
recapture period applies. The recaptured � -. -$a0,00o
period is based on the amount of funds invested
in the assisted unit. Recipients may elect to have *Investment of$40,001
a recapture period that is longer than the required -$75,000
period When a recipient receives a deferred
*Investment of$75,001
and o ver
City cf Apache JL'nGiiOn Housing Rehabilitation Program Guidelines, page 11 of 29
payment/forgivable loan, no further investment of CDBG funds can be made on the
home until after the recapture period has expired No additional HOME funds may be
invested.
LOAN SERVICING POLICY/SUBORDINATION
After execution of the loan, subordination agreements with lending institutions will
not be honored since such practice is lending of city credit in violation of State
constitutional law. Properties rehabilitated through this program must be free of any
encumbrances such as liens or judgments. Properties may be encumbered by a
mortgage in first position so long as a financial institution or other such mortgage
company holds that mortgage, however, there must be sufficient equity remaining to
justify placing a lien for the rehabilitation deferred payment loan in second position
Should a refinancing request be made by the homeowner after the rehabilitation work
has been completed and a lien has been placed on the structure and the request has
been made prior to the end of the recapture period, the lien shall become due and
payable upon refinancing to the city. Thus, should the refinance be cash out, the city
will require payment in full of the lien. The city will be no lower than first position on
the lien of the home. As noted above, the city cannot subordinate the loan in any
manner.
REVOLVING LOAN FUND/PROGRAM INCOME
The City of Apache Junction does not currently have a revolving loan fund. Therefore
the City will track all loans In the event a house that has received services is sold
prior to the end of the recapture period, the city will enforce the repayment of the loan
in the amount that remains unforgiven. These funds will then be immediately
circulated into the Housing Rehabilitation Program and will be utilized prior to the use
of any new grant funds However when utilizing HOME funds, any recaptured or
repaid funds will be returned to the Arizona Department of Housing as retention of
HOME funds is not allowed by the Arizona Department of Housing
THIRD PARTY INCOME VERIFICATION
Upon receipt of the application, the HRPC will verify eligibility based upon the
homeowners income The definition of income is taken from 24 CFR Part 5 Gross
Income will be used to calculate income for all members of the household over the
age of 18 Income must be anticipated and verifiable for the next 12 months Typical
required documents to verify income will include, but are not limited to
1. Bank Statements including checking and savings accounts;
2 Paycheck stubs including tips, commission and bonuses, and overtime,
3 Earned Interest and Assets: This amount is calculated into the income if over
$5,000. Eligible assets include but are not limited to Value of Stock, Life
Cif,✓of Apache du-icbon housing Renabiiilaf;on Program Guidelines; pece 12 of 29
Insurance, 401 K, interest, CD's, Real Estate, Personal property not including
home,
4. Social Security,
5 Welfare Assistance,
6 Alimony and Child Support;
7 Minors Income specifically disability payments,
8. If self employed, must include the past three (3) years income tax returns for
net income,
9. Excluded items include earned income from minors (under age 18), full-time
student income (ages 18-23), disabled persons' income, and food stamps
Median Income Guidelines
HUD updates the Median Income Guidelines on an annual basis The most current
information can be found on the US Department of Housing and Urban
Development website
The city will utilize the HUD Income Calculator to determine income eligibility.
https://www onecpd info/iricomecalculator/
METHOD FOR DETERMINING AFTER REHABILITATION VALUE
Beginning August 23, 2013 HUD has established the HOME Maximum After-
Rehab Value Limits for owner occupied housing rehabilitation. These limits will
remain in effect and are updated as HUD issues newlimits.
The new HOME value limit for existing housing to be used for owner
occupied housing rehabilitation is 95 percent of the median purchase price for the
area based on Federal FHA single family mortgage program data and other
nation-wide data on the sales of existing housing.
To establish Project eligibility, after-rehabilitation value must be established
prior to any work being performed. The after- rehabilitation value may be
established by one or more of the following methods
1 Estimates of value E=stimates of value by the subreciptent may be used
Project files must contain the estimate of value and document the basis by
which the value estimates were derived. (For example, a Real Estate Broker's
price opinion with supporting comparable sales.) Websites such as quizzle.com,
zillow.com and trulta.com may be used to determine an estimated value
2. Appraisals: Appraisals, whether prepared by a licensed fee appraiser or by a
staff appraiser of the city, may be used. Project files must document the
appraised value and the appraisal approach used.
3. Tax assessments Tax assessments for a comparable property located in the
same neighborhood may be used to establish the after-rehabilitation value if
City of Apache J,rnction Housing Rehabilitation Program, Guidelines, 13 of 29
the assessment is current and accurately reflects market value after
rehabilitation.
HOMEOWNER INFORMATION
Applications are available by mail, in the Development Services office, or obtained
from the city's website at www.aicitYLnet/rehab by the applicant. Eligible applicants
will be prioritized on a first come, first served basis, unless the nature of the project
constitutes an eminent threat to health or safety, as determined by the Building
Inspector
STEP 1: Waiting List
Once an application is approved and the homeowner is determined to be eligible to
participate in the city's HRP, they will be placed on a waiting list. Homeowner's will
be served based on two factors
1. A First Come - First Serve Basis
2. Based upon the funding availability of the program with which they are
eligible The city has several housing programs Based on their eligibility they
may not qualify for all programs.
Applicants can remain on the waiting list for up to 18 months or more before
receiving assistance The financial information provided with the application is valid
for 6 months Therefore homeowner's may be required to re-submit financial
information to re-certify they are eligible to participate in the program
A typical timeline for services may be'
Application is submitted
Review of application (eligibility determination 2 months
Placed on waiting list up to 1 year
Schedule initial meeting to discuss the program 2 months
Schedule home inspection 2 months
Determine work write up 2 months
Procure contractor 4 months
Signed documents/contracts 2 months
Construction 3 months
Final inspection 1 month
STEP 2 Interview
When the time has come to receive the benefits of the program an appointment will
be scheduled to make a home visit to discuss the details of the program and sign an
agreement All homeowners must be present.
City cf Apache Junction Housing Rehabilitation Program; Gudehnes. page 14 of 29
There are two basic programs in which homeowner's may be eligible. It will be
determined which program would best suit their needs once an inspection of the
home is completed and a cost estimate is determined Following are the two
programs
1. Emergency Rehabilitation: This program will address two emergency needs
within the home. This program is provided in the form of a grant. Once a
homeowner receives this service, they may not be eligible for additional
assistance for five years
2 Housing Rehabilitation This program will address all the necessary needs
within the home under the requirements of the program Health and safety
issues, code compliance and weatherization will be addressed. This program
is provided in the form of a deferred payment loan which will place a lien on
the property. A deferred payment loan means that over a given period of
time, the loan will be forgiven so long as the homeowner remains in the
home as their only and primary residence. Once they receive this service,
they may not be eligible for additional assistance until the loan has been
forgiven This recapture period is dependent upon the amount of funds
invested into the home.
STEP 3 Home Inspection
The city will complete an inspection on the home. This inspection will help to
determine what items will need to be completed on the home. Below is information
to help determine what items are eligible under the requirements of the program.
We would like to:
Eliminate unsafe and hazardous conditions, Improve living conditions and
extend the life of the home, Make the home accessible for family members
with special needs; Bring the home to minimum safe property standards and
local codes, Improve property values in the neighborhood, and Improve
energy efficiency
Areas we can provide help include: The program will NOT:
Electrical Accessibility Change of colors or styles
Plumbing Insulation Cover routine maintenance
Heating/Cooling Foundation Make the home took like new
Roofing Bath facilities
Walls Kitchen facilities
Painting Hot water
Windows/Doors Smoke alarms
If the home was built before 1978, a Lead Paint Inspection will be conducted by a
qualified contractor, as identified by the city
City of Apache Jaoctron Housing Rehabihlation Program Guidelines, page 15 of 29
An Energy Audit will be conducted by a BPI certified contractor, as identified by the
city Information provided by from the audit will assist the HRPC will creating a
project scope.
STEP 4 Work Write-up and Bid Process
After the inspections are complete a work write-up and cost estimate are
determined to assist with the procurement of a contractor The homeowner must
approve the project scope prior to procuring a contractor Priorities have been
established for determining the work that will be completed in the eligible homes.
1 Code Violations
2 Issues of Health and Safety
3 Weatherization Standards/ Energy Efficiency
4 Improvements of a Cosmetic Nature
The following must also be taken into consideration when determining the priority of
items for inclusion in the work-write up (Scope of Work):
1. The age and the physical condition of the building;
2 The goal of the program (building revitalization or direct benefit),
3. Funds available for rehabilitation of each unit; and
4 Value of unit after rehabilitation.
It is required that all projects competitively procure a licensed contractor to complete
the work on the home The city will assist the homeowner in this process. The
following is the process that will take place when procuring a contractor.
A notice will be placed on the city's website and in the newspaper advertising a
mandatory "pre-bid" meeting to be held at the home. Contractors will arrive on that
day along with the HRPC and will walk through the home and the work write up will
be discussed. Each contractor will be required to submit a bid to the City of Apache
Junction's Office of the City Clerk on the date and time specified in the
advertisement.
The contractor is not allowed to discuss any compensation with the homeowner If
the contractor has any questions regarding the project and/or the bidding
procedures they must contact the HRPC.
Once the bids have been received, the city will review the information and
determine if the contractors are eligible to participate in the program. There are
requirements that each contractor must have in order to be eligible.
The City of Apache Junction is not the contractor, does not recommend contractors,
does not choose the contractor and cannot guarantee the homeowner will be
completely satisfied with the work completed The HRP will however work closely
City of Apache Jwxbon Nousmg Rehabddatlon Progran? Guidebres, 16 of 29
with the homeowner to help solve any problems and will help ensure the work
completed is functional, meets applicable codes and regulations, and is of quality
The HRP does however suggest the lowest most responsive bidder be the
contractor awarded the project. Therefore the homeowner will be notified as to
which contractor that is However the homeowner will be signing the contract with
the contractor and as such may select a qualified and eligible contractor to complete
the work on their home. It should be noted if the selected contractor is not the
lowest bidder, the homeowner will be required to pay the difference of the bid
amounts Once a contractor is selected all homeowners and the contractor will be
asked to come to City Hall and sign the required contract documents A notice to
proceed will be issued after the documents have been executed No work can begin
until this has taken place.
STEP 5 Construction
The contractor will be issued the notice to proceed and given a time frame to
complete the construction on the home. The homeowner is not authorized to make
changes to the project scope of work All requests for changes must come through
the city's HRPC
STEP 6: Final Inspection
The city will not release payment to the contractor until a final inspection has been
completed on the home and the homeowner and city have signed off on the work
completed. All concerns should be discussed during this final walk through with the
contractor Although therE! is a warranty on their workmanship, it is important to
discuss any concerns as soon as possible.
CONTRACTOR INFORMATION
Work Write-up
After the application has been received, the information verified and funding is
available, the HRPC will make an inspection of the property and prepare a work
write-up and cost estimate Prior to creating the work write up, the city will request
from a BPI certified contractor to complete an Energy Audit on the home (See
Energy Efficiency Guidelines). The results of the audit will be incorporated into the
work write up
The HRPC and homeowner will thoroughly discuss the work to be done. Once the
project scope is approved by the homeowner, the city will competitively procure a
qualified contractor that meets all of the procurement requirements of the city and the
Arizona Department of Housing
Work write-ups will be completed by the HRPC. Specific building materials and
building methods will be left up to the discretion of the HRPC but must meet ICC
City of Apache Junction Housing Rehabilitation Program Guide�ines, 17 of 29
Standards The City of Apache Junction Housing Rehabilitation Construction
Guidelines will provide guidance on preparing the project scope. The HRPC will
provide a rehabilitation cost estimate based on available information from recent
projects completed. All new construction that requires substantial repair(more than
50%) of a system must meet the city's current building codes upon completion. The
rehabilitated home should at a minimum meet Section 8 Housing Quality Standards
and/or all city building codes, whichever is more restrictive, shall govern.
The city wishes to encourage contractors to buy locally whenever possible.
Request for bids
An advertisement will be placed in the Arizona Republic a minimum of fourteen (14)
days prior to the bid opening and/or an email notification will be sent to contractor's
listed on the Housing Rehabilitation Program's Bid List.
The city will require bids from two or more licensed contractors to complete the work
Contractors will be required to meet all City of Apache Junction and Arizona
Department of Housing requirements to be eligible to be awarded a contract
Requirements include a current City Privilege Tax License, a valid contractor license
from the State of Arizona, listed on the Registrar of Contractors website and hold
valid insurance Additionally, any contractor participating in the rehabilitation program
must be verified as being eligible to receive federal funds, thus a DUNS and CCR
number are required.
The City of Apache Junction encourages minority contractor participation in all
projects to include Disadvantaged Business Enterprises a g. Small Business
Enterprises, Minority-owned Business Enterprises, and Women-owned Business
Enterprises. A copy of the City's Equal Employment Opportunity Policy is available
on-line at http //www aicity net/index.aspx?nid=556
Proiect walk-thru
A mandatory pre-bid meeting will be scheduled prior to the acceptance of the bids to
invite all potential contractors to the project site to review the project scope in order
to offer an accurate quote. The pre-bid meeting will also be utilized to answer
questions and offer information to the contractors and property owner. The contractor
may not contact the homeowner prior to this meeting
Proposal submissions
Proposals must be submitted by the date and time provided in the request for bids
All proposals must be submitted in a minimum 8 1/2"x 11" letter sized envelope with
the words "Sealed Bid Residential Rehab" along with the address, and the name of
the owner of the project being bid. This must be clearly printed on the face of the
envelope. In addition, the name of the firm submitting the bid must be listed on the
City o;Apoche Junction Housing Rehabilitation Program Guidehnes. cage 18 of 29
face of the envelope. Failure to comply with the requirements of this paragraph may
result in such a bid being considered invalid and returned unopened to the sender.
All bidders will be notified via email of the bid awards
Addendums
All addendums will be sent to interested bidders a minimum of 3 days prior to the
bid opening via email
Any changes in the finalized work write-up or specifications must be agreed upon in
writing and signed by both the Homeowner and the HRPC before they become
effective
No change orders will be approved or paid if the work was completed prior to signed
approval by the HRPC. Change orders shall not exceed 10% of the total bid price
unless the additional work was requested by the HRPC. No side agreements
between the Contractor and Homeowner will be allowed
Codes and Standard Specifications
The contractor is responsible for knowledge of the city's building codes All work
must conform to Apache Junction Building Codes and/or meet approved Uniform
Building Codes unless otherwise specified in writing. The property standards that
must be achieved as a result of assisted rehabilitation are established by the city's
building codes, the Federal Housing Quality Standards and the Arizona Department
of Housing's Housing Rehabilitation Standards, the Owner Occupied Housing
Rehabilitation Weatherization Standards, and the City of Apache Junction Housing
Rehabilitation Program C�Dnstruction Guidelines
The city's Energy Efficiency requirements incorporate the following standards:
BPI/BA Standards, IECC 2009, ASHRAE 62.2-2010, Energy Star, and Standardized
Work Specification
Privilege Tax License
The contractor and all subcontractors must have an Apache Junction City privilege
tax license prior to beginning work after being awarded a contract for services
Subcontractors must be named on the Contractor Bid Proposal.
Bid Award
Bid awards are done by the homeowner; however the City of Apache Junction's
Housing Rehabilitation Program will recommend the lowest most responsible and
responsive bidder The City of Apache Junction's Housing Rehabilitation Program
reserves the right to reject any and/or all bids for reasons included but not limited to
the following.
City of Apache Junction Housing Pehahiiitation Progran-) Guidelines, page 19 of 29
... AM.
1. The contractor is not licensed or his license is suspended or has been barred
from federal procurement or no procurement programs
2. The contractor is not able to proceed with the project in a timely manner, has
failed to complete past projects in a timely or workmanlike manner or has
failed to respond appropriately to requests for warranty service
3. The bid submitted is more than 15% above or below the estimate and may
not be able to complete the project for this amount.
4 The Contractor has failed to provide lien waivers as required below or has
had mechanic's liens filed by suppliers or subcontractors on past projects
5 Bidding forms are improperly filled out, incomplete or not using the correct
bidding forms provided.
Owner Bid Refection
The owner may reject any or all bids without cause subject to the following
provisions:
1. The owner may choose to reject the lowest bid and select a contractor other
than the lowest bidder if the owner is willing to provide from his own funds an
amount equal to the difference between the low bid and the selected bid.
2 The owner may reject all bids at any time up to three working days after the
contract is closed
The contract will be between the homeowner and the contractor However the
contractor and homeowner may not discuss the award or non-award of the project
until the city has completed the required procurement process. The city will serve only
as an administrator/financier to the contract The contractor must be a licensed
contractor in the State of Arizona, hold a city business license, be in good standing
with the Registrar of Contractors, and not appear on the excluded parties listing thus
.� shall have a DUNS and CCR number.
Delays in Awarding Contract
Generally the contract will be closed and the work will begin within thirty (30) days
of the date of bid submission If thirty days has passed and no contract is signed,
the Contractor may honor the original bid or withdraw the bid. If the Contractor
chooses to withdraw the bid, the project will be offered to the next qualified low bid
or a new bid process will begin The HRPC reserves the right to negotiate any bid.
Subcontractors
All subcontractors shall be named within the proposal submittal including their ROC
numbers. Upon award, subcontractors are required to submit certifications, hold a
current City Privilege Tax License and a valid contractor license from the State of
Arizona. Additionally, any subcontractor participating in the rehabilitation program
Ci(v of Apache JL1t,ci1on Housing Pehabdifabon Program Gwdellnes pace 20 of 29
must be verified as being eligible to receive federal funds, thus a DUNS and CCR
number are required.
Notice to Proceed
The Notice to Proceed issued by the City of Apache Junction's HRPC will identify
the start date. All construction must begin within seven (7) days
A pre-construction conference will be held between the homeowner, the contractor
and HRPC to discuss work items, furniture moving, and other questions in need of
clarification. All contractors will be required to secure a building permit from the city
and post it at the site
Quality of Work Provided
General Contractors, sub-contractors and their employees qualified to perform the
installations for which they are responsible shall perform all work in a quality
workmanlike manner ThE:job site is considered a federal location and must, at all
times, be free from an individual chemical use. All moved or effected equipment
shall be returned to a completely functional nature The Contractor will make
provisions for the fact that homeowners will, at all times, occupy this dwelling during
the course of construction and need basic services at day's end
Permits
The permit application for the project is prepared and submitted by the Contractor
The Building Permit will be issued upon receipt of payment from the Contractor. The
permit must be picked up before beginning any work on the property. Follow the
Building Department's procedures for scheduling inspections. The Contractor is
responsible for all necessary inspections of the property.
Clean-up
The job site should be thoroughly cleaned during and upon completion of the
project. All construction debris of every sort should be removed along with other
debris that may have beers on the property or collected during the work. Compact,
grade and rake any area disturbed by construction for proper drainage.
Construction debris is to be hauled to the landfill and disposed of in accordance with
all local ordinances. Under no condition is debris to be left for city pick-up.
Timely Manner
Work should proceed in diligent manner after start-up Progress inspections will be
made almost daily While material or subcontractor delays are sometimes
City of Apache Jwicbon Hous;ng Rehabditabon Program Guidelines c: 21 of 29
unavoidable, extended periods without progress or repeated unnecessary delays in
completing a project may constitute grounds for rejecting future bids The
contractor is expected to complete the job within the timeframe indicated in the
contract There is a two-year warranty on workmanship and materials
Owner Selections
The homeowner is allowed to select the following items:
1. One interior paint color
2 Exterior wall and trim color
3 Counter top color
4 One carpet color
5 One floor the (grout to be sealed)
The contractor must supply the homeowner with a minimum of three (3) color
samples
Payment
No payments shall be made to the contractors without written approval from the
HRPC and the homeowner, with the exception of disputed discrepancies which may
be resolved and paid with the signature of the HRPC. The HRPC will monitor all
rehabilitation work during construction If progress payments are called for in the
contract, the homeowner and the HRPC will make an inspection of the work outlined
in the work write-up scheduled for completion before a progress payment will be
made.
A contractor may request a 50% draw when one-half of the contracted work is
completed and a 40% draw when 90% if the work is completed. The city will hold
10% retention for up to thirty (30) calendar days at the end of the contract to cover
closeout contingencies The contractor must submit all lien waivers,
warranties/guarantees prior to the release of the 10% retention
Warranties and Owners Manuals
The contractor shall warrant all work for a period of two (2) years or more, exclusive
of the manufacturer's warranty, from the date on the approval of the final inspection,
which will be signed by the homeowner and the HRPC. Major systems or items
necessary to make the property meet code should be analyzed on the basis of a
three year life expectancy Major systems include: roofs, heating, cooling, plumbing,
water heaters, and electrical components When included in a project, warranties for
all items such a new appliances/hot water heaters shall be given to the HRPC by
the contractor(s). All warranties will be provided to the homeowner
city of,,pache Junctror, dousing Pei ab1litalron Program Guidelines. pace 22of29
Final Inspection
After the contractor has passed all permit inspections from the Building Department,
please inform the HRPC so that a final inspection can be scheduled Approval of the
work by the city building inspector does not constitute acceptance of the
workmanship by the Housing Rehabilitation Program or the homeowner.
The HRPC will schedule for a post audit to be completed. All items identified by the
BPI certified technician shall pass the inspection. If the improvements are not
completed accordingly, the, technician will identify the deficiency and the contractor
will be required to make the necessary improvements to achieve the identified
energy efficiency goals No change order may be requested to cover the costs of re-
doing any work previously recommended
Upon the homeowner's acceptance of the work completed, final payment will be
issued after final invoice and lien waiver are presented to the HRPC Final payment
can be expected within 30 days of work completion and successful final inspection
In the event of any dispute between the owner and the contractor concerning the
completion of rehabilitation, the HRPC will work with both parties to negotiate a
satisfactory solution. If a solution cannot be arrived at, a grievance can be filed as
outlined below.
HOUSING MAINTENANCE AND HOMEOWNERSHIP EDUCATION
In addition to warranty brochures, the HRPC and Contractor shall conduct training in
the home to instruct the homeowners on the new equipment, appliances and general
housing maintenance counseling on items that had been installed in the home. The
city will provide a home maintenance document.
The city's housing program also provides a Housing Programs and Services
Newsletter on a quarterly basis for all housing rehabilitation program recipients --
Homeownership Counseling is currently provided by the Arizona Department of
Housing and/or their designee.
ENERGY EFFICIENCY GUIDELINES
The HRPC will write the laid specifications to include energy efficiency measures as
required by the Arizona Department of Housing Owner Occupied Housing
Rehabilitation WeatheriZation Standards. Detailed information pertaining to the
Energy Efficiency requirements can be found in the city's Housing Rehabilitation
Program Construction Guidelines.
The City's requirements incorporate the following standards- BPI/BA Standards,
IECC 2009, ASHRAE 62.2-2010, Energy Star, and Standardized Work Specification.
City of Apache Juncfron housing Rehabilitation Program Gutdehnes, rage 23 of 29
LEAD BASED PAINT REQUIREMENTS/ PRE-1978 HOUSING
On September 15, 1999, HUD published a Final Rule at 24 CFR Part 35 to implement
new regulations with regard to lead-based paint in compliance with the Residential
Lead-Based Paint Hazard Reduction Act of 1992. This Rule was effective on
September 15, 2000. ADOH received permission from HUD to defer implementation
of this Rule until January 10, 2002.
As of January 10, 2002, any CDBG or HOME awards made by the ADOH after
January 10, 2002, and used to fund housing rehabilitation projects are required to
comply with these lead-based paint requirements However, CDBG or HOME awards
made by the ADOH before January 10, 2002, and used to fund housing rehabilitation
projects, whether or not the actual projects have been started, will not be subject to
these requirements In order to comply and implement these lead-based paint
requirements, the HRP shall use as guidance the ADOH Housing Bulletin #1 issued
by the Office of Housing Development ("OHD") on December, 2001 The HRP shall
specifically adhere to the evaluation, disclosure, work requirements, and clearance
procedures contained in this Bulletin. Any interim control or abatement procedures
of lead-based paint hazards as prescribed by HUD requirements shall be included in
the scope of work The HRP shall also attempt to obtain lead-based paint general
liability insurance for lead-based paint hazards and encourage contractors to secure
lead-based paint hazard liability insurance
The HRPC will provide the homeowner with the EPA/HUD Pamphlet "Protect Your
Family from Lead in Your Home" The HRPC shall also provide the homeowner with
the Lead Based Paint Notification for the homeowner's review and signature The
HRPC shall specifically review the notification form with the homeowner and make
every effort to ensure the homeowner is aware of the hazards and ways to avoid lead
based paint poisoning The executed notification is retained in the
homeowner/client's file and a copy is provided to the client If lead based paint
hazards are identified and treated by a certified lead based paint risk Assessment
Company, the HRPC shall meet with the recipient and discuss the findings contained
in a Risk Assessment Report. The recipient shall also sign off on the report to reflect
that the findings contained in the Risk Assessment Report were explained and
discuss with the recipient. The Risk Assessment Report shall then become a part of
the recipient's file
All brochures regarding lead-based paint hazards are available in alternate format for
non-English Spanish speaking persons upon request
CONFLICTS OF INTEREST
1) Any person who is an employee, agent, consultant, officer, or elected or
appointed official of the City may not obtain a personal or financial interest or
benefit from this activity, nor may they have an interest whatsoever, however
remote, in a contract, subcontract or proceeds either for themselves, their
Cifv c(Apache Junci,on Nousvr,g Rehabi!itabon Progran-i Guidelines pece 24 of 29
.•.
family or business ties during their tenure, or for one year thereafter
2) No contract will be awarded to a contractor who is related, or whose employee
is related to the applicant by blood or marriage
Upon written request to the HRP in care of the Apache Junction Development
Services Department, the Development Services Director, or his/her designee, will
determine if a conflict exists.
COMPLAINT AND GRIEVANCE PROCEDURE
Applicants, Program participants, or contractors may initiate a complaint by
submitting concerns in writing to the City of Apache Junction Development Services
Director, or his/her designee, at 300 East Superstition Boulevard, Apache Junction,
Arizona 85119
The Development Services Director, or his/her designee, is responsible for receiving,
reviewing, and responding to all complaints including prequalification of applicant or
contractor qualification. The City must issue a written response to any complaint
within ten (10) working days of receipt
If unsatisfactory to the complainant, a written appeal of the City's response shall be
filed within ten (10) working days of receipt of the City's response Appeals shall be
made to the City Manager, by sending such appeal to 300 East Superstition
Boulevard, Apache Junction, Arizona, 85119 Attn: City Manager The City Manager
shall be the final administrative decision maker Further judicial appeals shall be in
accordance with A.R.S. Title 12, 12-901
Assistance from the City in preparing a grievance is available at no charge if needed
due to either a disability or language limitation. Assistance will be provided through
the Development Services Department at(480) 474-5090 TDD (480) 983-0095; FAX
(480)474-5102 or 300 East Superstition Boulevard, Apache Junction,Arizona 85119.
Additionally,the City of Apache Junction has adopted an internal complaint procedure
providing for prompt and equitable resolution of complaints alleging any action
prohibited by the federal regulations implementing Title 11 of the Americans with
Disabilities Act ("ADA") and Title VI of the Civil Rights Act of 1964, as amended Title
II states, to part that"no otherwise qualified disabled individual shall, solely by reason
of disability, be excluded from the participation in, be denied the benefits of, or be
subjected to discrimination" in programs or activities sponsored by the city
All ADA and Civil Rights complaints made against the city, its employees,
representatives, and contractors relating to facilities, programs, services and
projects, shall be required to adhere to this process in order to file a grievance.
City of Apache Junction Housing r;ehabihiabon Program Guidelines page 25of29
All equal employment opportunity complaints shall be filed with the Human
Resources Department and may not be handled in the same manner as ADA and
Civil Rights complaints under Titles II and VI.
Civil rights complaints are valid when the legal basis for the complaint is due to
discrimination on the basis of race, color, national origin, religion, sex, disability, or
familial status
Depending on the complaint, the following persons shall be responsible for
determining a resolution
Complaints filed against the city whether a city program, service or project,
will be reviewed by the ADA and Civil Rights Coordinator ("ACRC") and
forwarded to any applicable state and/or federal agency as required under
their guidelines.
Additionally, the Arizona Department of Transportation ("ADOT) Civil Rights
Office will be provided all civil rights complaints regardless of the nature of
the complaint relevant to a project funded in whole or in part by ADOT
funding ADOT will then follow their procedures to determine if the complaint
is relevant to their area of jurisdiction. Subsequently, the ACRC and/or ADOT
will make a determination and resolve the complaint within 60 calendar days
Complaints filed against a contractor hired by the city shall be reviewed by
the ACRC and a copy shall be provided to ADOT within 60 days. The
complaint will be reviewed, investigated and resolved within 60 calendar
days.
Complaints should be addressed to: Bryant Powell, ADA and Civil Rights
Coordinator, 300 East Superstition Blvd., Apache Junction, Arizona, 85119, (480)
474-5066
1. A complaint shall be filed in writing or digitally. It must contain the name and
address of the complainant, and describe the nature and the date of the
alleged violation of the regulations The complaint must be signed by the
complainant or by someone authorized to do so on his or her behalf. A
complaint form is available on-line at www aicity net/ada or by asking any city
staff member.
2 A complaint must be made within 30 calendar days after the complainant
becomes aware of the alleged violation
3. The ACRC will call or meet with the complainant no later than 8 city working
days after receipt of the complaint An investigation, if needed or if
appropriate, may follow the meeting The investigation shall be conducted by
the ACRC. Any investigation should be informal but thorough, affording all
Cray c,f Ahacl e dunciion Housing Rehabilitation Program Guidelines, i� ce 26 of 29
interested persons an opportunity to submit information relevant to the
complaint
4. The ACRC shall issue, as soon as possible, but not later than 30 calendar
days after the complaint is received, a letter or email acknowledging the
complaint, which includes a description of the resolution to the complaint.
The decision of the ACRC shall be binding and final subject only to an appeal
pursuant to A R S 12-901, et. seq.
5. The ACRC shall retain all complaint records and associated documents
pursuant to the city s record retention requirements, and shall dispose of
them in accordancE! with such policy.
6 The right of a person to file a complaint under this procedure shall not affect
the complainant's right to pursue other remedies such as filing of a complaint
with the responsiblE; federal or state agency Use of this grievance procedure
shall not extend the time for filing any complaint with the responsible federal
or state department or agency.
MARKETING
The Housing Rehabilitation Program will be marketed using the following media:
Brochures, Flyers, City of Apache Junction Website, the Housing Programs and
Services Newsletter, The Citizen (Parks & Recreation Publication), City of Apache
Junction's Cable Channel, the city's grants blog
www apacheiunctiongrants wordpress.com, and local newspapers including AJ
News and the Independent.
Direct marketing to neighborhoods may also be conducted by mailing a postcard to
residents within a targeted area notifying them of the city's programs.
Distribution of marketing materials will be through a local network of human/social
services agencies and at general posting locations throughout the city which include
but are not limited to the outlets below
Human/Social Service AgEncies
TRIAD Neighborhood Watch Groups
Pinal County Housing Pinal County Volunteer Center
CAAFA CAAG RSVP Program
ABIL CAHRA
Salvation Army Area HOA's
Apache Junction Food Bank Boy's and Girl's Club
Project Help HOPE Women's Center
Apache Junction Senior Center Apache Junction School District
Apache Junction Community Development Corporation
Apache Junction Chamber of Commerce
Cily of Apache.junction Housirg RehabiNialion Program, Guidehnes, page 27 of 29
Central Arizona Council on Development Disabilities
City of Apache Junction Victim Assistance (Police Department)
City of Apache Junction Victim Advocate (City Attorney's Office)
Superstition Mountain Mental Health Center
Postinq Locations
City Hall Library
Parks and Recreation Multigenerational Center
The City will make every effort to accommodate persons with disabilities and non-
English speaking persons. See the section entitled Assistance to Applicants for
additional information
STAFFING AND ADMINISTRATIVE REVIEW
All administrative and supervisory work will be done by city staff Procedures to
protect applicants, HRP participants, and contractors are outlined in the sections
entitled Complaint and Grievance Procedure and Non-Discrimination
The City of Apache Junction's HRPC will be responsible for the following application
intake; income verification; case management, contractor procurement,
change order approvals, and final inspection
The HRPC can be reached at 300 East Superstition, Apache Junction, Arizona
85119. The HRPC can also be contacted at (480) 474-5090 or TDD (480) 983-0095.
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NON DISCRIMINATION
The City of Apache Junction, or any of its sub recipients, do not discriminate in any
activity on the basis of race, color, religion, sex, disability, familial status, or national
origin
The City of Apache Junction is an Equal Opportunity Employer, Minority Contractors
participation is encouraged DBE/MBE/WBE A copy of the City's Equal Employment
Opportunity Policy is available on-line at http://www.aicity net/index aspx?nid=556 .
Cdy of Apache Junction Housing Rehabildafion Prograri Guidelines, pace 28 of 29
ASSISTANCE TO APPLICANTS
Should an individual need assistance in preparation of an application, assistance
will be provided, at no charge, through the Development Services Department. The
Department can be reached at 300 East Superstition, Apache Junction, Arizona
85119. Assistance can also be requested at (480) 474-5090 or TDD (480) 983-
0095. Applicants may request assistance because of a 1) physical/mental/
emotional disability or 2) limited ability to speak/read English.
FAIR LABOR STANDARDS
The provisions of the FLSA are not applicable to the rehabilitation of single family
homes under this program.
APPLICABLE DOCUMENTS
The city's HRP uses guidance from the following sources of information pertaining to
the administration of the HRP:
1) Arizona Department of Housing Owner Occupied Housing Rehabilitation
Standards
2) United States Department of Housing and Urban Development Housing
Quality Standards
3) United States Environmental Protection Agency Information regarding
Lead Based Paint.
4) Arizona Department of Housing, State Housing Fund Program Summary
and Application Guidelines
5) Arizona Department of Housing Community Development Block Grant
Handbooks
6) Arizona Department of Housing Owner Occupied Housing Rehabilitation
Weatherization Standards
7) City of Apache Junction City Ordinances and adopted Building Codes.
8) City of Apache Junction Housing Rehabilitation Program Construction --
Guidelines.
CHANGES TO HOUSING REHABILITATION PROGRAM GUIDELINES
The Housing Rehabilitation Program Guidelines are generally adopted with revisions
annually, however should an emergency change within the Housing Rehabilitation
Guidelines as adopted by the city council be required throughout the program year,
the Mayor shall submit a letter in writing to the Arizona Department of Housing ten
(10) days prior to the change coming into effect.
Crty of Apache Juncticn Hcusirg Rehabilitation Progiain Guiaelmes, pace 29 of 29
...
FORMS
A complete packet of forms utilized by the City's Housing Rehabilitation Program are
available upon request. Below Is the listing of those forms.
Application which includes Authorization for Work Write Up including cost estimates
Release of Info,Verification of Employment, Owner Acceptance of Work Write Up
Affidavit of Non-Income,Declaration of Contractor Participation Statement
Citizenship Contract between Contractor and Owner
Income Verification Determination Sheet Owner's Color Preference Verification
Agreement which includes Certification of Change Orders
Principal Residence,Federal Assistance Final Acceptance of Work Completed
Notice,Complaint and Grievance Procedure, Final Invoice and Waiver of Lien
Disclaimer Truth In Lending Form,Right of Rescission, Promissory Note,
Development Services Due Diligence Deed of Trust,Release of Lien
Gty of Apache.fulicf+on Housirg Rehabilitation Program Guidelines, page 30 of 29
City of Apache Junction, Arizona 300 E Superstition
Boulevard
i
Agenda Item Cover Sheet Apache Junction AZ 85119
Agenda Item No 6
File ID: 14-622
Sponsor: Bryant Powell Agenda Date: 1/5/2015
Index: In Control: City Council Work Session
Discussion on Paws and Claws Care Center policy regarding adoption of animals at events
Discussion
Attachments-
City of Apache Junction,Arizona Page 1 Printed on 12/29/2014