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HomeMy WebLinkAboutRES 89-33RESOLUTION NO.89-33 A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,ARIZONA,ADOPTING A HOUSING REHABILITATION PLAN AND GUIDELINES AS A RESULT OF HOUSING ACTIVITIES FUNDED IN WHOLE OR IN PART WITH COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS WHEREAS,the City of Apache Junction,Arizona has adopted Resolution Numbers 87-22,and 88-32,which identified community development and housing needs and activities to be undertaken to meet such needs,and WHEREAS,the State of Arizona,Department of Commerce,requires program guidelines and a strategy,recordkeeping requirements and resource materials to implement such a plan, NOW,THEREFORE,BE IT RESOLVED,that the Mayor and City Council of the City of Apache Junction,Arizona,hereby adopt a strategy to address the housing needs of the City of Apache Junction,Arizona,including the needs of the low and moderate income persons.This strategy will hereby be known as the: HOUSING REHABILITATION PROGRAM PLAN AND GUIDELINES PASSED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,ARIZONA,THIS 21ST DAY OF NOVEMBER ,1989. SIGNED AND ATTESTED TO THIS 27TH DAY OF NOVEMBER ,1989. ATTEST: /awe, Kathleen Connelly City Clerk PPROVED AS TO FORM: LAILAL1 Dfivikr F." A 1 e x‘dricre r City 'Attorney RESOLUTION NO.89-33 PAGE ONE OF ONE efineth Bluntschly Mayor CITY OF APACHE JUNCTION,ARIZONA HOUSING REHABILITATION PROGRAM PLAN AND GUIDELINES PROGRAM PURPOSE (GOALS) 1.Eliminate health and safety hazards in older homes. 2.Benefit very low and low income residents. 3.Improve neighborhoods and encourage stability. TARGET AREA The City of Apache Junction's Housing Rehabilitation program for contract numbers 1101-87A,1002-87A,066-88A will not have a specific target area. It will be open to all eligible permanent residents who live within the incorporated boundaries of the City of Apache Junction,excluding those who live within designated ineligible areas or structures. NOTICE OF FUNDS AVAILABLE The Housing Rehabilitation Program will be marketed to homeowners of the City of Apache Junction through the local newspaper,City -generated bi-monthly newsletter,and outreach programs of the local social service agencies.A brochure will be available for mailings and general distribution. ELIGIBILITY REQUIREMENTS The homeowner/property to be rehabilitated must meet the following criteria: * Located within the incorporated boundaries of the City of Apache Junction. * The structure must be suitable for rehabilitation under the time and monetary constraints of this program. * Owned and occupied by a permanent resident. * Have an income that falls within Section 8 income limits for Lower Income and Very Low Income families (see income guidelines). *Have assets that total no more than $10,000 (e.g.,cash,savings,stocks, bonds,money market accounts,IRAs,etc.).This is exclusive of the home they live in,two vehicles,and "normal"personal property. * The current owner,generally,must have lived in the structure for at least one year prior to program entry. * Single person households must generally meet either the elderly or handicapped criteria. Rehab Program Page 2 * Owner -occupied duplexes are to be considered on a case -by -case basis. * Owner is to complete any construction project previously underway prior to the City undertaking further work on the property. * Mobile homes,homes of historic value,properties in nonconforming zoning,properties located in floodplains,properties located within 1000 feet of an explosive/flammable operation,and homeowners unwilling to work to meet the intent of the program,are not eligible for general rehabilitation under this program.Emergency grants may be considered to eliminate hazards to health and safety. *Note...Properties that are classified "nonconforming"are not generally eligible for rehabilitation.However,if during the programs implementation no eligible properties are waiting to be rehabilitated,"nonconforming"properties that meet all other eligibility criteria may be considered. ALLOWABLE WORK ITEMS 1.Any improvement required to bring the structure up to Section 8 Existing Housing Quality Standards and/or the City of Apache Junction Building Code. 2.Any incipient code deficiency that,in the opinion of the building inspector,needs to be addressed. 3.Exterior painting,including all Lead Based Paint abatement. 4.Energy conservation measures. 5.Extermination and pest control. 6.Handicapped accessibility. 7.High impact exterior improvements,as approved by the program administrator. PROPERTY STANDARDS The property standards that must be achieved as a result of assisted rehabilitation are established by Section 8 Existing Housing Quality Standards and the City of Apache Junction Building Code. REHABILITATION ASSISTANCE PLANS MINOR REHABILITATION GRANT (MRG) A grant to eliminate code and incipient code violations that constitute a threat to life,safety or health.The maximum financial assistance allowed though this grant is $5000 per structure.IF MORE THAN $5000 IN ASSISTANCE IS REQUIRED TO BRING THE STRUCTURE INTO COMPLIANCE,THEN THE GRANT IS CONVERTED TO A DEFERRED LOAN. Rehab Program Page 3 EMERGENCY GRANTS (EG) A grant to eliminate an eminent threat to life,safety or health.The maximum allowed on an emergency grant is $1500 per unit.Exceptions may be approved by the Administrator.The grant may address no more than two emergency conditions,unless approved by the Administrator,due to some extenuating circumstances.A structure may be eligible for an (EG)even though i t cannot meet structural integrity requirements. DEFERRED LOANS A forgivable,non -interest bearing loan secured by a lien and promissory note.The note shall be forgiven at a rate of 10% per year for ten years as long as the dwelling is occupied by the owner or family member.The unforgiven balance of the loan shall become due and payable upon the sale of the property.The maximum financial assistance allowed on a Deferred Loan is $20,000. RECIPIENT APPLICATION PROCEDURES When the homeowner thinks she/he meets the required criteria,an application brief is mailed to,or picked up by,the applicant.Upon receipt of the completed application,the City will date and time stamp it.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. After the application brief has been taken and the information verified, the City Building inspector and/or Housing Rehabilitation Specialist will make an inspection of the property and prepare a work write-up and cost estimates.The Housing Specialist Rehabilitation and homeowner will thoroughly discuss the work to be done.The homeowner will then be given instruction on how to secure bids. BIDDING PROCEDURES Homeowners will be required to select two (or more)licensed,bonded (*), and insured contractors to bid on the project(s)as outlined by the scope of work.At the request of the homeowner,a list of qualified contractors may be supplied by the City to the homeowner,for their consideration. Homeowners will award the bid to the lowest responsive bidder,unless the homeowner opts to pay the difference between the low bid price and the selected contractor's price.The contract will be between the homeowner and contractor.The City of Apache Junction will serve as a third party to the contract. *(bonded only when specifically required) A pre -construction conference may be held between the homeowner,the Housing Rehabilitation Specialist,and the contractor to discuss work items,furniture moving,and other questions that might need clarification. All contractors will be required to secure a building permit from the City of Apache Junction and post it at the site. Rehab Program Page 4 CHANGE ORDERS All change orders to the bid specification require the earliest prompt signature of both the owner and the designated City of Apache Junction representative,in order to become valid. INSPECTIONS AND MONITORING The Housing Rehabilitation Specialist will monitor all rehabilitation work during construction.If progress payments are called for in the contract,the homeowner and Housing Rehabilitation Specialist will make an inspection of the work outlined for completion before a progress payment will be made. ACCEPTANCE OF WORK In the event of any dispute between the owner and the contractor concerning the completion of rehabilitation,the designated City of Apache Junction representative will work with both parties to negotiate a satisfactory solution.If a solution cannot be found,the City of Apache Junction shall be the final authority regarding when the job has been satisfactorily completed. PAYMENTS AND WARRANTIES If the contract calls for progress payments,a contractor may request a 50% draw when one-half of the contracted work is completed and a 40% draw when 90%of the work is completed.The City of Apache Junction will hold 10% retention for thirty (30)days at the end of the contract to cover close- out contingencies.The contractor shall warranty all work for a period of one year from the date on the Certificate of Release which will be signed by the homeowner and Housing Rehabilitation Specialist.The contractor must submit all lien waivers prior to the 10%retention. Applicants may participate in a grant/loan program only once within a ten-year time period commencing with the date on the Certificate of Release. CONFLICT OF INTEREST Any person who is an employee,agent,consultant,officer,or elected official or appointed official of the City of Apache Junction or sub- recipients using Department of Commerce Block Grant funds may not obtain a personal or financial interest or benefit from this activity.Nor can they have an interest in a contract,subcontract or proceeds either for themselves,their family or business ties during their tenure;or for one year thereafter.Upon written request to the Housing Rehabilitation Program,the Housing and Grants Specialist will determine if a conflict exists.