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HomeMy WebLinkAboutRES 91-05RESOLUTION NO.91-05 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 No. 90-21, which identifies 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 (Revised 1990/91) PASSED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA,THIS 5TH DAY OF FEBRUARY ,1991. SIGNED AND ATTESTED TO THIS 6TH DAY OF ATTEST: KATHLEEN CONNELLY City Clerk APPROVED AS TO FORM: AVTD—F.'ALEXA City\Attorney FEBRUARY _ KENNETH BLUNTS Mayor ,1991. CITY OF APACHE JUNCTION, ARIZONA HOUSING REHABILITATION PROGRAM PLAN AND GUIDELINES Revised 1990/91 PROGRAM PURPOSE (GOALS) 1.Eliminate health and safety hazards in homes. 2.Benefit very low and moderate income residents. 3.Improve neighborhoods and encourage stability. PROGRAM DESIGN The main focus o f the Housing Rehabilitation Program is to increase the life and improve the livability of homes owned by low (moderate)and very low income families,by correcting code violations and addressing accumulated deferred home maintenance projects. 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. 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 feasible for rehabilitation under the time and monetary constraints of this program. * Owned and occupied by a full-time permanent resident. * Have a verifiable income that falls within Section 8 income limits for lower (moderate) and very low income families (see income guidelines, updated annually). * Have assets that total no more than $25,000 (e.g.cash stocks, bonds, money market accounts, IRA, etc.This is exclusive of the home they live in, two vehicles, and "normal" personal property. * The current owner must have occupied the structure for at least one year prior to program entry. * Single person households must meet either the elderly or handicapped criteria. * Owner is to complete any recent construction project underway prior to the City's approval of rehabilitation assistance. * Mobile homes, homes of historic value, properties in noncon- forming zoning, properties located in floodplains, properties located within 1000 feet of a explosive/flammable operation, and homeowners unwilling to follow the City of Apache Junction Program Guidelines, are not eligible for general rehabilitation under this program. *Note...Properties that are classified "nonconforming" are not generally eligible for rehabilitation.However,if during the program's implementation no 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 Technician or Building Official, need 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, including cost of removing junk, trash, weeds and debris. PROPERTY STANDARDS The property standards that must be achieved as a result of assisted rehabilitation are established by Section 8 Existing Quality Standards and/or the City of Apache Junction Building Code. REHABILITATION ASSISTANCE PLANS MINOR REHABILITATION GRANT (PIRG) A grant to eliminate code and incipient code violations that constitute a threat to life, safety, or health as determined by the Technician or Building Inspector.The maximum allowable financial assistance allowed through this instrument is $5,000 per structure. If more than $5,000 in assistance in required to bring the structure into compliance,then the grant is converted to a deferred payment loan. EMERGENCY GRANTS (EG) A grant to eliminate an eminent threat to life, safety or health. The maximum assistance available to address an emergency is $1,500 per structure.The grant may address no more than two emergency conditions,unless approved by the Director of Development Services, due to some extenuating circumstances.A structure may be eligible for an (EG) even though it may not meet structural integrity requirements. DEFERRED LOANS A forgivable, non -interest bearing loan secured by a lien and promissory note. Ten percent of the total assistance provided will be forgiven on the anniversary date of the execution of the Recording of the loan instruments, 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. 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 stamp the application "received".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. After the application brief has been taken and the information verified,the City Building Inspector and\or the Housing Rehabilitation Technician will make an inspection of the property and prepare a work write-up and cost estimate.The Housing Rehabilitation Technician and homeowner will thoroughly discuss the work to be done.The homeowner will then be given instructions on how to secure bids. BIDDING PROCEDURES Homeowners will be required to solicit bids from two or more licensed contractors for the work write-up provided to them by the City.A list of pre-screen contractors will be available to the homeowner.Contractors not on the pre-screen list are eligible for bid consideration.If the contractor has not been pre-screened and is the low bidder, they must be qualified before a contract will be awarded to them. Additionally, any contractor participating in the Housing Rehabilitation Program must be verified by the Arizona Department of Commerce as being eligible to receive federal funds. Homeowners will be instructed to select the lowest responsive bid price.However, the may homeowner opt to pay the price difference between the low bid and the selected contractors bid price.The contract will be between the homeowner and the contractor.The City of Apache Junction will serve only a an administrator/financier to the contract. A pre -construction conference will be held between the homeowner, the contractor and Housing Rehabilitation Technician to discuss work items,furniture moving,and other question in need of clarification. All contractors will be required to secure a building permit for the City of Apache Junction and post it at the site. CHANGE ORDERS All change orders to the bid specification require the earliest prompt signatures of the owner and the designated City of Apache Junction representative, in order to become valid. INSPECTIONS AND MONITORING The Housing Rehabilitation Technician will monitor all rehabilitation work during construction.If progress payments are called for in the contract,the homeowner and Housing Rehabilitation Technician will make an inspection of the work outlined in the work write-up scheduled for completion before a progress payment will be made.The Director of Development Services signature will be required to execute any payments. ACCEPTANCE OF WORK In the event of any dispute between the owner and the contractor concerning the completion of rehabilitation, the City of Apache Junction's Housing Rehabilitation Technician will work with both parties to negotiate a satisfactory solution.If a solution can not be arrived at, the City of Apache Junction's representative (Office, Department, or Manager level) will be the final authority regarding when the job has been satisfactorily completed. PAYMENTS AND WARRANTIES No payments shall be made to the contractors without written approval from the Housing Rehabilitation Technician,and the homeowner, with the exception of disputed discrepancies which may be resolved and paid with the signature of the Housing Rehabilitation Technician and a City Representative.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 up to 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 or more, exclusive of the manufactures warranty k from the date on the approval of the finial inspection, which will be signed by the homeowner and the Housing Rehabilitation Technician.The contractor must submit all lien waivers prior to the 10% retention. CONFLICT OF INTEREST Any person who is an employee, agent, consultant, officer, or elected or appointed official of the City of Apache Junction using Arizona Department of Commerce Community Development Block Grant funds may not obtain a personal or financial interest or benefit from this activity.Nor may 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 Coordinator,will determine if a conflict exists.