Loading...
HomeMy WebLinkAboutRES 09-54RESOLUTION NO. 09-54 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 AN APPLICATION FOR A HOUSING REHABILITATION ACTIVITY. WHEREAS,the City of Apache Junction,Arizona,is desirous of undertaking 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, 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. 09-54 PAGE 1 OF 2 PASSED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, THIS 15TH DAY OF DECEMBER ,2009. SIGNED AND ATTESTED TO THIS 15TH DAY OF 2009. JOHN V INSALACO Mayor ATTEST: ( I —Ae--;tA; KATHLEEN CONNELLY City Clerk APPROVED AS TO FORM: t I \I o RICHARD J. STERN City Attorney RESOLUTION NO. 09-54 PAGE 2 OF 2 DECEMBER 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 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 3.Improve neighborhoods and encourage stability. City of Apache Junction Housing Rehabilitation Program Guidelines:page 1 of 19 TABLE OF CONTENTS Program Purpose and Goals 1 Program Design 3 Target Area 3 Eligibility Requirements 3 Property Standards 5 Allowable Work Items 5 Non -allowable Work Items 7 Rehabilitation Assistance Plans 7 Emergency Housing Repair 7 Housing Accessibility 7 Housing Rehabilitation 8 Permit Fee Fund 8 Replacement 9 Deferred Payment Loans/Liens 9 Exceptions to the Maximum Allowed 9 Loan Closing and Lien Recording Procedures 10 Recapture Period 10 Loan Servicing Policy/Subordination 10 Revolving Loan Fund/Program Income 11 Application Procedures and Acceptance 11 Third Party Income Verification 11 Work Write-up, Estimates and Specifications 12 Method for Determining After Rehab Value 12 Bidding Procedures 13 Pre -Bid Meeting 13 Pre -Construction Conference 13 Change Orders 13 Inspections and Monitoring of Construction 13 Acceptance of Work Completed, Grievances and Quality Assurance 14 Payment and Warranties 14 Housing Maintenance and Homeowner Education 14 Energy Efficiency Guidelines 15 Lead Based Paint Requirements 15 Conflict of Interest 16 Complaint and Grievance Procedures 16 Marketing 17 Staffing and Administrative Review 17 Non -Discrimination 18 Assistance to Applicants 18 Fair Labor Standards 18 Applicable Documents 18 Changes to Program Guidelines 19 Forms 19 City of Apache Junction Housing Rehabilitation Program Guidelines:page 2 of 19 PROGRAM DESIGN The main 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 and addressing accumulated deferred home maintenance projects. Funds for the program are primarily provided through the:1)Community Development Block Grant Program ("CDBG") and 2) State Housing Fund ("SHE") 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 loans; non -interest bearing loans; or interest bearing loans. 00HR assistance to homeowners in the CDBG funded portion of the City's HRP may be in the form of: grants or deferred payment loans. Unless specifically stated to the contrary, comments contained in these guidelines are applicable to both the CDBG and SHE 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/or the property to be rehabilitated must meet the following criteria: •Located within the incorporated boundaries of the City of Apache Junction. •Feasible for rehabilitation under the time and monetary constraints of this program. •Owned and occupied by a full-time permanent resident. •Applicants must have a verifiable income that falls below 80% of the area median income as indicated by the State of Arizona — State Housing Fund Program income limits for very low-, low- and moderate -income families (see income guidelines,updated annually).Income verification is valid for a period of six (6) months. Upon expiration of income verification information, City of Apache Junction Housing Rehabilitation Program Guidelines,page 3 of 19 applicants must complete and submit a new income verification package. •For all programs, specifically the SHF Program, the property owner cannot have assets that total 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 personal property necessary for daily living. •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. •Households applying for funding must 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. •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 Rehabilitation Program. •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 eligible for general 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 receive housing rehabilitation funding,however they would be eligible for emergency and housing accessibility assistance. •The rehabilitation of dwellings that are located in the 100 -year floodplain are not eligible for participation in the rehabilitation program.. City of Apache Junction Housing Rehabilitation Program Guidelines:page 4 of 19 •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 that H RP 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 held by individuals or partnerships are not eligible for this program.Mortgage payments and insurance premiums must all be current. PROPERTY STANDARDS 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. ALLOWABLE WORK ITEMS HOME guidelines require that an entire dwelling be brought up to local code; such improvements are eligible under this program. A preliminary property inspection is completed to assist with ensuring homes meet Housing Quality Standards ("HOS") and are safe, sanitary and decent. The following must be taken into consideration when determining the priority of items for inclusion in the work -write up (Scope of Work): a)The age and the physical condition of the building; b)The goal of the program (building revitalization or direct benefit); C)Funds available for rehabilitation of each unit; and d)Value of unit after rehabilitation. The following levels are utilized to determine priorities for the HRP: •Level 1:Initial inspection reports must include those items that are included in Level 1. City of Apache Junction Housing Rehabilitation Program Guidelines ;page 5 of 19 •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. •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. 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 •City of Apache Junction Housing Rehabilitation Program Guidelines,page 6 of 19 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 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. 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. REHABILITATION ASSISTANCE PLANS 1. EMERGENCY 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. 2. HOUSING ACCESSIBLITY PLAN A grant/deferred payment loan plan that assists homeowners to make residences 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 City of Apache Junction Housing Rehabilitation Program Guidelines:page 7 of 19 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. 3.HOUSING REHABILITATION PLAN A grant/deferred payment loan plan that assists homeowners to address safe, sanitary, and decent housing rehabilitation issues. Rehabilitation projects may either be major or minor Grants and DPLs 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 can not 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 loan through HOME funds, no further investment of CDBG or HOME funds can be made on the home until after the recapture period has expired.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. 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 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 ("Coordinator") 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 City of Apache Junction Housing Rehabilitation Program Guidelines,page 8 of 19 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. 5. REPLACEMENT PLAN A grant/deferred payment/low interest bearing 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. HOME funds can not be utilized in the form of a grant. When a recipient receives assistance through HOME funds, no further investment of CDBG or HOME funds can be made on the home until after the recapture period has expired. DEFERRED PAYMENT LOANS/LIENS• All forgivable, non -interest bearing, and interest bearing 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.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.Properties encumbered by mortgages held by individuals or partnerships are not eligible for this program. HOME funds cannot be used in the form of a grant. 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 City of Apache Junction Housing Rehabilitation Program Guidelines:page 9 of 19 based on the number of bedrooms nor can the after rehabilitation value exceed 95% of the FHA 203 (b)Insuring limits for single family properties. LOAN CLOSING AND LIEN RECORDING PROCEDURES The Housing Rehabilitation Program Coordinator ("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 forgivable 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 funding section of these HRGs.The City 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 forgivable 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. RECAPTURE PERIOD When a recipient elects to receive assistance in the form of a deferred or forgivable loan, the following recapture periods apply.The recaptured period is based on the amount of funds invested in the assisted unit.Recipients may elect to have a recapture period that is longer than the required period below. Amount of State Funds Invested Per Unit Recapture Period Under $15,000 5 years $15,000 to $40,000 10 years Over $40,000 15 years When a recipient receives a deferred payment loan with HOME funds, no further investment of CDBG or HOME funds can be made on the home until after the recapture period has expired. LOAN SERVICING POLICY/SUBORDINATION 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 a cash out, the City will require payment in full of the rehab 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. City of Apache Junction Housing Rehabilitation Program Guidelines,page 10 of 19 REVOLVING LOAN FUND/PROGRAM INCOME The City of Apache Junction does not currently have a revolving loan fund. Therefore the City will be tracking all forgivable loans. In the event that 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. These recaptured funds will be deposited into the Miscellaneous Grant Fund and will be tracked by the City's fiscal officer and City Manager.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. APPLICATION PROCEDURES AND ACCEPTANCE When the homeowner thinks she/he meets the required criteria, an application can be mailed, picked up or obtained from the City's website 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. If eligible, an applicant is then placed on a waiting list. Assistance is based on a first come -first served basis; at times, applicants can experience a 6-18 months waiting period for assistance. Any questions about the HRP procedures and guidelines may be addressed by contacting the HRPC in the City's Development Services Department. Upon completion of an application, an individual will be notified within 30 (thirty) calendar days of his/her eligibility for the HRP. All Housing Rehabilitation cases will be tracked by the HRPC and be reviewed biweekly by the Development Services Director, or his/her designee.Each housing rehabilitation project will have a goal to be completed within (90) calendar days of the approval of the information obtained on the application. 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. 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; City of Apache Junction Housing Rehabilitation Program Guidelines,page 11 of 19 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 Insurance, 401K, 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 at http://www.huduser.orq/datasets Income Calculator http://www.hud.qov/offices/cpd/affordablehousinq/traininq/web/calculator/calculator. cfm WORK WRITE-UPS, ESTIMATES AND SPECIFICATIONS After the application has been received,the information verified and funding is available, the City Building Inspector or his/her designee and/or the HRPC will make an inspection of the property and prepare a work write-up and cost estimate.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 Standards.The HRPC will provide a rehabilitation cost estimate based on his/her experience and in conjunction with current residential cost estimator manuals.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, which ever is more restrictive, shall govern. METHOD FOR DETERMINING AFTER REHABILITATION VALUE The FHA 203 (b) insuring limits is utilized when determining the after rehabilitation value. This value cannot exceed 95% of the provided limit and is determined by adding the full cash value and the cost of the rehabilitation. City of Apache Junction Housing Rehabilitation Program Guidelines,page 12 of 19 Updates can be found at https://entp.hud.qov/idapp/html/hicostlook.cfm. BIDDING PROCEDURES The City will require to bids from two or more licensed contractors to complete the work write-up.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 and is listed on the Registrar of Contractors website and insurance. If a 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 HRP must be verified by ADOH as being eligible to receive federal funds.Homeowners will be instructed to select the lowest responsive bid price.The homeowner may 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 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. PRE -BID MEETING 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. PRE -CONSTRUCTION CONFERENCE 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. CHANGE ORDERS All change orders to the bid specification require the earliest prompt signature of the owner and the HRPC, in order to become valid. INSPECTIONS AND MONITORING 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.The Development Services Director's, or his/her designee's, signature will be required to execute any payments. City of Apache Junction Housing Rehabilitation Program Guidelines,page 13 of 19 ACCEPTANCE OF WORK COMPLETED, GRIEVANCES AND QUALITY ASSURANCE 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, the Development Services Director or his/her designee 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 HRPC, and the homeowner,with the exception of disputed discrepancies which may be resolved and paid with the signature of the HRPC.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% 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 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.The contractor must submit all lien waivers, warranties/guarantees prior to the release of the 10% retention. 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. HOUSING MAINTENANCE AND HOMEOWNERSHIP EDUCATION In addition to warranty brochures, information will be provided to the homeowner to include but not limited to: •Energy Checklist (Salt River Project); •Energy Savers (Southwest Gas on behalf of the US Department of Energy); •Energy Savings Guide (Salt River Project); •Home Care (City of Apache Junction); •Safety Checklist (Home Safety Council); 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 counsel each homeowner in budgeting necessary to complete house payments, maintenance and upkeep. The City's Housing Program also provides a Housing Programs and Services Newsletter on a quarterly basis for all housing rehabilitation program recipients. City of Apache Junction Housing Rehabilitation Program Guidelines,page 14 of 19 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, whenever possible, which shall include:1) minimum SEER rating 14 on all high efficiency Energy Star HVAC units including programmable thermostats; 2) R-30 insulation on the roof and walls; 3) dual pane Low E Energy Star windows; 4) insulated metal frame exterior doors; 5) Low VOC paint; 6) Solar water heaters; 7) Low flow water fixtures; 8) Compact fluorescent bulbs; 9) Energy Star appliances; and 10) the mitigation of structural air leakage. The Technician will also recommend that the homeowner choose light shades for shingles and exterior paint. The HRPC will also discuss energy efficiency measures with the homeowner to ensure that the homeowner is knowledgeable in operating the appliances installed as a result of housing rehabilitation. 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 City of Apache Junction Housing Rehabilitation Program Guidelines,page 15 of 19 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. CONFLICT OF INTEREST Any person who is an employee, agent, consultant, officer, or elected or appointed official of the City using ADOH CDBG or SHF 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 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.The City must issue a written response to any complaint within seven (7) working days of receipt. If unsatisfactory, a written appeal of the City's response must be filed within seven (7) working days of receipt of the City's response. Appeals should be directed to the City Manager for resolution;correspondence should be sent to 300 East Superstition Boulevard, Apache Junction, Arizona 85119.The City Manager will act as final arbitrator in all disputes. 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. City of Apache Junction Housing Rehabilitation Program Guidelines,page 16 of 19 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,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 Pinal County Housing CAAFA ABIL Salvation Army Apache Junction Food Bank Project Help Apache Junction Senior Center Neighborhood Watch Groups Pinal County Volunteer Center CMG RSVP Program CAHRA Area HOA's Boy's and Girl's Club HOPE Women's 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) Superstition Mountain Mental Health Center Posting Locations City Hall Library Parks and Recreation Pinal County Complex 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. City of Apache Junction Housing Rehabilitation Program Guidelines,page 17 of 19 The City of Apache Junction's HRPC will be responsible for the following: application intake;income verification;case management;contractor selection; 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. The following organizational chart identifies the City's staff pertaining to the HRP. City Manager Assistant City Manager Development Svcs. Director Finance Director Li Grants Coordinator 1_ {Program Coordinator 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. 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: City of Apache Junction Housing Rehabilitation Program Guidelines,page 18 of 19 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 Department of Housing and Urban Development and 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. 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 City's Housing Rehabilitation Program are available upon request. Below is the listing of those forms. Application Project Bid Sheet with instructions Income Verification — HUD Income Calculator Contractor Participation Statement Authorization for Release of Confidential Info.Contractor Certification Employment Verification Contract between Contractor and Owner Affidavit of Non -Income Notice to Proceed FIRP Information Form including:Owner's Color Preference Verification Information Authorization Change Orders Certification of Principal Residence Certification of Work Complete Declaration of Citizenship Final Inspection Acceptance Federal Assistance Notice Final Invoice and Waiver of Lien Complaint and Grievance Procedure Truth In Lending Statement Lead Based Paint Information Memorandum of Understanding Signage and Photo Authorization Right of Rescission Disclaimer Promissory Note Work Write -Up Deed of Trust Owner Acceptance of work write up Release of Lien City of Apache Junction Housing Rehabilitation Program Guidelines,page 19 of 19