Loading...
HomeMy WebLinkAbout11252RESOLUTION NO. 11252 A RESOLUTION APPROVING AND ADOPTING ADMINISTRATIVE PROCEDURES FOR A WATER SERVICE LINE REPLACEMENT PROGRAM TO ASSIST VERY LOW INCOME OWNERS OF SINGLE FAMILY RESIDENCES WITH THE REPLACEMENT OF BROKEN WATER SERVICE LINES WHEREAS, there is a shortage in the City of Pueblo of safe, decent and sanitary housing, which is within the financial capabilities of low -and moderate - income families; and WHEREAS, the elimination of substandard housing and the provision of decent, safe and sanitary housing for low -and moderate - income families serves public and municipal purposes; and WHEREAS, it is desirable and there exists a demonstrated need to make funds available to very low income families to assist in the replacement of broken water service lines; and WHEREAS, the funds made available for the purpose of implementing and executing the terms and provisions of this Resolution principally serve public rather than private purposes. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1 _ A Water Service Line Replacement Program, as described in the program description attached hereto and incorporated herein as is set out in full (herein "Program ") is hereby approved for administration by the Department of Housing and Citizen Services and the administrative procedures specified therein are adopted for the administration of the Program. SECTION 2_ The City may, on an annual basis by appropriate legislative enactment, but without obligation to do so, make available to the Department of Housing and Citizen Services (herein "Department ") of the City funds for the purpose of implementing and executing the terms and provisions of the Program. Department may make application for other available monies for housing rehabilitation loan and grant programs and shall incorporate such grants or loans into the Program to further the objectives of the Program. SECTION 3_ This Resolution and Program shall become effective immediately upon final passage and approval. INTRODUCED March 24, 2008 ,2�s iia s� Background Paper for Proposed RESOLUTION AGENDA ITEM # 1.5 DATE: March 24, 2008 DEPARTMENT: HOUSING AND CITIZEN SERVICES I ADA RIVERA CLARK TITLE A RESOLUTION APPROVING AND ADOPTING ADMINISTRATIVE PROCEDURES FOR A WATER SERVICE LINE REPLACEMENT PROGRAM TO ASSIST VERY LOW INCOME OWNERS OF SINGLE FAMILY RESIDENCES WITH THE REPLACEMENT OF BROKEN WATER SERVICE LINES ISSUE Should the City Council approve administrative procedures for a Water Service Line Replacement Program, which will allow the Department of Housing and Citizen Services to provide needed services to very-low income homeowners. RECOMMENDATION Approve BACKGROUND In December 2007 the City Council approved CDBG funding in the amount of $15,530 for the Program. The Department receives several requests throughout the year for assistance with broken water service lines from very low income homeowners. The Department is currently able to assist those individuals able to make monthly payments on a low- interest loan; however, there are many individuals with no ability to take on debt, based on their limited resources. We routinely turn these individuals down. The approval of this Program will allow us to serve on a limited basis. the aforementioned. The Program will be on a "first -come, first - serve" basis and individuals will need to be referred by the Board of Water Works. Individuals will need to meet the HUD definition of very low income. At present, a family of four making under $24,250 is considered very low income. The funds will be provided as a grant, which is fully repayable if the property is sold or transferred prior to a five -year period. The latter will be enforced through a promissory note and deed of trust. At no time will the amount of grant funding exceed $3,000. FINANCIAL IMPACT The funds are appropriated and available in CD0815. CITY OF PUEBLO WATER SERVICE LINE REPLACEMENT PROGRAM (the "Program ") INTRODUCTION The City of Pueblo, Colorado, has incorporated into its U. S. Department of Housing and Urban Development (HUD) required Consolidated Plan a list of objectives and projected use of funds for the Community Development Block Grant (CDBG) Funds. Included in the Consolidated Plan is a component for light rehabilitation and emergency repairs citywide. The objectives to provide water line assistance to very -low income, single - family, homeowner residents of the City of Pueblo is two fold: Water service is required by the housing code and is vital to the function of a home. The urgency of a water line break combined with the unexpected cost of replacement can far exceed the means of very-low income homeowners. The income of these homeowners and the lack of disposable income can preclude them from using banks or other traditional financing methods causing the homeowners to make rash financial decisions or even to abandon the home. Throughout Pueblo, and especially in older neighborhoods, homes without water service quickly become a blight to the surrounding neighborhood. Second, the ability to act quickly will reduce property loss and protect the City's own assets. Ruptured water lines can drastically impact the City's infrastructure requiring large sections of roads to be re- paved, settlement of sidewalk, curb and gutter, and compromised road base can produce additional stress on the main and other utilities located in proximity. CDBG funds are provided for such purposes by HUD and are governed by Federal regulations and requirements as issued by HUD and other Federal agencies. The City of Pueblo certifies to HUD that all CDBG funds will be expended in accordance with the Federal regulations and requirements governing the program, including, but not limited to, the program eligibility requirements at 24 CFR 570.202 and the National Objective requirements at 24 CFR 570.208. The City of Pueblo acting by and through its Department of Housing and Citizen Services ( "DHCS ") has structured its water line replacement program to comply with all applicable Federal regulations and requirements. SECTION 1 - DEFINITIONS A. Community Development Block Grant Program (CDBG) The source of funds authorized by Congress and approved by the U.S. Department of Housing and Urban Development for use in this Program. B. Low Income The term given to individuals and households whose total gross income falls below certain levels established by the Federal government. They are based on HUD estimates of median family income, with adjustments for family size. In this program, the Section 8 very -low income limits established by HUD will apply. C. Recipient The City of Pueblo is the governmental unit receiving Federal funds, and, therefore, is the recipient. D. Grantee The applicant or applicants on title to an owner- occupied, single - family residence who receives grant assistance to replace the water line through the CDBG funded water line replacement program. E. Eligible Family Unit: One or more persons related either by blood, adoption, marriage, or familial status who are occupying a permanent residential dwelling unit at the time of application. F. Owner - occupied residences Single - family residences, including manufactured homes permanently attached to real property occupied by the owner thereof. Owner- occupied rental properties are eligible properties and can include a two -unit structure where the owner lives in one of the units and rents the other to a tenant. To be eligible, the rental unit must be a legally permitted unit for a period of at least 5 years. The property owner must sign an agreement that states that the property will continue to be the primary residence of the owner. G. New Water Service Line A new copper pipe, under 1 -1 /2" in diameter that connects a single - family dwelling to the utility main owned by The Pueblo Board of Water Works for the purpose of delivering potable water to the dwelling. H. Existing Water Service Line An existing galvanized, lead, copper, or plastic pipe that connects a single - family dwelling or a group of single - family dwellings to a potable water supply which is under public or private control. I. Ruptured Water Service Line Is an existing water service line that is currently leaking, or upon visual inspection, it is determined by the Board of Water Works that the water service line is corroded to the extent that the line has less than 12 months of serviceable life remaining. J. The 2003 UPC The Uniform Plumbing Code, 2003 Edition, as adopted and amended by the City of Pueblo, which is the code currently in effect and adopted through ordinance by the City of Pueblo establishing minimum requirements and standards on plumbing installations to protect the public health, safety, and welfare. K. The 2003 IRC The International Residential Code, 2003 Edition, as adopted and amended by the City of Pueblo, which is the code currently in effect and adopted through ordinance by the City of Pueblo establishing minimum requirements and standards for the construction, repair, and rehabilitation of one to two family dwellings to safeguard the public safety, health, and general welfare, and safety to life and property from fire and other hazards attributed to the building environment. L. Board of Water Works The utility providing water service to residences within the City of Pueblo. The Board of Water Works owns and is responsible for maintaining: the utility main, water meter, and water meter pit. The Board of Water Works has requirements for the installation of new water service lines, and are detailed in "Water Service Line Installations ", included on the next page: WATER SERVICE LINE 1NS "ALLATION �Praperty tine (�51 AND i 11) 2" x 4" Post w,/ D!ue Water Tope Typical Street & Sidewolk Section 040ter Stop 48" VIN. DEPTH Expansion L ono ro r2" 4Vc ter Moir PERMANENT METER INSTALLATION 21„ �T Dirnenafon "A' = 9" for 314" & '4" for t" Wot�t�tn SPECIAL NOTES. For details set Qaord Mnfer !ns!Ootiurr Spec;fitetu>ns. 2. AO meter sets shall ce locoAed outside of property, auUdings, driveways, side. -*s, vehicle parking areas, and other obsbvc!ions. 3. The service line from She aao,d Main to its po. =nt of use on the prooerty, with exceotiod pf the me €er set, itl the properly owners responsibfility to iMstail Qnd nlointain. L lJ.aF 31 ME. ACAO FILE NAME SEr++/3 -1 04l OCT 1988 M.!l.A.. M. Department of Public Works The City department responsible for maintaining the City's general infrastructure in a safe and functional condition, which meets requirements of the Clean Water Act, and which is responsible for seeing that all new public improvements are designed and constructed in accordance with good engineering standards. The department regulates the excavation of, and repairs to streets, sidewalks, curbs and gutters. It also requires proper backfill techniques during the installation of new water service lines through its internal document, "Standard Construction Specifications and Standard Construction Details" revised March 2S 2005 and adopted by City Council through Resolution No. 10349 of same date. (3/4 „ AND I "1 ""Property Line Z C i.1 x . k'eter (,On , ' 24' . Ar te &. Top Tvo%caf Street & .'' >idewulk Section ELnr7 Gra je T8" MIN. � �� .,L•`�,ii+iz'.rs n 22" 4fAX. 48" A4;N. P_Pra Expansion Loop 21„ �T Dirnenafon "A' = 9" for 314" & '4" for t" Wot�t�tn SPECIAL NOTES. For details set Qaord Mnfer !ns!Ootiurr Spec;fitetu>ns. 2. AO meter sets shall ce locoAed outside of property, auUdings, driveways, side. -*s, vehicle parking areas, and other obsbvc!ions. 3. The service line from She aao,d Main to its po. =nt of use on the prooerty, with exceotiod pf the me €er set, itl the properly owners responsibfility to iMstail Qnd nlointain. L lJ.aF 31 ME. ACAO FILE NAME SEr++/3 -1 04l OCT 1988 M.!l.A.. M. Department of Public Works The City department responsible for maintaining the City's general infrastructure in a safe and functional condition, which meets requirements of the Clean Water Act, and which is responsible for seeing that all new public improvements are designed and constructed in accordance with good engineering standards. The department regulates the excavation of, and repairs to streets, sidewalks, curbs and gutters. It also requires proper backfill techniques during the installation of new water service lines through its internal document, "Standard Construction Specifications and Standard Construction Details" revised March 2S 2005 and adopted by City Council through Resolution No. 10349 of same date. SECTION 2 — WATER SERVICE LINE REPLACEMENT PROCEDURES Using materials and methods approved by the 2003 UPC, the 2003 IRC, the "Standard Construction Specifications and Standard Construction Details" by the Department of Public Works, City of Pueblo, revised March 28` 2005, and "Appendix G, Water Service Line Installations" from the Board of Water Works, the water service line replacement will take place at the existing water tap, usually located in the public right - of -way and under a city street. Above the main, a 6'x7' hole shall be excavated to the depth of the water main, and an additional hole is excavated near the water meter pit. When possible, the existing water service line shall be pulled out and the new line is pulled in behind the existing water service line to minimize excavation and disruption to the landscaping. The new copper line is then connected to the water tap and the water meter on each end respectively. This process is then repeated from the meter to the home. 2. In situations where the existing service line is not 48" below grade, a directional bore will be made at the proper depth and a new water service line snaked into place. If a directional bore is not possible, then as a last resort, a trench will be excavated at a minimum depth of 48" and at least 5' from the sewer line. 3. For properties with a crawlspace deep foundation, the water service line shall be run under the footer a minimum 12" below the footer, and properly protected. For properties with a basement, the water service line shall be run at the minimum depth of 48" to the foundation, and a hole shall be bored large enough to accommodate an approved pipe sleeve with a 11 /2 ' clearance around the diameter of the water service line being installed. After installation the hole shall be sealed watertight, excavations shall be backfilled and properly compacted at 12" lifts. 4. And finally, the asphalt/concrete shall be repaired in the street or public right -of -way. If the damage to the street is so extensive that the road base has been compromised, the affected area shall be excavated, new Type 6 road base shall be brought in 8" lifts and properly compacted prior to the replacement of the asphalt and in accordance with Public Works Construction Specifications Article 14. SECTION 3 - ELIGIBILITY REQUIREMENTS The Water Line Replacement Program assists homeowners through a five -year forgivable grant. In order to qualify for assistance, homeowners must be considered very-low income at or below 50% of the AMI as defined by the U.S. Department of Housing and Urban Development (HUD), and must meet the conditions set forth in this section. The order in which applicants receive assistance is on a first -come, first -serve basis, and is contingent upon available grant funds. The City of Pueblo will review all applications and determine eligibility based on the following: A. General: 1. The dwelling unit must need the water service line replaced as determined by the Pueblo Board of Water Works. 2. The eligible family unit must not have received CDBG funding within the last (5) years. 3. The applicant must meet the National Objective of benefit to low -and moderate - income person as described in 24 CFR 570.208(a)(3). 4. The responsibility for administration of the water line replacement program has been delegated to the Department of Housing and Citizen Services of the City of Pueblo. ( "DHCS "). DHCS staff decisions regarding eligibility are final unless an appeal is filed pursuant to Section 12. B. Property Location: 1. No grants will be made for homes located outside the City of Pueblo. To be eligible, a property must be: Located in the City of Pueblo; 2. The current value of the property, as shown by the records of the County Assessor (full value before calculation of assessed value) cannot exceed 70% of the FHA 203 (b) mortgage limit for Pueblo, CO set annually by HUD. 3. The property must be in conformance /compliance with all current zoning ordinances, or an agreement must be reached as to when and how conformance and compliance will be achieved. Such agreements shall be accepted at the discretion of the Director. 4. The property must not be located inside of a 100 -year floodplain. C. Requirements Applicable to Applicant To be eligible for a water line replacement grant, the applicant may not be currently delinquent in payment of the water utility bill and the applicant must be the owner and occupant of a single - family dwelling unit within the Pueblo City limits. The applicant must be willing to continue residing in said residence for a period of five years after the water line has been replaced. If the applicant sells, transfers title, or fails to occupy the dwelling within the period of five - years, the applicant shall be in default and subject to the terms set under Section 5. D. Income Household income of the applicant must be certified at or below 50% of AMI in accordance with the most current HUD Section 8 income limits for the Pueblo - MSA area, in order to be eligible for a grant. Currently the income limits are: Househol d 1 2 3 4 5 6 7 8 Size Income $18,85 $ 21,550 124 25 $26,950 $29,10 $31,25 $33,45 $35,55 Limit 0 0 0 0 0 0 SECTION 4 - APPLICANT'S INCOME A. Sources of Funds and Amounts Comprising Applicant's Income. In the preparation of all reports and analysis required by this paragraph, the following definition and standards as defined under Section 8 of the United States Housing Act of 1937, and more fully defined in the HUD Handbook "Determining Income and Allowances for the HOME Program" shall apply and be followed by the DHCS to determine the applicant's eligibility for the water line replacement grant. The following is a listing of the elements comprising income for purposes of a water line replacement grant: 1. Gross Family Income: The total income, from all sources whatsoever of each member of an eligible family unit. 2. Applicants may only be natural persons. Income of an applicant includes the income of the applicant and all members of applicant's family residing in the home, together with applicant's spouse, even if the spouse does not reside in the home. The applicant's family includes the applicant and any other person or persons related by blood, marriage, or operation of law, who share the same dwelling unit. If ownership of the property rests in more than one person, the applicant is each owner who shares the dwelling unit. The applicant's income, therefore, is the sum of the family incomes of all applicants. An applicant's income is established on an annual basis, at the time of applying for a water line replacement grant, and includes: a. The applicant's earnings; b. Spouse's earnings, and earnings of all other members of the family who share the household, if the employment of the spouse or other family member is a definite characteristic of family life; c. Other income regularly received by the applicant or his family from any source; d. Net income from real estate, other than the subject property, and any other net business income. 3. Exclusions and Adjustments to Applicant's Income. a. The following exclusions apply to an applicant's income in connection with a water line replacement grant on a residential property: i. For purposes of establishing the amount of the applicant's income that is relevant to the water line replacement grant, there shall be excluded from the income of each adult family member residing in the home the income of any dependent child or children, as defined by the United States Internal Revenue Service. The applicant's income, adjusted in this manner, shall be related to the income limits prescribed in the water line replacement program. ii. The following exclusion applies only to an applicant or family's income in connection with a water line grant. Title II of the Social Security Act, 42 U.S.C., 401 et. Seq., permits, if certain conditions are met (see below), the payment of monthly benefits for educational purposes to the children of an individual entitled to disability or old age insurance benefits. The income attributed to these benefits should be excluded from income in determining eligibility for a grant. SECTION 5 — GRANT & TERM OF GRANT A. For grants received under this program the following terms will be adhered to: 1. The term for the water line replacement grant is five (5) years, and shall be forgiven upon completion of the 5 -year term in accordance with program requirements. 2. The applicant must own and occupy the residence on a full -time basis during the five -year term. If the applicant fails to occupy the residence as his/her full -time residence the grant must be repaid and will become immediately due and payable. 3. During the term of the grant (5 years) interest shall not accrue on the grant funds unless a default occurs. In the case of default, the balance of the grant amount shall become due and payable in full, with accrued interest as provided in the security instruments. 4. If at any time during the five (5) year period, the dwelling unit is sold or transferred in any manner, the grant must be repaid and will become immediately due and payable. 5. And, the grantee must meet all other eligibility requirements of the program. SECTION 6 - NOTE AND DEED OF TRUST A. Promissory Note All water line replacement grants shall be evidenced by a Promissory Note; which shall be executed by the dwelling unit owner ( "grantee ") in a form prescribed by the City of Pueblo. Grantee shall not be required to repay the note unless default occurs. A Deed of Trust on the dwelling unit shall secure the Promissory Note. The Promissory Note shall include the following provisions: 1. The amount of the grant shall be the principal amount on the Note, 2. The default interest rate shall be stated, 3. Upon default, the Note shall provide for late charges, 4. The term of the grantee's obligation to reside in the home shall be set forth, 5. The Note shall provide that all payments under the Note shall be credited first to late charges, second to interest due, then to principal, 6. The Note shall be due and payable upon sale or transfer of the property for any reason; in addition the principal balance of all funds advanced shall become immediately due and payable upon the occurrence of either of the following events within five (5) years from the date of said note: i. Transfer of title to the dwelling unit residence, including transfer upon death of the owner - grantee, unless upon death title shall pass to the spouse or adult child of such owner - grantee who lives in the residence and who also is a an eligible and qualified applicant under the Program and request is made to DHCS to approve such spouse or adult child as an eligible and qualified applicant within 120 days after the death of the owner- grantee (Failure of the surviving spouse or adult child to request and obtain such approval within said 120 day period shall conclusively constitute a waiver of all rights of such surviving spouse or adult child hereunder); or, ii. Applicant ceases for any reason to occupy the residence as applicant's sole and only residence. B. Deed of Trust All water line replacement grants, and the Promissory Note, shall be secured by a lien on the dwelling unit to be repaired evidenced by a mortgage or deed of trust ( "Deed of Trust "). The Deed of Trust will contain such provisions as the City determines necessary for the protection of the City's interest, including provision for monthly escrow payments by the grantee to the City in the amount necessary to pay when due: 1. Property taxes and special assessments, if any; and 2. Fire and extended coverage, flood (if applicable) and any other insurance premium required by the City to be paid by the owner - grantee. C. Subordination Policy The City of Pueblo will consider subordinating its Promissory Note and Deed of Trust to a position no lower than a third position in the following circumstances: 1. If the owner- grantee is refinancing the original mortgage in order to obtain a lower interest rate and/or overall mortgage cost. To be eligible for subordination, a refinancing cannot result in any cash out to the owner — grantee. 2. If the owner - grantee is borrowing money to make additional improvements to the dwelling unit. Documentation must be provided to identify the type and cost of the improvements to be made and the assurance that the borrowed money will be used to make additional improvements. 3. If the owner - grantee is securing a loan that includes funds for additional improvements and for reasons other than home improvement (eg., debt consolidation, medical expenses, etc.), the City will only consider subordination if the Pueblo County assessor's valuation of the property shows that the value of the dwelling unit is greater than the sum of balances on all the mortgages and liens against the property, and if the homeowner has been in the home for at least five years. SECTION 7 — WATER LINE REPLACEMENT PROGRAM ADMINISTRATIVE PROCEDURES A. Applicant Screening 1. The following information related to the individual or household applying for assistance will be obtained and will be verified in writing: a. All sources of income for all people residing in the dwelling unit, including without limitations the following: i. The earned income and retirement income of the prospective grantee and his/her spouse and any other adult who will sign the promissory note or who resides in the dwelling unit; ii. Any other income received, such as alimony, child support, or public assistance that is to be counted for qualification of the applicant; b. All liabilities of applicant including total amount of indebtedness and monthly payment amounts of all indebtedness, including without limitations the following: i. Mortgages, liens, and delinquent taxes against the dwelling unit property that is to be rehabilitated; ii. All consumer debt with an outstanding principal balance, including the amount of monthly payment for each; iii. All other debt that requires regular monthly payments, such as spousal maintenance, child support, or extraordinary medical expenses. 2. The following items related to the dwelling unit will be verified in writing: a. That title to the dwelling unit is held by one or more of the occupants of the dwelling unit to be rehabilitated. b. That all ad valorum property taxes are current. The current value of the property as shown by the records of the Pueblo County Assessor (full value before calculation of assessed value) will also be obtained. SECTION 8 - FUNDING OF INDIVIDUAL WATER LINE GRANTS A. Source of Funds Grant funds, whether or not they are supplemented with funds from other sources, shall be limited to the amount necessary to cover the actual cost of the work to be completed, but at no time shall the amount of grant funding exceed $3,000. B. Grant The City will disburse a water line replacement grant by drawing a check, payable to the contractor. Upon completion, a check in the amount of 70% of the contract will be drawn to the contractor with the retainage paid out upon completion of final advertisement. C. Deposit of Grant After a water line replacement grant has been approved, an account under the grantee's name shall be set -up and a budget amount established in the water line replacement account. D. Management of Water Line Replacement Escrow Account The City shall maintain a single water line replacement account as the depository for all water line grants. This account shall be separate and distinct from all other accounts maintained by the City and shall be for the purpose of depositing and withdrawing water line replacement account funds. 1. Separate Sub - Account for Each Grantee The City shall establish and maintain a separate sub - account within the water line replacement account for each grantee who has received a grant. All receipts and disbursements made for or respect to each grantee shall be recorded in the account. 2. Disbursements from the Water Line Replacement Account. Disbursements from the separate grantee account within the water line replacement account shall be by check made payable to the payee for the following purposes, as may be appropriate: a. Making progress and final payments for water line replacement work. Progress payments, if any, are limited to actual value of the work satisfactorily completed less retainage; b. Close out of the separate grantee sub- account by appropriately disbursing any unutilized funds remaining in the account; 3. Disbursements by the Citv From The Separate Grantee Sub - Account a. The City, upon receipt of appropriate invoices, and a signed authorization to pay the grantee, shall draw a check for the payment of completed and approved work and services. Each check shall be made payable to the appropriate payee, and the City shall transmit the check to the payee. b. Checks shall be delivered, only, after receipt of lien waivers executed by the payee. SECTION 9 - CONTRACTING FOR WATER LINE REPLACEMENT WORK A. Bidding, Payments, and Documents 1. Construction work for water line replacement financed through this grant shall be undertaken through a written contract between the contractor and the owner — grantee. The DHCS shall solicit sealed bids, annually, based on unit pricing, and award the prospective construction work to the lowest responsible bidder. Upon satisfactory completion of each individual water line replacement project, the contractor shall be paid 70% of the contract with the retainage paid to the contractor upon satisfactory completion of all corrective work, receipt of lien waivers, and final advertising. All work will have at a minimum a one -year after completion guarantee on all materials and workmanship. 2. The construction contract will consist of a document signed by the contractor and accepted by the owner - grantee. It shall contain a bid and a proposal by the contractor and the general conditions, as well as the specifications for the work to be performed. Terms and specifications may be included in the contract or incorporated by reference. 3. Issuance of a Notice to Proceed Order: The construction contract shall provide that the owner- grantee authorizes the contractor to proceed, and shall require the start of construction be no sooner than four (4) days from the date of the contract's signing and no later than seven (7) days from the date of the contract's signing. B. City Responsibilities The contract will be between the owner - grantee and the contractor; although DHCS will assist the owner- grantee, the City shall not be responsible for the contractor's performance. SECTION 10 - COSTS ALLOWABLE IN A WATER LINE REPLACEMENT GRANT A. Allowable Costs 1. Costs allowable under this program include the costs directly associated with replacement of the water line and repair of the public right of way as required by the Regional Building Department, the City of Pueblo Department of Public Works, the Pueblo Board of Water Works, and administrative costs that are eligible under the CDBG program. 2. The re- connection of the sprinkler system main valve is an allowable cost, only if existing. B. Costs Not Allowable 1. Tap fees, utility charges and assessment fees, or utility usage costs incurred are not eligible. 2. Costs associated with removal, repair, and/or replacement of fencing are not eligible. 3. Interior plumbing work beyond the main shut off is not an allowable activity. 4. Costs associated with repair or replacement of landscaping are not eligible. 5. Costs associated with water damage to personal property are not eligible. C. Work Write -Up The DHCS shall prepare a work write -up to document the work to be financed with a water line grant. SECTION 11— FEDERAL REQUIRMENTS A. Fair Housing Requirements Public Law 88 -352 refers to Title VI of the Civil Rights Act of 1964 (42 U.S.C. §2000d et seq), which provides that no person in the United States shall, on the ground of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance. 2. Title VIII of Public Law 90 -284 refers to the Fair Housing Act (42 U.S.C. §3601), which states that it is the policy of the United States to provide, within constitutional limitations, for fair housing throughout the United States and prohibits any person from discriminating in the sale or rental of housing, the financing of housing, or the provision of brokerage services, including otherwise making unavailable or denying a dwelling to any person, because of race, color, religion, sex, national origin, handicap (disability), or familial status. 3. Executive Order 11063, as amended by Executive Order 12259, directs HUD to take all action necessary and appropriate to prevent discrimination because of race, color, religion (creed), sex, disability, or national origin, in the sale, leasing, rental, or other disposition of residential property and related facilities (including land to be developed for residential use), or in the use or occupancy thereof, if such property and related, facilities are, among other things, provided in whole or in part with the aid of loans, advances, grants, or contributions agreed to be made by the Federal Government. B. Non - discrimination in Proaam Benefit 1. Section 109 of Title I of the Housing and Community Development Act (42 U.S.C. §5309), requires that no person in the United States shall on the ground of race, color, national origin, disability, or sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with community development funds made available pursuant to the Act. For purposes of this section, "program activity" is defined as any function conducted by an identifiable administrative unit of the recipient, or by any unit of government, sub recipient, or private contractor receiving community development funds or loans from the recipient. Specific discriminatory actions prohibited include: a. Denying any individual any facilities, services, financial aid, or other benefits provided under the program or activity. b. Providing any facilities, services, financial aid or other benefits, which are different, or are provided in a different form, from that provided to others under the program or activity. c. Subjecting an individual to segregated or separate treatment in any facility in, or in any matter of process related to receipt of any service or benefit under the program or activity. d. Restricting an individual in any way in access to, or in the enjoyment of, any advantage or privilege enjoyed by others in connection with facilities, services, financial aid or other benefits under the program or activity. e. Treating an individual differently from others in determining whether the individual requirement or condition which the individual must meet in order to be provided any facilities, services, or other benefit provided under the program or satisfies any admission, enrollment, eligibility, membership, or other activity. f Denying an individual an opportunity to participate in a program or activity as an employee. 2. A recipient may not use criteria or methods of administration which have the effect of subjecting persons to discrimination on the basis of race, color, national origin, handicap status, or sex, or have the effect of defeating or substantially impairing accomplishment of the objectives of the program or activity with respect to persons of a particular race, color, national origin, handicap status, or sex. 3. A recipient, in determining the site or location of housing or facilities provided in whole or in part with funds under this part, may not make selections of such site or location which have the effect of excluding persons from, denying them the benefits of, or subjecting them to discrimination on the ground of race, color, national origin, handicap status, or sex; or which have the purpose or effect of defeating or substantially impairing the accomplishment of the objectives of the Act and of this section. 4. Section 109 of the Act further provides that any prohibition against discrimination on the basis of age under the Age Discrimination Act of 1975 (42 U.S.C. §6101 et seq) or with respect to an otherwise qualified handicapped person as provided in Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. §794) shall also apply to any program or activity funded in whole or in part with funds made available pursuant to the Act. C. Environmental Standards 1. Section 104(g) of the National Environmental Policy Act of 1969 states that the intent of the policies of the Act and other provisions of law which further the purposes of such Act be most effectively implemented in connection with the expenditure of funds under the Act. 2. Regulations governing such expenditures are set forth in 24 CFR Part 58 and will be complied with in completing this activity. D. Use of Debarred, Suspended, or Ineligible Contractors or Subrecipients Assistance under this Program shall not be used directly or indirectly to employ, award contracts to, or otherwise engage the services of, or fund any contractor or sub recipient during any period of debarment, suspension, or replacement in ineligibility status under the provisions of 24 CFR Part 24 of the regulations. E. Conflict of Interest The requirements of 24 CFR 570.204(c), 24 CFR 85.36 and OMB Circular A -110 apply to all procurement of supplies, equipment, construction, and services by recipients and subrecipients. 2. No member of or Delegate to the Congress of the United States, and no Resident Commissioner shall be permitted to share in any proceeds of the grant, or in any benefit arising from the same. 3. No bonus, commission, or fee shall be paid for the purpose of obtaining the Government's approval of the grant application, or any other approval or concurrence required by the Government or its designee, to complete the work, financed in whole or in part with the water line replacement grant. 4. No member of the governing body of the City of Pueblo, and no other public official of the City of Pueblo who exercises any functions or responsibilities in connection with the administration of the federally- assisted project or program, and no other officer or employee of the City or consultant who exercises such functions or responsibilities, or any relatives thereof or third parties acting on their behalf, shall be allowed to have any interest, direct or indirect, in the proceeds of any grant, or in any contract entered into by the applicant for the performance or work financed in whole or in part with the proceeds of the water line replacement grant. F. Use of Grant Proceeds An applicant agrees, by signing and submitting a grant application, that the grant proceeds may only be used to pay for costs of services and materials necessary to carry out the water line replacement work for which the grant will be approved. G. Completion of Work An applicant agrees, by signing a grant application, to assure that the water line work shall be carried out promptly and efficiently, through written contract awarded with the prior concurrence of the City. H. Inspection An applicant agrees, by signing a grant application, to allow inspection of the property by the City or its designee, all related work and all contracts, materials, equipment, payrolls, and conditions of employment pertaining to the work. Records An applicant agrees, by signing a grant application, to keep such records as may be required by the City with respect to the water line replacement work. J. Incorporation The provisions of subsections I thru L shall be incorporated and included in all grant documents. SECTION 12 - GRIEVANCE PROCEDURES Any applicant for a water line replacement grant aggrieved by a decision of the staff of the DHCS with respect to eligibility and /or amount of grant may have the decision reconsidered by another member of the staff of the DHCS (other than the person who made the initial decision). Such request for reconsideration shall be filed in writing in the office of DHCS within thirty (30) days after the date of the initial decision. Such reconsideration shall be concluded within twenty (20) calendar days after receipt of the written request for reconsideration and the decision based on such reconsideration shall be given in writing to the applicant within twenty (20) calendar days after receipt of the request for reconsideration. If the applicant is not satisfied with the decision based on such reconsideration, the applicant, within twenty (20) days after receipt of notice of the decision on reconsideration, may appeal the decision in writing to the DI-ICS Director or his designee who shall not have been involved in either the initial decision or the decision on reconsideration. Such written appeal shall specify the grounds therefore. The Director or his designee shall conduct a hearing on such appeal within thirty (30) days after receipt of the written notice of appeal. The decision of the Director and/or his designee shall be binding upon the applicant and DHCS. Failure of the applicant to timely file a request for reconsideration and /or an appeal to the Director shall be deemed a waiver of any right to reconsideration and/or appeal. All applicants shall be advised of their right to reconsideration and /or appeal. SECTION 13 - EXCEPTIONS The provisions of the City of Pueblo Water Line Replacement Program set forth herein are subject to modification and amendments at time by the City Council of the City of Pueblo and such authority is hereby reserved to the City Council.