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HomeMy WebLinkAbout12001RESOLUTION NO. 12001 A RESOLUTION APPROVING AND ADOPTING ADMINISTRATIVE PROCEDURES FOR A MINOR REPAIRS PROGRAM TO ASSIST LOW TO MODERATE INCOME OWNERS OF SINGLE FAMILY RESIDENCES 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 low to moderate-income families to assist in minor repairs; 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 Minor Repairs 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 Council may, on an annual basis by appropriate legislative enactment, but without obligation to do so, make available to the Housing and Citizen Services Department (herein “Department”) 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: October 12, 2010 BY: Vera ortegon COUNCILPERSON Background Paper for Proposed RESOLUTION # M-7 AGENDA ITEM DATE: October 12, 2010 DEPARTMENT: HOUSING AND CITIZEN SERVICES/ ADA RIVERA CLARK TITLE A RESOLUTION APPROVING AND ADOPTING ADMINISTRATIVE PROCEDURES FOR A MINOR REPAIRS PROGRAM TO ASSIST LOW TO MODERATE INCOME OWNERS OF SINGLE FAMILY RESIDENCES ISSUE Should the City Council approve administrative procedures for a Minor Repairs Program, which will allow the Department of Housing and Citizen Services to provide needed services to low to moderate-income homeowners? RECOMMENDATION Approval of the Resolution BACKGROUND The Department of Housing and Citizen Services wishes to establish the Minor Repairs Program. The Program is in response to needs expressed by residents of the City of Pueblo, and substantiated by the rehabilitation staff. This program will complement the current Owner- Rehabilitation Program. The Program assists homeowners through a forgivable grant. No repayment is required, if the applicant continues to own and occupy the residence on a full time basis for the next five-years. If the applicant fails to occupy the residence full time for the five-year term, the full amount of the grant will become due and payable. In order to qualify for assistance, homeowners must be considered low to moderate-income at or below 80% of the AMI as defined by the U.S. Department of Housing and Urban Development and shall have no outstanding tax lien or judgment against their property and be current on their mortgage. The Program will provide a maximum of $5,000 in CBDG funds per home for eligible minor home repairs. Projects under $500 are not eligible. This program may provide assistance only one time in a five-year period, with a maximum lifetime assistance of $10,000. Assistance will be provided on a first-come, first-serve basis, and is contingent upon availability of grant funds. FINANCIAL IMPACT Funding for this Program was previously approved by the City Council in the 2010 Annual Action Plan and is available in Project No: CD1012. CITY OF PUEBLO MINOR REPAIRS 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 reducing the cost burden of owner households associated with substandard housing The objective of the Program is to provide for safe and decent housing The assistance shall be provided to families at 80% of the area medium income and below that reside within the City limits 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 Minor Repairs Program to comply with all applicable Federal regulations and requirements SECTION 1 - DEFINITIONS A. Applicant: Applicant means the title owner(s) of the property seeking assistance under the Program An Applicant must be a natural person and reside in the Property B Community Development Block Grant Program (CDBG) CDBG is the source of funds authorized by Congress and approved by the U S Department of Housing and Urban Development for use in this Program C Property Property means the eligible dwelling which shall receive the benefit of the repairs under the Program D Family Unit: Family Unit means one or more persons related either by blood, adoption, marriage, or familial status that are occupying an Eligible Dwelling unit at the time of application E Grantee Grantee means an Applicant(s) who has been approved and receives grant assistance through the Program F Low Income For this Program, Low Income shall mean individuals and households at or below 80% of AMI (Area Medium Income) in accordance with the most current HUD Section 8 income limits for the Pueblo — MSA area G Program Account: Program Account shall mean the general depository account for all monies from any source to be disbursed pursuant to this Program H Recipient: The City of Pueblo is the governmental unit receiving Federal funds, and, therefore is the recipient. 1 Sub - Account: Sub - account shall mean the separate account established for each Grantee from which specific disbursements will be made to a contractor for work completed on the Grantee's Property J NEC NEC means the National Electric Code, 2008 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 electrical installations to protect the public health, safety and welfare K. IRC IRC means the International Residential Code, 2009 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. SECTION 2 - ELIGIBILITY REQUIREMENTS The Program assists homeowners through a forgivable grant. In order to qualify for assistance, homeowners must be considered low to moderate - income at or below 80% 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 household makeup must meet the definition of a "Family Unit" 2 Any and all loans and /or mortgages secured by the Property must be current. 3 The property taxes must be paid and the Property must be free from all tax liens 4 The current assessed property value cannot exceed 50% of the FHA 203 (b) mortgage limit for Pueblo, CO set annually by HUD Currently the FHA 203(b) limit is $200,160 5 The applicant must meet the National Objective of benefit to low -and moderate - income person as described in 24 CFR 570 208(a) (3) 6 The applicant must have owned the Property for the past two years 7 The Property must be the applicant's primary residence B Administration of Proaram The responsibility for administration of the 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 10 Assistance may be provided 2 from one of seven categories listed in Section 8 Items cannot be chosen from multiple categories. C Eligible Properties 1 Properties must be located within the Pueblo city limits 2. Properties must be 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. However, for the owner - occupied rental properties to be eligible, the rental unit must be a legally permitted unit for a period of at least 5 years immediately preceding the date of the grant application 3 The Property must not be located inside of a 100 -year floodplain D Income Requirements Household income of the Applicant must be certified at or below 80% of AMI in accordance with the most current HUD Section 8 income limits for the Pueblo- MSA area, in order to be eligible for assistance House hold 1 2 3 4 5 6 7 8 Size 2010 Income $31600 $36100 $40600 $45100 $48750 $52350 $55950 $59550 Limit 3 SECTION 3 — GRANT & TERM OF GRANT A. For arants received under this proaram the followina terms will be adhered to 1 Minimum grant amount is $500 2 The grant shall be in the form of a forgivable grant. No repayment is required if the applicant continues to own and occupy the residence on a full time basis for the five - years following receipt of the grant. If the applicant fails to occupy the residence full time for the entire five -year term, the grant will become due and payable 3 The Program will provide up to a maximum of $5,000 in CBDG funds per Property for eligible repairs, once in a five -year period, with a maximum lifetime assistance of $10,000 SECTION 4 - INCOME DETERMINATION 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 HUD Handbook "Technical Guide for Determining Income and Allowances" shall apply and be followed by the DHCS to determine the applicant's eligibility for the Program The following is a listing of the elements comprising income for purposes of the Program 1 Household Income of the Applicant shall consist of the total combined incomes of each of the members of the Family Unit. Household Income of the Applicant includes all income from any source whatsoever of each member of the Family Unit, unless excluded below The income of an Applicant's spouse shall be included in the Household Income of the Applicant even if the spouse does not reside in the Property An Applicant's income is established on an annual basis, at the time of the application for a Program grant. 2 Income shall include. a All earnings, including wages, salary, bonuses, fringe benefits, and tips, b Retirement benefits c. Support payments, including but not limited to child support and maintenance, d Other income regularly received by the applicant or his family from any source, including public assistance, or in -kind contributions, e Net income from real estate, other than the subject property, and any other net business income 3 Exclusions and Adjustments to Applicant's Income 4 a The following shall be excluded from the Household Income of Applicant: 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 Program ii The payment of monthly benefits for educational purposes to the children of an individual entitled to disability or old age insurance benefits as permitted by Title II of the Social Security Act, 42 U S C , 401 et. Seq b The Applicant's income shall be adjusted pursuant to the above exclusions and the adjusted income used to determine eligibility for the Program SECTION 5 — MINOR REPAIRS PROGRAM ADMINISTRATIVE PROCEDURES A. Applicant Screening 1 Proof of all sources of income for the Applicant, Applicant's spouse, and the Family Unit, will be obtained and verified in writing Applicant shall provide documentation to prove income Such documentation may include, but not be limited to pay stubs, tax returns, bank statements, retirement account statements, award letters, and court orders. 2. Proof of all liabilities against the Property will be obtained from the Applicant and verified in writing Liabilities include but are not limited to mortgages, liens, and delinquent taxes against the Property that is to be repaired Applicant shall provide documentation to demonstrate liabilities. Such documentation may include, but not be limited to monthly statements, delinquent tax notices, and loan documents 3 The following items related to the dwelling unit will be verified in writing a. Title to the dwelling unit is held by the Applicant(s), b Applicant(s) resides in the Property; c. All ad valorum property taxes are current; d The current value of the property as shown by the records of the Pueblo County Assessor (full value before calculation of assessed value) SECTION 6 — FINANCIAL MANAGEMENT PROCEDURES A. Source of Funds Grant funds 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 be less than $500, or exceed $5,000 for any given Property in a five year period and $10,000 in a lifetime 5 B Grant The City will disburse a Minor Repairs Grant by drawing a check, payable to the contractor Upon completion of the repairs, a check in the amount of 70% of the contract amount will be drawn to the contractor with the 30% retainage paid upon completion of all corrective work, receipt of lien waivers, and completion of final advertisement. C Deposit of Grant After a grant has been approved, an account under the grantee's name shall be set -up and a budget amount established in the Program Account. D Minor Repairs Account The City shall maintain a single Program Account as the general depository for all monies received and which are to be disbursed pursuant to this Program 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 Program account funds 1 Separate Sub - Account for Each Grantee The City shall establish and maintain a separate Sub - account within the Program Account for each Grantee All receipts and disbursements made for, or with respect to each Grantee's Property shall be recorded in the Sub - account. 2 Disbursements from the Proaram Account. Disbursements from each separate Sub - account established within the Program Account shall be by check made payable to the contractor payee for the following purposes, as may be appropriate a Making payments for work done through the Program Progress payments may be paid upon receipt of appropriate invoices, and an authorization to pay signed by Grantee Progress payments are limited to actual value of the work satisfactorily completed less retainage Each check shall be made payable to the appropriate contractor payee, b Paying retainage only after completion of any and all corrective work receipt of lien waivers and final advertisement by the City; and c Closing out of the separate grantee sub - account by appropriately disbursing any unutilized funds remaining in the account back to the Program Account. SECTION 7 - CONTRACTING FOR WORK UNDER THE MINOR REPAIRS PROGRAM A. Biddino. Payments. and Documents 1 Repair work financed through this Program, shall be undertaken through a written contract between the contractor and the City The DHCS shall solicit sealed bids, annually, based on unit pricing, and award the prospective repair work to the lowest responsible 6 bidder Upon satisfactory completion of the work on each Property, 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 shall be guaranteed for materials and workmanship for at least one -year after completion of the repairs on the Property B Notice to Proceed 1 DHCS shall prepare a work write -up to specify the repairs to be completed on each Property and financed under the Program 2 DHCS shall issue a written Notice to Proceed upon receipt of a signed contract between the contractor and the City The repairs contract shall provide that the Grantee authorizes the contractor to proceed The repairs contract and Notice to Proceed shall require the contractor to start construction no sooner than four (4) days from the date of the repairs contract's signing and no later than fifteen (15) days from the date of the repairs contract's signing SECTION 8 — ELIGIBLE ACTIVITIES All repairs must be selected from a single category, and must fall between the minimum and maximum dollar amount allowable by the program Eligible project categories are mechanical system, electrical system, plumbing system, safety and security weatherization, handicap accessibility, and exterior residence appearance Below is a list of examples of eligible repairs by category This list is not meant to be an exhaustive list of all eligible repairs under the Program 1 Mechanical System Repair or replacement of non - functioning heat system, thermostat, non - functioning heat run, sealing heat ducts 2 Electrical System Repair or replace unsafe wiring, outlets, breakers, addition of GFCI circuits in kitchens and bathrooms, addition of smoke detectors and carbon monoxide detectors in and near bedrooms 3 Plumbing System Repair or replacement of water heater, supply and drainage systems, including service to main, defective fixtures including toilets, sinks, and faucets plumbing leaks, gas leaks 4 Safety and Security Exterior doors, exterior door locks and dead bolts, window locks, broken windows, exterior lighting, exterior porches, steps, and house walk to eliminate trip hazards, interior handrails and guardrails, floor repairs to eliminate trip hazards 5 Weatherization Insulation, door and window weather - stripping doors and window replacement, roofing (if home not covered by insurance), gutters, down spouts 6 Handicap accessibility Grab bars, rails, ADA compliant door hardware and bathroom fixtures 7 Exterior Residence Appearance Exterior painting SECTION 9 — INELIGIBLE AND PROHIBITED ACTIVITIES 1 Repair or replacement of appliances 7 2 Repairs to detached garages or accessory structures 3 Public sidewalk, curb and gutter 4 Carpet cleaning 5 Repair or replacement of non - essential items (hot -tubs, swimming pools, etc ) 6 Repairs that require asbestos and lead based paint abatement. 7 Costs associated with property loss or damage SECTION 10 — FEDERAL REQUIRMENTS A. Fair Housing Requirements 1 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 Proaram 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 8 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 9 D Use of Debarred. Suspended, or Ineligible Contractors or Sub recipients 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 1 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 sub recipients 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 Program 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 Program 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 work related to the Program for which the grant will be approved G Completion of Work An Applicant agrees, by signing a grant application, to assure that the 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 Program 10 J Incorporation The provisions of subsections I, J, and K shall be incorporated and included in all grant documents SECTION 11 - GRIEVANCE PROCEDURES Any applicant for the Program 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, and a written decision on the reconsideration mailed to Applicant, within twenty (20) calendar days after receipt of the written request for reconsideration Failure of the applicant to timely file a request for reconsideration to DHCS shall be deemed a waiver of any right to reconsideration and /or appeal If the applicant is not satisfied with the decision based on such reconsideration, the applicant, within twenty (20) days after the date of the written decision on reconsideration, may appeal the decision by submitting a written notice of appeal to the DHCS Director or his designee who shall not have been involved in either the initial decision or the decision on reconsideration Such written notice of appeal shall specifically state the grounds upon which the Applicant is appealing the decision on reconsideration The Director or his designee shall conduct a hearing on such notice of appeal within thirty (30) days after receipt of the written notice of appeal The decision of the Director and /or his designee shall be in writing and binding upon the applicant and DHCS Failure of the applicant to timely file a written notice of appeal to the Director shall be deemed a waiver of any right to appeal All applicants shall be advised of their right to reconsideration and /or appeal SECTION 12 - EXCEPTIONS The provisions of the Program set forth herein are subject to modification and amendments at any time and such authority is hereby reserved to the Director of Housing and Citizen Services 11