Loading...
CC Resolution No. 2939 RESOLUTION NO. 2939 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, ADOPTING THE REVISED COMMUNITY DEVELOPMENT BLOCK GRANT OWNER-OCCUPIED HOUSING REHABILITATION PROGRAM GUIDELINES; PROVIDING FOR A REPEALING CLAUSE; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. ****************************************************************************** BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS: Section 1: That the City Council of the City of Baytown, Texas, hereby adopts the revised Community Development Block Grant Owner-Occupied Housing Rehabilitation Program Guidelines, which are attached hereto as Exhibit"A"and incorporated herein for all intents and purposes. Section 2: All resolutions or parts of resolutions inconsistent with the terms of this resolution are hereby repealed, provided, however, that such repeal shall be only to the extent of such inconsistency; and in all other respects, this resolution shall be cumulative of other resolutions regulating and governing the subject matter covered by this resolution. Section 3: This resolution shall take effect immediately from and after its passage by the City Council of the City of Baytown. INTRODUCED, READ and PASSED by the affirmati vote of the City Council of the City of Baytown this the 25"day of July, 2024. BRANDON CAPEITILLO, Mayor A TEST: yam,o A ° ANGELA AC 0 ty,Cl9'i ',A z' 1 APPROVED A TO FORi�I � SCOTT LEM ND,City Attorney CDBG Owner Occupied Housing Rehab Guidelines doc Exhibit "A" Revised 04 08 2024 OWNER-OCCUPIED HOUSING REHABILITATION PROGRAM The Housing and Community Development Act of 1974 provides funds for cities to rehabilitate current housing stock for low to moderate-income homeowners. Grants are made to cover the cost of repairs and improvements necessary to make the property conform to public standards for decent, safe and sanitary housing as required by applicable codes. The purpose of the Owner-Occupied Housing Rehabilitation Program (the "Program") is to encourage the rehabilitation and conservation of the community's older housing stock. The program requirements are based on home ownership within the city limits and annual income. The income guidelines include all sources of income for all members of the household. The Program will assist homeowners with rehabilitation of safety, health and code violations (such as electrical, plumbing, foundation, and roof repair) and/or a handicap disabled modification (such as access ramps, grab bars, and widening of doors). A person shall not be eligible for rehabilitation/reconstruction assistance if (i) such person has already received assistance through the handicap disabled modification program or (ii) the home for which assistance is sought has previously been modified through the handicap`disabled modification program. Cosmetic repair items are considered only after all code items have been corrected. The Owner-Occupied Housing Rehabilitation Program operates on a first-come, first-serve basis. There is a waiting list. The homeowner shall complete the application process and return the application to the Planning and Development Services Department, Community Development Division. The Owner-Occupied Housing Rehabilitation Program provides the following types of assistance: I. Not to exceed $5,000 for Handicap Disabled Modifications; II. Not to exceed $25,000 for Rehabilitation; and III. Not to exceed the maximum amount allowed per 10 Texas Admin. Code §23.31 for a Reconstruction. If the home is in severe disrepair, and the estimated cost of repairs to bring the structure into code compliance exceeds the maximum rehabilitation limits, then the structure will not be eligible for rehabilitation and may be eligible for reconstruction. Eligibility Requirements All potential participants must provide the appropriate documents to verify the following: 1. Applicant must reside within the city limits of Baytown; 2. Applicant must own the home; 3. Applicant must have owned and occupied the home for which assistance is sought for three years as hi&:her primary residence; 4. All members of homebuyer's household must be legal residents of the United States; Revised 04/08 2024 5. Applicant household's annual gross income must not exceed the maximum income limits,which will be recalculated each year, based on HUD's guidelines and the median income of residents of the Houston-Sugar Land-Baytown Metropolitan Statistical Area; and 6. Applicant does not owe a debt to the City(any delinquent sum of money levied, imposed or assessed by the City against any applicant or property of the applicant, including, but not limited to, those for ad valorem taxes on real or personal property located within the boundaries of the City). REQUIREMENTS FOR THE APPLICATION The application for participation in the Owner-Occupied Housing Rehabilitation Program must be completed by the homeowner(s) and shall include appropriate documentation to verify the following: I. Composition of Household. Household composition should include all persons who occupy the applicant's housing unit at the time of application. The occupants may consist of a single person; group of persons related by birth, marriage, adoption, or law; or a group of unrelated persons who share living arrangements. II. Household's Annual Gross Income. The applicant household's annual gross income must not exceed the maximum income limits calculated each year based on HUD's guidelines of the area median income of residents of the Houston-Sugar Land-Baytown Metropolitan Statistical Area. III. Ownership and Occupancy. The applicant must have owned and occupied the home for which assistance is sought for three years as his:her primary residence prior to requesting assistance through this Program. IV. Eligible Homes Eligible homes must meet the following criteria: A. Located within the city limits of the City of Baytown; B. Single-family, detached dwelling units, excluding accessory structures. mobile and manufactured homes; C. The Director of Planning and Development Services or hislher designee shall approve applications for handicap disabled modifications, without rehabilitation; D. A handicap/disabled modification project, without rehabilitation, is a one- time assistance. No rehabilitation assistance will be provided; E. An applicant whose home has had rehabilitation/reconstruction, without handicap/disabled modifications, may be eligible for a one-time handicap/disabled modification project; and F. All governmental liens and assessments must be paid in full. Owner-Occupied Housing Rehabilitation Program,Page 2 Revised 04/08/2024 V. Property Condition and Maintenance In order to qualify, during the eligibility phase and throughout the term of the lien agreement,the homeowner must be in compliance with the City of Baytown Code of Ordinances, including, but not limited to, the following: A. Chapter 34 "Environment," Article III "Junked, Wrecked, Abandoned Property" of the Code of Ordinances of the City of Baytown; B. Chapter 18 "Building and Building Regulations,"Article VII"International Property Maintenance Code" and Article IX "Minimum Property Standards"of the Code of Ordinances of the City of Baytown; C. Chapter 42 "Health and Sanitation" of the Code of Ordinances of the City of Baytown; and D. Appendix A "Unified Land Development Code." Any applicant who falsifies information will be disqualified from the program,will be reported to the Baytown Police, and may be subject to criminal action. GENERAL INFORMATION ON THE REHABILITATION PROCESS Once an application has been reviewed, and it has been determined that the applicant qualifies for the Owner-Occupied Housing Rehabilitation Program, the Staff will take the following steps: 1. Conduct a Homeowner's Workshop at which time Staff will meet with the homeowner to discuss the Program process and any known problems with the home, including, but not limited to, leaking roof, faulty electrical, faulty plumbing, and foundation repair; 2. Walk through and evaluate interior and exterior of structure, including, but not limited to, lead evaluation; 3. Walk through with the Chief Building Official or his:her designee for final evaluation of code compliance issues; 4. Complete a work write-up that includes the scope of work to be performed on the home; 5. Prepare a bid package and advertise for bids; 6. Conduct a pre-bid conference to ensure that all bidders understand the rehabilitation specifications; 7. Open bids and submit the bids to City Council, who will award the contract to the bidder providing the best value for the municipality; 8. Prepare all other necessary forms for execution by the homeowner, contractor, and Staff. These forms include, but are not limited to: a. Contract, b. Owner Lien Agreement, C. Intent to Place Lien, d. Supplemental Side Agreement, e. Right to Financial Privacy Act, f. Affidavit & Indemnity, g. Non-discrimination Clause, h. Disposition of Property, Owner-Occupied Housing Rehabilitation Program,Page 3 Revised 04/08/2024 i. Notice to Proceed, j. Lead Disclosure (if applicable), k. Pre-Construction Conference, 1. Contractor Authorization, M. "No Employee" Affidavit, and n. Bidder's Security Return. Once these steps have been completed, work should begin on the home within ten (10) days of the permit being issued. Depending on the scope of the project, the work will take approximately forty-five (45) to ninety (90) working days. A working day is an eight(8) hour day, Monday through Friday, excluding holidays. The work schedule will be adjusted for inclement weather. The contractor will furnish a one-year warranty on all the repairs made to your home. If you have any problems, you should contact the Community Development Division as soon as possible. If the homeowner or someone other than the original contractor attempts to make a repair, the warranty may be voided, and the homeowner will be responsible for the cost of the repairs. The warranty does not cover damages caused by homeowner abuse, normal wear and tear,weather, neglect, or intruders. The owner(s) of the property shall be required to attend a Community Development homeowners' workshop that includes education on maintenance and homeowner responsibilities after the work is complete. RELATIONSHIP BETWEEN THE CITY OF BAYTOWN, THE CONTRACTOR, AND THE HOMEOWNER The Director of Planning and Development Services or his/her designee will represent the City of Baytown when it is necessary to resolve disputes between the homeowner and the contractor. The Director of Planning and Development Services or his/her designee has the right to change the work write-up as necessary as work progresses. The contractor, the Director of Planning and Development Services, the Director of Finance and the City Manager shall sign the change orders necessitated by a change in the scope of the project. If the need arises to speak to the contractor, the homeowner shall contact the Demolition and Housing Inspector or any Community Development Staff. The homeowner shall not interfere with the work of the contractor. The homeowner shall not have any additional work performed on the house during the rehabilitation process. Only the work described in the work write-up or approved change order(s) will be done. The City of Baytown will serve as the point of contact for homeowners during the entirety of the sewer line repair and/or replacement process. The contractor, his/her employees, and the homeowner(s), shall not be discriminated against on the basis of religion, race, national origin, age, disability, or gender. INFORMATION ON THE LIEN AGREEMENT 1. In the event the owner(s) sells, assigns, encumbers, or transfers the property within five years from the date of acknowledgement of final completion of the work required, the Owner-OccuRied Housing Rehabilitation Program,Page 4 Revised 04/08/2024 owner will be held liable to the City of Baytown for the amount of reimbursement according to the following schedule: ➢ the first twelve (12) months - 1000 o of the total rehabilitation project ➢ thirteen (13) to twenty-four(24) months - 80% of the total rehabilitation project ➢ twenty-five (25) to thirty-six (36) months - 60% of the total rehabilitation project ➢ thirty-seven (37) to forty-eight (48) months -400 o of the total rehabilitation project ➢ forty-nine (49) to sixty(60) months - 200o of the total rehabilitation project The unforgiven balance of the assistance provided shall be due and payable to the City of Baytown within sixty (60) days of the date of the sale, transfer of title, failure to maintain completed code compliant repairs or cessation of owner-occupied status. If not paid within the time specified, interest will be accrued at a rate of one percent (1°o) each month or the maximum interest rate allowed by law, whichever is less. The lien will not be released until the appropriate payment is received. 2. In the event of the death(s) of the owner(s) of the property, and at the request of the owner's heir(s), the Staff will determine eligibility on the heir(s) to the property. The heir(s) must complete an application and present proper proof of heirship within a six month period after the death of the owner(s). The current Program eligibility criteria will be used to determine eligibility on the owner's heir(s). If the heir(s)does not qualify for the Program and.or will not fulfill the owner-occupied requirement, reimbursement according to the schedule below shall be required and the estate will be required to reimburse the City the following amounts if the death occurs within: ➢ the first twelve (12) months - 1000 o of the total rehabilitation project ➢ thirteen (13) to twenty-four(24) months - 80% of the total rehabilitation project ➢ twenty-five (25) to thirty-six (36) months - 60% of the total rehabilitation project ➢ thirty-seven (37) to forty-eight (48) months - 400o of the total rehabilitation project ➢ forty-nine (49) to sixty(60) months - 200o of the total rehabilitation project The unforgiven balance of the assistance provided shall be due and payable to the City of Baytown within one hundred eighty (180) days of the death of the owner(s). If not paid within the time specified, interest will be accrued at a rate of one percent(101o)each month or the maximum interest rate allowed by law, whichever is less. The lien will not be released until the appropriate payment is received. Owner-Occupied Housing Rehabilitation Program,Page 5 Revised 04/08/2024 GENERAL INFORMATION Violating the guidelines in any manner constitutes violation of the contract and the homeowner will be disqualified from the Owner-Occupied Housing Rehabilitation Program and all other housing programs offered by the Community Development Division. Upon the determination by the Director of Planning and Development Services or his her designee that a violation of the guidelines has occurred,the applicant(s)must repay the City of Baytown in full for all work performed on the home. Any person wishing to appeal a decision of the Director of Planning and Development Services or his her designee on the grounds that the decision misconstrues or wrongly interprets these guidelines may, within thirty (30) days after the decision, appeal the decision to the City Manager or his designee, provided that the homeowner gives notice of appeal in writing to the City Clerk within a thirty (30) day period after the denial by the Director of Planning and Development Services. The notice of appeal must detail the basis of the appeal. AUTHORIZATION TO MAKE CHANGES TO THE PROGRAM The City Manager or his her designee has the authority to approve an increase in the maximum assistance limits, provided that the amount of any increase does not exceed twenty-five (250 o) of such limits as herein approved. Owner-Occupied Housing-Rehabilitation Program,Page 6