CC Resolution No. 2432RESOLUTION NO. 2432
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, ADOPTING THE CITY OF BAYTOWN'S HOME INVESTMENT
PARTNERSHIPS ( "HOME ") HOMEOWNER REHABILITATION
ASSISTANCE ( "HRA ") PROGRAM GUIDELINES; PROVIDING FOR A
REPEALING CLAUSE; AND PROVIDING FOR THE EFFECTIVE DATE
THEREOF.
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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
City of Baytown's Home Investment Partnerships ( "HOME ") Homeowner Rehabilitation
Assistance ( "HRA ") 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resolution are hereby repealed, provided, however, that such repeal shall be only to the extent of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 affirmative of the City Council of the
City of Baytown, this the 14th day of July, 2016.
STEPHEN H. DONCARLOS, , ayor
AT ST:
LETICIA BRYSCH, ' Clerk
APPROVED AS TO FORM:
c/
NACIO RAMIREZ, SR., C ty Attorney
R: Karen' +.Files City Council`, Resolutions\2016Uuly I4\AdoptHomeBuyersAssistanceProgcamGuidelines .doc
Exhibit "A"
HOME INVESTMENT PARTNERSHIPS
( "HOME ") HOMEOWNER REHABILITATION ASSISTANCE
( "HRA ") PROGRAM GUIDELINES
The Texas Department of Housing and Community Affairs ( "TDHCA ") Home Investment Partnerships
Program ( "HOME ") provides formula grants to localities to fund a wide range of activities including
building, buying, and/or rehabilitating affordable housing. This program was designed to reinforce the
principles which form the basis of community development. The flexibility of the HOME Program
empowers people and communities to design and implement strategies tailored to their own needs and
priorities.
The program requirements are based on homeownership 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). If the home is beyond repair, the program will assist with reconstruction.
Cosmetic repair items are considered only after all code items have been corrected. The HRA program
operates on a first come, first served basis, however there is a waiting list that begins once funds for the
year have been used. The homeowner shall complete the application process, consistent with these
guidelines and Texas Department of Housing and Community Affairs HOME Investment Partnership
Program ( "HOME ") Reservation System Participant Agreement and the Homeowner Rehabilitation
Assistance ( "HRA ") Set -Aside #102262 (10 TAC § §23.30 -32), and return the application and all required
documentation to the Planning and Development Services Department, Community Development
Division.
The HRA currently provides, in part, the following types of assistance:
A. Up to $40,000 for rehabilitation; and
B. Up to the lesser of $78 per square foot or $85,000 for Reconstruction (Households of
six or more persons the lesser of $78 per square foot or $90,000)
APPLICATON REQUIREMENTS
The application for participation in the HRA must be completed by the homeowner(s) and shall include
appropriate documentation to verify the following:
I. Eligible applicant/homeowner status.
A. Composition of Household: Household composition should include all persons who
occupy the applicant's housing unit at the time of application. Documents shall
include, but will not be limited to, information to verify all of the following for all
household members:
1. Relationship to applicant: The household 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;
2. Applicant must provide clear, legal title to the property (note: a Contract for
Deed will not satisfy this requirement).
B. Household Income: The applicant's household annual gross income must not exceed
the maximum income limits calculated each year based on HUD's guidelines, and
eighty percent (80 %) of the area median income of residents of the Houston Primary
City of Baytown HRA Guidelines
Metropolitan Statistical Area. The current area median income guidelines are
available in the Community Development Office. Documentation for this eligibility
requirement shall include, but will not be limited to, all of the following that apply
for ALL household members:
1. Full amount, before any payroll deductions, of wages and salaries, overtime
pay, commission, fees, tips and bonuses, and other compensation for
personal services
2. The net income from the operation of a business or profession;
3. Interest, dividends, and other net income of any kind from real estate,
personal property or other investments;
4. The full amount of periodic payments received from Social Security,
annuities, insurance policies, retirement funds, disability or death benefits
and/or other similar types of periodic receipts, including a lump -sum amount
or monthly amounts;
5. Payments in lieu of earnings, such as unemployment, disability
compensation, worker's compensation; and
6. All other sources of income such as welfare assistance, alimony, child
support, asset information and regular contributions /gifts.
II. Eligible Homes.
Eligible homes must meet the following criteria; proof of compliance may be required if
necessary:
A. Located within the city limits of the City of Baytown;
B. Primary Residence: The existing homeowner must use the property as their primary
residence or homestead;
C. Zoning and other land use regulations: The property must be in compliance with all
local government zoning ordinances and permitting processes;
D. Home -based businesses: Properties having any area dedicated exclusively for
business purposes are not eligible for assistance; and
E. Clear /Legal Title: Properties subject to any pending legal proceedings, such as
divorces, lawsuits, foreclosures, or seizure by local, state, or federal authorities, are
not eligible for assistance.
III. Eligible Repairs.
A. The rehabilitation, removal or replacement of elements of the dwelling structure,
including basic systems, and of the improvements to the property such as fences,
steps, walkways and driveways. Basic systems includes such items as furnaces, water
heaters, fixed electrical equipment, sanitary fixtures and other items necessary to
meet all applicable local building codes;
B. The HRA assistance will assist with additional or enlarged bedrooms only if required
by all applicable local building codes;
C. Lead -based paint hazard elimination: Such hazards shall be eliminated according to
regulations implementing Section 302 of the Lead Base Paint Poisoning Prevention
Act;
D. If funds permits, cosmetic work will be considered after all code violations and all
applicable local building codes requirements are met; and
E. Rehabilitation of a manufactured housing unit (MHU) is not eligible.
IV. Ineligible Costs.
A. Rehabilitation/reconstruction assistance shall not be provided for:
City of Baytown HRA Guidelines 2
1. The finishing of unfinished spaces not required to meet applicable local
building codes;
2. Auxiliary buildings such as workshops, detached laundry rooms, tool sheds,
garages, carports or certain attached/detached appurtenances; and
3. Any repairs or rehabilitation work not listed on the Work Write -Up or not
authorized through an approved change order.
B. Relocation and storage costs.
C. The HRA will not assist with:
1. Payment or refinancing of existing debt (mortgages, past due utility
payments, home improvement loans);
2. Utility reconnection fees;
3. Payment of local, state or federal taxes; and
4. Acquisition of land.
GENERAL INFORMATION ON THE
REHABILITATION PROCESS
The application process begins with the completion of a preliminary application and submitting of all
supporting documents by the existing homeowner. Community Development staff will review all
documents to determine eligibility and placement of the applicant onto the waiting list. The waiting list is
processed in the order received. Placement onto the waiting list does not guarantee assistance. Once the
applicant's name reaches the top of the waiting list:
A. Staff will contact the homeowner to update all documents including household composition
and income documentation. If six (6) months has lapsed since the preliminary application was
filed, a new application will be necessary.
B. Staff will invite the applicant to a mandatory Homeowners Workshop. At this Workshop, the
homeowner will receive education on maintenance and responsibilities before and after the
work is completed. At this time, the homeowner will learn what he /should expect during the
rehabilitation/reconstruction process and will receive an estimated timeline for construction.
C. Staff will complete a preliminary inspection and Work Write -Up. Staff will walk through the
interior and exterior of the structure and note any deficiencies including a lead assessment;
D. Staff will complete a bid package and place the work out for bids in accordance with City,
State, and Federal procurement procedures;
E. Bids will be awarded based on the City of Baytown's Purchasing Guidelines; and
F. Once bids are awarded, the homeowner and contractor will sign applicable contracts at a
Preconstruction Conference which will be scheduled by the Community Development Staff.
Once these steps have been completed, work should begin on the home within ten (10) days of the date
the contracts are executed. Depending on the scope of the project, the work will take approximately
forty-five (45) to sixty (60) working days. A working day is an eight (8) hour day, Monday through
Friday, excluding holidays. The work schedule may be adjusted for inclement weather.
The City of Baytown's HRA is a voluntary program. On some occasions, it may be necessary to move
out of the home during the course of the work as the repairs can generally be completed in less time if the
homeowner has somewhere else to stay at his/her expense; the City of Baytown does not pay for
relocation or storage expenses.
Prior to a reconstruction, the homeowner shall request a temporary disconnect of his/her utilities so that
the utilities can be transferred to the contractor during the time of the reconstruction. Upon completion of
City of Baytown HRA Guidelines
the reconstruction, the homeowner shall have his/her utilities reconnected to resume service. During an
occupied rehabilitation the homeowner should be prepared for times when the contractor will need to
disconnect utilities to safely perform required repairs.
Prior to any work being done, it is the homeowner's responsibility to remove pictures from the walls,
pack away breakable items, and remove articles from closets and cabinets as needed based upon the
extent and location of the work to be performed. The homeowner is responsible for breakage or loss of
personal items. It is also the homeowner's responsibility to move the furniture. Relocation and storage
fees will be the responsibility of the homeowner. The homeowner shall secure all pets during the
inspection, write -up, and rehabilitation process.
The homeowner may be required to replace the kitchen stove if the plumbing inspector determines that it
will not meet the applicable code requirements. If all of the burners, pilot lights, and broiler are not in
good working order, the inspector cannot approve the final gas inspection and the utility provider will not
resume services. The HRA may cover the cost of an energy efficient range and/or refrigerators. The
homeowner shall be responsible for any deposits or back payments to the utility providers.
The contractor will furnish a one -year warranty on all the repairs made. If the homeowner requires
warranty assistance, he /she 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 dame es caused b homeowner abuse normal wear and tear, weather, neglect, or intruders.
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, Community Development Senior Program
Manager, Director of Planning and Development Services and TDHCA shall sign all change orders
necessitated by changes in the scope of the project.
The Code Enforcement Officer/Housing Inspector, the Housing Specialist and the contractor will only
speak with the person(s) who signed the contract regarding the project. If the need arises to speak to the
contractor, the homeowner shall contact the Code Enforcement Officer/Housing Inspector or the Housing
Specialist. The homeowner shall not interfere with the work of the contractor. The contractor and his/her
employees shall not be discriminated against on the basis of religion, race, national origin, or gender. The
homeowner shall not make any side agreements with the contractor and/or shall not have any additional
work performed on the house during the rehabilitation process.
The City of Baytown shall act as the homeowner's representative throughout the entire course of
rehabilitation.
City of Baytown HRA Guidelines 4
RESALE/RECAPTURE and OTHER PROVISIONS
Refer to the Texas Department of Housing and Community Affairs HOME Investment Partnership
Program ( "HOME ") Reservation System participant Agreement and the Homeowner Rehabilitation
Assistance ( "HRA ") Set -Aside #102262 (10 TAC § §23.30 -32) for further guidance on the HRA.
GENERAL PROGRAM INFORMATION
Violating the guidelines in any manner or falsifying information on applications or any other applicable
document constitutes violation of the HRA Agreement and the homeowner will be disqualified from the
HRA and all other 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 make changes to these guidelines as necessary
to be consistent with the current HOME Program of TDHCA.
City of Baytown HRA Guidelines