CC Resolution No. 2635RESOLUTION NO.2635
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resolution are hereby repealed, provided, however, that such repeal shall be only to the extent of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 affirmative vote of the City Council of the
City of Baytown, this the 27th day of February, 2020.
AT ST:
ETICIA BRYSCH, C Clerk
APPROVED AS TO FORM:
ACIO RAMIREZ, SR., City t ey
R:'.Karen\FileslCity Council Resolutions\2020\February 271CDBGOwner-OccupiedHousingRehabProgramGuidelines.doc
Exhibit "A"
Revised 01/13/2020
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. Up to $5,000 for Handicap/Disabled Modifications;
II. Up to $25,000 for Rehabilitation; and
III. Up to $100,000 for a 3-Bedroom Reconstruction.
An applicant or house that has previously received assistance under the Owner -Occupied
Housing Rehabilitation Program shall only be eligible for a handicap/disabled modification
project. An applicant or house that has received a handicap/disabled modification shall no
longer be eligible for the Owner -Occupied Housing Rehabilitation Program. 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.
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
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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. Documentation
shall include, but not limited to the following information for each person:
A. Copy of social security card;
B. Proof of marital status shall be required in instances of divorce, widow, or
widower; and
C. Verification of student status.
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 and fifty
percent (50%) of the area median income of residents of the Houston Primary
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:
A. Income tax returns for the past three years;
B. Social security award letter stating amount of monthly social security or
Supplemental Security Income (SSI) for all household members;
C. Unemployment verification for all non -working household members;
D. Proof of interest from investments for all household members;
E. Proof of child support, alimony, or separate maintenance;
F. Award letter from Veteran's Administration;
G. Verification of self-employment wages;
H. Food stamp award letter;
I. Welfare verification;
J. Employment verification for all working household members;
K. Verification of regular gifts/contributions;
L. Copy of the deed or contract(s) for deed to any other property/properties
owned by the applicant(s) or any other member of the household;
M. Copy of all checking and savings account(s) monthly statements for the
past three months; and
N. Proof of any other source of income.
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. Please submit all of the following that apply
for proof of ownership:
Owner-Occuvied Housing Rehabilitation Program, Page 2
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A. A copy of the deed on the home for which assistance is sought. (A copy
of a contract for deed or deed of trust will not fulfill Program
requirements);
B. Verification from the lienholder or the mortgage company that the
house payments are current;
C. Verification from the taxing entities that all ad valorem taxes are current;
D. Copy of current utility bills; and
E. Verification from the utility companies that all payments for utility services
are current.
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 his/her 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.
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"
GENERAL INFORMATION ON THE REHABILITATION PROCESS
Owner -Occupied Housing Rehabilitation Program, Page 3
Revised 01/13/2020
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 lowest responsible bidder;
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,
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 date the contract being executed. Depending on the scope of the project, the work will
Owner -Occupied Housing Rehabilitation Program, Page 4
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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 City of Baytown's Owner -Occupied Housing Rehabilitation Program is an owner -
occupied program. Neither the contractor, nor the Staff, can force the homeowner to move
during the course of the work. However, the repairs can generally be completed in less time if
the homeowner has somewhere else to stay at his/her expense. There will be a period of time
when the utilities may be disconnected, which may cause a great inconvenience to the
household. 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 repair work. 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 final gas
inspection and CenterPoint Energy will not turn on the gas. The homeowner shall be
responsible for any deposits or back payments to the utility providers.
The scope of work may include installing sheetrock or repairing existing sheetrock and
applying paint. If floor covering is to be installed, the homeowner will be given a choice
between a variety of materials, such as carpet and vinyl floor covering. Floor covering will
not be replaced merely because the homeowner no longer likes it. A fence may be installed at
the homeowner's request provided that (i) the maximum assistance limits specified above are
not exceeded and (ii) the Code Enforcement Officer/Inspector determines that fencing is
appropriate, e.g., there is no existing fence or the existing fence is in need of replacement. The
Code Enforcement Officer/Inspector will make the final determination on the type and
dimensions of the fencing to be installed.
The City of Baytown's Owner -Occupied Housing Rehabilitation Program will only add a
room or make a room larger if the house does not meet the requirements of the 2015
International Residential Code, as adopted by the City of Baytown, which requires a certain
number of square feet per sleeping quarters. Adding or enlarging a room is only done in
extreme cases.
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.
Owner -Occupied Housing Rehabilitation Program, Page 5
Revised OF 13 J2020
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,
Community Development Manager, 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. Staff and the contractor will only speak with the
person/persons who signed the contract regarding the project. If the need arises to speak to
the contractor, the homeowner shall contact the Code Enforcement Officer/Inspector or any
Community Development Staff. 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, age, disability, or gender. 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 shall act as the homeowner's representative throughout the entire course
of rehabilitation.
INFORMATION ON THE LIEN AGREEMENT
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 will be held liable to the City of Baytown for the amount of reimbursement
according to the following schedule:
➢ the first twelve (12) months - 100% 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 - 40% of the total rehabilitation project
➢ forty-nine (49) to sixty (60) months - 20% of the total rehabilitation project
Owner -Occupied Housing Rehabilitation Program, Page 6
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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 %) 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 - 100% 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 - 40% of the total rehabilitation project
➢ forty-nine (49) to sixty (60) months - 20% 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 (1 %)
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.
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
Owner-Occuied Housing Rehabilitation Program, Page 7
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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 (25%) of such limits as herein approved.
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Owner -Occupied Housing Rehabilitation Program, Page 8