CC Resolution No. 1289 2486
RESOLUTION NO. 1289
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, APPROVING THE COMMUNITY DEVELOPMENT HOUSING
REHABILITATION PROGRAM'S GUIDELINES FOR CONTRACTORS;
APPROVING THE COMMUNITY DEVELOPMENT HOUSING
REHABILITATION PROGRAM'S GUIDELINES FOR HOMEOWNERS; 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 approves the
Community Development Housing Rehabilitation Program's Guidelines for Contractors, which is
attached hereto as Exhibit "A" and incorporated herein for all intents and purposes.
Section 2: That the City Council of the City of Baytown, Texas, hereby approves the
Community Development Housing Rehabilitation Program's Guidelines for Homeowners, which is
attached hereto as Exhibit "B" and incorporated herein for all intents and purposes.
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 council meeting of September 12, 1996.
C Ate`
PETE C. ALFAZO, Mayor
ATTEST:
EILEEN P. HALL, City Clerk
APPROVED AS TO FORM:
J64ACIO RAMIREZ, SR. 'ity Attorney
aklhMoity aouncil\resolutiow\HousingRehab.guidelines
GUIDELINES FOR CONTRACTORS
The Housing and Community Development Act of 1974 provides fends 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 Housing
Rehabilitation Program is to encourage the rehabilitation and conservation of the community's
older housing stock.
I. BIDDING
A. All bids must be itemized and the bid document must be complete. Failure to bid
on each item in the work write-up or failure to submit a complete bid document
shall cause the bid to be rejected.
B. The Community Development Housing Rehabilitation Specialist will total the
bids for each item. The total amount bid will be considered the sum of the bids
for each item in the work write-up, or the amount a contractor places on the
coversheet of the work write-up, whichever is lower. All contractors should
check their addition carefully.
C. Contractors may not substitute materials not described in the specification book
without prior written authorization by the Community Development Housing
Rehabilitation Specialist. If, during construction, materials are substituted
without such authorization, the materials must be removed and replaced at the
Contractor's sole expense.
D. It is the Contractors sole responsibility to prove they are a responsible bidder.
This includes beginning and completing all projects within the contract time,
completing warranty work in a timely manner, following the guidelines and
specifications as outlined, and keeping a clipboard with the write-up available at
all times for the workmen and inspectors. This also includes proof of payment to
all sub-contractors, and having the Contractor's application properly filled out.
E. In the event of a reconstruction project totalling $25,000 or more, a payment bond
shall be required.
II. CONTRACTS
A. Contracts shall be signed by the Contractor within ten(10) working days of the
acceptance of the bid by the City Council of the City of Baytown. The Contractor
submitting the winning bid will be notified in writing by the Community
EXHIBIT A
Development Housing Rehabilitation Specialist. It is the Contractor's
responsibility to ensure that the contract is signed within the above- referenced
time frame. Delays caused solely by the Community Development Office or the
homeowner, with no fault whatsoever of the Contractor, may entitle the
Contractor to an extension to the time limit upon the approval of the Community
Development Housing Rehabilitation Specialist.
B. The Contractor shall begin work within ten (10) days of the date of the contract
is executed by the City of Baytown. Failure to do so may result not only in the
termination of the contract but also in the imposition of penalties and/or
damages to which the city may be entitled. If the contract is terminated, the
contract may be awarded to the next lowest bidder. The homeowner, with the
written approval of the Community Development Housing Rehabilitation
Specialist, may grant reasonable time extensions. It is the Contractor's
responsibility to notify the homeowner and the Community Development
Housing Rehabilitation Specialist in writing if a delay is anticipated and the
reason for the anticipated delay. Probation and/or suspension from the
program may, at the sole discretion of the Director of Planning and Community
Development, or his/her designee, be imposed for delays if the Contractor fails to
notify the homeowner and the Community Development Housing Rehabilitation
Specialist and to obtain written approval of an extension of time. Probation shall
be for a period of sixty(60) days and suspension shall be for a period of ninety
(90) days. A contractor who repeatedly proves not to be a responsible bidder may
be placed on the United States Department of Housing and Urban Development's
Debarred List. A Contractor "who is debarred or suspended shall be excluded
from Federal financial and nonfinancial assistance and benefits under Federal
programs and activities. Debarment or suspension of a participant in a program
by one agency shall have government wide effect". 24CFR § 24.100.
C. Contractors shall obtain workers' compensation, general liability
insurance and all other insurance required in contract before the contract will be
signed by the city. The Contractor shall provide a certificate of insurance
evidencing the required insurance.
D. The Contractor shall provide in writing to the Community Development Housing
Rehabilitation Specialist names, addresses, and phone numbers of all sub-
contractors.
E. Relationship between the Homeowner and the Contractor- The Contractor
should treat the homeowner with respect. A good relationship with the
homeowner goes a long way toward satisfying the City. The Contractor shall not
do any additional work for the homeowner during the contract period unless a
change order is issued by the City of Baytown.
F. Relationship between the Housing Rehabilitation Specialist, the Contractor, and
Homeowner- The Community Development Housing Rehabilitation Specialist
will mediate and, if necessary, resolve disputes between the homeowner and
Contractor. The decision of the Community Development Housing Rehabilitation
Specialist shall be final and binding upon both the homeowner and contractor.
Any changes to the work write-up must be approved in writing by the Community
Development Housing Rehabilitation Specialist before the work is started. The
Contractor agrees by his participation in this program that all such work not pre-
approved will be free of charge and the contractor will not seek recovery for the
same. The Community Development Housing Rehabilitation Specialist reserves
the right to change the write-up as necessary as work progresses. If changes are
necessary that were not in the original write-up, the contractor will be
compensated for the change.
III. INSPECTIONS
A. The Director of Planning and Community Development and the Community
Development Housing Rehabilitation Specialist and/or the Chief Building
Official, or their respective designees, shall have the right to inspect the
contractor's work at any time. Work shall be of an acceptable quality and
workmanship as determined by the Director of Planning and Community
Development, Chief Building Official, or his/her desginee. Substandard work
shall be rejected. The Community Development Housing Rehabilitation
Specialist, along with all appropriate inspectors and personnel of the City shall
make a final inspection of the work. The work must be accepted by the City
before final payment will be made.
B. All required permits must be obtained by the Contractor before any work is
started. As stated in the work write-up and contract, the Contractor is responsible
for obtaining all required permits (building, electrical,plumbing, hvac, etc.)
before any work is started. Before receiving a building permit, however, the
Contractor is responsible for obtaining a zoning clearance through the Planning
Department.
IV. PAYMENT
A. The Contractor shall obtain a signed statement of completion(form furnished by
the Community Development Housing Rehabilitation Specialist) from the
homeowner before final payment will be made. It is the contractor's responsibility
to secure the homeowner's signature on this form. If at all possible, the statement
of completion will be signed at the final inspection. In cases where disputes arise
and the homeowner refuses to sign the statement of completion, the Director of
Planning and Community Development, or his/her designee, shall resolve the
problem. Such resolution by the Director of Planning and Community
Development, or his/her designee, shall be final and binding on both the
homeowner and the Contractor.
B. All damage claims resulting from the actions of a contractor or her/his employees
shall be resolved before final payment is made.
C. Payment shall be as specified in the contract.
D. Contractors are not to call City Hall or the Finance Department concerning
payment. Payments will be processed in accordance with the City's standard
payment policies. Telephone calls will not speed up the process. Questions
concerning payment should be directed to the Community Development Housing
Rehabilitation Specialist. The Finance Department has been instructed to refer all
calls concerning payment to the Community Development Housing Rehabilitation
Specialist.
E. Change orders will not exceed 10% of the contract price.
F. All requests for payment must be made to the Community Development Housing
Rehabilitation Specialist by the Contractor no later than 4:00 p.m. on Friday for
the check to be ready on Friday of the following week.
V. MISCELLANEOUS
A. Contractors who fail to keep the premises reasonably clean and neat as
determined by the Community Development Housine Rehabilitation
Specialist may be placed on probation or suspension and/or fined by the
City of Baytown Health Department. The debris and litter on the premises shall
be neatly piled and clear of the work area. Contractors will not receive payment
until area is clear of debris.
GUIDELINES FOR HOMEOWNERS
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 Housing
Rehabilitation Program is to encourage the rehabilitation and conservation of the community's
older housing stock.
Every year the City of Baytown receives a Community Development Block Grant(CDBG) from
the United States Department of Housing and Urban Development(HUD). The Community
Development Office of the City of Baytown administers the Housing Rehabilitation Program,
which is a part of this total grant. The program requirements are based on home ownership and
annual income with no age restrictions. The income guidelines include all sources of income for
all members of the household. The purpose of this program is to assist homeowners with much
needed home repairs of code violations, such as electrical, plumbing, foundation, and roof repair.
Cosmetic repair items are considered only after all code items have been corrected. The staff of
the Community Development Housing Rehabilitation Program strives to process all applications
and begin repairs to the home in the shortest time possible. The Community Development
Housing Rehabilitation Program operates on a first-come, first-serve basis. There is a waiting
list. The homeowner needs to complete the following application process and return the
application to the Community Development Office.
Applicants whose home has been rehabilitated under the Community Development
Rehabilitation Program previously shall only be eligible for one emergency repair project not to
exceed $5,000.00 or $6,000.00 for emergency repair projects that include modifications for the
disabled. Modifications for the disabled shall include access ramps, grab bars, and widening of
doors. Emergency repair items shall be determined by the Director of Planning and Community
Development, or his/her designee. Emergency repair items shall not include any cosmetic work.
REQUIREMENTS FOR THE APPLICATION REVIEW
I. The homeowner must complete and return the Community Development Block Grant
Housing Rehabilitation application including the following information:
A. Income information for all owners and occupants of the house: Please
submit all of the following that apply:
I. A copy of latest Income Tax Return of all occupants of the home..
2. Social Security Award Letter stating amount of monthly Social Security or
S.S.I. check for all occupants, if applicable.
EXHIBIT B
3. Retirement verification for all occupants, if applicable.
4. Proof of interest from investments for all occupants, if applicable.
5. Proof of child support, alimony, or separate maintenance, if applicable.
6. Award letter from Veteran's Administration, if applicable.
7. Verification of self-employment wages, if applicable.
8. Food stamp award letter, if applicable.
9. Welfare verification, if applicable.
10. Proof of any other sources of income.
11. Copy of bank statements or deposit slips for the past three months, if
applicable.
II. Proof of ownership. Please submit all of the following that apply:
1. A copy of the Deed or Deed of Trust on your home and on any other
property owned.
2. Verification from the holder of the mortgage company that house
payments are current.
III. Proof of marital status shall be required in instances of divorce, widow, or widower.
IV. In order to qualify, the homeowner shall be in compliance with the following chapters of
the City of Baytown Code of Ordinances as determined by the City of Baytown Code
Enforcement Officer for that area. The homeowner shall continue to be in compliance
until the completion of the project of the following:
1. Property clear of debris so as not to constitute a public nuisance as stated
in Chapter 33,Urban Rehabilitation Standards,
2. Property shall be clear of all junked and abandoned vehicles per Chapter
28, Article 9, City of Baytown Code of Ordinances,
3. All buildings, other than the residence, on the property shall be secure and
be in compliance violation of Chapter 33, Urban Rehabilitation Standards,
and
4. Property shall be free and clear of all objects or conditions that would
constitute a possible and probable medium of transmission of disease to or
between human beings as per Chapter 15, Health and Sanitation.
GENERAL INFORMATION ON THE REHABILITATION PROCESS
Once your application has been reviewed and it has been determined that you qualify for the
Community Development Block Grant Housing Rehabilitation Program, the Community
Development Officer will take the following steps:
1. Meet with homeowner to discuss any known problems with the home,
including leaking roof, faulty electrical, or faulty plumbing.
2. Walk through and evaluate interior and exterior of structure.
3. Walk through with the Chief Building Official, or his/her designee for
final evaluation of code compliance issues.
4. Prepare a bid package and advertise for bids.
5. Conduct a pre-bid conference to ensure that the rehabilitation
specifications are understood by all bidders.
6. Open bids and present the bids to City Council who will award the
contract to the lowest responsible bidder.
7. Prepare all other necessary forms for execution by the homeowner,
contractor, and Community Development Housing Rehabilitation
Specialist. These forms include:
a. Prepare contract for execution,
b. Owner Lien Agreement,
C. Agent Agreement,
d. Right to Financial Privacy Act,
e. Notice to Applicants,
f. Non-discrimination Clause,
g. Disposition of Property,
h. Proceed Order, and
i. Work Write-up Agreement.
9. All other forms necessary.
Once these steps have been completed, work will begin on your home within ten(10 ) days of
the date the contract is executed. The work takes approximately thirty (30) to forty-five (45)
working days. A working day is an eight (8) hour day, Monday through Friday, excluding
holidays. The work schedule will be adjusted for increment weather.
The City of Baytown's Housing Rehabilitation Program is an owner-occupied program. Neither
the contractor nor the Community Development Housing Rehabilitation Specialist 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. There will be a period of
time when the utilities may be disconnected. This can be a great inconvenience to the owner.
Prior to any work being done, it is the homeowner's responsibility to remove pictures from
walls, pack away breakable items, and remove articles from closets and cabinets. The
homeowner is responsible for making sure personal items are in a safe place. The Contractor is
not responsible for breakage or loss of personal items. It is also the homeowner's responsibility
to move the furniture. The homeowner shall secure all pets during the 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 Entex will not turn on the gas.
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 carpet
and vinyl floor covering. Ceramic tile will not be installed. Floor covering will be replaced if it
is ripped or tom or has holes it. The floor covering will not be replaced merely because the
homeowner no longer likes it.
The City of Baytown's Housing Rehabilitation Program will only add a room or make a room
larger if the house does not meet code. The City's code requires a certain number of square feet
per person. Adding or enlarging a room is only done in extreme cases.
The City of Baytown's Housing Rehabilitation Program does not install cable or telephone lines.
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 Office 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, or intruders.
RELATIONSHIP BETWEEN THE CITY OF BAYTOWN, THE CONTRACTOR
AND THE HOMEOWNER
The City of Baytown will by represented by the Director of Planning and Community
Development, or his/her designee, when it is necessary to resolve disputes between the
homeowner and contractor. The resolution of the Director of Planning and Community
Development, or his/her designee, shall be final and binding upon both the homeowner and
contractor. The Director of Planning and Community Development, or his/her designee, has the
right to change the write-up as necessary as work progresses. The homeowner, contractor,
Community Development Housing Rehabilitation Specialist, and the City Manager shall sign the
change orders necessitated by a change in the scope of the project. The staff of the Community
Development Housing Rehabilitation Program and the Contractor will only speak with the
person/persons who signed the contract.
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 schedule
below. In the event of the death(s) of the owner(s) of the property at the time of the application,
the estate will be required to reimburse the city the following amounts if the death occurs within:
I. The first twelve (12) months - 100% of the total rehabilitation
project
2. Thirteen(13) to twenty-four(24) months - 80% of the total rehabilitation
project.
3. Twenty-five (25) to thirty-six (36) months - 60% of the total rehabilitation
project.
4. Thirty-seven (37) to forty-eight (48)months - 40% of the total rehabilitation
project.
5. Forty-nine (49) to sixty (60) months - 20% of the total rehabilitation project.
The lien will not be released until the appropriate payment is made by the estate as described
above. Emergency repairs will not constitute a lien being placed on the property.
GENERAL INFORMATION
Violating the guidelines in any manner constitutes violation of the contract and the homeowner
will be disqualified from the Housing Rehabilitation Program. Upon the determination by the
Director of Planning and Community Development, 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 Community
Development 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 and/or his designee, provided that the homeowner gives notice of appeal in
writing to the City Clerk no less than ten(10) days following the decision from which the
homeowner is appealing.
The owner(s) of the property shall be required to attend Community Development home
education classes including classes on maintenance, budgeting, and responsibilities of
homeownership.
RELATIONSHIP BETWEEN THE HOMEOWNER AND CONTRACTOR
The homeowner shall not telephone the Contractor, other than during working hours as specified
earlier. The homeowner shall not interfere with the work of the Contractor. The Contractor and
his/her employees shall not be discriminated against because of race, national origin, 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
will be done.