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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.