CC Resolution No. 1502 2812
RESOLUTION NO. 1502
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, ADOPTING THE BASIC HOME IMPROVEMENT PROGRAM
GUIDELINES; CONTAINING A SAVINGS 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 Basic
Home Improvement Program Guidelines. The guidelines as amended are 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 declares that the
amended guidelines referenced in Section 1 hereof shall not be effective until October 1, 2001, but
shall thereafter remain in effect until hereinafter amended or repealed.
Section 3: If any provision, section, exception, subsection, paragraph, sentence, clause
or phrase of this resolution or the application of same to any person or the set of circumstances, shall
for any reason be held unconstitutional, void or invalid, such invalidity shall not affect the validity of
the remaining provisions of this resolution or their application to other persons or sets of
circumstances and to this end all provisions of this resolution are declared to be severable.
Section 4: 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 12'h day of July, 2001.
/Z& 4
PETE C. ALFARO, Mayor
ATTEST:
GA Y W SMITH, City Clerk
APPROVED AS TO FORM:
ACIO RAMIREZ, SR., Attorney
c:kth271\eityeouncil\resolutions\BmicliomelmprovementProgramGuidlines071201
Basic Home Improvement Program (B-HIP)
Guidelines
I. PURPOSE
The Basic Home Improvement Program is sponsored by the City of Baytown and
administered through its Planning and Community Development Department.
The program is funded through the City of Baytown's Community Development
Block Grant. The goal of this program is to assist low to moderate homeowners
with code compliance repairs to their principal residential structures, such as
electrical, plumbing, HVAC, foundation, and roof repair.
IL PROGRAM DESCRIPTION
All applicants are required to provide proof of eligibility for the program.
Approved applicants are eligible to receive up to five thousand dollars ($5,000) in
assistance for code compliance repairs. Applicants will be served on a first-come,
first-serve basis.
III. ELIGIBILITY REQURIREMENTS
All potential participants must provide the appropriate documents to verify the
following:
1. Applicant must reside within Baytown city limits;
2. Applicant must own the home;
3. Applicant must occupy the home as primary residence;
4. 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
Primary Metropolitan Statistical Area;
5. Applicant must show proof of homeowners' insurance; and
6. Applicant cannot have received previous assistance through the Basic
Home Improvement Program or Owner-Occupied Housing Rehabilitation
Program.
IV. DEFINITIONS
Accessory Structures: structure that is subordinate to and serves a principal
residential structure; is subordinate in area, extent and purpose to the principal
residential structure served; and contributes to the comfort, convenience or
necessity of occupants of the principal residential structure.
Annual Gross Income: wages listed on annual W-2 tax form in addition to the
following applicable income sources including, but not limited to, all
unreported wages, salaries, tips, commissions, overtime, self-employment
wages, farm self-employment wages, part-time income, unemployment
benefits, stock/bond interest and dividends, net rental income, estate or trust
funds, Social Security awards, disability benefits, retirement pensions,
Supplemental Security Income (SSI), Aid to Families with Dependant
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Children (AFDC), survivor pensions, veteran benefits, child support, and
alimony.
Applicant Household: the household that is applying for the Basic Home
Improvement Program.
Assistance Provided: all assistance acquired through the program by the
homeowner and all inspections performed by Staff through the program.
City: the City of Baytown, Texas, its officers, agents, representatives and
employees.
City of Baytown's Lien: the legal claim against a property in the amount of
the Basic Home Improvement Program Assistance Loan that must be paid to
the City of Baytown in the pro-rated amount if the homeowner is no longer in
compliance with the terms of the Owner-Lien Agreement. This lien is
subordinate to the lender's mortgage lien.
Code Compliance Repairs: repairs to the principal residential structure that
brings items into compliance with Chapter 18 and Chapter 26 of the City of
Baytown's Code of Ordinances, excluding insect, rodent, and vermin control.
Repairs may include, but not limited to, electrical, plumbing, roof, HVAC,
and foundation.
Homeowner: person or persons whose name or names appear on the deed as
the owner of the home. Persons purchasing their home via a Contract for
Deed will not be eligible for this program
Household: all persons who occupy a housing unit as permanent residents.
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.
Maximum Income: the maximum gross income, eighty percent (80%) of the
area's median income, allowed for program eligibility. The scale is calculated
according to Housing and Urban Development's (HUD) guidelines using the
Houston Primary Metropolitan Statistical Area's median income.
Principal Residential Structure: single-family, detached dwelling unit,
excluding a manufactured or mobile home, that is occupied as a residence and
includes facilities for sleeping, cooking, and sanitation. The term does not
include accessory structures.
Staff: any member of the Planning and Community Development office
charged with administering the Basic Home Improvement Program.
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V. APPLICATION PROCESS
1. Interested homeowners will obtain an application and the guidelines from
the Planning and Community Development office. Staff will explain the
program requirements and answer any questions regarding the program.
2. The applicant is required to submit to Staff all documents necessary to
determine eligibility when returning the application. On the completed
application, the applicant is to specify the type of repairs that he/she needs.
3. Staff will review the application and notify applicant of eligibility status,
which is contingent on fulfilling all requirements of the application
process. At this time, Staff will schedule an inspection.
4. Staff will conduct a site inspection determining the applicant's need for
the repairs. Code Compliance repairs will be eligible. Note that the Basic
Home Improvement Program will not provide assistance for any cosmetic
repairs.
5. Staff will notify the applicant of the repairs that will be performed with the
assistance provided. Any decision made by Staff will be final.
6. Staff will assist the applicant to acquire one (1) bid from at least three (3)
contractors for the proposed repairs. All bids are to be submitted to the
office of Community Development, a minimum of three bids are to be
submitted. Staff will choose the lowest, most responsive bid submitted.
7. The applicant must sign the Contract Agreement and the Owner-Lien
Agreement with the City of Baytown stipulating the requirements of the
five (5)year forgivable loan.
8. The contractor chosen must meet contractor requirements for the City of
Baytown Community Development Division to be eligible to perform the
work outlined in the Work Write-Up. The contractor must also sign the
Contract Agreement.
9. The contractor must start work on the home within ten (10) days of
signing the Contract Agreement. The contractor will have thirty (30) days
from the start date of the project to complete any and all repairs. At the
discretion of Staff, extra time may be allowed for inclement weather or
other circumstances.
10. Any homeowner who falsifies information will be disqualified from this
program and all other programs offered by the Community Development
Division.
VI. HOMEOWNERS' RESPONSIBILITES
1. Furnish Staff with any information needed to determine eligibility.
2. Immediately inform Staff of any changes in information previously
provided any time during the program process. If such change affects the
applicant's eligibility, the City in its sole discretion may terminate the
code compliance repair projects.
3. Properly maintain all repairs provided through the Basic Home
Improvement Program to ensure that the repairs remain code compliant.
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4. Remain as owner-occupant of the home for at least five (5) years after
receiving assistance. The owner-occupant must also complete an annual
update form provided by the City of Baytown and return to Staff by the
date specified.
5. Adhere to all requirements outlined in the Owner-Lien Agreement.
6. Adhere to all requirements outlined in the guidelines.
VII. CONTRACTORS' RESPONSIBILITIES
1. Complete all repairs outlined in the Work Write-Up.
2. Adhere to all requirements outlined in the Contract Agreement.
3. Complete entire project within the allotted time.
4. Adhere to the Guidelines for Contractors.
VIIL SECURITY
1. The assistance provided through the Basic Home Improvement Program
will be secured by a five (5) year lien on the property subordinated to the
mortgage lien.
2. Forgiveness of the assistance provided will be pro-rated yearly for five (5)
years. Twenty percent (20%) of the total assistance provided will be
forgiven at the end of each year and completely forgiven at the end of the
fifth year.
3. During the five (5) year period, upon sale, transfer of title, failure to
maintain completed code compliant repairs, or cessation of owner-
occupied status, as defined in the Owner-Lien Agreement, the unforgiven
balance of the assistance provided shall be due within sixty (60) days and
payable to the City of Baytown. If not paid within the time specified,
interest will be accrued at a rate of one percent(1%) each month.
4. In no case will the assistance provided be assumable by the next
purchaser or occupant.
5. In the event the homeowner refinances the original mortgage loan and
the new lender does not accept the City's lien, the pro-rated share of the
assistance provided must be repaid before the lien is released.
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