Loading...
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. *********see**aarr*****saaaaaaaaa*rrrr■r*..******s.*as***►**********«*►********** 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hereof shall not be effective until October 1, 2001, but shall thereafter remain in effect until hereinafter amended or repealed.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 1 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. 2 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. 3 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. 4