CC Resolution No. 2078 - AdoptOwnerOccHousingRehabGuidelines RESOLUTION NO.2078
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS,ADOPTING THE CITY OF BAYTOWN'S OWNER-OCCUPIED
HOUSING REHABILITATION PROGRAM GUIDELINES;PROVIDING FOR
A REPEALING CLAUSE:AND PROVIDING FOR TIIE 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
City of Baytown's 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resolution are hereby repealed.provided,however,that such repeal shall be only to the extent of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 vo of the City Council of the
City of Baytown,this the 81h day of July.2010.
ter:.
ST HE DONCARLOS,yor
A T:;ti
LETICIA ty lerk
APPROVED AS TO FORM:
cJI(YNACIO RAMIREZ,SR.,z
Attorney
R:\haren\Files\CitN Council\Resolutions?010"Jule 8',Adoptoi%ner-Occupied}iousingRehahGuidelines.doc
Exhibit"A"
Revised 5/13/2010
OWNER-OCCUPIED HOUSING REHABILITATION
PROGRAM
The Housing and Community Development Act of 1974 provides funds for the 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 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
111.Up to$64,600 for a 2-Bedroom or 3-Bedroom Reconstruction.
An applicant and/or house that have previously received rehabilitation under the Owner-
Occupied Housing Rehabilitation Program shall only be eligible for a handicap/disabled
modification project.An applicant and/or house that have received a handicap/disabled
modification shall no longer be eligible for the Owner-Occupied Housing Rehabilitation
Program.If the estimated cost of repairs to bring the structure into code compliance exceeds
the maximum rehabilitation limits of$25.000.then the structure will not be eligible for
rehabilitation.
REOUIREMENTS FOR THE APPLICATION
The application for participatioin in the Owner-Occupied 1-lousing Rehabilitation Program
must be completed by the homeowners)and shall include appropriate documentation to
verify the following:
Owner-Occupied Housing Rehabilitation Program,Page I
Revised 5/13/2010
I.Composition of Household
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:
1.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 accounts)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-Occupied Housing Rehabilitation Program Page 2
Revised 5/13/2010
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.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 26"Urban Rehabilitation Standards"of the Code of
Ordinances of the City of Baytown;
B.Chapter 34"Environment."Article III"Junked.Wrecked.Abandoned
Property"of the Code of Ordinances of the City of Baytown;
C.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:
D.Chapter 42"Health and Sanitation"of the Code of Ordinances of the
City of Baytown;and
E.Chapter 130"Zoning."Article IV"Nonconformities,Supplementary
District Regulations."
Owner-Occugied I lousing Rehabilitation Program,Page 3
Revised 5/13/2010
GENERAL INFORMATION ON THE REHABILITATION PROCESS
Once an application has been reviewed,and it has been determined that you qualify for the
Owner-Occupied Housing Rehabilitation Program,the Housing Specialist and Code
Enforcement Officer/Inspector 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:
3.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 the Code Enforcement Officer/Inspector and Housing Specialist.These
forms include,but are not limited to:
a.Contract,
b.Owner Lien Agreement,
C.Intent to Place Lien.
d.Supplemental Side Agreement,
C.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.
Ommer-Occupied Housing Rehabilitation Program,Page 4
Revised 5/13/2010
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
take approximately forty-five(45)to sixty(60)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 Housing Specialist and/or Code
Enforcement Officer/Inspector can force the homeowner to move during the course of the
work.1-lowever.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 carpet and vinyl floor covering.Ceramic tile will not be installed.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 Chapter 26.
Section 26-226 of the Code of Ordinances,which requires a certain number of square feet per
sleeping quarters.Adding or enlarging a room is only done in extreme cases.
The City of Baytown's Owner-Occupied Housing Rehabilitation Program does not include the
installation of cable,air conditioning units.or telephone lines.
Q%Nner•nccupicd dousing Rehabilitation Program,Page 5
Revised 5/13/2010
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.
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 Senior Program Manager,and the Director of Planning and
Development Services shall sign the change orders necessitated by a change in the scope of
the project.The Code Enforcement Officer/Inspector,the Housing Specialist 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 the Housing Specialist.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,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
1.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
Owner-Occupied Housing Rehabilitation Program.Page 6
Revised 5/13/2010
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 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 Housing Specialist 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 tultill 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
y 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
Owner-Occupied Housing Rehabilitation Promm,Page 7
Revised 5/13/2010
a violation of the guidelines has occurred,the applicant(s)must repay the City of Baytown in
ful I 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
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 NLAKE CIIAINGES 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.
RAKaren\FileslCommunity DevelopmentlFlousing Rehabilitation PrograrnTroposed Guideline 2010.7.2.doc
0%%ner-Occupied Housing Rehabilitation Program,Page 8