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HomeMy WebLinkAboutRES.1411.11-02-1998 BILL N0. 98-216 RESOLUTION N0. �yj � A RESOLUTION ADOPTING THE CITY OF CAPE GIRARDEAU REHABILITATION GRANT PROGRAM GUIDELINES FOR HOMEOWNERS AND RENTAL PROPERTY OWNERS BE IT RESOLVED BY THE COUNCIL OF THE CITY OF CAPE GIRARDEAU, MISSOURI, AS FOLLOWS : ARTICLE 1 . The City Council of the City of Cape Girardeau, Missouri hereby adopts the City of Cape Girardeau Rehabilitation Grant Program Guidelines for homeowners and rental property owners . A copy of said Guidelines is attached to this Resolution and made a part hereof . PASSED AND ADOPTED THIS ,-j�l� UAY OF �;�,�;y}�}Q��` , 19��. A. . Spradling, III, May r ATTEST : `� s'`- ' �� �� � ��`f�� � i� , F � �/�}� i ,, �j : C X_ l ; c';;,,' Gayle . Conrad , ' ` Deputy City Clerk ; ,. ,�:, ,� , r,�`, q `'�J .. , CITY OF CAPE GIRARDEAU REHABILITATION GRANT PROGRAM GUIDELINES FOR HOMEOWNERS I. GENERAL A. This document sets forth eligibility and application requirements relating to the property and the applicant for a rehabilitation grant. A rehabilitation grant may be made only with respect to a property located within the approved Community Development activity area in the City of Cape Girardeau, Missouri. The property must need rehabilitation in order to meet the minimum standards of the City of Cape Girardeau. B. No member of the governing body of the locality and no other official, employee, or agent of the City Government who exercises policy, decision- making functions or responsibilities in connection with the planning and implementation of the Community Development program shall directly or indirectly be eligible for this program. This prohibition shall continue for one year after an individual's relationship with the City Government ends. C. Applications for rehabilitation grants will be accepted and processed in the order received. Completed applications will be assigned a case number when turned in to determine priority. II. APPLICANT REQUIREMENTS To be eligible to receive a rehabilitation grant, the applicant must be an individ ual or family who owns and occupies residential property within the project area. The individual or family must also own and occupy the residence prior to making application for a rehabilitation grant. III. INCOME LIMITS Eligible income limits for a rehabilitation grant shall be as defined in the current Department of Housing and Urban Development Section 8 family income limits determined by the following schedule: Family Size 1 2 3 4 5 6 7 8 Maximum Inconle 21,150 24,200 27,200 30,250 32,650 35,100 37,500 39,900 I2EHABILITATION GRANT PROGRAM GUIDELINES HOMEOWNERS Page 2 IV. LIMITATION ON AMOUNT OF GRANT For an applicant whose income does not exceed the above limits, the amount of the grant shall be the lesser of the maximum allowable grant of $15,000 or the actual (and approved) cost of the repairs and improvements necessary to make the property conform to the rehabilitation standards of the City of Cape Girardeau, Missouri. V. APPLICANT'S INCOME A. GENERAL. This portion sets forth the basis for establishing an applicant's income for the purposes of a rehabilitation grant to a residential property, taking into account the variations applicable to different applicants and properties. B. TYPE OF APPLICANTS. In order to make determinations with respect to eligibility for a rehabilitation grant, an applicant is an owner-occupant of a residential property located within the project area. For this purpose, an applicant must hold legal title to the property that is to be rehabilitated prior to making application. C. SOURCES OF FUNDS AND AMOUNTS COMPRISING APPLICANT'S INCOME. The following is a listing of the elements comprising income for purposes of a rehabilitation grant. Exclusions from income applicable in special circumstances are stated in paragraph (d). 1. Income of an applicant includes the income of the applicant, and the applicant's family. The applicant's faniily includes the applicant and any other person or persons related by blood, marriage, or operation of law, who share the same dwelling unit. If o�vnership of the property rests in more than one person, the applicant is each owner and family. The applicant's income, therefore, is the sum of the family income of all applicants. An applicant's income is established on an annual basis, at the time of applying for a rehabilitation grant, and includes: a. The applicant's earnings. b. Spouse's earnings, and earnings of all other members of the family who share the household, if the employment of the spouse or other family member is a definite characteristic of family life. Also included are any funds contributed or paid to the family member. KEHABILITATION GRANT PROGRAM GUIDELINES HOMEOWNERS Page 3 c. Other income regularly received by the applicant or his family from any source. d. Income Excluded 1. The income of an adult family member other than the applicant and spouse, who does not occup}� the same dwelling unit to be rehabilitated. 2. Title II of the Social Security Act, 42 U.S.C., 401 ct. Seq., permits, if certain conditions are met (see below), the payment of monthly benefits for educational purposes to the children of an individual entitled to disability or old age insurance benefits. The income attributed to these benefits should ordinarily be excluded from income in determining eligibility for a rehabilitation grant. The foregoing decision applies onl�- to the type of Social Security benefits cited. Also, there may still be circumstances in which even the Social Security benefits must be included in the applicant's income, for example, in the case where a child or its representative payee agrees to pay the applicant a stated sum on a regular basis for current maintenance. VI. REPAYMENT OF REHABILITATION GRANT IF PROPERTY IS SOLD If ownership or occupancy of the rehabilitated property by the grant recipient voluntarily ceases, then the following schedule for repayment shall apply: Less than 1 year from grant agreement date Full Amount Less than 2 years from grant agreement date 75% Repay Less than 3 years from grant agreement date 50% Repay Less than 4 years from grant agreement date 25% Repay Over 4 years from grant agreement date No Repay VIL LENGTH OF OWNERSHIP The unit must have been owned and occupied by the applicant prior to the date of application for a rehabilitation grant. REHABILITATION GRANT PROGRAM GUIDELINES HOMEOWNERS Page 4 VIII. PROPERTY ELIGIBILITY A. Unit Characteristics Owner-occupied units within the project area will be eligible for rehabilitation grants. Both units of a duplex are eligible for a grant if the one is an owner- occupied unit. Single family and duplex units are eligible. B. Location Units must be located in the project area which is bounded by Jefferson Avenue on the north; Fountain Street on the east; Shawnee Parkwa (New Highway 74) on the south; and Sprig� Street on the west. Units outside these areas which pose a health or safety hazard may be eligible for an emergency home repair grant. C. Condition Units must be able to comply with Section 8 Existing Housing Quality Standards at the completion of rehabilitation. D. Types of Improvements Any improvement required to bring the unit up to Section 8 Existing Housing Quality Standards and Local Housing Codes. Any improvements resulting in substantial weatherization. Exterior painting. All improvements must be physically attached to the property and permanent in nature. General properry improvements--These are improvements in excess of local code requirements and are specifically prohibited. Improvements of this type include additions for family rooms or dens, carports, air conditioning and the like. They are not eligible improvements for the rehabilitation program. REHABILITATION GRANT PROGRAM GUIDELINES HOMEO WNERS Page 5 IX. CONTRACTING REQUIREMENTS A. Contract Between the Homeowner and the Contractor The contract for rehabilitation will be let by the homeowner and will be between the homeowner and the contractor. The City will be a third party to the contract. B. Contracting Contracting will be done on a competitive bid basis. The City will prepare the bid package, and advertise and review all bids to determine if they are responsive and responsible. The homeowner will award the contract to the bidder. C. Change Orders All change orders to the bid specifications require the signatures of both the owner and the City Planner. D. Paint The owner may select the color of paint to be used. He/she will select the paint from paint chips and will initial the paint chip signifying his/her selection. Paint which matches the initialed paint chip will not be changed. E. Acceptance of Work In the event of any dispute between the owner and the contractor concerning the completion of the rehabilitation, the City Planner will work with both parties to negotiate a satisfactory solution. If such a solution cannot be found, the City shall be the final authority on when the job has been satisfactorily completed. X. COMPLAINT PROCEDURE Complaints concerning the rehabilitation grant program shall be in writing and addressed to Kent M. Bratton, City Planner. Mr. Bratton will contact you and attempt to resolve the problem. A written response will be made within fifteen (15) working days. If you are not satisfied with his response, you may file a complaint with Michael G. Miller, City Manager. His response will be in writing and will be made within fifteen (15) working days. CITY OF CAPE GIRARDEAU REHABILITATION GRANT PROGRAM GUIDELINES FOR RENTAL PROPERTY OWNERS I. GENERAL A. This document sets forth eligibility and application requirements relating to the property and the applicant for a rehabilitation grant. A rehabilitation grant may be made only with respect to a property located within the approved Community Development activity area in the City of Cape Girardeau, Missouri. The property must need rehabilitation in order to meet the minimum standards of the City of Cape Girardeau. B. No member of the governing body of the locality and no other official, employee, or agent of the City Government who exercises policy, decision- making functions or responsibilities in connection with the planning and implementation of the Community Development program shall directly or indirectly be eligible for this program. This prohibition shall continue for one year after an individual's relationship with the City Government ends. C. Applications for rehabilitation grants will be accepted and processed in the order received. Completed applications will be assigned a case number when turned in to determine priority. Priority will be given to owner-occupied units. II. APPLICANT REQUIREMENTS To be eligible to receive a rehabilitation grant, the residential property must be occupied by an LMI individual or family, and must be located within the project area. If the landlord and tenant meet the income guidelines, a grant will be awarded to the property owner. If the tenant meets the income guidelines and the landlord exceeds the income guidelines, a 50% grant will be awarded, matched by 50% from the landlord. The landlord has an option of signing a rent-freeze agreement or entering the unit in the Section 8 Rental Assistance Program to guarantee benefit to low and moderate income residents. III. INCOME LIMITS Eligible income limits for a rehabilitation grant shall be as defined in the current Department of Housing and Urban Development Section 8 family income limits determined by the following schedule: I�EHAI3ILITATION GRANT PROGRAM GUIDELINES RENTAL PROPERTY OWNERS Page 2 Family Size 1 2 3 -� 5 6 7 8 I��aximum Income �21,150 24,200 27,200 30,250 32,6�0 ; 35,100 37,500 39,900 IV. LIMITATION ON AMOUNT OF GRANT For an applicant whose income does not exceed the above liinits, the amount of the grant shall be the lesser of the maximum allowable ar�:.nt of $15,000 or the actual (and approved) cost of the repairs and improvements ne,:�ssary to make the property conform to the rehabilitation standards of the City of Ca�e Girardeau, Missouri. V. APPLICANT'S INCOME A. GENERAL. This portion sets forth the basis fo: establishing an applicant's income for the purposes of a rehabilitation grant to a residential property, taking into account the variations applicable to different applicants and properties. B. TYPE OF APPLICANTS. In order to make determinations with respect to eligibility for a rehabilitation grant, an applicant is an owner of residential rental property located within the project area. For thi� purpose, an applicant must hold legal title to the property that is to be rehabilitated prior to making application. C. SOURCES OF FUNDS AND AMOUNTS CO'�1PRISING APPLICANT'S INCOME. The following is a listing of the elements comprising income for purposes of a rehabilitation grant. Exclusions from ineome applicable in special circumstances are stated in paragraph (d). 1. Income of an applicant includes the incom:. of the applicant, and the applicant's family. The applicant's family in�ludes the applicant and any other person or persons related by blood, marriage, or operation of law, who share the same dwelling unit. If owner�nip of the property rests in more than one person, the applicant is each owner and family. The applicant's income, therefore, is the sum oi the family income of all applicants. An applicant's income is establishe� on an annual basis, at the time of applying for a rehabilitation grant, and i�cludes: a. The applicant's earnings. REHABILITATION GRANT PROGRAM GUIDELINES RENTAL PROPERTY OWNERS Page 3 b. Spouse's earnings, and earnings of all other zlembers of the family who share the household, if the employment of :he spouse or other family member is a definite characteristic of fami:y life. Also included are any funds contributed or paid to the family r_:�ember. c. Other income regularly received by the aF�licant or his family from any source. d. Income Excluded 1. The income of an adult faniily mem���r other than the applicant and spouse, who does not occupy th� same dwelling unit to be rehabilitated. 2. Title II of the Social Security Act, -�2 U.S.C., 401 ct. Seq., permits, if certain conditions are met � ;ee below), the payment of monthly benefits for educational pur��oses to the children of an individual entitled to disability or old �ge insurance benefits. The income attributed to these benefits sh�>uld ordinarily be excluded from income in determining eligibilit� for a rehabilitation grant. The foregoing decision applies only to the type of Social Security benefits cited. Also, there may still �e circumstances in which even the Social Security benefits -nust be included in the applicant's income, for example, in t'r_� case where a child or its representative payee agrees to pay the applicant a stated sum on a regular basis for current maintenance. VI. REPAYMENT OF REHABILITATION GRANT IF PROPERTY IS SOLD In the event the property is sold during the terms of th� grant agreement or is no longer occupied by an LMI resident, the owner(s) shall �ompensate the City in an amount set forth in the following repayment schedulc. provided, however, that should the purchaser agree, in writing, to all of the term� and conditions herein, the Grant Administrator may allow the purchaser to assur.=�= the obligations set forth herein. The following schedule for repayment shall appl�� Less than 1 year from grant agreement date Full Amount Less than 2 years from grant agreement date 75% Repay Less than 3 years from grant agreement date 50% Repay Less than 4 years from grant agreement date 25% Repay Over 4 years from grant agreement date No Repay REHABILITATION GRANT PROGRAM GUIDELINES RENTAL PROPERTY OWNERS Page 4 VII. LENGTH OF OWNERSHIP The unit must have been owned by the applicant prior to the date of application for a rehabilitation grant. VIII. PROPERTY ELIGIBILITY A. Unit Characteristics Rental units within the project area will be eligible for rehabilitation grants. Single family residences and each unit of a duplex or multi-family rental unit are eligible for a grant. B. Location Units must be located in the project area which is bounded by Jefferson Avenue on the north; Fountain Street on the east; Shawnee Parkway (New State Highway 74) on the south; and Sprigg Street on the west Units outside these areas which pose a health or safety hazard may be eligible for an emergency home repair grant. C. Condition Units must be able to comply with Section 8 Existing Housing Quality Standards at the completion of rehabilitation. D. Types of Improvements Any improvement required to bring the unit up to Section 8 Existing Housing Quality Standards and Local Housing Codes. Any improvements resulting in substantial weatherization. Exterior painting. All improvements must be physically attached to the property and permanent in nature. General property improvements--These are improvements in excess of local code requirements and are specifically prohibited. Improvements of this type include additions for family rooms or dens, carports, air conditioning and the like. They are not eligible improvements for the rehabilitation program. REHABILITATION GRANT PROGRAM GUIDELINES RENTAL PROPERTY OWNERS Page 5 IX. CONTRACTING REQUIREMENTS A. Contract Between the Homeowner and the Contractor The contract for rehabilitation will be let by the homeowner and will be between the homeowner and the contractor. The City will be a third party to the contract. B. Contracting Contracting will be done on a competitive bid basis. The City will prepare the bid package, and advertise and review all bids to determine if they are responsive and responsible. The homeowner will award the contract to the bidder. C. Change Orders All change orders to the bid specifications require the signatures of both the owner and the City Planner. D. Paint The owner may select the color of paint to be used. He/she will select the paint from paint chips and will initial the paint chip signifying his/her selection. Paint which matches the initialed paint chip will not be changed. E. Acceptance of Work In the event of any dispute between the owner and the contractor concerning the completion of the rehabilitation, the City Planner will work with both parties to negotiate a satisfactory solution. If such a solution cannot be found, the City shall be the final authority on when the job has been satisfactorily completed. X. COMPLAINT PROCEDURE Complaints concerning the rehabilitation grant program shall be in writing and addressed to Kent M. Bratton, City Planner. Mr. Bratton will contact you and attempt to resolve the problem. A written response will be made within fifteen (15) working days. If you are not satisfied with his response, you may file a complaint with Michael G. Miller, City Manager. His response will be in writing and will be made within fifteen (15) working days.