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HomeMy WebLinkAboutRES.651.08-05-1991 BILL NO. 91-162 RESOLUTION NO. ��' A RESOLUTION ADOPTING THE CITY OF CAPE GIRARDEAU REHABILITATION GRANT PROGRAM GUIDELINES FOR HOMEOWNERS AND RENTAL UNITS 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 Proqram Guidelines for homeowners and rental units. A copy of said Guidelines are attached hereto and made part hereof. PASSED AND ADOPTED THIS ��� DAY OF , 19� rancis E. Rhodes, Mayor ATTEST: C�iCC,e. Juli A. Dale, Deputy City Clerk CITY OF CAPE GIRARDEAU . REHABZLITATION GRANT PROGRAM GUIDELINES � (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 in the approved Community Development activity area in the City of Cape Girardeau, Missouri. The property must need rehabilitation in order to meet the minimum stan- dards 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 Govern- ment 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 prchibition shall continue for one year after �n individual' s relationship with the City GovernMent ends. C. Applications �or 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. APPLICAr'T REOLIRENENTS To be eligible to receive a rehabilitation grant, the applicant :�ust be an individual or family who owns and occupies residential property within the project area. The individual cf family must also have own and occupy the residence pricr tc T�akir.g 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 deterimed by the following schedule: REHABILITATION GRANT PROGRAM GUIDELINES � (HOMEOWNERS) Page 2 Familv Size 1 2 3 � 4 5 Income Scale Maximum Income 17 , 650 20, 150 22 , 700 25, 200 27 , 200 (Family) Familv Size 6 � $ Income Scale Maximum Income 29 , 250 31, 250 33, 250 (Family) • IV. LIMITATION CN AI��CL'P�T OF GRANT For an applicant whose income does not exceed the above limits, the a;�ount of the grant shall be the lesser of the maximum allowable grant of $ 12 , 000 or the actual (and approved cost of the repairs and improvements .^.ecessary 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 inco:ne for the purpose of a rehabilitation grant to a residential property taking into acccunt the variatior.s applicable to different applicants and prcperties. B. TYPE OF APPLZCANTS . In order to make determinations with respect to eliqibility for a rehabilitation granL, an applicant is an owner-cccupant of a residential unit 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 circum- stances are stated in paragraph (d) . REHABILITATION GRANT PROGRAM GUZDELINES � (HOMEOWNERS) Page 3 1. Income of an applicant includes the income of the applicant and the applicant's family. The applicant's family includes the applicant and any other person or persons related by blood, marriage, or operation of law, who share the same dwelling unit. If ownership 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 ir.cluded are any funds contributed or paid to the family member. 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 er other than the applicant� and spouse, who does not occupy the same dwelling unit to be rehabilitated. 2 . Title IZ 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 only 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. REIiABILITATION GRANT PROGRAM GUIDELINES ` (HOMEOWNERS) Page 4 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 No Repay VII. LENGTH OF OWNERSHIP The unit must have be owned and occupied by the applicant prior to the date cf application for a grant. 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 cne is an owner-occupied unit. Single family and duplex units are eligible. B. Location Units nust be located in the project area which is bounded by the r.orth right-of-way of College Street, the east right-of-��ay ef K�est End Bculevard, the south right-of-�.�ay of Jefferson Avenue, and the west right-c�-way cf Facitic Street. 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 rehabili- tation. D. Tvpes of Improvements Any improvement required to bring the unit up to Section , 8 Existing Housing Quality Standards and Lccal :�iousing Codes. REFiABILITATION GRANT PROGRAM GUIDELINES � (HOMEOWNERS) Page 5 Any improvements resulting in substantial weatheriza- tion. tion. 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. Zmprovements 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. IX. CONTRACTING REOUIREI�lENTS A. Contract Between the Homeowner and the Contractor The ccntract fcr rehabilitation will be let by the home- owner and will be be tween the homeowner and the contractor. The City wiil be a third party to the contract. B. Contractinq Contracting will be done on a ccmpetitive bid basis. The City will prepare the bid package and advertise and review all bids to determine they are responsive and responsible. The homecwner will award the contract to the bidder. C. Chancte Orders All change crders to tne bid specifications require the signature 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 Z,�ork In the event of any dispute between the owner and the contractor concerning the completion of rehabilitation the City Planr.er work with both parties to negctiate 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. REHABILITATION GRANT PROGFtAM GUIDELINES ` (HOMEOWNERS) Page 6 X, COMPLAINT PROCEDURE Com�laints 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 reponse will be made within fifteen (15) working days. If you are not satisfied with his response, you may file a complaint with J. Ronald Fischer, City Manac�er. His reponse will be in writing and will be made within fifteen (15) working days. Dated 7/25/91 CITY OF CAPE GIRARDEAU � REHABILITATZON GRANT PROGRAM GUIDELINES (RENTAL UNITS) 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 propertx 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 stan- dards of the City of Cape Girardeau. B. No member of the governing body of the locality and no other official , employee, or ac�ent of the City Govern- ment 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 progran. This prohibition shall continue for one year after an individual ' s relationship with the City Government ends. C. Applications for renabilitation grants will be accepted and processed in the order received. Completed applications will be assigned a case nuriber when turned in to determine priority. Priority will be given to owner-occupied units. � II . APPLICANT REOUIRE?�!E?v'TS To be eligible to receive a rehabilitation grant, the residential property must be occupied by an LMI individual or family located within tne 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, matcheci 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 deterimed by t�e following schedule: RES,ABILITATION GRANT PROGRAM GUIDELINES � (RENTAL IINIT3) Page 2 FamilY Size 1 2 3 4 5 Income Scale Maximum Income 17 , 650 20, 150 22 , 700 25, 200 27 , 200 (Family) Family Size 6 7 8 Income Scale Maximum Income 29 , 250 31, 250 33 , 250 (Family) IV. LIMITATION ON AMOliNT OF GRANT For an applicant whose income does ;�ot exceed the above limits, the amount of the qrant shall be the lesser of the maximum allowable grant of $ 12 , 000 or the actuai (and approved cost of the repairs and improvements necessary to make the property conform �o the rehabilitaticn 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 purpose 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 a residentiai unit property located within the project area. For this purpose, an applicant must hold legal title to the property that is to be rehabilitated. 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. REFiABILITATION GRANT PROGRAM GUIDELINES , (RENTAL IINITS) Page 3 . Exclusions from income applicable in special circum- stances are stated in paragraph (d) . 1. Income of an applicant includes the income of the applicant and the applicant's family. The applicant's family includes the applicant and any other person or persons related by blood, marriage, or operation of law, who share the same dwelling unit. If ownership 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 appTicant'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. 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 occupy the same dwelling unit to be renabilitated. 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 bene=its 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 only 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 REHABILZTATION GRANT PROGRAM GUIDELINES � (RENTAL IINITS) Page 4 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 the grant agreement or is no longer occupied by an LMI resident, the owner (s) shall compensate the City in an amount set forth in the following repayment schedule. Provided, however, that should the purchaser agree, in writing, to all of the terms and conditions herein, the Grant Administrator may allow the purchaser to assume the obligations set forth herein. 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 No Repay VII. LENGTH OF OkNERSHIP The unit must be owned by the applicant prior to the date of application for a grant. VIII. PROPERTY ELIGIBILITY A. Unit Characteris�ics 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 the north right-of-way of College Street, the east right-of-way of West End Boulevard, the south right-of-way of Jefferson Avenue, and the west right-of-way of Pacific Street. Units outside these areas which pose a health or safety hazard �r,ay 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 rehabili- tation . REHABILITATION GRANT PROGRAM GUIDELINES . (RENTAL IINITS) Page 5 D. Tvpes 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 weatheriza- tion. tion. 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 cf this type include additions for family rooms or dens, carporzs, air conditioning and the like. They are not eligible improvements for the rehabilitation program. IX. CONTRACTING RE4UIREMENTS A. Contract Between the Homeowner and the Contractor The contract for rehabilitation will be let by the home- owner and will be be tween the homeowner and the contractor. The City wi1Z be a third party to the contract. . B. Contractinci Contracting will be done on a competitive bid basis . The City will prepare tne bid package and advertise and review all bids to determine they are resnonsive and responsible. The homeowner will award the contract to the bidder. C. Change Orders All change orders to the bid specifications require the signature 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 . REHABILITATION GRANT PROGRAM GUIDELINES � (RENTAL IINITS) Page 6 E. Acceptance of Work In the event of any dispute between the owner and the contractor concerning the completion of rehabilitation the City Planner 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 Com�laints 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 reponse will be made within fifteen (15) working days. If you are not satisfied with his response, you may file a complaint with J. Ronald Fischer, City Manac�er. His reponse will be in :arit?ng ar.d will be made within fifteen (15) working days. Dated 7/25/91 �