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HomeMy WebLinkAboutRES 2002-79RESOLUTION NO. 2002- 79 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR APPROVING A HOME IMPROVEMENT PROGRAM WHEREAS, on August 22, 1974, the President of the United States Law the Housing and Community Development Act of 1974 (Act); a signed WHEREAS, the primary goals of Title 1 of the Act are the development of v able a urban communities by providing decent housing and a s itable living environment, and expanding economic development opportunities, principally for persons of low and moderate income; and WHEREAS, the City receives an annual allocation of FederaComm nity Development Block Grant (CDBG) funds to further the attainment o these g als; and WHEREAS, the City desires to augment its current and ongoing neighbor improvement activities by assisting low and moderate income homeowners the utilization of CDBG funding for eligible home improvements. NOW, THEREFORE BE IT RESOir LVED by the City Council o� the Cit i+ of Diamond Bar as follows: II The Home Improvement Program, dated December 3, 2092 attachehereto Exhibit "A" and incorporated herein by reference is hereby approved. PASSED, APPROVED AND ADOPTED THIS 3RD DAY OF DECEMBER Carol Herrera , MAYOR 2002- 1, Lynda Burgess, City Clerk of the City of Diamond, do hereby certify that the foregoing Resolution was passed, approved andadopted at a regular meeting of the City Council of the City of Diamond Bar held on 3rd day of December, 2002. AYES: COUNCIL MEMBERS: Chang, o' Connor, Zirbes, MPT/Huff, M/Herrera NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: None s , ATTEST: Lynd6 Burgess, City CYerk City of Diamond Bar 2 2002-79 i �l u CITY OF DIAMON Home Improve �wl Prodra Decembe 3, 2 0 t 1. OVERVIEW OF PROGRAM A. Purpose and Goal The purpose of the City of Diamond Bar Home Improvement Program is to preserve and enhance single family residential neighborhoods throughout the City; to provide grants and loans to eligible homeowners of single family detached dwellings for the preservation of safe, decent and sanitary housing; to correct hazardous structural conditions; to make modifications necessary to provide handicapped access to the dwelling; to improve the overall exterior appearance of the home; to eliminate an appearance of blight; and to correct exterior code violations through the grants and loans. The eligible improvements will depend on the type of program that is utilized for assistance. B. Objective The -objective of the Home Improvement Program is to provide grants and loans to assist eligible low- and moderate- income residential ownerloccupants in maintaining the City's existing residential neighborhoods through home rehabilitation C. Programs Grants and Loans shall be provided to eligible low- and moderate- income households of owner occupied single-family detached homes to cover the cost of housing repairs in accordance with the criteria outlined within this program. D. Source of Funds The source of funds for implementation of the Home Improvement Program is the Community Development Commission (CDC) of the County of Los Angeles through a sub -contract with the City of Diamr,:.d Bar. The CDC acts as an agent for and receives Community Development Block Grant (CDBG) funds made available by the U.S. Department of Housing and Urban Development (HUD). These funds are specifically targeted to benefit low- and moderate- income households and eliminate slums and blight. The City of Diamond Bar desires to make these funds. available to qualified residents by marketing the program; processing and packaging all applications; and perform all on-site inspections. The City is obligated to follow and fulfill the terms and conditions of its contract with the CDC, established CDC policies and procedures and Federal and local rules and regulations. This document establishes City Council policy and procedures for the Home Improvement Program. II. HOME IMPROVEMENT PROGRAMS Eligible homeowners may utilize assistance under the grant, emerge deferred loan programs. Repeat assistance will be allowed for loans onc( years provided that the balance of all outstanding loans may not exceed $ are available on a one-time only basis. The City will offer the fc improvement programs to assist low- and moderate -income housholds improvements to their residences. Participation in the Home Improvem subject to the additional requirements described in Sections 11 through V of A. Grant Program Target Income Group: Maximum Amount: Project Location: Fees. Availability: Eligible Improvements 1 B. Emergency Grant Program <_ 80 % of area median family income $5,000 Citywide None Owner occupied Single -Family Prc time only per household per address Correction of hazardous structur modifications necessary to provide accessibility to the dwelling; improv overall exterior appearance of elimination of an appearance of bli of exterior code violations. Priority v exterior improvements that are vis public right-of-way. An emergency grant is designed to assist households who unexpected repairs to their residence which are of a critically u pose an immediate threat to the household's health and safety. Target Income Group: Maximum Amount: Project Location: Fees: Availability: Special Requirements: 1 <_80% of area median income $2,000 Citywide None Unlimited per special requirements May only be used to address e building code violations, structural require immediate attention to damage to the property, and/or threaten the health and safety occupants after homeowner has other available forms of eligible ass! may be used to repair approved inte items. 2 icy grant and every to (10) '5,000, Grants lowing ome with necessary Dnt Program is `his policy. (MFI) erties - I One I condi ions; handica ped ments t the the h me; ht; corre tion 1! be given to )le from any faced with t nature and sting zoing/ mclitions hat 'event fu lure hat )f the a it's !xhausted all ance. Funds )r emery ncv C. Deferred Loan Program Target Income Group Maximum Loan: Project Location: Security: Loan Rate and Term: Fees: Availability: 80% of area median income $10,000 Citywide Recorded Trust Deed / Promissory Note 0% interest / Deferred loan payable upon sale, transfer of title or refinancing of any loan in prior position to that of the City. All Fees associated with the loan such as PIRT Policy and recordation fees shall be added to loan principal. Owner occupied Single -Family Properties - Repeat assistance may be allowed for loans once every ten (10) years provided that the balance of all outstanding loans may not exceed $25,000. Special Requirements: Home Improvement Program loans must be recorded against the property in second position or higher. Exceptions will be reviewed on a case by case basis. Eligible Improvements Correction of hazardous structural conditions; modifications necessary to provide handicapped accessibility to the dwelling; improvements to the overall exterior appearance of the home; elimination of an appearance of blight; correction of exterior code violations. Priority will be given to exterior improvements that are visible from any public right-of-way. 3 1 f n 111. ELIGIBILITY CRITERIA Homeowner Eligibility Requirements 1. Household Income Adjusted Gross annual household income may not exceed 8D% of th Las Angeles County median income adjusted for family size as provided bV the U.S. Department of Housing and Urban Development (HUD). The Cit will require documentation of both household size and household income information in order to determine applicant eligibility. a. Definition of Household: For the purposes of determ ning Program eligibility, "household" means a person or persons occupying a ho sing unit as the principal place of residence. b. Definition of Annual Income: For the purposes of determining Program eligibility, annual income will include: • Adjusted gross income; • Cash income received from such sources as rents, 1 ocial Security benefits, pensions, and periodic income from insurance policy annuities; • Periodic cash benefits from public assistant and other compensation, including AFDC, SSI, Worker's ompensa ion, State Disability Insurance and unemployment benefits; and • Interest earned on savings and investments. Annual Income does not include: • Non-cash income such as food stamps or vouchers received for the purpose of food or housing; • Capital gains or losses; • . One time unearned income such as scholarships end fellow hip grants, accident, het.:#^ or casualty insurance proceeds, prize or gifts, inheritances; and • Payments designated specifically for medical or othe costs, foster children or their non -disposable income. The City will make the final decision in situations where the clssificatiorh of income is disputed. II 2. Ownership of Real Property Other Than Primary Residence Ownership of rental property or other real estate holdings other than the household's primary residence is prohibited and will result in the rejection of an application for assistance. B. Property Eligibility Requirements In accordance with the requirements of Section II.A. above, following determination of homeowner eligibility, the owner must demonstrate property eligibility. To be eligible to receive Program assistance, real property will be evaluated and must meet each of the requirements set forth below: 1. Location and Type of Propert The property must be a detached single-family residence located within the city limits of the City of Diamond Bar. 2. Condition The property must be in need of exterior repairs to (i) correct existing nonconforming development standards, (ii) correct existing nonconforming local and/or state code requirements, (iii) correct existing local and/or state code violations, (iv) protect the structural integrity of the property, (v) promote neighborhood preservation and /or safety, (vi) refurbish exterior and/or eligible interior improvements (necessary for health and safety), or (vii) aid the mobility of the physically disabled and/or elderly. All repairs must qualify as eligible repairs as defined in Section III. Note: Existing City code violations visible from a public right-of-way may be resolved using Home Improvement Program funds. Any non eligible code violation must be resolved by the homeowner through the City's normal procedures. 3. Ownership and owner -Occupancy Requirements The income eligible homeowner(s) must hold record fee simple title to the property, and must occupy the property as a principal residence. The City will not approve homeowners listing their home for sale. 4. Equity The total indebtedness of all recorded liens, including the City's Home Improvement Program loan, may not exceed ninety-five percent (95%) of the fair market value of the home after rehabilitation. For the purposes of this calculation; encumbrances must _Include the proposed principal amount of the Program loan requested by the eligible owner. 5. Hazard Insurance All properties must be insured with an ail -risk property insurance policy in an amount equal to the full replacement value of all structures located on the property. Furthermore, all properties located within the 100 -year floodplain that receive assistance under the Program must maintain flood insurance in the amount of the improvements for the term of the loan. G. Property/Income Tax Delinquency or Liens All property taxes and assessments must be paid current, and the property must not have any recorded property or income tax liens. 7. Outstanding Judgments and Obligations All outstanding mortgages recorded against the subject property must be current. Furthermore, outstanding tax liens, mechanics liens and/or 1 judgments recorded against the property to be rehabilitated mut be paid prior to participating in the program unless waived by the Home Improve ent Screening Committee. 7.1 IV. ELIGIBLEANELIGIBLE IMPROVEMENTS A. Order of Priorities for Eligible Improvements The following order of priorities will apply to all eligible improvements made under the Home Improvement Program. All improvements listed within any given priority category must be addressed prior to the inclusion of items identified as having a lower priority. 1. Mandatory improvements. including those needed to alleviate conditions that present an immediate threat to the health and safety of the property's occupants and those needed to correct existing building, zoning and public nuisance code violations. 2. General property exterior improvements needed to repair or replace broken, damaged and/or deteriorated items. 3. Lead based paint improvements as required by the U.S. Department of Housing and Urban Development. B. Eligible Improvements All eligible improvements must be physically attached to the property and be permanent in nature. In order to be eligible for Program assistance, the City's Deputy City Manager, Building Official, or designee, following an inspection of the property in accordance with Program requirements, must approve proposed improvements. All rehabilitation work must be completed by qualified, licensed, and insured contractors selected in accordance with Program procedures. The Home Improvement Program is designed to provide for the repair, and if necessary, the replacement of damaged, deteriorated or failing items or improvements that already exist on an eligible property. In the event that replacement of damaged, deteriorated or failing items or improvements is necessary, said items will be replaced with materials considered to be standard grade material. Luxury quality items will not be used in making necessary repairs. The program is not designed to prov'de for the upgrade of single-family homes. Some eligible improvements are subject to material allowances. A description of all applicable cost allowances will be provided to the applicant if requested. A listing and description of all eligible improvements, including item -specific restrictions (if applicable) is provided below: Abatement of Code Violations: All work including but not limited to demolition, construction, rehabilitation, replacement, and installation needed to abate violations of the City codes. 2. Accessibility Modifications: All modifications, alterations, or additions necessary to facilitate access and use of the home by disabled persons are permitted. These may include the installation of handicap ramps, grab bars, and accessible shower enclosures; the modification of doorways, hallways, and countertop elevations; and other adaptive measures. 3. Deadbolt locks: Installation of deadbolt locks is re aired on all entry do ' 4. Doors/Windows: Repair and replacement of worn or damaged exterior or windows is permitted with those of similar type and/or quality. Enlarg of door/window openings is permitted only where the existing door/" area is non-compliant with current building codes, and onl to the needed to achieve building code compliance. 1 1 rs 5. Driveways/Walkways: Repair or replacement of damaged or deteriorated driveways and walkways. Driveways and walkways may only be replaced with broom -finished concrete. The use 'of decorative stone o brick iE not permitted. 6. Electrical: Repair and upgrading of electrical system, if required under National Electrical Code, including service panels, wiring, outlets, and switches. Replacement of fixtures and installation of security lighti g is eligible subject to a $40.00 per fixture cost allowance. 7. Energy conservation: Installation or replacement of insulation, weather stripping, water heater blankets, and attic ventilators. Installa ion of energy efficient doors and windows is allowable provided that the conc itions outlined under Doors/Windows are met. 8. Fencing/Block Walls: Repair or replacement of existing fencing or block ails (in kind) is eligible where the wall is constructed adjacent to a public rig t -of - way. Chain link fences may however, be replaced with a wood (cede r or redwood) fence. For properties with pools, the repair or installation of fences, gates and safety hardware/devices as needed to comply with U iform Buil ing Code requirements is permitted. 9. Garage Doors: The repair or replacement of garage doors, including the replacement of inoperable garage door openers and broken sprir gs is eligi Die. 10, HVAC Systems: Repair or replacement of failed, failing, damaged or inoperative HVAC system components included furnaces, an conditioiung compressors, forced air units, heat pumps, ducts and ventsre permitted. The installation of new air condi-Joning equipment is not permi ed exce t in cases where medically necessary as prescribed by a doctor. 11. Front Yard Landscaping: The replacement of dead sod is pe extent necessary to meet minimum municipal code require planting of replacement trees, shrubs, ground covers (other & landscaping, and permanent planter boxes is permitted. All sod must include the installation of an automated irrigation system. 12. Overgrown/Dead Vegetation: The trimming of overgrown removal of dead vegetation or living vegetation whose root structural damage are permitted. Dead vegetation, other removed may not be replaced. 0 nitted to the lents. The i sod), hard ?PlaceME.nts tion and the n is causing sod, that is 13. Painting (exterior): Exterior painting is eligible and trust be undertaken if the current condition represents a violation of the City Code as determined by the City's Neighborhood improvement Officer. All painting must comply with the Lead Based Paint requirements of the U.S. Department of Housing and Urban Development. 14. Termite/Pest Control: Eradication of insect infestations and repairs to improvements damaged by insect infestation is permitted. 15. Plastering, siding, and stucco: Repairs (e.g. patching, filling or localized replacement) to damaged plaster, stucco or siding is permitted. 16. Plumbing/Sewer Pipes and Fixtures: Repair or replacement of leaking or damaged water/sewer pipes and fixtures (including toilets, bathtubs, shower enclosures, faucets and garbage disposals) to the extent necessary to complete rehabilitation, not customization. 17. Property Clean-up: Removal of overgrown vegetation and debris and trash located on the property's front, side and rear yards is permitted. Removal of excessive debris and trash from the inside of the home is permitted only where the homeowner(s) is/are physically incapable of completing such work. 18. Roofing: Complete repair or replacement of deteriorated or damaged roofing is permitted. Materials of the same type and quality as the existing roof must be used (i.e. composition shingle must be replaced by composition shingle) except where 1) different roofing materials are needed to match the type and quality of roofs found on a majority of homes in the immediate neighborhood, or 2) the existing roof is made of wood shake in which case a tile roof may be installed. Roof replacements that require an engineering survey or engineered structural modifications are not permitted. 19. Smoke Detectors: Smoke detectors must be installed throughout the home as required under the Uniform l=ire Code. 20. Structural Repairs/Modifications: Structural repairstmodifications are permitted to the extent that such repairs/modifications 1) correct existing structural deficiencies as defin`d-by the Uniform Building Code; and/or 2) provide accessibility to disabled persons. 21. Water Heaters: Repair or replacement of deteriorated or inoperable water heaters including the repair or installation of enclosures, insulation blankets, earthquake strapping and/or pressure release valves is permitted. C. Ineligible Improvements Ineligible improvements include, without limitation, improvements that are 1) accessory uses including but not limited to greenhouses, patio covers, barbecue pits and outdoor fireplaces, bathhouses, swimming pools, saunas and hot tubs, valances, cornice boards, drapes, blinds, and indoor or outdoor furnishings; 2) any improvements not approved by the City. Z V. ELIGIBLEAN ELIGIBLE COSTS ' A. Eligible Costs. Home Improvement g p Program proceeds may only 6e used for the actual reasonable costs of materials and services necessary to comple a all rehabilitation work approved by the City as set forth in the Authorized Bid L st as follows: 1. Building permits and inspection and other related fees necessary f r the completion of the approved rehabilitation work; 2. Costs of loan processing, including without limitation, credit reports, pr perry appraisals, and if necessary, preliminary title reports and recording fees; and 3. Costs of temporary relocation in connection with the rehab litation work if required by local, state and federal laws, regulations, and/or policy. B. Ineligible Costs. Specific costs not eligible for payment under the Home Improvement Program include, but are not limited to the following: 1. Materials, fixtures, or equipment of a type or quality that exceeds that customarily used in properties of the same general use as the propertyto be rehabilitated; 2. Purchase, installation or repair of interior or exterior home furnishings; 3. Compensation/reimbursement of owner's personal labor; and 4. Compensation/reimbursement for ineligible improvements or any work not included and authorized in the Authorized Bid List or subsequent approved change orders. b. Any repair work not listed as eligible in this Program nd any work contractually entered into prior to approval by the City. D 10 VI. TERMS AND CONDITIONS OF PROGRAM ASSISTANCE A. Maintenance/Occupancy Requirements Assisted properties shall be maintained in compliance with all City of Diamond Bar Municipal Codes and ordinances. Assisted properties shall maintain occupancy not to exceed the maximum occupancy limits as established by the U.S. Department of Housing and Urban Development (HUD). Property owners shall not permit criminal activities to occur on the property or permit property improvements to suffer deterioration or decline, or maintain, cause to be maintained, or permit to be maintained any public or private nuisance on or about the property. B. Hazard Insurance Property owners receiving Program loan assistance shall maintain, throughout the term of the loan, an all-risk property insurance policy, including flood insurance if the property is located in a flood zone, insuring the property in an amount equal to the full replacement value of the structures on the property. The insurance policy or policies shall name the City of Diamond Bar as an additionally insured/loss payee. C. Nondiscrimination There shall be no discrimination against or segregation of any person or group of persons in accordance with Executive Order 11246, Title VI of the Civil Rights Act of 1964, Section 109, Title I of the Housing and Community Development Act of 1974, Age Discrimination Act of 1975, and Section 504 of the Rehabilitation Act of 1973, in the selection of contractors or subcontractors to complete the rehabilitation work financed with Program assistance, or in the sale, leasing, transferring, use, occupancy, tenure, or enjoyment of assisted properties. D. Compliance with Program Policies and Procedures Throughout the applicable term of Program assistance, Program participants shall comply with all Program requirements and procedures as set forth in these Policies and Procedures, and as required by the, City and as set forth in Grant and Loan agreements•and related attachments. 11 1 1 V11. PROGRAM AMENDMENT PROCEDURES The City of Diamond Bar City Council must approve all amendments �to the Improvement Program Procedures. j 12