HomeMy WebLinkAboutAgenda Report - April 5, 2017 C-15TM
CITY OF LODI
COUNCIL COMMUNICATION
AGENDA ITEM
C-15
AGENDA TITLE: Adopt Resolution Approving the Residential Repair Program Guidelines
MEETING DATE: April 5, 2017
PREPARED BY: Community Development Director
RECOMMENDED ACTION. Adopt Resolution approving the Residential Repair Program
guidelines.
BACKGROUND INFORMATION: The Community Development Department — Neighborhood
Services Division is establishing a Residential Repair Program
with an allocation of $135,000 of 2016-17 Community
Development Block Grant (CDBG) program funding.
The purpose of the Residential Repair Program is to provide low- to moderate -income homeowners
grants of up to $10,000 to make minor interior and exterior repairs and improvements to their primary
residence.
There is a significant need to provide this service to low-income homeowners within our community in
order to preserve and rehabilitate existing affordable housing.
The proposed Residential Repair Program Guidelines are attached (Exhibit A).
Program Guidelines — Key Points
Income Eligibility: Household incomes at or below 80 percent of Area Median Income (AMI).
(Updated annually)
1 Person 2 Persons 3 Persons 4 Persons 5 Persons 6 Persons 7 Persons 8 Persons
$33,000 $37,700 $42,400 $47,100 $50,900 $54,650 $58,450 $62,200
U.S. Department of Housing and Urban Development 2016 Income Levels
APPROVED:
chwabau-Cty Manager
Residential Repair Program Guidelines
April 5, 2017
Page 2 of 2
Subsidy Type: Grants up to $10,000
Eligible Improvements:
The Program covers the following exterior property improvements, with
the understanding that Building Code/Housing Code compliance and
safety repairs will have a priority over other improvements.
• Prep and paint the exterior and trim of the dwelling;
• Minor exterior repair to stucco and repair/replacement of
minor damage to wood siding;
• Replacement of windows and window frames;
• Replacement of exterior doors, door hardware and
deadbolts, including garage doors;
• Repair/replacement of roofs (40 -year warranty minimum);
• Installation of interior and exterior accessibility features, such
as ramps, handrails, and alterations to remove barriers to
accessibility;
• Installation of new fencing within the front yard setback;
• Driveway/walkway replacement;
6 Water/Sewer Line Replacement;
• Other similar repairs which may be approved at the City's
discretion.
Owner Contribution: Cost for eligible repairs above and beyond the subsidy amount.
Qualification Req.: Must own the home and occupy it as primary residence.
The Program Guidelines also details that the City Manager, or their designee, is authorized to execute
all necessary loan documents, agreements and instruments for the Residential Repair Program.
FISCAL IMPACT:
CDBG are federal funds. Administrative costs for application processing,
inspection and work write-up are eligible project delivery costs and can
be charged against the program.
FUNDING AVAILABLE: $135,000 — 2016-17 Community Development Block Grant allocation.
Etca -\
Susan Bjork, Budget Man
Attachments
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Stepen wabaur-
Community Development Director
Exhibit A
Residential Repair Program Guidelines
CITY OF LODI COMMUNITY DEVELOPMENT DEPARTMENT
NEIGHBORHOOD SERVICES DIVISION
RESIDENTIAL REPAIR PROGRAM
GUIDELINES
Residential Repair Program
APRIL 4, 2017
FUNDING FOR THIS PROGRAM IS PROVIDED THROUGH THE U.S.
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT'S
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM.
March 2017
Page 1 of 6
RESIDENTIAL REPAIR PROGRAM
GUIDELINES
PROGRAM DESCRIPTION: This Residential Repair Program provides grants of up to
$10,000 to low- to moderate -income seniors, handicapped and families, who own and
occupy their home and need financial assistance to make minor interior and exterior
repairs and improvements.
ELIGIBILITY: Income eligibility requirements are based upon both family size and total
annual household income for all adult members of the households. Only households
that earn less than CDBG's (Community Development Block Grant) moderate -income
limit (80% of median household income) are eligible for this program. This is consistent
with CDBG's priorities to assist those who are low to moderate income. (Income limits
are attached in Exhibit A).
Eligible properties are any owner -occupied, single-family residence, duplex (half-plex,
where both halves are owner -occupied), or mobile home where there is a legitimate
need for improvements within the project area.
This program will comply with all HUD-CDBG program regulations relevant to the
administration of this program.
ELIGIBLE IMPROVEMENTS: The Program covers the following interior and exterior
property improvements, with the understanding that Building Code/Housing Code
compliance and safety repairs will have a priority over other improvements.
• Prep and paint the exterior and trim of the dwelling;
• Minor exterior repair to stucco and repair/replacement of minor damage to wood
siding;
• Replacement of windows and window frames;
• Replacement of exterior doors, door hardware and deadbolts, including garage
doors;
• Repair/replacement of roofs (40 -year warranty minimum);
• Installation of interior and exterior accessibility features, such as ramps,
handrails, and alterations to remove barriers to accessibility;
• Installation of new fencing within the front yard setback;
• Driveway/walkway replacement;
• Water/Sewer Line Replacement;
• Other similar repairs which may be approved at the City's discretion
Residential Repair Program
March 2017 Page 2 of 6
APPLICATION REQUIREMENTS:
Applicants must provide the following documentation for all persons on title and anyone
over the age of 18 that resides within the dwelling:
• Proof of income in the form of two (2) months pay stubs;
• Proof of ownership in the form of a grant deed, a deed of trust, or property tax bill
• Driver's License or Social Security Card;
• Most recent Federal and State Tax Returns with W-2 form(s);
• Current on utility bill
• The City will reserve the right to require additional documentation as necessary
to verify total household income, such as a Bank Statements, Statement of
Benefits from the Social Security Administration, Child Support Order from the
Court, etc.
A copy of the Grant Application for this program is attached as Exhibit B.
PROGRAM PROCEDURES: Subsequent to confirming the applicant's income
eligibility, staff will physically inspect the home/property to determine the scope of
eligible repairs. Applicants who meet all program criteria will be provided a Letter of
Approval and if available, a list of Program -approved contractors/vendors. Along with
the Letter of Approval, applicants will receive a Notice to Contractors to use when they
obtain at least three estimates.
The Notice to Contractors provides instructions on what repairs have been approved
and the acceptable format for estimate submittals. If a list of Program -approved
contractors/vendors is provided and the applicant chooses to seek estimates from his or
her own contractors/vendors, he or she must provide at least one bid from a Program -
approved contractor.
If the applicant chooses to directly engage his own contractor/vendor, the applicant may
use any contractor of his choice as long as the contractor holds the appropriate
professional licenses, appropriate insurance coverage/bonding and a City Business
License. Any contractor that is not on a Program -approved list will need to be approved
by Program staff prior to receiving authorization to proceed.
Regardless of whether the applicant agrees to proceed with a Program -approved
vendor/contractor or his own, the City will pay the vendor/contractor directly for all
approved work once the work has been completed, inspected and approved. The
applicant will not have any financial responsibility; however, if the Program Subsidy is
not enough to complete repairs within the original scope of work then the applicant may
provide the amount needed above the Program subsidy. If so, the applicant will need to
provide those additional funds prior to engaging the vendor/contractor.
Under either contractor selection method, payment shall not be made for substandard
work or materials.
Residential Repair Program
March 2017 Page 3 of 6
Individual projects will be financially closed subsequent to Program Staff's approval of
the work performed and the affected applicant signing an Acceptance and Approval of
Notice of Completion.
APPROVAL OF PROGRAM LEGAL DOCUMENTS: All Program legal documents
shall be approved as to form by the City Attorney prior to their use.
AUTHORITY TO ADMINISTER: The preparation and use of all required Program
procedure manuals, forms, documents and agreements shall be administered by the
City Manager or his designees in accordance with these Program guidelines.
Residential Repair Program
March 2017 Page 4 of 6
Residential Repair Program
Exhibit A
Income Qualification Limits
Source: U.S. Department of Housing and Urban Development 2016 Income Levels
CDBG INCOME LIMITS*
Household Size
Moderate -
Income Limit
80% of Median
Income
(HUD categorize as
low-income)
1
$33,000
2
$37,700
3
$42,400
4
$47,100
5
$50,900
6
$54,650
7
$58,450
8
$62,200
* 2016 HUD Income Limits
March 2017 Page 5 of 6
Exhibit B
Residential Repair Program Application
SECTION 1 — APPLICANT INFORMATION
Applicant Name:
Last
First M.I.
Applicant Address:
Number Street
Applicant Phone:
Home
SECTION 2 — INCOME INFORMATION
List everyone in the family and others living with you and the current gross monthly income (before taxes) received
by each. Include wages, social security, disability, retirement, child support, alimony, income from investments, etc.
Cell/Work
Name of Resident
Age
Disabled
Y or N
Source of Income
Gross Monthly
Income
1.
2.
3.
4.
5.
6.
Total # of Residents at this Address:
Total Gross Monthly Income: $
List all assets held by each person listed above (i.e. other property, equipment, car, stocks, etc):
SECTION 3 — PROPERTY INFORMATION
How long have you owned this property?
How many bedrooms in the home?
Proposed home improvements: ❑ Paint Exterior ❑ Siding/Stucco Repair ❑ Windows ❑ Doors
❑ Roof ❑ Ramps/Handrails ❑ Fencing ❑ Accessibility Repairs ❑ Driveway/Walkways
❑ Water/Sewer Line Replacement ❑ Other:
The City of Lodi will seek recovery of any funds paid under this program to any person whose application
contained false or incomplete information.
I certify under penalty of perjury that the above information is true and correct.
Signature Date
Residential Repair Program
March 2017 Page 6 of 6
RESOLUTION NO. 2017-52
A RESOLUTION OF THE LODI CITY COUNCIL
APPROVING RESIDENTIAL REPAIR PROGRAM
GUIDELINES
WHEREAS, the Department of Housing and Urban Development (HUD) has determined
that the City of Lodi, California, is entitled to Community Development Block Grant (CDBG) as
an entitlement community; and
WHEREAS, CDBG funds are to be used for the purposes set forth in Title I of the
Housing and Community Development Act of 1974 (HCDA) to provide decent housing; a
suitable living environment; and expanding economic opportunities; principally for persons of
low- and moderate -income; and
WHEREAS, under the provisions at 24 CFR §570.202(a)(1), grantees may provide
financial assistance to low- and moderate -income households to assist them in the rehabilitation
of their primary residence.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby approve
the Program Guidelines, as attached hereto as Exhibit A, for the Residential Repair Program
that is funded through the City of Lodi's CDBG Program.
Dated: April 5, 2017
I hereby certify that Resolution No. 2017-52 was passed and adopted by the Lodi City
Council in a regular meeting held April 5, 2017, by the following vote:
AYES: COUNCIL MEMBERS — Chandler, Johnson, Mounce, and Mayor Kuehne
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — Nakanishi
ABSTAIN: COUNCIL MEMBERS — None
r1 NIFER JFERRAIOLO
City Clerk
2017-52
EXHIBIT A
CITY OF LODI COMMUNITY DEVELOPMENT DEPARTMENT
NEIGHBORHOOD SERVICES DIVISION
RESIDENTIAL REPAIR PROGRAM
GUIDELINES
III
(Jodi;•
Residential Repair Program
APRIL 4, 2017
FUNDING FOR THIS PROGRAM IS PROVIDED THROUGH THE U.S.
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT'S
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM.
March 2017 Page 1 of 6
RESIDENTIAL REPAIR PROGRAM
GUIDELINES
PROGRAM DESCRIPTION: This Residential Repair Program provides grants of up to
$10,000 to low- to moderate -income seniors, handicapped and families, who own and
occupy their home and need financial assistance to make minor interior and exterior
repairs and improvements.
ELIGIBILITY: Income eligibility requirements are based upon both family size and total
annual household income for all adult members of the households. Only households
that earn less than CDBG's (Community Development Block Grant) moderate -income
limit (80% of median household income) are eligible for this program. This is consistent
with CDBG's priorities to assist those who are low to moderate income. (Income limits
are attached in Exhibit A).
Eligible properties are any owner -occupied, single-family residence, duplex (half-plex,
where both halves are owner -occupied), or mobile home where there is a legitimate
need for improvements within the project area.
This program will comply with all HUD-CDBG program regulations relevant to the
administration of this program.
ELIGIBLE IMPROVEMENTS: The Program covers the following interior and exterior
property improvements, with the understanding that Building Code/Housing Code
compliance and safety repairs will have a priority over other improvements.
• Prep and paint the exterior and trim of the dwelling;
• Minor exterior repair to stucco and repair/replacement of minor damage to wood
siding;
• Replacement of windows and window frames;
• Replacement of exterior doors, door hardware and deadbolts, including garage
doors;
• Repair/replacement of roofs (40 -year warranty minimum);
• Installation of interior and exterior accessibility features, such as ramps,
handrails, and alterations to remove barriers to accessibility;
• Installation of new fencing within the front yard setback;
• Driveway/walkway replacement;
• Water/Sewer Line Replacement;
• Other similar repairs which may be approved at the City's discretion
Residential Repair Program
March 2017 Page 2 of 6
APPLICATION REQUIREMENTS:
Applicants must provide the following documentation for all persons on title and anyone
over the age of 18 that resides within the dwelling:
• Proof of income in the form of two (2) months pay stubs;
• Proof of ownership in the form of a grant deed, a deed of trust, or property tax bill
• Driver's License or Social Security Card;
• Most recent Federal and State Tax Returns with W-2 form(s);
• Current on utility bill
• The City will reserve the right to require additional documentation as necessary
to verify total household income, such as a Bank Statements, Statement of
Benefits from the Social Security Administration, Child Support Order from the
Court, etc.
A copy of the Grant Application for this program is attached as Exhibit B.
PROGRAM PROCEDURES: Subsequent to confirming the applicant's income
eligibility, staff will physically inspect the home/property to determine the scope of
eligible repairs. Applicants who meet all program criteria will be provided a Letter of
Approval and if available, a list of Program -approved contractors/vendors. Along with
the Letter of Approval, applicants will receive a Notice to Contractors to use when they
obtain at least three estimates.
The Notice to Contractors provides instructions on what repairs have been approved
and the acceptable format for estimate submittals. If a list of Program -approved
contractors/vendors is provided and the applicant chooses to seek estimates from his or
her own contractors/vendors, he or she must provide at least one bid from a Program -
approved contractor.
If the applicant chooses to directly engage his own contractor/vendor, the applicant may
use any contractor of his choice as long as the contractor holds the appropriate
professional licenses, appropriate insurance coverage/bonding and a City Business
License. Any contractor that is not on a Program -approved list will need to be approved
by Program staff prior to receiving authorization to proceed.
Regardless of whether the applicant agrees to proceed with a Program -approved
vendor/contractor or his own, the City will pay the vendor/contractor directly for all
approved work once the work has been completed, inspected and approved. The
applicant will not have any financial responsibility; however, if the Program Subsidy is
not enough to complete repairs within the original scope of work then the applicant may
provide the amount needed above the Program subsidy. If so, the applicant will need to
provide those additional funds prior to engaging the vendor/contractor.
Under either contractor selection method, payment shall not be made for substandard
work or materials.
Residential Repair Program
March 2017 Page 3 of 6
Individual projects will be financially closed subsequent to Program Staffs approval of
the work performed and the affected applicant signing an Acceptance and Approval of
Notice of Completion.
APPROVAL OF PROGRAM LEGAL DOCUMENTS: All Program legal documents
shall be approved as to form by the City Attorney prior to their use.
AUTHORITY TO ADMINISTER: The preparation and use of all required Program
procedure manuals, forms, documents and agreements shall be administered by the
City Manager or his designees in accordance with these Program guidelines.
Residential Repair Program March 2017 Page 4 of 6
Residential Repair Program
Exhibit A
Income Qualification Limits
Source: U.S. Department of Housing and Urban Development 2016 Income Levels
CDBG INCOME LIMITS*
Household Size
Moderate -
Income Limit
80% of Median
Income
(HUD categorize as
low-income)
1
$33,000
2
$37,700
3
$42,400
4
$47,100
5
$50,900
6
$54,650
7
$58,450
8
$62,200
* 2016 HUD Income Limits
March 2017 Page 5 of 6
Exhibit B
Residential Repair Program Application
SECTION 1 — APPLICANT INFORMATION
Applicant Name:
Last First M.I.
Applicant Address:
Number Street
Applicant Phone:
Home CeIINVork
SECTION 2 — INCOME INFORMATION
List everyone in the family and others living with you and the current gross monthly income (before taxes) received
by each. Include wages, social security, disability, retirement, child support, alimony, income from investments, etc.
Name of Resident
Age
Disabled
Y or N
Source of Income
Gross Monthly
Income
3.
4.
5.
6.
Total # of Residents at this Address: Total Gross Monthly Income: $
List all assets held by each person listed above (i.e. other property, equipment, car, stocks, etc).
SECTION 3 — PROPERTY INFORMATION
How long have you owned this property?
How many bedrooms in the home?
Proposed home improvements: El Paint Exterior ❑ Siding/Stucco Repair ❑ Windows ❑ Doors
❑ Roof ❑ Ramps/Handrails ❑ Fencing ❑ Accessibility Repairs ❑ Driveway/Walkways
❑ Water/Sewer Line Replacement ❑ Other:
The City of Lodi will seek recovery of any funds paid under this program to any person whose application
contained false or incomplete information.
I certify under penalty of perjury that the above information is true and correct.
Signature Date
Residential Repair Program March 2017 Page 6 of 6