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HomeMy WebLinkAboutCC 5 REHAB PRIV PROP'S 05-15-89 ..... :~.~.~ CONSENT CALEN DAR ' NO. 5 ~ , 5-15-89 .... Inter- eom h TO: FROM: SUBJECT: ¥ILLIAH A. HUSTON, CITY HANAGER COIqBIJNITY DEVELOPNENT DEPARTHENT · PROPOSED CONTRACT WI'Ill COUNTY OF ORANGE FOR PROVISION OF REHABILITATION OF PRIVATE PROPERTIES - 14TH YEAR HOUSING AND COPIIIJNITY DEVELOPNENT PROGRAH RECOPI~ENDATION iii ii i i ii i ii It is recommended that the City Council approve the attached contract as submitted. BACKGROUND Enclosed is the proposed contract between the City and the .County of Orange which implements the portion of the City's .14th Year Housing and Community Development (HCD) Block Grant application described as Rehabilitation of Private Properties. On December 8, 1987 the City Council approved the City's 14th Year HCD application which recommended HCD .funds be allocated to the rehabilitation of private properties. The Orange County Board of Supervisors approved the City's 14th Year HCD applicatton~on May ~18, 1988 and specifically approved $40,000 for this rehabilitation project. The ($40,000) funds, will be utilized for low-interest loans, deferred payment loans, grants or rebates for home improvement of privately owned properties. The County only in the last several weeks submitted the subject contract to the City for the proposed project. The City Attorney has reviewed the contract and finds it acceptable. La~ura KuhE '- · ~ Senl or P1 anner LK:CAS'ts Attachment' Contract C~frtstine A. Shingl~n Director of CommuniTy Development · Contract No;-C4075 '4 l0 14 18 20 21 22 23 24 26 27 28 TITLE OF PROJECT: Tustin - Rehabilitation of Private Properties (N15.1) 19 MEMO~ OF CONTRACT entered into this .. day of , AND B~ CITY OF TUSTIN, a municipal corporation, hereinafter referred to as CITY. and COUNTY OF ORANGE, a political subdivision of the State of Cali£ornia and recognized Urban County under the Federal Housing and Community Development Act of 1974 Public Law 93-383), as amended, hereinafter referred to as COUNTY. WHEREAS, COUNTY and CITY previously entered into a Cooperation Agreement, · · .. dated December 8, 1987 in which both parties/agreed tO cooperate in the undertaking, or assist in the undertaking, of co~munity development and housing assistance activities, and W~~S, the CITY has submitted to the COUNTY an application for funding of a project hereinafter described, and ~ WHElPed,. the COUNTY has entered into a separate agreement dated July 12, 1988 with the U.S. Depactment of Housing and Urban Development (hereinafter designated as HUD) to fund said project under the HouSing and Community Development Act of 1974 (Public Law 93-383), as amended (hereinafter referred to as ACT). W~]~S~ the COUNTY has established a Home Improvement Program and has entered into individual agreements to administer said program with HUD, California State Department of Housing and Community Development and a local lending institution (s), and WHEI~FAS, the CITY has requested COUNTY to implement the CITY's Housing and Comm~ity Development Project entitled' HOusing Rehabilitation'and funded ~rom Block 'Grant ~unds (N15.1) for ($40,000.00).. NOW, THEREFOI~,'IT IS M0~ALLY AGREED by and between the pa=ties that the l0 12 2O 21 22 23 24 26 27 28 Contract NooC4075 £ollo~ing provisions listed as well as. all applicable Federal, State and County laws and ~egulations including the attached SPEC~IL PRO~SIONS, identi£ied as ~zhibit ~, and EXhibits uBu and ~C~, a~e part of this Contract. I. The CO~ will administer CITY Community Development Block Grant Rehabilitation £unds to implement the Housing Rehabilitation' Project described herein a project, which will provide lo~-inte~est loans, deferred payment loans, grants or rebates for home improvement of privately o~ned properties in the CITYts target a~ea 'an spot housing rehabilitation within the CITY's hounda~ies (see attached map Exhibit 'B') in accordance with the CO~F~Y's Home Improvement Program (see Exhibit uC' of this Contract) as approved and amended f~om time to time by the Board of Supervisors. All ~ehabilitation of single family ~esidentia~ units will benefit low- and moderate-income families and rehabilitation of multi-family ~sidential units will p~incipally benefit (minimally' $1%) 10~- and moderate-income families. 2. ~he total project funds available for loans, grants and rebates and administzative costs hereinafter provided for in Section 5 of thi~ Contract will not exceed~o~ty Thousand Dolla~s and no/100 ($40,000.00). 3.. The CITY agrees to advertise the program and to provide outreach efforts to prospective clients on an ongoing basis to p£omote loans, grants and ~ebates from available project funds. It is agreed by all parties that the pzoject shall'be completed and all funds provided through this Contract shall be expended on eligible project activities prio~ to December 31, 1989. The da~e fo~ project completion and expenditure of all funds may be extended by the Director of the Orange County Environmental Management ~gency oz his designee through w~itten notification to the CITY. 4. The CXTY agrees to p~ovide appropriate office s~ace to the COUNTY, as neede¢ for the p~o~ect, including use of a desk and a telephone. 5. The CITY agrees to pay'up~o 20% administrative charges from project funds identified in Section-2 of thisContract. When the p=oject is completed, any remaining l0 18 20 22 28 Contract No. C407~ unexpended administrative ~unds, not to exceed 20% of the total project funding amount, will be allocated to the Coun~ywide Itehabilita~ion Administra~ion account. 6. Whenever available and feasible, funds may also be used to a~minister the ~IT~'s HUD 312 Program. O~her funding sources once approved by the Board Of · Supervisors fo= the Home Improvement Program may be added to this agreement by mutual consent of the Director of COUNTY~s Environmental Management Agency and the CITY. 7. All program income pursuant t0 24 CFR $70.506(c) which may be derived from funding through this contract Will be allocated to and will be used to further the Countywide Rehabilitation Program. 8. Neithe~ COUNTY nor any officer nor employee thereof shall be responsible ~or any damage or liability occurring by reason of any action or C~issio~ of CITY or · its agents, associates, contractors, subcontractors, materialmen, laborers, or any other persons, firms,' or -corporations furnishing or supplying work service, materia~s, or supplies in connection with CITY's performance of this Contract and from any and all claims and losses accruing or resulting to any persons, firm or corporation for personal injuries or property damage resulting from or as a consequence of, CITY's performance of this Contract under or in connection with any work, authority or jurisdiction delegated to CITY under this Contract. It is also understood and agreed that, pursuant to California Government Code Section 895.4, CIT~ shall fully indemnify, defend and hold COUNTY harmless from any liability i~posed for injury (as defined by California Government Code Section 810.8) occur=lng by reason of any action or omission of CITY under or in connection with any work, authority or Jurisdiction delegated to CIT~ under this Contract. CITY shall act in an independent capacity and not as officers, employees or agents of COUNT~. 9. Neither CITY nor any officer nor employee thereof shall be responsible for any damage or liability occurring by reason of any action or omission of COUNTY, its agents, associates, contractors, subcontractors, materialmen, laborers, or any Contract No. C40753 · · 1 other, persons, firms, o= corporations furnishing or supplying w0rk, service, 2 mgte=ials, or sup?lies in connection with COUNTY ts-performance of this Contract and -' 3 from any and all cl~Lms and losses a~cruing 4 corporation £or personal injuries or property damage resulting from o= as a consequence 5 of COUHTYts performance of this Contract, under or in connec~ion with any work, 6 authority or Jurisdiction delegated to COUNTY under this Contract. It is also 7 understood and agreed that, pursuant to California Government Code Section 895.4, COUNTY 8 shall fully indemnify, defend and hold CITY harmless from any liability imposed for 9 injury (as defined by California Government Code Section 810.8), occur=lng by reason of l0 any action or omission of COUNTY under 1 1 jurisdiction delegated to COUNTY under this-Contract. COUNTY shall act in an ._]2 independent capacity and not as officers, employees or agents of CITY. 10. In the event of CITYts failure, to comply with the. provisions of th~'s 14 ContraCt, COUNTY may withhold funds and/or terminate this Contract and allocate . 15 ~unds previously assigned to this Contract to another eligible project(s) within the J 6 Urban County. 1 ? /// is /// 20 ' 22 /// 2S /// · 24 /// · /// 27 /// . 28 /// · 4 5 10 11 14 15 16 17 18 19 2O 21 22 23 24 26 27 28 Cont=act No. C40753 ,. · xN wI~a~ss WHKRROF, crt~ has caused this Cent=act to be executed by Its MaFo= . and attested by its C~e=k; COONTY has caused ~his Coat=aCt 'to.be execu, ted by .the .. ChaiL~an o£ the Board o£ Supe~ViSO=S and ce,~ti£ied by C~e=k o£ the Board, ali having been duly a~ho~ized b~ the City Council o£ CITY and the O=ange County Board o£ o Supecvisocs. CITY OF TUSTIN Dated: City Cle=k COU~ OF OR~d~GE, a political subdivision o£ the State o£ Cali£ocnia Dated: , By Chairman of the Boa=d o~ Supe=viso=s ' COUNTY SIGNED AND CERTIFIED THAT A COPY OF THIS ~ HAS Burn DEL~ TO THE CIlAIRMAN OF T~E BOARD. Linda'.D. Ruth Cle£k of the Boa=d of Supe=visozs of Ozange County, Cali~o=nia -APPROVED AS TO FOI~i.. ADRIAN KUYPER, COUNTY COUNSEL ORANGE COUNTY, CALIFORNIA u-t~: maWPS-5.3 ~/o8/88 l~xL ,c "A" to COO'HTr/CITY Contract 5 6 7 8 9 10 11 14 15 16 17 18 19 2O 21 23 24 A. S~c~..io.n 3 - Compliance with .the Prowls'ion 0£ Training gmplol~nent 9usine, ss Opportunity The CITY shall cause oc requi~e to be inserted in full in all contracts and subcontcacts £or work £inanced in whole oc pact with ~ederal £inancial assistance provided under this Contract, the Section $ clause set £orth in 24 CFR 135.20(b). The · CITY will provide such copies o£ 24 CFR Pact 135, as may be necessary for the. · in~ormation o£ pa~ties to contracts required to contain the said Section 3 clause· Section 3 requices that to the 9reatest extent ~easible, opportunities for . tcaininq and employment be made available to lover income residents within the unit local qovernment oc metcopolitan aces. (or non-metropolitan county), in which the project is located. In addition, to the qreatest extent £easible, contracts for vo£k in · cor~nection with the pro~ect shall be awarded to business concerns 'which are located in, or in substantial pact owned by, persons residinq in the same unit of local qovernment o~ met~opolitan aces (o~ non-metropolitan county), in which the pro, bet is located. The parties to this contract will comply with the p~ovisions of said Section 3, and the requlations issued pursuaBt thereto by the Secretary of Rousinq and Urban Development set forth' in 24 CFR 135, and.all applicable rules and orders of the Department issued thereunder prior to the execution of this contract. The CONTRACTOR shall take aPPropriate act[on pursuant to the subcontract upon a findinq that the subcontractor is in violation of requlations issued by the Secretary of Rousinq and Urban Development, 24 CFR 135. The CONTRACTOR viii not subcontract with any subcontractor where it has notice or knowledqe that the latter has been found in violation of requlations under' 24 CFR 135. The' parties to this contract certify and aqree that they ace under no contractual or other disability which would prevent them from complyin9 with these requirements. (Source: Title 24 CFR 135 ~evised B. Equal Employment Opportunity 'i In ca~ryinq out the p~oqram, the CITY s .ali not discriminate aqainst any . ~ ~it "~," to ~/¢X'I'Y Contract 7 8 9 10 11 13 14 15 16 17 18 19 21 24 t'er~ination; rates of pay or other ~orme o£ coeq~en~ation and selectio~ ~or' training, i~cluding apprenticeship. The ~ntrac~ agrees ~ ~t in ~nspicuous places, avaiLabLe to ~loyees and applica~s ~o~ e~io~ent, notices ~ ~ provided setting ~o~th ~e p~ovisi~s o~ ~is ~isc~hinati~ clause. 2. ~e contractor will, in ~X ~licita~io~ or ad~rtisements e~lo~s plaid b~ or on ~hal~ o~ ~e ~ntrac~r state that all ~li~i~ a~licants will r~eive ~eeideration ~o~ e~l~nt wit~ut r~ard to ra~, ~lor, religion, sex or nation~ origin. 3. ~e ~t~ac~r will se~ to each ia~r uni~ or representative o~' workers with which he has a ~ll~tive b~qaining agreement or o~er ~ntract or ~derstanding, a ~tice ~vising ~e said la~ ~ion or ~rker'g representatives o[ the ~ntrac~'s ~iment ~er 8~tion 202 o~ ~utive O~de~ ~246 o~ Septe~e~ 24, ~96S, ~d sh~l ~t ~pies o~ ~e noti~ on ~nspi~ous pLaCes availab~e to e~lo~es and appli~nts ~or e~lo~ent. 4. ~e ~nt~actor ~ ~~ ~ikh a~ provis~ons o~ Ex~ukive Orde~ o~ ~pte~e~ 24, ~965 a~ o~ ~e r~es, ~atio~ and relevant o~de~s o~ ~e o~ La~. 5. ~e ~nt~ac~ eill ~urn~sh a~l infor~ation and re~rts re~ed Ex~utive Orde~ ~246 o~ ~pte~r 24, ~965 ~d by 2he r~es, ~egula~ons and o~de~ ~he S~re~a~ o~ La~ o~ ~s~nt khereto and' ~i~ ~r~t access ~o his ~ks, records and ac~un~s b~ ~e ~p~ment and ~e S~re~ o~ ~~ ~o~ ~poses of ~nves~iga~o~ ~o as~a~n ~li~ce ~ith such rules, regulations and o~de~s. 6. In ~e e~nt o~ 2he ~n2rac~'s non~p~ance ~ikh ~e nond~scr~m~na~ion clauses o~ ~h~s ~n2~ac~ or ~ith an~ o~ such ~u~es, ~egu~a~ions or o~de~s, 2h~s ~nk~act ~a~ be canceled, ken,hated o~ sus~nded in ~e or ~n p~ and ~he ~nk~acto~ ~a~ be d~l~ed ~ne~iq~ble. [o~ ~u~khe~ ~vern~ent contracts o~ ~era~y . assisted ~nstruction ~ntract in ac~rd~ce ~i2h pr~edures authorized in ~u~ve Orde~ ~246 of Sepke~er 24, ~965, o~ b~ ru~es, ~equ~ations or o~de~ o~ ~e Secre~ ~ it 'A' to COUN'~/¢~ Contract 4 ' :1 contracts and ~ederally assisted construction contracts ~=s~n~-~o ~e ex~u~ive order 2 and wi$~ ca=cy ou~ su~ sa~ons a~ ~na~ies ~o~ vio~a~on o~ e~ o~=~i~y 3 c~ause ~ uy ~ i~s~ ~n ~n~=ae~o=s and su~n~cac~o=s ~ ~O cc ~e .. 4 ~='pu=s~n~ ~o P~ XX, S~p~ a o~ ~e ~u~ive ~de=. ~n'addi~ion, ~he ~ agrees ~a~ i~ i~ ~ails. o= refuses ~o ~ly with ~ese ~de=~kings, ~e C~ may 6 ~ake ~y o~ all o~ ~e ~oll~ing actions: ~ncel, resinate o= su~nd 8 CI~ ~e= ~e p=~=~ wl~ =es~ ~o which' ~e ~ail=e o= =e~us~ ~cu==ed 9 sa~is~ac~y assurance o~ ~u~u=e ~li~e has ~n =~eived f=~ such ~0 (~u=ce= H/~ ~ding Agreement' J4 an~.~u~ive O=~e= 11246, m=~ I~, Subp=~ ~1 S~on 202, T~e 24 C~ 130, =evis~ ~=il 1, 1984.) "~ ' C. ~eral ~= S~anda=~s ~ ~cep~ vi~ ces~ ~ ~he cehabiL~a~ion o~ cesiden~i~ pco~c~y designed ~4 floc cesiden~ia~ use ~o~ ~ess ~n eigh~ ~lJies~ ~e CI~ and a~ ~n~c~ocs engaged 15 ~dec ~n~cac~s in ex, ss o~ $2~000.00 (~ ~ous~ ~ars and no/~00) ~oc ~he 16 ~ns~cuc~ion~ pcos~u~ion~ ~~e~ion oc ce~ic o~ any building oc ~ck ~inan~d 1~ who~e oc in p~ wi~h assis~a~e Pcovid~ undec ~his ~n~ac~, sha~ ~~y wi~h 18 ce~i~emen~s ~c~aining ~o such ~n~cac~s nd ~e app~i~b~e ce~i~emen~s o~ ~e 19 ceg~a~ions o~ ~e Dep~en~ o~ L~c '~dec 29 ~ Pac~s 3 (Co~and Ac~)~ 5~ ~d 5a 20 (Oavis-Ba~n ~)~ go,thing ~e ~en~ o~ wages nd ~e ca~io o~ appcen~ices and 21 ~rainees ~o ~oucne~an= ~ovid~ ~ha~ i~ wage ca~es highec ~han ~ose ce~iced ~der' 22 such ceg~a~ions .a~e i~sed by s~a~e of ~a~ ~aw~ ~h~ng hece~ec is in~ended ~o 23 relieve ~he C]~ of ~s ob~iga~ion~ i~ any~ ~ ce~ice pa~en~ o~ ~he highec ca~es. The ~4 CI~ sha~ cause oc ce~ice ~ ~ insetted in f~ in ~ such ~n~rac~s sub~ ~o such ceg~a~ion~ pcovisions mee~ing ~e ce~icemen~s o~ 29 C~ 5.5 and ~oc such 26 ! ~n~cac~s in ex, ss o~ SL0~000~ 29 C~ 5. ~e "F~eca~ ~c S~andacds Pcovisions" · [~ (~D 40~0) ~e m~e p~ o~ ~his ~n~cac~. No award of ~e ~ntracts ~ve=ed ~der this section of ~he ~n~rac~ shall ' ,. ;: .. ]~ .t '~' to C(XTHTY/CITY Contract 9 10 11 14 15 16 17 18 19 2O 21 22 23 24 . 1 the regulations, issued pursuant thereto (24 CFR Pact 570.602), which provides that no 2 person in the Unitid States shall on the grounds o£ race, color, national origin, or .. sex, be excluded fro~ pacticipation in, be denied the .benefits of, or be subjected to i .J 4 :; discrimination under, an~-program or activity funded in whole or in part with funds 5 .. provided under this Pact. 6 !1 4. Executive Order 11063 on equal opportunity in housing and ?!! nondiscri~Lnatio~ in the sale or rental of housing built with Federal assistance. · $ (Source: Title 24 CFR Pact 570.601, revised April 1, 1984) .~-. Accessibllity/~sabilitZ of Facilities and Buildings ~0r PhysicallZ Handicapped The CITY in any activity directly or indirectly financed under this contract shall require every building or facility (other than a privately owned residential structure) designed, constructed, or altered with funds provided under this Part to comPly with the =A~erica~ Standard Specifications for Making Buildings and Facilities Accessible to, and Usable by, the Physically Handicapped,' Number A-117.1-R 1971, subject to the exceptions contained in 4! CFR 101-19.604. The CITY will be responsible for conducting inspections to insure comPliance with these specifications by any contractor or subcontractor. (Source: 24 CFR Pact 570.202(E), revised April l, 1984) F. Relocation 1. The CITY in any activity directly or indirectly financed under this contract shall: a. To the greatest extent practicable under State law, comply with Sections 301 and 302 of Title III (Uniform Real P~operty Acquisition Policy) of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 and ':I will comply with Sections 303 and 304 of Title III, and HUD implementing instructions at 26 il 24 CFR Part 42; and 27 i~ . b. Znform affected persons of their rights and of the acquisition 28 t; ' , policies and procedures set forth in the regulations in 24 CFR Pa~t 42 and 570,606 · it "A" to ~/CI~ Contract 1 4 5 6 7 $ 9 10 11 13 14 15 16 17 18 19 2O 21 22 23 . Funding Agreement IS ~nd 24 CFR Part 35 and $70. 608 ' revised April. !, 1984) H. Flood Disaster This -Contract is sub~ect to the requirements of the Flood Disaster P~otection Act Of 1973 (P,L. 93-234). Ho portion of the assistance provided under ~his Contract is approved for acquisition or construction purposes as defined under Section 3(a) of said Act, for use in an area identified by the ~ec~etary as having spocial flood hazards, which is located in a c~UUunity not then in compliance with the ~equi~ements ~or participation in the national ~lo~d insurance p~ogram pursuant to Section 201¢d) of Said Act; and the use of any assistance provided under this Contract fo~ such acquisition o~ construction i~ such identified azeas in communities then po~ticipoting in the national, flood insurance program shall be subject to the mandatory purchase of flood insuzance requirements of section 102 (a) of said Act. Any Contract o~ Agreement for the sale, lease or other transfer of land acquired, cleated, or inproved with assistance provided under this Contract shall contain, if such land is located in an area identified by the Secretary as having 'special ~lood hazards and in which the sale of ~lood insurance has been made available · under the National Flood Insurance Act o~ 1968, as amended, 42 u.s.c. 4001 et seq., provisions obligating the transferree and its successors o~ assignees to obtain and maintain,, during the ownership of such land, such flood insurance as ~equired with ~espect .~o ~inancial assistance for acquisition o~ const~uction purposes unde~ Section 102 (a) of the Flood Disaste~ P~otection Act of 1973. Such p~oVisions shall be ~equired notwithstanding the fact that the construction on such land is not itself funded with assistance provided under this Contract. (Source: ~/CD Fundi. ng Agree- 24 iJ ment J3) - t! The cI~/ sha~l comply with the provisions of ~xecutive O~de~ 11296, relating 'i · 26 if, to evaluation of ~ hazards and ~ut~ve O~der ~L288 ~e~at~ng to ~e prevention, 27 ':. cont~o~ and abatement o~ wa~e~ po~ution. (~u~ce: Ti~e 24 C~ 570.605 ~ev~sed April 1,. 1984) - ,-. . ].'.Violating Pacilities. 4 ~4 1984) 19 20 21 24 .. 4. An Agreenent 'by the' contractor that he will include or cause to be included the criter'~a and requirements in paragraph (1) t.h~ough (4) of this section in every non-exempt subcontra~'c and requiring that the contractor will take such action as the Government may direct as a means of enforcing such p~ovisions. In nc event shall any amount of the assistance provided under this contract be utilized with respect to a facility which ham given rime to a conviction under Section 113 (c) (1) of the Clean Air Act of Section 309(c) of the Federal Water Pollution Control Act. (Source: H/CD Funding Agreement #6) J. Management Con~liance - The CITY in any activity directly or indirectly financed under this contract. shall comply with regulatio .ns, policies, guidelines and requirements of OMB Circular No. A-102, Revised, and Federal Managgment Circular 74-4: Cost principles applicable to grants and contract withzState m~ local gov~Trduents, and Federal Management Circular 74-7: Uniform Administrative Requirements for grant-in-aid to State and lo~al · governments as they relate to the application, administration, acceptance and use of Federal funds under this Part. (Source: Title 24 CFR Part 570.200(4) revised April 1, K. Obligations 'of Contractor with Respect to Certain Third Part~ Relationships The 'CITY shall remain fully obligated under the provisions of .this contract notwithstanding its designation of any third party or parties for the undertaking of any part of the program with respect to which assistance is being provided dnder this contract to the CITY. Such third party or parties shall comply 'with all lawful require~nents of the CITY 'necessary to insure that the program with respect to which assistance is being provided under this contract to the CITY is ~ar=ied out in 26 Ii. accordance with the CITY's assurances and ce~tifications, including those with respect t~ to the assumption of environmental responsibilities of the' CITY under Section 104(h} of :: the Housing and Community Development Act of' 1974. (Source: H/CD-Funding Agreement ~., Jit ~A~ t.o C~/CXTY Contract' · P. De~i~ition~ 2 4' 5 6 7 8 9 10 '11 ~3 14 15 16 17 18 19 2O 21 22 ii/// 23 ~!!/// 26'~!/// 27 ;! · . III Throughout these Special Provisions the ~eaning o£ words shall be that meaning given by the act, regulation, Executive Order, Federa~ Managemen~ Circular, aqreement, or rule cited herein as the source £or the section in which the ~ord appears. (Source~ Orange County Counsel) 9. Note Federal ~anaqe~ent Circular 74-7 has been replaced with O££ice o£ ~anagement and Budget (O~B) &-102. III III III III III III IM III III ' III III III III 28' JM: bjgAWP2-5 . -13- 06116/86 757.02 EXHIBIT B~ Con,:race No. C60753 754.01 55.0 744 744.03 52 .O2 06 CDBG TARGET AREAS · Low/Moderate Income Housing & · Slum/Blight EXHiBiT 'C' (~EV~SED) COUNTY OF ORANGE ENVIRONMENTAL MANAGEMENT AGENCY HOUSING/CC~WUNITY DEVELOPMENT PROGRAM OFFICE 1200 N. Main St=eet, Suite 600 Santa, Ana, California 92701 App~:oved bY the Board of Supervisors SePtelttbel: 18, 1984 o. HOME IMPRO~ PROG~ POLICY MANUAL Table of' contents Page General P=ovisions i Section 1 Section 2 Section 3 Section 4 Section 5 LOW INTEREST LOANS 1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 1.10 Low Interest Loans Eligibility Requirements -Rental Property Mobilehome Applicant's Income FHA Title I Insurance Eligible Improvements Tempocary Relocation Assistance Processing Low Interest Loans Truth-In-Lending Requirements DEFERRED PAYMENT LOANS 2.01 2.02 2.03 2.04 .2.0S 2.06 2.07 De£e=red Payment Loans Approval o£ De£erred Payment Loans Eligibility Itequiremen~s Applicant's Income Eligible Improvements and Coets Temporary Relocation Assis~ance Processing Deferred Payment Loans SPOT REHABILITATION LOANS 3.01 Spot Rehabilitation~Loans 3.02 Processing of Spot Rehabilitation Loans REHABILITATION GRANTS 4.01 Rehabilitation Grants 4.02 Processing Rehabilitation Grants REBATE PROGRAM 5.01 General 5.02 Applicant Eligibility 5.03 Eligible Repairs 5.04 Workmanship 10 15 15 16 16 17 17 ]:9 19 20 20 20 21 22 22 22 23 APPENDIX A PROPERTY REHABILITATION STANDARDS 24 6enera,1 ~rovisiont A. PurPose of' Program The Rome Improvement Program provides below market interest rate loans and grants to rehabilitate residential properties throughout unincorporated areas of Orange County, and in particular areas designated by the Rousing and Coeuaunity Development Program Office (H/CD) and approved by the U.S. Department of Housing and Urban Development (HUD). The primary objectives are to upgrade and preserve viable urban com~unities to principally benefit persons of low/moderate income. . B. Distribution of Funds _ The rehabilitation and preservation of housing is one of the key eligible activities per~itted and encouraged by the CDBG Act. The County Board of Supervisors, in keeping with the intent of the legislation, authorized a signi~icant portion of its annual CDBG funds to be used for a Rome Improvement Program. Approved R/CD funds shall be reserved for loans and grants to low/moderate income and qualified applicants, as dete~ined by various approved Rehabilitation Programs. C. Funding Sources MaJor'fundi~g comes from the Rousing and Community Development Block Grant Act (CD~).o£ 1974, as amended, by the United States Rousing and Urban Develol~aent Department (RUD). Additional funding sources may include, but not be limited to, other federal or state programs as available, plus private funds which may result from leveraging. When necessary, one or more funding sources may be used to cov6r the entire cost of rehabilitating a particular housing unit(s). D. Applicability of Other Federal/State .Regulations While all rehabilitation loans are subject to the requirements of this manual, there are special provisions and limitations on the making of rehabi~itation loans depending on the type of project or program area. Consequently, in addition to the provisions of this Policy' Manual, rehabilitation loans made on property under this program are subject to the rules and regulations of the CDBG Act of 1974 as amended, by HUD, and regulations governing the use of other state or federal funds which may become available. E. Financial Institutions Upon recommendation by H/CD Program Office, the Board of Supervisors may approve contracts with one or more financial institutions to process loans/grants for the rehabilitation of single-family and multi-family units. ~l:~licat~on Pee The County o£ Orange and the financial institutions shall ~aintain an application file for each application it processes. The file maintained at the financial institution shall be separate from, and in addition-to, any other file maintained by the County of Orange.' Copies of the financial institutio~'s files shall be made available to the County of Orange, HUD, or appropriate state o2 federal officials, upon an appropriate request. Author ! The Director of the Environmental'Management Agency (EMA), is responsible fo= the County Home Improvement, H/CD. The Manager of EMA~s H/CD Program Office has been designated by the Director to be responsible for the Home Improvement Program. The Rousing Program Sectio~ Chief may act on behalf of the H/CD Manager if so designated. The above designated officials are authorized to execute documents necessary to effectuate and further the purposes of the program; such as property reconveyance, lien releases, subordination agreements, assumption agreements and other 'instruments necessary to adjust security, all in accordance with the guidelines established in this policy manual as adopted by the Board of Supervisors. R. SecuritZ Agreements Subordination agreements, assumption agreements and other instruments necessary to adjust security can only be allowed when: 1. The revised total amount of loans encumbered does not exceed 80 percent of the value of the property, or 2. Modified transaction does not threaten the secured interest of the County. , 3. Approval and authorization is obtained from the H/CD Manager. 4. Modified security agreements will only'be authorized when it is necessary to implement the Program. I. Asset Limitations No loans or grants shall be made to property owners whose net assets exceed $75,000. Excluded from the calculation of net assets subject to this provision, will be the principal place of residence, household. items' and th~ value of an ownership interest in small business. This provision does not apply to landlords applying for rehabilitation of rental property. J. CDBG Act of 1974- Authorization · The following ,sections outline the guidelines and policy p~ocedures fo= the Countyts Home Improvement Prog~.am. Section 570.202 is the specific p~ovision of the CDBG Act of 1974, as amended, 'which authorizes ~he County to make CDB~ funds available ~o= home improvement purposes. Whenever the use of funds and/o= activity under . this program 'is in doubt, Section 570.202 shall prevail. 1. Section 1.01 Low lnte, r. est Loans A. Method The County makes available low interest loans to qualified applicants through the Home Improvement Programs and financial institutions approved by the Board of Supervisors. B. Approval A rehabilitation loan may be approved only when the following conditions exist= lo An executed Grant Agreement exists between' the County of Orange and HUD under Title I of the CDBG ~t of 1974, as amended, and 0 Executed agreement(s) exist between a financial institution(s) and the-County of Orange to provide rehabilitation loans to property owners, , · Or : 3. Agreements have been executed with other federal and/or state agencies to make funds available to the , County. C.' Notification of Loan Decision Applicants will be notified of loan decision by the contracting financial institution after applications have been accepted and.processed by H/CD. The a/CD office will retain in its files the copies of notification to the applicant of loan decision by the financial institution. No rehabilitation work is to be performed prior to this notice by the financial institution and the County's Notice to Proceed. In case of emergency health 'and safety conditions or special circumstances the H/CD Manage= may authorize work to proceed prior to notification from the financial institution. D. Restrictions on Number of Loans The number of low interest or deferred payment rehabilitation loans which may be made to any property owner under the Home Improvement Program is one (1) unless waived in writing by the H/CDManager. Requests for a waiver of this restriction shall be made by the loan applicant, in writing, to the Manager. Requests to the Manager must be accompanied by the recom~endation of the Housing Program Section Chief. If a request fo= a waiver of this one (1) loan restriction is denied by the Manager, loan applicant may appeal the decision to the Director of EMA. Section 1.02 Eligibility Recluirements A. Property Eligibility Requirements A rehabilitation loan may be made to properties l~cated within target areas designated in the County of Orange H/CD Block Grant Application. Under the Spot Rehabilitation Program, loans may also be made to low/moderate income persons outside of target areas, but within any county unincorporated area or contracting city. The property must need rehabilitation to comply with the Property Rehabilitation Standards adopted by the Board of Supervisors, as amended (Appendix A); B. Applicant Eligibility Requirements To be eligible for a housing rehabilitation low-interest loan, the applicant must demonstrate adequate ability to repay the loan, be of legal age, and meet the eligibility guidelines. A rehabilitation loan may not be approved by the financial institution if the applicant's record shows a disregard for former credit obligations or if there is an indication of inability to make the requi~ed payment. · A loan applicant must be the owner (s) of the property, or the purchaser of the property under a land sales contract or any similar contractual agreement for the purchase of real property. An applicant having a lease for ~ fixed term expiring not less than six calendar months after the maturity of the loan may, with the owner's consent, apply for a loan. C. Income Limits The Housing and Community Development Act of 1974, as amended, requires that programs principally benefit persons of low/moderate income (persons making 80 percent or less of the County's median income as defined by HUD). In keeping with the intent of the legislation to benefit low/moderate income persons and preserve and upgrade neighborhoods, the following income requirements for participation in the program are established= Three interest rates are offered under the Home Improvement Program= three (3), six (6), and nine (9) percent. Three (3) Percent Interest Loan Priorlty shall be given to applicants whose annual income is within the low/moderate income limitations prescribed by HUD. This income is equivalent to 80 percent of the median inCOme for the Anaheim-Garden Grove-Santa Aha Standard Metropolitan Statistical Area (SMSA). The median income for the SMSA area is updated periodically by HUD. This income limitation shall not apply to investor-owners participating in -9- the Rental Rehabilitation Program. The County H/CD P=ogram has identified by. formal application to HUD specific target area for concentrated use of Housing and Co~munity Development funds. Appli~ants, who live within the designated target areas and whose incomes are at or below these limits are eligible to apply fo= three (3) percent loans. Interest rates for SpOt Rehabilitation loans made outside of an approved target area shall also be three (3) percent for homeowners who meet the 80 percent median income criteria. Fo= further detail, see Section 3.01 on Spot'Rehabilitation. The R/CD Manager may raise these income limits by 20 .percent upon staff confirmation of the existence of a health and safety hazard. . Six,, (6),Percent and Nine (9) Percent Interest Loan,,s In order to provide an.ince~tive to the rehabilitation of substandard rental units for the benefit of L/M income tenants, Six (6) and Nine (9) Percent Interest Loans may be made to qualified rental property owners on the condition that these owners agree to comply with the requirements of Section 1.03 of this PolicyManual. D. Loan Amount The maximum for a loan made shall be $45,000.00 for structures of one the three units. For four or ~o=e units the maximum loan shall not exceed $15,000.00 pet unit. A mobilehome rehabilitation loan may not exceed $10,000.00 unless waived in w~iting by the R/CD Manager. , E. Refinance As allowed 'by Section 570.202(c) (2) (ii) (B) of the Housing and Community Development regulations, refinancing may be · permitted it is necessary to complete the rehabilitation work for low/moderate income applicants. The section reads the that block grant funds may be used for 'Refinancing existing indebtedness secured by a property being rehabilitated if such refinancing is necessary or appropriate to the execution of the Community Development and Housing Plan.' If refinancing is over 20 percent of the clients indebtedness, Housing Program Section Chief must obtain Manager's approval. · The loan applicant is subject to the sa~e loan limits described in D above. Fo= refinancing delinquent loans see Section 1.09 (13). · Section 1.03 Rental P~,,o~erty . Rental properties ..may be eligible, at the presen~ time, under three programs: 'The County's'Investo?Owner P,:ogram, the Section 8 Moderate Rehabilitation Prograi and the Rental Rehabilitation Program. Under these p og ams, ollowing ehabili a on, the majority the units shall be occupied by low- and moderate-income persons at a. ffordable rents. Other programs may become available when approved by the County Board of Supervisors..' A. .C. ount~' s Investor-owner. Program Under this program, rental property units to be rehabilitated will be made available to low/moderate income renters. Owner must assure the H/CD office in writing that no displacement of renters will occur and agree to accept tenants with Section 8 · rental assistance or vouchers. The Housing Program Section Chief will make a determination of acceptability of these efforts., Applicant may appeal negative finding(s) to the H/CD Manager. In the event no subsidy rental assistance is available, owner must agree-to keep rents affordable for seven (7) ~ears to lower income persons .or famiii'es. (i.e., those earning 80 percent or less of the County's median income as defined by HUD). ~ B. Section'8 moderate Rehabilitation Program . Owner must also assure the H/CD office in wTiting that no displaceuent Df rentersowill occur, and that units to be rehabilitated will be made available to low/moderate income renters. Owner must agree to accept Section 8 Certificates or vouchers that wil~ be provided through the County of Orange Housing Authority or a similar program. The Housing Program Section Chief will make a determination of acceptability of these efforts. Applicant may appeal negative finding(s) to the H/CD Manager. C. Rental Rehabilitation Grant Program This Rental Program provides for the rehabilitation of rental units in selected target areas. 'Under this program, a grant or a DPL up to $5,000.00 may be made to a rental property - owner on the condition that units to be rehabilitated will be 'made available to low/moderate income renters.and owner agrees for a period of ten (1) years after the project is.completed not to convert the rehabilitated units to condominium ownership. Owner must agree to accept Section 8 Certificates or vouchers for tenants per unit rehabilitated that may be available through the Orange County Housing Authority or a similar program. The Housing Program Section Chief will make a determination of acceptability of these efforts. Applicant may appeal negative finding(s) to the H/CDManager. Section 1.04 Mobilehomes In order t~ provide mobilehomes owner~occupants with a financing jmechan!sm to ~ehabilitate their units, the County has established program. The program provides for loans up to $10,000.00 and grants up to $5,000.0'0. Where conditions warrant,'the Manager may increase the grant amount, not-to exceed twenty percent for imminent hazard to the health and safety of the applicant or the community. For the purpose of Mobile Home Rehabilitation, all mobile homes are considered real properties. Besides the requirement for income eligibility, the following conditions must be satisfied before a loan can be made to a mobilehome A. Owner must show proof of ownership either by: Possessing a State of California of Housing and CoununityDevelopment Certificate of Title, Mobilehome, or 2. A CaliforniaDepa=tment of Motor Vehicles 'Ownership Certificate (known as a pink.slip). 3. Other documents as may be required by HUD or the State R/CD Department. B. The remaining economic life of the mobilehome must'be at least five (5) years or more. C. ~obilehome must be permanently anchored to the ground to resist wind and seismic forces. Section 1.05 Applicant's Income A. Type of Applicant In order ,to make an eligibility determination for a rehabilitation 10an; an owner-occupant applicant is classified as being either Iow/moderate income or above Iow/moderate income or an investor-owner. Low/moderate income is 80 percent of the county's median income, as defined and periodically updated by HUD. B. Income Components The following is a list of components that co. mprise the total income allowed an applicant for a rehabilitation loan. The gross income of the applicant and his/her family is used to determine eligibility. However, if a co-signer or heir is on the title to the property, but does not reside in the property and does not contribute to the income, a notarized-statement of non-support will be required in order to exclude the co- signer ' s o= heir ' s income. The applicant' s family includes the aPPlicant and any other persons(s) related by blood, ma~riage, or operation o£ law, who sha~e the same dwelling unit and/or have owne~$hip interest in the property. An applicant's gross income must be established on an annual . basis £or the preceeding tWo yea~s at the time o£ applying a rehabilitation loan and may inc[ude~ but is not limited to: lo The applicant~s gross earnings. Spouse's gross earnings and contributions ~rom other members of the family who share the household must be considered ii employment and earnings a~e on a ~egular basis. 0 Other income regularly received by the applicant or his/her family from any source. . Income from assets including savings, stocks, bonds, vacant land, etc. Income from real estate, including rental units on the property to be rehabilitated is based on net rental income. If the applicant has not owned the property lot two or more years, the County of Orange shall estimate the income and expenditures on the available data. Sell-Employment If self-employed, ~he averse allowabl% income trom the two most recent in~m~e tax returns shall be used in determining applicant's eligibility. The following method shall be used in determining present income for selt-employ~ individuals: plus , equals Net Income Net profit or loss Depreciation and Depletion .plus Other Income (wages, interest, etc.) equals Allowable Income C. Allowances Gross income of the applicant shall be reduced by the following allowances when applicable. Medical expenses for a major illness or chronic condition which are not covered by insurance. Supporting documentation must be submitted to H/CD as evidence ota major permanent illness or chronic condition. . Unusual expenses or amounts paid £or the care o£ minors under 18 years of age. or for the care of disabled or handicapped family household members, but only where such care is necessary to enable a family member to be. gainfully employed. D. Exclusions from Income The following income is excluded in determining income eligibility: 1. The income of a child 18 years of age or younger; 'Child support, including social security or pension funds, and income from a trust fund established for the child; . The income of a child who is a full-time student living at home, and is 21 years or younger; . The income of a co-sig~er or heir who does not reside on property may be excluded p~ovided that a notarized statement of non-support is submitted. Such co-signer or heir may not be counted as a family.member for the pu£pose of income-level calculation. Section 1.06 ~ Title I Insurance Whenever possible, loans will be Processed by the financial institution for FHA Title I Insurance. Section 1.07 Eligible Improvements A. General This section sets forth, but does not limit, examples of eligible and mandatory improvements under the rehabilitation program as well as ineligible improvements. When the eligibility of a proposed improvement is in question, Section 570.202 of the CDBG Act of 1974, as amended, is the final authority. · B. Eligible Improvements . Additions and alternations to prolong the livability or usefulness of existing structures such as rooms, porches, stairways, closets, bathrooms, and entrances ace eligible, as determined necessary by the H/CD'Senior Building Inspector. . Exterior work to help preserve or protect structures, such as grading, painting, roofing and siding, is eligible. . . Interior work to ~ake a structure more livable such as painting, papering, plastering, new £1ooring and tile work is eligible. Also eligible.are repairs, =estoration or -- replacement of impo=rant parts of structures such as heating systems, plumbing repai=s/ electrical repairs and certain kitchen appliances in residential structures. 5, Clearance, site preparation and site acquisition where a unit is determined not suitable for rehabilitation and a replacement house plan has been approved and ~unded. 0 Items conside=ed necessa=y to provide handicap accessibility and/o= remove architectu=al barriers to the handicap. . Items necessary £or histo=ical restoration/ p=ese=vation. C. Mandatory Improvements Hazardous 'conditions which are a direct th=eat to the health, safety and gene=al welfare of occupants as defined'in the Uni£o=m Housing Code and/o= Property Rehabilitation Standa=ds as defined by Appendix A,' must be corrected. D. Ineligible Improvements The following improvements are not eligible: Barbecue pits, bathhouses, bu=glar protection bars, dumbwaite=s, wet ha=s, greenhouses; greenhouse windows, airplane hangars, kennels, outdoor fireplaces or hearths, photomu=als, swinging pools, television antennae, tennis courts. Materials, fixtures or equipment of a type or quality, which unreasonably.exceeds that customarily used in properties of the same general type.as the property to be rehabilitated. Section 1.08 Temporar~ Relocation Assistance A. General This section sets forth a description of temporary relocation benefits to be made available to persons and-families who are displaced ~rom their homes as a'result of the County's Home Improvement Program. Cost may be shared by the County and the displaced person(s), or landlords in the case of rental rehabilitation. B. Conditions RequiriNg Temporary Relocation If any of the following causes or conditions occur as a result of the Home Improvement Program, it mai be necessary for the persons or families to relocate to another dwelling on a temporary basis= . · . Water system is shut off for any extended period of days for plumbing repairs. - · . Electrical service becomes non-operable while making repairs to wiring. 0 Repairs which create dust and other ~onditions which would aggravate allergic condition of occupant(s). . Structure is to be fumigated for termite control and infestation. Hazardous living conditions which result from structural changes during construction. . Sanitat. ion £acilities; e.g, tub, wash basin, toilet become non-operable. . Contractor requires relocation of occupants to per£orm repairs and such requirement has the concurrence of the Housing Program Section Chief and the occupant. C. Eligibility Requirements Applicants approved'for a loan or a grant who must find temporary aerations as per Section B above are eligible for relocation benefits. Clients must actually secure and occupy an alternative dwelling unit in order to receive payment. D. Amount of Assistance , Benefits will be made available for a period determined by the Manager but not to exceed the term of the rehabilitation contract. County will pay the cost of the temporary accommodations up to a daily maximum equal to the Housing Authority's rent limitations prorated on a daily basis. E. Procedures for Securing Temporary .Relocation Assistance 1. Contractor or Rehabilitation Cost Specialist must submit letter to the H/CD Program Office requesting vacating of unit and specifying amount of time unit must remain vacant. o Request £or va~cat'ing o£ .premises must be approved,. in writing, by rehabilitation staff and authorized by H/CD Manager. Person displaced presents written quote from accomaodation to rehabilitation staff. Staff will. then verify'that displaced persons occupied unit and staff will also verify amount of quote, . Rehabilitation staff will present claim form to Auditor-Controller with a request for payment. Payment will be made payable, jointly, to persons displaced and persons who provided accommodation. Section 1.09 PC.ocessing Low Interest Loans A. General This section sets fo=th the steps which are to be followed in ~he l~ocessing of a rehabilitation loan: lo Initial Contact Hankering effort/strategy includes, but is not lhaited to~ Press releases to ~etropolit~n 'and local newspapers; Public Services Announ~nts (PSAs) for television and radio; articles in magazines, newsletters and newspapers; paid advertisement in the print media; staff appeara~=es on public service radio and television programs; flyers distributed bjfmail or door-to-door contact; and presentations using a prepared rehabilitation slide show or other graphics at community meetings. ' Upon initial contact, an application will be mailed o= given to the applicant. 2. Loan Application I£ requested by applicant,.loan applicatio9 will be explained to homeowner by loan counselor who may assist in completing necessary fo~ms. Otherwise, .loan application will be mailed o~ given to applicant who will complete application. 3. Preliminary Approval of Funding Authority Complete loan application will be fo£warded by H/CD staff to financial institution and, if applicable, to the appropriate state or federal agency for funding authority to: . . . 0. a. Verify program eligibility of applicant. b. .Verify that-applicant is owner o£ property to be improved. c. Verify applicant's income and employment. ~e income tax returns for the previous two years will be obtained by' H/CD staff. d. Complete credit investigation. e. Advise homeowner in writing of approval/ disapproval. When app=opriate, items (a) through (e) maybe required to be performed by the County prior to submittal to funding sources. Termite Inspection A free termite inspection will be arranged by the County for the homeowner or property owner approved for a rehabilitation loan. The termite company will · submit the inspection, results., to the rehabilitation specialist for inclusion in the work write-up cost estimate. Work Write-up/Cost Estimate A work write-up/co~t estimate will be compiled based on the initial inspection and the termite inspection report. Homeowner will be given a copy of the write-up for approval 'and will be advised of estimate of loan necessary to complete . rehabilitation work. Bid Process a. Contractor Unless homeowner elects to conduct his/her own bid, provided regulations permit, bid packages will be prepared by H/CD staff, and, if possible, bids obtained from at least three (3) qualified contractors. (This requirement is waived under the Mobile Home Rehabilitation and Rebate Programs where the property owners are responsible for the selection of qualified contractors for the Job). 'Qualified' means those contractors who are licensed by the State of California, who have applied to perticipate in the County's Home Improvement Program and who have received written . approval of their participation in the program £rom H/CD. All bids must be ' returned within 20 calendar days unless otherwise specif£ed. Bids will be opened in the presence of the homeowner and H/CD staff will review bids. Responsibility for selection of a contractor rests with the homeowner. Homeowner must, however, select a qualified contractor. Homeowner is not required to select low bid, but, bid chosen must be within 10 percent of H/CO estimate. This requirement may be waived .by the Housing Program Section Chief in cases where the H/CD cost estimate is proven not to reflect current prices. b. Owner-Builder Bomeowner shall prove to the satisfaction of the rehabilitation special~st that he/she has the ability to. perform tasks to be undertaken, includinq coordinati0nof contractor{s}. Where all. or pert o£ the work is to be Performed by the homeowner, then homeowner shall submit to the rehabilitation specialist a list o£ the materials, approximate coats for these 'items and a schedule for completion by homeowner. Only material will be rehubursable, not the labor of the homeowner or i~aediate family member. This list will be submitted to B/CD prior to preparation of bid package. Ro~~er may act on his/her own behalf to hire contractor(s) to complete various portions(s) of the work listed in the work write-up. Homeowners will identify the contractor (s) or laborers and the work items which contractor (s) or laborers will perform. Failure by property owner to comply with the above requirement will terminate his/her application. · Contract/Agreement Execution As a requirement for funding of all loans, deferred payment loans, or grants: A Property Owner A~reement must be executed between the property owner and B/CD. In conjunction with the Proper t~ Owne. r Agreement, the £ollowing contracts and/or agreements ~ill' be executed depending on me~hod o£ rehabilitation chosen b~ Client: a. Prime Construction Contract between _ homeowner and contractor o~ homeowner and sub-contractor, if applicable! i.e., owner~ builder who subcontracts any portion' o[ the agreed upon scope o[ work. b. Owne~-nuilder A~eement [o~ homeowners who are approved to do their own rehabilitation work o~ act as his/her own cont~acto~. · . In the event that homeowner wishes to p~ovide imp~ovements ove~ and above eligible work provided [or, o~ pe~[orm a portion(s) o[ the work her/ himsel£, the above contract(s) or agreement(s) shall · e[leot the total cost o[ work to be done, what the prime and/o~ subcontractor' s ~esponsibilities are and work homeowner will per[o~m. Evidence o[ availability o[ the additional [unds requi~ed must. be veri[ied and available prio~ to [unding o[ loan. 8. EXecuted Contracts R/CD may [orwa~d copy o[ [inal work w~ite-up to the app~opriate [inancial institution or appropriate [unding agency with request [or loan documents. Financial institution(s) will p~epare and lo,ward loan documents .at interest rate previously determined by H/CD and advise H/CD o[ interest subsidy due, it appropriate. Homeowner ' s patments will be in equal monthly installments, the [irst installment payment due 30 calendar days [rom note date depending on [inancial institution policy. H/CD obtains' borrower's signature on loan documents and returns all documents to the financial institution (s), if appropriate. 9. Loan Subsidy Loan subsidies will be governed by contracts with financial ~nstitutions as approved by the Board of Supervisors. 10. Notice to Proceed · No construction/rehabilitation work will begin until a written Notice to Proceed is issued by H/CD.and homeowner. - Smoke Detector (s) · Smoke de~ec~or (s) will be ~equt=ed in all rehabilitated residential structures." : 12. Loan Disbursement: a. Financial institution(s) may forward to H/CD loan proceeds in a form prescribed by the · . agency or £inancial institution and may disburse progress payments upon request of H/CD staff. Disbursements to clients will be made only after completion of inspection by rehabilitation specialist and verifica- . tion o£ billings by H/CD. Proceeds will be disbursed by one of the following methods: 1) Progress Payments (draws) Contractor may not receive less than three progress, payments except in cases where rehabilitation is of a minor nature. The progress payments shall not exceed 90 percent o£ the cost of such work items determined by the bid breakdown. Progress .payments due Contractor shall be paid a£ter County approval of receipt and ve=ificat~0n of contractor's invoice (s) and satisfactory Release of Liens o= claims for Liens, by contractor, subcontractors, laborers and material suppliers for work completed and materials installed. If no liens are recorded, a 10 percent retention will be disbursed to the contractor at expiration of lien filing period, thirty-five (35) calendar days after filing the NOtice of COmpletion. This retention may be less than 10 percent, as determined by the Housing Program Section Chief, depending on total contract amount. 2) One Lump Sum Payment may be made in one lump sum completion of all work, less 10 percent retention. Completion consists of passing final inspection and filing required release forms. I£ no liens are recorded 'retention will be disbursed to the contractor at .expiration of lien filing period, thirty-five (35) calendar days alter filing of Notice o£ Completion. 3) Homeowner Advancements Upon approval of the loan, the bo=rower (if the borrower is performing the work her/himself) may receive advancements to cover an agreed portion of the costs of materials consistent with the schedule provided in work write-up. Additional advancements may be made when work financed by prior advancements has been completed to the satisfaction of H/CD. b. Depending upon the-type and level of rehabilitationwo=k to be conducted and the amount ofloan, H/CD may utilize escrow services fo= control of .fund disbursement. 13..Loan Delinquencies The lender will provide County with a weekly, monthly, or qua~terky list of delinquent bor'~owers. H/CDwill contact the borrowers. Should a delinquency continue and bank informs H/CD that foreclosure will result, H/CD Manager, upon recommendation of Housing Program Section Chief, in order to protect County's interest, may.decide to cure the default by refinancing existing loan to a DPL if client qualifies. 14. Appeal A loan application which is disapproved may be resubmitted for -a DPL or Grant described in Section 2 and Section 3 below. Subsequent rejection may be appealed under Section 2.02B. Section 1.10 Truth In Lendin~ Rec/uirements. H/CD shall meet all state and federal truth in lending requirements. Section 2. DEFERRED PAYMENT BOANS Section 2.01 Deferred Pazment Loans. A deferred Payment Loan (DPL) is a. zero percent (0) interest loan.' DPL's are intended to assist low-moderate income persons who are unable to finance rehabilitationwork without'this assistance. The loan becomes due and payable in a lump sum upon sale or transfer of property, by any means, instrument or probate proceedings, whichever result ~n-~e shortest time for repayment. If client sells or transfers property within five (5) years of receiv~ng DPL, enti'~e DPL principal plus three (3) percent interest per annum will be.pa£d; if . sold or transferred after five years, no interest will be charged on DPL ~t entire p=inci~l will he,me due and ~yable. ~e DPL may not exce~ l~n li~ts o~ $45,000.00. Clients shall execute a heir, ~ ~M ~lys~s can be ma~e to de~e=mine if heir l~/~e=ate ~n~e ~ ~ali~ie~ to ass~e DPL, o= ~ ~e DPL 8houl~ ~ =e~d. ~1 ass~ptions o~ DP~*s shall be a~=ove~ by ~e H/~ Funding for the DPL is through the H/CD Program and/or any other federal or state programs or appropriate lending institutions under contractual agreement with the County. Funds may be loaned directly by the County to the eligible clients without the involvement of a private lending institution. DPLts can also be made to rehabilitate publicly owned residential units. In order o= preserve and up~rade affordable rental units for the benefit of low/mode=ate income tenants, a DPL may be made to investor owners who participate in the Rental Rehabilitation Programs without regard to income. The DPL will be due and payable if fifteen (15) years or at time of transfer of title; whichever comes first. Section 2.02 Approval ,of De£e==ed Pa~uent Loans. A. The c~teria ~or an approval of a DPL are: 1) Applicant must be of low/moderate income or qualified investor-owner in a target or spot area. 2) Applicant must be financially unable to repay loan with ~he exception of investor-owners in the Rental Rehabilitation Programs wher~ the applicant's cash flow after rehabilitation is not sufficient ~or debt repayment ~nd a DPL is deemednecessary to make the project financially feasible. Rehabilitation improvements are necessary to comply with existing health and safety codes. B. Approval Authority A DPL will be approved or disapproved in writing by the Manager or his designee'. H/CD shall notify applicant ~f results. A person whose application for a DPL has been disapproved may appeal to the Director of EMA for a final · decision. C. Restriction on Number of Loans The number of DPL's which may be made to any property owner under the Home Improvement Program is one (1). Waiver of limitation may be granted by the Manager. Section 2.03 Eligibili,ty .Rec~ui=ements £o= DPLs A. Applicant Eligibility Requi=eme.nts : · · · A DPL is intended tO avoid the displacement of homeowners who have. no othe~ means of £inancing ~epairs and imp~ovements which must be made to thei~ homes. A review of DPL's executed a£te~ ,Tune, 1983 shall be made every five (5) years to ~eevaluate if clients are still low/moderate income. If a family income exceeds 80 percent of the County median income at that time, the DPL will be due and payable, but may be assumed at the Countyts discretion. B. Income Limits The income limitations are those set by Section 1.02 (c) and 2.02. section 2.04 Applicant's Income Me~od of detersining applicant's income will be noted in Section 1.05. Section 2.05 Eligible I.~rovements ,hnd Cos,ts A. Gene=al This section sets forth e. xamples of improvements and costs to be financed with a DPL. · B. Eligible Improvements and Costs A DPL may be used to finance the cost of repairs and improvements to-comply with the Property Rehabilitation Standards approved by the Board of' Supervisors as amended (Appendix A) and incipient violations of these standards. DPL funds may also be used to finance the cost and installation of energy conservation materials. DPL's may also be used to remove handicap barriers and to provide handicap accessi- bility. Hazardous conditions which are a direct threat to the health, safety and general welfare of occupa'nts will be priority items to be corrected. C. Ineligible In~rovements DPL may not provide for: lo 0 New construction or expansion of the size of a structure, except in Rental Rehabilitation pr.grams o= where overcrowding wa=rants. · Materials, fixtures or equipment of a type or quality, which unreasonably exceeds that customarily used in properties of the same gene=al type as the property to be rehabilitated. D. ~nsu~ance and Property Taxes The client shall maintain adequate fire and hazard insurance with ~he Count~ listed as !o.s.s payee" ~or' the ~mount o~ the lo.a~ on' the property, as required by the Rome' Impr0~ement Program, and keep taxes current during term of DPL~ except un, er special government programs allowed for .elderly clients. E. P=og=auFees 1. Recording fees The cost of recording the Deed of Trust and other pertinent documents shall be waived as per Government Code, Section 6103. 2. Policy of Title Insurance A policy of title insurance covering the amount of the DPL shall be obtained for the borrower and the cost paid from the loan proceeds. o Tax Service Co. ROme Improvement Program may'utilize services of a- Tax Service Company. Cost shall be paid from loan proceeds. F. Maximum loan of $45,000.00 may be mede and is subject to the same 'conditions set by Section 1.02 E. of this manual. G. Escrow of Rehabilitati~n Funds · The applicant shall agree to permit the County of Orange, its agents or designees, to act as escrow agents of funds loaned through a DPL and to permit the County of Orange, its agents or designees, to disburse such funds to the applicant/borrower and the contractor in the manner set forth in the contract between the applicant/borrower and the contractor or in the contract between applicant/borrower and County in the case of an Owner/Builder, to insure the proper disbursement of such funds. The "borrower" shall be construed to be any person or other legal entity who holds title to the property being rehabilitated with the assistance of a DPL and who is legally responsible for repayment' of the loan. In the case of multiple ownership, the signature of every titleholder will be required on a Deed of Trust where the signature of the applicant/borrower is necessary. R. Assumptions for Deferred Payment Loans Assumptions of DPL's are authorized, however; new borrower's income must be established at or below 80 percent of the County's.median income. D. PL assumptions may be considered when me of ~he ffollowing occurs. 1. Judgement of Dis_solution of M. ar riage. Death of vested title holders.. Heirs of property must be from the immediate family. 3. Title of property is transferred. Section 2.06 Temporary Relocation Assistance A. PrOCessing Procedures Temporary .relocation benefits that are available to applicant receiving a DPL are those described in Section 1.08 of this manual. Section 2.07. Processin.~ Deferred payment Loans The processing of a DPL shall be the same as that of a subsidized, low interest loan as noted in Section 1.09 of this Poli. cy Manual in addition to the following: 1. Determination of Preliminary Eligibility Rehabilitation staf£ will develop necessary documentation to make determination of applicant eligibility for .a DPL. 2. Obtain Preliminary Title Report, c~,,dit report, appraisal,- if needed, and verify income. 3. Determination of Final Eligibility. After receiving preliminary title report and credit report, staff will make a [inal recomendation regarding applicant's eligibility for a DPL. Recommendation will be submitted to H/CD Manager of his designee ~or approval. . 4. Execution of Documents If eligible, applicant wi11 execute Promissory Note and Deed of T~ust. Additionally, applicant will execute DPL property ow, er agreement. O-ce all dOCuments are executed, Deed of Trust'will be recorded, Promissory Note and Deed of Trust will be held by H/CD Accounting and H/CDwill request title insurance policy covering amount of loan ~rom title company. 5. Notification of Loan Amount A 'signed DPL Approval Form will be torwarded to H/CD 'Accounting with the total amount needed ~or the DPL and the rehabilitation process will continue. B. Truth-In-Lending Requirements Truth-in-lending requirements, as noted in Section 1.10 of this manual, apply to all DPL'S. SECTION 3. SPOT REHABILITATION LOANS Section 3.01 S~o. t. Rehab. ilitation Loan · . Spot rehabilitation is a component of the Home Improvement Program.' Low interest loans, DPLts and Grants-are available to owner-occupants of low/m0derate income, living in any contract citY or cou,ty unincorpo=ated area. In order to preserve and upgrade affordable- - rental units for the benefit of low/moderate income tenants, investor- owners participating in the Rental Rehabilitation programs are also eligible to apply. Section 3.02 Processing of Spot Rehabilitation Loans Requirements for approval of Spot rehabilitation loans are those noted in Section i of this manual except: Eligibility Requirements AO Property Eligibility Requirements A rehabilitation loan may be made to any qualified · residential property,.owne~ located in the unincorporated area of the County of'Orange, or in , any part of a participating contracting city. Income Limits Spot rehabilitation loans to low/moderate income persons shall be subject to Section 1.02 C. (1) for 3 percent loans. Eligible Improvements and Costs A spot rehabilitation loan may be used to finance the cost of repairs and improvements as required to bring the property into compli~ce with the Property Rehabilitation Standards approved by the Board of Supervisors, as amended. Spot rehabilitation loans may also be used to finance the co~t of repairs of incipient violations of these standards. No general property' improvements are permitted. SECTION 4. REHABILITATION GRANTS Section 4.01 Rehabilitation Grants In order to provide a full range of financing mechanisms for the County's Home Improvement Program, a grant program has been established. This program provides a grant of up to $8,000.00 with a 20 percent supplement for materials and labor to low/mode=ate income ow~er-o~cupants. The goal of the program is to rectify emergency health or safety haze=ds in the applicant's home and to provide energy conservation. B~ction 4.02 Processinq Rehabilitation Grants A. A-rehabilitation'grant may be approved Subject to the sam~ provisions as set forth in Section 2 except as noted below= Applicant Eligibility Requirements ~ppll~ant must execute Property Owner Grant Agreement which provides that the owne~ returns 100 percent of the grant to County upon sale or transfer of title within one year of agreement execution and 50 percent of property upon sale or transfer of title transferred between one and t~o years after the executAon of the agreement. o A rehabilitation grant ma~e used to finance the cost of repairs and improvements to oomplywith the Property Rehabilitation Standards approved by the Board of Supervisors and incipient violations of these standards. Grant funds may also be used to £inance the cost and installation of energ~ conservation materials. The maximum amount of the rehabilitation grant.may not exceed the fol~.,owing: (a) $8,000.00 for conventional, single family units and $$,000.00 for ~obileha~es. (b) ~here donditions wa=rant, the Manager may increase the grant amount,, not to exceed t~enty percent (of the above) for imminent hazard to the health and safety o£' the ~applicant or the community. ., (c) $3,000.00 aaximus for minor rehabilitation (mini-grants) in approved target area. B. Mini-Grants To eliminate blight or prevent furtherdeterioration of a neighborhood, H/CD Program Office may provide small, minor repair/maintenance, rehabilitation, mini-grants to qualified residents of a low/moderate income neighborhood. Under this mini-grant program, the above resale restriction of 4.02 A (1) will be waived. SECTION 5. REBATE PROGRAM Section 5.01 Rebate Pro, ram 5.01 General The County provides limited'funding to provide rebates for previously approved home repairs which are prepaid by ~he ow.er and verified by H/CD. The rebates are made available for a minimum of $500.00 and a maximum o£ $3,000.00 £or eligible ~ome repairs completed in selected target areas. Prope:ty owners are requi£ed to obtain written p~eapproval for all wock subject to-rebate. Property. owners are requi~ed to select their own licensed contractor and to provide . itemized, paid invoices cove~ing all work. In the case of an approved owner builder, only materials shall be subject to rebate. Labor costs for owners and-family members are not subject to rebate. 5.02 Applicant Eligibiliky Homeowners who live within a target area and whose incomes are 80% or less of the County Median Income (as defined and periodically updated by HUD) are eligible for 100% rebate (up to $3,000.00) for approved work. Homeowners shall submit income tax returns to veri~y income and property tax bills to veri~y ownership. 5.03 Eligible Repairs This section sets forth, but does not limit, expenses o£ eligible repairs for the rebate program. Such repairs shall be Judged [easible to preserve and repair.the subject property through minor rehabili- tation, including exterior painting. Repairs which have not been approved in writing pr'ior to their completion shall not be eligible for rebate. The following list gives ,examples of rebate-eligible repairs: Roof repatrs/reroofing * Exterior lighting · Gutters Screens, security locks Sewer cleanout Reglazing Siding Porch repair Concrete driveway and walks Ramps for handicapped Fences Insulation Plumbing replacement Water heater replacement Energy Conservation *Roofing with wood shakes or shingles or a new roo[ over an old roof is not subject to rebate. *Rebates are not available ~o= appliances. 5.04 Workmanship The County reserves the right to inspect any work which a rebate has been applied for, and to refuse all or part'of any rebate due to poor workmanship or unacceptable materials. PROPERTY ~ILIT&TIOt~ STriDeS FOR RESIDENTIAL PROPERT?F,S COUNTY OF OI~ANGE ENVIRONMENTAL MANA~ AGENCY HOUSING/COMMUNITY DEVELOPMENT DIVISION ~ri1'7. 1983 TABLE OF CONTENTS INTRODUCTION CHAPTER 1 TITLE AND SCOPE CHAPTER 2 ENFORCEMENT PERMITS AND INSPECTIONS CHAPTER 4 DEFINITIONS CHAPTER 5 SPACE AND OCCUPANCY CHAPTER CHAPTER 7 CT. APTER 8 STRU~ REQUIREMENTS MECHANICAL REQUIREMENTS EXISTS CHAPTER 9 (mAPTER 10 FIRE PROTECTION SUBSTANDARD BUILDINGS CHAPTER 11 CHAPTER 12 ENERGY CONSERVATION REQUIREMENTS FOR PHYSICALLY HANDICAPPED PAGE 10 10 12 INTI~ODUCTION ~he 'property Rehabilitation Standards' (PRS) as denoted herein have been established after considering many codes and suggestions by the Federal Housing Administration. These PRS are the Uni£orm Housing Code, 1979 Edition, except for some n~Lnor revisions and additions, and shall be the guide for the County in implementing its Home Improvement Program. These PRS shall constitute the basis o£ the working agreement between the Department of Housing and Urban Development (HUD) and the County of Orange. They shall apply to all residential properties in areas desi~nated by the County as eligible for rehabilitation. Where the HUD Minimum Property Standards are more restrictive, those standards shall apply. It is recognized that the PRS are minimumproperty standards and not ideal property standards. Where actual rehabilitation occurs, replacements may be ~equired which go beyond the minimumstandards in orde~ that the CDBG £unds be utilized in a more e££ective manner and a longer kasting repair be made to structures.. For example, in areas where there is a generally recognized condition o£ expansive soils, larger £ootings may. be required by H/C'D. ~ditionally it is recognized that a £1exible interp~etation of the Uni£orm Building Code is utilized in the Home Improvement Program Since to require an existing older dwelling to con£orm 100% to the Unifor~ Building Code may be co~t l~ohibitive. Chapter 1 TITLE.' AND SCOPE Sec. 101. These P.=operty Rehabilitation Standards ace to be refecred to herein as PRS. PURPOSE Sec. 102. The purpose of these PRS is to provide minimum standards to safeguacd life, limb, health, property, safety, and welfare of the general public and the owners and occupants of residential buildings within Jurisdiction of the County of 'Orange and those cities whose rehabilitation programs ace administered by the County of Orange. SCOPE Sec. 103'. (a) Application..The provisions of these PRS shall apply to all buildings or portions thereof used, or designed, or intended to be used, for'human habitation. Such occupancies in existing buildings may be continued as provided in Section 104' (G) of 'the Building Code, except such structures as ace found to be substandard as defined in .these PRS. Where any building or portion thereof is used or intended to be used as a combination apartment house-hotel, the provisions of the PRS shall apply to the separate portions as if they were separate buildings. Every rooming house or lodging housing shall comply with all requirements of these PI~ for dwellings. (b) Alteration. Existing buildings which are altered or enlarged shall be made to conform to these PRS insofar as the new work is concerned and in accordance with Section 104 (a) and (b), o~ the Building Code. However, exceptions may be permitted provided health, safety, and general welfare of parsons concerned are not adversely affected. (c) Relocation. Buildings or structures moved into o~ within the jurisdiction shall comply with the requirements in the Relocated Buildings Code ~or new buildings and structures.' Chapter 2 ENFORCEMENT Sec. 201. (a) Authori~y. The Housing and Community Development Manager is hereby authorized and directed to administer and enforce all of the provisions of these PRS. o -1- (b) Right o£ Entry. Whenever necessary to make an inspection to enforce. any of the p~ovisions of these PRS, or whenever the Housing and Community Development Manager or his authorized rep~esentative has reasonable cause .to believe ~J~at there' exists in any building or upon any premises;' any condition which make such building or p~emises unsafe, dangerous, hazardous, or substandard as defined in Section 202 of these PRS, the Housing and Community DeVelopment Hanager or his authorized representative may enter such building or premises at aL1 reasonable times to inspect the same or to perform any duty imposed upon the Housing ami Community Manager by these PRSI provided that if such building or premises' ~ere occupied, he shall first present proper credentials and demand entry~ and if such building or premises be unoccupied, he shall first make a reasonable effort to locate the o~ner or other persons having' charge or control of the building or premises and demand entry. If such entry is refused, the Housing and Community Development Manager or .his authorized representative shall have recourse to every remedy provided by to secure entry. No o~ner or occupant or other person having charge, care or control of any building or premises shall fail or neglect, after proper demand is made as herein p~ovided, to promptly permit entry therein by the Housing and Co~eunitM Development Nanager or his authorized representative for the purpose of inspection and examination pursuant to these PRS. ~ny person violating this subsection shaLl be guilty, of a misdemeanor. (c) Re~ponsibilities Defined. Every Owne£ remains liable for violations of duties'imposed upon him bM these PRS even through an obligation is also imposed on the occupants of his building, and even though the o~ner has, bM agreenent, impc~ed on the occupant the duty of fu~nishing requi~ed equipment or of complMing with the~e PRS. ~ Ever¥o~ner, or his agent, in addition to being responsible £or maintaining his building in a sound structural condition, shall be responsible for keeping that pa~t of the building or premises which he occupies or -controls in a clean, sanitary, and safe condition including the shared or 'public areas in a building containing ~wo Or more dwell£ng un£ts. gveryo~ner shall, where required by ~hese PITS, the health ordinance or the health officer, furnish and maintain such approved devices, eq~ipment, or facil£ties for the prevention of insect and rodent infestation, and where infestation has taken place, shall be responsible for the extermination of any insects,*rodents, or other pests When such extermination is not specifically made the responsibility of the occupant by law or ruling. Every occupant of a dwelling unit, in additional to being responsible for keeping in a clean, sanitary, and safe condition that part of the dwelling or dwelling unit or premises Which he occupies and controls,~shall dispose of all his rubbish, garbage, and other organic waste in a manner required by other laws and regulations. Every occupant shall, where required by these PRS and by other laws and regulations, fttcnish and maintain approved devices, equipment or facilities necessary to keep his premises safe and sanitary. --2-- ' SUBSTANDARD BUILDINGS Sec.. 202. All buildings or portions thereof which are determined to be substandard as defined in these PRS are hereby declared to be public nuisances and shall be abated by repair, rehabilitation, demolition, or removal in accordance with procedure specified in Chapter 2, as amended (Ordinance 3062). Chapt:er 3 PERMITS AND INSPECTIOt~S GENERAL Sec. 301. No person, firm, or corporation shall erect, construct, enlarge, alter, repair, move, improve, remove, .convert, or demolish any building or structure, or cause or permit the same to be done, without first obtaining a separate building permit for each such building or structure from the Building Official in the manner and according to the applicable conditions prescribed in Chapter .3 of the Building Code and in Section 302 of Ordinance No. 3061:. '.. Sec. 302. Whenever a building permit .is required by Section 301 of these PRS, the appropriate fees shall be paid to' the Building Official as. specified in Section 304 of the Building Code and of Ordinance No. 3061. SeC. 303. All buildings or structures within the scope of these PRS and all construction or work for which a per. it is required shall be subject to inspection by the Housing and Com~unity Development Manager and the Building official in accordance with and in the manner provided by these PRS and Sections 305 and 306 of the Building Code. ; Chapter 4 DEFINITIONS Definitions Sec. 401. For the purpose of these PRS, certain abbreviations, te,rms, phrases, words, and their derivatives shall be construed as specified in the Building Code. BUILDING CODE shall mean the Uniform Building Code, published by the International Conference of Building OEficials and the Code currently adopted by the Board of Supervisors. EFFICIENCY LIVING UNIT. Efficiency living unit is a dwelling unit containing only one habitable room.and meeting the requirements of Section 503(b), Exception. HOT W~TER. Hot water shall be water at a temperature of not less than 100 degrees F. -3- MECH~I~~E shall mean the Uni£ocm Mechanical Code, published by the International Con£erence'o£ Building Of£icials and the International &ssociation o£ Plumbing and Mechanical Officials and the Code currently adopt_ed by the Board of' Supervisors, County of Orange. .. NUISANCE. The following shall be defied as nuisances: 1. Any public nuisance known at co~on law or in equity Jurisprudence. 2. ~ny attractive nuisance which may prove detrimental to children whether in a building, on the premises of a building, or upon an unoccupied lot. This includes any abandoned wells, shafts, basements, or excavations; abandoned refrigerators and motor vehicles; or any structurally unsound fences or structuces; or any lu~ber, trash, fences, debris, or vegetationwhich maMp~ove a hazard for inquisitive minors. 3. Whatever is dangerous ~o human life or is detrimental to heal'th, as determined bM the Rousing and CoenunitMl)evelolment Manager. 4. Overcrowding a room with occupants. 5. Insufficient ventllatica or illumination. 6. Inadequate o; unsani~arM sewage or plumbing facilities. 7. Uncleanliness, as determined by the Rousing and Co~munitM Development Manager. 8. Whatever renders air, food, ok drink unwholesome or detrimental to the health of human beings as determined by the Rous. ing and Community Development Manager. Chapter 6 SPACE AND OCCUPANCY STANDARDS LOCATION ON PROPERTY Sec. 501. Ail ~uildings shall-be located with respect to property lines and to other buildings on the sa~e property as required by Section 504 and' Part IV of the Building Code. Each dwelling unit and each guest room in a dwelling or lodging house shall have access to a passageway, not less than 3 feet in width, leading to a public street or alley. Exist courts from · apartment houses to the public way shall be not less than 44 inches in width and 7 feet in height. -4- Sec. 502. (a) Scope. This Section shall..apply to yards and courts having require~'win~ow~ opening therein. . . : (b) Yards. Every yard shall be not less than 3 feet in width for one- sto~y and two-sto~y buildings. For buildings more than two stories in height the minimum width of the yard shall be increased at .the rate' of 1 foot for each additional story. Where yards completely surround' the building, the required width may be reduced by 1 foot. For buildings 'exceeding 14 stories in height, the required width of yard shall be computed on the basis of 14 stories. (c) Courts. Every court shall be not less than 3 feet in width. Courts having windows opening on the opposite sides, shall be not less than 6 feet in width. Courts bounded on three or more sides by the walls of the building shall be not less than 10 feet in length unless bounded on one end by a street o= yard. For buildings more than two stories in height the court shall be increased 1 foot in width and 2 feet in length fo= each additionally story. For buildings exceeding 14 stories in height, the required dimensions shall be computed on the basis of 14 stories. Adequate access shall be provided to the bottom of all courts £or cleaning purposes. Every Cou~t more than two stories in height shall be provided with. a horizontal air intake at the bottom not less than 10 square feet in area and leading to the exterior of the building unless abutting a ~ard or public space. The construction of the air intake shall be-as required for the cou~t walls of the building, but in no case shall be less than one- 'hou~ fire-resistive. ' · (d) Projection into Yards. Eaves and cornices may project into any required yar~ not more than 2 inches for each f,oot of yard width. Unroofed landings, porches and stairs may project in any required yard provided no portion extends above the floor level of a, habitable room~ and provided further that no such projection shall obstruct a required exit way. ROOM DIMENSION Sec. 503. (a) Ceiling Heights. Habitable rooms or areas shall have a ceiling height of not less than 7 feet 6 inches except as otherwise permitted in this Section. Kitchens, halls, bathrooms, and toilet compartments may have' a ceiling height of not less than 7 feet measured to the lowest projection from the ceiling. Where exposed beam ceiling members are spaced at less than 48 inches on center, the ceiling height shall be measured to the bottom of these members. Where exposed ceiling members ace spaced at 48 inches or more on center, ceiling height shall be measured to the bottom of the deck supported by these members provided that the bottom of the members is not-less than 7 feet above the floor. If any room in a building has a. sloping ceiling, the prescribed ceiling height £or the room is required in only one-half the area thereof. No portion of the room measuring less than. 5 feet from the finished floor to the finished ceiling shall be included in any computation of the minimum area thereof. -5- 0. 1£ any roo~ has a £urred ceiling, the prescribed ceiling height is required in two-thirds the area the~eo£, but in no case shall the height o£ the £urred ceiling be less than 7 £eet. · (b) Floor A~ea. 'Every dwelling unit shall have at least one room which shall have not less than 150 square £eet o£ floor area. Other habitable rooms except kitchens shall have an area of not less than 70 square feet. Where n~mre than two persons occupy a room used for sleeping purposes the required floor area shall be increased at the rate of $0 square feet for each occupant in excess of two.. ~dditional sleeping rooms may be provided to obtain proper separation child=eh or other dependents regarding sex. · EXCEP. TION: Nothing in this Section shall prohibit the use of an efficiency living unit within an apactment house meeting the following require~ents: 1. The unit shall have a living room of not less than · 200 square feet of superficial floor area. No additional 100 square feet of superficial floor area shall be provided for each occupant of such unit in excess of two. '-- 2.' The unit shall be provided with a separate close.t. 3. The unit shall be provided with a kitchen sink, cooking appliance and refrigeration facilities each having a clea~ working space of not less t~an 30 inches in front. Light and ventilation conforming to these PRS shall be provided. 4. The unit shall be'~rovided with a separate bathroom containing water closet, lavatory, and bathtub or shower. ~ (c) Width. No habitable room other than a kitchen shall be less than 7 feet in any dimension. Each water closet stool shall be located in a clear space not less than 30 inches in width and a clear space in front of the water closet, stool of not less than 24 inches shall be provided. Additional bathroom facilities may be provided in order to alleviate an overcrowded condition. LIGHT ANDVENTI~TION Sec. 504. (a) Natural Light and Ventilation. Ail guest rooms, dormitories, and habitable rooms within a dwelling unit shall be provided with natural light by means of exterior glazed openings with an area not less than one-tenth of the floor area of such rocks with a minimum of 10 Square feet.. Ail bathrooms, water closet compartment, laundry rooms and similar rooms shall be p~ovided with natural ventilation by means of' openable exterior openings with an ar~a not less than one-twentieth of the floor area of such rooms with a minimum of I 1/2 squ. are feet, ~/1 guest rotes, dormitories and habitable ~oaas' within a dwelling unit shall be provided with natural ventilation by means of openable exterio~ openings with an area of not less than one-twentieth Of the floor area of such rooms with a minimum of $ square feet. (b) O~igin of Light and Ventilation. Required exterio'= openings 'for natu=al light and ventilation shall open directly onto a street or public alley o$ a yard or cou~t located on the same lot as the building. EXCEPTION.* Required wind.ows may open into a roofed porch whe=e 'the porch.* 1. Abuts a street, yard, o= couzt~ and 2. Has a ceiling height of not less than 7 feet; and 3. Has the longer side of'at least 65 percent open and unobstructed. o A cequi=ed windov in a service roo~may open into a vent shaft which is open and unobstructed to the sky and not less than 4 feet in least dimension. No vent shaft shall ex~end through ~ore than t~o stories. . For the purpose of determining light and ventilation requirements, any room.may be considered as a portion of an adjoining ro~e when one-half of the area of the ccaunon wall is open and unobstructed and provides an opening of not .less than one-tenth of the floor area of the interior room or 25 square feet, whichever is greater. (c) Mechanical Ventilation. In lieu of required exterior openings'for natural ventilation, a mechanical ventilation system may be provided. Such system shall be capable of providing two air changes per hour in all guest rooms, dormitories, habitable rocxes, and in public corridors. One-fifth of the air supply shall be taken from the outside. In bathrooms, *stet closet compartments, laundcy rooms, and similar rooms a mechanical ventilation sy~'tem connected directly to the outside, capable of providfng five air changes per hour, shall be provided. (d) Hallways. Ail public hallways, stairs, and other exit ways shall be adequately lighted at all times in accordance with Section 3312(a} of the Building Code. SANITATION Sec. 505. (a) Dwelling Units. Every dwelling unit shall be provided with · a bathroom equipped with facilities consisting of a water closet, a lavatory, and either a bathtub or shower. -7- (b) Rotels-. Where 'private water closets, lavatories, and baths are not provided, there shall, be provided on each floor 'for each sex at least one water closet and lavatory and one bath-accessible ~rom a public hallway. Additional water closets, lavatories, and. baths shall be provided on each £1oor ~or each sex at the rate o~ one ~or every additional guests, o= £ractional number thereof in excess of 10. Such £acilities shall, be clearly ruer keri for "Men" and "Women". · (c) Kitchen. Each dwel~ing, unit shall be provided with a kitchen. Every kitchen shall be provided with a kitchen sink. No wooden sink or sink or similarly absorbent material shall be permitted. (d) Fixtures. &ll plumbing fixtures shall be connected to a sanitary sewer or to an approved private sewage disposal system. All plumbing fixtures shall be connected to an approved system of .water supply and provided with hot and cold running water necessary for its manual operation, except water closets shall be provided with cold water only. All plumbing fixtures shall be of an approved glazed earthenwace type of a s~milarly nonabsorbent material. (e) Water Closet Compartments. Walls and flcors of water closet .compartments except in dwellings shall be finished in accordance with Section 1711 o£ the Building Code.. : , In all occupancies, accessories such as grab bars, towel bars, paper dispensers and soap dishes, etc;, ~ovided on or within walls shall be installed and sealed to protect structural elements ~ro~ moisture. (f) Room Separations. Every water closet, bathtub, or shower required by these PRS shall be installed in a room which will ~fford privacy to the occupant. A room in which a water closet is 19cated shall be separated from. food preparation or storage rooms by a tight-fitting door. (g) Installatkon and Maintenance. Ali sanitary facilities'shall be installed and maintained in safe and sanitary condition and in accordance with' all applicable laws. Chapter STrUCTUrAL REQUIREMENTS Section. 601. (a) General. Buildings or structures may be of any type of 'construction permitted by ~he Building Code. Roofs, floor.~, walls, foundations, and all other structural components o~ buildings shall be capable of resisting any and all forces and loads to which they may be subjected. All structural elements shall be proportioned and joined in accordance with the st=ess limitations and design criteria as specified in the appropriate sections of the BUilding Code. Buildings of every permitted type 'of construction shall comply with the applicable requirements of the Building Code o (b) Shelter. Every building shall be weather protected so as to provide shelter £o= '.he occupants' against the elements and to exclude dampness. (c) Protection of Materia~s. All wood shall be protected against 'termite -damage and decay as provided in the Building Code. Chapter ? Sec. 701. (a) Heating. Every dwelling unit and guest room shall be provided with heating facilities capable of maintaining a room temperature of 70 degrees F. at a point 3 feet ab6ve the floor in all habitable rooms. Such facilities shall be installed and maintained in a safe condition and in accordance with Chapter 37 of the Building Code, the Mechanical Code, and all other applicable laws. No unvented fuel-burning heater shall be permitted. All heating devices or appliances shall be of an approved type. (b) Electrical Equipment. A~l'electrica~ equipment, wiring, and appliances shall be installed and maintained in a safe manner in accordance with all applicable laws. A~l elec~rical equipment shall be of an a. pproved t~pe. · ~here there is electrical power available within 300 feet of the premises of any building, such building sha]~ be connected to such electrical power. Every habitable room shall contain.at least two supplied electric convenience o~tlets or one such convenience outlet and one supplied electric light fixture. Every water closet compartment, bathroom, laundry room, furnace room, and public hallway sha~l contain at least one supplied electric light £ixture. (c) Ventilation. Ventilation for rooms .and a~eas and for fuel-burning appliances shall be provided as required i'n the Mechanical Code and in this Code. Where mechanical ventilation is provided in lieu of the natural ventilation required by Section 504 of .~his Code, such mechanical ventilating system shall be maintained in operation during ~he occupanc~ of any building or portion thereof. Chapter 8 EXITS Sec. 801. Every dwelling unit or guest room shall have access directly to the outside or to a public corridor. Ail buildings or portion3 thereof shall be provided with exits, exit ways, and appurtenances as'required by Chapter 33 of the Building Code. Every sleeping room below the fourth story shall' 'have at least one operable window or exterior door .approved fo= emsrgency egress or rescue. units shall be operable from the inside to provide a full clear opening without the use of separate tools. --9-- ' · All egress or rescue windows from sleeping r~x~ns shall have a minLmum net c~ear opening of 5.7 square feet. ~he minimum net clear opening height dimension shall be 24 inches. ~he minimum net clear opening width dimension sh&tl be 20 inches, ghere .windows are provided as a means of egresk or rescue they shall have a finished sill height not nora than 44 inches above the £1cer. Chapter 9 FZ~ Sec. 901. All buildings or Portions thereof shall be provided with the degree of fi=e-resistive construction as required by the Building Code, for the appropriate occupancy, type of construction, and location on property or in £ire zonez and shall be provided with the appropriate £ire-extinguishing systems or equilnent, requ.ired by Chapter 38 of the Building Code. Chqpter 10 DEFINZTZON SUbSTANDArD BUZLDINGS Sec. 1001. (a) ~eneral. Any building or.portion thereof including any dwelling unit, .guest room or suite o£ rooms, or the l~emises on which the same is located, in which there exists any of the following listed conditions to an 'extent that endangers the life, limb, health, lzcoperty, safety, or welfare of the public or the occupants thereof shall be deemed and hereby is declared to be a substandard building. (b) Inadequate Sanitation. Inadequate sanitation shall include but not be limited to t~e following: , 1. Lack of or improper water closet, lavatory, bathtub or shower in a dwelling unit. 2. Lack of or improper water closets, lavatories, and' bathtubs or showers per number of guests in .a hotel. 3. Lack of or improper kitchen sink. 4. Lack-of hot and cold running water to plumbing' fixtures in a hotel. 5. Lack of hot and cold running water to plumbing ~ixtu~es in a dwelling unit. 6. Lack of adequate heating facilities. · 7. Lack of or improper operation of required ventilating equipment. 8. Lack of mininum amount of natu£al ligh~ and ventilation required by these PitS.. 9.. Room and ;space dimensions less than required by these PaS. 10. Lack of =equi=ed elect=ica1 lighting. 1~. Dampness of habitable 12- Infestation of insects, vermin ot rodents as determined by the Rousing and Community Development Manage=. 13. General dilapidation or improper maintenance. 14. Lack of connection to required sewage disposal system. 15. Lack of adequate garbage and rubbish storage and remova~ facilities as aete~uined by the Rousing and Community Development Manage=. (c) Structural Hazards. Structural hazards shall include but not be .limited to the following: 1. Deterio~ated o= inadequate foundations. 2. Defectiv~ or deteriorated floozing or floor supports .. 3. Flooring or floor support of insufficient size to cat=y imposed loads and safety. 4. Members of walls, partitions, or o~he= vertical supports that split, lean, list or buckle due to defective material or deterioration. 5. Members of walls, partitions, or other vertical supports that are of insufficient size to carry inposed loads with safety. 6. Members of ceilings, roofs, ceiling and roof supports, or other horizontal which sag, split, or buckle due to defective material or deterioration. 7. Members ~f ceilings, roofs, ceiling and roof supports, or their horizontal members that are of insufficient size to carry imposed loads with safety. 8. 'Fireplaces ot chimneys which list; bulge, or settle, due to defective material or deterioration. o. 9. Fireplaces or chimneys which are of insufficient size or strength to carry imposed loads with 8a£ety. 10. Dangerous or deteriorating ~ences. .* .. (d) Nuisance. Any nuisance as defined in these PRS. (e) Hazardous Wiring. All wiring except that which, conformed with all applicable la~s in e.~£ect to the time .of installation and which has been maintained in good condition and is being used in a safe manner. (f) Hazardous Plumbing. All plumbing except that which conformed with all applicable laws in affect at the time of installation and which has been maintained in'good condition and which is free Of cross connections and siphonage between fixtures. (g) Hazardous Mechanical ~quipsent. All mechanical equipaent, including vents, except that which conformed with all applicable lmes in effect at the timer of installation and which has been maintained in good and safe condition. (h) Faulty Weather Protection, which shall include but not be limited to the £ollowing~ lo Deteriorated, cr~hling, or loose plaster. o o Deteriorated or ineffective water p~oofing of exterior walls, roof, foundations, or ~floors,. in~luding broken windows or doors. Defective or lack of weather protection for exterior wall coverings, including lack of pant, or weathering due to lack of paint or other approved protective covering. Broken, rotted, split, or buckled exterior wall coverings or roof coverings. ' (i) Fire Hazard. Any building or portion thereof, device, apparatus, equip~ent, combustible waste, or vegetation which, in the opinion of the Orange County Fire Warden or his deputy, is in such a condition as to cause a fire or explosion or provide a ready fuel to augment the spread and intensity of fire explosion arising from any cause. (j) Faulty Materials of Construction. Ail materials of construction except those which are specif$cally allowed or approved by these PItS and the Building Code, and which have been adequately maintained in good and safe condition. (k) Hazardous or Unsanitary Premises. Those premises on which an accumulation of weeds, vegetation, junk, dead organic matter, debris, garbage, offal, rat harborages,.stagnant water, combustible materials, and .similar materials or conditions constitute fire, health or safety hazards. -12- (!) Inadequate Exits. A~l buildings or portions thereo£ not provided with adequate exit £acilittes as required by' these PItS except those buildings or portions thereo£ whose exit £acilities con£o~med with all applicable laws at the time 0£ their construction and which have been adequately maintained and increased in relation to any increase in occupant load, alteration or addition, or any change in occupancy. When an unsa£e condition exists through lack o£ or improper location o£ exits, additiona~ exits may be required to be installed. (n) Inadequate Fire-protection or Fire-£ighting Equipment. All buildings or portions thereo£ which &ce not provided .with the fire-resistive construction of £ire-extinguishing systems or equipment required by thes~ PITS, except those buildings or portions thereof which conformed with all applicable laws at the time of their construction and whose fire-resistive integrity and fire-extinguishing slmte~s or equipment have been adequately maintained and improved in relation to any increase on occupant load, alteration or addition, or any change in occupancy. (o) I~proper Occupancy. All buildings or portions thereof occupied for living, sleeping, cooking or dining purposes ~hich ace not designed or intended to be used £or such occupancies. · o Chapter 11 ENER~ CONSERVATION Sec. ll01. (a) Energy Efficiency Performance Requirement. ApproPriate energy-conserving improven~nts such as insulation, caulking, and weather- proofing must'be accomplished by the owner as pact of the rehabilitation under this pact, provided that these imp~ovemen~s ace determined to be cost effective over a period of L5 years. (b) Energy Conservation requirements in New Building Construction shall comply with Chapter 53, Appendix of the U.B.C. Chapter 12 ItEQUIREMENT~ FOR PHYSICALLY HANDICAPPED' GENERAL Sec. 1201. (a) Units accommodating physically handicapped occupants with wheelchairs and other special equipment shall not contain architectural barriers which impede access or use. Handrails and.ramps shall be provided as appropriate.