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
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PROPOSED CONTRACT WI'Ill COUNTY OF ORANGE FOR PROVISION OF
REHABILITATION OF PRIVATE PROPERTIES - 14TH YEAR HOUSING AND
COPIIIJNITY DEVELOPNENT PROGRAH
RECOPI~ENDATION
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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
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TITLE OF PROJECT: Tustin - Rehabilitation of Private Properties (N15.1)
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MEMO~ OF CONTRACT entered into this
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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,
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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
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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
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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
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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
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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
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· 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.
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Cont=act No. C40753
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· xN wI~a~ss WHKRROF, crt~ has caused this Cent=act to be executed by Its MaFo=
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and attested by its C~e=k; COONTY has caused ~his Coat=aCt 'to.be execu, ted by .the
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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£
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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
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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
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CITY will provide such copies o£ 24 CFR Pact 135, as may be necessary for the.
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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
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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
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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
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In ca~ryinq out the p~oqram, the CITY s .ali not discriminate aqainst any .
~ ~it "~," to ~/¢X'I'Y Contract
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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
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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
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: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~ $2~000.00 (~ ~ous~ ~ars and no/~00) ~oc ~he
16 ~ns~cuc~ion~ pcos~u~ion~ ~~e~ion oc ce~ic o~ any building oc ~ck ~inan~d
1~ who~e oc in p~ wi~h assis~a~e Pcovid~ undec ~his ~n~ac~, sha~ ~~y wi~h
18 ce~i~emen~s ~c~aining ~o such ~n~cac~s nd ~e app~i~b~e ce~i~emen~s o~ ~e
19 ceg~a~ions o~ ~e Dep~en~ o~ L~c '~dec 29 ~ Pac~s 3 (Co~and Ac~)~ 5~ ~d 5a
20 (Oavis-Ba~n ~)~ go,thing ~e ~en~ o~ wages nd ~e ca~io o~ appcen~ices and
21 ~rainees ~o ~oucne~an= ~ovid~ ~ha~ i~ wage ca~es highec ~han ~ose ce~iced ~der'
22 such ceg~a~ions .a~e i~sed by s~a~e of ~a~ ~aw~ ~h~ng hece~ec is in~ended ~o
23 relieve ~he C]~ of ~s ob~iga~ion~ i~ any~ ~ ce~ice pa~en~ o~ ~he highec ca~es. The
~4 CI~ sha~ cause oc ce~ice ~ ~ insetted in f~ in ~ such ~n~rac~s sub~ ~o
such ceg~a~ion~ pcovisions mee~ing ~e ce~icemen~s o~ 29 C~ 5.5 and ~oc such
26 ! ~n~cac~s in ex, ss o~ SL0~000~ 29 C~ 5. ~e "F~eca~ ~c S~andacds Pcovisions"
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[~ (~D 40~0) ~e m~e p~ o~ ~his ~n~cac~.
No award of ~e ~ntracts ~ve=ed ~der this section of ~he ~n~rac~ shall '
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1 the regulations, issued pursuant thereto (24 CFR Pact 570.602), which provides that no
2 person in the Unitid States shall on the grounds o£ race, color, national origin, or
.. sex, be excluded fro~ pacticipation in, be denied the .benefits of, or be subjected to
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4 :; discrimination under, an~-program or activity funded in whole or in part with funds
5 .. provided under this Pact.
6 !1 4. Executive Order 11063 on equal opportunity in housing and
?!! nondiscri~Lnatio~ in the sale or rental of housing built with Federal assistance.
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$ (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
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. b. Znform affected persons of their rights and of the acquisition
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, policies and procedures set forth in the regulations in 24 CFR Pa~t 42 and 570,606
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it "A" to ~/CI~ Contract
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. 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-
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iJ ment J3) -
t! The cI~/ sha~l comply with the provisions of ~xecutive O~de~ 11296, relating
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26 if, to evaluation of ~ hazards and ~ut~ve O~der ~L288 ~e~at~ng to ~e prevention,
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':. cont~o~ and abatement o~ wa~e~ po~ution. (~u~ce: Ti~e 24 C~ 570.605 ~ev~sed
April 1,. 1984) -
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].'.Violating Pacilities.
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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
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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~
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· . 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.
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28' JM: bjgAWP2-5 . -13-
06116/86
757.02
EXHIBIT B~
Con,:race No. C60753
754.01
55.0
744
744.03
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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
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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).
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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.
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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.
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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
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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.