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HomeMy WebLinkAboutConsent Cal. #4 5-18-87,, ,... 'gNSENT CALENDAR TO: FROM: S U BJ ECT: WILLIAM A. HUSTON, CITY MANAGER · COMMUNITY DEVELOPI4ENT DEPARTMENT PROPOSED CONTRACT WITH COUNTY OF ORANGE FOR REHABILITATION OF PRIVATE PROPERTIES - 12TH YEAR HOUSING AND COMMUNITY DEVELOPMENT PROGRAM y~ ii · RECOMMENDATION: It is recommended that the City Council approve the attached contract as submitted. BACKGROUND: Enclosed is a proposed contract between the County of Orange and the City which would ~--implement the Rehabilitation of Private Properties portion of the City's 12th year )using and Community Development {HCD) Block Grant application. The City Council at ~heir regular meeting of November 18, 1985 approved the City's 12th year HCD application which provided for funds to be used for housing rehabilitation. The County Board of Supervisor's subsequently approved the City's application on May 21, 1986 and allocated $85,000 for housing rehabilitation. The $85,000 will be used to rehabilitate .owner occupied dwellings, apartments and mobile homes in the City's target areas (see attached map in contract). The County's Home Improvement Program provides low interest loans, deferred payment loans and grants {when necessary) to assist qualified low income home owners, tenants and landlords to provide home improvements. Because of the vast administrative services needed to execute a rehabilitaion program, the City has contracted with the County to provide these services since 1982. Since that time, the City has processed over $300,000 worth of loans and grants which have directly benefited property owners in Tustin. A complete listing of these projects is available from the CommunitY Development Department. According to the attached correspondence, the City Attorney has reviewed the contract and finds it acceptable. hristine hing eton /x/x i Director of Community ~Development MAC:per Ctachment: Contract TO: FROM: SUBJECT: MARY ANN CHAMBERLAIN, ASSISTANT PLANNER CITY ATTORNEY AGREEMENT BETWEEN CITY OF TUSTIN AND COUNTY OF ORANGE ENVIRONMENTAL MANAGEMENT AGENCY HOUSING AND COMMUNITY DEVELOPMENT CONTRACT We have the Housing and Community Development contract for the rehabilitation of private properties proposed between the County of Orange Environmental Management Agency and the City of Tustin, and would approve said Agreement as to form, subject to any other comments of your office. If you have any questions in regard to this matter, please ..... do not hesitate to contact the undersigned. CITY ATTORNEY ~KINS DEPUTY CITY ATTORNEY SDA :cj :D:0 4/2 4/87 (C12) cc: ,~-~ 1 2 3 4 5 6 7 8 9 10 11 Contract No. C40385 COUNTY OF ORANGE ENVIRONMENTAL MANAGEMENT AGENCY HOUSING AND COMMUNITY DEVELOPMENT CONTRACT TITLE OF PROJECT: Tustin - Rehabilitation of Private Properties (L15.1) MEMORANDUM OF CONTRACT entered into this day of , 19 . BY AND BETWEEN CITY OF TUSTIN, a municipal corporation, hereinafter referred to as CITY. and COUNTY OF ORANGE, a political subdivision of the State of California and recognized Urban County under the Federal Housing and Community Development Act of 1974 Public Law 93-383), as amended, hereinafter referred to as COUNTY. WHEREAS, COUNTY and CITY previously entered into a Cooperation Agreement, dated October 9, 1984 in which both parties agreed to cooperate in the undertaking, or ~ assist in the undertaking, of community development and housing assistance activities, 14 and 15 WHEREAS, the CITY has submitted to the COUNTY an application for funding of 16 a project hereinafter described, and 17 WHEREAS, the COUNTY has entered into separate agreements dated August 12, 1986, 18 and November 4, 1986, with the U.S. Department of Housing and Urban Development 19 (hereinafter designated as HUD) to fund said project under the Housing and Community 20 Development Act of 1974 (Public Law 93-383), as amended (hereinafter referred to as 21 ACT). 22 WHEREAS, the COUNTY has established a Home Improvement Program and has 23 entered into individual agreements to administer said program with HUD, California 24 State Department of Housing and Community Development and a local lending institution(s), and 26 27 28 WHEREAS, the CITY has requested COUNTY to implement the CITY's Housing and Community Development Project entitled Housing Rehabilitation and funded from Block Grant funds (L15.1) for ($85,000.00). --1-- Contract No. C40385 1 2 3 4 5 6 7 8 9 10 11 12- NOW, THEREFORE, IT IS MUTUALLY AGREED by and between the parties that the following provisions listed as well as all applicable Federal, State and County laws and regulations including the attached SPECIAL PROVISIONS, identified as Exhibit "A", and Exhibits "B" and "C", are part of this Contract. 1. The COUNTY will administer CITY Community Development Block Grant Rehabilitation funds to implement the Housing Rehabilitation Project described herein as project, which will provide low-interest loans, deferred payment loans, grants or rebates for home improvement of privately owned properties in the CITY's target area and spot housing rehabilitation within the CITY's boundaries (see attached map Exhibit "B"), in accordance with the COUNTY's Home Improvement Program (see Exhibit "C" of this Contract) as approved and amended from time to time by the Board of Supervisors. All rehabilitation of single family residential units will benefit low- and moderate-income families and rehabilitation of multi-family residential units will principally benefit 14 15 16 17 18 19 20 21 22 23 24 26 27 28 (minimally 51%) low- and moderate-income families. 2. The total project funds available for loans, grants and rebates and administrative costs hereinafter provided for in Section 5 of this Contract will not exceed Eighty-five Thousand Dollars and no/100 ($85,000.00). 3. The CITY agrees to advertise the program and to provide outreach efforts to prospective clients on an ongoing basis to promote loans, grants and rebates from available project funds. It is agreed by all parties that the project shall be completed and all funds provided through this Contract shall be expended on eligible project activities prior to December 31, 1987. The date for project completion and expenditure of all funds may be extended by the Director of the Orange County Environmental Management Agency or his designee through written notification to the ~ITY. 4. The CITY agrees to provide appropriate office space to the COUNTY, as needed for the project, including use of a desk and a telephone. 5. The CITY agrees to pay up to 20% administrative charges from project funds --2-- Contract No. C40385 1 2 3 4 5 6 7 8 9 10 11 identified in Section 2 of this Contract. When the project is completed, any remaining unexpended administrative funds, not to exceed 20% of the total project funding amount, will be allocated to the Countywide Rehabilitation Administration account. 6. Whenever available and feasible, funds may also be used to administer the CITY's HUD 312 Program. Other funding sources once approved by the Board of Supervisors for 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 to 24 CFR 570.506(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. Neither COUNTY nor any officer nor employee thereof shall be responsible for any damage or liability occurring by reason of any action or omission of CITY or its agents, associates, contractors, subcontractors, materialmen, laborers, or any 14 15 16 17 18 19 20 21 22 23 24 26 27 28 other persons, firms, or corporations furnishing or supplying work service, materials, 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, CITY shall fully indemnify, defend and hold COUNTY harmless from any liability imposed for injury (as defined by California Government Code Section 810.8) occurring by reason of any action or omission of CITY under or in connection with any work, authority or jurisdiction delegated to CITY under this Contract. CITY shall act in an independent capacity and not as officers, employees or agents of COUNTY. 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 --3-- Contract No. C40385 1 2 3 4 5 6 7 8 9 10 11 14 15 16 17 18 19 2O 21 22 23 24 26 27 28 other persons, firms, or corporations furnishing or supplying work, service, materials, or supplies in connection with COUNTY'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 COUNTY's performance of this Contract, under or in connection with any work, authority or jurisdiction delegated to COUNTY under this Contract. It is also understood and agreed that, pursuant to California Government Code Section 895.4, COUNTY shall fully indemnify, defend and hold CITY harmless from any liability imposed for injury (as defined by California Government Code Section 810.8), occurring by reason of any action or omission of COUNTY under or in connection with any work, authority or jurisdiction delegated to COUNTY under this Contract. COUNTY shall act in an independent capacity and not as officers, employees or agents of CITY. 10. In the event of CITY's failure to comply with the provisions of this Contract, COUNTY may withhold funds and/or terminate this Contract and allocate funds previously assigned to this Contract to another eligible project(s) within the Urban County. /// /// /// /// /// /// /// /// /// /// /// /// -4- Contract No. C40385 1 2 3 4 5 6 7 8 9 10 11 lV.- 14 15 16 17 18 19 20 21 22 23 24 IN WITNESS WHEREOF, CITY has caused this Contract to be executed by its Mayor and attested by its Clerk; COUNTY has caused this Contract to be executed by the Chairman of the Board of Supervisors and certified by Clerk of the Board, all having been duly authorized by the City Council of CITY and the Orange County Board of Supervisors. CITY OF TUSTIN Dated: By Mayor City Clerk COUNTY OF ORANGE, a political subdivision of the State of California Dated: By Chairman of the Board of Supervisors COUNTY ~IGNED AND CERTIFIED THAT A COPY OF THIS DOCUMENT HAS BEEN DELIVERED TO THE CHAIRMAN OF THE BOARD. LINDA D. ROBERTS Clerk of the Board of Supervisors of Orange County, California APPROVED AS TO FORM: ADRIAN KUYPER, COUNTY COUNSEL ORANGE COUNTY, CALIFORNIA 27 IIJM: bj gWP14-1.2 ~8 1101/16/87 -5- C0NTk f NO. C40385 1 2 3 4 5 6 7 8 9 10 11 13 14 15 16 17 18 19 2O 21 22 23 24 27 28 Exhibit "A" to COUNTY/CITY Contract SPECIAL PROVISIONS A. Section 3 - Compliance with the Provision of Training ~mployment and Business Oggortunity The CITY shall cause or require to be inserted in full in all contracts and subcontracts for work financed in whole or part with federal financial assistance provided under this Contract, the Section 3 clause set forth in 24 CFR 135.20(b). The CITY will provide such copies of 24 CFR Part 135, as may be necessary for the information of parties to contracts required to contain the said Section 3 clause. Section 3 requires that to the greatest extent feasible, opportunities for training and employment be made available to lower income residents within the unit of local government or metropolitan area (or non-metropolitan county), in which the project is located. In addition, to the greatest extent feasible, contracts for work in connection with the projec% shall be awarded to business concerns which are located in, or in substantial part owned by, persons residing in the same unit of local government or metropolitan area (or non-metropolitan county), in which the project is located. The parties to this contract will comply with the provisions of said Section 3, and the regulations issued pursuant thereto by the Secretary of Housing 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 action pursuant to the subcontract upon a finding that the subcontractor is in violation of regulations issued by the Secretary of Housing and Urban Development, 24 CFR 135. The CONTRACTOR will not subcontract with any subcontractor where it has notice or knowledge that the latter has been found in violation of regulations under 24 CFR 135. The parties to this contract certify and agree that they are under no contractual or other disability which would prevent them from complying with these requirements. (Source: Title 24 CFR 135 revised April 1, 1984.) Page 1 of 13 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 B. Equal Employment Opportunity In carrying out the program, the CITY shall not discriminate against any employee or applicant for employment because of race, color, religion, sex or national origin. The CITY shall take affirmative action to ensure that applicants for employment are employed and that employees are treated during employment, without regard, to their race, color, religion, sex or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer; recruitment advertising; layoff or termination; rates of pay or other form, compensation; and selection for training, including apprenticeship. The CITY shall post in conspicuous places, available to employees and applicants for employment, notices to be provided by the COUNTY setting forth the provisions of this nondiscrimination clause. The CITY shall, in all solicitations or advertisements for employees placed by or on behalf of the CITY, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex or national origin. The CITY shall incorporate the foregoing requirements of this paragraph in all of its contracts for program work and will require all of its contractors for such work to incorporate such requirements in all subcontracts for program work. Such contracts shall be subject to HUD Equal Employment Opportunity regulation 24 CFR Part 130 as applicable to HUD assisted construction contracts. The CITY shall cause or require to be inserted in full in any non-exempt contract and subcontract for construction work or modification thereof, as defined in said regulations which is paid for in whole or in part with assistance under the Contract, the following equal opportunity clause: "During the performance of this contract, the contractor agrees as follows: 1. The contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex or national origin. Page 2 of 13 1 2 3 4 5 6 7 8 9 10 11 · 13 14 15 16 17 18 19 2O 21 22 23 24 27 The contractor will take affirmative action to ensur~ that applicants a~e employed and that employees are treated during employment, without regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to, the following: Employment, upgrading, demotion or transfer, recruitment advertising, layoff or termination~ rates of pay or other forms of compensation and seleCtion for training, including apprenticeship._ The contractqr agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the CITY setting forth the provisions of this nondiscrimination clause. 2. The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex or national origin. . 3. The contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice advising the said labor union or worker's representatives of the contractor's commitment under Section 202 of Executive Order 11246 of September 24, 1965, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. 4. The contractor will comply with all provisions of Executive Order 11246 of September 24, 1965 and of the rules, regulations and relevant orders of the Secretary of Labor. 5. The contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965 and by the rules, regulations and order of the Secretary of Labor or pursuant thereto and will permit access to his books, records and accounts by the Department and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations and orders. 6. In the event of the contractor's noncompliance with the Page 3 of 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 nondiscrimination clauses of this contract or with any of such rules, regulations or orders, this contract may be canceled, terminated or suspended in whole or in part and the contractor may be declared ineligible for further Government contracts or federally assisted construction contract in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, or by rules, regulations or order of the Secretary of Labor or as otherwise provided by law. - 7. The contractor will include the portion of the sentence immediately preceding paragraph (1) beginning with the words 'During the performance of..." and the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations or orders of the Secretary of Labor issued pursuant to Section 204 of the Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The contractc will take such action with respect to any subcontract.or purchase order as the Department may direct as a means of enforcing such provisions, including sanctions for noncompliance; provided, however, that in the event a contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the Department the contractor may request the United States to enter into such litigation to protect the interest of the United States. The CITY further agrees that it will be bound by the above equal opportunity clause with respect to its own employment practices when it participates in federally assisted construction work. The above equal opportunity clause is not applicable to any agency, instrumentality or subdivision of such CITY which does not participate in work on or under the contract. The CITY agrees that it will. assist and cooperate actively with COUNTY, HUD and the Secretary of Labor in obtaining the compliance of contractors and subcontractors with the equal opportunity clause and the .rules, regulations and relevant orders of the Secretary of Labor; that it will furnish the COUNTY, HUD and the Secretary of Labor such information as they may require for the supervisions of Page 4 of 13 1 2 3 4 5 6 7 8 9 10 11 13 14 15 16 17 18 19 2O 21 22 23 24 27 such compliance~ and that it will otherwise assist the abo~e parties in the discharge of its primary responsibility for securing compliance. The CITY further agrees that it will refrain from entering into any contract or contract modification subject to Executive Order 11246 of September 24, 1965, with a contractor debarred from or who has not demonstrated eligibility for, Government contracts and federally assisted construction contracts pursuant to the executive order and will carry out such sanctions and penalties for violation of equal opportunity clause as may be impose~ upon contractors and subcontractors by HUD or the Secretary of Labor pursuant to Part II, Subpart B of the Executive Order. In addition, the CITY agrees that if it fails or refuses to comply with these undertakings, the cOUNTY may take any or all of the following actions: Cancel, terminate or suspend in whole or in part the grant or loan guarantee~ refrain from extending any further assistance to the CITY under the program with respect to which o the failure or refusal occurred until satisfactory assurance of future compliance has been received from such CONTRACTOR. (Source: H/CD Funding Agreement ~4 and Executive Order 11246, Part II, Subpart B, Section 202, Title 24 CFR 130, revised April 1, 1984.) C. Federal Labor Standards Except with respect to the rehabilitation of residential property designed for residential use for less than eight families, the CITY and all contractors engaged under contracts in excess of $2,000.00 (Two Thousand Dollars and no/100) for the construction, prosecution, completion or repair of any building or work financed in whole or in part with assistance provided under this contract, shall comply with HUD requirements pertaining to such contracts and the applicable requirements of the regulations of the Department of Labor under 29 CFR Parts 3 (Copeland Act), 5, and 5a (Davis-Bacon Act), governing the payment of wages and the ratio of apprentices and trainees to journeyman: Provided, that if wage rates higher than those required under such regulations are imposed by state or local law, ~age 5 of 13 1 '2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 nothing hereunder is intended to relieve the CITY of its obligation, if any, to require payment of the higher rates. · The CITY shall cause or require to be inserted in full, in all such contracts subject to such regulations, provisions meeting the requirements of 29 CFR 5.5 and for such contracts in excess of $10,000, 29 CFR 5. The "Federal Labor Standards Provisions" (HUD 4010) are made part of this contract. No award of the contracts covered under this section of the contract shall be made to any contractor who is at the time ineligible under the provisions of any applicable regulations of the Department of Labor to receive an award of such contract. (Source: H/CD Funding Agreement ~7) Ail documents submitted by the CITY to the COUNTY which are required for compliance with the Federal Labor Standards, shall be certified as being true, accurate, and complete by the City Engineer or the Director of Public Works. (Source: Orange County H/CD) D. Non-Discrimination The CITY in an activity directly or indirectly financed under this contract, shall comply with: 1. Title VI of the Civil Rights Act of 1964 (Pub. L. 88-352), and the regulations issued pursuant thereto (24 CFR Part 1), which provides that no person in the United States shall on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity for which the applicant receives Federal financial assistance and will in~uediately take any measures necessary to effectuate this assurance. If any real property or structure thereon is provided or improved with the aid of Federal financial assistance extended to the applicant, this assurance shall obligate the applicant, or in the case of any transfer of su~ property, any transferee, for the period during which the real property or structure is used for a purpose for which the Federal financial assistance is extended, or for another purpose involving the provision of similar services or benefits. ~age 6 of 13 1 2 3 4 5 6 7 8 9 10 11 13 14 15 16 17 18 19 2O 21 23 24 ~6 27 2. Title VIII ~f ~he Civil Rights Act of 1968 (Pub. L. 90-284), as amended, administering all programs and activities relating to housing and comunity develo[auent in a manner to affirmatively further fair housing~ and will take action to affirmatively further fair housing in the sale or rental of housing, the financing of housing, and the provision of brokerage services. 3. Section 109 of the Housing and Community Development Act of 1974, and ~he regulations issued pursuant thereto (24 CFR Part 570.602), which provides that no person in the United States shall on the grounds of race, color, national origin, or sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under, any program or activity funded in whole or in part with funds provided under this Part. 4. Executive Order 11063 on equal opportunity in housing and nondiscrimination in the sale or rental of housing built with Federal assistance. o (Source: Title 24 CFR Part 570.601, revised April 1, 1984) E. Accessibility/Usability of Facilities and Buildings for Physically · HandicaD~ed 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 'American Standard Specifications for Making Buildings and Facilities Accessible to, and Usable by, the Physically Handicapped,' Number A- l17.1-R 1971, subject to the exceptions contained in 41 CFR 101-19.604. The CITY will be responsible for conducting inspections to insure compliance with these specifications by any contractor or subcontractor. (Source: 2~ CFR Part 570.202(K), revised April 1, 1984) F. Relocation 1. The CITY in any activity directly or indirectly financed under this contract shall: Page 7 of 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 a. To the greatest extent practicable under State law, comply with Sections 301 and 302 of Title III (Uniform Real Property Acquisition Policy) of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 and will comply with Sections 303 and 304 of Tit~e III, and HUD implementing instructions at 24 CFR Part 42; and b. Inform affected persons of their rights and of the acquisition policies and procedures set forth in the regulations at 24 CFR Part 42 and 570.606 revised April 1, 1984) 2. The CITY shall also: a. Comply with Title II (Uniform Relocation Assistance) of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 and HUD implementing regulations at 24 CFR Part 42 and 570.606; b. Provide relocation payments and offer relocation assistance as described in Section 205 of the Uniform Relocation Assistance Act to all persons displaced as a result of acquisition of real property for an activity assisted under the Community Development Block Grant Program. Such payments and assistance shall be provided in a fair and consistent and equitable manner that insures that the relocation process does not result in different or separate treatment of such persons on account of race, color, religion, national origin, sex, or source of income; 3. Assure that, within a reasonable period of time prior to displacement, comparable decent, safe and sanitary replacement dwellings will be available to all displaced families and individuals and that the range of choices available to such persons will not vary on account of their race, color, religion, national origin, sex, or source of income; and 4. Inform affected persons of the relocation assistance, policies and procedures set forth in the regulations at 24 CFR Part 42 and 570.606. (Source: Title 24 CFR Part 570.606, revised April 1, 1984) Page 8 of 13 1 2 3 4 5 6 7 8 .9 10 11 13 14 15 16 17 18 19 2O 21 23 24 27 G. Lead-Based Paint Hazards The construction or rehabilitation of residential structures with assistance provided under this Contract is subject to the HUD Lead-Base Paint regulations, 24 CFR Part 35. Any grants or loans made by the CITY or work performed by the CITY for the rehabilitation of residential structures with assistance provided under this Contract shall be made subject to the provisions for the elimination of lead-base paint hazards under subpart C of said regulations and the CITY shall be responsible for the inspections and certifications required under Section 35.24 thereof. (Source: H/CD Funding Agreement %5 and 24 CFR Part 35 and 570.608 revised April 1, 1984) H. Flood Disaster This Contract is subject to the requirements of the Flood Disaster Protection Act of 1973 (P.L. 93-234). No portion of the assistance provided under this 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 Secretary as having special flood hazards, which is located in a community not then in compliance with the requirements for participation in the national flood insurance program pursuant to Section 201(d) of Said Act~ and the use of any asSistance provided under this Contract for such acquisition or construction in such identified areas in communities then participating in the national flood insurance program shall be subject to the mandatory purchase of flood insurance requirements of Section 102(a) of said Act. Any Contract or Agreement for the sale, lease or other transfer of land acquired, cleared, or improved with assistance provided under this Contract shall contain, if such land is located in an area identified by the Secretary as having special flood hazards and in which the sale of flood insurance has been made available under the National Flood Insurance Act of 1968, as amended, 42 U.S.C. 4001 et seq., provisions obligating the transferree and its successors or assignees to Page 9 of 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 obtain and maintain, during the ownership of such land, such flood insurance as required with respect to financial assistance for acquisition or construction purposes under Section 102(a) of the Flood Disaster Protection Act of 1973. Such provisions shall be required notwithstanding the fact that the construction on such land is not itself funded with assistance provided under this Contract. (Source: H/CD Funding Agreement #3) The CITY shall comply with the provisions of Executive Order 11296, relating to evaluation of flood hazards and Executive Order 11288 relating to the prevention, control, and abatement of water pollution. (Source: Title 24 CFR 570.605 revised April 1, 1984) I. Compliance with Air and Water Acts The CITY shall cause or require to be inserted in full in all non-exen contracts or subcontracts for work furnished ih whole or in part by the grant contracts, the following requirements (provided that contracts, subcontracts and subloans not exceeding $100,000.00 (One Hundred Thousand Dollars and ~o/100) are exempt from this part: This Contract is subject to the requirements of the'Clean Air Act, as amended 42 USC 1857 et seq., the Federal Water Pollution Control Act, as amended 33 USC 1251 et seq., and the regulations of the Environmental Protection Agency with respect thereto, at 40 CFR Part 15, as amended from time to time'. In compliance with said regulations, the CITY shall cause or require to be inserted in full in all contracts and subcontracts dealing with any non-exempt transaction thereunder funded with assistance provided under this contract, the following requirements: 1. A stipulation by the contractor or subcontractors that any facilitl to be utilized in the performance of any non-exempt contract or subcontract is not listed on the list of Violating Facilities issued by the Environmental Protection Agency (EPA) pursuant to 40 CFR 15.20. Page 10 of 13 1 2 3 4 5 6 7 8 9 10 11 13 14 15 16 17 18 19 2O 21 22 23 24 27 28 2. Agreement by the contractor that he will comply with all the requirements of Section 114 of the Clean Air Act, as amended (42 USC 1857c-8) and Section 308 of the Federal Water Pollution Control Act, as amended (33 USC 1318) relating to inspection, monitoring, entry, reports and information, as well as all other requirements specified in said Section 114 and Section 308, and all regulations and guidelines issued thereunder. 3. A stipulation that as a condition for the award of the contract prompt notice will be given of any notification received from the Director of the EPA, Office of Federal Activities or any agent of the office, that a facility utilized or to be utilized for the contract is under consideration to be listed on the EPA list of Violating Facilities. 4. An Agreement by the contractor that he will include or cause to be included the criteria and requirements in paragraph (1) through (4) of this section in every non-exempt subcontract and requiring that the contractor will take such action as the Government may direct as a means of enforcing such provisions. In no event shall any amount of the assistance provided under this contract be utilized with respect to a facility which has given rise to a conviction under Section 113(c)(1) of the Clean Air Act or Section 309(c) of the Federal Water Pollution Control Act. (Source: H/CD Funding Agreement #6) J. Management Com~liance The CITY in any activity directly or indirectly financed under this contract shall comply with regulations, policies, guidelines and requirements of OMB Circular No. A-102, Revised, and Federal Management Circular 74-4: Cost principles applicable to grants and contracts with State and local governments, and Federal Management Circular 74-7: Uniform Administrative Requirements for grant-in-aid to State and local 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, 1984) P. age 11 of 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 K. Obligations of Contractor with Respect to Certain Third Party 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 under this contract to the CITY. Such third party or parties shall comply with all lawful requirements of the CITY necessary to insure that the program with respect to which assistance is being provided under this contract to the CITY is carried out in accordance with the CITY's assurances and certifications, including those with respect to the assumptio~ of environmental responsibilities of the CITY under Section 104(h) of the Housing and Community Development Act of 1974. (Source: H/CD Funding Agreement %9) L. Interest of Certain Federal Officials No member of .Delegate' to the Congress of the United States and no Resident Commissioner, shall be admitted to any share or part of this contract or to any benefit to arise from the same. (Source: H/CD Funding Agreement %10) M. Interest of Membersr Officers or Employees of CITY, Members of Local Governing Body or Other Public Official~ No member, officer or employee of the COUNTY or CITY or its designees or agents, no member of the governing body of'the locality in which the program is situated and no other public official of such locality or localities who exercise any functions or responsibilities with respect to the program during his tenure or for one year thereafter, shall have any interest, direct or indirect, in any contract, subcontract or the proceeds thereof, for work to be performed in connection with the program assisted under this contract. The CITY shall incorporate or cause to be incorporated, in all such contracts or subcontracts a provision prohibiting such interest pursuant to the purpose of this section. (Source: H/CD Funding Agreement ~11, Title 24 CFR 570.611 and 570.458(14)(M)(X), Page 12 of 13 2 3 4 5 $ 7 8 9 10 11 13 14 15 16 17 18 19 2O 21 23 24 26 27 revised April 1, 1984) N. Prohibition Against Payments of Bonus..or Con~ission The assistance provided under this contract shall not be used in the payment of any bonus or commission for the purpose of obtaining HUD approval of the application for such assistance or HUD approval of application for additional assistance of any other approval or concurrence of HUD required under this contract, provided, however, that reasonable fees or bona fide technical, consultant, managerial or other such services, other than actual solicitation, are not hereby prohibited if otherwise eligible as program cost. (Source: H/CD Funding Agreement %12) 0. Hatch Act Compliance The CITY and COUNTY shall comply with the provisions of the Hatch Act .which limits the political activity of employees. (Source: Title 24 CFR Part 570.458 (14) (M) (Xl), revised April 1, 1984) P. Definitions · Throughout these Special Provisions the meaning of words shall .be that meaning given by the act, regulation, Executive Order, Federal Management Circular, agreement, or rule cited herein as the Source for the section in which the word appears. (Source: Orange County Counsel) Q. Note Federal Management Circular 74-7 has been replaced with Office of Management and Budget (OMB) A-102. III III III III III III JN: bjgARCDH5-8 2/21/85 Page 13 of 13 7 744 .-o · City ol 1 Santa Aha 744.03 757.02 EXHIBIT B CONTRACT NO. C4~ .02 .06 ~,~.oullng/Community Oevelo~ TusTIN ENVIRONMENTAL MANAGEMENT AGENCY EXHIBIT IMPROVEMENT PROGRAM POLICY MANUAL (Revised) ~Y OF ORANGE ~VlItONMENTAL MANAGEMENT AGENCY BOUSING/C~ITY DEVELOPMENT PROGRAM OFFICE 1200 N. Main Street, Suite 600 Santa Aha, California 92701 Approved by the Board of Supervisors September 18, 1984 HOME IMPltOVEMENT P/tOGRAM POLICY MANU~ Table of Contents Page ~eneral Provisions Section i Section 2 Section 3 Section 4 Section 5 APPENDIX A LOW INTENT LOANS 1.01 Low Interest Loans 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 1.10 Eligibility Requirements Rental Property Mobilehome Applicant ! s Income FHA Title I Insurance Eligible Improvements Temporary Relocation Assistance Processing Low Interest Loans Truth-In-Lending Requirements DEFERRED PAYMENT LOANS 2.01 2.02 2.03 2.04 2.05 2.06 2.07 Deferred Payment Loans Approval of Deferred Payment Loans Eligibility Requirements Applicant t s Income Eligible Improvements and Costs Temporary Relocation Assistance Processing Deferred Payment Loans SPOT 3.01 3.02 1 2 4 5 5 7 7 8 10 15 15 16 16 17 17 19 19 REHABILITATION LOANS Spot Rehabilitation Loans 20 Processing of Spot Rehabilitation Loans 20 I~F~/ABILITATION GRANTS 4.01 Rehabilitation Grants 4.02 Processing Rehabilitation Grants REBATE PROGRAM 5.01 5.02 5.03 5.04 General Applicant Eligibility Eligible Repairs Workmanship PROPERTY ~ILITATION STANDARDS 20 21 22 22 22 23 24 General Provision: A. Purpose of Pro. ram The Home 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 Housing and Cmmuunity Development Program Office (H/CD) and approved by the U.S. Department of Housing and Urban Development (HUD). The prJ3nary objectives are to upgrade and preserve viable urban co~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 permitted and encouraged by the C3~G Act. The County Board of SupervisoEs, in keeping with the intent of the legislation, authorized a significant portion of its annual CDBG funds to be used for a Home Improvement Program, Approved H/CD funds shall be reserved for loans and grants to low/moderate income and qualified applicants, as determined by various approved Rehabilitation Programs. C. Fundin~ Sources Hadst funding comes from the Housing and Community Development Block Grant Act (CDBG) of 1974, as amended, by the United States Housing and Urban Development Department (HUD). 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 Bore funding aources may be used to cover the entire cost of rehabilitating a particular housing unit(s). D. Applicability of Other Federal/State Re~ulations While all rehabilitation loans are subject to the requirements of this manual, there are apecial provisions and limitations on the making of rehabilitation loans depending on the type of pro~ect or program area. Consequently, in addition to the provisions of this Policy Manual, rehabilitation loans made on property under this program are sub~ect to the rules and regulations of the CDBG Act of 1974 as amended, by HUD, and regulations governing the use of other Itate or federal funds which may become available. B. Financial Institutions Upon rec~endation by H/CDProgram Office, the Board of Supervisors may approve contracts with one or Bore financial institutions to process loans/grants for the rehabilitation of single-family and ~lti-family units. -l- F. Application Files The County of Orange and the financial institutions shall ~aintain an application file for each application it processes. The file · aintained at the financial institution shall be separate from, and in addition to, any other file ~aintained by the County of Orange. Copies of the financial institution's files shall be made available to the County of Orange, FOD, or appropriate state or federal officials, upon an appropriate request. G. Author The Director of the Environmental Management Agency (EMA), is responsible for the County Home Improvement Program, H/CD. The Manager of EMA's H/CD Program Of£ice has been designated'by the Director to be responsible for the Home Improvement Program. The-Housing Program Section Chief may act on behal[ of the H/CDManager 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, assum~tion 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. H. Security Agreements Subordination agreements, assumption agreements and other instruments necessary to adjust security can only be allowed when: The revised total amount of loans enco-~ered does not exceed 80 percent of the value of the property, or 2. Modified transaction does not threaten the secured £nterest of the County. ' 3. Approval and authorization is obtained from the H/CDManager. 4. Modified security agreements will only be authorizedwhen it is necessary to implement the Program. 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 the value of an o~nership interest in a business. This provision does not apply to landlords applying for rehabilitation of rental property. -ii- J. CDBG Act of 1974 - Authorization The folloving aections outline the guidelines and policy procedures for the County' s Home Improvement Program. Section 570.202 Is the specific provision of the CDBG Act of 1974, as amended, which authorizes the County to make CDBG funds available for ho~e improvement purposes. Whenever the use of funds and/or activity under this program is in doubt, Section 570.202 shall prevail. THIS POLICY ~ SUP~BS THE HOME INPI~7~EM~fT PI~)GllAM POLICY ~ AND ~T.Y.. ~J~T~I4ENTS AND REVZSICX~S PREVZ~L! APPROVED BY ~KK BOARD OF SUPERVISORS OH IO.Y 10r 1983. -iii- Section 1.01 ~o~ Interest Loans The County ~akes available lcae interest loans to qualified applicants through the Ho~e I~prove~ent Programs and financial lnstitutio~s approved b~ the Board of Supervisors. B. Approval A rehabilitation loan may be approved only when the follo~ing conditions exist: 1. ~n executed Grant Agreement exists between the County of Orange and NUD under Title ! of the CDBG Act of 1974, as a~ended, ~nd 2. Bxecuted agreement(s) exist bet~eeen a fi~ncial institution(s) and the County of Orange to provide rehabilitation loans to property o~ners, or 3. Agreements have been executed with other federal and/or state ~encies to ~ake 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 H/CD office will retain in its files the copies of notification to the applicant of loan decision by the financial institution. No rehabilitation ~rk is to be performed prior to this notice by the financial institution and the County's Notice to Proceed. In case of e~ergency health and safety conditions or special circu~stances the H/CDNanager may authorize ~ork to proceed prior to notification from the financial institution. D. Restrictions on N,,~her of Loans The number of lo~ interest or deferred payment rehabilitation loans ~hich may be ~ade to any property o~ner under the B~e I~=ove~nt Pz~ra~ ~s one (1) unless waived in writing by ~e H/~ ~nager. ~quests fo~ a waiver o~ ~is restriction .~11 ~ ~ade ~ ~e l~n a~licant, In ~riti~, ~ ~e ~ager. ~uests to the ~nager .ust ~ a~~ied ~ the rec~endati~ of ~e Bousing Pr~=a. S~tion ~ief. If a r~uest for a ~aive= of ~is one (1) loan restriction Is deni~ ~ ~e ~naqer, l~n a~lic~t ~y a~eal the decision ~ the Dir~tor of ~. -1- Section 1.02 Eligibility Requirements A. Property Eligibility Requirements A rehabilitation loan may be made to properties located 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 (Append/x A). B. Applicant ~ligibility 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 required payment. & 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 a 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. 1. Three (3} Percent Interest Loan Priority 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 per io~ically by HUD. This income -2- limitation shall not apply to investor-owners participating in the Rental Rehabilitation Pro, ram. ?he County H/CD Pro, ram has identified by formal application to HUD specific target areas for concentrated use of Housing and Connunity Development funds. Applicants, who live within the designated target areas and whose incomes are at or below these limits are eligible to apply for three (3) percent loans o Interest rates for Spot Rehabilitation loans made Outside of an approved target area shall also be three (3) percent for homeowners who ~eet the 80 percent median income criteria. For luther detail, see Section 3.01 on Spot Rehabilitation. The H/CD Nanager Bay raise these income limits by 20 percent upon staff confirmation of the existence of a health and safety hazard. 2. Six (6} Percent and Nine {9} Percent Interest Loans In order to provide an incentive to the rehabilitation of substandard rental units for the benefit of L/N income tenants, Six (6) and Nine (9) Percent Interest Loans may be Bade to qualified rental property owners on the condition that these owners agree to comply with the requirements of Section 1.03 of this Policy lianual. D. Loan Amount The muinun for a loan Bade shall be $45,000.00 for structures of one to three units. For four or more units the max£mum loan shall not exceed $15,000 per unit. & eobilehone rehabilitation loan may not exceed $10,000 unless waived in writing by the H/CD Hanager. Refinance As allowed by Section 570.202(c) (2) iii) (B) of the Housing and Comunity Develolxnent regulations, refinancing may be permitted if it is necessary to complete the rehabilitation work for low/moderate inco~e applicants. The section reads 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 Conuunity Development and Housing Plan.' If refinancing is over 20 percent of the clients indebtedness, Housing Program Section Chief uust obtain Nanager*s approval. The loan applicant is subject to the sane loan limits described in D above. For refinancing delinquent loans see Section 1.09 (13). -3- Section 1.03 RENT~PROPE~ Rental properties may be eligible, at the present time, under three programs~ The County's Investor-Owner Prog£am, the Section 8 Moderate Rehabilitation Program and the Rental Rehabilitation Program. Under these programs, following rehabilitation, the ~aJority of the units shall be occupied by low- and moderate-income persons at affordable rents. Other programs may become available when approved by the County Board of Supervisors. A. Countyts Investor-Owner Pro, ram 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 wi~h Section 8 rental assistance or vouchers. The Housing Program Section Chief will make a determination of.acceptability of these efforts. &pplicant 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) years to lower income persons or families (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 R/CD office in writing that no displacement of renters will occur, and that units to be rehabilitated will be made available to low/moderate income renters. Owner m~st agree to accept Section 8 Certificates or vouchers that will be provided through the County oE Orange Housing &uthority 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. C. Rental Rehabilitation Grant Pro, ram 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 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 (10) 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 P£ogram Section Chief will make a determination of acceptability of these efforts. Applicant may appeal negative finding(s) to the H/CD Manager. -4- -- Section !. 04 M0~ILEH0~ES In order to provide mobilehoue owner-occupants with a financing mechanism to rehabilitate their units, the County has established this program. The program provides for loans up to $10,000 grants up to $5,000. Where conditions warrant, the Panager may increase the grant amount, not to exceed t~enty percent for hazard to the health and safety of the applicant or the comunity. 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 o~'ner: A. Owner must show proof of ownership either by: 1. Possessing a State of California of Housing and Co~nunity Development Certificate of Title, Mobilehome, or 2. A California Department of Motor Vehicles Ownership Certificate (known as a pink slip). 3. Other documents as may be required b~ HUD or the State H/CD Department. B. The remaining economic life of the mobilehome must be at least five (5) years or Bore. C. Hobilehoue must be peramantely 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 loan, an owner-occupant applicant is classified as being either low/moderate income or above low/moderate income or an investor-o~ner. Lo~/moderate inccem is 80 percent of the county's ~edian income, as defined and periodically updated by BUD. B. Income Omponents The following is a list of components that comprise the total income allowed an applicant for a rehabilitation loan. The -5- gross income of the applicant and his/her family is used to determine eligibility. Rowever, 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 or heir's income. The applicant's family includes the applicant and any other person(s) related by blood, marriage, or operation of law, who share the same dwelling unit and/or have ownership interest in the property. An applicant's gross income must be established on an annual basis for the preceeding two years at the time of applying for a rehabilitation loan and may include, but is not limited to: 1. The applicant's gross earnings. 2. Spouse's gross earnings and contributions from other members of the family who share the household must be considered if employment and earnings are on-a regular basis. 3. Other income regularly received by the applicant or his/her family from any source. 4. Income from assets including savings, stocks, bonds, vacant land, etc. 5. 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 for two or more years, the County of'Orange shall estimate the income and expenditures on the available data. 6. Self-Employment If self-employed, the average allowable income from the two most recent income tax returns shall be used in determining applicant's eligibility. The following method shall be used in determining present income for self-employed individuals: plus Net profit or loss Depreciation and Depletion equals Net Income 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. -6- 1. ~edica! expenses for a ~a~or illness or chronic condition ~hich are not covered by insurance. Supporting documentation ~ust be submitted to H/CD as evidence of a · a~or pe:manent illness or chronic condition. 2. Unusual expenses or a~ounts paid for the care of minors under 18 years of age or for the care of disabled or handicapped family household members, but only where ouch care Is necessary to enable a family member to be gainfully employed. D. F~clusions fro~ lnco~e The folloeing inco~e is excluded in determining income eligibility: 1. The income of a child 18 years of age or younger; 2. Child support, including social security or pension funds, and income from a trust fund established for the child; 3. The income of a child who is a fullotime student living at home, and is 21 years or younger; 4. The income of a co-signer or heir who does not reside on property may be excluded provided that a notarized statement of non-support is submitted. Such co-signer or heir may not be counted as a family member for the purpose of income- level calculation. Section 1.06 FHA Title ! Insurance Whenever possible, loans will be processed by the financial institution for F~ATitle I InSurance. Section 1.07 A. General Eligible ImPr0venents 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 au thor i ty. B. W-ligible Improvements 1. Additions and alternations to prolong the livability or usefulness of existing structures such as rooms, porches, stairways, closets, bathrooms, and entrances are eligible, as determined necessary by the H/CD Senior Building Inspector. -7- 2. Rxterior ~ork to help preserve or protect structures, such as grading, painting, roofing and siding, is eligible. 3. Interior ~ork to make a structure ~ore livable such as painting, papering, plastering, new flooring and tile work is eligible. 4. Also eligible are repairs, restoration or replacement of important parts of structures such as heating systems, plumbing repairs, 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 funded. 6. Items considered necessary to provide handicap accessibility and/or remove architectural barriers to the handicap. 7. Items necessary for historical restoration/preservation. C. Mandatory Improvements Razardous conditions ehich are a direct threat to the health, safety and general welfare of occupants as defined in the Uniform Rousing Code and/or Property Rehabilitation Standards as defined by AppendixA, must be corrected. D. Ineligible Improvements The following improvements are not eligible: Barbecue pits, bathhouses, burglar protection bars, dumbwaiters, wet bars, greenhouses, greenhouse windows, airplane hangars, kennels, outdoor fireplaces or hearths, photomurals, swimmng 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 Temporary 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 from 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 zehabilitation. -8- B. Conditions Requiring Temporary Relocation If any of the following causes or conditions occur as a result of the Hone Improvement Program, it Bay be necessary for the persona or families to relocate to another dwelling on a temporary basis: #star system is shut off for any extended period of days for plumbing repairs. 2. Blectrical service becoues non-operable while asking repairs to wiring. 3. Repairs which create dust and other conditions which would aggravate allergic condition of occupant(s). 4. Structure is to be fumigated fOr termite control and infestation. 5. Hazardous living conditions which result from structural changes during construction. Sanitation facilities~ e.g., tub, wash basin, toilet become non-operable. 7. Contractor requires relocation of occupants to perform 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 accommodations 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 oont~act. County will pay the cost of the temporary accom~odations up to a daily ~aximum equal to the Housing Authority's rent limitations prorated on a daily basis. 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. -9- Request for vacating of premises Bust be approved, in writing, by rehabilitation staff and authorized by H/CD Manager. 2. Person dis~laced presents written quote fro~ accoe~odation to rehabilitation staff. Staff will then verify that displaced persons occupied unit and staff will also verify amount of quote. 3. Rehabilitation staff will present claim form to Auditor- Controller with a request for payment. Payment will be ~ade payable, Jointly, to person displaced and persons who provided accommodation. Section 1.09 Processing Low Interest Loans A. General This section sets forth the steps which are to be followed in the processing of a rehabilitation loan: 1. Initial Contact Marketing effort/strategy includes, but is not limited to: Press releases to metropolitan and local newspapers~ Public Services Announcements (PSAs) for television and radiol articles in magazines, newsletters and newspapers~ paid advertisements in the print media~ staff appearances on public service radio and television programs~ flyers distributed by mail 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 or given to the applicant. 2. ~oan Application If requested by applicant, loan application will be explained to homeowner by loan counselor who may assist in completing necessary forms. Otherwise, loan application will be mailed or given to applicant who will complete application. Preliminary Approval of Funding Authority Completed loan application will be forwarded by R/CD staff to financial institution and, if applicable, to the appropriate state or federal agency for funding authority -10 - Verify program eligibility of applioant. b. Verify that al~li~ant Is owner of property to be improved. c. Var lfy &pplicant* · income and employment, The income tax return· for the previous two year· will be obtained by H/CD staff.' d. Complete credit investigation. e. Advise homeowner in writing of approval/disapproval. When appropriate, items (a) through (e) may be required to be performed by the County prior to submittal to funding sources. 4. Termite Inspection A free ternite inspection will be arranged by the County for the h~neowner or property owner approved for a rehabilitation loan. The termite company will submit the inspection results to the rehabilitation specialist for ~clusion in the work write-up cost estimate. 5. Work #rite-up/Cost Bstimste A work write-up/cost estimate viii be compiled based on the initial inspection and the termite inspection report. Homeowner will be given a col~ of the work write-up for approval and will be advised of est~uate of loan necessary to complete rehabilitation work. 6. 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 ·election of qualified contractors for the ~ob). 'Qualified' means those contractors who are licensed by the State of California, who have applied to participate in the County's Home Improvement Program and who have received written approval of their participation in the program from H/CD. Ail bids must be returned within 20 calendar days unless otherwise specified. Bids will be opened in the -11- presence o£ the homeowner and H/CD sta£f will review bids. Responsibility for selection of a contractor rests with the homeowner. Homeowner must, hoeever, select a qualified contractor. Homeowner is not required to select lo~ bid, but, bid chosen must be within l0 percent of H/CD estimate. This requirement may be valved .by the Housing Program Section Chief Ln cases where the H/CD cost estimate is proven not to reflect current prices. b. O~ner-Bu ilder IIomeo~ner shall prove to the satisfaction of the rehabilitation specialist that he/she has the ability to perform tasks to be undertaken, including coordination of contractor (s). Where all or part of the ~ork is to be performed b~ the homeowner, then homeowner shall submit to the rehabilitation specialist a list of the materials, approximate costs for these items and a schedule for completion by homeowner. Only material will be reLmbursable, not the labor of the homeowner or immediate family member. This list will be submitted to H/CD pr Lot to preparation of bLd package. Homeowner may act on his/her o~n behalf to hire contractor(s) to complete various portion(s) of the work listed in the ~o£k write-up. Romeo~ers will identify the contractor(s) or laborers and the ~ork items ~hich contractor(s) or laborers will perform. FaLlure by property owner to comply with the above requirement will terminate his/her application. 7. Contract/Agreement Execution As a requirenent for funding of all loans, deferred payment loans, or grants~ A Property Owner Agreement must be executed between the property owner and H/CD. In conjunction with the Property Owner Agreement, the followLng contracts and/or agreements will be executed depending on method of rehabilitatLon chosen by client= a. Prime Construction Contract between homeowner and contractor or homeowner and sub-contractor, if applicable; i.e., owner-builder who subcontracts any portion of the agreed upon scope of work. -12 - b. Owner-Builder A~reenent for houeoeners who are approved to do their o~n rehabilitation ~ork or act as his/her o~n oontractor. In the event that homeowner wishes to provide i~pr°Ve~ents over and above eligible ~ork provided for, or perform a portion(s) of the ~ork her/hiamelf, the above contract(s) or · 9ree~ent(s) shall' reflect the total cost of ~ork to be done, what the prLue and/or subcontractores responsibilities are and work homeowner will perform. Evidence of availability of the additional funds required ~ust be verified and available prior to funding of loan. 8. ~xecuted Contracts H/CD may forward COl~ of final work write-up to the appropriate financial institutiOn or appropriate funding ogenc~ with request for loan documents. Financial institution(s) will prepare and forward loan docunents at interest rate previously detsrnined by H/CD and advise H/CD of interest subsidy due, if appropriate. Homeowner's payments will be in equal wonthly install~aents, the first install~ent payment due 30 calendar days from note date depending on financial institution policy. R/~D obtains borrower's signature on loan documents and returns all documents to the financial institution(s), if appropriate. 9. I~an Subsidy Loan subsidies will be governed by contracts with financial institutions 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. 11. Snoke Detector (s) Swoke detector(s) will be required in all rehabilitated residential structures. 12. Loan Disburse~ent a. Financial institution(s) may forward to H/CD loan proceeds in a lorn prescribed by the agency or financial institution and Bay disburse progress payments upon request of H/CD staff. Disbursements to clients will be Bade only after coeq~letion of inspection by rehabilitation specialist and verification of billings by H/CD. Proceeds will be disbursed by one of the following methods: -13- Progress Payments (draws) Contractor may not receive less than three progress payments except in cases where rehabilitation is of & minor nature. The pro~ress payments shall not exceed 90 percent of the cost of such work items determined by the bid breakdown. Progress payments due Contractor shall be paid after County approval of receipt and verification of contractor*s invoice(s) and satisifactory Release of Liens or 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 upon completion of all work, less 10 percent retention. Completion consists of passing final inspection and filing required release forms. If no liens are recorded retention will be disbursed to the contractor at expiration of lien filing period, thirty-five (35) calendar days after filing of Notice of Completion. 3) Homeowner Advancements Upon approval of the loan, the borrower (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 th'e type and level of rehabilitation work to be conducted and the amount of loan, H/CD may utilize escrow services for control of fund disbursement. 13. Loan Delinquencies The lender will provide County with a weekly, monthly, or quarterly list of delinquent borrowers. H/CDwill contact the borrowers. Should a delinquency continue and bank informs H/CD that foreclosure will result, H/CD Manager, -14 - upon recoe~endation of Housing Program Section Chief, in order to protect Countyts interest, ~ay decide to cure the default by refinancing existing Loan to a DPL if client qualifies. 14. Appeal A loan application which is disapproved ~ay be resub~itted for a I~PL or Grant described in Section 2 ahd Section 3 below. Subsequent rejection ~ay be appealed under Section 2o02B. Section 1.10 Truth in Lending Requirements R/CD shall meet all state and federal truth in lending requirements. Section 2. DEFERRED PAYMENT LOANS Section 2.01 Deferred Payment Loans A Deferred Payment Loan (DPL) is a zer° percent (0) interest loan. DPL's are intended to assist low/moderate income persons who are unable to finance rehabilitation work 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 results in the shortest time for repayment. If client sells or transfers property within five (5) years of receiving DPL, entire DPL principal plus three (3) percent interest Per annum will be paid~ if. sold or transferred after five years, no interest will be charged on DPL but entire principal will become due and payable. The DPL may not exceed loan limits of $45,000. Clienf~ shall execute a promissory note and secure it by a Deed of Trust. If title is transferred to an heir, an income analysis can be made to determine if heir is low/~oderate income and qualified to assu~e DPL, or if the DPL should be repaid. Ail assumptions of DPL's shall be approved by the H/CD Manager. Funding for the I~L 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. DPL's can also be made to rehabilitate publicly owned residential units. In order to preserve and upgrade affordable rental units for the benefit of low/~oderate 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 in fifteen (15) years or at time of transfer of title, whichever comes first. -15 - Section 2.02 Approval of Deferred Payment Loans A. The criteria for an approval of a DPL are: 1) Applicant must be of lc~/moderate income or qualified investor-owner in a target or spot area. 2) Applicant must be financially unable to Eepay loan with the exception of investor-owners in the Rental Rehabilitation Programs where the applicant's cash flo~ after rehabilitation is not sufficient for debt repayment and a DPL is deemed necessary to make the project financially feasible. . 3) Rehabilitation improvements are necessary to comply with existing health and safety codes. B. Approval tuthor A DPL will be approved or disapproved in writing by the Manager or his designee. R/CD shall notify applicant of results. A person whose application for a DPL has been disapproved may appeal to the Director of E MA 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 Rome Improvement Program is one (1). #aiver of limitation may be granted by the Manager. Section 2.03 Eligibility Re~uirements for DPLs ii. Applicant Eligibility Requirements A DPL is intended to avoid the displacement of homeowners who have no other means of financing repairs and _i_mprovements which must be made to their homes. A review of DPL's executed after June, 1983 shall be made every five (5) years to reevaluate 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 County's discretion. B. Income Limits The income limitations are those set by Section 1.02 (c) and 2.02. Section 2.04 lpplicant's Income Method of determining applicant's income will be noted in Section 1.05. -16- Section 2.05 Zligible Znprovenents and Costs &. ~eneral This section lets forth exau~les of ~mprovements and costs to be financed with a DPL. B. Bligible I~rove~ents and Costs A DPL ~ay be used to finance the cost of repairs and h~rove~ents 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 nay also be used to finance the cost and installation of enerqy conservation ~aterials. DPL*s ~ay also be used to remove handicap barriers and to provide handicap accessibility. Hazardous conditions which ere a direct threat to the health, safety and general welfare of occupants will be priority items to be corrected. C. Ineligible Improvements DPL may not provide for: 1. New construction or expansion of the size of a structure, except in Rental Rehabilitation programs or where overcrowding warrants. 2. 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. D. Insurance and Property Taxes The client shall ~aintain adequate fire and hazard insurance with the County listed as loss payee for the amount of the loan on the property, as required by the Home Improvement Program, and keep taxes current during term of DPL, except under special government programs allo~ed for elderly clients. Program Fees 1. Recording fees The cost of recording the Deed of Trust and other pertinent documents shall be waived as per Government Code, Section 6103. -17- 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. 3. Tax Service Co. Home Improvement Program may utilize services of a Tax Service Company. Cost shall be paid from loan proceeds. F. Maximum loan of $45,000 may be made and is subject to the same conditions set by Section 1.02 E. of this manual. G. Escrow of Rehabilitation 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. H. 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 Countyts median income. DPL assumptions may be considered when one of the following occurs~ 1. Judgement of Dissolution of Marriage. 2. Death of vested title holders. Heirs of property must be from the immediate family. 3. Title of property is transferred. -18- Section 2.06 ?e~orary l~elocation &ssistance Temporary relocation benefits that are available to applicant receiving a DPL are those described in Section 1.05 of this ~anual. · Section 2.0? Processin~ Deferred Pa~ent Loans &. Processing Procedures The processing of a I~L shall be the same as that of a subsidized, lo~ interest loan as noted in Section 1.09 of this Policy Itanual in addition to the following: 1. Determination of Preliminary ~ligibility Rehabilitation staff will develop necessary documentation to · ake determination of applicant eligibility for a DPL. 2. Obtain Prelininary Title Report, credit report, appraisal, if needed, and verify income. 3. Determination of Final Bligibility. &fter receiving preli~lnar~ title report and credit report, staff will ~ake a final rec~endation regarding applicant's eligibility for a DPL. ltecoemendation will be submitted to B/CD ltanager or his designee for approval. 4. Execution of ~nts If eligible, applicant will execute Promissory Note and Deed of Trust. &dditionally, applicant will execute DPL property ocher agreement. Once all documents are executed, Deed of Trust will be recorded, Promissory Note and Deed of Trust will be held by R/CD ~counting and H/~D will request title insurance policy coverir~ amount of loan from title company. 5. #otification of Loan lt~ount & signed DPL Approval Form will be forwarded to Il/CD &ccountin~ with the total amount needed for 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 ~anual, apply to all DPL's. -19- SECTION 3. SPOT REHABILITATION LOANS Section 3.01 Spot Rehabilitation Loans Spot rehabilitation is a component of the Rome Improvement Program. Low interest loans, DPL's and Grants are available to owner- occupants of low/moderate income, living in any contract city or county unincorporated area. In order to preserve and upgrade affordable rental units for the benefit of low/~oderate income tenants, investor-owners participating in the Rental Rehabilitation programs are also eligible to apply. Section 3.02 ~rocessin~ of S~ot Rehabilitation Loans Requirements for approval of spot rehabilitation loans are those noted in Section ! of this manual excepts Eligibility Requirements A. Property Eligibility Requirements A rehabilitation loan may be made to any qualified residential property owner located in the unincorporated area of the County of Orange, or in any part of a participating contracting city. B. Income Limits Spot rehabilitation loans to low/moderate income persons shall be subject to Section 1.02 C. (1) for 3 percent loans. C. 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 compliance with the Property Rehabilitation Standards approved by the Board of Supervisors, as amended. Spot rehabilitation loans may also be used to finance the cost 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 machanisms 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 emterials and labor to low/moderate income owner-occupants. The goal of the program is to rectify emergency health or safety hazards in the applicant's home and to provide energy conservation. -20- ~ection 4.02 ~rocessin~ ltehabi~i~atioa Grants &. · rehabi~itation grant ~ay be approved subject to the sa~e provisions as set £orth in Section 2 except as ~oted belo~ ~tpplicant Eligibility itequire~ents 1. Applicant ~ust execute Property O~ner Grant Agreement which provides that the o~ner returns 100 percent of the grant to County upon sale or transfer of title within one year of · greement execution and 50 percent of pretty upon sale or transfer of title trana£erred between one and two years after the execution of the ~greement. 2. A rehabilitation grant ~ay be used to finance the cost of repairs and improvements to comply with the Property Rehabilitation Standards approved by the Board of Supervisors and incipient violations of these standards. Grant funds may also be used to finance the cost and installation o£ energy conservation materials. The maximum amount of a rehabilitation grant may not exceed the follo~ing: (a) $8,000.00 for conventional single family units and $$,000 for ~obilehomes. (b) Where conditions warrant, the Manager may increase the grant amount, not to exceed twenty percent (of the above) for iminent hazard to the health and safety of the applicant or the com~unity. (c) $3,000.00 maximum for minor rehabilitation (mini-grants) in approved target area. B. Mini-Grants To eliminate blight or prevent further deterioration of a neighborhood, H/CDProgramOffice may provide small, minor repair/maintenance, rehabilitation, mini-~rants to qualified residents of a lo~/moderate income neighborhood. Under this ~tni-qrant program, the above resale restriction of 4.02 & (1) eill be waived. SECTION 5. REBATE PROGRAM Section 5.01 Rebate Pro, ram 5.01 ~eneral The County provides linited funding to provide rebates for previously approved home repairs which are prepaid by the o~ner and verified by H/CD. The rebates are made available for a minimum of $500.00 and a -21- · aximum of $3,000.00 for eligible ho~e repairs completed in selected target areas. Property owners are required to obtain written preapproval for all work subject to rebate. Property owners are required to select their own licensed contractor and to provide itemized, paid invoices covering all work. In the case of an approved o~ner builder, only materials shall be subject to rebate. Labor costs for owners and family members are not subject to rebate. 5.02 Applicant Eligibility someowners who live within a target area and whose inccmes are 80t or less of the County Median Income (as defined and periodically updated by HUD) are eligible for 100t rebate (up to $3,000.00) for approved work. Homeowners shall submit income tax returns to verify income and property tax bills to verify ownership. 5.03 Eligible Repairs This section sets forth, but does not limit, expenses of eligible repairs for the rebate program. Such repairs shall be judged feasible to preserve and repair the subject property through minor rehabilitation, including exterior painting. Repairs which have not been approved in writing prior to their completion shall not be eligible for rebate. The following list gives examples of rebate-eligible repairs: Roof repairs/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 roof over an old roof is not subject to rebate. *Rebates are not available for 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. 3T: desDH5:1 -22- os/31/84 Appendix A PROPERTY REHABILITATION STANDARDS RESIDENTIAL PROPERTIES COUNTY OF ORANGE ~qVIR~AL MANAGEMENT AGENCY BDUSING/C~ITY DEVELOPMENT DIVISION April 7, 1983 Ih'TI~O~ION C~,PTER i (~IPTER 3 (~P~R 4 (~At'TE R 7 C~APTE R 8 C~PTER 9 C~AP~R 10 C~APTER 12 TITLE AND SCOPE ENFORCEMENT PERMITS AND INSPECTIONS DEFINITIONS SPACE AND OCCUPANCY STRU~ REQUIREMENTS ~EC2ULNICAL REQUI~S EXITS FIRE PROTECTION SUBSTANDARD BUILDINGS ENERGY CONSE~TION REQUIREMENTS FOR PHYSICALLY HANDICAPPED Page 1 9 10 10 12 12 INTRODUCTION The "Property Rehabilitation Standards" (PHS) as denoted herein have been estab- lished after considering many codes and suggestions by the Federal Housing Administration. These PHS are the Uniform Housing Code, 1979 Ed/t/on, except for some minor revisions and additions, and shall be the guide for the County in i~plementing its Home Improvement Program. These PHS shall constitute the basis of 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 designated 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 PHS are minimum property standards and not ideal property standards. Where actual rehabilitation occurs, replacements may be required which go beyond the minimum standards in order that the CDBG funds be utilized in a sore effective manner and a longer lasting repair be made to structures. For example, in areas where there is a generally recognized condition of expansive soils, larger footings may be required by H/CD. Additionally it is recognized that a flexible interpretation of the Uniform Building Code is utilized in the Home Improvement Program since to require an existing older dwelling to conform 100% to the Uniform Building Code may be cost prohibitive. Chapter 1 T/TL~ J~/qD SCOPE TITL~ Sec. 101. These Property ltebllitation Standards are to be referred to herein as PRS. PURPOSE Sec. 102. The purpose of these P~S is to provide eint~um standards to safeguard life, limb, health, property, safety, and welfare of the general public and the o~ners and occupants of residential buildings within Jurisdiction of the County of Orange and those cities ~hose rehabilitation programs are 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 ~ay be continued as provided in Section 104 (G) of the Building Code, except such structures as are found to be substandard as defined in these PRS. #here any building or portion thereof is used or intended to be used as a combination apar~ent house-hotel, the provisions of these PRS shall apply to the separate portions as if they were separate buildings. Bvery rooming house or lodging house shall comply with all the requtrenents of these PRS 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 accord- ance with Section 104 (a) and (b), of the Building Code. However, exceptions may be permitted provided health, safety, and general welfare of persons con- cerned are not adversely affected. (c) Relocation. Buildings or structures ~oved into or within the Jurisdiction shall comply with the require~ents in the Relocated Buildings Code for new buildings and structures. Chapter 2 Sec. 201. (a) Authority. The Rousing and Comunit¥ Development Nanager is hereby authorized and directed to administer and enforce all of the provisions of these PRS. -1- (b) Right of Entry. Whenever necessary to make an inspection ~o enforce any of the provisions of these PHS, or whenever the Housing and Com~unity Develolmaent Manager or his authorized representative has reasonable cause to believe that there exists in any building or upon any premises, any condition which makes such building or premises unsafe, dangerous, hazardous, or substand- ard as defined in Section 202 of these PHS, the Housing and Comunity Development Manager or his authorized representative may enter such building or premises at all reasonable times to inspect the same or to perform any duty imposed upon the Housing and Comunity Development Manager by these PHS; provided that if such building or premises were 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 owner 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 law to secure entry. No owner 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 provided, to promptly permit entry therein by the Housing and Con~unity Develop- ment Nanager or his authorized representative for the purpose of inspection and examination pursuant to these PHS. ~my person violatin~ this subsection shall be guilty of a misdemeanor. (c) Responsibilities Defined. Every o~ner remains liable for violations of duties imposed upon him by these PRS even though an obligation is also imposed on the occupants of his building, and even though the owner has, by agreement, imposed on the occupant the duty of furnishing required equipment or of complying with these PHS. Every owner, or his agent, in addition to being responsible for maintaining his building in a sound structural condition, shall be responsible for keeping that part 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 two or ~ore dwelling units. ~very oener shall, where required by these PHS, the health ordinance or the health officer, furnish and maintain such approved sanitary facilities as required, and shall furnish and maintain approved devices, equipment, or facilities 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 addition 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 PP~ and by other laws and regulations, furnish and meintain 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 ~nd shall be abated by repair, rehabilitation, demolition, o£ removal in accordance with the procedure ~pecified in Chapter 2, as a~ended (Ordinance 3062). Chapter 3 PERMITS AND INSPECTIONS Sec. 301. No person, firm, or corporation shall erect, construct, enlarge, alter, repair, ~ove, 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 fro~ the Building Official in the ~anner and according to the applicable conditions prescribed in Chapter 3 of the Building Code and in Section 302 of Ordinance No. 3061. Sec. 302. #henever a building permit is required b~ Section 301 of these PITS, the appropriate fees shall be paid to the Building Official as specified in Section 304 of the Building Code and of Ordinance No. 3061. INSPECTION Sec. 303. All buildings or structures within the scope of these PItS and all construction or ~ork for ~hich a permit is required shall be subject to inspection by the Housing and Comunity Develolxnent ~anager and the Building Official in accordance with and in the ~anner provided b~ these PRS and Sections 305 and 306 of the Building Code. Chapter 4 DEFINITIONS Definitions Sec. 401. For the purpose of these p~s, certain abbreviations, terms, 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 Officials 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. -3- HOT IO, Ti:R. ~.Hot water shall be water at a temperature of not les_s than 100OF. MECHANICAL CODE shall mean the Uniform Mechanical Code, published by the International Conference of Building Officials and the International Association of Plumbing and Mechanical Officials and the Code currently adopted by the Board of Supervisors, County of Orange. NUISANCE. The following shall be defined as nuisances: 1. Any public nuisance known at connon law or in equity jurisprudence. 0 Any 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 structures; or any lumber, trash, fences, debris, or vegetation which may prove a hazard for inquisitive minors. . Whatever is dangerous to human life or is detrimental to health, as determined by the Housing and Community Development Manager. 4. Overcrowding a room with occupants. 5. Insufficient ventilation or illumination. 6. Inadequate or unsanitary sewage or plumbing facilities. 0 Uncleanliness, as determined by the Housing and Connuunity Development Manager. 0 Whatever renders air, food, or drink unwholesome or detrimental to the health of human beings as determined by the Housing and Community Development Manager. Chapter 5 SPACE AND OCCUPANCY STANDARDS LOCATION ON PROPERTY Sec. 501. All buildings shall be located with respect to property lines and to other buildings on the same 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. Exit courts from apartment houses to the public way shall be not less than 44 inches in width and 7 feet in heighth. YARDS AND COURTS Sec. 502. (a) Scope. This Section shall apply to yards and courts having required windows opening therein. -4- (b) Yards. Every yard shall be ~t less than 3 feet in width for one-story end ~s~-story buildings. For buildings Bore than two stories in height the minimum width of the yard shall be increased at the rate of ! foot for each additional story, b'here 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 ~ted 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 Bore sides bM the walls of the building shall be not less than l0 feet in length unless bounded on one end by a street or yard. For buildings more than two stories in height the court shall be increased 1 foot in width and 2 feet in length for each additional story. For buildings exceeding 14 stories in height, the required dt~ensions shall be computed on the basis of 14 stories. A~equate acess shall be provided to t~e bottom of all courts for cleaning purposes. Every court Bore 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 abuting a yard or public space. The construction of the air intake shall be as required for the court walls of the building, but in no case shall be less than one-hour fire-resistive. (d) projection into Yards. Eaves and cornices may project into any required yard not Bore than 2 inches for each foot of yard width. Unroofed landings, porches and stairs may project into 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 exitway. ROOM DIMENS I~S Sec. 503. (a) Ceiling Heights. Habitable roo~s 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 ~easured to the lowest projection from the ceiling. Where exposed beam ceiling ~embers are spaced at less than 48 inches on center, the ceiling height shall be ~easured to the bottom of these members. Where exposed ceiling nend~ers are spaced at 48 inches or Bore on center, ceiling height shall be measured to the bottom of the deck supported by these nembers provided that the bottom of the Beubers is not less than ? feet above the floor. If any r°om in a building has a sloping ceiling, the prescribed ceiling height for 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. If any room has a furred ceiling, the prescribed ceiling height is required in tu~-thirds the area thereof, but in no case shall the height of the furred ceiling be less than 7 feet. (b) Floor Area. Bvery d~elling unit shall have at least one room which shall have not leas than 150 ~quare feet of floor area. Other habitable rooms except kitchens shall have an area of not less than 70 square feet. Where more than two persons occupy a room used for sleeping purposes the required floor area -5- shall be increased at the rate of 50 square feet for each occupant in excess of two. Additional sleeping rooms ~ay be provided to obtain proper separation of children or other dependents regarding sex. EXCEPTION: Nothing in this Section shall prohibit the use of an efficiency living unit within an apartment house meeting the following requirements: 0 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 closet. 0 The unit shall be provided with a kitchen sink, cooking appliance and refrigeration facilities each having a clear working space of not less than 30 inches in front. Light and ventilation conforming to these PItS shall be provided. 0 The unit shall be provided with a separate bathroom containing a water closet, lavatory, and bathtub or shower. (c) #idth. 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 ~ay be provided in order to alleviate an overcrowded condition. LIGHT AND VENTILATION Sec. 504. (a) Natural Light and Ventilation. All 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 rooms with a minimum of 10 square feet. Ail bathrooms, water closet compartments, laundry rooms and similar rooms shall be provided with natural ventilation by means of openable exterior openings with an area not less than one-twentieth of the floor area of such rooms with a minimum of I 1/2 square feet. All guest rooms, dormitories and habitable rooms within a dwelling unit shall be provided with natural ventilation by means of openable exterior openings with an area of not less than one-twentieth of the floor area of such rooms with a minimum of 5 square feet. (b) Origin of Light and Ventilation. Required exterior openings for natural light and ventilation shall open directly onto a street or public alley or a yard or court located on the same lot as the building. -6- EXCEPTION: Required windows may open into a roofed porch where the porch: 1. Abuts & street, yard, or ~ourt; and 2. Has a ceiling height of not less than ? feet; and 3. Has the longer aide of at least 65 percent open and unobstructed. A required window in a service room may open into a vent shaft which is open and unobstructed to the sky and not leas than 4 feet in least dimension. No vent abaft shall extend through Bore than two stories. For the purpose of determining ligh[ and ventilation requirements, any room Bay be considered as a portion of an adjoining room when one-half of the area of the co~non 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 rooms, and in public corridors. One-fifth of the air supply shall be taken from the outside. In bathrooms, water closet compartments, laundry rooms, and similar rooms a mechanical ventilation system connected directly to the outside, capable of providing five air changes per hour, shall be provided. (d) Hallways. All public hallways, stairs, and other exitways 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. (b) Hotels. 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 from a public hallway. Additional water closets, lavatories, and baths shall be provided on each floor for each sex at the rate of one for every additional guests, or fractional number thereof in excess of 10. Such facilities shall be clearly marked for °Men' and UWomen'. (c) Kitchen. Each dwelling unit shall be provided with a kitchen. Every kitchen shall be provided with a kitchen sink. No wooden sink or sink of similarly absorbent material shall be permitted. (d) Fixtures. All 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. -7- All plumbing fixtures shall be of an approved glazed earthenware type or of a similarly nonabsorbant material. · (e) Mater Closet Compartments, Malls and floors of water closet compartments except in dwellings shall be finished in accordance with Section 1711 of the Building Code. In all occupancies, accessories such as grab bars, tovel bars, paper dispensers and soap dishes, etc., provided on or within walls, shall be installed and sealed to protect structural elements from moisture. (f) Room Separations. Every water closet, bathtub, or sho~er required by these PRS shall be installed in a room which will afford privacy to the occupant. A room in which a water closet is located shall be separated from food preparation or storage rooms by a tight-fitting door. (g) Installation and Maintenance. All sanitary facilities shall be installed and maintained in safe and sanitary condition and in accordance with all applicable laws. Chapter 6 STRUCTURAL REOUIREMENTS Sec. 601. (a) General. Buildings or structures may be of any type of construction permitted by the Building Code. Roofs, floors, walls, foundations, and all other structural components of buildings shall be capable of resisting any and all forces and loads to which they may be subjected. Ail structural elements shall be proportioned and joined in accordance with the stress 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. (b) Shelter. Every building shall be weather protected so as to provide shelter for the occupants against the elements and to exclude dampness. (c) Protection of Materials. All wood shall be protected against termite damage and decay as provided in the Building Code. Chapter 7 HEATING AND VENTILATION Sec. 701. (a) Heating. Zvery dwelling unit and guest room shall be provided with heating facilities capable of maintaining a room temperature of 70OF. at a point 3 feet above 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. -8- (b) Electrical ~qutpeent. All electrical eqotl~ent, wiring, and appliances shall be lns~lled and ~ln~tned in a ~e manner in accordance with ~11 a~llcable h~. All el~~al ~ul~ent shll be of an a~ro~ ~efe ~ere Is electrical ~er available wi~in 300 feet ~y building, such building o~ll be ~ec~d ~ such el~lcal ~. Every h~it~le r~ shall ~n~in 8't least t~ sullied electric ~~ience or one such ~nventence ~tlet ~d ~e s~lied elec~lc light fixture. Every water closet ~ar~nt, h~E~, hundry r~m, run,ce r~, ~d P~lic ~11 ~n~im at least one s~lt~ el~ic light ~lxtu~e. (c) Ventilati~. Ventihti~ for r~ ~d areas ~d for fuel-burning a~liances shall ~ p~ided as r~uired In ~e ~ch~ical ~e and In ~is ~e. ~e ~hanical ventihti~ is provided In lieu of ~e natural ventlhtion r~uired by Section 504 of ~is ~e, such Mch~ical ventllati~ system shall mintained In o~ratt~ duri~ ~e ~c~~ of any building or porti~ ~ereof. Chapter 8 ~XITS Sec-. 801. ~very dwelling unit or guest room shall have access directly to the outside or to a public corridor. All buildings or portions thereof shall be provided with exits, exitways, 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 for emergency egress or rescue. The units shall be operable from the inside to provide a full clear opening without the use of separate tools. All egress or rescue windows from sleeping roons shall have a minimum net clear opening of 5.7 square feet. The minimum net clear opening height dimension shall be 24 inches. The minimum net clear opening width dimension shall be 20 inches. Nhere windows are provided as a Mans of egress or rescue they shall have a finished sill height not ~ore than 44 inches above the floor. Chapter FIRE PROTECTION Sec. 901. itll buildings or portions thereof shall be provided with the degree of fire-resistive construction as required by the Building Code, for the · ppropriate occupancy, type of construction, and location on property or in fire sons! and shall be provided with the appropriate fire-extinguishing systems or equipsmnt required by Chapter 38 of the Building Code. -9- Chapter 10 SUBSTANDARD BUILDINGS DEFINITION Sec. 1001. (a) ~eneral. Any building or portion thereof including any dwelling unit, guest room or suite of rooms, or the premises on ~hich the sane is ~ocated, in which there exists any of the following listed conditions to an extent that endangers the life, linb, health, property, 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 the 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 fixtures in a dwelling unit. 6. Lack of adequate heating facilities. 7. Lack of or improper operation of required ventilating equipment. 8. Lack of minimum a~ounts of natural light and ventilation required by these PRS. 9. Room and space dimensions less than required by these PRS. 10. Lack of required electrical lighting. 11. Dampness of habitable rooms. 11. Infestation of insects, vermin or rodents as determined by the Housing and Con~unity Development Nanager. 13. ~eneral dilapidation or improper ~aintenance. 14. Lack of connection to required sewage disposal system. 15. Lack of adequate garbage and rubbish storage and re~oval facilities as determined by the Housing and Con~aunity Development Nanager. -10- (c) Structural hzards. Structural hazards shall include but not be limited to the following: 1. Deteriorated or inadequate foundations. 2. Defective or deteriorated flooring or floor s~pports. 3. Flooring or floor support of insufficient size to carry imposed loads and safety. 4. #e~bers of walls, partitions, or other vertical supports that · plit, lean, list or buckle due to defective ~aterial or deterioration. 5. Me~bers of walls, partitions, or other vertical supports that are of insufficient size to carry le~osed loads with safety. 6. Kembers of ceilings, roofs, ceiling and roof supports or other horizontal members which sag, split, or buckle due to defective meterial or deterioration. Kembers of ceilings, roofs, ceiling and roof supports, or other horizontal members that are of insufficient size to carry imposed loads with safety. 8. Fireplaces or chimneys which list, bulge, or settle, due to defective ~aterial or deterioration. 9. FirepLaces or chimneys which are of insufficient size or strength to carry imposed loads with safety. 10. Dangerous or deteriorating fences. (d) Nuisance. Any nuisance as defined in these PRS. (e) ~aza~dous #iring. All wiring except that which conformed with all applicable laws in effeCt at the time of installation and which has been maintained in good condition and is being used in a safe manner. (f) hzafdous Plmabing. All plumbing except that which conformed with all applicable Laws in effect at the tf~e of installation and which has been maintained in good condition and which is free of cross connections and siphonage between fixtures. (g) Hazardous Kechanical Bquipment. All Bechanical equipment, including vents, except that which conformed with all applicable lays in effect at the t~Jne Of installation and which has been maintained in good and safe condition. (h) Faul~ ~ather Protection, which s~ll include but Mt ~ limited to the ~llowi~: l. Deteriorated, cru~bling, or loose plaster. -11- 2. Deteriorated or ineffective water proofing of exterior walls, roof, foundations, or floors, including broken windows or doors. 3. Defective or Luck of ~eather protection for exterior wall coverings, including lack of paint, or weathering due to lack of paint or other approved protective covering. 4. Broken, rotted, split, or buckled exterior wall coverings or roof coverings. (i) Fire Hazard. Any building or portion thereof, device, apparatus, equipment, 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; All materials of construction except those which are specifically allowed or approved by these PHS 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. (1) Inadequate Exits. All buildings or portions thereof not provided with adequate exit facilities as required by these PRS except those buildings or portions thereof whose exit facilities conformed with all applicable laws at the time of thei£ 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 unsafe condition exists through lack of or improper location of exits, additional exits may be required to be 'installed. (n) Inadequate Fire-protection or Fire-fighting Equipment. All buildings or portions thereof which are not provided with the fire-resistive construction or fire-extinguishing systems or equipment required by these PHS, 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 systems or equipment have been adequately maintained and improved in relation to any increase in ocucpant load, alteration or addition, or any change in occupancy. (o) Improper Occupancy. All buildings or portions thereof occupied for living, sleeping, cooking or dining purposes which are not designed or intended to be used for such occupancies. -12- Chapter 11 ENERGY CONSE~TION Sec. 1101. (a) Energy P-fficiency Performance Requirement. Appropriate energy-conserving improvements such as insulation, caulking, and weather-proofing ~ust be accomplished by the o~ner as part of the rehabilitation under this part, provided that these improvements are determined to be cost effective over a period of 15 years. (b) Energy Conservation requirements in New Building Construction shall comply with Chapter 53, Appendix of the U.B.C. Chapter 12 REQUI~S FOR PHYSICALLY HANDICAPPED Sec. 1201. (a) Units acco~-nedating 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. BL: decDB5:19 -13- 4/19/83