HomeMy WebLinkAboutCC 9 REHAB PVT PROP'S 02-03-86DATE:
FEBRUARY 3, 1986
CONSENT CALENDAR
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Inter Corn
TO:
FROM:
SUBJECT:
HONORABLE MAYOR AND CITY COUNCIL
COI~UNITY DEVELOPMENT DEPARTHENT
PROPOSED CONTRACT FOR REHABILITATION OF PRIVATE PROPERTIES
RECOI~ENDAT~0N:
Approve the contract as submitted.
SUI~ARY:
Enclosed is the proposed contract for the HCD 11th year which implements the
Rehabilitation of Private Properties portion of our application. The $50,000
will be used to rehabilitate owner occupied dwellings, apartments and mobile
homes in the city's target areas.
The City Attorney has reviewed the contract and finds it satisfactory.
MAR~ AN)~ CHAMBERLAIN,
Associate Planner
MAC: do
enc: contract
Contract No. C40272
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TITLE OF PROJECT:
19
COUNTY'OF ORANGE
ENVIRONMENTAL MANAGEMENT AGENCY
HOUSING AND COMMUNITY DEVELOPMENT CONTRACT
Tustin - Rehabilitation of Private Properties (K15.1)
MEMORANDUM OF CONTRACT entered into this day of
BY AND BETWEEN
and
CITY OF TUSTIN, a municipal corporation,
hereinafter referred to as CITY.
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.
w~REAS, COUIFfY 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,
and
WHEREAS, the CITY has submitted to the COUNTY an application for funding of
a project hereinafter described, and
~REAS, the COUNTY has entered into separate agreement dated July 30, 1985,
with the U.S. Department of Housing and Urban Development (hereinafter designated as
HUD) to fund said project under the Housing and Community Development Act of 1974
(Public Law 93-383), as amended (hereinafter referred to as ACT).
W~Et~EAS, the COUNTY has established a Home Improvement Program and has
entered into individual agreements to administer said program with HUD, California
State Department of Housing and Community Development and a local lending
institution(s), and
WHEItEAS, the CITY has requested COUNTY to implement the CITY's Housing and
Community Development Project entitled Housing Rehabilitation and funded from Block
Grant funds (K15.1) for ($50,000.00).
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Contract No. C40272
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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
Hoard 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 (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 Fifty Thousand Dollars and no/100 ($50,000.00).
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, 1986. 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
CITY.
4. The CITY agrees to provide appropriate office space to the COUNTY, as needed
III
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Contract NO. C40272
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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
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. Ail 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
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
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Contract NO. C40272
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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
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.
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Contract No. C40272
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IN WITNESS W~EREOF, 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
City Clerk
Mayor
APPROVED
Date , ~
COUNTY OF a ~litical su~ivision
of the State of California
Dated:
By
Chairman of the Board of Supervisors
COUNTY
SIGNED AND CERTIFIED THAT A COPY OF
THIS DOCOMENT HAS BEEN DELIVERED TO
THE CHAIP/~tN OF TSZ BOARD.
LINDA D. ROBERTS
Clerk of the Board of Supervisors
of Orange County, California
APPROVED AS TO FORM:
ADRIAN KUYPER, COUNTY COUNSEL
ORANGE COUNTY, CALIFOI~NIA
By
LM: bjgDHS-3.7
11/07/85
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F '~ibit "B" - C40272
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TUSTIN
ENVIRONMENTAL MANAGEMENT AGENCY
HOME IMPROVEMENT PROGRAM
POLICY MANUAL
(Revised)
COUNTY OF ORANGE
ENVIRONMENTAL MANAGEMENT AG~.NCY
BOUSING/CO~I~UNITY DEVELOPMENT PROGRAM OFFICE
1200 N. Main Street, Suite 600
Santa Aha, California 92701
Approved by the Board of Supervisors
September 18, 1984
HOME IMPROVEMENT PROGRAM POLICY MANUAL
Table of Contents
Pac~e
General Provisions
Section 1
Section 2
Section 3
Section 4
Section 5
LOW INTEREST LOANS
1.01
1.02
1.03
1.04
1.05
1.06
1.07
1.08
1.09
1.10
Low Interest Loans
Eligibility Requirements
Rental Property
Mobilehome
Applicant's Income
FHA Title I Insurance
Eligible Improvements
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
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SPOT
3.01
3.02
Deferred Payment Loans 15
Approval of Deferred Payment Loans 16
Eligibility Requirements 16
Applicant's Income 17
Eligible Improvements and Costs 17
Temporary Relocation Assistance 19
PrOCeSsing Deferred Payment Loans 19
RE~%BILITATION LOANS
Spot Rehabilitation Loans 20
processing of Spot Rehabilitation Loans 20
REHABILITATION GRANTS
4.01 Rehabilitation Grants 20
4.02 Processing Rehabilitation Grants 21
REBATE PROGRAM
5.01 General 22
5.02 Applicant Eligibility 22
5.03 Eligible Repairs 22
5.04 Workmanship 23
APPENDIX A PROPERTY REHABILITATION STANDARDS 24
~OME IMPROVEMENT PROGRAM
General PrO~ision~
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 Comunity Development Program Office (H/CD) and
approved by the U.S. Department of Housing and Urban Development
(HUD). The primary objectives are to upgrade and preserve viable
urban con,unities to principally benefit persons of iow/moderate
income.
B. Distribution of Funds
The rehabilitation and preservation of housing is one of the key
eligible activities permitted and encouraged by the CDBG Act. The
County Board of Supervisors, 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 '
progr~m~.
C. Fundin~ Sources
Major funding comes from the Housing and Community Development Block
Grant Act (CI~G) 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 stat~ programs
as available, plus private funds which may result from leveraging.
When necessary, one or more funding sources may be used to cover the
entire cost of rehabilitating a particular housing unit(s).
D. Applicability of Other Federal/State Regulations
While all rehabilitation loans are subject to the requirements of
this manual, there are special provisions and limitations on the
making of rehabilitation loans depending on the type of project or
program area. Consequently, in addition to the provisions of this
Policy Manual, rehabilitation loans made on property under t. his
program are subject to the rules and regulations of the CDBG Act of
1974 as amended, by HUD, and regulations governing the use of other
state or federal funds which may become available.
H. Financial Institutions
Upon recomendation by H/CD Program Office, the Hoard of Supervisors
may approve contracts with one or more financial institutions to
process loans/grants for the rehabilitati~ of single-family and
m~lti-f~m~ly units.
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J. CDBG Act of 1974 - Authorization
The following sections outline the guidelines and policy procedures
for the County's Home Improvement Program. Section 570.202 ia the
specific provision of the CD~G Act of 1974, as amended, which authorizes
the County to make CDBG funds available for home improvement purposes.
Whenever =he use of funds and/or activity under this program is in
doubt, Section 570.202 shall prevail.
THIS POLICY M~u~L SUPF_~EDES THE HO~ II~t~OVEM~ Pl~O~tqM POLICY
AND ~%LL ~ AND x~v~SI(~S PR~vi~,-X A~u BY ~-~
~1%RD OF SUPE~FISORS ~ MAX 10w 1983.
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SECTION 1. LOW I~-£'~.REST LOANS
Section
A.
1.01 Low Interest Loans
The County makes available low interest loans to qualified
applicants through the Home Improvement Programs and financial
institutions approved by the Board of Supervisors.
B. Approval
A rehabilitation loan may be approved only when the following
conditions exist =
An executed Grant Agreement exists between the County of
Orange and ~UU under Title I of the CI~G Act of 1974, as
Executed agreement(s) exist between a financial
institution(s) and the County of Orange to provide
rehabilitation loans to property owners,
3. Agreements have been executed with other federal and/or
state agencies to make funds available to the County.
C. Notification of Loan Decision
Applicants will be notified of loan decision by the contracting
financial institution after applications have been accepted and
processed by H/CD. The H/CD office will retain in its files the
copies of notification to the applicant of loan decision by the
financial institution. No rehabilitation work is to be
performed prior to this notice by the financial institution and
the County's Notice to Proceed. In case of emergency health and
safety conditions or special circumstances the H/CD Manager may
authorize work to proceed prior to notification from the
financial institution.
D. Restrictions on N,,mher of Loans
The number of low interest or deferred payment rehabilitation
loans which may be made to any property owner under the Home
Improvement Program is one (1) unless waived in writing by the
H/CD Manager. Requests for a waiver of this restriction shall
be made by the loan applicant, in writing, to the Manager.
Requests to the Manager must be accompanied by the
recommendation of the Housing Program Section Chief. If a
request for a waiver of this one (1) loan restriction is denied
by the Manager, loan applicant may appeal the decision to the
Director of F/dA.
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limitation shall not apply to investor-owners participating
in the Rental Rehabilitation Program. The County H/CD
Program has identified by formal application to HUD specific
target areas for concentrated use of Housing and Comunity
Development funds. Applicants, who live within the
designated target areas and whose incomes are at or below
~hese limits are eligible to apply for three (3) percent
loans.
Interest rates for Spot Rehabilitation loans made outside of
an approved target area shall also be three (3) percent for
homeowners who meet the 80 percent median income criteria.
For luther detail, see Section 3.01 on Spot Rehabilitation.
The H/CD Manager may 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/M income
tenants, Six (6) and Nine (9) Percent Interest Loans may be
made to qualified rental property owners on the condition
that these owners agree to comply with the requirements of
Section 1.03 of this Policy Manual.
D. Loan Amount
The maximum for a loan made shall be $45,000.00 for structures
of one to three units. For four or more units the maximum loan
shall not exceed $15,000 per unit. A mobilehome rehabilitation
loan may not exceed $10,000 unless waived in writing by the H/CD
Manager.
Refinance
AS allowed by Section 570.202(c) (2) (ii) (B) of the Housing and
Comunity Development regulations, refinancing may be permitted
if it is necessary to complete the rehabilitation work for
iow/moderate income 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 Comunity
Development and Housing Plan." If refinancing is over 20
percent of the clients indebtedness, Housing Program Section
Chief must obtain Manager's approval.
The loan applicant is subject to the same loan limits described
in D above. For refinancing delinquent loans see Section 1.09
(13).
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Section 1.04' MO~ILEHOMES
In order to provide mobilehome owner-occupants with a financing
mechanism to rehabilitate ~heir units, the County has established
this program. The program provides for loans up to $10,000 and
grants up to $5,000. Where conditions warrant, the Manager may
increase the grant amount, not to exceed twenty percent for imminent
hazard to the health and safety of the applicant or the community.
For the purPOse of Mobile Home Rehabilitation, all mobile homes are
considered real properties.
Besides the requirement for income eligibility, the following
conditions must be satisfied before a loan can be made to a
mobilehome owner:
A. Owner must show Proof of ownership either by:
Possessing a State of California of Housing and Community
Development Certificate of Title, Mobilehome, or
2. A California Department of Motor Vehicles Ownership
Certificate (known as a pink slip).
3. Other documenHs as may be required by HUD or the State H/CD
Department.
B. The remaining economic life of the mobilehome must be at least
five (5) years or more.
C. Mobilehome must be peramantely anchored to the ground to resist
wind and seismic forces.
Section 1.05 A~licant'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 iow/moderate income
or an investor-owner. Low/moderate income is 80 percent of the
county's median income, as defined and periodically updated by
HUD.
B. Income Components
The following is a list of components that comprise the total
income allowed an applicant for a rehabilitation loan. The
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Medical expenses for a major illness or chronic condition
which are not c~vere~ by insurance. Supporting
documentation must he submitted to H/CD as evidence of a
major permanent illness or chronic condition.
Unusual expenses or amounts paid for the care of minors
under 18 years of age or for the care of disabled or
handicapped family household members, hut only where such
care is necessary to enable a family member to be gainfully
employed.
D. Exclusions from Income
The following income is excluded in determining income
eligibility:
1. The income of a child 18 years of age or younger;
2. Child support, inoluding social security or pension funds,
and income from a trust fund established for the child;
3. The income of a child who is a full-time student living at
home, and is 21 years or younger;
0
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 I Insurance
Whenever possible, loans will be processed by the financial
institution for FHA Title I Insurance.
Section
A.
Be
1.07 Eligible Im?rovements
General
This section sets forth, but does not limit, examples of
eligible and mandatory improvements under the rehabilitation
program as well as ineligible improvements. When the
eligibility of a proposed improvement is in question, Section
570.202 of the CDBG Act of 1974, as amended, is the final
authority.
Eligible 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 B/CD Senior Building
Inspector.
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B. Conditions Requiring Temporary Relocation
If any of the following causes or conditions occur as a result
of the Home Improvement Program, it may be necessary for the
persons or families to relocate to another dwelling on a
temporary basis:
Water system is shut off for any extended period of days for
plumbing repairs.
ElectriCal service becomes non-operable while making repairs
to wiring.
Repairs which create dust and other conditions which would
aggravate allergic condition of occupant(s).
Structure is to be fumigated for termite control and
infestation.
Hazardous living conditions which result from structural
changes during construction.
Sanitation facilities; e.g., tub, wash basin, toilet become
non-operable.
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 ~welling unit in order to receive payment.
D. Amount of Assistance
Benefits will be made available for a period determined by the
Manager but not to exceed the term of the rehabilitation
contract.
County will pay the cost of the temporary acco~odations up to a
daily maximum equal to the Housing Authority's rent limitations
prorated on a daily basis.
E. procedures for Securing Temporary Relocation Assistance
1. Contractor or Rehabilitation Cost Specialist must submit
letter to the H/CD program Office requesting vacating of
unit and specifying amount of time unit must remain vacant.
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Verify program eligibility of applicant.
Verify that applicant is owner of property to be
improved.
Verify applicant's income and employment. The income
~ax returns for the previous two years will be obtained
by H/CD staff.
Complete credit investigation.
e. Advise homeowner in writing of approval/disapproval.
When appropriate, items (a) through (e) may be required to
be performed by ~_he County prior to submittal to funding
8ourcee.
Termite Inspection
A free termite inspection will be arranged by the County for
the homeowner or property owner approved for a
rehabilitation loan. The termite company will submit the
inspection results to the rehabilitation specialist for
inclusion in the work write-up cost estimate.
5. Work Write-up/Cost Estimate
A work write-up/cost estimate will be compiled based on the
initial inspection and the termite inspection report.
Homeowner will be given a copy of the work write-up for
approval and will be advised of estimate of loan necessary
to ¢o~lete 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
~wners are responsible for the selection of qualified
contractors for the job). "Qualified" means those
contractors who are licensed by the State of California,
who have applied to participate in the County's Home
Improvement Program and who have received written
approval of their participation in the program from
H/CD. All bids must be returned within 20 calendar days
unless otherwise specified. Bids will be opened in the
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Owner-Builder Agreement for homeowners who are approved
to do their own rehabilitation work o= act as his/her
own contractor.
In the event that home~ener wishes to provide improvements
over and above eligible work provide~ for, or perform a
portion(s) of the work her/himself, the above contract(s) or
agreement(s) shall reflect the total cost of work to be
done, 'what the prime and/or subcontractor's responsibilities
are and work homeowner will perform. Evidence of
availabili~y of the additional funds required must be
verified and available prior to funding of loan.
8. Executed Contracts
H/CD may forward copy of final work w~ite-up to the
appropriate financial institution or appropriate funding
agency with request for loan documents. Financial
institution(s) will prepare and forward loan documents at
interest rate previously determined by H/CD and advise H/CD
of interest subsidy due, if appropriate. Homeowner's
payments will be in'equal monthly installments, the first
installment payment due 30 calendar days from note date
depending on financial institution policy. B/CD obtains
borrower's signature on loan documents and returns all
documents to the financial institution(s), if appropriate.
9. Loan Subsidy
Loan subsidies will be governed by contracts with financial
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. Smoke Detector (s)
Smoke detector(s) will. be required in all rehabilitated
residential structures.
12. Loan Disbursement
Financial institution(s) may forward to H/CD loan
proceeds in a form prescribed by the agency or financial
institution and may disburse progress payments upon
request of B/CD s~aff. Disbursements to clients will be
·ade only after completion of inspection by
rehabilitation specialist and verification of billings
by H/CD. proceeds will be disbursed by one of the
following metho(]s:
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u~on recommendation of Housing Program Section Chief, in
order to protect County's interest, may decide to cure the
default by refinancing existing loan to a UPL if client
qualifies.
14. Appeal
A loan application which is disapproved may be resubmitted
for a DPL or Grant described in Section 2 and Section 3
below. Subsequent rejection may be appealed under Section
2.0:~.
Section 1.10 Truth in Lending Requirements
H/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 zero percent (0) interest loan.
DPL's are intended to assis~ iow/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 DP~ may not exceed loan limits of $45,000. Clients 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/moderate income and qualified to assume
UPL, or if the DPL should be repaid. All assumptions of DPL's shall
be approved by the H/CD Manager.
Funding for the DPL is through ~he H/CD Program and/or any other
federal or state programs or appropriate lending institutions under
contractual agreement wi~h 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/moderate income tenants, a DPL may be made to
investor owners who participate in the Rental Rehabilitation
PrO, rams without regard to income. The D~L will be due and payable
in fifteen (15) years or at time of transfer of title, whichever
comes first.
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Section
A.
2.05 Eligible Improvements and Costs
General
This section sets forth examples of improvements and costs to be
financed with a DPL.
Eligible Improvements and'Costs
A DPL may be used to finance the cost of repairs and
improvements to comply with the property Rehabilitation
standards approved by the Board of Supervisors as amende~
(Appendix A) and incipient.violations of these standards. DPL
funds may also be used to finance the cost and installation of
energy conservation materials. DPL's may also be used to remove
handicap barriers and to provide handicap accessibility.
HaZardous conditions which are a direct threat to the health,
safety and general welfare of occupants will be priority items
C. Ineligible Improvements
DPL may not provide for:
1. New construction qr expansion of the size of a structure,
except in Rental Rehabilitation pro, rams or where
overcrowding warrants.
2. Matarials, fixtures or equipment of a t~pe or quality, w~ich
unreasonably exceeds that customarily used in properties of
the same general type as the property to be rehabilitated.
De
Insurance and property Taxes
The client shall maintain 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 allowed for elderly clients.
E. program Fees
Recording fees
The cost' of recording the Deed of Trust and other pertinent
documents shall be waived as per Government Code, Section
6103.
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Section 2.06 Temporary Relocation Assistance
Temporary relocation benefits that are available to applicant
receiving a DPL are-those described in Section 1.08 of this manual.
Section 2.07 Processin~ Deferred Payment Loans
A. Processing Procedures
The processing of a DPL shall be the same as that of a
subsidized, low interest loan as noted in Section 1.09 of this
Policy Manual in addition to the following:
1. Determination of Preliminary Eligibility
Rehabilitation staff will develop necessary documentation to
make determination of applicant eligibility for a DPL.
2. Obtain Preliminary Title Report, credit report, appraisal,
if needed, and verify income.
3. Determination of Final Eligibility.
After receiving preliminary title report and credit report,
staff will make a final recomendation regarding applicant's
eligibility for a DPL. Recomendation will be submitted to
H/CD Manager or his designee for approval.
4. Execution of Documents
If eligible, applicant will execute Promissory Note and Deed
of Trust. Additionally, applicant will execute DPL property
owner agreement. Once all documents are executed, Deed of
Trust will be recorded, Promissory Note and Deed of Trust
will be held by H/CD Accounting and H/CD will request title
insurance policy covering amount of loan from title company.
5. Notification of Loan Amount
A signed DPL Approval Form will be forwarded to H/CD
Accounting 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
manual, apply to all DPL's.
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Section 4.02 processin~ Rehabilitation Grants
A. A rehabilitation grant ~ay be a~roved subject to the same
provisions as set forth in Section 2 except as noted below:
Applicant Eligibility Requirements
A~licant must execute Property Owner Grant Agreement which
provides that the owner returns 100 percent of the grant to
County upon sale or transfer of title within one year of
agreement execution and 50 percent of property upon sale or
transfer of title transferred between one and two years
after the execution of the agreement.
A rehabilitation grant may be use~ to finance the cost of
repairs and ~provements to com~ly 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 of energy conservation materials. The maximum
amount of a rehabilitation grant may not exceed the
following=
(a) $8,000.00 for conventional single family units and
$5,000 for ~obilehomes.
(b) ~here conditions warrant, the Manager may increase the
grant a~ount, not to exceed twenty percent (of the
above) for imminent hazard to the health and safety of
the applicant or the co,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/CD Program Office may provide small, minor
repair/maintenance, rehabilitation, mini-grants to qualified
residents of a low/mo~erate income neighborhood. Under this
mini-grant program, the above resale restriction of 4.02 A (1)
will be waived.
SECTION 5. REBATE PROGRAM
Section 5.01 Rebate Program
5.01 General
The County provides limited funding to provide rebates for previously
approved home repairs which are prepaid by the owner and verified by
H/CD. The rebates are made available for a minimum of $500.00 and a
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Appendix A
PROPEI~I'Y ~ABILITATION STANDARDS
FOR
RESIDENTIAL PROPERTIES
CO~-NTY OF ORANGE
ENVIRONMENTAL MARA~-MENT AGENCY
BOUSING/CO~JNITY DEVELOPMENT DIVISION
April 7, 1983
INTRODUCTION
C~APTER 1
C~APTER 2
~PTER 4
CHAPTER $
C~APTER 6
CHAPTER 7
CHAPTER 8
CHAPTER 9
~PTER 10
~/~TER 11
(~;%PTE R 12
~%BLE OF CONTENTS
TITLE AND SCOPE
ENFORC~.~ENT
PERMITS AND INSPECTIONS
DEFINITIONS
SPACE AND OCCUPANCY
STRUCTURAL P, EQUIREMENTS
MECHANICAL REQUIREMENTS
EXITS
FIRE PROTECTION
SUBSTANDARD BUILDINGS
ENERGY CONSERVATION
REQUIREMENTS FOR PHYSICAT.~.Y HANDICAPPED
Page
i
1
1
3
4
6
9
10
10
12
12
INTRODUCTION
The "Property Rehabilitation Standards" (PRS) as denoted herein have been estab-
lished after considering ~ny codes and suggestions by the Federal Housing
Administration. These PRS are the Uniform Housing Code, 1979 Edition, except
for some minor revisions and additions, and shall be the guide for the County in
implementing its Home Improvement Program.
These PRS 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-auu Minimum Property Standards are more restrictive, those standards
shall apply. It is recognized that the PBS 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 more
effective manner and a longer lasting repair be made to structures. For
example, in areas where t_here 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
TITLE AND SC~PE
TITLE
Sec. 101.
herein as PRS.
These Property Rebilitmtion Standards are to be referred to
PU-~POSE
Sec. 102. The purpose of these PRS is to provide minimum standards to
safeguard life, limb, health, property, safety, and welfare of the general
public and the owners and occupants of residential buildings within jurisdiction
of the County of Orange and those cities whose rehabilitation programs are
ac%ministered by the County of Orange.
SCOPE
Sec. 103. (a) Application. The provisions of these PP~ shall apply to all
buildings or portions thereof used, or designed, or intended to be used, for
human habitation. Such occupancies in existing buildings may be continued as
provided in Section 104 (G) of the Building Code, except such structures as are
found to be substandard as defined in these PRS.
Where any building or portion thereof is used or intended to be used as a
combination apartment house-hotel, the provisions of these PRS shall apply to
the separate portions as if they were separate buildings.
Every rooming house or lodging house shall comply with all the requirements
of these PBS 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 moved into or within the
jurisdiction shall comply with the requirements in the Relocated Buildings Code
for new buildings and structures.
Chapter 2
ENFORCEMENT
Sec. 201. (a) Authority. The Housing and Community Development Manager is
hereby authorized and directed to administer and enforce all of the provisions
of these PBS.
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SUBSTANDARD BUILDINGS
Sec. 202. All buildings or portions thereof which are determined to be
substandard as defined in these PBS are hereby declared to be public nuisances
and shall be abated by repair, rehabilitation, demolition, or removal in
accordance with the procedure specified in Chapter 2, as amended
(Ordinance 3062).
Chapter 3
PERMITS AND INSPECTIONS
SeC. 301.' No person, firm, or corporation, shall erect, construct, enlarge,
alter, repair, move, improve, remove, convert, or demolish any building or
structure, or cause or permit 'the same to be done, without first obtaining a
separate building permit for each such building or structure from the Building
Official in the manner and according to the applicable conditions prescribed in
Chapter 3 of the Building Code and in Section 302 of Ordinance No. 3061.
SeC. 302. Whenever a building permit is required by Section 301 of these
PBS, 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. Ail buildings or structures within the scope of these PBS and all
construction or work for which a permit is required shall be subject to
inspection by the Housing and Community Development Manager and the Building
Official in accordance with and in the manner provided by these PBS and
SeCtions 305 and 306 of the Building Code.
Chapter 4
DEFINITIONS
Definitions
SeC. 401. For the purpose of these pRS, certain abbreviations, terms,
phrases, words, and their derivatives shall be construed as specified in the
Building Co~e.
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-
(b) Yards. Every yard shall be not less than 3 feet in width for one-story
and two-story buildings. For buildings more than two stories in height the
minimum width of the yard shall be increased at the rate of 1 foot for each
additional story. Where yards completely surround the building, the required
width may be reduced by 1 foot. For buildings exceeding 14 stories in height,
the required width of yard shall be computed on the basis of 14 stories.
(c) Courts. Every court shall be not less than 3 feet in width. Courts
having windows opening on the opposite sides, shall be not less than 6 feet in
width. Courts bounded on three or more sides by the walls of the building shall
be not less than 10 feet in length unless bounded on one end by a street 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 dimensions shall be computed on the basis of
14 stories.
A~equate acess shall be provided to the bottom of all courts for cleaning
purposes. Every court more than two stories in height shall be provided with a
horizontal air intake at the bottom not less than 10 square feet in area and
leading to the exterior of the building unless 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 more 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.
RO(~ DIMENSIONS
Sec. 503. (a) Ceiling Heights. Habitable rooms or areas shall have a
ceiling height of not less than 7 feet 6 inches except as otherwise permitted in
this Section. Kitchens, halls, bathrooms, and toilet compartments may have a
ceiling height of not less than 7 feet measured to the lowest projection from the
ceiling. Where exposed beam ceiling members are spaced at less than 48 inches on
center, the ceiling height shall be measured to the bottom of these members.
Where exposed ceiling members are spaced at 48 inches or more on center, ceiling
height shall be measured to the bottom of the deck supported by these members
provided that the bottom of the members is not less than 7 feet above the floor.
If any room in a building has a sloping ceiling, the prescribed ceiling
height for the room is required in only one-half the area thereof. No portion of
the room measuring /ess 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 two-thirds the area thereof, but in no case shall the height of the furred
ceiling be less than 7 feet.
(b) Floor Area. Every dwelling unit shall have at least one room which
shall have not less than 150 square feet of floor area. Other habitable rooms
except kitchens shall have an area of not less than 70 square feet. Where more
than ~wo persons occupy a room used for sleeping purposes the required floor area
-5-
EXCEPTION: Required windows may open into a roofed ~orch where ~he ~orch:
1. Abuts a street, yard, or court; and
2. Has a ceiling height of not lees than 7 feet; and
3. Has the longer aide of at leaet 65 percent open and unobstructed.
A required window in a service room may open into a vent abaft which is open
and unobstructed to the sky and not less than 4 feet in least dimension. No vent
shaft shall extend ~hrough more than two stories.
For the purpose of determining light and ventilation requirements, any room
may be considered as a portion of an adjoining room when one-half of the area of
the common 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 he 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. Ail 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, ~here 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 "Women".
(c) Kitchen. Each dwelling unit shall he provided with a kitchen.
kitchen shall be provided with a kitchen sink. No wooden sink or sink of
similarly absorbent material shall be permitted.
Every
(d) Fixtures. Ail plumbing fixtures shall be connected to a sanitary sewer
or to an approved private sewage disposal eystem. 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-
(b) Electrical Equipment. Ail electrical equipment, wiring, and appliances
shall be installed and maintained in a safe manner in accordance with all
applicable laws. Ail electrical e~uipment shall be of an approved type.
Where there is electrical power available within 300 feet of the premises of
any building, such'building shall be connected to such electrical power. Every
habitable room shall contain at least two supplied electric convenience outlets
or one such convenience outlet and one supplied electric light fixture. Every
water closet compartment, bathroom, laundry room, furnace room, and public hallway
shall ~ontain at least one supplied electric light fixture.
(c) Ventilation. Ventilation for rooms and areas and for fuel-burning
appliances shall be provided as required in the Mechanical Code and in this Code.
Where mechanical ventilation is provided in lieu of the natural ventilation
required bY Section 504 of this Code, such mechanical ventilating system shall be
maintained in operation during the occupancy of any building or portion thereof.
Chapter 8
EXITS
GENERAL
Sec. 801. Every dwelling unit or guest room shall have access directly to
the outside or to a public corridor. Ail 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 rooms 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. Where windows are provided as a means of egress or rescue they shall
have a finished sill height not more than 44 inches above the floor.
Chapter 9
FIRE PROTECTION
Sec. 901. Ail buildings or portions thereof shall be provided with the
degree of fire-resistive construction as required by the Building Code, for the
appropriate occupancy, type of construction, and location on property or in fire
zone; and shall be provided with the appropriate fire-extinguishing systems or
equipment required by Chapter 38 of the Building Co~e.
-9-
(c) Structural Hazards. Structural hazards shall include but not be
limited to ~/~e following:
1. Deteriorated or inadequate foundations.
2. Defective or deteriorated flooring or floor supports.
3. Flooring or floor support of insufficient size to carry imposed
loads and safety.
4. Members of walls, partitions, or other vertical supports that
split, lean, list or buckle due to defective material or
deter iora tion.
.5. Members of walls, partitions, or other vertical supports that are
of insufficient size to carry imposed loads with safety.
6. Members of ceilings, roofs, ceiling and roof supports or other
horizontal members which sag, split, or buckle due to defective
material or deterioration.
7. Members 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 material 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) Hazardous Wiring. Ail 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) Hazardous Plumbing. Ail plumbing except that which conformed with all
applicable laws in effect at the time of installation and which has been
maintained in good condition and which is free of cross connections and siphonage
between fixtures.
(g) Hazardous M~chanical Equipment. Ail mechanical equipment, including
vents, except that which conformed with all applicable laws in effect at the time
of installation and which has been maintained in g~od and safe condition.
(h) Faulty Weather Protection, which shall include but not be limited to
the following:
1. Deteriorated, crumbling, or loose plaster.
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Chapter 11
ENERGY CONSERVATION
Sec. 1101. (a) Energy Efficiency Performance Requirement. Appropriate
energy-conserving im~rovements such as insulation, caulking, and weather-proofing
must be accomplished by the owner 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
co=ply with Chapter 53, Appendix of the U.B.C.
Chapter 12
REQUIREMENTS FOR PHYSICALLY HANDICAPPED
GENERAL
Sec. 1201. (a) Units accommodating physically handicapped occupants with
wheelchairs and other special equipment shall not contain architectural barriers
which impede access or use. Handrails and ramps shall be provided as '
appropriate.
BL:decDH5:19 -13-
4/19/83