HomeMy WebLinkAboutCC 8 HSNG REHAB 02-07-83DATE:
TO:
F ROM:
S UBJ ECT:
February 14, 1983
CONSENT CALENDAR
No. 8
2-7-83
Inter-Corn
Honorable Mayor & City Council Members
Community Development Department
Proposed Contract for Housing Rehabilitation, Housing & Community
Development Act of 1974 (HCD)
Enclosed is the proposed contract for the HCD Act which implements the
housing rehabilitation portion of our application. The County will
administer and implement our Housing Rehabilitation Project which will not
exceed $50,000.
The City Attorney has reviewed the contract and finds it satisfactory.
RECOI~NDED ACTION
Approve the contract as submitted.
MAC:ih
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TITLE OF PROJECT:
19 .
Contract No. C26886
COUNTY OF ORANGE
ENVIRONMENTAL MANAGEMENT AGENCY
HOUSING AND COMMUNITY DEVELOPMENT CONTRACT
Tustin: Rehabilitation of Private Properties (H15.1)
MEMORANDUM OF CONTRACT entered into this day of . ..,
BY AND BETWEEN
CITY OF TUSTIN a municipal corporation,
hereinafter referred to as CITY.
and
COUNTY OF ORANGE, a politicaI subdivision of
the State of California and recognized Urban
County under the Federal Housing and Com-
munity Development Act of 1974 (Public Law
94-383), as amended, hereinafter referred to
as COUNTY.
WHEREAS, COUNTY AND CITY previously entered into a Cooperation Agreement,
dated November 24, 1981, in which both parties agreed to cooperate.in the undertaking,.
or assist in the undertaking,.of community development and housing assistance activi-
ties, and
WHEREAS, the CITY has submitted to the COUNTY an application for funding of
a project hereinafter described, and
WHEREAS, the COUNTY has entered into separate agreement dated July 27, 1982
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 94-383) as amended, (hereinafter referred to as ACT), and
WHEREAS, 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,
and
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 (H15.1) for ($50,000.00).
Contract No. C26886
1 NOW, THEREFORE, IT IS MUTUALLY AGREED by and between the parties that the
2 following provisions listed as well as ali applicable Federal, State and County laws
3 and regulations including the attached SPECIAL PROVISIONS, identified as EXHIBIT "A",
4 are part of this Contract.
5 1. The COUNTY will implement the Housing Rehabilitation Project described
6 herein as project, to provide low-interest loans, deferred payment loans, or grants
7 for home improvement of privately owned properties primarily in the CITY's target
8 area and spot housing rehabilitation within the City's boundaries (see attached map
9 Exhibit "B"), in accordance with the COUNTY's Home Improvement Program (see
10 Exhibit "C" of this Contract) as approved and amended from time to time by the Board
11 of Supervisors. The project is to primarily benefit low- and moderate-income families.
12 2. The total project funds available for loans or loan subsidies and
13 administrative costs hereinafter provided for in Section 3 of this Contract will not
14 exceed $50,000.00 (Fifty Thousand Dollars and no/i00). It is agreed by all parties
18 that all funds shall be expended prior to December 31, 1983.
16 3. The CITY ~grees to pay administrative charges for costs incurred by
17 COUNTY staff which shall not exceed 20% of the total project funding amount stated
18 in Section 2 of this Contract.
19 4. The CITY agrees to advertise the program and to provide outreach efforts
20 in the community on an ongoing basis to promote loans or loan subsidies from available
21 funds. The CITY agrees to implement project for Community Development purposes as
22 defined by apPlicable HUD provisions to ensure maximum benefit of project to low- and
23 moderate-income persons. In the event that all funds for this project are not
24 expended by December 31, 1983, this Contract may be terminated at the discretion of the
25 COUNTY.
26 5. The CITY agrees to provide appropriate office space to the COUNTY, in-
27 cluding use of a desk and a telephone.
28 6. Whenever applicable, funds may also be used to administer the City's
Contract No. ¢26886
1 HUD 312 Program. Other funding sources once approved by the Board of Supervisors
2 for the Home Improvement program may be added to this agreement by mutual consent
8 of the Director of COUNTY's Environmental Management Agency and the CITY.
4 7. Neither COUNTY nor any officer nor employee thereof shall be responsible
5 for any damage or liability occurring by reason of any action or omission of CITY or
6 its agents, associates, contractors, subcontractors, materialmen, laborers, or any
7 other persons, firms, or corporations furnishing or supplying work service, materials,
8 or supplies in connection w/th CITY's performance of this Contract and from any and
9 all claims and losses accruing or resulting to any persons, firm or corporation for
10 personal injuries or property damage resulting from or as a consequence of, CITY's
11 performance of this Contract under or in connection with any work, authority or
12 jurisdiction delegated to CITY under this Contract. It is also understood and agreed
!8 that, pursuant'to California Government Code Section 895.4, CITY shall.fully indemnify,
14 defend and hol~ COUNTY harmless from any liability imPosed for injury (as defined by
18 California Government Code Section 810.8) occurring by reason of any action or omis-
16 sion of CITY under or in connection with any work, authority or jurisdiction delegated
17 to CITY under this Contract. CITY shall act in an independent capacity and not as
18 officers, employees or agents of COUNTY.
19 8. Neither CITY nor any officer nor employee thereof shall be responsible
20 for any damage or liability occurring by reason of any action or omission of COUNTY
21 under or in connection with any work, authority or jurisdiction not delegated to CITY
22 under the terms of this Contract. It is also understood and agreed that, pursuant to
23 California Government Code Section 895.4 COUNTY shall fully indemnify, defend and hold
24 CITY harmless from any liability imposed for injury (as defined by California Govern-
2,5 ment Code Section 810.8), occurring by reason of any action or omission of COUNTY under
26 or in connection with any work, authority or 3urisdiction not delegated by CITY under
27 this Contract.
28 9. In the event of CITY's failure to comply with the provisions of this
Contract No. C26886
1 Contract, COUNTY may withhold funds and/or allocate funds to another activity considered
by the COUNTY to be in compliance with the Act.
III
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III
$ III
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$ III
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1S III
III
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16 III
17 III
18 'III
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III
28 III
-4-
Contract No. C26886
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IN WITNESS THEREOF, CITY has caused this Contract to be executed by its Mayor
and attested by its Clerk and COUNTY has caused this Contract to be executed by the
Chairman of the Board of Supervisors and certified by its Clerk, 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 O~GE, a political subdivision
of .the State of CalifOrnia
Dated: ......... By
Chairman of the Board of Supervisors
County
SIGNED ~ CERTIFIED %fiAT A COPY OF
THIS DOCU~NT HAS BEEN DELIVERED TO
THE CHAIIL~ OF THE BO~RD.
Clerk of the Board of Supervisors
of Orange County, California
APPROVED AS T0 FORM:
ADRIAN KUYPER, COUNTY
ORANGE COUNTY, CALIFORNIA
PZ:decl172(22) -5-
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ExhibiL "A" *~ ¢O0~I'Y/CITY Con~ract
SPECIAL PRO¥IS IONS
Ao SectiOtl 3 - Co~pliance l~lth the Provision of Trainins Employment and
Business Opportunity
~e CI~ shall c~e or require ~o be inserted in f~l ia all con~rac~s
and subcontracts for vor~ financed in ~hole or par~ ~h fed~ral financial assis~ance
provided under ~hls ~nCrac~, ~he ~a~ion } cla~e se~ forth ia II C~R 13}.~0(b).
CITY rill pr~ide s~h copies of 21 ~R Par~ 13~ as ~y be necessary for ~he
~lon of par~ies Co contracts required co contain the said ~c~ion 3
Section 3 requires ~ to ~he greates~ ~tent feasible, op~r~i~tes
for ~rainin~ and employer be u~e available to tour inc~e residen~s ~hin ~he
~1~ of lots1 ~over~enc or ue~ropoli~an ~rea (or ~n~eCropoliCan co~cy)
~he pro}~c~ ts l~a~ed. ~ eddi~ion, ~o ~he ~rea~es~ ex~en~ feasible, con~rac~s for
~k in connec~ion ~h ~he pro~ec~ shall be ivarded ~o business conce~s ~ich are
located tn, or In subs~aflcial ~r~ o~ed by, persons restdlnI in the same ~lc of
sover~en~ or metropolitan a~a (or non~e~ropoii~an co~7), in ~ich ~he pr0~ec~
located.
~e ~r~tes ~o ~s con~rac~ ~11 c~ply ~h ~he provisions of said
Section 1, and ~he resvla~ious issued purs~n~ ~here~o by ~he $ecre~a~ of
and Urban ~velo~en~ sec forth in 24 CFR 135, and all applicable rules and orders
of ~he ~par~nenc issued ~hereunder prior ~o ~he execution of ~his con~rac~.
C~ shall Cake appropria~e action purs~n~ ~o ~he subcon~rac~ upon a findin~
~he subcontractor Is in violation of retulaCions issued by ~he Secretary of
end Urbin ~velo~en~, iA CFR 13~. ~e con~ractor ~11 no~ subcon~rac~ ~lth any sub-
con~ractor vhere l~ ~s no,ice or. k~wledse ~ the le~er ~s been found in vio-
lation of regulations under 2a CFR 135. ~e parties to this contract certify
· sree t~ they are under no contr~ct~l or o~ber disabilt~y ~ich ~uld prtven~
from c~plyinS ~h ~sa requiremen~s. (Source: Vol. IS~ [~. 10l, Title 21 CFR 135)
B. Equal Empl~enc' Opi~or~unicy
~ cerr~inl ou~ t~e program~ ~be CITY shall not discrimine~e aGains~
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an)' employee or applicant for employment: becel'se of race, color, religion, sex or
national or~. ~e C~ s~l ~ke afl,mac,ye action co ~ns~e c~c applicants
for emplo~enc are employed and c~c employees are Created durum5 emplo~enC,
omc resard ~o their race, color, rel~ston, sex.or national orison. S~h action
~nclude, buc not be l~miCed Co, ~he follo~ng: emplo~c, up,radOns, demotion or
~ransfer; recruitment or recr~t~an~ adver~isin~; layoff or ~em~nac~on; ra~es
~y or o~her fo~, c~nsa~on; and select,on for ~ra~nin~, ~nc~ud~n~ appren~ce-
s~p. ~e CI~ s~l ~s~ in conspicuous p[aces, available co ~ployees and
c~n~s for employer, no~tces co be provided by C~ CO~ se~ng forth ~he provi-
sions of ~s nond~scr~Lna~on clau~. ~e CI~ shall, In all sol/c~ons or
advertisements for employees placed by or on behlf of the CI~, scats C~ all
q~l~f~ed apple:ants vi~l receive considera~on for ~plo~enC ~Chouc resard
race, co, or, rel~s~on, sex or national or~in. ~e C~ shaI~ ~ncorporace the fore-
So~n~ requir~encs of 'c~s' parasraph ~n ~ of ~cs contra:Cs for prosram ~rh and
~11 require all of ~c8 contractors for such york Co ~ncor~race s~h requirements
~n ~1 subcontracts for prosram ~rk. Such con:races s~l be subject ~ HUD
~plo~enc ~por~Cy regulations 2~ CFR Fa~c 130 as applicab~e Co ~ asses:ed
construction con:races.
~e C~ shall cause or require co be inserted in full ~n any non-
ex.pc con:race and subcontract for consCr~C~on ~rk or mod~f~caC~on thereof,
defined ~n sa~d re~ulaCions ~ch ~s ~d for ~n ~ole or ~n ~rc ~h assistance
under ~he ~ncracc, ~he follovin~ eq~l op~rc~cy clause:
W.~r~ns ~he ~rfo~ce of ~h~s con:racE, the contractor a~rees as
1. ~e contractor ~11 uoC discr~m~ace a~ainsC any employee or
p~canc for ~plo~enc because of race, color, rel~ton, sex or flac~onal or~G~n.
~e contractor v~l ca~ affl~a~ve ~cc~on Co ensure C~C applicants are employed
and C~c ~ployees are treated durin~ ~plo~enC, ~chouc re~ard ~o Cheer race,
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1 color, religion, sex, or national origin. Such action shell include, but not be
2 limited to, the follo~in§: Employment, upgrading, demotion or transfer, recruitment
3 advertising, layoff or termination; rates of pay or other forms of compenseCton and
4 selection for traininG, including eppren£icesbip. Thc contractor agrees to post in
5 conspicuous places, available to employees and applicants for emplo~ent, notices
6 be provided by the ¢I1~ setting forth the provisions of this. nondiscri~tnetion
7 clause.
8 2. The ~ontrector rill, in all solicitations or advertisements for
9 employees placed-by or on behalf of the contractor s~ate char all qualified appli-
l0 cants ~ii1 receive consideration for employment ~rlchouc regard co race, color,
11 religion, sex or national
l~ 3. The contractor ~ill send to each labor union or representative of
13 vorkers ~ith which he has · coLiec~ive bargaining agreement or o~her contract or
14 understanding, a notice advising the said labor union or yorker's representatives of '
15 the contractor's cou~nitment under Section 202 of Execu~ive Order 1121'6 of September
16 2&~ 196~ and shall post copies of the notice in conspicuous places available to
17 ployees end applicants for employment.
18 ~. The contractor rill comply ~ith ell provisions of Executive O~der'
19 112&6 of September 2&~ 1965 end of ~he rules~ regule~ions and relevant orders of the
~0 Secretary of L~bor.
21 5. The con~ractor rill furnish ell information and reports required by
~. Executive Order 112&6 of September 2&~ 196~ end by ~he rules~ regulations end order
~ of the Secret~ry of Labor or pursuant thereto end ~ill permt~ access to his books~
24 records and accounts by the Departnent end the Secretary of L~bor for purposes of
2~ vestiga~ion to ascertain co~pliance ~ltb such rules~ regulations and orders.
~6 6. Zn ~he event of the contractor's noncompliance ~rlth the nondis-
~? crimlnation clauses of this contract or vith any of such rulest regulations or
~ orderst ~hls contract ~ay be cenceled~ terminated or suspended in ~hole or in par~
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· ! end the contractor may be declared ineligible for further Covernment contracts
2 or federally assisted construction contract, in accordance w~ch procedures authorized
3 in Executive Order 112~6 of September 2&, 1965, or by rules, regulations or order of
4 the Secretary of Labor or as otherwise provide, d by law.
5 7. The contractor will include the portion of the sentence i~znediately
6 preceeding paragraph (1) beginninS with the words "During the performance of..." and
7 the provisions of paragraphs (1) through (7) in every subcon£ract or purchase order
S unless exempted by rules, regulations or orders off the Secretary of Labor issued
9 pursuant co Section 20~ of the Executive Order I1246 of September 2&, 1965, so that
10 such provisions will be binding upon each subcontractor or vendor. The contractor
11 ~ll ,take such action ~th respect to any subcontract or purchase order as the
19. Department may direct as a means of enforcing such provisions, including sanctions
1~ for nonco~pliance; provided, however, ~hat in the event a contractor becomes involved
~4 in, or. is threatened ~£h, litigation ~-~th a subcontractor or vendor as a result of
~ such direction by the Department the contractor may request the United States to e~.-
~6 ter into such litigation to protect the ~nterest of the United States."
~7 The CITY further agrees that it w~ll be bound by the above equal oppor~unity
18 clause with respect to its o~n e~ployement practices when it participates in federally
19 assisted construction work. The above equal opportunity clause is not applicable to
~0 any agency, instrumentality or subdivision of such CITY which does not participate in
21 ~ork on or under the contract.
~- The CITY agrees that it ~r~ll assist and cooperate actively with COUntY,
~3 and the Secretar7 of Labor in obtaining the compliance of contractors and subcon-
~4 tractors ~th the equal opportunity clause and the rules, regulations and relevant
~ orders of'the Secretary of Labor; that it will furnish the COUI~I~f, HUD and the Sects-
9-6 ~ary of I~bor such information as they may require for the supervisions of such com-
~'~ pliance; and that it ~ill otherwise assist the above parties ~n ~he discharge of
~.~ primary responsibtli~y for securing compliance.
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The CITY further agrees that it will refrain from entering into any con-
tract or contract modification subject to Executive Order lll&6 of September
1965~ with a contractor debarred from or who h~s not demonstrated eligibility for,
Goverrunent contracts and federally assisted construction contracts pursuant co the
executive order and will carry out such sanctions and penalties for violation of
equal opportunity clause as =ay be imposed upon contractors and subcontractors by
by RUD 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, ter-
minate or suspend in whole or in part the grant or loan guarantee; refrain from
tending any further assistance to the CITY under the program with respect to ~hich
the failure or refusal occurred until satisfact~ry assurance of future compliance has
been received from such COL~RACTOR (Source.: H/C~ ?undtng Agreement ii and Executive
Order 11246, Part II, Subpart B, Section 202)
Co Federal Labor Standards
ExcePt with respect to the rehabilitation of residential property
signed for residential uae for less than eight families, the CITY and all contractors
engaged under contracts in excess of $2,000 for the construction, prosecution,
pletion or repair of any building or work financed in whole or in part with assist-
ance 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 19 CFR Parts 3 (Copeland act)~ 5, and 5a (Davis-hcon Act)~ governing
the payment of wages and the ratio of apprentices and trainees to jo~rney~en: Pro-
vided, that if wage rates higher than those required under such regulations are
posed by state or local law~ 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 &ll suoh contracts subject to such regulations,
provisions meeting the requirements of 29 CFR 5.5 and for such contracts in excess of
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$10,000, 29 CFR 5a.3. The 'tFeder~l Labor Standards Provisions" (HUD &OlO) are ~ade
par~ o~ this contrac~o
~o abard of ~ contracts c~ered under ~his section of ~he con~rac~
o~ll be mede ~o any con,racer who is et ~he t~e inelisible under the provisions
lny applicable regula~ions of the ~rtmenC of ~bor to rec~/ve an a~rd o[ such
con~rac~. (Source: ~CD Fu~l~ ~re~en~ ~7)
~1 dm~m~s su~i~ed by ~he C~ ~o ~he CO~Y ~hich are r~quired
for c~pliance ~h ~he Federal ~bor s~andards, s~ll b~ cer~i~ied as being
accura~e~ and complete by ~ CLOy ~g~eer or ~ Director of ~blic ~orB.
(Source: ~a~e ~y ~)
D. ~naDiscrimt~ion
~e C~ tn any ac~lvl~y directly or lndir~c~ly financed under
concrac~ ~ shall c~ply ~ch~ ' '
1. ~1~ ~ of ~h~ ~l~lI ~th~s ~ of i~61 (~b. L. 88-3~2)~ and the
rttula~ions issued purs~ ~here~o-(2~ ~ Par~ I)~ vhich pr~idts ~ no person
~h~ ~l~ed S~ates shall on t~ gro~ds of r~e~ color, or ~tio~l origin, be exclu-
ded fr~ per~ici~ion ~ be denied ~he benefits of, or be ocher~se sub~ec~ed ~o
dlscrtm~a~lon ~der any prosr~ or ic~tvl~y for ~lch ~he sppltcan~ receives Federal
financial assis~i~e i~d ~1 i~edie~ely a~ any measures necessary ~o effective
~his assurance. ~ ~ny rul p~r~y or ,cr~Cure ~hereon is provided or improved
~Ch Ch~ aid of F,deral financial ,ssis~a~e u~e~ed ~o ~he applicanc~ ~his assurance
shll obllte~e ~he applicant~ or in ~ c~se of any ~ransfer o~ such pro~r~, any
~ransferee~ for ~h~ period duri~ ~ich ~he real pro~r~y or structure is used for
a put.se for ~lch c~ Federal financial assis~ence is tx~ended, or for ~no~her put-
.se involvin~ the pr~iston of sblllr se~ices or benefits.
2. ~l~le ~II of tb Cl~ ~thts ~ of 1968 (Pub. L. ~-28t),
~ended, a~inis~erinl ill prosrams and fc~ivi~ief relaxinI ~o ~usin~ and c~munt~y
developm~c tn · m~ner ~o afit~acively further fair ho~int; and ~ill ~ake acctofl
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co affir~atively further fair housing in the sale or rental of housing, the financing
of housing, and the provision of brokerase services.
3. Section 109 of the ~ousin§ and Co,unity Development AcC of
and cite regulations issued pursuant thereto (Zi CFR Part 570.601), vhich provides
ChaC no person tn the Unt£ed S~a~es shall on ~he grounds of race~ color, national
origin, or sex, be excluded from participa~ion ia~ be denied the benefits oft or be
subjected ~o discrimtna£ion' under, any program or activity funded in ~hole or in
part vi~h funds provided under chis Part.
&. Executive Order 11063 on equal opportunity in housing and nondis-
crimination in the sale or rental of housing built rich Federal assistance.
(Source: Vol. &3, l~o. il, Title 2& CFR Part 570°307 (L 1-~))
E. Accessibility[Usability of Facilities and' Buildings for Physically
Handicapped'
The. CITY in any activity directly or indirectly financed under chis
contract shall require every building or facility (other than a privately 'o~ned resi-
dential structure) designed, constructed, or altered .riCh funds Provided under this
Parc co comply'~riCh the ~erican Standard Specifications for Baking Buildings and
Facilities Accessible Co~ and Usable by, the Physically Handicapped," t,~mber
i-llY.l-R 1971, subject ~o the exceptions con£atned in. &l CFR 101-19.&01. The CIndY
~111 be responsible for conducting inspections to insure compliance vith ~hese speci-
fications by any contractor or subcontractor (Source: 21 CFR Parc $?0.30? (£))
F. Relocation
1. The CITY in any activity directly or indirectly financed under Chis
contract shall:
eo To ~he greaces~ ex~en£ prac£1cable under S~a~e la~, comply ~ith
Sections 301 and 302 of Title III (~ntfom Real Property Acquisition Policy) of the
Unifor~ Relocation Assistance and Real Property Acquisi~ion Policies Act of 1970 and
~ill co~ply trlth Sections 303 and SO& of Title III, and HUD im~lementln~ ins~ructions
Page 7 of 13
at l& CF~ Part ~2; and
b. Inform affected persons of their rights and of the acquisition
policies and procedures set forth in the regu.lations at 2~ ~ Parc
a. ~mply ~ch Title II (Unl~o~ ~l~acton ~sts~ance) of the
Untfom Relocation ~ststa~e a~ ~al Property ~q~t~ton Policies ~ of 1970 and
H~ tmpl~enttn~ res~attons at 2~ CF~ Part 12 and ~70.~2(a)1
b. Provide reloca=ton ~enCs and offer relocation asstsCa~e as
described tn ~ccton 205 ot the ~1~o~ ~I~acton ~stscance ~c ~o ail ~rsons dis-
placed as a reset of acquisition of reaZ property for an acClvtcy assisted under
~t=y Develo~c.Block Crane ~ogr~. Such pe~encs and aastsCance shall be
pr~tded tn a fair and consistent and eq~cable manner t~t ~sures.~c =he reloca~
g/on process does no~ result tn different or serrate ~reaCm~= of s~h ~rsons on
~2~o~ of races color, religion, ~tonal or/g/n, s~, or source of
3. ~sure c~c, ~c~n a r~aso~ble ~rtod of =tm~ prior ro displace-
menC, c~parable decent, safe and sanitary replac~en~ dwellt~s vtlI be available
all displaced fam~les and indtvtd~ls and c~c the range of choices available
s~h persons ~11 ~C vary on accost of their race, color, reltiton~ national
'ortgtn~ sext or so.ce ol tnc~e; and
~. ~fom affected ~rsons of the rel~atton assistance, policies and
proc~ures meg forth tn the re2ulattons ac 2& ~R Par~ ~2 and ~0.602(a). (Source:
Vol. ~3, ~. ~1 Tl=le 2~ CFR Pa~t ~70.307 (n & o).
C. Lead-Based Paint Hazards
~e cons=ruction or re~btlt~a~lon of residential structures with as-
sts~anc~ pr~ided under ~hts ~n~rac~ Is subJec~ ~o ~he ~UD ~ad-~se Patnc regula-
tions, 24 CFR Parc 3~. ~y &rants or loans made by =he CITY or ~rk perfo~ed by
the CI~ for ~he rehabtltca=ton of residen~tal sgruc~ures with assistance provided
under this Contract shall be made sub,Jeer to the provisions for the elimination
2 leadbase paint ~azards under subpart B of said regulations and the CITY shall be re-
a sponsible for the inspections and certifications required under Section
4 thereof. (Source: fl/CD Funding A~reement #5 a~d 21 CFR Part 2§)
$ Il. Flood Disaster
6 This Contract is subject co the requirements of the Flood Disaster Pro-
? tection ACt of 1973 (PoL. 93-231). ~o portion of the assistance provided under this
8 Contract is approved for acquisition or construction purposes as defined under Sec-
9 tion 3(a) of said Act, for use in an area identified by the Secretary aa having
10 special flood hazards, which is located in a community not then in compliance ~th
11 the requirements for par:i¢ip~tion in the national flood insurance prosram pursuant
1~ to Section 201(d) of Said Act; and the uae of any assistance provided under this Con-
13 tract for such acquisition or construction in such identified areas in communities
14 then participating in the national flood insurance program shall be sublect 'to the
15 mandatory purchase of flood insurance requirements of Section 102(a) of said Act.
16 Any Contract or Asreement for the zale~ le~se or other transfer of land
17 acquired, cleared, or improved ~lth assistance provided under this Contract shall
18 contain, if such lend is located in an area identified by the Secretary as having
19 special flood hazards and in ~hich the sale of flood insurance has been made avail-
~0 able under the I~ational Flood Insurance Act of 1968~ as amended~ &2 U.SoC. 1001 et
21 seq., provisions obligating the transferr~e and its successors or assignees to obtain
~ and maintatn~ during the o~nershi~ of such land~ such flood insurance as required
~] ~rith respect to financial assist, ante for acquisition or construction purposes under
~4 Section 102(a) of the Flood Disaster Pro~ection Act of 1973o Such provisions shall
~. be required notwithstanding the fact that the construction on such land is not itsel~
26 funded with assistance provided under this Contract. (Source: It/CD Funding
~ Asreement
28 The CITY shall comply with the provisions of Executive Order I1296~ relating
Page 9 of 13
2
3
4
5
6
7
8
9
~0
~3
~5
16
17
~8
~9
2!
26
Co evaluation of flood hazards and ~xecuCive Order 11288 relating co the prevention,
con~rol, end aba~emen~ o£ va~er pollution. (Source: Vol. &3, I~o. ilt Title
2~ c~g 570.307
Compliance with Air and ~a~er Aces
~e CI~ shall ca~e or re~uire'~o be inserted in full tn all
con~rac~s or subcontracts for ~rk furnished In whole or In par~ by ~he iran~ con-
~rac~s, ~he Iollo~nt require~s (provided t~ con~rac~s~ subcontracts and sub-
loans ~c exceeding $1~000 ar~ ex,pC fr~ ~hts parc:
~18 ~ncrac~ la sublec~ ~o the requtrem~s of ~he Clean ~r ~t~
emended, a2 USC 18~7 e~ seq.~ ~he Federal ~a~er ~ollu~lon ~n~rol ~ ~ ss ~e~ed
~3 USC 12tl e~ seq. and ~he regulaCtofls o~ the ~vtro~en~al ~o~ec~tofl Agency ~h
respect ~here~o, a~ 10 ~ Par~ I~, as ~ended fr~ ~e ~o
~ c~pliance ~h said re~ula~ions, ~he C~ shell ca~e or requir~ ~o
be inserted in. full in all con~rac~s and subcontracts dealinS ~h ~y ~n-~p~
~ransaccion thereunder f~ded ~Ch assistance provided ~der chis contract, C~
lo.inS requir~en~s:
1. A s~ipula~ion by ~he con~rac~or or subcontractors ~h~ any facility
co be ucilized in Zhe perfoma~e of ~y non-ex.pc contract or subconCracZ Is
lls~ed on ~he lis~ of Viola~in~ Facili~ies issued by ~ ~viro~en~al ~o~ec~ion
~e~y (EPA) purs~n~ ~o 10 CFR
2. ~re~c by ~he ~n~rac~or C~ he ~11 c~ply ~h all the re-
quir~en~s of Section 11~ of ~he Clean ~r ~, as ~e~ed (12 USC 18~7c-8) a~ Sec-
~lon 308 of ~he Federal ~a~er Pollu~ion ~n~rol ~, as a~ended (33 USC 1318)
relactns ~o inspec~ion, monltor[ni, entry, re~r~s and lnfo~lon, fs ~ell as all
o~her requiremen~s s~cified ~ said bction iiI and ~c~lon 308, and all relulacions
and suidelines issued ~hereu~er.
3. A s~ipula~ion ~bt as a condt~ion for ~he a~rd of ~he con~rac~
pr~pc ~Cice will be siven off any nocificaCiofl received fr~ the Director of the
PaKe 10 of 13
1
2
3
4
5
6
7
$
9
10
11
12
13
14
15
16
17
18
19
21
23
24
25
26
27
EPA, Office of Federal Activities or any agent of that office, that a facility
utilized or to be utilized for the contract is under consideration to be listed on
the EPA list of Violatinl Facilities.
&. An A~reement by the contractor that he ~111 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 rill ~ake such
action as the Coverraent may direct as a means of enforc£ng such provisions.
In no event shall any amount of the assistance provided under this con-
tract be utilized vith respect to a facility which has siren rise to a conviction
under Section ll3(c)(1) of the Clean Air Act or Section 109(c) of the Federal Water
Follution Control Act. (Source: ~/C9 Fundin~ Agreement #6)
Jo Hanase~ent Co;pltance
Th~ CI;~ in any activity directly or indirectly financed under this
contract, shall co~ply
~2 Circular l~o. A-102, l~{ised, and Federal ltanagem.ent Circular 7&-~: Cost princi-
ples applicable to srants and contracts ~lth State and local governments, and Federal
}~nasement Circular 7&-7: b~ifor~ Administrative l~quirements
State and local ~overrments as they-relate to the application, administration, accept-
ante and use of Federal funds under this Part. (Source: ~ol. 13, }Io. il, Title 2~ CFR
Part 570.307
~. Obligations of' Contractor vith Respect to Certain Third Party
Relationships
The CITY shall remain fully obli~ated under the provisions of this con-
tract notwithstanding its desi~nation of any third perry or parties for the under-
l~king of any part of the protram with respect to ~nich assistance is bein~ provided
~nder this contract to the CITY. Such third party or parties shail co~ply with all
la~ul requirements of the CITY necessary to insure that ~he program ~itl~ respec~ to
~hich assistance is being provided under this contract to the CIT~' is carried
Page
1
2~
3
4
6
7
9
10
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.12
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16
17
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19
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26
27
accordance vith the CITY's assurances and certifications, including those ~l~h respect
to the assumption of environmental responsibilities of the CI~ under Section lO&(h)
of the Housing and Community Development Act of
ment ~9)
(Source.* H/CD Funding A~ree-
L. Interest of Certain Federal Officials
No member or Delegate to the Congress of the United States and no Real-
dent Connnissioner, shall be admitted to any share or part of this contract or zo any
benefit to arise from the sameJ (Source: H/CD FundlnS Asreement ~10)
Ho Interest of Hembers, Officers or Employees of CITY, Hembers of Local
Governing Body or Other Public Officials
No member, officer or e~ployee of the COU~£~ or CITY or its designees
or agents, no member of the governing body of the locality in vhich the program is
situated and no other public official of such locality or localities vho exercise, any
functions or responstbllitt~s ~th respect to ~he 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 york to be performed in connection vith the
program assisted under ~his con~racto The CITY shall incorporate or cause to be
corporated, in all such contracts or subcontracts a provision prohibitinS such in,er-
est pursuant to the purposes of this section. [Source: H/CD Funding A~reemen~ ~11
and Vol. &3, Es. Il, Title II CFR ~70o307 (p)]
~. Prohibition Atainst Payments of Bonus or Co~ission
The assistance provided under this con~ract shall no~ be used in the
palflnent of any bonus or co~lssion for ~he purpose of obtaining HUD approval of the
application for such assistance or ~UD approval of application for additional assist-
ance of any other approval or concurrence of HUD required .under this contract, pro-
vided, hoveyer, that reasonable fees or bona fide technical, consul~ant, managerial
or other such services, other than actual solici~ation, ere not hereby prohibited if
oChervise eligible as program cost. (Source: It/CD Fundin~ Agreement
Page 12 of 13
1 O. Hatch Act Compliance
9. The CITY and COUNTY shall comply vith the provisions o~ the }latch Act
3 which limits the political ac~lvl~y of employees. (Source: Vol.
~ P. Definitions
6 ~roug~u~ ~hese Spec~l Provisions ~he meaning of vords shall be
7 meaning given by ~he ac~, reg~a~ion, hecucive Order, Federal I~nagamen~ Ctrcular~
$ asreem~=, or rule cited ~rein ~s ~ source for ~he section in ~ich =he ~ord ap-
9 ~ars. (Source I ~anse ~un~y
10 ~.
11 Federal ~nai~en= Circular 7~-7 ~s been =eplaced ~=h Office of
~ }~nasemen= and Budsa~ (~lB) A-102.
13 ///
14 ///
15 ///
16 ///
17 ///
1S ///
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~ ///
21 ///
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26 ///
27 ///
~ ///
AP:dlc1161(10) Pase 13 of i3
1
Contract No. C26886 - Exhibit "B"
755.
Neighborhood Housing Rehabilitation: Shaded Area
1" = 600'
CITY OF TUST~
ENVIRONMENTAL MANAGEMENT AGENCY
Councy/C~y ConCrnc£ F..xh:f. btC "C"
HOHE INI~ItOVE~NT PIIOCRAH
FItOCEDURES ItANUAL
COUI~Y OF OR. GE
ENVII~ONHENTAL NANAGENEN? AGENCY
ltOUSING/COI~UIqlTY DEVELOP~E,~T PROCRA~ OFFIC~
1200 No Katn Street, Su$ce 600
Santa Arm, California 92701
Field 0fflce
7801 J~atella Avenue
St&nton, Caltforn:[a 90680
PART 1. HOHE I~PROVE~IENT PROCRAH PROCEDURES HANUAL
Table of Contents
Introduction
Section 2
Section 3
Section 4
A~PF.~DIX A
LOW INTRUST LOANS
1.01
1.02
1.03
1.0&
1.05
1.06
1.07 ' ·
1.08
Low Interest Loons
Elt&ibllity Requireuents
Applicant's Income
FHA Title I Insurance
Eli&ible Improvements and Costs
Temporary Relocation Assistance
Processins Low Interest Lo. ns
Truth-In-Lendins Requirements
DEF£1~ED PA~t~RT LOANS
2.01
2.02
2.03
2.0&
2.0.5
2.06
2.07
SPOT
3.01
3.02
Deferred Payment Loans
Approval of Deferred Payment Loans
Eligibility Requirements
Applicant's Income
.- Rltgtble Improvements and Costs
Temporary Relocation Assistance
Processing Deferred P&~uent Loans
REHABILITATION LOANS
Spot RehabilAta~lon Loans
Processing of Spot Rehabilitation Loans
lt~IABILITATION GRANTS
&.01 Rehabilitation Grants
&.02 Processtn~ Rehabilitation Grants
PROPERTY REHABILITATION STANDARDS
1
2
6
7
8
9
13
18
18
19
19
20
........ PART 1 HOI~E I~ROVE~NT PI~OGRAI!
Introducttou
The Home Improvement Program provides belay market interest loans and
grants co rehabllit&te residential properties throughout unincorporated
areas of Orange County, and in particular areas designated by the Housing/
Community Development (B/ED) Application. These areas include the Cities
of Scant,n, Los. Alamitos~ Cypress, San Clenente) Laguna Beach, and Y.tbs
~ndao The unlncorpora£ed areas are Colon~a Independencia, £1 B.dena,
Olive Island, Picadilly, Superior ?riange, ~ldvay City, Cypress Islands,
?uat~n islands and Anaheim Islands. New areas may be added Xn future
H/ED funding years.
The major funding source for the Program ts the Community Development
. . . Block Crant (EDBC) Act as amended, a Federal program, The primary objective
""~'~ .... ". .... . .... is to develop viable urban co~uunitiea principally for persons of Iow and
The re~abtlitacion and preservation of housing is one of the key eligible
act~v~tiea pernicCed and encouraged by the ~DBC AcC. The County Board
of Supervisorso in keeping with the intent of the legislation, has authorized
a signif~canC portion of ice annum! CDB6 funds Co be used for a Hone .
Improvemen~ Program (HIP). The Board of Supervisors has approved an agree-
ment(s) wiZh SecurityPactfic National Bank whereby the Bank will make lo~ '
la, erase'loans ~o h,me,vnet and nul~-fsmily residentia! sppllcants neet~ng
program requirements end approved by ~he County. An agreenen~ wi~h Hercury
Savin~s and Loan has also been approved for the provision of loan funds for
mobile hone rehabilitation. Both agreements P~ovide /averaged dollars at
a ratio of approximately 2~ co I depending on money market cond~ctons.
Additional fundinA sourcea ua~ lnc3ude, but are not limited to, the
Department of Housing and Urban Developmen~*s Section 3~2 loans program,
State o~ California's Housing Finance Agency program, and private funds
which may resu~c from 2everaging. 1~herever necessary, one or more ~undinG
source may be used Co cover the entire coec of rehabilitating a particular
housinA unit(s).
The Director of EPIA is responsible for the County Home ~uprovement ProGram.
The ~aflager o~ EHAVs Housing and Connunity Development Program Off,ce has
bean delegated by ~he Director ~o be responsible for the Ho~e Improvement
~rogramo The Hone Inprovemen~ Section Chief may oc~ on any pert(s) on
behalf o! ~he basset, H/CD ~f so designated by the ~anager.
The following aectSons outline the gutdeI~nes and procedures under which
" ~he County Hone Improvement Program viii operate. Section $70.202 is
the specific provision of the Housing and Community Development Act which
authorizes the County Co mike CDBC funds available for bone lmprovemenz
purposes. Vhenever the use of funds and/or activity under this program
is in doubt, Section $70.202 shall prevail.
This Frocedure$ Hanua! supersedes the Hone Tmprovement ProGram Procedures
~enual end al! amendments end revLs~ons previously approved. ThLs Manual
becomes effectLve X~ned/ateXy upon approve! by the County of OranGe Board
o£ Supervfsor8 .
SEC?ION I. LO~ IN?£~E$? LOA~S
Sect/on 1.01 Lov Inter,sc Loans
Through the lev,raging of CDBG dollars, the County makes available loan
dollars ac a ratio of 2.$:1 depending on money market conditions. Security
Pacific ~ational Bank /s the current contract financial institution for
single-family res/dent/al and multi-family properties. Nercury Savings
· nd Loan Association underwrites mobile hone loans.
Approval
A rehabilitation loan may be approved only rhea the. follovtng conditions
exist:
An executed Grant Agreement exists betveen the County of Orange and
the U.S. Department of Housing and Urban Development under TlC~e l
of the Housing ·nd community Development Act of 1974 and subsequently
·mended.
2. There ex/scs au executed Agreement between · financial lnsCitu-
t/on and the County of Orange to prov/de rehebllitatlon loans
to property oumrs, or
3. Provisions have been m-de v/th other Sc·to or Federal Agencies Co
make Section 312, 225 or CHPA loans available in the County.
Restrictions on Notifying Applicant o£ Loan Approval[
Although & loan application has been accepted for processing by the
County of Orange, approval by the County uusc ava~c noc~ftcacion
by the financial institution In Sec[ion 1.01A.2 or A.3 above before
cha applicant ts advised by County ther h/s or her loan application
hs ~en approved. ~e ~uncy of 0ranAe v1~ note in ica flies the
means and dace of notification Co the applicant of ~oan approval,
No york ts Co be ~rfo~ed prior co C~e notice unless such noc~ce Is
valved by Cha D1reccor in su~ cases as enersency (Health and SafeW)
condition exists. ·
C. Restrictions on Number of Loans
The number of lov Interest or deferred paymen~ rehabilitation loans
which Bay be Bade to any property outer under the Home Improvement
Program la one (l)..
This restriction may be valved in vritlng by the Director, Environnental
Hanagemen~ Agency. Requests for a waiver of this restriction shel~ be
made by the loan applicant, in vTtting, co the Director. Requests
to the Director nusc be accompanied by a recouoendatton of the
Home ~mprovemenc Program for approval or disapproval of the request
for a valver.
-1-
l~ a request for · ~aiver of this restriction ia denied by Director,
loan applicant may appeal decision to Orange County Board of Super-
Do Applicability of Other Hanuale
~lle all rehabilitation loans are sublect to the requirements of
this manual, there ere special provisions and limitations on the
making of rehabilitation loans depending on the type of project or
program ares. Consequently, in addition to the provisions of this
procedures manual, rehabilitation loans msde on property under this
program are sub~ect to the rules and tabulations of the ~omnunity
DeveIopment Block Grant Program as amended from time to time by the
U.S. Department of Rousing end Urban Development, smd tabulations
governing the uee(s),of.other funds uhlch may become available.
E. Application Files
· . .....;.:::i-..~.!~: ~ .. The County of orange and the financial institution shall maintain an
application file for each application that it processes, The file
maintained at the fin~ncial institution shall be separate from, and
in addition to, any other file maintained by the County of OrnaDe.
· .. Copies o£ the file shall be Nde available to the County of OrnaDe,
U. S. Department of Housing nd Urban Develop~ent, or state officials
.... upon au appropriate request.
-' Section 1.02 Elitibtlity Requirements.. -._ .
A, General Terns and Conditions . " ..
This section Sets forth eligibility requirements as to the property
. and tha applicant for a rehabilitation loan.
B. Property Eligibility Requirements
A rehabilitation loan ~ay be made to properties located uithin
--~--~:.,'-,...-.>~. .target ·re·a deei~natad in the County of Orange Rousing and Connunity
..~i ...... ~.,~.:..~,..::. Development Block Grant Application. The property must need rehabili-
tation to comply uith the Property Rehabilitation Standards adopted
by the Board of Supervisors as amended (Appendix A). ~ligible prol~=
erties must be residential structures of one or more d~elling units.
Rental properties nay be eligible but only if the o~ner assures the
County in vrtting that no displacement of renters ~ill occur, snd
that · N~ority of current renters are lov/noderats income, end tha~
the ovner makes mn acceptable e~ort(s) to obtain rental assistance for
tenants as may be available from time to time through the OranGe
County Rousing Authority or · similar such rental assistance agency.
}tanager will make determination of acceptability of this effort(s).
App!lcanc my appeal to Director negative finding(s).
~narnst oleo agree to uaintmln rents and rent increases In accor-
dance with Federal Section 8 Existing Fair ~arket Rent ProGram tn
the event no other rental assistance Is available, This requtrenenL
shall b tn the fo~ of a deed restriction for the term of the loan.
-2-
¢. Applicant Eligibility Requirements
To be eligible for a housinS rehabilitation low interest loan, the
applicsnt must demonstrate adequate ability to repay the loan, be of
legal age, end neet the eligibility guidelines. & rebabll~Cation
loanvtll not he approved by the £Lnancial institution if the appli-
caut*s record shows a disregard for former obligations,' or if there
ia a clear indication of ln~bilicy to sake the pe~enC Chat will be
requ/red.
A loan applicant must be the o~ner-occupant of the property, the
absentee owner of th~ property or the purchaser of the property
under a land sales contract or any sinilar contractual sgresnent
for the purchase of real property. An sppllcaflc having a lease for
a fixed Cern expiring nsc less than six calendar months after the
maturity of the loan may, with the o~ner's consent, apply for a loan.
An appllcont for a rehabilitation loan who nay be eligible for any
other form of housing assistance (e.g. CDC*s Connunity Improvement
Pro,ccC, Section 8 assistance) will be advised and ass/seed in ap-
plying for any other lorn of assistance, in addition to this rehabili-
tation loan.
Do Income ii.ca
/''"" ' ~e Hous~nt and C~un~C7 Development Acc of 197~ and subsequent
auendmenCs requ~res thc the programs ~ authorizes be or~ented
. pr~nc~pall~ for ps,sons of lOW and uodera~e ~ncoue. ~e Counc~ of
Orange, ~n keep~n~ w~ch the ~nCenC of'the 2eSCalation, hs established
requ~remeflCs for parc~c~pacion ~n the proiram chic are c0ns~scenc
w~h these Federa~ su~del~nes
~o interest rates have ~en established, one rate at 3 ~rcenc
and the other at 9 percent.
3~ Interest Loan
Priority shall'be given to persons whose annual income is within
the limitations prescribed by the Section 8 Roue/ns Assistance
PayaenC Program. This Is equivalent to 80~ of the uediafl intone
for the A~bel~-Carden Grove-Santa Ane S~SA. Listed belo~ are
the current income liuits as established b~ HUD for this ares.
Number of Persons
Per Househo2d '
Income Limits
S12,900
$1&,700
$16,550
S18,&00
819.350
$20,700
$21,850
$23,000
-3-
service areas for concentrated use of Housing end Community
Development funds. ~hosa persons whose incomes Are At or below
these limits Are ell&ibIe for A 3H loan within the service ires.
Interest rate for loans made outside of an approved 'service
Area shall be 32 for homeowner(s) who neet the low/moderate income
requirements At provided above. Income limits are subject to
change. HUD issues periodic updates of income guidelines.
Upon staff confirmation of the existence of A health and safety
condition, the Director nay exceed these income limits by 20t.
Written approval must be siren by the Nanager in each case.
Additionally, 70~ of rehabilitation funds available under the annual
CDBG Application vil! be made available to persons whose incomes
fall vithin the above listed limits. Grants end DFL's, vhich Are
covered under separate sections, may also constitute all or A portion
of this 702 requirement. This distribution may not be waived.
2. 9~Loan ..
Since the County's goal la to improve the entire designated
.......... target ares(s), property ovners whose income exceeds the lay/
_ [.: '.. ..... ~: :_~.'." moderate income limits ~ay qualify for a 92 loan, However, only
30~ of rehabilitation funds for loans may' be used for this purpose.
.-..: ._..'~:_: .' ,.,...:......'. ).. .-'....:.:
E' property ~t~i~a~ts '- '- ' .' '
...... [~ i~erest loans rill be made available onl~ ~o ovner-occupan~
~ppllcant(s) vhose Iross ~ssecs excludlnl principal residence and
Personal properc~ are less c~n $~0,000. ~is provision rill ~o~
apply to rental property.
Loan Amotmt
The'uxi~Lm ~oTell loans made shall be consistent rich the U.S.
Department of Housing And Urban Development's Section.312 ?rograu.
Effective February 1981, this maximum will be $33,500 for svruccures
of one to four unica. For five or nora units in single structure,
the maximum lo~n shall not exceed $1~,000 per unit or that set by
Section 212, whichever la hither. The maximum may chanie upon official
notice in the Federal Register. ~obile home rehabilitation loans,
however, may not exceed $5,000 without Director approval.
Interest Subsidy
Payment of the interest subsidy required by the County to yield the
financial institution the current market rate for loans of this nature
may change from time to tiM. Change in the discount rate charged the
County must be preceded by written notice to the County by the financial
institu~iono
Rs Re£inance
A· permitted by Section $70.202(c)(2)(il)(8) of the Ho,sial
Connunlcy Development regulation, if necessary to finance the
tat~on york for lay/moderate income applicants, refinancing may be
origin·ted ·ub~ect to the name loan limits described ~n Section 1.02
above. The property must be owner occupied.
Section 1.03 Applicant's Income
As General
This section nets forth the method of establishing an applicant's
income for the purposes of a rehabilitation loan on a residential
property and takes Into account the variations between different
type· of appltoants and properties. The applicant's Income shall
be related to the program's income l~mtts for a family of the same
.... '.' size ·a the applIoanC'· ' " '. · · ·
c.'
Type of ApplIoanc
In order Co make determinations with respect to eligibility for a
rehabilitation loan ·n applicant is identified as having either
lay/moderate income or above Iow/moderate income.
Sources of Funds and Amounts Comprising Applicant's Income
The ·alloying t· · listing of tbs element· comprising income, for
purposes of a rehabilitation loan. Allovance· to reduce Brass
come are stated'in paragraph D. £xclusLons from income applicable
in special circumstances are stated in par·$raph E. Income of an
appllc·nt includes the gross income of the applicant and h~s/her
family. The ·pplicant's family includes the applicant and any ocher
person or persons related by blood, uarriale, or operation of law,
~ho share the same dwelling unit and/or has o~nership interest tn
the property° An applicant's income uusc be established on an annual
basis for the preceedtng tvs years at the time of ·pplyin~ for ·
rehabilitation loam, and may include, but Ia not limited to~
The applicant's gross earnLna·o
Spouse's gross earnings, and earnings of all other members of the
family who share the household, Lf the employment of the spouse
or ocher family member ia a definite character~stic of fam~2?
ILfe .......
Other income regularly received by the applicant or his/her
family from any source.
Income from assets including savings, troth, bond·, vacant
land, etc.
lncome from real estate 'including rental units on the proper~y
to be rehabilitated based on:
On the basis of In svera&e of experience for Cwo or morn years,
expenditures for mortgage principal and interest, mortgage
insurance premium, service charges, hazard insurance, rna!
estate taxes, specia! assessments, maintenance and repairs,
heating and utilities, ground rent, and other cash expendi-
tures for the property such as advertising vacancies shall
be calculated end deducted to obtain net income amount. If
the applicant has not ,meed the property for two or more
years, the County of Orange shall estimate the income and
expenditures on the svai~able experience.
6. Business ~nco~eo
D, A~lovances
Gross income of the applicant (o~nerooccupant) shall be reduced by
the following allowances when applicable. Supporting documentation
must be available for a major permanent illness or chronic condition.
1. Medical expenses for a ua~or illness or chronic condition which
.... are not'covered by ~nsurance.
Exclusions from Income
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, bBC only where such care is necessary to
able a family member Co be gainfully employed. The am.uriC
able as unusual expenses ~hall not exceed the amount of income
from such employment... ~. .
.... ;; ~ ' '
The follow, nd exclusions apply to an applicant's income (ovnerooccupant)
~n connection with s rehabilitation loan on residential pr,percy.
0
C~tldren's Lnco~e for purposes of establishing the amount of the
applicant's income that La relevant to the program's income
limits shall be excluded. The child uust be m dependent as de-
fined by the ~oSo Internal Revenue Service.
Section 1.OS
Excluded is the income of an adult family member, other than the
applicant and spouse, who does not have an ownership interest in
the property, but included are any funds contributed or paid to
the family by an excluded adult family member. The excluded
family member Ln this case must not reside with the applicant.
FHA Title I Insurance
Vhanever possible, loans will be processed by the financial institution
for FHA Title I insurance.
Section 1.05 Eligible Improvements ·nd Cost·
This section set· forth, but doe· not limit, example· of eligible
and mandatory improvements under the rehabilitation program as veil
e· ineligible improvement·. ~hare the eligibility of · proposed
improvement i· challenged, Section 570.202 of the Housing end Community
Development Act as revised from tine to time l· the final authority.
~henever possible, the most current guidelines for proportionality as
set by the U.S. Department of Housing end Urban Uevelopment Section
312 program for general property improvements (&02) versus code items
(602) vii! be used;
B. Eligible Improvement·
I. Additions ·nd alterations to increase Ch· 1Lvabll/ty or usefulness
of existing structures, such a· roans, porches, stair~ays, closets,
bathroom·, and entrance· ere eligible.
Exterior work to help pre··rye or protect structures such ·s paint-
Lng, roofing and siding, is eligible.
Interior york to make a structure more livable, such as painting,
papering, plastering, ney flooring and tile york is eligible.
'Al·0 eligible'are.repairs, restoration or replacement of impOrtant
part· of structures such as heating system·, plumbing repairs, and
built-in kitchen appliances in residential structures of' anser
Occup·nCS.
Clearance' and site prep&ration where · unit is determined not
suitable for rehabilitation and a replacement house plan has been
approved end funded.
¢. Nandntory Improvements
bzerdou· conditions width are a direct threat to the health, ufety
· nd general welfare of occupants aa defined in the UnifornHousinG
Code, Substandard Buildings as defined by Appendix A, must be corrected.
D. Ineligible Improvement·
The following improvements ire not eligible, barb·qua pits, bathhouses,
burglar &lorms, burglar protection hars, dumbwaiters, fire extinguishers,
flower boxes, greenhouses, airplane hangars, kennels, kitchen appliances
which are designed end manufactured to be freestanding ·nd are not
built-La and permanently affixed.·· on integral part of the kitchen
in · residential structure, outdoor fireplaces or hearths, penthouses,
photomurals, radiator covers or enclosures, stands, st·au cleenin$ of
exterior surfaces, svi-~Lng pool·, television antennae, tennis courts,
tree surgery, valance or cornice boards, waterproofing · structure by
pumring or injecting any substance in the earth adjacent to or ~ene3th
the basement or foundation or floors.
-7-
Section 1.06 Temporary Relocation Assistance
General
This abctiun sega forth s description of temporary relocation benefits
tO be mode available to persons and families who are displaced from
their homes as a result of the ¢ounty*s Hone Improvement Program.
Costs will be ~ared by the County and the displaced person or family,
Bo Conditions Requiring ?emporsry Re~ocstion
If Any of the foil,yin& causes or conditions occur aa a result of the
Hone Improvement Program, it nay be necessary for the persons or fam-
Ilies to relocate to another dwelling on · temporary basis:
1. Watez system ia abut off for any extended period of days for plunb~ni
'_ ~--~:'~.~" : , ~ .repairs., · ~
2. Electrical service becomes non-operable to make repairs to wiring.
Repairs would create dust and other conditions which wou~d astra-
y·ce o~er~ic condition of occupant(a).
~. Structure(s) ore to be fumigated for tar=Lee contra! end lnfes~-
.. So Hazardous liv~ng conditions would result from structura~ chsn~es
during construction.
Sanitation fsc/ligtes, e.l. tub, wash basin, gaLled.are to be nove~
· nd/or become non-operable,
Contractor required relocation of people to perform repairs on tine
upon price,
Eligibility ~equireuents
Persons or families of lo~/uoderate income who h~e occUPied the pro?-
erty for more than ninety (90) days and who must find temporary
co~ercial accommodations, are elilible for relocation benefi~s. Per-
sons or families must actually secure and occupy alternative dwelling
unit ~n order to receive payment.
Amount of Assistance
· : . ' ' ' t ' ......
Benefits tr~ll be mode avail·bls for s period determined by the Director
but not ~o exceed this contrscg get~. County will pay ~wo-thtrds of
~he cost of ~he temporary counerclsl occouodatlons up to · daily ma~mu~
amount listed on the following schedule:
;,
· ~
-8-
Number of Persons per Household Naximum Dally Allowance
1 $ 14.00
2 16.00
3 18.oo
& 20.00
$ 30.00
6 32.00
7 3&. OO
8 36.00
Depending upon the numberer persons permitted co occupy one room, the
schedule nay be adjusted to reflect actual coat°
Procedures for Securing Kelocetion Benefits
Contractor must submit letter to county requesting vacating of
unit and specifyin8 amount of tine unit must remain vacant.
Request for.vacatin$ of. premises must be approved, in uriting
by rehabilitation staff and authorized by hnaser of R/C3) or
his desl~nae.
2. Uisplacees present quote from commercial accommodation to rehab-
ilitation staff. Staff viii then verify that displacees occupy
unit and will also verify amount of quote.
· 3. Rehabilitation staff will present claim fern to Auditor-Controller
· . . vith · request for advance payment. Advance payment rill be made
-, 'payable, Jointly, to displaces and co,M~ercial accommodation.
&o Advance payment, rill be delivered to displaces by relabi~ltation
staff.
Section 1.07 ProcesSinl Lay Interest Loans
~. &. General
' ' '-' ' : .... : "Th~a section sets f0rch the steps vhich are Co be folloved ~n Cbs pro-
' "'" .... "'"'"'" 'ceas~n~ of'· rehabilitation loan.
Contact
HarketXn$ effort/atratety includes but is not limited to flyers,
phone com~untc·tion, door ~o door con,acts by Rehabtl~ation
' ~?"~f'J;= ~:""' Upon initial contact, an application vLll be delivered to the
plicanc. Upon return of the application and completion of cred~
report, an appointment viii be scheduled vith the houeovner or
property ovner for an inspection by the Rehabilitation Specielis~.
At this preliminary inspection york items viii he identified.
2. Loan'Appltcetion
teen eppll~itlon ~lll be explained to homeowner by flnancts1
counselor vho yell else esslsc in cou~letin~ necessary form~.
Preliminary Approval of Funding Authority
Completed loan application will he forwarded financial institution
and/or the state or federal asency which has funding approve!
authority to~ :
a. Verify program eligibility of the applicant.
b, Verify that applicant ia owner of property to be improved,
Verify applicant*s income and employment. In the event that
applicant ~e self-employed, the income tax returns for the pre-
vious two years w{ll be obtained.
Complete credit ~nvestigat~Ono
e. Advise county' and homeowner tn writing of approval/disapproval.
Items a through d nay'be required to he performed by the County prior
co aub~cta~ to state or federal funding agencies when appropriate.
A free tarn~te inspect~on viii be scheduled by the county for the
· ..homeowner or property o~ner applyinS for a rehabilitation loan,
The termite coupany~l! submit the inspection results to the
rehabtl~tatian special~st for inclus~on In the work write-up and
COSC esCtm~tce. '
~ork Write-up/Coat £stinace
A work wrLte-up/coat eetLnate vLll be conpLled based on the
Initial inspection and results of the termite ~nspectton report.
Homeowner will be given a copy of work write-up for approval and
will be advised of amount of loan necessary to complete rehabili-
tation work,
Installation of a smoke detector will be mandatory and will be
made available at no charge to all applicants who receive a
rehabilitation loan.
6o Bid Process
When required by regulation or determined prudent by the Section
Chief, and the homeowner does not elect to conduct h~s own bid
process, bid packages vii1 be prepared and, ~f pass,hie, bids
obtained from at least three (3) qualified contractors. "Qualified"
means those contractors who are licensed by the State of Californ~a.
who have applied to part~cipa~e in the County's Home Improvement
Program and who have received written approva~ of their participation
in the pro~ram from the H/CD Home Improvement Office. All bids
must be returned within t~,ent~ (20) calendar days. Upon receipt
of bids, the Home Improvement Section Chief or his designee v~Jl
review and rets-amend a contractor. However. respon~SBiltt? f~r
-!0-
selection of a contractor rests with the homeowner and the hone-
owner is under no obligation to abide by rehabilitation staff's
reconnendatiom. Homeowner musto howevero have · qualified contractor.
~Yhere all or part of the york ia to be performed by the homeowner,
then homeowner shall submit to the rehabllitaCiom specialist ·
list of the materials, approximate cost for these items, and a
schedule for completion by homeowner. 0ely material will be re-
imbursable, not the labor of homeowner or any assistant, This
list will be submitted co Hone Improvement Off,ce prior to prepara-
tion of bid package.
Homeowner may act on his own behalf to hire contractor(s) to cam-
piece various portion(s) of the work listed in the work write-up.
Hone·veers will identify the contractor(s) and the work items
which contractor(s) will perform. For any york which homeo~er com-
pletes, only material costs will be reimbursable, not the labor
of the hone·veer or any assistant. Homeowner she1! prove to satis-
faction of rehabilitation staff that he/she has the ability to
perform tasks to be undertaken tncludin$ coordination of con-
tractor(s) and under the same time schedule as a qualified general
contractor
Failure by pr·percy owner to comply with the aboVe requirement
Cer~tnace Chis spplLomCion
Contract Execution '. .
As a r~quirement for funding, a contract(s) or agreement(s) must
be executed. Three contracts or Agreements may be used. The first
ia the Pr·perCy Ow·errs Agreement which Is executed by County
Homeowner and used In conjunction with the prime construction con-
tract·
The second is the Prime Construction Contract between homeobmer and
contractor. The third is the owner-builder asreement which is
executed between the County and the pr·percy owner. All contracts
must also be approved In writing by the Hanaser of the Housing/
Community Development Division or his designee.
In the event Homeowner wishes to provide improvements over and
above elis~ble work provided for, or perform · portion(s) o~ the
york Jctmself, the contract(s) or agreement(s) must re~ect the
tote! cost of york to be done, what the prime and/or subcon~rac~or's
respomsibi~ittes ·re, end york he vll! perform himsel(. £v~denc~
of availab~lity of the additional funds required must be verified
and available prior to funding of loan.
Executed Contracts
County will forward executed Contract(s) or Agreement(s) to the
approved financial ~nstitution or ·pproprtate funding agency with
request for loan documents. Approved fLnancia~ institution(s)
will prepare and for~ard loan documents et rate previously deter-
mined with County and advise County of interest subsidy due ~
-11-
appropriate, PaysenCs will be In equal monthly installments the
first installment payment being due thirty (30) calendar days
note date. County obtain's borrower's signature on loan documents
and returns all documents to the financia! institution(s).
Interest Subsidy
Financial institution ~ill bill County for pre-payment of interest
subsidies as appropriate.
lO. Notice to Proceed
Property ovner rtl! be assisted in issuing notice to proceed for
construction/rehabilitation work.
11.
Loan Disbursement
a. financial inetitUtion(s)'will forward Co County, loan proceeds
in a form prescribed by the institution or agency. Disburse-
meats viii be made only after completion of inspection by re-
habilitation specialist and verification of billings by Loan
Counselor. Proceeds will be disbursed by one of the following
methods:
1). Progress Payments (dra~s)
Contractor nay not receive less than three progress pay-
menCso The progress payments shall nec exceed 90t of the
cost of such york items determined by the bid breakdown.
Progress payments due Contractor shall be paid after County
approval of receipt and verification o[ contractor's in-
voice(s) and satisfactory Release of Liens, or claims lot
Liens, by contractor, subcontractors, laborers and material
suppliers for york completed and materials installed.
i 10~ retention wilI be disbursed to contractor at expira-
tion of lien filing period, thirty-five (~$) days after
filing of Notice of Completion. This retention may increase
or decrease dependtn~ on funding source
2) One Lump Sum
?ayuent may be made in one lump sum upon completion - less
102 retention. Completion consists of passinG final in-
spection and illin8 required release forms. Re~entton
will be disbursed Co contractor at expiration of lien
filing period, thirty-five (3~)' days after filing of Sotice
of Completion.
Homeowner Advancements
Upon approval of the loan the borrower (if the borrower
is perfor~ln~ the ~ork himself) may receive sdvancenent~
to co~.er an agreed upon portion of the costs of material~
consistent with the schedule provided in cost
and work write-up. Additional advancements may b~
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12.
when york financed by prior advancements has been completed
to the satisfaction of rehabilitation staff.
b, Fund Control
Depending upon the type and level of rehabilitation york to
be conducted end the amount of loan, the County and lender
have the option oJ utilizing a fund control for the disburse-
Bent of nantes to the contractor and/or material suppliers
to cover the costs of labor and materials.
Loan Delinquencies
Depending on the requirements of the funding source, the lender
viii provide County with a weekly, monthly, or quarterly list
si delinquent borrowers. Rehabilitation staff will concoct the
borrowers. After contact v/th the borrower, the County viii con-
plete · counseling worksheet indicating the nature of the problem
and reconnended solution. A copy of this fern will be forwarded
to the Canter.
13. Appeal
A loan application which is disapproved may be resubmitted for a
ge~erred Loan or Grant described in Section l! and Section III
.... below. Subsequent rejection nay be appealed under Section
Section i.08 ?~uth in Lending' Requirements ..
The County v/Il.provide in a f°rmat required by the lender that the pro-
visions of both state end federal truth in lending iegislatlon are
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SECTION 2. DEFERreD PAYMENT LOAHS
Section 2.01 Deferred Paymment Loan·
A Deferred Payment Loan (DPL) is a zero percent (0Z) interest loan. The
loon becomes due and payable in · lmnp sun upou sole or transfer of the
property by any zeos·, instrument or probate proceedings whichever re-
sults in the shortest time for repayment. The DPL may not exceed loan
limit· set by the U.S. Department of Housing end Urban Development's
Section 312 pr·gram which l· currently $33,500. Applicants provide
security for the loan in. the lorn of · lien end & promissory note.
FundinB the DPL'e l· throuBh the Community Development Block Grant Program
and the State of California. Fund· ore loaned directly by the County to
elitible o~mer-occupanta without the involvement of a private lending
stitutiono Deferred loans ere also made in special inter agency effort·
to rehabilitate publicly o~ned residential unit·. DPL's are intended co
assist those lay/moderate income persons Dh· have no other means of financing
rehabilitation york or occupyin$ the unit(·) without this assistance.
Section 2.02 Approval of Deferred Payment Loan·
A. Rehabilitation eta£f with concurrence by the Manager H/CD makes a
determination that applicant is Iow/moderate income end with prudent
financial manaseuenC will be unable to maintain · loan repa~ent
plan. Staff vii1 also make deterninotion that improvements are
necessary for the health and safety of the client.
B. Approval Authority
DPL rill be approved or disapproved in writing by the Nanager or his
designee. The County viii notice applicant of results. An applicant
whose application for · ~L has been disapproved nay appeal to the
Board of Supervisors for a final decision.
Restriction· on Humber of Loans
The number of DFL'· which uay be made to any property o~ner under the
Hone Improvement Program is one (1). Waiver of limitation may be
granted by the Director.
Applicability of Other N annals
l~hile all DFL loan· are mode subject to the requirements of this
manual, there are special provisions iud limitation· on the making
of rehabilitation loans depending on the type of project or pr·gram
area. Consequently, in addition to the provisions of this procedures
manu·l, rehabilitation loans uede ere subject to the rules end reGu-
lations of the Cou~unity Development Block Groat Pr·Bran es established
by the U.S. Department of HousinB end Urban Development.
Section 2.03 EILgLbtlJ Requirements
A. Property Requirements
O~ner-occupled single family units are the only qualifying non-public
unica. The Director may waive this requirement in cooperative housing
rehabll~tation projects u~th quasi-governmental or nonprofit organ~-
sations, i.e.. Orange County Housin$ Authority. '
Applicant Eligibility Requirements
DFL is intended to ·void the displacement of homeowners who have no
other means of financing repairs and improvements which must be made
to their homes. DPL shall be made only Co homeowners who have no
substantial resources to make needed improvements and substantive
evidence ia on file to make such determination. In the case of ·
quasi-tovernmental or nonprofit organization, at least 7aZ of the
rental units must be guaranteed to'receive assistance for the term
of the loam.
Income LLuiCs
The income limitations ·re those set by Section 1.03 D.I.
D. ~aivers ..............
Waiver of one or more of the above eligibility requirements may be
· -.'-. approved in writing by the Director.
Section 2.0;, Applicant's Income
Ne~hod of deternin~ng applicant's income will be that noted in Section
1.03. .... '
Section 2.05 Eligible Improvements and Costa
General
This section sets forth examples of improvements and costs to be
financed vLth a
B. F~ligible Improvements and Costs
A DPL may be used to finance the cost of repairs and improvements
to comply with the Property aehabllitation Standards approved by
the Board of Supervisors as amended (Appendix A) and incipient
violations of these standards. DPL funds may also be used to finance
the cost and installation of energy conservation materials. ~o other
general property improvements are permitted. Ploblle hones are not
elisible for
l~andatory Improvements
Hazardous conditions which are a direct threat to the health, safety
and general welfare of occupants as defined in the Uniform Hous~n~
Code, Dangerous Buildings, must be corrected.
-15-
Do Ineligible Improvements
DPL may not provide
1. Ne~ construction or expansion of the size of · structure,
except for m bedroom end/or beth where family size warrants.
2. Hat,rials, ftxrures or equipment of a type or quslltF, which
exceeds thaC customarily used in properties of the same
general type as the property to be rehabilitated.
E. Insurance end Properc~ Taxes
The applicant shall maintain adequate fire and hazard insursnce
on the propertyo as required by Home Improvement Program, and keep
taxes current during tern of DPL.
Program Fees -. '. . ~." ' '
1. Recording fees
The cost of recording the deed of trust and other pertinent
documents shall be paid by the borrower omc of proceeds from
........... the loan.
.... 2. ~olic7 '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 pro-
' ce,ds, -
Tax Service Co.
Home Improvement Pro~ramm~y utilize services of a Tax Service
Company. Cost shall be paid from loan proceeds.
Haxiuum loan of 833,500 nay he made and is sub,ecs to the sam conditions
set by Section 1.02 K. of this urinal. -
Ho Escrow of Rehabilitation Funds
The applicant shell 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 Count~ of Orange, its agents or designees, to
disburse such funds to the applicant/borro~er and the contractor in
the manner set f.Fab in the contract between the applicant/borrower
and the contractor or in the contract between spplicant/borruver and
County in the case of an Owner/Builder, to insure the proper disburse-
ment of such funds. The "borrower'* shall be construed Co be any
person or other l,ga3 entit~ ubs holds title to the property being
rehabilitated with the assistance of s DPL end who is legally respon-
sible for repayment of Ch, loan. In Ch, case of multiple ownership,
the signature of every titleholder nil1 be required on all d,cwo,nas
where the stsnature of the applicant/borrower is necessary.
-16-
Section 2.06 ~empor&ry Relocation Assistance
Temporary re1ocation bene£1te that ere available to applicant receivins a
DPL are those described In Section 1.06 of th~s manual.
Section 2.07 ?rocesaLnt Deferred Payment Loans "
Processtn8 Procedures
The processins of · DPL shall be the sane es that of a subsidized,
leu incerest loan es noted Ln Section 1.0? of this procedures manual
except as follouss
1. Determinati°n of Preliu~nar7 glt~lbility
Rehabilitation staf~ will develop necessary documentation to make
· '. ..-.-. determination of applicant eligibility for · deferred loan.
. . -.- ..... . .. . .. . , ,' ..... ..~~ ..._~..~.,; -~. ~. .- .
Staf~ u~l obtain and reviev prellm~nary c~cle report and appratsa~.
3. DeCern~na~£on of F~ual
. . ...... A~cer receiv~n~ pre~ary Cic~ report' staff v~ make a
.......... reco~endaC~on regarding sppllcanCVs e~lgibi~Cy for a
: --" ..... iecounendaCion v~l~ be submitted to Director, EHA o~ his designee
'. fo~ &pproval. Applicant v~ll be edvieed,,lnvrit~ns, of flue!
· .'-. decez~ninacion. ' · · .. .........
&,' Execution of Documents
Zf ell$tblo, applicant u~ll execute note and trust deed. Addi-
Bents are executed, Crust deed will be recorded, uoce rill be
held b7 GSA bo! Estate Division and rehabilitation staff v~Ll
request deltvez~ of title insurance polic7 coverln8 amount of
loan fram title conp~ny.
Upon receipt of title insurance policy by Hone Improvement Pro-
gram staff, staff will advise E~tAaccount~n$ of 4~ounc needed
.Co ~und DPL and rehabilitation process will continue.
Tl"~tb ~n-Lendtn~ Requirements
Truth-in-lending requirements es noted in Section 1.08 of this
apply to ell DPLvo
-17-
Section 3,01 Spot Rehabilitation Loans
The Board of Supervisors has approved the spoc rehabilitation loan com-
ponent of the Home Improvement Program, Low interest loans are avail-
able to ay·er-occupants of low and moderate income living tn any contract
city and county unincorporated area. Investor-nv·era participating in
the Section 8 Hoderate Rehabilitation Program may also qualify.
Section 3,02 Proceasin~ of Spot Rehabilitation Loans
~equtrements for approval o£ spot rehabilitation loans are those noted
Section I of this manual except:
Eligibility Requirement·
Property Eligibility Requirements
A rehabilitation loan may be made to any residential property
loc·ted ~n unincorporated ·re· of the County of Orange.
A rehabilitation loan may be made to any residential property
located in · city if the ci£y participates with the County of
Orange in the urban county application for federal block grant
~undeo Additton&llye the cl~y ·nd county must have executed ·n
· treement permitting county operation o~ the spot rehabilitation
pro~ran within the city,s Jurisdiction..
~ncereat rate for spot rehabilitation loans to lov/moderate
persons shall be subject co Section 1.02
rental property, the owner uuaC asree to requirements of Section
1.02 D.2. and the interest race shall be tr. .
Eligible Improvements and Costs
A spoc rehabilitation loan may be used co finance the cost of re-
pairs and improvements as required to bring the property into co,-
pile·ce rich the Property Rehabilitation Standards approved by
Board of Supervisors aa amended. Spo~ rehabilitation loans may
also be used to £~nance the cost of repairs of incipient
of these a~andarda. No leneral property improvements are permitted.
-18-
,¢TION &. REHABILITATION GRANTS
Section go01 Rehabilitation Grants
Zn order to provide a full range of financing mechanisms for the county's
Home Improvement Program, a grant program has been established. This
program provides a grant of up to ~6.000.00 with a 20Z supplement for
teriala and labor to low 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°
Sectlou &.02 Processing Rehabilitation Grant
A. A rehabilitation grant mmy be approved subject to the same provisions
aa set forth in Section 2 except as noted below:
Applicant Eligibility Requirements
1. Applicant must execute Property Owner Grant Agreement which pro-
wides that the owner returns 100Z of the cost of materials to County
if property ia sold or title transferred within one year of agree-
menc execution and $0Z if property is sold or title transferred
between one and tva years after the execution of the agreement.
A rehabilitation grant may be used to finance the cost of repairs
and improvements to couply 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, H£nor repairs
'or improvements may be permitted if Director has approved a specific
service area street(s) for mini-grants.
The maxiuum amount of a rehabilitation grant may not exceed the
lowest amount deCeFuined by the application of the following
$6,000.00 for convention~l single family units and $$,000
for mobile hones
~here conditions warrant, the Director may increase the grant
amount, not to exceed Twenty percent (20~ - $1,200.00) of
$6,000.O0,'for lminenc hazard to the health and safety of
the applicant or the community.
$1,000,00 for minor rehabilitation (mini-grants) in approved
target area
Ho
The Director may valve Ln writing the intone requirements and resale
restriction &.02A. l provided thc a staff determination bas been made,
and the Director concurs that by providing swell, u/nor repair/
maintenance rehabilitation grants to an entire lay/moderate intone
neighborhood street, further deteriorating condition of the street
vii1 be retarded and the value of private and public investment made
under this program in the area viii be preserved.
]'~:dlc1169(2)
2-17-81
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