HomeMy WebLinkAboutReso 2000-162 - Emergency Repair Program RESOLUTION NO. 2000- 162
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
REDDING AUTHORIZING IMPLEMENTATION OF AMENDMENTS
TO THE EMERGENCY REPAIR PROGRAM
WHEREAS,the City of Redding has previously adopted an Emergency Repair Program Policy by
City Council action; and
WHEREAS,the City Council deems it to be in the best interest of the citizens of the City of Redding
that the aforementioned policy be further amended as set forth in the revised Emergency Repair Program
Policy attached hereto;and
WHEREAS,it has been determined that this matter is categorically exempt from the provisions of
CEQA.
NOW, THEREFORE, BE IT RESOLVED that these amendments to the Emergency Repair
Program Policy attached hereto are hereby approved and adopted.
I HEREBY CERTIFY that the foregoing resolution was introduced and read at a regular meeting
of the City Council of the City of Redding on the 3rd day of October, 2000, and was duly adopted at said
meeting by the following vote:
AYES: COUNCIL MEMBERS: Cibula, Kight, McGeorge, Pohlmeyer and Anderson
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
e
ROBE•T C. ANDERSON,Mayor
City of Redding
ATTEST:
f%
CONNIE S ROHMAY , y Clerk
APPROVED AS TO FORM:
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CITY OF REDDING
EMERGENCY REPAIR PROGRAM
POLICY
Prepared by:
Office of the City Manager
Housing Division
Adopted by Resolution No. 96-94
Effective May 7, 1996
Amended October 3, 2000
EMERGENCY REPAIR PROGRAM (ERP)
TABLE OF CONTENTS
SECTION PAGE
1 . INTRODUCTION 1
2. DEFINITIONS 2
3. DESCRIPTION OVERVIEW OF LOAN/GRANT PROGRAM 4
4. GENERAL ELIGIBILITY REQUIREMENTS 4
5. DESCRIPTION OF LOAN PROGRAMS 6
6. ELIGIBLE REPAIRS 9
7. INELIGIBLE REPAIRS 9
8. PROCEDURES
Financial Process 10
Rehabilitation Process 13
SECTION 1 - INTRODUCTION
As the community continues to grow, it is important to recognize the increased use of mobile
homes as principal residences for low-income households. There are over 2,241 mobile homes
in the City of Redding (1990 census). Of these, 75% to 85% are older, and half are occupied
by very-low-income persons, many of whom are elderly. Most of the older units fail to meet
minimum health and safety standards. Conventional loans for financing necessary repairs of
mobile homes are cost-prohibitive for individuals or households having low or fixed incomes.
Local housing programs have proven unable to provide adequate financial assistance for mobile
home repair needs because of difficulties in securing notes against the property, or insufficient
equity. Because mobile homes are a part of the permanent housing stock and those occupying
them are among the most needy, they should be included in the overall effort to provide
decent, affordable housing.
Equally important, are the low-income homeowners who reside in conventional housing which
requires completion of immediate health and/or safety repairs, or handicapped accessibility
improvements. These are eligible individuals and families whose needs are not being met
because provision of a conventional loan is neither mat feasible nor cost-effective.
The Emergency Repair Program (ERP) has been designed to provide affordable loans to low-
income owners of both mobile homes and conventional homes in the City of Redding, who are
otherwise unable to obtain funding resources. It has also been developed to specifically assist
disabled tenants to improve their rental units to meet their physical needs. Th-is The loan
portion of the program offers to eligible households an unsecured three percent interest (3%)
loan, up to a maximum of $2,500.00, on a one-time basis to eliminate basic health and safety
problems, and/or make necessary handicapped accessibility improvements.
Low-income, eligible tenants of rental units that need needing handicapped accessibility
improvements, only, also may apply for assistance under the Emergency Repair Program.
Tenant-based improvements may only be accomplished with matching private dollars and
approval from the respective landlord who would receive grant monies up to $2,500 for the
modification work in exchange for executing a five-year participation agreement. The grant
is offered as an incentive to install handicapped accessibility improvements for the original
tenant applicant, and then be available to future disabled tenants for at least the remaining five
years.
In those cases where it is determined that an emergency or serious health and/or safety hazard
exists, the City reserves the right to deviate from general eligibility requirements, or consider
accepting a previous borrower's further request for assistance. The funding for this program
will be provided by the Federal Community Development Block Grant (CDBG) Program.
This program is meant as a vehicle to serve a specific at-risk population, largely comprised of
the elderly and disabled, who need repairs to eliminate basic health and safety problems. It
seeks to improve and streamline the City's involvement with minor emergency repairs by
minimizing the investment risk and providing a preferable administrative cost-to-benefit ratio
for the smaller repair loan without excess title work and loan monitoring.
+It is recognized that some loans will not be repaid; however, this is offset by the realization
that from inception of the City's community development housing programs, there have
always been some funds provided for rehabilitation/repair that were in the form of grants. prierr
City of Redding Emergency Repair (ERP) Program Policy Page 1
The City of Redding shall utilize Housing Rehabilitation staff to manage and carry out day-to-
day functions of the loan program. It should be recognized that it may be necessary to make
adjustments to the program as experience dictates.
SECTION 2 - DEFINITIONS
The following definitions shall apply to this document unless another meaning is clearly
apparent from the context:
ADJUSTED GROSS ANNUAL INCOME shall mean the applicant's gross income less allowable
exclusions.
APPLICANT shall mean the person requesting assistance through any of the Housing Programs.
ASSETS shall mean the entire property of all sorts belonging to an applicant.
BORROWER shall mean the recipient of a loan assistance through any of the Housing
Programs.
BUILDING PERMIT shall mean a document issued by the City's Building Department allowing
completion of specific types of construction work.
CDBG shall mean the Community Development Block Grant Program as set forth in the
Housing and Community Development Act of 1974.
CITY shall mean the City of Redding, California, Office of the City Manager, Housing Division
CITY COUNCIL shall mean the City Council of the City of Redding.
CODE VIOLATIONS shall mean infractions against the applicable codes contained in the
I lousing Property Rehabilitation Standards. This includes the Housing Code, City of Redding
ordinances, and the various uniform building codes adopted by the City.
DEFERRED PAYMENT LOAN shall mean a loan which is not retired liquidated on an installment
basis.
DEPENDANT shall mean a member of the family (except foster children and foster adults) who
is not the family head or spouse, but is under 18 years of age, or is a person with a disability,
or is a full-time student (as defined by the U.S. Department of Housing and Urban
Development).
DISABLED shall mean incapacitated by illness or injury that substantially limits activity,
according to criteria established by the Social Security Administration or the U.S. Department
of Housing and Urban Development.
EMERGENCY REPAIRS shall address those conditions which pose a serious and immediate
health and/or safety threat to the inhabitants of a dwelling. These conditions shall include
City of Redding Emergency Repair (ERP) Program Policy Page 2
either hazardous wiring, plumbing, mechanical, structural or sanitation problems as detailed
in Chapter 10 of the current Uniform Housing Code.
EQUITY shall mean the value of a property in excess of claims or liens against it.
FAMILY shall mean all individuals who reside in a dwelling unit related by blood, marriage, or
kinship.
GENERAL PROPERTY IMPROVEMENTS (GPI's) shall mean improvements other than code
violations, incipient code violations, and required items which are eligible for program
assistance .
HOUSEHOLD shall mean all individuals who reside in . . . . .. a
dwelling unit regardless of family ties.
HOUSEHOLD INCOME shall mean adjusted gross income of all persons residing in a dwelling
unit, whether or not they are related by family ties household members.
HOUSING EXPENSES shall mean the total of principal and interest payments on all mortgages,
hazard insurance premium payments, mortgage insurance premium payments required by the
lender, property taxes, and special assessments.
HOUSING LOAN COMMITTEE (HLC) shall mean a committee consisting of three members of
the City of Redding staff, derived from the following positions: , the
Assistant City Manager, the Deputy City Manager or his designee, the City Attorney or his
designee, the Director of Planning and Community Development Services Director or his
designee and the at-rector-of Finance Officer or his designee. The Housing Loan Committee
shall be charged with approving or denying loan or grant applications consistent
with the policies of the City of Redding or the Redding Redevelopment Agency.
HOUSING QUALITY STANDARDS shall mean those HUD regulations set forth in the HUD
Section 8 Rental Assistance Program which details a basic level of acceptable housing.
IN-C-GME/HOUSING EXPENSES RATIO shall mean the ratio of the total adjusted gross income
of all household members to housing expenses.
INTEREST shall mean a charge for borrowed money that is repaid along with the amount of
the loan.
LIEN shall mean a form of an encumbrance which uses property to secure over
the time of payment of a debt or discharge of an obligation. Example: judgments, taxes,
mortgages, deeds of trust.
LOW INCOME shall mean those an incomes o that does not exceed eighty percent
(80%) of the Redding area-wide median income as established by the latest published
guidelines from the U. S. Department of Housing and Urban Development (HUD).
MOBILE HOME shall mean a transportable dwelling that is not self-contained, and that is used
City of Redding Emergency Repair (ERP) Program Policy Page 3
as a permanent residence, is connected to utilities, with or without a permanent foundation.
� . :. . . . . ... •• •
I - - - . . : - - . , - -, - . - : . - ., : - . • - : .
MORTGAGE shall mean an instrument recognized by law by which property is hypothecated
to secure the payment of a debt or obligation; procedure for foreclosure in event of default,
is established by statute.
OWNER-OCCUPANT shall mean an individual or family who occupies and owns, or who is
buying a unit of residential property and will occupy such residence.
PROMISSORY NOTE shall mean a written promise to pay or repay a specified sum of money
at a stated time or on demand.
REHABILITATION COST shall mean the total cost of repairs and improvements, and other
costs for rehabilitation of the property to be incurred by the applicant, that are eligible for
inclusion in a rehabilitation loan or grant.
UTILITIES shall mean gas, electricity, water, sewage disposal and refuse collection.
VERY-LOW INCOME shall mean those incomes which do not exceed fifty percent (50%) of the
Redding area-wide median income, as established by the latest published guidelines from the
U.S. Department of Housing and Urban Development (HUD).
SECT/ON 3 - DESCRIPTION OVERVIEW OF LOAN/GRANT PROGRAM
The Emergency Repair Program (ERP) Loan shall consist of tvvta three types of assistance:
A Deferred-Payment Loan for Elderly and Disabled: A loan for eligible homeowners arrd
ten-ants over 60 years of age or disabled, that requires no monthly payments and is due
only upon sale of the home, transfer of title, rental of the home, when the borrower no
longer maintains the home as the principal place of residence, or when the borrower is
able to repay.
A 15-Year Deferred Payment Loan: A loan for eligible borrowers, as established in Section
4 of this document, that requires no monthly repayment, but one that is due upon sale
of the home, transfer of title, rental of the home, when the borrower no longer maintains
the home as the principal place of residence, or at the end of 15 years if the borrower is
able to repay.
Grant Assistance to Owners of Rental Housing Units: This grant is intended to assist
disabled tenants in improving their rental unit to meet the physical needs of both the
current occupant and future occupants.
SECT/ON 4 - GENERAL ELIGIBILITY REQUIREMENTS
A. Location: Rehabilitation loans or grants will be made only in neighborhoods within
Redding city limits, and which are designated as Residential on the Redding General Plan.
City of Redding Emergency Repair (ERP) Program Policy Page 4
B. Borrowers/Grantees: To be eligible for a rehabilitation loan or grant, the applicant must
be an owner-occupant of the home to be repaired, or a landlord whose tenant needs ins
only handicapped accessibility improvements.
C. Income/Housing Expenses: The applicant, or targeted tenant must meet both of the
following conditions:
1 . Household adjusted annual gross income . . - - - - - -••of 1374 shall be at or below the eighty percent (80%) area-wide median income level
as detailed in the guidelines as most recently published by the U. S. Department of
Housing and Community Development. }_
1 person $10,500
2 persons $22,500
3 persons $25,050
4 persons $27,850
5 persons $30,050
6 persons $32,300
7 persons $34,500
0 or more $36,750
2. The applicant's ratio of monthly housing expense to adjusted gross monthly income
shall be not more than 25 twenty-eight percent (28%), except for those applicants
that qualify for deferred-payment loans for the elderly/disabled, or tenants receiving
grant assistance for handicapped accessibility improvements .
D. Determination of Adjusted Gross Income: In calculating adjusted gross income, all of the
income of the applicant or applicants household (including all adults residing in the unit),
whether received in cash or in kind shall be considered, except for the following specific
exclusions exceptions which are consistent with the Section 8 Rental Assistance Program:
1 . Social Security monthly educational benefits to the children of an individual entitled
• ••- .•• • • • • : .: . • : , : : ,.: : • - - . : .
a. Unmarried.
b. Under age 18.
c. A full-time student under age 22.
1 . Earned income from a minor child under the age of 18.
2. $300 Any amount above $480 of annual earned income for a full-time student who
is 18 years of age or older .
3. Foster care payments.
4. One-time, lump-sum additions to family assets such as inheritances, insurance
payments (including payments under health and accident insurance and worker's
compensation), capital gains, and settlement for personal or property losses.
5. Casual, sporadic, or irregular donations from friends or family.
City of Redding Emergency Repair (ERP) Program Policy Page 5
6. Amounts that are specifically for, or in reimbursement of, the cost of medical
expenses that do not result in new income to the applicant.
7. Annual amounts paid for alimony or child support that are received only sporadically,
provided that the applicant certifies:
a. the payments are not received regularly; and The child support is required by
court order.
b. all reasonable legal actions have been taken to collect such payments. The
required child support payments must be paid and received-regtrtarly.
7. Amounts of educational scholarships paid directly to the student or the educational
institution.
8. Payments under the G.I. Bill
9. Relocation payments made pursuant to Title II of the Federal Uniform Relocation and
Real Property Assistance Policies Act of 1970.
E. Use: An Emergency Repair Program rehabilitation loan shall be used only for repairs
related to health and/or safety, or necessary handicapped accessibility improvements.
F. Housing Expense: To determine the ratio set forth in Paragraph C2 in this section, the
following expenses shall be included in housing expense:
1 . Mortgage payments, including principal and interest.
2. Rent, where applicable (including mobile home space rent).
3. Mortgage insurance premiums.
4. Service charges.
5. Hazard insurance premiums.
6. Pe z Property taxes and special assessments.
7. Maintenance and repairs.
8. Utilities
G. Credit: A rehabilitation loan will be approved only if the applicant's credit record does not
show substantial disregard for former or existing obligations. Analysis of the borrower's
credit record may include consideration of special circumstances such as health trauma,
divorce, burial obligations, etc.
I. Assets: In order to qualify for a rehabilitation loan, the applicant must be unable to
accomplish rehabilitation through conventional financing or use of his or her own assets
as determined by the Housing Loan Committee. Evaluation of assets shall focus on the
borrower's specific circumstances including both present and future medical/physical
needs, earning capacity and family conditions.
SECTION 5 - DESCRIPTION OF LOAN/GRANT PROGRAMS
A. DEFERRED-PAYMENT EMERGENCY REPAIR PROGRAM (ERP) LOAN
1. Purpose. The purpose of a deferred-payment Emergency Repair Program (ERP) Loan
is to pay the costs of minimum health and/or safety housing repairs for eligible, low-
City of Redding Emergency Repair (ERP) Program Policy Page 6
income homeowners and tenants, particularly the elderly or disabled, without
increasing current monthly housing expenses.
2. Amount. The amount of an Emergency Repair Program Loan shall not exceed the
actual and approved cost of all necessary repairs up to a maximum of $2,500.00.
3. Repayment. If not repaid earlier, the loan shall become due and payable upon sale
or transfer of the property, the death of the owner(s), or when the property is no
longer the owner(s)'s principal place of residence, whichever first occurs. for tenant-
. : . All interest earnings shall become forgiven upon
repayment of the full principal loan balance when received on time. Interest earnings
shall not be forgiven on delinquent loans which do not meet City payoff demand
conditions.
4. Terms and Conditions:
a. The entire amount of an Emergency Repair Program Loan shall be conveyed by
a statement of understanding and an unsecured promissory note.
b. The borrower shall have hazard insurance at the time
of signing loan documents, and will agree to maintain it. The borrower shall
provide evidence that property taxes are current; or for mobile homes, that
registration is current.
c. Prior to execution of a tenant-based loan, the prospective borrower shall secure
cel- An Emergency Repair Program Loan shall bear interest at the rate of three
percent (3%) interest per year.
de- Loan amounts shall be used towards the cost of rehabilitation of the home as it
relates to handicapped accessibility improvements and Housing Quality
Standards (HQS) detailed in Section 4 of this document.
B. 15-YEAR EMERGENCY REPAIR PROGRAM (ERP) LOAN
1. Purpose. The purpose of an Emergency Repair Program (ERP) Loan is to pay the
costs of minimum health and/or safety housing repairs for those homeowners whose
income is so low as to prohibit a monthly payment.
2. Amount. The amount of an Emergency Repair Program Loan shall not exceed the
actual and approved cost of all necessary repairs up to a maximum of $2,500.00.
3. Repayment. If not repaid earlier, the loan shall become due and payable upon sale
or transfer of the property, the death of the owner(s), when the property is no longer
the owner(s)'s principal place of residence, or at the end of 15 years, whichever first
occurs. All interest earnings shall become forgiven upon repayment of the full
principal loan balance when received on time. Interest earnings shall not be forgiven
City of Redding Emergency Repair (ERP) Program Policy Page 7
on delinquent loans which do not meet City payoff demand conditions.
4. Terms and Conditions:
a. The entire amount of an Emergency Repair Program Loan shall be conveyed by
a statement of understanding and an unsecured promissory note.
b. The borrower shall have hazard insurance at the time
of signing loan documents, and will agree to maintain it. The borrower shall
provide evidence that property taxes are current; or for mobile homes, that
registration is current.
c. An Emergency Repair Program Loan shall bear interest at the rate of three
percent (3%) interest per year.
d. Loan amounts shall be used towards the cost of rehabilitation of the home as it
relates to handicapped accessibility improvements and Housing Quality
Standards (HQS) detailed in Section 6.
C. GRANT ASSISTANCE TO OWNERS OF RENTAL HOUSING UNITS:
1. Purpose. The purpose is to establish a procedure and policy for the allocation of
grants to owners of rental housing units to assist eligible disabled tenants meet their
physical needs, as well as providing handicapped accessibility improvements to
subsequent disabled occupants.
2. Amount. The maximum amount to be expended for modification of each rental
housing unit shall be $2,500. However, the City Housing Division is authorized to
expend up to $4,000 for serious and compelling reasons with Housing Loan
Committee approval. No funds will be paid for improvements that are made prior to
approval of an application for such grant funding. No funds will be paid for
improvements of a substandard unit until the owner brings the property up to the
standards of the Uniform Housing Code.
3. Terms and Conditions:
a. The tenant must have a permanent disability that justifies the proposed
improvements.
b. The owner (or authorized agent) of the property must make a good faith and
diligent effort to rent the unit to persons with a disability for a minimum of five
years. In the event the initial tenant vacates the premises and the owner does
not attempt to market the unit to a person with a disability, he/she shall be
ineligible for future assistance through the program.
c. The initial tenant with a disability must meet applicable General Eligibility
Requirements as detailed in Section 4 of this document..
d. Grant amounts shall be used towards the cost of rehabilitation of the home as
it relates to handicapped accessibility improvements and Housing Quality
City of Redding Emergency Repair (ERP) Program Policy Page 8
Standards (HOS) detailed in Section 6 of this document.
SECTION 6 - ELIGIBLE REPAIRS
The following repairs are eligible costs for a rehabilitation loan under the Emergency Repair
Program.
1. Leaky Roofs.
2. Damaged or Deteriorated Windows.
3. Plumbing.
4. Peeling Paint on Exterior and Interior Surfaces.
5. Electrical Hazards. Examples of electrical hazards include: Broken or frayed electrical
wiring; bare wires not covered by rubber or plastic insulation; loose or improper wire
connections to outlets; light fixtures hanging from electric wire with no other firm support;
missing or cracked cover plates on switches or outlets; exposed fuse box connections;
overloaded circuits evidenced by frequently "blown" fuses. Any rubber-coated or plastic-
coated electrical wiring (romex) in a room or on the exterior that is subject to
possible physical abuse or wear.
6. Security. This may include installation of operable locks or security devices on exterior
windows and doors.
7. Defective Stove, Range, or Refrigerator.
8. Water Heater in Need of Temperature-Pressure Relief (Pop-Off) Valve and Discharge Line.
9. Damaged or Deteriorated Flooring.
10. Weatherization/Energy Conservation. This may include improvements to exterior doors,
air conditioning and cooler-vent openings, walls, floors and ceilings, to ensure weather-
tight conditions. Any cracks, holes, gaps, or openings that allow air or moisture
infiltration into a living space may be addressed.
11. Unsafe Handrails, Stairs and Porches.
12. Substandard Heating/Cooling.
13. Adaptable Housing Repairs. Adaptable housing repairs (such as grab bars, modified
counters, doorways, ramps, fixtures and facilities) may be eligible modifications for
handicapped or disabled home occupants.
14. Lead-Based Paint Abatement: Consistent with program regulations and upon Housing
Loan Committee approval, HOME or CDBG funds may be used for lead-based paint
evaluation and reduction costs. The form of assistance may include interest-bearing
loans, non-interest-bearing loans, interest subsidies, deferred-payment loans, grants, or
other forms of assistance determined to be appropriate for the purposes of the program.
City of Redding Emergency Repair (ERP) Program Policy Page 9
In cases where the use of grant funds are deemed necessary by the HLC, staff will
monitor protects to ensure that the following guidelines are met:
a. Grant expenditures shall only cover increased costs attributable to lead-based hazard
evaluation and reduction activities;
b. The amount of grant funds available shall be limited to $7,500 of the total
rehabilitation project cost, unless otherwise approved by the HLC; and
c. Allocation of grant funds for lead-based hazard evaluation and reduction activities
does not increase the value of the home.
SECTION 7 - INELIGIBLE REPAIRS
The following repairs are not eligible costs for rehabilitation work under the Emergency Repair
Program.
1 . New construction, substantial reconstruction, expansion of the structure, or the finishing
of unfinished spaces unless otherwise stated in this policy.
2. Materials, fixtures, equipment or landscaping of a type and quality which exceeds
adequate service or that is not customarily used for properties of the same general type.
3. Refinancing the existing debt on property or back delinquent property taxes.
4. A rehabilitation loan shall not be used to finance or obtain any of the following items:
- Barbecue pit
- Bathhouse
- Burglar alarm
- Fire extinguisher
- Greenhouse
- Hot tub/spa
- Kennel
- Photo mural
- Swimming pool
- Television antenna
- Tennis court
- Valance or cornice board
5. Other "luxury" items.
SECTION 8 - PROCEDURES
FINANCIAL PROCESS
Process Procedures
Initial Contact: Advise applicant of general objectives and benefits of
the program.
Get Obtain information from applicant (Use Initial
Telephone Survey, Form No. ERP.1).
City of Redding Emergency Repair (ERP) Program Policy Page 10
- Live in city limits?
- Live in residential zoning?
- Owner-occupied?
- Applicant's income.
- Any assets that would disqualify applicant?
- Elderly or disabled? If yes, applicant may need
adaptable housing products or aids.
- Who is owner of record?
Application: Assist owner in completing all necessary forms.
- City of Redding ERP Loan Application, Form No.
ERP.2.
- Copy of current mobile home registration.
- Copy of most recent property tax statement.
- Medical verification of need (as required).
- Verification of SSI-SDI.
Request Initial Inspection Deficiency
List With Cost Estimate: Request inspection by Rehabilitation Inspector
assigned Housing Specialist (SEE Rehabilitation
Procedures Section) when all verifications return and
all applicant forms are completed.
Assemble Loan File: Assemble loan file and evaluate for completeness.
- Completed applications.
- Current mobile home registration.
- Credit report.
- Property tax statement.
- Income verification of SSI-SSP (or other).
- Deficiency List and Cost Estimate.
- Assign project loan number
Request Contract and Bid: Request contract and bid from homeowner or landlord.
(Owner to have solicited bid from contractor of his/her
choice.) (SEE Rehabilitation Process Section)
City Housing Loan Committee Review
and Approval: Submit loan package and photo of home to Housing
Rehab Program Supervisor for review and approval by
City Housing Loan Committee the Deputy City
Manager, or the Housing Loan Committee when
applicable.
Assigned Housing Specialist will
prepare Rehab Loan Narrative for the Deputy City
Manager or the Housing Loan Committee.
Assemble Loan Documents: Assemble and prepare loan documents. This includes
the following:
City of Redding Emergency Repair (ERP) Program Policy Page 11
- Statement of Understanding
- Promissory Note
- Loan Disclosure Statement
- Memo to Finance Department
- Terms and Conditions
Loan/Grant Settlement: Arrange appointment for all signatory parties to sign
loan/grant documents and review construction
procedures.
- Review all loan/grant documents with
applicant(s).
- Obtain signatures of applicant(s) for all
appropriate forms with notarization as required.
- Provide applicant with copy of all documents.
- Indicate to applicant that funding is secured for
the rehabilitation work and that he/she may now
sign an agreement with the contractor and
commence work.
- Indicate to applicant that it is the responsibility of
the contractor to facilitate and complete the
permit process with the State HCD Office
(Housing and Community Development, Codes
and Standards, Registration and Titling, 2986
Bechelli Lane, Suite 201 , Redding, California
96002, (530) 224-4815) or City of Redding
Building Division, as necessary.
Memo to Finance: (SEE Appendix for Instructions for Memo to Finance
Department)
Work Underway: (SEE Rehabilitation Procedures Section)
Construction Contract: The construction contract is the responsibility of the
contractor and shall be provided and explained to the
homeowner or landlord prior to submission to the
Deputy City Manager or the Housing Loan Committee.
Completion of Construction: (SEE Rehabilitation Procedures Section)
Disbursement of Funds: Upon acceptance of the completed work by the
homeowner or landlord, City staff may release the
check for the approved loan amount to the contractor.
Notice of Completion: It shall be the responsibility of the homeowner or
landlord to complete and record a notice of completion
with the Shasta County Recorder if he/she desires to
obtain verification of material supplier or subcontractor
payments by the general contractor.
City of Redding Emergency Repair (ERP) Program Policy Page 12
Final Approval by the State
HCD Office When Applicable: On those rehabilitation projects requiring a permit with
the State Housing and Community Development
Department, it is the responsibility of the contractor to
obtain final approval for the completed work.
Completing the File: Upon disbursal of all funds, the Housing Staff shall
complete all necessary documents to close out the
file.
Final Letter to Borrower: Send letter with statement of disposition of funds,
notifying applicant of completion date and call-back
procedures.
REHABILITATION PROCESS
Process Procedures
Receive Request for Initial
Inspection: Upon receiving a request for property inspection from
the assigned Housing Specialist, set up
owner file:
- Attach file checklist.
- Obtain copy of Assessors Parcel Map (confirm
location of property within city limits).
Arrange Appointment for Initial
Inspection: Make appointment with owner to inspect property.
Initial Inspection: Explain Emergency Repair Program and process.
Conduct inspection of property utilizing Section 8
Dwelling Unit Inspection Report to record deficiencies.
Deficiency List and Cost Estimate: Finish deficiency list and cost estimate for applicant
complete with letter of explanation.
- Give copy of deficiency list and cost estimate to
Rehab
r:_____ assigned Housing Specialist.
- Send letter of explanation to applicant.
Review Deficiency List with Owner: Review repair items and any significant problems
concerning the project.
- Review bid process with applicant and present
him/her with Contractor's List if requested.
- Note: Applicant is responsible for securing bid
from licensed contractor to perform the work.
Applicant is also responsible for communicating
the Emergency Repair Program process to the
City of Redding Emergency Repair (ERP) Program Policy Page 13
contractor (explanation sheet will be provided).
Loan/Grant Approval Process: Put rehabilitation file in order while awaiting approval
by the Loan Committee. Complete Historic and
Architectural Assessment Form.
Loan/Grant Settlement: Upon signing the loan/grant documents, the applicant
is now ready to sign the construction contract with
the contractor. Work may now commence.
Work Underway: Borrower/contractor responsibility.
Completion of Construction: Borrower/contractor responsibility.
Final Approval by the State HCD
Office When Applicable: Borrower/contractor responsibility.
Final approval by the City of Redding
Building Division: Borrower/contractor responsibility.
Final Approval Inspection by the
Housing Division: Borrower shall contact the Housing Division for final
l inspection.
c:\myfiles\docs\EmerRP.Policy Last revised 9/11/00
City of Redding Emergency Repair (ERP) Program Policy Page 14