HomeMy WebLinkAboutReso. 1989-270 - Approving the mobilehome repair program policy '
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RESOLUTION NO. 8'7'.270
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING THE
MOBILEHOME REPAIR PROGRAM POLICY.
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WHEREAS, the City has allocated $10,000.00 in CDBG funds for the Mobile-
home
Repair Program in FY 1988-89 and $10,000.00 for 1989-90; and
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WHEREAS, the Department of Planning and Community Development of the City
of Redding has prepared and submitted a Mobilehome Repair Program Policy; and
WHEREAS, the City Council has reviewed the attached Mobilehome Repair
Program Policy; and
WHEREAS, the City Council has determined that it would be in the best
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interest of the residents of the City to continue the Mobilehome Repair
Program.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Redding
that the Mobilehome Repair Program Policy attached hereto as "Exhibit A," is
hereby approved and adopted as the Mobilehome Repair Policy to be used by the
Department of Planning and Community Development of the City of Redding.
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 15th day
of August , 1989, and was duly adopted at said meeting by the
following vote:
AYES: COUNCIL MEMBERS: Buffum, Dahl , Fulton, Johannessen, & Carter
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
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L� S I..
If l SCOTT CARTER, Mayor
ATTEST:
ETHEL A. NICHOLS, City Clerk
FORM APPROVED:
Ii RANFALL A. HAYS, Cit At rney e..44
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EXHIBIT "A"
CITY OF REDDING
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MOBILEHOME REPAIR PROGRAM � I
POLICY
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Prepared by:
Department of Planning & Community Development
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MOBILEHOME REPAIR PROGRAM
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CONTENTS
SECTION PAGE
1 - INTRODUCTION 1
2 - DEFINITIONS 2
3 - DESCRIPTION OF GRANT PROGRAM 4
4 - GENERAL ELIGIBILITY REQUIREMENTS 5
5 - ELIGIBLE REPAIRS 6
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6 - INELIGIBLE REPAIRS 8
7 - PROCEDURES 9
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SECTION 1 - INTRODUCTION
There are over 1,000 owner-occupied mobilehomes in the City of
Redding ( 1980 census) . Eighty-five percent of these are at least
19 years old. Of the total units, 55% are occupied by low-income
families, many of which are elderly. Most, if not all of the � I
older units, fail to meet minimum health and safety standards.
Market lending rates are cost prohibitive for low-income families
ii as a means of financing repairs in the mobilehome market. Local
housing programs are typically unable to provide adequate
financial assistance to address mobilehome repair needs, often
because of difficulties in securing notes against the property or
insufficient equity.
The Mobilehome Repair Program (MRP) has been designed to provide
grants to low-income mobile homeowners in the City of Redding who
are typically elderly, on a fixed income, or needy. The program
will assist those families who are owner-occupants of mobile-
homes, and are unable to obtain rehabilitation funding resources.
This program offers a maximum $1,500g'
grant to eligible families � I�
on a one-time basis to meet rehabilitation needs and eliminate
basic health and safety problems. The City reserves the right to
re-evaluate a previous grantee's request for additional
assistance in the future in those cases where it is determined
that an emergency or serious health/safety hazard exists.
In order to administer this program, the City of Redding shall
utilize Housing Division staff to manage and carry out day-to-day
functions of the grant program. It should be recognized that it
may be necessary to make adjustments to the program as experience
dictates.
As the community continues to grow, it is recognized that the
importance of a mobilehome as a principal residence for lower-
income households also increases. This fact supports the
consideration that the mobile home is part of the community's
permanent housing stock and should be included in the overall
effort to provide decent, affordable housing.
It is the intention of this program to utilize a grant as the
primary funding mechanism coupled with supplementary financing
li arranged through the State of California Supplemental Security
Income program. It is also hoped that the program will be
liberal enough in scope and terms to help families and
individuals of lower to moderate income, yet conservative enough
to ensure the security of the city' s investment and be acceptable
to a broad cross-section of the community.
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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. } I
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AMORTIZED LOAN shall mean a loan liquidated on an installment
basis. •
ASSETS shall mean the entire property of all sorts belonging to
an applicant.
BORROWER shall mean the recipient of a loan.
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CDBG shall mean the Community Development Block Grant program as
set forth in the Housing and Community Development Act of 1974. j
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THE "CITY" shall mean the City of Redding, California, Department
of Planning and Community Development.
CITY COUNCIL shall mean the City Council of the City of Redding.
CODE VIOLATIONS shall mean infractions against the applicable
codes contained in the Housing Rehabilitation Standards.
11 CREDIT shall mean financial or commercial trustworthiness, as ,
determined by the applicant' s previous performance of the payment
of debts.
DEED OF TRUST shall mean deedI �
given by borrower to trustee to be
held pending fulfillment of an obligation, which is ordinarily
repayment of a loan to a beneficiary.
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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.
FAMILY INCOME shall mean adjusted gross income of all family
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members. ,
GENERAL PROPERTY IMPROVEMENTS shall mean improvements other than
code violations, incipient code violations, and required items Ii
which are eligible for rehabilitation loan funds. I
GRANT shall mean a financial contribution for the particular
purpose of rehabilitating property through the Mobile Repair
Program.
GRANTEE shall mean that owner of record receiving the financial II
contribution for the purpose of rehabilitating his/her property
through the Mobile Repair Program.
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GRANTOR shall mean the provider of the financial contribution to
rehabilitate said property through the Mobilehome Repair Program.
HOUSEHOLD shall mean all individuals who reside in or have an
ownership interest in a dwelling unit regardless of family ties.
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.
INCOME/HOUSING EXPENSES shall mean the ratio of adjusted gross
income to housing expenses.
LIEN shall mean a form of encumbrance which usually makes
property security for the payment of a debt or discharge of an
obligation. Example: judgments, taxes, mortgages, deeds of
trust.
LOAN COMMITTEE shall mean a committee consisting of four members
of the City Staff, i.e. , the Director of Planning and Community
Development, the City Manager, the City Attorney, and the Housing
Administrator, appointed by the City Council to review and
approve or disapprove loan and grant applications. The Loan C '
Committee shall be charged with approving or disapproving grant
applications consistent with the policies of the Mobilehome
Repair Program.
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LOW INCOME shall mean those incomes which do not exceed 80
percent of the median income as established by the U.S.
Department of Housing and Urban Development.
MOBILEHOME shall mean a transportable dwelling with a minimum
ji dimension of 8 ' x 40 ' that is used as a permanent residence,
connected to utilities, with or without a permanent foundation.
MODERATE INCOME shall mean those incomes which exceed 80 percent
but less than 120 percent of the median income as established by
the U.S. Department of Housing and Urban Development.
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SECTION 3 - DESCRIPTION OF GRANT PROGRAM
A. Grant Features
1. Purpose. The purpose of the Program is to provide
lower-income owner-occupants of mobilehomes with a
grant to rehabilitate the structures in order to
eliminate health and safety hazards.
2. Eligibility. In order to qualify for a grant the
applicant must meet all General Eligibility
II Requirements in SECTION 4.
3. Amount. The maximum amount allowed for rehabilitation
needs shall be $1, 500 for a single-family dwelling.
Families may be eligible for additional assistance from
the County Special Circumstance Program in the amount
of $1,500 maximum.
4. Terms & Conditions.
Grant amounts shall be used towards the cost of rehab-
ilitation of the mobile home as it relates to Housing
Quality Standards (HQS) detailed in SECTION 5. ]
(a) Mobile home owners shall be responsible for
securing bids from licensed contractors based on
deficiency reports and cost estimates provided by
city staff.
(b) Mobile home owners shall be responsible for
executing contracts for work with licensed
contractors.
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(c) Mobile home owners shall be responsible for
acceptance of contract work and payment to
contractors.
(d) Contract work shall be completed in an expedient
manner (typically 30 days) .
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(e) The City shall provide assistance in carrying out
the above items in those cases where the owner is
unable to perform the tasks due to a handicap or
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other incapacity.
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SECTION 4 - GENERAL ELIGIBILITY REQUIREMENTS
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I!I A. Location
Mobilehomes must be located within Redding city limits in
order to be eligible and be located within an area
designated as Residential on the Redding General Plan.
B. Characteristics of Grantee
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1. Mobilehome owners shall meet income guidelines as
defined below. f
2 . Mobile units must demonstrate a definite need for
rehabilitation as detailed by city staff on the
DWELLING UNIT INSPECTION REPORT.
3. Mobilehome owners may be selected and prioritized for
approval based on applicant' s need.
C. Income Guidelines
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The income of a mobilehome owner shall be within the limits
of the most recent income guidelines published by the United
States Department of Housing and Urban Development for low-
income families.
D. Determination of Adjusted Gross Income
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1. When calculating the adjusted gross income of an
applicant, the guidelines outlined in the City of
Redding Rehabilitation Loan Policy under Section 3
shall be followed.
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SECTION 5 - ELIGIBLE REPAIRS
The following repairs are eligible costs for a rehabilitation
grant under the Mobilehome Repair Program:
1. LEAKY ROOFS. All roof systems shall be weathertight and
free from unsound or hazardous conditions.
2. DAMAGED OR DETERIORATED WINDOWS. All windows shall be
it openable and meet applicable egress, light and ventilations
standards. Missing or broken panes shall be replaced.
Serious drafts or moisture entry shall be eliminated.
3. PLUMBING. All mobilehomes must have hot and cold running I �
water and a properly working sewer system. Any serious
leaks at fixtures or within the plumbing system shall be ;f
repaired.
4. PEELING PAINT ON EXTERIOR AND INTERIOR SURFACES. All
-exterior and interior surfaces shall be free from cracking,
scaling, peeling, chipping, and loose paint, or adequately ! ,
treated, or covered to prevent exposure to lead-based paint
hazards.
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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 jl
plates on switches or outlets; exposed fuse box connections;
overloaded circuits evidenced by frequently "blown" fuses.
Any rubber or plastic coated electrical wiring (romex) in a
room or on the exterior that is accessible to possible
physical abuse or wear shall be considered an electrical
hazard. Such wiring should be enclosed in flexible conduit,
EMT (encased metal tube) , liquid-tight conduit, or other
approved material.
6. SECURITY. All exterior windows and doors shall have
operable locks or security devices.
7. DEFECTIVE STOVE OR RANGE. Both an oven and a stove (or
range) with top burners must be present and working.
Microwave appliances are acceptable substitutes for a I
non-working oven. I
8. ABSENCE OF TEMPERATURE-PRESSURE RELIEF (POP-OFF) VALVE AND
DISCHARGE LINE ON WATER HEATER. All water heaters must have
a temperature-pressure relief valve which will operate when
•! the temperature or the pressure in the tank is too high.
The discharge line shall be constructed of 3/4-inch
galvanized steel or copper pipe and shall be piped to the
outside of the structure as per code.
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9. DAMAGED OR DETERIORATED FLOORING. All carpeting, sheet
vinyl and tile flooring shall be free of holes, cracks,
tears, or missing sections that represent a tripping hazard
or unsafe condition.
10. IMPROPER WEATHERSEAL. All exterior doors, air conditioning
and cooler vent openings, walls, floors and ceilings, shall
be weathertight. Any cracks, holes, gaps, or openings that '
allow air or moisture infiltration into a living space shall
be eliminated. �.
11 . UNSAFE HANDRAILS, STAIRS AND PORCHES. All stairs, rails,
porches and balconies shall be sound and free from hazards.
Any section(s) with missing steps, broken or rotting
material or absence of handrails shall be repaired.
12. SUBSTANDARD HEATING/COOLING. All mobile units shall
provide
adequate heating and cooling to meet the Uniform Housing
Code and City of Redding Rehabilitation Standards.
13. ADAPTABLE HOUSING REPAIRS. Adaptable housing repairs (such
as
grab bars, modified counters, doorways, fixtures and
facilities) may be eligible modifications for handicapped or
disabled mobilehome occupants.
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SECTION 6 - INELIGIBLE REPAIRS
The following repairs are not eligible costs for rehabilitation
work under the Mobile 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 taxes. ! I
4. A rehabilitation grant shall not be used to finance or
obtain any of the following items:
- Barbecue pits
ii - Bathhouses
- Burglar alarms
- Fire extinguishers
- Greenhouses
- Hot tubs/spas
- Kennels
- Photo murals
- Swimming pools
- Television antennae
- Tennis courts
- Valance or cornice boards
5. Other "luxury" items.
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SECTION 7 - PROCEDURES
FINANCIAL PROCESS
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Process Procedures
Initial Contact: Advise applicant of general objectives
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Get information from client (Use Initial
Telephone Survey, Form No. MRP. 1) .
- Live in city limits?
- Live in residential zoning?
- Owner-occupied?
- Client' s income. ( ,I
- Any assets that would disqualify
client?
- Elderly or disabled? If yes,
client may need adaptable housing
products or aids.
- Who is owner of record? I '
Application: Assist owner in completing all necessary � I
forms.
- City of Redding MRP Grant
application, Form No. MRP. 2 .
- Shasta County Special Circum-
stances Program application, Form
SSP 4A.
- copy of current mobilehome
registration.
- copy of most recent property tax
statement. ;
- medical verification of need (as
required) .
- verification of SSI-SSP.
Request Initial Inspection
Deficiency List With
ii Cost Estimate: Request inspection by Rehab Inspector
when all (SEE REHAB PROCEDURES SECTION)
li verifications return and all client
forms are completed. (SEE REHAB PROCESS
SECTION) .
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ji Assemble Grant File: Assemble
grant file and evaluate for
completeness.
- Completed applications.
- current mobile home registration.
- property tax statement.
- income verification of SSI-SSP
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- Deficiency List and Cost � I
Estimate.
- Obtain Project Grant No. from
Finance Dept.
Request Contract and
Bid: Request contract and bid from mobilehome
owner. (Owner to have solicited bid
from contractor of his/her choice. ) SEE
REHAB PROCEDURES SECTION.
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Submit SCP Application
to County for Approval: When bid is obtained, submit Special
Circumstance funding application package
(if required) to Shasta County Social
Services Department for approval.
City Loan Committee
Review and Approval: Pending approval by the county of SCP
funding, submit grant package and photo
of mobilehome to Chief Housing Counselor
for review and approval by City Rehab j
Loan Committee.
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- Shasta County Social Services II
Dept. will confirm funding
approval with phone call
and follow-up copy of Notice of ' I
Action.
- Rehab Finance Specialist will
prepare Rehab Grant Narrative for
Loan Committee.
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Assemble Grant
Documents: Assemble and prepare grant documents. , i
This includes the following:
- Grant Agreement.
- Statement of Understanding iI
e appointmentI '
Grant Settlement: Arrange for all signatory
parties to sign grant documents and '
review construction procedures. jI
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- Review Grant Agreement and
Statement of Understanding with
client.
- Provide client with copy of both
documents.
- Indicate to client that funding
is now secured for the rehab work
and that he/she nay now sign an
agreement with the contractor and I '
commence work.
- Indicate to client that it is the
responsibility of the contractor
to facilitate and complete the
permit process with the state HCD
office (Housing and Community
Development, 405 Redcliff Drive,
Redding, CA. 96002, phone
224-4815) .
Work Underway: � I
(SEE REHAB PROCEDURES SECTION)
Construction Contract: The construction contract is the
responsibility of the contractor
and shall be provided and
explained to the mobilehome owner !
prior to Loan Committee.
Completion of Construction:
(SEE REHAB PROCEDURES SECTION)
Disbursement of Funds: Upon acceptance of the completed
work by the mobilehome owner,
city staff may release the
check for the approved grant
amount to said owner. It is also
the responsibility of the
owner to contact Special Circum-
stance staff with Shasta County
to request payment of any
funds approved through the Social
Service Program.
Notice of Completion: It shall be the responsibility of
the mobilehome owner to complete
and record a notice of completion
with the Shasta County Recorder
if he/she so desires to obtain
verification of material supplier
or subcontractor payments by the
general contractor.
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II Final Approval by the
state HCD Office: On those rehab projects requir-
ing a permit with the state
Housing and Community Develop-
ment Department, it is the
reponsibility of the contractor I
to obtain final approval for the I�
completed work. 4I
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Completing the File: Upon disbursal of all funds, the C
Housing Staff shall complete all II
necessary documents to close
out the file. ,
Final Letter to Mobilehome
Owner: Send letter with statement of
disposition of funds, notifying
client of completion date and 4
call back procedures.
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REHABILITATION PROCESS
Process Procedures �
Receive Request for Initial
Inspection: Upon receiving a request for
property inspection from Rehab
Finance Specialist, set up client
file:
- Attach file checklist.
- Obtain copy of Assessor's
Parcel Map (confirm location
of property within city
limits)
Arrange appointment for initial
inspection: Make appointment with Owner to
inspect
property.
Initial Inspection: Explain mobile repair program/
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 mobilehome owner
complete with letter of ; I
explanation.
{ Give copy of deficiency list and
cost extimate to Rehab Finance
Specialist.
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Send letter of explanation to
property owner I ;
Review Deficiency list with }
Owner: Review repair items and any '
significant problems concerning II
the project.
Review bid process with owner
and present him/her with
Contractors List if requested.
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Note: Owner is responsible for
securing bid from licensed
contractor to perform the work.
Owner is also responsible for
communicating the Mobile Repair
Program process to the ,
contractor (Explanation sheet
will be provided) .
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Grant Approval Process: Put rehab file in order while
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awaiting approval
by the Loan Committee. Complete
HISTORIC AND ARCHITECTURAL
ASSESSMENT FORM.
Grant Settlement: Upon signing the grant agree-
ment, the mobilehome owner is
now ready to sign the construc-
tion contract with the
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contractorWork may now ( '
commence.
Work Underway: Owner/contractor responsibility.
Completion of Construction: Owner/contractor responsibility.
Final Approval by the 1
state HCD Office: Owner/contractor responsibility.
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Final Approval by the
Housing Division: Owner shall contact the Housing
Division for final approval.
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