BILL 3785 ORDINANCE__________
AN ORDINANCE ESTABLISHING HOUSING REHABILIATION GRANT GUIDELINES UNDER THE CITY OF WEST PLAINS MISSOURI COMMUNITY DEVELOPMENT BLOCK GRANT APPLICAITION
NOW THEREFORE, be it ordained by the City Council of the City of West Plains, Missouri
SECTION 1. Purpose.
The purpose of the housing rehabilitation program is to correct code violations, overcrowded or unsanitary conditions, to improve the housing and living environment for persons of low to moderate-income levels living in the City of West Plains, MO. All procedures or program replacement shall comply with this ordinance and with implementing the Community Development Block Grant (CDBG) Housing Program Guidelines as attached.
SECTION 2. General Objectives
SECTION 3. Process
SECTION 4. Qualifications
SECTION 5. Grant Amounts.
The amount of any approved rehabilitation grant will not exceed the total cost of the rehabilitation, not to exceed the sum of $15,000, or $21,000 if lead-based paint hazard reduction is required, or $25,000 for housing reconstruction or new construction.
SECTION 6. Repayment
Recipients do not repay grants, unless a violation of SECTION 4, Qualifications of the Ordinance occurs.
SECTION 7. This Ordinance shall be in full force and
effect 10 days after its passage and approval.
PASSED AND APPROVED this _________ day of _______________, 20_______.
CITY OF WEST PLAINS, MISSOURI
_________________________________
MAYOR JOE PAUL (J. P.) EVANS
ATTEST:
________________________________
CITY CLERK CONNIE SHELTON
EXHIBIT A
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
The rules and regulations contained herein are to be used to administer the Housing Program of the City, funded by Community Development Block Grant funds. The rules and regulation are pursuant to ordinance ____________ passed on _________________.
The purpose of this program is threefold:
REVISION OF CONTENTS: The rules and regulations contained herein will be subject to review and revision by the Land Clearance for Redevelopment Authority and approval by the City Council of the City of West Plains at any time they deem necessary. However, these rules and regulations must be reviewed before they are used to administer like programs funded in future years.
When used in context with the “Rules and Regulations for Rehabilitation Grants,” the terms defined below hold explicit intent:
This chapter sets forth eligibility requirements as to the property and
the applicant for program assistance, and information pertaining to the effect
this assistance may have on recipients of public assistance and other welfare
benefits.
1.
TARGETED
AREA:
A rehabilitation grant may be
made only with respect to a property located within project areas approved
under the Community Development Block Grant (CDBG) Program of the City, unless
allowed under the following provision.
Up to 20% of the grant amount may be expended outside the area for
emergency situations defined by LCRA and approved by the City and the CDBG
Program Director.
2.
HOUSING
QUALITY STANDARDS:
The property must need rehabilitation to meet the program’s “Housing
Quality Standards”.
3.
PROPERTY
OWNERSHIP:
To be eligible for a rehabilitation grant, the applicant must be a
natural person or persons who owns or has part ownership in and/or occupies
residential property. The property
owner must have hazard insurance on the property at an amount of at least the
amount of the proposed grant. Ownership
includes holding all or part of the legal title to the property or occupying
the property under a land sales contract as defined by Section 4 of this
Chapter.
4.
LAND
SALES CONTRACT:
The term “land sales contract” refers to any transaction regardless of
the nomenclature by which it is known, in which the purchaser and/or occupant
obtains fee title only if a series of installment payments are completed over a
term of years. The form of the land
sales contract may vary considerably according to local practices, and the
circumstances of each sale.
A.
Eligibility
Requirements. In order for a purchaser
under a land sales contract to be eligible for a rehabilitation grant, all of
the following minimum requirements must be met.
(1)
The
contract shall be a written, legally binding, instrument involving a
residential property.
(2)
The
seller of the property must hold fee title to the property and while the
contract is in good standing, must be unable to use the property for collateral
or convey the property to any other party unless such use for collateral or
conveyance of fee is subject to the land sales contract. Legally acceptable limitation on the effect
of conveyance or use of the property for collateral must be found to exist
under local law, the provisions of the contract, or some other written agreement
in recordable form. The City shall
record this agreement or the contract, prior to grant settlement if necessary
to give either document the legal effect described.
(3)
Under the contract, the seller and any
subsequent holder of the fee to the property must be obligated, without
qualification, to deliver to the purchaser fee simple title and a deed to the
property upon full payment of the contract price or some lesser amount.
(4)
Under
the terms of the contract, the purchaser shall have:
(a)
Full
use, possession, and quiet enjoyment of the property,
(b)
Equitable title to the property, and
(c) Full rights of redemption for a period of not less than 90
days, unless redemption rights not less than 90 days are afforded by local law
to a purchaser under a land sales contract.
(5)
The
purchaser shall have had possession and use of the property under the contract
for at least 12 months to the date of application for a rehabilitation grant,
unless authorized by the Authority.
B.
Opinion
of Counsel: Before an application for
grant to a purchaser under a land sales contract can be approved, the LCRA must
obtain a copy of the land sales contract and an opinion from its counsel that
each of the foregoing conditions is satisfied.
If the land sales contract is to be refinanced, the opinion of counsel
need not cover the foregoing item “4(c)” as it does not apply to such a
case. The copy of the legal opinion and
the contract shall be retained in the LCRA’s files with respect to a rehabilitation
grant.
5.
ASSET
LIMITATION:
Since rehabilitation grants are intended for hardship cases to avoid
displacement of homeowners or tenants who have no their means of financing
repairs and improvements which must be made to their homes, rehabilitation
grants shall be made to homeowners or landlords that meet LMI guidelines or
non-LMI landlords that rent to LMI tenants.
6.
INCOME
LIMITATION:
All member of the household of the applicant must meet the income
limitations provided in Chapter 5 of these Guidelines.
7.
PUBLIC
ASSISTANCE AND OTHER BENEFITS
AFFECTED BY REHABILIATION GRANTS:
Under certain circumstances, the
eligibility of a person receiving public assistance and other welfare benefits
may be affected by a rehabilitation grant.
Many states include the value of homes in asset limitations for persons
receiving old age assistance, aid to the blind, aid to the permanently and
totally disabled, aid to families with dependent children, and other benefits.
Before processing applications for a rehabilitation grant, the LCRA should
ascertain whether a recipient of public assistance in its locality could lose
that aid as a result of receiving a rehabilitation grant. Because the relationships involved are based
on local regulation or law, the LCRA may wish to discuss this problem with the
appropriate local or State welfare agencies. When a rehabilitation grant may
cause discontinuance of public assistance to a recipient, the grant should be
made only if the applicant affirms the request with knowledge of any possible
consequences and despite those consequences.
8.
RENTAL
PROPERTY
Property for rent is only eligible for a rehabilitation grant
where the owner provides a rent freeze agreement to the Program
Administrator. The rent freeze
agreement provides that, for a period of two years, the property owner will not
raise the rent for the structure above the level at the time of application,
except for documented increases in cost of living or homeowner’s insurance with
approval of the LCRA. The rent level
must also be affordable with HUD published Fair Market Rent Levels. Landlord property owners that do not qualify
under the LMI income limits must pay 25% of the project cost, including lead
reduction activities.
CHAPTER 4: LIMITATION OF GRANTS
1.
GENERAL:
This chapter sets forth the limitation on the amount of housing
assistance. This amount is the maximum
amount of CDBG dollars that may be expended on one house. This amount represents the actual amount of
CDBG dollars that could be expended on a house, rather than the total amount on
a contract with additional funding from other sources. Other sources of funding must be documented
and submitted to the Program Administrator and kept on file.
2.
PROGRAMS:
Applicants may receive the following types of assistance at the
discretion of the LCRA.
a.
Housing
Rehabilitation Assistance—For houses that can be brought to DED's Livability
Standards for up to $15/sq. ft. of conditioned space plus the cost of lead
hazard reduction.
b.
Emergency
Housing Repair—For houses that do not meet the above criteria, but can be
brought to DED’ Health and Safety Standard for
$15/sq. ft. plus the cost of lead hazard reduction.
c.
Reconstruction—Where
a house does not meet the above criteria and is infeasible to rehabilitate or
repair, the house is demolished and rebuilt upon the same site.
d.
Relocation
Assistance—Where a house cannot be rehabilitated or repaired and adequate funds
are not available to reconstruct the house, relocation assistance may be
provided in accordance with the Uniform Acquisition and Relocation Assistance
Policies Act and the house will be demolished.
e.
New
Construction—Where a lot is vacant in the target area, a new house can be
constructed on the site using CDBG funds or a manufactured home meeting City
Planning and Zoning Codes can be placed on the lot.
3.
AMOUNT
OF ASSISTANCE:
Housing Rehabilitation or Emergency Repair Assistance—$15,000
grant forgivable after five years upon the condition that the property owner
not transfer ownership for a five year period. 20% of this grant will be
forgiven on an annual basis. Amounts in addition to the $15,000 grant may be
expended for the sole purpose of bringing the property up to Housing Quality
Standards.
Lead Hazard Reduction Assistance—If a house is a rental unit,
occupied by a child under 6, or is defined as a child-occupied-facility, or is
a house where CDBG funds will be used to disturb lead-based paint surfaces, up
to $6,000 in grant funds, in addition to any rehabilitation or repair
assistance, may be provided to eliminate any lead hazards as defined by a lead
risk assessor. This amount shall be in
addition to any amounts specified above.
Substantial Reconstruction—Up to $25,000 may be provided in the
form of a forgivable five-year grant.
The grant will be forgiven on an annual basis at 20% a year. The applicant
must provide any additional amounts required to build the house.
New Construction—Up to $25,000 may be provided in the form of a
forgivable five-year grant. The loan
will be forgiven on an annual basis at 20% a year. The applicant must
provide any additional amounts required to build the house.
4.
WALK-AWAY
POLICY:
Should a project be determined to not be feasible due to a lack of
funding or not meet any of the eligibility criteria of these programs, of the
applicant refuses the assistance offered, the City retains the right to reject
the owner’s application.
CHAPTER 5: APPLICANT’S INCOME
1.
HOUSEHOLD
INCOME:
The income of a household includes the gross income of the
occupants of a house. The applicant’s
family includes the applicant and any other person or persons related by blood,
marriage, or operation of law that share the same dwelling or unmarried
individuals living in the same dwelling.
If ownership of the property rests in more than one person, the applicant
is each owner occupant and their families. The applicant’s income, therefore,
includes all sources of income in the household; however, each family within
the household must qualify individually. An applicant’s income is established
on an annual basis, by projecting income for 12 months from the time of
applying for a housing assistance and includes all sources included in
“adjusted gross income” as defined by the Federal Internal Revenue
Service. Applicants will be asked to
prove each source of income listed on their application through assisting in
obtaining a third party verification or through submitting a certified copy of
their latest tax information.
2.
INCOME
LIMITS:
The income limits are set by HUD and are subject to
change on an annual basis based on the latest HUD published data. Therefore, the latest data will be attached
to this document and represent the maximum amounts of gross family income
allowed per family size for a rehabilitation grant. Questions concerning income calculations should be directed to
the Program Administrator.
3.
ELIGIBLE
HOUSEHOLDS:
In order to be eligible, the income of the occupants of the house must
meet the above income eligibility criteria.
If the applicant is not the occupant of the house, then the applicant
must require the occupants of the house to meet the eligibility
requirements. If the applicant is a
rental property owner and does not live in the house to be improved, the
applicant must also meet the eligibility requirement or pay 25% of the total
project cost of rehabilitation and lead hazard reduction. Landlords need not submit necessary income
documentation if they agree to pay 25%, in writing, of the entire project cost,
regardless of their income.
4.
PRIORITY
OF APPLICANTS
Priority for rehabilitation grants will be given in the following order:
a. Renters and homeowners in the target area with incomes below 50% of median, who are living in substandard housing.
b. Existing homeowners and renters in the target area with a handicapped resident, who are living in substandard housing.
c. Existing homeowners and renters in the target area, which are female-head of household, who are living in substandard housing.
d. Existing homeowners and renters who are over the age of 62, who are living in substandard housing.
e. Existing homeowners and renters in the target area with incomes below 80% of median, who are living in substandard housing.
CHAPTER 6: TERMS AND CONDITONS UNDER WHICH REHABILIATION GRANTS ARE MADE
1. GENERAL:
This chapter sets forth city requirements with
respect to terms and conditions to which an applicant must agree in order to
obtain rehabilitation grant.
2.
REHABILIATION
GRANT CONDITIONS:
The specific terms and conditions with respect to a rehabilitation grant
are incorporated in these rules and regulations. The applicant shall agree, and by signing the application forms
does agree to:
a.
Civil
Rights. Comply with all HUD
Requirements with respect to Title VI of the Civil Rights Act of 1964, to not
discriminate upon the basis of race, color, creed, or national origin in sale,
lease, rental, use or occupancy of the subject property.
b.
Cancellation
of Grant. Return of the grant proceeds
with no right, interest, or claim in the proceeds, if the grant is cancelled
before the rehabilitation work is started.
c.
Use
of Proceeds. Use of grant proceeds only
to pay for costs of services and materials necessary to carry out the
rehabilitation work for which the loan will be approved.
d.
Completion
of Work. Assure that the rehabilitation
work shall be carried out promptly and efficiently, through written contract
let with the prior concurrence of the LCRA.
e.
Ineligible
Contractors. Not award any contract for
rehabilitation work to be paid for in whole or in part with the proceeds of the
grant, to any contractor who, at the time, is ineligible under the provisions
of any applicable regulations issued by the Secretary of Labor, United States
Department of Labor, to receive an award of such contract.
f.
Inspection. Consent to inspection by the City or its
designee of the property, the rehabilitation work and all contracts, materials,
equipment, payrolls, and conditions of employment pertaining to the work.
g.
Records. Keep such records as maybe required by the
City with respect to the rehabilitation work.
h.
Bonus,
Commission, or Fee. Cannot pay any
bonus, commission, or fee for the purpose of obtaining the city’s approval of
the loan application or any other approval or concurrency required by the City
or its designee, to complete the rehabilitation work, financed in whole or in
part with the rehabilitation grant.
i.
Interest
of the City. Allow no member of the
City Council of the City of West Plains, who exercises any functions or
responsibilities in connection with the administration of the federally
assisted project or program, and no other officer or employee of the City who
exercises such functions or responsibilities, to have any interest, direct or
indirect, in the proceeds of the grant, or in any contract entered into by that
application, for the performance of work financed in whole or in part with the
proceeds of a rehabilitation grant.
j.
Interest
of the Local Public Officials. Allow no
member of the City Council of the City of West Plains in which the property to
be rehabilitated is situated, and no other Public Official of the locality who
exercises any functions or responsibilities in connection with the
administration of the federally assisted project or program, and no other
officer or employee of the City who exercises such functions or
responsibilities, to have any interest, direct or indirect, in the proceeds of
this grant, or in any contract entered into by the applicant for the
performance of work financed in whole or in part with the proceeds of the
rehabilitation grant.
k.
Trash
and Junk. The grant recipient shall be
required to, where the Program Administrator deems it necessary, clean up the
premises of all trash, junk, abandoned autos, cut all tall weeds, grass, and
vegetation, before any work is done on the recipient’s home.
l.
Lead-Based
Paint Hazard Removal. The grant
recipient shall consent to the removal of lead hazards as are determined by the
city’s designated lead-based paint risk assessor. The grant recipient shall consent to the procedures necessary to
contain dust during the removal of lead-based paint hazards, including limiting
occupancy of the house to areas outside of critical containment barriers set up
by the rehabilitation or lead abatement contractor. If relocation is necessary as a part of lead reduction
activities, the owner of the property or renter shall sign an agreement to be
relocated for the period of time needed to address the lead reduction
activities, and grant proceeds will be used to cover the relocation costs.
m. Home Maintenance/Financial Management Program. The grant recipient shall participate in a
home maintenance and financial seminar and/or counseling established for the
program.
n.
Repayment
Provisions. Some or all of the portion
of the grant proceeds shall become immediately due and repayable to the City in
the event that the property changes ownership or the rent-freeze agreement is
violated as is outlined in the contract documents.
o. Housing Quality Standards (HQS). The grant recipient must agree that the property to be improved will meet Housing Quality Standards as defined by the Department of Economic Development at the completion of a housing rehabilitation project. All rehabilitation work (improvements) should comply with currently approved (West Plains) building codes. Should the City have inadequate funds, in accordance with program guidelines, to make up any shortfall to meet this standard, the owner agrees to make up the difference with their own funds. The owner is under no obligation to ensure that the property continues to meet DED HQS after a certificate of completion has been executed, but is encourage to maintain the house to this standard or better.
p.
Contract
Periods. The contract period shall not
exceed 90 days, except as approved by the LCRA, and then shall not exceed 180
days without penalty to the contractor.
CHAPTER
7: ELIGIBLE COSTS IN REHABILITION
GRANTS
1. GENERAL.
A
rehabilitation grant may be made only to cover the costs of rehabilitation
necessary to make residential property conform to public standards for safe,
decent, and sanitary housing as specifically required by Housing Quality
Standards (HQS) and in compliance with currently approved West Plains building
codes, and other costs as provided in this section. Rehabilitation funds shall be used to achieve economical and
practical compliance with HQS.
2. INCLUDABLE
COSTS.
Costs includable in rehabilitation grants are the costs of meeting the
requirements of Housing Quality Standards, kitchen equipment, correcting
incipient violations, building permits and related fees, and any lead hazard
reduction costs of temporary relocation, dust control, and clearance.
3. COSTS NOT
INCLUDABLE.
Except
as otherwise provided in this section, a rehabilitation grant shall not provide
for:
a.
New
construction or substantial reconstruction.
b.
Materials,
fixtures, equipment, or landscaping of a type or quality which exceeds that
customarily used in the locality for properties of the same general type as the
property to be rehabilitated unless the difference in cost is paid for
exclusively with the funds of the property owners.
c.
Any
appliance not necessary to meet Department of Economic Development’s Housing
Quality Standards (DED HQS) other than air conditioning equipment.
d.
Driveways
and landscaping, expect as necessary to protect existing residential property
from deterioration, and as approved by the LCRA in accordance with CDBG
restrictions.
4. WORK
WRITE-UP.
The
Rehabilitation Inspector, in conjunction with Program Administrator, shall
prepare a deficiency list and work write-up in accordance with the HQS, to
document the rehabilitation work to be financed with a rehabilitation
loan. Any additions to the work write-up
based upon the owners wishes to exceed DED HQS may be included in the work
write-up, provided that these items are paid for exclusively with the owner’s
funds as is outlined in the contract specifications.
5. CHANGE
ORDERS.
The
Rehabilitation Inspector, with the consent of the property owner, may approve
changes in the work write-up, if the amount of the contract is not increased
more than $250. Changes in the loan
amount in excess of $250 must be approved by the LCRA, with the consent of the
property owner. All change orders will be
in writing and will be signed by the property owner, or the designated
representative of the property owner, a representative of the LCRA, and the
contractor.
6.
MANUFACTURED HOMES.
In order
to be eligible, manufactured homes must comply with current city codes.
CHAPTER 8: PROCESSING AND
SUBMISSIONS FOR GRANTS
1. GENERAL.
This
chapter contains an outline of the functions to be performed by the Program
Administrator in connection with a rehabilitation grant, and sets forth the
rules and regulations to be followed by the Administrator in preparing,
processing, and approving or denying an application for a rehabilitation grant
for aggrieved applicants.
2. PROCESSING
AND APPROVAL OF GRANT APPLICATION.
Processing by the Program Administrator of an application for a
rehabilitation grant consists of the completion of the requirements stated
herein, assembled in one file consisting of the application form and all
supporting documents, and the review of the file to determine approval.
a.
Preparation
of Form. The Program Administrator
shall assist in preparing the application form (original and one copy) for the
applicant, based on information furnished by the applicant and obtained by the
Program Administrator from other sources, as documented in the file. Every space provided for an entry on the application shall be
completed. Entries of money amounts
shall be made rounded to the nearest dollar.
If no money is involved for an entry for a particular application, the
entry shall be “none.” Review and
approval by the LCRA of the application shall be based on the form completed in
this manner.
b.
Applicants
Purchasing Under a Land Sales Contract.
If an application for a rehabilitation grant with respect to an
occupant-vendee under a land sales contract or similar arrangement, the file
shall contain documentation to support the requirements in Chapter 3.
c.
Approval
of Application for Grant. The Program
Administrator shall obtain approval of an application form by presenting it to
the LCRA. The LCRA will then, using the
“Guidelines,” decide on the eligibility of the applicant. If the rehabilitation grant alone is
sufficient to rehabilitate the property, of if the rehabilitation grant is to
be supplemented by funds from other sources the Board is assured that the
property will be rehabilitated to their satisfaction, the rehabilitant grant is
considered approved. The Program
Administrator shall notify the applicant, and proceed with the remainder of the
functions in order to complete the rehabilitation work. If the LCRA determines that an application
for a grant cannot be approved, the Program Administrator shall send a written
statement of the reasons for the determination to the applicant.
3. GRANT CANCELLATION
An approved rehabilitation grant may need to be
canceled because the applicant has requested cancellation or is unwilling or
unable to participate in the rehabilitation program, or for other reasons. To cancel an approved rehabilitation grant,
the Program Administrator shall prepare a letter outlining the reasons for
canceling the grant and distribute the letter as follows:
(1)
Original
to applicant.
(2)
One
copy to the administrative file.
4. APPEAL PROCEDURE.
a.
Any
person aggrieved by a decision to the LCRA, relating to grant approval, grant
cancellation, determination of grant amount, or concerning acquisition and
relocation procedures implemented by the governing body, may appeal said
decision by filing a written appeal to said LCRA within thirty (30) days of
receiving notice of the LCRA decision.
The LCRA shall hold a public hearing after due notice to the appellant
within thirty (30) days of filing said notice of appeal. The LCRA may affirm or reverse or modify its
decision and notify the appellant in writing of its decision and the reasons therefore. After the public hearing, the LCRA’s
decision shall be final, subject to approval of the City Council.
b.
Any
person denied a grant by the LCRA who does not take exception with the
findings, but who believes there are circumstances which, if known and
considered, would establish extreme hardship and justify variance from the
eligibility standards established herein may request a hearing before the LCRA
by filing said request with the LCRA within thirty (30) days of receiving
notification of the LCRA’s decision.
The LCRA shall proceed upon such request in the manner set out for
appeals. The Program Administrator
shall provide any persons needing assistance in filing an appeal the
appropriate assistance.
c.
Time
Limit for Initiating Appeals. The LCRA
may set a reasonable time limit for filing grievances and appeals. The LCRA will not consider any appeal for
rehabilitation work which meets the following criteria:
(1)
The
aggrieved party signed a certificate of completion; or the process described in
“Chapter 9,1, e” of these guidelines has been completed:
(2)
The
certificate of completion was signed more than one year before the grievance
process is initiated.
(3)
The
aggrieved party has not documented efforts to have the contractor return to
resolve the matter within the one-year period after the certificate of
completion was signed.
All other requests concerning completion of
the contract requirements by the contractor will follow the procedures outline
in “Chapter 9,1, f,” even in cases where a certificate of completion has been
signed.
d.
Right
to Representation: A person has a right
to be represented by legal counsel or other representative in connection with
his or her appeal, but solely at the person’s own expense.
e.
Right
to Files by Persons Making Appeals: The
City will permit a person to inspect and copy all materials pertinent to her or
his appeal, except materials that are classified as confidential. The City may,
however, impose reasonable conditions on the person’s right to inspect, which
are consistent with applicable laws, such as the cost of copying materials.
f.
Scope
of Review of Appeal: In deciding an
appeal from the LCRA’s decision, the City Council shall consider all pertinent
justification and other material submitted by the person all other available
information that is needed to ensure a fair and full determination of the
appeal.
g.
Determination
and Notification After Appeal: Within
thirty (30) days after the receipt of all information submitted by a person in
support of an appeal, the LCRA shall make a written determination on the
appeal, including an explanation of the basis on which the decision was made,
and furnish the person a copy. If the
relief requested is not granted, the LCRA shall advise the person of her or his
right to seek Missouri Community Development Block Grant (CDBG) program review
of the Authority’s written determination of the appeal. The LCRA must inform the person of their
right to seek a CDBG review in writing and provide the person with the State of
Missouri CDBG program address and phone number. This information must be sent with the copy of the LCRA’s written
determination of the appeal that is provided the appellant.
h.
Time
Limits for CDBG Review of Grantee Determination. A person has forty-five (45) days after she or he receives the
LCRA’s written determination of their appeal to file a review appeal with the
State of Missouri’s Community Development Block Grant Program.
CHAPTER
9: PROCEDURE OF REVIEW OF THE
REHABILIATION ACCOUNT AND REPORTS TO THE CITY
1. ACCOUNTING.
a.
The
Program Administrator shall approve and present bills to the LCRA and after
their approval they shall be paid. A
listing of bills paid and all financial statements shall be presented to the
City Council monthly.
b.
The
LCRA and City may periodically inspect all records associated with the CDBG
Program.
c.
The
Program Administrator shall be responsible for all receipts and disbursements
of the CDBG program.
d.
The
Program Administrator shall prepare and keep all ledgers and shall write all
CDBG related checks. Two authorized
signatories shall execute all checks.
e.
Partial
payment to contractors shall be paid when a payment request form has been
submitted and signed by the Rehabilitation Inspector and a representative of
the City, and lien waivers have been provided for all materials installed.
f.
A
bill for not more than 90% of final contract payment of a contractor
shall not be paid unless the following information has been filed with the
City: a certificate of completion
signed by the property owner, notarized lien waivers have been provided for the
general contractor, subcontractor, and all material suppliers, lead-based paint
clearance standards have been met, and all warranties have been provided by the
contractor. If a homeowner refuses to
sign a certificate of completion, the Program Administrator should apply the
following procedures:
(1)
Request
a written list of the items not completed to the owner’s satisfaction.
(2)
Should an owner refuse to present such a list
to the grantee, the Program Administrator should mail a certified letter to the
owner providing the owner a period of 10-20 days in which to provide such a
list to the grantee.
(3)
Whether
or not the Program Administrator receives a list from the owner, the
Rehabilitation Inspector must review the contractor’s work to determine if the
contract has fulfilled all of the terms of the contract.
(4)
If
the Program Administrator does not receive a deficiency list within the
specified time period, the LCRA should consider the matter closed when they
have determined the contractor has fulfilled the terms of the contract. The Rehabilitation Inspector’s re-inspection
report and letter requesting a deficiency list from the property owner should
be placed in the project file.
(5)
Upon
receipt of a deficiency list from an owner, the Rehabilitation Inspector shall
re-inspect the property in accordance with the list as well as the terms of the
contract.
(6)
When
the contractor has addressed all reasonable requests, the house meets
Department of Economic Development’s Housing Quality Standards (DED HQS), and
the terms of the contract have been fulfilled, the Program Administrator should
again present the certificate of completion to the owner for their signature.
(7)
If
the owner still refuses to sign, the Program Administrator shall request a
final list of deficiencies from the owner to present to the LCRA.
(8)
When
the LCRA determines that the work is complete, terms of the contract fulfilled,
reasonable requests by the owner addressed, the house meets DED HQS, further
complaints by the owner should be placed in the file and the grantee should
consider the project complete. Final payment to the contractor may be made.
g.
The
LCRA shall hold back the final 10% of a contractor’s payment until thirty (30)
days after the final “Certificate of Completion” is signed before issuing the
final payment on a project. This will
ensure that any immediately required warranty work is handled in an expeditious
manner.
2. CITY
COUNCIL MEETINGS.
Progress reports and financial statements will be provided to the City
Council, concerning the progress of the Program.
3. REPORTING
AND MEETING OF THE AUTHORITY.
The LCRA shall meet once a month or when necessary to make
decisions. The Rehabilitation Inspector
and Program Administrator shall report to the Authority concerning the progress
of the Program.
4. PROJECT
INSPECTIONS.
The
Rehabilitation Inspector shall inspect each project under contract not less
than once per week until each project is completed. A report of each inspection shall be provided to the Program
Administrator.
CHAPTER 10:
CONTRACTOR SELECTION
1. CONTRACTOR LIST.
The Program Administrator will develop a qualified contractor
list containing the names of all contractors meeting the eligibility
requirements. The Program Administrator
will solicit new contractors by advertisement or newspaper twice per year
and/or through other methods. Minority
and female owned contractors will be solicited directly.
2. CONTRACTOR QUALIFICATIONS.
In order to qualify for the list, contractors must meet the
following requirements:
a.
Must
carry Workers’ Compensation Insurance for all employees not having an ownership
interest in the business.
b.
Must
carry liability insurance at the minimum amount of $300,000.
c.
If
undertaking lead abatement activities, must carry a supervisor’s license and
contractor’s license from the Missouri Department of Health.
d.
Must
be licensed by the city if undertaking electrical, HVAC, or plumbing work.
e.
If
operating as a business (not an employee) must have a city business license.
f.
Must
fill out the contractor application form.
g.
Must
have good credit with the appropriate material suppliers.
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