Dickinson County Housing Program Procedural Guide. Funded by Michigan State Housing Development Authority

Transcription

1 Dickinson County Housing Program Procedural Guide Funded by Michigan State Housing Development Authority

2 TABLE OF CONTENTS Page SECTION I General Provisions 2 SECTION II Allowable and Unallowable Costs... 4 SECTION III Applicant Requirements... 6 SECTION IV Eligible Dwellings and Improvements.. 9 SECTION V Contractor Requirements.. 10 SECTION VI Fair Housing & Eligibility Priority 11 SECTION VII Processing.. 12 SECTION VIII MSHDA Required Legal Documents. 13 SECTION IX Policy for Subordination of Liens and Recapture of Funds SECTION X Complaint Resolution Procedure SECTION XI Dispute Resolution Procedure 21 1

3 SECTION I GENERAL PROVISIONS PURPOSE OF THE PROGRAM: This Program is intended to provide funds for the renovation and repair of owneroccupied, single family residential homes. All repairs must conform to the Michigan Residential Code and Housing and Urban Development s (HUD) Uniform Physical Condition Standards (UPCS), as mandated by the Michigan State Housing Development Authority (MSHDA). The program will comply with local zoning ordinances. This program is not intended to provide new housing, only rehabilitation of existing housing. PURPOSE OF THE PROGRAM GUIDELINES: The purpose of these Guidelines is to establish policies for carrying out the Housing Rehabilitation Program in a manner consistent with HUD requirements and local goals and objectives. Dickinson County (The County) is responsible for complying with all changes in HUD regulations pertaining to the CDBG program. If such changes conflict with these Guidelines, as previously stated HUD regulations will have precedence. Applicable regulations include: 24 CFR Part 5: General Program Requirements 24 CFR Part 8: Nondiscrimination 24 CFR Part 570: Community Development Block Grant 24 CFR Part 35: Lead-Based Paint Regulations HOUSING PROGRAM AUTHORITY The County, and The County s Selected Third Party Administrator (collectively referred to as the Housing Program Authority HPA) has the authority and may, at its discretion, upon prior MSHDA approval exceed any of the guidelines it has established and disregard any of the restrictions it has imposed in any case where the HPA determines that the program purpose will be best served by doing so. The HPA retains the right to re-determine any applicant based on change of income status. Any change to the guidelines must be approved by MSHDA. 2

4 PROGRAM ACTIVITIES: Homeowner Rehabilitation (HR) Under this activity the home will be rehabilitated to meet code requirements of the program. The maximum amount of CDBG, MSHDA, and/or HOME funds that can be used for all costs on each project is $40,000. MODIFICATION AND TERMINATION OF PROGRAM The County may amend the Procedural Guidelines from time to time by issuance of revised pages, which shall be effective as of the date of issue, or such later date as the amendment shall specify. Administrative memoranda may also be issued which discuss policy interpretations, clarification of procedures and other administrative matters. Nothing in the Procedural Guide shall be construed in such a manner as to conflict with, alter, or amend any Federal, State and Local regulations. 3

5 SECTION II ALLOWABLE AND UNALLOWABLE COSTS Allowable costs are necessary to implement the Home Improvement Program as approved by its funding source. These improvements might include, but are not limited to the following: 1. Rehabilitation Expenses A. Installation and/or repair of sanitary water and waste disposal systems, together with related plumbing and fixtures, which will meet local health department requirements. B. Energy conservation measures such as: 1. Insulation 2. Insulated windows and exterior doors C. Repair or replacement of the heating system. D. Electrical wiring. E. Repair or replacement of structural supports and foundations. F. Repair or replacement of the roof. G. Replacement of deteriorated siding, porches or stoops. H. Interior and/or exterior alterations to provide greater accessibility for any handicapped occupant within the household. I. Additions to conventional homes only when it is clearly necessary to alleviate overcrowding or to remove health hazards to the occupants. 2. Funds may be used to make improvements that do not contribute to the health, safety and well being of the occupant or do not materially contribute to the structural integrity or long term preservation of the home. The percentage of funds to be used for such purposes must not exceed 30 percent of the total funding for the unit, and such work must be combined with improvements listed as eligible under paragraph (A) of this section. These improvements might include, but are not limited to the following: A. Painting B. Carpeting C. Improving clothes closets or shelving D. Improving kitchen cabinets E. Limited landscaping activities. 4

6 3. Funds may not be used to: A. Assist in the construction or completion of a new dwelling. B. Refinance any debt or obligation of the homeowner for obligations entered into prior to the date of a written agreement between the homeowner and the Housing Program. C. Pay for any items not approved by the Housing Program Administrator. 5

7 SECTION III APPLICANT REQUIREMENTS Applicant must be an individual or family who has ownership and occupies a single dwelling residential property, or is a purchaser of such property under a land sales contract or mortgage. The structure to be improved must be located in The County. The land sales contract, deed or mortgage must be recorded at The County Register of Deeds. 1. Family size and annual income in relationship to the Area Median Income determines income eligibility. Applicant must meet the income requirements as stated in the current Grant agreement between the County and MSHDA and as updated at Income and household member inclusions and exclusions shall be determined using the guidelines and procedures contained in MSHDA s Policy Bulletin #11, as updated, to determine an applicant s income eligibility. 2. The applicant must have a qualifying interest in the property although that interest may be aggregated with the ownership interest of other individuals. A qualifying interest shall consist of: A. Individual fee ownership with recorded deed (no corporate, trust, legal partnership, etc.); or B. Individual fee ownership subject to a mortgage or other lien securing debt; or C. An ownership interest in a properly recorded land contract; or D. Individual member-shareholder in a nonprofit cooperative housing corporation in which the member-shareholder has a proprietary interest in the structure to be rehabilitated; or E. A life estate interest; however, for HOME-funded grants, life estates are not eligible. For CDBG and MSHDA-funded grants, person(s) occupying a dwelling under a life estate agreement are eligible for homeowner rehabilitation assistance under certain conditions outlined in MSHDA s Policy Bulletin #16, as updated. All individuals having an ownership interest in the property to be improved must sign the Repayment Agreement. 3. Applicant must have occupied the premises for one (1) year prior to making the application. The home must be their permanent residence. An exception may be made for a disabled person or household member who cannot move into the home until modifications are made. 4. Applicant must choose licensed contractors to perform the work listed in the Work Specifications. Contractors and contractor s employees must meet the qualification requirements of the program. 6

8 5. Applicant must approve and agree to the Work Specifications as written by the Program Administrator. The Program Administrator must approve any alterations from the original Work Specifications before they are completed. 6. Applicant and all other joint owners of the property must agree to sign a mortgage and note for the total amount of the loan, including all related costs of the loan. If applicant has purchased the home on a land contract, the land contract holder must also sign the mortgage and note. 7. Applicant will be required to maintain loss payable insurance on the property for the duration of the terms of the loan and provide proof annually. The County will be placed on the insurance policy as lien holder if the project is approved. 8. Applicant s current mortgage and property taxes must be up-to-date and the applicant will be required to keep the mortgage and tax payments current for the duration of the term of the loan. In addition, there shall be no outstanding mechanics liens filed against the property. 9. If there is a mortgage on the property to be improved, it must be current. The applicant will be required to keep the mortgage current for the duration of the term of the loan. 10. Upon termination of ownership, whether by sale of property, title transfer or death, the balance of the mortgage must be paid in full. Note: If home is deeded to another family member upon applicant s death; that person s income shall be verified. If he/she qualifies based upon the then current income guidelines, the repayment amount will be determined by the HPA. If income is too high, this person shall secure funding to pay off the full balance due on the loan within 120 days. 11. No property shall be eligible for a housing rehabilitation loan if it has been improved with a rehabilitation loan within the 5-year period immediately preceding the date on which application for such a loan is made. An exception may be made in extraordinary circumstances from damage to the property as a result of events beyond the control of the applicant or relating to health and safety concerns, such as failure of plumbing, heating or electrical systems, or as determined by HPA staff. In such circumstances, provided that funding is available, the applicant can receive assistance limited to correcting the damaged or failed system(s) only. No other eligible work can be carried out until the full 10-year period has elapsed. Applicants with a previous rehab loan from over 5 years ago will be limited to essential repairs such as correcting health and safety hazards or repair of major systems, such as plumbing, electrical, or heating failure. Until the previous rehabilitation loan is forgiven, no additional work will be allowed unless it is determined by HPA staff to be essential. 7

9 12. Applicants who are employees or immediate family members of current or past Housing Program Administrators, The County Elected Officials, or The County employees must disclose their relationship on the application. This relationship will be reviewed and the application may require prior MSHDA approval. (Conflict of Interest Regulations) 13. The applicant must be capable of maintaining the home. This includes financial and physical maintenance of the home. Applicants with significant financial and/or physical maintenance issues may be referred to appropriate service agencies. Loans will not be approved if the condition of the home demonstrates that the homeowner is not able or willing to properly maintain a home. This requirement includes housekeeping problems as well as neglectful maintenance. 14. MSHDA requires that certain homeowners contribute a portion of the rehabilitation cost in accordance with their income. Homeowner contribution can come from any outside source. The amount of homeowner funding is determined by the total household income as a percentage of the area median income. Households with income at 60% or below the area median will receive 100% funding. Households with income above 60% up to and including 70% of the area median shall contribute at least 10% to the total project cost. Households with income above 70% up to 80% of the area median shall contribute at least 20% to the total project cost. The HPA is available to assist homeowners in receiving low interest loans from MSHDA for property improvement (Property Improvement Program - PIP). The application for a PIP loan is completed through the HPA and then forwarded to a local participating lender for processing. 8

10 SECTION IV ELIGIBLE DWELLINGS & IMPROVEMENTS Property Type and Location The property must be 1) located within The County; 2) in compliance with all applicable zoning ordinances; 3) used primarily for residential purposes; and 4) contain no more than two dwelling units, one of them owner-occupied. Improvements can only be made to the owner-occupied unit, unless the improvement serves both units, such as a roof. However, a condominium or townhouse may be considered eligible provided repairs are done only within the unit. Structure The property to be improved must be an existing and permanent structure at least five (5) years old. An owner-occupied manufactured home on a permanent foundation located on land owned by the applicant is eligible. Trailers or manufactured homes located on land not owned by the applicant are not eligible. Eligible Improvements Each improvement must be a permanent general improvement. Permanent general improvements shall include such alterations, renovations, or repairs upon or in connection with existing structures, which correct defects or deficiencies in the property affecting the safety, habitability, structural integrity or energy consumption of the property. When completed, the property shall meet the HUD Uniform Physical Condition Standards. No funds shall be used in whole or in part for the purpose of refinancing or paying off an existing indebtedness. All such funds must be used to finance improvements begun after the execution of a Work Contract prepared by the HPA and signed by the homeowner and the contractor. Emergency repairs Priority may be given where a condition develops requiring immediate and urgent attention, which threatens or imperils the health and/or safety of the applicant household or to protect the dwelling from further structural damage (such as when a property has been damaged by a natural disaster, fire, or structural collapse). Examples of emergency situations are the failure of plumbing, heating and electrical systems or a system being red flagged by a utility company. The written opinion of a Utility Provider or Building Inspector from the authority having jurisdiction detailing a code or safety violation or violations may, at the discretion of the Housing Program Administrator, be an acceptable definition of an emergency situation. 9

11 SECTION V CONTRACTOR REQUIREMENTS 1. Contractor will be licensed by the State of Michigan and provide a copy of their current license to the HPA. 2. Contractor will provide a copy of their current insurance policy providing coverage for not less than $300,000 in the event of bodily injury including death, and no less than $100,000 in the event of property damage and worker s compensation coverage to the HPA. A Sole Proprietors Form must be signed if the contractor is excluded from carrying worker s compensation insurance. 3. If requested by the HPA, the Contractor must complete the W-9 IRS Form, even if the company is incorporated. 4. Contractor must comply with all federal, state and local fair housing ordinances, HUD Section 3 regulations, be an equal opportunity employer, and solicit participation from female and minority sub-contractors. 5. Contractor must provide specifications and insure work that complies with HUD Uniform Physical Condition Standards (UPCS), MSHDA Moderate Rehabilitation Standards, Michigan Residential Code and any local housing ordinances as applicable. 6. Contractor must sign all documents HUD, MSHDA, and the HPA require for program participation. 7. Contractor must sign and comply with the provisions of the Housing Rehabilitation Program Contract. 8. Contractor must provide three references from recent clients prior to being accepted into the program. 9. Contractor will be required, upon request, to provide copies of all invoices and bills showing the price, quantity, and quality of materials used on all projects. 10. Contractors shall provide a list of all subcontractors along with a sworn statement for work completed. 11. If Lead Based Paint is present the selected contractor performing the work and his/her employees and subcontractors must be appropriately certified to perform the work. This may require being certified as a State of Michigan Abatement Contractor, Abatement Supervisor, or as an EPA Renovation, Repair, and Painting (RRP) Rule certified firm and worker. 10

12 SECTION VI FAIR HOUSING & ELIGIBILITY PRIORITY Fair Housing is a right protected by federal and state laws that refers to insuring that all people have an equal opportunity to access housing of their choice. Discrimination in housing and housing related services is prohibited by both the Federal Fair Housing Act and the Michigan Fair Housing Law. The County has passed a Fair Housing Resolution and is committed to operating all of its housing programs in a fair and impartial way. The County is committed to providing programs in a way that does not discriminate based on race, color, sex, national origin, religion, familial status, disability or elderliness. The Housing and Community Development Act of 1974 required that priority be given to very low, low and moderate income persons in making a rehabilitation loan on residential property. This is interpreted to mean persons whose income is less than 80% of the Area Median Income. Applicants will be chosen on a random lottery basis from a pool of pre-applicants who have expressed interest in the program. Occasionally, where an applicant has an immediate safety or health need, or an unforeseen emergency exists, that applicant, upon review of the situation, may be given priority. 11

13 SECTION VII PROCESSING 1. Individuals expressing an interest in the program will do so by completing a preapplication. Completed applications will be accepted from those individuals chosen from time to time on a random lottery basis from all pre-applicants. 2. The Housing Program Administrator will interview the applicant to ensure the applicant is aware of the program scope; the requirement of mortgage placed on the property to secure the loan and other pertinent information. 3. The requirements as outlined in Section IV will then be verified by the Housing Program Administrator including, as applicable: A. Income and asset verification B. Homeowner s insurance on home C. Property tax payments D. Mortgage payments E. Length of time the homeowner has lived in the home F. Property ownership G. Eligibility of proposed work items 4. If applicant meets the above requirements, the rehabilitation process will continue as follows: A. Home is inspected by Housing Program Administrator for compliance with UPC Standards and to determine the scope of the project. B. Documentation and Pictures are sent to SHPO for clearance. C. SHPO clears the home of Historical Significance (If home is not cleared special consideration will be made in the work specifications to preserve its historical significance). ***********************After SHPO Clearance************************ D. A Lead Inspection and/or Risk Assessment is completed on the property as required by the funding source. E. Work Specifications out-lining work items to be completed are written and return to homeowner for approval. F. Homeowner collects bids from eligible contractors of their choice. G. Bids are reviewed by the Housing Program Administrator and the Homeowner. H. Homeowner selects an eligible contractor, awards contract and a contract price is finalized. I. Homeowner signs MSHDA required legal documents. 12

14 J. A lien in the form of a mortgage is placed on the property for the dollar amount funded by MSHDA. This mortgage is recorded in The County Register of Deeds Office. K. Homeowner submits their required cash contribution to be placed in escrow with the Program funds. L. Rehabilitation Begins. M. Contractor request a draw. N. The Housing Program Administrator inspects work. The Homeowner approves the work completed by the Contractor and Homeowner signs a release of payment. O. The payment request is submitted and the contractor receives payment from the escrow account. P. Rehabilitation is completed, Contractor submits final draw. Q. Final inspection is made by the Housing Program Administrator along with the local Construction Code Authority, if applicable. R. Homeowner gives final approval and signs a release of payment. S. Final draw is submitted and the Contractor receives final payment. 5. Denial of Eligibility. The HPA will review and verify all applications for eligibility. Those applicants not meeting the eligibility requirements will be sent a written notice explaining the reason(s) for denial and outlining the appeal process as stated below. Appeals regarding interpretation of eligibility requirements shall be made in writing to the Housing Program Administrator, then the County Administrator/Controller. Appeals that clearly do not meet eligibility requirements will not be considered. 6. Rejection of Application. To insure the efficient use of funds and staff resources the homeowner is responsible for providing necessary information to the HPA in a timely fashion. In the event a project becomes delayed due to inaction by the homeowner. The HPA shall notify the homeowner in writing, and if an oral or written response is not received within 15 days, the HPA may reject a pending application or cancel a project that is underway. 13

15 SECTION VIII MSDHA REQUIRED LEGAL DOCUMENTS Homeowner Assistance Program Mortgage: This legal document states the amount of the deferred loan, the requirements of the property owner, and the circumstances that warrant repayment of the interest-free deferred payment loan. This Mortgage is recorded as public record. Homeowner Assistance Program Mortgage Note: This legal document also states the amount of the deferred loan. The Note gives legal notice of the Mortgage; it is recorded as public record. Land Sales Contracts: If the property to be improved is being purchased under a land sales contract, the land contract holder must agree to subordinate the land contract to the housing program mortgage. A Land Sales Contract Subordination Agreement must be signed and recorded along with the housing program mortgage. 14

16 SECTION IX POLICY FOR SUBORDINATION OF LIENS AND RECAPTURE OF FUNDS General: Loans provided by The County are frequently in a second position behind the primary lender on the rehabilitated property. Due to the public nature of these funds and changing financial conditions, this subordination policy has been adopted. Applicability: This policy applies to projects that have received or will receive Housing Rehabilitation assistance. Terms and Conditions: The County may subordinate its housing rehabilitation loans to a private lender. The County charges a $200 fee for entering into a subordination agreement to cover staff and legal fees. In addition to this fee, the property will need to have adequate equity to protect the County s interest. The total amount of all liens against the property (including the lien resulting from MSHDA CDD funding) cannot exceed 80% of the value of the property based on a current appraisal. The household must have income at or below 80% of AMI. A minimum of one year must have expired since the MSHDA CDD assistance was received. The interest rate for the new loan and associated loan costs must be competitive with the lowest rates and costs available in the lending industry. A worksheet evaluating current loan rates and costs must be part of the approval process. The proceeds of the loan the County is subordinating to must be disbursed by the lender for the approved purposes of the loan. The lender must provide copies of disbursement checks that will be kept in the project file. All subordination agreements must be approved by the County Administrator/Controller and be in accordance with MSHDA s Policy Bulletin #9, Financial Assistance and Lien Requirements. 15

17 Eligible Conditions: 1. Refinance to lower the interest rate and/or change the term of the primary loan. 2. To undertake a necessary home improvement to maintain livability or property value. Ineligible Conditions: 1. To pay off or consolidate credit card or other debt. 2. To take cash equity out of the property for personal use. Recapture of funds: The County will recapture all loan funds pursuant to the terms and conditions of the rehabilitation assistance. Upon sale transfer or termination of occupancy, all outstanding County held loans shall be repaid to the County and a satisfaction of the loan shall be provided to the agency or individual handling the transaction. It is the recipient s duty to notify the County of any sale, transfer or rental of the property and to satisfy any outstanding obligation for reimbursement. Failure to do so shall result in the entire amount of the financial assistance becoming due and payable. 16

18 SECTION X 1. APPLICABILITY COMPLAINT RESOLUTION PROCEDURE This complaint procedure is applicable to all individual complaints and housing rehabilitation or discrimination complaints, as defined in subsection 2.a. hence under, between a contractor, client, or housing program applicant and the HPA. 2. DEFINITIONS a. Complaint is defined as any complaint with respect to the HPA s action or failure to act in accordance with Federal, State and local fair housing policies, equal opportunity requirements or the HPA s action or failure to act involving interpretation or application of rehabilitation regulations, policies or procedures, which affects the rights, duties, welfare or program status of the complainant. b. Complainant is defined as any contractor, client or applicant whose rights welfare or program status are or may be adversely affected by the HPA s action or failure to act, and who files a grievance with the HPA with respect to such action or failure to act. 3. INFORMAL SETTLEMENT OF A COMPLAINT a. Any complaint shall be personally presented, if possible, either orally or in writing, to the Housing Program Administrator so that the complaint may be informally discussed and settled without a review. This informal discussion is prerequisite to a review. Complaints presented for informal discussion should be filed by the complainant or their representative within a reasonable time, not in excess of ten (10) calendar days of the HPA s action or failure to act, which is the basis for the grievance. b. A summary of each informal discussion shall be prepared by the Housing Program Administrator in attendance within a reasonable time, not in excess of fifteen (15) calendar days from the date of discussion, one copy of which shall be delivered or mailed to the complainant, and one retained in the complainant s file. The summary shall specify: 1. The names of the participants, the date(s) of meeting, and the nature of the complaint; 2. The proposed disposition of the complaint and the specific reasons therefor; 3. The right of the complainant to a review; and 4. The procedure by which a review may be obtained. 17

19 c. If the Housing Program Administrator fails to resolve the complaint, He/She shall: 1. Inform the County Administrator/Controller of the outstanding complaint. The County Administrator/Controller will conduct a review of all cases that cannot be successfully resolved by the Housing Program Administrator. 4. PROCEDURE TO OBTAIN A REVIEW a. Any complaint shall be personally presented, if possible, either orally or in writing, to the County Administrator/Controller so that the complaint may be informally discussed and settled without a formal hearing. This informal discussion is prerequisite to a formal hearing. Complaints presented for review should be filed by the complainant or their representative within a reasonable time, not in excess of ten (10) calendar days of the Housing Program Administrator s summary of the complaint. b. A summary of the review shall be prepared by the Housing Program Administrator in attendance within a reasonable time, not in excess of fifteen (15) calendar days, one copy of which shall be delivered or mailed to the complainant, and one retained in the complainant s file. The summary of the review shall specify: 1. The names of the participants, the date(s) of meeting, and the nature of the complaint; 2. The proposed disposition of the complaint and the specific reasons therefore; 3. The right of the complainant to a formal hearing; and 4. The procedure by which a formal hearing may be obtained. c. If the complainant is dissatisfied with the proposed disposition of his complaint as stated in the summary of review, he/she must submit a written request for hearing to the County Administrator/Controller within a reasonable time, not in excess of ten (10) calendar days after receipt of the summary of review. The written request shall be signed by the complainant, and shall specify: 1. The reasons for the complaint; and 2. The action or relief sought. d. The County Administrator/Controller shall schedule the hearing with the Hearing Panel and shall inform the complainant thereof in writing. e. If the complainant does not request a hearing within the time period allowed in Subsection a. above, he/she waives his/her right to a hearing, and the County Administrator/Controller s proposed disposition of the complaint will become final. This shall not, however, constitute a waiver of the complainant s right 18

20 thereafter to contest the disposition of his/her complaint in an appropriate judicial proceeding. f. The Hearing Panel shall be appointed by the County Administrator/Controller on an as needed basis. The Hearing Panel shall consist of at least three (3) persons, including a community representative and a person with building/construction experience. 5. PROCEDURES GOVERNING THE HEARING a. The complainant shall be afforded a fair hearing providing the basic safeguards of due process which shall include: 1. The opportunity to examine before the hearing and, at the expense of the complainant, to copy all documents, records, and regulations of the HPA that are relevant to the hearing. Any document not made available after being requested by the complainant may not be relied upon by the HPA at the hearing; 2. The right to a private hearing, unless the complainant requests and the HPA agree to a public hearing. This shall not be construed to limit attendance of persons with a valid interest in the proceedings; 3. The right to be represented by counsel or another person chosen as a representative; 4. The right to present evidence and arguments in support of his/her complaint, to controvert evidence relied upon by the HPA, and to confront and cross-examine all witnesses whose testimony or information the HPA relies upon; and 5. A decision based solely and exclusively upon the facts presented at the review. b. The complainant or the HPA may arrange, in advance and at the expense of the party making the arrangements, for a transcript of the review. Any interested party may purchase a copy of the transcript. c. The HPA may render a decision without proceeding with the hearing if it is determined that the issue has been previously decided in another proceeding. d. At the hearing, the complainant must first make a showing of entitlement to the relief sought, and thereafter, the HPA must sustain the burden of justifying the action or failure to act against which the complaint is directed. 19

21 e. The hearing shall be conducted informally by the Hearing Panel and oral or documentary evidence pertinent to the facts and issues raised by the complaint may be received without regard to admissibility under the rules of evidence applicable to judicial proceedings. The Hearing Panel shall require the HPA, the complainant, counsel and other participants or spectators to conduct themselves in an orderly fashion. Failure to comply with the directions of the Hearing Panel to obtain order may result in exclusion from the proceedings or in a decision adverse to the interest of the disorderly party. f. If the complainant or the HPA representative fails to appear at a scheduled hearing the Panel may make a determination to postpone the hearing for a period not to exceed ten (10) calendar days, or make a determination that the party has waived his right to a hearing. Both the complainant and the HPA shall be promptly notified of the Panel s decision. Such determination shall not constitute a waiver of the complainant s right to thereafter contest the HPA s disposition of his complaint in an appropriate judicial proceeding. 7. DECISIONS OF THE HEARING PANEL a. The Hearing Panel shall prepare a written decision, together with the reasons therefor, within ten (10) days after the hearing. A copy of the decision shall be sent to the complainant, the County Administrator/Controller and to the Housing Program Administrator who shall retain a copy of the decision in the complainant s file. A copy of such decision, with all names and identifying references deleted, shall be maintained on file by the HPA and made available for inspection by a prospective complainant, their representative, or the HPA. b. A decision by the Hearing Panel in favor of the HPA, or which denies relief requested by the complainant in whole or part shall not constitute a waiver of, nor in any manner whatever, any rights the complainant may have to a trial de novo or judicial review in any judicial proceedings, which may thereafter be brought in the matter. c. Should the above listed efforts fail to resolve all outstanding issues, the HPA must seek the services of the UPCAP Conflict Resolution Program. This program is provided by UPCAP Services, Inc. at th Avenue South, PO Box 606, Escanaba, MI 49829, Phone (906) , upcapinfo@upcap.org. The costs, if any, for using mediation services shall be divided evenly between the parties involved in the complaint. d. After all previous steps have failed to resolve the complaint, the HPA may contact MSHDA in writing, detailing the complaint and verifying its compliance with above listed steps. Only then will MSHDA review the identified concerns. 20

22 SECTION XI DISPUTE RESOLUTION PROCEDURE 1. APPLICABILITY This dispute resolution procedure is applicable to all individual disputes and housing rehabilitation or discrimination disputes, as defined in subsection 2.a. hence under, between a contractor and a client or housing program applicant. 2. DEFINITIONS a. Dispute is defined as any disagreement between a contractor and a client or housing program applicant regarding faulty workmanship, materials, final acceptance and payment or contractor and/or contactor employee s action or failure to act in accordance with Federal, State and local fair housing policies or equal opportunity requirements. b. Complainant is defined as any contractor, client or applicant whose rights, welfare or program status are or may be adversely affected by a contractor, client or applicant s action or failure to act, and who files a grievance with the HPA with respect to such action or failure to act. 3. INITIAL SETTLEMENT OF A DISPUTE a. Before contacting the Housing Program Administrator, the potential complainant shall first attempt to avoid a dispute by contacting the other party to discuss their concerns. The concerns shall be presented to the other party in person, either orally or in writing, and discussed in a non-confrontational manner. b. If the concerns cannot be settled between the two parties involved, the potential complainant may request that the Housing Program Administrator attempt an informal settlement of the dispute. 4. INFORMAL SETTLEMENT OF A DISPUTE a. The dispute shall be presented in writing, to the Housing Program Administrator so that the dispute may be informally discussed and settled without a review. This informal discussion is prerequisite to a review. Disputes presented for informal discussion should be filed by the complainant or their representative within a reasonable time, not in excess of ten (10) calendar days of the initial attempt to settle the dispute with the other party. 21

23 b. A summary of each informal discussion shall be prepared by the Housing Program Administrator in attendance within a reasonable time, not in excess of fifteen (15) calendar days, one copy of which shall be delivered or mailed to each party in the dispute, and one retained in the complainant s file. The summary shall specify: 1. The names of the participants, the date(s) of meeting, and the nature of the dispute; 2. The proposed disposition of the dispute and the specific reasons therefore; 3. The right of the complainant to a review; and 4. The procedure by which a review may be obtained. c. If the Housing Program Administrator fails to resolve the dispute, he/she shall: 1. Inform the County Administrator of the outstanding dispute. The County Administrator/Controller will conduct a review of all cases that cannot be successfully resolved by the Housing Program Administrator. 4. PROCEDURE TO OBTAIN A REVIEW a. Any dispute shall be personally presented, if possible, either orally or in writing, to the County Administrator/Controller so that the dispute may be informally discussed and settled without a formal hearing. This informal discussion is prerequisite to a formal hearing. Disputes presented for review should be filed by the complainant or their representative within a reasonable time, not in excess of ten (10) calendar days of the Housing Program Administrator s summary of the dispute. b. A summary of the review shall be prepared by the Housing Program Administrator in attendance within a reasonable time, not in excess of fifteen (15) calendar days, a copy of which shall be delivered or mailed to both parties in the dispute, one copy mailed or delivered to the County Administrator/Controller, and one retained in the complainant s file. The summary of the review shall specify: 1. The names of the participants, the date(s) of meeting, and the nature of the dispute; 2. The proposed disposition of the dispute and the specific reasons therefore; 3. The right of the complainant to a formal hearing; and 4. The procedure by which a formal hearing may be obtained. 22

24 c. If the complainant is dissatisfied with the proposed disposition of his dispute as stated in the summary of review, he/she must submit a written request for hearing to the County Administrator/Controller within a reasonable time, not in excess of ten (10) calendar days after receipt of the summary of review. The written request shall be signed by the complainant, and shall specify: 1. The reasons for the dispute; and 2. The action or relief sought. d. The County Administrator/Controller shall schedule the hearing with the Hearing Panel and shall inform the complainant thereof in writing. e. If the complainant does not request a hearing within the time period allowed in Subsection a. above, he/she waives his/her right to a hearing, and the County Administrator/Controller s proposed disposition of the dispute will become final. This shall not, however, constitute a waiver of the complainant s right thereafter to contest the disposition of his/her dispute in an appropriate judicial proceeding. f. The Hearing Panel shall be appointed by the County Administrator/Controller on an as needed basis. The Hearing Panel shall consist of at least three (3) persons, including a community representative and a person with building/construction experience. 5. PROCEDURES GOVERNING THE HEARING a. The complainant shall be afforded a fair hearing providing the basic safeguards of due process which shall include: 1. The opportunity to examine before the hearing and, at the expense of the complainant, to copy all documents, records, and regulations of the HPA that are relevant to the hearing. Any document not made available after being requested by the complainant may not be relied upon by the HPA at the hearing; 2. The right to a private hearing, unless the complainant requests and the other party agrees to a public hearing. This shall not be construed to limit attendance of persons with a valid interest in the proceedings; 3. The right to be represented by counsel or another person chosen as a representative; 4. The right to present evidence and arguments in support of his/her claim, to controvert evidence relied upon by the other party, and to confront and cross-examine all witnesses whose testimony or information the other party relies upon; and 5. A decision based solely and exclusively upon the facts presented at the review. 23

25 b. Either party to the dispute may arrange, in advance and at the expense of the party making the arrangements, for a transcript of the review. Any interested party may purchase a copy of the transcript. c. The HPA may render a decision without proceeding with the hearing if it is determined that the issue has been previously decided in another proceeding. d. At the hearing, the complainant must first make a showing of entitlement to the relief sought, and thereafter, the other party shall sustain the burden of justifying the action or failure to act against which the dispute is directed. e. The hearing shall be conducted informally by the Hearing Panel and oral or documentary evidence pertinent to the facts and issues raised by the dispute may be received without regard to admissibility under the rules of evidence applicable to judicial proceedings. The Hearing Panel shall require the HPA, the parties to the dispute, any counsel and/or other participants or spectators to conduct themselves in an orderly fashion. Failure to comply with the directions of the Hearing Panel to obtain order may result in exclusion from the proceedings or in a decision adverse to the interest of the disorderly party. f. If either party to the dispute fails to appear at a scheduled hearing the Panel may make a determination to postpone the hearing for a period not to exceed five (5) working days, or make a determination that the party has waived his right to a hearing. Both parties to the dispute and the HPA shall be promptly notified of the Panel s decision. Such determination shall not constitute a waiver of either party s right to thereafter contest the Hearing Panel s disposition of the dispute in an appropriate judicial proceeding. 7. DECISIONS OF THE HEARING PANEL a. The Hearing Panel shall prepare a written decision, together with the reasons therefore, within ten (10) days after the hearing. A copy of the decision shall be sent to each party in the dispute, to the County Administrator/Controller and to the Housing Program Administrator who shall retain a copy of the decision in the complainant s file. A copy of such decision, with all names and identifying references deleted, shall be maintained on file by the HPA and made available for inspection by a prospective complainant, their representative, or the HPA. b. A decision by the Hearing Panel in favor of either party, or which denies relief requested by the complainant in whole or part shall not constitute a waiver of, nor in any manner whatever, any rights the complainant may have to a trial de novo or judicial review in any judicial proceedings, which may thereafter be brought in the matter. 24

26 c. Should the above listed efforts fail to resolve all outstanding issues, the HPA shall direct the parties to seek the services of the UPCAP Conflict Resolution Program. This program is provided by UPCAP Services, Inc. at th Avenue South, PO Box 606, Escanaba, MI 49829, Phone (906) , The costs, if any, for using mediation services shall be divided evenly between the parties involved in the dispute. d. After all previous steps have failed to resolve the dispute, the HPA may contact MSHDA in writing, detailing the dispute and verifying its compliance with above listed steps. Only then will MSHDA review the identified concerns. 25