Montgomery County CDBG Housing Guidelines Hurricane Ike Disaster Recovery Assistance Program

Transcription

1 Montgomery County CDBG Housing Guidelines Hurricane Ike Disaster Recovery Assistance Program I. Purpose of the Program a. Montgomery County has damaged scattered family housing caused by heavy winds and rain from Hurricane Ike. The program goal is to repair or replace as many homes as the allocated funding will provide for but at a minimum of 56 existing low-to- moderate income households defined as households with income equal to or less than 80% of area median family income. The homes must be single family and owner-occupied homes. This will depend on 1) the number of eligible applicants and 2) repair and replacement costs for each home site. b. This program will preserve the current housing areas by providing rehabilitation, reconstruction or new construction to damaged housing located at various sites throughout the County. The existing housing stock will be hardened by reducing the number of mobile homes and increasing the number of affordable, windresistant, slab-anchored homes in all feasible situations. c. Montgomery County has been awarded 2009 CDBG Disaster Recovery funds in the amount of $6,909,237. II. Types and amounts of assistance a. Rehabilitation activities will consist of repairing and/or replacing structural, exterior, interior, electrical, plumbing, water well and septic systems as needed. Reasonable accommodations such as ramps, grab bars, and accessible showers will be installed when necessary. Rehabilitations will cover up to $60,000 per home, with an additional $30,000 for elevation assistance if required. b. New construction and replacement/reconstructed housing will be modular, where feasible, on a perimeter wall foundation, using embedded mudsill anchors, Zone 1 wind rating, between 800 and 1400 square feet (depending on family size), and will include demolition of the current home, and well and septic remediation as needed. Modular homes will include composite roofs, hardiboard siding, energy efficient doors and windows, CA/CH, energy star appliances and will meet energy star certifications. New HUD-code manufactured homes will be used only when it is not feasible to replace the damaged home with a modular home. New construction and replacement/ reconstructed housing will cover up to $130,000 per home. If elevations are required, an additional $30, per home site may be spent as necessary. If home demolitions, well or septic systems are required, these will be a part of the new construction cost. c. Montgomery County Community Development will screen applicants using an eligibility matrix, preliminary repair assessments and cost estimates will be done on each home, then each application will be scored and ranked based on predetermined scoring criteria. Upon initial inspections, repair or new construction determinations will be made as follows: less than 26% of pre-storm value of CAD (or $2000 whichever is greater) damage will be referred to local non-profit organizations to do minor repair work, damage estimates between 26% to 75% of 1

2 the pre-storm value of CAD will be classified as rehabilitation, and damage estimates greater than 76% of the pre-storm value of CAD will be qualify for reconstruction. No repair or rehabilitation work will be performed on manufactured homes. Manufactured home replacement will occur only when no modular home solution is feasible. d. Rehabilitation activities will consist of repairing and/or replacing structural, exterior, interior, electrical, plumbing, water well and septic systems as needed for both reconstruction and/or new construction. Ramps, grab bars, and accessible showers will be installed when necessary. Rehabilitation may be used as determined by the Montgomery County Community Department Director in situations where extenuating circumstances or the homeowners preferences and/or best interests provide for rehabilitation instead of replacement or reconstruction. e. In all possible situations, reconstruction or new construction housing will be modular on a perimeter wall foundation, using embedded mudsill anchors, Zone 1 wind rating, between 800 and 1400 square feet (depending on family size), and will include demolition of the current home, and well and septic remediation as needed. Modular homes will include composite roofs, hardiboard siding, energy efficient doors and windows, CA/CH, energy star appliances and will meet energy star certifications. New HUD-code manufactured homes will be used only when it is not feasible to replace the damaged home with a modular home. f. CDBG Disaster Recovery Program funds may not be used for luxury items. Luxury items include, but are not limited to, swimming pools, fences (other than those required for security), television, and satellite dishes, and dishwashers. Air conditioners and heating systems, water heaters, stoves, and refrigerators are eligible for replacement under the CDBG Disaster Recovery Program. Appliances and housing components that are not integral to the structure of the home such as washers, dryers, dishwashers, detached garages and carports are not eligible. Reconstruction or new construction will cover up to $130,000 per home. g. If elevations are required, an additional $30, per home site may be spent as necessary. If home demolitions, well or septic systems are required, these will be a part of the reconstruction/new construction cost. h. Demolitions for slum and blight areas may not exceed $5, per housing structure. i. Unforeseen costs associated with repair, reconstruction or new construction work, such as mandatory first year hazard and flood insurance coverage (for properties located in a 100 year flood plain) and undetected mold abatement, will be covered within the budgeted amounts for each housing activity whenever feasible. Montgomery County will coordinate with the General Land Office (GLO) to amend the program contract if necessary. j. Contractors will adhere to the contract including performance standards and the general specifications. No work will be approved except that which is established in the contract and in approved change orders. All change orders shall be in 2

3 writing and signed by Montgomery County, Contractors, and Applicants. Any unforeseen or hidden condition should be reported to Montgomery County immediately. Any item that conflicts with these standards should be reported immediately by the contractor. k. During construction, the following damages will be covered by grant funds, within each project s respective funding capacity: fences and sidewalks. If required by an HOA, city ordinance or ADA requirement, front walks (only) will be replaced as regulations require. Otherwise front walks (only) will be replaced by gravel and parking areas will be replaced by blacktop. Driveways longer than two vehicle lengths will be replaced with gravel. III. Affirmative Marketing Plan a. In addition to marketing through widely available media outlets, Montgomery County will take additional measures to affirmatively market the CDBG Disaster Recovery Fund program services, as follows: b. Montgomery County will advertise with the media outlets which provide unique access for persons who are considered members of a protected class under the Fair Housing Act including: Ethnic newspapers and/or radio stations. c. In addition, Montgomery County will take measures to make the program accessible to persons who are considered members of a protected class under the Fair Housing Act: Hold informational meetings in buildings that are compliant with the Americans with Disabilities Act (ADA), provide sign language assistance when requested if possible, and provide special assistance for those who are visually impaired when requested. d. Documentation of all marketing measures used, including copies of all advertisements and announcements, will be retained by Montgomery County and made available to the public upon request. e. Whenever possible, Montgomery County will use the Fair Housing logo in advertising, post Fair Housing posters and related information, and, in general, inform the public of its rights and obligations under Fair Housing regulations. f. Special arrangements: Arrangements can be made for persons with special needs, language interpretation needs, or for persons needing alternate times and locations by telephoning or ing a request. IV. Program marketing procedures a. Montgomery County advertised this program through notices posted throughout the County, newspaper articles, and radio advertisements in both English and Spanish. The open enrollment period for this program was reported on a KHOU news program and listed on their website on October 23, Notices were provided to three County Community Centers, five libraries, the County Courthouse building, the East county Courthouse annex, six school districts, officials, and individual schools, fourteen non-profit organizations, two state and federal government offices, a hospital, and four Walmart locations. Areas and 3

4 neighborhoods targeted were those with a high demographic level of low to moderate income persons, elderly, and families with children under the age of six. b. Applications are accepted in the Montgomery County Community Development Office, this mailing address is provided in the notices and advertisements for mail in applications. Coordination has been made with various local non-profit organizations previously commissioned by FEMA, these organizations are screening and submitting applications on behalf of their clientele lists. Toll free numbers are provided for call in assistance, and special delivery of applications and assistance is available for anyone who may be homebound, impaired, disabled, or unable to come in to our office or a non-profit organization. V. Application Process a. The method of approach for program participation is to assist households which have the most significant damage, families with greater financial needs and burdens and homes needing replacement will be given priority. Applications will be screened using an eligibility matrix, preliminary repair assessments and cost estimates will be done on each home, each application will be scored and ranked based on pre-determined scoring criteria. The order of priority will be homes destroyed, severe damage uninhabitable, severe damage habitable, moderate damage, and minimal damage. Applications will then be ranked according to the date the application was received. b. The open application period was October 26 November 16, A second application period will be announced on the Montgomery County web site if additional funds are available to award assistance to more households. c. Incomplete applications are accepted and will be referred to case workers, all efforts will be made to complete each application submitted in order to give each applicant an equal opportunity and provide a legitimate basis of equality for all applicants. If these applications remain incomplete after 30 days, then the County will send the homeowner a deficiency letter. VI. Participant eligibility requirements a. Properties must be single family, owner-occupied, primary residence located in Montgomery County. The applicant must provide evidence of homeownership. Proof of property ownership will be obtained through deeds or evidence of fee simple title to the property. In the absence of proof of property ownership, to be eligible for assistance, the applicant household must provide evidence of ownership interest in the property by doing the following: 1) Provide to Montgomery County an affidavit that sets forth how they are the successors of interest, through devise, intestacy, or conveyance, to the holder(s) of record title and that either there is no other person entitled to claim any ownership interest in the property; or each person who may be entitled to claim an ownership interest in the property has given their 4

5 consent or cannot be located after a reasonable effort and provide evidence of this to Montgomery County. 2) prove that they have been, for the current and last preceding tax year, the person reflected on the tax rolls as the owner and the person liable for property taxes; or other evidence, reasonably acceptable to the GLO, that establishes they have ownership of the property. 3) Montgomery County may accept alternate forms of ownership as approved by the GLO. b. Principal residency of damaged home at the time Hurricane Ike occurred (September 13, 2008). This can be evidenced by a homestead exemption status or active utilities in the name of the applicant for the billing cycle that included 9/13/2008. c. Low to moderate income households with priority to elderly households and families with children under six. d. Actual physical damage to the home caused by Hurricane Ike. e. Head of household is a US citizen or legally permitted in the US. f. Property taxes are currently paid to date (or proof of payment arrangement, provided there are no tax suits filed and homeowner is current on the repayment plan, or deferment on property taxes, or an approved tax deferment). g. In accordance with a three year Unsecured Forgivable Promissory Note the homeowners are responsible for occupying the residency for a three year period, they will maintain taxes on the property and they will maintain the property in good condition. They must also agree to maintain flood and hazard insurance throughout the affordability period. Failure to maintain flood insurance WILL result in the lack of future federal assistance. Failure to maintain hazard insurance MAY result in the lack of future federal assistance. h. The homeowner must be current on federal, state and local debt such as IRS, child support, student loans, and property taxes. The homeowner may be eligible for assistance if they are delinquent but current on an approved repayment agreement. If there is a filed suit/judgment/lien, the homeowner is not eligible for assistance. Texas Government Code , , and i. Duplication of Benefits, the following are sources of funding assistance provided for structural damage and loss that are considered a duplication of benefits and under federal law must be deducted from the grant assistance amount: FEMA Individual Assistance (IA), FEMA National Flood Insurance Program (NFIP), private insurance, United States Department of Agriculture (USDA), Increased cost of Compliance (ICC), and Small Business Administration (SBA). Any funds received by the homeowner to repair/replace their damaged home is considered a duplication of benefit if the homeowner is not able to document that those funds received for the purpose of repair/replacement were used as they were intended. VII. Property eligibility requirements 5

6 a. Areas serviced by this program include the legal established boundaries for Montgomery County. The program targets low to moderate income persons, the elderly, and families with children under six years old, are located County-wide. b. This program assists single family, owner-occupied site-built, mobile homes and modular housing units. c. Reconstruction or new construction for properties located in a 100 year floodplain will be elevated in order to alleviate floodplain conditions. d. Properties located in airport runway clear zones are ineligible for federal assistance. e. Properties will be inspected for lead-based paint and asbestos. Federal, state and if applicable, local standards will be followed in abating and disposing of these conditions. VIII. Property owner requirements a. The homeowner s responsibilities will include ensuring the property is clear of trash, old cars, junk, old equipment, appliances and materials not in use, and other unsightly, unsafe and/or unsanitary conditions. Local non-profit organizations are available to provide assistance to help meet safe and sanitary work conditions on eligible participant properties. b. Homeowners must agree to comply with the city/county domestic animals requirements/restrictions. IX. Building contractor procurement and selection process a. The procurement process will involve the Community Development Department coordinating with the Purchasing Department in developing the specifications and the scope of the work to be performed in this program. Using required purchasing procedures, the Community Development Department will contract any necessary environmental abatements, the Purchasing Department will advertise for bids for home repair and replacement, demolition and elevation as needed. Based upon the qualified bid packages submitted and approval by the County Commissioner s Court, contractors selected will be placed under contract for various portions of the program work to be performed within the guidelines established by the contract between Montgomery County and the GLO. b. Contract qualifications and requirements include Non-Collusion Affidavit and Debarment Certificate, posting of a bid bond, a performance bond, and a payment bond, provide a residence certification, current worker s compensation, comprehensive general liability and auto insurance, and pursue HUD Section 3 labor goals. New HUD-code manufactured homes must be purchased through a licensed retailer/installer. c. Montgomery County Purchasing Department staff also research the EPLS and the State of Texas Debarred Vendor List databases for information on contractors who submit bids to determine they are not debarred from performing work on federal contracts. d. The bidding process will involve the Community Development Department coordinating with the Purchasing Department in developing the specifications and 6

7 the scope of the work to be performed in this program. Using required purchasing procedures, the Purchasing Department will advertise for bids for home repair and replacement, demolition and elevation as needed. e. All contracts shall include the following Section 3 Clause: The work to be performed under this contract is subject to the requirements of section 3 of the Housing and Urban Development Act of The purpose of Section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD assisted projects covered by Section 3, shall, to the greatest extent feasible, be directed to low and very low-income persons, particularly persons who are recipients of HUD assistance for housing. The parties to this contract agree to comply with HUD s regulations in 24 CFR part 135, which implement Section 3. Parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the part 135 regulations. The contractor agrees to send to each labor organization or representative or workers with which the contractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers representative of the contractor s commitments under this Section 3 clause, and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the Section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; and the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin. The contractor agrees to include this Section 3 clause in every subcontract subject to compliance with regulations in 24 CFR part 135, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this Section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 CFR part 135. The contractor will not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR part 135. The contractor will certify that any vacant employment positions, including training positions, that are filled (1) after the contractor is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 CFR part 135 require employment opportunities to be directed, were not filled to circumvent the contractor s obligations under 24 CFR part 135. Noncompliance with HUD s regulations in 24 CFR part 135 may result in sanctions, termination of this contract for default, and debarment or suspension from future HUD assisted contracts. Parties to this contract subject to Section 3 provisions to the maximum extent feasible, but not in derogation of section 7(b). f. Contractors criminal history and history of unsatisfied judgments will be considered when evaluating their qualifications to participate in this program. Crimes of moral turpitude may be evaluated on a case by case basis. X. Construction Standards and Lead-Based Paint requirements a. Local building codes, specifications, standards, and health and safety codes for new construction / reconstruction are all constructed and inspected in accordance 7

8 with the International Residential Code, repair and rehabilitation work will be constructed and inspected in accordance with Housing Quality Standards. All reconstructed and newly constructed housing units comply with the universal design features in new construction, established by All regulations include compliance with Section 31 of the Federal Fire Prevention Control Act of a. REScheck software (or equivalent) will be used to certify the energy efficiency for new home construction. b. The process for reviewing housing built prior to 1978 will include the presence of children in the home, whether the home is for senior residence only, whether the occupants of the home are disabled, the condition and description of the paint on the home s exterior, the condition and description of the paint on the home s interior, whether or not the home is a mobile home unit, and whether the job involves a painted area. c. Initial inspections are conducted according to the GLO Initial Inspection checklist. If it is obvious during the initial inspection that the home will qualify for replacement, it is permissible to use the short version of the initial checklist. Periodic monitoring will utilize the Mid Construction Inspection checklist. Final inspections are conducted according to the GLO Final Inspection checklist. Photos will be made and retained in the files of the front exterior, back exterior, and interior views of the home before, during and after construction. XI. Dispute Resolution and Grievance Process a. Any disputes between Montgomery County and vendors, contractors, and/or subcontractors, related to goods provided or services performed, are maintained and resolved in accordance with the procedures expressed in Chapter 2251 of the Texas Government Code. The specifications clause in the Montgomery County Bid Form states: In the event any conflict arises between bid specifications approved by the County and the final approved contract, the bid specifications shall rule and take precedence. The apparent silence of these specifications as to any detail or to the apparent omission from it of a detailed description concerning any point, shall be regarded as meaning that only the best commercial practices are to prevail. All interpretations of these specifications shall be made on the basis of this statement. b. Applicants can file complaints or grievances to Montgomery County on any issue or concern that may arise during their application review period and/or during the time that work is being done on their home, or within the timeframe of this program. Appeals may be submitted in writing to: Appeals Committee 501 N. Thompson Suite 200 Conroe, TX The appeals committee consists of appointees from each precinct plus at-large appointees. The committee will review your file and respond within two weeks of receipt of the written appeal. If the applicant is not satisfied with the Montgomery county appeals committee decision, they can further appeal to the GLO as necessary. XII.Contract Management 8

9 a. One hundred percent performance bonds on public works contracts in excess of $100, and one hundred percent payment bonds on public works contracts in excess of $25, These bonds in the amounts of the contracts are executed for the protection of the State or the local governmental entity awarding the contract and to insure payment to all persons supplying labor and material in the execution of the work described in the contract. These bonds also secure the fulfillment of the contractors obligations in accordance with the plans, specifications and contract documents. b. Initial draws may be requested by contractor at 33%, 66%, and 100% completion for 90% / 10% retainage. No funds will be released for advances. All initial draws must be representative of work completed. Upon 100% completion of the project, provided Final Inspection passes, the contractor may request the Final Draw and submit complete draw documents as required. A 10% retainage of the entire activity budget will be retained for 30 days. Any warranty items that come up need to be addressed during this time. After 30 days, a Post Inspection will be conducted and upon passing, the retainage draw will be released provided complete draw documents are submitted and approved. XIII. Record Keeping CDBG Disaster Recovery Program files and financial records will be maintained and accessible for monitoring and auditing purposes for a period of five years after contract close-out. Open records requests will be handled in accordance with the Texas Open Records Act. XIV. Montgomery County Employees Not to Be Held Liable. a. No member, officer, agent, or employee of Montgomery County shall be personally liable concerning any matters arising out of or in relation to, the commitment of CDBG Disaster Recovery Fund Program funds with regard to feasibility or viability of the proposed project. 1) The Community Development Director shall have the right to change, modify, waive or revoke all or any part of these guidelines in writing and approval by the GLO. 2) No member of the governing body of Montgomery County and no other official, employee, or agent of Montgomery County who exercises policy or decision-making functions or responsibilities in connection with the planning and implementation of this Program shall be eligible for rehabilitation assistance, in accordance with 24 CFR Section (h), Conflict of Interest. XV. Addendum a. Desired changes and/or additions to this program design may be allowed. Please cite the section that is to be replaced along with the proposed and/or 9

10 alternative language. Only amendments submitted in this way will be considered for the GLO approval. 10