POLICIES & PROCEDURES

Transcription

1 PLAQUEMINES PARISH GOVERNMENT HURRICANE ISAAC CDBG DISASTER RECOVERY PROGRAM PLAQUEMINES HOUSING ASSISTANCE PROGRAM (PHAP) POLICIES & PROCEDURES JUNE, 2014 PREPARED BY PLAQUEMINES PARISH GOVERNMENT OFFICE OF THE PARISH PRESIDENT

2 TABLE OF CONTENTS PAGE PURPOSE OF THE PROGRAM... 1 MINOR REHABILITATION TYPE OF ASSISTANCE LEVEL OF ASSISTANCE TERMS OF ASSISTANCE... 2 MAJOR REHABILITATION TYPE OF ASSISTANCE LEVEL OF ASSISTANCE TERMS OF ASSISTANCE... 3 TYPES OF STRUCTURES... 4 RECONSTRUCTION/REPLACEMENT... 4 ELEVATION TYPE OF ASSISTANCE LEVEL OF ASSISTANCE TERMS OF ASSISTANCE... 9 ELIGIBILITY REQUIREMENTS OWNERSHIP OCCUPANCY HOMEOWNER INSURANCE/FEMA CLAIMS MORTGAGE PAYMENTS PROPERTY TAXES PRIORITY ASSISTANCE DUPLICATION OF BENEFITS GRIEVANCE PROCEDURES PAGE i

3 TABLE OF CONTENTS (CONTINUED) PAGE CONFLICTS OF INTEREST/ETHICS POLICY GENERAL OPERATING PROCEDURES GRANT APPLICATION APPLICANT SELECTION AND RANKING INSPECTION ENVIRONMENTAL REVIEW WORK WRITE UP AND COST ESTIMATE CONSULTATION WITH THE APPLICANT BID AWARD AND CONTRACTOR SELECTION FINAL APPROVAL CONTRACT LIEN AND AGREEMENTS CONSTRUCTION TIME FRAME FOR COMPLETION PROGRESS PAYMENTS/COMPLETION OF WORK SCHEDULE OF PAYMENTS MINOR REHABILITATION COMPONENT MAJOR REHABILITATION COMPONENT ELEVATION, RECONSTRUCTION/REPLACEMENT FOLLOW UP WARRANTY ISSUES CONTRACTOR DEFAULT PROPERTY MAINTENANCE DATA MANAGEMENT OPTIONAL VOLUNTARY RELOCATION POLICY EXHIBITS EXHIBIT A, BASIS FOR DETERMINING COST REASONABLENESS PAGE ii

4 PURPOSE OF THE PROGRAM In response to the housing needs resulting from Hurricane Isaac, the Plaquemines Parish Government has established the Plaquemines Homeowner Assistance Program (PHAP) to provide assistance to single family homeowners for needed home repairs. The Program, with funding through the Community Development Block Grant Disaster Recovery (CDBG DR) Program, administered by the Louisiana Office of Community Development/Disaster Recovery Unit, is designed to address this overwhelming unmet need in an effort to improve the housing stock in Plaquemines Parish. The PHAP has been developed to primarily address the repair needs of extremely low tomoderate income homeowners whose homes were damage by Hurricane Isaac; however this does not preclude addressing repair needs of other income groups who otherwise qualify. The objectives of the Plaquemines Homeowner Assistance Program are to: Rehabilitate owner occupied residential structures located within Plaquemines Parish damaged by Hurricane Isaac; Enhance affordability of homeownership for low and moderate income persons; Preserve existing property values by eliminating the blighting influence of substandard properties; and, Provide a safe and sanitary living environment for the occupants. The Plaquemines Homeowner Assistance Program consists of two (2) components: Minor Rehabilitation Homeowner unmet need repairs under $15,000 as a first priority with a local legislative maximum cap of not more than $8,000 per homeowner; and, Major Rehabilitation Homeowner unmet need repairs over $15,000 as a second priority with a local legislative maximum cap of not more than $100,000. MINOR REHABILITATION 1. TYPE OF ASSISTANCE. This component of the Program will provide no more than $8,000 in funding for repairs to homes having unmet housing repair needs not exceeding $15,000 as a result of damages from Hurricane Isaac. Activities to be funded under this component of the Program may include, but are not limited to the following: Replacement or repairs to roofs damaged by Hurricane Isaac; PAGE 1

5 Replacement of damaged attic insulation or installation of standard grade installation; Repairs to ceilings and/or interior walls damaged by the storm; Repairs or replacement of damaged windows and/or exterior doors; and, Repairs to alleviate immediate threats to the health and safety of the occupants. Funds for this component of the Program cannot be used for the following: Any residence not occupied as the primary residence of the applicant at the time of Hurricane Isaac; Work on other buildings not considered the primary residence (detached garage, sheds, barns or recreational camps); Additions to the existing structure; Rehabilitation that affects the historical character or value of a structure as determined by the State Historic Preservation Officer; Repair to free standing equipment or appliance items such as heaters, lamps, fans, window A/C units, refrigerators, etc.; and, Repair or replacement of non essential items (swimming pools and/or Jacuzzis). 2. LEVEL OF ASSISTANCE. The maximum level of assistance under this component of the Program is $8,000 per property. 3. TERMS OF ASSISTANCE. Funding under the Plaquemines Parish Housing Assistance Program will be provided to applicants in the form of a direct grant to the homeowner via a grant agreement recorded with the Plaquemines Parish Clerk of Court. The grant agreement will include but is not limited to the following: Require authorization of payments directly to both the homeowner and the contractor responsible for executing repair work orders; The Homeowner, and all future homeowners, must maintain flood insurance on the property in perpetuity; and For one (1) year following completion of repairs and issuance of a Certificate of Occupancy, the Homeowner must maintain ownership, residency, and property insurance. MAJOR REHABILITATION 1. TYPE OF ASSISTANCE. In accordance with the funding limits cited in paragraph 2, Level of Assistance, this component of the Program will repair or provide replacement housing for homes with unmet housing repair needs in excess of $15,000 as a result of damages from Hurricane Isaac. Activities to be funded under this component of the Program may include, but are not limited to the following: PAGE 2

6 Rehabilitation of the structure and/or components damaged as a result of Hurricane Isaac; Activities directly related to and/or supporting these types of assistance such as handicap accessible features; Repairs required that will eliminate conditions which pose a threat to the health and safety; and, Elevation of the structure to meet the Parish s Flood Damage Prevention Ordinance. Funds for this component of the Program cannot be used for the following: Any residence not occupied as the primary residence of the applicant at the time of Hurricane Isaac; Work on other buildings not considered the primary residence (detached garage, sheds, barns or recreational camps); Additions to the existing structure; Rehabilitation that affects the historical character or value of a structure as determined by the State Historic Preservation Officer; Repair to free standing equipment or appliance items such as heaters, lamps, fans, window A/C units, refrigerators, etc.; and, Repair or replacement of non essential items (swimming pools and/or Jacuzzis). 2. LEVEL OF ASSISTANCE. The maximum level of assistance for the major rehabilitation component of the Program is $100,000 per property. Amounts over the maximum level of assistance may be approved on a case by case basis when special circumstances apply (such as compliance with historic property standards, lead paint abatement, unforeseen damage, etc.). Approval of increases in maximum assistance will be subject to review and approval by the Plaquemines Parish Council upon recommendation of the Program Administrator. As a part of this rehabilitation program, any home determined to be substantially damaged will be required to elevate to meet the Parish s Flood Damage Prevention Ordinance. Substantially damaged properties are those where the cost to rehabilitate the property equals or exceeds 50% of the market value of the structure before the damage occurred. These structures will be eligible to receive additional assistance for costs associated in the elevation of the structure. The maximum level of elevation assistance shall not exceed $50, TERMS OF ASSISTANCE. Funding under the Plaquemines Parish Housing Assistance Program will be provided to applicants in the form of a direct grant to the homeowner via grant agreement recorded with the Plaquemines Parish Clerk of Court. The grant agreement will include but is not limited to the following: Require authorization of payments directly to both the homeowner and the contractor responsible for executing repair work orders; PAGE 3

7 The Homeowner, and all future homeowners, must maintain flood insurance on the property in perpetuity; and For one (1) year following completion of repairs and issuance of a Certificate of Occupancy, the Homeowner must maintain ownership, residency, and property insurance. TYPES OF STRUCTURES Structures eligible for assistance through this program are single family, owner occupied stick built residential structures, and under specific conditions outlined below, manufactured/mobile homes. Factors used to address property eligibility will include, but may not be limited to, the extent of the damage, the age of the home, and structural specifications. Please note, duplexes, condominiums and houseboats are not eligible for assistance under this program. The extent and nature of the damage to the property will be determined after the property has been carefully inspected by the inspection team. Upon completion of inspection, the team will make the determination as to which component of the PHAP Minor Rehabilitation or Major Rehabilitation is appropriate for the specific property. MANUFACTURED/MOBILE HOMES. Owners of manufactured/mobile homes on owned land are eligible for limited types of assistance. Manufactured/mobile homes may be eligible for minor repairs on a case by case basis subject to the approval of the Louisiana Housing Corporation, provided, however, the costs to complete those repairs do not exceed 50% of the pre storm value of the structure. On those manufactured/mobile homes where the costs to repair exceed 50% of the prestorm value of the structure, the homeowner is ineligible for assistance to repair rehabilitate the structure; however, the homeowner is eligible to receive up to $100,000 for reconstruction or replacement housing assistance. In addition, applicants are also eligible to receive up to $50,000 in elevation assistance. Reconstruction/replacement homes shall be limited to a size comparable to the damaged home (within 10% to 15% square footage of damaged structure) and shall comply with all Parish building codes and ordinances (including applicable elevation requirements). Determination of Pre Storm Value. The Parish will determine pre storm value based on available data. The homeowner is allowed to obtain a certified appraisal of the value of the home before the damage occurred at his expense. RECONSTRUCTION/REPLACEMENT For structures qualifying for assistance under this component of the Program, the Housing Specialist/Inspector will complete both the Scope of Work document and the Reconstruction/Replacement Assessment Form. This form will detail the total amount of PAGE 4

8 structural storm damage exceeding 50% of pre storm value. Costs associated with reconstruction/replacement will be included in the total amount of assistance established per property for this program, not to exceed $100,000. Reconstruction. Applicants will be responsible for executing a separate contract with a reconstruction contractor procured by Plaquemines Parish. Assistance will be provided for a property comparable in size to the damaged structure, in accordance with the funding limits established herein ($100,000). Replacement (Manufactured/Modular Homes). Applicants will be responsible for executing a purchase agreement with a qualified manufactured home dealer procured by Plaquemines Parish. Assistance will be provided for a property comparable in size to the damaged structure, in accordance with the funding limits established in previous section ($100,000). New units will be installed in accordance with all applicable Parish, State and Federal building codes. Terms of Assistance. Funding under the Plaquemines Parish Housing Assistance Program will be provided to applicants in the form of a direct grant to the homeowner via grant agreement recorded with the Plaquemines Parish Clerk of Court. The grant agreement will include but is not limited to the following: Require authorization of payments directly to both the homeowner and the contractor/vendor responsible for executing the work order/purchase order; The Homeowner, and all future homeowners, must maintain flood insurance on the property in perpetuity; and For one (1) year following completion of reconstruction/replacement and issuance of a Certificate of Occupancy, the Homeowner must maintain ownership, residency, and property insurance. ELEVATION Properties experiencing 50% or more in damages resulting from Hurricane Isaac and requesting funding under the PHAP will require elevation of the structure to meet the Parish s Flood Damage Prevention Ordinance. Substantially improved and newly constructed structures must be elevated at least one (1) foot higher than the latest FEMA issued base flood elevation. 1. TYPE OF ASSISTANCE. Eligible elevation activities may include but are not limited to: Concrete and block work; masonry work; Drilling and installation of piers, columns or piles; Beams and columns; Embedment and sealant; Concrete walls; Structural steel work; Anchoring and bracing; Lifting, jacking and elevating; Utility relocation and reconnection; PAGE 5

9 Site prep and cleanup; Landings and stairs for all entrances; Breakaway all necessary walks and drives and repair of same damaged during elevation; Foundation and Exterior (detailed below); Install turnbuckle tie downs to stabilize against uplift and lateral movement; All necessary permits; Engineering drawings; Elevation Certificates; Soil Stabilization; Certificate of Occupancy or Completion; Warranty; and, Riggers Insurance. Elevation limitations are detailed as follows: Eligible Improvements must be permanently fixed. Additions to the habitable space of the structure are eligible for assistance only in the following instances: Construction of a utility room above BFE where utilities cannot be stored in the house or there is other cost effective way to elevate the utilities. If space must be constructed, it should be no greater than 100 square feet; Elevation of an existing deck, porch, or stairs; or construction of a new set of steps per minimum code requirements; Where homeowner or members of their family are physically disabled, a physician s written confirmation is required before special access is included in the elevation. Multiple special access points are eligible for funding where necessary to meet code compliance. Where ramps are used to provide access, they shall be designed to meet federal standards for slope and width. Where ramps are not technically feasible, a mechanical chairlift may be installed. Such an installation should be on interior access stairways where possible, and subject to local codes; Other eligible costs will be provided to replace, restore or repair the structure in the following instances: Structures with an attached garage will be elevated to provide at least 8 feet (or as defined by local codes and standards) of clear space. The garage may be moved under the structure to utilize a previous surface; but, must be used only for parking or storage in accordance with local floodplain management ordinances and National Flood Insurance Program (NFIP) criteria. The following repair costs addressing the foundation and exterior of the structure are eligible: Repair to the foundation is eligible where it is necessary for the safe elevation of the structure; PAGE 6

10 Replacement of termite damaged or dry rotted wood framing members are eligible costs when associated with the elevation, or required for recommended seismic bolting or bracing; Minimum costs of exterior sheathing associated with what was damaged or removed during the elevation process only. Exterior finish must meet NFIP flood resistant materials and must meet local codes; Insulation for pipes when required by local codes and standards; Seismic upgrades per local and/or state codes as required, including bolting structure to foundation, and cripple walls; Rough grade of yard and seeding of grass if damaged by equipment during the elevation process or where the elevation action affects slopes; and Miscellaneous items such as sidewalks and driveways. Ineligible elevation repairs include, but are not limited to: Structures not consider the primary residence (detached garage, shed and/or barns); Additions, expansions, or elevations of appurtenances are ineligible except as noted above; Rehabilitation deemed as damaging to the historical character or value of a structure by the State Historic Preservation Officer; Repair or replacement of non essential items such as swimming pools and/or Jacuzzis; Secondary residences (e.g. summer homes and guest cottages not used as permanent, year round dwellings); Properties located in the regulatory floodway or on federal leased land; Funds may not be used to elevate a masonry chimney. If a fireplace is the sole source of heating, funds will be used to purchase and install the least expensive heating system adequate to meet the minimum local code requirements; HVAC systems cannot be expanded or increased in size and capacity unless the owner pays such costs beyond the HVAC s capacity to service the square footage of the original pre disaster structure; Where existing underground utility lines have deteriorated, or do not meet code requirements, additional costs to repair such facilities shall not be eligible for reimbursement; An elevation that was begun or completed prior to completion of an Environmental Review and prior to the applicant s receipt of written approval of the project for funding is ineligible for assistance; A new structure which replaces a structure damaged by the 2008 flood will not be eligible for funding; Costs to elevate higher than the standard of one foot above BFE are not eligible. Landscaping costs are ineligible except as noted above; Elevations within an acquisition area designated by Louisiana Parishes are not eligible for funding; PAGE 7

11 Construction of decks or porches, whether or not they existed prior to the flood or the elevation, except those that must be removed in order to do the elevation properly or as noted above; The costs to make improvements in cases where existing floor systems have been inadequately designed or constructed with undersized materials are not eligible for assistance; Costs for replacement of utility service components which are undersized, of inadequate capacity, or are unsafe are ineligible unless directly related to the action of elevating (i.e. well pumps); and New furnaces are ineligible except as noted above. 2. LEVEL OF ASSISTANCE. Costs associated for elevations will be in addition to the level of rehabilitation/reconstruction assistance per property established for this program, with a maximum level of assistance not to exceed $50,000. A determination of property elevation will be made at the time of property inspection and preceding the development of the rehabilitation scope of work. This determination will be conducted by the Housing Inspector/Specialist. If it is determined that the property will undergo substantial improvements under the PHAP, a separate elevation scope of work will be developed based on the inspection. Please note, applicants will be required to request and apply all applicable elevation funding, e.g. Increase Cost of Compliance (ICC) funding to project prior to final calculation and approval of PHAP award amount. Plaquemines Parish will utilize the Cost Reasonableness Standards and Unit Cost Guides for Elevation Programs provided by the State of Louisiana Office of Community Development, Disaster Housing Unit in order to ensure that mitigation activities are cost beneficial. Elevation Program unit cost guides are based on: Type of foundation; Height of Foundation; Square footage of the home; Utility extensions; and, Miscellaneous items such as: sidewalks, driveways, decks, and porches If additional work is required by HMGP and/or other Parish Departments as a condition of Permit issuance, and if such work is not listed as eligible above, the owner will be required to provide matching funds equal to the amount of the cost to complete the required work. In no event shall the Parish approve awards for work if it does not determine the structure to be physically sound and capable of being raised safely. Additionally the Parish will not approve an application or provide an award if the property is in violation of any applicable State or local code or ordinance, unless such violations are corrected as a PAGE 8

12 result of the work paid for by Elevation/Rehabilitation/Reconstruction assistance and/or owner s contribution, if needed. The Parish shall not approve awards for work required to repair a condition for which the applicant has received, or will receive, an insurance settlement or funds from another source (such as SBA) to pay for the repair except to augment the insurance or other funds in cases where such funds are insufficient to make the required repairs in compliance with all applicable codes or ordinances. Work by the applicant may not be a part of the contract or award. No "volunteer" assistance is allowed primarily for liability reasons. 3. TERMS OF ASSISTANCE. Funding under the Plaquemines Parish Housing Assistance Program for elevations will be provided to applicants in the form of a direct grant to the homeowner via grant agreement recorded with the Plaquemines Parish Clerk of Court. The grant agreement will include but is not limited to the following: Require authorization of payments directly to the contractor responsible for elevation work order; The Homeowner, and all future homeowners, must maintain flood insurance on the property in perpetuity; and For one (1) year following completion of the elevation and issuance of a Certificate of Occupancy, the Homeowner must maintain ownership, residency, and property insurance. Applicants will be responsible for executing a separate elevation contract with an elevation contractor procured by Plaquemines Parish on behalf of the applicants. ELIGIBILITY REQUIREMENTS Applicants must be an individual or family who solely owns and occupies (or was occupying) a single family residential property as their primary residence that was damaged by Hurricane Isaac. The damaged home must be located in Plaquemines Parish. 1. OWNERSHIP. The applicant must currently own the damaged home and property. The applicant must also have owned the damaged home and property at the time Hurricane Isaac occurred in Plaquemines Parish. Applicants will be required to provide documentation proving ownership of their property (currently, as well as at the time the hurricane occurred). Applicants who do not own the property, but whose home is located on familyowned land will be considered on a case by case basis. The following types of ownership will not be accepted: leasehold interest, contracts for sale, quit claim deed, bond for deed, rent to own, lease to own. PAGE 9

13 Proof of ownership for applicant eligibility to the PHAP will be accepted as follows: 2012 Plaquemines Parish Tax Records demonstrating ownership and applicable homestead exemption for the person(s) and property requesting PHAP funds; Copy of property deed with copy of mortgage documentation from lender certifying mortgage is in good standing. If no mortgage is held on the property, a copy of lien release/payoff letter from lender will be accepted. Special Circumstances Related to Applicant Ownership may include the following: Multiple Individuals on Property Deed All applicants should complete and sign the PHAP application. All should be present at closing and all should sign closing documents; unless one is granted Power of Attorney for the others on the deed. Incapacity or Infirmity of Applicant If an applicant is incapacitated due to illness or other infirmity, someone with a legal right to bind that person, as is provided by a Power of Attorney should be eligible to apply for assistance on behalf of the Applicant. Death of Homeowner(s) If the homeowner has died since the time of the storms, an heir should have been placed in legal possession of the property to be eligible for assistance in place of the deceased owner. 2. OCCUPANCY. The applicant must have occupied the damaged home and property as their primary residence at the time Hurricane Isaac occurred in Plaquemines Parish. Applicants will be required to provide documentation proving occupancy of their property at the time of Hurricane Isaac occurred. If the home is habitable, the applicant must currently reside therein. The following documentation will be accepted in the following order to establish occupancy at the time of Hurricane Isaac: Copy of electric, gas, water, sewage/trash, cable television, internet service or landline phone bill. The bill must confirm that service was provided in the month preceding Hurricane Isaac and must match the name and address submitted for assistance on the PHAP intake application; If copies of bills are unavailable, applicant may provide a certified letter on company/utility letterhead from electric, gas, water, sewage/trash, cable television, internet service or landline phone provider certifying service activation in the month preceding the applicable storm with the customer contact information matching the name and address to be submitted for assistance on the PHAP intake application; Applicant driver s license matching the name and address to be submitted for assistance on the PHAP intake application; Copy of credit card bill sent to damaged residence in month preceding storm with customer contact information matching the name and address to be submitted for assistance on the PHAP intake application; PAGE 10

14 Copy of bank statement sent to damaged residence in month preceding storm with customer contact information matching the name and address to be submitted for assistance on the PHAP intake application; Copy of the applicant s insurance policies in place at time of storm covering the home or the contents of the home. Customer contact information must match the name and address to be submitted for assistance on the PHAP intake application. 3. HOMEOWNER INSURANCE/FEMA CLAIM. Applicants, who had insurance at the time of the Hurricane Isaac, must provide proof of paid homeowner s insurance for the year that included Hurricane Isaac, a documented insurance claim, or a FEMA claim to confirm that repairs needed were caused by storm damage as a result of Hurricane Isaac. In addition, eligible applicants that receive grant funds under this program will be required to obtain and provide proof of flood insurance, if located in a special flood hazard area. Please note, applicants that received compensation for damages sustained during Hurricanes Katrina, Rita, Gustav and/or Ike and who did not have required flood insurance coverage during the period of landfall and subsequent damage from Hurricane Isaac are ineligible to receive housing assistance under this program. 4. MORTGAGE PAYMENTS. Homeowner(s) must provide proof that mortgage payments are current. 5. PROPERTY TAXES. All delinquent property taxes shall be paid on the property prior to receiving assistance under the PHAP. Proof of property tax payment will be required at time of application. PRIORITY ASSISTANCE Assistance will be given to applicants that have met all eligibility requirements and fall into one (1) of the following groups in the following order: PRIORITY ONE (1): Elderly head(s) of household (62 years of age or older) or disabled head(s) of household who have been determined to be of extremely low income (30% of Area Median Income See chart below) PRIORITY TWO (2): Elderly head(s) of household (62 years of age or older) or disabled head(s) of household who have been determined to be of very low income (50% of Area Median Income) PRIORITY THREE (3): Elderly head(s) of household (62 years of age or older) or disabled head(s) of household who have been determined to be of low income (80% of Area Median Income) PAGE 11

15 PRIORITY FOUR (4): Non elderly or non disabled head(s) of household who have been determined to be of extremely low income (30% of Area Median Income) PRIORITY FIVE (5): Non elderly or non disabled head(s) of household who have been determined to be of very low income (50% of Area Median Income) PRIORITY SIX (6): Non elderly or non disabled head(s) of household who have been determined to be of low income (80% of Area Median Income) PRIORITY SEVEN (7): Non elderly or non disabled head(s) of household who have been determined to be above moderate income (100% of Area Median Income) All of the above eligible household applicants will be assisted on a first come, first served basis in relationship to the priorities listed above and in the same time and date of their eligibility determination which is established when complete documentation of items requested in the application review process have been submitted and final eligibility can be determined. FY 2014 Income Limits Summary Plaquemines Parish, Louisiana FY 2014 Income Limit Area Median Income FY 2014 Income Limit Category Low (80%) Income Limits ($) Persons in Family ,950 37,650 42,350 47,050 50,850 54,600 58,350 62,150 Plaquemines Parish, LA $58,800 Very Low (50%) Income Limits ($) 20,600 23,550 26,500 29,400 31,800 34,150 36,500 38,850 Extremely Low (30%) Income Limits ($) 12,400 14,150 15,900 17,650 19,100 20,500 21,900 23,300 PAGE 12

16 DUPLICATION OF BENEFITS Because federal funds will be used to repair storm damaged properties, the rehabilitation award will be subtracted by the amount of other assistance the individual property owner received for the same purpose. This assistance includes but is not limited to homeowner s insurance, flood/hazard insurance, SBA loans, and FEMA awards. Acceptable documentation may include, but is not limited to, receipts as well as sworn statements and certifications that can be verified or substantiated. To prevent duplication of benefits paid by primary providers to compensate the owner for loss or damage to the home, all applicants will be required to execute a blanket eligibility release document that will authorize agencies to provide information regarding prior compensation. These agencies include, but are not limited to, SBA, Homeowner s Insurance Providers, Flood/Hazard Insurance Providers, and the Coordinated Assistance Network (CAN) website. In addition, applicants will be required to execute a separate FEMA Release of Information form. The following documents that are required to complete each application will also be reviewed to determine if compensation was received: Insurance Award or Denial Letter (if applicable); FEMA Claim/Assistance Award/Denial Letter; and, SBA Award or Denial Letter (if applicable) A review of State records will be conducted per applicant to identify the total amount of federal assistance provided under Hurricanes Katrina, Rita, Gustav and/or Ike. Applicants must be in compliance with all covenants required by the receipt of prior federal disaster recovery assistance. GRIEVANCE PROCEDURES If a homeowner(s) or contractor has a complaint concerning the implementation of the PHAP, it must be submitted in writing to the Program Administrator within sixty (60) days from the date of decision. The Program Administrator will respond in writing within ten (10) calendar days from the receipt of the written complaint. The response will include a copy of the Program Administrator s decision, a statement of the facts, and the legal basis upon which the decision was made. Any applicant who disagrees with the determination of their eligibility for assistance in the PHAP may appeal the decision to the Office of the Parish President. PAGE 13

17 CONFLICTS OF INTEREST/ETHICS POLICY When there are questions or disagreements concerning the use of program housing funds by Parish officials or their immediate families, a dispute will be moderated by the State s Office of Community Development/Disaster Recovery Unit and/or the State Ethics Commission. GENERAL OPERATING PROCEDURES 1. GRANT APPLICATION. The applicant must complete and submit an application intake form that includes but is not limited to the following: Copy of FEMA/Insurance/SBA Award or Denial Letter; Copy of receipts for storm related (Hurricane Isaac) home repairs (if applicable); Copy of Deed or Mortgage, Homestead Exemption at time of Hurricane Isaac; Proof of income in form of copy of most recent Federal Income Tax Returns (including all schedules and attachments for all persons in the household ages 18 and over), copies of check stubs for the last three consecutive months, and/or copies of supplemental income documents (Social Security/SSI, retirement, disability, unemployment benefits, Aid to Families with Dependent Children); Copy of most recent property tax payment; Original signed FEMA Release of Information form; Copies of other identification and support documentation, as requested The information collected will be kept confidential and no documentation will be provided to any person or agency without explicit written permission from the applicant. 2. APPLICANT SELECTION AND RANKING. All applications will be reviewed and ranked based on the established priorities set forth in preceding section of this document, Priority Assistance. The ranking and selection process utilized in determining eligibility will be placed in each individual applicant s file. 3. INSPECTION. In order to determine the extent of the rehabilitation required, an initial inspection of the property will be performed. In addition, all structures determined eligible for rehabilitation built prior to 1978 will be tested for lead based paint. Based on the inspection, if a property does not qualify for assistance under this program, the applicant will be notified in writing with a copy placed in the individual applicant s file. 4. ENVIRONMENTAL REVIEW. The Environmental Review process involves an examination of various potential environmental consequences as a result of housing rehabilitation. Each property requesting assistance will be required to undergo a corresponding level of federally mandated Environmental Review. If a site specific analysis indicates that no mitigation measures are required, federal funds may be spent. However, if mitigation PAGE 14

18 measures are required, they must be undertaken before federal funds can be spent. No activity may be undertaken on any applicant property until an Environmental Review clearance has been issued. 5. WORK WRITE UP AND COST ESTIMATE. Once initial eligibility of the applicant has been determined by the PHAP Program Administrator, an itemized work write up and cost estimate for all rehabilitation, labor and materials necessary to meet the goals of the program will be completed by the Housing Specialist/Inspector. For homes under the Major Rehabilitation component, the work write up will include all items needed to assure compliance with the Parish Building Codes and federal Green Building Standards for replacement and construction of residential housing. Each item of work shall be identified in the work write up as being either necessary to meet the Building Code, or for other purposes that may be eligible. If the total estimated cost exceeds the maximum level of assistance, items not necessary for code compliance will be modified or eliminated to reduce the cost estimate. However, items of work necessary to meet the Building Code shall not be eliminated. Should the work write up cost estimate exceed the grant maximum contained herein and a reduction of the scope of work would eliminate items necessary for code compliance, PHAP personnel will require proof of additional funds from the applicant in order to proceed with the application for assistance. Applicants who cannot identify a source of additional funds to cover expenses exceeding the limits of the PHAP award amount will not be permitted to proceed through the Program. 6. CONSULTATION WITH APPLICANT. The Housing Specialist/Inspector will consult with applicant on the finalized work write up. As a result of the consultation with the applicant, the final work write up and cost estimate shall be signed and dated by the applicant prior to bidding in order to document their agreement with the work to be done. Applicants whose dwellings are determined to be unsuitable for rehabilitation will be counseled by the PHAP personnel regarding findings and options. Every effort will be made to help those selected for assistance; however, it is recognized herein that the financial limitations of the program and/or applicant (where applicable) will preclude some applicants from receiving assistance under the Program. 7. BID AWARD AND CONTRACTOR SELECTION. Contracting will be performed on a competitive basis. The Parish will establish a procedure to pre qualify contractors who wish to participate and intend to place bids for the PHAP. In order to participate in the program, all contractors must be appropriately licensed/bonded/insured, as well as meet the Parish s minimum requirements applicable to contract work as defined by Plaquemines Parish Government. The Housing Specialist/Inspector will review all bids for completeness to determine if they are reasonable and responsible. In house estimates will be used to determine reasonableness of bids. Bids that have a 10% or greater differential from the in house PAGE 15

19 estimate shall be considered unreasonable. Bids considered unreasonable will be subject to rejection and considered non responsive. Bids not completed as required will also be subject to rejection and considered non responsive. All bids shall be certified for sixty (60) days. Any contractor who fails to honor any bid prior to expiration of the certification may be temporarily denied the right to participate in the PHAP for up to six (6) months on the first occurrence and up to one (1) year on the second. The Program Administrator reserves the right to limit the number of outstanding awards allowed when deemed necessary to meet the goals and objectives of the PHAP. 8. FINAL APPROVAL. Prior to start of the bidding process, the applicant file that includes the applicant intake form, required documentation, inspections and final work write up will be reviewed for approval and signed by the Program Administrator. Upon completion of the bidding process the bid documents will be reviewed by the Housing Specialist/Inspector for recommendation of bid award to the Program Administrator. 9. CONTRACT AND LIEN AGREEMENTS. Participants in the PHAP will be asked to attend a closing to execute the Plaquemines Homeowner s Assistance Program Note and Mortgage, to include all covenants required by the program. At the closing, the contract between the homeowner(s) and contractor will be executed by the applicant, along with a Notice to Proceed issued to the contractor(s) to commence work. 10. CONSTRUCTION. For all rehabilitation work, with the exception of emergency work, the general contractor, unless prohibited by inclement weather, must begin work within seven (7) days after a written Notice to Proceed is issued. If the contractor does not commence work within seven (7) days, the homeowner(s) and/or the PHAP Program Administrator may cancel the contract and award the work to the next lowest responsive bidder or request rebidding of the job. Prior to any work commencing, the contractor shall secure all permits fees and licenses necessary for the execution of work under contract. The contractor shall provide a copy of the building permit to the Housing Specialist/Inspector and display the original in plain view at the worksite. Variations from any work write up must be documented by a change order authorized by the homeowner and Housing Specialist/Inspector. Although in some cases change orders are inevitable, they will be the exception for the Plaquemines Homeowners Assistance Program. The contractor is responsible for submitting written change order proposals to the Housing Specialist/Inspector for approval prior to beginning any additional work. Any work not listed in the final work write up performed without written authorization from the homeowner(s), Housing Specialist/Inspector, and Program Administrator will be the PAGE 16

20 financial responsibility of the contractor. Adequate documentation to justify change orders along with a detailed cost for each item must be submitted with all change order requests. Any change orders initiated by the homeowner(s) and carried out by the contractor will be the financial responsibility of the homeowner(s) as well as any liability arising from the change order. The Housing Specialist must certify that all work is completed according to work write up and a Parish Building Inspector must certify that all work meets applicable codes before disbursement of final payment. The contractor shall provide a warranty for all work, materials and labor for a period of one (1) year after acceptance of work by the homeowner(s). 11. TIME FRAME FOR COMPLETION. All work shall be satisfactorily completed with a specified time period based on the bid amount and level of repair: Minor Rehabilitation: Ninety (90) Days Major Rehabilitation (Without Elevation): One Hundred Twenty (120) Days Major Rehabilitation (With Elevation): Two Hundred Forty (240) Days Elevation: One Hundred Twenty (120) Days Rehabilitation (To Begin Upon Completion of Elevation): One Hundred Twenty (120) Days Reconstruction/Replacement: One Hundred Fifty (150) Days If the contractor does not complete the work within the time frame specified in the work contract, a penalty of $ per day may be withheld from the amount to be paid to the contractor for each day that the work is not completed. It is the responsibility of the contractor, in the event of inclement weather or any other reason beyond the control of the contractor that causes a no work day, to contact the Housing Specialist/Inspector on the day of the occurrence. Only no work days reported as required will be considered when determining assessment of penalties. Workday summaries must be provided with each request for progress payment to the Housing Inspector/Parish Administrator. 12. PROGRESS PAYMENTS/COMPLETION OF WORK. Issuance of a progress payments will be dependent upon favorable interim inspection reports indicating that the work required has been completed in conformance with the work write up and rehabilitation specifications. In the event that work completed is not in compliance, the Housing Specialist/Inspector will advise the contractor of appropriate corrective action to be taken. The initial notification shall be verbal and the Housing Specialist/Inspector will document this notification in the case file. This verbal notification will be followed up by a written memo to the contractor if the work is not completed as required by the verbal notification. No payment will be made until the contractor has satisfactorily completed the necessary corrective action. PAGE 17

21 13. SCHEDULE OF PAYMENTS. Contractors will be paid for work satisfactorily completed according to the following schedule: Minor Rehabilitation Component First Payment. Sixty percent (60%) of the total amount of the contract at job completion, final inspection, and issuance of a closeout punch list; Second (Final) Payment. Forty percent (40%) of total amount of the contract upon completion of all punch list items and proof of lien release executed by all necessary parties, as applicable. Major Rehabilitation Component PHAP personnel will provide the homeowner and contractor with a detailed milestone payment schedule for all parties to execute prior to the start of projects requiring major rehabilitation. The milestone payment schedule will set construction tasks and progress payment installments with checks to be made payable to the homeowners and contractors. This will ensure that all work has been performed in accordance with the executed contract. Elevation, Reconstruction/Replacement PHAP personnel will provide the homeowner and contractor with a detailed milestone payment schedule for all parties to execute prior to the start of projects requiring elevation, reconstruction or replacement. The milestone payment schedule will set construction tasks and progress payment installments with checks to be made payable to the homeowners and contractors. This will ensure that all work has been performed in accordance with the executed contract. 14. FOLLOW UP WARRANTY ISSUES. Homeowners are instructed to contact contractors directly concerning warranty items. If the homeowner is unsuccessful in contacting the contractor, he/she may contact the Program Administrator. The Program Administrator will then coordinate with the contractor to have the complaints resolved. Results of the contractor s actions shall be recorded as a part of the rehabilitation case file, with copies of all warranty complaints placed in the contractor s file. 15. CONTRACTOR DEFAULT. If any contractor fails to honor any of the terms of the contract, causes any unreasonable delay, allows insurance to cancel, or otherwise does not perform as required, he or she shall be placed in default of the contract and shall also be automatically placed in a suspended status. Under such circumstances, a new contractor shall be engaged to complete the remaining work from the existing contract. The contractor and all affected parties shall be notified in writing of this default and the corrective action plan to be taken. Any contractor may be suspended from program participation for a limited period of time pending an investigation to determine if there is a cause to debar, or pursuant to a PAGE 18

22 complaint filed by the homeowner(s). During the period of suspension, the suspended contractor will not be allowed to submit a bid or be awarded any new contracts. Contractors may be recommended for debarment for reasons including, but not limited to, the following: Willful violation of the terms and conditions of program participation; Willful violation of contract performance relative to specifications and completion dates; An established record of failure to perform or of unsatisfactory performance; or, Any other reason of such serious compelling nature which affects the contractor s responsibility and which indicated a lack of business integrity or honesty. 16. PROPERTY MAINTENANCE. By applying to and accepting PHAP funds, if awarded, each applicant is required to maintain their property in compliance with all applicable Parish building and property codes. Maintenance of the applicant(s) property will be examined by the Parish throughout the term of the financial assistance. Plaquemines Parish reserves the right to take any appropriate action necessary to ensure that the rehabilitated/reconstructed/elevated property is maintained; action which may include requiring an early payback of financial assistance. 17. DATA MANAGEMENT. The Program Administrator will record and maintain all file records. All eligibility information, inspection notes and contractor complaints will be recorded. 18. OPTIONAL VOLUNTARY DISPLACEMENT POLICY. If it is determined by the Program Administrator that it is in the best interest of the homeowner to be temporarily relocated while rehabilitation is being performed, the following policies regarding temporary displacement will apply: Rehabilitation program activities will be planned and carried out in a manner that minimizes hardships to occupants of houses being rehabilitated under the PHAP, in accordance with the regulations of the CDBG Disaster Recovery Program. a. When a homeowner requests and receives a grant for the purpose of rehabilitating his/her home, he/she becomes eligible for temporary displacement assistance providing the nature of the rehabilitation is such that the occupants could not continue to live in the dwelling during rehabilitation as determined by the contractor and approved by the Program Administrator. PAGE 19

23 b. Arrangements will be made to provide temporary displacement assistance in accordance with the needs of those being temporarily displaced, including social services, counseling, guidance, assistance, and referrals. c. Costs associated with a temporary move may be included in the rehabilitation grant if no personal resources are available to the occupant of the dwelling. These costs will not exceed $2,500 per applicant. Hardship situations will be considered on an individual basis. Costs which may be charged to the rehabilitation contract include: Actual reasonable moving costs to the temporary relocation. Actual reasonable cost of renting the temporary unit. (Normally not to exceed ninety (90) days). Actual reasonable cost for storage of furniture that cannot be housed in the temporary unit in the event that the family can find shelter for themselves but not their belongings. Actual reasonable cost of moving from the temporary location back to the rehabilitated dwelling. Eligible recipients will not be relocated until the contractor is prepared to begin rehabilitation work and shall be returned to their homes immediately upon final inspection of their homes. All reasonable costs must be documented by dated invoices from the parties receiving the remuneration. Procedures and forms shall be in accordance with the HUD Relocation Handbook 1378, as revised. d. Payment. The displacement payment must be approved by Plaquemines Parish. e. Basis for Displacement Payment i. Homeowner Occupants. The payment for displacement is to be based on per square foot replacement rate of $2.00/SF, to a maximum of $3.00/SF, with minimum square foot allowances defined as follows: ROOM SIZES Location No Separate Least 1 & 2 Bedrooms 3 Bedrooms Bedroom Dimension Living Room N/A 140 SF 150 SF 10' 10" Dining Room N/A 80 SF 100 SF 7' 8" Kitchen N/A 50 SF 60 SF 5' 4" Kitchenette SF 40 SF 3' 6" Bedroom/Double N/A 110 SF 110 SF 8' 8" PAGE 20