City of Neosho, MO
Newton County
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Table of Contents
Table of Contents
[Ord. No. 94-2 §1, 2-15-1994]
The purpose of this rehabilitation program is to correct code violations, overcrowding, unsanitary conditions, and/or to otherwise provide a decent, safe, and sanitary housing and living environment (within the requirements of the CDBG Housing Quality Standards [HQS], for persons of low-to-moderate income levels living in the City of Neosho, Missouri.
[Ord. No. 94-2 §2, 2-15-1994]
A. 
This program is designed to preserve the housing stock within the confines of a pre-selected target area. That area is generally described as the area bound on the north by Smith Street, on the east by College Street, on the south by Grand Street, and on the west by High Street.
B. 
Only those households which qualify as low-to-moderate income families (LMI) as defined in Section 550.030 of this Chapter will receive assistance.
C. 
This program targets the resident household, rather than the house; therefore, both homeowners and renters will be qualified for assistance. Landlords who are interested (but whose personal income make them overqualified) will be required to contribute twenty-five percent (25%) of the construction costs, along with other restrictions as defined in Section 550.030.
D. 
CDBG Housing Quality Standards (HQS); and/or City building, electrical, plumbing, mechanical, property maintenance, and general nuisance codes now in effect, or adopted by the City Council of the City during the life of this program, whichever are stricter, will be enforced in the specifications of this project.
E. 
All rehabilitation work will be performed by qualified, licensed, and insured contractors. The City reserves the right through its City Manager and Program Administrator to disbar any contractor due to poor performance, unreasonable time to completion, failure to provide lien releases, affidavits, or documents, or any other breach of contract requirements.
F. 
Competitive bids will be let on all projects and the lowest responsible selected. To prevent discouraging contractors from participating in the program, the homeowners will not be allowed to contract with a different contractor and pay the difference. All eligible, registered woman- and minority-business enterprises (WBE/MBE) will be contacted at the beginning of the construction phase through direct mail and public advertisement for the purposes of bidding. Contracts and their related documents must be signed by the homeowner, tenant (where applicable), contractor, and the City.
[Ord. No. 94-2 §3, 2-15-1994]
A. 
The City may not use CDBG funds to rehabilitate, build or acquire a house owned or occupied in whole or in part by any publicly elected official, or the immediate family or any person employed by the City in a decision-making capacity. Also, City Officials, immediate family members, or administrative agencies or officials may not have any financial interest in the contracting firms selected. If a City Official should own a material supply company at which contractors might buy material, this conflict of interest provision does not occur, provided a disclaimer appears in the Construction Work Order (CWO) stating that materials can be purchased from suppliers other than local place of business.
B. 
The amount of any approved grant will be the total cost of the rehabilitation, not to exceed the sum of thirteen thousand dollars ($13,000.00), unless written permission to exceed that amount is given from CDBG DED. Recipients do not repay grant amounts, unless a violation of this Section occurs.
C. 
Only properties within the target area will be eligible for grant assistance. If funds remain available after all eligible target area applications have been executed, applicants from neighborhoods outside the target area may apply and be prioritized. The limitations of "outside the target area" are that: they must be functionally related, have similar characteristics, and are adjacent to the designated target area (contiguous border).
D. 
In order to encourage landlord investment in LMI housing, to encourage LMI home buyers, and to facilitate the relocation of LMI families' homes away from the new floodway project in the target area, the property to be rehabilitated need not have been owned by the applicant prior to application. However, the following restrictions will apply before contracting:
1. 
The owner must have a recorded deed of ownership (Warranty Deed). A Deed of Trust does not prove ownership. A Contract for Deed)/Land Sales Contract/Lease with Option to Buy properly executed shall not constitute ownership, but shall be considered an incomplete sale, and therefor will be processed as a rental (assistance and advice will be provide by the program administrator should the owner desire to complete the title transfer.) Any person who rents to another member of his/her immediate family will not be considered a landlord, and the occupant of the house may be considered as an owner-occupant for the purposes of this program. However, the owner of record will sign all contracts.
2. 
The property owner must sign an agreement with the City to repay the entire grant amount if the property is sold within three (3) years of the date of the contract for housing rehabilitation. Should a death or placement into a long-term healthcare facility occur to the owner, and the home is placed into the care or ownership of an immediate family member, the provisions of the above Subparagraph (1) would take effect and the transfer of title would not be considered a sale (however, the party inheriting the property would be bound by the same three (3) year restriction noted above. Should the new owner choose to rent rather than sell the property to avoid the payback penalty, he/she must rent to an LMI household for at least the first (1st) year, and the provision in Subsection (E) would be in effect.
E. 
Voluntary Program. All interested persons must make an application before any action can be taken. The application will include an itemized worksheet in which the applicant must reveal all sources of income for the twelve (12) months prior to the date of the contract in order to qualify as a LMI household. "Dramatic change of income" (divorce, job joss, retirement) may be projected into the future, but must be verified at least once every three (3) months for a one (1) year period. The applicant must verify all income through source documentation (i.e. voluntary submittal of last year's income tax return; or one (1) year of bank and savings statements, social security statement, W-2's, interest accrued on accounts, welfare, etc. (see application for detail). Application processing shall be the responsibility of the Program Administrator.
FY-93 Income Limits for Applicants (subject to annual adjustment):
Number of Persons/Households
Total Adjusted Annual Household Income
1
$16,800.00
2
$19,200.00
3
$21,600.00
4
$24,000.00
5
$25,900.00
6
$27,850.00
7
$29,750.00
8
$31,700.00
F. 
Prerequisites for Priority Ranking.
1. 
The statewide objective of the CDBG Program is to eliminate circumstances which affect the Health and Safety of the low-to-moderate income (LMI) residents in the designated target area. In order to reach those most susceptible, the following rating system will be used by the Program Administrator to prioritize applicants for housing rehabilitation funding by the City (this does not eliminate those who do not receive these points, but lowers them in priority rank until fund reserves are depleted).
a. 
Elderly (over 65): 10 points per person.
b. 
Handicapped: 10 points per person.
c. 
Disabled or permanent infirmity: 5 points per person.
d. 
Female Head-of-Household (FHH): 10 points.
e. 
Emergency: 10 points.
f. 
Very low income: 10 points.
g. 
Less than one (1) Bedroom per two (2) occupants of the same sex, or less than one (1) bedroom for each unmarried (non-cohabitating) person of the opposite sex: 5 points per household.
h. 
Any of the following households which have no dependents.
Married or cohabitating couple, non-related male or female roommates, or single male or female: 5 points per person below retirement age (65).
2. 
See Section 550.050 for more information on items (a) through (h) of Subparagraph (1) above.
3. 
To qualify for any of the above points, an applicant must be able to verify by document. A driver's license or birth certificate will verify age. A third (3rd) party source such as another Federal or State assistance agency (Social Security, Family Services, etc.), doctor, or psychiatrist will prove handicap, disability or infirmity. The Program Administrator and Inspector will verify items d, e, f, g and h through the applicant's income verification and site inspection.
[Ord. No. 94-2 §4, 2-15-1994]
A. 
A complete inspection will be made by the Program Housing Inspector. A work write-up will be prepared, as well as a cost estimate when there will be less than three (3) bids from private contractors. All decisions concerning repairs to the structure will be made by the Program Administrator/Housing Inspector in accordance with the CDBG HQS. No CDBG funds will be spent if the minimum Health and Safety Standards can not be met. Final approval will be made by the Program Administrator, with right to appeal before the City Manager.
B. 
The Program Housing Inspector will review all line items on the Construction Work Order write-up (CWO), (as well as other pertinent information), with the Owner and interested Contractors at a Prebid Conference.
C. 
The Program Housing Inspector will conduct the Public Bid-Letting at City Hall in the presence of an official representative of the City.
D. 
All contract and related documents will be prepared and submitted for approval and signatures by the Program Administrator. The Program Administrator will approve all Contractor's Applications for Payment (CAP) after verification by the Housing Inspector. The City Manager will review and approve or reject all prioritizing information, bidding and contract documents, rehabilitation activities, and final inspection certificate prior to authorizing the final payment (CAP) to the contractor.
E. 
Contract change orders (Field Work Authorization [FWA]), use of contingency funds, timing of "critical time construction" site inspections, submission of the Certificate of Final Inspection, and other construction management services shall be the sole responsibility of the Program Housing Inspector, under the supervision of the Program Administrator, and City Manager.
F. 
The Contractor will be required to submit an affidavit revealing all subcontractors, suppliers, and labor used on each job; and all lien releases, gas pressure tests, lead-based paint encapsulation or abatement certification, heat system certification, and insulation certificate as required prior to receiving final payment.
[Ord. No. 94-2 §4, 2-15-1994]
The following terms when used in this Chapter, shall have the meanings set out herein:
BEDROOM
A bedroom shall be a heated and electrically lit room which affords privacy to the individual, is used primarily for sleeping and storage of clothing year round, has a minimum of seventy (70) square feet, and its least dimension is six (6) feet.
DEPENDANT
A member of the family household (excluding foster children) other than the family head or spouse, who is under eighteen (18) years of age or is a disabled or handicapped person, or is a full-time student.
DISABLED
A person who is under a disability as defined in Section 223 of the Social Security Act (42 U.S.C. 423), or who has a development disability as defined in Section 102(7) of the Developmental Disabilities Assistance and Bill of Rights Act (42 U.S.C. 6001(7).
EMERGENCY
A condition, situation, pressing need, or re-occurring event within the physical structure or atmosphere of the confines of a home which directly affects the health and safety of the occupants, demanding immediate action.
FEMALE HEAD OF HOUSEHOLD
A female who has a least one (1) dependant and pays more than fifty percent (50%) of the costs to maintain a home.
HANDICAPPED
A person having a physical or mental impairment that:
1. 
Is expected to be a long, continued and indefinite duration;
2. 
Substantially impedes his/her ability to live independently; and
3. 
Is of such a nature that such ability could be improved by more suitable housing conditions.
IMMEDIATE FAMILY MEMBER
An immediate family member includes: fathers, mothers, sons, daughters, brothers, and sisters.
INFIRMITY
A situation where a person is medically determined to be of poor or deteriorated vitality; weak, feeble, or not physically solid or stable; and of a condition which is expected to remain for a long, continued and indefinite duration causing the need for care, lodging and treatment; and is of such a nature that conditions could be improved by appropriate housing improvements.
LOW-TO-MODERATE INCOME (LMI)
Adjusted annual income for the current fiscal year after allowable deductions. Definition of income is determined by Missouri's Department of Economic Development (DED) Exhibit HO-11 (24 CFR Part 813). Maximum adjusted allowable income is determined by the current Low and Very Low Income Charts for the County received from DED).
VERY LOW INCOME
Limits for applicants (subject to annual adjustment by DED):
Number of Persons/Household
FY-93 Adjusted Annual Income
1
$10,500.00
2
$12,000.00
3
$13,500.00
4
$15,000.00
5
$16,200.00
6
$17,400.00
7
$18,600.00
8
$19,800.00