[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.
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
|