1991-0618_ORANGE ,COUNTY OF_ContractBOARD OF SUPERVISOR
ORANGE COUNTY, CALIFORNIA
MINUTES June 18, 1991
HOUSING AND COMMUNITY DEVELOPMENT CONTRACT NO. C40189 WITH THE CITY OF
SAN JUAN CAPISTRANO FOR REHABILITATION OF HOUSING AND MOBILE HOMES
CITYWIDE, K12.3� YEAR XI: Environmental Management Agency requests
approval to reprogram a contract, developed under Housing and Community
Development Block Grant (CDBG) Program, originally allocated for Los
Rios Street Improvements which could not be feasibly used, for rehabili-
tation of housing and mobile homes citywide.
MOTION: On motion by Supervisor Riley, seconded by Supervisor Vasquez,
the Board authorized execution of Housing and Community Development
Contract No. C40189 with the City of San Juan Capistrano in the amount
of $60,000. MOTION UNANIMOUSLY CARRIED.
RECEIVE
JILL 0 3 1991
EMA
1 ITLE
2
3 9.
4
5
6
7
8
9
10
11
12 6ated
13
14
15
16
1.
0 Contract No. C40189
COUNTY OF ORANGE
ENVIRONMENTAL MANAGEMENT AGENCY
HOUSING AND COMMUNITY DEVELOPMENT CONTRACT
OF PROJECT: San Juan Capistrano: Rehabilitation of Housing and Mobile Homes
Citywide (K12.3) YEAR XI 7�_
MEMORANDUM OF CONTRACT entered into this TH day of J VAj ,
BY AND BETWEEN
and
CITY OF SAN JUAN CAPISTRANO, a municipal
corporation, hereinafter referred to as CITY,
COUNTY OF ORANGE, a political subdivision of the
State of California and recognized Urban County
under the Federal Housing and Community
Development Act of 1974 (Public Law 93-383), as
amended, hereinafter referred to as COUNTY.
WHEREAS, COUNTY and CITY previously entered into a Cooperation Agreement
October 9, 1984, in which both parties agreed to cooperate in the undertaking,
assist in the undertaking, of community development and housing assistance
ivities, and
WHEREAS, the CITY has submitted to the COUNTY an application for funding
a project hereinafter described, and
17 WHEREAS, the COUNTY has entered into a separate agreement dated July 30, 1985
18 qith the U.S. Department of Housing and Urban Development (hereinafter referred to as
19 UD) to fund said project under the Housing and Community Development Act of 1974
20 Public Law 93-383), as amended.
21 WHEREAS, the CITY had previously received a Sixty Thousand Dollar and no/100
22 $60,000) allocation for Los Rios Street Improvements which could not be feasibly used;
23 ind
24 WHEREAS, the CITY has requested the COUNTY to reprogram the funds originally
25 ntended for the Los Rios Street Improvements for Sixty Thousand Dollars and no/100
26 ($60,000) to Rehabilitation of Housing and Mobile Homes Citywide.
27 NOW, THEREFORE, IT IS AGREED by and between the parties that the following
28 rovisions as well as all applicable Federal, State and County laws and regulations
-1-
1'
2
3
4
5
61
•
0 Contract No. C40189 I
including the attached SPECIAL PROVISIONS, identified as EXHIBIT "A", are part of this
Contract.
1. For the PURPOSES OF THIS CONTRACT the following definitions shall apply:
a. Project Manager: The party responsible for, but whose responsibility is
not limited to the following: Contracting, monitoring and implementing the project
through completion.
7 b. Director: The Director of the Orange County Environmental Management
8 Agency (hereinafter referred to as EMA) or his designee.
9 C. Reimbursable Basis: The CITY will provide the funds for the project and
10 submit proof of payment to the COUNTY, whereby upon approval, the COUNTY will forward
11 Community Development Block Grant (hereinafter referred to as CDBG) funds to repay the
1211CITY.
131 d. Construction Bid Package: A package of bidding documents which includes
14 proposal, bidding instructions, contract documents, detailed estimated costs and plans
15 and specifications for a construction project, all prepared in accordance with
16 applicable Federal regulations.
17 2. It is understood that the CITY will act as PROJECT MANAGER for the project
18 described as: Rehabilitation of Housing and Mobile Hanes Citywide (X12.3) YEAR XI).
19IThe CITY will utilize CDBG funds to provide low-interest loans, deferred payment loans,
20lgrants or rebates for improvements of Housing and Mobile Hanes Citywide (see attached
21pap, EXHIBIT "B", which is part of this Contract). All rehabilitation of single family
22 residential and Mobile Hone units will benefit low- and mderate-income persons. A
23 maximum of 208 of funds provided through this Contract as referenced in Section 5.a. may
24be used for Project Development of the Housing Rehabilitation and Mobile Home project
25 specifically for salaries, and benefits of staff assistant or consultant and other
26 eligible activities associated with the Housing and Mobile Home Rehabilitation Project.
i
27
28,///
-2-
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19'
20
21I
22
23
24
25
26
27
28
Contract No. C40189
3. It is agreed by all parties that the project shall be completed and all
funds provided through this Contract shall be expended on eligible project activities
prior to December 31, 1991. Invoices for all approved project costs funded by the Block
Grant under this Contract shall be submitted within 180 days after the above date. The
date for project completion and expenditure of all funds may be extended at the
discretion of the DIRECTOR, on a year -by -year basis up to a maximum period of five (5)
total years, through written notification to the CITY. In the event of such an
extension, the deadline for submittal of invoices shall be 180 days after the new
completion date. After Contract expiration, all unexpended funds remaining from
(this Contract may be allocated by the COUNTY to another eligible project(s) within the
Urban County CDBG Program.
4. CITY agrees:
a. Any proposed amendment to this Contract shall be submitted to and
approved by the COUNTY, prior to commencement by CITY of any activity covered by said
amendment.
b. To submit any and all third -party contracts proposed for funding through
this Contract to DIRECTOR for review and approval prior to award of such contracts by
CITY.
C. To comply with CDBG Program Regulations, as may be periodically revised
by HUD, office of Management and Budget, or other Federal agencies, and including laws
and policies applicable to the CDBG Program.
d. That the project shall be implemented and appropriately maintained for
Community Development purposes as defined by applicable HUD provisions to ensure maximum
feasible benefit and utilization of the project by low- and moderate -income persons.
e. To maintain accounting records, official files, and other evidence
pertaining to costs incurred as required by all applicable HUD regulations, and all of
these shall be accessible for the purposes of monitoring, audit, reporting or review by
duly authorized representatives of COUNTY or HUD. These records shall be kept available
-3-
. Contract No. C40189 I
1 at CITY's office during the project's contract period and thereafter for three (3) years
2 Cram the date of final CITY receipt of HUD CDBG funds through this Contract.
3 f. That DIRECTOR shall periodically evaluate the CITY's progress in
4 omplying with the terms of this Contract. CITY shall cooperate fully during such
5 nonitoring. DIRECTOR shall report the findings of each monitoring to the CITY and
6 range County Board of Supervisors. If it is determined by the Board of Supervisors
7 that CITY performance or progress on performance is unsatisfactory, the Board of
8 Supervisors may withhold further funding on the project pending resolution of the
9 ansatisfactory condition(s), or may terminate this Contract. In addition, the Board of
10 Supervisors may require the CITY to reimburse COUNTY any funds that it determines to be
11 improperly expended or not expended on the project in a timely manner based on
12 ipplicable CDBG Program Regulations.
13 g. That if it is determined by HUD that funds were not expended in
14 ompliance with the applicable Federal laws and regulations, CITY will refund to COUNTY
15 7ithin ninety 90 days thereafter such sums as were determined by HUD to have been
16 improperly expended.
17 h. When the project is completed, all unexpended funds remaining will be
18 ,eturned to the COUNTY as soon as practicable, but in any event, within 180 days
19 hereafter. DIRECTOR may then reallocate returned funds to another Urban County
20 roject(s) previously approved by the Board of Supervisors. Returned funds as such, may
21 a allocated by the DIRECTOR up to the lesser amount of ten percent (108) of total
22 ontract funds provided herein Section 5.a. or Ten Thousand Dollars ($10,000.00).
23 i. Should the COUNTY receive returned funds from other Urban County
24 rojects, funding for this Contract, upon proof of anticipated cost overruns, may be
25 Lncreased at the discretion and upon written authorization of the DIRECTOR up to the
26 Lesser amount of ten percent (108) of total Contract funds provided herein Section 5.a.
27 r Ten Thousand Dollars ($10,000.00).
28 j. To assume responsibility for compliance with the California
-4-
1
2
3
4
5
gl
7
8
9
10
11
12
13
14
15
16
17
18
19
20i
21
22
23
24
25
26
27
28
0 0
Contract No. C401891
Environmental Quality Act (CEQA) and to provide COUNTY with necessary information to
comply with the National Environmental Policy Act (NEPA) prior to commencing project
implementation. This may include, when applicable, CITY preparation of NEPA
documentation in coordination with EMA staff.
k. To be responsible for design and inspection, including funding the costs
related to those activities, unless funding for design and inspection activities is
provided for in Section 5.a. of this Contract.
1. To submit the Construction Bid Package for this project to DIRECTOR for
review prior to advertising for bids on the construction contract or prior to award of
such a contract if an alternative method of award is used. CITY shall not advertise for
bids until DIRECTOR has approved Construction Bid Package. CITY shall construct project
in accordance with the Construction Bid Package which DIRECTOR approved unless prior
written approval is received from DIRECTOR for modification therefrom.
5. Project Funding:
a. Project will be financed under this Contract as follows:
Project Development $12,000.00 (Twelve Thousand Dollars and
no/100).
Loans and Grants and Rebates $48,000.00 (Forty-eight Thousand Dollars
and no/100) .
Total CDBG Funds
no/100) .
$60,000.00 (Sixty Thousand Dollars and
b. COUNTY shall not be responsible for any costs which exceed the approved
CDBG funding amount as referenced in Section 5.a. unless otherwise provided in advance
as referenced in Section 4.i.
c. Payment by the COUNTY to the CITY shall be on a reimbursable basis
unless CITY has been authorized and issued cash advances at the discretion of the
RECTOR under this Contract.
d. Cash advances requested by the CITY under this Contract may be made by
-5-
1'
2
3
4'
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
•
. Contract No. C40189I
the DIRECTOR to the CITY if the following conditions are met:
(1) The CITY has demonstrated to DIRECTOR through certification in a
form prescribed by DIRECTOR and subsequently through performance, its willingness and
capacity to establish CITY financial procedures that will minimize the time elapsing
between the receipt of funds and proper disbursement of such funds.
(2) The CITY certifies to DIRECTOR, that the CITY's financial
management system meets the standards for fund control and accountability prescribed in
Office of Management and Budget Circular No. A-102, as periodically amended.
(3) The CITY complies with the cash advance procedures required by
financial procedures of EMA. These procedures require that upon written receipt of
funds from the COUNTY, the CITY shall disburse payment(s) to vendor(s) within five (5)
working days and submit evidence of such disbursement(s) (i.e., warrant copies, etc.) to
the DIRECTOR.
If the CITY is subsequently found, by DIRECTOR, to be in noncompliance
with Section 5.d.(1) through Section 5.d.(3), CITY shall be paid on a
reimbursable basis.
e. Reimbursable basis payments, as referred to in Section 5.c, and/or cash
advances described in Section 5.d. shall be made in accordance with EMA financial
procedures. In the event of conflict between EMA financial procedures and any
applicable statutes, rules or regulations of HUD, including Office of Management and
Budget Circular No. A-102, the latter shall prevail.
6. CITY must inform the DIRECTOR (through periodic reports requested by BMA
staff) of any income generated by the expenditure of CDBG funds received by the CITY;
and that per applicable Federal requirements, certain program income must be paid to the
COUNTY (e.g., interest earned on CDBG cash advances); and/or, the CITY may retain such
program income only if that program income is used exclusively for eligible activities,
at the discretion of the DIRECTOR, and in accordance with all CDBG requirements as may
then apply.
-6-
211
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Contract No. C401891
a. CITY shall keep and maintain appropriate records on the use of any such
program income as may be required by EMA staff since the COUNTY has the responsibility
of monitoring and reporting program income to BUD.
b. In the event of CITY close-out or change in status of the participating
CITY in the Urban County CDBG Program, any program income at that time or received
subsequent to the close-out or change in status shall be paid by CITY to the COUNTY
within 90 days thereafter.
7. Any proposed modification or change in use of real property acquired or
improved in whole or in part by CDBG funds from that planned at the time of the
acquisition or improvement, including disposition, must be reported by CITY to the
COUNTY and receive COUNTY concurrence thereto in advance of implementing the
modification or change in use.
a. Should the disposition, sale or transfer of such real property acquired
or improved in whole or in part using CDBG funds result in a use which does not qualify
under CDBG Regulations, the COUNTY shall be reimbursed by CITY in an amount equal to the
current fair market value (less any portion thereof attributable to expenditures of non-
CDBG funds).
b. Any program income generated from the disposition, transfer or sale of
such property prior to or subsequent to the CITY close-out or change in status of the
CITY in the Urban County CDBG Program may be either used by CITY for other specific
eligible activities in the CITY or paid to the COUNTY for other eligible Urban County
activities, as determined in advance of the expenditure at the discretion of the COUNTY.
8. CITY shall obtain an annual audit performed in accordance with OMB Circular
and forward a copy to DIRECTOR. DIRECTOR shall have the right to ensure that
corrective actions are made by the CITY for any audit findings pertinent to
26 CITY handling of funding attributable to the CDBG Program per Federal requirements.
27 9. Neither COUNTY nor any officer nor employee thereof shall be responsible for
2811any damage or liability occurring by reason of any action or omission of CITY or its
-7-
0
Contract No. C40189'
111 agents, associates, contractors, subcontractors, materialmen, laborers, or any other
211 persons, firms, or corporations furnishing or supplying work service, materials, or
311supplies in connection with CITY's performance of this Contract and from any and all
4 claims and losses accruing or resulting to any persons, firm or corporation for personal
5 injuries or property damage resulting from or as a consequence of, CITY's performance of
6 this Contract under or in connection with any work, authority or jurisdiction delegated
7 to CITY under this Contract. It is also understood and agreed that, pursuant to
8 California Government Code Section 895.4, CITY shall fully indemnify, defend and hold
9 COUNTY harmless from any liability imposed for injury (as defined by California
10 Government Code Section 810.8) occurring by reason of any action or omission of CITY
11 under or in connection with any work, authority or jurisdiction delegated to CITY under
12 this Contract. CITY shall act in an independent capacity and not as officers, employees
13 or agents of COUNTY.
14 10. Neither CITY nor any officer nor employee thereof shall be responsible for
15 any damage or liability occurring by reason of any action or omission of COUNTY, its
16 agents, associates, contractors, subcontractors, materialmen, laborers, or any other
17 persons, firms, or corporations furnishing or supplying work, service, materials, or
18 supplies in connection with COUNTY's performance of this Contract and from any and all
19 claims and losses accruing or resulting to any persons, firm or corporation for personal
20 injuries or property damage resulting from or as a consequence of COUNTY's performance
21 of this Contract under or in connection with any work, authority or jurisdiction
22 delegated to COUNTY under this Contract. It is also understood and agreed that,
23 pursuant to California Government Code Section 895.4, COUNTY shall fully indemnify,
24 defend and hold CITY harmless from any liability imposed for injury (as defined by
25 California Government Code Section 810.8) occurring by reason of any action or omission
26 of COUNTY under or in connection with any work, authority or jurisdiction delegated to
27 COUNTY under this Contract. COUNTY shall act in an independent capacity and not as
28 officers, employees or agents of CITY.
Q11
1
2
3
4
5
6
7
8
9
10
11,
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
•
Contract No. C401891
11. Where contract funds are withheld, and at the request and expense of CITY,
COUNTY will accept securities equivalent to the amount withheld. Such substituted
security, meeting the requirements of Government Code Section 4590, shall be deposited
with COUNTY, or with a State or Federally chartered bank as escrow agent. If security
is deposited with an escrow agent, it shall be covered by an escrow agreement.
12. In the event of CITY's failure to comply with the provisions of this
Contract, COUNTY may withhold or require CITY reimbursement of funds, and/or terminate
this Contract, and/or allocate funds previously assigned to this Contract to another
eligible project(s) within the Urban County.
MM
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20j
21
221
23
24
25
26
27
28
Is
Contract No. C401891
IN WITNESS WHEREOF, CITY has caused this Contract to be executed by its Mayor
and attested by its Clerk; COUNTY has caused this Contract to be executed by the
Chairman of the Board of Supervisors and certified by Clerk of the Board, all having
been duly authorized by the City Council of CITY and the Orange County Board of
Supervisors.
Dated: April 2, 1991
ATTEST:
T
Dated: JU1118 1991
APPROVED AS TO FORM:
ADRIAN RUYPER, COUNTY COUNSEL
ORANGE COUNTY, CALIFORNIA
i
By
CITY 4�"
OF SAN JUAN CAPISTRANO
By_ .
Kenneth E. Friess Mayo
COUNTY OF ORANGE, a political subdivision of
the State of California i
Chairman of the Board ofSfiv�ry
COUNTY '1
SIGNED AND CERTIFIED THAT A COPY OF
THIS DOCUMENT HAS BEEN DELIVERED TO
THE CHAIRMAN OF THE BOARD
LINDA D. R172H
Clerk of the Board of Supervisors
of Orange County, California
//////////////////////////////////////////////////////////////////////////////////////
APPROVED TO FINANCIAL PROVISIONS: H/CD
By C.R.
EMA-Fi-narjAK Ser ices
Acctg. t�N�
APPROVED AS TO ACCOUNTING PROVISIONS:
By 't
E �✓
`accounting Services
JMH:bjgWP8-2(C40189)
2/15/91
-10-
Env, P '
S.C.
Exit •A" to COUNTY/CITY Contract
SPECIAL PROVISIONS
1 A. Section 3 - Compliance with the Provision of Training Employment and
2 Business Opportunity
3 The CITY shall cause or require to be inserted in full in all contracts and
4 subcontracts for work financed in whole or part with federal financial assistance
5 provided under this Contract, the Section 3 clause set forth in 24 CFR 135.20(b). The
6 CITY will provide such copies of 24 CFR Part 135, as may be necessary for the
7 information of parties to contracts required to contain the said Section 3 clause.
8 Section 3 requires that to the greatest extent feasible, opportunities for
9 training and employment be made available to lower income residents within the unit of
10 local government or metropolitan area (or non -metropolitan county), in which the project
11
12
13
is located. In addition, to the greatest extent feasible, contracts for work in
connection with the project shall be awarded to business concerns which are located in,
or in substantial part owned by, persons residing in the same unit of local government
14or metropolitan area (or non -metropolitan county), in which the project is located.
15 ' The parties to this contract will comply with the provisions of said
16 Section 3, and the regulations issued pursuant thereto by the Secretary of Rousing and
17 Urban Development set forth in 24 CFR 135, and all applicable rules and orders of the
18 ,Department issued thereunder prior to the execution of this contract. The CONTRACTOR
19 I,shall take appropriate action pursuant to the subcontract upon a finding that the
2V subcontractor is in violation of regulations issued by the Secretary of Rousing and
21,,Urban Development, 24 CFR 135. The CONTRACTOR will not subcontract with any
22 jisubcontractor where it has notice or knowledge that the latter has been found in
23
24 I
25
26 I
27
28
violation of regulations under 24 CPR 135. The parties to this contract certify and
agree that they are under no contractual or other disability which would prevent them
from complying with these requirements. (Source: Title 24 CFR 135 revised
April 1, 1984.)
a. Equal Employment Opportunity
In carrying out the program, the CITY shall not discriminate against any
-1-
Exhibi'-'A" to COUNTY/CITY Contract
i
1 employee or applicant for employment because of race, color, religion, sex or national
2 origin. The CITY shall take affirmative action to ensure that applicants for employment
3 are employed and that employees are treated during employment, without regard to their
4 race, color, religion, sex or national origin. Such action shall include, but not be
5 limited to, the following: employment, upgrading, demotion or transfer; recruitment
6 advertising; layoff or termination; rates of pay or other form, compensation; and
7 selection for training, including apprenticeship. The CITY shall post in conspicuous
8 places, available to employees and applicants for employment, notices to be provided by
9', the COUNTY setting forth the provisions of this nondiscrimination clause. The CITY
10
11
12
13
15
shall, in all solicitations or advertisements for employees placed by or on behalf of
the CITY, state that all qualified applicants will receive consideration for employment
without regard to race, color, religion, sex or national origin. The CITY shall
incorporate the foregoing requirements of this paragraph in all of its contracts for
program work and will require all of its contractors for such work to incorporate such
requirements in all subcontracts for program work. Such contracts shall be subject to
1611 HUD Equal Employment Opportunity regulation 24 CPR Part 130 as applicable to HUD
17 1assisted construction contracts.
181 The CITY shall cause or require to be inserted in full in any non-exempt
19,1 contract and subcontract for construction work or modification thereof, as defined in
2611 said regulations which is paid for in whole or in part with assistance under the
21 :1 Contract, the following equal opportunity clause:
22"During the performance of this contract, the contractor agrees as follows:
23' 1. The contractor will not discriminate against any employee or applicant
241for employment because of race, color, religion, sex or national origin. The contractor
25 i will take affirmative action to ensure that applicants are employed and that employees
261 are treated during employment, without regard to their race, color, religion, sex, or
27I
i national origin. Such action shall include, but not be limited to, the following:
28
Employment, upgrading, demotion or transfer, recruitment advertising, layoff or
-2-
Exit "A" to COUNTY/CITY Contract
1 termination; rates of pay or other forms of compensation and selection for training,
2 including apprenticeship. The contractor agrees to post in conspicuous places,
3 available to employees and applicants for employment, notices to be
provided by the CITY
4 setting forth the provisions of this nondiscrimination clause.
5 2. The contractor will, in all solicitations or advertisements for
6 employees placed by or on behalf of the contractor state that all qualified applicants
7 will receive consideration for employment p yment without regard to race, color, religion, sex
8 or national origin.
9 3. The contractor will send to each labor union or representative of
10 workers with which he has a collective bargaining agreement or other contract or
11 understanding, a notice advising the said labor union or worker's representatives
12i of the contractor's commitment under Section 202 of Executive Order 11246 of
13;I September 24, 1965, and shall post copies of the notice on conspicuous places available
14 j to employees and applicants for employment.
15' 4. The contractor will comply with
p y all provisions of Executive Order 11246
16 I of September 24, 1965 and of the rules, regulations and relevant orders of the Secretary
17 of Labor.
18 5. The contractor will furnish all information and reports required by
19 Executive Order 11246 of September 24, 1965 and by the rules, regulations and order of
20 Ithe Secretary of Labor or pursuant thereto and will permit access to his books, records
21'iand accounts by the Department and the Secretary of Labor for purposes of investigation
22
23
24
25
26
to ascertain compliance with such rules, regulations and orders.
6. In the event of the contractor's noncompliance with the
nondiscrimination clauses of this contract or with any of such rules, regulations or
orders, this contract may be canceled, terminated or suspended in whole or in part and
the contractor may be declared ineligible for further Government contracts or federally
27 !1
assisted construction contract in accordance with procedures authorized in Executive
28IlOrder 11246 of September 24, 1965, or by rules, regulations or order of the Secretary of
-3-
Exhibi "A" to COUNTY/CITY Contract
1 Labor or as otherwise provided by law.
2 7. The contractor will include the portion of the sentence immediately
3 preceding paragraph (1) beginning with the words "During the performance of..." and the
4 provisions of paragraphs (1) through (7) in every subcontract or purchase order unless
5 exempted by rules, regulations or orders of the Secretary of Labor issued pursuant to
6, Section 204 of the Executive Order 11246 of September 24, 1965, so that such provisions
7 will be binding upon each subcontractor or vendor. The contractor will take such action
8 with respect to any subcontract or purchase order as the Department may direct as a
9'i means of enforcing such provisions, including sanctions for noncompliance; provided,
10,1 however, that in the event a contractor becomes involved in, or is threatened with,
11 litigation with a subcontractor or vendor as a result of such direction by the
12,', Department the contractor may request the United States to enter into such litigation to
1 II protect the interest of the United States.
14'' The CITY further agrees that it will be bound by the above equal
15 ',I opportunity clause with respect to its own employment practices when it
participates in
16 federally assisted construction work. The above equal opportunity clause is not
17'''I applicable to any agency, instrumentality or subdivision of such CITY which does not
18I participate in work on or under the contract.
19 The CITY agrees that it will assist and cooperate actively with COUNTY,
201,1 HUD and the Secretary of Labor in obtaining the compliance of contractors and
21 subcontractors with the equal opportunity clause and the rules, regulations and relevant
2211 orders of the Secretary of Labor; that it will furnish the COUNTY, HUD and the Secretary
23; of Labor such information as they may require for the supervisions of such compliance;
24and that it will otherwise assist the above parties in the discharge of its primary
25I responsibility for securing compliance.
26' The CITY further agrees that it will refrain from entering into any con -
27
i
on -27j tract or contract modification subject to Executive order 11246 of September 24, 1965,
28 with a contractor debarred from or who has not demonstrated eligibility for, Government
-4-
0
117* it "A" to COUNTY/CITY Contract
1 contracts and federally assisted construction contracts pursuant to the executive order
2 and will carry out such sanctions and penalties for violation of equal opportunity
3 clause as may be imposed upon contractors and subcontractors by HUD or the Secretary of
4 Labor pursuant to Part II, Subpart B of the Executive Order. In addition, the CITY
5 agrees that if it fails or refuses to comply with these undertakings, the COUNTY may
6 take any or all of the following actions: Cancel, terminate or suspend in whole or in
7 part the grant or loan guarantee; refrain from extending any further assistance to the
8 CITY under the program with respect to which the failure or refusal occurred until
9 satisfactory assurance of future compliance has been received from such CONTRACTOR.
10 ''' (Source: H/CD Funding Agreement #4 and Executive Order 11246, Part II, Subpart B,
11 ;ection 202, Title 24 CFR 130, revised April 1, 1984.)
12 C. Federal Labor Standards
13 Except with respect to the rehabilitation of residential property designed
14 1 for residential use for less than eight families, the CITY and all contractors engaged
15 li under contracts in excess of $2,000.00 (Two Thousand Dollars and no/100) for the
16 11 construction, prosecution, completion or repair of any building or work financed in
17 whole or in part with assistance provided under this contract, shall comply with HUD
18 I requirements pertaining to such contracts and the applicable requirements of the
1911, regulations of the Department of Labor under 29 CFR Parts 3 (Copeland Act), 5, and 5a
20 1, (Davis -Bacon Act), governing the payment of wages and the ratio of apprentices and
21 trainees to journeyman: Provided, that if wage rates higher than those required under
22 such regulations are imposed by state of local law, nothing hereunder is intended to
23i relieve the CITY of its obligation, if any, to require
payment of the higher rates. The
24 ',i CITY shall cause or require to be inserted in full, in all such contracts subject to
1
251 such regulations, provisions meeting the requirements of 29 CFR 5.5 and for such
1
261 contracts in excess of $10,000, 29 CFR 5. The "Federal Labor Standards Provisions"
27I (HUD 4010) are made part of this contract.
281 No award of the contracts covered under this section of the contract shall
I
1 -5-
Exhibi 'A" to COUNTY/CITY Contract
11
be made to any contractor who is at the time ineligible under the provisions of any
2 applicable regulations of the Department of tabor to receive an award of such contract.
3 (Source: H/CD Funding Agreement $7)
4 All documents submitted by the CITY to the COUNTY which are required for
5 compliance with the Federal Labor Standards, shall be certified as being true, accurate,
6 and complete by the City Engineer or the Director of Public Works. (Source:
7 Orange County H/CD)
8 1D. Non -Discrimination
9 The CITY in an activity directly or indirectly financed under this contract,
10 shall comply with:
11 1. Title VI of the Civil Rights Act of 1964 (Pub. L. 88-352), and the
12 j regulations issued pursuant thereto (24 CFR Part 1), which provides that no person in
13 I the United States shall on the grounds of race, color, or national origin, be excluded
14:1I from participation in, be denied the benefits of, or be otherwise subjected to
15I discrimination under any program or activity for which the applicant receives Federal
16 financial assistance and will immediately take any measures necessary to effectuate this
17 assurance. If any real property or structure thereon is provided or improved with the
1V aid of Federal financial assistance extended to the applicant, this assurance shall
19 obligate the applicant, or in the case of any transfer of such property, any transferee,
20 ifor the period during which the real property or structure is used for a purpose for
21',II which the Federal financial assistance is extended, or for another purpose involving the
22 provision of similar services or benefits.
23 2. Title VIII of the Civil Rights Act of 1968 (Pub. L. 90-284), as amended,
2411 administering all programs and activities relating to housing and community development
25!l in a manner to affirmatively further fair housing; and will take action to affirmatively
26 (further fair housing in the sale or rental of housing, the financing of housing, and the
11
27'iprovision of brokerage services.
28 3. Section 109 of the Housing and Community Development Act of 1974, and
-6-
• Ex0it "A" to COUNTY/CITY Contract
1 the regulations issued pursuant thereto (24 CFR Part 570.602), which provides that no
2 person in the United States shall on the grounds of race, color, national origin, or
3 sex, be excluded from participation in, be denied the benefits of, or be subjected to
4 discrimination under, any program or activity funded in whole or in part with funds
provided under this Part.
6 4. Executive Order 11063 on equal opportunity in housing and
7 nondiscrimination in the sale or rental of housing built with Federal assistance.
8 (Source: Title 24 CFR Part 570.601, revised April 1, 1984)
9 E. Accessibility/Usability of Facilities and Buildings for Physically
10 IIII Handicapped
11 l' The CITY in any activity directly or indirectly financed under this contract
12 'II shall require every building or facility (other than a privately owned residential
13 structure) designed, constructed, or altered with funds provided under this Part to
14 !, comply with the "American Standard Specifications for Making Buildings and Facilities
15 Accessible to, and Usable by, the Physically Handicapped," Number A -117.1-R 1971,
16 subject to the exceptions contained in 41 CFR 101-19.604. The CITY will be responsible
11 ,for conducting inspections to insure compliance with these specifications by any
18 contractor or subcontractor. (Source: 24 CFR Part 570.202(R), revised April 1, 1984)
19 F. Relocation
20 1. The CITY in any activity directly or indirectly financed under this
21 contract shall:
22 a. To the greatest extent practicable under State law, comply with
2311 Sections 301 and 302 of Title III (Uniform Real Property Acquisition Policy) of the
24, Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 and
251 will comply with Sections 303 and 304 of Title III, and HUD implementing instructions at
26I 24 CFR Part 42; and
27111 b. Inform affected persons of their rights and of the acquisition
28 policies and procedures set forth in the regulations in 24 CFR Part 42 and 570.606
11 -7-
Exhibi 'A" to COUNTY/CITY Contract
1 revised April 1, 1984)
2 2. The CITY shall also:
3 a. Comply with Title II (Uniform Relocation Assistance) of the Uniform
4 Relocation Assistance and Real Property Acquisition Policies Act of 1970 and HUD
implementing regulations at 24 CFR Part 42 and 570.606;
6 b. Provide relocation payments and offer relocation assistance as
7 described in Section 205 of the Uniform Relocation Assistance Act to all persons
8 displaced as a result of acquisition of real property for an activity assisted under the
9'l Community Development Block Grant Program. Such payments and assistance shall be
10 , provided in a fair and consistent and equitable manner that insures that the relocation
11 I process does not result in different or separate treatment of such persons on account of
12 ! race, color, religion, national origin, sex, or source of income;
13 3. Assure that, within a reasonable period to time prior to displacement,
14 i comparable decent, safe and sanitary replacement dwellings will be available to all
15 'i displaced families and individuals and that the range of choices available to such
16 persons will not vary on account of their race, color, religion, national origin, sex,
17 lor source of income; and
18 4. Inform affected persons of the relocation assistance, policies and
19 (procedures set forth in the regulations at 24 CFR Part 42 and 570.606. (Source: Title
20, 24 CER Part 570.606, revised April 1, 1984)
21 G. Lead -Based Paint Hazards
22 The construction or rehabilitation of residential structures with assistance
23 provided under this Contract 1s subject to the HUD Lead -Base Paint regulations, 24 CFR
24I part 35. Any grants or loans made by the CITY or work performed by the CITY for the
2511;rehabilitation of residential structures with assistance provided under this Contract
26I shall be made subject to the provisions for the elimination of lead -base paint hazards
27 under subpart C of said regulations and the CITY shall be responsible for the
28I inspections and certifications required under Section 35.24 thereof. (Source: H/CD
-8-
Ex*t "A" to COUNTY/CITY Contract
1 Funding Agreement #5 and 24 CFR Part 35 and 570.608 revised April 1, 1984)
2 H. Flood Disaster
3 This Contract is subject to the requirements of the Flood Disaster
4 Protection Act of 1973 (P.L. 93-234). No portion of the assistance provided under this
a ' Contract is approved for acquisition or construction purposes as defined under
6 Section 3(a) of said Act, for use in an area identified by the Secretary as having
7 !, special flood hazards, which is located in a community not then :n compliance with the
8 1requirements for participation in the national flood insurance program pursuant to
9!l Section 201(d) of Said Act; and the use of any assistance provided under this Contract
10 for such acquisition or construction in such identified areas in communities then
11 iiparticipating in the national flood insurance program shall be subject to the mandatory
12
13,
14
15
purchase of flood insurance requirements of Section 102(a) of said Act.
Any Contract or Agreement for the sale, lease or other transfer of land
acquired, cleared, or improved with assistance provided under this Contract shall
contain, if such land is located in an area identified by the Secretary as having
16 special flood hazards and in which the sale of flood insurance has been made available
17,,I under the National Flood Insurance Act of 1968, as amended, 42 U.S.C. 4001 et seq.,
18 I provisions obligating the transferree and its successors or assignees to obtain and
19
maintain, during the ownership of such land, such flood insurance as required with
2011 respect to financial assistance for acquisition or construction purposes under
211,1 Section 102(a) of the Flood Disaster Protection Act of 1973. Such provisions shall be
221 required notwithstanding the fact that the construction on such land is not itself
231 funded with assistance provided under this Contract. (Source: H/CD Funding Agree -
24I ment #3)
25 The CITY shall comply with the provisions of Executive Order 11296, relating
26 to evaluation of flood hazards and Executive Order 11288 relating to the prevention,
27 control, and abatement of water pollution. (Source: Title 24 CFR 570.605 revised
28 April 1, 1984)
11 -9-
Exhib"A" to COUNTY/CITY Contract
1 I. Compliance with Air and Water Acts
2 The CITY shall cause or require to be inserted in full in all non-exempt
3 contracts or subcontracts for work furnished in whole or in part by the grant contracts,
4 the following requirements (provided that contracts, subcontracts and subloans not
5 exceeding $100,000.00 (One Hundred Thousand Dollars and no/100) are exempt from this
6 part:
7 This Contract is subject to the requirements of the Clean Air Act, as
8,1 amended 42 USC 1857 et seq., the Federal Water Pollution Control Act, as amended 33 USC
9 1251 et seq., and the regulations of the Environmental Protection Agency with respect
10 thereto, at 40 CFR Part 15, as amended from time to time.
11 In compliance with said regulations, the CITY shall cause or require to be
12 'i inserted in full in all contracts and subcontracts dealing with any non-exempt
13,; transaction thereunder funded with assistance provided under this contract, the
14 i; following requirements:
15 1. A stipulation by the contractor or subcontractors that any facility to
16 be utilized in the performance of any non-exempt contract or subcontract is not listed
17I on the list of Violating Facilities issued by the Environmental Protection Agency (EPA)
18 j pursuant to 40 CFR 15.20.
19: 2. Agreement by the contractor that he will comply with all the
20 '1I requirements of Section 114 of the Clean Air Act, as amended (42 USC 1857c-8) and
211!; Section 308 of the Federal Water Pollution Control Act, as amended (33 USC 1318)
22; relating to inspection, monitoring, entry, reports and information, as well as all other
23,! requirements specified in said Section 114 and Section 308, and all regulations and
24 i1 guidelines issued thereunder.
25,I 3. A stipulation that as a condition for the award of the contract prompt
26lnotice will be given of any notification received from the Director of the EPA, Office
27 fof Federal Activities or any agent of the office, that a facility utilized or to be
28Ilutilized for the contract is under consideration to be listed on the EPA list of
I1 -10-
E
E10 it "A" to COUNTY/CITY Contract
1 Violating Facilities.
2 4. An Agreement by the contractor that he will include or cause to be
3 included the criteria and requirements in paragraph (1) through (4) of this section in
4 every non-exempt subcontract and requiring that the contractor will take such action as
the Government may direct as a means of enforcing such provisions.
6 In no event shall any amount of the assistance provided under this
7 contract be utilized with respect to a facility which has given rise to a conviction
8 under Section 113(c)(1) of the Clean Air Act of Section 309(c) of the Federal Water
9 Pollution Control Act. (Source: H/CD Funding Agreement #6)
10 J. Management Compliance
11 The CITY in any activity directly or indirectly financed under this contract
12 shall comply with regulations, policies, guidelines and requirements of OMB Circular No.
13 A-102, Revised, and Federal Management Circular 74-4: Cost principles applicable to
14 'i grants and contract with State and local governments, and Federal Management Circular
15111 74-7: Uniform Administrative Requirements for grant-in-aid to State and local
16 governments as they relate to the application, administration, acceptance and use of
17 Federal funds under this Part. (Source: Title 24 CFR Part 570.200(4) revised April 1,
18 1984)
19 K. Obligations of Contractor with Respect to Certain Third Party Relationships
20 11 The CITY shall remain full obligated under the
y ated g provisions of this contract
21 notwithstanding its designation of any third party or parties for the undertaking of any
22 part of the program with respect to which assistance is being provided under this
2311 contract to the CITY. Such third party or parties shall comply with all lawful
24 II requirements of the CITY necessary to insure that the
4 Y program with respect to which
251111 assistance is being provided under this contract to the CITY is carried out in
261 accordance with the CITY's assurances and certifications, including those with respect
271! to the assumption of environmental responsibilities of the CITY under Section 104(h) of
28
the Housing and Community Development Act of 1974. (Source: H/CD Funding Agreement #9)
I
-11-
Exhibi •A' to COUNTY/CITY Contract
1 L. Interest of Certain Federal Officials
2 No member of Delegate to the Congress of the United States and no Resident
3 Commissioner, shall be admitted to any share or part of this contract or to any benefit
4 to arise from the same. (Source: A/CD Funding Agreement #10)
o M. Interest of Members, Officers or Employees of CITY, Members of Local
6 Governing Body or Other Public Officials
7 No member, officer or employee of the COUNTY or CITY its designees or
8 agents, no members of the governing body of the locality in which the
program is
9 situated and no other public official of such locality or localities who exercise any
10 „ functions or responsibilities with respect to the program during his tenure or for one
1 I year thereafter, shall have any interest, direct or indirect, in any contract,
12 subcontract or the proceeds thereof, for work to be performed in connection with the
13 program assisted under this contract. The CITY shall incorporate or cause to be
14 I incorporated, in all such contracts or subcontracts a provision prohibiting such
1511 1interest pursuant to the purpose of this section. (Source: H/CD Funding Agreement #11,
16 I Title 24 CFR 570.611 and 570.458(14) (M) (X), revised April 1, 1984)
17 N. Prohibition Against Payments of Bonus or Commission
18 The assistance provided under this contract shall not be used in the payment
I
1911 of any bonus or commission for the purpose of obtaining HUD approval of the application
20 Ifor such assistance or HUD approval of application for additional assistance of any
21
22
23
24 1
25
26
271
28
other approval or concurrence of HUD required under this contract, provided, however,
that reasonable fees or bona fide technical, consultant, managerial or other such
services, other than actual solicitation, are not hereby prohibited if otherwise
eligible as program cost. (Source: H/CD Funding Agreement #12)
0. Hatch Act Compliance
The CITY and COUNTY shall comply with the provisions of the Hatch Act which
limits the political activity of employees. (Source: Title 24 CFR Part 570.458(14) (M)
(Xl), revised April 1, 1984)
-12-
r�
U
Exit "A" to COON1"f/CITY Contract
1 P. Definitions
2 Throughout these Special Provisions the meaning of words shall be that
3 meaning given by the act, regulation, Executive Order, Federal Management Circular,
4 agreement, or rule cited herein as the source for the section in which the word appears.
5 (Source: Orange County Counsel)
6 Q. Note
7 Federal Management Circular 74-7 has been replaced with Office of Management
8 and Budget (OMB) A-102.
9
10
11
12
13
14
15
16
17
18
19
2011
21
22
231,
24
25I
261
27
281 JM:bjgAWP2-5 -13-
06/16/86
•
0
Housing/Community Development
REHABILITATION OF HOUSING AND MOBILE HOMES
ENVIRONMENTAL MANAGEMENT AGENCY
•
EXHIBIT "C"
HOME IMPROVEMENT PROGRAM
POLICY MANUAL
(REVISED)
COUNTY OF ORANGE
ENVIRONMENTAL MANAGEMENT AGENCY
HOUSING/COMMUNITY DEVELOPMENT PROGRAM OFFICE
1200 N. Main Street, Suite 600
Santa Ana, California 92701
Approved by the Board of Supervisors
September 18, 1984
0 0
ROME IMPROVEMENT PROGRAM POLICY MANUAL
Section 5 REBATE PROGRAM
5.01 General 22
5.02 Applicant Eligibility 22
5.03 Eligible Repairs 22
5.04 Workmanship 23
APPENDIX A PROPERTY REHABILITATION STANDARDS 24
Table of Contents
page
General Provisions
i
Section 1
IOW
INTEREST LOANS
1.01
Low Interest Loans
1
1.02
Eligibility Requirements
2
1.03
Rental Property
4
1.04
Mobilehome
5
1.05
Applicant's Income
5
1.06
FRA Title I Insurance
7
1.07
Eligible Improvements
7
1.08
Temporary Relocation Assistance
8
1.09
Processing Low Interest Loans
10
1.10
Truth -In -Lending Requirements
15
Section 2
DEFERRED PAYMENT LOANS
2.01
Deferred Payment Loans
15
2.02
Approval of Deferred Payment Loans
16
2.03
Eligibility Requirements
16
2.04
Applicant's Income
17
2.05
Eligible Improvements and Costs
17
2.06
Temporary Relocation Assistance
19
2.07
Processing Deferred Payment Loans
19
Section 3
SPOT
REHABILITATION LOANS
3.01
Spot Rehabilitation Loans
20
3.02
Processing of Spot Rehabilitation Loans
20
Section 4
REHABILITATION GRANTS
4.01
Rehabilitation Grants
20
4.02
Processing Rehabilitation Grants
21
Section 5 REBATE PROGRAM
5.01 General 22
5.02 Applicant Eligibility 22
5.03 Eligible Repairs 22
5.04 Workmanship 23
APPENDIX A PROPERTY REHABILITATION STANDARDS 24
HOME IMPROVEMENT PROGRAM
General Provision:
A. Purpose of Program
The Home Improvement Program provides below market interest rate loans
and grants to rehabilitate residential properties throughout
unincorporated areas of Orange County, and in particular areas
designated by the Housing and Community Development Program Office
(H/CD) and approved by the O.S. Department of Housing and urban
Development (HUD). The primary objectives are to upgrade and preserve
viable urban communities to principally benefit persons of
low/moderate income.
B. Distribution of Funds
The rehabilitation and preservation of housing is one of the key
eligible activities permitted and encouraged by the CDBG Act. The
County Board of Supervisors, in keeping with the intent of the
legislation, authorized a significant portion of its annual CDBG funds
to be used for a Home Improvement Program. Approved H/CD funds shall
be reserved for loans and grants to low/moderate income and qualified
applicants, as determined by various approved Rehabilitation Programs.
C. Funding Sources
Major funding comes from the Housing and Community Development Block
Grant Act (CDBG) of 1974, as amended, by the United States Housing and
Urban Development Department (HUD). Additional funding sources may
include, but not be limited to, other federal or state programs as
available, plus private funds which may result from leveraging. When
necessary, one or more funding sources may be used to cover the entire
cost of rehabilitating a particular housing unit(s).
D. Applicability of Other Federal/State Regulations
While all rehabilitation loans are subject to the requirements of this
manual, there are special provisions and limitations on the making of
rehabilitation loans depending on the type of project or program area.
Consequently, in addition to the provisions of this Policy Manual,
rehabilitation loans made on property under this program are subject
to the rules and regulations of the CDBG Act of 1974 as amended, by
HUD, and regulations governing the use of other state or federal funds
which may become available.
E. Financial Institutions
Upon recommendation by H/CD Program Office, the Board of Supervisors
may approve contracts with one or more financial institutions to
process loans/grants for the rehabilitation of single-family and
multi -family units.
-i-
0 0
F. Application Fee
The County of Orange and the financial institutions shall maintain an
application file for each application it processes. The file
maintained at the financial institution shall be separate from, and in
addition to, any other file maintained by the County of Orange.
Copies of the financial institution's files shall be made available to
the County of Orange, HUD, or appropriate state or federal officials,
upon an appropriate request.
G. Authority
The Director of the Environmental Management Agency (EMA), is
responsible for the County Home Improvement, H/CD. The Manager of
EMA's H/CD Program Office has been designated by the Director to be
responsible for the Home Improvement Program. The Housing Program
Section Chief may act on behalf of the H/CD Manager if so designated.
The above designated officials are authorized to execute documents
necessary to effectuate and further the purposes of the program; such
as property reconveyance, lien releases, subordination agreements,
assumption agreements and other instruments necessary to adjust
security, all in accordance with the guidelines established in this
policy manual as adopted by the Board of Supervisors.
H. Security Agreements
Subordination agreements, assumption agreements and other instruments
necessary to adjust security can only be allowed when:
1. The revised total amount of loans encumbered does not exceed
80 percent of the value of the property, or
2. Modified transaction does not threaten the secured interest of
the County.
3. Approval and authorization is obtained from the H/CD Manager.
4. Modified security agreements will only be authorized when it
is necessary to implement the Program.
I. Asset Limitations
No loans or grants shall be made to property owners whose net assets
exceed $75,000. Excluded from the calculation of net assets subject
to this provision, will be the principal place of residence, household
items and the value of an ownership interest in small business. This
provision does not apply to landlords applying for rehabilitation of
rental property.
J. CDBG Act of 1974- Authorization
The following sections outline the guidelines and policy procedures
for the County's Home Improvement Program. Section 570.202 is the
specific provision of the CDBG Act of 1974, as amended, which
authorizes the County to make CDBG funds available for home
improvement purposes. Whenever the use of funds and/or activity under
this program is in doubt, Section 570.202 shall prevail.
THIS POLICY MANUAL SUPERSEDES THE HOME IMPROVEMENT PROGRAM POLICY MANUAL AND
ALL AMENDMENTS AND REVISIONS PREVIOUSLY APPROVED BY THE BOARD OF SUPERVISORS
ON MAY 10, 1983.
-iii-
SECTION 1. LOW INTEREST LOANS
Section 1.01 Low Interest Loans
A. Method
The County makes available low interest loans to qualified
applicants through the Home Improvement Programs and financial
institutions approved by the Board of Supervisors.
B. Approval
A rehabilitation loan may be approved only when the following
conditions exist:
1. An executed Grant Agreement exists between the
County of Orange and HOD under Title I of the CDBG
Act of 1974, as amended, and
2. Executed agreement(s) exist between a financial
institution(s) and the County of Orange to provide
rehabilitation loans to property owners,
or
3. Agreements have been executed with other federal
and/or state agencies to make funds available to the
County.
C. Notification of Loan Decision
Applicants will be notified of loan decision by the
contracting financial institution after applications have been
accepted and processed by H/CD. The H/CD office will retain
in its files the copies of notification to the applicant of
loan decision by the financial institution. No rehabilitation
work is to be performed prior to this notice by the financial
institution and the County's Notice to Proceed. In case of
emergency health and safety conditions or special
circumstances the H/CD Manager may authorize work to proceed
prior to notification from the financial institution.
D. Restrictions on Number of Loans
The number of low interest or deferred payment rehabilitation
loans which may be made to any property owner under the Home
Improvement Program is one (1) unless waived in writing by the
H/CD Manager. Requests for a waiver of this restriction shall
be made by the loan applicant, in writing, to the Manager.
Requests to the Manager must be accompanied by the
recommendation of the Housing Program Section Chief. If a
request for a waiver of this one (1) loan restriction is
denied by the Manager, loan applicant may appeal the decision
to the Director of EMA.
DIE
Section 1.02 Eligibility Requirements
A. Property Eligibility Requirements
A rehabilitation loan may be made to properties located within
target areas designated in the County of Orange H/CD Block
Grant Application. Under the Spot Rehabilitation Program,
loans may also be made to low/moderate income persons outside
of target areas, but within any county unincorporated area or
contracting city. The property must need rehabilitation to
comply with the Property Rehabilitation Standards adopted by
the Board of Supervisors, as amended (Appendix A).
B. Applicant Eligibility Requirements
To be eligible for a housing rehabilitation low-interest loan,
the applicant must demonstrate adequate ability to repay the
loan, be of legal age, and meet the eligibility guidelines. A
rehabilitation loan may not be approved by the financial
institution if the applicant's record shows a disregard for
former credit obligations or if there is an indication of
inability to make the required payment.
A loan applicant must be the owner(s) of the property, or the
purchaser of the property under a land sales contract or any
similar contractual agreement for the purchase of real
property. An applicant having a lease for a fixed term
expiring not less than six calendar months after the maturity
of the loan may, with the owner's consent, apply for a loan.
C. Income Limits
The Housing and Community Development Act of 1974, as amended,
requires that programs principally benefit persons of
low/moderate income (persons making 80 percent or less of the
County's median income as defined by HUD). In keeping with
the intent of the legislation to benefit low/moderate income
persons and preserve and upgrade neighborhoods, the following
income requirements for participation in the program are
established:
Three interest rates are offered under the Home Improvement
Program: three (3), six (6), and nine (9) percent.
1. Three (3) Percent Interest Loan
Priority shall be given to applicants whose annual
income is within the low/moderate income limitations
prescribed by HUD. This income is equivalent to 80
percent of the median income for the Anaheim -Garden
Grove -Santa Ana Standard Metropolitan Statistical
Area (SMSA). The median income for the SMSA area is
updated periodically by HUD. This income limitation
shall not apply to investor -owners participating in
-2-
0 0
the Rental Rehabilitation Program. The County H/CD
Program has identified by formal application to HDD
specific target area for concentrated use of Housing
and Community Development funds. Applicants, who
live within the designated target areas and whose
incomes are at or below these limits are eligible to
apply for three (3) percent loans.
Interest rates for Spot Rehabilitation loans made
outside of an approved target area shall also be
three (3) percent for homeowners who meet the 80
percent median income criteria. For further detail,
see Section 3.01 on Spot Rehabilitation.
The H/CD Manager may raise these income limits by 20
percent upon staff confirmation of the existence of
a health and safety hazard.
2. Six (6) Percent and Nine (9) Percent Interest Loans
In order to provide an incentive to the
rehabilitation of substandard rental units for the
benefit of L/M income tenants, Six (6) and Nine (9)
Percent Interest Loans may be made to qualified
rental property owners on the condition that these
owners agree to comply with the requirements of
Section 1.03 of this Policy Manual.
D. Loan Amount
The maximum for a loan made shall be $45,000.00 for structures
of one the three units. For four or more units the maximum
loan shall not exceed $15,000.00 per unit. A mobilehome
rehabilitation loan may not exceed $10,000.00 unless waived in
writing by the H/CD Manager.
E. Refinance
As allowed by Section 570.202(c) (2) (ii) (B) of the Housing
and Community Development regulations, refinancing may be
permitted it is necessary to complete the rehabilitation work
for low/moderate income applicants. The section reads the
that block grant funds may be used for "Refinancing existing
indebtedness secured by a property being rehabilitated if such
refinancing is necessary or appropriate to the execution of
the Community Development and Housing Plan." If refinancing
is over 20 percent of the clients indebtedness, Housing
Program Section Chief must obtain Manager's approval.
The loan applicant is subject to the same loan limits
described in D above. For refinancing delinquent loans see
Section 1.09 (13).
-3-
Section 1.03 Rental Property
Rental properties may be eligible, at the present time, under three
programs: The County's Investor -Owner Program, the Section 8 Moderate
Rehabilitation Program and the Rental Rehabilitation Program. Under
these programs, following rehabilitation, the majority of the units
shall be occupied by low- and moderate -income persons at affordable
rents. Other programs may become available when approved by the
County Board of Supervisors.
A. County's Investor -Owner Program
Under this program, rental property units to be rehabilitated
will be made available to low/moderate income renters. Owner
must assure the H/CD office in writing that no displacement of
renters will occur and agree to accept tenants with Section 8
rental assistance or vouchers. The Housing Program Section
Chief will make a determination of acceptability of these
efforts. Applicant may appeal negative finding(s) to the H/CD
Manager. In the event no subsidy rental assistance is
available, owner must agree to keep rents affordable for seven
(7) years to laver income persons or families. (i.e., those
earning 80 percent or less of the County's median income as
defined by HUD).
B. Section 8 moderate Rehabilitation Program
Owner must also assure the H/CD office in writing that no
displacement of renters will occur, and that units to be
rehabilitated will be made available to lav/moderate income
renters. Owner must agree to accept Section 8 Certificates or
vouchers that will be provided through the County of Orange
Housing Authority or a similar program. The Housing Program
Section Chief will make a determination of acceptability of
these efforts. Applicant may appeal negative finding(s) to
the H/CD Manager.
C. Rental Rehabilitation Grant Program
This Rental Program provides for the rehabilitation of rental
units in selected target areas. Under this program, a grant
or a DPL up to $5,000.00 may be made to a rental property
owner on the condition that units to be rehabilitated will be
made available to low/moderate income renters and owner agrees
for a period of ten (1) years after the project is completed
not to convert the rehabilitated units to condominium
ownership. Owner must agree to accept Section 8 Certificates
or vouchers for tenants per unit rehabilitated that may be
available through the Orange County Housing Authority or a
similar program. The Housing Program Section Chief will make
a determination of acceptability of these efforts. Applicant
may appeal negative finding(s) to the H/CD Manager.
-4-
0 0
Section 1.04 Mobilehomes
In order to provide mobilehomes owner -occupants with a financing
mechanism to rehabilitate their units, the County has established this
program. The program provides for loans up to $10,000.00 and grants
up to $5,000.00. Where conditions warrant, the Manager may increase
the grant amount, not to exceed twenty percent for imminent hazard to
the health and safety of the applicant or the community.
For the purpose of Mobile Home Rehabilitation, all mobile homes are
considered real properties.
Besides the requirement for income eligibility, the following
conditions must be satisfied before a loan can be made to a mobilehome
owner:
A. Owner must show proof of ownership either by:
1. Possessing a State of California of Housing and
Community Development Certificate of Title,
Mobilehome, or
2. A California Department of Motor Vehicles Ownership
Certificate (known as a pink slip).
3. Other documents as may be required by HUD or the
State H/CD Department.
B. The remaining economic life of the mobilehome must be at least
five (5) years or more.
C. Mobilehome must be permanently anchored to the ground to
resist wind and seismic forces.
Section 1.05 Applicant's Income
A. Type of Applicant
In order to make an eligibility determination for a
rehabilitation loan, an owner -occupant applicant is classified
as being either low/moderate income or above low/moderate
income or an investor -owner. Low/moderate income is 80
percent of the county's median income, as defined and
periodically updated by HUD.
B. Income Components
The following is a list of components that comprise the total
income allowed an applicant for a rehabilitation loan. The
gross income of the applicant and his/her family is used to
determine eligibility. However, if a co-signer or heir is on
the title to the property, but does not reside in the property
and does not contribute to the income, a notarized statement
of non-support will be required in order to exclude the co-
signer's or heir's income. The applicant's family includes
the applicant and any other persons(s) related by blood,
-5-
0 0
marriage, or operation of law, who share the same dwelling
unit and/or have ownership interest in the property. An
applicant's gross income must be established on an annual
basis for the preceeding two years at the time of applying for
a rehabilitation loan and may include, but is not limited to:
1. The applicant's gross earnings.
2. Spouse's gross earnings and contributions from other
members of the family who share the household must
be considered if employment and earnings are on a
regular basis.
3. Other income regularly received by the applicant or
his/her family from any source.
4. Income from assets including savings, stocks, bonds,
vacant land, etc.
5. Income from real estate, including rental units on
the property to be rehabilitated is based on net
rental income. If the applicant has not owned the
property for two or more years, the County of Orange
shall estimate the income and expenditures on the
available data.
6. Self -Employment
If self-employed, the average allowable income from
the two most recent income tax returns shall be used
in determining applicant's eligibility. The
following method shall be used in determining
present income for self-employed individuals:
Net profit or loss
plus Depreciation and Depletion
equals Net Income
Plus Other Income (wages, interest, etc.)
equals Allowable Income
C. Allowances
Gross income of the applicant shall be reduced by the
following allowances when applicable.
1. Medical expenses for a major illness or chronic
condition which are not covered by insurance.
Supporting documentation must be submitted to H/CD
as evidence of a major permanent illness or chronic
condition.
G•i'
2. Unusual expenses or amounts paid for the care of
minors under 18 years of age or for the care of
disabled or handicapped family household members,
but only where such care is necessary to enable a
family member to be gainfully employed.
D. Exclusions from Income
The following income is excluded in determining income
eligibility:
1. The income of a child 18 years of age or younger;
2. Child support, including social security or pension
funds, and income from a trust fund established for
the child;
3. The income of a child who is a full-time student
living at home, and is 21 years or younger;
4. The income of a co-signer or heir who does not
reside on property may be excluded provided that a
notarized statement of non-support is submitted.
Such co-signer or heir may not be counted as a
family member for the purpose of income -level
calculation.
Section 1.06 FHA Title I Insurance
Whenever possible, loans will be processed by the financial
institution for FHA Title I Insurance.
Section 1.07 Eligible Improvements
A. General
This section sets forth, but does not limit, examples of
eligible and mandatory improvements under the rehabilitation
program as well as ineligible improvements. When the
eligibility of a proposed improvement is in question, Section
570.202 of the CDBG Act of 1974, as amended, is the final
authority.
B. Eligible Improvements
1. Additions and alternations to prolong the livability
or usefulness of existing structures such as rooms,
porches, stairways, closets, bathrooms, and
entrances are eligible, as determined necessary by
the H/CD Senior Building Inspector.
2. Exterior work to help preserve or protect
structures, such as grading, painting, roofing and
siding, is eligible.
-7-
0 0
3. Interior work to make a structure more livable such
as painting, papering, plastering, new flooring and
tile work is eligible.
4. Also eligible are repairs, restoration or
replacement of important parts of structures such as
heating systems, plumbing repairs, electrical
repairs and certain kitchen appliances in
residential structures.
5. Clearance, site preparation and site acquisition
where a unit is determined not suitable for
rehabilitation and a replacement house plan has been
approved and funded.
6. Items considered necessary to provide handicap
accessibility and/or remove architectural barriers
to the handicap.
7. Items necessary for historical restoration/
preservation.
C. Mandatory Improvements
Hazardous conditions which are a direct threat to the health,
safety and general welfare of occupants as defined in the
Uniform Housing Code and/or Property Rehabilitation Standards
as defined by Appendix A, must be corrected.
D. Ineligible Improvements
The following improvements are not eligible:
Barbecue pits, bathhouses, burglar protection bars,
dumbwaiters, wet bars, greenhouses, greenhouse windows,
airplane hangars, kennels, outdoor fireplaces or hearths,
photomurals, swimming pools, television antennae, tennis
courts. Materials, fixtures or equipment of a type or
quality, which unreasonably exceeds that customarily used in
properties of the same general type as the property to be
rehabilitated.
Section 1.08 Temporary Relocation Assistance
A. General
This section sets forth a description of temporary relocation
benefits to be made available to persons and families who are
displaced from their homes as a result of the County's Home
Improvement Program. Cost may be shared by the County and the
displaced person(s), or landlords in the case of rental
rehabilitation.
-8-
B. Conditions Requiring Temporary Relocation
if any of the following causes or conditions occur as a result
of the Home Improvement Program, it may be necessary for the
persons or families to relocate to another dwelling on a
temporary basis:
1. Water system is shut off for any extended period of
days for plumbing repairs.
2. Electrical service becomes non-operable while making
repairs to wiring.
3. Repairs which create dust and other conditions which
would aggravate allergic condition of occupant(s).
4. Structure is to be fumigated for termite control and
infestation.
5. Hazardous living conditions which result from
structural changes during construction.
6. Sanitation facilities; e.g, tub, wash basin, toilet
become non-operable.
7. Contractor requires relocation of occupants to
perform repairs and such requirement has the
concurrence of the Housing Program Section Chief and
the occupant.
C. Eligibility Requirements
Applicants approved for a loan or a grant who must find
temporary accommodations as per Section B above are eligible
for relocation benefits. Clients must actually secure and
occupy an alternative dwelling unit in order to receive
payment.
D. Amount of Assistance
Benefits will be made available for a period determined by the
Manager but not to exceed the term of the rehabilitation
contract.
County will pay the cost of the temporary accommodations up to
a daily maximum equal to the Housing Authority's rent
limitations prorated on a daily basis.
E. Procedures for Securing Temporary Relocation Assistance
1. Contractor or Rehabilitation Cost Specialist must
submit letter to the H/CD Program Office requesting
vacating of unit and specifying amount of time unit
must remain vacant.
-9-
0 i
Request for vacating of premises must be approved,
in writing, by rehabilitation staff and authorized
by H/CD Manager.
2. Person displaced presents written quote from
accommodation to rehabilitation staff. Staff will
then verify that displaced persons occupied unit and
staff will also verify amount of quote.
3. Rehabilitation staff will present claim form to
Auditor -Controller with a request for payment.
Payment will be made payable, jointly, to persons
displaced and persons who provided accommodation.
Section 1.09 Processing Low Interest Loans
A. General
This section sets forth the steps which are to be followed in
the processing of a rehabilitation loan:
1. Initial Contact
Marketing effort/strategy includes, but is not
limited to:
Press releases to metropolitan and local newspapers;
Public Services Announcements (PSAs) for television
and radio; articles in magazines, newsletters and
newspapers; paid advertisement in the print media;
staff appearances on public service radio and
television programs; flyers distributed by mail or
door-to-door contact; and presentations using a
prepared rehabilitation slide show or other graphics
at community meetings.
Upon initial contact, an application will be mailed
or given to the applicant.
2. Loan Application
If requested by applicant, loan application will be
explained to homeowner by loan counselor who may
assist in completing necessary forms. Otherwise,
loan application will be mailed or given to
applicant who will complete application.
3. Preliminary Approval of Funding Authority
Complete loan application will be forwarded by H/CD
staff to financial institution and, if applicable,
to the appropriate state or federal agency for
funding authority to:
OTO
a. verify program eligibility of applicant.
b. Verify that applicant is owner of property
to be improved.
c. Verify applicant's income and employment.
The income tax returns for the previous two
years will be obtained by H/CD staff.
d. Complete credit investigation.
e. Advise homeowner in writing of approval/
disapproval.
When appropriate, items (a) through (e) maybe
required to be performed by the County prior to
submittal to funding sources.
4. Termite Inspection
A free termite inspection will be arranged by the
County for the homeowner or property owner approved
for a rehabilitation loan. The termite company will
submit the inspection results to the rehabilitation
specialist for inclusion in the work write-up cost
estimate.
5. Work Write-up/Cost Estimate
A work write-up/cost estimate will be compiled based
on the initial inspection and the termite inspection
report. Homeowner will be given a copy of the
write-up for approval and will be advised of
estimate of loan necessary to complete
rehabilitation work.
6. Bid Process
a. Contractor
Unless homeowner elects to conduct his/her
own bid, provided regulations permit, bid
packages will be prepared by H/CD staff,
and, if possible, bids obtained from at
least three (3) qualified contractors.
(This requirement is waived under the Mobile
Home Rehabilitation and Rebate Programs
where the property owners are responsible
for the selection of qualified contractors
for the job). "Qualified" means those
contractors who are licensed by the State of
California, who have applied to participate
in the County's Home Improvement Program and
who have received written
-11-
0 0
approval of their participation in the
program from H/CD. All bids must be
returned within 20 calendar days unless
otherwise specified. Bids will be opened in
the presence of the homeowner and H/CD staff
will review bids. Responsibility for
selection of a contractor rests with the
homeowner. Homeowner must, however, select
a qualified contractor. Homeowner is not
required to select low bid, but, bid chosen
must be within 10 percent of H/CD estimate.
This requirement may be waived by the
Housing Program Section Chief in cases where
the H/CD cost estimate is proven not to
reflect current prices.
b. Owner -Builder
Homeowner shall prove to the satisfaction of
the rehabilitation specialist that he/she
has the ability to perform tasks to be
undertaken, including coordination of
contractor(s).
Where all or part of the work is to be
performed by the homeowner, then homeowner
shall submit to the rehabilitation
specialist a list of the materials,
approximate costs for these items and a
schedule for completion by homeowner. Only
material will be reimbursable, not the labor
of the homeowner or immediate family member.
This list will be submitted to H/CD prior to
preparation of bid package.
Homeowner may act on his/her own behalf to
hire contractor(s) to complete various
portions(s) of the work listed in the work
write-up. Homeowners will identify the
contractor(s) or laborers and the work items
which contractor(s) or laborers will
perform.
Failure by property owner to comply with the
above requirement will terminate his/her
application.
7. Contract/Agreement Execution
As a requirement for funding of all loans, deferred
payment loans, or grants:
A Property Owner Agreement must be executed between
the property owner and H/CD.
-12-
0 0
In conjunction with the Property Owner Agreement,
the following contracts and/or agreements will be
executed depending on method of rehabilitation
chosen by client:
a. Prime Construction Contract between
homeowner and contractor or homeowner and
sub -contractor, if applicable; i.e., owner -
builder who subcontracts any portion of the
agreed upon scope of work.
b. Owner -Builder Agreement for homeowners who
are approved to do their own rehabilitation
work or act as his/her own contractor.
In the event that homeowner wishes to provide
improvements over and above eligible work provided
for, or perform a portion(s) of the work her/
himself, the above contract(s) or agreement(s) shall
reflect the total cost of work to be done, what the
prime and/or subcontractor's responsibilities are
and work homeowner will perform. Evidence of
availability of the additional funds required must
be verified and available prior to funding of loan.
8. Executed Contracts
H/CD may forward copy of final work write-up to the
appropriate financial institution or appropriate
funding agency with request for loan documents.
Financial institution(s) will prepare and forward
loan documents at interest rate previously
determined by H/CD and advise H/CD of interest
subsidy due, if appropriate. Homeowner's payments
will be in equal monthly installments, the first
installment payment due 30 calendar days from note
date depending on financial institution policy.
H/CD obtains borrower's signature on loan documents
and returns all documents to the financial
institution(s), if appropriate.
Loan Subsidy
Loan subsidies will be
financial institutions
Supervisors.
10. Notice to Proceed
governed by contracts with
as approved by the Board of
No construction/rehabilitation work will begin until
a written Notice to Proceed is issued by H/CD and
homeowner.
d1kL
11. Smoke Detector(s)
Smoke detector(s) will be required in all
rehabilitated residential structures.
12. Loan Disbursement
a. Financial institution(s) may forward to H/CD
loan proceeds in a form prescribed by the
agency or financial institution and may
disburse progress payments upon request of
H/CD staff. Disbursements to clients will
be made only after completion of inspection
by rehabilitation specialist and verifica-
tion of billings by H/CD. Proceeds will be
disbursed by one of the following methods:
1) Progress Payments (draws)
Contractor may not receive less than
three progress payments except in
cases where rehabilitation is of a
minor nature. The progress payments
shall not exceed 90 percent of the
cost of such work items determined
by the bid breakdown. Progress
payments due Contractor shall be
paid after County approval of
receipt and verification of
contractor's invoice(s) and
satisfactory Release of Liens or
claims for Liens, by contractor,
subcontractors, laborers and
material suppliers for work
completed and materials installed.
If no liens are recorded, a 10
percent retention will be disbursed
to the contractor at expiration of
lien filing period, thirty-five (35)
calendar days after filing the
Notice of Completion. This
retention may be less than 10
percent, as determined by the
Housing Program Section Chief,
depending on total contract amount.
2) One Lump Sum
Payment may be made in one lump sum
completion of all work, less 10
percent retention. Completion
consists of passing final inspection
and filing required release forms.
-14-
n
u
0
if no liens are recorded retention
will be disbursed to the contractor
at expiration of lien filing period,
thirty-five (35) calendar days after
filing of Notice of Completion.
3) Homeowner Advancements
Upon approval of the loan, the
borrower (if the borrower is
performing the work her/himself) may
receive advancements to cover an
agreed portion of the costs of
materials consistent with the
schedule provided in work write-up.
Additional advancements may be made
when work financed by prior
advancements has been completed to
the satisfaction of H/CD.
b. Depending upon the type and level of
rehabilitation work to be conducted and the
amount of loan, H/CD may utilize escrow
services for control of fund disbursement.
13. Loan Delinquencies
The lender will provide County with a weekly, monthly, or
quarterly list of delinquent borrowers. H/CD will contact the
borrowers. Should a delinquency continue and bank informs
H/CD that foreclosure will result, H/CD Manager, upon
recommendation of Housing Program Section Chief, in order to
protect County's interest, may decide to cure the default by
refinancing existing loan to a DPL if client qualifies.
14. Appeal
A loan application which is disapproved may be resubmitted for
a DPL or Grant described in Section 2 and Section 3 below.
Subsequent rejection may be appealed under Section 2.028.
Section 1.10 Truth In Lending Requirements
H/CD shall meet all state and federal truth in lending requirements.
Section 2. DEFERRED PAYMENT LOANS
Section 2.01 Deferred Payment Loans
A deferred Payment Loan (DPL) is a zero percent (0) interest loan.
DPL's are intended to assist low -moderate income persons who are
unable to finance rehabilitation work without this assistance. The
loan becomes due and payable in a lump sum upon sale or transfer of
property, by any means, instrument or probate proceedings, whichever
a4•=
result in the shortest time for repayment. If client sells or
transfers property within five (5) years of receiving DPL, entire DPL
principal plus three (3) percent interest per annum will be paid; if
sold or transferred after five years, no interest will be charged on
DPL but entire principal will become due and payable. The DPL may not
exceed loan limits of $45,000.00. Clients shall execute a promissory
note and secure it by a Deed of Trust. If title is transferred to an
heir, an income analysis can be made to determine if heir is
low/moderate income and qualified to assume DPL, or if the DPL should
be repaid. All assumptions of DPL's shall be approved by the H/CD
Manager.
Funding for the DPL is through the H/CD Program and/or any other
federal or state programs or appropriate lending institutions under
contractual agreement with the County. Funds may be loaned directly
by the County to the eligible clients without the involvement of a
private lending institution. DPL's can also be made to rehabilitate
publicly owned residential units.
In order or preserve and upgrade affordable rental units for the
benefit of low/moderate income tenants, a DPL may be made to investor
owners who participate in the Rental Rehabilitation Programs without
regard to income. The DPL will be due and payable if fifteen (15)
years or at time of transfer of title, whichever comes first.
Section 2.02 Approval of Deferred Payment Loans
A. The criteria for an approval of a DPL are:
1) Applicant must be of low/moderate income or
qualified investor -owner in a target or spot area.
2) Applicant must be financially unable to repay loan
with the exception of investor -owners in the Rental
Rehabilitation Programs where the applicant's cash
flow after rehabilitation is not sufficient for debt
repayment and a DPL is deemed necessary to make the
project financially feasible.
3) Rehabilitation improvements are necessary to comply
with existing health and safety codes.
B. Approval Authority
A DPL will be approved or disapproved in writing by the
Manager or his designee. H/CD shall notify applicant of
results. A person whose application for a DPL has been
disapproved may appeal to the Director of EMA for a final
decision.
C. Restriction on Number of Loans
The number of DPL's which may be made to any property owner
under the Home Improvement Program is one (1). Waiver of
limitation may be granted by the Manager.
-16-
9 0
Section 2.03 Eligibility Requirements for DPLs
A. Applicant Eligibility Requirements
A DPL is intended to avoid the displacement of homeowners who
have no other means of financing repairs and improvements
which must be made to their homes. A review of DPL's executed
after June, 1983 shall be made every five (5) years to
reevaluate if clients are still low/moderate income. If a
family income exceeds 80 percent of the County median income
at that time, the DPL will be due and payable, but may be
assumed at the County's discretion.
B. Income Limits
The income limitations are those set by Section 1.02 (c) and
2.02.
Section 2.09 Applicant's Income
Method of determining applicant's income will be noted in Section
1.05.
Section 2.05 Eligible Improvements and Costs
A. General
This section sets forth examples of improvements and costs to
be financed with a DPL.
B. Eligible improvements and Costs
A DPL may be used to finance the cost of repairs and
improvements to comply with the Property Rehabilitation
Standards approved by the Board of Supervisors as amended
(Appendix A) and incipient violations of these standards. DPL
funds may also be used to finance the cost and installation of
energy conservation materials. DPL's may also be used to
remove handicap barriers and to provide handicap accessi-
bility. Hazardous conditions which are a direct threat to the
health, safety and general welfare of occupants will be
priority items to be corrected.
C. Ineligible Improvements
DPL may not provide for:
1. New construction or expansion of the size of a
structure, except in Rental Rehabilitation programs
or where overcrowding warrants.
2. Materials, fixtures or equipment of a type or
quality, which unreasonably exceeds that customarily
used in properties of the same general type as the
property to be rehabilitated.
-17-
D. Insurance and Property Taxes
The client shall maintain adequate
amount
loan on the property, as required by the Home Improvement
Program, and keep taxes current during term of DPL, except
under special government programs allowed for elderly clients.
E. Program Fees
1. Recording fees
The cost of recording the Deed of Trust and other
pertinent documents shall be waived as per
Government Code, Section 6103.
2. Policy of Title Insurance
A policy of title insurance covering the amount of
the DPL shall be obtained for the borrower and the
cost paid from the loan proceeds.
3. Tax Service Co.
Home Improvement Program may utilize services of a
Tax Service Company. Cost shall be paid from loan
proceeds.
F. Maximum loan of $45,000.00 may be made and is subject to the
same conditions set by Section 1.02 E. of this manual.
G. Escrow of Rehabilitation Funds
The applicant shall agree to permit the County of Orange, its
agents or designees, to act as escrow agents of funds loaned
through a DPL and to permit the County of Orange, its agents
or designees, to disburse such funds to the applicant/borrower
and the contractor in the manner set forth in the contract
between the applicant/borrower and the contractor or in the
contract between applicant/borrower and County in the case of
an owner/Builder, to insure the proper disbursement of such
funds. The "borrower" shall be construed to be any person or
other legal entity who holds title to the property being
rehabilitated with the assistance of a DPL and who is legally
responsible for repayment of the loan. In the case of
multiple ownership, the signature of every titleholder will be
required on a Deed of Trust where the signature of the
applicant/borrower is necessary.
H. Assumptions for Deferred Payment Loans
Assumptions of DPL's are authorized, however, new borrower's
income must be established at or below 80 percent of the
County's median income.
-1s-
9 0
DPL assumptions may be considered when one of the following
occurs.
1. Judgement of Dissolution of Marriage.
2. Death of vested title holders. Heirs of property
must be from the immediate family.
3. Title of property is transferred.
Section 2.06 Temporary Relocation Assistance
A. Processing Procedures
Temporary relocation benefits that are available to applicant
receiving a DPL are those described in Section 1.08 of this manual.
Section 2.07 Processing Deferred Payment Loans
The processing of a DPL shall be the same as that of a subsidized, low
interest loan as noted in Section 1.09 of this Policy Manual in
addition to the following:
1. Determination of Preliminary Eligibility
Rehabilitation staff will develop necessary documentation to
make determination of applicant eligibility for a DPL.
2. Obtain Preliminary Title Report, credit report, appraisal, if
needed, and verify income.
3. Determination of Final Eligibility.
After receiving preliminary title report and credit report,
staff will make a final recommendation regarding applicant's
eligibility for a DPL. Recommendation will be submitted to
H/CD Manager of his designee for approval.
4. Execution of Documents
If eligible, applicant will execute Promissory Note and Deed
of Trust. Additionally, applicant will execute DPL property
owner agreement. Once all documents are executed, Deed of
Trust will be recorded, Promissory Note and Deed of Trust will
be held by H/CD Accounting and H/CD will request title
insurance policy covering amount of loan from title company.
5. Notification of Loan Amount
A signed DPL Approval Form will be forwarded to H/CD
Accounting with the total amount needed for the DPL and the
rehabilitation process will continue.
B. Truth -In -Lending Requirements
Truth -in -lending requirements, as noted in Section 1.10 of this
manual, apply to all DPL's.
-19-
9 0
SECTION 3. SPOT REHABILITATION LOANS
Section 3.01 Spot Rehabilitation Loan
Spot rehabilitation is a component of the Rome Improvement Program.
Low interest loans, DPL's and Grants are available to owner -occupants
of low/moderate income, living in any contract city or county
unincorporated area. In order to preserve and upgrade affordable
rental units for the benefit of low/moderate income tenants, investor -
owners participating in the Rental Rehabilitation programs are also
eligible to apply.
Section 3.02 Processing of Spot Rehabilitation Loans
Requirements for approval of spot rehabilitation loans are those noted
in Section 1 of this manual except:
Eligibility Requirements
A. Property Eligibility Requirements
A rehabilitation loan may be made to any qualified
residential property owner located in the
unincorporated area of the County of Orange, or in
any part of a participating contracting city.
B. Income Limits
Spot rehabilitation loans to low/moderate income
persons shall be subject to Section 1.02 C. (1) for
3 percent loans.
C. Eligible Improvements and Costs
A spot rehabilitation loan may be used to finance
the cost of repairs and improvements as required to
bring the property into compliance with the Property
Rehabilitation Standards approved by the Hoard of
Supervisors, as amended. Spot rehabilitation loans
may also be used to finance the cost of repairs of
incipient violations of these standards. No general
property improvements are permitted.
SECTION 4. REHABILITATION GRANTS
Section 4.01 Rehabilitation Grants
In order to provide a full range of financing mechanisms for the
County's Home Improvement Program, a grant program has been
established. This program provides a grant of up to $8,000.00 with a
20 percent supplement for materials and labor to low/moderate income
owner -occupants. The goal of the program is to rectify emergency
health or safety hazards in the applicant's home and to provide energy
conservation.
-20-
0 0
Section 4.02 Processing Rehabilitation Grants
A. A rehabilitation grant may be approved subject to the same
provisions as set forth in Section 2 except as noted below:
Applicant Eligibility Requirements
1. Applicant must execute Property Owner Grant
Agreement which provides that the owner returns 100
percent of the grant to County upon sale or transfer
of title within one year of agreement execution and
50 percent of property upon sale or transfer of
title transferred between one and two years after
the execution of the agreement.
2. A rehabilitation grant maybe used to finance the
cost of repairs and improvements to comply with the
Property Rehabilitation Standards approved by the
Board of Supervisors and incipient violations of
these standards. Grant funds may also be used to
finance the cost and installation of energy
conservation materials. The maximum amount of the
rehabilitation grant may not exceed the following:
(a) $8,000.00 for conventional single family
units and $5,000.00 for mobilehomes.
(b) Where conditions warrant, the Manager may
increase the grant amount, not to exceed
twenty percent (of the above) for imminent
hazard to the health and safety of the
applicant or the community.
(c) $3,000.00 maximum for minor rehabilitation
(mini -grants) in approved target area.
B. Mini -Grants
To eliminate blight or prevent further deterioration of a
neighborhood, H/CD Program Office may provide small, minor
repair/maintenance, rehabilitation, mini -grants to qualified
residents of a low/moderate income neighborhood. Under this
mini -grant program, the above resale restriction of 4.02 A (1)
will be waived.
SECTION 5. REBATE PROGRAM
Section 5.01 Rebate Program
5.01 General
The County provides limited funding to provide rebates for previously
approved home repairs which are prepaid by the owner and verified by
H/CD. The rebates are made available for a minimum of $500.00 and a
&4L'
maximum of $3,000.00 for eligible home repairs completed in selected
target areas. Property owners are required to obtain written
preapproval for all work subject to rebate. Property owners are
required to select their own licensed contractor and to provide
itemized, paid invoices covering all work. In the case of an approved
owner builder, only materials shall be subject to rebate. Labor costs
for owners and family members are not subject to rebate.
5.02 Applicant Eligibility
Homeowners who live within a target area and whose incomes are 808 or
less of the County Median Income (as defined and periodically updated
by HUD) are eligible for 1008 rebate (up to $3,000.00) for approved
work. Homeowners shall submit income tax returns to verify income and
property tax bills to verify ownership.
5.03 Eligible Repairs
This section sets forth, but does not limit, expenses of eligible
repairs for the rebate program. Such repairs shall be judged feasible
to preserve and repair the subject property through minor rehabili-
tation, including exterior painting. Repairs which have not been
approved in writing prior to their completion shall not be eligible
for rebate. The following list gives examples of rebate -eligible
repairs:
Roof repairs/reroofing
Exterior lighting
Gutters
Screens, security locks
Sewer cleanout
Reglazing
Siding
Porch repair
Concrete driveway and walks
Ramps for handicapped
Fences
Insulation
Plumbing replacement
Water heater replacement
Energy Conservation
*Roofing with wood shakes or shingles or a new roof over an old roof
is not subject to rebate.
*Rebates are not available for appliances.
5.04 Workmanship
The County reserves the right to inspect any work which a rebate has
been applied for, and to refuse all or part of any rebate due to poor
workmanship or unacceptable materials.
JT:bjgAWpl4-3
01/21/88
-22-
Appendix A
PROPERTY REHABILITATION STANDARDS
FOR
RESIDENTIAL PROPERTIES
COUNTY OF ORANGE
ENVIRONMENTAL MANAGEMENT AGENCY
HOUSING/COMMUNITY DEVELOPMENT DIVISION
April 7, 1983
L
TABLE OF CONTENTS
PAGE
INTRODUCTION
i
CHAPTER
1
TITLE AND SCOPE
1
CHAPTER
2
ENFORCEMENT
1
CHAPTER
3
PERMITS AND INSPECTIONS
3
CHAPTER
4
DEFINITIONS
3
CHAPTER
5
SPACE AND OCCUPANCY
4
CHAPTER
6
STRUCTURAL REQUIREMENTS
6
CHAPTER
7
MECHANICAL REQUIREMENTS
6
CHAPTER
8
EXISTS
9
CHAPTER
9
FIRE PROTECTION
10
CHAPTER
10
SUBSTANDARD BUILDINGS
10
CHAPTER
11
ENERGY CONSERVATION
12
CHAPTER
12
REQUIREMENTS FOR PHYSICALLY HANDICAPPED
12
0 0
INTRODUCTION
The "Property Rehabilitation Standards" (PRS) as denoted herein have been
established after considering many codes and suggestions by the Federal
Housing Administration. These PRS are the Uniform Housing Code, 1979 Edition,
except for some minor revisions and additions, and shall be the guide for the
County in implementing its Home Improvement Program.
These PRS shall constitute the basis of the working agreement between the
Department of Housing and Urban Development (HUD) and the County of Orange.
They shall apply to all residential properties in areas designated by the
County as eligible for rehabilitation.
Where the HUD Minimum Property Standards are more restrictive, those standards
shall apply. It is recognized that the PRS are minimum property standards and
not ideal property standards.
Where actual rehabilitation occurs, replacements may be required which go
beyond the minimum standards in order that the COBG funds be utilized in a
more effective manner and a longer lasting repair be made to structures. For
example, in areas where there is a generally recognized condition of expansive
soils, larger footings may be required by H/CD. Additionally it is recognized
that a flexible interpretation of the Uniform Building Code is utilized in the
Rome Improvement Program since to require an existing older dwelling to
conform 1008 to the Uniform Building Code may be cost prohibitive.
Chapter 1
TITLE AND SCOPE
TITLE
Sec. 101. These Property Rehabilitation Standards are to be referred to
herein as PRS.
PURPOSE
Sec. 102. The purpose of these PRS is to provide minimum standards to
safeguard life, limb, health, property, safety, and welfare of the general
public and the owners and occupants of residential buildings within
jurisdiction of the County of Orange and those cities whose rehabilitation
programs are administered by the County of Orange.
SCOPE
Sec. 103. (a) Application. The provisions of these PRS shall apply to
all buildings or portions thereof used, or designed, or intended to be used,
for human habitation. Such occupancies in existing buildings may be continued
as provided in Section 104 (G) of the Building Code, except such structures as
are found to be substandard as defined in these PRS.
Where any building or portion thereof is used or intended to be used as a
combination apartment house -hotel, the provisions of the PRS shall apply to
the separate portions as if they were separate buildings.
Every rooming house or lodging housing shall comply with all requirements
of these PRS for dwellings.
(b) Alteration. Existing buildings which are altered or enlarged shall
be made to conform to these PRS insofar as the new work is concerned and in
accordance with Section 104 (a) and (b), of the Building Code. However,
exceptions may be permitted provided health, safety, and general welfare of
persons concerned are not adversely affected.
(c) Relocation. Buildings or structures moved into or within the
jurisdiction shall comply with the requirements in the Relocated Buildings
Code for new buildings and structures.
Chapter 2
ENFORCEMENT
GENERAL
Sec. 201. (a) Authority. The Housing and Community Development Manager
is hereby authorized and directed to administer and enforce all of the
provisions of these PRS.
-1-
0 0
(b) Right of Entry. Whenever necessary to make an inspection to enforce
any of the provisions of these PRS, or whenever the Housing and Community
Development Manager or his authorized representative has reasonable cause to
believe that there exists in any building or upon any premises, any condition
which make such building or premises unsafe, dangerous, hazardous, or
substandard as defined in Section 202 of these PRS, the Housing and Community
Development Manager or his authorized representative may enter such building
or premises at all reasonable times to inspect the same or to perform any duty
imposed upon the Housing and Community Manager by these PRS; provided that if
such building or premises were occupied, he shall first present proper
credentials and demand entry; and if such building or premises be unoccupied,
he shall first make a reasonable effort to locate the owner or other persons
having charge or control of the building or premises and demand entry. If
such entry is refused, the Housing and Community Development Manager or his
authorized representative shall have recourse to every remedy provided by law
to secure entry.
No owner or occupant or other person having charge, care or control of
any building or premises shall fail or neglect, after proper demand is made as
herein provided, to promptly permit entry therein by the Housing and Community
Development Manager or his authorized representative for the purpose of
inspection and examination pursuant to these PRS. Any person violating this
subsection shall be guilty of a misdemeanor.
(c) Responsibilities Defined. Every owner remains liable for violations
of duties imposed upon him by these PRS even through an obligation is also
imposed on the occupants of his building, and even though the owner has, by
agreement, imposed on the occupant the duty of furnishing required equipment
or of complying with these PRS.
Every owner, or his agent, in addition to being responsible for
maintaining his building in a sound structural condition, shall be responsible
for keeping that part of the building or premises which he occupies or
controls in a clean, sanitary, and safe condition including the shared or
public areas in a building containing two or more dwelling units.
Every owner shall, where required by these PRS, the health ordinance or
the health officer, furnish and maintain such approved devices, equipment, or
facilities for the prevention of insect and rodent infestation, and where
infestation has taken place, shall be responsible for the extermination of any
insects, rodents, or other pests when such extermination is not specifically
made the responsibility of the occupant by law or ruling.
Every occupant of a dwelling unit, in additional to being responsible for
keeping in a clean, sanitary, and safe condition that part of the dwelling or
dwelling unit or premises which he occupies and controls, shall dispose of all
his rubbish, garbage, and other organic waste in a manner required by other
laws and regulations.
Every occupant shall, where required by these PRS and by other laws and
regulations, furnish and maintain approved devices, equipment or facilities
necessary to keep his premises safe and sanitary.
&Z
0 0
SUBSTANDARD BUILDINGS
Sec. 202. All buildings or portions thereof which are determined to be
substandard as defined in these PRS are hereby declared to be public nuisances
and shall be abated by repair, rehabilitation, demolition, or removal in
accordance with procedure specified in Chapter 2, as amended (Ordinance 3062).
Chapter 3
PERMITS AND INSPECTIONS
95QJAi7i\i
Sec. 301. No person, firm, or corporation shall erect, construct,
enlarge, alter, repair, move, improve, remove, convert, or demolish any
building or structure, or cause or permit the same to be done, without first
obtaining a separate building permit for each such building or structure from
the Building Official in the manner and according to the applicable conditions
prescribed in Chapter 3 of the Building Code and in Section 302 of Ordinance
No, 3061.
FEES
Sec. 302. Whenever a building permit is required by Section 301 of these
PRS, the appropriate fees shall be paid to the Building Official as specified
in Section 304 of the Building Code and of Ordinance No. 3061.
INSPECTION
Sec. 303. All buildings or structures within the scope of these PRS and
all construction or work for which a permit is required shall be subject to
inspection by the Housing and Community Development Manager and the Building
Official in accordance with and in the manner provided by these PRS and
Sections 305 and 306 of the Building Code.
Chapter 4
DEFINITIONS
Definitions
Sec. 401. For the purpose of these PRS, certain abbreviations, terms,
phrases, words, and their derivatives shall be construed as specified in the
Building Code.
BUILDING CODE shall mean the Uniform Building Code, published by the
International Conference of Building Officials and the Code currently adopted
by the Board of Supervisors.
EFFICIENCY LIVING UNIT. Efficiency living unit is a dwelling unit
containing only one habitable room and meeting the requirements of Section
503(b), Exception.
HOT WATER. Hot water shall be water at a temperature of not less than 100
degrees F.
-3-
MECHANICAL CODE shall mean the Uniform Mechanical Code, published by the
International Conference of Building Officials and the international
Association of Plumbing and Mechanical Officials and the Code currently
adopted by the Board of Supervisors, County of Orange.
NUISANCE. The following shall be defied as nuisances:
1. Any public nuisance known at common law or in equity
jurisprudence.
2. Any attractive nuisance which may prove detrimental
to children whether in a building, on the premises
of a building, or upon an unoccupied lot. This
includes any abandoned wells, shafts, basements, or
excavations; abandoned refrigerators and motor
vehicles; or any structurally unsound fences or
structures; or any lumber, trash, fences, debris, or
vegetation which may prove a hazard for inquisitive
minors.
3. Whatever is dangerous to human life or is
detrimental to health, as determined by the Housing
and Community Development Manager.
4. Overcrowding a room with occupants.
5. Insufficient ventilation or illumination.
6. Inadequate or unsanitary sewage or plumbing
facilities.
7. Uncleanliness, as determined by the Housing and
Community Development Manager.
8. Whatever renders air, food, or drink unwholesome or
detrimental to the health of human beings as
determined by the Housing and Community Development
Manager.
Chapter 6
SPACE AND OCCUPANCY STANDARDS
LOCATION ON PROPERTY
Sec. 501. All buildings shall be located with respect to property lines
and to other buildings on the same property as required by Section 504 and
Part IV of the Building Code. Each dwelling unit and each guest room in a
dwelling or lodging house shall have access to a passageway, not less than 3
feet in width, leading to a public street or alley. Exist courts frau
apartment houses to the public way shall be not less than 44 inches in width
and 7 feet in height.
-4-
0 0
YARDS AND COURTS
Sec. 502. (a) Scope. This Section shall apply to yards and courts having
required windows opening therein.
(b) Yards. Every yard shall be not less than 3 feet in width for one-
story and two-story buildings. For buildings more than two stories in height
the minimum width of the yard shall be increased at the rate of 1 foot for
each additional story. where yards completely surround the building, the
required width may be reduced by 1 foot. For buildings exceeding 14 stories
in height, the required width of yard shall be computed on the basis of 14
stories.
(c) Courts. Every court shall be not less than 3 feet in width. Courts
having windows opening on the opposite sides, shall be not less than 6 feet in
width. Courts bounded on three or more sides by the walls of the building
shall be not less than 10 feet in length unless bounded on one end by a street
or yard. For buildings more than two stories in height the court shall be
increased 1 foot in width and 2 feet in length for each additionally story.
For buildings exceeding 14 stories in height, the required dimensions shall be
computed on the basis of 14 stories.
Adequate access shall be provided to the bottom of all courts for
cleaning purposes. Every court more than two stories in height shall be
provided with a horizontal air intake at the bottom not less than 10 square
feet in area and leading to the exterior of the building unless abutting a
yard or public space. The construction of the air intake shall be as required
for the court walls of the building, but in no case shall be less than one-
hour fire -resistive.
(d) Projection into Yards. Eaves and cornices may project into any
required yard not more than 2 inches for each foot of yard width. Unroofed
landings, porches and stairs may project in any required yard provided no
portion extends above the floor level of a habitable room; and provided
further that no such projection shall obstruct a required exit way.
ROOM DIMENSION
Sec. 503. (a) Ceiling Heights. Habitable rooms or areas shall have a
ceiling height of not less than 7 feet 6 inches except as otherwise permitted
in this Section. Kitchens, halls, bathrooms, and toilet compartments may have
a ceiling height of not less than 7 feet measured to the lowest projection
from the ceiling. where exposed beam ceiling members are spaced at less than
48 inches on center, the ceiling height shall be measured to the bottom of
these members. where exposed ceiling members are spaced at 48 inches or more
on center, ceiling height shall be measured to the bottom of the deck
supported by these members provided that the bottom of the members is not less
than 7 feet above the floor.
If any room in a building has a sloping ceiling, the prescribed ceiling
height for the room is required in only one-half the area thereof. No portion
of the room measuring less than 5 feet from the finished floor to the finished
ceiling shall be included in any computation of the minimum area thereof.
-5-
If any room has a furred ceiling, the prescribed ceiling height is
required in two-thirds the area thereof, but in no case shall the height of
the furred ceiling be less than 7 feet.
(b) Floor Area. Every dwelling unit shall have at least one room which
shall have not less than 150 square feet of floor area. Other habitable rooms
except kitchens shall have an area of not less than 70 square feet. Where
more than two persons occupy a room used for sleeping purposes the required
floor area shall be increased at the rate of 50 square feet for each occupant
in excess of two.
Additional sleeping rooms may be provided to obtain proper separation of
children or other dependents regarding sex.
EXCEPTION: Nothing in this Section shall prohibit the use
of an efficiency living unit within an apartment house
meeting the following requirements:
1. The unit shall have a living room of not less than
200 square feet of superficial floor area. No
additional 100 square feet of superficial floor area
shall be provided for each occupant of such unit in
excess of two.
2. The unit shall be provided with a separate closet.
3. The unit shall be provided with a kitchen sink,
cooking appliance and refrigeration facilities each
having a clear working space of not less than 30
inches in front. Light and ventilation conforming
to these PRS shall be provided.
4. The unit shall be provided with a separate bathroom
containing water closet, lavatory, and bathtub or
shower.
(c) Width. No habitable room other than a kitchen shall be less than 7
feet in any dimension.
Each water closet stool shall be located in a clear space not less than
30 inches in width and a clear space in front of the water closet stool of not
less than 24 inches shall be provided.
Additional bathroom facilities may be provided in order to alleviate an
overcrowded condition.
LIGHT AND VENTILATION
Sec. 504. (a) Natural Light and Ventilation. All guest rooms,
dormitories, and habitable rooms within a dwelling unit shall be provided with
natural light by means of exterior glazed openings with an area not less than
one-tenth of the floor area of such roams with a minimum of 10 square
feet. All bathrooms, water closet compartment, laundry rooms and similar
-6-
0 0
rooms shall be provided with natural ventilation by means of openable exterior
openings with an area not less than one -twentieth of the floor area of such
rooms with a minimum of 1 1/2 square feet.
All guest rooms, dormitories and habitable roams within a dwelling unit
shall be provided with natural ventilation by means of openable exterior
openings with an area of not less than one -twentieth of the floor area of such
rooms with a minimum of 5 square feet.
(b) Origin of Light and Ventilation. Required exterior openings for
natural light and ventilation shall open directly onto a street or public
alley or a yard or court located on the same lot as the building.
EXCEPTION: Required windows may open into a roofed porch
where the porch:
1. Abuts a street, yard, or court; and
2. Has a ceiling height of not less than 7 feet; and
3. Has the longer side of at least 65 percent open and
unobstructed.
A required window in a service room may open into a vent shaft which is
open and unobstructed to the sky and not less than 4 feet in least dimension.
No vent shaft shall extend through more than two stories.
For the purpose of determining light and ventilation requirements, any
room may be considered as a portion of an adjoining room when one-half of the
area of the common wall is open and unobstructed and provides an opening of
not less than one-tenth of the floor area of the interior room or 25 square
feet, whichever is greater.
(c) Mechanical Ventilation. In lieu of required exterior openings for
natural ventilation, a mechanical ventilation system may be provided. Such
system shall be capable of providing two air changes per hour in all guest
roams, dormitories, habitable rooms, and in public corridors. One-fifth of
the air supply shall be taken from the outside. In bathrooms, water closet
compartments, laundry rooms, and similar rooms a mechanical ventilation system
connected directly to the outside, capable of providing five air changes per
hour, shall be provided.
(d) Hallways. All public hallways, stairs, and other exit ways shall be
adequately lighted at all times in accordance with Section 3312(a) of the
Building Code.
SANITATION
Sec. 505. (a) Dwelling Units. Every dwelling unit shall be provided with
a bathroom equipped with facilities consisting of a water closet, a lavatory,
and either a bathtub or shower.
-7-
0
0
(b) Hotels. Where private water closets, lavatories, and baths are not
provided, there shall be provided on each floor for each sex at least one
water closet and lavatory and one bath accessible from a public hallway.
Additional water closets, lavatories, and baths shall be provided on each
floor for each sex at the rate of one for every additional guests, or
fractional number thereof in excess of 10. Such facilities shall be clearly
marked for "Men" and "Women".
(c) Kitchen. Each dwelling unit shall be provided with a kitchen. Every
kitchen shall be provided with a kitchen sink. No wooden sink or sink or
similarly absorbent material shall be permitted.
(d) Fixtures. All plumbing fixtures shall be connected to a sanitary
sewer or to an approved private sewage disposal system. All plumbing fixtures
shall be connected to an approved system of water supply and provided with hot
and cold running water necessary for its manual operation, except water
closets shall be provided with cold water only.
All plumbing fixtures shall be of an approved glazed earthenware type or
of a similarly nonabsorbent material.
(e) Water Closet Compartments. Walls and floors of water closet
compartments except in dwellings shall be finished in accordance with Section
1711 of the Building Code.
In all occupancies, accessories such as grab bars, towel bars, paper
dispensers and soap dishes, etc., provided on or within walls shall be
installed and sealed to protect structural elements from moisture.
(f) Room Separations. Every water closet, bathtub, or shower required by
these PRS shall be installed in a room which will afford privacy to the
occupant. A room in which a water closet is located shall be separated from
food preparation or storage rooms by a tight -fitting door.
(g) Installation and Maintenance. All sanitary facilities shall be
installed and maintained in safe and sanitary condition and in accordance with
all applicable laws.
Chapter 6
STRUCTURAL REQUIREMENTS
MU
Section. 601. (a) General. Buildings or structures may be of any type of
construction permitted by the Building Cade. Roofs, floors, walls,
foundations, and all other structural components of buildings shall be capable
of resisting any and all forces and loads to which they may be subjected. All
structural elements shall be proportioned and joined in accordance with the
stress limitations and design criteria as specified in the appropriate
sections of the Building Code. Buildings of every permitted type of
construction shall comply with the applicable requirements of the Building
Code.
-8-
0 0
(b) Shelter. Every building shall be weather protected so as to provide
shelter for the occupants against the elements and to exclude dampness.
(c) Protection of Materials. All wood shall be protected against termite
damage and decay as provided in the Building Code.
Chapter 7
MECHANICAL REQUIREMENTS
HEATING AND VENTILATION
Sec. 701. (a) Heating. Every dwelling unit and guest room shall be
provided with heating facilities capable of maintaining a room temperature of
70 degrees F. at a point 3 feet above the floor in all habitable rooms. Such
facilities shall be installed and maintained in a safe condition and in
accordance with Chapter 37 of the Building Code, the Mechanical Code, and all
other applicable laws. No unvented fuel -burning heater shall be permitted.
All heating devices or appliances shall be of an approved type.
(b) Electrical Equipment. All electrical equipment, wiring, and
appliances shall be installed and maintained in a safe manner in accordance
with all applicable laws. All electrical equipment shall be of an approved
type.
Where there is electrical power available within 300 feet of the premises
of any building, such building shall be connected to such electrical power.
Every habitable room shall contain at least two supplied electric convenience
outlets or one such convenience outlet and one supplied electric light
fixture. Every water closet compartment, bathroom, laundry room, furnace
room, and public hallway shall contain at least one supplied electric light
fixture.
(c) Ventilation. Ventilation for rooms and areas and for fuel -burning
appliances shall be provided as required in the Mechanical Code and in this
Code. Where mechanical ventilation is provided in lieu of the natural
ventilation required by Section 504 of this Code, such mechanical ventilating
system shall be maintained in operation during the occupancy of any building
or portion thereof.
Chapter 8
EXITS
GENERAL
Sec. 801. Every dwelling unit or guest room shall have access directly
to the outside or to a public corridor. All buildings or portions thereof
shall be provided with exits, exit ways, and appurtenances as required by
Chapter 33 of the Building Code.
Every sleeping room below the fourth story shall have at least one
operable window or exterior door approved for emergency egress or rescue. The
units shall be operable from the inside to provide a full clear opening
without the use of separate tools.
-9-
0
All egress or rescue windows from sleeping rooms shall have a minimum net
clear opening of 5.7 square feet. The minimum net clear opening height
dimension shall be 24 inches. The minimum net clear opening width dimension
shall be 20 inches. Where windows are provided as a means of egress or rescue
they shall have a finished sill height not more than 44 inches above the
floor.
Chapter 9
FIRE PROTECTION
GENERAL
Sec. 901. All buildings or portions thereof shall be provided with the
degree of fire -resistive construction as required by the Building Code, for
the appropriate occupancy, type of construction, and location on property or
in fire zone; and shall be provided with the appropriate fire -extinguishing
systems or equipment required by Chapter 38 of the Building Code.
Chapter 10
SUBSTANDARD BUILDINGS
DEFINITION
Sec. 1001. (a) General. Any building or portion thereof including any
dwelling unit, guest room or suite of rooms, or the premises on which the same
is located, in which there exists any of the following listed conditions to an
extent that endangers the life, limb, health, property, safety, or welfare of
the public or the occupants thereof shall be deemed and hereby is declared to
be a substandard building.
(b) Inadequate Sanitation. Inadequate sanitation shall include but not
be limited to the following:
1. Lack of or improper water closet, lavatory, bathtub
or shower in a dwelling unit.
2. Lack of or improper water closets, lavatories, and
bathtubs or showers per number of guests in a hotel.
3. Lack of or improper kitchen sink.
4. Lack of hot and cold running water to plumbing
fixtures in a hotel.
5. Lack of hot and cold running water to plumbing
fixtures in a dwelling unit.
6. Lack of adequate heating facilities.
7. Lack of or improper operation of required
ventilating equipment.
-10-
0
0
8. Lack of minimum amount of natural light and
ventilation required by these PRS.
9. Room and space dimensions less than required by
these PRS.
10. Lack of required electrical lighting.
11. Dampness of habitable roans.
12. Infestation of insects, vermin or rodents as
determined by the Housing and Community Development
Manager.
13. General dilapidation or improper maintenance.
14. Lack of connection to required sewage disposal
system.
15. Lack of adequate garbage and rubbish storage and
removal facilities as determined by the Housing and
Community Development Manager.
(c) Structural Hazards. Structural hazards shall include but not be
limited to the following:
1. Deteriorated or inadequate foundations.
2. Defective or deteriorated flooring or floor
supports.
3. Flooring or floor support of insufficient size to
carry imposed loads and safety.
4. Members of walls, partitions, or other vertical
supports that split, lean, list or buckle due to
defective material or deterioration.
5. Members of walls, partitions, or other vertical
supports that are of insufficient size to carry
imposed loads with safety.
6. Members of ceilings, roofs, ceiling and roof
supports, or other horizontal which sag, split, or
buckle due to defective material or deterioration.
7. Members of ceilings, roofs, ceiling and roof
supports, or their horizontal members that are of
insufficient size to carry imposed loads with
safety.
8. Fireplaces or chimneys which list, bulge, or settle,
due to defective material or deterioration.
Gia
9. Fireplaces or chimneys which are of insufficient
size or strength to carry imposed loads with safety.
10. Dangerous or deteriorating fences.
(d) Nuisance. Any nuisance as defined in these PRS.
(e) Hazardous Wiring. All wiring except that which conformed with all
applicable laws in effect to the time of installation and which has been
maintained in good condition and is being used in a safe manner.
(f) Hazardous Plumbing. All plumbing except that which conformed with all
applicable laws in affect at the time of installation and which has been
maintained in good condition and which is free of cross connections and
siphonage between fixtures.
(g) Hazardous Mechanical Equipment. All mechanical equipment, including
vents, except that which conformed with all applicable laws in effect at the
time of installation and which has been maintained in good and safe condition.
(h) Faulty Weather Protection, which shall include but not be limited to
the following:
1. Deteriorated, crumbling, or loose plaster.
2. Deteriorated or ineffective water proofing of
exterior walls, roof, foundations, or floors,
including broken windows or doors.
3. Defective or lack of weather protection for exterior
wall coverings, including lack of pant, or
weathering due to lack of paint or other approved
protective covering.
4. Broken, rotted, split, or buckled exterior wall
coverings or roof coverings.
(i) Fire Hazard. Any building or portion thereof, device, apparatus,
equipment, combustible waste, or vegetation which, in the opinion of the
Orange County Fire Warden or his deputy, is in such a condition as to cause a
fire or explosion or provide a ready fuel to augment the spread and intensity
of fire explosion arising from any cause.
(j) Faulty Materials of Construction. All materials of construction
except those which are specifically allowed or approved by these PRS and the
Building Code, and which have been adequately maintained in good and safe
condition.
(k) Hazardous or Unsanitary Premises. Those premises on which an
accumulation of weeds, vegetation, junk, dead organic matter, debris, garbage,
offal, rat harborages, stagnant water, combustible materials, and similar
materials or conditions constitute fire, health or safety hazards.
-12-
0 9
(1) Inadequate Exits. All buildings or portions thereof not provided with
adequate exit facilities as required by these PRS except those buildings or
portions thereof whose exit facilities conformed with all applicable laws at
the time of their construction and which have been adequately maintained and
increased in relation to any increase in occupant load, alteration or
addition, or any change in occupancy.
When an unsafe condition exists through lack of or improper location
of exits, additional exits may be required to be installed.
(n) Inadequate Fire -protection or Fire -fighting Equipment. All buildings
or portions thereof which are not provided with the fire -resistive
construction of fire -extinguishing systems or equipment required by these PRS,
except those buildings or portions thereof which conformed with all applicable
laws at the time of their construction and whose fire -resistive integrity and
fire -extinguishing systems or equipment have been adequately maintained and
improved in relation to any increase on occupant load, alteration or addition,
or any change in occupancy.
(o) Improper Occupancy. All buildings or portions thereof occupied for
living, sleeping, cooking or dining purposes which are not designed or
intended to be used for such occupancies.
Chapter 11
ENERGY CONSERVATION
GENERAL
Sec. 1101. (a) Energy Efficiency Performance Requirement. Appropriate
energy -conserving improvements such as insulation, caulking, and weather-
proofing must be accomplished by the owner as part of the rehabilitation under
this part, provided that these improvements are determined to be cost
effective over a period of 15 years.
(b) Energy Conservation requirements in New Building Construction shall
comply with Chapter 53, Appendix of the U.B.C.
Chapter 12
REQUIREMENTS FOR PHYSICALLY HANDICAPPED
GENERAL
Sec. 1201. (a) Units accommodating physically handicapped occupants with
wheelchairs and other special equipment shall not contain architectural
barriers which impede access or use. Handrails and ramps shall be provided as
appropriate.
JT:bjgAWP14-4 -13-
02/02/88
to
only usE
April 4, 1991
IA[OA,pAIIII
Inumm 1961
1776
�4EBe�d
Julia Havens
Orange County Environmental Management Agency
P. O. Box 4048
Santa Ana, California 92702-4048
MEMBERSOF THE CITY COUNCIL
LAWRENCE F. BUCHHEIM
KENNETH E. FRIESS
GARY L HAUSDORFER
GIL JONES
JEFF VASQUEZ
CITY MANAGER
STEPHEN B. JULIAN
Re: Year 5 and Year 11 Community Development Block Grant Contracts
Dear Ms. Havens:
The City Council of the City of San Juan Capistrano at its regular meeting held
April 2, 1991, approved the amendment to Contract No. 26270 and the newly -
developed Contract No. C40189 for use of Community Development Block Grant
Funds in the City of San Juan Capistrano.
Five copies of each Agreement are enclosed. Upon approval of the Board of
Supervisors, please return one fully -executed copy to this office.
Thank you for your cooperation. If we can be of further assistance, please call.
Ver /truly yours, �J _
Cheryl Johnson (/
City Clerk
Enclosures
cc: Julia Kimminau
32400 PASEO ADELANTO, SAN JUAN CAPISTRANO, CALIFORNIA 92675 0 (714) 493-1171
AGENDA ITEM April 2, 1991
TO: Stephen B. Julian, City Manager
FROM: Julia M. Kimminau, Community Development Assistant
SUBJECT: Housing & Community Development Block Grant Program -
Approval of Amendment to Year 5 Contract and Approval of
New Year 11 Contract
SITUATION•
A. Summary and Recommendation - In its Year 5 (FY 79-80)
application for Community Development Block Grant (CDBG)
funds, the City was allocated $37,000 for Neighborhood Housing
Rehabilitation. The City has requested that the County amend
this contract to allow for the rehabilitation of both houses
and mobile homes throughout the City.
In Year 11 (FY 85-86), the City was allocated $60,000 for
public improvements in Los Rios Street. These funds could not
feasibly be used within the County's alloted timeframe and in
order to not forfeit the funds, the City requested that they
be reprogrammed to allow for rehabilitation of both houses and
mobile homes throughout the City. A contract had not been
previously developed for the use of Year 11 funds; therefore,
the County has developed a contract that reflects the City's
request for the reprogramming of these funds.
These funds will be used to provide grants and deferred
payment loans for rehabilitation of qualifying mobile homes
and houses. It is recommended that the attached amendment to
existing Contract No. 026270 and the newly -developed Contract
No. C40189 for Community Development Block Grant funds be
approved by the City Council.
B. Background - The CDBG program provides Federal funds for
improvements to housing and public facilities which are of
benefit to low and moderate income persons. The 1974 Housing
and Community Development Act authorizes cities under 50,000
population, such as San Juan Capistrano, to receive funding
through the County Housing and Community Development program.
FOR CITY COUNCIL AGEN W
1C
Agenda Item
- 2 -
The County Board of Supervisors approved
Neighborhood Housing Rehabilitation program
No. C26270, in Year 5, Fiscal Year 1979-80.
request, an amendment has been generated to
funds to be used for the rehabilitation of
mobile homes throughout the City.
April 2, 1991
funding for a
through Contract
At the City's
allow for these
both houses and
Rehabilitation of Housing and Mobile Homes Citywide
Year 5 Contract No. C26270 $37,000
In Year 11 (FY 85-86), the County Board of Supervisors
approved funding in the amount of $60,000 for public
improvements in Los Rios Street. In response to the City's
request for reprogramming these funds, the County has
developed a contract that allows for the rehabilitation of
both houses and mobile homes citywide.
Rehabilitation of Housing and Mobile Homes Citywide
Year 11 Contract No. C40189 $60,000
COMMISSION/BOARD REVIEW AND RECOMMENDATIONS:
Not Applicable.
FINANCIAL CONSIDERATIONS:
The City will be reimbursed for expenditures on these projects by
the County Housing and Community Development Office.
NOTIFICATION
None.
ALTERNATE ACTIONS:
1. Approve the amendment to Contract No. 26270 and newly -
developed Contract No. C40189 for CDBG funds for the
rehabilitation of houses and mobile homes citywide.
2. Request additional information from staff.
Agenda Item - 3 - April 2, 1991
RECOMMENDATION•
By motion, approve the amendment to Contract No. 26270 and newly -
developed Contract No. C40189 for CDBG funds.
Respectfully submitted,
C``a M • �irnm � �
Ju a M. Kimminau
Community Development Assistant
JMK
Attachments