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1990-0227_ORANGE , COUNTY OF_Memorandum of ContractBOARD OF SUPERVISORS ORANGE COUNTY, CALIFORNIA cr" MINUTES February 27, 1990 .ACT NO. C40825 WITH THE CITY OF U12.1, YEAR XV: Environmental Management Agency requests approval of a contract developed under Housing and Community Development Block Grant (CDBG) Program for the Rehabilitation of Private Properties. MOTION: On motion by Supervisor Roth, seconded by Supervisor Wieder, the Board authorized execution of Housing and Community Development Contract No. C40825 with the City of San Juan Capistrano in the amount of $29,000. Supervisor Vasquez was absent. MOTION CARRIED. RECEIVED fW 0 9 1990 EFdAA 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 Contract No. C40825 COUNTY OF ORANGE ENVIRONMENTAL MANAGEMENT AGENCY HOUSING AND COMMUNITY DEVELOPMENT CONTRACT TITLE OF PROJECT: San Juan Capistrano: Rehabilitation of Private Properties Citywide ( 012.1) MEMORANDUM OF CONTRACT entered into this day of , 191D . 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, dated December 8, 1987 in which both parties agreed to cooperate in the undertaking, or assist in the undertaking, of community development and housing assistance activities, and WHEREAS, the CITY has submitted to the COUNTY an application for funding of a project hereinafter described, and WHEREAS, the COUNTY has entered into a separate agreement dated August 15, 1989 with the U.S. Department of Housing and Urban Development (hereinafter referred to as HUD) to fund said project under the Housing and Community Development Actj of 1974 (Public Law 93-383), as amended. NOW, THEREFORE, IT IS AGREED by and between the parties that the following provisions as well as all applicable Federal, State and County laws and regulations including the attached SPECIAL PROVISIONS, identified as EXHIBIT "A", is part of this Contract. 26 11 apply: 27 28 1. For the PURPOSES OF THIS CONTRACT the following definitions shall -1- 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 1] Contract No. C40825 a. Project Manager: The party responsible for, but whose responsibility is not limited to the following: Contracting, monitoring and implementing the project through completion. b. Director: The Director of the Orange County Environmental Management Agency (hereinafter referred to as EMA) or his designee. c. Reimbursable Basis: The CITY will provide the funds for the project and submit proof of payment to the COUNTY, whereby upon approval, the COUNTY will forward Community Development Block Grant (hereinafter referred to as CDBG) funds to repay the CITY. 2. It is understood that the CITY will act as PROJECT MANAGER for the project described as: Rehabilitation of Private Properties, Citywide (012.1). The CITY will utilize CDBG funds to eligibly provide low-interest loans, deferred payment loans, grants or rebates for home improvement of privately owned properties in the City's boundaries (see attached map, EXHIBIT "B", which is part of this Contract). All rehabilitation of single family residential units will benefit low- and moderate -income persons and rehabilitation of multi -family residential units will principally benefit (minimally 518) low- and moderate -income families. A maximum of 208 of funds provided through this Contract as referenced in Section 5.a. may be used for administration of the Housing Rehabilitation Program. 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, 1990. 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. • Contract No. C40825 1 4. CITY agrees: 2 a. Any proposed amendment to this Contract shall be submitted to and 3 approved by the COUNTY, prior to commencement by CITY of any activity covered by said 4 amendment. 5 b. To submit any and all third -party contracts proposed for funding through 6 this Contract to DIRECTOR for review and approval prior to award of such contracts by 7 CITY. 8 c. To comply with CDBG Program Regulations, as may be periodically revised 9 by HUD, Office of Management and Budget, or other Federal agencies, and including laws 10 and policies applicable to the CDBG Program. 11 d. That the project shall be implemented and appropriately maintained for 12 Community Development purposes as defined by applicable HUD provisions to ensure maximum 13 feasible benefit and utilization of the project by low- and moderate -income persons. 14 e. To maintain accounting records, official files, and other evidence 15 pertaining to costs incurred as required by all applicable HUD regulations, and all of 16 these shall be accessible for the purposes of monitoring, audits, reporting and 17 examinations by duly authorized representatives of COUNTY or HUD. These records shall 18 be kept available at CITY's office during the project's contract period and thereafter 19 for three (3) years from the date of final CITY receipt of HUD CDBG funds through this 20 Contract. 21 f. That DIRECTOR shall periodically evaluate the CITY's progress in 22 complying with the terms of this Contract. CITY shall cooperate fully during such 23 monitorings. DIRECTOR shall report the findings of each monitoring to the CITY and 24 Orange County Board of Supervisors. If it is determined by the Board of Supervisors 25 that CITY performance or progress on performance is unsatisfactory, the Board of 26 Supervisors may withhold further funding on the project pending resolution of the 27 unsatisfactory condition(s), or may terminate this Contract. In addition, the Board of 28 supervisors may require the CITY to reimburse COUNTY any funds that it determines to be -3- ' • • Contract No. C40825 1 improperly expended or not expended on the project in a timely manner based on 2 applicable CDBG Program Regulations. 3 g. That if it is determined by HUD that funds were not expended in 4 compliance with the applicable Federal laws and regulations, CITY will refund to COUNTY 5 within ninety 90 days thereafter such sums as were determined by HUD to have been 6 improperly expended. 7 h. When the project is completed, all unexpended funds remaining will be 8 returned to the COUNTY as soon as practicable, but in any event, within 180 days 9 thereafter. DIRECTOR may then reallocate returned funds to another Urban County 10 project(s) previously approved by the Board of Supervisors. Returned funds as such, may 11 be allocated by the DIRECTOR up to the lesser amount of ten percent (10%) of total 12 Contract funds provided herein Section 5.a. or Ten Thousand Dollars ($10,000.00). 13 i. Should the COUNTY receive returned funds from other Urban County 14 projects, funding for this Contract, upon proof of anticipated cost overruns, may be 15 increased at the discretion and upon written authorization of the DIRECTOR up to the 16 lesser amount of ten percent (108) of total Contract funds provided herein Section 5.a. 17 or Ten Thousand Dollars ($10,000.00). 18 j. To assume responsibility for compliance with the California 19 Environmental Quality Act (CEQA) and to provide COUNTY with necessary information to 20 comply with the National Environmental Policy Act (NEPA) prior to commencing project 21 implementation. This may include, when applicable, CITY preparation of NEPA 22 documentation in coordination with County staff. 23 5. Project Funding: 24I a. Project will be financed under this Contract as follows: I 25; Administration $ 5,800.00 (Five Thousand Eight Hundred i 261 Dollars and no/100). 1 27i Loans Grants and Rebates $23,200.00 (Twenty-three Thousand Two 28 1 Hundred Dollars and no/100). • • Contract No. C40825 1 Total CDBG Funds $29,000.00 (Twenty-nine Thousand Dollars 2 and no/100). 3 b. COUNTY shall not be responsible for any costs which exceed the approved 4 CDBG funding amount as referenced in Section 5.a. unless otherwise provided in advance 5 as referenced in Section 4.i. 6 c. Payment by the COUNTY to the CITY shall be on a reimbursable basis unless CITY has been authorized and issued cash advances by COUNTY under this Contract. i 8 d. Cash advances requested by the CITY under this Contract shall be made by 9 the COUNTY to the CITY if the following conditions are met: 10 (1) The CITY has demonstrated to DIRECTOR through certification in a 11 form prescribed by DIRECTOR and subsequently through performance, its willingness and 12 capacity to establish CITY financial procedures that will minimize the time elapsing 13 between the receipt of funds and proper disbursement of such funds. 14 (2) The CITY certifies to DIRECTOR, that the CITY's financial I 15 management system meets the standards for fund control and accountability prescribed in 161 Office of Management and Budget Circular No. A-102, as amended from time to time. 171 (3) The CITY complies with the cash advance procedures required by 18 financial procedures of M. These procedures require that upon written receipt of 19 funds from the COUNTY, the CITY shall disburse payment (s) to vendor (s) within five (5) �I 20 working days and submit evidence of such disbursement(s) (i.e., warrant copies, etc.) to 21 the COUNTY. 22 If the CITY is subsequently found, by DIRECTOR, to be in noncompliance !, 23 with Section 5.d.(1) through Section 5.d.(3), CITY shall be paid on a 24reimbursable basis. 251 e. Reimbursable basis payments, as referred to in Section 5.c. above, 26j and/or cash advances described in Section 5.d. above, shall be made in accordance with 27 EMA financial procedures. In the event of conflict between EMA financial procedures and 281 any applicable statutes, rules or regulations of HUD, including Office of Management and -5- 1 2 3 4 5 61 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 i I 26 271 0 • • Contract No. C40825 Budget Circular No. A-102, the latter shall prevail. 6. CITY must inform the DIRECTOR (through periodic reports requested by EMA 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. I a. CITY shall keep and maintain appropriate records on the use of any such I 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 I 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 li 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 -6- 11 21 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 • • Contract No. C40825 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 A128 and forward a copy to DIRECTOR. DIRECTOR shall have the right to ensure that necessary corrective actions are made by the CITY for any audit findings pertinent to CITY handling of funding attributable to the CDBG Program per Federal requirements. 9. Neither COUNTY nor any officer nor employee thereof shall be responsible for any damage or liability occurring by reason of any action or omission of CITY or its agents, associates, contractors, subcontractors, materialmen, laborers, or any other persons, firms, or corporations furnishing or supplying work service, materials, or supplies in connection with CITY's performance of this Contract and from any and all claims and losses accruing or resulting to any persons, firm or corporation for personal injuries or property damage resulting from or as a consequence of, CITY's performance of this Contract under or in connection with any work, authority or jurisdiction delegated to CITY under this Contract. It is also understood and agreed that, pursuant to California Government Code Section 895.4, CITY shall fully indemnify, defend and hold COUNTY harmless from any liability imposed for injury (as defined by California Government Code Section 810.8) occurring by reason of any action or omission of CITY under or in connection with any work, authority or jurisdiction delegated to CITY under this Contract. CITY shall act in an independent capacity and not as officers, employees or agents of COUNTY. 10. Neither CITY nor any officer nor employee thereof shall be responsible for any damage or liability occurring by reason of any action or omission of COUNTY, its agents, associates, contractors, subcontractors, materialmen, laborers, or any other persons, firms, or corporations furnishing or supplying work, service, materials, or supplies in connection with COUNTY's performance of this Contract and from any and all claims and losses accruing or resulting to any persons, firm or corporation for personal 28 ''injuries or property damage resulting from or as a consequence of COUNTY's performance • . Contract No. C40825 of this Contract under or in connection with any work, authority or jurisdiction delegated to COUNTY under this Contract. It is also understood and agreed that, pursuant to California Government Code Section 895.4, COUNTY shall fully indemnify, defend and hold CITY harmless from any liability imposed for injury (as defined by California Government Code Section 810.8) occurring by reason of any action or omission of COUNTY under or in connection with any work, authority or jurisdiction delegated to COUNTY under this Contract. COUNTY shall act in an independent capacity and not as officers, employees or agents of CITY. 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. 21 3 4 5 6 7 8 9 10 11 12 13 14 15 161 17 18 19 20 21 22 23 24 25 26 27 28 • • Contract No. C40825 IN WITNESS WHEREOF, CITY has caused this Contract to be executed by its mayor jand 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: February 6, 1990 ATTEST: ty Dated: ac - -).-I-10 SIGNED AND CERTIFIED THAT A COPY OF THIS DOCUMENT HAS BEEN DELIVERED TO THE CHAIRMAN OF THE BOARD. LINDA D. R' H � a.-;�L-"7..�� Clerk of the Board of Supervisors of Orange County, California APPROVED AS TO FORM: ADRIAN RUYPER, COUNTY COUNSEL ORANGE COUNTY, CALIFORNIA Byi H/CD V`^" 1 •O^ �,y\- gay%l4- JMH:bjgWPS-4(C40825) 11/29/89 CITY OF SAN JUAN CAPISTRANO COUNTY OF ORANGE, a political subdivision of the State of California By �� ��• I ,4 �; Chairman of the Boar S pervisors COUNTY 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 • SPECIAL PROVISIONS Exit "A" to COUNTY/CITY Contract) A. Section 3 - Compliance with the Provision of Training Employment and Business Opportunity The CITY shall cause or require to be inserted in full in all contracts and subcontracts for work financed in whole or part with federal financial assistance provided under this Contract, the Section 3 clause set forth in 24 CPR 135.20(b). The CITY will provide such copies of 24 CFR Part 135, as may be necessary for the information of parties to contracts required to contain the said Section 3 clause. Section 3 requires that to the greatest extent feasible, opportunities for training and employment be made available to lower income residents within the unit of local government or metropolitan area (or non -metropolitan county), in which the project 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 or metropolitan area (or non -metropolitan county), in which the project is located. The parties to this contract will comply with the provisions of said Section 3, and the regulations issued pursuant thereto by the Secretary of Housing and Urban Development set forth in 24 CFR 135, and all applicable rules and orders of the Department issued thereunder prior to the execution of this contract. The CONTRACTOR shall take appropriate action pursuant to the subcontract upon a finding that the subcontractor is in violation of regulations issued by the Secretary of Housing and Urban Development, 24 CPR 135. The CONTRACTOR will not subcontract with any subcontractor where it has notice or knowledge that the latter has been found in violation of regulations under 24 CFR 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.) B. Equal Employment Opportunity In carrying out the program, the CITY shall not discriminate against any -1- 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 27 0 Exhib, "A" to COUNTY/CITY Contract) employee or applicant for employment because of race, color, religion, sex or national origin. The CITY shall take affirmative action to ensure that applicants for employment are employed and that employees are treated during employment, without regard to their race, color, religion, sex or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer; recruitment advertising; layoff or termination; rates of pay or other form, compensation; and selection for training, including apprenticeship. The CITY shall post in conspicuous places, available to employees and applicants for employment, notices to be provided by the COUNTY setting forth the provisions of this nondiscrimination clause. The CITY 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 HUD Equal Employment Opportunity regulation 24 CFR Part 130 as applicable to HUD assisted construction contracts. The CITY shall cause or require to be inserted in full in any non-exempt contract and subcontract for construction work or modification thereof, as defined in said regulations which is paid for in whole or in part with assistance under the Contract, the following equal opportunity clause: "During the performance of this contract, the contractor agrees as follows: 1. The contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex or national origin. The contractor will take affirmative action to ensure that applicants are employed and that employees are treated during employment, without regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to, the following: Employment, upgrading, demotion or transfer, recruitment advertising, layoff or -2- . Exit "A' to COUNTY/CITY Contract - 11 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 termination: rates of pay or other forms of compensation and selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the CITY setting forth the provisions of this nondiscrimination clause. 2. The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex or national origin. 3. The contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice advising the said labor union or worker's representatives of the contractor's commitment under Section 202 of Executive Order 11246 of September 24, 1965, and shall post copies of the notice on conspicuous places available to employees and applicants for employment. 4. The contractor will comply with all provisions of Executive Order 11246 of September 24, 1965 and of the rules, regulations and relevant orders of the Secretary of Labor. 5. The contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965 and by the rules, regulations and order of the Secretary of Labor or pursuant thereto and will permit access to his books, records and accounts by the Department and the Secretary of Labor for purposes of investigation 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 assisted construction contract in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, or by rules, regulations or order of the Secretary of Q9D 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 Exhit "A" to COUNTY/CITY Contract) Labor or as otherwise provided by law. 7. The contractor will include the portion of the sentence immediately preceding paragraph (1) beginning with the words "During the performance of..." and the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations or orders of the Secretary of Labor issued pursuant to Section 204 of the Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as the Department may direct as a means of enforcing such provisions, including sanctions for noncompliance; provided, however, that in the event a contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the Department the contractor may request the United States to enter into such litigation to protect the interest of the United States. The CITY further agrees that it will be bound by the above equal opportunity clause with respect to its own employment practices when it participates in federally assisted construction work. The above equal opportunity clause is not applicable to any agency, instrumentality or subdivision of such CITY which does not participate in work on or under the contract. The CITY agrees that it will assist and cooperate actively with COUNTY, HUD and the Secretary of Labor in obtaining the compliance of contractors and subcontractors with the equal opportunity clause and the rules, regulations and relevant orders of the Secretary of Labor; that it will furnish the COUNTY, HUD and the Secretary of Labor such information as they may require for the supervisions of such compliance; and that it will otherwise assist the above parties in the discharge of its primary responsibility for securing compliance. The CITY further agrees that it will refrain from entering into any con- tract or contract modification subject to Executive Order 11246 of September 24, 1965, with a contractor debarred from or who has not demonstrated eligibility for, Government -4- • E�it W 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 BUD 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: 8/CD Punding Agreement #4 and Executive Order 11246, Part II, Subpart B, 11 Section 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 for residential use for less than eight families, the CITY and all contractors engaged 15 under contracts in excess of $2,000.00 (Two Thousand Dollars and no/100) for the 16 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 BUD 18 requirements pertaining to such contracts and the applicable requirements of the 19 regulations of the Department of Labor under 29 CFR Parts 3 (Copeland Act), 5, and 5a 20 (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 23 relieve the CITY of its obligation, if any, to require payment of the higher rates. The 24 CITY shall cause or require to be inserted in full, in all such contracts subject to 25 such regulations, provisions meeting the requirements of 29 CFR 5.5 and for such 26 contracts in excess of $10,000, 29 CFR 5. The *Federal Labor Standards Provisions" 27 (BOD 4010) are made part of this contract. 28 No award of the contracts covered under this section of the contract shall -5- Exhib: "A" to COUNTY/CITY Contract) 1 be made to any contractor who is at the time ineligible under the provisions of any 2 applicable regulations of the Department of Labor 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 D. 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 regulations issued pursuant thereto (24 CFR Part 1), which provides that no person in 13 the United States shall on the grounds of race, color, or national origin, be excluded 14 from participation in, be denied the benefits of, or be otherwise subjected to 15 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 18 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 for the period during which the real property or structure is used for a purpose for 21 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, 24 administering all programs and activities relating to housing and community development 25 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 27 provision of brokerage services. 28 3. Section 109 of the Housing and Community Development Act of 1974, and -6- i Ex*t "A" to COUNTY/CITY Contract) the regulations issued pursuant thereto (24 CPR Part 570.602), which provides that no person in the United States shall on the grounds of race, color, national origin, or sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under, any program or activity funded in whole or in part with funds provided under this Part. 4. Executive Order 11063 on equal opportunity in housing and nondiscrimination in the sale or rental of housing built with Federal assistance. (Source: Title 24 CFR Part 570.601, revised April 1, 1984) E. Accessibility/Usability of Facilities and Buildings for Physically Handicapped The CITY in any activity directly or indirectly financed under this contract shall require every building or facility (other than a privately owned residential structure) designed, constructed, or altered with funds provided under this Part to comply with the "American Standard Specifications for Making Buildings and Facilities Accessible to, and Usable by, the Physically Handicapped," Number A -117.1-R 1971, subject to the exceptions contained in 41 CPR 101-19.604. The CITY will be responsible for conducting inspections to insure compliance with these specifications by any contractor or subcontractor. (Source: 24 CFR Part 570.202(R), revised April 1, 1984) F. Relocation 1. The CITY in any activity directly or indirectly financed under this contract shall: a. To the greatest extent practicable under State law, comply with Sections 301 and 302 of Title III (Uniform Real Property Acquisition Policy) of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 and will comply with Sections 303 and 304 of Title III, and HUD implementing instructions at 24 CPR Part 42; and b. Inform affected persons of their rights and of the acquisition policies and procedures set forth in the regulations in 24 CPR Part 42 and 570.606 -7- 1 2 3 4 5 6 7 8 9 10 12! 13 14 15 16 17 18 19 20 21 22 23 25 26 27 28 8xhib. "A" to COUNTY/CITY Contract revised April 1, 1984) 2. The CITY shall also: a. Comply with Title II (Uniform Relocation Assistance) of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 and HUD implementing regulations at 24 CFR Part 42 and 570.606; b. Provide relocation payments and offer relocation assistance as described in Section 205 of the Uniform Relocation Assistance Act to all persons displaced as a result of acquisition of real property for an activity assisted under the Community Development Block Grant Program. Such payments and assistance shall be provided in a fair and consistent and equitable manner that insures that the relocation process does not result in different or separate treatment of such persons on account of race, color, religion, national origin, sex, or source of income; 3. Assure that, within a reasonable period to time prior to displacement, comparable decent, safe and sanitary replacement dwellings will be available to all displaced families and individuals and that the range of choices available to such persons will not vary on account of their race, color, religion, national origin, sex, or source of income; and 4. Inform affected persons of the relocation assistance, policies and procedures set forth in the regulations at 24 CFR Part 42 and 570.606. (Source: Title 24 CFR Part 570.606, revised April 1, 1984) G. Lead -Based Paint Hazards The construction or rehabilitation of residential structures with assistance provided under this Contract is subject to the HUD Lead -Base Paint regulations, 24 CFR Part 35. Any grants or loans made by the CITY or work performed by the CITY for the rehabilitation of residential structures with assistance provided under this Contract shall be made subject to the provisions for the elimination of lead -base paint hazards under subpart C of said regulations and the CITY shall be responsible for the inspections and certifications required under Section 35.24 thereof. (Source: H/CD M 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 • Edit "A" to COUNTY/CITY Contract) Funding Agreement #5 and 24 CFR Part 35 and 570.608 revised April 1, 1984) H. Flood Disaster This Contract is subject to the requirements of the Flood Disaster Protection Act of 1973 (P.L. 93-234). No portion of the assistance provided under this Contract is approved for acquisition or construction purposes as defined under Section 3(a) of said Act, for use in an area identified by the Secretary as having special flood hazards, which is located in a community not then in compliance with the requirements for participation in the national flood insurance program pursuant to Section 201(d) of Said Act; and the use of any assistance provided under this Contract for such acquisition or construction in such identified areas in communities then participating in the national flood insurance program shall be subject to the mandatory 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 special flood hazards and in which the sale of flood insurance has been made available under the National Flood Insurance Act of 1968, as amended, 42 U.S.C. 4001 et seq., provisions obligating the transferree and its successors or assignees to obtain and maintain, during the ownership of such land, such flood insurance as required with respect to financial assistance for acquisition or construction purposes under Section 102(a) of the Flood Disaster Protection Act of 1973. Such provisions shall be required notwithstanding the fact that the construction on such land is not itself funded with assistance provided under this Contract. (Source: H/CD Funding Agree- ment #3) The CITY shall comply with the provisions of Executive Order 11296, relating to evaluation of flood hazards and Executive Order 11288 relating to the prevention, control, and abatement of water pollution. (Source: Title 24 CFR 570.605 revised April 1, 1984) -9- 1 2 3 4 5 6 7 91 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhib "A" to COUNTY/CITY Contract I. Compliance with Air and Water Acts The CITY shall cause or require to be inserted in full in all non-exempt contracts or subcontracts for work furnished in whole or in part by the grant contracts, the following requirements (provided that contracts, subcontracts and subloans not exceeding $100,000.00 (One Hundred Thousand Dollars and no/100) are exempt from this part: This Contract is subject to the requirements of the Clean Air Act, as amended 42 USC 1857 at seq., the Federal Water Pollution Control Act, as amended 33 USC 1251 et seq., and the regulations of the Environmental Protection Agency with respect thereto, at 40 CFR Part 15, as amended from time to time. in compliance with said regulations, the CITY shall cause or require to be inserted in full in all contracts and subcontracts dealing with any non-exempt transaction thereunder funded with assistance provided under this contract, the following requirements: 1. A stipulation by the contractor or subcontractors that any facility to be utilized in the performance of any non-exempt contract or subcontract is not listed on the list of Violating Facilities issued by the Environmental Protection Agency (EPA) pursuant to 40 CFR 15.20. 2. Agreement by the contractor that he will comply with all the requirements of Section 114 of the Clean Air Act, as amended (42 USC 1857c-8) and Section 308 of the Federal Water Pollution Control Act, as amended (33 USC 1318) relating to inspection, monitoring, entry, reports and information, as well as all other requirements specified in said Section 114 and Section 308, and all regulations and guidelines issued thereunder. 3. A stipulation that as a condition for the award of the contract prompt notice will be given of any notification received from the Director of the EPA, Office of Federal Activities or any agent of the office, that a facility utilized or to be utilized for the contract is under consideration to be listed on the EPA list of -10- • Ex it W 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 5 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 grants and contract with State and local governments, and Federal Management Circular 15 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 R. Obligations of Contractor with Respect to Certain Third Party Relationships 20 The CITY shall remain fully obligated under the 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 23 contract to the CITY. Such third party or parties shall comply with all lawful 24 requirements of the CITY necessary to insure that the program with respect to which 25 assistance is being provided under this contract to the CITY is carried out in 26 accordance with the CITY's assurances and certifications, including those with respect 27 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) -11- Exhib "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: H/CD Funding Agreement #10) 5 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 11 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 incorporated, in all such contracts or subcontracts a provision prohibiting such 15 interest pursuant to the purpose of this section. (Source: H/CD Funding Agreement #11, 16 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 19 of any bonus or commission for the purpose of obtaining HUD approval of the application 20 for such assistance or HUD approval of application for additional assistance of any 21 other approval or concurrence of HUD required under this contract, provided, however, 22 that reasonable fees or bona fide technical, consultant, managerial or other such 23 services, other than actual solicitation, are not hereby prohibited if otherwise 24 eligible as program cost. (Source: H/CD Funding Agreement #12) 25 0. Hatch Act Compliance 26 The CITY and COUNTY shall comply p y with the provisions of the Hatch Act which 27 limits the political activity of employees. (Source: Title 24 CFA Part 570.458(14) (M) 28 (X1), revised April 1, 1984) -12- 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 Eeit "A" to COUNTY/CITY Contract P. Definitions Throughout these Special Provisions the meaning of words shall be that meaning given by the act, regulation, Executive Order, Federal Management Circular, agreement, or rule cited herein as the source for the section in which the word appears. (Source: Orange County Counsel) Q. Note Federal Management Circular 74-7 has been replaced with Office of Management and Budget (OMB) A-102. JM:bjgAWP2-5 -13- 06/16/86 same rA o %fA EXHIBIT "B" Contract No. SAN JUAN CAPISTRANC CITY-WIDE REHABILITATION 0 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 HOME 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 LOW 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 FHA 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 r • • 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 U.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 (BUD). 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- 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. E 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. De 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- the Rental Rehabilitation Program. The County H/CD Program has identified by formal application to HOD 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) (H) 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 earning 80 percent or defined by HUD). B. Section 8 moderate Rehabilitation Program cies. (i.e., tnos s median income as 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 low/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- 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 HOD. 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- 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. U-72 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 cwt be counted as a family member for the purpose of income -level calculation. Section 1.06 PEA 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 CDSG 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- 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 systemg, 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. S:E 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 0 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 contacts 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: -10- 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- 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- 8. 9. 10. 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 oontract(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. 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. 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. -13- 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- 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 -15- 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 rate 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 B/CD Manager. Funding for the DPL is through the B/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- 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 2.04 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 fire and hazard insurance with the County listed as loss payee for the amount of the loan on the property, as required by the Rome 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. Roane 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. R. 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. -18- 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- 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 Board 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 Rome 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- 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, 8/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 8/CD. The rebates are made available for a minimum of $500.00 and a -21- 0 0 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:bjgAWP14-3 -22- 01 /21 /RA 0 Appendix A PROPERTY REHABILITATION STANDARDS FOR PROPERTIES COUNTY OF ORANGE ENVIRONMENTAL MANAGEMENT AGENCY HOUSING/COMMUNITY DEVELOPMENT DIVISION April 7, 1983 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 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 Cade, 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 CDBG 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 Home Improvement Program since to require an existing older dwelling to conform 1008 to the Uniform Building Code may be cost prohibitive. i Chapter 1 TITLE AND SCOPE TITLE 0 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- (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 d-elling 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. -2- 9 0 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 GENERAL 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. 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 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. mm 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 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 from apartment houses to the public way shall be not less than 44 inches in width and 7 feet in height. -4- 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. 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 roam 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 rooms with a minimum of 10 square feet. All bathrooms, water closet compartment, laundry rooms and similar -6- 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 romans, 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 rooms, 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- (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 GENERAL Section. 601. (a) General. Buildings or structures may be of any type of construction permitted by the Building Code. 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. Q7D (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- 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 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 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- 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. -11- L 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- n LJ (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 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 O.B.C. Chapter 12 REQUIREMENTS FOR PHYSICALLY HANDICAPPED 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 0 February 8, 1990 Ms. Julia Havens Housing and Community Development Program Office P. O. Box 4048 Santa Ana, California 92702-4048 MEMBERS OF THE CITY COUNCIL ANTHONY L. BLAND LAWRENCE F. BUCHMEIM KENNETH E. FRIESS GARY L. HAUSOORFER PHILLIP R. SCHWARTIE CITY MANAGER STEPHEN B JULIAN Re: 15th Year Contract, Housing and Community Development Contract Dear Ms. Havens: At their regular meeting held February 6, 1990, the City Council of the City of San Juan Capistrano approved the two agreements for the Year 15 Housing and Community Development Block Grant funds. Enclosed are three signed copies of Contract No. C40825, for $29,000 for rehabilitation of Private Properties Citywide; and, three copies of Contract No. C40826, for $55,000 for rehabilitation of private properties, mobile homes. The agreements have all been signed by the Mayor and City Clerk. Upon approval by the Board of Supervisors, I would appreciate receiving fully - executed copies of each agreement for our files. Thank you for your cooperation. Very truly yours, Mar�A. over, CMC City Clerk MAH/cj Enclosures cc: Brian Fisk 32400 PASEO ADELANTO, SAN JUAN CAPISTRANO, CALIFORNIA 92675 01 (714) 493-1171 0 • AGENDA ITEM February 6, 1990 TO: Stephen B. Julian, City Manager FROM: Jeffrey C. Parker Assistant to the City Manager SUBJECT: Housing & Community Development Block Grant Program - Approval of 15th Year Contract (FY 1989-90) SITUATION A. Summary and Recommendation - The City has been allocated $84,000 in Community Development Block Grant (CDBG) funds for the Year 15, FY 1989-90. These funds will be used to provide grants for rehabilitation of qualifying residences in the City. It is recommended that the attached contracts with the County for the use of these 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 (HCD) program. In 1989, the County Board of Supervisors approved funding for the City's 1989-90 Year 15 program as follows: 012.4 Rehabilitation of Private Properties (Mobile Homes): $55,000 Mobile Home Rehabilitation Program for low- and moderate -income resi- dents of the seven mobile home parks in the City 012.1 Rehabilitation of Private Properties (City-wide Housing): $29,000 Single Family Residence Rehabilita- tion Program for low- and moderate - income residents throughout the City In order for the City to utilize these funds, an operation agreement must be entered into between the County of Orange and the City of San Juan Capistrano. The agreement outlines the amount of funds, the use of funds, who may quality, and compliance with employment and labor regulations, non- discrimination, and other similar provisions. The City has entered into these agreements for the past fourteen years. FOR CITY COUNCIL AGEND #/ 4 1 Agenda Item - 2 - February 6, 1990 Contracts for these projects are executed after approval at the Federal level early in the fiscal year of the project. However, it is not unusual for the City to receive the contract several months into the fiscal year of the project. The process was further delayed this year at both the Federal and County levels. PUBLIC NOTIFICATION Public hearings for the 15th Year Application were held in October and November 1988. COMMUNITY REDEVELOPMENT AGENCY The mobile home parks and City-wide residential areas are not located in the Redevelopment Project Area, except for the Los Rios District. Agency assistance will not be required. OTHER BOARDS/COMMISSIONS The Los Rios Review Committee and the Planning Commission approved the Year 15 Application. FINANCIAL CONSIDERATION The City would make the expenditures for these rehabilitation programs and then submit invoices to the County HCD Office. ALTERNATE ACTIONS 1. Approve the Year 15 Operating Agreements for CDBG funds. 2. Request additional information from staff. -------------------------------------------------------------- -------------------------------------------------------------- RECOMMENDATION By motion, authorize the Mayor to execute the Year 15 CDBG Operating Agreements. Respectfully sub tted, *G /� re . Parker Assistant to the City Manager JCP/st Attachments