HomeMy WebLinkAbout2019-04-08 19-147 Order
04/08/201919-147
04/08/2019
19-147
Community & Economic Development
Order
N/A
Title, Order
Adopting the City of Bangor Community Development Residential Rehabilitation Loan Program Policies and
Procedures
This Order will update the City of Bangor Community Development Residential Rehabilitation Loan
Program Policies and Procedures and replace the previous policies and procedures approved and
amended by the previous Council Orders.
In 1982, the City Council adopted a Community Development Property Rehabilitation Loan Program.
Over the years, the City Council has amended these policies to improve, update, and simplify the
Community Development Property Rehabilitation Loan Program. If approved, this will replace the
current City of Bangor Community Development Property Rehabilitation Loan Program Policies and
Procedures to align the City's guidelines with Housing and Urban Development requirements and
make process improvements. Many of the changes were minor, but some notable policy changes
include: removing a requirement that applicants with a credit score under 620 have a co-signer with
a credit score above 680; no longer making investment loans on mobile homes (mobile homes
remain eligible for owner occupied loans); requiring that investor loan applicants demonstrate
previous rehabilitation history; and extending the time line for investment property rehabilitation
work to be completed from 6 months to 12 months. The changes will make the program more
accessible to low-moderate income families and ensure a good likelihood of success on investment
projects.
Business & Economic Development Committee
04/02/2019
Recommend for passage
41
New Business
04/08/201919-147
CITY OF BANGOR ORDER
04/08/2019
19-147
Graham
Adopting the City of Bangor Community Development Residential Rehabilitation Loan Program Policies and
Procedures
WHEREAS, the City Council of the City of Bangor has previously approved and adopted a Community
Development Residential Rehabilitation Loan Program in 1982 and amended the same from time to time; and
WHEREAS, it is in the best interest of the City to improve, update and simplify the Community Development
Residential Rehabilitation Loan Program Policies and Procedures by making changes which align the City's
guidelines with Department of Housing and Urban Development (HUD) requirements:
Be it Ordered by the City Council of the City of Bangor that,
the City of Bangor Community Development Residential Rehabilitation Loan Program Policies and Procedures
dated April 2019 and on file with the City's Community & Economic Development Department is hereby
adopted for the City of Bangor hereby replacing the Community Development Residential Rehabilitation Loan
Program Policies and Procedures adopted by the City Council in 2017, Council Order 17-235.
CITY OF BANGOR
COMMUNITY DEVELOPMENT
RESIDENTIAL REHABILITATION
LOAN PROGRAM
POLICIES & PROCEDURES
APRIL 8, 2019
Adopted by Bangor City Council
Order Number:
Date: April 8, 2019
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Introduction
3
Program Goal
3
Part 1
Program Summary
1.1 Housing Rehabilitation Loan Program
3
1.2 Emergency Loan Program
5
Part 2
Definitions
5
Part 3
Program Administration
3.1 Purpose
7
3.2 Non -Discrimination
7
3.3 Loan Approval
7
3.4 Eligibility
A. General
7
B. Applicant Eligibility
8
C. Property Eligibility
8
D. Contractor Eligibility
9
3.5 Limitation of Loan Program
A. Loans per applicant
10
B. Loans per property
11
C. Maximum Loan Amounts
11
D. Matching Loan
11
E. Allowable Improvements
11
F. Unallowable Improvements
12
3.6 Application Process and Procedure
A. Application
12
B. CDD Responsibilities
12
C. Verifications
12
D. Inspections
13
E. Loan Review by BED Committee
13
F. Review Criteria
13
G. Loan Considerations
14
H. Terms and Conditions
15
I. Bid Process
15
J. Construction Contract
15
K. Labor Performed by Owner
15
L. Loan Closing
16
M. Amended Loans
16
N. Cancellation
16
O. Records
16
P. Escrowing of Funds
16
Q. Disbursement of Funds
17
R. Rent Regulatory Agreement
17
AppendixA — Gross Income Eligibility Guidelines
18
Appendix B — Fair Market Rents
19
Appendix C — Rehabilitation Agreement
20
RA
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Introduction
The City of Bangor's Community Development Division (CDD) offers a Residential Rehabilitation
Loan Program to property owners, both investors and owner -occupied, who are looking to
improve their buildings by creating safe, affordable, decent housing for low income residents.
The Residential Rehabilitation Loan Program is funded by the Community Development Block
Grant Program (CDBG) and is subject to all of the Community Development Program rules.
Program Goal
The goals of the program are as follows:
• to improve the quality of housing by eliminating substandard housing conditions;
• to upgrade properties to meet code requirements for existing buildings;
• for the rehabilitation and general home improvements of residential properties throughout
the City;
• to implement and encourage energy efficient improvements;
• to enhance the appearance of the entire city while preventing the decline and
deterioration of older neighborhoods;
• to assist property owners to rehabilitate properties in order to offer safe, decent and
affordable housing units;
• for the elimination of slum/blighted properties; and
• to assist homeowners with emergency repairs that threaten the life and safety of
occupants.
Part 1
Program Summary
1.1 HOUSING REHABILITATION LOAN PROGRAM
Purpose: To provide for the rehabilitation of residential structures and the residential
portion of a mixed use property in accordance with the City's building code
standards and HUD Housing Quality Standards (HQS).
Eligible Activity: Loans may be made only for work which is necessary to make the
residence safe. The rehabilitation tasks may include building exteriors,
upgrading building interiors, mechanical systems, energy efficiencies, ADA
compliance, removal of hazardous materials (lead paint and asbestos) and
structural repairs.
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Ineligible Activity: New construction, paving, furnishings, substantial reconstruction,
expansion of size or finishing unfinished areas (unless necessary to bring
property into code compliance), appliances not required by code and HQS,
areas of a nonresidential portion of a mixed use property, rehabilitation of
any dwelling units not occupied by or vacant units affordably available to
low and moderate income households.
Eligibility Criteria:
➢ The Applicant must own or have a written agreement to purchase the property to be improved
and have resided in the residence for a minimum of three months prior to the application
date.
➢ The property may be an owner -occupied or investor-owned year-round residential structure or
mixed use structure with a residential component.
➢ After completion, the property must comply with HUD's Housing Quality Standards and
applicable codes as determined by the Housing Rehabilitation Coordinator and City's Code
Enforcement Officer.
Applicant Eligibility:
➢ Single Family (one unit)
Owner -occupied: Owner's income must be at or below 80% of the median income for
Bangor as determined by HUD.
➢ Single -Family (2-7 units)
Owner -occupied: 51% of units must be occupied by tenants, including the owner's unit,
who are at or below 80% of the median income for Bangor as
determined by HUD.
➢ Investor/Non Profit: 51% of units must be occupied by tenants who are at or below
80% of the median income for Bangor as determined by HUD.
➢ Single Family (1-2 units)
Owner -occupied: Deferment is available to elderly, handicap or hardship applications.
Deferred Loan: Owner's income must be at or below 50% of the median income for
Bangor as determined by HUD to qualify. Loan funds will be repaid
with 3% interest. All funds will be recovered by the City upon sale
or transfer of property title.
Interest Rate/Terms:
➢ Owner Occupied (1-4 units)
3%
20 year maximum
➢ Owner Occupied (1-2 units)
Deferred Loan
3%
20 year maximum
➢ Non Profit
3%
10 year maximum
➢ Investor
Prime
20 year maximum
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The interest rates and terms can be changed or adjusted by the BED Committee as necessary
for feasibility and affordability.
Matching Funds: Investor applicants must provide or secure a matching amount from a
participating lending institution, owner equity and/or insurance company. This will be a 75/25 match
for all investor properties.
Maximum Loans:
➢ Single Family (one unit): $50,000 per single family owner -occupied house
➢ Multi -Unit Properties: $25,000 for the first unit and $20,000 for each additional unit
1.2 Emergency Loan Program:
Purpose: To provide immediate assistance to owner -occupied building (1-4) units for
emergency situations that present life safety issues
Eligible Activity: Life safety issues as determined by the City's electrical, building and
plumbing inspectors, water and sewer department and fire inspectors.
(Malfunctioning furnaces, water leaks etc.) Income may not exceed 80%
of median income levels established by HUD.
Interest Rate/Term:3% interest rate, 10 year maximum term
Matching Funds: None Required
Maximum Loan: $10,000.00
Part 2
Definitions
Deferred loan:
A loan with no monthly payments but upon the sale or transfer of the property, loan proceeds
plus interest will be due to the City. Interest shall be computed as if each full calendar year
consisted of 360 days and each full calendar month consisted of 30 days, for actual number of
days elapsed until the home is sold or twenty years, whichever is first. Deferred loans shall not
be made on mobile homes.
Fair Market Rent:
An annually published rent level prescribed by the US Department of Housing and Urban
Development based on a specified number of bedrooms.
Household Income:
A. For the purpose of computing income to determine eligibility, Community Development staff
will calculate income by estimating the annual income of a family or household by projecting
the prevailing rate of income of each person at the time of assistance is requested. Estimated
annual income shall include income from all family or household members.
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B. A household shall be defined as all persons who occupy a housing unit. The occupants may
be a single family, one person living alone, two or more families living together or any other
group of related or unrelated persons who share living arrangements.
1. Exception — An exception to calculating household income will be for boarders of the
applicant. A boarder is an adult who pays the market rate to rent a room and shares
kitchen facilities with the applicant. The applicant must produce verification of rental
income such as canceled checks and rental income on a federal income tax form. The
gross income of the boarder will not be included in calculating the applicant's household
income. Instead, staff will add to household income the amount of rent paid by the
boarder or the HUD Fair Market Rent for a 0 bedroom unit, whichever is greater. The
boarder will not be counted as a household member when calculating family size.
C. Income of all adult members of the household is considered for computing total household
income. This may include wages, salaries, overtime, bonuses, fees, tips, commissions,
interest and dividend income, net rental income, child support, alimony, Social Security
benefits, SSI retirement, pension or annuity, TANF, unemployment benefits, worker's
compensation and disability or benefits from any source.
Investor:
An absentee owner who may receive rehabilitation assistance in order to improve housing
conditions for low/moderate income tenants.
Mixed -Use:
A property used in some part for residential purposes and in some part for non-residential
purposes.
Owner -Occupied:
An applicant who holds the entire ownership interest of a property and lives in one unit of the
property as a primary residence.
Rehabilitation Costs:
The total of contractor estimates from eligible contractors, self-help expenses and the
contingency determined to be reasonable by the Housing Rehabilitation Coordinator.
Residential Property:
A property used entirely for residential purposes (household living space).
Single -Family Property:
A property which has one residential unit.
BED Committee:
City of Bangor's Business & Economic Development Committee.
11
Part 3
Program Administration
3.1 Purpose:
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The purpose of these loan programs is to provide permanent financing loans in conjunction with
other Federal, State and/or City Programs or other lending institutions. The total investment of
City funds cannot exceed 75% of the project cost for any investor property or the maximum loan
amount described in Section 3.5 (C) (1).
The above is contingent upon approved rehabilitation activities being completed in accordance
with applicable municipal and HUD codes.
No monies will be disbursed to reimburse the borrower for improvements made to the property
which were not approved by the CDD. No monies will be disbursed to pay for the labor of the
borrower or any member of the borrower's family in performance of the above mentioned Eligible
Activities.
Prior to loan closing, the borrower and any outside participating lenders are required by the City
to enter into an agreement to permit disbursement upon certification by the City that the work for
which payment is requested has been performed in accordance with the terms of the loan.
3.2 Non -Discrimination:
The City of Bangor prohibits discrimination. No person shall on the ground of race, color, national
origin, sex, age, religion, familial status, physical or mental disability be excluded from
participation in, be denied the benefits of or subjected to discrimination under this program.
3.3 Loan Aaaroval:
Approval of the loan will be contingent upon
a. the BED Committee's affirmative vote;
b. the applicant's ability to secure and/or provide a matching source from an institutional
lender, owner financing, owner equity, insurance company and/or any other form
acceptable by CDD, if an investor property;
c. the applicant having good credit and demonstrating the ability to repay the loan;
d. an agreement to repay the interest bearing loan; and
e. verification that all property taxes, water/sewer fees and all other city assessments are
paid.
3.4 Eligibility:
A. General:
A loan will be made for the rehabilitation of eligible activities as outlined within these guidelines.
In order to qualify for a loan, both the applicant and the property to be assisted must meet the
minimum eligibility criteria as set forth in these guidelines.
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Mixed use properties are eligible if the square footage of the residential portion encompasses 51% or
more of the total building square footage. However, only exterior portions of the building and those
portions which are used for residential purposes are eligible for improvements.
The loan programs are funded through the Community Development Block Grant (CDBG)
Program. Because of this, projects must meet the CDBG objectives of benefitting low/moderate
income persons or the prevention and/or elimination of slum and blight or increasing handicap
access.
B. Applicant Eligibility:
To qualify for a loan an applicant must:
1. provide proof of ownership of the property;
2. have lived in the property for six (6) months prior to application date;
3. meet income eligibility guidelines (Appendix A);
4. have paid in full all City property taxes, water/sewer fees, and /or any other assessed fees;
5. provide or secure a matching amount in part or total from a participating lending institution,
owner financing, owner equity and/or insurance company, if an investor property;
6. be willing to rehabilitate the property in accordance with the City Building Codes and HUD
Housing Quality Standards;
7. be willing to allow a Code Inspection in all properties owned by applicant which are located in
the City of Bangor;
8. be willing to enter a work agreement with the Code Department for any violations found during
Inspection(s) referenced in Number 8, prior to loan approval;
9. be willing to have the property inspected by a Licensed Lead Inspector and to comply with
the Lead Paint regulations in properties built prior to 1978;
10. submit plans (i.e. floor, electrical, plumbing etc.) as requested by CDD;
11. provide personal and business tax returns and personal financial information to determine
financial capacity as deemed necessary by CDD; and,
12. not be, nor any member of their family be: (1) an elected City official; (2) Director of any
municipal department; (3) an employee of the City's Community and Economic Development
Department; (4) a member of the BED Committee, City's Finance Committee, Planning Board
or Board of Appeals; and
13. demonstrate a record of compliance with the city of Bangor's codes, ordinance and policies
and any other local, state or federal rules and regulation that apply. Isolated violations will not
be considered as a failure if addressed in a cooperative manner.
C. Property Eligibility:
1. The property to be assisted must be located in the City of Bangor.
2. The funds must be used to correct code violations(s) as prescribed by City's Code
Enforcement Officer; investors who own more than one property must agree to a code
enforcement inspection for all their properties and will agree to maintain all buildings so that
they are free of code violations.
3. Emergency repairs are permissible upon determination by the City's Code Enforcement
Officer that a life safety issue is present and when property owners prove inability to complete
necessary repairs with owner financing and/or an ability to obtain a match from any eligible
lending source.
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4. If CDD determines that exterior rehabilitation is needed, it must be included in the project.
Peeling and chipping paint must be corrected and maintained.
5. Multi -unit housing (2 -7 units) that are improved with CDBG funds shall be available and
affordable to low/moderate income tenants and are to be determined in the following manner:
a) At the time of the loan application and after completion of the rehabilitation and for the
term of the loan, a minimum of fifty-one percent (51%) of the tenants residing in the
property must be at or below the low/moderate income limits set by HUD.
b) The Applicant will be required to furnish annual rental information to enable CDD staff to
evaluate the impact of the project on rent levels. The Applicant will submit the current
amount of rental charges for all units in the housing project, utility types, who pays the
utilities and the names of the tenants.
c) A rent cap shall apply to all units occupied by low/moderate income households. The
maximum allowable rent shall be equal to the amount of rent and utility costs being paid
by the tenant at the time of loan closing. The period of affordability shall be four years
after the loan closing date.
d) Vacant units at the time of application shall be rented to low/moderate income
households. The maximum allowable rent for vacant units shall not exceed the FMR in
effect when the rent is calculated with an adjustment for utility allowance based on Section
8 Existing Housing Allowances for Tenant Furnished Utilities and Other Services. The
period of affordability shall be four years from the loan closing date.
e) Monthly rental charges for each dwelling unit in the property, at the time of application
and/or the term of the loan must not exceed the maximum set by HUD. These figures are
based on Section 8 Fair Market Rents (Appendix B).
f) Rent cannot be raised for four years from the date the loan is closed unless the FMR for
the area is adjusted to reflect an increase in rents. If this occurs the property owner may
raise the rents to the newly adjusted FMR but no higher.
g) The borrower will sign a Rent Agreement stipulating rent limitations at loan closing.
6. Investment loans shall not be made on Mobile Homes.
7. Investment loan property shall be exempt from having to be previously owned and occupied
for six (6) months prior to application.
8. Investor applicant must show previous rehabilitation history.
D. Contractor Eligibility:
To be an eligible contractor the following standards apply:
Insurance — the contractor and all subcontractors shall carry Worker's Compensation
Insurance for all their employees in accordance with the Worker's Compensation laws of the
State of Maine. The contractor and subcontractors shall carry Manufacturer's and
Contractor's Public Liability Insurance with a minimum aggregate of one million dollars for
personal injury or death and for property damage with $500,000 for each occurrence. The
City of Bangor will be listed on all policies as a loss payee. The CDD may require bonding
for contracts in excess of $100,000. The CDD will require evidence of insurance prior to
signing a construction contract.
2. License and Qualifications — the contractor shall have in effect a license if required by the
City of Bangor or State of Maine. The contractor must have completed a Department of
Environmental Protection approved lead -smart renovator's course, if pertinent to the work
being performed.
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3. Credit — The City may require a list of credit references, names of suppliers, name of bank
where contractor does business and names and addresses of recent home improvement
customers.
4. Skill and Equipment — No approval of a contract shall be given unless the construction
contractor can satisfactorily demonstrate that he/she and/or their subcontractor(s) have the
necessary skills and equipment to perform the work in an efficient and expedient manner.
5. Ineligible Contractors — Where a contractor fails to comply with the eligibility standards set
forth above or commits one or more of the following violations, the CDD shall remove the
contractor from the list of eligible contractors and shall designate the contractor to be
ineligible. The applicant will not award any rehabilitation work, other services, materials,
equipment or supplies to be paid for, in whole or in part, with the proceeds of the loan to any
contractor or subcontractor whom the CDD has designated as ineligible. The CDD shall
designate a contractor to be ineligible if it finds that the contractor has:
a. Committed one or more material violations of its obligations under a rehabilitation contract
and has failed to cure all such violations promptly after 10 days written notice by the
applicant or the CDD
b. Engaged in a pattern of delayed performance or failed to complete the work under a
rehabilitation contract and has received written notice of such delay.
c. Failed to communicate in a courteous, prompt and professional manner and such failure
continued after written notice by the applicant or the CDD.
d. Committed fraud and other illegal acts against the applicant or the City of Bangor, including
but not limited to kickbacks and collusion.
e. Failed to pay subcontractors or suppliers on a timely basis, allowed a lien to be placed on
the applicant's property, or otherwise failed to maintain good credit, and such failure
continued after written notice by the applicant or the CDD.
f. Threatened, intimidated or harassed the applicant or City staff.
Once the CDD has designated a contractor to be ineligible, the Contactor shall remain ineligible
for a minimum of two years and shall remain ineligible thereafter until the CDD determines, in its
sole discretion, that the contractor has taken all necessary steps to ensure that no further
violation will occur, provided that in the case of violations of 5(d) or 5(f) above the Contractor
shall remain permanently ineligible.
3.5 Limitations of Loan Program:
A. Loans per applicant:
No more than one loan* will be processed at one time on behalf of an applicant in which the
same individual(s) or corporation has a substantial interest. For the purpose of this section, loan
processing will be considered complete when an application is disapproved or when a project is
financed by a properly completed application in accordance with these guidelines.
*The BED Committee reserves the right to review simultaneous multiple properties owned by any
one property owner or corporation in which the same individual(s) has a substantial interest. If
there are presented economic reasons to justify joint bidding and development, these same
properties shall be eligible for the same bid.
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B. Loans per property:
The number of loans per property is not restricted, except that portions or components of
structures previously rehabilitated are ineligible for assistance.
C. Maximum loan amounts:
The maximum loan for rehabilitation projects involving either interior or exterior rehabilitation will
be established in the following manner:
1. The least amount which does not exceed:
a. Actual cost of rehabilitation;
b. Amount when added to any outstanding indebtedness related to the property, creates
a total outstanding indebtedness which does not exceed 95% of the sum of the as -is
value of the property and 50% of estimated rehabilitation costs up to and including
$25,000, 90% of the next $10,000 and 80% of any balance of the sum that exceeds
$35,000; and
c. The applicant's ability to repay.
2. If the property contains a mixture of residential units and non-residential space, the maximum
allowed for the residential units will be determined according to the number of 1 and 2
bedroom units and the limits as identified below. The match requirement is 25% of the total
project cost.
3. If the project involves the rehabilitation of an owner occupied single family building or
structure, the maximum loan amount will be $50,000.
4. For projects that are multi -family (2-7 units) the maximum loan is $25,000 for the first unit and
$20,000 for each additional unit. The match requirement is 25% of the total project cost, for
occupied properties and for investor properties.
5. The matching amount of any investor owned loan must be secured from an institutional
lender, owner financing, owner equity or insurance company. Other sources of matching
funds are eligible upon acceptance for the CDD staff.
D. Matching Loan:
Residential Rehabilitation Loans made to investors of multi unit properties or mixed use
properties must be matched by an amount of monies secured from a lending institution,
insurance company, owner financing, home equity and/or sweat equity that is acceptable by the
CDD staff. The matching percentages for RR loans will be 75/25.
Emergency Loans do not require a match.
E. Allowable Improvements:
Allowable improvements are defined as basic and necessary items that improve the basic
livability, safety, or utility of the residence. Any violations of state, federal or local codes relating
to minimum standards for residential housing must be corrected. Examples of allowable
improvements include:
1. Repair or replacement of inadequate heating, electrical or plumbing systems.
2. Insulation, paint, siding, roofing, floors, ceilings, walls and windows.
3. Removal of asbestos, lead paint or other hazardous substances.
4. Accessibility improvements.
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5. Improvements to an existing attached garage if the improvements substantially improve
the basic livability or energy efficiency of the residential structure.
6. Energy improvements.
F. Unallowable improvements:
These improvements are defined as any unnecessary cosmetic repairs, luxury items or purchase
of fixtures that are not permanently affixed to the property. Examples are but not limited to:
1. Appliances not included in HUD Housing Quality Standards, furniture or other personal
items
2. New construction of decks, patios, sheds or other out buildings
3. Improvements to detached garages or other detached structures
4. Fences
5. Fireplaces, generators, heating fuel
6. Hot tubs, whirlpool baths or saunas
7. Landscaping
3.6 Application Process and Procedures
A. Applications:
Application forms for the Residential Rehabilitation Loans are available from the Community
Development Division, Second Floor, 73 Harlow Street, Bangor, ME. Completed applications
are to be submitted to the Community Development Division (CDD) for processing.
Applications shall be processed on a first-come, first-served basis. Except Emergency Loan
Applications which will have priority over other rehab applications. Community Development
staff shall use the receipt date of a complete application to establish the order of priority.
B. CDD Responsibilities:
The City will make available the services of the Rehabilitation Coordinator who will solicit
applications, document eligibility criteria and underwriting, determine the scope of work, prepare
job specifications, obtain contractor bids secure approval, prepare loan documents and act as a
project manager including authorizing progress payments and inspections.
C. Verifications:
1. Income - copies of all income sources (i.e. check stubs, statements, W-2 forms and State
and Federal Income tax returns) shall be provided by the applicant. A certified financial
statement or other documentation from an accountant or other acceptable source may be
required of a corporation, partnership or other business enterprise. Written verification
may be required from income sources.
2. Title — The CDD shall verify title by checking the records at the Penobscot County
Registry of Deeds.
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D. Inspections:
1. Initial Inspection — If it appears that the applicant and property are eligible for a loan, an
initial inspection will be scheduled with the applicant and the Rehab Coordinator.
Rehabilitation requirements will be determined during the initial inspection.
2. Inspection Report and Specifications — An inspection report shall be prepared by the
Rehab Coordinator and mailed to the applicant. The inspection report shall list the
rehabilitation requirements to bring it into compliance. Once the owner has reviewed the
inspection report, the Rehab Coordinator creates technical specifications for contractor
bidding.
3. Lead — The CDD must consider whether the rehabilitation calls for lead hazard control
measures. All homes built prior to 1978 will be addressed by HUD's Lead Safety for
renovation, repair and painting. Clearance testing of the construction area will be
performed to confirm the absence of lead hazards after the work is completed. The
Contractor, Owner and Rehab Coordinator will work closely to minimize the need to
displace occupants of a dwelling unit as well as ensure no residents of the property are
affected by lead hazards
4. The CDD shall have the right to inspect all rehabilitation work financed in whole or in part
with the proceeds of the loan. The CDD will inform the owner and/or contractor of any
noncompliance with respect to the rehabilitation work and the corrective action needed.
The CDD will verify that all work has been done according to the specifications. No
payment shall be made until the work is acceptable. The owner will take all steps
necessary to assure that the CDD is permitted to examine and inspect the rehabilitation
work.
E. Loan Review by Business & Economic Development (BED) Committee:
After review, verifications and eligibility determination are completed by the CDD staff; qualifying
loans will be presented for review to the BED Committee. The BED Committee will be
responsible for approving or denying the loan request. The actions of the Committee shall be
governed by the following:
A majority of the committee's members must be present to constitute a quorum. At least
(3) votes on the prevailing side are required to constitute a valid vote on any loan
application.
2. Final Committee approval of loans for rehabilitation will be contingent upon any matching
requirements imposed on the applicant.
3. The BED Committee has the authority to adjust the terms, rates and the match
requirement ratios in order to make the loan meet national objectives and/or affordability.
F. Review Criteria:
The BED Committee will review all completed qualifying applications for assistance for the
Residential Rehabilitation Loan Program to assess the affordability and feasibility of rehabilitation
projects and that the National Objectives are met as follows:
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1. Ensuring that the applicant is at/or below eighty percent (80%) of median income
guidelines established by HUD;
2. That at the time of the application, a minimum of fifty-one percent (51%) of the tenants
that reside within the structure are at or below the low/moderate income limits set by
HUD;
3. That eighty percent (80%) of all loans are for low/moderate income households;
4. That any deferred loans are being made to applicants at/or below fifty percent of Area
Median Income (50% AMI); and
5. Elimination of slum/blight properties.
G. Loan Considerations:
In approving or denying loan requests, the BED Committee shall be guided by the following
loan considerations:
1. Underwriting for Owner Occupied Loans:
i. Cash Flow — ability to repay the debt;
ii. Credit — good credit history and reputation;
iii. Payment of taxes and all other City assessments;
iv. Collateral — Collateral coverage must be adequate as determined by the BED
Committee;
v. Security — other assets;
vi. Commitment of matching funds.
2. Underwriting for Investor Loans:
The rental property to be rehabilitated under this program must be financially solvent, based
on the standard market criteria, without requiring further infusion of public funds. Therefore,
the after -rehabilitation rent revenues must be sufficient to support all operating costs, debt
service, and reserve accounts, without unduly increasing rent rates, or securing additional
public subsidy. To this effect, a complete pro -forma analysis shall be completed for each
project. In addition of the program application, an applicant will be required to provide
documentation for the following:
• Proof of ownership
• Annual insurance costs
• Annual property tax amount
• Mortgage payment schedule for all existing loans with proof all are current
• Annual utility costs
• Current appraised value
• Recent financial statement
• Recent income statement
• Demonstrated previous rehabilitation work.
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The loan underwriting pro -forma analysis will also include a vacancy factor (5-10%), property
maintenance costs (8-10%), property management expenses (3-10%), a reserve for
replacement (3% minimum) and owner's return on investment (5-15%). The project pro -
forma analysis must clearly exhibit uncommitted funds sufficient to fully support the total
rehabilitation cost. All operating expenses are to be included in the pro -forma analysis.
3. Assessment of Private/Public Benefit
The BED Committee will also consider the broader implication of private and public
benefits.
H. Terms and Conditions:
The Terms and Conditions of the Residential Rehabilitation Loan Program are set forth in the
"Rehabilitation Agreement" (see Appendix C). It provides the applicant with an understanding of
all requirements by which the applicant must comply to secure and maintain a rehabilitation loan.
1. Bid Process:
The CDD staff shall obtain a minimum of three (3) proposals for the rehabilitation work. Bids
shall be obtained from qualified, eligible general contractors. Contractors will provide a detailed
cost breakdown on each portion of the work being bid. The CDD may require that information
pertinent to materials be submitted for approval.
The bids are presented to the applicant and the applicant chooses the proposal of their choice.
The applicant is not bound to contract with the lowest qualified bidder; however, in the event of
choosing a higher bid the applicant must provide private funding for the difference in
cost.
J. Construction Contract:
The owner and contractor will sign a contract at the time of loan closing which is acceptable to
the CDD. Assurance will be required of the contractor and owner that the rehabilitation work will
be carried out efficiently and within a reasonable period of time. The contactor shall secure all
necessary permits prior to the start of work at their own expense. No change to the rehabilitation
contract work shall be allowed unless approved by the CDD, owner and contractor. Any
changes involving cost will be supported through the execution of a change order between the
contractor and owner.
K. Labor Performed by the Owner:
A property owner may complete some or all of the tasks required to rehabilitate his/her property if
he/she has the degree of skill required to perform the work involved. Self-help is usually
appropriate for the accomplishment of tasks of an unskilled nature such as general clean up,
demolition, cartage and disposal of debris and for work that involved minimal use of costly
materials and equipment.
a. Materials and Workmanship — The CDD will require information regarding the cost
of materials for any self-help work prior to approval of the loan. The CDD may
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require evidence of workmanship on previous projects before accepting the
owner's intentions to do his/her own work. The amount of the loan may include
funds to pay for the materials and rental of equipment to be installed by self-help.
b. Schedule — The Rehab Coordinator and owner will establish a schedule of work
items and projected completion date prior to loan closing.
c. Qualification — The owner must have completed a Department of Environmental
Protection approved lead -smart renovator's course, if pertinent to the work being
performed.
L. Loan Closing:
A loan closing shall be completed prior to contractors starting work and shall include, but not be
limited to a mortgage instrument to be recorded at the Penobscot Registry of Deeds, and a
promissory note in the full amount of the City's loan.
M. Amended Loans:
If unforeseen project costs exceed the original rehabilitation estimates plus any project
contingency, the CDD may increase the loan by $2000 without approval of the BED committee.
N. Cancellation:
A loan approval shall be valid for six (6) months. If there has been no loan closing or
commencement of work, it will be necessary for such a loan to be reconsidered by the BED
committee with new current financial information and application.
O. Records:
The applicant agrees to keep such records as may be required by the CDD with respect to the
rehabilitation work financed in whole or in part by the loan and, furthermore, when the
rehabilitated property contains rental units, the applicant agrees to keep such records as may be
needed by the CDD with respect to the income received and expenses incurred from this
property. The applicant will, at any time during normal business hours, and as often as the CDD
may deem necessary, permit the CDD to have full and free access to its records with respect to
the property.
P. Escrowing of Funds:
The CDD will act as an escrow agent for the City loan, as well as any supplemental funds
required to meet the amount of the construction contracts. The owner permits the CDD to
disburse such funds to the contractor and/or the vendor in the manner set forth in the contract
between the applicant and the contractor. The CDD may require lien waivers as a condition of
payment.
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Q. Disbursement of Funds:
After receiving appropriate invoices and inspecting the rehabilitation work, progress payments
shall be authorized by the CDD. Unutilized funds may be applied to reduce the principal and
interest of the City and private funds to maintain the 75% City and 25 % private participation.
R. Rent Regulatory Agreement:
In structures containing rental units not receiving HUD Section 8 rental assistance, the borrower
must enter into a Rent Regulatory Agreement pertaining to those units assisted under the
program. The Rent Regulatory Agreement assures the low/moderate income tenant an
affordable rent for a period of four years, thus avoiding displacement due to the cost of property
improvements. Following are some key provisions of the Agreement:
1. The unit rent shall not increase for one year after loan closing.
2. After the first year an annual increase of a maximum of 5% of the monthly contract rent is
permitted. Then, in addition to the 5% increase, rents may be increased for the following
reasons:
a. Additional debt service incurred as a result of improvements to the property, and
b. Increases in property taxes and owner -paid utility costs.
Any increase in rent for (a) or (b) above shall be pro -rated between all of the units.
The Rent Regulatory Agreement is meant to prevent tenants from having to move due to
excessive rent increases, but allows reasonable increases for the owners to recover their
operating costs. The Fair Market Rents as published in the Federal Register by HUD for the
Bangor area are used as rental comparisons. The owners retain all other rights under Maine law
pertaining to landlord/tenant relations. This Rent Regulatory Agreement is effective for four
years.
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APPENDIX A
GROSS INCOME ELIGIBILITY GUIDELINES
Low and Moderate Income Limits
Effective: 04.08.2019
# of Persons in Unit
RR Loan
(80%)*
RR Deferred Loan
(50%)--
1
$39,350
$24,600
2
$44,950
$28,100
3
$50,500
$31,600
4
$56,150
$35,100
5
$60,650
$37,950
6
$65,150
$40,750
7
$69,650
$43,550
8
$74,150
$46,350
These amounts are updated and changed annually by HUD.
* owners and tenants (low income)
** owner occupied dwellings only, 2 units or less (very low income)
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APPENDIX B
FAIR MARKET RENTS
Effective 04.08.2019
Efficiency (Zero BR)
$690
One Bedroom
$784
Two Bedroom
$996
Three Bedroom
$1248
Four Bedroom
$1749
Five Bedroom
$2011
Six Bedroom
$2274
Seven Bedroom
$2536
These amounts are updated and changed annually by HUD.
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APPENDIX C
RESIDENTIAL REHABILITATION LOAN PROGRAM
REHABILITATION AGREEMENT
(This signed form must accompany the loan application)
The applicant must agree to these Terms and Conditions in order to obtain a rehabilitation loan.
These terms and conditions will be incorporated into the mortgage and/or other security
instruments and the Promissory Note.
A. General
By program rule, the City is required to authorize only that work which is necessary to make
your home safe. This is not a program that remodels homes for things that would be nice to have
but are not necessary.
The documents containing all specific terms and conditions which an applicant must sign in order
to close a Residential Rehabilitation Loan are the following: Rehabilitation Agreement — Terms
and Conditions, Promissory Note and Mortgage or other security instrument.
The City of Bangor views the documents executed at the loan closing as a contractual
agreement between the Borrower and the City. To fulfill this agreement, the Borrower must:
1. Complete within six (6) months all rehabilitation work as described in the loan application
submitted by the applicant and approved by the Business & Economic Development (BED)
Committee.
2. Repay in full and in the manner prescribed, all loan money disbursed to the borrower by the
City of Bangor through the RR Loan Program.
3. The borrower accepts ultimate responsibility for fulfillment of this agreement and further
agrees that:
a. To furnish information on personal income and expenses for purposes of processing the
loan, rent regulatory inspections and for any other necessary purposes associated with
the loan;
b. To use the property as principal residence or rent to LMI (low to moderate income)
tenants if investment property (a minimum of 51 % of tenants must be LMI);
c. All property taxes are paid up to date and no liens are placed on the property;
d. No rehab work will be started until the Rehab Coordinator notifies them that work can
begin. Any work started prior to notification will not be reimbursed;
e. If any assistance provided is with deferred loan funds, they will be required to occupy the
property. If the property is sold or transferred, the balance of the loan will be payable in
full;
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f. If assistance is provided to rehabilitate a multi -family property there will be restrictions on
rent levels and tenant incomes;
g. If any tenant has to be relocated as a result of rehabilitation, the tenant will be provided a
90 -day notice prior to a moving date;
h. Other verbal agreements or written contracts entered into for the completion of any
rehabilitation activity is made solely between the Borrower and the respective contractor
and/or supplier; and
i. To hold harmless the City of Bangor and its agents from any and all disputes or claims of
any nature for damages which may arise from the performance of any rehabilitation
activity.
4. Investment property rehabilitation work shall be completed within 12 months from the loan
closing date.
B. Project Loan Note
At the time of loan closing, the applicant will be required to execute a promissory note and a
mortgage for the full amount of the Rehabilitation Loan. From this point on, the applicant will
be known as the "Borrower". The note or mortgage will provide for payment of the loan
according to a repayment schedule. It will establish the time and place for delivery of
payments, the amount, the maturity date, and it will provide for any loan security or additional
stipulations.
C. Loan Cancellation Provisions
The City of Bangor, at its option, reserves the right to make due and payable the borrower's
entire indebtedness if, after 60 days from the date of execution of the note, the Borrower has
failed or refuses to commence rehabilitation improvement activities. Further, the City, at its
option, may make due and payable the Borrower's entire indebtedness if after six (6) months
(commencing on the date of the loan closing) the owner has not fully completed the
rehabilitation activities. Other loan cancellation or acceleration provisions are contained in the
Promissory Note.
D. Terms and Interest Rate
All permanent financing will carry a maximum term and interest rate for the full term of the
note, except those conditions outlined in Section E below "Interest Penalty" as follows:
➢ Housing Rehabilitation Loans
0 owner occupied (1-7) units 3% 20 years
o Owner occupied (1-2)units deferred 3% 20 years
o Non Profit 3% 10years
o Investor Prime at time of loan closing 20 years
➢ Emergency Loans
o Owner occupied (1-7) units 3% 10 years
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Interest will begin accruing on a daily basis upon the first disbursement; Interest rates for any
matching portion of the loan will be individually negotiated between the loan applicant and
the respective lending institution providing the match. Terms and Interest Rates may be set
and/or waived by the BED committee.
The interest rate for loans for the rehabilitation of investor owned properties will be fixed at
the Federal Home Loan Bank of Boston rate at the time of the loan closing. The Business
and Economic Development Committee has the authority to adjust the terms, rates and the
match requirements if needed to make a project financially feasible.
E. Loan payments, Late Charges and Interest Penalties
Repayment of a loan is a legal responsibility. If you receive an amortizing loan you will be
required to make regular monthly payments. If you receive a deferred loan there will be no
monthly payments. However, you will be obligated to pay the loan back with 3% interest
should you sell or transfer the home.
Loan payments are payable to the Department of Community Development, without late
charge, from the first to the tenth day of the each month. The Borrower's first payment will be
due no more than 45 days after loan closing. Payments made on or after the eleventh day of
the month are considered delinquent and subject to the application of a late charge of five
percent (5%) of the Borrower's monthly loan payment. If you have any questions concerning
your monthly payment you should contact the City.
The Borrower's failure to make any monthly payment in full within thirty (30) days of the date
when due, or the borrower's failure to make full payment of any late charge or interest
penalty within thirty (30) days of the date assessed, shall constitute a default. Failure to make
loan payments will put you at risk of foreclosure. Delinquent status of loans will be reported to
major credit bureaus.
F. Loan Default
The entire principal balance and all accrued interest shall become immediately due and
payable without notice or demand upon the foregoing events:
The Borrower's failure to make any monthly payment in full within 30 days of the date
when due, or the borrower's failure to make full payment of any late charge or interest
penalty within 29 days of the date assessed, shall constitute a default;
2. The commencement of any proceedings by or against the developer under any
bankruptcy or insolvency laws;
3. The dissolution of, insolvency of, appointment of a receiver for, or assignment for the
benefit of creditors of any property of, the developer;
4. Loss of, substantial damage to, destruction of, sale of, encumbrance upon (whether first
or second position to this note and the mortgage securing this note), seizure of, levy
against, attachment of, failure to pay any property taxes or other city utilities or insurance
premiums on the project property;
5. Failure to maintain affordable rental charges, as required in Appendix B.
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The applicant shall also be in default upon a determination by the Director of Community
Development that the application has violated any part of the terms and conditions under
which rehabilitation loans are made, and/or the rent regulatory agreement (if applicable).
G. Security
Rehabilitation Loans will require an acceptable security instrument. The cost of preparation
and registration of the security document will be the borrower's responsibility to bear and will
be payable to the city at the time of the loan closing.
H. Inspection
A Borrower agrees to permit inspection of the property, rehabilitation work and all contract
agreements, materials, equipment, payrolls, and conditions of employment pertaining to the
rehabilitation project by the City's Community Development Department and/or Code
Enforcement personnel as deemed necessary for the residential rehabilitation loan program.
Municipal Codes and Conditions
The Borrower agrees to follow the procedures and conditions of all established and
applicable municipal ordinances in the physical rehabilitation and maintenance of improved
property. Work not meeting minimum standards and procedures established by code is
unacceptable for disbursement of any loan funds. The Borrower agrees to code enforcement
inspections for other properties owned by borrower located in the City of Bangor and to
correct, if any, all code violations that may be reported.
J. Disbursement of Rehabilitation Loan funds
Disbursement of all Rehabilitation Loan funds is made to the Borrower and the contracted
contractor upon request submitted to the City's CDD. Invoices received by the end of the day
on Friday, will be processed for payment and the disbursement shall be available no later
than the following Friday.
Repayment of the loan will begin 90 days after the loan closing.
The above is contingent upon approved rehabilitation activities being completed according to
applicable municipal codes. No money will be disbursed to reimburse the Borrower for
improvements made to the property which were not approved by the Rehab Coordinator
before they were commenced. Prior to loan closing, the Borrower and the participating lender
(if applicable) are required to enter into an agreement to escrow all participating lender loan
funds and to permit disbursement only upon certification by the City that the work and
materials for which payment is requested has been performed and verified by the Rehab
Coordinator in accordance with the terms of the loan.
In the case of owner cash contribution, prior to loan closing, the Borrower and the City are
required to enter into an agreement to escrow all applicant cash contributions and to permit
disbursement only upon certification by the City that the work and materials for which
payment is requested has been performed and verified in accordance with the terms of the
loan.
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K. Use of funds
The funds must be used to carry out only approved rehabilitation activities. Any rehabilitation
loan funds not expended upon completion of the approved rehabilitation activity must be
returned to the City as a loan repayment to reduce principle and interest amount. This will
NOT affect your interest rate or monthly payment. It may shorten the loan term only as well
as the final pay off date.
L. Prepayment of Note
The Borrower may prepay any or all outstanding principal to the City at any time without
penalty.
M. Transfer of Improved Property
Ownership or control of a property improved with rehabilitation loan funds cannot be
transferred in any manner to another individual, partnership or corporation until the entire
amount of the outstanding loan balance is repaid, in full, to the City.
N. Insurance
The Borrower is required to maintain hazard insurance on the improved property for the full
term of the note and for an amount equal to the total value of all mortgages held on the
property. Prior to disbursement of rehabilitation loan funds, the City shall be listed as a loss
payee on the policy for the property.
O. Records
The Borrower agrees to keep such records as may be required by the City of Bangor with
respect to the rehabilitation activities.
P. Contractor Minimum Standards
You must select a contractor from the City of Bangor's pre -qualified pool of contractors. This
list can be provided to you. If you know of a contractor you would like to use for your project,
that contractor may apply to become pre -qualified for the program and will have an
opportunity to bid on the project if approved.
A pre -qualified contractor has demonstrated proof of workers compensation and liability
insurance, lead paint certification, established trade credit, references, assurances that the
company does not appear on a state or federal debarred list, knowledge of local codes and a
willingness to sign and adhere to the Attorney General's standard construction contract. The
City does not guarantee the work of the contractor, the contractor does.
The CDD will write the job specifications, send the project to bid and review the bids with you.
There will be a minimum of three bids from pre -qualified contractors. If you choose a
contractor whose bid is higher than another, you will be responsible for paying the
difference between the lowest qualified bid and the bid you chose. Those funds will
be required at the loan closing to be deposited into the escrow account.
Q. Contracts, Permits and Licensed Technicians
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The State of Maine requires many trade persons to be licensed. Common examples include
plumbers, electrician and HVAC technicians. Contractors that disturb painted surfaces in
pre -1978 homes must be trained as Lead -Smart Renovators. The contractor must provide
proof of any required licensing or training. Verify that the contractor has obtained building
permits to do the work. Some types of rehabilitation do not require permits. Building permits
must be displayed at the job site and copies will be kept by the City.
The City requires the use of a standard construction contract based on the Maine Attorney
General's model contract for home construction and repair. The City will provide the contract
to you.
R. Lead Safe Practices
The City of Bangor is required to assure that rehab work is performed using lead safe
practices. Before obtaining a rehabilitation loan, homeowners with homes build prior to 1978
will need to agree to a lead paint assessment. This may delay work under your rehabilitation
loan.
If children under the age of 6 are present, temporary relocation may be necessary to perform
the work. You may be required to temporarily move from your home. If lead based paint is
found or presumed to be present, various measures will be performed. Grant funds may be
available to assist you with relocation expenses.
S. Points of agreement with respect to Federal, State and Local Regulations
The Borrower further agrees to abide by all terms and conditions of Federal Regulations,
including:
1. Federal Labor Standards: The Borrower must abide by established minimum wage rates
(Davis Bacon Act as supplemented by Department of Labor regulations) contained in
entitlement grant regulations for all commercial construction contracts awarded in excess
of two thousand ($2,000) dollars. This also applies to residential properties with more
than eight (8) units.
2. Lead -Based Pain Hazards: Any rehabilitation loans made by the City of Bangor shall be
subject to the current federal regulations contained in entitlement grant regulations 24
CFR Part 35 provisions providing for the elimination of lead-based pain hazards.
3. Fair Housing Act: The Borrower must not discriminate upon the basis of race, color,
creed, or national origin in the sale, lease, rental or occupancy of an improved property
and will comply with the Fair Housing Act of 1968 as amended.
4. Flood Hazard Insurance: If the property to be improved is located in a designated flood
hazard area, the applicant is required to carry flood plain insurance in accordance with
the National Insurance Act of 1968 (as amended) and abide by the regulation of the
Flood disaster Protection Act of 1973 as contained in Entitlement Grant Regulations 24
CFR 570.605.
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5. Civil Rights Act of 1964: The Borrower must not discriminate upon the basis of race,
color, creed, or national origin in the sale, lease, rental or occupancy of an improved
property and will comply with Title VI of the Civil Rights Act of 1964 and Title BIII of the
Civil Rights Act of 1968 and Section 109 of the Housing and Community Development
Act of 1974, and in accordance therewith, no person in the United States shall, on the
ground of race, color, national origin, religion, age or sex be excluded from participation
in, be denied the benefits, or be subjected to discrimination under, any program of activity
funded in whole or in part with the Community Development funds or any other federal
financial assistance. The operating agency will immediately take any measure necessary
to effectuate this agreement.
6. Interest of Certain Federal officials: No member of or Delegate to the congress of the
United States, and no Federal Housing Commissioner shall be admitted to share any part
of this Program or any benefit to arise from the same.
7. Interest of Members, Officers, or Employees or Operating Agency, Members of Local
Governing Body or Other Public Officials: No member, officer or employee of the
Department of Community and Economic Development (planning, community
development, economic development or code enforcement) or its agents or assignees,
no municipal officer of the City and not other members of any board or commission,
elected or appointed official of Bangor or employee of the City of Bangor, who exercises
any decisions -making functions or responsibilities regarding the Community Development
Program, shall have any direct or indirect pecuniary interest in any contract subcontract
or the proceeds thereof for work to be performed in connection with the program assisted
under this agreement.
8. Bonus, Commission or Fee: The Borrower cannot pay any bonus, commission or fee for
the purpose of obtaining the City of Bangor's approval of the loan application, or any
other approval or concurrence required by the City of Bangor or its designee to complete
the rehabilitation work, financed in whole or in part with the rehabilitation loan.
T. Resolution of Disputes
The City uses a standard procedure for resolving disputes between the homeowner and the
contractor, concerning the rehab of a home. The Rehab Coordinator is initially responsible
for resolving disputes. If a dispute arises concerning the provisions of the signed contract or
the performance by the parties, contact the Rehab Coordinator immediately and describe
your complaint. You must submit your complaint in writing. Failure to provide a written
complaint may result in no action on part of the City. If the Rehab Coordinator is unable to
resolve your dispute the following process will be initiated.
Notice of Dispute — Within five business days of becoming aware of a dispute that is not
resolved, the Rehab Coordinator will notify the parties of the dispute and send it to the
appropriate City agency.
Informal Conference — The Rehab Coordinator will set up an informal conference to be held
within fifteen days from the date the City becomes aware of the dispute. The Rehab
Coordinator will notify all parties of the date, time and place of the informal conference giving
reasonable consideration to the schedule of all parties and the severity of the dispute. If the
informal conference produces a resolution, the Rehab Coordinator will prepare a document
signed by all parties that plainly state the agreed upon resolution.
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Binding Arbitration — A construction escrow agreement among the contractor, the homeowner
and the City will contain a binding arbitration clause. If the informal conference does not
produce a resolution, the City will issue a document stating that no resolution was reached
and the parties will participate in a binding arbitration proceeding to be held as soon as
possible after the informal conference. Unless the City, homeowner and the contractor
otherwise agree, the arbitration shall be conducted in accordance with the construction
industry arbitration rules of the American Arbitration Association.
U. Rehab of Existing Homes is Not Always Easy
Existing homes, especially older ones, tend to settle or shift over time. Shifting overtime
causes windows, doors, ceiling walls and floors to not be as "square" or level as they were
when newly constructed. Homeowners should not expect that rehab will result in a perfectly
square, level or smooth result when the work is completed.
It can be stressful living in a home that is undergoing rehabilitation. The work can be noisy
and disruptive. Many contractor have a backlog of work, thus it may take several weeks to
complete the work on your home.
Use of utilities such as electricity will be required during the work. Homeowners may see an
increase in electric and heating bills during rehab. Utility bill are the responsibility of the
homeowner, not the contractor.
The homeowner is responsible for securing pictures on walls, items in cabinets or on shelves
that may fall when work is being conducted. Houses always need maintenance. It is a good
idea for the homeowner to save a little each month for future repairs and maintenance.
IF YOU DO NOT UNDERSTAND ALL OF THE INFORMATION IN THIS
DOCUMENT, PLEASE CONTACT THE CITY FOR CLARIFICATION BEFORE
SIGNING.
The undersigned certifies that they are in full agreement and will abide by these Terms and
Conditions as
set forth this day of 20
Applicant(s):
By:
By:
City of Bangor
By:
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