HomeMy WebLinkAbout1977-03-28 170 AE ORDER170 A8
Introduced by Councilor McHernan, sarcb 38, 1977
r CITY OF BANGOR
(TITLE.) @rbtr,---APRovLn& and- Adopting Community.. De,elopment Program -
Rehabilitation Grant
By the Oky CourwH of Us City ofBassvr.
TEAT. WHEREAS, the financing of rehabilitation of privately
owned properties throut�gh the use of direct grants is an eligible
activity for the use of grant assistance under Title I of the Housing
and Community Development Act of 1974;. and
WHEREAS, the City of Bangor, in its applications for funds
under Title I of the Housing and Community Development Act of 1974,
has requested and received as part of its Community Development
Program the sum of One Hundred. and Sixty Thousand Dollars ($160,000)
for the purposes of funding Property Rehabilitation Loans and Grants;
and
'WHEREAS the City of Bangor Community Development Program
Property Rehabilitation Grant Program has been developed which pro-
vides for the granting of money to rehabilitate privately owned
properties in Community Development Program project areas; and
WHEREAS, such grants will be limited to the amount necessary
to rehabilitate property to the requirements of the Housing, Building,
Electrical, Plumbing and. Fire Prevention Codes of the City of Bangor
and to the extent that the property, after rehabilitation, will be
n generally good and readily maintainable condition with the
necessary facilities in good working order.
NOW THEREFORE BY THE CITY COUNCIL OF THE CITY OF BANGOR BE
IT ORDERED, THAT the Community Development Program Property Rehabili-
tation Grant Program, a copy of which is on file with the City Clerk,
is hereby approved and adopted.
170 AN
IN CIW COUMIL
,jL4
'March 20, 1977
" A6 eried'. to Finance Ccmuttee,
p R D E R
-
cons $ext meeting.
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-
Title,CIw
e-
,.a
REC61
0
Approving s, Adcpt°.ng, ...
C TY OF
4"SOR
IN CTTx CONNCIL
CRY CLF..RF:
L : rFICE
April 11, 3.977
nrog. -ecop;, aeFa�ilitation, yvej�t, PX99r
Passed.
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.. °77 Iin9 24
PM 4 28
Introduced and filed by
CITY G
i vba .C'�,t�ckea
Councilman
CITY OF H OR
COM9I W OBVF.'IIJ T PRWG
MnIhTlAHILST ON GAPIVT MMM
CITY OF BANGOR
0®9d 117 DEVELOPMENT PROGAMI
PROPERTY RERAREMUTION GRANT PROGRAM
A. Introduction
This Plan establishes the policies and procedures of the City of Bangor
applicable to providing rehabilitation greats to rehabilitate privately owned
properties in Calm nity Development program project areae.
B. Funding and Administration
Great fonds will Be made available for approved property rehabilitation
work and to eligible low-income homeowners as part of neighborhood conservation
efforts] flmds designated for this purpose will be made available order the
Commusuty Development Block Grant program. The City of Bangor Community Develop-
ment Department will be responsible for the administration of the property Rehab111-
tatioa Grant Program in conformance with this Plan.
C. Eligibility Requirements
1. General A rehabilitation grant may be made only with respect to
residential or residential portion of a mixed-use property located
within designated Co®unity Development Program project areae. Tae
property must require rehabilitation to meet the requirmnente of the
housing Code of the City of Bangor. The applicant for a rebabilitation
grant moat own and reside in the structure to be rehabilitated, end
most have armed and resided in the property far a period of one year
prior to submitting an application. Me structure moat contain no
store than two dwelling units after rehabilitation.
2. Property Ownership An applicant for a rehabilitation grant w resi-
dential ormaxed-use property meet be the owner of the property, o
must be the purchaser occupant of the property under a land sales
contract or any similar contractural arrangement for the purchase of
real property.
The term "lend sales contract" refers to any transaction, regardless
of the nomenclature by which it is known, in which the purchaser -
occupant obtains fee title only if he completes a series of install-
ment payments over a term of years.
a. Eligibility Requirements In order for a purcboser order a
land sales contract to be eligible for a rehabilitation grant
to cover reb bilitation costs, all of the following minimum
requirements must be met.
(1) The contract shall be a written, legally binding, instru-
sent involving a residential property containing, after
rehabilitation, not more than two dwelling units.
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(2) 1be seller of the property must hold fee title to the
property and, while the contract is in good standing,
moat be unable to use the property for collateral or
to convey the property to my other party unless such
vee for collateral or conveyance of fee is subject to
the land sales contract. legally acceptable limitations
n the effect of conveyance or of the property for
collateral must be found to exist local law, the
provisions of the contract, oreother written agree-
ment in ordble form. The Cityof Bangor bell record
this agreement, or the contract, promptly after grant
settlesent if necessary to give either document the legal
effect described.
-(3). Under the contract, the seller and any subsequent holder
of the fee to the property moat be obligated, without
qualification, to deliver to the purchaser fee simple
title and a deed to the property upon flu1 payment of
the contract price, or sure lesser amount.
(4) Under the terms of the contract, the purchaser shell
have:
(a) poll use, possession, and quiet enjoyment of the
property.
(b) Equitable title to the property, and
(c) Full rights of redeaption for a period of not
less than 90 days, unless redemption rights not
less than 90 days are afforded by local law to
a purchaser under a land sales contract.
(5) 'lbe purchaser Shall have had possession and use of the
property under the contract for at least 12 months prior
to the date of application for a rehabilitation grant.
b. Opinion of Counsel Before an application for a rehabilitation
grant to a purchaser under a dead sales contract can be approved,
the City of Bangor must obtain a copy of the land sales contract
and a written legal opinion from its c del that each of the
foregoing conditions is satisfied, and setting forth the basis
for the opinion.
3. Income Limitation An applicant for a property rehabilitation grant
s"11 be considered an eligible recipient if the following two criteria
are met
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a. The applicant's inches (see Section 4), to include the income
of the applicant and his family who share the sane dwelling unit,
shall not exceed the following limits after adjustments:
Family Size Adjusted
Maximum Income
1 $4,200
2 4,800
4 6, 00
6 7,000
7 7,500
8 or more 79900
These limits are based on the Section 8 Family Inde Limits
issued by the Federal Housing Administration for Penobscot
Coon{y�these limits shall be reviewed and adjusted, if necessary,
on a regular basis.
b. The applicant's monthly housing expenses must be in excess of
25 per cent of gross monthly income.
4. Sources of Fonds and Amounts Comprising Applicant's Income
a. Family Composition For purposes of determining eligibility for
a grant,the composition of an applicant's family shall include
the applicant and any other person or persons related by blood,
Triage, or operation of law, who share the same dwelling wit.
If ownership of the property rests in more than one person, the
applicant is each owner and family.
b. Income An applicant's ince is established an an annual basis,
at the time a applying for a rehabilitation grant, and includes:
(1) Me Applicant's earnings.
(2) Spouse's earnings, and the earnings of each ber of the
family, other than minors, who share the household and who
w111 receive income during the ne:t twelve months. "Minor"
ber of the household (excluding foster childraa),
other than the family head or spouse, who is under 18 years
of age or is a full-time student.
- (3) The income of the family head or spouse shall be included
vert if that person is temporarily absent (such as being
on active duty in the Armed Forces).
(4) Other income regularly received by the applicant or the
applicant's femily from any source.
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(5) Net income fran real estate, other than the property to
be rehabilitated, end any other net business income.
(6) Incone from the rental unit in the property to be rehabili-
tated based on:
(a) Cross rental income, and
(b) on the basis of an snuual average of experience for
two or more years, expenditures for mortgage interest
and principal, mortgage insurance prondum, aarvice
charges, hazard insurance, real estate taxesand
special asaessmants, maintenance and repairs, heating
and utilities, ground rest, and other cash expenditures
for the property, such as advertising a vscancy. If
the applicant has not owned the property far tyro or
re years, the Community Development Department shall
estimate the income end expenditures an the available
experience.
(Y) Inde shall include, but not be limited to:
(a) The gross amount, before any peyroll deductions, of
wages and salaries, overtime pay, cowiasions, fees,
tips and bonuses;
(b) The net income from operation of a business or pro-
fession or from rental of real or personal property
(for this purpose, expsaditures for business eagan-
sion
amortisation of capital indebtedness shall
not be deducted to determine the net income fvoam a
business);
(c) Interest and dividends;
(d) The full amount of periodic payments received £ran
social Security, annuities, insurance policies,
retirement fbnds, pensions, disability or death
benefits and other similar types of periodic receipts;
(a) pµments in lieu of earnings, such as unm�ployment
and disability connation, workmen's pensation
and severance pay (but see paragraph 8 (c) below);
-(f) Public Assistance. If the Public Assistance payment
Includes an amount specifically designated for shelter
and utilities which is subject to adjustment by the
public Assistance Agency ineordance with the actual
coat of shelter and utilities, the amount of public
Assistance income to be included as income shall
consist of:
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(ass) The ®ount of the allowance or grant exclusive
of the sooner specifically designated for shelter
and utilities, plus
(bb) Me maximum amount which the Public Assistance
Agency could in fact allow for the family for
,shelter and utilities;
(g) Periodic a d determinable allowances, such as alimony,
and child support paysents, and regular contributions
or gifts received frees persona not residing in the
dwelling;
(h) All regular pay, special pay end allowances of a member
of the Arced Forces (whether or not living in the dwelling)
who is head of the family or spouse.
(8) Me following items $hall not be pa sidered as incmne:
(a) Casual, sporadic or irregular gifts;
(b) Amounts which are specifically for or in reimbursement
of the cost of medical capenses;
(c) hosp-sum additions to family assets, such As inheritances,
insurance paymenta (including payments under health and
accident insurance end workmen's capital
gains and settlement for personnel or property losses;
(d) Amounts of educational scholarships paid directly to
the student or to the educational institution, and
amwnto paid by the Government to a veteran for use
n meeting the costa of tuition, fees, books and
equipeent. Any varrunts of such scholarships, or my-
ments to veterans, not used for the above purposes or
which are available for subsistence are to be included
in income;
(a) Tse special pay to a sernceman head of a fanily away
from home and exposed to hostile fire;
(f) Relocation payments made pursuant to Title 11 of the
Uni£ose Relocation Assistance and Real Property
Acquisition policies Act of 1970;
(g) Foster child care payments;
(h) The value of coupon allotments for the purchase of food
puravant to the Food Stamp Act of 1964 which is in
excess of the vaount actually charged the eligible
household;
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(i) Payments received pursuant to participation in the
following volunteer programa under the ACTION Agency:
(aa) National Volunteer Antipoverty Programs Mich
include VISTA, Service Learning Programs and
Special Volunteer Programs.
(bb) National Older American Volunteer Programs for
persons aged 60 and over which include Retired
Senior Volunteer Programa, poster Grandparent
Program, Older American Community Services
Program, and National Volunteer Program to
Assist Small Business asperience, Service Corps
of Retired Executive (SCOBS) and Active Corps
of Executives (ACE).
5. Assets The applicant shall list all assets held by each m ter of
the family. For this purpose, assets mean the value of equity in real
property, savings, stocks, bonds, and other forma of capital investment.
The value of necessary items of personal property such as furniture,
clothing and automobiles shall be excluded. Any income producing
assets must be listed by the applicant. -
a. If total assets are greater than $5joOO and income fron assets
ds less than 10% of total assets, then eligibility incaae is
etermined as follows:
(i) Income frown assets shau be subtracted from annual income;
(2) To the resulting figure, add an amount equal to 10% of
the assets;
(3) This total is the eligibility thane.
b. If total assets are greater than $5,000 and incase from assets
is greater than 10% of assets, eligibility incrme should be the
sane as the sexual decors.
6. Allovances The applicant shall deduct the following total allowances
fsen annual income to determine eligibility incune:
a. The difference of total medical expenses less three (3) percent
of annual incase.
(1) "Medical expenses are those medical expenses which are
anticipated during the 12 -month period for which the
annual docaae is computed, and Mich are not covered
by insurance (however, preedums for such insurance mqv
be included as medical espouses).
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b. Unusual expenses.
(1) Unusual expenses are amounts paid by the family for the
Cars of minors under 13 years of age or for the care of
disabled or harnlicapped family household members, but
only where such care is
necessary to enable a family
member to be gainfully employed, and the amount allowable
as Unusual gxpen ea shall not exceed the amount of income
free aach employment.
c. The product of multiplying the number of minors in the family
W $300.
7. Portion of Income Derived Fro Rental Unite If the property will
contain more then one dwelling unit after rehabilitation, that portion
of an applicant's income that is derived from the property shall be
reported on BCD -IA as a net figure determined as follows:
a. Net Moome The net intoe from the rental units in the own -
occapied property to is rehabilitated is the gross rental income,
Less expenditures allot ble to the rental units. These alienable
expenditures include payments, On the basis of an average of
experience for two or mom years, for mortgage principal and
interest, mortgage insurance premium, service charges, hazard
insurance, real estate taxes and special assessments, maintenance
and repairs, heating and utilities, ground rent, and other cash
expenditures for the property such an advertising vacancies. If
the applicant rias not owned the property for two or mom years,
the Community Development Department shall estimate the income
and expenditures o. the available experience.
b. Allocation of Expenditures to Rental Units Me allocation of
expenditures to the metal units may be eat bllghed by dividing
total monthly expenditures for the entire property by the anober
of units in the property. The result is the monthly expenditures
allocable to the own ccupiad dwelling unit, which when sub-
tranted from the empenditu. e for the entire pmperty, produces
the montbly expenditures alienable to the rental units.
c. Net Rental Income On BCD -IA Me monthly expenditures allocable
to the rental units, subtracted from the gross rental income fro
the property, produces the net rental income to be entered on
BCD -1A.
d. Other Allocation Methods If the foregoing allocation method does
not produce a ma bly egn£t ble result, the Community Develop-
ment Department may use another method of allocating the expenditures.
a - In that case, the Comauuty Development Department shall attach to
its copy of WD -IA a statement showing the basis, calculations,
and results for the method of alloeatim used.
e. Rehabilitation Grant SuMbeented with 10ce If the rehabili-
ruch grant is to be supplemented with a rehabilitation loan,
it should be noted that en WD -LA the income derived from the
property to be rehabilitated is reported as a gross ageogumt in
ecordance with the sources of income requirements ( 4.- a. and
b, above).
8. Documentation of Income Me Community Development Department may
require an applicant to furnish documentation of his or her income in
order to determine eligibility for a rehabilitation grant.
9. Monthly HOus1M Expense Monthly housingexperts¢ includes, to the
extent applicable, payments for mortgage principal and interest,
mortgage ingaurcnce premium, service charges, hazard Insurance, read
estate taxes and special assessments, maintenance and repairs, heating
and utilities, and ground, rent.
a. More Than one Dwelling [Mit If the. structure contains more than
e dwelling unit, the monthly honsing expense Consists Of those
expenses allocble to the owner-occupied dwelling unit. Me
allocation of empanses to the applicant's dwelling unit may be
established by dividing the Pall cost of each of the items
included in monthly housing expense by the number of wits in
the property. The results are the items of monthly housing
expense allocable to the applicant's dwelling wit to be entered
on BCD -1A.
b. Other Allocation Methods If the foregoing allocation method
does not produce a reasonably equitble result, the COmmwrity
IsroJopuent Department may use another method of allocating
expenses. In that case, the Community Development Department
shall attach to its copy of WD -1A a statement showing the
basis, calculations, and results for the method of allocation
used. This statement may be part of the same statement used in
establishing expenditures allocable to the rental wits.
c. Consistency in Allocation Method In any case, the Carsmunity
Developnent Department ball use the same method of allocating
monthly housing go nese as it uses in allocating expenditures
to the rental units.
d. Documentation of Reusing Expense Me Community Develeiment
Department may require an applicant to prevlde documentation
of his or ber housing expenses to determine eligibility for a
rehabilitation grant.
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D. Assurance That Rab bilitation Will Be Completed
In cane instances the rehabilitation cost may exceed the amount of a rehabili-
tation grant. In such cases s reT bilitation grant will cot be made unless the
applicant can provide whatever additional amount is needed to assure completicn
of the work so that the property will meet at least the mdnimum requirements of
the Housing Code.
1. Reh bilitation Grants Mlemented by Loans I£ the applicant for a
rehabilitation grant o residential property and a mixed-use loan is
obtaining a supplemental loan, the rehabilitation grant application
shall not be approved until evidence has been secured that the applicant
has obtained an adequate end satisfactory supplemental leen enwaitmmt.
When the loan will be btsined from a recognised lending institution,
evidence shall consist of a signed, bone fide written camnitment to
make the loan for the purpose of the rehabilitation work. The loan
shall be in on amount wbich, when added to the rehabilitation grant
and any other fonds the applicant will furnish, will be snfficieut
for completing the required rebehilitatlon work.
hbm the applicant is furnishing supplementary funds from sources
other than a recognised lending institution, evidence that actual
fonds arsvellable shall consist of verification end docweentation
that theapplicant can deposit the required amount in the rehabili-
tation escrow account.
E. Costs Includable in Rehabilitation Creat
1. General A rehabilitation grant may be made only with respect to a
property which needs to be brought up to the minimen requirements of
the Housing Code. With respect to a property containing rental
dwelling units, a rebbilitation grant generally should include funds
for work that goes beyond the minimum regaireoents of the Housing Cede
only to the extent that this will. not carie the rents to exceed the
memos of typical families living in the Comnwnity Development Program
project area.
2. lncludsble Costs In addition to those costs for rehabilitation to
make the property confers to the requirements of the Housing Code, a
rehabilitation grant may include fine to cover the coats described
below:
a. Objectives of the C2 mM pity Dev L meet Plan A rehabilitation
grant may include fonds to corer the cost of meeting specific
objectives of the Community Development Plan. As objective
must be contained Is the app » d Community Development Plan
and stated do such language that the specific rehabilitation
work needed in the property is clearly identifiable.
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Is. Good and Readily Msintaiaable condition Nbethex or not required
W the Housing Code, a rehabilitation grant may provide for
patting the property in generally good and readily maintain lle
condition, with the necessary facilities in good working order.
c. Kitchen Egdimnent Whether or not required by the Housing Cade,
rehabilitation grant fax a property used for residential pur-
poses may provide for the repair or purchase and installation
of a kitchen stove and/or refrigerator. Purchase and install-
ation isceptable if there is no such equipment in the dwelling
wit, or if existing equipment is unsafe or unsanitary because
of its basic ph7bical condition. Grant funds may also be need
for building in a stove and/or refrigerator, if necessary to
replace existing built-in equipment.
d. Acquisition a Lard In a Camsedity Developsent Program prod eat
area, a rehabilitation grant may provide for the purchase oP a
relatively small parcel of project land from the City in order
to being the property into conforsity with the Ordinances of
the City of Bangor.
e.'Conversiwa In general, conversion of a property so as to
change either its use or thenumber of wits may be provided
for in a rehabilitation grant only if conversion is necessary
to meet the requirements of the Housing Code or to eliminate
a nonewfonaing use.
f. Building Permits and Related Fees A rehabilitation grant may
provide funds to cover the cost of building permits and related
fees that are required to carryout the proposed rehabilitation
work. However, since the construction contract documents will
require the contractor to pay for them, this cost ordinarily
would be included in the contract mount.
3. Costs Not Includable Except as otherwise provided in this section,
a rehabilitation grant she not provide for:
a. New construction, substantial reconstruction, expansion of the
sive of a structure, or the finishing of unfinished spaces such
as an attic or basement.
b. Materials, fixtures or equipsent of a type or quality which exceeds
that customarily used in the locality for properties of the same
general type as the property to be rehabilitated.
C. Landscaping or paving net required by the Housing Code.
d. Appliances not required by the Housing Code.
a. purchase, installation, of repair of furnishings or trade
fixtures.
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4. Work Write -Up The Reb hilitation Specialist shall prepare a work
write-up to dowment the rehabilitation work to be financed with
the rehabilitation grant Is accordance with Section K. 3• of this
Plan.
F. Limitation m Amwnt of Grant
The amount of a rehabilitation grant that an eligible applicant may
receive shall be an sooner which does not exceed the least of the following:
1. $4,000.
2. The actual and approved cost of the repairs and improv®ants necessary
to make the property conform to all City of Hanger code standvds
respecting safe, decent, and sanitary housing. This amount shall be
established in accordance with Section L of this Plan.
3• net portion of the coat of repairs and improvceente which cannot be
paid for with any available loan that can be amortized as part of
the applicant's monthly housing expense without requiring that expense
to exceed 25 per cent of the applicant's monthly income. The team
any available Sown" means:
a. A maximum term City of Bangor property Rehabilitation Loon if
such loan is available under the Community Development Progran;
b. A maxioam teem Section 312 rehabilitation loan if such loan is
veil ble; or
c A conventional loan typical of those made in the locality by
banks and other lending institutions for the purpose of
rehabilitation (assumes the best interest rate and longest
term available to the applicant) when the bore two funds -
a. and b. - are not available.
G. Terme and Conditions Under Which Rehabilitation Grants Are Made
1. General This section sets forth requirmients with respect to terms
end Cmditione to which an applicant moat agree in ander to Obtain a
rehabilitation grant.
2. Cancellation Provision The City of Bangor reserves the right to
cancel a Property Rehabilitation Grant if within 60 days frwm the
grant's approval by the City Council Finance Committee rehabilitation
work hes not coramenced, provided however, that the Director of Community
Development may extend the 60 day period by not more than 60 days, due
to unforeseen and extenuating circamatancee.
3. Rehabilitation Grant Conlitlms The specific terms and conditions
with reepect to a rehebdlltation grant are
neogporated in Foxm BCD -0A.
The applicant shell agree, and by signingFoam BCD -1A does agree to:
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a. Civil Rights Comply with all RU➢ requirements with respect to
Title vI of the Civil Rights Act of 1964, to not discriminate
upon the basis of race, color, creed, or national origin in
sale, lease, rental, we, occupancy of the subject property.
b. Section 109 Comply with Section 109 of the Horning and Comaun-
ity Develoiment Act of 19/4 prohibiting discrimination an the
ground of r � color, national origins Or ax.
c. Cancellation of Grant Return of the grant proceeds with no right,
interest Or claim in the proceeds, if the grant is canceled before
the rehabilitation work is started.
d. Use of Proceeds Use of grant proceeds only to pay for cents of
aand materials necessary to carry ant the rehabilitation
workfor which the grant will be approved.
a. Completion of Work Assure that the rehabilitation work shall be
arried out promptly and efficiently, through written contract
let with the prior concurrence of the City of Hanger.
f." Ineligible Con routers Not award any contract for rehabilitation
work to be paid for in whsle or in part with the proceeds of the
great, to arty contractor who at the time, is ineligible under the
provisions of any applicable regulations Segued by the Secretary
of Labor, United States Department of Labor, to receive an award
of such contract.
g. Inspection Inspection by the City of Bangor or its designees of
the property, the rehabilitation work and all contracts, materials,
eVileeut, panrolls, and conditions of employment pertaining to
the work.
h. Records Keep such records as may be required by the City of
Baogor with respect to the rehabilitation work.
J. Interest of Certain Federal Officials Net parent any member, or
Delegate to the Congress of the United States, end no Resident
Commissioner, to share 1n any proceeds of the grant, or in any
benefit arising from the aand .
J. Bonus, CurmAesi® or Fee Not pay any bonus, C x fee
for the purport of obtaining the City of Bongoes approval of the
great application, or any other approval or concurrence required
by the City a Bangor or its designee, to complete the rehabili-
tation work, financed in whole or in part with the reh bllitation
grant.
k. Interest of City of Bangor Allow no ber of the governing body
eP the City of Bangor, who exercises any functions Or responsibilities
in connection with the administration of the Community Development
Program, and Do other officer or employee of the City of Bangor who
exerejoes such functions orresponsibilities, to have any interest
direct or lwirect, in the proceeds of thegrant, or in any contract
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entered into by the agplicaut, for the performance of work financed
in whole or in part with the proceeds of a rehabilitation grant.
R. Processing and 5 bmdssions for Rehabilitation Grant
1. General This ebapter containg on outline of the factions to be
performed bythe Community Development Department in connection with
rehabilitation grant; and sets forth the policies and procedures to
be followed by the Community Development Department in preparings pro-
cessing, end approving an application for a rolbilitatiOn grant, and
in cenceling an approved rebbilitation grant.
2. Dutline of Comwnity DevelopmentFwctime Listed below are the
YW tions to be performed ey the Commuv.ty Development Department in
connection cath a rehabilitation grant.
a. Interview and advise applicant on the general rehabilitation
objectives of the project, and the parpose and meaning of the
Housing Code.
b. Advise the applicant on the availability and basedits of a
rehabilitation grant, and other local, Federal and private
progress and resources for financing rebsbilitatiw that
may be available.
C. Inspect the property.
d. prepare a work write-up end coat estimate of the rehabilitation
work.
6. Determine eligibility oP the applicant for a rehabilitation grant.
Evidence that o erebip of the property has been verified and
shell be retained in the Comene i.ty Development Department files.
aid shall include the citation from the land records or other
Official record from utich the verification was made. I
If applicant is occupant -purchaser under a land sales contract,
obtsia documentation to support eligibility.
f. - verify applicant's incomes housing expensed end assets.
g. Determine that work Stoma in work write-ve conform to purposes
for Mich a rehabilitatiw grant can be used.
b. Advise applicant concerning the conditions under which a
rehabilitation grant is made.
r. Establish amount of grant applicant Mev receive.
j. Be assured that as a result of the rehabilitation greets the
property will be rehbilitated at aminimum to meet the cods
starWards.
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k. If applicant does on mill receive public assistance or other
velfare benefits, advise of effect greet NOV have.
1. If the applicant is eligible for, and needs a rehabilitation
Iran; assist him in filing an application.
M. Prepare cm,atroction contract donOwents for applicant, and
obtain bide and proposals from contractors.
n. Determine as -is value o£ property by staff eatimate for entry
on WD -1A.
o. Prepare WD -U, Rehabilitation Grant application, (original
and one copy) sod obtain applicant's signature.
p. Assign application number and enter on approved WD -1k, and
all related documents.
q. If all requirements are met, assemble grant application file
for presentation to the Finance Cosm<ittee of the City Council
for consideration. If the grant is not apprwed, the Director
of Community Development will notify the applic®t in writing
setting forth the reasons for disapproval.
r. If grant application is approved, prepare project check to
applicant for mount of approved rehabilitation grant, obtain
applicant's endorsement, and deposit check for grant in
rehabilitation escrow account.
S. Assist applicant in execution of emstrvctim contract, and
deliver to selected contractor.
t. Assist applicant is issuing proceed order for construction
work.
u. Inapect rebbilitatim work as it progresses.
V. Make final inspection of completed reh tilitation work.
W. Issue WD -21, Certificate of Final Inspection.
X. Obtain from contractor guarantee of work, manufacturers' and
suppliers' warrantees, and release of liens from the general
contractor, subcontractors mud auppliers, prior to final
payment for rehabilitation vork.
y. Prepare Statement of Disposition of Funds.
Z. Close out rehabilitation escrva.
as. Make follow-up inspection.
-w-
3. Processing and Approval of Grant Application Processing by the
Ceram y Development Department of an appllnemen for a eehablli-
tation grant consists of the completion of the functions listed
below, items a through c, asseable, in one file of BCD -IA and all
supporting docrawts, and the review Of the file to determine
approval.
a. Preparation of Form The Garrity Development Department
shall prepare BUD -i& (original and me
copy) for the applicant,
based on information furnished by theapplicant and obtained
by the Cw ity Development Department Prom other sources,
as documented in the file. Beery space provided for an entry
on BCD-lA shall be completed- Entries of money amounts shall
be made rounded to the nearest dollar. if no money in involved
for an entry for a particular application, the entry shall be
"none". Review mi approval by the Finance Consittee of the
City Council of KD -1A shall be based on the form completed In
this manner.
b. Applicants Purchasing Under a Land Sales Contract If an applic-
ation for a rehabilitation grait-la rath respect to an occupant
under a land sales contract or similar asrang®ent, the file
shall contain documentation to support the requirements in
Section C. 2.
c.
MM
of Application for Grant The Finance Co rittee of the
City Ceuncil shell consider and approve or disapprove all property
rehabilitation grant applications, and shall decide all questions
concerning eligibility for said progrmm� including all questions
an to passible conflict of interest. If the application for a
reh bilitotfon grant is approved, the Conmmmity Development Depart-
ment may notify the applicant and proceed with the ramai.nder of
the fractions for which it is responsible in order to complete
the rehabilitation work.
(1) If the Citv of Bangor detersd.nes that an epnlication Por
rant cawot be approved, a written statement oP tRe
reasons for the determination ball be pat in the applic-
ation file by the Commmmity Development Department.
4. Grant Cancellation An approved rehabilitation grant may need to be
causeled because the applicant ban requested cancellation ori
on -
willing or unable to proceed with the reh tilitatiwork, or foa
other reasons.
a. Cancellation Letter To cancel an approved reh bilitation grant,
the Comaunity Development Department shallpreparea letter of
cancellation anal distribute the letter as follows:
(1) Original to applicant.
(2)One only to the applicatiop file, -
-15-
Is Return of funds I£ fvMa for the canceled rehabilitation grant
have been deposited to the rehabilitation escrow acnuntw the
Community Developmentshall draw Department shadraw a check on that
acccant for the mount originally depositedw pay role to the
source from which the funds were obtained.
I. N Bering Grant Aoalicetions
The Commmunity Development Department shall assign a n ler to every applic-
ation for a rehabilitation grant beginning with "1" and shall be assigned con-
secutively fren this sequence regardless of whether the application is approved
or disapproved, once ssslgned, mm3ers shall not be reused. Men ber assigned
shall also specifically identify the application as being an application for a
grant.
T. Manegmwent of Reh bilitation Escrow Account
1. General This section sets forth policies for funding the individual
rehabilitation grants, and for C®runity Development Department
management
of the rehabilitation escrow account.
2. yowling a Rehabilitation Great A City of Bangor check in the amount
of the approved grant and made payable to the applicant will be secured
from the Finance Department. At grant settlenent the Cenaundty Develop-
ment Department shall secure the applicant's eriaoxsahentw and deposit
the check in the rehabilitation escrow account.
3. Rehabilitation Grant Supplemented by other Fords If a rehabilitation
grant is to be supplemented by funds to be gwv ided by the applicant
from a source other than through a commitment fres a recognized
lending institution, those supplemental fonds shall be deposited in
the rehabilitation escrow accoant at the same time the rehabilitation
grant cbeck is deposited. Supplemental fonds provided by means of
a commitment from a recognized lending institution may either be
deposited in the rehabilitation escrow aecosntw or applied by the
property owner for direct payment of the rehabilitation work. If the
supplmnental funds are to be deposited in the rehabilitation escrow
aunts the deposit moat be made prior to any payment by the City of
Bangor to the contractor. I£ the supplemental funds are not to be
deposited in the rehabilitation escrow account, then abash funds shall
be applied in full by the property owner before any dlsbursemonts.
may, be made inch the rehabilitation escrow acco xt for rehabilitation
work.
4. Manuaemeny of Rehabilitation Escrow Account Me City shall maintain
e single bank account as the depository for all rehabilitation loans
and grants that are funded, as well. as for supplemental fonds provided
by the applicant. This accopnt shall be separate and distinct from
all other accounts maintained by the City and shall be for the sale
purpose of depositing rehabilitation escrow account funds.
-16-
a. Separate Account for Each Borrower The Community Development
Deperbnact shall eat nilan end maintain a separate account, in
the project books of account, for each borrower who hes received
rehbilitation grant All receipts and disbursements made
for the borrower chill be recorded in the account.
b. Disbursements from the Rehabilitation Escrow Account Disburse-
ments fram the reh bllitation escrow account shall be by check
made payable jointly to the borrower and the payee for the
following purposes, sa may be appropriate:
(1) Miles
ggress Payments arNealimit ednto 8a$ for of�tihielvatlue of tthe
work satisfactorily completed.
(2) Pay for insurance birafter, if required.
(3) Close-out the rehabilitation escrow account by appropriately
disbursing any umitiliaed forcermpaining in the rehbili-
tation escrow account.
c. niswrsementa by the Community DeVel.epment Department
(1) The Community Development Deparimentp upon receipt of
appropriate invoices, shall draw a check for the payment
of completed and approved work and services. fiacept for
uuutilized funds in the rehabilitation escrow account to
be returued to the grantee2 each check aball be made pay-
able jointly to the grantee and the appropriate payee.
Me Co®unity Development DepartZent shall secure the
endorsement of the grantee on checks that are made 9ey-
b1 jointly to the grantee and the payee. The Community
Development Department shall transmit the endorsed check
to the payee.
(2) A check to return to the City of Bangor unutilized funds
in the rehabilitation escrow account shall be made payable
to the City a Bangor only.
d. Trensmittal of pranks After securing the borrcwer's endorsement
on the check a ( the C®munity Development Department shell trans-
mit the cbeck(s) to the payee. Checks which include any amounts
previously witHaeld from progress payments shall be accompanied
by an esplamtion of the computation.
e.. Disputes In ne event a dispute exists between the grantee and
the contractor with respect to the rehbilitation works the
C®muxity Development Department shall take appropriate action
in accordance with the provisions of the construction contract
-17-
to assure that the grantee is satisfied before making any
payment to the contractor.
f. Adivstmevt and Closeout of Rehabilitation Escrow Account
Usually disbursements nade for the purpneed stated under para-
graph 4.b., vi].l close oat the rehabilitation coerce account.
However, if unutilized fonds remain in the rehabilitation
crow ace ount because the actual rehabilitation costa were
leas thananticipated or for other reasons, the unutilized
Pends shall be disbursed to apply as follows:
(1) If all the Honda were provided by a rehabilitation grant,
the unutilized Hands shall be disbursed to be returned
to the City of Bangor Community Development Program
account.
(2) if the loan was supplemented by other funds, the un-
utilized fonds shellbe disbursed to the grantee.
K. Deteaadni Work To Be Done With Rehabilitation Great
1. General Chis Section sets forth the responsibilities of the
Cwwonity Development Department for determining the rehabilitation
work necessary to bring a property into conformance with the Housing
Code of the City of Bangor and for providing assistance in the
ret tilitation of the property. In carrying out these responsibilities,
the Community Development Department shall:
a. Be responsible for the inspection of the property.
b. Make a preliminary work waste -up and cost estimate of the
work. to be done.
C. Consult with and advise the Owner on the work to be done, and
the availability of a rehabilitation grant.
d. Prepare a final work write-up and cost estimate as the basis
for a rehabilitation grant and for contracting for the
rehabilitation work.
2. Property Inspection The Commodity Development Department shall
inspect the property and prepare an inspection report that identifies
each deficiency with respect to the Housing Code and other deficiencies
which se, be corrected through rehabilitation grant funds. An inspection
report prepared in this manner rill later serve on the basis for pre-
paring a work +mite -up and cost estimate.
3. WorkWrite-Up and Cost Estimate A work write-up end coat estimate
a statement prepared by the unosunity Development Department based
an the property inspection report that itemizes all the rehabilitation
work to be done on the property, and includes an estimate of the cost
of each item. Phe cost estimate shall be reasonable and shall reflect
actual costs prevniling in the locality for comparable work.
-18-
a. Itmmfsin6 Cost Each iter of work and its estimated cost
shell be identified in the work wrlte-up as being either
necessary to meet Honing Cede standards, or for other
purposes that may be financed with rebbilitatlon grant
funds. Mss will be done on the work write-up by entering
the cost estimates in a columnar arrangement.
b. Identifying GPS The work write-up and cost estimate shall
identify those items amt costs which may be included only
on the basis of being to "generally improve the condition
of the property".
C. Adtusting Work shite -Up If the total estimated cost of the
work exceeds the amount of the rehabilitation grant the
applicant could reeeds the applicant's financial
ability to do all the work, the Community Development Deport-
ment shall eliminate or modify items in the work write-up as
necessary to reduce estimated cost; however, items Of work
necessary to meet Housing Code Standards shall not be
eliminated.
d. Owners Pr
seference A preliminary work write-up should not
ontain details that have rt alguificent effect on cost,
such a color, style, or pattern. Decision on these details
an be made when preparing the specifications for the con-
struction contract documents, or owed after the contract
ward by providing in the contract docwments, as appropriate,
the team "to be selected by owner".
4. 6necificatives in Gonstmetion contract Documents Each specification
in a constructive contract document shall be written 80 that it provides
a clear 'understanding of the nature and scope of the work t0 be done,
and a basis for carefully determined bids end proposals from contractors.
Each Specification shall show the nature ami location of the work, and
the quantity and type of materials required. The specifications shall
refer to manufacturers' brand names or to association standards to
identify the quality of materials end equipment required, and may make
prwisfon fox acceptable substitutes. If the work write-up is Suffic-
iently roeprehensive, it may itself be used for the specifications,
without door cost estimate figures or distinctions as to work required
or not required.
L. CCatractiags for Rehabilitative Work
1. Introduction Chis section dots forth requirements and procedures
with respect to construction contracts for rebabilitation financed
thmwgh a rehabilitation grant. Construction work for rehabilitation
financed through a rehabilitation grant shall be undertaken only
throcgh a written contract between the contractor and the recipient
of the grant. The Community Development Department shall assist
each applicant in arrsaging for and obtaining an acceptable c -
stractlon contract.
s. Form of Contract The construction contract w111 consist of a
single doement signed by the contractor and accepted by the
whoop only following approval of the rehabilitation grant. _
It shall contain a bid and proposal by the contractor and the
general conditions, as well as the specifications for the
work t0 be performed.
b. Use of Alternates The contract document prepared by the
Can ity Develolment Department may provide for alternates
by which the bidder, as part of his bid and proposal, offers
increases and decreases t0 the burp. evmeontract price to
cover
alternatives in the performance of the work. An alter-
ratemey be used to coves an item Of work, the need for which
cannot be determined until some time during the course of the
rehabilitation work. For example, the construction contract
may can for replacement of a bathtub. The floor joists in
the bathroom are act exposed, and their actual condition
snot be determined even with careful inspection. However,
general conditions in the bathrcon, such as evidence of
plumbing leaks Over a period of time, indicate that the floor
joists may be rotted. The work write-up, cost estimate, and
the approved rehabilitation grant may include an amount to
replace the floor joists and related casts if, upon removal of
the old batht b, this need is appareut. Under such circumstances,
the work he replace the floor joists should be included in the
construction contract document as an alternate. If upon removal
of the old bathtub it is found that work is not needed, no pay-
ment for it is required under the construction contract. If that
work turns out to be needed, the cost is established by the
construction contract documents, and the contractor can be
ordered to proceed with that work for the stated arm.
(1) Format for Alternates Generally, alternates should be
avoided, but when used, the C®aannity Development Depart-
ment shall provide for thon apecificnlly in the section
provided for bid and proposal by adding material such as
the following:
Alternate #1 (description of the alternate)
Add $ Deduct $
Alternate #2 same as bore, etc.
(2) Unrest d Alternates not Considered The Ccowu ity
Development Department shall not consider alternates pro-
posed by a bidder that are not called for in the contract
doccment prepared by the Department.- Me Department shall
not consider a bid and proposal that is qualified by the
contractor with OnVequested alternates or other changes-
-20-
C. Procarmaent of Hida A acceptable contractor's bid and pro-
posal, in the contract doament form prepared by the Coammuty
Develcymat Department, moat be obtained for all grants.
2. General Ccoditiens The Comenity Development Department shall pre-
pare provisions of general conditions for general use in all construc-
tion contracts for the rehabilitation of the property. There follows
a listing of provisions that the Community Devel.opamh Department must
include in the general conditions:
a. The address to which the contractor's bid and proposal met
be submitted.
b. Date and time by which a bid and proposal by the contractor
is to be received by the Cosmmlty Davelopment Departeent.
C. A provision that the bid and proposal shall be accepted by
the Owner within 30 days from the date established by the
Camnmity Development Department for its receipt, provided
that the contract is subject to issuance of a proceed order
by the ower, and no work shall be coarsened by the contractor
until he has received a written proceed order.
d. A provision that the Owner is obligated to issue a written
proceed order within 30 days from the date of acceptanof
the contractor's bid and proposal. If the order is not re-
ceived by the contractor within this period, the contractor
has the option a withdrawing his bid and proposal.
e. A provision that the contractor mot c ce work within 30
days after issuance of the proceed orden
f. A provision that the contractor moat satisfactorily complete
the work within days after the issuance of the proceed
order.
g. A provision that the contractor will be paid the contract price,
in one lump a= amort, after the work is satisfactorily completed
unless payment is to be made in progress peymants as the work
progresses. Ween pragresa payments are to be made, the contract
must include a schedule that specifies the stages at which pay-
ment will be made and the percentage (or amount) of the contract
price that will be paid for the satisfactory completion of each
stage. Progress peiyment shall not exceed 80% of the value of the
work satisfactorily eampieted. progress payments (limited to two)
and final payment due the contractor will be paid within 20 days
after the Canmunity Development Department receives the contractor's
invoice and satisfactory release of liens or claims for linea
by subcontractors, laborers, and material suppliers for com-
pleted work or installed materials.
h. provisions that the contractor shall he required to:
-21-
(1) Furnish evidence of conprehansive public liability
o
e coverage protecting the Owner fun rot less -
thah $ ;
in the event of bodily injury
including death,and $ in the event of
property damage arising eat of the vork performed by
the contractor; and, evidence of insurance or other
Overage required by local law governing WOskeen'a
compensation. (Me Coaunity Development Department
shall insert insurance amounts cocemourate to the
risk entailed in the Work.)
(2) Obtain and pay, for all permdta and licensee necessary
for the completion and execution of the Work and labor
to be performed.
(3) Perform all work in conformance with aw"c ble local
cadre and requirements whether w not c e red by the
specifications and drawings for the work.
(4) Abide by Federal and local regulations pertaining to
equal employment, if the sum to be cbarged for the
work is more than $101000, by incorporating the required
language of Executive Order 11246 as set forth in the
Terms and Conditions Wick are a part of the grant
application. If the contract is for a structure that
will contain 12 or more dwelling units after rehabili-
tation, the contractor will, and will require his sub-
" oatractora to, bide by the Federal Labor Standards
provisimc as set forth in Forms HUD -6231A, Supplemental
Teras and Conditions for a Federal Rehabilitation Loan
Under section 312 of Rousing Act of 1964, As Amended,- -
Residential property Containing lb or More Dwelling
Units, and EUD-3200, Federal Labor Standards Prwiaions
as Modified by Form HOD -320Q1 Addendnn to Federal
Labor Standards Fewisions.
(5) Keep the premises clam and orderly during the coarse of
the work and rerve all debris at the carpletion Of the
work. Material¢ and equipment that have been removed
and replaced as part of the work shall belong to the
contractor.
(6). vot siMtegestfor ss
contract
aiWots
itt
hener.ert be addressed to
the CovmunityeDevelopaent Depaetoent.
(7) Guareatee the date ofhfinalkaccepteam for
Oil the work arq dr one ye� £ran
by
the contract. Furthenaore, furnish the o re of
the C®um
nity Developaent Department, with all manufacturers'
and suppliers' written guarantees and warranties covering
materials and egailment furnished under the contract.
-22-
(B) Permit the City of Bangor, or its aesignee, to examine
and inspect the reh bilitetlon work.
i. Provisions that the owner will:
(1) Permit the contractor to use, at no cost, existing
utilities such as light, heat, power, and water
necessary to the Carrying out and completion of the
work.
(2) Cooperate with the contractor to facilitate the per-
formance of the work, including the removal and replace-
ment of rugs, covering, end furniture, as necessary.
J. A provision that the premises are to beeither occupied or
vacant during the course of the construction work.
k. A provision that final payment on the contract amount rill be
made Only after final inspection and acceptance of all the work
to be performed by the contractor, and the contractor has iur-
niched the owner, c/o the Community Development Department
satisfactory releasee of liens or claims for liens by the
contractor, subcontractors, laborers, and material suppliers.
1. A provision that the contract consists of the bid and Proposal,
the general conditions, the specificationsincorporated there-
in by reference and identified as (the Cmmnmfty Development
Department All have inserted in this space appropriate
identification of the specifications for the work to be done
for the specific property involved), and the drawings (if arty)
identified as (the Coamnnity Development Department An have
inserted appropriate identification of the specific drawings).
M. A section at the end of the general conditions containing
material to be completed by the bidder, generally as follows:
For the considerations named therein, the Contractor
proposes to furnish all the material and do all of the
work described in, and in accordance with, the contract
identified above in Item 1, of the general conditions
for the pump -sum price of
Contractor Acceptance by Darex
(were of Contractor) (Name of owner(s))
(signature of Contractor) (signature of owner(s))
Address andrZlP code of Address and ZIP code of
Contracto 0wner s
(Date of Bid and Proposal) (Date of ACcePtance)
-23-
Notarfsfltion or Acknowle (Notarisation or
sent Acknowledgement7—
3. Previsions To Meet Local Conditions The Con®nuty Developsent
Department may add other provisions to the general conditions to
reflect local conditions and to assure that the contract clearly
seta forth the requirements for the construction work to be done.
4. Specifications and Drawings Specifications, based on the work
write-up, and illustrative sketches, if say, covering the specific
rehabilitation work for each property on which a rehabilitation
grant will be made shall be prepared by the Corunity Development
Department. Drawings shall be prepared only when essential to
show the scope of the work involved so that a fair bid for the
work can be obtained, and to avoid with the
bidder. Me specifications and drawings shall Be based on the
work write-up resulting Prom an inspection of the property and
interview$, as indicated, with the applicant. The specifications
shall clearly establish the nature of the work to bedone, and
the material and equipment to be installed. Known acceptable
brands shall be identified by reference to manufacturer's oe
association specifications, and provision shall be made for
acceptance of equal substitutions. Each page of the specifications
and drawings shall ben bared and shall contain identification
that includes the name, address, m,d ZIP cede of owner, and the
date of the specification.
5,
ObteinjHg Obtain'Contractors' BSds and Prgosals The Conssunity Develop -
East Department shall establish and, on the basis of its experience,
maintain a current listing of contractors, subcontractors, and
materials. suppliers who one qualified to perform, mi are inter-
ested in doing rehabilitation work financed through a rehabilitation
grant.
6.
Invitation to Contractors for Bid sed Praeosal The procedures for
inviting and obtaining a bid and prolm from a conoracul, depend
an the coat for the work to be done under the contract documents.
If thecost of the work is: -
a. Lass than $1o,000, the construction contract may be negotiated
with on more prospective bidders. However, if a bid can-
not be obtained for less than $10,000 through negotiations) the
Caanunity Development Department shall obtain bids by formal
advertising:
b. $10,000 or more, a low bid moat be obtained by £Orval advertis-
ing: An invitation for sealed bids shall be published in a
newspaper having general circulation in the locality. The
period of time between publication Of the invitation and the
bid opening date shall not be less than seven less-
-24-
7, selection of successful Bidder If a bid other than the low bid
is selected, the application file will include all bids that were
received and a statement of the reasms for selecting other than
the low bid. The applicant's preference is not an acceptable
reason for selecting a higher bid.
a. Number of Bids Under formal advertising, a bid and proposal
frm at least two contractors nest be received before selection
is made. If formal advertising does not produce two bids, _
and the bid received is acceptable, the Finance Committee of
the City Council may authorise the selection of the single
bidder.
b. Acceptable Contractors The Community Development Department
shall always exercise care and good judgment in selecting a
contractor. A selected contractor shall be of good reputation,
financially sound, have adequate financial resources to carry
out his bid and proposal, and be qualified to do the required
work. The Community Development Department shall frequently
rmitor its list of contractors to ensure that they continue -
to be acceptable.
c. No Notification to Bidder before Contract Award The Comonity
De;7buMeat Department shall not advise any- bidders of either
selection or rejection before the contract is awarded.
B. Award of Construction Contract The contract shall be awarded by
having the applicant £or the rehabilitation grant properly exemte
the contract with the assistance of the Community Development
Departmeat.
a. Issuance of proceed order At the time the award is made, the
Community Develolummt Department shall remind the applicant
And the successful contractor that the undertaking of the work
covered by the contract is subject to issuance by the owner of
a proceed soder, within the number Of days stated in the
general conditions of the contract from the date of the award.
Upm award of the contract, the Community Development Depart-
ment shall notify unsuccessful bidders that they have not been
awarded the contract
N. Contract Awarded After Grant Apezoval The contract award shall
be made only after the grant has been approved by the Finance
Camittee of the City Council.
0. Award Within 30 Days of Cutoff Date In order for the bid and
proposal to be binding, the award ahall be node within a period
of 30 days fret the cutoff date established by the Conamnity
Development Department for the receipt of the bid and proposal,
unless a later date is agreed upon in writing.
-25-
d. Contract Award In the award of a construction contract for
rehbilitation, the dnvoly d parties shall arecute an original
and three copies of the contract documents. The COswuity
Development Department stall distribute the executed contract
documents, as follows:
(1) Executed original to contractor.
(2) Executed counterpart to owner.
(3) Executed copy retained by the Community Development
Department.
(4) Executed copy retained by the City Clerk.
9., Issuance of Proceed Order The general conditions of the construc-
tion contract will state that the Owner will issue a proceed order
within a stated number of days frrm the date of anceptance of the
contractor's bid and proposal. i"ne proceed order for a construction
contract which shall be exeented by the owner at grant settlement,
shall be issued within 30 days of the acceptance of the contractor's
bid and proposals and shall require the startofconstruction within
30 days or less fr® the date of the order's. signing unless an
extended perked a time is anthorised by the Director of Community
Development and approved by the owner for reasons beyond the
control of the Contractor.
a. Original to the contractor.
b. One copy retained by the Community Development Department.
c. One copy to grantee or owner.
10. labor PrP ed by Owner in Rehabilitation Property
a. Me oP k d skill of owner A property owner may complete
r all oP the tw,. requdasd to rehabilitate his pmpertyw
if he has the degree of skill required to perform the work
involved. Self-help is usually appropriate for the accomplish- -.
Ment of task® of an unskilled nature such as general Cleanup;
demolition a small buildings on a prOPerty; removal, cartagel
and disposal of the debris; and for work that involves minimal
One of costly Materials and equipment. work of a skilled nat xe,
and work involving the extensive installation of costly materials
and equipment, are aWropr'iate if the Concemity Develodsent
Department is essnred the property owner has the ability and
experience required to An the work propsrly without Svlsevlsdon,
or that he has sufficient skill to do the work properly with
technical edrice and guidance fres the Community Development
Department.
26
b. Benefits frac Self -Help Self-help may reduce the amount of
a loan tttat the property owner would otherwise require, thereby
reducing his monthly payments or the team of the loan, as he
prefers.
At times self-help myy also enable a property owner to obtain
reh bilitation grant by reducing cents to an across within
the limits for a great.
c. Provision for Self -Help in Grant Whenever self-help is
necessary, indicated, or desired, and the Conmanity Development
Department Considers that with or without its technical assist-
s and guidance, a pavperty owner will be able to perform the
work in aron ally acceptable and expeditious m it may
process an application for a rehabilitation grant that basis.
In such a case, the amount of the grant would provide funds to
pay for the materials and equipment to be installed by self-
help, as well as any additional funds needed to pay for other
rehbilltation work to be performed by a contractor. The amount
of the grant shall not include fads to pay the owner or m hers
of his family for their labor. Farther, the Commodity Development
Department must e'dercise good judgment and prudence so as to avoid
situation in which an owner could place himself in financial
difficulty through improper use, installation, or even destruction
of the materials and equipment purchased with grant funds. For
this reason, the Owner should understand that the proceeds of a
grant to pay the supplier for materials and equipment involved
in self-help will be disbursed from the rehabilitation escrow
account by the Community Development Department only after they
have been properly installed.
d. Coordination with Contractor when s of the rehabilitation
work is to be done through self-help, and the remainder is to
be done by the contractor. the Commodity Development Department
should assure that the work is done by each of them so asnot to
interfere with or jeopardize the other's work. In Cases where a
separation in the timing of the work is not feasible the Community
Development Dapart Went should urge the ower and contractor to
make their own arraugements on the timing, so that each may, do
his own work without causing any interference in the work to be
done by the other. In all ihstsucws, the Owner will be better
protected if work to be dons thrOdgb self-help is completed
before the contractor starts his work. Such completion will
help be avoid Claims by the contractor for extras or damaged
he may claim are caused by the self-help efforts, and All
sure tbat'wheh all the work is finished, the property will
secure
with Housing Code requirements.
-27-
M. Inspection of AeD bilitation Work
1. General This Section sets forth requiremeats for the inspection of
rehbilitation work financed in whole or in part with a rehabili-
tation grant.
2.. Responsibility For Making Iupectiour Inspections Of construction
work shall De performed by the Coity Development ➢epartm¢nt.
3. Ins ections fox Progress Payments and Final Payment Inspection of
construction work shall De made in accordance with the following:
a. Progress Payments A compliance inspection of the rehabili-
tation work shall be made before the Community Development
Department makes a progress payment on a contractor's invoice.
(1) Psament for Satisfactory Work If the inspection deter-
mSnes that work completed is satisfactory, the Community
Development Department ahall draw on the escrow account
a progress payment check pan ble to the owner and the
intended payee.
(2) Obtaining Corrective Action If the work Completed is
not in ardent with the construction contract £or a
shall
Semthe the Cof ny n Development Department
shall advise the owner o£ any noncompliance in the
yconsta
the contr work, or of an incorrect ion ed to ted
obtain, . by the contractor. The Owner shall es requested to obtain,
with assistance Pram the Commtion frty the contras Department,
appropriate corrective action ftom the contractor. u No
payment shall be made on constriction contract until the
contractor
rective hes satisfactorily completed the necessary
corrective action.
I. Final Inspection upon completion of the rehsbi]itatioi work
and receipt of the contractor's invoice containing his certifi-
cation of satisfactory completion of all the work in accordance
with the contract sal his warranty, the Covm,mity Development
Department shall inspect the completed work. .When the final
inspection determines that the work is satisfactorily completed -
in accordance with the contract, the Community Development
Departsent shall obtain from the contractor a release of liens,
and a copy of each warrenty due the owner for the work. After
receipt of a release of liens, fnoluding releases Prov all sob -
contractors and suppliers and a copy of each warranty, the
Comamity Development Department shall make final payment in
accordance with Section J.
4. Certification of Final Inspection After the Community Development
Department date lues that'tDe rehabS]itatiw work hoe been fully
and satisfactorily completed and the final inspection report obtained,
the Community Development Department shall prepare a Certification
of Final Inspection. The Certification of Final Inspection shall
include thenen and address of the applicant, the address of the
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property and a statement to the effect that final inspection hes
been made, all work hes been satisfactorily ccs leted in conformance
with the stated contract, and the property now meets the requirements
of the Housing Code of the City of Bangor.
The Certification of Final Inspection shall be signed and dated by
the person making the final inspection.
a. Distribution The Certification of Final Inspection shall be
distributed as follows:
(1) Signed original to the property owner.
(2) Signed copy retained by the Community DeveloHment
Department.
R. Project Areas Eligible for Grant Assistance
Tne Community Development Program Property Rehabilitation Grents sball be
made only with respect to a residential or residential portion of a mixed-use
property located within the following Cosmmuuty Development Progress project
areas:
1. Hancock -York NDP Area bounded and described in Section I of the
"Conmsnity Development Program Redevelopment Plan, Hancock -York
NDP" approved and adopted by the City Council an Jane 23, 1975.
2.., Thud -Main NCP Area bounded by Main Street, Buck Street, Tnisd
Street and Ceder Street.
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