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HomeMy WebLinkAboutReso 1977-8650~.' RESOLUTION N0. 8650 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE COMMUNITY HOUSING IMPROVEMENT PROGRAM POLICY MANUAL WHEREAS, the City Council has authorized the use of Community Development Block Grant funds for the rehabilitation of homes within certain areas of the City; and, WHEREAS, in order to carry out said Community Housing Improvement Program (commonly referred to as CHIP) in an orderly and efficient manner, it is deemed advisable to adopt a Policy Manual; and, WHEREAS, said Policy Manual encompasses the guidelines and parameters of the CHIP program. NOW THEREFORE BE IT RESOLVED that the Community Housing Improvement Program (CHIP) Manual be adopted as the City Council Policy with regards to said program. BE IT FURTHER RESOLVED that said Manual, a copy of which is attached hereto and incorporated herein, as though fully set forth, the same is hereby approved. Presented Yaul V. Des~'6chers, Director Community Development Approved as to form by ~. ,~ eorge Lindberg, City Att ey ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, this 7th day of June 197 ~ by the following vote, to-wit: AYES: Councilmen Cox, Hyde, Scott, Egdahl, Hobel NAYES: Councilmen None ABSTAIN: Councilmen None ABSENT: Councilmen None /~ Mayor of the City of ATTES City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) s s . CITY OF CHULA VISTA ) Vista I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chula Vista, California, DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of ,and that the same has not been amended or repealed. DATED (seal ) City Clerk CC-660 ~_ ~\ CITY OF CHULA VISTA COMMUNITY HOUSING IMPROVEMENT PROGRAM TABLE OF CONTENTS SECTION I INTRODUCTION A. Background ' B. Need C. Location D. Loan Programs • E. Income Determination F. Policy G. Civil Rights H. Loan Authority I. Loan Committee SECTION II HOh1 E REHABILITATION LOANS - OWNER OCCUPANTS A. Description B. Eligibility Requirements C. Applicant's Income D: Local Lender E. Agreements SECTION III HOME REHABILITATION LOANS - ABSENTEE OIr1NERS A. Description B. Eligibility Requirements C. Applicant's Income D. Local Lender E. Agreements SECTION IV STANDARD AND EMERGENCY REPAIR GRANTS A. Description 6. Eligibility Requirements for Standard Grants C. Eligibility Requirements for Emergency Grants PAGE 1 1 1 1 2 2 2 2 2 2 3 3 3 3 3 3 4 4 4 4 4 4 5 5 5 5 PAGE SECTION V PAINT AND CLEAN-UP GRANTS 6 A. Description 6 B. Eligibility Requirements 6 SECTION VI CITY DEPART~4ENTAL FUNCTIONS 7 A. Building and Housing Department 7 B. Housing Rehabilitation Administrator 7 C. Commercial Lender - Function, Role 7 SECTION VII PROCESSING HOME REHABILITATION LOANS AND EMERGENCY REPAIR GRANTS g A. The Process g B. Loan Applications 8 C. Work Write-Up 8 D. Contract Bid Procedures 8 E. Combination Standard Contractor and Borrower _ Self-Help Method 9 F. Appraisals and Lot Book Report 9 G. Proceed Orders 9 H. Disbursements 9 I. Loan Payments 10 J. Financial Reporting 10 K. Loan Security 10 L. Loan Default and Foreclosure Procedures 10 APPENDICES APPENDIX A INCOME ELIGIBILITY I APPENDIX B PROPERTY REHABILITATION STANDARDS II a,b,c,d,e,f APPENDIX C ELIGIBLE COSTS IN HOUSING REHABILITATION LOANS III PAGE APPENDIX D INCOME DETERMINATION - ELIGIBLE EXCLUSIONS IV APPENDIX E HOMEOWNER AGREEMENT NOT TO RAISE RENT V APPENDIX F HOMEOWNER AGREEMENT NOT TO SELL PROPERTY FOR ONE YEAR VI SECTION I - INTRODUCTION A. Background - The scheduled termination of Federally sponsored and locally administered neighborhood preservation programs has led America's cities into a renewed search for mechanisms that will enable them to continue the attack on declining neighborhoods and thereby preserve the quality of life within their communities. In addition, many cities that have never before needed or undertaken active neighborhood preservation efforts are beginning to examine their housing stock and as a preventative measure, establishing viable property rehabilitation programs. The passage of the Housing and Community Development Act of 1974 provides monies to cities and counties that will be utilized to implement a wide variety of local programs. Under Title I of the Act (Block Grant Program) a portion of the funds allocated to local governments may be set aside for property rehabilitation and neighborhood conservation. A recent housing study conducted by the City indicates that there are clearly recognizable signs of neighborhood decay occurring in Chula Vista. While this deterioration for the most part is relatively minor, Federal Department of Housing and Urban Development (HUD) studies reveal that in housing preservation, success is only rarely achieved when efforts are reactive rather than preventative; that is, those programs realizing the greatest rate of success and at the least cost have been those programs that have focused in on neighborhoods where decline had only recently started and where timely preservation efforts were initiated. Conversely, neighborhood preservation measures undertaken in areas where substantial decline has already occurred are seldom capable of realizing success without the infusion of vast sums of public monies. B. Need - Housing is a basic and indispensable ingredient in the fabric of a community, and when deterioration reduces the supply, all of its residents are adversely affected. This community recognizes the need for the en- couragement of new housing construction in all price ranges, but concurrently, it recognizes the need to maintain the la-gest possible number of existing dwelling units in a safe and habitable condition to meet and satisfy the constantly growing housing needs of the community. Rehabilitation of existing dwelling units is a valid and necessary means of maintaining our existing homes. In light of these factors, it is the desire of the City of Chula Vista to undertake a viable and effective code enforcement and property rehabilitation assistance loan program: the Community Housing Improvement Program (CHIP). C. Location - Loans will be restricted to within those areas (census tracts) ~ e~fied in the Community Development Block Grant application as having the greatest concentration of substandard or deteriorating dwelling units and/or lowest income. The concentration of rehabilitation assistance within a small geographic area during the early stages of the program will bolster the program's effectiveness and lend itself to program viability. It is hoped that this will facilitate the participation of the private business sector in local property rehabilitation and thus reduce the burden of local government having to carry out. the -1- program in its entirety. In subsequent years, loan assistance will be expanded into other areas of the City. D. Loan Programs - The following three programs have been designed to provide assistance to households who could not otherwise qualify fora regular conventional home improvement loan, to correct housing deficiencies by bringing their homes up to City housing standards: 1. Nome Rehabilitation Loans for owner-occupants and absentee-owners. 2. Standard and Emergency Repair Grants 3. Paint and clean-up grants. E. Income Determination - In calculating an applicant's income, all of~the household income from all sources of each and all members of the family residing in the household who are 18 years of age or over, except as noted in APPENDIX D, shall be considered. F. Policy - It is the policy of the City of Chula Vista that the Community Housing Improvement Program (CHIP) shall conserve and maintain older and deteriorating neighborhoods through the use of code enforcement under the Uniform Building Codes and State of California Health and Safety Codes. This policy is to be implemented through the use of low-cost home re- habilitation assistance from the Federal Government. G. Civil Rights - The City shall insure that that no person shall, on the basis of race, creed, sex, color, or national origin, be excluded from partici- pation in, or be denied the benefits of, or be otherwise subjected to discrimination under any activity or program funded in whole or in part with Community Development funds made available pursuant to this part. Housing and Community Development Act of 1974, Section 570.601. H. Loan Authority - Loans made under this program are subject to the availa- bility of fu~~ds and shall be exercised in accordance with the procedures and requirem;nts established by both the City of Chula Vista and the Federal Department of Housing and Urban Development that are in effect from time to time. In the event of any conflict or issue arising out of the operation of this program, the final authority shall rest with the City. _ _ _ _. I. Loan Committee- The Loan Committee will consist of the Mayor or designee, the Community Development Director or designee, the Director of Building and Housing or designee, and the~Director of Finance or designee. The Cornrnittee will schedule meetings so as to facilitate the processing of all applications for loans and grants. The Committee will review and pass judgment on all such applications. The cooperative lending in- stitutions shall not disburse funds unless written authority is received by the Loan Committee. Should any waiver of these regulations as con- tained in the CHIP Manual be given by the Committee, adequate documentation and reasons must be on file for the waiver. - 2 - SECTION II - HOPE REHABILITATION LOANS - OWNER OCCUPANTS A. Description - A maximum loan of up to $7,500 at an annual interest rate of 3.75 or 6% for a term of up to 15 years. Adequate property (hazard) insurance will be required for all loans. The loans will be secured by a deed of trust and will be due and payable upon the~sale or transfer of the subject property. The trust deed executed by the homeowner will be in favor of the lender. The interest rate is determined in accordance with APPENDIX A. B. Eligibility Requirements - In order to be eligible for a Home Rehabilitation.. Loan, the applicant must: 1. Reside in an eligible property rehabilitation census tract as identified in the c;ty's Federal Block Grant Application. 2. Be an owner-occupant of a dwelling. 3. Have a satisfactory credit record and demonstrate a willingness and the ability to repay the loan. 4. Receive approval from the City Housing Rehabilitation Administrator and the concurrence of the City Loan Committee. C. Applicant's Income - Applicants must qualify in accordance with APPENDIX A. The net income from any rental units of the property to be rehabilitated is the gross rental income. If the owner has owned the property for two (2) or more years, a deduction may be taken for mortgage principal and interest, mortgage insurance premiums, service charges, hazard insurance, real estate taxes, special assessments, maintenance and repairs, heat and utilities (if paid by owner), ground rent and other cash expenditures for the property such as advertising vacancies. If the applicant has not owned the property for two or more years, the income and expenditures can be estimated by the Housing Rehabilitation Administrator. D. Local Lender - The local lender will assist the City in screening applicants and upon the City's approval of a Nome Rehabilitation Loan application, will package, process and service the loan. The lender will make loans from their own funds, utilizing City Block Grant monies on deposit, as a guarantee against possible default. E. Agreements - (1) Applicants with rental units must sign an agreement with the City of Chula Uista not to increase the rent of the property being re- habilitated except as stipulated in the agreement (APPENDIX El, (2) Applicants must sign an agreement not to sell a unit (dwelling, property), which has been improved with CHIP funds, for at least one year. (APPENDIX F) -3- SECTION III - HOME REHABILITATION LOANS - ABSENTEE OWNERS A. Description - A maximum of up to $7500 for each individual structure at an annual interest rate of 3-3/4% to 6% for a term of up to 15 years for absentee owned dwellings. 6. Eligibility Requirements - In order to be eligible for a HRL, the applicant must: 1. Own residential units in an eligible property rehabilitation census tract as identified in the City's Federal Block Grant application. 2. Have a satisfactory credit record and demonstrate a willingness and ability to repay the loan. 3. Receive approval from the City Housing Rehabilitation Administrator and the concurrence of the City Loan Committee. C. Applicant's Income - Applicants must qualify in accordance with APPENDIX A. The net income from the rental units of the property to be rehabilitated is the gross rental income. If the owner has owned the property for two (2) or more years, a deduction may be taken for mortgage principal and interest, mortgage insurance premiums, service charges, hazard insurance, real estate taxes, special assessments, maintenance and repairs, heating and utilities (if paid by owner), ground rent and other cash expenditures for the property such as advertising vacancies. If the applicant has not owned the property for two or more years, the income and expenditures can be estimated by the Housing Rehabilitation Administrator. D. Local Lender - The local lender will assist the City in screening applicants and upon the City's approval of a Home Rehabilitation Loan application, will package, process and service the loan. The lender will make loans from their own funds, utilizing City Block Grant monies on deposit as guarantee against possible default. E. Agreements - (1) Applicants must sign an agreement with the City of Chula Vista not to increase the rent of the property rehabilitated except as stipulated in the agreement (APPENDIX E). (2) Applicants must sign an agreement not to sell a unit (property, dwelling), which has been improved with CHIP funds, for at least one year. (APPENDIX F) -4- SECTION IV - STANDARD AND EMERGENCY REPAIR GRANTS A. Description - Grants of up to~$1,000 are available for owner-occupants residing in one or two unit structures or a mobile home. They will be limited to the cost of correcting State Health and Safety Code violations and to property which reeds to be brought up to property rehabilitation standards (APPENDIX B). B. Eligibility Requirements for Standard Grants - In order to be eligible fora Repair Grant, the applicant/household must have all the following qualifications: (1) Be of an income as specified under Section I of APPENDIX A. (2) Be an owner/occupant of a single family dwelling, a two-family dwelling or mobile home. (3) Have existing within the subject home, conditions which are in violation of the Health anc~ Safety Codes of the State of California, and the Uniform Building Codes as determined by the City Housing Inspector (4) Be disabled and/or be 62 years of age or older. C. Eligibility Requirements for Emergency Grants - (1) Be of an income as specified under Section I, APPENDIX A. ' (2) Be an owner-occupant of a single family dwelling, a two-family duelling or mobile home. (3) Have existing within the subject home, conditions which are in violation of the Health and Safety Codes of the State of California with an immediate emergency need as determined by the City Housing Inspector. -5- SECTION V - PAINT AND CLEAN-UP GRANTS A. Description - Grants of up to ($150) will be made available on a limited basis to provide a means of improving the external appearnace of a home in need of exterior paint. Upon receipt of this grant, the home- owner will assure the City that the work to be done will be completed in a timely fashion. This money will be drawn from a special fund held by Community Development, Chula Vista. Grants of up to $300 will be made available for owner-occupants of a duplex. B. Eli ibilit Re uirements - In order to be eligible fora paint and clean-up grant, the app scant must have all the following qualifications: 1) Be of an income as specified under Section I of ABPENDIX A. . 2) Be an owner-occupant of a single family dwelling, a two family dwelling or mobile home. 3) Have a home in need of paint or clean-up (as determined by a City Housing Inpsector). _ 4) If the homeowner is unable to provide his or her own labor due to age or physical disability and if the homeowner so desires, the City will request the assistance of a local service club in having the home painted. The money will be paid for services or paint upon approval by the City Housing Rehabilitation Administrator and the Loan Committee. 5) Be disabled and/or be 62 years of age or older. - 6- SECTION VI - CITY DEPARTMENTAL FUNCTIONS A. Building and Housing Department - This department, coordinating with other departmen~s, as needs dictate will: (1) Survey neighborhoods within the applicable census tract, locating blighted housing. (2) Perform housing inspections. (3) Assist in the counseling of homeowners as to allowable renovations/ improvements, explaining code and specification questions. (4) Assist homeowners with procurement of bids and see that necessary permits are taken out. (5) Perform progressive construction inspections until rehabilitation is completed. (6) Ensure every applicant has a complete loan folder. B. Housing Rehabilitation Administrator - With the assistance of the Building and Housing Department, and the lender, will: (1) Contact and screen owners, determining the eligibility to participate in program. (2} Advise and counsel homeowners about the rehabilitation process and the allowable renovations and improvements. (3) Operate as a liaison between the homeowner, lender, contractor and the various City agencies to expedite the rehabilitation process. (4) Ensure that a complete loan folder is made up for each person applying for a loan. (5) Make final approval of loan with concurrence of Loan Committee. . (6) Assist the Building and Housing Department when the need arises in carrying out the functions listed under Section VI A, item 4. C. Commercial Lender - Function, Role - The commercial lender will: (1) Assist the City in the performance of credit checks, employment veri- fication, assets determination and other requirements necessary to determine the eligibility of applicants. (2) Originate loans utilizing City monies as a default reserve, and operate as disbursing agent for the City's rehabilitation loan monies. (3) Provide servicing of loans and collection of payments on notes. (4) Inform Housing Rehabilitation Administrator when loan is not bankable. -7- SECTION VII - PROCESSING HOME REHABILITATION LOANS AND EMERGENCY REPAIR GRANTS A. The Process - Begin with the initial contact of homeowners and/or tenants and proceed step-by-step to the final loan payments as follows: (1) Have a complete folder available for each applicant. (2) Made an appointment with the homeowner and/or tenant for an inspection by the City Housing and Building Inspector. (3) After the initial inspection, notify the homeowner by registered mail of any code violations and advise the homeowner of the availability and benefits of a Home Rehabilitation Loan or Emergency Repair Grant. If the homeowner shoa~s an interest, make an appointment with them and start filling out required forms in the applicant folder. The loan will then be subject to approval by the Loan Committee for forwarding to appropriate private bank. B. Loan Applications _ Upon completion of A(3) above, ensure a loan application blank from either the Bank of America (3-3/4% loan) or Balboa Bank (6% loan) and an income verification form is filled in completely and returned to the Housing Rehabilitation Administrator. C. Work Write-Up (1) A work write-up will be compiled, based on the property inspection report. All health and safety code violations will be listed first, followed by all items of work that are deemed substandard in accor- dance with Health an Safety Codes of the State of California and Uniform Housing Code and Property Rehabilitation Standards (Appendix B ). Those work items that are mandatory will be required to be completed by the homeowner and monies will be made available as per other sections of this manual. (2) If the total estimated cost'of the work exceeds the amount of the rehabilitation loan, the prospective applicant could receive, the City will eliminate or modify items in the work write-up as necessary to reduce the estimated costs; however, items of work having been identified as having to meet minimum codes shall not be eliminated. If the owner still desires the additional work done, he will be advised to perform sufficient work on his own to bring the remainder within the loan ceiling or to pay the difference. (3) A preliminary work write-up will not contain details which have no significant effect in cost, such as color, style or pattern. These details will be selected by owner. D. Contract Bid Procedures If the work to be done does not exceed $1,000, the CHIP Administrator or the homeowner carp contact any journeyman who is licensed with the City of Chula Vista and request a written cost for the work to be completed. When the - 8- homeowner is satisfied with the selection-of the person/firm awarded the job, that person/firm will be notified to start work. Upon satisfactory completion (receipt of Completion Notice), and with concurrence of homeowner, CHIP Administrator and Community Development Director, the person/firm doing the work will be paid in full. When the cost of work desired exceeds $1,000, at least three (3) qualified contractors will be invited to did. "Qualified" meaning those contractors who are licensed with the State of California and Chula Vista. If the homeowner desires to get their own bids, that is their prerogative. All bids will be requested to be returned within 20 days. Upon receipt of the bids, the homeowner shall make the selection of the contractor and sign the contract agreement. If only one bid is received and the homeowner is happy with that bid, then the job will be awarded to that contractor. Where all or part of the rehabilitation work is to be performed by the homeowner, then the homeowner should submit, to the CHIP Administrator, a list of the materials and approximate cost for those items to be completed by the homeowner. Only material will be reimbursable - not the labor of the homeowner or any assistant/handyman. E. Combination Standard Contractor and Borrower Self-Help Method - In this method, the borrower will decide what work he can perform. For example, painting, roofing, minor electrical repairs, and what work will have to be performed by outside contractors. The financial condition of the applicant and/or his ability to perform work by himself vrill determine what _ portion of the job will be done by the borrower and what portion will be done by the contractor. This method will be utilized to keep the total cost of t~ir loan at a minimum. F. A raisals and Lot Book Report - Balboa Bank does not require a property appraisal for under 2,500 but will order, from an independent appraiser, an as-is appraisal for loans over $2500. The Bank of America does not require a property appraisal for under $2,000 but will accept a "CURBSTONE" appraisal from the City Building and Housing Inspector for any request over $2,000. A "Lot Book" report will be ordered by the lender. G. Proceed Orders - The applicant will be assisted in issuing proceed orders for construction/rehabilitation work by the lender and City staff. The homeowner should be cautioned against signing any rehabilitation contract prior to approval of lender. H. Disbursements - (1) Standard Contractor Method. Progress payments shall be limited to not less than 2 but not more than 4 payments to cover 90% of the payments and one final payment of 10%. Upon completion of the work and upon completion of the final inspection conducted by the City Housing Inspector, the lender will be notified to prepare and record a Notice of Completion. The final payment will NOT be made until all work has been completed and accepted and the Notice of Completion has been on file fora period of (35) days. (2) Self-Help Method. Upon approval of the loan, the borrower will receive advancements to cover the costs of materials consistent with the cost estimate and work write-up. The homeowner shall prove to the satis- faction of the Building and Housing Department that he/she shall have the ability to perform the tasks they wish to undertake. -9- The timing of the disbursement of funds will be on a progress-of-work basis. (3) Combination Standard Contractor and Borrower Self-Help Method. Where rehabilitation is to be achieved utilizing both a contractor and the homeowner to conduct repairs, the two aforementioned disbursing pro- cedures will be utilized. (4) Excess Funds. Upon completion of all rehabilitation work specified in the contract, any remaining funds or surplus will be credited to the borrower's loan account to be applied on the loan's principal. (5) Depending upon the type and level of rehabilitation to be conducted and the amount of the loan, the City and lender have the option to utilize a fund control for the disbursement of monies to the con- tractor and/or suppliers to cover the costs of labor and materials. I. Loan Payments - The lender will advise the borrower as to where and when all payments are to be remitted. J. Financial Reporting - The lender will, on a monthly basis, provide the City with financial statements indicating the status of all outstanding loan commitments. K. Loan Security - Every property receiving monies under the CHIP program shall be secured by a Deed of Trust covering the real property that is being rehabilitated. L. Loan Default and Foreclosure Procedures - In the event of a default, and after a collection period to be negotiated bet~veen the lender and the City, the lender will draw upon the security deposited by the City and the City shall become the holder of the trust deed and the note. At such time, the City shall refer the collection on the note to the established loan committee and the City Attorney pursuant to the guidelines established by the City Council. -10- APPENDIX A CITY OF CHULA VISTA COMMUNITY HOUSING IMPROVEMENT PROGRAM INCOME ELIGIBILITY SCHEDULE I. Qualifications for 3-3/4% Loans Terms to 15 Years Per Year Income No. of Persons (Not More Than) 1 $ 9,900 2 12,000 3 14,150 4 14,150 5 16,250 7-10 18,350 II. Qualifications for 6% Loan Terms to 15 years - NO INCOME LIMIT III. DEFERRED LOANS MAY BE MADE TO SENIOR CITIZENS ( over 62 years of age) and to persons who are permanently disabled head of household and are owner/occupants. This loan does not have to be paid until both spouses have died and/or there is a title change at which time the loan must be paid in full with no interest or accrued interest owed. -I- APPENDIX B "" PROPERTY REHABILITATION STANDARDS (PRS) When the following structural and maintenance violations present a dangerous or potentially dangerous condition which jeopardizes the health and safety of the occupants and the longevity or fire safety of a structure, rehabili- tation is desirable to restore the structure to a safe, sound and sanitary condition. In order to insure uniform rehabilitation, it is the intent of the City to utilize the following criteria as a guide to property rehabili- tation standards: I. GENERAL ACCEPTABILITY CRITERIA A. General. These general acceptability criteria apply to all existing living units in the Neighborhood Preservation District (NPD) areas. B. Local Codes and Regulations. The minimum standards set forth herein above have been established to accomplish certain basic objectives for rehabilitation purposes and shall not be construed as relieving the property owner or the contractor of his responsibility for com- pliance with any other local ordinances, codes and regulations. C. Service and Facilities 1. Utilities shall be independent for each property without dependence upon other properties. 2. Independent facilities shall be provided for each living unit except that common facilities such as laundry and storage space or ~~eating may be provided for each property. 3. Eacn building and each living unit within the building shall contain provisions for the following: a. A continuing supply of safe potable water. b. Sanitary facilities and a safe method of sewage disposal. c. Heating adequate for healthful and comfortable living conditions. d. Domestic hot water. e. Electricity for lighting and for electrical equipment used in the dwelling. f. Provisions for the removal of trash and garbage and its sanitary storage pending removal. -IIa- D. Access 1. Access to the property. Each property shall be provided with vehicular access to and from the property at all times by an abutting public or private street. Private streets shall be protected by a permanent easement. 2. Access to building wa}ks and steps shall be provided for all weather access to the building and constructed so as to provide safety and reasonable durability. E. Dilapidated or Blighted Structures. All dilapidated portions of existing properties or blighted structures which are not economically repairable shall be removed. II. SITE CRITERIA A. Site Criteria. To develop the individual site or group of sites so that obsolescence is overcome and the development is appropriate and an asset to the neighborhood in which it is located. B. Site Improvements. The open space of each property shall provide for: 1. The immediate diversion of water away from buildings and disposal from the lob. 2. The prevention of soil saturation detrimental to structures and lot use. 3. Where needed, appropriate paved walks, parking areas, driveways, exterior steps and landscaping. C. Objectives. To assure a living unit which provides for a healthful environment and complete living facilities arranged and equipped for a suitable and desirable living condition commensurate with the type and quality of the property in question. To provide each living unit with space necessary for suitable living, sleeping, cooking and dining accommodations, laundry and sanitary facilities. D. Room Sizes. Assure that room sizes are in~accordance with Uniform Housing Code Section 503(a) and (b). E. Closets and General Storage. Clothes closet space should be pro- vided within bedrooms or conveniently located nearby. F. Exterior Doors. Exterior doors shall have safe locks. G. Attic. Attics and underfloor areas shall have proper access. III. UNACCEPTABLE FEATURES. Features which are unacceptable in any property, and compromise one or more health and safety code violations. A. Electrical Wiring -IIb- 1. Exposed live electrical conductors. 2. Over-fused circuits. 3. Extension cords used as integral part of system. 4. Extension cords exposed to unusual wear. 5. Lack of grounding or improper grounding. 6. Conductors which have deteriorated or damaged insulation. 7. Improper clearance of overhead conductors. 8. Inadequate water-proofing of system. 6. Plumbing 1. Cross connections. 2. Lack of, inadequate or damaged fixtures, traps, and/or vents. 3. Leaks in system (gas, water, or sewage). 4. Lack of an approved sewage disposal system. _ 5. Lack of approved gas shutoff valves. 6. Nonapproved type fixture and gas appliance supply connectors. 7. Anon-potable water supply. 8: Lack of hot and cold water supply to fixtures. C. Foundation 1. Insufficient number or size of screened foundation vents. 2. Missing sections of foundation material. 3. Decayed foundation boards or wood foundation underpinning. 4. Surface spalling or cracks in foundation walls. 5. Untreated wood in contact with ground. D. Fire Safety 1. Inadequate exits. - 2. Accumulation of flammable debris in building. 3. Accumulation of trash, debris, and weeds - exterior. 4. No smoke alarms or other fire alarm. -IIc- E. Mechanical Equipment 1. Damaged or deteriorated space heater fire box. 2. Improper appliance connector. 3. Unvented type space heater. 4. Improper or non-existent gas appliance fuel shutoff valve. 5. Vents serving gas-fired appliances are missing, damaged, deteriorated, or improper clearance from combustible materials. 6. Temperature and/or pressure relief valve inoperative or missing on water heater. 7. Nonapproved or inadequate space heating system. 8. Inadequate combustion air for gas-fire appliances. F. Floor Structure 1. Excessive deflection. 2. Structural members (floor joists, girders, subflooring) excessively damaged by termites and/or fungus. 3. Absorbent flooring in area of bathroom fixtures. 4. Torn carpet or missing the flooring. G. Roo f Structure 1. Missing, decayed, or damaged roof sheathing, bracing members and roof rafters. 2. Roof covering deteriorated or damaged. 3. Excessive deflection of ridge or any portion of system. 4. Inadequate roof flashing around vents or fireplaces allowing water intrusion. 5. Deteriorated fascia boards. H. Exterior Walls 1. Exterior covering damaged or missing to a degree that the walls, windows, or doors do not protect occupants from the elements. 2. Walls lean, list, or buckle due to structural damage or failure. 3. Damaged, deteriorated, or missing mortar. 4. Parapet and appendages on buildings erected prior to 1933. -IId- ~'. _ . 5. Broken or missing window glass, doors, and screens. 6. Weathering of exterior wall covering due to lack of paint. I. Interior LJalls and Ceilings 1. Walls and ceilings that lean, list, or buckle. 2. Loose, crumbled, or missing interior wall and ceiling coverings. 3. Walls and partitions loose due to improper anchorage. 4. Filthy, torn, or peeling wall covering. J. Stairways 1. Risers in excess of 8 inches, run less than 9 inches, or variance exceeds 3/16" with other riser or tread in same system. 2. Damaged, loose, or missing handrails. 3. Damaged, deteriorated, missing, or improperly anchored structural supporting members. 4. Damaged tread covering or treads which do not have non-skid surfaces. K. Light and Ventilation 1. Inadequate natural or artificial lighting. 2. Absence of or improperly functioning windows. L. Various 1. Lack of general environmental sanitation of external premises. M. Kitchen Equipment 1. Lack of stove or refrigerator. Replacement of existing stove ~r refrigerator if existing equipment is unsafe or unsanitary. N. Insulation 1. Lack of insulation in walls and attic. - 0. Items not covered above but which are in violation of the Uniform Housing Code. IV. STANDARDS FOR MATERIALS AND PRODUCTS Specific requirements of new materials and products used as replacements or additions to dwellings being rehabilitated, will be governed by the applicable codes currently utilized by the City of Chula Vista. In the rehabilitation of older structures, materials and methods shall not be _ limited to current code restrictions. V. INSPECTIONS Inspections will be conducted throughout the Neighborhood Preservation Districts to locate substandard dwelling units. As substandard units are located, environmental health, safety and structural inspections will be ' made of the exteriors and interiors to determine compliance with City and .State Health and Safety Codes and Uniform Building Codes. As violations or a non-compliance with the codes are determined, an official notification will be issued by the City to the property owner.. The notification will contain a time limit in which the violations must be corrected, and pro- vides for an appeal by the owners or leaseholders. Upon completion of the repairs undertaken to correct the cited violations, a final inspection will be made and a Certification of Completion issued. -IIf- APPENDIX C ELIGIBLE COSTS IN HOUSING REHABILITATION LOANS ~ Eligible Costs: A. Loan and Documentation. A rehabilitation loan may include funds to cover certain costs and charges related to processing the loan application and to obtaining security for the loan. 1. Title reports. 2. Recording and filing fees. 3. Loan preparation and servicing fees. B. Building Permits and Related Fees. A HRL Loan may provide funds to cover the cost of building permits and related fees that are required to carry out the proposed rehabilitation work. However, since the construction contract documents will require the contractor to pay for them, this cost will ordinarily be included in the contract amount. C. Architectural Services. In some unusual cases where conditions merit, an applicant may employ a private architect to prepare plans and drawings for the rehabilitation of his property (requires approval by the City's Building and Housing Department). D. Improvements. All improvements that correct PRS deficiencies, Health and Safety or Building Code violations are eligible. In addition, general .,~ improvements, with the concurrent approval of the Housing Rehabilitation Administrator and Community Development Director will be allowed. E. Items Includable as General Improvements. Rehabilitation work to generally improve the condition of the property consists of improvements to the home beyond those provided for under items (a) through (1) under Part III of Appendix B, and health and safety code minimum standards. Such general improvements may include additions, enlarc~ments, renovations, and re- modeling such as: enlargement of rooms or garages; the finishing of spaces within the property such as an attic, porch, or basement and remodeling kitchens. The repair or purchase and installation of a kitchen stove and/or refrigerator is acceptable if there is no such equipment in the dwelling unit, or if the existing equipment is unsafe or. unsanitary because of its basic physical condition. Smoke alarms will be considered a required item for anyone accepting a loan or grant. F. Items Not Includable as General or Other Improvements. Acquisition of land, conversion of property so as to change its use or number of units, new construction, substantial reconstruction, the utilization of materials, fixtures, equipment or landscaping of a type or quality which exceeds that customarily used in the locality for properties of the same general type, appliances not required by PBS, or the purchase, installation, or repair of furnishings or trade fixtures are not includable costs. G. Conformance with PRS. After rehabilitation, the property must, at a minimum, meet with PRS. H. Demolition. The cost of demolition of building in the applicable area will ~e consicTered an allowable item. -III- ~~ APPENDIX D INCOME DETERMINATION - ELIGIBLE EXCLUSIONS 1. The social security monthly educational benefits to the children of an individual entitled to disability or old age insurance benefits provided that the child is: a. unmarried b. under age 18 c. a full-time student under age 22 2. The income of a dependent child or children as defined by the United States Internal Revenue Service. 3. The annual amounts paid for child support will be excluded from gross annual income provided that: a. the child support is required by court order ~ b. child support payments required must be paid and received regularly 4. Foster-care payments 5. That income derived from occasional overtime work and other unusual income not normally received. -IV- APPENDIX E AGREEMENT DATE I, do hereby agree that I will not increase the rent on the property address and lot number except to cover any increase in taxes, insurance premiums, heating and utilities (if paid by owner), service increases or any repairs needed with monies not from rehabilitation funds until the loan is paid in full, except reasonable expenses initially not to exceed amount on amortized loan. Signature Property Owner/s Signature Housing Rehabilitation Administrator DATE -V- APPENDIX F I, DATE do hereby agree that I will not sell the unit (dwelling, property) located at address and lot number for at least one year from this date. Signature Property Owner Signature C m~nistrator DATE -VI-