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269119 WHITE - CITV CLERK CO11flC11 ►�/�'V�7�:�� PINK - FINANCE GITY OF SAINT PAUL CANARV - DEPARTMENT � BLUE - MAYOR _ _ Flle NO. ncil Resolution Presented By Referred To Committee: Date Out of Committee By Date WHEREAS, the Council of the City of Saint Paul did approve the establishment of the Saint Paul Rehabilitation Loan and Grant Program Concept and Guidelines on November 21 , 1974, Council File No. 264630; and WHEREAS, the Council has approved various amendments to said program's concepts and guidelines on December 23, 1975 (Council File No. 266548), January 15, 1976 (Council File No. 266641 ) , May 28, 1976 (Council File No. 267262), August 26, 1976 (Council File No. 267774), December 16, 1976 (Council File No. 268293) and April 26, 1977 (Council File No. 268973); and WHEREAS, a number of additional changes were approved by the Mayor's Rehabilitation Advisory Committee and the Board of Commissioners of the Housing and Redevelopment Authority; now, therefore, be it RESOLVED, that the Council of the City of Saint Paul , upon the recommendation of the Mayor, does hereby further amend the Rehabilitation Loan and Grant Program Concept and Guidelines as indicated on the attached copy of the guidelines. COUNCILMEN Yeas Nays Requested by Department of: Butler Hozza In Favoc • Hunt �,��'�_ � Levine A ai n s t B��' — '�� '. Roedler � g Sylvester Ted I�Y 2;4 �9rf Form Approved by City Attorney Adop y Counci . Date ertified ed by ci cretary BY U !�-�� , � �Y_2'6 �9 ' Appr d by Mayor for SubmCs ion'� o Cou�cil Ap o by Mavor: gy ; By �- QUBLISHED JUN 4 1977 ° �' �, � �� 1 CITY OF SAINT PAUL REHABILITATION LOAN AND GRANT PROGRAM CONCEPT AND GUIDELINES Approved by City Council Resolution No: 264630, November 21 , 1974, as amended by: � Council File No. 266548, December 23, .1975 Council File No. 266641 , January 15, 1l76 Council File No. 267262, May 28, 1976 Council File No. 267774, August 26, 1976 Council File No. 268293, December 16, 1976 . Council File No. 268973, April 26, 1977 � ' T • ' > � , • CITY OF SAINT PAUL REHABILITATION LOAN AND GRANT PROGRAM CONCEPT AND GUIDELINES Approved by City Council Res�lution No. 264630, November 21, 1974, as amended. Definitions ' For purposes of these guidelines, the terms defined in this section have the meaning ascribed to them. 1. Housing related expenses. Means the normal and ordinary expenses related . to .homeownership, including, but not limited to, principal and interest paid on any outstanding indebtedness, including the principal and interest paid on a `City rehabilitation loan, used to finance the purchase, construc- tion, improvement, or rehabilitation of residential housing and related . taxes, special assessments, insurance, maintenance costs, utility expenses and the like. ' 2. Neigliborhood rehabilitation project plan. P4eans a plan developed in whole or part by a neighborhood organization or association or a nonprofit or redevelopment corporation for the concentrated rehabilitation of a specified neighborhood area within the City of Saint Faul and approved by the PZannin�.; Commission and City Council. For further explanation see Appendix I. ' 3. Nei�hborhood rehabilitation program. M2ans a program, prepared and/or considered by the City�Planning Department and approved by the Planning : Commission and the City Council, for concentrated rehabilitation within specific geographic areas. Such a prograrn may be based in whole or part on approved neighborhood rehabilitation project plans. For further explar�ation, see Appendix I. . 4. Authority. Means the Housing and Redevelopment Authority, as designated liy the City Council, pursuant to Minnesota Laws, 1974, Chapter 351, Minn: Stat. 462.445 (4) (2) and 462.581 (8) , and other provisions of Minn. Stat. 462.415 to 462.711 to cooperate with and act as an agent for the City of Saint Paul in implementing, administering and carrying out the provisions of the City of Saint Paul rehabilitation loan and grant program as authorized by and consistent with Chapter 351 and these program guidelines as adopted by the City Council. . , S. Qwner-Occupant. Means persons or families who are� the fee owners or contract for deed purchasers of eligible properties and who occupy and, pursv.ant to Minn. Stat. Ch. 273, homestead such property. 6. Persons and families of low and moderate income, rieans those natural persons ' or families whose income is within the following income limits and categories. For purposes of this Act, families shall include nonblood related adults and tenant cooperatives. . 4/77 , . , . .� `�i . � . . . . .�•� . ANNUAL ADJUSTED GROSS .HOUSEHOLD INCOME�CATEGORIES . , . . Low Interest � Middle Interest Upper Interest • Fanily Size Loare (49�.)� Loan -(6�) Loan (8%) . - � � _(Low IncomeZ (Low-Moderate Income) (Moderate Income) � 1 person up to $ 7,200. � $ 7,201 to $13,650 � $13,651 to $14,500 2 persons � up to $ 8,750 $ .8,751 to $13,650 � � $13,65I to $15,000 ' . 3 pexsons up to $10,000 $10,001 to $13,95Q $13,95I to $15,540 4 persons � up to $10,300 $10,301 to $14,250 • $14,251 to $16,000 5 persons � up to $11,850 $I1,851 to $14,550 . . $14,55I to $16,50Q 6 persons up to $12,150 $12,Z51 to $I4,850 $14,85� to ,57,7,fl00 7 persons up to $12,500 � $12,501 to $I5,150 $15,15I to $17,500 8 persons up to $12,800 $12,801 to $15,45Q' $15,45Z to 9 persons up to $13,100 $18,000 � 10 ersons $x3,Z01 to $15,750 $15,75I to .$18,500 p (or �ore).; up to $13,400 $].3,401 to $16,050� $16,051 to $1.9,000 b. Notwithstanding the above, those persons or families selected as � . purchasers under the Czty of Saint Paul Urban Homesteadiag Progra�n , shall be eligible for a Iow interest loan. . - * 7. Inco�e. Means for purposes of these guidelines the term "annual adjusted gross household income" (see definition 6 above) and includes the gross annual income from all sources and before taxes or withholding of (1) the ap�licant; (2) the members of the applicant's family who are over eighteen years of age and are owner-occupants of the eligible property; (3) the applicant's spouse if he or she is residing in the elioible property. The applicant's family includes the applicant anal any other person or persons related by blood, marriage, operation of the law who reside in the eligible . property; non-blood related adults who reside with applicant in a dwel�].ing unit contained in the eligible property; and all persons who, by operation of law, are members of a tenant cooperative and reside in the eligible , property. If ownership of the eligible property rests in more than one person the applicant is each owner and family. The applicant's income, _ therefore is the sum of the family incames of all applicants, a:�d includes - funds contributed or paid to the family, on a regular basis, by a family member who is over eighteen years of age, but who does not have an ownership interest in the eligible property. Excluded from Income is : a: The income of any family member (other than the head of the household � or his or her spouse) who is under eighteen years of age or is full time student; b. The first $300 of the income of secondary wage 'earners other than those. included in paragraph 7a above; ' c. An amount equal to $300 for each member of the family residing in the household who is under eighteen years of age or who is eighteen years of age or older and is disabled or handicapped and is not a full-t�me wage earner, as determined by the Authority, or a full-time student. � - do Nonrecurring income, food stamps and other non-monetary income, as determined by the Authority, and payments to volunteers under the "Domestic Volunteers Service Act of 1973," Public I.aw_ 93-113, October 1, 1973; � e. Five per centum of the pe�son or family's gross income (ten per centum in the case of elderly persons or families); � - 2 _ . - � • f. Such extraordinary medical or other expenses as the Authority approves � for exclusion including, but not limited to, all expenses incurr�� working parents or parent for child care in a licensed child car ` ��"`- _ facility; g. An amount equal to the sums received by the head of the household or his or her spouse from, or under the direction of, any public or private , nonprofit child placing agency, for the care and maintenance of one or more persons who are under eighteen years of age and were placed in the household by such agency. 8. Eligible loan recipients. Means those persons or families of low and moderate income who are owner occupants of eligible properties and meet other requirements and qualifications for a City rehabilitation loan as set forth in these guidelines or those persons or families selected as purchasers under the City of Saint Paul Urban Homesteading Program. 9. Eligible grant recipients. Means those persons or families of low income who are owner occupants of eligible properties and meet other requirements and qualifications for a City rehabilitation grant as set forth in these guidelines. � 10. City rehabilitation _loan. Means a loan made to eligible loan recipients for eligible improvements and/or refinancing of existing indebt�edness under the City rehabilitation loan and grant program and includes loans financed by "leveraging" and the use of bond proceeds, but does not include those loans financed by "reserving." 11 . City rehabilitation grant. Means a grant to an eligible grant recipient for eligible improvements under the City rehabilitation loan and grant program. � 12. �Eligible properties. Means residential housing and real property which contains e�ght dwelling units or less; meets the requirements set forth in the "Eligible Properties" section of these guidelines; and is owned and occupied by an eligible loan or grant recipient. 13. Eligible improvements. Means the repairs, rehabilitation, reconstruction, conversions, mo ern�zation, replacement, remodeling, alterations or improvements to eligible properties which are authorized to be made under a City rehabilitation loan or grant as set forth in the "eligible improvements and expenditures" section of these guidelines. � *14. *Immediate health and safety hazards. Means those violations of applicable codes which materially and immediately endanger the health and safety of occupants of the building involved. Such violations include, but are not limited to: � a. Heating systems that are unsafe due to: burned out or rusted out heat exchanges (fire box) ; burned out, or plugged flues; not being vented; being connected with unsafe gas supplies; or being incapable of adequately heating the living space. *Further defined bv the Communitv Services Division of Housing and Building Enforcement in a memorandum dated April 9, 1976, attached as Appendi�� -3- " �� . b. Water heaters that are unsafe due to: burned out or rusted out heat exchanges (fire box); burned out, rusted out, or plugged flues; not being vented; being connected with unsafe gas supplies; or lack of temperature and pressure relief valves. c. Electrical systems that are unsafe due to: dangerous overloading; damaged or deteriorated equipment; unproperly tapped or spliced wiring; exposed uninsulated . wires; distribution systems of extensi.on cords or other temporary methods; ungrounded systems, ungrounded appliances in contact with earth. � . d. Plumbing systems that are unsanitary due to: leaking waste systems, fixtures and traps; lack of a water closet, lack of washing and bathing facilities; or cross connection of pure water supply with fixtures or sewage lines. e. � Structural systems, walls, chimneys, roofs, foundations, ceilings, and floor systems, that �will not safely .carry imposed loads. f. Refuse, garbage, human waste, decaying vermin or other dead animals, animal waste, other materials rendering it unsanitary for human occupancy, incl•,�dino lack of ligh or air. � g. Infestation of rats, insects, and other vermin. h. All existing handrails that are not permanently and solidly mounted to provide safe service. i. Lead paint that is peeling, chipping or exposed in areas that may be hazardous to children and others. j. Conditions of windows, doors and other electrical, mechanical and structural items that are condusive to fire and safety hazards. k. "Conditions of or omissions concerning an eligible property, owned or occupied by handicapped persons, which constitute an architectural barrier to such handicapped persons and/or which limit the accessibility of such handicapped ' persons to the property." 15. General Improvements. Shall only include additions, enlargements, renovations ' or remodeling of existing rooms or structures, interior and .exterior painting, decorating and outdoor remodeling, or the provision for a garage or fence; and the finishing of spaces within the property such as an attic,. porch or basement. The addition of a complete new function or room will only be �ermitted where � � required by Code. Except as provided above, general improvements shall not inelude materials, fixtures, equipment or landscaping of a type or quality. which exceed that customarily used in the locality for properties of ttte same general Cype as ' the property to be rehabilitated. General improvements shall also include kitchere equipment of a permanent nature, including stove and refrigerator and the.acquisition of contiguous property, necessary to provide an adequate sit�e for the structure. * I6. Codes. Means applicable state, county or city health, housing, building; fire prevention, housing maintenance, and zoning codes and other public standards applicable to housing, as determined by the City Council :and the 9uthority. _ 4 _ . . - , - < `For purposes of determining when the conditions of or omissions concerning an eligible property constitute a �'violation of applicable � codes which materially and immediately endanger. the health and safety of ` handicapped occupants of the building involved" as those terms are used in Definition 14 and these guidelines, codes shall include the standards specified in the "American National Standard Institute Inc. 's, Specifications for Making Buildings and Facilities Accessibl�e to and Usable by, the Physically Handicapped, ANSI A 117.1-1961 � (Reaffirmed 1971) and amendments and supplements thereto. 17. Levera�ing. Includes, for purposes of these guidelines, the terms "leverage" or "leveraged" and refexs to the process, whereby the Authority borrows monies from private lenders or the Minnesota Housing Finance Agency .(herein- after I�E'A) to be used to make City rehabiiitation l,oans and/or for refinancing of; existing indebtedness under the City rehabilitation loan and grant program. � 18. City rehabilitation loan and �rant pro$ram. For purposes of these guide- lines refers to the City of Saint Yaul rehabilitation loan and grant program � � authorized by Minnesota Laws, 1974, Chapter 351. 19. Reservin�. Includes, for purposes of these guidelines, the terms "reserve" or "reserved" and refers to the process, whereby the Authority acting on behalf of the City of Saint Paul and with City Council approval, requests that a portion of rehabilitation funds, available through the I�TE'A home improvement loan and grant prograra, be set aside for use in a specific geographic area. Such geographic area may include the entire City of . Saint Paul and/or specific neighborhood areas identified as part of an approved neighborhood rehabilitation program. 20. Bond vroceeds. Means those monies, to be used to assist in financing the � City rehabilitation �loan and grant program and available as a result of the issuance and saTe of general obligation bonds of the City of Saint Paul, pursuant to Minnesota Laws, 1974, Chapter 351. 21. Redevelopment Corporation. Means limited dividend corporations created pursuant to Minn. Stat; 462.591 to 462.711. 22.. Contract. Means a written agreement to perform eligible improvement work. � 23. Dwellin� Unit Means a rornn or Qroup of rooms located within an eligible �ropertv and forming a single habitable unit with facilities which are used pr. intended to be used for living, sleeping, cooking, and eating. * 24. MHFA. Means the Minnesota Housing Finance Agency, as authorized by Minnesota Statutes Chapter 462A to implement, administer and otherwise � carry out the provisions of the State rehabilitation Loan and grant program as authorized by and consistent with Chapter 462A and imQlementing federal, : state and local rules, regulations, procedures, guidelines and agreements. * 25. �A Rehal�ilitation Loan and Grant Program. For purposes of these guidelines refers to the Minnesota Housing Finance Agency or state rehabilitation loan and grant program authflrized by Minnesota Statutes, Chapter 462A. * 26. MHFA Rehabilitation Loan. Means a loan under the rII-iFA rehabilitation loan and grant program to eligible applicants for eligible improvements as those terms are defined and used in Minnesota Statutes, Chapter 462A; implementing NII-IFA and federal rules, regulations, procedures and guidelines; and agreements between the MHFA and the Authority entered into pursuant to these guidelines and law. - 5 - ' ' �Eligible Persons and Families 1. To be eligible for a City rehabilitation loan, applicants must be persons or families of low or moderate income; owner-occupanta of residential housing; must have the ability to repay the loan; and are "acceptable credit risks as determined by the Authority or its deaignee. Applicants with . poor credit histories may be eligible if screening show sufficiently extenuating circumstances in an applicant's credit behavior and income patterns to give reasonable assurance of ability to repay the loan. 2. To be approved for a City rehabilitation loan or grant, the Authority must first of all determine that the applicant is unable to afford and . secure rehabilitation funds from other sources, including private lender programs at market interest rates, the Federal 312 and 115 rehabilitation lc�an and �rant pro�;rams and the Minnesota }lousing Finance Agency rehahilitation loan and grant program. This determination shall be . I�ased on tt�e availability. of reliabilitation funds from such other sources; the eligibility of the applicant for such funds; and shall be further based on sufficient data showing that a rehabilitation loan, for comparable correction of code violation work, from other sources, would result in the applicant's housing related expenses being beyond 25% of his or her income. If it appears that an applicant is able to afford and secure rehabilitation funds from other sources, the Authority shall refer the applicant to the appropriate source or sourees. After referral, if'an otherwise eligible applicant can demonstrate that he or she is not able to secure rehabilitation funds from other sources, such applicant may then be approved for a ioan and/or grant. 3. In the event an applicant for a City rehabilitation loan and/or grant . shall be rejected, the Authority shall furnish a written statement to the applicant specifying the reasons for such rejection and the applicant's right to an appeal and independent review and determination if the ap�li- cant feels he or she is aggrieved by the decision and/or application of these guidelines and the manner and time in which to do so. Eligible Properties : 1. The property must not be a nonconforming use under the City's Zoning . Ordinance and the use must be permitted under an Urban Renewal or Development District Plan if located in such an area. 2. A property shall not be eligible if it has been identified for public � . acquisition for which funding is presently available unless that property is being formally re-examined for potential rehabilitation, in which case waivers shall be considered. Upon request by the owner of such property � � and •�ith the consent of the acquiring agency, the property may be formally reexamined for potential retention in which case waivers shall be also • considered. Properties which are identified for conditional or possible acquisitions are eligible. 3. The property must be at least ten years of age or in need of repair to correct damages resulting from a natural disaster. 4. After rehabil,itation, the property must be insurable through an established o.iblic or private insurance program. _ 6 - . . . ---. . .....__....._. . .. • Eli�ible Improvements and Expenditures 1. City rehabilitation loans shall be made primarily to rehabilitate eligible properties so that they are in campliance with applicable code requirements. 2. Bringing an eligible property into full compliance with applicable codes shall be required as a condition to making a �City rehabilitation loan or grant, except if an applicant cannot afford to correct all code violations. This determination shall be based on sufficient data showing that a City . rehabilitation loan and grant, to the extent an applicant is eligible, for correction of all code violation work and eligible general improvements, allowed in item �k5 below, would result in the applicant's housing related . expenses being beyond 25% of his or her income. 3. As a condition for receiving :financial assistance under the City rehabilitation loan and grant program or any other public program, including, but not limited to, the Federal 312 and 115 rehabilitation 16an and grant program and the Mt�A rehabilitation �loan and grant program (including funds "reserved" by the Authority), administered in whole or in part by the A�thority, the applicant shall call upon the Authority in conjunction with Department of Community : . Services Housing and Building Code Division to provide an inspection and written evaluation assessing and outlining all violations of applicable codes, necessaxy to be corrected if the property is to be in full compliance with applicable codes and further assessing and outlining, when requested: by the apglicant, other repair, rehabilitation or improvement items that are eligible improvements under the City rehabilitation l.oan and grant program or any other public program admi.nistered by the Authority. This inspection and evaluatioa shall not be a mechanism which will require the applicant, except as provided in item 2 above, to bring property into full compliance with applicable codes and legal action and assistance will be taken only on those violations of applicable codes that immediately and materially endanger the health and safety of the occupants of the eligible property, as this standard is defined and interpreted in Minn. Stat. Sec. 566.18 (6). ; 4. To the extent an applicant .is eligible for, can afford, and requests a City rehabilitation loan and is eligible for a City rehabilitation grant, such loan � a�3 grant proceeds shall first be used to correct violation of applicable codes w�zich constitute immediate healCh and safety hazards. - 5. If all violations of applicable codes which constitute ivanediate health and safety hazards are corrected under a City rehabilitation loan and/or grant then the eligible recipient may use up to 20% of the total loan amount he or st!s is eligible for, can afford and requests under this program for eligible � general improvements. The �emainder of any such loan amount must be expended � to correct violations of applicable codes. If all code violations are to be correcrsd under a City rehabilitation loan and/or grant, the the eligible recipient may use up to 40% of the total loan amount he or she is eligible for, can afford and requests, for eligible general improvements. 6. Upon the request of an eligible loan and/or grant recipient, the Authority may make City rehabilitation loans (including refinancing) that will result in the recipient's housing related expenses being beyond 25% of his 'or her income, if the Authority determines that the recipient can reasonably afford such loan amounts. 7.� City rehabilitation grants shall only be approved to provide financing for the� correction of violations of iuunediate health and safety hazards. - 7 - . . - , 8. All work performed must meet applicable codes. � 9. Preference shall be given to rehabilitation work that decreases or does not significantly increase consumption of energy and natural resources. Rehabilitation Loan and Grant Terms. 1 . The interest rate of a City rehabilitation loan shall be determined by applying the "adjusted gross annual household income" categories, to the income of the eligible loan recipient. The Authority, from time to time, based on the interest rate incurred on monies "leveraged" by the Authority and the availability of bond proceeds to pay "interest differentials" as that term is used in this Act, shall determine what the interest rate will be for each of the "adjusted gross annual household income" categories but in every event such interest rate shall be established at a 2 point interest differential between each category with the "low income" category receiving the lowest interest • rate; the "low-moderate" income category receiving the second lowest interest . rate; and the "moderate income" category receiving the highest interest rate. The Authority shall review these "annual adjusted gross household" income � figures from time to time in order to recommend adjustment to the City Council . 2. In the event the housing related expenses, including the payment required for the principal and interest of a City rehabilitation loan, of the eligible loan � recipient exceed 25% of the recipient's income., the interest rate of the rehabilitation loan shall be reduced to the next lowest interest rate category. Eligible loan recipients, whose income is in the "upper interest loan-moderate income category," shall not however be eligible to have the interest rate on their rehabilitation loan reduced to lower interest rate categories. 3. Maximum loan terms, except in the case of refinancing, shall be for twenty years or the remaining economic life of the eligible property, whichever is less, as determined by the Authority. In all cases, approved loan recipients shall be encouraged to retire loans as rapidly as their incomes will allow. 4. There shall not be any prepayment penalty in the event a City rehabilitation loan is prepaid at a date earlier than scheduled in the loan agreement. 5. For purchasers under the City of Saint Paul Urban Homesteading Program, where the HRA retains fee title to the premises being r�ehabilitated, at the time the HRA conveys fee title to the urban homesteader, the urban homesteader sha11 convey a mortgage interest to the HRA as security for their rehabilitation loan. Except as provided below; a11 City rehabilitation loans must be secured by a mortgage or other recorded lien or appropriate document against the eligible property. Rehabilitation loans to contract for deed purchasers must either be: a. Included as part of the refinancing of existing indebtedness as provided for in these guidelines, with a mortgage as security; . b. Secured by the contract vendor's execution of a first or second mortgage, as applicable; � c. Secured by a note, lien or other appropriate �document on the contract vendee' s equitable interest in the eligible property in which case the maximum loan shall not exceed $5,000. However, this provision � shall be utilized only after reasonable efforts have been made to provide the necessary security as outlined in "a. and b." above. ' . -8- . � - � .,\ � � If the eligible loan recipient is providing a land salea contract as security, it must be recorded. An approved loan recipient shall not � transfer the property during the term of the loan without the consent of the Authority. 6. The maximum amount of a City rehabilitation loan except in the case of � � refinancing shall be the lesser of and not exceed: a. . $1�,400 per dwelling unit as set forth in the Department of Housing and � Urban Development's (HUD) Rehabilitation Financing Handbook 7375.1. The Authority shall review this limit from time to time to recommend potential adjustments to the City .Council; � b•. The actual cost of the eligible improvement work; : c. That amount which, when added to other debts secured by the eligible , property, would exceed the market value of the eligible property after the eligible improvements are completed pl�is 10 per centum. 7. The following costs may be included in a City rehabilitation loan or grant: a. Building permits and fees; , b. Architectural and other design services; c. Loan origination and servicing fees, fees and incidental costs, such as appraisal fees, inspection fees,.: title reports, credit reports, record- ing and filing fees, etc. � . * 8. Gity rehabilitation �rants may be approved in conjunctioa with Ci:�y rehabiiitation loans. 9. . To be eligible for a City rehabilitation grant, an applicant must have .limited-.: assets available to pay for eligible improvements and an income- not� to exceed• � the income limits of "very -low-income- families" for public housing as that term is defined in the- Tit1e II of the Housing and Community Development- Act o_� 1974, amendments to the Unitad States Housing Act of 1937, Sec-.- .�Z01 (a},. Sec. 3- (2), . � and aoproved by the Department of Housing and Ur-ban Development. �. The, Authority � shall review this income limit from time to time to recommend potential adjust- ' I''� ments to the City Council. * i0. The maximum amount of the City rehabilitation grant shall be the lesser of: (1) $5,000; (2) the actual cost of the eligible improvement work; (3} an amount which when added to previous grants received under the Programs listed below � would not exceed $5,000 in total. This restriction shall apply for not less than 10 years except in the event of a natural disaster. Px'.ograms to be inc],uded in determining the $5,000 maximum grants limitation are: Federal Section 115 Grant Program, Model Cities "Rehabilitation Grants Program," Ramsey Action Program . "Energy Conservation Grants Program," City of St. Paul Rehabilitation Grant Program, Minnesota Housing Finance Agency Grant Program. ' 11, ' City rehabilitation grants are provided under the condition that, if the eligibi].ity property is soid or transferred within three years of the date on which the grant is made, the grant must be repaid in one of the following amounts: - 9 - ► � r . a. In full if sold or transferred within the first year; . b. 1�,�o-thirds (2/3) if sold or transferred during the second year; c. One-third (1/3) if sold or transferred during the third year. In making grants, the Authority shall require a lien or other approptiate documents to be filed on the, property to reflect the above provisions. The Authority shall adopt further administrative guidelines to provide for • hardship exceptions to these provisions, where there is no evidence of abuse by grant recipients, forced by circ�stances beyond their control, to sell or transfer the eligible property within three years from the date on which the grant was made. * 12. .A City rehabilitation grant may also be approved in conjunction with a MHFA rehabilitation loan, issued by the Authority. Provided however, that all such grants shall be made fraa a specified amount of public funds, designated bq `City Council resolution, for such purpose. To be eligible for such a City rehabilitation grant, ,an applicant must be an eligible loan recipient and �must have an income which places the eligible Ioan recipient iri t he "low income" or the "low-moderate" income categories as set forth in the "Adjusted . Gross Household Income" portion of these Guidelines. Such city rehabilitation grants shall be used solely to reduce the amount of the MHFA rehabilitation loan principal to an amount which would result in a monthly repayment amount,. substantially equivalent to the amount such eligible loan recipient can afford, requests and would be required to pay under a City rehabilitation loan, for an equivalent term of years and at an interest rate determined by applying the "Annual Adjusted Gross�"Ho.usehold Income Categories':'_to the'income of the eligible loan recipient. I�rovided further, that no such grant shall exceed $2,OQ0 and that affordability and eligibility shall be determined by application, of MHFA and federal rules, regulations procedures, guidelines and agreements entered into with the Authority. Such City rehabilitation grants shaZl not be subject to the provisions of paragraph 11 above, and the issuance of such grant shall not render an otherwise eligible grant recipient ineligibie for a City rehabilitation grant. Refinan�in • To the extent capital ;is available, as determined. by the Author•ity, refinancing may be used to permit eligible improvement work wk�ich could not otherwise be ��fforded or secured by an applicant. The Authority shall closely monitor refinancing to insure that capital available to make City rehabilitation loans is being primarily expended on eligible improvement work. Al�o, the Authority shall take precautions to insure that refinancing is not used for the purpose of financing the purchase price of a prapPrty. Therefore, in all cases involvitig refinancing of existing indebtedness secured by eligible properties that have been recently purchased by the applicant, the Authority shall, as a condition to making a City rehabilitation loan, satisfy itself that the applicant has not made collusive prearrangements in order to obtain refinancing, which is in reality purchase price financing. The following provisions shall be used in implementing a refinancing program: l . Refinancing of existing indebtedness secured by eligible singln-family or duplex properties at: an interest rate affordable to the eli�;ible loan recipient, but not lower than 5%, will be permitted when such zecipient's principal and interest payments on existing indebtedness, combined with the payr�eat required for the principal and i,nterest of a City rehabilitation loan, exceed 20% of the recipi.�nt's monthly income, provided that the recipi.ent obtains fee title by the time the refinanced loan is closed and a satisfactory title insurance policy is obtained for the property. _ �n_ ��'��.+�3 2. To be approved for refinancing, the Authority must first of all determine , that the applicane is unable to afford and secure refinancing funds from other sources, including piivate lender programs at market interest rates, federal homeownership programs and the MHFA single-family residence program. If it appears that an applicant is able to afford and secure refinancing from other sources, the Authority shall first refer the applicant to the appropriate source or sources. After referral, if an otherwise eligible applicant�can demonstrate that he or she is not able to secure refinancing from other sources, such applicant may then. be approved for refinancing. -- . _ _.___ _.____ 3. To he approved for refinancing, the cost of eligible improvements must � ! be eqiial or er,ceed 33% of the �rincipal of the existing indebtedness of the eligible property. � 4. Refinanced loan terms may not exceed 3G years, or the remaining � economic life of the eligible property, whichever is less, as deter- � mined by t'he agency. � . . . j S. The Authority, with �the consent of the eligible ,refinancing recipient, � • may provide for a front end deposit by the recipient of up to 3 points, � to� be placed in an interest-bearing escrow account for a specified � period of years, to be used by the recipient for maintenance and repair � . of the eligible property ov:�r the specified eriod of remaining in the account after e iration ofPthe s ecifieds� Any monies � '� P period of � years will be returned to the recipient. i 6. All other provisions of these guidelines shall apply to City rehahi.litat ' � loans or grants made as part of a refinanced mortgage or contract for deedn � as set forth in this section. � ,.. ; � � ' Sweat Equity . � � � � 1. Performance and completion of eligible improvements by eligible loan and grant recipients, neighborhood ��associations, organizations, cooperatives or collective contract groups ( Sweat Equity") will be permitted. How- ever, close scrutiny 'shall be maintained to insure that such work is carried out in a timely manner, without providing delays for the. eretire � rehabilitation process. . . i 2. All eligible improvements work approved under a City rehabilitation loan � or grant must be covered by a contract requiring full completion of such . work, including work being done directly by the eligible loan or gran.r_ ' recipient ("Sweat Equity") , and the approved loan or grant amount must � be based on that figure. The contract must identify work being done by j the recipient; allow specific credit for this work; specify the time for. completion of work don� by the recipient; and provide for the contractor's , completion of work not completed, within the specified time, by the recipient. Recipierits performing work through "Sweat Equity" shall be permitted to draw upon their escrow account in order to pay for required 1 macerials. � � Contractor Performance � 1. Nothing in these guidelines shall be construed to limit or restrict the applicability of state or city laws re.laring to the home improvement business or the repair, rEhabilitation and improvement of residential housing and real property and all persons and contractors performing : eligible improvements work under a City rehabilitation loan or grant must be "licensed" as required by such laws. . , - -ll- _ , * 2. To be eligible to be awarded a contract under the City rehabilitation program a contractor must: a. First not be identified and placed on the "Probationary List" of contractors developed and maintained by the Authority. Second, attend a pre-qualification seminar conducted by the Authority. The purpose of this seminar is to inform contractors about the City rehabilitation loan and grant program and to specifically instruct contractors concerning the following: 1. The quality and workmanship standards required; 2. The contractors' role and the various contractor require- ments :,and procedures contained in the City rehabilitation loan and grant program; , 3. The business ethics required while under contract; 4. The arbitration policy for resolving disputes arising from contract execution. � b. Must demonstrate that they are equal employment opportunity employers. c. All contractors must pay prevailing wages. * .3. xce t as to contracts.wherein the cost to perform the eli�ible imvrove- ment work is less than ��,,, 05 0.00, all contractors being awarded a contract ' under a City rehabilitation loan or grant must provide the eligible loan or grant recipient and the Authority with evidence of a 100% performance bond, in the full amount of such contract, effective for one year beyond the date of completion and acceptance by the recipient and the Authority : of the work. To the extent legally permissible, these bonding requirements may be waived; or modified if the Authority determines that the contractor is "bondable" and that such bonding requirements will be met within 12 months of the date of the loan or grant. �n case of contracts. wherein the cost to perform the eligible improvement work i"s between $2,SOQ.00 and $5,000.00, _ the eli ible loan oz grant recipient may voluntarily waive such bonding requirements by si�ning a waiver a�reement speci ca y escri ing e bondinQ protections that are being waived and stating that the agreement i��Q�untarv. . Prior to the execution of the waiver a�reement by the re- cipient, the Authority shall explain the content thereof to the recipienC. 4. All eligible improvements work performed pursuant to the City rehabilitation loan or grant must be covered by an Authority approved warranty concerning the quality of materials used and workmanship in performing such work. The warranty system will be monitored and enforced by the Authority in coordin- � ation, where appropriate, with the MHFA. 5. All contractors performing eligible improvements work under a City � rehabilitation Ioan or grant must: � a. Carry all, adequate and required by Iaw, insurances; b. Possess all, neCessary and required by law, Iicenses and permits to perform contracted eligible improvements work. - � - 12 - . , ... f * 6. Final payment cannot be made to a contractor until the eligible_loan or grant recipient and the Authority have accepted the completed - � eligible improvements work in writing. If the contractor requests periodic draws on completed eligible improvements work during-the . period of such work, such.draws. must be accompanied by appropriate lien wa3vers concerning .the work completed and will .be subject to a 10'. holdback on the o�erall eligible improvements work contract,i_� the work .and_contract.. is -covered b a .100'J, erformance-.bond as.._._ �lescribed in paragraph 3 _(b); .or will be subject to a SOy holdback on the overall eligible im rovement work contract if the work aad �ontract is not covered by such a performance bond � 7• The holdback shall be used to correct unsatisfactory eligible improvements . work �and to defray any costs required to be incurred by using a replace- ment contractor, should: the first contractor be removed �rom the job. 8. The Authority shall provide necessary administrative assistance and procedures so that minority contractors and sub-contractors. are provided equal opportunity to be awarded contracts to perform eligible improvements work under the City rehabilitation loan and grant program. � Additional Administrative Res onsibilities. � The Authority, in implementing, administering and carrying out the provisions of the City of Saint Paul rehabilitation loan and grant program shall, in addition to the duties, responsibilities, determinations, functions and other provisions contained in these guidelines, be responsible for and carry_out the following duties and functions: 1. Administer the City rehabilitation loan and grant program, in such a manner so as to comp�ement other public rehabilitation and related programs, and not be competition with or as a substitute for any other public program. Particular administrative emphasis shall be placed on encouraging lower- income homeowners, who live in neighborhoods where the need for rehabi].ita- ' tion is recognized, to avail themselves of the City rehabilitation loan and grant program. To this end, based on the income limits being adopted in these guidelines for various loan intereat rate categories, the Authority shall adopt procedures that will insure a losn approval ration of 2-1=1 (lower interest rate - middle interest rate - higher interest rate) over the length of the program. This guideline, however, shall be adjustable by the Authority based on rehabilitation needs and in reference to approved � neighborhoad rehabilitation programs. Also, the Authority �ha11 establish � a monitoring system, particularly during the early stages of implementation, that will �detect and advise. the Authority, steering committee, and the City � Council of any trends inconsistent with the intent of Minnesota Laws 1974, . Chapter 351. ` 2. Adopt, consistent with the provisions of Minnesota Laws, 1974, Chapter 351 and the provisions of these g.uidelines, further administrative guide- lines, procedures and/or rules and regulations necessary to implement and administer this program. To this end the program shall be implemented � - 13 - � � hv r}�e Authority with as few u<iministrative rules and procedural steps as possible and should be a corresponding flexible program which meets real rehabilitation needs and satisfies the intent of Chapter 351. In this regard, the Authority shall recoc�anend to the City Gouncil necessary changes in these guidelines on a continuing basis, These administrative guidelines, procedures and/or rules and regulations shall include provisions designed to insure that financing of rehabilitation through this program will be available to eligible persons or families on a city wide basis and in addition will be available to: a. Eligible persons or families required to repair, improve, or rehabil- � itate housing because of an urban renewal or code enforcement program; or if under court order; • b. Eligible.,persons. or families unable to receive property insurance • because of physical hazards; . c. Eligible persons or famiYies who }iave agreed to rehabilitate their property in conjunction with and pursuant to an approved neighborhood � rehabilitation project, plan ;or program; d. Eligible persons or families unable to afford rehabilitation l.oans at a market rate ot interest; e. Eligible persons or families whose home contains violations of applicable codes which constitute immediate health and safety hazards; f. Eligible persons or families who have acquired property through or pursuant to an urban homesteading program; . g. Eligible persons or families required to rehabilitate their homes under or pursuant to approved relocation plan. 3. Coordinate with the Mayor and City Council in their establishment of an : advisory committee composed of community group representatives, private - citizens; and public officials to act in an evaluation and advisory capacity after .implementation of this program. * 4. Borrow or leverage monies pursuant to Minn. Stat. 462.415 to 462.711 and Minnesota Laws, 1974, Chapter 351, from private lenders and the MHFA to be used. to make rehabilitation• loans and grants to refinance existing indebtedne�ss under the City loan and grant program, in such amounts, and under such terms and conditions, as the Authority, in coordination with the C�ity Council deems appropriate. AZso consistent with and to the extent provided by law, to coordinate with . and enter into agreements with the MHFA concerning the use of tlie MFiFA rehabilitation loan and grant program and monies, and to issue MHE'A rehabil- itation loans and grants to eligible applicants for eligible improvements as those terms are defined and used in Minnesota Statutes, Chapter 462A; imple- menting Mf-IF'A and federal rules, regulations, procedures and guidelines; and � agreements. between the MI�A and the Aut'hority. 5. Make available, on a coordinated and comprehensive basis, other related ' housing prograrns administered in whole or part by the agency, such as ; urban homesteading, the hazardous: building act (Minn. Stat. 463.I5-.26I � . - 14 - � . 5�� L=«�wa�, LCUCL61 Lenao111LaLiOn loan ana �ranL and homeownersnip programs , and the 2•g;gA rehabilitation loan ar�d grant program (including "reserved f unds) � to compliment approved neighborhood rehabilitation programs. � 6, Provide necessary administrative and technical assistance in carrying out the provisions of the City rehabilitation loan and grant program. 7. Coordinate with the City Planning Department and the City Council in the preparation and implementation of neighborhood rehabilitation programs and upon direction of the Council: a. Prepare appropriate documentation and submit reservati-on requests to the MHFA for the reservation of MHFA rehabilitation funds to be . available on a City-wide basis and/or to be available for approved� neighborhood rehabilitation programs; , b. Set aside funda available through or as a result of the City rehabilitation loan and grant program including bond proceeds or ' "leveraged" funds for approved neiohborhood rehabilitation programs. , 8. Coordinate with and, to the extent legally permissible, contract with other � state public bodies as that term is defined in Minn. Stat. 462.421 (4) such as the Cozrmiunity Services Housing Code Inspection Division and the . � City Planning Department concerning the delineation of res�onsibilities and functions in carrying out the provisions of Minnesota Laws, 1974, Chapter 351 and these guidelines including but not limited to. the exercise ' ' of powers relating to the repair, closing, acquisition, or demolition of hazardous, unsafe, unsanitary or unfit buildings; the inspection of ' residential housing; and tha authorization and delivery of public and � � other related improvements. ' 9. Coordinate with, and to the extent possible, provide assistance,� in. � conjunction with the City Planning Department, to neighborhood organiza- � tions or associations to assist such groupe in assesaing the potential for, in organizing, �and in developing and formulating neighborhood rehabilitation project plans; and in conjunction with the City Planning Department, inform intereated neighborhood organizationa and citizens on the specifics of the City and MIiFA rehabilitatioz� loan and grant program and disseminate. informa.tion concerning these programs on a City- wide basis. • 10. Coordinate and contract with neighborhood organizations and _associations � and non-profit and redevelopment corporations concerning *he delineation of authority, organization, association or corporation functions and responsibilities as regards an approved neighborhood rehabilitation program. To the extent legally and economically permissible, such a contract �may include an agreement by the Authority to reimburse such a�sociations and � corporations for expenses and salaries incurred in carrying out such , � functions and responsibilities. , 11. Coordinate and contract with local lending institutions concerning their involvement in the origination and servicing of City rehabilitation loans ' and grants, -but in all cases the� final decision concerning the making of a City rehabilitation loan or grant rests with the Authority. 12. Coordinate and contract with the City� of Saint Paul concerning the receipt and use of bond proceeds, authorized by Minnesota Laws, 1974, Chapter 351, and made available to the Authority pursuant to Minn. Stat. 462,415 to Y 462.711 and Chapter 351. ' � _ 15 _ -�,� � _._ �.-.:.,�5 13. Provide an adequate information and referral system, whereby persons and families who�are potentially eligible for and desire to avail themselves of other public and private programs and funds relating to rehabilitation and homeownership including "reserved" or (excluding "leverage:d" MHFA funds) otherwise available MHFA rehabilitation and refinancing funds, (instead of City rehabilitation loans and grants) are given full informa- tion concerning the u.se and availability of such funds and programs and proper referral to rehabilitation programs and administering entities. 14, Provide, upon completion of and acceptance by the eligible loan or grant recipient and the authority of eligible improvements work, a "Certificate" , setting forth what violations of applicabl� codes and immediate health and safety hazards have been corrected by the eligible improvements work and what other eligible improvements work has been completed, and stating that the completed eligible improvem�nts work is in compliance with applicable codes. 15. Provide,an appeal or review process and procedures and information so con- cerning,wherein any person who feels he or she is aggrieved by the application of these guidelines may appeal such grievance for independent review and determination. Use of Bond Proceeds. � 1. Consistent with the provisions of Minnesota Laws, 1974, Chapter 351, and. these guidelines, bond proceeds shall be util,ized by the Authority to pay • the following costs and for the following purposes: a. Interest Differentials. To pay the difference between the interest rates on approved City rehabilitation loans and refinanced indebtedness and the interest rate incurred on monies borrowed or "leveraged" by the Authority and used to make and issue City rehabilitation loans a.nd/or to refinance existingindebtedness, provided, however, that in no event shall the payment of interest difference on any Gity rehabilitation ioan exceed 2 points. b. � Default Reserves, To be set aside and used, at a percentage rate not - to exceed 6% of the total amount of monies used to make City rehabili- tation loans, and at a level and upon such terms and conditions determined, as a result: of negotiations with private lenders and the � � MHFA, by the Authority, with the consent of the Council, to pay for City . , rehabilitation loans and refinanced indebtedness defaults. c. Administrative Costs and Technical Assistance. To pay, in an amount approved by the City Council, for administrative and technical assistance costs incurred by the Authority or its agents which are directly related to the development, implementation, administration and carrying out the City rehabilitation loan and grant program. d. Rehabilitation Grants. To provide and make a maximum of $150,000 in City rehabilitation grants, consistent with the provisions of Chapter 351:. e. Rehabilitation Loans. To provide and make City rehabilitation loans, consistent with the provisions of Chapter 351. . , � -16- , ��. , •_� �2. Any interest charged and received under a City rehabilitation loan that is in excess of Authority costs, as regards that loan, may be used by the Authority in making additional City rehabilitation loans or for any of the purposes specified in (1) above. * ' Notwithstanding any of the above recited guidelines, the following are supplemental guidelines restricted to the Hill Concentrated Rehabilitation Area which is defined as; the four blocks bounded by Chatsworth on the west, Victoria on the east, the alley between Selby and Hague on the north, and the alley between Laurel and Ashland on zhe south. * I. Purpose � The purpose of this project .is to improve the aesthetic quality of the residential environment in the Hill Concentrated Rehabilitation Area. II. Objectives The objectives of .the Exterior Improvement Grants project are: 1. To increase the number of standard dwelling units in the Hill Concentrated Rehabilitation Area, by providing an incentive in the form of a grant to any owner-occupant�whase home meets Housing and Building Code Requirements or who is rehabilitating his/her home to meet code requirements. 2. To improve the residential environment by stipulating that the incentive grant be used for exterior improvements which are not necessarily code items but which ar� necessary for aesthetic purposes, ease of maintenance, or safety o� residents and their children. � III. Content and Operation . i. The HRA, which has the responsibiTity and jurisdiction to carry out the St. Paul Rehabilitation Loan and Grant Program and projects and programs under the Housing and Community Development Act of 1974, shall be the Operating Agency for the Exterior Improvement Grants portion of the Rehabilitation Grants Project. 2. Exterior I�aprovement Grant funds will be made available to homeowners residing within the Hill Concentrated Rehabilitation Area whose homes � are in code compliance but who desire to make additional exterior isprovements for the purposes stated in .IY.2 above, or to homeowners'who apply for and receive rehab loan or grant funds and desire to ma�ce such exterior improvements. 3. The HRA Rehabilitation Department shall receive all Exterior Improvement Grant applications and shall make grant monies available to owner-occupants in the Hill Concentrated Rehab Area on a first come first serve basis, provided proposed improvements ar.e consistent with the objectives stated in II.2 of this scope of services. 4. The HRA Rehabilitation Department and City Inspectors shall provide i�nspection services. All inspections shall be based on City Building Code. . 5. The Rehabilitation Department, prior to reco�mnending action by the HRA Loan and Grant Committee, herein referred to .as the Committee, shall determine that the following criteria have been met: � . _ 17 - a. Applicant must be the owner-occupant of a home no larger than four (4) ' units. b. Exterior improvement work will include, but not be limited to, painting of exterior or repair of siding, landscaping, fencing, and yard or alley lighCing. HRA Rehabilitation Staff will be responsible for determining whether a proposed improvement fits within these guidelines. c. At the time of applying, applicant must hold title to the property or have a contract for deed, applicant must have been a resident of the � Hill Concentrated Rehabilitation Area for at least six (6) months. d.. The HRA shall disperse funds only after approval of the application by the Coamni.ttee. e. Grants shall be made only to homeowners who are paying.257a or more of their. adjusted gross income for housin� related expenses. 6. Funds • a. The exterior Improvement Grant Project shall be �.imited to th.e dispersal of .Exterior Improvement Grant funds up to the amount of $45,500.00, as - delineated in the budget for the "Other Activities" portion o£ the Hill Concentrated Rehabilitation Area. b. The HR.A shall disperse all funds out of Community Development Block Grant funds. c., Each grant shall not exceed $1,500.00. d. Ptonies will be dispersed by the IiRA after the work is deemed satis�ac- �tory by inspection; the check shall be made out jointly to the contractor and the homeowner. � e. The rehabilitation grants are provided under the condition that, if . the eligible property is sold or transferred within three years of the date on which the grant is made, the grant must be repaid in one of the followino amounts: " � a. In full if sold or transferred within the first year; b. Two-thirds (2/3) if sold or transferred during the second year; c. One-third (1/3) if sold or transferred during the third year. - 18 - �F... -�r �-.:•�•�.-..r��.��,:�o�.,,,�..:�,d,.9, �� APPENDIX I � AREA IMPROVEMENT PROGREIM FOR RESIDENTIAL REHABILITATION Recognizing the importance of structural conditions throughout an area to an individual property and the value of any investment in the rehabilitation of a residential structure, the City of Saint Paul will establish a progr�m to encourage the concentration of rehabilitation resources� in limited areas with the following objectives: 1 . Support and encourage cooperative neighborhood improvement efforts by . ensuring the availability of financing and technical assistance for area improvement efforts. 2. Achieve substantial , visible improvement sufficient to strengthen neighborhood stability and encourage continuing private reinvestment in residential areas with substantial rehabilitation needs. 3. Through concentrated assistance, ensure that as many rehabilitation needs as possible are met, including those which can be met exclusively through the private market. 4. Reinforce existing sound neighborhoods and previous investment in neighborhood improvement by extending improvement efforts to nearby areas . threatened by blight. 5. Coordinate completion of required public improvements and other cammunity development needs with area rehabilitation effiorts where possible to strengthen area-wide impact. 6. Maximize pubiic/private cooperation in neighborhood improvement so that increasingly the efforts of private citizens, neighborhood organiza�tions, lending institutions, the City, the State and other public agencies reinforce each other in reaching the common objective of a high-quality residential environment in City neighborhoods. . Re�-�:�bilitation Plan , The City Planning Coordinator will prepare a general� plan for residenti�al reha5ilitation in Saint Paul . This plan will indicate generally th�t portion of the City for which concentrated rehabilitation effort is particularly appropriate. The plan will identify criteria for the evaluation of area rehabilitation project proposals, will indicate the range of activities� which sh.ould be considered for neighborhood or small area projects and will indicate the specific informational requirements for a project plan. The priority areas identified �or rehabilitation activities will indicate those areas of the City where need exists for positive effort to encourage rehabilitation interest and will provide a basis for the coordination o�f publie irr�provement activities with residential rehabilitation efforts. � Identified priority areas then will be considered in the evaluation of rehabilitation projects proposed by neighborhood organizations; however, projects will not be restricted to the priority areas identified. - . • . � �� . . c_ � � Page 2 APPENDIX I The rehabilitation plan will also address the need for rehabilitation assistance throughout the City outside of concentrated project areas; measures which may be needed to ensur.e that resources are available t�oth for area projects and for the remainder of the City; and measures other than formally designated area projects which may be used to encourage - neighborhood cooperation or otherwise increase the effectiveness of rehabilitation efforts throughout the City. . Neighborhood Rehabilitation Proqram The City Planning staff, working with the Housing and Redevelopment Authori�ty, will prepare a program of specific area rehabilitation activities to be undertaken. The program will be revised annually and forwarded to the City Council by the Planning Commission. The program will i�nclude.: a. Neighborhood project plans and the estimated resources required for � each project. Each plan will specify how the technical assistance and community organization assistance is to be provided and will _ identify the local citizen organization with continuing: responsibility for the project. b. Identification of any City and/or MHFA loan and grant funds to be reserved or set aside for each project. . c. Identification of resources r•equired for pre-project planning in some areas �nd reserva.tion to be made for potential projects. � � d. Indication of demands which proposed projects can be expected to make on City staff for building inspection. = e. Identification of ineasures other than rehabilitation loans and grants : which can be programed for area projects including public improvements, urban homestead, recycling acquisitions , etc. While the intent of the annual program will be to ensure that project needs • and available resources are matched for a given year, reservations of loan and grant funds for longer periods of time may be indicated. � Neighbornood Project Plans Development of projer_t proposals will be coordinated by the City Planning staff. It is anticipated that potential projects wi11 , in some cases, be initially proposed by local neighborhood organizations. In` any case, area residents wi11 be expected to play a major role in the development of a project proposal or plan. In those areas of the City where rehabilitation is identified as a high priority need, a positive effort will be made to ensure. that information and assistance are available to residents as required to identify area needs and develop project proposals. --_��--,�;°°�z - APPEN�IX I Page 3 Where desirable, loan and grant resources may be reserved for potential projects in a given priority area for a specified perio� of time less than one year to encourage interest on the part of residents. If, after the specified time � . period, an adequate plan_ has not been developed with strong community support, such a reservation would lapse. Proje�t Implementation , � Where a project is established, technical and community organization assistance and informational materials for rehabilitation will be provided to resident groups as required to achieve broad participation and accomplish rehabilitation work in a satisfactory and efficient ma�ner. It will be the responsibility of � the Housing and Redevelopment Authority as the administrative agency for . neighborhood proj�cts to ensure that the necessary technical and community � organization assistance is provided. � The City Planning staff will monitor and evaluate the progress of the rehabilita- tion program and will propose revisions in the program as they become necessary. In assisting neighborhoods with identification o� desirable aroject areas and in evaluating proposals for an annual program of area improvement activities, the following factors will be considered: age of housing . structural condition of area housing income profile of area population incidence of home ownership � � residential structure types - property values and value trends - area improvement needs that cannot be met through .rehabilitation neighborhood improvement efforts which go beyond rehabilitation and increase the possibility of significant upgrading � public improvement and community facility needs and projects and plans which may strengthen the improvement effort • � other complementary improvement programs potentially or actually in effect which would strengthen rehabilita�ion impact corr�nitment and interest of area residents previous improvement activity � � � � � natural boundaries, adjacent sound neighborhoods and blighting . influences . It is understood that organized projects for which funds are reserved under the City program need not constitute the entire range of locally-organized rehabili- tation activity. Residents are t� be encouraged to work cooperatively in whatever way they find feasible and appropriate to achieve neighborhood improve- � ment, making use of available loan and grant assistance. _ 8/5/74 . APPENDIX II � TYPICAL REHABILITATION LOAN PROCESS SAINT PAUL REHABILITATION PROGRAM The purpose of this APpendix is to describe a "typical" case and. the procedures to be followed for a homeowner to obtain a rehabilitation loan under the program guidelines that are outlined in the previous documents. Certain assumptions were made for purposes of describing this procedure. Those assumptions include the existence of a small "store-front" office in a neighborhood that has been identi- fied and approved for a concentrated rehabilitation program. We further assumed the office is staffed with two rehabilitation advisors, a part-time community organizer and a part=time secretary. A rehabilitation loan officer would be . � located at a central � administrative office. The process would begin when the homeowner contacts the community organizer (or � rPhabilitation advisor) at the site office. The contact may result from the homeowner obtaining information about the program at a rehabilitation "block party." During this initial meeting, the organizer would describe the general .rules, procedures and guidelines of the city rehabilitation program, screen the homeowner for eligibility and attempt to determine the homeowner's interest in rehabi]itating his property. . Assuming that positive interest and eligibility are established during the initial contact, the organizer would ask the homeowner .to fill out a data sheet and schedule an inspection of the property by the full City Inspection Team. � The data sheet would be forwarded to the rehabilitation loan officer for review and a further determination of eligibility of the homeowner to receive a loan. Durin� this time, the City Inspection Team will have completed their work and prepared a written list of all code violations found on th� property. A copy of the- list wou d e sent to the homeowner and the rehabilitation advisor at the si te. �f�'ice. A meeting between the homeowner and the rehabilitation advisor would be the next � step in the process. After determining the scope of general improvements desired by the homeowner and deciding which code items are to be corrected, the rehabili- tation advisor will instruct th� homeowner to have a contractor prepare a Preliminary scope of work for bidding purpose. The homeowner would subsequently select an approved contractor and obtain an informal bid_ from him. After� receiving an informal bid, the homeowner would review the scope of work and cost with the rehabilitation advisor. Upon agreement by the homeowner to the final scope of work, the contractor's bid would be obtained by the homeowner. During the time that final bids are being prepared by the contractor, thz site office would fill out a preliminary loan application with the homeown�r and the property would be appraised by an independent real estate appraiser. The "laan package" consisting of the final bids and scope of work, loan application and appraisal are then delivered to the loan officer at a central location for process- ing. During this processing, the loan application would be review�d and approved : (denied) by a Special Rehabilitation Review Corr�nittee. ' �'�`�e Z APPENDIX II ' . Assu�r�ing that the package is approved, a closing would be set between the homeowner and loan officer. Upon closing, the contractor will be issued an order to proceed with the work. During the construction work, the rehabilita- tion adv.isor will coordinate with the homeowner in monitoring its progress, Completion of all construction work would be followed by a final inspection by a group. consisting of the homeowner, City Inspectors, and the rehabilitatioh advisor. Items found to not be in compliance with city codes and the scope of work would be corrected prior to fina] payout to the contractor by the loari officer. Lien waivers will be obtained at the time of final payment. Partial payments may be arranged, if the tPrm of construction is anticipated to be lengthy. _ In order to provide you with a further understanding of the above process, a � graphical presentation is attached hereto. The Special Rehabi.litation� Corrmittee referred to would �be made up of city staff and representatives of the administrative agency designated by the City to implement -the program. � _ 7/]1/74 `/� ' v \J v �. .r . . . � �n H "5 �� Z ' --i Z �--� . c� n--i --i � D� , �. (n C� D rv = --� r rv m -s m i o � z . . m - � I -n r o c� n ►-, .-� �ZD ct omcZi� �D m._3..� 'v z o cn .�, m O'*1 S . � �-Ci D-nj c'� 'n m �n p_.{ �-, • N f")-i (D D O Z - Nm f) --IZ �--� � -i t-+ . � 1 Z O O O O ' ' +n 'S Z 'T'1 N (n 'S � .Z7 � m •-. m �. �" -1SN . w = D c� cr oo c o cn ¢ � Z N a z m ►-+ < mmo _,. � oz N �T�—v r . ° ° . 0 0 -v o � a -v � . � p Z - o o v c-� v c-t� C � W �O�TJ � -1 O Z f�'1 m o ' ro D�v-1 r �p ^S �+o r-r _ ma�� or--rz ' cnoa -°++� �o� 7O� -++� onz -�•rn cn z D n . ru � Z r ^s o � � �o -v -s -� � �n � mom � � � m � � � -�v � . v' � cn mo mE � cn o+ v7vmD . a � o � � < E -i N c� c-� N i m Z � • z o = cv r+ . N -S -� . � � . • n C -- __ _..--— � c+ n O ~ � 0 � 'l7 � Z fL I'Tl � ' �-rr ►r--� f 0.� W ' �. �N (� 3 c�D --� o tn D , ..,s � N ...�.n �..� -� fD �� Z � �. Z ,,...., -s r .-, r-- r,-i . N � va o ZZ v � m r c� , � r* -� o .-, -------- - ----- ------�---- -s o � �' Z -� v _ r . o z v o sL onn � c-�c� z m .�c '�� -AGZ -fi NG7 ci� m r�-- -+' o m (p Z A �S Ro --�1 fD N �S O ` T . ' a I� � "�� . . . . . � S � ', ' /_�1,'y��'°.�/ � . . • , • - . . . - • �' � .• -., . APPENDIX III . . � � � . � ;: , , :.� ^ � ��„� . . . ._ . . . . . � - � � ClTY OF ST. PAUL � --� , �, -c `r'.�.!:�` l=� � . - . . . :. . . . . . . � ., _ . _ . � `" ^ '/,� .-- � " � � �o+'' y;`� .=-�! DEPf��T�`1E\'T OF CU,'v111-1UNlT�' SERVlCES . � w�` � � . •�� • . �• �;� �`� .;`��'DIV15I0;� OF ;-tOL'Si�'�G �.tiD 3U:LDlNG CODE ENFO�CFMENT ' � t , --�� G t r �'� '�` . . _ . . _ � �'"'``'� � 445 City Hall, St. Paui, ,'vtir,nesota 55102 � - . . : Phone b72-29Q-�'r212 � �pril a. 19i� • . . n,;n-, r�..i . . �.1,•.�.-- `?��✓Ja• ' To: ��:arr�:.n r^�ost _ _ . . . �� . . . rro�a: , Swn Blue //� . _ �. . . _ _ ��t'�c�.C!?c".C� ?.S �l =�t�:t��t� �1St O� :�I1L�l�r'-.-C�lute ".t1G31-�t? c.'2i C� Sc�L=t�:�r �'1Z2c1=.r'r'.�' . �•:�?iCl1 :•i11.1 i7� tlS�Cl l:"J. Cai1:1EC:i 102�i �ti1t�1 i.ilE' C��:V i`:id� Reha'ai.?j.a..cati.nit i��c�.i�7 proc-�:�.ur�s . ' - . � � � � �Y�? S1�Lt%v I•':c:G� SUIT'i2 COr.�^Cr1011S �O the . co�-�'_' ��'?�'2"� G��ri'?w? :_� a`'.i�C' �J?-UC;:;:L'a!".^-_ c.:;�: 1�7� f1c:�iE? d1.50 ZE`CXUCE_.'C� SC::�` l:r i`..IE'_ i;'i.ET_S LiI'?..i°� f.�2�' ir_�,�e::i�� nea±t�-� �nd s.a:ri�-�y h ard� t" ��- G;� �- ; ,� ' „ . a�� _��_�- not rcl�.�e spcci{�c�i�1� • �o h�.-r.-_._c�s _ .. . C�{� GSi� ��C:� ��011 l-�L✓C.r1,l.l�.A�C.. �-iL1.1 -4.G�./�J"-i ��SL. LO 'G�� `A�� :1��1��5'J.LJ . . . SC� 'C�12V ��r1.�i�_ �_?Oi�: :•;171'i. :tE_'I[iS �•T11�. b2 c SLC.Y'I_S}:f'C�. .GI: tl=C' ^-,111J�;='QU�r` - rE:�r�O�'i_; � `!'zi�a^ �'+1S G '� * • '-rar-= t' '- _ - - ��ic ��_t.�? ��lE iTl�...._1;_ O.� h�v?r.g c2 T�OY'G S'i_ui:w�,I:t:l • - , _ rc�;.��r _ ic:�er_t��_y;;, t?:c.�s� ?�e�rs cl�ssi.i �- -�- ., J_ , . : � �tia �z� ��_u��a��.e r��.�..� ��z-:: : 5�:iC_'��r llc'<':cl'iiS . . ' . Gt1J_' �1S'�. OL C�°i]_C1ca:C:.'_�S .i0� 1T1Sr,C_'C�.]_O?7^ 2T1 ccnnec��on F?1i=t1 nLI2�Y' }?xo�ra::s :�;ill r,c� b�� a�ter�_�'_ea �:_;�d zll '-'�� : =- :...� 1 ,i:_, �ts�:�a .�I.?�?�C? 'fl.��•` tc . �e cor_EC�•�c! b�.",,�r� tni_s oir�r.` cc�°ii�: c�r�i.-=y t��. ;,�• }r;;;ldir.g r:ie_.�s tl.e mir_�.i�,�,r cn�e reiuir�-��n'cs . :C�� t� l:a�e �ny cluest_�c�ns, pZ�as� g�;�� r:� a .c_:ll. _ � . . . S _E_� , ' crT;/' '- _ . •- _ �.J= . : ' _._ :'> " i " � • ' � CITY-NIDE P.EFiABILIir�TION ' � ' ' _ � INSPECTIOPJ PROCEDURES � � ! � - ' , . . • • • ' f 1�. Request for inspection will com.e from Housing and Redevelopment � � Authority. It will contain in.tor.nation on location and time for • inspection. _ _ .._� _ _ - . � � , �- . � �.;�. . � � 2. Inspection report. format will be as follows : �� ' - -� .-�-- ._. - , A. List of ite�s of high safety or health hazards (as indicated� • on list) . � � 1. Any item found that is of an emergency nature will be . handled separately as in the. past. (Inspector makes separa�� s:�eet that is follow-up as a complaint) . . . B. All other� ccde iteras co��ered bg Housing Code. ' C. Incipient items from check-off sheet. � ' D. Exterior ite�rs, i.e. ' accessory buildings, fences� retaining - wa13s, tool shecls, lzwn steps and handrails, etc. . 3. Inspection reports will be returned to this office, rsvie:ved by supervisor, ty�'�.zd, seat to HnP, and iile on address started. 4. ,Reinsnection will be made via permit issued for work_ ' 5. Sigr. of� o� work scop� will ne done at site. Rehab advisor ` - wiil have sheet. . . - , - . . � • � . Revised �/9/�76 , . , : Pag� 3 of S . ► , , . � � , Descriotion of Irunediate Health and Safety Hazards to be used in �' itzspection for City-S�Tide Rehabilitation Progra^.i. ._ .�_ _ __ _ Ir�►ediate �iealth and Safetv Fia=a,�ss :ae�.zs t�cse violations o�, applicable cod�s wnich :�at-=; '1�'� 2�.� i:nmediately endanger the . health ar.d safety of occupaaLs o� t:e building involved. Such _ violations include, but are r.o:. limited �to: � - A. Heatinq Systems that are unsafe due to: � . , ' � 1. Burned out or rusted heat exchanger. _ - � ' � ' 2. Burned out or plugged fl�ie. � 3. Not vented or inx�roperly vented. 4. Connected wizii u�.safe gas sup�lies. � 5. Gas or oil fired. systens that are not burning: properly. � • (Color of flamz wili be e1Le) . . 6. All gas or oil burners more than ten years old will require a service eall for cleaning ar:d ad;justment and control check. B. Water �Heaters that are unsafe due to: .. . � 1. Burned out �or zusted out heat exchangers (fire box) . 2. Burned out, rusted out, or plugged �lues. . 3 . Unvented. . 4. Connected with unsafe gas supplies. . 5. Lack of tzmperature and pressure relief valves. , C. Electrical Systems tnat are unsafe. due ta: . 1. Dangerous overloading. _ - � 2. Da*lagzd or deteriora��d ec*ui�:nent.. . 3. Improperl;� taUp�CI or spliced wiring. . , 4. Exposed unir_sulaLed wires . � � 5. Distribution sys�ems of extension cords or other temporary methods . � � 6. Ur_grounded systems. 7. Unground�d appliances in contact with earth. 8. All abviously hazardous, irr,�roper and/or i.11�gal �viring � • shall be re;�oved. . � � 9. Overfused disLYibution circuits. - ��0. Overload�d services . . D; P1ur,lb�.nq Svstems• that are unsanitary due to: _ l. Lea?cing t•:aste systerns, fixtures and traps . ' 2. Cross co:n�czicn of �.Llre water supply with fix±ures or se:•�age Zir.�.s . . : � ' :i . h�ater service will need repa�r if: ' a. The pipz and fittinys in meter conr_ec�ion are badly • d�tnrin��LEL1 ox l�a':ing. ,. 4. ��ter distrzbutien �i�ing <<i.'1 need repair if: a. 3adly d�teriora�eci or lca7:it�g piping. � b. Cro �� ccr:r:ecti.on e.:�.^rs . � � 5. Gas pi��i:�g wi_1 need r�.r..:a�r if_ : � a. T�l��gal piping �•�:�;_�h could 'Ne dangerous (cop��er �;i4h . , co,:,�ression �itt_�•ys, copr�er with so�`�c �older joir.ts, u-.�appi:oved plusLic�, cast ir.�n iitti.;s o�1 steel pi�e. concea�ed uni.oi:�, ccpp�r �o_nts) . 2 of 5 � . • . � � . 5. b. Unsupported or sagging p�.ping. • . • c. Lacking a lever handle valve i.nstalled on house pipe � before flexzble connector is Iacking. � . . 6. Waste and Vent will need repair is there are; �, , . a. Ope.n hubs or fittings (inCludes hubs or fittings plugged • with concrete, ete. ) b. Broken or rotted waste or vent pipes. f �. Plugged or non-runctioning waste system. � � - .,•: , , _ __ ?. Floor drains will need repair if there are: ��- a. riissing or bro�:en strainers. - b. Missing clean-out plugs. • • 8. Clea.-�-outs will ha�e: � : � . . "- � —�"- � "� � a. At least one accessible clean-out for building drain: -.. . - b. Clean-out plugs in�act and tigh�. � —` 9. Water heater �•�ill� need repair if tnere is: - -�� a. Soillage of proCUCts or co�r:nus�ion at divertor. � b. Deterio:rat�d vent �ipir,q, � , e. Back pitcheci vent pi�ing. � d. Undersized vent (eith�r smaiYer than diverta� o�.ztlet or because of excessive len�*tn) . ' -- . ...._�_ "" e. Plugged flue passages through heatAr� , �- f. Unap��O�T2C� iemperature pr��s��n w�� ; -. = valv�. � - � -___� - . ---. .- cJ-� Over f iring. � 10. Water close-cs will need repair if: � � a. Bo�•�l is loose on r�oor. ' b. Cracked or excessive liTM:ed bo�•.•i. � c. Unvented in places where this may cause problems when other f�:;tures a�e use3. _ I1_ ;a�ntubs �•;i?i nned repair i�: ' . ' � a. Trup is leak�ng or ta�ed. . b. w'aste and over=low ieaKing, tan�d or rarts r.�;?�s;;:�, c. �Fixtur� ce`erio�aied or cnipped to a d�gree e�: ��co�ing . uns�nitary or e��asing shara ed�es. � d. Trai� net vent�3. � 12. Sink and l�v�torv ;vi?1 need repair �f; � � a. Fi�tu�e ia d�terior�ted or chip�ec� to a point of :beco:nir.g • . unsanitart1 or dangzrous .' • . _ : b. Zirap and e�nosed pipe a.*�d �ub�ng ta�ed or leaking. � _ c. Cro;:�n v�nt discor.r_ecte3 or c."1A3i1G�ez��s. • � _ d. Traps siphoning �or lac�c of vent. � � 13. Launcry tr�vs connected �o c•�ater source will need a praperly � ins�ali�d t��te, trap and ven�. '14. Eathrocm vent�la}�o:;; a. �•rir.doc•� �or mecnanical ventilation must he provi3ed-. 15. Additior,al basic iixtuYes �or 4�aelZing uni�s will be neede3 � if the_e isc a. Lack of basic fixtures a.s requzred in Fiousing Code. • ' E. $��L'.C�LI2'�� V�,`c_,:,5, ::lc].ZS, Ci2r��1��S� r�ofs, TOUT1C73� OI1S, ceilings, . and floor s�sterr.s, �hat wi31 not �safely carry imposed loads. . , , � F. ReTuse, rzrbGCF?� hurc:an waste, c'ecaying vermin:. or other dead anLT;��r, �::n=�=�= �.;a:;-:=°, oi�er r:.a}ezia3s rer.c�e�ing it un�ani�arv for hu:,�an occupancy. . - � Uf J . . � : ~ • G. Infe�tation of rats, insects, and other vermin. Immediate . health an3 sufeLy hazar3. . .' _ " , � . � l. Eviaence oi holes in foundation or yard. � ' �. � 2. � Information given by awner or tenant. • � • . � -� 3. Evidence under sin'x, �ehind refrigerator or range. ' _ H. All �xisting handrails that are 'not permanently and solidly. , . mounted to provide saie service. � �_ � . � I. Lead pa�.^.t tha� is peeling, �hipping, or exposed in .areas that may be hazardous to cniidren and others. 1. Old paint that is peeling or chippir.g either interior or , exterior. S�Tnple to �e submitted ror analysis. Report should in3ica-ee sanple� bein3 ta.�e;� and could result witn order to correc�. � J. Conditicns o� :•�ir.�c�ti•s , doors and o�her structural items that . - are coi.�LS i�a to ?=i�e a:.d s a�ety h?zards . ' l. Each ha�i��lz roo� nust have at I�ast one window that � is openapie' ar.d equipperi wiLh a r.old open device for : e;nergenc� exi.t use. :• . ' , � . K. Lac:{ cf bas�c �acilities (cor.sidered a :�igh h�altY: or safety . ite:�i if t1��re ?s) : � - l. i:o h��t h ' - 2. No water . . 3. No eleczrici�y ' - � A � . . .� �� . `� , . i , . - � � � � . . . . . . - . ... .. � �. _ . .... _ . ' � - � ' � , . �1 , . � . ... . ._.__ -- . � ,j . . . ' . . . � : � • . � � � N�E: Correcti.on of iieTS and conditions listed above may� not satisfy :�-i.� or GI loan re�?uire,�,ents . � � , • � � . � ...� . � . � . , . 4 of 5 ' � � _ . . . � . � . . , , . c� List of incipient itsr,s to be no�cci: . � . � !��,,��.��'�`" � -r , � . • . _� � . _ . _ - • - . . � ., � ` . � -GOOD FAIR POOR � � ' Water heater � . ' � . . . . ----- • -------- . • _ . . _ � Roof � - � ,, � � ' ..�..__ � - ..,� . � . • � . _ . Gutters • ' � - � � � . �...�_ ......_.__ ..�, . Exterior walls , • � ' � . .�.._._.._ ,____--- --�-_ Heatiag plan� • � . • . . . , . , . --- ...; ...r_.. r ounda�ion . . . . . � __._.__.. _._._�. . Chir;,neys � . . ' . ------ _-_____ � Porches ' .: . - � � � Window s ash .- , ._.._.._._. . ._,_.�. Accessory structure� ' • ' - . ----�----- ----------- ------ � . � • - ' . . . . .f . • � . � ' • � • � - . � � - . . , , � .� . - . . i • - � _ . . , ; • � . _ . r . � , • , ' � � : � ` ' � � ' . . _�_ � � . 5 �L 5 � • . . � � ,, . - __ . .. ---_�-__ ...._,��,�..�s.�-:�,,.m:.:�.;,.�>,.��-_•.s_w�:�arxr��ac�>�:._ : ,_ :..- ,. , , �� . . � 4� O1;- 1.��!7" �; . - , . ` Aew. x �/��6 k_ EXPLAN��QN' 4F ADMII�TYST��,T�VE �R��, ' �, T�E54�t�T'T,tX+1S, ANI� t31��TANCES ; . : ; � ': ; :i , " �� , . . . . ; , ga�s� 1Nay 1�, �977 � -; � . � � , _ _ .;;ry TO;� ; MAY�R GFARGE LAT IMER � � F'�: � �Ir. 1li]liam Q. Patton �� - �E: `� Ha�lEe�t�ing �es�lutior� �n City-W�d+� R�ha�b Loan a�nd Gratn� °�og�� t�'��- � � �� „ . . ,. ' , . �, , . . . .. ��. . . , , . . �. , .: . �;� , � a� . AC'�=€��;�T�: Sigrr and_ ��ce� am cauncil agenda. . #t � � � � � ��s � �� ; � f�,�� r . ; ' . �a�a►��'� # , : ,a . v � , , ., : _ � ;� � . . , .. . . . . .. _�. . . .. , . . . ,3 .. . .� t. .. �. . . . . . . � � . . ' . . . . . . . ��3��_A1�D RATTON�,LE FpR 2HSS ACTION: To a�pt char�s app�r�i by ��e: ` . ` , . � . � _��, , * , I��r`s Re�ib �i�r�sary Ca�ni ttee and the Hft�1 Beard bu� �rever s�b�itted ,t� tl� �ur��1. � � � :; ,� , ' �� . , . ATT�►C�M�:NTS. Ac�i r�i strati ve'Order snd copy �� gui d�l i nes � , . . ; ��