ATTACHMENT D
CDBG - Owner Occupied Home Rehabilitation
Program Guidelines
1 City of Palm Springs
OWNER OCCUPIED HOME REHABILITATION
PROGRAM GUIDELINES
City of Palm Springs | Housing and Community Development Department 3200 E Tahquitz Canyon Way | PO Box 2743 | Palm Springs, CA 92263-2743
2 Table of Contents
Section 1 - GENERAL AUTHORITY AND DEFINITIONS ......................................................................... 3 Section 2 - PROGRAM PURPOSE ................................................................................................................. 4 Section 3 - PUBLIC AWARENESS ................................................................................................................ 4 Section 4 - QUALIFICATIONS ...................................................................................................................... 5 Section 5 - ELIGIBILITY INCOME GUIDELINES ...................................................................................... 6 Section 6 - PROGRAM LIMITATIONS ......................................................................................................... 6 Section 7 - LOAN PROGRAM REQUIREMENTS ........................................................................................ 6 Section 8 - INFORMATION REQUIRED FROM ALL APPLICANTS ........................................................ 7 Section 10 - PROGRAMS AVAILABLE ....................................................................................................... 7 GRANTS .............................................................................................................................. 7 Section 11 -LEAD BASE PAINT TESTING AND LEAD HAZARD REDUCTION PLAN ........................ 8 Section 12 - PROGRAM IMPLEMENTATION ........................................................................................... 10 Section 13 - CONFLICT OF INTEREST ...................................................................................................... 11 Section 14 - STAFF INSPECTION- PLANS - SPECIFICATIONS ............................................................. 12 Section 15 - REHABILITATION PLANS & SPECIFICATIONS ............................................................... 12 Section 16 - REHABILITATION .................................................................................................................. 13 Section 17 - OBTAINING BIDS FOR CONSTRUCTION .......................................................................... 13 Section 18 - PREPARATION, RECEIPT AND OPENING OF BIDS ......................................................... 14 Section 19 - QUALIFICATIONS OF BIDDERS .......................................................................................... 15 Section 20 - CONSTRUCTION..................................................................................................................... 16 Section 21 - CONTRACTOR REQUIREMENTS AND RESPONSIBILITIES ......................................... 166 Section 22 - GUARANTEES & WARRANTIES ....................................................................................... 188 Section 23 – REHABILITATION DEFICIENCIES ..................................................................................... 18 Section 24 - SUB-CONTRACTORS ............................................................................................................. 19 Section 25 - GRIEVANCE POLICY ............................................................................................................. 19 Section 26 - CONTRACT PROVISIONS ..................................................................................................... 20
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3 Section 1 - GENERAL AUTHORITY AND DEFINITIONS
1. LEGAL AUTHORITY FOR REHABILITATION GRANTS: Housing Rehabilitation grants are authorized under the U.S. Department of Housing and Urban Development Regulations.
2. DEFINITIONS: Following are definitions of various terms as used with respect to housing rehabilitation grants:
a. APPEALS: Housing and Community Development Director will serve to consider written request for reconsideration of staff’s determinations on program guidelines and eligibility.
b. HOUSING AND COMMUNITY DEVELOPMENT: A department of the City of Palm Springs responsible for the general operation of the program, which includes but is not limited to the initial contact with property owners, preparation of plans and specifications, processing of all grant documents, securing contractors for the owners, inspecting the work, and counseling with grant recipients as needed, providing direction and instructions to contractors, processing payments and maintaining all program files..
c. HUD: The United Stated Department of Housing & Urban Development.
d. OWNER-OCCUPIED PROPERTY: A property that is owned and occupied by the applicant and is used entirely for residential purposes.
e. PRIORITY NEED: From the first come first serve list. In the event the home is damaged and habitation is no longer safe, priority will be given for loss due to natural disasters such as hurricane, fire, flood, etc. upon approval of the Housing and Community Development Director.
A separate first come first serve waiting list is established for catastrophic loss.
f. REHABILITATION: term may be used interchangeably to refer to Rehabilitation projects throughout this handbook.
g. REHABILITATION COST: The total cost of repairs and improvements and other associated costs with the rehabilitation project.
h. VARIANCES: The Housing and Community Development Director will serve to consider written variances for exceptions to program guidelines.
i. VOLUNTARY WITHDRAWAL: Applicants who choose to withdraw from the waiting list will be withdrawn immediately from the waiting list. Applicants who reapply for assistance will be considered new applicants.
4 Section 2 - PROGRAM PURPOSE
The purpose of the City of Palm Springs's Community Development Block Grant Housing Rehabilitation Program is to provide rehabilitation assistance to eligible low and moderate income Homeowners residing in the corporate city limits of the City of Palm Springs. The Program's Objective is to implement a program to arrest the deterioration of substandard single family homes by rehabilitating to conform to the International Property Maintenance Code and its amendments, the City of Palm Springs’ Housing Rehabilitation Performance Manual and other applicable State Laws, City Codes and Ordinances
.
A Housing and Community Development staff person or approved Partner Agency will prioritize the repairs and improvements based on the health, safety, neighborhood enhancement, and needs of the property. Housing and Community Development staff sustains the right and has the discretion to determine and deny the approval of any application based on the reasonableness of the repairs requested for the home.
The goal of this program is to work in partnership with qualified Homeowners to maintain the existing housing stock in decent, safe, sanitary and affordable conditions.
Assistance through any of the programs herein shall be voluntary and relocation assistance shall not be provided.
Assistance is limited to single family residential structures, mobile homes and the inside of condos in HOA associations within the city limits of the City of Palm Springs.
Section 3 - PUBLIC AWARENESS
The Housing and Community Development Department may advertise that it is accepting applications for program assistance through local newspapers or the broadcast media.
Inquiries may be received through a variety of methods, including telephone inquiries, walk-ins and letters. Staff will respond to these inquiries by providing a verbal or written description of program requirements including brochures and other documentation available to the public.
Staff encourages interested and potentially eligible homeowners to schedule a personal interview with a staff member.
Complaints regarding lack of understanding of the program, the level of service provided, the public awareness process, or other matters shall be promptly addressed, if possible, by a staff person. If a complaint cannot be resolved at that level, the complaint will be forwarded to the Housing and Community Development Director for resolution and documentation. If no resolution can be found, the matter will be forwarded to the Deputy City Manager. 5 Section 4 - QUALIFICATIONS
1. Assistance is limited to single family residential structures, mobile homes and the inside of condos in HOA associations.
2. An applicant must be a resident of the City of Palm Springs, and live in the home to be assisted a minimum of 1 year before applying for assistance.
3. Applicants must also have a warranty deed in their name (or other legal document as stated elsewhere within these guidelines).
4. An applicant/household will not be eligible for assistance if:
a. Non-elderly Head of Household has resources (other than home to be rehabilitated), or cash assets in excess of $10,000.00. b. Elderly Head of Household (62 years of age or older), has resources (other than home to be rehabilitated), or cash assets over $20,000.00. c. Disabled Head of Household has resources (other than home to be rehabilitated), or cash assets over $20,000.00.
d. Resources include but are not limited to the following: real property, vehicles and bank accounts.
e. Exempt resources include:
i. home to be assisted and surrounding property.
ii. first family vehicle, vehicles necessary for employment or training related purposes, and vehicles used to transport a physically handicapped person. f. There has been a transfer of resources within two years of date of application by household members for the purpose of qualifying for the program. g. Subject property must be the only real property owned by the applicant.
An applicant who has more than one dwelling structure on the property to be rehabilitated or reconstructed unless the applicant removes the excess structure. An applicant/household who is operating a business out of said home. i. An applicant/household who has failed to meet their bankruptcy obligations. j. A bankruptcy discharge must be:
i. At least 5 years prior to the date of application for Chapter 7. ii. At least 3 years prior to the date of application for Chapter 13. k. An applicant/household who has outstanding judgments. l. An applicant/household is presently delinquent on any Federal debt or has a lien placed against his/her property for a debt owed to the United States Government.
5. An applicant/household who is accepted for assistance shall first remove all abandoned appliances, junked vehicles, trash, rubbish, etc. from the property before assistance is rendered.
6. An applicant/household must meet the low to moderate income criteria as set forth by the Department of Housing and Urban Development's Part V (Section 8) requirements as they are now or may be adopted by HUD on a yearly basis.
7. Total household income is determined by computing the income as required in 24 CFR Part 5. Income of all the persons residing in the household at the time of the application will be included in the calculation.
8. Applicants shall be eligible to apply for assistance under the Housing Rehabilitation Program no more than once per City fiscal year. Any subsequent application submitted within the same fiscal year shall be deemed ineligible for consideration. The City’s fiscal 6 year shall be defined as July 1 through June 30
Section 5 - ELIGIBILITY INCOME GUIDELINES
Eligibility for CDBG housing program support is determined in accordance with income limits established by the Department of Housing and Urban Development. These figures are revised annually by the Department of Housing and Urban Development. The most recent income limits are found in Attachment #1.
Section 6 - PROGRAM LIMITATIONS
1. Any applicant, whose property is located within a 100-year flood plain according to current FEMA Flood Insurance Rate Maps, shall not be eligible for assistance for on-site housing rehabilitation assistance programs.
2. In the case where the Community Development Administrator has determined that the costs for rehabilitation exceed program guidelines ($35,000.00), or more than 50% of the appraised after rehabilitation value, the applicant will be referred to other affordable housing providers for possible assistance through their housing programs. In the event of an emergency concerning health and safety or natural disaster, the Community and Economic Developer Director can approve costs exceeding program guidelines.
3. Homeowners are eligible to receive assistance through the CDBG Residential Rehabilitation program only once every five (5) years. This policy is in place to ensure fair and equitable distribution of resources and to maximize the number of households that can benefit from the program. Prior participation will be verified through program records before approving any new application.
4. The Walk Away Policy applies when it is determined that it is not economically feasible or possible to bring a unit into compliance with Residential Rehabilitation Standards (RRS) within the maximum assistance limits established in Section 10 of the Housing Rehabilitation Program Guidelines.
Section 7 - GRANT PROGRAM REQUIREMENTS
All grant programs will require, at a minimum, the following:
1. Title search on property.
2. Proof of Paid City, School and County Taxes.
3. Verification of income and financial analysis.
4. Property to be located inside the City of Palm Springs city Limits.
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7 Section 8 - INFORMATION REQUIRED FROM ALL APPLICANTS
The following information is needed from all adult household members. An application will not be considered complete and processed until all information is received by the CED Staff.
1. Proof of ownership - Warranty Deed or other document as stated herein.
2. Utility receipts with applicant’s name
3. Copies of the following for all household members over the age of 18:
a. W-2's and 1040's (if employed)
b. Income Tax Returns for the past 2 years
c. Social security cards, current driver’s license or California ID
4. Authorization to obtain the following for all household members over 18:
a. Verification of other income, or assets
b. Verification of Employment
c. Verification of Unemployment check
d. Verification of Social Security, SSI, etc., checks
e. Verification of Bank deposits
5. Receipts of paid City, School and County Taxes
6. HUD prohibits providing assistance to persons not lawfully present in the United States. All contributing members of the household receiving Program funds must be either a:
1. Citizen of the United States
2. Permanent Resident Alien
3. Temporary Resident Alien with authorization work in the United States.
The Program reserves the right to request documented verification as a condition to making an eligibility determination of the Applicant.
Section 9 - TEMPORARY RELOCATION
Applicants agree that participation in the program is voluntary and to voluntarily relocate during Lead Based Paint activities and general construction.
Voluntary homeowner rehabilitation does not trigger relocation requirements as per the Uniform Relocation Act for the homeowner.
Section 10 - PROGRAMS AVAILABLE
GRANTS
The Housing and Community Development Department provides grants to qualified homeowners for the rehabilitation of their single-family, condo or substandard mobile homes.
1. Grant applications are accepted in person at the City of Palm Springs Housing and Community Development Department, C/O Noe Arechiga 3200 E Tahquitz Canyon Way, Palm Springs, CA 92263.
8 2. Applicants must meet the following requirements:
a. Income: Applicant’s total income may not exceed 80% of the median income for the area, adjusted to family size.
b. Ownership: Applicant/Homeowner(s) must live in said home and have clear title to property.
c. Applicant must have an ownership interest in any one of the following types of ownership in the property to be improved:
a) Individual fee ownership with recorded deed (no corporate, trust, legal partnerships, etc.); or
b) Individual fee ownership subject to a mortgage or other lien securing debt; or
c) An ownership interest in a properly recorded land contract; or d) A life estate interest provided the following are met:
1. The life estate person occupying the dwelling to receive assistance must be income eligible.
2. The life estate agreement terms must be written, signed, and recorded in the public records of Riverside County, California.
3. Both the owner of the life estate and the holder(s) of the remainder interest must sign program documents.
4. The holder(s) of the remainder interest must sign the “Life estate Responsibility” form.
d. Taxes: City, School, and County Taxes must be paid and up to date at the time application is submitted.
3. Housing rehabilitation grants are for a maximum of $35,000.00 per home.
4. Qualified Applicants who own a home built prior to 1978 will be provided a grant that covers 100% of the total expense to perform a Lead Base Paint Risk Assessment/Inspection, all lab fees, interim controls and/or abatement procedures, and clearance testing to ensure that the home is lead safe.
5. Any expenses classified as costs related to Lead Base Paint Hazard Evaluation and Reduction Costs shall be covered by a grant and not be included when calculating Rehabilitation costs.
Section 11 -LEAD BASE PAINT TESTING AND LEAD HAZARD REDUCTION PLAN
All Applicants qualifying for assistance under any of the grant programs for rehabilitation will have their homes tested for lead based paint according to HUD guidelines if their home was constructed prior to 1978 except those properties exempt under the following:
Residential structures built after January 1, 1978.
Emergency action activities (Natural Disaster).
Existence of Lead Based Paint unlikely:
Areas where state and local governments banned lead-based paint prior to January 1, 1978. 9 Properties found not to contain lead-based paint during earlier testing that meets the requirements of prior evaluations.
Properties where all lead-based paint has been identified and removed using approved methods.
Human threat Unlikely:
Unoccupied units that will be demolished.
Property not used for human residential habitation.
Rehabilitation that does not disturb paint.
Homeowners shall be provided with information about the hazards of lead-based paint. Testing shall be completed by a certified lead based paint testing professional. Personnel shall be required to follow all HUD standards regarding the testing of lead base paint.
The following actions must be taken to protect occupants from lead-based paint hazards associated with lead hazard reduction activities.
Occupants may not enter the worksite during lead hazard reduction activities. Reentry is permitted only after lead hazard reduction activities are completed and the dwelling has passed a clearance examination.
Occupants of the unit must temporarily relocate during lead hazard reduction activities.
Relocation shall be voluntary as part of the program assistance to be provided. Relocation must be done before lead hazard reduction activities begin.
Relocation is recommended when lead reduction procedures require that:
1) Utilities such as water, electricity, and gas are turned off for periods exceeding eight hours. 2) Lead reduction takes place in the kitchen or available bathrooms. 3) Extensive lead reduction in several rooms requiring work over several days. 4) Occupants cannot be prevented from entering the containment site after hours. 5) Debris and lead dust cannot be contained in the worksite and may spread to occupied areas. 6) A pregnant woman or a child under the age of six occupies the home.
Circumstances when occupant relocation is not required:
1) Treatment will not disturb lead-based paint or lead-contaminated dust. 2) Treatment of the interior will be completed within one period in eight daytime hours, the site will be contained, and the work will not create other safety, health, or environmental hazards. 3) Only the building’s exterior is treated; the windows, doors, ventilation intakes, and other openings near the worksite are sealed during hazard reduction activities and cleaned afterward; and a lead safe entry is provided.
4) Treatment will be completed within five calendar days; the work area is sealed; at the end of each day, the area within 10 feet of the containment area is cleared of debris; at the end of each day, occupants have safe access to sleeping areas, bathroom, and kitchen facilities; and treatment does not create other safety, health, or environmental hazards.
Occupants belongings should be protected from lead contamination during lead hazard reduction activities by relocating or covering and sealing them and ensure that the worksite is secured. 10 Section 12 - PROGRAM IMPLEMENTATION
METHOD OF IMPLEMENTATION FOR REHABILITATION AND EMERGENCY GRANT
PROGRAMS
1. Applications for assistance under any of the programs contained herein will be processed and reviewed by the Housing and Community Development Staff.
2. The Housing and Community Development Staff will formally accept or reject all applications for assistance based on meeting program requirements by staff review of submitted information received from the applicant, Title Company, etc.
3. Applications for program assistance will be taken on a "first come first serve" basis, except in emergency assistance cases.
4. Applicants will be chosen for eligibility review from a waiting list.
5. If an applicant is eligible for assistance, the Housing and Community Development Staff will help homeowner, if he/she/they so chooses, through the bidding process by advertising for proposals and receiving bids from general contractors.
6. Bid proposals must be according to the guidelines established by the Housing and Community Development Department to ensure compliance with the requirements applicable to the use of federal funds.
7. Homeowners Insurance shall be required for any home assisted through the Housing and Community Development Department’s Housing Rehabilitation Program.
8. In order to ensure maximum use of CDBG funds, the lowest most responsible bidder will be awarded the rehabilitation project. In cases where the lowest bid exceeds the maximum grant limit, the Homeowner(s) will have the option of:
a. Paying the difference over the maximum grant amount, or b. Reducing the amount of work to be done to comply with the maximum grant limits (although all safety, health and code violations shall not be omitted from specifications), or
c. The home may be rejected from participation in the rehabilitation program as said property will be considered beyond rehabilitation program assistance, and the project may be referred to other affordable housing providers housing programs.
9. After the Contractor has been selected, the Housing and Community Development Staff will fund for assistance through one or more of the programs previously described.
10. All activities undertaken in the Housing Rehabilitation Program are subject to the conditions and provisions set forth in the program's Mechanic's Lien Contract, Rehabilitation Contract, which is signed by both the Contractor and Homeowner(s) before commencement of the work.
11. If an unforeseen problem arises during the construction period, a change order may be submitted.
12. Change orders, if necessary, will be reviewed on a case-by-case basis and must be approved in writing by the City of Palm Springs Staff, Housing and Community Development Director, Contractor and Homeowner(s) before proceeding with the work being requested.
13. Grant amount including change orders may not exceed the maximum grant limits, unless an unforeseen problem arises such as (including, but not limited to):
a. Deteriorated roof decking
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11 b. Deteriorated foundation beams
c. Faulty electrical wiring
d. Damaged plumbing lines (gas, water, sewer)
e. Interior wall and roof framing damage.
14. Change orders for unforeseen items, may not exceed 15% of the maximum grant limit or 25% of the original bid amount.
15. All participants (Applicants and Contractors) must abide by the Housing Rehabilitation Program Guidelines and procedures as established by the Housing and Community Development Housing Program Staff to participate in the program.
16. The City of Palm Springs Staff will:
a. Assist the Homeowner(s) in ensuring that all work is completed and passes city inspection according to established specifications, floor plans and/or City's Building Code and Ordinances.
b. Conduct a final inspection of the structure when notified to do so in writing by the Contractor.
c. When final inspection determines that the rehabilitation work has been satisfactorily completed according to the Specifications, floor plans, construction contract, City of Palm Springs' Housing Rehabilitation Performance Manual and all applicable City Codes and Ordinances, and obtain from the Contractor a signed "Contractor's Affidavit", along with affidavits from the electrician’s and plumber’s if applicable. Warranties for specific items will also be requested from Contractor before final payment is made.
17. Homeowners and Contractors are encouraged to resolve any dispute among themselves.
18. If Homeowner(s) and Contractor are not able to reach a mutual agreeable solution, then the dispute may be brought before the Housing and Community Development Department to review the situation and make a resolution ruling.
19. If the ruling is unacceptable by both parties, then the parties may seek legal recourse. The City of Palm Springs will not be a party to such litigation.
20. Applicants who cancel applications after title search, lead based paint inspection/testing, and/or specifications have been made shall be charged upfront for the soft costs (including staff time) to be expended when they reapply.
21. Applicants who postpone their applications will be placed at the bottom of the waiting list.
22. The City of Palm Springs will maintain all applications and files as required by the U.S.
Department of Housing and Urban Development and will be available for review by the U.S. Department of Housing and Urban Development Staff.
Section 13 - CONFLICT OF INTEREST
The City of Palm Springs covenants that neither member of its organization nor staff member who exercises influence on the decision making process presently has or will have any interest, direct or indirect, with any person, corporation, company or association hired to carry out any program activities or is a beneficiary of any program activity. All program participants will be required to sign a Conflict of Interest statement under which any existing or potential conflict of interest must be revealed.
12 Section 14 - STAFF INSPECTION- PLANS - SPECIFICATIONS
The City of Palm Springs will visit the site of the proposed project to do an inspection of the home and develop a preliminary work write-up.
1. In regard to rehabilitation, primary areas to be inspected and evaluated will be those outlined in the International Property Maintenance Code. This code provides the minimum requirements necessary to maintain any residential occupancy in a safe and sanitary condition. Compliance with the American Disability Act will be required for those persons assisted with a physical disability.
2. Following the preliminary inspection, the City of Palm Springs will help Homeowner(s) in developing the specifications explaining work that is to be needed to make the home safe, decent, and sanitary.
INSPECTION PHASE
a) Once initial eligibility has been determined, Housing and Community Development Department Staff will schedule an on-site inspection of the property with the appropriate partner agency and homeowner.
b) Housing and Community Development Department Staff/Partner Agency will inspect the property and ensure that homeowner is informed of all program requirements, documents, and terms of program participation.
c) Pictures of the dwelling and yard will be taken. Pictures need to be inclusive of the entire property and should consist of, at a minimum, the following:
a. Direct frontal view taken from across the street;
b. Corner frontal view taken from across the street;
c. Corner frontal view taken from across the street from the opposite direction; d. Same views from any other street frontages if the home is on a corner lot; and e. Localized areas of repair.
d) In cooperation with the applicant, the Housing and Community Development Department Staff/partner agency will prepare a scope of work. The Scope of Work describes the problem(s) identified during the on-site inspection of the property and will be presented to a homeowner for review, comment, and approval. Housing and Community Development Department Staff should understand and be specific in their definition of the scope of work.
Specificity ensures that bids are comparable and enhances the ability of the contractors to accurately respond to the bid request.
e) The Scope of work must address the following priorities of repairs:
i) Health and Safety Issues/Systems
ii) Exterior Improvements
iii) Energy Efficiency Measures
Section 15 - REHABILITATION PLANS & SPECIFICATIONS
After the floor plan and specifications have been completed, the City of Palm Springs Staff will provide applicant with a preliminary cost estimate for all repairs to be made on home.
13 If the estimated construction cost exceeds the maximum grant limit, and applicant cannot pay for the excess cost to meet codes adopted by the City, the City of Palm Springs Staff shall refer the applicant to other affordable housing providers for consideration in their housing programs.
Section 16 - REHABILITATION
Upon approval of the plans and specifications by Homeowner, the City of Palm Springs Staff will develop detailed bid specifications and floor plans to provide bidding Contractors with a description of all work that is to be completed.
Detailed specifications will include a floor plan of the structure and a detailed description of all work to be done. Applicant will be required to sign a "Certificate of Acceptance" form. This is to confirm their agreement and full understanding of the scope of assistance to be provided.
Section 17 - OBTAINING BIDS FOR CONSTRUCTION
The Housing and Community Development Department will assist Homeowners through the bidding process by advertising for bidders via local newspaper, internet, email, or fax.
1. A maximum of fifteen (15) days will be given to allow Contractors enough time to prepare a bid and meet HUD regulations.
2. Staff will hold a pre-bid conference with all bidding Contractors to discuss any questions regarding specifications, floor plans and site locations.
3. Contractors must submit bids for Housing Rehabilitation projects to the Housing and Community Development Department in a sealed envelope within the time allotted, as specified in advertisement for bids, otherwise bids will not be considered.
4. All bids will be opened at a scheduled bid opening as specified in advertisement for bids.
5. Contractors will be awarded a maximum of two (2) contracts per bidding cycle. This limit may be waived by the Housing and Community Development Director provided that the Contractor has demonstrated capacity and experience on prior projects with the City of Palm Springs Housing and Community Development Department and negotiations with the second lowest bidder have failed. In the case that a Contractor is determined to be the lowest bidder on more than two contracts and does not have the demonstrated experience and capacity, the contracts to be awarded to the next lowest bidder upon determination the bid is reasonable and justifiable. The remaining bids will be awarded to the next lowest qualified bidder(s). Contractors bidding for the first time, and being low bidder on more than one home, will only be awarded one home.
6. Bidders proposals will be in effect for thirty (30) days after correctly submitting bid.
7. Upon award of a bid, Homeowner(s) shall issue a Notice to Proceed to Contractor no later than fifteen (15) days from the bid award date.
8. If the foregoing time limits are exceeded, it shall be the Bidders prerogative to withdraw his/her bid in writing, if he/she so desires.
9. If all bids are over the maximum grant limit amount, bids will be reviewed by the Homeowner(s) and City of Palm Springs Staff to decide what items, if any, listed in the Specifications can be eliminated, but still address all code related repairs. 14 a. Non code related repairs may be eliminated to bring project within maximum grant limits.
b. If project cannot be reduced to the maximum grant limit amount, the applicant may choose to pay the difference, up to 20% of the grant limit amount.
10. Once a Contractor has been selected, authorization to start construction will be in a Notice to Proceed Order to the Contractor.
11. Contractor will be required to start construction on project within ten (10) working days of contract signing.
12. Following approval of grants by Department, the Housing and Community Development Staff will prepare grant documents and notify applicant of the closing date.
13. During the grant closing process, all necessary grant documents and construction contracts will be signed by Homeowner(s) and Contractor.
14. The Homeowner, Contractor, and Housing and Community Development Staff shall attend the grant closing.
15. Contractors must register to get a Business License and get permits with the Building Department.
Section 18 - PREPARATION, RECEIPT AND OPENING OF BIDS
Each bid must be submitted on the supplied form and be accompanied by:
1. Non-Collusion Affidavit;
2. Agreement to provide the following:
a. Proof of General Contractor’s and Subcontractor’s (plumbers, electricians, etc.) business license with the City of Palm Springs.
b. List of all subcontractors;
c. Proof of General Liability & Automobile Insurance
3. Bids will be received by the Housing and Community Development Department of the City of Palm Springs until date and time specified on public notice, and then publicly opened and read aloud.
4. The envelopes containing the bids must be sealed, addressed to the City of Palm Springs Attn: Noe Arechiga, Housing & Community Development Dept. 3200 E Tahquitz Canyon Way Palm Springs, CA 92262 or via email to Noe Arechiga at [email protected].
5. The City may consider informal any bid not prepared and submitted in accordance with the provisions thereof and may waive any informalities or reject any and all bids. Any bid may be withdrawn prior to the above scheduled time for the opening of bids or authorized postponement thereof.
6. Any bid received after the time and date specified shall not be considered.
7. Two qualified bids correctly submitted as specified above, shall be preferred per bid opening on each project.
8. The City reserves the right to reject any or all bids.
9. All required forms must be submitted at the time of bid opening .
10. Contractor and subcontractors must be in good standing and not be indebted to the City of Palm Springs.
15 Section 19 - QUALIFICATIONS OF BIDDERS
1. The City may make investigations as deemed necessary to determine the ability of the bidder to perform the rehabilitation work and the bidder shall furnish to the City of Palm Springs all such information and dates for the purpose as the City may request.
2. The City reserves the right to reject any bid if the evidence submitted by or investigation of, such bidder fails to satisfy the City that such bidder is properly qualified to carry out the obligations of the contract and to complete the work contemplated therein.
3. Conditional bids will not be accepted.
4. Bidder must agree to commence work on or before a date to be specified in a written "Notice to Proceed" from the Homeowner(s) and to fully complete the improvements within the time period specified in the contract between the Homeowner(s) and Contractor.
5. Bidder must agree to also pay, as a penalty for not complying with the time specified in the Contract, the sum of $75.00 for each working day beyond the time specified.
6. Each bidder must inform himself/herself fully of the conditions relating to the construction of the project and the employment of labor thereon.
7. Contractor/Bidder will acknowledge that he/she is familiar with conditions enabling him to estimate costs or work as called for.
8. Quantities and dimensions as indicated on specifications and floor plans are approximate.
9. It is the Contractors responsibility to verify all quantities and dimensions for the purpose of estimating. Failure to do so will not relieve a successful bidder of his obligations to furnish all material and labor necessary to carry out the provisions of his/her contract.
10. Insofar as possible, the Contractor, in carrying out his/her work must employ such methods or means as will not cause any interruption of, or interference with the work of any other Contractor.
11. If a Homeowner remains in the home during rehabilitation of the home, and a utility is to be turned off for rehabilitation purposes, and left off for more than twenty-four hours, there will be a fine of $50.00 per day unless temporary facilities are set up on the premises at the Contractor’s expense.
12. No interpretation of the meaning of the plans, specifications or other pre-bid documents will be made to any bidder orally.
13. Any and all such interpretations and any supplemental instructions will be in the form of written addenda to the specifications which, if issued, will be mailed to all prospective bidders or may be distributed at the pre-bid conference.
14. Failure of any bidder to receive any such addendum or interpretation shall not relieve such bidder from any obligation under his/her bid as submitted.
15. All addendums so issued shall become a part of the Contract documents.
16. The Bidder's attention is directed to the fact that all applicable State Laws, Municipal Ordinances and the rules and regulations of all authorities having jurisdiction over construction of the project shall apply to the contract throughout and they will be deemed to be included in the contract the same as though herein written out in full.
17. At the time of opening of bids, each bidder will be presumed to have inspected the site and to have read and to be thoroughly familiar with the plans, specifications and contract documents (including all addendum and/or interpretations). 16 18. The failure or omission of any bidder to examine any form, instrument or document shall in no way relieve any bidder from obligation in respect of his/her bid.
Section 20 - CONSTRUCTION
During the construction phase, the City of Palm Springs Staff will make periodic inspections to ensure work is completed in a satisfactory manner and to ensure compliance with specifications, floor plans, City codes, City of Palm Springs Housing Rehabilitation Performance Manual and other terms and conditions of the construction contract.
Section 21 - CONTRACTOR REQUIREMENTS AND RESPONSIBILITIES
1. Contractors shall be required to furnish evidence of the following:
a. Commercial General Liability Insurance protecting the Owner(s) in an amount of not less than $500,000.00 Each Occurrence, $500,000.00 General Aggregate; b. $500,000.00 Products & Completed Operations Aggregate in case of bodily injury including death and property damage (inclusion of Builder's Risk Ins.) arising out of the work performed by or on behalf of the Contractor;
c. Automobile Liability Insurance coverage in an amount of at least $20,000.00 each person, $40,000.00 each accident for bodily injury including death and $15,000.00 for property damage, as required by the Texas Safety Responsibility Act.
2. Plumbers and Electricians hired by Contractors must have master license for their respective trades and have their professions registered with the NAME OF GRANTEE.
Plumbers and Electricians will be required to obtain their own permits.
3. General Contractor will not be allowed to pick up permits for their Plumbers or Electricians.
4. Contractor shall be required to obtain all necessary building permits before starting construction.
5. Contractor will also call upon the proper authorities for code compliance inspections and assume the fee for the same.
6. Contractor shall submit sealed bids promptly and accurately to the Housing and Community Development Department at City of Palm Springs, ATTN: Noe Arechiga, 3200 E Tahquitz Canyon Way, Palm Springs, CA 92262, on or before the time specified in the bid packet.
7. Contractors will be allowed to visit proposed construction sites after bid packets are issued.
8. During the pre-bid conference Contractor will clarify if so needed, with the Housing Rehabilitation Staff, any item stated on the specifications, otherwise, the specifications shall remain as written.
9. Contractor shall review specifications with accompanying floor plans so that any item or any work specified in either the specifications or floor plans are to be executed the same as if occurring in both.
10. Any items of labor or articles of materials that are neither directly nor indirectly shown on the drawings or mentioned in the specifications but are nevertheless necessary for proper completion of the obvious intention hereof, are to be provided by the Contractor in his bid.
17 11. Should any drawings or dimensions be omitted on the scale drawings where are necessary for a clear and comprehensive understanding, or should any errors appear in either, it will be the responsibility of the Contractor to advise the proper parties, but not go on with the work in uncertainty.
12. All materials of all kinds and character, except those materials included in the contract of a subcontractor, are to be furnished by the General Contractor unless otherwise therein described.
13. The Contractor is to furnish all transportation, labor, materials, apparatuses and tools for doing the entire work in the best possible and most rapid manner; and to its entire proper and substantial completion.
14. The Contractor shall be responsible for removal or trimming of any trees, shrubs, etc.
15. The Contractor shall be held responsible for any violation of City Ordinances.
16. The Contractor shall remove all rubbish, waste material and construction material from site no less than once a week, and keep the premises as clean as possible during the process of the rehabilitation work.
17. At the time of project completion, the Contractor shall deliver the building in a broom clean condition.
18. Contractor shall be required to commence work within ten (10) working days from contract signing (or as stated in the Notice to Proceed), and shall meet deadline for completion of project as specified in the Construction Contract.
19. Contractor shall follow Lead Base Paint Safe Work Practices in the event lead base paint is found in the home.
20. Any Contractor exceeding the deadline will be penalized according to the Construction Contract. Contractors will be given one additional work day for every approved rain day during the construction period as specified in the Construction Contract.
21. All labor is to be done in a skillful and thorough manner. All material to be of the dimension, design and grade as specified.
22. Unless specified otherwise, any patented materials specified by trade name are to be applied or installed strictly according to manufacturer's specifications.
23. Contractor shall be responsible for any subcontractors hired to do any part of this contract.
24. Contractor will be allowed one extension on each job, providing said extension is justifiable and requested by Contractor in writing.
25. Any telephone wiring, cables for internet, surveillance equipment, etc., removed or damaged by Contractor or Subcontractor shall be replaced or reinstalled at Contractor's expense.
26. Property items that do not call for removal on the specifications shall be reinstalled or replaced by Contractor before final inspection.
27. Contractor shall request final inspection only when the job is 100% complete.
28. Final inspection shall include among other requirements, trash removal from premises.
29. Plumbing and electrical work will need to be inspected and approved by the City of Palm Springs Building Department before final payment can be made to General Contractor.
30. When job is 100% complete, the Contractor shall submit a General Contractor's notarized sworn affidavit that all material suppliers and subcontractors have been fully paid, and liens against the property have been released.
31. Contractor shall submit all pay requests in writing, no less than five (5) working days before payment being issued.
18 32. Drawdown requests for contractor payments will not be processed until all documents for payment have been signed by Homeowner, Contractor and Housing and Community Development Staff.
33. Payments to General Contractor for Rehabilitation work will be made out according to completion percentage as specified below:
Draw 1 - 30% completion payment less 10%
Draw 2 - 30% at 60% completion less 10%
Draw 3 - 30% at 100% completion less 10%
Final Draw - 10% after completion of all punch list items.
Section 22 - GUARANTEES & WARRANTIES
1. Contractor shall guarantee all work detailed in the specifications from date of final acceptance by Homeowner(s) and the Housing and Community Development Department.
2. Contractor must respond to life, health, and safety defects within 24 hours.
3. Contractor shall give Homeowner(s) and the Housing and Community Development Department a copy of all manufacturer’s and suppliers written warranties covering material and equipment furnished under the contract from Contractor.
4. Contractor shall present Homeowner(s) and the Housing and Community Development Department, at a minimum, written copies of manufacturer warranties as follows:
a. Shingle Roofing -- Copy of manufacturer’s warranty (Min 25 year) b. Water Heater
c. Air Conditioning/Heating equipment
5. Guarantee periods (beside manufacturers warranties) are as follows:
1 year: for any newly installed sheetrock, framing, insulation, exterior siding and trim, roofing, flooring, foundation (leveling) exterior and interior doors and windows.
2 years: New electrical wiring, plumbing lines and central air conditioning and heating.
Section 23 – REHABILITATION DEFICIENCIES
1. Deficiencies during the 1-to-2-year warranty period must be corrected within ten (10) working days from Contractor being notified by the Homeowner(s) or in some cases from the City of Palm Springs Housing and Community Development Department on behalf of Homeowner, unless a danger exists to Homeowner. In this case repairs shall be done immediately upon notice.
2. If Contractor fails to repair said items after verbal notice, Contractor will be notified via certified mail to correct items within 10 days upon receipt of said notice. However, if a danger exists, repairs shall be done immediately upon notice.
3. If Contractor fails to repair said warranty items within the ten (10) day period in the certified notice, the Homeowner has the option of requesting in writing that the City hire another Contractor to make repairs.
19 4. If a Contractor fails to honor any work covered during the warranty he shall be deemed ineligible for any future program participation.
5. With respect to all work performed under this contract, the Contractor shall:
a. Comply with the safety standard provisions of applicable laws, building and construction code and the "Manual of Accident prevention in Construction" published by the Associated General Contractors of America," the requirements of the Occupational Safety and Health Act of 1970, (Public law 91-956), and the requirements of Title 29 of the Code of Federal Regulations Sec. l5l8, as published in the Federal Register Vol. 36, #75, Saturday, April 17, 1971. b. Exercise every precaution at all times for the prevention of accidents and the protection of persons (including employees), and property. c. Maintain at his/her office or other well-known place at the job site, all articles necessary to give first aid to the injured, and shall make standing arrangements for the immediate removal to a hospital or a doctors care of persons (including employees who may be injured on the job site.)
d. In no case shall employees be allowed to work at a job site before the employer has arranged for removal of the injured person(s) to a hospital or doctor's care.
Section 24 - SUB-CONTRACTORS
The General Contractors are specifically advised that any person, firm or party to whom it is proposed to award a subcontract under this contract must:
1. Be acceptable to both the Homeowner(s) and the Housing and Community Department.
2. Approval of the proposed contract award cannot be given by the Housing and Community Development Department unless and until the proposed subcontractor has submitted the required documentation stipulated in the bid documents and/or other evidence showing that they have fully complied with any requirements to which they are subject to.
3. Although the bidder is not required to attach such certifications by proposed contractors to his bid, the bidder is hereby advised of this requirement so that appropriate action can be taken to prevent subsequent delay.
4. Electrician, mechanical, and plumbing subcontractors will obtain permits from the Building Inspection office. General Contractors will not be allowed to pick up permits for Plumbers or Electricians.
Section 25 - GRIEVANCE POLICY
1. Any person who has applied for participation and/or received assistance under the Housing Rehabilitation Program may register any complaints in writing with the Housing and Community Development Department.
2. The Housing and Community Development Director shall have thirty (30) days to respond to said complaint.
3. If Housing and Community Development Director’s response is unsatisfactory, Complainant may then request in writing a review of the matter by the Deputy City Manager.
4. The Deputy City Manager shall review complaint as registered in writing. Review will contain:
20 a. Initial written complaint submitted to the Housing and Community Development Director
b. Response from the Housing and Community Development Director. c. Complainants request for review by the Deputy City Manager. d. Any information provided by Complainant or Housing Rehabilitation Staff directly related to the written complaint.
5. The Deputy City Manager, upon reviewing all related information to complaint, shall make the final decision on the complaint.
6. The decision shall be provided in writing to Housing and Community Development Director and Complainant within fifteen (15) days.
7. The Deputy City Manager shall act in an advisory capacity to correct the issue being reviewed.
8. If Complainant is dissatisfied with the decision of the Deputy City Manager, Complainant may then write to the U.S. Department of Housing and Urban Development (the funding agency for the Community Development Block Grant Program).
Section 26 - CONTRACT PROVISIONS
1. The City of Palm Springs may make such investigations as deemed necessary to determine the ability of the Contractor to perform the rehabilitation work and the Contractor will furnish to the City all such information and dates for the purpose as the City may request.
2. The City reserves the right to reject any bid if the evidence submitted by or investigation of such Contractor fails to satisfy the City that such Contractor is properly qualified to carry out the obligations of the contract and to complete the work contemplated therein.
3. Failure to comply with all provisions of the Program Guidelines, the Housing Rehabilitation Contract, City of Palm Springs' Contractors Performance Manual and all applicable City Codes' and Ordinances will constitute grounds for corrective action by the City and may disqualify Contractors participation in the Housing Rehabilitation Program.
Section 27 – DOCUMENT MAINTENANCE
These guidelines/policies will undergo the normal periodic process of revisions, corrections, and additions to ensure compliance with federal regulations and the intent of the program. Any changes due to statutory or regulatory requirements or changes to existing policies approved by the City Council to incorporate changes made to existing policies codified in the Code of Federal Regulations are also considered as non-significant and can be approved at the staff level.
Approved this 22 day of April, 2026 Deleted: 3
Deleted: 5
21 Affidavit, 11, 14, 22
appeal, 20
Authorization, 6, 22
Bid
proposal, 10, 22
bid proposal, 10
bidder, 10, 13, 14, 15, 19
bidders, 13, 15
cancel, 12
Change orders, 11
Code, 4, 11, 12, 18
contract, 5, 11, 14, 15, 16, 17, 18, 19, 20
Contract, 11, 15, 17, 20
death, 16
demolished, 9
Disabled, 5
electrical, 11, 17
Electricians, 16
Eligibility, 6, 22
eligible, 4, 5, 6, 10
emergency, 8
Emergency
emergency, 8, 9, 10
flood plain, 6
floor plans, 11, 13, 15, 16
grant, 5, 8
Grievance, 4, 19, 20
guarantee, 18
Head of Household, 5
Elderly, 5
Non Elderly, 5
Income, 6, 7
income, 4, 5, 6, 7
income limits, 6
Income Tax, 6
inspection, 6, 8, 11, 12, 17
inspections, 15, 16
Insurance, 6, 16
Lead Base Paint, 8, 17
loan closing, 14
maximum, 8, 10, 11, 12, 13
Notice to Proceed, 13, 15
Occupants
occupants, 8, 9, 10
operating a business, 5
Ownership, 7
payment, 11, 17
Payments, 17
permits, 16, 19
Plumbers, 16
postpone, 12
pre-bid conference, 13, 15, 16
qualified contractor, 10
registration, 14
Relocation, 9
requirements, 4, 5, 7, 8, 9, 10, 12, 17, 18, 19
Social security, 6
specifications, 3, 10, 11, 12, 13, 15, 16, 17
Taxes, 6, 7, 8
Title search, 6
Total family income, 5
Utility receipts, 6
Verification, 6, 22
Verification of
Bank Deposits, 6
Employment, 6
Social Security, 6
Unemployment, 6
W-2's and 1040's, 6
waiting list, 3, 10, 12
warranty, 5, 18
Warranty Deed, 6