rIALTO rEVIVE: home rEHABILITATION GRANT Program
HOME Rehabilitation Grant Program GUIDELINES
2024Community Development DEPARTMENT2024Community Development DEPARTMENT 2024
Community Development DEPARTMENT
2024
Community Development DEPARTMENT
Contents
Section I – Overview of Program 3
Source of Funds 3
Introduction 3
Program Administration 3
A. Regulations Governing the Program: 3
B. Staff and Authority: 3
C. Consistency with Consolidated Plan: 3
D. Environmental Review Record: 3
E. Files and Record Keeping: 4
F. Financial Reporting: 4
G. Funding Availability: 4
H. Conflict of Interest: 4
I. Fair Housing and Equal Opportunity: 4
J. Labor Compliance: 5
K. Amending the Policies and Procedures Manual: 5
L. Exceptions to Program Policies and Procedures: 5
M. Outreach: 6
Section II – Rialto Revive: HOME Rehabilitation Grant Program 6 Description 6
Amount 6
Repayment 6
Section III – Eligibility Requirements 6
Program Requirements 7
Applicant Eligibility Criteria 7
Household Income 7
Debt Ratios and Credit 8
City Employees 8
Property Eligibility Criteria 8
Section IV – Uses of Program Funds 9
Eligible Uses of Funds 9
Ineligible Uses of Funds 9
Hierarchy of Grant Funds 10
Section V – Eligible Repairs and Rehabilitation 10
Section VI – Rehabilitation Standards 11
Section VII – Application and Funding Process 23
Application Phase 23
Interest List 23
Application Review 23
Application Interview 24
Application Process 24
Property Ownership Documentation 25
Income Documentation 26
Special Circumstances 27
Grant Processing Timeline 27
Property Inspection and Contractor Selection 27
Bid Process 29
Bid Requirements 29
Contractor Qualifications 29
Verification of Contractor Qualifications 30
Disqualification of Contractors from the List 30
Contractor Selection 30
Evaluation and Approval Procedures 31
Pre-Construction Conference 31
Rialto Revive: HOME Rehabilitation Grant Program Agreement 31 City Permits 31
Contractor Payment Schedule 31
Progress Payment 32
Progress Inspections 32
Lead Monitoring 32
Final Payment 33
Final Inspection 33
Warranties 33
Change Orders 33
Grievances between Homeowner and Contractor 33
Termination of Agreement 34
Contractor Substitution 34
File Completion and Close-out 34
Section VIII – Additional Funds 34
Section IX – Other Requirements 34
Section X – Duplication of Benefits 34
Section I – Overview of Program
Source of Funds
The City of Rialto (City) Rialto Revive: HOME Rehabilitation Grant Program (Program) is being funded by the U.S. Department of Housing and Urban Development (HUD), HOME Investment Partnerships Program (HOME). These funds are intended to provide decent housing and a suitable living environment and expand economic opportunities, principally for low and very low-income families and individuals.
Introduction
The Rialto Revive: HOME Rehabilitation Grant Program (Program) will provide financial assistance to low-income homeowners for housing rehabilitation projects where the property serves as the household’s principal residence. Financial assistance consists of grants of up to thirty thousand dollars ($30,000). The Program grant amount will be forgiven over a five-year period, with one-fifth (1/5) or twenty percent (20%) of the total amount forgiven each calendar year.
The Program will be implemented in accordance with these Program Policies and Procedures. The Community Development Department (Department) of the City of Rialto and its designee(s) are responsible for Program implementation in accordance with Program Policy.
Program Administration
Regulations Governing the Program:
The Program’s Policies and Procedures follow and conform to Federal and State regulations governing HOME Rehabilitation programs and Policies and Procedures governing the activities of the City.
If the contents of this guide conflict with any of the above, it is the regulations noted above, that prevail.
Staff and Authority:
The Program is managed by the Department. The Department Director (Director) is responsible for delivering the Program and enforcing these Policies and Procedures. The Director may delegate duties of the Program delivery to the full-service pubic agency (Consultant) or other City employees (City Staff), as appropriate.
Consistency with Consolidated Plan:
Program funds must be used in a manner that is consistent with the activities stipulated in the City’s Annual Action Plan, and that are supportive of the goals specified in the Consolidated Plan.
Environmental Review Record:
The City Staff or Consultant and/or its designee(s) will be responsible for preparing and maintaining a written record of the environmental review undertaken for each project.
According to the National Environmental Policy Act (40 CFR 1500-1508) and Title 24 Part 58, the City is required to ensure that environmental information is available before decisions are made and before actions are taken. In order to achieve this objective, the City must not commit or execute an agreement for rehabilitation until the environmental review process has been completed.
Due to the nature of activities to be funded under this Program it is assumed that these activities will be exempt and the City, as the responsible entity, is required to document in writing that the project is exempt and meets the conditions for exemption as spelled out in §58.5.
Categorically Excluded Activities Subject to 58.5. (3) Rehabilitation of buildings and improvements when the following conditions are met: (i) In the case of a building for residential use (with one (1) to four (4) units), the density is not increased beyond four (4) units, and the land use is not changed.
The list of categorically excluded activities is found at 24 CFR Part 58.35. While the activities listed in 58.35(a) are categorically excluded from NEPA requirements, the grantee must nevertheless demonstrate compliance with the laws, authorities and Executive Orders listed in §58.5.
The Environmental Review Record must contain a written determination of the finding that a given activity or program is categorically excluded subject to §58.5. The documentation must support its determinations related to compliance with the Federal laws and authorities cited in §58.5.
Files and Record Keeping:
City Staff or Consultant is to establish and maintain a permanent "Master File" for each grant application. Master Files are to be kept for three (3) years after project completion.
Financial Reporting:
The City’s Finance Department is responsible for maintaining financial records in compliance with federal, state, and City regulations.
Funding Availability:
The Program is implemented on a first come, first served basis, and is subject to funding availability.
Conflict of Interest:
All grant applicants, contractors, and City Staff or Consultant members are asked to declare any formal or informal relationships they have with one another by signing the Borrower Certification of No Conflict of Interest in Receiving HOME funds. These include direct or indirect business or familial relationships. Whenever a relationship is declared, the City Staff or Consultant must submit a memo to the Director explaining the nature of the relationship and asking for directive in the assignment of the case to appropriate City Staff or Consultant. Ordinarily the case is to be assigned to City Staff or Consultant that do not have preexisting relationships with the applicant. A preexisting relationship will not disqualify an applicant from participating in the Program, provided the applicant meets all eligibility criteria.
Fair Housing and Equal Opportunity:
Program activities must comply with the following Federal Laws, executive orders, and regulations pertaining to fair housing and equal opportunity.
Title VI of the Civil Rights Act of 1964, as amended (42 U.S.C. 2000d et seq), which states that no person may be excluded from participation in, denied the benefits of, or subjected to discrimination under any program or activity receiving Federal financial assistance on the basis of race, color, or national origin.
The Fair Housing Act (42 U.S.C. 3601-3620), which prohibits discrimination in the sale or rental of housing, the financing of housing, or the provision of brokerage services against any person on the basis of race, color, religion, sex, national origin, handicap, or familial status.
Equal Opportunity in Housing (Executive Order 11063, as amended by Executive Order 12259), which prohibits discrimination against individuals on the basis of race, color, religion, sex, or national origin in the sale, rental, leasing, or disposition of residential property or in the use or occupancy of housing assisted with Federal funds.
The Code of Federal Regulations Title 40 Part 31.36(e), “Procurement,” requires the Contractor (and Subcontractors) to take all necessary affirmative steps to assure that minority-owned and women-owned businesses are used when possible. The affirmative steps (or good faith efforts) include:
Placing qualified small and minority businesses and women’s business enterprises on solicitation lists; Assuring that small and minority businesses, and women’s business enterprises are solicited whenever they are potential sources; Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by minority business, and women’s business enterprises; Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority business, and women’s business enterprises; Using the services and assistance of the Small Business Administration, and the Minority Business Development Agency of the Department of Commerce; and Requiring the prime contractors, if subcontracts are to be let, to take these affirmative steps.
Age discrimination Act of 1975, as Amended (42 U.S.C. 6101), which prohibits age discrimination in programs receiving Federal financial assistance.
Section 504 of the Rehabilitation Act of 1973 prohibits the exclusion of an otherwise qualified individual, solely by reason of disability, from participation under any program receiving Federal funds. The City will take appropriate steps to ensure effective communication with disabled housing applicants, residents and members of the public.
Equal Employment Opportunity, Executive Order 11246, as amended, which prohibits discrimination against any employee or applicant for employment because of race, color, religion, sex, or national origin. This must be stipulated in all construction contracts.
All Program correspondence must have the Fair Housing logo at the lower right-hand side corner of the first page.
Labor Compliance:
Davis-Bacon applies to the rehabilitation of residential property only if the property contains eight (8) or more units. Residential property that contains seven (7) or fewer units is exempt. The Program is not subject to Prevailing Wages and Davis-Bacon.
Amending the Policies and Procedures Manual:
The City Staff or Consultant may recommend policy and procedural changes. All changes made must be in accordance with federal and state regulations. Program procedural and policy changes require the Director’s approval.
Exceptions to Program Policies and Procedures:
Any case to which a standard policy or procedure, as stated in this guide, does not apply or an applicant is treated differently from others of the same class would be an exception.
Exceptions to the Program’s Policies and Procedures are allowable on an individual case basis. City Staff or Consultant can present written recommendations to the Director. The report must contain a narrative, the recommended course of action, and relevant documentation to support the exception requested. The Director may approve the policy or procedural exception for the specific instance by signing at the bottom of the written recommendation. The approved exception must be kept in the case Master File.
Outreach:
The City will perform outreach activities in targeted areas to advertise the Program and encourage potential applicants to apply for assistance. Methods of outreach may include (but are not limited to) flyers and Program brochures that describe the Program and eligibility requirements. This information will be made available at City Hall and the City’s website. To provide consistent service to City residents, City Staff or Consultant will maintain an on-going Interest List. Prospective applicants may join the Interest List at any time and will be entered on the list in order of expressed interest. Applicants will be served on a first-come, first-served basis and based on the availability of funds. Program information will be published in languages commonly used in the City. All outreach efforts will be done in accordance with state and federal fair lending regulations to assure nondiscriminatory treatment, outreach, and access to the Program.
Section II – Rialto Revive: HOME Rehabilitation Grant Program Description
The Program provides funds in the form of a grant to eligible applicants to be used for a small level of rehabilitation, including handicap access, energy conservation, weatherization, and emergency repairs. These funds, when used according to the specifications listed in these guidelines, do not need to be repaid. The Program dollar amount is forgiven over a five (5) year period, one-fifth (1/5) or twenty percent (20%) per each calendar year as the homeowner continues to reside at the assisted property.
Amount
Maximum dollar amount: up to $30,000.
The Program will be provided as a one-time assistance per property.
Repayment
The Rialto Revive: HOME Rehabilitation Grant Program does not need to be repaid, however, to ensure that program funds are not used to increase equity in a property for resale purposes, the grant recipient must retain the property as their principal residence for a period of five (5) years. For each year the grant recipient remains in the home after the project is completed, a percentage of the grant will be forgiven. The project completion date will be used as the anniversary date. A lien for the entire grant amount will be recorded against the property at the start of the project and a release of lien will be issued after the fifth anniversary or an event of acceleration occurs (sale of the property, refinance, etc.).
Rialto Revive: HOME Rehabilitation Grant Program – Repayment Table Up to the first year
Full amount of grant would need to be repaid
At Year One Anniversary
20% forgiven (payback would be 80% of grant total)
At Year Two Anniversary
40% forgiven (payback would be 60% of grant total)
At Year Three Anniversary
60% forgiven (payback would be 40% of grant total)
At Year Four Anniversary
80% forgiven (payback would be 20% of grant total)
At Year Five Anniversary
100% forgiven
Section III – Eligibility Requirements
Income eligible owner-occupied single-family properties within Rialto City limits may be assisted with HOME funds in the form of a grant. Grants of up to a maximum dollar amount of $30,000 are available to eligible applicants. Financial assistance will only be provided if the household meets the eligibility standards outlined in these guidelines.
Program Requirements
Rialto Revive: HOME Rehabilitation Grant Program
Household Requirements
Owner-occupant households who have resided in their home for at least one (1) year, and 80% or less of the Area Median Income adjusted for household size as defined by HUD.
Eligible Properties
Property must be within City limits;
Traditional single-family housing with one (1) to four (4) dwelling units; Condominium Unit (interior only);
Townhome (interior only);
The property must serve as the household’s principal residence; Property must have a fee simple title (clear title);
The property shall be free of negative encumbrances on title; Property taxes must be current on the property;
The property must have a rehabilitation cost that does not exceed seventy-five percent (75%) of the after-rehabilitation value of the property as determined by the City; HOME-assisted properties must meet all applicable State and local codes; Eligible Repairs
Repairs that improve the safety, security and health of the occupants; Repairs that rectify code or incipient code violations; Repairs and alterations to make the house more supportive of a disabled occupant; Repairs and alterations to make a house more energy efficient; General property rehabilitation, and
Construction of additional bedrooms and bathrooms to address overcrowding Funding Limits
Applicants may request assistance of up to a maximum grant amount of $30,000.
Terms
The Grant will not require repayment; however, an Owner Occupancy “Affordability Period” provision will be required for assisted properties through a legal Deed of Trust, Affordability Covenant or similar recordable mechanism. Applicants must reside in the house for the years identified below based on the amount received after the work is completed.
Affordability Periods will be placed according to Grant amount awarded:
Up to $30,000
5 years
The Program grant amount will be forgiven over a five-year period, with one-fifth (1/5) or twenty percent (20%) of the total amount forgiven each calendar year.
Year 1
20% of total amount forgiven
Year 2
40% of total amount forgiven
Year 3
60% of total amount forgiven
Year 4
80% of total amount forgiven
Year 5
100% of total amount forgiven
Applicant Eligibility Criteria
Applicants must be over the age of 18 and have resided in their home for at least one (1) year. Applicants must be a U.S Citizen or Resident Alien. Applications will be reviewed and processed on a first-come, first-served basis.
Household Income
All homeowners must certify that they meet the household income eligibility requirements and have household income documented pursuant to 24 CFR 92.203. The income limits in place at the time of grant approval will apply when determining applicant income eligibility.
Household income cannot exceed 80% (Low Income) of the area median income (AMI), adjusted for household size. 2024 ELIGIBILITY INCOME LIMITS FOR HOME FUNDED PROJECTS Effective April 1, 2024 (adjusted annually by HUD)
No. of Persons in Household
30% Limit
Very Low Income (50%)
Low Income (80%)
1 $ 21,550
$ 35,900
$ 57,400
2 $ 24,600
$ 41,000
$ 65,600
3 $ 27,700
$ 46,100
$ 73,800
4 $ 31,200
$ 51,250
$ 82,000
5 $ 36,580
$ 55,350
$ 88,600
6 $ 41,960
$ 59,450
$ 95,150
7 $ 47,340
$ 63,550
$ 101,650
8 $ 52,720
$ 67,650
$ 108,250
Debt Ratios and Credit
Housing and/or debt ratios are not considered, nor is a credit report required, as the funding provided creates no additional monthly financial obligation. However, if the homeowner has a mortgage, City Staff or Consultant must verify that payments are current and that no late payments have been received in the past twelve (12) months. Property taxes must be current and property insurance must be provided.
City Employees
No member of the governing body of the City and any other official, employee, or agent of the City Government who exercises policy, decision-making functions, or responsibilities in connection with planning and implementation of the Program shall be directly or indirectly eligible for Program assistance. The restriction shall continue for one (1) year after an individual’s relation with the City ends.
Property Eligibility Criteria
The property must be either traditional single-family housing with up to four (4) units, a condominium or a townhome. Common areas and areas that are the responsibility of any Homeowner’s Association (HOA) are not eligible. For single family housing with two (2) to four (4) units, and funds are used to assist the units other than the unit that is owner-occupied, the HOME rental requirements apply including provisions regarding tenant occupancy, tenant income levels, initial rent levels, and long-term affordability. If HOME funds are used to rehabilitate only the owner-occupied unit in a two-to-four-unit residence, the rental housing rules do not apply.
Property must be located within City of Rialto jurisdictional boundaries; Property must have a fee simple title (clear title);
Property must serve as the household’s primary residence; The property shall be free of negative encumbrances on title; Property taxes must be current on the property;
The property must have a rehabilitation cost that does not exceed seventy-five percent (75%) of the after-rehabilitation value of the property as determined by the City; The after-rehabilitation value of the property cannot exceed the current HUD FHA 203(b) Limits, or those established by a local market survey conducted by the City and approved by HUD, and HOME-assisted properties must meet all applicable State and local codes or a national model building code if no local codes are present.
HOME After Rehabilitation Value Limits
The U.S. Department of Housing and Urban Development (HUD) requires documentation of the after-rehabilitation value (ARV) to show such housing is within Section 203(b) program limits. The ARV of the property assisted through the Program cannot exceed the HOME Program Value Limit (Value Limit) of 95% of the median sale price for the City, as updated by HUD. The Value Limits are those established according to current HUD FHA 203(b) Limits, or those established by a local market survey conducted by the City and approved by HUD.
Property value must be determined prior to the provision HOME assistance. The value will be established by appraisals prepared by a licensed fee appraiser. This requires the City to provide the appraiser with the written work write-up that includes the proposed rehabilitation for the subject property. To ensure compliance of the ARV requirements, the City Staff or Consultant must determine what the value of the property will be once the rehabilitation is completed. The value of the work must be added to the property value to arrive at the ARV.
Section IV – Uses of Program Funds
Eligible Uses of Funds
Program funds must be used for the purpose of repairs and rehabilitation. Eligible costs of rehabilitation include:
Written
HARD COSTS
Meeting the rehabilitation standards;
Meeting applicable codes, standards and ordinances;
Essential improvements;
Energy-related improvements;
Lead-based paint hazard reduction*;
Accessibility for disabled persons;
Repair or replacement of major housing systems;
Incipient repairs and general property; improvements of a non-luxury nature, and Site improvements and utility connections.
*Note: Lead hazard reduction costs are not counted as hard costs for the purposes of determining the level of assistance under 24 CFR Part 35 (the Lead Safe Housing Rule).
SOFT COSTS
Financing fees;
Credit reports;
Title binders and insurance;
Recordation fees, transaction taxes;
Legal and accounting fees;
Appraisals;
Pest inspections;
Work write-ups;
Architectural/engineering fees, health including specifications, and initial and job progress inspections; Building permits and plan checks required by the City;
Project costs incurred by the PJ that are directly related to a specific project, and Refinancing of secured existing debt if the housing is owner-occupied and refinancing allows the overall costs of borrower to be reduced and the housing is made more affordable.
Ineligible Uses of Funds
The following costs are not eligible uses of Program proceeds:
Materials, fixtures, equipment, or landscaping of a type and quality that exceeds adequate service, or that is not customarily used for properties in the same general area. No luxury upgrades are allowed; Appliances;
Construction, rehabilitation, or modification to detached garages or structures under HOME program.
Recreational items such as barbecues, bathhouses, greenhouses, swimming pools, saunas, television antennae; and tennis courts; Acquisition of land;
Room or bathroom additions, except for addressing overcrowding conditions; Property taxes;
Reimbursement of costs incurred prior to the approval of assistance; Assistance related costs, and
Repairs related to outstanding insurance claims or claims already paid.
Hierarchy of Grant Funds
Program funds must be used in the following order of priority:
Life-threatening or safety repairs.
Health and safety hazards.
Livability improvements.
Non-critical improvements.
Other eligible general property rehabilitation work.
Section V – Eligible Repairs and Rehabilitation
Program funds are to be used for the rehabilitation of homes. Rehabilitation means repairing or improving a deteriorated or outdated house. Deteriorated materials and components must be replaced with like materials. No luxury upgrades are allowed. Eligible repairs and improvements include the following:
Repairs that rectify the most urgent health and safety hazards, such as:
Unsafe structural parts of a house, which are likely to collapse in the immediate future if not supported. (e.g. porch, roof, stairways); Electrical conditions that are likely to result in a fire or threaten human life in the immediate future. (e.g. overloaded circuits, and hazardous fixtures, switches, outlets, or wiring.); Plumbing and septic systems repairs, which involve exposed sewage, leaking supply lines, and inoperable water heaters; Mechanical system repairs that create conditions likely to result in a fire or leakage of gas or fumes, and Other conditions determined by staff that could result in a life-threatening situation in the immediate future.
Repairs that improve deteriorated or inadequate features of the structure that pose no immediate threat to life but will damage the dwelling if ignored, such as:
Defects in electrical, plumbing, and mechanical fixtures; Unsafe entrances and exits;
Lack of smoke detector or similar devices;
Deteriorating or inadequate structural conditions (e.g. crumbling foundations, dry rot, and termite damage); Roofing;
Heat exchanger in the furnace may become inoperative or hazardous; Flooring;
Driveway;
Fumigation;
Modifications that aid the mobility of the elderly and physically disabled, and Other California Building Code deficiencies
Improvements intended to improve the quality of life for dwellings, such as:
Overcrowding;
Addition or renovation of bedrooms or bathrooms. (See Item 6 below.); Renovation of kitchen;
Addition or renovation of laundry facility;
Lack of energy or water-saving devices (replacement of existing items only), and Heating.
Improvements that do not address life-threatening or quality of life issues but are eligible, provided that items (a) and (b) listed below are in conjunction with work performed:
Sandblasting/stucco, and
Painting.
Rehabilitation work not related to rectifying life-threatening and urgent safety issues, fixing health and safety hazards, improving livability, and improving non-critical conditions is considered general property rehabilitation.
General property improvements for reconstruction would allow for the construction of a garage and/or a driveway.
The construction of additional bedrooms and bathrooms is allowed if the need can be demonstrated per the guidelines listed below. The accepted standard definition of overcrowding is more than one and a half (1.5) people per room or more than two (2) people per bedroom. The program will not fund additions to a home for a den or family room.
GUIDELINES FOR ROOM AND BATHROOM ADDITIONS
Maximum No. of Persons in the Household
Number of Bedrooms
Number of Bathrooms
1 0
1 1-2
1 1
3-4
2 2
5-6
3 2
7-8
4 2
9-10
5 3
11-12
6 3
Section VI – Rehabilitation Standards
The City of Rialto has adopted written rehabilitation standards for rehabilitation of owner-occupied units. A rehabilitation standard defines the quality of materials and workmanship that must be used when a particular repair is made. Rehabilitation standards (sometimes called construction standards) speak to the quality, durability, and aesthetics of the end product. All work to be completed pursuant to current California Building and Local Codes.
City of Rialto Rehabilitation Standards
SECTION I: SITE IMPROVEMENTS
NOTE: All work requires review by the City Building Division regarding need for plans/permits.
SITE IMPROVEMENTS – OUTBUILDINGS
REHABILITATION STANDARD: 75% or more salvageable.
Minimum Life: 5 Years.
Unsafe, illegal or unapproved structures, including outbuildings, additions and patio covers will be removed if it is not financially feasible (up to $5,000) to complete rehabilitation required to make them structurally sound, leak free and building and zoning code legal.
REPLACEMENT STANDARD: No outbuilding shall be provided.
SITE IMPROVEMENTS – PAVING AND WALKS
NOTE: Any work may require a permit from the City Community Development Department – Building Division or the City Public Works Department - Engineering Division.
REHABILITATION STANDARD:
Minimum Life: 15 Years.
Badly deteriorated, essential paving, such as front sidewalks, will be replaced to match. Deteriorated paving may be removed or replaced.
REPLACEMENT STANDARD:
Minimum Life: 20 Years.
Essential walks and drives shall be replaced with 4” thick, 4% air entrained, 3000 PSI (pounds per square inch) concrete with metal reinforcement.
SITE IMPROVEMENTS – LANDSCAPING
REHABILITATION STANDARD:
Site shall be graded to direct water to run away from foundation. Trees that are too close to the structure shall be removed.
REPLACEMENT STANDARD:
Only for-sale homes’ front yards may be landscaped with a $500 maximum allowance.
SITE IMPROVEMENTS – FENCING/GATES
REHABILITATION STANDARD:
Minimum Life: 5 Years.
Fencing shall be rehabilitated to meet the local code.
REPLACEMENT STANDARD:
When funding is sufficient for nonessential improvement, additional wood or wrought iron fencing may be installed to create defensible space in conformance with neighborhood/homeownership association requirements.
SITE IMPROVEMENTS – SWIMMING POOLS/HOT TUBS
REHABILITATION STANDARD:
Minimum Life: 3 Years.
Beyond scope of federal financing. Pools may be filled.
REPLACEMENT STANDARD: N/A
SECTION II: EXTERIOR SURFACES
NOTE: All work requires review by the City Building Division regarding need for plans/permits.
EXTERIOR SURFACES – EXTERIOR CLADDING
REHABILITATION STANDARD:
Minimum Life: 10 Years.
Siding and trim will be intact and weatherproof. All exterior wood components will have a minimum of one continuous coat of paint, and no exterior painted surface will have any deteriorated paint.
REPLACEMENT STANDARD:
Minimum Life: 25 Years.
Historically sensitive vinyl siding with 45-year material warranty.
EXTERIOR SURFACES – EXTERIOR PORCHES/BALCONIES
REHABILITATION STANDARD:
Minimum Life: 10 Years.
Unsafe or unsightly porches and balconies will be rehabilitated to conform closely with porches in the neighborhood. Porch rehabilitation will be structurally sound, with smooth and even decking surfaces.
REPLACEMENT STANDARD:
Minimum Life: 20 Years.
Deteriorated porches and balconies shall be replaced with preservative treated structural lumber and tongue and groove pine or synthetic deck material. Replace with concrete if economically possible.
EXTERIOR SURFACES – EXTERIOR RAILINGS
REHABILITATION STANDARD: None.
REPLACEMENT STANDARD:
Minimum Life: 20 Years.
Railings that do not meet the current code shall be removed and replaced with wrought iron or synthetic wood.
EXTERIOR SURFACES – EXTERIOR STEPS AND PATIOS
REHABILITATION STANDARD:
Minimum Life: 10 Years.
Steps, stairs and decks shall, be structurally upgraded to current California Building Code; free from all significant deterioration.
REPLACEMENT STANDARD:
Minimum Life: 20 Years.
Any replacement patio, deck, or stoop shall be of a minimum functional size, design, and construction.
SECTION III: FOUNDATIONS & STRUCTURE
NOTE: All work requires review by the City Building Division regarding need for plans/permits.
FOUNDATIONS & STRUCTURE – FIREWALLS
REHABILITATION STANDARD:
Minimum Life: 15 Years.
Party walls and garage ceilings shall be maintained without cracks and plaster deterioration and upgraded with 5/8" type X gypsum, glued and screwed to structure.
REPLACEMENT STANDARD:
Minimum Life: 20 Years.
All party walls shall conform to current California Building Code’s new construction requirements for fire separation at both walls and roofs.
FOUNDATIONS AND STRUCTURE – FOUNDATIONS
REHABILITATION STANDARD:
Minimum Life: 20 Years.
Foundations shall be rehabilitated to be sound and water resistant if financially feasible.
REPLACEMENT STANDARD:
Foundation replacements above 25% are beyond the scope of the program and usually indicate an infeasible project.
FOUNDATIONS & STRUCTURE – STRUCTURAL WALLS
REHABILITATION STANDARD:
Minimum Life: 20 Years.
All structural members shall be free from deterioration, rot and termite damage and be sized in conformance to building code. Any member not in conformance with code shall be re-supported as determined by a structural engineer.
REPLACEMENT STANDARD:
Minimum Life: 40 Years.
Walls shall be 2" x 4", 16" on center with at least R-19 insulation and solid sheathing to match existing.
SECTION IV: WINDOWS AND DOORS
WINDOWS AND DOORS – INTERIOR DOORS PLACEMENT
REHABILITATION STANDARD:
Minimum Life: 10 Years.
All bedrooms, baths and closets shall have operating doors. Privacy locksets on bath and master bedroom. All other doors shall have passage locks. Recycle doors when possible.
REPLACEMENT STANDARD:
Minimum Life: 15 Years.
Doors may be solid core or composite in paint grade jambs.
WINDOWS AND DOORS – EXTERIOR DOORS
REHABILITATION STANDARD:
Minimum Life: 10 Years.
Exterior doors shall be 1 ¾ inch thick, solid core, insulated to minimum R-6, weather stripped, operate smoothly, including a peep site, a dead bolt, and an entrance lock set. Rod iron installations require review by the Building Division.
REPLACEMENT STANDARD:
Minimum Life: 20 Years.
All replacement doors at the front of the property will be neighborhood sensitive, Energy Star, steel or fiberglass solid core doors with peep sight and deadbolt. Garage/house doors shall be 20-minute fire rated with self-closing hinges. Energy Star, solid core doors with peep sight, dead bolt, and entrance locksets shall be installed at entrances not visible from the front street. Garage doors shall be R-5, embossed metal with a lockable assembly.
WINDOWS AND DOORS – WINDOW PLACEMENT
REHABILITATION/REPLACEMENT STANDARD: Bedrooms shall have all operable windows with a screen and meet egress requirements (one (1) per room) per current California Building Code.
WINDOWS AND DOORS – WINDOWS & SLIDING GLASS DOORS
REHABILITATION STANDARD:
Minimum Life: 10 Years.
All windows and sliding glass doors shall be weather tight, include a locking device, and where required for egress, be fully functioning/operational.
REPLACEMENT STANDARD: Energy Star
Minimum Life: 20 Years.
Double glazed, PVC or fiberglass, a minimum R-value of 2.8 (U=.33), SHGC of 0.30 and DP of 45.
SECTION V: ROOFING
ROOFING – FLAT AND LOW SLOPE ROOFING
REHABILITATION STANDARD:
Minimum Life: 10 Years.
Rehabilitate roofing when cost is less than 30% of total replacement cost.
Built-up roofing, flashing and accessories shall be rehabilitated per current California Building Code wherever a 5-year leak free warranty is available from a certified roofing company.
REPLACEMENT STANDARD:
Minimum Life: 15 Years.
The most cost-effective Energy Star certified roof of: 3-ply hot built-up, TPO (thermoplastic olefin) or EPDM (ethylene propylene diene terpolymer) per current California Building Code.
ROOFING – PITCHED ROOFS
REHABILITATION STANDARD:
Minimum Life: 10 years with warranty.
Rehabilitate when cost is less than or equal to 5% of total replacement cost.
Missing and leaking shingles and flashing shall be rehabilitated on otherwise functional roofs per current California Building Code. Concrete, metal and tile roofs shall be rehabilitated when at all possible. Antennae and communication disks shall be permanently removed.
REPLACEMENT STANDARD:
Moderate: Minimum Life: 30 Years.
Fiberglass, asphalt, 3-tab, class A shingle weighing at least 235lbs and up to 270 lbs., architectural grade, 30-year warranty with ridge ventilation system per current California Building Code.
SECTION VI: INSULATION AND VENTILATION
INSULATION AND VENTILATION – ATTIC VENTILATION
NOTE: All new work requires permits from the Building Division.
REHABILITATION STANDARD:
Minimum Life: 5-Year.
Any pre-installed ventilation shall be maintained or if powered and not functioning, replaced.
REPLACEMENT STANDARD:
Minimum Life: 20 Years.
Attics will be ventilated with a minimum of one (1) square foot of free vent for each 150 square feet of roof area or be redesigned for integration with new insulation system. Solar powered roof vents may be used when possible.
INSULATION AND VENTILATION – BATH VENTILATION
REHABILITATION STANDARD: None.
REPLACEMENT STANDARD:
Minimum Life: 10 Years.
Energy Star, exterior ducted, 70 CFM (cubic feet per minute), maximum 20 sones and separate switch or humidistat in all full and three-quarter baths.
INSULATION AND VENTILATION – INFILTRATION
REHABILITATION/REPLACEMENT STANDARD:
Minimum Life: 5 Years.
All exterior doors and attic hatches shall be weather stripped. All visible cracks shall be caulked.
INSULATION AND VENTILATION – INSULATION
REHABILITATION STANDARD: Not Applicable.
REPLACEMENT STANDARD:
Minimum Life: 15 Years.
Attic insulation goal is R-30, crawls spaces R-19. New walls will be insulated to capacity with blown cellulose, fiberglass or closed cell foam to cavity capacity. Attic access panel must be insulated to R-30 with rigid foam.
INSULATION AND VENTILATION – KITCHEN VENTILATION
REHABILITATION STANDARD: N/A.
REPLACEMENT STANDARD:
Minimum Life: 5 Years.
Energy Star, exterior ducted range hoods or exhaust fans with less than 10 sones, at least 120 CFM (cubic feet per minute) and capped with a functional back draft.
SECTION VII: INTERIOR STANDARDS
INTERIOR STANDARDS – INTERIOR RAILINGS
REHABILITATION STANDARD:
Minimum Life: 10 Years.
Handrails will be present on one side of all interior steps or stairways with more than two risers and around platforms over 30" above floor level with adequate structural attachment, in compliance with the current California Building Code.
REPLACEMENT STANDARD:
Minimum Life: 15 Years.
Hand and guardrails shall be replaced with universal design standard material and construction in compliance with the current California Building Code.
INTERIOR STANDARDS – INTERIOR WALLS AND CEILINGS
REHABILITATION STANDARD:
Minimum Life: 5 Years.
Walls shall be stripped of wallpaper, holes, cracks, and deteriorated surfaces. All visual surfaces shall be patched and sanded as to create a smooth surface and recoated using premium, low VOC (volatile organic compound), vinyl acrylic paint.
REPLACEMENT STANDARD:
Minimum Life: 10 Years.
Walls shall be plumb, ceiling level with a smooth finish on at least 1/2" gypsum with water resistant board in wet areas. 5/8” Type X over 16” on center studs installed per the American Gypsum Association. Kitchen tile backsplashes and wainscot in ceramic tile baths.
INTERIOR STANDARDS – HAZMAT TESTING AND TREATMENT
REHABILITATION STANDARD:
SAFE PRACTICES
Low: Minimum Life: 3 Months.
Asbestos and lead paint hazards, when previously identified, shall be addressed in conformance with applicable local, state, and federal laws. Rehabilitated properties shall be cleaned to pass a Lead Dust clearance test to the levels prescribed by HUD regulations.
Moderate: Minimum Life: 1 Year.
All properties shall be visually inspected for asbestos and lead suspect materials. No friable asbestos and all interior and exterior lead suspect surfaces shall be repainted using premium acrylic latex. Properties shall pass HUD lead dust clearance standards prior to occupancy.
High: Minimum Life: 1 Year.
All properties shall undergo visual "Risk Evaluations" by rehab supervisors and be treated with the most affordable interior, exterior and site clean-up to clearance standards.
REPLACEMENT STANDARD: IN PLACE MANAGEMENT & ABATEMENT
High: Minimum Life: 20 Years.
After an inspection by an EPA (Environmental Protection Agency) Certified Inspector, all hazardous material shall be removed from all moving parts, floors and mountable surfaces. Encapsulants and enclosures may be used.
INTERIOR STANDARDS – CLOSETS
REHABILITATION STANDARD:
Minimum Life: 10 Years.
Existing closets will be maintained.
REPLACEMENT STANDARD:
Minimum Life: 10 Years.
All bedrooms shall have a closet with a door, clothes rod, and shelf. Baths must include linen storage and coat hooks must be near the front door.
INTERIOR STANDARDS – FLOORING
REHABILITATION STANDARD:
Minimum Life: 10 Years.
Ceramic tile flooring may be rehabilitated and wood floors sanded and refinished. Salvageable carpet may be cleaned. Minimum life for carpet is 5 years.
REPLACEMENT STANDARD:
Minimum Life: 20 Years.
Stone, tile or vinyl flooring may be installed over reinforced cement underlayment in baths. Wood or laminate flooring may be installed in living and dining rooms and halls. Kitchen and utility to be ceramic tile. FHA approved carpet over 6lb rebond underlayment is allowed in bedrooms when economically feasible.
INTERIOR STANDARDS – APPLIANCES
Assessment of existing appliances shall be made to determine if replacement is necessary.
REPLACEMENT STANDARD: Energy Star and Water Sense. The following appliances are eligible to be installed only when funding allows:
• Dishwasher: Energy Star rated;
• Washing Machine: Energy Star rated (required);
• Dryer: 7 CF (cubic feet) with sensor dry system;
• Refrigerator: Energy Star rated (required);
• Range – Gas or electric, four (4) burner;
• Garbage disposal – 1/2 hp (horsepower), with minimum 3 year warranty; • Microwave/Hood combination (if replacing current equipment), and • Built-in Oven (to match) Energy Star rated.
INTERIOR STANDARDS – MINIMUM KITCHEN DESIGN
REHABILITATION/REPLACEMENT STANDARD:
Cabinet Storage: 2 bedroom – 8’ minimum; 3 bedroom – 10’ minimum; 4 bedroom – 12’ minimum.
SECTION VIII: ELECTRIC
NOTE: All electrical work requires permits from the City Building Division.
ELECTRIC – SPECIALIZED CIRCUITS
REHABILITATION STANDARD: Rehabilitate existing devices to operate.
REPLACEMENT STANDARD:
Minimum Life: 15 Years.
Kitchen receptacles within six feet (6’) of a sink, all bath receptacles and at least one (1) exterior receptacle shall be protected by a ground fault circuit interceptor (GFCI). Arc fault receptacles shall be installed in all bedrooms, family, dinning, and living rooms, closets, hall walls, and recreation rooms per current National Electric Code.
ELECTRIC – KITCHEN ELECTRIC DISTRIBUTION
REHABILITATION STANDARD:
Minimum Life: 15 Years.
Electric service may be supplied to trash compactors, microwave ovens, double ovens, range grills, and any appliance proposed for installation.
REPLACEMENT STANDARD:
Minimum Life: 15 Years.
Permanently installed or proposed stoves, refrigerators, freezers, dishwashers and disposals, washer and dryers shall have separate circuits sized to National Electric Code. Two (2) separate 20-amp counter circuits are required with each kitchen area.
ELECTRIC – FIXTURES
REHABILITATION STANDARD: None
REPLACEMENT STANDARD:
Minimum Life: 20 Years.
All halls, rooms necessary to cross to other rooms and stairways must be well lighted and controlled by a 3-way switch using concealed wiring. Attics must have utility fixtures. All fixtures shall be Energy Star. Replace all incandescent bulbs with fluorescent or LED bulbs. Exterior door lighting shall provide 100 lumens at ground level (motion detectors allowed). Garage doors shall be equipped with electric openers with laser safety devices. Bedrooms and living areas may receive Energy Star ceiling fans.
ELECTRIC – ALARMS
REHABILITATION STANDARD:
Minimum Life: 5 Year.
Existing fire and smoke, CO (carbon monoxide) shall be rehabilitated to operating condition. Security system may be rehabilitated as needed. Exterior doors shall be alarmed when pools are present.
REPLACEMENT STANDARD:
Minimum Life: 15 Years.
Directly wired, battery back-up smoke detectors are required on each dwelling floor. Interconnected smoke detectors are required for special needs and wheelchair users’ homes. CO (carbon monoxide) detectors are required with all fuel burning furnaces. Security systems may be installed at first floor doors and windows when economically feasible.
ELECTRIC – INTERIOR DISTRIBUTION
REHABILITATION STANDARD: None.
REPLACEMENT STANDARD:
Minimum Life: 20 Years.
All rooms shall be rewired to current National Electric Code using affordable fixture allowances and Energy Star fixtures. Minimum of one 20-amp circuit per room.
ELECTRIC – SERVICE AND PANEL
REHABILITATION STANDARD:
Minimum Life: 15 Years.
Distribution panels shall have a main disconnect, at least 10 circuit breaker protected circuits, a 100-amp minimum capacity and be adequate to safely supply existing and proposed devices. Electrical panel shall be replaced if not properly grounded, to local codes. All panel upgrades require approval by Southern California Edison.
REPLACEMENT STANDARD:
Minimum Life: 20 Years.
Single Family: 200-amp service with a 24-circuit panel is allowed for homes of up to 1,800 SF. Homes larger than 1,800 SF or all electric require 200-amp service with a main disconnect panel containing at least 30 circuit breaker positions.
Two-Four Family: 100-150-amp service to each unit with a main disconnect panel containing at least 20-24 circuit breaker positions. All panel upgrades require approval by Southern California Edison.
SECTION IX: PLUMBING SYSTEM
NOTE: All plumbing work requires permits from the City Building Division.
PLUMBING SYSTEM – DRAIN, WASTE, VENT LINES
REPLACEMENT STANDARD:
Minimum Life: 20 Years.
ABS replacement lines shall be installed in accordance with the current California Building Code. Most recently approved version of the State of California plumbing code.
PLUMBING SYSTEM – PLUMBING FIXTURES
REHABILITATION STANDARD:
Minimum Life: 5 Years.
All fixtures and faucets when replaced will be retrofitted with low flow aerators: kitchen faucets with a maximum flow rate of 2.0 gal/min; bath faucets with a maximum flow rate of 1.5 gal/min. Tub and shower valves shall have thermostatic or pressure balance valves.
REPLACEMENT STANDARD: California Water Sense
Minimum Life: 20 Years.
Single lever, low flow, 2.0 gal/min kitchen and 1.6 gal/min bath, metal faucets and 2.5 gal/min maximum shower diverters with lifetime drip-free warranty. White ceramic, 1.1 GPF ultra low flow toilets, double bowl stainless steel or porcelain kitchen sinks, fiberglass tubs and surrounds and steel or porcelain enameled 5' tubs. Tub and shower valves shall have thermostatic or pressure balance valves.
PLUMBING SYSTEM – PLUMBING MINIMUM EQUIPMENT
REHABILITATION STANDARD: None.
REPLACEMENT STANDARD:
Minimum Life: 10 Years.
Every dwelling shall contain a double or single bowl kitchen sink, and a 3-piece bath.
PLUMBING SYSTEM – FIRE SPRINKLERS
REHABILITATION STANDARD: Rehabilitate all.
REPLACEMENT STANDARD: Required in homes for wheelchair bound populations when economically feasible.
PLUMBING SYSTEM – WATER HEATERS
REHABILITATION STANDARD:
Minimum Life: 5 Years.
The minimum capacity for units with two (2) bedrooms or less shall be 30-gallons, larger units shall have a minimum capacity of 40-gallons. Water heaters shall have pressure relief valves with drip legs that extend to within one foot of the exterior ground, in copper pipe. All water heaters shall have seismic strapping.
REPLACEMENT STANDARD:
Minimum Life: 12 Years.
Energy Star, high efficiency, pilotless, Energy Star, gas fired or dual element electric (0.97) water heaters with at least R-7 insulation and a 12-year replacement warranty. A 40-gallons electric for 1 and 2-bedroom units and 40-gallons gas or 52-gallons electric for 3- and 4-bedroom units. Install heat pump water heaters when feasible. All water heaters shall have seismic strapping.
PLUMBING SYSTEM – WATER SUPPLY
NOTE: No pipe, plumbing, fixture, fitting, or faucet intended to convey drinking or cooking water shall contain no more than .25 percent lead (AB 1953).
REHABILITATION STANDARD: 10 Years.
Minimum Life:
All homes shall be tested to identify and eliminate all leaks. All fixtures must be supplied with 2-gallons per minute water flow and shut off valves must operate. Lead and galvanized pipe shall be replaced with copper, PVC (poly vinyl chloride) or PEX (cross-linked polyethylene), if local code allowed. All accessible hot water lines shall be insulated; maximum static pressure is 60 psi.
REPLACEMENT STANDARD:
Minimum Life: 20 Years.
All fixtures shall have brass shut off valves. Exterior hose bibs with air gap are required.
SECTION X: HVAC
NOTE: All work requires permits from the City Building Division.
HVAC – CHIMNEY/FIREPLACE REHABILITATION
REHABILITATION STANDARD:
Minimum Life: 20 Years.
Unsound chimneys shall be rehabilitated or removed. When chimneys must be used for combustion ventilation, they shall be replaced.
REPLACEMENT STANDARD:
Minimum Life: 20 Years.
Replacement furnace flues when required shall be metal double or triple walled as recommended by the equipment manufacturer.
If the service life of the chimney is comparable to service life of heating plant, then no replacement is necessary. If the chimney needs replacing or a new liner, the chimney will be eliminated and replaced with a high efficiency, power vented unit.
HVAC – DISTRIBUTION/VENTILATION SYSTEM
REHABILITATION STANDARD:
Minimum Life: 5 Year.
Central air conditioning shall be inspected, serviced, and refurbished per diagnostic testing of unit and distribution system – per BPI (Building Performance Institute technical standards for air conditioning and heat pump specialist as described in Chapter 6 of the Saturn Mechanical Systems Field Guide, 2006. Must meet current Title-24 Standards.
REPLACEMENT STANDARD:
Minimum Life: 20 Years.
All ductwork shall be insulated to R-4, seams sealed with Mastic and run in conditioned space within the building envelope. Air leakage and ventilation may be brought into conformance to Chapter 4 of HPSWC. Must meet Title-24 Standards.
HVAC – CENTRAL EQUIPMENT
REHABILITATION STANDARD:
Minimum Life: 5 Years.
Heating plants that are less than 5 years old and rated 65 AFUE efficiency or better shall be tested and tuned-upper BPI. Energy Star setback thermostats are required.
REPLACEMENT STANDARD:
Minimum Life: 20 years.
Condensing gas furnaces rated over 86 AFUE and heat pumps over 13.5 SEER with 10-year warranty on parts and 5 years labor. Air-to-air heat exchangers are eligible for this program. HVAC system shall be sized to maintain 68ºF measured 36" off the floor when the outside temperature is 84ºF (the average yearly maximum), in all habitable and essential rooms. Interior design temperature used for heating and cooling load calculations per Title-24.
SECTION XI: SPECIAL CONSTRUCTION
SPECIAL CONSTRUCTION – ACCESSIBILITY FOR SPECIAL NEEDS CLIENTS One of the following levels of accessibility shall be met dependent upon the clients’ physical needs and financial resources:
Accessibility:
1. No-step entry;
2. Adequate doorways. and
3. Usable bathroom.
Usable Home: If requested by a physically disabled tenant, home shall meet this level of accessibility when funding is available:
1. Accessible route into and through the dwelling unit;
2. Accessible switches, outlets and controls;
3. Reinforced walls for grab bar installation;
4. Usable kitchens, and
5. Ground floor bedroom.
Full Accessibility:
1. Wheelchair turning space in kitchen, bath and hall areas;
2. Doors – maximize space and lever hardware throughout;
3. Kitchen – accessible to wheelchair bound persons;
4. Bathroom fixtures per universal design standard;
5. Accessible controls in all areas, and
6. Communication devices in bath and at front and rear door.
SPECIAL CONSTRUCTION – LEAD SAFE REGULATIONS
REHABILITATION STANDARD / REPLACEMENT STANDARD
In all federally funded projects, the City shall follow the requirements listed on the attached “Summary of Lead-Based Paint Requirements.
International Energy Conservation Code
All new construction work must also conform to the International Energy Conservation Code (IECC) and applicable state or local energy conservation codes.
Additionally, the City requires that all new building construction complies with the State of California Energy Code.
Section VII – Application and Funding Process
Application Phase
Interest List
In an effort to provide consistent service to City residents, City Staff or Consultant will maintain an on-going Interest List.
Prospective Applicants may join the Interest List at any time by completing an interest form.
Applicants may request this form by phone, email, or in person.
The Applicant will be added to the Interest List once the City receives a completed form.
The Interest List will contain the name, address, telephone number, date of first contact, and desired rehabilitation work.
The Applicant may disclose conditions that pose an immediate threat to health and safety on the interest form. Staff shall make reasonable efforts to confirm the emergent situation, and City Staff or Consultant will prioritize the application.
As funds become available, Program applicant packets will be sent to prospective applicants, and each applicant will be given fifteen (15) calendar days to respond with a completed application. If an application is not received within fifteen (15) calendar days, City Staff or Consultant will make reasonable efforts to contact the applicant. If such efforts fail, the applicant will be removed from the Interest List after thirty (30) calendar days from the issuance date of the original Program application.
Application Review
The City Staff or Consultant will review all application documents and based on the documents shall make a determination of eligibility consistent with the Guidelines.
If additional information or documentation is required, the City Staff or Consultant shall request additional information from the Applicant.
The City will maintain confidentiality with respect to all financial information received from the Applicant to the maximum extent permitted by law.
Once the application package is complete, and provided that the Applicant, property and the proposed improvements meet all eligibility requirements outlined in the Guidelines, City Staff or Consultant will prepare a summary analysis of the request and make a recommendation to the Director of the Community Development Department.
These recommendations will be reviewed by the Director of Community Development Department based on the following criteria:
Priority will be determined:
according to the Program’s waiting list;
“first come, first served” basis;
immediate need;
project readiness basis;
The Applicant, property, and proposed improvements meet all eligibility requirements contained in Section 3 of these Guidelines.
The proposed rehabilitation meets the Criteria contained in the Guidelines.
The proposed improvements comply with all local, state, and federal regulations, including but not limited to:
Land Use Zoning;
Design Review;
Building Permits;
California Environmental Quality Act (CEQA);
National Environmental Policy Act (NEPA), and
Other regulations which may be applicable.
No Applicant shall be excluded or discriminated against because of race, color, religion, ancestry, sex, age, national origin, physical handicap, or any other legally prohibited basis.
Application Interview
The City Staff or Consultant will schedule an appointment after the Application package is received. An in-person or phone interview allows the homeowner to ask questions and receive immediate answers. It also assists the City by working with a more accurate and complete application package, expediting the overall Program process.
Application Process
The City Staff or Consultant is responsible for assisting the homeowner to complete the application forms and for collecting all the required supporting documentation to establish eligibility. All forms must be fully completed and signed accordingly. All supporting documentation must be current (no older than 6 months). The following is a list of the required supporting documentation:
Complete signed copies of the most recent Federal and State Tax Returns [three (3) most recent years if self-employed] and corresponding W-2’s for all income earning household members over 18 who are not full-time students, inclusive of all tax attachments and schedules.
Documentation of income.
Bank statements and asset/investment statements for the last three months.
Documentation evidencing eligibility of other program requirements, such as ownership, occupancy, and property location.
When available, a copy of current appraisal report (dated within three (3) months).
Verification of dependent children living at home.
Proof of full-time student status for dependents 18 years of age or older.
EDD (Employment Development Department) Notice for adult household members who do not receive income.
During the application process, the City Staff or Consultant must:
Certify income eligibility;
Verify property ownership;
Verify property is in the City of Rialto and meets all Zoning requirements with the City of Rialto Planning Department; Verify that property is owner-occupied;
Verify that mortgage, property taxes, and insurance are paid up-to-date, and Create a Master File for each grant application.
Property Ownership Documentation
City Staff or Consultant must obtain supporting documentation to determine eligibility for other program requirements. Verification of property ownership can be determined by:
Eligibility Requirement
Must verify with at least one of the following:
Verification of ownership:
The property must be owned by the applicants.
Copy of grant deed or, quitclaim deed, and
Title report or insurance issued within the last year, which verifies the vesting to be the applicants’ name(s) Verification that property is owner-occupied:
The property must be the owner’s principal place of residence.
Copy of current property tax bill that shows homeowner’s exemption and the subject property as the mailing address.
Verification that mortgage payment is current:
Assistance cannot be provided if payment is not current.
Copy of most recent mortgage statement that shows payment is current, and Mortgage history printout.
Verification of type of first mortgage: No reverse mortgages, negative amortizations for loans. Reverse mortgages, negative amortizations are acceptable for grants only.
Copy of most current mortgage statement, and
Copy of note specifying terms of repayment and interest rate.
Verification that property taxes are current:
Assistance cannot be provided if taxes are not current.
Printout from the San Bernardino County Tax Collector’s website that shows the tax as current. Website at https://www.sbcountyatc.gov/; Receipt of payment (if payment has been recently made and website has not been updated), and Copy of payment arrangements from tax collector for delinquent tax.
Verification that insurance is current.
Copy of current evidence of insurance or policy. It must show the expiration date or specify that it is continuous.
Income Documentation
The Program utilizes the annual income definition as defined in 24 CFR 5.609 (Part 5 annual income) to determine household income eligibility.
Income must be determined based on information obtained from third party verifications and the review of documents provided at the time of application. The income certification is valid for a period of six (6) months (validation period). It will not be required to re-certify income unless six (6) months have lapsed from the time of certification. Grant documents must be executed prior to the expiration of the validation period.
The City Staff or Consultant is responsible for obtaining all the required income documentation for all the sources of income. The sources of income can be determined by:
The Income, Asset, and Employment Disclosure portion of the application.
Tax returns may sometimes reveal relevant income sources, such as interest income, capital gains, dividends, etc., which may not have been disclosed in the grant forms.
Eligibility can be established by examining documentation on the different sources of income for the household. The following is a list of income sources, and examples of acceptable documentation:
Type of Income
Documentation Source – not older than three (3) months
Gross employment income:
Wages
Salary
Overtime
Tips
Commissions
Bonuses
Paycheck stubs (copies of the most recent three (3) months of paycheck stubs).
Certified copies of tax returns and W-2’s if within the first quarter of the new calendar year, requires a signed 4506 form.
Copy of employment contract, which must specify the earnings amount and expiration date.
Net self-employment or business income
Certified copies of tax returns, with signed 4506 form for the previous three (3) years.
Audited financial statement.
Social security benefits
Including SSI payments
Including anticipated Cost of Living Adjustments (COLAs) Written verification from the Social Security Administration.
Copy of award letter stipulating the benefit amount.
Copy of bank statement verifying the direct deposit of the benefit amount.
Periodic determinable allowances:
Child support
Alimony
Regular contributions received from organizations or persons not residing in the dwelling Copy of court decree that establishes amount of support.
Verification from District Attorney’s office that verifies the amount of support.
Notarized affidavit of support .
Net rental income
Tax returns.
Copies of rental agreements/leases, along with a breakdown of monthly expenses to determine net income.
Copies of most recent rent checks, along with a breakdown of monthly expenses to determine net income.
Welfare assistance:
Payments under the Temporary Assistance for Needy Families (TANF) Welfare or General relief
Benefit award letter specifying the amount of the benefit.
Verification from case worker stating the benefit amount.
Copy of checks.
Income from assets:
Savings account(s)
Checking account(s)
Investments
Bank statements showing the last three (3) months of interest.
Savings passbook.
Verification of deposit.
Most recent income tax returns showing the interest earned Investment statements showing the dividends earned and/or anticipated earnings.
Gross amount of payments in lieu of earnings:
Unemployment
Disability compensation
Worker’s compensation
Benefit award letter showing monthly benefit.
Copy of checks.
Gross amount of periodic payment:
Annuities
Pensions/Retirement
Disability benefits
Death benefits
Statement of benefits.
Benefit award letter.
Verification from awarding agency/entity.
Other sources of income:
Union benefits
Other income not specified above
Statement of benefit award that provides evidence benefit amount.
Documentation to support declaration of other income.
No income:
EDD Notice of Unemployment.
Verification of previous employment.
Certification of Zero Income.
No tax returns:
Verification from IRS that no taxes were filed.
Special Circumstances
If income cannot be calculated by using the documentation described above, then the income calculation must be handled on a case-by-case basis as appropriate for the situation. For example, if the income is derived from the sale of recyclable materials, it will be necessary to provide enough documentation (i.e. sales receipts) to reasonably determine annual income. The documentation must be in a form acceptable to the City Staff or Consultant.
Grant Processing Timeline
Grant applications shall be processed in the order received. Upon receipt of a completed grant application, the City Staff or Consultant shall evaluate the application for eligibility and compliance of Program and funding requirements.
If the application is incomplete, City staff or Consultant shall issue a Request for Additional Documentation to the Applicant, allowing fifteen (15) calendar days for the Applicant to submit the missing documentation. If the Applicant fails to provide the required documents within the deadline, a second reminder shall be sent. A ten (10) day extension may be granted for submission. If there is no response to the second notice, a Notice of Cancellation of Grant Application must be mailed.
Property Inspection and Contractor Selection
Inspection Requests
Once Program eligibility has been established, the property must be inspected to determine the work that needs to be performed. The City Staff or Consultant will conduct an inspection of the property.
When reviewing inspection notes, City Staff or Consultant shall consider the following:
Overcrowded conditions. If it’s determined that overcrowded conditions exist and there is a request for the construction of an additional bedroom/bathroom, an explanation will be included in the file. Reports shall include the number of occupants in household, the age and gender of occupants in household, and the existing number and size of sleeping quarters.
Rehabilitation Feasibility. City Staff or Consultant shall make a determination on the rehabilitation feasibility of the property with the following factors considered:
Location of structure;
Excessive rehabilitation costs;
Type of improvements;
Type of structure;
Condition of structure, and
Homeowner’s needs
Property Standards
All repair work must meet current California Building Code (CBC) standards. At a minimum, health and safety hazards and code deficiencies must be addressed.
Work Write-Up
The City Staff or Consultant must prepare the Work Write-Up, which is the set of instructions specifying the proposed rehabilitation work. The Work Write-Up must describe and address any code violations, health and safety deficiencies, and lead hazards in a manner that is sufficiently detailed to serve as the basis for obtaining bids from contractors. It must be completed on the Program standard Work Write-Up form and must include the following.
Scope of Work, which must conform with:
Program requirements, such as lead hazard reduction, correction of health and safety deficiencies and of code violations and incipient code violations, work that improves energy efficiency, and other eligible general property rehabilitation.
Planning and Building Requirements.
Exact meaning of words. For example, “any” implies a limited number selected at the discretion of the reader, while “all” means every.
The type of materials that are allowed under the Program. No luxury upgrades are allowed. Deteriorated materials and components must be replaced with like materials. The write-up must include adjective strings to describe materials, such as “Single hung, double glazed, vinyl windows.” Quantity, such as the number of windows, doors, etc.
Location of where the rehabilitation will occur, such as in the bedroom, kitchen, etc.
Construction method and specific instructions of the proposed work, which uses action verbs strings to describe the method, such as “power-wash, prep and repair stucco surfaces.” Special conditions, requirements, and/or installation method, such as when working with lead contaminated areas, termite infestation, etc.
Performance standards, such as durability and warranties.
General provisions which define rules that apply to all write-ups, such as definitions, process, etc.
Plans (when applicable).
No cross-outs or white out are allowed for deletion of line items. An amended Work Write-Up must be printed out, reflecting any changes made along with the date of amendment.
The homeowner must approve the final Work Write-Up before it is released for bid. The final Work Write-Up and City Staff or Consultant Estimate must be placed in the Master File.
Bid Process
The Bid Process (e.g. solicitation phase) is where City Staff or Consultant obtains three (3) eligible general contractors (contractors) to bid on the project. However, in the case that three (3) bids are not received, the City will consider accepting no less than two (2) eligible general contractor bids.
City Staff or Consultant is responsible for sending out bid packages to all contractors selected on behalf of the homeowner/applicant.
All the bid packages must be identical, and include the following:
Work Write-Up, excluding any estimates of cost.
Copy of the lead-based paint and termite report, when applicable.
Plans or drawings, when applicable.
Bid Requirements
Only lead certified contractors can bid on lead hazard reduction related work.
A minimum of three (3) bids are preferred, however the City has the option to allow two (2) bids.
Bidding contractors must attach any addendums to the Work Write-Up to address all health and safety, or code violation deficiencies not addressed in the Work Write-Up.
Upon the bid deadline, City Staff or Consultant must review all bids received.
The homeowner must review the bids and select a contractor. The homeowner must accept the lowest most responsible bidder.
Once a bid is selected, the City Staff or Consultant must:
Verify that the selected bid is within the maximum grant amount and within ten percent (10%) of the original estimated cost. An explanation must be provided by the homeowner for any bid selected exceeding ten percent (10%) of the City Staff or Consultant estimate.
If the selected bid exceeds the maximum grant amount, the homeowner must reduce the scope of work. Repairs addressing health and safety or code violations cannot be deleted from the Work Write-Up. Also, a change in materials or techniques may be considered to reduce the proposed costs.
If changes or omissions are made, an updated final bid must be prepared. No cross-outs or white out are permitted on the final bid, which will be an attachment to the Agreement for Rehabilitation.
Contractor Qualifications
Only general contractors and sub-contractors who meet the following Program requirements are eligible to enter into Program rehabilitation contracts. All contractors shall provide the City current proof for the following documents:
City Business License;
State of California Class B “General Contractor”;
State of California Contractor’s License in good standing; Liability insurance ($1,000,000 minimum coverage). Contractor must name the City as additionally insured; Automobile insurance ($1,000,000 minimum coverage). Contractor must name the City as additionally insured; Worker’s compensation insurance;
Federal and State of California Debarment List. Contractor must not be debarred; Contractor Unique Identifier Number from sam.gov/content/entity-registration; For lead contractors:
State of California Department of Health Services Lead-Related Construction Certifications for all workers and managers, and Liability and workers’ compensation insurance for lead-related work, and City Staff or Contractor shall verify Contractor qualifications, either annually or when a rehabilitation contract is awarded, to ensure compliance of licensing and insurance requirements.
Applications from local contractors (including women and minority contractors) are encouraged.
Verification of Contractor Qualifications
City Staff or Consultant must review the Contractor application and verify pertinent information, as follows:
Verify licensing information through the Contractor State License Board website at www.cslb.ca.gov. A printout is required for the Contractor Master File.
Verify that Contractor has not been debarred from working on federal contracts or the State of California by accessing the following websites:
https://sam.gov/content/home for HUD debarments. A printout is required for the file. http://www.dir.ca.gov/dlse/debar.html for California debarments. A printout is required for the Contractor Master File.
If each of the investigations is favorable, the contractor is added to the List.
Disqualification of Contractors from the List
Contractors are disqualified from the List if they do not maintain their business credentials, do not comply with Program policies, or perform poorly when awarded a rehabilitation contract. Evidence constituting just cause for Contractor disqualification includes:
Failure to maintain State Contractors Board license;
Insolvency, bankruptcy, or other conduct or condition causing monetary loss for a homeowner or the Program in connection with construction contracts; Activities conflicting with Program policies or procedures such as bid rigging, kickbacks to homeowners, hiring homeowners for pay, failure to comply with the Standard Specifications, abusing cost increases, etc; A history of non-performance in fulfilling construction contracts; A history of contract performance judged unacceptable by City Staff or Consultant due to poor work quality, lack of cooperation, or repeated conflicts with homeowners; Abandoning a job or repeated failure to complete contract work according to specified deadlines; Conviction of a crime in connection with contract work, contract payment or any funds administered by the City, and Failure to respond to three (3) bid requests and annual update of contractor’s package.
Contractor Selection
The homeowner is responsible for selecting a Contractor for the project. The City’s involvement in the Contractor selection process is merely to provide guidance to the homeowner and answer pertinent questions. The City does not select the Contractor on behalf of the homeowner. Once the homeowner has selected the lowest most responsible bidder, the City Staff or Consultant must:
Document the reason why the specific Contractor was selected; Verify that all Contractor documentation is in file and current, and Notify the selected Contractor, in writing, which must include a copy of the updated Work-Write Up, when applicable.
Evaluation and Approval Procedures
The Community Development Department Director will make all final decisions regarding the approval of the grant amount and release of funds.
Grant Documents Signing
The City Staff or Consultant will contact the homeowner and schedule a grant documentation signing. All signers must bring a current and valid California Driver’s license or Identification card. The following grant documents will be signed:
Rialto Revive: HOME Rehabilitation Grant Program Agreement (Agreement) Construction Management Procedures
The City is responsible for monitoring the construction activity of all projects.
Pre-Construction Conference
Prior to the start of the construction work, the City Staff or Consultant must conduct a pre-construction conference with the homeowner and the selected Contractor(s). The purpose of the pre-construction conference is to review the roles and responsibilities of each party, review the Work Write-Up, rehabilitation process, start date, payment schedule, date of completion, and other terms and requirements stipulated in the Agreement. The homeowner and the Contractor must address any questions and concerns regarding the work to be performed and execute the Agreement and Notice to Proceed in order to begin construction.
Rialto Revive: HOME Rehabilitation Grant Program Agreement The homeowner and the selected Contractor must execute a Contractor Agreement (Contractor Agreement), which specifies the repairs and rehabilitation to be completed through the Program. The Agreement is a contract between the homeowner, the Contractor, and the City.
Contractors are authorized to begin the home repairs when they receive a Notice to Proceed. Any work a contractor completes before receipt of a Notice to Proceed is ineligible for payment.
City Permits
Prior to the start of construction, the Contractor must procure the appropriate building and planning permits, as required. Work that requires building or planning permits, but completed without the benefit of permits, will not be honored. The Contractor must comply with permit requirements to receive payment for work completed.
Contractor is responsible for securing applicable permits that may apply for all scope of work items included in the proposal.
Contractor Payment Schedule
Contractors are eligible to receive one (1) progress payment and one (1) final payment. Only completed, inspected, and approved work is eligible for payment. Payments are made for the amount of the satisfactorily completed work minus five-percent (5%) retention.
Ninety-five percent (95%) of the contract amount is distributed to the Contractor in the form of progress payments during construction.
The final five percent (5%) of the contract amount is set aside as a retention payment. The 5% retention is released thirty (30) days after the completion date given that the project has been thoroughly and satisfactorily completed.
The Contractor may request the release of the retained payment by following the same process used for progress payments, subject to the following:
Lien releases have been submitted by Contractor, all subcontractors, materials suppliers, and laborers.
No liens or notice of intent to file a lien have been received by the homeowner or the City.
Copies of permits and final inspection certificates from the City Building Department have been submitted by the Contractor.
Copies of all warranties and manufacturers' instructions have been provided to the homeowner.
The City Staff or Consultant must verify the work completed to ensure compliance with the Agreement and Building requirements.
Progress Payment
The Contractor must call the City Staff or Consultant for a progress inspection and request payment by submitting the following documents to the City Staff or Consultant:
Invoice for the amount due;
Invoices, proof of payment, and/or other applicable supporting documentation; Application for Payment request signed by both Contractor and the homeowner, and Lien release signed by prime contractor, subcontractors and suppliers delivered, installed, and if applicable, inspected.
Progress Inspections
The City Staff or Consultant must monitor the work performed during field inspections conducted on a regular basis. The City Staff or Consultant must visit the job site regularly to check the scope of work, inspect materials, and to confirm the job is on schedule and within budget.
The City staff or Consultant must review the work status with the homeowner and the Contractor in order to remedy any developing problems quickly and to ensure that both are satisfied with the construction process. At the completion of each phase, the City Staff or Consultant must inspect the work and obtain homeowner authorization to release payment to the Contractor.
Lead Monitoring
If the project has lead paint hazards, the Contractor must provide documentation of lead paint training for each person to be working on the project. Lead hazard worker certifications are not necessary if:
The project does not have lead paint (built after 1978 or tested negative for lead paint), OR The project is cleared of lead hazards by a certified lead inspector, and the work to be performed will not create additional lead hazards.
Final Payment
The Contractor must call the City Staff or Consultant for a final inspection and request payment by submitting the following documents to the City Staff or Consultant:
Final Invoice for the amount due;
Invoices, proof of payment, and/or other applicable supporting documentation; Application for Payment request signed by both Contractor and the homeowner, and Final Payment Lien release signed by prime Contractor, subcontractors and suppliers used.
Final Inspection
When the project is completed, the City Staff or Consultant inspects the rehabilitation work item by item with the homeowner and the Contractor. A “punch list” of any corrections or deficiencies must be prepared and issued to the Contractor for correction.
Upon verification of completion, the City Staff or Consultant will release the five percent (5%) retention within thirty (30) days of project completion.
Warranties
Contractors must comply with State law regarding all labor and material warranties. Contractors must warrant that all rehabilitation work meets the accepted standards of the trade and are free from defects. Contractor must warrant that any defects which are found within twelve (12) months from the date of completion must be repaired or replaced at the Contractor’s option and at no expense to homeowner.
Contractor must provide to the homeowner commercially reasonable written warranties and guarantees from its subcontractors and suppliers to the extent that they are obtainable in the ordinary course of business. Contractor must give homeowner a reasonable opportunity to purchase any additional or extended warranties available for purchase from subcontractors or material suppliers.
Change Orders
Written change orders are required when the homeowner requests any changes to the Work Write-Up, such as eliminating an item completely, eliminating one item and substituting another, or adding items. The change orders must state the change and dollar value for the change. The change orders must be signed by both the Contractor and the homeowner and submitted to the City for approval. If the change orders exceed the approved financing, the homeowner must contribute funds toward the project or request for additional funds through the Program, subject to availability, eligibility, and City approval. If additional funds are approved, the homeowner must execute an amended Promissory Note and Deed of Trust prior to receiving the additional funds.
Grievances between Homeowner and Contractor
Any controversy arising out of or relating to Agreement for Rehabilitation, or the breach thereof, must be submitted to binding arbitration in accordance with the provisions of the California Arbitration Law, Code of Civil Procedure 1280 et seq., and the Rules of the American Arbitration Association. The arbitrator will have the final authority to order work performed, to order the payment from one party to another, and to order who must bear the costs of arbitration. Costs to initiate arbitration are to be paid by the party seeking arbitration. Notwithstanding, the party prevailing in any arbitration proceeding shall be entitled to recover from the other all attorney's fees and costs of arbitration.
Termination of Agreement
The homeowner and the Contractor have the right to terminate the Agreement for cause or for convenience by providing written notice as set forth in the Contractor Agreement. In the event of such termination, Contractor is entitled to payment for all work done through and including the effective date of such termination.
Contractor Substitution
Upon a termination of Agreement between the homeowner and the Contractor, the homeowner has the option to select another qualified Contractor to complete the project. The substitution of Contractor must be done once a settlement with the original Contractor has been reached. The new Contractor must meet all Contractor requirements prior to taking over the project.
File Completion and Close-out
Upon release of the 5% retention payment, City Staff or Consultant must close-out the project file, as follows:
The City Staff or Consultant must reconcile the project expenditures and make sure that the file contains copies of all invoices, authorizations for payment, and checks issued.
Project files must contain all program documents including copies of program application, agreement, scope of work, all work changes and before-and-after pictures to illustrate the accomplishments of the Program.
Section VIII – Additional Funds
Due to unforeseen expenses during construction, which exceed the allocated contingency fund, it may be necessary to grant additional monies to complete the project. This is possible if the additional funds will not cause the grant to exceed the maximum grant amount and the maximum LTV.
Section IX – Other Requirements
Homeowners must submit a Program application and obtain approval prior to beginning repairs. Any repairs completed prior to grant approval are not eligible for reimbursement. 100% of the funds must be used to rehabilitate the home. No cash is provided to the homeowner.
There is no asset limitation; however, income derived from assets must be included in the income calculation.
Fire Insurance: The homeowner must maintain fire insurance on the property for the duration of the Program until completion.
Flood Insurance: For homes in a 100-year flood zone, the homeowner must maintain flood insurance in an amount adequate to secure the Program grant and all other encumbrances. Properties located in a Zone X do not require Flood Insurance. This policy must designate the City as Loss Payee and a binder must be provided to the City and maintained in the project Master File.
Grant Enforcement Mechanism: The Consultant shall place a lien against the property to ensure the grant is forgiven over the five-year period.
Residency Verification Mechanism: The Consultant shall issue an annual verification form and request both an electric and water bill, as additional proof of residency.
Section X – Duplication of Benefits
A duplication of benefits occurs when a person, household, business, government, or other entity receives financial assistance from multiple sources for the same purpose, and the total assistance received for that purpose is more than the total need for assistance. Duplication of benefits occurs when Federal financial assistance is provided to a person or entity through a program to address losses and the person or entity has received (or would receive, by acting reasonably to obtain available assistance) financial assistance for the same costs from any other source (including insurance), and the total amount received exceeds the total need for those costs.
All applicants are required to complete a Duplication of Benefits (DOB) Affidavit Section of the application as part of the application process. This affidavit acknowledges the City’s requirement that any person or entity receiving HOME assistance must agree to repay assistance that is determined to be duplicative.
To meet HUD’s requirements, the City has developed a method of assessing whether the use of HOME funds will duplicate financial assistance that is already received or is likely to be received by acting reasonably in evaluating need and the resources available to meet that need.
This assessment process is as follows:
Upon receipt of the completed application packet, the City will review the Duplication of Benefits Affidavit to determine if the applicant has reported receiving any potentially duplicative assistance.
If so, the City or Consultant will request additional information from the applicant, including:
Dates funds were received; and
Specific uses of funds received, including receipts and dates as appropriate.
Based on a review of this information, the City may:
Determine that there is no duplication and proceed with consideration of the application for the full amount requested. Or Determine that there is a partial duplication and proceed with consideration of the application for an amount that reduces the request by the Duplication of Benefits (“DOB”) amount:
(Amount Requested) – (Amount of DOB) = Eligible Amount
Determine that there is a complete duplication and deny the application.
All application documents, including the Affidavit shall be retained in compliance with HUD’s record retention requirements.
Paul GuerreroEconomic Development Manager150 S. Palm AvenueRialto, CA 92376909-820-2505, ext. 2652Kim DameAdministrative Analyst, Community Development(909) [email protected] SanchezProgram Consultant (909) [email protected] GuerreroEconomic Development Manager150 S. Palm AvenueRialto, CA 92376909-820-2505, ext. 2652Kim DameAdministrative Analyst, Community Development(909) [email protected] SanchezProgram Consultant (909) [email protected] Paul Guerrero
Economic Development Manager
150 S. Palm Avenue
Rialto, CA 92376
909-820-2505, ext. 2652
Kim Dame
Administrative Analyst, Community Development
(909) 820-8034
[email protected]
Ashley Sanchez
Program Consultant
(909) 816-5758
[email protected]
Paul Guerrero
Economic Development Manager
150 S. Palm Avenue
Rialto, CA 92376
909-820-2505, ext. 2652
Kim Dame
Administrative Analyst, Community Development
(909) 820-8034
[email protected]
Ashley Sanchez
Program Consultant
(909) 816-5758
[email protected]
2 | Page