Agenda packet — Tulare City Council, March 15, 2022 (part 1 of 2)

City of Tulare Page 1
City of Tulare
City Council
Agenda
Tulare Public Library & Council Chamber
491 North M Street, Tulare
www.tulare.ca.gov
Tuesday, March 15, 2022
6:00 p.m. – Redistricting Public Hearing
7:00 p.m. – Regular Meeting
Mission Statement
To promote a quality of life making Tulare the most desirable community in which to live, learn, play, work, worship and prosper.

Attending and Participating in Meetings
Regular Council Meetings are held on the first and third Tuesdays of each month in the Council Chamber located in the Tulare Public Library at 491 North M Street, Tulare. Additional meetings of the City Council may be called as needed.

Attend meetings in person or access the meeting live via YouTube. For those that wish to provide public comment while not physically in attendance, call (559) 366-1849 during Citizen Comments and/or General Business items. Please note that there will be approximately a 20- second delay in broadcast for viewers. When calling in, please mute speakers if viewing the meeting via YouTube.

City of Tulare YouTube Channel:
https://www.youtube.com/channel/UCdWZiv2o7do1JY0OvGe1_aw/videos Documents related to items on the agenda are accessible on the City’s website at www.tulare.ca.gov and available for viewing at the entrance of the Council Chamber.

Rules for Addressing Council
• Members of the public may address the City Council on matters within the jurisdiction of the City of Tulare.
• If you wish to address Council, please complete one of the yellow speaker cards located at the entrance to the Council Chamber and provide to the Clerk. • Persons wishing to address Council concerning an agendized item will be invited to address the Council during the time that Council is considering that particular agenda item.

Persons wishing to address Council concerning a non-agendized issue will be invited to address Council during the Citizen Comments portion of the meeting. • When invited by the Mayor to speak, please step up to the podium, state your name and city where you reside, and make your comments. Comments are limited to three minutes per speaker.

Agri-Center of the World
Mayor
Dennis A. Mederos, District 4
Vice-Mayor
Terry A. Sayre, District 2
Councilmembers
Jose Sigala, District 1
Stephen C. Harrell, District 3
Patrick Isherwood, District 5
City Council Agenda March 15, 2022
City of Tulare Page 2
I. CALL TO ORDER REDISTRICTING PUBLIC HEARING – 6:00 p.m.

II. CITIZEN COMMENTS - Comments from the public are limited to items listed on the agenda (GC 54954.3a). Speakers will be allowed three minutes. Please begin your comments by stating and spelling your name and providing your city of residence.

III. REDISTRICTING PUBLIC HEARING

IV. ADJOURN REDISTRICTING PUBLIC HEARING
V. CALL TO ORDER REGULAR MEETING – 7:00 p.m. (or immediately following the Redistricting Public Hearing)
VI. PLEDGE OF ALLEGIANCE AND INVOCATION: Father Ivan, St. Rita’s Church VII. CITIZEN COMMENTS - This is the time for citizens to comment on subject matters, not on the agenda within the jurisdiction of the Tulare City Council. The Council Members ask that you keep your comments brief and positive. Creative criticism, presented with appropriate courtesy, is welcome. The Council cannot legally discuss or take official action on citizen request items that are introduced tonight. This is also the time for citizens to comment on items listed under the Consent Calendar or to request an item from the Consent Calendar be pulled for discussion purposes. Comments related to general business/city manager items or public hearing items will be heard at the time the item is discussed or at the time the Public Hearing is opened for comment. In fairness to all who wish to speak, each speaker will be allowed three minutes, with a maximum time of 15 minutes per item, unless otherwise extended by Council. Please begin your comments by stating and spelling your name and providing your city of residence.

VIII. COMMUNICATIONS - Communications are to be submitted to the City Manager’s Office 10 days prior to a Council Meeting to be considered for this section of the Agenda. No action will be taken on matters listed under communications; however, the Council may direct staff to schedule issues raised during communications for a future agenda. Citizen comments will be limited to three minutes, per topic, unless otherwise extended by Council.

IX. CONSENT CALENDAR - All Consent Calendar Items are considered routine and will be enacted in one motion. There will be no separate discussion of these matters unless a request is made, in which event the item will be removed from the Consent Calendar to be discussed and voted upon by a separate motion.

1. Authorization to read ordinances by title only.

2. Approve minutes of the February 24, 2022 special joint session and March 1, 2022 regular meeting. [Submitted by: M. Hermann]

3. Confirm Council Member Harrell’s appointment of Jocelyn Correa to the Planning Commission with a term ending December 31, 2025.

City Council Agenda March 15, 2022
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6. Adopt Resolution 2022-10 authorizing the City of Tulare to apply to the California Department of Housing and Community Development (HCD) for HOME Investment Partnerships Program (“HOME”) funds not to exceed $1,500,000 to implement the following three (3) activities: First-Time Homebuyer (with or without Rehabilitation) Program that will supply down payment and closing cost assistance, an OwnerOccupied Housing Rehabilitation Program to eligible low-income families within the City of Tulare, and a Tenant Based Rental Assistance to provide rent subsidies and/or security deposits to eligible households for a minimum term of six months; adopt Resolution 2022-11 approving the program guidelines; and authorize the City Manager or his/her designee(s) to execute a standard agreement, any amendments thereto, and any and all other documents or instruments necessary or required by HCD for participation in the HOME program. [Submitted by: T. Myers]

9. Authorize the City Manager to complete and execute the documents necessary to accept the dedication of property located as a portion of APN: 169-360-041 for the use of public right-of-way for Project EN0088 – Prosperity Avenue & West Street Improvements Project, subject only to minor conforming and clarifying changes acceptable to the City Attorney and City Manager. [Submitted by: N. Bartsh] X. SCHEDULED PRESENTATIONS

1. Spotlight on Excellence – Employee Recognition [Submitted by: M. Mondell]

2. Community and Economic Development Update [Submitted by: T. Myers] XI. MAYOR/COUNCIL REPORTS OR ITEMS OF INTEREST – G.C. 54954.2(a)(3) XII. GENERAL BUSINESS - Comments related to General Business Items are limited to three minutes per speaker, for a maximum of 30 minutes per item, unless otherwise extended by the Council.

City Council Agenda March 15, 2022
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1. Community and Economic Development
(a) Receive and file the City of Tulare Housing Successor Agency Annual Reports for Fiscal Year 2020-21. [Submitted by: Traci Myers]

2. Engineering
(a) Consider a request by The Gas Company to patch Pleasant Avenue utilizing infrared heating. [Submitted by: M. Miller]
XIII. STAFF UPDATES AND FUTURE AGENDA ITEMS – GC 54954.2(a)(3) XIV. ADJOURN REGULAR MEETING
Americans with Disabilities Act
Pursuant to the Americans with Disabilities Act, persons with a disability who require a disability-related modification or accommodation in order to participate in a meeting, including auxiliary aids or services, may request such modification from the City Clerk’s Office at (559) 684-4200. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to the meeting.

AFFIDAVIT OF POSTING
State of California }
County of Tulare } ss.

City of Tulare }
I, Melissa Hermann, Chief Deputy City Clerk for the City of Tulare, hereby certify, under penalty of perjury, that I caused the posting of this agenda before 5:00 p.m. on Thursday, March 10, 2022, at City Hall, 411 E. Kern Avenue, as well as on the City’s website.

POSTED BY: Melissa Hermann, Chief Deputy City Clerk
Office of the City Manager
To: Mayor and City Council Members
From: Marc Mondell, City Manager
Subject: March 15, 2022 Agenda Memo
Date: March 10, 2022
Time Estimates - Time estimates are provided as part of the Council’s effort to manage its time at Council meetings. Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council, by consensus, reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public.

I. CALL TO ORDER REDISTRICTING PUBLIC HEARING – 6:00 p.m.

II. CITIZEN COMMENTS – Comments from the public are limited to items listed on the agenda (GC 54954.3a). Speakers will be allowed three minutes. Please begin your comments by stating and spelling your name and providing your city of residence.

III. REDISTRICTING PUBLIC HEARING

1. Public Hearing to adopt Resolution 2022-07 approving the By-District Elections, adjusting the boundaries of City Council Election Districts following the 2020 Federal Census and confirming such Council District Boundaries map. Every ten years, cities with by-district election systems must use new census data to review and, if needed, redraw district lines to reflect how local populations have changed. This process, called redistricting, ensures all districts have nearly equal population. The redistricting process for the City of Tulare must be completed by April 17, 2022.

The City adopted its current district boundaries on June 5, 2012, when the voters approved a charter amendment instituting by-district elections starting in November 2012. The current district boundaries are based on 2010 census data as required by law, which reflects that the City of Tulare’s current districts are not population balanced, with a deviation between District 5 (the most populated district) and District 2 (the least populated district) of nearly 33.88%.

Based on this deviation, the City must adjust its district boundary lines by adopting a final district map by an ordinance or resolution, pursuant to California Elections Code Section 21602, before the statutory deadline of April 17, 2022.

In addition to population equality, each council district shall be drawn in a manner that complies with the Federal Voting Rights Act (FVRA). The FVRA prohibits electoral practices that deny to racial and language minority groups an equal opportunity to Tulare City Council Page 2
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nominate and elect candidates of their choice. At the same time, it prohibits using race as the predominate factor for drawing district boundaries, also known as gerrymandering.

Moreover, the districts must now be redrawn using the 2020 census data and in compliance with the FAIR MAPS Act, which was adopted by the California legislature as AB 849 and took effect January 1, 2020.

Under the Act, the council shall draw and adopt boundaries using the following criteria in the listed order of priority (Elections Code 21621(c)):

1. Comply with the federal requirements of equal population and the Voting Rights Act;

2. Geographically contiguous;

3. Undivided neighborhoods and “communities of interest” (socio-economic geographic areas that should be kept together);

4. Easily identifiable boundaries;

5. Compact (do not bypass one group of people to get to a more distant group of people);

6. Shall not favor or discriminate against a political party.

The City held the following public hearings and public meetings to enable community members to provide input on the drawing of district maps and to discuss criteria*.

Tuesday, May 4, 2021 at 6:00 p.m.

Tuesday, July 20, 2021 at 6:00 p.m.

Tuesday, November 2, 2021 at 6:00 p.m.
*Tuesday, December 7, 2022 at 7:00 p.m.

Tuesday, January 18, 2022 at 6:15 p.m.

Tuesday, February 15, 2022 at 5:30 p.m.

At the February 15, 2022, Council selected Public Maps 204, 206 and NDC Map 301, of which they directed NDC to edit, in order to obtain a third district above 60 HCVAP, if possible. These maps are being presented for consideration and possible selection of a final map adjusting the boundaries of City Council Election Districts. Staff recommends Council adopt Resolution 2022-07 approving the By-District Elections, adjusting the boundaries of City Council Election Districts following the 2020 Federal Census and confirming such Council District Boundaries map; or, alternatively, direct staff further on said maps to be considered at a future meeting.

IV. ADJOURN REDISTRICTING PUBLIC HEARING
V. CALL TO ORDER REGULAR SESSION – 7:00 p.m. (or immediately following the Redistricting Public Hearing)
VI. PLEDGE OF ALLEGIANCE AND INVOCATION: Father Ivan, St. Rita’s Church VII. CITIZEN COMMENTS - This is the time for citizens to comment on subject matters, not on the agenda within the jurisdiction of the Tulare City Council. The Council Members ask that Tulare City Council Page 3
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you keep your comments brief and positive. Creative criticism, presented with appropriate courtesy, is welcome. The Council cannot legally discuss or take official action on citizen request items that are introduced tonight. This is also the time for citizens to comment on items listed under the Consent Calendar or to request an item from the Consent Calendar be pulled for discussion purposes. Comments related to general business/city manager items or public hearing items will be heard at the time the item is discussed or at the time the Public Hearing is opened for comment. In fairness to all who wish to speak, each speaker will be allowed three minutes, with a maximum time of 15 minutes per item, unless otherwise extended by Council. Please begin your comments by stating and spelling your name and providing your city of residence.

VIII. COMMUNICATIONS - [Time Estimate: 7:15-7:20 p.m.] Communications are to be submitted to the City Manager’s Office 10 days prior to a Council Meeting to be considered for this section of the Agenda. No action will be taken on matters listed under communications; however, the Council may direct staff to schedule issues raised during communications for a future agenda. Citizen comments will be limited to three minutes, per topic, unless otherwise extended by Council.

IX. CONSENT CALENDAR - [Time Estimate: 7:20-7:30 p.m.] All Consent Calendar Items are considered routine and will be enacted in one motion. There will be no separate discussion of these matters unless a request is made, in which event the item will be removed from the Consent Calendar to be discussed and voted upon by a separate motion.

1. Authorization to read ordinances by title only.

2. Approve minutes of the February 24, 2022 special joint session and March 1, 2022 regular meeting. [Submitted by: M. Hermann] The minutes of the February 24, 2022 special joint session and March 1, 2022 regular meeting are submitted for Council approval. Staff recommends Council approve as presented.

3. Confirm Council Member Harrell’s appointment of Jocelyn Correa to the Planning Commission with a term ending December 31, 2025. The City of Tulare has eight boards, commissions, and committees in addition to the City Council. From time to time, appointments and reappointments are necessary due to vacancies and expiring terms.

On February 27, 2022, Anthony Olivares resigned from the Planning Commission.

Planning Commissioners are appointed by each seat of the Council. Mr. Olivares was appointed by Council Seat 3.

Council Member Harrell informed staff of his desire to appoint Jocelyn Correa to fill the current vacancy. Staff recommends Council confirm Council Member Harrell’s appointment of Jocelyn Correa to the Planning Commission with a term ending December 31, 2025.

4. Authorize the City Manager to sign a contract with QK, Inc. of Visalia, CA in an amount not to exceed $282,466 for professional consulting services associated with the comprehensive update of the City of Tulare Zoning Code. In the 2019-20 Budget Act, Governor Gavin Newsom allocated $250 million for all regions, cities, and counties to prioritize planning activities that accelerate housing production to meet Tulare City Council Page 4
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identified needs of every community. With this allocation, The California Department of Housing and Community Development (HCD) established the Local Early Action Planning Grant Program (LEAP) with $119 million for cities and counties. LEAP provides one-time grant funding to cities and counties to update their planning documents and implement process improvements that will facilitate the acceleration of housing production and help local governments prepare for their 6th cycle Regional Housing Needs Assessment (RHNA).

On May 19, 2020 Tulare City Council adopted Resolution 2020-06, authorizing application for and receipt of LEAP Grant Program Funds. On July 22, 2020, HCD notified City staff of the City’s successful application and the award of $300,000 in grant funds from the LEAP program. The standard agreement was fully executed between HCD and the City on February 16, 2021. With funding secured, this past summer and fall the City’s Department of Community & Economic Development issued a request for proposals (RFP) for qualified consulting firms to assist the City in the comprehensive update to the City’s Zoning Code. The City’s zoning, or development code, is a major regulatory planning document that guides development in the City.

Five consulting firms submitted proposals by the deadline, with the top four being interviewed as well. QK, Inc. scored the highest and is the preferred firm selected by City staff. QK has proposed to perform the necessary work for $282,466. The proposed cost is in line with industry standards and is within the budget of the LEAP grant award the City is using to pay for this project. Staff recommends Council authorize the City Manager to sign a contract with QK, Inc. of Visalia, CA in an amount not to exceed $282,466 for professional consulting services associated with the comprehensive update of the City of Tulare Zoning Code.

5. Adopt Resolution 2022-09 declaring 7,500sf of City-owned property at the southwest corner of Cartmill Avenue and Akers Street, APN 166-240-003, as surplus property; and adopt Notice of Exemption, which determines that the potential sale of the lots is exempt from environmental review. The City is in possession of a parcel of land located at the southwest corner of Cartmill Avenue and Akers Street. The property was originally part of a small airport used for crop dusting activities, which was acquired by the Redevelopment Agency of the City of Tulare for remediation. Following remediation, the City retained the property for needed right-ofway associated with the Cartmill Avenue interchange project and future extension of Akers Street south of Cartmill Avenue. The Cartmill Interchange project has since completed and the City has converted the portion of the property needed from the extension of Akers Street to street right-of-way. The remainder of the parcel is approximately 7,500 square feet. The adjacent property owner to the west (Bud Mouw) is in the process of developing his property and has expressed an interest in obtaining the remainder of the City parcel.

As of January 1, 2021, the California Housing and Community Development Department was required to begin enforcing guidelines of the California Surplus Land Act, which includes the process for declaring City owned property as surplus, reviewing each jurisdiction’s notices of availability sent, negotiations conducted with any responding entities and review of written findings of the local agency.

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The following is a summary of surplus property requirements:
a. “Surplus land” means land owned by the City in fee that the City Council declares, at a regular meeting, as surplus and not necessary for the “agency’s use.” Gov. Code 54221(b)(1).
b. Surplus property rules do not apply to “exempt surplus land,” which is defined in Gov.

Code § 54221(f)(1). One type of exempt surplus property is land that is less than five thousand (5,000) square feet in size, (ii) less than the minimum legal residential building lots size within the City, or five thousand (5,000) square feet in area, whichever is less, or (iii) has no record access and is less than ten thousand (10,000) square feet in area; and is not contiguous to land owned by the state or local agency that is used for openspace or low- and moderate-income housing. c. Prior to disposing of or participating in negotiations to dispose of surplus property, the City must provide a written notice of availability to all specified agencies and entities having jurisdiction over the following: development of low- and moderate-income housing, open space, and school facilities construction or school district open space. Gov. Code § 54222.
d. A notice sent to housing entities must be sent to any public entity (defined in H&S Code § 50079) within whose jurisdiction the land is located and to “housing sponsors” (defined in H&S § 50074) that have notified HCD of their interest in surplus property. Gov. Code § 54222(a)(1).
e. “Housing sponsor” includes any public or private entity certified by HCD to own, construct, acquire, or rehabilitate a housing development. Health & Safety Code § 50074. The California Department of Housing and Community Development (HCD) maintains a list of “housing sponsors.”
f. An entity desiring to purchase or lease surplus property offered by the City shall notify the City in writing within sixty (60) days after the City’s notice of availability is sent via certified mail or via email. Gov. Code § 54222(e).
g. The City and an interested entity shall enter into good faith negotiations. If the parties are unable to negotiate terms during a ninety (90) day negotiation period, the City may sell the property to another party. Gov. Code 55223(a). h. Prior to agreeing to disposition terms, the City must provide HCD a description of notices of availability sent and negotiations conducted with responding entities and a copy of affordability restrictions to be recorded against the property per Gov. Code § 54233 or § 54233.5. The surplus property may not be sold until HCD’s formal approval letter is received.

The disposition of the subject property is subject to the State’s surplus property requirements.

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The property is small in size, but it is larger than the minimum five thousand (5,000) square foot lot size required under the City’s Municipal Code for a single family residence. Although the property may not be zoned for single family residential use, recent changes to State law allow housing, especially low-income housing, to be constructed regardless of a property’s zoning designation under certain circumstances.

General Plan Consistency
California Government Code Section 65402 requires that surplus property declarations and the disposition of the City’s real property be reviewed by the Planning Commission for determination as to whether the disposition conforms to the City’s adopted General Plan.

On February 14, 2022, the Planning Commission determined that the sale of the surplus property is consistent with the City’s 2035 General Plan adopted October 7, 2014.

Specifically, the Planning Commission determined the proposed sale of the lot and its development as affordable housing is consistent with the following sections of the General Plan:

LU-P3.1: Neighborhood Housing Mix – The City shall encourage mixed use neighborhoods to have a variety of housing types and densities to help create an overall healthy, balanced community.

LU-P3.6: High Density Residential Locations – The City shall encourage the development of higher density housing including near commercial services, employment centers, principal arterial routes and public transportation.

LU-P.3.10: Affordable Housing – The City shall encourage the development of affordable housing to ensure that a variety of housing options are available to all income, age and cultural groups.

ENVIRONMENTAL ASSESSMENT:

Pursuant to Section 15312 of the California Environmental Quality Act Guidelines (CEQA), the sale of surplus government property is exempt from further environmental review. Staff recommends Council adopt Resolution 2022-09 declaring 7,500sf of City-owned property at the southwest corner of Cartmill Avenue and Akers Street, APN 166-240-003, as surplus property; and adopt Notice of Exemption, which determines that the potential sale of the lots is exempt from environmental review.

6. Adopt Resolution 2022-10 authorizing the City of Tulare to apply to the California Department of Housing and Community Development (HCD) for HOME Investment Partnerships Program (“HOME”) funds not to exceed $1,500,000 to implement the following three (3) activities: First-Time Homebuyer (with or without Rehabilitation) Program that will supply down payment and closing cost assistance, an Owner-Occupied Housing Rehabilitation Program to eligible lowincome families within the City of Tulare, and a Tenant Based Rental Assistance to provide rent subsidies and/or security deposits to eligible households for a Tulare City Council Page 7
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minimum term of six months; adopt Resolution 2022-11 approving the program guidelines; and authorize the City Manager or his/her designee(s) to execute a standard agreement, any amendments thereto, and any and all other documents or instruments necessary or required by HCD for participation in the HOME program. On December 1, 2022, HCD released a NOFA announcing the availability of HOME Program funds of approximately $72 million from the 2020/2021 funding allocation. Competitive applications are due on March 30, 2022.

Eligible activities predominantly benefit low- and moderate-income Californians and include:

1. Rental Projects (rental new construction and rental rehabilitation);

2. First-Time Home Buyer (FTHB) Projects (construction financing and homebuyer mortgage assistance only).

3. Program Activities
a. First-Time Homebuyer (FTHB) program
• Acquisition-only down payment assistance
• Acquisition with rehabilitation
• Infill new construction
b. Owner-Occupied Rehabilitation (OOR) program
c. Tennant-Based Rental Assistance (TBRA) program
Eligible Applications may apply for two activities as follows:

1. One rental project and one FTHB project, or

2. One rental project and any combination of eligible Program Activities, or

3. One FTHB project and any combination of eligible Program Activities, except for a FTHB program.

Applicants applying for Project can apply for up to $7 million. The minimum application amount for any single program is $300,000 with max of $2 million, dependent on the current expenditure rate of awards received in 2015, 2016 and 2018. 2019 Awards will not count toward the expenditure rate calculation. An applicant does not have to have 50% of existing awards expended to be eligible but will be limited to $700,000 as their max funding amount if they have not.

To meet readiness requirements and maximize points the city must also have approved program guidelines for both the Homebuyer and Owner-Occupied Housing Rehabilitation Program. Guideline templates are provided by the HOME Program with opportunities for grantees to specify underwriting and loan terms as allowed per regulations. Guidelines are then reviewed and approved by the HOME Program prior to being adopted by the Grantees governing board.

The city currently has 4 households on a waiting list for owner-occupied housing rehabilitation. Job costs range from $85,000 to $250,000 per unit depending on the extent of the repairs required. In addition, the city continues to receive interest in the City’s First-Time Homebuyer Program. First-Time Homebuyer Loans an average $100,000 per unit.

The City proposes to apply for CDBG funds for the following projects:

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Owner Occupied Housing Rehab $ 600,000
General Administration (up to 2.5% of activity funds awarded) First-Time Homebuyer Acquisition with rehabilitation $ 600,000 General Administration (up to 2.5% of activity funds awarded) Tennant Based Rental Assistance $ 300,000
General Administration (up to 2.5% of activity funds awarded) Total $1,500,000
The Proposed Owner-Occupied Rehabilitation program guidelines provides funding to homeowners with household incomes at or below 80% of the area median income (AMI) to fund home repairs for the correction of items which jeopardize the health and safety of the occupants. Units being assisted must be clear of all code violations and all major components of the unit must have a useful life of five years upon completion of work. All work must be performed by a licensed contract and meet building code standards. Units are eligible for reconstruction when the cost to repair the unit exceeds the cost to construct a new unit in its place. Reconstructed units must be replaced by a like unit, no additions of bedrooms or bathrooms are allowed unless justified due to overcrowding.

Financing is provided up to the maximum allowed per bedroom as provided by HUD.

Properties after-rehabilitation value may not exceed the maximum purchase price/value limit set by HUD annually. Financing is provided as deferred payment, zero interest loans, with a 30-year term, due and payable upon sale or transfer of title.

The proposed First-Time Homebuyer Acquisition with Rehabilitation guidelines provides secondary financing to first-time homebuyers with household incomes at or below 80% of area median income (AMI) for down payment, closing costs and gap financing, as well as home repairs, if needed. Funding is available up to 50% of the maximum purchase price or the maximum funding limit set by HUD, whichever is less. Loans are zero interest, deferred payment loans with a term of 45 years and become due and payable upon sale or transfer of title. The amount of funding provided is based on the household income, housing and debt ratios, maximum funding borrower qualifies for with a primary lender, and the purchase price of the unit. Homes purchased may not exceed the maximum purchase price limits provided by HUD annually.

FINANCIAL IMPACT: SHE will complete the HOME application and all necessary due diligence at a cost of $4,000. If no award is given then there is no additional obligation to the City. If the HOME funds are awarded the City would receive $37,500 in general admin funds. These funds would help offset any staff time used to complete annual reports and general contract management. The City’s oversight commitments would be minimal, mostly booking yearly accrued interest to the soft loan, since the project will be income certified and monitored through the tax credit program. SHE will provide all information needed for reporting purposes. Staff recommends Council adopt Resolution 2022-10 authorizing the City of Tulare to apply to the California Department of Housing and Community Development (HCD) for HOME Investment Partnerships Program (“HOME”) funds not to exceed $1,500,000 to Tulare City Council Page 9
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implement the following three (3) activities: First-Time Homebuyer (with or without Rehabilitation) Program that will supply down payment and closing cost assistance, an Owner-Occupied Housing Rehabilitation Program to eligible lowincome families within the City of Tulare, and a Tenant Based Rental Assistance to provide rent subsidies and/or security deposits to eligible households for a minimum term of six months; adopt Resolution 2022-11 approving the program guidelines; and authorize the City Manager or his/her designee(s) to execute a standard agreement, any amendments thereto, and any and all other documents or instruments necessary or required by HCD for participation in the HOME program.

7. Approve the final map and subdivision improvement agreement for Phases 2 & 3 of The Greens at Oak Creek Subdivision for recordation, and accept all easements and dedications offered to the City. Planning Commission Resolution No. 5248 adopted on August 28, 2017 approved the tentative subdivision map for The Greens at Oak Creek Subdivision located 1,700 feet north of Tulare Avenue, east of Mooney Boulevard. The 88-lot single family residential subdivision comprises approximately 19.5 acres to be constructed in 3 phases. Phase 1 of The Greens at Oak Creek was accepted April 9, 2020.

A copy of the Planning Commission Resolution No. 5248 and the final map are attached. Staff recommends Council approve the final map and subdivision improvement agreement for Phases 2 & 3 of The Greens at Oak Creek Subdivision for recordation, and accept all easements and dedications offered to the City.

8. Award and authorize the City Manager to sign a contract with NV5 for geotechnical and materials testing services related to City Project EN0092, Pratt Street/Mefford-Choice Tracts Improvement Project in the amount of $153,357; and Authorize the City Manager or designee to approve contract change orders in an amount not to exceed 10% ($15,335.70) of the contract amount. This project is a street and utility improvement project on the following roadways: Pratt Street between Bardsley Avenue and Inyo Avenue (SR137); Walter Street between Bardsley Avenue and Elm Avenue; Oliver Street between Bardsley Avenue and Elm Avenue; Cleveland Street between Bardsley Avenue and Elm Avenue; Victoria Street between Bardsley Avenue and Elm Avenue; Elm Avenue between Howard Street and D Street; C Street between Elm Avenue and Sonora Avenue, and the Cleveland/Victoria and Victoria/Pratt alleys between Bardsley Avenue and Elm Avenue. The project will reconstruct the street section and will include ADA compliance improvements to intersection curb returns and alley/sidewalk intersections that fall within project limits. Additionally, it will address necessary water, sewer and storm drain improvements within those limits. The need for the project was identified through the City’s Pavement Management System and the review of the condition of the City’s utility infrastructure. This project was included and approved as a part of the City’s 2019-2024 transportation and utility CIP program budget.

In addition to the actual construction contract, it will be necessary to supplement City staff with various consultant services from the City’s list of on-call consultants. During Tulare City Council Page 10
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the course of constructing street, water, sewer, storm drain, and concrete improvements associated with this project, it will be necessary to perform materials testing to ensure compliance with City standards. Such testing is comprised of various material property verifications and compaction testing. Material testing services, including laboratory testing, is outside the capabilities of the City.

A Request for Qualifications for On-Call Geotechnical and Materials Testing Services was issued on February 4, 2020 out of which five firms were recommended for inclusion on a list of prequalified Geotechnical and Materials Testing consultants. The Staff recommended list was approved by the City Council at their April 7, 2020 meeting.

On December 7, 2021, the City Council approved various contracts required for the construction of the Pratt Street/Mefford-Choice Tracts Improvement Project, including one with BSK Associates (BSK) of Fresno, CA for geotechnical and materials testing services. BSK is currently performing work on several other City projects. Due to some recent staffing changes in their key personnel positions, they have struggled to adequately perform work as required by the City on those projects. This has raised concerns regarding their ability to complete work on the Pratt Street/Mefford-Choice Tracts Improvements project. For this reason, the City has reached out to NV5, another firm on the City’s on-call list of consultants, for a proposal for this work on the project.

NV5 has demonstrated in their proposal that they have the skills, expertise and resources available to meet the City’s needs and timeframe to complete the work on this project. NV5 has reviewed the scope of this project and has proposed to perform the necessary services on a time and materials basis, not to exceed $153,357, in accordance with the provisions of their on-call contract. This is slightly more than the previously proposed and approved amount with BSK in the amount of $139,067.00.

However, since the work will be performed on a time and materials basis and the City will only be charged for the actual work performed, actual project costs should not significantly differ between the two firms. There is not anticipated to be an impact to the project budget, and should not be a need for additional funding at this time.

Finally, due to the inclusion of funding from various utility related funds on this project, this contract will also be taken to the Board of Public Utilities for review and approval at its regular meeting on March 17, 2022. Staff recommends Council award and authorize the City Manager to sign a contract with NV5 for geotechnical and materials testing services related to City Project EN0092, Pratt Street/MeffordChoice Tracts Improvement Project in the amount of $153,357; and Authorize the City Manager or designee to approve contract change orders in an amount not to exceed 10% ($15,335.70) of the contract amount.

9. Authorize the City Manager to complete and execute the documents necessary to accept the dedication of property located as a portion of APN: 169-360-041 for the use of public right-of-way for Project EN0088 – Prosperity Avenue & West Street Improvements Project, subject only to minor conforming and clarifying changes acceptable to the City Attorney and City Manager. A traffic study was performed for a proposed development on the southeast corner of Prosperity Avenue and West Street, which showed that warrants were met for a new traffic signal at this intersection.

The City Council subsequently provided staff with direction to review the condition of Tulare City Council Page 11
Agenda Memo – March 15, 2022
this intersection, and to prioritize construction of improvements at this location. The resulting project, EN0088 – Prosperity Avenue & West Street Improvements Project, will construct the intersection to its ultimate width, install ADA compliant dual curb ramps at each corner, and install master-planned utility improvements within the project limits.

Street improvements will include sufficient transitions from the full-width widening at the curb returns back down to the existing pavement width. An eight-phase traffic signal with emergency preemption, video detection for both vehicle and bicycle traffic, and associated appurtenances will be included in the project.

In order to widen the intersection and construct the ultimate improvements, the City needs to acquire additional property. In anticipation of developing the southeast corner, the property owner, Mr. Darshan Singh, has agreed to dedicate the necessary right-ofway across his frontage at no cost to the City in conjunction with the City project. This dedication would have otherwise been required by the City as a condition of development of his property. Mr. Singh has also graciously provided a temporary grant of easement needed for the construction of the intersection improvements. Staff recommends Council authorize the City Manager to complete and execute the documents necessary to accept the dedication of property located as a portion of APN: 169-360-041 for the use of public right-of-way for Project EN0088 – Prosperity Avenue & West Street Improvements Project, subject only to minor conforming and clarifying changes acceptable to the City Attorney and City Manager.

X. SCHEDULED CITIZEN OR GROUP PRESENTATIONS [Time Estimate: 7:30-7:50 p.m.]

1. Spotlight on Excellence – Employee Recognition [Submitted by: M. Mondell]

2. Community and Economic Development Update [Submitted by: T. Myers] XI. MAYOR/COUNCIL REPORTS OR ITEMS OF INTEREST – GC 54954.2(a)(3) [Time Estimate:
7:50-8:05 p.m.]
XII. GENERAL BUSINESS - Comments related to General Business Items are limited to three minutes per speaker, for a maximum of 30 minutes per item, unless otherwise extended by the Council.

1. Community and Economic Development [Time Estimate: 8:05-8:20 p.m.] (a) Receive and file the City of Tulare Housing Successor Agency Annual Reports for Fiscal Year 2020-21. The City of Tulare (“City”) is the Housing Successor Agency to the former Tulare Redevelopment Agency (“Housing Successor”). Health and Safety Code (“HSC”) Section 34176.1 (enacted by Senate Bill 341 and related legislation) requires the Housing Successor Agency to prepare an annual report documenting compliance with expenditure proportionality and other requirements pertaining to its Low and Moderate Income Housing Asset Fund (“Housing Asset Fund”). The report is due to the California Department of Housing and Community Development (“HCD”) by April 1st annually. The report must be also be presented to City Council and posted on the City’s website.

Tulare City Council Page 12
Agenda Memo – March 15, 2022
Housing Successor staff and consultants have prepared a Housing Successor Agency Annual Report for the Fiscal Year (“FY”) 2020-21. The report is being presented to City Council to receive and file. Staff will submit the report to HCD by April 1, 2022. The following sections summarize the Housing Successor’s finances and compliance with various requirements. Overall, the Housing Successor is compliant with all requirements.

Low and Moderate Income Housing Asset Fund
The Housing Asset Fund includes all the assets that were transferred from the Tulare Redevelopment Agency (“Agency”) to the Housing Successor upon dissolution of the former Agency. The assets included:
• Real properties,
• Low/Mod encumbrances,
• Loan/grants receivable, and
• Rents/operations.

As of June 30, 2021, the Housing Asset Fund had a cash balance of $1,670,379 and a total asset balance of $11,155,289. Most of the asset value is from loans receivable that are due to the Housing Successor.

In FY 2020-21, the Housing Asset Fund had $79,816 in deposits from interest income and loan repayments. Revenues have ranged from approximately $37,000 to $93,000 over the past five years (FYs 2017-18 to 2020-21).

Expenses in FY 2020-21 were $35,309. All expenditures have been administrative expenses within the annual limits permitted by law. Expenditures have ranged from approximately $320 to $36,000 over the past five years.

Property Disposition
State law requires housing successors to sell or develop properties transferred from the former redevelopment agency within five to ten years. Upon the dissolution of redevelopment, the former Agency transferred one real property at 340 Howard Street that was sold in December 2017, within the timeframe required by law.

Income & Age Proportionality
If housing successors expend money on projects, State law requires at least 30 percent to be spent on extremely low income rental housing, among other restrictions. FY 2020-21 is the first year of the second five-year compliance period for income proportionality, which runs from June 1, 2019 to June 30, 2024. The Housing Successor has met all requirements for expenditures by income level in FY 2020-21. The Housing Successor also complied with all requirements from the first five-year compliance period, which began on January 1, 2014 and ended on June 30, 2019.

Tulare City Council Page 13
Agenda Memo – March 15, 2022
State law also sets a limit on the portion of publicly assisted deed-restricted rental housing that may be restricted to seniors. The City and former Agency assisted 2 properties with 106 units in the last 10 years, none of which are restricted to seniors. The City may spend more Housing Asset Funds subsidizing senior rental units in the future; however, it must ensure that no more than 50 percent of the total aggregate number of rental units at all affordability levels produced within the preceding 10 years are restricted to seniors.

Excess Surplus
Senate Bill 341 reinstated a requirement to prevent housing successors from accumulating an excess surplus, which is generally defined as unencumbered cash that exceeds the greater of $1 million or the aggregate amount deposited into the Housing Asset Fund in the preceding four years.

The Housing Successor had an excess surplus of $602,542 carried over from prior years at of the end of FY 2019-20. The entire excess surplus balance was eliminated in FY 2020-21 by encumbering $1,000,000 toward an 81-unit permanent supportive housing project pending development by Self-Help Enterprises. The Housing Successor had no excess surplus at the end of FY 2020-21.

Homeownership Unit Inventory
State law requires the annual report to contain an inventory of any homeownership units assisted by the Housing Successor that require restrictions, covenants, or an adopted program that protects Housing Asset Fund monies. The Housing Successor oversees 58 homeownership units with affordability restrictions that are listed in the annual report.

FISCAL IMPACT:

The Housing Successor Agency Annual Reports are informational and have no fiscal impact. Staff recommends Council receive and file the City of Tulare Housing Successor Agency Annual Reports for Fiscal Year 2020-21.

2. Engineering Services [Time Estimate: 8:20-8:35 p.m.] (a) Consider a request by The Gas Company to patch Pleasant Avenue utilizing infrared heating. Project EN0084 – Pleasant Avenue Improvements Project addresses pavement and utility infrastructure improvements along Pleasant Avenue between the Enterprise Street and N ‘H’ Street. As part of the larger project, curb, gutter, ramp, and sidewalk improvements to facilitate a future traffic signal at the intersection of Pleasant Avenue and West Street will be constructed.

Signal poles and luminaires will be installed with the project along with underground conduits in preparation for the future traffic signal. Full traffic signal build-out is included as an alternative bid item with the current project. A recommendation regarding the full build-out alternative will be made to City Council once bids are opened and funding is identified.

Tulare City Council Page 14
Agenda Memo – March 15, 2022
During the design phase of the project, notification of the pending project was provided to the affected public utility companies, which included The Gas Company. The intent of this notification is to provide an opportunity for the various utility companies to evaluate their infrastructure within the project limits, and to hopefully allow them to coordinate any necessary repairs to that infrastructure with the City project. In doing so, it is the goal of the City to avoid instances where the utility companies cut into newly constructed roadways for several years. Such cuts invariably impact the structural integrity of the roadway and adversely impact its expected service life. They also result in the public perception that the City is not properly coordinating work, and is subsequently wasting taxpayer money by cutting into recently repaired streets.

In October of 2021, while the City’s contractor was performing underground utility work on the project, a gas leak was discovered in the existing gas mainline. The Gas Company was notified and responded to the leak. At that time, the specific leak was repaired, and Gas Company personnel noted the poor condition of pipelines in this area due to their age and type of material used. It was communicated to City staff that there was no plan to replace their infrastructure in this area at that time.

Within months of completion of the reconstruction and paving of Pleasant Avenue between West Street and E Street, The Gas Company identified the need for emergency repairs to their gas main in Pleasant Avenue west of “A” Street; the same area as the prior leak. They applied for and received a City encroachment permit to make the repairs. As a result of the repairs, several cuts have been made in the recently reconstructed roadway. To restore these areas, the City has requested that The Gas Company mill and overlay sections of pavement beyond the limits of the cuts, resulting in repaved areas that extend from the lip of gutter to the centerline of the street. Not only does this reduce the negative aesthetic impact of a “patch,” but from a structural integrity standpoint, this would place the longitudinal seams of the patches outside of the wheel path of vehicles and minimize the potential for degradation of the repair. By creating a larger paved area for the patch, impacts to ride quality would also be reduced. Placing the seam between the patch area and the existing asphalt at centerline is also expected to reduce the risk of accelerated pavement failure.

Representatives of The Gas Company have requested that they be allowed to use an alternative method to repair the street cuts made during their gas main repairs.

The method would limit the required paving to the areas of roadway excavation. An infrared heater would be used to heat and soften the asphalt so that the seams between the pavement patch and the existing asphalt could be blended together.

Conceptually, the result is a virtually seamless surface. City staff initially denied the request to use this method based on the following concerns:
• There is the risk and likelihood of overheating the asphalt with the infrared heater, resulting in the oil in the asphalt material burning off. This increases the brittleness of the pavement, thereby reducing its longevity.

Tulare City Council Page 15
Agenda Memo – March 15, 2022
• The infrared heater can only soften the upper inch or so of the asphalt pavement being treated, and the lower depths of asphalt (3-inches, in this case) are not affected and cannot be fully blended together at the seam between the patch and existing asphalt. In such a case, there would still be a subsurface seam which in time could reflect through to the surface and cause premature failure of the paving at that location.

When presented with these concerns, representatives of The Gas Company indicated that this method of pavement repair is routinely performed throughout the region with successful results. They further indicated that they would guarantee the repairs for the life of the paving.

Staff can confirm that this method has been used elsewhere, including within the City of Tulare. However, we don’t have a sufficient history with its use to verify the longevity of repairs made utilizing this method.

Due to the concerns staff has regarding the alternative method being requested by The Gas Company, and the potential impacts to a high-profile capital improvement project that represents a significant financial investment by the City, it was determined that Council should be advised of the situation and given the opportunity to provide direction regarding the matter. A representative of The Gas Company has indicated that they will be in attendance to answer questions from Council. Staff recommends Council consider a request by The Gas Company to patch Pleasant Avenue utilizing infrared heating.

XIII. STAFF UPDATES AND FUTURE AGENDA ITEMS – GC 54954.2(a)(3) [Time Estimate: 8:35- 8:55 p.m.]
XIV. ADJOURN REGULAR MEETING

CITY OF TULARE

AGENDA ITEM TRANSMITTAL SHEET
Submitting Department: City Manager
For Council Meeting of: March 15, 2022
Documents Attached: ☐Ordinance ☒Resolution ☒Other ☐None AGENDA ITEM:

Public Hearing to adopt Resolution 2022-07 approving the By-District Elections, adjusting the boundaries of City Council Election Districts following the 2020 Federal Census and confirming such Council District Boundaries map; or, alternatively, direct staff further on said maps to be considered at a future meeting.

IS PUBLIC HEARING REQUIRED: ☒Yes ☐No
BACKGROUND/EXPLANATION:

Every ten years, cities with by-district election systems must use new census data to review and, if needed, redraw district lines to reflect how local populations have changed. This process, called redistricting, ensures all districts have nearly equal population. The redistricting process for the City of Tulare must be completed by April 17, 2022.

In addition to population equality, each council district shall be drawn in a manner that complies with the Federal Voting Rights Act (FVRA). The FVRA prohibits electoral practices that deny to racial and language minority groups an equal opportunity to nominate and elect candidates of their choice. At the same time, it prohibits using race as the predominate factor for drawing district boundaries, also known as gerrymandering.

Under the Act, the council shall draw and adopt boundaries using the following criteria in the listed order of priority (Elections Code 21621(c)):

1. Comply with the federal requirements of equal population and the Voting Rights Act;

2. Geographically contiguous;
AGENDA ITEM: Redistricting Public Hearing

3. Undivided neighborhoods and “communities of interest” (socio-economic geographic areas that should be kept together);

4. Easily identifiable boundaries;

5. Compact (do not bypass one group of people to get to a more distant group of people);

6. Shall not favor or discriminate against a political party.

The City held the following public hearings and public meetings to enable community members to provide input on the drawing of district maps and to discuss criteria*:

Tuesday, May 4, 2021 at 6:00 p.m.

Tuesday, July 20, 2021 at 6:00 p.m.

Tuesday, November 2, 2021 at 6:00 p.m.
*Tuesday, December 7, 2022 at 7:00 p.m.

Tuesday, January 18, 2022 at 6:15 p.m.

Tuesday, February 15, 2022 at 5:30 p.m.

At the February 15, 2022, Council selected Public Maps 204, 206 and NDC Map 301, of which they directed NDC to edit, in order to obtain a third district above 60 HCVAP, if possible.

These maps are being presented for consideration and possible selection of a final map adjusting the boundaries of City Council Election Districts.

STAFF RECOMMENDATION:

CITY ATTORNEY REVIEW/COMMENTS: ☒Yes ☐N/A
IS ADDITIONAL (NON-BUDGETED) FUNDING REQUIRED: ☐Yes ☒No ☐N/A FUNDING SOURCE/ACCOUNT NUMBER:

N/A
Submitted by: Melissa Hermann Title: Chief Deputy City Clerk Ken Chawkins, National Demographics Corp., LLC
Date: March 2, 2022 City Manager Approval: ____________

Category Field 1 2 3 4 5 Total
Total Population 14,221 13,357 13,622 13,915 14,085 69,200 Population Deviation 381 -483 -218 75 245 864
Pct. Deviation 2.75% -3.49% -1.58% 0.54% 1.77% 6.24%
Hispanic/Latino 82% 72% 64% 44% 54% 63%
NH White 12% 20% 28% 45% 36% 28%
NH Black 3% 3% 4% 3% 3% 3%
NH Asian/Pac.Isl. 2% 3% 3% 6% 5% 4%
NH Native Amer. 1% 1% 1% 2% 2% 1%
Total 5,826 6,486 6,820 8,550 6,673 34,354
Hisp 67% 60% 60% 33% 46% 52%
NH White 23% 32% 34% 57% 47% 40%
NH Black 9% 3% 3% 6% 1% 4%
Asian/Pac.Isl. 2% 6% 3% 4% 6% 4%
Native Amer. 1% 1% 2% 1% 4% 2%
Total 4,167 5,515 5,716 7,834 6,564 29,796
Latino est. 67% 61% 53% 36% 45% 50%
Spanish-Surnamed 63% 56% 49% 33% 41% 46%
Asian-Surnamed 0% 1% 1% 3% 2% 2%
Filipino-Surnamed 1% 1% 2% 2% 2% 2%
NH White est. 25% 37% 42% 57% 53% 45%
NH Black 6% 3% 3% 4% 1% 3%
Total 2,399 3,671 4,027 6,211 4,977 21,285
Latino est. 63% 55% 50% 32% 40% 45%
Spanish-Surnamed 60% 51% 47% 30% 37% 42%
Asian-Surnamed 0% 1% 1% 3% 2% 2%
Filipino-Surnamed 1% 1% 2% 2% 2% 2%
NH White est. 27% 41% 45% 60% 57% 49%
NH Black 5% 3% 3% 4% 1% 3%
Total 1,435 2,248 2,278 4,253 3,039 13,253
Latino est. 60% 51% 45% 27% 35% 39%
Spanish-Surnamed 58% 48% 42% 25% 33% 37%
Asian-Surnamed 0% 1% 1% 2% 2% 2%
Filipino-Surnamed 1% 1% 2% 3% 2% 2%
NH White est. 30% 44% 48% 64% 61% 53%
NH Black est. 5% 3% 3% 4% 1% 3%
age0-19 40% 38% 37% 33% 34% 36%
age20-60 51% 52% 52% 48% 50% 51%
age60plus 9% 10% 10% 19% 16% 13%
immigrants 27% 22% 18% 12% 15% 19%
naturalized 18% 31% 33% 49% 50% 32%
english 41% 45% 51% 76% 63% 55%
spanish 58% 49% 45% 20% 33% 41%
asian-lang 0% 2% 0% 1% 1% 1%
other lang 1% 4% 3% 3% 4% 3%
Language Fluency Speaks Eng. "Less than
Very Well" 39% 28% 26% 11% 14% 24%
hs-grad 50% 58% 56% 60% 55% 56%
bachelor 3% 7% 7% 13% 8% 8%
graduatedegree 1% 2% 1% 5% 4% 3%
Child in Household child-under18 54% 58% 54% 43% 43% 50% Pct of Pop. Age 16+ employed 57% 63% 61% 60% 62% 61%
income 0-25k 37% 19% 20% 13% 15% 20%
income 25-50k 32% 27% 32% 18% 23% 26%
income 50-75k 14% 23% 19% 20% 23% 20%
income 75-200k 17% 29% 28% 42% 37% 31%
income 200k-plus 0% 2% 1% 7% 2% 3%
single family 76% 88% 85% 86% 90% 85%
multi-family 24% 12% 15% 14% 10% 15%
rented 66% 36% 50% 34% 37% 44%
owned 34% 64% 50% 66% 63% 56%
Household Income
Education (among those
age 25+)
Immigration
Age
Language spoken at
home
City of Tulare - NDC 301b
2020 Census
Total Pop.

Citizen Voting Age Pop
Housing Stats
Voter Registration (Nov
2020)
Voter Turnout (Nov
2020)
Total population data from California's adjusted 2020 Census data. Citizen Voting Age Population, Age, Immigration, and other demographics from the 2015-2019 American Community Survey and Special Tabulation 5-year data. Turnout and Registration data from California Statewide Database ("Latino" figures calculated by NDC using Census Bureau's Latino undercount by surname estimate).

Voter Turnout (Nov
2018)

RESOLUTION 2022-07

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TULARE, CALIFORNIA

APPROVING THE BY-DISTRICT ELECTIONS, ADJUSTING THE BOUNDARIES OF CITY COUNCIL ELECTION DISTRICTS FOLLOWING THE 2020 FEDERAL CENSUS

AND CONFIRMING SUCH COUNCIL DISTRICT BOUNDARIES MAP

WHEREAS, the City Council must adjust city council district boundaries every ten years using decennial census data so that the districts remain substantially equal in population as required by the United States Constitution – a process commonly known as redistricting; and,
WHEREAS, the 2020 Census data shows that the City of Tulare’s current districts are not population balanced, with a deviation between District 5 (the most populated district) and District 2 (the least populated district) of nearly 33.88%. Based on this deviation, the City must adjust its district boundary lines by adopting a final district map by an ordinance or resolution, pursuant to California Elections Code Section 21602, before the statutory deadline of April 17, 2022; and, WHEREAS, the City Council has held five public hearings between May 4, 2021 and February 15, 2022, to review map submissions from members of the public, National Demographics Corp., LLC and the Council two-member ad hoc committee; and,
WHEREAS, on February 15, 2022, the Council, at its most recent redistricting public hearing reviewed and selected Public Maps 204, 206 and NDC Map 301, of which NDC was asked to edit 301, in order to obtain a third district above 60% HCVAP, if possible, for consideration at the March 15, 2022, Public Hearing to consider a map for final adoption; and,
WHEREAS, City Council having deliberated and receiving public input desires to adopt updated City Council district maps to ensure that they comply with the law and has made a selection of the ______________ as the final City Council Election Boundaries map.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Tulare, as follows, to wit:

Section 1. The City Council hereby approve the revised City Council Election Boundaries Map identified as ______________ attached as Exhibit A to this resolution, as the official District Map for City Council elections in the City of Tulare.

Section 2. City staff, in conjunction with the Demographer, are hereby authorized and directed with work with the Tulare County Elections Office/Registrar of Voters who shall prepare all election ballots consistent with the attached map to conduct any additional acts RESOLUTION 2022-07 Page 2
necessary to complete the redistricting process in a timely manner to permit implementation of these adopted council districts for the election to be held November 8, 2022.

Section 3. The City Council Districts specified in Exhibit A shall remain in effect until modified.

Section 4. This Resolution and its Exhibit shall be published and available on the City website for as long as the City Council Districts approved by this resolution are in effect.

PASSED, APPROVED, AND ADOPTED this 15th day of March, 2022.

President of the Council and Ex-Officio
Mayor of the City of Tulare
RESOLUTION 2022-07 Page 3
ATTEST:

STATE OF CALIFORNIA )
COUNTY OF TULARE ) ss.

CITY OF TULARE )
I, Marc Mondell, City Clerk of the City of Tulare, do hereby certify the foregoing is the full and true Resolution 2022-07 passed and adopted by the Council of said city at a regular meeting held on March 15, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINING:

Marc Mondell, City Clerk
By: Melissa Hermann, Chief Deputy City Clerk
8419

ACTION MINUTES OF TULARE

CITY COUNCIL, CITY OF TULARE
February 24, 2022
A Special Joint Session of the City Council, Board of Public Utilities, Planning Commission, and Parks and Recreation Commission was held on Thursday, February 24, 2022, at 1:00 p.m. in the Tulare Public Library & Council Chamber, 491 North M Street.

COUNCIL PRESENT: Dennis A. Mederos, Terry A. Sayre, Jose Sigala, Stephen C.

Harrell, Patrick Isherwood
BOARD OF PUBLIC UTILITIES PRESENT: Ray Fonseca, Renee Soto, Tony Sozinho PLANNING COMMISSION PRESENT: Chuck Miguel, Sandi Miller, Chad Petersen, Jorge Diaz
PARKS AND RECREATION COMMISSION PRESENT: Mike Jamaica, Craig Hancock, Armando Da Silva (no quorum present)
STAFF PRESENT: Marc Mondell, Megan Dodd, Trisha Whitfield, Tim Doyle, Andrew Bettencourt, Darlene Thompson, Fred Ynclan, Doyle Sewell, Janice Avila, Traci Myers, Mario, Michael Miller, Brian Beck, Jason Bowling, Jose Rivas, Nick Bartsch, Ivan Nicar, Jason Glick, Stephen Sopp, Melissa Hermann

CALL TO ORDER SPECIAL JOINT SESSION
Mayor Mederos called to order the Special Joint Session at 1:15 p.m.

WELCOME AND INTRODUCTIONS BY MAYOR
Mayor Mederos led the Pledge of Allegiance and introductions were made by the advisory body members that were present.

CITIZEN COMMENTS - Comments from the public are limited to items listed on the agenda (GC 54954.3a). Speakers will be allowed three minutes. Please begin your comments by stating and spelling your name and providing your city of residence.

Donnette Silva-Carter, Tulare Chamber of Commerce CEO, called to express her gratitude for members serving on advisory bodies and announced that a new micro grant has become available.

OPENING COMMENTS BY CITY MANAGER
Opening comments were provided by City Manager Marc Mondell. 8420

PRESENTATION ON ARPA FUNDED PROJECTS AND CITY VISION BY CITY

MANAGER
City Manager Marc Mondell provided an update on the ARPA funded projects as well as shared his vision for the City.

PRESENTATION ON 2022 WORK PLAN
• Information regarding board responsibilities, adopted budget, current and future challenges and opportunities, and projects and initiatives may be shared o City Council
o Board of Public Utilities
o Planning Commission
o Parks and Recreation Commission
Board of Public Utilities Commissioner Renee Soto, Planning Commissioner Chuck Miguel, and Parks and Recreation Commissioner Craig Hancock provided presentations for their respective commissions.

ROUNDTABLE DISCUSSION
Questions posed by Council were responded to by commissioners and staff.

CLOSING REMARKS

ADJOURNMENT
Mayor Mederos adjourned the Special Joint Session at 3:59 p.m.

President of the Council and Ex-Officio
Mayor of the City of Tulare
ATTEST:
_________________________________
Chief Deputy City Clerk and Clerk of the
Council of the City of Tulare
8421

ACTION MINUTES OF TULARE

CITY COUNCIL, CITY OF TULARE
March 1, 2022
A Closed Session of the City Council, City of Tulare was held on Tuesday, March 1, 2022, at 6:00 p.m. in the Tulare Public Library & Council Chambers, 491 North M Street.

COUNCIL PRESENT: Dennis A. Mederos, Terry Sayre, Jose Sigala, Stephen C.

Harrell
COUNCIL ABSENT: Patrick Isherwood
STAFF PRESENT: Marc Mondell, Mario Zamora(via Zoom), Josh McDonnell, Mandy Jeffcoach (Special Council), Fred Ynclan, Jason Bowling, Jose Rivas, Melissa Hermann, Roxanne Yoder
I. CALL TO ORDER CLOSED SESSION
Mayor Mederos called closed session to order at 6:02 p.m.

There were no public comments.

III. ADJOURN TO CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION(S):

Mayor Mederos adjourned to closed session for the item noted at 6:02 p.m. a. 54956.9(d)(1) Conference with Legal Counsel – Existing Litigation (1) Name of Case: City of Tulare v. Del Lago Place, TCSC Case No. 286863 [Submitted by: M. Jeffcoach]
IV. RECONVENE CLOSED SESSION
Mayor Mederos reconvened from closed session at 6:38 p.m.

V. CLOSED SESSION REPORT (if any)
Mayor Mederos advised there was no reportable action.

VI. ADJOURN CLOSED SESSION
Mayor Mederos adjourned closed session at 6:39 p.m.
8422
A Special Session of the City Council, City of Tulare was held on Tuesday, March 1, 2022, at 6:30 p.m. in the Tulare Public Library & Council Chambers, 491 North M Street.

COUNCIL PRESENT: Dennis A. Mederos, Terry A. Sayre, Jose Sigala, Stephen C.

Harrell, Patrick Isherwood(7:14 p.m.)
STAFF PRESENT: Marc Mondell, Mario Zamora, Josh McDonnell, Fred Ynclan, Doyle Sewell, Janice Avila, Michael Miller, Darlene Thompson, Trisha Whitfield, Brian Beck, Jason Bowling, Jose Rivas, Nick Bartsch, Roxanne Yoder
VII. CALL TO ORDER SPECIAL SESSION
Mayor Mederos called the special session to order at 6:39 p.m.

VIII. CITIZEN COMMENTS - Comments from the public are limited to items listed on the agenda (GC 54954.3a). Speakers will be allowed three minutes. Please begin your comments by stating and spelling your name and providing your city of residence.

There were no public comments.

IX. BOARDS, COMMISSIONS AND COMMITTEE APPOINTMENTS
(1) Review and appoint members to fill vacancies on City boards, commissions, and committees. [Submitted by: M. Hermann] Deputy City Clerk/Records Coordinator Melissa Hermann provided a brief report for the Council’s review and consideration.

Aviation Committee: It was moved by Mayor Mederos, seconded by Council Member Sigala, and carried 4 to 0 (Council Member Isherwood absent) to appoint Cris Colson.

Committee on Aging: It was moved by Council Member Sigala, seconded by Council Member Harrell, and carried 4 to 0 (Council Member Isherwood absent) to appoint Jevon Price.

Parks and Recreation Commission: It was moved by Council Member Harrell, seconded by Council Member Sigala, and carried 4 to 0 (Council Member Isherwood absent) to appoint Manuel Caceres.

Police Department Citizen Complaint Review Board: It was moved by Council Member Sigala, seconded by Mayor Mederos and carried 4 to 0 (Council Member Isherwood absent) to appoint Jennifer Burcham.

It was further moved by Vice Mayor Sayre, seconded by Council Member Sigala and carried 4 to 0 (Council Member Isherwood absent) to appoint Julie Leighty. 8423
Lastly, it was moved by Mayor Mederos, seconded by Council Member Harrell and carried 3 to 1 to 0 (Council Member Sigala abstained; Council Member Isherwood absent) to appoint Danny Giotto.

X. ADJOURN CLOSED SESSION
Mayor Mederos adjourned special session at 6:56 p.m.

A Regular Session of the City Council, City of Tulare was held on Tuesday, March 15, 2022, at 7:00 p.m. in the Tulare Public Library & Council Chambers, 491 North M Street.

COUNCIL PRESENT: Dennis A. Mederos, Terry A. Sayre, Jose Sigala, Stephen C.

Harrell, Patrick Isherwood
STAFF PRESENT: Marc Mondell, Mario Zamora, Josh McDonnell, Fred Ynclan, Doyle Sewell, Janice Avila, Traci Myers, Michael Miller, Darlene Thompson, Trisha Whitfield, Brian Beck, Jason Bowling, Jose Rivas, Nick Bartsch, Alexis Costales, Roxanne Yoder, Melissa Hermann
XI. CALL TO ORDER REGULAR SESSION
Mayor Mederos called the Regular Session to order at 7:07 p.m.

XII. PLEDGE OF ALLEGIANCE AND INVOCATION
Council Member Sigala led the Pledge of Allegiance and an invocation was led by Pastor Russ Siders.

XIII. CITIZEN COMMENTS
Mayor Mederos requested those who wish to speak on matters not on the agenda within the jurisdiction of the Council, or to address or request a matter be pulled from the Consent Calendar to do so at this time. He further stated comments related to General Business matters would be heard at the time that matter is addressed on the agenda.

Donnette Silva-Carter, Tulare Chamber CEO, addressed the Council on Chamber activities.

Josh Ryan and Eric Ferreira addressed the Council regarding the 4x4x48 event to raise money for Happy Trails Riding Academy.

Joe Gonzalez addressed the Council with concerns on privatizing sweet sweeper functions.

Vickie Gilson addressed the Council complimenting the City on the solid waste voucher program.
8424
XIV. COMMUNICATIONS
There were no items for this section of the agenda.

XV. CONSENT CALENDAR
It was moved by Council Member Harrell, seconded by Council Member Sigala, and unanimously carried that the items on the Consent Calendar be approved as presented.
(1) Authorization to read ordinances by title only.
(2) Approve minutes of February 15, 2022 special/regular meeting(s). [Submitted by: R. Yoder]
(3) Authorize the City Manager to sign a contract with Peters Engineering Group of Clovis, CA in an amount not to exceed $54,000 for preparation of a Local Road Safety Plan. [Submitted by: M. Miller]
(4) Approve the final map for the Oak Creek No. 4 subdivision for recordation, and accept all easements and dedications offered to the City on the final map. [Submitted by: M. Miller]
(5) Authorize the City Manager to execute a preliminary oversized construction reimbursement agreement with Orchard Square 79, LLC that identifies estimated construction costs associated with improvements required for the Orchard 79 subdivision that will be eligible for reimbursement in accordance with Chapter 8.64 of the Municipal Code, subject only to minor conforming and clarifying changes acceptable to the City Attorney and City Manager. [Submitted by: M. Miller]
(6) Receive the monthly investment report for January 2022. [Submitted by: D.

Thompson]
(7) Adopt Resolution 2022-06 accepting receipt of FY21 State Homeland Security Grant Program (SHSGP) from DHS in the amount of $38,844; authorize an appropriation to purchase thirteen (13) tablet computers including software and vehicle mounting. [Submitted by: C. Long] XVI. SCHEDULED PRESENTATIONS
(1) Scheduled Presentations Engineering Project Management Capital Improvement Project Update. This item was presented at the end of Scheduled Presentations following a recess from 8:00 p.m. to 8:15 p.m. Senior Project Manager Nick Bartsch provided a presentation. Rick Helgeson of CalTrans also provided a presentation.
(2) Proclamation declaring March 2022 as International Women’s Day & Women’s History Month. Mayor Mederos read into the record the 8425
proclamation. It was moved by Vice Mayor Sayre, seconded by Council Member Harrell and unanimously carried to approve the proclamation, as presented.

Mayor Mederos presented retiring Chief Deputy City Clerk Roxanne Yoder with the proclamation and a plaque in honor of her retirement. (3) Presentation to Women Honorees in recognition of International Women’s Day & Women’s History Month 2022. Council Member Sigala recognized Darlene Thompson. Vice Mayor Sayre recognized Shea Gowin. Council Member Harrell recognized Opal Holland. Mayor Mederos recognized Karen Bravo.

Council Member Isherwood recognized Sarah Enriquez.

Following the honoree presentations, Farmersville City Manager Jennifer Gomez, Exeter City Clerk Shonna Oneal and Tulare Deputy City Clerk Melissa Hermann, with help from Visalia Chief Deputy City Clerk Michelle Nicholson (not in attendance) presented Chief Deputy City Clerk Roxanne Yoder with a plaque in honor of her retirement and contributions in mentoring area municipal leaders.

XVII. MAYOR/COUNCIL REPORTS OR ITEMS OF INTEREST – G.C. 54954.2(c) XVIII. GENERAL BUSINESS
Comments related to General Business items are limited to three minutes per speaker, for a maximum of 30 minutes per item, unless otherwise extended by the Council.
(1) Public Hearing:
a. Public Hearing to adopt Resolution 2022-07 approving the By-District Elections, adjusting the boundaries of City Council Election Districts following the 2020 Federal Census and confirming such Council District Boundaries map. [Submitted by: National Demographics, Corp.] Mayor Mederos opened the public hearing at 9:06 p.m. Alma Serrano questioned if maps were still being accepted which Mayor Mederos stated draft maps are no longer being accepted. Receiving no other public comments, Mayor Mederos closed the public comment portion of the public hearing at 9:07 p.m.

Following discussion, it was moved by Council Member Isherwood, seconded by Vice Mayor Sayre, and unanimously carried to continue the public hearing to March 15, 2022, at 6:00 p.m.
(2) Community Development:
a. Adopt Resolution 2022-08 authorizing the City of Tulare to apply to the State of California Department of Housing and Community Development for HOME Investment Partnerships Program (“HOME”) funds not to exceed $7,150,000 to provide project financing which will be used to construct Santa Fe Commons II, a 57 unit rental project, located in the city of Tulare at 537 N. West Street. [Submitted by: T. Myers] Council Member Isherwood stated a conflict of interest due to working for Self-Help 8426
and recused himself and left the dais. Housing and Grants Specialist Alexis Costales provided a report for the Council’s consideration. Miguel Arambula of Self-Help Enterprises provided additional information. It was moved by Council Member Sigala, seconded by Vice Mayor Sayre, and carried 4 to 0 (Council Member Isherwood recused) to adopt Resolution 2022-08 as presented.
(3) Engineering:
a. Presentation of design options to revise the striping on Mooney Boulevard between Kern Avenue and Tulare Avenue to improve traffic safety, and subsequent selection of a preferred project alternative. [Submitted by: M. Miller] City Engineer Michael Miller provided a presentation for the Council’s consideration. Following discussion, it was moved by Council Member Isherwood, seconded by Council Member Harrell, and unanimously carried to direct staff to move forward with Alternative 3.

XIX. STAFF UPDATES AND FUTURE AGENDA ITEMS – G.C. 54954.2(c) Council Member Sigala requested additional information regarding the possibility of privatizing street sweeping services. Consensus was not received.

XX. ADJOURN REGULAR SESSION
Mayor Mederos adjourned the regular session at 9:52 p.m.

President of the Council and Ex-Officio
Mayor of the City of Tulare
ATTEST:
_________________________________
Chief Deputy City Clerk and Clerk of the
Council of the City of Tulare

CITY OF TULARE

AGENDA ITEM TRANSMITTAL SHEET
Submitting Department: City Manager
For Council Meeting of: March 15, 2022
Documents Attached: ☐Ordinance ☐Resolution ☒Other ☐None AGENDA ITEM:

Confirm Council Member Harrell’s appointment of Jocelyn Correa to the Planning Commission with a term ending December 31, 2025.

IS PUBLIC HEARING REQUIRED: ☐Yes ☒No
BACKGROUND/EXPLANATION:

The City of Tulare has eight boards, commissions, and committees in addition to the City Council. From time to time, appointments and reappointments are necessary due to vacancies and expiring terms.

On February 27, 2022, Anthony Olivares resigned from the Planning Commission. Planning Commissioners are appointed by each seat of the Council. Mr. Olivares was appointed by Council Seat 3.

Council Member Harrell informed staff of his desire to appoint Jocelyn Correa to fill the current vacancy.

STAFF RECOMMENDATION:

Confirm Council Member Harrell’s appointment of Jocelyn Correa to the Planning Commission with a term ending December 31, 2025.

CITY ATTORNEY REVIEW/COMMENTS: ☐Yes ☒N/A
IS ADDITIONAL (NON-BUDGETED) FUNDING REQUIRED: ☐Yes ☐No ☒N/A FUNDING SOURCE/ACCOUNT NUMBER:

N/A
Submitted by: Melissa Hermann Title: Chief Deputy City Clerk Date: March 9, 2022 City Manager Approval: ____________ AGENDA ITEM: Consent 3

CITY OF TULARE

AGENDA ITEM TRANSMITTAL SHEET
Submitting Department: Community & Economic Development For Council Meeting of: March 15, 2022
Documents Attached: ☐ Ordinance ☐ Resolution ☒ Other ☐ None AGENDA ITEM:

Authorize the City Manager to sign a contract with QK, Inc. of Visalia, CA in an amount not to exceed $282,466 for professional consulting services associated with the comprehensive update of the City of Tulare Zoning Code.

IS PUBLIC HEARING REQUIRED: ☐ Yes ☒ No
BACKGROUND/EXPLANATION:

In the 2019-20 Budget Act, Governor Gavin Newsom allocated $250 million for all regions, cities, and counties to prioritize planning activities that accelerate housing production to meet identified needs of every community. With this allocation, The California Department of Housing and Community Development (HCD) established the Local Early Action Planning Grant Program (LEAP) with $119 million for cities and counties. LEAP provides one-time grant funding to cities and counties to update their planning documents and implement process improvements that will facilitate the acceleration of housing production and help local governments prepare for their 6th cycle Regional Housing Needs Assessment (RHNA).

STAFF RECOMMENDATION:

CITY ATTORNEY REVIEW/COMMENTS: ☒ Yes ☐ N/A
AGENDA ITEM: Consent 4
IS ADDITIONAL (NON-BUDGETED) FUNDING REQUIRED: ☐ Yes ☐ No ☒ N/A FUNDING SOURCE/ACCOUNT NUMBER:

TBD
Submitted by: Mario Anaya Title: Principal Planner
Date: March 7, 2022 City Manager Approval: ____________ Professional Services Agreement – Zoning Code Update Consulting Services – QK December, 2021

PROFESSIONAL SERVICES AGREEMENT

ZONING CODE UPDATE CONSULTING SERVICES
This Professional Services Agreement (“Agreement”) entered into this day of 2021, by and between QK (“CONSULTANT”), and the City of Tulare (“CITY”).

WITNESSETH
WHEREAS, the CITY is authorized and empowered to employ consultants and specialists in the performance of its duties and functions; and WHEREAS, the CITY has the desire to secure certain technical and professional services to assist in the preparation and completion of the items of work described in the Zoning Code Update Consulting Services Proposal attached hereto as Exhibit “A”, and hereinafter referred to as the "PROJECT"; and
WHEREAS, the CONSULTANT represents it is qualified and willing to provide such services pursuant to terms and conditions of this Agreement:

NOW, THEREFORE, BE IT AGREED, by and between the CONSULTANT and the CITY as follows:

1. SERVICES TO BE PERFORMED BY THE CONSULTANT
A. Authorized Scope of Work
The CITY agrees to pay for services described in Exhibit "A" – Zoning Code Update Consulting Services Proposal - attached hereto and incorporated herein by this reference.

B. Additional Services
Incidental work related to the PROJECT and not provided for in Exhibit "A" may be needed during the performance of this Agreement. The rate for such additional service shall be “on call” services and based upon an hourly rate as set forth on CONSULTANT’S 2021 compensation rates. Such additional services shall not be performed by CONSULTANT without the express written consent of CITY.

Professional Services Agreement – Zoning Code Update Consulting Services – QK December, 2021

2. COMPENSATION
A. Total Compensation
CONSULTANT agrees to perform the services as described in Exhibit “B” – Fee Proposal & Compensation Rates - for a not-to-exceed fee of $282,466. Any additional services other than those provided for in Exhibit “A” would be performed on an “on-call” basis and these additional services will be billed on an hourly rate based upon CONSULTANT’S 2021 compensation rates.

B. Invoicing & Payment
As sole compensation for the performance of the services, the City will pay Consultant a consulting rate for each service classified as provided for in Exhibit “B” attached hereto. Any expenses incurred by Consultant in performing the services will be the sole responsibility of Consultant unless other arrangements are made before such expenses are incurred. Consultant will invoice the City on a monthly basis. The City will pay each such invoice no later than thirty (30) days after its receipt.

3. AUTHORIZED REPRESENTATIVE
The Community & Economic Development Director, Traci Myers, or her Designee shall represent the CITY in all matters pertaining to the services to be rendered under this Agreement, except where approval of the City Council of the City of Tulare is specifically required.

4. TERMINATION
The CITY or the CONSULTANT may terminate this Agreement at any time by giving written notice of such termination and specifying the effective date thereof, at least fifteen (15) days before the effective date of such termination. In such event, all finished and unfinished documents and other materials shall, at the option of the CITY, become its property. If this Agreement is terminated by the CITY as provided for herein, the CONSULTANT shall be paid for the tasks (as set forth in Exhibit “B”) satisfactorily completed prior to the date of termination, and in the amounts set forth herein, including CONSULTANT'S reasonable costs associated with the termination itself if termination effectuated by CITY, less deduction, if any, to the CITY for damages suffered as a result of the CONSULTANT'S failure to comply with the terms of this Agreement, if such is the case or cause of termination.

Professional Services Agreement – Zoning Code Update Consulting Services – QK December, 2021

5. INTEREST OF OFFICIALS AND THE CONSULTANT
A. No officer, member, or employee of the CITY or another public official of the governing body of the locality or localities in which the work, pursuant to this Agreement is being carried out, who exercises any functions or responsibilities in the review or approval of the undertaking or carrying out of the aforesaid work shall:

1. Participate in any decision relating to this Agreement which effects his or her personal interest or the interest of any corporation, partnership, or association in which he or she has, directly or indirectly, any interest; or

2. Have any interest, direct or indirect, in this Agreement or the proceeds thereof during his or her tenure or for one year thereafter.

B. The CONSULTANT hereby covenants that he has, at the time of the execution of this Agreement, no interest, and that he shall not acquire any interest in the future, direct or indirect, which would conflict in any manner or degree with the performance of services required to be performed pursuant to this Agreement.

The CONSULTANT further covenants that in the performance of this work, no person having such interest shall be employed.

The CONSULTANT warrants, by execution of this Agreement, that no personnel agency has been employed or retained to solicit or secure this contract upon an agreement or understanding for a commission, percentage, brokerage or contingent fee, excepting bonafide established commercial or selling agencies maintained by the CONSULTANT for the purpose of securing business. For breach or violation of this warrant, the CITY shall have the right to annul this Agreement without liability or, in its discretion, to deduct from this Agreement without liability, or, in its discretion, to deduct from this Agreement price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift, or contingent fee.

6. SUCCESSORS AND ASSIGNS
This Agreement shall be binding upon and shall inure to the benefit of any successors to or assigns of the parties. The CONSULTANT shall not assign, delegate or transfer the rights and duties under this Agreement or any part thereof, without the prior written consent of the CITY.

7. INDEPENDENT CONTRACTOR
In the performance of the services herein provided for, the CONSULTANT shall be, and is, an independent contractor and is not an agent or employee of the CITY. The CONSULTANT has and shall retain the right to exercise full control and supervision of Professional Services Agreement – Zoning Code Update Consulting Services – QK December, 2021
all persons assisting the CONSULTANT in the performance of said services hereunder.

The CONSULTANT shall be solely responsible for all matters relating to the payment of its employees including compliance with social security and income tax withholding and all other regulations governing such matters.

8. SPECIFICATIONS
All specifications, manuals, standards, etc., either attached to this Agreement or incorporated by reference, are binding as to the performance of the work specified in this Agreement unless they are changed by written amendment to this Agreement modified in writing to incorporate such changes.

9. PUBLICATION
No report, information, or other date given or prepared or assembled by the CONSULTANT pursuant to this Agreement, shall be made available to any individual or organization by the CONSULTANT without the prior written approval of the CITY.

Notwithstanding the foregoing, however, the CONSULTANT shall not be required to protect to hold in confidence any confidential information which (1) is or becomes available to the public with the prior written consent of the CITY; (2) must be disclosed to comply with law; or (3) must be disclosed in connection with any legal proceedings.

10. COPYRIGHTS
The CONSULTANT shall be free to copyright material developed under this Agreement with the provision that the CITY be given a nonexclusive and irrevocable license to reproduce, publish or otherwise use, and to authorize others to use the material for government or public purposes.

11. INDEMNIFICATION AND INSURANCE
A. As respects acts, errors or omissions in the performance of professional services, CONSULTANT agrees to indemnify and hold harmless the CITY, its officers, employees, and the CITY’S designated volunteers from and against any and all claims, demands, defense costs, liability or consequential damages of any kind or nature arising directly out of CONSULTANT'S negligent acts, errors or omissions in the performance of his/her professional services under the terms of this contract.

As respects all acts or omissions which do not arise directly out of the performance of professional services, including but not limited to those acts or omissions normally covered by general and automobile liability insurance, CONSULTANT agrees to indemnify, defend (at the CITY’s option), and hold harmless CITY, its employees, agents, representatives, and volunteers from and against any and all claims, demands, defense costs, liability, or consequential Professional Services Agreement – Zoning Code Update Consulting Services – QK December, 2021
damages of any kind or nature caused in whole or in part by any negligent act or omission of the CONSULTANT, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, except where caused by the active negligence, sole negligence, or willful misconduct of the CITY.

B. Without limiting the CITY’s right to indemnification, it is agreed that CONSULTANT shall secure prior to commencing any activities under this Agreement, and maintain during the term of this Agreement, insurance coverage as follows:
i. Workers’ Compensation Insurance with statutory limits, and employer’s liability insurance with limits of not less than One Million Dollars ($1,000,000) per accident.
ii. Commercial General Liability Insurance, including coverage for Premises and Operations, Contractual Liability, Personal Injury Liability, Broad Form Property Damage (if applicable), Independent Contractors' Liability (if applicable), in an amount of not less than One Million Dollars ($1,000,000.00) per occurrence, combined single limit, written on an occurrence form.
iii. Professional Liability Insurance coverage, including contractual liability, in an amount not less than One Million Dollars ($1,000,000), and CONSULTANT shall maintain such coverage for at least four (4) years from the termination of this Agreement; and during this four (4) year period, CONSULTANT shall use CONSULTANT’S best efforts to ensure that there is no change of the retroactive date on this insurance coverage. iv. Comprehensive Auto Liability coverage, including (as applicable) owned, non-owned and hired autos in an amount of not less than One Million Dollars ($1,000,000) per occurrence, combined single limit, written on an occurrence form.

C. Each insurance policy required by this Agreement shall contain the following clauses:
“This insurance shall not be canceled, limited in scope or coverage, or non-renewed until after thirty (30) days prior written notice has been given to the City Manager.
“It is agreed that any insurance maintained by the CITY shall apply in excess of and not contribute with insurance provided by this policy.” Each insurance policy required by this Agreement, excepting policies for workers' compensation and professional liability, shall contain the following clause:

Professional Services Agreement – Zoning Code Update Consulting Services – QK December, 2021
“The City, its officers, agents, employees, representatives and volunteers are added as additional insureds as respects operations and activities of, or on behalf of, the named insured, performed under contract with the City.” D. Upon CITY's request or immediately prior to initiation of any work under this contract, (whichever comes first), CONSULTANT shall deliver to the CITY insurance certificates confirming the existence of the insurance required by this Agreement, and including the applicable clauses referenced above. Also, within thirty (30) days of CITY'S request, CONSULTANT shall provide to the CITY endorsements to the above-required policies, which add to these policies the applicable clauses referenced above. Said endorsements shall be signed by an authorized representative of the insurance company and shall include the signatory's company affiliation and title. Should it be deemed necessary by the CITY, it shall be CONSULTANT'S responsibility to see that the CITY receives documentation acceptable to the CITY which sustains that the individual signing said endorsements is indeed authorized to do so by the insurance company. Also, the CITY has the right to demand, and to receive within a reasonable time period, copies of any insurance policies required under this Agreement.

E. In addition to any other remedies, the CITY may have if CONSULTANT fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, the CITY may, at is sole option:

1. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under the Agreement;

2. Order CONSULTANT to stop work under this Agreement and/or withhold any payment(s) which become due to CONSULTANT hereunder until CONSULTANT demonstrates compliance with the requirements hereof.

3. Terminate this Agreement.

Exercise of any of the above remedies, however, is an alternative to other remedies the CITY may have and is not the exclusive remedy for CONSULTANT'S failure to maintain insurance or secure appropriate endorsements.

Nothing herein contained shall be construed as limiting in any way the extent to which CONSULTANT may be held responsible for payments of damages to persons or property resulting from CONSULTANT'S or its subcontractor's performance of the work covered under this Agreement.

Professional Services Agreement – Zoning Code Update Consulting Services – QK December, 2021

12. OWNERSHIP OF DOCUMENTS
All original papers and documents, produced as a result of this Agreement, shall become the property of the CITY. In addition, CITY shall be provided with access and use of any other papers and documents consistent with the purpose and scope of services covered by this Agreement. Any additional copies, not otherwise provided for herein, shall be the responsibility of the CITY.

13. NOTICES
Notice shall be sufficient hereunder if personally served upon the City Manager of the CITY or an officer or principal of the CONSULTANT, or if sent via the United States Postal Service, postage prepaid, addressed as follows:

City of Tulare
Roxanne Yoder
Deputy City Clerk
411 E. Kern Avenue
Consultant
QK
Steve Brandt, AICP, Principal Planner
901 East Main Street
Visalia, CA 93292 Tulare, CA 93274

14. JURISDICTION & CHOICE OF LAW
This Agreement shall be administered and interpreted under the laws of the State of California. Jurisdiction of litigation arising from this Agreement shall be venued in the State of California, Tulare County Superior Court. If any part of this Agreement is found to be in conflict with applicable laws, such part shall be inoperative, null and void insofar as it is in conflict with said law, but the remainder of the Agreement shall be in full force and effect.

15. INTEGRATION
This Agreement represents the entire understanding of the CITY and the CONSULTANT as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters covered hereunder. This Agreement may not be modified or altered except in writing signed by the CITY and the CONSULTANT.

16. MISCELLANEOUS PROVISIONS
A. CONSULTANT covenants that they presently has no interest, and shall not have any interest, direct or indirect, which would conflict in any manner with the performance of service required hereunder.

B. CONSULTANT will not discriminate against any employee, or applicant for employment, because of race, color, religion, sex, marital status, or national origin. CONSULTANT will take action to insure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, marital status, or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer, recruitment, or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship.

C. For the purposes of this agreement electronic signature facsimile shall be deemed the same as an original signature, and may be executed in multiple parts.

IN WITNESS WHEREOF, this Agreement is executed on the day and year first above written.

QK
By: ~~ DL~ ~'r
Amber Aguayo, CFO/C 0

CITY OF TULARE
By:----------
City Manager
APPROVED AS Tr;ORM
v\y\1,4,v- By: ------='-------
City Attorney
Professional Services Agreement - Zoning Code Update Consulting Services - QK December, 2021
Professional Services Agreement – Zoning Code Update Consulting Services – QK December, 2021

EXHIBIT A

QK ZONING CODE UPDATE CONSULTING SERVICES PROPOSAL

PROPOSAL
Comprehensive Zoning Code Update

CITY OF TULARE
QKinc.com | (559) 733-0440
August 6, 2021
City of Tulare
Community & Economic Development Department
411 E. Kern Avenue
Tulare, CA 93277
ATTN: Mario Anaya, AICP, Principal Planner
Subject: Request for Proposals: Comprehensive Zoning Code Update Mr. Anaya:

The City of Tulare wants to comprehensively update their Zoning Code so that it can be used as a tool to provide great customer services and attract desirable growth and development into the City. The update needs to incorporate new State requirements, Staff and Planning Commission recommended changes, as well as stakeholder recommendations. A well-designed Zoning Map and accompanying User Guide with graphics will make the City codes easier to understand and implement. Stakeholder meetings and Planning Commission workshops will allow the public to provide valuable input.

Thank you for the opportunity to provide this proposal for development and adoption of a Comprehensive Zoning Code Update for the City of Tulare. QK has a proven history with long range planning projects and ordinance preparation, and we have leveraged on that experience in preparing this proposal. Much of our planning work has been for similarly sized communities, and our team has substantial and pragmatic experience with coordinating effective community participation programs, which will be a key issue in the Zoning Code Update.

Our team includes professionals who use several zoning ordinances around the Valley every day. We know what works and what does not. We can help you develop a Code that is easy to understand and gets the type of development projects you want. We have learned that putting in the effort with staff up front, along with early community stakeholder input, makes for more productive public outreach, and ultimately a zoning code that is personalized for the City of Tulare.

Once again, thank you very much for the opportunity to provide this proposal. We are particularly proud of our longstanding history serving cities within Tulare County and look forward to continuing to serve you throughout this important project. Please feel free to contact me at (559) 733-0440, or at [email protected] if you have any questions or require further information.

With appreciation,
Steve Brandt, AICP Amber Aguayo
Principal Planner CFO/COO
Enclosure
P210581

CITY OF TULARE
Comprehensive Zoning Code Update
City of Tulare
Community & Economic Development Department
411 E. Kern Avenue
Tulare, CA 93277
ATTN: Mario Anaya, AICP, Principal Planner
August 6, 2021
P210581
© Copyright by Quad Knopf, Inc.

Unauthorized use prohibited
Proposal
901 East Main Street
Visalia, CA 93292
(559) 733-0440
Jump to Table of Contents
(800) 955-7599 | QKinc.com i
Proposal: City of Tulare Comprehensive Zoning Code Update Table of Contents

INTRODUCTORY LETTER
CONSULTANT BACKGROUND.......................................................................................................... 1 Technical Capabilities..........................................................................................................................................1 Subconsultants.....................................................................................................................................................2 PROJECT TEAM .............................................................................................................................. 3 Organizational Chart............................................................................................................................................3 INDIVIDUAL QUALIFICATIONS & EXPERIENCE ............................................................................... 4 Project Team Members.......................................................................................................................................4 Key Staff Resumes...............................................................................................................................................4 Relevant Project Experience............................................................................................................................ 12 STATEMENT OF UNDERSTANDING & SCOPE OF WORK ................................................................ 16 Project Understanding...................................................................................................................................... 16 Approach............................................................................................................................................................. 16 Scope of Work.................................................................................................................................................... 20 SCHEDULE .................................................................................................................................... 26 FEE PROPOSAL ............................................................................................................................ 27 (800) 955-7599 | QKinc.com 1
Consultant Background
Consultant Background
As contract city planners for several Tulare County and surrounding cities, our planning staff has the local knowledge and counter-planner experience required to deliver a zoning ordinance capable of serving the City of Tulare for many years to come.

Since 1972, QK has successfully partnered with cities,
counties, special districts, state agencies, and other public agencies to provide sustainable solutions to complex planning and infrastructure projects that have lasting positive impacts in our communities.

We offer our clients a broad range of programmatic
professional services including:
• Land Use Planning
• Environmental Planning & Permitting
• Landscape Architecture
(in-house support important for ZO update)
• Urban Design
(in-house support important for ZO update)
• Traffic Engineering
(in-house support important for ZO update)
• Biological Resources
• Construction Management
• Civil Engineering
• Utility Coordination
Technical Capabilities

PLANNING/LAND USE
QK’s expertise in land use and policy planning helps clients with complex projects and then proposes common sense
solutions. Our planning staff is accustomed to policy planning consulting services for both the public and private sectors.

Many of our staff have experience in public sector planning, working for cities and counties.

QK understands the significant task of guiding a project, plan, or study from concept to reality. Our policy plans promote efficient and sustainable land development, incorporate development and redevelopment patterns that optimize
existing infrastructure investments, and consume less land that can then remain available for agriculture, open space, and natural systems.

Our planning staff has a successful track record of leaders’ and residents’ support for their community’s plans. QK’s planners benefit our clients by understanding the interests of stakeholders and residents. Our experience includes:
• General Plan Updates
• Zoning Ordinances
• Master Planning
• Site Planning
• Specific Plans
• Community Plans
• Entitlement Review and Processing
• Development Agreements
• Design Guidelines and Development Standards
• LAFCo Annexations and Municipal Service Reviews/
Sphere of Influence Evaluations
• On-site and On-call Planning Department Support/
Extension of City Staff
QK has provided contract planning services to several Central Valley cities. Serving as an extension of City staff, our services have included interacting with the public, applicants, Planning Commissioners, and City Councilmembers. Because we
interpret and implement many different zoning ordinances on a daily basis, we can recognize a truly well-written zoning ordinance from those that may appear to be well-written but are actually difficult to interpret and apply to real-world situations.

Back to Table of Contents
(800) 955-7599 | QKinc.com 2
Consultant Background

PUBLIC OUTREACH/

STAKEHOLDER PARTICIPATION
After more than 49 years of helping clients build and live in the environments they’re dreaming of, we have learned that winning the imagination of the community and its leaders is as important as the project itself. A well written planning document approved with strong community support avoids
additional time and expense down the road by avoiding or lessening future revisions and amendments.

QK generates public awareness, understanding of, and
general consensus of key planning concerns. No one is better at aligning stakeholders behind a common set of interests. We help our clients get everyone on the same page. Our outreach experience includes:
• Task Force and Advisory Committee Meeting
Facilitation
• Stakeholder Interviews
• Public Participation Plans
• Walking Tours/Bus Tours
• Surveys/Questionnaire
• Public Open Houses
• Visioning Workshops
• Public Hearings

CEQA COMPLIANCE SERVICES
Our environmental planning team has been extensively
involved in the preparation of a wide variety of CEQA and NEPA documents that keep our client. Many of our environmental planners are former public-sector planners. Their experience has contributed to the decision-making process through the preparation of environmental findings and the formulation of recommendations. They are also skilled in collecting public opinion through outreach efforts, and adept at
making presentations to Planning Commissions, Boards of Supervisors, City Councils, and Special District Boards.

QK’s team of environmental planners are well versed in the preparation of the following:
• Environmental Impact Reports (EIRs)
• Negative Declarations
• Mitigated Negative Declarations
• Categorical Exemptions
• Environmental Impact Statements
• Environmental Assessments (EAs)/Findings of No
Significant Impacts (FONSI’s)
• Categorical Exclusions
• Mitigation Monitoring & Reporting Plans and
Programs
Subconsultants

LEGAL RESEARCH FOR SIGN REGULATIONS
David Weiland, Partner
Coleman & Horowitt, LLP
The regulation of signage has always been a challenge for cities, but it changed completely with the Supreme Court ruling in the case of Reed v. Gilbert (2015). Cities can no longer impose content-based restrictions on signage. Mr. Weiland has researched this issue and will provide a legal perspective on how to implement a sign ordinance that can withstand legal scrutiny.

Public Outreach Workshop #1 – Los Banos Parks Master Plan Back to Table of Contents
(800) 955-7599 | QKinc.com 3
Project Team
Project Team
Organizational Chart
The following organizational chart represents our proposed team, including projected hours, for the Zoning Ordinance Update Project.

Project Manager/Lead Planner
Steve Brandt, AICP
Principal Planner
Projected Hours: 231
Document Formatting and Editing
Vanessa Williams
Technical Editor
Projected Hours: 98
Form-based Codes, Graphics,
Handbook
Marina Hueners
Senior Associate Planner
Projected Hours: 258
Research, Writing, Outreach
Kristin Pittack
Senior Associate Planner
Projected Hours: 168
Research, Writing, CEQA
Carlos Rojas
Senior Associate Planner
Projected Hours: 96
Research, Writing, Outreach
Trevor Stearns
Associate Planner
Projected Hours: 168
Research, Writing
Karla Topete
Associate Planner
Projected Hours: 92
Zoning Map
Tim Mulick
Assistant Planner
Projected Hours: 220
Zoning Map
Kathie Castanon
Assistant GIS Technician
Projected Hours: 154
Landscape Design Section of Code
John McGee, LLA
Senior Landscape Architect
Projected Hours: 12
Principal-in-Charge
Amber Aguayo

CFO/COO
Projected Hours: 3
Ordinance Coordination, Outreach
Kira Noguera
Senior Planner
Projected Hours: 260
CEQA Compliance
Jaymie Brauer
Principal Planner
Projected Hours: 36
QA/QC Review
Christopher Mynk, AICP
Principal Planner
Projected Hours: 61
User Guide/Handbook
Annalisa Perea, AICP, LEED AP-ND
Senior Planner
Projected Hours: 76
Public Outreach/Background Report
Mike Ratajski
Senior Planner
Projected Hours: 98
Sign Ordinance Legal Analysis
David Weiland
Partner with Coleman & Horowitt, LLP
Back to Table of Contents
(800) 955-7599 | QKinc.com 4
Individual Qualifications & Experience
Individual Qualifications & Experience
Project Team Members
The following is a listing of QK’s proposed Project Team Members.

Key Team Members Title Role
Steve Brandt, AICP Principal Planner Project Manager/Lead Planner Kira Noguera Senior Planner Ordinance Coordination, Outreach Jaymie Brauer Principal Planner CEQA Compliance
Christopher Mynk, AICP Principal Planner QA/QC
Annalisa Perea, AICP, LEED AP-ND Senior Planner User Guide/Handbook Mike Ratajski Senior Planner Form-based Codes, Graphics Additional Team Members
Marina Hueners Senior Associate Planner Form-based Codes, Graphics, Handbook Kristin Pollack Senior Associate Planner Research, Writing, Outreach Carlos Rojas Senior Associate Planner Research, Writing, CEQA Trevor Stearns Associate Planner Research, Writing, Outreach Karla Topete Associate Planner Research, Writing
Tim Mulick Assistant Planner Zoning Map
Vanessa Williams Assistant Project Manager Technical Editor John McGee, LLA Senior Landscape Architect Landscape Design Section of Code Kathie Castanon Assistant GIS Technician Zoning Map
Subconsultant
David Weiland Partner with Coleman & Horowitt, LLP Sign Ordinance Legal Analysis Key Staff Resumes
Resumes for key staff members are included on the following pages.

Back to Table of Contents
QK Team

AREAS OF EXPERTISE
• Client Coordination / Project Management
/ Service
• Regulatory and Budgetary Finance
• Policy and Implementation
• Program Development / Professional
Operations

EDUCATION
• BS, Business Administration,
University of Phoenix, AZ

PROFESSIONAL ORGANIZATIONS
• Director, American Public Works
Association (APWA)
• Natural Resources Task Force, California
Council for Environmental and Economic
Balance, Sacramento (2015 to Present)
• Member, American Planning Association
(APA)
• Alumni, Chamber of Commerce,
Leadership Fresno XXV
• Member, American Environmental
Professionals (AEP)
• Member, Building Industry Association of
Fresno/ Madera County, (BIA)

CONTINUING EDUCATION
• Caltrans FAR Compliance/AASHTO
Auditing for State DOT and A/E, January
2016
• Business Law Update, 2016
• Caltrans LAPM Audit and Review Process,
November 2015
• Caltrans Procuring Federal-Aid Contracts,
January 2015
• GAP International Senior Executive
Leadership Training, 2014
• Project Management Professional (PMP)
Training Camp Certificate of Completion,
May 2012
• Association of Environmental
Professionals (AEP) Advanced CEQA
Amber Aguayo Chief Financial Officer/Chief Operating Officer Ms. Aguayo is an experienced management professional who specializes in client coordination, business operations, finance and project delivery for multi-disciplined and complex projects.

She serves as the Chief Financial Officer and Chief Operating Officer and has more than 25 years of professional experience overall. Ms. Aguayo excels at working with Clients to clearly define objectives and prepare scope and contracts to help agencies, firms, and individuals within the public works and planning community to ensure the successful implementation for their projects and programs.

PROJECT EXPERIENCE
• Bicycle, Pedestrian, & Trails Master Plan – City of
Fresno, CA. Project Manager.
• Maricopa Sun Solar Energy Complex, Maricopa
Orchards, LLC – Kern County, CA. Project
Manager/Principal-in-Charge.
• Habitat Conservation Plan & Environmental Impact
Statement, Maricopa Orchards, LLC – Kern County, CA.

Project Manager/Principal-in-Charge.
• CSA 34 Millerton Lake Pipeline Project Phase II, Table Mountain Rancheria Tribal Council – Friant, CA. Project Manager.
• Fresno-Clovis Interconnection Pipeline, Granville Homes – Fresno, CA. Project Manager.
• Westlake Development Project/Fresno Metropolitan
Flood Control District Master Plan Amendment, Granville Homes – Fresno, CA. Project Manager.
• Water System Improvements MD33 Phases I and II,
Madera County Resource Management Agency –
Fairmead, CA. Project Manager.
• Copper River Impact Fee Study, Granville Homes –
Fresno, CA. Project Manager.
• No Neighborhood Left Behind – City of Fresno, CA.

Project Manager/City Forces.
• Public Works Annual and Capital Improvement Projects
Budget – City Fresno, CA. Finance Manager.
• Citywide Capital Improvement Projects – City of Fresno, CA. Division Manager/Project Manager.
• Community Facilities Districts/Lighting and
Landscaping Maintenance Districts – City of Fresno, CA.

Division Manager.
• ADA Curb Cut Compliance Program – City of Fresno,
CA. Division Manager/Project Manager.
• Citywide Street Preservation Program - City of Fresno, CA. Public Works Manager.

QK Team

AREAS OF EXPERTISE
• General Plans / Zoning
• Land Development Entitlements
• Annexations / LAFCO
• Master Plans/Specific Plans
• Urban Development Boundaries
• Project Management

EDUCATION
• BA, Marketing/Management,
Fresno Pacific University

REGISTRATIONS / CERTIFICATIONS
• Certified Planner, American Institute of
Certified Planners (AICP), No. 133286

PROFESSIONAL ORGANIZATIONS
• Member, American Planning Association
(APA)
• Member, Association of Environmental
Planners (AEP)

AWARDS / RECOGNITION
• Hanford Downtown East Precise Plan,
Award of Merit – CA Central Section APA,
2014

CONTINUING EDUCATION
• SR 1000 EJ and General Plan, AEP, 2017

PRESENTATIONS
• Urban Growth Boundaries and LAFCos,
CALAFCo Annual Conference, 2015
• Historic Corridor Project Comes of Age, CA
APA Conference, 2013
• Walking Audits: A Tool for a Successful
Public Participation Process, CA APA
Conference, 2013
Steve Brandt, AICP Principal Planner
Mr. Brandt is an experienced planning professional who
specializes in municipal policy planning involving general plans and zoning ordinances, development entitlement processing, and contract city planning. Currently serving as QK’s Planning Technical Lead, he brings 26 years of experience in the planning profession. Prior to joining QK, Mr. Brandt served in both current and advanced planning functions with the City of Visalia, where he took on all planning roles from front counter staff to manager and was ultimately appointed Planning Manager of the Planning Division. Before that he served as Tulare County LAFCo staff analyst and has a firm understanding of annexation procedures. In addition, Mr. Brandt served as Entitlements Manager at Centex Homes Central Valley Division, where his primary responsibility consisted of obtaining land use approvals and resolving entitlement issues.

PROJECT EXPERIENCE
• 2040 General Plan Update, Program Environmental
Impact Report, & Zoning Ordinance Update – City of
Delano, CA. Principal-in-Charge.
• Hanford General Plan and Zoning Ordinance Update –
City of Hanford, CA. Project Manager.
• Morgan Ranch Master Plan and EIR – City of Turlock,
CA. Project Manager/Senior Planner.
• Visalia Comprehensive Zoning Ordinance Update – City
of Visalia, CA. Project Manager/Principal Planner
• Hanford Downtown East Precise Plan – City of Hanford, CA. Principal Planner
• Pedestrian & Bicycle Impediment Study – City of
McFarland, CA. Associate Planner.
• Active Transportation Program (ATP) – City of Visalia, CA. Document Co-author.
• Pavement and Sign Management Program – City of
Farmersville, CA. Project Manager.
• Contract City Planning Services – City of Lemoore, CA.

Project Manager and City Planner.
• On-call Planning Services – City of Selma, CA. Principal Planner.
• Development Impact Fee Study – City of Delano, CA.

Planning Analyst.
• Golden State Corridor Economic Development
Infrastructure Improvements Project, Fresno Council of
Governments – Fresno County, CA. Assistant Project
Manager.
• Annexation Analysis and Processing – City of Visalia.

Principal Planner.
• Zoning and Subdivision Ordinance Updates – City of
Chowchilla, CA. Project Manager/Principal Planner.
• Chowchilla Industrial Park Specific Plan – Chowchilla, CA. Planning/Land Use/Circulation.

QK Team

AREAS OF EXPERTISE
• City Planning
• Current Planning
• Environmental Planning
• Environmental Analysis
• Water Resource Planning and Policy

EDUCATION
• BS, Environmental Policy Analysis and
Planning, University of California, Davis

PROFESSIONAL ORGANIZATIONS
• Member, American Planning Association
(APA)

CONTINUING EDUCATION
• Community Air Protection Program -
Assembly Bill (AB) 617 and CEQA, August
2018
• Advanced CEQA Workshop, February 2018
• Beyond 2020: The Challenge of
Greenhouse Gas Reduction Planning by
Local Governments in California,
September 2016
• Subdivision Map Act Seminar with Michael
Patrick Durkee, May 2015
• 2014 Advanced CEQA Workshop
Kira Noguera Senior Planner
Ms. Noguera is an experienced city planner who has a
comprehensive understanding of the planning process from both the private and public sectors. Prior to rejoining QK, Ms.

Noguera served as a City Planner for the Cities of Fresno and Madera where her primary responsibilities consisted of
processing current planning applications, assisting developers and citizens at the public counter, and project management.

Broadening her perspective, she spent time managing
environmental compliance in the field for Pacific Gas and Electric during the construction of their utility owned solar facilities. As an Assistant Planner at QK, she conducted CEQA review and served as a contract planner for the City of Rocklin and the County of Calaveras.

PROJECT EXPERIENCE
• Contract City Planning Services – Cities of Selma, Lindsay, Lemoore, CA. Senior Planner. (On-going)
• Chowchilla Subdivision & Zoning Ordinance Update – City of Chowchilla, CA. Assistant Planner.
• Contract Planning Services ― City of Rocklin, CA. Contract Planner.
• Contract Planning Services ― County of Calaveras, CA.

Contract Planner.
• General Plan Vision 2030 EIR ― City of Merced, CA. Project Planner.
• Zoning Ordinance Update ― City of Dinuba, CA. Project Planner.
• Canal Improvement Initial Study/Mitigated Negative
Declaration, French Camp Outlet ― Manteca, CA. Project
Planner.
• Gustine Redevelopment Plan ― City of Gustine, CA. Project Planner.
• Morgan Ranch General Plan Amendment, Rezone and
Tentative Subdivision Map EIR – City of Turlock, CA. Project Planner.
• Faculty and Staff Housing Village EIR, California State University Sacramento (CSUS) – Sacramento, CA. Project
Planner.
• Willow Creek Specific Plan ― City of Visalia, CA. Project Planner.
• Creek Retail Center EIR, Knighton and Churn – Shasta
County, CA. Project Planner.
• 5-year Implementation Plan, Avenal Redevelopment Agency ― Avenal, CA. Project Planner.

QK Team

AREAS OF EXPERTISE
• Environmental Planning
• Land Use/Permitting
• CEQA/NEPA Compliance
• Agency Coordination
• California Department of Education Title 5
Requirements

EDUCATION
• MA, Anthropology (Zoology minor),
University of Texas, Austin
• BA, Anthropology (English/Biology minors),
Purdue University, West Lafayette, Indiana
(with Honors)

PROFESSIONAL ORGANIZATIONS
• Member, Association of Environmental
Professionals (AEP)

AWARDS / RECOGNITION
• Excellent Performance, Find the Lost
Dollars™ National Training Program, 2020
Jaymie L. Brauer Principal Planner
Ms. Brauer has over 13 years of experience with CEQA
compliance, and manages environmental documentation efforts for public agencies and private interests. She has worked as a Project Manager on a number of large projects involving the preparation of CEQA documents such as Environmental Impact Reports (EIR), Addendum EIRs, and Mitigated Negative
Declarations (MND), and her specialties include Central Valley issues such as road improvement/highway safety, renewable energy, municipal infrastructure, and waste recycling/industrial projects. She has also worked on NEPA documents such as Environmental Impact Statements (EIS) and Environmental Assessments (EA). Key tasks and responsibilities included project management and supervision of technical experts and consultants, as well as preparation of environmental documents, and development of mitigation measure monitoring and
compliance.

PROJECT EXPERIENCE
• 2040 General Plan Update, Program Environmental
Impact Report, & Zoning Ordinance Update – City of
Delano, CA. Principal Planner/EIR Lead.
• Kern County EIR for Oil/Gas Zoning Amendment,
Western States Petroleum Association – Kern County,
CA. Senior Planner.
• On-Call Environmental Services for Caltrans Districts 6 & 9, Parson Transportation Group, Inc. – Central Valley, CA. Project Manager/Principal Planner.
• On-Call Environmental Services, Kern County Roads
Department – Kern County, CA. Project
Manager/Principal Planner.
• On-Call Environmental Assistance, Regulatory
Permitting, and Project Management, Water Resources
Department – City of Bakersfield, CA. Project
Manager/Principal Planner.
• CEQA/NEPA Services for Oro Verde Solar Project, TerraGen, LLC – Edward Air Force Base, Kern County, CA.

Principal Planner/QAQC.
• Fatal Flaws/Critical Issue Analyses for Potential Solar Projects, Lend Lease Energy Development, LLC – Kern
County, CA. Project Manager/Lead Author.
• Environmental Compliance for Lift Station #1/Force
Main Project, North of the River Sanitation District –
Kern County, CA. Lead CEQA/Lead Author.
• Environmental Compliance for High Speed Rail Project, City of Corcoran – Tulare County, CA. Lead NEPA/CEQA.
• Madera Travel Center EIR - City of Madera, CA. Senior Planner/ Author.

QK Team

AREAS OF EXPERTISE
• Land Use Planning
• CEQA/NEPA Compliance
• Environmental Planning
• Agency Coordination

EDUCATION
• BS, Community and Regional Planning,
Iowa State University

REGISTRATIONS / CERTIFICATIONS
• Certified Planner, American Institute of
Certified Planners (AICP), No. 24114

PROFESSIONAL ORGANIZATIONS
• Member, American Planning Association
(APA)
Christopher Mynk, AICP Principal Planner/
Branch Manager – Bakersfield
Mr. Mynk joined QK following a position as a senior level planning manager with the Kern County Planning and Natural Resources Department (County Planning). Mr. Mynk served the County for over 12 years with experience in CEQA and NEPA document preparation and mitigation compliance. In his current position, Mr. Mynk manages project entitlement efforts for public agencies and private interests. He prepares and provides technical analysis on environmental documentation relating to a variety of issue areas. Mr. Mynk also advocates on behalf of his clients to ensure the best possible outcome for their projects, including public outreach and interaction with public agencies.

His areas of expertise include the California Central Valley, Mojave Desert, Oil and Gas permit processing, commercial scale renewable energy (wind and solar), residential, commercial and industrial development.

PROJECT EXPERIENCE
• EIR for Oil/Gas Ordinance Amendment – Kings and Fresno Counties, CA. Project Manager/Author.
• Kern County EIR for Oil/Gas Zoning Amendment, Western States Petroleum Association – Kern County, CA. Project Manager.
• Catalina Renewable Energy Project EIR – County of Kern, CA. Supervising Planner (County).
• Avalon Wind Project EIR – County of Kern, CA. Supervising Planner (County).
• FRV Orion Solar Project EIR – County of Kern, CA.

Supervising Planner (County).
• Alta-Oak Creek Mojave Project EIR – County of Kern, CA.

Project Manager (County).
• Morgan Hills Project EIR – County of Kern, CA. Supervising Planner (County).
• Lower West Wind Project EIR – County of Kern, CA.

Supervising Planner (County).
• North Sky River/Jawbone Canyon Projects EIR – County of Kern, CA. Supervising Planner (County).
• FRV Valley Solar Project EIR – County of Kern, CA.

Supervising Planner (County).
• Valley Solar Project by enXco EIR – County of Kern, CA.

Supervising Planner (County).
• EIR and Land Use Entitlements for 157-acre Commercial and Industrial Project – Bakersfield, CA. Project Manager.
• Land Use Entitlements/Engineering/Surveying for Discovery Bakersfield – Bakersfield, CA. Project Manager.

QK Team

AREAS OF EXPERTISE
• Project Requirement Compliancy
• Project Visioning/Modeling
• LEED Standards Compliancy
• CEQA/NEPA Compliance
• Client Liaison

EDUCATION
• BS, City and Regional Planning, Cal Poly,
San Luis Obispo
• Architecture & Urbanism Study Abroad,
Universidade Federal do Rio de Janiero,
Brazil

REGISTRATIONS / CERTIFICATIONS
• Certified Planner, American Institute of
Certified Planners (AICP), No. 29661
• LEED AP (Leadership in Energy and
Environmental Design), No. 10659427
Specialty Path: Neighborhood
Development
• Certified Regulation VIII Dust Control Plan
Preparer - SJVAPCD

PROFESSIONAL ORGANIZATIONS
• Area 5 Trustee, State Center Community
College District
• Member, Association of Environmental
Professionals (AEP)
• U. S. Green Building Council, Board of
Directors
• Member, Creative Fresno
• Former Member, Tree Fresno Board of
Directors, 2010 – 2011
• Fresno Tower District Design Review
Committee
• Leadership Fresno, Class 31, Fresno
Chamber of Commerce
• Historical Fresno High Neighborhood
Streetscape Committee
Annalisa Perea, AICP,
LEED AP-ND Senior Planner
Ms. Perea brings expertise in community design and planning, where she maintains a comprehensive and interdisciplinary approach to design that makes her versatile and diverse in her skills. Her experience has spanned the full spectrum from largescale urban planning assignments to the detailed design of 3D visionary landscape and urban design driven concepts. Ms.

Perea has worked in both the private and public sectors, and over the years, has been involved in her community at several levels. She has vast experience with government agency and stakeholder coordination.

She conducts environmental analysis and prepares
documentation in compliance with CEQA on a variety of
environmental issue areas (e.g., agricultural resources, biology, geology and soils, hazards and hazardous waste, hydrology and water quality, land use and planning, mineral resources, population and housing, public services, recreation, and utilities and service systems). She performs qualitative and quantitative analysis, as well as computerized air quality modeling in support of such documentations. Ms. Perea has prepared numerous CEQA compliance documents for projects including highway and road improvements, residential developments, commercial developments, waste water treatment plants, solar facilities, school facilities, and industrial processing plants.

Ms. Perea brings an interdisciplinary perspective to all of her work, with an understanding on sustainability, innovate designs and socio-economic issues of the urban context.

PROJECT EXPERIENCE
• 2040 General Plan Update, Program Environmental
Impact Report, & Zoning Ordinance Update – City of
Delano, CA. Senior Planner.
• Housing Element Update – City of Chowchilla, CA.

Senior Planner.
• Hanford General Plan Update – City of Hanford, CA.

Associate Planner.
• 2015 – 2023 Delano Housing Element Update/Negative
Declaration – City of Delano, CA. Associate Planner
• Contract Planning Services – Sanger, CA. Associate
Planner/Contract City Planner.
• Contract Planning Services – Chowchilla, CA. Senior
Associate Planner/Contract City Planner.
• Zoning Amendments – City of Dinuba, CA. Associate
Planner.
• Hanford Pedestrian and Bicycle Plan – City of Hanford, CA. Associate Planner.
• Millerton Health Science University EIR, Granville Homes – County of Fresno, CA. Associate Planner.

QK Team

AREAS OF EXPERTISE
• Project Management
• Site Planning & Urban Design
• Parks, Recreation and Trails Planning
• Bus and Rail Transit Studies
• Policy Planning
• Zoning and General Plans
• Specific Plans, Master Plans, Precise Plans
• Urban Design, Urban Villages, Transit
Oriented Development
• Land Use Planning
• Site Planning
• Feasibility Studies, Lot Yield Studies
• Public Outreach, Design Charettes,
Facilitator
• Corridor Studies
• Industrial Parks, Employment Centers,
R&D, Business Parks.

EDUCATION
• BLA (Bachelor of Landscape Architecture -
Planning emphasis), Michigan State
University
• Courses in Graphic Arts (after college
graduation), Macomb County Community
College
• Post Graduate Education Studies (Resort
Planning, Golf Course Planning) Harvard
University

AWARDS / RECOGNITION
• Woodlake Community Center, 2018 APWA
Central CA Chapter, Public Works Project
of the Year – Small Cities/Rural
Community Projects, Buildings/Structures
• Woodlake Downtown Plaza, 2018 CPRS
District 7 Outstanding Facility Award
• Hanford Downtown East Precise Plan,
Award of Merit – CA Central Section APA,
2014
• Fallen Heroes Park, 2015 Tree Fresno
Arbor Day Award.

Michael Ratajski Senior Planner/
Urban Design/Public Participation
Mr. Ratajski has more than 35 years’ experience in parks, recreation, and trails planning, landscape architecture, land planning, site planning, urban design, and public outreach for a wide variety of project types in the United States, Mexico, Asia, Africa, Europe, and the Middle East. Mr. Ratajski has led and participated in planning efforts for corridor studies, zoning code updates; general plan revisions and updates; redevelopment; urban infill; land use master plans; specific plans; corridor plans; mixed-use and transit-oriented development; low-, mid-, and highdensity residential projects; “Main Street” revitalization; formbased codes and urban design guidelines; “green/ sustainable” development; and, new urbanist communities. He has worked with numerous public agencies and private developers and builders. Mr. Ratajski has led numerous community visioning workshops, public forums, design charettes, surveys, bust tours, walking tours, and guest lectures. As former co-chairman of the Urban Land Institute Technical Advisory Panel (ULI-TAP), Mr.

Ratajski has worked with public agencies and teams of subconsultants in identifying mixed use, densities and intensities, mid- to high-density residential development, open space, design standards and guidelines for new development, circulation, and parking.

PROJECT EXPERIENCE
• Hanford General Plan Update, EIR, Zoning Ordinance
Update, Subdivision Ordinance Update – City of Hanford, CA. Principal Planner/Public Outreach Facilitator.
• National City 2030 General Plan and Land Use Code
Updates – National City, CA. Planning/Land Use Code
Preparation and Reorganization.
• Morgan Ranch Master Plan – City of Turlock, CA. Project Planner.
• Kettleman City SR 41 Improvement Study – Kettleman
City, CA. Outreach Facilitator, Planner.
• East El Monte Way Strategic Land Use Plan – Dinuba, CA.

Outreach Facilitator, Planner, Lead Designer.
• Chowchilla Downtown Design Guidelines – Chowchilla,
CA. Planning and Public Outreach.
• Chowchilla Industrial Park Specific Plan – Chowchilla, CA.

Planning/Public Outreach.
• Hanford Downtown East Precise Plan – City of Hanford, CA. Project Manager/Principal Planner/Public Outreach
Facilitator.
• Golden State Corridor Economic Development
Infrastructure Improvements Project, Fresno Council of
Governments – Fresno County, CA. Urban Design/Design
Guidelines Manual/Outreach Facilitator.
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Relevant Project Experience
Relevant Project Experience
Zoning and Subdivision and Ordinance Updates
City of Chowchilla, CA
PROJECT RELEVANCE: QK prepared a new Zoning Ordinance for the City of Chowchilla based upon their recently updated General Plan. The project included a new Zoning Map, updated parking standards, and new sign ordinance, and changes to entitlement review procedures.

Role: Prime consultant – QK facilitated
public workshops with the Planning
Commission and wrote the Ordinances.

Key Staff Members: Steve Brandt, AICP;
Annalisa Perea, AICP, LEED-NP; Mike Ratajski
Description: The City of Chowchilla
requested professional services to
manage and complete an update of the
City’s Subdivision and Zoning Ordinances,
Titles 17 and 18 of the Chowchilla
Municipal Code. The City had completed
a General Plan Update and Program
EIR. The GPU required that new zoning
districts be incorporated into a revised
Zoning Ordinance and Zoning Map.

The Planning Division had kept a wish-list of Zoning Ordinance issues to be incorporated into the new Zoning Ordinance. The Zoning Map needed to be drawn using GIS for the first time.

This Zoning Ordinance update included a full re-write of the sign ordinance to comply with Reed v. Gilbert.

The update process was applied simultaneously to both the Subdivision Ordinance and the Zoning Ordinance. The intent was primarily to bring both documents current, without
fundamentally changing their structure or format. The
primary objectives were that the Zoning Ordinance update was made consistent with the current GPU (including the Housing Element that was being updated at the same time), accommodated the new zoning districts outlined within the GPU, incorporated new State requirements, and made the
desired Planning Department changes.

The work program involved City staff and the community
in the update process and generated a sense of ownership and commitment to the new regulations. Although our work program was designed to address problems, concerns, and improvements throughout the entire body of regulations, the primary emphasis was on addressing issues related to implementing the adopted General Plan. QK was focused on changes to the regulations that City staff and decision-makers believed most important to meeting the City’s needs.

Contract Amount: $105,000
Completion Date: 10/2018
Client Reference:

Rod Pruett, City Administrator
Ph: (559) 665-8615
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(800) 955-7599 | QKinc.com 13
Hanford General Plan Update, EIR, Zoning Ordinance Update, Subdivision Ordinance Update, and Infrastructure Master Plans City of Hanford, CA
PROJECT RELEVANCE: QK coordinated multiple planning efforts into a consistent set of plans and ordinances that work together to guide Hanford’s growth.

Role: Prime consultant – QK facilitated Advisory Committee meetings, workshops, and outreach meetings. QK coordinated the effort to prepare a new General Plan, General Plan EIR, Zoning and Subdivision Ordinance, and water, sewer, and storm drain master plans that are all consistent with each other.

Key Staff Members: Steve Brandt, AICP; Mike Ratajski
Description: Due in large part to the success of QK’s APA award-winning Hanford Downtown East Precise Plan and our team’s experience with the preparation of policy documents, QK prepared a comprehensive General Plan Update, Zoning Ordinance and Subdivision Ordinance update, as well as the supporting Program EIR.

The Zoning Ordinance update involved a full re-write of the entire code to include compliance with new State and federal regulations and court cases. This included a new sign ordinance that was in compliance with Reed v. Town of Gilbert.

The Zoning Ordinance was written to implements the City Council’s desire for a “Red Carpet, not Red Tape” approach.

Development of the GPU and the Zoning Ordinance coincided with the construction phases for the California High Speed Rail, recent State laws like Senate Bill 375, California’s Sustainable Communities and Climate Protection Act, and regional planning efforts like the San Joaquin Valley Blueprint.

The General Plan and the ZO reflect the new State laws as well as changes in housing preferences. The EIR was certified, and the General Plan and Zoning Ordinance were adopted by the City Council all in the same night in April 2017.

The QK team concurrently prepared the Infrastructure Master Plans for sanitary sewer, potable water, and storm drainage.

By including these Master Plans into the scope of the overall project, infrastructure planning occurred simultaneously with the General Plan update process. This proactive strategy eliminated a problem that too often plagues cities; a General Plan update identifies areas for development, and then later it’s discovered that the City cannot efficiently provide services.

Contract Amount: $1,166,000
Completion Date: 04/2017
Client Reference:

Mario Cifuentez, City Manager
Ph: (559) 585-2516
Relevant Project Experience
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Visalia Comprehensive Zoning Code Update
City of Visalia, CA
PROJECT RELEVANCE: QK worked closely with City Planning staff to keep the portions of the Zoning Ordinance that were still effective and weave in new and updated ordinance language to implement the new General Plan and meet new State law requirements.

Role: Prime Consultant – QK facilitated public workshops and wrote the Zoning Ordinance.

Key Staff Members: Steve Brandt, AICP; Annalisa Perea, AICP,

LEED NP
Description: QK prepared a strategic update to Visalia’s Zoning Ordinance to bring it into conformance with the recently adopted General Plan and with new State regulations. The Update also reduced standard minimum lot sizes for singlefamily neighborhoods. QK held six public workshops with the Planning Commission and synthesized their comments with those from, City staff, the public, developers, and the City Council to ensure complete buy-in with the ordinance changes.

One of the focuses of the new Ordinance was the preparation of a new mixed-use zone to implement the City Council’s vision for the east downtown area. Another focus involved working with property owners who had specific requests for the Zoning Map for their properties and supporting the City Council with additional information to help make informed decisions. The new Ordinance was adopted in 2015.

Contract Amount: $78,500
Completion Date: 07/2018
Client Reference:

Paul Bernal, City Planner
Ph: (559) 713-4833
Relevant Project Experience
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QK is also the
contract City
Planner for
the following
cities, where we
interpret zoning
ordinances
every day.

City of Lemoore
Steve Brandt, AICP
City of Selma
Kira Noguera
City of Chowchilla
Annalisa Perea, AICP, LEED-ND
City of Delano
Christopher Mynk
City of Lindsay
Kira Noguera
Additional
Previous or Ongoing
Projects by QK
---------------------
City of Woodlake Zoning
Ordinance, Subdivision
Ordinance, and Downtown
Design Standards
---------------------
City of Delano General Plan,
Zoning Ordinance Update & EIR
---------------------
City of Merced
Sign Ordinance Update
---------------------
City of Chowchilla
Downtown
Design Guidelines
---------------------
Cartmill Crossings
Environmental Impact Report
(Located in the City of Tulare)
Relevant Project Experience
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Statement of Understanding & Scope of Work
Statement of
Understanding
& Scope of Work
Project Understanding
The City of Tulare wants to comprehensively update their Zoning Code so that it can be used as a tool to provide great customer services and attract desirable growth
and development into the City. The Update needs to
incorporate new State requirements, Staff’s and the Planning Commission’s recommended changes, and stakeholder
recommendations. The Zoning Map and the accompanying
User Guide can provide graphics that will make the Code easier to understand and implement. Stakeholder meetings and Planning Commission workshops will allow the public to provide valuable input.

KEY ISSUES
City staff have identified the following goals for the zoning code update effort:
• Implement 2035 General Plan policies
• Be consistent with State and federal law
• Be intuitive, graphic and user-friendly
• Create a transparent, predictable and consistent
process
• Promote high quality design
• Respond to community concerns
• Promote infill, mixed-use, and transit-oriented
development in TPAs and mixed-use overlay areas
• Standardize and simplify development review
Approach
QK’s goal will be to prepare a new
Tulare Zoning Ordinance that is
CLEAR, CONSICE, AND MEANINGFUL.

Clear
A good ordinance is well organized and easy to understand.

The following table describes the topics usually found in a zoning ordinance. They can be organized into three groups:
uses, design standards, and procedures. Keeping the
document organized helps the reader get to the topics they need quickly.

Uses Design Standards Procedures
Zone Districts Lot Sizes Conditional Use
Permits
Allowed Uses Building Setbacks Temporary Use
Permits
Conditional Uses Building Height Variances &
Exceptions
Temporary Uses Fences and Walls Zone Changes
Nonconforming
Uses On-site Parking Site Plan Review
Definitions of
Uses Landscaping Enforcement
Zone Map Density Bonuses Concessions &
Incentives
Signs
Writing ordinance text is its own particular type of writing. It is direct, precise, and unambiguous in its communication.

Most Zoning Ordinances originally carried a heavy amount of legalese, but the recent successful ordinances have been written with plain, clear wording. We plan to avoid the legalese and communicate clearly with common sense phrasing.

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Typical examples of legalese that we will avoid, and their equivalent wording follows:

Legalese Equivalent
during such time as while
due to the fact that because
afford the opportunity to allow
in order to to
in an effort to to
in the event that if
give guidance to guide
at such time as when
it shall be unlawful to it is unlawful to
shall be defined as means
Concise
We write ordinances with cross-references embedded in the document to avoid missing important codes. Each use and key term are defined in the ordinance.

We use a land use matrix (or table) to identify which uses are allowed in each zone. This avoids having to flip back and forth from list to list in each zone chapter.

The following uses shall be
permitted in the C-N zone:

Apparel
Arcades
Art supply stores
Automobile supply stores
Bakery goods stores
Banks
Barber shops / beauty shops
Billiard and pool halls
Bicycle shops
Book stores
Cafeterias, cafés
Camera shops,
Check cashing store
To describe which uses are allowed in which zone district, QK will replace the more difficult to interpret nested lists of uses with an easy-to-read use matrix table.

Statement of Understanding & Scope of Work
City of Woodlake Municipal Code Title 17 – Zoning Ordinance Administrative Draft 19 September 2020
Table 17.08.030-1
Commercial, Office, and Industrial Use Table
P = Use is Permitted by Right C = Use Requires Conditional Use Permit A = Use Requires Administrative Use Permit T = Use Requires Temporary Use Permit Blank = Use is Not Allowed
Land Uses
Commercial
and Mixed Use
Zones
Office,
Industrial,
Public, and Open
Space Zones
Specific
Land Use
Standards
(See
identified
C-N C-S MU PO I PF OS Section)
Eating and Drinking
Establishment Uses
B1 Artisan food and beverage
production and sales P P P C P
B2 Bar, nightclub, or lounge C C C
B3 Brewpub C P P
B4 Microbrewery C P P P
B5 Restaurant, full service P P P C
B6
Restaurant, limited service with
drive-thru pickup window meeting
all standards of 17.60.080
P P P C 17.60.080
B7 Restaurant, limited service with
drive-thru pickup window not
meeting all standards of 17.60.080
C C C C 17.60.080
B8 Restaurant, limited service without
drive-thru pickup window P P P C
Education and Assembly Uses
C1
Assembly facility (e.g. meeting
facilities, churches, community
centers)

P P P C C
C2 Auditorium P P P
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Meaningful
Codes, requirements, and standards need to have champions – people that support them because they understand how they further the greater good of the community. Some people believe codes like a Zoning Ordinance are just of bunch of red tape and rules. We don’t see it that way. Our experience has taught us that, at their heart, zoning ordinances are quite relational in character.

Land use limitations are intended to improve landowner relations, minimize their fear of uncertainty, and help them to get along with their neighbor. Involving stakeholders in the process creates champions in the community. We will keep this philosophy in mind as we wrestle with what specific code wording to add, subtract, or modify in the ordinance.

Zoning Ordinances can be viewed at ‘red tape’ when they have confusing or inconsistent requirements. We will work will you to remove the confusing and outdated requirements in the current code so that development standards can be easily identified by both City staff and developers early in the development process. Developers appreciate certainty and clear approval processes. By incorporating these strategies into the Zoning Code we can turn the ‘red tape’ into a ‘red carpet’ for new development.

Based on our experience with many zoning ordinances, here are some of our recommendations for making the new Zoning Ordinance a more user-friendly document that provides a ‘red carpet’ experience for developers and the public:

Make More Uses Allowed by Right
We can recommend uses that currently require Planning Commission approval that could be just allowed by right. This will help avoid Staff Conditional Use Permit (CUP) processing and Planning Commission hearings that don’t need to happen. We can work with the Planning Commission to determine which uses they are comfortable with allowing by right.

Use of Tables and Graphics
We use tables and graphics in our ordinances to further make them easier to understand.

Land Use Parking Space Requirement
Assisted living, skilled nursing, or hospice
facility; residential care facility
1 space per dwelling unit or
1 space for every 4 beds
Single-family dwelling 2 spaces per dwelling unit;
at least 1 space shall be
covered (garage or carport)
Multi-family dwelling, Studio or SRO (no
bedroom)
1 space per dwelling unit
Multi-family dwelling, 1-bedroom 1.5 spaces per dwelling unit; at least 50% of the
spaces shall be covered
parking
Multi-family dwelling, 2-bedroom 1.75 spaces per dwelling unit; 50% of the spaces
shall be covered parking
Multi-family dwelling, 3 or more bedrooms 2 spaces per dwelling unit; 50% of the spaces shall be
covered parking
Single- or multi-family dwelling specifically for
seniors 55 years of age or older
1 space per dwelling unit or
1 space for every 4 beds
Statement of Understanding & Scope of Work
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Easy to Read Zoning Map
QK will redraw the Tulare Zoning Map to make it easy to read and understand. Reduced size versions of our zoning maps from other cities are shown on pages 12, 13, and 14. In addition, an example of the City of Exeter Zone Map is shown below. During the preparation of the Tulare Zoning map, we'll use interactive Story Map software to graphically explain each zone to the Planning Commission during their workshops.

Statement of Understanding & Scope of Work
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Scope of Work
TASK 1.0 BACKGROUND AND

RECOMMENDED CONTENT
QK will review the key background materials and will join City staff on a tour of the community. At the end of this task, QK will provide a summary of recommended changes to the zoning
code that include your key issues described in our project understanding. QK will prepare a proposed outline laying out the recommended format, content, and organization of the new zoning code.

Subtask 1.1 Kick-Off Meeting
QK will prepare for and participate in a Project Kick-off Meeting with City staff. At the meeting, QK and City staff will review the outcome goals for this update and how to best achieve those goals. QK will review the existing Zoning Map and the General Plan Land Use Diagram and discuss with staff the purpose of different Plan designations and zoning districts, potential conflicts, and the City's approach to identifying properties that may require rezoning to be made consistent with the General Plan or existing conditions.

Subtask 1.2 Review Documents and
Information
QK will review documents received at the Project Kick-off Meeting and other relevant information that is background information for developing the new code. This can include other zoning codes that City staff would like to emulate.

Subtask 1.3 Early Community Stakeholder and
Staff Input
QK will conduct early consultation with City staff, as well as a City staff-generated list of community stakeholders. QK will hold up to four one-on-one meetings (in person or virtually) with stakeholders identified by City staff who have an interest or would like to provide input on the new code. QK will also discuss with City staff which portions of the Code will have a form-based approach.

Subtask 1.4 Legally Required Changes Due to
Federal and State Law
QK will conduct a technical review of the City’s existing zoning regulations and identify revisions needed to implement new requirements of State and federal law, and the City’s General Plan. This will include a legal review of the existing sign ordinance with recommendations on how to make changes so that the new sign ordinance complies with recent Federal court cases.

Subtask 1.5 Changes for Consistency with
2035 General Plan and TOD Plan
QK will conduct a technical review of the City’s existing zoning regulations, General Plan, and TOD Plan to identify updates that would need to be made to the Zoning Ordinance to bring it into compliance with the General Plan.

Subtask 1.6 Revisions Recommended by Staff
and Community Stakeholders
QK will compile a list of recommended revisions identified in the previous subtasks and provide to City staff for their review to ensure these are best incorporated to help achieve the desired goals for the Zoning Code Update.

Subtask 1.7 Changes for Internal Consistency
QK will conduct a comprehensive quality control review to ensure there is internal consistency within the updated Zoning Code.

Statement of Understanding & Scope of Work
Back to Table of Contents
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Subtask 1.8 Improvements for Readability,
Simplicity, and User-Friendly
Experience
”I didn’t see that part.” Zoning ordinances can be frustrating for developers and the public when the relevant codes are found in several locations in the ordinance. Often an important requirement is hidden in a section of the ordinance that the reader misses. QK will discuss with City staff the techniques we have to making the new code more user-friendly.

Task 1.0 Deliverables:
• Project Kick-off Meeting Agenda and Meeting Notes
• Table of Key Issues and Desired Changes, organized
by type of change (Excel spreadsheet), including
ideas from one-on-one meetings
TASK 2.0 PUBLIC OUTREACH
After more than 48 years of helping clients build and live in the environments they’re dreaming of, we have learned that winning the imagination of the community and its leaders is as important as the project itself. A well written planning document approved with strong community support avoids
additional time and expense down the road by avoiding or lessening future revisions and amendments. Having a strong public outreach component to the project adds legitimacy to the new code, giving it credibility into the future after the original decision-makers are no longer around.

Subtask 2.1 Tour of Tulare with City Staff
QK and City staff will tour the City of Tulare to get a front row perspective of issues and opportunities across the City that should be addressed through the update of the Zoning Code.

Subtask 2.2 GIS Story Mapping
QK will utilize ArcGIS’s Story Mapping tool to visually showcase the Zoning Ordinance update during the public outreach
phase and for public hearings. Story Mapping combines text, interactive maps, and other multimedia content to visually tell the story of what the Zoning Ordinance is proposing.

Subtask 2.3 Form Based Code Policy and
Graphics Development
QK will develop powerful graphics to complement the
proposed form-based code portions of the new code based on discussions with City staff.

Subtask 2.4 Signs, Setbacks, and Other
Graphics Development
QK has extensive experience developing graphics to visually show what a specific regulation is requiring. QK will develop graphics for various parts of the Zoning Code, including, but not limited to, signs and setback requirements. Developing these easy-to-understand graphics will help to make the overall Zoning Ordinance more user-friendly and easier to interpret and implement.

The COVID-19 pandemic
has ushered in a new set of
public engagement strategies for
communities across California
and the nation. Collecting
public opinions, ideas and
concerns cannot be gathered
by in-person meetings, at least
temporarily. Innovative methods
and approaches to compile this
information are and will continue
to be used for the foreseeable
future.

Virtual meetings, presentations,
and surveys are not anything new.

We propose to take what we’ve
already learned to be successful
and apply that here.

Statement of Understanding & Scope of Work
Back to Table of Contents
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Subtask 2.5 Planning Commission Workshop
Preparation
QK will work in conjunction with City staff to schedule five (5) workshops with the Planning Commission based on the phases for the project. QK will be responsible for preparing all presentation materials for the workshops and meetings.

Presentation materials will include PowerPoint and/or Prezi presentations, and ArcGIS Story Mapping presentations. All presentations will be provided to City staff beforehand for review and concurrence.

Subtask 2.6 Five Planning Commission
Workshops
QK will attend five workshops with the Planning Commission, will make a presentation on the specific topic(s) for that meeting, and will participate in a Q&A dialogue with the Planning Commission and general public. Topics will include zones, a new zoning matrix, development standards, signs, and entitlements processing.

Subtask 2.7 Materials for Project Website
QK will provide all outreach materials to the City for posting on the City’s Project website within a timely manner.

Task 2.0 Deliverables:
• Tour of Tulare with QK and City staff
• Notes from Tour of Tulare
• GIS Story Map
• Draft of Zoning Code Graphics (PDF)
• PowerPoint Presentation for each of the five
Planning Commission Workshops
• Outreach materials for City’s Project website (PDF)
TASK 3.0 DRAFT ZONING CODE
The Zoning Code Update work program is intended to involve City staff, the Planning Commission, the City Council, and the community so that it generates a sense of ownership and commitment to the new zoning regulations. Our work program is designed to address problems, concerns, and improvements throughout the entire body of zoning regulations to assist the City with achieving specific goals.

Subtask 3.1 Zoning Map Revisions –
Administrative Draft
QK will prepare a Zoning Map consistent with the General Plan update to include new zoning districts and/or updated locations for zoning districts. Using GIS and the City’s GIS shapefiles of parcels and the General Plan land use designations as a basis. All GIS data will be prepared so that it can be uploaded into Tulare’s GIS.

QK will review the administrative draft zoning map and any map changes that will result in notable changes to use or development standard regulations, first with City staff.

Subtask 3.2 Zoning Map Revisions – Public
Draft and Revised Public Draft
QK will make revisions to the Zoning Map based on Staff comments and prepare a Public Draft Map. Meetings with
City staff will be scheduled to review any outstanding issues.

After public review, QK will prepare a Revised Public Draft Map based on comments received.

Subtask 3.3 Zoning Ordinance –
Administrative Draft
QK will prepare an administrative draft Zoning Ordinance based review existing City documents, information, Planning Commission workshops and other discussions held in Tasks 1 and 2. Updates made will include legally required changes (updates due to updates in federal & state law), changes for consistency with 2035 General Plan & TOD Plan, revisions recommended by staff and community stakeholders, updates for internal consistency, and will make improvements for readability, simplicity, and to provide a more user-friendly experience.

Statement of Understanding & Scope of Work
Back to Table of Contents
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Subtask 3.4 Zoning Ordinance – Public Draft
QK will update the draft to incorporate any feedback received during the administrative draft stage. QK will finalize the document and prepare it for public circulation.

Subtask 3.5 Zoning Ordinance – Revised
Public Draft
After the Public Review Draft has been publicly circulated, QK will review all comments received on the Public Draft and will prepare written responses to the comments. The written responses can be either in a stand-alone document or inserted into the City’s staff reports. With City staff concurrence, the draft Ordinance will be revised based on comments received.

Subtask 3.6 User Guide/Handbook –
Administrative Draft
QK will work with City staff to prepare a simple user-guide/ handbook for the public that explains how to use the new zoning code. The handbook will be easy to understand and will include graphics and examples that demonstrate how the public can navigate the code and find answers to frequently requested information. The User Guide/Handbook will be
provided in PDF format that is internally hyperlinked for easy navigation within the handbook. If allowed by American Legal Publishing, links will be placed in the codified version to direct readers to the user-guide that is planned to be stored on the City website.

Subtask 3.7 User Guide/Handbook – Public
Draft and Revised Public Draft
Based on feedback received on the administrative draft, QK will revise the document to incorporate any comments received from City staff prior to finalizing the public draft User Guide/Handbook.

Task 3.0 Deliverables:
• Zoning Map – Administrative Draft
(PDF, 1 printed 36”x48” hard copy)
• Zoning Map – Public Draft
(PDF, 2 printed 36”x48” hard copies)
• Zoning Map – Revised Public Draft
(PDF, 2 printed 36”x48” hard copies)
• Zoning Ordinance – Administrative Draft
(Word, PDF, 5 printed hard copies)
• Zoning Ordinance – Public Draft
(Word, PDF, 5 printed hard copies)
• Zoning Ordinance –Revised Public Draft
(Word, PDF, 5 printed hard copies)
• User Guide/Handbook - Administrative Draft
(Word, PDF, 5 printed hard copies)
• User Guide/Handbook – Public Draft
(Word, PDF, 5 printed hard copies)
• User Guide/Handbook – Revised Public Draft
(Word, PDF, 5 printed hard copies)
Statement of Understanding & Scope of Work
City of Chowchilla Zoning Map
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TASK 4.0 CEQA REVIEW
We assume that the changes to the Zoning Ordinance will not generate impacts any greater than those analyzed in the adopted General Plan EIR [2014; SHC #2012071064]. We also assume the mitigation measures adopted by the City in the Migration Monitoring and Reporting Program (MMRP) would be sufficient to reduce impacts analyzed in the addendum to less than significant levels; those impacts determined to be significant and unavoidable in the EIR would remain as such for this Project.

Subtask 4.1 Addendum to the Certified EIR -
Administrative Draft
QK will prepare an Addendum EIR based on the City of Tulare’s certified General Plan EIR including the following updated impact sections to reflect 2021 CEQA requirements:

1. Aesthetics

2. Agriculture & forest resources

3. Air quality

4. Biological resources

5. Cultural resources

6. Geology and Soils

7. Greenhouse gas emissions

8. Hazards and Hazardous Materials

9. Hydrology and water quality

10. Land Use

11. Minerals

12. Population and Housing

13. Public services

14. Transportation and traffic

15. Tribal Cultural

16. Wildfires

17. Utilities
Subtask 4.2 Addendum to the Certified EIR -
Final Draft
QK will prepare revisions requested by City staff. The final draft will include the required updated §15091 Findings of Fact, §15093 Statement of Overriding Consideration and Mitigation Monitoring and Reporting Program (MMRP) documents for
the project.

Task 4.0 Deliverables:
• Initial Draft Addendum (Word)
• Addendum to the EIR (Word, PDF, and 5 hard
copies)
o Includes §15091 Findings of Fact
o Includes §15093 Statement of Overriding
Consideration
o Includes MMRP
TASK 5.0 HEARINGS AND ADOPTION
Subtask 5.1 Planning Commission Hearing
(1 Hearing)
QK will prepare a PowerPoint presentation that describes the draft Zoning Code and the outreach process that was undertaken to develop broad-based public support. QK will present the draft Code at the Planning Commission public hearing and answer any questions.

Subtask 5.2 City Council Hearings
(2 Hearings)
QK will prepare a PowerPoint presentation that describes the draft Zoning Code, the outreach process that was
undertaken to develop broad-based public support, and
Planning Commission’s recommendation. QK will present the draft Code at the City Council public hearing and answer any questions. Up to two Council hearings are anticipated.

Statement of Understanding & Scope of Work
Back to Table of Contents
(800) 955-7599 | QKinc.com 25
Subtask 5.3 Zoning Map – Final Draft
Any final edits to the zoning map made during the public hearing process will be incorporated into a final adopted version.

Subtask 5.4 Zoning Ordinance – Final Draft
Any final edits to the zoning ordinance made during the public hearing process will be incorporated into a final adopted version.

Subtask 5.5 User Guide/Handbook – Final
Draft
Any final edits to the user guide/handbook made during the public hearing process will be incorporated into a final adopted version.

Task 5.0 Deliverables:
• Planning Commission PowerPoint Presentation
• City Council PowerPoint Presentation
• Zoning Map – Final Draft
(PDF, ESRI map package with shapefiles,
2 printed 36”x48” hard copies)
• Zoning Ordinance – Final Draft
(Word, PDF, 5 printed hard copies)
• User Guide/Handbook – Final Draft
(Word, PDF, 5 printed hard copies)
QK writes
ordinances
to be clear,
concise and
meaningful,
and in such a
way that they
are direct,
precise, and
unambiguous.

Statement of Understanding & Scope of Work
Back to Table of Contents
(800) 955-7599 | QKinc.com 26
Schedule
Schedule
Below is our proposed schedule for the project. QK Project Manager: Steve Brandt, AICP QK Proposal No. P210581
Tasks Months following Notice to Proceed 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

1.1 Kick-off Meeting

1.2 Review Documents and Information

1.3 Early Community Stakeholder and Staff Input M M M M

1.4 Legally Required Changes Due to Federal and State Law

1.5 Changes for Consistency with 2035 General Plan and TOD Plan

1.6 Revisions Recommended by Staff and Community Stakeholders

1.7 Changes for Internal Consistency

1.8 Improvements for Readability, Simplicity, and User-Friendly Experience

2.1 Tour of Tulare with City Staff

2.2 GIS Story Mapping

2.3 Formed Based Code Policy and Graphics Development

2.4 Signs, Setbacks, and Other Graphics Development

2.5 Planning Commission Workshop Preparation

2.6 Five Planning Commission Workshops PC1 PC2 PC3 PC4 PC5

2.7 Materials Project Website

3.1 Zoning Map Revisions - Administrative Draft

3.2 Zoning Map Revisions - Public Draft and Revised Public Draft

3.3 Zoning Ordinance - Administrative Draft

3.4 Zoning Ordinance - Public Draft

3.5 Zoning Ordinance - Revised Public Draft

3.6 User Guide / Handbook - Administrative Draft

3.7 User Guide / Handbook - Ppublic Draft and Revised public draft

4.1 CEQA Document - Administrative Draft

4.2 CEQA Document - Final Draft

5.1 Planning Commission Hearing (1 Hearing) PCH

5.2 City Council Hearing (2 Hearings) CCH CCH

5.3 Zoning Map - Final Draft

5.4 Zoning Ordinance - Final Draft

5.5 User Guide / Handbook - Final Draft
Legend:

M One-On-One Stakeholder Meetings (up to 4)
PC1 to PC5 Planning Commission Workshops
PCH Planning Commission Public Hearing
CCH City Council Public Hearing
Notice to Proceed
Beginning of Public Review
Project Completion
Task 1.0 - Background and Recommended Content
Task 3.0 – Draft Zoning Code
Task 5.0 – Hearings and Adoption

PROJECT SCHEDULE
Task 2.0 - Public Outreach
2021 2022
Task 4.0 – CEQA Review
Client Name: City of Tulare
Project Name: Comprehensive Zoning Code Update
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MERCED
(209) 723-2066
2816 Park Avenue
Merced, California 95348

BAKERSFIELD
(661) 616-2600
5080 California Avenue, Suite 220
Bakersfield, California 93309

PORTERVILLE
(559) 781-2700
150 West Morton Avenue
Porterville, California 93257
CLOVIS
(559) 449-2400
601 Pollasky Avenue, Suite 301
Clovis, California 93612

VISALIA - HEADQUARTERS
(559) 733-0440
901 East Main Street
Visalia, California 93292
(800) 955-7599 | QKinc.com

December, 2021

EXHIBIT B
QK, INC. FEE PROPOSAL & COMPENSATION RATES

Task Description
Principal In ChargeProject Mgr / Principal PlannerQA/QC / Princiapl PlannerCEQA / Princiapal PlannerSenior PlannerSenior PlannerSenior PlannerSenior Associate PlannerSenior Associate PlannerSenior Associate PlannerAssociate PlannerAssociate PlannerAssistant PlannerSr. Landscape ArchitectSenior GIS AnalystAssistant GIS TechnicianProject AdministratorTotal HoursTOTAL LABORSubconsultant Fee Repro/Printing ExpensesMileageTOTALNON-LABOR EXPENSESTOTALS $180 $170 $170 $170 $155 $155 $155 $130 $130 $130 $105 $105 $97 $155 $118 $87 $110 15% $0.575

1.1 - Kick-off Meeting 16.0 8.0 8.0 16.0 8.0 56.0 $8,576.00 – $230.00 $230.00 $8,806.00

1.2 - Review Documents and Information 2.0 8.0 20.0 16.0 46.0 $5,860.00 – – $0.00 $5,860.00

1.3 - Early Community Stakeholder and Staff Input 4.0 20.0 16.0 16.0 20.0 76.0 $9,480.00 – – $0.00 $9,480.00

1.4 - Legally Required Changes due to Federal and State Law 4.0 10.0 10.0 10.0 10.0 44.0 $6,130.00 $8,050.00 – $8,050.00 $14,180.00

1.5 - Changes for Consistency with 2035 General Plan and TOD Plan 4.0 4.0 20.0 20.0 48.0 $6,000.00 – – $0.00 $6,000.00

1.6 - Revisions Recommended by Staff and Community Stakeholders 4.0 8.0 10.0 10.0 10.0 42.0 $5,240.00 – – $0.00 $5,240.00

1.7 - Changes for Internal Consistency 4.0 4.0 20.0 28.0 $3,900.00 – – $0.00 $3,900.00

1.8 - Improvements for Readability, Simplicity, and User-Friendly Experience 4.0 4.0 20.0 28.0 $3,500.00 – – $0.00 $3,500.00

0.0 42.0 0.0 8.0 18.0 74.0 0.0 0.0 56.0 40.0 20.0 52.0 38.0 0.0 0.0 0.0 20.0 368.0 $48,686.00 $8,050.00 $0.00 $230.00 $8,280.00 $56,966.00

2.1 - Tour of Tulare with City Staff 8.0 8.0 8.0 24.0 $3,376.00 – $230.00 $230.00 $3,606.00

2.2 - GIS Story Mapping 8.0 4.0 8.0 8.0 10.0 20.0 40.0 98.0 $10,730.00 – – $0.00 $10,730.00

2.3 - Formed Based Code Policy and Graphics Development 4.0 8.0 20.0 60.0 92.0 $12,820.00 – – $0.00 $12,820.00

2.4 - Signs, Setbacks, and Other Graphics Development 4.0 8.0 20.0 60.0 92.0 $12,820.00 – – $0.00 $12,820.00

2.5 - Planning Commission Workshop Preparation 8.0 4.0 20.0 20.0 20.0 20.0 92.0 $11,780.00 – – $0.00 $11,780.00

2.6 - Five Planning Commission Workshops 1.0 40.0 5.0 40.0 40.0 40.0 40.0 206.0 $27,310.00 – $575.00 $575.00 $27,885.00

2.7 - Materials Project Website 8.0 10.0 20.0 20.0 58.0 $6,360.00 – – $0.00 $6,360.00

1.0 72.0 13.0 0.0 0.0 92.0 40.0 0.0 68.0 120.0 0.0 68.0 78.0 0.0 30.0 60.0 20.0 662.0 $85,196.00 $0.00 $0.00 $805.00 $805.00 $86,001.00

3.1 - Zoning Map Revisions - Administrative Draft 20.0 4.0 60.0 20.0 60.0 164.0 $17,480.00 – $100.00 – $100.00 $17,580.00

3.2 - Zoning Map Revisions - Public Draft and Revised Public Draft 16.0 4.0 24.0 24.0 68.0 $7,816.00 – $100.00 – $100.00 $7,916.00

3.3 - Zoning Ordinance - Administrative Draft 20.0 16.0 20.0 40.0 40.0 40.0 40.0 10.0 16.0 242.0 $31,330.00 – $100.00 – $100.00 $31,430.00

3.4 - Zoning Ordinance - Public Draft 16.0 4.0 16.0 4.0 4.0 4.0 4.0 2.0 4.0 58.0 $8,510.00 – $100.00 – $100.00 $8,610.00

3.5 - Zoning Ordinance - Revised Public Draft 8.0 2.0 16.0 4.0 4.0 4.0 38.0 $5,460.00 – $100.00 – $100.00 $5,560.00

3.6 - User Guide / Handbook - Administrative Draft 2.0 8.0 40.0 40.0 80.0 8.0 178.0 $25,380.00 – $50.00 – $50.00 $25,430.00

3.7 - User Guide / Handbook - Public Draft 1.0 2.0 16.0 16.0 16.0 4.0 55.0 $7,990.00 – $50.00 – $50.00 $8,040.00

0.0 83.0 40.0 0.0 56.0 52.0 56.0 44.0 44.0 96.0 48.0 48.0 84.0 12.0 20.0 84.0 36.0 803.0 $103,966.00 $0.00 $600.00 $0.00 $600.00 $104,566.00

4.1 - Addendum to the Certified EIR - Administrative Draft 5.0 7.0 24.0 48.0 24.0 8.0 16.0 132.0 $17,336.00 – $200.00 – $200.00 $17,536.00

4.2 - Addendum to the Certified EIR - Final Draft 1.0 1.0 4.0 4.0 2.0 12.0 $1,760.00 – – $0.00 $1,760.00

0.0 6.0 8.0 28.0 0.0 0.0 0.0 52.0 0.0 0.0 24.0 0.0 0.0 0.0 0.0 8.0 18.0 144.0 $19,096.00 $0.00 $200.00 $0.00 $200.00 $19,296.00

5.1 - Planning Commission Hearing (1 Hearing) 1.0 8.0 16.0 8.0 33.0 $4,796.00 – $58.00 $58.00 $4,854.00

5.2 - City Council Hearing (2 Hearing) 1.0 16.0 24.0 8.0 49.0 $7,396.00 – $115.00 $115.00 $7,511.00

5.3 - Zoning Map - Final Draft 2.0 4.0 2.0 8.0 $902.00 – $100.00 – $100.00 $1,002.00

5.4 - Zoning Ordinance - Final Draft 1.0 2.0 2.0 5.0 $700.00 – $200.00 – $200.00 $900.00

5.5 - User Guide / Handbook - Final Draft 1.0 2.0 2.0 2.0 2.0 9.0 $1,270.00 – $100.00 – $100.00 $1,370.00

2.0 28.0 0.0 0.0 2.0 42.0 2.0 0.0 0.0 2.0 0.0 0.0 20.0 0.0 0.0 2.0 4.0 104.0 $15,064.00 $0.00 $400.00 $173.00 $573.00 $15,637.00

3.0 231.0 61.0 36.0 76.0 260.0 98.0 96.0 168.0 258.0 92.0 168.0 220.0 12.0 50.0 154.0 98.0 2081.0 $272,008.00 $8,050.00 $1,200.00 $1,208.00 $10,458.00 $282,466.00 Notes:

1. Expenses for reproduction, mailing, mileage, etc. are included in the fixed fee above and billed per our attached Charge Rate Schedule.

Labor Rates
Task 1.0 - Background and Recommended Content
Task 2.0 – Public Outreach
Task 3.0 – Draft Zoning Code
Subtotals
Personnel Hours (Labor Classification)

2. All time-and-materials fees will be invoiced monthly based on the level of effort in terms of hours relative to our Charge Rate Schedule.

3. When a Task is set on a time-and-materials fee basis, it signifies that it is not possible to accurately predict the amount of work effort required typical of on-call type services. QK will work with the client to set expectations where applicable.

4. Tasks billed by fixed fees will be invoiced monthly based on the percentage of work completed.

Expenses
TOTALS
Subtotals

5. Additional Services requested in writing and approved by the client will be provided on a time-and-materials basis.

Subtotals
Subtotals
Subtotals
Task 4.0 – CEQA Review
Task 5.0 – Hearings and Adoption
Back to Table of Contents

CITY OF TULARE

AGENDA ITEM TRANSMITTAL SHEET
Submitting Department: Community & Economic Development For Council Meeting of: March 15, 2022
Documents Attached: ☐Ordinance ☒Resolution ☒Other ☐None AGENDA ITEM:

Adopt Resolution 2022-09 declaring 7,500sf of City-owned property at the southwest corner of Cartmill Avenue and Akers Street, APN 166-240-003, as surplus property; and adopt Notice of Exemption, which determines that the potential sale of the lots is exempt from environmental review.

IS PUBLIC HEARING REQUIRED: ☐Yes ☒No
BACKGROUND/EXPLANATION:

The City is in possession of a parcel of land located at the southwest corner of Cartmill Avenue and Akers Street. The property was originally part of a small airport used for crop dusting activities, which was acquired by the Redevelopment Agency of the City of Tulare for remediation. Following remediation, the City retained the property for needed right-of-way associated with the Cartmill Avenue interchange project and future extension of Akers Street south of Cartmill Avenue. The Cartmill Interchange project has since completed and the City has converted the portion of the property needed from the extension of Akers Street to street right-of-way. The remainder of the parcel is approximately 7,500 square feet. The adjacent property owner to the west (Bud Mouw) is in the process of developing his property and has expressed an interest in obtaining the remainder of the City parcel.

The following is a summary of surplus property requirements:
a. “Surplus land” means land owned by the City in fee that the City Council declares, at a regular meeting, as surplus and not necessary for the “agency’s use.” Gov. Code 54221(b)(1).
b. Surplus property rules do not apply to “exempt surplus land,” which is defined in Gov.

AGENDA ITEM: Consent 5
c. Prior to disposing of or participating in negotiations to dispose of surplus property, the City must provide a written notice of availability to all specified agencies and entities having jurisdiction over the following: development of low- and moderate-income housing, open space, and school facilities construction or school district open space. Gov. Code § 54222.
d. A notice sent to housing entities must be sent to any public entity (defined in H&S Code § 50079) within whose jurisdiction the land is located and to “housing sponsors” (defined in H&S § 50074) that have notified HCD of their interest in surplus property. Gov. Code § 54222(a)(1).
e. “Housing sponsor” includes any public or private entity certified by HCD to own, construct, acquire, or rehabilitate a housing development. Health & Safety Code § 50074. The California Department of Housing and Community Development (HCD) maintains a list of “housing sponsors.”
f. An entity desiring to purchase or lease surplus property offered by the City shall notify the City in writing within sixty (60) days after the City’s notice of availability is sent via certified mail or via email. Gov. Code § 54222(e).
g. The City and an interested entity shall enter into good faith negotiations. If the parties are unable to negotiate terms during a ninety (90) day negotiation period, the City may sell the property to another party. Gov. Code 55223(a). h. Prior to agreeing to disposition terms, the City must provide HCD a description of notices of availability sent and negotiations conducted with responding entities and a copy of affordability restrictions to be recorded against the property per Gov. Code § 54233 or § 54233.5. The surplus property may not be sold until HCD’s formal approval letter is received.

The disposition of the subject property is subject to the State’s surplus property requirements.

The property is small in size, but it is larger than the minimum five thousand (5,000) square foot lot size required under the City’s Municipal Code for a single family residence. Although the property may not be zoned for single family residential use, recent changes to State law allow housing, especially low-income housing, to be constructed regardless of a property’s zoning designation under certain circumstances.

On February 14, 2022, the Planning Commission determined that the sale of the surplus property is consistent with the City’s 2035 General Plan adopted October 7, 2014.

Specifically, the Planning Commission determined the proposed sale of the lot and its development as affordable housing is consistent with the following sections of the General Plan:

LU-P3.1: Neighborhood Housing Mix – The City shall encourage mixed use neighborhoods to have a variety of housing types and densities to help create an overall healthy, balanced community.

LU-P.3.10: Affordable Housing – The City shall encourage the development of affordable housing to ensure that a variety of housing options are available to all income, age and cultural groups.

ENVIRONMENTAL ASSESSMENT:

Pursuant to Section 15312 of the California Environmental Quality Act Guidelines (CEQA), the sale of surplus government property is exempt from further environmental review.

STAFF RECOMMENDATION:

CITY ATTORNEY REVIEW/COMMENTS: ☐Yes ☒N/A
IS ADDITIONAL (NON-BUDGETED) FUNDING REQUIRED: ☐Yes ☐No ☒N/A FUNDING SOURCE/ACCOUNT NUMBER:

N/A
Submitted by: Traci Myers Title: Community & Economic Development Director Date: March 7, 2022 City Manager Approval: ____________ ATTACHMENTS:

Attachment 1 – Resolution 2022-09
Attachment 2 – Notice of Exemption
RESOLUTION 2022-09

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TULARE
DECLARING 7500 SF OF CITY-OWNED PROPERTY AT THE SOUTHWEST

CORNER OF CARTMILL AVENUE AND AKERS STREET AS SURPLUS PROPERTY WHEREAS, the City of Tulare owns real property at the southwest corner of Cartmill Avenue and Akers Street, (APN 166-240-003); and WHEREAS, the property was originally part of a small airport used for crop dusting activities, which was acquired by the Redevelopment Agency of the City of Tulare for remediation; and
WHEREAS, following remediation, the City retained the property for needed right-of-way associated with the Cartmill Avenue interchange project and future extension of Akers Street south of Cartmill Avenue; and WHEREAS, the Cartmill Interchange project has since completed and the City has converted the portion of the property needed from the extension of Akers Street to street right-of-way. The remainder of the parcel is approximately 7,500 square feet; and WHEREAS, the adjacent property owner to the west (Bud Mouw) is in the process of developing his property and has expressed an interest in obtaining the remainder of the City parcel; and
WHEREAS, the City of Tulare has no other plans to develop or utilize the property; and
WHEREAS, as of January 1, 2021, the California Housing and Community Development Department was required to begin enforcing guidelines of the California Surplus Land Act, which includes the process for declaring City owned property as surplus, reviewing each jurisdiction’s notices of availability sent, negotiations conducted with any responding entities and review of written findings of the local agency; and WHEREAS, pursuant to Government Code section 54222, prior to disposing of or participating in negotiations to dispose of surplus property, the City must provide a written notice of availability to all specified agencies and entities having jurisdiction over the following: development of low- and moderate-income housing, open space, and school facilities construction or school district open space; and WHEREAS, on February 14, 2022, the Planning Commission determined that the sale of the surplus property is consistent with the City’s 2035 General Plan adopted October 7, 2014.

NOW, THEREFORE, BE IT RESOLVED, the Council of the City of Tulare, as follows, to wit:

RESOLUTION 2022-09 Page 2
Section 1. The City Council of the City of Tulare hereby declares the property to be surplus.

Section 2. The City Manager is hereby authorized and directed to send a written offer (“Surplus Property Notice”) to sell or lease the property to those public agencies identified in Government Code Section 54222.

Section 3. The City Manager shall, in accordance with surplus property provisions of the Government Code, negotiate the terms of sale or lease of the property with any public agency that responds to the Surplus Property Notice and expresses an interest in the property.

Section 4. If no agency or entity that receives the Surplus Property Notice desires to purchase the property or if the City is unable to successfully negotiate a sale with an interested agency or entity, the City Manager is hereby authorized and directed to negotiate the sale of the property to a private party.

Section 5. The City Manager is directed to provide the City Council, for its review and approval, those terms that the City Manager negotiates in accordance with this Resolution.

PASSED, APPROVED, AND ADOPTED this 15th day of March, 2022.

President of the Council and Ex-Officio
Mayor of the City of Tulare
RESOLUTION 2022-09 Page 3
ATTEST:

STATE OF CALIFORNIA )
COUNTY OF TULARE ) ss.

CITY OF TULARE )
I, Marc Mondell, City Clerk of the City of Tulare, do hereby certify the foregoing is the full and true Resolution 2022-09 passed and adopted by the Council of said city at a regular meeting held on March 15, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINING:

Marc Mondell, City Clerk
By: Melissa Hermann, Chief Deputy City Clerk

CITY OF TULARE

AGENDA ITEM TRANSMITTAL SHEET
Submitting Department: Community & Economic Development For Council Meeting of: March 15, 2022
Documents Attached: ☐Ordinance ☐Resolution ☒Other ☐None AGENDA ITEM:

Adopt Resolution 2022-10 authorizing the City of Tulare to apply to the California Department of Housing and Community Development (HCD) for HOME Investment Partnerships Program (“HOME”) funds not to exceed $1,500,000 to implement the following three (3) activities: FirstTime Homebuyer (with or without Rehabilitation) Program that will supply down payment and closing cost assistance, an Owner-Occupied Housing Rehabilitation Program to eligible lowincome families within the City of Tulare, and a Tenant Based Rental Assistance to provide rent subsidies and/or security deposits to eligible households for a minimum term of six months; adopt Resolution 2022-11 approving the program guidelines; and authorize the City Manager or his/her designee(s) to execute a standard agreement, any amendments thereto, and any and all other documents or instruments necessary or required by HCD for participation in the HOME program.

IS PUBLIC HEARING REQUIRED: ☐Yes ☒No
BACKGROUND/EXPLANATION:

On December 1, 2022, HCD released a NOFA announcing the availability of HOME Program funds of approximately $72 million from the 2020/2021 funding allocation. Competitive applications are due on March 30, 2022.

Eligible activities predominantly benefit low- and moderate-income Californians and include:

1. Rental Projects (rental new construction and rental rehabilitation);

2. First-Time Home Buyer (FTHB) Projects (construction financing and homebuyer mortgage assistance only).

1. One rental project and one FTHB project, or

2. One rental project and any combination of eligible Program Activities, or

3. One FTHB project and any combination of eligible Program Activities, except for a FTHB program.

AGENDA ITEM: Consent 6
Applicants applying for Project can apply for up to $7 million. The minimum application amount for any single program is $300,000 with max of $2 million, dependent on the current expenditure rate of awards received in 2015, 2016 and 2018. 2019 Awards will not count toward the expenditure rate calculation. An applicant does not have to have 50% of existing awards expended to be eligible but will be limited to $700,000 as their max funding amount if they have not.

The city currently has 4 households on a waiting list for owner-occupied housing rehabilitation.

Job costs range from $85,000 to $250,000 per unit depending on the extent of the repairs required. In addition, the city continues to receive interest in the City’s First-Time Homebuyer Program. First-Time Homebuyer Loans an average $100,000 per unit.

The City proposes to apply for CDBG funds for the following projects:

Owner Occupied Housing Rehab $ 600,000
General Administration (up to 2.5% of activity funds awarded) First-Time Homebuyer Acquisition with rehabilitation $ 600,000 General Administration (up to 2.5% of activity funds awarded) Tennant Based Rental Assistance $ 300,000
General Administration (up to 2.5% of activity funds awarded) Total $1,500,000
The Proposed Owner-Occupied Rehabilitation program guidelines provides funding to homeowners with household incomes at or below 80% of the area median income (AMI) to fund home repairs for the correction of items which jeopardize the health and safety of the occupants. Units being assisted must be clear of all code violations and all major components of the unit must have a useful life of five years upon completion of work. All work must be performed by a licensed contract and meet building code standards. Units are eligible for reconstruction when the cost to repair the unit exceeds the cost to construct a new unit in its place. Reconstructed units must be replaced by a like unit, no additions of bedrooms or bathrooms are allowed unless justified due to overcrowding. Financing is provided up to the maximum allowed per bedroom as provided by HUD. Properties after-rehabilitation value may not exceed the maximum purchase price/value limit set by HUD annually. Financing is provided as deferred payment, zero interest loans, with a 30-year term, due and payable upon sale or transfer of title.

These funds would help offset any staff time used to complete annual reports and general contract management. The City’s oversight commitments would be minimal, mostly booking yearly accrued interest to the soft loan, since the project will be income certified and monitored through the tax credit program. SHE will provide all information needed for reporting purposes.

STAFF RECOMMENDATION:

CITY ATTORNEY REVIEW/COMMENTS: ☐Yes ☒N/A
IS ADDITIONAL (NON-BUDGETED) FUNDING REQUIRED: ☐Yes ☒No ☐N/A FUNDING SOURCE/ACCOUNT NUMBER:

HOME Program Grant(s) and Program Income Funds (Fund 076) Submitted by: Traci Myers Title: Community & Economic Development Director Date: March 9, 2022 City Manager Approval: ____________ Attachments:

Resolution 2022-10 Approval to Submit an ‘Activities’ Application to 2021 HOME NOFA Resolution 2022-11 Approval of Program Guidelines for Homebuyer Acquisition Only/Acquisition with Rehabilitation and Housing Rehabilitation Activities
Revised Program Guidelines – Template - Homebuyer Acquisition Only/Acquisition with Rehabilitation Activity
Revised Program Guidelines – Template – Housing Rehabilitation Activity RESOLUTION 2022-10

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TULARE

AUTHORIZING SUBMITTAL OF AN APPLICATION TO THE CALIFORNIA

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR FUNDING UNDER THE HOME INVESTMENT PARTNERSHIPS PROGRAM; AND IF

SELECTED, THE EXECUTION OF A STANDARD AGREEMENT, ANY

AMENDMENTS THERETO, AND OF ANY RELATED DOCUMENTS NECESSARY TO PARTICIPATE IN THE HOME INVESTMENT PARTNERSHIPS PROGRAM.

WHEREAS, the California Department of Housing and Community Development (the “Department”) is authorized to allocate HOME Investment Partnerships Program (“HOME”) funds made available from the U.S. Department of Housing and Urban Development (“HUD”). HOME funds are to be used for the purposes set forth in Title II of the Cranston-Gonzalez National Affordable Housing Act of 1990, in federal implementing regulations set forth in Title 24 of the Code of Federal Regulations, part 92, and in Title 25 of the California Code of Regulations commencing with section 8200.; and
WHEREAS, on December 1, 2021, the Department issued a Notice of Funding Availability announcing the availability of funds under the HOME program (the “NOFA”); and
WHEREAS, in response to the December 2021 HOME NOFA, City of Tulare, a Municipal Corporation (the “Applicant”), wishes to apply to the Department for, and receive an allocation of, HOME funds.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Tulare, as follows, to wit:

Section 1. In response to the December 2021 HOME NOFA, the Applicant shall submit an application to the Department to participate in the HOME program and for an allocation of funds not to exceed One Million, Five Hundred Thousand Dollars ($1,500,000) for the following activities and/or programs:

Owner-Occupied Rehabilitation Program $600,000
First Time Homebuyer Program $600,000
Tennant Based Rental Assistance Program $300,000
to be located in City Limits of Tulare.

Section 2. If the application for funding is approved, then the Applicant hereby agrees to use the HOME funds for eligible activities in the manner presented in its application as approved by the Department in accordance with the statutes and regulations cited above. The Applicant may also execute a Standard Agreement, any
amendments thereto, and any and all other documents or
RESOLUTION 2022-10 Page 2
instruments necessary or required by the Department or HUD for participation in the HOME program (collectively, the required documents).

Section 3. The Applicant authorizes City Manager or their designee(s) to execute, in the name of the Applicant, the required documents.

PASSED, APPROVED, AND ADOPTED this 15th day of March, 2022.

President of the Council and Ex-Officio
Mayor of the City of Tulare
RESOLUTION 2022-10 Page 3
ATTEST:

STATE OF CALIFORNIA )
COUNTY OF TULARE ) ss.

CITY OF TULARE )
I, Marc Mondell, City Clerk of the City of Tulare, do hereby certify the foregoing is the full and true Resolution 2022-10 passed and adopted by the Council of said city at a regular meeting held on March 15, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINING:

Marc Mondell, City Clerk
By: Melissa Hermann, Chief Deputy City Clerk
RESOLUTION 2022-11

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TULARE

APPROVING GUIDELINES FOR THE HOUSING REHABILITATION PROGRAM AND

HOMEBUYER ACQUISITION ONLY/ACQUISITION WITH REHABILITATION

PROGRAM
WHEREAS, the City of Tulare, a political subdivision of the State of California, has established Program Guidelines which govern the administration of its Housing Rehabilitation Program and its Homebuyer Acquisition Only/Acquisition with Rehabilitation Program; and
WHEREAS, the City desires to approve the Guidelines for the Housing Rehabilitation Program and Homebuyer Acquisition Only/Acquisition with Rehabilitation Program to comply with HCD requirements.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Tulare, as follows, to wit:

Section 1. The City approves the updated Guidelines for the Housing Rehabilitation Program and Homebuyer Acquisition
Only/Acquisition with Rehabilitation Program.

PASSED, APPROVED, AND ADOPTED this 15th day of March, 2022.

President of the Council and Ex-Officio
Mayor of the City of Tulare
RESOLUTION 2022-11 Page 2
ATTEST:

STATE OF CALIFORNIA )
COUNTY OF TULARE ) ss.

CITY OF TULARE )
I, Marc Mondell, City Clerk of the City of Tulare, do hereby certify the foregoing is the full and true Resolution 2022-11 passed and adopted by the Council of said city at a regular meeting held on March 15, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINING:

Marc Mondell, City Clerk
By: Melissa Hermann, Chief Deputy City Clerk
Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
1 NAME OF STATE

RECIPIENTCITY OF TULARE

SINGLE-FAMILY HOUSING

REHABILITATION

ASSISTANCE PROGRAMS
(HOME, CDBG, CalHome)

PROGRAM DESIGN AND PROCESS

HCD Version 2/2022
CalHome Approved (date)
CDBG Approved (date)
HOME Approved (date)
Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
2 NAME OF STATE RECIPIENTCITY OF TULARE

HOUSING REHABILITATION

PROGRAM GUIDELINES

TABLE OF CONTENTS

1.0. GENERAL

1.1. PROGRAM OUTREACH AND MARKETING

1.2. APPLICATION PROCESS AND SELECTION

1.3. LOAN PROCESS

1.4. CONFLICT OF INTEREST REQUIREMENTS

2.0. APPLICANT QUALIFICATIONS

2.1. INCOME LIMITS

2.2. INCOME QUALIFICATION CRITERIA

2.3. HOMEOWNER ELIGIBILITY & RESIDENCY REQUIREMENTS

3.0. PROPERTY ELIGIBLITY

3.1. CONDITIONS

3.2. ANTI-DISPLACEMENT POLICY AND RELOCATION ASSISTANCE

3.3. NOTIFICATIONS AND DISCLOSURES

4.0. THE PROGRAM LOAN

4.1. MAXIMUM AMOUNT OF PROGRAM ASSISTANCE

4.2. AFFORDABILITY PARAMETERS FOR HOMEOWNERS

4.3. RATES AND TERMS

4.4. GRANTS

4.5. APPRAISAL

4.6. INSURANCE

5.0. PROGRAM LOAN SERVICING AND MAINTENANCE

5.1. PAYMENTS ARE VOLUNTARY

5.2. RECEIVING LOAN REPAYMENTS

5.3. LOAN SERVICING POLICIES AND PROCEDURES

5.4. LOAN MONITORING PROCEDURES

5.5. DEFAULT AND FORECLOSURE

5.6. SUBORDINATIONS

6.0. CONSTRUCTION

6.1. STANDARDS

6.2. ELIGIBLE CONSTRUCTION COSTS

6.3. ELIGIBLE PROJECT COSTS

6.4. REPAIR CALLBACKS

7.0. EXCEPTIONS AND SPECIAL CIRCUMSTANCES

7.1. AMENDMENTS

7.2. EXCEPTIONS

8.0. DISPUTE RESOLUTION AND APPEALS PROCEDURES

8.1. PROGRAM COMPLAINT AND APPEAL PROCEDURE

8.2. GRIEVANCES BETWEEN PARTICIPANTS AND CONSTRUCTION

CONTRACTOR
Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
3 NAME OF STATE RECIPIENTCITY OF TULARE

HOUSING REHABILITATION

PROGRAM GUIDELINES

ATTACHMENTS TABLE OF CONTENTS
ATTACHMENT A: 24 CFR PART 5 ANNUAL INCOME INCLUSIONS AND EXCLUSIONS – FOR CDBG & HOME
ATTACHMENT A-1: TITLE 25 SECTION 6914 GROSS INCOME INCLUSIONS – FOR

CALHOME
ATTACHMENT B: ANNUAL INCOME NET FAMILY ASSET INCLUSIONS AND EXCLUSIONS – FOR CDBG & HOME
ATTACHMENT B-1:TITLE 25 SECTION 6914 GROSS INCOME EXCLUSIONS – FOR

CALHOME
ATTACHMENT C: HOME PROGRAM HOMEOWNERSHIP VALUE LIMITS; HOME PER-UNIT SUBSIDY LIMITS; CURRENT INCOME LIMITS;

BEDROOM & BATHROOM ADDITION STANDARDS
ATTACHMENT D: MARKETING PLAN
ATTACHMENT E: RESIDENTIAL ANTIDISPLACEMENT AND RELOCATION

ASSISTANCE PLAN
ATTACHMENT F: LOAN SERVICING POLICIES AND PROCEDURES
ATTACHMENT G: FORECLOSURE POLICY
ATTACHMENT H: CERTIFICATION OF OCCUPANCY
ATTACHMENT I: LEAD-BASED PAINT NOTICE OF PRESUMPTION AND HAZARD

REDUCTION FORM
Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
4 NAME OF STATE RECIPIENTCITY OF TULARE

HOUSING REHABILITATION

PROGRAM GUIDELINES
Adopted date

1.0. GENERAL
The above-named entity, hereinafter referred to as the “Sponsor”, has entered into a contractual relationship with the California Department of Housing and Community Development (“HCD”) to administer one or more HCD-funded housing rehabilitation programs. The rehabilitation program described herein and hereinafter referred to as the “Program” is designed to provide assistance to eligible homeowners for correction of health and safety items, as well as code violations, located within the Program’s eligible area, as described in Section 3.0. The Program provides this assistance in the form of deferred payment loans used to finance the cost of necessary repairs that will provide the homeowner with a healthy, safe, sanitary and code compliant home, referred to herein as “housing unit”. The Program will be administered by name of subrecipient or admin subSelf-Help Enterprises, hereinafter referred to as the “Program Operator”.

1.1. PROGRAM OUTREACH AND MARKETING
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. No person shall, on the grounds of age, ancestry, color, creed, physical or mental disability or handicap, marital or familial status, medical condition, national origin, race, religion, gender or sexual orientation, be excluded, denied benefits or subjected to discrimination under the Program. The Sponsor will ensure that all persons, including those qualified individuals with handicaps have access to the Program.

A Fair Housing Marketing Plan can be found as Attachment D. Flyers or other outreach materials, in English and any other language that is the primary language of a significant portion of the area residents, will be widely distributed in the Programeligible area and will be provided to any local social service agencies. The Program may sponsor homeownership education classes to help educate homeowners about credit, budgeting, predatory lending, foreclosure prevention and home maintenance, as well as future responsibilities.

B. 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 Program Sponsor will take appropriate steps to Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
5 ensure effective communication with disabled housing applicants, residents and members of the public.

1.2. APPLICATION PROCESS AND SELECTION
A. Waiting List/Homeowner Contact
The Sponsor will utilize a waiting list. In response to a homeowner’s request, the homeowner is placed on the waiting list. Homeowners are offered the opportunity to qualify for assistance by waiting list priority (a first-come, first served basis).

The Program Operator will contact homeowners by mail and/or by telephone to advise of funding availability. The homeowner has 30 days to complete and return the loan application and supporting documentation. Should a homeowner fail to respond to the initial contact for assistance or to provide any of the required documentation within the 30-day period, the homeowner’s name will be removed from the waiting list. If the homeowner desires assistance at a later time, he/she will be placed on the waiting list at that time.

Should the waiting list be exhausted, the Program will be marketed in accordance with the Sponsor’s Marketing Plan. See Attachment D.

B. Application/Interview
An application packet is provided to the homeowner for completion and submittal to the Program Operator, along with supporting documentation. An interview is scheduled with the applicant. The Program is fully explained; application forms and documentation are reviewed. Verifications are obtained for income, assets, employment, benefits, and mortgage. Title report and appraisals are also obtained.

If the Program Operator encounters material discrepancies and/or misrepresentations, and/or there are income, asset, household composition, or other important questions that can't be resolved, the Sponsor reserves the right to deny assistance to the household. In this case, the applicant may re-apply after six months have elapsed from the time of written assistance denial.

C. Household Selection
Households selected for participation in the Sponsor’s Housing Rehabilitation Program are those determined eligible upon completion of processes described in A. and B. above.

D. Initial Inspection/Work Write-Up/Estimate
Prospective units are inspected by the Program Operator, a certified housing inspector, or a Sponsor representative to determine eligibility and acceptability of properties for participation in the Program.

Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
6 If the home is a pre-1978 unit, the initial inspection will also include paint testing by a certified Lead-Based Paint (LBP) inspector/assessor or presumption of LBP.

Code deficiencies will be corrected and if presumption is used or lead hazards are found they will be properly treated according to HUD regulations (Section 6.1.E & F) and cleared by a certified LBP inspector/assessor. Note: CalHome-funded projects do not require LBP compliance. CDBG projectsshall refer to Chapter 20, Lead-Based Paint Requirements for guidance in the CDBG Grant Management Manual.

Measurements and observations are noted about the property, including special conditions with potential cost consequences (dilapidated outbuildings, absence of curb and gutter when required by code, etc.). A floor plan and site plan, as needed, are drawn for the home and property, including all appurtenances.

Findings are noted on an inspection form, and later used by the Program Operator to prepare the work write-up. Estimated costs are determined by the Program Operator who has years of experience in the building industry, and in reviewing contractor bids and verifying cost with materials suppliers. The homeowner reviews the completed work write-up and cost estimate, and the approved write-up is incorporated into bid documents.

E. Bid Solicitation
A bid walk-through date and time are scheduled. The homeowner may choose to solicit his/her own bids or request that the Program Operator solicit bids on his/her behalf. Invitations to bid are mailed to all eligible contractors selected by the homeowner from the Active Contractor List provided by the Program Operator in efforts to obtain three reasonable bids. Homeowners are required to select a minimum of six contractors from the Active Contractor List and may add to the list as long as the contractor meets the requirements outlined in the Housing Rehabilitation/Reconstruction Program Contractor Guidelines and Information Sheet (see Attachment K). Contractors will be notified via telephone and/or in writing (email, fax, etc.) at least one week prior to each bid tour. Bid results will be provided to participating contractors.

Contractors must be licensed and bonded by the State of California Contractors Licensing Board. Contractors must also provide Program Operator with evidence of Workers’ Compensation Insurance and Comprehensive General Liability and Property Damage Insurance with Combined Single Limits of at least $1,000,000.

Recruitment for eligible contractors is done on an ongoing basis, via local advertising, website notification, and program marketing. It is the goal of the Program Operator to maintain an Active Contractor List of eligible, interested contractors located in the Sponsor’s County. Applications are available for those seeking to participate by calling the Program Operator or visiting the Program Operator’s website. The Program Operator will send notices to contractors on the Active Contractor List annually, which will request each contractor contact the Program Operator to confirm his or her interest in remaining on the Active Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
7 Contractor List. Contractors who do not respond will be moved to the Inactive Contractor List.

Cost reasonableness is determined by comparing the bids received with the cost estimate prepared by the Program Operator. Bids should be within 10% of the Program Operator’s cost estimate, otherwise an explanation must be provided to the file for any bid selected exceeding 10% of the estimate. The homeowner is encouraged to accept the lowest reasonable bid.

The Program Operator determines eligibility of the contractor by contacting the State Contractors License Board and checking the Federal List of Debarred Contractors. The contractor is also required to provide a self-certification stating that he/she is not on the Federal debarred list. Once determined eligible, the contractor is then notified of provisional award of bid (pending loan approval).

Notices of non-award are mailed to participating contractors.

F. Loan Request/Approval
A report and loan request are prepared on behalf of the homeowner by the Program Operator. The loan request includes the cost of construction, a contingency fund, and other project costs (listed in Section 6.3.). Note: For HOME and CDBG, the project costs listed in Section 6.3 are considered activity delivery costs to be paid by the Sponsor and may not be charged to the homeowner’s loan. A Loan Review Committee meeting is scheduled to hear the loan request. Section 1.3 provides additional information on the loan approval process. Once approved, loan documents are executed and the loan is funded.

G. Pre-Construction Conference
A pre-construction conference is scheduled with homeowner, contractor, and Program Operator. The Program Operator reviews the Owner-Contractor Construction Contract, including the work write-up, start date, pay schedule, and date of completion, with the homeowner and contractor. The construction contract and Notice to Proceed are executed.

H. Start-Up/Field Inspections
The Program Operator monitors date of start-up and performs field inspections on a regular basis. The Program Operator will visit the job site regularly in order to check the scope of work, inspect materials, and to confirm the job is on schedule and within budget. The Program Operator works with the Sponsor’s Building Inspector to ensure the work meets building codes, while not exceeding funding limits.

The Program Operator reviews the work status with the homeowner and with 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, Name of State RecipientCity of Tulare
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8 the Program Operator inspects the work and the homeowner authorizes contractor payments.

The Program Operator will refer back to original plans and specifications to verify the work was completed as contracted.

I. Change Orders
Written change orders are required when the homeowner requests any changes in the write-up, such as eliminating an item completely, eliminating one item and substituting another, or adding items. The change order will state the change and dollar value for the change. The change order must be signed by both the contractor and the homeowner, and submitted to the Program Operator for approval. If the change order exceeds the approved financing, the homeowner will be asked to provide additional funds or a report and request for additional funds may be presented to the Sponsor’s Loan Review Committee for approval prior to Program Operator signing-off on the change order.

J. Progress Payments
Ninety percent (90%) of the contract amount is distributed to the contractor in the form of progress payments during construction. The final ten-percent (10%) of the contract amount is set aside as a retention payment. The contractor requests a progress payment from the homeowner and notifies the Program Operator that he/she has done so. Upon favorable inspection by the homeowner, Program Operator, and Sponsor or Sponsor’s Building Inspector, the payment authorization is signed by the homeowner and submitted for payment.

K. Final Inspections/Notice of Completion/Final Payment When the project is completed, the Program Operator inspects the work item by item with the homeowner, the contractor, and/or the Sponsor. The Sponsor’s Building Inspector performs a final inspection. Any corrections or deficiencies are noted and corrected by the contractor. Upon favorable final inspections, a Notice of Completion is prepared, signed by the homeowner, and then recorded. The final ten-percent (10%) retention payment is released 35 days after the recording of the Notice of Completion.

1.3. LOAN PROCESS
The Sponsor’s Loan Review Committee must approve all loans and grants. The Loan Review Committee may approve assistance with CDBG financing exceeding 100 percent of after-rehabilitation value as needed in cases where no other financial resources are available to cover the cost of the repairs and where clear and convincing documentation exists, justifying why the exception is needed.

However, if the project is CalHome-funded, the total financing cannot be more than 105 percent of the after- rehabilitation value. For HOME-funded loans, the total financing Name of State RecipientCity of Tulare
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9 cannot be more than 100 percent of the after-rehabilitation value, unless per HOME Management Memorandum 13-01 at http://www.hcd.ca.gov/grants-funding/activefunding/home.shtml#memos the entire HOME assistance amount is granted rather than loaned, due to a lack of any equity after rehabilitation, based on existing loans on the property and an after-rehabilitation value appraisal. In addition, the amount of HOME assistance, including Sponsor’s claimed Activity Delivery Costs, cannot exceed the Sponsor’s County HOME Per-Unit Subsidy Limits at http://www.hcd.ca.gov/grantsfunding/income-limits/state-and-federal-income-limits.shtml, and the after-rehabilitation value cannot exceed the HOME Homeownership Value Limits. See Attachment C for current limits.

In order to obtain financing, applicants must meet all property and eligibility guidelines in effect at the time the application is considered. Homeowners will be provided written notification of approval or denial. Any reason for denial will be provided to the applicant in writing.

1.4. CONFLICT OF INTEREST REQUIREMENTS
When the Sponsor’s program contains Federal funds, the applicable Conflict of Interest requirements of 24 CFR Section 570.611 shall be followed for CDBG assistance. Section

92.356 of the HOME Final Rule shall be followed for HOME assistance. For CalHomefunded Programs, the applicable Conflict of Interest requirements of Public Contract Code sections 10410, 10411, and 10430 (e) shall be followed.

For HOME assistance, Section 92.356 of the HOME Final Rule shall be followed, as follows:
(a) Conflicts prohibited. No persons described in paragraph (b) of this section who exercises or has exercised any functions or responsibilities with respect to activities assisted with HOME funds or who are in a position to participate in a decision making process or gain inside information with regard to these activities, may obtain a financial interest or benefit from a HOME-assisted activity, or have a financial interest in any contract, subcontract or agreement with respect to the HOME-assisted activity, or the proceeds from such activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for one year thereafter. Immediate family ties include (whether by blood, marriage or adoption) the spouse, parent (including stepparent), child (including stepchild), brother, sister (including a stepbrother or stepsister), grandparent, grandchild and in-laws of a covered person. (b) Persons covered. The conflict of interest provisions of paragraph (a) of this section apply to any person who is an employee, agent, consultant, officer, or elected official or appointed official of the participating jurisdiction, State recipient, or subrecipient which are receiving HOME funds.
(c) Exceptions: Threshold requirements. Upon the written request of the participating jurisdiction to HCD, HUD may grant an exception to the provisions of paragraph (a) of this section on a case-by-case basis when it determines that the exception will serve to further the purposes of the HOME Investment Partnerships Program and the effective and Name of State RecipientCity of Tulare
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10 efficient administration of the participating jurisdiction's program or project. See 24 CFR

92.356(d)(1-6) for details on the documentation needed in order to submit an exception request to HUD.

A contractor with a vested interest in the property cannot bid on a rehabilitation job. Such a contractor may act as owner/builder, subject to standard construction procedures.

Owner/builders are reimbursed for materials purchased which are verified by invoice/receipt and used on the job. Reimbursement occurs after the installation is verified by the Program Operator to be part of the scope of work. Owner/builders are not reimbursed for labor.

2.0. APPLICANT QUALIFICATIONS

2.1. INCOME LIMITS
All homeowners must certify that they meet the household income eligibility requirements for the applicable HCD program(s) and have their household income documented. The income limits in place at the time of loan approval will apply when determining applicant income eligibility. All applicants must have incomes at or below 80% of the County’s area median income (AMI), adjusted for household size, as published by HCD each year. See Attachment C.

The link to the official HCD-maintained income limits for HOME- and CDBG-funded activities is: http://www.hcd.ca.gov/grants-funding/income-limits/state-and-federalincome-limits.shtml (for HOME and CDBG, choose “State CDBG, HOME and NHTF – Income, Value and Rent Limits”; for CalHome-funded activities choose “Official State Income Limits”).

Household: means one or more persons who will occupy a housing unit. Unborn children count in family size determination. For CalHome, unborn children are not counted.

Annual Income: Generally, the gross amount of income of all adult household members that is anticipated to be received during the coming 12-month period.

2.1.1 OWNER-OCCUPIED REQUIREMENTS
Owner-Occupant - to be eligible, household income must be equal to or less than the applicable HCD income limits. Owner will be required to provide income documentation.

Refer to Income Inclusions and Exclusions for further guidance to the types of incomes to be included or excluded when calculating gross annual income. See Attachment A for HOME and CDBG. See Attachment A-1 for CalHome. Refer to Asset Inclusions and Exclusions for further guidance to the types of assets to be included or excluded when calculating gross annual income. See Attachment B.

Owner-occupants housing and/or debt ratios are not considered, nor is a credit report required, as the funding provided creates no additional monthly financial obligation. If an owner-occupant has a mortgage, it is verified that all payments are current and that no late payments have been received in the past twelve months.

Name of State RecipientCity of Tulare
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11 2.2. INCOME QUALIFICATION CRITERIA
Projected annual gross income of the applicant household will be used to determine whether they are above or below the published HCD income limits. Income qualification criteria for HOME and CDBG, as shown in the most recent HCD program-specific guidance at http://www.hcd.ca.gov/grants-funding/income-limits/income-calculation-anddetermination-guide.shtml, will be followed to independently determine and certify the household’s annual gross income. Income will be verified by reviewing and documenting tax returns, copies of wage receipts, subsidy checks, bank statements and third-party verification of employment forms sent to employers. All documentation shall be dated within six months prior to loan closing and kept in the applicant file and held in strict confidence.

A. HOUSEHOLD INCOME DEFINITION:

Household income is the annual gross income of all adult household members that is projected to be received during the coming 12-month period, and will be used to determine program eligibility. Refer to Income Inclusions and Exclusions for further guidance to the types of incomes to be included or excluded when calculating gross annual income. For those types of income counted, gross amounts (before any deductions have been taken) are used. Two types of income that are not considered would be income of minors and of live-in aides. Certain other household members living apart from the household also require special consideration. The household’s projected ability to pay must be used, rather than past earnings, when calculating income.

Housing and/or debt ratios are not considered as the funding provided creates no additional monthly financial obligation. If a homeowner has a mortgage, creditworthiness is verified by ensuring that all payments are current and that no late payments have been received in the past twelve months.

See Attachment A: HOME and CDBG 24 CFR Part 5 Annual Income Inclusions and Exclusions and Attachment A-1: CalHome Title 25 Section 6914 Annual Income inclusions and Exclusions (State)
B. ASSETS:

There is no asset limitation for participation in the Program. Income from assets is, however, recognized as part of annual income under the Part 5 definition. An asset is a cash or non-cash item that can be converted to cash. The value of necessary items such as furniture and automobiles are not included. (Note: it is the income earned – e.g. interest on a savings account – not the asset value, which is counted in annual income.)
An asset’s cash value is the market value less reasonable expenses required to convert the asset to cash, including: Penalties or fees for converting financial Name of State RecipientCity of Tulare
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12 holdings and costs for selling real property. The cash value (rather than the market value) of an item is counted as an asset.

See Attachment B: Part 5 Annual Income Net Family Asset Inclusions and Exclusions

2.3. HOMEOWNER ELIGIBILITY AND RESIDENCY REQUIREMENTS
The Sponsor’s Housing Rehabilitation Program allows for owner-occupied properties to participate in the Program. Owner-occupied units must be the owner’s principal place of residence. A photocopy of a recent utility bill will verify proof of occupancy. No unit to be rehabilitated will receive financial assistance if it is currently occupied by an overincome household or does not meet the eligibility standards outlined in these guidelines.

2.3.1 OWNER-OCCUPIED
A. Continued residency is monitored annually per Attachment F for the term of the loan. Occupancy will be verified by the submission of the following:

1. Proof of occupancy in the form of a copy of a current utility bill; and

2. Statement of unit's continued use as primary residence of the owner.

B. In the event that an homeowner sells, transfers title, or discontinues residence in the rehabilitated property for any reason, the loan becomes due and payable, unless the following conditions are met:

The homeowner who received the loan dies and the heir to the property meets income requirements and intends to occupy the home as his/her principal residence.

Upon approval of the Sponsor, the heir may be permitted to assume the loan at the rate and terms the heir qualifies for under current participation guidelines. If the heir does not meet applicable eligibility requirements, the loan is due and payable.

Note: Loans provided by CalHome are not assumable.

C. If a homeowner converts the property to a rental unit, or any commercial or nonresidential use, the loan is due and payable, unless the loan was funded with CDBG and tenant and homeowner meet eligibility requirements as described in Section

2.3.2. below.

If the loan is funded with a CalHome Loan it is not transferable except under the following limited circumstances:
(a) The transfer of the Property to the surviving joint tenant by devise, descent or operation of the law, on the death of a joint tenant;
(b) A transfer of the Property where the spouse becomes an owner of the property; Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
13 (c) A transfer of the Property resulting from a decree of dissolution of marriage, legal separation or from an incidental property settlement agreement by which the spouse becomes an owner of the Property; or
(d) A transfer to an inter vivos trust in which the Borrower is and remains the beneficiary and occupant of the property.

3.0. PROPERTY ELIGIBILITY

3.1. CONDITIONS
A. No unit will be eligible if a household’s income exceeds the prescribed income limits listed in Attachment C.

B. Units to be rehabilitated must be located within the CHOOSE ONE BY DELETING THE OTHER  incorporated/unincorporated areas of the Sponsor’s jurisdiction.

C. Property must contain a legal residential structure intended for continued residential occupancy.

D. All repair work will meet Local Building Code standards. At a minimum, health and safety hazards must be eliminated. For CDBG the priority will be the elimination of health and safety hazards. Sponsor may also require elimination of code deficiencies. When HOME funds are used for housing rehabilitation, the property must meet all applicable current codes, rehabilitation standards, ordinances, and zoning ordinances at the time of project completion. However, if certain components of the house are sound and were built to code prescribed at the time of installation, no repair or alteration will be made to those components.

Section 8 Housing Quality Standards may be required on rentals by Sponsor when CDBG funds are used.

3.2. ANTI-DISPLACEMENT POLICY AND RELOCATION ASSISTANCE Tenants will be informed of their eligibility for temporary relocation benefits if occupancy during rehabilitation constitutes a danger to health and safety of occupants or public danger or is otherwise undesirable because of the nature of the project. Relocated persons will receive increased housing costs, payment for moving and related expenses and appropriate advisory services, as detailed in the Sponsor's "Residential Anti-displacement and Relocation Assistance Plan" (Attachment E).

Owner-occupants are not eligible for temporary relocation benefits, unless health and safety threats are determined to exist by the Program Operator. In cases where relocation is determined to be necessary by the Sponsor/Program Operator, assistance may be provided for actual costs incurred from the applicant’s loan proceeds or as a grant (see Section 4.4. for allowable grants). HOME-funded projects will provide relocation Name of State RecipientCity of Tulare
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14 assistance in the form of a grant, which shall be included in the maximum assistance amount.

Note: Relocation benefits are not a requirement under CalHome, but are acceptable and may be covered by loan proceeds.

Name of State RecipientCity of Tulare
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15 3.3.NOTIFICATION AND DISCLOSURES - Not required by CalHome A. Occupants of units constructed prior to 1978 will receive proper notification of Lead-Based Paint (LBP) hazards as follows:

The Lead Hazard Information Pamphlet published by the EPA/HUD/Consumer Product Safety Commission will be given to all owners regardless of the cost of rehabilitation or paint test findings. If lead-based paint is found through testing or if presumed, a Notice of Lead Hazard Evaluation or Presumption will also be supplied.

When Lead hazards are present, a Notice of Lead Hazard Reduction Activity and a Lead Hazard Evaluation Report will also be provided (Attachment I).

B. Tenants located in properties that will receive housing rehabilitation will be provided a notice outlining their relocation rights and benefits (Attachment E).

4.0. THE PROGRAM LOAN

4.1. MAXIMUM AMOUNT OF PROGRAM ASSISTANCE
An eligible homeowner may qualify for the full cost of rehabilitation/reconstruction work needed to comply with State and local codes and ordinances. Maximum assistance shall not exceed the Sponsor’s County HOME Per-Unit Subsidy Limits at http://www.hcd.ca.gov/grants-funding/income-limits/state-and-federal-incomelimits.shtml.

See Attachment C for current limits. For CDBG-funded programs, the maximum assistance for rehabilitation/reconstruction will not exceed $320,000.

4.2. AFFORDABILITY PARAMETERS FOR HOMEOWNERS
A. Total indebtedness against property shall not exceed 100 percent of after-rehabilitation value as determined by “Estimates of value” or an appraisal, for CDBG or HOME projects. The exception for HOME loans is per HOME Management Memorandum 13-01 at http://www.hcd.ca.gov/grants-funding/active-funding/home.shtml#memos wherein the entire HOME assistance amount is granted rather than loaned, due to a lack of any after-rehabilitation equity based on existing loans on the property. An estimate of after-rehab value will be made prior to making a commitment of funds using the method outlined in Section 4.5. Note: This does not apply to CalHome projects.

B. HOME-funded units’ after-rehabilitation values shall not exceed the HOME Program’s Homeownership Value Limits for Sponsor’s County as updated by HUD and published on the HCD Website at http://www.hcd.ca.gov/grants-funding/income-limits/state- and-federal-income-limits.shtml. See Attachment C for current limits, which may reflect temporary waivers not published on the HCD Website.

For CalHome-funded Programs, the maximum after-rehab value of a home shall be set at 100% of the current median sales price of a single family home located in the county the CalHome Program is serving, which is established by comparable sales or information provided by the California Real Estate Association. https://www.car.org/en/marketdata/data/countysalesactivity Name of State RecipientCity of Tulare
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16 C. Total indebtedness against property shall not exceed 105 percent of the afterrehabilitation value as determined by an appraisal for CalHome projects. An estimate of After-Rehab Value will be made prior to making a commitment of funds using the method outlined in Section 4.5. Note: This does not apply to HOME or CDBG projects.

D. Costs may be supplemented with personal financing, or with other loan or grant programs, which are sources of leverage for the Sponsor.

E. Any bid within 10% of the Program Operator’s estimate may be selected, otherwise an explanation must be provided to the file for a bid selected exceeding 10% of the estimate.

4.3. RATES AND TERMS

4.3.1. OWNER-OCCUPANTS
A. Homeowners are eligible for Deferred Payment Loans (DPL), at zero interest, evidenced by a Promissory Note and secured by a Deed of Trust, with no payback required for 30 years unless the borrower sells or transfers title or discontinues residence in the dwelling.

Payments may be made voluntarily on a DPL. Note: If it is determined by the Sponsor that repayment of a CalHome or CDBG Program loan at the maturity date causes a hardship to the homeowner, the Sponsor may opt the following:

1. Amend the note and deed of trust to defer repayment of the amount due at maturity, that is balance of the original principal plus the accrued interest, for up to an additional 30 years (at 0% additional interest). This may be offered one time;

2. Convert the debt at loan maturity; that is the balance of the original principal plus any accrued interest, to an amortized loan, repayable in 15 years at 0% additional interest.

B. If the homeowner dies, and if the heir(s) to the property live(s) in the house and is/are income eligible, the heir(s) may be permitted, upon approval of the Sponsor, to assume the loan at the rate and terms the heir(s) qualifies for under current participation guidelines.

Note: CalHome loans are not assumable.

C. If the homeowner dies and the heir(s) is/are not income eligible, the loan becomes all due and payable.

D. If a homeowner converts the rehabilitated property to any residential-rental, commercial or non-residential use, the loan becomes all due and payable, unless they meet requirements outlined in Section 2.3.2.

E. As specified in the Rehabilitation Loan Agreement, all applicants who participate in the Program must maintain the property at post-rehabilitation conditions for the term of the loan. Should the property not be maintained accordingly, the loan shall be considered in default and becomes all due and payable, and if necessary, foreclosure proceedings will be initiated. A method of inspection will be established by the Sponsor.

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17 F. For CalHome, loans are not assumable. The following transfers of interest shall not require the repayment of the CalHome Program loan:
1) transfer to a surviving joint tenant by devise, descent, or operation of law on the death of a joint tenant;
2) a transfer in which the transferee is a person who occupies or will occupy the property, which is:
(i) a transfer where the spouse becomes an owner of the property; (ii) a transfer resulting from a decree of dissolution of marriage, legal separation agreement, or from an incidental property settlement agreement by which the spouse becomes an owner of the property; or (iii) a transfer into an inter vivos trust in which the Borrower is and remains the beneficiary and occupant of the property.

4.4. GRANTS
A. CDBG-funded programs may provide grants as follows:

1. A grant of up to $5015,000 is available for any one of the following qualifying factors:
a) Senior Citizen - at least 62 years old; or
b) Handicapped – for only handicap modifications to a house with one or more physically handicapped occupants who would function more independently if such modifications were installed; or
c) Lowest Targeted Income Group – with gross annual income less than 50 percent of County median income; or
d) Equity maintenance up to $25,000 – if financing rehabilitation entirely with a loan would cause indebtedness to exceed 100% of afterrehabilitation value; or e) Curb, gutter and sidewalk – when curb, gutter and/or sidewalk are required by City code; or
f) Building permit, school fees, appraisals, property report/title insurance, building permits, termite report, land survey, grading plans, recording fees and/or flood insurance; or
g) Emergencies – failure of a major household component that would require the participant to live without basic plumbing, electrical, heating, cooling, or security. (These funds are not for use during a normal rehabilitation, they are for true emergency situations, such as a failed sewer line or water heater, blown electrical panel, etc.) Name of State RecipientCity of Tulare
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18 2. Grants of up to $10,000 are available for Fire Sprinkler installation and associated costs – for reconstruction projects, as required by CCR, Title 24, Part

2.5 of the 2010 California Residential Code.

3. Grants are available for the repair, replacement, or abandonment of domestic water wells and/or associated costs (such as water pump lowering) based on invoices from contracted well drillers and/or water pump installers. The Program Operator must approve a total cost estimate from a contracted well driller and/or water pump installer prior to financing approval to ensure cost reasonableness.

4. Grants of up to $7,500 are available for Asbestos containment and/or removal.

B. HOME and CDBG provide grants for all actual costs of lead-based paint evaluation and reduction activities.

C. HOME and CDBG provide grants for relocation assistance. See Relocation Assistance Plan, Attachment E.

1. Owner-Occupant – Limit of $35,000.

2. Residential Tenant – Assistance will be provided at the level necessary to comply with the Uniform Relocation Act (URA) and Section 104(d) of the Housing and Community Development Act of 1974. Note: HOME funds cannot be used for tenant-occupied units.

D. HOME-funded projects include grants, if necessary, to cover the costs of financing in excess of available equity. Available equity will be determined by subtracting the current total indebtedness from the after-rehabilitation value. Grants provided may be up to 25 percent of the applicable HUD Per-Unit Subsidy Limits established pursuant to 24 CFR 92.250 (a). This grant amount is in addition to any grant funds provided pursuant to Section 4.4.B. and 4.4.C.

E. Grants are not available in CalHome-funded programs.

4.5. APPRAISAL
A. The After-Rehab Value for rehabilitation projects is determined using the “Estimates of value” method. The Sponsor or Program Operator determines estimates of value based on the sale prices of at least three (3) comparable properties, sold within the last six months (within one year of the assistance date, which is the date the promissory note is signed), and located within one mile of the subject property. The participants’ file will include the estimate of value and document the basis for the value estimates.

The purpose of the “Estimates of value” is to determine that the After-Rehabilitation Value Limit of the housing unit will not exceed the permitted amount per HCD Program regulations (See Attachment C). If three comparable properties cannot be found, or if there is any question regarding the After-Rehab Value, the ARV will be determined by a licensed appraiser, as described in Section 4.5.B. below.

B. A licensed appraiser determines the After-Rehab Value for rehabilitation projects, when the “Estimates of value” method cannot be used. For rehabilitation projects the Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
19 appraiser determines the value of the unit with the rehabilitation building plans and specifications included. For HOME only, the cost of the appraisal will be paid by the Sponsor, not by the homeowner. The purpose of the appraisal is to determine that the after-rehabilitation value of the housing unit will not exceed the permitted amount per HCD Program regulations (See Attachment C), and that the combined loans will not exceed the maximum combined loan-to-value limit, as described in Section 4.2.A above.

C. The After-Rehab Value for reconstruction projects is determined by a licensed appraiser. The After-Rehab Value for reconstruction projects is determined by an appraisal completed off the building plans and specifications for the new home. For HOME only, the cost of the appraisal will be paid by the Sponsor, not by the homeowner. The purpose of the appraisal is to determine that the After-Rehabilitation Value Limit of the housing unit will not exceed the permitted amount per HCD Program regulations (See Attachment C).

4.6. INSURANCE

4.6.1. FIRE INSURANCE
The homeowner shall maintain fire insurance on the property for the duration of the Program loan(s). This insurance must be an amount adequate to cover all encumbrances on the property. The insurer must identify the Sponsor as Loss Payee for the amount of the Program loan(s). Evidence of this shall be provided to the Sponsor.

In the event the applicant fails to make the fire insurance premium payments in a timely fashion, the Sponsor at its option, may make such payments for a period not to exceed 60 days. The Sponsor may, in its discretion and upon the showing of special circumstances, make such premium payments for a longer period of time. Should the Sponsor make any payments, it may, in its sole discretion, add such payments to the principal amount that the applicant is obligated to repay the Sponsor under this Program. The premium may be paid by the Program loan for one year. Note: HOME and CDBG funds cannot be used to pay insurance cost beyond those identified as initial loan costs. Note: CalHome funds can not be used to pay insurance at any time.

4.6.2. FLOOD INSURANCE
For homes in a 100-year flood zone, the owner is required to maintain flood insurance in an amount adequate to secure the Program loan and all other encumbrances. This policy must designate the Sponsor as Loss Payee and a binder shall be provided to the Sponsor and maintained in the borrowers file. The premium may be paid by the Program loan for one year. Note: HOME funds cannot be used to pay insurance cost beyond those identified as initial loan costs. Note: CalHome funds can not be used to pay insurance at any time.

4.7. LOAN SECURITY
Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
20 A. Loan security for all owner-occupied rehabilitation stick-built homes will be secured by the real property and improvements, and will also include a Deed of Trust, Promissory Note and Loan Agreement in favor of the Sponsor.

B. A manufactured home in a mobile home park or on leased land that is not on a permanent foundation will be secured by an HCD 480.7 or an HCD 484 Statement of Lien, and will also include a Promissory Note and Loan Agreement.

C. Entering a subordinate lien is acceptable. However, the Sponsor will not subordinate a first lien position once established.

5.0. PROGRAM LOAN SERVICNG AND MAINTENANCE

5.1. PAYMENTS ARE VOLUNTARY
Borrowers may begin making voluntary payments at any time.

5.2. RECEIVING LOAN REPAYMENTS
A. Program loan payments will be made to:

Name of State RecipientCity of Tulare
Address411 E. Kern Avenue
City, State, ZipTulare, CA 93247
B. The Sponsor will be the receiver of loan payments or recapture funds and will maintain a financial record-keeping system to record payments and file statements on payment status. Payments shall be deposited and accounted for in the Sponsor’s appropriate Program Income Account, as required by all three HCD programs. The Program Sponsor will accept loan payments from borrowers prepaying deferred loans, from borrowers making payments in full upon sale or transfer of the property, and homeowners of tenant-occupied units. All loan payments are payable to the Sponsor. The Sponsor may at its discretion, enter into an agreement with a third party to collect and distribute payments and/or complete all loan servicing aspects of the Program.

5.3. LOAN SERVICING POLICIES AND PROCEDURES
See Attachment F for local loan servicing policies and procedures. While the attached policy outlines a system that can accommodate a crisis that restricts borrower repayment ability, it should in no way be misunderstood: The loan must be repaid. All legal means to ensure the repayment of a delinquent loan as outlined in the Loan Servicing Policies and Procedures will be pursued.

5.4. LOAN MONITORING PROCEDURES
Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
21 Homeowners will be required to submit each of the following to the Sponsor at the time of annual occupancy verification per Attachment F:
• Proof of occupancy in the form of a copy of a current utility bill; • Statement of unit's continued use as a residence;
• Declaration that other title holders do not reside on the premises; • Verification that Property Taxes are current; and
• Verification of current required insurance policies.

5.5. DEFAULT AND FORECLOSURE
If an owner defaults on a loan, and foreclosure procedures are instituted, they shall be carried out according to the Program Foreclosure Policy adopted by the Sponsor, and attached to these guidelines as Attachment G.

5.6. SUBORDINATIONS
The Sponsor may approve a request to subordinate a loan, in order for the owner to refinance the property, under the following conditions:

A. The lien position of the Sponsor loan will remain the same or be advanced.

B. The new primary loan is no greater than the balance of the loan being refinanced, except the costs of refinancing the loan may be added to the principal balance.

C. The purpose of the new primary loan is to reduce the interest rate being paid and/or reduce the owner's payment.

D. The refinanced loan must have an impound account for taxes and insurances.

E. The refinancing terms must be acceptable to the Sponsor.

F. CDBG allows refinancing with CDBG funds in conjunction with only rehabilitation of the unit.

6.0. CONSTRUCTION

6.1. STANDARDS
A. All repair work will meet Local Building Code standards. At a minimum, health and safety hazards must be eliminated. For CDBG and CalHome the priority will be the elimination of health and safety hazards. Sponsor may also require elimination of code deficiencies. When HOME funds are used for housing rehabilitation, the property must meet all applicable current codes, rehabilitation Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
22 standards, ordinances, and zoning ordinances at the time of project completion. However, if certain components of the house are sound and were built to code prescribed at the time of installation, no repair or alteration will be made to those components. Section 8 Housing Quality Standards may be required on rentals by Sponsor when CDBG funds are used.

B. Contracting Process

1. Contracting will be done on a competitive basis.

2. The homeowner will be the responsible agent, but the Sponsor and/or its Program Operator will prepare the work write-up, prepare and advertise the bid package, and assist the owner in negotiating the construction contract.

3. The Sponsor does not warrant any construction work, or provide insurance coverage.

C. Approved Contractors

1. Contractors are required to be licensed with the State of California, and be active and in good standing with the Contractors’ License Board.

2. Contractors will be checked against HUD’s list of federally debarred contractors. No award will be granted to a contractor on this list.

3. Contractors must have public liability and property damage insurance, and worker’s compensation, unemployment and disability insurance, to the extent required by State law.

4. Contractor must agree to comply with all federal and state regulations.

D. Occupants of units constructed prior to 1978 will receive proper notification of LeadBased Paint (LBP) hazards as identified in Section 3.3.A. Note: Units funded solely with CalHome funds are not required to comply with LBP regulations.

E. Units constructed prior to 1978 will also be inspected according to the following HUD regulations. Note: Units funded solely with CalHome funds are not required to comply with LBP regulations. For CDBG-funded programs, please refer to Chapter 20, Lead-Based Paint Requirements for guidance in the CDBG Grant Management Manual.

1. If the total amount of Federal assistance or the total amount of rehabilitation hard cost is up to and including $5,000, the following is required:
(a) Paint testing or presume LBP;
(b) Clearance of disturbed work areas; and
(c) Notifications listed in Section 3.3.A.

2. If the amount of Federal assistance or the total amount of rehabilitation hard cost is more than $5,000 up to and including $25,000, the following is required:
(a) Paint testing or presume LBP;
(b) Risk assessment; and
Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
23 (c) Clearance of unit.

If LBP hazards are identified, interim controls will be implemented. This level will also require a notice of “Abatement of Lead Hazards Notification” at least five days prior to starting work.

3. If the amount of Federal assistance or the total amount of rehabilitation hard cost is more that $25,000, the following is required:
(a) Items (a), (b), and (c) of 2. above;
(b) Abatement of all LBP hazards identified or produced; (c) Use of interim controls on exterior surfaces not disrupted by rehab; and all notices listed above in Sections 3.3.A. and 6.1.F.2.

4. All paint tests that result in a negative finding of lead-based paint are exempt from any and all additional requirements. If defective paint surfaces are found, they will be properly treated or abated. A State-certified Inspector/Assessor will perform all paint testing, risk assessments, and clearances. A trained supervisor may oversee interim controls; however, a certified supervisor and workers will perform all abatement.

6.2. ELIGIBLE CONSTRUCTION COSTS
“Rehabilitation” means, in addition to the definition in Section 50096 of the Health and Safety Code, repairs and improvements to a manufactured home necessary to correct any condition causing the home to be substandard pursuant to Section 1704 of Title 25, California Code of Regulations. Rehabilitation also includes room additions to alleviate overcrowding. Rehabilitation also means repairs and improvements where necessary to meet any locally-adopted standards used in local rehabilitation programs. Rehabilitation does not include replacement of personal property.

Rehabilitation includes reconstruction. Federal law and policy allows the use of HOME funds to demolish and reconstruct owner-occupied residential structures. Reconstruction is defined as the demolition and construction of a structure. The Sponsor and/or Program Operator must document that the reconstruction costs are less than the cost to rehabilitate the existing substandard housing. This will be done using the State’s CDBG Test for Reconstruction, for projects funded with CDBG funds; or, using the State’s HOME Test for Reconstruction, for projects funded with HOME funds.

Additionally, the Sponsor must determine that the project’s value after reconstruction (housing and land combined) is less that the HOME Homeownership Value Limits for the Sponsor’s jurisdiction (see Attachment C).

The residential structure to be reconstructed must be a structure with cooking, eating, sleeping, and sanitation facilities which has been legally occupied as a residence within the preceding 12 months. Fifth wheels or recreational vehicles, for example, are not considered dwellings and therefore are not eligible under this Program.

Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
24 Like for like requires that the structure being demolished must be replaced with a like structure (replace manufactured housing with manufactured housing, for example).

However, additions may be approved by the HCD Program when required by Codes/Ordinances or to alleviate overcrowding (see Attachment C).

Temporary relocation benefits must be planned for and budgeted into the total allowable subsidy for the project, but if required would be in the form of a grant.

Depending on the outcome of the Statutory Worksheet (Environmental test), a reconstructed project may require Authority from the State before funds are committed to the project.

Allowable rehabilitation\reconstruction costs include:

A. Cost of building permits and other related government fees.

B. Cost of architectural, engineering, and other consultant services which are directly related to the rehabilitation of the property.

C. For CDBG and CalHome, costs associated with the repair, replacement, or abandonment of domestic water wells and/or associated costs (such as water pump lowering).

D. Rehabilitation or Replacement of a manufactured home not on a permanent foundation. Rehabilitation of a manufactured home may include the replacement of the unit with a used manufactured home and the cost to repair it, as long as the unit has been occupied and not used as a demonstration model. Should the unit meet the criteria for reconstruction a new manufactured home can be used for replacement and all cost associated with the purchase and transportation can be added to the loan. For CalHome and CDBG, manufactured housing on permanent foundations may be replaced by stick-built structures.

CalHome requires the following for manufactured housing/mobile home to stick-built replacements:
1) Verification that the owner of the mobile home is also the landowner. The registration certificate and a preliminary title report must be submitted with the Borrower summary package. Any past due registration fees must be paid. 2) Provide written justification as to why the mobile home is being replaced and not repaired.

3. Ensure the new structure is “reasonable” for the size of the current household.

E. Owner-occupied rehabilitation activity delivery fees, pursuant to Section 7733(f), as reimbursement to the Sponsor for the actual costs of services rendered to the homeowner that are incidentally but directly related to the rehabilitation work (e.g. planning, engineering, construction management, including inspections and work write-ups).

F. Rehabilitation will address the following issues in the order listed. Eligible costs are Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
25 included for each item.

1. Health and Safety Issues
Eligible costs include, but are not limited to, energy-related improvements, lead-based paint hazard evaluation and reduction activities, improvements for handicapped accessibility, and repair or replacement of major housing systems.

Per the federal HOME Regulations at 24 CFR Part 92.251(b), Major Systems are:
•structural support
•roofing
•cladding and weatherproofing (e.g., windows, doors, siding, gutters) •plumbing
•electrical
•heating, ventilation, and air conditioning.

Upon project completion, each of the major systems must have a remaining useful life for a minimum of five (5) years, so these systems must be rehabilitated or replaced as part of the rehabilitation work in order to achieve this requirement.

A driveway may be considered part of rehabilitation if it is determined to be a health and safety issue.

2. Code and Regulation Compliance
Eligible costs include, but are not limited to, additional work required to rehabilitate and modernize a home to bring it into compliance with current building codes and regulations. Painting and weatherization are included.

3. Demolition
Eligible costs include, but are not limited to, the tear down and disposal of dilapidated structures when they are a part of the reconstruction of an affordable housing unit. If a garage or carport is detached, it may not be rehabilitated but may be demolished, if it is determined to be a health and safety issue.

4. Upgrades
Eligible costs include additional bedrooms and bathrooms if the need can be demonstrated per HUD’s or Sponsor’s overcrowding guidelines listed in Attachment C. The Program will not fund additions to a home for a den or family room, or for any luxury items.

The CalHome Program’s requirement is that a bedroom or bathroom can be added to omit overcrowding, and this is up to the Recipient to decide what is Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
26 overcrowding.

5. General Property Improvements
Eligible costs include, but are not limited to: addition or replacement of an oven, stove, dishwasher, or fixture; replacing floor coverings; painting; and repair or installation of fencing.

All improvements must be physically attached to the property and permanent in nature. Non-code general property improvements (including fencing, landscaping, driveway, etc.) will be limited to 15 percent of the rehabilitation loan amount. Any cash contribution by the property owner will be considered a general property improvement and be included in this percentage. Luxury items are not permitted. Items such as stoves and dishwashers that are not built-in may be replaced due only to incipient failure or documented medical condition of the homeowner, and must be of moderate quality.

For HOME and CalHome, replacement of a refrigerator is not allowed. For CalHome, repair or installation of fencing is not allowed.

6. Rehabilitation Standards
All repair work related to health and safety conditions will meet Local Building Code standards. The priority will be the elimination of all health and safety hazards and code compliance, which is required for HOME-funded projects.

6.3. ELIGIBLE PROJECT COSTS
Examples of eligible project costs for all administrative expenses related to the paperwork for processing and insuring a loan application are listed below. For HOME, these costs are considered activity delivery costs and may not be charged to the homeowner’s loan. • Appraisal
• Property Report/Title Insurance
• Building Plan
• Termite Report
• Land Survey
• Grading Plan
• Recording Fees
• Fire/Course of Construction Insurance
• Flood Insurance, as applicable (not allowed with CalHome or HOME funds)
Costs are based on charges currently incurred by the Sponsor, or its Program Operator, for these products and/or services. Except for HOME loans, any cost increases charged to the Sponsor/Program Operator for these products and/or services will be passed on to the Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
27 homeowner and included in the loan. All fees are subject to change and are driven by the market.

Name of State RecipientCity of Tulare
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28 6.4. REPAIR CALLBACKS
Contractors will comply with State law regarding all labor and material warranties. All labor and material shall meet FHA minimum specifications.

7.0. EXCEPTIONS AND SPECIAL CIRCUMSTANCES

7.1. AMENDMENTS
The Sponsor may make amendments to these Participant Guidelines. Any changes made shall be in accordance with federal and state regulations, shall be approved by the Sponsor’s Loan Committee and/or local governing body and submitted to HCD for approval.

7.2. EXCEPTIONS
Any case to which a standard policy or procedure, as stated in the guidelines, does not apply or an applicant treated differently from others of the same class would be an exception.

7.2.1 PROCEDURES FOR EXCEPTIONAL CIRCUMSTANCES
A. The Sponsor or its Program Operator may initiate consideration of an exception and prepare a report. This report shall contain a narrative, including the Sponsor’s/Program Operator’s recommended course of action and any written or verbal information supplied by the applicant.

B. The Sponsor shall make a determination of the exception based on the recommendation of the Program Operator. The request can be presented to the Sponsor’s loan committee and/or governing body for decision.

8.0. DISPUTE RESOLUTION AND APPEALS PROCEDURES

8.1. PROGRAM COMPLAINT AND APPEAL PROCEDURE
Complaints concerning the Sponsor’s Rehabilitation Program should be made to the Program Operator first. If unresolved in this manner, the complaint or appeal shall be made in writing and filed with the Sponsor. The Sponsor will then schedule a meeting with the Sponsor’s Loan Review Committee. Their written response will be made within thirty (30) working days. If the applicant is not satisfied with the committee's decision, a request for an appeal may be filed with the local governing body. Final appeal may be filed in writing with HCD within one year after denial or the filing of the Project Notice of Completion.

Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
29 8.2. GRIEVANCES BETWEEN PARTICIPANTS AND CONSTRUCTION

CONTRACTOR
Contracts signed by the contractor and the participant include the following clause, which provides a procedure for resolution of grievances:

Any controversy arising out of or relating to this Contract, or the breach thereof, shall 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 shall have the final authority to order work performed, to order the payment from one party to another, and to order who shall bear the costs of arbitration. Costs to initiate arbitration shall 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.

Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
30 ATTACHMENT A
24 CFR Part 5 ANNUAL INCOME INCLUSIONS AND EXCLUSIONS
24 CFR Part 5 Annual Income Inclusions
§5.609 Annual income.
(a) Annual income means all amounts, monetary or not, which:
(1) Go to, or on behalf of, the family head or spouse (even if temporarily absent) or to any other family member; or
(2) Are anticipated to be received from a source outside the family during the 12-month period following admission or annual reexamination effective date; and (3) Which are not specifically excluded in paragraph (c) of this section. (4) Annual income also means amounts derived (during the 12-month period) from assets to which any member of the family has access.
(b) Annual income includes, but is not limited to:
(1) The full amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services; (2) The net income from the operation of a business or profession. Expenditures for business expansion or amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation of assets used in a business or profession may be deducted, based on straight line depreciation, as provided in Internal Revenue Service regulations. Any withdrawal of cash or assets from the operation of a business or profession will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the family;
(3) Interest, dividends, and other net income of any kind from real or personal property.

Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
31 (i) Welfare assistance payments made under the Temporary Assistance for Needy Families (TANF) program are included in annual income only to the extent such payments:
(A) Qualify as assistance under the TANF program definition at 45 CFR 260.31; and
(B) Are not otherwise excluded under paragraph (c) of this section. (ii) If the welfare assistance payment includes an amount specifically designated for shelter and utilities that is subject to adjustment by the welfare assistance agency in accordance with the actual cost of shelter and utilities, the amount of welfare assistance income to be included as income shall consist of:
(A) The amount of the allowance or grant exclusive of the amount specifically designated for shelter or utilities; plus
(B) The maximum amount that the welfare assistance agency could in fact allow the family for shelter and utilities. If the family's welfare assistance is ratably reduced from the standard of need by applying a percentage, the amount calculated under this paragraph shall be the amount resulting from one application of the percentage.
(7) Periodic and determinable allowances, such as alimony and child support payments, and regular contributions or gifts received from organizations or from persons not residing in the dwelling;
(8) All regular pay, special pay and allowances of a member of the Armed Forces (except as provided in paragraph (c)(7) of this section).
(9) For section 8 programs only and as provided in 24 CFR 5.612, any financial assistance, in excess of amounts received for tuition and any other required fees and charges, that an individual receives under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), from private sources, or from an institution of higher education (as defined under the Higher Education Act of 1965 (20 U.S.C. 1002)), shall be considered income to that individual, except that financial assistance described in this paragraph is not considered annual income for persons over the age of 23 with dependent children. For purposes of this paragraph, “financial assistance” does not include loan proceeds for the purpose of determining income.
24 CFR Part 5 Annual Income Exclusions
(c) Annual income does not include the following:
(1) Income from employment of children (including foster children) under the age of 18 years; (2) Payments received for the care of foster children or foster adults (usually persons with disabilities, unrelated to the tenant family, who are unable to live alone); (3) Lump-sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and worker's compensation), capital gains and settlement for personal or property losses (except as provided in paragraph (b)(5) of this section); (4) Amounts received by the family that are specifically for, or in reimbursement of, the cost of medical expenses for any family member;
Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
32 (5) Income of a live-in aide, as defined in §5.403;
(6) Subject to paragraph (b)(9) of this section, the full amount of student financial assistance paid directly to the student or to the educational institution; (7) The special pay to a family member serving in the Armed Forces who is exposed to hostile fire;
(8) (i) Amounts received under training programs funded by HUD; (ii) Amounts received by a person with a disability that are disregarded for a limited time for purposes of Supplemental Security Income eligibility and benefits because they are set aside for use under a Plan to Attain Self-Sufficiency (PASS); (iii) Amounts received by a participant in other publicly assisted programs which are specifically for or in reimbursement of out-of-pocket expenses incurred (special equipment, clothing, transportation, child care, etc.) and which are made solely to allow participation in a specific program;
(iv) Amounts received under a resident service stipend. A resident service stipend is a modest amount (not to exceed $200 per month) received by a resident for performing a service for the PHA or owner, on a part-time basis, that enhances the quality of life in the development. Such services may include, but are not limited to, fire patrol, hall monitoring, lawn maintenance, resident initiatives coordination, and serving as a member of the PHA's governing board. No resident may receive more than one such stipend during the same period of time;
(v) Incremental earnings and benefits resulting to any family member from participation in qualifying State or local employment training programs (including training programs not affiliated with a local government) and training of a family member as resident management staff. Amounts excluded by this provision must be received under employment training programs with clearly defined goals and objectives, and are excluded only for the period during which the family member participates in the employment training program;
(9) Temporary, nonrecurring or sporadic income (including gifts); (10) Reparation payments paid by a foreign government pursuant to claims filed under the laws of that government by persons who were persecuted during the Nazi era; (11) Earnings in excess of $480 for each full-time student 18 years old or older (excluding the head of household and spouse);
(12) Adoption assistance payments in excess of $480 per adopted child; (13) [Reserved]
(14) Deferred periodic amounts from supplemental security income and Social Security benefits that are received in a lump sum amount or in prospective monthly amounts, or any deferred Department of Veterans Affairs disability benefits that are received in a lump sum amount or in prospective monthly amounts.
(15) Amounts received by the family in the form of refunds or rebates under State or local law for property taxes paid on the dwelling unit;
Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
33 (16) Amounts paid by a State agency to a family with a member who has a developmental disability and is living at home to offset the cost of services and equipment needed to keep the developmentally disabled family member at home; or
(17) Amounts specifically excluded by any other Federal statute from consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance under any program to which the exclusions set forth in 24 CFR 5.609(c) apply. A notice will be published in the FEDERAL REGISTER and distributed to PHAs and housing owners identifying the benefits that qualify for this exclusion. Updates will be published and distributed when necessary. [See https://www.federalregister.gov/documents/2014/05/20/2014- 11688/federally-mandated-exclusions-from-income-updated-listing for most recent notice] (d) Annualization of income. If it is not feasible to anticipate a level of income over a 12-month period (e.g., seasonal or cyclic income), or the PHA believes that past income is the best available indicator of expected future income, the PHA may annualize the income anticipated for a shorter period, subject to a redetermination at the end of the shorter period.

Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
34 ATTACHMENT A-1
Title 25 Section 6914 Gross Income Inclusions – For CalHome activities “Gross income” shall mean the anticipated income of a person or family for the twelve-month period following the date of determination of income.
“Income” shall consist of the following:
(a) Except as provided in subdivision (b), “Exclusions”, all payments from all sources received by the family head (even if temporarily absent) and each additional member of the family household who is not a minor shall be included in the annual income of a family. Income shall include, but not be limited to:
(1) The gross amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses;
(2) The net income from operation of a business or profession or from rental or real or personal property (for this purpose, expenditures for business expansion or amortization of capital indebtedness shall not be deducted to determine the net income from a business);
(3) Interest and dividends;
(4) The full amount of periodic payments received from social security, annuities, insurance policies, retirement funds, pensions, disability or death benefits and other similar types of periodic receipts;
(5) Payments in lieu of earnings, such as unemployment and disability compensation, worker’s compensation and severance pay;
(6) Public Assistance. If the public assistance payment includes any amount specifically designated for shelter and utilities which is subject to adjustment by the public assistance agency in accordance with the actual cost of shelter and utilities, the amount of public assistance income to be included as income shall consist of:
(A) The amount of the allowance or grant exclusive of the amount specifically designated for shelter and utilities, plus
(B) The maximum amount which the public assistance agency could in fact allow for the family for shelter and utilities,
(7) Periodic and determinable allowances such as alimony and child support payments, and regular contributions or gifts from persons not residing in the dwelling; All regular pay, special pay and allowances of a member of the Armed Forces (whether or not living in the dwelling) who is head of the family or spouse.

Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
35 ATTACHMENT B
PART 5 ANNUAL INCOME NET FAMILY ASSET INCLUSIONS AND EXCLUSIONS This table presents the Part 5 asset inclusions and exclusions as stated in the HUD Technical Guide for Determining Income and Allowances for HOME Program (Third Edition; January 2005).

Statements from 24 CFR Part 5 – Last Modified: January 2005 Inclusions

1. Cash held in savings accounts, checking accounts, safe deposit boxes, homes, etc. For savings accounts, use the current balance. For checking accounts, use the average 6-month balance. Assets held in foreign countries are considered assets.

2. Cash value of revocable trusts available to the applicant.

3. Equity in rental property or other capital investments. Equity is the estimated current market value of the asset less the unpaid balance on all loans secured by the asset and all reasonable costs (e.g., broker fees) that would be incurred in selling the asset. Under HOME, equity in the family's primary residence is not considered in the calculation of assets for owner-occupied rehabilitation projects.

4. Cash value of stocks, bonds, Treasury bills, certificates of deposit and money market accounts.

5. Individual retirement, 401(K), and Keogh accounts (even though withdrawal would result in a penalty).

6. Retirement and pension funds.

7. Cash value of life insurance policies available to the individual before death (e.g., surrender value of a whole life or universal life policy).

8. Personal property held as an investment such as gems, jewelry, coin collections, antique cars, etc.

9. Lump sum or one-time receipts, such as inheritances, capital gains, lottery winnings, victim's restitution, insurance settlements and other amounts not intended as periodic payments.

10. Mortgages or deeds of trust held by an applicant.

Exclusions

1. Necessary personal property, except as noted in number 8 of Inclusions, such as clothing, furniture, cars and vehicles specially equipped for persons with disabilities.

2. Interest in Indian trust lands.

3. Assets not effectively owned by the applicant. That is, when assets are held in an individual's name, but the assets and any income they earn accrue to the benefit of someone else who is not a member of the household and that other person is responsible for income taxes incurred on income generated by the asset.

4. Equity in cooperatives in which the family lives.

5. Assets not accessible to and that provide no income for the applicant.

6. Term life insurance policies (i.e., where there is no cash value).

7. Assets that are part of an active business. "Business" does not include rental of properties that are held as an investment and not a main occupation.

Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
36 ATTACHMENT B-1
Title 25 Section 6914 Gross Income Inclusions – For CalHome activities (b) The following items shall not be considered as income:
(1) Casual, sporadic or irregular gift items;
(2) Amounts which are specifically for or in reimbursement of the cost of medical expenses;
(3) Lump-sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and worker’s compensation), capital gains and settlement for personal or property losses; (4) Amounts of educational scholarships paid directly to the student or to the educational institution, and amounts paid by the government to a veteran for use in meeting the costs of tuition, fees, books and equipment. Any amounts of such scholarships, or payments to veterans not used for the above purposes of which are available for a subsistence are to be included in income;
(5) The special pay to a serviceman head of a family away from home and exposed to hostile fire;
(6) Relocation payments made pursuant to federal, state, or local relocation law; (7) Foster child care payments;
(8) The value of coupon allotments for the purchase of food pursuant to the Food Stamp Act of 1964 which is an excess of the amount actually charged the eligible household; (9) Payments received pursuant to participation of the following volunteer programs under the ACTION Agency:
(A)National Volunteer Antipoverty Programs which include VISTA, Service Learning Programs and Special Volunteer Programs.
(B) National Older American Volunteer Program for persons aged 60 and over which include Retired Senior Volunteer Programs, Foster Grandparent Program, older American Community Services Program, and National Volunteer Program to Assist Small Business Experience, Service Corps of Retired Executive (SCORE) and Active Corps of Executives (ACE).

Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
37 Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
38 ATTACHMENT C

HOME PROGRAM HOMEOWNERSHIP VALUE LIMITS FOR XXX TULARE COUNTY (HOME Value Limits as of 06/1/2021)

TULARE COUNTY
NAME
One-Family
XXXXX $XXX,XXX
[Note from HOME to remove: if you have exception limits approved by HOME, modify this table as needed and indicate from/through date of the exception]

CALHOME MAXIMUM SALES PRICE / VALUE LIMIT
1 as established by comparable sales or information provided by the California Real Estate Association. https://www.car.org/en/marketdata/data/countysalesactivity

HOME PER-UNIT SUBSIDY LIMITS FOR XXX TULARE COUNTY
(Limits are effective 9-9-2021)
O-BDR 1-BDR 2-BDR 3-BDR 4-BDR
$153,314 $175,752 $213,718 $276, 482 $303,490
CALHOME SUBSIDY LIMIT (as of 09/01/2021 NOFA)
Maximum assistance per unit is established by the most current CalHome NOFA. Current limits are $100,000 for housing rehabilitation, and $150,000 for reconstruction projects.

HOME PROGRAM HOUSEHOLD INCOME LIMITS FOR XXX TULARE COUNTY* (Limits are effective 06/1/2021)
Number of Persons in Household
1 2 3 4 5 6 7 8
80% of
AMI
$39,050 $44,600 $50,200 $55,750 $60,250 $64,700 $69,150 $73,600 HCD 20XX 2021 INCOME LIMITS FOR CALHOME

ADJUSTED FOR FAMILY SIZE FOR XXX TULARE COUNTY
Income
Level
Household Size
1 2 3 4 5 6 7 8
80% $39,150 $44,750 $50,350 $55,900 $60,400 $64,850 $69,350 $73,800 Sponsor will insert the limits for the county in which the Program is located, and will update the income limits annually as HCD provides new information. The link to the official, HCDmaintained Value, Subsidy, and Income limits is: http://www.hcd.ca.gov/grantsfunding/income-limits/state-and-federal-income-limits.shtml for HOME and CDBG limits, choose “State CDBG and HOME Income, Value and Rent Limits”; for CalHome income limits, choose “Official State Income Limits”).

Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
39 SPONSOR STANDARDS FOR BEDROOM AND BATHROOM ADDITIONS TO

ALLEVIATE OVERCROWDING
Maximum No.
of Persons in
the Household
Number of
Bedrooms
Number of
Bathrooms
1 SRO 1
1 0-BR 1
2 1-BR 1
4 2-BR 2
6 3-BR 2
8 4-BR 3
10 5-BR 3
12 6-BR 4
• Opposite sex children under 6 years of age may share a bedroom, up to 2 children per bedroom.
• Opposite-sex children 6 years of age and older may have their own bedroom. • Children shall be permitted a separate bedroom from their parents. • Same-sex children of any age may share a bedroom, up to 2 children per bedroom. • Adults not in a partner relationship may have their own bedroom. • 4 or more people – a second bathroom may be added.
• 8 or more people – a third bathroom may be added.
• Same rules apply to mobile home units.

The chart above is used as a guide to overcrowding.

Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
40 ATTACHMENT D

HOUSING REHABILITATION MARKETING PLAN

SUMMARY
The Sponsor will continue its efforts to market the Housing Rehabilitation Program in a manner that will reach all community members.

All marketing related to the Housing Rehabilitation Program is publicized in both English and Spanish. All marketing materials include information identifying the Sponsor’s commitment to fair housing laws and affirmative marketing policy, and are widely distributed. Equal opportunity is emphasized in written materials and oral presentations. A record is maintained by the Sponsor identifying what marketing materials are used, and when and where they are distributed.

Forms of marketing may include fliers, brochures, newspaper ads, articles and public service announcements. Fliers and brochures are distributed at local government buildings, other public buildings and through the mail, as well as to businesses that assist those not likely to apply without special outreach.

Advertisements and articles are published in newspapers that are widely circulated within the community.

Established working relationships with local lending agencies also aid in informing the public by facilitating the distribution of informational fliers to households seeking financial assistance for repairs that are unable to obtain conventional financing.

Informational meetings are offered to potential participants to explain Program requirements. Often, minimal formal outreach efforts are required as the need for assistance generally exceeds funds available. However, marketing measures are actively performed in order to maintain a healthy interest list.

Characteristics on all applicants and participants are collected and compared with the Sponsor’s demographics. Should the Sponsor find that there are underserved segments of the population, a plan to better serve them will be developed and implemented.

MARKETING FORMS
Fliers
Brochures
Newspaper Ads and Articles
Public Service Announcements
Public Informational Meetings

MARKETING VENUES
Local Government Buildings
Local Public Services Buildings
Private Businesses
Lending Agencies
Real Estate Offices
Newspaper
Radio
Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
41 Mail
Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
42 ATTACHMENT E

RESIDENTIAL ANTI-DISPLACEMENT AND TEMPORARY RELOCATION PLAN Version 2
The Housing and Community Development Act of 1974, as amended, and the National Affordable Housing Act of 1990, require all grantees of Community Development Block Grant (CDBG) funds or Home Investment Partnership (HOME) funds to follow a written Residential Anti-displacement and Relocation Assistance Plan (Plan) for any activities which could lead to displacement of occupants whose property is receiving funds from these or other federal funding source. Having been developed in response to both aforesaid federal legislations, this Plan is intended to inform the public of the compliance of the NAME OF STATE RECIPIENTCITY OF TULARE (Sponsor) with the requirements of federal regulations 24 CFR 570.606 under state recipient requirements and Section 104(d) of the Housing and Community Development Act of 1974 and 24 CFR 92 of the HOME federal regulations. The Plan will outline reasonable steps, which the Sponsor will take to minimize displacement and ensure compliance with all applicable federal and state relocation requirements. The Sponsor’s governing body has adopted this plan via a formal resolution.

This Plan will affect rehabilitation activities funded by the U.S. Department of Housing and Urban Development (HUD) under the following program titles: HOME, CDBG, Urban Development Action Grant (UDAG), Special Purpose Grants, Section 108 Loan Guarantee Program, and such other grants as HUD may designate as applicable, which take place with in the Sponsor’s jurisdiction limits.

The Sponsor will provide permanent relocation benefits to all eligible “displaced” households either owner-occupied or renter-occupied units which are permanently displaced by the housing rehabilitation program (See Section E below.). In addition, the Sponsor will replace all eligible occupied and vacant occupiable low-income group dwelling units demolished or converted to a use other than low income group housing as a direct result of rehabilitation activities. This applies to all units assisted with funds provided under the Housing and Community Development Act of 1974, as amended, and as described in the Federal Regulations 24 CFR 570.496(a), Relocation, Displacement and Acquisition: Final Rule dated July 18, 1990 (Section 104(d)) and 49 CFR Part 24, Uniform Relocation Assistance (URA) and Real Property Acquisition Regulations Final Rule and Notice (URA) dated March 2, 1989.

All Sponsor programs/projects will be implemented in ways consistent with the Sponsor’s commitment to Fair Housing. Participants will not be discriminated against on the basis of race, color, religion, age, ancestry, national origin, sex, familial status, or handicap. The Sponsor will provide equal relocation assistance available 1) to each targeted income group household displaced by the demolition or rehabilitation of housing or by the conversion of a targeted income group dwelling to another use as a direct result of assisted activities; and 2) to each separate class of targeted income group persons temporarily relocated as a direct result of activities funded by HUD programs.

A. Minimizing Permanent Displacement and Temporary Relocation Resulting from Housing Rehabilitation or Reconstruction Activities
Consistent with the goals and objectives of activities assisted under the Act, the Sponsor will take the following steps to minimize the displacement of persons from their homes during housing rehabilitation or reconstruction funded by HUD programs:

Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
43 1. Provide proper notices with counseling and referral services to all tenants so that they understand their relocation rights and receive the proper benefits. When necessary assist permanently displaced persons to find alternate housing in the neighborhood.

2. Stage rehabilitation of assisted households to allow owner occupants and/or tenants to remain during minor rehabilitation.

3. Encourage owner investors to temporarily relocate tenants to other available safe and sanitary vacant units on the project site area during the course of rehabilitation or pay expenses on behalf of replaced tenants.

4. Work with area landlords, real estate brokers, and/or hotel/motel managements to locate vacancies for households facing temporary relocation.

5. When necessary, use public funds, such as CDBG funds, to pay moving costs and provide relocation/displacement payments to households permanently displaced by assisted activities.

B. Lead Based Paint Mitigation Which Causes Temporary Relocation:

On September 15, 2000, the Final Rule for Lead Based Paint Hazard Control went into effect. Among other things, it requires that federally-funded rehabilitation must use safe work practices so that occupants and workers can be protected from lead hazards. At no time should the tenantoccupant(s) be present in work areas or designated adjacent areas while LHC activities are taking place in any dwelling unit interior, common area, or exterior. As such, occupants may not be allowed to remain in their units during the time that lead-based paint hazards are being created or treated. Once work that causes lead hazards has been completed, and the unit passes clearance, the occupants can return. The tenant-occupants may not reoccupy a work area or adjacent area until post-lead hazard reduction clearance standards have been achieved and verified with laboratory results. The final rule allows for certain exceptions: programs:

1. The work will not disturb lead-based paint, or create dust-lead or soil-lead hazard; or

2. The work is on exterior only and openings are sealed to prevent dust from entering the home, the work area is cleaned after the work is completed, and the residents have alternative lead free entry; or

3. The interior work will be completed in one period of less than 8-daytime hours and the work site is contained to prevent the release of dust into other areas of the home; or

4. The interior work will be completed within five (5) calendar days, the work site is contained to prevent the release of dust, the worksite and areas within 10 feet of the worksite are cleaned at the end of each day to remove any visible dust and debris, and the residents have safe access to kitchen and bath and bedrooms.

If temporary relocation benefits are not provided because the Sponsor believes that the project meets one of the above criteria, then proper documentation must be provided in the rehabilitation project file to show compliance. It is up to the Sponsor to ensure that the owner occupant or tenant in the project does not get impacted by lead paint mitigation efforts. In most cases where lead paint mitigation is taking place, occupants (tenants or owners) will be strongly encouraged to relocate even Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
44 for just a few days until a final lead clearance can be issued by a certified lead based paint assessor.

Occupants who are temporarily relocated because of lead based paint mitigation are entitled to the same relocation benefits as those who are relocated because of substantial rehabilitation or reconstruction activities.

C. Temporary Relocation of Owner Occupants:

Owner occupants are not allowed to stay in units which are hazardous environments during lead based paint mitigation. When their home is having lead based paint mitigation work done which will not make it safe to live in, then they are eligible for temporary relocation benefits up to $5,000, which will be provided as a grant. In the same way, a unit requiring substantial rehabilitation (with or without lead based paint mitigation) which will not allow the family to access a bath or kitchen facility, or if the unit is being demolished and reconstructed, then the family will be eligible for temporary relocation benefits up to $5,000, which will be provided as a grant. In no case shall the grant for temporary relocation exceed $5,000 for any one owner occupant.

Owner occupants will be encouraged to move in with family or friends during the course of rehabilitation, since they are voluntarily participating in the Program. The housing rehabilitation loan specialist and/or the rehabilitation construction specialist will complete a temporary relocation benefits form (See Appendix C) to document that the owner occupant understands that they must relocate during the course of construction and what benefits they wish to be reimbursed for as part of their relocation.

D. Temporary Relocation of Residential Tenants:

If continued occupancy during rehabilitation is judged to constitute a substantial danger to health and safety of the tenant or the public, or is otherwise undesirable because of the nature of the project, the tenant may be required to relocate temporarily. The contract administrator or rehabilitation specialist will make determination of the need for temporary relocation. The temporary relocation period will not exceed 180 days. All conditions of temporary relocation will be reasonable. Any tenant required to relocate temporarily will be helped to find another place to live which is safe, sanitary and of comparable value and they have the first right to move back into the original unit being rehabilitated at the same rent or lower. He or she may move in with family and friends and still receive full or partial temporary assistance based on eligible cost incurred. The housing rehabilitation loan specialist and/or the rehabilitation specialist will ensure that each tenant-occupied unit under the Program will receive a General Information Notice (GIN) (as soon as possible after a loan application is received) and the tenant will receive a Notice of Non-displacement (after loan approval), and each tenant-occupied unit will have a temporary relocation benefits form completed for them. (See Appendix C). These notices will document that each tenant understands what their relocation rights are, and if they must relocate during the course of construction, that they receive the proper counseling and temporary relocation benefits.

A tenant receiving temporary relocation shall receive the following:

1. Increased housing costs (e.g. rent increase, security deposits) and

2. Payment for moving and related expenses, as follows:
a. Transportation of the displaced persons and personal property within 50 miles, unless the grantee determines that farther relocation is justified; Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
45 b. Packing, crating, unpacking, and uncrating of personal property; c. Storage of personal property, not to exceed 12 months, unless the grantee determines that a longer period is necessary;
d. Disconnection, dismantling, removing, reassembling, and reinstalling relocated household appliances and other personal property;
e. Insurance for the replacement value of personal property in connection with the move and necessary storage;
f. The replacement value of property lost, stolen or damaged in the process of moving (not through the fault of the displaced person, his or her agent, or employee) where insurance covering such loss, theft or damage is not reasonably available; g. Reasonable and necessary costs of security deposits required to rent the replacement dwelling;
h. Any costs of credit checks required to rent the replacement dwelling; i. Other moving related expenses as the grantee determines to be reasonable and necessary, except the following ineligible expenses:
1) Interest on a loan to cover moving expenses; or
2) Personal injury; or
3) Any legal fee or other cost for preparing a claim for a relocation payment or for representing the claimant before the Grantee; or
4) Costs for storage of personal property on real property already owned or leased by the displaced person before the initiation of negotiations.

E. Rehabilitation Activities Requiring Permanent Displacement The Sponsor’s rehabilitation program will not typically trigger permanent displacement and permanent displacement activities fall outside of the scope of this plan. If a case of permanent displacement is encountered, then the staff responsible for the rehabilitation program will consult with Sponsor’s legal counsel to decide if they have the capacity to conduct the permanent displacement activity. If local staff does not have the capacity, then a professional relocation consultant will be hired to do the counseling and benefit determination and implementation. If local staff does wish to do the permanent displacement activity then they will consult and follow the HUD Relocation Handbook 1378.

F. Rehabilitation Which Triggers Replacement Housing
If the Sponsor’s rehabilitation program assists a property where one or more units are eliminated then under Section 104 (d) of the Housing and Community Act of 1974, as amended applies and the Sponsor is required to replace those lost units. An example of this would be a duplex unit which is converted into a single family unit. In all cases where rehabilitation activities will reduce the number of housing units in the jurisdiction, then the Sponsor must document that any lost units are replaced and any occupants of reduced units are given permanent relocation benefits. (This does not apply to reconstruction or replacement housing done under a rehabilitation program where the existing Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
46 unit(s) is demolished and replaced with a structure equal in size without in loss number of units or bedrooms.)
Replacement housing will be provided within three years after the commencement of the demolition or conversion. Before entering into a contract committing the Sponsor to provide funds for an activity that will directly result in such demolition or conversion, the Sponsor will make this activity public (through a noticed public hearing and/or publication in a newspaper of general circulation) and submit to the California Department of Housing and Community Development or the appropriate federal authority the following information in writing:

1. A description of the proposed assisted activity;

2. The location on a map and the approximate number of dwelling units by size (number of bedrooms) that will be demolished or converted to a use other than as targeted income group dwelling units as a direct result of the assisted activity;

3. A time schedule for the commencement and completion of the demolition or conversion;

4. The location on a map and the approximate number of dwelling units by size (number of bedrooms) that will be provided as replacement dwelling units;

5. The source of funding and a time schedule for the provision of the replacement dwelling units;

6. The basis for concluding that each replacement dwelling unit will remain a targeted income group dwelling unit for at least 10 years from the date of initial occupancy; and,

7. Information demonstrating that any proposed replacement of dwelling units with smaller dwelling units (e.g., a two-bedroom unit with two one-bedroom units) is consistent with the housing needs of targeted income group households in the jurisdiction.

The Program Operator for the Sponsor is responsible for tracking the replacement of housing and ensuring that it is provided within the required period. The Sponsor is responsible for ensuring requirements are met for notification and provision of relocation assistance, as described in Section 570.606, to any targeted income group displaced by the demolition of any dwelling unit or the conversion of a targeted income group dwelling unit to another use in connection with an assisted activity.

G. Record Keeping and Relocation Disclosures/Notifications The Sponsor will maintain records of occupants of federally-funded rehabilitated, reconstructed or demolished property from the start to completion of the project to demonstrate compliance with section 104(d), URA and applicable program regulations. Each rehabilitation project, which dictates temporary or permanent or replacement activities, will have a project description and documentation of assistance provided. (See sample forms in HUD Relocation Handbook 1378, Chapter 1, Appendix 11, form HUD-40054)
Appropriate advisory services will include reasonable advance written notice of (a) the date and Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
47 approximate duration of the temporary relocation; (b) the address of the suitable, decent, safe, and sanitary dwelling to be made available for the temporary period; (c) the terms and conditions under which the tenant may lease and occupy a suitable, decent, safe, and sanitary dwelling.

Notices shall be written in plain, understandable primary language of the persons involved. Persons who are unable to read and understand the notice (e.g. illiterate, foreign language, or impaired vision or other disability) will be provided with appropriate translation/communication. Each notice will indicate the name and telephone number of a person who may be contacted for answers to questions or other needed help.

The notices and process below is for only temporary relocation. If permanent relocation is involved then other sets of notice and noticing process and relocation benefits must be applied (See HUD relocation handbook 1378 for those forms and procedures) The Temporary Relocation Advisory Notices to be provided are as follows:

1. General Information Notice: As soon as feasible when an owner investor is applying for Federal financing for rehabilitation, reconstruction, or demolition, the tenant of a housing unit will be mailed or hand delivered a General Information Notice that the project has been proposed and that the tenant will be able to occupy his or her present house upon completion of rehabilitation.

The tenant will be informed that the rent after rehabilitation will not exceed current rent or 30 percent of his or her average monthly gross household income. The tenant will be informed that if he or she is required to move temporarily so that the rehabilitation can be completed, suitable housing will be made available and he or she will be reimbursed for all reasonable extra expenses. The tenant will be cautioned that he or she will not be provided relocation assistance if he or she decides to move for personal reasons. See Appendix A for sample notice to be delivered personally or by certified mail.

2. Notice of Non Displacement: As soon as feasible when the rehabilitation application has been approved, the tenant will be informed that they will not be permanently displaced and that they are eligible for temporary relocation benefits because of lead based paint mitigation or substantial rehabilitation, or reconstruction of their unit. The tenant will also again be cautioned not to move for personal reasons during rehabilitation, or risk losing relocation assistance. See Appendix B for sample notice to be delivered personally or by certified mail.

3. Disclosure to Occupants of Temporary Relocation Benefits: This form is completed to document that the Sponsor is following it’s adopted temporary relocation plan for owner occupants and tenants. See Appendix C for a copy of the disclosure form.

4. Other Relocation/Displacement Notices: The above three notices are required for temporary relocation. If the Sponsor is attempting to provide permanent displacement benefits then there are a number of other forms which are required. Staff will consult HUD’s Relocation Handbook 1378 and ensure that all the proper notices are provided for persons who are permanently displaced as a result of housing rehabilitation activities funded by CDBG or other federal programs.

Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
48 APPENDIX A
Dear ,
On (date) , (property owner) submitted an application to the for financial assistance to rehabilitate the building which you occupy at (address) .

This notice is to inform you that, if the assistance is provided and the building is rehabilitated, you will not be displaced. Therefore, we urge you not to move anywhere at this time. (If you do elect to move for reasons of your choice, you will not be provided relocation assistance.) If the application is approved and Federal assistance is provided for the rehabilitation, you will be able to lease and occupy your present apartment (or another suitable, decent, safe and sanitary apartment in the same building) upon completion of the rehabilitation. Of course, you must comply with standard lease terms and conditions.

After the rehabilitation, your initial rent, including the estimated average monthly utility costs, will not exceed the greater of (a) your current rent/average utility costs, or (b) 30 percent of your gross household income. If you must move temporarily so that the rehabilitation can be completed, suitable housing will be made available to you for the temporary period, and you will be reimbursed for all reasonable extra expenses, including all moving costs and any increase in housing costs.

Again, we urge you not to move. If the project is approved, you can be sure that we will make every effort to accommodate your needs. Because Federal assistance would be involved, you would be protected by the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended.

This letter is important and should be retained. You will be contacted soon. In the meantime, if you have any questions about our plans, please contact (name) , (title) , at (telephone number), (address) .

Sincerely,
(name)
(title)
Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
49 APPENDIX B
(date)
Dear :

On (date) , we notified you that the owner of your building had applied for assistance to make extensive repairs to the building. On (date) , the owner's request was approved, and the repairs will begin soon.

This is a notice of non-displacement. You will not be required to move permanently as a result of the rehabilitation. This notice guarantees you the following:

1. You will be able to lease and occupy your present apartment [or another suitable, decent, safe and sanitary apartment in the same building/complex] upon completion of the rehabilitation. Your monthly rent will remain until after construction is completed. If increased after construction is done, your new rent and estimated average utility costs will not exceed local fair market rents for your community. Of course, you must comply with all the other reasonable terms and conditions of your lease.

2. If you must move temporarily so that the repairs can be completed, you will be reimbursed for all of your extra expenses, including the cost of moving to and from the temporarily occupied unit and any additional housing costs. The temporary unit will be decent, safe and sanitary, and all other conditions of the temporary move will be reasonable.

Since you will have the opportunity to occupy a newly rehabilitated apartment, I urge you not to move. (If you do elect to move for your own reasons, you will not receive any relocation assistance.) We will make every effort to accommodate your needs. Because Federal assistance is involved, you are protected by the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended.

If you have any questions, please contact (name) , (title), at (phone #) , (address) .

Remember; do not move before we have a chance to discuss your eligibility for assistance. This letter is important to you and should be retained.

Sincerely,
(name and title)
Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
50 APPENDIX C

DISCLOSURE TO OCCUPANT OF TEMPORARY RELOCATION BENEFITS Top to be completed at time of loan application submittal or Home Visit Property Address:
__ Rental Unit __Owner-Occupied Unit
The rehabilitation loan specialist working on behalf of the City/County of has explained the temporary relocation services and benefits available under the current rehabilitation program relocation plan.

I/we have been advised that the City/County of rehabilitation construction specialist will inform me if I need to be temporarily relocated and will to assist me with scheduling any necessary moves and answer any questions about assistance as needed.

Acknowledged:

Occupant Signature Date Occupant Signature Date
Complete this at time of acceptance of Work Write Up with initials by occupant The rehabilitation construction specialist for the City/County of has explained the Rehabilitation Scope of Work for our house and I/we agree that it will:
____ Not require I/we to be relocated. (If initialed then STOP here and sign bottom.) ____ Yes, I/we need to be temporarily relocated. (Complete rest of form if initialed.) Start date and duration of relocation:
____ Starting on or about we will move for all or part of the rehabilitation project.

Approximate length of temporary relocation: Number of days.

For temporary relocation, I/We elect to (check all that apply):
____ Relocate with friends and family.
____ Relocate into a suitable temporary housing unit identified by rehab specialist. ____ Relocate furnishings only into a temporary storage unit. ____ I/We have been told what our relocation benefits are and elect Not to be reimbursed for any eligible relocation expenses. ____ I/We have been told what our relocation benefits are and want to be reimbursed for:

By signing, occupant(s) acknowledge receipt of copy of this form:

Occupant Signature Date Occupant Signature Date
Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
51 ATTACHMENT F

LOAN SERVICING POLICIES AND PROCEDURES

FOR THE NAME OF STATE RECIPIENTCITY OF TULARE
The Name of State RecipientCity of Tulare, hereafter called “Sponsor,” has adopted these policies and procedures in order to preserve its financial interest in properties, whose “Borrowers” have been assisted with public funds. The Sponsor will to the greatest extent possible follow these policies and procedures, but each loan will be evaluated and handled on a case-by-case basis. The Sponsor has formulated this document to comply with state and federal regulations regarding the use of these public funds and any property restrictions, which are associated with them.

The policies and procedures are broken down into the follow areas: 1) making required monthly payments or voluntary payments on a loan’s principal and interest; 2) required payment of property taxes and insurance; 3) required Request for Notice of Default on all second mortgages; 4) loans with annual occupancy restrictions and certifications 5) required noticing and limitations on any changes in title or use of property; 6) required noticing and process for requesting a subordination during a refinance; 7) processing of foreclosure in case of default on the loan.

1. Loan Repayments:

The Sponsor will collect monthly payments from those borrowers who are obligated to do so under Notes which are amortized promissory notes. Late fees will be charged for payments received after the assigned monthly date.

For Notes which are deferred payment loans, the Sponsor must accept voluntary payments on the loan. Loan payments will be credited to principal. The Borrower may repay the loan balance at any time with no penalty.

2. Payment of Property Taxes and Insurance:

As part of keeping the loan from going into default, Borrower must maintain property insurance coverage naming the Sponsor as loss payee. Except for HOME-funded loans, if Borrower fails to maintain the necessary insurance, the Sponsor may take out force placed insurance to cover the property while the Borrower puts a new insurance policy in place. All costs for installing the necessary insurance will be added to the loan balance at time of installation of Borrower’s new insurance.

When a property is located in a 100-year floodplain, the Borrower will be required to carry the necessary flood insurance. A certificate of insurance for flood and for standard property insurance naming the Sponsor as a lender loss payee will be required at close of escrow. The Sponsor will verify the insurance on an annual basis.

Property taxes must be kept current during the term of the loan. If the Borrower fails to Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
52 maintain payment of property taxes then the Sponsor may pay the taxes current and add the balance of the tax payment plus any penalties to the balance of the loan (not permissible when funded with HOME). Wherever possible, the Sponsor encourages Borrower to have impound accounts set up with their first mortgagee wherein they pay their taxes and insurance as part of their monthly mortgage payment.

3. Required Request for Notice of Default:

When the Borrower’s loan is in second position behind an existing first mortgage, it is the Sponsor's policy to prepare and record a "Request for Notice of Default" for each senior lien in front of Sponsor’s loan. This document requires any senior lienholder listed in the notice to notify the Sponsor of initiation of a foreclosure action. The Sponsor will then have time to contact the Borrower and assist them in bringing the first loan current. The Sponsor can also monitor the foreclosure process and go through the necessary analysis to determine if the loan can be made whole or preserved. When the Sponsor is in a third position and receives notification of foreclosure from only one senior lienholder, it is in their best interest to contact any other senior lienholders regarding the status of their loans.

4. Annual Occupancy Restrictions and Certifications:

On owner-occupant loans the Sponsor may require that Borrowers submit utility bills and/or other documentation annually to prove occupancy during the term of the loan. For CDBG, some loans may have income and housing cost evaluations, which require a household to document that they are not able to make repayments, typically every five years. These loan terms are incorporated in the original note and deed of trust. On HOME-funded loans, annual occupancy verification will occur [Option #1: within 45 days of the anniversary date of the loan; Option #2: between [MONTH]January 1st and 15th of each year for the term of the loan].

5. Required Noticing and Restrictions on Any Changes of Title or Occupancy:

In all cases where there is a change in title or occupancy or use, the Borrower must notify the Sponsor in writing of any change. Sponsor and Borrower will work together to ensure the property is kept in compliance with the original Program terms and conditions such that it remains available as an affordable home for low income families. These types of changes are typical when Borrowers do estate planning (adding a relative to title) or if a Borrower dies and property is transferred to heirs or when the property is sold or transferred as part of a business transaction. In some cases the Borrower may move and turn the property into a rental unit without notifying the Sponsor. Changes in title or occupancy must be in keeping with the objective of benefit to low-income households (below 80 percent of AMI).

Change from owner-occupant to owner-occupant occurs at a sale. When a new owneroccupant is not low-income, the loan is not assumable and the loan balance is immediately due and payable. If the new owner-occupant qualifies as low-income, the purchaser may either pay the loan in full or assume all loan repayment obligations of the original owner-occupant, Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
53 subject to the approval of the Sponsor’s Loan Committee (depends on the HCD program).

If a transfer of the property occurs through inheritance, the heir (as owner-occupant) may be provided the opportunity to assume the loan at an interest rate based on household size and household income, provided the heir is income eligible. If the heir intends to occupy the property and is not low-income, the balance of the loan is due and payable. If the heir intends to act as an owner-investor, the balance of the loan may be converted to an owner/investor interest rate and loan term and a rent limitation agreement is signed and recorded on title. All such changes are subject to the review and approval of the Sponsor’s Loan Committee.

Change from owner-occupant to owner-investor occurs when an owner-occupant decides to move out and rent the assisted property, or if the property is sold to an investor. If the owner converts any assisted unit from owner-occupied to rental, the loan is due in full.

Conversion to use other than residential use is not allowable where the full use of the property is changed from residential to commercial or other. In some cases, Borrowers may request that the Sponsor allow for a partial conversion where some of the residence is used for a business but the household still resides in the property. Partial conversions can be allowed if it is reviewed and approved by any and all agencies required by local statute. If the use of the property is converted to a fully non-residential use, the loan balance is due and payable.

6. Requests for Subordinations:

When a Borrower wishes to refinance the property, they must request a subordination request to the Sponsor. The Sponsor will subordinate their loan only when there is no “cash out” as part of the refinance. Cash out means there are no additional charges on the transaction above loan and escrow closing fees. There can be no third-party debt payoffs or additional encumbrance on the property above traditional refinance transaction costs. Furthermore, the refinance should lower the housing cost of the household with a lower interest rate and the total indebtedness on the property should not exceed the current market value.

Upon receiving the proper documentation from the refinance lender, the request will be considered by the loan committee for review and approval. Upon approval, the escrow company will provide the proper subordination document for execution and recordation by the Sponsor.

7. Process for Loan Foreclosure:

Upon any condition of loan default: 1) non-payment; 2) lack of insurance or property tax payment; 3) change in title or use without approval; or 4) default on senior loans, the Sponsor will send out a letter to the Borrower notifying them of the default situation. If the default situation continues, the Sponsor may start a formal process of foreclosure.

When a senior lienholder starts a foreclosure process and the Sponsor is notified via a Request for Notice of Default, the Sponsor, who is the junior lienholder, may cancel the foreclosure proceedings by "reinstating" the senior lienholder. The reinstatement amount or payoff amount Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
54 must be obtained by contacting the senior lienholder. This amount will include all delinquent payments, late charges and fees to date. Sponsor must confer with Borrower to determine if, upon paying the senior lienholder current, the Borrower can provide future payments. If this is the case, then the Sponsor may cure the foreclosure and add the costs to the balance of the loan with a Notice of Additional Advance on the existing note. HOME funds may not be used for this purpose, however.

If the Sponsor determines, based on information on the reinstatement amount and status of Borrower, that bringing the loan current will not preserve the loan, then staff must determine if it is cost effective to protect their position by paying off the senior lienholder in total and restructure the debt such that the unit is made affordable to the Borrower. If the Sponsor does not have sufficient funds to pay the senior lienholder in full, then they may choose to cure the senior lienholder and foreclose on the property themselves. As long as there is sufficient value in the property, the Sponsor can afford to pay for the foreclosure process and pay off the senior lienholder and retain some or all of their investment.

If the Sponsor decides to reinstate, the senior lienholder will accept the amount to reinstate the loan up until five (5) days prior to the set "foreclosure sale date." This "foreclosure sale date" usually occurs about four (4) to six (6) months from the date of recording of the "Notice of Default." If the Sponsor fails to reinstate the senior lienholder before five (5) days prior to the foreclosure sale date, the senior lienholder would then require a full pay off of the balance, plus costs, to cancel foreclosure. If the Sponsor determines the reinstatement and maintenance of the property not to be cost effective and allows the senior lienholder to complete foreclosure, the Sponsor's lien may be eliminated due to insufficient sales proceeds.

Sponsor as Senior Lienholder
When the Sponsor is first position as a senior lienholder, active collection efforts will begin on any loan that is 31 or more days in arrears. Attempts will be made to assist the homeowner in bringing and keeping the loan current. These attempts will be conveyed in an increasingly urgent manner until loan payments have reached 90 days in arrears, at which time the Sponsor may consider foreclosure. Sponsor’s staff will consider the following factors before initiating foreclosure:
1) Can the loan be cured and can the rates and terms be adjusted to allow for affordable payments such that foreclosure is not necessary?
2) Can the Borrower refinance with a private lender and pay off the Sponsor? 3) Can the Borrower sell the property and pay off the Sponsor? 4) Does the balance warrant foreclosure? (If the balance is under $5,000, the expense to foreclose may not be worth pursuing.)
5) Will the sales price of home "as is" cover the principal balance owing, necessary advances, (maintain fire insurance, maintain or bring current delinquent property taxes, Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
55 monthly yard maintenance, periodic inspections of property to prevent vandalism, etc.) foreclosure, and marketing costs?
If the balance is substantial and all of the above factors have been considered, the Sponsor may opt to initiate foreclosure. The Borrower must receive, by certified mail, a thirty-day notification of foreclosure initiation. This notification must include the exact amount of funds to be remitted to the Sponsor to prevent foreclosure (such as, funds to bring a delinquent BMIR current or pay off a DPL).

At the end of thirty days, the Sponsor should contact a reputable foreclosure service or local title company to prepare and record foreclosure documents and make all necessary notifications to the owner and junior lienholders. The service will advise the Sponsor of all required documentation to initiate foreclosure (Note and Deed of Trust usually) and funds required from the owner to cancel foreclosure proceedings. The service will keep the Sponsor informed of the progress of the foreclosure proceedings.

When the process is completed, and the property has "reverted to the beneficiary" at the foreclosure sale, the Sponsor could sell the home themselves under a homebuyer program or use it for an affordable rental property managed by a local housing authority or use it for transitional housing facility or other eligible use. The Sponsor could contract with a local real estate broker to list and sell the home and use those funds for Program income-eligible uses.

Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
56 ATTACHMENT G
NAME OF STATE RECIPIENTCITY OF TULARE’S

FORECLOSURE POLICY
Sponsor As Junior Lienholder
It is the Name of State RecipientCity of Tulare’s (Sponsor’s) policy to prepare and record a "Request for Notice" on all junior liens (any lien after the first position) placed on properties financed by a loan.

This document requires any senior lienholder to notify the Sponsor of initiation (recordation of a "Notice of Default") of a foreclosure only. This is to alert the junior lienholder that they are to monitor the foreclosure with the senior lienholder. When the Sponsor is in a third position and receives notification of foreclosure from only one senior lienholder, it would be in their best interest to contact both senior lienholders regarding the status of their loans.

The junior lienholder may cancel the foreclosure proceedings by "reinstating" the senior lienholder. The reinstatement amount must be obtained by contacting the senior lienholder.

This amount will include all delinquent payments, late charges, advances (fire insurance premiums, property taxes, property protection costs, etc.), and foreclosure costs (fees for legal counsel, recordings, certified mail, etc.)
Once the Sponsor has the information on the reinstatement amount, staff must then determine if it is cost effective to protect their position by reinstating the senior lienholder, keeping them current by submitting a monthly payment thereafter, foreclosing on the property possibly resulting in owning the property at the end of foreclosure, protecting the property against vandalism, and paying marketing costs (readying the home for marketing, paying for yard maintenance, paying a real estate broker a sales commission).

Sponsor As Senior Lienholder
When the Sponsor is in a first position, or the senior lienholder, active collection efforts will begin on any loan that is 31 or more days in arrears. Attempts will be made to assist the homeowner in bringing and keeping the loan current. These attempts will be conveyed in an Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
57 increasingly urgent manner until loan payments have reached 90 days in arrears, at which time the Sponsor may consider foreclosure. Sponsor staff will consider the following factors before initiating foreclosure:
- Can the loan be cured (brought current or paid off) by the owner without foreclosure?
- Can the owner refinance with a commercial lender and pay off the Sponsor? - Can the owner sell the property and pay off the Sponsor? - Does the balance warrant foreclosure? (If the balance is under $5,000, the expense to foreclose may not be worth pursuing.)
- Will the sales price of home "as is" cover the principal balance owing, necessary advances, (maintain fire insurance, maintain or bring current delinquent property taxes, monthly yard maintenance, periodic inspections of property to prevent vandalism, etc.) foreclosure, and marketing costs? If the balance is substantial and all of the above factors have been considered, the Sponsor may opt to initiate foreclosure. The owner must receive, by certified mail, a thirty-day notification of foreclosure initiation. This notification must include the exact amount of funds to be remitted to the Sponsor to prevent foreclosure (such as, funds to bring a delinquent BMIR current or pay off a DPL).

Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
58 ATTACHMENT H

CERTIFICATION OF OCCUPANCY

NAME OF STATE RECIPIENTCITY OF TULARE
I/we declare as follows:
(Please Print Occupant’s Name(s))
That I/we am/are currently occupying as my/our principal place of residence the real property commonly known as:
(Address)
(City, State, Zip code)
Daytime Phone Number:

Executed on______________________, 20____, at ___________________, CA (Date) (City)
I/we declare under penalty of perjury that the foregoing is true and correct.

Signature(s) of all occupants:

Occupant: _______________________________________________________________ Occupant: _______________________________________________________________ Occupant: _______________________________________________________________ Occupant: _______________________________________________________________ Occupant: ___________________________________________________________ Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
59 Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
60 ATTACHMENT I

LEAD-BASED PAINT

VISUAL ASSESSMENT, NOTICE OF PRESUMPTION, AND HAZARD REDUCTION FORM Section 1: Background Information
Property Address: No LBP found or LBP exempt 
Select one: Visual Assessment  Presumption  Hazard Reduction  Section 2: Visual Assessment. Fill out Sections 1, 2, and 6. If paint stabilization is performed, also fill out Sections 4 and 5 after the work is completed.

Visual Assessment Date: Report Date:

Check if no deteriorated paint found 
Attachment A: Summary where deteriorated paint was found. For multi-family housing, list at least the housing unit numbers and common areas and building components (including type of room or space, and the material underneath the paint).

Section 3: Notice of Presumption. Fill out Sections 1, 3, 5, and 6. Provide to occupant w/in 15 days of presumption.

Date of Presumption Notice:

Lead-based paint is presumed to be present  and/or Lead-based paint hazards are presumed to be present 
Attachment B: Summary of Presumption: For multi-family housing, list at least the housing unit numbers and common areas, bare soil locations, dust-lead location, and or building components (including type of room or space, and the materials underneath the paint) of lead-based paint and/or hazards presumed to be present.

Section 4: Notice of Lead-Based Paint Hazard Reduction Activity. Fill out Sections 1, 4, 5, and 6.

Provide to occupant w/in 15 days of after work completed.

Date of Hazard Reduction Notice:

Initial Hazard Reduction Notice? Yes  No  Start & Completion Dates:

If “No”, dates of previous Hazard Reduction Activity Notices:

Attachment C: Activity locations and types. For multi-family housing, list at least the housing unit numbers and common areas (for multifamily housing), bare soil locations, dust–lead locations, and/or building components (including type of room or space, and the material underneath the paint), and the types of lead-based paint hazard reduction activities performed at the location listed.

Attachment D: Location of building components with lead-based paint remaining in the rooms, spaces or areas where activities were conducted.

Attachment E: Attach clearance report(s), using DHS form 8552 (and 8551 for abatement activities) Section 5: Resident Receipt of Notice for Presumption or Lead-Based Paint Hazard Reduction Activity and Acknowledgement of Receipt of pamphlet Protection Your Family from Lead in Your Home.

Printed Name: Signature: Date:

Section 6: Contact Information Organization:

Contact Name: Contact Signature:

Date: Address: Phone:

Name of State RecipientCity of Tulare
Housing Rehabilitation Program Guidelines
61 Name of State
RecipientCity of
Tulare

Homebuyer
Acquisition Only/
Acquisition with Rehabilitation
Program Guidelines
For:

HOME Investment Partnerships Program
Community Development Block Grant
(CDBG) Program
CalHome Program
Serving the name of city, or the unincorporated
areas of the CountyCity of XXXTULARE
CalHome Approved (date)
CDBG Approved (date)
HOME Approved (date)

HOMEBUYER PROGRAM GUIDELINES
Table of Contents

1.0. GENERAL

1.1. PROGRAM OUTREACH AND MARKETING

1.2. APPLICATION PROCESS AND SELECTION

1.3. THE HOME PURCHASE PROCESS

1.4. HOMEBUYER COSTS

1.5. HOMEBUYER EDUCATION

1.6. CONFLICT OF INTEREST REQUIREMENTS

1.7. NON-DISCRIMINATION REQUIREMENTS

2.0. APPLICANT QUALIFICATIONS

2.1. CURRENT INCOME LIMITS

2.2. INCOME QUALIFICATION CRITERIA

2.3. DEFINITION OF AN ELIGIBLE HOMEBUYER

3.0. HOUSING UNIT ELIGIBILITY

3.1. LOCATION AND CHARACTERISTICS

3.2. CONDITIONS

3.3 ACQUISITION WITH REHABILITATION PROCESS

3.4. ANTI-DISPLACEMENT POLICY AND RELOCATION ASSISTANCE

3.5. PROPER NOTIFICATION AND DISCLOSURES

4.0. PURCHASE PRICE LIMITS

5.0. THE PRIMARY LOAN

5.1 QUALIFYING RATIOS

5.2 INTEREST RATE

5.3 LOAN TERM

5.4 IMPOUND ACCOUNT

6.0. THE PROGRAM LOAN

6.1 MAXIMUM AMOUNT OF PROGRAM ASSISTANCE

6.2 NON-RECURRING CLOSING COSTS

6.3 AFFORDABILITY PARAMETERS FOR HOMEBUYERS

6.4 RATES AND TERMS FOR PROGRAM LOANS

6.5 LOAN-TO-VALUE RATIO

7.0. PROGRAM LOAN REPAYMENT

7.1. PAYMENTS ARE VOLUNTARY

7.2. RECEIVING LOAN REPAYMENTS

7.3. DUE UPON SALE OR TRANSFER

7.4. LOAN SERVICING POLICIES AND PROCEDURES

7.5. LOAN MONITORING PROCEDURES

8.0. PROGRAM LOAN PROCESSING AND APPROVAL

8.1. COMPLETION OF UNDERWRITING AND APPROVAL OF PROGRAM LOAN

8.2. PRIMARY AND PROGRAM LOAN DOCUMENT SIGNING

8.3. ESCROW PROCEDURES

9.0. SUBORDINATE FINANCING

10.0. EXCEPTIONS AND SPECIAL CIRCUMSTANCES

10.1. DEFINITION OF EXCEPTION

10.2. PROCEDURES FOR EXCEPTIONAL CIRCUMSTANCES

11.0. DISPUTE RESOLUTION AND APPEALS PROCEDURE

TABLE OF CONTENTS (CONTINUED)

ATTACHMENTS
ATTACHMENT A: 24 CFR PART 5 ANNUAL INCOME INCLUSIONS AND EXCLUSIONS ATTACHMENT B: ANNUAL INCOME NET FAMILY ASSET INCLUSIONS AND EXCLUSIONS ATTACHMENT C: MAXIMUM PURCHASE PRICE/AFTER-REHAB VALUE LIMITS; HOME PER UNIT SUBSIDY LIMITS; CURRENT INCOME LIMITS
ATTACHMENT D: LOAN SERVICING POLICIES AND PROCEDURES
ATTACHMENT E: SELLER'S LEAD-BASED PAINT DISCLOSURE
ATTACHMENT F: DISCLOSURE TO SELLER WITH VOLUNTARY, ARM'S-LENGTH

PURCHASE OFFER
ATTACHMENT G: INSTRUCTIONS TO HOMEBUYER
ATTACHMENT H: LEAD-BASED PAINT NOTICE OF PRESUMPTION AND HAZARD REDUCTION FORM
ATTACHMENT I: HOMEBUYER PROGRAM LEAD COMPLIANCE DOCUMENT CHECKLIST ATTACHMENT J: ACQUISITION WITH REHABILITATION CONSTRUCTION CONTRACT ATTACHMENT K: CONSTRUCTION PAYMENT REQUEST

NAME OF STATE RECIPIENTCITY OF TULARE

HOMEBUYER PROGRAM GUIDELINES

1.0. GENERAL
The above–named entity, hereinafter referred to as the “Sponsor,” has entered into a contractual relationship with the California Department of Housing and Community Development (“HCD”) to administer one or more HCD-funded homebuyer programs. The homebuyer program described herein (the “Program”) is designed to provide assistance to eligible homebuyers in purchasing homes, also referred to herein as “housing units”, located within the Program’s eligible area, as described in Section 3.1.A. The Program provides this assistance in the form of deferred payment “silent” second priority loans as “Gap” financing toward the purchase price and closing costs of affordable housing units that will be occupied by the homebuyers as their primary residence. The Program will be administered by Name of Sub-recipient, or name of admin sub, if applicableSelfHelp Enterprises, (the “Program Operator”).

1.1. PROGRAM OUTREACH AND MARKETING
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. No person shall, on the grounds of age, ancestry, color, creed, physical or mental disability or handicap, marital or familial status, medical condition, national origin, race, religion, gender or sexual orientation be excluded, denied benefits or subjected to discrimination under the Program.

The Sponsor will ensure that all persons, including those qualified individuals with handicaps, have access to the Program.

A. The Fair Housing Lender and Accessibility logos will be placed on all outreach materials. Fair housing marketing actions will be based upon a characteristic analysis comparison (census data may be used) of the Program’s eligible area compared to the ethnicity of the population served by the Program (includes, separately, all applications given out and those receiving assistance) and an explanation of any underserved segments of the population. This information is used to show that protected classes (age, gender, ethnicity, race, and disability) are not being excluded from the Program. Flyers or other outreach materials, in English and any other language that is the primary language of a significant portion of the area residents, will be widely distributed in the Program-eligible area and will be provided to any local social service agencies. The Program may sponsor homebuyer seminars to help educate homebuyers about the home buying process and future responsibilities. Persons who have participated in local homebuyer seminars will be notified about the Program.

B. The Program Operator will work with local real estate agents and primary lenders to explain the Program requirements for eligible housing units and homebuyers, and to review Program processes. Local real estate agents and primary lenders will also be encouraged to have their customers participate in the Program.

C. 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 Program Sponsor will take appropriate steps to ensure effective communication with disabled housing applicants, residents and members of the public.

1.2. APPLICATION PROCESS AND SELECTION
A. The Sponsor maintains a waiting list of applicants. When applicants are placed on the list, they are sent a Program Brochure and Instructions to Homebuyer (Attachment G) and directed to the Program Operator’s HUD- and CalHomeapproved Homebuyer Counseling and Education Program. Each applicant must participate in the Homebuyer Counseling and Education Program and receive a certificate of completion to be eligible for the Sponsor’s Homebuyer Program.

B. Each applicant must participate in individual Housing Counseling as required by 24 CFR §92.254(a)(3) and 24 CFR §5.100 – 5.111, to be provided by a HUDcertified homebuyer counselor employed by an entity approved by HUD to provide housing counseling.

Housing counseling is independent, expert advice customized to the need of the consumer to address the consumer's housing barriers and to help achieve their housing goals, and must include the following processes: Intake; financial and housing affordability analysis; an action plan, except for reverse mortgage counseling; and a reasonable effort to have follow-up communication with the client when possible. The content and process of housing counseling must meet the standards outlined in 24 CFR part 214, which include:
• addressing unique financial circumstances or housing issues • focusing on ways of overcoming specific obstacles to achieving a housing goal such as repairing credit
• addressing a rental dispute, purchasing a home, locating cash for a down payment, and being informed of fair housing and fair lending requirements of the Fair Housing Act
• finding units accessible to persons with disabilities • avoiding foreclosure
• resolving a financial crisis
• except for reverse mortgage counseling, all counseling shall involve the creation of an action plan.

Acceptable forms of housing counseling include in-person, phone, and/or internet, as long as the client and counselor can have an individualized dialogue, with guidance and advice tailored to client’s needs. This includes creating a client budget, financial analysis, an action plan, and referrals to relevant resources such as down payment assistance programs or legal services
A copy of each borrowers’ certificate of completion must be placed into each homebuyer file maintained by the Program Operator.

C. Once the applicant’s name comes to the top of the waiting list, a phone interview is conducted to gather sufficient information concerning household size and composition, income, employment, and credit history to establish preliminary eligibility for Program participation. The potential homebuyer is advised to interview and compare lenders to start the pre-qualification process for a primary loan. Potential homebuyers are advised that funds will be available on a firstcome, first-served basis upon receipt of a complete application package and prequalification letter from the applicant’s primary lender.

D. The Program Operator will provide an income and asset form, submission, and lender cover letter to the potential homebuyer’s primary lender for completion. In addition to these documents, the primary lender must submit a complete application package and pre-qualification letter to the Program Operator on behalf of the applicant. Complete applications are processed on a first-come, first-served basis. Applications are deemed complete only if all information is completed the application is signed and dated, and a primary lender’s pre=qualification information is included. Incomplete applications are returned to the primary lender and will not be date/time stamped until complete.

E. Upon eligibility confirmation, the Program Operator will send both the potential homebuyer and primary lender the following documents: pre-qualification letter Program Brochure, Attachment (G) Instructions to Homebuyer, List of Participating Lenders, Attachment (E) Seller’s Lead-Based Paint Disclosure and the EPA Booklet (Protect Your Family from Lead in Your Home) and (F) Notice to Seller.

F. The potential homebuyer is given 90 days in order to find a qualified home and begin securing a primary loan for the housing unit. If during the 90-day time frame, the potential homebuyer is unable to purchase a home, an extension may be given. However, if it appears the potential homebuyer cannot participate in the Program, the reservation of funds expires and the next person on the waiting list is given an opportunity to participate in the Program.

1.3. THE HOME PURCHASE PROCESS
A. The following is a simplified example of how a primary lender would analyze a homebuyer’s finances to determine how much the homebuyer could afford to borrow from the primary lender towards homeownership.

DEBT SERVICE
FOR A FAMILY OF FOUR EARNING $3,388 PER MONTH

HOUSING PAYMENTS TOTAL OVERALL PAYMENTS
Principal & Interest Payment $ 865 $1,180 Housing
Insurance 82 +200 Other Debt Service
Taxes 233 $1,380 Total Debt Service
Total Housing Expense $1,180 (Overall debt service per month is 41% of $3,388) (PITI is 35% of $3,388)

OTHER HOUSEHOLD DEBT SERVICE
Car Payment $ 150
Credit Card Payment 50
Total Other Debt $ 200
A $865 per month loan payment equates to borrowing $143,000 at 5.88% for a 30 year term.

SUBSIDY CALCULATION
FOR A FAMILY OF FOUR EARNING $3,388 PER MONTH
Purchase Price of Property $ 280,000
Less Primary loan amount 143,000
Less down payment of 1% 2,800

Equals “GAP” $ 134,200
Plus estimated allowable settlement charges 8,400
Equals Total Subsidy $ 142,600
B. The housing unit selection process will be conducted by the homebuyers. Prior to making an offer to purchase an eligible housing unit (see Section 3.0), homebuyer shall provide seller with a disclosure containing the following provisions:
1) Homebuyer has no power of eminent domain and, therefore, will not acquire the property if negotiations fail to result in an amicable agreement; 2) Homebuyer’s offer is an estimate of the fair market value of the housing unit, to be finally determined by a state-licensed appraiser; 3) The housing unit will be subject to inspection. The housing unit must comply with local codes at the time of construction and local health and safety standards;
4) All housing units built prior to January 1, 1978, will require a lead paint disclosure to be signed by both the homebuyer and Seller (Attachment E); 5) Since the purchase would be voluntary, the seller would not be eligible for relocation payments or other relocation assistance;
6) The seller understands that the housing unit must be either: currently owneroccupied, newly constructed, or vacant for three months prior to submission of the purchase offer;
7) If the seller is not provided with a statement of the above six provisions prior to the purchase offer, the seller may withdraw from the agreement after this information is provided.

C. Applicant submits executed standard form purchase and sale agreement and primary lender prequalification letter to Program Operator. The purchase and sale agreement will be contingent on the household and housing unit meeting Program eligibility requirements and receiving Program loan approval. Program Operator verifies applicant eligibility, housing unit and loan eligibility and amount of assistance to be provided consistent with these guidelines.

D. Program Operator, where Program Operator is not the Sponsor, submits recommendation to the Sponsor for approval or denial, including the reasons for the recommendation. Sponsor determines Applicant’s approval or denial, and instructs Program Operator to notify Applicant. Program Operator provides written notification to Applicant of approval or denial with reason and, if denied, a copy of the Program’s appeal procedures.

E. When Primary Lender requirements are met, Program funds are deposited into escrow, with required closing instructions and loan documents.

F. At the time of escrow closing, the Sponsor shall be named as an additional loss payee on fire, flood (if required), and extended coverage insurance for the length of the loan and in an amount sufficient to cover all encumbrances or full replacement cost of the housing unit. A policy of Title Insurance naming the Sponsor as insured is also required.

1.4. HOMEBUYER COSTS
A. Eligible households must document that they have the funds necessary for down payment and closing costs as required by the Primary Lender and the Sponsor. The Program’s down payment requirement (below) is in place even if the Primary Lender has a lower down payment requirement. If the Primary Lender has a higher down payment requirement, there is no additional down payment requirement required by the Program.

B. Homebuyer must contribute a minimum down payment of one percent (1%) of the purchase price, but may contribute more if desired.

C. Sponsor will not provide a subsidy that is greater than the amount of the primary mortgage [OPTIONAL WORDING MAY BE ADDED TO FURTHER RESTRICT MAXIMUM ASSISTANCE AMOUNT]. The subsidy will write down the cost of the primary lender’s loan so that the payments of principal, interest, taxes, insurance, and mortgage insurance and HOA dues, if any, are within approximately 25 to 35% of the gross monthly household income. The Program Operator will determine the level of subsidy and affordability during underwriting of the Program’s loan to make sure that it conforms to the requirements of the HCD funding Program.

1.5. HOMEBUYER EDUCATION
Buying a home can be one of the most confusing and complicated transactions anyone can make. Providing the future homebuyer with informative homebuyer education training can bring success to the Sponsor, Program Operator, the Program and most importantly, the homebuyer. It has been documented that first-time homebuyers that have had homebuyer counseling have the ability to handle problems that occur with homeownership.

All Program participants are required to receive housing counseling prior to Program approval, provided by a HUD-certified housing counselor who works for an organization certified by HUD to perform housing counseling. A list of such counseling entities can be accessed here:
https://apps.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?searchstate=CA&filterLng=&filterSvc= &filterMultiState=&searchName=&searchCity=&searchZip=&searchService=PPC&searc hLang=&searchAffiliation=&webListAction=Search.

See Section 1.2.B. above for housing counseling requirements.

1.6. CONFLICT OF INTEREST REQUIREMENTS
When the Sponsor’s program contains Federal funds, the applicable Conflict of Interest requirements of 24 CFR Section 570.611 shall be followed for CDBG assistance, and for CalHome-funded programs, the applicable Conflict of Interest requirements of Public Contract Code sections 10410, 10411, and 10430 (e) shall be followed.. Section 92.356 of the HOME Final Rule shall be followed for HOME assistance, as follows:
(a) Conflicts prohibited. No persons described in paragraph (b) of this section who exercises or has exercised any functions or responsibilities with respect to activities assisted with HOME funds or who are in a position to participate in a decision making process or gain inside information with regard to these activities, may obtain a financial interest or benefit from a HOME-assisted activity, or have a financial interest in any contract, subcontract or agreement with respect to the HOME-assisted activity, or the proceeds from such activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for one year thereafter. Immediate family ties include (whether by blood, marriage or adoption) the spouse, parent (including stepparent), child (including stepchild), brother, sister (including a stepbrother or stepsister), grandparent, grandchild and in-laws of a covered person.
(b) Persons covered. The conflict of interest provisions of paragraph (a) of this section apply to any person who is an employee, agent, consultant, officer, or elected official or appointed official of the participating jurisdiction, State recipient, or subrecipient which are receiving HOME funds.
(c) Exceptions: Threshold requirements. Upon the written request of the participating jurisdiction to HCD, HUD may grant an exception to the provisions of paragraph (a) of this section on a case-by-case basis when it determines that the exception will serve to further the purposes of the HOME Investment Partnerships Program and the effective and efficient administration of the participating jurisdiction's program or project. See 24 CFR

92.356(d)(1-6) for details on the documentation needed in order to submit an exception request to HUD.

A contractor with a vested interest in the property cannot bid on a rehabilitation project.

Such a contractor may act as owner/builder, subject to standard construction procedures.

Owner/builders are reimbursed for materials purchased which are verified by invoice/receipt and used on the project. Reimbursement occurs after the installation is verified by the Program Operator to be part of the scope of work. Owner/builders are not reimbursed for labor.

1.7. NON-DISCRIMINATION REQUIREMENTS
The Program will be implemented in ways consistent with the Sponsor’s commitment to non-discrimination. No person shall be excluded from participation in, denied the benefit of, or be subject to discrimination under any program or activity funded in whole or in part with State funds on the basis of his or her religion or religious affiliation, age, race, color, creed, gender, sexual orientation, marital status, familial status (children), physical or mental disability, national origin, or ancestry, or other arbitrary cause.

2.0 APPLICANT QUALIFICATIONS

2.1. CURRENT INCOME LIMITS FOR THE AREA, BY HOUSEHOLD SIZE All applicants must certify that they meet the household income eligibility requirements for the applicable HCD program(s) and have their household income documented. The income limits in place at the time of loan approval will apply when determining applicant income eligibility. All applicants must have incomes at or below 80% of the County’s area median income (AMI), adjusted for household size, as published by HCD. (See Attachment C for current income limits).

Household: Means one or more persons who will occupy a housing unit. Unborn children

CHOOSE ONE AND DELETE THIS PROMPT AND ONE OF THESE TERMS, AND UNHIGHLIGHT: count/don’t count in family size determination. For CalHome, unborn children are not counted.

Annual Income: Generally, the gross amount of income of all adult household members that is anticipated to be received during the coming 12-month period.

2.2. INCOME QUALIFICATION CRITERIA
Projected annual gross income of the applicant household will be used to determine whether they are above or below the published HCD income limits. Income qualification criteria, as shown in the most recent HCD program-specific guidance at http://www.hcd.ca.gov/grants-funding/income-limits/income-calculation-anddetermination-guide.shtml, will be followed to independently determine and certify the household’s annual gross income. The Program Operator should compare this annual gross income to the income the Primary Lender used when qualifying the household. The Primary Lender is usually underwriting to FHA or conventional guidelines and may not calculate the household income or assets in the same way as required by the Program. Income will be verified by reviewing and documenting tax returns, copies of wage receipts, subsidy checks, bank statements and third-party verification of employment forms sent to employers. All documentation shall be dated within six months prior to loan closing and kept in the applicant file and held in strict confidence.

A. HOUSEHOLD INCOME DEFINITION:

Household income is the annual gross income of all adult household members that is projected to be received during the coming 12-month period, and will be used to determine program eligibility. Refer to Income Inclusions and Exclusions for further guidance to the types of incomes to be included or excluded when calculating gross annual income. For those types of income counted, gross amounts (before any deductions have been taken) are used. Two types of income that are not considered would be income of minors and live-in aides. Certain other household members living apart from the household also require special consideration. The household’s projected ability to pay must be used, rather than past earnings, when calculating income.

See Attachment A: 24 CFR Part 5 Annual Income Inclusions and Exclusions B. ASSETS:

There is no asset limitation for participation in the Program. Income from assets, however, is recognized as part of annual income under the Part 5 definition. An asset is a cash or non-cash item that can be converted to cash. The value of necessary items such as furniture and automobiles are not included. (Note: it is the income earned – e.g. interest on a savings account – not the asset value, which is counted in annual income.)
An asset’s cash value is the market value less reasonable expenses required to convert the asset to cash, including, for example, penalties or fees for converting financial holdings, and costs for selling real property. The cash value (rather than the market value) of an item is counted as an asset. For CalHome, the market value of an item is counted as an asset.

See Attachment B: Part 5 Annual Income Net Family Asset Inclusions and Exclusions

2.3. DEFINITION OF AN ELIGIBLE HOMEBUYER
For CDBG, an eligible homebuyer means an individual or individuals or an individual and his or her spouse who meets the income eligibility requirements and is/are not currently on title to real property. Persons may be on title of a manufactured home unit, who are planning to sell the unit as part of buying a home located on real property. Documentation of homebuyer status will be required for all homebuyers. CDBG-funded programs may assist eligible homebuyers who are not “first-time” homebuyers.

HOME and CalHome-funded programs are required to use the following definition of an eligible homebuyer, which is a “first-time homebuyer” from 8201(m) Title 25 California Code of Regulations:
“First-time homebuyer” means an individual or individuals or an individual and his or her spouse who have not owned a home during the three-year period before the purchase of a home with subsidy assistance, except that the following individual or individuals may not be excluded from consideration as a first-time homebuyer under this definition:

1. a displaced homemaker who, while a homemaker, owned a home with his or her spouse or resided in a home owned by the spouse. A displaced homemaker is an adult who has not, within the preceding two years, worked on a full-time basis as a member of the labor force for a consecutive twelve-month period and who has been unemployed or underemployed, experienced difficulty in obtaining or upgrading employment and worked primarily without remuneration to care for his or her home and family;

2. a single parent who, while married, owned a home with his or her spouse or resided in a home owned by the spouse. A single parent is an individual who is unmarried or legally separated from a spouse and has one or more minor children for whom the individual has custody or joint custody or is pregnant; or

3. an individual or individuals who owns or owned, as a principal residence during the three-year period before the purchase of a home with assistance, a dwelling unit whose structure is:
a. not permanently affixed to a permanent foundation in accordance with local or state regulations; or
b. not in compliance with state, local, or model building codes and cannot be brought into compliance with such codes for less than the cost of constructing a permanent structure.

3.0. HOUSING UNIT ELIGIBILITY

3.1. LOCATION AND CHARACTERISTICS
A. Housing units to be purchased must be located within the eligible area. The eligible area is described as follows: “Within the Name of City, or the unincorporated areas of the County of XXXTULARE.”
B. Housing unit types eligible for the homebuyer Program are new or previously owned single-family residences; condominiums; or manufactured homes in mobilehome parks, in common-interest developments or on a single-family lot and placed on a permanent foundation system. HOME does not allow manufactured homes unless on a permanent foundation system.

C. All housing units must be in compliance with State and local codes and ordinances.

D. Housing units located within a 100-year flood zone will be required to provide proof of flood insurance with an endorsement naming the Sponsor as loss payee in order to close escrow.

E. Housing must be “modest”, in accordance with the federal HOME regulations at 24 CFR Part 92.254(a)(2).

3.2. CONDITIONS
A. Construction Inspection and Determining Need for Repairs.

Once the participating homebuyer has executed a purchase agreement for a housing unit, and prior to a commitment of Program funds, the following steps must be taken for the housing unit to be eligible for purchase under the Program:
1) When the Sponsor’s Program utilizes Federal funds and if the housing unit was constructed prior to 1978 then the lead-based paint requirements of Section 3.2.C will apply.
2) The Program Operator, a certified housing inspector, or a Sponsor representative will walk through the housing unit, determine if it is structurally sound, and identify any code related and health and safety deficiencies that need to be corrected. A list of code related repair items will be given to the homebuyers and their Realtor to be negotiated with the seller. Only new construction and homes built within the previous 12 months and not previously occupied are not subject to a home inspection.

If there are one or more health and safety deficiencies, and/or violations of applicable building codes noted in the written report, the Sponsor will approve the subsidy only if:
a. Repair prior to close of escrow. The buyer and seller agree to make necessary repairs to the dwelling unit prior to transfer of property ownership at their own expense; or [DELETE EVERYTHING IN GREEN HERE AND JUST ABOVE IF NOT OFFERING OPTION “b”
b. HOME acquisition and rehabilitation loan. If HOME funds are available, the buyer may use some of the Sponsor’s First-Time Homebuyer loan and other funds to make necessary and other repairs, to a maximum of 100% combined loan-to-value, unless up to 105% based on the purchase transaction. All health and safety hazards and code violations must be addressed under this option. Examples of allowable expenses include, but are not limited to: foundation repair, electrical repair or rewiring, plumbing or sewer repair, roof repair or replacement, heating and cooling system installation or repair, water damage repair, and repair of structurally-significant damaged wood. Weatherization, energy-related improvements and General Property Improvements are allowable, but General Property Improvements are limited under the HOME Program to a maximum of 15% of the overall rehabilitation cost. Buyers should note that the use of any Program funds for rehabilitation on a home built before 1978 may incur additional lead-based paint testing. Hiring of a contractor and completion of repairs will be conducted in accordance with the section entitled “Acquisition with Rehabilitation Process” below. 3) With the exception of 1)b. above, upon completion of all work required by the Program Operator, Sponsor, appraiser, pest inspector and/or certified housing inspector, a final inspection will be conducted prior to close of escrow. The inspector will sign off on all required construction work assuring that each housing unit receiving Program assistance is in compliance with local codes and health and safety requirements at the time of purchase and prior to occupancy.

B. Per Section 8208 of the State HOME regulations, no additional HOME assistance, including rehabilitation funds, may be provided during the period starting one year following the filing of the Project Completion Report through the end of the Affordability Period.

The HOME Affordability Period is as follows (amount does not include Activity Delivery Costs paid to the State Recipient by HCD):

Amount of HOME Assistance Period of Affordability in Years Under $15,000 5 years
$15,000 to $40,000 10 years
Over $40,000 15 years
C. Lead-Based Paint Hazards: All housing units built prior to 1978 for which HOME or CDBG funding is anticipated are subject to the requirements of this section 3.2.C.

Such homes must undergo a visual assessment by a person who has taken HUD’s online Visual Assessment course. Deteriorated paint must be stabilized using work safe methods. Clearance must be obtained after paint stabilization by a DHS certified LBP Risk Assessor/Inspector. HOME and CDBG general administrative and activity delivery funds may be used to pay for lead-based paint visual assessments, and if lead mitigation and clearance costs are incurred, these programs may incorporate the costs into the calculation of Program assistance.

The following requirements must be met:
1) Notification: a) Prior to homebuyer’s obligation to purchase a pre-1978 home, the Buyer will be given the most recent copy of and asked to read the EPA pamphlet “Protect Your Family From Lead in Your Home”. (EPA 747-K-94-001). A signed receipt of the pamphlet will be kept in the Sponsor’s homebuyer file; b) A notice to residents is required following a risk assessment/inspection using form DHS 8552, which is provided by the DHS-certified Risk Assessor/Inspector; c) a notice to residents is required following lead-based paint mitigation work using Visual Assessment and Lead-based Paint Notice of Presumption and Hazard Reduction form, LBP – 1 (Attachment H).
2) Disclosure: Prior to the homebuyer’s obligation to purchase a pre-1978 housing unit, the HUD disclosure (Attachment E), “Seller’s Lead-based Paint Disclosure” notice must be provided by the seller to the homebuyer. 3) Inspections: The Inspector shall conduct a “Visual Assessment” of all the dwelling unit’s painted surfaces in order to identify deteriorated paint. All deteriorated paint will be stabilized in accordance with CFR 35.1330 (a) and (b); and a Clearance shall be made in accordance with CFR 35.1340.
4) Mitigation: If stabilization is required, the contractor performing the mitigation work must use appropriately trained workers. Prior to the contractor starting mitigation work the Program Operator shall obtain copies of the contractor’s and workers’ appropriate proof of LBP training, as applicable to the job in order to assure that only qualified contractors and workers are allowed to perform the mitigation.

D. The Program Operator will: 1) confirm that the housing unit is within the eligible area, 2) will review each proposed housing unit to ensure that it meets all eligibility criteria before funding, and 3) ensure a completed Lead Compliance Document Checklist is placed in each purchaser’s file (see Attachment I). [DELETE THIS AND THE REST IN GREEN BELOW IF NOT OFFERING ACQ.

WITH REHAB, AND MODIFY TABLE OF CONTENTS STARTING WITH 3.3]

3.3. ACQUISITION WITH REHABILITATION PROCESS
As noted above, when HOME funding is available for First-Time Homebuyer assistance, funds (from all sources) may be used to bring the unit into compliance with health and safety standards and/or to correct code violations. If such repairs are required, a portion of this money may be used to make accessibility modifications for a household member with a disability. Weatherization, energy-related improvements and General Property Improvements are allowable, but General Property Improvements are limited under the HOME Program to a maximum of 15% of the overall rehabilitation cost.

IMPORTANT: No later than six (6) months following close of escrow, repairs to the housing unit must address ALL health and safety and code issues, to be in compliance with HOME regulations; otherwise, the loan becomes due and payable.

If a portion of the Program loan is used for acquisition with rehabilitation, the following process will be followed:
• The buyer will be responsible for obtaining three (3) bids from qualified licensed contractors. The Sponsor’s Program Operator has a list of qualified contractors, or the applicant may solicit bids from other licensed contractors if they meet the standards described below.
• Any funds used for rehabilitation on homes built prior to 1978 will require testing for lead based paint. If the total rehabilitation funds are equal to or less than $5,000, all surfaces disturbed during rehabilitation and lead hazard reduction must be repaired using safe work practices. If total rehabilitation is between $5,000 and $10,000, lead based paint must either be presumed to be present or testing and risk assessment are required. Lead hazard reduction activities must be conducted using safe work practices. The Sponsor will provide a grant to cover all expenses incurred as a result of lead based paint as noted in the section entitled Lead Based Paint Standards below.
• Contractors must hold a current and valid State of California General Contractor’s license if the work consists of correction of health and safety issues or code violations. For accessibility modifications, the Sponsor may exercise discretion regarding contractors’ requirements. The contractor may not be on the State or Federal debarred contractor lists. The contractor must have current and valid general liability and workmen’s compensation insurance if applicable. The contractor must provide a one-year warranty for the work per State regulations. • The buyer will review the bids with the Program Operator to ensure that the scope of work will correct any deficiencies, that it only includes allowable expenses and that the bids are reasonable, competitive and complete. • The applicant will select a contractor from one of the Sponsor’s/Program Operator’s approved bids. All bidding contractors will be notified of the status of their proposals.
• The applicant will enter into a contract with the contractor (see Attachment J). • The contractor will be responsible for securing all required permits for the scope of work.
• Work may not commence until the close of the acquisition loan. • As work progresses, the contractor shall provide the buyer with a completed Payment and Construction Approval form (Attachment K) to request progress payments as outlined in the contract terms. The form must be signed by the contractor, the buyer, and the Program Operator before a payment may be issued to the contractor.
• Final payment of a 10% retention will be released to contractor once the contractor submits the following to the Program Operator: (1) lien releases from any subcontractors, material suppliers, and laborers; (2) final or signed off Building Inspection card for contracted work (if applicable); (3) Notice of Completion.

3.4. ANTI-DISPLACEMENT POLICY AND RELOCATION ASSISTANCE Eligible homes will be those that are currently owner-occupied or have been vacant for three months prior to the acceptance of a contract to purchase. A unit is ineligible if its purchase would result in the displacement of a tenant. It is not anticipated that the implementation of the Program will result in the displacement of any persons, households, or families.

However, if tenant-occupied homes are included in the Program and relocation becomes necessary, the activity will be carried out in compliance with Sponsor’s relocation plan, which describes how those permanently displaced will be relocated and paid benefits in accordance with the following Federal laws.

A. Uniform Relocation Assistance (URA) and Real Property Acquisition Policies Act of 1970
The federal URA and Real Property Acquisition Policies, as amended by the URA Amendments of 1987, contains requirements for carrying out real property acquisition or the displacement of a person, regardless of income status, for a project or program for which HUD financial assistance (including CDBG and HOME) is provided. Requirements governing real property acquisition are described in Chapter VIII. The implementing regulations, 49 CFR Part 24, require developers and owners to take certain steps in regard to tenants of housing to be acquired, rehabbed or demolished, including tenants who will not be relocated even temporarily.

B. Section104(d) of the Housing and Community Development Act of 1974 Section 104(d) requires each contractor (CHDO or State Recipient), as a condition of receiving assistance under HOME or CDBG, to certify that it is following a residential anti-displacement plan and relocation assistance plan. Section 104(d) also requires relocation benefits to be provided to low-income persons who are physically displaced or economically displaced as the result of a HOME or CDBG assisted project, and requires the replacement of low-income housing, which is demolished or converted. The implementing regulations for Section 104(d) can be found in 24 CFR Part 570(a).

3.5. PROPER NOTIFICATION AND DISCLOSURES
A. Upon selection of a housing unit, a qualified seller and homebuyer will be given the necessary disclosures for the Program. The homebuyer must have read and signed all Program disclosure forms. Any and all property disclosures must be reviewed and signed by the homebuyer and seller.

B. All owners who wish to sell their housing units must receive an acquisition notice (Attachment F) prior to submission of the homebuyer’s original offer. This notice will be included in the contract and must be signed by all owners on title. The disclosure must contain the items listed in 1.3.B. (required for federally-funded programs).

4.0. PURCHASE PRICE LIMITS
For HOME, the purchase price limits for this Program shall not exceed the HOME Homeownership Value Limit for Sponsor’s County as updated by HCD.

Note: For CalHome-funded loans, the home purchase price is limited as follows: The purchase price cannot exceed 100% of the area median purchase price as established by comparable sales or information provided by the California Real Estate Association at https://www.car.org/en/marketdata/data/countysalesactivity Attachment C: HOME HOMEOWNERSHIP VALUE LIMIT *Sponsor will update these limits annually as HCD provides new information.

5.0. THE PRIMARY LOAN
Prior to obtaining a loan from the Sponsor, a homebuyer must provide evidence of approval for the maximum amount the Primary Lender is willing to loan (the “primary loan”), which is limited by the maximum debt-to-income ratio identified herein.

5.1 QUALIFYING RATIOS
The front-end (housing) debt-to-income ratio shall be between 25% and 35% and is the percentage of a borrower’s gross monthly income (before deductions) that would cover the cost of the loan principal and interest payment, property taxes, property insurance, mortgage insurance, and HOA dues, if any.

The back-end (total) debt-to-income ratio shall be between 28% and 42% and is the percentage of a borrower’s gross monthly income that would cover the cost of housing as described in the paragraph above, plus any other monthly debt payments like car or personal loans and credit card debt, as well as child support and alimony payments.

Note: Qualifying ratio guidelines can be somewhat flexible depending on the loan-tovalue ratios. The higher the LTV, the more conservative the ratios should be. A qualifying ratio higher than the guidelines may be acceptable if there are compensating factors. Some examples of compensating factors are: 1) the prospective homebuyer has successfully demonstrated that over a minimum 12-month period the ability to pay housing costs equal to or greater than the proposed monthly housing costs for the home to be purchased; 2) the prospective homebuyer is a limited user of credit and they show a history of being able to save money; 3) there will be no more than a 5% increase in the prospective homebuyer’s housing expense. These exceptions will be approved by the Sponsor’s loan committee and documented for the file.

5.2 INTEREST RATE
As is required by the HOME NOFA, the primary loan must have a fixed interest rate that does not exceed, by greater than one percent, the FNMA 90-day rate, found at:
https://singlefamily.fanniemae.com/pricing-execution/historical-daily-required-net-yields.

The applicable FNMA rate should be from the date the primary mortgage rate was locked, or else the date of HOME loan approval. No temporary interest rate buy-downs are permitted.

5.3 LOAN TYPE AND TERM
The primary loan shall be fully amortized and have a term “all due and payable” in no fewer than 30 years. There shall not be a balloon payment due before the maturity date of the Program loan.

5.4 IMPOUND ACCOUNT
All households will be required to have impound accounts for the payment of taxes and insurance to ensure they remain current.

6.0. THE PROGRAM LOAN

6.1. MAXIMUM AMOUNT OF PROGRAM ASSISTANCE
For HOME, the amount of Program assistance to a homebuyer toward purchase of a home shall not exceed the maximum HOME subsidy limit for Sponsor’s County per bedroom per the HCD website at http://www.hcd.ca.gov/grants-funding/income-limits/state-and-federalincome-limits.shtml and shall never exceed the amount of the primary mortgage, without prior HCD programmatic approval. See Attachment C of these Program Guidelines for current limits. Any approved “grant” amount for lead-based paint evaluation and reduction activities or for relocation assistance shall be included in this amount, as shall Activity Delivery Costs.

For CalHome, the amount of Program assistance to a homebuyer toward purchase of a home shall not exceed 40% of the purchase price not to exceed $100,000. CDBG has no limit.

6.2 NON-RECURRING CLOSING COSTS
Non-recurring costs such as credit report, escrow, closing and recording fees, and title report and title insurance, title updates and/or related costs may be included in the Program loan.

6.3 AFFORDABILITY PARAMETERS FOR HOMEBUYERS
The actual amount of a buyer’s Program subsidy shall be computed according to the housing ratio parameters specified in Section 5.0.A.. Each borrower shall receive only the subsidy needed to allow them to become homeowners (“the Gap”) while keeping their housing costs affordable. The Program Operator will use the “front-end ratio” of housing-expense-toincome to determine if the amount of the proposed primary loan is acceptable and, ultimately, the Program subsidy amount required, bridging the gap between the acquisition cost (purchase price plus closing costs) less down payment, and the amount of the primary loan.

6.4 RATE AND TERMS FOR PROGRAM LOAN
All Program assistance to individual households shall be made in the form of deferred payment (interest and principal) loan (DPL).

For HOME and CDBG, the Program loan’s term shall be for as long as the primary loan, plus 15 years. For CalHome, the Program loan’s term shall be for 30 years. The interest rate shall be 0% simple interest.

Note – If it is determined by the Sponsor that repayment of a CalHome Program loan at the maturity date causes a hardship to the homeowner, the Sponsor may opt the following:

2. Convert the debt at loan maturity; that is the balance of the original principal plus any accrued interest, to an amortized loan, repayable in 15 years at 0% additional interest.

All Program loan payments shall be deferred because the borrowers will have their repayment ability fully utilized under the primary loan. Loan principal shall not be forgiven, and the loan period cannot be extended, except for loans that are resubordinated when a rate and term refinance is approved, per Attachment D.

6.5 COMBINED LOAN-TO-VALUE RATIO
For CalHome, the loan-to-value ratio for a Program loan, when combined with all other indebtedness to be secured by the property, shall not exceed 100 percent of the sales price, plus a maximum of up to 5 percent of the sales price, to cover actual, non-recurring closing costs.

For HOME and CDBG, the loan-to-value ratio for a Program loan, when combined with all other indebtedness to be secured by the property, shall not exceed 100 percent of the sales price plus a maximum of up to 5 percent of the sales price to cover actual closing costs.

7.0. PROGRAM LOAN REPAYMENT

7.1. PAYMENTS ARE VOLUNTARY
Borrowers may begin making voluntary payments at any time, without penalty.

7.2. RECEIVING LOAN PAYMENTS
A. Program loan payments will be made to:

Name of State RecipientCity of Tulare
Address411 E. Kern Avenue
City, State, ZipTulare, CA 93274
B. The Sponsor will be the receiver of loan payments or recaptured funds and will maintain a financial record-keeping system to record payments and file statements on payment status. Payments shall be deposited and accounted for in the Sponsor’s Program Income Account, as required by HCD programs. The Program lender will accept loan payments from borrowers prepaying deferred loans, and from borrowers making payments in full upon sale or transfer of the property. All loan payments are payable to the Sponsor. The Sponsor may at its discretion, enter into an agreement with a third party to collect and distribute payments and/or complete all loan servicing aspects of the Program.

7.3. DUE UPON SALE OR TRANSFER
In the event that an owner sells, transfers title, or discontinues residence in the purchased property for any reason, the principal balance of the DPL is due and payable, except:

A. For CalHome, loans are not assumable. The following transfers of interest shall not require the repayment of the CalHome Program loan:
1) transfer to a surviving joint tenant by devise, descent, or operation of law on the death of a joint tenant;
2) a transfer, in which the transferee is a person who occupies or will occupy the property, which is:
a. a transfer where the spouse becomes an owner of the property; b. a transfer resulting from a decree of dissolution of marriage, legal separation agreement, or from an incidental property settlement agreement by which the spouse becomes an owner of the property; or c. a transfer into an inter vivos trust in which the borrower is and remains the beneficiary and occupant of the property.

B. For HOME and CDBG, if the owner of the property dies, and the heir to the property meets income requirements, the First-Time Homebuyer definition, and intends to occupy the home as a principal residence, the heir may be permitted, upon approval of the Sponsor, to assume the loan at the rate and terms the heir qualifies for under the current participation guidelines. If the property owner dies and the heir does not meet eligibility requirements, the loan is due and payable.

C. If an owner wants to convert the property to a rental unit, or any commercial or non-residential use, the loan is due and payable.

D. The loan will be in default if the borrower fails to maintain required fire or flood insurance or fails to pay property taxes. See Attachment D on loan defaults for further information on property restrictions.

7.4. LOAN SERVICING POLICIES AND PROCEDURES
See Attachment D for local loan servicing policies and procedures. While the attached policy outlines a system that can accommodate a crisis that restricts borrower repayment ability, it should in no way be misunderstood: The loan must be repaid. All legal means to ensure the repayment of a delinquent loan as outlined in the Loan Servicing Policies and Procedures will be pursued.

7.5. LOAN MONITORING PROCEDURES
Sponsor will monitor Borrowers and their housing units annually to ensure adherence to Program requirements including, but not limited to, the following:

A. Owner-occupancy
B. Property tax payment
C. Hazard insurance coverage
D. Good standing on Primary loans
E. General upkeep of housing units

8.0. PROGRAM LOAN PROCESSING AND APPROVAL
A. Loan Processing
All homebuyers or their representatives will be sent out an eligibility packet with all the necessary forms, disclosures, information, and application. They should submit a complete application packet with all the Sponsor’s Program loan documents executed as well as all the information from the Primary Lender. The Primary Lender should submit: 1) accepted property sales contract with proper seller notification; 2) mortgage application with good faith estimates and first mortgage disclosures; 3) full mortgage credit report and rent verification; 4) current third-party income verifications and verifications of assets; 5) homeownership education certificate, if applicable; and 6) signed underwriting transmittal summary and final signed loan application, both from primary lender. Staff will work with local lenders to ensure qualified participants receive only the benefit from the Sponsor’s Program needed to purchase the housing unit and that leveraged funds will be used when possible.

B. Creditworthiness
Qualifying ratios are only a rough guideline in determining a potential borrower’s creditworthiness. Many factors such as excellent or poor credit history, amount of down payment, and size of loan will influence the decision to approve or disapprove a particular loan. The borrower’s credit history will be reviewed by the Sponsor and documentation of such maintained in the loan file. The Sponsor may elect to obtain a credit report or rely on a current copy obtained by the primary lender.

C. Documents from Primary Lender
After initial review of the qualified homebuyer's application packet, the Program Operator will request any additional documents needed. Documents may be faxed, but originals shall be received through the mail before Program funds are committed to escrow. Based on receipt and review of the final documents, the Program Operator will do an income certification (using most recent HCD program’s guidance on income calculation and determination), and homebuyer certification (review of credit report and income taxes). Documentation of affordability will then be verified, and the subsidy requirement determined.

D. Disclosure of Program and Loan Information to Homebuyers The Program’s application and disclosure forms will contain a summary of the loan qualifications of the borrower with and without Program assistance. Housing ratios with and without Program assistance are also outlined in these guidelines.

Information on the Program’s application will be documented with third-party verifications in the file. For example, the sales contract will provide the final purchase price and outline how much of the closing costs are to be paid by the seller, etc. The appraisal, termite and title report will provide information to substantiate the information in the sales contract and guide the construction inspection. The Program loan application will provide current debt and housing information and will be documented by the credit report and income/asset verifications. The Primary Lender’s approval letter and estimated closing cost statement should reflect all the information in the loan package and show any contingencies of loan funding.

Reviewing the Primary Lender’s loan underwriting documentation will provide basic information about the qualification of the applicant and substantiate the affordability provided by the Program loan. By reviewing and crosschecking all the Primary Lender information, the final Program loan amount approved will fall within the affordability parameters of the Program.

8.1. COMPLETION OF UNDERWRITING AND APPROVAL OF PROGRAM LOAN Once the loan approval package has been completed the Program Operator will submit it to the Sponsor for approval. Sponsor will review the request and may approve it with or without conditions. Upon approval, a final closing date for escrow is set and Program funds are accessed for the homebuyer.

8.2. PRIMARY AND PROGRAM LOAN DOCUMENT SIGNING
The homebuyer(s) sign promissory notes, loan agreements, deeds of trust, and statutory lending notices (Truth In Lending (TIL), etc.); the Deeds of Trust are recorded with the County Clerk/Recorder at the same time, and the request(s) for copy of Notice of Default are also recorded with the County Clerk/Recorder.

8.3. ESCROW PROCEDURES
The escrow/title company shall review the escrow instruction provided by the Program lender and shall issue a California Land Title Association (CLTA) and the American Land Title Association (ALTA) after closing. The CLTA policy is issued to the homebuyer and protects them against failure of title based on public records and against such unrecorded risks as forgery of a deed. The ALTA is issued to each lender providing additional coverage for the physical aspects of the property as well as the homebuyer’s title failure. These aspects include anything which can be determined by only physical inspection, such as correct survey lines; encroachments; mechanics liens; mining claims and water rights. The Program lender instructs the escrow/title company in the escrow instructions as to what may show on the policy; the amount of insurance on the policy (all liens should be covered) and the loss payee (each lender should be listed as a loss payee and receive an original ALTA).

9.0. SUBORDINATE FINANCING
Subordinate loans may be used to cover mortgage subsidy costs that exceed the Program maximum loan amount. All subordinate liens must have the payments deferred and the term must be for at least as long as the term of the Program loan.

10.0. EXCEPTIONS AND SPECIAL CIRCUMSTANCES
The Sponsor may make amendments to these Participation Guidelines. Any changes shall be made in accordance with regulations and approved by the Sponsor’s HOME Program Representative or Program Manager. If internally required, the Sponsor’s Loan Committee and/or governing body would then need to approve said changes.

10.1. DEFINITION OF EXCEPTION
Any case to which a standard policy or procedure, as stated in the guidelines, does not apply or an applicant treated differently from others of the same class would be an exception.

10.2. PROCEDURES FOR EXCEPTIONAL CIRCUMSTANCES
A. The Sponsor or its agent may initiate consideration of an exception and prepare a report. This report shall contain a narrative, including the Sponsor's recommended course of action and any written or verbal information supplied by the applicant.

11.0. DISPUTE RESOLUTION AND APPEALS PROCEDURE
Any applicant denied assistance from the Program has the right to appeal. Complaints concerning the Program should be made to the Program Operator first. If unresolved in this manner, the complaint or appeal must be made in writing and filed with the Sponsor. The Sponsor will then schedule a meeting with the Loan Review Committee. Their written response will be made within thirty (30) working days. If the applicant is not satisfied with the Committee's decision, a request for an appeal may be filed with the Sponsor’s governing body. Final appeal must be filed in writing with HCD within one year after denial.

ATTACHMENT A
24 CFR Part 5 ANNUAL INCOME INCLUSIONS AND EXCLUSIONS
24 CFR Part 5 Annual Income Inclusions
§5.609 Annual income.
(a) Annual income means all amounts, monetary or not, which:
(1) Go to, or on behalf of, the family head or spouse (even if temporarily absent) or to any other family member; or
(2) Are anticipated to be received from a source outside the family during the 12-month period following admission or annual reexamination effective date; and (3) Which are not specifically excluded in paragraph (c) of this section. (4) Annual income also means amounts derived (during the 12-month period) from assets to which any member of the family has access.
(b) Annual income includes, but is not limited to:
(1) The full amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services; (2) The net income from the operation of a business or profession. Expenditures for business expansion or amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation of assets used in a business or profession may be deducted, based on straight line depreciation, as provided in Internal Revenue Service regulations. Any withdrawal of cash or assets from the operation of a business or profession will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the family;
(3) Interest, dividends, and other net income of any kind from real or personal property.

Expenditures for amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation is permitted only as authorized in paragraph (b)(2) of this section. Any withdrawal of cash or assets from an investment will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested by the family. Where the family has net family assets in excess of $5,000, annual income shall include the greater of the actual income derived from all net family assets or a percentage of the value of such assets based on the current passbook savings rate, as determined by HUD; (4) The full amount of periodic amounts received from Social Security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, and other similar types of periodic receipts, including a lump-sum amount or prospective monthly amounts for the delayed start of a periodic amount (except as provided in paragraph (c)(14) of this section); (5) Payments in lieu of earnings, such as unemployment and disability compensation, worker's compensation and severance pay (except as provided in paragraph (c)(3) of this section); (6) Welfare assistance payments.
(i) Welfare assistance payments made under the Temporary Assistance for Needy Families (TANF) program are included in annual income only to the extent such payments:
(A) Qualify as assistance under the TANF program definition at 45 CFR 260.31; and
(B) Are not otherwise excluded under paragraph (c) of this section. (ii) If the welfare assistance payment includes an amount specifically designated for shelter and utilities that is subject to adjustment by the welfare assistance agency in accordance with the actual cost of shelter and utilities, the amount of welfare assistance income to be included as income shall consist of:
(A) The amount of the allowance or grant exclusive of the amount specifically designated for shelter or utilities; plus
(B) The maximum amount that the welfare assistance agency could in fact allow the family for shelter and utilities. If the family's welfare assistance is ratably reduced from the standard of need by applying a percentage, the amount calculated under this paragraph shall be the amount resulting from one application of the percentage.
(7) Periodic and determinable allowances, such as alimony and child support payments, and regular contributions or gifts received from organizations or from persons not residing in the dwelling;
(8) All regular pay, special pay and allowances of a member of the Armed Forces (except as provided in paragraph (c)(7) of this section).
(9) For section 8 programs only and as provided in 24 CFR 5.612, any financial assistance, in excess of amounts received for tuition and any other required fees and charges, that an individual receives under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), from private sources, or from an institution of higher education (as defined under the Higher Education Act of 1965 (20 U.S.C. 1002)), shall be considered income to that individual, except that financial assistance described in this paragraph is not considered annual income for persons over the age of 23 with dependent children. For purposes of this paragraph, “financial assistance” does not include loan proceeds for the purpose of determining income.
24 CFR Part 5 Annual Income Exclusions
(c) Annual income does not include the following:
(1) Income from employment of children (including foster children) under the age of 18 years; (2) Payments received for the care of foster children or foster adults (usually persons with disabilities, unrelated to the tenant family, who are unable to live alone); (3) Lump-sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and worker's compensation), capital gains and settlement for personal or property losses (except as provided in paragraph (b)(5) of this section); (4) Amounts received by the family that are specifically for, or in reimbursement of, the cost of medical expenses for any family member;
(5) Income of a live-in aide, as defined in §5.403;
(6) Subject to paragraph (b)(9) of this section, the full amount of student financial assistance paid directly to the student or to the educational institution; (7) The special pay to a family member serving in the Armed Forces who is exposed to hostile fire; (8) (i) Amounts received under training programs funded by HUD; (ii) Amounts received by a person with a disability that are disregarded for a limited time for purposes of Supplemental Security Income eligibility and benefits because they are set aside for use under a Plan to Attain Self-Sufficiency (PASS); (iii) Amounts received by a participant in other publicly assisted programs which are specifically for or in reimbursement of out-of-pocket expenses incurred (special equipment, clothing, transportation, child care, etc.) and which are made solely to allow participation in a specific program;
(iv) Amounts received under a resident service stipend. A resident service stipend is a modest amount (not to exceed $200 per month) received by a resident for performing a service for the PHA or owner, on a part-time basis, that enhances the quality of life in the development. Such services may include, but are not limited to, fire patrol, hall monitoring, lawn maintenance, resident initiatives coordination, and serving as a member of the PHA's governing board. No resident may receive more than one such stipend during the same period of time;
(v) Incremental earnings and benefits resulting to any family member from participation in qualifying State or local employment training programs (including training programs not affiliated with a local government) and training of a family member as resident management staff. Amounts excluded by this provision must be received under employment training programs with clearly defined goals and objectives, and are excluded only for the period during which the family member participates in the employment training program;
(9) Temporary, nonrecurring or sporadic income (including gifts); (10) Reparation payments paid by a foreign government pursuant to claims filed under the laws of that government by persons who were persecuted during the Nazi era; (11) Earnings in excess of $480 for each full-time student 18 years old or older (excluding the head of household and spouse);
(12) Adoption assistance payments in excess of $480 per adopted child; (13) [Reserved]
(14) Deferred periodic amounts from supplemental security income and Social Security benefits that are received in a lump sum amount or in prospective monthly amounts, or any deferred Department of Veterans Affairs disability benefits that are received in a lump sum amount or in prospective monthly amounts.
(15) Amounts received by the family in the form of refunds or rebates under State or local law for property taxes paid on the dwelling unit;
(16) Amounts paid by a State agency to a family with a member who has a developmental disability and is living at home to offset the cost of services and equipment needed to keep the developmentally disabled family member at home; or
(17) Amounts specifically excluded by any other Federal statute from consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance under any program to which the exclusions set forth in 24 CFR 5.609(c) apply.

A notice will be published in the FEDERAL REGISTER and distributed to PHAs and housing owners identifying the benefits that qualify for this exclusion. Updates will be published and distributed when necessary. [See https://www.federalregister.gov/documents/2014/05/20/2014- 11688/federally-mandated-exclusions-from-income-updated-listing for most recent notice] (d) Annualization of income. If it is not feasible to anticipate a level of income over a 12-month period (e.g., seasonal or cyclic income), or the PHA believes that past income is the best available indicator of expected future income, the PHA may annualize the income anticipated for a shorter period, subject to a redetermination at the end of the shorter period.

ATTACHMENT A-1
Title 25 Section 6914 Gross Income Inclusions – For CalHome activities “Gross income” shall mean the anticipated income of a person or family for the twelve-month period following the date of determination of income.
“Income” shall consist of the following:
(a) Except as provided in subdivision (b), “Exclusions”, all payments from all sources received by the family head (even if temporarily absent) and each additional member of the family household who is not a minor shall be included in the annual income of a family. Income shall include, but not be limited to:
(1) The gross amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses;
(2) The net income from operation of a business or profession or from rental or real or personal property (for this purpose, expenditures for business expansion or amortization of capital indebtedness shall not be deducted to determine the net income from a business); (3) Interest and dividends;
(4) The full amount of periodic payments received from social security, annuities, insurance policies, retirement funds, pensions, disability or death benefits and other similar types of periodic receipts;
(5) Payments in lieu of earnings, such as unemployment and disability compensation, worker’s compensation and severance pay;
(6) Public Assistance. If the public assistance payment includes any amount specifically designated for shelter and utilities which is subject to adjustment by the public assistance agency in accordance with the actual cost of shelter and utilities, the amount of public assistance income to be included as income shall consist of:
(A) The amount of the allowance or grant exclusive of the amount specifically designated for shelter and utilities, plus
(B) The maximum amount which the public assistance agency could in fact allow for the family for shelter and utilities,
(7) Periodic and determinable allowances such as alimony and child support payments, and regular contributions or gifts from persons not residing in the dwelling; All regular pay, special pay and allowances of a member of the Armed Forces (whether or not o is head of the family or spouse.

HCD Version 06/2021
Title 25 Section 6914 Gross Income Exclusions
(b) The following items shall not be considered as income:
(1) Casual, sporadic or irregular gift items;
(2) Amounts which are specifically for or in reimbursement of the cost of medical expenses;
(3) Lump-sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and worker’s compensation), capital gains and settlement for personal or property losses;
(4) Amounts of educational scholarships paid directly to the student or to the educational institution, and amounts paid by the government to a veteran for use in meeting the costs of tuition, fees, books and equipment. Any amounts ofsuch scholarships, or paymentsto veterans not used for the above purposes of which are available for subsistence are to be included in income;
(5) The special pay to a serviceman head of a family away from home and exposed to hostile fire; (6) Relocation payments made pursuant to federal, state, or local relocation law; (7) Foster child care payments;
(8) The value of coupon allotments for the purchase of food pursuant to the Food Stamp Act of 1964 which is an excess of the amount actually charged the eligible household; (9) Payments received pursuant to participation of the following volunteer programs under the ACTION Agency:
(A) National Volunteer Antipoverty Programs which include VISTA, Service Learning Programs and Special Volunteer Programs.
(B) National Older American Volunteer Program for persons aged 60 and over which include Retired Senior Volunteer Programs, Foster Grandparent Program, older American Community Services Program, and National Volunteer Program to Assist Small Business Experience, Service Corps of Retired Executive (SCORE) and Active Corps of Executives (ACE).

Name of State RecipientCity of Tulare Homebuyer Program Guidelines Page 29

ATTACHMENT B
PART 5 ANNUAL INCOME NET FAMILY ASSET INCLUSIONS AND EXCLUSIONS This table presents the 24 CFR Part 5 asset inclusions and exclusions as stated in the HUD Technical Guide for Determining Income and Allowances for HOME Program (Third Edition; January 2005).

Inclusions

1. Cash held in savings accounts, checking accounts, safe deposit boxes, homes, etc. For savings accounts, use the current balance.

For checking accounts, use the average 6-month balance. Assets held in foreign countries are considered assets.

2. Cash value of revocable trusts available to the applicant.

Under HOME, equity in the family's primary residence is not considered in the calculation of assets for owner-occupied rehabilitation projects.

4. Cash value of stocks, bonds, Treasury bills, certificates of deposit and money market accounts.

5. Individual retirement, 401(K), and Keogh accounts (even though withdrawal would result in a penalty).

6. Retirement and pension funds.

7. Cash value of life insurance policies available to the individual before death (e.g., surrender value of a whole life or universal life policy).

8. Personal property held as an investment such as gems, jewelry, coin collections, antique cars, etc.

9. Lump sum or one-time receipts, such as inheritances, capital gains, lottery winnings, victim's restitution, insurance settlements and other amounts not intended as periodic payments.

10. Mortgages or deeds of trust held by an applicant.

Exclusions

1. Necessary personal property, except as noted in number 8 of Inclusions, such as clothing, furniture, cars and vehicles specially equipped for persons with disabilities.

2. Interest in Indian trust lands.

4. Equity in cooperatives in which the family lives.

5. Assets not accessible to and that provide no income for the applicant.

6. Term life insurance policies (i.e., where there is no cash value).

7. Assets that are part of an active business. "Business" does not include rental of properties that are held as an investment and not a main occupation.

Name of State RecipientCity of Tulare Homebuyer Program Guidelines Page 30

ATTACHMENT C

HOME HOMEOWNERSHIP VALUE LIMITS FOR XXXTULARE COUNTY
(Limits became effective 6/1/2021)

EXISTING

CONSTRUCTION
NEW
CONSTRUCTION (less
than 12 months old)
$XXX,XXX243,000 $XXX,XXX304,000
[Note from HOME to remove: if you have exception limits approved by HOME, modify this table as needed and indicate from/through date of the exception] For CalHome the purchase price is limited as follows: The purchase price cannot exceed 100% of the area median purchase price as established by comparable sales or information provided by the California Real Estate Association which can be found at the following link https://www.car.org/en/marketdata/data/countysalesactivity

CALHOME MAXIMUM SUBSIDY LIMIT
Maximum assistance is identified in the most current NOFA. The Current CalHome Program loan maximum for Homebuyer Assistance is 40% of the purchase price not to exceed $100,000

HOME PROGRAM SUBSIDY LIMITS PER UNIT FOR XXXTULARE COUNTY (Limits became effective 9/9/2021)
O-BDR 1-BDR 2-BDR 3-BDR 4-BDR
$153,314 $175,752 $213,718 $276,482 $303,490
INCOME LIMITS FOR XXXTULARE COUNTY*
(Limits became effective 6/1/2021)
Number of Persons in Household
1 2 3 4 5 6 7 8
80% of
AMI
$39,050 $44,600 $50,200 $55,750 $60,250 $64,700 $69,150 $73,600 HCD 2021 INCOME LIMITS FOR CALHOME

ADJUSTED FOR FAMILY SIZE FOR TULARE COUNTY
Income 1 2 3 4 5 6 7 8
80% $39,150 $44,750 $50,350 $55,900 $60,400 $64,850 $69,350 $73,800 *Sponsor will insert the limits for the county in which the Program is located, and will update the income limits annually as HCD provides new information. The link to the official, HCD-maintained Value, Subsidy, and Income limits is:
http://www.hcd.ca.gov/grants-funding/income-limits/state-and-federal-incomelimits.shtml (for HOME and CDBG limits, choose “State CDBG, HOME and NHTF - Income, Value and Rent Limits”; for CalHome income limits, choose “Official State Income Limits”) Name of State RecipientCity of Tulare Homebuyer Program Guidelines Page 31

SPONSOR STANDARDS FOR BEDROOMS AND BATHROOMS TO PREVENT

OVERCROWDING
Maximum No. of
Persons in the
Household
Number of Bedrooms Minimum Number of
Bathrooms
1 SRO 1
1 0-BR 1
2 1-BR 1
4 2-BR 2
6 3-BR 2
8 4-BR 2
10 5-BR 3
12 6-BR 3

SEE ADDITIONAL OCCUPANCY FACTORS ON THE FOLLOWING PAGE
• Children may share a bedroom, up to 2 children per bedroom. • Children shall be permitted a separate bedroom from their parents. • Adults not in a partner relationship may have their own bedroom. • Same rules apply to mobile home units.

The chart on the page above is used as a guide to overcrowding.

Name of State RecipientCity of Tulare Homebuyer Program Guidelines Page 32

ATTACHMENT D

LOAN SERVICING POLICIES AND PROCEDURES

FOR NAME OF STATE RECIPIENTCITY OF TULARE
The Name of State RecipientCity of Tulare, hereafter called “Lender,” has adopted these policies and procedures in order to preserve its financial interest in properties whose “Borrowers” have been assisted with public funds. The Lender will to the greatest extent possible follow these policies and procedures, but each loan will be evaluated and handled on a case-by-case basis. The Lender has formulated this document to comply with state and federal regulations regarding the use of these public funds and any property restrictions, which are associated with them.

The policies and procedures are broken down into the following areas: 1) making required monthly payments or voluntary payments on a loan’s principal and interest; 2) required payment of property taxes and insurance; 3) required Request for Notice of Default on all second mortgages; 4) loans with annual occupancy restrictions and certifications 5) required noticing and limitations on any changes in title or use of property; 6) required noticing and process for requesting a subordination during a refinance; 7) processing of foreclosure in case of default on the loan.

1. Loan Repayments:

The Lender will collect monthly payments from those borrowers who are obligated to do so under Notes which are amortized promissory notes (or Lender will use _____________________ loan collection Company to collect payments). Late fees will be charged for payments received after the assigned monthly due date.

For Notes which are deferred payment loans, the Lender must accept voluntary payments on the loan. Loan payments will be credited to principal. The Borrower may repay the loan balance at any time with no penalty.

2. Payment of Property Taxes and Insurance:

As part of keeping the loan from going into default, borrower must maintain property insurance coverage naming the Lender as loss payee. If Borrower fails to maintain the necessary insurance, the Lender may take out force placed insurance to cover the property while the Borrower puts a new insurance policy in place. All costs for installing the necessary insurance will be added to the loan balance, except for HOME-funded loans, at time of installation of Borrower’s new insurance.

When a property is located in a 100-year flood plain, the Borrower will be required to carry the necessary flood insurance. A certificate of insurance for flood and for standard property insurance with an endorsement naming the City? County? as lender loss payee will be required at close of escrow. The lender will verify the insurance on an annual basis.

Property taxes must be kept current during the term of the loan. If the Borrower fails to maintain payment of property taxes then the lender may pay the taxes current and add the balance of the tax payment plus any penalties to the balance of the loan (not permissible when funded with HOME).

To prevent these issues, the Lender requires the Borrower to have impound accounts set up with their first mortgagee, wherein they pay their property taxes and homeowner’s insurance as part of their monthly mortgage payment.

Name of State RecipientCity of Tulare Homebuyer Program Guidelines Page 33

3. Required Request for Notice of Default:

When the Borrower’s loan is in second position behind an existing first mortgage, it is the Lender's policy to prepare and record a "Request for Notice of Default" for each senior lien in front of Lender’s loan. This document requires any senior lienholder listed in the notice to notify the lender of initiation of a foreclosure action. The Lender will then have time to contact the Borrower and assist them in bringing the first loan current, if possible. The Lender can also monitor the foreclosure process and go through the necessary analysis to determine if the loan can be made whole or preserved. When the Lender is in a third position and receives notification of foreclosure from only one senior lienholder, it is in their best interest to contact any other senior lienholders regarding the status of their loans.

4. Annual Occupancy Restrictions and Certifications:

On owner-occupant loans, the Lender will require that Borrowers submit utility bills and/or other documentation annually to prove occupancy during the term of the loan. For CDBG, loan terms may have income and housing cost evaluations, which require a household to document that they are not able to make amortized loan payments, typically every five years. These loan terms are incorporated in the original Note and Deed of Trust. On HOME-funded loans, annual occupancy verification will occur between January 1 and 15 of each year for the term of the loan].

Occupancy will be verified, reviewed and certified by the submission of the following:

A. Proof of occupancy in the form of a copy of a current utility bill; and B. Statement of unit's continued use as primary residence of the owner.

C. Declaration that other title holders do not reside on the premises; D. Verification that Property Taxes are current; and
E. Verification of current required insurance policies.

5. Required Noticing and Restrictions on Any Changes of Title or Occupancy:

In all cases where there is a change in title or occupancy or use, the Borrower must notify the Lender in writing of any change. Lender and Borrower will work together to ensure the property is kept in compliance with the original Program terms and conditions such that it remains available as an affordable home for low-income families. These types of changes are typical when Borrowers do estate planning (adding a relative to title) or if a Borrower dies and property is transferred to heirs or when the property is sold or transferred as part of a business transaction. In some cases, the Borrower might move and turn the property into a rental unit without notifying the Lender.

Changes in title or occupancy must be in keeping with the objective of benefit to low-income households (below 80 percent of AMI).

Change from owner-occupant to owner-occupant occurs at a sale. When a new owner-occupant is not low-income, the loan is not assumable and the loan balance is immediately due and payable. If the new owner-occupant qualifies as low-income, the purchaser may either pay the loan in full or assume all loan repayment obligations of the original owner-occupant, subject to the approval of the Lender’s Loan Committee (depends on the HCD program). Note – CalHome loans are not assumable.

If a transfer of the property occurs through inheritance, the heir (as owner-occupant) may be provided the opportunity to assume the loan at an interest rate based on household size and household income, provided the heir is income eligible. If the heir intends to occupy the property and is not low-income, the balance of the loan is due and payable. For CDBG only, if the heir intends to act as an owner-investor (not permitted under HOME), the balance of the loan may be Name of State RecipientCity of Tulare Homebuyer Program Guidelines Page 34 converted to an owner/investor interest rate and loan term and a rent limitation agreement is signed and recorded on title. All such changes are subject to the review and approval of the Lender’s Loan Committee. Note – CalHome loans are not assumable.

Conversion to use other than residential use is not allowable where the full use of the property is changed from residential to commercial or other. In some cases, Borrowers may request that the Lender allow for a partial conversion where some of the residence is used for a business but the household still resides in the property. Partial conversions can be allowed if it is reviewed and approved by any and all agencies required by local statute. If the use of the property is converted to a fully non-residential use, the loan balance is due and payable.

For CalHome, the following transfers of interest shall not require the repayment of the CalHome Program loan:

A. transfer to a surviving joint tenant by devise, descent, or operation of law on the death of a joint tenant;
B. a transfer, in which the transferee is a person who occupies or will occupy the property, which is:
1) a transfer where the spouse becomes an owner of the property; 2) a transfer resulting from a decree of dissolution of marriage, legal separation agreement, or from an incidental property settlement agreement by which the spouse becomes an owner of the property; or
3) a transfer into an inter vivos trust in which the Borrower is and remains the beneficiary and occupant of the property.

6. Requests for Subordinations:

When a Borrower wishes to refinance their existing first mortgage, they must submit a subordination request to the Lender. The Lender will subordinate their loan only when there is no “cash out” as part of the refinance. No cash out means there are no additional charges on the transaction above loan and escrow closing fees. There can be no third-party debt payoffs or additional encumbrances on the property above traditional refinance transaction costs. The refinance should lower the existing housing cost of the household. The total indebtedness on the property should not exceed the current market value except when the borrower is obtaining a HARP II or other similar federally approved refinance loan. If the HARP II or other similar financing is approved and meets all other requirements, Combined Loan-To-Value will not be considered when reviewing the subordination request.

Also, the loan must:

1. be fully amortized and have a fixed interest rate that does not exceed the current market rate, as established by an index identified in the most recent NOFA;

2. not have a temporary interest rate buy-down;

3. have a term “all due and payable” that matures prior to or concurrently with the maturity date of the Promissory Note. Therefore, the maturity date of the existing Promissory Note should be modified to coincide with the maturity date of the new first mortgage; and,

4. not have a balloon payment due before the maturity date of the Program loan.

Name of State RecipientCity of Tulare Homebuyer Program Guidelines Page 35 Upon receiving the proper documentation from the refinance lender, the request will be considered by the loan committee for review and approval. Upon approval, the escrow company will provide the proper subordination document for execution and recordation by the Lender.

7. Process for Loan Foreclosure:

Upon any condition of loan default: 1) non-payment; 2) lack of insurance or property tax payment; 3) change in title or use without approval; 4) default on senior loans, the Lender will send out a letter to the Borrower notifying them of the default situation. If the default situation continues then the Lender may start a formal process of foreclosure.

When a senior lienholder starts a foreclosure process and the Lender is notified via a Request for Notice of Default, the Lender, who is the junior lienholder, may cancel the foreclosure proceedings by "reinstating" the senior lienholder. The reinstatement amount or payoff amount must be obtained by contacting the senior lienholder. This amount will include all delinquent payments, late charges and fees to date. Lender must confer with Borrower to determine if, upon paying the senior lienholder current, the Borrower can provide future payments. If this is the case, then the Lender may cure the foreclosure and add the costs to the balance of the loan with a Notice of Additional Advance on the existing note. HOME funds may not be used for this purpose.

If the Lender determines, based on information on the reinstatement amount and status of Borrower, that bringing the loan current will not preserve the loan, then staff must determine if it is cost effective to protect their position by paying off the senior lienholder in total and restructure the debt such that the unit is made affordable to the Borrower. If the Lender does not have sufficient funds to pay the senior lienholder in full, then they may choose to cure the senior lienholder and foreclose on the property themselves. As long as there is sufficient value in the property, the Lender can afford to pay for the foreclosure process and pay off the senior lienholder and retain some or all of their investment.

If the Lender decides to reinstate, the senior lienholder will accept the amount to reinstate the loan up until five (5) days prior to the set "foreclosure sale date." This "foreclosure sale date" usually occurs about four (4) to six (6) months from the date of recording of the "Notice of Default." If the Lender fails to reinstate the senior lienholder before five (5) days prior to the foreclosure sale date, the senior lienholder would then require a full pay off of the balance, plus costs, to cancel foreclosure. If the Lender determines the reinstatement and maintenance of the property not to be cost effective and allows the senior lienholder to complete foreclosure, the Lender's lien may be eliminated due to insufficient sales proceeds.

8. Lender as Senior Lienholder
When the Lender is first position as a senior lienholder, active collection efforts will begin on any loan that is 31 or more days in arrears. Attempts will be made to assist the homeowner in bringing and keeping the loan current. These attempts will be conveyed in an increasingly urgent manner until loan payments have reached 90 days in arrears, at which time the Lender may consider foreclosure. Lender’s staff will consider the following factors before initiating foreclosure:
1) Can the loan be cured and can the rates and terms be adjusted to allow for affordable payments such that foreclosure is not necessary?
2) Can the Borrower refinance with a private lender and pay off the Lender? Name of State RecipientCity of Tulare Homebuyer Program Guidelines Page 36 3) Can the Borrower sell the property and pay off the Lender? 4) Does the balance warrant foreclosure? (If the balance is under $5,000, the expense to foreclose may not be worth pursuing.)
5) Will the sales price of home "as is" cover the principal balance owing, necessary advances, (maintain fire insurance, maintain or bring current delinquent property taxes, monthly yard maintenance, periodic inspections of property to prevent vandalism, etc.) foreclosure, and marketing costs?
If the balance is substantial and all of the above factors have been considered, the Lender may opt to initiate foreclosure. The Borrower must receive, by certified mail, a thirty-day notification of foreclosure initiation. This notification must include the exact amount of funds to be remitted to the Lender to prevent foreclosure (such as, funds to bring a delinquent BMIR current or pay off a DPL).

At the end of thirty days, the Lender should contact a reputable foreclosure service or local title company to prepare and record foreclosure documents and make all necessary notifications to the owner and junior lienholders. The service will advise the Lender of all required documentation to initiate foreclosure (Note and Deed of Trust usually) and funds required from the owner to cancel foreclosure proceedings. The service will keep the Lender informed of the progress of the foreclosure proceedings.

When the process is completed, and the property has "reverted to the beneficiary" at the foreclosure sale, the Lender could sell the home themselves under a homebuyer program or use it for an affordable rental property managed by a local housing authority or use it for transitional housing facility or other eligible use. The Lender could contract with a local real estate broker to list and sell the home and use those funds for program income eligible uses.

9. Process Demands and Payoffs:

Requests for demands and payoffs will be processed within the timeframe allowed by law. Sponsor or its designated Loan Servicing Agent is proficient in performing the related calculations. Reconveyance and lien releases would be prepared for processing by a qualified Title Company.

Name of State RecipientCity of Tulare Homebuyer Program Guidelines Page 37

ATTACHMENT E

SELLERS LEAD-BASED PAINT DISCLOSURE
Disclosure of Information on Lead-Based Paint and/or Lead-Based Paint Hazards Lead Warning Statement
Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that such property may present exposure to lead from lead-based paint that may place young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memory.

Lead poisoning also poses a particular risk to pregnant women. The seller of any interest in residential real property is required to provide the buyer with any information on lead-based paint hazards from risk assessments or inspections in the seller’s possession and notify the buyer of any known lead-based paint hazards. A risk assessment or inspection for possible lead-based paint hazards is recommended prior to purchase.

Seller’s Disclosure
(a) Presence of lead-based paint and/or lead-based paint hazards (check (i) or (ii) below):
(i) ____ Known lead-based paint and/or lead-based paint hazards are present in the housing (explain). ________________________________________________________ (ii)____ Seller has no knowledge of lead-based paint and/or lead-based paint hazards in the housing. (b) Records and reports available to the seller (check (i) or (ii) below):
(i) ____ Seller has provided the purchaser with all available records and reports pertaining to Lead-based paint and/or lead-based paint hazards in the housing (list documents below). ————————————————————————————————————————
(ii) ____Seller has no reports or records pertaining to lead-based paint and/or lead-based paint hazards in the housing.

Purchaser’s Acknowledgment (initial)
(c)____Purchaser has received copies of all information listed above. (d)____Purchaser has received the pamphlet Protect Your Family from Lead in Your Home. (e)____Purchaser has (check (i) or (ii) below):
(i) _____ received a 10-day opportunity (or mutually agreed upon period) to conduct a risk assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards; or (ii) _____waived the opportunity to conduct a risk assessment or inspection for the presence of Lead-based paint and/or lead-based paint hazards (NOT PERMISSIBLE FOR HOME AND CDBG).

Agent’s Acknowledgment (initial)
(f)____ Agent has informed the seller of the seller’s obligations under 42 U.S.C. 4852d and is aware of his/her responsibility to ensure compliance.

Certification of Accuracy
The following parties have reviewed the information above and certify, to the best of their knowledge, that the information they have provided is true and accurate.
—————————— —————————— ————————— —————————
Seller Date Seller Date
—————————— —————————— ————————— —————————
Purchaser Date Purchaser Date
—————————— —————————— ————————— —————————
Agent Date Agent Date
Name of State RecipientCity of Tulare Homebuyer Program Guidelines Page 38

ATTACHMENT F
Disclosure to Seller with Voluntary, Arm's Length Purchase Offer

DECLARATION
This is to inform you that would like to purchase the property, located at , if a satisfactory agreement can be reached. We are prepared to pay $____________ for a clear title to the property under conditions described in the attached proposed contract of sale.

Because Federal funds may be used in the purchase, however, we are required to disclose to you the following information:

1. The sale is voluntary. If you do not wish to sell, the buyer, ___________________, thru the agency, _____________ will not acquire your property. The buyer does not have the power of eminent domain to acquire your property by condemnation (i.e. eminent domain) and the agency/Sponsor ________________________________ will not use the power of eminent domain to acquire the property.

2. The estimated fair market value of the property is $__________ and was estimated by _______________________________________, to be finally determined by a professional appraiser prior to close of escrow.

Since the purchase would be a voluntary, arms length, transaction you would not be eligible for relocation payments or other relocation assistance under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA), or any other law or regulation. Also, as indicated in the contract of sale, this offer is made on the condition that no tenant will be permitted to occupy the property before the sale is completed.

Again, please understand that if you do not wish to sell your property, we will take no further action to acquire it. If you are willing to sell the property under the conditions described in the attached contract of sale, please sign the contract and return it to us at:
_______________________________________________. If you have any questions about this matter, please contact __________________________at ______________________.

Sincerely,
____________________________________
Title
_________________________________ _____________________ Buyer Date
_________________________________ _____________________ Buyer Date
Form continues on next page with Seller’s Acknowledgment Name of State RecipientCity of Tulare Homebuyer Program Guidelines Page 39 Disclosure to Seller with Voluntary, Arm's Length Purchase Offer (Page 2) Acknowledgement
As the Seller I/we understand that the will inspect the property for health and safety deficiencies. I/we also understand that public funds may be involved in this transaction and, as such, if the property was built before 1978, a lead-based paint disclosure must be signed by both the buyer and seller, and that a Visual Assessment will be conducted to determine the presence of deteriorated paint.

As the Seller, I/we understand that under the City’s? County’s? program, the property must be currently owner-occupied, vacant for three months at the time of submission of purchase offer, new (never occupied), or renter purchasing the unit. I/we hereby certify that the property is:

Vacant at least 3 months; Owner-occupied; New; or Being Purchased by Occupant I/we hereby certify that I have read and understand this “Declaration” and a copy of said Notice was given to me prior to the offer to purchase. If received after presentation of the purchase offer, I/We choose to withdraw or not to withdraw, from the Purchase Agreement.
__________________________________ _______________________ Seller Date
__________________________________ _______________________ Seller Date
Name of State RecipientCity of Tulare Homebuyer Program Guidelines Page 40

ATTACHMENT G

NAME OF STATE RECIPIENTCITY OF TULARE

INSTRUCTIONS TO HOMEBUYER

1. Persons interested in purchasing a home should contact the Program Operator’s Homebuyer Counseling and Education (HCE) Department at 559-802-1672 1600 to enroll in education classes, and if needed or required by the Program, also enroll in an individual counseling session. Upon completion of eight (8) hours of homebuyer education, the HCE Department will issue certificates of completion to the participants.

2. Participant should contact the Program Operator’s First-Time Homebuyer Loan Processor at 559-802-1649 to verify funding availability. The participant’s name is added to Sponsor’s interest list if there is no funding available, or will be moved directly into the workload.

3. Participant will select a Mortgage Company (primary lender) of his or her choice to determine financing eligibility. Upon successful prequalification with a primary lender, primary lender will submit a complete loan application package to Program Operator for review. This package must be submitted along with a completed Submission Form and Lender Cover Letter, provided by the Program Operator via the Program Operator’s website.

Items to be included are proof of income, credit history, and household size.

4. During the financing and Program eligibility review by Program Operator, household size, income, and Sponsor loan amount are determined. Prior to issuance of the prequalification letter to the family, the following must occur:
a. Application package must be reviewed and signed by Program Operator b. Application package must be reviewed and signed by Sponsor Upon completion by all parties, Program Operator will issue a prequalification letter to the participant and primary lender on behalf of the Sponsor. Program Operator will contact or meet with qualified applicant to provide information relative to Program requirements and the lending process. In addition, Program Operator will issue a condition list to both parties requesting additional income and asset documentation, including verification of employment and all income sources.

5. Participant works with Licensed Real Estate broker to find a property. Properties are subject to the following requirements:
a. Properties must meet the modest housing standards
b. Properties must be located within the Sponsor’s eligible area (Program Operator will verify)
c. Properties must meet maximum sales price limits, as applicable d. Properties must be owner-occupied or vacant for at least three (3) months Upon approval of the individual properties by the Sponsor, applicant will submit an offer and, once accepted, forward copies to Program Operator for review.

Name of State RecipientCity of Tulare Homebuyer Program Guidelines Page 41

6. Applicant will work with primary lender to provide Program Operator all terms on the conditions list. The items include, but are not limited to:
a. Income documentation (paystubs, tax returns, child support, etc.) b. Income documentation (paystubs, tax returns, child support, etc.) c. Asset documents (bank statements, 401K, etc.)
d. Property information (appraisal with photos, preliminary title report, termite report and clearance, etc.)
e. Real Estate Sales Contract (contingent upon receiving Program loan approval)
f. Residential loan application and credit report, paystubs, tax returns and W-2’s, and all verifications of employment and rent g. Disclosure statement

7. Program Operator, upon receipt of appraisal, will order a home inspection to be completed by the Program Operator, a certified housing inspector, or a Sponsor representative. Home inspections will document health & safety and code compliance as well as conduct LeadBased Paint Inspections. Seller must correct all deficiencies prior to the close of escrow.

8. Upon receipt of all conditions, Program Operator will prepare participant file for final loan approval with Sponsor. The primary lender should request the date of loan approval one week prior to the date of anticipated loan signing. At loan approval, Program Operator will present the application to Sponsor for review. Following loan approval, Program Operator will give loan documents to Sponsor for signatures. Loan documents are then forwarded to escrow company to coordinate loan signing.

9. Signed documents are returned to Program Operator for review. Upon review and confirmation of all conditions of final funding, Program Operator will wire funds to escrow.

10. Once loan is funded and recorded, escrow company provides a copy of all documents to Program Operator. Program Operator then closes out the loan file.

Name of State RecipientCity of Tulare Homebuyer Program Guidelines Page 42

ATTACHMENT H

LEAD-BASED PAINT

Visual Assessment Date: Report Date:

Check if no deteriorated paint found 
Attachment A: Summary where deteriorated paint was found.

Section 3: Notice of Presumption. Fill out Sections 1, 3, 5, and 6. Provide to occupant w/in 15 days of presumption.

Date of Presumption Notice:

Lead-based paint is presumed to be present  and/or Lead-based paint hazards are presumed to be present  Attachment B: Summary of Presumption:

Section 4: Notice of Lead-Based Paint Hazard Reduction Activity. Fill out Sections 1, 4, 5, and 6. Provide to occupant w/in 15 days of after work completed.

Date of Hazard Reduction Notice:

Initial Hazard Reduction Notice? Yes  No  Start & Completion Dates:

If “No”, dates of previous Hazard Reduction Activity Notices:

Attachment C: Activity locations and types.

Attachment D: Location of building components with lead-based paint remaining in the rooms, spaces or areas where activities were conducted.

Section 6: Contact Information Organization:

Contact Name: Contact Signature:

Date: Address: Phone:

Name of State RecipientCity of Tulare Homebuyer Program Guidelines Page 43

ATTACHMENT I
Homebuyer Program Lead Compliance Document Checklist
The following documents should be in each Homebuyer unit file to document compliance with the lead requirements:

Document Name Purpose

Lead Safe Housing Rule Screening Sheet Documents
exemptions
Physical inspection form (HQS or equivalent) Documents visual assessment results
Seller Certification Seller certifies that
paint was stabilized
by qualified workers
and that safe work
practices were
followed during paint
stabilization
Clearance Report and Clearance Review Worksheet Documents that unit passed clearance
Disclosure Form Documents that
buyer received
disclosure and
pamphlet.

Lead Hazard Reduction Notice Documents that
buyer received
required lead hazard
reduction notification.

This was taken from the HUD Website at:
http://portal.hud.gov/hudportal/documents/huddoc?id=20264_leadcompliance.doc Name of State RecipientCity of Tulare Homebuyer Program Guidelines Page 44

ATTACHMENT J

ACQUISITION WITH REHABILITATION CONSTRUCTION CONTRACT
Home Improvement Construction Contract
This Home Improvement Construction Contract is entered into this day of , 20___, between the following parties: (Owner(s) Name):
and (Contractor’s Name and Address):
(Notice of Cancellation, see paragraph 28, may be sent to Contractor at the above address).

The parties agree as follows:

1. Work to be Performed: Contractor agrees to provide a Schedule of Work, in accordance with the Work Write-up (Attachment 1) and furnish all supervision, technical personnel, labor, materials, tools and equipment necessary to complete the work described in the work write-up attached hereto at the real property commonly described as:
. Contractor will be responsible for all construction means, methods, techniques, sequences and procedures and for the coordination of all portions of the work under the Contract.

All materials shall be new, unless otherwise specified, and of good quality. Owner has a right to require the Contractor to have a performance and payment bond; the expense of the bond may be borne by the Owner.

2. Contract Price: Owner agrees to pay Contractor the sum of $________________ for the work to be performed.

3. Completion Time:
a. Approximate Start Date: The Contractor agrees to file a complete permit application within ten (10) days after receipt of written Notice to Proceed from the Owner. Owner and Contractor agree that the Start Date of construction shall be the date the permits are issued by the Name of State RecipientCity of Tulare. In no event shall the Contractor commence work or place any materials on the site thereof prior to receipt of Notice to Proceed from the Owner. b. Approximate Completion Date: Contractor shall prosecute the work diligently and continuously to completion. The work shall be completed within days after the Start Date, subject to such delays as are permissible under paragraph 7 herein below.

4. Payment:
a. Price will be paid to Contractor in installments based on completion of work tasks and individual item prices on the Work Write-up attached, and any Change Orders. b. Contractor shall submit all required payment forms to Owner for approval of payment. Prior to authorization of payment, the Contractor shall provide lien releases for claims by subcontractors, laborers, and material suppliers involved in the work and/or represented by Contractor's invoices.

Owner may also request written guarantees and warranties. c. After approval by Owner, Contractor shall submit payment request forms to name of Program OperatorSelf-Help Enterprises, hereinafter referred to as “XXXPROGRAM OPERATOR.” XXXPROGRAM OPERATOR shall then make payment to the Contractor. XXXPROGRAM OPERATOR may, at its option, inspect the work to ensure that it has been satisfactorily completed in accordance with the Contract requirements. Should XXXPROGRAM OPERATOR determine that work has not been performed in accordance with the Contract, XXXPROGRAM OPERATOR may, in its sole discretion, withhold or reduce payment in accordance with the terms of the agreement between Owner and XXXPROGRAM OPERATOR.

Name of State RecipientCity of Tulare Homebuyer Program Guidelines Page 45 d. At the time the work is completed, the Contractor shall submit the final pay request along with the recorded Notice of Completion, final building inspection report, insulation certificate, any warranties and guarantees, conditional lien releases, and Section 3 report (for contracts over $100,000).
e. An amount equal to ten percent of the total Contract price, including any Change Orders, will be withheld by Owner and shall be paid to Contractor 35 days after notice of completion has been recorded, final inspection by the jurisdiction’s building official and approval by Owner, provided that Contractor is not in default under this Contract. Final payment will be subject to withholding any amounts due to Owner for actual costs due to unexcused delays. f. The payment of any progress payment shall not constitute acceptance of defective work or improper material, nor is it a waiver of the warranties or any other remedies to which the Owner may be entitled under the terms of this Contract

5. Relationship of the Parties to XXXPROGRAM OPERATOR: Work to be performed under this Contract is financed by funds from the Name of State RecipientCity of Tulare and administered by XXXPROGRAM OPERATOR. Owner is solely responsible for monitoring all work performed under this Contract and enforcing the terms of this Contract. XXXPROGRAM OPERATOR shall inspect all work for the purposes of monitoring loan disbursements in accordance with terms of this Contract and enforcing the terms of the loan agreement. Inspections performed by XXXPROGRAM OPERATOR are solely for the protection of the lender and solely for the purpose of assuring that the construction is progressing reasonably and that the lender's collateral interest is adequately protected.

Owner acknowledges that XXXPROGRAM OPERATOR's inspections are not for the purpose of assuring Contractor's compliance with applicable building codes. XXXPROGRAM OPERATOR shall not be liable under any circumstances for its failure to discover or require correction by Contractor of work that fails to comply with applicable building codes or for its failure to discover or require correction of any dangerous condition or defective work by contractor or by any subcontractor.

XXXPROGRAM OPERATOR shall not, under any circumstances, have any liability either to the Owner or to the Contractor for any disbursement or refusal to approve of any disbursement requested by Contractor.

6. Failure to Commence Work: Failure by the Contractor without lawful excuse to substantially commence work within 20 days from the date specified in the Notice to Proceed is a violation of the Contractors' License Law.

7. Excusable Delays: Contractor shall not be charged with delay in the completion of the work due to:
any acts of Owner which cause delay; general strikes; acts of God or the public enemy; unavailability of materials, or casualty beyond Contractor's control, provided, however, that Contractor promptly (within 14 days) notifies Owner, in writing, of the cause of the delay. If the facts show the delays to be excusable under the terms of the Contract, the time for completion shall be extended for a period equal to the amount of time due to such delay.

8. Unexcused Delays: The parties agree that the Owner would incur additional expenses as a result of Contractor's unexcused delays in the completion of the work. “Additional expenses” shall include but not be limited to housing and storage costs incurred by the owner due to the inability to fully occupy the property.

9. Provisions for the Owner: While this Contract is in force, Owner shall permit Contractor the use of existing utilities including light, heat, power, and water, without charge, in order to carry out and complete the work. Owner may continue to occupy the premises during the rehabilitation but shall cooperate with Contractor to facilitate the performance of the work including the abandonment of limited areas as may be essential to the conduct of the work.

Name of State RecipientCity of Tulare Homebuyer Program Guidelines Page 46

10. Compliance with the Law: By signing this contract, the Contractor certifies that it is licensed and in good standing in California, and not listed on the Federal Consolidated List of Debarred, Suspended and Ineligible Contractors. Contractors are regulated by the Contractors' State License Board which has jurisdiction to investigate complaints against contractors if a complaint regarding a patent act or omission is filed within four years of the date of the alleged violation. A complaint regarding a latent act or omission pertaining to structural defects must be filed within 10 years of the date of the alleged violation. Any questions concerning a contractor may be referred to the Registrar, Contractors' State License Board, P.O. Box 26000, Sacramento, California 95826. All work shall be completed in strict compliance with the laws, ordinances, rules, regulations and Codes of the State, County, and local governments, whether such applicable laws, ordinances, rules, regulations and codes are mentioned in this Contract or not. Contractor shall obtain, pay for, and provide permits and licenses, as required to complete all work outlined under this Contract.

Where applicable, Contractor agrees to the following provisions:
a) Standard Contract Language, All Contracts and Subcontracts, pertaining to civil rights, HCD, age discrimination, rehabilitation acts assurance, etc. (see Attachment 2). b) By the statement below, Contractor hereby furnishes Owner with Contractor Notice in compliance with California Business and Professions Code Section 7159:

INFORMATION ABOUT THE CONTRACTORS’ STATE LICENSE BOARD
(CSLB)
CSLB is the state consumer protection agency that licenses and regulates construction contractors.

Contact CSLB for information about the licensed contractor you are considering including information about disclosable complaints, disciplinary actions and civil judgments that are reported to CSLB.

Use only licensed contractors. If you file a complaint against a licensed contractor within the legal deadline (usually four years), CSLB has authority to investigate the complaint. If you use an unlicensed contractor, CSLB may not be able to help you resolve your complaint. Your only remedy may be in civil court, and you may be liable for damages arising out of any injuries to the unlicensed contractor or the unlicensed contractor’s employees.

For more information:

Visit CSLB’s Web site at www.cslb.ca.gov
Call CSLB at 800-321-CSLB (2752)
Write CSLB at P. O. Box 26000, Sacramento, CA 95826
c) The contractor hereby agrees to abide by the requirements of Executive Order 11246 and all implementing regulations of the Department of Labor.

11. Notice to Owner (see Attachment 3).

12. Required Insurance: Contractor shall obtain and keep in effect during the life of this contract, insurance in the following minimum amounts:

Worker's Compensation and Employer's Liability Insurance meeting the statutory requirements of the State of California.

Comprehensive General Liability and Property Damage Insurance with Combined Single Limits of at least $1,000,000. This insurance shall be on an occurrence basis and shall protect the Contractor against liability arising from: Contractor's operations, operations by subcontractors, products, Name of State RecipientCity of Tulare Homebuyer Program Guidelines Page 47 completed operations or professional liability where applicable and contractual liability assumed under the indemnity provisions above insured. Any Excavation, Collapse and Underground exclusions must be deleted when applicable to operations performed by the Contractor or his subcontractors.

An original certificate of such insurance shall be filed with XXXPROGRAM OPERATOR. Said certificate shall evidence coverage through the life of this Contract.

13. Safety to Public and Property: Contractor shall be responsible for initiating, maintaining, and supervising all safety precautions and programs in connection with the work. In such, Contractor shall provide reasonable protection to prevent damage, injury, and loss to: all employees on the work, all work and materials and equipment to be incorporated therein and other property at the site or adjacent thereto, including trees, shrubs, lawns, pavements, structures, and utilities not designated for removal or replacement under the terms of this Contract.

14. Hold Harmless: With the exception that this Section shall in no event be construed to require indemnification by Contractor to a greater extent than permitted under the public policy of the State of California, Contractor shall indemnify and save harmless Owner and XXXPROGRAM OPERATOR, including their officers, agents, employees, affiliates, parents and subsidiaries, and each of them, of and from any and all claims, demands, causes of action, damages, costs, expenses, actual attorneys fees, losses or liability, in law or in equity, of every kind and nature whatsoever ("Claims") arising out of or in connection with Contractor's operations to be performed under this Agreement for, but not limited to:
(a) Personal injury, including, but not limited to, bodily injury, emotional injury, sickness or disease, or death to persons, including, but not limited to any employees or agents of Owner, XXXPROGRAM OPERATOR, or any other subcontractor and/or damage to property of anyone (including loss of use thereof), caused or alleged to be caused in whole or in part by any negligent act or omission of Contractor or anyone directly or indirectly employed by Contractor or anyone for whose act Contractor may be liable regardless of whether such injury or damage is caused by a party indemnified hereunder. (b) Penalties imposed on account of the violation of any law, order, citation, rule, regulation, standard, ordinance, or statute, caused by the action or inaction of Contractor. (c) Infringement of any patent rights which may be brought against XXXPROGRAM OPERATOR or Owner arising out of Contractor's work.
(d) Claims and liens for labor performed or materials used or furnished to be used on the project, including all incidental or consequential damages resulting to XXXPROGRAM OPERATOR or Owner from such claims or liens.
(e) Contractor's failure to fulfill the covenants set forth in collective bargaining agreement, wage order or any other agreement or regulation concerning labor relations. (f) Failure of Contractor to provide Casualty Insurance. (g) Any violation or infraction by Contractor of any law, order, citation, rule, regulation, standard, ordinance or statute in any way relating to the occupational health or safety of employees, including, but not limited to, the use of XXXPROGRAM OPERATOR's or other's equipment, hoist, elevators, or scaffolds. The indemnification provisions of (a) through (g) above shall extend to Claims occurring after this Agreement is terminated as well as while it is in force. Such indemnity provisions apply regardless of any active and/or passive negligent act or omission of Owner or XXXPROGRAM OPERATOR or their agents or employees. Contractor, however, shall not be obligated under this Agreement to indemnify Owner or XXXPROGRAM OPERATOR for Claims arising from the sole negligence or willful misconduct of Owner or XXXPROGRAM OPERATOR or their agents, employees or independent contractors who are directly responsible to Owner or XXXPROGRAM OPERATOR, or for defects in design furnished by such persons.
(h) Contractor shall:

Name of State RecipientCity of Tulare Homebuyer Program Guidelines Page 48 i. At Contractor's own costs, expense and risk, defend any claims that may be brought or instituted by third persons, including but not limited to, governmental agencies or employees of Contractor, against XXXPROGRAM OPERATOR or Owner or their agents or employees or any of them;
ii. Pay and satisfy any judgment or decree that may be rendered against XXXPROGRAM OPERATOR or Owner or their agents or employees, or by any of them, arising out of any such Claim; and/or
iii. Reimburse XXXPROGRAM OPERATOR or Owner or their agents or employees for any and all legal expense incurred by any of them in connection herewith or in enforcing the indemnity granted in this Section.
(i) All work covered by this Agreement done at the site or in preparing or delivering materials or equipment, or any or all of them, to the site shall be at the risk of Contractor exclusively until the completed work is accepted by XXXPROGRAM OPERATOR. (j) The indemnities set forth in this Section shall not be limited by any insurance requirements set forth elsewhere within this agreement.

15. Assignment: Contractor shall not assign or transfer any right or obligation under this Contract without first obtaining the written consent of Owner. Any attempted assignment by Contractor shall be void.

16. Changes in Work to be Performed: No changes shall be made in the work, Contract price or Contract time for completion of work, except by written change order. The change order shall bear the signatures of the parties to this Contract and approved (by signature) as to propriety with funding requirements by XXXPROGRAM OPERATOR. No claim for an adjustment of Contract work, price or time will be valid unless so ordered. Payment for change orders that bear additional cost shall be made in accordance with paragraph 4, above.

17. Guarantees and Material Warranties: All labor, materials and installation shall be guaranteed for a period of one year from the date of final acceptance by Owner, when subjected to normal use and care, and provided Owner has complied, in full, with the terms and payments and other conditions of this Contract. Upon written notice from Owner, Contractor shall repair or remedy any defect in materials and workmanship within the one-year period specified. Contractor shall furnish Owner with and assign to Owner all manufacturers' and suppliers' written guarantees and warranties covering materials and equipment furnished under this Contract.

18. Surplus Materials and Clean-up of Premises: All materials and equipment removed and not reused as a condition of this Contract shall remain or become the property of Owner, unless otherwise so stated in writing. All surplus materials as well as all rubbish and construction debris resulting from construction activities shall be removed promptly from the job site by Contractor. Upon completion of the work, Contractor shall leave the building and premises in a "broom-clean" condition.

19. Divisibility: It is intended that each paragraph of this agreement shall be viewed as separate and divisible, and in the event that any paragraph shall be held to be invalid, the remaining paragraphs shall continue to be in full force and effect.

20. Materials Restriction: Lead base paint hazards specified in the work write-up shall be mitigated in accordance with Federal Lead Based Paint regulations listed at 24 CFR 35. All new paint used must be a non-lead based paint.

21. Arbitration:
a. Should any controversy arise out of or related to this Contract or the breach thereof, that falls within the provisions of 7085 et seq. of the California Business and Professions Code, other than a controversy based upon your failure to comply with a notice to return to the project under paragraph 23, the parties shall agree to submit the issue to Contractors State License Board Name of State RecipientCity of Tulare Homebuyer Program Guidelines Page 49 (CSLB) arbitration. The decision of the arbitrator is final and binding on both parties. CSLB will pay for the hearing, the arbitrator, and the services of one Board-appointed expert witness per complaint. The parties are responsible for their own attorney fees, if any, and additional expert witnesses, if any.
b. Any controversy arising out of or relating to this Contract, or the breach thereof, that does not qualify for CSLB arbitration, or the parties do not agree to CSLB arbitration, shall 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 shall have the final authority to order work performed, to order the payment from one party to another, and to order whom shall bear the costs of arbitration. Costs to initiate arbitration shall be paid by the party seeking arbitration. Notwithstanding, the party prevailing in any arbitration proceeding and in any litigation arising out of or relating to this contract shall be entitled to recover from the other all attorneys' fees and costs of arbitration.

22. Mechanics Liens: Contractor shall pay promptly all valid bills and charges for materials, labor or otherwise, in connection with or arising out of the rehabilitation of said property and will hold Owner free and harmless against all of them, filed against the property or any part thereof, and from and against all expense and liability in connection therewith, including but not limited to, court costs and attorneys' fees resulting or arising there from. Should any liens or claim of liens be filed for record against the property, or should Owner receive notice of any unpaid bill or charge in connection with the Contract, Contractor shall forthwith pay and discharge the same and cause the same to be released of record. Contractor authorizes XXXPROGRAM OPERATOR to issue joint checks as part of any disbursement otherwise payable to Contractor whenever XXXPROGRAM OPERATOR, in its sole discretion, determines that payment in this fashion is necessary in order to protect the interests of the Lender or the Owner. (See also, Notice to Owner, Attachment 3).

23. Termination of Contract: Should Contractor commit any of the acts specified in this paragraph, the Owner may, give 72 hours' notice in writing thereof to Contractor, to commence and continue thereafter to diligently prosecute the correction thereof, and if contractor fails to do so, then without prejudice to any other rights or remedies given Owner by law or by this contract, Owner may terminate the services of Contractor under this contract; take possession of said project and the premises on which it is located; take possession of all materials, located on such premises; and, complete said project by whatever method Owner may deem expedient. Contractor shall be deemed to have committed an act specified in this paragraph if contractor shall:
a. refuse or fail to supply enough properly skilled workers or proper materials to complete said project in the time specified in this contract and in the approved time schedule. b. fail to make prompt payment to subcontractors, laborers, or material men for labor performed on or materials furnished to said project;
c. fail to comply with the time schedule for completion of the project; The preceding notwithstanding, the following actions by the Contractor shall be deemed to be material breaches of the contract which are not subject to cure. Should Contractor commit any of the acts specified in this paragraph, the Owner may, by giving 72 hours’ notice in writing thereof to Contractor, without prejudice to any other rights or remedies given Owner by law or by this contract, terminate the services of Contractor under this contract; take possession of said project and the premises on which it is located; take possession of all materials, located on such premises; and complete said project by whatever method owner may deem expedient:
d. Commence with any proceedings of bankruptcy;
e. make a general assignment for the benefit of contractors; f. persist in disregarding any law or ordinance relating to said project or the completion thereof;
g. suffer the revocation or suspension of its contractor’s license.

Name of State RecipientCity of Tulare Homebuyer Program Guidelines Page 50

24. Rights on Termination by Owner: Should Owner terminate the service of Contractor under this contract and complete said project pursuant to Paragraph 10 of this contract, the Contractor shall not be entitled to receive any further payment under this contract until said project is fully completed.

On completion of said project by Owner, if the unpaid balance of the contract price exceeds the expenses incurred by Owner in completing said project, including any compensation paid by Owner for managerial, administrative, or supervisory services in completing said project, such excess shall be paid by Owner to Contractor. If the expense incurred by Owner in completion of said project exceeds the unpaid balance of the purchase price, Contractor shall pay such excess to Owner with thirty days following written demand by Owner.

25. Force Majeure: Neither Owner nor Contractor shall be deemed to be in default if performance of the improvements required by this contract is delayed or becomes impossible because of any act of God, war, earthquake, fire, civil commotion, epidemic, act of government, its agencies or officers, court order, or any other legitimate cause beyond the control of the party and not caused by the negligent, unreasonable or intentional acts of the party.

26. Availability of Funds: In the event the loan or grant of funds upon which this Contract is contingent is not approved, this Contract shall be considered null and void, and shall not create any liability to either Owner or Contractor.

27. Contract Nullity: This entire Contract shall be considered null and void if either of the following shall occur:
a. Owner is not approved for funding to finance the Contract Price; b. Owner chooses not to proceed with the project before construction begins.

28. Three-Day Right to Cancel: “You, the Owner, have the right to cancel this contract within three business days. You may cancel by e-mailing, mailing, faxing, or delivering a written notice to the Contractor at the Contractor’s place of business by midnight of the third business day after you received a signed and dated copy of the contract that includes this notice. Include your name, your address, and the date you received the signed copy of this contract including this notice.

If you cancel, the Contractor must return any moneys paid within 10 days of receiving the notice of cancellation. For your part, you must make available to the Contractor at your residence, in substantially as good condition as you received it, any goods delivered to you under this contract or sale. Or, you may, if you wish, comply with the Contractor’s instructions on how to return the goods at the Contractor’s expense and risk. If you do make the goods available to the Contractor, and the Contractor does not pick them up within 20 days of the date of your notice of cancellation, you make keep them without any further obligation. If you fail to make the goods available to the Contractor, or if you agree to return the goods to the Contractor and fail to do so, then you remain liable for performance of all obligations under this Contract.”
(continued on next page)
Name of State RecipientCity of Tulare Homebuyer Program Guidelines Page 51

29. “You, the Owner, are entitled to a completely filled-in copy of this Contract, signed by both you and the Contractor, before any work may be started.”

THE OWNER AND THE CONTRACTOR ACKNOWLEDGE THAT THEY HAVE READ,

UNDERSTAND AND AGREE TO ALL PROVISIONS OF THIS CONTRACT INCLUDING ALL ADDITIONAL CONTRACT DOCUMENTS.

OWNER(S):

CONTRACTOR:

By:

Business Name:

Title:

Address:

Telephone:

License Number:

Tax ID or Soc. Sec. #
Attachments:
1 – Work Write-up
2 – Standard Contract Language
3 – Notice to Owner
Name of State RecipientCity of Tulare Homebuyer Program Guidelines Page 52 STANDARD CONTRACT LANGUAGE:

ALL CONTRACTS AND SUBCONTRACTS

1. The Civil Rights, HCD, and Age Discrimination Acts Assurances:

During the performance of this Agreement, the Grantee assures that no otherwise qualified person shall be excluded from participation or employment, denied program benefits, or be subjected to discrimination based on race, color, national origin, sex, age, or handicap, under any program or activity funded by this contract, as required by Title VI of the Civil Rights Act of 1964, Title I of the Housing and Community Development Act of 1974, as amended, and the Age Discrimination Act of 1975, and all implementing regulations.

2. Rehabilitation Act of 1973 and the “504 Coordinator” The Grantee further agrees to implement the Rehabilitation Act of 1973, as amended, and its regulations, 24 CFR Part 8, including, but not limited to, for Grantees with 15 or more permanent full or part time employees, the local designation of a specific person charged with local enforcement of this Act, as the “504 Coordinator”.

3. The Training. Employment and Contracting Opportunities for Business and Lower Income Persons Assurance of Compliance:
a) The grant activity to be performed under this Agreement is on a project assisted under a program providing direct federal financial assistance from the Department of Housing and Urban Development and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C 1701u. Recipients, contractors and subcontractors shall direct their efforts to provide, to the greatest extent feasible, training and employment opportunities generated from the expenditure of Section 3 covered assistance to Section 3 residents in the order of priority provided in 24 CFR 135.34(a)(2). b) The parties to this Agreement will comply with the provisions of said Section 3 and the regulations issued pursuant thereto by the Secretary of Housing and Urban Development set forth in 24 CFR Part 135, and all applicable rules and orders of the Department issued thereunder prior to the execution of this contract. The parties to this contract certify and agree that they are under no contractual or other disability which would prevent them from complying with these requirements.
c) The Grantee will include these Section 3 clauses in every contract and subcontract for Work in connection with the grant activity and will, at the direction of the State, take appropriate action pursuant to the contract or subcontract upon a finding that the Grantee or any contractor or subcontractor is in violation of regulations issued by the Secretary of Housing and Urban Development, 24 CFR Part 135 and, will not let any contract unless the Grantee or contractor or subcontractor has first provided it with a preliminary statement of ability to comply with the requirements of these regulations.
d) Compliance with the provisions of Section 3, the regulations set forth in 24 CFR Part 135, and all applicable rules and orders of the Department issued thereunder prior to the execution of the Agreement shall be a condition of the federal financial assistance provided to the project, binding upon the Grantee, its successors and assigns. Failure to fulfill these requirements shall subject the Grantee, its contractors and subcontractors, its successors and assigns to those sanctions specified by the grant or contract through which federal assistance is provided, and to such sanctions as are specified by 24 CFR Part 135.

4. Assurance of Compliance with Requirements Placed on Construction Contracts of $10,000 or more
Name of State RecipientCity of Tulare Homebuyer Program Guidelines Page 53 The Grantee hereby agrees to place in every contract and subcontract for construction exceeding $10,000 the Notice of Requirement for Affirmative Action to ensure Equal Employment Opportunity (Executive Order 11246), the Standard Equal Employment Opportunity, and the Construction Contract Specifications. The Grantee furthermore agrees to insert the appropriate Goals and Timetables issued by the U.S. Department of Labor in such contracts and subcontracts.

5. State Nondiscrimination Clause:
a) During the performance of this contract, contractor and its subcontractors shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex, race, color, ancestry, religious creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition (cancer), age (over 40) marital status, and denial of family care leave. Contractors and subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free of such discrimination and harassment. Contractors and subcontractors shall comply with the provisions of the Housing Act (Government Code, Section 12990 (a-f) et seq.) and the applicable regulations promulgated thereunder (California Code of Regulations, Title 2, Section 7258 et seq.) The applicable regulations of the Fair Employment and Housing Commission implementing Government Regulations, are incorporated into this contract by reference and made a part hereof as if set forth in full. Contractor and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement.
b) Contractor shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the contract.

6. Labor Standards –Federal Labor Standards Provisions
The Grantee shall cause or require to be inserted in full, in all such contracts subject to such regulations, provisions meeting the requirements of:

Davis-Bacon Act (40 USC 276a-276a-5) requires that workers receive no less than the prevailing wages being paid for similar work in their locality. Prevailing wages are computed by the Department of Labor and are issued in the form of Federal wage decisions for each classification of work. The law applies to most construction, alteration, or repair contracts over $2,000.

Copeland “Anti-Kickback” Act (47 USC 276(c) requires that workers be paid at least once a week without any deductions or rebates except permissible deductions.

Contract Work Hours and Safety Standards Act – CWHSSA (40USC 327-333) requires that workers receive “overtime” compensation at a rate of 1-1/2 times their regular hourly wage after they have worked 40 hours in one week.

Title 29, Code of Federal Regulations, Subtitle A, Parts 1, 3 and 5 are the regulations and procedures issued by the Secretary of Labor for the administration and enforcement of the Davis-Bacon Act, as amended.

HCD Version 9/2014

NOTICE TO OWNER
"Under the California Mechanics' Lien Law, any contractor, subcontractor, laborer, supplier, or other person or entity who helps to improve your property, but is not paid for his or her work or supplies, has a right to place a lien on your home, land, or property where the work was performed and to sue you in court to obtain payment.

This means that after a court hearing, your home, land, and property could be sold by a court officer and the proceeds of the sale used to satisfy what you owe. This can happen even if you have paid your contractor in full if the contractor's subcontractors, laborers, or suppliers remain unpaid.

To preserve their rights to file a claim or lien against your property, certain claimants such as subcontractors or material suppliers are each required to provide you with a document called a "Preliminary Notice." Contractors and laborers who contract with owners directly do not have to provide such notice since you are aware of their existence as an owner. A preliminary notice is not a lien against your property. Its purpose is to notify you of persons or entities that may have a right to file a lien against your property if they are not paid. In order to perfect their lien rights, a contractor, subcontractor, supplier, or laborer must file a mechanics' lien with the county recorder which then becomes a recorded lien against your property. Generally, the maximum time allowed for filing a mechanics' lien against your property is 90 days after substantial completion of your project.

TO INSURE EXTRA PROTECTION FOR YOURSELF AND YOUR PROPERTY, YOU MAY WISH TO TAKE ONE OR MORE OF THE FOLLOWING STEPS:
(1) Require that your contractor supply you with a payment and performance bond (not a license bond), which provides that the bonding company will either complete the project or pay damages up to the amount of the bond. This payment and performance bond as well as a copy of the construction contract should be filed with the county recorder for your further protection. The payment and performance bond will usually cost from 1 to 5 percent of the contract amount depending on the contractor's bonding ability. If a contractor cannot obtain such bonding, it may indicate his or her financial incapacity. (2) Require that payments be made directly to subcontractors and material suppliers through a joint control.

Funding services may be available, for a fee, in your area which will establish voucher or other means of payment to your contractor. These services may also provide you with lien waivers and other forms of protection. Any joint control agreement should include the addendum approved by the registrar. (3) Issue joint checks for payment, made out to both your contractor and subcontractors or material suppliers involved in the project. The joint checks should be made payable to the persons or entities which send preliminary notices to you. Those persons or entities have indicated that they may have lien rights on your property; therefore, you need to protect yourself. This will help to insure that all person due are actually paid. (4) Upon making payment on any completed phase of the project, and before making any further payments, require your contractor to provide you with unconditional "Waiver and Release" forms signed by each material supplier, subcontractor, and laborer involved in that portion of the work for which payment was made. The statutory lien releases are set forth in exact language in Section 3262 of the Civil Code. Most stationery stores will sell the "Waiver and Release" forms if your contractor does not have them. The material suppliers, subcontractors, and laborers that you obtain releases from are those persons or entities who have filed preliminary notices with you. If you are not certain of the material suppliers, subcontractors, and laborers working on your project, you may obtain a list from your contractor. On projects involving improvements to a single-family residence or a duplex owned by the individuals, the person signing these releases lose the right to file a mechanics' lien claim against your property. In other types of construction, this protection may still be important, but may not be as complete.

Name of State RecipientCity of Tulare Homebuyer Program Guidelines Page 55 To protect yourself under this option, you must be certain that all material suppliers, subcontractors, and laborers have signed the "Waiver and Release" form. If a mechanics' lien has been filed against your property, it can only be voluntarily released by a recorded "Release of Mechanics' Lien" signed by the person or entity that filed the mechanics' lien against your property unless the lawsuit to enforce the lien was not timely filed.

You should not make any final payments until any and all such liens are removed. You should consult an attorney if a lien is filed against your property."
Read and acknowledged:

Signature Dated
Signature Dated
Name of State RecipientCity of Tulare Homebuyer Program Guidelines Page 56 ATTACHMENT K

NAME OF STATE RECIPIENTCITY OF TULARE OR PROGRAM OPERATOR CONSTRUCTION PAYMENT REQUEST #
Date
Participant Project Job #
Project Address
Total Contract Amount $ Payment Amount $
Contractor: Construction Supervisor:

Items Completed:

I request payment for work in progress on the above property. I certify that the work itemized above has been completed as of this date.

Contractor's Signature Date
NOTE: Ten percent (10%) of the total contract amount (including all change orders) will be retained by Name of Program OperatorSelf-Help Enterprises until 35 days after Notice of Completion is recorded.

The items listed above have been completed satisfactorily.

Please release payment to Contractor as requested (or amended). OWNER'S SIGNATURE DATE APPROVED FOR PAYMENT:

NAME OF PROGRAM OPERATORSELF-HELP ENTERPRISES
DATE  Mail  Pick-up
NOTES:

Distribution: WHITE:(Name of Program OperatorSelf-Help Enterprises YELLOW: Owner PINK: Contractor GOLDENROD:

Supervisor
Name of State RecipientCity of Tulare Homebuyer Program Guidelines Page 57 CITY OF TULARE

AGENDA ITEM TRANSMITTAL SHEET
Submitting Department: Engineering Services / Engineering For Council Meeting of: March 15, 2022
Documents Attached: ☐Ordinance ☐Resolution ☒Other ☐None AGENDA ITEM:

Approve the final map and subdivision improvement agreement for Phases 2 & 3 of The Greens at Oak Creek Subdivision for recordation, and accept all easements and dedications offered to the City.

IS PUBLIC HEARING REQUIRED: ☐Yes ☒No
BACKGROUND/EXPLANATION:

Planning Commission Resolution No. 5248 adopted on August 28, 2017 approved the tentative subdivision map for The Greens at Oak Creek Subdivision located 1,700 feet north of Tulare Avenue, east of Mooney Boulevard. The 88-lot single family residential subdivision comprises approximately 19.5 acres to be constructed in 3 phases. Phase 1 of The Greens at Oak Creek was accepted April 9, 2020.

A copy of the Planning Commission Resolution No. 5248 and the final map are attached.

STAFF RECOMMENDATION:

Approve the final map and subdivision improvement agreement for Phases 2 & 3 of The Greens at Oak Creek Subdivision for recordation, and accept all easements and dedications offered to the City.

CITY ATTORNEY REVIEW/COMMENTS: ☒Yes ☐N/A
IS ADDITIONAL (NON-BUDGETED) FUNDING REQUIRED: ☐Yes ☐No ☒N/A FUNDING SOURCE/ACCOUNT NUMBER:

N/A
Submitted by: Michael Miller Title: City Engineer
Date: March 7, 2022 City Manager Approval: ____________ AGENDA ITEM: Consent 7

CITY OF TULARE

AGENDA ITEM TRANSMITTAL SHEET
Submitting Department: Engineering Services / Project Management For Council Meeting of: March 15, 2022
Documents Attached: ☐Ordinance ☐Resolution ☒Other ☐None AGENDA ITEM:

Award and authorize the City Manager to sign a contract with NV5 for geotechnical and materials testing services related to City Project EN0092, Pratt Street/Mefford-Choice Tracts Improvement Project in the amount of $153,357; and Authorize the City Manager or designee to approve contract change orders in an amount not to exceed 10% ($15,335.70) of the contract amount.

IS PUBLIC HEARING REQUIRED: Yes No
BACKGROUND/EXPLANATION:

This project is a street and utility improvement project on the following roadways: Pratt Street between Bardsley Avenue and Inyo Avenue (SR137); Walter Street between Bardsley Avenue and Elm Avenue; Oliver Street between Bardsley Avenue and Elm Avenue; Cleveland Street between Bardsley Avenue and Elm Avenue; Victoria Street between Bardsley Avenue and Elm Avenue; Elm Avenue between Howard Street and D Street; C Street between Elm Avenue and Sonora Avenue, and the Cleveland/Victoria and Victoria/Pratt alleys between Bardsley Avenue and Elm Avenue. The project will reconstruct the street section and will include ADA compliance improvements to intersection curb returns and alley/sidewalk intersections that fall within project limits. Additionally, it will address necessary water, sewer and storm drain improvements within those limits. The need for the project was identified through the City’s Pavement Management System and the review of the condition of the City’s utility infrastructure. This project was included and approved as a part of the City’s 2019-2024 transportation and utility CIP program budget.

In addition to the actual construction contract, it will be necessary to supplement City staff with various consultant services from the City’s list of on-call consultants. During the course of constructing street, water, sewer, storm drain, and concrete improvements associated with this project, it will be necessary to perform materials testing to ensure compliance with City standards. Such testing is comprised of various material property verifications and compaction testing. Material testing services, including laboratory testing, is outside the capabilities of the City.

AGENDA ITEM: Consent 8
On December 7, 2021, the City Council approved various contracts required for the construction of the Pratt Street/Mefford-Choice Tracts Improvement Project, including one with BSK Associates (BSK) of Fresno, CA for geotechnical and materials testing services. BSK is currently performing work on several other City projects. Due to some recent staffing changes in their key personnel positions, they have struggled to adequately perform work as required by the City on those projects. This has raised concerns regarding their ability to complete work on the Pratt Street/Mefford-Choice Tracts Improvements project. For this reason, the City has reached out to NV5, another firm on the City’s on-call list of consultants, for a proposal for this work on the project. NV5 has demonstrated in their proposal that they have the skills, expertise and resources available to meet the City’s needs and timeframe to complete the work on this project. NV5 has reviewed the scope of this project and has proposed to perform the necessary services on a time and materials basis, not to exceed $153,357, in accordance with the provisions of their on-call contract. This is slightly more than the previously proposed and approved amount with BSK in the amount of $139,067.00. However, since the work will be performed on a time and materials basis and the City will only be charged for the actual work performed, actual project costs should not significantly differ between the two firms.

There is not anticipated to be an impact to the project budget, and should not be a need for additional funding at this time.

STAFF RECOMMENDATION:

CITY ATTORNEY REVIEW/COMMENTS: Yes N/A
IS ADDITIONAL (NON-BUDGETED) FUNDING REQUIRED: Yes No N/A FUNDING SOURCE/ACCOUNT NUMBER:

EN0092-050-0612 – Materials Testing
Submitted by: Nick Bartsch Title: Sr. Project Manager
Date: March 4, 2022 City Manager Approval: __________

CITY OF TULARE

AGENDA ITEM TRANSMITTAL SHEET
Submitting Department: Engineering Services / Project Management For Council Meeting of: March 15, 2022
Documents Attached: ☐Ordinance ☐Resolution ☒Other ☐None

AGENDA ITEM:

Authorize the City Manager to complete and execute the documents necessary to accept the dedication of property located as a portion of APN: 169-360-041 for the use of public right-ofway for Project EN0088 – Prosperity Avenue & West Street Improvements Project, subject only to minor conforming and clarifying changes acceptable to the City Attorney and City Manager.

IS PUBLIC HEARING REQUIRED: Yes No
BACKGROUND/EXPLANATION:

A traffic study was performed for a proposed development on the southeast corner of Prosperity Avenue and West Street, which showed that warrants were met for a new traffic signal at this intersection. The City Council subsequently provided staff with direction to review the condition of this intersection, and to prioritize construction of improvements at this location.

The resulting project, EN0088 – Prosperity Avenue & West Street Improvements Project, will construct the intersection to its ultimate width, install ADA compliant dual curb ramps at each corner, and install master-planned utility improvements within the project limits. Street improvements will include sufficient transitions from the full-width widening at the curb returns back down to the existing pavement width. An eight-phase traffic signal with emergency preemption, video detection for both vehicle and bicycle traffic, and associated appurtenances will be included in the project.

STAFF RECOMMENDATION:

AGENDA ITEM: Consent 9
CITY ATTORNEY REVIEW/COMMENTS: Yes N/A
IS ADDITIONAL (NON-BUDGETED) FUNDING REQUIRED: Yes No N/A FUNDING SOURCE/ACCOUNT NUMBER:

EN0088-030-0230
021 – Measure R – Local
022 – Gas Tax (HUTA)
010 – Water Bonds
615 – Sewer Wastewater CIP
Submitted by: Nick Bartsch Title: Sr. Project Manager
Date: March 4, 2022 City Manager Approval:

OFFICE OF THE CITY CLERK

CERTIFICATE OF ACCEPTANCE
THIS IS TO CERTIFY that the interest in real property conveyed by the Temporary Construction Easement Deed dated February 22, 2022, from Darshan Singh and Jagroop Kaur, husband and wife joint tenants, to the City of Tulare, Municipal Corporation of the State of California, was duly accepted by the City Council of the City of Tulare on March 15, 2022, and by the same order of the City Council of the City of Tulare, the City Manager was instructed to execute this certificate of acceptance to be recorded with the Temporary Construction Easement Deed.

CITY OF TULARE
By:

Marc Mondell, City Manager
ATTEST:

Chief Deputy City Clerk

OFFICE OF THE CITY CLERK

CERTIFICATE OF ACCEPTANCE
THIS IS TO CERTIFY that the interest in real property conveyed by the Grant Deed dated February 22, 2022, from Darshan Singh and Jagroop Kaur, husband and wife joint tenants, to the City of Tulare, Municipal Corporation of the State of California, was duly accepted by the City Council of the City of Tulare on March 15, 2022, and by the same order of the City Council of the City of Tulare, the City Manager was instructed to execute this certificate of acceptance to be recorded with the Grant of Deed.

CITY OF TULARE
By:

Marc Mondell, City Manager
ATTEST:

Chief Deputy City Clerk

L:\Projects\2019\190384\ACAD\Legals\190384-TCE-Legal 041

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Tulare City CouncilMarch 15, 2022

Tulare City Council
March 15, 2022