Turlock City Council
August 26, 2025

TMC 3-9 CFD 3 DRAFT

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Turlock this 12th day of August, 2025, by the following vote:

AYES:

NOES:

NOT PARTICIPATING:

ABSENT:

Signed and approved this 26th day of August, 2025.

SIGNED:

__________________________
AMY BUBLAK, Mayor
ATTEST:

___________________________
Nichole Fiez, City Clerk,
City of Turlock, County of Stanislaus,
State of California APPROVED AS TO FORM:

__________________________
George A. Petrulakis, City Attorney

City Council Staff Report
August 26, 2025

From: Isaac Moreno, Finance Director

Prepared by: Isaac Moreno, Finance Director

Agendized by: Susan E. Borrego, Interim City Manager

1. ACTION RECOMMENDED:

Resolution: Superseding and replacing Resolution No. 2023-054 and adopting updated cost recovery percentages, schedule of fees and charges for City services, pursuant to Turlock Municipal Code Section 3-3-301 et seq.

2. DISCUSSION OF ISSUE:

This action contains a recommendation for augmentation of fees charged by the City for various programs and services, to include Parks, Recreation and Public Works, Fire, and Municipal Services. The set costs for individual duties, services, and programs have been adopted and recorded in the City’s Fee and Service Charge Revenue/Cost Comparison System, pursuant to Turlock Municipal Code Section 3-3-301 et seq.

The recommended changes are based on the following:

• Labor increase due to Memorandum of Understanding (MOU) negotiations • Material cost increases
• New services

Currently, staff are working with ClearSource Financial Consulting to bring forward a new User Fee Study. This project is expected to conclude in January 2026.

3. BASIS FOR RECOMMENDATION:

A. In accordance with Turlock Municipal Code Section 3-3-302, the City Manager shall cause a review of the cost of services and regulatory activities and of the fees enacted under this chapter to be conducted annually and shall provide the City Council with recommended changes in the percentage of cost to be recovered or recommendations as to new or increased fees.

4. FISCAL IMPACT / BUDGET AMENDMENT:

The specific fiscal impact of any individual change will be dependent on the frequency with which this service is provided in Fiscal Year 2025-26. These recommendations are based on 1) the cost of providing the service and 2) the City Council’s direction regarding cost recovery through the fee(s) charged.

Agenda Staff Report
8/26/25

5. STAFF RECOMMENDATION:

Staff recommend approval pursuant to Turlock Municipal Code Section 3-3-301 et seq.

6. CITY MANAGER’S COMMENTS:

Recommend Approval.

7. ENVIRONMENTAL DETERMINATION:

This action is not subject to the provisions of the California Environmental Quality Act (CEQA) in accordance with Section 15378(b)(5) of the CEQA guidelines. This action consists of “organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment” and therefore is not considered a project.

8. ALTERNATIVES:

A. Council could decide not to accept staff’s recommendations for fee changes.

9. ATTACHMENTS:

A. Draft resolution
B. Attachment A-User Fee Tables and forms

BEFORE THE CITY COUNCIL OF THE CITY OF TURLOCK

IN THE MATTER OF SUPERSEDING } RESOLUTION NO. 2025-
AND REPLACING RESOLUTION }
NO. 2023-054 AND ADOPTING UPDATED }
COST RECOVERY PERCENTAGES, }
SCHEDULE OF FEES AND }
CHARGES FOR CITY SERVICES, TO }
PURSUANT TO TURLOCK }
MUNICIPAL CODE SECTION }
3-3-301 ET SEQ. }
}

WHEREAS, the City of Turlock has conducted an analysis of its services, the costs of providing those services, the beneficiaries of those services, and the revenues produced by those paying fees and charges for those services; and

WHEREAS, the City wishes to comply with both the letter and the spirit of Article XIIIB of the California Constitution and limit the growth of taxes; and

WHEREAS, pursuant to California State law, the specific fees to be charged for services must be adopted by the City Council after providing notice and holding a public hearing; and

WHEREAS, the augmentations in fees recommended meet the statutory exemptions set in Article XIII C of the California Constitution (as introduced through Proposition 26 – 2010).

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Turlock does hereby adopt:

1. Fee Schedule for Each Process – The following schedule of fees and charges for general City services (Attachment A) is hereby directed to be computed by and applied by the various City departments, and to be collected for the herein listed special services when provided by the City or its designated contractors.

2. Separate Fee for Each Process – All fees set by the Resolution are for each identified process; additional fees shall be required for each additional process or service that is requested or required. Where fees are indicated on a per-unit-of- measurement basis, the fee is for each identified unit or portion thereof within the indicated ranges of such units. Where additional fees need to be charged and collected for completed staff work, or where a refund of excess deposited monies is due and where such charge or refund is ten dollars ($10.00) or less, a charge or refund need not be made.

3. Fee Schedule – The fees listed on Attachment A supersede all prior fees and shall

be charged and collected for the designated services.

4. Interpretation – This Resolution may be interpreted by several City department heads in consultation with the City Manager and should there be a conflict between two fees then the lower in dollar amount of the two shall be applied.

5. Effective Date – This Resolution shall go into full force and effect immediately.

6. Invalidation of Fee(s) – In the event that a court of competent jurisdiction invalidates the fee(s) set forth herein, the superseded fee resolution shall be automatically reinstated.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Turlock this 26th day of August, 2025, by the following vote:

AYES:

NOES:

NOT PARTICIPATING:

ABSENT:

ATTEST:

___________________________
Nichole Fiez, City Clerk,
City of Turlock, County of Stanislaus,
State of California

Cost Recovery
Reference
Number
AD-13600

ADMINISTRATIVE SERVICES
Remove - Notary
services are
provided
exclusively for
City documents
Remove -
Documents are
available online.

Printing requests
will be subject to
standard per-
page fee.
100% Document Certification
Service $10 per certification
AD-13700 100% Agenda/Minute Mailing
Service
City Council
Subscribers:
$36.00/year
Planning Commission
Subscribers:
$20.00/year

ATTACHMENT A
Recovery Percentage SERVICES PROVIDED FEE Request

Cost Recovery
Reference
Number
B-20000

ATTACHMENT A
BUILDING and INSPECTION SERVICES
Recovery Percentage SERVICES PROVIDED Request
*Other Building fees are adopted by separate resolution.

FEE
100% Credit Card Use Fee 2% of permit fee N/A

Cost
Recovery
Reference
Number
CW-02800

ATTACHMENT A
100% Copies of Public
Records
Requests in excess of
10 pages will be
mailed or available for
pick up at City offices.

Out-of-State for 1-5
pages $2.50
Out-of-State for 6-10
pages $3.50
In-State for 1-5 pages
$1.50
In-State for 6-10 pages
$2.50
20%2 Appeal Processing
If the request is to be
faxed the cost is as
follows:

Plus postage costs if
request is to be mailed
Each 36” blueprint $4.00
per sheet
CW-03100
8½ x 11 page $.00 (n/c)
8½ x 14 page $.00 (n/c)
Pages 1 – 15 :

N/A
FPPC documents $.10
per page
(over 15 pages)
8½ x 14 page $.15 per
page
Pages over 15:
8½ x 11 page $.15 per
page
Each 24” blueprint $3.00
per sheet
Color copies: $1.50 per
page
Each 42” blueprint $6.00
per sheet
Increase
recommended -
current fee does not
cover service costs
Recovery Percentage SERVICES PROVIDED FEE Request

CITYWIDE SERVICES
$125.00

Cost
Recovery
Reference
Number

ATTACHMENT A
Recovery Percentage SERVICES PROVIDED FEE Request

CITYWIDE SERVICES
CW-03101
CW-03102 P.H.R.6
DVR copy of elected
and/or appointed official
meetings (when
available) $15/DVD
See E-17900 for
charges related to
copies of Engineering
maps.
100% Special Service (All
Departments) N/A
N/A100% Copies Requested
through a Subpoena
P.H.R.6 for retrieval,
duplication, and
processing, plus per-
page cost for copies

Cost
Recovery
Reference
Number
E-00208
E-18100
E-20000
E-20001
Sewer $32.00
Black & White Maps
Zoning Map $6.00
Color Maps
Assessment District $32.00
General Plan $32.00
P.H.R. plus consultant fee
N/A
N/A
N/A
Council Approval $2,238.00
Staff Approval $222.00
Storm Drain $32.00
Water $32.00
Zoning $32.00
School Districts $23.00
Charges for any other maps
to be determined based on
the nature of the request.

ATTACHMENT A
*Other Engineering fees included in the Development Services-Engineering Division User Fee Study are adopted by separate resolution.

ENGINEERING SERVICES
100%
An automation/record
retention service charge shall
be collected on all
construction and land use
development permits to be
dedicated solely to the costs
of permit/inspection service
automation, permit tracking
system, and permit data
collection, storage and
retrieval systems
7% of the applicable permit
fee
Zoning Map $5.00
Color Maps
Assessment District $28.00
General Plan $28.00
N/A
Recovery
Percentage SERVICES PROVIDED FEE Request
ENGINEERING SERVICES and INSPECTION SERVICES
Sewer $28.00
Storm Drain $28.00
Water $28.00
Zoning $28.00
100%
Municipal Services Tree,
Friability & Damage
Inspection
Black & White Maps
$115.00
E-18600 100% Out of Boundary Service
Agreement
E-17900 100% Copies of Engineering Maps
School Districts $20.00
100% CFD No. 3 Annexation N/A
100% Credit Card Use Fee 2% of permit fee
Charges for any other maps
to be determined based on
the nature of the request.

Cost
Recovery
Reference
Number
FN-10700
FN-10901
FN-12300
FN-13300
FN-13500
FN-16800
N/A
100% Refuse/Garbage Collection
(Franchise Fee)
Rates Established Through Franchise
Agreement Approved by City Council
N/A
Utility Delinquency Fee
(Water, sewer, and garbage)
Residential/Commercial: $25.00 per
delinquency
Industrial: 10% of the delinquent
monthly billing
New Utility Account
Processing
N/A
100%
$25.00 (first returned check)
$35.00 (second returned check)
$5.00
100%
Recovery
Percentage SERVICES PROVIDED FEE Request

FINANCE SERVICES

ATTACHMENT A
N/A
N/A
100%
Utility Service Security
Deposit :
(required if customer cannot
provide a letter of credit from
another utilty with one-year good
credit history OR does not have
one-year good credit history with
Turlock within past five years).

TMC 6-5-302 “The deposit will be
equal to the charges for services likely
to be incurred during a period of three
(3) months or two (2) billing periods,
whichever is greater.”
100% New/Moved Business
License Application Review
Application:$50.00
Initial License Fee: $30.00
State Disability Access Fee: $4.00
(SB 1186 §4465)
Any changes to business license
application: No Charge
Duplicate License:$20.00
Regular Occupancy
Inspection Application:$50.00
Application:$50.00
Initial License Fee:
$60.00
State Disability Access
Fee: $4.00
(SB 1186 §4465)
Any changes to
business license
application: No Charge
Duplicate
License:$20.00
Regular Occupancy
Inspection
Application:$50.00
100% Returned Check Processing
(NSF)

FN-16900
FN-16901
$50.00 plus 25% of
outstanding charges due
and payable at set-up
time of payment plan
100% Utility Bill Payment Plan
$20.00 plus 50% of outstanding
charges due and payable at set-up
time of payment plan
100% Credit Card Chargeback Fee N/A $15 per transaction

Cost
Recovery
Reference
Number
F-04701
F-06800
F-07100
F-07200
F-07300
F-07400
F-07500
F-07501

FIRE SERVICES
No charge for the first three false
alarms within a 12 month period.
$150 for each response after
three within a 12 month period.

N/A
100% Fire Report Copying See Fee CW-03100 N/A
No charge for initial inspection
and first re-inspection. Third and
subsequent re-inspections are
$150.00 each.

N/A
100% Vehicle Repair Permit $50.00
100% Fire False Alarm
Response
No charge for the first three false
alarms within one calendar year.
$150 for each response after three
within one calendar year.
100% Burn Regulation
Enforcement $50 per permit

ATTACHMENT A
Recovery
PercentageSERVICES PROVIDED FEE Request
$100.00 per hour initial inspection
and first re-inspection. Third and
subsequent re-inspections are
$100.00 per hour each.

N/A
100% Developer Fire Hydrant
Flow Information
$35.00 for information that can be
answered over the phone or via the
internet (e-mail).
$135.00 for information that will
require some sort of field or general
investigation.

For special requests the charge will
be based on the actual time involved
charged at the Productive Hourly
Rate.

Fire Code Related
Permit Review &
Inspection
Based on the actual and estimated
time involved at a rate of $100.00 per
hour.

No Charge for Initial Inspection and
First Reinspection. Second and
Subsequent Reinspections are
$135.00 each.

Fire Code Compliance
Inspection
$35.00 for information that can be
answered over the phone or via
the internet (e-mail).
$135.00 for information that will
require field or general
investigation.

For special requests the charge
will be based on the actual time
involved charged at the
Productive hourly rate.
100%
Fire Code Enforcement
Inspection Engine
Company Inspection
(not state mandated)
100%

Cost
Recovery
Reference
Number

FIRE SERVICES

ATTACHMENT A
Recovery
PercentageSERVICES PROVIDED FEE Request
F-07600
F-07700
F-07800
F-07801
F-07900
F-07901
F-07902
F-08000
F-08100
$165.00 per riser plus $1.25 per head
If additional trips are required for
testing due to a phased project or a
site’s unreadiness - $165.00 per trip
100% Water/Flood Pumping
and Clean-up P.H.R.6
State Licensed Pre-
Inspection N/A
$100.00 per hour initial inspection
and first re-inspection. Third and
subsequent re-inspections are
$100.00 per hour each. No
charge for public schools.

Current OES reimbursement rate
Charge at contractural rate per
hour. Current postal/fedex rate.
$35.00 administrative fee
Charge at contractural rate per
hour. Current postal/fedex rate.
$35.00 administrative fee
$100 per hour
N/A
100% Target Hazard
Inspection $100.00
Hazardous Material Permit
$50.00
Based on the actual time involved
at a rate of $100.00 per hour.
$50.00 per hydrant
100%
Fire Suppression
System Flow
Test/Inspection
100% Hazardous Material
Permit Review
Based on the actual time involved at
a rate of $100.00 per hour.
100%4 State-Mandated Fire
Inspection
$100.00 per hour
No charge for public schools.
100% Private Hydrant System
Testing $75.00
100% Fire Sprinkler Plan
Review Check
Initial Plan Check -
$125.00 per hour
If the plan requires outside
consultation -
$25.00 administrative processing fee
each time the plan is sent out.
100% Fire Alarm System Plan
Review/Test
$100.00 per hour
If the plan requires outside
consultation - $25.00 administrative
processing fee each time the plan is
sent out.

Cost
Recovery
Reference
Number

FIRE SERVICES

ATTACHMENT A
Recovery
PercentageSERVICES PROVIDED FEE Request
F-08200
F-08300
F-08401
F-08500
F-08600
F-08700
F-15400
F-16200
F-16300
100%
100%
$100.00 per hour for plan check and
inspection plus
$35.00 for Fire (Tank) Permit
100% Fixed Medical Gas
System Inspection
$100.00 per hour
If the plan requires outside
consultation - $25.00 administrative
processing fee each time the plan is
sent out.
100%
Hood and Duct System
Plan Check Review and
Inspection - Suppression
$125.00 per hour for
plan check and inspection
Charge at contractural rate per
hour. Current postal/fedex rate.
$35.00 administrative fee
$100.00 per hour
Vehicle Spray Paint
Booth Inspection
$100.00 per hour
If the plan requires outside
consultation - $25.00 administrative
processing fee each time the plan is
sent out.

Multi-family Residential
Fire Sprinkler System
Inspection
$125.00 per hour
If the plan requires outside
consultation - $25.00 administrative
processing fee each time the plan is
sent out.

Current OES reimbursement rate
N/A
Charge at contractural rate per
hour. Current postal/fedex rate.
$35.00 administrative fee
Charge at contractural rate per
hour. Current postal/fedex rate.
$35.00 administrative fee
100% Fireworks Stand Permit
Review $200.00
$100.00 per hour for inspection.
$50.00 for permit
$100.00 per hour for inspection.
$50.00 for permit
100% Flammable Liquid Tank
Plan Review $100.00 per hour
100% Tank Removal or Repair
Inspection
Current OES reimbursement rate
Remove
$100.00 per hour for plan check and
inspection plus
$35.00 for Fire (Tank) Permit
100% Special Fire Service P.H.R.6
F-08400 100% Tank Installation
Inspection
100% Spilled Load Clean-up P.H.R.6

Cost
Recovery
Reference
Number

FIRE SERVICES

ATTACHMENT A
Recovery
PercentageSERVICES PROVIDED FEE Request
F-16400
F-17200
F-18100
F-18300
F-18900
F-19400
F-19500
100%
An automation/record
retention service charge
shall be collected on all
fire permits (except
fireworks booth,
fireworks storage) to be
dedicated solely to the
costs of
permit/inspection service
automation, permit
tracking system, and
permit data collection,
storage, printing, and
retrieval systems.
$50.00 per permit
100% Fire Building Plan Check
(for fire requirements) $100.00 per hour
100%
100% Fire Occupancy
Inspection $100.00 per hour
100% Apparatus Charge Out
Rate $140.00 per hour
100%
100%
Credit Card Use Fee 2% of permit fee N/A
$100.00 per hour initial inspection
and first re-inspection. Third and
subsequent re-inspections are
$100.00 per hour each.

Current OES reimbursement rate
General Fire Permits
(not otherwise listed
above)
$50.00 $50 per permit
Tent/Canopy Permit
Application
Permit: $35.00
Inspection Fee: $100.00
Permit: $50.00
Inspection Fee: $100.00
Current OES reimbursement rateDrug/DUI/Hazmat/Incident
Reponse N/A
N/A
N/A

Cost
Recovery
Reference
Number
H-10000 100% Special Housing Service P.H.R.6 N/A

ATTACHMENT A
Recovery Percentage SERVICES PROVIDED FEE Request
Housing Department

Cost
Recovery
Reference
Number
M-10700
M-10800
M-10900
M-11000
M-11100
M-11101
M-11200
M-11300
M-11350
M-11400
M-11450
M-11500
M-11600
100% Water Service
Set by Ordinance and codified
in Turlock Municipal Code
Chapter 6-5.
100% Administrative Processing P.H.R.6
100% Utility Location Identification No Charge
100%
Water Service
Reinstatement/Reconnection
– New Service and
Delinquent Accounts
P.H.R.6(minimum of .25 hrs)
plus materials
100%
Water Service
Reinstatement/Reconnection
– Repair/Emergency
Requests
P.H.R.6(minimum of .25 hrs)
plus materials
100% Water Service Installation P.H.R.6 plus materials
100% Back-Flow Device Testing $100.00 per device, per test 100% Water Meter Testing P.H.R.6
Water Sample Testing/Lab
Analysis
$95.00 for first test; additional
concurrent tests at P.H.R.6 plus
materials
100% Back-Flow Test Preparation /
Admin $100.00
100% Water Pressure TestingP.H.R.6 (minimum of .25 hours) 100% Well Abandonment
Processing
Property owner required to
abandon well to Local and
State standards
100% Chlorination / Flushing P.H.R.6 (minimum of .25 hours) 100%
Recovery
PercentageSERVICES PROVIDED FEE Request

MUNICIPAL SERVICES
N/A

ATTACHMENT A
$105.00 per device, per test
$105.00
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

Cost
Recovery
Reference
Number
Recovery
PercentageSERVICES PROVIDED FEE Request

MUNICIPAL SERVICES

ATTACHMENT A
M-11650
M-11700
M-11800
M-11900
M-12000
M-12100
M-12200
M-12400
M-12500
M-12600
M-12700
N/A
100%
Street Light Maintenance:

Labor
Materials
Electricity
P.H.R.6 N/A
100%
Rates Established through a
Contract Agreement Approved
by City Council
Median and Parkway
Maintenance
P.H.R.6 Materials per Actual
Cost
100% Street Tree Maintenance
100% Out of Boundary Service
Agreement P.H.R. plus materials
100% Sewer Dye Testing P.H.R.6 plus materials
100% Sewer Service
Set by ordinance and codified
in Turlock Municipal Code
Chapter 6-4
100% Sewer Installation
Set by ordinance and codified
in Turlock Municipal Code
Chapter 6-4
100% Sewer Blockage
Investigation
P.H.R6 (minimum of .25 hours)
plus materials
N/A
N/A
N/A
N/A
Utility Televising VerificationP.H.R.6 plus materials
N/A
100%
Wastewater
Monitoring/Surveillance/Insp
ection
Incorporated into M-11700
Industrial Rate Structure.

Additional
Monitoring/Survelliance/
Inspection will be charged at
P.H.R.6 plus Materials.
100% T.V. Inspection of
Development P.H.R.6 plus materials
100%
N/A
N/A
N/A
N/A

Cost
Recovery
Reference
Number
Recovery
PercentageSERVICES PROVIDED FEE Request

MUNICIPAL SERVICES

ATTACHMENT A
M-12800
M-12900
M-13100
M-13200
M-17300
M-17400
M-17401
M-17480
M-17490
M-17500
M-17501
M-17600
100% Water Main Hot Tap Fee
(New and Existing Main)P.H.R.6 plus materials N/A
N/A100% Special Traffic Marking
Service P.H.R.6
100% Alley Maintenance P.H.R.6
100% Storm Drainage Maintenance
Established by Separate
Resolution of the City Council
in Conjunction with Sewer
Rates
N/A
100% Water Tee
(New and Existing Main) P.H.R.6 plus materials
Water Meter Drop In only
(Meter and Endpoint only
and Meter box already in
place)
P.H.R.6 plus materials100%
100% Installation of Temporary
Double Check Device
N/A
N/A
N/A
N/A
100% Street Sweeping
Rates Established through a
Contract Agreement Approved
by City Council
P.H.R.6 plus materials
N/A
N/A100%
Removal of Temporary
Double Check Device (by
City Staff)
P.H.R.6 plus materials
100%
100% Water Tie-In
N/A
Reduced Pressure Backflow
Device Installation by City
staff
P.H.R.6 plus materials N/A
100%
P.H.R.6 plus materials
P.H.R.6 plus materials N/ADouble Check Installation by
City staff

Cost
Recovery
Reference
Number
Recovery
PercentageSERVICES PROVIDED FEE Request

MUNICIPAL SERVICES

ATTACHMENT A
M-18000
M-19500
M-19600
Fire Hydrant Meter (for off-
site construction fee)
A deposit of $5,200 will be
collected for the rental of a fire
hydrant meter with a backflow
device. The deposit shall be
refunded, less the amount for
water used, meter rental fee,
and administrative processing
fee, upon return of the meter in
good condition.

Standby Fee/Unforeseen
Task P.H.R.6
P.H.R.6 (minimum of .25 hours) 100%
N/A
N/A
N/A
100%
100%
100% BOD
100% TSS
100% pH
100% EC
Construction Plan Review
100% 1,2,3 TCP
100% Arsenic
100% Cadmium
100% Bacti (MPN-Colilert)
100% Ammonia
100% Oil & Grease (FOG)
N/A $40 Per Ananlysis
N/A $40 Per Ananlysis
N/A $20 Per Analysis
N/A $50 Per Analysis
100% Phosphorous
100% Lead
100% Mercury
100% COD
100% Alkalinity
N/A $42 Per Analysis
N/A $305 Per Analysis
N/A $179 Per Analysis
100% Zinc
100% Nitrate as N
100% Nickel
100% Silver
100% Copper
100% Nitrite as N
100% TKN
100% Chrome
N/A $36 Per Analysis
N/A $36 Per Analysis
N/A $36 Per Analysis
N/A $36 Per Analysis
N/A $36 Per Analysis
N/A $36 Per Analysis
N/A $36 Per Analysis
N/A $53.00
N/A $48.00
N/A $36 Per Analysis
N/A $36 Per Analysis
N/A $42 Per Analysis
N/A $32 Per Analysis
N/A $42 Per Analysis
N/A $42 Per Analysis
N/A $20 Per Analysis

Cost
Recovery
Reference
Number
Recovery
PercentageSERVICES PROVIDED FEE Request

MUNICIPAL SERVICES

ATTACHMENT A
100% Flow Meter Verification
100% Controller
100% pH Probe
100% EC Probe
100% Autosampler
100% Install/replace Monitoring
Station
100% MBAS
100% Sulfite
100% Install/replace Flow Meter
100% Sulfate
N/A $116 Per Analysis
N/A $58 Per Analysis
N/A $136 Per Month
N/A Time and Material
N/A $27 Per Analysis
N/A Time and Material
N/A $260 Per Test
N/A $33 Per Month
N/A $35 Per Month
$25 Per EventN/ASample Setup100%
N/A $35 Per Month

Cost
Recovery
Reference
Number
N-05601
N-06900
N-07000
N-18200 N/A
N/A
Issued in Office: $15.00
Issued in Field: $30.00
Revenue allocated 75%
to Recreation and 25%
to Neighborhood Services

NEIGHBORHOOD SERVICES
N/A
N/A100% Removal of Abated
Vehicles $165.00 per vehicle
100% Noise Permit $50
100% Lot Clearing Service P.H.R.6
100% Garage Sale Permit

ATTACHMENT A
Recovery Percentage SERVICES PROVIDED FEE Request

Cost
Recovery
Reference
Number
P-00700
P-00701
P-00800
P-00900
P-00901
P-00902
P-01000
P-01200 Development Agreement
Review7
P.H.R.6 applied to a deposit of
$15,125.00
100% Turlock Municipal Code Zoning
Ordinance Text Amendment7
P.H.R.6 applied to a deposit of
$8,915.00
100% Variance Application $3,104.00
100% Minor Administrative Approval
(MAA) – Site Plan Review
100%
General Plan Amendment/
Specific Plan/ Master Plan
Adoption or Amendment 7
P.H.R.6 applied to a deposit of
$13,836.00
100%
N/A
100% Prezone9
0-10 Acres* $6,380.00
11-20 Acres* $8,655.00
>20 Acres* $10,930.00
*excludes State Board of
Equalization and LAFCO Fees
N/A
100% Rezone7
N/A
N/A
N/A

ATTACHMENT A
*Fees include 20% Records Management Fee
N/A$963.00
100% Minor Administrative Approval
(MAA)
Large Family Day Care/
New Christmas Tree/Pumpkin
Lots*:
$425.00
Renewal Christmas
Tree/Pumpkin Lots*:
$200.00
*plus a $500 refundable cleaning
deposit
Sign Permit (except freestanding
signs):
1st Sign:
$120.00
Each additional sign:
$ 35.00
MAA Time Extension, Sign
Reface, and Temporary Sign
Permit:
$35.00
Large Family Day Care/
New Christmas Tree/Pumpkin
Lots*:
$425.00
Renewal Christmas
Tree/Pumpkin Lots*:
$200.00
*plus a $500 refundable cleaning
deposit
Sign Permit (except freestanding
signs):
1st Sign:
$120.00
Each additional sign:
$ 35.00
MAA Time Extension, Sign
Reface, and Temporary Sign
Permit:
$35.00
Recovery
Percenta
ge
SERVICES PROVIDED FEE Request

PLANNING SERVICES
P.H.R.6 applied to a deposit of:

Minor (<5 Acres) $8,300.00
Major (>5 Acres) $9,468.00
N/A

Cost
Recovery
Reference
Number

ATTACHMENT A
Recovery
Percenta
ge
SERVICES PROVIDED FEE Request

PLANNING SERVICES
P-01300
P-01500
P-01600
P-01601
P-01900
P-02000
P-02100
$1,775.00
100% Planned Development
Application7/
100% New Comprehensive Sign
Program
100% Application Continuance
Hearings $390.00
100% Appeal to Planning Commission $550.00
100%
Amendment to Comprehensive
Sign Program / Iconic Sign /
Historic Sign
Tentative/Vesting
Tentative Subdivision
Maps: $2,497.00
CUP Time
Schedules: $2,349.00
MDP Time
Schedules: $1,894.00
PD Development
Schedules: $3,259.00
100% Conditional Use Permit Review
(includes CUP amendments)
Minor: $4,338.00
Medium: $7,409.00
Major: $10,821.00
$2,493.00
N/A
N/A
100% Time Extension Review (no
change in project description)
N/A
N/A
N/A
N/A
P.H.R.6 applied to a deposit of:

Application Review:

Including Rezone Fee
Minor $10,944.00
Major $14,356
Amendment:

Minor $5,491.00
Major $7,197.00
Existing Development (change in
standard only)
$7,073.00
N/A

Cost
Recovery
Reference
Number

ATTACHMENT A
Recovery
Percenta
ge
SERVICES PROVIDED FEE Request

PLANNING SERVICES
P-02200
P-02300
P-02500
P-02501
P-02600
100% Street Name Changes after
Tentative Map Approval
0-10 Acres: $242.00
11-20 Acres: $325.00
21-50 Acres: $400.00
>50 Acres: $480.00
100% Tentative and Vesting Tentative
Subdivision Map Application10
0-10 Acres: $7,282.00
11-20 Acres: $10,126.00
21-50 Acres: $12,970.00
>50 Acres: $15,472.00
N/A
N/A
100% Minor Discretionary Permits
(General) N/A
Minor: $2,879.00
Medium: $5,268.00
Major: $8,111.00
Amendments: $1,985.00
Historical Site Contracts
$1,126.00
Minor Exceptions
$1,013.00
Outdoor Dining
$984.00
--if police clearance is required
for
alcohol sales,
add $110.00
Sign Program (includes
freestanding signs):

Minor: $770.00
Major: $1,775.00
No Circulation Required
(base fee)
$145.00
Add to base fee, if required:
-Circulation to City
$100.00
Departments/Outside
Agencies
-Circulation to Neighbors
$50.00
100% Minor Discretionary Permits
(Other) N/A
100% Temporary Use of Land Permit
(TULP) N/A

Cost
Recovery
Reference
Number

ATTACHMENT A
Recovery
Percenta
ge
SERVICES PROVIDED FEE Request

PLANNING SERVICES
P-02700
P-02900
P-03000
P-03100
P-03200
P-17100
100%
CEQA Review: Negative
Declaration / Mitigated Negative
Declaration / EIR8
(Recording and Department of
Fish and Game
Fees not included)
100%
Notice of Exemption
(customer request)
$228.00
Addenda to a Negative
$1,226.00
Declaration or Mitigated
Negative Declaration
Negative Declaration
$2,250.00
Mitigated Negative
4,525.00
Declaration
Mitigated Negative Declaration
with special studies:
6,231.00
EIR Contract
Management/Oversight:
17% of EIR cost
N/A
Home Occupation Permit
Review
$90.00
$115.00 if police approval
required
$2,431.00
100% Zoning Certificate $90.00
100%
Zoning Verification Letter
-Zoning Verification Only
-Property Research Letter
(response to a specific list of
questions)7
$90.00
P.H.R.6 applied to a deposit of
$100.00
100%
N/A
N/A
N/A
N/A
N/A
100% Out-of-Boundary Service
Agreement7 $2,328.00
General Plan Conformity Finding

Cost
Recovery
Reference
Number

ATTACHMENT A
Recovery
Percenta
ge
SERVICES PROVIDED FEE Request

PLANNING SERVICES
P-17800
P-18600
P-18700
P-18701
P-18702
P-18703
P-18704
P-18800
P-19100
P-19200
P-19300
P-19301
P-20000
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A$273.00
100% Mobile Food Vendor Initial Permit: $900.00
Annual Renewal: $90.00
100% Right of Way Abandonment $91.00
100% Williamson Act
Cancellation Fee (includes CEQA
Negative Declaration) $8,985.00
Notice of Nonrenewal:
$165.00
100% Parcel Map and Lot Line
Adjustment Review $182.00
Planning Review of Building
Permits for Single –Family
Homes:

Custom Home Plan Review
Master Plan Review
Lot Specific Plot Plan Review
for a
Master Plan Unit
P.H.R.6
P.H.R.6
$91.00 per residential unit
100%
100%
Planning Review of Building
Permits for Multi-Family /
Commercial / Industrial
P.H.R.6 plus $358.00 for
Landscape Review and Building
Inspection
100% Encroachment Permit Review $90.00
100% Final Parcel Map Check $136.50
100% Final TSM/VTSM Map Check
100% Credit Card Use Fee 2% of permit fee
100%
Shopping Cart
Containment/Retrieval
Ordinance
Plan Review: $155.00
100% Landscape review Fee $358.00
100% Improvement Plans Per Sheet $22.75

Cost
Recovery
Reference
Number
PD-03600
PD-03700
PD-03800
PD-03900
PD-04000
PD-04100
PD-04200
PD-04300
PD-04400
PD-04500
PD-04600
PD-04700
PD-04800

ATTACHMENT A
N/A
N/A
100%3 DUI Accident Cost
Recovery P.H.R.6 Not to exceed statutory limitation
$12.00
Collection of fee currently suspended
N/A
100%
Removal of
Abandoned
Vehicles
$70.00
100% Police Report
Copying See Fee CW-03100
N/A
100%
Wide/Overweight/
Overlong Load
Permit Review
N/A
100%
Vehicle Citation
Correction
Inspection
N/A
N/A100%
Courtesy Accident
Report
Investigation and
Compilation
P.H.R.6
Recovery
Percentage

SERVICES
PROVIDED FEE Request
100% Clearance Letter $25.00
100% Subpoena Service
This service is currently provided by the
Sheriff’s office. Turlock Police Services
does not provide this service.

POLICE SERVICES
N/A
N/A
N/A
N/A
N/A
N/A
100% General Code
Enforcement
To be determined by the Judicial Branch of
the Government
100% Vehicle Code
Enforcement
To be determined by the Judicial Branch of
the Government
100%
Bicycle
Registration
(limited by State
law)
$4.00
50% Special Traffic
Request
To be determined by the Judicial Branch of
the Government
Individual: $15.00
Plus P.H.R.6
To be established from time to time by
Ordinance or Resolution of the City Council100% Parking Violation Enforcement

Cost
Recovery
Reference
Number

ATTACHMENT A
Recovery
Percentage

SERVICES
PROVIDED FEE Request

POLICE SERVICES
PD-04900
PD-05000
PD-05100
PD-05200
PD-05300
PD-05400
PD-05500
N/A
N/A
100%
Electronic Crime
Scene/Police
Photo
Reproduction/Vide
$15.00 per CD or USB
50% Statutory
Registration $30.00
100% Fingerprint
Processing N/A
Pursuant to Penal Code Section 13300(e) –
$10 for LiveScan fingerprinting required for
City Services (i.e. licensing and permit
applicants) plus other Agency pass-through
charges
All others – $25.00 per card (Live Scan or
ink rolled) plus other Agency pass-through
charges
N/A
100% Noise Disturbance
Response
No charge for the initial response and
warning.
$92.00 each response for the second and
subsequent responses within a 24-hour
period.

N/A
N/A
N/A
100% Police False
Alarm Response
Deleted as the Police Department has
adopted a Verified Response Policy related
to alarms.
100% Funeral Escort
Service P.H.R.6
100% Special Police
Service P.H.R.6 or per Special Agreement/ Contract

Cost
Recovery
Reference
Number

ATTACHMENT A
Recovery
Percentage

SERVICES
PROVIDED FEE Request

POLICE SERVICES
PD-05700
Dog Impound Fee:
1st time $50.00
2nd time $100.00
3rd time $200.00
Care/feeding $10.00 per day
(1st time fee waiver if dog properly licensed
or owner requests that dog is
spayed/neutered as a condition of reclaim.)
($25.00 rabies shot deposit required for any
dog upon reclaim that is not currently
vaccinated or current vaccine will expire
within thirty (30) days.)
Cat Impound Fee:
1st time $10.00
2nd time $20.00
3rd time $30.00
Care/feeding: $5.00 per day
Altered:
1 yr $10.00
2yrs $20.00
3yrs $30.00
Unaltered:
1 yr $100.00
2 yrs $200.00
3 yrs $300.00
With a veterinarian’s letter of medical
condition a $40 one year license is available
for an unaltered dog.

Dog Impound Fee:
1st time $50.00
2nd time $100.00
3rd time $200.00
Care/feeding $5.00 per day
(1st time fee waiver if dog properly licensed
or owner requests that dog is
spayed/neutered as a condition of reclaim.)
($18.00 rabies deposit required for any dog
upon reclaim that is not currently
vaccinated or current vaccine will expire
within thirty (30) days.)
Cat Impound Fee:
1st time $10.00
2nd time $20.00
3rd time $30.00
Care/feeding: $5.00 per day
Altered:
1 yr $10.00
2yrs $20.00
3yrs $30.00
Unaltered:
1 yr $100.00
2 yrs $200.00
3 yrs $300.00
With a veterinarian’s letter of medical
condition a $40 one year license is
available for an unaltered dog.

Animal Control
Operations50%

Cost
Recovery
Reference
Number

ATTACHMENT A
Recovery
Percentage

SERVICES
PROVIDED FEE Request

POLICE SERVICES
PD-05700 Animal Control
Operations
50% discount for seniors (65 and older) for
altered dog licenses only.
$1 of the dog license fee will be reserved for
the animal control building fund.

Late Fee: $ 35.00

Spay/Neuter Fee: Customer will be
charged the current cost of spay/neuter
service as contracted by the City of Turlock
with its outside vendors.

Rabies Vaccination Fee: Customer will be
charged the current cost of rabies
vaccination fees as contracted by the City of
Turlock with its outside vendors
Quarantine Fee (Bite Animal): $35.00 first
day and $15.00 each day thereafter for
care/feeding
Home Verification of Quarantine:
$25.00
Surrender Fees (owned pet) delivered to
Animal Control Facility:

Adult dog: $100.00
Adult cat: $50.00
Puppy (< 6 mos.): $50.00
Kitten (< 6 mos.): $25.00
50% discount for seniors (65 and older) for
altered dog licenses only.
$1 of the dog license fee will be reserved
for the animal control building fund.

Late Fee: $ 35.00

Spay/Neuter Fee: Customer will be
charged the current cost of spay/neuter
service as contracted by the City of Turlock
with its outside vendors.

Rabies Vaccination Fee: Customer will be
charged the current cost of rabies
vaccination fees as contracted by the City
of Turlock with its outside vendors
Quarantine Fee (Bite Animal): $35.00 first
day and $9.00 each day thereafter for
care/feeding
Home Verification of Quarantine:
$25.00
Surrender Fees (owned pet) delivered to
Animal Control Facility:

Adult dog: $50.00
Adult cat: $20.00
Puppy (< 6 mos.): $20.00
Kitten (< 6 mos.): $10.00
50%
Continued

Cost
Recovery
Reference
Number

ATTACHMENT A
Recovery
Percentage

SERVICES
PROVIDED FEE Request

POLICE SERVICES
PD-05700
PD-05700
PD-05800
25%
Continued
Animal Control
Operations
Litter (4 or more $25.00
with proof of spay
or surrender of the
mother only.)
Owner-requested animal pick-up fee:
$25.00
Disposal of Dead Animal brought to
Animal Control Facility:

Small Animal (1-39 lbs) $10.00
Large Animal (>40 lbs) $20.00
Animal Trap Rental:
$50.00 deposit plus $2.00 per day
Animal Services Inspection:
$25.00

Potbellied Pig License Fee:
$20 per year
Microchip Fee:
$20.00 per animal
25%
Continued
Animal Control
Operations
Barking Dog Collars (pilot program)
Rental Deposit - $50.00
Vicious/Nuisance Dog Fee (per State
of CA Food & Agricultural Code Section
31641) - $100.00
Breeder Certificate $100/year (See TMC
Section 6.1.601 for failure to obtain penalty)
Rescue Permit (per TMC 6-1-117, requires
annual inspection) - $100.00
100% Background
Check $34.00 per investigation
Litter (4 or more $50.00
with proof of spay
or surrender of the
mother only.)
Owner-requested animal pick-up fee:
$25.00
Disposal of Dead Animal brought to
Animal Control Facility:

Small Animal (1-39 lbs) $20.00
Large Animal (>40 lbs) $40.00
Animal Trap Rental:
$50.00 deposit plus $2.00 per day
Animal Services Inspection:
$25.00

Potbellied Pig License Fee:
$20 per year
Microchip Fee:
$20.00 per animal
Barking Dog Collars (pilot program)
Rental Deposit - $50.00
Vicious/Nuisance Dog Fee (per State
of CA Food & Agricultural Code Section
31641) - $100.00
Breeder Certificate $100/year (See TMC
Section 6.1.601 for failure to obtain penalty)
Rescue Permit (per TMC 6-1-117, requires
annual inspection) - $100.00
N/A

Cost
Recovery
Reference
Number

ATTACHMENT A
Recovery
Percentage

SERVICES
PROVIDED FEE Request

POLICE SERVICES
PD-06000
PD-06100
PD-61200
PD-06400
PD-06500
PD-13900
PD-14000
PD-05900 100%
Vehicle
Identification
Number (VIN)
Verification
$250.00 deposit required
$150.00 per day or partial day, subject to
restrictions per Resolution 2002-064
Original Filing: $100.00
Plus fingerprinting charges (See PD 4900)
per California Penal Code §26190
Renewal: $25.00
(reprinting not required)
100%
Firing Range
Facility Rental (as
authorized by City
Council)
100% Bingo Games
Application
100% ABC One-Day
Permit
100%3 Concealed
Weapon Permit
100%
Criminal
Processing
(Booking)
P.H.R.6 plus pass-through of County
Jail Booking Fees
$23.00
Service currently suspended as DMV only
recognizes CHP verifications (not local
agencies)
N/A
N/A
100%
Ambulance
License
Application
100%
Concealed
Weapon Permit
Modification or
Duplication
$10.00 N/A
N/A
N/A$40.00
N/A
N/A
Initial application fee $305.00
Plus Fingerprinting Charges
(See PD-4900)
Annual Renewal fee $100.00
(reprinting not required)
Initial: $305.00
Renewal: $100.00

Cost
Recovery
Reference
Number

ATTACHMENT A
Recovery
Percentage

SERVICES
PROVIDED FEE Request

POLICE SERVICES
PD-14100
PD-14200
PD-14300
PD-14400
PD-14500
PD-14600
N/A
N/A
N/A
N/A
N/A
N/A
100%
Enforcement/Sign
age for Cruising,
Loitering, and
Skateboarding
$40.00
Original Filing:

Owner/Operator $305.00
Employee $100.00
Plus fingerprinting charges
(See PD 4900)
Renewal:

Owner/Operator $100.00
Employee $100.00
(reprinting not required)
Initial Application: $305.00
Plus fingerprinting charges
(See PD 4900)
Renewal: $100.00
(reprinting not required)
Initial: $64.00
Renewal: $32.00
Initial Application: $305.00
Plus fingerprinting charges
(See PD 4900)
Renewal: $100.00
(reprinting not required)
100% Fortune Telling
Permit
Initial Application: $305.00
Plus fingerprinting charges
(See PD 4900)
Renewal: $100.00
(reprinting not required)
100% Dance Hall
Application
100% Card Room
Application
100%
Garbage Disposal
(Individual’s)
Permit
100%
Introduction,
Dating, Escort
Service Permit

Cost
Recovery
Reference
Number

ATTACHMENT A
Recovery
Percentage

SERVICES
PROVIDED FEE Request

POLICE SERVICES
PD-14700
PD-14800
PD-14900
PD-15000
PD-15200
Pool Room
Permit,
Amusement
Machine Permit,
Marble Games
Permit
Tow Car or Tow
Service
Application
N/A
N/A
Initial Application: $305.00
Plus fingerprinting charges
(See PD 4900)
Renewal: $100.00
(reprinting not required)
Initial Application:

Business: $305.00
Employee: $100.00
Plus fingerprinting charges
(See PD 4900)
Renewal:

Business : $100.00
Employee $100.00
(reprinting not required)
Initial Application:

Owner/Operator $305.00
Employee $50.00
Plus fingerprinting charges
(See PD 4900)
Renewal:

Owner/Operator $100.00
Employee $ 25.00
(reprinting not required)
N/A
N/A100% Skating Rink
Application
Initial Application: $305.00
Plus fingerprinting charges
(See PD 4900)
Renewal: $172.00
(reprinting not required)
100%
100%
Taxicabs and
Autos for Hire
Includes limousine
services
100%
Initial Application:

Owner/Operator $501.00
Employee $100.00
Plus fingerprinting charges
(See PD 4900)
Renewal:

Owner/Operator $100.00
Employee $100.00
(reprinting not required)
100%
Massage
Establishment
Permit
N/A

Cost
Recovery
Reference
Number

ATTACHMENT A
Recovery
Percentage

SERVICES
PROVIDED FEE Request

POLICE SERVICES
PD-15300
PD-15500
PD-15700
PD-15800
PD-15900
PD-16000
PD-16100
N/A
N/A
N/A
N/A
100% Stored/Impounded
Vehicle Release $160.00
Original Permit:

Owner - $55.00
Each Employee - $55.00
Plus Fingerprinting Charges
(See PD-4900)
Renewal Permit:

Owner - $50.00
Each Employee - $50.00
(reprinting not required)
100% Close-Out and
Similar Sales Filing Fee: $50.00
100% Sidewalk Sales
Permits Filing Fee: $417.00
100% Retail Firearms
Sales Permit
100% Second/Pawn
Dealers Permits
100% N/A
N/A
N/A
$52.00
Plus Fingerprinting Charges (as required)
(See PD-4900)
Vehicle
Repossession
Report
$15.00
Owner - $100.00
Plus Fingerprinting Charges (See PD-4900)
and DOJ application fees
Each Employee - $100.00
Plus Fingerprinting Charges (See PD-4900)
and DOJ application fees
Itinerant Vendor
Police Clearance
100%

Cost
Recovery
Reference
Number

ATTACHMENT A
Recovery
Percentage

SERVICES
PROVIDED FEE Request

POLICE SERVICES
PD-16600
PD-18400
PD-19000
PD-19300
PD-19400
PD-19500
PD-19600
100% Firearms Storage
Fee $75.00 per year
N/A
N/A
100%
Failure to Display
Placard (Veh
Code 40226)
Administration
Charge for
Citation
Cancellation
$25.00
$750.00 100%
Adult Business Permit: $305.00
Plus fingerprinting charges
(See PD 4900)
Adult Entertainer Permit: $305.00
Plus fingerprinting charges
(See PD 4900)
Renewal/Owner: $100.00
Renewal/Employee: $100.00
(reprinting not required for renewal)
100%
Adult
Business/Entertai
ner Permit
Public
Convenience and
Necessity
N/A
N/A
100% Cannabis
Employee Permit
$100 for initial permit
plus fingerprinting (see PD-04900)
$100 for annual renewal
(reprinting not required)
100%
Suspended/unlice
nsed Driver
Vehicle Release
$250.00 N/A
100% DUI Driver Vehicle
Release $450.00 N/A
N/A

Cost
Recovery
Reference
Number
R-13802

CITY BUILDING ROOM FACILITY AND PARK RENTALS
Weekend Rental Fees
Class A
$840 per day plus
$1,000 deposit per day
Class B
$660 per day plus
$1,000 deposit per day
for non-profit
Other Fees Class A/B
Early entry $110
Weekday Rental
Hourly Fees (Min 2
Hrs)
Class A
$105 per hour plus
$500 deposit per day
Class B
$79 per hour plus
$500 deposit per day

ATTACHMENT A
Recovery
PercentageSERVICES PROVIDED FEE Request
Class A – Rentals for private meetings, parties, banquets and social events (such as wedding receptions, anniversary or birthday parties, cultural events, etc.) Class B – Non-profit service and community organizations having no less than 75% of its member’s residents of the City of Turlock. Must show proof of 501(c)(3) status with the Internal Revenue Service, current Entity Letter and Articles of Incorporation.

Class C – No Fee – Uses and activities administered and/or sponsored by the City of Turlock Class D – No Fee – Uses and activities administered and/or sponsored by the Turlock Unified School District
Fees will go into effect September 1, 2025
See Above
Senior Center
Weekend Rentals
Weekday Hourly
Rentals (minimum
two hours)
Weekend Rental Fees
$800 per day plus $1,000
deposit per day
$630 per day plus $1,000
deposit per day
for non-profit
(Class B) Early
Entry $105
Weekday Hourly
Rental Fees
$100 per hour plus $500
deposit per day
$75 per hour plus $500
deposit per day

Cost
Recovery
Reference
Number

CITY BUILDING ROOM FACILITY AND PARK RENTALS

ATTACHMENT A
Recovery
PercentageSERVICES PROVIDED FEE Request
R-13804
R-13809
R-13805
R-13806
R-13808
n/a Building Rental
Contract Revision $30.00/revision N/A
n/a Other Building
Rental Fees Remove
n/a Cancellation Fee –
Building Rentals N/A
n/a
Park, Pool, Sports
Facilities
Reservation
Change Fee
$10.00/transaction N/A
$50.00 if cancelled more
than 30 calendar days prior
to the event.

One-fourth (25%) the
amount of the rental fee
plus $50 if cancelled 30
calendar days, or less, prior
to the event.

See Above
Rube Boesch
Center
Weekend Rentals
Weekday Hourly
Rentals (minimum
two hours)
Weekend Rental Fees
$375 per day plus $500
deposit per day
$275 per day plus $500
deposit per day for non-
profit (Class B)
Early Entry $75.00
Weekday Hourly Rental
Fees
$50 per hour plus $250
deposit per day
$40 per hour plus $250
deposit per day
Weekend Rental Fees
Class A
$395 per day plus
$500 deposit per day
Class B
$289 per day plus
$500 deposit per day
Other Fees Class A/B
Early entry $79
Weekday Rental
Hourly Fees (Min 2
Hrs)
Class A
$52 per hour plus
$500 deposit per day
Class B
$42 per hour plus
$500 deposit per day

Cost
Recovery
Reference
Number

CITY BUILDING ROOM FACILITY AND PARK RENTALS

ATTACHMENT A
Recovery
PercentageSERVICES PROVIDED FEE Request
R-09000 &
R-09001
R-09004
Adult Tournaments
$185.00/field/day without
gate fee
$235.00/field/day with gate
fee
Youth Tournaments
$170.00/field/day – without
gate fee
$220.00/field/day – with
gate fee
Hourly Rentals For All
Uses:
$40.00/hour/field – youth
and seniors
$45.00/hour/field – adults
Lights - $17.00/hour
Additional Field Preps -
$28.00/field
Partial Prep - $17.00
90%
Adult Tournaments
$190.00/field/day without
gate fee
$240.00/field/day with
gate fee
Youth/Senior
Tournaments
$175.00/field/day without
gate fee
$225.00/field/day with
gate fee
Hourly Rentals For All
Uses
Youth/Senior
$42.00/hour/field
Adult $47.00/hour/field
Lights $17.00/hour
Additional Field Preps
$28.00/field
Partial Prep $17.00
Fees will be the same as
listed for Pedretti Fields
Pedretti Field –
Adult/Youth
n/a
Park, Pool, Sports
Facilities
Reservation
Cancellation Fee
$25.00/transaction N/A
Turlock Regional
Sports Complex
Baseball/Softball
Field Usage
Fees associated with usage
of the Baseball/Softball
fields will be the same as
listed for the fields at
Pedretti

Cost
Recovery
Reference
Number

CITY BUILDING ROOM FACILITY AND PARK RENTALS

ATTACHMENT A
Recovery
PercentageSERVICES PROVIDED FEE Request
R-09002
&
R-09003
R-09900 RemoveN/A Picnic Facility
Reservation Service Rental Fee
Area F $90.00
R-09901
90%
Turlock Regional
Sports Complex
Soccer Fields
Usage
Adult & Youth
(rates based on
calendar 2006
percentages)
Adult Field Usage
Per Field Usage:
$45.00/hour
(2 hour min)
Tournament Rate:
$405.00/field
Youth Field Usage
Per Field Usage:
$40.00/field
(2 hour min)
Tournament Rate:
$325.00/field
Applies to All Soccer Uses
Non-Refundable Rental
Deposit: $150.00
Vendor Daily Rental:
$50.00
Vendor Deposit: $0
Storage Building Rental:
$100.00/month
Additional Facility
Requests: fee to be
determined based on
individual request
Adult Field Usage
$47.00/hour/field
(2 hour min)
Tournament Rate
$410.00/field
Youth/Senior Field
Usage
$42.00/hour/field
(2 hour min)
Tournament Rate
$330.00/field
Applies to All Soccer
Usage
Non-Refundable Rental
Deposit $150.00
Vendor Daily Rental
$50.00
Vendor Deposit $0
Storage Building Rental
$100.00/month
Additional Facility
Requests: fee to be
determined based on
individual request
Area G $44.00
Area H $42.00 Area H $44.00
Area I $42.00 Area I $44.00
N/A Donnelley Donnelly
Park
Area A $42.00
Area B $42.00
Area G $42.00
Area A $44.00
Area B $44.00
Area C $69.00 Area C $72.00
Area D $37.00 Area D $39.00
Area E $37.00 Area E $39.00
Area F $86.00

Cost
Recovery
Reference
Number

CITY BUILDING ROOM FACILITY AND PARK RENTALS

ATTACHMENT A
Recovery
PercentageSERVICES PROVIDED FEE Request
R-09903
R-09906
R-13810

RECREATION PROGRAMS
Fees will go into effect September 1, 2025
Special Event
For Profit Business/
Organization: $150.00
Non-Profit Business/
Organization: $100.00
(Proof of 501C3 or 501C4)
Late Fee: $150.00
(Application received after
identified deadline)
For Profit Business/
Organization: $150.00
Non-Profit Business/
Organization: $100.00
(Proof of 501C3 or
501C4)
Late Fee: $100.00
(Application received
after identified deadline)
Babysitting Class
$30.00 (See Additional
participant fee in "other
Fees")
N/A
25%
16%
25%
25%
Area J $42.00 Area J $44.00
Area L $39.00
Area M $69.00 Area M $72.00
Area N $$37.00 Area N $39.00
Meadow $113.00 Meadow $119.00
Area L $37.00
Area K $37.00 Area K $39.00
Area G $53.00 Area G $55.00
R-09902 N/A Crane Park
Area A $47.00 Area A $49.00 Area B $79.00 Area B $83.00
Area C $68.00 Area C $71.00
Area D $57.00 Area D $60.00
Area E $47.00 Area E $49.00
Area F $47.00 Area F $49.00
R-09905 N/A Broadway Park
Area A $69.00 Area A $72.00 Area B $37.00 Area B $39.00
Area C $42.00 Area C $44.00
100% Bounce House
Permits
$37.00 at designated
locations
$39.00 at designated
locations
Area H $47.00 Area H $49.00
N/A Pedretti Park Covered Area $88.00 Covered Area $92.00

Cost
Recovery
Reference
Number

CITY BUILDING ROOM FACILITY AND PARK RENTALS

ATTACHMENT A
Recovery
PercentageSERVICES PROVIDED FEE Request
Holiday Christmas
Parade Entry Fee
Basketball- Youth
Clinics Vary
Depending on length
Open Gym: $39.00
Clinic 2: $48.00
Clinic 3: $53.00
Clinic 4: $68.00
(See Additional participant
fee in "other Fees")
N/A
Dance Etc.

I. 2-3yrs $65.00
II. 4+ yrs $81.00
III. Ballet 1&2 $103.00
IV. Ballet 3&4 $123.00
Recital Fee $2.00 / per
person
(See Additional participant
fee in "other Fees")
I. 2-3yrs $68.00
II. 4+ yrs $83.00
III. Ballet 1&2 $106.00
IV. Ballet 3&4 $126.00
Recital Fee $2.00 / per
person
(See Additional
participant fee in
"other Fees")
Non-Profit/General $65.00
Commercial $85.00
Late Fee $25.00
Entries over 50
feet total
additional $25.00
(No participant Fee)
Non-Profit/General
$70.00
Commercial $90.00
Late Fee $25.00
Entries over 50
feet total
additional $25.00
(No participant Fee)
Fun Run
1-Mile: $20.000
2-Mile: $25.00
(No participant Fee)
1-Mile: $22.00
2-Mile: $28.00
(No participant Fee)

Cost
Recovery
Reference
Number

CITY BUILDING ROOM FACILITY AND PARK RENTALS

ATTACHMENT A
Recovery
PercentageSERVICES PROVIDED FEE Request
I. 11-15 years old beginner
$78.00 II. 12-
15 years old advanced
$78.00 (See
Additional participant fee in
"other fees")
I. 11-15 years old
beginner $80.00
II. 12-15 years old
advanced $80.00
(See Additional
participant fee in "other
fees")
Start-Up/Pilot
Programs
Instructional
Classes/Clinic
(Not listed
elsewhere)
This is for new “start-up”
programs/classes. The fee
will be calculated based on
staff analysis of the total
costs of providing the
program/class. If the
program/class is continued
beyond the initial year, it will
be individually added to this
list. (See Additional
participant fee in
"other fees")
Start-Up/Pilot
Programs
Fees for new or pilot
programs, services, or
rentals will be
determined based on a
staff analysis of the total
costs of providing the
activity. These may
include, but are not
limited to, recreation
classes, facility/field
rentals, special events,
or other services. If the
activity continues
beyond its initial year or
pilot phase, it will be
individually evaluated
and formally added to
the established fee
schedule. *(See
Additional
Participant/User Fee in
"Other Fees")
Sticks for Kids Golf
$35.00
(See additional participant
fee in "other fees")
$40.00
(See additional
participant fee in "other
fees")
Jr. Lifeguard

Cost
Recovery
Reference
Number

CITY BUILDING ROOM FACILITY AND PARK RENTALS

ATTACHMENT A
Recovery
PercentageSERVICES PROVIDED FEE Request
Pee Wee Baseball
(7 – 8 year)
$60.00 Spring/Summer
(See Additional participant
fee in "other fees")
$63.00
(See Additional
participant fee in "other
fees")
Basketball Open
Gym-Teens
$39.00
(See Additional participant
fee in "other fees")
N/A
Pedretti Park Player
Participation Fees
Youth: $2.00 per player/per
league
Adult: $1.00 per player/per
game/per league
Remove
School Break Camp
1 week camp- 1/2
day $75.00 (Additional
children in same program
$70.00 each)
1 week camp - full day
$140.00 (Additional children
same program
$130.00 each)
Daily Fee $40.00 (No multi-
child discount)
(Annaul Registration $15.00
"Summer")
1 Week Camp - Half
Day
$80.00
(Additional children in
same program
$75.00 each)
1 Week Camp - Full
Day $150.00
(Additional children
same program
$140.00 each)
Other Fees
Daily Fee $50.00
(No multi-child discount)
Registration Fee
$20.00 Annually
Pedretti Park and
Regional Sports
Complex Baseball
Softball
Tournaments
Class 1: $250.00
Class 2: $275.00
Class 3: $300.00
$31.00/tournament will be
retained in the Recreation
Division to fund/reservation
cost.

Class 1: $275.00
Class 2: $300.00
Class 3: $325.00
$31.00/tournament will
be retained in the
Recreation Division to
fund/reservation cost.

Cost
Recovery
Reference
Number

CITY BUILDING ROOM FACILITY AND PARK RENTALS

ATTACHMENT A
Recovery
PercentageSERVICES PROVIDED FEE Request
PLAY
(Positive Leisure
Activities for Youth)
Weekly: $48.00 (additional
children in same program:
$43.00/week)
Morning Care Weekly $20.00
Emergency 1-day fee $25.00
(no multi-child discount).

Participant Fee:

Annual Registration $55.00
(Full year)
Late Registration
(3/1- End of School Year)
$30.00
Weekly: $50.00
(additional children in
same program-
$45.00/week)
Morning Care Weekly
$25.00
Emergency 1-day fee
$30.00 (no multi-child
discount)
Annual Registration
$55.00
Recreational
Swimming
Youth 0-17 yrs - $1.00
Adult 18+ yrs - $3.00
$0.75 pre-sale swim passes
to qualifying
nonprofit agencies
N/A
Softball, Adult
Spring $325.00/team
Summer: $585.00/team
Fall: $450.00/team
ASA Team Registration:
$20.00/Adult &
$13.00/Youth
Participant Fee:
$1.00 per player / per
game player fee
Spring $340.00/team
Summer $600.00/team
Fall $465.00/team

Player Fee:
$1.00 per player, per
game

Cost
Recovery
Reference
Number

CITY BUILDING ROOM FACILITY AND PARK RENTALS

ATTACHMENT A
Recovery
PercentageSERVICES PROVIDED FEE Request
Youth Volleyball
Jr. High $48.00
High School $58.00
(See Additional participant
fee in "other fees")
Jr. High $50.00
High School $60.00
(See Additional
participant fee in "other
fees")
Tiny Tot Baseball
Other Fees
$55.00
(See Additional participant
fee in "other fees")
$58.00
(See Additional
participant fee in "other
fees")
Special Events
The fee will be calculated
based on staff analysis of
the total costs of providing
the event. These
activities/events are
anticipated to be few and
unique in nature.
(See Additional participant
fee in "other fees")
Remove
Track
$43.00 per session
(See Additional participant
fee in "other fees")
$45.00 per session
(See Additional
participant fee in "other
fees")
Summer: $48.00
(See Additional
participant fee in "other
fees")
T-Ball Baseball (5-6
years)
$60.00 Spring/ Summer
(See Additional participant
fee in "other fees")
$63.00
(See Additional
participant fee in "other
fees")
Fees will go into effect September 1, 2025
Swimming Lessons
Summer: $45.00
(See Additional participant
fee in "other fees")

Cost
Recovery
Reference
Number

CITY BUILDING ROOM FACILITY AND PARK RENTALS

ATTACHMENT A
Recovery
PercentageSERVICES PROVIDED FEE Request
N/A
Program Late Fee
Turlock Night Out
(Friday Night Out) Free Remove
Additional fee added to
program fees to assist
with administration
overhead cost
$6.00 Youth resident
$8.00 Adult resident
NOTE – Prorated Class Fees: Program fee divided by number of classes determines daily rate to determine prorated fee.

Note - PLAY (Positive Leisure Activities For Youth) program fees will go into effect July 1, 2023
The following programs are partnerships. free to the participants.

The funding mechanism is noted beside each program.

Program Transfer
Fee
$8.00 per person.

No participant fee N/A
Marty Yerby Center
After School
Program
Turlock Police Activities
League Free Public Program
Rec on Wheels Free Remove
Individual: $5.00
Team: $30.00 N/A
Program
Cancellation Fee
$10.00
No participant fee
ASES (After School
Education and
Safety) Grant
$75.00 Annual Registration
Fee
Fee can be waived by
Turlock Unified School
District
$75.00 Annual
Registration Fee
PLAY/Camps Late
Fee
$10.00 per week
$10.00 per punch card
$12.00 per week
Participant Fee Per
Person, Per
Program
Additional fee added to
program fees to assist with
administration overhead
cost
$6.00 Youth resident
$8.00 adult resident

Cost
Recovery
Reference
Number

CITY BUILDING ROOM FACILITY AND PARK RENTALS

ATTACHMENT A
Recovery
PercentageSERVICES PROVIDED FEE Request
Youth Self Defense
Class 1: $56.00
Class 2: $64.00
Class 3: $72.00
Class 4: $80.00
(See Additional participant
fee in "other fees")
Fees established
according to contracted
with service provider

Cost
Recovery
Reference
Number
T-10600 N/A

ATTACHMENT A
100% Transportation
Operations
Maintain Current Fee
Structure
Recovery Percentage SERVICES PROVIDED FEE Request

TRANSIT

ATTACHMENT A

Explanatory Notes to Recovery Percentages

1. Recovery 20% with a no refund policy.

2. Not to exceed statutory limitation.

3. 100% on private inspections, no cost to schools.

4. Incorporated into M-11700 Industrial Rate Section.

5. 100% recovery plus postage.

6. ”Productive Hourly Rate” (P.H.R.) is defined as a City employee’s hourly work rate based on 1,752 productive hours in a single year. The hourly work rate includes components for base salary, fringe benefits, department specific overhead, and City-wide overhead.

7. ”Deposit-based” permit fee : Charged at “actual cost” using the weighted labor rate or “ Productive Hourly Rate ” (P.H.R.)6. The minimum charge for the permit is equal to the deposit amount and is nonrefundable. All additional staff time and expenses to complete the application process, including costs accrued by other City divisions or departments, exceeding the initial deposit amount will be charged at actual cost. If the deposit reaches a balance less than 20% of the initial deposit, the Applicant will be notified by the Turlock Planning Division to make a subsequent deposit, as determined by the Manager of the Planning Division, based on the estimated work remaining. Applicants shall pay the subsequent deposit within 14 days of the invoice date. If the subsequent deposit is not received within 14 days of the invoice date, processing of the application will be suspended until such time that the subsequent deposit is received by the City of Turlock Planning Division. If a balance remains after reconciling the final invoice, a refund check will be mailed to the Applicant. Public hearings will not be scheduled until payment in full is received by the Turlock Planning Division.

8. Additional fees will be collected at the time of application and prior to filing the Notice of Determination as established by the State of California Department of Fish and Game and the Stanislaus County Clerk-Recorder’s Office.

9. Permit fee is added to applicable entitlement fee (base fee) to cover staff and expenses associated with the LAFCO application review and hearing processes. If no other entitlement is required for the project, the base fee is the same as the applicable Rezone application fee to cover staff and expenses associated with application review and hearing processes for the City.

10. Permit fee is added to any other applicable application fees. If no other entitlement is required, no base fee is added.

City Council Staff Report
August 26, 2025

From: Susan E. Borrego, Interim City Manager
Prepared by: Jennifer Figueroa, Housing Program Manager Agendized by: Susan E. Borrego, Interim City Manager

1. ACTION RECOMMENDED:

Resolution: Approving the first substantial amendment to the Fiscal Year 2024-2025 City of Turlock/Stanislaus County HOME Consortium Annual Action Plan for the HOME Investment Partnerships (HOME) Program, authorizing the submission of the Annual Action Plan amendment to the U.S. Department of Housing and Urban Development (HUD), and authorizing the Interim City Manager to execute all related and necessary documents.

2. DISCUSSION OF ISSUE:

On April 23, 2024, City Council approved the Fiscal Year 2024-2025 Annual Action Plan for the Community Development Block Grant (CDBG) and the HOME Investment Partnerships (HOME) program. The Annual Action Plan outlines the resources anticipated to be available and specifies the general activities proposed to be funded during the fiscal year to address the priority needs outlined in the Strategic Plan portion of the 2020-2025 Consolidated Plan.

The City of Turlock Citizen Participation Plan outlines the process and requirements to amend an Annual Action Plan. Substantial changes as identified in the plan must be available for a 30-day comment period and must be brought to Council for consideration.

Changes to the funding allocations in the Fiscal Year 2024-2025 Annual Action Plan among the various eligible project categories are proposed for HOME funding.

HOME funding is available to the Cities of Turlock, Ceres, Hughson, Newman, Oakdale, Patterson, Riverbank, Waterford, and the unincorporated areas of Stanislaus County as part of the Turlock/Stanislaus HOME Consortium. The HOME program provides funding to purchase, build, and/or rehabilitate affordable housing for low-income individuals. It also supports first-time home buyer assistance and grants and/or loans to rehabilitate both owner- occupied and rental units.

Currently, for the HOME funding, the Fiscal Year 2024-2025 Annual Action Plan shows $300,000 for First Time Homebuyer Assistance, down payment assistance for first-time home buyers and $1,397,733 for Housing Rehabilitation for both owner-occupied and rental units.

The proposed substantial amendment would increase/decrease projects as follows:
• Increase Consortium First Time Home Buyer Assistance HOME funding from $300,000 to $900,000 (increased by $600,000)

Agenda Staff Report
8/26/2025

• Decrease Housing Rehabilitation HOME from $1,397,733 to $797,733 (decreased by $600,000)

Each HOME allocation comes with a deadline by which funds must be spent. Currently, the City has approximately $600,000 in HOME funds that must be used by September 2026.

Spending these funds under the Housing Rehabilitation category has proven challenging due to strict federal housing standards. Many homeowners are unable to take on substantial loans required to bring their home into full compliance with these standards. As a result, the Housing Rehabilitation category has seen no activity.

The Housing Program Services Division has recently updated the First-Time Home Buyer program. In an attempt to spend the HOME funds, staff are recommending reallocating $600,000 from the HOME Housing Rehabilitation category to the HOME First-Time Home Buyer Assistance category to support timely expenditure of the funds.

3. BASIS OF RECOMMENDATION:

1. The City of Turlock has an expenditure deadline for HOME funds. In an attempt to meet the HOME spending deadlines, staff are recommending reallocating $600,000 from the HOME Housing Rehabilitation category to the HOME First-Time Home Buyer Loans category.

4. FISCAL IMPACT / BUDGET AMENDMENT:

The reallocation of HOME funds will be addressed through an administrative budget transfer if Council approves the proposed amendment.

5. STAFF RECOMMENDATION:

Recommend approval.

6. CITY MANAGER COMMENTS:

Recommend approval.

7. ENVIRONMENTAL DETERMINATION:

The City is allocating proposed funding for programs and projects, subject to future approval from HUD. The City is not committing funding to or undertaking any project in a manner that will have an adverse environmental impact that forecloses reasonable alternatives or mitigation measures that would ordinarily be par of NEPA or CEQA review for any project.

As part of the HUD process for releasing HOME funds to the City, before the City commits to funding, awards, or enters into a contract for a project and when more meaningful information for environmental assessment is available for certain of the anticipated projects, the City will comply with the applicable requirements of NEPA and/or CEQA for each project [24 CFR section 58.22(a) and 14 CCR Section 150049(b)].

8. ALTERNATIVES:

Agenda Staff Report
8/26/2025

A. Council could deny approving the substantial amendment to the FY 2024-2025 Annual Action Plan reallocating $600,000 from the HOME Housing Rehabilitation project category to the HOME First-Time Home Buyer Assistance project category. This is not recommended as staff are attempting to spend the needed funds by the HOME program deadline.

9. ATTACHMENTS:

1. 24-25 AAP Amendment Resolution

2. 2024-2025 Substantial Amendment 1

BEFORE THE CITY COUNCIL OF THE CITY OF TURLOCK

IN THE MATTER OF APPROVINGTHE FIRST }
SUBSTANTIAL AMENDMENT TO THE FISCAL } RESOLUTION NO. 2025- YEAR 2024-2025 CITY OF TURLOCK/ }
STANISLAUS COUNTY HOME CONSORTIUM }
ANNUAL ACTION PLAN FOR THE HOME }
INVESTMENT PARTNERSHIPS (HOME) }
PROGRAM, AUTHORIZING THE SUBMISSION OF }
THE ANNUAL ACTION PLAN AMENDMENT TO }
THE U.S. DEPARTMENT OF HOUSING AND }
URBAN DEVELOPMENT (HUD), AND }
AUTHORIZING THE INTERIM CITY MANAGER TO }
EXECUTE ALL RELATED AND NECESSARY }
DOCUMENTS. }
}

WHEREAS, the City Council approved the Fiscal Year 2024-2025 Annual Action Plan on April 23, 2024; and

WHEREAS, the Annual Action Plan approved HOME funding in the First Time Home Buyer Assistance HOME funding project and the Housing Rehabilitation HOME funding; and

WHEREAS, changes made to an approved Annual Action Plan require a Substantial Amendment; and

WHEREAS, HUD requires that when there is a change in the adopted Annual Action Plan, jurisdictions must go through a public participation process including a public comment period and Council action; and

WHEREAS, public notice of the action was published July 19, 2025 on the City of Turlock website, establishing a public comment period from July 19, 2025 through August 20, 2025; and

WHEREAS, the funding for the First Time Home Buyer Assistance HOME project will be increased by $600,000 to a total of $900,000; and

WHEREAS, the funding for the Housing Rehabilitation HOME project will be decreased by $600,000 for a total of $797,733; and

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Turlock does hereby adopt a resolution approving the first substantial amendment to the Fiscal Year 2024-2025 City of Turlock/Stanislaus County HOME Consortium Annual Action Plan for the HOME Investment Partnerships (HOME) Program, authorizing the submission of the Annual Action Plan amendment to the U.S. Department of Housing

Resolution No. 2025-

and Urban Development (HUD), and authorizing the Interim City Manager to execute all related and necessary documents.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Turlock this 26th day of August, 2025, by the following vote:

AYES:

NOES:

NOT PARTICIPATING:

ABSENT:

ATTEST:

__________________________
Nichole Fiez, City Clerk,
City of Turlock, County of Stanislaus,
State of California

City of Turlock
First Substantial Amendment
to the FY 2024-2025 Annual Action Plan
City of Turlock and Turlock/Stanislaus Urban County HOME Consortium

Notice is hereby given to residents of the City of Turlock that a draft Substantial Amendment to the fiscal year (FY) 2024-2025 Annual Action Plan is now available for review and comment.

The City of Turlock, as an entitlement jurisdiction, is required by the U.S. Department of Housing and Urban Development (HUD) to submit a 5-Year Consolidated Plan and subsequent Annual Action Plans in order to receive annual federal Community Development Block Grant (CDBG) and HOME Investment Partnership programs (HOME) Consortium funds that the City uses to address community development needs throughout the City and Consortium. The City’s Citizen Participation Plan is critical in ensuring that residents are provided the opportunity to provide input and comment on the Consolidated Plan and Action Plans.

The AAP 2024-25 amendments include the increase of funding for First Time Home Buyer Assistance HOME, decrease in funding for Housing Rehabilitation HOME. The draft substantial amendment changes include:

-Increase Consortium First Time Home Buyer Assistance funding from $300,000 to $900,000 (increased by $600,000)
-Decrease Consortium Housing Rehabilitation from $1,397,733 to $797,733 (decreased by $600,000)

Citizen Participation
The public comment period for the draft Amendment is July 19, 2025 through August 20, 2025.

The Amendment is posted on the City’s website at
https://ci.turlock.ca.us/housingprograms/programplansreports/ to solicit residents and other interested parties and opportunity to provide input and comments on the proposed Amendment. A public hearing will be held at the 6:00 pm August 26, 2025 City Council meeting at 156 South Broadway, Yosemite Conference Room, Turlock, CA 95380 to further solicit public comments and to review and approve the submission of the draft Substantial Amendments to HUD. Please see the city website under “council meetings” for current information about meeting access to comply with national and local social gathering requirements and public participation or call Turlock Administration at (209) 668-5540. Written comments or inquiries may be submitted to the Housing Program Manager, by email to:

Jennifer Figueroa, [email protected] or at (209) 668-5610 no later than August 20, 2025 at 4:00 p.m.

Substantial Amendment to FY 2023-2024 Annual Action Plan The FY 2024-2025 Annual Action Plan is substantially amended to move HOME Consortia grant funding as follows:

AP-38 Project Summary
The following funding changes to the activities are proposed.

-Increase Consortium First Time Home Buyer Loans HOME funding from $300,000 to $900,000 (increased by $600,000)
-Decrease Consortium Housing Rehabilitation HOME from $1,397,733 to $797,733 (decreased by $600,000)

Project Name First Time Home Buyer Assistance (HOME) FY2024-2025 Goals Supported Increase and Improve Supply of Affordable Housing Needs Addressed Affordable Housing
Funding HOME: $ 900,000 (Increased by $600,000)
Description First Time Home Buyer Assistance. Down payment assistance program for first time home buyers. HOME funds will be provided to income eligible clients for the purchase of their first home. Funds can be used for down payment and/or closing costs associated with the loan. (Regulatory Citation: 92.205)
Target Date 06/30/25
Estimated the number and
type of families that will
benefit from the activity
12 Families/units
Location Description HOME Consortium service area
Project Name Housing Rehabilitation (HOME) FY 2023-2024 Goals Supported Increase and Improve Supply of Affordable Housing Needs Addressed Affordable Housing
Funding HOME: $ 797,733 (decreased by $600,000)
Description Consortium wide housing rehabilitation for both owner and renter occupied units and delivery costs. The Consortium will offer loans and grants to maintain single and multifamily affordable housing stock for low to moderate income clientele. The program serves as a way to preserve and maintain affordable housing units.

Rehabilitation existing housing (Regulatory Citation: 92.205) Target Date 06/30/24
Estimated the number and
type of families that will
benefit from the activity
12 Family/household
Location Description HOME Consortium service area

The above activities and funding amounts will be revised as needed in the Annual Action Plan.

City Council Staff Report

From: Susan Borrego, Interim City Manager

Prepared by: Jennifer Figueroa, Housing Program Services Manager

Agendized by: Susan Borrego, Interim City Manager

1. ACTION RECOMMENDED:

Resolution: Authorizing the sale of property located at 570 Jason Drive, Turlock, California, Stanislaus County APN 050-036-008, to an income-eligible first- time homebuyer through a lottery process, and authorizing the Interim City Manager to execute all necessary documents to complete the transaction.

Resolution: Authorizing the sale of property located at 1827 Shadow Park Drive, Turlock, California, Stanislaus County APN 088-015-057, to an income- eligible first-time homebuyer through a lottery process, and authorizing the Interim City Manager to execute all necessary documents to complete the transaction.

Resolution: Authorizing the sale of property located at 2065 Cody Court, Turlock, California, Stanislaus County APN 089-004-012, to an income-eligible first- time homebuyer through a lottery process, and authorizing the Interim City Manager to execute all necessary documents to complete the transaction.

3. DISCUSSION OF ISSUE:

The City of Turlock owns five (5) residential properties that were purchased with the intent to rehabilitate the housing units, as necessary, to meet housing quality standards, and transfer the properties either to qualified non-profit agencies to provide and sustain affordable housing units within the City of Turlock or sell the homes to income eligible first-time homebuyers. Currently, one (1) unit is occupied by income-eligible tenants, while the other four (4) units are vacant. This is primarily due to three (3) of the five (5) units needing to be rehabilitated, while the other two (2) properties need minor repairs.

Two (2) properties will be brought back to Council with a recommendation to release a request for proposal (RFP) to transfer to a nonprofit organization to provide affordable rental housing. For the remaining three (3) properties, staff are seeking approval from Council to sell to income eligible first-time homebuyers through a lottery system:

570 Jason Drive

The property located at 570 Jason Drive, Turlock, CA is a single-family home with four (4) bedrooms and two and a half (2.5) bathrooms. The home is currently vacant. It was acquired in 2023 using Community Development Block Grant (CDBG) funds. As this property was a newly constructed home, no rehabilitation is required.

Agenda Staff Report

1827 Shadow Park Drive

The property located at 1827 Shadow Park Drive, Turlock, CA is a single-family home with three (3) bedrooms and two (2) bathrooms. The home is currently vacant. It was acquired in 2023 using CDBG and HOME Investment Partnerships Program (HOME).

The unit does need rehabilitation to meet housing quality standards. The rehabilitation is currently underway utilizing Permanent Local Housing Allocation (PLHA) funds and CDBG funds.

2065 Cody Court

The property located at 2065 Cody Court, Turlock, CA is a single-family home three (3) bedrooms and two (2) bathrooms and is currently vacant. It was acquired in 2023 using CDBG funds. The unit does need rehabilitation to meet housing quality standards. The rehabilitation is currently underway utilizing PLHA and CDBG funds.

All of the five (5) properties have previously been determined exempt surplus land and are now eligible for transfer.

4. BASIS FOR RECOMMENDATION:

Staff recommends the sale of the three (3) properties to income-eligible first-time homebuyers through a lottery selection process. This will fulfill the funding requirements and expand access to affordable homeownership.

5. FISCAL IMPACT / BUDGET AMENDMENT:

The proceeds from the sale of the three (3) properties will go back into the same funding source used to purchase the properties (CDBG and HOME funds) as program income to be used to fund future eligible activities for the applicable funding source.

6. STAFF RECOMMENDATION:

Recommends approval

7. CITY MANAGER’S COMMENTS:

Recommends approval

8. ENVIRONMENTAL DETERMINATION:

The housing units at 1827 Shadow Park Drive and 2065 Cody Court, only require issuance of a building permit for the work to be done to rehabilitate the structures, therefore in accordance with Section 15268 of the CEQA Guidelines the projects are Exempt from the provisions of CEQA.

The housing unit at 570 Jason Drive only involved the purchase of an existing single- family home located on one lot and the action before Council consists of authorizing the sale of the property. Therefore, under Section 15378 of the CEQA Guidelines this action

Agenda Staff Report

does not constitute a project as the action does not have the potential for resulting in either a direct or reasonably foreseeable indirect physical change in the environment.

570 Jason Drive

The NEPA Environmental review concluded on January 31, 2023 that this project is categorically excluded and converts to exempt per 24 CFR 58.34(a)(12).

1827 Shadow Park Drive

The NEPA Environmental review concluded on February 15, 2023 that this project is categorically excluded and converts to exempt per 24 CFR 58.34(a)(12).

2065 Cody Court

The NEPA Environmental review concluded on January 31, 2023 that this project is categorically excluded and converts to exempt per 24 CFR 58.34(a)(12).

9. ALTERNATIVES:

Council could choose to not approve the sale of three (3) of the properties to first-time homebuyers. This alternative is not recommended because it requires the Housing Division to assume the role of property management. The Division lacks the necessary resources to effectively manage properties. In addition, one (1) of the properties were purchased with HOME funds and will be a failed project if not transferred by January 2027.

BEFORE THE CITY COUNCIL OF THE CITY OF TURLOCK

IN THE MATTER OF APPROVING THE SALE OF }
PROPERTY LOCATED AT 570 JASON DRIVE, } RESOLUTION NO. 2025- TURLOCK, CALIFORNIA, STANISLAUS COUNTY }
APN 050-036-008, TO AN INCOME-ELIGILBLE }
FIRST-TIME HOMEBUYER THROUGH A }
LOTTERY PROCESS AND AUTHORIZING THE }
INTERIM CITY MANAGER TO EXECUTE ALL }
NECESSARY DOCUMENTS TO COMPLETE THE }
TRANSACTION. }
}

WHEREAS, the City of Turlock owns five (5) residential properties that were purchased with the intent to rehabilitate the housing units, as necessary, to meet housing quality standards, and sell the properties either to qualified non-profit agencies to provide and sustain affordable housing units within the City of Turlock or to income-eligible first- time homebuyers; and

WHEREAS, one (1) of the five (5) residential units is currently occupied by income- eligible tenants, while the remaining four (4) units are vacant; and

WHEREAS, the property located at 570 Jason Drive, Turlock, California is a single- family home with four (4) bedrooms and two and one-half (2.5) bathrooms, is vacant, and does not require rehabilitation; and

WHEREAS, the City of Turlock will sell the property located at 570 Jason Drive, Turlock, California, to an income-eligible first-time homebuyer through a lottery process; and

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Turlock does hereby adopt a resolution approving the sale of property located at 570 Jason Drive, Turlock, California, Stanislaus County APN 050-036-008, to an income-eligible first-time homebuyer through a lottery process and authorizing the Interim City Manager to execute all necessary documents to complete the transaction.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Turlock this 26th day of August 2025, by the following vote:

AYES:

NOES:

NOT PARTICIPATING:

ABSENT:

ATTEST:

Resolution No. 2025-

__________________________
Nichole Fiez, City Clerk,
City of Turlock, County of Stanislaus,
State of California

BEFORE THE CITY COUNCIL OF THE CITY OF TURLOCK

IN THE MATTER OF APPROVING THE SALE OF }
PROPERTY LOCATED AT 1827 SHADOW PARK }
DRIVE, TURLOCK, CALIFORNIA, STANISLAUS } RESOLUTION NO. 2025- COUNTY APN 088-015-057, TO AN INCOME- }
ELIGILBLE FIRST-TIME HOMEBUYER }
THROUGH A LOTTERY PROCESS AND }
AUTHRIZING THE INTERIM CITY MANAGER TO }
EXECUTE ALL NECESSARY DOCUMENTS TO }
COMPLETE THE TRANSACTION. }
}

WHEREAS, the City of Turlock owns five (5) residential properties that were purchased with the intent to rehabilitate the housing units, as necessary, to meet housing quality standards, and sell the properties either to qualified non-profit agencies to provide and sustain affordable housing units within the City of Turlock or to income-eligible first- time homebuyers; and

WHEREAS, one (1) of the five (5) residential units is currently occupied by income- eligible tenants, while the remaining four (4) units are vacant; and

WHEREAS, the property located at 1827 Shadow Park Drive, Turlock, California is a single-family home with three (3) bedrooms and two (2) bathrooms, is vacant, and does require rehabilitation; and

WHEREAS, the City of Turlock will sell the property located at 1827 Shadow Park Drive, Turlock California, to an income-eligible first-time homebuyer through a lottery process; and

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Turlock does hereby adopt a resolution approving the sale of property located at 1827 Shadow Park Drive, Turlock, California, Stanislaus County APN 088-015-057, to an income- eligible first-time homebuyer through a lottery process, and authorizing the Interim City Manager to execute all necessary documents to complete the transaction.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Turlock this 26th day of August, 2025, by the following vote:

AYES:

NOES:

NOT PARTICIPATING:

ABSENT:

ATTEST:

Resolution No. 2025-

__________________________
Nichole Fiez, City Clerk,
City of Turlock, County of Stanislaus,
State of California

BEFORE THE CITY COUNCIL OF THE CITY OF TURLOCK

IN THE MATTER OF APPROVING THE SALE OF }
PROPERTY LOCATED AT 2065 CODY COURT, }
TURLOCK, CALIFORNIA, STANISLAUS COUNTY } RESOLUTION NO. 2025- APN 089-004-012, TO AN INCOME-ELIGIBLE }
FIRST-TIME HOMEBUYER THROUGH A }
LOTTERY PROCESS, AND AUTHORIZING }
THE INTERIM CITY MANAGER TO EXECUTE }
ALL NECESSARY DOCUMENTS TO COMPLETE }
THE TRANSACTION. }
}

WHEREAS, the City of Turlock owns five (5) residential properties that were purchased with the intent to rehabilitate the housing units, as necessary, to meet housing quality standards, and sell the properties either to qualified non-profit agencies to provide and sustain affordable housing units within the City of Turlock or to income-eligible first- time homebuyers; and

WHEREAS, one (1) of the five (5) residential units is currently occupied by income- eligible tenants, while the remaining four (4) units are vacant; and

WHEREAS, the property located at 2065 Cody Court, Turlock, California is a single-family home with three (3) bedrooms and two (2) bathrooms, is vacant, and does require rehabilitation; and

WHEREAS, the City of Turlock will sell the property located at 2065 Cody Court, Turlock, California, to an income-eligible first-time homebuyer through a lottery process; and
.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Turlock does hereby adopt a resolution approving the sale of property located at 2065 Cody Court, Turlock, California, Stanislaus County APN 089-004-012, to an income-eligible first-time homebuyer through a lottery process, and authorizing the Interim City Manager to execute all necessary documents to complete the transaction.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Turlock this 26th day of August, 2025, by the following vote:

AYES:

NOES:

NOT PARTICIPATING:

ABSENT:

ATTEST:

Resolution No. 2025-

__________________________
Nichole Fiez, City Clerk,
City of Turlock, County of Stanislaus,
State of California

City Council Staff Report
August 26, 2025

From: Susan Borrego, Interim City Manager

Prepared by: Jennifer Figueroa, Housing Program Services Manager

Agendized by: Susan Borrego, Interim City Manager

1. ACTION RECOMMENDED:

Resolution: Adopting the updated Housing Rehabilitation Program Policies and Procedures Manual for the Housing Program Services Division.

2. DISCUSSION OF ISSUE:

The Housing Division must draft and update various policies and procedures for all housing programs to ensure compliance with the requirements of U.S. Department of Housing and Urban Development (HUD) and California Department of Housing and Community Development (HCD).

The Housing Division administers a Housing Rehabilitation Program designed to expand the supply of decent, safe, sanitary, and affordable housing; to correct health and safety hazards in deteriorating housing and extend the useful life of existing housing units for income eligible individuals and families.

Staff have reviewed the existing Housing Rehabilitation Program policies and procedures and recommend the following policy revisions:

• Update the forgivable loan from current maximum of $20,000 to the first $40,000 of rehabilitation costs. This creates additional relief to the low- and moderate- income homeowner.

• Removed the amortized loan for owner-occupied rehabilitation. Still available for owner-investor and mixed-use tenant occupied at 3% interest for 20 years.

• Update the deferred loan terms from 2% interest for 20 years to 0% interest for the first 10 years, followed by 2% interest for the remining 10 years for any amount over the first $40,000 in costs, with a balloon payment due at the end of the 20 years. This incentivizes the home owner to pay down their loan in the first 10 years, resulting in a lower balloon payment.

• Update from eligible contractor bids must be within 10% of the Rehabilitation Specialist/Inspector’s estimate to contract will be awarded to the lowest responsible and responsive bid.

• Add that in the event that a property owner does not want to move forward with the lowest bid, they can submit, in writing why they do not want to proceed with the

Agenda Staff Report
August 26, 2025

lowest bid within 10 business days. If reason is accepted by the Housing Program Manager, the next lowest responsible and responsive bid will be chosen.

• Update contractor billing from contractor billings when 25%, 50% and 75% of the work is completed to billing monthly for work completed. Rehabilitation Specialist/Inspector will still verify all work being billed was completed and 10% will be held out of each payment for the final payment to be paid one all work has been completed and accepted. For small jobs, it can be difficult for contractors to bill in these increments when the project is only 30-45 days long, as most projects are.

This allows the contractor and staff to streamline the billing.

• Under Contractor requirements, add the following verbiage:
“Removal from the eligible contractor’s list will occur when:
6) Contractor has received two (2) customer complaints or has had issues documented on two (2) separate jobs, as identified by the Housing Rehabilitation Specialist/Inspector.
a. Upon receiving the first customer complaint or upon a report from the Housing Rehab Specialist/Inspector, Housing Division staff will meet with the contractor to review and discuss reported issues.

Following the meeting, a formal letter will be issued to the contractor summarizing the discussion. The letter will also state that the contractor is being placed on probation for the duration of the next job that they are awarded and that any further complaints or identified issues during the probationary period will result in the contractor being removed from the eligible list for a period of one (1) year.”

• Updated the maximum loan amount for single-family homes, except for mobile homes, to $80,000 per unit. May go up to Combined Loan-to-Value (CLTV) ratio for HOME funding and on a case-by-case basis.

• Removed reverse mortgages from program.

• Add section for rehabilitation of Mobile Homes using Community Development Block Grant (CDBG) funding up to a $30,000 grant with the following language:
o “The project will not be considered if the cost of the rehabilitation exceeds 75% of the current estimated value of the property as determined by an appraisal/Housing staff.
o If additional health and safety repairs are discovered after the project commences that will exceed $30,000, staff may bring a recommendation forward on a case-by-case basis to the Loan Committee for an exception.”

• Add Permanent Local Housing Allocation (PLHA) requirements as this is a new funding source to be utilized for owner-occupied rehabilitations.

• Combine Loan Terms and Conditions section with Loan Types for ease of use to determine various types of loans.

Agenda Staff Report
August 26, 2025

• Various minor updates to spelling and grammar, add verbiage for clarification, and remove irrelevant language.

• Various edits as recommended by Housing Attorney.

The recommend Housing Rehabilitation Policy and Procedure is included as Attachment B, with all proposed updates shows in track changes for ease of review.

3. BASIS FOR RECOMMENDATION:

The Division reviews policies and procedures on a regular basis to increase efficiency and make the programs more viable for the population served.

4. FISCAL IMPACT / BUDGET AMENDMENT:

There is no fiscal impact.

5. STAFF RECOMMENDATION:

Recommends approval

6. CITY MANAGER’S COMMENTS:

Recommends approval

8. ENVIRONMENTAL DETERMINATION:

N/A

9. ALTERNATIVES:

Council could choose not to adopt the recommended updates to the Housing Rehabilitation Policies and Procedures for the Housing Division. This alternative is not recommended as the proposed updates will make the program more viable for the population the Housing Division serves and streamlines processes, creating more efficiencies.

10. ATTACHMENTS:

a. Housing Rehab P&P Resolution
b. Housing Rehab Policies and Procedures – adopted 06.11.2024-Aug 2025 update

BEFORE THE CITY COUNCIL OF THE CITY OF TURLOCK

IN THE MATTER OF ADOPTINGTHE UPDATED }
HOUSING REHABILITATION PROGRAM } RESOLUTION NO. 2025- POLICIES AND PROCEDURES MANUAL FOR }
THE HOUSING PROGRAM SERVICES DIVISION. }
}

WHEREAS, the City of Turlock receives various state and federal funds through the U. S. Department of Housing and Urban Development (HUD) and the California Department of Housing and Community Development (HCD); and

WHEREAS, HUD and HCD require jurisdictions to have specific policies and procedures in order to receive funding; and

WHEREAS, the Housing Division administers a Housing Rehabilitation Program; and

WHEREAS, the Housing Division reviewed existing policies and procedures and recommends the following policy revisions:

• Update the forgivable loan from current maximum of $20,000 to the first $40,000 of the rehabilitation costs;
• Remove the amortized loan for owner-occupied rehabilitation. Still available for owner-investor and mixed-use tenant occupied at 3% interest for 20 years;
• Update the deferred loan terms from 2% for 20 years to 0% interest for the first 10 years, followed by 2% interest for the remaining 10 years for any amount over the first $40,000 in costs;
• Update verbiage that eligible contractor bids must be within 10%of the Rehabilitation Specialist/Inspector’s estimate to contract will be awarded to the lowest responsible and responsive bid;
• Add verbiage that states that in the event that a property owner does not want to move forward with the lowest bid, they can submit, in writing, why they do not want to proceed with the lowest bid within 10 business days. If reason is accepted by the Housing Program Manager, the next lowest responsible and responsive bid will be chosen;
• Update billing from being billed when 25%, 50% and 75% of the job is completed to billing monthly as work is completed.
• Add verbiage under Removal from the contractor’s list will occur when:
“6) Contractor has received two (2) customer complaints or has had issues document on two (2) separate jobs, as identified by the Housing Rehabilitation Specialist/Inspector.
a. Upon receiving the first customer complaint or upon a report from the Housing Rehab Specialist/Inspector, Housing Division staff will meet with the contractor to review and discuss reported issues. Following

Resolution No. 2025-

the meeting, a formal letter will be issued to the contractor summarizing the discussion. The letter will also state that the contractor is being placed on probation for the duration of the next jobs that they are awarded and that any further complaints or identified issues during the probationary period will result in the contractor being removed from the eligible list for a period of one (1) year.”
• Updated the maximum loan amount for single-family homes, except for mobile homes, to $80,000 per unit. May go up to Combined Loan-to-Value (CLTV) ratio for HOME funding and on a case-by-case basis. • Removed Reverse Mortgages from program.
• Add section for rehabilitation of mobile homes using Community Development Block Grant (CDBG) funding up to a $30,000 grant with the following language:
o “The project will not be considered if the cost of the rehabilitation exceeds 75% of the current estimated value of the property as determined by an appraisal/Housing staff;
o If additional health and safety repairs are discovered after the project commences that will exceed $30,000, staff may bring a
recommendation forward on a case-by-case basis to the Loan Committee for an exception”;
• Add Permanent Local Housing Allocation (PLHA) as new funding source; • Combine Loan Terms and Conditions section with Loan Types section; • Various minor updates to spelling and grammar, add verbiage for clarification, and removing irrelevant language; and
• Various edits recommended by Housing Attorney.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Turlock does hereby adopt a resolution adopting the updated Housing Rehabilitation Program Policies and Procedures Manual for the Housing Program Services Division.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Turlock this 26rd day of August, 2025, by the following vote:

AYES:

NOES:

NOT PARTICIPATING:

ABSENT:

ATTEST:

__________________________
Nichole Fiez, City Clerk,
City of Turlock, County of Stanislaus,

Resolution No. 2025-

State of California

Exhibit A
Attachment B

Housing Rehabilitation Program

Policies and Procedures Manual

City of Turlock
Housing Program Services
156 South Broadway, Suite 140, Turlock CA 95380
(209) 668-5610, Fax (209) 668-5120, TDD 1 (800) 735-2929 www.cityofturlock.org

Approved by City Council on June 11, 2024 by resolution 2024-087.

Supersedes previous policies

These Policies and Procedures supersede any previously adopted Policies. These policies and procedures are subject to change in accordance with revisions made by the State of California and or Housing and Urban Development.

Table of Contents i
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

Table of Contents

Page No.

Introduction ..................................................................................................................... iv

1. Overview

1-A. Purpose of Manual .......................................................................................... 1 1-B. Program Summary .......................................................................................... 1 1-C. General Definitions .......................................................................................... 1

2. Program Eligibility Requirements

2-A. Eligible Property Requirements ....................................................................... 66 2-B. Occupancy Requirements ............................................................................... 66 2-C. Income Eligibility and Verification .................................................................... 77

3. Rehabilitation Work

3-A. Rehabilitation Standards ................................................................................. 1110 3-B. Eligible Rehabilitation Work ............................................................................ 1210 3-C. Ineligible Rehabilitation Work .......................................................................... 1413 3-D. Eligible Related Expenses .............................................................................. 1413 3-E. Contractor Requirements ................................................................................ 1514 3-F. Owner Builder ................................................................................................. 1715

4. Underwriting Requirements

4-A. Overview ......................................................................................................... 1716 4-B. Combined Loan-to-Value (CLTV) Limits ......................................................... 1716 4-C. Loan Funding Limits ........................................................................................ 1716 4-D Maximum Loan Amount .................................................................................. 17 4-E. Borrower Income Verification ......................................................................... 1917 4-F. Tenant Income Verification ............................................................................. 1917 4-G Income of Co-Borrower ................................................................................... 1917 4-H. Borrower and Tenant Assets ........................................................................... 1917 4-I. Borrower Documentation ................................................................................ 1918 4-J. Verification of Ownership Status ..................................................................... 1918 4-K. Lien Positions .................................................................................................. 2018 4-L. Credit Criteria .................................................................................................. 2018 4-M. Loan Documentation ....................................................................................... 2019 4-N. Loan Types .................................................................................................... 2119 4-O. Terms and Conditions ..................................................................................... 2421 4-P. Repayment ...................................................................................................... 2825 4-Q. Assumability and Transfer of Interest .............................................................. 3026 4-R. Delinquencies .................................................................................................. 26 4-S. Affordability Period .......................................................................................... 3127

Table of Contents ii
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

5. Energy Efficiency Program

5-A. Overview ......................................................................................................... 3329 5-B. Procedures ...................................................................................................... 3329

6. Forgivable Loan Program

6-A. Overview ......................................................................................................... 3531 6-B. Procedures ...................................................................................................... 3531

7. Reverse Mortgage

7-A. Overview ......................................................................................................... 3733 7-B. Procedure ........................................................................................................ 31

8. CalHome Secondary Financing with Rehabilitation Program 8-A. Overview ......................................................................................................... 32 8-B. Procedures ...................................................................................................... 3834

9. Application and Delivery Process

9-A. Overview ......................................................................................................... 34 9-B. Procedure for all Loans .................................................................................. 34 9-C. Loan Committee .............................................................................................. 42 9-D. Applicant Waiting List ...................................................................................... 42

10. Loan Servicing

10-A. Overview ......................................................................................................... 43 10-B. Payment of Property Taxes and Insurance ..................................................... 43 10-C. Owner-Occupancy Verification ........................................................................ 43 10-D. Tenant-Occupancy Verification ....................................................................... 43 10-E. Required Noticing and Restrictions on Any Changes of Title or Occupancy .. 44 10-F. Subordination .................................................................................................. 45 10-G. Demand/Pay-Off ............................................................................................. 45 10-H. Request for Notice of Default .......................................................................... 45 10-I. Foreclosure by Senior Lien Holder .................................................................. 46 10-J. Recapture Provision ....................................................................................... 46 10-K. Foreclosure by City ......................................................................................... 47 10-L. Use of Third Party Agent ................................................................................. 48 10-M. First Mortgage Underwriting Requirements ................................................... 48 10-N. Cash Out of Escrow ....................................................................................... 49 10-O. Title Insurance ................................................................................................ 49 10-P. Hazard Insurance ........................................................................................... 49

11. Federal Regulatory Provisions

11-A. Conflict of Interest ........................................................................................... 50 11-B. Fair Housing and Non-Discrimination ............................................................. 50 11-C. Relocation of Displaced Tenants .................................................................... 51 11-D. Consistency ..................................................................................................... 51

Table of Contents iii
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

11-E Environmental Review .................................................................................... 51 11-F. Matching .......................................................................................................... 51 11-G. Program Income and Reuse Account ............................................................. 51

12. Exhibits

12-A. 24 CFR Part 5 Annual Income Inclusions and Exclusions…………………... . 53 12-B. Income Limits -Area Median Income Limits………………………………….… 53 12-C. Rehab Specifications Manual “A Guide to Rehabilitation Standards” ……… . 53 12-D. Summary of General Program Guidelines…………………………………… .... 53

Introduction iv
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

Introduction

This Manual sets forth policies and procedures for the City of Turlock’s Housing Rehabilitation Program (hereinafter “Program”). The Program is designed to improve the quality of life of families by providing low interest rate loans and grants to repair substandard and deteriorating homes owned or rented by income eligible families. This will help expand and preserve affordable, safe and habitable dwelling units for families in Turlock. This program is designed to expand the supply of decent, safe, sanitary, and affordable housing; to correct health and safety hazards in deteriorating housing and extend the useful life of existing housing units for income eligible individuals and families.

The Program is a partnership between the City of Turlock (hereinafter “City”), State and Federal Governments to help maintain and upgrade the housing stock within the City, particularly into older neighborhoods.

Funds for this program may come from various local, state, and federal sources including but not limited to: Community Development Block Grant (CDBG), Home Investment Partnership Program (HOME), Permanent Local Housing Allocation (PLHA) and CalHome.

The City will comply with all city, state, and federal regulations and guidelines. In the event that the City assisted applicant combines two or more City assistance programs/funding sources, the homeowner and the property shall meet the strictest underwriting criteria and guidelines of each program/funding source.

Use of funds is subject to change and shall be in accordance with the requirements of the State of California Department of Housing and Community Development Division, United States Department of Housing and Urban Development, and other laws and regulations governing the funding for these programs as such laws and regulations may be amended from time to time.

Any amendments or policy revisions thereto shall become effective during the term of these policies and procedures.

Rehabilitation Loan Program Address:

City of Turlock
Housing Program Services Division
156 South Broadway, Suite 140
Turlock, CA 95380

Telephone: (209) 668-5610
Fax: (209) 668-5120
TDD: (800) 735-2929 (Speech and hearing impaired only)
City of Turlock website: www.cityofturlock.org

Section 1 - Overview 1
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

1. Overview

1-A. Purpose of Manual

The purpose of the Policies and Procedures Manual is to describe the Program and set forth the roles of the City, the program applicants and borrowers. These Policies and Procedures contain the regulations, general requirements and processing procedures.

Funds available for this program may come from various local, state, and federal funding sources including but not limited to: Community Development Block Grant1 (CDBG), Home Investment Partnership Program2 (HOME), and CalHome3., and Permanent Local Housing Allocation4 (PLHA).

The City is continually searching for new funding sources to further affordable housing activities. The intent of the Program is to provide eligible homeowners and investors a funding opportunity, that would not otherwise be available, to rehabilitate substandard and deteriorating homes.

1-B. Program Summary

The City has established the Program to assist eligible homeowners and investors with the funding to rehabilitate their home or rental properties. The Program staff will assist the Borrower to ensure a successful and timely completion of the rehabilitation process.

To maximize the effectiveness of the Program as a vehicle for enhancing affordability, Borrowers may be eligible for deferred payment loans, fully amortized loans, forgivable loans and or grants.

1-C. General Definitions

As used in the Policies and Procedures and all program documents, unless context requires otherwise, the following words and terms have the meanings set forth below:

Affordable: In reference to housing costs, means that the financial obligation can be paid by the person or household, along with all other financial responsibilities of that person or household, without endangering the financial stability of the household.

1 Authorized under Title I of the Housing and Community Development Act of 1974, as amended. The regulations implementing the CDBG Program are found at 24 CFR Part 570. CDBG funds are administered by the United State Department of Housing and Urban Development (HUD).
2 Authorized under the HOME Investment Partnerships Act at title II of the Cranston-Gonzalez National Affordable Housing act, as amended, 42 U.S.C. 12701 et seq. The regulations implementing the Home Investment Partnerships (HOME) Program are found at 24 CFR Part 92. HOME funds are administered by the United State Department of Housing and Urban Development (HUD). 3 Authorized by and pursuant to Chapter 6 of Part 2 of Division 31 of Health and Safety Code, commencing with Section 50650 (“California Statutes”) and regulations found in Title 25 of the California Code of Regulations, Division 1, Chapter 7, Subchapter 9 commencing with Section 7715 (“CalHome Regulations”), all as amended and in effect from time to time. CalHome funds are administered by the State Department of Housing and Community Development. 4 Authorized by The California Senate Bill 2 (SB2), also known as the Building Homes and Jobs Act, Chapter 364, Statutes of 2017.

PLHA funds are administered by the State Department of Housing and Community Development (HCD).

Section 1 - Overview 2
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

AMI: Area Median Income, as established by HUD.

Amortized Loan: A loan payable over a certain time period which includes principal and interest payments.

Applicant:

Any person who applies for a Housing Rehabilitation loan under the Program.

Assisted unit: A unit rehabilitated with loan(s) and or grant(s) funded under this Program.

Borrower: The recipient who has or will receive financing for the rehabilitation of an eligible property.

Certification: A written statement of fact filed in connection with the Program and subject to penalties of perjury.

City:

The City of Turlock, California.

Code Violations: Infractions against the applicable codes referenced in the Housing Rehabilitation Standards.

Contractor: A general building contractor, licensed by the State of California.

Deferred Payment
Loan:

A loan in which no monthly installments are required. Full loan amount plus interest will be due and payable at the end of the specified loan termperiod.

Equity: The value of a unit(s) and lot(s) whereafter subtracting all claims or liens against the unit value.same shall be subtracted from the value.

First Mortgage: A mortgage which is in first lien position, taking priority over all other mortgages or deeds of trust. liens.

General Property
Improvements
(GPI):

Improvements other than code violations made to improve the visual quality of the unit.

Gross Income: The anticipated income of a person, or family or household for the 12-month period following the date of determination of income.

Household: All the persons who occupy a housing unit. The occupants may be a single family, one person living alone, two or more families living together, or any other group of related or unrelated persons who share living arrangements.

HUD: The United States Department of Housing and Urban
Development.

Section 1 - Overview 3
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

Interest: The fees associated with the borrowing of money.

Lien: A form of encumbrance against the property which provide security for the payment of a debt, discharge, or an obligation.

Examples: judgment liens, taxes, mortgage, deed of trust, mechanics liens.unpaid material supplier invoice and unpaid wages due an employee.

Low-Income: A family or household having an income equal to or less than the Section 8 Very Low-Income Limit (50% of the area median income) as established by HUD.

Low- and Moderate-
income (LMI):

A family or household having an income equal to or less than the Section 8 Low-income limit, (80% of the area median income) as established by HUD.

Manufactured
Housing Unit:

Manufactured housing unit, either on a permanent foundation or on an alternate foundation system, located on a rented space in a mobile home park, on leased land or on property owned by borrower (does not include mobile homes).

Maturity Date: The date upon which a mortgage loan comes due and payable in full in accordance with the regulations pertaining to the funding source(s) used.

Mixed-Use:

A property occupied by residential and non-residential uses such as a business and residents or tenant(s).

Moderate Income
Household:

Persons and families who are not lower income households and whose gross incomes do not exceed 120% of the area median income adjusted for household size in accordance with
adjustment factors adopted by HUD in establishing income limits for lower income families.

Middle Income: Persons and families whose gross income ranges from 81% to 120% of the area median income adjusted for household size in accordance with adjustment factors adopted by HUD in
establishing income limits for lower income families.

Mortgage: A deed of trust used to secure a lien on real property or, in the case of some manufactured housing, another security interest acceptable to the City and the State of California Department of Housing and Community Development.

Multi-Family units: Five or more residential units.

Non-Conforming
Residential Uses
and Structures:

Those residential uses and structures which are not permitted but exist in any given zone by reason of use, improper setback or improper lot size.

Section 1 - Overview 4
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

Owner-Builder: A home owner who is a licensed contractor performing work on his/her own property, as qualified by the Housing Rehabilitation Specialist.

Owner-Occupant: A family or individual, regardless of family ties, who occupies and owns a unit of residential property.

Owner-Occupied
Residence:

A housing unit intended and used for occupancy by the owner of the property.

Owner-Investor: A family or individual, regardless of family ties, who owns a unit or units of residential property and who rents these units to a tenant(s).

Ownership Interest: Any of the following interests in residential real property:
• Fee simple estate
• Joint tenancy
• Tenancy in common
Ownership does not include a remainder interest, a lease with or without an option to purchase or any interest acquired on the execution of the purchase contract.

Principal Residence: A property occupied by the Borrower as his primary residence.

Ratio:

Income/Expenses:

The percentage of annual gross income to housing expenses.

Ratio:

Monthly Housing
Expenses:

The maximum percentage of monthly gross income spent for housing.

Reconstruction: The rebuilding, on the same lot, of housing standing on a site at the time of project commitment. The number of housing units on the lot may not be decreased or increased as part of the reconstruction project, but the number of rooms per unit may be increased or decreased. (HUD 24 CFR Part 92.2)

Rehabilitation Costs: The total cost of repair, improvements and other costs to be incurred by the Borrower that are included in the loan and or grant.

Rehabilitation
Specifications
Manual:

The City of Turlock Housing Program Services Division Manual titled “A Guide to Rehabilitation Standards”, which identifies City codes and ordinances applicable to residential rehabilitation and other environmental deficiencies to be corrected during the rehabilitation process not identified in, or required by, City codes.

Second Mortgage: A mortgage that is junior or subordinate to a first mortgage.

Section 1 - Overview 5
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

Single-Family
Dwelling:

A one-to four-family residence, condominium unit, cooperative unit, combination of manufactured housing and lot, or
manufactured housing lot.

Sub-Contractor: Any licenseds trade contractor that is not the General Contractor, i.e. Electrical, Plumbing or Mechanical contractor.

Unit: A single owner-occupied or rental unit, providing complete, independent living facilities for one or more persons including permanent provisions of living, sleeping, eating, cooking and sanitation. Unit, as used in these policies, shall not include hotel or motel rooms, rooming and/or boardinghouses. Further, those single-family units that have been converted to house additional families or single persons may, on approval of the City staff, qualify as a unit. Also known as a dwelling unit.

Utilities: Refers to gas, electricity, water, sewage disposal, and refuse collection. Does not include telephone or cable.

Section 2 – Program Eligibility Requirements
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

6 2. Program Eligibility Requirements

2-A. Eligible Property Requirements

1. The applicants(s) must be the owner(s) of record of the property to be rehabilitated.

2. Property must be located in:

` a. City limits of Turlock excluding county pockets for CDBG, PLHA, and CalHOME funding. Within Consortium area of Stanislaus County for HOME funding.

b. Target area census tracts as designated by funding source requirements.

3. Property type must be:

a. Single-family housing; or

b. Condominium unit; or

c. A town home unit; or

d. Multi-family units; or

e. Mixed-use property.

1) CDBG funded: For structures containing non-residential and residential uses, program funds can be used only for the residential portion of the structure, except when conditions exist in the non-residential portion which will adversely affect the residential portion of the structure. In no case shall the commercial portion of the rehabilitation exceed 25% of the total amount of the loan or grant.

2) HOME, and PLHA funded: For structures containing non-residential and residential uses, program funds can be used only for the residential portion of the structure.

3) Other funding restrictionssources may apply.

f. Mobile Home

1) CDBG funded: Mobile homes must be part of the City’s permanent housing stock (24 CFR 570.202(a)(5). If the mobile home is located in a permitted mobile home park, it will be considered part of the City’s permanent housing stock and eligible for CDBG funding.

2-B. Occupancy Requirements

1. Eligible property must have the following occupancy characteristics:

Section 2 – Program Eligibility Requirements
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

7 a. The applicant(s) must be the primary occupant(s) of the property to be rehabilitated; or

b. If a rental property, occupied by income eligible tenants throughout the entire term of the loan or meet the affordability period; or

c. Vacant. Unit(s) will be required to be occupied by income eligible tenants throughout the entire term of the loan or meet the affordability period.

See section for “Affordability Period" information, page 3127.

2-C. Income Eligibility and Verification

1. Owner occupied:

To be eligible to receive funds, the Borrowers must be income eligible.

a. The City must verify a Borrower’s income in accordance with the following:

1) Borrowers must have an annual gross income equal to or less than 80% of the area median income as adjusted for household size. See Exhibit B for the Area Median Income (AMI) limits.

i. Income limits used to determine eligibility for CalHome and PLHA funding must be those published by the State of California Department of Housing and Community Development and available from the Administrator or the City.

ii. Income limits used to determine eligibility for HOME, CDBG, CDBG-R, and NSP funding must be those published by the U.S. Department of Housing and Urban Development and available from the City.

2) Household size is determined by counting all members of the household, regardless of age, who will be permanent residents in the home. The following household members are not counted to determine familyhousehold size for income limits purposes: foster children, unborn children and children being pursued for legal custody or adoption who are not currently living with the household. A child, who is subject to as shared-custody agreement in which the child resides with the household at least 50% of the time, can be counted.

3) Income from all adult household members 18 years of age or older shall be counted to determine household income eligibility. Household income will be used to determine loan eligibility.

b. The Borrower’s gross annual income must then be projected by the City over the upcoming 12-month period and judged to not exceed the applicable income limit. City shall determine annual gross income in accordance with the Code of Federal Regulations (CFR), Title 24, Part 5, Section 5.609(b) attached hereto as Exhibit A.

1) Income from assets is recognized as part of annual income under 24 CFR Part

5. City shall determine income from assets in accordance with 24 CFR 5.

Section 2 – Program Eligibility Requirements
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

8 2) Include as Borrowers, all persons who are on title to the property.

3) If documentation is provided by the Borrower that his or her current circumstances may be about to change, this information must be used in the projection of gross annual income.

4) The City shall determine the Borrower’s annual gross income by obtaining source documentation verifying income and asset inclusions in accordance with Part 5 Income Inclusions as stated in the Code of Federal Regulations Statement from 24 CFR 5.609(b)..

i For self-employed borrowers, source documentation shall also include but not necessarily be limited to:

(1) 3 years federal tax returns. (A minimum of the two most recent years must show income as self-employed)

(2) A profit and loss statement prepared by an accountant or bookkeeper.

The City reserves the right to request an audited Profit and Loss statement by a Certified Accountant/Bookkeeper.

ii. For Borrower’s who are employees, source documentation shall also include but not necessarily be limited to:

(1) 3 years federal tax returns. If the Borrower has not yet filed his/her Federal income tax return for the preceding year, the Borrower will be required to provide W-2's and 1099's for the year in question and provide proof that taxes were filed, once filed. If Borrower is exempt, they will provide an exemption letter from the IRS.

2. Investor and Non-Profit Owned properties

To be eligible to receive funds, the rental unit(s) must be occupied by income eligible tenants. Tenant occupied properties are Nnot eligible for the CalHome Secondary Financing with Rehabilitation Program.

a. The City must verify a Tenant’s Borrower’s income in accordance with the following:

1) Tenant must have an annual gross income equal to or less than 80% of the area median income as adjusted for household size. The most current year Area Median Income (AMI) limits for Stanislaus County as established by HUD shall be used.

i. Income limits used to determine eligibility for CalHome and PLHA funding must be those published by the State of California Department of Housing and Community Development and available from the Administrator or the City.

ii. Income limits used to determine eligibility for HOME, CDBG, CDBG-R, and NSP funding must be those published by the U.S. Department of Housing and Urban Development and available from the City.

Section 2 – Program Eligibility Requirements
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

9 2) Household size is determined by counting all members of the household, regardless of age, who will be permanent residents in the home. The following household members are not counted to determine householdfamily size for income limits purposes: foster children, unborn children and children being pursued for legal custody or adoption who are not currently living with the household. A child, who is subject to as shared-custody agreement in which the child resides with the household at least 50% of the time, can be counted.

3) Income from all adult household members 18 years of age or older shall be counted to determine household income eligibility. Income of borrowers will be used to determine loan eligibility.

b. The Tenant’s gross annual income must then be projected by the City over the upcoming 12-month period and judged to not exceed the applicable income limit. City shall determine annual gross income in accordance with the Code of Federal Regulations (CFR), Title 24, Part 5, Section 5.609(b) attached hereto as Exhibit A.

1) Income from assets is recognized as part of annual income under 24 CFR Part

5. City shall determine income from assets in accordance with 24 CFR 5.

2) Include as Borrowers, all persons who are on title to the property.

3) If documentation is provided by the Tenant that his or her current circumstances may be about to change, this information must be used in the projection of gross annual income.

4) The City shall determine the Tenant’s annual gross income by obtaining source documentation verifying income and asset inclusions listed in 24 CFR Part 5 income inclusions as stated in the Code of Federal Regulations Statement from 24 CFR 5.609 (b)..

i. For self-employed tenantsborrowers, source documentation shall also include but not necessarily be limited to:

(1) 3 years federal tax returns and proof of filing. (A minimum of the two most recent years must show income as self-employed)

(2) A profit and loss statement prepared by an accountant or bookkeeper.

The City reserves the right to request an audited Profit and Loss statement by a Certified Accountant/Bookkeeper.

ii. For tenant’sBorrower’s who are employees, source documentation shall also include but not necessarily be limited to:

(1) 3 years federal tax returns. If the Borrower has not yet filed his/her Federal income tax return for the preceding year, the Borrower will be required to provide W-2's and 1099's for the year in question.

3. If the Investor rental unit is vacant., Rrent limitations will be placed on each assisted unit. See Tenant Occupancy Verification on page 5045.

Section 2 – Program Eligibility Requirements
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

10

Section 4 – Underwriting Requirements
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

11 3. Rehabilitation Work
3-A. Rehabilitation Standards

All improvements to residential properties, including the residential portion of a mixed- use project, in the City shall comply with the applicable standards set forth in all appropriate City statutes, codes, and ordinances as well as the Housing Program Services Division Rehabilitation Standards, “A Guide to Rehabilitation Standards” (see Exhibit C) which relate to the use, maintenance, facilities, and occupancy of residence (dwellings), including, but not limited to, the following most recently adopted codes and ordinances:

The following standards shall be utilized to determine the scope of rehabilitation projects:

1. The Housing Quality Standards at 24 CFR 982.401 and 24 CFR Part 574, B574.310 (b), B882.404 (c) (3): and CPD-94-05.

2. The lead-based paint regulations at 24 CFR Part 35 and as amended thereafter.

3. The latest editions of the following codes and or other codes as adopted by the City but not limited to:

a. Uniform Housing Code

b. National Electric Code

c. Uniform Building Code

d. Uniform Mechanical Code

e. Uniform Plumbing Code

f. California Historical Building Code

g. California Building Code

Note: For CDBG and PLHA funded projects, Eexisting conditions that are not included in the scope of work for a project are not required exempt from complying with the current editions of the codes referenced in section 3a-3g above, as long as there is not health and safety risks, or existing code violations. to meet current editions of the codes referenced in 4a-f above, provided no threat to health and safety or code violations exists.

For HOME funded projects, all of the above codes and all property standards as identified in 24 CFR 92.251 must be met AND all major systems, such as structural support, roofing, cladding, weatherproofing (e.g. windows, doors, siding, gutters), plumbing, electrical, heating, ventilation, and air conditioning, must have a remaining useful life of a minimum of 5 years.

Section 4 – Underwriting Requirements
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

12 3-B. Eligible Rehabilitation Work

A primary objective of this Program is the elimination of life- threatening hazards, improvement of energy efficiency and the correction of health and safety deficiencies.

1. The following items are eligible for purchase and installation, and repair or replacement:

a. Foundations, compaction tests as required and other structural building components

b. Roof sheathing, attic ventilation as required and new shingles

c. Electrical systems

d. Plumbing systems

e. HVAC system and required duct testing

f. Windows, interior and exterior doors

g. Interior and exterior paint

h. Kitchen, bathroom and kitchen fixtures, and equipment considered to be permanent fixtures

i. Energy conservation measures

j. Pest eradication measures

k. American with Disabilities Act aAccessibility accommodations

l. Utility connections (water/sewer connection from unit to street)

m. Drywall repairs and texture

n. Removal and replacement of floor coverings

o. Removal and backfill of unsafe or deteriorated swimming pools

p. Fire sprinkler system on all reconstruction or as required by California Building Code or Fire Code.

q. Removal and installation of gas and electric lines and meters.

r. Removal and installation of water and sewer lines.

s. Reconnection fees for any utilities.

Section 4 – Underwriting Requirements
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

13 2. Reconstruction involves demolishing an existing residential unit and rebuilding another on the same site. Often, reconstruction occurs because the cost of rehabilitation is prohibitive or is more than the cost to build a new unit. The Housing Rehabilitation Specialist will determine eligibility.

3. Costs to abate toxic materials such as the ones listed below are also eligible, if such materials are known or discovered to exist and pose a hazard to the occupants.

a. Asbestos.

b. Lead-based paint.

4. Garages, walkways, fences, and gates are eligible for the correction of health, safety, and building code violations. The program will not pay to correct illegal non-conforming violations of the zoning code. In addition, any of these types of violations must be brought into compliance with all applicable zoning laws prior to the execution of a rehabilitation loan. Owners will be responsible to remove all illegal structures prior to participating in the program.

Note: Conversion of a garage or other accessory structure to an accessory dwelling unit is not permitted if using CDBG funds.

5. Additions, alterations and enlargements to existing structures are eligible providing that the action accomplishes one of the following goals:

a. Elimination of severe overcrowding

b. Ensure safe and sanitary living conditions

c. Alleviate barriers to the mobility and accessibility of an elderly person or persons with disabilities

d. Facilitate the care and accommodation of a physically and/or mentally impaired occupant

6. General Property Improvements (GPI)

After the property has been rehabilitated to conform to the current Housing Uniform Code and/or applicable codes, additional loan money not to exceed Two Thousand Five Hundred Dollars ($2,500) may be used for, but not limited to, the following General Property Improvements (GPI):

a. Minor remodeling may be done in order to make a dwelling more functional or attractive

b. Repairs that are not code violations

c. To improve the visual quality of the neighborhood environment, landscaping may be provided. Where the quality or quantity of landscaping is below that generally found in the City, the following may be provided

Section 4 – Underwriting Requirements
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

14 1) A maximum of three (3) trees

2) A maximum of six (6) shrubs

3) Grass, ivy, or other ground cover

4) New wood fencing, (no wrought iron or brick material)

5) Additional items may be approved by the Housing Rehabilitation Specialist

7. Building Permits; As required by the City Building Department. Re-construction permits also include marking of property pins.

3-C. Ineligible Rehabilitation Work

The following costs are not eligible for a rehabilitation loan:

1. New construction or the finishing of such construction, unless otherwise stated in this text. (Expansion of the structure must be approved by the Housing Program Services Division Manager as per these policies and shall not be considered new construction)

2. Acquisition of land

3. Purchase, installation or repair of furnishings or fixtures (such as intercom systems, rugs, portable fans, etc.)

4. Fireplaces (other than repairs required to existing fireplace)

5. Barbecue pits

6. Bathhouses

7. Greenhouses

8. Swimming pools, saunas or spas, or their heating systems

9. Any costs deemed unnecessary by Housing Program Services Division Manager as per these policies

10. Decreasing or increasing window or door openings for aesthetics

11. Relocation of doors and windows for aesthetics

12. Alarm systems

13. Conversion of a garage or other accessory structure to an accessory dwelling unit is not permitted.

3-D. Eligible Related Expenses

Section 4 – Underwriting Requirements
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

15 1. In addition to the property rehabilitation work, the following expenses, which are related to the actual property rehabilitation work, are eligible for inclusion in the property rehabilitation loan or grant.

a. Permit fees.

b. Contracted architectural, design, and engineering services.

c. Contracted appraisal fee.

d. Preliminary title report and title insurance.

e. Recording and filing fees.

f. Credit reports.

g. Termite inspection reports.

h. Contingency allowance.

i. Soils reports.

j. Soils excavation in regard to engineered foundations or septic tanks.

k. Archaeological survey and excavation costs.

l. Relocation costs.

m. Private lender loan processing fees.

o. Probation of wills when required to obtain title insurance.

p. Lead-based paint detection, assessment and mitigation fees.

q. Storage container.

r. Portable bathrooms.

2. If an applicant withdraws from the program after any of the above-specified additional costs have been incurred by the City in connection with the property owner's rehabilitation application, the property owner shall reimburse the City for such incurred costs. This reimbursement requirement does not apply if the property owner's withdrawal from the program is based on disapproval of the loan application, or if the lowest bid received exceeds by at least 25% the cost estimate previously provided by the City, or if circumstances occur beyond the control of the applicant.

3-E. Contractor Requirements

The City Housing Program Services Division compiles and maintains an eligible contractors list. The City Housing Program Services Division shall review the list of

Section 4 – Underwriting Requirements
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

16 contractors on a regular basis and may remove contractors from the list for any reason.

Contractors must complete work in accordance with the Housing Program Services Rehabilitation Specifications Manual “A Guide to Rehabilitation Standards” (see Exhibit A). Inclusion of contractors on the City list does not represent a guarantee of the work performed by an contractor. To be eligible to be added to the list, the contractors must meet the following requirements:

a. License: The contractor must be a General Contractor, licensed by the California State Contractors Board (CSLB). The license must be current, active and be in good standing verified by the CSLB (http://www.cslb.ca.gov/).

b. Insurance: The Contractor must carry the following insurance:

1) Pursuant to Turlock Municipal Code Section 1-6-01.

2) Workers Compensation Insurance Policy.

3) Current Contractors Bond.

4) Other insurance as required by the City and or funding sources.

c. References:

Previous construction work references will be verified by Housing Rehabilitation Specialist.

d. Federal debarment and suspension: The contractor must not presently be debarred, proposed for debarment, suspended, declared ineligible, or voluntarily excluded from participation in the covered transaction or in any proposal submitted in connection with the covered transaction per the United States Department of Labor. The website, provided by the Office of Federal Contract Compliance Program (OFCCP) https://www.sam.gov/; provides information on parties that are excluded from receiving Federal contracts, certain subcontracts, and certain Federal financial and nonfinancial assistance and benefits, pursuant to the provisions of 31 U.S.C. 6101, note, E.O. 12549, E.O. 12689, 48 CFR 9.404, and each agency's codification of the Common Rule for Non-procurement suspension and debarment.

e. All new contractors will be limited to a maximum of one (1) City Housing Rehabilitation project until the Rehabilitation Specialist determines that the contractor has the capacity, (both financial and workmanship) to sustain two (2) City Housing Rehabilitation projects.

f. All City Housing Rehabilitation projects and contractors will be evaluated by the Rehabilitation Specialist to ensure an equal performance guideline by contractor.

g. Removal from contractors list:

Removal forom the eligibility eligible Contractor’s list will occur when:

1) No longer meets eligibility requirements, as listed above. 2) Contractor’s license is no longer current and active. 3) Poor workmanship-will not be able to bid on projects for a period of one (1) year.

Section 4 – Underwriting Requirements
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

17 4) Does not complete the work in the allotted timeframe- will not be able to bid on projects for a period of one (1) year..
5) Is placed on the Federal debarment and suspension list. 6) Contractor has received 2 customer complaints or has had issues documented on two (2) separate jobs, as identified by the Housing Rehabilitation Specialist/Inspector.
a. Upon receiving the first customer complaint or upon a report from the Housing Rehab Specialist/Inspector, Housing Division staff will meet with the contractor to review and discuss reported issues. Following the meeting, a formal letter will be issued to the contractor summarizing the discussion. The letter will also state that the contractor is being placed on probation for the duration of the next job that they are awarded and any further complaints or identified issues during the probationary period will result in the contractor being removed from the eligible list for a period of one (1) year.

h. Subcontractor's Licenses: All contractors must make sure that all subcontractors are properly licensed, including City business license. The Housing Division will require contractors to show proof of such licenses.

3-F. Owner Builder, Investor and Non-Profit Owned properties

In order to qualify, applicant must meet the contractor requirements in Section 3E as listed on page 14. All work performed by the Owner-Builder must meet the same requirements set forth above, including must meet basic industry standards. See the Housing Quality Standards at 24 CFR 982.401 and 24 CFR Part 574, B574.310 (b), B882.404 (c) (3): and CPD-94-05. Some exclusion may apply.

4. Underwriting Requirements
4-A. Overview

Program staff will review eligibility on the applicant based on the information that is provided and verified.

4-B. Combined Loan-to-Value (CLTV) Limits

The combined loan-to-value (CLTV) ratio, when combined with all other indebtedness to be secured by the property, shall not exceed 100% of the estimated after rehabilitation value. Under the CalHome Secondary Financing with Rehabilitation Program CLTV limits shall not exceed 105% of the after-rehabilitation value. See “Forgivable Loan Program” section for an exception to this requirement.

4-C. Loan/Grant Funding Limits

These limits include any City grant or loan not to exceed the after rehabilitation combined loan-to-value (CLTV) for CDBG, and PLHA. This limit does not include temporary relocation grants. Maximum loan amounts will also be limited by the individual funding source guidelines and limitations.

Section 4 – Underwriting Requirements
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

18 For HOME funded projects, the after-rehabilitation value of a home must not exceed 95% of the area’s median purchase price for a single family house, as determined by HUD.

Below are the City funding limits not to exceed funding source regulations. Exceptions to the City limits can be made by City Council within funding source guidelines.

1. 1. Owner-Occupied single family stick home:
a. $80,000 per housing unit for CDBG and PLHA funded projects. May go up to CLTV limits on a case-by-case basis.

b. Rehabilitation as needed not to exceed CLTV limits and funding source guidelines. Rehabilitation as needed not to exceed CLTV limits for HOME funded projects.
c. Reconstruction up to $150.00 per square foot (includes permits, fire sprinkler system) on a case-by-case basis based on health and safety.

a. CalHome funded: See FTHB Policies and Procedures for CalHome Secondary Financing with Rehabilitation Program per unit limits.

2. Owner-Investor and Non-Profit Owned properties (single or multi-family projects):
$75,000 per housing unit.

3. Owner-Builder (single family projects): $75,000 per housing unit.

4 Mixed-Use (Owner-occupied or Rental): $75,000 per housing unit.

a. CDBG funded: For structures containing non-residential and residential uses, program funds can be used only for the residential portion of the structure, except when conditions exist in the non-residential portion which will adversely affect the residential portion of the structure. In no case shall the commercial portion of the rehabilitation exceed 25% of the total amount of the loan or grant.

b. HOME funded: For structures containing non-residential and residential uses, program funds can be used only for the residential portion of the structure.

c. Other funded: Will follow funding source guidelines.

5. Mobile Homes: $30,000 per housing unit
a. The project will not be considered if the cost of rehabilitation exceeds 75% of the current estimated value of the property, as determined by an appraisal/Housing Financial Specialist

b. If additional Health and Safety repairs are discovered after the project commences that will exceed $30,000, staff may bring a recommendation forward on a case-by- case basis to the Loan Committee for an exception.

4-D. Maximum Loan/Grant Amount

Staff will determine the maximum amount of loan which applicant may receive to cover rehabilitation costs and still remain within the applicant’s ability to pay. Evaluation of the applicant’s complete file, will establish the limits of work to be accomplished and the

Section 4 – Underwriting Requirements
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

19 limits and conditions of the loans. Final recommendation will be presented to the Housing Program Services Division Loan Committee. The maximum loan amount cannot exceed the loan funding limits and the combined loan-to-value limits for all housing units with the exception of mobile homes. The maximum amount for mobile homes is $30,000.

City Manager has delegated authority to approve exceptions to increases in program loan and grant limits when additional repairs are needed to mitigate health and safety issues.

4-E. Borrower Income Verification

See section “Income Eligibility and Verification” on page 77.

4-F. Tenant Income Verification

See section “Income Eligibility and Verification” on page 77.

4-G. Income of Co-Borrower

1. If a co-Borrower will be on the title and or the deed of trust, his or her gross annual income must be included in determining income eligibility for the program.

2. The income of any other person expected to both live in the residence and be secondarily liable for the mortgage must be counted and verified as noted above.

3. Co-signers and co-mortgagors who do not intend to occupy the property are prohibited from participation in the program.

4-H. Borrower and Tenant Assets

This will apply to Borrowers and tenant’s assets.

1. All income from assets must be included in the calculations determining the Borrower’s or Tenant’s gross annual income.

2. When the cash value of all of a Borrower’s or Tenant’s assets exceeds $5,000 annual gross income shall include the greater of:

a. The actual amount of income, if any, derived from all household assets; or

b. 2.5% or the current HUD Passbook Rate, whichever is lower, of the cash value of all such assets.

c. As with income, the value of a Borrower’s or Tenant’s assets must be projected over the following 12-month period and judged to not exceed the applicable income limit.

4-I. Borrower Documentation

Section 4 – Underwriting Requirements
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

20 Borrower shall authorize City in writing to obtain any documentation from third party sources containing Borrower’s income, assets, liabilities and credit worthiness.

4-J. Verification of Ownership Status

1. The applicant(s) must be the owner(s) of record of the property to be rehabilitated.

Reverse mortgage loans for any properties, which are to receive assistance, are not eligible for the program.

2. The applicant(s), of owner-occupied units, must be the primary occupant(s) of the property to be rehabilitated.

4-K. Lien Positions

1. City’s lien will be either in first or second position. The In rare instances, exceptions can be made to allow the City to be in third position, with City cCouncil approval.

CalHome Secondary Financing with Rehabilitation Program loans will be placed in second and/or third position. Approval will be obtained by loan committee.

2. In the event that the City will make the exception to take a third position lien, the property must be owner occupied. Forgivable loans will not be permitted in third position.

3. The combined loan-to-value (CLTV) ratio, when combined with all other indebtedness to be secured by the property, shall not exceed 100% of the estimated after rehabilitation value. CalHome Secondary Financing with Rehabilitation Program loans will be permitted to have a combined loan-to-value (CLTV) ratio not to exceed 105%.

4. Lines of credit will need to show closed in order for the City to provide a loan.

4-L. Credit Criteria

1. A credit report will be obtained at time of application by the City for every person applying for a loan through the Program. For married couples, credit reports will be required of both spouses, to determine credit worthiness and household debt, even if one spouse is not on title.

For purposes of qualifying Borrower for City funding, credit worthiness criteria shall be:

a. No late payments 1 year prior tofrom date of applying.

b. No outstanding collections, judgments or liens.

d. Bankruptcy discharge with no additional collections must have been a minimum of three (3) years prior to the date of application.from date of discharge with no additional collections.

e. Foreclosure must have been a minimum of three (3) years prior to the date of application. from date of sale.

Section 4 – Underwriting Requirements
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

21 f. Owner-investor properties: Owner(s) must show ability to repay the loan without including contribution from rent payments.

4-M. Loan Documentation

1. All City loans shall be evidenced by the following documents and provisions.

a. Promissory Note(s) payable to City in the principal amount of the loan and stating the terms and rate of interest.

b. Deed of Trust(s) securing the Note; this deed shall be recorded and shall secure City’s financial interest in the property.

c. Other appropriate security instrument naming City as beneficiary.

d. Request for Notice of Default on superior loans.

e. Rental projects will require Covenants and Conditions regarding the occupancy and rent restrictions.

4-N. Loan and Grant Types, Terms and Conditions and Grant

Below is a list of the different loans and grant available to borrowers.

1. Amortized Loan

a. This loan is payable over the term of the loan which includes monthly principal and interest payments which results in loan being fully paid off at the end of the term without use of a balloon payment.

b. Eligibility

1) Available to all borrowers whose debt ratio will not exceed 38%. 2) Not eligible for CalHome Secondary Financing with Rehabilitation Program

2. Deferred Loan

a. This loan requires no monthly payments for the term of the loan.

b. Eligibility

1) A Deferred Loan is available to residential owner-occupied borrowers for single family units.
2) Available for CalHome Secondary Financing with Rehabilitation Program

31.. Forgivable Loan

a. a. For owner-occupied and mixed-use owner-occupied stick homes, Tthis loan requires no monthly payments for the term of the loan. The loan will be forgiven at a rate of 20 percent (20%) yearly as long as the owner continues to occupy the unit as the primary residence.For stick homes, the secured loan will be

Section 4 – Underwriting Requirements
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

22 comprised of the first $40,000 in rehabilitation costs, to be forgiven at a rate of thirty-three percent (33%) annually for 2 years and thirty-four percent (34%) for the final year as long as the owner continues to occupy the unit as their primary residence for a total of 3 years. Any amounts over $40,000 will be in a deferred loan.

1) For CDBG, CalHOME, PLHA funded projects, loans shall be repaid when the property title is transferred to a person other than the current owner(s), sold, rented or no longer occupied by the Borrower before the 5-year term for the forgivable loan. The loan may continue to the end of the term in the instance where the property transfer is to a spouse (as owner-occupied) or a disabled dependent who will reside in the property as their primary residence. Any other transfer is not permissible and the loan balance, at the time of transfer, will be due in full.

b. Eligibility

1) 1) A Deferred Forgivable Loan is available to
residential owner-occupied and mixed-use owner- occupied borrowers for single family units that are not considered a mobile home.

2.) Owner-occupied with reverse mortgages upon primary lender approval.

3.) Not available to owner-investor.

4.) Not available to mixed-use tenant occupied units.

25.) Not eligible for CalHome Secondary Financing with Rehabilitation Program

c. The balance of the pro-rata share of the loan shall be repaid at a rate of 2% interest for the remaining term balance when property title is transferred to a person other than the current owner(s), sold, rented or no longer occupied by the Borrower before the 5-year term. The loan may be continued to the end of the term in the instance where the property transfer is to a spouse (as owner-occupied) or a disabled dependent who will reside in the property as their primary residence. Any other transfer is not permissible and the loan balance, at time of transfer, will be due in full.

d. City loan lien position must be in either first or second position.

2. Grants

a. For mobile homes up to a maximum of $30,000 in rehabilitation costs.

b. Eligibility

1) Only available for mobile homes up to $30,000.

Section 4 – Underwriting Requirements
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

23 3. Amortized Loan

a. For owner-investor and mixed-use tenant occupied, loan is payable over a 20-year term at 3% simple interest.

b. Eligibility

1.) Not available to owner-occupied.

2.) Eligible for CalHOME Secondary Financing with Rehabilitation Program

c. Shall be repaid when property title is transferred to a person other than the Borrower(s), sold, rented, or no longer occupied by the Borrower before the loan has been paid in full. The loan may continue to the end of the term in the instance where the property transfer is to a spouse (as owner-occupied) or a disabled dependent who will reside in the property as their primary residence. Any other transfer is not permissible and the loan balance, at time of transfer, will be due in full.

d. City loans lien position will be either in first or second position.

4. Deferred Loan

a. For owner-occupied, this 20-year loan requires no monthly payments for the term of the loan at a simple interest rate of 0% for the first 10 years, followed by simple 2% simple interest for the remaining 10 years with the entire amount of the loan, plus accrued interest, due at loan maturity.

b. Eligibility

1.) Available to owner-occupied.

2.) Not available to owner-investor.

3.) Not available to mixed-use tenant occupied units.

4.) Available for CalHOME Secondary Financing with Rehabilitation Program.

c. Shall be repaid when property title is transferred to a person other than the Borrower(s), sold, rented or no longer occupied by the Borrower before the 20- year term. The loan may be continued to the end of the term in the instance that a property transfer is to a spouse (as owner-occupied) or a diabled dependent who will reside in the property as their primary residence. Any other transfer is not permissible and the loan balance, at time of transfer, will be due in full.

d. City loans lien position will be either in first or second position.

.

Commented [JF1]: Removed as option for owner-occupied.

Still available for owner-investor and mixed-used tenant occupied

Section 4 – Underwriting Requirements
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

24 45. Optional Temporary Relocation Grants

CDBG and HOME funds may be used for optional temporary relocation payments and assistance to persons who are temporarily relocated by a rehab activity that is not subject to the displaced persons requirements found at 24 CFR Part 570.606. The City makes every effort to not temporarily displace homeowners occupants during rehabilitation. However, in some instances, this may be unavoidable due to the scope of work. For example, if a unit will be without water for 24 hours during repairs, this would result in the homeowneroccupant having to temporarily reside elsewhere while repairs are completed. The temporary relocation grant is used in such instances for temporarily relocating occupants of properties that are to be rehabilitated. There is a maximum allowance of $1,000 per unit. In general, all reasonable costs associated with the provision of decent, safe and sanitary housing are eligible. Relocation grants are not included as part of the City per unit maximum loan amount(s).

Relocation expenses are the responsibility of the owner, but to alleviate this burden the City offers up to $1,000 to assist with relocation and/or storage costs. The Temporary Relocation grant is used to assist the owner with the associated costs. In the event that the owner is unable to pay for the out of pocket relocation expenses, the City can assist the owner by providing additional funds to the loan to cover these expenses. The combined loan-to-value limits apply to these funds.

a. Eligibility

1) Temporary Relocation Grants are available to owner occupied borrowers.

2) Not eligible for CalHome Secondary Financing with Rehabilitation Program Borrowers.

3) Not eligible for Investor or non-profit borrowers.

b. Assistance Guidelines:

1). The City will provide certain moving assistance to aid owner occupants who voluntarily apply for consideration for assistance under the Homeowner Rehabilitation Program. This may include removal and storage of furniture, packing expenses and/or moving and storage expense..

2) The City may provide temporary relocation assistance to aid owner occupants who voluntarily apply for consideration for assistance under the Homeowner Rehabilitation Program in such instances where the household is unable to remain in the home. Eligible expenses include a hotel or motel stay.

A temporary relocation grant is not a stand-alone activity and is considered a project cost. Additionally, relocation of occupants is not subject to the this does not enact Uniform Relocation Assistance and Real Property Acquisition Act or the California Relocation Assistance Law due to the nature of the program. Participation in the rehabilitation program is voluntary and does not result in displacement.

56. Other Program Funding

Section 4 – Underwriting Requirements
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

25 The City may receive supplemental funding including, but not limited to local, state and federal sources. Policies and procedures for the disbursement of such funds including, but not limited to, interest rates, loan terms, and conditions as established by the funding source will be adhered to by program staff.

4-O. Terms & Conditions

The following are the interest rates and conditions for the available funding. Loans shall be secured by a note and a deed of trust on the property. CalHome Secondary Financing with Rehabilitation Program will follow the FTHB Policies and Procedures term limits.

1. Amortized Loan

a. Owner-Occupied Twenty (20) years at zero percent (0%) (Includes Owner- occupied Owner-builder).

b. Owner-Investor Twenty (20) years at three percent (3%).

c. Mixed-use

1) Tenant occupied Twenty (20) years at three percent (3%).

2) Owner occupied Twenty (20) years at zero percent (0%).

d. Shall be repaid when the property title is transferred to a person other than the owner(s), sold, rented or no longer occupied by the applicant. Provided that when property title transfer is to a spouse (as owner-occupant) or disabled dependent who must reside at the home as the primary residence, then the loan may be continued through the end of the term. Any other transfer is not permissible and loan will be due in full. In the event that the heir is neither a spouse nor a disabled dependent, the heir will not be provided the opportunity to assume the loan. If the heir is a non-income eligible family, the balance of the loan is due and payable in full. If the heir intends to act as an owner-investor, the balance of the loan is due and payable in full. Other exceptions are subject to the review and approval of City council.

2. Deferred Loan

a. Owner-Occupied Twenty (20) years at two percent (2%) (Includes owner-builder, and Owner occupied mixed-use)

b. Owner-Investor not eligible.

c. Mixed-use.

1) Tenant occupied not eligible.

2) Owner occupied Twenty (20) years at zero percent (0%).

d. Shall be repaid when the property title is transferred to a person other than the owner(s), sold, rented or no longer occupied by the applicant. Provided that when Commented [JF2]: Section 4-O combined with section 4-N above

Section 4 – Underwriting Requirements
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

26 property title transfer is to a spouse (as owner-occupant) or disabled dependent who must reside at the home as the primary residence, then the loan may be continued through the end of the term. Any other transfer is not permissible and loan will be due in full. In the event that the heir is neither a spouse nor a disabled dependent, the heir will not be provided the opportunity to assume the loan. If the heir is a non-income eligible family, the balance of the loan is due and payable in full. If the heir intends to act as an owner-investor, the balance of the loan is due and payable in full. Other exceptions are subject to the review and approval of City council.

3. Forgivable Loan and Energy Efficiency Program

a. Owner-Occupied five (5) years at zero percent (0%) (Includes Owner-occupied Owner-builder).

b. Owner-Investor not eligible.

c. Mixed-use.

1) Tenant occupied units are not eligible.

2) Owner occupied five (5) years at zero percent (0%).

d. Shall be repaid when the property title is transferred to a person other than the owner(s), sold, rented or no longer occupied by the applicant.

e. The loan will be forgiven at a rate of twenty percent (20%) annually as long as the owner continues to occupy the unit as the primary residence. In the event that the borrower does not occupy the unit for the five (5) year term, the balance of the pro- rata share must be repaid at a rate of two percent (2%) interest for the remaining term balance.

f. City loans lien position will be either in first or second position.

g. limited to a maximum of $20,000.00.

4. Reverse Mortgage Forgivable Loan

a. Owner-Occupied five (5) years at zero percent (0%) (Includes Owner-occupied Owner-builder).

b. Owner-Investor not eligible.

c. Mixed-use.

1) Tenant occupied units are not eligible.

2) Owner occupied five (5) years at zero percent (0%).

d. Shall be repaid when the property title is transferred to a person other than the owner(s), sold, rented or no longer occupied by the applicant.

Section 4 – Underwriting Requirements
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

27 e. The loan will be forgiven at a rate of twenty percent (20%) annually as long as the owner continues to occupy the unit as the primary residence. In the event that the borrower does not occupy the unit for the five (5) year term, the balance of the pro- rata share must be repaid at a rate of two percent (2%) interest for the remaining term balance.

f. City loans lien position will be second position only.

g. limited to a maximum of $20,000.00.

56. Rental Units

a. Rent limitations will be placed on each assisted unit per 24 CFR 570.208(a)(3) to ensure affordable rents. The maximum rent cannot exceed the High HOME rent limits as established by HUD based on the number of bedrooms per unit. When units become vacant during the affordability period, subsequent tenants must be income-eligible and must be charged the applicable rent. HUD High HOME rent limits can be found at the HUD Exchange website at
https://www.hudexchange.info/programs/home/home-rent-limits/ or contact housing staff for the limits.

b. Funding source conditions for rental units.

1) CDBG.

i. Residential rental projects of 8 or more units assisted with CDBG funds shall be subject to Davis-Bacon prevailing wage requirements. Prevailing wage and labor regulations can be found at Davis Bacon Act (40 U.S.C., Chapter 3, Section 276a-276a-5), 24 CFR Part 70 (Use of volunteers on projects), 29 CFR Parts 1, 3, 5, 6 and 7 (Labor), 24 CFR 92.354 (HOME), and 24 CFR 570.603 (CDBG).

ii. The cCity will require the Borrower to make assisted units available for occupancy to low-moderate income (defined as 80% or below of the MAIAMI as adjusted for household size) tenants for the term of the loan or the affordability restrictions.

2) HOME.

i. Rental projects of 12 or more units assisted with HOME funds shall be subject to Davis-Bacon prevailing wage requirements. Prevailing wage and labor regulations can be found at Davis Bacon Act (40 U.S.C., Chapter 3, Section 276a-276a-5), 24 CFR Part 70 (Use of volunteers on projects), 29 CFR Parts 1, 3, 5, 6 and 7 (Labor), 24 CFR 92.354 (HOME), and 24 CFR 570.603 (CDBG).

ii. In projects with five or more HOME-assisted units, at least twenty percent (20%) of the HOME-assisted rental units must be occupied by families who have annual incomes that are fifty percent (50%) or less of median income.

Section 4 – Underwriting Requirements
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

28 These very-low-income tenants must occupy units with rents at or below the Low HOME Rental level (Project Rule). These income restrictions shall apply for the term of the affordability agreement and;

Ninety percent (90%) of the total families assisted through the rental program have incomes that do not exceed sixty percent (60%) of the area median income as adjusted for household size. The balance of rental units must assist tenants with incomes that do not exceed eighty percent (80%) of the area median income as adjusted for household size. This rule applies to all funds expended from each fiscal year allocation; it is not project specific (Program Targeting Rule). These income restrictions shall apply for the term of the agreement.

iii. Projects with fewer than five HOME-assisted units do not have to restrict any units to the Low HOME Rents or limit occupancy to tenants at fifty percent (50%) or below of the area median income.

iv. Properties must remain in standard condition throughout the affordability period. In order to verify compliance with property standards Aannual on- site inspections of City assisted units will be required.

v. Documentation will be required annually by the property owner.

Documentation includes information on tenants’ incomes, rents, and other HOME rental requirements during a project’s period of affordability.

vi. Affordability period. See “Affordability Period” on page 3127.

vii. Rent for units in a project assisted with HOME funds shall be as determined by the U.S. Department of Housing and Urban Development on an annual basis. Conditions covenants and restrictions will be placed against the property to assure affordability for a specified length of time based on the amount of HOME funds invested per unit shall be recorded against the property (affordability period). Such length of time shall be as defined at 24 CFR 92.252(e).

viii. HOME assisted properties must remain in standard condition throughout the affordability period requiring periodic on-site inspections.

ix. As required by the applicable regulatory or rent limitation agreement, all rental property owners shall submit to annual monitoring of affordability.

6. Mixed-use projects

a. Rental units of mixed-use projects follow the terms and conditions for Rental Units above.

b. Funding source conditions for mixed-use projects.

1) CDBG funded: For structures containing non-residential and residential uses, program funds can be used only for the residential portion of the structure, except when conditions exist in the non-residential portion which will adversely

Section 4 – Underwriting Requirements
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

29 affect the residential portion of the structure. In no case shall the commercial portion of the rehabilitation exceed 25% of the total amount of the loan or grant.

2) HOME funded: For structures containing non-residential and residential uses, program funds can be used only for the residential portion of the structure.

4-PO. Repayment

The following are the repayment options available: Cal Home Secondary Financing with Rehabilitation Program will follow the FTHB Policies and Procedures repayment guidelines.

1. Amortized and Deferred loans.

a. The loan principal and interest shall be due and payable upon:

1) Sale, transfer, rental, conveyance, vest or lease of the property.

2) Borrower’s failure to occupy the Property as Borrower’s principal residence (Borrower must certify occupancy annually).

3) The loan maturity date.

I. If it is determined by the Housing Program Services Division staff that repayment of the loan at maturity will cause a hardship to the Borrower, the Loan Committee may, at its option, elect to:

(1) Approve a one-time additional deferral period of up to 20 years in length at 0% additional interest, or;

(2) Convert the debt (principal and accrued interest) to a 15- year amortized loan at 0% additional interest.

Option is based on borrower qualifications and current guidelines.

4) Upon default under the City promissory note, deed of trust, covenants, or other recorded documents of record pertaining to the property.

5) Borrower’s cash-out refinance of any superior mortgages.

b. The City will provide deferred payment loans; the City may accept voluntary payments on the loan. Loan payments will be credited to the principal first and then to interest. The borrower may repay the loan balance at any time with no pre- payment penalty.

2. Forgivable loans

a. The loan principal and interest shall be due and payable upon:

1) Sale, transfer, rental, conveyance, vest or lease of the property within the term of the loan.

Section 4 – Underwriting Requirements
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

30 i. In the event that any of the above mentioned occur the remaining pro- rataoutstanding balance share of the loan will be due and payable immediately.

(1) Outstanding Pro-rata share loan balance will be reported to credit bureaus.

2) Borrower’s failure to occupy the Property as Borrower’s principal place of residence (Borrower must certify occupancy annually).

3) Upon default under the City promissory note, deed of trust, covenants, or other recorded documents of record pertaining to the property.

4) Borrower’s cash-out refinance of any superior mortgages.

4-PQ. Assumability and Transfer of Interest

1. Assumability:

a. Loans are not assumable.

2. Transfer of Interest Exceptions:

a. Loans do not have transfers of interest exception.

4-QR. Delinquencies

In cases of amortized loans and upon the end of the deferment term, where either loan payments or payoff has not been received the City staff will determine the necessary steps to cure the loan. 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 City may consider foreclosure. City’s staff will consider the following factors before initiating foreclosure:

1. Amortized and deferred loans

a. Can the loan be cured and can the rates and terms be adjusted to allow for affordable payments such that foreclosure is not necessary?

b. Can the Borrower refinance with a private lender and pay off the City?

c. Can the Borrower sell the property and pay off the City?

d. Does the balance warrant foreclosure? (If the balance is under $5,000, the expense to foreclose may not be worth pursuing.)

Section 4 – Underwriting Requirements
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

31 e. 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?

2. If the balance is substantial and all of the above factors have been considered, the City 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 City to prevent foreclosure (such as, funds to bring a delinquent loan current or pay off a Deferred Payment Loan).

3. At the end of thirty days, the City will 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 lien holders. The service will advise the City of all required documentation to initiate foreclosure and funds required from the owner to cancel foreclosure proceedings. The service will keep the City informed of the progress of the foreclosure proceedings.

4. When the process is completed, and the property has "reverted to the beneficiary" at the foreclosure sale, the City could sell the home themselves under a homebuyer program, use it for an affordable rental property, use it for transitional housing facility or other eligible use.

5. Foreclosures are subject to the review and approval of the City Council.

6. Any delinquencies over 30 days will be reported to the credit bureaus.

4-RS. Affordability Period

The minimum period of time properties are required to be affordable. Housing units that have been rehabilitated must remain the principal residence of the borrower for a minimum period as stipulated below. Homeowners will be required to submit certificates of occupancy and homeowner insurance verifications annually. The affordability time applies primarily to rental housing units. The period of affordability depends on the funding sources and the term of the funding.

The Affordability Period will be:

1. CDBG and CDBG-R will be the term of the loan or until satisfied.

2. HOME-See Recapture Provisions, Section 9-J

a. Owner-occupied will be the term of the loan or until satisfied.

b. Owner-investor will be the term of the loan or a minimum of 15 years if satisfied prior to the end of the term, whichever is longer. The length of time will be based on the amount of HOME funds invested per unit and restrictions assuring affordability shall be recorded against the property. Such length of time shall be as defined at 24 CFR 92.252(e).

Section 4 – Underwriting Requirements
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

32 c. Multi-use owner occupied will be the term of the loan or until satisfied. If multi-use owner occupied project contains a HOME assisted rental unit see Mmulti-use tenant occupied information below.

d. Multi-use tenant occupied will be the term of the loan or a minimum of 15 years if satisfied prior to the end of the term, whichever is longer. The length of time will be based on the amount of HOME funds invested per unit and restrictions assuring affordability shall be recorded against the property. Such length of time shall be as defined at 24 CFR 92.252(e).

3. CalHome funding will follow related regulations and guidance.

4. Other funding will follow related regulations and guidance.

Section 5 – Energy Efficiency Program
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

33 5. Energy Efficiency Program

5-A. Overview

The Community Development Block Grant (CDBG) funding provides an energy efficiency program for seniors, disabled and income eligible families through the upgrade of housing features such as windows and additional insulation which would provide greater energy savings for these residents on fixed and restricted incomes.

The City shall comply with the regulations and requirements of the grant.

5-B. Procedures

The program will follow all the procedures in these policies and procedures with the following exceptions:

1. Eligible applicants are limited to:

a. Income eligible: Applicants must be at or below low income. Low income is defined as a household having an income equal to or less than the Section 8 Very Low- Income Limit (50% of the area median income) as established by HUD. See Exhibit B for the Area Median Income (AMI) limits and;

b. Seniors (62 years and older). At least one person on title must be 62 years or older or;

c. Disabled. Proof of disability will be required.

2. Eligible units are limited to:

a. Single family owner-occupied units. Multi-use units are not eligible for this program.

3. Funding:

a. Grant amount cannot exceed $20,000. Families are only eligible to receive funding once even if the maximum limit was not received.

b. Funding can be combined with other rehabilitation program funding.

4. Rehabilitation Work:

a. Housing Rehabilitation Specialist must approve all items to verify energy conservation goal. Rehabilitation work will be limited to the following energy efficiency items:

1) Window replacement.

2) Whole house fans.

Section 5 – Energy Efficiency Program
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

34 3) Attic insulation to code.

4) New exterior pre-hung doors.

5) Weather stripping for existing exterior doors.

6) New HVAC system and required duct testing.

7) New roofs.

8) Solar panels.

9) Trees.

10) Xeriscape landscaping replacement.

11) Water saver toilets.

12) Low flow shower heads.

13) Other energy efficiency items may be eligible as approved by the Housing Rehabilitation Specialist.

5. Terms and Conditions

See “Terms and Conditions” on page 2421.

Section 6 – Forgivable Loan Program
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

35 6. Forgivable Loan Program

6-A. Overview

Loans are provided for rehabilitation work for emergency conditions that threaten public safety, health and safety improvements , remedy code violations and accessibility items for seniors, disabled and income eligible families.

6-B. Procedures

The program will follow all the procedures in this manual with the following exceptions:

1. Eligible applicants are limited to:

a. Income eligible: Applicants must be at or below 80% of the area median income as established by HUD.

b. Property loan debt in excess of current property value not to exceed 120% the combined loan-to-value (CLTV).

c. For applicants who have received a Reverse Mortgage, the property loan debt in excess of current property value not to exceed 120% the combined loan-to-value (CLTV).

2. Eligible units are limited to:

a. Single family owner-occupied units. (Includes manufacturedmobile homes).

3. Funding:

a. The Forgivable Loan amount cannot exceed $20,00040,000. Families are only eligible to receive the Forgivable Loan funding once, even if the maximum limit was not received.

b. A Fforgivable Loan funding can be combined with other rehabilitation programa deferred loan funding.

4. Rehabilitation Work:

a. Housing Rehabilitation Specialist must approve all items. Rehabilitation work will be limited to the following code violation and accessibility items:

1) Imminent health and safety items including but not limited to: electrical issues, leaking roof, mold remediation and dry rot repairs, heating and air conditioning repair and or replacement or new installation, plumbing issues, and hot water heater replacement and any work required to comply with the California Building Code.

2) ADA compliance items including but not limited to: grab bars, increasing door width for access, accessibility ramps, and shower and kitchen modifications.

Section 6 – Forgivable Loan Program
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

36 5. Terms and Conditions: See “Terms and Conditions” on page 2421.

Section 8 – CalHome Secondary Financing with Rehabilitation Program City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

37 7. Reverse Mortgage

7-A. Overview

Loans are provided for rehabilitation work for emergency conditions that threaten public safety, remedy code violation and accessibility items for seniors, disabled and income eligible families.

7-B. Procedures

The program will follow all the procedures in this manual with the following exceptions:

1. Eligible applicants are limited to:

a. Income eligible: Applicants must be at or below 80% of the area median income as established by HUD.

b. Property loan debt in excess of current property value not to exceed 120% the combined loan-to-value (CLTV).

c. For applicants who have received a Reverse Mortgage, the property loan debt in excess of current property value not to exceed 120% the combined loan-to-value (CLTV).

2. Eligible units are limited to:

a. Single family owner-occupied units. (Includes manufactured homes).

3. Funding:

a. The Forgivable Loan amount cannot exceed $20,000. Families are only eligible to receive the Forgivable Loan funding once, even if the maximum limit was not received.

b. Forgivable Loan funding can be combined with other rehabilitation program funding.

4. Rehabilitation Work:

a. Housing Rehabilitation Specialist must approve all items. Rehabilitation work will be limited to the following code violation and accessibility items:

1) Imminent health and safety items including but not limited to: electrical issues, leaking roof, heating and air conditioning repair and or replacement, plumbing issues, and hot water heater replacement.

2) ADA compliance items including but not limited to: grab bars, increasing door width for access, accessibility ramps, and shower and kitchen modifications.

5. Terms and Conditions: See “Terms and Conditions” on page 21.

Section 8 – CalHome Secondary Financing with Rehabilitation Program City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

38 87. CalHome Secondary Financing with Rehabilitation
Program

87-A. Overview

The CalHome Secondary Financing with Rehabilitation Program Loan is designed to assist new homeowners purchase a property that would, under the existing Secondary Financing Program, not pass basic housing quality standards. This program is only eligible for participants who are receiving CalHome Secondary Financing with assistance.

For CalHome participant eligibility see the First Time Homebuyer Secondary Financing Program (FTHB) Policies and Procedures. This section refers to the Rehabilitation component of the loan only.

87-B. Procedures

Eligible properties will be rehabilitated to correct all required health and safety hazards and existing damage in order to meet basic housing quality standards.

The program will follow all the procedures in this manual with the following exceptions:

1. Eligible applicants are limited to:

a. Income eligible: Applicants must be at or below 80% of the area median income as established by HUD.

2. Eligible units are limited to:

a. Single-family housing; or

b. Condominium unit; or

c. A town home unit; or

e. Multi-family units.

3. Funding:

a. Maximum rehabilitation funding limits will apply.

b. Loan funding cannot be combined with other City program funding.

4. Rehabilitation Work:

a. Housing Rehabilitation Specialist must approve all items.

1) City shall comply with the applicable standards set forth in all appropriate City statutes, codes, and ordinances as well as the Housing Program Services

Section 8 – CalHome Secondary Financing with Rehabilitation Program City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

39 Division Rehabilitation Standards, “A Guide to Rehabilitation Standards” (see Exhibit C) which relate to the use, maintenance, facilities, and occupancy of residence (dwellings), including, but not limited to, the most recently adopted codes and ordinances.

2) Rehabilitation will include correction to any health and safety hazards, existing damage and or any necessary items needed to prepare for occupancy. At a minimum the property must meet the Section 8 Housing Quality Standards, applicable building codes, zoning ordinances and cost-effective energy conservation standards.

5. Resale of the property:

a. No limitations will be placed for resale.

Section 10 – Loan Servicing
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

40 98. APPLICATION and DELIVERY PROCESS

98-A. Overview

Program staff works with applicants to ensure a smooth process in order to make certain that basic housing quality standards are met. The following procedures are a basic guide to the rehabilitation process.

98-B. Procedure for all Loans

1. Initial Property Owner Contact:

Contact with property owners is made as a result of program outreach and publicity, including mailings, press releases, public meetings, neighborhood canvassing, newspaper advertisements, participation in community events, and referrals from community organizations.

Initial interview is conducted with property owner concerning program objectives, eligibility requirements for the property and applicant, eligible rehabilitation work, and terms and conditions under which loans are made. Applicant shall provide any other data which may be required to complete the application.

2. Review of Application:

Upon receipt of an application, program staff determines eligibility status. The BorrowerApplicant must complete and sign the appropriate Program required documentation. Each application will be given a status of the following;

a. Application processed:

1) Application complete.

2) Applicant/property meets eligibility requirements pertaining to type of loan requested.

3) Program funds and staff time available.

b. Application put on hold:

1) Application incomplete. If an application is determined to be incomplete, the applicant will have a maximum of 15 business days to provide the missing documentation. If this timeframe is not met the application will be rejected.

2) Lack of program funding.

3) Backlog of previous applications.

c. Application rejected:

1) Owner applicant over income.

Section 10 – Loan Servicing
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

41 2) Applicant not on title.

3) Condition of structure non-repairable within available resources.

4) Application eligibility requirements not met.

In the event that an application is rejected, the applicant will be informed in writing.

The applicant may correct or exhibit a valid explanation of these disqualifications and resubmit the application. Upon resubmission, the application will be reevaluated. Further, an applicant whose loan application has been denied may, at their discretion, appeal such determination directly to the Housing Program Services Division Manager.

3. Verification:

Program staff verifies title, insurance, employment, income, assets, credit information and or any other verification necessary to determine eligibility of the applicant.

4. Property Appraisal:

Program Staff determines value of property by obtaining comparable sales information from real estate agents, certified appraisers or other methods it deems appropriate. If property is questionable in value, program staff will obtain a written appraisal of the property market value from a licensed appraiser.

In the event that an appraisal is required, an “as-is” appraisal will be secured by the Housing Finance Specialist to determine feasibility of rehabilitation and any cost of such appraisal shall be added to the borrower’s loan. Should a loan not be granted, the cost of such “as-is” appraisal shall be repaid to the City by the applicant.

5. Application funding review:

The Housing Finance Specialist will recommend the maximum amount of loan funding which the applicant may receive to cover rehabilitation costs and still remain within the applicant’s ability to pay. Evaluation of the applicant’s complete file, will establish the limits of work to be accomplished and the limits and conditions of the loans. Final recommendation will be presented to the Housing Program Services Division Loan Committee.

6. Environmental site Inspection

Arrange for the City Housing Rehabilitation Specialist to inspect the property and prepare a Tank & Site inspection report which will identify any underground fuel tanks or close proximity to existing gas stations. This report is used for the environmental clearance required on each project.

7. Scope of Work and Cost Estimate:

Section 10 – Loan Servicing
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

42 After the application has been completed and approved, the Housing Rehabilitation Specialist will conduct a full inspection with the homeowner(s). At that time a preliminary drawing will be made which later will be used for a computer drawing. Once the full inspection and drawing are complete the Housing Rehabilitation Specialist will prepare a work write-up and cost estimate based on the property inspection. Once the plans have been approved the Housing Rehabilitation Specialist will conduct a Bid Tour using a list of preapproved licensed Contractors.

A work write-up and cost estimate will be compiled, based on the property inspection report. All rehabilitation work to be done on the property will be itemized, and an estimate of the cost of each item will be included. The cost estimate shall be reasonable and shall reflect actual costs prevailing in the Turlock area for comparable work. Each item on the work write up will be place in one of the following categories;

A Mandatory repair items
B Potential Hazard items
C Neighborhood Upgrade items
D General Property Improvements
E Energy Saving items

This information is only used by Loan Committee as a general guideline of the repairs being made.

If the total estimated cost of the work exceeds the maximum amount of rehabilitation loan which the applicant could receive the Housing Rehabilitation Specialist shall eliminate or modify items in the work write-up as necessary to reduce estimate costs.

However, items or work necessary to meet the minimum Rehabilitation Standards dealing with basic health and safety shall not be eliminated.

As soon as possible, the City shall consult with the prospective applicant on the changes made to the original work write-up and cost estimate. As a result of the consultation and agreement between the City and the applicant on the work to be done, the City shall prepare any additions or revisions to the work write-up and prepare a final cost estimate.

8. Pest inspection report

A pest inspection report will be ordered, as determined by the Housing Rehabilitation Specialist/Inspector. if required by the Housing Rehabilitation Specialist.

9. Lead-Based Paint (LBP):

All properties built prior to 1978 and assisted under this Program are subject to the lead-based paint regulations at 24 CFR Part 35, effective Sept. 15, 2000 and as amended thereafter. Staff will assume that all properties built prior to 1978 contain lead based paint and will require a lead based paint clearance from a certified lead assessor upon completion of project.

10. Owner Construction Document Approval:

Section 10 – Loan Servicing
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

43 Program staff prepares construction documents consisting of Invitation to Bid, Bid Proposal, General Conditions, Specifications, and Work Estimate. Approval by owner authorizes program staff to issue invitations to bid.

11. Invitation to Bid:

Program staff solicits sealed bids from a current list of pre-qualified, licensed, insured general building contractors. Construction documents are made available to interested bidders at the job site walk-thru which is held for contractors in order to review the scope of work. All interested contractors or a company representative must attend a mandatory walk-thru in order to submit a bid. All bids must be turned in, at or prior to the date and time listed on the Invitation to Bid. Any bid submitted after the written deadline will not be accepted.

1) Based on work needed, housing staff may solicit bids in grouped project bids.

Ex: 3 households needing roof bids sent only to roofing companies for all 3 projects in bid.

12. Bid Opening and Selection of Contractor:

All bids received are publicly opened by program staff at the Housing Division office at the bid deadline. Upon review by program staff and owner, and verification of bidder's qualifications, the contract is awarded to the lowest responsible, and responsive bidder. All eligible bids must be within ten percent (10%) either higher or lower of program staff's cost estimate. In the event that a single bid is received the project will be sent out for re-bid. In the event that all bids are not within the 10% Rehabilitation Specialist parameter, an average of all bids received will be used as the new Rehabilitation Specialists estimate. In the event the property owner does not want to move forward with the lowest responsible, responsive bid, the homeowner has 10 business days to submit, in writing, why they do not want to proceed with the lowest bidder. If the homeowner’s reason for rejection of the lowest responsible, responsive bid is accepted by the Housing Program Manager, the next lowest responsible, and responsive bid will be chosen. If the Housing Program Manager rejects the homeowner’s reason for rejection of the lowest responsible, responsive bid, the homeowner can either accept the lowest responsible, responsive bid or request that all bids be rejected and the project be put out for re-bid.

Should the borrower opt not to accept the first 2 lowest reasonable, responsive bids, the project will be put out for re-bid. Property owner will have thirty (30) days to accept the lowest reasonable bid. Project will be placed for re-bid only once.

When the original scope of work is changed by more than twenty percent (20%) of the total costs the project will be placed for re-bid.

13. Temporary Relocation:

Housing Finance Specialist will work with the borrower and Housing Rehabilitation Specialist to determine if the rehabilitation work will require temporary relocation of the occupants. A Temporary Relocation grant may be available to help cover relocation expenses to the Owner.

Section 10 – Loan Servicing
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

44 14. Program Staff Recommendation to Loan Committee:

Upon processing of the application, review of the scope of work and cost estimate, program staff will evaluate the project with respect to program criteria. A report containing the recommendation of program staff is presented to the Loan Committee.

15. Loan and or Grant Approval or Denial:

The City will complete loan processing and furnish applicant with a copy of the terms and conditions of the rehabilitation loan. The Housing Finance Specialist will furnish all paperwork, loan documentations and final recommendation to the Housing Rehabilitation Loan Committee for final loan approval. Upon loan approval by the Housing Rehabilitation Loan Committee, a demand for full loan amount will be processed to the City’s Finance Department and a check will be issued for deposit into borrower’s escrow account.

16. Owner-Builder:

In certain instances program staff may determine that the property owner is a qualified licensed general contractor. See “Contractor Requirements” in Section 3E.on page

14. The normal bid process will not be followed. Instead, the owner must agree to complete the work within the cost estimate prepared by program staff, with the exception that the owner-builder may not charge his/her personal labor costs to the project. Program staff will handle construction management.

The following conditions must be met for Owner-Builder projects

a. The property owner-builder must be a licensed general contractor.

b. The owner-builder must provide a current license, insurance information and other documentation normally required as part of the regular contractor qualification process.

c. The owner-contractor must submit bid proposal(s) on program forms.

d. Proposals from sub-contractors (if any) must be signed and submitted by owner- builder for review by program staff.

e. Program staff will review bid proposal(s) for compliance with program regulations.

f. The value of the owner-builder's labor may not be charged to the project, with one exception. The owner-builder may pay his or her employees reasonable wages or salaries and may include such payments in the cost of the project.

g. If proposal is over 10% of program staff estimate, Owner builder and program staff will review basis for proposal. Final loan approval shall be made by Loan Committee.

Commented [JF3]: No longer use escrow accounts

Section 10 – Loan Servicing
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

45 h. If no consensus for the total project costs can be reached, project must be released for competitive bid.

i. Construction monitoring on owner-builder projects shall be performed by program staff in accordance with these Guidelines.

j. Program staff has final authority regarding quality and acceptability of all work.

17. Loan Rehabilitation Contract Execution:

The City will prepare construction contract documents for applicant and obtain appropriate bids and proposals.

a. Written Contract- The rehabilitation construction work financed through this program shall be undertaken only through a written contract between a licensed contractor and the borrower.

b. Bid Obligation- A licensed contractor shall be obligated to honor his/her bid for a period of 90 days, or note otherwise on his/her bid.

c. Work Write-Up -The work write-up is prepared by the City Housing Rehabilitation Specialist/Inspector and shall be of sufficient detail to act as the contract specifications covering the specific rehabilitation work for each property.

Illustrative sketches or drawings shall be prepared by the City Housing Rehabilitation Specialist when necessary to show the scope of the work involved so that a fair bid for the work can be obtained, and to avoid misunderstandings with the contractors. The work write-up shall clearly establish the nature of the work to be done, the material and equipment to be installed. Known acceptable brands shall be identified by reference to manufacture’smanufacturers or association specifications, and provision shall be made for acceptance of “or equal” substitution, determinations to be made by the City Housing Rehabilitation Specialist.

d. Contract – The City shall prepare general conditions for use in all construction contracts for property rehabilitation. The construction contract between a licensed contractor and a borrower shall be signed by the contractor and accepted by the loan applicant following approval of the rehabilitation loan. It shall contain a bid and proposal and the general conditions as well as the specifications for the work to be performed.

e. Execution - Program staff prepares all loan and contract documents for execution. Owner, Contractor, and City execute documents that are deposited into escrow with City instructions for recordation, issuance of title and other applicable actions.

18. Order to Proceed

Upon expiration of the property owner's right of rescission period (three business days, this excludes holidays and weekends), program staff issues an Order to Proceed to the contractor.

Section 10 – Loan Servicing
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

46 19. Construction Monitoring:

Work is monitored and inspected by the Housing Rehabilitation Specialist in coordination with HUD guidelines.

20. Permits

All rehabilitation projects will be subject to the contractor or owner-builder obtaining proper City permits from the Building Department. All permits need to be posted at the job site. Original job cards will be submitted with the 100% payment once the Building Department has signed off on the Final.

21. Servicing of funds

Funds approved by loan committee and all documents necessary to secure the loan as established by escrow instructions have been assembled, recording instructions will be forwarded to the title company. The Title Company will inform the City when appropriate documents are recorded and such agency will issue title insurance, as per City’s request. The City shall not disburse funds from the Rehabilitation Loan Account until the borrower’s Right of Rescission has expired as required by law. Loan proceeds shall be used only to pay for costs of services and materials necessary to carry out the rehabilitation work for which the loan will be approved as per these policies.

Forgivable Loan will be serviced in house and will be monitored on an annual basis.

22. Payment for Work:

Program staff and borrowers authorize payments for work completed in a satisfactory manner. Checks for progress payments are made payable to the contractor.

Disbursements:

a. Owner-Contractor Method

1) Progress pPayments shall be made as set forth in Construction Agreement between owner and contractor. Invoices will be submitted monthly for work completed. All requests for payments will require inspections by the Housing Rehabilitation Specialist and a detailed, itemized contractor invoice listing the items being submitted for payment. Progress pPayments shall not exceed 90 percent of the value of the work satisfactorily completed.

2) The final progress payment shall not be made until all work has been completed and accepted by the borrower, Housing Rehabilitation Specialist, inspected and finalized by the City of Turlock Building and Safety Division and all lien waivers have been obtained by Housing staff.

3) Final Payment of the 10% retention is authorized by program staff upon:

i. Completion of all work and punch list items by contractor. ii. Receipt by program staff of material and equipment warranties.

Section 10 – Loan Servicing
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

47 iii. Lien waivers received from all sub-contractors, employees, and material suppliers for the rehabilitation work.
iv. Recording of the Notice of Completion by program staff. v. Expiration of a 35-day lien period.

b. Owner-Builder Method

1) Progress payments shall be made as set forth in the ConstructionLoan Agreement between owner and the City. Invoices will be submitted monthly for work completed. All requests for payments will require inspections by the Housing Rehabilitation Specialist and original receipts for installed materials being submitted for payment. Progress payments shall not exceed 90 percent of the value of the work satisfactorily completed.

2) The final progress payment shall not be made until all work has been completed and accepted by the Housing Rehabilitation Specialist inspected and finalized by the City of Turlock Building and Safety Division and all lien waivers have been obtained by Housing staff.

3) Final Payment of the 10% retention is authorized by program staff upon:

i. Completion of all work and punch list items by owner/sub-contractor(s). ii. Lien waivers received from all sub-contractors, employees, and material suppliers for the rehabilitation work.
iii. Recording of the Notice of Completion by program staff. iv. Expiration of a 35-day lien period.

c. Advances

The City shall advance funds as necessary for appraisal, preliminary title report and termite inspection report. When the loan is approved, the City shall be reimbursed from the proceeds of the loan. If the loan is withdrawn or not approved, the applicant will not be charged for monies advanced.

d. Excess Funds; Upon completion of all rehabilitation work specified in the contract and upon charging the loan fund account with advances by the City, the balance of the account may be used, with the approval of the Housing Program Services Division Manager, for the purpose of making additional repairs not included in the contract documents but permissible by loan policy. If such additional repairs are not made, the balance shall be applied toward the principle principal loan balance.

23. Work Change Orders

Should there be any changes to the existing Work Write-Up, with or without any involvement of costs, a City Work Change Order form will be required. The change order will have to be approved and signed by the Owner, Contractor, Housing Finance Specialist and Housing Rehabilitation Specialist prior to any work being performed. In the event that work is completed without a signed authorized change order, the work may not be compensated.

Section 10 – Loan Servicing
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

48 24. Contract Disputes:

a. If any dispute arises relating to the quality or quantity of materials or workmanship or anything pertaining to the work, the Borrower and Contractor shall attempt to settle the dispute between themselves without litigation by first discussing said dispute with the City of Turlock Housing Rehabilitation Specialist within five (5) business days of the dispute. In the event that the dispute remains unresolved, then the Borrower and Contractor shall appeal such dispute to the Housing Program Services Manger within five (5) business days of the above-referenced discussion with the Housing Rehabilitation Specialist. In the event that the dispute remains unresolved, then the Borrower and Contractor shall appeal such dispute to the Director of Development Services within five (5) business days of the above- referenced discussion. If the dispute is not resolved at this level, the parties may appeal such to the Turlock City Manager within five (5) business days.

b. If the parties are unable to reach settlement through their appeal to the City Manager, then they are free to pursue all of their legal remedies as provided by California law.

25. Notice of Completion:

Program staff files a Notice of Completion with the County Recorder upon final completion of the work and receipt from contractor of finalized building permits.

26. Evaluation:

Contractor will be evaluated at the end of each project. Evaluation will be discussed with contractor providing him/her a list of job concerns and compliments.

98-C. Loan Committee

1. The Housing Program Services Loan Committee serves as the decision-making body for the program.

2. The Loan Committee will be convened to approve or deny by majority vote the following:

a. Loans and Grants.

b. Subordination requests: The Loan Committee shall have the authority to permit subordination of any program loan if the subordination would be consistent with the purpose of the original loan, and the after-rehabilitation equity meets the minimum requirements set forth in these Manual.

c. Repayment moratoriums.

d. Other applicable requests or actions.

e. Hardship Requests

Section 10 – Loan Servicing
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

49 3. The Loan Committee may impose such conditions as necessary or desirable to ensure that all aspects related to the rehabilitation project are consistent with these Guidelines, and to reduce to the extent feasible any risk associated with the project.

For example, any existing private "blanket" loan that encumbers more than the parcel containing units participating in the City's rehabilitation program should be divided proportionately so that the amount of an existing private loan affecting the property is reduced.

98-D. Applicant WaitingInterest List

Upon expenditure of all rehabilitation budget funds, an interest waiting list will be established. It will be based on a first come-first serve basis. No priority will be given to any applicants.

109. Loan Servicing
109-A. Overview

These loan servicing policies and procedures are intended to preserve the City’s financial interest in properties purchasedassisted with funding through the Housing Rehabilitation Program.

109-B. Payment of Property Taxes and Insurance

1. Borrower must maintain property insurance coverage naming the City as loss payee when in first position or additional insured if the loan is a second mortgage. If borrower fails to maintain the necessary insurance, the City will contact the Borrower reminding them of the insurance requirement. The Borrower will have 30 days to provide proof of insurance. If verification of insurance is not received, the City may call the loan due.

2. If the Borrower fails to maintain required hazard insurance (including flood insurance if the property is located within a 100-year floodplain) the City may take out a “forced place” insurance policy to cover the property. City shall obtain a judgment for any amounts expended by City under this section, and shall record a judgment lien against the property. The City is currently not designated in a flood zone.

3. Property taxes must be kept current during the term of the loan. If the Borrower fails to maintain payment of property taxes, then the City may pay the taxes current and add the balance of the tax payment plus any penalties to the balance of the loan and may call the loan due.

109-C. Owner-Occupancy Verification

1. The Borrower shall be required to complete and submit an Annual Occupancy Certification. Such report shall include the following:

a. Evidence of Borrower’s occupancy of the Property as Borrower’s principal place of residence;

Section 10 – Loan Servicing
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

50 b. Evidence of payment of property taxes and hazard insurance.

c. Other information reasonably required by the City.

109-D. Tenant-Occupancy Verification

Rent limitations will be placed on each assisted unit per 24 CFR 570.208(a)(3) to ensure affordable rents. The maximum rent cannot exceed the High HOME rent limits as established by HUD based on the number of bedrooms per unit. When units become vacant during the affordability period, subsequent tenants must be income-eligible and must be charged the applicable rent. HUD High HOME rent limits can be found at the HUD Exchange website at https://www.hudexchange.info/programs/home/home-rent- limits/ or contact housing staff for the limits.

1. The Owner shall be required to submit an Annual Tenant Occupancy Certification and documentation. Such report shall include the following:

a. Evidence of Tenant’s income and occupancy of the Property. See “Income Eligibility and Verification” on page 77 for information.

b. Evidence of payment of property taxes and hazard insurance.

c. Other information reasonably required by the City.

2. Owner - Investor housing shall also be conditional on the following:

a. Normal rental increases are permitted but cannot exceed HUD’s Fair Market Rent Rates. Rent rates can be obtained by the Housing Program Services Division.

b. The grantee enters into and records an agreement whereby the occupancy and rental obligation continue throughout the loan term or until satisfied. Occupancy and rental obligations will be based on the funding source.

c. Rent limitations will be placed on each assisted unit per 24 CFR 570.208(a)(3) to ensure affordable rents. The maximum rent cannot exceed the High HOME rent limits as established by HUD based on the number of bedrooms per unit. When units become vacant during the affordability period, subsequent tenants must be income-eligible and must be charged the applicable rent. HUD High HOME rent limits can be found at the HUD Exchange website at
https://www.hudexchange.info/programs/home/home-rent-limits/ or contact housing staff for the limits.

d. See Affordability Requirements for additional conditions on rental units.

109-E. Required Noticing and Restrictions on Any Changes of Title or Occupancy:

1. In all cases where there is a change in title or occupancy or use, the Borrower must notify the City in writing of any change. City and borrower will work together to ensure the property is kept in compliance with the original Housing Rehabilitation Program terms and conditions. These types of changes are typical when Borrowers do estate

Section 10 – Loan Servicing
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

51 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.

2. If a Cchange offrom ownership occurs at a sale, the loan is not assumable and the loan balance is immediately due and payable in full.

3. If a transfer of the property occurs through inheritance, property can only be transferred to the spouse (as owner-occupant) or disabled dependent who must reside at the home as the primary residence. Any other transfer is not permissible and loan will be due in full. In the event that the heir is neither a spouse nor a disabled dependent, the heir will not be provided the opportunity to assume the loan. If the heir is a non-income eligible family, the balance of the loan is due and payable in full. If the heir intends to act as an owner-investor, the balance of the loan is due and payable in full. Other exceptions are subject to the review and approval of City council.

4. 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.

5. 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 City 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.

109-F. Subordination

1. If the Borrower wishes to refinance any superior loans, the Borrower must submit a Request for Subordination to the City. Subordinations will be granted only under the following conditions:

a. “No cash-out” allowed. Cash out means there are no additional charges on the transaction above existing loan balance. Escrow closing fees are permitted.

b. No third party debt pay-offs or additional encumbrance on the property above traditional refinance transaction costs.

c. The refinancing Llowers the families housing cost with a lower interest rate

d. Refinancing for a shorter term will be permitted as long as the increase in housing costs do not exceed allowable back and front- end ratios.

e. Total indebtedness secured by the property may not exceed the current market value of the property. In cases of economic crisis, the subordination request will be approved on a case- by- case basis.

2. The City Loan Committee will review and approve or deny the Request for Subordination and, if approved, the escrow company will provide the proper

Section 10 – Loan Servicing
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

52 subordination documentation, including a new Request for Notice of Default for the City, for execution and recordation by the Lender.

109-G. Demand/Pay-off

1. Upon receiving a Notice of Demand/Pay-off, City’s Housing Program Services Division or their designated servicing agency, shall calculate the amount of principal and interest due, and transmit the payoff amount to the requesting party.

2. Upon receipt of all due principal and interest, City shall reconvey the mortgage deed of trust.

109-H. Request for Notice of Default

1. The City shall record a Request for Notice of Default for each lien senior to the City’s mortgage.

a. This document requires any senior lien holder listed in the notice to notify the Citylender of initiation of a foreclosure action. The City will then have time to contact the Borrower and assist them in bringing the first loan current. The City can also monitor the foreclosure process and go through the necessary analysis to determine if the loan can be made whole or preserved.

109-I. Foreclosure by Senior Lien Holder

1. 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.

2. When a senior lien holder starts a foreclosure process and the City is notified via a Request for Notice of Default, the City, who is the junior lien holder, may cancel the foreclosure proceedings by "reinstating" the senior lien holder. The reinstatement amount or payoff amount must be obtained by contacting the senior lien holder. This amount will include all delinquent payments, late charges and fees to date. City must confer with Borrower to determine if, upon paying the senior lien holder current, the Borrower can provide future payments. If this is the case then the City may cure the foreclosure and add the costs to the balance of the loan with a Notice of Additional Advance on the existing note. This action will be submitted to the loan committee for review and approval.

3. If the City 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 lien holder in total and restructure the debt such that the unit is made affordable to the Borrower. If the City does not have sufficient funds to pay the senior lien holder in full, then they may choose to cure the senior lien holder and foreclose on the property themselves. As long as there is sufficient value in the property, the City can afford to pay for the foreclosure process and pay off the senior lien holder and retain some or

Section 10 – Loan Servicing
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

53 all of their investment. This action will be submitted to the loan committee for review and approval.

4. If the City decides to reinstate, the senior lien holder 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 (3) to six (6) months from the date of recording of the "Notice of Default." If the City fails to reinstate the senior lien holder before five (5) days prior to the foreclosure sale date, the senior lien holder would then require a full pay off of the balance, plus costs, to cancel foreclosure. If the City determines the reinstatement and maintenance of the property not to be cost effective and allows the senior lien holder to complete foreclosure, the City's lien may be eliminated due to insufficient sales proceeds.

109-J. Recapture Provision

1. The Recapture provision applies only to HOME and CDBG funds.

a. When a loan is refinanced or the property is sold or the Applicant is no longer the principal resident or upon discovery of willful misrepresentation or fraud in connection with the program the money from the Housing Rehabilitation Program loan is instantly repayable.

b. The seller is entitled to a fair rate of return on his or her investment, including any documented improvements to the property.

2. The affordability period for funds depends on the amount of the City HOME and CDBG investment in the property subject to recapture and the nature of the activity.

If the HOME and CDBG assistance is over $540,000, then the affordability period is 15 years. Payments and payoffs that meet the affordability requirements are returned as Program Income to the city. Payments and payoffs that do not meet the affordability requirements are returned as Recaptured funds to the city.

3. The City imposes recapture requirements to recapture the entire amount of the City HOME and CDBG investment from the homeowner, to ensure affordability.

However, when the recapture requirement is triggered by a sale (voluntary or involuntary) of the housing unit, and there are no net proceeds or the net proceeds are insufficient to repay the City HOME and CDBG investment due, the city can only recapture the net proceeds, if any. The net proceeds are the sales price minus superior loan repayment (other than City HOME and CDBG funds) and any closing costs.

4. If the net proceeds are not sufficient to recapture the full City HOME and CDBG investment plus enable the homeowner to recover the amount of the homeowner’s investment and any capital improvement investment made by the owner since purchase, the City will share the net proceeds. The net proceeds are the sales price minus loan repayment (other than City HOME and CDBG funds) and closing costs.

The net proceeds will be divided proportionally as set forth in the following mathematical formulas.

City HOME and CDBG investment . X Net proceeds = City HOME and CDBG amount

Section 10 – Loan Servicing
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

54 (City HOME and CDBG investment + homeowner investment) to be recaptured

Homeowner investment . X Net proceeds = amount to homeowner (City HOME and CDBG investment + homeowner investment)

109-K. Foreclosure by City

1. 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 City may consider foreclosure. City’s staff will consider the following factors before initiating foreclosure:

a. Can the loan be cured and can the rates and terms be adjusted to allow for affordable payments such that foreclosure is not necessary?

b. Can the Borrower refinance with a private lender and pay off the City?

c. Can the Borrower sell the property and pay off the City?

d. Does the balance warrant foreclosure? (If the balance is under $5,000, the expense to foreclose may not be worth pursuing.)

e. 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?

2. If the balance is substantial and all of the above factors have been considered, the City 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 City to prevent foreclosure (such as, funds to bring a delinquent loan current or pay off a Deferred Payment Loan).

3. At the end of thirty days, the City will 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 lien holders. The service will advise the City 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 City informed of the progress of the foreclosure proceedings.

4. When the process is completed, and the property has "reverted to the beneficiary" at the foreclosure sale, the City could sell the home themselves under a homebuyer program, use it for an affordable rental property, use it for transitional housing facility or other eligible use.

5. Foreclosures are subject to the review and approval of the City Council.

109-L. Use of Third Party Agent

Section 10 – Loan Servicing
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

55 Portions or all of the Housing Rehabilitation Program loan servicing shall be performed by City or, at City’s option, shall be performed by a third party under contract with City.

109-M. First Mortgage Underwriting Requirements

1. The following Housing Rehabilitation Program requirements shall apply to all applicants prior to obtaining a Program Loan or grant.

a. First mortgage loans shall not include provisions for negative amortization, principal increases, adjustable rate mortgages (ARM), balloon payments, deferred interest, or reverse mortgages.

b. Credit Worthiness Criteria

For purposes of qualifying Borrowers credit worthiness criteria shall be:

1) No late payments 1 year from date of applying.

2) No outstanding judgments, collections or liens.

3) Bankruptcy must have been a minimum of three (3) years from date of discharge with no additional collections.

4) Foreclosure must have been a minimum of three (3) years from date of sale.

109-N. Cash-Out of Escrow

1. Borrowers may not receive cash out of escrow from any loan package containing City financing. Loan proceeds shall be used only to pay for costs of services and materials necessary to carry out the rehabilitation work for which the loan will be approved as per these policies.

109-O. Title Insurance

1. ALTA title insurance policy in the amount of the City loan will be required at Borrower’s expense.

109-P. Hazard Insurance

1. Borrower must provide and maintain fire and flood (if the property is located in a 100- year floodplain) insurance in an amount at least equal to the replacement value of the improvements.

2. City must be named as an additional loss payee on the policy.

3. Course of construction insurance policy will be required upon beginning of rehab work.

Commented [JF4]: This is covered in underwriting section.

Section 11 – Federal Regulatory Provisions
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

56 1110. Federal Regulatory Provisions

101-A. Conflict of Interest

In accordance with Federal and State regulations no person who is an employee, agent, consultant, officer, or elected official or appointed official of the City who exercise or have exercised any functions or responsibilities with respect to CalHome, CDBG, HOME, or NSP assisted activities under this Program, or who are in a position to participate in a decision making process or gain inside information with regard to such activities, may obtain a financial interest or benefit from this activity, or have a financial interest in any contract, subcontract, or agreement with respect to this activity, or with respect to the proceeds of the this activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for one year thereafter.

101-B. Fair Housing and Non-Discrimination

Implementation of the program will be consistent with the City’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 and federal funds on the basis of religion or religious affiliation, age, race, color, creed, gender (sex), sexual orientation, marital status, familial status (children), physical or mental disability, national origin, or ancestry, or other arbitrary cause.

The City shall comply will all Federal and State Laws and Regulations pertaining to fair housing and equal opportunity including but not limited to the following references.

▪ Title VI of the Civil Rights Act of 1964, As Amended (422 U.S.C. 2000d et seq.) The provisions for HUD programs may be found in 24 CFR Part 1.

▪ Section 109 of the Housing and Community Development Act of 1974

▪ Age Discrimination Act of 1975, As Amended (42 U.S.C. 6101). Regulations found at 24 CFR Part 146.

▪ Section 504 of the Rehabilitation Act of 1973

▪ Americans with Disability Act (ADA) (42 U.S.C. 12131; 47 U.S.C. 155, 201, 218, and 225).

▪ Equal Employment Opportunity (Executive Order 11246, as amended) Implementing regulations may be found at 41 CFR Part 60.

▪ Equal Opportunity in Housing (Executive Order 11063, as amended by Executive Order 12259). Regulations may be found in 24 CFR Part 107.

▪ Title VIII of the Civil Rights Act of 1968, As Amended by the Fair Housing Amendments Act of 1988 (The Fair Housing Act).

Section 11 – Federal Regulatory Provisions
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

57 ▪ Fair Housing Act (42 U.S.C. 3601-3620) Fair Housing Act implementing regulations for HUD programs may be found in 24 CFR Part 100-115.

101-C. Relocation of Displaced Tenants

It is not anticipated that the implementation of this Program will result in the displacement of any person, household or family. Every attempt will be made to avoid displacement in projects funded through this program. In the event displacement is unavoidable, it shall be subject to all applicable local, state, and federal laws, the federal Uniform Relocation Act, and all others as may apply.

101-D. Consistency

City Program regulations shall be consistent with and shall implement required regulations, and where different, due to changes or refinements made at the federal, state, or local levels or where questions arise which are not addressed by these policies.

101-E. Environmental Review

Environmental Review process will be completed as required by the applicable funding sources and regulations.

1. The environmental effects of activities carried out with State and Federal funds must be assessed in accordance with the provisions of the National Environmental Policy Act (NEPA).

2. The City shall conduct said environmental review in accordance with 24 CFR Part 58.

101-F Matching

Matching will follow the funding sources.

1. CDBG: No Matching requirements apply to CDBG.

2. HOME: Matching is the commitment of non-federal funds to supplement HOME funds used to assist in the provision of affordable housing. HOME funding require a matching contribution of not less that 25 percent of the funds drawn from the City’s HOME Investment Trust Fund Treasury account in the corresponding fiscal year, unless waived or reduced by HUD. Matching funds are calculated on a project-by- project basis and applied on a program-wide basis.

3. CalHome: No Matching requirements.

4. PLHA: No matching requirements.

101-G. Program Income and Reuse Account

1. CDBG, and HOME, and PLHA Program Income

Section 11 – Federal Regulatory Provisions
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

58 a. All repayments of loan principal and interest shall be received by City and deposited into a separate account maintained by City’s Finance Department.

b. The account shall be interest bearing into which all earned interest shall be deposited.

c. All funds deposited into the account shall be the property of the City.

d. A line item for reuse of funds will be inserted into City’s fiscal year budget allocating and approving use of funds for eligible activities.

e. All Program Income funds shall be expended in accordance with the regulations and the Agreement between the City and HUD or State.

2. CalHome Reuse Plan Account

The City has adopted this plan to govern the use of monies received as repayments of loan principal and/or loan interest resulting for activities funded under the State of California, CalHome Program. The City has formulated this document to comply with Article 2, Section 7724-Reuse Account requirements of the CalHome Program, Title 25 California Code of Regulations, Division 1, Chapter 7, Sub-Chapter 9, commending with Section 7715.

a. All repayments of CalHome loan principal and interest shall be received by City and deposited into a separate reuse account maintained by City’s Finance Department.

b. The reuse account shall be interest bearing into which all earned interest shall be deposited.

c. All funds deposited into the reuse account shall be the property of the City and are to be used for CalHome eligible activities.

d. A line item for reuse of CalHome funds will be inserted into City’s fiscal year budget allocating and approving use of funds for CalHome eligible activities.

e. All reuse funds shall be expended in accordance with the CalHome Regulations and the Standard and Monitoring Agreements between the City and the Department.

f. City shall allow the Department full access to the reuse account records for the purpose of determining City’s compliance with CalHome regulations.

g. Target area restrictions are not applicable to reuse funds.

h. Loan maximum subsidy limits will convert to Department program guidelines.

Section 12 – Exhibits
City of Turlock Housing Rehabilitation Program Policies and Procedures Manual

59 112. Exhibits

112-A. Rehab Specifications Manual “A Guide to Rehabilitation Standards” 112z-B. Summary of General Program Guidelines

EXHIBIT C
Rehabilitation Specifications Manual

“A Guide to Rehabilitation Standards”

See separate attachment

EXHIBIT B
Summary of General Program Guidelines

See specific sections for complete qualifications.

Owner Occupied
(Single Family,
includes)
Owner Occupied
(Owner-builder)
Owner-Investor/
Non-Profit
(single/multi-family)
Mixed-Use
(Owner and investor
occupied)
Property Location
(See Eligible Property
Requirements on page
66)

City Limits of Turlock
excluding county
pockets with the
exception of HOME.

City Limits of Turlock
excluding county
pockets with the
exception of HOME.

City Limits of Turlock
excluding county
pockets with the
exception of HOME.

City Limits of Turlock
excluding county
pockets with the
exception of HOME.

Other Misc
Not Applicable
Owner must be a
licensed General
contractor
Not Applicable Not Applicable
Occupancy
Requirements
See Rental Units under
Terms & Conditions on
page 2421

Owner occupied Owner occupied Occupied by income
eligible tenants
Owner occupied and
or occupied by
income eligible
tenants.

Rent limitations
See Rental Units under
Terms & Conditions on
page 2421

Not Applicable Not Applicable
Rent limitations
based on funding
source(s).

Rent limitations based
on funding source(s).

Loan Funding Limits
See Loan Funding Limits
on page 1716
$75,000 per unit.

Reconstruction -$120
per square foot
$30,000 per unit for
manufactured/mobile
home
$75,000 per unit $75,000 per unit $75,000 per unit
Income eligibility
Limits
(by Households)

80% of MAI (owner) 80% of MAI (owner) 80% of MAI (tenant) 80% of MAI (tenant) Interest
See Terms & Conditions
on page 2421

Amortized at 0%
Deferred at 2%
Amortized at 0%
Deferred at 2%
Amortized at 3%
Deferred: N/A
Owner:

Amortized at 0%
Deferred: 2%
Investor (rentals):

Amortized at 3%
Deferred: N/A
Terms
See Terms & Conditions
on page 2421
20 yrs 20 yrs 20 yrs 20 yrs
Forgivable Loan and
Energy Efficiency
Program
Interest and Terms
Interest: 0%
Term: 5 yrs
Interest: 0%
Term: 5 yrs Not Applicable
Owner occupied only:

Interest: 0%
Term: 5 yrs
Temporary
Relocation Grant
See Temporary
Relocation Grant under
Loan types and Grants on
page 2119
Eligible for Maximum
$1,000 per unit
Eligible for Maximum
$1,000 per unit Not Eligible Not Eligible
Reverse Mortgage

Interest: 0%
Term: 5 yrs
Interest: 0%
Term: 5 yrs Not Applicable
Owner occupied only:

Interest: 0%
Term: 5 yrs