173 Housing Rehabilitation Program---~--
RESOLUTION ~I73
Town of Yelm Washington
PROGRAM DESCRIPTION AND POLICY STATEMENT
Small Cities Block Grant
Housing Rehabilitation Program
This is a resolution structuring the program requirements and declaring the
policies to be used in operating the Housing Rehabilitation Program.
WHEREAS, the Town of Yelm has a need for rehabilitating low and moderate income
housing and improving the quality of life in the community, and
WHEREAS, the Town of Yelm has been awarded a Community Development Block Grant
jointly with the towns of Bucoda and Tenino 4y the State Department of Community
Development, and
WHEREAS, certain policies, procedures and requirements to govern the program need
to be established,
NOW, THEREFORE, BE IT RESOLVED 8Y THE TOWN C0~INCIL OF THE TOWN OF YELM
WASHINGTON,as follows:
That the following policies and requirements are adopted to establish the Housing
Rehabilitation Program.
Section 1: FUNDING ALLOCATION
A. Owner Occupied/Rental Housing: Approximately eighty percent (80~) of the
total funds coming to the community shall be expended for owner-occupied
housing. The remaining twenty percent (20~) shall be allowed for rental
housing rehabilitation. Based on the demand and participation by homeowners,
priorities for funding and processing of applications shall go to the owner
occupied housing.
B. Target Area: In the first year approximately 80 percent of the rehabilita-
tion loans provided shall go to the residential areas directly surrounding
the downtown area. (See map in Administrative Plan for a description Df
the boundaries).
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Section 2: Eli ibility and Priority
A. Income Eligibility: To be eligible fora rehabilitation loan, the appli-
cants gross family income shall be no more than 80~ of the median income for
Thurston County based on family size. The established median income shall
be periodically adjusted by the Department of Housing and Urban Development
and used by the program. Each applicant will be required to provide ade-
quate documentation of all income sources through income tax statement, em-
ployer statements or other source to verify eligibility. Assets will not
be considered in determining eligibility, however, any income derived from
assets (e.g., interest, dividends, etc.) will be considered and included
in the gross family income.
B. Property Eligibility: Adequate consideration shall be given to insuring
the property is eligible for the program. Each applicant's property must
be in compliance with local zoning ordinances for residential use. The
unit must also be a permanent, habitable structure designed for residential
use. Each property must also be located in the incorporated area of the
Town as defined by the city limit boundaries. The unit must have at least
one major deficiency that presents a threat to the health and safety of the
occupants based on Uniform Building Code Deficiencies and established pri-
ority code items for the program.
C. Eligible Repairs: The loan funds must be used to correct major health and
safety hazards in a structure. A major health or safety hazard shall be
considered a structural (foundation, roofs, floors, walls, etc.) or func-
tional (electrical, plumbing, heating) component of a house which is deter-
mined to need substantial repair or replacement to meet Uniform Building
Code requirements.
D. Processing Priority: All eligible applicants will be awarded a priority
rating based on a combination of gross income and the units need for re-
habilitation. Eligible applicants will be processed based on this estab-
lished priority in as timely a manner as possible.
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Section 3: TYPE OF PROGRAM ASSISTANCE
A. Owner Occupied Housing: The program shall consist of providing low interest
loans requiring repayment based on ability to pay and deferred payment loans
for those households unable to make any repayments. The loans must go to
repair housing code deficiencies as defined by the Program Guidelines. The
program will provide loans in two areas:
(1) Home Improvement Loans: Loans under this category shall go to repair
major housing code deficiencies. The maximum loan amount shall be
$16,800 under this category,
(2) Emergency Home Repair: Emergency Loans will be granted to repair crit-
ically hazardous conditions which present an immediate threat to the
health and safety of the resident. Under this category both permanent
and mobile homes will be eligible for repair. The maximum loan amounts
shall be 53,600.
On all loans a lien shall be placed on the property to insure repayment of
the debt to the program. For applicants receiving either deferred payment
loans or loans requiring monthly payback, full repayment shall be required
when: (1) sale of the property or transfer of title occurs. (2) Applicant
abandons use of the property for 90 days or rents the property to someone
else; or (3) death of the applicant or the property passes to heirs.
B. Rental Housing: Under this category the program will provide up to 50% of
the total cost of the rehabilitation work with the total amount of the loan
not to exceed 58,400. The rental owner will be required to pay for the re-
mainder of the rehabilitation cost. Exceptions to this maximum amount shall
be allowed in cases of large units (three or more bedrooms).
Participation by rental owners shall initially be limited to one structure
per owner. When there is more than one living unit in a structure, up to
$16,800 maximum shall be allowed for the loan. The Housing Rehabilitation
Program will offer an interest rate of 5%. A minimum monthly payment of
$50.00 shall be required. Rental owners shall not be subject to the income
requirements to be eligible for the program. However, each participating
owner shall be required to rent their unit to a low or moderate income
households.
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Section 4: PROGRAM REQUIREMENTS AND GUIDELINES
A. Loan Requirements: Each applicant will be required to adhere to the estab-
lished loan requirements and obligations as set forth in the Administrative
Plan for the program. The specific program guidelines governing both the
owner occupied and rental housing program shall be applied to all partici-
pants.
B. Contractor Requirements and Eligibility: For purposes of the Housing Re-
habilitation Program, the definition of a contractor shall be defined by
the State of Washington RCW 18.27.010. A current certification of regis-
tration with the State of Washington for both general and speciality con-
tractors shall be provided. Proof of suitable licensing by the State of
Washington must be provided by contractor.
All contractors participating in the program shall be required to comply
with all guidelines and procedures on the construction contracts. As part
of the process of making a contractor eligible to participate in the pro-
gram the staff will contact the State Licensing Division to obtain a list
of any complaints and determine the nature of the complaints. Any unre-
solved complaints shall be cause for a contractor to become ineligible to
participate in the program.
Section 5: AMENDMENTS TO ADMINISTRATIVE PLAN AND PROGRAM GUIDELINES
Any changes, amendments or additions to the adopted Administrative Plan and
Program Guidelines shall be made by the Housing Rehabilitation Program Advisory
Committee. Any change made to the program shall be reported to the Town Council
at the next regular meeting.
Invalidation of any portion of the Housing Rehabilitation Program Adminis-
trative Plan by judgement, court order or governing agency shall in no way
affect any of the remaining portions which shall remain in full force and
effect.
Approved by the Town Council and Mayor.
DATE : - MAYOR ~. uc.,f~~.
ATTEST:
DATE: C~- J ~•- ~~., CITY CLERK ~ .
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