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HomeMy WebLinkAboutR-1992-D6081 Housing / Rental Rehab / Washington StateRESOLUTION NO. 8 A RESOLUTION authorizing and directing the City anager of the City of Yakima to file an application with the Washington State Department of Community Development for funding for a rental rehabilitation program. WHEREAS, the City of Yakima contemplates a rental rehabilitation program for which federal funding is available from the United State Department of Housing and Urban Development, through the Washington State Department of Community Development, and WHEREAS, the City Council of the City of Yakima deems it to be in the best interests of the City that an application be filed for funding for the purpose mentioned above, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: R.A. Zais, Jr., City Manager of the City of Yakima, is hereby authorized and directed to execute and file the attached application documents, including all understandings and assurances contained therein, with the Washington State Department of Community Development for funding for the purpose mentioned above; and he further is hereby designated as the official representative of the City to act in connection with that grant request and to provide such additional information as may be required. ADOPTED BY THE CITY COUNCIL this day of Mtzca 1992. ATTEST: Mayor City Clerk CITY OF YAKIMA OFFICE OF HOUSING AND NEIGHBORHOOD CONSERVATION PROGRAM YEAR 1992 STATE OF WASHINGTON DEPARTMENT OF COMMUNITY DEVELOPMENT RENTAL REHABILITATION PROGRAM CHECKLIST FOR APPLICANT, I. PROJECT SUMMARY 11. CERTIFICATIONS 111. NEIGHBORHOOD SELECTION A. Neighborhood Map B. Housing Need Considerations C Neighborhood Income D. Family Income E Average Rents F. Rent Affordability IV. SPECIFIC PROJECT SELECTION V. PROGRAM ADMINISTRATION ✓__ A. Housing Experience t%-__ -- B. Tenant Assistance and Relocation -- 0 _C Property Owner Agreement ..Lc! __ D. Memorandum of Understanding _ E Market Demand and Financing -1.Z—_ 1) Program Marketing -- 2) Client Selection Process .1Z. -- 3) Need for RRP Funds „� _ 4) Subsidy Mechanism y�-_ 5) Private Matching Funds (__ F. Construction Management .1,_ __ 1) Eligible Repairs __ 2) Cost -Estimates & Inspections J„/ __ 3) Federal Labor Standards 1,e✓ _- 4) Bid Process _ _ 5) Non -Discrimination & Equal Opp. __ 6) Environmental Review__ G Program Schedule t� __ H Program Management & Compliance 4!-_ _ V 1. CENTRALIZED RENTAL REHABILITATION PROGRAM V 11. ATTACHMENTS A. Neighborhood Map B. Rental Rehabilitation Program Schedule (Appendix 9 C Certification Regarding Lobbying (Appendix E) APPENDIX'S A. Relocation Policy B. Owner's Certification C Memorandum of Understanding D. Lenders Agreement/Commitment Letters G Investor's Application for Payment H Request for Wage Determination Contractor/Subcontractors Certification Payroll Certification Form WH -347 Statement of Compliance Form WH -348 Record of Employee Interview Form HUD -11 (9-86) I. Environmental Review 1992 PROGRAM DESCRIPTION/APPLICATION ALL APPLICANTS COMPLETE THIS SECTION 1 . PROJECT SUMMARY A. IDENTIFICATION APPLICANT: and Neighborhood Conservation ADDRESS: 129 N. 2nd Street Yakima, WA 98901 CONTACT PERSON: Dixie L. Kracht. Block Grant Manager ADDRESS: 112 S. 8th Street Yakima. WA 98901 PHONE : (509) 575-6101 TAX ID NUMBER: 91-60011293 COOPERATING PUBLIC HOUSING AUTHORITY: Yakima Housing Authority ADDRESS: 110 Fair Avenue Yakima. WA 98901 CONTACT PERSON: Roland Lewis. Section -8 Manager ADDRESS: 110 Fair Avenue Yakima, WA 98901 PHONE: (509) 453-3106 B. APPLICANT TYPE -- CHECK ONE FOR EACH CATEGORY De -Centralized Program Centralized Program C. PROJECT FUNDING SOURCE x 1. Washington State Rental Rehabilitation Program Request S 100,000 2. 50 Percent rehabilitation match $ (owner -investors, lenders, CDBG, etc.) Yakima Valley Bank U.S. Bank of Washington $ Seattle First Yakima Federal S & L S F'rstt,Tnterstate First Federal S & L pioneer National S Security Pacific Bank Washington $ Minima S 300.000 3. Program Administration (CDBG Community General Funds, RRP, etc.) 1_200,00Q Community Development Block Grant , 5,25Q State Department of Community DevelopjIlent 1, Administration 4. Total project funding ;1,605.000 D. PROJECT SUMMARY 1. Number of units to be rehabilitated 2. Number of Section 8 Certificates and Vouchers requested 3. Brief program description 20/2Q A joint public/private rehabilitation loan program that makes affordable money available to investors for the rehabilitation of rental units without having to increase the existing rent. E. AUTHORIZING SIGNATURES 1. Chief Executive Officer Richard, A. Zais. Jr.,City Managex of the Lead Applicant Name Title Signature Date 2. Chief Executive Officer James Adamski .;cecu ive pirectar of Cooperating Housing 3. Chief Executive Officer of Co -Applicant (if applicable) 4. Chief Executive Officer of Co -Applicant (if applicable) Signature Date Name N/A Date Name N/A Title Signature N/A Date Name N/A Signature 5. Chief Executive Officer N/A Title Date of Co -Applicant Name Title (if applicable) II. CERTIFICATIONS In authorizing this Application, the applicant city or county agrees or private nonprofit organization agrees to operate the Rental Rehabilitation Program (RRP) in conformance with the following certifications: A. The applicant will conduct and administer its RRP in accordance with the requirements of 24 CFR 511 published in the Federal Register on May 14, 1991. B. The applicant will conduct and administer its RRP in accordance with the Washington State Policies and Procedures for managing the RRP. C. The lower income benefit standard is reduced to 70 percent, as provided by 24 CFR 511.10. D. The applicant will comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, implementing regulations at 49 CFR 24 and the requirements of 24 CFR 511.14 and a written tenant assistance policy conforming to the requirements of 24 CFR 511.14 (a) (4) has been adopted. E. That all answers are correct to the best of applicant's knowledge. F. The applicant will not use RRP funds as match to the National Affordable Housing Act (NAHA). NAME OF LEAD APPLICANT City of Yakima Office of Housing & Neighborhood Conservation CHIEF EXECUTIVE R.A. Zais. Jr.. City Manager Name Title Signature Date V. PROGRAM ADMINISTRATION :::.a°3a •'y ":` t:v.:tff:'it yti•,`'';')'*+''•r�`��.`Na:;'i;$`:>::;:::vr': 'va?: w41P1E: R.�iir,'.'w��g. ;.9`.&fe f.�sSi'+�'•>'• .\• �.".` =rec •. •\: ''off'<` ♦' �`" Vic: ^ `4"-'�: -' - v �: �; :�`2hS:r}�' kw i,+..b\;. •: `o.;, 4 :. � : i'i ` v:',aY +.. 2�:v.';•i\a y. .. ♦♦♦♦'\�u•.• ♦ ylr♦'C•'i • ..v 'tip .t',a � `M1«.�mE~� ':«•3t��`':��:'a�€V•'��?�32i�'?''.y',�,E>:.�i.�s'd:•''.'ti .♦..,a;::::.,::.,•:.,,a•,:ax;•:;�.::t�.:•:aw:x.`:':c.3'•:4:kt:.1y::;?•:o;:;;•a •.; ra;:'.\\kx;;X'w.,.:';;> •.tir A. Housing Experience - Describe your organization's experience in housing rehabilitation and/or energy related repairs. List housing programs managed and length of time. The City of Yakima Office of Housing and Neighborhood Conservation has implemented local, state and federal housing programs for the past sixteen years. The current nine member staff at the Housing Office has four to fifteen years experience in their positions. They presently work in the following specialized fields; block grant manager, loan specialist, accounting technician and rehabilitation specialist, plus the availability of support services: planning, codes, legal and finance from the different divisions of the City of Yakima. The following programs have been developed and implemented by the Housing Division: 1. Multi -Family Rehabiilitation - This program offers affordable loan funds for the rehabilitation of rental units for investors. This program has agreements with eight lending institutions and has operated since 1983. 2. Single -Family Rehabilitation - This program offers affordable loan funds to rehabilitate owner occupied single family dwellings of low/moderate income families. This program has been in existence since 1975. 3. Elderly/Handicapped Repair Program - This program offers material grant funds and utilizes housing staff to complete health and safety repairs to homes of low/moderate income families who own and occupy their homes. This program has been in existence since 1975, 4. Urban Homesteading - This program made homeownership 1 opportunities available to low/moderate income first time home buyers using federally defaulted homes. This program has been in existence since 1985. 5. Homeownership - This program makes homeownership available to low/moderate income first time home buyers by subsidizing the private market loan. This program has been in existence since 1989. 6. Housing Counseling - This program offers information and referral to clients on different types of housing issues. This program has been in existence since 1975. 7. Rehab/Resale - This program purchases weedy lots and abandoned dangerous buildings that deter from the appearance and stability of a neighborhood. The lots are redeveloped into other housing opportunities. This program has been in existence since 1975. 8. Elderly Co-op - This program was developed to offer homeownership to low income elderly handicapped applicants. The applicants will own the individual units in a multi -unit building. This project started in 1989 and is in its final stages of completion. 9. Homeless Transitional Housing - This program was the purchase and development of a multi -unit building to house homeless families and give them the education and information to transition into the community. This program was developed in 1988 and is now run by the Yakima Valley Coalition for the Homeless. 10. Special Housing Needs - It is the position of the Housing Office to offer fmancial and technical assistance to nonprofit agencies in the development of housing opportunities for special need housing. This includes: drug rehab transitional housing, boarding house concept for semi-independent living, mentally developmental disablement housing, elderly independent rental units, family crisis temporary family units, and handicapp accessible HIV housing. B. Tenant Assistance and Relocation Policy - Does your organization have a written Tenant Assistance and 2 Relocation Policy? X Yes No If yes, attach a copy with this application, if no, identify the staff who will write the policy. Please Refer to Appendix A. C. Property Owner Agreement - Does your organization have a written Property Owner Agreement? Yes a No If yes, attach a copy with this application, if no, identify the staff who will write the agreement. Please Refer to Appendix B. D. Memorandum of Understanding - Does your organization have a written Memorandum. of Understanding (MOU)? X Yes No If yes, attach a copy. If no, identify the staff who will write the MOU. (A MOU is a contract between the lead applicant and any others involved in the RRP, particularly those who provide tenant assistance and environmental review. An MOU must be updated annually.) Please Refer to Appendix C. E. Market Demand and Financing - Identify staff for managing and documenting the following requirements: 1. Program Marketing - How will your RRP be marketed? (Activities must, at minimum, include media advertisements, outreach methods to MWBE owners/investors, and tenants.) Rental Rehabilitation Marketing Strategy It is the intent and purpose to project marketing to investors/owners having properties within the designated target area, needing in excess of $2,000 iin rehabilitation, and have units that have two or more bedrooms. 3 Priority will be given to applicants who have existing occupied units in substandard condition and have two or more bedrooms in each dwelling unit. Step 1 Dousing Survey 1. The Housing Office will do ownership surveys to indicate the number of owners of rental property and their addresses for future contact and program notification. Step II program Notification 1. The Housing Office will mail program flyers to each rental owner giving the basic information of the Rental Rehabilitation Program and where to make application. Step III Target Properties 1. The Housing Office will make field inspections of larger units that appear to be in need of rehabilitation. 2. Personal letters will be sent to these property owners offering assistance in bringing these units up to a minimum housing quality standard. Step IV Media Advertising 1. Newspaper ads will be placed in the real estate section of papers soliciting program participation in the Rental Rehabilitation Program. 2. Posters will be made and placed in strategic places visited by owners, including associations, clubs and public areas. 3. Public service announcements will be formulated and aired on both TV and radio Step V Personal Contacts 1. Presentations explaining their program will be presented to groups, clubs, and associations. 2. Representatives of real property owners will be contacted for meetings to talk about the benefits of the program, including outreach to minority owners through a Spanish interpreter. 3. Meetings will be held with agencies and groups who have tenant contacts and they can encourage the owners of their buildings to apply for the program. After the completion of the five step marketing strategy, an evaluation will be used to determine the strength, weakness, and the best response to each action. If participation is minimal and needs to be further addressed, the program itself will be evaluated to see if any changes need to be made to assist in furthering participation. 2. Client Selection - How will you ensure that potentiial owners/investors are eligible, (i.e., that they own the property)? A. Owners/Investors Eligibility For an investor to qualify for participation in the Rental Rehabilitation Program, they must meet the following criteria; 1. Have a rental unit that is within the targeted area. 2. The building needs to have a minimum of $2,000 in required repairs. 3. The rental unit operation must reflect a positive cash flow. 4. The property title must show fee simple or direct line ownership of the rental in the investors narne, with no clouds or liens and taxes are paid. 5. The property must show fair market value appraisal above the existing indebtedness. 6. The mortgage verification must reflect that the payments are current. 7. Investor's credit report cannot reflect any current judgements and/or liens. 8. The financial statement must show equal or more asset value than liabilities. 9. Verification of amount and source of income to be stable. Upon positive verification of all of this information, it would be determined that the investor would be eligible to participate in the program. B. Project Feasibility Each loan package that is prepared for the lending institutions review has been prepared on private market principals and would be financially sound. This is accomplished by the following requirements: 1. Requiring a fair market appraisal on the as is condition and after rehabilitation. 2. Requiring a positive cash flow on the property. 3. Ensuring that the overall debt service on the property to the lender is less than 80% and not more than 100% with a subsidy. 4. Requiring three estimated construction bids on the deficiency list and have the housing inspector review the selected bid. 5. Comparing the estimated rental rates with the rent surveys of the area. 6. Building into the loan profit and overhead, vacancy rates, and a contingency. 7. Adjusting the loan with a principle subsidy write down to make the payments realistic with the income. All of this is taken into consideration in developing a loan package for the lender which will assure that the project is not only cost feasible to accomplish the work, but has the ability to withstand the future projected payment schedule to repay the loan on its own merits. 3. Need for RRP Funds - Answer a) or b): a) Returning contractors, identify the amount of funds available for new project set-ups, starting from 1988 (to determine the balance of prior years funds, call CMIS at 1-800-877-7553). • 1990 _►►98.19 • 1989 -0- • 1988 -0- If there are funds available for new project set- ups, explain why you need additional RRP funds. This amount is insufficient for a single project. The above amount will be combined with the new allocation for anticipated projects. b) New applicants, explain why RRP funds are critical to the implementation of your project(s). Non applicable 4. Subsidy Mechanism How will your RRP funds be given to potential owners/investors? Check one of the following and describe the terms: Grant Loan X Deferred payment loan Principal reduction Other (Explain) A subsidy analysis will be used to evaluate the amount: of funds needed to make the project affordable to retain the affordable rents. This is determined by totalling the proposed rents and subtracting the existing indebtedness and operating. The results is the cash flow. This cash flow is determined to buy a certain amount of private funds. The difference between the amount the project can buy and what it needs to complete the proposed rehabilitation is the amount of subsidy that will be used in the project. This will be issued as a deferred loan The deferred loan is written at the time of closing and starts to accrue 1% annual interest which is repaid along with the principle upon the satisfaction of the lender's loan in monthly payments set at the loan origination. 5. Private Matching Funds - How will potential owners/investors match the RRP funds? X Investor/owner contribution X Local bank (If lenders are involved attach commitment letters or contract.) Other (Explain) The eight lender's have an agreement with the program (Please refer to Appendix D) that commits to a five year loan at 1.5% over prime and 2% over prime on ten and fifteen year loans. These loans are based on the property's positive cash flow after profit and overhead. Letters of commitment have been included under Appendix D. F. Construction Management - Identify staff and their experience managing and documenting the following requirements: 1. Eligible Repairs - How will work write ups be reviewed to make sure that: a) Repairs are cost-effective and eligible? Marvin Miller, Housing Rehabilitation Specialist will inspect the building and prepare a deficiency list. The investor will secure three bids from private contractors and the housing inspector will review these bids to see if they are cost feasible and complete. b) All HQS and local housing/model code deficiencies are repaired? Marvin Miller, Housing Rehabilitation Specialist will prepare a deficiency list that will specify all required 8 work needed to bring the building up to a Housing Quality Standard and remedy all building code deficiencies. The work is inspected periodically and upon final inspection, the inspector will certify that all work that was required has been completed. 2. Inspections - How will site visits be conducted to make sure that payments are warranted, well documented, and completed work will pass HQS and local building codes? The proposed rehabilitation work is paid :for by an inspection of approved completed work (Please refer to Appendix G). Upon request for the investor, an inspection is made and work is inspected and evaluated for completion and request for payment is filled out and signed by the investor, inspector and block grant manager. This payment request is taken to the lender for payment. The work proposedwas predetermined to request all work to be completed would address any HQS or building code deficiencies. 3. Federal Labor Standards - How will you ensure compliance with Federal Labor Standards and monitoring? Upon investor application, the project is determined to either qualify for compliance with the Federal Labor Standards by the number of units, or it is exempt. If there are 12 or more units, a letter to the U.S. Department of Housing and Urban Development (HUD) Labor Standards Office with a Request for Wage Determination is sent. (Please refer to Appendix H) This determination when received will be given to the investor for the application to the construction cost estimate. The contractor of the project will, be required to submit Payroll Form WH 347, Statement of Compliance and Contractor/Subcontractor Contract Agreement for all work completed. These payrolls will be reviewed and certified by the inspector. In addition an on site interview will be completed using Record of Employee Interview fonn with the employees on the job. 4. Bid Process - How will construction bids be ;awarded? Check one of the following and describe: Open competitive X Selected by owner X Other (Inspector Review) The investor is required to receive three bids from contractors or two if he is going to do the work with his own estimate of costs. These are reviewed by the inspector to certify that they are cost feasible to adequately complete the work outlined by the deficiency list. Upon certification, the investor will choose the contractor that he will use. 5. Non -Discrimination and Equal Opportunity - How will equal opportunity for MWBE contractors be encouraged and monitored? The Office of Housing and Neighborhood Conservation has a list of prequalified contractors that have identified minority contractors. The investors are encouraged to use this list when requesting bids for the construction costs. Upon contractor selection, the housing inspector fills out a field work sheet listing the contractor and upon progress inspection identifies the workers and subcontractors on the job. This field worksheet will identify the MWBE contractors and their work force. 6. Environmental Review - Answer a) or b): a) Returning contractors - Who will complete the Statutory Checklist for each RRP project and maintain file documentation? The inspector who does the initial project inspection will fill out the environmental review. (Please refer to Appendix 1) The results of this review will be included in the deficiency list. The block grant manager will sign the form determining the environmental impact of the project. b) New applicants • Who will complete the Request for Release of Funds and Certification Affidavit of Publication, Press Release, and Statutory Checklist for each RRP project? 10 Non applicable G. Program Schedule - Grant funds must be committed to eligible projects within fifteen months of award notification. Applicants must use the Program Schedule in Appendix F to outline their commitment of grant funds. Failure to commit funds within your schedule could result in the loss of the grant. Please refer to Attachment B H. Program Management and Compliance - Identify the lead person responsible for day-to-day program adminiistration, annual reporting requirements of HUD, and annual monitoring review by the state RRP Manager. Block Grant Manger, Dixie Kracht will be the person responsible for the overall management of the RRP Program. Housing Loan Specialist, Donna Reyes is responsible for investor applications, verifications, loan packaging and RRP documents. Housing Rehabilitation Specialist, Marvin Miller is responsible for all construction work. 11 w «t ■ tN K 0='1 MININ MINZ ` ■i■�j TIS.ma. �%I�i:'�■�, ��"� 41 MUM - p fir► r �'� Ir�:riiu�riiiirii_.•,_�,� gag r‘007alurerimmiuiu •1w a I "0--N 1 1 1 1 1 1 1 C ` ` • 1 beat Signed Owner Agreements (units) APPENDIX F I. CALENDAR/SCHEDULE FOR COMMITTING 1992 RENTAL REHABILITATION GRANT FUNDS 11/01/91 02/01/92 05/01/92 08/01/92 11/01/92 0/01/93 05/01/93 08/01/93 11/01/93 10___111 Grant Funds Obligated 50.000 25.000 25.000 Construction Starts: (units) 20 10 1Q Construciton Completion 20 20 Rehabilitated Units -Leased 20 _ 0 Appendix APPENDIX E CERTIFICATION REGARDING LOBBYING For Contracts, Grants, Cooperative Agreements, and Loans By signing and submitting this certification, the offeror/applicant, is providing the certification set forth below. A. The undersigned certifies, to the best of his or her knowledge and belief, that: 1. No federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to., influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. 2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form -LLL,"Disclosure Form to Report Lobbying," in accordance with its instructions. 3. The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. B. This certification is a material representation of fact upon which reliance was or will be placed when this transaction was/is made or intered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, N.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. C. Name of person or institution covered by this Certification: (Name) (Street Address, City, State, Zip Code) Solicitation/Application/Grant/Contract Number, and/or Program covered by this Certification: Signature of Certifying Official: Typed Name and Title: Signature (Original): Date: