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HomeMy WebLinkAbout87-065r Q .d~ 4~ ~ ~ ~ ="~ BOARD OF SUPERVISORS GOUNTY_OF LUTTE; STATE QF CALIFORNIA _ ftesolufion No. 87-65 RESOLUTION APPROVING AN APPLICATION FOR FUNDING FROM THE GENERAL ALLOCATION OF THE STATE COMMUNITX DEVELOPMENT BLOCK GRANT PROGRAM WHEREAS, the Board of Supervisors of the County of Butte has held a public hearing to consider the 1987-88 Community Development Block Grant Program. NOW, THEREFORE BE IT RESOLVED that the Board of Supervisors of the County of Butte has reviewed and hereby approves application for: Housing Rehabilitation $ 360,000 General Administration 40,000 Total $ 400,000 BE IT FURTHER RESOLVER that the Board of Supervisors has reviewed and hereby agrees to comply with all assurances executed in connection with the application and, if awarded, the grant. BE IT FURTHER RESOLVED that the Chair of the Board of Supervisors of the County of Butte is hereby authorized and directed to execute the application and statement of assurances, and the Director of Public Works is authorized and directed to act on behalf of the county in all matters pertaining to this application. PASSED AND ADOPTED by the Board of Supervisors, County of Butte, this 28th day of April, 1987, by the following vote: AYES: Supervisors Fulton, McInturf, McLaughlin, Vercruse and Chair Dolan NOES: None ABSENT: None NOT VOTING: None '~ )~OLAN, Chair of the to County Board of Supervisors ATTEST: MARTIN J. NICHOLS, Chief Administrative Officer and Clerk of the Board .{ l ,.. State of California BCE ~~~ CDBG Program pp 3 can GENERAL AND NATIV£ AMERICAN ALLOCATIONS APPLICATION SUMMARY FORM Page ~ of 2 la. APPLICANT: L] city [x7 County of s~E b. Department Board of Supervisors ,.,.., _ -- ,, . ~ f. Phone (916} 538-7651} c. Street/P.O. Box ?~~ C~~y ~ Dr. ~ _ g. Consultant/Other Public Agency City Droville Zi 95965 p Contact Person Steve W. Baker ' h• Connerlp & Associates, Inc. Address d. Applicant s Staff Contact Person William Chet'f 2.275 ?1st st., S~Cramento1 e. Title __Director of Public Works i. Phone CA 95818 (916} 456-4784 2. TYPE OF APPLICATION: a. [~] On Applicant's Own Behalf b. [] Joint Application: and c. [] On Applicant's Own Behalf and on Behalf of u. [] On Behalf of State Senator Member of Congress - District Number 4 District Number 2 Name Jim Nielsen Name Wal1.Y Berger Addressl074 East aVe., Ste. N Address 20 Declaration Dr., City Chico, CA 95926 City Chico, CA 95926 District dumber District Number f. [] For Two Funding Cycles g. [,~ For Funding from the General CDBG Allocation h. [] For Funding from the Native American Allocation in the Following Jurisdiction: e. [~ Far One Funding Cycle 3. LEGISLATIVE REPRESENTATIVES: Member of the Assembly a. District Number 1 b. Name Stan Statham c. Address S ate Ca itol d. City Sacarmento, CA 95814 District Number 3 ..Name Chris Chandler Address 1227 Brill a St., Ste. city Cuba city. CA 9599]. District Number Name { Address City Name Only ~ Address Gity -21- Name Address Gity #5 CDBG/04-1.19 • f 4. ACTIVITY TITLES ANO FUNDS REQUESTED: 1. Housing Rehabilitation 2. Countywide Housing RehaE~ilitation 3. General Administration 4. Total 5 4ao,ooa 5a. APPLICATION CHECKLIST: ~ Application Summary Form [~ Lotal Data Form ~ Needs Statement Form [~ Program Narrative Form b. ATTACHMENTS: [~ Maps of Jurisdiction Showing All Required Information (location and project site maps} C~ Resolution by Governing Body Approving Application [] Additional Data (if applicable) 6a. Has applicant enacTed limitations on residential construction [x] no [] yes which are not establishing agricultural preserves, not imposed by another agency, or not based on a health and safety threat? b. If the answer to 6a is yes, is the housing element approved by [] no [] yes the Department? ~ Activity Description Form ~] Activity Budget and Schedule Form ~] General Administration Activity Form [] Prag-ram Budget Summary Form [] Statement of Assurances [] Letters Received and Responses (if applicable} C] Joint Powers Agreement (i f applicable ) [x] Letters of Intent or Commitment (if applicable) Page 2 of 2 $3bO,0a0 Funded b' Program In<came 40,00Q c. If the answer to bb is no, is the application for low income [] no [] yes housing? 7. OFFICIAL AUTHORIZED TO SUBMIT APPLICATION: Name Ti t l e Chaa.r Signature Date APR 2 ~ 1981 4 ..2~.. cDBG~oa-I.2o t Page of STATE OF CALIFORNIA COMMUNITY DEVELOPMENT $LOCK GRANT PROGRAF? STATEMENT OF ASSURANCES The ~~~~yCounty of hereby assures and certifies that: (a} It possesses Tegal authority to apply for~`the grant, and to execute the proposed program. (b) Its governing body has duly adopted or passed as an official act or resolution, motion, or similar action authorizing the filing of the application, including all understandings and assurances contained therein, and directing and authorizing the applicant's chief executive officer or other designee to act in connection with the . application anc~ to provide such additional information as may be required. (c) It has or will comply with all citizen participation requirements, including: 1. One puhlic meeting each during program design, performance report preparation and any amendments. 2. One public hearinc prior to application suhmittal. 3. Th? availability of program information during normal working hours anc! solicitation of written comments. ~. The estimated amount of ft,nds proposes' to be used for activities henefiting low- and moderate-incor~e persons and plans to minimize displacement as a result of activities and plans to assist displaced persons. (d) Its C€~BG Program has been developed so as to primarily benefit targeted income persons and households, and each activity in that program meets one of the three nationa3 objectives: benefit to low and moderate income persons, elimination of slums and blight, or meets an urgent community need certified by the grantee as such. (e) It consents to assume the responsibilities fir environmental review and decision-making in order to ensure compliance with NEPA by fallowing the procedures for "recipients" of block grant funds as set forth in 24 CFR, Part 58, entitled "Environmental Review Procedures for,Title I Community Development flock Grant Programs." Also included in this requirement is compliance with Executive Order 119gR relating to the evaluation of flood hazards, and Section 102(x) of the Flood Disaster Protection Act of 1973 (Pub. Law 93- 234} regarding purchase of flood insurance, and the National Historic Preservation Act of }966 (1'6 USC 47D) and implementing regulations (3F CFR 80(1.8). -S7~ (f} It consents to assume the role of either "Lead Agency" as defined by`' Section 21067 of the California Public Resources Code, or if another agency is or will be designated "Lead Agency," it consents to assume the role of "Responsible Agency" as defined by Section 21069 of the California Public Resources Code, in order to ensure compliance with CEQA. (g) It has resolved any audit findings or performance problems for prior CDBG grants awarded by an urban county'; by HUD under the Small Cities Program, or by the State. (h) It certifies that there is no plan, ordinance, or other measure in effect which directly limits, by number, the building permits that may be issued for residential construction or the buildable lots which may be developed for residential purposes, or if such a plan, ordinance, or measure is in effect, it will either be rescinded before receiving funds, ar it need not be rescinded because: 1. It imposes a moratorium on residential construction, to protect the health and safety, for a specified period of time which will end when the public health and safety is no longer jeopardized; or 2. It creates agricultural preserves under Chapter 7 (commencing with Section 51200) of Part 2 of Division 1 of Title S of the Government Code; or 3. It was adopted pursuant to a specific requirement of a state or multi-state board, agency, department, or commission; or 4. The applicant has a housing element which the Department of Housing and Community Development has found to be adequate, unless a final order has been issued by a court in which the court determined that it is not in compliance with Article 10.6 of Chapter 3 of Division 1 of Title 7, of the Government Code; ar 5. The use of the funds applied for in this application is restricted for housing for the targeted income group, (i) It will comply with the regulations, policies, guidelines, and requirements of OMB Circular Number A-87 and the State CDBG regulations. (j) It shall comply with the 1. Title YI of the Civil following regarding nondiscrimination: Rights Act of 1964 (Pub. Law 88-352). 2. Title VIII of the Civil Rights Act of 1968 (Pub. Law 90-284} as amended; and will administer all programs and activities related to housing and community development in a manner affirmatively furthering fair housing. -58- -~.~ 3. Section 109 of the Housing and Community Development Act of 1974, as amended. a. Section 3 of the Housing and Urban Development Act of 1968, as amended. 5. Executive Order 11246, as amended by Executive Orders 11375 and 12086. 6. Executive Order 11063, as amended by Executive Drder 1.2259. 7. Section 504 of the Rehabilitation Act of 3.973 (Pub. Law 93-112), as amended, and implementing regulations. 8. The Age Discrimination Act of 1975 (Pub. Law 94-135). 9. The prospective contractor's signature affixed hereon and dated sha11 constitute a certification under the penalty of perjury under the laws of the State of California that the bidder has, unless exempted, complied with the nondiscrimination program requirements of Government Code Section 12990 and Ti tie 2, California Administrative Code, Section 8103. {k) It wi11 comply with the State Relocation Larf (Section 626D of the Government Code) and the Relocation Guidelines (25 Cal. Adman. Code, Chapter 6, et seq.). (1) It will comply with the following regarding iahor standards: 1. 5action 110 of the Housing and Community Development Oct of 1974, as amended. 2. Section 1720 et seq. of the California Labor Code regarding public works labor standards. 3. .Davis - Bacon Act as amended (46 11.S.C. 276a} regarding prevailing wage rates. 4. Contract Work Hours and Safety Standards Act {40 USC 327-333) regarding overtime compensation. 5, Anti-Kickback Act of 1934 (18 USC 874) prohibiting "kickbacks" of wages in federal Ty assisted construction activities. (m) It wi11 comply frith the Architectural Barriers Act of 196E (42 USC 4151) and implementing regulations (24 CFR Part 40-41}. (n) It will enforce standards of conduct which govern the performance of its officers, employees, and agents engaged in the administration of contracts funded in whole ar in part by the CDBG Program (Section 7120(d) of the State CDBG regulations). -59- a i (o) It will comply with the Hatch Act (5 1fSC 1501 et secy.) regarding political activity of employees. - ~p) It will comply with the Lead~Based Paint Regulations (24 CFR Part 35} which prohibits the use of lead-based paint on projects funded by the program. ~q) It wZli not employ, award contracts to,. or otherwise engage the services of any contractor while that contractor is in a period of debarment, suspension, or placement in ineligibility status under the provision of 24 CFR Part 24. (r) It wig] give HUD, the Comptroller General, the State Department of Housing and Community Development, ar any of their authorized representatives access to and the right to examine al] records, books, papers, or documents related to the grant. (s} It will not attempt to recover any capital costs of public improver~ents assisted in whole or in part with CDBG funds by assessing properties owned and occupied by targeted income persons unless: (A) CDBG funds are used to pay the proportion of such assessment that relates to non-CDBG funding or; ~B} for the purposes of assessing properties owned and occupied by targeted income persons who are not of the lowest targeted income group, it does not have sufficient CDBG funds to comply with the provisions of (Q) above. The certification is made under penalty of perjury under the laws of the State of California. CERTIFYING OFFICIAL; Print APR 2 II ~9II7 Date '_nature~ - J n ^ `_ :e of California A Data Item Bi7'r'1'~ Cowry CUBG Program App scant &ENERAL AND NATIVE AMERICAN ALLOCATIONS LOCAL DATA FORM Page ]. of 2 1. housing Units {37,738) a. Total housin units 36,927 b, o Iota Dosing unit 8.84 vatant g,28 ~ B C Check here if using If not using data supplied by data the Department, enter the suppiied~~ source used to obtain the data by the item and the date the data was Department published. 1984 {Dept. of Finance) 1980 Census c. of housing units delap- idated and not suitable ,g % for rehabilitation o ous~ng un~ s 5u~t- 10~~. able for rehabilitation 5 % 2. RII tiousehald5 a. Total households 5 (34,396) 31,200 b. % of owner households 62.6 % ~ x c. ~ of total households overcrowded 3 -~.~% ~ x d. % of total households with household head 55 or older 23 % x argeted Income Group Dose o ds a. # of renter households in 5,134 *See note targeted income group b. ~ of targeted income group renter households paying more than 25~ of income fo r 80 % x rent c. -# of owner #~ouseholds in targeted income group 4,698 See note d. ~ of targeted income group owner households paying more than 25~ of income for 47 ~ x _, housing ., ,~_..,,... ..~ -29- 1980 Census 1975 Special Census *See note. 1975 Special Census (1984 Dept. of Finance) 1980 Census CDBG/04-1.24 COTE These figures underestimate the actual number of households, because the number of targeted renter and owner-occupied households was calculated from 1980 Census data, which excludes from the count: mobilehomes- single-family units on parcels of 10 ar more acres, residential/carranercial or residential medical mixed use, units at an address with two or mare units, and condominiums. In aggregate terms, the 19$0 Census shows that 18,761 {60$) Butte County households are below the 51,750 income limit; however, summation of the number of targeted renter and owner-occupied households shown on the local data form will not yield the same result. State of California L~`E ~~~~ CDBG program pp scant GENERAL AHD HATIYE AMERICAN ALLOCATIO~fS ~iEEDS STATEMENT FDRM page ,.-.,_, of 1. Briefly describe and document the serious and basic housing needs: SEE FOLLOWING PAGES 2. Briefly describe and document the serious and basic economic development needs. SEE FOLLOWING PAGES 3. Briefly describe and document the serious and basic public facilities needs: SEE FOLLOWING PAGES 4. Briefly describe and document the other serious and basic needs: SEE FOLLOWING PAGES -33- CDBG/D4-1.27 BUTTE COONTY NEEDS STATEMENT 1. Briefly describe and document the serious and basic housing needs. The unincorporated portion of Butte County contains a number of areas with high concentrations of substandard housing. Many of these neighborhoods are contiguous to and economically integrated with incorporated cities--Chico, Oroville, Paradise, Biggs, and Gridley; however, they have significantly poorer housing conditions and higher incidences of low-income hauling conditions and higher incidences of low-income households than their incorporated counterparts . Butte County also has a number of small, rural communities in which the housing stock is old, and, in many areas, substandard. Surveys show that a large percentage of these residences have serious structural plumbing, and electrical deficiencies. In Stirling City a 1 o ne , 4 4 $ o f the housing stock in need of rehabi 1i tation requires substantial rehabilitation to correct hazardous health and safety violations. Sewage and septic inadequacies leading to plumbing deficiencies combined with other defects are a predominant cause of a reduction in the city's housing stoc',~ due to unsanitary living conditions. In the last two years,, twe o have been condemned by the Butte Count De lv` homes in Stirling City Y partment of Health. Mobilehames, many of them predating current standards, also are typical of rural Butte County. pften these mobilehomes have substandard additions and attached porches, many of which were constructed without building permits. Surveys here indicate that many mobilehome owners experience leaking roofs, and deteriorated flooring due, in part, to the mobilehomes pat being p~_aced on permanent foundations. Data from the 1980 Census for uninr~orparated Butt County show that 60g of all housei~alds had incomes below $14,150 {8Q~ of the County's mAd i an income) . While these targeted households are nearly e~>enly distributed between renters and owners, 8d~ of targeted renter households are overpaying for their housing compared with 47g of targeted owner households. The 198Q Census also indicates that 3.52$ of housing i,n Butte County are overcrowded. The linkage between substandard living conditions and annual incomes below the County median, similarly, is evident from household characteristics surveys which included questions pertaining to interior housing conditions. In Stirling City, 100 of owner-occupants below $p$ of County median responding to the housing conditions portion of the household characteristics survey noted minor to severe deterioration in their homes. The predominant deficiencies in Stirling City were plumbing and foundation problems. In Palermo, homeowners who responded to the survey noted roof and hazardous electrical wiring as their most critical home repair need. A Special Census, conducted in 1975, the last official Countywide survey of housing conditions, estimated that 5.5$ of the housing stock was deteriorated but suitable for rehabilitation, and nearly l~ of the dwelling units was dilapidated beyond repair. The 1975 Special Census, however, seriously underestimates the- extent of substandard housing in the County. Altha ugh a comprehensive Countywide survey of housing conditions has not been performed since the 1975 Special Census, documentation from housing condition surveys in specific communities and neighborhoods which have been conducted in the last twelve months show the percentage of substandard housing in unincorporated Butte County to be in excess of 10~. This estimate is substantiated by interior inspections by the Health and Building Departments. The largest identifiable pockets of substandard housing are in the Chapmantawn neighborhood (Southeast of Chico) and El Medio (South O ra ville) adjacent to Chico and Oroville. Low-income homeowners in these communities have benefitted considerably from the loans and grants Butte County has been able to make through the Community Development Block Grant housing rehabilitation program. Communities with significant amounts of substandard housing which are not contiguous to a City include Stirling City, Palermo, Dayton, Thermalito, and Nord. While the concentration of substandard housing is lower, housing condition surveys show that the degree of deterioration of dwelling units is substantial. 2. Briefly describe and document the serious and basic economic development needs. The mast dramatic evidence of Butte County's economic development needs is its chronically high unemployment rate. Arcordinq to the State Employment Development Department in Febraary 1987, the unemployment rate was I0.8~ countywide in comparison to a 6.7~ rate statewide . Wh i 1 e countywide unemployment has registered between ~ to 5 Percentage points higher than the statewide rate over the past three years, some areas in the County, specifically proville, Biggs, and Gridley, have had unemployment rates consistently between $ to 12 percentage points above statewide averages. Butte County's Overall Economic Development Plan, (1980) indicates that the worst unemployment problems in the County are related to the seasonal employment periods and the lack of employment opportunities for low-s]:illed workers. Historically, Butte Cou.nty's economy has been based primarily on agricultural activities, including forestry. In recent decades, the retail, commercial; and service sectors have expanded in response to the needs of a rapidly growing population; however, industrial development has lagged behind. Because industry ~.n Butte County is closely linked with agriculture and timber production, its employment is similarly cyclical. Given the need to mitigate high unemployment among low-income and 1o w -skilled workers, it is important that Butte County diversify its economy to provide needed employment opportunities. Potential avenues of diversification are industrial, recreational, and tourism development; however, industrial development offers the greatest potential for accommodating the needs of low-skilled workers. The lack of public improvements and utility infrastructure in designated industrial areas, however, Doses a significant constraint to this economic development option. 3. Briefly describe and document the serious and basic public facilities needs. Butte County's most pressing public facilities needs are those involving services to rural residential areas. Tn general, most urbanized areas in the unincorporated County are adequately equipped with infrastructure; however, there remain a few isolated communities where unmaintained streets, poor drainage systems, and antiquated or inadequate sewer systems threaten the health and safety of residents . These poorly serviced areas generally coincide with the neighborhoods in the County identified as having serious housing needs. A local survey of Stirling' City where residents rely entirely on private septic systems for waste disposal, revealed that approximately 44~ of the households are experiencing some type of septic tank-related problem. The State Department of Water Resources has identified a number of sites with high nitrate concentrations in the Chico urban area. These high concentrations are caused in large part by septic system leaching. The County and City have adopted a Nitrate Action Plan which limits density of new unsewered developments and which will eventually require new major drainage systems and expansion of the existing sewer system. The severity of the flooding and leaching problems throughout Butte Cau my requires that immediate attention be focused on the provision or upgrading of sewer facilities and street and drainage systems in accordance with fundamental health and safety standards. 4. Briefly describe and document the other serious and basic needs. Na other serious and basic needs have been identified in Butte County at this time. State of California BUTTE COUNTY C D S G P r o g r a m Applicant GENERAL AN€} NATIVE AMERICAN ALLOCATIONS PROGRAM NARRATIVE FORM Page of ~~ 1. Describe the proposed program, including which identified need(s) are addressed and why the program was selected. SEE FOLLOWING PAGES 2. Briefly describe how all other identified needs ;rill be addressed. SEE FOLLOWING PAGES 3. Describe Iota] land use policies and other local activities that could positively or adversely affect the program. SEE FOLLOWING-FAGES -37- CDBG/04-1.29 PROGRAM NARRATIVE FORM 1. Describe the proposed program, including which identified needs are addressed and why the program was selected. The County's proposed program consists of rehabilitation activities in the communities of Stirling City and Palermo. In past County housing rehabilitation programs funded through the State Community Development Block Grant. the County's strategy has been to target CDBG funds for the two areas in the County with the greatest concentrations of low- and moderate-income households and substandard housing. Those communities have been Chapmantown and El Medio. While both areas still have significant need, they have been target areas for CDBG funding in recent years. The County, therefore, believes that it is appropriate to offer assistance to other areas of the County with significant needs which have not been served in the past. The Community of Stirling City was chosen because it has a high concentration of deteriorating housing and a significant number of low- and moderate-income households. Residents in Stirling City, moreover, are plagued by sewage disposal problems caused by inadequate, old septic systems. Palermo, the County's second proposed target area, has a high percentage of mobilehomes on individual lots and in small mobilehome Darks in addition to a substantial number of substandard frame Houses whose owners havd incomes below 80$ of County median income. The rehabilitation program in 5tir.ling City and P~:lermo has several components to meet the varying needs of owners of property in those communities . A 1 a rg e portion of elderly owner-occupants are an a fixed income less than 80~ of County median income. 4f the elderly owners in Stirling City, 26~ have incomes below 50~ of County median - z n Palermo , 56~ of elderly owner-occupants also are below 50$ of County median income, To mQet the needs of this group, the County plans to offer grants of up to $5,000 and, on proiects requiring over $5,000 in repairs, deferred loans at 3$ interest, Most of the non-elderly owner-occupants in both Stirling City and Palermo have incomes between 50~ and 83$ of median income, so loan repayment for most households, is feasible. The County plans to offer loans at 3$ interest payable over 15 years. For households where monthly payments are not affordable, the loan term will be extended for up to 30 years and/or a portion of the loan will be deferred. Owners of rental property also will be assisted with loans of 4~ interest amortized over 15 years, To maintain affordable rent levels, the owner will be required to enter into a rent limitation agreement, separately recorded, to guarantee affordable rent for five years. 2. Briefly describe how all the other identified needs will be addressed. As noted in the needs statement, a substantial number of Butte County residents outside the communities of Stirling City and Palermo have substandard living accommodations. To accommodate this need, the County uses program income from closed CDBG programs to operate an Emergency Home Repair program in which loans and grants of up to $5,000 will be available to low- and moderate-income residents. Typically, such emergency repairs are roof work, electrical wiring repairs, and other immediate hazards. The Emergency Home Repair program will be funded by approximately $40,000 generated from repayment of past CDBG loans. T o a d dre ss the chronically high level of unemployment the County is applying for funding under the Economic Development set-aside for gap -financing to assist in starting a business incubator program on the former Chico--San property in Chapmantawn to foster new business opportunities in the community. Th e C o u my h as received the completed master sewage plan and nearly completed drainage plan for the Chico Urban area from the consultant on this project. A consultant also has been hired to prepare the financial plans for implementing the two public foci lities plans in th e Chic o area. The serious sewer and drainage problems as well as the high nitrate concentrations in the Chico Urban Area will be alleviated when the County is able to secure funding to exrsand their existing sewer system and improve the drainage system in these communities. In Palermo, a plan exists to provide sewers in the community. Frequent flooding and drainage problems in Palermo community cause malfunctions in septic tanks. Lack of funding, however, has delayed implementation of this project. Describe local land use policies and other local activities that could positively or adversely affect the program. Butte County is taking several actions at the lor_al 1?vel in support of the program: waiver_of_Inspection_Fees The Caunty normally charges $50 for inspection of a home to determine deficiencies which require repair to bring the house in compliance with the Uniform Housing Code. The County will waive th i s f ee f o r all units participating in the CDBG and Emergency Hame Repair programs, The decreased cost to program participants is estimated to be $1050 ($50 multiplied by 21 units). The inspection and the resulting report allow the rehabilitation projects under the CDBG program to be "fast-tracked" through the County's permit process since the pre-inspection has already identified all deficiencies which require repair. In-Kind Services The C aunty is providing the following services without charge to the CDBG program: * Receptionist services for answering local phone * Office space for consultant, including phone use The County is not aware of any local land use policies, actions or activities which would adversely affect the program. Currently, the school districts which encompass each target area have not adopted school impact fees. If such fees are adapted in the future, individual rehabilitation projects which involve expansion of the dwelling could be adversely affected if such fees apply. Based on survey data and the County's rehabilitation guidelines, such fees, if imposed, are not expected to have a significant impact on the overall program. Program Implementation Butte County's CDBG housing rehabilitation consultant, Connerly & Associates, Inc, has, since 1974 administered or assisted in administration of past CDBG grants under the direction of the Butte County Board of Supervisors and in cooperation with the Department of Public Works, Planning Department, Auditor's Office, and Building Inspection Division. This arrangement allows the County to maintain direct supervision over all rehabilitation activities, including pre-inspection for code compliance by the Building and Health departments of each residence prior to loan committee approval. implementation of housing rehabilitation activities, however, as the function of the consultant whose responsibilities include: * Overall administration of the program including; liaison activities with the Department of Housing and Community Development and the Butte County Board of Supervisors; coordination of rehabilitation activities with County departments; preparation of monthly reports; and coordination of the program audit . * Coordination of the housing rehabilitation programs including: community outreach; program marketing, loan/grant processing; preparation of loan documents; establishment and coordination of escrow accounts; facilitation of contractor bads and monitoring construction. The County Planning Department wall be responsible for conducting the envi ronmental review and preparing the necessary environmental documentation. The County Building Inspection Division will conduct pre-inspections for code compliance of houses under consideration for rehabilitation through the County CDBG progra;n. The County Auditor's Office will be responsible for preparing monthly financial information, requesting drawdown of funds, and disbursing funds for prragram activities. T h e C e ntral Collections Department will continue to collect payments fro m past borrowers under the CDBG program and will collect payments an new loans the County makes to program participants. The Public Works Director will act as manager of the contract between Butte County and Connerly & Associates, znc. and will perform other administration and coordination duties for the program. Additionally, the office of the Public Works Direr_tor wi11 serve as a reception area for local processing of CDBG loan/grant information. State of California ' BU3~I`E COUNTY C D B G P r o g r a m GENERAL ANG NATIVE AMERICAN ALLOCATIONS can ACTIVITY DESCRIPTION FARM Attach onE -form for each activity. Page of 1. Activity T i t l e; Housing Rehabilitation ~~ . Activity Number: 1 2. Eligible Activity Section [umber: 7p5g a "~` . ED0554r 3. CDBG fonds requested for this activity $ 350,000 ID0554i3 4. 1980 Census Tract Dumber s Eo0555 { } 0,„7_,,,`1980 En~,meration District Number{s} ~_ S. Which national objective does this activity further? „~x slum/blight removal ~~low income benefit ur ent need ~. 9 6. Total number of households to benefit: 2l 7. Total number of households in targeted income group to benefit: • 21 8 Total number of households in lowest targeted income group to benefit:i~ 9. Detailed activity description. ~' SEE FOLLOW2NG PAGES 10. Potential environmental problems. This activity should be exempt frarn CEQA rima and categorically excluded under NEPA at th p e ry or secondary compliance ].eve].. No significant environmental impacts are anticipated_ li. Identify other funds which will be grant period. committed to this activity during the A. Federal Amount Sow ce 5 000 ) B . 5 t a t e $ ~ (Farmers Home Ac1~ni ninstratio~ C. Local $ I3. Program Income t.hi s CDBG Grant E. Program income from Closed $ $,000 CDBG Grant $ F. P r i v a t e * TOTAL ~ See below *Cornmunity Action Agency d -43- CDBG/04-1..34 BUTTE COUNTY ACTIVITY DESCRIPTION 9. DETAILED ACTIVITY DESCRIPTION The rehabilitation program has been designed to meet the needs identified in surveys conducted in April 1987 in Stirling City and in March 1987 in the community of Palermo. The proposed housing program, designed to correct health and safety deficiencies in low-- and moderate--income households complements similar programs which have improved housing accommodations fog low- and moderate-income residents in the E1 Medio and Chanmantown communities. As described in the needs statement, Stirling City has a high percentage o f homes with violations of the Uniform Housing Code and County Health Department Standards. Overall, 56$ of the houses in the proposed target area have housing code violations. The majority o f v i of a t i an s (4 6 ~) are serious structural problems often combined with plumbing deficiencies linked to septic system inadequacies. Three percent were judged to be infeasible to rehabilitate. Only _ of these substandard dwellings were vacant. Twelve units have been condemned by the County Building and Health Departments in the past 24 months. A door-to-door survey of houses in Stirling City in need of rehabilitation show that 78~ of the houses for which resoanses were received were owner--occupied, and 17~ were rentals. Ninety percent of owner-occupants responding had household incomes below 80~ of County median income. One-half of those owners had household incomes below 5 0 ~ of County median income. Forty-two percent of owners were over 60 years old, and 50~ o£ renters were over 60. Sixty-five percent of the elderly identified were under 800 of County median income, over one-fourth (26~ } of elderly had incomes below 50$ of County median income. Eighteen percent of owner-occupants had at least one disabled person in the household. Sixty percent of owner-households with a disabled family member had incomes below 50~ of County median income. Among renter-households, 100 earned less than 80~ of County median. Eighty-three percent of renters were also at income levels below 50~ of County median. In the Palermo area, nearly 70~ of the dwelling units in the proposed target area are i.n violation of the Uniform Dousing- Code. V i o 1 a t ions were mare evenly distributed between the three categories with 32~ identified as minor, twenty percent identified as moderate, and l6~ identified as major rehabilitation projects. One percent of these (3 units} were judged infeasible to rehabilitate because of the advanced degree of deterioration. A door-to--door survey of the units in Palermo in need of rehabilitation was conducted in March 198'7. following up on a survey conducted by Connerly & Associates, Inc. staff in 1986. Sixty-two percent of Palermo households in need of repair responded to the questionnaire, 71$ of those responding were owner-occupants, 28~ were renters. Seventy-two percent of owner-occupant households earned incomes below 84$ of County median. Forty-seven percent of those owner-occupants had incomes below 54$ of County median income 1 e vel s , Z n Pa 1 e rmo, 56$ of owners are over 64 years old, Eighty-seven percent of elderly owners received incomes below 84~ of County median. Fifty-six percent of the elderly on fixed incomes, received support below 50~ of County median. The survey results show different groups of households with different assistant needs. Elderly owner-occupants ' Tn Stirling City, ~2$ of the dilapidated owner-occupied units had a head of household over 64 years of age, and 94~ of these had incomes less than 84~ of median income. Tn Palermo, the head of household was over 50 also in over half {56~) of the owner-occupied units, and 47$ of these also were below 54$ of median income. Most of these households survive an fixed incomes in which the only regular income is Social Security. Generally, the ability of these owners to make loan payments is limited. At the same time, monthly income is not sufficient to pay far home maintenance. Based on discussions during the household characteristics surveys and experiences in other communities , many elderly home owners are reluctant to take out any tYPe of loan, even a deferred- loan, in spite of serious hpu5lnq deficiencies which threaten their health and safety, One major concern of this group is that they could lose their Name as a result of taking out a loan, as many experienced durincr the Depre5SlDn. Another is that upon their death, their. heirs will. ~e forced to sell the house to pay off the loan. Many elderly owner-occupants are uncomfortable 1 i vi ng with debt, and prefer not to leave financial obligations such as a home repair loan, to their heirs. Overcoming this resistance to loans represents a substantial marketing problem. Recognizing this obstacle, the County began o f f e r i nq grants of up to $ 5 , 040 in the Chapmantown program to insure that these households also received assistance for health and safety repairs. The program was successful in obtaining participation from elderly households which previously had declined to narticirate. Believing this to be a facto: which also may affect participation in Stirling City and Palermo, the County intends to offer grants of up to $5,444 to households whose head of household is over 64 years of age and on a fixed income which is less than 54~ of median income based on household size. For households which require more than $ 5 , 4 0 4 worth; of work to make the structure habitable and up to code, 3$ deferred loans, due upon sale or transfer of title of the property, will be offered. Households whose sole income earner is permanently di sabled who fall into the same income category may be e l i g i b l e on a case-by-case basis upon approval of the loan committee . Grants offered through the County's housing rehabilitation program will have a recapture provision with 140 of the grant recaptured if the house is sold or transferred within three years; if the house is sold or title transferred within five years repayment will be pro-rated (See Appendix ) . Grants over $2,444 will be secured by a deed of trust. All Grants will be fully forgiven if sale or transfer is due to borroweris) death. Non-Elderly Occupants Most of the non-elderly owner-occupants have an income between 50~ and 80~ of median income, therefore, most should be able to make at least some monthly payment. To meet the needs of this group, loans amortized over 15 years at 3$ interest wi11 be offered. In cases where repayment of the loan is a serious hardship, the loan term wi 11 be extended for up to 3 0 years and/or a portion of the loan will be deferred until sale or transfer' of title of the property. Given the high costs for repairing some of the units, the extension of the loan term or deferral of a portion of the loan is expected to be necessary for a substantial portion of this group. Rentals According to the local survey data, 100$ of the renters in Stirling City and 75~ of the renters in Palermo Living in substandard residences earned below $0$ of median income. A substantial portion of renters in both communities also fell below 50$ of County median. Since affordability to the tenants over the long term is the measure of success for a rental rehabilitation praaram, the design pf tizis program is intended to enable owners of investment property to maintain affordable rents while making a fair (not wind fall) profit on their investment. The County will offer 4~ loans up to payable o~~er 15 years to owner-investor. In exchange for a subsidized, low-interest loan, the owner-investor will enter into an agreement which limits the rent to a level affordable to a low- and moderate-income household for five years. (See Appendix ) . In order to comply with state law, the rent for the first year. could not be raised if it would result in the tenant paying mare than 25~ of grass income for rent. The rent limitation agreement will be recorded separately from the deed of trust. Communit Outreach The consultant will implement a comprehensive outreach program to make owners of property aware of the program and the types of financial assistance available, The outreach will be phased in over time to ensure that funds are targeted to those who most satisfy program ob3ectives and also to avoid possible backlogs due to processing a large number of applications at once. Owner-occupants will be notified upon completion of the environmental review and receipt of authorization from HCD to proceed. The consultant will: * Prepare and distribute a public information bulletin on the program to all appropriate publications, and radio stations. * Prepare advertisements for inclusion in local newspapers and/or shopper bulletins. * Send a brochure explaining the program to all owner-occupants. * Canvass door-to-door to dilapidated owner-occupied homes. * Frovide information ta, and meet with, neighborhood groups, service organizations, and government agencies active in the area which provide services to law- and moderate-income households. Support by and referrals from these organizations are critical to a successful rehabilitation program. * Hold at least two public meetings at a neighborhood location in the target areas after the publicity. It is anticipated that the majority of the applications will result from these last three activities, building on the earlier publicity and survey efforts. A special effort will be made to contact elderly homeowners who often are less mobile and non-english speaking home owners who may not understand the brochures and advertisements . Marketing to owners of investment (rental? property also will occur. T etters explaining the program wilt be sent to the owners of rental property according to the county tax rolls. The County additionally will, provide public service announcements to the local media, since many of the owners of rental property may be located in nearby communities. A meeting with the local Board of Realtors will be arranged to explain the program to them and to identify ways in which the program may be beneficial to individuals purchasing properties in the target area which need repair. A special effort will be made to contact the owners of vacant, dilapidated housing in the target area to discuss the program and to encourage their participation. In addition, special efforts will be made to contact the owners of property which have been identified by the County Health Department in the past as in need of repair. Contractor Outreach A su PP1Y of local contractors experienced in housing rehabilitation is essential for the success of the program, A list of contractors who are interested in the program will be created as a result of placing advertisements in local newspapers and notices in local builders exchange letters, and posting notices at the local contractors exchange board informing contractors of the program, Information about the program will also be sent directly to local contractors . In Butte County, licensed contractors generally are f ami 1 i a r with the CDBG program and many have been employed on CDBG- financed rehabilitation projects. Contractors interested in the program will be asked to give information about their license, credit, insurance, subcontractors, and past work, Contractors' names and license numbers will be submitted to HCD to verify that their licenses are current and in good standing and that the contractor is not on the federal list of debarred or suspended contractors. Background information is on file fnr all of the contractors involved in past CDBG programs. Updates of licensure and the required liability insurance will be requested. ?rocessin A lications _-....._»_3~P.L_~..___-- The consultant will be responsible for processing loan applir_ations and preparing descriptions of rehabilitation work to be done on eligible properties. In order to accurately identify all health and safety violations which should be repaired, the unit will be inspected by the building inspector prior to obtaining contractor's bids. Once the work description is approved by the homeowner and the homeowner's eligibility is verified, the consultant, in cooperation with the owner will secure bids from contractors, unless the owner is acting as an owner-builder. After a contractor is selected and a bid price is set, loan committee approval to proceed with the project will be requested Once the loan committee approves the request, the necessary agreements (See Appendix _) and forms are prepared requesting that appropriate funding be placed in a construction escrow account and authorizing the execution of the loan documents. The consultant will be responsible for monitoring construction progress and authorizing progress payments from escrow. NUMBER OF DNITS ASSISTED The City estimates that a total of 2l can be assisted under this program. The average cost per unit is estimated at $15,000,00, based on the cost estimates in Appendix ~~ The average moderate rehabilitation project is estimated to be $12,000 and the average major rehabilitation is estimated to be $20,000 (see Appendix ). The breakdown of financial assistance is expected to be approximately as follows: Elderly Owner-pccupants grants at $5,000 Funds grants at $5,000 with deferred loans ~' at 3~ including 2 moderate rehabs at an average of $6,000 ~n 3 major rehabs at an average of $16,000 $ Non-Elderly Owner-Occupants loans at 3~ (amortized or defe rred) including moderate rehabs at an average of $10,000 and major rehabs at an average of $20,000 $ Owner-Investor loans at 4$ interest including moderate rehabs at an average of $10,000 and major rehabs at an av?rage of $20,000 $ TpTAD FUNDS $ 1. CDBG funds plus all other funding sources. LEVERAGING FONDS In addition to CDBG funds, the County intends to utilize funding/ ser~rices totaling from the fallowing sources Weatherization Fundsl - Communi~ctian Agen~(CAA) The Community Action Agency prosrided a number of free weatherization services funded by a which average approximately _ per unit (See Appendix ). The County of Butte plans to refer all program applicants wT~o have not already participated in the weatherization program to CAA. As described in the letter of commitment (Appendix ) it is anticipated that CDBG assns ted units will quali y for weatherization services. Therefore, a total of approximately will be used to leverage CDBG funds. Farmers Home Administration FmHA) Butte County is eligible far both 502 and 50~ FmHA Home Improvement Loans designed to assist very low income households. According to the Housing Survey conducted in Palermo and Stirling City {gee Appendix __) , 50~ of all owner households residing in units in need of repair have an income below 50~ of the median income. Eighty-three percent of renter-households with incomes below 50~ of County median also are in need of rehabilitation. FmHA funds are available only to owner-occupants, however, which limits their application. According to FmHA, the average cost per unit allotted is $5,000.00. Due to the limited resources available from FmHA (approximately $900,000 statewide unknown for 1988) and the differing program administration procedures, Butte County is hesitant to count on FmHA funds to compliment CDBG funds. Butte County will refer applicants to FmHA, however, to allow them to choose the most advantageous financing package available, The County anticipates at least one CDBG funded unit will utilize FmHA funding, equaling $5,000.00. Use of Program Incomes The County plans to continue to have an emergency home repair program i n which grants and loans of up to $5, 000 will be available for low- and moderate-income owners for such emergency repairs as roof work and electrical wiring. In-kind Services Butte County intends to offer pre-inspections of houses proposed far rehabilitation, receptionist services, and office space in support of the CDBG program at no cost. As described in the rpsolutian {See Appendix ) prepared by the County, in-kind services are estimated to equal: $5, 300. These local contributions will be documented as part of the monthly CDBG performance reports. Future Program Income As CDBG loans are paid off by applicants, Butte County will receive program ,income. The County intends to use program income funds, estimated to be a minimum of $8,000 during the ter~t~ of this grant to provide additional funding for the proposed housing rehabilitation program. Owner-Builder Participation The County's owner-builder program allows owners of property who are qua 1 i f i ed to perform some or all of the rehabilitation work to act as their own contractor. The loan will cover the costs of materials, supplies, and subcontractors for work which the owner does not wish to perform. Payments from escrow are made as frequently as every two weeks on a reimbursement basis. If the owner has established credit with a supplier or subcontractor, a two-party check can be issued. The owner is not reimbursed for any of his/her time on the project, resulting in a savings of labor costs. Depending on the size of the job, the skill of the owner, and the amount of subcontracting, savings can range up to 27~ when compared to the cost of having a contractor perform the work ESee Appendix ). This savings not only allows a larger number of loans to be made, but also sometimes makes a project feasible that otherwise would not be. Generally, homeowners participating in the owner-builder program are qualified to perform only a portion of the required repairs. At a minimum, owner-builders are able to Aerform activities such as interior and exterior painting and clean-up, saving $1,002 per house according to labor cost calculations in Appendix If additional work is performed including re-roofing, installing new sheetrock, installing siding and installing floor covering, total sa vings would be $4,067. Therefore, a range of $1,002 to $4,D67 may be saved due to the homeowner's participation: Butte County anticipates a minimum of three homeowners to perform work equal to $1,002 and one homeowner to perform work equal to $4, 067 saving a total of $7,073 CDBG funds. For ease in budgeting CDBG activities, the amount will be rounded off to $7,075. REHABILITATION STANDARDS Units assisted under this program will be brought into compliance with the Uniform Housing Code. The County will also use the HUD Section 312 Rehabilitation Manual recommendations far room additions according to Section 8 guidelines as they relate to the number of persons in the household, age and gender of the household members. General property improvement:; are not eligible. Construction performed under the rehabilitation program will comply with the following codes as they relate to the repair of existing housing: a. Uniform Building Code -- 1985 b. Uniform Mechanical Code - 1985 c. Uniform Plumbing Code - 1985 d. National Electrical Code - 1984 NOTE: The County's intent is not to bring all Systems into compliance with the new construction provision of these codes, but rather that when rehabilitation work is performed, new work will comply with these codes. (e.g. an electrical system installed to code at the time of installation, which is still safe, will not be required to be repaired to meet the most recent version of the National Electrical Code). Incipient code violations based on a 10-year component Life and feasible energy conservation measures for existing structures as recommended by HUD will be included in the scone of recommended work . TEMPORARY RELOCATION Butte County recognizes that some occupants of units in need of substantial rehabilitation wi11 have to vacate their homes during the rehabilitation work, not to exceed 90 days. In the event rehabilitation activities warrant temporary relocation, owner-occupants will be entitled to a grant nod to exceed $1,600 if they are unable to relocate with a friend or relative. Owner-Investors who must relocate their tenants temporarily will have the option of adding relocation cosf.s to the rehabilitation loan. (see Appendix ). Special Circumstances The County Welfare Office offers assistance through the Special Circumstances Frogram for persons on SSI without available savings to make necessary repairs to their homes. The amount of funding ova i 1 a bl e i s limited to $ 7 50 (one-time) plus $3 00 (per year) . CDBG applicants who may be eligible for this program wi11 be referred to the County Welfare Office. Fair Housing and Egual_ Opportuni~ Activities To ensure that fair housing practices are adhered to, the Butte County Housing Authority refers all complaints or violations to the Department of Fair Emp~.oyment and Housing (DFEH) for action. The Hnu s i ng Authority continues, nevertheless, to act as a clearinghouse and referral agency for fair housing complaints, and encourages Butte County residents to report violations to them. 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"'~ ~ 4 O O ~ •--~ fA L O ~ O CA O ~ o ~--~ tT L O Qt O ~ O, O ~ n r+~ O ~ O ~ O ~ ~ M ry ~ [+1 ~ N 1~ d} ~ O ~ O x o' a; a~ ~ ~~ ~ ~ 0 t` ~ o ~ d O ~ ~ !+~ ~ ~ ~l1 ~} L O b ~ ^^" ~. Q ~ ~ Q r• ~ ~ ~~ o ~ o ~ Ca' Q .--~ M L ~''l C'7 b4 L O r• O q O' O a ~ rn c N 64 ~ Q L O a-s O rp x a o u ~ •r M ~ N Q "'+ +r4 Ci eo ~ L ~ ~.-- O C ~ ~ ~~ ~ m t. H CpS v0- ~ H L ~ Q O F-- 4.- a cn W `--' ~ ~ c W Li] ~ Q ~ w~- Chi Is ~ a~ ~ ~ ~ ~ ~ ~ z cn r ~ ~ O Gx ~ H- W q! C7 ~ ~1 ~~'f ~ U L Oi t N ~ y+~ O ro ° ~ o c ~+ ' '~ JC7 [~ OJ L r+') . Q tl.i }~ L u ~ m ~ ~~ ~ ~ a ~ ~ U ~ r-~ V! ~ ~ ~ ~ •Q n r +.+ m ro ca o ~ ~ •.a .~ o ~ A ~' ~ a W 4~ ~ ~ ~ O C J ~ ~ •~ V1 ~ r ~ a.: ~ 4 '~ • • O ''a p ~ ~ L ~ '~'~ d r r ~ O ~ ~ ~ N ~ ~ ~ ~ ' ~ c1 G •'- Z ~ Lit •'- ~ ? ~ +~ N G Y~4 (~ •1~ r . aj .r.. 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L a O H ~--~ sn ~v ~ • v 'G Qa ~ w rn t 97 N Ot ~ ri S.7 f], b ~ +~ d u~ U G~ ~ >, 0 0 N .- •ri •ri ~ L 1/1 {0 RS ~ ~ r.~ a ~ ~ m ~ .-t ~ V to .] A i vas y xa C7 X y iR •o ~ ~ m L ~ a ~ tp ~S Y .; V b V ~6 Qf L. a L C7 a~ c 0 +~ ~.- n ~ ~ ~ .--i C 0! U' z V STIRLING CITY SCALE IN MILES a U5 i N237 FLEA iti1TN Rp G . '1s y ~ T23N .t SEE SEPARATE LEGEND fOR • ~ ' CENSi15 60UNDARY SYINBOlS, TYPE STYLES, '. `~ .~ .. '__~ , ~ . R~Yi51oH~ ~ . _ - ~ . ~:, AMD GEOGRAPHIC AREAS ~; ~= j x .Y` ,x. ... ..._..,...f_ .. ~ ^ G: ~ we ~' a: V Vf v '.. f C , ,: 4 ~~ ~~; ~~ i r~\ 1r y .~ APPENDIX STIRLING CITY ROUSING CONDITION SURVEY RESQLTS A n exterior housing condition survey of Stirling City was conducted by Ward Connerly in March and April 19$7. Mr. Connerly has administered CDBG housing rehabilitation programs for over 10,, years in Northern California. He was assisted in this survey by local resident Will Conner. Units were classified as to the extent of visible deterioration causing non-compliance with minimum standards contained in the Uniform Housing Code. Violations were identified in two categories - structural and non-structural and then further defined as to the component needing repair. The results are provided below: * Total Units: 163 * 44~ of these units were judged to need no substantial repairs. These were not judged to be violations of the Uniform Housing Cade. Included in this group are mobilehomes without permanent foundations but which otherwise appeared to be structurally sound. Butte County does not require permanent foundations under mobilehomes. * 3$ of the rani is were judged to regui re minor repairs. Such repairs included roofing, weather.ization and exterior paint, or miner structural wor;c. * 4$ of the units required moderate rehabilitation. Common deficiencies in this group were one ar mare of the following: .foundation repair ar installation, major roof work, repair of walls ar framing; or a combination of several less major items w•~ich would include items identified under minor repairs as well as electrical repairs and reinforcement of substandard additions. * 45~ of the units were judged to be major rehabilitation projects. Typically, these units are over 40 years old and have no foundation resulting in structural and roof problems. Other serious problems are decayed or non-existent septic systems. Twenty residences, ar 21$ of the houses needing rehabilitation have serious septic tank problems or no septic system at all. Several of these dwellings also have substandard additions which are in disrepair due to use of inadequate building materials or inadequate maintenance. Other common deficiencies in this category are hazardous electrical systems and deteriorating plumbing. Where major rehabilitation is required to bring a su bsta ndard addition into compliance with Butte County health and safety codes demolition and replacement of the addition is the only feasible alternative, * 3~s of total dwelling units were judged to be beyond rehabilitation. These houses have the same deficiencies as the major rehabilitation category identified above exceot that deterioration has progressed too far for feasible rehabilitation. These dwellings have been condemned by the Caunty. The surveyor noted th a t two of the homes in this category are owned by landlords living outside the community, A tatal of 11 units, or 6$ of the housing stock in Stirling City is either vacant or condemned, Based on the exterior condition survey and housing condition questions included as part of the household characteristics survey of Stirling City, the fallowing costs of rehabilitation are estimated. Range Average Minor 0-$7,000 $ 4,000 Moderate $7,000-17,000 $14,000 Major $17,000-plus $21,000 Given the overall mix of anticipated projects and the extent of deterioration, w~ estimate the average rehabilitation cost to be between $1,000 and $18,000, APPENDIX PALERMO HOUSING CONDITION SURVEY RESIILTS Th e exterior housing condition survey was performed in February 1986 by Robert Dunn, a member of Connerly & Associates, Inc. who formerly owned his own remodeling firm. Units judged as to the extent of visible deterioration causing non-compliance with the Uniform Housing Code and classified as to th a extent of work necessary to bring the'unit into compliance with th e code. Violations were identified in two categories - structural and non-structural and further defined as to the component needing repair. The results were as follows: * Total units: 325 * 30~ of the units were judged to need no repairs or minimal repairs that were not violations of the housing code. * 32$ of th e u nits were judged to require minor repairs, The work needed commonly included roof repairs, weatherization, painting or minor structural repairs. ~ ~~ * 20~ of the units were judged to require moderate repairs. Common deficiencies in this group were one or more of the fol~owinq: foundation repair/installation, major roof work, repair of walls/structures, or a combination of several less ma-~or items including those under minor repairs as well as electrical systems, substandard additions, etc, * i6~ of the units were judged to require major rehabilitation. Typically, these ;nits were over 30 years old and have na foundation resulting in structural or roof problems, Many, including old mo~ileho~~es, have substandard additions which are in such poor repair or built with such substandard materials that demolition and replacement of the addition is the on]_y feasible rehabilitation alternati~re. These units tyr~ically have hazardous electrical and deteriorating plumbing, * 1~ of the total units were judged to be beyond economically feasible rehabilitation. Base d on the exterior condition survey and the interior questions an th e housing characteristics survey, the following costs of rehabilitation are estimated. Range Average Minor 0-7,000 $4,000 Moderate $7,000-17,000 $13,000 Major $17,000-plus $21,000 Given the overall mix of anticipated projects and the extent of deterioration, we anticipate an average rehabilitation of $15, 000 - $18,000 per unit. APPENDIX PALERMO SURVEY OF HOUSEHOLD CHARACTERISTICS A neighborhood survey of Palermo household characteristics in residences in need of rehabilitation was conducted by Connerly & Associates, Inc, in March 1987. A total of 152 houses were surveyed and 10 2 responses were received. Attached is the questionnaire used far the survey and the results. To obtain the necessary information, the surveyor explained the purpose of the survey to the adult who answered the door. The occupant was assured that all information was confidential. This provided the opportunity to introduce the CDBG housing rehabilitation program while obtaining the information necessary to complete th e household characteristics statement. Household income was determined through use of the County median income chart reproduced below: Household Size 50~ 84$ ~ under/over 7,400 under/over 12 100 2 3 8,500 , 13,850 4 9,550 15,550 5 10,600 17,300 6 11,450 18,400 7 12,300 19,450 8 13,150 20,550 14,000 21,650 Referring to this chart, the household income was above or based on household size and if sc below 50~ of County median income. surveyor asked whether tf~e total below 80 0 of County median income if the household income also fe11 Before departing, the surveyor asked whether. the respondent would be interested in participating in the CDBG nragram iF the County recei~red the grant. The addresses of properties for which the owner declared an interest in the program were listed on the questionnaire. On some questionnaires, the surveyor requested the name and telephone number of interested homeowners for contact following start-up of a program in their neighborhood at a later date. APPENDIX PALERMO HOQ5EHOLD CHARACTERISTICS SORVEY RESDLTS Total. Sample l62 Responses l02 ( 62$ } Owner-occupants '73 { ~~~) Renters ~ 29 (28$) Owner--occupants over 60 41 { 55~ of owners ) Renters over 60 7 (24$ of renters) Owner-occupants with incomes below 80~ of County median 53 (72~ of owners) Owner-occupants with incomes b~1ow 50$ of County median 35 (47$ of owners) Owner-occupants over 5U yrs, under 80~ of County median income 36 (87~ of owners) Owner-occupants aver 60 yrs, under 50~ pf County median income 7.3 (56~ of awners ) Owner-accupied mobilehomes, owner aver f0 yrs. 14 (56~ of mobile- Renters with incomes below 80~ home owners) of County median (75~ of renters) Renters with incomes below 50~ of Caunty median { 58$ of .renters ? Owner-occupied mobilehomes 25 {340 of owners) Female heads of household 28 {27~.of total) Disabled owners 28 (38~) Disabled owners under 80~ of Caunty median income 2l (28$) Disabled owners under 50$ o£ County median income l5 {zOg} Ethnicity Caucasian g~~ Hispanic p$ Black 0~ American Indian/Eskimo l~ East Indian ~ p~ Eastern Asian Islander 1$ Interest (43$ of owners) APPENDIX STIRLING CITY HOOSEHOL© CHARACTERISTICS S[TRVEY A n eigh bo rho od survey of household characteristics in residences in need of rehabilitation was conducted by Will Connor, resident of Stirling City and Connerly & Associates, Inc, staff in March 1987. A t o t a l o f 9 0 h o u r es were surveyed and 69 households were home and responded. Attached is the questionnaire used for the survey and the results. To obtain the necessary information, the surveyors explained the purpose of the survey to the adult who answered the door. The .respondent was assured that all information would be confidential. This provided the opportunity to introduce the CDBG housing rehabilitation program while obtaining the information necessary to complete the household characteristics statement. ~Tousehold income was determined through use of the County median income chart reproduced below: Household Size 50$ 80$ 1 under/over 7,400 under/over 12,100 2 3 8,500 13,850 4 9,550 15,550 5 10,600 17,300 6 11,450 18,400 7 12,300 19,450 13,150 20,550 8 14,000 21,650 Referring to this chart, the surveyor asked whether the total household income was above or below 80~ of the County median income based on household size and, if so, if the household in came a~.so fell below 50~ of County median income. Before d e pa r t i ng , t h e s u rveyor noted the address of the property, and asked whether the respondent would be interested in participating in the CDBG progra,n if the County rAceived the grant. APPENDIX STIRLING CITY HOIISEHOLD CHARACTERISTICS SURVEY RESOLTS Total Sample 90 Responses 69 (76~) Owner-occupants 54 Renters :l2 Tenure Not Identified 3 Owner-occupants over 60 yrs. 23 {42~ of owners) Renters over 60 yrs. 6 (50~ of renters} Owner-occupants with incomes below 80$ of County median 49 (90~ of owners) Owner-occupants with incomes below 50~ of County median 27 (50~ of owners} Owner-occupants over 60 yrs, with incomes below 80$ of County median l5 (65$ of elderly} Owner-occupants over 50 yrs. with incomes below 50~ of County median 6 {26~ of elderly} Renters with incomes below 80~ of County median ( l0 0~ of renters ) Renters with incomes below 50$ of County ,median (83 $ of renters) ~'ernale heads of household 9 (ifi~ of owners ) (25~ of rPnter_s) Disabled owner-occupants }.0 (i8~ of owners) Disabled owner-occupants beJ.ow 80~ of County median income 9 (90~ of disabled Disabled owner-occupants under 50~ owners} of County median 6 { 60~ of disabled owners} Interest (0~ of.0-0) Ethnicity ( 0~ of total. ) Caucasian Hispanic Black American Indian/Eskimo East Indian Eastern Asian Islander HH Size Average One - 11 Two - 23 Three- i7 Employed Retired (88 ~ of owners ) 83$ 3~ 0$ 3$ 0~ 0~ Four - 7 Seven - 2 Five -- 5 Eight - 1 Six - 2 (17~ of total) (33$ of total) '•• 41 ,. B[}TTE COtJN'I'Y - 1980 CENSiTS RACE AMID SPAi~ISH ORIGI[3 Amer. Indian Asian & Spanish Origin Census Eskimo Paci€ic (Includes All Tract White Hlack Aleut Islander Other Races) 1 5198 32 36 38 67 178 2 5154 30 37 42 144 214 {95.30 {.5$) {.5$) (.1~} {2.7 $) {4~} 3 3064 37 44 4$ 1D7 127 (93$) {l~} (1.3$) {1.5~) (3.2$} {3.8 $) 4 3065 37 30 42 81 101 194.2 $) (1.1$) {1$) {1.3$} {2.5$} (3.1~) 5 3268 129 51 96 293 270 (85.20 {3.4$) (1.3~) {2.5~) (7.5$} (7 ~) 6 6255 89 62 117 241 307 {92.5$} (1.3$) {1$) {1.7$1 {3.6~} {4.5$) 7 4278 32 25 .40 69 106 {96.3$) (.7$) (.6$) {1~) (1.6~) {2.4~} 8 5328 34 24 92 74 146 (96~} {.6$} (.4~) (1.7~} (1.3~.) (2.6~} 9 2636 32 36 28 88 143 (93.5$) (1.1~) (1.3~a} {ls~) (3.1$) {S~s) 10 4076 85 34 57 217 300 {91.20 {1.9$) (•8 $) (1.3$) (4.9$) {6.7$) 11 3782 78 35 35 132 249 (93,1~s} (1.9$) (-9~S) {.9 ~) (3.2€) (6.1~) 12 2288 22 53 it 139 240 13 2666 1,07 83 41 281 386 (83.9$) (3.4~) {2.6~) {1.3 $) (8.8~) (12.1$} 14 3246 8 21 16 56 234 16 2279 1 17 12 23 48 {97.7$} {0~) {.7$} (.5~) {1$} (2.1$} 18 A694 1 31 32 68 139 {97.30 {0$) {.6$) {.6$) (1.4$} (2.9$) 19 2874 1 14 13 11 48 I9e.6$) {o$) I.S~) I.5$) I.4~) I~.7~) ~0 4566 1 28 33 45 94 21 3996 2 27 25 50 132 197.5$) {0$) (.7~) (.6~) 11.283 13.2$) 22 3738 - 21 27 40 116 {97,7$) {.5~} {.7$) (1~•) (38) '~~ 4 `~ 4 ~. Census Amer. Indian Asian & Spanish Origin tct White Black Eskimo Aleut Pacific Islander Oth r (Inches All e Races) 23 3210 (97.4 $} 4 (.1~) 25 {•$$) 11 (.3~) 47 (1.4~) 126 (3.$$) 24 3323 ' 9 107 7 31 108 (95.6$) (.3$) (3.1$) (.2~) {1$} (3.1$} 25 2036 31 44 5 38 104 {94.5 $) {1.4$} (2.1$) {.2$) (1.8$) {4.85) 26 3605 15 47 lb 36 87 (97~} (.4$) (1.3$) (.4$} (1~) {2.3~) 27 4756 26 85 34 70 154 {95.7$) {.5$) (1.7~) (.7$) {1.4$) (3.1~) 28 3278 44 82 31 55 156 {93.90 (1.3$) (2.3$) {.9$} (1.6~) {4.5$} 29 5331 16 19Q 11 92 197 (94.5} (.3$) {3.4$} (.2$) (1.6~) (3.5$} 30 3996 669 25B 26 15E 278 (78.20 (13.10 (5.1~) {.5$} (3.1$) (5.4~) 31 3113 70 97 23 66 129 (92.40 (2.1~) (2.9 ~} (.7~) (2~} (3.8~) 12 3025 10 149 25 85 175 (91.8 ~) (.3$) (4.5~,} (.8€) (2.6~.} (5.3$) 33 2739 25 70 28 9~ 20S {92.70 (.9~) (2.4~) (-g$) (3,1€) {6.9~;) 34 2975 12 22 78 874 103 8 (75.10 (.3$) (.b~) (2~} (22.10 . (25.7$) 35 4220 1 41 90 523 660 (86.6 0 (0$) (.6$} (1.8~) (10.7} (13.5$) 35 2773 3 53 21 164 209 (92$) (.1~) (1.1~} (.9~.} (3,4~} {4.3$} l~ _.~ f ry. .,~ ~ ~~ _. _ ~ ~_ _ i A [V D O F N A e U R r1 . '.N E ,; .- H A f~l v $ E .-~ ;; i Y ~ [ DEPARTMENT OF PUBLEC FEEAi.TFE L•~ CiIV#SIGN OF Ei~1V1RONts4E?VTr1L HEALTW Address = 190 ;demcriq% '•Yoy = 7 Coeenry enter Drive $ 797 ~!lioa Raad Reply to C'a~co. ~al~Icrni~ ?G??~ 3rctiiile_ =atilarna. ?54b~ Paradise, Caliiarnia 959b5 ~ eiephor.e: 9t5:""c4T-~ ~ ~eier~orsa. ?1bi5~,-J 281 Telephone: 915/$72-6308 ;larch 20, 1987 '7illard Caz>s-~er ?.b. Box l63 Stirling City, ~ 95978 3e : ,, 3lock ,Grant„ Money dear ;ir. Conner, `you have indicated a desire to ar.~ply for block ;rant monies for Stirling City. `you should note that most of the Homes in t:~e comraurtity are a.n :eed of repairs; more specifically: I) :-lames in the unse~rered sections of Stirli;~g City are or, septic tanks. ~ia~zy of these systems are substandaz~ end :sere not but zn :ait:~ any '.Mind of perni.t. In order to assure teat tze oxoundwater ~uaiity is oral^tai~.ed and tze ~zealth of the ca>~anity is conti:zued, these sui~s:.a.-ward systems should be reAla,ced and/ar upgraded. ~~ ~^ze 'Jar5t CQ71Ceztr3ted :iauSi.~~ GDI:C.cltl?:1S i~% ~~:e ut?c - „ ' ~i ~ T. ~vei the las ~ ~.ao ?ear r -- - s ove_ L.aelve :.cores ;gave '~e°;z conde'tnned by t::is .iepar~e:~t. ~'Ze substa:..iar~ ca~.diL:.ons ~os~ -.c~ta~ acre: a) ~ailiz.; septic sti's~Vms. J) ~ti~.7sta.`l~iar~ 'rll.:1::~, c} ~lazaraous glues a-~d i:istallation Of ~.JOO.i s~oves. d) Garbage, trash a.-td debri i:~ dad around ~'.->e homes. e) Substandard plumbing. =) :allure of stzuctur3l members to carxy imposed loa„s :~,th safety. b) Von-:~eatherproof buildi:~gs, i. e. leaky roofs and 3eteriorated siding. :,Tillard Canner March 20, I987 Page 2 Anything you can do to itm,~ove :~ousiab conditions i:- this community zaould be greatly appreciated. Sincer~ly~ ~./-~- . .~ ~~, ~ , ., ;' .~ John I,. ~-ide~ison, 3.s. ]ivision of ~nvironmenta2 Health JL?./b j c 4 ~~• .~p~ ~ Elnited States Farmers ~~ Department of Florae lg4 W. Main Street, Suite F Agncuiiure Administration Woodland, CA 95695-2915 April lO, 1987 William Cheff, Director Butte County Department of Public Works 7 County Center Drive Oroville, CA 95616 Dear Mr, Cheff: Farmers home Administration has been advised that the County of Butte is applying far 1987-88 Community Development Block Grant funds (CBBG) to finance a home repair program in the communities of Palermo and Stirling City. In support of 1487-88 CDBG activities in Butte County, FmHA, will coordinate with the CDBG home repair program when possible and provide a portion of the funding necessary to repair those units in the County which are rehabilitated under the CDBG program and which qualify under the guidelines of our program. FmIiA 504 program funding is available to very low income persons in Palermo and Stirling City who are unable to secure finances or credit elsewhere to correct health and safety violations, not to exceed $7,500.00 per unit. Financing is provided in the form of loans with a 1% interest rate amortized over 20 years and grants for elderly persons, not to exceed S5,000.00. The average cost per unit repaired under the 504 program is $5,000.00. California has a funding allocation for the 1487 fiscal year in the amount of $369,000 for Section 504 loans and $411,000 for Section 504 Grants. The other program which can be used for rehabilitation is our Section 502 Housing Program. It is also available for new construction and the purchase of existing housing. California's funding allocation far the 1987 fiscal year is $47,fl00.D0. Pamphlets are enclosed describing each of the programs. It is anticipated that these funding levels will be adequate to meet the requests received for the current year through the end of July, when the funds will be pooled on a National basis. The funding for the 1988 fiscal year which commences October 1, 1987, is nat assured at this point, since it takes Congressional action. For planning purposes, we-would anticipate that the funding level in the above programs would be at approximately the same level as for fiscal year 1987. ~~ut f~~ Farmers Home Administral:on ss an equal Opportunity Lender. r nn n n Complaints o1 discrsmination should be sent !o: Secretary o1 Agncullure. Washington. D.C 20250 Page 2 No separate allocations are made to specific areas. Based on past experience we anticipate Chat adequate funding wi11 be available to handle all eligible rehabilitation or repair requests received. Individual applications would be processed through our Oroville County Office. The directory information for that office is as follows: Michele D. Pinkston, County Supervisor 463-1, Oro Dam Boulevard Oroville, CA 95965-5791 Phone: (916) 533-4441 Please call if you have any questions, my phone nutaber is (916) 665-3382. Sincerely, A1~fE s c . BONE '"Chief, Rural Housing Enclosures cc: County Supervisor, FmHA, Oroville, CA District Director, FmHA, Red Bluff, CA BUTTE COUNTY RENT LIMITATION AGREEMENT RECORDING REQUESTED BY: County of Butte WHEN RECORDED, MAIL TO; RENT LIMITATION AND TENANCY SCHEDULE AGREEMENT This Rent Limitation and Tenancy Schedule Agreement is executed this day of 19 (hereinafter referred~to as~"Borrower") in consideration of the receipt of a Community Development Block Grant below market interest rate lean at _ ~ interest far years for rehabilitation of real. property in the County~a~ Butte, State of California, described as follows: Borrower agrees to oQerate the property described in accordance with the following terms: ~.. Of the units ? subject to this Agreement, ___ units } shall be available to and rented by low-income persons upon each vacancy created by the vacation of an exiting tenant. Initial priority for rental units shall be given to those households which resided on the premises prior to rehabilitation and were displaced due to, or during the process of, rehabilitation. If the designated number of low-income units are initially oe c upied by non-low-income households, but subsequently become vacant, the Borrower shall agree to rent such units to low--income households in accordance with Section 4(c) of this Agreement. 2. Rents shall remain at nre-loan application levels until rehabilitation is completed, as evidenced by the filing of a Notice of Completion. 3. Initial rent charges to existing low-income tenants at the completion of rehabilitation shall not exceed 25~ of the existing tenants' income; or, where before rehabilitation rents already exceed 25$ of income, no initial rent increases shall be allowed for a period of one year Pram the date of completion of rehabilitation as evidenced by filing of a Notice of Completion. Rent charges shall be maintained at these levels for a time period of not less than 5 years from the completion of rehabilitation, with increases permitted only a pro~~ided for in Section 4{a) below. If the unit is vacant at the time of rehabi 1 itation, initial rent changes shall, not exceed 25~ of 8~~ of county median income for the appropriate household size for that unit. 4. The following are the maximum rents which may be charged during the first year after rehabilitation has been completed: ~Jtilities Unit Size # of Monthly Included {# of Bdrm.} Units Rent Yes No a) After the first year, rents may be increased by an annual amount not greater than the percentage increase in median income for the area in which the rental housing development is located, a published by the U.S. Department of Housing and Urban Development. Rents may be adjusted only one time in any calendar year. If the Borrower is participating in a public rent subsidy program which regulates future rent increase, such regulations shall prevail. 2 b) in every case of proposed rent increase, the tenant(s) affected by such increase shall receive written notice of the amount of the increase at least 60 days prior to the proposed date of such increase. c) Upon vacancy of any unit (s) designated under Section I of this Agreement, Borrower shall agree to rent such unit { s) to low-income households. Tf a unit becomes vacant during the term of this Agreement, rents may not be increased above 25$ of $0$ of median income for the appropriate household size for that unit. Borrower shall affirmatively seek such households by contacting the local housing authority. Where such contact does not result in eligible low-income tenants, the Borrower shall contact the County for guidance. d) Borrower shall annually provide the County with a written list of current occupant's name and monthly rents by January 15th each year far 5 years. The County may verify this information with the applicant. 5. Borrower acknowledges that should rents in excess of those permitted by this Agreement and approtTed by the County be charged, this will be cause for appropriate action to be taken by the County, including, but not limited to, declaring a default and accelerating repayment of the Community Development Block Grant loan, requiring repayment of excess of rentals to tenants, seeking an injunction against any violation of this ?agreement, requesting judicial appointment of a receiver to take over and operate the property in accordance with the terms of this Agreement, or seeking such other relief as may be appropriate. 6. The rental agreement will be monitored by County or its agent . I n addition, comp_ Hance with the rental. agreement may be monitored by representatives of the State of California. 7. The conditions and restrictions affecting the real property subject of this Agreement shall run with the and and shall be binding on all parties having or acquiring any right, title, or interest in the property or any part thereof , including agents, personal. representatives, mortgagors, heirs, assignors, and all successors in interest. Borrower agrees that reference to this Agreement shall be inserted in any subsequent deeds and other legal instruments by which subject real property or any interest therein is conveyed. 3 8• The provisions of this Agreement are in addition to and do not alter, modify, ar set aside, in any respect, any other instrument securing the loan. Signatures must be notarized. Borrower BOrZ'OWeY APPROVEi7 AS TO FORK! E-~.---At~ta~ t~re-~~ BDTTE CODNTY HOIISING REHABILITATION PROGRAMS COLLECTION POLICIES PROGRAM PDRPOSE Butte County offers a variety of financial assistance under the Housing Rehabilitation Program to low- and moderate-income owner-occupant households for home reo_airs. The C aunty also has a Home Purchase Assistance Program which allows low- and moderate-income renter households to become homeowners. In addition, the County:~offers financial assistance to owners of investment property who rent to low- and moderate-income households and who enter into a rent limitation agreement. The purpose of the County's Housing Rehabilitation Programs is to provide low- and moderate-income households with affordable housing that is decent, safe and sanitary. Consistent with these goals, these Collection Policies are designed to minimize disr~lacement of 104:- and moderate-income households, minimize repossession of assisted properties and provide opportunities for housing and financial counseling to property owners to the extent po~sible with reasonable administrative procedures. POLICIES AND PROCEDURES Grants 1. ~'he County offers crrants to elderly owner-occupants (^ver 60 yQars old) and permanently disabled persons on a fixed incom?. Grants are repaid only if the title to the property i s sold or transferred within a certain number of years bayed on the amount of the grant. D?ath of the owner(s) a^d the resulting title transfE~r does not tr. iaaer renaYm_:~t. 2. Tf sale or trap=fer is Wending nr occurs, the amount which should be in the dbmand for pa~~off is the original grant amount (less any funds returnees from escrow) reduced by the amount "forgiven" whic'~ is normal ] y $l, 500 after 3 years and $500 per year thereafter. See sample grant agreement. 3. If a transfer of title occurs witY:out repayment of the remaining obligation to the County. County Counsel should be consulted regarding appropriate legal remedies. Nearly all grants are secured by a deed of trust which allows foreclosure. Deferred Loans 1. Deferred loans are offered to households who cannot afford an amortized loan. Deferred loans may or may not include interest. l 2. Deferred loans are due upon any sale or transfer of the Property, including transfer due to death of the trustors. 3. If sale or transfer is pending ar occurs the demand for pay off should include the principal Qlus simple interest (not compounded), if any, over the term of the loan. 4. If a transfer of title occurs without payoff of the loan, default proceedings should be initiated on the deed of trust to enforce the due-on~-sale clause, after consultation with County Counsel. Amortized Loans 1. Amortized loans are made to own©rs with the financial capability to make monthly payments at the time the loan is originated. ?-. Loans are not normally assumable, however, the Laan Committee may approve the assumption of a loan if the assuming household meets the eligibility criteria for a new loan and the committee believes that assumption will further the goals of the Housing Rehabilitation Program. Late Payment Procedures 1. If a payment is not received within 15 days cf the due gate, the Central Collections Deoa,rtment will send a reminder. notice to the borrower at the last known address. 2. I f a naymen t is not received within 60 days of the due date, the Csntra? Coll ecticns DeoartmPnt wii ~ send a second reminder letter and/cr contact t'~e borrower by °le~,hone. I''-:e deuartment will also notify the Consultant of the delinquency. 3. Upon notification of a serit~us delinc;uency, the Consultant will contact the owners iinmeoiatRly tc~ discuss their financial situation and their plans to bring the account current. If agreement an a repayment plan is reached, the Consultant will outline the repayment agreement in a memo .and have the borrower sign it, sending copies to Central Collections and the Loan Committee. 4. if a repayment plan which brings the loan current within six months cannot be arranged, the Consultant will review other possible options and make a recommendation for action to the Loan Committee. 2 Foreclosure/Foreclosure Alternatives If the loan cannot be brought current within six months, major action must be taken to deal with the delinquency. Although each situation will be different, the Loan Committee should take the following factors and oAtions into account in determining the appropriate action: 1. In situations where the owner-occupant is elderly or disabled, on a fixed income, or, if income is below 50~ of median income, and the owner would be eligible for a deferred loan under current guide~~ines for new loans, the Committee should consider deferral of all or part of the outstanding loan. 2. In situations where the owner-occupant is temporarily diwabled, unemployed, or income has decreased significantly, but the financial situation is expected to improve, the Loan Committee sho~;ld consider deferment of princiz~al ret~ayment, on times capitalization of. interest temporary interest adjustment or other actions which would temporarily decrease payments during the household's financial crisis. 3. Tf the borrower is an owner-investor and the loan cannot be brought r_urrent in a reasonable Aeriod of time. the Cnunty should initiate forer_losure proceedings. 4. If the borrower fails to fulfill *_he terms cf a repayment agrepr~ent cr continues to be delinquent on an on-aping bs;sis, foreclosure should be conside:6d. 5. Tf the County's security is ~ndannered, by default on a senior lien, degradation of the property; etc., especially if tha borrower is delinquent, thn County shoal,, initiates nPfa~a]t raror_eedi,-~gs tc ser.ure its in~•estment. 6. The Consultant will prepare- any necessary c;~cuments to formalize rep_ ayment a~treements including coordination of escrow if necessary. The Consultant will also coordinate default proceedincts with the title company, and final disposition of any property repossessed by the County. 3 EMERGENCY HOUSING REPAIR PROGRAM I. Pur se To assist law-income households outside current CDBG Target Areas in repairing imminent health and safety hazards. II. EligibilitZr '!. In nrder to be eligible, pxoperties must be: a. Outside current CDBG target areas b. In the unincorporated areas of the County c. Owner-occupied d. In need of repairs to correct serious health ar safety threats 2. In order to be eligible, households must: a. Have a total household income below $0$ af•median income adjusted by household size b. Be unable to feasibly ohtain assistance through other means lll. Types and Terms of Assistance 1. Assistance shall be limited to the amount necessary to repair the serious health and safety threat plus any escrow ar other fees. ~. Assistance shall be ir, the form of a 3$ loan amortized over a period not to exceed 20 years, except that the Loan Committee may authorize deferment of the loan, extension of the loan term, ad;~ustment of the interest rate or, if item C below applies, a grant under one or more of the following circumstances; a. Household income is less than 50~ of median income; b. total housinc payments including principal, interest, taxes and insurance exceed 3G~, cf grass income; c. head of household is elderly (over 6G years? or disa.~.led; d. household income is from a fixed source; e. other special circumstances. IV. Priority Because of the limited funds available, applicants will be prioritized based on the imminence and seriousness of the health or safety threat and the probability of increased deterioration ar threat if the item is not repaired immediately. Projects which require more work to repair health and safety threats than can be funded under this program (generally projects above the $q~ppp_ $7,ODd ranged will be considered for inclusion in future applications for the CDBG and other programs. ~t1n 2 ?. 19$6 ~~,,,`'` HOUSING AUTHORITY August ~ s, ~ g86 of the County of BUTTE Bill Cheff Department of Public iVorks . U7t County of Butte - ~ ~ 7 County Center Drive ~ ~`_'~ Oroville CA 95965 -'~~~"'' ~ SUBJECT: HOUSING DISCRIMINATION COMPLAINTS `° ti' ~~ Dear ?lir. Cheff. In January= 1983 the Housing Authority entered into an agreement with the Department of Fair Employment and Housing (Dl"EH) to refer ~fOHl~ G- 80Wi_ING prospective fair housing complaints #o DFEH. 1Ne were given a form Executive Director called Pre-Complaint Questionnaire along with procedures to call a Consultant of Office Duty and begin a formal referral relationship. Approximatel~~ one ~•ear later the agreement was consummated ~~ith the request to har,~e the Housing Authority continue to refer fair housing matters to F~FEH. O:tr telephone number continues to appear in thc~ Chico Enterpri e Rc~carrl as providing information on assistance regarding violations or complaint. 1~'e do a~~i~t and refer individuals to the correct telephone numt~er of DFl;ll, (f!]~'~? ~aS-N~18. 1;e do not Beep or receive any statistical information on referrals. tt~e intend to continue this service, as t,~ell • aG refer indivicl~ials to other agencies ~ti=ho mad= provide other services, t~=hether ti~E nc--.-~' he ';-al or social assistancR. In the e~rerrt ~::~ c~zr= rot prc•~idc these services in the future, t~=e t:•ill notif't the Ca~.,nt := o Prate so that other arrangements c~~n be mar'.e to provide a?tc~rn~~te ~er~t~icc'. Should ~=orr have an~~ questions, please feel free to call ar tvrite me. S'incere~y, fr .~~ Gar Sannar Ho ing illanager lcr cc: Connerly and Associates 560 Vallomt~rasa Avenue Cf~ico, CA 9592b (916) 895.4474 ASS 4,9.4474 APPENDIX CONSTRUCTION COST DOCIIMENTATION To determine th e e stimated cost of rehabili tating units in need of repair, work write-ups were prepared and cost estimates were obtained ( attached ) for three representative housing units in both Stirling C i ty and Falermo. One unit needed minor repairs. Two of the units were identified as in need of moderate repairs and three were in need of major repair ( See Appendix for definitions). The estimated cost for minor repairs is~• $6,000. The estimated construction costs far the moderate units were $11,299 and $10,191 or an average of $ 10,745, and the estimated construction costs for the major unit was $20, 700. 1n order to accurately determine the average total cost of tlhe rehabilitation projects, escrow fees (approximately $500.00) and contingency fees (approximately 5$ of the construction costs) should be added to construction costs. Taking into account escrow fees and contingency fees, the average cost of a rehabilitation project in Butte County is: Average Total Construction Escrow Contingency Average Costs Fees Fees Cost Minor $ 5,945 + $250 + $ 27S = $ 6,495 Moderate $10,745 + $500 + $ 500 = $11 745 Major $20,700 + $500 + $1,035 , $22,235 Weighted Average Cost $ of Units of Rehabili in Need tation Minor Moderat $ 6,495 $11 X 33~~ _ $ 2,143 e Major ,745 $22 X 24~ 4 _ $ 2,81$ ,235 X 43 - $ 9,561 Weighted Average Costs - $24,522 For ease in calculating fund~.nq needs, the average cost of a housing rehabilitation project will be rounded off to $15,000/unit. The average cost of moderate and major rehabilitation projects will be rounded off to $6,500, $12,000 and $22,000 respectively. A11 estimates were prepared by Robert Dunn. Prior to preparing work write-ups for Butte County's CDBG program in Chapmantown and E.l M e dio, Mr. Dunn owned his own remodelling firm. He currently is in business for himself as a carpenter. NOTES: 1. Escrow fees account for costs involved in setting up an escrow account, title reports and other necessary documentation (i.e. termite reports). 2. percentage of total. dilapidated units in both target areas which are repairable which require minor repairs. 3. P e rcentage of total dilapidated units which are repairable which require moderate repair. 4. Percentage o.f total dilapidated units in both target areas which are repairable but which require major r. ehabi li tation. 5. To accurately determine the average cost, the ratio of minor, major and moderate units must be accounted for. As shown, the weighted average cost is $14, 522. Comparatively, the unweighted average cost would equal: $14,9].6. This is the summation of the six work write-ups. The average cost is higher than the weighted figure due to an over representation of major rehabilitations in the sample. APp$Nnzx Stirling City ~l 453 Manzanita Exterior 1. Remove roofing material from old of roof . (See drawing) Re-frame layout to match new section (South new framing shall be of Douglas Fir meet lumber dimension and layout 1987 Uniform Building Code (UBC). be used if feasible. $5,500 section (North half) rgaf line and rafter half) of roof . All No. 2 or better and requirements of the Rafter trusses may 2. Install new metal roof over new roof framing. Install new gutter and downspout system around entire roof. New roof shall match existing. $2435 3. Reinstall wood stove flue to stop existing leaks. $150 4. Install T1-Il exterior siding on house where new siding has not been put up . House is now partially covered with new TI-11 siding. Approximately 800 sq, ft, of new siding required. $1,150 5. Remove existing electric service Hanel. Install new U.L. approved l00 amp service panel. Re-wire house, replacing existing wire, boxes, switches, and outlets. All wiring shall be done to National Electric Code specifications. $2,83I 6. Replace o;~erhang above front door. $300 7. Remove and replace steps at front and back door (redwood). Sack steps shall include hand rail. $602 8. Prep, prime and paint entire exterior of house with 2 coats latex. Owner's choice of color. $1_L275 IntPrinr 1. Replace existing walls on back porch, between kitchen and back porch, and alonq north wall of house (see drawing) . Existing walls in these areas are non-stud wa11s and must be replaced with stud framed walls built to UBC specifications. A11 framing material shall be Douglas Fir No. 2 or better. Approximately 70 linear feet of $ ft. 2x4 framing "required. $ 2 lg0 L 2, Install 1/2" sheetrock an all newly framed walls, Tape and paint all new sheetrock. Approximately 550 sq. ft, of sheetrock . 510 3, Finish taping and painting unfinished existinq new sheetrock in living room. $365 4. Install new 1/2" sheetrock ceiling in living room. Approximately 350 ft, Tape and paint new ceiling. $686 5. Remove and rebuild back utility porch according to code. Framing is now substandard and floor must also be replaced. Rescreen window openings on porch. $1,776. 6. Remove wall covering in bathroom around tub. Inspect framing and replace any substandard or water damaged material. Install new "green" sheetrock around tub. Remove floor covering in bathroom, Inspect subfloor. Replace any damaged subfloor material. Prep and paint bathroom with enamel. Owner's choice of color, $1,254 Total cost: $21,754 APPENDIX Stirling City #2 504 Manzanita Exterior 1. Raise house and install new perimeter foundation. New foundation shall provide a minimum of 16" clearance under house and meet all Unifoxm Building Code reinforcement bar requirements. Contractor shall re--use existing posts and beams for floor substructure. $6,885 2. Replace any water damaged siding at base of exterior walls. New siding shall be 6" V-Rustic" and be painted to match existing. Approximately 100 linear feet required. $685 3. Firmly secure or replace if necessary, all existina roofing nails in metal roof. Cover all nail heads with a coat of black roofing mastic. $948 4. Install new decking on front porch; 1x4 pine, approximately 60 sq, ft. $795 5. Install new redwood hand rails on both sides of front stairs. $285 6. Replace gl as y i n broke n windows ( see drawing) . Use double strength glass. $186 7. Install new 1 3/8" solid core, exterior grade door at back entrance. Door is 2' x 6". $340 8. Remotrp wood debris from around back door. $145 9. Install gutter and downspout system an house. $650 Interior 1. Insure all electric outlets and switch boxes in house are properly covered. $120 2. Reinstall light fixture in back utility porch, $l15 3. Properly affix ceiling the in bedroom number one. $145 Total cost: $11,299 APPENDIX Stirling City #3 505 Skyway Exterior 1. Remove roofing material from over back l6 ft. of pause--including porch, (see drawing) . Demolish and remove back porch. Inspect uncovered roof framing and replace any damaged material with Douglas Fir No. 2 or better. Rebuild porch walls and roof according to Uniform Building Code wall and roof framing specifications. $3,345 2. Install new roof deck over porch and any new deck required after roofing material removal as per number 1. Install new 151b, felt and #235 self-sealing 20-year asphalt shingles. Install any necessary flashing. $2,361 3. Raise house and install new perimeter foundation. New foundation shall provide a minimum of lb" clearance under pause and meet all uniform building code reinforcement requirements. Contractor shall re-use existing posts and beams for floor substructure where possible. Any Bast, bears or joist replacement matArial shall be Douglas Fi.r na. 2 or better. $9,472 4. RemoYTe existing electric service panel. Install new U.I,. approved 100 amp service panel. Replace all related wire, boxes, switches, and outlets throuarhout house . All wiring r~pa i rs shall be done to National Electric Code specifications. $2,450 5. Demolish ad ~ oining garage structure. Contrac',~t~~' shall be responsible for remo~~al of all material. $1,360 Interior 1. Replace both gable windows in upstairs bedrooms 2 and 3. Two, 2' x 6" x 4' x 0" windows needed. $436 2. Weatherstrip front and rear entrance doors. $155 3. Caulk between sill and inside bottom frame of all aluminum windows. $480 4. Remove tub in bathroom. Inspect wall and floor covering and framing around tub. Replace any damaged materials. Reinstall tub and repair leaky fixture. $1,630 5. Prep and paint entire inside of house. Owner's choice of color. $1,478 Total cost: $23,167 APPENDIX Palermo #1 2157 iienilworth Exterior 1. Raise house and install new perimeter foundation. New foundation shall provide a minimum of 16" clearance under house and meet all Uniform Building Cade reinforcement bar requirements. Contractor shall re-use existing posts and beams for floor substructure where possible. Any replacement post, beam and joist material shall be Douglas Fir no. 2 or better. New foundation shall be installed so as to level existing incline in kitchen floor. $7,686 2. Remove existing roofing material. Replace any damaged roof sheathing or rafters. Install new 151b. felt and 20-year self-sealing shingles. Install new flashing and roof jacks where necessary, install new gutter and downspout system around house. $2r540 3. Install new T1-11 siding to exterior of house. Approximately 1,000 sq. ft, siding required. $1,638 4. Frep, prime and paint exterior of house using two coats of Qxterior latex paint. Owner's choice of color, $1 , 268 znteriar 1, Install new l/2" sheetrock on living room and kitchen walls and ceilings. Tape, finish and saint new sheet~-ock. $l, 2S5 7_. Replace existing shower stall with 1-piece corning fibergias shower stall. $630 3, Repair leaky sink fixture in kitchen. $75 4. Enlarge bathroom door to hold 1 3/8", 2' x 6" hollow core birch door. $742 5. Permanently seal closed exit door off living room, Finish interior with 1/2" sheetrack, Tape and paint to snatch existing. Finish outside with siding to match existing. $76Q 6. Install new 3' 0" x 4' 0" window in living roam. Properly install swamp cooler in window. Build new cooler stand {redwood). $551 Total Cost: $27,145 APPENDIX Palermo #~2 7479 Melvina L'v~~r~.-.r 1. Remove existing electric service panel, Install new U.L, ap proved 100 amp service panel. Replace all related wire, boxes, switches and outlQts throughout house. Ail wising repairs shall be done to National Blectric Code specifications. $2,381 2. Install new septic tank and leach line system. New system shall comply with all Butte County septic system codes a nd Uniform Plumbing Codes wtzere applicable. $3,785 3. Rebuild swamp cooler stand Eredwood?. $224 4. Remove existing roofing material . Install new 151b. felt and 20-year self-sealing asphalt shingles. Install new flashing where necessary. Install new gutter and downspout system around house. $2L218 5. Rescreen porch--North side of house. $283 Tnterior 1. Make all windows operable and wpa~.her-tight. $960 2. Replace exit door off screened-in porch with 2' S" solid core exit door. $340 Total cost: $10,191 APPENDIX Palermo #3 2171 Palermo ~~+-.._, ..r 1. I ns to 11 new wiring , outlet boxes and switches throughout hawse. Use existing service panel. All wiring replacement shall meet National Electric Code requirements. $2,489 2. Rebuild pump enclosure on adjoining east side of house (redwood). Paint to match house. $455 3. Remove existing roofing material. Install new 151b. felt and 20-year self-sealinq asphalt shingles. Install roof jacks and flashing where necessary. Use existing gutters. $1,125 Tr~~.-.r~..r 1. Remove ceramic file around tub. Replace damaged sheetrock in area with new green sheetrock. Reinstall ti 1 e . Remove floor covering in bathroom. Repair any damaged subfloor or framing in floor. Install new linoleum in bathroom. Owner's choice of color and Pattern. Tnstall new tempered sliding glass door. $1,557 2. Tnstall 8 ft, of new formica counter 'top in kitchen sink area. $520 3. Install new light fixture in kitchen. Owner's choice of fixture. $235 4. Repair or replace leaky fixture in kitr_hen sink. X75 Total cast: $5,945 BUTTE COUNTY PLANNING STUDY GOIiASSET-FOREST RANCH As required by General Plan law and the policies of its Land Use Element, the County of Butte has instituted an Area Plan process, and implemented a work program leading to the development of Area Plans to the Caunty General Plan far each community or area of the County. The Area Plan Process has been found effective in resolving conflicts and facilitating growth while protecting, promoting and accomplishing the goals and objectives of the community. As part of the overall Area Plan strategy, the County is currently in the midst of preparing an Area Plan far the communities of Durham, Dayton and Nelson. People from the communities of Forest Ranch and Cohasset have approached the Board of Supervisors to request that their communities also receive an Area Plan. Although the Area Plan program is a priority for the Caunty, money to pursue it is not avaiia7le. The County Area Flan program is funded by discretionary local revenues. State mandated programs have eliminated any growth in local programs funded with discretionary revenue, and are effectively eliminating local programs. Significant cuts have occurred and are expected to continue to occux in both County programs and personnel. Thus, the County has the desire to pursue the Area Plan program, but does not have the funds. if the County is unable to obtain this planning grant, it will be unable to woxk with the Cohasset-Forest Ranch Planning Area to address and alleviate the problems and concerns of the communities. Following the completion and adoption of an Area Plan, the Caunty* would be able to explore various financing options available through the Community Development Block Grant program to address health and safety concerns revealed through the Area Plan Process. x x ., -~ -~ x x ., .. ~ The County needs $18,500.00 to complete the first phase of an Axea Plan, preparation of a Master Environmental Assessment. Preparation of the Master Environmental Assessment is done under contract to a consultant. All other work on the Area Plan is done in-house by the County Planning i7epartment Staff. The $18,500,00 would be broken down as follows: $17,000.00 to cover costs associated with the contract, and $1,500.00 for personnel services. The amount requested is based upon past proposals submitted by planning consultant firths for the preparation of a Master Environmental Assessment for a Planning Area of comparable size. The Caunty awarded a contract in June, 1985 for the preparation of a Master Environmental Assessment for the Durham, Dayton, Nelson Planning Area for $12,50O.U0. That consultant has provided the Planning Department with a breakdown of costs that show actual casts exceeded the contract price. The $18,500.OD is a more realistic estimate of the casts that would actually be incurred. The Caunty would utilize a formal Request for Proposal process to select a Consultant to prepare the Master Environmental Assessment. This process was used t~uccessfully previously for the Durham, Dayton, Nelson Planning Area, and a copy of the Request for Proposal is available for review. ias ~~~~~~~~~~ ,~ TIME FRAME PREPARATION OF MASTER ENVIRONMENTAL. ASSESSMENT COHASSET/FOREST RANCH PLANNING AREA The entire time frame is exprected to ~e nine (9) months. 1~ SEPTEMBER,~~198fi: Prepare and send out Requests for Proposals for the preparation of a Master Environmental Assessment for the Cohasset/Forest Ranch Planning Area. NOVEMBER~``1985: Review responses to Request for Praposals, interview and select consultant. DECEMBER 19$6: Commence contract APRIL ,_„'1987: Review Draft Master Environmental Assessment and return to Consultant for finalization. JiINE,",19$7: Receive Final Master Environmental Assessment 109