03-21-83 agendaHOUSING AND REDEVELOPMENT AUTHORITY
RESOLUTION NO.
AUTHORIZING THE PURCHASE OF REAL PROPERTY
AND IMMOVABLE FIXTURES AT
6645 LYNDALE AVENUE SOUTH,
APPROVP;L OF AGREEMENTS ,
AND ESTABLISHMENT OF A SPECIAL MEETING
FOR PURPOSES OF A PUBLIC HEARING
TO CONSIDER THE SALE OF PROPERTY
WHEREAS, the Richfield Housing and Redevelopment Authority
(HRA) desires to purchase certain .real property pursuant to and
in furtherance of the L/H/N Redevelopment Project heretofore
adopted. by the City of Richfield (the "City") and the HRA, said
real property being described as in Exhibit A and also known as
6645 Lyndale Avenue South, and
WHEREAS, Minnesota Statutes 462...356 require the Planning
Commission's finding as to the conformance of-the propcsed pur-
chase with the Comprehensive Plan, and
WHEREAS, the HRA did by Resolution No. .182 adopted on
November 16, 1981 designate the property at 6645 Lyndale Avenue
for acquisition, and
WHEREAS, the HRA has caused appraisals of the property at
6645. Lyndale Avenue to be made and has carefully considered such
appraisals, and
WHEREAS, funds to provide for the purchase are available
from the Bonds of 1982, and
WHEREAS, the seller of 6645 Lyndale Avenue requires a suit-
able site to which to relocate its business, and.
.WHEREAS, the HRA owns real estate at 220 West 66th Street
which offers a suitable relocation site for seller, and
WHEREAS, negotiations with the owner of 6645 Lyndale Avenue
have resulted in terms of sale for the real estate and immovable
fixtures. as contained in Purchase Agreement No. 1 which are
satisfactory to both the owner and the HRA, and
WHEREAS, negotiations between the HRA and the owner of 6645
Lyndale Avenue has resulted in terms for the sale by the HRA to
said owner of the property at 220 West 66th Street satisfactory
to both parties which terms are contained in Purchase Agreement
No. 2, and
WHEREAS, on November 16,-1981, the HRA did authorize a Con-
tract for the Sale of Land fo.r Private Development (Contract)
with the Richfield State Agency (RSA), and
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WHEREAS, said Contract states that the HRA will sell the
6645 Lyndale Avenue property to RSA, and
WHEREAS, said Contract states that the HRA will also sell
the property at 6601 Lyndale Avenue to RSA; and
WHEREAS, negotiations for purchase by the HRA of 6601. Lyn-
dale Avenue are still underway,. and
WHEREAS, Minnesota Statutes, 462..356 requires .the Planning
Commission's finding as to the conformance of a proposed sale
with the Comprehensive Plan, and
WHEREAS, Minnesota Statutes 462.525 require a public hearing
on the sale of property. owned by the HRA, before it may be sold.
NOW, THEREFORE, BE IT RESOLVED by the Richfield Housing and
Redevelopment Authority:
1)- That the findings of the Planning Commission regarding
the purchase and sale of the above properties are
acknowledged.
2) That $297,500 is determined to be just compensation
for the property at 6645 Lyndale Avenue South.
3) That monies for the purchase of 6645 Lyndale Avenue
are to be made available from the proceeds of the
Bonds of 1982.
4) That the terms and conditions contained in Purchase
Agreement No. 1 and Purchase Agreement No. 2 are
approved subject to the findings of a public hearing
regarding the sale of 220 West 66th Street by the
HRA.
5) That the Executive Director is authorized to execute
as an agent of the HRA Purchase Agreement No. 1 and
Purchase Agreement No. 2 subject to the findings of
said public hearing regarding the sale of 220 West
66th Street.
6) That a special meeting for the purposes of holding
a public hearing on the proposed sale of 220 West
66th Street is called for April 4, 1983 at 7:30 PM,
r Richfield City Hall.
7) -That the subsequent resale of 6645 Lyndale Avenue
to RSA under terms of said Contract shall also be a
subject of said public hearing.
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8) That because said Contract also provides for the resale
of property at &6.01 Lyndale Avenue to RSA after the HRA
has obtained title to it, said resale shall also be a
subject of said public hearing.
9) That the Executive Director is directed to advertise.
said public hearing in a manner consistent with Minnesota
Statutes 462.5.25.
Passed by the Housing and Redevelopment Authority this 21st
day of March., 1983.
Thomas E. harms, Chairman ,
V. L. Luettinger, Secretary
EXHIBIT A
Lots 6 and 7, Block 3, Lyndale Shores on Wood Lake and that
part of Lot 8, Block 3, Lyndale Shores on Wood Lake described
as follows:
Beginning at the southwest corner of Lot Eight (8); thence
North thirty (30) feet along the west (Lyndale Avenue South)
line of said lot; thence southeasterly fifty (50) feet more
or less on a straight line to a point on the south line of
said lot which is forty (40) feet from the southwest corner
thereof; and thence. west forty (40) feet along the south
line of said lot to the southwest corner thereof and the
point of beginning.
HRA RESOLUTION NO.
APPROVING MODIFICATIONS TO THE
RICHFIELD HOME REHABILITATION GRANT PROGRAM
WHEREAS, the Housing and Redevelopment Authority of
Richfield (HRA) has established the Richfield Home Rehabilitation
Grant Program for rehabilitation of single family owner-occupied
housing in Richfield; and
WHEREAS, the HRA has determined that program changes would
assist in the recovery of Community Development Block Grant funds
for continued use in housing programs; and
WHEREAS, procedural guidelines and a repayment agreement have
been developed for administering a Rehabilitation Deferred Loan
Program to replace the grant program in the expenditure of CDBG
Year VIII and IX funds; and
WHEREAS-, by eliminating the grant element of the program,
the "Richfield Home Rehabilitation Grant Program" should be
changed to the "Richfield Home Rehabilitation Program"; and
WHEREAS, the recommended changes to the guidelines and
procedural guidelines have been reviewed by the HRA and found
acceptable.
,.NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota:
1) That the program title "Richfield Home Rehabilitation
Grant Program" passed September 15,-1981, has been
revised to become the "Richfield Home Rehabilitation
Program".
2) That the Executive Director is authorized to proceed
in the administration of a deferred loan program element.
3) That the changes in guideline and repayment as described
in HRA letter No. are authorized.
Passed by the Housing and Redevelopment Authority in and
for the City of Richfield, Minnesota this day of February,
1983.
Thomas E. Harms, Chairman
ATTEST:
V. L. Luettinger, Secretary
RICt;FI~~~ tiC':~ RE~iAGIi..Tt,TIO~~ GR?;'lT PRCGRt,~t
Procedural Guides
These guidelines as adopted by the Housing and P.edeveiooment Authority of
• Richfield, Minnesota, set forth the process and criteria for revie':iing
= applications for ,Richfield Home Rehabilitation Grants.
The three existing types of rehabilitation grants are as follo;•is:
1) Cor^munity Developc!ent Block Grant (CDBG) Hole Rehabilitation grant.
`~ 2) Minnesota Housing Finance Ardency (~"H FA) pehabilitation Grant
3) Flood grants.
The objective of the grant program is the uparadinn and maintenance of the
Richfield Housing stock by assistance of lour and moderate inco:;,e people.
From time to tire, the HRA may, by resolution, discontinue or add grant
programs. At that time, these administrative guidelines ;•~ill be amended
to reflect those changes.
I. Administrative Procedure
A. Resconsibilities of P:dministrators
1. The Housing and Redevelopment Authority Commissioners are responsible
for the establishment and adoption of each proclr-ar. They set forth
the intent and objectives of the programs. They are responsible
• for the appropriation of the operating funds. Tne Corr~rissioners
ti•.ill also hear appeals from applicants as presented by the Cxecutive
Director.
Z. The Executive Directer of the HRA ;gill revie:•/ and for:•;ard an+~
pertinent information to the HRA Comrlissioner-s. The Executive
Di recto•.- :•~i 11 also receive ~'~ri tten appeal s and take ~:rhatever action
is appropriate. .
3. The HRA staff ;vill be responsible for taking and ,,,rocessina apolica-
tions and obtaining all necessary information to complete l:hem.
T}~e staff is responsible for° interpr-etin~ ttre c?uidelir?es established
by the Cor:mi ss i oners .
- Applications :•/i11 be rr:vie:•/ed for funding at least rron~nly. Upon
revie:v of each application, the staff ;:ill deterrrine ;:nick apnl ica-
tions shall be approved, ;:hick appl icatiens are ei ic;ibiz bu~ not
_' approved, and :/inch applications arc c:enied ,1cco1'cir,^ .o ~^e re~:ie:•r
gUld(:lines arl+t Crlterld. AlI <1}?t)11CantS ;'Jil'l i:C !?C:'~?ed ?n ',•!t'?~1nQ
~. A ilii~:f'l,lrf Of tnn !rant Casey ,?nit ,lr.~?+`nS tai..., t'~';_._ .v -:~Ctl ~asc?
:•/i 11 t)r' :lr 1 `.ten ~:Irii i r)t".:•~t•.! i i t„^, '~ i ~ ,,~, .~ ~~.• `!
~o•: i(^1 :~'., gin'^r, 'v it c: .:'~!1~!ll ;'.", i', E'~. :. ,'!'., ': t!!:~!. ~... .._.' ~_..~~.. :ti .1?c?
be1en (1r')C~SSt'c; , rl l s SIL ..: ? ~ „1 ~ i t' ?".. ,r+'.':'+1 ~ ~ _ ~:~ :,'' 1 i
,,. .,,, ;tic;t.. '~•;r0 ?, Ger'Ted tuc?u?ng may re-apply after 90 days
and~be recohsidered on the basis of nea: information.
The decision of tl~e flftr'1 staff 4•ri I~ be final; ho~•~ever, appeals may
be made in those cases ti•~here applicants believe they were not
trea~ed equitable. ,>~
Appeals shall be in ~•ari tten form and submitted to the tiRA grant
administrator outlining the applicants concerns.
An HRA staff revietir s•~ill evaluate the appeal . If a .solution
by .the staff is not reached, the case ti~~il1 be referred to the
Executive Director of the HRA for review.
A reply in 4.lritten form to the appeal will be sent to the
applicant within 15 days.
b. Funding is received from. two different sources:
a} CDGG funds are received from Hennepin County as part of
an entitlement grant. The county has adopted procedural
guidelines for distribution of this money for housing
rei~abilitation activities.
b} ftHFA funds are received and administered through. the county.
The Richfield HRA receives and processes applications, _
approves their funding, and submits the application to the
county and MHFA for funding approval. The MHFA Home Imr~- -
rovement Grant program is currently being terminated and
will be replaced with a Rehabilitation Loan Program. The loan will
assist those who need repairs speciticalsy relating to
.health, safety .and energy conservation. The income limit
for eligible applicants will remain $6.,000 with a
maximum loan of 56,000. The new proaram is expected to
commence in November, 1981..
c) Flood -grant funds are a special set aside of 515,000
in CD6G rehabilitation money. The Richfield HRA has
adopted. procedural guidelines for distribution of tYlis
money for housing rehabilitation.activities.
11 Eligibility and Priority Guidelines
The eligibility"and priority guidelines follo~•~ for each
existing home rehabilitation grant program. The eligibility
guidelines for. one program are to be considered separate and
unrelated to the other existing program,.-Any .grant application
wi 11 be nevi e~~~ed according to the cri teri a established for that
specific program. An applicant receiving one tyke of grant is
still eligible to receive a grant of another type.
Section ~EFI'1i;I~~:S '
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Section II CCiiDiTIO~IS GO'.'FR';IP;G ACi•1I'IISTRATIO~J 3
A. Amendments; Directives 3
B. Federal and State P,~aulations 3
C. administrative Subcontracts 3
D. Delivery of Grant Funds 3
E. Approval of Grant Pac~aaes 3
F. Administrative Costs _ a
C. Statement of t•Jarranties 4
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Section III RESrOPtSTBILITIES OF THE CITY ~~.~ID HRA 5
A. Outreach and Public Information 5
B. Inspection of Properties S
C. Application Selection Criteria 6
D. Preparation of !dork ;•lrite-ups and Ccst Esti~-ates ?
E. Preparation of Grant Packaoes 7
F. Requests for Chances in Grant Amount ?
G. Disbursement of Funds 8
H. Prohibition of Service Fee Charces 8
Section IV' ELIGI3LE PRCPE%TIES 9
Section V ELIGIGt.E Ii~PRO'lE,~Ei~.TS ?Z
Section ~!I ELiG~~t~ RECI~._'!TS 1„
A. O:fner, ni a 1 ~
B. Nouser.o.c 5ross ~~.nnua i ..co~;,e ; S
Section VII GRA;VT APPLICATIOPdS
A. Homeowner Application for Grant.
B. Property Lnspection Report
C. Contractor-Homeowner Procedures.
D. Scope of Improvements
E. Contractor Bids
F. Contractor-Homeowner Warranty
G. Work Program Agreement
H. Income Verification
I. Asset Verification
J. Individual Data Confidentiality
K. Income Worksheet
L. Title Verification
M. Mortgage Status Verification
N. Repayment Agreement
0. Prior Approval (if needed}
P. .Improvements Certificate
Q. Data on .Individual Grants. and Loans
R. Proceed to Work Orde r
S. Amendment Request Certificate (if needed}
T. Contractor.Bills
U. Completion Certificate
V. Extraordinary Medical Expenses
Section VII I ACCEPTANCE PROCEDURES
A. Review of Grant Packages
B. Notification of Approval
Section IX COMPLETION AND DISBURSEhiENT PROCEDURES
A. Completion Procedures
B. Disbursement Procedures
Section X PRIGR APPROVAL GUIDELINES
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A. Accessibiiity Im;~rovements 35
B. Requirements for Participation 35
C. Amount of Grant for Accessibility Improvements 36
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~ D. Responsibilities of the City 36
Section XII GE~dERAL CO~JOITIONS RELATING TO GRAf~''S 37
A. Urban Hennepin County Equal 0ooortunities / 3~
Affirmative Action Requirements -
- .. .." ..r:`i~.~`
"Housing °ehabilitatlon Grant" or "Grant".means the com^~ittment of funds
cr. benai~ c~ recipients for the purpose of ma~:inc, eiigible improvements
to eligible properties, as described in Sections I': and V of these Procedural
Guides.
8. Recipient
"Recipient" means an individual or household mee*_ine the requirements of
Section VI :•~ho applies for and receives a orant.
C. Grant Package
The " Grant Package" consists of all documents listed below and explained
in Se ction VII.
1. Homeowner Application for Grant 12. Title Verification
2. Property Inspection Report 13. Mortgane Status Verification
3. Contractor-Homeowner Procedures 14. Repayment Agreement
4. Scope of Improvements 15. Prior Approval (if needed)
5. Contractor Bids I6. Improvements Certificate
6. Contractor-Homeowner Ldarranty 17. Data on Individual Grants and
7. !Mork Program Agreement Loans
8. Income Verification 18. Proceed to !•lork Order
9 Asset Verification I9. Amendment Request Certificate
. (if needed)
I0. Individual Data Confidentiality 20. Contractor Bills
11. Income !Jorksheet
D. Resident
"Resident" means a person, other
least 9 months of the year, or a
tax purposes.
E. Household Adjusted Gross Income
"'Household Adjusted Gross Income
of the recipient's household, as
F. Assets
2I. Completion Certificate
22. Extraordinary Fiedical Expenses
than a renter, living in the household for at
person who is claimed as a dependent for income
" means the annual 'ncome of all residents
deter^~ined in acccrdance with Section 'JI-C.
"Assets" means the assets of a recipient as deter;.iined in accordance :•~ith
Section VI-D.
G. Handicapped P°rson
"Handicapped Person" means a person who itaS
substantially reduces such person's abilit:•
residential setting, or ~~~hich suost~ntiall:
became employed or to participate in ~he cc~
such as chronic emphysema, arthritis, heart
condition not requiring the use of devices
^•?r^~anent ^'iy~lc,''.I cCiiidition :•Jhlch
r.;, *ur,ction inaeaendentl•: in a
1 :Ti :s s::ch person' ~ abi i tJ to
---:un i _ , . - erson a:i *_h a ccndi *_ ion
~is~ase and Otner ;'invi5i5ie"
to increase mobility
shaii not ce deemed a nandi;,~n;,ed Person, uniess a licensed ohysician
yor;=iQC in writing tnat such perscn's concision does Substantially
limit nis or ner dDility t0 `unction independently in a residential
settinG or to become employed or to participate in the cammunity.
H. Accessibility Improvements
"Accessibility Improvements" include structural improvements,
exterior improvements, bathroom improvements, kitchen improvements,
and other improvements to one or tlNO unit dwellings in i9innesota,
which are necessary to enable a Handicapped Person to function
independently in a residential setting, or to become employed or to •
participate in the community.
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A. Amendments: Directives
These Procedural Guides may be amended or supplemented from time to
time by Urban Hennepin County by issuance or revised pages, ~~rhich
shall be effective as of the date of issue, or such later date as the
amendment shall specify. Administrative memoranda may also be issued
} which discuss policy interpretations, clarification of procedures
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and other adminis~ra~ive maters.
B. Federal and State Regulations
P~othing in these ?rocedural Guides shall be construed in such a manner
as to conflict Wlth, alter, or amend an`r federal or state regulation
applicable to the conduct of the City's business, affairs, or functions.
C. Administrative Subcontracts
The HRA may enter into agreements with other entities for the purpose
of obtaining assistance in the performance of certain administrative
tasks with respect to the delivery of Grant Funds. Regardless of such
agreements, the HRA shall fulfill the following requirements:
1. The HRA shall bear full responsibility for the Derr"ormance of
any subcontracting entity with respect to the Grant Program. Such
purr"crmance shall include, but is not limited to the full aCherence
to policies and procedures set forth in these Procedural Guides.
2. The HP,A is fully liable for all warranties and representations
made regardless of who does the actual origination and; or
packaging of grants.
D. Delivery of Grant Funds
The HRA must disburse funds to contractors for completed vrork, in
compliance with Sections III-B and IX-B.
The HRA will be reimbursed by Hennepin County for grant amounts
as outlined in Section IX.
The HRA may make and deliver grants having an accregate orir,cipal
amount not to exceed the amount stated in ~~ction IIi-F.
E. ADDrO`Idl of Grant Sucmission Package
!_ '.o :vork may commence on any structure prior to ~he issuance b~~ the
HP.,~ Of d PrCCeed t0 ~.vor'; Crder referring ~C th,:~ 'Jc?r:1CUl..~ ^`'3n~.
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nny city ,~a~~ exercise she option to allo~.~r Hennepin County to administer
the program ~.~ti shin the City. In this event, .the HP,a may recapture
only administrative e:<penses directly relate to housing inspections.
The administnativecosts cannot exceed l0°: of the total rehabilitation
allocation in any single year. The Ci.y ~•iill recapture all costs
related to the administration of the program up to that limit.
G. Statement of tarranties
The HRA hereby makes the follos~ing warranties on the date that each
Grant Submission Pac:{age is submitted for acceptance:
1. The F'R4 is legally authorised and constituted to administer
the :Hc^e Improvement Grant Program in the State of ~~innesota.
2. "!o payrr,ents, fees, or renumeration of any type.~•~hatsoever have
been solicited. or received from any Grant Recipients or applicants.
3. After reasonable inspection., the. HRA has no knoti•~ledae that any
improvement covered by the grant is in violation of any applicable
zoning law_or regulation.
4. Any emoioyee of the HRA who is authorized to sign or countersign
checks, drafts, or to certify vouchers. shall be covered by a
fidelity and foreery bond in an amount at least equal to the ---
lesser of 527,00.00 or one-third ;1/3) of the H4A's total
authorized Grant funding, such an employee must be an authorized
signatory as evidenced by a written instrurent of the governing
body.
5. The Fl R,4 shali maintain documentation accounting for all funds
received through the coiiection of liens as prescribed in the
Repayment Agreement. Such r"unds must be suomitted to Hennepin
County since they are identified as program incc;•n?. Urban Hennepin
County shall allocate the funds for reuse in the HR.;'s most
currently funded Community Qevelopment dock Grant Housing Rehabili- '~
tation Program.
6. If, as to any grant disbursed by the fiRA, any of the warranties
contained in Section II-G is in fact untrue in any respect, then
the County may, at its option, take ~•~hatever action it deems
necessary, including legal action, to recover from the recipient
andlor the HRA, the Grant Funds so disbursed in violation of such
v~arranties. ,
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III. ,.~~P~',SI~ILITI~S ~:' T._ I~„
The ti R;, ,ril , be prir;:ariiy resF;ensibie for" the nro~:,otion of the
rant Program at thr local level . The 'riP.;, r~.ust exercise care in
avoiding any advertisin, or outreach methods :•~hich may be deemed
to systerrratically exclude potentially eligible applicants. Access
E to program mator•ials may not be denied to any; person for any reason.
The program should include efforts to reach those persons trho tra-
ditionally ~•rould not have been expected to apply for housing pro-
grams. In order to develop an affirmative marketing prooram, the
HRA should revie~:r its norn;al outreach methods to determine hour the
methods currently in use can be improved to reach out to persons who
otherwise might not apply .for assistance under the Grant Program.
6. Inspection of Prooert ies
The HRA sliail be responsible for carrying out a minimum of two in-
spections of Hach approved property.
1. One inspection shall be accomplished prior to the submission of
the Grant Packac:e to determine the follo::in~:
a. that all necessary improvements are listed in a Property
Inspection Report, as described in Section VII-F.
~~= b. that the Scope of Improve~ents shall be developed by the
HRA from the Inspection Report. The :•rork shall be Sid in
accordance with the technical specifications; and
c. that the structure, upon completion of necessary repairs,
tri11 be reasonably livable, safe, habitable and energy
efficient; and
d. that the structure, upon completion of necessary repairs, will
be economically viable, such that the amount of the Home
Improvement Grant may be amortized over the expected remain-
ing life of the property in an economically prudent manner.
A structure is considered economically viable where the cost
of needed repairs does not exceed the amounts of funds from
' this and other sources that are available for rehabilitation.
Generally, the amount of the grant should not exceed 50ro
of the market value of the property as indicated on the
' Property tax statement.
2. After all tiro rk is finished, the secon~ mandatory inspection shall
tab;e place, to determine that all wore has been cor:;pleted in a
satisfactory manner.
The f;RA may conduct interim inspecti^ns of the pro~ert;' as it deems
necessary. Partial disburse;^ent o` f:,r,ds may be authpr•i~ed b,; the
NRA after:
d. an interir;, lnspeCtlOn is CCr1UUCtCG bj the f1'?i~\; and
b. The HRA deterrrir•es that the s^ec i ; is :•:o--E: for ;:hic'i ay~•ent
1, reyuesteci F1aS '.):'C'n CCC:n~C~c~~~ 1'1 ,1 Satl;faCtOt f ."antlCt'; and
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C. A CCI~p1L'tlOn Cert~ ~"1Ca~C 1; •~:<ec:.-.:ci !';' all ;?aT't.~s 'or the
:•:ork co.~pl eted.
C. .Aanl is n} Seie~-'-ior, Cri rar=a
The H~; wild implement a first core, first served basis far
applicant selection.
,- Such a selection process ~•lill govern the selection of applicants
,i for grants in the event that the number of applicants exceeds the
number of grants that can feasibly be awarded, either within one or
mare target groups {if a tar•getina plan has been established) or
within the entire population to be served by the HRA {if no
targeting plan has been established}.
It is imperative that each inquiry and application be dated. This
dating t~~i11 be the only device available to the HRA for recording
• the priority ranking of the applicants.
In applying the`irst come, first served process, the Grant Admini-
strator must adhere to the fo11o~~~ing guiaelines:
1. The first come, first served process must be uniformally applied
during. the entire funding year.
2. No eligible applicant shall be rejected on the .basis of judgments
as to personal character or 1ir'e-style.
3. The HRA will allow for the consideration of applications on
emergency basis by utilizing the Prior Approval SystEm outlined
in Section X, in cases which require more rapid approval than
is possible through normal selection and approval system.
4. Where no funds are available for assistance to eligible home-
owners, the following procedure shall be used:
a. Explain to the homeowner that the fundinn for the current
year has been either depleted or allocatede
b. Make the homeoamer aware of the other possibilities which.
include the MHl=A Rehabilitation Grant and/o-r Lou-Interest
Loan Programs. and other local .state and federal programs.
c. Send the homeo~~m er a letter of rejection again outlining
other possible avenues of obtaining home improvement funds.
Hennepin County strongly encourages ail cities to ir~plement a first
come, first served applicant Selection process.
Any city wanting to implesrent an objective criteria system, including
a priority ranking of applicants andJor a c;r3nt review committee rust
submit, in :~riting, an explanation r the syste*n, the objectives
intended to be accomplished by the use c' SuCtt a syste^~ and an expla-
nation of the selection. and function-nf the Grant revie~,~ committee to
Hennepin County for review prior to the start of the funding cycle.
,,. Pre^..r3...... ^.- '•:or~~. ,ir...-_- ..._ r. r. .,.._, _ ~s'i~•~ _ _..
Thy ~~^; c,~; provide assist~nc~ to the hG~T'?n~:,ne° in ebta:ninr bids
~' for renab111tat10n. SUCK aSSlStanCe mUSt 1nClUde providing the
ho~„eo•.vner with a copy of the Scope of :rr.orove~r:en:s as described in
Section Vii-G of these Guides.
The homeowner must obtain a minimum of t~:ro bids for each of the
-=~.
authorized improvements.
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E. Pre^aration of Grant Package
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The Grant Administrator shall be responsible for the thorough and
accurate completion of all program documents, as specified in
Section VII of these Procedural Guides.
~ - The Grant administrator wi l l assist the r;NOI i cant •:ri th the prepar-
ation of the Grant Package, upon request, in certain situations.
Such assistance shall. include a personal visit by the Grant Admini-
strator to the home of the Applicant, or to any reasonable location
which is accessible to the Applicant. Assistance :rill also be given,
when needed, to complete necessary tasks required to cor;plete the
grant Package, i.e., soliciting bids for Grant Improvements, when
~" absolutely necessary.
`~ In certain extreme cases, the Grant Administrator may be required
to complete all necessary forms and tasks needed for the Grant Pack-
age. This ~vould include contacting contractors and obtaining bids
from the same, as well as completing the other forms as outlined in
Section VII of these Procedural Guides. Only in cases ~.vhere the
homeotivner i s unable to handl e their o~:rn affairs , ~:rhen dealing ~.~i th
. the Home Improvement Grant Program, should this service be rendered.
F. Reouests for Chances in Grant Amount
At the discretion of the Grant Administrator, an expenditure or" funds
in excess of the approved grant amount (never to exceed the grant
limit outlined in Section ViI) may be suEmitted to the HRA in the
event of justifiable over-runs in the cost or improvements. The Gr,snt
Administrator must submit increases or decreases in the grant amount,
never to exceed the grant limit outlined in Section VII, according
to the follo~ring procedures:
1. Ali requests for increases or decreases must be sub.^.itt~d on an
E Amendment Request Certificate, siGned by the homeo:•rner and con-
_ tractor, and receive HRA approval; and
2. The E{RA shall inspect the propert to deterrine that the in-
~.:
• crease or decrease is jus~:~ied; and
3. The Grant :-dmi ni strator shal l su•.^.(::i _ ,: .rri teen request for the
increase or decrease, acco,.~panied by ~n iteTi~ed esti^ate of
costs and :There a ne~:r contrsctor is c^osen ~ C~ntr~ctor-roTe-
G~•mer ~':1arr~nty dgre°f"enL slcned `';' =!1_ C^ntr~c:cr :nd !'C:°CC':rner.
--
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i
Try !;~r~ it :,SLR ~U~ "'"~..i~i0n 'Or ,.f;05~ Cr.1n amour,. increases
er Decreases ic^ ~~~ ~',J J; ;~;`~i1 it r r~ i
,,~~ .,.~ c ~ ~ ,,. "~r*_~ in Sec*ion
'~..-G c. ~nesz =rcc~dur..~ '.;vices. Sucn autr.cYi~~tion ~~,ii. be given
01 :~A r'„EI1C;^^^.~ ~,~a'J~~~r i.~r` ~'1CaLe thr^vU_ ~re signature Oi .the
Gr;:nt nc,.,inistr~~or. ~
}
!
In no case sh,:11 the amount or" the Grant exceec' the maxir^um grant.
a^;ount as scacea in Section 1II, except- in the cases or Accessibility.
.Grants as discussed in Section ,(i of these ?recedural Guides.
G. Cisburse~ent or Funds
Tee laPA shall bear the responsibility o` disbursing funds to con-
tractors ~•,ho have per'orTed worst as described in the Ir:provemAnts
Certi~icate•
The HRA shall make no disbursement for any work comp1~eted
until the property has been inspected and a Completion Certificate
has been signed according to the procedures set forth in Section
IX of these Procedural Guides
r. ~roi~ibition of Service Fee Charces
The HRH shall not charge an apalicant or recipient anyappiication,
processing, or otter fee.
2
t
Grant FUnGS shali be Used to enable Ke~1Dlent~ t0 i~~'^rOV~ properties
h~hicil meet the ; ci lol; ing criteria:
A. The property to be improved must not be in ~.iolation of applicable
zoning ordinances.
6. The property must be located within the city, must be used primarily
for residential purposes, and must contain no more than two dtirellind
units, one of ther.~ owner-occupied.
C. Grant Funds must be used to finance only improvements upon or in
connection with existing structures. Improvements may be made on
attached or detached garages providing that those improvements are
done in connection tiaith improvements to the main structure.
D. The property to be improved must be a permanent structure, including
mobile homes on a permanent foundation; trailers are not eligible.
E. ~yo property shall be eligible for a Home Improvement Grant. if it-has
been improved by such a grant within the r"ive-year period next nre-
ceding the date on Yrhich application for such a grant is made, except
in extraordinary circumstances relating to dama;e to the property as
a result of events beyond the control of the applicant or improvements
directly related to health and safety concerns such as failure of
plumbing, heating or electrical systems as determined by the HRA;
or should a previous recipient have a need for additional improve-
ments and no other qualified persons apply, the previous recipient
~•rould be considered for a grant.
F. Properties being improved must constitute a permitted use or be sub-
ject to a conditional or special use permit under the applicable
zoning ordinances including municipal, urban reneti•Jal, and development
district plans, arhich use or permit must not be impaired by the con-
templated improvements.
G. The property to be improved :•rith Grant Funds must be reasonable effi-
cient 1•rith respect to energy consumption. !•;here the property is not
reasonably efficient tirith respect to energy consumption, Grant Funds
must be used, to the extent necessary, to increase such efficiency.
Energy-saving features shall include, but not be limited to, installa-
tion.or upgrading of ceiling, ~•rall, floor and duct insulation; storm
~•Jindows and doors; and caulking and :•reatherstrippin~, ~;hich are con-
sistent with the energy standards as pro,.~ulnated as part of the State
E3uilding Code; but such improvements need not bring tf~e }sousing into
full compliance frith such ener"gy standards.
H. Al i properties beinct improved must contain adequate sr;oke ala-"rrs fol-
lo:ving completion of the rehabilitation -•;ork.
I . Goal s for 4ious i nct (?chab i 1 i tat i on ;;ss i s Lance have been established for
each city included in the Urban iiemlepin Col:nty Houszne <<ssistance
Plan !FI;,P~. For the property to be c,,^,unteu to:r~ara rleetinn hc::;ine
rei~abilitation goals in the N;;P, it r.~ust k~e deter:~•inod to b. subst~an-
_ dard and upon completion o` rehabilitaticn ,~•ust r•eet rlinirtu~l Section
8 Existing Housing quality Stand~r"d5 {nrrsuant to ~4 CF•^., as follo:•rs:
•
Ir..^r•ove~.~,nts made ~•;ith Gr~~n~ run,~~_ shall satis~~~ tho fcllo:;inn require-
r^,° n ~ 5 .
~ A, each improvement must be a Permanent General I^~provement. Perma-
nent General Improvements sf~all include such alterations, renova-
tions, or repairs upon or in connection t•~ith existing structures,
whici~ correct defects or deficiencies in the property affecting
t directly the safety, habitability or energy consumption of the
property. A Permanent General Improvement must be economically
viable in terms of a determination that after the improvement is
i made:
1. The structure will have a remainine useful life such that the
amount of the Home Improvement Grant may be amortized over such
life in an economically prudent manner. .eneraliy, the amount of
the grant should not exceed 50% of the market value of the property
as indicated on the property tax statement.
2. For the term of the repayment agreement, the lien must be collectable.
Thus all existing mortgages, contract .for deeds, and other encumbrances
must not exceed the value of the property as stated in the Hennepin
County Recorders office.
3. The structure vrill be reasonably livable, safe and habitable.
Permanent General Improvements shall not include materials,
fixtures, or landscaping of a type or ouality exceeding that
custoi~~arily used in the locality for properties of the same
general type as the property improved.
B. Each improvement must. be made in compliance with all applicable
health,-fire prevention, building and housing codes and standards;
' provided, however, that no application fora grant for property
occupied by the ov,ner shall be denied solely because the imorove-
ments will not bring such property into full co,,,pliance vrith all
~ such codes and standards.
C. Grant funds may be used for the portion of improvements located on
L the property 1•rhich will bring an individual v~ater supply system or
an individual sewage disposal system (includinn septic systems} into
compliance vrith loyal, state er federal environmental and ranitary
standards provided no public utility service is available.
D, Pdo Grant Funds shall be used in whole or in part for the purpose of
refinancing or paying off an existing indebtedness, pa_yr;.ents for
public improvement assessments, and financing the addition of luxury
items (dish~•,asher, patios, fireplaces, etc.). ;11 such funds must
be used to finance improvements begun after anplication for such
funds. fJo imorovements are eiirtible if be m,n before the issuance
of a Proceed to t•Jor!: Order by the IiRi'•..
E. All contracts covering all or any portion o` an improvement must
contain a HRA approved warranty of vlor-kr:ranship and r.;aterials.
t ICi~.. i... i~;a' J!`~;!'0'i(' ~I' .,..~ ~ '1'vt'~.~.'!;. :il .ti ~`1('. GC'r,Ct'1bt.'d
l1Y'l.U:'.~i,t~!)C.C'.`; lt?ifiC~,t`i`.~ })t'lt?...
1 . Gt't}t'COt,i add i ;.i(;n~, !rat; ;)(~ a 11 tr::t~t; in caws o ~ s('v~~r(~ overcro:•rd-
- in(,. Frr the pur;mse of this ('Y•oc~ra„~, rr (i:•rt>11 inc} ':rill general ly
bi?y(:OnS iil(?r(~i; nUVi?rCl'0:7(f;",~~ 1 ~ t!1('r'(' 1`., t!ll dtlC'R'at,('_ Oi !"O1'C t}lan
on(' f;C'1'•i0n f)~1' t':,0!'.1 ~ t'XC ~ ti;j l rltl ua i ~r!''v~i~1~ i l ri %ht? (f';:E.'~ ~ l n!~ ~ Qr d$
C)t}ic 1':11 SC' c37:)r'U VE: (f t1y Lh(? iii?;'.
2. Bathroom additions may be alloared in cases of inadequate indoor
• bathroom facilities, only if no otfier space in the structure is
appropriate for such facilities.
frOTE: In cases_af applicants with impaired mobility, requests for room
additions ';ri 11 be revi erred i n ccmpl i ance :•ri th Procedures for Grants
4c~: including Accessibility Improvements, as outlined in Section XI.
t G. Demolition of out-buildings is allowed only :•rhen such clearance is
required by the 7oval building code.
(
' H. Reconstruction of sidewalks and drive'-rays is allo:~red only on private
property and only if existing conditions are a clear and imminent
• safety hazard.
I. 'dater dra~•m from a valid well must be potable (sar"e for drinkirig) and
must be free of sand, grit or other materials :'rhich might damage the
pump or plumbing. Water need not be free from minerals :•rhich may make
it cloudy, nor must it be free from odor. P10 FU;;GS '~lI(.L BE OISBURS~D
BY THE HRA dNTIL APlD ',JHE~! :JaTER I5 ST~!JC.t. It i s ~n e7 i gi bl e i m-
provement to connect a house to city water and/or se:•rer when condi-
lions affecting the health of the .residents are 'present.
J. Exterior finishing (painting or siding) is allowed only to the ex-
tent that there is severe deterioration of current exterior f nish-
ing. Exterior finishing requested safely for cosmetic purposes trill
not be approved.
..: K. 'where property is not reasonably energy efficient, grant funds must
be used to the extent necessary, to increase such .efficiency. mercy
saving features shall be consistent with the energy stvndards pro-
mulgated as part oT the State Building Ccde but such improvements
need not bring the housing into compliance with such energy standards.
L. Smoke detectors must. be installed in ail dt:ellings being icproved
with grant `ands, unless de*_ectors are already in place. r.t leant
One del°Ctor 1S required nor each L:rellinn unit< In two°5~ory houses,
',risen only one detector is to be installed, it must be placed at the
top of the second fl OOr Stal rate 1 1 . : ` t~1e hC^'eo:vner already hd5 3
Su.OKe detector, inforT `~ ~^at '~Ct ,, '` t ~cr C ~ e
ataon ", e` _ ~-us' be „rori ,, n h
Inspection report.
:,
'. LeaG-ed52'' .'"1l,, ;'C15v!,1^~ "~JVZ^~,Cn r.l.~.
-~• ~ ~t'!0 ti .`i i,,;,iji, inspect or test to lr°nti ~" Lie e~15t~^C° 0' 1C:,^.e~l..te
{l~e~~-`O ~rS2~ ~,711nt 11a Zd rd~ On u'l i rOSiden~:3i StrLC Lure, ~0 be rend-
bi ~ 1tu l.~d.
Section 570.611 of the CuuG Re,ulations: 1) prohibits the use of
lead-based paint tirhenever CDEu assistance is used for construction,
rehabilitation or modernization of residential structures; (2) re-
- Quires the elimination of immediate lead-based paint hazards in
residential structures assisted ;'rith CD6u funds; and (3) requires
~_ notification of lead-based paint poisoning hazards to purchasers and
,~, tenants of residential structures constructed prier to 1950.
The HRA will be monitored by the Depart.m,ent of Nousina_ and Urban
Development (HUD) to determine compliance with Section 570.511.
The Department of Heatlh, -duration and ';telfare (HS';;) publication
`lo . (HSi'i) 73-5101 , June, 1974, ;•ri th an expl an4 ti on o f the rangers
` of lead-based paint follows:
~.
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PLE:aSE REND C.aREFULLY:
Yorrr atarrnre»t r,~ house rnav cv~ttain -
suas;a~uiai J~nncurts u% lead hascd pailtt,
ere~r +vllere HUD reoulatio~ts regarding
IcaJ based pai~rt see ntet. HUD re;ulatiwa
dv tot re;lture that prunc~rtics he made
free vj 7cad based para.
Children get lend poisoning when they
eat bits of paiae that coneain lead. If a
child eats enough lead paint, his brain
will be damaged. He tray become
mentatty retarded or even die.
Older houses often have layers of lead
paint on the watIs, ceilings, and wood-
work, When the paint chips of f or
when the piaster breaks, there is real
danger for babies and young children...
Outdoors, lead paints and primers
may have been used in many places,
such as wails, fences, porches, and
fire escapes.
If you have seen your child putting
piec,s of paint or piaster in his
mouth, you should tyke him to a
doctor, .clinic, or hospital as soon
as you can. In the beginning stages
of Iead poisoning, ~ child may not
seem really sick. Do not wait for
signs of poisoning.
Of course, a child might eat paint
chips or chew on a painted railing
or window sill while parents
aren't around. Has your child
bean especially cranky? Is he
eating very little'. Does he
throw up or have si:omach aches
often? These could be signs of
lead poisoning. Take him to a
doctor's office or to a•clnic.
Be sure to tell the rest of your family
and people who babysit for you
about the danger of Iead poisoning.
Look ai your walls and, ceilings
and woodwork: ?ire there places
where the paint is peeling?
e Get a broom or stiff brush
.and remove all loose pieces of
.paint .from walls. woodwork.
and ceilings. Swe~p up a!i the
pieces, of paint and plaster. Put
them in a paper bag or wrap
them in newspaper and put the
package in the trash can.
~ Always ke_p the floor clear of
loose bits of paint :and piaster.
o Children will pick loose paint
off the wails, so be extra .a reul
3bOUt kCCpiny the lower tarts of
.the. walls free of loose paint,
® You can cover up at feast the
lower part. of walls by moving heavy
furniture against tern.
If you want to know more about. how to
keep your child safe from lead poisoning.
talk to your doctor, public health nurse.
or social. worker it the clinic or health
department.
Reprint of a portion of DKEW Publication Vo. i HSIt) ~3-~ I01
HliD-3%5-F c.o e~~>>> June 1Qi~
The H,~~+ ~~.ust deny the applic::tien of any appiican~ ~:,nich does not meet
ali the requirements set forth in these ProceCur.:l Guides including the
requirements of income, assets, eligible properties, ar,d eligible im-
provements.
A. O:vnershio
1. The recipients must individually or in the aggregate have at
least:
l~
~- a. A life estate;
';~~ b. A one-third interest in the fee title;
c. A one-tflird interest as purchaser in a contract for deed re-
saect to the structure to be improved and ^ust occupy such
property as their principal place of residence. _
2. All individuals occupying the structure to be improved as their
{~~- principal place of residence and 'Having an o:vnership interest in
such structure must join in the application.
~, 3.. For the purpose of this program, o:•m ership shall be based on the
information recorded in Hennepin County. Ali unrecorded contract
far deeds steall not be vie:ved as proof of o:vnership.
~`- 4. To be eligible to recieve a grant, the applicant must be current
on contract for deed payments, mortgage payments and property
taxes on the property to be improved. If any of these payments
~, are in arrears, they must be made current before the application
can be approved for funding. ~ "
B. Household Gross Annual Income
1. Gross annual income includes:
a. Any public assistance, including, but not limited to: t~el-
fare, AFDC, SSI, and Unemployment Compensation.
b. Salaries (including commissions, bonuses, overtime pay and
tips).
c. Alimony and/or (;hild Support.
d. Interest and dividends.
e. Pensions and Annuities, include P.E.R.A. and Social. Security.
f. Rental income, farm rental income.
g. tstate or Trust income.
h. Business Profit--for self employed individuals, including
farmers and child care/babysitting.
i. Gains from the sale of property.
j. Interest payment received from properties being sold on Con-
tracts for Deed.
k. Partnership.
1. Miscellaneous income.
15
Gross annual income is the income derived from all sources before
tax, or witholding, of all members of the family living in a housing
unit ~includir,g individual non-related adults) for at least nine (y)
r:onths o` the year and who do not pay; rent or ll~'io are claimed as
dependents for federal incoiro tax purposes.!
2. Gross annual ~nco~ne for personstiaving fixed ~ncon~es shall be based
upon annualized weekly or monthly income as of application. For. persons
other than those on fixed incomes, annual income is the anticipated
anhual earnings of the applicant as of the date of application.
3. Gross annual income fora person arho is only temporarily earning the limit
- or less is to be projected on what that person can reasonably be expected
to earn when normal circumstances re-some. This projection can be made
by verifying the income the applicant was earning befare the temporary
situation occurred.
4. Anticipated annual income cannot be based on a temporary condition such as
unemployment. However, if the applicant has been 'unemployed for nine {9)
months or longer and currently has an income at or above a level permitting
maintenance of the household, the grant shall. be given. Personal. and/or
business loans reported as income shall be vievred as a temporary condition.
5. In cases where the Gross Income of the applicant's household is extremely
low the applicant must produce written verification of the monthly expendi-
tures clearly itemizing the amount of money and it's source spent on all of,
but not necessarily only, the following applicable items: Mortgage contract
for deed, insurance, loans, income and property taxes, transportation ex-
penses, charge accounts, hearth costs, food, utilities, clothing and enter
tainment. These expenses shall determne_the household maintenance income
6. Any income determination which results in a net LOSS of income must be
considered as ~0 _income. That is, an income. loss from one .source may not
be subtracted from a separate source of income for the purpo a of determin-
ing total Household Gross Annual income.
7. Any educational Grants, including VA Benefits, which are paid directly to
the individual must be included as income. Grants or scholarships which
are paid directly to an educational institution are not included as income,
nor are educational loans.
8. Projected bonus and/or overtime will be determined by the Grant Administrator
through contacting an employer. The amount may be based on prior years
figures or average amounts awarded to other employees with the .same status.
The most recent IRS tax return-may also be used for these purposes.
9. Self-employed persons may be asked to submit IRS tax returns for the previous
two years. .The Grant Administrator may determine gross annual.income by
averaging the income of the last two years. Normal out-of-pocket business
such as office rent, telephone, etc. are .generally deductible items. Property
or equipment depreciation is not deductible.
10. Income from rental properties, including rents from the property to
be improved, shall be included in Gross Income. Expenses allowable for
deduction .for rental purposes include mortgage interest payment, utilities,
taxes, insurance, and maintenance. In no event shall such deductions..
exceed gross rental income. -
C. Household Adjusted Gross Income
1. Recipients must have an adjusted gross income o~` 57,50U.OU or below
-~
~::~ec ;;ress r;ce:~, ._ dire: as the ~:ross annual income, from
ai sources before taxes or ;;ithnoldin~::, of all members of the
fa;':li`i I1V1~~.~' in ~ "O~~CinC; ;;f}lt (1nCiudi~:: in~'ividu~l non-related
... .:1 ~,; a' : ~ ~ ,... .. ... .. :. ".-.~~~'," 'roa' the :o''s^:,lolu dross
........ , ~ncc: ,..
include all persons livin, in the ho:.~~inc unit for at least
r•ine (9} ^ontils or the year and ~•rro do not pay rent or :rho dre
Claimed dS dep°ndentS .Or federal 1nCCm~ ta:i pUrpOSes.
._ in no case can deductions allo~•1 an applicant arhose gross annual
income is above Section 8 Limits to receive a grant.
Any City wanting to implement the grant procram ~•rith an adjusted
gross income limit exceeding 57500, must submit, in writing, an
explanation of the reasons for the hither level to Hennepin
County for revie~:r.
Z. Standard Deductions
a. First adult resident (1o years or older) 5750.00
b. Second adult resident (18 years or older) 750.00
c. All additional residents, any age, except foster
children (X number of additional residents) 500.00
3. Special Deductions
NOTE: No deduction may be taken under this section unless the
inccme is include d in Household Gross Annual Inceme.
a. The income of adult income recipie nts (18 years maximum of
or older) other than
___
primary inccm
e recipient
5750 each
b. The amount of child care expenses (defined as maximum of
those expenses eligi ble under U.S. Internal 5750 each
Revenue Service tax regulations}
Child care deductions can only be claimed if each parent is
~•rorking a;•~ay from home at least half time. Deductions may
be claimed if care is provided through any of these sources:
1. A licensed clay care sitter
2. A babysitter in the home (not related)
3. A relative (with a bonafide arrangement)
'/erification of such expenses, in file form of receipts, can-
ce~led checks, etc., must accompa m1 the application.
i.
:_
c. 1"he income of any resident (except the pririary into^e recip-
ienr.} ~•rhn is under 18 or a full-ti:-:e student and :•:too is re_
.._ laced by blood, adooticn, or ,carriage to a resident incor:e
reciaient or his/her spouse.
r"' ?~O T E: income recei ved by the oar~nts on be:^.al' of minor chi l -
crap is not deductible. This ircluces, but is not lic:i-
~ed tp, ~GCidl S°CJrlt'! SUr':l`10i'S ~C'n:'~its, Chip sup-
port ^ayrr,ents and ,AFDC.
~;. ?ne ?n~lr°_ a~Qlin~ rec°1`rE.7 u~ ti;n h0::5~^')ld For Fos*
per care.
Sucr ir;co,Te is tha- received uneer the ~irec~ion or any Pub-
l i c or pri va ~e , ~nen-crofi t c'r•i i d p i ac i n ~ agency , or the
court; `fir the care and raintenance o; individuals ~:rhich
were placed in the .household by such an agency. Verifica-
tion of such placement must acco^:cany the hpplicaton.
e. An a:^,ount equal to the total of those medical and other ex-
penses which the Grant Administrator determines to be extra-
ordinary. SUCH EXFEi~~SES fUST BE 'lEPI~i~D A~1D APPROVED BY
THE GRA^~T AD~•lIilISTRA±OR PRIG:R TO TFi~ ACCcPTAt;C~ OF THE AP-
PLICATION BY THE CITY.
f. An amount equal to that anticipated income :vhich is deemed
by the grant Administrator to be anon-recurring nature.
Items for inclusion under this category may include: cash
sales of property,_receipt of one-ti~:~e survivor benefits,
sale of stock, etc.
E;tAt-1PLE OE HOUSEHOLD ACJL'S T -cC GROSS IPICOME
Gross Income
Head of Household earnings 58,000.00
Spouse's income 1,500.00
Income for daughter, age 17 800.00
Interest from savings 60.00 •
Total Gross Incoc~e 510,Yb0.Otl
Deductions
First ad1Jlt resident S 75.0.00
Second ,adult resident 750.00
Daughter, age 17 500.00
Income of spouse, up to 750.00 750.00
Income of daughter 800.00
Total Deductions S 3,550.00
'~ 510,60.00
-? ~~O.OO
HOUSEHOLD ADJUSTED GP,OSS is;CO;•tE - S 5,910.00
0. Asset Cetermination
1. "Gross assets" for purposes of the Hoge I~rorovernent Grant Pro-
gram shall be defined as the current rr~rket :slue or an item.
listed minus existing indebtedness on that ite^~. Fer purposes
of the HcTe I,r,provement Grant Pracra:;;, asseu seal i include the
Following items:
13
•
,.. C...,:~, ,z i acco~~,t~, r,ci,;di _ __ ...,~, ~~,d in ~ .is t.
c. The cash value of life insurance poiici~s.
d. The cash value of securities or U.S. Savincs °onds.
_ e. The current narket value of all interes~s in real estate,
not including the structure to be improved and a parcel of
real property of not more than t:~ro (2) acres on which the
structure is iecated. Included in this determination is
- any land in ~.~hich any resident of the household holds title
or is selling on Contract for Deed. The value. or"Contract
for Deed property shall be der"fined as 100` of the outstand-
ing balance on the contract.
f. All other property/, exclusive of household furnishings,
clothing and one vehicle. This section inc]udes but is not
limited to: farm equipment, boats, sno~•rTObiies, motorcycles,
business machinery, business inventory, farm stock and addi-
` tional vehicles.
2. Recipient's Asset Limit: The gross assets of the Recipient,
• excluding the residential property to be irproved, shall not
exceed 525,000 (as calculated in the ,-'omeo:rner Application for
Grant).
L"
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'
~
tlt' .:('.3ri .,CT1 n1 s ~r:: tOr Sn;: ~ ~ Cv ;.. !) :n~ '; n
1 . C::'1 !T^ ~~C;.',?'~..^.t5 to be
i r,~ ~ .iCiCC i c. .e Gr,ar7 ~ r ~c:u~.._ . _ r . ~ ~ r r,d ap„rcv~.
A. Homeo~:'ner F-onlication ror Grant. This aFpiication shall be completed
_, i n ru i i and. s i greed anc: da red b': the ~~pE~l i can ~.
-The Homeowner Application for urant provides:
1. Household .Information.
Z. Income Information.
3, Assets Determination.
4. Property Information.
B. Property Inspection Report
1. A copy of the initial inspection report must be included in the
Grant Package< Report forms must include the following items:
- a. General. Condition of the Structure..
6. Structural Soundness. _
c. Plumbing Systems including: water supply, waste disposal,
fixtures. and piping system..
d. Heating Systems.
f. Roof.
g. Energy Efficiency including: insulation, infiltration,
windows, doors and ven d lation.
h. General Exterior Conditions.
i. General.Interior Candi b ons.
An explanation should be provided for any deficiency which apaears
on the inspection report bnt does not appear on the Improvements
Certificate for correction. ___r
The inspection report must be signed and dated by zhe inspector
performing the inspection.
2. It is not the intent of the Rehabilitation Grant Program to conduct
inspections to find violations of the City Building Codes. However,
major infractions that constitute a health and/or safety hazard or
seriously diminish the habitability of the residence tivi11 be noted
and explained to homeowner. If the homeowner is determined to be
eTigib]e for a grant, serious infractions will. be remedied at that
time. Should the homeowner not be eligible for grant monies, the
homeowner will be informed of the infration by the City 5uilding
Department and a period of time will be established during which the
infraction would be remedied.
-, n
C. Cc r,-~,ctor-~-'oTeo~•mer arocerlJrps
,n explanation of she bidding procedures, amendment procedures, and.
.f_ co,.,oletion procedures are outlined. Both the contractor and the
homeowner ;hall sign and date the form indicating an understanding
of the procedures. a copy sha71 be given to the contractor,and the
~ ho;reearner, and a copy kept in the applicant file.
D. Scope of Improvements
This listing of all eligible improvements, prioritized by the HRA
from ~:rhich bids shall be prepared must be given to the homeowner..
E. Construction aids
Bids must be obtained from each contractor performing ~rork on the
residence. i;o bid will be accepted without an accompanying Contractor-
Homeo~rrner ;Jarranty form. All bids must conform to the minimum standards
or" the technical specifications.
Work shall be completed ~~rithin the time frame specified on the Contractor-
Homeoti~rner :•Jarranty. The HRA may grant an extension under unusual
circumstances. This extension must be in writing with a copy given to
the homeowner and contractor.
F. Contractor-Homeo:•rner ;Jarranty
Each contractor selected to carry out improvements must sign a warranty
of workmanship and materials provided by the HRA for the protection of
the applicant. This warranty is contained in the Contractor-Homeo~rrner
~:Jarranty. A copy of each bid or estimate for all work to be performed
by each contractor must be attached to the respective Contractor-Homeowner
Warranty. Such bids or estimates must be based on the items set forth
ih the Scope of Improvements. All Contractor-Homeo~~rner Warranties,
accompanied by bids, must be included in the Grant Package.
G. 4Jork Program Agreement - Materials Only Grants
At the option of the HRA an eligible recipient may be alloared to do
some or all of the improvement work themselves, or to supply some or all
of the necessary labor through an agent acting on their behalf, neither
of ~.~hom receives compensation for their services from the proceeds of the
grant. In either case, the individual performing the work shall be referrer
to in these Procedural Guides as the "Performer".
_ The HRA sha 1 1 approve such ~•1ATERIALS 0?JLY GRANTS according to the fo i 1 owl nc_
conditions:
1. The ?er=or~ter shall sign a :•Jork Program :lgreement. Su::h agreement
induces a completior, date, by ~.~hich all ~.~ork must be c~rpieted ~_•~
the aerror~^er. :•Jork should be col^ple*ed within GO to g0 days of the
:awe On ':/R1cn the r'.rn~ iS .ip;.ro'reC n`/ she fi!'.:1 Exte!'SiOns i'i3~ Ce
gr~nteQ by '_ne Grant aCi'tinls~r~o1' aL their' C.r'.ti^,n. UCCn re'!le'.!''J' the
prCrirn~~ 1 ':Orr..
2. „•~? pit'.'.:~' '~c,.:inls,raL;:r nai ~ .,•~ ~a,.i :':~'~] ,:: '^,~ =er'^1'-ergs 5~: ~ i
~r,,l ,: .^, , ;! ~C c?!'. ;r'^ 1~7c'_C i =~ 701' . ^± -.`~` V°S ,,,3teG ::a .e.
`~
~ ~
- 1 .
3. All code related work must ~e done by either the homeowner
or a licensed contractor..
~~ 4. ine Improvements Certificate shall include estimates of the cost
Or materials ,•~ith Homeowner-Contractor ~,~larranties from supplies
and whatever labor costs s,ouid be required to complete .the im-
provements using paid cohtractors.
5. The HRA shall set aside as a "Labor Contingency Fund" the amount
of grant funds ~•~hich it estimates uaould be required to complete
the improvements. using paid contractors. The sum total of the
Labor Contingency Fund and the portion of the grant forwarded to
the recipient for material costs must not exceed the maximum grant
amount.
6. In addition to the initial and final inspection, the hRA must
make at least one interim inspection as specified in the fork
Program Agreement.
7. The Performer shall not order any materials and/or supplies without
the express written authority of the HRA The HRA shall dispurse
all proceeds for materials and/or supplies directly to the suppliers,
excepting when the Performer has paid for the materials and/or
supplies and produces paid receipts to tfie Grant Administrator.
The Grant Administrator shall determine that the materials andlor
supplies have. in r"act been paid for in full, If the materials and/or
supplies were charged, the Grant Administrator must ensure that the
materials and/or supplies are paid for when the HRA issues the
check to the Performer.
8. then the Grant Administrator determines that all or part of the
work has been successfully completed and a Completion Certificate
has been signed, "the HRA may release a portion of the funds desig-
nated for labor costs-to be used for additional materials. AT ALL
_ TI;`~cS, the HRA. must ensure that surficient funds are available to
paid labor to complete the improvements in the event that the
Performer is unable tb do sp. In the event that funds are used for
additional materials, the`Perr"ormer must execute an additional :dork
Agreement for the additional improvements. Under no circumstances
maY the grant exceed the maximum grant. amount.
_ 9, If at the titre of the interim inspection the H'2A determines, at
its discretion, thatthe trork cannot be completed satisfactorily
by the completion date, or ir" at the time of the final inspection
work has not been completed satisfactorily, then the HRA shall be
responsible for retaining contractors to bid on completino the work.
Such contractors and the applicant must execute a Contractor-~!c~^eowner
4Jarranty for the remai ni nc ;•rork .
~2.
~~
: ncc^'~ ~.-- cn
r.l 1 sources of i r,come
Brant must be verified
follc:•rina is a list of
evidence:
i i s led or, the ~'omeo:rner Appl i tali on for
by the Grant hd^~inistrator. EVIDENCE OF
GE I';CLCDEC~ ii; THE GPH.'1T ?F,C~~GE. The
acceptable for~:~s of incor~e verification
1. ;bitten verification from employers or other income providers.
2. Copies of current checks or check stubs.
3. t•lritten statements by the Grant Administrator that the documents
verifying the income have been viewed. Such statements must
_ include a statement of the actual document vie~red, the date the
document was viewed and the full name of the individual who viewed
the document. '
4. IRS forms onl in the case of self-employed individuals (see
Section IV~
5. Statements of deposit from bank.
6. Copies of deposit slips indicating the deposits of a particular
check.
7. Income derived from rent must be verified by the renter in
aariting or by examining copies of checks or rent receipts.
The date of document used in verifying income may not be more than
90 days previous to the date of approval.
I. Asset Verification
All assets listed on the Homeowner Application for Grant must be
verified by the Grant Administrator. EVIDEICE OF SUCH VERIFICATION
MUST BE IP~CLUDED IN THE GRA~JT PACAGc. The fol 1 o~•~i ng i s a 1 i st of
acceptable forms of asset verification evidence:
1. t•Iritten verification from banks, insurance companies or
other asset holders.
_ 2. Written statements by the Grant Administrator that the
documents verifying the assets have been vie:ved. Such
statements must include a statement of the actual document
viewed, the date the document was vie:•red and the full name
of the individual who viewed the document.
The date of document used in verifying assets may not be more than
o0 days previous to the date of approval.
J. individual Data Confidentiality
The applicants rights as a subject of data are fully described in
this form.
K. income ',:orksheet
.- I. Household Gross Annual Income is the incorr.e from ail sources
23.
a
~EtCr~ t~\e5 ;,r WT ;,^-t01 my of dl i reSTCen,,,, Ot the household.
as calcula~ec in S?c~icn 'v'i.
S. Standard and Special Deductions shall be entered as calculated
i n Section `! I .
T
3. The Adjusted Gross Income shail b e the Household Gross Annual
Income minus the total of deductions.
L. Title Verification Form
1.~-The Grant Administrator must obtain the fallowing information
from the Registrar of Deeds regarding each property:
a, The fu11 name of all owners of record, including first
name, last name, middle name or-initial and additional
-names which may appear in the records, such as maiden names.
b. A determination of the system under which the property is
recorded--either Torrens or Abstract.
Z. Upon obtaining this information, the Grant Administrator must
determine that the applicant's individually or in the aggregate
have a qualifying interest in the property consisting of at
least:
a. A valid life estate. Such life estate must be recorded and
must appear in the records of the County; or
b. A 1/3 interest in the fee title. Such interest may be sub-
ject to a mortgage; or
c. A ll3 interest as a purchaser in a contract for deed with
respect to the structure being improved.
3. In addition, the applicants must occupy the property as their
principal place of residence. To consider a property as one's
principal glace of residence, an individual must.:
a. Reside in the property at the time of application (except
where extraordinary circumstances have made the property
.temporarily uninhabitable,.
b. Occupy the property for at least 9 months of the year.
4. For the purpose of complying with ownership requirements, the
recipient may aggregate his interest in such property with the
ownership interest of Other individuals occupying the property
as their principal place or residence.
M. Mortaaae Status Verification
The Grant .4dmi ni s trator must ensure tha ~ the ~:,ortcac°i s ) andlor
contract for deed(s) on the propert:r ~o ~e improved are Current.
The date of the document used ih veri=vino the ,.^ortaaae ardlor contract
for deed may not be more tnan 90 da~rs previous to the date of approval.
The ,.epay^~en ~ r^`'?e"'e^ ~ ,,.,,., „ ;,•~ 1 r.~ i .:C°.. i n ;"_ Gra^ , , ~C:~ a .
.a g,.
r',s sCeCiilE-'C' in the proVislGns 0i trP Repay:ent nCree^•°!lt, the re-
clplent snail be recuirea to note i~J the i-iRr. lr-~:edlately. Upon the
s31e, transfer, CCnVeyanCe Or CeSSatlGn Cf r°s1C~nC,J Of the property.
1 . Each Grant shat i be subject to an Agree.^tent for Repayrent vrhich
provides that in the event that the property upon v;hich the im-
provement is located is sold, transferrea, er other rise conveyed
by the Grant Recipient vrithin seven(7) years r"rcrn the date upon
•which the grant application was approved, or in the event that
such property ceases to be the recipient's principal place of
residence within seven(7) years from the date upon which the
grant application eras approved, then the recipient shall repay
(and the HRA shall have a lien to the extent, permitted by law
on the property as security for such repay:^rent) all or a portion
of such Grant Funds in accordance with the fcllo:•~ing schedule:
Period of time trithin which
sale. transfer, conveyance or
cessation of residency occurs
from time of receipt of orant Percent Repavment
Prior to end of 36th full month 100'
t After end of 3oth full month
~- un ti 1 end of 48th r"ul 1 month 75 ;
After end of 48th full month
until end of 60th full month 50`.:
After end of 60th full month
: unti 1 end of 72nd ful 1 month 25`~
• After end of 72nd full month ;o Repayr~ent
2. Execution of the Repayment Agreement.
,. In order to create a valid lien on the property v,hich has been
improved by Grant runds, the HP,/1 must exercise extreme care in
the. execution of the Repayment Agreement docu:,,ent. Anv inaccur-
acy or omission may have a necative effect on the validity of the
lien.
Prior to the sub„fission cf the Grant ?a c::~~.:e the H~~, should en-
sure the cemoietion or" the follc:rinc_ secticr•s of the Repayrr;ent
~areer*ent only:
a. Property Description.
'~ The property description must be clear, legible, accurate
and complete. Care must be taken to ensure that the de-
scription is exactl as it appears in the property records.
._ If the applicant: ovens property other than on which the
structure to be improved is located., only the description
of the property on which the structure is located should be
i nci uded. .
~;. ~ic;natures.
The record names (the i~arnes ex~~ctl,~ as they ao~ear in the
~~ropcrty records). nu~st be used by all ~~rhose signatures are
required.
The following is a brief discussion of the signatures re-
quired under particular property ownership situations:
1. Any JOINT TENANCY -- signatures of all joint tenants are
required.
'L. Property held by ONE SPOUSE.-- signatures of QOTH spouses
are required.
3. Property held in LIFE ESTATE -- signatures of the appli-
cant (life estate holder) and signature of sufficient
remaindermen to comprise at least 1/3 interest. (Exam-
ple: if there are 12 remaindermen in .title, the signa-
tares of 4 of them are required to comprise 1/3 interest,
assuming equal interest for all).
4. Property being purchased on CONTRACT FOR DEED -- signa-
tures of the applicant .and all individuals who are ag-
gregating their interest to meet the-. ownership require-
ment; and the fee title holder (and spouse or others, as
applicable) of the property; and the signatures of any
intervening. vendees of the Contract for Deed..
c. Notarization of Signatures.
1. Ail required signatures must be notarized, including
the "mark" of a signator who. is unable to write (such
a mark must be witnessed by at least t4ro persons other
than i;he notary). Additional acknowledgements may be
added to the Repayment Agreement form to accommodate
any necessary notarizations.
2. All dates (except those in the notary's acknowledge-
men u) in the Repaymen Agreement shall be left blank
at the time-that the Grant Package is submitted.
The HRA has three options with regard to obtaining the•sig-
nature of the homeowner on the Repayment Agreement.
It is recommended that the Grant amount in the Repayment
Agreement be left blank at the time the Grant Package is sub-
mitted. This allows the HRA flexibility with regard to
Amendment Requests by not requiring a net•~ agreement to be
signed should the grant amount change upon completion of the
work .
the HRA may accept the document with the. maximum grant amount
in place, recognizing that upon completion of the grant,
26.
nc~.;l~ ~^e to~~' ~` the ~r~or~: nc~ equal the maximum
..,'ant . Tcun t ex::c t i a ne~.r ccc.:Ten ` must be executed.
" the hcmec~:~ner refuses to sign a blank repayment.
agreement and also refuses to sign a repayment agreement
indicating the maximum grant amour•t, the Grant Administrator
shall require that the homeo~•rner lion the repayment
agreement which has the total of the selected bids inserted
as the grant amount. The Grant Administrator shall in writing
inform the homeowner and all selected contractors that no
amendments to the grant amount will be approved arithout
first obtaining a signed repayment agreement indicating the
altered grant amount.
The Repayment Agreement shall be filed with the proper re-
cording office, i.e. the Registrar of Deeds or Registrar of
Titles for Hennepin County, in such a manner as to create a
valid lien against the property,. on all properties improved
with Grant Funds, provided that the creation of such a lien
• is permitted by law. It is the responsibility of the H RA
to record this agreement with the proper recording office after
the improvements are completed.
If any Grant Funds are used for purposes other than an eli-
gible improvement upon eligible property or if the Recipient's
Application is found to contain a material misstatement of
fact, the Recipient shall be liable for repayment of all or
part of the originally approved Grant Funds in accordance with
the remedies contained in the improvements Certificate. In
addition, any fraudulent use of funds may subject the recipient
to fines and/or imprisonment under the Minnesota Criminal Code.
0. Prior Approval
The Grant Administrator will notify the homeowner that a prior approval
has been given to proceed with the stated work to correct the emergency
situation at the house, indicating the approved contractor and costs.
P. Improvements Certificate
All improvements approved to be done to the residence shall be listed
with contractor performing the work indicated and the associated costs.
s
1. This form lists the work to be done by item and contractor per-
forming and a breakdotm of costs by item and contractor.
2. The total of the test for ;:ork to be performed shah be iisted
where indicated. The maximum grant amount shall not exceed the
lesser of: r
• -~i,~00; Or
-The actual cost of the tivor: performed.
F:'CEPT in the case of accessibility i^orovet^ents for har,dicanoed
individuals, where a grant may exceed the maxi,,,u;n avant amount
by an amount, up to S2,500, r"or improvements ::hicti increase t:^.e
dCC2551b111ty of the property to nar•dicapped individuals. An
27.
a~.;,~.. - _ ,,.r ~s~ c. ~~~, ~o a..... ,_r - loan ;rcr; any
Si.:.i~~ ~. .''?R... iC.r,S. -:~~ ~tr^; dfl.• CQI'... ~'0!1; _ ~~' -L!S '~ COn~Unc.-
E •~ i r.
_ ~.tI' .:' :.. GY ~v , .% 1 CG;t?n ~ .:t'~ r~~ UI?C~ S"1 .. i `..^.~ ~ Uncer any ci rcum-
--- S~:.riC'.~.j ~E.'~1 1.::Iilll „~~~~ T~r"u. ~ir',:nt. 'n0 c;^.:~)~Jii~,. Cif funds received
''?'^;'1 lii,i^~t'I' Si7l1rC~5 Shd1 { f`: ~ T'°'';iCE' ~ilp ~:.nr"•tSS1:~It ~fiount of the
-- - -
~~~-9nt.
nny IiRA granting to implement the grant proc;ram tiri :h a grant amount
;. ceviatirg from Si,5C0, must submi t, in ;rri tir,r., an explanation of the
reasons for the deviation, to iennepin Couhty for review.
3. In the case of ?•lork Program Agreements; the estimated cost of labor
sha11 be added in to the total grant amount until the arork to be done
by the homeowher is completed.
Q. Oata on Individual Grants and Loans
The Grant Administrator is required to complete this form for each grant
package which. provides information pertaining to environmental assessment,
historical preservation, Section 8 Quality 8ausing Standards, and census
tract data.
R. Proceed to l~lork Order
Forwarded to both the homeowner and contractors, this letter states the
approved grant amount, date of approval and-gi~~es the authorisation far
- the arork to begin as per the bids tncl udi ng any "outlined chanaes i n the
bids. -
S. Amendment Request
The form outlines ail chanaes in
additions or subtractions,rby ea
contractor and the homeowner and
revised bid must be attached.
T. Con~ractor Bi11s
Bills must be obtained r"rom each
the approved grant amount,. either
~h contractor. It must be signed by the
approved by the Grant Administrator. A
contractor performing work on the residence.
U. Comoletion Certir"irate
This form should be signed by the homeowner and-the contractor when the
grant work undertaken by the contractor is comple~ed. If the arork requires
a building. permit, or if code arork is involved, then t.".e relevant Inspector
should sign in the space provided. If the apprcvai of r~ore than one Inspector
is rewired, then copies of the ~nsoecton ;;atice{s) should be attached. The
Completion Certificate must always be accompanied by a bill for the ~~ork gone.
For procedures in :the .event of an homeowner refusinc to sicn a Cc..,pletion
Certificate see Section IX.
28.
i
.. =..~~3~rc'^,3r•r ~'e~~~a' "menses
_xcraordinary Tedical expenses are definea as ~:;edical expenses, not compensated
;or or covered by insurance, in excess or three-percent o` total family income,
=er the rurpose of deter*~ining extraordinary medical expenses, the Grant
Ad,.,inistrator should consider the medical expenses incurred by the family in
the preceding year (including medical insurance rremiums, if any) as well as
circumstances that might increase or decrease the family's medical expense
in the coming year.
i•tedical expenses may include, but are not limited to:
h?edical and dental insurance premiums (including ,•~e~icare)
` Transportation expenses directly related to medical treatment
• Prescription and nonprescription medicines
t- ;ledical service charges (Doctor, dentist, hospital, clinic, etc.}
Health related equipment costs (orthopedic, hearing, etc.}
Costs paid by resident to live-in a tendant.
s: T'ne following are examples of appropriate verification:
~lerification by a doctor, hospital or clinic personnel, dentist, pharmacists,
etc., or" the estimated medical costs to be incurred by the applicant ~rhich are
not covered by insurance, as well as regular payments expected to be made on
outstanding medical bills.
Confirmation by appropriate insurance companies or e^~ployers on health insur-
ance premium costs paid by the applicant.
Co~~~nuni cati on from the Social Security r~dmi ni strati on or' insurance premium
costs for medicare paid by the applicant.
Confirmation of payment received by a live-in attendant frcm the applicant.
The following are examples or" documents that could be provided by the resident:
Receipts,cancelied checks, pay StL'b5 which indicate health insurance
premium CDStS, etc., which veri,"y medical expenses likely to also be
incurred for the ensuing 12-month period.
Copies of income tax forms which include itemized medical expense where
expenses far the ensuing 12-month period are not expected ~c cn~nce.
Copies of cancelled chec'.<s :•rh i ch veri f~~ the payments ~.~ade to a 1 i `~e-i n
attendant.
Copies of cancelled Checks which veri=~~ payments ~:~ade ~n cutstandln9
medical bills which will continue for all cr part o` t"e ensuing 12-~~,cnt~
period.
Record of payment or sc:.edu i e J" ~dY~'ents aGr°Cr ~~ r'% =^,e ter'-~ i ~~•*
Show1 riq r°s i Gent has been :rak 1 ng ~3vme.^,;.~ :nom :'l l 5 1 n ~°'1 ~ _.. ;..^ ~' nuo
pay??e!1 t'.S Untl i balance i s C i e3r?'1. r
29.
1 . The HR~~ a;i 11 process ap_~1 i Ceti ons u>i r,r, yhe first core, first
served selection cri teri a es tabl i shed by ti.e li?I°, as required in
Section III-C of these Procedural Guides..`
Tt~e HR,~ objectives are to encourage necessar} improvements
whereby the structure will be reasonably livable, safe, habita-
ble anal energy efficient.
2. Applications will be .accepted as follol;~s.
a. Applicants must submit their request fora Rehabilitation
Grant on an Urban Hennepin County Grant noolication form.
It should be submitted to the City F;a11. Grant Packages
shall be submitted to the {iRA containing all of ttie docu-
ments listed in Section VII of these Procedural Guides.
b. The NRA grill review the individual pac'•;aaes using the '
qualifications as outlined in Section ~!I.
The HRA may re-turn unacceptable packages. for correction
and resubmission, or may hold them until the necessary in-
formation is provided after notification of same to home-
o:vner. The grant applicant 4ri l l be notified of approval or
denial in writing.
c. Any applicant tivho is denied fundinn may re-apply after 90
days and be reconsidered on the basis of ne.•, information.
r
d. The decision of the HRA staff tirll be final ; ho:•.ever, appeals
may be made in those cases lrhere applicants believe they
~•rere not treated equitably. Appeals shall oe in ~•rritten form
and submitted to the grant administrator in the city out-
lining the applicant's concerns. .The appeal shall be
evaluated in the folloti•~ing manner:.
l} A committee of NRA staff mill evaluate the appeal.
If a solution by the staff is r•ot reached, the case
ti•rill be referred to the Executive Director of the t;nA
.for review.
2J A reply in written form to ti)e a~apeal ~•rill be sent to
the applicant arithin 15 days.
3) I f ..the applicant Ali sties to appal furth~.~r•, tira appeal
gill be for:•rarded to the ilf;,"~ C~c::::iSSioners for ~~ final
deters»i nation at their ni?~;t scheduled r:oe~inn.
+~ if, diteT' th1S 1'C'V1E?1.1 ;)1"OCC°. `_, ~i~il~7rC'~9;"nil~ 1C $`,111
ovident, the 4{RA stipule; con~:~ct ~rr`.;~n !it'nnenir Coi:nt;
tO (acd?<3tE' the S1tUdtiCn ;C) ~•; `Q f?(i":ir),~.tt^~;~tlti;ll
c~,nfrontati~ns i:et,~reen ~hr~ ;fi,;, ari~1 ;;he ~~rpliC~n~.
f
w
30.
-- u. ;~`i f'i ^.'.}~^~~. !lam •ro`;~ 4
;ho 1i,;;:, a.~ill fnr~:r~trd th~~ fo1;a.~ing notificatior, renarding Grant
Facr;ag'?s l•Jh1C!1 drC det~rr~lr~ed ~0 ?iE' dCCeDta:)l~' and complete:
• 1. Each approved grant ~•;i11 appear on a °roceed to :dork Order,
listed by last name o` the recipient and indicating the ap-
proved dollar amount of the grant.
2. Tie Repayment Agreement for each approved grant ~•rill be tempor-
arily held by the Grant Administrator. The Pepayment Agreement
a~ill have been executed by the HRA and. dated according to the
' date on ~•Jhich the application ~•Jas approved. Receipt of such
notification tivill signify authorization for the immediate
• conrnencement of ~•JOrk on the properties represented by the
specified grants. Such notification also authorizes the
disbursement of funds to contractors tenon successful completion
of improvement ~::ork.
t
--
~• 31.
L._
.. ^ r ,'v r
ri. rCl~~i~~t~Q.i ,Cecures
V._.
?ao
grant will be considered co.rplete until the following steps
- hav e been accomplished:
1. Inspection of the Property - All improvement work, as specified
in the Improvements Certificate must be inspected for complete-
ness, conformity to specification and quality. of workmanship.
The HRA .must require completion or correction of any item found
lacking. failure of a contractor to comply with such a request
-
`` for completion or correction of work may be considered grounds
, for .the HRA to withhold all or part of the payment due to the
~ contractor.
2. .Completion Certificate - Following the final inspection and sue-
cessful completion of work, the Completion Certificate must be
signed by the Recipient, all of the contractors who performed
~~ work on the property, the inspector of the property, and
~. the Grant Administrator. In the event that the homeowner will
.
not sign the Completion Certificate, payment can be issued to the
contractor provided that the contractor, the inspector, and the
~~ grant administrator ail sign the Completion Certificate indicating
_ that the work tivas done. properly and a letter vrritten by the grant
administrator is attached outlining in detail the situation resulti
i
in the recipient-refusing to sign the GompTetion Certificate.
`- 3. Recording of the Repayment Agreement - The Grant Administrator
must insert the final amount of the grant in the Repayment Agree-
went and check the document.-for completeness and accuracy.
The Repayment Agreement_must then be recorded by the Grant Adrsini-
strator with the Registrar of Deeds or the Registrar of Titles of
Hennepin County.
NO?E: For property registered according. to the Torrens System,
~ the Repayment Agreement must be accompanied by Owner's
~_ Duplicate Certificate of Title at the time of recordin4.
Also, documents recorded on Torrens property are not re-
, turned to the person requesting the recording. Therefore,
~ the Grant Administrator must either retain a copy of the
_
agreement prior to recording and obtain the .recording in-
formation (Document number} from the Recorder, or must ob-
f
E twin a Certified Copy of the document after recordinv.
Following recording, the Grant Administrator sha11 arovide a
copy of the recorded Repayment Aereement to the Recipient.
6. Disbursement Procedures.
PJo
~ disbursement of funds shall be made until the HRA is in receipt of:
__
1.
a completion certificate signed 5v the contractor, hcreo~•rner and '~
V
~ inspector
2. a bi 1 1 from. the contractor for the amount of the ~•;ork performed
'• 3. 1 i en '.vial viers provided by the contr~ctcr for the ar^.ount of the. work
performed
~~
Tiie HRA shall obtain a bill from each contractor. The bill may
then be paid to the contractor using funds from the amity's general
revenue fund. To be reimbursed by Hennepin County, the HRA must
forward to the County the fo1lo~~ring:
1. Income 4lorksheet (need to submit only one per client)
2. Signed Completion Certificates and all amendments
3. A copy of Data on Individual grants and loans(submit one per client)
4. Contractor's Invoice (bill)
5. A copy of the city's check to the contractor (proof of payment)
6. Summary of Pro,i^ct Disbursement Sheet
7. Signed Warrant Request
Administration costs for housing rehabilitation should be billed directly
to the project not general administration.
Housing rehabilitation funds must be drawn down from the earliest program
year with remaining funds regardless of which grant expenses are being
reimbursed.
All program income generated from housing rehabilitation (i.e. repayments)
must be returned to ~;ennepin County for reprogramming into the applicable
Housing rehabilitation program of the HRA.
.Submit only copies of items 1 through 5. The originals must remain in the
applicant files...
Hennepin County will then issue a check to the City to be deposited into
the City's general revenue fund.
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X. PRIOR APPRO'lAL GuIC~': ??dES i
A. The HRA may from time to time authcrize a Prior Approva} for the ~^r
purpose of making Home Improvement Grant funds more readily acres-
sible to eligi5le app icants under extraordinary circ:,~mstances.
G. Prior Approval allows the HRA to authorize `r~ork to begin on a
residence before the Grant Package has been submitted. The Grant
Package should be completed and submitted as soon as possible foi-
lowing the issuance of the Prior Approval... It is imperative that
the income of the recipient be acceptable under the income o_uide-
lines as stated in Section VI.
C. The following conditions shall apply to a Prior Approval, provided that:
1. Applications are received in the r'orm cf acca~~able Grant Packaees~
as set forth in Section VII. r
2. Applications meet ail eligibility require~r;ents as set forth in
Section 'lI.
3. In addition to the other verifications repaired in the Procedural
Guides, the HRA shall also: provide verifica~ion that:
a. the dwelling unit contains defects or deficiencies which, if
left uncorrected, ~.vould render the unit immediately unihhabitabl~
or l.hat
b. such defects are the direct result of occurrences alhich include,
but-are not limited to: natural .causes such as floods,.
tornados, fires, blizcards, and stores; er mechanical failures
such as burst pipes and furnace brew::-da:vns; or that
c. extraordinary circumstances force the ~•rork to proceAd immediataiy
.fora delay wi71 greatly increase the cost of the work and./or
delay in approval •.vill force a postcone:~ent o the work until
a much later date than necessary in nor~^al circumstances; i.e.,
changing weather cbnditions.
0. The HRA may require additional information ::hick will aid in its
determination of the compelling merits of each case. Ali decisions
shall be made.. by the HRA as-its sole discretion.
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,=i . i~.C C °_ $ S ' ~ 1 ' i ': '; T r±^^, rn •;r n r-, r~ r~ r S
l . Access i bi 1 i ty Ir;:pro~:e,^.:ents may. i ncl udt
a. Strucutral Improve~:ents:
Construction, installation or „codification of ramps, hand-
rails, kickplates and door widths; repair or replacement of
doors; relocation of doorways; installation or lever-action
hardtivare; construction or expansion of rooms.
b. Exterior Improvements:
Construction of exterior ramps, railings, walktivays, landings
and porch extensions; site grading and other site improvements.
c. Bathroom Improvements:
Installation of elevated water closets, grab bars, shower stalls,
tub seats, hand-held showers, accessible sinks, electrical
outlets, medicine cabinets and other accessories; modification or
expansion of bathroom area to allow a five foot turning radius.
d. Kitchen Improvements:
Construction, modification or replacement of cupboards or shelves
to provide access to sinks, cook tops, ovens or storage areas;
installation of accessible electrical outlets and switches,
lever-action hardware, garbage disposals; insulation of hat
water pipes; modification or expansion of kitchen area to allow
for a five-foot turning radius in the workspace; installation
of "lazy susans" in cupboards; replacement of floor covering in
order to improve ~vheelir,g surface.
e. Other Improvements:
In exceptional circumstances, installation of central air-
conditioning and/or stair glides or electric lifts ~,vhen the
need for these improvements is verified by the Handicapped
Person's doctor in writing.
Improvements which are not determined by the Grant Administrator
to be eligible as Accessibility Improvements ..:ay be fur•ded under
the ather provisions of these Procedural Guides.
6. Recuirements for ?articioation
Grants mar be made to Handicapped Persons `or Accessibility Improvements
only if the conditions of Section '!I !except the portion thereon
relating to Eligibility of Improvements;, of these ?recedur~l Guides
have been 'oily satisfied.
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35.
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In no event may a Grant for accessibility Improvements exceed
_ SC,SCG over the- I-~F;1~ maximum grant amount as siatec' in Section
'.'II. Ir" a Grant is made both for Accessibility Improvements and
for other Eligible Improvements pursuant to these Procedural Guides,
.then under no circumstances should the amount for the non-handicap
improvements exceed the maximum arant amount as s;.ated in Section VII.
_ 0. Responsibility of the H,RA
'fJith respect to Grant for Accessibility Improvements, the HRA shall:
1. B e governed by the general conditicns set forth. in Section II
of these Procedural Guides.
2. Assist the Handicapped Person with the preparation of the
Application form, upon_reGuest. Such assistance shall include
a personal visit by the Grant Administrator to the home of the
Handicap®ed Person, or to any other reasonable location which is
accessible to the Handicapped Person when the offices housing the
Grant Administrator are hoL deemed accessible in accordance with
Chapter 751.,. Laws of Minnesota, 19i3.
3. Carry out the duties. reGuir•ed of the ,y pp pursuant to Section-III,` .
except. Section IIL-C of these Procedural Guides, including the
.duty to complete :the Grant Package for Accessibility Improvements.
A comolet~ Grant Package for Accessibility shall include all
required materials.:
4. Standard Procedure Submission & Revie:•~ of :'ccessibil itv Pacl:aee
In addition to all of the following docur:ents described in
Section VII of the Grant Package for a Handicapped Accessibility
Grant must include:
a. .Accessibility Improvements Inventory -- ccntaining a description
of the Accessibility improvements to be made;
b. Accessibility Improvements Certificate -- containing a
description of:
1. the level and specific type of disability experienced by
the Handicapped Person; and
_ 2. ..the specific Accessibility Improvements reeuested;
c. °ids from contractors;
d. ;=,rchi tectura 1 ~ratii ngs;
e. ring other materials rec~est~~.
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It is the poiic~r of t~ennepin Ccunt/ to preside equal zccess to employ-
ment, pregrzms and services ~.vithout reeard to race, color, creed,
religion, age, sex, handicap, marital status, af=ectional preference,
public assistance, criminal record, or national origin.
A11 programs financed through or administered by Urban Hennepin County
tivill contain equal opportunity/affirmative action requirements in the
Procedural Guides. All participating com<<,unities programming Cormunity
_ Development Block Grant monies to housing rehabilitation grants anal/or
to public facilities grants will adhere to the equal ooportunity/affir-
native action statement above.
~~ Areas not specifically mentioned in this statement brill still be
governed by the spirit or this statement.
If an applicant or grant recipient believes they have been discrimi-
nated against, they should contact the Affirmative Action Programs
Department, A-303 Government Center, ftinneapolis, ftinnesota, 56487,
348-4096.
B. The ;iRA shall have Fu11 responsibility for program implementation
including public information, revie~ring and screening applicants,
choosing recipients, and assuring that :work .vi11 be satisfactorily
completed.
C. PJo application, processing, or other fees shall be charged to an
applicant.
37.
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i. Tile pur,.os` o= this progra.;: is to assist low and mocerate
i:.come pCOale c.ho have aroblems wit stor^I water runoff.
There :~°ill be $15, 000 in CDDG funds set aside annually to
be used for flood grants. If these fu:~ds are net expended
by the end of the program year, the funds a: ill be made
available for CDDG grants. The foliosainc criteria will
apply to any application for a Mood Grant:
a. Applicant Selection
Applications will be processed and grants funded on a
first come, first serve basis.
b. Ownership
1. The recipients must individually or in the aggregate
have at least:
a. A life estate;
b. A one-third interest in the fee title;
c. A one-third interest as purchaser in a contract
for deed respect to the structure to be improved
and must occupy such property as their principal
place of residence.
2. A11 individuals occupying the structure to be improved
as their principal place of residence and having an
ownership interest in such structure must join in the
application.
3. ~'or the purpose of this progra;, o~~'nershia shall be
based on the information recorded in ~ienncpin Cou;,ty.
All unrecorded contracts for deed shall not be viewed
as proof of ownership.
4. To be eligible to receive a Grant, the applicant r,~ust
be current on contract fey deed payt:ICnts, mortgage
payments and property ta::es on t'ze propert,:' to be
improved. If any of these pa,.•^lents are in arrears,
they must be made current be::ore the appli.:atioi: can
be approved for funding.
c. Income and ~'~ssets
The fam111~ c,'.roSS 1nCOmC .^.II:St IlOt t_'::CLt'c: :~CCt10:`. r :^.'.O~ttir'3tC
.._ 1nCO:Y:C llmi~.J aniiuall~r ~:nc: t}li? .I:.i`.i:_'t;~ i•:, +,_ilt_' ,:IU!)11~.:JI1t,
Other than t;7C 'Jalue Oi L::e ;1o:~iL' I?t.'1::.: i.^:'.7T0~'C.~, .;',]: t :.vt
exc~ecl $25,000. .
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e. ~oninq
1. The property to be improved :I,u_t not be in violation
of applicable zon~.ncY ordinances .
2. The property must be located c•:ithin the city, and must be
used primarily for re;idor.tial purposes.
f. Elic,ible Imz~rovements
Residential properties are to be improved to allow compli-
ance with municipal health, builcin~, fire prevention and
housing maintenance codes and/or meet environmental ~...
standards applicable to housira, when flood related damage
has occurred. full compliance with all codes will not be
required for grant eligiblity, and no application for a
grant for property occupied by the o~tiner shall be denied
.solely because the improvements will not bring such property
into full compliance with all such codes and standards.
Repairs not related to flood damage will be funded through
established CDBG and L`1HFA home improvementgrant programs.
g. Inelicribie Items ~,
Refinancing of existing debts or mortcages, payments for
public improvement assessments, financing of luxury items
or improvements (dishwashers, patios, fireplaces, etc.)
caill not be allo~•:ed.
h. Competitive Bids ~--
All work must have a minir,.um of two co.:,petitive bids. An
exception to this policy may be :Wade .hen, due to the
nature of the repairs, the work must be done immediately.
i. 6.7ork Program Agreement - ^:~aterials Only
Rehabilitation work by an individual oc•:ner-occupant will
be allowed in accordance with the [•1or}: Program ygreement -
Materials Only in section VII G of the CDLG procedural
guidelines.
j. Insurance Requirement
A homeowner, when receiving more than 51,000 in flood
grants, either a separate grant or accu::,ulation of the
grants, must apply for and maintain IIomeocaner's Flood
Insurance. If the ho:,ieowner is within Section S very
low income limits, relief from this requirement may be
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r,ra::te:. ~>~• the Fii`.. ~:~~,_ ...loo:? Irsurc::c~, ~'o} ic~~ must be
ac __~~~ _cr •~:y~..~:: ... _ ~.~,_ ...., c.' the t_...~ t e Mood grant
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The seven vear repayme::t agreemc::t is required according to
Section VII N. i:: the CD~G r_,uidelines