1 George Mensah City of Miami

Best Practices Pointers 2 Policy & Procedures Manual Intake Process Security Instrument Initial scope of work Contractor list Bidding process Construction contracts Reimbursement Process

Polices and Procedures Manual 3 HUD expects that you have one but you also need one for your sanity. Build in exceptions to policy process so you don’t box yourself into situations where it makes sense but you are limited by your policy.

Intake Process 4 Most issues related to the rehabilitation program can be eliminated with a good intake process Intake staff should be knowledgeable about the entire process Have a document that can be signed by the client which includes all the important information you want client to know about the rehab process.

Security Instrument 5 How do you protect the investment you will make in this property to ensure that the homeowner does not turn around and sell the property the next day? Most who make it a loan secures it with a second mortgage Most who make it a grant secure it with a covenant How about a covenant with a mortgage?

Initial Scope of Work 6 This is a second opportunity for the homeowner to better understand the rehab process Very important that the inspector understand what can be repaired under the program and what cannot be repaired An explanation of the material specifications under the program. (example replacing an existing broken ceramic tiles in a bathroom with travertine tiles or replacing of roof shingles with tiles). Request for installation of appliances, such as fans, that did not exist before.

Contractor List 7 Maintaining a qualified list of contractors is critical to a successful implementation of a rehabilitation program. List should be refreshed annually (remove bad contractors) Find a way to continuously add new contractors (don’t forget making extra effort to have minority contractors) Contractor list should not be the only way a contractor can participate in your program.

Bidding Process 8 Send job specification to all contractors on your list. Leave a copy with the homeowner just in case he/she knows a qualified contractor Pre-bid conference on site is always preferable to allow all the contractors to see what is required to be repaired. How much time is allowed for bidding? 2 weeks or 4 weeks?

Construction Contracts 9 Who executes what contract? Contract between should only be to homeowner and contractor Addendum to Homeowner –contractor contract to include disbursement conditions Act only as a lender and don’t execute a contract between your city and the contractor

Reimbursement Process 10 Reimbursement process should be an addendum to the contract between homeowner and contractor Inspector reviews work done (as a lender) Homeowner approves payment to be made to the contractor Give yourself the ability to make payment directly to contractor without homeowner approval if the work has been completed and homeowner still refuses to approve payment to the contractor

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