1. City of Eagle Pass, Texas TxCDBG Contract 712420 HOUSING REHABILIATION

2. OUTLINE Background Program Objectives Administration of the Program Eligibility Application Process Selection Process Program Process

3. Background The City was awarded $95,324 through the Texas Community Development Block Grant Program for Housing Rehabilitation. The City is obligated to match $14,299 for a total project cost of $109,623.

4. Background The Program will award four (4) applicants up to $25,000 for rehabilitation costs in the form of a five (5) year forgivable loans. These guidelines will establish the procedures for eligibility, the application and selection process, and the overall administration of the project.

5. Program Objective The primary objective is to provide decent, safe, and sanitary housing for disabled low to very low income applicant homeowners by the rehabilitation of substandard, single family, owner ‑ occupied dwelling units.

6. Administration of the Program The following are the designated administrators of the program: City ManagerAuthorizing Official Planning DirectorRehabilitation Coordinator Finance DirectorFinancial & Records Official

7. Eligibility HOMEOWNER ELIGIBITY Must meet income thresholds Must be able to supply proof of ownership Must have owned and occupied the unit for at least five (5) years Must be able to supply proof that they are current on property taxes or supply tax deferral documentation Must supply fire and casualty insurance. If located in the flood hazard area, must also supply flood insurance.

8. Eligibility Income Thresholds are established by HUD and are based on the Area Median Family Income

9. Eligibility PROPERTY ELIGIBITY Must be a single-family, owner-occupied unit Mobile homes are not eligible Must be located within city limits Must be valued at less than $100,000 Units previously rehabilitated are not eligible Repairs necessary to meet HUD Housing Quality Standards may not exceed $25,000 Necessary improvements must be permanent in nature

10. Application Process 30-Day Application Period Documentation Requirements – Income/Asset Documentation – Copy of Identification Records for each Inhabitant – Proof of Military Service (if applicable) – Proof of Disability (if applicable) – Property Tax Documentation – Ownership Documentation – Proof of Insurance

11. Selection Process PRIMARY SCORING OF APPLICATIONS Top 10 Scores will undergo a preliminary inspection List of code deficiencies and cost estimate will be prepared (HUD checklist)

12. Selection Process SECONDARY SCORING OF APPLICATIONS Primary Repairs are defined as roof, electrical, plumbing, or structural repairs necessary to ensure the safety of the inhabitants as deemed by the Rehabilitation Coordinator. The four (4) applicants with the highest total Primary and Secondary Score shall be selected. Tie Breakers 1)Highest total beneficiaries 2)Lowest percentage of income limits

13. Program Process Secondary Inspection & Scope of Work Secondary Inspection to verify findings of preliminary inspection Official Work Write-Up and Cost Estimates are prepared Submitted to the Texas Department of Agriculture for approval

14. Program Process Bidding Process and Contractor Selection Pre-Qualification of Bidders: 1) Advertisement for pre-qualification 2) Verification of contractor eligibility Bids 1) Scope of work provided to all qualified bidders 2) City receives all bids and presents to homeowner

15. Program Process Bidding Process and Contractor Selection (Cont’) Selection: 1) Homeowner makes selection of a contractor: a) with a bid within 15% of the cost estimate; and b) with no direct conflict of interest Approval: City Council will be presented all documentation to consider approval of the rehabilitation assistance loan to the homeowner.

16. Program Process Promissory Agreement: City & Homeowner(s) Assistance will be in the form of a five (5) year, zero-interest, forgivable loan (forgiven at a rate of 20% annually). Property Liens shall be imposed until agreements conditions are met.

17. Program Process Construction Pre-Construction Conference – The City, the homeowner, and the contractor will meet to discuss the requirements of the project and the work to be completed. Homeowner & Contractor Agreement – The homeowner and the contractor must sign a construction agreement.

18. Program Process Construction Inspections – Inspections will be preformed periodically to monitor progress on the scope of work. – Inspections are required prior to issuing payment. Completion – Final Inspection will be scheduled by the contractor. – If approved by Rehabilitation Coordinator, final payment will be processed.

19. Program Process Complaints and Disputes All complaints and disputes must be submitted in writing to the Rehabilitation Coordinator. If the City is unable to successfully resolve any complaint, the complaint is to be submitted to the Texas Department of Agriculture for final determination.