HomeMy WebLinkAbout1977-06-07 Info Packet.,
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City of Iowa City
IF
IVIEIVIORAt®lUli/1
- TO: Neal G. Berlin, City Manager DATE: May 25, 1977
FROM: Tony Rushnir, Asst. City Attorney �� V
RE: Rock Island/Lafayette Street Bridge
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As you recall, the City of Iowa City has been negotiating with
the RockIsland Railroad Ccnpany for a settlement of expenses incurred
by the Rock Island for the Maiden Lane Bridge --Lafayette Street project.
For your information,,a brief and concise history of the project in a
form of a memo from GeorgelBonnett, then City Engineer, to Dick
Plastino, is attached to this memorandum. The Railroad Company on
November 20,'1975, sent a letter to Mr. Patrick'Strabala, then Director
of Finance, listing & schedule of bills which at; that time were still
outstanding. This schedule reflected an outstanding amount totaling
$29,008.60. As you recall, there was some question as to whether any
of: this outstanding amount reflected the cost incurred for the construc-
tion of the Lafayette Street bridge which: was never constructed.
In reviewing the original agreement between the City and the
Rock Island Railroad concerning project, rnthe -ect, there has been se
question in my mind whether the agreement in fact included the oonstruc-
tion of the Lafayette Street bridge. In fact, this concern was reflected
in a letter to Mr. Ralph E. Speer, then Director of Public,Works, on
October 8, 1977, fromthe Chief Engineer.of the Rack Island. At that
time the agreement was modified, or rather clarified, to include the
Lafayette Street bridge.'' The Chief Engineer for 'Rock 'Island then
requested Mr.Speer's-approval of the clarification. Ralph Speer
signed the approval on March 22, 1972.
The question then arose as to whether Mr. Speer was authorized'
tosign the mrodificationand'thatwhether:said signature bound the
City to it. ,This is important in the context that should Mr. Speer!s
signature not bind the City then any expenses incurred by ,the Rock
Island on the, construction' of the Lafayette Street bridge iwould be at
their own peril. Because'of'the potential impact of the authorization
on the contract, :I researched the minutes of the Council meetings eon-
ceming the acceptance of the project and spoke with Jay Honohan who
was' the attorney, for the City at that time, along with George Bonnett,
then City',,Engineer. All three, sources confirmed that the agreement was
to include the Lafayette', Street bridge as well. I am enclosing a copy
of the minutes of a regular Council meeting on June 15, 1971. My con
versations with Mr. Honohan'and Mr. Bonnett confirmed what I read in
the minutes,''that is, that the agreement between the City and the Rock
Island was to'include 'the construction of the bridge at Lafayette
Street as ,well as the work on Lafayette Street and the reconstruction
of the Maiden Lane -Gilbert Street overpass.
a
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Accordingly, it's my opinion that the clarification signed
by Mr. Speer reflected the intent of the City Council and thus
a legal obligation was created on the part of the City to pay
for services and labor with respect to the Lafayette Street
bridge. It's my understanding that during the Fall of 1972 then
City Manager, Ray Wells, directed the Department of Public Works'
to discontinue any additional work on the Lafayette Street bridge
in that there was'sam feeling that the bridge was no longer
required.
It was the railroad's position that labor and services were
performedwith respect to the Lafayette Street bridge/Street project
which they were not reimbursed. On April 25,,1977, Ms. Rosemary
Vitosh,.Director of Finance, and I'met with representatives of
'the Rock Island Railroad wherein we discussed the amount claimed as
outstanding accounts.' During the course of the discussions,, several
items:'clairted by the Rock Island were conceded by the representatives
to'have been for bridge materials which have since been returned; and
used elsewhere. Accordingly,; the revised figure is for $21,783.10
F
which reflects the cost of labor and servicesperformed in reliance
on the contract. Inview of the discussion above, I would find no
legal barrier to prevent us from paying the outstanding amount.
Should there be any further questions, please don't hesitate to
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contact me. Thank you.
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Tony Kushnir
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Attachment
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City of Iowa City
MEMAVMV&O ANDD
DATE: October 17, 1974
TO: Dick Plastino, Director of Public Works
FROM: George 'Bonnett, .Deputy Director/CityEngineer
RE: Lafayette Street Bridge
Per your request, the following is a synopsis of events related
to ,the proposed replacement of the Lafayette Street bridge, between.
Gilbert Street and Dubuque.
1. On December 15, 1970, the City Council authorized an Engineering
Agreement with Powers-Willis'and'Associates for the design of
a new concrete slab :bridge on Lafayette across Ralston Creek.
2. On February 18,'1971, an office memorandum was forwarded to
Ralph E. Speer, Jr.,,then Director of, Public Works, from Fred
Moore, City Engineer, indicating that in order'to`carry out
the Council directive to pave'Lafayette Street that the railroad
tracks would have to be relocated south and their grade adjusted'
accordingly. ' Fred, additionally ,commented 'that the Lafayette
Streetrailroad bridge over Ralston Creek would have to be
moved south:in order to make room for the, proposed new Lafayette
Street bridge. You will find 'a copy pylof the site plan for„this ,
bridgerattached to this memorandum` showing the old location
of the 'railroad tracks as well as the new proposed location.
Fred, pointed out to Ralph that there appeared to be a problem
with 'respect to "right-of-way for the:railroad in this area in
that the 1951 Municipal Code states in.part, ",the right—of—way
hereby, granted shall in no case exceed 20 feet in width: across
I and along said streets and alleys nor shall they ,exceed 116 feet
in width along Maiden Lane". Fred noted that the Code in!
question did not state where the'20 feet ,should be located
and suggested that the City Attorney might give us a ruling
as to 'where the required railroad right-of—way, might lie.' It
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a mY understandinB that the City 'Attorney gave averba
l opinion.,
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that by o tfie fact the railroad had been 'there several
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years they had aright to be where the tracks currently', exist.
A copy of the appropriate section of the 1950 Municipal Code
is'attached for your. convenience.
3. On March 29, 1971, the Iowa Natural Resources Council granted
a permit for the construction of the, Lafayette Street Bridge.
4. On July 16, 1971, a letter was sent from Ralph E.,Speer, then
Director of Public Works, to the railroad assuring them that
we would pay for the railroad bridge relocation."-
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ictober
17, 1974 2- .Lafayette Street Bridge
5.
On March 23, 1972, an agreement was forwarded to the Rock
Island Railroad indicating that we would pay for the relocation
of the track as well as the rebuilding of the bridge. I have?
attached a copy of that agreement which shows both a planned
view of the area in question as well as a profile. ,
6.
an July 12,'1972, the chief engineer of the railroad forwarded
a set of the plans for the new railroad trestle to the Iowa
Natural Resources Council for approval.
7.
On July 15, 1972, a letter was forwarded by the chief engineer,
of the'railroad',to the Iowa Natural. Resources Countil indicating
that the grade could not be raised an additional one foot and
pointed out that the railroad had increased the cross sectional
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area for flow by 580 square feet and increased the length of
the.bridge from'56 feet to 99 feet.
8.
on September 22: 1972, the Iowa Natural Resources Council issued
a permit to the '.railroad approving of construction of the railroad I.
trestle:
9.
It is my understanding that during the Fall of 1972 the City
Manager, Ray S. Wells, directed the Department of Public Works
to discontinue any additional work on the, Lafayette Street ,
Bridge in that he did not feel the bridge was required.
,n 10.
A bill has been received from the Rock Island Railroad in the
amount :of $5,424.23 which',would-,pay for the materials allegedly
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currently'stockpiled for the constructiontof their trestle
adjacent to tha proposed Lafayette Street',Bridge. This bill
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is dated 'April 4, 1973.' This bill' has not' :been forwarded for
payment in that a definitive decision was'not made as to the
Lafayette Street Bridge Project. i
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'Additionally, approximately $20,000 in other bills have been
recieved from the Rock Island Railroad related to.the revised
grade work adjacent to,the 'Gilbert Street facility. These
bills have not been approved in that a'decision has not yet
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f e' plans for the Lafayette
o th
been made as to the dispositionp
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Street Bridge.
12.
,The Rock Island Railroad has made repeated attempts to verify
the status of the Lafayette Street Bridge and has requested'
that we either: pay their bills or`inform ;them that the Lafayette
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Street Bridge. is no longer a viable construction project so that
they may remove the materials for other projects.
I trust
that the above information will be helpful to you in conversations
with the
City, Manager relating._to this project and if you have any questions;
concerning my knowledge of the events please don't hesitate to contactl,me.
"Imm,
WA..." X.,100
Cllicapa, Hock Island and Pacific Railraad Company
LA SALLE STREET STATION I CHICAGO, ILUNOIS GCSOG
ENGINEERING DEPARTMENT.
October 8, 1971
File 102053-4
..CO 202367PLEASE SHOW OUR nLE
NUMBER AND. DATE IN REPLY
Mr. Ralph E. Speer, Jr. P.E.
Director of Public Works
Civic Center
iIowa City, Iowa 52140.
Dear Mr. Speer:
Reference is made to your letter of July 16, 1971 covering.the relocation
of our tracks in Lafayette Street and the construction of a new railroad_ bridge
over Ralston Creek in Iowa`, City.
Attached is an estimate of cost for the track work and grade raise in the
amount of ,$27,205.00 and an estimate for the new bridge in, the amount of $20,142,23.
Ae track ,work estimate is based on the City presently owning or obtaining, the
additional right-of-way required in Block 29 -shown on the attached print. The
estimate for the bridge is based, on a timber pile trestle 100 -foot long. We assume
it '' that the Iowa Resources Council ,will approve this type of structure. We have also:
,i assumed that the power poles shown on the ;print will.be relocated by others..
'i Because of other projects now underway, Rock Island forcea and equipment
will not be available for the Lafayette Street work until January of next year.
Work on the bridge can begin thenand the track work performed as soon as the
weather permits; most likely in mid-March.
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It is my understanding that the:Lafayette Street segment of the Maiden Lane
project is covered by Section III B 3 of the agreement between the City of Iowa !
rY-malls and Rock Island dated July 2,.1971; Because the scope of the Lafayette
Street segment as outlined.herein,is not consistent_ with the ldescription of work '
in ,Section III B 3,I'would appreciate it if you would acknowledge, by signing a
copy of this letter'and.returaing At to me, that the.work.described herein is
covered bthat Section and the Rock Y" Island is,.to.be:.reiibursed for the cost of
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the work under Section XII,of said agreement.
` I regret any inconvenience to the•City,because,of the Rock Island's work
(Continued on.page :2).
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Mr. Ralph E. Speer, Jr.
October 8, 1971
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schedule, but I assure you
that.it
is the best that can.be offered under the
circumstances.
..Verytruly yours,
C.`:E..Weller
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Chief Engineer'
Atts.
APPROVED:
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Direct r of Publi Worka
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CC Mr M. R.;Ewing
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MINUTES OF A REGULAR COUNCIL MEETING OF JUNE 15, 1971
IF
The City Manager requested authorization to sign a contract with
Barton to update the parking study, cost not to exceed $5,000.
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It was moved by Brandt and seconded by Connell that the request be
authorized, Butherus voting 'no', others voting 'aye'. Motion carried,
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The City Attorney reported on the 'agreement with the CRI & P Rail-
:road concerning' the underpass on^Maiden`Lane and the Lafayette Bridge
and requested authorization farexecution of the contract by the Mayor.
It was moved by Connell and seconded by Brandt to approve the request.
Upon roll call Brandt, Butherus, Connell, Hickerson and White voted 'aye'.'
Motion carried.
The City Attorney discussed the Ordinance setting up the Legal
Department for the City, and requested further discussion at an informal
meeting. 'The Council scheduled the discussion for Monday June 21st.
It was movedjby Connell andiseconded by Butherus that the suggestions
from the Planning; and Zoning Commission with respect to rezoning the
properties adjoining Conway Addn:, Lot 11 be specifically referred to
Planning and Zoning for recommendation. Motion carried.
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d b Connell and' econd d b Brandt to adjourn to
It was move C 1 s e B
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executive session on Monday, June 21, at"4PM in the Conference Room;
for the purpose of.discussion acquisition ofparcels 84/10 and 83/4 for
the R-14Urban Renewal' project. Upon roll, call Brandt, Butherus,
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Connell,' Hickerson ''and White voted 'aye'. Motion carried.
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.MINUTES OF 'AN ADJOURNED COUNCIL MEETING OF JUNE 21,.1971
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The City Council of Iowa City, Iowa, met in adjourned session on
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the 21st day of June, 1971, at 4:00 P.M„ CDT, in the Conference Room
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of the Civic Center,
Members present: Brandt, Butherus, Connell, Hickerson, White.
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Absent: None, Mayor Hickerson presiding,
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It was moved by Connell and seconded by Butherus that the Civil
Service certification of''eligibility of Edward Schultz and Ralph Cox,,',
as Patrolmen in the Iowa City Police Department be':received and 'approved.
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Motion carried.
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Urban Renewal Coordinator Jack Klaus explained the adjustments to
appraisals for parcels 64/6 & 7. It was moved by Brandt and seconded, by
White to 'adopt the Resolution Establishing',Fair Market Value for Acquisition
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of Urban Renewal Prooerty. R1 Proiect. 64/6. 6G/7. n'1/A s RVin .it'
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7. Development of, Information and Referral reporting format and
distribution to cooperating agencies.
8. Letters sent to individuals or organizations for needs assessment.
9. Conducted 12 sub -committee meetings and participated in 11 meet-
ings with agencies concerning ,the project.
10. Attended workshop on classification and 'definition of human
service programs.
11. Began to schedule sub -committee meetings with agencies concerning
needs assessment.
Problems.-
1.
roblems:1. It has Ibeen difficult to maintain the balance between agency pro
fess.ionals and lay people on the sub -committees. This Lias resulted
in problems with service definitions and classifications'.'
2. Many multi -county agencies are not able togive client statistics
for Johnson County only:.,
3. Budget information, by program, has been difficult to obtain. It
may not be possible to;get-actual expenditures by program as a
result.
' 4.' It has been very difficult to structure the work of he Family and
Individual Life Services Committee, consequently we are :not antici-
pating their report to be completed during the first year of the study
5. i Many of the needs assessment methods which we would like 'to use
cannot lie -conducted in; time to',be'used during 'the first ;year of
the study. (Random sample surveys of school children and parents'
and senior citizens,;for,example.)
Projected Activities for June
1. Correction sheets for Johnson 'County ,Services Index sent out.
. 2. Questionnaires for needs assessment developed and distributed.
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3. Social indicators analyzed and summarized.
'i 4. Each sub -committee meet with at least two agencies. concerning
r needs assessment:
5. Follow-up on church, school, and agency questionnaires completed
and all responses summarized.
6. Method for handling data across program lines developed.
;WORK PLAN
6/1/77 - 2/28/79
June 1, 1977
Send out correction sheets for J.0 Services Index.
Development'of Information and 'Referral data collection
procedure for United Way, Library, Heritage Agency on
Aging
June 15
Questionnairesfor subcommittees developed and distributed
(Suggested:Churches'; Attorneys, Legal Aid; Private
Psychologists, Psychiatrists, Social Workers; Schools,;
Parents, Youth, Agencies in Juvenile Justice Area,
Foster Parents; Judges, Prisoners, Parole Officers;:
Law Enforcement Personnel; Institutions, Other Client Groups).
June 30
Social indicators analyzed and summarized.
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July 7
All questionnaires returned and summarized (including
agency service inventory)
July 15
All previous and current studies summarized
July 22
Subcommittee meetings ,with agenciesandorganizations
around needs assessment and service categories completed.
' July 29
Deyelop outline with subcommittee for service profiles.
_August'15
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Citizen Survey, for balance of`Johnson County completed.
August 26
Staff work on serviceprofiles completed.
"!.-Aug 29-Se'pt. 2
:Subcommittees meet to review information.
Sept: 6-16
Meetings, with agencies and organizations to discus's
profiles;; placement_ of agency programs within categories,
and ''definition lof services.
,'September 21
Full Committee meeting to discuss draft of profiles.
ii.October 11 .°i
Revision of profiles completed.
Oct. 11-14
Subcommittees ;develop recommendations
'October 20
Steering Committee reviews recommendations.
,'October 27
Full Committee, reviews recommendations.
November 1-7
i Draft of recommendations made available to agencies, ,
organizations, and funding bodies for comment. Public
meeting ',held.
November 9
Full Committee meets to discuss agency comments and approve
final plan.
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November 16
Regional, Planning Commission meets to approve report.
November 23
Report sent to funding bodies.
December 12
Full Committee meets to evaluate first year's progress
and develop preliminary plans in year two. New pages for
Johnson County Human Services Index sent out.
NOTE: Second year work plan will be contingent upon
results of first year's work. Revised work'
plans ',will 'be prepared in December, 1977 and
June, 1978:
Jan. 1978
Determine which new service areas to study in year II.
Determine which special problem areas identifiedduring'
year I;need additional study.`', Discussion on recommenda-
tions for future human service planning. Present results
of year''I to Title `XX'regional planning body,HACAP,
District Crime Commission, and other multicounty 'social
service; agencies. ,Examine reaction°'from:funding, bodies
and Regional Planning Commission to'year I' recommendations.
February
Design instruments to be used in resource identification
and needs assessment.' Development of work 'plan '_for year
II. Continue work on Family and Individual Life 'Services:
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March
Administer resource identification instruments for new
service 'areas. Begin to do follow-up. ,Determine, social
indicators and studies' to use as background,
April
Summarize results of service -inventory and previously
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'conducted studies. Analyze and interpret social indicators.
May -June
Administer needs assessment instruments and begin meetings
withagenciesaround needs and relationships among agencies.
Send out correction:sheets for J.C. Services Index.
' July'
Development of outline for profiles: Begin' developing
profile. Complete work on Family and Individual' Life
component.
Auguste
Complete profiles. Begin developing plan for continued
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human service'planning.
September I
Review profileswith subcommittees and agencies and
organizations.'
October
Consolidate profiles into unified package with 'steering
committee and'full committee:'
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(3)
November
Review results,
and recommendations with agencies
and
organizations.
Seeklapproval and plan with
Regional
Planning Commission.:,
December
Consolidate year's
I'!and II results and recommendations.
Present '_to>funding
bodies.
Jan'. -Feb.
Implement plans
for on-going human service
planning.
'i 1979
Staff Allocationito Human Services
Study
JCRPC
Executive Director
10%
JCRPC
Secretary
50%
H.S. Planner
100
H.S. Planning Associate'
*(CETA Position)
100%
HrS. Planning Associate''
(Through August)
150%
U. os I. Research
**(U.bf I. Funding)
50%
Practicum Students
(Unpaid)
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!(1-2) Dept. of Social.
Work 4/5 .Mime - 6,months
(1) Dept. of Urban &
Regional
Planning - 1/12 time =
10 weeks
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*ET gh 9-30-77
C A funds a rou
approved th
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**`July 1`�- May 15
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RECEIVEDOY 2 7 1977"
COMa"!EE TO R$PL,6CE THE F-86 JET WITH A SUITABLE MEMOVAL
MINUTES OF MEETING
May 24, 1977
Mee ing was held at 8:00 p.m. -in the ground school rocp
at the airport terminal building..
Pete Peterson, new chairman of the Airport Commission, and
Jack Perkins', retiring chairman of the Airport Commission wpre
>;. named'co-ehairmen''of this committee.
Peterson stated that the old F-86 was not repairable and
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ked':for;-comment son what psnbersconsidered an appropriate
'replacement.
Ray'Westfall, Legion Post i17, suggested a stone or marble
monument. i'The: _desirability of a replacement memori4l in the same
sp ot, and 'as soon as possible was: mentioned because of a t9pdency
for: enthusiasm to wane with timer:a memorial to the MIA's WAS
encouraged.
Lonis;'Cox, VFW.Post 13949, stated that he felt the memorial
should be to those who gave 'their lives in Korean and S. Vietnam
conflicts sigAp.that,is how the F-86-wap'originally dedicated;
` he felt tfiat'iieauty :was in the eyeof tlse beholder, and .that a
plena was as'beautiful as many of the drt objects downtown; he
t believed•that•a plane is relatively easy to maintain.
Bob.Natkins, Legion Post 1721, stated that his ;oat at their,
last malting for replacement of the F-86 with another plane.
MarkiSutton, Legion Poet.117, Ioffered personal comments
about 'thtiscattefed Memorial Day.'services in Iowa City.in
rs - Su ested:that 'ossibl !'one central, memorial for.
recent ea _
Y 44. P y
all! branches ,of th'e"'service for, servicemen of: all 'wars` might be
nore`,significant,.and'that"he envisioned a•pentagon with plaquos
for the 9: branches. of service, surrounded by living',plants. A
>'College Hi11'?ark_'site was, mentioned as,possibly being more
t desirable that the airport.:'
Peterson stated that the airport site is not a ;redrawn
conclusion, and that the reason the airport' commission is actively
tin,involved is becaus exit is willing to have airport property used
for -such a purposo again if'�his.is desirable.
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Lee .Brandrup,;representing the young veterans at the U of I,
favored,,a,living,memorial`with all branches o! service represented,
> „ and urged that on, appropriatslmemorial be daoided upon, and that
the •locstion then 1?i solectad: Tf3e Hoover gravesits at West
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Branch was cited as a living memorial which was very -impressive
and well-done.
Bill Potter, Legion Representative, MIA's, questioned the
leeway we might have as to location. Dean Labaster, Legion Post
'r 817, stated he thought almost any location on city property could
be arranged-if the memorial was in good taste and had wide backing.
Flo Beth.Ehninger, Project Green, mentioned that the neighbors
` might resist-College.Hill`Park and that any location should have
!' parking spaces nearby for Memorial Day Services. A flagpole as
part of the memorial was discussed. use of such a'site for
y Campfire Girl ceremonies., etc. waR mentioned.
i Sutton•spoke further in favor of College Park.
r Dick Fedderson Chairman of:committee that, established the
Robert C. Kadghin Memorial, questioned what we were really trying
to do, and mentioned that'although'he favored'an aircraft over a
r' jeep or•cannon,that is different memorial might?better represent
.,. all branches of service. He stressed that dedication to the MIA's
KIA's and WIA's is,appropriate, but that the full extent of the
suffering by:MIA families cannot be stressed�enough'.and possibly
3' the msmorial.shauld`Ibe dedicated tp the MIA's. IFedderson showed
' pictures of some memorials at Vicksburg and Andersonville and
stated that the Superintendent,at the Vicksburg memorial whom he
f knew .would be helpful. He :suggested that)our Medal of Honor
veteran in Iowa City (Heppel).should have,a big part in the
dedication; and that the opportunity for, g an outstanding
creating
memorial'in;lowa`City,,with Art Department and Project Green help
( on hand and•'available .waa unique
i` Potter stated that he felt all branches of 'service should be
< memorializedand that he liked the College'.Park location.
Westfall agreed
LaMaster suggested that we decide what type,of memorial we
want and then designate acommittee to proceed.
p7pC John Hartnett,''Legion Poat 81976, NorthLiberty, stated that
he felt"that-removal of the F-86 amounted to desecration of a
grave, and that he felt the plane.ahould be replaced.
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s11.
obtaini,a plane would probably cost $3,000, plus 'erection expenses.
ar . 'Fedderson' felt:•. that• .the dollars for; a 'memorial would be
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available_• from Project Green and 'other sourceepbut that more
cooperation from', the publio would be forthcoming for an
r. appropriate memorial than for a plane or tank type ,memorial.
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LaMaster stated that his first
aFt86n and that then remover
K the party', responsible for removing the
should replace, but that legal rami
and the problem of
obtaining a suitable replacement made this avenue impractical.
1� He felt that all positive aspects of reestablishing a memorial
would be lost, if we stop to argue over who was, responsible for
_what was done.
onger available. Regardless of
Potter stated P -861e are no l
the type obtained, there will be substantial cost. Said he is
leaning more to the other type of memorial.
Fedderson felt that by sticking to our stated objective of
establishing,
a suitable memorial, and establishing priorities, we
�TMtS,•; dap get; the, dollars required. Suggested a' cotmnittee to decide
P, what this memorial will be. He believes that if the memorial
s�.. inclu'dea all _branches and'.all wars, participation by p
be greater.
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LaMaster moved that the memorial h0'fpr all branches of
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service and for all:wara. Seconded by Wat{ins. Approved
unanimously,
to .ori inate',.2 or 3 suggestions
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Peterson appointed a commit
for al memorial for consideration by the entire group at our
next:tneeting. Committee to consist of Hartnett,?Neppel, Sutton,
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Fedderson, Ehninger, and Hrandrup.
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Hartnett moved that Peterson check with the city !about
^. IColle a Hill Park location, Watkins seconded.
p` availof 4
tK Approved•unanimously.
or
Fedderson suggested that those present ask other veterans f
f ideas; Potter -stated that, 'heIs been 'entrusted to'makesdecieions
for his, group -An
the
recommendations and action by
the people alrea8y`appointed to the committee will be. the most
',expeditious.way to;proceed.
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HYandrip hoped ae could get community support for the College
lark location:
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The next meeting of the entire committee will take place on
June; 7th at 8:00 p. m. at the airport.
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In the meantime the: memorial subcommittee will meet to
1;ideas and present recommendations.
! Meeting adjourned at 9100 p.m. on` motion by Potter, which
was seconded by Watkins. ;Unanimously approved.
Caroline Embree, Secretary
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Report. lhiv ;r.sureLj. pr,qurrr ;L)11:1 tui Its orn:n iwl r i rl l''r r:•r' ! thr; rl n'.
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"sarVI rrs Ideann
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'total Vtndu:r of Sune)s '218
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ilonl n Ihra,, 169..en?[111]di.In :I a=; Ild r
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DIP i � r i
Tn�FP� f -IF
DE
i Vi
*TRAFFICWAYS 0
INTRODUCTION. This report is part of a series being 2. Minimization of interference of land use ingress/egress
prepared to assist Iowa City in the development of a city upon arterial circulation.
plan. Trafficways are an essential element in the
development of a city, and many other elements of a city Minimization of the adverse impacts of trafficway
d
are dependent wholly or in part on an efficient trafficway development and operation upon neighborhoods and
system. This report summarizes basic trafficway ecosystems.
principles, evaluates the Iowa City system and presents
4. Minimization of transportation energy consumption
possible trafficway systems to aid in the plan development through trafficway design which provides alternative
process. energy-efficient modes of travel within the system.
BACKGROUND. Trafficways are an integral part of a 5. Maximization of the role of trafficways providing
multimodal transportation system. Just as the primary .identity, order and definition to the organization of the.
goal for a multimodal transportation system is to provide city.
for the safe, orderly and efficient movement of people and
goods, so too is it the goal for the trafficways system. In a As all of these roles of the trafficway system are fulfilled,
medium-sized city such as Iowa City, the trafficwaythe system can function with equity, efficiency and
system is of primary importance because it forms a ! environmental quality.
network on which all other forms of transportation must
depend. Besides vehicular circulation, the trafficway
system also serves as the primary system for transit, EXISTING SITUATION. The existing traff icway
bicycle, pedestrian and truck movement. Additionally, the system is organized around a grid pattern in the central
trafficways serve as access to air and rail transportation.
area arterial streets radiating from this central area..
Toward the periphery of the city, curvilinear local streets
Other criteria which should apply to trafficway systems predominate between arterial streets. The trafficway
include: system provides high levels of access to the central
1. Provision of appropriate levels of access to different business district and the University, but it does not provide
a similar level of access for cross-town traffic.
and uses.
I
c
1.
v
Y
4
I FP 1
\ `p
-1 \I
TRAFFIC PROBLEMS —
�EXISTING j �c Tv
PROJECTED: SEVERE I __.-� tows 1977
r
�.m,�,�.
`AfNMN PROJECTED:' MODERATE —� r
As in the
shown map on the precedinggage, problems
Other problems eent in the trafficway system are
arising from the trafficway system include:
unprotected intersections in residential areas (which could
be corrected by improved intersection design), congestion
1. Congestion at the river crossing where heavy east -west
at major intersections (which could be improved by better
flows intersect heavy north -south flows. (Some relief of
signalization and intersection widening), pedestrian/
this problem could come from a bridge crossing which
vehicle/bicycle conflicts (which could be improved by
would not intersect at Riverside Drive.)
selected site design solutions), and on -street parking
(which could be improved by increased utilization of low
2. Inadequate cross-town arterial system, which results in
traffic volume side streets).
poor traffic operation on arterial streets and in cross-town
traffic filtering through residential neighborhoods on local
streets. (Correction of this problem could come from
PROJECTED CONDITIONS. It has been
I facility improvement or construction of new facilities,
more control of land uses abutting arterial streets and use
projected by the Area Transportation Study (Johnson
of traffic diverters to localize traffic in residential
County Regional Planning Commission, 1977) that several
neighborhoods.)
of the existing arterial streets will either require substantial
improvement or need to be augmented by new arterials to
3. °Under -utilization of the transit system, partly due to a
properly function by 2000. These projections were
street system primarily designed for private vehicle use.
developed from modeling techniques which analyzed the
(Improvement of this situation can come from
expected number of trips between various origins and
concentrating intense land uses along transit routes,
destinations within the Iowa City area. As determined by
improved subdivision design and reinforcement of the
the Area Transportation Study, trips in the Iowa City area
city's basic radial layout.)
are predominately to and from the central area with
additional concentrations of trips to community shopping
4.Environmental disruption of residential areas due to
and industrial areas. (Also see the "Traffic Problems" map
many arterial streets which have to serve the incompatible
on the preceding page.)
functions of arterial circulation and property access.
(Improvement of this situation can come from the s
Based upon the projections
for trip generation and
development of a truck routing system, subdivision design
attraction, the existing
problems, general financial
which does not allow single-family access directly to
considerations and site planning principles,
arterial streets and increased use of landscaped buffers to
recommendations for the development of a trafficway plan
reduce air and noise pollution.)
I I
and a land use plan are presented in this report.
POSSIBLE: DESIGN SOLUTIONS
_ The development of bus stop lanes with bus shelters and
accompanying benches, mail boxes and telephones
71
increases the awareness of, how the transit system works,
*�
provides weather protectionand security for transit riders
' and reduces conflicts between buses and cars, and cars
and people.
I
CM
B ttE S HCLTEAI
".
® r •�
1zrx WITH MAIL
r' 'COX AND
'�
1.-L.Y—I
LE p1oA1E
�
y
y�•yI,
JII
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IN I
®
®
Through traffic on grid -pattern streets in residential areas
can be discouraged through a number of means. Traffic
control devices may be effective in some cases. However,
as shown above, diverters are very effective In eliminating
through traffic. When diverters are used In an organized
—
pattern,,they can provide a separated pedestrian system
within the traffic grid.
i
r. r
�
I
On side streets in high-density residentisi areas, parking problems can be significantly improved by the development of
on -street parking areas, or by other alternatives such as developing peripheral parking areas, reducing the need
attractive
for autos in high-density areas through planning for pedestrian
oriented lifestyles, and regulating parking on streets by city
ordinance:
®® ®®J
I Uf ilk Uhf �uJ
' ® EXISTING S -MEET
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TRAFFIMAY
POSSIBILITIES
INTRODUCTION. A map of trafficway possibilities
of traffic, should be well buffered with landscaping and
and analyses of three principal alternatives are contained in
ample rights-of-way.
the fold -out pages following the design standards. These
trafficway possibilities represent a street system designed
SECONDARY ARTERIAL streets serve a dual
to serve the needs of Iowa City in 2000 (60,000 people) and
is that
function of circulation and access, with circulation taking
hopefully to 2030 (70,000 people) It not expected
this plan will be implemented by 2000, but it represents
precedence. Secondary arterial streets should be
developed to carry large volumes of traffic (5,000-15,000
4
some projects which will likely be built and corridors that
should be protected. These possibilities were developed
vehicles/day) in a grid and radial pattern which
supplements and is continuous with the primary arterial
to assist in the development of a land use plan and do not
system. Secondary arterial streets should offer direct
I
represent a plan, but an illustration of the concepts
included in this report. Land use and trafficway planning
property access only to large industrial, commerical,
institutional, and multifamily residential sites and should
are interdependent, and adjustments of this system will be
be buffered from residential uses by ample landscaped
'
necessary as a City Plan isformulated. IThese possibilities
transitions. I
are based on the assumption that new urban intensity
development will take place largely within the existing city
i
limits plus the Ralston Creek and Willow Creek watersheds
COLLECTOR streets serve the dual function of
and the area immediately south of the city limits over 200
circulation and access, with access taking precedence.
meters (650 feet) above sea level.
Collector streets should be designed to carry moderate ',
volumes of traffic (1,000-5,000 vehicles/day) relatively
short distances from origins or destinations to arterial -
I :
FUNCTIONAL CLASSIFICATION. Functionally,
F N CTI need L fulfill two roles: circulation and access
streets and the return. The collector street system should
be discontinuous, with street lengths no longer then one
to'propertyi The trafficway possibilities establish a
kilometer (0.6 mile) as a general rule. Collector streets;
should provide access to all types of land use, but with
functional classification of primary arterial, secondary
arterial, collector and local streets, with each classification
single-family residential access preferably onto local
representing a shift in relative importance of the circulation
streets.
and access functions of each type of street.
LOCAL streets serve the function of circulation for
PRIMARY ARTERIAL streets' principal function is
access to property, Local streets should be designed to
carry only small volumes of traffic (up to 1,000 vehicles/
to provide for vehicular circulation, with access to property
day) and discourage both high-speed and high-volume
through secondary arterial and collector streets. Primary
arterial streets should be designed to carry large volumes
use. The local street network should be relatively
continuous; but individual streets should not extend much
of traffic 115,000 or more vehicles/day) and should forma
beyond one kilometer 10.6 mile) in length nor have direct
l
continuous system of a ring and radial streets serving the
access to primary arterial streets; access to secondary
l
core of the city:', Primary arterial streets servo as the
arterial streets should be minimized. Local streets should
principal truck routing system of the community and,
provide access to all land uses except the most intense
'':
F
because of the adverse effects of trucks and large volumes
uses such as industrial, institutional and commercial.
r. r
�
I
TRAFFAAY DESIGN SYUDARDS
The following minimum street design standards are recommended for the development of the Iowa City trafficway system.
The standards establish a hierarchy for the orderly development of streets designed to serve particular functions. These
minimum street design standards will require modification to meet particular circulation requirements at intersections.
However, variations from these minimum standards should not be made unless a severe physical constraint is present.
(Note: Minimum standards are expressed in both feet and meters.)
PRIMARY ARTERIAL. Primary arterial streets are
to be developed as boulevards or expressways, with a
median separating opposing flows of traffic. At
intersections medians will be used to provide left turn
storage lanes.' No perking is permitted on primary arterials
and maximum acceptable grade is 8%.
PN
1
IkI I'I1 rr
7.5. �
r
SECONDARY ARTERIAL. Secondary arterial
streets may be developed either as three- or four -lane
facilities. At intersections with other arterial streets it may
be desirable to widen secondary arterials to primary arterial
standards to accommodate heavy turning movements. No
parking is permitted and maximum acceptable grade is 8%.
0.3 r.i�'f3.4m
COLLECTOR. Collector streets may be developed as
two-lane streets either with or without parking. At
intersections with arterial streets, elimination of parking
and the provision of a left -turn lane Is recommended.
Collector streets should not be longer than one kilometer
(0.6 mile) to discourage through traffic and maximum
grades should not exceed 10%.'
l
0.3
LOCAL, PRIMARY. This type of local street is
intended to serve residential areas which have a density
greater than ten dwelling units per hectare 00 DU/H or 4
DU/AI. This type of local street should not be longer than
one kilometer (0.6 mile) and should not provide a direct
route between streets of a higher classification. Parking
may be permitted on both sides of the street and y
maximum acceptable grade is 12%. VQ
0 0
!R
LOCAL, SECONDARY. This type of local street
may be developed if either of these conditions are met:
I (1) if it serves residential uses with a maximum density of
ten dwelling units per hectare (10 DU/H or 4 DU/A);
or (2) if it serves no more than twenty-five single-family
residences and they have adequate off-street parking (four
spaces per dwelling unit). This type of local street should
not be longer than two hundred meters (656feet),,and
' should not have on -street parking or a grade in excess of
12%.
I
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I-� LOCAL, RURAL. This type of local street may be
developed in areas with single-family residential densities
I less than or equal to one dwelling unit per hectare (1 DU/H
�.� or 0.4 DU/A1. This type of street is ideally suited to areas
of steep topography; therefore, maximum grades of
�•i .
20% are acceptable provided transitions do not exceed
111 12%. The length of this type of local street should not
it exceed one kilometer (0.6 mile). )
,I
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ANALYSIS
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�� ., ■ .' ■� C , \ VQ.uurtnv of r1fd NtwfO
■■■RT 'ommittos: Richard
^71■, " ..-� 1 rf ekobsen, Mary
1 _iter.
Q\\remnis R. Senior
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`n Iiler, senior Planner
nt pJoanne SomskY,
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LOCAL, PRIfl.k
intended to serve?'
� greater than ten '�
DU/AThist(0.(
one kilometer (0.1�,.
j route between stt
may be permitted'
maximum accept. °
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ENVIRRNME' NTAL AND ENERGY
CONSIDERATIONS
Design of trafficways to serve many modes of
transportation can result in substantial energy savings. 4� Gpop E-1-Te re—
Oak Ridge National Laboratories has determined that
buses are twice as energy-efficient as cars, that walking is itiQ W
twelve times as energy-efficient as driving a car and that
j
bicycling is one third more efficient than walking. Also,
bicycling and walking help to conserve scarce fossil fuels.
PI573WCE
'repXJFJ..Ep
PER UNIT t
�D Uet UI PI!. A CAtG OF ENE12641 IIIIII
IMOD., Rt�rN6 P t3 u5 II(h TND¢TH
. wAr_ K r NG Energy efficiency can be built-in to serve adjoining land
C7 r_300 0 mot—]013 uses and, aid conservation. The American Institute of
Architects recommends that for a climate such as Iowa
City's most local streets extend east and west, or
preferably twelve degrees east-northeast of oast-west.
2XeIN& A BtKF Trafficways built in this manner will minimize energy
MCD o C7 rJ M O ❑ o OOb consumption of structures located parallel to them by
reducing unwanted winter winds and channeling summer
a breezes.
Separation of arterial streets from residential areas by
distance, barriers and landscaping is recommended by the
U.Si Department of the Interior. Trees and shrubs located
close to streets reduce noise and air pollution. Residential
structures should be located no closer than thirty meters]
(98.4 feet) to arterial streets, unless substantial buffer I I I I I t�CN
plantings ten meters (32.8 feet) in width or other sound
barriers are located as close to the street as possible. I' II I
GUNAGINBP[pPL[Ay HnNApuroyin. aep,ptla[e0 rhrnupb Die [auOny of F,Nd New4'ePn
r SvnOrcem.
ov
A. Prepared for the Comprehensive Plan Coordinating Committee: Richard
Blum (Chairman), Part Cain, Carol doProsse, Jane Jakobsen, Mary
Neuhauser, Rob. art Ogesen, David Parrot, Juanita Vetter.
By the Department of Community Development, Dennis R. Kraft,
�' i' I, \ • . O 0.., • . Director, City of Iowa City, Iowa 52240; Rick Goshwiler, Senior Planner
y " IProlect Planner); Margaret Garrott, Assistant Planner; Jeanne Somsky,
Editor/Graphics Technician; Janell Palmer, Clark/Typist; Debbe
Simpkins; Clark/Typist.
/ Printed on 100% recycled paper. April, 1977,
ii
Wity of Iowa cit
WHY of Iowa Cit
ml\ u"Am nn
DATE: June 1, 1977
TO: Dick Plastino, Director of Public Works
FROM: Jim Brachtel, Traffic Engineer
RE: Yewell Street Postcard Survey
The City has received a request to remove parking from one side of Yewell
Street between Deforest Avenue and the north end of Yewell Street. A
Postcard survey was conducted to determine the opinions of abutting, residents
who would be directly, affected by the prohibition. The results of this.
survey are listed below.
EAST SIDE WEST SIDE TOTAL
RESIDENTS' RESIDENTS
POSTCARDS SENT 26 20 46
FAVOR REMOVAL 9 9 18
OPPOSE REMOVAL 12 (1*) 7 (2*) 22
DID NOT RESPOND 4 2 6
PREFER EAST SIDE REMOVAL 11 3 (1*) 15
PREFER WEST SIDE REMOVAL 10 (1*) 10 (1*) 22
NO PREFERENCE 1 2 3
(* indicate-respondent_wassenti.ng)__.
Additionally, 11 space was provided for brief comments. Commentary included
"not enough traffic to be problem", "parking removal will increase vehicular
speed", '.'hig p " sufficient off-street
her speeds make unsafe conditions in
parking to accommodate all the vehicles owned: in the area.
Some residents indicated that some 1, of the homes had boarders or were rental
property -and 'this-land•use,change,from-single family -dwelling has -significantly -
increased the car population.
OBSERVATIONS
1) :The width of Yewell Street is 25' feet back -of -curb to back -of -curb.
2) "Three fire, hydrants are located:on the west side of Yewell Street none
on the east side:
3) 1;Localized congestion does: occur due to, parked vehicles.
4) _'Parking removal will present storage problems tosomeresidents.
5) 'The 1973 On -Street Parking Spaces Survey conducted by, the Public
Works Department estimated 36 parking spaces on the east side and 42
Parking spaces on the west 'side.'
i
�Ity of IowaCit
DATE: June 1, 1977
TO:Dick Plastino, Director of Public Works
FROM:Jim Brachtel, Traffic Enginee3:.B
RE:Dewey Street Postcard Survey
The City has received a request to prohibit parking on one side of Dewey
Street between Summit Street and the north end of Dewey. A postcard
survey was conducted 'tordetermine the opinions of the affected residents.
The results of this survey are shown below.`
EAST SIDE WEST SIDE TOTAL
RESIDENTS RESIDENTS
POSTCARDS SENT 1 6 7
FAVOR REMOVAL 0 2 2
i
OPPOSE REMOVAL 0 1 (l*) 2'
DID NOT RESPOND 1 2 3
r
FAVOR REMOVAL FROM THE EAST0 1 1
FAVOR REMOVAL FROM THE WEST - 0 1 1
NO OPINION.EXPRESSED 0 1 (1*), 2
(* Respondent is renting)
Thefollowing comments were also included: "restrict from Brown Street",
"could mean,parking several blocks from home"; and "creates problem for
backing out'.of drive".
OBSERVATIONS
'i
1)"'Street width.o£.Dewey_Street is 20 feet wide.
2) ,No fire hydrants, exist on this portion of Dewey Street.
3)' An estimated 12 parking, stalls exist on the east side and an estimated
7garkin stalls exist on the west side.
P _
COMMENTS
There is no clear consensus of opinion resulting from the postcard survey.
The facility serves only 'abutting property and it, appearsthrough traffic
is minimal: Parking restrictions could present storage problems for those
homes which have boarders or>are being used as rental properties.
RECOMMENDATIONS
Council deny the request for a parking prohibition.
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r• No.
CITY OF IGVA CITY, IOWA
EXCAVATIGN PERMIT
DATE:
NAME: ',' ANNUAL DEPOSIT CN FILE
r.. ADDRESS AM=1 OF SPECIAL DEPOSIT $
FARP66t AND LOCATIQY OF3VORK:
EXCAVATICN �
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Backfill Materials`
PA .i.
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TOTAL
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' ;Start Date
Finish Date
SKEICiI;OF JCB LAYOUT:
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�Conditions
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Director
"Permittee
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"Inspection
Date 2%3 Deposit Return
'fit
Initial
Comments:�
Final Inspection
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f'yl PERFOFMANCE DEPOSIT
SCHEDULE
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SPECIAL DEPOSIT
For first 100 Pt or less
$ 100 00
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For each additional 100 ft or less
1' 100.00
Minimus' deposit
100.00
ANNUAL DEPOSIT
`
For
$1000.00
all excavation
10" :f'
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..
ORDINANCEyNo.
)
�,
AN ORDINANCE REcuLATln�c '11113 OPINING Arra ZXcnvnTuvc or
k' PUBLIC PLACES: RLQUIRING"'A PUMIT AND PAITENT OF'A
PERFORMANCE DE1)CSIT: IAOSING MIRFNUMS FOR THE PRD
TECTION OF LIFE AND PROPIMIY IN OaNNECrIOV W'IMI F.XCAVA-
TION WORK, INCIMING TRAFFIC AND PEDESIMAN SAFEGUARDS:
HIMATING THE BACKFILLING AND RESURFACING OF EXCAVA
TIONS:AND PRESCRIBING PENALTIES FOR VIOLATICNS'OF 714ESE
PRDVISIONS.
SECTION 1. CITATION.
This Ordinance shall be knoav as the "Street Excavation Ordinance of the City',of Iowa
City. Iowa."
SECTION 2." DEFINITIONS: '
For the purposes of Ithis Ordinance, the following words shall have the meaning given
tl ` A "City" shall meanthe City of Iowa City.
,
.ti B "Director",'shall mean the City Manager of the City or his/her authorized repre-
>1 �11k• 1 ), SentatlVe { � '?�J,�,r •.. , I �'y , h, r, ! ��il
Y' .ity�ti 'h '�•'..,ti C i',;,.t/ �`�'�'>`,! `11 '•'r 7, ;1 i 7
C. "Excavation" shall -mean any. opening '.in the surface of a public place nude by any
w p �
means lbti
Tl. D. "Person"'shalLtnean. any person' firm partnership, association, corporation
,,
''.`,
municipal',department, ccrrpany or organization of any; kind.
y i E 'Public Place": shall mean any public street, way, place, alaey, sidewalk, park,
' square,: plaza, any; City -aimed right-of-way or any "other public property a ned or 'w
controlled by the City of Iowa City and dedicated to public use.
yAns F "Specifications"'sha l m an,,the latest edition of standard Specificat'i'ons for
Construction on Primary,. Farm to Market, Secondary, State Park, and Institutional
`!- Roads and Maintenance Work on the!Primary Road Systcm, lova State Highway Cotmus-
' sion, ' Ames'. -Iowa , !
y' G"'' "Substructure" shall mean any pipeui
, :condt, duct, tunnel, manhole, vault,
buried cable,.,or wire or any other. ,,similar structure located below the surface
of.)any public place:,
H "Utility"•shall mean any public utility regulated by the Iowa Commerce Commission,
pee'rsons holding a; franchisectn .frthe City, and other similar persons. l y
.c,
,
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�.
s'+ jISECPICN 3 EXCAVATION PERMIT
persons making ort filling any•excavation in any public place shall first obtain,a 'tl
;. permit}from the. Director ',except as provided in Section 19; Permits shall be obtained '?,
at least. the day prior to rnaking.an excavation:' No excavation, permits are"required,, ,
for substructure installation in anew subdivision prior to acceptance of the street
improveneits by theCity
,I
SECTION 4 APPLICATION'•
No excavation permit shall be issued unless a written application is submitted to the
Director on a form provided by the City. The application, when approved shall
at
constitute a permit
SECrICN 5. CERTIFICATE OF INSURANCE C
Beforefan excavation permit is issued, the applicant shall deposit with the City a
certificate of insurance; in an amount to be determined by the City Council by resp=,' il)y
lution'Tne certificate of insurance shall list 'the City of Iowa City, Iowa, and its til
r ' officers, employees and agents,' as additional named insured.
F"M
Utilities,."City, departments; and other governmental agencies, may be relieved of the
obligation of submitting such a certificate of insurance.
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SL'Cl'ICN 6. ` PERFORILA.NCE DEPOSITS
it:rt•cinr=ee',deposits are required for any excavation in it public place. Deposits
required under this section shall be a cash security,
A. Purpose of Deposits:
All special or annual deposits shall serve as security for the performance of
work necessary to put the public place in as good a condition as it was prior to
the excavation if the permittee fails to complete the work under the excavation
permit.
B. Special Deposits:
The application for an excavation permit shall be accernpanied by a deposit, made
in accordance with a rate schedule adopted by City Council resolution.
C. Annual Deposits:
In lieu of, individual special deposits, any person intending:, to make'excavations
in public; places shall maintain, with the City Treasurer, an annual deposit in
accordance with a'rate schedule adopted by City Council resolution. ,!
�., D .'Refund of Special os
Depits:
Upon Director approval of the work covered by the permit, two-thirds of the
special deposit: shall be pr tly ref
punded to the permittee, and the balance 1"
shall be.released to,the permittee one (1)'year ,later.
;,-..
E. Refund or Reduction of Annual'Deposits:
Upon request, two thirds of;"any annual deposit shall be refunded at the end of '
the one-year period for which the deposit is made. The balance of he annual `
deposit shall be released one year later. .-If no refund request is received, the
deposit shall be carried over'for use as the annual deposit the following year.
F. .Use of Deposits:
.r
Deposits shall be used to pay the cost of any work the City performs to restore
or; maintain the public places in,the event the'pernrittee fails to perform the
r
l be reduced b the amount _ .;
work. The acrount release
extended.
the permittee shal y
expended." Work -done by the City shall be at uniform fees based on labor, maternal,
Y" and overhead expense
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EtGions' from DePits.
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„
¢;Where excavations' are made by City'departments or persons or utilities operating Y
under..a franchise issued by the City or regulated by the Iowa Camrerce Carmission,
,aipermit,
`may be granted without making such deposit., In such cases,, the permittee t ;r
shall be liable for the actual cost of any work done by the City in; restoring, ;
rthe area. The City shall, in the future, require deposits from any; such permittee
if a bill rendered in accordance withthissection becomes delinquent.
';tra
SECTION 7!. TRAFFIC CQN'I'ROL
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s to and from private property, block emergency
lb permittee shall interrrupt,acres P _
vehicles, block access to firehydrants,' fire stations, 'fire escapes, water -valves,
underground vaults, valve housing structures, or any other vita]. equipment as designated `.
by .the Director. If.;a street closing is required, the applicant will request the
assistance and the approval of the Director. It shall,be the responsibility of the
permittee to notify and coordinate all excavations with the Police, Fire, and Transit
Departments. ?!:
11re,peimittee shall take appropriate measures to assure that L'raffic conditions as
near-normal as.possible shall be maintained at all times. '^}
klType,I','and Type II barricades, . as,defin
in Part VI of the Manual of Uniform Traffic
Control Devices, must be used ,whenever it is necessary to close a traffic Is or, a. ;
sidewalk. Barricades are to be's:UPP
'lied"by the permittee. If used at night, they
must be seflectorized, have barricade warning lights
r
and must he illuminated o
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19
.. 'i'I a @p. r ? ti. •. r)`r. i � rT �FJCa i .•!�
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l !- r ✓ rA�. ,� i rrir y �.�J�t,��r, A�+� is
{ �✓ A4 , i., Gi�• �I r; , .n 1.
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Y a� ` iAt.���.1. .•i��4 i!•'1'Sil ..l{ �1f.JtLA11f.1\L
As a general guide for all maintenance and construction signing, Part VI of the
Manualon Uniform Traffic Control Devices shall be used. 'Die permittee shall illustrate
on the excavation permit the warning and control devices proposed for use. At the',
request of the Director, such warning and control devices shall be increased, decreased
or modified.
Oil'flires or kerosene lanterns are not be allowed as means of illumination.
SECTION 8. PROI=ICN OF PAVED SURFACES FROM EXZUIPI>FfIL' DAMAGE
Backhoe equipment outriggers shall be fitted with rubber pads whenever outriggers are
placed on, any paved surface. Tracked vehicles are not permitted on paved surfaces
unless,' specific precautions are taken to protect the surface. The permittee will be
responsible for any damage to existing pavement caused by operation of such equipment
and, upon order of the Director, shall repair such surfaces damaged by excavation
equipment. Failure to do so will result in use of the performance deposit to repair
any damage.
SECTION 9. 'PRO=ION OF ADJOINING PROPERTY
:c
The permittee shall protect from injury any adjoining property by providing adequate
support and taking other necessary measures. ,The permittee shall, at his awn expense,
shoreup and protect all buildings, walls, fences or other property likely to be
,r
damaged during. the excavation work;.and.:shall,be'responsible for damage to public
or private property `or',highways, resulting from failure to properly protect and
carry -out excavation work. ;Failure to follow; the provisions of this section will
result,, in the use of the performance deposit to repair damage.
SEMON 10. RELOCATICN AND PROTECTION OF UTILITIES,�^
The permittee shall notify the owners oflall facilities in the excavation:area at
least one (1) day prior to excavating except as provided in Section 19. The cost of
nnving` facilities shall be paid,by the permittee.,:.
y
The permittee,shall support and protect all pipes, conduits, poles, wires or other
-apparatus
apparatus which may be affected by the excavation work:; The permittee shall deter-
existence of all underground facilities within the excavation area by
exposng'prior to machine digging and protect the substructures against damage.
SECTION 11. BACKFILLING OF E r-AVATIO:N'i DER OR WITHIN IVO FLET OF PAVED SURFACES "
The trenches for all substructures that lie under paved surfaces and traveled ways. or
'
within two (2)(feet of paved surfaces shall be backfilled' with excavated material to
required grade in layers not to'exceed 'six' inches (611), and each layer shall be
compacted to 90'm of modified proctor density., Granular backfill meeting City speci-
fications may also be placed by, any procedure which results in 9% compaction.r
SEMON 12. BACKFILLING OF UNPAVEDAREAS AND PARKWAYS
's
acavated soil'shl'be carefully deposited and satisfactorily tamped in uniform
al '
layers Inot greater than six inches (611) in thickness until the backfill 'reach e the
top of, the substructure. The remainder of the trench shall be backfilled in uniform
y
layers not exceeding' twenty-four inches (24") in thickness, and satisfactorily tamped
, k
to within one'footiof the surface. The backfilling operation shall continue with
soil until the backfill rem ins slightly above by the ground level. Excess material
shall be disposed of.
a
Granular backfill meeting ,City specifications may also be used; however, soil shall
:3
be used for the final foot of backfill.
I
SEMON 13. REPAIR OF SURFACE
The Director may specify the type of resurfacing required for any excavation, hav
ever in the absence of specific direction from the Director, the following spec-
ifications shall be used for resurfacing of an excavation:
+'-
A high tvoe asphalt streets.The pavement shall be neatly sawn one foot (1') :
`
back from each side of the excavation and removed to a,depth necessary to reach
undisturbed subbase or soil. A concrete patch equal to the thickness of the
existing pavement, but in no case less than six inches (611) thick, shall be
'Placed in the excavation and brought up. to a point two inches (211) below the
-final surface. the permittee will complete the excavation with two inches (2'!)
m
of asphalt. The concrete patch used in excavation work shall be an M9 mux and
. X
shall meet Section 9390 of the Specifications (see Section 2, Definitions) N ns'
, arlaa ', rc
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P`
B. Concrete streets. The pavement shall be neatly sawn and ranoved one foot (1')
t
back from each side of the excavation to a depth necessary to reach undisturbed
subbase soil. It' a construction or expansion joint is within five feet (5'),of
1.110 edge of the patch, the surface shall be removed back to this joint. A
concrete patch equal to the thickness of the existing pavement but in no case
less than six inches (611) thick shall be placed using a 1,14 mix in accordance
with Section 4240 of the Specifications.
C. :Brick streets. Excavations in brick streets shall be repaired using the
original brick or other brick suitable for traveled surface. A six inch '(6")
concrete base shall be poured using a 514 mix. Above this, a sand -cement cushion
one inch (1") thick shall be adjusted so that when the bricks are paved and
rolled the top surface of the bricks will be at the required finished grade.
The joints between the bricks shall be hand tight and shall be no greater than
one-fourth inch (J").A dry mixture of one part Portland cement and three parts
sand shall be be spread over the top of the patch until the joints are corgiletely
filled. The surface then shall 'be fogged lightly with water.
D Low type Streets When a street consists of a seal coat, dust seal. or other
thin, lav type surface, an asphalt_patch at least two inches (2") thickshall be
;
4,Placed.
The asphalt'shall be rolled with a rubber, tired vehicle until a cense,
a},f
tight surface is obtained
„
• 'other structures. Whenever an excava-
r,h�, •j
t ;
E .:: Sidewalks', driveways curbs andgutter,
tion cuts a sidevalk, driveway, curt and gutter or ottier structure, the excava-
tion
'rtion shall be backfilled,'as described in Section 11.!,A neat ;saw cut shall be
°1;,5` i"I
made!one>_foot (1')`back from each side of the excavation to undisturbed soil; .,
:on sidewalk, the pavement'shall be removed back to the nearest contras
�''.
;
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„'+however,
%tion or expansion joint.' All. broken or spalled concrete or structure material
`
shall' be; raroved and the surface shall be replaced using anM4 mix in accordance
;h • '^
with Section 4240 of the Specifications.
}:�: �.f 5, `,� ,• .. a .i :.
`Parkways. and other unsaved`areas. The face.of cultivated grass areas shall
,f�
x "
F.
,be seeded.. is the i, responsibility of the, permittee to establish a good stand
.It
of grass. The area shall.:be left free from, debris and clods: On steep erbank-
ments,or,upon request'of,the Director, sod or other erosion control techniques
shall be used for" restoration
.31
All cuts:are to be made to a depth of two inches (2) or deeper.
,G
Saw cuts.;'; saw
The reminder of the slab shall be broken off I belay that point in a vertical
I plane. Saw cuts' shall!. form a rectangle around the excavation.
methods to 'cutting 'of pavement will be required upon
H Boring orrother prevent
request'of the Director.
'
..,
SECTION14TIh1E OF OOSIPLETION
E`'
�. •..
All 'excavation work and backfill11 ing covered by, the pemit'shall.becompleted in a
n
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`manner as determined by,.the Director. Alter canpletion of the excavation and
x
;prompt
backfill work;!;restoration of the surface shall;be completed within fourteen (14)
x
days unless a'trmeextension is granted by the Director.''
SECTION 15 NOISE, DUST AND DEBRIS
,•,
Eachpettnrttee shall conduct excavation work in such manner as to avoid unnecessary
r
inconvenience and annoyance to the general public and occupants of neighboring
Gy`
property'. In the performance of the 'excavation work, the permittee shall take
appropriate measures to reduce noise; dust and unsightly debris. ` No work shall be
r•done
between the hours of 10:00 P.M. and 6:00 A.M., except with 1.110 express written
permission of the Director, or in case of an emergency.
r
'
SECTION 16. INSPECTICN
Random 'inspections may be made of procedures described in,thi Ordinance and the
permittee, shall correct his. procedure if so ordered by the Director. Failure to do
1q
so will result in use of the performance deposit to correct or complete wprk
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a,
SECTION 17. CLEAN-UP
As thesexcavati rk progresses, all public right -0 -ways and private properties
d"f
thorou 1 cleaned of all rubbish, excess earth rock and other debris ,t All
shall Y
;be
clean-up operations shallbe done at the expense of the permittee. If the permittee
fai]s;,to clean-up within twenty-four,,(24) hours ,after notice, the Director shall
authori2e the work done. Such work shall be paid for with the performmce deposit:
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`
SECTION 18, TRLNQ{ES IN PIPE LAYING
L.xcept by special perrnission'frcm the Director, no trench shall be excavated pure
than 300 feet in advance of pipe laying nor left unfilled metre than 100 feet ui:ere
pipe has been laid.
SECTION 19. E11MENCY EXCAVATION
Nothing in this Ordinance shall be construed to prevent excavations that may be
necessary for the immediate preservation of life or property. The, person naking
excavation shall apply to the Director for a permit on the first working day after
such work is ceamnced.
SECTION 20. PRESERVATION OF MONUMENTS
The permitt ee'shall not disturb any surface monuments or hubs found on the line of
excavation work unless approval is obtained frcrn the Director.'
SECTION 21. 'PENALITIES
Any person violating any of the provisions of this Ordinance, upon conviction, shall
be punished by a fine'of not less than five dollars ($5.00), nor more than one
t*'
hundred dollars ($100.00)
;
SECTION 22 PEPE=
Section 9 60.3'of the Afunicipal,Code and all other Ordinances or parts of Ordinances
in conflict with this'Ordinance;are hereby repealed.
:'..
sECTION 23. SAVINGS CLAUSE. "If any section, provision or part of the Ordinance shall'
;y
be; adjudged to be invalid or unconstitutional, such adjudication shall not affect- "
the. validity of the Ordinance as a whole or any section, provision',or part thereof
adjudged invalid or unconstitutional.
,r.sEcri
24. EFFECTIVE DATE.. This Ordinance shall be in effect after its final
}
approval and.publicat'ion as required bylaw.
Pansage,.
It was moved by t and seconded by
i
that the Ordinance be finally adopted, and upon roll call there were:
�
.h
i
r}AYFS.: NAYS. ABSENT:
Balmer
—
5; deProsse
a n,
Foster�
i, �.F • 1. , Neuhauser
?;
Perret
J
.'Selzer ;.
—_7,Vevera
1
Mayox
ATTEST:
li
City Clerk
First Consideration
"a
n,
Vote for passage:
"A
Second.Consideration
Vote for.passage:
N
ff
Date of
,tt
.publication
I t
)I�i.•,
Passed and approvedthis day of 1977.
I ,
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, : �., Ja. wa,..- .✓. • ...a .. .r..{ irr t'n 1. rl3p eb. : ,. ,1 u..La ':L:, fla _. .Il' .. ..S..11.,i LL�..i/ Jai+
e June 3, 1977
L. Seydel
Housing Coordinator
TRADITIONAL PUBLIC HOUSING
The Department of Housing and Urban Developnent has issued a Notification
of Housing Assistance. Availability to Public Housing Agencies. This
notice contains funding for a total of 110 units; 35 must be 3 or more
bedroom for large;fanilies and 75 one to three bedrooms for other families.
This''allocaticn'is for non metropolitan Pastern Iowa consisting of 39
counties.
Applications must be received by 9:00 p.m. June 20, 1977. If the Iowa
City Housing Authority is going to submit an application then the decision
must be made now so that Cork can proceed.
PROGP M
A brief description of the program and time phasing follows.
The U.S. Housing Act of 1937 asamended authorized the U.S. Department of
HUD to provide financial and technical assistance to Public Housing Agencies
for the Development and operation of low-income housing projects. The
' regulations under which such rental projects are developed are voluminous
but,in essencestate that projects can be developed, constructed and
operated through an Annual. Contributions Contract. This is a Contract for
loans and annual contributions, execution of which creates legal
obligations between HUD and the. PHA under which HUD finances the developrent
and ,provides financial assistance for operation. The PHA; agrees to oily
with HUD requirements for the development and operation.
This initial application and related documents is'a request for reservation
of funds and if required or desired an application for a Preliminary Loan. '1
The reservation of funds is issued u Po PP n a roval'of thea PP lication in the,form
of a Program Reservation. This is written notification by HUD to the PHA
expressing HUD's determination to enter into a Preliminary Loan Contract or
ACC covering the stated number of housing,units.- It'is'subject to fullfilbnent'
by 'the PHA of all legal and administrative requirements within a'statod-time.
It is; not a obligation. Upon approval of the Preliminary Loan Contracts
,legal
HUD loans funds to the PHA to pay the costs of preliminarysurveys, and
planning (including the'oost of HUD approved appraisals)', necessary to prepare
a Development Program. !The maximimn amount of the''Preliminary loanis $200.00
per unit. This could b! inereased;to'$500.00 per unit by the HUD field office
if special circumstances warrant. The amount of the preliminary loan advanced
"
i by,HUD 'is included'im the development cost of a project and is covered under
the AOC. In the event the project fails to reach'ACC the preliminary loans
are repaid to`HUD by the PHA from any funds or assets available for this
`•!
purpolse.
After the program reservation is issued the PHA will have the maximum of one
year to submit an approvable Developmst Program. Prarptly.after ,issuance of
!
a program reservation HUD and the PHA shall hold a Project' Planning Conference
:
at which they shall mutually agree', upon a time schedule of'all actions to be
taken by HUD and the PHA. The Development Program is a statement of the basic
elements of a, project which is prepared by the PHA.. It will include site
approval, control b PHA),Preliminary Plans and
ocimmntation field office y n�Y
Specifications, estimate of Total Development Cost, demonstration of financi:nl
feasibility, and Administration capability of PHA.
June 3,,1977
• e L. Seydel
Housing Coordinator
Traditional Public Housing
_Z_
Following approval of the Development Program an Annual Contributions
Contract between HUD and PHA is consumated.
Present implementing instructions indicate that the Traditional Public
Housing Program will be utilized to provide new construction for those
families whose: needs are not being met by other programs. Further the
system of, production will be limited to the Turnkey method. Under Turnkey
the PHA following issuance of a program reservation, advertises for developers
to sub-nit proposals to provide a completed project, including site, as
described in the'PHA's Invitation for proposals and the developers packet.
The PHA selects with HUD approval a proposal and after HUD'approval, the
working drawings and the specifications are agreed to by the developer,
the PHA and HUD." The developer and the PHA enter ',into a preliminary
Contract of:Sale. The developer is responsible for all developnent'and
construction including financing. Upon axnpletion of the project and
acceptance by the PHA-arca HUD the PHA purchases the project from the
developer. These steps are all integral parts of the Development Program and
successful accomplishment leads to an ACC. There can be no eonnitments by
'
the PICA or the developer until the ACC has been consumated.
To summarize the financing of a project., Where does the money care'fran?
The Preliminary: loan is money advanced by HUD on a temporary note signed by
-
the Housing Authority. This amount is included in the final approved loan
and the temporary note is paid off scot after',acceptance of the project.
The only risk involved here is that in the event the project does not reach "
ACC stage, the PHA must repay the preliminary loan from, its own sources.
The permanent financing is provided as follows. Approximately, thirteen
weeks,prior,to completion of construction the PHA submits a "Determination
of Minim Development Costs". `Completion and approval_of this docw rnt
m�
by HUD'will'trigger the sale of Bonds by HUD in the next'' scheduled -bond
sale. The Developer will be paid the amount previously, approved in the
Contract of Sale; HUD will initiate payment of the Annual Contributions +
Contract, and the property is transferred to the PHA. Administrative costs
for continuationand operation of the project, exceeding rental<inoome, ,
is also covered by the ACC.
What does it cost the PHA? In'actuality there are no direct costs to the
PHA., Yes;; there is a great deal'of paper work and restrictive agreements to
operate and manage the project.in accordance with HUD regulations. During
the Development Phase and through construction there will be sane personnel
time '''involvement °to include an architect. These costs are covered in the
financing package. After completion and initial rent up present staff
can handle the work load.
The staff concurs with the recommendation of the Housing Commission. The
Housing Authority should make this effort to provide this type housing
alternative to low income families.
,
r.
June 3,'' 1977
L. Seydel
• Housing Coordinator
•
Traditional Public Housing
-3-
APPLICATION
Prior to submission of the application for the Public Housing following
actions are required:
a. Paragraph Chapter 403A State Code of Iowa requires a Public
Hearing. Recaimend the Public Hearing be set for June 14, 1977.
b. A resolution authorizing the subnission of the application is
necessary. 'Pecartmnd this be acted upon following the Public Hearing on
June 14, 1977.''
c.` A Resolution of Cooperation is required. Recommend this be
acted upon June',14,,1977.
The application itself must contain the :folloaing ;items. Preparation of
same; will proceed and be'ready 'for discussion, on June 14, ,1977.
a. PHA organization transcript or. General Certificate.
b. Tenant selection and: assignment plan. Will be similar to present
policies.
c. Transcript of proceedings on iters a, b, c above.',
d. Location of proposed dwellings. Selection of'a site or sites is
not required at this time. Information will be provided which will,indicate
the units will be within the city limits and that selected sites will comply
with:'standard published by HUD.
i.,e.
Proposed Housing type and production method. This will be New
y
Construction produced through the Turnkey method.
-,
f. Proposed type of project and dwelling unit characteristicsa The
PHA will be certifying that the requested dwelling units are in accordance.
with Housing Assistance' Plan goals. The form also', requires that the PHA
propose "Building Type" (i.e. detached single family; semi detached; row;
walkup) by number of`dwellirxj',units by'bedroan size. It is recamended that
the PHA request:
4'- detached - single family four bedroom units for large families.
(five or more persons)
8'- detached or semi-detached three', bedroom units for large families.
V
(five or more persons) j
10 - semi detached or row type - three bedroom units for families.
,(four to six persons),
18 -semi detached/rriu/walk up -two bedroom units for families.
(tvn to four persons)
A total of forty (40) units.
g. Financial feasibili Ly. Conclusions and supporting', data must be
submitted concerning operatim.I ex)xnces, range of renter low-income families
in the community, distribution of these families by income intervals and
estimated rental income from the Project.', This data will be taken from
-
census information and will be provided by, HUD. ,This will be available for f
discussion on 'June 14, 1977.
�t;:i
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_-
��._ _---- _.. e:
' COMPLAINTSRECEIVED BY POLICE
j 1.': CRIMINAL HOMICIDE
0
0
0
0
0
TSiP
RAPE
1
3
1
0'
2
3.. ROBBERY
1
0`
0
1
0
I I.
i- 4.: ASSAULT
11
6
4
11
12
. 5. BURGLARY ti
21
38
37
28''38
e
� 6 LARCENY
82
101
125'
189.182
�
fix„ 7AUTO THEFT
21
7
17
24
39
8: OTHER ASSAULTS
0
0
0
0;
0
i
9 FORGERY AND' COUNTERFEITING
4
7
6
9
10
t a
"r 10 `'" EMBEZZLEMENT AND FRAUD
32
25
9
17
16
I
('
Irl it 'STOLEN PROPERTY
0
1
0
0
0
f
12 WEAPONS..i'
0
0
1
Y
O
13 PROSTITUTION-,,ol
0
0
0
0
j .:
' 4i' 14 •:; SEX OFFENSES
5
9
12
6
l 2
I
15.,`OFFENSES AGAINST FAMILY AND.CHILDREN
39
31
45
38
I'47•,
I
I'
I 16 '' NARCOTIC DRUG LAWS
3
11
3
7
7
i
WLI
Y 17 LIQUOR' LAWS
10
4
3
0
+ j
18..' DRUNKENNESS
22
14
13
19
25
19 DISORDERLY: CONDUCT
45
51
•'37 j
54
48
,• 20. VAGRANCY
0
0
0
0
0
21. GAMBLING
0
0
0
0 .
0
; DRIVING WHILE UNDER THE INFLUENCE OF LIQUOR
24
33
38
22
51
23.,' VIOLATION OF ROAD AND'DRIVING-LAWS
14
16.
24
�46
147—,I--
24, PARKING' VIQI•ATI0 S
292
253
209
264
181
„w .
r; � r
52
35
33
23
35
?J cr,i- VIOLATIOi1S OF TRAFFIC A'^,1 T10TOIt VTdIICLr LA?IS:
886'
831
958
119.11143
2G. OTICR 01T0SES:
19
29
'78
87
96
27 SLSPICIOU:
45
45
34
62
52
i
25. LOST
_
25''
38
88
124
167
29. FOUND:
30 FATAL ?!OTOR VDIIICLI': TRAFFIC ACC.IDF.IITS :
1
0
0 I
0
0
�,
31 h tSO1:AL IliJUIIY:t•IOT(r, VfDIiCLE TIUSFIC ACCIMBUTS:
14
269
14
128
16
116
28
142
19
127
32 P. 0IVRTT Dn!'J.Or, 11(7fOR VE}!ICLl TIWFIC ACCIDDITS:
0
0
0
0
0
.I^33 ; , OT?'L'R .TRAI'FIC ACCiI'111TS :
==
Vu 1 k y III �`
0
0
0
1
l
t
31a r11�LIc ncr,In' !!Ts:
_
I ; I i
1
0
!o
.0
11
35 Roix ncclrEt�rs:
,
, 710
o
0
0
0
C•
";'3G OC^I1PAT:OI.A?, ACCID,.:!TJ.
0'
0
37 lIMAT ncc��^,rS:
34'
58
77
I62
71
�
;gp r�an1AL
0
0
0
1
0
I
a9•, SUIC�CS: �
I '
�. D:
JUI(.iDF.S nTT>;1�rD
3
2
0
0
p:
itxi
g'.
1
1
0
4
1,1 S` DDE11 DEAT!i A?!D DDDITS FOIDID'
y
1'
13
6
5
3
1,2 CAR'. FOR:
1SICf.
3
2
7
12
6
Jai fNITAL
777777777 -71
1
3
2
2
0
DOME Tf I
�
23�
32
62
7 6
78
h5. i' niv�uli-S: .i I
lg '
16
21
22
11
J
h7 FIRES:
12
4
2
1
0
1 C PTC i^ •
_
, •}
TOTALS
028
1857
084
2578125211-
,RESTS MADE BY POLICE
CRIMINAL HOMICIDE`
0
0
0'
0
0
"
1
1
0
0
0
��E
t'.,ROBBERY
1
0
p
p
O
ASSAULT '
2
8
'4
6
3
L
i. BURGLARY l
0
2
0:
3
`1
LARCENY THEFT.
8 c
9
15
9
12
MOTOR VEHICLE THEFT
0
0
0
c'
OTHER ASSAULTS
1 :
7
4
:ARSON I
0
0
0
0
0
FORGERY AND COUNTERFEITING
1
0
0`
1
2
n
FRAUD
0
3
2
0
0
EMBEZZLEMENT
0--:
0
0
1
0
II
STOLEN PROPERTY Buying, Receiving, Possessing
8
9
16
11
12
VANDALISM
0
3
3
2
b
WEAPONS Carrying, Possessing etc
0
0
0
0 I
�•
I
I
PROSTITUTION AND�COMMERCIALIZED VICE
0>'
0
p'
0
p
I
%;
SEX OFFENSES
NARCOTIC DRUG LAWSI
1.
4
0
2
5
GAMBLING
0
0
0
p
0
'•OFFENSES AGAINST THE FAMILY AND CHILDREN
0 '
0
0(
0
0
DRIVING UNDER THE INFLUENCE
15
17
15
16
28
L1QUOR LAWS
1
0'
�I
,
.
1
, . DRUNKENNESS
10
9
9',
116
7
DISORDERLY CONDUCT ,-
.
3
6
4-
5 I
p
I
_+ 0 I
RANCY 0 2 0
ALL" OTHER.OFFENSES (Dog calls, Criminal', Trespass, etc.) 34 47 167' 58
MEN
343
901
L I!
1'
`
V
i I
I
II
i
I
i
T
I
i
1'
`
V
i I
I
II
i
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s
•
AGENDA
IOl9A CITY
PARKS AND RECREATION COMMISSION
RECREATION CENTER ROOM B
JUNE 8,.1977 - 7:30 P.M.
7:30
- 7:35
p.m. --,
Approval of the Minutes of the May 11,
1977,
meeting.
7:35
- 7:45
p.m. --
Report on Neighborhood Parks Meetings.'
7:45
-•7:55
p.m. --
OtherCommittee Reports.'
7:55,-',8:00
p.m. --
New business.
.,
8:00:1.
8:20
p:m. --
Comprehensive Pian - Keating.,
8:20
- 8:40
p.m. --
Land acquisition - Sheets.
r
8:40
- 9:00
p.m. --
Ty!n CaeiAddition - Dietz, Plastino.
9:10
p.m. --
Chairperson's Report.
9:10
- 9:20
p.m. --
Director's Report.
9:20
- 9:30
p.m. --
Other business. "
9:30
p.m. --
Adjournment.
-.
-
I,
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1205
j
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• LAW OFFICES OF
JERRY L. LOVELACE
TWENTY-TWO EAST COURT STREET
IOWA CITY, IOWA 52240
JERRY L LOEACE TELEPHONE
ROBERT M. Ono 354.1900
- AREA CODE 319
June 2, 1977
Hon., Mayor and Members of the City Council U JUN 31977 U
of Iowa City, Iowa' p B B I E S T O L F U S
Civic Center CITY CLERK
Iowa City, Iowa 52240
Re: Proposed new Ordinance re operation of taxicabs
I
Dear Mayor and Members of the Council:
Pursuant to our appearance, before your council on Tuesday, evening last,
May 31; 1977, we„are writing this letter regarding our comments, sug
estio-
gns and objections to the proposed new Ordinance' regarding the
A.operation of taxicabs in Iowa City, Iowa.
N
However, before addressing ourselves to the specific comments, suggestions
`2 or`,objections to theproposed new Ordinance, we would appreciate being ad-
vised or;.having someone advise us as to what complaints, if any, have been
made by any of our customers or users regarding the taxicab service avail-
s able to,them and we would appreciate knowing who the complaints were filed
e t were
t_ f th com l Tn s w
by and when and the substance of the 'compla3n s. I p a
filed with the Members of the City Council or the City, Manager or City
Attorney,;or other, City officials we would appreciate knowing the sum and
' complaints have been filed,'rmeaning'those
f e” If
legitimate_com la n a
substance.of same.' p
complaints which'are true and provably true, we as a'private company will
do our very best to correct the situations giving rise to those complaints.
Ir If we have or we'are claimed to have'violated'the City; Ordinance or State
Law we wish to and have aright we believe to be advised when'and by whom,
how, etc. We basically would also appreciate knowing what exactly has
prompted the City to propose the change in the City Ordinance regarding
the operation of taxicabs as set forth:in the new proposed City Ordinance
regarding, same.
t,
.. X1206
Ikon. Mayor & Mern of the City Council
j 2 June 1977
Page Two
•
It is felt by us that there is some thought by some members of the Council
that we,, the cab companies, have a monopoly in Iowa City, Iowa. This is
not so. '', We are a private corporation, private company and other competition
is not only probably needed but is certainly welcome by us. Iowa -Illinois
Gas & Electric Company, Northwestern Bell Telephone Company and the
City of Iowa City regarding the operation of water, sewage and buses, etc.
have a true monopolyeither by ordinance, statute or franchise. Further-
more, our biggest competitor is the City itself: in the ownership and use
of its city buses and we are also in competition with other, government ser-
vices operating in the City, and providing transportation from point-to-point
which we believe to be and has been in violation of the present City Ordinance
regarding the operation of taxicabs for some time, including S. E. A T. S. , etc.
The, undersigned, attorney for the cab companies, met on one occasion with
Assistant City Attorneys regarding the proposed new Ordinance. At said
time, the undersigned and Ralph Oxford, for the cab companies, voiced our
approval of some portions of the ordinance and our objections to others.
Our, objections were from a legal, economic and practical point of view.
Some of our objections were acknowledged by the City Attorneys as proper
and others were not; This meeting was sometime, I believe,' in the latter
part of 1976 and took place in the City Attorneys Offices at the Civic Center
in Iowa City, Iowa. 'Later; Attorney Kushnir contacted Mr,','Ralph Oxford
and advised him that the City Council was meeting' informally apparently,
on that same day to take up the proposed Ordinance and that Mr.! Oxford was
welcome to be present and to discuss same with the Council. Later,' I'am
advised that day Mr. Oxford was advised this would not be on the agenda at
the informal meeting but we now found out and we found out, at the Council
' Meeting: last Tuesday evening that the matter was in fact on the agenda' at
said informal meeting. We have now received the proposed final Ordinance
which differs in some respects from the draft of the proposed Ordinance dis-
cussed at the above referred to meeting between undersigned and Assistant
City Attorneys, Kushnir and Bowlin, ` sometime, in the latter part of 1976.
c,
We wish to make the following comments to the proposed final draft of the
Ordinance which we' just recently received, to -wit:
5. 16. 1(d) --Definition of Manifest-- We would ask that the word "time" be
`excluded from this definition as it is unnecessary, serves no useful purpose.
In addition we now have 25, 000 manifest,, cards which we have, purchased
heretofore without any provision for time therein and based upon our reliance
of the present Ordinance in effect,
i
Hon, Mayor & Meml of the City Council •
2 June 1977
Page Three
5: 16. 1(h) --Definition of Taxicab"-- We object to the definition thereunder
excluding vehicles owned or operated by a state or local government entities
which provide transportation to the public inasmuch as they are in direct
competition with, the cab companies. They serve the public as does our
companies and should be regulated the same as our companies. We also
believe that certain state or local government transportation systems pre-
sently being operated under the present ordinance and that have been in
operation for sometime have been operating illegally in violation of the
present ordinance covering taxicabs.
5: 16. 3(g) --Application for Certificate -- Such further pertinent information
as to the City Councilof Iowa' City, Iowa; may require. This is so broad,
vague and ambigious, setting forth no standards that neither we or anyone
else applying for a certificate knows' or can know what the City may or, may
not want or if same. has any, relevance or materiality to the;. operation of a cab
business in Iowa City, Iowa. We would ask that it be deleted. Ini the future
if additional matters or information are needed in the application this could
be done by: amendment or change.
II
ti
5. 16. 7 --Suspension or Revocation of, Certificate. -- Under this section of the i
Ordinance as we read it the City. Manager is empowered by his action alone
and with no judicial review available for all practical' purposes to take a cab
off the street for a period of at least 67 days. Thus, the City Manager,' by
said Ordinance. is exercising j violation and in
a judicial function in vio of Iowa law
violation of applicable duel process and equal protection standards of the
Federal and State Constitutions and is given the power, without' conducting
a hearing, allowing us to confront witnesses or evidence against us or, to pre-
sent evidence ourselves to revoke or suspend any certificate issued. 'In
substance, if in fact an adverse decision of the City Manager', and Council is
reversed in Court, ItheCab' Company would have been out of business for pro-
bably three to four montlis with the attendant' loss of income and unemployment
of their drivers and employees. We propose that if the City or its officials'
for any reason feel that the Cab Companies are operating illegally or in
violation of the City Ordinance,' that it, the City, after serving written notice
thereof on the Cab Companies setting forth the allegationsof violations that
in the event they are controverted or denied by the Cab Company that the City
set an immediate hearing for same and conduct a hearing and provide a method
of appeal to the District Court of Iowa. Or, as with most of your, ordinances,
Hon. Mayor and hie rs of the City Council
2 June 1977
Page Pour
provide a procedure which is now probably covered by ordinance or state law
allowing the City to go directly to Court for an injunction and other relief or
orders after a hearing in Court. This to us not only seems to be fair and
equitable but the legal way for this procedure. We also believe the procedure
shouldapply to all other transportation companies or agencies being operated
in the City either by complaint from the City itself or from a private citizen.
Under the:wording of the proposed final draft of the new Ordinance, the',
certificate is revoked or suspended upon receipt', of the written notice from the
City Manager.
I'
5. 16. 12 --Mechanical Inspection; Acceptable Standards of Fitness-- This
section of the Ordinance is not only unfair, discriminatory,' arbitrary and
confiscatory, but is not necessary. ;Under present Iowa law a police officer
or,other Iowa law enforcement officer may filecharges or require an inspection
for good cause or reasonable information on'grounds or reasonable information
to believe is a violation thereof. The City, by permitting a police officer
to order a taxicab to be inspected, if he has reasonable doubt of its fitness, is
allowing the City or. a police officer to take it upon himself to take a cab off
the Streets for maybe as long as a half day, one day or two days or perhaps
longeri based on his suspicion without setting forth any standards other than
reasonable doubt. This is also allowing the officer by an attempted delegation
'to exercise judicial:or quasi-judicial functions to the detriment of ,t cab
driver and owner. 'The results of the practical matter involved and further
protection1or the City in that the Cab Company because of the tremendous
cost of insurance which is accelerated by each accident, etc. !constantly
inspects, looks at and takes necessary precautions to see that its cars and
vehicles are in good, safe running condition for the protection oflthe public,
jl its drivers and its insurance record.' In the ''event that the Ordinance would
go into effect, 'we would ask,, assuming the above legal arguments and principles
could be overcome, 'that this portion of. the Ordinance apply equally to all
vehicles for public' transportation in the City, not just our privately owned
companies. We would further suggest that it be only fair and reasonable to
require the City to pay, in the event that an inspection of the vehicle show s"
that it passes or meets the inspection requirements all costs, including the
down time of the cab while off the street and not being operated as such and
the consequent loss of income therefrom.
5.16. 14 --To Wear Cap of Distinctive Color, which shall designate employer: --
This portion of the Ordinance appears to have been taken from an Ordinance
in New, York City,` Chicago or other larger City where there are many cab
I-Ion.Mayor & MembOf Lhe City Council
2 June 1977
Page Five
companies operating, wl-dch is not the case in Iowa City. We do not believe
this is a requirement of the other transportation systems operating in the
City. The drivers of our Companies have further expressed their disapproval
of this requirementand we frankly do not see how or why the wearing of caps
by the drivers provides for the health, safety and general welfare of the
residents of Iowa City; Iowa.
o. 16. 16 --Taximeters: Required Standards; Charges to be based upon Taxi-
meter Readings - At the present time and under the present Ordinance
fares are based on mileage. Perhaps in some few and minor cases this is
seemed unfair for persons going to and from'a given point,either due to the
driver's error in computing same, one way,. streets' necessitating a longer
p point, etc. To require meters would not
route back from a point than om
only require an additional expense of $7, 200. 00 plus installation, plus' the
maintenance and repair thereof, but these, are not error free. Also, at
least based on our present knowledge of same and ,the mechanics thereof
if we pick up a customer at point A and go to point B and then to point C,
etc. for other customers how, do we adjust the meter for A, B, C, etc.
In a larger city'or town where several companies are in business and where
once a customer is picked up there is a direct delivery with no stops for other
customers,' etc., the meters work. The only fair and accurate way to work
meters in'Iowa ,City, Iowa, 'would be to require twice as many, vehicles, to
use twice as much fuel to carry the same number of passengers. This,re-
sults in not, only a waste of fuel and time, butas with all investments, ! the
costs of the meters; repair and maintenance thereof,' etc. will have to be
born by the':public,'the users, who are residents and citizens mostly of
Iowa City,, Iowa. Again, if there have been complaints regarding the fares
charged on mileage, we would appreciate knowing of same, by,whom, the
names of our drivers involved, etc. so that we can investigate' same and if
true, take appropriate action to alleviate the probles and future problems
on this.
It seems to us that.when a proposed Ordinance for all practical purposes is
aimed at regulating one particular business, that before consideration or
passage thereof, f that that business should at least have the opportunity to
meet and give their comments, views, and suggestions to the City Council.
This has been done.often'in the past and we see no reason why it should not,
has not been done or cannot be done in tlus instance.
i
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I -Ion. Mayor and Mers of the City Council
2 June 1977
Page Six
•
We have tried to and will keep on attempting to work with the. Council, the
City Manager and City Attorney to work out the above noted objections to
i
the Ordinance.
The point has been raised by one or more members of the Council that the
dispute over the proposed new Ordinance and our Companies is a philosophical
dispute or difference. Philosophy as defined by Webster's Dictionary literally
means the love of wisdom. In actual usage it is the science which investigates
the facts and principals of reality and of human nature and conduct. We,
therefore, submit the following:
Reality -, We have been losing money with the Companies but each
year we are losing less and probably would be in the
black next year but for this Ordinance and our increased
costs, etc.
Reality - Rates or fares will go up substantially under the new
Ordinance because of its requirements - people. People
who it would severely effect are the elderly, the low
income and, the 'disabled.
' Reality - The Ordinance is aimed at one Company-: - ours.
i
Reality - We are not a monopoly and our biggest c
P Y ggompetitor - with
tax supported dollars is the City, and County with their
bus', system, S. D. A. T. S. system, etc. which we; along with
other taxpayers are paying and supporting. The City, the
telephone Companyand Utility Company have monopolies in
Iowa City.
-Reality - The new Ordinance discourages, not encourages, competition
r from a new or other differently owned Taxicab Company or
business.
Reality Our biggest competitor, at public and tax supported expense,
is in the position of and is regulating our business -a privately
owned business, and is attempting to delegate, to employees of
the City judicial functions to in'effect,without a trial or jury,
put us out of business or severely' curtail' our business. This,
without' benefit of or a finding by a judge or jury of our guilt,
etc. as to any provisions of the Ordinance'.
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Hon. Mayor and McSers of the City Council •
2 June 1977
Page Seven
Reality Tne Constitution of the United States of America and
State of Iowa and the Laws thereof are for the benefit and
protection of all citizens, even Taxi-Cab Companies and
its owners and employees. Article I, Bill of Rights,
Iowa Constitution provides; All men, (and women) are by
nature free and equal, and have certain inalienable rights
among which are those of enjoying and defending life and
liberty acquiring, possessing and protecting property
and pursuing and obtaining safety and happiness.
Reality - Section 9. 10, 18 and 21 of the Iowa Constitution and
similar portions of the UCS., Constitution provide for
trial by; jury, rights of persons accused, taking of
private property without making just, compensation,
Bills of Attainder, ex post facto laws impairing the
obligations of contracts.
Reality`- Article III of the Iowa Constitution vests all legislative
authority, with the Iowa General Assembly.
Reality - Municipal Home Rule, Amendment —1968 -'to Iowa
Constitution grants' MunicipalCorporation Home Rule
power and authority, not inconsistent' with the laws of the
General Assembly, etc.
Reality - The City,, Council represents; all of citizens or it represents
>none.
i
Reality - Previous Councils, City Managers, Urban Planners refused
to or did' not listen to objections,' comments or suggestions
of.its citizens or those citizens being directly affected by
Urban Renewal, etc. and we now have the results of'same
to live with as is commonly known.
Human Nature and Conduct -- Based on past experience and history in
the U. S; or, elsewhere, ;where a citizen believes his rights have been infringed
upon by, government, lie or she either do nothing,do something, go to Court
for redress or go out of business. We intend to, ;have in the past, are doing
now, and will do so in the future, to stand up, speak for our right to possess
and protect our property and to pursue and obtain safety and happiness and to
protect and defend our Constitutional and legal rights.
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Avenue Bridge on the sidewalks.
in view of the fact that the
reconstruction
.work to be accomplished on this
bridge during the course of
the summer to
include reconstruction of the sidewalks, a request was made
that the City
consider including splash 'guards
in the project. Plastino
indicated he
would request the engineers to include
this feature in the
scope, of the
work.
5/15/77
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` REHABILITATION FINANCING HANDBOOK `
'
DEPARDIENI OF CO(kMNITY DEVELOFMENI
CITY OP I01VA CITY, IOWA
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TABLE OF CONITNI:S
LTIAIYI'IJZ 1.
GENERAL
CHAP`1TR 2.
PROJECI' FINANCING AND ELIGIBLE PROJECT COSTS
C1 M1.11 3.
ELIGIBILITY REQUIRIT1ENTS
CHAPTER 4.
ASSURANCE THAT ROiABILITATION WILL BE COMPLETED
'
CIIAIn'ER Sl
COSTS INCLUDABLE IN REHABILITATION GRANT AND IRAN
Section 1. Costs' Includable in a Rehabilitation Grant
Section 2. Costs Includable in a Rehabilitation Loan
tCIIAPTER
6.
LIMITATION ON Ah10UNT OF GRANT
CHAPTER 7.
LIMITATIONS ON A )UN'T OF LOAN
Section 1. Forgivable Loan
'
Section 2. No Interest Loan
'
Section 3.< Reserved.
Appendix 1. Promissory Note — Forgivable Loan
CHAPTER 8.
RESERVED. i
CHAPTER 9.
PROCESSING AND SUBMISSIONS FOR REHABILITATION GRANT
Appendix 2. Guide Form of Letter to Applicant Canceling
Rehabilitation
Grant
CHAPTER 10.
PROCESSING AND SUBMISSIONSIFOR
A REHABILITATION LOAN
C1 VdyrER 11.
LOAN SETTL.EMIMP
CHAPTER 12.
LOAN CLOSEOUT ,
I,
CHAPTER 13.
TERMS AND CONDITIONS UNDER
WHICH REHABILITATION GRANTS AND LOANS
ARE MADE'
+
CHAPTER 14.
FUNDING OF INDIVIDUAL REHABILITATION
GRANTS AND LOANS AND MANAGEMENT
OF REHABILITATION ESCROW ACCOUNT,',
'
CHAPTER IS.
PROPERTY APPRAISAL
'
'
CHAPTER 16.
NUMBERING GRANT AND LOAN APPLICATIONS
CHAPTER 17.
APPLICATION FEES
CHAPTER 18.
DETERMINING WORK TO BE DONE WITH REHABILITATION GRANT AND LOAN
5
,
CHA1'T1R 19.
CTING FOR REHABILITATION WORK
CONTRACTING
V
CHAPTER 20
INSPECTION OF REHABILITATION WORK
'CHAPTER
21.
RESERVED'
L14kPTER 22.
APPLICANT'S INCOME
CHAPTER 23.
TRUTH IN LENDING
RECEIVID
APPROVED
BY T LEGAL DEPARTMENT.
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Revised:
RECEIVED APPROVED
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CIIAI'1T1Z I. GHN11:1ZAL
1
1. LEGAL AUTHORITY FOR RRHA111hJPA7'10N CIMAT:; ANU LOANS. Rehabilitation grants and
loans to rehabilitation residential structures located in certain .oncentrated
rehabilitation areas are authorized by City Council utilizing Title I assistance
under the Housing and Community Development Act of 1974, as amended.
'
2. DEFINITIONS. Following are definitions of various terms as used with respect
to rehabilitation grants and rehabilitation loans:
'
a. 'Elderly. For the purposes of this program it shall mean any one or more of
the property's title holders who is sixty (60) years of age or older.
'
b. 'Family. The applicants family includes the applicant and any other person
or persons related by blood, marriage or operation of law, who share the
'unit.
same dwelling
'
c. Handicapped. For the purposes of this program a person shall be considered
handicapped when that person receives social security disability compensation
'
or disability compensation from other public assistance organizations.
d. Incipient Violation. An element of the structure required or contained in
tFe pJinimum Housing Standards, that at the time of inspection is found to
'
Y bein,such a state of deterioration that if left uncorrected, will further
deteriorate into an actual violation in the near future.
'
c. ;'Investor -Owner F o ert . 'A property used entirely for residential purposes
that is eit er: (1 not occupied by the owner, or (2) contains three or
more dwelling units whether or not occupied by the owner.
'
' f. Liquid Aid Assets. Property that can be readily converted into cash without
appreciable loss in value such as: savings accounts, and/or stocks and
o i the dwelling to b rehabilitated or a'motor vehicle when
b nds. Equity n g e e
'
used for transportation to and from employment or school is not considered
when computing liquid assets.
'
Ji g. Avner. Means one or more natural' persons who hold legal title to a
property', to be rehabilitated.
h. Amer -Occupied Property. A property occupied by the owner that is used
entirely for residential purposes and that contains one or two dwelling
units.
'
i. Rehabilitation Construction S ecialist. An employee of the City's Department'
o Housing,and nspection ervices charged'with the duties, of administering
the', physical aspects of rehabilitation, including surveying, cost estimating,
;
specification writing, owner.and contractor guidance, public' information
and construction compliance review.
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Rehabilitation Cont. The total costof rolmirs and improvements and other
costs for tela ilrtation to be incurred by the applicant that are inclu dahle
in a rehabilitation grant and/or loan, whether or not financed in part with
'
funds from other sources (see Chapter 5).
k.
Rehabilitation Financial S evialiat. An employee of the City's Department
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o Housing anInspections .ervlces charged with the duties of administrating the
financial aspects of rehabilitation, including interviewing, eligibility
determination testing, verification, loan or grant application processing,
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loan closing, escrow management, and final disposition accounting..
1.
Rehabilitation Review Board. An administrative board comprised of the
Director of
the Department of Housing and Inspection Services, the Rehabili-
'
tation Finance `Specialist,,'the Rehabilitation Supervisor,' and a member of
the City's legal staff all of whose 'function shall be to review and approve
or disapprove applications for City loans according to the procedures as
`
set forth herein. Other board members will be allowed as appropriate.
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Rehabilitation Standards.
Housing
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In Concentrated Rehabilitation Area. Requirements of the Minimum
Standards Ater 9.30 o -t e Municipal Code and any property rehabilitation
requirements, established in an Urban RenewaliTan adopted by the City of
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Iowa City which'is applicable to the properties to remain in the project
area.
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CHAPTER 2. PRWE''CI' FIXMC1NG AND P.LIGIBLI: PRWEC`J' COSTS
'
1. GENERAL. This chapter covers City Council provisions required for the making of
re Ea ilitation grants and loans, sources of funds to be used for making rehabili-
tation grants and loans, program reimbursement for advanced rehabilitation fees,
and the costs in connection with rehabilitation grants and loans that are
eligible project costs.
" 2. PROJECT FINANCING. Rehabilitation grants and loans may, be made only if there
t
exists a City. Council resolution approving the area for, rehabilitation grants
and loans, and sufficient appropriation of funds to finance said grants or
rehabilitation loans.
,
a. Inclusion of Grant and Loan Amounts inPro'clt Budgets. The amounts for
rehabilitation grants and loans s 11 be inu Z in the Community
'
Development Block Grant budget as approved by the City Council.
b. .Source o}' Funds for Relu:bilitation Grants and Lona.
(1) Rehabilitation Grants. Funds' -to cover an approved rehabilitation
grant shall a provided by the City from project funds in accordance
with Chapter 14.
'
(2) Rehabilitation Loans.: Funds to cover an approved rehabilitation loan
s ll e provided-Ey' the City. Management of the escrowand debt
collection proceduresyfor approved rehabilitation loans are contained
in Chapter 14.
3. ELIGIBLE PROJECT COSTS. The costs described below, related to the processing
'
of reFiabilitation grants and loans are eligible project costs in a concentrated
rehabilitation project as approved by the City Council.Provision shall:; be
made for these eligible project costs in the budget which is appropriate'for
the project or program involved.
a. Ci-ty Overhead and Tliird-Party Contracts. In connection with concentrated
'
rehabilitation projectias approved by the City Council�in which the making
of rehabilitation loans and grants are eligible' activities; the following
costs incurred in the processing, and administering of rehabilitation loans
and grants are eligible project costs, to the same extent as costs incurred
,
for other eligible project activities.
(1) City cost for staff salaries, wages, and general overhead.
(2) Costs incurred under contracts or agreement with organizations, firms,
and individuals for technical, professional, and legal services (in
'
lieu of, providing such services by the use of regular City staff).
Contracts and agreements for the provision of technical, professional
or 'legal services must meet the City requirements for the third -party
'
contracts as to foam and methods of solicitation and execution, and
• shall be concurred in by the City Attorney's office and the City Council.'
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OiAh'ITIZ
3. IiLIGIDILI71' RfiQunuml..NIS
'
1. GENERAL. This chapter sets forth eligibility requirements as to the property,
and the applicant for a rehabilitation grant and/or loan. A rehabilitation
grant and/or,'loan may be made only with respect to a property located within:
'
the concentrated rehabilitation area(s) as approved by the City Council. The
propertymust need rehabilitation to meet the Rehabilitation Standards. Neither
an individual family ,nor a structure may participate more than once.
2. REQUIREMENTS APPLICABLE TO APPLICANT FOR A GRANT. To be eligible for a rehabili-
tation grant, the applicant must be an individual or family who owns and occupies
a one- or two dwelling unit residential property, or is a purchaser -occupant of
such a property under a land sales contract.
'
3. REQUIREMENTS APPLICABLE TO EVERY LOAN. In order to be eligible for a rehabilita-
tion loan, t eapplicant must evi ence adequate ,capacity to repay the loan. A
rehabilitation loan cannot be approved if the applicant's record shows a disre-
gard for former obligations, or if there is a clear inability to make the payment
that will be required. In addition,',depending u on the type of applicant and
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,. property involved, the requirements as described below also, apply.
` 4. REQUIREMENTS APPLICABLE TO LOAN FOR RESIDENTIAL^.PROPERTY. An applicant for a
' rehabilitation loan on residential property must be the owner of the property.
'
An applicant for a rehabilitation loan who may be eligible for arehabilitation
grant shall be advised and assisted in'applying ,for a rehabilitation grant, as
well as fora rehabilitation loan, if needed to supplement the grant funds.
'J 5. LAND SALES CONTRACT. The term ."land sales contract" refers to any transaction,
,i regardless of the nomenclaturefby which it is known, in which the purchaser -
occupant obtains fee title only if he'completes,'a series of installment payments
over a terra of years. ,The form of a',land sales contract may vary according to
the circumstances of each sale:
'
a. Eli ibilit Re uipements. In order for a purchaser under a land sales
contract to a eligible for a rehabilitation grant to cover rehabilitation
costs, all of the following minimum requirements must be met.
'
(1) The contract shall be a written, legally binding, instrument involving
property that after rehabilitation will be all residential in
'
2 character.
(2) The seller of the property must hold fee title to the property and
while the contract is in good standing, must be unable to use the
property for collateral or to convey the property to, any other party +,
d
I. unless such use for collateral or conveyance of fee is subject to the
land sales contract.
'
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The foregoing 'provisions, however, shall not affect the right of seller
to mortgage the property as long as the amount of such mortgage does not
'
exceed the amount of the seller's equity in said property and as long
as:'the monthly mortgage payments and interest rate are no greater in
' amount than the contract payments.
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CHAh1'M 4. ASSHRANCF THAT RlBAB11.ITNI'ION WILL lili C(IMET13)
'
'
1. GENERAL. In some instances the rehabilitation cost may exceed the amount of
re ie ilitation grant and/or rehabilitation loan. In such cases, rehabilitation
grant/or rehabilitation loan will not be made unless the applicant can provide
'
whateveradditional amount is needed to assure completion of the work so that
the property will meet at least Rehabilitation Standards. If: the rehabilitation
grant and/or rehabilitation loan will not be sufficient to pay for the rehabili-
'
tation cost to meet at least the Code, the Rehabilitation Finance Specialist l
shall not -approve the rehabilitation grant and/or rehabilitation loan unless
the applicant can furnish supplementary funds sufficient to complete the work.
'
j 2. GRANTS AND LOANS ON RESIDENTIAL PROPERTY. If the applicant for rehabilitation
grant and/or rehabilitation loan on,residential property is obtaining a supple-
mental loan, neither'.the rehabilitation grant application nor the City rehabilita
tion loan application shall be approved until the Rehabilitation Finance
Specialist has secured evidence that the applicant has obtained an adequate and
satisfactory supplemental loan commitment. h'hen the loan will be obtained from
'
a recognized lending:institution'evidence furnished, by,the'Rehabilitation
Finance Specialist shall consist of a signed, bona fide written cor.mitment to
make the loan for the purpose of the rehabilitation work. The loan shall be
'
in an amount which, when added to the rehabilitation grant and/or rehabilitation
]oan'and any other funds the applicant will furnish, will be sufficient for
completing the required rehabilitation work. When the applicant is furnishing
supplementary funds from sources other than a recognized lending institution,
'
evidence that actual funds are available shall consist of verification and
documentation by the Rehabilitation Finance Specialist that the applicant can
deposit the required amount in the rehabilitation escrow account '(see Chapter 14).,
'
3. LOAN' CANCELLATION. Should a loan be canceled after work has begun due to some
unforeseen occurrence, the City reserves the right to withdraw their loan unless
,
the,,property ert 'can be brought u to meet the Rehabilitation Standards.
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if the homeowner changes his mind and decides not to do incipient'or general
repairs, the rehabilitation loan will be reduced to the actual amount of money
used rather than the full amount.
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CHAPTER S. COST INCLUDABLE 1N IMIAB[LITA'I'ION GRAXII'S AND LOANS
' SECTION 1. COSTS INCLUDABLII IN RIJIMILYrA'TION GRANT
' 1. GENERAL. A rehabilitation grant may be made only to cover the cost of rehabili-
tation necessary to make an owner-occupied, or land contractpurchaser occupied
one or two dwelling unitresidential property conform to standards for safe,
decent, and sanitary housing, as specifically required by the '.Rehabilitation
' Standards, and other costs as provided in this section. As a result of the
rehabilitation work financed, in whole or in part by a rehabilitation grant, the
property must, at A minimum, conform to the Rehabilitation Standards. Rehabili-
' tat' grant funds shall be used to achieve economical and practical compliance
with the Rehabilitation Standards.
' 2. INCLUDABLE COSTS. Costs includable in a rehabilitation grant are the costs of:
meeting the-requirements of the Rehabilitation Standards; correcting incipient
violationsl(if permitted, see Chapter 6); and building permitsland related fees
as described' below:"
a. Re uirement o Code. When necessary to meet a specific requirement of the
Re a ihtation Standards, a rehabilitation grant may be,used, to the extent
necessary for:
(1) The rehabilitation or removal of elements of the dwelling structure,
including basic equipment,;and of other improvements to, the property
such as garages, fences, steps, walkways, and driveways: The term
"basic equipment" includes such items'as heating furnace, water heater„
and electrical and 'sanitary fixtures.)
t(2) The 'provision of sanitary or other facilities, including the provision,
r'. expansion and finishing of,space necessary to accommodate those
' facilities.
(3) The provision of additional or enlarged bedrooms, if required by the
' Rehabilitation Standards.
(4) Grading, filling, or landscaping of the grounds, if required by the
Rehabilitation Standards.
b: Energy Conservation Measures. A rehabilitation grant may provide for specific
energy conservation measures such as storm windows, caulking and %weather-
I , stripping, and attic and wall insulation.
c. 'Fire Protection Devices. A rehabilitation grant may be used for the installa-
tion o early warning ire alarm devices such as smoke detectors. ji
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d. intiien£ Violation. In order that a,property may be brought up to and
maintain at �e Rehabilitation standards level, a rehabilitation grant may
' be used for rehabilitation work necessary to correct incipient as well as
actual violations of the 1, Rehabilitation Standards. An incipient-violation
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5/77
exists, if, at the time of inspection, it is thought that the physical
condition of an element in the structure will deteriorate into an actual
violation in the near future (such as within a year or two).
'
(1) Examples of Different Types of Incipient Violations.
'(a)
'
(A furnace may be expected soon to become inoperative or hazardous
because of its, age, condition or use. A rehabilitation grant may
provide for the replacement of the entire furnace.
'
(b) A roof has one or more small leaks that can be patched at low
cost, but the roof probably will continue to develop leaks. A
rehabilitation grant could provide for replacing the entire roof.
'
(2) Reporting Requirements. The property inspection report, should identify
the incipient -violations to, establish the basis for providing for
'
corrective work in the grant. For enforcement purposes; it is
necessary for actual -violations to be identified and listed separately
from incipient -violations. However, the amount of rehabilitation grant
to be made may cover 'both actual and incipient violations.
'
(3) Limits on Inci lent Violation Correction. Property owners eligible for
t e rela ilitat1on grant may receive a itional monies for incipient
violation correction not in excess of 25% of the estimated(and verified)
cost of correcting active Rehabilitation Standards, energy conservation
measures, and fire protection devices (i.e., if: a structure required
'I
$4,000 to correct active, Rehabilitation Standards violations,,energy
conservation' measures and fire protection devices and if the owner,
qualified for the grant, not more than 25% or '$1,000 could be granted
for incipient correction).
'I
e. Removal of Architectural Barriers. A rehabilitation grant may be utilized
to modi y, alter or replace components of,a'structure that in their present
'
state or by their, absence, impede physically limited occupants from enjoying
the full benefits of comfort and livability normally experienced by non -
'handicapped dwellers. The construction contract shall specify as applicable,
ramps, wider doonaays, lower plumbing fixtures or light controlling switches,'
installation'of secondary toilet 'rooms and/or laundry facilities and other
items, specific to'a given structure and, its occupancy. The Rehabilitation
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staff shouldlexercise prudent judgementiin selecting construction' options
to provide ready access at moderate cost. .
f. Buildi Permits and Related Fees. A rehabilitation grant may provide funds
' >,
to cover t e costo building permits and related fees that,are required
to carryout the, proposed rehabilitation work. However, since the construction
contract documents will require the contractor to pay for them, this cost
'
ordinarily would be included in the contract amount (see Chapter 19).
g. Sales Tax. Since the construction contract is a private contract between
1
a property owner and a private contractor, the grant proceeds may be utilized)
to pay for required sales taxes. The contractor shall, be required to include'
sales tax in the bid price.
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CIW'TER S. COSTS
INCLUDABLE IN ROMILITATION GRAMS Mill LOANS
SECTION 2. COSTS INCLUDABLE IN RERABILITATION LOM'
'
1. GENERAL. A rehabilitation loan may be made only with respect to a property
which needs to be brought, up to Rehabilitation Standards, and, after rehabilitation,
the property must, at a minimum,conform to the Rehabilitation Standards." Within
'
the limitations on amount of loan as set forth in Chapter 7, a rehabilitation
loan may also include amounts for purposes other than meeting the Rehabilitation
Standards, as set forth in this section.
'
a. Consideration of Future Resits for Work Exceedin q'Rehabilitation Standards.
Wit respect to a propertycontainingrental dwelling units, a re a ilitation
'generally
loan should include funds for work that goes beyond the Rehabilita-
'
tion Standards requirements only to the extent that this will not cause the
rents to exceed the means of typical families living in the project area.
b.
,
Conversions. In general, conversion of a property so as to change either its
use or.t a number_oC units may be provided for in a rehabilitation loan only
if conversion is necessary:to meet Rehabilitation Standards or to eliminate
a nonconforming use. However, a rehabilitation loan may provide for 'conver-
sion if therelis an insufficient market for the property in its. Present
form, and conversion will make rehabilitation and maintenance economically
feasible. However, conversion costs not required by the Rehabilitation
Standards or Zoning Ordinance shall be regulated according to the formula
set forth below under General Improvements (If).
,
s, c. BuiZding'Permita and Related Fees. A rehabilitation loan may provide funds
to cover the cost of building permits and related fees that are required to
carryouttthe proposed rehabilitation work. However,', since the construction
'
contract documents will require the contractor to pay for them, this cost
ordinarily would be included in the contract' amount (see Chapter 19).
'
d. Architectural Services. In some unusual cases, an applicant may employ a
private architect to prepare plans and drawings for the rehabilitation of
his property. In these, cases, the City rehabilitation loan may include an
`
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amount,to'cover the cost of the architectural services for -the foregoing
rehabilitation work to be financed by the City rehabilitation loan.
e. Certain Related Costs. A City rehabilitation loan may include funds to cover
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certain, costs and c arges related to processing the loan application and
to obtaining security for the loan.
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(1)T e o RelateCosta. A City rehabilitation loan may provide for the
dIlowingi
cost o .then
Appraisal fee.
(a)
(b) Title reports.
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CHAPTER 6. RDiABILrrATION GRM'7'
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1. GENERAL. This document sets forth the eligibility requirements in regards to the
'
property and the applicant for a housing rehabilitation grant.
Rehabilitation grants are available only in the rehabilitation areas designated
'
by the City Council. The property must be in need of repairs which are necessary
to'meet:the Minimum Housing Standards requirements.
2. APPLICANT ELIGIBILITY. To be considered for a rehabilitation grant, the applicant
,
must be in compliance_ with the following criteria:
a. %The applicant must be the owner -occupant of'a 1 or 2 dwelling unit structure
'
'
that is all residential in character and is within the City Council designated
-
rehabilitation area, or
'
b. The applicant must be a purchaser -occupant of a 1-2 family all residential
dwelling'', under a'land sales contract in effect for at least twelvemonths,
and is within the City Council designated rehabilitation area.
,
c.t The applicant mustbe 60 years of age or older, or handicapped.
d. `fhe applicant must meet the following financial qualifications:
,
(1) 'Have Liquid Assets not in excess ol.
$20,000for a 1 person household
$25 000''for a 2 or morePerson household
(2) Monthly Income Considerationa
(a) We would collect and report the following 'rg oss monthly income
'
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data:
1 Base a for Ilead of Household sou
O pay spouse, other family.members.
•
(2) Any other earnings-(other,;jobs, ,etc.)
'
(3) . Net income from property being rehabilitated (gross income
minus operating expenses)
(4) Any other income source (interest, etc.)
,
(5) Income from; social security, pension, annuities, general
it
relief, ADC'.
(b) We would then adjust downward the income of the household by
7educting:
(1) 10% of 2a-1 through 4 above for Federal, State and local taxes
:.
and
(2) 25% of 2a-5 above for fixed income consideration.
(3): $25 for each child under 18 years of age or a'full time student
dependent residing in the home to be rehabilitated.
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CIW'1'l:B 7. LIMI'I'A'1'lONS ON MIUIM' Of '111L'
'
LOAN
SECTION 1. FORGIVABLE LOAN
'
1. GENERAL. This section sets forth the eligibility in regards to the property and
'
the applicant for a housing rehabilitation forgivable loan.
Forgivable loans are available to all eligible owner -occupants of one or two
family residential properties which are located in the rehabilitation areas 'desig-
nated ,by,the City Council.,
2. APPLICANT ELIGIBILITY. To be considered for a rehabilitation forgivable loan,
the applicant must be in compliance with the following criteria:
a. Be the owner -occupant of a one or two family dwelling which is located in
'
the designated area within, the City.
b. Be eligible for the rehabilitation forgivable loan determined on the basis
of the following income and, asset limitations:
'
(1) Maximum Income'. Have an adjusted annualincome for the household
(See Chapter 22) which does not exceed:
$5,000 for a l person household
5,700 for a 2 person household
t
6,400 fora 3 person household
7,100 fora 4'person household'.
' 7,700 for a 5'person household
8,200 fora 6'person household
; •; 8,800 for a 7 person household'
9,400 for an 8+ person household
2 au f
s Have Li id Assets not in exces
( ) s o
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(a) Applicant under 60 years of age or who is not disabled:
1
,$10,000 for a 1 person household_:
,
$15,000 for a 2lperson household
$20,000 for a 3 or more person household
1
(b) Applicant,.over 60 years of, age or who is disabled:
'
" $20,000 for a 1 person household
for a 2 or more person household
,
(3) Monthly Income Considerations
'We
'
(a) would collect and report the following gross monthly income
data:
Base for Head Household,
(1) pay of spouse, other family members.
' (2) Any other earnings (other jobs, etc.)
(3) Net income from property being rehabilitated (gross income
minus operating expenses)
'
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Rehabilitation Financing Handbook
5177
(4) Any other income source (interest, etc.)
(5) Income from social security, pension, annuities, general
relief, AOC.
' (b) We wou%d hen adjust downward the income of the household by
ae�ing:
' (1) 10% of 2a-1 through 4 above for Federal, State and local
taxes and
(2) 25% of 2a-5 above for fixed income consideration."
' (3) $25 for each child under 18 years of age or a full time
student dependent residing in the home to be rehabilitated.
' 3. SPECIAL PROVISION FOR ELDERLY AND/OR HANDICAPPED. Elderly or handicapped
applicants who are eligible for the grant and whose dwellings require repairs
which will exceed the maximum amount of the grant, may use a forgivableloan in
conjunction with the grant.
a. Eligibility To be considered for a rehabilitation forgivable loan to
supplement a $5,000 grant, the applicant must be in compliance with the
following criteria:
it (1) Be the owner -occupant of a one ;or two family dwelling which is in'the
rehabilitation area designated by the City Council who is either 60 years
of age or older or handicapped.i
(2) Be eligible for the rehabilitation grant determined on the basis of
' income and asset limitations.
(3) The homestead 'must require more lthan the $5,000 grant ceiling to meet
minimum rehabilitation standards.
b. Limitation on Amount of Forgivable Loan.! The amount of a forgivable loan that
aW applicant may receive shall be limited by the following:
t (1') The difference betaeen the actual (and approved) construction costs
minus,the $51000 rehabilitation grant.
(2) $5,000.
C ASSURANCE THAT REHABILITATION WILL BE COMPLETED.
a. In some instances the rehabilitation cost may exceed the amount of a forgivable
loan and grant., In such cases a rehabilitation grant and forgivable loan
' will not.be made unless the,, applicant can provide whatever additional amount
is; needed to assure completion of ''the work so that the property ,will meet at
least the Rehabilitation Standards.
b. If the applicant for a forgivable loan on residential property is obtaining a
supplemental loan, the rehabilitation grant and loan application shall not be
' approved until the staff has secured evidence that the applicant has obtained
an adequate and satisfactory supplemental loan commitment.
`' 7-2
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'
5.
TERMS AND CONDITIONS.
a. Forgivable loans shall be secured by a lien against the property.
'
b. Amortization.
(1) If the rehabilitated property is sold or transfers ownership prior to
'
the first year anniversary of the loan, 100% of the loan principal shall
be called due.
'
(2) If the rehabilitated property is sold or transfers ownership prior to
the second year anniversary, of the loan, 50% of the loanrinci al
P P
amount shall be called due. The remaining 50% is 'for iven.
g
(3) If the rehabilitated property; is sold or transfers ownership prior to
the third year; anniversary,l25% of the loan principal amount shall be
called due. The remaining 75; is forgiven.
'
(4) Any sale or transfer after the third year anniversary would mean that
100% of the loan principal amount would be forgiven.
'
C. Penalties.1n theevent the forgivable loan recipients) fail to pay,lthe
principal, or a portion thereof, when due, the whole principal, amount of the
Tien shall become due and payable 'at the option of the lien holder, without
'
notice. The forgivable loan recipient(s) in case of suit thereon, agrees to
pay attorney's fees.
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' CDR 7661A _
PROMISSORY NOTE
REHABILITATION FORGIVABLE LOAN
' DATE: PLACE:
CASE NUMBER:
1
For value received, the undersigned jointly and severally promise(s),to pay to she
' -order of the City of. Iowa City acting by and through the Director, Department of
Housing and Inspection Services the sum of
The full Principal on this Note is payable on the transfer of the property prior
' to the first year anniversary of, this Note. Transfer of the property prior to the
second year anniversary of this Note would require 50% of the Principal to be called
due. The remaining 50%,would be forgiven. ;Transfer of the property prior to the
third year anniversary of this Note would require 25% of the Principal to be called
due. The remaining 75%'shall be^forgiven. After the third anniversary date of this
" 1i Note,; 100% of the Principal will be forgiven.
1' Should the property be damaged to such an extent that the amount of money stated
in this promissory note exceed the value of the dwelling located upon the premises,
the note shall be forgiven. Damages resulting from wanton or reckless conduct on
part of the borrower or with his/her consent shall not fall within the scope of this
proposal. Also any transfer resulting from the death or incapacitating illness of
one or more of she undersigned would mean 100% of, the Principal will be forgiven.
In the event the undersigned shall',fail to pay the Principal, or a portion thereof,
1 when due; the whole amount then unpaid shall become due and payable at the option
of the holder without notice. The' undersigned, in of suit hereon, agrees to
a pay attorney's fees. All'Endorsers agree to all of the provisions of this Note, and
zY' consent to the times of payment of'all or any part hereof.
In witness whereof, this Note has been duly executed by the undersigned,ion the
r 1 day of 19_
n
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' Sworn and subscribed to before me this day of 19
' Notary Public Ili,
in and for Johnson County, Iowa.
1 /CEiDED 7Si PROM U'
7-4 V HY ,THE LEGAL' DEPART;CEi1T
�
Housing Rehabilitation Program
City of Iowa City, Iowa
'
DISCLOSURE STATEMENT
Application Number:
Applicant Name and Address:
i
Lien for Property,at:
'
Due Dates fand Payments:
'
(1) If sale or transfer before I then full amount which
'
is $ becomes due an pays le.
(2) If sale or transfer before but after
then 50% which is $ becomes due and payable.
'
(3) If sale or transfer before but after
theni;25% which is $ ecomes due and pays le.
j.
(4) If sale or transfer,after then no payment is
'
required and'the.lien is cancelie .
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Creditor:. City of Iowa City, utilizing Community Development Block Grant. funds from
F
the U.S. Department of 'Housing and Urban Development.
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NO INTEREST RATE TO BE CHARGED ON THIS NOTE.
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I! acknowledge receipt of a copy of this statement.
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Date
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Witness Signature (s) of Borrower (s
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�BECEIVED & APPROVED
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tRehabilitation Financing Handbook
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' CIWy1TR 7. LIMITATIONS ON MIOUNl' 01: llffi* LOAN
' SECI10N 2. RJ:11AB I LOAN
GENERAL. This section sets forth the eligibility requirements for applicants of
the City of Iowa City Rehabilitation Principal Loan program, hereinafter referred
to'as'a REHAB I Loan.
' 2. MAXIMUM REHAB I LOAN ON RESIDENTIAL PROPERTY. The maximum loan on residential
property shall be,the lowest amount eteimined using the following three
` criteria, regardless of whether the loan is secured or unsecured,
' a. The actual, approved construction costs.
b. $17,400 per dwelling unit.
c. IAn amount which when added to any outstanding indebtedness related to the
' property, creates,:a total outstanding indebtedness which does not exceed:
97 percent; of the sum of as -is value of the°,property and
estimated rehabilitation costs up to and including,$25,000
? ' , 90 percent of the next $10,000, and 80 percent of any balance
of the sum that exceeds $35,000.
3. APPLICANT ELIGIBILITYi To be considered for a REHAB I Loan, the, applicant must
Fompl_yjwith the following criteria:
a. Be the owner occupant of an all residential structure containing not 'i.
' more than two (2) dwelling units and located within the Rehabilitation Area
currently designated for 'service by the City Council.
' b. Havea maximum adjusted gross income (see Chapter 22) not in excess of the
following:
$10,000 for a 1 person household
$11,375 for a 2 person household
,•.
$12,750 for a 3 Person household
$14,250 for a 4 person household
t $15,125 for a 5 person household
$16,000 'fora 6 person household
$16,875 fora 7 person household
$17,875 for an 8+ person household
c. Have liquid assets which do not exceed those established for elderly or
handicapped persons or shown on the following table ',(page 7-5) which is
1
based on family size and income.
(1) Conversion of Assets: When an applicant has assets which are in
_'• excess of the maximum liquid asset level, the excess amount may
reduced by, applying them toward; the actual cost of the rehabilita
tion of the property. The excess assets must be escrowed to the'
City, of Iowa City to pay for the rehabilitation.
7-6
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Rehabilitation Financing Handbook
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TABLE OF MAXIN1UI ASSET LEVELS
AlfunN
I'...,p sl:e
4 M,!
In9me
1
1
J
1!
6
4
S,hq m
10,000
I5, 000
:U, OOtl
:O,Mq
OO,000
:O,oh,
:D,OOJ
:O,OM,
5,199.99
'
S. SCO t9
9,300
IS.000
}0,000
:0.000
}0,000
:0,000
:0.000
:0,000
S. 9V9.99
'.6,000 1.
9.000
11,:50
}0,000
:0,0W
:0,000
:D,OPO
:0,000.
:0,000
6,199.99
6,500 to
6,SOo
13,500'
19.000
20,0001.
:0,000
.D.00o
:0,000.
20,000
6,999.99
7,,000 to
.1,000
ISdSD
19,,000
206000
20,000
:D,000
:0,000
40,000
2.199.99
2,300 to
].S00
1},Doo
I. 17,000
19.000
:0,000
:01000
:0,000
20,000
2, 999.99
5,000 to
2.000
11.250
16,000
16.,000
19,000
}0,000.
20,000
:0,000
1.199.91
1500 t6
6.500'
10,500'15,000
12,000
16,000
'19,000
20,000
40,000
1,999.99
9,000 to
6.000
9,}50
11,000
16,000
17,00D
13,000
19,000
20.000
9;09.99
9.500 to
�S.300
9,000
13,000
.15,000
16,000
12,00D
18.000
19.0Do
9.999.99
-..
101000 to
S.ODD
'61250
12.000
11,000
15.000
16,002
17,000'
11,000
10,199.99
lo,soo to
S.SOD
11,000
13, 000
11,000
ls,000
16,000
'12,000
10.909.99
11,000 to
7.5"
10.000
1210DO
13,000
11,000
IS.00D
16,000
11199.99
II,$Do to
10,000
13,000.
.12.000 1,
13,000
11.000
Is.wo
11,999,99
1},DOD 10
10,000
ID.oOo
II,OOo
72,000
10,000
16.000
12,199.99
22,$00 to
ID,OOo
70,000
10,000
a(,00D
1},000
13,000
12,929.99
11,m to
10,000
10,000
11,000'
12,000
13.199.9+
13,500 to
,10,000
10,000.
II,ow
33,999.99
11.000 to
I0, 000
10,000
11,Iv.n
11, s0o to
IO,0D0
11.999.99
'
15,000 to10,000
X11
15,199.99
Is,5o0 to
10,000
13,93D.99
-r
16,000 a
10,000
16,159.99
_
16,soo to
10,000
16,999.99
12,000 to
10,000
12, 09.09
.12,560 1.
10,Oo0
13,0)199
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'
6.
All REHAB I Loan promissory notes shall be signed and duly recorded.
In addition, all loans in excess of $4,950 shall be secured by a mortgage, duly
'
recorded, naming the City of Iowa City through the Department of Housing and
Inspection Services as Mortgagee.
'
7.
TERMS AND CONDITIONS:
a. Terms and Conditions.
'
The Maximum term of the REHAB I Loan shall be 1S years, and it shall bear
no interest.
'
b. Assignability.
The REHAB I Loan is not assignable and shall be due upon sale or transfer
property by use of a 4
of the property.and contract shall
1
,''Selling,the
constitute a transfer of property and the Rehab I loan shall'be payable in
full at that time.
c. Repayment and Debt Service!
(1) 'Payments shall be made in 180 consecutive monthly installments to a
'
k.
local lending institution designated by the City. Each monthly payment
shall be for'1/180 of the original loan amount plus a monthly debt
service charge.
'
(2) The`RHHAB L loan may be retired in a period of less than 15 years without
`
penalties.
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d. ,;Service and Closing Costs.
The closing costs for a REIiA6 I Loan may include the following:
(1), Fees for establishing debt service account.
Tt
(2), Appraisal fees.
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ractin g fees.
!(3) Title search and,abstracting
ss
(4) Recording fees.
is
(5)� Legal fees.,'
e. Delinquency and Late Payment Penalty.
A late payment .charge shall accrue on any. amounts delinquent by one month
`
1l or more. The amount will be specified at the loan'closing and if altered,
the mortgagor will be notified 60 days prior to the effective date.
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Rehabilitation Financing Handbook
5/77
CIW'TER 9. PROCESSING AND SUBMISSIONS I- R1JiA81LITATION GRANT
t 1. GENERAL. This chapter contains an outline of the functions to be performed by the
Staff in connection with a rehabilitation grant, and sets forth the policies and
procedures to be followed by the Staff in preparing, process, and approving an
' application for a rehabilitation grant, and in canceling an approved rehabilitation
grant.
' 2. OUTLINE OF STAFF FUNCTIONS. Listed below are the functions to be performed by
the Staff in connection with a rehabilitation grant. As applicable to each of
the !listed functions, cross-references are given to other chapters that contain
the, substantive requirements with respect to that function. Items a., b., c., and
d. are required, regardless of the source of funds to be used to finance the cost
of rehabilitation. " Items e. :through z.', apply to a rehabilitation grant or a
rehabilitation grant supplemented by other than a rehabilitation loan. Procedures
for a rehabilitation grant supplemented by a rehabilitation loan are included in
' Chapter 10.
' Functions Cross -Reference
1' a. Interview and advise applicant on the general
rehabilitation objectives of the project,, and
the purpose and meaning of the Rehabilitation
Standards.
b. Advise the applicant on the availability and
'^^ benefits of a rehabilitation grant and other City
and private programs and iresources <for financing
h .- rehabilitation.
C . Inspect the property. Chapter 18
Prepare.a work write-up and cost estimate of the
�., rehabilitation work needed to meet.the Rehabili-
tation Standards. Chapter 18
e. Determine eligibility of the applicant for a
rehabilitation grant. Chapter 3
' Evidence that ownership of the property has
3„ b,een,;verified and shall be,retained',',in the
,,property -files. ,This shall include the
i
citation from the land records or other
r official record from which the verification
was made.
yl
' If applicant is occupant -purchaser under a land
sales contract, obtain a documentation to
^' support eligibility. Chapter 3
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Rehabilitation Financing Handbook
9/77
1
Functions
Cross -Re erence
f.:
Verify applicant's income, housing expense
'
and assets.
Chapter 0
g.
Determine that work items in work write-ups
'
conform to purposes for which rehabilitation
grant can be used.
Chapter 5
Establish of
h.
amount grant applicant may receive.
Chapter 6
i.
Be assured that as a result of the rehabilitation
grant, the property will be rehabilitated at a
'
minimum to meet the Rehabilitation Standards.
j.
if the applicant is eligible for, and needs a
1
rehabilitation loan, assist him in filing the
application.
Chapter 10
k.
Advise the applicant of the conditions under
,
Which a rehabilitation grant is made.
Chapter 13
1.
Prepare construction contract documents and
'
obtain contractors proposals for rehabilitation
work and review proposals received.
Chapter 19
M;
1'repare.Form CDR -7660, Rehabilitation Grant,
(originaiand l copy) and S; obtainapplicant's'
signature:
'
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Approve Form CDR -7660, if all requirements are met.
o'.
Assign application number and enter on approved
Form CDR -7660 and all related documents.
Chapter 16
P.
Prepare promissary note for loan lien if
y•.I.�
applicable. Obtain legal opinion and recordation.
.,
q.
Prepare contracts and CDR -7660 for signature(s),
f
'obtain applicant'sendorsement, and request'
'
monies for grant in rehabilitation escrow
account.
Chapter 14
'
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Assist applicant in execution of construction
contract, and deliver to selected contractor.
Chapter 19
s.
Assist applicant in issuing` proceed', order for
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construction work.
Inspect rehabilitation as it progresses.
Chapter 20
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5/77
Functions Croas-Reference
u. Make final inspection of completed
rehabilitation work. Chapter 20
' v. 'Issue Form CDR -7645. Chapter 20
w. Obtain from contractorguarantee' of work,
'
manufacturers' and suppliers' warranties, and
release of liens from general contractor, sub-
contractors, and suppliers prior' to final payment
for rehabilitation work.
i
x.Prepare Statement of Disposition of Funds.
' y. Closeout rehabilitation escrow. Chapter 14
z. Make follow-up inspection: Chapter 20
' 3. PROCESSING AND APPROVAL OF GRANT APPLICATION. Processing by the Staff of
L
application, or a rehabilitation grant consists of the completion of the
' functions listed below, items a.:through c., assembly intone file of the, Form
CDR -7660 and all supporting documents, and the review of the file to determine
approval.
' a. Preparation of Form. The Rehabilitation Finance Specialist shall prepare
form CD
R-7660 (original and 1 copy) for the applicant, based on information
furnished by the `applicant and obtained by the Rehabilitation Finance Special
ist from"other sources, as documented in the file. 'Every space provided
for an entry on Form CDR -7660 shall be completed. Entries of money amounts
shallbemade rounded to the nearest dollar.) If no money is%involved for an
entry fora particular application, the entry shall be "none" Review and
appproval by the`Director;of Housing and Inspection Services of Form CDR -7660
shall be based on the form completed in this manner..
b. AP2McantaPurahaeinqUnder a.Land Sale Contract. If an application' for
a rehabilitation grant is with respect to an occupant -vendee under a land
sales''contract or similar' arrangement,, the file shall contain documentation
to support the requirements in Chapter 3.
II c. :Approval of Application for Grant. An authorized Rehabilitation Specialist
shall approve a Form CDR -7660 by obtaining the applicant's signature in
block I, and by signing-block.J, on both the original and the copy of the
! form. If the rehabilitation grant alone is sufficient to rehabilitate the
{ property,; or if ;the rehabilitation grant is to be supplemented by funds
other than a rehabilitation loan and the Rehabilitation Finance Specialist
is assured that the property will be rehabilitated to meet the Rehabilitation'
Standards (see Chapter',4),;'the rehabilitation grant is considered to be
' approved, and the Rehabilitation Finance Specialist maynotify the applicant,
and proceed with the remainder of the functions for which it is responsible
in order to complete the rehabilitation work.
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Rehabilitation Financing Ha ndbook
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(1) If a rehabilitation rant is to be su lemented b a rehabilitation
loan, the grants al not a consideredapprove
unu a ter approval by
'
tFe lender of the application for a rehabilitation
loan approval shall
consist of a letter of commitnent (either from the City or private
sources). In this case, the Rehabilitation Finance Specialist shall not
advise the applicant concerning approval of the rehabilitation grant,
'
nor proceed with any of the rehabilitation work, until the reservation
of loan funds has been 'received.
(2) If the Rehabilitation Finance S ecialist determines that a Form CDIZ-7660
'
cannot e approved a written statement of the reasons or t o
etermination shall be put in the application file by the Rehabilitation
Finance Specialist. An application number shall not be assigned by the''
'
Rehabilitation Finance Specialist to a Form CDR -7660 it does not
approve.
'llte
,
d. Rehabilitation Finance Specialist shall 'complete CDR -766T "Promissory
Note for Rehabilitation Grant" original plus two and shall transmit
original plus one copy to City Attorney's office for opinion.'
Attorney shall render a written legal opinion regarding the adequacy of
the Promissory note, shall record same and'forward'the'two copies of his
opinion plus the copies of the promissory note to the Rehabilitation Finance
'
Specialist.
The Rehabilitation.Finance Specialist shall retain one copy of the opinion
-promissory
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plus a copy of the . note.inthe.. applicant's file. The other. copy
of the promissory note and the legal opinion shall be forwarded to the grantee.
e. Required -Submissions. For an application for a rehabilitation grant, that is
'
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- not to ,be supplemented; by a rehabilitation loan, the Rehabilitation Finance
Specialist promptly shall submit the completed approved copy of Form CDR -7660
to:
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Director. of Housing and InspectionServices
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IF F
'the original o
g f the completed' approved Irornt CDR -7660 shall be retained by the
Rehabilitation Finance Specialist with the supporting documentation in the
application file. With the exception of the, submission of Form CDR -7645 to
the above' address ,at the'time of the completion of'.the rehabilitation work,
there are no other required submissions for a rehabilitation grant that is
not supplemented by a rehabilitation loan.
`
For an applicatiomdor a rehabilitation grant that is to be supplemented by
a'loan, the completed original and the copy of Form CDR -7660 shall accompany
'
the Form CDR -,7630 submitted by the Rehabilitation Finance Specialist to the
Lender (see Chapter 10).
4.
GRANT CANCELLATION. An approved rehabilitation grant may need to be cancelled
'
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because the applicant has requested cancellation or is unwilling or unable to
proceed with the rehabilitation work, or for other reasons.
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' CHAPTER 10. PROCESSING AND SUBMISSIONS FOR A REHABILITATION LOAN
1. REHABILITATION LOAN ON RESIDENTIAL PROPERTY. The material under this heading is
in connection with a rehabilitation loan on residential property that by itself
'
or in conjunction with funds',to be provided by the applicant other than a
rehabilitation grant; is sufficient to accomplish the required rehabilitation.
a. Outline of Rehabilitatien Staff Functions. Listed below are the functions
to be performed by t e Re bihtation Staff for rehabilitation loan on a
' residential property. As applicable to each of the listed functions, cross-
references are given to other chapters that contain the substantive requirements
' for that function. Regardless of the sources of funds to rehabilitate a
property; the Rehabilitation Staff shall assist the property owner by per-
forming functions:(1) through (7)"; listed below:
' Function Cross -Reference
(1) Interview and advise ,the property owner
" on the general rehabilitationobjectivesfor the
project area, the purposes and meaning of the i
i Rehabilitation Standards.
I' (2) Advise the property owner on the availability
and+benefits of a rehabilitati.on:,loan, and on
4 other Federal and private programs and resources
' for financing rehabilitation.
(3) Inspect the property." Chapter 18
(4) Prepare a work write-up and cost estimate
t
of the rehabilitation work. Chapter 18
' (5) Financial interview by Rehabilitation Finance
Specialist to':determine eligibility of the
applicant for a rehabilitation loan. - Chapter 3, 7
�
6 Determine that .items in the work write-up
conform to, purposes for which a rehabilitation
' loan may be used. Chapter 5
(7) Advise applicant concerning the conditions
under which a rehabilitation loan is made. Chapter 13
re
(8) Obtain following information with respect
to the applicant for all residential Form CDR -7639
properties: '- (or equivalent)
(a) Verification of Mortgage or Deed of Trust
from each holder of lien secured by the `
' property.
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5/77
'report 'from
'
(U) Credit recognized credit
bureau.
(c) Verification ofemployment.
Form CDR -7633
(or equivalent)
(d) Statement of verification of other
'
earnings.
(e), Verification of deposits.
Form CDR -7634
(or equivalent)
(9)
Make,a preliminary evaluation of ability of
applicant to repay indicated loan amount.
'
(10)
Final consultation with applicant on preliminary
work'iurite-up and cost estimate to reach agreement
,
on work to be done within applicants ability to
repay.
Chapter 18
'
(11)
Prepare contract specifications.
Chapter 18
(12)
Request as -is appraisal.
'
(13)
Let construction bids,t assist applicant in
•
selection of acceptable contractors.
Chapter 19
t
(14)
Take "before" pictures'.
(15)
Assign CDR loan number, and: set up separate
'
file for each case.
Chapter 16
(16)
Deliver case to Director for submission to
Rehabilitation Review Board for conditional
commitment.{?Include the following papers and/or
forms
I,IAs
(a) is'appraisal.
(b) ,Two (2) copies of accepted bid.
(c) "Before'.' pictures.
(d) Copy of,Code violation letter and cost
' r
estimate.
(17)
Order abstract update and legal opinion,
if applicable.
Chapter 11
(18)
Complete CDR -7630 or CDR -7632.
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(19) Determine that through the rehabilitation loan
the property will conform to Housing Rehabilitation
Standards requirements'. If additional financing
is required, assist applicant in obtaining the
needed funds.
(20) Deliverto; Director for submission to Rehabili-
tation Review Board for firm commitment (loan
approval). Include the following as applicable:
'
CDR -7630 CDR
(a) or -7632.
'
(b) Credit Report (original).
(c)' Verification of Deposit(s) (original).
5
(d) Verification of employment(s) (original).
(e) Verification of Income from Other
Sources '(original).
%.
(f); Verification(s) of Mortgage or Deed of
Trust (original).
y
(g) Copy of 'Deed.
(h) Current balance sheet, operating statement
J and/or most recent copy of tax returns if
vt
applicant is self employed.
(i) ; Attorney's opinions,
(21) When the firm commitment has been received by
'
the, Finance Specialist advise' applicant and loan
,.servicing.
agency,', and set date for .the settlement
a
of .the loan.
(22) Along with 20(a) through (i) include for the -
retention at Losing, the following:
(a) 'Hazard insurance' policy on property.
(b); Copy of payment schedule breakdown.
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(c) Copy of agreement on REHAB I loan.
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(d) Debtor's life insurance policy, if
ra
applicable.
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(24)
Prepare "Request for Loan Account," and hold
'
in file until date certain.
(2S) On date certain, P uick,theapplicant, or
Ip PP ,
meet at designated loan; closing location
and assist in getting all necessary papers
signed.
(a) Have applicant(s) sign:
1. All copies of construction contract.
2. Proceed order.
3. Promissory note or mortgage.
'
4' CDR-7660, if :REHAB I'loan to be
supplemented ,bylforgivable loan and/or grant.
"
(b), Explain to the borrower the amount of
'
their monthly payments ,and when the first
and all subsequent, payments are due.
,
(c) Staff will explain their responsibility in
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recording all security instruments.
1
d Continue abstract and return to the City
ji
Attorney for final opinion.
(e) Record promissory note or mortgage at Courthouse.
;
f -_ Deposit borrower's supplemental funds in escrow account.
O De P
Borrower will be given receipt with xerox copy of
t
check.
j
(26)
Assure compliance with equal employment
opportunity requirements. This is a continuing
,
.`
i
responsibility until the work is completed. Chapter '13 and 19
(27)
Inspect the rehabilitation work and make
progress payments; if provided in construction
contract. Chapters 14, 19, and 20
(28)
Make final inspection of completed rehabilitation
work. Chapter 20
(29)
Issue Form CDR-7645, "Certificate of Final
Inspection." Chapter 20
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(30)Take
"after" pictures.'
(31)
Obtain from contractor, guarantee of work,
manufacturers': and suppliers'.warranties, and
,
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' release of liens from the general contractor,
subcontractors and suppliers prior to final pay-
ment for rehabilitation work.
(32) Request final payment to contractor for completed
rehabilitation work. Chapter 14 and 20
1 (33) Place in the file, the following papers
and/or forms:
' (a)> Copy of signed promissory note, if applicable.
' (b) Copy of signed and recorded mortgage, if
applicable.
' (c) Copy of, firm commitment signed by authorized
j City employee.
(d); Copy of City's Request for Loan Account,
CDR -7636.
= (34) Make follow-up inspection of rehabilitation'
work.',
:Chapter 20
' , b. Disapproval of Loan Application. Disapproval by the Rehabilitation Review
Board tor any loan application constitutes'a formal turn down and the
Rehab Finance Specialist shall advise the applicant accordingly and properly
1 ' document the file. In the case of special'lor extenuating circumstances,
the Rehab Financial Specialist may ask the,I,Review Board to re-examine an
application along with the documentation necessary to support the request
;for reconsideration.
c. A Zieant Caneels Loan A lieation. In the event the applicant chooses to
cancel a loan application prior to Date certain,'the Financial Specialist
shall prepare'CDR-7630C and obtain the applicant(s) signature(s). If the
applicant(s) refuses to sign, the Finance Specialist shall document this
refusal by so; indicating on the CDR -7630C by a statement signed by the
' Financial Specialist.
j 2.I REHABILITATION LOAN SUPPLEMENTED BY A REHABILITATION GRANT. The material under.
this ;heading dis:in connection with a re llitation loan on residential, property
supplemented by a rehabilitation grant.'
a. Outline of Rehabilitation Staa Function. All of the functions listed under
paragraph 1., items 1 t roug 36 -s ll appply under this section. In
addition, one more Form, CDR -7660 (original plus 10, shall be completed. The
' CDR -7660 shall be retained in the applicant's file until such time as the loan
application is approved by the, Rehabilitation Review Board. Upon loan
approval, one signed copy.of CDR -.7660 shall be given to the grant/loan
applicant and one signed copy shall be retained for the case record.;
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b. Assurance of Supplemental Financi?yd. if approval of the loan and grant is
depen ent upon supplemental I inancn ng, the Financial Specialist shall be
assured of the provision of those funds (see Chapter 4) prior to recommending
approval of the loan.
'
c. Disapproval by Rehabilitation Review Board. Tf the Rehabilitation Review
Board disapproves the loan application, the Financial Specialist shall write
,
on the original copy of CDR -7660 "cancelled" and retain same in the
applicant's file.
d. Grant Only to be Approved. If a,grant is to be approved after the disapproval,
- of a loan request, a new CDR -7660 shall be prepared and the application
shall be processed in accordance with Chapter 9.
'
e. .A lieant Cancels Loan/Grant A Licaticn. In the event that the applicant
c noses to cancel t e loan grant application prior to the signing of the
'finallpapers, the Finance Specialist shall prepare CDR -76300 and obtain the
'
applicant(s) signature(s).1
3. DOCUMENTATIONFOR LOAN ON RESIDENTIAL PROPERTY. This material sets forth required,
'
documentation in conjunction with an application recommended for approval by
the FinancialSpecialistfor a lrehabilitation loan on residential property. The
forms; and other documentation to be included with the application by the Financial)
} Specialist to the Rehabilitation Review Board are listed in paragraph 1.
' 'I
Instructions concerning some of: the documents listed are as..follows:
I
a. Application Form..
'
(1) If a rehabilitation loan is to be' supplemented with a rehabilitation
grant, CDR -7660 will also be completed.
'
(2) Each applicant shall be given a copy of Form CDR -7631.
b. Verification of E7nployment:'I Include a completed CDR -7633 "Request for
:'." )- 12 months.
Verification of Employment", each position held withinthe last
' Verifications of employment' must be completed on all persons whose signa-
'on
tures will 'appear the promissory note and mortgage.
,I
c. Verification of Deposit. CllR 7634 must be completed for each checking and/or
savings account listed by the applicant(s).
' Id. Veri ication oflIncome romllOther Sources. Verify all other income received
y the applicant(s), such as pensions, social security, ADC, disability bene-
fits,"rentals, income from care of foster children, interest on investments,
,
etc. :"If the principal source of income of the applicant(s) is from his own
business, include a currently dated balance sheet and operating statement,
ora copy of his most recent tax return.
'
e. Verification Mortgage or Deed of Trust. Complete CDR -7639 for each 'out -
Stan ing mortgage or lam sales contract on all properties beingpurchased'
b the applicant(s).
Y
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1
F.
Credit Data.
'
(1) Obtain a written credit report from the Credit Bureau.
g.
Conetruction'Contract Document. See Chapter 19.
1
h.
Ownership Data. ;The Rehabilitation Financial Specialist shall make a
preliminary informal determination of ownership. The citation from the land
records or other`official:records used in the verification shall be retained
'
in the file. This informal verification shall be followed, at the appropri-
ate time, by a formal verification in the form of a written title search
and the continuation of the abstract.
'
i.
Rehabilitation Loan Involvi a Land Sales Contract. All land sales' contracts
angst be refinanced or retire a ore an applicant can apply for a Rehab I '
-
loan.
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' WAVIER 11. LOAN SH MEM
1. GENERAL. This chapter sets forth the staff responsibilities with respect to a
City of Iowa City rehabilitation loan for: (a) preparing for loan', settlement,
(b)completing loan 'settlement; and (c) carrying out past settlement activities.
' 2. PREPARING FOR LOAN SETTLDIENT.The following actions shall be taken in pre-
paration for loan settlement:
' a. Establish a date certain for loan settlement that allows a minimum of 15 days
for processing.
b. Prepare Form COR -6236 for a'loan encumbrance to be dated the date certain.
c. After the loan encumbrance is requested, the Ainancial Specialist shall
promptly take -the following actions:
' (1) Prepare a promissory note (original) in accordance with the form of
promissory.note approved.by;the Cit Attorne 's 'Office.
Y,. Y
' (2) If the loan is to be so secured, prepare a mortgage (original) in!
accordance with the form of mortgage approved by the City Attorney's
Office for Use 'in this,Ilousing,Rehabilitation program.
' (a) ;For a loanunder $5,000, recheckthe ownership information in
4 the case file.
(b) For a loan of $5,000 or more, arrange for updating the title
report to the date certain.
' . (3) Prepare a proceed order to be signed by the borrower at settlement.
For a'secured loan, the executed proceed order shall be retained by
the Finance Specialist for five working days from the'date of signing
in order to 'give the 'borrower time to exercise his rights of rescission
' under the Truth in Lending Act. (SeeChapter23)
(4) Instruct the borrower to obtain:
' (a) Original and memorandum copy of insurance policies for Eire and
extended coverage that provides coverage in accordance with the
local coinsurance clause percentage of the value of the property,
or an insurance binder or other 'evidence of insurance.
(b) Original or certified copy of receipt for payment of initial or
current insurance premium,: whichever is applicable.
(5) Make arrangements for loan settlement on the date certain.
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3. DELAY IN LOAN SETTLEMENT. Loan settlement shall be effected on the established
settlement ate,,provi ed that the approved Form CDR -6236 and the loan check
have been received from the Finance Department. If for any reason loan settle-
'
ment cannot be accomplished on the established date, it shall be accomplished
as 'soon thereafter as possible. Such later settlement shall, with the written
consent of ,the borrower, be effected, as of the originally established settlement
'
date. In the absence of that written consent, the loan check must he returned
to the Finance Department. 7lie Finance Specialist shall then set a new settle-
ment date and shall prepare and submit to the Finance Department a new Form
'
CDR -6236 (original and one copy) with the new date certain specified thereon.
4. COMPLETING LOAN SETTLEMENT. The Finance Specialist shall proceed with loan
settlement on the date certain as follows:
'
a. Review the approved Form CDR -6236 with the borrower. If applicable, emphasize
that the borrower mustinclude'' not only in his/her first monthly payment, but
'
also: in his/her subsequent monthly payments, an amount for accrued escrow
expense account items.
'
b. Secure the borrower's signature in block M of each of the three copies of
Form CDR -6236, and witness the signature.
c. 'Secure the borrower's signature on the original promissory note.
'
d. If applicable, secure the borrower's signature on the original mortgage or
deed of trust.
'
e. If necessary, review witl the borrower the copy of Form CDR -7631, which was
previously given to him before he signed the application form CDR -7630.
'
I' f. Obtain opinion of City Attorney (original) -concerning the legality and
sufficiency of the executed promissory note and, if any, the mortgage or deed
„
Of trust. The City Attorney shall participate in any proceedings as maybe
,
necessary to assure the legal validity of the loan application.
g. Obtain from the borrower the required fire and extended coverage insurance
'
;,. policies',and premium payment receipts.
'I
h. "Obtain from the borrower evidence of current tax and special assessment
payments',in the form of most recent receipts.
'
i. :Secure the borrower!s endorsement on the loan check.
1�
J. Advise the borrowerlwith re
J and to: 8
(1) Name of the loan servicer to,„whom monthly payment checks shall be
'
made, payable; where to send the first and subsequent monthly
payments, and the obligation to remit the first monthly payment
even though the borrower may'not receive a payment notice.
(2) Need to make all monthly payments on the date due to avoid legal
action.
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APPENDIX 1. GUIDV iuui 01: TiUNW 7ALLErJT.R FOR
TRANSFER OP RLIIABILITA'1'ION LOANS TO SE VICE AGENT
'
Gentlemen:
The following City of Iowa City rehabilitation loans have been settled and are
being transferred to you for loan servicing in accordance with the agreement between
'
the City of Iowa City and your lending' institution. For each loan listed below,
=there are enclosed, as applicable; checks to cover accrued escrow expense account
items for the following loans:
The first monthly payment for each loan listed below is 'due 19
'subsequent
and the 'amount 'of the first monthly payment and monthly payments toIh
lois indicated on thecorrespondingForm CDR -6236.
an
The following loans are covered by this transmittal:
Loan Number Name of Borrower Amount of Loan Type of Loan. Security
'
;.
ignature o. inancia pecia ist
.
'
jr (title)
a
en
I,:
Enclosures
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CIW'TER 13. TERMS AND CONDITION'S UNDER k911C11 RL-71A11ILITATI0N
GRAM'S AND LOANS ARE MADE
1. GENERAL. This chapter sets forth City requirements with respect to terms and
conditions :to which an applicant must agree in order to obtain a rehabilitation
grant and/or loan.
2. RENABTLITATIO.N GRANT CONDITIONS. The specific terms and conditions with respect
'
to a rehabilitation grant are incorporated in Form CDR -7660. The applicant
shall agree, and by signing Foam CDR -7660 does agree to:
a. Civil Rini hits. Comply with all City requirements with respect to Title VI of
t e Ch ivil Rights Act of 1964, to not discriminate upon the basis of race,
color, creed, sex, or national origin in sale, lease, rental, use, or
occupancy of the subject property. -
'
b. Cancellation of Grmtt. Return of the grant proceeds with no right, interest
or claim in ti— a Beds, if the grant is canceled before the rehabilitation
'
work is started.
c. Use of Proceeds. Use of grant proceeds only to pay for costs_of services and
materialsnecessary to carry out the rehabilitation work for which the grant
'
wi!11 be approved. '.
d. Completion of Work.' Assure that the rehabilitation work shall be carried out
'
„promptly and efficiently, through written contract let with the prioi con-
currence of the City. L
I
e. Ineli ible Contractors. Not award any contract for rehabilitation work to be
1
,
-,' paid or in w ole or in part with the proceeds of the grant, to any contractor-`
who, at the time,.is ineligiblelunder theprovisions''of any applicable
regulations issued by the, building official, ',City of Iowa City to
'
receive an award of'such contract."
rI, I
f. inspect�zon. Inspection by the City or its designee of the property, the
rehabilitation work and all :contracts, materials, equipment, payrolls, and
-conditions "of employment pertaining to the work.
g. Records. Keep such,records as may be required by the City with respect
.',
- to tie rehabilitation work.
h. Interest of Certain'FederaZ Officials. Not permit any member, or Delegate
IT
to t e Congress o e United States, and no Resident Commissioner, to share
in any proceeds of the grant, or in any benefit arising from the same.
i. Bonus Cormniasion or Fee. - Not pay any bonus, commission, or fee for the pur
pose of obtaining the City approval of the grant application, or any, other
" approval or concurrence required by the City or its designee, to complete
1
the rehabilitation work, financed in whole or; in part with the rehabilitation
grant.
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j.'Interest of the City. , Allow no munber of the governing body of the City in
wfTic t e property to be rehabilitated is situated, and no other City official
' of the locality who exercises any functions or responsibilities in connection
"with, the administration of the federally assisted project or program, and no
other officer or employee of the City who exercises such functions or
responsibilities, to have any direct interest in the proceeds
' of. this ''grant, or in any contract entered into by the applicant for the
performance of work financed in whole or in part with the proceeds of the
rehabilitation grant.
' 3. REHABILITATION LOAN CONDITIONS. The specific terms and conditions with respect'
to rehabilitation loan to a residential property are incorporated in Form CDR-7631,
the mortgage or other security instruments as applicable, and the promissory note.
a. Cancellation Provision. Under paragraph 3 of _Form CDR-7631, concerning the
City's rig t;to cancel a loan if. within 60 days ,from the note's execution the
' rehabilitation,work has not commenced, the City may extend'ilre 60-day period
by not more than 30 days,:.due to unforseen and extenuating circumstances.
b. Additional Extension. The Rehabilitation.Financial Specialist shall not grant'
any further extensions of time without prior written concurrence by the
Di
rector, of Housing and, Inspections. If the loan is to be canceled
because of failure to begin anticipated rehabilitation work within the allowed-
„'. period of; time, the Rehabilitation FinancialSpecialist shall' initiate 'can-
cellation in accordance with'the he procedures in Chapter 10.
' 4. INTEREST RATE. 2The interest rate to the borrower for a rehabilitation loan shall
? ee at c established by the City Council Presently no interest is charged.
S. TERM OF LOAN.' The maximum term for a'Ciiy rehabilitation loan shall be 15 years
''' ort ree- ourths of the remaining life, whichever is less'.
6. POINTS OF AGREEMENT. The applicant shall agree, as required by the related
ocim ents, to a i e by-,the following terms and conditions:
a.Civil Rights. Comply with all Federal requirements with respect to Title VI
of the Civil Rights Act of. 1964, to not discriminate upon the basis ofrace,
color, creed, sex, or national origin in sale, lease,:rental, use, or occupancy
of the subject` property.
b. Equal Employment Opportunity. Abide', by the provisions of Executive Order 11246
+' concerning equal employment opportunity.
i.
I'
c. Use of Proceeds. Use the loan proceeds only to pay for costs of services and
materials necessary to carry out the rehabilitation work for which: the loan
will be approved.
d. Completion of Work.', Assure that the rehabilitation work shall be carried out
promptly and efficiently through written contract.
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e.
IneliiL Contraetorn. Not award any contract for rehabilitation work to be
par or rn w ole or in part with the proceeds of the loan to any contractor,
who, at the time, is ineligible tinder the provision of any applicable regulations '
issued by the Secretary of labor to receive an award of such contract.
f.
Inspection. Permit inspection by the City or its designee of the property, the
renal bilitation work, and all contracts, materials, equipment, payrolls, and
'
conditions of employment pertaining to the work.
g.
Records. Keep such records as may be required by the City with respect to the
'
re a ilitation work.
h.
Interest of Certain Officials. Not permit any member of or Delegate to the
'
Congress o the Unit States, and no Resident Commissioner,.to share in any
proceeds of the loan, or to any benefit to arise from the same.
i.
Bonus Commission 'or Fee. Not pay any bonus, commission, or'fee for'the
purpose o o tarning e City's approval of ,the loan application, or any other
approval or concurrence required by'the City or its designee to complete the
'
!rehabilitation work, financed in whole or in part with the rehabilitation loan.
j.
!Interest of the City. Allow no member of the governing body of the City who
exercises any functions or responsibilities in connection with the administra-
tion of the concentrated rehabilitation project, and no other officer or
,
employee of the City who exercises such functions or responsibilities to have
any directinterest in the', proceeds of the rehabilitation loan,
or in any contract entered into by the applicant for the performance of work
'
_.,
financed, -;in whole or in part, witfi'the'„proceeds of the rehabilitation loan.
k!
Preservation of the Security. Maintain the property at the requirements of the
,
Rehabilitation Standards level and permit the City or its designee to inspect
thero erty during the term of the loan.
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- 1.
Hazard Insurance. Maintain hazard insurance''on the property with a loss payable
'
clause tote City,as applicable.
m.
Transfer of the Property. Not sell,' or transfer the property' without repaying
'
t eij entire, loan, unless prior written consent of the,City is sought and
received.
n.
Loan Security Requirements. Provide security for the loan, the form of a
mor tgage,,on the property; if applicable.
o.
Debtor's Insurance. Maintain debtor's
a life insurance policy in the amount
of the mortgage or lien as applicable.
PP ,
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CIIAPTPR 14. FUNDING OF INDIVIDUAL REHABILITATION GRAM'S AND
LOANS AND MANAGITILM• 01' R1i1AIiILI'1ymoh,' L'SCROW ACCOUM'
GENERAL. Ili is chapter sets forth policies for hording the individual rehabilita-
' tion 'grants, forgivable loans, and loans, and also the policies for City management
of rehabilitation funds.
2. FUNDING REHABILITATION GRANTS FORGIVABLE LOANS OR LOANS. When an application
�i or financial assistance has: been processed an approved (Chapters 9 and 10), the
program Finance Specialist shall enter the total amount of assistance in the
• program account ledger as encumbered monies. The Finance Specialist will be
certain that adequate funds are budgeted and uncommittedbefore processing
applications for grants or forgivable loans or loans. Program budgets will be
established annually by the City Council according to local, state and federal
funding available for ,a housing rehabilitation program.'.
'I
3. FUNDING REHABILITATION PROJECTS SUPPLEMENTED BY PRIVATE FUNDS. When supplemental
funds are utilized to complete a project, these funds are collected when the
' application is approved and ,deposited into the rehabilitation program account
awaiting disbursement." The Finance Specialist enters the fund receipt in the
program account ledger'. The'Iowa City',Department of Finance is responsible for
' depositing the check and reporting the transaction in the department computer
printout by case number and finance program.
4. .MANAGEMENT OF THE REHABILITATION GRANT" ' FORGIVABLE LDAN REHAB LOAN AND SUPPLE . MENTAL FUNDS ACCOUNT..;All,rehabilitation programf
un
d
s
'
private and public, shall
e deposited in a non-interest earning bank account. Accounting records will be
maintained to ep the; funds separate from other', City funds.
a.. Separate Case Numbers for Each Progrmn Participant. The Finance Specialist
will assign case num ers to each program applicant (Chapter 16). The account
t computer printout will log all credits and debts according to assigned case
numbers.
b. Disbursements of Rehabilitation Punds. Disbursements from rehabilitation
funds will be authorized by the Director of Housing and Inspection, Services.
A'check request will be prepared and submitted to the Department of Finance
properly', identifying the case number and expenditure: The Finance Specialist
'j. will maintain a file of all invoices and receipts. The, Department of
Finance will prepare a check, as directed, payable to the grantee/borrower
}. and the payee for the following purposes,'as maybe appropriate:
' (l)
Makeprogressand final payments for rehabilitation work. (See
Chapter 20).,, Progress payments are limited to 80% of the value of
' the work satisfactorily completed. (See Chapter 19)
r. (2) Pay ,for insurance binder, if required.
(3) Reimburse the City for advanced loan expenses. (See Chapter 5,'
Section 2)
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(4) 'Closeout individual rehabilitation accounts by appropriately disbursing
t
any unutilized funds remaining in the rehabilitation account.
Al check to return to the grantee/borrower unutilized funds in the rehabilita-
tion account shall be made payable to the grantee/borrower only.
c. Transmittal of Cheeks. The Finance Specialist shall secure the endorsement'
'
of the grantee borrower on checks payable to the grantee/borrower and the
payee. The 'Finance Specialist shall transmit the endorsed check to the payee.
Checks which include any amounts previously withheld from ,progress ,payments
shall be accompanied by an explanation of the computation.
,
d. Disputes. In the event a`dispute exists between the grantee/borrower and the
contractor with'.respect to the rehabilitation work, the Construction Specialist
shall take appropriate action in accordance with the provisions of the con-
struction contract :(See Chapter 19) to assure that the grantee/borrower is
satisfied before making any payment to the contractor.
,
e. Adjustment and Closeout of Rehab Case Account. Usually disbursements made for
the purposes stated under paragraph 4'will closeout the rehabilitation case
account.However„-;if unutilized funds remain in for individual rehabilitation
'
cases because the actual rehabilitation costs were less than anticipated or
if f for other reasons, the unutilized funds shall be disbursed as follows:.
,
(1) If all the funds were provided, by a rehabilitation grant, the unutilized
funds shall be disbursed to apply to the source, from which they came.
A check for funds to be applied to the rehabilitation grant shall be
'
made payableJointly to the grantee and to the Housing Rehabilitation
project account., In lieu of a check, other appropriate documentation
will clarify final disbursement of individual case funds.
i' (2) If all the funds were provided by a rehabilitation loan, the unutilized
funds shall be disbursed to apply to the principal amount of the loan.
A check to be applied to the rehabilitation loan amount shall be made
'
payable jointly to the borrower and the lender,' and transmitted with
instructions that the check shall be applied to the reduction of the
loan's principal balance.
,
3 If all theifunds were rovided 6 a combination rehabilitation rant and
O P Y
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loan, the unutilized funds shall be disbursed first to 'apply to the
principal amount
of the loan and then to the grant source.
,
(4) If the grant
and/or loan was supplemented by private funds, the unutilized
funds, up to the amount of the private contribution, "shall be disbursed
to the grantee and/or:;borrower;'at his option.
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' CIIAP111 15. PROITIM' APPRAISAL
' 1. CENLRAL. An appraisal is required for every property to be rehabilitated with
a, rehabilitation loan. The type of appraisal varies depending on whether the
loan involved is secured or unsecured.
a. For a rehabilitation loan on rsaidwhtiolproperty an as -is appraisal is
required. An as -is appraisal is de fined as the highest price which a
property; will bring,, if exposed for sale in the open market, allowing a
reasonable time to find a purchaser who buys with knowledge of all the uses
' to which it is adapted and for, which it is capable of being, used. The
value sought presupposes all cash to the seller, with the purchaser
financing the transaction by the most advantageous means and terms generally
' available throughout the entire city. The value must also take into con-
sideration the neighborhood upgrading expected as a result of the Urban
Renewal.Plan or local code enforcement program.
2. APPRAISAL FOR REHABILITATION LOAN. The Finance Specialist should make a preliminary
evaluation to ascertain that loan approval is likely, before requesting an
appraisal and making,a charge for an application fee. (See Chapter 16)
' a. 'Appraisal by City Staff• ,For loans under '$5,000 on residential, mixed-use
or nonresidential property, the appraisal 'shall be made whenever possible
by City staff.
(1) The appraisal information shall be recorded on Form CDR -7632, completed
in its entirety and signed by an authorized member,of-the staff'. This
i action willco firm the City's acceptance of and concurrence in the
'n YP
report. The completed Form CDR-7632'shall 'be retained in the,, c
file.. The estimates of value, remainingleconomic life,and age of
structure shall be entered in the spaces provided on Form CDR -7630.
b. Appraisal by Area office. For loans of $5,000 or more, the Finance' Specialist
shall obtain an appraisal from the appropriate Area FHA insuring Office.
' t (1) Residential Property., For residential property,lthe Financial
Specialist shall request the appraisal by transmitting FHA Form 2800
to. the Area FHA .insuring .Office. The, MA Form 2800 transmitted to the
Area FHA insuring Office must be accompanied by Form HUD -6242, pages
2'and 3. The Area FHA insuring Office will make the requested
i' appraisal and return the completed ,FHA Form 2800 to the City. However,
if the'Fonn FHA 28001or 2013-R is not accompanied by pages 2 and 3 of
r Form
HUD -6242, the Area Office will return
it withoutaction.
„.
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CII40fLR 16. NU1BERIN'G GRM71' AND LOAN APPLI
CAT[ ON'S
'
1. NUMBER TO BE ASSIGNED EVERY APPLICATION. '17ie Staff shall assign a number to every
application for a rehabilitation grant and/or loan, in accordance with the require-
ments of this chapter. The Staff shall enter the assigned number in the spaces
,
provided on the applicable Form CDR-,7660, Form CDR-7630, and Form CDR-7643 (or
equivalent), on all the other CDR forms and documents related to the rehabilitation
grant and/or loan.
2. ONE NUMBER SEQUENCE PER CALENDAR YEAR. The number system requires that only one
sequence of numbers, beginning with "1", be used in connection with each calendar
year. Number shall be assigned consecutively from this sequence regardless of
'
whether the applications are.for a rehabilitation sgrant, -
a rehabilitation loan, or both; and the type of property and loan involved.
,
3. NUMBERING OF APPLICATIONS. 'fie number assigned by the Staff to every application.
a related documents or a rehabilitation grant and loan shall consist of the
following three parts, with each part separated by,a slash
,. a. Calendar Year-Last Two Digits of Calendar Year 76-77 etc.
b. Number assigned consecutively from a single sequence of numbers shall be
'
used, for each year. If the applicant is submitting two applications -- a
Form CDR-7660 for a rehabilitationgrant, and a Form CDR-7630 (or equivalent)
for a rehabilitation loan -- in connectionwith the same owner-occupied, one
,
or two dwelling unit property, the same number shall be assigned to both
applications.
The "211, 113" "4", indicate
1
c. category code "1", or to the category of
'application as follows:
(1) Category code "1" anapplication fora rehabilitation loan only in
'
' connection with an owner-occupied residential property containing one
or two dwelling units after rehabilitation.
(2Y Category code "2" - an application for a rehabilitation loan in
'
connection with an investor-owned residential property. -
Category 'T' an
(3) code -- application fora rehabilitation grant only.
(4) Category code "4" - two applications from the same applicant in
connection with the same owner-occupied residential property containing
one or two dwelling units after rehabilitation; one application Form e
CDR-7630 (or equivalent) for a rehabilitation forgivable loan and the
other a Form:CDR-7660 for a rehabilitation grant.
,
4.i EXAMPLE OF APPLICATION NUMBER. The following examples of application numbers,
or illustrative purposes, 76/1/3.
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1 a. Calendar Year Excua lea. Therefore, in these examples, the portion of the
application num er representing the Calendar Year is 76.
1 b. Sequential and Final Digit Ex Zee. If the 29th application in the sequence
of rehabilitation grant and loan applications is for loan for an investor
1 owned residential property, the application number would be 76/29/2. If the
next application in sequence (i.e., the 30th) involves a grant and a forgivable
loan on the same property, the number 76/30/4, would be assigned to both the
Foran CDR' -7630 (or equivalent), and all related documents. If the next
application in sequence is for a grant only, the application number would be
1 76/31/3. 11
' S. TIME OF ASSIGNMENT OF APPLICATION NUMBERS. An assigned application number is a'
recor o i enti icauon accounta ility that is basic to management controls
by the Staff. Therefore, the Staff shall assign application numbers only at the
1 tines indicated below for the type of 'case involved.
a. Application number for grants shall be assigned at the following times:
1 (1) For a grant only, when the Staff approves and signs the Form CDR -7660.
:! (2) For a grant that is to be supplemented by a rehabilitation loan, when
'1 the Staff prepares the application for 'a rehabilitation Form CDR -7630.
The same application number (using category code "4") shall be entered
on the Form -CDR -7660 and the Form CDR -7,630 (or equivalent).
7 (3) For a grant that is to be supplemented with funds from some source other
than a rehabilitation'Joan, the Staff ;must have satisfactory evidence
of the availability of those funds to the applicant.
y b. Application numbers for loans shall be assigned at the time the Staff
',E•, completes the CDR -7630 "Application for a Rehabilitation Loan" and submits same
to th6�Rehabilitation Review Board.
1 6. REUSE OF APPLICATION NUMBERS NOT PERMITTED. An application number once assigned
by:t a Sta s all not a reus or reassigned. If a previous case to which the
* 1 .i•, Staff has assigned an application number is not approved, and is resubmitted at
a later date; the Staff shall assign the resubmitted case a new application
number with the sequence number applicable at that time. If the previous case was
for both a grant and a loan (a'category "4" case), and the resubmission is for a
:1 grant or a loan, the correct category code number (either "1" or "3") shall be
used in the new application nuinber,'as well as the sequence number applicable
at that time.
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CHAPTER 17. APPLICATION FEES
1. 'INTRODUCTION. An application fee shall be charged for all rehabilitation loan
applications,of $5,000 or more. No fee shall be charged for an application for
a rehabilitation grant or an application of less than $5,000.
2. APPLICATION FEE ON RESIDENTIAL PROPERTY.
'
a. Schedule of Fees. The Public Body shall charge an application fee for a
rehabilitation loan of $5,000 or more. The application fee shall be the
actual cost of the IIIA appraisal which presently is $50.
' -
b. Collection of Fee.
'
(1) The Financial Specialist shall not collect an application free directly
from the applicant. The amounts the fee in this case shall be in-
cluded in the Form CDR77630, and afterloan' closeout (See Chapter 12)
'
the Financial, Specialist will{refund the City funds it advances to
pay the application fee to HUD. If the Form CDR -7630 is not approved,
the amount of the fee advanced by the City shall be charged to CDBG
Rehab project cost.
'
c.'Payment of Fee to - HUD. The Financial Specialist shall advance CDBG Rehab
project fundsapplication fees to HUD. Payment of application
'
fees to-,IUD:shall accompany; the copies of- Form -I1UD-6242„ HUD Section (312
Loan Application' Fee -Request for As-Is,Appraisal, page 1, that the Financial`
Specialist forwards to HUD. (See Chapter 15) At the end of each day, the
1
Financial Specialist shall. prepare a check drawn on project funds, made
payable! to ','Department of Housing and Urban, Development," in an amount to
cover the Forms HUD -6242; -,that the City forwards to the Area Office
on that day. The check together with the supporting copies of Form HUD -6242,
' page 1,!shall be mailed to:,
Department of Housing and Urban Development
,
Attention: Office of Finance and Accounting; Director,:
Program Accounting Division
Washington, D.C. 20410
,
-i
The Area Office will not'make an as -is appraisal of the property unless
the Form FHA 2800 is accompanied by Form IM -6242, pages 2 and 3.
d. Reimbursement to Cit Oran Advanced A Zication Fee. The reimbursement
N f Pp
'i
of an application fee
or an approved loan di elf rsfrom the accounting
of an application fee for a disapproved,',canceled, or withdrawn loan.
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(1) Reimbursementn
eoLoan. The City
all reim ursoiasA
Cved
aiao12 for an appli-
os
pter
e
cation fee advanced for
an approved loan by transferring the full
amount of the advanced
fee from the rehabilitation escrow account to
project funds.
(2) Reimbursement of an. Application
Fee for a Disapproved, Canceled, or
Withdrmm Loan.
Since the fee is initially
advanced from project funds, no reimburse-
ment is :involved when a
loan is disapproved by the Rehabilitation
4 e
Review Board, canceled,
or withdrawn.
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cjimyroz 18. DUrETNINING WORK
TO BE DONE WITH 101ABILITATIONT GIMT AND LOAN
1. GENERAL. ]his section sets forth the responsibilities of the Rehabilitation
Construction Specialist for determining the rehabilitation work necessary to
bring a property into conformance with the Rehabilitation Standards and for
providing assistance in the rehabilitation of the property. In carrying out these
responsibilities, the Rehabilitation Construction Specialist shall:
Inspect
a. the property.
b. Make a preliminary work write-up and cost estimate of the work to be done.
c. Consult with and advise the owner on the work to be done, and the availability
of a.reliabilitati6n grant and/or loan.
d Prepare a fil abilita-
nal work write-up cost estimate as the basis for a rehabilita-
tion and/or loan and for contracting for the rehabilitation work (when
any of the work is to be financed with a rehabilitation grant and/or loan),
2., PROPERTY INSPECTION. The Rehabilitation Construction Specialist shall inspect
the property and preparL.an inspection report that identifies each deficiency with
respect to the Code and other deficiencies which may be corrected through
rehabilitation grant or loan funds. (See Chapter 5) An inspection report,p I re
pared in this.manner will later serve the Rehabilitation Construction Specialist
as the basis forprep aring a work write-up and cost estimate.
3 !
INSPECTION CHECKLIST. The City has developed an inspection checklistfor use ini
inspecting each residential property.In essence, such a checklist' isla listing
of every item which is subject to Code that may be found in a property.! The use
of such a checklistfacilitates the inspection, and also helps provide a proper
basis for the preparation of the work write-up, cost estimate, and the contract
specifications.
a. Checklist by Room. For a residential property, the items in the checklist
are classified by room. For example, items applicable to a kitchen or
bathroom are listed on sheets tinder those room classifications. Similarly,
alseparate sheet with an appropriate listing of items would be used for each
habitable room.
b. Checklist4rnat ion. Alongside each item on the checklist, space is provided
or indicating the, nature and extent of the deficiency. Additional space is
provided on the checklist', or in supplementalsheets, for notes dealingthe
types of materials', extent of repairs or replacement, and other. information
that may be helpful in later preparing the work write-up and cost 'estimate.
4. WORK WRITE-UP AND COST ESTIMATE. A work write-up and cost estimate is a statement
prepared by the Rehabilitation Construction Specialist based on the property in-
spection report that itemizes all the rehabilitation work to be done on the
'property, and includes an estimate of the cost of each item. The cost estimate
shall be reasonable and shall reflect actual costs prevailing in the locality for
comparable work.'
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ta.
Aon tion that Rehabilitation Finanei fJill Be Used. Since it is generally
not practical to predetermine ietier or not a property owner will utilize
a rehabilitation grant and/or loan in the rehabilitation of his property,
t
the Rehabilitation Construction Specialist shall proceed on the assumption
that such financing will be used. For this reason, it is important that the
'
work write-up be sufficiently detailed to facilitate:
(1) Cost estimation.
'
(2) Consultation with the property owner and/or tenant.
(3) Preparation of specifications for construction contract documents (see
Chapter 19) in conjunction with a rehabilitation grant and/or loan.
b.
Dual Use o} Work Write Up In a case where the rehabilitation is relatively
simple or limited in scope, the work write-up can be made sufficiently
comprehensive to be used later (without the cost estimates) as the specifi-
cations for the construction contract documents. In such a case, the work
write-up shall be prepared as described under paragraph 7. below.
'
c.
Itemizie t. Each item of work and its estimated cost shall be identified
in the work write;up as being either necessary to meet the Rehabilitation
Standards, "or for other purposes that may be financed with rehabilitation
grant and/or loan funds (see Chapter 5). This is done on the work write-up
by entermg the cost estimates in,a columnar arrangement.:
'
d.
Ad'uatin Work Write -U If the total estimated cost, of the work exceeds
t
t e amount o tie se abilitation grant and/or loan the applicant could`
receive, or exceeds the applicant's financial ability to do all work, the
'
Rehabilitation Construction Specialist shall eliminate or modify items in the
work write-up as necessary to reduce estimated cost; however, items of work
necessary to meet the Rehabilitation Standards shall not be eliminated.
e.
Owner's Preference. k preliminary work write-up should not contain details
Eitiav—F a no; significant effect on cost, such as color, style or pattern.
Decisions on these details can be made when preparing the specifications
i
for.the construction contract documents, or even after the contract award by
`providing
in the contract documents, as appropriate, the term "to be selected
111
by owner."'
is
5. APPLICANTS ELIGIBLE FOR REHABILITATION GRANT. For an applicant who eligible
IZ
for
a rehabilWLtion grant, the ME work write-up and cost estimate prepared
'
by the Rehabilitation Construction Specialist shall:
a.
'Identify each of the items of work to be financed by the grant.
'
b.
Show the total amount for those items, indicating how the statutory limits
were taken into, account (see Chapter 6).
'
(If
the final work write-up is to be used for the specifications, the two items
above shall be shown on a separate sheet that will not be part of the construction'
contract documents.)
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6.
'
CONSULTATION {✓ITN PROSPh.n,rVE APPLICANT. As soon as possible after inspection
of the property (preferably wit in 24 lours), the Rehabilitation Construction
Specialist shall consult with the prospective applicant on the preliminary work
write-up and cost estimate. 'Me Rehabilitation Construction Specialist shall
advise the applicant which items of work are required to meet the Rehabilitation
Standards, and which are not required, but may be financed with rehabilitation
grant and/or, loan funds. The Rehabilitation Construction Specialist should be
,
prepared to eliminate or modify any item in the preliminary work write-up that
isnot specifically required by the Rehabilitation Standards. However; the
Rehabilitation Construction Specialist should encourage each applicant to under-
'
take as much of the other rehabilitation work as he can reasonably afford. As a
result of';the consultationand agreement between the Rehabilitation Construction
Specialist and the applicant on the work to be done, the Rehabilitation Construction
Specialist shall prepare a final work write-up and cost estimate. The final work
write-up shall be the basis for the specifications in the construction contract
documents be
to used to solicit bids and proposals from contractors (see Chapter 19).
'
7. ,SPECIFICATIONS IN CONSTRUCTION CONTRACT DO CUMENTS. Each specification in a
construction contract document shall be written so that it provides a clear under-
standing of the nature and scope of the work to be done, and a basis for carefully
'
determined bids and proposals from contractors. Each, specification shall show
the nature and location of the work and the quantity and type of materials required.
'y
The specifications shall refer to manufacturers' brand names or to association;
standards to identify, the quality of materials and equipment required, and may make
provision for acceptable substitutes. If the work write-up is sufficiently com-
preheasive, it may itself be used for, the specifications, without any cost
estimate figures or distinctions as to work required or,not required.
,
Standard Specifications. The specifications in the construction contract documents
themselves shall be kept relatively simple by having the documents refer to the
technical and detailed specifications that are contained in an document that
is called "general specifications." This technique simplifies and facilitates the
preparation of the work write-up, cost estimate, and contract documents.
'
(1) Definition. The "general'' specification" is a document that compiles technical,
detailed specifications for each of the types of rehabilitation work that is
expected to occur, with some frequency, for the types of properties in the
,.,
project area, and are modeled after the PHA Minimum Property Standards for
one and two family structures.
(2) Availabilit The "general are
. specifications" kept on file in the project
P P 1
o fief a and other locations' convenient to all contractors.(
,
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' CIWFTLR 19. camrRACPING FOR REIMI1.ITAIJON WORK
' 1. INTRODUCTION. This chapter sets forth requirements and procedures with respect
To construction contracts for rehabilitation financedthrough a rehabilitation
grant, rehabilitation loan, or both. Construction work for rehabilitation financed
through a rehabilitation grant and/or a rehabilitation loan shall be undertaken
only through a,written contract between the contractor and the recipient of
the grant or loan. The Rehabilitation Construction Specialist shall assist each
applicant in arranging'; for and obtaining an acceptable construction contract.
' a. Form a Contract. The construction contract will consist of a single document
Tigned by the contractor and accepted by the borrower, only following approval
of the rehabilitation grant and/or loan. It shall contain a bid and proposal
by the.contractor and the general' conditions, as well as the specifications
for the work to be performed.:
b. Use of Alternates.' The contract document prepared by the Rehabilitation
' Construction Specialist may provider for alternates by which, the bidder, as
part of his bid and proposal, offers increases and decreases to the lump sum
contract', price to cover alternatives in the performance of the work. I'`An
alternate may be, used to cover an item of work,the need for which cannot be
determined until some time during the course, ofthe rehabilitation work. For
example, the construction contract' may; call for replacement of a bathtub. The
floor joists in the bathroom are not exposed; and their actual conditions cannot
be determined even with careful inspection. ; However, general conditions in
the bathroom, such as evidence of ',plumbing leaks over'a period of time, indicate
that the'floorjoists may'.be rotted'. The work write-up, cost estimate, and
the approved rehabilitation grant and/or loan may include an amount to replace
the floorjjoists,and related costs if, upon removal of the old bathtub, this
need is, apparent. Underisuch circumstances,' the work to replace the floor
' joists should be included'in the construction contract documents as an.
alternate.' If upon removal of the old bathtub it is found that work is not
needed, no payment for it is required under the construction contract. If
that work turns out to be needed, the cost is established by the construction
contract documents, and the contractor can be ordered to proceed with :that work
i 1 for the stated sum.
(1) Format for Alternates. 11 Generally, alternates should be avoided, but when°
' use, the Rehabilitation Construction Specialist shall provide for them
specifically in',the rsection provided for bid and proposal by adding
' material such 'as the followings
Alternate N1., (description of the alternate)
.1
Add $1 Deduct $
' Alternate N2. Same as above for Alternate #1.
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2 Unre ueated Alternates not Considered. 'Ihe Rehabilitation Construction
O
Specialist s all not consider alternates proposed by a bidder that are
not called for in the contract document prepared by the Rehabilitation
Construction Specialist. The Rehabilitation Constriction Specialist
'
shall not consider a bid and proposal that is qualified by the contractor
with unrequested alternates or other changes.
,
c. Procurement of Bids. An acceptable contractor's bid and proposal, in the
contract document ,form 'prepared by the Rehabilitation Construction Specialist
must be obtained for a residential case where extensive architectural work
'
is not required, before the Rehabilitation Financial Specialist processes
Form CUR 7630 for approval by the Director, and before the Rehabilitation
Financial Specialist approved Form CDIZ-7660 for the rehabilitation grant.
'
2.
''GENERAL CONDITIONS.The Rehabilitation Construction Specialist shall prepare
provisions of general,, conditions for general use in all construction contracts
for the rehabilitation of the property. There follows a listing of provisions
'
that the Rehabilitation Construction Specialist must include in the general
conditions:
bid be
'
a. The address to which the contractor's and proposal must' submitted:
(Name of property owner) Care of: (City of 'Iowa City, Department of
Housing and Inspection Services.
' --
b. Date and time by which a bid and proposal by the contractor is to be received `
by the Rehabilitation Construction Specialist.
CT
C. A provision that the bid and proposal shall be accepted by the borrower within
30 days from the date established by the Rehabilitation Construction
Specialist for its receipt, provided that the contractis subject to issuance
'
of a proceed order by the borrower, and no work shall. be commenced by the
contractor until he has received a written proceed order.
'
d. A provision that the borrower is obligated to issue a written proceed 'order
within 30 days from the date of acceptance of the contractor's bid and
'I
proposal. If the order, is not received by'the contractor within this period,
the contractor has the option of withdrawing' his bid and proposal.
e. A provision that the contractor must commence work within 30 days after
'
issuance of the proceed order. Only in the case of work involving non-residential
property can this limit be extended for a reasonable time past the!30-day
n
limit.
i
f. A provision that the contractor must satisfactorily complete the work within
days after the issuance of the proceed order.
'
g. A provision that the contractor will be paid the contract price, in one lump
SUM amount, after 'the work is satisfactorily completed unless payment, is to
be made in progress payments as the work progresses. When progress payments
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' are to be made, the contract must include a schedule that specifies the
stages at which payment will be made and the percentage (or amount) of the
contract price that will be paid For the satisfactory completion of each
stage. Progress payment shall not exceed 80% of the value of the work
satisfactorily completed. Progress payments (limited to two) and final
' payment due the contractor will be paid within 20 days after the Rehabilitation
Financial Specialist receives the contractors invoice and satisfactory
release of liens or claims for liens by subcontractors, laborers, and material
suppliers for completed work or installed materials.
h. Provisions that the contractor shall be required to:
' (1) Furnish evidence of comprehensive public liability insurance coverage
protecting the owner for not less than $100,000, in the event of bodily
injury including death, and $50,000, in the event of, property damage
'I arising out of the work performed by the contractor; and, evidence of
insurance or other coverage required by local law governing workman's
compensation.`
' (2) Obtain and pay for all, permits and licenses necessary for the completion
and execution of the work and labor to be performed.
(3) Perform all work in conformance with applicable City codes and require-
ments whether or not covered by the specifications and drawings for the
work.
' (4) Abide by Federal and City regulations pertaining to equal employment.
O p p y during the course of the work and
5 Kee ithe remises clean and orderly
remove all debris at the completion of the work. Materials and equipment
it that;, have been removed and replaced as part of the work shall belong to
the contractor.
y ' : (6) Not assign the contract without written consent of the owner. The
j request for assignmentmust be addressed to the:
' City of Iowa City
Department of Housing and Inspection Services
Civic Center
Iowa City, Iowa 52240
(71 Guarantee the work performed for a period of one year from the date of
final acceptance of all work required by,the contract'. Furthermore,
' furnish the owner, in care of the Rehabilitation Construction Specialist,
with all manufacturers' and suppliers'', written guarantees and warranties
covering materials and equipment furnished under the contract.
(8) Permit HUD or its designee, to examine and inspect the rehabilitation
work.
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i. 'Provisions that the owner will;
(1) Permit the contractor to use, at no cost, existing utilities such as
light, heat, power, and is -iter necessary to the carrying out and
'
completion of the work.
(2) Cooperate with the contractor to facilitate the performance of the
'
work, including the removal and replacement of rugs, coverings, and furni-
ture, as necessary.
j'. A provision that; the premises are to be either occupied or vacant during the
'
course of the construction work.
k. A provision that final payment on.the contract amount will be made only after
final inspection and acceptance of all the work to be performed by, the
contractor, and the contractor has furnished ,the owner, c/o Rehabilitation
Construction Specialist, satisfactory releases of Tiers or claims far liens
by the contractor, subcontractors, laborers, and materials suppliers.
1. A provision that;the contract consists of the bid and proposal, the general
conditions, the specifications incorporated therein by reference and
identified as Exhibit "A" and the drawings (if any) identified (the Rehabilita-
tion' Construction Specialist will have inserted appropriate identification
of the specific drawings).
t
m. A section at the end of the general conditions containing material to be
completed by the bidder, generally as follows:
'
Por the considerations named therein, the Contractor
proposes to furnish all the material and do all of
the we described in,'Iand in accordance with „,the
'
' contract identified above in item 1. of the general
1 conditions for, the lump -sum price of $
t
Contractor Acceptance by Owner
(name' of contractor) (name of owner(s))
' L
J
' (address and ZIP of contractor) (address and ZIP code of owner(s))
{ " (date of proposal and bid) (date'of acceptance)
'
1
(notarization or acknowledgement) (notarization or acknowledgement)
'
3. SPECIFICATIONS'AND DRAWINGS. Specifications, based on the work write-up and
illustrative s etc es, IT any, covering'the specific rehabilitation work for each
i' property on which a,rehabilitation grant and/or 'loan will; be made shall be pre-
'
pared; by the Rehabilitation Construction Specialist. Drawings shall be prepared
only when essential'to show the scope of the work involved so that a fair bid for
I. the work can be obtained, and'to avoid misunderstandings with the bidder. The
specifications and drawings 'shall be based on the work write-up resulting "frau an
inspection of the property and interviews,' as indicated,with the applicant. The
specifications shall clearly establish the nature of,the'work to be done and the
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' material and equipment to be installed. Fach page of the specifications and
drawings shall be numbered and shall contain identification that includes the
' name, address of owner, and the date of the specification.
4. OBTAINING CONTRACTORS' BIDS AND PROPOSALS.The Rehabilitation Construction
Specialist shall establish and, on the basis of his experience, maintain a current
listing of contractors, subcontractors, and materials suppliers who are qualified
to perform, and aren interested in doing rehabilitation work financed through a
' rehabilitation grant and/or loan. 'Me listing may be based on; the experience of
the Staff, experience of, property owners and others, information' obtained from
banks;, credit, and trade associations, FHA'Insuring Office, and other information
available to the Staff. While the list in a limited way, may serve the purpose
of prequalifying bidders, it shall not be used as a means of excluding bidders who
are not on the list"at the time the submission of a bid and proposal is in order.
' 5 INVITATION TO CONTRACTORS FOR BID AND PROPOSAL.
a. Contractor Selection. The owner shall be asked for the names of two contractors
he would lie to bid on the rehabilitation of his property.If the owner does
' not knowtwo contractors or no contractors, the Rehabilitation Construction
Specialist shall provide the property owner with one or two 'contractor names
when the owner knows of no contractors from the,list ofapprovedcontractors
' maintained at the Department of Housing and Inspection Services.
b. Invitation to Bid.: Once two contractors have been selected according to
paragrap 5. a, above, the Rehabilitation Construction Specialist shall contact
' the selected contractors and invite them to bid the proposed rehabilitation.
The Rehabilitation Construction Specialist shall meet each contractor at the
subject property'at an appointed time to assist in the in of ;the
' property and to facilitate obtaining a bid.
,-
c. Bid Review. Upon receipt of the bid proposal from both bidding contractors,
P P
' te,Re a litatioConstruction Speciast'shll'review the bids for com Tete-
h
ness and accuracy' making; special note to assure that the specificatioave
ns h
been adhered to.
d., Acceptable Bid. An acceptable bid: is one that upon review under 5. c. above,
is not in excess of 40$ of the Rehabilitation Construction Specialist's
estimate. The lowest acceptable bid shall be recommended to, the owner for
,.t acceptance. In t- Feevent no acceptable bids are received the Rehabilitation
Construction Specialist shall reject all bids and ask the owner to select
another two bidding contractors and repeat the bid, process,
e. Maintenance of the Contractors' List.
y, (1) The Rehabilitation Construction Specialist shall be responsible for
,.' maintaining ,a list of all contractors who have expressed an interest in
bidding on rehabilitation construction and who can provide the following
'$ as contained on Form MR -7646:
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(a) Adequate active liability insurance (see 2. h. (1) above).
'
(b) The name of his company bank.
'
(c) The names of his usual subcontractors.
(d) The names of his principal suppliers.
'
(e) The names and addresses of at least two (2) residential rehabilitation
or remodeling jobs.
'
Contractorsproviding' acceptable data as requested above shall be placed
on the list of approved contractors. No contractor shall be placed on
the list who is subject to FHA debarment under' paragraph S. e. below.
'
(2) The Contractor List shall be maintained in a conspicuous place within
the Department of Housing and Inspection Services office; open to public
,
review...The Contractor List shall be grouped according to the category ,
of specialization 'the 'contractor requests to be listed (e.g., general
contractors, electrical, plumbing/heating, masonry, dry wall, etc.).
'
(3) Selection of 'a contractor to bid on a specific job shall be made by taking
the 'contractor whose name appears at the top of the list under the
categoryof specialization that is applicable to the specifications under
,
consideration. As a.result, all contractors, move up one, and the name
of the contractor selected to bid is placed at the, bottom of the list.
f.
Acceptable Contractors. The Rehabilitation Construction Specialist shall
always exercise care and good judgment in selecting a contractor. A
selected contractor shall';be of good reputation, financially sound, have
„ adequate'financial resources to carry out his bid and proposal, and be qualified
'
to do the required work.'.'; The Rehabilitation' Construction Specialist shall
frequently monitor the list of contractors to assure that they continue to
be acceptable.
'I
(1) Referral to HUD. On all contracts in excess of $10,000, when a'bidding
contractor is not known to the building, nspectors, the Rehabilitation
Construction'Specialist shall check the contractor more carefully,
including getting up-to-date information on him from the PITA Insuring
Office before suggesting the owner award the contract.
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(2)Contractors Subject toAdminist atzve Debarment. Checks made by the
�
Rehabilitation Construction Specialist,"will not preclude the FHA from
making previous participation checks as itdeems necessary, Contractors
found subject to Federal administrative debarment as a result of these
checks shall not:be selected:
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' g. No Notification to Bidder before Contract Award. The Rehabilitation
Construction Specialist shall not advise any hidders of either selection
' or rejection before the contract is awarded.
6. AWARD OF CONSTRUCTION CONTRACT. The contract shall be awarded by having the
applicant for the rehabilitation grant and/or loan properly execute the contract
twith the assistance of the Rehabilitation Construction Specialist.
a. Issuance of Proceed Order. At the time the award is made, the Rehabilitation
Construction Specialist shall remind the applicant and the successful
contractor that the undertakinglof the work covered by the contract is
subject to issuance by the owner of a proceed order, within the number of
' days stated in the generalconditions of the contract from the date of the
award. Upon award of the contract, the Rehabilitation Construction Specialist
shall notify unsuccessful bidders that they have not been awarded the contract.
' b. Contract Awarded after Receipt of Reservation of Funds. In a case involving
a loan, t o contract award shall a ma a only a ter the Rehabilitation
'I Construction Specialist has received a firm commitment from the Director that
' the loan has been approved.
c. Award within 30 days of Cutoff Date. In order for the bid and proposal to
` be binding, the award shall be.made within'a period of 30 days from the cutoff
date established by the Rehabilitation Construction Specialist for the
receipt of the bid and proposal, unless a''later date Js agreed upon'in
'writing.
:Contract Award. In the award of a construction contract for rehabilitation,,
The rehabilitation grant and/or loan shall execute the original and; five copies
'of the contract documents.: The Rehabilitation Construction Specialist shall
' distribute the executed contract documents as follows:
(1) Executed copy to contractor.
f
(2), Executed copy to borrower.
' (3) Executed original and copy retained by, Rehabilitation Construction
Specialist for file.
(4) Executed copy to private lender (if applicable).
7. ISSUANCE OF PROCEED ORDER. The general conditions of the construction contract
will state that the owner, will issue a proceed order within a stated number of
' days from the date of acceptance of the contractor's bid and proposal. The
proceed order for a'construction contract which 'shall be executed by the
-'`N borrower at loan settlement, shall be issued within 30 days of the acceptance
of,the contractor's,bid and proposal, and shall require the start of construction
'within 30 days or less from the date of the order's signing. In order to con
form with this contract condition, a proceed order shall be issued promptly'
after the Form CDR-7660 for a rehabilitation grant has been approved and/or loan
' settlement has been completed for an approved loan. Loan settlement is con-
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sidered completed only after recordation of the mortgage and expiration of
rescission right. The Rehabilitation Construction Specialist shall assist;
the, grantee or borrower in the preparation and issuance of a proceed order.
The proceed order shall be prepared for the applicant's signature, and shall
'
be distributed by the Rehabilitation Construction Specialist, as follows:
a. Original to the contractor.
'
b. One copy retained for the file.
c. One copy to grantee or borrower.
t
8.
LABOR PERFOMVED BY OWNER IN REHABILITATION PROPERTY. Questions arise from time
to time, during the processing of a rehabilitation grant and/or loan, concerning
'
the owner's performance ofsomeor all of the labor required to complete the
rehabilitation of his property. lliese paragraphs are intended to supply
answers to those questions, as well as describe the circumstances under which
'
this form of self-help is desirable and to be encouraged.
a. Type of Work and 'Skill e, Omner. A property owner may complete some or all
of the tasks required to rehabilitate his property, if he has the degree of
1
skill required to perform the work involved. Self-help is usually, appropriate
for the accomplishment of tasks of an unskilled nature Stich as general clean-
up, demolition of small buildings on a property, removal, cartage, and
disposal of the debris„ and for work that involves minimal. use of costly
materials and equipment. Work of 'a skilled nature, and work involving the
extensive installation of costly materials and equipment, are, appropriate
'
if the Rehabilitation Construction Specialist is assured the property owner
has the ability and experience required to do the work properly without
supervision, or that he has'sufficient skill to do the work properly with
technical advice and guidance from the Rehabilitation Construction Specialist.'
,
b..Technical:':Aid Eligible as Project Coat. The. Rehabilitation!Constnaction
Specialist is reminded -that provision of technical assistance is part; of
'
•
his ob j 'fu nction. With such assistance ,'partial or total rehabilitation of
a property through self-help may be made more feasible.
C .. Benefits from Self-help. Self-help may reduce the amount of a loan that the
1
property owner would otherwise.require,,',thereby reducing his monthly payments
or the term of the loan, as he prefers.
,
At times, self-help may also enable a property owner to obtain a rehabilitation
grant and/or loam by reducing costs to an amount within the statutory limits
for a grant and/or loan, and simultaneously may make loan'', repayment feasible.
,
For example, the 'cost to accomplish complete rehabilitation, entirely by
contract, may be more than ,can be allowed under the statutory, limits
applicable to a grant and/or loan, or may require a loan that would exceed
1
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the owner's ability to repay.
'!
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d. Provision for Self-help in Cran'
and Housinq Loan. Whenever self-help is
necessary, indicate or desire an the Rehabilitation Construction
' Specialist considers that with or without its technical assistance and
guidance a property owner will be able to perform the work in a reasonably
acceptable and expeditious manner, it may process an application for a
' rehabilitation grant and/or loan on that basis. In such a case, the amount
of the grant and/or loan would provide funds to pay for the materials and
equipment to be installed by self' -help, as well as any additional funds
needed to pay for other rehabilitation work to be performed by a contractor.
' The grant and/or loan shall not, include funds to pay the owner or members of
his family for their la or. Further, the Rehabilitation Construction
Specialist must exercise good judgement and prudences asto avoid a situation
' in which,an owner could place himself in financial difficulty through improper'.
use, installation, or even destruction of the materials and equipment pur-
chased with grant and/or loan funds. For this reason, the owner should
understand that the proceeds of a grant and/or loan to pay the supplier for
' materials and equipment involved in a'self-help will be'disbursed from the
rehabilitation escrow account by the Rehabilitation'Financial Specialist, only,
after they have been properly installed.
e. Coordination with Contractor. When some of the rehabilitation work is to be
done:through ;self-help, and the remainder is to be done by the contractor,
'i the Rehabilitation Construction Specialistshould assure that the work is
done by each of them so as not to interfere with or jeopardize the other's
'1 work. In cases where a separation in the timing of the work is not feasible,
the Rehabilitation Construction Specialist should ,urge the owner and con-
'' tractor to make their own arrangements on the timing, so that each may do
i; ' his work without, causing any interference in the work to be done by the
other. ;In all instances, the owner will be better`protected(if work to be
r ' done through self-help is completed before the contractor starts his work.
Such completion' will help avoid claims by; the contractor for';extras;or'damages
he mayjclaim are caused by the self-help efforts,.', and will assure,that when
.'all work is finished, the property will comply with the Rehabilitation
Standards.' i
•'( 9. OTHER PROVISIONS (in re: 21:0) of this chapter)
a. The Contractor Shall: indemnify and hold harmless the Owner, the Owner's
employees, the City—Manager, and the City's employees from any and all lia-
bility, loss, cost, damage, and expense (including' reasonable attorney's fees
and court costs)' resulting from, arising out of, or incurred by reason of any
claims, actions, or suits based upon or alleging, bodily injury, including
death, or property, damage rising out of or resulting'from.the Contractor's
operations under this Contract, whether such operations be by himself or by
any ,Subcontractor ';or by anyone directly or indirectly employed by either of
them. The Contractor shall obtain insurance for this purpose, which shall
' insure the interests of the Owner and the City as the same may appear, and
shall file with the Owner and the 'City certificates of such insurance.,
b. Correction of Faulty Work after 'Final Payment: The approval of the final
' Request for Payment, by the inspector and the making of the final payment by
' the Owner'to the Contractor shall not relieve the Contractor of responsibility
:,•' for faulty', materials or workmanship.
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CIIAF'1'BR 20. INS11ECIION OF REHABILITATION WORK
'
1. GENERAL. This chapter sets forth the requirements for the inspection of rehabilita-
tion work financed in whole or in part with a rehabilitation grant and/or loan.
2. RESPONSIBILITY FOR MAKING INSPECTIONS. Ilie Rehabilitation Construction Specialist
shall.make inspections of construction work in cases involving'a rehabilitation
loan or a rehabilitation grant. To accomplish this, the Rehabilitation Construction
Specialist shall make:
'
(1) Compliance inspection, as necessary, to assure that the construction work
is being completed in accordance with the construction contract.
(2) A final inspection to determine that the construction work has been completed'
in accordance with construction contract. The Housing Inspector and any special-
'
ists from the Building InspectionSection, as may be ,required, shall
,i
accompany;,the Rehabilitation Construction Specialist on the final ;inspection
and shall provide the Rehabilitation Construction Specialist with a written
report of.,!their findings.
,
3. INSPECTIONS FOR PROGRESS PAYMENTS AND FINAL PAYMENT. Inspection of construction
York shall be,made in accordance with t efollowing:
'
a. Pro ments.s A compliance inspection of the rehabilitation work shall
be made before the Rehabilitation Financial Specialist makes a progress payment
'
on a.contiactor's invoice.;'
(1) Inspection Report - Request for Payment. The Rehabilitation Construction'
ti
Specialist shall prepare an inspection report (original and one copy)
for:. cases involving a rehabilitation grant and: for 'City Rehabilitation
loans.
'
'
(2) Payment for Satisfactory Work. If the, inspection determines that work com-
pleted is, satisfactory, the Rehabilitation Financial Specialist shall
draw',on the escrow account a progress payment check payable to the
' I,
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borrower and the intended payee (See Chapter 14). Ii
(3) Obtaining Corrective Action. If the work completed is not in accordance
with.the construction contract for a progress payment, the Rehabilitation
Construction Specialist shall advise the borrower of any noncompliance
in the construction work, or of; an incorrect invoice submitted by the con-
tractor. The borrower 'shall be.requested to obtain, with assistance from
'
the Rehabilitation Construction Specialist appropriate corrective action
fromlthe contractor. No payment shall be made on a construction con-
tract until the contractor has satisfactorily completed the necessary
'
corrective action.
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b. Final Inspection. Upon completion of the rehabilitation work and receipt of
the contractor's invoice containing his certification of satisfactory completion
' of all the work in accordance with the contract and his warranty, the Rehabili-
tation Construction Specialist shall arrange for inspection of the completed
work.
' c. 'Making Final Payment. When the final inspection determines that the work is
satisfactorily completed in accordance with the contract, the Rehabilitation
Construction Specialist shall obtain from the contractor a release of liens, and
' a copy of each warranty due the borrower for the work. After receipt of a
release of liens,; including releases from all subcontractors and suppliers
and a copy of each warranty, the Rehabilitation Financial Specialist shall make
final,payment'in accordance with Chapter 14. The Rehabilitation Financial
Specialist shall'.thenForme CDR -7645:
P prepare
' 4. CERTIFICATION OF FINAL INSPECTION. After the Rehabilitation Construction Specialist
determines that the rehabilitation work has been fully and satisfactorily 'completed
and the finalinspection report obtained, the Rehabilitation Financial Specialist
shall prepare,a Form CDR -7645 (original and three copies).
Distributional Form CDR -7645 shall be distributed as follows:
' (1) Signed original to the property owner.
(2) Signed copy, retained in the property file.
5. SUPPLEMENTAL INSPECTIONS. In some cases defects and inadequacies in the con-
struction work, not; apparent at the time of final inspection, may show up after -.
i final payment for the work is made and'Porm,CDR-7645 is issued. Most of these
' are minor, such as doors and windows that stick after painting._ However,'others
are serious, .such as'roof leaks not ascertainable until after a rain, defects in
,., heating systems installed during the nonheating season that were not revealed in
the limited tests after installation, and plumbing leaks 'that did not show up in
the finalinspection:
a. One -Year Guarantee on Work b Contractor. All work performed by the contractor
is covered by a one year guarantee but property owners are not always aware
that, for a,period 'of one year, they may, require the contractor to correct
significantdefects and inadequacies in the work performed under this contract.
;t Fort is r�i" eason, the Rehabilitation Construction Specialist' shall inform the
owner of 'the guarantee requirements upon completion of the rehabilitation.
b. Additional Call by Rehabilitation Construction Specialist to Insure Validity
and Correction of Complaints. Alt oug a limited examination indicates that
the
incidence q serious defects and inadequacies in the construction work is
not frequent, and contractors generally correct them promptly, when requested,
' the Rehab
iliiConstruction Specialist, after the final inspection, shall
make an additional call on the property, owner to ascertain if there are any
complaints about the work that has been done. This call shall be made within'
60 days after the issuance of Form CDR -7645. The Rehabilitation Construction
rs� Specialist shall inspect that work to ascertain if the complaint is valid. If
the complaint; is valid, the Rehabilitation Construction Specialist shall assist
the property owner in obtaining prompt corrective action from the contractor.'.
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The contractor must be given written notice with reasonable promptness.
,
Should the contractor fail to answer or correct the defect(s) within a
reasonable time, the Rehabilitation Program, at owner request, will
assist owner in the following manner:
,
(1) Staff members of the Housing Rehabilitation Program will investigate
the complaint.
'
(2) If the Rehabilitation Program finds the complaint to be invalid, owner
will be so notified.
,
(3) If the Rehabilitation Program finds the complaint to be valid, :the
Rehabilitation Program will direct the contractor to take necessary
corrective action within a specified length of time.
'
(4) If the contractor complies, the Rehabilitation Program will reinspect
the work and, if it is satisfactory, 1, the owner will be expected to
'
.i sign a written statement withdrawing the complaint.
I
(5) If the contractor fails to respond to the request within the specified
length of time, the Rehabilitation Program, upon owner request, will
'
prepare a letter for owner's signature, notifying the contractor a
second tine that unless the complaint is abated by a specified time, a
formal complaint will be filed with the State Building Board for
'
appropriate action.
(6) If the contractor fails to respond to the request for correction within
I
the time specified:
(a) The Rehabilitation Program will take any necessary action to have
the defects corrected, including but not limited to paying
reasonable costs of: correcting work or materials determined by
the Rehabilitation Program to be defective. By paying such costs,
`
the Rehabilitation Program will assume the role of the homeowner
,
as to any legal claim or claims the homeowner may have against the
contractor in regard to such defective work and/or materials.
I (b) The contractor may be prohibited by the Rehabilitation Program from,
contracting any other rehabilitation work under any;r,ehabilitation l
program administered by the Rehabilitation Program.
,
I,6. CONSTRUCTION SPECIALIST (INSPECTOR) - OWNER - CONTRACTOR RELATIONS
Construction Specialist's Responsibility and Authority:
'.
The Construction Specialist shall observe the work on behalf of the City,;and
I
will provide general assistance during construction insofar as proper'interpreta-
1
,'
tion !of the Minimum Housing Code requirements is affected.
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CIWrI'M 22. INCalE
,
-APPLICANT'S
'
1. GENERAL. This chapter sets forth the basis for establishing an applicant's income
of r, the purposes of a rehabilitation grant and/or loan on a residential property,
and takes into account the variations applicable to different type of applicants
and properties, and special considerations related to the type of project area
in which the property is Located.
2. TYPE OF APPLICANT. In order to make determinations with respect to eligibility
1
for a rehabilitation grant, and the purposes and amount of a' rehabilitation loan,
an applicant is identified as either an owner -occupant of a one -or two -dwelling-
unit property, or an investor -owner. For purposes ofdetermining an applicant's
'
income, anrapplicant,must be identified additionally, either as a person or
other legal entity, as, defined below..
'rhe "person"
a. Person. term mean,; one or more natural persons who either hold
legal title to, or occupy under a'land sales contract, a property, to be
rehabilitated.
b. 'Other Leg aZ Entity? The teen "other legal entity" means any legal entity other
than a "person", such as a' partner ship or corporationl.that holds legal title
to a property to be rehabilitated. Any "other legal entity" within the meaning'
of. this definition' is also an investor -owner.
3. SOURCES OF FUNDS AND AMOUNTS COMPRISING APPLICANT'S INCOME. The following is a
,
listing of the elements comprising income for purposes o -a rehabilitation 'grant
and/or loan. Exclusions from income applicable in special circumstances are
stated in paragraph S below.
a.Portion of Income Derived from RentaZ Units. If the property will contain
a more tan one dwelling unit after rehabilitation, that portion', of an applicant's
income that is derived from the property shall be reported on Form CDR -7660,
,
block C,,line 3, as a net figure determined as follows:
(1) Net Income. 'rhe net income from the rental units in the owner -occupied
t
property to be rehabilitated is the gross rental',income, less expeditures
' allocable to the rental units. These allocable expenditures including
payments, Lon ,the basis of an average of: one or more years for mortgage
'
or land contract principal and interest, mortgage insurance premium,
service charges, hazard insurance, real estate taxes and special assess-
ments maintenance and repairs, heating and utilities, and other cash
expenditures for the property such as advertising vacancies. If the
applicant has not owned the property for one or more years, the Rehabilita-
tion Financial' Specialist shall estimate the income and expenditures
on the available experience.
i. (2) Allocation of Expenditt<rea to Rental Unite: The allocation of expenditures
to t e rental units may be. esta lis y dividing total monthly expendi-
tures for the entire property by the number of units in the property.
,
'llie'result is the shared expenditures allocable to the owner -occupied'
'
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Rehabilitation Financing Handbook
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' dwelling units, which when subtracted from the expenditures for the
entire property, produces the monthly expenditures allocable to the ren-
' , tal units (i.e., often units are rented with heat and water but under
separate electrical meters; in these cases, the heat and water are
shared expenses but the electrical cost to the tenants is not part of
the building expense).
(3) Net Rental Income on Form CDR -7660. The monthly expenditures allocable
to the rental units, subtracts from the gross rental income from the
' property, produces the net rental income to be entered on CDR -7660,
block C,' :line 3.
b. Portion of Income Derivedfrom Roomers. If the property will contain rooming'
units, that portion of an applicant's income that is derived from roomers
shall be reported on Form CDR -7660, block C, line 3, as a net figure
-...
' determined as follows:
(1) Net Income. The net income from the roomers in the owner -occupied
property to be rehabilitated is the gross rental income, less expendi-
tures allocable to the roomers. These allocable expenditures including
payments, on the basis of an average of one or more years for mortgage
or land contract principal and interest, mortgage insurance premium,
service charges, hazard insurance, real estate taxes and special
assessments,I',maintenance and repairs,heating and utilities, and other
cash 'expenditures
for'the property for one or more years, the, Rehabili-
tation Financial Specialist shall estimate the income and expenditures
on the available experience.
" (2) Allocation of Expenditures to Roomers.' The allocation of expenditures
AI ' of the roomer may be esta lis y etermining the percentage of floor
space that is used ''exclusively ,by the roomer(s). The allocable
expenditures"'shall be reduced by the percentage, of floor, space as
1 ' calculated above.
C, . Applicant Who Is a Person. Income of an applicant who is a "person" includes
the income o ,the applicant and his family., The applicant's"family includes
the applicant and'any other person or persons related by blood, marriage, or
operation of law, who share the same dwelling unit. ; If ownership of the
property rests in more than one person, the applicant is each owner and
family. The applicant's income, therefore, is the sum of the family incomes
of all applicants:' M applicant's: income is established on'an annual:basis,
at the time of applying for a rehabilitation grant and/or loan, and includes:'
(1) The'!applicant's earnings.
(2) Spouse's earnings.
(3) Other family members living in the hone, if their employment is a
definite'' characteristic of family life.'
a ' Excluded is the income of'an adult family member', other than the
applicant and spouse, who 'does not have an ownership interest in the
property, but included are any funds contributed or paid to the
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'
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family, on a regular basis by an excluded adult family member. (such
as room and board, rent, etc.)
Excluded are incomes of those under 18 or full-time students or mentally
'
or disabled children:
(4) Other income regularly received by applicant or his family.
'
(5) Net income from real estate, other than the property to be rehabilitated,
and any other net business income.
'
(a); Gross rental income, ,and
(b) On the basis of an average or experience for two or more years,
'
expenditures for mortgages principal and interest, mortgage
insurance premium, service charges, hazard insurance, real estate
i' taxes and special assessments, maintenance and repairs, heating
,
and utilities,ground rent, and other cash expenditures for
the property, such as advertising vacancies. If the applicant has
not owned the property for two or, more years, the staff shall
estimate the income and expenditures on the available experience.
,
4. REPORTING OF APPLICANT'S INCOME. The applicant's income is reported on the
application orm submitted by,the applicant, as follows:
,
a. Rehabilitation Grant. The applicant's income shall be reported on Form
CDR -7660, "Total Present Monthly Income of Applicant."
b. Rehabilitation Loan. The applicant's income shall be reported on Form
CDR -7630.
'
(1) Owner=Occupied Property. The applicant's income with respect to'a
rehabilitation loan on an owner -occupied property shall be reported
on Form CDR -7630, as follows: the''gross rental income from the l
property to be rehabilitated`shalllbe included in block 'D,;line 5,
"Gross Income from Real Estate"; and the expenditures in block E,
Monthly Housing Expense", on lines l through 9, as appropriate.'
4 . 5. EXCLUSIONS AND ADJUSTMENTS TO APPLICANT'S INCOME.
t; a. 'Grants. Deduct the following amounts from gross income:
! ',
(1) $25 per child per month (child must he living in the home, under 18
years of age, orfull-time student dependent).
t
(2) Deduct 10% of 'gross income for taxes (persons not retired or disabled),
`-i 01l see (3).
'
(3) Deduct 25% ofretirement benefits, disability benefits, or Social
Security benefits.
'
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CHAPTER 23. TRUTH IN LENDING RIiQU1RIMEN1'S I.OR RHIABILITATION LOANS
' 1. PURPOSE. This chapter describes ''the Truth in Lending Act and its procedural
and disclosure requirements which must be followed in the settlement of City of
Iowa City rehabiliation loans. Such requirements are in addition to those
stated in Chapter 11 and other parts of this handbook.
2. BACKGROUND.'
' a. The Act: The Truth in Lending Act is Title I of the Consumer Credit
Protection Act (Public Law 90-321; title 15, U.S. Code 1601 et seq.), enacted
' by Congress on May 29, 1968. The act requires that borrowers in ':'consumer
credit transactions" be vested with certain rights and protections in
connection with the transaction and receive_ specified written information
from their lenders. The disclosures must be made before credit is extended
' and before the borrower becomes obligated in connection with the transaction;
1.e.,,before execution of a note or mortgage. Among the required dis-
closures are:
'J" (1) The amount of credit a borrower will have for his actual use (the
AMOUNT FINANCED); and
' (2) The FINANCE CHARGE (consisting primarily of interest but also other,
fees an�iarges expressed both as a dollar amount and as an ANNUAL
PERCENTAGE RATE.
b. 'Three-day Reaeia8ion Provision. In addition, the act enables a borrower,
r;
within! 3 days,,following the loan transaction, to rescind the transaction, if ".
the loan is secured by!a lien on the borrower's residence.
3. TRUTH IN LENDING DISCLOSURE STATEMENT: USE IN REHABILITATION LOAN SETTLEMENTS.
Form .CDR- , Trut ,in Lending Disclosure Statement, is to,be use at loan
' settlement in meeting the requirements of the Truth in Lending Act.
I, a. Alaeabilit A completed Disclosure Statement shall be given to all borrowers
,
o re ihtation loans.
b. Time of Furnishing Diaclosure'Statement to Borrower. The Disclosure Statement
'.' shall be, given t e borrower,at loan settlement but -prior to the time he
executes the mortgage and promissory note obligating his repayment of the
loan.
C. Recei ted 'Co o Disclosure Statement Retained b Financial S ecialist.
When the?Disclosure Statement is given to
a orrower, e s all a requested
to sign and date an identically completed Disclosure Statement in the presence
a of an employee or other authorized representative of the City who shall also
sign as witness. The signed and witnessed copy of the Disclosure Statement
shall be retained by the'City;in the loam application file.
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Rehabilitation Financing Handbook
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S. BORROWER'S 'SECURED
RIGHT OF RESCISSION: LOANS. Under the law, certain borrowers
have the right, within a 3 -day period, to rescind the entire loan transaction.
This right of rescission applies to rehabilitation loans, secured by mortgage
or deed of trust, on residential property owned and occupied by a horrower
'
who is a natural person.
6. NOTICE OF OPPORTUNITY TO RESCIND TRANSACTION. Borrowers entitled, by the pre-
re-cedingparagraph
ceding—paragraphS, to rescind the loan transaction shall receive a properly
completed Notice of; Opportunity to Rescind Transaction in, the format which appears
in Appendix 2.
'
a.'Furiziehi Notice to.Borrower 'at Loma Settlement. The Financial Specialist'
shall give the borrower two copies of,the 'notice at loan settlement, and
prior to his execution o mo> rtgage and note. The notice's nature and purpose'
sliall be explained. One additional, or third copy of the notice shall be
signed by the borrower so as to evidence zM s receipt of two copies of the
notice. The receipted copy shall be retained by the City in its loan
application file. -
b. Format of Notice.' The City shall, on its own letterhead, reproduce the
notice, both front and back, as it is shown in Appendix 2. The text ',shall
consist of the 'same 'language, 'with iblanks completed, so as: to show the
application number, loan settlement date, deadline for rescission (three
business days following loan settlement date). The paragraph entitled,
'
"Effect of Rescission" shall appear on the reverse of the notice. The size
of the text on both sides of the notice shall be not less than 12 -point
bold-faced type
'
C. Three -da ''Rescission Period. To compute the running of the 3 -day rescission
I period for entry on,the notice,,.treat the date of loan settlement on which
c the borrower receives the, notice as Day Zero and the', next business day there-
after as°Day 1, etc. Three business days must elapse following loan settlement
date to complete the rescission —period. ',A business day is any calendar day i
except Sunday and the following holidays on the dates established by Federal j
law: New Years Day, Washington's Birthday, Memorial Day, Independence Day,
' Labor Day; Columbus Day, Veterans Day, Thanksgiving„'and Christmas.
'
(1) No Disbursements. iThe Financial Specialist shall make no disbursement
from the fe rehabilitation escrow account, with respect to the borrower,
during the ;3 -day rescission period. In this regard, the mortgage payoff
check in connection with any, refinancing (referred to, in Chapter ll)
shall be dated as the day next following the 'last,day,of the rescission
period, with the amount of the check reflecting accred interest and
other charges.accordingly. The check shall neither be released by the
1
Financial Specialist nor endorsed by the borrower before such date.
(2) Prompt Recordation. In every case, the Financial Specialist shall re-
'
cord promptly, after loan settlement, the mortgage, deed of trust, and all
instruments necessary to perfect the loan security without waiting for
expiration of the 3 -day rescission period.
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7. CANCELLATION OF LOAN TRANSACTION BY BORROWER. The loan transaction shall be
considered canceled if theborrower's notice to that effect is given within
1 the required period. ,Notification by mail shall be considered given at the time
mailed as indicated by the postmark;notification by telegram shall be considered
given at the time filed for transmission; and notification by any other writing
1 shall be considered given at the time delivered to the Civic Center.
'8. ACCOMPLISHMENT OF RESCISSION. It is expected in most cases that the borrower's
rescission will be accomplished by his mailing, or delivery of the notice,
1 bearing his signature and date under the cancellation recital. However,
rescission may be accomplished'' by any written communication signed by the borrower
or a'telegram sent by the borrower.) Oral communications cannot accomplish
1 rescission, but they should be followed up by the Financial Specialist to obtain
written rescission.
1 9. PUBLIC BODY'S ACTION ON RECEIPT OF WRITTEN' REQUEST FOR RESCISSION. Upon the
Financial Specialist's receipt:of any timely, written communication signed by
the borrower; or of a'telegram',sent by the borrower, the,Financial Specialist
shall follow procedures for cancellation set forth in, Chapter 10.' In lieu of
the, borrower's signature in block F of Form CDR -7630C, Cancellation of Rehabili-
tation Loan for Residential Property, the Financial Specialist shall type in
block F the following:
1 "Borrower's signature on appropriate Notice: of Rescission, as required
under Truth in Lending Act"
a. Refund of.Application Fee'Within Ten-day Deadline Period. The law requires
1 that —it in 10 ays o receipt yTi t e F -financial Specialist of an appropriate
'written notice of rescission, the application fee': shall be returned to the
1 applicant and action to effect termination of any lien created by a mortgage
or deed of trust shall be completed. (See Chapter 17)
(1) Refund Check. The Financial Specialist shall make the refund by'check'i
1
drawn on the rehabilitation escrow account.
' (2) Release of Liens on Rescission. (Appropriate release of lien shall
U P
Ie obtained by the Financial Specialist submitting to the City Attorney s
1 office a;completed Form CDR -7630C.'
1 b. 'Scope of Rescission Procedure. The foregoing rescission procedures apply
only to rescissions requested by tlielborrower, within the 3 -day rescission
period,, as described in this chapter, and not to other cancellations as
described in Chapter 10.
,10. SUBMISSION OF COMPLIANCE STATEMENT AT POST SETTLEMENT. The Financial Specialist
shall submit a complet Form .CDR- Certification as to Compliance with
1 . Truth in Lending Act with the other documents required to be transmitted to the
applicant at post settlement in Chapter 11.
1 23-3 I'
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' REHABILITATION FINANCING HANDBOOK
DEPARTMENP OF CGMU M DEVELOPMENT
CITY OF IOWA CITY, IOWA
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TABLE 01' CON11-NES
IJt;1. GENERAL.
'I!R 2. PROJI?CT FINANCING AND ELIGIBLE' 11ROII-1CI' COSTS
'ER '3. ELIGIBILITY, REQUIREMENTS
ER•4. ASSURANCE THAT REHABILITATION WILL BP. COMPLETED
ER 51.' COSTS INCLUDABLE IN REHABILITATION GRANT AM LOAN `
Section L. Costs Includable in a Rehabilitation Grant
Section 2. Costs Includable in a' Rehabilitation Loan
ER 6'. LBIITATION ON^AMOUNT ,OF GRANT
E%7 LIMITATIONS ON;AMOUNT OF LOAN
Section 1.,`;Forgivabie Loan
Section 2'-; No Interest Loan
Section 3. Reserved.
Appendix1. Promissory Note Forgivable Loanl
,RESERVED.
:PROCESSING AND SUBMISSIONS FOR RF:1ABJUTAT'TON GRANT
Appendix 2.'Guide :Form of Letter to Applicant,Canceling
Rehabilitation Grant
ERr:10.. PROCESSING AND, SUBMISSIONS FOR A REHABILITATION LOAN
ERtll , `, `LOAN�SETTLIIvtEPIf i '' ,
CR 12' dt LOAN CLOSEOUT
ER 13 ,-TERMS..AND CONDITIONS UNDER WHICH REHABILITATION GRANTS AND LOANS:,,
MADE' �
E014 + 'i` (FUNDING OF INDIVIDUAL REHABILITATION GRANTS AND LOANS AND MANAGEMENT
.OF REHABILITATION ESCROW ACCOUNT .i'
:2.15 PROPERTY APPRAISAL
Rv16 NUMBERING GRANT AND LOAN' APPLICATIONS
R17. :'APPLICATION FEES"'
R,'iA. DETERMININGWORKTO BE -DONE 1VIT11I2EIIABILITATION GRANT AND LOAN
�.CONIRALTMG FOR, REHABILITATION WORK .t
1R"20: 'INSPECTION'OF'REHABILITATION WORK
i
:R_21 RESERVM- _
R22 APPLICANT'S INCOME,
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:R',23�TRUTTi IN LENDING'
RECEIVED
i d, APPROVED,:.;! h t
BY'TfE LEGAL DEPARTMENT
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Rehabilitation Financing Handbook
9/77
j. 'Rehabilitation Cost. The total cost of repairs and improvements and other
costs for rehabilitation to be incurred by the applicant that are includable
in a rehabilitation grant and/or loan whether or not financed in part with
funds from other sources (see Chapter 5).
k. Rehabilitation Financial SeciaZiat. M employee of the City's Department
o Housing anInspections ervices charged with the duties of administrating the
Yinancial aspects 'of 7ehabiiitation;-including interviewing,; eligibility
determination testing, verification, loam or grant application processing,
loan closing, escrow management, and final disposition accounting.
,1 ,
1Rehabilitation Review Board. An administrative board comprised of the
'Director o the Department of Housing and Inspection Services, the Rehabili-
tation Finance Specialist,;' the Rehabilitation Supervisor,,, and a member of
r: the City's legal -staff all': of whose function shall be: to review and approve
or. disapprove applications.:for City loans' according' to the procedures as
set forthherein. ''14 Other board members will be allowed as appropriate.
m Rehabilitation Standards
n Conoentrated'Rehabilitation Area. Requirements!of the Minimum Housing
Stan r s: pter 9.30 0 e Municipal .Code and any property rehabilitation
requirements,'established'in an Urban Renewal7TTan adopted by the City of
',Iowa City which i applicable,to the properties to remain in the project
area
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RESOLUTION NO.
RESOLUTION AUTHORIZING TIS CITY OF IOW4 CITY, IO["W,
TO PURSUE A HOUSING REHABILITATION PROGRAM.
WHEREAS, the City of Iowa City is empowered pursuant to Chapter 403,
Code of Iaoa (1975), to formulate a program for utilizing appropriate
private and public resources to eliminate slums and prevent the develop-
mynt or spread of urban blight and to encourage urban rehabilitation,
and
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WHEREAS, the City Council has budgeted two years of Coimumity Developrtent
Block Grant funds to engage in a Housing Rehabilitation program, and
WHEREAS, part of said program involves grants, forgiveable loans, and G
low-interest loans as rrethods of financing urban rehabilitation.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
IOI�% CM, IOM, that the City Council has approved the above, program and
methods of financing and authorizes its impluentation as outlined in the
Rehabilitation Financing Handbook, including amendments.
It was moved by and seconded, by
that the Resolution as read be adopted, and upon roll'call there were:
AYES: NAYS- ABSENT
Balmer
deProsse
Foster "
Neuhauser
Perret
Selzer
— Vevera
Passed and approved this day of :1977.
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Mayor
ATTEST:'
City Clerk
RECEIVED &'APPROVED
BY THE LEGAL DEPARTMENT.
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Rehabilitation Financing Handbook
1 1 4177
'I b. 'other Coats Related to Grants and Loans. With the exception of '!those costs
set forth in paragraph 3: a. above, there are no other costs related to the
z
processing of a rehabilitation grant application that may be included in
charges arising from the processing of al rehabilitation loan and/or grant
application that may be eligible project costs. Such costsaredescribed
in paragraph 3i b', 1 below.
' Loans on'Residential`Pro ert The City may pay for, and advance from
project funds, t e costs or credit reports, appraisals, abstracting,
and processing fees.-- Said advances shall be paid
back to the City from the loan proceeds at the time of loan closing.
Advancing Funds forllneZudable Costs. As necessary, the City,
w
sEll advance project funE to--pay—Tor processing fees for loans
and charges for title reports and recordation fees:
y
' 1 Reimbursement to the�Cit or Advanced Coste_. At loanclosing,
e City s}i 11 ream' burse itsel ran t etrehabilitation loan
escrow account the project funds which were advanced (see Chapter 5,
"I ,Section 2). Funds to cover the reimbursement are'on deposit in
y
the -rehabilitation escrow account by inclusion in the loan amount!
or by collection from the applicant.
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2 When Advanced Costs Become Eligible Pro'ect Costa. With the
exception of tees,collected in advance from the
s
,application
' y applicant, and'to the extent that they have been incurred 'I the
"
< „ types of advanced costs noted above become eligible project costs
'> whenever a loan application is disapproved, or the loan is'with-
a°,'i ut' drawn or canceled, as provided for in Chapter 10,1'paragraph 6it
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•
CIIAIY ILR 3. ELIGIBIL11Y RI!QUIRIMI:NFS
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1. ,GENERAL. This chapter sets forth eligibility_ requirements as to the property,
ET tfe applicant for a rehabilitation grant and/or loan. A rehabilitation
grant and/or loan may be made,only',with respect to a property located within:
the concentrated rehabilitation area(s) as approved by the City Council. The
property must need rehabilitation to meet the Rehabilitation Standards.Neither
an indiiridual'family nor a-structure may participate more than once.
2. REQUIREMENTS APPLICABLE TO APPLICANT FOR A GRANT. To be eligible for a rehabili-
tation grant, the applicant must be;an individual or family who owns and occupies
a, one- or two dwelling unit residential property, or is a purchaser-occupant of
such a property under a'land sales contract.
3 ..-REQUIREMENTS' APPLICABLETOEVERY LOAN.' In order to be eligible for a rehabilita
ion low';` the ,applicant-must<evi ence adequate, capacity to repay the loan. A
rehabilitation loan cannot be approved if the applicant's record 'shows ;a disr6-
garda for former obligations', or if there is a clear inability to make the payment
•.that will be required; In;addition; depending; upon the type of applicant and
property, involved, the requirements as described below, also apply.
4 REQUIREMENTS APPLICABLE TO LOAN FOR RESIDENTIAL PROPERTY. An applicant for a
re alit
aeon loan on residential property must e-Ne—owner, of the property,
An ,applicant fora 'rehabilitation loan who may. be eligible for a rehabilitation
grant as shall lie advised and listed in applying for a rehabilitation grant, as
well as fora rehabilitation loan, if needed-to supplement the grant funds.
u 5 ,LAND`. SALES OONTRACT. ,;The term "land sales contract" refers to,any transaction,
;1 regardlessro, t e;nomenclatur6:by'which it is known,,in`which the purchaser
}' ocaipant;obtains fee: -title oply'if'he,completes 'a series of installment, payments r.
over:'a'term of yearThe form of a land sales contract may vary according to
the circumstances of each sale:• F:
ita Re uirements.•::In order for a purchaser under a land sales
contract-;to a eligible for a rehabilitation grant to cover rehabilitation
�y sts; a11'6f zthb; following minimum requirements must be�met.
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1;(l) .The 'contract shall be'a written, legally binding, instrument involving
v, property that after rehabilitation will be all residential in
character
(2) The seller of the property must hold fee title to the property'and
while the contractus in good, standing, must be unable to use the
property for collateral or to,convey 'the property to any other 'party,
unless,such use ,for collateraY or conveyance of fee is subject to the
land sales ,'contract.
The' for egoing•provisions, however, shall not affect the right of seller
to mortgage`,the,property as, long as the amount of such mortgage does'not
exceed the amount of the seller's equity in said property and as long
„ as'the monthly mortgage payments and interest rate are no greater in
amount than the, contract payments.
n
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�i Rehabilitation Financing Handbook `
9/77
CHA171'ER 4. 'ASSMANCE' 11M PTIMILITNI-ION WILL BE CD111L713)
I' 1. GENERAL. In some instances the rehabilitation cost may exceed the amount of
reia ilitation grant and/or rehabilitation loan. In such cases', rehabilitation
I grant/or rehabilitation loan will not be made unless the applicant can provide
whatever additional amount is' needed to assure completion of the work so that
the; property wiil.,meet at least Rehabilitation Standards. If the rehabilitation.
grant and/or ,rehabilitation loan will not be sufficient to pay; for the 'rehabili-
I tation cost.to meet at least the Code,,the Rehabilitation Finance Specialist
shall not approve the rehabilitation grant and/or rehabilitation loan unless
theapplicant can furnish supplementary funds sufficient to complete the work.
,!2. GRANTS AND LOANS ON RESIDENTIAL PROPERTY. If the applicant for rehabilitation
grant or re ilitation loanon residential property is obtaining a supple
I, mental loan,:neither',the rehabilitation grant application nor the City rehabilita-
tion loan application shall be approved until the Rehabilitation Finance
Specialist has secured evidence that the applicant has obtained an adequate and
satisfactory.,'supplemental loan commitment. When the loan will be obtained from
a:reco gnized'lending institution, evidence furnished by the Rehabilitation
FinanceSpecialist'shall.consist of a signed,'
bona fide written commitment,to
make I the',loan; fcr the purpose of the rehabilitation work. The loan shall be
I °
in an amount which, when added to the; rehabilitation grant and/or rehabilitation
loan and,anv'other funds the applicant will furnish, will be sufficient for
completing the required rehabilitation work. When the applicant is furnishing
I supplementary funds from sources other than a recognized lending; institution,
evidence that actual>funds are available shall(consist'of verification and
FinanceSpecialist.that the, applicant can
ehabilitation escrow account'(see Chapter 14)
Rehabilitation Financing Handbook
4177
CIIAIYI'I:R 5. COSI' INCLWABLI: IN RIMBILI'1'A'I10N GRANT'S AND LOANS
SL'CHON 1. COSI'S INCLWABU IN IMIABIL1TATI0N GRANf
1. ,GENERAL. A rehabilitation grant may be made only to cover the cost of rehabili-
tation necessaryto make an owner -occupied one- or two dwelling unit residential
' property, conform to. standards for safe, decent and sanitary, housing as specifically
required by, the Rehabilitation Standards, and'other'costs as provided'.in this
section. As ''a result of the rehabilitation work financed, in whole or in part by,
a. rehabilitation grant, the property must, at a minimum, conform' to the Rehabili
tation Standards. Rehabilitation grant funds 'shall 'be used to achieveeconomical
and practical compliance with the Rehabilitation Standards.
�!2 INCLUDABLE COSTS. Costs includable in a rehablitation.grant are the costs of:
" ,meeting e;;.requirements of the Rehabilitation Standards; correcting incipient
:violauons`:(if permitted, see Chapter 6); and building.permits and related fees
as:"described, below:
a Re"uiut r Code. Mien necessary to meet a specific requirement of the
Re a ilita
aion Standards, a rehabilitation grant may be used; to the extent
necessary forNj:
(1) Tlie'Irehabilitaiion or removal ofelements of the dwelling structure,
"1 :inc luding''basic equipment, and of other, improvements tol'the property
such'as-garages;:. fence s,:,steps,.walkways; and; driveways; The term
I
Rehabilitation Financing Handbook
4/77
exists) if, at the time of inspection, it is thought that the physical
condition of an element in the structure will deteriorate into an actual
violation in the near future (such as within a year or two).
(1) Examples of Different Types of Incipient Violations.
(a), A furnace may be expected soon to become inoperative or hazardous
because -of its'age, condition or use. A rehabilitation grant may
provi&..for the replacement of the entire furnace.,
(b)', A roof has one or more small leaks that can be patched at low
cost;'; but the roof probably will continue to develop leaks.A
rehabilitation'grant,could provide for replacing the entire roof.
(2) Re ortin Requirements. The property inspection report ,should identify
the -incipient -violations to establish the basis for providing for
corrective.work in the grant. For enforcement purposes, it is
necessary for actual -violations to be identified and listed separately
from incipient -violations. However, the amount of rehabilitation grant
y n
to be made may cover both actual and incipient violations.
(3) Limits on Incipient Violation Correction. Property owners eligible for
e rehabilitation, grant may receive allitional monies for incipient
violation correction not in 'excess of 25% of `the est imated'(and'verified)
cost,'of, correcting active Rehabilitation Standards, energy conservation
measures,;and'.fire,protection devices l: -(L e.,:,if a structure required
$4,000 to correct active'Rehabilitation Standards violations, energy
a,jconservation:measures and fire protection devices and; if the owner
.... qualified:for the grant, not more than 250 or $1,000 could be granted
for'incipient correction).
e. Removab of Architectural Barriers. A rehabilitation grant may be utilized
aomodi. y,, alter.. or replace, components of astructure that in their present •;
state oIrI:by their absencelimpede, physic ally limited occupants from enjoying
+r` the"full':!benefits('of comfort and livability, normally experienced by non-"
handicapped dwellers. ,The"!construction contract ,shall specify as applicable,
Yramps; wider doorways, lower plumbing fixtures or light controlling switches,
installation of secondary toilet rooms and/or laundry facilities and other
items specific to:a given'' structure and its occupancy. The Rehabilitation
.''staff should `exercise prudent judgement in selecting construction options
„to, rovide ready access at'moderate cost.
f. iBuild'!'Permits and Related Fees.. A rehabilitation.grant may provide funds
to cover- a cost1.o uiling permits and'irelated,fees that are required
to car']y-out the;proposed'rehabilitation'work. However, since the construction
contract'documents will require the contractor to pay for them, this cost
ordinarily"would ,be included in'the contract amount=(see Chapter 19):',
'
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Rehabilitation Financing Handbook
4177
3. : COSTS NOT INCLUDABLE.Except as otherwise provided in this section, a rehabilita-
tion grant shall not(provide'for:
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owner may�wish to per fol
of the:: cost of!',cor'recting Code,, and
xuction,Specialist ehall'prepare-a work'
under paragraph',5,',to docwnent.,,the
1
Rehabilitation Financing Handbook
4/77
Nnnities: In the event the Corgi.valle loan recipient(s) fail to pay, the
principal, or a portion thereof,,whcn duc, the whole principal amount of the
lien shall become due and payable at the option of the lien holder without
«notice. I,'1'he forgivable'. loan recipient(s) in case of suit thereon,; agrees to l
pay attorney's fees.
b. 'Applicants Wyears of age or older or who are disabled:
pl
(1) The `lien provision of 4a above shall not applyandthe grant shall be
given in place of lien or: repayment; obligation:'
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CI W''1'IiR 7. '' LIMITATIONS ON MIOJNT OF 110: LOAN
Sli(:1'ION 1. FORGIVABLE LOAN
1. GENERAL. This section sets forth theeligibility in regards to the property and '
ti applicant for alhousing rehabilitation forgivable loan.
Forgivable Loans are available only in conjunction with a Rehabilitation Grant
f. to the elderly and handicapped. ,The property must be in need of repairs which are
necessary to'meet Rehabilitation Standards, in excess of the maximum Basic
" Granf amount of $5000.
e'2:ELIGIBILITY. To be considered for a Rehabilitation Forgivable Loan,
Ithe ;applicant ,mus t a incompliance with the following criteria:
a � Be the owner-occupant of a'single family dwelling unit structure which is
in the Rehabilitation are a'designated by,the 'City Council who is:
" (1)-'60years of age or older; or
(2) receiving Social Security Disability benefits.
eligible for the Rehabilitation grant determined on the basis of income
acid a ssetlimitations. (see Chapter 5)
c The homestead nwst require more than'the $5,000 grant ceiling to meet
minum�m';rehabilitation standards..
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3..;ASSURANCE THAT�REHABILITATION WILL 'BE°COMPLETED. ',41
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a n some instances'the rehabilitation cost may exceed the amount of,a forgivable
!' Goan and;' rant :In such cases a rehabilitation grant and forgivable loan
g
is
will not.be made unless the applicant can provide whatever additional amount
d!x,� is neededto assure completion of:the work so that the property will meet
at.least the Rehabilitation Standards.
,
,r •' , ,' �
Vii;
If the applicant for a forgivable loanon residential' property is obtaining a
supplemental loan, the rehabilitation grant and loan application shall not be
u t approved until the,staff;has secured evidence that the applicant has obtained
; I?an'ade uate and'satisfacto su lementaI loan commitment.
q r pp
4: 'LIMITATIONS ON AMOUNT OF FORGIVABLE LOAN. The amount of -a forgivable loan that an
=' applicantimay, receive ll e'limited by the following:
"sig
a ;,The difference between the actual (and approved) construction costs minus the
$5,000 rehabilitation grant.
b. ' $5,000.
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Rehabilitation Financing Handbook
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I
TERMS AND CONDITIONS.
al. p6rgivab16 loans shall be secured by a lien against the property.
b. -'Amortization.
(I) If the rehabilitated',property is sold or transfers ownership prior to
the first year anniversary ofthe loan, 100% of'!the loan principal shall'
be called due.
(2) If the rehabilitatedlpropertyis sold or transfers ownership prior to
the:second year anniversary of the loan, 50% of: the loan principal
amount shall,be called due. The remaining 50% is forgiven.
(3). If,the rehabilitated property, is sold or transfers ownership prior to
th'e third year anniversary,. 25% of the loanlprincipal amount shall be
called due. The remaining 75% is forgiven.
(4) 'My sale or transfer after the third year anniversary would mean that
100%;',the loanprincipal amount would be forgiven.
C penalties'.'In the event the forgivable loan recipient(s) fail to pay,- the
principal; .ora portion'thereof, when due,. the whole principal amountof the
;lien shall become due and; payable at the option of the lien holder without
notice .';The forgivable'loan recipient (s),in case of''suit thereon, agrees to
pay attorney's fees.
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JM' 01� TI U7 LOAN
r LOAN ON RESIDENTIAL PROPERTY. The maximum loan on residential;;
e t e,lowest amount' etennined'using the following three`
rdless'of whether the loan is secured or unsecured.
approved construction costs.
r dwelling unit.
nhich when added to any outstanding indebtedness related to the
:reates:a total outstanding indebtedness which does not exceed:
>ercentof the 'sum of asis value of the property and
imatedrehabilitation costs up to and including $25,000
iercent'-of the next $10,000, and 80 percent of any balance
:he sum that exceeds $35;000.
CBZLZTYJ To be considered for a REHAB I Loan, the,.applicant must
following criteria:
317
r occupant of an -all residential, structure containing not
wo (2);dwelling!units and 'located within the':Rehabilitation Area
lesignated,for service'by the City Council.
,k
1=''ddjusted gross income"(see Chapter 22) not in excess of the
000 for a L person household _
375' for', a 2' person household
75O.for:a 3 person household
250 fora 4,person household
125 fora 5 person household
000 fora 6 person household
875 fora 7,person household
875 for'an 8+ person household
assets which do not exceed those shown on the following table
which is based on family, size and income, ,'and apply except when
4
is: handicapped ''OT elderly.
E'
sion of Assets:' whenan applicant has assets which are ini
of' the maximum';liquid asset level, the,excess,amount may be
d by, applying chem toward the actual cost of the `rehabilita-
f'the;property., The.excess assets must be escrowed to the;
�f Iowa:City to;pay,for 'the rehabilitation.
7-4
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'
IO., 12 Fl to
Bou
S.Nv to
10,000
J 15,000
SO,D141
10,00
'SO.WO
-O.ON
10.000
MIND
3,499.99
S,SPO to
1,300
1 S. OW
2D.OH
20,000
20.00
10,00
1010001
:0,000
3.909.99
6,001.
9,0"
14,250
10,000
20,000-
20.00
:0,00
/0, DO 1,
/0.000
6,499.99
6,300 le
8.500
1],300.
19,00
10,00`
'10,000
20,00
10,000'1
10,0(-0
6.909.09
2,00 t9
8,000
12,350
18,00
20,00D
'2D,000
10,000
20,001
20,000
2,499.99
?2,500 to
,].500.
11,00
12,00
19,000
10,000
:0,000
20,000,
.240011
999.99
8, 000 P
2.00D'.
11,250
.16,00
.'18,000
19,00
20,00
20,000
10,000
0.499,90
8,5"to
16.500
10,50
ls,00
17.000
13.000 16,000
19,00
20,00
20,00
.,3.999.99
L'I
)9,000 to
6,000,
9.250
14.000
16,00
12100
18,00
19,000
20.00
9,499.99
,.9,30 to
$.W0'
'9,000
13,00
IS,000
16,00.
11,000
111000
191000
;9.999.99
,..
10,000 to
s,0o0
8,250
12,00
14,000'.
15,00
16,000
12,000
1s.00
10.499.09
10,s" 16
42,500
11,000
13.000
14,000 14,000.
15,000
16,000,
12.00
10,909.99
X11,0016
-0,t0
10,00
12.000`
13,00
14,000
15,000,
16.00
13,49!.99
11000 w
-
10,000
Il,00O:
I2,p00
0,000
14,000,
IS, 000
11,9x9.09
12,00 to
10,00
10,000''
. 11,00
11,00
13, D
14,000
11,499 91
I
lis" to
.'.��
I.
' 10,00
10,000
10.00'
11,000
11,"DI
11.00'
Il, 999.99
13,00 to
]0,00
ID,D"
11,000
,1],000',
13,499,91
1
13.300 to
'
10,000
10,0"
11,00
14,0" to
10,DDO
10,000
)Ls99, Iv
14,300 to
'L'
10,"0
u,99v 6
'
13.0" m
Iti,"o,
13, N9.ff
IS.Sw to
10.00-
Is,929.99
�1L.
16,0""
1
10,00.
,LSH 99
I6s00 t010,00
I
16.9]9.99
X12,00 a
10,000
12,49x. 1
I2.S" m
10,"0
I>.0'l0 99
Rehabilitation Financing Handbook
4/77
ASSURANCE'. THAT REHABIM-ATION WILL, BA' COMPLETED.
a ;Rehabilitation costs may exceed the amount of the program's loan and/or
grant if the applicant provides assurance that the additional amount needed
'to assure 'completion 'or the work required to meet the Rehabilitation
Standards will be borne by the applicant.'
b. e If the. applicant obtains a supplemental loan commitment, the staff will se-
cure evidence that it is adequate and satisfactory prior to approval of the
rehabilitation grant and/or loan..
ABILITY TO REFRY. An; applicant for a R13HAB I Loan shall he considered to have
= an adequate;:ability.to repay the loan if after the loan is made, the following
tests'can'be'met:
a A'mazrimum,expenditure for housing expenses shall not exceed 35% of the
adjusted; gross income of the household (see' Chapter 22). Housing expenses
include I,
(1) Principal and interest on mortgage.
(2) Principal payments on City of Iowa City rehabilitation loan.
(3) Taxes
I(4)� Utilities. '�
„
(5) Hazard insurance premium.
(6) ,Maintenance
°;
minunum}of $2.00,per,'.person per day must remain available for food,
clothing,'.medical expenses'; etc.; after the,'fixed monthly expenses for the
%t4,,Ffollowing„have been deleted'from the adjusted gross income:
��Fitrr(1) lousingexpenses t(see:5.a. above)- �'
s
I
I'� r (2) "�Autoinobile payments(CDR-6274;; line G-1)
:(3) Lifeinsurance lo' an.(CDR=6270;' line.G-2)
I 41L
(4)' Notes payable (CUR 6270,;line'G-3)
4 t "(5)'.'Mort'a&s or_land contract' payments i for other real estate (CDR-6270,
r
(6) Monthly installment-credit accounts (CDR-6270, line G-5)'
(7) Life;and health insurance premiums (CDR-6270, line H-2)
s
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Q"FER 9. PROCESSING AND SUIMISSIONS POR REIIAEILITATI0N'GRAM
1. 'GENERAL. (This chapter contains an outline of the functions to be performed by the
Staff in connection with a rehabilitation grant, and 'sets forth the policies and
Procedures to be followed'. by the Staff%in preparing,process,, and approving an
i ,application"for a rehabilitation grant, and in canceling an approved rehabilitation
pp
grant.
i
,12. OUTLINE OF STAFF FUNCTIONS. Listed below are the functions to be performed by
,the Staff,, in, connFct �ion with a rehabilitation grant. As applicable to each of
V:�' the listed functions, 'cross -references are given to other chapters that contain
the substantive requirements with respect to that function.: Items a., b., c., and
d.'are'required; regardless of. the source of funds to be used to finance the cost'
`lof'rehabilitation. Items e. through y.;apply ''to a rehabilitation grant supplemented
by a;'rehabilitation loan are included in Chapter 10.
Functions: Cross -Reference
a.,,Interview'and advise applicant on the general
rehabilitation..objectives`of-the ;project,.and
ahe,purpose'and meaning of the Rehabilitation
� 'standards.
I
b Advise the applicant on the availability4nd
,.benefits `of a rehabilitation grant and other City
and private programs and resources. for financing
Chapter 18
qA?, c
Jnspect the property
P
,44Y
.
Prepare a;work write up, andlcost estimate. of the
rehabilitation work needed`to meet the Rehabili
n {� .tation' Standards ,', Chapter 18
'ra ! a licant fora Chapter 3
f�,;. e Determine`` eligibility of, the pp P
��< ,
}j' J1' rehabilitation grant
Paj' ;Evidence that ownership of the property has
been verified and'=shall be'retained in the
i""r.
,A, ,property; files This shall include the
s'15 citation frau theland records or other
Y'
official'record;from'which',the verification was
made
If:applicant isioccupant-purchaser under a land
1 F
• ! f ,
sales '6 tract 'obtain a dodmientation to
support eligibility. Chapter 3
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Functions
Cross -Reference
f. Verify applicant's income, housing expense
and assets.
Chapter 6
g. 'Determine that work items in work write-ups
conform to purposes for which rehabilitation
grant can be used.
Chapter 5
h. Establish amount of grant applicant may receive,'
Chapter 6
i. Be assured that as a result of the, rehabilitation
grant,•the property will be rehabilitated at a
minimum to meet the Rehabilitationsstandards.
If thea licant is eli ible for and needs_a
" J PP 8 for,.and
loan, assist him in filing the
application.
Chapter 10
k ;Advise the applicant of the conditions under
which a rehabilitation grant is made.
Chapter 13
J. construction contract docuaents
and
.Prepare
+i tain contractor's proposals for rehabilitation
a., work andreviewproposals
received.,
Chapter 19
Prepare Form CDR 7660; Rehabilitation Grant;
(original ;and! 1 copy). and-.obtain,applicant's
j
signature
4 t�@'� r�k.y �h,
Ix.n Approve Form CDR 7660, if all requirements are met.
'�
o Assign application number and enter,,
on approved
rig t�7' 'Form CDR and,' all related'documents.
Chapter 16
.7660
p' -Prepare promissary note for loan lien if
.,,applicable Obtain legal opinion and recordation.
Prepare. contracts and CDR -7660 forsi nature s
Bei q P 'g � ),
'obtain`applicant' "s endorsement"" and re nest
n �'i,, 4
moniesfor grant in rehabilitation escrow
account.i?'
Chapter 14
ri r"r Assist applicant in:execution of.construction
contract, and deliver,to selected contractor.
Chapter 19
s` Assist applicant in issuing proceed order for
construction work."
"
t .,Inspect rehabilitation as it progresses.
Chapter 20
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4177
Functioiw Cross -Reference
r,
u. Make final inspection of completed
'rehabilitation work. Chapter 20
v.. :Issue Foam CDR -7645. Chapter 20
,
w. "Obtain from contractor guarantee:of work,
`
' manufacturers' and suppliers' warranties, and
9s
release of liens from general contractor, sub -
4,1 contractors, and !suppliers prior to final payment
for rehabilitation work.
i, x Prepare Statement of Disposition of Funds.
y Closeout rehabilitation escrow. Chapter 14
}� z.r•Make follow-up inspection. Chapter 20
`
3 PROCESSING AND APPROVAL OF GRANT APPLICATION. Processing by the Staff of
`«^r an;application.for a rehabilitation grant consists of the completion of.the
„ functions listed below; items a. through c., assembly in one file of the Form,
1 CDR' -76% and allsupporting documents and the review of'the file to determine
rr approval.
`a
Preparation'of Form. The Rehabilitation Finance Specialist shall prepare
and 1 co for thea applicant based; on
form CDR -7660_.,( g py) pp , information
-,(original.,
+°P furmshed,by the applicant'and obtained by'the Rehabilitation Finance'Special
,isu from other sources, as'documented in the file. ''Every space provided
tan
haloril be madeoroundedCto!the nearestbdollar.1t'If no moneysisfinvolved for
entry„fora.particular,application,,the ,entry shall be "none". Review and
approval by the Rehabilitation Finance Specialist of Form'MR-7660 shall`be
form:.completed in this�manner.�
:;'
If for
4. r b Applicants: Purchasi Under a Land Sale Contract. an application
°I are abilitation rant is wit re to an occupant -vendee under a land
g
sales contract or;similar, g ment, the file shall contain documentation
arrangement;
to support the requirements in Chapter 3.
+� « TMc Approval of Application for Grant. The Rehabilitation Finance Specialist
1 , i
„ ,
S hall approve a Form CDR -2660 by obtaining the applicant's signature in
'
�+ ;block I, and by siigning,blocklj, on both the:original and the copy ofr'the
form ; If the rehabilitation grant alone is sufficient to rehabilitate the
iproperty;''or. if 'the rehabilitation grant is:to be supplemented by funds
1Tro"
other than a rehabilitation loan and the Rehabilitation Finance Specialist
is' assured'that'the property will'be'rehabilitated to meet the Rehabilitation
$tandards',(see Chapter 4),Jthe rehabilitation giant is considered to be
approved', 'an the;:Rehabilitation Finance Specialist may notify the applicant,•
1i and proceed withl the remainder of the functions for which it is responsible
in order to complete the rehabilitation work.
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(1) If a rehabilitation rant is to be supplemented by a rehabilitation
oan,, a grants all_not> a consider apped�rovec anti a tear approval by
t e lender of the application for a rehabilitation loan approval shall'
consist of a letter of commitment (either, from the City or private
sources)., In this case,', the Rehabilitation Finance Specialist shall not
advise the applicant concerning, approval of the rehabilitation grant,,
nor 'proceed 'with any of the rehabilitation work, until the reservation
of loan funds has been received.
(2) If the Rehabilitation Finance S ecialist etermines that a Form CDR -7660
a�ro
cannot a ved,:a written statement odt e reasons fort e
determination ' shall be put in the applicationfile by the Rehabilitation.
Finance; Specialist. An application number shall not be assigned by the
Rehabilitation Finance; Specialist to a'Form CDR-7660`it'does not
approve.
d. t.,Ibe Rehabilitation Finance Specialist shall complete CDR -7661 "Promissory
Note "for: Rehabilitation Grant" original plus: two .and shall transmit ,
original plus one'copy to City Attorney's office for opinion.,
Attorney shall render a'written legal opinion regarding the adequacy of 11
the Pr omissory, note, shall' record same and forward the two copies of his
topinion;plus the. copies of'the promissory note to the Rehabilitation Finance
Specialist:
The Rehabilitation Finance Specialist shall retain one copy of the opinion
plus=arcopy-of the promissory note in the applicant's file. :Ibe other copy
of the promissory note and the legal opinion shall be forwarded to the grantee.
e
Required- gions. 'For:an,.application for a rehabilitation grant that is
not to a supplemented by a rehabilitation loan, the Rehabilitation Finance
Specialist promptly shall submit the completed approved c� of Form CDR -7660
t0
llirector4of Housing and Inspection'Services
s
it�The original of the completed approved Form CDR -7660 shall be, retained !by the
Rehabilitation` Finance' Specialist with the supporting documentation in the
application, file.� With the, exception of the submission ofForm CDR -7645 to
;the above address'at the time of -
the completion of the rehahilitation.work,
,there-are'no other required submissions for a rehabilitation grant that is
not supplemented by a rehabilitation loan.
Foranapplication for a rehabilitation grant that is,jo be supplemented by
a,loan,'the completed _original and'the copy of Form CDR -7660 shall accompany
the.Fo:6 CDR -7630, submitted by the Rehabilitation Finance Specialist to the
Lender (see,' Chapter,, 10).
pP S
4 ;.CRANT-CANCELLATION. Ana roved rehabilitation rant may!; need to be cancelled
s.,. ,because,the;applicant has ',requested cancellation or is unwilling or unable to
:1 proceed with,; the rehabilitation work, or, for other reasons.
1
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4/77
I
a. >Cancellation Letter. To cancel an; approved rehabilitation grant, the Rehabili-
Finance 1peciali.sf shall Prepare a letter in accordance with Appendix 1,
jion
and distribute the letter as follows:
(1) Original to`applicant.
(2)' One copy to the property applicationfile.
(3) •For 'grant only cases,' one copy to:
L.
Accounting Department
City of Iowa City, Iowa
b.1 ..Return of Anda. If funds for the 'canceled rehabilitation granthavebeen
':deposited;to the'rehabilitation escrow account,, the Rehabilitation Finance
.
,:Specialist shall draw aunt for ':check on that accothe amount originally
deposited', payable to thel:source from which the funds were obtained.
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3NDIX 2. GUIDE FOIN OF LEITER TO APPLICANT, CANCELING REHABILITATION GRANT
(Date)
IJ
+ .Address and Zi .of A licant
r P rr
i
Re--- Rehabilitation Grant $
Application N mber
j,Date of,'Approval.
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ieasdbe:ddvised�-thati,the Rehabilitation Grant identified above has been
ed effective this 'date; ;for, the,following;reason(s):i'
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t✓ 1 KNil.
x
Sincerely
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CIIWITR 10. PROCL'SSINC AND SUBMISSIONS FOR A RUTAB LTTATION LOAN
1. 'REHABILITATION LOAN ON RESIDENTIALPROPERTY. The material under this heading is
in connection with a_rehabilitation-loan on residential property that by itself
or in conjunction,with funds to be,provided by the applicant other than a
rehabilitation grant, is sufficient to accomplish the required rehabilitation.'
a.'Outline '''of Rehabilitation Staff Functions: Listed below are the functions,'
to be; performed by the Rehab il Mation Staff for a rehabilitation loan on a ;
residential'property. As applicable to each of ,the listed functions, cross-
references are'given to other chapters that contain the substantive requirements
"for.that'-function. 'Regardless of the sources of funds to rehabilitate a
property';` the Rehabilitation Staff, shall assist the property owner by per?
;forming functions (1) through (7)?listed below:
I ,. I
Function' Cross -Reference
(1)!jnterview,and, advise the property owner
„ on,the,general rehabilitation objectives for the
,project area; thejpurposes and meaning of the
Housing Enforcement Ordinance."
0 (2) Advise the property owner on the availability
and'benefits:of a,rehabilitation loan,', and on
other Federal and• rivate ro'rams and resources
for financing rehabilitation.
r (3) Inspect the property. Chapter 18
J
Prepare a work write up and cost estimate
i(4)'
o£ the.,rehaliilitation''work.' Cha ter 18
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(5)'� Financial interview by Rehabilitation Finance
Speciahsit' 'to determine eligibility of the
applicant for a rehabilitation loan. Chapter 3, 7
{6) = lletermtne that itemsl.in the work write-up
"conform to purposes for whicN'a rehabilitation
" loan'['may.be'.used. Chapter 5
(7) Advise applicant concerning the conditions
u • u n der which a rehabilitation loan is made. Chapter 131
(8) Obtain following information with respect
I to the applicant for all residential Form CDR -7639
properties. (or equivalent)'
(a) ;,Verification of Mortgage or, Deed of Trust
from each holdei of lien'secured by the
" property-
,
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!
' ' (b) Credit report from recognized credit
bureau:.
(c) Verification of employment. Form CDR-7633'
(or equivalent)
I�I'
>
(d)- Statement of verification of other
`w
earnings.
a
�r ? (e) Verification of deposits. Form CDR-7634'
'M
(or equivalent)
e
(9) Make a prelimirary evaluation 'of ability of
.,
applicant tolrepay indicated oan amount.
'
r (10) final consultation with applicant on preliminary
ger
6'
work; write-up and cost estimate to reach agreement
r`
? on work to be done within applicant's ability to
" repay. Chapter 18
(11) Prepare,cent ract specifications. Chapter 18
(12)Request as is. appraisal.
! 13)': Let construction bids, assist applicant in
selection of `acceptable contractors)
Chapter 19
'W:
Ivy°.it .� '�' '.,•
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�
�:
(14) Take "before'„ pictures
# is (15) Assign CDR loannumber andc set up separate
„ itx7 rr file for each case
Chapter 16
(16) Deliver caserto Director, or submission
f
to
i, r,
"Review:
Rehabilitation Board for conditional
commitment "Include the; following papers and/or
forms
As iappraisal
Two (2) copies of accepted bid.
!"Before".,pictures.,
F
t _
(d) �.Copy.of Code violation letter and cost
!'
estimate.
hlf t ( S I I
(17)
14`%flt Order title conmritment or search on property,
iflapplicable'. �I Chapter 11
I::
(18) Complete CDR 7630 or CDR-7632.
t I t t
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19 Determine that through the rehabilitation loan
( ) b
the property; will conform to (lousing Enforcement
Ordinance requirements. If additional financing
is required; assist applicant' in'obiaining,,the
needed funds.
(2 0)Deliver to Director for submission to Rehabili-
•tation Review Board for firm commitment (loan
approval). ;Include the following as applicable:
(a) CDR -763Q or CDR -7632.
(b) 'Credit Report (original).
1
ul..
I.'
(c) ',Verification,of Deposits) (original).
'
'(d) ,,Verification of employment(s) (original).`
I
(e) -Verification of Income from Other.
Sources`;(original).
'(f) Verification(s) of Mortgage or Deed of
+ Tiiist' (original)
°
Co of Deed.
(g) PY
(h) '.Current:balance sheet, operating statement,
;and/or:most recent copy of tax returns if,
„
.
1 applicant self employedit
(t)' 'Title Search report
:.
,.
v`ti,t,q (21);When the firm commitment has been received by
the'F�nance,Specialist advise. applicant and loan
f the si ni
y servictng'�agency and set date orI g ng
n it
of the final can papers '
;
pp
;Ir (22) Along�with.20(a) through (i), include for the
retention'at closing;the.following:
I
'71
Hazard insurance policy on property.
" (b) ."Copy of payment schedule breakdown.
(c) ,;Copy of; agreement on REHAB I loan."
(d)' Debtor's life insurance policy.
A.. p .
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lechabilitation Financing Handbook
4177
Prepare "Request for Loan Account," and hold
in:f:ile until date certain.
+
'
'(25) On date certain, pick up the applicant, or
meet at designated loan closing location
and assist in getting all necessary papers
signed.
(a) Have applicants) sign.
All copies of construction contract.
I, A
2. Proceed order.
3. Promissory nateor'mort a e.
CDR -7660, if: REHAB I loan to be
4.
n�k supplemented by forgivable loan.
(b)Explain'to the borrower the amount of
their In payments and when the first
,a
}A` �' and all subsequent payments are due.
Staff will explain their responsibility in
rall security instruments.
Iecording
I
(d) .i Continue abstract and return to the City
I.
Attorney for final opinion
'�:'9
�t 4 tiq°Record promissory' note or mortgage at Courthouse.
(e)
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borrower's supplemental. funds in escrow account'.
h` will be given receipt with xerox copy of.
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rfss,, Il,Borrower
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check
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rc>„�'a ' compliance with equal, employment
{ (26) .Assure
a 4 opportunityrequi Thisiis a continuing
19
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ty until'threments.
”;+° responsibilie,work;is completed. Chapter 13 and
Inspect the •rehabilitation work and make
AL
(27)
progress payments, if provided iniconstruction
Chapters 14, 19, and 20
contract !},
."
(28) Make final inspection of completed rehabilitation
20
�+ "FI work Chapter
Issue Form R 7645, "Certificate of Final
Cll
(29) Chapter 20
Inspection." .
(30) Take "after" pictures.
If i
(31) Ubtain,from.;contractor guarantee of work,
X: 'land suppliers', warranties, and
manufacturers
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release of liens from the 'general contractor,
subcontractors and suppliersprior' to final'pay-
ment for rehabilitation work:
(32) Request final payment to contractor for completed
rehabilitation work. Chapter 14 and 20
(33) Place in the file, the following papers
and/or forms:
r (a), Copy,oflsigned -promissory note, if applicable.
(b)',Copy of',signed and recorded mortgage, if
applicable.
(c):'Copy lof:firm commitment signed by authorized
[; City ,employee. t
I
(d) !Copy'of°,City's Request for Loan Account,
'CDR -7636.
(34) Make follow-up inspection of rehabilitation
work'. Chapter 20
b Diaapproyal of'Loan Application. Disapproval by the Rehabilitation Review
i+ Boar or, any; loan application constitutes a formal: turn down and the;
Rehab'Finance Specialist shall advise the,applicant;accordingly and properly
document the ,file ..In,the,case of special 'or extenuating circumstances,__',
Rehab Financial, Specialist ' ask the Review Board to re-examine', an
;application along with the;'documentation necessary o support the request
fors reconsideration.
a., c A Zaeant'Cancela Loan AP In the event the applicant chooses to
"cancel a loan application prior to Date Certain, the Financial Specialist
f ' `shall re are CDR 7630C'and obtain,the'a licant(s) signature.(s). If ;the
P, P PP
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applicant(s) refuses to'sign,•thelFinance 'Specialist 'shall "document this
efusal'>by so indicating on the CDR -7630C by a statement signed by the
A'�r5'Financial'Specialist�
'uapl
,
t„REHABILITATION LOAN SUPPLEMENTED BY A. REHABILITATION GRANT. The material under
” I- this hea ing is in connection with a reha ilitation loan on residential property
,supplemented by, a rehabilitation grant..
a. Outline'o Rehabilitation S4ga f4nction. All of the functions listed under
'r r, paragrap ;.1., items 1) t rougg 36 shall apply under this section.' In
9660
addition�'6ne more"Form, CD- (original plus 1), shall be completed. The
!CDR 7660 shall be',retained.in the' applicant's file untillsuch time as;,the loan
application is approved by. the Rehabilitation Review Board. Upon loan
approval,'.. one signed copy of CDR -7660 shall be given to the grant/loan
j ;applicant and one !signed copy 'shall be retained for the case record. `
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Ib. Assurance of Supplemental Financi v�. If approval of the loan and grant is
depen Tent
upon supplemental i Mn'g, the Financial Specialist shall be
assured of the'provision of those <funds ,(see Chapter 4) prior to recommending
approval,`of the, loan:
C. Disapproval by Rehabilitation Review Board. If the Rehabilitation Review
Board disapproves the loan application, the, Financial Specialist shall write
on the original copy of CDR -7660 "cancelled" and retain same in the
applicant's file.!'
d. 'Grant Only to be Approved.If a'grant is to be approved after the disapproval
of a'loan request; a new CDR -7660 'shall be prepared and the application
shall be:processed in accordance with :Chap ter 9.
e. 'AFpli cant Cancels' Loan Crant A Zication. In the event that'the applicant
chooses ',to cancel a loan grant application prior to ,the signing, of the
final papers, the,Finance'Specialist shall prepare'CDR-7630Ci,and obtain the
„ applicant(s) signature(s).`,
II_
3 DOCUMENTATION FOR LOAN ON RESIDENTIAL PROPERTY. This material sets forth required
documentation in conjunction with ,an application recommended for',,approval by
the'Financial Specialist for a`, rehabilitation loan on 'residential property. The
forms ''and other documentation; to be included with the application by the Financial
Specialist to, the Rehabilitation Review Board are Ilisted in paragraph 1:.'
`.In'structionsiconcerning same. of the 'documents llisted are as ,follows:
a Application Form.
ri
(1) It, rehabilitation -loan -is to be supplemented with a rehabilitation
grant, CDR -7660 will also be completed.
n'
Lacfi,applicant shall be given a copy of Form,CDR-7631.
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', b '„;Veri station of Ehiptoymentt ' Include a completed CDR -7633 "Request for
Verification of fnployment” for each position held within the last l2 months.
a:Verific'ations of.'employm I must be completed on all' persons'whose "sign -
F, }„ tures will appear on the promissory note and mortgage.
is Verification of Deposit. 'CDR -7634 must be completedlfor each checking and/or
savings accountlisted by the applicant(s).
Verilicatibn o !
Income rom Other Sources. Verify all other income received
y., the;;, applicants ;,,su ,as pensions, social security, ADC,'disabi.lity bene-
i,fits, rental s, income from'care of foster children, interest'on investments,
'etc. If ,the principal source of income of the applicant(s);s from his own,
business,?includea currently dated balance sheet and operating statement,
or.a copy, of his most recent tax return.
e.. Verification Mortgage or Deed of Trust. Complete CDR -7639 each out-
stan ing;mortgage!or land sales contract on all properties being purchased
,by'the_applicant(s).
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f Credit Data.
j
(1) ,Obtain a written Credit report from the, Credit Bureau.
g. (Construction Contract Doewnent. See Chapter 19.
h. Ownership Data. The Rehabilitation Financial Specialist shall make a
preliminary, informal determination of ownership. The citation from the land
records :or other official records used in the verificationshall be 'retained
ein the file. This informal verification shall be followed, at the appropri- .'
ate'time by a formal verification' in the form of a` written' title search
"and the°continuation of'the abstract.
i.,,;IRehabilitation Loan Involvi a Land SaZes Contract.- All land sales contracts
must-:be:refinanc .or retired a ore an applicant;, can apply for a Rehab I
loan. '
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CIIAPITR 11. LOAN SEITLIMI•NI'
1 ,
1. This chapter sets forth the staff
responsibilities es with respectect to aIowa.City
'yGCEi_NtERAL.
rehabilitation loan for: (a) preparing for loan settlement,
(b) completing loan settlement; and (c) carrying outpost settlement activities. 1
' 2. PREPARING FOR LOAN SETTLEMENT. The following actions shall be taken in pre-
1..' parauon or loan settlement;
Establishla date certain for loan settlement that allows a minimum of 15 days
for processing.
`i
Ii. Prepare Form CDR -6236 fora loan:encumbrance to be dated the date certain.
c After the�loanencumbrance is requested, the Financial Specialist shall
promptly take the following actions:
JI `
+
Prepare a promissory note (original) in'accordance with the form of
promissory note approved by the City Attorney's Office.!'
(2) If the loan is to be so secured, iprepare a mortgage (original) in
'mortgage
accordance with,.the of approved by the City Attorney's
Office for use in this Housing Rehabilitation program.
(a) For a loan under,$5, 000, recheck the ownership information in
the case 'file.
(b) ' For'a loan of $5,000 orlmore, arrange for updating the title
se ort tol. the"date certain.
p
(3) Prepare a proceed ''order to be signed by'the-borrower at settlement.;
3t ,, For, a' secured; loan, the executed proceed order shall be;retained:by
a r%n .-,• ••the -Finance Specialist"for five working days from the date of signing
in order. to:give,the sborrower time to'exercise his rights, of rescission
I;ka
rY
under^ithe Truth in Lending Act.'; (See Chapter 23)
(4)
,Instruct the borrower to obtain:
(a)iOriginal and memorandum copy of insurance policies for fire and
extended coverage;that'provides coverage in accordance with the 1
local coinsurance;clause percentage'of the value of the
property,
or aninsurance binder or other evidence of insurance.
or,certified
:. (b)ibriginal copy of receipt for payment of initial or
c.. ;currentinsurance premium, whichever.is applicable.
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U.r ;II(5) Make arrangements for loan settlement on the date certain.
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3. DELAY IN LOAN SETTLEMENT. Loan settlement shall be effected on the established
settlement date, provided that the approved Form CUR -6236 and theloan,check
have been received from the Finance Department. 11 for any reason loan settle-
'ment cannot be accomplished on the established date, it shall be accomplished
i as'soon thereafter as possible. Such later settlement shall, with the written
consent of, the borrower, be effected as of the originally established settlement
date: In the absence of that written consent, the loan check must be returned
to the Finance Department. .The Finance Specialist shall then set a new settle- -
c
ment date and shall prepare and submit to the Finance Department a new Form
CUR -6236 ;(original and one copy) with the new date certain specified thereon.
4. COMPLETING LOAN!: SETTLEMENT: The Finance Specialist shall proceed with loan
settlement, on the date certain as follows: .
a. 'Reviewlthe approved Form CDR -6236 with the borrower. If applicable, emphasize
that the borrower must- include not only: in his/her first monthly payment, but
also in his/her subsequent monthly payments', an amount for accrued escrow
expense account items.
b''Secure-the borrower's signature'inblock M of each of the three copies of
Form CDR-6236,"and.witness the signature.:.
c."-!§ecure,�the borrower's signature on the original promissory note.01
d If -applicable, secure the borrowers signature on the original mortgage or
deed of trust.
is
,.e. If necessary, review wit "the borrower the copy of Form CDR -7631, which was '
previously given'to him before he signed the application form CDR -7630.
f Obtain opinion of.;City Attorney (original) concerning the legality and
sufficiency of the executed promissory note and, if,:any,'.the',mor,tgage or deed
....
of trust.", The City Attorney shallparticipate in any proceedings as ,may be 4
„I
necessary, to as the legal validity of the loan` application.,
��.
;.
g ,Obtain, from the'borrower the required fire and extended coverage insurance
policies,and, premium payment receipts.
h 'Obtain:from the borrower evidence of current tax and special assessment
payments:in;,the',form of:,most „recent receipts,
?' :i. Secure borrowers endorsement on the loan check.
,i
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,Advise the borrower with regard to:
�(1) :Name of,the loan servicer to whom monthly payment checks shall be
made payable'; where
to send the first and subsequent monthly
payments, and the
obligation to remit the first monthly payment.
R
even though 'the borrower may not receive a payment notice.
(2) to make all monthly payments on the date due to avoid legal
„Need
action.
a ,
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k: If applicable, obtain check from borrower to cover accrued escrow expense
account items.(See Chapter14)The check shall be forwarded to loan
servicing agent. (See below, paragraph 5c)
1:' Obtain borrower's signature on proceed order and hold until it is evident
thattheborrower does not intend to cancel the loan in accordance with the
Truth in Lending Act.
i
5 'POSTSETTLEMENT. The Finance Specialist shall record all recordable instruments
an o tarn evi ence of recordation promptly after completing, loan settlement. `
rhe;Pinance Specialist shall prepare a transmittal letter (original and one
;copy) to,the,local lender under contract, to the City, for loan servicing. Pre-
paration and release of the original and copies of the transmittal letter and -
accompanying documents shall not be delayed, pending receipt of the recorded
instruments and evidence of recordation.
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�a:
ntlemen:
e'following City of Iowa City rehabilitation loans have been
settled and are
in'g transferred to you for loan servicing in accordance. with
the agreement between',
e City'of Iowa'City and your lending institution. For each loan
listed below,
ere are enclosed, as'applicable, checks to cover accrued escrow expense account
ems: or the followingloans:
e firstmonthly payment far each loan listed below is due
19
d the'"
ramount'Iof the first monthly payment and subsequent mon
,
ly payments or each
an isindicated on the: corresponding Form CDR -6236.
e following loans are covered by this transmittal:
9i
an,N er 'Name of Borrower Amount of Loan Type
of Loan Security
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Hrhabi.litation Pinanciny Handbook
4/77
awyrEW 13. 1T•.RMS AND CONDITIONS UNllI:R MUCH MiABILITATION
GRAM'S AND LOANS ARI: MADr
1. :GENERAL. This chapter sets forth City requirements with respect to terms and
conditions.to'which an applicant must agree in ,order to; obtain a rehabilitation
grant and/or. loan.
2. ' REHABILITATION GRANT CONDITIONS. The specific terms and conditions with respect
to•a rehabilitation grant are: incorporated in Form CDR -7660. 'The applicant
shall agree, and by signing Form CDR -7660 does,agree to:
a Civzl Ri hts.- Comply with all City requirements with respect to Title VI of
e Civil: ights Act of 1964, to not discriminate upon the basis of race,
color,.creed, sex, or national origin in sale, lease, rental, use, or
ocapancy:;of ,the subject' property.
occupancy.
b ' 'Cancellation of'Grant. Return of the grant proceeds with no right, interest
proceeds; if the grant is canceled before the rehabilitation
work :is_"started.
c se"'o}'Proceeda. Use of grant proceeds only to pay for costs of services and
materials necessary to•carry out the rehabilitation work for which tile grant
wili �be� approved.
d' Completion or Work: Assure that the rehabilitation work shall be carried out
promptly ��iciently, through written, contract let with the prior con-
;�;�'���" '�'.currence of the Gity
',�wAe alneZ ibte Contractors .Not award any contract for, rehabilitation work to be
F pai or.p;in whole: or in part with the proceeds of the grant,; to anyfcontractor'
Rehabilitation Financing Handbook
4/77
j. !Interest of the'City. Allow no member of the governing body of the City in
which the property to be rehabilitated is situated, and no other City official
of the locality who exercises any, functions or responsibilities in connection'
with the'. administration of, the federally assisted project or program, and no
other officer orlemployee 'of the City who exercises such functions or
responsibilities; to have any direct interest in the proceeds
of this.grant, or in any contract entered into by the applicant for the
performance of work financed in whole or in part with, the proceeds of the
rehabilitation grant.
3. REHABILITATION LOAN CONDITIONS: The specific terms and conditions with respect
to=re a ilitation loan to a residential property are incorporated in Form CDR -7631,
,4, the'mortgage or other security instruments as, applicable, and the promissory note.
a. Cancellation Provision. Under paragraph 3 o Form,CDR-7631; concerning the
City's rig t to cancel a'loan if within 60 days from theinote's execution the.
rehabilitation. work has not commenced, the City may 'extend the 60 -day period
by`not more than 30 days, 'due to unforseen and extenuating:circumstances.
b i'Additionai Extension. Ahe Rehabilitation.Financial Specialist shall not grant
"any ur er extensions of time without prior written concurrence by the
.Director,' Department of Housing and', Inspections. If the loan is to'be canceled
because'of.failure to. beg in anticipated•rehabiIitation work within the allowed''
„ "period of time the'' Rehabilitation Financial Specialist shall initiate can-
cellation;in accordance with the procedures -in Chapter 10.
4 'INTEREST•RATE: The interest rate to the borrower fora rehabilitation loan shall
e at established by -the City,Counci L 'presently no interest is charged.
�5rl5TERM OF LOAN' a,The maximum, term fora City, rehabilitation loan shall be 15 years:
w+iu� or,t—Tree Fourths of the remaining life,' whichever, is less.:`1
6 :POINTS OF AGREEMENT The applicant shall agree, as required by the related 1
"
ocuments, to a i e by'the following teens and conditions:
Civi.Z with
a Rights Comply with all Federal requirements respect to Title VI
oC the Civil Rights Act _of'1964, to' 'not discriminate. upon the basis of, race,
P :color, creed,', sex;'. or national origin in sale, lease; ren tal, 'use, or:occupancy
of the subject property,
bi 'Equal Empboyment'Opportunity. Abide by the provisions of Executive Order 11246
f i, concerning t, equal employment opportunity.
c Use of Proceeds. Use the loan proceeds,only to pay; for costs of services and
materialsrnecessary, to carry out the rehabilitation work for,which the loan
will;,be.approved. -'
�d Completion'of Work. :.,Assure that the rehabilitation work shall be carried'out
;:promptly, and a 3 efficiently through written contract. i
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I
e. Ineligible Contractors. Not award any contract for rehabilitation work to be
paid foN whole or in part with the proceeds of the loan to any contractor,
.who, at the time, is ineligible under the provision of any applicable regulations
issued by the Secretary of Labor to receive an award of such contract.
f.Inspection. Permit inspection by the City or its designee of the property, the
rehabilitation work, andlall contracts, materials, equipment, payrolls„ and
conditions of employment pertaining to the work.
i
g:
Records.. Keep such records as may be required by the City with respect to the
ree a ilitation work.
.'h.-'., Interest of Certain Officials. Not permit any member of or Delegate to the
Congress o e United,States, and nq Resident Commissioner, to share in any
;proceeds "`of the loan, or to any benefit to'arise from the same.
i "Bonus Co=issson, or Fee. Not nay any bonus, commission, or fee for the
purpose;o o taining e City's approval of the loan application, or any other
approval, or concurrence required by the City omits designee to complete the
„ rehabilitation work, financed in whole or in part with the rehabilitation loan.
r, Vl 1 Interest of the City. Allow no member of the governing body of the City who
.r
exercisesany functions or'responsibi.litios in connection with the
administra-tion of the concentrated rehabilitation project, and".no other officer.or '
;'employee;;"of rile City,who exercises uch functions or responsibilities'to have
any direct interest in the proceeds of the rehabilitation loan,
F " or �n any;-contract:enteredinto by, applicant for the performance of work
" ifinanced,rin whole or in part, with'the proceeds of the rehabilitation loan.
I '.. • ,
dn,Preaeruation of the Security Maintain the property,at the requirements of the „r
" '`',Rehabilitation Standards,aevel`an&9permit the City or iiii designe'e'to'inspect'i' ;
;r the property during the term of the; loan.
rNazard'Iiisuranee.Maintain hazard insurance on the property with a loss payable
" clause to -t a City as applicable.
roperti No
sell;
withot
tii'4, m '.•,traiTntire loan,Punless,priortwrittenoconsentfof the'Cityeisysoughtuand: aying j
received
Loam Security Requirements. Provide security for the loan the form of a
a
T mortgage, on 1 t e pable'.
"r
o.(Debtor !s Insurance. Maintain a debtor's,,life insurance policy in the .amount
t oflithe mortgage or:lien as applicable.
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CHAPTER 16. NLMBDZING GRAM AND LOAN APPLICATIONs
1. NUMBER TO. HE ASSIGNED EVERY APPLICATION. 'lhe Staff shall assign a number to every
application or a rehabilitation,grant.and/or loan, in accordance with the require-
menis'of this chapter:' The Stafshall enter the assigned number in the spaces
provided,on the applicable Form 'CDR' -7660, Form CDR -7630, and Form CDR -7643 (or
equivalent),: on all the other CDR forms and documents related to the rehabilitation
grant and/or loan.
2. ONE.NUMBER SEQUENCE PER CALENDAR YEAR. The number system requires that only one
sequence o' num ers, eginning'wit "l"', be used in connection with each calendar
year. Number shall. be assigned consecutively, from this aequence regardless of
whether. the,applications are 'for a rehabilitation grant, =a rehabilitation grant,
a' rehabilitation loan`or both; and the!',type of property and loan involved.
3 NUMBERING OF APPLICATIONS. The number assigned by the Staff to every application
%relat oc�nnents or a -rehabilitation grant and loan shall,,consist of the
-landfollowing, three parts, with each part 'separated by a slash141� (/):
a., Calendar Year-Last'Two Digits of Calendar Year 716 etc.
b Numbet'assigned consecutively from a single sequence of numbers shall be
Ap
used for. each year. If the applicant is submitting two applications - a
form CDR -.7660 fora rehabilitation grant, and a Form CDR -7630 (or equivalent)
for}a rehabilitation loan -. in connectionwith the same owner -occupied, one
},n f „ or two dwelling unit property, the same number shall be assigned to both
.applications..
I
c The category code 'T' "211 "3" or "4", to indicate the category of
"iapplication as follows
„ .
Caiegory'code:"1" -- an application fora rehabilitationjoan only in
connection! with ani owner -occupied, residential property containing one
„�� ti or•two dwelling unitsE"after ,rehabilitation.
T�(2) Category'cod'`,'T' - an application for',a rehabilitation loan in
y connection with an inv,'estor owned residential property.
i
(3); Categorycode "3" -- an application fora rehabilitation grant only.
" `"i (4) Category codel"4" - two.applications fromthe same applicant in,,
6 connection with the same owner -occupied' residential property containing
one;or two dwelling units after rehabilitation; one application Form
CDR=7630 (or'equival'ent) for a rehabilitation forgivable loan and the
her: a: Form CDR -7660 ,for a rehabilitation grant.
4EXAMPLE OF APPLICATION NUMBER. The following examples of application numbers,
or •illustrative purposes, 76/1/3.
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(1) Reimbursement o an A
Zication Fee
or an A� roved Loan. The City
s all relm urse its
at loan closeout See Ciapter,l2 for an;appli
cation fec advanced for
an'Iapproved
loan by transferring the full
amount of the ;advanced
fee from the
rehabilitation escrow account to
project funds.
(2) "'Reimbursement of an Application
Fee
for a Disapproved, l' Cance Zed, or
Withdrawn Loan.
Since the fee is initially advanced
from project funds, no reimburse-
ment is involved when a
loan is disapproved by theRehabLoan,Committee,.
canceled, or. withdrawn.
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CRAMR 18. WIFE WORK 'f0 BE DONE WITH' RElUU31lITA7'ION GI w AND IRAN
1. GENERAL. This section sets forth the responsibilities of the Rehabilitation
Construction ;Specialist for determiningthe rehabilitation work necessary to
bring a, property into conformance with the Rehabilitation Standards and for
providing assistance in the rehabilitation of the property. In`carrying 'out these
responsibilities, the Rehabilitation Construction Specialist shall:
a. Inspect the property.
b.Make a preliminarylwork write-up and cost estimate of the work to be done.
c.' Consult with and advise the owner on the work to be done, and the availability'
of:a'rehabilitation;grant and/or loan.
d. Prepare alfinal work write-up and cost estimate as the basis for a rehabilita
tion grant and/or loan and for contracting for the rehabilitation work (when
any of'the work is'ito be finance& with a rehabilitation grant and/or ':lo an).
IF...
2- :'PROPERTY. INSPECTION.. The Rehabilitation Construction,Specialist shall inspect
t e;,property,anT prepare an inspection report that identifies'each deficiency with
respect to -the -Code and other deficiencies which may be corrected through
,
, rehabilitation grant,'or loan funds. I(See Chapter 5) ,, An inspection report pre-
'pared'in this'.mann er yv3. 11 later;serve `the Rehabilitation'Construction;Specialist
asl.,the.basis for preparing a work write. -up and cost estimate.
r 3' INSPECTION'CNECELIST:{ jThe City.has developed an inspection checklist for use in
inspecting,eac residential property. ;,In essence, such a: checklist is a listing
of`every;item;which is''subject (to Code that maybe found''in a,property./. The use
f' ofitsuch a"checklist .facilitates the inspection, ;and also,ihelps provide a'; proper
basis'for'the",preparation of the work write-up, cost estimate, and the contract
specificatiIF
ons
;,+a •Checkliat'bq Room. For a residential property, the items in the checklist
are c— lasssied by, room. For example, items applicable to.a kitchen or
hathroon, are listed on sheets under those roan classifications. Similarly,
a.;separate:;sheet with an appropriate listing of items would'be used for each
. ^ }iabitable 'room.
b Checklist Information. Alongside each item on the checklist, space is provided
,vindicating the;,r�ature and extent of the_deficiency.,,Additional space'is
provided on the'checklist,'or in, supplemental sheets, for notes dealing the
types 'of materials; extent of repairs or replacement, and other information
that may be helpful in later preparing the work write-up and cost estimate.
4:r, WORK WRITE-UP AND COSTIESTIMATE A work write up and cost estimate is a statement'
prepared by the Rehabilitation Construction Specialist based on the property in-
spection report that itemizes all the rehabilitation work to be'done on the
proi and" includes, estimate of the cost of each 'item. The"cost estimate
!shall be reasonable and shall reflect actual costs prevailing in the locality for
comparable work.
1,
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a. Ass tion that Rehabilitation Financi Will Be Used. Since it is generally
not practical to predetermine ether or not a property owner will utilize <.
a rehabilitation grant and/or;loan in the rehabilitation of his property,
the Rehabilitation Construction Specialist shall proceed on the assumption
that such financing will be used. For this reason, :it is important that the
work write-up be sufficiently detailed to facilitate:
(1) Cost estimation.
(2) Consultation with the property owner and/or tenant.
(3) Preparation of specifications for construction contract documents (see
Chapter 19) in conjunction with a, rehabilitation grant and/or loan.
b. 'Dual Use of Work Write-Up. In a case where the rehabilitation is relatively'
simple or:limited'in scope; the'work write-up can be made sufficiently
comprehensive to be usedjater (without the cost estimates), as the,specifi-
.cations for the construction contract documents.In such a case, the work
write-up shall be prepared as described under paragraph 7. below.
c. Itemizing Cost. Each item of work and its estimated cost shall be identified
in the work write-up,as being either necessary to meet the Rehabilitation
Standards; or for other purposes that may be financed with 'rehabilitation
grant and/or loan funds, (see Chapter 5). This is done on the work write-up
by. entering the cost estimates en's columnar arrangement.
d
Adjusting'Work Write-Up. If the total estimatedlcost of thework exceeds
thethei amount,'of the rehabilitation grant and/or loan the applicant could
-receive, or exceeds the:applicant's financial ability to do:all work, the
E: ,Rehabilitation Construction Specialist shall eliminate or modify items in the
work:writeup as necessary=to reduce' estimated cost;,however, items of work.
necessary, toi meet, the Rehabilitation Standards shall hot be eliminated.'
e ,Oumer's Pre erenae:.'A preliminary work write-upishould not contain details
t t ave.no significant effect on cost, such aslcolor, style or pattern. 1
Decasionsron,thes6';details can be made when preparing the specifications
for the construction contract documents, or evenafter the :contract award by
I` providing+'in the contract documents as appropriate,`Lthe term "to be selected
by owner:" ,
5:
CA ELIGIBLE, FOR REHABILITATION GRANT. For an applicant, who is eligible
bd,for; a; rehabilitation grant, t e anal work write-up and cost estimate prepared
'by the Rehabilitation Construction Specialist shall:
a. Identify each of the items of work to be financed by, the grant.
b .Show the total amount for those items, indicating how the statutory limits
a were: taken into account ,(see Chapter 6).
' (If ,the,finalwork write-up is to be used for the specifications, the two items ,
above shall be shown on a separate sheet that will not be part of the construction
contract doci tints.)
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6. CONSULTATION WITH PROSPECTIVE APPLICANT'. As soon as possible after inspection'
of the property,(pre erably within 24 iours), the Rehabilitation Construction
Specialistshall consult with the prospective applicant on the preliminary work
write-up and cost estimate. The Rehabilitation Construction Specialist shall
advise the applicant which items of work are required to meet the Rehabilitation
Standards, and which',are not required, but may be financed with rehabilitation
grantand/or.'1oan funds. The Rehabilitation Construction Specialist should be
;prepared to eliminate'` ormodify any item in the preliminary work write-up that
is not specifically' required; by, the, Rehabilitation Standards. However, the
Rehabilitation Construction Specialist' should encourage each applicant to under
take'as much of the other rehabilitation work as he can reasonably afford'. As a
:.result of the consultation and agreement between the Rehabilitation Construction
Specialist; and the applicant on the work to be done, the Rehabilitation Construction
Sp6cielistlshall prepare a final work write-up and cost estimate::' The final work
write-up shall be the basis 'for `the specifications in the construction contract
documents to be used to solicit bids and proposals from contractors (see Chapter 19).
Z. .. SPECIFICATIONS IN CONSTRUCTION CONTRACT Do UMENTS. Each specification in a
4 'construction contract ocument s 11 e w itten so that it provides a clear under
"standing of thet nature; and scope of the work to be done, ,and a basis for carefully
P .Posalsfrom contractors. Each
determined bids and, ro , : specification shall show
the nature and location of the work and the quantity and type of materials required.
r The specifications shall refer to manufacturers -brand names or to association,
standards to identify the quality of materials and equipment required, and may make
prodision'for,'acceptable substitutes. ,Jf the 'work write up is, sufficiently com-
prehensrve At may itself be used for the specifications, without any Cos t
estimate figures or distinctions as to work required or not required.
'Standard'Specifications The specifications in the construction contract documents
%i themselves, ll be.,'kept relatively'simple by -having the documents refer to the
technical and' detailed7specifi6tions'that are contained in another document that
r is, called "general specifications." This technique simplifies';and facilitates the
7.1,
preparation of:the,work write-up, cost estimate,, and contract documents.
(1) Definition;' The "general specification" is a document that compiles technical,'
detailed specifications for each of'the types of rehabilitation work that is
expect6d,to'occur,rnvith some frequency, for,the types of properties in the
p'rolect area, and are modeled after the FHA Minimum Property Standards for
one and'-two3family'structures.
(2) AvailabilitThe!'general specifications" are kept on file in the project
z, o icff a and::other locations convenient to all contractors.
i
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CHAPTER 19. CONTRACTING FOR RI HABILITA'PION WORK
1. INTRODUCTION. 'Phis chapter sets forth requirements and procedures with respect
on
to constructicontracts for rehabilitation financed' through a rehabilitation
gra
nt,:rehabilitation`loan,'or both. ,Construction work for rehabilitationfinanced
through a rehabilitation grant and/or''a'rehabilitation+loan shall be undertaken''
onl throw h a written cont
y g ract between the contractor and the recipient of
the grant or loan. 'The Rehabilitation;Construction Specialist shall assist each
: applicantl in arranging for and ',obtaining an acceptable construction contract.
a. `.Form 64 Contract. :The construction contract will consist of a single document
sign y t e contractor and accepted by the borrower, ,only following approval
of the' rehabilitation grant and/or','loan. It shall contain a'bid and proposal
by the'contractorfand the general conditions, as well as the specifications
for'the work to be performed.
" G b "'Use 'of AZteinates. The contract document prepared by the Rehabilitation
Construction Specialist may provide for alternates by which the bidder, as
part of his bid and proposal, offers increases and decreases to the lump sum
'contract; price! to' `cover alternatives in,the performance of the work. An
alternate. may be,used to cover an item of 'work, the"need for which cannot be
determined until ,some time during the course of the rehabilitation work. For
the construction
.exam le' traction contract may ca
p y ll for replacement of a bathtub. The
:floor foists in t bathroom are not exposed, and their actual conditions cannot
he determined even withcareful inspection. ,However, general conditions in
the bathroom, sucfi as evidence'of plumbing leaks over a period of time, indicate
9"that the'floor joists'may,be rotted: ':The work write'-up, cost estimate,and i
a, the approved rehabilitation grant and/or.loan may include an amount.to,replace
e the floor joists, and related costs if,:upon3removal'of the'old bathtub, this
•+' '<+.need is"apparent ;;'Under such circumstances;°the work to replace the floor '
foists should be included 'in the construction contract dociunents as an
,alternates' .If'uporrremoval' of.�the old bathtub it is found 'tluat work';'is not
needed,, no payment'j,for it is required under, the construction contract. 'If
4, that worki'turns out to be needed, the cost is established by the construction
contract documents and the contractor can be ordered to proceed with that work
the'stated surti:
(1) Format for Alternates.' Generally, alternates should be avoided, but when
'* use, ; t�T�FTie Re a ilitation Construction Specialist shall provide for them
specifically:;in.the section provided for bid and. proposal by adding
li,, rh
_.
material such4s_the following:
�•,
Alternate N1., (description of the alternate)
1;i IT
Add $ i Deduct $
i
Alternate H, 2.: Same,aslabove for Alternate N1.
,
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i. ,'Provisions that the owner will:
(1) Permit the contractor, to use, at no cost, existing utilities such as
light, heat, power, and water necessary to the carrying out and
completion of the work.
(2) Cooperate with the contractor to facilitate theperformance of the
work, including the removal and, replacement of rugs, coverings, and furni-
ture,:as necessary.^
j. A provision that the premises are to be either occupied or vacant during the
course'of,the construction' work.
k." A provision that final payment on the contract amount will be made only after,
`final inspection and acceptance of all: the 'work to be performed by the
r
ccontractor, and the contractor has furnished the owner, c/o Rehabilitation �
Construction'Specialist, satisfactory releases of;'liens or claims for liens
"7> by;ahe contractor, subcontractors,Jaborers, and materials suppliers.
1 A provision that the contract consists of the bid and proposal, the general
conditions, the specifications incorporated therein by reference and
identified as,Exhibit "A" and the; drawings (if any)',, identified (the'Rehabilita.
tion. Construction; Specialist will have inserted appropriate identification
ofthe specific drawings).;
m —A section'at.the.end of the general conditions containing material to be
cdnpleted by the .bidder, generally, as follows:
j, , Fi6r,theliconsiderations named .therein, the Contractor
proposes to:.furnish.all the material and do all`of
i'Si the,; work described in and in "accordance with; the
contract identified 'above in;'item 1. ;of the general
if�7 4 rii t,.
rconditions for ,the lump=,sum price of $I: ,-
Ik`.',
6,
n Contractor. Acceptance by Owner
(name of'contractor)I (name of owner(s))
(address and ZIP of contractor) (address and ZIP code of owner(s))
a ,
'(date of proposal and bid). (date of acceptance)
" (notarization or acknowledgement) (notarization'or acknowledgement)
3 , SPECIFICATIONS AND DRAWINGS. Specifications, based on.the work write-up and
�,..�
illustrative sketches, any,:,coveringthe specific rehabilitation work for each
property on'which' a-rehabilitation"grant and/olr1oan,will be made shall"be pre-
pared,by the Rehabilitation Construction'Specialist. ;,Drawings shall be prepared
i' only when essential'to:'show,the scope'of the work involvedso'that a fair bid fort.
eewor.d,,and to The,
c
.specifications and drawings shall be based on the work write-up:resulting from an
,'
{ inspection of'the property and interviews, as indicated, ;with the applicant. The,'
specifications shall 'clearly establish the nature of the':work to be done and the
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material and 'equipment to be installed. Each page of the specifications and
drawings shall be numbered and shall contain identification that includes the
name; address of owner, and`the date 'of`the specification.
OBTAINING CONTRACTORS! BIDS AND"PROPOSALS. The Rehabilitation Construction
Specialist shall establish and, on the basis of his experience, maintain'a current
listing of contractors, subcontractors, and materials suppliers who are qualified,
to'perform, 'and are 'interested '',in doing rehabilitation work financed' through a
rehabilitation grant and/or loan. The listing may be based on the .experience of
thefStaff , experience of property owners and others,, information obtained from
bank's' credit, and.trade associations, FHA Insuring Office, and other information -
available to the Staff. While the list, in a limited ,way, may serve'the purpose
of prequalifying bidders, it shall not.be used as a means of excluding' bidders who
are not'on the list at the time the submission of a bid and proposal is in order.
!'INVITATION TO CONTRACTORS 'FOR BID AND PROPOSAL,
a. Coiztraotor'SeZeetion. The owner shall be asked for the names'of two contractors
e. would :like to bid on the rehabilitation of his property. If the owner does.
>not know two contractors or no contractors, the Rehabilitation Construction
Specialist shall provide the property owner with one or two contractor names'
.when the owner knows'of no'.contractors from the list of, approved contractors
maintained at the Department of Community Development.
b.i::Invitation to Bzdil Once two contractors have been selected according to
paragrap 5 a. aliove; the Rehabilitation ,Construction Specialist shall contact
the, selected, contractors and invite them to: bid the proposed rehabilitation.
Rehabilitation Financing Handbook
4/77
(a) Adequate active liability insurance (see 2. h. (1) above).
(b) The name of his company bank.
(c) The names of his usual subcontractors.
(d) The names of his principal suppliers.
(e) The names and addresses of at least two (2) residential rehabilitation
or remodeling jobs.
Contractors providing acceptable data as requested above shall be placed
on the list of approved contractors. No contractor shall be placed on
the?dist who! is subject to FHA debarment under paragraph S. e. below.
`(2) The Contractor List shall be maintained in a conspicuous place within
the.Department of Housing and Inspection Services office, open to public
i review. The' ",Contractor List shall
be grouped according to the category
of specialization the contractor requests to be 'listed (e.g., general
contractors,; electrical, plumbing/heating, masonry, drywall, etc.).
(3) Selection of'a contractor to bid on a'specific job shall be made by taking
the contractor whose"name appears at„the top of the list under ,the
” category of specialization that is applicable to the specifications under
consideration. As a result, all contractors move up one, and the name
of; he contractor selected to bid is placed at the bottom of the list.
,f.'Ac'eeptable Contraotora. The Rehabilitation Construction Specialist shall
Tip always exercise care and good judgment in�selecting'a contractor. A
5 „ "selected contractoof good reputa
tion, financially sound, have
r shall: be
adequate.financial`'resources to..carry outl his bid and proposal, land be qualified I'
to do thei;required'work: The Rehabilitation Construction Specialist shall
"frequently monitor the list of contractors to assure that they continue to
b'e acceptable.
•`"'(1) ,,Reperral to HUD Publication.' As part of ascertaining,.the contractor's
Settion''201':
Office will!
Te Rehabilitation Construction Specialistj;shall-see if
the;icurrent edition of the!IND publication, "Dealers and
ect'to the :Provisions Fof Section 201.8(b) and
of the Title`I Regulations". 'The Area HUD Insuring
available acurrent''edition of, this, publication upon
.he'City. Listing in'the publication does not necessarily
(tractor. However, the'Rehabiliiation Construction
check the contractor -more carefully,,`including'getting
-oration' on him from the FHA Insuring Office before making
I
'eet to Administrative Debarment: Checks made by the
:onstruction,specialist will not, preclude the FHA from
participation checks as it deems necessary. Contractors
)'Federal administrative debarment as a result'of these
: be selected.
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g. No Notification to Ridder befog. Contvacl. Ai,Mrd. The Rchabilita tion
Construction Specialist sha11 not advise any bidders of either selection
or rejection before the contract is awarded.
G. AWARD OF CONSTRUCTION CONTRACT. 'lhc contract shall be awarded by having the
!L.:. applicants or the re abilitation grant and/or loan properly' execute. the contract.
i with the assistance of the Rehabilitation Construction Specialist.
a. Iaauance'of Proceed Order. At the time the award is made, the Rehabilitation
Construction Specialistrshall remind the applicant and the successful
contractor that the undertaking of ,the work covered by the 'contract is
subject to issuance by ;the owner of a proceed order, within the number of
i
days stated in.the general conditions of the contract from the date of the
award. "Upon award of the contract,the Rehabilitation Construction Specialist
shall notify unsuccessful bidders that they ,have 'not beenawarded thelcontract.
b. Contract Awarded after Receipt of.Reaervation o Funda. In a case involving
a loan,,.t a contract award shall e m e y ter tfe Rehabilitation
Construction Specialist has received a firm commitment from .the Director that:
the'.loan'has been approved
c,'Award within 30 days of Cutoff Date. TIn order for the bid and proposal to
_bT_b_5_d1_ng_,7_tT e award shall be made within a, period of 30 days from the cutoff
date• established by the 'Rehabilitation Construction Specialist for the
T. receipt: of the bid and proposal; unless a later date'is agreed upon in
writing
d Contract Award In the award of a construction contract for rehabilitation
the rehabilitation:grant and/or loan shall execute the original and five copies
of-,'the,contra ct,documents.i The Rehabilitation .Construction Specialist shall
distribute the executed contract.documents as follows:
(1) Executed copy to. contractor.
i
Executed copy;.to,borrower.
k ,.(3) Executed original and''copy retained by Rehabilitation Construction
Speciali'stifor file.
,,(4). Executed copy. to Financial Section.
f 7ISSUANCE OF PROCEED ORDER. The general conditions of the construction contract
will, state that the owner willissue., a; proceed,order within'a stated number of
daysjfrom the date of: acceptance of the contractor's bid and proposal. The
proceed order for a construction contract whicli',shall be executed by the
borrower at loan'settlement, shall be issued within 30 days of the acceptance
l of;iae contractor's ,bid and ,proposal,; and shalllrequire the start of construction
within 30 days or less from'the date of the order's signing. `..In order to con-
;�; fOlM with-th'S,contract condition, a proceed order shall be issued promptly
rafter the Form CDR77660 for a' rehabilitation grant has been approved and/or loan
settlement has been completed for an approved loan. Loan settlement is con-
n
,
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' Rehabilitation Financing Handbook
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sidered completed only after recordation ofthemortgage and expiration of
rescission.right.' The Rehabilitation Construction Specialist shall assist
' the grantee or borrower in the preparation and issuance of a proceed order.
The proceed order shall be;prepared for the applicant's signature, and shall
t_ - -
to time,
'ORIdED BY OWNER IN: REHABILITATION PROPERTY. Questions arise from time
luring the processing of a rehabilitation grant and/or loan, concerning'
s''performance of; some or all of the labor required to complete the
ition of his property. These paragraphs are intended` to supply
> those questions, as well as describe the circumstances under which
of self-help is desirable and to be encouraged.
7 Work and Skill of Owner. A'property owner may complete some or all
tasks required to rehabilitate his,property, if,he has the degree of
•equired to perform the work involved; Self-help is usually appropriate
accomplishment ofr.;tasks`of an unskilled lnature suchlas,general clean
iolition of small buildings on a property;' removal, cartage and
1 of the debris, and for work that.involves minimal use of costly
and,equiPm�' ent. ,,Work of a"skilled nature, and work involving the
ve':,installaiion of costly materials; and equipment, are appropriate
Rehabilitation Construction Specialist is assured the property owner
ability and experience required to, do the work properly without
sion, or:
that he .has sufficient 'skill to do°the work 1properly,:with
ahjadvice 'and guidance from"the Rehabilitation Construction Specialist'.
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Rehabilitation Financing Handbook
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Provision for Selp-help in Grant and Housing Goan. IVhenever self-help is
necessary, indicated, or desired, an the Rehabilitation Construction
Specialist considers that with or without its technical assistance and
'
guidance a property owner will be 'able to perform the work in a reasonably
acceptable and expeditious manner, it may process an application for a
rehabilitation grant and/or loan on that basis. In such a case, the amount
of the grant and/or loan would provide funds to pay for, the materials and
equipment to be installed by self'help, as well as any additional funds
needed to pay for other' rehabilitation work to be performed by a contractor.
i
The grant and/or loan shall not include funds to pay the owner or members of
his family for their laTior. Further, the Rehabilitation Construction;
Specialist must exercise 'good judgement and prudences as_to',avoid a situation'
'in which an owner could place himself in financial difficulty through' improper
'
use, installation, or even'' destruction of the materials and equipment pur-
chased with grant and/or loan funds. For this reason, the owner should
understand that the proceeds of a grant and/or loan to pay the supplier for
materials and equipment involved in a self-help will.be disbursed from the
rehabilitation escrow account, by the Rehabilitation Financial Specialist, only
after they have been properly installed.
e.
Coordination with Contractor. When some of the rehabilitation work is to be
done through self-help; and the'remainder is to be done by the contractor,
d:
the Rehabilitation Construction Specialist°should assure that the work is
done by each of them so as not to interfere with or jeopardize the other's
work. Iin cases where.a separation in the timing of; the work `is not feasible „
the Rehabilitation Construction Specialist ,should urge the oianer and con-
,r
tractor.'to make. their own arrangements on the timing, so that each may do
his work'without-causing any interference in the work to be done by the
yr 11.�""F+
other 'In all'jnstances, the owner, will be better protected if work to be
done"through self=holp'is completed,.before.'the contractor starts his work.
Such completion will help avoid claims by the contractor for extras or damages
I „"
he may,claim arei,caused by,,the self-help efforts, and will assure that when
B';s
all'work'is finished;' the property ,will comply with the Rehabilitation
P
I�
Standards:'
9 OTHER. PROVISIONS (in re: -2h(1) of this chapter)
'the
`:I a..
The Contraotor'Sfuibl: indemnify and hold harmless the Owner, Owner's
em to ees t e C and Ciy's employees from any and all lia-
p ity Eng
neer,
bilit , loss, cosy dams e' and expense (includingreasonable attorney's fees
and court costsy resulting;from, 'arising out of, or incurred by reason of any
claims ;;actions„'or suits based upon or alleging,bodily injury, including
death, or property damage'rising,out of or; resulting from the,Contractor'si
operations under this Contract, whether such operations be by,! himself or by
:any Subcontractor or by anyone 'directly or indirectly employed by either of
;them ..The Contractor shall' obtain', insurance for this purpose, which shall'
'
insure ahe interests of the Owner and Engineer as the same may appear, andit
shall file with the Owner and the City certificates of such insurance.
iThe approval of final
b.
Correction 6f TauZty Work after FinaZ Payment: the; I
final by
Request for Payment by the; inspector and the making of the payment
i.
the Owner to the Contractor shall - not relieve the Contractor :of responsibility
';' ij
forifaulty materials or workmanship.
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CHAPTER 20. INSPECTION'OF REHABILITATION hURK
1. GENERAL. This chapter sets forth the requirements for the inspection of'rehabilita-
H work', financed in whole orinpart with a rehabilitation grant and/or loan.
2. RESPONSIBILITY FOR MAKING INSPECTIONS. The Rehabilitation Construction Specialist
shall make inspections of construction work in cases involving it rehabilitation',
loan' "or a rehabilitation grant. To accomplish this, the Rehabilitation Construction
Specialist shall make,
Ij
(1) Compliance inspection, as necessary, to assure that .the construction work
is being completed in accordance with the construction contract.
,
(2)14inal inspection to determine that the construction work has been completed
in accordance with construction contract. The Housing Inspector and'.any special-
ists"fromthe Building Inspection Department, as may be required, shall
accompany the Rehabilitation Construction 'Specialist on the final, inspection
andishall provide, the Rehabilitation Construction, Specialist with a written
report of, their, findings.,',
3 INSPECTIONS FOR'PROGRESS PAYMENTS AND FINAL PAYMENT. Inspection of construction
wor s ll e.. a in accordance with m
a ollowg:
I
o a 'Pro resa Pa menta.A compliance inspection of the rehabilitation work shall
E, ma e,.be or' a the Rehabilitation Financial, Specialist makes a progress payment
on a contractor's;anvoice:``
(1) Inapeetiori Report'- Request for Payment. The Rehabilitation Construction
Specialists all prepare am inspection;reportl(original;and onet'copy)
`for cases involving a rehabilitation°;grant and for City Rehabilitation
i I
2 Payme�t for Satz�faotoryyWork. If the!inspection determines that work com
O _
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'b. .Final Zna ee�
ion. Upon completion of the rehabilitation work and receipt of
the tractor's invoice containing his certification of satisfactory completion
' of all the work in accordance with the contract: and his warranty, the Rehabili-
tation Construction Specialist shall arrange for inspection of the completed
work.
' c. Making cggl Payment. When the final inspection determines that the work is
satisfactorily completed in accordance with the contract, the Rehabilitation,
' Construction Specialist shall obtain from the contractor a release of'liens, 'and
a copy of each warranty due the borrower for the work. After receipt of a
' release of liens, including releases from all subcontractors and suppliers
:and a,copy of each warranty, the Rehabilitation Financial Specialist shall make
' final,, payment in accordance with Chapter 14. The Rehabilitation Financial
Specialist shall then prepare Form CDR -7645.
' 4 CERTIFICATION OF FINAL INSPECTION. After the Rehabilitation Construction Specialist
determines that the rehabilitation work has been fully.and satisfactorily completed
and: he final inspection report obtained, the Rehabilitation Financial Specialist;
shall prepare a Form CDR -7645 (original and three copies).
Distribution. Form CDR -7645 shall be distributed as follows:
(1).Signed- original to the property owner.
i
(2) Signed copy retained in the property file.
5 SNPPLEMENTAL'INSPECTIONS. In some cases defects and inadequacies in the con- G
„,struction,work ,,pot apparent at the' time of final inspection, may show up after q:
final payment':for the;work
:is made and Form CDR -7645 is issued. Most ofthese
1 are ininor,'such as doors and windows ,that stick after painting. However,:others
are serious; such ,as roof leaks not ascertainable until' after a rain, defects in
heating systems installed during the nonheating season that were not revealed in
thb'Jimited'tests after installation, and plumbing leaks that did not show up in
f ina
11 uispection. i''
FI'r' a One -Year Cuarantee�on Work b Contractor. All work performed by the contractor
iscovered by a one-year guarantee but property owners nre;not always aware
` that,`for, a period; of one year, they may require the contractor to correct
ai cant and inadequacies in the work performed under this.contract.
or thisreason, the Rehabilitation Construction.Specialist'shall inform the
owner 0;ithe'guarantee requirements'upon,completion of the rehabilitation.
b Additional-CaIZ by' Rehabilitation Canetruction S eciaZist to Insure VaZidit
t " "and Correction of Complaints. Although a limit examination indicates that
the ,inci ence o serious de ects and inadequacies in the construction work is
frequent, and contractors generally correct them promptly when requested,
thei Rehabilitation Construction Specialist; after the final inspection, shall
1 'make an additional all on -the property owner to ascertain if; there are any
complaints about the work that has 'been done. Ibis call shall be made within
60 days after the',' issuanceof Form CDR -7645.'' The Rehabilitation Construction
Io
;.Specialist shall, inspect that work to ascertain if the complaint is valid. If,.
the'complaint is valid, the Rehabilitation Construction Specialist shall assist
the property owner, in obtaining prompt corrective action frau the contractor.
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6. CONSTRUCTION SPECIALIST (INSPFCTOR) - OWNB'R - CONTRACTOR RELMTONS
Inspector's Responsibility and Authority:
shall observe the work on behalf of the City, and will provide
I.the:inspector
general assistance during construction insofar as proper interpretation of the
Mininwn Housing Code requirements is affected.
ti
The inspector, and owner shall decide, when necessary, any and all questions which
er-I'
mfoaYrmaerdi,seas 'to the.4unlity acceptability of materials furnished, work per-
' inerpretation of Plans and;,Specifications and !all questions as to the
'!.i erpretation
acceptablelfillment of the Contract:bn the part of the Contractor.
The construction inspector will not be on the construction site at all times and
as 'such°cannot be.responsible for the acts or omissions of the contractor or his
employees 'u, For the; same reason acceptance by the inspector of the contractor's
work`performed,.does:not release the contractor from the responsibility to provide
quality performance on all contract specifications.
!
II I
!
I
i I ,
n
s
yy
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Rehabilitation Financing Handbook
9/77
CHAFFER 22. 'APPLICANT'S INCOME
L. GENERAL. This chapter sets forth the; basis for establishing an applicant's income
or,Y e,purposes of a rehabilitation grant and/or loan on a residentialproperty,
and::takes into account the variations applicable to different type of applicants
and properties' and special considerations related to the type of project area
inlwhich the property is located.
?. TYPE OF, APPLICANT. In order to make determinations with respect to eligibility :
'!
fora rehabilitation.grant,,and the purposes and amount of a rehabilitation loan„
an'applicant 3s identified as either an owner-occupant of a one-or two-dwelling-
unit:-property:"or aniinvestor-owner. For purposes of determining', an applicant's
income; an'applicant must be identified'additiom lly, either as a person or
other`legal'entity, as,defined'below.
a ,Person.' The term "person" means one or more natural persons, who either hold
legal itie to, or. occupy under a land salescontract, a property to be
rehabilitated.
b,t Other Legal Entity. The term "other legal entity" means any legal entity other
thana,"personl', such as a partnership or corporation that holds legal title `
toproperty to be rehabilitated. "Any "other legal entity"'within-the meaning
,a
of this: definition is also an investor-owner.
SOURCES
OF'FUNDS AND AMOUNTS COMPRISING' APPLICANT'S' INCOME. The following is a
l�sting,o t eTelements comprising income or'purposes o a rehabilitation grant
and/o"r'loan iExclusions', from intone applicable in special circumstances are
"� stated infparagraph,5 below.
a Portion'of Income Derived from Rental Unita.
If the property will contain
<moretthan:onewelling unit. after re a ilitation, that portion of an applicant's
:.
is derived franihe property shall be reported on Form CDR-7660,
„income,.that
block'C; lihe 3;'as4a.nef figure' determined as follows:
„
,,(1) Net�Ineome.��The'net income from the rental units in the owner-occupied
propertyao be rehabilitated ,is the, gross rental incase „less expeditures
allocable 6' the.rental units.' These'.allocable'expenditures including
payments; )n the basis of an average of one or more years for mortgage
, or land contract principal and! interest, mortgage insurance premium,
,.",service charges,-hazard insurance, real estate taxes and',special'assess- '
ments; maintenance and repairs', heating and utilities, and other cash
expenditures for the property such as advertising vacancies. If the
applicant has :'not owned the' property, for one or"more'years, the Rehabilita-
tion Financial Specialist shall estimate the income and ,,expenditures
n' on;the,avail'able,experience. " -
(2) 'Allocation of:Expendituren to Rental: Unita. The allocation of expenditures
J,
to, e.rental;,units maybe esti lisped by dividing ,total monthly expendi-
tures'for the entire property by the nuImber'of',units in'.the property.
i, The're;ultisthe'shared,expenditures,all6cableto the owner-occupied
,
22-1
IRehabilitation Financing Handbook
4/77
Idwelling units, which when subtracted from the expenditures for the
entire property, produces the monthly expenditures allocable to the ren-'
I tal units (i.e., often units are rented with heat and 'water lbut under
separate electrical meters; in these cases, the heat and water are
shared expenses but the electrical cost to the tenants isnot part of
Ithe building expense).
(3)_ Net Rental Income on Form CDR-7660. The monthly expenditures allocable
to the rental units, su tract rom the gross rental income from the
property;: produces the net, rental income to be entered on CDR-7660,
block C, line 3.
b. Portion of Income 'Derived from Roomers. If the property will contain rooming
units, that portion of an applicant's income that is derived from roomers
I. shall be.reported°on Form CDR-7660, block C, line 3, as a net figure
determined as follows:
(1) Net Income. The net income from the roomers in the owner-occupied
property to be rehabilitated is the gross rental income, less expendi-
I tures allocable to the roomers. These allocable expenditures including
payments, on the basis of an average of one or more ,years for mortgage
or land contract principal and interest, mortgage insurance premium,
I` service charges, hazard insurance, real estate taxes and special
assessments,,maintenance and repairs, heating and utilities, and other
cash'; expendituresiforlthe property forlone or more years, the Rehabili-
tation Financial Specialist shall estimate the, income and expenditures
Ion the available experience.
(2): Allocation o Em endituies to Roomers.' The allocation of expenditures
A f p
o e roomer may a establishedby determining the percentage of floor
I ° space, that is used exclusively by the roomer(s). The allocable`
1; r expenditures shall bereduced by the percentage'of floor space as
calculated 'above.
C.!t A Zaeant'fh7:o Is 'a' Person. r Income .of anapplicant who is a ,'.'person" ,includes
the income of the.applicanf and his, family.', The applicant's family includes
the applicant an any other person or persons related by blood, marriage, or
operation°;of law, who share the same dwelling unit. If ownership of .the
property ;rests in more than one person, the applicant is each owner and
family. ;The applicants income, therefore,'.is the sum of the family incomes
I of.all applicants.Anapplicant's income is established on an annual', basis, `
it 'the, timeof applying for a rehabilitation grant and/or loan; and includes:
Theapplicant's earnings.
I (2) Spouse's earnings.
(3) Other family ;members living in the hone, if their employment is,a
i• definite characteristic of family life.
Excluded is the income of an adult family member, other than the.
applicant.and;spouse, who does not have an ownership interest in the
property, but included are any funds contributed or paid to the
,
22-2 �.
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Rehabilitation Financing Handbook
4177
(1) Owner-Occu ied Property. The applicant's income with respect to a
re a�ilitation loan on an owner -occupied property shall be reported
on FOrm.CDR77630, as follows: the gross rental income from the
property to'be rehabilitated•shall be included in block D, line 5,
"Gross Income from Real Estate"; and the expenditures in block E,
'Wonthly Housing Expense" on lines 1 through 9, as appropriate.
(2) Investor -Owned Pro ert . In the case of a loan on an investor-owned
property, jncome shall—be reported on Form CDR -7634A, block A, line 2;;
"Net Income from Rentals", includes the actual net income from all
other rental property. Similarly,:financial statements submitted in
support of Form CDR -7634A shall reflect actual data as of the ',reported
date.
(a) Purpose }or Requiring Actual Data. The primary purpose and use
oFonn,CDR-7634A, or financial statements, is to assure that a
rehabilitation loan is not made to an insolvent applicant,; whether
or'not'the property for which the loan is sought can produce
sufficient: revenues.
(b) Firtdi Acce table Riek in Mar final Cases. Generally, a rehabili
ration loan, secure cow unsecure , shall not be made with respect
to an I investor-owned property, if the property clearly, cannot
produce' sufficient revenues to satisfy all expenditures related to
ownership, operation, and management of the property, including
repayment of the rehabilitation loan. An exception is a case in
which the ability, of the ,property to produce sufficient revenues
appears'Ipossible,;but marginal. In this circumstance, anapplicant's;
,strong;financiai condition and ability to repay may, be used, by the
"staff to supporta recommendation'to the lender.
i 1
Y:lEstimating Income and ense (CDR -7643). The information obtained
,+ :on Form: CDR 7643As to furnishAntormation'on the revenues Ghat can
. produced,by the property. The income and expense information
tion Form'iCDR-7643,; is estimated for the property.afterrehabilitation.
The estimates of income shall be,realistic ,in terms of reasonable
f•i
':expectation of the ability,and.,likelihood 'of the rental market in
p the property area _to pay'the proposed rents: The estimates of
' expenditures shall be realistic,,taking into account the rehabili-
tation work to be done.
5:1' EXCLUSIONS AND ADJUSTMENTS TO APPLICANT'S INCOME:'
a Grants. Deduct the following amounts from gross income:
'(1) `$251per child, per month (child must be living in; the home, under 18
+ ears'of or age,; full'ctime student' dependent).
y
(2) Deduct•10% of gross income for taxes (persons not retired or disabled),
i,
1:
'(3)'.,.Deduct 25% of retirement benefits, disability benefits, or Social
Security benefits.
. �, Ifs• i'''
22-4
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___��'
Rehabilitation Financing Handbook
4177
5. 'BORROWER'S RICHT OF RESCISSION: SECURED LOANS. Under the law, certain borrowers
have the rigt, within a 3 -day period, to rescind the entire', loan transaction.
This right of rescission applies to rehabilitation loans, secured by mortgage
or deed of',trust,„on residential property, owned and occupied by a borrower
who'is a'natural person.
6. NOTICE OF OPPORTUNITY TO RESCIND TRANSACTION. Borrowers entitled, by the pre-
ceding
rec ing paragraph 5, to rescind the loan transaction shall receive a properly
completed Notice of Opportunity to Rescind Transaction in the format which appears
in Appendix 2.
a. Furnishing Notice to Borrower at Loan Settlement. The Financial Specialist
shall give the borrower -two copies o e notice at loan settlement, and
prior;, to his execution o mof rtgage and note. The notices nature and purpose
shall be explained. One additional, or third copy, of the notice shall be
signed,by;the borrower so, as to evidence i s receipt of two copies of the
notice. 'The receipted copy shall be retained by the City in its loan.
application file'.
b. Format o'Notice.= The City shall, on its o4m letterhead, reproduce the
notice, both ront and back, as it shown in Appendix 2. The text shall
consist of the same language, with blanks completed, so asto show'the
application number, loan settlement' date, deadline for rescission (three
bus iness,days, following '-loan settlement date). The ,paragraph entitled,
Effect: of Rescission” shall appear on the reverse of the notice. ,The size
bf.the.text on both sides'of the.notice shall be not less than 12 point
bold-faced type'.as shown'in the Appendix 2
c.Three-8ai Riecission Period. To compute the runningof the 3 -day rescission
,period or, entry. .;on.the notice, treat the 'date o£ loan settlement on which
a borrower. receives ,the :notice as,',Day Zero and the next business day there-'
.,° after"as Day.l,yetc: Three;busine'ss daysmust elapse following loan settlement
date to`'complete the rescission. period. Abusiness day is any calendar day
;'except Sunday and:the following holidays oh ..the ;dates established"by,'.,Federal
y!', law New:', Year's Day, Washington's Birthday, Memorial Day,:Independence Day,
or -Day, -Columbus Day,'.,Th
, Veterans Day,anksgiving, and ,Christmas.
No Disbursements. The Fina Specialist shall make no disburseaent
jromtTe rehabilitation illitation escrow' account,, with respect to the borrower,
durin ithe'`3-da rescission period. In this re and�ithe mortgage payoffi
check in connection with any; refinancing (referred to in Chapter.11l)
shall be dated as the'day next following the last day. of the rescission
'period ,,withl'Ae amount of the check reflecting 'accrued 'interest and
other charges.accordingly. The check shall neither'be released by the.
Financial Specialist nor endorsed by the borrower before such date.
(2) Prompt Recordation. In every case, the Financial Specialist shall re-
cord promptly; after loan settlement the mortgage, deed of trust, and all
ingtrupents necessary to perfect the'loan security without waiting for
expiration of'the 3 -day rescission period.
a
23-2'
1
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Rel bilitation Financing Handbook
7. CANCELLATION OF LOANTRANSACTION BY BORROWER. be loan transaction shall be
considered-canceled if the borrower's notice to that effect is given within
the required period.' Notification by mail shall be considered given at the time
mailed as indicated by. the postmark; ;notification 'by telegram shall be considered
given at the time filed for transmission;' and notification by any ether writing
shall be considered` given at the time 'delivered to the Civic Center.
8., ACCOMPLISHMENT OF RESCISSION.' It is expected in most cases that the borrower's
rescission will be accomplished by his mailing or delivery of the notice,
bearing his signature and date under the cancellation recital. However,
rescission may be accomplished by any written communication signed by the borrower
or a(telegram sent by the borrower. Oral communications cannot accomplish
rescission,. but they should be followed up by the Financial' Specialist to obtain
written rescission.
`9!- PUBLIC BODY'S ACTION'ON RECEIPT OF WRITTEN REQUEST FOR RESCISSION. Upon the
Financial Specialist's receipt of any timely, written:communication'signed by
!, the borrower; or of a`;telegram sent by„the', borrower, the Financial Specialist
shall follow; procedures for cancellation set forth in Chapter 10. In lieu of
the borrower's signature in block F of Form HUD-6230C Cancellation of;Rehabili-
tation Loan for Residential Property,. the Financial',Specialist'shall type in
block.F �
the:followin g:
"'Borrower's signature on appropriate Notice of Rescission, as required
"under Truth in Lending Act”
a Refund of Application Fee Within Ten-day Deadline Period. The law requires
tTiat, within,: 10 days of receipt by Specialist of an appropriate
p;. ,?written notice ofxescission, the application fee shall be`returned;to the
applicant and action to, effect termination of any lien created by a,mortgage
f' trust 'shall be'completed:� (See`Chapter 17)
(1) Re and Check; The Financial Specialist shall make the refund by check
Na i, rawn�on�the rehabilitation escroV account.
'Releaee of Liens Upon''Res .8sion. Appropriate release of liens'shall
e'obtained by.the Financial Specialist submitting to the City Attorney's
office a completed Form CDR-6230C.
I
b Scope of Rescission Procedure. The foregoing rescission procedures apply
"'only to:,rescissions requested by the borrower, within the 3-day rescission
period,F,as described in this chapter, and not to other cancel lations:as
�— �;
.f.,described! in Chapter,l0..
a
104,,SUBMISSION OFYCOMPLIANCE STATEMENT AT POST SETTLEMENT. The Financial Specialist
,
s ll submit a.canplet Form,,CDR-6241, Certi ication as, to Compliance with
j Truth in Lending Act!,with the; other documents required to be transmitted to the
i
--,!-applicant at post settlement in Chapter 11.
a; 23-3.i
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WE THE UNDERSIGNED DU HECzEBY OPPOSE THE INSTALLATION OF METERS
IN IOWA CITY TAXIS FOR ONE OR MORE OF THE LLO;;ING REASONS.
1. COST OF MORS MIGHT CAUSE RATE INCRWES.
2. INS'T'ALLATION OF METERS WILL NOT SIGNIFICANTLY REDUCE FARE
DISCF.EPANCIES.
3. METERS 'WOULD ELIMINATE THE FLEXIBILITY OF THE PRESENT SYSTFM
4. METERS ARE 1NDORSED,ONLY BY I.NFRKUENT CAB RIDERS AAD LOCAL
POLITICAL FIGURES AND ARE NOT DESIRED BY MUST CAB RIDERS.
NAME ADDRESS PHONE
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\ ti'IE THF: UNDERSIGNED HEREBY ENDORSE THE 1NS'1' T10N OF METckS'
IN IOWA CITY TAXICAIMYFOR ONE OR MORE OF THE FOWWING REASONS:
1., METERS ARE NECESSARY TO REDUCE FARE DISCREPANCIES EVEN IF
_ .'COST OF METERS CAUSES RATE INCREASES.
2. 'METERS WILL KEEP DRIVERS HONEST AND ELIMINATE DELIBERATE
_.: _'OVERCHARGING.
3. IOWA CITY SHOULD FOLLOW LEAD OF OTHER CITIES TO STAY MODERN.
'NAME
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IN IOtih CITY TAXI WS FOR ONE OR MORE<OF THE LLO'.1NG REASONS.
1COST OF METERS MIGHT CAUSE RATE INCRL.. ES.
` 2.. '' INSTALLATION OF 'METERS WILL NOT SIGNIFICANTLY', REDUCE FAiE
DISCREPANCIES.
3. METERS WOULD ELIMINATE THE FLEXIBILITY OF THE PRESENT SYSTn11
4. METERS ARE INDORSED ONLY BY INFREQUENT CAB RIDERS AND LOCAL
POLITICAL FIGURES AND ARE NOT DESIRED BY MUST CAB RIDERS.
PHONE
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TAXI S FOR ONE OR MORE OF TH ILLO'. 1NG
TERS
CF REASONS.
1�ASUA'S.
IN I0�'IA
CITY
1.
COST OF M ERS MIGHT CAUSE RATE 1NC 5ES.
OF METERS WILL NOT SIGNIFICANTLY
REDUCE FARE
2;
INSTALLATION
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3.
DISCREPANCIES.
METERS WOULD ELIMINATE THE FLEXIBILITY OF THE
PRESENT SYSTEM
4,
METERS ARE INDORSED ONLY BY INFREQUENT CAB RIDERS
AND LOCAL
POLITICAL FIGURES AND ARE NOT DESIRED BY MOST
CAB RIDERS.,
ADDRESS
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WE THE UNDERSIGNED,' HEREBY ENDORSE THE 1NS'TA TION OF METERS
IN IOWA CITY TAXICA3WFOR ONE OR MORE OF THE FCWWING REASONS:
1. METERS ARE NECESSARY TO:REDUCE FARE DISCREPANCIES LVEN 1F
COST.OF METERS CAUSES RATE INCREASES.'
2. METERS WILL KEEP DRIVERS.HONEST AND ELIMINATE DELIBERATE
OVERCHARGING.
3.
IOWA CITY SHOULD FOLLU-4 LEAD OF OTHER CITIES TO STAY MIODERN.
NAME ADDRESS PHONE
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WE THE UNDERSIGNED.,,,,DO'HEREBY OPPOSE THE INSTALLATION OF METERS
IN IOWA CITY TAXI S FOR ONE OR MORis OF THE�LO'S1NG REASGNS.
1. COST OF'MMERS MIGHT CAUSE RATE 1NICREWES.
2. INSTALLATION OF METERS WILL NOT SIGNIFICANTLY REDUCE FARE
DISCREPANCIES.
3. METERS WOULD ELIMINATE THE FLEXIBILITY OF THE PRESENT SYSTEM
4, METERS ARE INDORSED ONLY BY INFREaUENT CAB RIDERS AND LOCAL
POLITICAL FIGURES AND ARE NOT DESIRED BY MUST CAB RIDERS.
NAME ADDRESS PHONE
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WE THE UNDERSIGNED, Ab ENDORSE THE INSTAA4TION
OF METEfiJ
IN IOWA CITY TAXICA OR ONE OR i4ORE OF THE F 1YIING
REASONS:
1. METERS ARE NECESSARY TO REDUCE FARE DISCREPANCIES EVEN IF
"._.. �. '. -COST, OF METERS, CAUSES RATE INCREASES.
' 2. METERS WILL KEEP, DRIVERS HONEST AND EL114INATE DELIBERATE
OVERCHARGING.
_3. IOWA CITY', SHOULD FOLLOW LEAD OF OTHER CI'T'IES TO
STAY MODERN.
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` WE THE UNDERSIGNED, &HEREBY ENDORSE THE 1NSTAJ�TION OF METERS
IN IOWA CITY TAXICAB OR ONE OR 14ORE OF THE FOWaING REASONS:
1. METERS ARE NECESSARY TO REDUCE FARE DISCREPANCIES EVEN 1F
-____COST.. OF METERS CAUSES RATE INCREASES.
2: METERS WILL KEEP DRIVERS HONEST AND ELIMINATE DELIBERATE
'..._OVERCHARGING.
3. IOWA CITY SHOULD FOLLOW LEAD OF OTHER CITIES TO STAY MODERN.
WE THE UNDERSIGNE�DU HEI'cEBY OPPOSE THE 1NST�LA'1`lUN OF fdEl'ERS
IN IOWA CITY TAXI S FOR ONE OR MORE OF THc LLO',,*1NG REASONS.
1. COST OF METERS MIGHT CAUSE RAPE INCRL SES.
'ICPN1111Y REDUCE FARE
2. INSTALLATION OF 14ElERS HILL NUT SIGNIF
DISCREPANCIES.'
3. METERS WOULD ELIMINATE THE FLEXIBILITY OF THE PRESEi'.1' SYSTFA
`4. METERS ARE INDORSED UNLY BY INFREQUENT CAB RIDERS AND LOCAL
POLITICAL FIGURES AND ARE NOT DESIRED BY MUST CAB RIDERS.
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WE 'THE UNDERSIGNED DO HEREBY OPPOSE THE INSTALLATION OF METERS
IN IOWA CITY TAXI S FOR ONE OR MORE OF THLAbLLO'.';lNG REASCNS.
I.' COST OF M RS MIGHT CAUSE RATE 1NCRLMWES.
2.! INSTALLATION OF METERS WILL NOT SIGNIFICANTLY REDUCE FARE
DIS CREPANCIES.
3. METERS WOULD ELIMINATE THE FLEXIBILITY OF THE PRESENT SYSTEM
4
METERS ARE INDORSED ONLY BY INFREQUENT CAB RIDERS AND LOCAL
POLITICAL FIGURES AND ARE NOT DESIRED BY MUST CABRIDERS.
NAME ADDRESS PHONE
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17,
WE THE UNDERSIGNED, HEREBY ENDORSE THE 1NST#,4TIOlq OF METERS
IN IOWA CITY TAXICAM FOR ONE OR 14ORE OF THE F OWING REASONS:
I' METERS ARE NECESSARY TO REDUCE FARE DISCREPANCIES EVEN IF
,. COST:OF METERS CAUSES RATE INCREASES.
2.! METERS WILL'' KEEP DRIVERS HONEST AND ELIMINATE DELIBERATE
{ _ — __—OVERCHARGING.
--_—OVERCHARGING.
= 3: IOWA CITY SHOULD FOLLOW LEAD OF OTHER CITIES TO STAY MODERN.
NAME
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PHONE
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WE THE UNDERSIGNED, Ah ENDORSE THE INSTAjTION OF METEriS
IN IOWA CITY TAXICA OR ONE OR MORE OF THE FG WING REASONS:
1. METERS ARE NECESSARY TO REDUCE FARE DISCREPANCIES EVEN IF
COST OF METERS CAUSES RATE INCREASES.
2. 'METERS WILL KEEP DRIVERS 'HONEST AND ELIMINATE DELIBERATE
_.. .. :. OVERCHARGING.
3. IOWA CITY SHOULD FOLLOW LEAD OF OTHER CITIES TO STAY MODERN.
NAME ADDRESS PHONE'
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:Cemetery -Forestry Division •
May Monthly Report
Page 2
D. Plant replacement for City streets (trees destroyed by
vehicles or vandals and replacement money recovered)
on-going projectcontracts —completed or terminated
E. Spring planting
with June l deadline..
F. _Preliminary work new water line for Cemetery.
G, preliminary work' shop roof replacement
V. Special Projects - Superintendent
draft to Administration. adopted
A. Weed Ordinance Rules and _Schedule of Fees P
g, Cemetery Ordinance, passed by Council.
by, resolution and/or P ssedb is/Firms:
C, WithlotherDivision/Dep
l:' House move with Inspector Siders.
2:' Tree problems with'Iowa Illinois.
with Legal.
3 Braverman propert Y
' D. Spoke to Sunrise Optimist Club'. ram.
E. Advance preparation for Deeded Body Program.
F,
Attended film program "Engineering an;Ag
G.",Letters to all interested parties regarding Cemetery
Rules and
Schedule of Fees.
VI.. FY 77 Goals
k' Ordinance completed.
A. Cemetery g oin well.
B, Cemetery,. record updating
progress.
C. 'Survey by Engineers roved public ,relations -
D, ^Advance notice of projects for improved
i excellent when; distributed by Staff.
E. Improved, operational efficiency:
in May1103.5*
i, le
h
ours,dur g
Actual`peoP
757.5
1, Regular
y.
du
ti
e�S 279'.5
Special duties
S
3, Rest Periodsi, 5
'
9$ of actual May regular working time was spent outside
the Cemetery.
flects
*None of this recorded time Forestry the time of the
Superintendent of Cemetery- •
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' WILL J.HAYEK
JOHN W. HAYEK
C. PETER HAYEK -
HAYEK, HAYEK& HAYEK.
ATTORNEYS AT LAW
110 EAST WASHINGTON STREET
IOWA CITY, IOWA 52240
June 6, 1977
AREA CODE 519
337-9606
The Honorable Mayor and
City Council of Iowa City
Civic, Center
Iowa City, Iowa 52240
Re: Amerex Apartment Complex
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Mayor and Council Members:
On April 12, 1977, I'Amerex Corporation filed an application with
Glenn Siders, the City, Building Official, for a building permit to construct
three 12 -unit apartment buildings and two 97car garage buildings on, the
Amerex property near the Dubuque and Interstate 80 interchange.
I have reviewed the plans for the new building with Mr. Siders
with particular reference to the directive of the Johnson County District
Court filed in 1974 in connection with Amerex Corporation, et al, ,
Plaintiffs, v. City;of Iowa City, et al., Defendants, Civil No. 41548. In
that case,'] in its ruling upon our motion to clarify judgment, the District
Court stated ,that the Plaintiffs were not to be subjected to the application
Of, the Large Scale Residential Development, Ordinance for its original
complex of 108 apartment units. The Court's reasoning on that point was
` that these'!108 units were approved'by the County in 1964 and that ordinance
did not exist as of that time.
,
The apartment complex described in the plans just filed is some-
what different from the original complex. The buildings are configured
somewhat differently and there are some other differences in the plan
layout. However, generally, L in my opinion, the overall plan is fairly
close to the original plan when considered in light of the fact that over
ten years have passed since that original plan.
I; can see no strong or compelling City interest in arguing that the
deviations that exist between these two plans would be such to compel
application of the Large Scale Residential Development Ordinance, the
Tree Ordinance, and,the Storm Water Detention Ordinance. By the way,
Ilbelieve that the latter, two ordinances would not be applicable for the
same,reason that the'Court stated that the Large Scale Residential
Development Ordinance would not be applicable.
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MUIowa Research
RIOE!VED JUN
Center on Aging, Inc.
1977
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