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HomeMy WebLinkAbout78-030i iP IL f uy CITY OF PRIOR,, SAKE, MINNESOTA :,. 53372 .. RESOLUTXON 78 -30 A RESOLUTION'APPROVXNG HOUSING ASSISTANCE PLANL _ MOTION BY: Busse pSECON&D BY: Watkins Whereas, the City of Prior Lako, on April 27, 1978, authorized the submission of a Community Development Block Grant Preapplicaton on their behalf by the County of Scott to the Department of Housing and Urban Development, and Whereas, the Department of Housing and;Urban Development has invited the County of Scott to submit a full application for the Scott County Home Improvement Grant,Program in the amount $301,300.00 and, „ Whe the,City of Prior Lake must, as a condition of receiving funds under the Community Development Block Grant program, approve e Housing Assistance Plan that sets forth housing needs and housing t goals. NOW THEREFORE BE IT RESOLVED, that the City of Prior Lake after consideration of the Housing Assistance Plan here attached, approves the,Plan and directs its submission to the County of Scott for incTUtioh'in the full application. ., Passe?,and adopted on the 11th of September, 1978. ;1 YES NO Stock X Stock OBissonett X Bissonett Busse X Busse Hafermann X: Hafermann Q fVatkins °` X Watkins a, f1 u Michael A. McGuire „ - City Manager fl: \ THE CE''NTEk QF LAKE COUNTRY a Form Appmved OMBNo.6 -IMr 6 • OR 1. NAME OF APPLICANT U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM �` HOUSING ASSISTANCE PLAN Z. APPLICATION /GRANT NUMBER CITIES PROGRAM ' SINGLE PURPOSE' GRANTS �ic3"' - 7 8 D ES�2 7 0 Q 3 Q u f, • 3. PERIOD OF APPLICABILITY 4 ' ORIGINAL Q REVISION. DATE FROM January, 11, 1979 TO %' December 31 1979 AMENDMENT. DATE `��.� �5 PART 1. HOUSING CONDITIONS' AVAILABLE HOUSfNG TOTAL UNITS OWNER RENTER (sf (b) lei I All Unla 21,106 11,685 421 (sons of fines 2 and dl 382 2 ; St andard 0 5x OY. lx . 3 = Vaurtdy Rata 194 155 3 . suitable tar 191 Rehabilitation F 153. 38 i{ . ✓ �Rpulrad gnfy,lf applicant Proposes goats for rehabilitation. PART 11. HOUSING ASSISTANCE NEEDS OF LOWER - INCOME HOUSEHOLDS NUMBER OF HOUSEHOLDS 0 ALL HOUSEHOLDS ALL MINORITY'' HOUSEHOLDS TYPE ELDERLY (f OF •2 SMALL ` LARGE ELDERLY SMALL r•'LANCE F FAMILY F HOUSEHOLD FAMILY d (* FAMILY (S o'' TOTAL nsl and rap eon TOTAL' lots Persons p HANOI- , CAPPED rsorK) Person l CArPCO (al Ib1 Ic)... Id1., �U) pl Ig! Ib) r; e Owners .. 32 2 a 0 o ,12 0 U ., 0 0 0 Ord 30 14 JD ;W 5 Expected to I08 0 59 49 0 0 0 0 .. Reside % —' Percent T 100% t3j, % 47A6 % MU0.7067 feyil w t i _ NW of Z Pages a i PART 111. GOALS FOR HOUSING ASSISTANCE TO 40WER•INCOME HOUSEHOLDS OF ALL HOUSEHOLDS ELDERLY (1 SMALL LARGE PERCENT TYPE AND SOURCE OF p arsons) FAMILY FAMILY BY ASSISTANCE TOTAL and 1'1 or (5 or HOUSING HANOI- Lest persons) more persons) TYPE = CAPPED f.l (b) (ol td1 1.1 1 :Assistance for Homeowners 11 $ p 5 + e ' 2' Now Construction 1 t� t S, sir ?fi �? ti 9 Federally assisted, , + i wig „j;i;.... 4 Othsr'P Rehabilitation 5 '+ 6 Federally assisted 7 �Y ♦ _ 'Other KHFA. - 1 1 0 0 yt.�Yi 8 Assistance for Renters 8 New Construction IL5 2171 1% 14 10 Federally assisted 45 20 1 69 % 19 Rehabilitation ,�.`:. .r, l,.tr,ka, 19 Federal) assisted 11 Other* m yr k t 1 Existing 7 18 Federal) essisted 3 17 Other* 181 Total, line 41ine 8 1 Pe n' H useh d T 100% 31 % 1 38g % 30 PART IV. GENERAL LOCATIONS (lobesubm'r ;tedonmags inthisappheallon J PART V. NARRATIVE (Attech eddi orlilAcets,11appropriate) e '1. OaeriOO the sources of assistance proposed under the eengory "Other ", . Z. • Describe any siaecial housing conditions or housing assistance needs In the community. Including the needs of any identifiable tpmente of the total group of lower-income households; e.g., minorities, female-headed households,'hondicepped. S. Describe )hose cations that the applicant wili take to feeilitato she proyidon of onisted housing and to further fair housing for minoritiee and women. " �J CHECK IF THE APPLICANT WISHES TO RME'N STi►TE HFDA HOUSING PROPOSALS r � i M Scott County e, home Improvement Programy Page 1 Scott County Home Improvement Program u > I. GENERAL. The following sections contain provisions to regulate the distribution of 'Scott County Community Development Block Grant funds for home improvement to help provide decent housing and a °suitable living environment for persons or families of low and moderate income by the elimination ,of conditions which ti4 are detrimental to health, safety and public welfare at a'cost which they, can afford, and to conserve, through maintenance the ;existing housing stock. A. Applicability and.Scope of Rehabilitation Grant Provisions - The provisions contained in the following sections shall govern the processing and distribution of :Community Devel— opment Block Grant funds available to Scott County-approved and funded by the Department of Housing and Urban Develop - ment as >a part of the 1978 Community Development Block Grant Program. r, B. Area of Operation. Grants will be made available to eligible residents of all Scott County townships and those municipalities G which have" entered into a cooperation agreement with the Scott County Board of Commissioners prior to May 1, 1.978. ° C. Effective Date of,these Provisions. The Scott County HomeI' Improvement Grant Program will become effective on the date approve& by the County Board of Commissioners, D. Administration. In accordance with the applicable govern - ing laws of the State of Minnesota, the Scott County Board of Commissioners will enter into a contract with the Scott `( County Housing'and Redevelopment Authority (Authority) for the admiFnistration; and disbursal of funds for the Home Im— provement Grant Program.`, } II. GRANT ELIGIBLITY REQUIREMENTS. Since home improvement grants are .•' intended for hardship cases to avoid displacement of homeowners who have no other means•of financing, repairs and improvements which must be made to their homes, it is therefore, -a general requirement of this program that home improvement grants shall not be made to homeowners who have substantial financial re- ,• sources for these purposes. �f Scott County Home Improvement Program Page 2 5 The eligibility of applicants home improvement grants will be 'based the on findings tha" the family or individual meets the residency requirement, maximum income and asset limitations,` eligible improvement provisions of the program and that the properties are found to be eligible. A. Residency Requirement. An applicant must be a resident of e Scott County and the owner, or purchaser under a land sales } contract, and occupant of the home he or sheds planning to improve. B.. Income and Asset Requirements 1. The Authority is responsible for determining he eli g ` gibility of the applicant. a 2. The applicant household must have an adjusted gross " annual income at or below the income threshold identi- fied under 3 below. The adjusted gross annual income ° will be arrived at by subtracting the Deductions =- from the Household Gross Annual Income in:the following formula: V a Household, Gross Annual Income. r , (1)- may NOT be based a temporary condition 'such as unemployment, if such condition is deemed to be of a short or non- r' nature. In come in these cases must be• projected on what the applying household can seasonably be ex- pected to receive as income when normal �circum -" stances resume at a reasonably certain .date in the coming year. (2) must include income for self - employed persons based on an average of the'last two ears of Q income, as, determined by the Authority upon review of the previous two years' IRS forms " (Schedule of Business or Farm. Profit and Loss). Normal business expenses,may be deducted for the purpose of determining' actual income for " inclusion in Household Gross Annual Income. P_opert and equipment de reciation are not allowable deductions ?+ a s pp t Q 3/ 9 Scott County j- Home Improvement Program Page.3 (3) must include net rental income from all prop- erties owned and rented but by all members of the household, including rents from the property to be improved with proceeds of the Grant. The following expenses may be deducted for the pur- poses of determining the actual income - for in- elusion in the Household Gross Annual Income: mortgage interest payments, utilities, taxes, insurance; and maintenance costs. in no even t shall such deductio gross rental -. , income. (4) ,must include projected bonuses and overtime, as determined by the Authority through con- tacting the applicantis employer. The amount may be basedxon prior years' figures or on = average amounts awarded to other employees t with the same status. (5) Any income determination which results in 'a net LOSS of income must be considered as $0 income. That is, an income loss from one source may not be subtracted from a separate source of income- for purpose of determining total Household Gross Annual Income. (6) Any Educational Grants, including VA;Benefits, - which -are paid directly to the individual must be included as income. Grants or scholarships which are paid directly to an educational in- stitution are not included as income. b.' Deductions. ( -1) an amount up to $750 for child care expenses. ° Child care expenses are defined as those ex— `` penses eligible for deduction under U.S. f nal Revenue Service tax regulations. Veri- fication of such expenses, in the form of receipts, cancelled checks, etc., must accompany / the Application. (2) the income of an resident (except the primary income recipient) who is under 18 years of age +' or is a full time student, and who is related by ' blood, adoption, or marriage to a resident in- come recipient or his /her spouse. To be deductible ;such income must have been initially in the ousehold Gross Annual Income. i Scott County Nome Improvement program ° " Page 4 - v- 0 Note: Income received by the parents on be— half of ieinor children is not deductible.<; This includes but is not limited to, Social Security "Survivor BEnefits, child ments and AFDC. support pay — (3) the enfAre amount received by the household for foster care. Such income is that received under the direction of an ° ' profit child placing public or private, n the ' care -and maintenance individuals whichor were placed in V the household b Verification of such y "such agency.. placement must accompany the Application. (4) an amount equal to the of those medical and other expenses which the Authorit deter- ,. mines to be extraordnar (5) an amount equal to that anticipated income which is deemed b the Authority to .be of a non— recur— a ring nature. Items for inclusion under this category may include: cash sale • of property, receipt of one —time survivor benefits, sale of e stocks, etc. u 3• -The table below identifies the maximum ad'usted gross annual income b f J Y amily size allowed for cipant s ; program ppaartrt i — receiving home improvement grants fun with Community Development -Block *I , °Grant funds. j Famil Size y — Maximum Income 4:. 1 2 $10,850 3 12,•400 4 13,950 5 15,500 6 16,500 ? 17,450 a o 8+ 18,450 19,400 O Q \`1 S. 'Applicants, who have avail able, "to them .grants with greater benefits than:a ail�abilo under this program 'shall be ineligibl e -for Home Improvement Grant _prdgram funds. 5• E=ligible applicants under the dome Improvement Grant „ Program wi.1.1. be enedura ec� to " g participate in the = T" >. Minnesota HoUsing Agency Home Loagjmprovement •�� Program; F . 41 rlf e C. Eligib +Ie APP14cant "Properties. A home i10 `royement A grant shhall be appl °:Yed towards` the home improvement costs of "the , ' ppli cant �is property' (principlt residence of the applicailft. ETigibTe rr' applicant properties •shall :. 3 OWN" Wills MMj J Scott County ,110me Improvement Program Page 5 lzp 4- The value of all assets shall be defined as the current market value of an item listed minus existing indebted- ness on that item. The sum 'of the cash value of the assets of the applicant's househould, as defined below, shall not exceed $30,000. Por the purpose of the Home s Imporvement'Grant Program, assets shall include: , „. A. Cast on`hand or in the checkingr aceounts. ai. CasW in savings accounts, including accounts held in trust. e. the cash value of securities or U.S Bonds. t. j d. the redemption value -of lifewinsuranee policies. ` jw e• the current market valu'd of all interests in real estate, ,exclusive 'of the structure to be improved and A_ parcel •of real property of not more than two ` (2) acres on which the structure is located. In- / aludgd in this determination is any land in which any resident of the household holds tit=le 'and is " selling on Contract for. Deed, ' -The value of Contract for D Deed property shall be defined as one hundred per cent._ (100 %), of the outstanding balance on the contract.: f. .all other property'` exclusive of, household `fur'nish- "� i�ngs, clothing and one automobile.- This seetion.in- eludesbut is not limited to: farm equipment, boats- '? snowmobiles, motorcycles, business machinery, business ihventory, farm s stock and Additional vehicles, ' ' # � r a Scott County Home Improvement Program Page '6 1. 'be owned by the applicant, or the applicant must be the pureh�ser- occupant of the property under a contract- for -; deed or any similar contractual agreement for the purchase of real property;' 2.- be "the home currently occupied by the applicant; 3 occupied by a single household; ^Y 4. not have a use in violation of city cr county pccuparicy codes and ordinances; , 5. have a dwelling unit whose initial building "permit, date is prior to January 1,`1967 or is in need of repair to correct deficiencies that are hazardous to the applicant's health and safety'as determined by the Authority; 6. not be'a mobile home or trailer; and 70 'not have a "current estimated market value of more than X40,000 as recorded in the Real Property Tax Roll in the Scott County Assessor's office. D.'`.. glgible „Property Improvements. 1. Proceeds of each grant may be'used to improve property - to increase compliance with state, county or municipal health, housing, building, fire prevention and housing maintenance oodes'or other public standards applicable,to housing in the County. 2. Proe6e'ds of each grant may also be` applied `to the cost I ” of improvements made for the purpose of making the home n more habitable. These improvements may take th e form of permanent general improvements; however,'to insure that ,. grants will be used for basic and.necessary items and not s for luxury items, the definition of permanent; general ' improvements is as follows: "Permanent general impoovements shall include additions, , , alterations renovations or repairs upon . real propert p y Orin connection with existing structures which substan- ttally protect or improve the basic livability or utility; of the property. ,Improvements shall not include material,,, fixtures, or landscapes, of a type of quality which exceeds " that customarily used in the locality for properties of the same _general type as the property to be improved."' J J �P �k, Scott,County vem6t Program Home-Impro Page 7 Ell :�3 All, Work or construction Oomple ted with giZ�nt proceeds must be in compliance with Se'ctiop - 8 Exxistilie, Hout 9�1 Standards, its set forth in 24 CFR- 882 albnj " other applicable, buildifig-and housing codes, and" g\ rovement to �owncr-occupIed ho No applicatibri,f6r imp usin so ey 0.0au. �,the pro shall be denied' 1' 'b si ;p videnta place such 49 wit %pting in full compliance h all such 66.de's ty \1 and, sta 'd j4i't'kwhen, as etermirk ie Authori the h A ed by tt Iif� of- the end upon estimated qcbnomio f residency r erii�ation o I ": - of the'sttucturo bythe Owner. 4. Grant procteedi may be to finahoe that" t" COMO )'tdnths from the'date of '"jIted. within',nine 0 the issuance oir-,"a."Graht Commitment., letter, the:zAuthority. IN\ Atit prity at, i h�' "" � ts,'4iscretion may grant'an or Nowev �' the n', if it sp�xips'the'pur 'es 'e priS o extensio pos of t4 am N grants,'shall 'he paid 'to Program participants for improvements; made ufider"this'irogram �wh6, have* sold home pri' i� to certification of improvements by,the. Aathori The, er must'agree dhd,grani' 'the Auth a lien - on the real estate improved witt� 0 eds-,.� The agree with I �., t4 ��Fant pro e t e.'Authority that if t -Ownei st further he. 4 improved, real estate isotold�- t ansfdrXed otherwise d, voluntarily or 'ih�vol'L while tho ' conveye I '�ip#th of �the'bwner' owner is I "i. v n Z or byreason of , or if the rleai, eAa,". ceases for any �bason� t6" the Owner" plj�e trf;�-',esid nce:� principle, e -a, period 'of two, " (2 - of the within' I �6ars after th-oa, ate IK I repay �to e Authority sum Grant the owner shal I Tit; the fulI'ambuht'(1000, the Gr equal to a ��' N 'the date.o th f the Grant, Ip". wi, in e third OY ear after OWn6 zhall'k�.e to the Authority a suTk equal to- r pay ant seventy-rfive ppr (75%) of the amount of e'Gr fourth (4� yeAr,after the date of the,� n ehe OwnerAall repayr,to'the A6thority'a sum equk,to fifty per cent (60%) of the amount of the Grant; P withir� ' 'the ' fifth,18) and sixth (6) years after the date pof the Grant",,., the owner shall 'repay to thi Authority. 4 V punk equa to twenty-4i T per"cent ,(25%) of the' amizAnt, of thpGianti IZ N X" 10 went` costs. The._;maximum grant shall be $1,000. — = 'Tie` grant for a household whose income is at or below the "'Income B threshold may receive: a grant equal to fifty (50) pei^cent of -'the first '$5;000 of total eligible home 'M7 prqvement costs. The maximum grant shall be $2,500. =� — The' fora household Abse income is at or below the 1 = - Indome"C threshold ma ';receive a.grant equal to eighty (80) V perc�nt of the first $5,000 of total eligible"home improve— meat. costs TheIRiaximum grant shall be :$4;000. The grant fora household whose income is at or below the 'Income b thresh ay receive a grant equal to one- hundred` - (100) percent of the first $5,000 of total eligible home „ ti improvement`_costs.< The maximum grant shall be $5,000. } ` a si 3 "� `benefits received' from the Scott County home ,Improvement ' Grant Programs and those received under the MHFA Home Improve— went Grant Program within the last- :five years shall"not e exgeed ;$5,0004 - - Emergency Grant Limits Grants`to individual families,.in need of eme "rgency.�relief to undertake necessary home improvements may be approved by,. the Authority. Applicant eligibility for emergency relief grants will be determined individually by the Authority ' aril grant Amou�� may be made for the actual cost of the home improvement, rot to. exceed $5,000. `' il 9 t `Y�E .'4 A i c c=% ` Asa Scrt1.` Home I Improvement Program Page 1 10 2. Households "determined to have incomes that are at or below „ the following thresholds shall be e eligible for grant amounts.as follows; Family Size Income , A Income B Income C Income b 1 person $10,95 $ 8,825 $ 6,800 $ 5,000 2 12,400 10,075 7,750 1 6,200 3 1 13,950 11',350 -" 8,750 ? OAQ 4 1 15,500 12,600 9,700 7,'776 ' 5 1 16,500 , 13, 500 - 10,500 6 , = 8 s400 31 . ]7,450 14,350 11,250 9,000 7 1 18,450 15 } 250 12,050 9,640 8+ 1 19,400 16'100' 12,800 10,240 — tf The`grant, for a household whose income is at or below the, \Income A A threshold.may receive a grant equal to twenty(20) ereent of the first $5,000of total e eligible home improve t <. Scott county Home Improvement Program Page 11 IV. PROGRAM ADMINISTRATION A. County Contract for Administration of Program. The Scott County < Housing and Redevelopment Authority will, under contract with the Scott County_;Board of Commissioners, accept the responsibility `+ for the administration of federal grant funds as included in the Scott County Program. The Authority will provide, assurances to the County that grant funds will be expended incompliance with applicable federal, state, and local °laws. The Authority will further assure the County that the Community Development Block , Grant funds will °'be expended in conformance with the Housing_ and Community "Development Act, .' of ' 10Y7 and applicobl, 6 regulations issued.by the United State Department of Housing and Urban Development. ihe.Authority's administration of the Program, shall provide the foO'lowing: " advertising and di�tributi.on of program information to Scott County residents: 2. liaison with HUD to expedite and coordinate Community De Rehabilitation Grants; 3. `receipt and processing of applications for °grants; `. 4:, counseling;Scott County residents to aid in the - 'electing v` 'financing methods to meet their needs; 5,.- coordination of provisions for chincal advice; s f a 6,:nvc�tigations and inspections to. insure. compliance with Prograhl,provisions; ivl dasbursement of grant funds in agco dance with the `Program provisions; and " 8. keeping records to fully describe Program ac ivities. Direct °costs for advertising and distribution of information, r for counseling services, application review and processing servicesii for inspection services charged�to the Program ° shall not exceed ten (10) percent of the total grant amount. B. Applicant and 'Grant Procedures. A11 applications for grants �r will be made to the Authority. Applications will be processed according to the time and date of the application by the ' Authority and with. regard to the geographical area in which the applicant resides." The Authority will review and verify all eligibility requirements and counsel applicants,.,on financing alternatives. A required inspection of the property'will'be made, by the Authority to- determine minimum energy conservation, exec trical', mechanical and structural needs of the dwelling. Afterr; issuing the applicant a report of the property deficiencies; N4 ; the Applicant will be counseled on improvement priorities and alternatives.` 4 16 _10 1 low r Scott County Home'Improvement Program .,' Page 12 Upon the finding of satisfaction with Program eligibility and , ti improvement requirements; the Authority will issue a Letter of Grant Commitment stipulating the duration and conditions of the commitment. The Applicant shall submit two (2) bids for the approved ° improvements along with a; signed'Contractor- Homeowner Warranty to the Authority. The Authority shall review and approve the bids and authorize execution of a construction contract. The Applicant may be eligible to undertake the necessary approved ' improvements,if demonstration '. of competency can be given to the Authority. Under such circumstances, Grant proceeds shall cover the cost of materials only.' 0 When the improvements subject to the - Program grant have been completed and verified by :inspection, the disbursement 6f the q grant will be made in full to,the contractor(s).by the Authority behalf .in of the occupant- household.' look c4 Y r r x o b k i ^ a P - F ..