HomeMy WebLinkAboutAgenda - 08-23-2011 - 5hORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: August 23, 2011
Action Agenda h
Item No. ,cj -
SUBJECT• Housing Rehabilitation Program - N.C. Housing Finance Agency
DEPARTMENT: Housing, Human Rights, and PUBLIC HEARING: (YIN) No
Community Development
ATTACHMENT(S):
Assistance Policy INFORMATION CONTACT:
Procurement Tara L. Fikes, 919-245-2490
Disbursement Policy
PURPOSE: To adopt Assistance, Procurement, and Disbursement Policies for the 2011 Single
Family Housing Rehabilitation Program funded by the N.C. Housing Finance Agency.
BACKGROUND: In May 2011, the County received $160,000 from the N.C. Housing Finance
Agency (NCHFA) to provide housing rehabilitation services for approximately three (3) low-
income homeowners living in substandard housing in all areas of the County excluding the
Town of Chapel Hill. One requirement of this funding is the adoption of an Assistance Policy
that governs the administration of the Orange County program. Additionally, NCHFA requires
the County to adopt a Procurement Policy that details the bid solicitation process and a
Disbursement Policy that details the payment process.
All policies have been drafted and are attached to this abstract for review and approval.
FINANCIAL IMPACT: This $160,000 award represents additional funding available in the
community for the repair of substandard housing. Specifically, this funding along with the
$900,000 Community Development Block Grant received in 2010 provides approximately $1.0
million (minus administrative expenses) available for housing repair for the next two years.
RECOMMENDATION(S): The Manager recommends that the Board adopt the Assistance
Policy and Procurement Policy for the 2011 Single Family Housing Rehabilitation Program
funded by the N.C. Housing Finance Agency and authorize the Chair to sign.
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Orange Count=y t~ssistance Pa~iicy
for the
2011 Cycle of the Single-Family Rehabilitation Program
What is the Single-Family Rehabilitation Program? Orange County ("the County") has been
allocated aset-aside of $160,000 by the North Carolina Housing Finance Agency (NCHFA)
under the 2011 cycle of the Single-Family Rehabilitation_Progmm (SFRi-1). This program
provides funds to ,assist with the rehabilitation of moderately deteriorated single-family owner-
occupied housing units occupied by lower income (less than 80% are median income)
households with one or more elderly (62+) or disabled fulltime household members or owner-
occupied units with lead hazards and a child less than -six years old. Orange County plans to
apply the funds toward the rehabilitation of three (3) houses within the Orange County.
Additional funds may be available from the Agency to address additional dwelling units,
depending upon Orange County's performance=under the allocated set-aside.
The Assistance Policy describes who is eligible for assistance under SFRl 1, how applications for
assistance will be rated and ranked, what the terms of assistance are, and how the rehabilitation
process will be managed. Orange County has designed the SFRl 1 project to be fair, open, and
consistent with its approved application for funding and with the SFRl 1 Program Guidelines.
The funds provided by NCHFA come -from the US Department of Housing -and Urban
Development's (HUD) federal HOME Investment Partnership Program.
The foam of assistance will be na interest, no payment loans which are forgiven at the rate of
$3,000 per year.
Eligibility. There are several major requirements to be eligible for SFRl l assistance:
• The housing unit to be rehabilitated with SFR funds must be located in O-range County,
and must be owner-occupied. The household occupying the unit must have an elderly
(62+) or disabled fulltime household member or a child less than 6 years old and the
dwelling unit must contain led-based paint hazards;
• The gross annual household income must not exceed 80% of the are median income for
Orange County (see income limit table on the following page) and;
• The cost of rehabilitation including all mandatory energy-related measures and lead
hazard remediation, if applicable, cannot exceed SFR11 Program Guideline limits of
$45,000. Unfortunately, not all homes can be brought up to the Program-required
Rehabilitation Standards with the limited funding available. Some otherwise-eligible
households may be deemed ineligible for assistance because their homes fail this test.
Additionally, properties are eligible only if they meet all of the following requirements:
• The property must require at least $5,000 of improvements in order to meet SFR
Rehabilitation Standards.
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• The property must be free of environmental hazards and otr~er nuisances as defined by all
applicable codes or regulations, or any such hazards or nuisances must be corrected as
part of the rehabilitation of the unit. The County's Rehabilitation Specialist will
determine whether there are environmental hazardslnuisances present on the site and if
they can be removed through rehabilitation.
• .Properties cannot be -located in a right-of-way of any impending or planned public
improvements. The County's Rehabilitation Specialist will-assist in-verifying status.
• The property cannot be located on a site that is endanger-ed by mudslides, landslides or
other natural or environmental hazards. The Rehabilitation Specialist will work v~~ithtlie
homeowner to make this determination, if needed.
• Manufactured housng_is not eligible for assistance
•- The properly -must be current with all- taxes. County staff will assist in verifying status.
• The property may not be located in a flood hazard area. (Orange County will verify
whether the home is in the flood plain.)
• T-he property cannot have been repaired-or rehabilitated with public funding of $5,000 or
more within thepast 10 years.
2x11 Income Limits for Orange County's
Single-Family Rehabilitation Program
Number Tn
Householder 30°l0 of
Median
lncflnie ~0`~/~of Median
{"Ve3-y ~~ow
Income" 60% of
~ Median
' Iucomc 30`1 of
Median (`Love
Income
1 $14,250 $2,750 $28,500 $38;000
2 $1-6,330 $27;150 $32,580 $43,400
3- $1.8,35.0 $30,550 $36,660 $48,850
4 $20,350 $33,900 $40,680 $54,250
5 $22,000 $36;650 $43,980 $58-,600
6 $23,650 $39,35fl $47,220 $62,950
7 $25,250 $42,050 $50,460 $67,300
8 $26,900 $44,750 $53,700 $71,650
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Rating and ranking of applications. There are many more SFR-eligible fiouseholds (with
eligible houses) than can be assisted with the available funds. Therefore, Orange County has-
devised tape following priority system to rank eligibie~applicants, determine which of them will
be selected fox assistance and in what order. Under this system applicants will receive points for
falling irt~ certain categories. Applications will be ranked according to which receive the most
points.
P-riority Ranking System for Orange County's-
___ 2011 Single-Family Reha-bilitation Program _
~~pecial Needs tfor definitions, see belo«~) Pt>il~ts
1/lderly Head of Household (62 or older) 4
Disabled Head of Household 4-
Disabled or Elderly Household Member (not Head of Household) - 2
Income (See Income "fable at~ove), Points
Less than 30% of County Median Income 8
30% tb- 50% of County Median Income 5
50% to 80% of County Median Income 1
In the case of equivalent rankings based on-t-he above criteria the applicant with the lowest
percentage of median income will rank highest.
The definitions of special needs populations are:
• Elderly: An individual aged b2 or older.
• Disabled: A person who has a physical, mental or developmental disability that greatly
limits one or more life activities, has a record of such impairment, or is regarded as
having such-impairment.
• Head of Household: The person or persons who own(s) the house.
•- Household Member: Any individual who is an occupant (defined below) of the unit to be
rehabilitated shall be considered a "household member" (the number of household
members will be used to determine household size and all household members are subject
to income verification).
• Occupant-: An occupant is defined as any immediate famil-y member (mother, father,
spouse, son/daughter of the head of the household), regardless of the time of occupancy;
or non-immediate family member who has resided in the dwelling at least 3 months prior
to the submission of the family's application.
Recipients of assistance under the SFR program will be chosen by the above criteria without
regard to race, creed, sex, color or national origin.
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Forms aad terms of assistance under SFRl 1. Orange County will provide-assistance to tho-se
households selected -in the form of a 0% interest, forgivable loan coverng the hard costs
associated with the rehabilitation of the home. The loan will be forgiven at $3,000 per year.
As long as the borrower lives in the homer no payments on the loan will be required. If the
recipient prefers, the loan can be paid off at any time, either in instalhnents or as a lump some
payment. Furthermore, no payment will be required- as long as the house continues to be both
owned and occupied by the household whose income is less than 80% of the area median
income. That -means a buyer who may wish to buy the property to live in, may upon Agency
approval, "assume" the Loan, and make no payments, so long as they can document that they are
income-eligible. Should an heir inherit the property -and -choose to live in the house as their
permanent residence, they may do so without having to pay off the lien, -however, the Lien
remains on the- property.
Orange County will -offer, subject to NCHFA approval and homeowner acceptance, the
possibility of having access to the Duke Power Loan Pool to finance certain energy related costs
if the lowest bid exceeds the cost limits of the _SFR Program. This will be on a case by case
basis.
What kinds of work will be done? Each house selected for_ assistance must be rehabilitated to
meet all SFR Rehabilitation Standards. This means every house must, upon-completion of-the
-e13ab311tat10n:
• Meet the US Department of Housing and- Urban Development ("HUD") Section 8
Housing Quality .Standards including applicable Lead-Based Paint regulations 27 CFR
part 35, and Orange County's 1Vlinimum Housing Code. (These are so-called
"habitability standards" which set minimum standards for decent, safe and sanitary living
conditions.)
• Meet or exceed NCHFA Energy Efficiency Standards. (These are standards designed to
save energy and save you money on your monthly utility bills. They also result in
healthier and more comfortable homes.)
• Meet or exceed SRF "Written Rehabilitation Standards" (These standards are designed to
ensure greater durability)
• Retain- no "imminent threats" to the occupants of the home or to the home's "structural
int-egrity". (An example of an imminent threat to occupants as- well as to the home's
structural integrity is a crawlspace that is too damp. In time the dampness may provide
an invitation for the growth of mold and mildew as well as promote damage to the
framing from termites and fungi.)
These requirements are spelled out in full in Orange County's SFRl l Administrator's Manual
which you may view, at reasonable times, upon request, at the County's office or at the North
Carolina Housing Finance Agency's website www.nchfa.com under forms and documents
SFRl 1.
In addition to the above items that must be done to satisfy NCHFA requirements, the scope of
work may also include certain items meant to enhance or protect neighborhood and unit property
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values, and/or home modifications designed to enable frail or disabled household members to
function more independently.
It is anticipated that. each home rehabilitated with SFRll funds will, with reasonable
maintenance, be capable of lasting another 30 or 40 years.
Of course, contractors performing work funded under ~FRll are responsible for meeting all
-local requirements for permits and inspection. All- work done under the program -must be
performed to NC State_Residential Building Code standards. (This does not mean, however, that
the whole house must be brought up to Building- Code Standards.)
What atrot~t lead-based paint? Until it was discovered to be a health hazard, the metal, lead,.
was used for centuries to make house paints. Now we know that lead exposure is a serious
problem f-0r everyone .and especial-ly small children. Selling lead paint was outlawed inr 1978,
but many older buildings still contain lead paint and children are still being poisoned.
Under SFR1I, a lead hazard- evaluation must be performed on every home selected for
rehabilitation that was built before 1978. The specif c type of evaluation and the appropriate
lead hazard reduction work performed will depend on the total amount of Federal_-funds used to
rehabilitate the home, as per 24 CFR part 3 S.
It may be necessary for the household to relocate during the construction process for protection
against further lead poisoning. If relocation is required, reasonable and documented relocation
expenses will be covered by SFRI l assistance. The cost of relocation will be part of the loan
associated with- SFRI l and the average cost cannot exceed $1,000 per assisted household.
Who will do the work on the homes? Orange County is obligated under SFRI I-to ensure that
quality work is done at reasonable prices and that all work is contracted through fair, open and
competitive process. T-a meet those very difficult requirements, Orange County will invite bids
only from contractors who are part_of an "approved contractor's registry".
To be on the registry, contractors must (1) fill out an application form, listing several references
and recent jobs completed, and (2) receive the "conditional approval" of Orange County. Once a
contractor has been conditionally approved has successfully completed on job for Orange
County, his or her status is upgraded to "regular approval", meaning that they will be allowed to
bid on a regular rotation as long as they remain in good standing. (Homeowners who know of
quality r-ehabilitation contractors that are not on Orange County's Approved Contractors Registry
are welcome to invite them to apply.)
From three to five approved contractors will be invited to bid on each job, and the lowest
responsive and responsible bidder will be selected for the contract. "Responsive and
responsible" means the contractor (1) is deemed able to complete the work in a timely fashion,
and (2) that the bid is within 15% (in either direction) of Orange County's cost estimate. In the
event that more than five approved contractors wish to compete, licensed contractors will take
precedence. If required, lead based paint hazard reduction and/or abatement will be performed
by contractors who are trained and certified to per form such work.
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What are the steps- in the process, from application to completion? Now that you have the
information about how to qualify for the 2011 Single-Family Rehabilitation Program, what work
can be done, and who will do it, let's go through all the major steps-in the process:
1. Completing an Application form: Homeowners who wish to- apply for assistance must
do by November 1, 2011_ Apply by contacting Renee D. Holmes, Housing Programs
Coordinator, at (919) 245-2495. Proof of ownership and income will be required. Those
who have applied for housing assistance from. Orange County in the past will not
automati-tally be reconsidered. Anew application must be submitted.
2. Prelimina3-y Inspection: Orange_County Rehabilitation Specialist will visit the homes of
eligible households to determine the need and feasibility of the home for rehabilitation.
3. Screening of Applicants: Applications will be rated and ranked by Orange County based
an the priority system outlined on page 3 and the feasibility of rehabilitating the house.
Households to be offered assistance wiT1 be selected at the end of- each month until
November 30, 2011. Household income will be verified for program purposes only
(information will be kept. confidential) and ownership of property will be verified by
conducting a title search. From this review, the three (3) most qualified applicants will be
chosen according to the priority system described above. There will also be a list of two
(2) alternates.
4. Written Agreement: Upon verification of ownership resulting from the title search, a
written agreement betweerr the homeowner and Orange County will be executed by both
parties. This- agreement will certify that the- property is the principal residence of the
owner, that the post-rehab value of the property will not exceed 95% of the 203(b) limits
established by HUD and define the amount and- form of assistance being provided to the
homeowner by Orange County, the scope of work to be performed, the date of completion
and the rehabilitation-standards to be met.
5. Pre-rehab Inspections & Unit Evaluation: Orange County's Rehabilitation Specialist
will visit the home again for a more thorough inspection. All parts of the home must be
made accessible for inspection, including the attic-and crawlspace. The owner should report
any known problems such as electrical short circuits, blinking lights, rook leaks, etc. Each
unit will be evaluated for energy-saving opportunities such asair-sealing and duct-sealing
as well as for environmental concerns, such as lead based paint hazards and high levels of
radon.
6. Work Write-up: The Rehabilitation Specialist will. prepare complete and detailed work
specifications (known as the "work write-up"). A final cost estimate will also be prepared
by the Rehabilitation Specialist and held in confidence until bids are received from the
contractor.
7. Lead Testing: Orange County will arrange for a certified firm to inspect the home for
potential lead hazards. The owner will receive information covering the results of the tests
and any corrective actions that will be needed as part of the rehabilitation.
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8. Forma-l Agreement: After approval of the work write-up, the homeowner will-sign a
formal agreement that will explain and govern the rehabilitation process. The agreement
will-define the roles of the parties involved throughout the rehabilitation process.
9. Bidding: The work write-up and bid documents_will be mailed to three to five contractors
from the Approved=:Contractors_Registry who will be given two to-three weeks in which to
inspect the property and prepare a bid. A bid opening will be conducted by .Orange
County's Housing, Human Rights and Community Development office at a specified date
and time, will all bidders and homeowners invited to attend.
10. -Contractor Selection: Within 24 hours: of the bid opening, -after review of bid breakdowns
and construction schedules, the winning bidder will be selected. Ali- bidders and the
homeowners v~=ili be notified of (1) -the selection _of -the winning bid, (2) the amount _of the
winning bid; (3) the amount of Orange County's cost estimate, and (4) the specific reasons
for the selection, if other than the lowest bidder- was selected.
11. L-oan Closing and-Contract Execution: Loan documents will be prepared and executed
by the homeowner- and construction contract documents will be executed by the
homeowner and contractor with Orange County signing on as an interested third party.
12. Pre-Construction Conference: Apre-construction conference will be held at the selected
applicant's home.- At this time, the homeowner, contractor and- program representatives
will discuss the details of the work to be done. Starting and- ending dates will be fmalized,
along with any special arrangements such as weekend or evening work hours and
disposition of items to be removed from the home (such as old cabinets, etc.}. Within 24
hours of the pre-construction conference, Orange County will issue a "proceed order"
formally instructing the contractor to commence. by the agreed-upon date.
13. Construction: The contractor will be responsible for obtaining a building permit for the
project before beginning work. The permit must be posted at the house during the entire
peri-od of construction. Program staff will- closely monitor the contractor during the
construction period to make sure that the work is being done according to the work write-
up (which is made a part of the rehabilitation contract by reference) and in a timely fashion.
Local Code Enforcement Officials will inspect the work for compliance with NC State
Building Code. The homeowner will be responsible for working with the contractor
toward protecting personal property clearing work areas as much as practicable. If
applicable, the contractor will obtain a permit for lead hazard related activities.
14. Change Orders: All changes to the scope of work must be approved by the owner, the
contractor, a County representative and the Rehabilitation Specialist, and reduced to
writing as a contract amendment ("change order"). If the changes require an adjustment in
the loan amount, the change must be specified in the change order. Also, a modification
agreement stating these changes in the contract amount must be completed by Orange
County, and executed by the owner.
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1.5. Progress Payments: The contractor is entitled to request a maximum of one pa~°tial
payment during construction der $8,000 of contracted amount. When a payment is
requested, the Rehabilitation Specialist will inspect -the work within three days, list all
items deemed 00% complete, and calculate a payment based on 85% of the -total
contracted amount of those completed items. Payments will be -made within four- business
days of the inspection.
16. Close-out: When the contractor declares the work complete, program staff will thoroughly
inspect work. If deficiencies are observed, the contractor-will be required to correct them.
When the Rehabilitation Specialist and the homeowner are satisfied that the contract has
been fulfilled, each will sign off and, after-receipt of the contractor's final invoice and lien
releases, the final payment will be ordered. All material and workmanship will be
guaranteed by the contractor for aper-iod of one-year from the date of completion of the
work.
17. Post-Construction Conference: Following construction the contractor and the
Rehabilitation Specialist will sit down with the homeowner one last time. At this
conference the contractor will hand over all owner's manuals and warranties an equipment.
The -cor..tractor and Rehabilitation Specialist will go over operating and maintenance
requirements for the new equipment and appliances and discuss general maintenance of the
home with the homeowner. The homeowner will have the opportunity to ask -any finai-
questions about work.
18. Recordation and Assignment: ~1s_soon as possible after the contractor has been selected,
and prior to beginning work, Orange County staff and the homeowner will execute the
requir-ed promissory note deezi of trust. These documents are then recorded by the Orange
County staff. If, upon completion of all rehabilitation work, the contract price has changed
due- to the effect of change orders, Orange County staff will execute and record a loan
modification agreement reflecting the resulting increase in the original loan amour-_t. If the
amount of the loan is decreased due to a change order, then an Estoppel Agreement is
executed by NCHFA, reducing the amount of the lien.
19. The Warranty Period: It is extremely important that any problems with the work that
was performed be reported by the homeowner, to the Rehabilitation Specialist, as soon as
possible. All bona fide defects in materials and workmanship reported within one year of
completion of construction will be corrected free of charge.
What are the key dates? If after reading this document, you feel that you qualify for this
program and wish to apply, please keep the following dates in mind:
• Applications available to the public starting September 1, 2011.
• Applications must be turned in to Orange County by 5:00 PM on November 1, 201 1.
• Selection of units will be made monthly on September 30, October 31, and November
30, 2011.
• All rehabilitation work must be under construction by December 31, 2012.
• All rehabilitation work must be completed by June 30, 2014.
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I~ow do I request an application? Contact:
Renee D. Holmes, Housing Programs Coordinator
Orange County Housing, Human Rights and Community Development
30~ W. Tryon Street, P. O. Box 81-81
Hillsborough, NC 27278
Phone: (919) 245-2495
Or request-by mail at:
Orange County Housing, Human Rights and Community-Development Department
300 W. Tryon Street
P. O-. Box 8.181
Hillsborough, NC 27278
Is there a procedure for dealing with complaints, disputes and appeals?
Although the application process and rehabilitation guidelines are meant to be as fair as possible,
Orange County realizes that there is still a chance that some applicants or participants may feel
that they are not treated fairly. The following procedures_ are designed to provide an avenue for
resolution of complaints and appeals.
Durin tg he application process:
1_ If the applicant feels that his/her_ appi~cation was not fairly reviewed or rated and would
like-to appeal the decision made about it, he>she should contact Michael Talbert, Interim
Assistant County Manager at 91-9-245-2153 within five days of file initial decision and
voice their concern. If the applicant remains dissatisfied with the decision, the detailed
complaint should be put into writing.
2. A written appeal must be made- within 10 business days of the initial decision on-an
application.
3. Orange County will respond in writing to any complaints or appeals within_ 10 business
days of receiving written comments.
4. Should the applicant remain dissatisfied with the decision, a conference between the
applicant and the County will be .held.
During the rehabilitation process:
1. if the homeowner feels that construction is not being completed according to the contract,
he/she must inform the contractor and the Rehabilitation Specialist.
2. The Rehabilitation Specialist will inspect the work in question. If he finds that the work
is not being completed according to contract, the Rehabilitation Specialist will review the
contract with the contractor and ask the contractor to remedy the problem.
3. If the Rehabilitation Specialist finds that the work is being completed according to
contract, the complaint will be noted and the Rehabilitation Specialist and the
homeowner will discuss the concern and the reason for the Rehabilitation Specialist's
decision.
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4_ I€ the homeowner is dissatisfied a written appeal detailing the concerns must be
submitted within 10 business days for review by the County. Orange County will
respond in writing to any complaints or appeals within 10 business day of receiving
written .comments.
5. If the homeowners concerns -are not satisfied, a mediation conference between the
homeowner and the contractor may be convened by the Rehabilitation Specialist and
facilitated b; the County's Housing, Human Rights and Community Development
Director.
6. Should the mediation conference fail- to resolee the dispute, Orange County will render a
written final decision.
Final Appeal:
After following the above procedures, any applicant or homeowner wha remains dissatisfied
with Orange County's .final decision may appeal to Michael Handley, NCHFA, P.O. Box 28066,
Raleigh, NC 27611-8066, (9.19) 877-5700-.
Will the personal information provided remain confidential? Yes. All information_ in
applicant files will remain confidential. Access to the information will be provided only to
County employees and County employees who are directly involved in the program, the North
Carolina Housing Finance Agency, =she US Department of Housing and Urban Development
(HUD) and auditors.
What aboux conflicts of interest? No officer, employee or other public official of the County,
or member of the Governing Board, or entity contracting with the County, wvho exercises any
functions or responsibilities with r-espect to -the SFR pr-0gram shall have any interest, direct or
indirect, iri any contract or subcontract for- work to be performed with program funding, either
for themselves or those with whom they have family business ties, during their tenure or for on
year thereafter. Relatives of County employees, Governing Board Members and others- closely
identified with the County, may be approved for rehabilitation assistance only upon public
disclosure before the Governing Board and written permission from NCHFA.
What about favoritism? All activities under SFR2011, including rating and ranking
applications, inviting bids, selecting contractors and resolving complains, will be conducted in a
fair, open and non-discriminatory manner, entirely without regard to race, creed; sex, color or
national origin.
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Who can I contact about the SFR2011 program? Any questions regarding any part of this
application or program should be address to:
Renee Holmes
Orange County
P.O. Box 8181
Hil-lsborough, NC 27278
(919) 245-2495
David Saconn
Orange County
P.O. Box 8181
Hillsborough, NC 27278
(919) 245-2490
James Hutcherson
Orange County
F.O. Box-8181
Chapel Hill, NC 27516
(919) 969-3015
These contacts will do their utmost to answer questions and inquires in the most efficient and
correct manner possible.
This Assistance Policy is adopted this day of
2011.
Board Chair.
Attest
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Orange-County ~ H
2011 Single-Family Rehabilitation (SFR) Program
PROCUREMENT POLICY
To the maximum extent practical, Orange County promotes a fair, open and competitive
procurement process as required under the North- Carolina Housing Finance Agency's Single-
Family Rehabilitation (SFR)- Program. Bids are invited from Contractors- who are part of the
County's approved contractor registry. (To be on the registry, a contractor must complete an
application, have their recent work inspected, reviewed and approved by the Rehabilitation
Specialist and submit proof of insurance at the appropriate levels required by the County.)
1.Thre e to six eligible contractors on the- County's approved contractor registry shall be invited
to bid on each job and the lowest responsive and responsible bidder shall be selected for the
contract. "Responsive and responsible" means (a) the contractor is deemed able to complete
the- work in a timely fashion, (b) the bid is within 15%, in either direction, of the County's
cost estimate, and (c) there is no conflict of interest (real or apparent).
2.Althoug h bid packages may be bundled- for multiple job sites, the bids for multiple job sites
shall be considered separate and apart when awarded and shall be awarded to the lowest
responsive and responsible bidder(s) for each job site.
3.B id packages shall consist of an invitation to bid, work write up(s) and Non-Collusive
Affidavit form (s) for each job.
4.B ids must include acost-per-item breakdown with line item totals equaling the submitted bid
price. Discrepancies must be reconciled prior to a contract being awarded.
S.Any change to the original scope of work_must be reduced to writing in the form of a change
order to be agreed upon and signed by all parties to the original contract. The change order
must also detail any changes to the original contract price.
6.No work may begin prior to a contract being awarded and a written order to proceed
provided to the contractor. I-n addition, apre-construction conference and "walk thru" shall
be held at the work site prior to commencement of repair work.
7.Or ange County reserves the right to reject any or all bids at any time during the procurement
process.
8.I n the event of a true emergency situation, the County reserves the right to waive normal
procurement procedures in favor of more expedient methods, which may include seeking
telephone quotes, faxed bids and the like. Should -such methods ever become necessary the
transaction will be fully documented.
9.A11 sealed bids will be opened publicly at a time and place to be announced in the bid
invitation. All bidders are welcome to attend.
This Procurement Policy is adopted this the day of 2011.
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Orange County
2411 Single-Family Rehabilitation (SFR) Program
DISBURSEMENT POLICY
1.All repair work must be inspected by (a) the .County's Rehabilitation Specialist, (b) a
Building Code Officer if necessary, and (c) the homeowner prior to any payments to
contractors. If all work is deemed satisfactory and all other factors and written agreements
are in order, payment shall bye issued upon presentation of an original invoice from the
contractor. Contractor should allow 15 business days for processing of tiie invoice for
payment.
2.I f any of the work is deemed unsatisfactory, it must be corrected prior to authorization of
payment. If the contractor fails to correct the work to the satisfaction of the County's
Rehabilitation Specialist, payment may be withheld until such time the work is satisfactory.
(Contractors may follow the County's Single Family Rehabilitation Program Assistance
Policy if a dispute occurs; however, contractors shall abide by the fmal decision as stated in
the policy).
3.Or ange County assures, through this policy, that adequate funds shall. be available to pay the
contractor for satisfactory work.
4.A11 contractors, sub-contractors and suppliers must sign a lien waiver prior to fmal
disbursement of funds.
This Disbursement Policy is adopted this the day of 2011.