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HomeMy WebLinkAboutAgenda - 12-13-2011 - 5gORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: December 13, 2011 Action Agenda Item No. SUBJECT• Housing Rehabilitation Program - N.C. Housing Finance Agency DEPARTMENT: Housing, Human Rights, and PUBLIC HEARING: (YIN) No Community Development ATTACHMENT(S): Revised Assistance Policy INFORMATION CONTACT: Revised Procurement Policy Tara L. Fikes, 919-245-2490 8/23/11 Adopted Disbursement Policy PURPOSE: To adopt a revised Assistance Policy and a revised Procurement Policy 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, a Procurement Policy that details the bid solicitation process is also required. These policies were drafted and approved by the Board of County Commissioners (BOCC) on August 23, 2011. However, after submission to NCHFA, some revisions were required by the agency. Those revisions are indicated by underline in the attached policies and the revised policies must be approved by the BOCC. 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 and authorize the Chair to sign the Revised Assistance Policy and the Revised Procurement Policy for the 2011 Single Family Housing Rehabilitation Program funded by the N.C. Housing Finance Agency. 2 Orange County Assistance Policy 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 Program (SFRlI). 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 SFR11, 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 SFR11 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 form of assistance for construction-related costs (hard costs) will be~rovided as no interest, no payment loans which are forgiven at the rate of $3,000 per year. Non-construction-related costs (soft costs} will be provided in the form of a Trant. Eligibility. There are several major requirements to be eligible for SFR11 assistance: The housing unit to be rehabilitated with SFR funds must be located in Orange 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: 3 • The property must require at least $5,000 of improvements in order to meet SFR Rehabilitation Standards. • The property must be free of environmental hazards and other 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. T'he County's Rehabilitation Specialist will determine whether there are environmental hazards/nuisances present on the site and if they can be removed through rehabilitation. • Properties cannot be located in aright-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 endangered by mudslides, landslides or other natural or environmental hazards. T'he Rehabilitation Specialist will work with the homeowner to make this determination, if needed. • Manufactured housing is not eligible for assistance • The property 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.) • The property cannot have been repaired or rehabilitated with public funding of $5,000 or more within the past 10 years. 2011 Income Limits for Orange County's Single-Family Rehabilitation Program Number In = 30% of ~ ~ t50a/.of Medan ~k~~ &Oela ol•~"jz ~ ~~; ~ 8Q%o ofd Household 'Medianf~~' ",Very Lowy ~~ ~`~ 1Viediat~~~~`' 141edta~ (`Low` " s~'' income `•.:Income" ,.- .. _ ~ , ~ ,~ Incoibc:~~,. ~ ~i IbCO * e" ~~ 1 $14,250 $23,750 $28,500 $38,000 2 $16,330 $27,150 $32,580 $43,400 3 $18,350 $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 $39,350 $47,220 $62,950 7 $25,250 $42,050 $50,460 $67,300 8 $26,900 $44,750 $53,700 $71,650 2 4 Rating and ranking of applications. There are many more SFR-eligible households (with eligible houses) than can be assisted with the available funds. Therefore, Orange County has devised the following priority system to rank eligible applicants, determine which of them will be selected for assistance and in what order. Under this system applicants will receive points for falling into certain categories. Applications will be ranked according to which receive the most points. Priority Ranking System for Orange County's 2011 Single-Family Kehabilitation Yro~ram Special Needs (for.tiefinirions; see_below)~ , ,.,_~~' , w'~~~"~ ~. ~ -~':~ P Elderly Head of Household (62 or older) 4 Disabled Head of Household 4 Disabled or Elderly Household Member (not Head of Household) 2 ~ncoiiie (See Income Table~above)a .~_ w:~ ~.. , ~ ;~f.~`v ; ~<t, _ ~; ,Points ,'. £ fi; ; Less than 30% of County Median Income 8 30% to 50% of County Median Income 5 50% to 80% of County Median Income 1 In the case of equivalent rankings based on the 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 62 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 family 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. Forms and terms of assistance under SFR11.= The North Carolina Housing Finance A.~ency wil~rovide assistance to those households selected for the proiect with a 0% interest forgivable loan covering the hard casts associated with the rehabilitation ofthe home as long as tl~e owner resides in the home The term of the loan is dependent upon the loan amount and the number of years it takes to brim the balance of the laan to $0 when far~iven at $3.000 per year. Far example if the amount of the loan is $31 4~2 then the term is 11 years ($30.000 forgiven over the first 10 years and S 1 452 forgiven at the end of the l l`" year). The form of SFR assistance is a loan for the hard costs and a grant for the soft costs. These will be tvvo separate documents or sets of documents• Promisson~ Note and Deed of Trust for the loan portion covering hard costs only and. a Grant Agreement for the grant portion, covering; allowed soft costs per URP11 Program Guidelines. Granted A~encv soft costs cannot exceed $x,000 for homes built after 1978 and. ~6 000 for homes built before 1.978. As long_as the borrower lives in the home no payments an the loan will be required. Lf the recipient prefers the lawn can be paid ofF at any time either in installments or as a lump sum payment Furthermore under certain circumstancesNC.HF;~ may allow assumption or refinancing of the loan. Should an heir inherit the property and choose to live in the house as their permanent residence they may assume the laan without being income eligible. Hawever, the lien remains an the property A buyer who may wish to buy the prapertv to live in ~.nav assume the loan so long as they can document that they are income-eli ig'ble (< 80% A1V11). Default can occur if the properh~ is sold or transferred to another person and/or if the borro~}per fails to use the home as a principal residence without prior written approval of the North Garoli.n.a Housing Finance A.Qency. 0 Telttr~tie~-~tl~°~z~T~e-~~ :~~ ~'~ ~ Tai s ~: Rt e2 nnn ..o .... .,,., ., r.," ~'v . b 0 • ~ ~ c c s, , a . 7 b ,b, 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 rehabilitation: 6 • 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 Minimum 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 integrity". (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 SFR11 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:r.2cllfa.com under forms and documents SFRI 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 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 SFR11 funds will, with reasonable maintenance, be capable of lasting another 30 or 40 years. Of course, contractors performing work funded under SFR11 are responsible for meeting all local requirements for permits and inspections. 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 about 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 for everyone and especially small children. Selling lead paint was outlawed in 1978, but many older buildings still contain lead paint and children are still being poisoned. Under SFR11, a lead hazard evaluation must be performed on every home selected for rehabilitation that was built before 1978. The specific 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 35. 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 7 expenses will be covered by SFR11 assistance. The cost of relocation will be part of the loan associated with SFR11 and the average cost cannot exceed $1,000 per assisted household. Who will do the work on the homes? Orange County is obligated under SFR11 to ensure that quality work is done at reasonable prices and that all work is contracted through fair, open and competitive process. To 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 rehabilitation 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. 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 automatically be reconsidered. Anew application must be submitted. 2. Preliminary 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 on the priority system outlined on page 3 and the feasibility of rehabilitating the house. Households to be offered assistance will 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. Orange Count will then submit to NCIIFA a SFRI 1 Loan Application and. Reservation Re~C uest fo1-~n for each potential borro`ver for approval of SFR furtdin~. Applicants not selected for SFR assistance will be notified in writing. 6 8 4. Written Agreement: A ~r~ritten agreement the Homeowner Agreement. between the homeowner and Orange County will be executed as part of the Loan Application. procedure arld formally commits funds to tlae dtivellina units. ' „^~ _;~;r..,:^•~ ^f ~. r'^ ~ +~~ ~ •~~~ ~° ° ^~~*°a ~~- ~^*~ r~r*=°°. 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 as air-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. b 9:#3.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. ~9. Contractor Selection: Within 24 hours of the bid opening, after review of bid breakdowns and construction schedules, the winning bidder will be selected. All bidders and the homeowners will 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. -1-1:10. Loan Closing and Contract Execution: Loan documents will be prepared by I~~CEiF4 and executed by the homeotivner. By law. homeowner's have the right to hire legal representation of their choosing at loan closin#<Y. If homeowner does not have ``representation" at the closing the borro«~er must sign a. NCHFA "Unrepresented. 7 9 Borro«,~er Affidavit". Construction contract documents will be executed by the homeowner and contractor with Dunham County signing on as an interested third party. ~bbb -1-11. 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 finalized, 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. X1.2. 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 period 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. =1-x:13. 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. The A~ency will draw up an estopoel agreement at the time of closeout of the unit to modifi~ the loan amount when there is a need for a chance order involving a change in costa b C ~ . x,:14. Progress Payments: The contractor is entitled to request a maximum of one partial payment during construction per $8,000 of contracted amount. When a payment is requested, the Rehabilitation Specialist will inspect the work within three days, list all items deemed 100% 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. -1-f~:15. Closeout: 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 10 will be guaranteed by the contractor for a period of one-year from the date of completion of the work. ~1-=; ~ 1 G. 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 on equipment. The contractor 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 final questions about work. ,I-~17. ~eeaie>Ft-Final loan amount determination '~, If, upon. completion of all rehabilitation work the contract price has chan;;ed due to the effect of chance orders NCHFA will execute and record the appropriate documents to reflect the resulting increase or decrease in the original loan amount. The loan will remain the pro~ertS~ of NCHFA with original documents retnainin~ there for storage and "servicing". , .~a~.~~~~ ~~,~~.t~..,~,..a~ .,. ~,....,...,~....~...,.. ,._..._, ..._ _~_._.--_. r---- ----_~ ------~-- ---- -- +n~'ic-cx~i-cc~vi cncrl~g~Qrccri, Gnran~c-~ E31~~}cj~-Stc'~~y}ll e~E~6FFte ,,•i ~ ,•,-,~1 t~,~„ + .7 1, AT(`~Li~T~' A a....;..~ +t.o ., :.,+ .,f+l~o t;a~~. -1-$:l ~3. 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, 2011. • 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, 2013?. • All rehabilitation work must be completed by June 30, 2014. How do I request an application? Contact: Renee D. Holmes, Housing Programs Coordinator Orange County Housing, Human Rights and Community Development 300 W. Tryon Street, P.O .Box 8181 Hillsborough, NC 27278 Phone: (919) 245-2495 11 Or request by mail at: Orange County Housing, Human Rights and Community Development Department 300 W. Tryon Street P. O. Box 8181 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 application 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 919-245-2153 within five days of the 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. 4. If 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 by the County's Housing, Human Rights and Community Development Director. 10 12 6. Should the mediation conference fail to resolve the dispute, Orange County will render a written final decision. Final Appeal: After following the above procedures, any applicant or homeowner who remains dissatisfied with Orange County's final decision may appeal to Michael Handley, NCHFA, P.O. Box 28066, Raleigh, NC 27611-8066, (919) 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, the US Department of Housing and Urban Development (HUD) and auditors. What about 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, who exercises any functions or responsibilities with respect to the SFR program shall have any interest, direct or indirect, in 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. 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 Hillsborough, NC 27278 (919)245-2495 David Saconn Orange County P.O. Box 8181 Hillsborough, NC 27278 (919) 245-2490 James Hutcherson Orange County P.O. BOX 8181 Chapel Hill, NC 27516 (919) 969-3016 These contacts will do their utmost to answer questions and inquires in the most efficient and correct manner possible. 11 13 This Assistance Policy is adopted this _13th_day of-December ~ 2011. Attest Board Chair 12 14 Orange County 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. Three 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. Although 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. Bid packages shall consist of an invitation to bid, work write up(s) and Non-Collusive Affidavit form (s) for each job. 4. Bids 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. 5. 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 and tvvo representatives of Orange County. 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. In addition, apre-construction conference and "walk thru" shall be held at the work site prior to commencement of repair work. 7. Orange County reserves the right to reject any or all bids at any time during the procurement process. 8. In 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. All 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 _13th_ day of-December 2011. 15 Orange County 2011 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 be issued upon presentation of an original invoice from the contractor. Contractor should allow 15 business days for processing of the invoice for payment. 2. If 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 final decision as stated in the policy). 3. Orange County assures, through this policy, that adequate funds shall be available to pay the contractor for satisfactory work. 4. All contractors, sub-contractors and suppliers must sign a lien waiver prior to final disbursement of funds. This Disbursement Policy is adopted this the _23rd_ day of -August- 2011.