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HomeMy WebLinkAboutAgenda 09-03-19 Item 8-m - Adoption of Policies Related to North Carolina Housing Finance Agency (NCHFA) – 2019 Urgent Repair Program (URP19) Grant Award 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: September 3, 2019 Action Agenda Item No. 8-m SUBJECT: Adoption of Policies Related to North Carolina Housing Finance Agency (NCHFA) — 2019 Urgent Repair Program (URP19) Grant Award DEPARTMENT: Housing and Community Development ATTACHMENT(S): INFORMATION CONTACT: 1) NCHFA FY19 Grant Award Letter Bonnie Hammersley, County Manager, 2) Orange County Proposed URP2019 (919) 245-2300 Assistance Policy 3) Orange County Revised Procurement and Disbursement Policy PURPOSE: To adopt and authorize the Chair to sign the Assistance and Revised Procurement and Disbursement Policies for the NCHFA 2019 Urgent Repair Program (URP19) Grant Award and authorize the County Manager and Housing and Community Development (H&CD) Department staff to make any required changes as requested by the North Carolina Housing Finance Agency (NCHFA). BACKGROUND: On April 11, 2019, Orange County received notice of a grant award for the 2019 Urgent Repair Program (URP19). The award of $80,000, with a local match by the County of $40,000, will assist twelve (12) low income owner-occupied households with urgent repairs. The NCHFA Grant funds will provide a maximum of $10,000 per unit for repairs. Eligible households are those with one or more full-time household members with special needs (i.e., elderly, disabled, Veteran and/or a household with a child 6 or under with an elevated blood- lead level). The total household income for eligible applicants cannot exceed 50% of the County's Area Median Income. H&CD staff will utilize its current Urgent Repair Applicant List, as well as seek other potential applicant households through newspaper advertisements, listing information on the County's Website and posting notices at senior and community centers throughout Orange County. The NCHFA Grant Award requires that, by September 6, 2019, jurisdictions receiving URP19 grant funds adopt policies for Assistance and Procurement and Disbursement for their programs. The policies outline the details for applicant eligibility, approved repair categories, bid solicitation and payment processes for the program. These policies are slightly different from the policies for the County funded urgent and comprehensive housing rehabilitation activities. However, if County funds are used as leverage for the NCHFA Grant funds, then the proposed policies would apply rather than the local County policies. 2 FINANCIAL IMPACT: No negative financial impact is anticipated by the approving of these policies. The NCHFA Urgent Repair Program Grant funds leverages the County FY19-20 funds and allows more homes to be addressed under the Urgent Repair Program. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goals are applicable to this item: • GOAL: FOSTER A COMMUNITY CULTURE THAT REJECTS OPPRESSION AND INEQUITY The fair treatment and meaningful involvement of all people regardless of race or color; religious or philosophical beliefs; sex, gender or sexual orientation; national origin or ethnic background; age; military service; disability; and familial, residential or economic status. • GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY The creation and preservation of infrastructure, policies, programs and funding necessary for residents to provide shelter, food, clothing and medical care for themselves and their dependents. • GOAL: CREATE A SAFE COMMUNITY The reduction of risks from vehicle/traffic accidents, childhood and senior injuries, gang activity, substance abuse and domestic violence. ENVIRONMENTAL IMPACT: The following Orange County Environmental Responsibility Goal impacts are applicable to this item: • ENERGY EFFICIENCY AND WASTE REDUCTION Initiate policies and programs that: 1) conserve energy; 2) reduce resource consumption; 3) increase the use of recycled and renewable resources; and 4) minimize waste stream impacts on the environment. • RESULTANT IMPACT ON NATURAL RESOURCES AND AIR QUALITY Assess and where possible mitigate adverse impacts created to the natural resources of the site and adjoining area. Minimize production of greenhouse gases. The H&CD staff will undertake the above as it relates to any work write-ups developed and repairs conducted to the extent feasible, given the nature of repairs completed under NCHFA's 2019 Urgent Repair Program, RECOMMENDATION(S): The Manager recommends that the Board adopt and authorize the Chair to sign the required policies and authorize the County Manager and Housing and Community Development Department staff to make any required changes as requested by the North Carolina Housing Finance Authority (NCHFA). 3 ► : ► ATTACHMENT 1 April 11, 2019 A self-supporting Ms. Bonnie Hammersley, County Manager public agency Orange County PO Box 8181 Scott Farmer Hillsborough,NC 27278 Executive Director Dear Ms. Hammersley: PO Box 28066 I am pleased to inform you that Orange County has been conditionally approved to Raleigh,NC receive an amount not to exceed $80,000 under the 2019 cycle of the Urgent Repair 27611-8066 Program (URP 19). The URP 19 Program attracted applications from a broad variety of housing providers 3508 Bush Street across the state. Fifty-eight applications were received, with funding requests totaling Raleigh.NC $6.74 million. Our total commitment to URP19 of$4.5 million funded thirty-eight 27609-7509 Projects this year(66% of all applicants) and will provide urgently needed repairs or modifications to the homes of 631 households in sixty-one counties. Success in this Tn..919-877-5700 competition reflects your organization's commitment and capacity to respond to the FAN.919-877-5701 need for urgent repair assistance in your service area. www.nchfa.com A one-day Implementation Workshop is scheduled for June 11, 2019 in Raleigh. Detailed workshop information will be emailed to you and the person identified in your application as the Program contact. An URP 19 Funding Agreement will be sent to you after you submit some required post-approval documentation and key staff have attended the workshop. Please do not begin work on your project until a Funding Agreement has been forwarded to you and properly executed. On behalf of the Agency, I congratulate you on your successful application. If you have any questions regarding this award, please contact Chuck Dopler at (919) 981- 5008. Sincerely, Sonia B. Joyner Director of Home Ownership Programs cc: Sherrill Hampton, Director of Housing and Community Development I 4 ATTACHMENT 2 Orange County Assistance Policy For the 2019 Cycle of the NCHFA-Funded Urgent Repair Program What is the Urgent Repair Program? Orange County has been awarded $80,000 by the North Carolina Housing Finance Agency ("NCHFA") under the 2019 cycle of the Urgent Repair Program ("URP19"). This program provides funds to assist very low and low-income households with special needs in addressing housing conditions which pose imminent threats to their life and/or safety or to provide accessibility modifications and other repairs necessary to prevent displacement of very low and low-income homeowners with special needs such as the frail, elderly and persons with disabilities. At least twelve (12) households will be assisted under Orange County's URP19 Program. This Assistance Policy describes who is eligible to apply for assistance under URP19, how applications for assistance will be rated and ranked, what the form of assistance is and how the repair/modification process will be managed. The County has tried to design this URP19 project to be fair, open and consistent with the County's approved application for funding and with NCHFA's URP Program Guidelines. The funds provided by NCHFA come from the North Carolina Housing Trust Fund. Additional funds for construction costs are provided by Orange County in the amount of$40,000. Eligibility Requirements: To be eligible for assistance under URP19 applicants must meet the following requirements: 1) must reside within Orange County and own and occupy the home in need of repair; 2) must have a household income which does not exceed 50% of the County median income for the household size (see income limits below); 3) must have a special need (i.e. be 62 years old or older, handicapped or disabled, a single parent with a dependent child living at home, a Veteran, a large family with five (5) or more household members or a household with a child below the age of six (6) with an elevated blood lead level (between 10g/dl and 20g/dl)); 4) must have urgent repair needs which cannot be met through other state or federally- funded housing assistance programs. URP19 Income Limits* for Orange County Number in 30%of Median 50%of Median Household (very-low income) (low income) 1 $17,850 $29,700 2 $20,400 $33,950 3 $22,950 $38,200 4 $25,450 $42,400 5 $27,500 $45,800 6 $29,550 $49,200 7 $31,600 $52,600 8 $33,600 $56,000 5 *Income limits are subject to change based on annually published HUD HOME Limits and will be updated each year. This update will not require a re-approval by the governing authority. What Outreach Efforts will be Undertaken to Announce the Urgent Repair Program? Orange County will advertise or publish an article about the Urgent Repair Program in the local English- speaking and Spanish-speaking newspapers serving the County (The News of Orange and La Noticia) and provide printed information about the program at the Passmore and Seymour Senior Centers; Cedar Grove, Rogers Road and the Efland-Cheeks Community Centers; Orange County Home Preservation Coalition; Orange County Affordable Housing Coalition; Carrboro Town Hall, Chapel Hill Town Hall, Orange County DSS Office and on the County's website. Selection of Applicants: The 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 of special need and income. The applications will be ranked according to which receive the most points. Priority Ranking System for Orange County's URP19 Special Needs (for definitions, see below) Points Disabled, Elderly or Veteran Head of Household (62 or older) 4 Disabled, Elderly or Veteran Household Member (not Head of Household) 3 Single-Parent Household (with one or more minor children in the home) 3 Emergency (may submit without regard to application deadlines) 3 Large Family (5 or more permanent family members) 2 Elevated Blood Lead Level Child 2 Income (See Income Table above) Points 30% or below County Area Median Income 10 31%to 50% of County Area Median Income 5 Under NCHFA Program Guidelines, a minimum of 50% of households assisted must have incomes which are 30% or less of the area median income for the household size, and no household with an income exceeding 50% of the area median income will be eligible. This guideline will be adhered to strictly and will be the primary factor in the selection of those households to be assisted under URP19. Recipients of assistance under the URP19 will be chosen by the above criteria without regard to race, color, religion, national origin, sex, familial status and disability. Note that in the likely case of applicants receiving identical scores, the application with the earlier submission date will be considered first. The Definitions of Special Needs Populations Under URP19 are: • Elderly: An individual age 62 or older. • Emergency: A situation in which a household member has an immediate threat of being evicted or removed from a home due to health or safety issues within a time frame that the program can complete a repair to stop eviction or removal. These applications will be received at any time during the funding cycle and evaluated on the ability of the program to complete Page 2 6 the work in a timely manner that meets the goal of assisting homeowners to remain in their home. • Disabled: A person who has a physical, mental or developmental disability that greatly limits one or more major life activities, has a record of such impairment, or is regarded as having such an impairment. • Large Family: A large family household is composed of five or more individuals; at least four are immediate family members. • 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 three (3) months prior to the submission of the family's application. • Single-Parent Household: A household in which one and only one adult resides with one or more dependent children. • Veteran: A person who served in the active military, naval or air service, and who was discharged or released therefrom under conditions other than dishonorable. • Child with elevated blood lead level: a child younger than the age of six (6) with an elevated blood lead level between 10µ g/dl and 20µg/dl. Client Referral and Support Services: Homeowners assisted through the Urgent Repair Program (URP 2019) may also need other services. When the Urgent Repair Program staff meets the homeowner during the intake process, if needed, they will discuss the resources and programs available in the County and provide pamphlets and a list of the agencies with contact information. With the Homeowner's permission, any referrals to other agencies will be included in the Housing Case File. What is the Form of Assistance Under URP19? The County will provide assistance in the form of a forgiveable loan to homeowners whose homes are selected for repair/modification. The unsecured, interest-free loan, will be forgiven at a rate of $2,000 per year until the principal balance is reduced to zero. As part of the application process, all applicants will be provided detailed information about these loans, and will be required to attest to receiving this information. What is the Amount of the Loan? The amount of the loan will depend on the scope of work necessary to address the identified imminent threats to life and/or safety and that will be determined by the County's Rehabilitation Specialist. There is no minimum to the amount of the loan; however, the maximum life-time limit according to the guidelines of NCHFA's URP19 Program is $10,000. What are the Eligible Kinds of Repairs? Only repairs that address imminent threats to the life and/or safety of occupants of the dwelling unit or accessibility modifications will be performed Page 3 7 under the County's URP. Please understand that all deficiencies in a home will likely not be able to be repaired with the available funds. All work that is completed under URP19 must meet or exceed the NC Residential Building Code. Who will Conduct the Work on the Homes? The County is obligated under URP19 to ensure that quality work is done at reasonable prices and that all work is contracted through a fair, open and competitive process. To meet these requirements, the County will invite bids only from Contractors who are part of an "approved Contractors' registry". Please request a copy of the County's Procurement and Disbursement Policy for further information. (Homeowners who know of quality Rehabilitation Contractors that are not on the County's Approved Contractors Registry are welcome to invite them to apply and interested contractors should contact David Saconn, Rehabilitation Specialist.) A minimum of three (3) approved contractors will be invited to bid on each job and the most responsive and responsible low bidder will be selected for the contract. "Responsive and responsible" is described in the Procurement and Disbursement Policy. What are the Steps in the Process, from Application to Completion? Now that you have the information about how to qualify for the Orange County's URP19 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: Applications are available on the Orange County Website or at other locations as described in Section on Outreach Efforts above or by contacting Diane Beecham, Community Development Specialist at 919-245-4358 or dbeecham@orangecountync.gov. Proof of ownership, occupancy and income will be required. Orange County will accept applications throughout the grant period, based on the availability of funds. In addition, the County maintains a Waiting List for its local Urgent Repair Program and applicants who qualify under the County's local program may be considered for NCHFA's FY19 Urgent Repair Program if they meet the program requirements. 2. Preliminary Inspection: The County's Rehabilitation Specialist will visit the homes of all applicants to determine the need and feasibility of repairs/modifications. The Rehabilitation Specialist will also make a second visit to the home in order to do a more thorough inspection. See Item 5 below. 3. Screening of Applicants: Orange County will accept applications throughout the program grant period based on the availability of funds. Eligible households with emergency situations will be given priority over other applicants. After advertising for a 15-day period, the first rating and ranking of applicants will take place on October 14, 2019. The 2nd 15-day advertising period will be scheduled for January 2020. However, if the first advertisement and number of persons coming from the County's Local Urgent Repair Applicant List yields at least twelve (12) eligible applicants and units to be addressed, no further advertisement will occur. Page 4 8 All rehabilitation work must be under contract by October 15, 2020. In addition, all rehabilitation work must be completed by December 31, 2020. Prior to entering into a contract with the County, the income, property ownership and property tax payment status of households to be assisted will be verified. Applicants may contact Diane Beecham, Community Development Specialist, at 919-245-4358 or dbeecham@orangecountync.gov to confirm the disposition of their application. 4. Applicant Briefings: Approved applicants will be provided detailed information on assistance, program repair/modification standards and the contracting procedures associated with their project at this informational briefing. S. Development of the Work Write-Up: The County's Rehabilitation Specialists will visit the home again for a more thorough inspection. All parts of the home must be made accessible for this inspection, including the attic and crawlspace, if any. The homeowner should report any known problems such as electrical short circuits, blinking lights, roof leaks, etc. The Rehabilitation Specialist will prepare a complete and detailed set of work specifications ("work write-up"). A final, confidential cost estimate will also be prepared by the Rehabilitation Specialist to be used to evaluate the submitted bids. If the needed repairs require that household furniture and other goods be stored, the Orange County URP19 Program may provide an onsite storage pod. However, the contractor will only be required to move furniture to the storage pod. The moving of any other household goods into the onsite storage will be the responsibility of the homeowner. 6. Formal Agreement: After the review and approval of the work write-up, the homeowner will sign a formal agreement that will explain and govern the repair/modification process and an explanation of the Promissory Note, which is considered a forgivable loan. This agreement will define the roles of the parties involved throughout the process. 7. Bidding: The work write-up and bid documents will be sent to a minimum of three (3) contractors on the Approved Contractors' Registry who will be given a minimum of one (1) week in which to inspect the property and prepare bid proposals. Note that the inspection of the property by the contractors is mandatory. The names of the invited contractors will be supplied to the homeowner. Each will need access to those areas of the house in which work is to be performed in order to prepare a bid. A bid opening will be conducted at the Orange County Department of Housing and Community Development at a specified date and time, with all bidders and the homeowner invited to attend. 8. Contractor Selection: Within 48 hours of the bid opening and after review of bid breakdowns and timing factors, the winning bidder will be selected. All bidders and the homeowner will be notified of (1) the selection, (2) the amount, (3) any support or contingency costs that will be included in the loan amount and (4) if other than the lowest responsive and responsible bidder is selected, the specific reasons for the selection. 9. Execution of Loan and Contract Documents: The loan will be executed, as well as the repair/modification contract prior to work beginning on the project. This contract will be Page 5 9 between the contractor and homeowner, with Orange County as an interested third party. The cost of the actual work and project-related support costs up to the maximum amount of $1,000 will be included in the loan document. 10. Pre-Construction Conference: A pre-construction meeting will be held immediately following the execution of loan and contract documents unless due to scheduling conflicts, prior arrangements have been made with the homeowner and contractor for another date and time. The meeting will be held at the offices of Orange County Housing and Community Development Department at 300 West Tryon Street, 3rd Floor of the Richard Whitted Building, Hillsborough, NC. At this time, the homeowner, contractor and applicable County program representatives will be present and discuss the details of the work to be done. Starting and ending dates will be agreed upon, along with any special arrangements such as weekend or evening work hours, storage of household furniture, if applicable and the disposition of items to be removed from the home (such as old plumbing, etc.). If the contract has been executed, the County will issue a "Notice to Proceed Order" formally instructing the contractor to commence by the agreed upon date and time. 11. Construction: The contractor will be responsible for obtaining any required building permits 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. County Code Enforcement Officers, as applicable, will inspect new work for compliance with the State Building Code as required by the guidelines of URP19. The homeowner will be responsible for working with the contractor toward protecting personal property by clearing work areas as much as practicable. 12. Change Orders: All changes to the scope of work must be reduced to writing as a contract amendment ("change order") and approved by all parties to the contract: the homeowner, the contractor and two representatives of Orange County. If the changes require an increase in the loan amount, a Loan Modification stating these changes in the contract amount must be completed by the County and executed by the homeowner. If the changes result in a decrease in the loan amount, an estoppel informing the homeowner of these changes in the contract amount will be completed by the County and conveyed to the Homeowner. 13. Payments to the Contractor: The Contractor will be paid following inspection of and satisfactory completion of all items on the work write-up and change orders, if any, as outlined in the County's Procurement and Disbursement Policy. All requests for payment by the contractor must be accompanied by an invoice detailing the items completed. 14. Post-Construction Meeting: Following construction, the contractor and the Rehabilitation Specialist will sit down with the homeowner, again. At this meeting, 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 any new equipment installed and discuss general maintenance of the home with the homeowner. The homeowner will have the opportunity to ask any final questions about the work and the loan. Page 6 10 15. Closeout: Once each item outlined in the associated work write-up has been satisfied, the job is fully completed and the homeowner has signed a Certificate of Satisfaction, the job will be closed. What are Orange County's Key Program 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: • First advertisement of Orange County URP19 and applications available to the public starting September 23, 2019. • First deadline for applications to be returned to Orange County is October 9, 2019 • First rating and ranking of applications will take place on October 14, 2019. • 2nd advertisement period begins January 13, 2020, if needed. • Second deadline for applications to be returned to Orange County is January 31, 2020, if needed. • Second rating and ranking of applications will take place on February 7, 2020, if needed. • All rehabilitation work must be under contract by October 15, 2020. • All rehabilitation work must be completed by December 31, 2020. How Do I Request an Application? Contact: Diane Beecham, Community Development Specialist Orange County Department of Housing and Community Development P.O. Box 8181 300 W.Tryon Street Hillsborough, NC 27278 (919) 245-4358 dbeecham@orangecountync.gov Interested persons may also pick up an application at the Orange County Department of Social Services, Orange County Health Department, Orange County Department of Aging, Chapel Hill Town Hall, Carrboro Town Hall, Rogers Road Community Center, Cedar Grove Community Center and the Efland-Cheeks Community Center. A copy of the application is also available on the County's Website. Is There a Procedure for Dealing with Complaints, Disputes and Appeals? Although the application process and repair/modification 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 were not treated fairly or have complaints. The following procedures are designed to provide an avenue for resolution of complaints and appeals. During the application process: 1. If an 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 the Community Development Specialist within five (5) days of the initial decision and voice their concern. If the applicant remains dissatisfied with the decision rendered after speaking with the Community Development Specialist, the detailed complaint and appeal should be put into writing and Page 7 11 submitted to the Director of Orange County's Housing and Community Development Department within ten (10) business days of the initial decision at 300 West Tryon Street, 3rd Floor of the Richard Whitted Building, Hillsborough, NC 27278. 2. Orange County will respond in writing to any complaints or appeals within fifteen (15) business days of receiving the written complaint and appeal. During the repair/modification process: 1. If the homeowner feels that repairs or modifications are not being completed per the contract, he/she must inform the contractor and applicable Orange County's Rehabilitation Specialist. 2. The Rehabilitation Specialist will inspect the work in question. If it is found that the work is not being completed according to contract, the Rehabilitation Specialist will review the contract and work write-up with the contractor, again and ask the contractor to remedy the problem. 3. If problems persist, a Mediation Conference between the homeowner and the contractor may be convened by the Rehabilitation Specialist and facilitated by the County's Housing and Community Development Director. 4. Should the Mediation Conference fail to resolve the dispute, the Housing and Community Development Director will render a written final decision. 5. If the Rehabilitation Specialist finds that the work is being completed according to the contract and work write-up, 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. 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 who are directly involved in the program, the North Carolina Housing Finance Agency and auditors. What about Conflicts of Interest? No officer, employee or other public official of the County, or member of the Board of County Commissioners, or entity contracting with the County that exercises any functions or responsibilities with respect to URP19 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 or business ties, during their tenure or for one year thereafter. Relatives of County employees, Board of County Commissioners and others closely identified with the County may be approved for rehabilitation assistance only upon public disclosure before the County Commissioners and written permission from NCHFA. What about Favoritism? All activities under URP19, including rating and ranking applications, inviting bids, selecting contractors and resolving complaints, will be conducted in a fair, open and non-discriminatory manner, entirely without regard to race, color, religion, national origin, sex, familial status and disability. Who can I Contact about URP19? Any questions regarding any part of this application or program should be addressed to: Diane Beecham, Community Development Specialist Orange County Department of Housing and Community Development P.O. Box 8181/300 W. Tryon Street Page 8 12 Hillsborough, NC 27278 919-245-4358/dbeecham@orangecountync.gov The designated staff person above, as well as all staff in Orange County's Housing and Community Development Department will do their utmost to answer questions and inquiries in the most efficient and correct manner possible. This Assistance Policy is adopted this_ day of 20_. Board Chair Witness Page 9 13 ATTACHMENT 3 ORANGE COUNTY PROCUREMENT AND DISBURSEMENT POLICY Housing Rehabilitation Programs, Including Local and NCHFA Urgent Repair Activities A. Procurement Policy 1. To the maximum extent practical, Orange County (the "County') promotes a fair, open and competitive procurement process as required under the North Carolina Housing Finance Agency's (NCHFA) Urban Repair Program (URP) and the County's other housing rehabilitation programs. Bids are invited from contractors who are included on the County's Approved Contractor Registry. Any current contractor listed with and approved by the County and in good standing (i.e. no unresolved past performance issues and not listed on the federal or state debarred list) will receive automatic approval status on the Contractor Registry. 2. To be listed on the Approved Contractor Registry, a contractor must complete an application, submit proof of insurance and have their recent work inspected and approved by the County's Rehabilitation Specialist. Orange County will get on an annual basis all contractors' insurance renewals. All contractors working on pre-1978 properties must have their firms be Renovate, Repair and Paint (RR&P) certified. Only contractors with an RR&P certificate on file will be invited to bid on pre-1978 properties. 3. A minimum of three (3) eligible contractors on the County's Approved Contractor Registry shall be invited to bid on each job and the lowest, most responsive and responsible bidder shall be selected for the contract. "Responsive and responsible" means the following: (a) the contractor is deemed able to complete the work in a timely fashion; (b) the bid is within fifteen percent (15%) in either direction of the County's cost estimate; (c) the contractor has not been suspended or debarred; and (d) there is no real or perceived conflict of interest. For Orange County's Local Urgent Repair Program, in emergency situations, a contractor may be selected from the Vendor List given their placement in the rotational process. In addition, for emergency situations, telephone or email bids or quotes will be accepted. Documentation of such bids or quotes will be maintained in the applicable file. See Item 8 below for more information on how Orange County will handle emergency situations. 4. 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. No contractor shall have more than three (3) open jobs at any one time. A job shall be considered "open" once a contract is signed. 5. Bid packages shall consist of an invitation to bid, work write-up(s) and bid sheet(s) for each job, including instructions for distribution and receipt of bids. For urgent repair activities, contractors will be given no less than seven (7) days in which to inspect the Page 1 14 property and prepare bid proposals. Each contractor will need access to all parts of the house in order to prepare a bid. A bid opening will be conducted at the Department of Housing and Community Development (DHCD) located at 300 W. Tryon Street, Hillsborough, NC at a specified date and time with all bidders invited to attend. For minor and comprehensive housing rehabilitation activities, contractors will be given no less than ten (10) days in which to inspect the property and prepare bid proposals. 6. Bids must include a cost-per-item breakdown with line item totals equaling the submitted bid price. Any discrepancies must be reconciled prior to a contract being awarded. 7. The County reserves the right to reject any or all bids at any time during the procurement process. 8. In the event of an emergency situation, the County reserves the right to waive normal procurement procedures in favor of more expedient methods, which may include seeking quotes and bids by telephone, email, fax and the like. Should such methods ever become necessary the transaction will be fully documented. In the event telephone bids are used, the County will call the first three (3) responsive contractors on the Approved Contractor Registry who have indicated a desire to be on the Telephone Call List. The County will track who has been called and been responsive and will rotate through the full list before beginning the rotation again. 9. All sealed bids will be opened publicly at the Department of Housing and Community Development located at 300 W. Tryon Street, Hillsborough, NC at a date and time specified in the bid invitation. All bidders are welcome to attend. Within seventy-two (72) hours of the bid opening, after the review of bid breakdowns and construction schedules, the winning bidder(s) will be selected. All bidders and the homeowner will be notified in writing of 1) the selection of the winning bid; 2) the amount of the winning bid; and 3) the specific reasons for the selection if the lowest bidder was not selected. 10. The contractor is 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. If applicable, the contractor will obtain a permit for lead hazard-related activities. The County Rehabilitation Specialist will closely monitor the construction 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, as applicable, inspect the work for compliance with the NC State Building Code and the local minimum housing code, when applicable. The homeowner will be responsible for working with the contractor to clear their personal property from the work areas as needed, as much as practicable. The contractor will be responsible for all clearing and cleaning activities necessary due to construction activities. 11. Any change to the original scope of work must be in writing in the form of a change order Page 2 15 to be agreed upon and signed by all parties to the original contract and two representatives of the County. The change order must detail any changes to the original contract price. 12. No work may begin prior to a contract being awarded and executed and a written order to proceed provided to the contractor. A pre-construction conference and a "walk through" must also be held prior to the commencement of the project. The pre-construction conference can be held at the DHCD and the walk through must be held at the project site. At this time, the homeowner, contractor and the Rehabilitation Specialist will discuss the details of the work to be completed. Project start and end dates will be finalized, along with any special arrangements such as weekend or evening work hours and the disposition of items to be removed from the home. Within twenty-four (24) hours of the pre-construction conference, the County will issue a "proceed order" formally instructing the contractor to commence work by the agreed upon date. 13. Orange County is an equal opportunity employer, implements non-discriminatory practices in its procurement and disbursement and will make special outreach efforts to include Minority/Women Business Enterprise (M/WBE) businesses within its contractor and subcontractor pool. Contractors will be chosen by the above criteria without regard to race, color, national origin, disability, religion, age, sex/gender, sexual orientation, gender identity and expression, marital status or veteran status. B. Disbursement Policy 1. All repair work must be inspected by the County's Rehabilitation Specialists, the local Building or Minimum Housing Code Inspector, when applicable and the homeowner prior to any payments to contractors. If all construction work is deemed satisfactory and all other factors and written agreements are in order, payment shall be issued upon presentation of an original cost-per-item invoice from the contractor. The contractor should allow up to (14) business days for processing of the invoice for payment. 2. The contractor is entitled to request two partial payments and a final payment. The first partial payment may be requested when the work is fifty percent (50%) complete. The second partial payment may be requested when the work is ninety percent (90%) complete. When a payment is requested, the Rehabilitation Specialist will inspect the work within three (3) days, determine the percentage of job completion and calculate a payment based on ninety percent (90%) of the total work completed (i.e. resulting in a ten percent (10%) hold back). For urgent repair projects that have contracts that are less than $5,000 there will be no ten percent (10%) hold back. 3. Following the completion of the construction, the contractor and the Rehabilitation Specialist will meet with the homeowner in a post-construction conference. At this time, the contractor will provide to the homeowner the owner's manuals and warranties on Page 3 16 equipment and materials and be available to answer any questions. 4. When the contractor declares the work complete, the Rehabilitation Specialist will thoroughly inspect the work as part of the project closeout. If any of the work is deemed unsatisfactory, it must be corrected prior to the authorization of final 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 as the work is deemed satisfactory. If a dispute occurs, contractors may follow the procedure dealing with complaints, disputes and appeals in the County's Urgent Repair Loan Pool Assistance Policy. Contractors must abide by the final decision as stated in the policy. The homeowner, Rehabilitation Specialist and Housing and Community Development Department Director must sign off on the work. After the receipt of the contractor's final invoice, inspections, certificate of completion and lien releases, the final payment will be processed. All material and workmanship will be guaranteed by the contractor for a period of one (1) year from the date of completion of the work. 5. Orange County assures, through this policy, that adequate funds shall be available to pay the contractor for satisfactory work. 6. All contractors, subcontractors and suppliers must sign a lien waiver prior to the disbursement of funds. The Orange County Procurement and Disbursement Policy, as revised, is adopted this day of 20 ORANGE COUNTY, NC BY: Chair, Board of County Commissioners ATTEST: Page 4