HomeMy WebLinkAboutAgenda - 03-02-2021; 8-f - Updates to the Assistance Policies for the 2020 NC Housing Finance Agency Urgent Repair Program and Essential Single-Family Rehabilitation Loan Pool 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: March 2, 2021
Action Agenda
Item No. 8-f
SUBJECT: Updates to the Assistance Policies for the 2020 North Carolina Housing Finance
Agency (NCHFA) Urgent Repair Program (URP20) and Essential Single-Family
Rehabilitation Loan Pool (ESFRLP20)
DEPARTMENT: Department of Housing and
Community Development
ATTACHMENT(S): INFORMATION CONTACT:
Attachment 1: URP20 Assistance Policy Emila Sutton, Director, Housing and
Attachment 2: ESFRLP20 Assistance Community Development, (919) 245-
Policy 2490
PURPOSE: To approve and authorize the County Manager to sign the revised URP20 and
ESFRLP20 Assistance Policies, thereby adopting the revised policies.
BACKGROUND: The North Carolina Housing Finance Agency (NCHFA) requires recipients of
Urgent Repair Program (URP) and Essential Single-Family Rehabilitation Loan Pool (ESFRLP)
funds to adopt an Assistance Policy for each program that describes how eligible applicants are
selected for the program, and how the bid solicitation and payment processes for the rehabilitation
work are conducted.
The Department of Housing and Community Development proposes revisions to the URP20
Assistance Policy in order to bring the policy into alignment with the County's adopted
Procurement and Disbursement Policy for rehabilitation and repair programs, which states that
URP projects will use the Contractor Registry to select contractors for projects on a rotating basis.
A revised copy of the policy is attached (Attachment 1).
The Department of Housing and Community Development also proposes a revision to the
ESFRLP20 Assistance Policy in order to allow for applications to the program to be received on
a rolling basis. Under the current policy, the application period closed on December 31, 2020;
however, only one application was received and funds remain to assist additional applicants.
Allowing the program to accept applications on a rolling basis will allow the Department to continue
advertising and receiving applications. A revised copy of the policy is attached (Attachment 2).
FINANCIAL IMPACT: There is no financial impact associated with this item.
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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.
The creation and preservation of affordable housing options helps to meet a basic need and
advances economic self-sufficiency.
• GOAL: CREATE A SAFE COMMUNITY
The reduction of risks from vehicle/traffic accidents, childhood and senior injuries, gang
activity, substance abuse and domestic violence.
Affordable housing options allow individuals to reduce risks associated with being un-housed.
ENVIRONMENTAL IMPACT: There are no Orange County Environmental Responsibility Goals
applicable to this item.
RECOMMENDATION(S): The Manager recommends that the Board approve and authorize the
Manager to sign the revised URP20 Assistance Policy and revised ESFRLP20 Assistance Policy,
thereby adopting the revised policies.
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Orange County Assistance Policy
Urgent Repair Program 2020
What is the Urgent Repair Program?
Orange County has been awarded $80,000 by the North Carolina Housing Finance Agency("NCHFA")
under the 2020 cycle of the Urgent Repair Program ("URP20").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 frail elderly
and persons with disabilities.A total of 12 households will be assisted under URP20.
This Assistance Policy describes who is eligible to apply for assistance under URP20, how applications for
assistance will be rated and ranked, what the form of assistance is, and how the repair/modification
process will be managed. Orange County has designed this URP20 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.
EMERGENCY and HEALTH Notifications: Due to the current COVID-19 pandemic, increased awareness of
the need to protect Orange County representatives and the homeowners they service from various health-
related exposures has become more apparent than ever. Homeowners participating in URP must agree to
follow all local, state, and federal guidelines for emergency preparedness surrounding the COVID-19
pandemic and any other emergency declared that includes their property address for the duration of
construction on the property.
Who is eligible to apply?
To be eligible for assistance under URP20 applicants must:
• Reside within the county limits of Orange County and own and occupy the home in need of repair
• Have a household income which does not exceed 50%of the County median income for the
household size (see income limits below)
• Have a special need (i.e. be >62 years old, handicapped or disabled, a single parent with a
dependent living at home, a Veteran, a large family with >5 household members or a household
with a child below the age of six with lead hazards in the home).
• Have urgent repair needs that cannot be met through other state-or federally-funded housing
assistance programs
URP20 Income Limits* for Orange County
Number in 30%of Median 50%of Median
Household (very-low income) (low income)
1 $19,100 $31,850
2 $21,800 $36,400
3 $24,550 $40,950
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4 $27,250 $45,450
5 $29,450 $49,100
6 $31,650 $52,750
7 $33,800 $56,400
8 $36,000 $60,000
*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 of the governing authority.
Outreach efforts of the Urgent Repair Program
Orange County will advertise or publish an article about the Urgent Repair Program in local English-
speaking and Spanish-speaking newspapers serving the County(such as The Daily Tarheel, The News of
Orange and La Noticia), at senior centers throughout the County, with the County's partner agencies, 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 URP20
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 children in the home) 3
Large Family(5 or more permanent residents) 2
Emergency(may submit without regard to application deadlines) 2
Child under six years of age with lead hazards in the home 2
Income (See Income Table above) Points
Less than 30%of County Median Income 10
30%to 50%of County Median Income 5
Under NCHFA Program Guidelines, a minimum of 50%of households assisted must have incomes which
are less than 30%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 URP20.
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Recipients of assistance under the URP20 will be chosen by the above criteria without regard to race,
color, religion, national origin, sex,familial status and disability.
The definitions of special needs populations under URP20 are:
• Elderly: An individual aged 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 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 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 lead hazards in the home: a child below the age of six living in the applicant house which
contains lead hazards.
Client referral and support services
Many homeowners assisted through the Urgent Repair Program may also need other services. When the
Urgent Repair Program staff meet the homeowner during the work write-up process,they will discuss the
resources and programs available in Orange County and provide pamphlets and a list of the agencies with
contact information. With the homeowner's permission, a case file will be created and a staff person will
follow up with the homeowner concerning the available services in the referral network.
What is the form of assistance under URP20?
The County will provide assistance to homeowners, whose homes are selected for repair/modification in
the form of a loan. Homeowners will receive an unsecured deferred, interest-free loan, forgiven at a rate
of$2,000 per year, until the principal balance is reduced to zero.
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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 URP20 is $10,000.
What kinds of work will be done?
Only repairs that address imminent threats to the life and/or safety of occupants of the dwelling unit or
accessibility modifications will be performed 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 URP20 must meet or exceed NC Residential Building Code.
Who will do the work on the homes?
The County is obligated under URP20 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 those very difficult
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 Contractor
Registry are welcome to invite them to apply.)
A minimum of three 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" 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 Orange County URP20, 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 may apply by
completing an application form, available at http://orangecountync.gov/2211/Home-Repair-
Programs or by contacting Erika Brown at(919) 558-2700 or ebrown@ticog.org.Applications will
be accepted on a rolling basis beginning October 21, 2020 until all funds are committed. Proof of
ownership and income will be required.Those who have applied for housing assistance from the
County in the past will not automatically be reconsidered.A new application will need to be
submitted.
2. Preliminary inspection:The County's Rehabilitation Specialist will visit the homes of potential loan
recipients to determine the need and feasibility of repairs/modifications.
3. Screening of applicants: Applications will be rated and ranked by the County based on the priority
system outlined on page 2. The first round of households to be assisted will be selected by
November 30, 2020. Household income will be verified for program purposes only(information
will be kept confidential). Ownership of property will be verified along with other rating factors.
From this review,the twelve (12) most qualified applicants will be chosen according to the priority
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system described above.There will also be a list of alternates in the order of qualification. If fewer
than twelve (12) applications are received by November 30, or if funds remain to assist more than
twelve (12) units, applications will continue to be accepted on a rolling basis until all funds are
committed.Applicants not receiving notification by November 30, 2020 that they were chosen
may contact Erika Brown at (919) 558-2700 to confirm the disposition of the application.
4. Applicant interviews:Approved applicants will be provided detailed information on assistance,
program repair/modification standards and the contracting procedures associated with their
project at this informational interview.
5. Work write-up:The 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, if any.The owner should report any known problems such as electrical short
circuits, blinking lights, roof leaks and the like.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 bidding is completed.
6. Formal agreement:After 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. Contractor selection:The County will, at its discretion (based on the availability of the contractor,
demands of the job, and recent history of performance), select a contractor from the Contractors'
Registry.The Rehab Specialist will make an effort to offer opportunity to all qualified contractors
throughout each year by using the Registry on a rotational basis, returning to the top of the list
once all contractors have been offered an opportunity to participate. Identified contractors will be
provided with detailed work write-ups on each job and must submit a detailed and reasonable
quote for the proposed work.The contractor will bill the Orange County Housing and Community
Development Department and submit all invoices to the Rehab Specialist for review and approval
prior to any disbursements from the Orange County Housing and Community Development
Department.
8. Execution of loan and contract:The loan will be executed as well as the repair/modification
contract prior to work beginning on the project.This contract will be between the contractor and
homeowner, with the County signing 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.
9. Pre-construction conference:A pre-construction meeting will be held at the home. At this time,
the homeowner, contractor and 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 and 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 "proceed order" formally instructing the contractor to commence by the agreed-upon date
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within 24 hours of the pre-construction meeting.
10. 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. Code Enforcement Officers
will inspect new work for compliance with the State Building Code as required by the guidelines of
URP20.The homeowner will be responsible for working with the contractor toward protecting
personal property by clearing work areas as much as practicable.
11. 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 owner, 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 owner. 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 owner.
12. Payments to 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.The contractor will also be responsible for handing over all
owner's manuals and warranties on equipment, and reviewing with the homeowner all operating
and maintenance requirements for new equipment installed.
13. Closeout: Once each item outlined in section 12 has been satisfied and the homeowner has signed
a Certificate of Satisfaction,the job will be closed out(fully completed).
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 October 21, 2020.
• First round of households selected from applications on November 30, 2020.
• All rehabilitation work must be under contract by October 13, 2021.
• All rehabilitation work must be completed by December 31, 2021.
How do I request an application?
• Contact Erika Brown
(919) 558-2700
ebrown@ticog.org
• OR download an application online: http://orangecountync.gov/2211/Home-Repair-Programs
• OR pick up an application at the Orange County Department of Housing and Community
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Development office at 300 W.Tryon Street, Hillsborough, NC 27278.
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.The following procedures are designed to provide an avenue for resolution of
complaints and appeals.
During the application process:
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 Erika Brown within five (5) 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.
A written appeal must be made within ten (10) business days of the initial decision on an application.
Orange County will respond in writing to any complaints or appeals within 10 business days of receiving
written comments.
During the repair/modification process:
If the homeowner feels that repairs or modifications are not being completed per the contract, he/she
must inform the contractor and the Rehabilitation Specialist.
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 with the contractor
and ask the contractor to remedy the problem.
If problems persist, a mediation conference between the homeowner and the contractor may be
convened by the Rehabilitation Specialist and facilitated by the Orange County Housing and Community
Development Director.
Should the mediation conference fail to resolve the dispute,the Director will render a written final
decision.
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.
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 County Commissioners, or
entity contracting with the County that exercises any functions or responsibilities with respect to URP20
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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 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 URP20, 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 URP20?
Any questions regarding any part of this application or program should be addressed to:
Erika Brown David Saconn
(919) 558-2700 (919) 612-1527
ebrown@ticog.org dsaconn@orangecountync.gov
These contacts 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 2021.
County Manager
Notary Public
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Orange County Assistance Policy
Essential Single-Family Rehabilitation Loan Pool 2020
What is the Essential Single-Family Rehabilitation Loan Pool?
Orange County has been awarded Membership by the North Carolina Housing Finance Agency
("NCHFA") under the 2020 cycle of the Essential Single-Family Rehabilitation Loan Pool ("ESFRLP20").
This program provides Members with funds via a "loan pool"to assist with the rehabilitation of
moderately deteriorated homes that are owned and occupied by lower-income, special need
households ESRLP20 assists eligible households by facilitating aging in place, meeting minimum housing
code requirements, promoting long-term affordability, lowering operating costs, and stabilizing pre-
1978 homes that include children aged six or under whose health is threatened by the presence of lead
hazards.
Orange County has been allocated an initial set-aside of$190,000 to be used for rehabilitation of five (5)
homes in Orange County.After demonstrating successful use of this allocation, the County may access
additional funds,when available, on a unit-by-unit basis from the ESFRLP loan pool to assist additional
homes.
This Assistance Policy describes who is eligible for assistance under ESFRLP20, how applications for
assistance will be ranked, what the terms of assistance are, and how the rehabilitation process will be
managed. Orange County has designed the ESFRLP20 project to be fair, open and consistent with its
approved application for funding and with ESFRLP20 Program Guidelines.
The funds provided by NCHFA come from the U.S. Department of Housing and Urban Development
("HUD") HOME Investment Partnerships Program ("HOME")for construction-related costs (hard costs)
and will be provided as no interest, no payment loans,forgiven at the rate of$5,000 per year. Non-
construction- related costs (soft costs including lead/asbestos inspections/clearances, radon testing and
environmental reviews)will be provided in the form of a grant.
EMERGENCY and HEALTH Notifications: Due to the current COVID-19 pandemic, increased awareness
of the need to protect Orange County representatives and the homeowners they serve from various
health related exposures has become more apparent than ever. Homeowners participating in the
ESFRLP program must agree to follow all local, state and federal guidelines for emergency preparedness
surrounding the COVID-19 pandemic and any other emergency declared that includes their property
address for the duration of construction on the property.
Who is eligible to apply?
To be eligible for ESFRLP20 assistance, applicants must:
• Reside within the county limits of Orange County and own and occupy the home in need of
rehabilitation
• Have a household income which does not exceed 80%of the County median income for the
household size (see income limits below)
• Have a special need (i.e., be >62 years old, handicapped or disabled, a single parent with a
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dependent living at home, a Veteran, a large family with >5 household members or a household
with a child below the age of six with lead hazards in the home)
• Have home rehabilitation needs do not exceed the ESFRLP Program limit of$30,000 and must
include all Essential Rehabilitation Criteria as described in the ESFRLP20 Administrator's Manual
(available online at www.nchfa.com).
Unfortunately, not all homes can be rehabilitated to meet the Essential Rehabilitation Criteria with the
limited funding available. Some otherwise-eligible households may be deemed ineligible for assistance
because their homes fail this test.
ESFRLP20 Income Limits*for Orange County
Number in 80%of Median
Household
1 $50,900
2 $58,200
3 $65,450
4 $72,700
5 $78,550
6 $84,350
7 $90,150
8 $96,000
*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 of the governing authority.
What Types Of Houses Are Eligible?
Properties are eligible only if they meet all of the following requirements:
• The property must require at least$5,000 of improvements to meet ESFRLP Property Standards
or the local minimum housing code.
• Site-built and off frame modular units are eligible for assistance. Manufactured housing is
eligible for assistance if the foundation and utility hookups are permanently affixed including
removal of all transporting equipment (e.g., wheels, axles,tongue) and installation of a full
masonry foundation and tie-downs.
• No more than fifty percent(50%)of the total area of the unit may be used for an office or
business (e.g., day care, hair salon, room rental, etc.). Program funds may only be used to
improve the residential exterior, interior, and systems portion of mixed-use buildings.
• The property must be free of environmental hazards and other nuisances as defined by all
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applicable codes or regulations, or any such hazards or nuisances must be corrected as part of
the rehabilitation of the home. Orange County's Rehabilitation Specialist will determine the
presence of any known environmental hazards/nuisances on the site and if they can be
removed through rehabilitation.
• Properties cannot be located in the right-of-way of any impending or planned public
improvements. Orange County staff will assist in making this determination.
• The property cannot be located on a site that is endangered by mudslides, landslides or other
natural or environmental hazards. If needed,the Rehabilitation Specialist will work with the
homeowner to make this determination.
• The property may be located in the 100-year flood plain if the lowest finished floor level
(verified by an elevation certificate provided by the homeowner) is above the base flood
elevation and the property will be covered by flood insurance.The property must be in
compliance with Orange County's flood plain ordinance. All things considered equal, properties
located outside the 100-year flood plain will be given priority over properties located in the
100-year flood plain. Orange County will verify whether the home is in the flood plain.
• The property cannot have been repaired or rehabilitated with public funding of$30,000 or
more within the past ten (10)years without NCHFA approval.
How are applications ranked?
There are many more ESFRLP-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. If there are more eligible applicants with eligible houses
than can be treated with existing funding, Orange County may be able to treat additional houses with
unrestricted pool funds Pool applicants will come from the original applicant list and be considered
according to which received the most points. If alternate pool applicants are not identified on the
original applicant list and must be solicited, the solicited, eligible, pool applicants will be selected on a
first come,first to qualify basis.
Priority Ranking System for ESFRLP2O
Emergency Need Points
Threat of imminent eviction/removal; must meet Special Need(s) and income
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requirements; applications received at any time
Special needs (for definitions,see below) Points
Household with a child under age 6 with lead hazards in the home 4
Household member who is elderly(62 or older) 4
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Household member with a disability 4
Household member who is a Veteran 4
Multiple household members who are elderly, Veterans, or have a disability 4
Income(see income table above) Points
Less than 30%of County Median Income 4
30%to 50% of County Median Income 4
50%to 80%of County Median Income 4
Definitions under ESFRLP are:
• Elderly:An individual aged 62 or older.
• Person with a disability:A person who has a physical, mental, or developmental disability that
greatly limits one or more major life activities, has a document 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 household) who has resided in the dwelling unit for at least three
(3) months prior to the submission of the family's application.
• Veteran:A person who is a military veteran, is defined as one who served in the active military,
naval, or air service (i.e.,Army, Navy, Air Force, Marine Corps, and Coast Guard; as a
commissioned officer of the Public Health Service; or as a commissioned officer of the National
• Oceanic and Atmospheric Administration or its predecessors), and who was discharged or
released there from under conditions other than dishonorable. Provide DD-214 form to
demonstrate.
• 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 timeframe 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 elevated based on the ability of the program to complete the
work in a timely manner that meets the goal of assisting homeowners to remain in their home.
This may be documented with a doctor's letter or eviction notice.
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Recipients of assistance under ESFRLP will be chosen by the above criteria without regard to race, color,
religion, national origin, sex,familial status, and disability.
What are the terms of assistance under ESFRLP?
The form of ESFRLP assistance is a 0% interest,forgivable loan covering the hard costs associated with
the rehabilitation of the home and a grant for the soft costs.These will be two separate documents or
sets of documents.
The loan: NCHFA will create loan documents for the homeowner(s) including a Promissory Note and
Deed of Trust covering hard costs for the rehabilitation in an amount not to exceed $30,000.This loan
covering the hard costs remains 0% interest and-forgivable at$5,000 per year for as long as the owner
resides in the home or until the balance is reduced to $0.The term of the loan is dependent upon the
loan amount and the number of years it takes to bring the balance of the loan to$0 when forgiven at
$5,000 per year. For example, if the amount of the loan is$21,452, then the term is five (5)years:
$20,000 forgiven over the first four(4)years and $452 forgiven at the end of the 5th year.The maximum
term of the loan will be six(6)years.
As long as the borrower lives in the home, no payments on the loan will be required. If the recipient
prefers, the loan can be paid off at any time to NCHFA, either in installments or as a lump sum payment.
Furthermore, under certain circumstances NCHFA 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 loan without being income eligible. However, the lien remains on the property. A buyer
who may wish to buy the property to live in may assume the loan so long as they can document that
they are income-eligible( 80%AMI). Default can occur if the property is sold or transferred to another
person and/or if the borrower fails to use the home as a principal residence, without prior written
approval of NCHFA.
The grant:To pay for soft costs including application outreach/intake/management, environmental
reviews/inspections/testing and project assessment/documentation/estimating/bidding, NCHFA will
create a Grant Agreement not to exceed $10,000. The grant has no repayment or recovery terms.
What kinds of work will be done?
Each house selected for assistance must be rehabilitated to meet ESFRLP Rehabilitation Criteria.That
means every house must, upon completion of the rehabilitation:
• Meet the more stringent requirements of either NCHFA's Essential Property Standard or Orange
County's Minimum Housing Code.These are so-called "habitability standards" that set minimum
standards for decent, safe and sanitary living conditions.Additionally,the home must meet
applicable Lead Based Paint regulations 24 CFR Part 35.
• Retain no "imminent threats" to the health and safety of the home's occupants 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 an infestation of insects or a crawlspace that is too damp.
These requirements are spelled out in full in the ESFRLP Administrator's Manual which you may view, at
reasonable times, upon request, at the Housing and Community Development office of Orange County
or anytime online at www.nchfa.com
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In addition to the above items that must be done to satisfy NCHFA requirements,the scope of work may
include approved items meant to reduce future maintenance and operational costs or to further protect
homes from natural disasters and/or home modifications designed to enable greater accessibility for
household members to function more independently as they age.
Once the rehabilitation is complete, major systems in the home that,with reasonable maintenance and
normal use, should be capable of lasting another five (5)years include: structural support, roofing,
cladding and weatherproofing, plumbing, electrical and heating/cooling systems.
Of course, contractors performing work funded under ESFRLP are responsible for meeting all local
requirements for permits and inspections.All work done under the program must be performed to
meet NC State Residential Building Code standards.This does not mean, however,that the whole house
must be brought up to current Building Code Standards. Upon the date of approval by Orange County of
the contractor's request for final payment, a one-year warranty on all products and workmanship will
begin.
What about Lead Based Paint?
Until it was discovered to be a health hazard, 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 ESFRLP, 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. If required, lead-based paint hazard reduction and/or abatement will be performed by
contractors who are trained and certified to perform such work.
It may be necessary for the household to relocate during the construction process for protection against
lead poisoning. If relocation is required, it shall be the responsibility of the homeowner to pay for the
relocation.
Who will do the work on the homes?
Orange County is obligated under ESFRLP 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, Orange County will invite bids only from licensed general contractors who
are part of an "Approved Contractors Registry". For additional information about procurement and
disbursement procedures, please refer to the Orange County ESFRLP20 Procurement and Disbursement
Policy.
• All qualified members of the Contractors Registry will be invited to bid on each job, and the
lowest responsive and responsible bidder will be selected for the contract.
• All contractors working on pre-1978 units must be Renovate, Repair and Paint Rule (RR&P)
Certified Renovators working for Certified Renovation firms.
• Homeowners who know of quality rehabilitation contractors that are not on the approved
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contractors' registry are welcome to invite them to apply.
What are the steps in the process, from application to completion?
You now have information about how to apply for the Essential Single-Family Rehabilitation Loan Pool
(ESFRLP) and what type of work can be done through the Program Let's go through the steps for getting
the work done:
1. Completing a pre-application form: Homeowners who wish to apply for assistance may apply
by contacting Erika Brown at (919) 558-2700 or ebrown@ticog.org. Applications will be
accepted on a rolling basis beginning October 30, 2020 until all funds are committed. 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 and must complete a new pre-
application form.
2. Client referral and support services: Many homeowners seeking assistance through the
Essential Single-Family Rehabilitation Loan Pool may also need other services. If the ESFRLP staff
meets the homeowner during the application process,they will provide pamphlets and a list of
the agencies with contact information for the resources and programs available in the County.
For households that meet the requirements of the pre-application step and qualify to receive
assistance through the ESFRLP program, additional verbal discussion will be offered during the
screening of applicants and/or pre-rehab inspection steps of the program. With the
homeowner's permission, a case file will be created and a staff person will follow up with the
homeowner concerning the available services in the referral network.
3. Preliminary inspection: Orange County's Rehabilitation Specialist will visit the homes of eligible
households to determine the need and feasibility of the home for rehabilitation. Homeowners
must inform staff of any known pest infestations prior to the visit.
4. Screening of applicants:Applications will be ranked by Orange County based on the priority
system outlined on page 3 and the feasibility of rehabilitating the house.The first round of
households to be offered assistance will be selected by January 31, 2021. Household income
will be verified for program purposes only(information will be kept confidential). NCHFA will
verify ownership of the property by conducting a title search. From this review,the five (5) most
qualified applicants will be chosen according to the priority system described above;the
remaining applicants will be placed on a list of alternates in the order that they qualified. If
fewer than five (5) applications are received by January 31, or if funds remain to assist more
than five (5) units, applications will continue to be accepted on a rolling basis until all funds are
committed. Orange County will then submit to NCHFA an ESFRLP Loan Application and
Reservation Request for each potential borrower for approval. Applicants not selected for
ESFRLP assistance will be notified in writing.
5. Written agreement:A HOME Owner Written Agreements,between the homeowner and Orange
County,will be executed as part of the Loan Application and Reservation Request procedure
{that formally commits funds to a dwelling unit).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 defines the ESFRLP maximum amount and
form of assistance being provided to the homeowner, the scope of work to be performed, the
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date of completion and the rehabilitation criteria and standards to be met.
6. Pre-rehab inspection and 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, roof 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, radon and asbestos.
7. 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 contractors.
8. Lead and other testing: Orange County will arrange for a certified firm to inspect all the pre-
1978 constructed homes for potential lead (required) and asbestos hazards (as deemed
necessary by the Rehabilitation Specialist in all homes built during, before, and after 1978).All
homes will be tested for radon.The owner will receive information covering the results of the
tests and any corrective actions that will be needed as part of the rehabilitation.
9. Bidding:The work write-up and bid documents will be conveyed to all contractors from the
Contractors Registry. Contractors will be given no less than seven (7) days in which to inspect
the 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 Orange County Housing
and Community Development Department office at a specified date and time, with all bidders
invited to attend.
10. Contractor selection: Within 72 hours of the bid opening the winning bidders 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, 3)°the amount of the County's cost estimate, and 4)the
specific reasons for the selection, if other than the lowest bidder was selected.
11. Loan closing and contract execution: Loan documents (Promissory Note and Deed of Trust) will
be prepared by NCHFA as the lender and executed by the homeowner. By law, homeowner's
have the right to hire legal representation of their choosing at loan closing. If a homeowner
does not have representation at the closing,the borrower must sign a NCHFA "Legal Advice
Disclosure" . Rehabilitation contract documents will be executed by the homeowner and
contractor with Orange County signing on as an interested third party prior to the
commencement of any construction. Orange County will facilitate with the loan closing and
recordation of these documents and forward the recorded documents to NCHFA.
12. Pre-construction conference:A pre-construction conference will be held at the selected
applicant's home. At this time,the homeowner, contractor and ESFRLP Orange County program
representatives will discuss the details of the work to be completed 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. Orange County will issue a "proceed
order"formally instructing the contractor to commence work by the agreed-upon date.
13. Construction:The contractor is responsible for obtaining and posting all permits for the project
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ORANGECOUNTY HOUSING&COMMUNITY DEVELOPMENT
before beginning work. Orange County ESFRLP Program staff will closely monitor the contractor
during the construction period and local Code Enforcement Officials will inspect the work.To
protect personal property the homeowner will be responsible for working with the contractor
toward clearing work areas of personal property as needed as much as practicable.The
contractor will be responsible for all clearing and cleaning activities necessary due to
construction activities.
14. Change Orders:All changes to the scope of work must be approved by the owner,the
contractor,the Orange County Rehabilitation Specialist, and reduced in writing as a contract
amendment ("change order").The owner, contractor and two Orange County personnel must
execute any change order agreements to the construction contract.
15. Progress payments:The contractor is entitled to request up to three (3) partial payments and a
final payment. When a payment is requested,the Rehabilitation Specialist will inspect the work
within three (3) days.
16. Closeout: When the Rehabilitation Specialist and the homeowner are satisfied that the contract
has been fulfilled,the homeowner, Project Administrator and Rehabilitation Specialist will sign
off on the work. 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 as established by Orange County's
approval date of the final pay requisition. Orange County will notify the homeowner in writing
of this date.
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 on equipment and materials to the homeowner.
The contractor and Rehabilitation Specialist will go over operating and maintenance
requirements for the new equipment, materials and appliances and discuss general
maintenance of the home with the Homeowner.The homeowner will have the opportunity to
ask any final questions about the work.
18. Final loan amount determination: If, upon completion of all rehabilitation work,the contract
price has changed due to the effect of change orders and there is a need to modify the loan,
NCHFA will prepare an estoppel for a loan reduction or modification agreement for loan
increases as necessary at the time of closeout of the unit to modify the loan amount when there
is a need for a change order involving a change in the original loan amount).The loan will
remain the property of NCHFA, with original documents remaining there for storage and
servicing. Please note that it is the responsibility of the owner to record an estoppel if they wish
this to be reflected in the Deed of Trust.
19. The warranty period: It is extremely important that any problems with the work that was
performed be reported by the homeowner to the Orange County Rehabilitation Specialist or
other representative, as soon as possible in writing.All bona fide defects in materials and
workmanship reported within one (1)year of completion of construction will be corrected free
of charge by the contractor.
What are the key dates?
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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 October 30, 2020.
• Applications must be turned in at the Orange County Housing and Community Development
Office by 5:00 PM on December 31, 2020.
• Selection of units will be made on January 31, 2021.
• All rehabilitation work must be under contract by December 31, 2022.
• All rehabilitation work must be completed by June 15, 2023.
How do I request an application?
• Contact Erika Brown
(919) 558-2700
ebrown@ticog.org
• OR download an application online: http://orangecountync.gov/2211/Home-Repair-Programs
• OR pick up an application at the Orange County Department of Housing and Community
Development office at 300 W. Tryon Street, 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 dispute
decisions, work completed, or other issues.The following procedures are designed to provide an avenue
for resolution of complaints and appeals.
During the application process:
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 Erika Brown within five (5) 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. A written appeal must be made within ten (10) business days of the initial
decision on an application.
Orange County will respond in writing to any complaints or appeals within ten (10) business days of
receiving written comments.
During the rehabilitation process:
If the homeowner feels that construction is not being completed according to the contract, he/she must
inform the contractor and the Rehabilitation Specialist.
The Rehabilitation Specialist will inspect the work in question. If he finds that the work is not being
completed according to the contract,the Rehabilitation Specialist will review the contract with the
contractor and ask the contractor to correct the problem.
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If the Rehabilitation Specialist finds that the work being completed according to contract,the complaint
will be added to the applicant's file.The Rehabilitation Specialist and the homeowner will discuss the
concern and the reason for the Rehabilitation Specialist's decision.
If problems persist,the homeowner must put the concern in writing and a mediation conference
between the homeowner and the contractor may be convened by the Rehabilitation Specialist and
facilitated by the Orange County Housing and Community Development Director.
Should the mediation conference fail to resolve the dispute,the Director 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, PO Box 28066, Raleigh, NC
27611-8066, (919) 877-5627.
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 Orange 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 employee or board member of Orange County, or entity contracting with Orange County, who
exercises any functions or responsibilities with respect to the ESFRLP17 project shall have any interest,
direct or indirect, in any contract or subcontract for work to be performed with project funding, either
for themselves or those with whom they have family or business ties, during their tenure or for one year
thereafter. Relatives of Orange County employees or of Orange County board members and others
closely identified with, may be approved for rehabilitation assistance only upon public disclosure before
the Orange County Board of Commissioners and written permission from NCHFA.
What about favoritism?
All activities under ESFRLP20, 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.
Outreach Efforts of the ESFRLP Program
The County makes citizens aware of the ESFRLP program and other housing rehabilitation opportunities
through various service providers and specific outreach efforts.At minimum,the County will advertise
the Essential Single-Family Rehabilitation Loan Pool Program via the following media/venues:the local
English-speaking and Spanish-speaking newspapers serving the County(such as The Daily Tarheel, The
News of Orange and La Noticia), senior centers and community centers throughout the County, 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.
Who can I contact about the ESFRLP program?
Any questions regarding any part of this application or program should be addressed to:
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ORANGEEOUNTY HOUSING&COMMUNITY DEVELOPMENT
Erika Brown David Saconn
(919) 558-2700 (919) 612-1527
ebrown@ticog.org dsaconn@orangecountync.gov
This Assistance Policy is adopted this day of 2021.
County Manager
Notary Public