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HomeMy WebLinkAboutAgenda - 09-02-2008 - 4gORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: September 2, 2008 Action Agenda Item No. _ SUBJECT: Housing Rehabilitation Program - N.C. Housing Finance Agency DEPARTMENT: Housing/Community Dev. PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Assistance. Policy INFORMATION CONTACT: Procurement/Disbursement Policy Tara L. Fikes, 919-245-2490 PURPOSE: To adopt Assistance, Procurement, and Disbursement Policies for the 2008 Single Family Housing Rehabilitation Program funded by the N.C. Housing Finance Agency. BACKGROUND: In early 2008, the County received $400,000 from the N.C. Housing Finance Agency (NCHFA) to provide housing rehabilitation services for approximately 15 low-income homeowners living in substandard housing in all areas of the County excluding the Town of Chapel Hill. One requirement of this funding is the adoption of an Assistance Policy that governs the administration of the Orange County program. Additionally, NCHFA requires the County to adopt a Procurement Policy that details the bid solicitation process and a Disbursement Policy that details the payment process. All policies have been drafted and are attached to this abstract for review and approval. FINANCIAL IMPACT: This $400,000 award represents additional funding available in the community for the repair of substandard housing. Specifically, this funding along with the $400,000 Community Development Block Grant received in 2007 provides a total of $800,000 (minus administrative expenses) available for housing repair for the next two years. RECOMMENDATION (S): The Manager recommends that the Board adopt the Assistance Policy, Procurement Policy, and Disbursement Policy for the 2008 Single Family Housing Rehabilitation Program funded by the N.C. Housing Finance Agency. .~~-.j C7'~ Orange County Assistance Policy For the 2008 Cycle of the Single-Family Rehabilitation Program What is the Single-Family Rehabilitation Program? Orange County ("the County") has been awarded $400,000 by the North Carolina Housing Finance County ("NCHFA") under the 2008 cycle of the Single-Family Rehabilitation Program ("SFR2008"). This program provides funds to assist with the rehabilitation of moderately deteriorated homes that are owned and occupied by lower-income households. Orange County plans to apply the funds toward the rehabilitation of about ten (10) houses within Orange County. This Assistance Policy describes who is eligible to apply for assistance under the SFR program, how applications for assistance will be rated and ranked, what the terms of assistance are and how the whole rehabilitation process will be managed. The County has tried to design this SFR2008 project to be fair, open, and consistent with the County's approved application for funding and with NCHFA's SFR Program Guidelines. The funds provided by NCHFA come from the US Department of Housing and Urban Development's (HUD) federal HOME Investment Partnerships Program. The form of assistance will be no interest, no payment loans which are forgiven at the rate of $3,000• per year with a grant of up to $8,000 for lead hazard reduction activities when applicable. Who is eligible to apply? There are three major requirements to be eligible for SFR2008 assistance. First, only elderly (62+) or disabled owner-occupants are eligible. Disabilities must be verifiable. Secondly, the homeowner's family or household must be below a certain income limit. Finally, the applicant's house must be deteriorated, but not so much that the homes selected for rehabilitation cannot be brought up to standards with the limited funding available. Unfortunately, some otherwise-eligible families will be deemed ineligible because their homes fail this test. More specifically, to be eligible for consideration, homeowners must meet the following requirements: • Applicants for SFR rehabilitation funds must prove that they own and occupy the property to be rehabilitated as their primary residence. • Applicants must reside within the service area. • Applicants' homes must meet all of the tests listed below. (See "What types of houses are eligible?"below) • Applicants' household incomes must fall below 80% of the area median. (See far right column of chart below.) 2008 Income Limits for Orange County's Single-Family Rehabilitation Program Number in Household 3D% of Median 50% of Median ("Very Low Income' 80% of Median (°Low Income") 1 $15,000 $24,950 S39 950 2 $17,100 $28,500 $45,650 3 $19,250 $32,100 $51,350 4 $21,400 $35,650 $57,050 5 $23,100 $38,500 $61600 6 $24,800 $41,350 ;66 200 7 $26,550 $44,200 $70 750 8 $28,250 $47,050 $75 300 What types of houses are eligible? Properties are eligible only if they meet all of the following requirements: • The property must be an owner-occupied, single-family house within Orange County. • The property must require at least $5,000 of improvements in order to meet SFR program standards. • The property must be free of environmental hazards and other nuisances as defined by all applicable codes or regulations, or any such hazards or nuisances must be corrected as part of the rehabilitation of the unit. The County's Rehabilitation Specialist will determine whether there are environmental hazards/nuisances present on the site and if they can be removed through rehabilitation. • The property must be economically feasible to rehabilitate. This means that it must be possible to bring the unit into compliance with all SFR2008 rehabilitation standards at a cost not exceeding the program limits, which is the lesser of $40,000 or $48,000 for homes that require lead hazard reduction. • The average cost of rehabilitation for the 10 units to receive assistance must be less than $37,500, therefore some applicants may have to be declined in order to keep the average cost below that level. • Properties cannot be located in the right-of--way of any impending or planned public improvements. The County's Rehabilitation Specialist will assist in making this determination. • The property must be current with all taxes. County staff will assist in verifying status. • The property cannot be located on a site that is endangered by mudslides, landslides or other natural or environmental hazards. The Rehabilitation Specialist will work with the homeowner to make this determination, if needed. • Manufactured housing is not eligible for assistance. • The property may not be located in a flood hazard area. (Orange County will verify whether the home is in the flood plain.) 4 The property cannot have been repaired or rehabilitated with public funding of $5,000 or more within the past 10 years. Properties must remain affordable after rehabilitation meaning the post rehabilitation value cannot exceed $200,160. Orange County makes this determination after bids are received and the results will be available for review. Informing potential applicants about SFR2008 will consist of several measures. All local governments in the County will be notified that the project is unden~vay. A press release will be issued to the local newspapers serving Orange County. Information will also be placed at the Senior Centers, Department of Social Services, Health Department, local housing non-profit organizations, and local churches. How are applications ranked? There are many more eligible households (with eligible houses) than can be assisted with the available funds. (Statewide, less than one eligible household out of 1,000 can be assisted under SFR2008.) 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 of special need. The applications will be ranked according to which receive the most points. Priority Ranking System for Orange County's zuuts Singe-ramily Rehabilitation Program Special Needs (for definitions, see below) Points Elderly Head of Household (62 or older) 4 Disabled Head of Household 4 Disabled or Elderly Household Member (not Head of Household) 2 Income (See Income Table above) Points Less than 30% of County Median Income 8 30% to 50% of County Median Income 5 50% to 80% of County Median Income 1 In the case of equivalent rankings based on the above criteria the applicant with the lowest percentage of median income will rank highest. The definitions of special needs populations are: • Elderly. An individual aged 62 or older. • Disabled: A person who has a physical, mental or developmental disability that greatly limits one or more major life activities, has a record of such impairment, or is regarded as having such impairment. • Head of Household: The person or persons who own(s) the house. • Household Member. Any individual who is an occupant (defined below) of the unit to be rehabilitated shall be considered a "household member" (the number of 5 household members will be used to determine household size and all household members are subject to income verification). Occupant. An occupant is defined as any immediate family member (mother, father, spouse, son/daughter of the head of the household, regardless of the time of occupancy); or non-immediate family member who has resided in the dwelling at least 3 months prior to the submission of the family's application. Recipients of assistance under the SFR program will be chosen by the above criteria without regard to race, creed, sex, color or national origin. What are the terms of assistance under SFi22008? Orange County will provide several types of assistance to the homeowners whose homes are selected for rehabilitation. Orange County will determine the scope of work needed to meet SFR program standards, prepare a work write-up and bid documents, solicit competitive bids from approved contractors, provide contract documents, conduct a pre- construction conference, inspect work in progress, and disburse funds to the contractor. To pay for the rehabilitation work, Orange County will provide part of the funds in the form of an interest-free forgivable loan to the homeowner forgiven at the rate of $ 3000 per year with a grant of up to $8,000 for lead hazard reduction activities when applicable. This is a loan, placing a "mortgage",alien on the property and it will be secured by a Deed of Trust. As long as the borrower lives in the home, no payments on the loan will be required. Of course, if the recipient prefers, the loan can be paid off at any time, either in installments or as a lump sum payment. Furthermore, no payment will be required as long as the house continues to be both owned and occupied by a household whose income is less than 80% of the median income. That means any heir who may inherit the property from the original borrower, or any buyer who may wish to buy the property to live in, may "assume" the loan with prior written approval of the North Carolina Housing Finance County, and make no payments, so long as they can document that they are income-eligible. Default can occur if the property is sold or transferred to another person, if the borrower fails to use the home as a principal residence or upon the death of the borrower. Each unit must use a minimum of $5,000, but not more than $40,000 or $48,000 for lead hazard reduction of SFR2008 funds. The amount will depend on the scope of work, as determined by the Rehabilitation Specialist, and the best bid received. The average cost of rehabilitation for the 10 units to receive assistance must be less than $35,000, therefore some applicants may have to be declined in order to keep the average cost below that level. Orange County will offer, subject to NCHFA approval and homeowner acceptance, the possibility of having access to the Duke Power loan pool to finance certain energy related costs if the lowest bid exceeds the cost limits of the SFR Program. This will be on a case by case basis. What kinds of work will be done? Each house selected for assistance will be rehabilitated to meet all SFR2008 program rehabilitation standards. That means every house must, upon completion of the rehabilitation: • Meet the US Department of Housing and Urban Development ("HUD°) Section 8 Housing Quality Standards and any Minimum Housing Codes which apply. (These are so-called "habitability standards" which set minimum standards for decent, safe and sanitary living conditions.) • Meet or exceed NCHFA Energy Standards. (These are standards designed to save energy and save you money on your monthly utility bills. They also result in healthier and more comfortable homes.) • Retain no "imminent threats" to the house's "structural integrity". (This means the County will try to ensure that if you provide reasonable maintenance over the years your house should be capable of lasting at least 30 or 40 more years after rehabilitation. One good example of an imminent threat to structural integrity is a crawlspace that is too damp. In time it might promote damage to your framing through termites or fungi.) These requirements are spelled out in full in Orange County's SFR2008 Administrator's Manual which you may view, at reasonable times, upon request, at the County's office. In addition to the above items that must be done to satisfy NCHFA requirements, the scope of work may also include certain items meant to enhance or protect neighborhood and unit property values, and/or home modifications designed to enable frail or disabled household members to function more independently. Generally, Orange County will specify that rehabilitation tasks be accomplished in the least-expensive method that is deemed adequate to meet program standards. The SFR assistance cannot be used for luxury ornon-essential work. Of course, contractors performing work funded under SFR2008 are responsible for meeting all local requirements for permits and inspections. All work done under the program must be performed to NC State Residential Building Code standards. (This does not mean, however, that the whole house must be brought up to Building Code Standards.) What about lead-based paint? Until it was discovered to be a health hazard, the metal lead was used for centuries to make house paints. Now we know that eating chips or dust of lead-based paint can cause very serious problems for small children. Selling lead paint was outlawed in 1978, but many older buildings still contain lead paint and children are still being poisoned. Under SFR2008, a lead hazard evaluation will 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. In any case, it may be necessary for the household to relocate during the construction process for protection against lead contamination and possible poisoning. If relocation is required reasonable and documented relocation expenses will be covered by the SFR2008 assistance. The cost of relocation will be part of the loan associated with SFR2008 and the average cost cannot exceed $1,000 per assisted household. Who will do the work on the homes? Orange County is obligated under SFR2008 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, Orange County will invite bids only from contractors who are part of an "approved contractors' registry". To be on the registry, contractors must (1) fill out an application form, listing several references and recent jobs completed, and (2) receive the °conditional approval° of Orange County. Once a contractor who has been conditionally approved has successfully completed one job for Orange County, his or her status is upgraded to "regular approval", meaning that they will be allowed to bid on a regular rotation as long as they remain in good standing. (Homeowners who know of quality rehabilitation contractors that are not on Orange County's Approved Contractors Registry are welcome to invite them to apply.) From three to five approved contractors will be invited to bid on each job, and the lowest responsive and responsible bidder will be selected for the contract. "Responsive and responsible means the contractor (1) is deemed able to complete the work in a timely fashion, and (2) that the bid is within 15% (in either direction) of Orange County's cost estimate. In the event that more than five approved contractors wish to compete, licensed contractors will take precedence. If required, lead based paint hazard reduction and/or abatement will be performed by contractors who are trained and certified to perform such work. Orange County must take affirmative steps to recruit minority and underutilized businesses. What are the steps in the process, from application to completion? Now that you have the information about how to qualify for the2008 Single-Family Rehabilitation Program, what work can be done, and who will do it, let's go through all the major steps in the process: 1. Completing an Application form: Homeowners who wish to apply for assistance must do so by December 31, 2008. Apply by contacting the Program Administrator - Orange County Housing and Community Development Department at (919) 245-2490. Homeowners will be registered and given instructions on how to proceed with filing an application. Proof of ownership and income will be required. Application will be taken on a first come first serve basis after the December 31, 2008 deadline. 2. Other Needs Information provided by the applicant will be used to determine the financial health of the individual applying for the program. Efforts will be made to ensure that any other benefits or solutions to problems are reviewed and explained to the applicant. Should they have needs which cannot be addressed through the County; referrals will be made to organizations such as the USDA -Rural Development Office, the local Community Action Agency, DSS and Legal Services. The applicant will be informed regarding pitfalls of predatory lending so that better decisions can be made in the face of loan offers. 3. All applicants must receive a copy of the Assistance Policy. 4. Preliminary inspection: Orange County's Rehabilitation Specialist will visit the homes of potential recipients to determine the need and feasibility of the home for rehabilitation. 5. Screening of applicants: Applications will be rated and ranked by Orange County based on the priority system outlined on page 3 and the feasibility of rehabilitating the house. 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 ten (10) most qualified applicants will be chosen according to the priority system described above. There will also be a list of qualified alternates. 6. Applicant interviews: Approved applicants will be provided detailed information on assistance, lead hazards, program rehabilitation standards and the contracting procedures associated with their project at this informational interview. Before proceeding with the rehabilitation of their home, the applicant will be given seven calendar (7) days in which to decide whether to accept the loan and participate in the SFR program or not. Applicants will be encouraged to consult with family members and legal professionals in order to determine the best course of action for them. Owners who do not qualify for SFR2008 will be notified in writing within 30 days from the date of a completed application. 7. Work write-up: 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, 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. 8. Lead Testing: Orange County will arrange for a certified firm to inspect the home for potential lead hazards. The owner will receive information covering the results of the tests and any corrective actions that will be needed as part of the rehabilitation. 1 9. Formal agreement: After approval of the work write-up, the homeowner will sign a formal agreement that will explain and govern the rehabilitation process. This agreement will define the roles of the parties involved throughout the rehabilitation process. 10. Bidding: The work write-up and bid documents will be distributed to interested contractors from the Approved Contractors .Registry who attend the scheduled opportunity to inspect the property and prepare bid proposals. The names of the invited contractors will be supplied to the homeowner. Each will need access to all parts of the house in order to prepare a bid. A bid opening will be conducted at a specified date and time, with all bidders and the homeowner invited to attend. 11.Contractor selection: Within 24 hours of the bid opening, 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) the amount of Orange County's cost estimate, and (4) if other than the lowest bidder is selected, of the specific reasons for the selection. 12. Loan closing and Contract execution: Loan and contract documents will be executed, these will bind all parties and make the project official. The contract will be between the contractor and the Owner with Orange County as an interested party. Contractors must submit proof of liability insurance. 13.Pre-construction conference: Apre-construction conference will be held at the home. At this time, the homeowner, contractor and program representatives will discuss the details of the work to be done. Starting and ending dates will be 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 cabinets, etc.). Within 24 hours of the pre-construction conference, Orange County will issue a "proceed order" formally instructing the contractor to commence by the agreed-upon date. 14.Construction: The contractor will be responsible for obtaining a building permit for the project before beginning work. The permit must be posted at the house during the entire period of construction. Program staff will closely monitor the contractor during the construction period to make sure that the work is being done according to the work write-up (which is made a part of the rehabilitation contract. by reference) and in a timely fashion. Code Enforcement Officers will inspect new work for compliance with the State Building Code, as with any other job. The homeowner will be responsible for working with the contractor toward protecting personal property by clearing work areas as much as practicable. If applicable, the contractor will obtain a permit for lead hazard related activities. 15. Change Orders: All changes to the scope of work must be approved by the owner, the contractor, a County representative and the Rehabilitation Specialist, and reduced to writing as a contract amendment ("change order"). If the changes require an adjustment in the loan amount, the change must be specified in the i~ change order. Also, a modification agreement stating these changes in the contract amount must be completed by Orange County, and executed by the owner. 16. Progress payments: The contractor is entitled to request a maximum of one partial payment during construction per $8,000 of contracted amount. When a payment is requested, the Rehabilitation Specialist will inspect the work within three days, list all items deemed 100% complete, and calculate a payment based on the total contracted amount of those completed items. 17. Closeout: When the contractor declares the work complete, program staff will thoroughly inspect work. If deficiencies are observed, the contractor will be required to correct them. When the Rehabilitation Specialist and the homeowner are satisfied that the contract has been fulfilled, each will sign off and, after receipt of the contractor's final invoice, the final payment will be ordered. The contractor will submit all lien releases prior to release of the final payment. All material and workmanship will be guaranteed for cone-year period after the date of project completion. 18.Post-construction conference: Following construction the contractor and the Rehabilitation Specialist will sit down with the homeowner one last time. At this conference the contractor will hand over all owner's manuals and warranties on equipment. The contractor and Rehabilitation Specialist will go over operating and maintenance requirements for the new equipment and appliances and discuss general maintenance of the home with the homeowner. A review of any lead hazard related work will be held. The homeowner will have the opportunity to ask any final questions about work. 19. Recordation and assignment: As soon as possible after the contract has been awarded, and prior to beginning work, Orange County will execute and record the required loan note and deed of trust. If, upon completion of all rehabilitation work, the contract price has changed due to the effect of change orders, Orange County will execute and record a loan modification agreement reflecting the resulting increase or decrease in the original loan amount. The loan will then be "assigned" to NCHFA. That means that the loan will become the property of NCHFA, with original documents sent there for storage and "servicing". 20.The warranty period: It is extremely important that any problems with the work that was performed be reported to the Rehabilitation Specialist as soon as possible. All bona fide defects in materials and workmanship reported within one year of completion of construction will be corrected free of charge. What are the key dates? If, after reading this document, you feel that you qualify for this program and wish to apply, please keep the following dates in mind: • Applications available to the public starting September 3, 2008 or earlier if possible. • Applications must be turned to Orange County by 5:00 PM on November 14, 2008. 9 How do I request an application? Just contact: The Orange County Housing and Community Development Department (919) 245-2490 Or request by mail at Orange County Housing and Community Development Department 300 W. Tryon Street PO Box 8181 Hillsborough, NC 27278 Is there a procedure for dealing with complaints, disputes and appeals? Although the application process and rehabilitation guidelines are meant to be as fair as possible, Orange County realizes that there is still a chance that some applicants or participants may feel that they are not treated fairly. The following procedures are designed to provide an avenue for resolution of complaints and appeals. Durin4 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 Assistant County Manager Willie Best at (919) 245-2300 within five days of the initial decision and voice their concern. If the applicant remains dissatisfied with the decision, the detailed complaint should be put into writing. 2. A written appeal must be made within 10 business days of the initial decision on an application. 3. Orange County. Will respond in writing to any complaints or appeals within 10 business days of receiving written comments. 4. Should the applicant remains dissatisfied with the decision a conference between the applicant and the County will be held. 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. 2. The Rehabilitation Specialist will inspect the work in question. If he finds that the work is not being completed according to contract, the Rehabilitation Specialist will review the contract with the contractor and ask the contractor to remedy the problem. io ~a 3. If the Rehabilitation Specialist finds that the work is being completed according to contract, the complaint will be noted and the Rehabilitation Specialist and the homeowner will discuss the concern and the reason for the Rehabilitation Specialist's decision. 4. If the homeowner is dissatisfied a written appeal .detailing the concerns must be submitted within 10 business days for review by the County. Orange County will respond in writing to any complaints or appeals within 10 business days of receiving written comments. 5. If the homeowners concems are not satisfied, a mediation conference between the homeowner and the contractor may be convened by the Rehabilitation Specialist and facilitated by the County's Housing and Community Development Director. 6. Should the mediation conference fail to resolve the dispute, Orange County will render a written final decision. Final Appeal: After following the above procedures, any applicant or homeowner who remains dissatisfied with Orange County's final decision may appeal to Michael Handley, NCHFA, PO Box 28066, Raleigh, NC 27611-8066, (919) 877-5700. Will the personal information provided remain confidential? Yes. All information in applicant files will remain confidential. Access to the information will be provided only to County employees and County employees who are directly involved in the program, the North Carolina Housing Finance County, the US Department of Housing and Urban Development (HUD) and auditors. What about conflicts of interest? No officer, employee or other public official of the County, or member of the Governing Board, or entity contracting with the County, who exercises any functions or responsibilities with respect to the SFR program shall have any interest, direct or indirect, in any contract or subcontract for work to be performed with program funding, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter. Relatives of County employees, Governing Board Members and others closely identified with the County, may be approved for rehabilitation assistance only upon public disclosure before the Governing Board and written permission from NCHFA. What about favoritism? All activities under SFR2008, 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, creed, sex, color or national origin. ~~ 1~ Who can I contact about the SFR2008 program? Any questions regarding any part of this application or program should be addressed to: James Hutcherson Orange County P.O. Box 8181 Hillsborough, NC 27278 (919) 969-3016 David Saconn Orange County P.O. Box 8181 Hillsborough, NC 27278 (919) 245-2490 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 2008. County Manager Attest 12 Orange County i 2008 Single-Family Rehabilitation (SFR) Program PROCUREMENT POLICY To the maximum extent practical, Orange County promotes a fair, open and competitive procurement process as required under the North Carolina Housing Finance Agency's Single- Family Rehabilitation (SFR) Program. Bids are invited from Contractors who are part of the County's approved contractor registry. (To be on the registry, a contractor must complete an application, have their recent work inspected, reviewed and approved by the Rehabilitation Specialist and submit proof of insurance at the appropriate levels required by the County.) 1. Three to six eligible contractors on the County's approved contractor registry shall be invited to bid on each job and the lowest responsive and responsible bidder shall be selected for the contract. "Responsive and responsible" means (a) the contractor is deemed able to complete the work in a timely fashion, (b) the bid is within 15%, in either direction, of the County's cost estimate, and (c) there is no conflict of interest (real or apparent). 2. Although bid packages may be bundled for multiple job sites, the bids for multiple job sites shall be considered separate and apart when awarded and shall be awarded to the lowest responsive and responsible bidder(s) for each job site. 3. Bid packages shall consist of an .invitation to bid, work write up(s) and Non-Collusive Affidavit form (s) for each job. 4. Bids must include acost-per-item breakdown with line item totals equaling the submitted bid price. Discrepancies must be reconciled prior to a contract being awarded. 5. Any change to the original scope of work must be reduced to writing in the form of a change order to be agreed upon and signed by all parties to the original contract. The change order must also detail any changes to the original contract price. 6. No work may begin prior to a contract being awarded and a written order to proceed provided to the contractor. In addition, apre-construction conference and "walk thru" shall be held at the work site prior to commencement of repair work. 7. Orange County reserves the right to reject any or all bids at any time during the procurement process. 8. In the event of a true emergency situation, the County reserves the right to waive normal procurement procedures in favor of more expedient methods, which may include seeking telephone quotes, faxed bids and the like. Should such methods ever become necessary the transaction will be fully documented. 9. All sealed bids will be opened publicly at a time and place to be announced in the bid invitation. All bidders are welcome to attend. This Procurement Policy is adopted this the day of 20 Orange County `~ 2008 Single-Family Rehabilitation (SFR) Program DISBURSEMENT POLICY 1. All repair work must be inspected by (a) the County's Rehabilitation Specialist, (b) a Building Code Officer if necessary, and (c) the homeowner prior to any payments to contractors. If all work is deemed satisfactory and all other factors and written agreements are in order, payment shall be issued upon presentation of an original invoice from the contractor. Contractor should allow 15 business days for processing of the invoice for payment. 2. If any of the work is deemed unsatisfactory, it must be corrected prior to authorization of payment. If the .contractor fails to correct the work to the satisfaction of the County's Rehabilitation Specialist, payment may be withheld until such time the work is satisfactory. (Contractors may follow the County's Single Family Rehabilitation Program Assistance Policy if a dispute occurs; however, contractors shall abide by the final decision as stated in the policy). 3. Orange County assures, through this policy, that adequate funds shall be available to pay the contractor for satisfactory work. 4. All contractors, sub-contractors and suppliers must sign a lien waiver prior to final disbursement of funds. This Disbursement Policy is adopted this the day of 20