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HOUSING REHABILITATION PROGRAM DESCRIPTION AND APPLICATION Financed with Community Development Block Grant (CDBG) and HOME funds made available to the City of Kennewick through the U.S. Department of Housing and Urban Development 210 W. 6th Avenue/P.O. Box 6108, Kennewick, WA 99336 (509) 585-4431/FAX 585-4445 KENNEWICK HOUSING REHABILITATION PROGRAM “REHABILITATE” means to restore to good condition, not necessarily to improve to a state significantly different than the original. The Rehab Program provides 0% deferred payment loans to low and moderate-income owner-occupants in order to make needed repairs to their homes. Program funds are available through the resources of the United States Department of Housing and Urban Development Community Development Block Grant (CDBG) and HOME Programs. Loans are made available to all applicants within the City of Kennewick with incomes below the limits established by HUD (80% of median) who are purchasing or own the home in which they are living. Income eligibility is calculated according to family size and annual income as projected for the twelve months following the contract date. Federal Income Tax forms are used as the basis of income. Payments are deferred until a transfer of ownership occurs or if home is no longer the homeowner's primary residence. A loan may be repaid in part or in full at any time without penalty. A deed of trust will be recorded on each property for the amount of the loan. The maximum limit for a standard rehab loan is $25,000; the maximum limit for an emergency/repair loan is $12,500. The minimum loan amount is $1,000. STANDARD REHAB LOAN: In a standard rehabilitation project, any defective minimum conditions as listed above must be addressed. Any remaining loan funds up to the maximum amount approved for the borrower can be utilized by the homeowner to complete needed modernization work. INELIGIBLE REHAB WORK: Non-essential or luxury improvements such as area rugs, furniture, fencing, garages, and non-essential appliances are ineligible for financing through the rehab loan program. Work to be done as a cosmetic improvement only is not eligible. EMERGENCY REPAIR LOANS: The emergency repair loan will be a supplemental home repair financing tool for homeowners who need immediate assistance to correct a single major health and safety hazard (e.g., no heat, roof leaking, major structural failures, sewer connection, etc.). Homeowners are responsible for soliciting bids from three contractors to correct the problem. ELIGIBLE PROPERTIES: The dwelling must be a single-family residence, in a residential zone located within the city limits of Kennewick. It must be owner occupied. The dwelling must fail to meet the minimum conditions of the City’s Rehabilitation Standards, but must be capable of meeting those standards within the loan limitations of the Program. INELIGIBLE PROPERTIES: Indications of poor maintenance not primarily attributable to the low income status of the homeowner or a physical inability to properly maintain the home or site; evidence of unsanitary conditions or severe damage to floors or furnishings caused by neglect; and illegal or improper use of the property when such use constitutes a health or safety hazard or is a visual detriment to the neighborhood. Properties with total loan to value ratios that exceed 100% including the rehabilitation loan are ineligible. Properties which are economically not feasible to rehabilitate may be denied. THE PROCESS APPLICATION: The applicant completes an application form including information regarding the property to be assisted and income. Property ownership, income, and credit information will be verified. INTERVIEW: Once the applicant’s name comes to the top of the waiting list, an appointment is made to interview the applicant for preliminary eligibility. The applicant will authorize title search, credit report, employment, or income verification and mortgage verification. Program requirements will be discussed and, if the project appears feasible, a time will be established to inspect the property. INSPECTION: The existing housing conditions are examined to determine whether the house will be able to meet minimum conditions of the rehabilitation standards and what items would be required to be addressed. A list of modernization items which the owner would like to include is also collected, a photograph is taken of the exterior, and a preliminary environmental review is addressed including historical significance. If constructed prior to 1978, a lead-based paint risk assessment may be required. A work write-up is prepared and sent to the homeowner for review. CONTRACTOR BID: The owner, contractors and staff representatives attend the walk-through. Each contractor submits a bid, bids are compiled, compared and forwarded to the homeowner for review. The homeowner does not have to select the low bidding contractor if there is some compelling reason for not doing so, but the bid must be reasonable compared to the current market. The contract is between the homeowner and the contractor. The City acts as financing agent. LOAN CLOSING: An appointment time is set to sign the loan documents. Loan documents normally consist of the disclosure statement, opportunity to rescind, promissory note, deed of trust, contract agreement, notice to proceed, and lead paint hazard notification. The deed of trust will be sent to the County for recording. Title fees, recording fees, and a contingency can be included in the loan amount. Unused funds will be applied to the loan balance at the end of the construction work. PRE-CONSTRUCTION CONFERENCE: The homeowner and contractor meet in a pre-construction conference to discuss the project again and resolve any questions regarding the work. The contractor signs the contract, notice to proceed and arranges a work schedule with the owner. REHAB INSPECTIONS: Progress inspections will be made by the Staff during the course of construction. The homeowner, the building inspector and Staff must approve any release of payment to the contractor. However, if at final inspection all work has been completed according to the contract and approved by the Building Official, the homeowner cannot withhold payment. Quality of workmanship disputes will be resolved between the homeowner and Contractor. No change in the amount of the contract, schedule of completion or in the work description will be made without a written, signed change order. The contractor must provide a detailed list of suppliers, sub-contractors and lien waivers prior to disbursement of the final payment. LOAN CLOSEOUT: After rehab work is complete, Staff will prepare a disposition of funds statement. Any undisbursed loan funds must be used to reduce the outstanding principal of the loan. LOAN PAYOFF: The payoff amount will be the amount of the contract (plus change orders) plus the cost of the title insurance policy and recording fees. Payment will be made directly to the City of Kennewick. After payment is received, the canceled note and reconveyed deed of trust will be sent to the paying agent for processing. APPEALS: Determinations made by Staff may be appealed, in writing, by any aggrieved person within ten (10) days after the occurrence. The appeal must clearly state the reasons for the appeal. The appeal will be filed with the Block Grant Coordinator who will review the appeal and respond. If the appellant is not satisfied with that response, the appeal may be presented to the Block Grant Advisory Committee within thirty (30) days of the Coordinator's response. The Committee will attempt to resolve the grievance with fifteen (15) days. The ruling of the Committee will be final. HOUSING REHABILITATION PROGRAM MAILING ADDRESS: PO BOX 6108, KENNEWICK, WA 99336 (509) 585-4431 – FAX 585-4445 FORMAL APPLICATION DATE: NAME: MARRIED ADDRESS: PHONE (Home): NUMBER OF FAMILY MEMBERS: ETHNICITY (select only one): RACE(S): Hispanic or Latino American Indian/Alaskan Native Native Hawaiian/Pacific Islander (Work): AGES OF DEPENDENTS: Not Hispanic or Latino Asian White SINGLE SEPARATED 2004 HUD INCOME LIMIT GUIDELINES 1 PERSON - $34,650 2 PEOPLE - $39,600 3 PEOPLE - $44,550 4 PEOPLE - $49,500 5 PEOPLE - $53,500 6 PEOPLE - $57,450 7 PEOPLE - $61,400 8 PEOPLE - $65,350 SPOUSE’S NAME: ________________________________ DIVORCED SINGLE HEAD OF HOUSEHOLD? YES NO Black/African American TYPE OF REHAB WORK NEEDED: YEAR HOME WAS BUILT: (Call the County Assessor at 735-2394) YES IS THIS AN EMERGENCY? (leaking roof, no heat, septic system failure, etc.) Explain: I N C O M E (ALL HOUSEHOLD MEMBERS OVER 18 YEARS OF AGE) APPLICANT AGE: (for survey purposes) SOCIAL SECURITY NUMBER: EMPLOYER: EMPLOYER ADDRESS: ANNUAL GROSS WAGES: SOCIAL SECURITY INCOME: SUPPLEMENTAL S.S.I. OTHER FAMILY INCOME: (PENSIONS, CHILD SUPPORT, ALIMONY, RENTAL PROPERTY, INVESTMENTS, SEASONAL EMPLOYMENT, ETC.) SPOUSE TOTAL ANNUAL INCOME: $ $ TOTAL ANNUAL GROSS FAMILY INCOME: $ ATTACH CURRENT TAX RETURN, PAYSTUB & PROOF OF INCOME (SOCIAL SECURITY STATEMENT, W-2, ETC.) ASSETS NAME & ADDRESS OF BANK: CHECKING _____ SAVINGS _____ IRA _____ BONDS _____ MONEY MARKET ACCT _____ OTHER REAL ESTATE OWNED?: OTHER ASSETS (MOTORHOME, BOAT): TOTAL ASSETS: $_____________________________ MORTGAGE INFORMATION DATE OF HOME PURCHASE: PRESENT MORTGAGE BALANCE: $ PURCHASE PRICE $ ASSESSED VALUE: $ NOTE: SUBTRACTING MORTGAGES AND/OR LIENS FROM THE VALUE OF THE PROPERTY DETERMINES OUR MAXIMUM LOAN AMOUNT. NAME AND ADDRESS OF MORTGAGE HOLDER: ACCOUNT # ARE PAYMENTS CURRENT? IF YES, AMOUNT(S) ARE THERE ANY JUDGEMENTS OR LIENS AGAINST THE PROPERTY? HOMEOWNERS INSURANCE COMPANY (ATTACH COPY): AGENT NAME AND PHONE: POLICY # COVERAGE $ MONTHLY PAYMENT: $ ARE TAXES CURRENT? ARE THERE ANY OTHER LIENS (2ND MORTGAGE, HOME EQUITY LOANS)? NOTE: TAXES, INSURANCE AND HOUSE PAYMENTS MUST BE PAID UP TO DATE, BEFORE THE LOAN CAN BE PROCESSED. THE PROGRAM WILL NOT PAY FOR ANY TAXES, INSURANCE OR HOUSE PAYMENTS. ANY AND ALL LIENS, EXCEPT FOR MORTGAGE, AGAINST THE PROPERTY MUST BE SATISFIED BEFORE A LOAN CAN BE PROCESSED. I CERTIFY THAT THE PROPERTY LOCATED AT ___________________________________________________ IS MY PRINCIPAL RESIDENCE. I AGREE TO NOTIFY THE CITY OF KENNEWICK BLOCK GRANT DEPARTMENT OF ANY CHANGE TO THIS STATUS. I AGREE TO MAINTAIN FIRE INSURANCE (AND FLOOD INSURANCE, IF APPLICABLE) IN AN AMOUNT AT LEAST EQUAL TO THE LOAN AMOUNT FOR REHAB WORK DONE ON THE PROPERTY, AND TO NAME THE CITY OF KENNEWICK HOUSING REHABILITATION PROGRAM AS LOSS PAYEE FOR THAT AMOUNT. I UNDERSTAND THAT THE INFORMATION REPORTED IN THIS DECLARATION WILL BE USED TO DETERMINE MY ELIGIBILITY FOR A LOAN TO IMPROVE MY HOME. I DECLARE UNDER PENALTY OF LAW THAT THE INFORMATION GIVEN BY ME IN THIS APPLICATION IS CORRECT AND COMPLETE TO THE BEST OF MY KNOWLEDGE, AND REALIZE THAT WILLFUL FALSIFICATION BY ME MAY SUBJECT ME TO PENALTIES AS PROVIDED IN WASHINGTON STATE LAW, RCW 74.08.055. I ALSO UNDERSTAND THAT A TITLE SEARCH WILL BE ORDERED ON THE PROPERTY AND A CREDIT BUREAU REPORT MAY BE REQUESTED ON ANY PERSON RESIDING AT THE PROPERTY OR LISTED ON THE TITLE.. I UNDERSTAND THAT I AM REQUIRED TO SUBMIT MY HOME TO AN INSPECTION TO DETERMINE WHAT REPAIR IS NEEDED. IT IS UNDERSTOOD AND AGREED THAT IF MY PROPERTY IS DETERMINED TO BE ELIGIBLE FOR THE PROGRAM, I WILL LOOK ONLY TO THE CONTRACTOR, AND NOT THE CITY OF KENNEWICK FOR PERFORMANCE OF THE IMPROVEMENTS UNDER THE CONTRACT(S). THE UNDERSIGNED APPLICANT HEREBY WAIVES ANY AND ALL CLAIMS AGAINST THE CITY OF KENNEWICK OR IT'S AGENT FOR ANY ALLEGEDLY DEFECTIVE, INCOMPLETE OR OTHERWISE UNSATISFACTORY IMPROVEMENT, WORK OR MATERIALS. SIGNATURE OF APPLICANT(S): DATE: DOCUMENTATION Tax return and current pay stub attached? Proof of insurance? Inside City limits?
"APPLICATION - City of Kennewick"