CITY OF HICKORY HOUSING REHABILITATION LOAN PROGRAM

CITY OF HICKORYHOUSING REHABILITATION LOAN PROGRAM1.0 INTRODUCTIONHousing rehabilitation is a term applied to the repair and improvement of homes that have fallen into asubstandard condition. The principle goals of housing rehabilitation are the conservation of existinghousing and the preservation of good neighborhoods. The City of Hickory's Housing RehabilitationProgram is designed to assist in accomplishing these goals by providing low­interest loans at 3.0% tohomeowners in residential areas characterized by concentrations of lower income families anddeteriorating housing conditions and to fulfill the following objectives:1.1 Assist very low, low and moderate income homeowners in target areas who would otherwise beunable to undertake home repairs without financial assistance.1.2 Stabilize older residential areas by providing limited financial assistance to moderate incomehomeowners in target areas in order to prevent deterioration of property.1.3 Eliminate housing conditions which are detrimental to public health, safety and welfare.1.4 Conserve the community's housing stock in order to meet the needs of the City's very low, lowand moderate income families.1.5 Conserve energy through the availability of funds for energy improvements undertaken as a partof rehabilitation.1.6 Improve neighborhood appearance through the application of property eligibility guidelines andthe availability of funds to improve the exterior appearance of homes rehabilitated for lowerincome families.1.7 Reduce the City's role in the rehabilitation process by simplifying application procedures andproviding owners with the opportunity to contract directly for repairs.2.0 APPLICANT ELIGIBILITY2.1 No member of the City Council of the City of Hickory and no other official, employee, or agentof the City who exercises policy, decision­making functions or responsibilities in connectionwith the planning and implementation of the CDBG program shall directly or indirectly beeligible for this program. This prohibition shall continue for one year after an individual'srelationship with the City of Hickory ends.2.2 Recipients of housing rehabilitation loans must be the owner of record and occupant of a homein a designated housing rehabilitation area.2.3 Recipients of housing rehabilitation loans must be current in all their accounts with the City ofHickory.2.4 Priority will be given to very low, low, and moderate income applicants. Not less than 80% offunds will go to low and moderate income applicants. Applicants in an Historic Area will beeligible with no income limits and at 3.0% interest rates, however, repairs are limited to those whichare directed to preservation of the historic structure. The State Historic Preservation Officer andlocal historic preservation officials should be consulted for guidance on which activities constitute

2preservation. Both lower income and moderate income applicants shall be eligible to receiveHousing Rehabilitation Loan Assistance at 3% interest according to the following schedule:Number in Very Low Income Low IncomeHousehold (50% of Median) (80% of Median)1 $ 18,050 $18,051– 28,8502 20,600 20,601 – 32,9503 23,200 23,201 – 37,1004 25,750 25,751 – 41,2005 27,800 27,801 – 44,5006 29,850 29,851 – 47,8007 31,950 31,951 – 51,1008+ 34,000 34,001 – 54,400Revised 2/08/02This income schedule is based upon the income limits established by the U.S. Department of Housing and UrbanDevelopment on March 1, 1984 for the Section 8 Housing Assistance Payments Program and shall be updatedperiodically upon notification of revisions by the U.S. Department of Housing and Urban Development.3.0 PROPERTY ELIGIBILITY3.1 Only owner occupied units in one to four family dwellings are eligible for rehabilitationassistance. Units of a two to four family dwelling are eligible only if one is an owner occupiedunit and the others are occupied by a member(s) of the owner’s family, and assistance shall beprovided only to the extent that the other units are also income eligible. Units not occupied bymembers of the owner’s family shall not be eligible for assistance, but must be brought up intocompliance with all code standards as an eligibility requirement for assistance to the owneroccupant.3.2 Units must be located in a residentially zoned area within the City of Hickory. Residentiallyzoned property means land zoned in the R­1, R­2, R­3, R­4, R­5, R­6, O & I­1 or O & I­2categories on the Official Zoning Map of the City of Hickory.3.3 Eligible properties must be free of all nuisances as defined in Chapter 20 of the Hickory CityCode or any such nuisance conditions must be corrected by the homeowner prior to acceptanceof an application for housing rehabilitation assistance.3.4 Eligible properties must be in violation of the City's Minimum Housing Standards as defined byChapter 15 of the Hickory City Code.3.5 Eligible properties must be economically feasible to rehabilitate. To be consideredeconomically feasible to rehabilitate it must be possible to bring the dwelling into compliancewith the Minimum Housing, Section 8 and HUD energy efficiency standards with the fundsavailable under the housing rehabilitation program in combination with any owner suppliedfunds.3.6 Eligible properties must not be located in the right­of­way of any planned public improvements.3.7 Eligible properties must have all taxes and assessments paid up to date prior to acceptance of anapplication for housing rehabilitation assistance.3.8 Eligible properties must be located on a site that is not endangered by mudslides, landslides orother environmental hazards.3.9 Eligible properties located in flood hazard areas must be covered under the National FloodInsurance Program.

33.10 Manufactured housing shall be eligible for assistance only if any wheels, axles and trailertongues are removed and the owner provides evidence that the unit is being treated as realproperty by the Catawba County Tax Office.4.0 ELIGIBLE ACTIVITIES4.1 The expenditure of housing rehabilitation funds will be limited to those repairs andimprovements required to provide standard, readily maintainable and reasonably attractivehousing units. The activities considered necessary and suitable to achieve this objective arethose required to meet the Minimum Housing Code. The HUD Section 8 Existing HousingQuality Standards and the HUD Energy Efficiency Standards.4.2 In general, allowable expenditures will be authorized according to the following priorities:.1 Elimination of conditions that, in the judgement of the Rehabilitation Specialist, (BuildingInspector), are hazardous to the health and safety of the dwelling's occupants. These itemsinclude, but are not limited to:­ Repair or replacement of water and sewerage systems and their components;­ Repair or replacement of heating systems and their components;­ Repair or replacement of electrical systems and their components;­ Replacement of defective plumbing, including sinks, tubs and toilet facilities;­ Eradication of all serious insect or rodent infestations;­ Correction of insufficient exit ways;­ Correction of insufficient ventilation in order to prevent deterioration caused by chronicdampness;­ Eradication of lead paint hazards where chipping or peeling exists;­ Repair of all seriously deteriorated walls, ceilings and floors;­ Repair or replacement of structurally defective porches, roofs, gutters, chimneys, andfoundations;­ Repair of exterior walls and windows in order the dwelling may be kept watertight andfree from chronic dampness;­ Repair of walkways and steps;­ Special facilities for the handicapped;­ Smoke detectors..2 In addition to correcting basic code violations, housing rehabilitation funds will be used to bringabout compliance with HUD Energy Efficiency Standards by caulking, weatherstripping and theaddition of attic insulation..3 Correction of incipient housing code violations. An incipient violation is a condition which will,in the opinion of the Rehabilitation Specialist, (Building Inspector), deteriorate to an actualviolation within two (2) years..4 Additional energy efficiency related items including, but not limited to:­ Heating system tune up; ­ Storm windows;­ Floor insulation; ­ Fireplace and flue dampers;­ Clock thermostats; ­ Heat duct insulation;­ Pipe and water heater insulation..5 Exterior painting and aluminum or vinyl siding are allowable expenditures.4.3 Moderate income applicants cannot receive funds for General Property Improvements.

6work.6.8 All Change Orders to the bid specifications must be approved by both the homeowner and theCity of Hickory. Loan funds shall not be advanced beyond the permitted maximum to coverchange orders.6.9 In the event of any dispute between the homeowner and the contractor concerning therehabilitation work, the City Rehabilitation Officer will work with both parties to negotiate asatisfactory solution. If a mutually satisfactory solution cannot be found, the Citizens’Advisory Committee will have final authority on when the job has been satisfactorilycompleted.7.0 APPLICANT SELECTION7.1 Applications for housing rehabilitation loans will be accepted periodically during specified timeframes. Application periods shall be published in the local newspaper, made known throughprogram brochures, press releases, and announcements posted in public places such as theMunicipal Building and Recreation Centers in eligible neighborhoods.7.2 Applications shall consist of three parts:­ Application for determination of eligibility­ Housing inspection report­ Work write­up and cost estimate7.3 All applications received during an open application period will be reviewed together andprioritized according to:.1 The order in which they are received,.2 Categorized according to income range requirements.7.4 Applicants shall be responsible for providing all documentation required to determine programeligibility.7.5 Complaints concerning the housing rehabilitation loan program shall be in writing andaddressed to the City’s Housing Rehabilitation Specialist. This individual will contact theperson making the complaint and attempt to resolve the problem. A written response will bemade within 15 working days. If the complaining party is not satisfied with the response, he orshe may file a complaint with the Citizens’ Advisory Committee who will schedule a meetingwith the complaining party. The decision of the Committee shall be final and will be made inwriting within 5 days.8.0 CONFIDENTIALITY OF RECORDS8.1 All applicant files shall be confidential with access to them solely by program staff, theapplicant, City Auditors, the North Carolina Housing Finance Agency and the U.S. Departmentof Housing and Urban Development. Statistical and profile information may be published, withno references to name or address as necessary.