HomeMy WebLinkAboutResolutions - 1983.06.09 - 11566Miscellaneous Resolution 83156 June 9, 1983
BY: PUBLIC SERVICES COMMITTEE
IN RE: COMMUNITY DEVELOPMENT DIVISION - COUNTY OF OAKLAND/MICHIGAN STATE
HOUSING DEVELOPMENT AUTHORITY MODERATE RENTAL REHABILITATION PROGRAM
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS the Community Development Division has operated a Home Improvement
Program for housing rehabilitation since 1976 in order to maintain and improve
our residential neighborhoods; and
WHEREAS the objective of the Home Improvement Program is to improve the
housing stock for low and moderate income persons; and
WHEREAS an analysis of housing needs indicates that 11 percent of the total
number of rental occupied housing units are occupied by low and moderate income
persons and in need of home improvement repairs; and
WHEREAS in Miscellaneous Resolution #82283 approved by the Board of Commissioners
on September 21, 1982 gave the Community Development Division authorization to
develop a rental rehabilitation program and guidelines; and
WHEREAS the Michigan State Housing Development Authority (MSHDA) has invited
Oakland County to participate in the pilot Moderate Rental Rehabilitation Program;
and
WHEREAS participation in the pilot MSHDA Moderate Rental Rehabilitation
Program allows maximum flexibility for Oakland County participation with the
financial and organizational flexibility to suit the County's needs; and
WHEREAS the Community Development Division has prepared recommended pro-
cedures for a pilot program as outlined in Attachment A; and
WHEREAS the Community Development Division has allocated $210,000 from the
1982-83 Community Development Block Grant budget for implementation of a pilot
rental rehabilitation program with no funds utilized from the County General Fund;
and
WHEREAS this Program will be a pilot program available to all 48 participating
communities for a six (6) month period; and
WHEREAS the Community Development Division will evaluate the pilot program
during the six (6) months and provide status reports to the Public Services
Committee in September and December, 1983.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners
authorize the Community Development Division to participate in the Michigan
State Housing Development Authority Moderate Rental Rehabilitation Program to
accomplish: the rehabilitation of 1 to 7 unit rental structures in accord with
specific procedures as outlined in Attachment A.
NOW THEREFORE BE IT FURTHER RESOLVED that the Division be required to provide
the Public Services Committee status reports in September and December, 1983.
Mr. Chairperson, on behalf of the Public Services Committee, I hereby move
the adoption of the foregoing resolution.
PUBLIC SERVICES COMMITTEE
County of Oakland
Michigan State Housing Development Authority
.Moderate Rental Rehabilitation Program
"Attachment A"
Introduct ion
The Community Development Division has developed the following procedures at
the direction of the Oakland County Board of Commissioners, as authorized in
Miscellaneous Resolution #82283, September 24, 1982.
On April 28, 1983 the Michigan State Housing Development Authority Board of
Directors authorized a phase of the Moderate Rehabilitation Pilot Program for
the remainder of 1983. The objective of this program is to provide low interest
loans to upgrade existing rental housing. 'Moderate" rehabilitation as defined
means rehabilitation beyond cosmetic improvements, but not as far as a complete
structural rebuilding. This may include improvements to bring buildings up to
local building codes, repair or replacement of major mechanical systems and
energy improvements.
Background for Participation in Pilot Program
The need for provision of financing these types of improvements to rental housing
has been indicated by numerous data sources, 'Census data (1980) and information
provided by the Southeast Michigan Council of Governments (SEMCOG) indicate:
1. There are forty-eight (48) participating communities in the Oakland County
CDBG Program. Twenty-one (21) percent of the housing stock within these
communities is renter occupied.
2. A substantial number (4,977 or 11 percent of the total number of renter
occupied units), of units are in need of rehabilitation.
By providing financing for the improvement of rental housing, the County will
act consistently with Federal level priorities, i.e. the recent emphasis on
rehabilitation of existing housing units as opposed to new construction.
The Department of Housing and Urban Development has maintained that of the 30
million rental units in the nation, two million are seriously deficient and
another four million have significant inadequacies. Continuing deterioration
of rental units accelerates the decline of neighborhoods.
The expansion of the MSHDA Pilot Program pursues the goal of providing reasonable
financing for the upgrading of rental housing units generally serving low and
moderate income tenants. With Wayne, Ingham and Oakland Counties as target
recipients, the program offers the opportunity to utilize maximum flexibility
in addressing local housing needs.
Oakland County Procedures - Eligible Structures
Buildings to be rehabilitated must be residential and not mixed use with one
or more units. Vacant ,buildings are eligible. Structures can be located in
any community participating in the Urban County Community Development Block
Grant Program.
Application Processing
The Community Development Division will accept applications and refer them to
MSHDA for analysis. The following verifications will be obtained:
1. Application
2. Verification of Assets and Liabilities
3. Annual Income and Expenses
4. Credit Report
5. Title Search (1-4 units) or Title Insurance Commitment (5+ units)
6. Federal Income Tax returns - previous two years
Eligible Improvements and Inspections
The Community Development Division will assist by making property inspections,
writing specifications and administering bidding and contractor selection. After
rehabilitation, properties must meet MSHDA Housing Quality Standards for Existing
Housing (attached) including energy conservation standards. After these stand-
ards are addressed, general (optional) improvements are eligible.
Terms of Loans
MSHDA will provide financing at a 10 percent interest rate. The Community
Development Division will participate in funding certain loans by offering a
Small Property (1-7 units) Rehabilitation Incentive.
All loans will be secured by mortgages with maximum terms of 15 years.
Loans will be made for properties on which the ratio of total debt (including -
rehabilitation financing) to the post-rehabilitation appraised value of the
property is less than 80%. An appraisal will be conducted by MSHDA. on each
property.
Small Property Rehabilitation Incentive Procedures
To encourage the rehabilitation of small rental properties, participation loans
will be made with community development funds allocated to rental rehabilitation.
Properties eligible must have seven or less units. The incentive will be offered
as follows:
MSHDA Loan = 60% of construction costs
OCCD Loan = 40% of construction costs
MSHDA Loan - 10% interest rate, 15 year term
OCCD Loan - 0% interest rate, deferred
Net rate = 6%
In utilizing a $210,000 allocation of CDEG funds for this purpose, $325,000
in loans for the rehabilitation of small properties can be made.
Property owners will be eligible for only one loan receiving an incentive during
the Pilot Program. While MSHDA criteria remains in effect for all loan recipients,
property owners demonstrating the greatest need will receive the highest priority
for the Small Property Rehabilitation Incentive.
Anti-Displacement Strategy - Rent Regulations
To prevent the costs of rehabilitation from being passed as rent burdens to
tenants, property owners will certify existing and after-rehabilitation rents
to MSHDA, which will approve rent levels before loans are approved. A one-year
certification of rent levels will be obtained from property owners.
MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY
Moderate Rehabilitation Pilot Program
HOUSING QUALITY STANDARDS FOR EXISTING HOUSING
All structures must meet the local governing architectural, plumbing,
mechanical, electrical, and health and life safety standards for-existing
housing.
In addition to local housing requirements the following basic standards
must also be included. Should local standards and MSHDA standards conflict,
the most stringent standard shall prevail. Each unit must contain specific
designated areas for bathroom facilities, kitchen facilities, living and
sleeping.
SITE: 1. Existing hard surface drive and walkways must be
repaired or replaced where deteriorated to an unsafe
condition.
2. Grade must slope away froM structures.
ARCHITECTURAL: I. Envelope of structure (i.e., roof, exterior walls,
windows and doors and foundation) must be in a weather
tight, dry and safe condition. Where gutters and down-
spouts are existing they must be in good condition,
properly functioning, repaired to acceptable condition
or replaced with new gutters and downspouts.
2. All structural members must be in a safe and sound.
condition.
3. Kitchen and bathroom floors must be covered with non-
absorbent material.
4. must have space to store food, a food prepara-
tion and serving area adequate space and utility
services for stove (range and oven) and refrigerator.
5. All interior ceilings, walls and floors in habitable
rooms, kitchens and bathrooms must be sound and safe
with adequate finishes.
6. Two approved means of egress from each structure or a
fire plan approved by the local fire marshall must be
provided.
7. All windows and doors which are accessible from the
outside must have operable locks or be secured.
8. Minimum ceiling height in habitable rooms shall be
6J-10".
PLUMBING: Each living unit must contain a bathroom containing
a water closet, bathtub and/or shower and a sink all
within the same room.
2. All plumbing fixtures must have adequate hot and cold
running water except water closets which need cold water
- only. A minimum of 105°F must be provided as hot water.
3. All plumbing fixtures must be connected to an operable
and adequate sanitary sewer system with adequate venting.
4. Each living unit must contain kitchen facilities which
include a kitchen sink.
5. All existing plumbing fixtures must be safe and sanitary
with appropriate faucets, valves and handles.
MECHANICAL: 1. Each living unit shall be provided with an approved,
acceptable and safe heating system.
2. Each habitable room within a living unit shall be capable
of maintaining at least 70°F air temperature at a point
• 3 1 -0" above the floor in the winter months.
3. Each habitable room shall be provided with a minimum of
10% natural light and 5% ventilation of total room square
footage area. Bathrooms may be provided with mechanical
means for required light and ventilation in lieu of
natural light and ventilation.
ELECTRICAL: 1. Each living unit shall be provided with an electrical
service of adequate size, and amount of circuits to
properly handle existing electrical demands.
2. Each habitable room shall contain at least two duplex
electrical outlets.
3. Each kitchen and bathroom shall contain at least one
duplex outlet, in addition to appliance outlets, and
one wall switched permanently mounted light fixture.
4. All electrical wiring shall be safe and of adequate
size to handle intended loads.
5. All existing electrical fixtures (i.e., switches, outlets,
light fixtures, etc.) shall be safe, operable and provided
with adequate cover plates.
6. All means of egress shall have adequate means of lighting.
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HEALTH & 1. Provide pest and/or vermin control as needed.
SAFETY:
2. Trash and garbage must be removed from site. Appropriate
containers and/or storage areas must be provided.
3. Installation of smoke detectors separating sleeping areas
from the remainder of the unit.
4. Installation of concrete floors in cellars and basements.
The following energy conservation items must also be included as part of the
Housing Quality Standards. Depending on the existing physical characteristics
of the building, some items may not be required.
ENERGY
CONSERVATION: I. Install minimum of R-30 insulation in attic areas where
physically possible. Attic ventilation shall be added
where required.
2. Install aluminum combination storm and screen windows
or approvedequal,where appropriate.
3. Install aluminum combination storm and screen doors
or approved equal, where appropriate.
4. Insulate floors in unheated crawl spaces to minimum R-11.
5. Adequate insulation of water heaters must be provided.
6. Insulate supply ducts to minimum R-4 and/or hot water
heating system supply and return piping to R-8 in
unconditioned spaces.
7. Insulate rim joists in basement to minimum R-11.
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All rehabilitated properties must meet the minimum MSHDA Housing Quality
Standards for the Moderate Rehabilitation Pilot Program. Once these
standards are met, the following basic improvements may be provided and
are encouraged. While other improvements can be funded, MSHDA reserves
the right to reject any proposal which does not reflect these program
priorities.
OPTIONAL
IMPROVEMENTS: 1. Installation of new roofing materials.
2. Installation of new siding or other approved exterior
material.
3. Exterior painting.
4. Hard surfacing of driveways and/or walkways.
5. Interior painting or resurfacing of walls and ceilings.
6. Installation of new floor materials.
7. Replacement of old non-efficient heating systems.
8. Replace existing or install new kitchen and bath
plumbing fixtures with water conserving type fixtures.
9. Replace existing or install new kitchen cabinets and
countertops.
10. Install insulation in exterior walls.
11. Install landscaping to prevent soil erosion.
12. Replacement of existing or installation of new fencing.
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ALLEN, County Clerk/Register of Dee
83 156
Moved by Lanni supported by Calandro the resolution be adopted.
Moved by Moore supported by Lanni the resolution be amended not to
allow absentee landlords loans at zero (0%) percent interest, but they be
allowed to borrow at six (6%) percent interest.
Discussion followed.
Vote on amendment:
A sufficient majority not having voted therefor, the amendment failed.
Moved by Moore supported by Lanni the resolution be amended by striking
the last WHEREAS paragraph.
Discussion followed.
Vote on amendment:
A sufficient majority not having voted therefor, the amendment failed.
Moved by Price supported by Foley the resolution be amended under attach-
ment "A" - Anti-Displacement Strategy-Rent Regulations paragraph by striking "one-
year" and insert "two-years".
A sufficient majority not having voted therefor, the amendment failed.
Moved by Price supported by Doyon the resolution be amended to state that
one year after completion of the Project, they will be provided for by these dollars.
AYES: Doyon, Foley, Fortino, Lanni, McPherson, Moore, Olsen, Perinoff,
Pernick, Price, Aaron. (11)
NAYS: Calandra, Gosling, Hobart, Jackson, R. Kuhn, S. Kuhn, Law, McConnell,
McDonald, Moffitt, Nelson, Page, ReWold, Wilcox, Caddell. (15)
A sufficient majority not having voted therefor, the amendment failed.
Vote on resolution:-
AYES: Doyon, Jackson, R. Kuhn, S. Kuhn, Law, McConnell, McDonald, McPherson,
Moffitt, Nelson, Olsen, Page, Perinoff, Pernick, Price, Rewold, Wilcox, Aaron,
Caddell, Calandro. (20)
NAYS: Fortino, Gosling, Lanni, Moore, Foley. (5)
ABSTAIN: Hobart. (1)
A sufficient majority having voted therefor, the resolution was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
1, Lynn D. Allen, Clerk of the County of Oakland and having a seal,
do hereby certify that I have compared the annexed copy of
Miscellaneous Resolution 11 83156 adopted by the Oakland County Board of Commissioners
at their meeting held on June 10, 1983
with the original record thereof now remaining in my office, and
that it is a true and correct transcript therefrom, and of the
whole thereof,
In Testimony Whereof, I have hereunto set my hand and affixed the
seal of said County at Pontiac, Michigan
this 10th