HomeMy WebLinkAboutResolutions - 1990.08.30 - 18164MISCELLANEOUS RESOLUTION 90201 DATE August 30, 1990
BY: PUBLIC SERVICES COMMITTEE, RICHARD D. KUHN, JR., CHAIRPERSON
IN RE: COMMUNITY DEVELOPMENT DIVISION - HOME IMPROVEMENT PROGRAM GUIDELINE
CHANGES
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Mr. Chairperson, Ladies, and Gentlemen:
WHEREAS, the Community Development Division has administered the Home
Improvement Program since 1976 to rehabilitate single family owner occupied
housing for low and moderate income persons and improve our residential
neighborhoods; and
WHEREAS, in Miscellaneous Resolutions #8I237 and #82233, the Oakland
County Board of Commissioners approved guidelines for administering the
Home Improvement Program; and
WHEREAS, annual rates of inflation and rising construction costs have
reduced the purchasing power of the $7,000 (plus 10% contingency) maximum
home improvement loan amount set in 1981 and have eroded the Program's
capacity to bring a house to a decent, safe and sanitary condition; and
WHEREAS, costs incurred to comply with additional federal and local
rehabilitation requirements have further reduced the scope of work that can
be accomplished under the current $7,000 (plus 10% contingency) maximum loan
amount; and
WHEREAS, the Community Development Division recommends that the currert
maximum loan amount of $7,000 (plus 10% contingency) be increased to $9,000
(plus 10% contingency) as a means to offset negative economic and regulatory
influences that have eroded the program's housing rehabilitation capacity;
and
WHEREAS, the Oakland County Board of Commissioners adopted U.S.
Department of Housing and Urban Development Section 8 low and moderate
income limits as the income eligibility criteria for the Program; and
WHEREAS, the Home Improvement Program income limits are periodically
updated in accordance with HUD's revisions of the Section 8 low and moderate
income limits; and
WHEREAS, the current Home Improvement Program eligibility criteria
restrict eligible homeowners to a maximum of $10,000 in liquid assets as
established in 1976; and
WHEREAS, the income generated through liquid assets is considered part
of the base household income used to determine eligibility; and
n•••=1M
COUNTY MICHIGAN
DEPARTMENT OF COMMUNITY
AND ECONOMIC DEVELOPMENT
Daniel T. Murphy, Oakland County Executive
COMMUNITY DEVELOPMENT DIVISION
Kenneth R. Patterson - Manager
n•n••••..
OAKb
OAKLAND COUNTY COMMUNITY DEVELOPMENT
HOME IMPROVEMENT PROGRAM GUIDELINES
I. INTENT AND DEFINITIONS
The intent of the Home Improvement Program is to rehabilitate single
family owner occupied housing for low and moderate income persons and
improve residential neighborhoods.
Standards of Rehabilitation
Housing rehabilitation standards must meet HUD Section 8 requirements
that a home be decent, safe and sanitary or meet minimum housing code
standards.
Form of Assistance to Homeowners
Home Improvement Program funds are to be used to pay for the cost of
improvements for single family owner-occupied dwellings through an
installment and/or deferred payment loan program.
Installment Loan
A loan in which the principal and interest must be repaid on a scheduled
monthly basis.
Deferred Loan
A loan in which the principal only is to be repaid at some future time.
There are no installment payments and no interest is charged on the
principal.
II. ELIGIBILITY REQUIREMENTS
Any Oakland County homeowner, who lives in his/her home and resides
within the boundaries of a local jurisdiction that is participating with
the County in the Community Development Block Grant program is eligible
to apply for a housing rehabilitation loan subject to the following
conditions:
A. Person(s) owning or buying their home under a mortgage or land sales
contract are considered to be eligible applicants.
B. The property to be rehabilitated must be the primary residence of the
applicant. Properties purchased for resale or rental purposes are
not eligible.
C. Property taxes may not be more than one year delinquent.
Executive Office Building • Room 112 • 1200 North Telegraph Road • Pontiac, Michigan 48053 • (313) 858-0493
D. An applicant may secure only one loan through this program in any
five year period.
III. LOAN LIMITATIONS
The total property related indebtedness after improvement, shall not
exceed the State Equalized Value doubled or a market value appraisal.
Total indebtedness is determined as a sum of the existing property debt
and that which is incurred by the installment and deferred loan.
IV. APPLICATION PROCEDURE
A. Loan application forms are available at offices of local
jurisdictions participating with the County in Community Development
activities and at the Oakland County Community Development Division,
1200 North Telegraph Road, EOB Rm. 112, Pontiac, Michigan 48341-1043.
B. Applicants must submit a completed loan application with required
documents to the Oakland County Community Development Division or to
local communities that have staff to provide rehabilitation services.
V. ELIGIBLE IMPROVEMENTS
Examples of rehabilitation work that can be financed with a
rehabilitation loan may include, but are not limited to, the following:
plumbing, wells, septic systems, structural repairs, electrical work,
heating, replacement of roofs, masonry work, energy items and to provide
barrier-free access for handicapped and elderly.
VI. INELIGIBLE IMPROVEMENTS
Examples of rehabilitation work that cannot be financed with a
rehabilitation loan may include, but are not limited to, the following:
special assessments, patios, fencing, additions, accessory building,
mobile home improvements, air conditioners and air cleaners.
VII. INCOME ELIGTRTLITY FOR INSTALLMENT AND DEFERRED LOANS
A. Gross income means the annual gross income from all sources of all
residents of a housing unit who are 18 years of age or older with the
following exceptions:
1. Income of full-time students who are under 23 years of age.
2. Income of non-family member who is a roomer and boarder.
B. If any eligible family member has become unemployed or has resigned
from employment for a period of six months prior to the application
of a loan, the gross income of the family shall be computed at the
rate of pay immediately prior to the layoff or resignation period.
The period of unemployment may be considered in determining gross
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income of the applicant with the following exceptions:
1. Applicant has permanently retired.
2. Applicant has received a permanent medical leave.
C. Income eligibility is determined by the 1990 HUD Section 8 income
limits as reflected in Table 1. This table is used to determine
income eligibility for the Home Improvement Program based on family
size and gross household income. Home Improvement Program income
limits are periodically updated in accordance with HUD revisions.
TABLE I
Maximum Gross Household Income
Family Size (HUD Section 8 Income Limits)
$ 23,150
26,450
29,750
33,050
35,100
37,200
39,300
41,300
HUD Section 8 Income Limits Revised 5-1-90
D. The Home Improvement Program provides 3% interest installment loans,
0% interest deferred payment loans or a combination of the two. The
proportion of installment and deferred loan is based on the
applicant's Adjusted Household Income.
The Adjusted Household Income is the amount determined by projecting
all income (including gross wages, salaries, dividends, rent,
interest, public assistance payments and pensions) of all eligible
residents less $1,000 per family member. Social Security benefits,
aid to dependent children and child support payments when received by
the applicant for minor children is considered income and will be
used in determining eligibility for the applicant.
E. The Adjusted Income Ranges presented in Table 2 are used to determine
the percent of the installment and/or deferred loan. These ranges
are based on 1990 HUD Section 8 income limits as adjusted for family
size.
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TABLE 2
Adjusted Income
Ranges
Percent of
Installment
Loan
Percent of
Deferred Loan
This table is adjusted periodically in accordance with HUD Section 8 income
limit revisions.
I.
$ 19,450 and under 0% 100%
19,451 to $ 20,950 50% 50%
20,951 to 22,450 60% 40%
22,451 to 23,950 70% 30%
23,951 to 25,450 80% 20%
25,451 to 26,950 90% 10%
26,951 and over 100% 0%
F. The maximum amount of a contract may not exceed $9,000. The maximum
amount of an Installment Loan, a Deferred Loan or combination shall
not exceed $9,000 plus a ten percent contingency.
G. A ten percent (10%) contingency of the contract amount is permitted,
i.e. $9,900. Contingency funds shall be used to fund additional work
that is deemed to be necessary through the rehabilitation process.
H. The loan will be secured by a mortgage.
VIII. TERMS OF AN INSTALLMENT LOAN
A. Homeowners who qualify for an Installment Loan will pay interest at a
rate of 3% per annum on the unpaid balance of the loan. Monthly
payments are based on a term of three (3) to a maximum of twenty (20)
years, depending on the amount of the loan and the homeowners ability
to pay.
B. Minimum monthly payments will be $20.00 per month.
C. In the event that the applicant moves and/or rents the rehabilitated
property, the mortgage becomes due and payable at that time.
D. Upon death of a loan recipient, or the conveyance of any interest in
the property, the outstanding balance of the mortgage shall become
due and payable on such terms and conditions as the County shall
designate.
IX. TERMS OF A DEFERRED WAN
A. The principal sum of a "Deferred Loan" shall become due and payable
under the following terms and conditions:
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1. The Mortgagor transfers any interest in the property.
2. The Mortgagor moves, rents or leases the property.
3. The death of the Mortgagor.
4. Failure of the Mortgagor to maintain adequate fire and hazard
insurance to cover the debt insured by the loan and any
pre-existing property debt.
B. Upon occurance of any of the above conditions, the outstanding
balance of the mortgage shall become due and payable on such terms
and conditions as the County shall designate.
Adopted by the Oakland County Board of Commissioners, July 23, 1981. Revised
August 5, 1982.
eldisfPUBLISI (?/3 PUBLIC SERVICES COMM EE
WHEREAS, U.S. Department of Housing and Urban Development and Michigan
State Housing Development Authority (MSHDA) regulations do not impose liquid
asset limitations as a criterion fcr qualifying homeowners for housing
rehabilitation programs; and
WHEREAS, the Community Development Division recommends that the $10,000
maximum liquid asset limitation be eliminated from the guidelines; and
WHEREAS, the Oakland County Community Development Citizens Advisory
Council by a roll call vote of 12-0, have approved raising the maximum loan
amount for each home improvement project from $7,000 (plus 10% contingency)
to $9,000 (plus 10% contingency) and deleting the liquid asset limitation
from the Home Improvement Program eligibility criteria.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of
Commissioners approve the Home Improvement Program Guideline changes which
increase the maximum home improvement loan amount to $9,000 (plus 10%
contingency) and delete the liquid asset limitation from the eligibility
criteria as reflected in the attached Home Improvement Program Guidelines.
Mr. Chairperson, on behalf of the Public Services Committee, I move
the adoption of the foregoing resolution.
C.;...1161 T. PALi pny,
PROVE THE FORGOING RESOLUTION
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Canty EXécuti* Date
Resolution # 90201 August 30, 1990
Moved by Richard Kuhn supported by Pappageorge the resolution be adopted.
AYES: S. Kuhn, Law, Luxon, McCulloch, McPherson, Moffitt, Oaks, Olsen,
Pappageorge, Pernick, Price, Rewold, Skarritt, Wolf, Aaron, Caddell, Chester, Crake,
Ferrens, Gosling, Huntoon, Jensen, Johnson, R. Kuhn. (24)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND
I, Lynn D. Allen, Clerk of the County of Oakland, do hereby certify that the foregoing
resolution is a true and accurate copy of a resolution adopted by the Oakland County
Board of Commissioners on August 30, 1990
with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set
Juth py hand and afticed the seal of the County
of Oakland at Pontiac, Michigan this day AW Airmar„a„, „mnAD AP 199_o_
LynorD. Allen, County Clerk