1991-029-RES WHEREAS, the City Council of the City of Paris did heretofore in Resolution 90-058, passed and adopted
RESOLUTION NO. 9I-029
WHEREAS, the City Council of the City of Paris did
heretofore in Resolution 90-058, passed and adop~ed on the
5th day of July, 1990, authorize the processlng of an
application for grant from the Texas Department of Commerce
for the purpose of rehabilitation of substandard units in
compliance with the 1990 Texas Community Development
Program in the amount of $200,000.00; and,
WHEREAS, the Texas Department of Commerce, by letter
dated December 21, 1990, attached hereto as Exhibit "C", has
awarded said grant in the amount of $200,000.00 to the City
of Paris; and,
WHEREAS, the City of Paris is in need of
services under the Owner/Occupied Housing
Program as funded in said grant; and,
rehabilitation
Rehabil i tat ion
WHEREAS, Robert Jones, President of R,I.M. Enterprises,
Inc., has made a proposal of such services, which have been
incorporated in the form of a contract attached hereto as
Exhibit "A", and has submitted the City of Paris Housing
Development Fund Program Design, attached hereto as Exhibit
"B"; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS,
that the City of Paris Housing Development Fund Program
Design, attached hereto as Exhibit "B", is hereby approved;
and,
BE IT FURTHER RESOLVED, that the form of contract for
administration and related services for the City of Paris
Owner/Occupied Housing Rehabilitation Program funded through
the Texas Housing Development Fund of the Texas Department of
Commerce between R.I.M, Enterprises, Inc,. and the City of
Paris attached hereto as Exhibit "A", is accepted; and,
BE IT FURTHER RESOLVED, that the Mayor of the City of
Paris, Eric S. Clifford, be, and he is hereby authorized and
directed to execute on behalf of the City of Paris the
contract with R.I.M. Enterprises, Inc., in the form of
Exhibit "A" attached hereto.
Passed and adopted this 7th day of March, 1991.
,,~::, 2,
ATTEST:
Mattie Cunningham, Ci
APPROVED AS T0 FORM:
CONTRACT FOR ADMINISTRATIVE SERVICES
AGREEMENT
THIS AGREEMENT, made and entered into this 11th day of
February, 1991, by and between the CITY OF PARIS ,
State of Texas Ihereinafter called the "City"l,
acting herein by Mayor Eric Clifford, hereunto ~uly
authot'ized, ar,d R. 1. M. Er.tet'prises, Ir.c. Ihet'eir,aftet'
called the "Cc'r,sultant"l actir,g hereir. by Robert L.
Jones, J,'. and Chat-Ies F. Lucas.
WITNESSETH THAT:
WHEREAS, the City of Paris desires to implement a project
under the general direction of the Texas Department of
Commerce , Housing Development Fund, and
WHEREAS, the City desires to utilize the services of
R.I.M. Enterprises, Inc. to render certain rehabilitation
services in connection with the City's Housing Development
project funded by the Texas Department of Commerce.
NOW, THEREFORE, the parties dc. mutually agree as follows:
1. Scope of Services
Prepare necessary forms pack.
Prepa,'e arid hold Cor.tractors Confe,'er,ce.
Provide contractor eligibility verification.
Screen applicants for eligibility.
Draft Specifications and Cost Estimate.
Assist Qwrler" irl selectioYI of CorltractOt.....
Prepare and submit documents to Housing Board.
Assist Owner with Construction Contract.
Provide Interim inspections.
Collect necessary close-out documents.
Assist Owner in Contractor payment.
Provide City with all records.
c.. Time of Performance
The services
Feb,'ua,'y 11
ces reqlli red
completed 1'10
of R.I.M. Enterprises will commence on
1991. In ar,y event, all of the servi-
and pe,'fon"ance he,'e~ll",der shall be
later than January 1, 1993.
EXHIBIT A
3. Access to Information
It is agreed that all information, data, reports
aYld records Ylecessary tel cat"ry Clut the WClt"k des-
cribed above shall be furnished to R.I.M. Enter-
prises by the City and its agel'",cies. No charges
will be made to R.I.M. for such information and
the City will cooperate with R.I.M. Enterprises
in every way possible to facilitate the perfor-
maY'lce of the wot"k desct....ibed iY'1 the contr.act.
4. Compensation and Method of Payment
The max irnufIl cl:lmpeYlsat iOYI arid t"eimbursemel'"lt
to be paid f,,,,' the services 1 isted above shall
not exceed Nineteen Thousand Five Hundred Dollar-
s. Payment to Consultant shall be based upon sat
isfactory completion of identifed services listed
under Scope of Work. Any additional units completed
above the 30 will be reimbursed to the Consultant
at the unit rate of $650.00.
Payment shall be made in response to invoices
submitted by the Consultant.
5. Indemni ficat ion
R.I.M. Enterprises, Inc. shall comply with the
requirements of all applicable laws, rules and reg-
ulations, and shall exonerate, indemnify, and hold
harmless the City aY"ld its agency members from aYld
against them, and shall assume full responsibility
for payments of Federal, State and ~ocal taxes on
cOYltribl.ltiol'"ls imposed or requit"ed uYlder the social
security, workman's compensation, and income tax
laws.
6. Miscellaneous Provisions
a. This agreement shall be construed under and
accord with the laws of the State of Texas,
and all obligations of the parties created
hereunder are performable in Lamar County,
Texas.
b. This agreement shall be binding upon and ensure
to the benefit of the parties hereto and to
their respective heirs, executors, administra-
tors, legal representatives, successors, and
assigns where permitted by this Agreement.
c. In any case one or more of the provisions con-
tained in this Agreement shall for any reason
be held to be invalid, illegal or unenforceable
iy, <my t'espect, such invalidity, illegality, Cot'
unenforceabi1ity shall not affect any other
provision thereof and this Agreement shall not
be construed as if such invalid, or unenforce-
able provision had never been contained herein.
d. If any action at law or in equity i~ necessary
to enforce or interpret the terMS of this Agre-
eMent, the prevailing party shall be entitled
to reasonable attorney's fees, costs, and nec-
essary disbursement in addition to any other
relief to which such party is entitled.
e. This AgreeMent May be aMended by Mutual agree-
ment of the parties hereto and a writing to be
attached to and incorporated into this agree-
merit.
IN WITNESS HEREOF, the parties have hereunto set their
hands and seals.
CITY OF PARIS
R. 1. M. ENTERPRISES, INC.
Eric Clifford, Mayor
Robert L. Jones, Jr., Pres.
ATTEST:
Mattie CunninghaM, City Secretary
CITY OF PARIS
HOUSING DEVELOPMENT FUND
PROGRAM DESIGN
FEBRUARY, 1991
RIM ENTERPRISES, INC.
P.O. BOX 881
PITTSBURG, TEXAS 75585
EXHIBIT B
HEADING
I rlt rod llct i Crr-I
CITY OF PARIS
Table of Contents
General Definitions
Chapter 1
City Map
Chaptet' 2
Chapter 3
Chapter 4
Chapter 5
Chapter 5
Chapter 7
Chapter 8
Chapter 9
Chapter 10
Eligibility Requirements
Cost Allowable in Grants
Limitations on Grants
Solitication, Submission and
Processing of Applications
Terms and Conditions Underwhich
Gral'".ts are Made
Determination of Work to be Done
Contracting for Rehabilitation Work
Contractor Requirements
Inspection, Cloes-Out and Final
Payrnel'",t
Applicants Eligibility to Appeal
PAGE
1
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0::.
3
5
5
7
8
10
11
12
13
14
15
CITY OF PARIS
HOUSING DEVELOPMENT FUND
PROGRAM DESIGN
INTRODUCTION
The purpose and objective of this Rehabilitation Program of own-
er occupied housiYlg is to assist low to fIlode.,....ate iY'lcome families
to obtain decent, safe and sinitary housing.
Further, through revitalization and conservation of existing
housing stock, the City seeks to restore and preserve environ-
mentally pleasir,g neighborhoods, encou,'age additior,al he,me mair,-
tenance, and provide incentive for redevelopment.
-1-
GENERAL DEFINITIONS
OWNER-OCCUPIED RESIDENCE- A property occupied by the c,wr,e.' which
is used by a single family for residential purposes only.
REHABILITATION STANDARDS- Standard Building Code as adopted by
the City of Paris.
REHABILITATION COSTS- The future costs of repairs, improvements
and other incidentials incurred by an applicant for the rehabil-
itatie,n of eligible property finar,ced by g.'ant flmds.
ELIGIBILITY INCOME- Actual annual income from all sources as
stipulated and based upon 125~ of poverty income of the area.
If sufficient applicants are not obtained, those at or below 80Y.
of median income may be selected.
PROGRAM GOVERNING BODY- The Housing Board as established by the
Mayor and City Council of Paris, Texas.
PROGRAM ADMINISTRATOR- RIM Er,terprises, Ir,c. as st i pulated in
the contracts.
-2-
CHRPTER 1.
ELIGIBILITY REQUIREMENTS
1.1 Rpplicant Requirements For R Grant
To be eligible for a rehabilitation grant, the applicant must be
an individual or fa~lily who owns and occupies a single family
dwelling used for residential purposes only, located within the
City limits. In addition, the property must have at least one
condition which constitutes a code violation as stipulated in
the Standard Building Code.
1.2 Validation of Ownership
Rpplicants must supply a Deed, Deed of Trust, or Warranty Deed
to verify ownership. Contracts of Sale or Contracts of Deed will
not be accepted.
1.3 Establishing Eligibility For R Grant
a. Housing unit must be owner occupied.
b. Rpplicant must reside in a single family dwelling located
within the City limits.
c. The following table shall be used to establish a applicants
eligibility based upon gross family annual income at the
time of application:
NUMBER OF PERSONS
125" POVERTY
80" MEDIRN
1
2
3
4
5
6
7
8
$ 7,850
10,525
13,200
15,875
18,550
21 , 225
23,900
26,575
$14,300
16,300
18,350
20,400
22,350
23,700
25,000
26,300
For additional members add:
2,675
2,675
1.4 Income Verfication
The applicants staternent eof incorne shall be verfied by their
most recer,t tax return. Other acceptable documentatior, includes:
Social Security, SSI Statement of Benefits, Statement from DHHS
for RFDC, Ur,employment Insurance Statemer,t, etc. Income from all
forms, for each member residing in the unit, must be verfied.
-3-
1.5 Rehabilitation Grant Approval
Units will be rehabilitated following the eligibility procedure
on a first-come, first-served basis.
Applicants who haved received grants from the City in the last
10 years will be ineligible for grant assistance.
-4-
CHAPTER 2.
COSTS ALLOWABLE IN REHABILITATION GRANTS
2.1 General
A rehabilitation grant will be made only to cover the cost of
rehabi I i tat ion necessa,'y to make owne,'-occupied, si ng le-fami ly
resider,t ial property cor,form to lc,cal cc,des, arId other costs as
provided in this section.
2.2 Includable Costs
a. Requirement of the City:
(1) The repair or removal and replacement of elements of the
dwelling structure, including basic equipment and other
improvernerlts to the property such as garages and steps.
The term "basic equipmerlt" ir,cl'.tdes such items as heat-
ing furnace, water heater, electrical and plumbing sys-
tems and sanitary fixtures.
(2) The provisior, of sar,itary or other facilities, including
provision, expansion, and finishing of space necessary
to accomodate those facilities.
b. Incipient Violations
An incipient violation exists if, at the time of the inspec-
tion, it is determined that the condition of an element in
the structure will deteriorate into an actual violation
within the near future.
c. Building Permits And Construction Administration
The cost of building permits, fees and specific construct-
ion administration will be allowable and covered by the
grant. Filing fees and the cost of legally binding documents
shall be eligible under the grant.
2.3 Costs Not Includable
a. Materials, fixtur'es, equipmer,t c,r landscaping of a type or
quality which exceeds that customarily used in the locality
for properties of the same general type as the property to
be rehabilitated.
b. Acquisition of land.
-6-
CHAPTER 3
LIMITATION OF REHABILITATION GRANTS
3.1 Limitation Of Grant AMount
The aMount of rehabilitation grant shall not exceed the actual
cost of the repairs and iMproveMents necessary to Make the prop-
erty conforM with local codes. Including all sources, the aver-
age grant aMount is $7,500. Grants exceeding this aMount will be
evaluated on a case-by-case basis. In no circu,"stance may the
City expend, from all sources, more than $10,000 per unit.
3.2 Rehabilitation Exceeding PrograM LiMits
For units which cannot be brought to local codes with the ex-
penditure of the maximum grant aMount, the following procedure
will be followed:
Applicant will be notified in writing of the infeasibility
of their application.
If the applicant can provide for funding over the available
grant aMount, the City will reconsider the feasibility of
the application. These funds 'Rust be in cash, made available
to the City prior to construction. If an additional lien is
tied to these funds, it must be subordinate to the City.
3.3 Contingency Funds
There will be no s~ aside for contingency. Any change in the
contract amount will be approved by the City, in writing, and
prior to the modification of scope of work.
-7-
CHAPTER 4
SOLICITATION, SUBMISSION AND PROCESSING OF APPLICATIONS
4.1 Solicitation Of Application And Records
a. All notices, interviews and application activities will be
carried out in facilities located within the community.
b. All official records will be kept on file within City
offices.
c. Processing and maintenance of records will comply with
existing legislation.
4.2 Processing And Submissions For A Rehabilitation Grant
Listed below are the functions to be performed in connection
with a rehabilitation grant:
a. Following a public notice, applicants will be interviewed
and advised of the objectives of the program.
b. Applicants will be advised of the availability and benefits
of a g,-ay,t.
c. Eligibility of applicant will be determined. Official verfi-
cation of income and ownership will be obtained.
d. Property will be inspected.
e. Work Write-Up/Cost Estimate of required work will be done.
f. Amount of grant necessary to complete unit will be deter
filiY"led.
g. Applicant will be advised of the conditions underwhich a
grant will be made.
h. Selection of contractor based upon established list will
be made. Price will be negotiated.
i. Completed application package is persented to Housing
Board for approval.
j. Construction contract and all closing documents are
prepared and signed.
k. Owy,er issues Neotice To Proceed to contracte,r.
1. Inte,-im inspectioy,s are made as necessary.
-8-
m. Final inspection is made.
r,. Cor,tractcw provides c,wr,et' with; 1 year warranty, releases
from all sub contractors and suppliers.
o. Assist owner in the complete payment to contractor.
p. Aid applicant in exercising a 1 year warranty made by the
contt'actm' wher, necessary.
4.3 Approval Of Grant Application
If the rehabilitation grant amount is sufficient to repair the
structut'e tc' local c,:>des, the application shall be presented to
the Housing Board. When signed it will be considered approved.
4.4 Grant Cancellation
An approved rehabilitation grant may be cancelled because the
applicant has requested cancellation, or is unwilling or unable
to proceed with the rehabilitation work.
The City may cancel a rehabilitation grant if it is determined
that irlfclrmatioY'1 given is incorrect or irlcomplete.
In either event the City will prepare a letter of cancellation
and mail to owner. City will retain a copy.
4.5 Grant Repayment
Eligibility for receiving a rehabilitation grant is based on the
non-sale or transfer of the property for a period of four years
following construction completion. Should the property be sold
prior to the end of the fourth year, the owner will be required
to repay the principal amount of the grant in the following way:
a. If sold within the first year, the total amount is due.
b. If sold during the second year, 75~ is due.
c. If sold during the third year, 50~ is due.
d. If sold during the fourth year, 25~ is due.
e. After the fourth arn",iversat'y of completion of con-
struction, the grant is forgiven and this lien is
considered null and void by the City of Paris.
-9-
CHAPTER 5
TERMS AND CONDITIONS UNDERWHICH REHABILITATION GRANTS ARE MADE
5.1 Rehabilitation Grant Conditions
The specific terms and conditions with respect to a rehabilita-
tion grant are incorporated into the application. The applicant
shall agree, and by signing the application does agree to:
a. Civil Rights:
Comply with all DHUD requirements with respect to Title VI
of the Civil Rights Act of 1964, to not descriminate on the
basis of race, color, creed, or national origin in the sale
lease, rental, or occupancy of subject property.
b. Cancellation of Grant:
Return of the grant proceeds with no right, interest, or
claim ir, the prc:,ceeds, if the grant is car.celled before
the rehabilitation work is started,
c. Use of Proceeds:
Use of grant proceeds only to pay for costs of materials and
services necessary to carry out the rehabilitation work for
which the grant will be approved.
d. Completion of Work:
Assure the rehabilitation work shall be carried out promptly
and efficiently through written contract but with the prior
concurrance of the Program Governing Body.
e. Inel i g i ble Cor,tractors:
Not award any contract for rehabilitation work to be paid
for in whole or in part with the proceeds of the grant, to
any contractor now appearing on a debarment list provided by
DHUD and approved by the Program Body.
f. Inspectior.:
Inspection by the City or it's designee of the property, the
rehabilitation work and all contracts, materials, equipment,
payrolls, and conditions pertaining to the work.
g. Recc:.,-ds:
Keep such records as may be required by the City.
h. Interest:
Not permit any member of Cor,gress or City employee to share
in the proceeds of or any benefit arising from the grant.
i. Relocatior.:
There will be no relocation required under the grant.
-10-
CHAPTER 5
DETERMINING WORK TO BE DONE WITH A REHABILITATION GRANT
5.1 Property Inspection
The progt'am ad",il'"listratc.r shall inspect the prc.perty and shall
prepare an inspection report which identifies each deficiency
with respect to local codes, and other deficiencies which may be
corrected through a rehabilitation grant.
5.2 Work Write-Up And Cost Estimate
A work write-up and cost estimate is a statement prepared by
Program Administrator based UPOl'"' the property inspection report
that itemizes all the rehabilitation work to be done on the
property, and includes an estimate of the cost of each item.
The cost estimate shall be reasonable and reflect actual costs
prevailing in the locality for comparable work.
-11-
CHAPTER 7
CONTRACTING FOR REHABILITATION WORK
7.1 Form Of Contract
The construction contract will consist of a document signed by
the contractor and accepted by the applicant upon approval of
the rehabilitation grant. The contract shall contain a bid and
proposal by the contractor as well as specifications for the
work to be done.
7.2 Use Of Alternatives
The cc,r,tract dc,cl.lfner,t rnay provide for altet'r,ates (char,ge corders)
by which the bidder, as part of his bid and proposal, offers in-
ct'eases or decreases to the lump sum corltract price to cover al-
ternates for work to be performed. Change Orders will be initi-
ated by the Program AdministratCot' arId approved by the Applicant
ar,d Cor,tractc't'.
7.3 Selection Of Contractor
The Program Administrator will perform outreach/notification of
work to contractors. Contractors will make application on forms
provided by the City. Work arId banking referer,ces will be
checked. Area HUD office will be contacted in order to determine
if cor,tr'actot' has beer, debart'ed from HUD projects.
Contractors on approved list will be selected, in turn, as
projects become available. The contractor, using staff work
write-up will walk through unit in order to prepare his bid.
At. a subsequent meeting with Program Administrator, the Con-
tractor will present his bid. Bids within 10~ of staff estimate
will be accepted.
Approved contractors who fail to bid on units selected, and/or
continue to demonstrate unrealistically high bids or who demon-
strate an unwillingness or inability to perform work as re-
quired, will be removed from the list. New contractors, when
making application during program, will be added to approved
contractor's list and be assigned a unit when applicable.
After the successful completion of their first contract, more
than one unit may be assigned to a contractor at one time.
7.4 Labor Performed By Owner
The owner rnay complete some tasks if he has the skills required
to perform the work involved and if no license is required. The
grant shall rIot reimburse the owner Cot' his family fcor any work
performed.
-12-
CHAPTER 8
CONTRACTOR REQUIREMENTS
8. 1 Contractor Approval
Before a contractor is placed on the approved list the following
procedure must be completed:
a. Contractor must submit approved application to City.
b. Contractor must not appear on the HUD debarment list.
c. The Prograrn Admiy,isb'atot' must vet'ify a positive histc'ry of
acceptable performance and/of business practice.
d. Approval by the Housiy,g Board must be obtaiy,ed pt'ior to
letting the contract.
8.2 Provisions For Continuous Eligibility
The contractor must continue to perform his work in a satisfac-
tory manner as well as correcting deficiencies on completed jobs
iy, order to remaiy, on the approved contractor's list.
8.3 Removal From The Approved Contractor's List
In the event a contractor fails to comply with any of the re-
quirements listed in this section, he shall be removed from the
list for cause by the Housing Board.
-13-
CHAPTER 9
INSPECTION, CLOSE-OUT, AND FINAL PAYMENT
IY'lspectic1n of constructi':'Y'1 work shall be made il"'l accordaY"lce with
the fc,llowi~lg:
a. Progress Inspections:
A compliance inspection of the rehabilitation work shall be
made as apprQpriate during the cOl"'lstructioY"1 peric1d.
b. Fi~lal Inspectio~"
Upon completion of the rehabilitation work and receipt of
the contractor's invoices including his certification of
satisfactory completion in accordance with the contract
and his warranty, a final inspection will be scheduled.
c. Final Payment:
When the fi~,al inspection verifies work requit'ed by the
contract has been satisfactorily completed, consultant
shall obtain from the contractor; Releases of Liens, copy
of each warra~lty due, a~ld final permit approval. A request
for Payment shall be submitted to the City.
9.1 Certification Of Final Inspection
Afte,' it has bee~1 determi~led the rehabilitatie'~1 we,rk has bee~1
fully and satisfactorily completed and the final inspection form
obtained, any and all necessary paperwork will be processed and
disbursed.
9.2 Close-Out Files
The City will receive from the contractor and all subcont,'actors
releases of claims on the property and warranties for equipment
installed and copies of final permit approval. These documents
will be retained in City files.
-14-
CHAPTER 10
APPLICANT'S ELIGIBILITY TO APPEAL
10.1 Applicant's Intent To Appeal:
The applicant must make his appeal known by filing a letter to
the Housing Board.
a. Assistance in preparation of the letter of appeal will be
provided by the City or it's designee.
b. Applicant will be notified of the time and place of the next
appeals hearing and informed that either him or his rep-
resentative must be present at the appeal.
10.2 Hearing The Appeal
The appeals proceeding is designed to allow each person an equi-
table opportunity to express their views and reasons for believ-
ing they have been unfairly denied housing rehabilitation as-
sistance. Applicants and selected speakers listed on the appeals
notice will be alloted five minutes each for their statements.
In addition, any person may submit written statements on behalf
of the applicant. At the conclusion of the appeals presentation,
each member of the Appeals Board (Housing Board) will be given
the opportunity to ask questions in an effort to obtain perti-
nent facts. The appeals board will then adjourn to consider
their decision. Each person making an appeal will be notified in
writing within one week as to the findings of the Board.
-15-
-
TEX, \s
I )EI ~\1 IT\II':NT( W
(:( )~I\] 1,:1 {( :I'~
December 21, 1990
Mr. Michael E. Malone
City Manager, City of Paris
Post Office Box 9037
Paris, Texas 75461
Dear Mr. Malone:
We at the Texas Department of Commerce are pleased to
inform you that City of Paris has been awarded a grant in
the amount of $200,000 for a housing rehabilitation
program.
This award is made available through the Texas Community
Development Program. A representative from Commerce will
be contacting you in the near future to execute a contract
agreement.
Thank you for your continuing efforts to improve the
quality of life in your community. If you have any
questions or if we can provide any assistance during the
course of this project, please do not hesitate .to call Ms.
Ruth Cedillo, Commerce Program Manager of the Texas
Community Development Program, at (512) 320-9507,
WDT:RC:rd
RErr-r' '--f',
\ (. ~~. L'. t V l~. LJ
. DEe 2 ::, 1990
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