Housing Rehabilitation Program: Procedures

1. Pre-application: Applicants will complete and submit a Pre-application. The applicant will be contacted to verify the information and discuss the nature of their housing rehabilitation needs. 

2. Preliminary Assessment: The Community Development Rehabilitation Specialist will schedule a visit to inspect the home and make a brief preliminary written recommendation regarding the scope of work needed, whether there are any lead-based paint concerns, and a general cost estimate. 

3. Application: Applicants will complete a full application form that will be used by staff to determine program eligibility. Applicants must provide copies of ownership documents, insurance, paid property taxes, income, utilities, and other information as noted on the previously mailed request letter. The application form will be reviewed and signed by the applicant. Staff will verify information submitted and provide a copy of the Housing Rehabilitation Program Policies and Procedures to the applicant during the explanation of the Housing Rehabilitation program. Eligibility is determined based on family size and income guidelines established for low and very low income persons by the Department Of Housing and Urban Development (HUD) as well as all city property taxes being paid up to date. All one-person households must be either elderly (60 years or older) or disabled as well as lower income to qualify.  Applicable Federal regulations regarding lead-based paint will be discussed with each applicant during their intake appointment. The discussion will include age and condition of home, family make-up, the lead-based paint requirements and an estimated cost for the risk assessment. The applicant will be informed that the cost of the assessment and/or inspection will be added to other health, safety or needed housing rehabilitation work. The roles of the Rehabilitation Specialist and Contractors will be explained as they relate to the correction of any lead-based paint problems. The applicant will also be informed that according to the program guidelines, all program participants are required to have an initial lead-based paint risk assessment. Upon completion of the risk assessment process, the homeowner will be given and acknowledge receipt of a copy of the results by the Rehabilitation Specialist and a copy will be maintained in the homeowner’s case file

4. Waiting List: Homeowner will be placed on a waiting list with first priority to homeowners with work deemed as emergency by the Rehabilitation Specialist. All others will be placed in the order of applications received. Priority may also be extended to new applicants over recipients of previous assistance.

5. Work Order: The Rehabilitation Specialist will arrange, with the homeowner, a re-inspection of their home and prepare a written work order. In cases that require lead-based paint abatement of any kind, the Risk Assessor will review the required work to be completed. All work items shall be clearly explained and be in general conformity with the Master Specifications which describe the exact work to be done. The work order will be reviewed with the homeowner and their approval and signature obtained. Community Development staff will then proceed to solicit bids on behalf of the homeowner. 

6. Cost Estimates: The Rehabilitation Specialist shall also prepare a cost estimate for the proposed work. Cost estimates for any and all lead-based paint abatement will be reviewed with the homeowner. The estimate(s) will be used as a guideline when reviewing bids received. 

7. Bidding Process, Contractor Selection:  Community Development staff will notify contractors of the availability of the work order and establishes a date for return of bid packets. Bids are opened at the designated time and a bid tabulation is prepared. The lowest responsible bid will generally be recommended to the homeowner for acceptance. A 10% contingency amount to cover unforeseen items will be added to the bid amount in order to establish the total contract amount. Any lead-based paint abatement work that will be contracted out will follow the same procedure and will take priority over the regular rehabilitation bid and/or work. Lead-based paint abatement contractors who receive a work order for bidding must be qualified and certified to do abatement work. 

8. Preparation of Contract Documents:  Community Development staff prepares owner/city and owner/contractor agreements as well as the appropriate lien and promissory note documents and contacts the homeowner to explain the documents and to obtain necessary signature(s). In cases where there are two separate work orders distinguishing lead-based paint abatement and regular housing rehabilitation work to be completed, the contracts will reflect the total bid amount for both work orders. 

9. Final Approval:  Rehabilitation projects located within the City of Ann Arbor in the amount of $25,000 or above are forwarded to the next session of City Council for approval. Contracts below $25,000 are circulated to the Community Development Director, the City Administrator, and the City Attorney for approval. Contract amounts above the maximum limit ($35,000)for rehabilitation assistance will require Waivier and Review Board approval before City Council consideration.

10. Notice of Right to Cancel: After approval and signature of all contracts, the homeowner is provided two copies of the Notice of Right to Cancel form. The homeowner has three (3) business days from the signature date to cancel the project without any penalty or repayment. After the recision date is passed and signatures are secured on all documents, an account is set up by the Office of Community Development on behalf of the homeowner to pay for the rehabilitation work to be completed. 

11. Pre-construction Meeting: A pre-construction meeting may be arranged between the homeowner, the contractor and the Rehabilitation Specialist to explain any issues or concerns relating to the work. If there is no abatement needed an official meeting may not be scheduled and in that case the contractor will notify the homeowner of the time they will commence the rehabilitation work.

12. Access to Premises: The homeowner shall provide the all contractors full access to the premises between the hours of 7:00 a.m. and 6:00 p.m. during the contract period. To facilitate work, prior to construction, the homeowner shall remove all excess stored materials and personal property from the site. Such material left on the site shall be limited to normal amounts of furniture and appliances and that personal property which can be stored in closets or dressers or cabinets. Personal property such as pictures, knick-knacks, etc. should be packed away by the homeowner. Failure to provide accessibility may cause the project to be discontinued at the homeowner’s expense. 

13. Construction: The contractor is responsible for completing items identified in the work order as bid and approved. Any changes to the work, including additions to work, deletions, cost changes, or time extensions will be noted on a “Change Order” form to be prepared by the Rehabilitation Specialist and approved by the homeowner, contractor, Rehabilitation Specialist and the Community Development Director. Once the project has begun, the Rehabilitation Specialist shall have the ability to authorize work which is discovered by the contractor and determined to be necessary for the completion of the project. This additional work shall be reflected in a “Change Order.”

14. Payments: The contractor shall submit requests for payment of work to the Rehabilitation Specialist.  The Office of Community Development shall withhold 10% of the contract amount until satisfactory completion of the project.  An inspection will be made by the Rehabilitation Specialist of items completed prior to authorizing any payments to be made to the contractor. The homeowner shall also sign off on payments to the contractor upon satisfactory completion of the work. Final waiver of construction liens must be on file before release of final payment. The Rehabilitation Specialist shall have the ability to authorize payment for work completed by the contractor pending satisfactory completion of such work. 

15. Final Documents: Upon completion of the work, the final lien and security document will be prepared based on any changes in the dollar value from the original contract amount. The final amount will also include all cost associated with the inspection, correction and or removal of lead-based paint. Any new documents will be signed by the homeowner and then all appropriate documents are filed with the Washtenaw County Register of Deeds office. 

16. Loan Servicing: The Community Development Department handles the loan servicing and collects monthly payments as applicable. Homeowners who are eligible for low interest loans rather than deferred loans will review and sign a loan servicing document which explains the loan terms, interest rate and payment amount. After an account is established the homeowner will receive a coupon book with a reminder of the due date and the payment amount.

17. Survey Form: Upon completion of the rehabilitation work the Rehabilitation Specialist will provide the homeowner with a survey form allowing homeowners an opportunity to provide feedback on the work completed. 

18. Complaint Resolution: In the event concerns or problems are not resolved with the assistance of the Community Development staff, the owner or contractor have the right to contact the Waiver and Review Board in reference to complaint resolution procedures, as outlined in Chapter IX of the Housing Program Guidelines. 

NOTE: Emergency assistance may be provided before all required information and processing steps have been completed. However, before final completion of the case, all necessary information and paperwork must be submitted and all appropriate contracts and agreements signed by the homeowner. Emergency repair actions needed to safeguard against imminent danger to human life, health or safety, or to protect property from further structural damage are exempted.