Rehab Program Best Practices

1. Rehab Program Best Practices 50th Annual Conference Kevin Howard, Manager June 19-22, 2019 Community Development Division Omni Hotel, Jacksonville Florida

2. Community Development Block Grant (CDBG) Program City of Little Rock CDBG Owner Occupied Rehabilitation Activities: • Limited Home Repair (LHR) • Emergency Assistance Grant (EAG) • World Changers Activity (WC)

3. Community Development Block Grant (CDBG) Program World Changers Activity • The City of Little Rock partners with World Changers using Community Development Block Grant funds to paint and do minor repairs to the exterior of houses for very-low elderly residents. • This activity is city – wide. • The City of Little Rock will provide the materials and World Changers (a faith base organization) will provide the labor to complete this activity. • Activity is normally started and completed during the months of June and July. World Changers is a 1 week activity. (4 Days)

4. World Changers Activity Minor Repairs – Painting, Scrapping, Replacing rotten siding and wood, repairing decks, repairing wood privacy fencing, and cutting back trees and cutting yards.

5. World Changers Accomplishments 2015-2019 How many units are completed each year? • 2015 – 13 units (1 week) • 2016 – 33 units (2 weeks) • 2017 – 27 units (2 weeks) • 2018 – 14 units (1 week) • 2019 – 16 units (1 week)

6. How Does World Changers Activity Work? Community Partnerships • City of Little Rock – Provides funding through CDBG for materials, Logistics, Ladders, instruction of Lead Safe Work Practices and support to complete projects. • Local Community Churches – Life Line Baptist Church provides Housing for Volunteers. Churches in the community provide lunches each day for volunteers. • World Changers Volunteers – Provides volunteers for labor and skilled carpenters for Crew Chiefs. Average of 140-200 volunteers during the week.

8. Qualifications: 1. You must be at least 62 years of age or disabled 2. You must own and occupy the home as your principle residence within the last 12 months. 3. You must meet the income guidelines for the program 80% of the Area Median Income (AMI)

9. World Changers Activity Planning Meetings • 1st Meeting Starts in March (discuss the number of houses to be completed and the number of weeks) • 2nd Meeting May – Review List of Candidates for World Changers • 3rd Meeting June 1 week before the event (Finalize List) • 4th Meeting Monday of the event (Crew Chiefs Meeting and Training. Also distribute folders and keys)

10. Work Site Information • Lead Requirements Worksheet • Lead Hazard Presumption Notice • Work Site Info form • Color Selection • Picture of Home Each World Changers site supervisor has one of these files at their jobsite location.

11. Eligibility Requirements: • Qualification of applicants is determined by the Community Development Division or the implementing agency according to the following guidelines. • Applicants for rehabilitation assistance must reside within the city limits of Little Rock, Arkansas and must occupied the dwelling for at least one (1) year. Applicants must certify that the home is not being offered for sale, and is their primary residence/homestead, as indicated per the Pulaski County tax records. • Applicants have gross annual incomes at or below the applicable low-income limits established by the U. S. Department of Housing and Urban Development (HUD) for the jurisdiction of Little Rock, Arkansas. The applicable low-income limits for determining program eligibility are published by HUD in the federal register and are updated annually. The low income limit shall mean the cumulative gross annual income of all the persons who occupy the dwelling unit to be rehabilitated that does not exceed 50 or 80 percent of the area median income (depending on the program), adjusted for family size, as established by HUD. The occupant household’s gross annual income (for the purpose of determining program eligibility) shall be calculated according to the HUD regulations identified in the Code of Federal Regulations at 24 CFR, Part 5 or the HUD Income Calculator. Income of all household residents age 18 or over, unless they are a full-time student, will be included in the total annual gross household income determination. Gross Annual Income, includes but is not limited to child support, Social Security, pensions, income from annuities, interest income on savings, etc. The annual income limits for Little Rock, Arkansas increase based on the number of persons in the household. Family size will be determined by the number of occupants living in the dwelling to be rehabilitated on a regular basis.

12. Eligibility Requirements: • Household residents under the age of 18 qualify as dependents of the head of household according to the HUD regulations identified in 24 CFR, Part 813.102 and are eligible for a dependent deduction. If an applicant is a full time student, the applicant will be required to provide their parents income information so that the Community Development Division can determine if the applicant has been claimed as a dependent on their parents Federal Income Tax return. • Verification or certification of income and assets will be required to determine program eligibility for all HOME-funded projects. The applicant and any other family member must execute a release of information form authorizing any depository or private source of income, or any Federal, State or local agency, to furnish or release to the Community Development Division or the implementing agency such information as determined to be necessary. Certification of income and assets will be required to determine program eligibility for all CDBG/HOME-funded projects. Certification of income and assets means the applicant certifies that all information provided is true and correct. The Community Development Division or the implementing agency shall also require the family to submit documentation determined to be necessary if it is required for purposes of determining or auditing an applicant’s eligibility to receive program assistance, for determining the applicant’s or applicant’s family members gross annual income. The use or disclosure of information obtained from an applicant or applicant’s family member or from another source pursuant to this consent to release information form shall be limited to purposes directly connected with administration of the HOME Owner-Occupied Rehabilitation Program. Assets shall include checking, savings, other bank accounts, stocks, bonds, CDs, trusts, real estate and cash held by any household member. The determination of the Value of an asset use the current passbook rate as determined by HUD.

13. Other Eligibility Requirements: • The City would like for standard property insurance to be maintained on the property (with coverage adequate to insure the City’s lien position) but in the event the homeowner does not have insurance a certification will be provided to the homeowner to gain and maintain insurance after the rehabilitation is complete. If a property is located in a flood plain, flood insurance must also be maintained (with coverage adequate to insure the City’s lien position). • Title searches will be obtained on all properties. Evidence of ownership of the property will be confirmed through the Pulaski County Tax Records and by warranty deed.

14. WAITING LIST MANAGEMENT To be placed on the waiting list: The applicant will be required to complete a Home Repair Assistance Questionnaire form to register their interest in participating Community Development Division rehab programs. The preliminary application form requests basic information about the applicant, the applicant’s property, and the occupants. The submission of a preliminary application does not guarantee assistance under any of the Community Development Rehabilitation Programs.

15. Rehabilitation is Beyond the Scope of Work for the Program • A project may be determined infeasible if the cost to complete all needed repairs exceed the respective program limits. The process to cancel proposed repairs is outlined in the Community Development Owner-Occupied Rehabilitation Program Procedures Manual. The process to calculate the cost will be determined either from estimates determined by Community Development inspector and/or from the Contractor’s bid received on a project. Pictures should be taken by the Community Development Inspector for documentation purposes and place in the file or the shared CDBG drive. Community Development Technicians will contact the applicant to document the infeasibility of completing the project due to the repairs exceeding the respective program limits. A rejection letter will be sent to the applicant to document the contact made to the applicant.

16. SELECTION AND CLEARANCE OF CONTRACTORS • Selection of a general contractor in the Elderly Home Repair and Limited Home Repair Rehabilitation Program, except in the Emergency Assistance Grant Program, is the responsibility of the homeowner with guidance from the Community Development staff, as requested by the homeowner. The selection of a general contractor in the HOME Owner-Occupied Rehabilitation Program will follow the City’s or the implementing agency’s procurement process, with bidding, awards and contract execution coordinated by the Community Development staff or the implementing agency. Rehabilitation work will be undertaken only through a written contract between the contractor and the homeowner receiving the assistance. The Community Development staff or the implementing agency will obtain a minimum of three (3) bids on the planned repairs if obtainable, based on the preliminary work write-up prepared by the City’s inspector or the implementing agency. The bids are to be returned to the designated located on the specific due date. The Community Development Division or the implementing agency will record the total amount of the bid and the date and time the bid was received. In the bidding process where multiple bids were sent out to the Elderly Home Repair and Limited Home Repair Rehabilitation Program approved contractors list and only one (1) bid was received on the project, if the bid is determine feasible and in line with Description of Work (DOW) estimate. The Community Development Division or the implementing agency will evaluate the bid documents to determine if the bids are eligible. Bids are considered eligible when the following conditions are met:

17. CONTRACTOR – The term “Contractor” applies to the firm bidding on work or receiving an award. The firm must hold a current Arkansas State General Contractor’s license. Contracts for Elderly Home Repair and Limited Home Repair Programs may be awarded to business vendors whose services are appropriate for the work begin done (i.e., roofing contractor, plumber or licensed electrician) but who may not necessarily be licensed general contractors. These vendors must have current licensure applicable to their specialty. • INSURANCE – Before commencing work, the contractor shall submit to the Community Development Division a current certificate of insurance as evidence of the coverage required. • The contractor shall carry or require that there be carried Workers’ Compensation Insurance for all employees and those of subcontractor engaged in work at the site in accordance with Arkansas State Workers’ Compensation Laws. • The contractor shall carry during the life of the contract Property Damage Insurance in the amount of not less than $100,000 to protect the contractor and subcontractor from claims for property damage which might arise from operations under their contract. • The contractor shall carry or require that there be carried General Liability Insurance. The City of Arkansas must be named as an additional insured under the general contractor’s protective coverage. The contractor must furnish the City of Little Rock, written notice of any change and/or cancellation of the required coverage no less than thirty (30) days before any such change is effective. Coverage will be verified by the Community Development Division before contract execution.

18. Online Bidding System

19. Little Rock Procure – Online Bidding System What does the Community Development Division use this for? Owner Occupied Rehab – CDBG & HOME Funds • Emergencies – Less than $10,000 • Limited Home Repairs – Less than $25,000 • Elderly Home Repair – Less than $35,000

20. Advertising Time

21. How Does the Online Bidding System Benefit the City of Little Rock Owner Occupied Program? • Outreach to more contractors (200 plus in database) • Repair times are shorten • Processing invoices are faster • Requisitions and PO’s are completed faster • Less Paperwork • Contractors can respond from their phones and not have to go back to the office.

22. How Does the Online Bidding System Benefit the City of Little Rock Owner Occupied Program? Units Completed using the Online Bidding System Compared to the previous bidding system. 2013– 65 units 2014 – 71 units 2015 – 74 units 2016 – 95 units 2017 – 102 units Each year we have increased the amount of units completed with Less amount of money received to complete our Owner Occupied Rehab activities!