CCLME.ORG - DIVISION 1. HOUSING AND COMMUNITY DEVELOPMENT
Loading (50 kb)...'
(continued)
(7) complying with reporting requirements pursuant to section 8060; and
(8) meeting all other local entity requirements set forth in this subchapter.
(b) Local entities may employ consultants or other entities to perform any of the requirements specified in subdivision (a) of this section. The consultant or other entities designated to implement all or any portion of the program shall meet the standard specified in section 8042(a)(1). The local entity shall be responsible for ensuring that the actions of the consultants or other entities are in compliance with the requirements of this subchapter.


Note: Authority cited: Section 50668.5(g), Health and Safety Code. Reference: Section 50668.5(a), Health and Safety Code.









s 8046. Construction Requirements.
(a) The local entity shall determine the rehabilitation work to be performed on the property by conducting an initial property inspection. Upon such inspection, the local entity shall:
(1) prepare a work write-up which accurately describes the existing conditions and the necessary repairs and improvements consistent with the rehabilitation standards adopted by the local entity and approved by the department. The work write-up shall indicate which items are code violations, incipient code violations, handicapped accessibility improvements, and general property improvements; and
(2) prepare a cost estimate for the rehabilitation work, building permits, government fees and the costs of architectural and engineering services directly related to the rehabilitation work.
(b) The local entity shall ensure that the rehabilitation work funded pursuant to this subchapter shall be performed in a competent, professional manner at the lowest reasonable cost consistent with current market conditions. Except as outlined in subsection (g), the local entity shall solicit, at a minimum, three written bids based on a bid package distributed to potential contractors. Such bid package shall include:
(1) the work write-up which details the rehabilitation performance specifications;
(2) bid instructions which describe the local program requirements for construction;

(3) a bid proposal form which incorporates the work write-up; and
(4) a sample construction contract which has been approved by the department.
(c) The local entity shall evaluate submitted bids in relation to its cost estimate. If three written bids are not received, or the bids received are higher than its cost estimates, the local entity shall include an explanation in the deferred payment loan file documenting the process employed to determine the reasonableness of costs. The local entity shall review all bids with the borrower, and the borrower shall select a bid which would result in the work being performed in a competent, professional manner at the lowest reasonable cost consistent with current market conditions and the local entity's cost estimate.
(d) The local entity may include a contingency amount, not to exceed 10 percent of the selected bid amount or the maximum loan amount established pursuant to section 8048(a), to be used for unforeseen costs incurred in order to complete the rehabilitation as defined in this subchapter. Any unused contingency funds shall be returned to the department for deposit to the account, and shall be treated as a borrower payment to the deferred payment loan.
(e) The local entity shall ensure that all general contractors and subcontractors selected by the borrower are licensed by the California State Contractors Licensing Board and that they maintain Worker's Compensation and Employer's Liability insurance to the extent required by State law. The contractor selected shall complete the work in accordance with a construction contract executed between the contractor and the borrower and approved by the local entity. The construction contract shall, at a minimum, contain provisions which:
(1) require that the contractor complete the work in accordance with the contractor's bid, work plans and specifications, and applicable local, State, and Federal laws, regulations, and building codes;
(2) require the contractor to proceed with and complete the work in accordance with the approved work schedule;
(3) specify a total contract price consistent with the approved contractor's bid;
(4) provide for a method of payment to the contractor consistent with program requirements which may include progress payments and payment retentions;

(5) provide for a contractor contingency amount, if any;
(6) permit the local entity and the department and their designated agents and employees the right to inspect the property and all books, records and documents maintained by the contractor in connection with the work;
(7) obligate the contractor to warrant the work for a period of not less than one year;
(8) require that the contractor provide all lien releases and pay all amounts when due for labor, materials, supplies and equipment provided for completing the work; and
(9) provide for liquidated damages.
(f) The local entity shall monitor construction for compliance with the construction contract and program requirements, and establish practices to ensure that payments to the contractor are properly expended by, or on behalf of, the borrower. Such practices shall include:

(1) conducting on-site inspections of the rehabilitation work; and
(2) preparing progress inspection reports which authorize the issuance of payments to borrowers and contractors.
(g) The borrower may perform all or a part of the labor, or provide materials, necessary to rehabilitate his or her property if all of the following conditions are met:
(1) the cost of the rehabilitation work for the portion to be performed by the borrower is less than 90 percent of the local entity's cost estimate, exclusive of profit and overhead for the general contractor;
(2) proceeds from the deferred payment loan shall not be used to pay for materials for which no paid receipt is provided or for any borrower or non-contracted worker's labor;
(3) the borrower has entered into a written contract pursuant to subdivision (e) of this section with any subcontractor retained by the borrower; and
(4) the local entity has demonstrated to the department that it has the capacity to manage and supervise rehabilitation projects utilizing borrower labor or that it will contract with a consultant or other entity that has demonstrated the capability to operate borrower-performed rehabilitation activities. Prior to the approval of the first deferred payment loan utilizing borrower-performed rehabilitation activities, the local entity shall submit the following to the department for approval of its ability to ensure that the requirements of this program will be met when borrower-performed rehabilitation is involved:
(A) the extent of the local entity's past involvement in borrower-performed rehabilitation activities;
(B) evidence of local entity administrative funding in an amount adequate to ensure proper management of borrower-performed rehabilitation activities;
(C) the criteria used in determining a borrower's ability to perform rehabilitation work;
(D) the accounting system used for purchasing materials, disbursing loan funds, and conducting inspections of the rehabilitation work;

(E) provisions for completing the rehabilitation if a borrower fails to complete the project.


Note: Authority cited: Section 50668.5(g), Health and Safety Code. Reference: Sections 50668(a), 50668.5 and 50668.5(b), Health and Safety Code.









s 8047. Term of Loan.
(a) The initial loan term of a deferred payment loan to non-elderly borrowers shall be five years. In the case of elderly borrowers, deferred payment loans shall be due upon transfer of title to the property. Deferred payment loans to both elderly and non-elderly borrowers shall be due and payable if the borrower no longer occupies the property as his or her principal residence for reasons other than medical treatment or disability which require a temporary alternate residence.
(b) The department shall allow additional five-year terms to a non-elderly borrower, based on provided evidence which demonstrates that:
(1) the title to the property has not been sold or transferred except to the borrower's spouse or assumed by an eligible borrower as allowed in section 8051(a) and (d);
(2) the borrower continues to occupy the property as a principal residence; and
(3) the borrower's income is such that the deferred payment loan could not be repaid by refinancing from other sources without the borrower exceeding the ability to afford his or her housing costs. Such evidence may include income verifications and written rejections of refinancing applications from lending institutions which provide the reasons for rejection.
(c) A borrower seeking an extension shall do the following:
(1) submit a written request to the department for extension of the deferred payment loan;

(2) provide the evidence required in subdivision (b) of this section; and
(3) execute the documents required in section 8056(c).
(d) A loan extension shall be conditioned on amortized payments made by the borrower pursuant to section 8049(d).
(e) If a non-elderly borrower becomes elderly during the term of the deferred payment loan, the terms and conditions specified for elderly borrowers shall apply.


Note: Authority cited: Section 50668.5(g), Health and Safety Code. Reference: Sections 50660 and 50662, Health and Safety Code.









s 8048. Maximum Loan Amounts.
(a) The maximum amount of a deferred payment loan to a borrower shall be as follows:
(1) $20,000; or
(2) $30,000, when the rehabilitation involves one or more room additions, except that the total cost of room additions shall not exceed $10,000.
(b) Deferred payment loans shall be limited to the amount necessary to cover eligible costs which cannot otherwise be financed by other funds unless the local entity determines that:
the payment on, or costs of administration and processing of, a loan from other sources would cause the borrower to exceed the ability to afford his or her housing costs.
(c) Upon request by the local entity to the department, the maximum loan amounts established pursuant to subdivision (a) of this section shall be increased if the department determines that all of the following circumstances exist:
(1) the estimated rehabilitation costs are consistent with the lowest reasonable costs of similar projects in the same area meeting minimum rehabilitation standards and local building and land use requirements;
(2) an increase is necessary to correct health and safety defects or to meet handicapped accessibility standards; and

(3) the local entity has documented that no other funds are available for the rehabilitation work.


Note: Authority cited: Section 50668.5(g), Health and Safety Code. Reference: Sections 50010(b)(3), 50662, 50668.5(a) and 50668.5(b), Health and Safety Code.









s 8049. Interest Rate and Loan Repayments.
(a) Deferred payment loans shall bear simple interest of three percent per annum on the unpaid principal balance. Interest shall accrue on the deferred payment loan from the date on which the construction is completed and shall continue to accrue at such a rate until the deferred payment loan principal and interest are paid in full.
(b) The total amount of outstanding principal and interest shall be due and payable in full at the end of the loan term. A borrower may repay the entire deferred payment loan amount at any time without penalty.
(c) Upon request by the borrower, the department may approve a voluntary prepayment plan, either at loan closing or any time thereafter. The plan may allow for the periodic payment of interest, or principal and interest, prior to the end of the loan term, unless the administration and processing of such prepayments would exceed the department's processing cost. At the request of the borrower, the plan may be revised or cancelled without penalty.
(d) If the deferred payment loan is extended by the department pursuant to section 8047(b), the borrower shall be required to make amortized payments of interest, or principal and interest to the extent that:
(1) amortized payments when combined with other housing payments may equal, but not exceed the borrower's ability to afford his or her housing costs; or
(2) the administration and processing of such payments would not exceed the department's processing cost.


Note: Authority cited: Section 50668.5(g), Health and Safety Code. Reference: Sections 50662 and 50668.5(c), Health and Safety Code.









s 8050. Loan-to-Value Limits.
(a) The loan-to-value ratio of a deferred payment loan shall not exceed 90 percent of the value of the borrower's property calculated as follows:
(1) The loan-to-value ratio shall be calculated using: (a) the County Tax Assessor's current valuation of the property and (b) all indebtedness which will be senior to the deferred payment loan after the rehabilitation, plus the proposed deferred payment loan (hereinafter referred to as the "total indebtedness"). If the loan-to-value ratio exceeds 90 percent, then the loan-to-value ratio shall be calculated as set forth in (2) below.
(2) The loan-to-value ratio shall be calculated using: (a) the current estimated value of the property as determined by qualified local entity staff who have been given prior approval by the department to conduct property value analyses and (b) the total indebtedness. If the loan-to-value ratio exceeds 90 percent, then the loan-to-value ratio shall be calculated as set forth in (3) below. Any such staff analyses shall be accompanied by data showing current comparable sales in the market area.
(3) The loan-to-value ratio shall be calculated using; (a) a fee appraisal of the after rehabilitation value of the property and (b) only those liens which will be senior to the deferred payment loan, excluding senior citizen property tax deferral liens, plus the deferred payment loan. This loan-to-value ratio shall not exceed 90 percent of the after-rehabilitation value of the borrower's property. The appraisal shall be undertaken at the borrower's expense. The appraisal may be included as an eligible cost in the borrower's deferred payment loan. The appraisal shall take into consideration the estimated value of the rehabilitation to be completed on the property and shall:

(A) be prepared by an independent appraiser who:
(1.) has the knowledge and experience necessary to appraise residential property competently;
(2.) is aware of, understands, and correctly employs those recognized methods and techniques that are necessary to produce a credible appraisal; and
(3.) in reporting the results of the appraisal, communicates such analysis, opinion, and conclusion in a manner that is not misleading as to the true value and condition of the property.
(B) utilize all of the following methods to determine value:
(1.) sales of comparable properties; and
(C) include the pre-rehabilitation value.
(b) The department shall not accept any appraisal that does not conform to the provisions of subdivision (a)(3).

(c) Upon request by a local entity, the department may allow a loan-to-value ratio greater than 90 percent, but less than 100 percent as calculated pursuant to subdivision (a)(3), if the local entity provides evidence acceptable to the department that the following exist:
(1) rehabilitation which requires a deferred payment loan amount which would cause the loan-to-value ratio as calculated pursuant to subdivision(a)(3) to exceed 90 percent and
(2) the borrower has the ability to afford all payment obligations.
(d) If the local entity is lending additional funds for t he rehabilitation, regardless of the source, the local entity loans shall be recorded in a subordinate position to the deferred payment loan.


Note: Authority cited: Section 50668.5(g), Health and Safety Code. Reference: Section 50662, Health and Safety Code.









s 8051. Sales, Transfers, Encumbrances, and Assumptions.
(a) Deferred payment loans shall be due and repaid upon sale, conveyance, or transfer of the property or any interest therein, except in the case of the transfer of the property to a borrower's spouse as a consequence of marriage, dissolution of marriage, death, or unless assumed by an eligible borrower.
(b) The borrower shall not encumber, pledge, or hypothecate the property or any interest therein or portion thereof with liens which are recorded in a senior position to that of the deferred payment loan without the prior written approval of the department. The borrower shall cure any unapproved lien, charge, or assessment against the property as required by the department pursuant to section 8052(b). The department may subordinate the deferred payment loan and permit refinancing of existing liens or additional financing secured by the property to the extent that such financing does not exceed the loan-to-value ratio pursuant to section 8050(a) and (c).
(c) When a deferred payment loan is repaid, the loan agreement required pursuant to section 8056(b) shall be terminated, the deed of trust shall be reconveyed, and any other security documents shall be terminated.
(d) With prior approval of the department, the deferred payment loan may be assumed by a borrower who meets the eligibility requirements and who shall be subject to the requirements of this subchapter.


Note: Authority cited: Section 50668.5(g), Health and Safety Code. Reference: Section 50662, Health and Safety Code.









s 8052. Defaults on Borrower Loans.
(a) If a borrower or successor-in-interest breaches or violates any provision of (1) the loan agreement entered into pursuant to section 8056 (b), (2) the promissory note, (3) the deed of trust, (4) any other agreement pertaining to the deferred payment loan, or (5) these regulations, the department shall give written notice to the borrower to cure the breach or violation within a period of not less than 30 days from such notice. If the breach or violation is not cured to the satisfaction of the department within the specified time period, the department, at its option, may declare a default under the relevant document and seek legal remedies for the default which shall include the following:
(1) The department shall accelerate all amounts, including outstanding principal and interest, due under the deferred payment loan and demand immediate repayment. Upon a failure to repay such accelerated amount in full, the department shall proceed with a foreclosure in accordance with the provisions of the deed of trust; or
(2) The department may seek such other remedies as may be available under the relevant agreement or any law.
(b) The department may use any amounts available in the default reserve subaccount established pursuant to section 8062(a) for the purpose of curing or avoiding a borrower's default on the terms of the loan which jeopardize the department's security in the property.
(1) The payment or advance of funds from the default reserve subaccount to cure or avoid a borrower's default on the terms of a loan shall be solely within the discretion of the department. No borrower shall be entitled to payment of funds from the default reserve subaccount.
(2) All funds so advanced on behalf of the borrower shall become part of the deferred payment loan and, upon demand, due and payable to the department.
(3) If funds from the default reserve subaccount are used to assist a borrower to avoid a threatened default or foreclosure, the department shall take those actions necessary to prevent similar occurrences and to insure compliance with the terms of the applicable agreements. Such actions by the department shall include foreclosure or forced sale of the borrower's property.


Note: Authority cited: Section 50668.5 (g), Health and Safety Code. Reference: Section 50668.5 (b), Health and Safety Code.









s 8053. Application Process.
(a) The department shall issue a Notice of Funding Availability (NOFA) which specifies the total amount of funds available under the NOFA, the application requirements, the allocation of rating points, and the general terms and conditions of funding commitments. Applications in response to each NOFA will be accepted on a continuous basis and ranked at least quarterly.
(b) The maximum amount of funds available to a local entity under each NOFA shall be specified in the NOFA.
(c) The department shall process an application in accordance with the following schedule:
(1) Within 30 calendar days of receipt of an application, the department shall provide the applicant with written notice as to whether the application is complete pursuant to section 8054. If the application is not complete, the notice shall specify the information or documentation necessary to complete the application.
(2) Within 45 calendar days of notification that the application is complete, the department shall provide the applicant with written notice whether the application has qualified to be rated pursuant to section 8055 (c). If the application does not qualify for rating, the notice shall provide an explanation of the reasons for disqualification.
(3) Within 45 calendar days of providing notice that an application qualifies for rating, the department shall provide the local entity with written notice whether an application will be considered for funding and, if considered for funding, the scheduled date for that consideration. If an application is not considered for funding, the local entity shall be notified in writing, including an explanation of the rating and the reasons for denial.
(4) Within 10 working days after a local program has been considered for funding, the department shall provide the local entity with written notification of the decision. Local programs selected for funding shall be approved at loan amounts, terms and conditions specified by the department.
(d) The department shall allocate not less than 20 percent of the monies from the program to local programs in rural areas. If necessary the department may:
(1) issue a special NOFA for rural local programs; or
(2) reserve a portion of funds specified in each NOFA for rural local programs.


Note: Authority cited: Section 50668.5 (g), Health and Safety Code. Reference: Sections 50661 and 50668.5 (a), Health and Safety Code.









s 8054. Application Requirements.
(a) Applications for local program fund commitments shall be made on form HCD O-001, California Housing Rehabilitation Program for Owner-Occupied Housing (CHRP-O), Local Program Application, dated 8/90 as set forth in subdivision (c) of this section. This form is provided by the department.
(b) The local entity may apply for additional funds from the program once all previously committed deferred payment loan funds have been expended. Requests for additional fund commitments shall be made on form HCD O-001, California Housing Rehabilitation Program for Owner-Occupied Housing (CHRP-O), Local program Application, dated 8/90 as set forth in subdivision(c) of this section. This form is provided by the department. Applications for additional fund commitments shall be selected pursuant to section 8055 of this subchapter.
(c) Copy of form HCD O-001, California Housing Rehabilitation Program for Owner-Occupied Housing (CHRP-O), Local Program Application, dated 8/90.






















CALIFORNIA HOUSING REHABILITAITON PROGRAM

FOR OWNER-OCCUPIED HOUSING (CHRP-0)

LOCAL PROGRAM APPLICATION

California Department of Housing and Community Development

Division of Community Affairs, CHRP-O

P.O. Box 952054, 1800 Third Street, Sacramento, California 94252-3054

(916-323-3178

This application, if approved for funding, will be a part of your Standard Agreement with the department. All sections of this application, including Attachments and Exhibits must be complete and accurate.
PLEASE NOTE: When applying for additional funds, only those items which differ from the original application need be completed.
If there are any questions about the application, the process employed when appl ying for additional funding, or if you require technical assistance, please contact program staff at the above address or phone number.
SECTION I: APPLICATION SUMMARY
A. NAME OF APPLICANT: ____________________________________
B. APPLICANT ADDRESS: ____________________________________
C. CHIEF EXECUTIVE NAME AND TITLE: _______________________
D. CONTACT PERSON AND TITLE: _____________________________
E. TELEPHONE NUMBER: (___)___________ FAX NUMBER(___)________
F. LOCATION OF LOCAL PROGRAM:______________________________
G. AMOUNT OF FUNDS REQUESTED: LOAN FUNDS: $________________

(GRANT FUNDS: $________________
(UP TO 20% OFLOAN FUNDS)
H. ESTIMATED NUMBER OF HOUSEHOLDS TO RECEIVE CHRP-O LOANS: ______________________________
I. ESTIMATED TOTAL COAST OF REHABILITAITON PER HOUSEHOLD: _____________________________________
J. ESTIMATED AMOUNT OF CHRP-O FUNDS PER HOUSEHOLD: _____________________________________
SECTION II: APPLICANT INFORMATION
A. APPLICANT
1. The Applicant is a (check one):
[ ]City [ ]Redevelopment Agency

[ ]County [ ]Indian Reservation or Rancheria
[ ]Nonprofit Corporation [ ]Housing Authority
[ ]Other (specify)
2. Years organization has been involved in housing programs:
3. If applicant is a nonprofit corporation, attach IRS status, a copy of the corporation's most current tax return, and a statement of assets and liabilities. Label as "ATTACHMENT 1. NONPROFIT CORPORATION DOCUMENTS AND FINANCIALS."
4. Attach a description of the applicant;s experience and administrative skills for implementing a local housing rehabilitation program, using the following format:
Sources of Funds
Type of Program

Property Types
Dates
No. of Units
Funds Expended
Provide references from funding sources with whom you have worked in the programs noted above.
Include names, addresses and phone numbers of contacts. Label as "ATTACHMENT 2. APPLICANT QUALIFICATIONS."
B. SERVICE PROVIDERS (If you are retaining the services of a consultant, please provide the information below.
If the services of more than one consultant are being used, please attach additional sheets.)
Consultant Name: _____________________________________________________________

a. Address: __________________________________________________________________
b. Phone number: ( )________________________________________________________
Fax number: ( )______________________________________________________________
c. Contact Person: ___________________________________________________________
Title: ________________________________________________________________________
Attach a summary of each consultant's experience in housing rehabilitation and qualifications for providing the services for which you will contract and a copy of a letter of intent executed by the consultant. Contracted services may include loan underwriting and origination services; construction services for inspections, work write -ups, cost estimates; use of escrows and fund control services; and attorney fees. Label as "ATTACHMENT 3. CONSULTANT QUALIFICATIONS AND COMMITMENT."
SECTION III. LOCAL PROGRAM SUMMARY

A. GENERAL DESCRIPTION
1. Provide a map of the jurisdiction in which the CHRP -O program will operate, showing the location of the proposed service area or areas in which the program will be concentrated. Label as "ATTACHMENT 4. MAP."
2. Indicate if there are any special characteristics of the proposed local program area or areas of service which would have an adverse impact on the value of properties in the area, thereby affecting the security of the State's loans. (These would include any adverse environmental conditions, including, but not limited to, the presence of toxic wastes.) Label as "ATTACHMENT 5. LOCAL PROGRAM SERVICE AREA: SPECIAL CHARACTERISTICS."
3. Provide the following information regarding performance goals for all units to be rehabilitated using CHRP -O funds:

a. Indicate the estimated total number of owner-occupied ____ 100%
properties to be rehabilitated:
------
b. Of these, indicate the estimated number and percentage that _____ _____%

will be very low-income households:
------
c. Of these, indicate the estimated number and percentage that _____ _____%
will have three or occupied bymore bedrooms:
------


Indicate the reasons that the numbers stated above were chosen. (These could include reasons such as previous program experience, a demonstrated need for rehabilitation of three -bedroom units, or a large proportion of very low - income households in the proposed local program area or areas of service.) Label as "ATTACHMENT 6. REHABILITATION GOALS."
4. Indicate below the estimated amount and percentage of CHRP -O loan funds which will be utilized for the following types of eligible uses of funds pursuant to Section 8044 of the program regulations:

a. Rehabilitation work to correct code deficiencies: $_____ ____%
b. Rehabilitation work to correct incipient code deficiences: $_____ ____%
c. Construction of room additions: $_____ ____%

d. Rehabilitation work to ensure accessibility of the property $_____ ____%
to handicapped borrowers or dependents:
e. General property improvements: $_____ ____%
f. Loan origination costs: $_____ ____%
g. Building permits and related government fees: $_____ ____%
h. Architectural, engineering and other technical consultant $_____ ____%
services related to the property rehabilitations:


5. Provide a budget, detailing the local entity's costs to process CHRP -O loans, including the cost of processing individual loans. Also identify the amount of payments which will be received for each loan from any other source of funding which is leveraged with CHRP -O funds in the administration of the local program. Label as "ATTACHMENT 7. ADMINISTRATIVE BUDGET."
B. LOCAL PROGRAM DESIGN AND PROCESS
Describe the design and process of the proposed CHRP -O program and label as "ATTACHMENT 8. CHRP-O PROGRAM DESIGN." Include information about the following:
1. Marketing plan - Discuss proposed marketing for specific service areas and population. Include a copy of any established waiting list.
2. Screening procedures - Include a description of the criteria used in determining who will be placed on the local program waiting list, if any, and who will receive applications to apply for CHRP -O funds.
3. Pre -construction processes - Include the process for inspections, preparation of work write -ups and cost estimates.
4. Loan approval process - Include the methods of verifying income, credit history, mortgage liens, condition of title on the property, and value of property/appraisals for local and CHRP -O funds.
5. Fund disbursement procedures - Include the timeframes for disbursing funds to contractors.
6. Supervision of rehabilitation - Include construction management and monitoring and include how supervision of any owner -performed rehabilitation activities will differ from the supervision of construction performed by licensed contractors.

7. Construction completion - Include file close -out procedures.
C. TIMEFRAMES
State the anticipated timeframe for the CHRP -O program. This should include the date by which all loans made under this commitment will be submitted to the Department for approval, the date by which all projects will be in the construction phase, and the date by which all loan files will have been completed. Label as "ATTACHMENT 9. TIMEFRAMES."
D. STAFFING
Provide a list of the staff assigned to implement and operate each of the following phases of the CHRP -O program: fund disbursement; loan approval; loan processing; and inspection services. Include a job description of the overall duties of each person who will work on the CHRP -O program, and a description of related experience for each staff person listed. Label as "ATTACHMENT 10. STAFFING DESCRIPTION."
SECTION IV. LOCAL HOUSING NEEDS

A. LOCAL HOUSING NEED
1. Provide the information requested below for the areas in which you intend to operate the CHRP -O program.

a. Current estimated total owner-occupied properties: ____
b. Current estimated total owner-occupied properties needing ____
rehabilitation:
c. Total properties vacant for sale as reported in the 1980 census data: ____
d. Total owner-occupied properties as reported in the 1980 Census data: ____
e. Total owner lower-income households paying 25% or more of income for ____
monthly housing costs as reported in the 1980 census data:
f. Of the current estimated total owner-occupied properties, indicate ____
the estimated percentage that will need rehabilitation (b divided by
a):
g. Of the sum of the 1980 estimated total owner-occupied properties and ____
the 1980 total properties vacant for sale, indicate the estimated
percentage that were vacant for sale (c divided by the sum of d plus
c):
h. Of the total owner-occupied properties reported in the 1980 census, ____

indicate the percentage that were affordable (the difference of d ____
minus e, divided by d):


2. Submit any documentation supporting the data reported above and label as "ATTACHMENT 11. LOCAL HOUSING NEED."
B. LOCAL HOUSING PROGRAMS
1. Indicate the status of the local housing element of the General Plan.
a. Substantive compliance: _________________________________
(Substantive compliance is demonstrated by a letter from the Department which sets forth findings that the housing element adopted within the timeframes required by Section 65588 of the Government Code includes that substance essential to every requirement of Article 10.6, commencing with Section 65580, of Chapter 3 of Division 1 of Title 7 of the Government Code.)
b. Procedural compliance: ___________________________________

(Procedural compliance means that the local public entity has complied with all procedures required by law for the Department's review of a draft housing element, local adoption of the element, and submission of the adopted element to the Department.)
c. Not in compliance: ____________________________________
d. Not yet submitted to the department: ________________________________
2. Provide a copy of the most recent correspondence from the Department indicating the status of the housing element. If the local housing element is not in substantive compliance, the local agency may submit the current element and may receive an expedited review to determine its current status. Label as "ATTACHMENT 12. HOUSING ELEMENT STATUS."
3. Attach documentation, including applicable parts of the housing element or a letter from the jurisdiction in which the local program will operate, supporting the statements checked below. Label as "ATTACHMENT 13. LOCAL HOUSING PROGRAMS." Check all applicable statements:
a. The local program has received a commitment of financial or nonfinancial assistance from a local public entity.
b. The service area has received a commitment for financial or nonfinancial assistance in support of lower-income housing from a source other than a local public entity.
c. The local program is eligible for financial or nonfinancial assistance under a local public entity's program in support of lower -income housing, but has not received a commitment.
d. The service area is located in a city or the unincorporated area of a county that has programs in support of lower -income housing, but is ineligible for these programs.
e. None of the above apply.
C. Briefly discuss how the CHRP -O funds will be used to address the community's identified housing rehabilitation needs. Label as "ATTACHMENT 14. ADDRESSING REHABILITATION NEEDS."
SECTION V. SOURCES OF FUNDS

A. Identify other sources of rehabilitation loan or grant funds available in the service area that will be leveraged with a CHRP -O deferred payment loan and label as "ATTACHMENT 15. FUNDING SOURCES." Include the following information for each source:
1. Source of funds
2. Amounts available
3. Status of availability
4. Expiration dates
5. Evidence of funding
6. Terms and conditions
B. Describe the circumstances under which CHRP -O funds will be used alone or in combination with other available public or private funds. Include a specific description of all leveraging arrangements.

C. Attach letters of intent or support from each funding source listed in (a) above. Label as "ATTACHMENT 16. FUNDING SOURCE LETTERS."
SECTION VI. RESOLUTION AND CERTIFICATIONS
A. GOVERNING BOARD RESOLUTION
Attach the resolution, duly executed by the governing board of the local entity granting authority to make application to the department for a funding commitment from the CHRP -O. Label as "ATTACHMENT 17. GOVERNING BOARD RESOLUTION." A sample resolution is included in this application package as Exhibit B.
B. CERTIFICATIONS
Attach a certification signed by the Chief Executive of the local entity certifying that the information and statements provided in the application are true, accurate and complete to the best of the Chief Executive's knowledge. Label as "ATTACHMENT 18. CERTIFICATION AND COMMITMENT OF RESPONSIBILITY." A sample form is included in the application as Exhibit C.

SECTION VII. LEGISLATIVE REPRESENTATIVES
Indicate all Legislators who represent any portion of the proposed service area.

Members of the Assembly State Senators
District number:__________ District number:__________
Name:_____________________ Name:_____________________
District Address:_________ District Address:_________
City:_____________________ City:_____________________
District number:__________ District number:__________
Name:_____________________ Name:_____________________
District Address:_________ District Address:_________
City:_____________________ City:_____________________


SECTION VIII. EXHIBITS
Exhibit A - Attachment Checklist

Exhibit B - Local Entity Sample Resolution
Exhibit C - Local Entity Certification and Commitment of Responsibility
NOTE: Review your application and Attachments/Exhibits for completeness, as incomplete packages will not be rated.
EXHIBIT A
ATTACHMENT CHECKLIST
Check if Applicable
Check if Included
[ ] [ ] 1. NONPROFIT CORPORATION DOCUMENTS AND FINANCIALS
[ ] [ ] 2. APPLICANT QUALIFICATIONS
[ ] [ ] 3. CONSULTANT QUALIFICATIONS AND COMMITMENT

[ ] [ ] 4. MAP
[ ] [ ] 5. LOCAL PROGRAM SERVICE AREA: SPECIAL CHARACTERISTICS
[ ] [ ] 6. REHABILITATION GOALS
[ ] [ ] 7. ADMINISTRATIVE BUDGET
[ ] [ ] 8. CHRP -O PROGRAM DESIGN
[ ] [ ] 9. TIMEFRAMES
[ ] [ ] 10. STAFFING DESCRIPTION
[ ] [ ] 11. LOCAL HOUSING NEED
[ ] [ ] 12. HOUSING ELEMENT STATUS
[ ] [ ] 13. LOCAL HOUSING PROGRAMS

[ ] [ ] 14. ADDRESSING REHABILITATION NEEDS
[ ] [ ] 15. FUNDING SOURCES
[ ] [ ] 16. FUNDING SOURCE LETTERS
[ ] [ ] 17. GOVERNING BOARD RESOLUTION
[ ] [ ] 18. CERTIFICATION AND COMMITMENT OF RESPONSIBILITY
EXHIBIT B

(SAMPLE RESOLUTION)

RESOLUTION NO. ______

THE GOVERNING BOARD OF

__________________________________
(Title of Local Entity)

HEREBY AUTHORIZES THE SUBMITTAL OF AN APPLICATION FOR FUNDING. THE EXECUTION OF A STANDARD AGREEMENT AND ANY AMENDMENTS THERETO, AND ANY RELATED DOCUMENTS NECESSARY TO PARTICIPATE IN THE CALIFORNIA HOUSING REHABILITATION PROGRAM FOR OWNER-OCCUPIED HOUSING AND SECURE A COMMITMENT OF FUNDS FROM THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT.
WHEREAS
A. ______________________________(name of Local Entity), a California ___________________________________(type of Local Entity) organized and operated under the Constitution Housing Rehabilitation Program for Owner-Occupied Housing (hereinafter referred to as 'CHRP-O').
B. The California Department of Housing and Community Development (hereinafter referred to as the 'department') is authorized to make funds available for deferred payment loans for the purpose of financing housing rehabilitation and has issued a Notice of Funding Availability under CHRP-O.
C. The _______________________________________ (name of Local Entity) wishes to obtain from the department, a commitment of funds for the purpose of providing deferred payment loans to finance housing rehabilitation costs for eligible borrowers under a local housing rehabilitation program
IT IS NOW RESOLVED THAT:
1. The ___________________________ (name of Local Entity) shall submit to the department an application for participation in CHRP-O and to request a commitment of funds for the purpose of providing deferred payment loans to finance housing rehabilitation costs for eligible borrowers under a local housing rehabilitation program located in _________________________ (program location).
2. If the application is approved the ___________________ (name of Local Entity) is hereby authorized to enter into a standard agreement with the department for the purposes set forth in the application and approved by the department. It also may execute other instruments necessary or required by the department for participation in CHRP-O.
3. The ______________________________ (name of Local Entity) is further authorized to request amendments, including increases in fund commitments up to the maximum amounts approved by the department and to execute any and all documents required by the department to evidence and secure these amendments.
4. The _____________________ (name of Local Entity) authorizes _________________ (office of position titles of authorized person(s) to execute in the name of the____________________________ (name of Local Entity), the applicaiton, the standard agreement, and other documents necessary or required by the department for the participation in the CHRP-O, and any amendments thereto.
PASSED AND ADOPTED THIS ____ day of _______,19___, by the following vote:
AYES: ___ NAYS___ ABSTAIN: ___ ABSEMT: ___
The undersigned __________ (title of officer) of the ____________ (name of Local Entity) therefore named does hereby attest and certify that the foregoing is a true and full copy of a resolution of the Governing Board adopted at a duly convened meeting on the date above-mentioned, which has not been altered, amended or repealed.
________________________________________________________
Signature DATE

NOTE:
This is intended to be a model for resolutions authorizing loan applications. Applicants may use their own format if it contains substantially all the authorizations in the model.
EXHIBIT C

California Housing Rehabilitation Program

for Owner-Occupied Housing

LOCAL ENTITY CERTIFICATION AND COMMITMENT OF RESPONSIBILITY

Local Entity Name: _________________________________________
Location of Local Program: _________________________________
I, ___________________________________________, the official designated by the
(name) (title)

governing body, for the ___________________________, hereby
(Local Entity)

certify that if approved by the
department for a CHRP-O funding commitment, the ____________
(Local Entity)

assumes the resposibilities specified in the California Housing Rehabilitation Program regulations and certifies to the following:
(1) that the local legislative body has been notified of the intent to apply for CHRP-O funds to assist in the operation of a local housing rehabilitation program in their jurisdiction;
(2) that the local program proposed to this application complements the implementations of exhisting local housing programs to preserve and increase the suply of low- and moderate-income housing.
(3) that a survey of the local program service area has been completed and the information regarding the condition of the housing in the service area is accurate;
(4) that the local entity has commited to make available the financial and other assistance specified in this application and will not use the CHRP-O funds to reduce the level of funding that is or will be available for housing rehabilitaiton in the service area.
(5) that the local entity is committed to achievement of the performance standards specified in this application;
(6) that the information, statements, and attachments contained in this application are, to the best of my knowledge and belief, true and correct.
I authorize the Department of Housing and Community Development to contact any or all of the agencies listed in this application. All information contained in this application is acknowledged to be public information.

__________________________________________________________
Signature Title

__________________________________________________________
(Type Name) Date

(d) A complete application shall consist of the following:
(1) a fully completed form HCD O-001, California Housing Rehabilitation Program for Owner-Occupied Housing (CHRP-O), Local Program Application, dated 8/90, accompanied by all attachments applicable to the local program under consideration; and
(2) any other information the department may require in order to determine the eligibility of the proposed local program, to evaluate or rate the proposed local program, or to determine that the applicant is capable of implementing and operating the proposed local program.


Note: Authority cited: Section 50668.5(g), Health and Safety Code. Reference: Sections 50079, 50091, 50661 and 50668.5(a), Health and Safety Code.









s 8055. Local Program Selection.
(a) Local programs shall not be considered for funding unless the application demonstrates that all of the following conditions exist:
(1) the applicant is eligible pursuant to section 8042;
(2) all proposed uses of program funds are eligible pursuant to section 8044(a) and (b);

(3) the application is complete pursuant to section 8054(c); and
(4) the total amount of funds requested does not exceed the local program funding limit which is stated in the NOFA pursuant to section 8053(b).
(b) Local programs shall be funded according to the following procedure subject to the availability of funds:
(1) An application for a local program must receive a minimum of 60 points to be considered for funding. Local programs which are approved for funding shall be funded in the order they are rated.
(2) If two or more applications have the same number of points, the department shall first fund the local program for which a complete application was first submitted.
(c) Each local program considered for funding shall be rated using the following criteria and maximum possible rating points:
(1) The percentage of total properties occupied by very low-income households to be rehabilitated under the local program. (20 points)
(2) The percentage of total properties which contain three or more bedrooms to be rehabilitated under the local program. (20 points)
(3) Need for rehabilitation of owner-occupied properties as indicated in supporting documentation, which may include the local housing element. (20 points)
(4) The extent to which the proposed local program complements an existing housing program in the local jurisdiction in which the proposed local program is located. Points shall be allocated based upon the following criteria:
(A) The extent to which the city's, county's or city and county's housing element complies with the requirements of law. (10 points)
(B) The extent to which a local public entity is implementing other programs which promote the availability of affordable housing. (10 points)
(5) High ratio of other funds to be leveraged with program funds in the proposed local program. (20 points)

Maximum possible points 100


Note: Authority cited: Section 50668.5(g), Health and Safety Code. Reference: Sections 50105, 50668.5(a) and 50668.5(b), Health and Safety Code; and Section 65583, Government Code.









s 8056. Legal Documents.
(a) The department shall enter into a Standard Agreement with the local entity. This contract shall require the parties to comply with the regulations and provisions described in this subchapter. The Standard Agreement shall encumber monies from the account in an amount sufficient to fund the approved local program. The agreement shall also stipulate performance goals required for continued local program compliance and funding. The Standard Agreement shall contain, but not be limited to, provisions related to the following:

(1) the granting and cancellation of commitments of state funds to the local entity;
(2) local entity responsibilities for local program operation, including program timeframes, performance goals, marketing, loan processing, loan funding, construction monitoring, construction disbursement, report submissions, and loan file documentation;
(3) eligible uses of deferred payment loan funds for rehabilitation costs and grant funds for local program administration expenses;
(4) standards and processes for certification and decertification of the local entity's ability to approve borrower deferred payment loans;
(5) reporting requirements, including quarterly reports, pursuant to section 8060;
(6) local entity responsibility for the use of escrow companies and interest-bearing escrow accounts for the disbursement of loan funds and the use of other consultants providing third-party services necessary for local program administration;
(7) the criteria to be used in evaluating Prospective borrower eligibility for a deferred payment loan, including income, ownership, credit history, loan security, rehabilitation cost, and monthly housing expense;
(8) the loan approval process requiring that the local entity evaluate and document applications for deferred payment loans pursuant to section 8057; (continued)