Title
Resolution to Approve Housing Rehabilitation Agreement with Michael Vliet at 5 W. Eden Court ($28,477.00 CDBG Funds)
Memorandum
Attached for your review and approval is a resolution to approve a Housing Rehabilitation Agreement with Michael Vliet to complete rehabilitation assistance to his home at 5 W. Eden Court.
This income-eligible applicant initially contacted Community Development in March, 2009 for assistance to repair a broken sewer drain that has caused flooding in the crawlspace of the property. The application for assistance was processed as an emergency priority due to the nature of the work required and approved by Community Development in March, 2009. The City will address the following housing rehabilitation work on this property: rebuild deck to code; install a new vinyl double hung window, install new block glass window with vent, dispose of contaminated water, soil, and debris, investigate sewer using video equipment to identify the length of the crack in the sewer pipe, install a new sewer pipe after video inspection, install a new ventilation system in the crawlspace, insulate crawlspace, rewire electric service to code, remove damaged carpet in living room, replace and refinish hardwood floors in living room.
On May 14, 2009, the Office of Community Development received three (3) bids for the housing rehabilitation project. The lowest bid amount was submitted by Blasiak Builders with a base bid of $25,888.00 to which a 10% contingency of $2,589.00 was added, bringing the total amount to $28,477.00. The $28,477.00 in CDBG funds will be provided in the form of a 0% interest, deferred payment loan to be repaid in full after 30 years or at the time the property changes ownership either by sale, gift, mortgage, land contract, conversion to rental property, inheritance or change of the use of the property from a single-family residence.
Community Development staff recommends that City Council approve the Housing Rehabilitation Agreement for the rehabilitation work with Michael Vliet in the amount of $28,477.00 in CDBG funds as a 0% interest, deferred payment loan for improvements to his home at 5 W. Eden Court. The project was approved by the Urban County Executive Committee at the May 19, 2009 meeting.
Staff
Prepared by: Damon E. Thompson, Operations Manager
Reviewed by: Mary Jo Callan, Community Development Director, Jayne Miller, Community Services Administrator
Approved by: Roger Fraser, City Administrator
Body
Whereas, An application was received from Michael Vliet for housing rehabilitation assistance for his owner-occupied dwelling located at 5 W. Eden Court;
Whereas, The homeowner meets the City's criteria for participation in the Housing Rehabilitation Program; and
Whereas, Three (3) bids were received on May 14, 2009, and Michael Vliet will be executing an agreement with Blasiak Builders, the lowest responsible bidder, which received Human Rights and Living Wage Approval on June 15, 2009, to complete the rehabilitation work;
RESOLVED, That City Council approve the Housing Rehabilitation Agreement with Michael Vliet in the amount of $28,477.00 in CDBG Funds as a 0% interest, deferred payment loan, to be repaid in full after 30 years or at the time the property changes ownership either by sale, gift, mortgage, land contract, conversion to rental property, inheritance, or change of the use of the property from a single-family residence;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute a Housing Rehabilitation Agreement with Michael Vliet consistent with this resolution, subject to approval as to substance by the City Administrator and approval as to form by the City Attorney with funds to be available without regard to fiscal year;
RESOLVED, That as a condition of loan disbursement, Michael Vliet will execute a mortgage and promissory note, subject to approval as to substance by the City Administrator and approval as to form by the City Attorney; and
RESOLVED, That the City Administrator, or his designee, be authorized to take necessary administrative actions and to execute any documents necessary to complete this transaction and to implement this resolution.