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File #: 09-1184    Version: 1 Name: 12/21/09 2053 Newport Rehab Agreement
Type: Resolution Status: Passed
File created: 12/21/2009 In control: City Council
On agenda: 12/21/2009 Final action: 12/21/2009
Enactment date: 12/21/2009 Enactment #: R-09-492
Title: Resolution to Approve Housing Rehabilitation Agreement with Henry and Dorothy Owen for 2053 Newport ($36,613.00 HOME Funds)
Title
Resolution to Approve Housing Rehabilitation Agreement with Henry and Dorothy Owen for 2053 Newport ($36,613.00 HOME Funds)
Memorandum
Attached for your review and approval is a resolution to approve a second Housing Rehabilitation Agreement with Henry and Dorothy Owen to complete rehabilitation assistance to their home at 2053 Newport. The property was annexed to the City of Ann Arbor effective December, 2007.

On October 6, 2008 in Resolution #R-08-408, City Council approved a housing rehabilitation agreement in the amount of $30,832.00 with Henry and Dorothy Owen. The initial bid for this project was awarded to McHugh’s Home Improvement. To date, McHugh has drawn $21,899.00 in HOME project funds. After multiple instances of poor workmanship on this project including documented unprofessional behavior displayed by the contractor, McHugh’s Home Improvement was suspended for twelve (12) months from active participation as a vendor with the Housing Rehabilitation Program beginning October 2, 2009 and ending on October 2, 2010. The suspension notice was issued after the contractor failed to attend two mandatory mediations with the homeowner to create an action plan for resolving the workmanship issues. At this time, the housing rehabilitation project has not been completed and Community Development staff has moved forward with securing a new contractor and enforcing the liquidated damages policy in the housing program guidelines to recoup funding from McHugh’s Home Improvement. There is $8,933.00 available in the current HOME contract with McHugh’s Home Improvement that will be used to fund the corrective action repairs at 2053 Newport. In addition to the disciplinary action rendered by Community Development, it is anticipated that disciplinary action will be requested with the State of Michigan by the homeowner and Community Development.

The third phase of this housing rehabilitation project will address corrective action repairs and complete the u...

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