RENTAL INFORMATION

A listing of other subsidized apartment complexes is available from this office.

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RENTAL HOUSING REHABILITATION PROGRAM (RHRP)

The program is designed to assist investors/owners of rental properties that are rented to (or will be renting to) low- and moderate-income tenants at or below current fair market rents as established by HUD.

Key Points

1. The number of rental units assisted will be limited to two (2) per owner per program year.
2. The Applicant shall be subject to a Rental Control Agreement which assures that the monthly rent of the unit rehabilitated using CDBG funds remains affordable during the life of the loan or ten (10) years from completion of rehabilitation, whichever is greater, and shall not exceed more than 100% of the current HUD, Section 8 existing Fair Market Rent (FMR) limit for Hall County (see Appendix B).  If there are tenants at the time of rehab, the rent and utilities shall not be more than 30% of income.
3. Applicant will pay a non-refundable processing fee of $100.
4. The applicant will pay a minimum of one-half of the project rehabilitation cost.
5. All loans and grants must be reviewed and approved by the Loan Review Committee (LRC).  The Loan Review Committee (LRC) is composed of five (5) designees appointed by the City Council and Gainesville Non-Profit Development Foundation, Inc. Board and will meet as needed.
6. The total loan amount for each unit from all sources shall not exceed the FHA Mortgage Limits.  Minimum loan shall be $5,000.
7. The maximum allowable loan using federal, state, or local government funds in any one-year program allocation to any investor shall not exceed $40,000 in principal.
8. The low-interest loan shall not exceed $30,000 per housing unit or half of the actual cost of rehabilitation, whichever is less.
9. Bear interest at the rate of four percent (4%) per annum.
10. The term of loan shall be set by the Loan Review Committee and will be repayable over a time period of up to ten (10) years.
11. The loan repayments will begin 30 days after rehab is completed.
12. In the event of the death of the owner or the sale of the unit prior to expiration of the term, the balance of the loan will be due and immediately payable.
13. The loan balance will be due and payable immediately if the property is converted to non-residential use in less than ten years.
14. The principal of the low-interest loan may be prepaid at any time, but the unit will still be subject to all agreements signed.

Contractor Solicitation
Housing and Neighborhood Development (HND) will advertise for contractors who wish to be considered eligible to bid on Rehabilitation projects.  Following the advertisement, HND will hold an information conference to describe the program and distribute Contractor Registration Application Packages.  Contractors must complete and return the registration package, which includes: owner’s name, individual authorized to bid, credit history, previous job references, current city business license, all required state licenses, and proof of liability, auto and workman’s compensation insurance certificates.

After the initial advertisement for contractors, any licensed contractor who is interested in being eligible to bid may request an application from the office of HND.  Applications will be mailed and contractors will be required to visit, in person, with the Housing Coordinator to learn about the Rehabilitation Program.  All contractors who complete and return the application with the required documents will be placed on an approved contractor's list.

Home Inspection and Work Write Up
The Housing Coordinator will inspect the property with the owner(s) along with a building inspector from the City of Gainesville to determine if it is feasible to rehab the property.  At the time of inspection, photographs emphasizing rehabilitation needs will be taken, a work-write-up will be prepared and drawings made, if appropriate.  The work-write-up will become a part of the application and bid proposal.  Using the work-write-up, a cost estimate will be prepared and used as a guide.  If the house was built prior to 1978 a lead-based paint inspection will be ordered.  The Housing Coordinator will accompany the Lead Inspector while paint testing and risk assessment is performed.  A separate lead work-write-up will be prepared, if necessary.  Copies of the Lead Inspection/Risk Assessment and the lead work-write-up will be sent to the Georgia Department of Community Affairs (DCA) Lead Coordinator.  A copy of the Risk Assessment along with the “Summary Notice of Lead-Based Paint Risk” will be sent to the owner.  If appropriate, the Housing Coordinator will request Historic Preservation Clearance.

The repairs and work-write-ups will be discussed with the owner to obtain a mutually agreed upon work-write-up.  All code related items will be required to be brought up to local standards (2000 International Residential Code for One and Two Family Dwellings).  General property improvements may not exceed 40% of the rehab.

Bidding Process
Only after the Permission to Solicit Bid form has been received from the DCA Lead Coordinator and the owner has agreed upon the work to be performed will the project be released for bidding.  An Invitation to Bid is prepared and sent to the City of Gainesville Purchasing Department.  They will arrange to advertise in the local newspaper, The Times, and send bid packages to all approved contractors.  The ad shall provide instructions on how to receive a bid package, date and time the Pre-bid Conference will be held and when and where the bid opening will take place.

Contractors shall have not less than fifteen (15) days to prepare and submit sealed bids.  At some point during the first seven (7) days of the bidding period, a Pre-bid Conference will be held with the contractors to inspect the property.  The City of Gainesville’s Purchasing Department shall open all sealed bids, read aloud and record all bids received.  The Housing Coordinator will check contractors for City or HUD debarment.

The Housing Coordinator will prepare an Abstract of Bids form and send all bids received and the abstract to the property owner.  If bids are more than 20% over the cost estimate, all bids may be rejected and re-advertised.  The owner may select any of the approved contractors that submitted a bid; however, if the owner wishes to contract with an approved contractor that was not the low bidder, the owner must pay all costs in excess of the low bid from other than grant and/or loan funds.

Contract Award & Signing
Once loan approval has been obtained, a Pre-construction Conference will be held with the property owner, contractor, Housing Programs Manager, and Housing Coordinator to discuss general and special conditions and execute the Construction Contract, Rehab Agreement and Loan Documents.  During this meeting, Lead Based Paint procedure, Fair Labor Standards, Davis Bacon Rules, Health and Safety Standards and Copeland Anti-Kickback rules will be emphasized.  The contractor is required to provide copies of Lead Training Certificates for workers.  A notice to proceed is issued after the three- (3) day right to cancel expires.  All Security Deeds will be recorded in Clerk of Courts records.

Lead-Based Paint and Rehab Coordination
An application for Lead Liability Insurance is sent to DCA.  No lead work will be performed prior to insurance being secured.  The Housing Programs Manager, Housing Coordinator, contractor and owner will determine if temporary relocation at a hotel is required for all occupants by reviewing: incapacitation of plumbing, electrical or heating system in excess of 24 hours; whether occupancy constitutes an immediate danger to the health or safety of the person or the public; and abatement of lead-based paint work.  If temporary relocation is required, the Housing Coordinator will provide the owner advance written notice of: date and approximate duration of the temporary relocation, address of hotel and terms and conditions of stay (food and incidentals).  The General Contractor shall contact the Housing Coordinator at least 48 hours prior to any work performed by the lead sub-contractor.  The Housing Coordinator will contact a certified lead inspector who is an independent third party to perform a lead based paint clearance evaluation following the completion of lead work.  The Housing Coordinator will make an inspection of the property during the lead work to ensure proper safety procedures are being followed.  The clearance evaluation will take place as soon after the completion of the lead work as is practical.  No additional rehab may be done until the clearance evaluation is performed and passed.  If the house does not pass the clearance exam, the contractor shall be responsible for re-cleaning all applicable components and surfaces and pay for all additional clearance exams.  After receipt of a written “Passed” Lead-Based Paint Interim Control Clearance Evaluation, the Housing Coordinator notifies the General Contractor to continue with remaining rehab work.  The owner will not be permitted to return to the property until the clearance exam has been performed and passed.  A Summary Notice of Completion Lead-Based Paint Hazard Reduction Activity and Clearance Exam results are sent to the property owner.

Contractor Payment & Inspections
The Housing Coordinator will make timely inspections of the rehab project as needed and a Building Inspector will make inspections of the code and permit items.  The Building Inspector will be required to sign a Certificate of Final Inspection, which will be included with the request for final payment.  If there are any changes to the contract a Work-Write-Up Addendum (Change Order) will be executed.  The Change Order must be signed by the owner, contractor, and Housing Coordinator.  If the Change Order adds cost to the project, it will be paid for by the contingency.

No more than three partial payments will be paid to the contractor and only after receipt of the following signed documents: Contractor’s Invoice & Release of Liens & Warranty, Owner Satisfaction Statement, copies of inspection reports and a Release and Waiver of Claim for Subcontractor and/or Material Supplier.  Final payment will be made after completion of all items in the contract and receipt of the following signed documents: Certificate of Final Inspection, Affidavit of Final Release of Lien & Warranty – General Contractor, Release and Waiver of Claim for Subcontractor, copies of all manufacturers and suppliers written guarantee and warranties and Owner Satisfaction Statement.

Warranty
The Contractor shall be liable for all work performed under the terms of the contract for not less than one (1) year from the time of work acceptance.  If there is a deficiency that occurs within one (1) year, the owner must immediately contact the contractor and Housing Coordinator by telephone and in writing.  The Housing Coordinator will inspect all work performed under the contract prior to the expiration date of the one year warranty.