HomeMy WebLinkAboutAttachment No. 1 CHDO AgreementAttachment No. 1
HOME CHDO FUNDING AGREEMENT BETWEEN
THE CITY OF NATIONAL CITY
AND
SAN DIEGO HABITAT FOR HUMANITY
COMMUNITY HOUSING CORPORATION, INC.
FOR CONSTRUCTION AND/OR REHABILITATION
OF SINGLE FAMILY RESIDENTIAL HOUSING
IN THE CITY OF NATIONAL CITY
This Agreement is entered into this 30th day of October, 2012, by and between the
City of National City ("CITY") and San Diego Habitat for Humanity Community Housing
Corporation, Inc, a California non-profit public benefit corporation ("SD-HFH").
RECITALS
A. WHEREAS, City of National City ("CITY") is a recipient of funds from the United
States Department of Housing and Urban Development (hereinafter "HUD"), pursuant to
Title II of the National Affordable Housing Act of 1990 (42 U.S.0 12701 et seq.) as
amended (hereinafter "ACT"); and
B. WHEREAS, CITY desires to plan for the new construction or rehabilitation of existing
housing to create affordable residential developments for the benefit of low- and
moderate- households, including certain pre -development activities as allowed under
HOME regulations; and
C. WHEREAS, SD-HFH has demonstrated development experience in National City and is
qualified to develop or rehabilitate and subsequently sell affordable single-family
residential housing and perform the other services as specified in this Agreement; and
D. WHEREAS, SD-HFH has been certified by CITY as an eligible Community Housing
Development Organization (hereinafter "CHDO") pursuant to the definition of such
organizations contained in 24 CFR 92.2; and
E. WHEREAS, both parties to this Agreement, SD-HFH and CITY, agree that they are
subject to the federal restrictions and qualifications listed in Title 24 of the Code of
Federal Regulations, Part 92 ("24 CFR 92"); and
F. WHEREAS, CITY allocated $650,000 of federal HOME funds on May 2, 2012 that may
be used for the construction and/or substantial rehabilitation of as yet not identified six
single-family (6) HOME assisted housing units ("Assisted Units") for Eligible
Households earning 80% of the Area Median Income for San Diego County or less; and
G. WHEREAS, in an effort to establish a continuous source of housing development
funding capacity for SD-HFH, CITY has elected to permit SDHFH to retain all net
proceeds from the sale of the rehabilitated units ("CHDO Proceeds"). As a further
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Attachment No. 1
condition of this Agreement, SD-HFH must use and restrict any and all CHDO Proceeds
for the production of additional units until six (6) Assisted Units are completed and sold
and the balance of CHDO Proceeds remaining after the completion of six units is
committed to developing affordable housing in National City. Upon cycling the balance
once, any other CHDO Proceeds will be unrestricted and not subject to HOME
requirements; and
H. WHEREAS, CITY has also elected for SD-HFH to income qualify households, originate
and process second mortgages for each qualifying household and prepare loan documents
including but not limited to a HOME regulatory agreement, deed of trust, and promissory
note to be by executed with the CITY as Beneficiary of each mortgage.
NOW, THEREFORE, in consideration of the mutual benefit to be derived
therefrom, CITY and SD-HFH agree to the following:
1. SD-HFH shall furnish all of the services as described in this Agreement and all
attachments incorporated by this reference.
2. CITY shall advance payment or reimburse eligible costs expended by SD-HFH in the
amount and pursuant to the conditions contained in this Agreement and all
subsequent/supplementary documents.
3. SD-HFH shall be responsible for the professional quality, technical accuracy, timely
completion and coordination of all reports and other services furnished by SD-HFH
under this Agreement, except that SD-HFH shall not be responsible for the accuracy of
information supplied by CITY.
4. Work to be Performed
A. SD-HFH agrees to fully perform the Work and develop the Project as described in
the Work Plan, attached hereto as Exhibit A and incorporated herein by reference
(the "Work"). CITY reserves the right to review and approve in advance all Work to
be performed by SD-HFH in relation to this Agreement. Any changes to the Work
Plan described in Exhibit A proposed by SD-HFH must be approved in advance by
the CITY, in writing, which approval shall not be unreasonably withheld, delayed or
conditioned.
B. After rehabilitation has been completed on each unit, the HOME Assisted Units will
be sold to an Eligible Household at the agreed upon sales price supported by a
certified appraisal at the time of sale. CITY will be the Beneficiary of a silent loan in
second lien position equal to the difference between the sales price, less any down
payment, and the amount of the first mortgage for which the Eligible Household has
been provided a bona fide lender approval. SD-HFH will be responsible for
complying with the loan guidelines and requirements under Exhibit I. SD-HFH will
prepare, process, and deliver to escrow a fully executed HOME Regulatory
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Agreement, Deed of Trust, and Promissory under Exhibit I for each assisted unit
sold to an Eligible Household.
5. Use of Funds
The CITY agrees to provide to SD-HFH $650,000 for work as specified in this
Agreement. In no instance shall the CITY be liable for any costs for the Work in excess
of this amount, nor for any unauthorized or ineligible costs. The CITY will administer
this allocation in accordance with the provisions of the HOME Final Rule, 24 CFR Part
92 and the Consolidated and Further Continuing Appropriations Act of 2012, P.L. 112-
55.
6. Conditions
SD-HFH agrees to comply with all conditions of this Agreement. SD-HFH's failure to
comply with these conditions may result in cancellation of this Agreement as expressly
provided for in this Agreement.
7. Method of Disbursement
A. SD-HFH agrees that it shall expend the funds for eligible costs within the time limits
specified by 24 CFR 92.502(c)(2) and this Agreement.
B. Project set-up and disbursement requirements for HOME Projects will be in
conformance with 24 CFR 95.502(b) and 24 CFR 92.502(c).
C. Project completion requirements for HOME projects will be in conformance with 24
CFR 92.502(d). Upon submittal of the final project drawdown request to CITY, SD-
HFH must provide to CITY a project completion report in a form and content to be
prescribed by CITY. In the event that the project completion report is not received by
CITY, CITY may suspend all project drawdowns not yet paid until the project
completion report is received and accepted.
D. In the event CITY determines funds were used for ineligible expenses, further
payments shall be withheld until the findings are resolved to the satisfaction of the
CITY.
8. Commencement and Term
This Agreement is effective upon execution by all parties. SD-HFH agrees that Work will
not commence, nor will any HOME related costs be incurred or obligated before CITY
executes this Agreement, SD-HFH completes all required environmental clearances, and
SD-HFH complies with the applicable conditions of this Agreement. SD-HFH agrees that
the Work will be completed by the date(s) specified in the Project Timeline, Exhibit B,
unless a written request for an extension is approved in advance of this date and in
writing by CITY; extensions will automatically be granted for circumstances outside the
control of SD-HFH, but in no case will extensions be permitted that will cause the project
not to be completed by June 30, 2014. Failure to complete the Work on time without a
written extension from CITY constitutes a material default of this Agreement by SD-
HFH.
9. Termination
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Attachment No. 1
A. CITY may terminate this Agreement for cause by giving fourteen (14) days written
notice to SD-HFH following the time allotted to cure violations per the provisions of
section 10 (B) of this Agreement. Cause shall consist of any violation of the
requirements of HOME or of any terms and/or conditions of this Agreement or upon
violation of any local, state or federal law or regulation, or upon the request of HUD.
Unless otherwise approved by the CITY, upon termination of this Agreement, SD-
HFH must complete all Work in progress and terminate any other activities that were
to be paid for with HOME funds. Any unexpended funds received by SD-HFH must
be returned to the CITY within fourteen (14) days of the Notice of Termination. A
rate of interest of six percent (6%) may be added to all funds due but not paid within
fourteen (14) days of the Notice of Termination. In the event of such termination,
CITY may proceed with the Work in any manner reasonably deemed proper by
CITY. The actual costs reasonably and actually incurred by CITY to perform the
remaining Work shall be deducted from any sum due SD-HFH under this Agreement,
and the balance, if any, will be paid by SD-HFH upon demand.
B. In the event that CITY notifies SD-HFH of its intention to terminate this Agreement
pursuant to 10 (A) above, CITY will allow SD-HFH a time period of 30 days, to be
specified in the notice of termination, for SD-HFH to cure or commence to cure the
violation to CITY's satisfaction provided that if the violation is as such that it cannot
be fully cured within said 30-day period, SD-HFH shall have such additional time as
may be reasonably necessary to cure such violation so long as SD-HFH proceeds
promptly after receipt of CITY's notification and proceeds diligently at all times to
complete said cure.
C. This Agreement is valid and enforceable only if sufficient funds are made available to
CITY by HUD for the purposes of this program. It is mutually agreed that if Congress
does not appropriate sufficient funds for the HOME Program, this Agreement will be
amended to reflect any reductions in funds. In addition, this Agreement is subject to
any additional restrictions, limitations, or conditions enacted by the Congress,
promulgated in federal regulations or any federal statute or federal regulation which
may affect the provisions, terms, or funding of this Agreement in any manner. The
CITY has the option to terminate this Agreement under the fourteen (14) day
cancellation clause or to amend the Agreement to reflect any reduction of funds.
10. Contractors and Subcontractors
A. SD-HFH may not enter into any agreement, written or oral, with any contractor which
has been deemed to be not eligible to receive HOME funds. A construction contractor
or subcontractor is not eligible to receive HOME funds if the construction contractor
is not properly licensed and in good standing with the State of California, Contractors
State License Board, is listed on the Federal Consolidated List of Debarred,
Suspended, and Ineligible Contractors, or is deemed an ineligible contractor by
CITY.
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B. CITY reserves the right to review and disapprove any contracts or agreements
executed by SD-HFH related to the Work over $25,000. Approval will be assumed
unless disapproval has been made within a one week period.
C. The agreement between SD-HFH and any construction contractor shall require the
construction contractor and its subcontractors, if any, to:
1. Perform the Work in accordance with federal, state, and local housing and
building codes as applicable.
2. Comply with applicable Labor Standards described in Paragraph 20 of this
Agreement. In addition to these requirements, all contractors and subcontractors
must comply with the applicable provisions of the California Labor Code;
3. Comply with the applicable Equal Opportunity Requirements described in
Paragraph 21 of this agreement;
4. SD-HFH shall comply with all of the provisions of the Workers' Compensation
Insurance and Safety Acts of the State of California, the applicable provisions of
Division 4 and 5 of the California Government Code and all amendments thereto;
and all similar State or federal acts or laws applicable; and shall indemnify, and
hold harmless CITY and its officers, and employees from and against all claims,
demands, payments, suits, actions, proceedings, and judgments of every nature
and description, including reasonable attorney's fees and defense costs presented,
brought or recovered against CITY or its officers, employees, or volunteers, for or
on account of any liability under any of said acts which may be incurred by
reason of any work to be performed by the SD-HFH under this Agreement
5. Maintain, if so required by law, unemployment insurance, disability insurance
and liability insurance in an amount to be determined by CITY (maximum
requirements in Paragraph 11 of this Agreement) which is reasonable to
compensate any person, firm, or corporation who may be injured or damaged by
the contractor or any subcontractor in performing the Work or any part of it.
11. Insurance
SD-HFH, at its sole cost and expense, shall purchase and maintain, and shall require its
subcontractor(s), when applicable, to purchase and maintain throughout the term of this
Agreement, the following checked insurance policies:
A. n If checked, Professional Liability Insurance (errors and omissions) with
minimum limits of $1,000,000 per occurrence.
B. Automobile Insurance covering all bodily injury and property damage incurred
during the performance of this Agreement, with a minimum coverage of
$1,000,000 combined single limit per accident. Such automobile insurance shall
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Attachment No. 1
include owned, non -owned, and hired vehicles ("any auto"). The policy shall
name CITY and its officers, agents and employees as additional insureds, and a
separate additional insured endorsement shall be provided.
C. Commercial General Liability Insurance, with minimum limits of $2,000,000 per
occurrence and $4,000,000 aggregate, covering all bodily injury and property
damage arising out of its operations under this Agreement. The policy shall name
the City and its officers, agents and employees as additional insureds, and a
separate additional insured endorsement shall be provided. The general aggregate
limit must apply solely to this "project" or "location".
D. Workers' Compensation Insurance in an amount sufficient to meet statutory
requirements covering all of SD-HFH'S employees and employers' liability
insurance with limits of at least $1,000,000 per accident. In addition, the policy
shall be endorsed with a waiver of subrogation in favor of CITY. Said
endorsement shall be provided prior to commencement of work under this
Agreement. If SD-HFH has no employees subject to the California Workers'
Compensation and Labor laws, SD-HFH shall execute a Declaration to that effect.
Said Declaration shall be provided to SD-HFH by CITY.
E. The aforesaid policies shall constitute primary insurance as to CITY, its officers,
employees, and volunteers, so that any other policies held by CITY shall not
contribute to any loss under said insurance. Said policies shall provide for thirty
(30) days prior written notice to CITY of cancellation or material change.
F. If required insurance coverage is provided on a "claims made" rather than
"occurrence" form, SHDFH shall maintain such insurance coverage for three
years after expiration of the term (and any extensions) of this Agreement. In
addition, the "retro" date must be on or before the date of this Agreement.
G. Insurance shall be written with only California admitted companies that hold a
current policy holder's alphabetic and financial size category rating of not less
than A VIII according to the current Best's Key Rating Guide, or a company
equal financial stability that is approved by CITY's Risk Manager. In the event
coverage is provided by non -admitted "surplus lines" carriers, they must be
included on the most recent California List of Eligible Surplus Lines Insurers
(LESLI list) and otherwise meet rating requirements.
H. This Agreement shall not take effect until certificate(s) or other sufficient proof
that these insurance provisions have been complied with, are filed with and
approved by CITY's Risk Manager. If does not keep all of such insurance
policies in full force and effect at all times during the terms of this Agreement,
CITY may elect to treat the failure to maintain the requisite insurance as a breach
of this Agreement and terminate the Agreement as provided herein.
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Attachment No. 1
I. All deductibles and self -insured retentions in excess of $10,000 must be
disclosed to and approved by CITY.
13. Inspections
A. CITY may inspect any Work performed hereunder to ensure that the Work is being and
has been performed in accordance with the applicable federal, state and/or total
requirements, the construction contract, and this Agreement. SD-HFH agrees to require
that all Work found by such inspections not to conform to the applicable requirements be
corrected, and to withhold payment to the construction contractor or subcontractor until it
is so corrected.
B. CITY reserves the right to inspect the property at any reasonable time during normal
business hours during the period of construction and throughout the period of
affordability.
14. Records
A. SD-HFH must maintain the following general program records for inspection by CITY,
and must upon request provide to CITY copies of:
1. Records of the efforts to maximize participation by the private sector, including
nonprofit corporations and for -profit corporations in all phases of the HOME program
(financing, development, construction, and management) as required by 24 CFR
Section 92.200;
2. Records which demonstrate that 100 percent (100%) of the homeownership assisted
units are occupied by households that qualify as low-income families, as required by
24 CFR Sections 92.217 and CITY's first time homebuyer program as may be used
for this project; and
3. Any other records necessary to determine that expenditures were made in accordance
with this agreement.
B. SD-HFH must maintain and provide copies to the CITY of the project -specific records
listed below for inspection by the CITY:
1. Records which demonstrate that the combination of governmental assistance to the
project is not any more than is necessary to provide affordable housing as specified in
24 CFR Section 92.250(b);
2. Records which demonstrate that the project meets the property standards specified in
24 CFR Section 92.251 and the CITY's first time homebuyer program as may be used
for this project; and
3. Records which demonstrate that the homeownership requirements of 24 CFR Section
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Attachment No. 1
92.254 for the applicable period of affordability. Records must be maintained for
each family assisted.
C. SD-HFH must maintain the following federal overlay records for inspection by CITY:
1. Records which demonstrate compliance with the Equal Opportunity and Fair Housing
requirements outlined in Paragraph 22 of this Agreement, including:
a. Data on the extent to which each racial and ethnic group and single head of
household (by gender of head of household) have applied for, participated in, or
benefited from, any program or activity funded in whole or in part with HOME
funds as required by 24 CFR Section 92. 508( a)(7)(i)(A);
b. Documentation of actions required by 24 CFR Section 92.508(a)(7)(i)(S)
undertaken to meet the requirements of 24 CFR Part 135 which implements
Section 3 of the Housing Development Act of 1968 (economic opportunities for
low -and very low-income persons), as amended (12 U.S.C. 1701u);
c. Documentation and data on the steps taken to implement outreach programs to
minority -owned and female -owned businesses, as required by 24 CFR Section
92.508(a)(7)(ii), including data indicating the racial/ethnic or gender character of
each business entity receiving a contract or subcontract of $25,000 or more paid,
or to be paid, with HOME funds, the amount of the contract or subcontract, and
documentation of SD-HFH's affirmative steps to assure that minority business and
women's business enterprises have an equal opportunity to obtain or compete for
contracts and subcontracts as sources of supplies, equipment, construction, and
services; and
d. Documentation of the actions SD-HFH has taken to affirmatively further fair
housing as required by 24 CFR Section 92.508(a)(7)(i).
2. Records indicating compliance with the affirmative marketing procedures and
requirements of 24 CFR Section 92.351;
3. Records which demonstrate compliance with environmental review requirements
outlined in 24 CFR Section 92.352 and 24 CFR Part 58;
4. Records which demonstrate compliance with the requirements for minimizing
displacement of persons, when utilizing HOME funds, as described in 24 CFR
Section 92.353 and Paragraph 23(1) of this Agreement. At a minimum, these shall
include project occupancy lists identifying the name and address' of all persons
occupying or moving into the real property on (a) the date the Application for funding
was submitted to the City if SD-HFH has site control, the date the City approves the
applicable site, and the name and address of all persons who have the right to return
to the project upon completion of rehabilitation;
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5. Records which demonstrate compliance with Labor Standards, as stated in Paragraph
21 of this Agreement and 24 CFR Section 92.354, including contract provisions and
payroll records;
6. Records concerning lead -based paint in accordance with Paragraph 23(8) of this
Agreement and 24 CFR Section 92.355;
7. If applicable, records which support any requests for waivers of the conflict of
interest prohibition as stated in 24 CFR Section 92.356;
8. Records of certifications of contractor qualifications as they relate to the licensing
and debarment and suspension requirement as stated in 24 CFR 92.350; and
9. Records which demonstrate compliance with flood insurance requirements discussed
in Paragraph 23(A) of this Agreement and 24 CFR Section 92.508 (a)(7)(1ii).
D. SD-HFH must maintain the following financial records for inspection by the CITY in
conformance with separate instructions:
1. Records of all account transactions, including deposits, disbursements, and balances;
2. Records supporting requests for disbursements of HOME funds and other information
required under 24 CFR Section 92.502;
3. Records of written agreements and monitoring required by 24 CFR Section 92.504;
4. Financial and related records as specified in 24 CFR Section 92.508; and
5. Records of all audits and resolution of audit findings.
E. If so directed by CITY upon termination of this Agreement, SD-HFH agrees to deliver all
records, accounts, documentation and all other materials relevant to the Work to CITY.
15. Outreach and Marketing
Marketing and outreach efforts will include the use of informational mailings, providing
information at City facilities, community organizations, places of worship, employment
centers, and fair housing groups, and providing periodic information sessions on the
program. Outreach will include notification of program availability. Marketing brochures
and pamphlets will at a minimum include the following information:
1. basic eligibility criteria, i.e. income restriction, owner occupancy, etc.
2. the statement "the program is provided without regards to race, color, religion,
sex, national origin, handicap, or familial status."
3. include the use of the Equal Housing Opportunity logotype
4. program description
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5. loan terms
During the period of the Work, the CITY may place on the property signs stating that the
HOME Program is providing financing. If SD-HFH places any signs, it must indicate in
typeface and size commensurate with its funding that the CITY and HUD are a source of
financing through the HOME Program. Failure to do so is a material default of this
Agreement.
16. Reporting Requirements
Commencing with the effective date of this Agreement and continuing through the
acceptance of the project completion report, no later than thirty (30) days after the end of
each calendar quarter SD-HFH must submit a performance report to CITY on letterhead of
the SD-HFH and describing the progress during the previous quarter and outlining
anticipated upcoming key steps.
17. Audit Retention and Inspection of Records
A. All records, accounts, documentation and other materials deemed relevant to the Work by
CITY must be accessible at any reasonable time during normal business hours to the
authorized representatives of CITY or federal government, on reasonable prior notice for
the purpose of examination or audit.
B. An expenditure which is not authorized by this Agreement or which cannot be adequately
documented must be disallowed, and funds must be reimbursed within thirty (30) days of
the discovery to the CITY by SD-HFH, unless CITY approves in writing an alternative
repayment plan.
C. The determination by CITY of the allowability of any expenditure will be final.
D. Pursuant to 24 CFR Part 44 and OMS Circular A-133, SD-HFH must perform an annual
audit at the close of each fiscal year in which this Agreement is in effect. The audit
should be performed following generally accepted government auditing standards
(GAGAS). The audit reports shall be made up of at least the following three parts:
1. The financial statements and a schedule of federal awards and the auditor's report on
the statements and the schedule;
2. A written report of the independent auditor's understanding of the internal control
structure and the assessment of control risk; and
3. The auditor's report on compliance.
F. The audit must be performed by a qualified independent auditor. SD-HFH shall notify
CITY of the auditor's name and address immediately after the selection has been made.
F. SD-HFH must submit one copy of all required audit reports to CITY within seven
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months from the close of the required audit period addressed to:
City of National City
Housing and Grants
Attn.: Jim Ridley
1243 National City Blvd.
National City, CA 92139
G. SD-HFH is responsible for the completion of audits and all costs of preparing audits.
H. If there are audit findings, SD-HFH must submit a detailed response for each audit
finding to CITY. The CITY will review the response and, if in agreement, the audit
process will end and CITY will notify SD-HFH in writing. If CITY is not in agreement,
SD-HFH will be contacted in writing and told what corrective actions must be taken.
This action could include the repayment of disallowed costs or other remediation.
I. SD-HFH must retain all books and records relevant to this Agreement for a minimum of
five (5) years after the expiration of the Agreement and any and all amendments hereto,
or for three years after the conclusion or resolution of any and all audits or litigation
relevant to this Agreement, whichever is later. The CITY and HUD and/or their
representatives must have unrestricted access to all locations, books and records for the
purpose of monitoring, auditing or otherwise examining said locations, books and
records, with or without prior notice.
18. Compliance with State Law and Regulations
SD-HFH agrees to comply with all state laws and regulations that pertain to the sale of real
estate, construction, health and safety, hazardous substances, labor, fair employment
practices, equal opportunity and all other matters applicable to SD-HFH, its subrecipients,
contractors, or subcontractors, or the Work.
19. Compliance with Federal Laws and Regulations
SD-HFH agrees to comply with all federal laws and regulations applicable to HOME and to
the Work, and with the required federal provisions set forth in this Agreement.
20. Environmental Requirements
This Agreement is subject to the provisions of the National Environmental Policy Act
(NEPA) as contained in 24 CFR Part 58.
As this project is refined and proceeds, and prior to the acquisition of any property for
development or rehabilitation, SD-HFH shall cooperate with the CITY in the preparation and
completion of all appropriate environmental documents, to include the research and,
compilation of documentation, maintaining environmental files, performing site reviews, and
publishing of legal notices. The CITY shall be responsible for review and approval of the
environmental documents and process and making the determination whether the information
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is in compliance with NEPA environmental requirements.
The approval of the project set-up report and release of program funds by HUD is expressly
conditioned upon performance of the NEPA review work performed by SD-HFH and the
CITY in a manner which is deemed satisfactory and acceptable by HUD.
21. Labor Standards
All new construction or rehabilitation projects with 12 or more units assisted with HOME
funds shall comply with HUD requirements pertaining to such contracts and the applicable
requirements of the regulations of the Department of Labor under 29 CFR Parts 3 and 5,
governing the payment of wages and the ratio of apprentices and trainees to journey persons,
provided that if wage rates higher than those required under such regulations are imposed by
State or local law, nothing hereunder is intended• to relieve SD-HFH or any
contractor/subcontractor of their obligation, if any, to require payment of the higher rates.
This project will be a self-help project with all applicable restrictions. When applicable, SD-
HFH shall cause or require to be inserted in full, in all such contracts in excess of $2,000 and
subject to such regulations, provisions meeting the requirements of 29 CFR Section 5.5.
22. Equal Opportunity Requirements
A. The Civil Rights, State, and Age Discrimination Acts Assurances:
During the performance of this Agreement SD-HFH assures that no otherwise qualified
person shall be excluded from participation or employment, denied program benefits, or
be subjected to discrimination based on race, color, national origin, sex, age, handicap,
religion, or religious preference, under any program or activity funded by this
Agreement, as required by Title VI of the Civil Rights Act of 1964, the Fair Housing Act
(42 U.S.C. 3601-20) and all implementing regulations, and the Age Discrimination Act
of 1975, and all implementing regulations.
B. Rehabilitation Act of 1973 and the "504 Coordinator":
SD-HFH further agrees to implement the Rehabilitation Act of 1973, as amended, and its
regulations, 24 CFR Part 8, including but not limited to, ensuring that no otherwise
qualified individual shall, solely by reason of his or her handicap, be excluded from
participation (including employment), denied program benefits, or subjected to
discrimination under any program or activity receiving federal funds. SOHFH shall
designate a specific person charged with local enforcement of this Act, as the "504
Coordinator," if SD-HFH has fifteen (15) or more permanent full -or part time employees.
Notices may be sent to:
Section 504 Coordinator
San Diego Habitat for Humanity
Community Housing Corporation, Inc.
10222 San Diego Mission Road
San Diego, California 92108
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Attachment No. 1
E. Training, Employment, and Contracting Opportunities for Business and Lower Income
Persons Assurance of Compliance:
1. The Work to be performed under this Agreement is on a project or projects assisted
under a program providing direct federal financial assistance from HUD and are
subject to the requirements of Section 3 of the Housing and Urban Development Act
of 1968, as amended, 12 U.S.C. 1701u. Section 3 requires that to the greatest extent
feasible, opportunities for training and employment be given to lower income
residents of the project area and contracts for Work in connection with the project be
awarded to business concerns which are located in, or owned in substantial part by
persons residing in the area of the project.
2. The parties to this Agreement will comply with the provisions of said Section 3 and
the regulations issued pursuant thereto by the Secretary of HUD set forth in 24 CFR
Part 135, and all applicable rules and orders of the State issued thereunder prior to the
execution of this Agreement. The parties to this Agreement certify and agree that they
are under no contractual or other disability which would prevent them from
complying with these requirements.
3. SD-HFH will send to each labor organization or representative of workers with which
it has a collective bargaining agreement or other contract or understanding, if any, a
notice informing the said labor organization or worker's representative of SD-HFH's
commitments under the Section 3 clause and shall post copies of the notice in
conspicuous places available to employees and applicants for employment or training.
4. SD-HFH will include these Section 3 clauses in every contract and subcontract for
Work in connection with the project over $25,000 and will. at the direction of the
CITY, take appropriate action pursuant to the contract upon a finding that SD-HFH or
any contractor or subcontractor is in violation of regulations issued by the Secretary
of HUD, 24 CFR Part 135, and will not let any contract unless SD-HFH or contractor
or subcontractor has first provided it with a preliminary statement of ability to
comply with the requirements of these regulations.
5. Compliance with the provisions of Section 3, the regulations set forth in 24 CFR Part
135, and all applicable rules and orders of the CITY issued thereunder prior to the
execution of the Agreement shall be a condition of the federal financial assistance
provided to the project, binding upon SD-HFH, its successors, and assigns. Failure to
fulfill these requirements shall subject SD-HFH, its contractors and subcontractors,
its successors, and assigns to those sanctions specified by the Agreement through
which federal assistance is provided, and to such sanctions as are specified by 24
CFR Part 135.
D. State Nondiscrimination Clause:
1. During the performance of this Agreement, SD-HFH and its subcontractors shall not
unlawfully discriminate, harass, or allow harassment against any employee or
HOME CHDO Funding Agreement Page 13 of 21
Attachment No. 1
applicant for employment because of sex, race, color, ancestry, religious creed,
national origin, physical disability (including HIV and AIDS), medical condition
(cancer), age, or marital status. SD-HFH and subcontractors must ensure that the
evaluation and treatment of their employees and applicants for employment are free
from such discrimination and harassment. SD-HFH and Subcontractors must comply
with the provisions of the Fair Employment and Housing Act (Government Code,
Section 12900 et seq.) and the applicable regulations promulgated thereunder
(California Code of Regulations, Title 2, Section 7285.0 et seq.). The applicable
regulations of the Fair Employment and Housing Commission implementing
Government Code, Section 12990 (a-f), set forth in Chapter 5 of Division 4 of Title 2
of the California Code of Regulations are incorporated into this Agreement by
reference and made a part hereof as if set forth in full. SD-HFH and its
subcontractors shall give written notice of their obligations under this clause to labor
organizations with which they have a collective bargaining or other agreement.
2. SD-HFH must include the nondiscrimination and compliance provisions of this
clause in all subcontracts to perform Work under the Agreement.
3. Americans with Disabilities Act (ADA) of 1990
By signing this Agreement, SD-HFH assures CITY that it complies with the
Americans with Disabilities Act (ADA) of 1990 (42 U.S.C. 12101 et seq.), which
prohibits discrimination on the basis of disability, as well as all applicable regulations
and guidelines issued pursuant to the ADA.
E. Assurance of Compliance with Requirements Placed on Construction Contracts of
$10,000 or more:
SD-HFH hereby agrees to place in every contract and subcontract for construction
exceeding $10,000 a copy of Executive Order 11246, including the "Standard Equal
Employment Opportunity Construction Contract Specifications." SD-HFH furthermore
agrees to insert the appropriate goals and timetables issued by the U.S. Department of
Labor in such contracts and subcontracts as required by Executive Order 11246.
23. Other Required Federal Provisions
A. Flood Disaster Protection:
This Agreement is subject to the requirements of the Flood Disaster Protection Act of
1973 (P. L. 93-234). No portion of the assistance provided under this Agreement is
approved for acquisition, rehabilitation, or construction purposes as defined under
Section 3(a) of said Act, for use in an area identified by the Secretary as having special
flood hazards which is located in a community not then in compliance with the
requirements for participation in the National Flood Insurance Program pursuant to
Section 201(d) of said Act. The use of any assistance provided under this Agreement for
such acquisition, rehabilitation, • or construction in such identified areas in communities
then participating in the National Flood Insurance Program shall be subject to the
HOME CHDO Funding Agreement Page 14 of 21
Attachment No. 1
mandatory purchase of flood insurance requirements of Section 102(a) of said Act.
Any contract or agreement for the sale, lease, or other transfer of land acquired, cleared
or improved with assistance provided under this Agreement shall contain, if such land is
located in an area identified by the Secretary as having special flood hazards and in
which the sale of flood insurance has been made available under the National Flood
Insurance Act of 1968, as amended, 42 U.S.C. 4001 et seq., provisions obligating the
transferee and its successors or assigns to obtain and maintain, during the ownership of
such land, such flood insurance as required with respect to financial assistance for
acquisition or construction purposes under Section 102(s) of the Flood Disaster
Protection Act of 1973. Such provisions shall be required notwithstanding the fact that
the construction on such land is not itself funded with assistance provided under this
Agreement.
B. Lead -Based Paint Hazards:
Assistance provided under this Agreement is subject to 24 CFR Part 92 as well as subject
to the HUD Lead -Based Paint regulations, 24 CFR Part 35. Funding commitments made
by the CITY or SD-HFH shall be made subject to these provisions for HOME -assisted
housing constructed prior to 1978. SD-HFH shall be responsible for notification, testing,
abatement activities and project clearance.
C. Compliance with Air and Water Acts:
This Agreement is subject to the requirements of the Clean Air Act, as amended, 42 USC
1857 et seq., the Federal Water Pollution Control Act, as amended, 33 USC 1251 et seq.,
and the regulations of the Environmental Protection Agency (hereinafter "EPA") with
respect thereto, at 40 CFR Part 15, as amended from time to time.
SD-HFH shall insert or cause to be inserted in full in all contracts and subcontracts with
respect to any nonexempt transaction under this Agreement, the following requirements:
1. A stipulation by the contractor or subcontractor that any facility to be utilized in the
performance of any nonexempt contract or subcontract is not included on the List of
Violating Facilities issued by the EPA pursuant to 40 CFR Section 15.20;
2. A stipulation that the contractor comply with all the requirements of Section 114 of
the Clean Air Act, as amended (42 USC 1857c-8), and Section 308 of the Federal
Water Pollution Control Act, as amended (33 USC 1318), and all regulations and
guidelines issued thereunder relating to inspection, monitoring, entry, reports, and
information;
3. A stipulation that as a condition for the award of the contract, prompt notice will be
given of any notification received from the Director, Office of Federal Activities,
EPA, indicating that a facility utilized or to be utilized for the contract is under
consideration to be listed on the EPA List of Violating Facilities; and
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Attachment No. 1
4. A stipulation that all contractors will include or cause to be included the criteria and
requirements in paragraphs (a) through (c) of this section in every nonexempt
subcontract and that the contractor will take such action as the government may direct
as a means of enforcing such provisions.
In no event shall any assistance provided under this Agreement be utilized with
respect to a facility which has given rise to a conviction under Section 113(c)(1) of
the Clean Air Act or Section 309(c) of the Federal Water Pollution Control Act.
D. Obligations of SD-HFH with Respect to Certain Third Party Relationships:
SD-HFH shall remain fully obligated under the provisions of the Agreement
notwithstanding its designation of any third party or parties for the undertaking of all or
any part of the program for which assistance is being provided under this Agreement.
SD-HFH shall comply with all lawful requirements of the National Environmental Policy
Act of 1969 (NEPA) necessary to ensure that the program is carried out in accordance
with the environmental responsibilities under 24 CFR Section 92.352.
E. Interest of Certain Federal Officials:
No member of or delegate to the Congress of the United States and no resident
commissioner, shall be admitted to any share or part of this Agreement or to any benefit
to arise from the same.
F. Interest of Members, Officers, or Employees of CITY, Members of Local Governing
Body, or other Public Officials:
No member, officer, or employee of the CITY and/or SD-HFH, or their designees or
agents, no member of the governing body of the locality in which the program is
situated, and no other public official of such locality or localities who exercise any
functions or responsibilities with respect to the program during his/her tenure or for
one year thereafter, may have any interest, direct or indirect, in any contract or
subcontract, or the proceeds thereof, for Work to be performed in connection with
the program assisted under the Agreement SD-HFH shall incorporate, or cause to
be incorporated, in all such contracts or subcontracts a provision prohibiting such
interest pursuant to the purposes of this section. Fulfillment of sweat equity
obligations as defined in Section 8201 of the HOME regulations will not be
considered a violation of this prohibition.
G. Certification Regarding Lobbying
SD-HFH will require that the language of this certification be included in the award
documents for all subawards at all tiers (including subcontracts, subgrants, and contracts
under grants, loans, and cooperative agreements) and that all subrecipients shall certify
and disclose accordingly.
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Attachment No. 1
This certification is a material representation of fact upon which reliance was placed
when this transaction was made or entered into. Submission of this certification is a
prerequisite for making or entering into this transaction imposed by Section 1352, Title
31, U.S. Code. Any person who fails to file the required certification shall be subject to a
civil penalty of not less than $10,000 and no more than $100,000 for such failure.
"The undersigned certifies, to the best of his or her knowledge and belief, that:
1. No federal appropriated funds have been paid or will be paid, by or on behalf of the
undersigned, to any person for influencing or attempting to influence an officer or
employee of an agency, a Member of Congress, an officer or employee of Congress,
or an employee of a Member of Congress in connection with the awarding of any
Federal contract, the making of any federal grant, the making of any federal loan, the
entering into of any cooperative agreement, and the extension, continuation, renewal,
amendment, or modification of any federal contract, grant, loan, or cooperative
agreement; and
2. If any funds other than federally appropriated funds have been paid or will be paid to
any person for influencing or attempting to influence an officer or employee of any
agency, a Member of Congress, an officer or employee of Congress-, or an employee
of a Member of Congress in connection with this federal contract, grant, loan, or
cooperative agreement, the undersigned shall complete and submit Standard Form-
LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions."
H. Prohibition Against Payments of Bonus or Commission:
The assistance provided under this Agreement shall not be used in the payment of any
bonus or commission for the purpose of obtaining State or CITY approval of ,the
application for such assistance, or State or CITY approval of the applications for
additional assistance, or any other approval or concurrence of the State required under
this Agreement, Title II of the Cranston -Gonzalez National Affordable Housing Act of
1990, or state regulations with respect thereto; provided, however, that reasonable fees
for bona fide technical, consultant, managerial or other such services, other than actual
solicitation, are not hereby prohibited if otherwise eligible as program costs.
I. Federal Relocation, Displacement and Acquisition:
If applicable, prior to project set-up, SD-HFH shall provide the CITY with a project
specific relocation plan and a certification that it will comply or has complied with the
federal relocation, displacement and acquisition rules governing the HOME program,
which are contained in the Uniform Relocation Act, 49 CFR Part 24, and applicable
program regulations. 24 CFR Section 92.353 requires that tenants who are displaced from
housing units demolished or converted as a result of HOME funded activities be provided
with relocation assistance.
J. Drug -Free Workplace:
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Attachment No. 1
By signing this Agreement, SD-HFH hereby certifies under penalty of perjury under the
laws of the State of California that SD-HFH will comply with the requirements of the
Drug -Free Workplace Act of 1990 (Government Code, Section 8350 et seq.) and will
provide a drug -free workplace by taking the following actions:
1. Publish a statement notifying employees that the unlawful manufacture, distribution,
dispensing, possession, or use of a controlled substance is prohibited in the workplace
and specifying the actions that will be taken against employees for violation of such
prohibition;
2. Establish an ongoing drug -free awareness program to inform employees about:
a. the dangers of drug abuse in the workplace;
b. the policy of maintaining a drug -free workplace;
c. any available drug counseling, rehabilitation, and employee assistance programs;
and
d. the penalties that may be imposed upon employees for drug abuse violations
occurring in the workplace;
3. Make it a requirement that each employee to be engaged in the performance of the
HOME award be given a copy of the statement required by paragraph (1);
4. Notify the employee in the statement required by paragraph (1) that, as a condition of
employment under the HOME award, the employee will:
a. abide by the terms of the statement; and
b. notify the employer in writing of his or her conviction for a violation of a criminal
drug statute occurring in the workplace no later than five calendar days after such
conviction;
5. Notify the City in writing, within five (5) calendar days after receiving notice under
paragraph (4 )(b) from an employee or otherwise receiving actual notice of such
conviction. Employers of convicted employees must provide notice, including
position title, to the loan officer or other designee on whose project the convicted
employee was working, unless the CITY has designated a central point for the receipt
of such notices. Notice shall include the identification number(s) of each affected
project;
6. Take one of the following actions, within thirty (30) calendar days of receiving notice
under paragraph (4)(b), with respect to any employee who is so convicted:
HOME CHDO Funding Agreement Page 18 of 21
Attachment No. 1
a. Take appropriate personnel action against such an employee, up to and including
termination, consistent with the requirements of the Rehabilitation Act of 1973, as
amended; or
b. Require such employee to participate satisfactorily in a drug abuse assistance or
rehabilitation program approved for such purposes by a Federal, State, or local
health, law enforcement, or other appropriate agency;
7. Make a good faith effort to continue to maintain a drug -free workplace through
implementation of this section.
Failure to comply with these requirements may result in suspension of payments
under the Agreement or termination of the Agreement or both and SD-HFH may be
ineligible for award of any future CITY contracts if CITY reasonably determines that
any of the following has occurred: SD-HFH 1) had knowingly made a false
certification, or 2) knowingly violated the certification by intentionally failing to
carry out the requirements as noted above.
24. City Coordinator
The coordinator of this Agreement for the CITY is Jim Ridley, Community Development
Specialist or his/her designee. Unless otherwise informed, any notice, report, or other
communication required by this Agreement shall be mailed by first class mail to the City
HOME Coordinator at the following address;
City of National City
Housing and Grants
Attn.: Jim Ridley
1243 National City Blvd.
National City, CA 91950
25. Waivers
No waiver of any breach of this Agreement will be held to be a waiver of any other prior or
subsequent breach. The failure of the CITY to enforce at any time the provisions of this
Agreement or to require at any time performance by SD-HFH of these provisions shall in no
way be construed to be a waiver of such provisions nor to affect the validity of this
Agreement or the right of the CITY to enforce these provisions.
26. Litigation
A. If any provision of this Agreement, or underlying obligation, is held invalid by a court of
competent jurisdiction, such invalidity, will not affect any other provision of this
Agreement and the remainder of this Agreement shall remain in full force and effect
Therefore, the provisions of this Agreement are deemed severable.
HOME CHDO Funding Agreement Page 19 of 21
Attachment No. 1
B. SD-HFH must notify the CITY immediately of any claim or action undertaken by or
against it which affects or may affect this Agreement or the CITY, and shall take such
action with respect to the claim or action as is consistent with the terms of this
Agreement.
27. NLRB Certification
SD-HFH warrants by execution of this Agreement and does swear under penalty of
perjury that no more than one final unappealable finding of contempt of court by a
Federal Court has been issued against SD-HFH within the immediately preceding two -
year period because of SD-HFH's failure to comply with an order of a Federal Court
which orders SD-HFH to comply with an order of the National Labor Relations Board.
29. Miscellaneous
A. Time is of the essence in this Agreement.
B. If any date or time period provided for in the Agreement is or ends on a Saturday,
Sunday, or federal, state, or legal holiday, then such date shall automatically be extended
until 5:00 pm Standard Pacific Time of the next day which is not a Saturday, Sunday, or
federal, state, or legal holiday.
B. SD-HFH agrees to indemnify, defend and save harmless the City, its officers, agents and
employees from any and all liability or claim of liability or claims and losses, including
attorney fees accruing or resulting to any and all contractors, subcontractors, suppliers,
laborers and any other person, firm or corporation furnishing or supplying work services,
materials or supplies in connection with the performance of this Agreement, and from
any and all liability or claim of liability or claims and losses, including attorney fees,
accruing or resulting to any person, firm or corporation who may be injured or damaged
by the negligent, reckless, or intentional acts, errors or omissions of SD-HFH in the
performance of this Agreement.
C. Without the written consent of the City, this agreement is not assignable by SD-HFH
either in whole or in part
D. No alteration or variation of the terms of this Agreement shall be valid unless made in
writing and signed by the parties hereto, and no oral understanding or agreement not
incorporated herein, shall be binding on any of the parties hereto.
E. SD-HFH, and the agents and employees of SD-HFH, in the performance of this
Agreement, will act in an independent capacity and not as officers or employees or agents
of the City.
F. This Agreement will be construed in accordance with, and governed by, the laws of the
State of California. All disputes requiring the commencement of any judicial proceeding
under this Agreement will have the place of venue as the South County Regional Judicial
District of the County of San Diego, State of California.
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Attachment No. 1
G. If any term, provision, covenant or condition of this Agreement is held by a court of
competent jurisdiction to be invalid, void or unenforceable, the rest of the Agreement
will remain in full force and effect and shall in no way be affected, impaired or
invalidated.
H. The Exhibits attached hereto are hereby incorporated herein by this reference for all
purposes.
Exhibits
A. Purchase -Rehabilitation -Resale Workplan
B. Production Timeline and Development Calendar
C. Purchase -Rehabilitation -Resale Budget Worksheet
D. CHDO Proceeds Agreement
E. Unsecured Environmental Indemnity
F. Construction Requirements
G. Housing Quality Standards
H. Specifications and Technical Standards
I. First -Time Homebuyer Assistance Program Manual
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day
and year first herein set forth.
CITY OF NATIONAL CITY
SAN DIEGO HABITAT FOR HUMANITY
COMMUNITY HOUSING
CORPORATION, INC.
By: By:
Ron Morrison, Mayor Lori Holt Pfeiler
Its: Mayor Its: Executive Director
By:
Randy C. Frisch
Its: Board of Directors Chairman
APPROVED AS TO FORM:
Claudia G. Silva
City Attorney
HOME CHDO Funding Agreement Page 21 of 21
Attachment No. 1
EXHIBIT A
PURCHASE AND REHABILITATION WORK PLAN
The purpose for the City of National City's investment of $650,000 in HUD HOME
Investment Partnership funds with Habitat for Humanity -San Diego (HFH-SD) is to
assist HFH-SD to purchase, rehabilitate and re -sell, as a goal, a minimum of six (6)
single family homes within the city limits of the City of National City to first-time
homebuyers earning 80% or less of the HUD determined Median Area Income by June
30, 2014. This investment partnership will turn vacant (foreclosed on or otherwise)
single-family homes into lead-free/asbestos-free rehabilitated, quality affordable
homeownership opportunities.
To achieve these ends the City, through its certified Housing Inspectors, will provide a
lead -based paint assessment and inspect each potential home purchase for existing
health and safety and building code violations (un-permitted additions, garage
conversions, electrical/plumbing upgrades, etc.) and HFH-San Diego will provide an
asbestos assessment and then incorporate all that information into its overall
rehabilitation plan for the house. This will ensure that the future buyer(s) will have a
home free of problems for the long term and intervene in many of the unscrupulous
practices that assisted lower income buyers to purchase inadequate housing during the
last housing market boom/bust.
Specific tasks related to achieving a completed purchase/rehabilitation/re-sale project
are as follows:
• It must be acknowledged that in order for the City to distribute the $650,000 in
HOME funds pledged to the project in a timely manner to avoid the risk of
paying back or returning funds to HUD the program must start out with the
purchase of two homes within an approximately 30 day time frame of each
other.
• HFH- SD will access any and all means available to it to identify potential
houses to buy. The projected cumulative budget to purchase/rehabilitate/resell
a single property is $230,000 with the difference between the affordable first
loan and the appraised value being rolled over into second loan at the time of
re -sale. The flexibility will allow multiple permutations of purchase versus
rehabilitation expenditures such as purchasing properties in good condition
needing only upgrades to purchasing homes with potential for resale which
need major rehabilitation work. The latter scenario provides the overall best
Attachment No. 1
return to the City, from a community development perspective, by removing
problem properties from the housing stock and returning them to viability.
• For project expediency, once a house has been selected HFH-SD should
contact the City and arrange for an inspection and record review as soon as
possible to best facilitate determining the scope of work to be pursued. Seller
permission is required if such inspection occurs before escrow has been
entered into and/or escrow instructions must indicate that such an inspection
will occur. The City at this time will also facilitate submission of the HOME
Program required historic structures review and perform the rest of the required
HUD environmental documentation.
• HFH-SD will, during this time (or immediately after the close of escrow), provide
a rehabilitation Scope of Work for the City's review and approval incorporating
the City's Health & Safety report into the overall rehabilitation plan. The Scope
of Work will include a budget with a 10% contingency. The rehabilitation budget
can include the cost of an after -rehabilitation market appraisal to establish the
final sales price.
• Prior to the close of escrow for the initial purchase, the City will deposit the
required funds to facilitate the transaction.
• When the Scope of Work has been finalized the City, immediately after the
close of escrow, will deposit the rehabilitation budget amount plus the flat rate of
$30,000 per unit Developer's Fee into a Dixieline Fund Control account to fund
the rehabilitation activities on the house. Any unused construction funds will be
left in the Fund Control until such time as they can be rolled over into the Fund
Control for the next house. Up to $20,000 of the flat rate Developer's Fee can
be extracted during the rehabilitation process with the remaining $10,000 to be
paid when the sale to the new owner has been completed.
• HFH-SD must establish a separate bank account to deposit sales proceeds
from each house it sells. Co -mingling of funds is unacceptable. A copy of the
bank statement should be provided to the City each month.
• HFH-SD can use prior sales proceeds to enter into the next home purchase
and the City will continue to fund the rehabilitation and project management
costs as detailed above until the entire $650,000 in HOME funds have been
distributed.
HAZARDOUS MATERIALS NOTIFICATION
Asbestos
• Materials containing asbestos (ACM) that are to be removed as a condition of
contract shall be removed and disposed of in a proper and safe manner by a
Attachment No. 1
certified asbestos abatement contractor or in accordance with locally -
approved disposal standards.
• See California Code of Regulations, Title 8, Section 1529 for laws and
regulation detailing asbestos removal and disposal.
• See California Asbestos Consultants and Certified Site Technicians
• Database from the California Department of Occupational Safety
• and Health to make sure the testing consultants and demolition
• technicians are certified by the State of California.
• See www.sdasbestos.orq for San Diego County asbestos information
• and resource site.
• No asbestos containing materials shall be used for repair, replacement or
• new installation.
• Assessment of the need to test for asbestos will be made by the City
inspector prior to issuing the bidding specifications.
Lead -Based Paint
• Every unit constructed before 1978 which is or may become occupied by
children under the age of seven must be tested for the presence of lead
(exceeding Federal Standards) in paint. Testing and assessment services
will be provided by the City Lead Inspector/Assessor at no cost.
• Lead based paint must be abated in accordance with federal regulations. The
HUD regulation requires that lead -based paint must be abated (completely
removed or encapsulated in such a way that it is rendered harmless for a
minimum of 20 years.)
• Lead waste can be very hazardous to human health and must be disposed of
in accordance with applicable laws and regulations. This Guidance is
intended to help property owners and contractors understand how to correctly
dispose of lead waste when performing lead abatement activities or
renovation work that disturbs old paint.
Please Note: When the painted surfaces of pre-1979 structures are scraped,
sanded, or demolished, You must assume that the paint debris created by
this work is hazardous waste. If a certified laboratory confirms otherwise,
documentation is required. Separate the paint debris and any other lead -
contaminated waste from the rest of your trash and follow the disposal
procedures detailed below. Lead -contaminated waste that must be properly
disposed of includes rags that were used to wipe away lead -contaminated dust
and vacuum cleaner bags that contain lead paint chips. These are common
examples of lead waste that must be disposed of correctly.
Attachment No. 1
EXHIBIT B
PRODUCTION TIMELINE AND DEVELOPMENT CALENDAR
Project Timeline Assumptions:
• Assume close to parallel purchase of two homes to start program once
agreement is fully executed
• Assume 120 day construction schedule once construction funds are in place for
each project
• Assume buyer solicitation starts at close of escrow of first two houses purchased
for rehabilitation and resale
Estimated Individual Project Development Timeline:
• 30 days to find house(s) after agreement is fully executed
• HFH enters 30 day escrow
• City sends historic properties to SHPO to get 30 day clearance and completes
HUD environmental review
• Preliminary inspection by City for Health & Safety/Lead- based paint within 20
days of closing (or sooner if there is seller permission in place)- SD-HFH checks
for asbestos at earliest opportunity
• Rehabilitation Plan and Budget to City within 20 days of receiving City inspection
report
• City reviews Plan/Budget and agreement is reached within 20 days of receiving
proposed Plan/Budget
• Once purchase escrow has closed City deposits funds in Dixieline Fund Control
within 20 days of Plan/Budget agreement (rehab + project costs) or within five
days of closing if agreement is reached during the escrow term
• Construction term is approximately 120 days from the deposit of construction
funds
• Sale to new owner is approximately 165 days from start of construction
• HFH establishes "escrow" account to keep 1st mortgage proceeds from home
sales to establish fund account for future purchases.
Estimated Long Term Calendar
• 1st house completion- April 15, 2013
• 2nd house completion- July 15, 2013
• 3rd house completion- October 15, 2013
• 4th house completion- February 15, 2014
• 5th house completion- May 15, 2014
• 6th house completion- to be determined
Attachment No. 1
EXHIBIT C
HFH PURCHASE/REHAB/RE-SALE BUDGET PROJECTION
$ 650,000.00
BEGINNING PROJECT BALANCE
$ (380,000.00)
$ (80,000.00)
$ (60,000.00)
PURCHASE OF HOUSE #1 & HOUSE #2
Rehab cost/2nd loan
HFH project payment
$ 190,000.00
$ (190,000.00)
$ (40,000.00)
$ (30,000.00)
from House #1
PURCHASE OF HOUSE #3
rehab cost/2nd loan
HFH project payment
$ 190,000.00
$ (190,000.00)
$ (40,000.00)
$ (30,000.00)
from house #2
PURCHASE OF HOUSE #4
rehab cost/2nd loan
HFH project payment
$ 190,000.00
(190,000.00)
S (40,000.00)
(30,000.00)
from house #3
PURCHASE OF HOUSE #5
rehab cost/2nd loan
HFH project payment
$ 190,000.00
CHDO Proceeds from house #4
$ 190,000.00
CHDO Proceeds from house #5
380,000.00
HFH CHDO PROCEEDS BALANCE AFTER HOUSE
#5
$ (190,000.00)
$ (40,000.00)
$ (30,000.00)
PURCHASE OF HOUSE #6
rehab cost/second loan
HFH project payment
$ 190,000.00
CHDO Proceeds from House #6
Attachment No. 1
$ 310,000.00
RESTRICTED HFH CHDO PROCEEDS BALANCE
AFTER HOUSE #6 TO BE USED FOR ADDITIONAL
AFFORDABLE HOUSING DEVELOPMENT IN
NATIONAL CITY.
NOTE: ONCE THESE FUNDS HAVE BEEN CYCLED
THROUGH HOUSING DEVELOPMENT ACTIVITIES
THEY BECOME UNRESTRICTED CHDO PROCEEDS
NOT SUBJECT TO HOME REQUIREMENTS.
$ 180,000.00
TOTAL PROJECT DEVELOPMENT PAYMENTS TO
HFH AFTER THE PURCHASE/REHAB/RESALE OF
SIX SINGLE FAMILY HOMES
Attachment No. 1
Exhibit D
CHDO Proceeds Agreement
This Agreement between the City of National City and San Diego Habitat for Humanity ("the
CHDO") for the use, allocation, accounting, and monitoring of proceeds realized by the CHDO
in the performance of the CHDO's contractual obligations to the Jurisdiction.
1. Definitions
a. Project
i. A project is any single address.
b. Proceeds:
i. Proceeds result from the sale of a single family property financed by the
Jurisdiction through the HOME program.
1. Proceeds include both HOME funds and any other funds from any
source which are realized by the sale of property assisted in any
form or fashion with HOME funds.
ii. The total HOME funds provided by the Jurisdiction to the CHDO for any
specific project under this contract, less the actual expenses for the project,
the buyer's down payment, the buyer's contribution, the project fee to the
developer and any non -HOME or non-CDBG mortgages are defined as
CHDO Proceeds, or Proceeds.
c. Allowable Use:
i. An eligible activity defined by either the HOME program regulations or
this agreement that directly supports the creation of affordable housing in
CITY shall be collectively known as an "allowable use." Allowable uses
are further defined and limited by this agreement.
d. Governing Law and Regulation
i. Final HOME Rule: 24 CFR Parts 91 and 92
ii. CPD Notice 97-9
2. Allowable Uses of Proceeds
a. Any eligible use of HOME funds, as defined in 24 CFR Parts 91 and 92 of the
Final HOME Rule shall be an allowable use under this contract, so long as the
allowable use results in or supports the creation of new units of affordable single
family housing for purchase by HOME qualified buyers.
3. Prohibited Uses of Proceeds
a. Proceeds may not be used to fund, finance or pay for a loan counseling, debt
counseling or homebuyer counseling programs or efforts as long as the
Jurisdiction provides funding to any other organization or entity to provide these
services.
Attachment No. 1
b. Proceeds may not be used to fund any operating reserves of the CHDO.
c. Proceeds may not be utilized to make repairs, reconstruct, or rebuild any unit
previously financed with HOME funds without the express written permission of
the Jurisdiction.
4. Accounting
a. The CHDO shall retain proceeds in a separate bank account and shall provide an
accounting of the use of proceeds to the Jurisdiction on a quarterly basis.
i. The accounting shall designate the project and show the flow of funds into
and out of the project account until all funds in the account are expended
in accordance with this agreement.
b. To facilitate proper accounting for the proceeds, the CHDO shall utilize the
spreadsheet designated by the Jurisdiction and included here by reference.
c. The auditor of the CHDO shall, at each annual audit, review the CHDO proceeds
account of the CHDO and shall include in the annual audit specific language
stating whether or not th CHDO has complied with the terms of this agreement.
5. Allocation and Use of Proceeds
a. Under the CHDO's contract with the Jurisdiction, the Jurisdiction provides the
CHDO with a development subsidy to assist in the development of single family
housing within the Jurisdiction.
b. The development subsidy is expended by the CHDO to build the home.
c. Proceeds are realized upon the sale of the completed home to a qualified buyer
per the definition provided above.
i. Proceeds are realized on the date of the close of the property with the
homebuyer.
d. To facilitate the quick rollover and expenditure of proceeds, the CHDO will
invest proceeds in the next available project as soon as the proceeds are realized,
and before a request for additional funds for development activity from the
Jurisdiction.
6. Draw Requests
a. Requests to the Jurisdiction for disbursement of funds for land acquisition, site
development and/or construction financing on any subsequent project under this
contract, shall include the following:
i. The full amount of the requested disbursement.
1. The amount drawn from proceeds
a. Including the project name or names the amount is drawn
from.
Attachment No. 1
2. The net amount of the requested disbursement.
7. Monitoring and Compliance
a. Each year, on or before the 31st of March, the CHDO shall deliver an audit by a
certified public accountant to the Jurisdiction.
i. The audit shall contain the provision noted under accounting.
b. The Jurisdiction may request at any time, without prior notice, any file, financial
record, or document related to any project that received any HOME funds or
Proceeds.
i. The CHDO agrees to comply with any request within five business days of
the request.
c. The Jurisdiction will monitor the CHDO's use of Proceeds based on a risk
assessment. Typically, the Jurisdiction will notify the CHDO thirty days in
advance of the monitoring.
d. Failure by the CHDO to deliver the audit, to submit the required quarterly report,
segregate the Proceeds in a separate account, or to properly account for the
Proceeds to the standard provided shall by this agreement, shall be a breach of
contract under the terms of this Agreement.
i. The Jurisdiction, may, at the Jurisdiction's sole discretion, end all
payments under the contract until the terms of this Agreement are met.
Attachment No. 1
EXHIBIT E
UNSECURED ENVIRONMENTAL INDEMNITY AGREEMENT
THIS UNSECURED ENVIRONMENTAL INDEMNITY AGREEMENT ("Indemnity")
is dated as of this day of , 20XX, by San Diego Habitat for Humanity, Inc., a
California nonprofit corporation ("Indemnitor"), to and for the benefit of the City of National City
("CITY"), its successors and assigns and, to the extent not otherwise referenced, the Indemnified
Parties (as hereinafter defined).
RECITALS
A. CITY has agreed to make a grant ("Grant") to Indemnitor as described in that certain
CHDO Funding Agreement between CITY and Indemnitor, dated as of , 20XX
("Agreement").
B. It is a condition of CITY's making the Grant that this Indemnity be executed and
delivered by Indemnitor. CITY is making the Grant in reliance upon this Indemnity.
C. This Indemnity is unsecured.
D. This Indemnity Agreement provides blanket indemnity for all properties purchased
with Grant funds as described in the Agreement referenced above.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing and of CITY granting the Funds,
and other valuable consideration, the receipt of which is hereby acknowledged, Indemnitor agrees as
follows:
1. Indemnity.
(a) Subject to Sections 2, 3 and 4 below, Indemnitor hereby agrees to defend, protect,
indemnify and hold harmless CITY, CITY's affiliates, directors, officers, shareholders, agents and
employees, and CITY's participants, successors and assigns specified in Section 4 hereof
(hereinafter, collectively, the "Indemnified Parties"), from and against, and shall reimburse the
Indemnified Parties for, any and all actual out-of-pocket costs (including, without limitation,
attorneys' fees, expenses and court costs), expenses or losses arising from any claim, liability,
damage, injunctive relief, injury to person, property or natural resources, fine, penalty, action or
cause of action (collectively, "Costs and Liabilities"), incurred by or asserted against any
Indemnified Party and arising directly or indirectly, in whole or in part, out of the release, discharge,
deposit or presence, or alleged or suspected release, discharge, deposit or presence, of any
Hazardous Materials at, on, within, under, about or from the Property, or in or adjacent to any part of
the Property, or in the soil, groundwater or soil vapor on or under the Property, or elsewhere in
1
Attachment No. 1
connection with the transportation of Hazardous Materials to or from the Property in violation of any
Hazardous Materials Laws, whether or not known to Indemnitor or Indemnified Parties, whether
foreseeable or unforeseeable, regardless of the source of such release, discharge, deposit or presence
or, except as expressly provided to the contrary in Sections 2 and 4 hereof, regardless of when such
release, discharge, deposit or presence occurred or is discovered. Without limiting the generality of
the foregoing indemnity, such Costs and Liabilities shall include, without limitation, all actual out-
of-pocket costs incurred by Indemnified Parties in connection with (i) determining whether the
Property is in compliance with this Indemnity and with all applicable Hazardous Materials Laws or
the amount of money required to remediate any environmental contamination, and causing the
Property to be or become in compliance, with all applicable Hazardous Materials Laws, (ii) any
removal or remediation of any kind and disposal of any Hazardous Materials present at, on, under or
within the Property or released from the Property to the extent required by applicable Hazardous
Materials Laws in effect at the time of such removal, remediation or disposal, and (iii) repair of any
damage to the Property or any other property caused by any removal, remediation or disposal.
(b) Upon demand by any Indemnified Party, Indemnitor shall defend any investigation,
action or proceeding in connection with any claim or liability, or alleged claim or liability, that
would, if determined adversely to such Indemnified Party, be covered by the foregoing
indemnification provisions, such defense to be at Indemnitor's sole cost and expense and by counsel
reasonably approved by such Indemnified Party, which counsel may, without limiting the rights of
an Indemnified Party pursuant to the next succeeding sentence of this Section 1(b), also represent
Indemnitor in such investigation, action or proceeding. If any Indemnified Party determines
reasonably and in good faith that its defense by Indemnitor is being conducted in a manner which is
prejudicial to its interests, such Indemnified Party may elect to conduct its own defense through
counsel of its own choosing and at the expense of Indemnitor.
(c) As used herein, the term "Hazardous Materials" means and includes any flammable,
explosive, or radioactive materials or hazardous, toxic or dangerous wastes, substances or related
materials or any other chemicals, materials or substances, exposure to which is prohibited, limited or
regulated by any federal, state, county, regional or local authority or which, even if not so regulated,
may or could pose a hazard to the health and safety of the occupants of the Property or of property
adjacent to the Property, including, but not limited to, asbestos, PCBs, petroleum products and
byproducts, substances defined or listed as "hazardous substances" or "toxic substances" or similarly
identified in, pursuant to, or for purposes of, the California Solid Waste Management, Resource
Recovery and Recycling Act (California Government Code §66700 et seq.), the Comprehensive
Environmental Response, Compensation, and Liability Act, as amended (42 U.S.C. §9601, et seq.),
the Hazardous Materials Transportation Act (49 U.S.C. § 1801, et seq.), the Resource Conservation
and Recovery Act (42 U.S.C. §6901, et seq.), Section 25117 or Section 25316 of the California
Health & Safety Code; and any so-called "Superfund" or "Superlien" law, or any other federal, state
or local statute, law, ordinance, code, rule, regulation, order or decree regulating, relating to or
imposing liability or standards of conduct concerning any hazardous, toxic or dangerous waste,
substance or material; or any substances or mixture regulated under the Toxic Substance Control Act
of 1976, as now or hereafter amended (15 U.S.C. §2601 et seq.); and any "toxic pollutant" under the
Clean Water Act, as now or hereafter amended (33 U.S.C. §1251 et seq.); and any hazardous air
pollutant under the Clean Air Act, as now or hereafter amended (42 U.S.C. §7901 et seq.).
Notwithstanding the above, the term "Hazardous Materials" shall not include small amounts of
2
Attachment No. 1
chemicals, cleaning agents and the like commonly employed in routine household uses in a manner
typical of occupants in other similar residential properties provided they are used in compliance with
applicable laws. The term "Hazardous Materials Laws" means any federal, state or local law, code,
statute, ordinance, rule, regulation, rule of common law or guideline relating to Hazardous Materials
now or hereafter enacted or promulgated (collectively, and including, without limitation, any such
laws which require notice of the use, presence, storage, generation, disposal or release of any
Hazardous Materials to be provided to any party).
2. Time Limits on Claims. Notwithstanding the foregoing provisions:
(a) No claim shall be made hereunder by any Indemnified Party unless and until the
following event shall have occurred: vesting of title to the Property in CITY or any Indemnified
Party through judicial or non judicial foreclosure or acceptance of a deed in lieu thereof.
(b) Indemnitor shall not have any obligation under this Indemnity to an Indemnified
Party with respect to any Costs and Liabilities that, prior to the first to occur of the events described
in Section 2(a) above: (i) were actually known to CITY; (ii) were liquidated in amount, or were
otherwise readily determinable in amount without undue delay; and (iii) would have been lawfully
and properly includable as part of any breach of the Grant Agreement
(c) If any Indemnified Party or any affiliate of any Indemnified Party has acquired
ownership of the Property through foreclosure or deed in lieu of foreclosure, the obligations of
Indemnitor hereunder shall apply, without limitation, to all Costs and Liabilities that arise out of or
are attributable to, whether directly or indirectly, ownership of the Property or any part thereof by
any Indemnified Party or any such affiliate, or to the position of such Indemnified Party or such
affiliate as an owner in the chain of title to the Property or any part thereof.
(d) If the requirements of the Grant Agreement has been completed in full the obligations
of Indemnitor hereunder shall continue to apply, without limitation, to all Costs and Liabilities that
arise out of or are attributable to, whether directly or indirectly, any claim or allegation against an
Indemnified Party relating to any act or omission of such Indemnified Party in respect of the Loan or
the Property, or in connection with any exercise of such Indemnified Party's rights under the Grant
Agreement.
3. Acts of Indemnified Parties.
(a) Notwithstanding anything to the contrary herein, Indemnitor shall not be liable
hereunder to an Indemnified Party to the extent of that portion of any Costs and Liabilities which
Indemnitor establishes is attributable to an affirmative act of such Indemnified Party, its agent or any
successor in interest of an Indemnified Party at the Property which causes (i) the release, discharge,
deposit or presence, or alleged or suspected release, discharge, deposit or presence of a Hazardous
Material at the Property, or (ii) material aggravation of a then existing Hazardous Material condition
or occurrence at the Property, if and only if, in either such case referred to in (i) or (ii) above, such
act was in violation of any Hazardous Materials Laws or was carried out without reasonable care
under the circumstances.
3
Attachment No. 1
(b) In addition, Indemnitor shall not be liable hereunder for that portion of any Costs and
Liabilities which Indemnitor establishes is attributable to the introduction and initial release,
discharge or deposit, or alleged or suspected introduction, initial release, discharge or deposit of a
Hazardous Material at the Property by any party, other than Indemnitor or an affiliate of Indemnitor,
at any time after Indemnitor's ownership interest in the Property terminates. Notwithstanding the
foregoing, but subject to Sections 2 and 3(a) above and Section 4 below, the liability of Indemnitor
hereunder shall otherwise remain in full force and effect after CITY or such affiliate of CITY so
acquires title to the Property, including without limitation with respect to any Hazardous Materials
which are discovered at the Property after the date CITY or such affiliate of CITY acquires title but
which were actually introduced to the Property prior to the date of such acquisition.
4. Indemnified Parties. This Indemnity and Indemnitor's obligations hereunder shall inure to
the benefit of and be enforceable only by (a) CITY, CITY's directors, officers, shareholders, agents
and employees, (b) any person or entities to which any CITY participates, assigns or sells all or any
portion of its interest in the Loan, or which otherwise succeeds to the interest of CITY under the
Agreement, whether by purchase or otherwise, and (c) any affiliate of CITY which acquires title to
the Property at a foreclosure sale or by deed in lieu of foreclosure.
5. Unsecured Obligations. The obligations of Indemnitor hereunder are unsecured. This
Indemnity is not intended to be, nor shall it be, secured by the Deed of Trust or any other instrument
or agreement executed by Indemnitor or any other entity or person in favor of CITY or any Indem-
nified Party relating to the Grant. The obligations of Indemnitor under this Indemnity are
independent of any indemnification or other obligations of Indemnitor under the Grant Agreement
with respect to any Hazardous Materials. The rights and remedies of the Indemnified Parties under
this Indemnity shall be in addition to any other rights and remedies of such Indemnified Parties
under the Agreement. In no event shall any provision of this Indemnity be deemed to be waiver of
or to be in lieu of any right or claim, including without limitation any right of contribution or other
right of recovery, that any person entitled to enforce this Indemnity might otherwise have against
Indemnitor under any Hazardous Materials Laws. Any sums payable hereunder shall not be deemed
to be based upon any diminution in or other impairment of the value of any collateral held by CITY
to enforce the Grant requirements.
6. Interest on Unpaid Amounts. Any amount claimed hereunder by an Indemnified Party not
paid by Indemnitor within thirty (30) days after written demand made by such Indemnified Party and
accompanied by a reasonable summary of the amounts claimed, shall bear interest at the rate of ten
percent (10%) per annum or the highest interest rate permitted by law, whichever is less.
7. Limitations on Liability. The liability of Indemnitor under this Indemnity shall in no way be
limited or impaired by (a) any amendment or modification of the provisions of any of the Loan
Documents; (b) except as set forth in Sections 2, 3 and 4, any participation in or sale or assignment
of the Loan Documents or any sale or transfer of all or part of the Property; (c) the release of
Indemnitor or any person or entity from performance or observance of any of the agreements,
covenants, terms, or conditions contained in any of the Loan Documents by operation of law; and, in
any such case, whether with or without notice to Indemnitor and with or without consideration.
Except as provided in Sections 2, 3 and 4, Indemnitor's obligations hereunder shall in no way be
impaired, reduced or released by reason of (i) an Indemnified Party's omission or delay in exercising
4
Attachment No. 1
any right described herein or (ii) any act or omission of an Indemnified Party in connection with any
notice, demand, warning, or claim regarding violations of codes, laws or ordinances governing the
Property.
8. Recourse Obligations. Notwithstanding anything to the contrary in the Loan Documents,
Indemnitor shall be personally liable on a recourse basis for the obligations of Indemnitor set forth
herein.
9. Successors and Assigns. This Indemnity shall be continuing, irrevocable and binding upon
each of the persons and entities comprising Indemnitor and their respective heirs, successors, and
assigns.
10. Inconsistencies. In the event of any inconsistencies or conflicts between the terms of this
Indemnity and the terms of the Grant Agreement (including any exculpatory language contained
therein), the terms of this Indemnity shall control.
11. Separate Causes of Action. A separate right of action hereunder shall arise each time an
Indemnified Party acquires knowledge of any matter described herein. Separate and successive
actions may be brought hereunder to enforce any of the provisions hereof at any time and from time
to time. No action hereunder shall preclude any subsequent action.
12. Severability. If any provision of this Indemnity shall be determined to be unenforceable in
any circumstances by a court of competent jurisdiction, then the balance of this Indemnity never-
theless shall be enforceable, and the subject provision shall be enforceable in all other circumstan-
ces.
13. Attorneys' Fees. In any action or proceeding brought by the Indemnified Parties to enforce
any rights under this Indemnity, the prevailing party shall be entitled to all reasonable attorneys' fees
and all costs, expenses and disbursements in connection with such action.
14. Notices. Any notice, demand, request or other communication which any party hereto may
be required or may desire to give hereunder shall be in writing and will be effectively served upon
personal delivery or, if mailed, no later than 48 hours after deposit in first class or certified United
States mail, postage prepaid, sent to:
To CITY:
To Developer:
City of National City
1243 National City Boulevard
National City, CA 91950-4397
San Diego Habitat for Humanity, Inc.
10222 San Diego Mission Road
San Diego, CA 92108
which addresses may be changed by written notice.
5
Attachment No. 1
15. Governing Law. This Indemnity shall be governed by and construed in accordance with the
laws of the State of California.
16. Counterparts. This Indemnity may be executed in any number of counterparts and, as so
executed, the counterparts shall constitute one and the same agreement. The parties agree that each
such counterpart is an original and shall be binding upon all the parties, even though all of the
parties are not signatories to the same counterpart.
17. Exhibits and Recitals Incorporated. All exhibits referred to in this Indemnity, if any, are
hereby incorporated in this Indemnity by this reference, regardless of whether or not the exhibits are
actually attached to this Indemnity. The Recitals to this Indemnity are hereby incorporated in this
Indemnity by this reference.
18. Signature Authority. All individuals signing this Indemnity for a party which is a
corporation, limited liability company, partnership or other legal entity, or signing under a power of
attorney, or as a trustee, guardian, conservator, or in any other legal capacity, covenant to the CITY
that they have the necessary capacity and authority to act for, sign and bind the respective entity or
principal on whose behalf they are signing.
6
Attachment No. 1
EXHIBIT F
CONSTRUCTION REQUIREMENTS
San Diego Habitat for Humanity's receipt of HOME funds for purposes of paying
construction related costs in connection with the Project is conditioned upon the
SD-HFH adherence to certain construction requirements imposed by the City in
connection with the Project, including, without limitation, the requirements set
forth in this EXHIBIT F.
1. Submittals and Review Procedure; Construction Monitoring
(a) Submittal requirements shall include the following:
(i)
SD-HFH shall submit to the City a Project team -staffing plan ("Staffing
Plan") for review and approval by the City. The Staffing Plan shall
show all component functions and reporting relationships.
(ii) SD-HFH shall submit to the City a Scope of Work with a corresponding
line item budget as support for any request for funds.
SD-HFH shall make sure they are familiar with the City of National City
building permit requirements and apply for any and all permits as
required.
(iii) SD-HFH shall provide to the City a copy of the approved building
permit and any construction drawings required to receive said permit.
(b) The City will provide construction monitoring oversight of the Project. SD-
HFH shall maintain at the job site adequate records and shall permit site access
to the City at all reasonable times to accommodate the monitoring activities. The
monitoring program may include, but is not limited to, the following: attendance at
job site meetings; review of job correspondence; site inspections; pay request
reviews and approvals;
2. Loan Disbursement and Requisitions.
Requests to the City for construction progress payments ("Progress Payments")
by the SD-HFH under the terms of this Agreement are to be made on the basis of
percentage of work completed to the date of each such request. Dixieline Fund
control will be contracted to distribute funds, obtain invoices, and require
execution of appropriate lien releases from all contractors and material suppliers
pursuant to California mechanics lien law. Requests will be made per Dixieline's
adopted fund control format. If a site visit is required by the City, the City agrees
to perform the Site Visit within two working days of receipt of the request. The
Attachment No. 1
City shall have up to four business days to approve the request from the original
date of the request. Time is of the essence in the processing of requests.
3. Insurance
(a) The purpose of this Section is to establish insurance requirements.
(b) SD-HFH shall require that any contractor working on a project shall
procure and maintain at Contractor's expense the following insurance against
claims for injuries to persons or damage to property which may arise from or in
connection with the performance of the work by such Contractor, its agents,
representatives, or employees that the contractors shall otherwise meet the
insurance requirements set forth below:
(i)
Comprehensive General Liability: $500,000 combined single limit for
each occurrence ($1,000,000 General Aggregate) for bodily injury,
personal injury and property damage, and products and completed
operations coverage for all subcontractors.
(ii) Automobile Liability: $1,000,000 combined single limit per accident for
bodily injury and property damage covering owned, non -owned and
hired vehicles.
(iii) Workers Compensation as required by the Labor Code of the State of
California and Employers Liability limits of $1,000,000 per accident.
(iv) SD-HFH shall furnish the City upon request, copies of certificates of
insurance maintained by it (and all subcontractors and sub -
subcontractors) with original endorsements affecting coverage as
required above.
4. Construction Budget Changes.
The line item construction budget may be subject to change from time to time
based on possible change orders and/or changes in the scope of work. Provided
there is adequate contingency remaining in the construction budget to cover such
change, the Borrower may approve any changes in the line item construction
budget up to the greater of $2,500 or 10% of the original line item amount without
the approval of the City. The City shall have the right to approve any changes
above the aforementioned limits. The Borrower agrees to provide the City with
an updated construction budget within 10 days of any such change.
Attachment No. 1
EXHIBIT G
CALIFORNIA
NSA`i.'ION�!Lcur
!7"`�/
INCORPORATED
HOUSING QUALITY STANDARDS
These housing rehabilitation/construction standards are intended as a guide for
housing assisted with United States Department of Housing and Urban Development
(HUD) HOME Investment Partnership Program (HOME) funds and/or any other public
funding sources. All HOME and other publicly assisted housing must, upon completion,
be affordable, decent, safe, and sanitary. As such, assisted housing must meet or
exceed these standards and all local codes, zoning and ordinances. With the exception
of locally adopted variations, all habitable structures assisted with HOME must meet
these standards. New construction shall comply in full with all applicable codes and
regulations. The City of National City reserves the right to insist on repair of any item
which, in accordance with this standard:
1. renders a property unsafe and/or unsanitary;
2. constitutes a major building system in danger of failure;
3. fails to meet applicable codes.
SUBSTANDARD CONDITIONS
When substandard conditions are encountered in a unit to be rehabilitated with HOME
Program funds, all substandard items must be addressed. Any building or portion
thereof which is determined to be an unsafe building in accordance with the Building
Code or Housing Quality Standards, or any building or portion thereof including any
dwelling unit in which there exists any conditions that endangers life, limb, health,
property, safety, or welfare of the public or occupants thereof shall be deemed to be
substandard.
• Structural Hazards. Buildings or portions thereof shall be deemed
substandard when they are or contain structural hazards. Structural hazards
shall include, but not be limited to, the following:
• Deteriorated or inadequate foundations
• Defective or deteriorated flooring or floor supports
Attachment No. 1
• Flooring or floor supports of insufficient size to safely carry imposed
loads
• Members of walls, partitions or other vertical supports that split,
lean, list, or buckle due to defective material or deterioration
• Members of walls, partitions, or other vertical supports that are of
insufficient size to carry imposed loads with safety
• Members of ceilings, roofs, and supports or other horizontal
members which sag, split or buckle due to defective material or
deterioration
• Members of ceilings, roofs, and supports or other horizontal
members that are of insufficient size to carry the imposed loads
with safety
• Condition of stairs, railings and porches that are hazardous or not
sound
• Potential for collapse of the chimney or the chimney is not capable
of safely carrying smoke, fumes and gasses from the unit to the
outside
• Hazardous Electrical Wiring. Electrical wiring which was installed in violation
of code requirements in effect at the time of installation or electrical wiring not
installed in accordance with generally accepted construction practices in
areas where no codes were in effect or which has not been maintained in
good condition or which is not being used in a safe manner shall be
considered substandard.
• Hazardous Plumbing. Plumbing which was installed in violation of code
requirements in effect at the time of installation or plumbing not installed in
accordance with generally accepted construction practices in areas where no
codes were in effect or which has not been maintained in good condition or
which is not free of cross -connections or siphoning between fixtures shall be
considered substandard.
• Hazardous Mechanical Equipment. Mechanical equipment which was
installed in violation of code requirements in effect at the time of installation or
mechanical equipment not installed in accordance with generally accepted
construction practices in areas where no codes were in effect or which has
not been maintained in good and safe condition or which is not being used in
a safe manner shall be considered substandard.
• Faulty Weather Protection. Buildings or portions thereof shall be considered
substandard when they have faulty weather protection. This is defined as
conditions that would allow significant amounts of water or air to enter the unit
which would result in damage such as the following:
• Deteriorated, crumbling or loose plaster or stucco
• Deteriorated or ineffective waterproofing of exterior walls, roof,
foundation or floors, including broken windows or doors
Attachment No. 1
• Broken, split, rotted or buckled exterior wall coverings or roof coverings
• Visible internal water damage that indicates roofing failure
• Faulty Materials of Construction. The use of construction materials which are
not specifically allowed or approved by the Building Code, or the use of
approved materials which have not been adequately maintained in a good
and safe condition, shall cause a building to be substandard.
• Hazardous or Unsanitary Premises. The accumulation of weeds, vegetation,
junk, dead organic matter, debris, garbage, offal, rat harborages, stagnant
water, combustible materials and similar materials or conditions on a
premises shall constitute fire, health or safety hazards and shall be abated.
• Improper Occupancy. All buildings or portions thereof occupied for living,
sleeping, cooking or dining purposes which were not designed or intended to
be used for such occupancies shall be deemed substandard.
Structures with additions or modifications must comply with applicable building
codes. Substandard workmanship, unsafe items, or hazardous situations are not
acceptable. If repair of these items is not cost effective, the addition or modification
must be demolished.
The requirements outlined in this document do not preempt local or state codes or
ordinances, nor do they alter or affect a contractor's obligation to comply with local
or state law or requirements. All new work must conform to local codes. Any work
performed shall not cause existing buildings to become unsafe.
Existing buildings legally constructed in the past shall be considered acceptable today
unless they do not conform to specific local retroactive requirements as detailed in the
locally enforced building codes.
RESIDENTIAL HOUSING STANDARDS
Structural Requirements
• General. Residential structures may be of any type of construction that is
permitted by the Building Code. Roofs, floors, walls, foundations, and all other
structural components of the building shall be capable of resisting any and all
forces and loads to which they may be subjected. All structural elements
shall be proportioned and joined in accordance with the stress limitations and
design criteria as specified in the appropriate sections of the Building Code.
Buildings of every permitted type of construction shall comply with the
applicable requirements of the Building Code.
Attachment No. 1
• Shelter. Every building shall be weather protected as to provide shelter for
the occupants against the elements and to exclude dampness. The roof
covering shall be capable of accommodating required loads as specified in
the Building Code. The roof shall provide a barrier against the weather to
protect the supporting elements and the structure beneath. Roof covering
materials shall be approved and installed in a manner consistent with the
manufacturer's requirements and in accordance with the Building Code.
• Protection of Materials. All wood shall be protected against termite damage
and decay as provided for in the Building Code.
• Foundations. The foundation and its' structural elements shall be capable of
accommodating all superimposed live, dead, lateral, and all other loads in
accordance with accepted foundation design practices. Lots shall be
provided with adequate drainage and shall be graded as to drain surface
water away from foundation walls. Finish grade shall be below floor grade as
per the Building Code minimum requirements.
Space and Occupancy Requirements
• Location on Property. Newly constructed buildings shall be located with
respect to property lines and to other buildings on the same property as
required by the Building Code.
• Light. Habitable rooms within a dwelling unit shall be provided with natural
light by means of exterior glazed openings (i.e. windows, skylights) with a
minimum opening area of 10 square feet. Habitable rooms include those for
living, sleeping, cooking and eating. Bathrooms, closets, halls, storage or
utility space are not considered habitable rooms.
• Ventilation. Habitable rooms within a dwelling unit shall be provided with
natural ventilation by means of operable exterior openings (i.e. windows,
doors) with a minimum opening area of 5 square feet. Bathrooms, laundry
rooms, and similar rooms shall be provided with natural ventilation by means
of operable exterior openings with a minimum opening area of 11/2 square
feet. In lieu of required exterior openings for natural ventilation, a mechanical
ventilation system may be installed providing the number of air changes to
meet code for the room being ventilated.
Sanitation Requirements
• Plumbing Systems. An acceptable plumbing system consists of three
separate parts: an adequate potable water supply system; a safe, adequate
drainage system; and ample fixtures and equipment. All installations shall be
consistent with the Building Code.
• Septic Systems. A septic tank with the field located away from the house is
acceptable in rural areas. Documentation or certification is to be obtained
Attachment No. 1
from the local health department or authorized local agency indicating that it
is an approved sanitary system.
• Bathrooms. Each unit must have a bathroom. The bathroom must be in a
separate room with a flush toilet in operating condition. The unit must have a
shower or a tub with hot and cold water in operating condition. These
facilities must be connected to an approved disposal system. The facilities
may be scattered within the unit (such as a toilet in one enclosure and
washbasin in another area. The washbasin or sink must have a gas trap
(drain trap). Floors of bathrooms shall be resistant to damage from water or
dampness.
• Kitchens. Each dwelling unit shall be provided with a kitchen which is defined
as being a separate room or area of a larger room which is used primarily for
preparation of meals and storage of food. A bedroom with a refrigerator in it
cannot be defined as a kitchen. Defined by facilities contained, a kitchen or
kitchen area must have a separate kitchen sink for preparing food and
washing dishes, with piped hot and cold water which drains into an approved
system, a stove for cooking food, a refrigerator for storing food and facilities
for the sanitary disposal of food and refuse. The sink shall be of a
nonabsorbent material. All appliances must be free of hazardous conditions
including a damaged or broken stove, sink or refrigerator that endangers
users. There must be no evidence of gas or water leakage that presents the
danger of fire or electrical shock. The stove and refrigerator must be free of
potential hazards due to improper hookup.
• Fixtures. All plumbing fixtures shall be connected to a sanitary sewer or to an
approved private sewage disposal system. All plumbing fixtures shall be
connected to an approved system of water supply and be provided with hot
and cold running water, except water closets may be provided with cold water
only. All plumbing fixtures shall be of an approved nonabsorbent material. All
sanitary facilities shall be installed and maintained in a safe and sanitary
condition and in accordance with applicable requirements of the Building
Code.
Mechanical System(s) Requirements
• Heating. Dwelling units shall be provided with heating facilities capable of
maintaining a room temperature of 70° F. (21.1°C.) at a point 3 feet above the
floor directly or indirectly in all rooms used for living. Such facilities shall be
installed and maintained in a safe condition and in accordance with all
applicable laws and requirements of the Building Code. Un-vented fuel -
burning heaters are not permitted. Wood, wood pellet or similar heating
devices must be installed according to the manufacturer's directions and
according to applicable requirements of the Building Code. All heating
devices and wood burning heaters shall be of an approved type.
• Evaporative Cooling Systems. Evaporative cooling systems shall be installed
according to the manufacturer's guidelines. Evaporative cooling systems
Attachment No. 1
shall be installed so as to minimize the probability of damage from an external
source. Every evaporative cooler shall be accessible for inspection, service
and replacement without removing permanent construction.
• Electrical Equipment. All dwelling units shall be connected to electrical
power. Every habitable room shall contain at least one electrical convenience
outlet and at least one electric light fixture. Every water closet compartment,
bathroom, and laundry room shall contain at least one GFCI type electrical
convenience outlet and one electric light fixture. Every kitchen shall have at
least two GFCI type electrical convenience outlets and one electric light
fixture.
• Water Heaters. Gas water heaters may not be in bedrooms or other living
areas unless safety dividers or shields are installed. Water heaters are to be
properly installed and maintained with adequate venting, relief valves and
discharge lines conforming to current Uniform Plumbing Codes.
• Ventilation. Ventilation for rooms and areas and for fuel burning appliances
shall be provided as required in the Building Code. Ventilation systems shall
be maintained in good operational order.
Safety Requirements
• Attached Garages. Garages attached to dwelling units shall be completely
separated from the residence and its' attic area by means in accordance with
the Building Code. Openings from a private garage directly into a room used
for sleeping purposes shall not be permitted. Other openings between a
garage and residence shall be equipped with a properly fire rated self closing
door as prescribed by the Building Code. Garage and carport floor surfaces
shall be of approved noncombustible material. That area of floor used for
parking vehicles shall be sloped to facilitate the movement of liquids toward
the main vehicle entry doorway.
• Exits. Dwelling units shall have access directly to the outside or to a public
corridor. All buildings or portions thereof shall be provided with exits that
meet the local Building Code, Fire Code or considered adequate by the
appropriate local officials. Sleeping rooms shall have at least one operable
window or exterior door approved for emergency egress, escape, or rescue.
The unit must be operable from the inside to a full clear opening without the
use of separate tools.
• Smoke Detectors. Each unit must have at least one hardwired (with battery
backup) smoke detector in proper operating condition on each level of the
dwelling unit, including basements but excluding crawl spaces and unfinished
attics. Smoke detectors are to be installed inside of each separate sleeping
area or bedroom, in the corridor giving access to each separate sleeping
area, and where there is a ceiling elevation change of two feet or more.
Detectors must be installed in accordance with and meet the requirements of
Attachment No. 1
National Fire Protection Association Standard (NFPA) 74. If the unit is
occupied by any hearing -impaired person, smoke detectors must have an
alarm system designed for hearing impaired persons as specified by NFPA.
Attachment No. 1
EXHIBIT H
CALIFORNIA
NA' i.ONAL CITY
INCORPORATED
HOUSING REHABILITATION PROGRAM
SPECIFICATIONS AND TECHNICAL STANDARDS
The specifications on the following pages are incorporated by reference into every rehabilitation
contract entered into through the City of National City Residential Rehabilitation Program
(NCRRP). The standard specifications are grouped by trade and include general and specific
requirements for various rehabilitation tasks. All demolition, additions, alterations, modifications,
repairs, or improvements to property(s) and/or structure(s) performed shall fully comply with the
following regulations. The table below provides information on the regulatory components that
are referred to collectively herein as "local building code". These various components, taken
singularly or in total, provide the regulatory framework for the standards below and have
precedence over the standards. KNOW THE CODES!!!
City of National City Municipal Code Title 14 (Water and Sewer)
City of National City Municipal Code Title 15 (Building and Construction)
City of National City Municipal Code Title 18, Chapter 18.50 (Fences, Walls, Hedges)
City of National City Municipal Code Title 18, Chapter 18.54 (Landscaping)
City of National City Municipal Code Title 9, Chapter 9.12 (Fire Hazard Abatement)
City of National City Municipal Code Title 9, Chapter 9.16 (Garbage)
California Health and Safety Code Division 13- Housing Part 2.5
2010 California Building Code
2010 California Plumbing Code
2010 California Electrical Code
2010 California Mechanical Code
Attachment No. 1
2010 California Fire Code
1997 Uniform Housing Code
2010 California Energy Code
2010 Green Building Standards
California Code of Regulations, Title 8, Section 1529 (Asbestos Regulations)
Residential Lead -Based Paint Hazard Reduction Act of 1992 (Public Law 102-550) as
amended through April 21, 2005.
HUD Lead Safe Housing Rule
HUD Title X, Sections 1012, 1013, 1018
EPA Lead Renovation, Repair and Painting Program- June 23, 2008
California Civil Code 1941.1& California Health & Safety Code 17920.10, 17961, 17980,
10525 to 105257 (Lead Safe Housing and Lead Hazards)
Fair Housing for HOME Program Participants- released 2005
Fair Housing Act Design Manual- amended 1998
NOTES:
Substitutions: It is not desired of the Owner to exclude any product of quality equal to those
specified herein or in the Invitation to Bid. Trade names are generally used only to establish the
level of quality desired, but before any substitutes are made, the approval of the Owner and
NCRRP Staff must be obtained.
Measurements: All measurements and sizes stated or implied in the Invitation to Bid are
approximate only, and shall be verified by the contractor on -site.
Applicability: In the event of a conflict between these Standard Specifications and the Invitation
to Bid, the latter shall govern. Not all tasks for which bids might be solicited can be specified in
this Manual. Tasks for which methods and materials are not specified will be performed as
indicated in the Invitation to Bid and in accordance with the best practices of the trade.
SITE WORK
DEMOLITION AND DEBRIS
General Instructions: Demolition work shall conform to the requirements of all applicable codes,
ordinances and utility company regulations. Existing shrubs and trees to remain shall be
protected until demolition is complete and the site is cleared. Areas of grass killed by demolition
or by storage of debris and other materials shall be raked clean, leveled, and re -seeded, unless
Attachment No. 1
otherwise noted in the work list. All debris must be removed prior to final inspection and all
areas be left in a neat condition.
GRADING
Yards: Yards scheduled to be graded will be filled and/or raked smooth to finish grade that
ensures proper drainage of the lot. Backfill material shall be clean and free from debris, with no
wood scraps. It will be placed according to acceptable practices. Where applicable, the top 4
inches shall be top soil suitable for plant growth.
Rough grading shall establish a sub -grade parallel to and approximately 4 inches below the
proposed finished grade. Finished grading shall ensure that surface and ground water does not
collect either under slabs or at the outside face of basement and foundation walls. All surfaces
adjacent to foundation or basement walls shall slope a minimum of 2% (1/4" inch per foot) to
ensure adequate surface runoff. In no case shall surface waters be diverted into adjacent
private property.
Crawl Spaces: No wood surface shall be closer than 6 inches to any soil. If a moisture problem
is evident in the crawl space, grading shall be done to take surface water to best outfall. When a
furnace is installed in a crawl space, grading shall be done according to clearances defined in
Chapter Seven of the 2007 California Mechanical Code. Grading shall be done to take water
away from furnace location. All scrap wood and concrete forming materials shall be removed
from crawl spaces.
Site Drainage: All local ordinances regulating the disposal of storm water, including type of
piping, shall be followed.
Crushed Rock Surfaces: Remove any large rocks or foreign material. Where substantial
depressions exist, remove existing materials, fill with dense, well drained soil and grade to
obtain a uniform surface. Top with crushed rock in sufficient amount to achieve a total depth of
4 inches. Crushed rock surfaces shall not be installed on grade in excess of 7% (7/8" per foot).
The surface shall be crushed rock no less than 4 inches in depth. Borders shall be provided at
all perimeter edges to retain rock.
LANDSCAPE
Shrubs: When shrubs are to be removed, they shall be removed complete with roots. Any
depressions shall be filled with topsoil and the entire area raked smooth and clean.
New Planting: Type and size of new shrubs shall be as indicated in the work list.
Trees: When trees are scheduled to be removed, they shall be cut to a point as close to the
finish grade as possible. The NCHPP/owner may elect to have the stump(s) ground to ground
level. All debris shall be removed and the entire area shall be raked and/or broom swept clean.
Attachment No. 1
CONCRETE
GENERAL INSTRUCTIONS
When patching concrete, apply a bonding agent prior to application of flush patching material.
New concrete shall not be placed on extremely wet or frozen ground, and no concrete shall be
placed when temperature is less than 40 degrees F. or greater than 90 degrees F., unless it is
properly protected and controlled in accordance with recommendations of the American
Concrete and the Portland Cement Association.
The type of footing, foundation or slab system used shall be determined by load bearing
capacity of the soil. Soils of low bearing capacity necessitate provisions for greater load
distribution. On fill material, footings shall extend to undisturbed soil unless the fill has been
sufficiently compacted to insure against excessive differential or overall movement of the
structure.
PAVING
Sidewalks: Sub -grade shall be well drained and uniformly graded 3-1/2 inches below finish
grade. New concrete shall be at least 3-1/2 inches thick (@2,500 psi minimum). Finish surface
of new sidewalks shall be approximately parallel with that of adjacent soil; sidewalks shall be
constructed so as not to impede drainage of surface water away from the house and off the
property. Contraction (control) joints shall be placed 4 to 5 feet apart, but never more than 2-1/2
times in feet the thickness of the slab in inches. Depth of joint shall be 1/4 to 1/5 the thickness
of the slab. Width of new concrete sections shall be as indicated in the work list but will never
be less than 36 inches wide. Wearing surfaces shall be floated with a wood float and receive a
light broom finish. Concrete shall be properly sealed with a curing agent meeting ASTM
standard 309 or kept moist for a period of three (3) days to ensure proper curing.
FLATWORK
Deck Slabs and Patios: New deck slabs and patios shall be a minimum of 3-1/2 inches thick (@
2,500 psi minimum). Slab shall be reinforced as needed for each installation. Provide flashing
between the slab and wood construction. Slope the deck slab to drain away from the foundation
wall. Wearing surfaces shall be troweled and have non-skid texture. Control joints shall be
provided for all flatwork in accordance with industry standards.
Floor Slabs at or Below grade: Base for slab shall be well -compacted 4 inch sand -gravel sub -
grade. New slab shall be a minimum of 4 inches thick (@ 2,500 psi minimum). When available,
slope concrete to floor drains. Surfaces shall be troweled smooth.
FOOTINGS
Pier Blocks: New pier blocks shall be pre -cast or poured units. Block shall extend a minimum 4
inches above finished floor elevation or 6 inches above earth. They shall have the same or
larger top dimensions as the wood posts. Bottom dimension will be a minimum of 12 inches
square. Pier blocks shall have steel anchoring pins or recessed pockets.
Attachment No. 1
Post and Pier Footings (@2,500 psi minimum): Footings supporting wood piers shall extend
from a point at least 12 inches below grade to a point 6 inches above grade. They shall have
the same or larger top dimension as the piers. Bottom dimensions will vary with the footing
design. Pier blocks shall have steel anchoring pins or recessed post pockets.
Footings supporting masonry piers shall extend at least 12 inches below grade and have the
same top dimensions as the piers or a minimum of 12 inches by 12 inches.
Footings supporting a second floor load must meet requirement FOR STRUCTURAL
CALCULATIONS DETAILING SOIL CONDITION, LOAD CALCULATIONS, EARTHQUAKE
STANDARDS, and ETC. AS PER CURRENT BUILDING CODE REQUIREMENTS.
Footings for wood posts shall extend from a point at least 12 inches below finished floor
elevations to a point at least 4 inches above; footing shall have the same top dimension as the
post. When necessary to remove a section of existing floor slab, cut out a 12 inch by 12 inch
section using a masonry saw or chisel. Dovetail edges so that the opening at the bottom of the
slab is larger than the opening at the top. Remove enough earth to pour new concrete. Footing
shall sit on a 4 inch sand gravel base. Provide steel anchoring pin or galvanized brackets.
Finish concrete to match adjacent surfaces.
WALLS
Retaining Walls: New walls shall be gravity or cantilever type. They shall be structurally sound
and durable. Design walls to resist the lateral pressure exerted by the earth behind the wall,
including that material above the top of the wall. Retaining walls shall extend at least 12 inches
below grade and have a 6 inch wide layer of gravel, crushed rock or sand between the earth
and the wall, extending the full height of the wall. Provide reinforcement as needed and
construction joints at 30 foot intervals. Place weep holes 10 feet on center and at the lowest
point possible above grade. All weep holes shall be screened. All retaining walls constructed
adjacent to the public way shall have the design approved by the local planning/public works
department prior to commencement of work.
Foundation Walls: New walls shall be no less than 6 inches wide for wood frame and 8 inches
for masonry or masonry veneer and shall extend below finish grade as required for the
particular installation. Footing dimensions shall be determined by the thickness of the wall.
Provide reinforcement where needed. Concrete shall be poured continuously and vibrated to
remove air pockets. Where continuous pouring is not possible, provide construction joints with
reinforcement for transfer of stress. All wall openings shall be properly reinforced. Any existing
walls, intersecting walls, porch or entrance slabs, or areaways shall be anchored to the new
wall. One half (1/2) inch diameter anchor bolts shall be set no more than 8 inches into the
concrete at 8 foot intervals, or 6 foot intervals in earthquake design areas. The top of the
foundation wall shall be carefully finished and leveled for the sill plate. For foundation walls on
basement houses or where conditions warrant, the exterior face of the wall shall have at least
one coat of bituminous damp proofing material from footing to finish grade. New 4 inch drain
piping shall be placed at the perimeter of the footing, if required by ground conditions, and
connected to a storm sewer system or natural outlet. Backfill material shall be an appropriate
Attachment No. 1
sand gravel mixture for proper soil drainage, and the top 3 inches be topsoil suitable for plant
growth. Replace sod or install new sod.
STEPS
Poured Steps: New steps shall be as wide as the sidewalk and at least 6 inches to each side of
the entry door. The treads shall be a minimum of 9 inches, the risers a maximum of 7 1/2
inches and a minimum of 4 inches. Rise and run shall have a variance of no more than 3/8 inch
throughout flight. Provide 1/8 inch pitch for drainage. Wearing surfaces shall be troweled and
have a non-skid texture. Porch and steps will be poured a minimum of 2 inches below grade.
MISCELLANEOUS FORM WORK
Sump Pump Wells: New wells shall have at least 8 cubic feet capacity. Wells in crawl spaces
shall have 4 inches of gravel in the bottom. The crawl area shall be trenched to the well and
gravel installed where specified. Discharge from a well in a crawl space shall be to a code
approved outlet.
A sump well in a basement discharging to the sanitary sewer shall be vented as required by
Section 409 of the Uniform Plumbing Code.
MIX DESIGN
Footings, foundations, etc., shall be 2,500 psi minimum. Outside slabs, porches, stairs,
driveways, sidewalks and patios shall be 2,500 psi or 5.5 sack minimum with 5% ± 1.5% air
entrainment. Concrete pours should not exceed 3" - 4" slump. Calcium chloride is not to be
used as a curing accelerator.
MASONRY
GENERAL INSTRUCTIONS
Existing masonry units may be reused if undamaged and cleaned. New masonry units shall be
true to size without cracks, chips, or other defects. New masonry units shall match existing as
closely as possible. Repair and replace as specified in work write up. Where fresh masonry
joins existing, the exposed surface of the set masonry shall be clean and lightly wetted so as to
obtain the best possible bond with the new work. Lay masonry units plumb, square and
properly anchor by keying units or utilizing manufactured ties. Lay all courses with a full mortar
bed and tool all exposed joins. All grouted cells shall be vibrated twice. The color of mortar
shall match existing as closely as possible. Where applicable, back parge masonry below
grade. Mortar shall be protected from freezing until it has set. Thoroughly clean all exposed
new masonry and all repair areas. All new and repaired masonry installed below grade shall be
sealed.
REPOINTING -- TUCKPOINTING
Rake out all old mortar to a depth equal to the width of the joint or 1/2 inch, whichever is greater.
All deteriorated and loose mortar shall be removed, regardless of depth. Re -mortaring shall be
Attachment No. 1
done as specified under general instructions above. Trowel all mortar joints to a hard, smooth,
water tight surface, matching the shape of the original joint. Remove all excess mortar and
thoroughly clean all repaired areas.
PARGING: Parging is applying a smooth coat of mortar on a foundation wall. The end result
shall be a uniform smooth finish completely covering all exposed surfaces. Parging shall also
include raking out old mortar to depth 1/2 inch. Deteriorated and loose mortar shall be removed
regardless of depth.
CHIMNEY REPAIRS
When a chimney is to be repaired, this shall include re -pointing, replacing damaged or missing
masonry and installing a new cap or flue extension
• New chimney cap shall be at least 4 inches thick at the outside edge and shall slope away
from the flue.
• New flue extension shall be 5/8 inch fire clay. Joints shall be close fitting and left smooth on
the inside. The top of the flue lining shall be at least 4 inches above the top of the chimney.
CHIMNEY RELINE
Chimney relines, stainless steel or inflatable form fire clay, shall be done in accordance with all
applicable building and fire codes.
WALLS
Retaining Walls: New walls shall be structurally sound and durable. Walls shall be designed to
resist the lateral pressure exerted by the earth behind the wall, including the material above the
top of the wall. Masonry walls shall be constructed in accordance with the recommendations of
the National Concrete Masonry Association. They shall have a 6 inch wide layer of gravel,
crushed rock or sand between the earth and the wall, extending the full height of the wall. Block
shall be set in full mortar beds with joints tooled smooth, except where the exposed surface is to
be parged. Reinforce block laterally and vertically where needed and fill cavities containing
reinforcement with mortar. Place weep holes 10 feet on center, and at the lowest point possible
above grade. All weep holes shall be screened. The top course shall contain a bond beam or
be capped to provide a finished surface. All retaining walls constructed adjacent to the public
way shall have the design approved by the local planning/public works department prior to
commencement of work.
Block Foundation Walls: New walls shall be a minimum of 8 inches thick and shall have poured
in place concrete footings not less than 6 inches thick that extend below finish grade as require
by the particular installation. Block face shells shall provide a 1-1/2 inch wide mortar bed. The
first course shall be set in a full mortar bed. Joints shall not exceed 3/4 inch and shall be tooled
smooth, except those on an exterior face being parged. The joints between wall and footing
shall be tight and have a cove of elastic caulking compound on the exterior side. Stack bond
shall be laterally reinforced every second course. Provide other reinforcement where needed,
Attachment No. 1
or specified. Location of control joints shall be determined by the height of the wall. The top
course shall be filled or capped with at least 4 inches of solid masonry or wire mesh reinforced
concrete, unless the sill plate board rests on both inner and outer face shells. Anchor bolts shall
be placed no more than 6 feet on center and extend through sill and cap and two filled courses.
Walls shall be bonded, keyed, or anchored to existing and intersecting walls. Porch and
entrance slabs and areaways shall be anchored to the wall. All openings in the wall shall be
covered with at least one coat of Portland Cement parging no less than 3/8 inch thick. Walls
shall have at least one coat of bituminous damp proofing material from the footing to finish
grade. New 4 inch drain piping shall be placed at the perimeter of the footing if required by
ground conditions, and connected to a storm sewer or natural outlet. Backfill material shall be
an appropriate sand gravel mixture for proper soil drainage. The top 3 inches shall be topsoil
suitable for plant growth. Replace sod or install new sod unless otherwise specified.
MISCELLANEOUS METAL WORK
Ornamental Metal Handrails, Railing and Columns: New handrails, railings and columns shall
be installed complete with all posts, rails, pickets, base plates, rail supports, etc. Posts shall be
1 inch square heavy gauge steel tubing. Metal shall be wrought iron. Railings shall be single -
welded construction, railings welded t posts. Railings shall be securely anchored to porches,
steps, retaining walls, etc., and when installed on new concrete, posts shall be embedded in
concrete. Railing heights shall be as determined by code. Ornamental metal shall be factory
primed or factory finished.
Pickets shall be a minimum of 1/2 inch square tubing or solid bar. Scrolls shall be a minimum of
1/8 inch by 1/2 inch flat bar.
Prefabricated chimneys & Vents: All prefabricated chimneys, vents, and vent connectors
installed for use with any fuel burning appliance shall be installed in accordance with the
manufacturer's specifications.
CARPENTRY
GENERAL INSTRUCTIONS
Carpentry: All rough and finish carpentry shall be accomplished in such a manner as to provide
true, straight, square, plumb, level and rigid assemblies.
Framing Lumber: All softwood framing lumber shall be #2 or better fir except for non -bearing
partitions. Good quality hemlock (hem/fir) may be used for non -bearing partitions.
Framing lumber for girders, beams posts, columns and other structural members shall be of a
species and grade which will provide sufficient strength and rigidity to support the design load
without exceeding the allowable stresses consistent with good engineering practices, and shall
conform to Chapter 25 of the Uniform Building Code. All framing lumber shall be identified by
the grade mark of a recognized grading association. The moisture content of the lumber shall
not exceed 19% at the time of installation. New lumber in contact with masonry shall be
Attachment No. 1
pressure treated. All framing members shall be accurately fitted and securely connected to
each other in accordance with Table 25-D, Chapter 25 of the Uniform Building Code.
Board Lumber: The grade of board lumber shall be suitable for its intended use. In general,
loose knots or knot holes shall not exceed 1/3 of the width of the piece. Splits are
unacceptable. Boards with defects may be used if the defects are sawed out. Lumber shall
bear the label of a recognized grading association. Moisture content shall not be above 19% at
the time of installation.
Plywood: Plywood shall bear the label of a recognized grading association as to grade and
type. Type and grade shall be suitable for its intended use as designed and shall be installed in
accordance with Chapter 25 of the Uniform Building Code.
Finish Lumber. All finish lumber shall be dressed free of tool marks and other objectionable
defects. Lumber for exterior trim and millwork shall be kiln -dried or otherwise seasoned;
moisture content shall not be above 19%. All wood for interior wood trim shall be thoroughly
kiln -dried to withstand dry artificial heat; it shall not be installed until all plaster is thoroughly
dried out. Exterior wood trim and millwork shall be at least #2 or "D" cedar, except that casing
for doors and windows may be of clear pine or fir. New wood for interior trim shall match
existing as closely as possible in shape, size, and species. If not available, select pine or fir
may be used to manufacture trim of the same style and shape.
ROUGH CARPENTRY
Wood Porches: When a new porch is scheduled to be built complete, it shall include piers,
footings, beams, joists, 5/4 x 4 tight knot cedar decking, or other decking material as specified,
railings if specified, 3 foot wide steps and a roof if specified. The size of the porch shall be as
indicated on the worklist. Treads shall be treated (outdoor wood) unless otherwise specified.
Non-skid strips shall be installed when specified. Rise and run shall be according to Chapter 33
of the Uniform Building Code.
Wood Steps: When new steps are scheduled to be installed with rise and run the same as
existing, they shall include new stair jacks, treads and risers. Treads and risers shall all be even
but exceed requirements of Chapter 33 of the Uniform Building Code to maintain limited
headroom to a non -living or storage area.
FINISH CARPENTRY
Instructions for Wood Trim and Millwork: Exterior wood trim which cannot be repaired by re -
nailing shall be replaced. Existing interior trim which is broken, splintered, cracked, chipped,
warped or otherwise defective shall be replaced with new material. When drywall is being
installed over existing wall finish and cannot be butted up to existing trim, room shall be re -
trimmed (including door and window casings). All trim within a room shall be similar.
Insofar as practical, new trim and millwork shall be delivered ready to be put in place. Moldings
shall be clean cut and sharp. Single lengths of wood shall be used whenever practical. Splicing
or piecing of finish work shall be done with mitered joints over a solid backing. Finger jointed
Attachment No. 1
material is unacceptable for natural finish wood trim. Tooled materials shall be planed or
sanded smooth. The woodwork shall be installed level and plumb, be scribed neatly to the walls
and be secured firmly in place. Exposed nails used in fabrication and installation shall be
finishing nails, set 1/8 inch deep. The scribing, mitering and jointing shall be secured to prevent
separation. External corners shall be mitered. Protect finish woodwork until time of painting.
Cabinet Hardware: Hardware to be replaced shall include various knobs, catches, drawer
slides, drawer rollers, etc., necessary when building a cabinet. When scheduled to be installed,
all of the above found to be worn, defective or missing shall be replaced. New hardware shall
be brass or aluminum finish. All miscellaneous hardware within a room shall be similar in style
and finish. Mixing painted with unpainted hardware is unacceptable.
Repairing Kitchen Cabinets: All damaged or missing doors, drawers and shelving shall be
repaired or replaced as indicated in the worklist. Doors shall be properly aligned and shall
operate freely. Drawer guides or slides shall be repaired or replaced as scheduled so that
drawers slide or roll easily.
Kitchen and Bath Cabinets: Contractor shall verify in the field all cabinets and countertop
dimensions listed in the Invitation to Bid or shown on the drawings. Cabinet style and finish shall
be indicated in the contractor's bid as per specifications and/or related cost allowances. Should
new cabinets adjoin existing acceptable cabinets, the new cabinets shall match existing
cabinets as closely as possible.
Both wall and base cabinet assemblies shall be custom built on the job or consist of individual
units joined into continuous section, and with the exception of drawer cabinets, all units shall be
fully enclosed with backs, bottoms and panels, including tops for wall cabinets. Face framed,
when used, shall be of necessary thickness to provide rigid construction. Corner and lineal
bracing shall be provided where needed to insure rigidity and proper jointing of components.
Adjustable shelves shall be supported on ends and every 18 inches front and back. All shelves
shall be solid wood, edge banded plywood or fiber board type material. Cabinets shall have all
wood frames with face frames constructed of solid hardwood. Drawer and door fronts may be
constructed of plywood or fiberboard type material faced with birch, oak, or similar hardwoods.
Drawer and door front shall match cabinet fronts. Cabinet backs and sides may be particle
board with a plastic or wood veneer covering. Base cabinets that are designed to rest directly
on the floor shall provide a toe space at least 2 inches deep and 3 inches high. All exposed
construction joints shall be fitted in a workmanlike manner, nails shall be set and holes shall be
filled. Swinging doors shall have a device sufficient to hold doors closed. The device may be
spring catch, magnetic catch, self -closing hinges or equivalent. Doors shall be properly aligned
and operate freely. Drawers shall have drawer guides with nylon glides and shall slide easily.
Cabinet finish shall be clean and free from scratches and other defects. All wood surfaces,
inside and out, shall be finished and sealed.
Cabinet units shall be installed level, plumb and true to line. They shall be fastened to suitable
grounds as per manufacturer's instructions. New upper cabinets shall be attached with wood
screws; nailing cabinets is not acceptable. Use closers, filler strips and finish moldings when
needed for sanitary and appearance purposes. Upper cabinets shall be set 16-18 inches above
Attachment No. 1
the countertop and 24 inches at sink. At the range there shall a 30 inch clearance to the bottom
of the upper cabinet and 24 inches to the bottom of the range hood. Cabinets at the refrigerator
shall be set to clear existing refrigerator.
Countertops: Top materials shall be high pressure plastic laminate, at least 1/16 inch thick,
securely bonded to the base material. Countertops made on site shall use void free exterior
grade plywood or high density particle board for base material. Provide 1-1/2 inch front edges
and, unless specified otherwise, 4 inch back splash and end splashes. Color and pattern shall
be chosen by the owner. Should new countertop adjoin existing, the new material shall match
existing as closely as possible. If a new sink is not scheduled to be installed, re -installing the
existing sink shall be part of the countertop installation.
Metal Bathroom Accessories: All bath accessories shall be chrome plated unless otherwise
specified. All locations shall be checked with owner prior to installation. Bath accessories
specified for handicapped must comply with any and all California and Federal requirements
(Fair Housing, ADA, etc.)
THERMAL AND MOISTURE PROTECTION
Insulation: Insulation work shall comply with specifications on the Invitation to Bid and current
California Title 24 Energy Efficiency Standards. A certificate of insulation shall be posted on site
and a copy sent to the NCRRP.
SIDING
General Instructions: Remove all damaged sections before repairing existing siding. Sheathing
and framing behind siding must be solid. New siding shall match existing as closely as
possible. Apply siding with corrosion resistant nails long enough to penetrate into studs,
blocking and wood sheathing. Head lap and coursing shall be required to prevent entrance of
moisture into walls. Stagger joints in adjacent pieces of horizontal siding. Replace all trim
incidental to this repair and caulk all joints, paying particular attention to where siding abuts trim
or other material.
Porch Skirting: New skirting shall be as specified in the Invitation to Bid. When new skirting is
scheduled to be installed, existing skirting is to be removed completely. Install sufficient framing
or backing for new skirting. All wood shall be at least 6 inches above grade.
Vinyl Siding: Prior to starting work, the contractor shall examine the exterior of the house,
including the fascia and soffited areas, to determine if any additional repairs need to be
completed that will affect the proper installation of the siding. If any unforeseen repairs are
needed, the contractor will contact NCRRP Staff and request a change order.
New vinyl siding shall also include, unless otherwise specified, the following: window and door
wraps, fascia and soffited wraps, belly bands, porch trim and all exposed beams, posts and/or
columns.
Attachment No. 1
New vinyl siding shall have a lifetime manufacturer's warranty. Use aluminum or galvanized
steel nails with 5/16 inch to 3/16 inch diameter head and avoid face nailing where possible. All
nails should penetrate solid lumber a minimum of 3/4 inch excluding point. When going over 1/2
inch plywood sheathing, use screw shank nails with full penetration of the sheathing. The
contractor shall provide manufacturer's warranty information to the homeowner upon completion
of the work.
ROOFING AND SHEATHING
General Instructions: Prior to starting work, the contractor shall examine the roof to determine
that all repairs affecting roofing have been completed as scheduled. When new metal chimney,
vent stack, roof vent, etc. are scheduled to be installed, the contractor shall cooperate with other
contractors in installing flashing and counter flashing. This contractor shall also install new
flashing in place of all damaged, deteriorated or missing flashing incidental to the repair or new
installation. New flashing shall be installed in all valleys. The contractor shall seal all roof
openings and exposed roof edges, chimneys, porch roofs, dormers, skylights and vents, with
plastic asphalt cement as needed to insure water tight joints. Roofing shall be applied in
accordance with the recommendations of the manufacturer. Once it has been started, the roof
application shall not be delayed, except when absolutely necessary due to inclement weather.
Each layer of roofing felt shall have been surfaced or glazed by the end of the working day.
Should inclement weather arise it is the responsibility of the contractor to provide adequate
protection of the structure and is contents.
When a new roof is installed, roof vents shall be installed to provide adequate ventilation in all
attic areas as per current building codes.
New roofing installation shall conform to the requirements for the Underwriter's Laboratories,
Inc. Class C label or better; a copy of the guaranteed fire classification shall be provided to the
owner. New roofing material shall have a minimum 25 year manufacturer's guarantee.
When existing roofing is brittle, badly cupped, or rotted, new material shall not be placed over
existing. Final determination will be made by NCRRP staff.
The quality of materials and workmanship for repairs shall meet the same standards as new
installation. The contractor shall make repairs or replacements needed to roofing, flashing, drip
edges, cant strips, gravel stops, etc. to provide a water proof installation. When removing
damaged sections of existing roofing, replace asphalt saturated felt. Color, size and texture and
type of new roofing material shall match existing as closely as possible.
Asphalt or Fiberglass Roofing: For repair, since new shingles shall match existing in type,
repair procedure may vary from that for re -roofing with new seal downs. Therefore, install new
shingles as per manufacturer's recommendation to provide a watertight Class C label roof. For
new installations, when going over existing roofing, exposed edges shall be cut back to the
edge of the eaves and new metal drip edge installed. New roof shingles shall provide at least
double coverage at all points, including both eaves and rake edges. All new roof installations
shall have metal drip edges. If the gable end has no overhang, additional wood trim piece shall
Attachment No. 1
be installed so roofing projects at least 1-1/2 inches beyond the face of the siding. Metal drip
edge shall not be installed over new roofing material. New roof underlay shall be one layer #15
asphalt saturated felt and shall be double thickness from the eaves to a point not less than 24
inches beyond the inside face of the exterior wall. Seal double underlay lap to a point 24 inches
beyond the inside face of the exterior wall with a continuous layer of plastic asphalt cement.
Roof valleys shall be flashed with corrosion resistant sheet metal. New shingles shall be seal
down asphalt or fiberglass 3-tab, with a 25 year manufacturer's warranty. Minimum exposure
shall be 5 inches; minimum head -lap shall be 2 inches. Exposure shall be not less than that
required for U.L. Class C label. The starter course of shingles and rake shingles shall project
over eaves and rake edges approximately 1 inch. Nails or staples shall be corrosion resistant
roofing nails or staples and shall be long enough to penetrate sheathing or roof boards. Color of
roofing shall be owner's choice of standard readily available products.
Torch down Roofing Material: Torch down roofing material shall not be installed over existing
roofing. Remove existing roofing to wood deck or sheathing. Repair sheathing as needed or
specified. Install metal starter edge on all edges. Install torch down roofing as per
manufacturer's specifications. Supply the owner with a copy of manufacturer's warranty. Apply
a full coat of reflective top coat if specified.
Built -Up Roofing: For repair, remove existing gravel and broom clean roof area. Cut and repair
all blisters with hot asphalt. Reinforce low spots. Apply one ply of 40# asphalt -saturated felt.
Minimum end lap shall be 4 inches; minimum side lap shall be 8 inches. Cover felt with two
mop coatings of asphalt. Average mopping coats shall be 25# asphalt. Replace gravel stops at
exposed edges of built-up roofing where needed. All stops shall be properly secured and
lapped sections shall be sealed with plastic roofing cement. Mop all edges thoroughly.
Where roof drains occur in built-up roofing, the roofing for a distance of approximately 18 inches
in all directions from the drain shall be pitched towards the drain. Pitch shall be uniform.
Contractor shall repair roof drains to working order.
For new installations, remove old roofing down to sheathing. Nail base sheet according to
manufacturer's specifications. Base sheet to be 40# felt or equivalent nailed to decking. Then
embed 3 layers of 15# felt, mopping between layers with 25# asphalt. Flood coat surface with
30# asphalt and embed gravel or crushed rock. Gravel or crushed rock shall be included with
all new roof installations.
Asphalt Roll Roofing: New roofing shall be mineral surface asphalt roll roofing, with a minimum
weight of 90# per square. Coverage and underlay shall be the same as for asphalt shingle
roofing described above. End -lap shall be 19 inches minimum for a 3 foot wide roll. Starter
strip and edges of roofing shall project over eaves or rake edge approximately 1 inch. Nails
shall be corrosion -resistant roofing nails and shall be long enough to penetrate sheathing or roof
boards. Roll roofing used for low slope applications shall be selvage type or other product
specified by the manufacturer for low slope installations. Color of roofing shall be owner's
choice.
Attachment No. 1
Metal Roofing: New metal roofing shall be installed in accordance with the manufacturer's
recommendations. Maximum eaves overhang shall be 2 inches and roofing shall lap away from
prevailing winds. Full length sheets are to be used when possible. All roofing materials shall
carry a minimum 20 year manufacturer's warranty.
For new installations with a 4:12 pitch or greater, end lap of roofing panels shall be a minimum
of 6 inches; for roofs pitched under 4:12, end lap of the roofing panels shall be a minimum of 12
inches. All metal roofing installations shall include ridge vents and/or gable vents unless
otherwise specified.
All new metal roof installations shall include valley flashing, gable and eaves trim, foam ridge
and eaves closure, plumbing vent flashing and eaves and sidewall flashing. Roofing panels
shall be fastened to the base with metal screws with rubber washers; nailing is not acceptable.
Color of roofing shall be owner's choice of available colors, however, galvanized and aluminum
roofing will not be allowed.
Caulking: All loose, cracked, rotted and broken caulking shall be removed. Apply new caulking
at all roof openings and exposed roof edges. New caulking shall be plastic asphalt cement.
Clean immediately all brick, concrete or woodwork soiled during caulking.
Roof Flashing: When roofing or roof flashing is installed, new flashing shall be galvanized sheet
metal, .024 inch thick. Piping passing through the roof shall be flashed with one piece metal
flashing and cover or two piece flange and sleeve flashing. Nails shall be corrosion -resistant
nails and be long enough to penetrate sheathing. All openings through the roof shall be flashed
regardless of whether they were flashed previously.
Roof Sheathing: The repair of portions of existing sheathing shall result in the sheathing for that
entire area being on the same plane, so that when new roofing material is applied, the finish
surface is even. The quality of materials and workmanship shall meet the same standards as
new installation described below.
New sheathing shall be exterior grade 1/2 inch plywood, 3/8 inch exterior grade plywood may be
used over skip sheathing unless specified otherwise. Plywood sheets shall be installed in a
staggered pattern. If sheet edges do not meet on skip sheathing, H-clips shall be used between
each rafter run. Nails or staples shall be galvanized.
Nailing Instructions: For new roof installations over sheathing and felt only, stapling of shingles
is acceptable. Staples must be 16 gauge. zinc coated with a minimum crown of 15/16 inch, and
a minimum length sufficient to penetrate 3/4 inch into the sheathing. Staples must be driven
parallel to shingles length by pneumatic stapler, assuring that the crown bears tightly and flush
against the shingle without cutting the shingle surface.
When re -roofing over existing roofing, nailing of shingles is the only acceptable means of
anchoring the new roof, unless another method is designated by the manufacturer. Use 4-6
nails per shingle for composition or fiberglass shingles. Nails shall be galvanized, 11 or 12
Attachment No. 1
gauge with a head diameter of 3/8 inch. Nails shall be sufficient length to penetrate at least 3/4
inch in sheathing.
GUTTERS AND DOWNSPOUTS
Galvanized metal Gutters and Downspouts: Galvanized metal shall have corrosion preventative
coating on the inside surfaces. Gutters and downspouts may be baked enamel finish. Minimum
thickness of metal shall be 26 gauge. Only seamless gutters shall be installed. No joints will be
allowed except at corners and where downspouts attach.
New gutters shall be 5 inch OG ("K style) or half round type. Gutters shall be attached with
aprons and hangers or combination hangers every 24 inches on center. No exposed strap
hangers shall be used. Metal gutter installed over fascia boards on a house with no roof
overhang shall be attached to spacer blocks 24 inches on center on wood framing to get gutter
at least 3-1/2 inches away from siding and shall be properly flashed. Gutters shall be installed
with proper pitch to downspouts so that no water overflow can get back into framing members.
New downspouts shall be 2 inch by 3 inch corrugated rectangular or 3 inch corrugated round.
Downspouts shall be attached to gutters and be securely fastened with strap or cast hangers at
top and bottom. Provide at least one additional hanger for every 6 feet of downspout.
Downspouts shall be provided with extension pieces (elbows) located not more than 6 inches
above the splash block and pointed in the direction of flow. Splash blocks shall be installed with
all new gutter installations unless otherwise specified.
Aluminum Gutters and Downspouts: New gutters shall be 5 inch OG ("K type"). Aluminum shall
be baked enamel finish with corrosion preventative coating on inside surfaced. Minimum
thickness of gutters shall be 0.027 inch; minimum thickness of downspouts shall be 0.019 inch.
Only seamless gutters shall be used. No joints will be allowed except at corners and where
downspouts attach. Installation shall be the same as for galvanized gutters and downspouts.
Cleaning and Tightening Gutters and downspouts: When cleaning and tightening of gutter and
downspouts is scheduled, all joints shall be made watertight. All gutters and downspouts shall
be securely connected and firmly supported and fastened.
Splash Blocks: New splash blocks shall be either fiberglass or cast concrete and be installed in
such a manner as to direct water away from the building.
DOORS AND WINDOWS
GENERAL INSTRUCTIONS
Whenever a window assembly, sash or doors are being replaced, frames, headers and sills
shall be repaired to provide a true, straight, square, plumb, level and rigid enclosure for the new
installation. Flashing shall be replaced as needed. All openings between wood, masonry, and
metal shall be caulked. Should the openings be deeper than 1/4 inch, they shall be first packed
with a backing (flexible polyurethane, polyethylene, polyvinyl chloride, cured polysulfide, sponge
rubber, neoprene or butyl rod) manufactured for this purpose to within 1/4 inch of the face
Attachment No. 1
surface and then caulked. All new sash or doors shall fit tightly in their frames and shall operate
smoothly and easily. Contractor shall repair all trim supplementary to the operation of the sash
or doors.
When windows are to be glazed, new glass shall be dual pane insulating glass, unless
otherwise specified.
When storm doors are to be re -glazed, sheet plastic ("Plexiglas") may be used in place of
tempered safety glass.
All hardware within a room shall be similar in style and finish. New finish hardware shall be
furnished with the necessary screws, bolts, or other fastenings of a suitable size and type to
anchor the hardware in position for heavy use and long life. These fastenings shall harmonize
with the hardware as to material and finish. The finish hardware shall be securely fitted on
properly prepared surfaces in conformity with the hardware manufacturer's instructions and
templates. Carpentry cuts for the finish hardware shall be carefully and accurately made.
Screws shall be turned to a firm grip but not to the point of distorting the hardware and in no
case shall the screws be hammered into place. New doorknobs shall be positioned at the
height of the existing doorknobs in each building and the other hardware shall be uniformly
positioned.
EXTERIOR DOORS
Special Instructions: All exterior doors, except service doors for unheated garages and other
outbuildings, shall be fully weather-stripped.
Hinges for an exterior door swinging out shall have a setscrew in the barrel to prevent the
removal of the pin when the door is closed. Hinges shall be galvanized under plating to prevent
rusting.
All doors between a carport or garage and the house shall be solid core fire rated, or equivalent,
and have self -closing hardware.
Hardware and Stops for Exterior Doors: New entrance lockset shall be polished brass or
brushed aluminum finish. Cylindrical lock shall key outside with turn or push button on the
inside; lock shall have dead pin. Contractor shall furnish 2 keys with new hardware. Double
cylinder deadbolts are not allowed. New escutcheon plates shall be installed to cover unsightly
marks when replacing existing hardware. Floor, base or hinge door stops shall be installed for
all exterior doors.
Weather-stripping: Package shall include new weather-strip and door sweep installed to stop all
air infiltration around entire perimeter of door. New weather-stripping shall be cushion bronze,
interlocking aluminum, or compression -type vinyl. It shall be installed continuous around door
casing to prevent infiltration of dust, water, and wind.
Attachment No. 1
Thresholds and Jambs: New threshold shall be metal, water return type, with integral weather-
stripping and shall fit watertight with door. Caulk at exterior edge. New jambs and stops shall
be clear fir, pine, or mahogany. Thresholds shall be fully supported.
Wood Exterior doors: Type of new door shall be mahogany, solid core. Door shall be installed
with new entrance lockset hardware, deadbolt lock, self -closing hardware where required and
weather-strip package. Door shall be hung with three brass or brushed aluminum finish 4-inch
butt hinges. When door is to be painted, it may be paint grade. All exterior wood doors shall be
sealed upon installation. This shall include sealing the interior, exterior and all edges of the
door. Finish shall be of owner's choice.
Pre -Hung Wood Exterior doors: New pre -hung door package shall include solid core wood
door, jamb, casing, stops, trim, weather-stripping, threshold, all hardware and deadbolt lock.
Opening shall be trimmed. Unless specified differently, door will be mahogany. Follow
instruction for wood exterior doors. Thresholds shall be fully supported.
Pre -Hung Steel or Fiberglass Exterior Door Package: New pre -hung door package shall include
steel -clad or fiberglass door with wood or polyurethane core, wood jamb, casing, stops, trim,
weather-stripping and aluminum threshold, all hardware, and deadbolt lock. Opening shall be
trimmed. Door shall be hung with three brass or brushed aluminum finished 4-inch butt hinges.
Thresholds shall be fully supported.
INTERIOR DOORS
Hardware, Jambs and Stops for Interior Doors: New passage set hardware shall be polished
brass or brushed aluminum finish. Doors to bathrooms or toilet rooms shall have privacy lock,
push button or turn button on the inside. Escutcheon plates shall be installed to cover unsightly
marks when replacing existing hardware.
New jambs and stops shall be clear fir or mahogany. Finger jointed material is unacceptable.
Moisture content shall not be above 19%.
Wood Interior doors: Type of new door shall be as scheduled. Replacement panel doors shall
match existing as closely as possible. Louvered doors shall be ventilating type. Door shall be
installed with new passage set hardware and shall be hung with two brass or brushed aluminum
finish 3 1/2 inch butt hinges. When door is to be natural finish, it shall be stain grade wood or it
may be pre -finished. When door is to be painted, it may by paint grade. Finish shall be of
owner's choice.
WOOD PRE -HUNG INTERIOR DOORS: New pre -hung door package shall include wood door,
jamb, casing, stops, trim and all hardware. Type of door shall be as scheduled. Opening shall
be trimmed. Finger jointed material is unacceptable. See also descriptions above. Finish shall
be of owner's choice.
Attachment No. 1
BI-FOLD, SLIDING AND MISCELLANEOUS DOOR HARDWARE: When scheduled to be
repaired or replaced, finger pulls, knobs, push plates, door tracks, door stops, etc., found to be
worn, defective or missing shall be installed new. New hardware shall be polished brass or
brushed aluminum finish. All hardware within a room shall be similar in style and finish. Mixing
painted with unpainted hardware is unacceptable.
WOOD BI-FOLD DOORS: Type of new doors shall be as scheduled. Door shall be installed
with new hardware. When two pairs of doors are being installed, a door aligner shall be
provided where the center panels meet. Package shall include wood bi-fold doors, jambs,
casing, stops, trim and all hardware. Finish shall be of owner's choice.
WINDOWS
SPECIAL INSTRUCTIONS: A new window assembly shall include sash, jamb, casing,
mullions, frame, sill, stool, apron and all trim as appropriate to the particular type. Finger jointed
material is unacceptable when wood is to be natural finish. Window assemblies shall be
installed with all operating hardware and all sashes shall fit tightly in frames. All opening
windows shall have screens. All sashes shall be weather-stripped. All sashes shall operate
smoothly and easily.
Replacement sash shall match existing as closely as possible. Install new sash as per
manufacturer's recommendations, complete with new operating hardware. Operable sash shall
have some means of being secured. Sash shall fit tightly in frame to prevent infiltration of dust,
water and wind. New sash shall operate smoothly and easily.
New windows shall meet all requirements regarding light and ventilation and emergency exit
according to Sections 1204 and 1205 of the Uniform Building Code.
CHECKING, FITTING AND FREEING WINDOWS: A sash that is painted shut shall be freed
and the sash and its operating hardware shall be readjusted for smooth and easy operation.
Sash locks that are not scheduled to be replaced shall be repaired and realigned as needed to
firmly secure windows. When existing weights or counter -balances for double -hung windows
are found to be inoperative and cannot be easily repaired, new "quickie" or "jiffy" type spring
window controls shall be installed. Spring shall be fastened securely.
HARDWARE: All window hardware within a room shall be uniform in style and finish. New
hardware shall not be painted. Locking window hardware shall be cast metal type; stamped
metal type shall not be used. When locking hardware is scheduled to be replaced, finger lifts
and pulls shall also be replaced. New hardware shall be polished brass or brushed aluminum
finish.
STOPS, STOOLS AND APRONS: New wood trim shall be clear fir, hemlock, or mahogany.
Finger jointed material is unacceptable when wood is to be natural finish.
Attachment No. 1
ALUMINUM WINDOW SASH: New sash shall be anodized aluminum. Sections shall be
extruded aluminum alloy 6063-T5. Minimum nominal wall thickness shall be 0.062 inch.
Construction shall be in accordance with Architectural Aluminum Manufacturers Association
(AAMA) specifications. All operating sashes shall be fully weather-stripped. All sashes shall be
able to be easily removed from the inside for maintenance and re -glazing. After installation,
aluminum shall be thoroughly cleaned with plain water or a petroleum product such as white
gasoline, kerosene or distillate. No abrasive cleaning agents shall be used.
ALUMINUM WINDOW: New window frame shall be anodized aluminum. Sections shall be
extruded aluminum alloy 6063-T5. Minimum nominal wall thickness shall be 0.062 inch.
Construction of frame shall be in accordance with AAMA specifications and shall form neat
weather -tight connections. All operating sashes shall be fully weather-stripped. Weep holes
shall be provided at the factory. All sashes shall be able to be easily removed from the inside
for maintenance and re -glazing. When appropriate to the installation, new aluminum
assemblies shall have an anodized aluminum exterior "surround" designed to form an integral
union with the existing frame and be joined in a manner as to prevent any water or air
infiltration. Surround shall be the same construction as aluminum section described above.
Surround shall be sized to cover all exposed exterior wood trim and shall fit neatly into
openings. All opening windows shall have screens. After installation, aluminum shall be
thoroughly cleaned as listed above.
ALUMINUM REPLACEMENT WINDOWS: Replacement windows shall be anodized aluminum
and shall meet requirements as above except the minimum nominal wall thickness shall be
0.050 inch. Sections shall be extruded aluminum alloy 6063-T5.
WOOD WINDOW SASH: One -over -one type: New sash shall have spring or tension counter-
balances. "Quickie" or "jiffy" spring window controls are acceptable only when the existing
operating mechanism is unusable in the new installation. Window lifts and locking hardware
shall be polished brass or brushed aluminum finish.
VINYL REPLACEMENT WINDOWS AND VINYL STORM WINDOWS: New replacement
windows and storm windows shall be constructed of PVC vinyl. All meeting rails shall be
interlocking and weather -tight. Unit for double -hung storm window shall consist of self -storing
insect screen and two storms. Sash and screens shall be easily removed from the inside for
maintenance and re -glazing or repair. Storm doors and screens for all other types of windows
shall be compatible with their operation so that they can be removed with a minimum of effort.
Replacement inserts shall fit tightly in existing tracks. All operating windows shall have insect
screens; wherever possible, self -storing units shall be installed. Glass shall be Grade B or
better. Replacement screening shall match existing. New screening shall be anodized
aluminum or fiberglass screen cloth. Weep holes in the sill shall be provided at the factory.
Frame shall fit weather -tight in existing masonry or wood frame. Caulk at frame with sealant, if
needed. The bead shall be at least 3/8 inch across surface.
Attachment No. 1
FINISHES
PLASTER
PLASTERING: When patching plaster, all broken or damaged plaster shall be cut out to
straight lines with clean, sharp edges. New lath and reinforcing strips shall be installed if
needed. Use plaster bond material for proper adhesion of new plaster to existing. The areas to
be patched shall be filled with base material and then given a finish coat of the same material as
adjoining plaster. Patched areas shall match the adjacent work in finish and texture and be free
of bulges. Jointing shall be flush and smooth so that the joints between the existing and the
new plaster are undetectable. Cracks shall be V-jointed and bonded with fiberglass tape and
joint compound, in the same manner as a drywall joint.
Prior to application of new plaster, all bulging, loose or otherwise defective plaster shall be
removed. New expanded metal lath, plaster stops, grounds, corner and casing beads and
corner reinforcement shall be installed as needed. Support and fasten lathe to provide true
lines and surfaces for new plaster. Use flat reinforcing strips where existing and new plaster
surfaces butt together. Install reinforcing at all points where surfaces change or where cracking
is likely to occur. All metal shall be galvanized or coated with rust inhibiting paint. New
applications shall be three coat wet plaster over metal lath, two coat wet plaster over gypsum
"rock lath" or two coat veneer plaster system. Apply plaster with minimum thickness as
established by industry standards for the type of bases being used.
EXTERIOR STUCCO PLASTER: Remove all damaged stucco. Repair metal lath or wire
fabric. Over wood frame construction, apply new three coat finish and over masonry surfaces
apply new two coat finish. Scratch coat shall be uniformly roughed to provide a sound base for
brown or top coats. Top coats shall match existing in texture and finish. Do not apply stucco
plaster when the temperature is above 90 degrees F. or below 40 degrees F., or when the
temperature is not expected to remain above 40 degrees F. until initial set. Stucco plaster shall
be kept damp until initial set.
DRYWALL: Drywall installed over framing members shall be 1/2 inch on walls and 5/8 inch on
ceilings, except that for installations requiring a one hour fire rating it shall be 5/8 inch Type X.
Drywall installed over existing surfaces shall be no less than 3/8 inch on walls and 1/2 inch on
ceilings.
New drywall shall be tapered gypsum wallboard. When going over existing surfaces, first
remove all damaged material and fur walls or ceilings so that the finished product is properly
aligned. Edges and ends of wallboard shall occur on framing members, except those edges
and ends that are perpendicular to the framing members. To minimize end joints, use wallboard
of maximum lengths. Wallboard shall be first applied to ceilings, then to walls. When both sides
of partitions are to receive wallboard, stagger joints on opposite sides. Protect all vertical
exterior corners with corrosion resistant metal corner bead. When butting up to existing trim, cut
drywall carefully and use casing beads for all exposed edges. Where surfaces are to be painted
or wallpapered, joints shall be taped and both joints and nail depressions shall have three coats
of joint cement applied as per manufacturer's recommendations. All edges shall be feathered.
Attachment No. 1
Finish surfaces shall be sanded smooth and left straight and well aligned. Texture spray finish
is not to be used on ceilings unless specified otherwise. When used, texture spray shall be
medium texture, hard finish only --no course, polystyrene or other soft finish will be allowed.
Before application, prime ceilings with a vinyl primer or equivalent. Any existing surfaces to
receive texture spray must also be properly prepared for complete adhesion and non -burn
through. Application shall be as per manufacturer's recommendations. No finishing or drywall
shall be done unless inside temperature is at least 55 degrees F. This temperature shall be
maintained during and up to completion of finishing, including drying. Moisture resistant drywall
or concrete wallboard shall be used in areas subject to moisture and in bathrooms.
CERAMIC WALL AND FLOOR TILE AND CERAMIC TILE COUNTERTOPS: When repairing
existing tile, first remove all cracked, loose, chipped or otherwise defective tile. Then repair
setting bed or wallboard to provide a level surface for installation of new tile. When repairing
floor tile, wash adjacent areas with a solution to remove all oil film present. New tile being
installed next to existing tile shall match existing as closely as possible in size, color, texture and
glaze. When replacement tile does not match existing, replace complete rows or areas. Carry
rows and areas into corners.
New tile shall be installed in the following manner. Base surface shall be smooth and plumb or
level. Prior to application of adhesive, surface to receive tile shall be sealed with a water
resistant sealer compatible with the adhesive to be used. Sealer shall provide a firm and
durable bond to the base material. Tile adhesive may be used as the sealer when designed for
this purpose, but must be applied in a separate coat. Apply adhesive to entire surface to be
tiled with a notched spreader blade. New wall tile shall be standard grade, glazed ceramic tile.
New floor tile shall be glazed ceramic mosaic or ceramic tile as indicated in work list. Color of
tile shall be owner's choice. All tile installations shall be properly trimmed using caps, bases,
etc. Tile shall be set by "floating method". Allow at least 24 hours for evaporation of volatiles
from adhesive prior to grouting. Joints shall be thoroughly saturated and washed out with clean
water before grouting. All tile joints shall be filled with pointing grout. Joints between tub and
tile and joints between tile and any dissimilar material shall also be grouted and caulked with a
silicone sealant. Force grout into joints taking care that no open joints are left. Joints shall then
be sponged and tooled. New tile and any surrounding surfaces soiled during the repair work
shall be cleaned immediately. All exposed tile edges shall be bull -nose tile. (See Material
Allowances, Appendix A)
TUB/SHOWER SURROUND
Type of materials shall be as specified. All tub wraps shall be a minimum of 6 feet above
finished floor unless specified otherwise. All tub wraps shall include flush mount soap and grab
accessories. All tub wrap installation to include new water resistant drywall or concrete
wallboard unless otherwise specified. The owner's choice of color and design will be from
standard available products.
Attachment No. 1
HARDWOOD FLOORING: When repairing or replacing hardwood flooring, all defective
hardwood flooring shall be taken up from the sub -floor, using care not to rip or break the
tongues from the flooring strips of pieces that are intended for reuse. Flooring shall be shimmed
where necessary and be properly secured at points of bearing. The entire floor, both existing
and repaired, shall then be inspected for protruding nails, and nails found to have popped out
shall be countersunk. Replacement flooring shall match existing as closely as possible.
ASPHALT TILE, VINYL COMPOSITION TILE (VCT) AND SHEET VINYL: Replacement tile
shall match existing in type, size, pattern and texture. New tiles shall be residential grade.
Asphalt tile shall be 1/8 inch thick; VAT shall be 1/16 inch thick. Tiles shall be 9 inch by 9 inch
or 12 inch by 12 inch. Colors and patterns shall be homogeneous throughout the full thickness
of tiles. Color and pattern shall be owner's choice. Self-adhesive tiles will not be allowed.
New sheet vinyl shall have a wearing surface no less than 0.010 (10 Mils). Color shall be
owner's choice. It shall be installed full size with a minimum of seams. Seams will not be
allowed in doorways or other high traffic areas. When installed in areas of high moisture,
bathrooms and utility rooms, it shall be seamless. All floor coverings shall meet or exceed FHA
requirements and must be labeled as such. All sheet vinyl floor covering shall be installed
according to manufacturer's recommendations.
All surfaces to receive resilient flooring shall be clean, dry and level. All cracks, depressions
and voids shall be filled or repaired. Concrete floors shall not vary from a level surface more
than 1/8 inch in 10 feet in any direction. Where leveling is required, leveling latex for concrete
shall be used. Prime concrete slabs on grade or below grade with a cut back before applying
adhesive. For all installations, use the adhesive recommended by the resilient flooring
manufacturer and apply as per instructions. All flooring shall extend under the base shoe
molding. Resilient flooring shall be laid with tight joints at all points of contact. Tile stops shall
be installed at all exposed edges and changes of material, and stair treads shall have edges as
described below. New rubber or vinyl cove base shall be considered a part of a new floor
covering unless the owner wishes to reuse existing wood base.
New underlayment shall be underlayment grade plywood, or suitable materials approved by
sheet vinyl manufacturer, developed for use under resilient flooring. Masonite or tempered
hardboard will not be allowed. Underlayment shall be 3/8 inch except that 1/4 inch
underlayment may be used over plywood sub -flooring or T&G boards not more that 3 inches
wide. 1/4 inch underlayment shall be securely screwed every 3 inches on center at the
perimeter and every 6 inches on center at intermediate supports; 3/8 inch underlayment shall be
securely screwed every 6 inches on center at the perimeter and every 8 inches on center at
intermediate supports. Nailing or pneumatic stapling will not be allowed for underlayment
installation. In all cases floors receiving new underlayment shall be smooth and free from any
uneven joints, bulges and depressions. When resilient flooring is to be installed directly over
sub -flooring, the sub -flooring shall be combination sub-floor/under-layment plywood (void free).
Types and grades shall be the same as for plywood underlayment. Thickness shall be
determined by span and spacing of floor joints.
Attachment No. 1
CARPET OR TILE STOP: New divider edge shall be aluminum, approximately 1 inch wide. It
shall be attached with countersunk aluminum screws.
STAIR EDGING: New stair tread nosing shall be aluminum or rubber or vinyl. Nosing shall be
installed on each tread and landing. Installation shall be per manufacturer's recommendations.
COVE BASE: New base shall be minimum 2-1/2 inch rubber or vinyl cove base unless
matching existing base of a different height or otherwise specified. Use preformed inside and
outside corner pieces and an adhesive recommended by the manufacturer. Base shall be
neatly installed and be firmly cemented to walls and floor. Joints where bathroom floors meet
walls shall be watertight. All corner pieces shall be neatly cut and tight fitting; wrap around
corners will not be allowed. Use adhesive recommended by the manufacturer on all cove base.
Color shall match new or be compatible with existing resilient flooring. Pre -finished wood base
will be allowed and specified for certain applications.
CARPETING AND CUSHIONING: New carpeting and cushioning shall, as a minimum, conform
to those specifications contained in HUD UM-44C. Type, color and pattern of carpeting shall be
owner's choice. Bonded urethane cushion shall conform to HUD UM-47. Carpet shall be
installed according to the best standards of the trade. The contractor shall provide a certificate
to the owner stating the carpet installed is FHA approved or meets the minimum standards
required for FHA approval. When carpet is installed in a specific room, all closets shall be
considered as part of the room. See Material Allowance Attachment for cost details.
APPLIANCES
EXHAUST FANS AND DUCTED RANGE HOODS: Ventilation equipment shall bear the label
of approval of a nationally recognized testing agency, and a Home Ventilation Institute or
manufacturer's label showing capacity. Duct work shall be ridged metal and designed for the
shortest practical run to the exterior. Installation of duct work shall comply with current
mechanical code requirements . Discharge openings through roofs and walls shall be protected
against entrance of rain, snow and wind. Exhaust fan units shall be installed complete with
louvers and back draft dampers which will automatically close to prevent a reverse flow of air
when the fan is not in operation. Duct ends shall be sealed and mechanically fastened. When
replacing an existing fan, existing ductwork and related accessories may be reused if they are in
good condition and appear to have a remaining life equal to that of the fan. Existing ductwork
shall be inspected for obstructions and continuity. Ductless range hoods shall not be installed.
When a bathroom fan is installed, it shall be installed complete with switch (of specified type),
ductwork and all accessories unless specified otherwise. Fan motor shall be moisture proof and
UL listed. Fan shall be wall switched; switch may be separate from light switch. Fan shall be
rated for insulation cover. Size of fan will be specified in the Invitation to Bid. Grille shall be
anodized aluminum or plastic. Undercut door if necessary for air movement.
When a kitchen exhaust fan is to be installed new, it shall be installed complete with switch,
ductwork and all accessories. Fan motor shall be UL listed. Fan shall be wall switched; switch
Attachment No. 1
shall be separate from light switch. Fan shall provide a minimum of 15 air changes per hour.
Grille shall be anodized aluminum or plastic.
Range hood shall be installed complete with ductwork and all accessories. Unit shall include
recessed light and removable, washable grease filter. Color shall be owner's choice.
All venting and ducting practices and materials must meet NCRRP Specifications and 2007
California HVAC Code Standards and 2008 California Title 24 standards at a minimum.
PLUMBING
GENERAL INSTRUCTIONS
All materials, piping, fittings, fixtures, etc., shall conform to the latest ANSI (American National
Standards Institute), ASTM (American Society for Testing and Materials), CS (Commercial
Standards) and FS (Federal Specifications) standards. All equipment and materials used shall
be new and clearly marked to permit identification of manufacturer, model and type. Installation
and materials of fixtures specified for the handicapped must comply with the provisions of the
Fair Housing Act, Fair Housing for HOME Program Participants, Fair Housing Act Design
Manual and all other federal, state and local requirements.
The contractor shall furnish all instruments, gauges and equipment required for testing and shall
perform those tests required by the related authorities. Equipment, materials or work found to
be defective during testing shall be replaced by new work and be retested until proven
satisfactory.
All replacement sewer, water or gas systems shall be installed complete and, if necessary, final
connections shall be made to the sewer main, gas meter, or water meter.
All equipment and items installed under this section shall operate safely, without leakage, undue
noise, vibration, corrosion or water hammer. All fixtures shall be securely supported so that no
strain is placed on the connected piping. All work, fixtures and materials, shall be protected at
all times. All service and supply lines installed in a location where freezing may occur shall be
insulated with closed cell foam insulation, or wrapped with fiberglass batt insulation without
vapor barrier. If pipe insulation is to be done by the insulation contractor, notice will be given in
the Invitation to Bid.
All excavation and backfill necessary for the installation of new underground piping shall be part
of the work of this section. The trenches shall be backfilled evenly and be thoroughly
compacted using acceptable fill materials. In no case shall the excavation for the trenches
undermine or disturb the building foundation.
When a rough -in for new equipment requires connections to the existing plumbing system, the
contractor shall obtain necessary data on locations, sizes, connections, fittings, and
arrangements needed to ensure proper installation of that equipment.
Attachment No. 1
All drilling, cutting, and patching necessary for a proper installation of work under this section
shall be done by the contractor. All patching shall be of the same materials, workmanship and
finish as the original work and shall accurately match all surrounding work.
Fixtures and equipment furnished by others which require plumbing connections to waste,
water, vent or gas piping shall be connected by the contractor.
All work shall be done without damage to structural members.
Sleeves shall be provided where required and upon completion of rough -in work, sleeves shall
be made sound and fire tight.
Penetration of stud and masonry walls, floors, and ceilings shall be fire stopped.
All joints and connections in the plumbing and drainage systems shall be gas and water tight for
the pressures required by the test of the system, with the exception of those portions of piping
which are installed for the purpose of leading ground or seepage water to the underground
storm drains.
The contractor shall be required to wet test all plumbing systems at the expected working
pressure of the system after repair and/or replacements have been made.
Existing plumbing systems, or portions thereof, including building sewers (side sewers), to
remain in use shall operate free of fouling and clogging, and shall not have cross -connections
which may cause contamination of the water supply by back -siphoning.
Gas lines shall be blown clean with compressed air, and all valves and filters shall be checked.
All remaining plumbing fixtures and piping not in use shall be disconnected and removed by the
contractor.
All escutcheon plates shall be installed tight, caulked if necessary. The entire new and existing
installation shall be left in a neat, clean, and usable condition.
WATER, SEWER, FUEL AND VENT PIPING
GENERAL INSTRUCTIONS: New piping at the exterior of a building shall be at least 18 inches
below grade. Piping shall run parallel to the building construction and be neat and workmanlike.
Piping shall be concealed in walls, below the floor, above the ceiling or in furred spaces. Piping
shall be properly supported and be pitched to drain. Water and gas piping shall be run level
without pockets and as straight as possible. New hot and cold water supply lines shall be at
least 6 inches apart where parallel. Expansion and contraction shall be provided for by swing
joints. New soil, waste, vent and drainage piping shall be run at a uniform grade of at least 1/4
inch per foot (2% grade). Lines under slabs shall have as short a run as possible and the run
shall be as straight as possible. Copper lines shall be wrapped with plastic tape where they
come in contact with any metal other than brass or lead. All connections between copper or
brass and steel piping shall be made with dielectric couplings. All metallic piping shall be
bonded together. Screwed pipe joints shall have threads cut the full thickness with new, clean
Attachment No. 1
dies. The joints shall be carefully reamed and pipe joint compound shall be applied smoothly to
the male threads and to the threads left exposed after fabrication.
REPLUMBING HOUSE TO CODE: This is an instruction to the contractor and means that all
water distribution piping, soil, waste and vent piping shall be installed new. Only the installation
or repair of individual plumbing fixtures shall be listed in the work specifications.
WATER SERVICE: New water service shall be of sufficient size to permit a continuous and
ample flow of water to all fixtures at all times. Frictional losses due to piping, meter, valves,
fittings and faucets shall be considered when piping size is being determined. The water
service pipe shall be installed in such a manner and shall possess the necessary strength and
durability to prevent leakage under all likely adverse conditions, such as corrosion or strains due
to temperature changes, settlement, vibrations and superimposed loads. The contractor shall
be responsible for providing the meter and all necessary piping to complete the installation and
to coordinate installation of the meter with the Water Department.
GATE VALVES: The water piping on the discharges side of the water meter shall have a full
way gate valve with bleeder screw. Gate valves shall be readily accessible, whether located in
the basement, crawl space or within the living space itself.
WATER SUPPLY (DISTRIBUTION) PIPING: New distribution service lines shall be hard
temper type M copper tubing or galvanized steel. New branch service lines shall be no less
than 1/2 inch. Rodent proof penetrations shall be made through floors.
HOSE BIBBS: Hose bibs shall be located according to work specifications to provide an outside
source of water. Hose bibs shall be frost proof type or have separate accessible stop and waste
valve or readily accessible inside shut off.
BUILDING SEWER (SIDE SEWER): All sanitary plumbing outlets shall be connected to
combined or sanitary sewer systems when they are available. A new building sewer shall be
constructed of case iron, vitrified clay, concrete or plastic. The sewer shall be constructed with
watertight joints, be on a grade not less than 1/8 inch per foot, be laid on a firm bed, and be at a
depth not less than 18 inches below grade. No tees of 90 degree ells shall be used. Cleanouts
shall be installed as required by Uniform Plumbing Code. All abandoned septic tanks shall have
sewage pumped and be filled with gravel or sand.
SEPTIC SYSTEM INSTALLATION: New septic systems shall be installed in compliance with
approved design and inspected and approval by a county health official.
SOIL AND WASTE PIPING (INCLUDES DRAINS AND STACKS): Soil and waste piping and
fitting shall be extra heavy or service weight cast iron, galvanized steel pipe, copper pipe or hard
temper type K,L,M, or DWV copper tubing, or plastic approved under City and/or County codes.
Soil stacks shall rest solidly at the base on masonry piers or heavy iron posts and be supported
at intervals of no more 10 feet by stout wall hangers or brackets or on beams at each floor. No
new soil or waste pipe shall be installed or permitted outside a building or be in any place where
it may be subjected to freezing temperatures, unless adequate provisions is made to protect it
from frost.
Attachment No. 1
FLOOR DRAINS: No floor drains shall be installed in any location or manner which will interfere
with proper functioning. The drain shall connect to the sanitary drainage system with an
approved trap having a minimum 3 inch depth of seal. Drain shall have a backwater valve if the
drain is below the elevation of the curb or property line. See also description for piping.
SUMP PUMPS: New sump pumps shall be submersible type. When connected to the sanitary
system discharge line piping shall have an accessible backwater valve and gate valve. The
connection from the discharge line to any horizontal sanitary drainage piping shall be made from
top through a wye branch fitting. All installations shall be done in accordance with Section 409
of the Uniform Plumbing Code.
ROUTING DRAINS AND BUILDING OR SIDE SEWER: Drains scheduled to be routed shall be
cleaned with a power driven rotary clean -out apparatus similar to the roto-rooter device.
Cleaning area drains shall include either replacing or re -caulking the drainage strainers.
Building sewers and side sewers scheduled to be routed shall be cleaned all the way to the
main sewer connection(s). Drains, when routed, shall be free of all miscellaneous debris so as
to allow the free and unobstructed flow of liquids and solids.
VENT PIPING: New vent piping shall be schedule 40 galvanized steel pipe with standard black
cast iron screwed fittings, DWV copper tubing or plastic approved under code. Vent piping shall
extent at least 6 inches above finish roof surfaces. Re -vent piping shall be at least 1/2 of the
diameter of the drain to which it is connected or be a minimum of 1-1/4 inch in diameter. Re -
vent shall tie into soil stack or waste stack at a point at least 6 inches above the last fixture
connected to the stack. No new vent piping shall be installed on the exterior of the building. All
new vents shall be concealed in the wall.
New piping passing through the roof shall be flashed with a not lighter than 26 gauge galvanized
metal flashing assembly or plastic flashing. Flashing shall be set in waterproof mastic
compound and be caulked around the vent. Flat roof flashing shall be the commercial type with
a horizontal leg equal all around the base.
FUEL PIPING: New fuel piping shall be black pipe. Pipe shall not be bent and offsets shall be
made with fittings. Installation shall comply with all requirements of the applicable codes noted
above.
PLUMBING FIXTURES
GENERAL INSTRUCTIONS: New plumbing fixtures shall be standard builder's models unless
otherwise specified. Unless otherwise indicated, color of new fixtures shall match existing or be
white.
Fixtures shall be installed complete and ready to use. Appropriate grounds and supports shall
be provided for each fixture and equipment item. Arrangements shall be made with other trades
for the installation of built in items, blocking or necessary supports. Coordinate installation of
plumbing fixtures with floor contractor.
Attachment No. 1
All new exposed trim, fittings and pipe in finished spaces shall be chrome plated brass or be
covered with chrome plated brass sleeves.
WATER HEATER: Package shall include a new glass lined, quick recovery water heater, size
as specified. Heater shall be equipped with a shut off valve on the incoming waterline, a
pressure/temperature relief valve, (150 # and 210 degree rating) with a discharge tube to the
outside of the dwelling or to 24 to 6 inches of a garage or basement floor having drainage.
Heater shall be installed with wiring, or fuel piping, draft diverter and vent, as appropriate to
type. Heater shall have a 5 year warranty on the tank, and shall be U.L. listed or American Gas
Association certified. When new water heaters are to be relocated, they shall be installed to
provide the shortest run possible from the new water heater to all fixtures.
Flue pipe for gas water heaters shall be at least 28 gauge galvanized sheet metal. It shall have
a minimum slope of 1/2 inch per foot with no horizontal lengths of pipe exceeding 75 % of the
height of the chimney or vent. Flue or vent connections shall have a diameter not less than the
vent outlet on the heater. The flue pipe shall extend beyond the fire clay lining, but no flue pipe
shall be vented into a chimney which is used for a fireplace or has a wood stove or wood
furnace connected. Flue pipe can be vented into Class B vent.
KITCHEN SINK: Package shall include new porcelain enameled or heavy duty stainless steel
countertop sink, swing faucet with spray attachment and hose, removable cup strainers, fixture
stops and supplies, and waste with trap. Sink shall have ledge unless space restrictions require
otherwise. Entire unit shall be connected to service and waste lines. It shall be the
responsibility of the plumbing contractor to cut the hole for the sink.
LAVATORY: Wall mounted package shall include new porcelain enameled steel or cast iron
lavatory, faucets with trip waste, fixture stops and supplies, trap, and wall hanger and legs.
VANITY: Package shall include new vanity base, countertop with back splash, porcelain
enameled steel lavatory, center set faucets with trip waste, fixture stops and supplies, and trap.
Lavatory may be one piece basin or countertop. Quality of vanity sink base and countertop
shall equal that of new kitchen cabinets and countertops. New vanity base to be a minimum 24
inch width unless specified otherwise.
TOILET: Package shall include new vitreous china bowl (siphon jet action type) with close
coupled tank and cover, plastic seat, new flange and wax ring, bolts and caps, fixture stop and
supply, float -less valve and trip lever. Plastic tanks are not acceptable. When installing or re-
installing a toilet they shall be caulked around their base with silicone caulk.
BATHTUBS: Package shall include new porcelain enameled steel bathtub, pop-up waste and
overflow with trap, concealed shower divider with trim and fittings. Tub will be recess type 5 feet
by 30 inches, unless otherwise specified.
SHOWER STALL: Package shall include new fiberglass base, size as specified, with trap, vent
and concealed faucet and shower leg with all trim and fittings. Shower stall wrap shall either be
plastic laminate, or three piece rigid molded fiberglass unit over new water resistant drywall or
Attachment No. 1
concrete wallboard. (Type of wrap will be specified in work list.) Free standing shower stall and
shower stalls designed for corner installation will not be allowed unless specified.
ELECTRICAL
GENERAL INSTRUCTIONS
All materials and equipment used shall conform to the latest UL and ANSI and FS standards, as
well as to all other applicable standards. All materials and equipment used shall be clearly
marked to permit identification of manufacturer, model and type.
The contractor shall furnish all instruments, gauges and equipment required for testing and shall
perform those tests required by the related authorities. Equipment, materials or work found to
be defective during testing shall be replaced by new work and be retested until proven
satisfactory.
All new materials shall be in good condition. Each type of material shall be of the same quality
throughout the project.
All finished parts of the equipment and equipment for the work of this section shall be protected
against damage from whatever cause during the progress of the work and until final completion.
All electrical materials and equipment in storage and during construction shall be covered in
such a manner that no finished surfaces will be damaged or marred.
All wiring, fixtures, switches, receptacles, etc., shall be installed with all accessories.
Fixtures, equipment and materials furnished by others which require electrical wiring,
connection, or related electrical work shall be connected by the electrical contractor.
The contractor shall in no case install permanent electrical equipment that may be damaged by
the rough in for heating, ventilation, or plumbing equipment.
The contractor shall do all drilling, cutting and patching required for the installation of the work
under this section. All patching shall be of the same materials, workmanship and finish as the
original work and shall match all surrounding work, painting excluded.
All electrical equipment and exposed wiring not in use shall be disconnected and removed.
The contractor shall keep all parts of the building and site free from accumulation of rubbish and
waste materials caused by work under this section and shall remove such accumulation from
the site. All parts of the electrical apparatus and equipment shall be thoroughly cleaned of
cement, plaster and other foreign materials and be left smooth and clean.
When a new service is installed it shall be the electrical contractors' responsibility to insure that
all obstructions to the service drop are removed.
The electrical contractor is responsible for disconnect and reconnect fees from the utility.
Attachment No. 1
WIRING: All conductors shall be plainly marked or tagged as follows: 1) Underwriter's
Laboratories, Inc. label; 2) Size, kind and insulation of the wire 3) Name of the manufacturing
company and the trade name of the wire; Month and year when manufactured (date shall not
exceed 8 months prior to the date of delivery to the site, except for feeders).
Hot water heater circuit shall be #10 copper AWG., 30 amp circuit.
Range circuit shall be #6 copper AWG, 50 amp circuit.
Branch circuit wiring for 20 amp circuits shall be #12 copper AWG and all other branch circuit
wiring shall be no smaller than #14 copper AWG.
Unless otherwise required by code, all new wiring shall be sheathed cable. New 15 and 20 amp
circuits shall be 2 wire with ground.
Outlet boxes shall be the pressed steel knockout type or be cast iron with drills, tapped and
plugged holes and be hot dipped galvanized. Outlet boxes may also be approved non-metallic
type. All boxes shall be of the proper size for the number of wires or conduits passing through
or terminating in the box. Approved factory made knockout seals shall be used in all boxes
where knockouts are not intact. All outlet boxes shall be accurately placed and securely
fastened to the structure independently of the conductor. The plastic rings shall be set flush
with the surface of the ceiling or wall. The hangers for the light outlets shall have adjustable
studs. Surface mounted boxes and "Wire Mold" are acceptable only if areas for new circuits are
not accessible in any manner without doing severe damage to walls and ceilings.
When work is completed, the wiring and connections shall be tested for continuity, short circuit,
proper grounding and GFCI function.
REWIRE HOUSE TO CODE: New electrical service and all branch circuit wiring, fixtures,
switches, receptacles, cover plates, etc., shall be installed new according to the National
Electric Code. Only minimums will be required, and only special additional work such as wiring
to detached garages, additional fixtures, special devices, etc., shall be listed in the Invitation to
Bid.
GARAGE CIRCUIT: New circuit to the garage shall be an independent branch circuit of 20 amp
capacity. Circuit shall include new conductor, a keyless (switched) fixture for each parking
space and at least one GFCI protected receptacle. Service shall be installed complete with all
wiring and accessories.
FURNACE CIRCUIT: New circuit shall be an independent branch circuit of 15 amp capacity.
Contractor shall wire the circuit from the junction box located near the heating unit.
LAUNDRY CIRCUIT: New circuit shall be an independent branch circuit of 20 amp capacity.
Receptacle for the washing machine shall be a 20 amp, 120 volt, duplex grounding type,
mounted on the wall behind or adjacent to the laundry area. When installed new, the wall
receptacle shall not be higher than 48 inches above the floor.
Attachment No. 1
SMALL APPLIANCE CIRCUITS: New circuits shall be 20 amp capacity with two duplex
grounding type outlets. When two new circuits are to be installed, a minimum of four grounded
receptacles shall be provided and wired to these circuits. When these circuits also serve a
pantry, dinette, breakfast room and dining area, the receptacles for these areas shall be equally
divided between the extended circuits. All new kitchen circuits/outlets shall be GFCI protected
in accordance with the National Electric Code.
SPLITTING CIRCUITS: Splitting circuits shall include providing dedicated circuits for the
following: 1 small appliances (kitchen), 2 washing machine, 3 freezer, 4 furnace, 5 dishwasher,
6 microwave oven.
DRYER CIRCUIT: New circuit shall be a dedicated branch circuit of 30 amp capacity (#10
AWG). Receptacle shall not be higher than 48 inches from the floor.
REPLACING WIRING: When existing wiring is to be replaced, all exposed wiring (wiring not
concealed behind finished surfaces) shall be removed back to the panel box. Then new
sheathed cable shall be installed for all branch circuit wiring in the basement, attic and crawl
space. Installation shall be complete, including all wiring and accessories.
ELECTRICAL SERVICE
Size of new service shall be as indicated in the Invitation to Bid. Service package shall include
new service entrance and meter base, new panel box and ground, and new service mast or
service knob with support. Service shall be underground where required. Contact the utility
company prior to installing service equipment to verify location of new service drop. All existing
panels and sub -panels shall be taken out of service. Contractor is responsible for disconnect
and reconnect fees.
Panel installed with new service shall be main breaker panel with room for at least 20 circuits
(main breaker and panel shall be consistent with the size of the service entrance). Panel box
shall be flush or surface mounted as required. Panel shall be installed in a convenient and
protected location.
Service equipment shall not be located in stairwells, bathrooms, clothes closets, attics, above
plumbing fixtures or above laundry and kitchen appliances. Sufficient clearance and
accessibility shall be provided when installed in basement near laundry trays, oil tanks or other
permanent obstructions. Prior approval will be required if panel is to be located on the exterior
of the building; this panel shall be weatherproof type.
After installation, each lighting panel shall be tested with mains disconnected from the feeder,
the branch connected, and wall switches closed and the fixtures permanently connected but
without lamps. Each individual power circuit shall be tested at the panel with the power
equipment connected for proper operation. All circuits in the panel shall be clearly identified.
Attachment No. 1
FIXTURES AND WIRING DEVICES: When an item is installed, a new fixture, switch or
receptacle shall be installed complete with all wiring accessories.
When an item is to be replaced, the existing device shall be removed and a new fixture, switch
or receptacle shall be installed and connected to existing wiring.
When an item is to be relocated, it shall be removed completely, (or when the existing outlet box
and wiring cannot be removed, a blank cover plate shall be installed) and a new fixture, switch
or receptacle shall be installed complete in the specified location.
An item to be removed shall be removed completely, or when existing wiring or box cannot be
removes a blank cover plate shall be installed.
CONVENIENCE RECEPTACLES: Outlets to be relocated, installed new or replaced shall be
complete with new cover plates. When all switches and receptacles in a room are new they
shall be off white or ivory. New convenience receptacles shall be flush duplex grounded type,
and shall be grounded. Surface mounted boxes and "Wire Mold" are acceptable only if areas
for the new circuit are not accessible in any other manner without doing severe damage to walls
or ceilings. Replacement receptacles for the kitchen (except refrigerator) and bathroom shall be
GFCI protected duplex outlets; all others shall be flush duplex type. New receptacles shall not
be located in a baseboard or floor.
SWITCHES: When relocating or installing new switches they shall be installed complete with
new cover plate. New switches shall be toggle type switches and either single pole, 3-way or 4-
way as specified.
LIGHTING FIXTURES: Each lighting fixture shall be furnished with a lamp bulb or bulbs of
appropriate type and wattage. New lighting fixtures shall bear either a UL or ETL label. Unless
otherwise specified lighting fixtures shall be as follows: New exterior fixtures shall be wet
location type; style shall be owner' choice. New keyless and pull chain fixtures shall be
porcelain. All pull chain fixtures shall have a single convenience outlet. Ceiling or wall mount
fixtures for the living room, dining room, bathroom, hall, kitchen and bathroom shall be owner's
choice, unless otherwise specified. Fixtures in basement, second floor and attic stairways shall
be located directly over the stairway section at the head or foot of the stairs. Any fixture
specifically called for on the Invitation to Bid shall not be included in the retail allowance per
fixture, but shall be provided by the contractor as part of the contract.
ELECTRIC BASEBOARD UNITS: Existing sections of baseboard shall be cleaned and tested
for proper operation. New baseboard shall be able to maintain a temperature of 70 degrees F.
at a point three feet above the floor in all habitable rooms when the outside temperature is -10
degrees F., without overloading or scorching walls. New heaters shall be medium density type,
limited to 250 watts per foot of baseboard. Where possible, install on outside walls and under
windows. Each room or air circulation area shall have only one thermostat. Bathroom heaters
can be manual switch operation. Thermostats shall be baseboard mounted unless otherwise
specified.
Attachment No. 1
In bathrooms, baseboard heaters shall not be within reach of the bathtub. Wall or ceiling type
heaters are acceptable substitutes.
HEATING, VENTILATING, AIR CONDITIONING
GENERAL INSTRUCTIONS: (Note: Please review NCRRP Specifications and the California
Title 24 2008 Residential Compliance Manual for California Energy Efficiency Standards and
consult with NCRRP Staff concerning required Energy Efficiency Ratings (EER) for program -
installed heating systems and installation methods.)
All materials, equipment, piping, fittings, fixtures, etc., shall conform to the latest ANSI, ASTM,
ASME and FS standards. All equipment used shall be new and clearly marked to permit
identification of manufacturer, model and type.
The contractor shall furnish all instruments, gauges and equipment required for testing and shall
perform those tests required by the related authorities. Equipment, materials or work found to
be defective during testing shall be replaced by new work and be retested until proven
satisfactory.
Except as modified herein, the construction and installation of all equipment, accessories and
appurtenances shall comply with the published standards, requirements and recommendations
of the National Fire protection Association and National Board of Fire Underwriters.
All equipment and items installed under this section shall operate safely and without leakage,
undue wear, noise vibration or corrosion.
All drilling, patching and cutting necessary for the proper installation of work under this section
shall be done by the contractor. All patching shall be of the same materials, quality of
workmanship and finished as the original work and shall accurately match all surrounding work
(painting excluded).
Equipment and materials furnished by others which require connection to the heating system,
shall be connected by the contractor.
All piping, ductwork and equipment shall be installed without critical damage to structural
members.
The contractor shall provide sleeving as required and upon completion of rough in work, sleeves
shall be made sound and fire tight. Metal chimneys shall not be installed as exposed piping in
habitable areas, closets, or stairways. They shall be enclosed with fireproof material to provide
a minimum of 2 inch air space and meet local code requirements.
The contractor shall install chrome plated escutcheons where exposed piping passes through
floors, walls and ceilings.
All heating and ventilation equipment and fuel storage tanks not required to remain shall be
removed by the contractor.
Attachment No. 1
The entire new and existing installation shall be left neat, clean and in usable condition.
HEATING EQUIPMENT AND REPAIRS
FORCED AIR SYSTEMS: New installations shall be complete and shall include new furnace,
ductwork and registers. Provide hot air supplies and cold air returns throughout the house.
Duct insulation shall meet current CTED specifications.
HEATING UNITS: New heating units shall be installed complete with new disconnect switch,
electrical circuit, flue pipe and all controls, wiring, accessories, thermostat, and valves.
Thoroughly clean the, oil tank, fittings, and lines. Chimney cleaning shall be performed by a
licensed chimney sweep when applicable
Note that the electrical contractor will wire a separate circuit (if one does not already exist) from
the panel box to a junction box located near the heating unit. It is the heating contractor's
responsibility to coordinate installation of the circuit unless otherwise specified.
New units shall have ratings sufficient to ensure proper heating of all habitable rooms within the
living unit they intend to serve. Such determinations shall be made in accordance with the best
practices of the National Warm Air Heating and Air Conditioning Association, the "Guide" of the
American Society of Heating. This shall include heat loss calculations if required by local
authorities. Furnace shall be able to maintain a room temperature of 70 degrees at a point
three feet above the floor in all habitable rooms, when outside temperature is 0 degrees F.
Heating system shall be designed, installed, balanced and adjusted to provide for the
distribution of heat to all habitable rooms and other spaces in accordance with the calculated
heat loss of the spaces to be heated. No heating unit shall be more than 15% oversized for its
particular installation. New units must have an efficiency rating of 81 % or greater.
All work performed in the installation of heating equipment shall be in accordance with the
manufacturer's recommendations. Mechanical equipment shall be so installed and located that
inspection, routine maintenance and/or repair is possible without removing item of permanent
construction. Listed furnaces shall be installed in accordance with their listings. Unlisted warm
air furnaces shall be installed with a minimum clearance of 6 inches between the top bonnet
plenum (or between the top of an extended plenum or duct within 3 feet of such furnace) and
combustible material. All approved gas or oil burners shall bear the manufacturer's
identification marks, the burner trade name and the model number or size installed.
HEATING UNIT CONTROLS: When heating unit controls are to be replaced or repaired, the
contractor shall examine all controls for that particular unit, including the thermostat, and repair
and replace those controls found to be defective. Operating and limit or safety devices shall be
AGA approved or UL listed. If specified install a programmable thermostat.
CLEANING AND ADJUSTING HEATING SYSTEMS: After servicing, the mechanical contractor
shall leave a certificate on the furnace indicating his/her name, the work or repairs completed,
and the date.
Attachment No. 1
When heating units are cleaned and adjusted, the contractor shall thoroughly clean and adjust
the system for proper operation. When necessary or specified replace thermostat. On forced
air systems, this shall include cleaning the blower motor and fan assembly, installing new air
filters and replacing blower motor drive belts and testing of combustion regulators. On oil fired
systems, this shall include cleaning the oil tank (removing condensation and sediment), fittings
and lines and replacing fuel filters and testing of combustion regulators. On all fossil fuel
heating appliances, the heat exchangers, vent connectors and vents shall be inspected for
damage or deterioration. Vent connectors and vents shall be cleaned. Ductwork shall be
cleaned only when specified on the Invitation to Bid. When specified, clean and vacuum at all
accessible openings. Special attention shall be paid to duct runs with floor registers.
DUCTWORK AND REGISTERS: Sheet metal shall be not lighter than 28 gauge galvanized
sheet metal. The sheet metal work shall be accurately formed, be fitted snugly, have exposed
edges folded at least 1/2 inch and leave no sharp corners exposed. Fiberglass duct which is UL
listed and meets NFPA standards is also acceptable. New flex duct is allowed if it has at least
R-8 rated insulation and meets UL, NFPA and ASTM standards. All ductwork shall be properly
supported with hangers or floor rest channels. Special care shall be taken in supporting flex
duct to avoid any sagging or kinks. No new duct work shall be installed in finished rooms,
including closets.
Balance dampers shall be installed and/or ductwork shall be sized to control the flow of air to all
supply registers. Dampers shall be labeled, indicating the rooms served and the system shall
be balanced.
New supply outlets may be installed in floors and walls. When installed in the floor, outlets shall
be no closer than 6 inches to any wall. Supply outlets installed in outside walls shall be located
in front of windows. Basements need not have a separate supply outlet unless specified. All
supply registers shall be equipped with shut off dampers. Return air inlets shall be located in
walls or floors, as is appropriate to their size and function.
Supply and return ducts in unheated space shall be insulated to a minimum R-19. Insulation
level and installation shall comply with current State of California or utility company
specifications. These specifications shall be included in the Invitation to Bid. Where ducts are
used for cooling, insulation shall be covered with a sealed joint vapor barrier. All forced air
heating ducts shall be sealed according to CA Title 24 current duct sealing procedures using
acceptable materials.
PAINTING
GENERAL INSTRUCTIONS:
The quality of paints and related materials shall equal or exceed those first grade and related
materials manufactured by:
Olympic Stain Glidden Dunn Edwards "or equal"
Benjamin Moore
Frazee's Sherwin Edwards
Attachment No. 1
All paints, primers, solvents, glues, mastics, etc. must qualify as low-VOC unless unavailable in
the market place for the specific work specified.
Paint shall be understood to include not only paints but also primers, enamels, sealers, stains
and other coatings, plus all paint accessory materials.
The addition of thinners, quick drying additives, or other adulterants of any kind shall not be
permitted, except as specifically recommended by the manufacturer.
The use of splatter -dash technique for appearance purposes on interior surfaces shall be limited
to "orange peel "or other fine -medium texture only. Texture shall not be applied to any trim,
woodwork or metalwork. Any atypical paint applications and color schemes shall be paid for by
the owner.
Certain finish coats are formulated to serve as primers and may be so used when applied in
accordance with manufacturer's recommendations.
Paint shall not be applied until surfaces are thoroughly dry, excepting certain masonry paints
formulated for application to wet surfaces. Contractor shall assume responsibility for such
conditions and shall make good any work executed prematurely.
Any work which is damaged by the contractor or his/her employees, or for any reason is
unacceptable, shall be repaired or redone to match surrounding areas. All touch up painting
shall match surrounding areas. No exterior painting shall be done unless the temperature is
between 50 degrees F. and 100 degrees F. and is expected to remain above freezing (32
degrees F.) for at least 24 hours.
Items or surfaces for which colors or finishes are not selected shall be painted or finished to
match the adjacent background or adjacent finish colors or stains. Such items shall include, but
not limited to, roof vents (color of roof), covers, housings, brackets, piping, duct work, drain
pipes, conduit, access panels, unfinished or prime coated hardware, grills, registers, louvers,
cabinets, electrical panels and similar items. New and previously unpainted hardware
accessories and electrical equipment are not to be painted. Switches and their cover plates
shall not be painted. Painter shall remove these items as necessary, reinstalling them when
his/her work is completed. Square foot coverage per gallon shall be as recommended by the
manufacturer.
Paint shall have easy brushing properties. Paint shall be kept well stirred during painting and be
screened free from skim, lumps and foreign matter. No paint, nor the residue thereof, shall be
used after it is caked or hardened. Paint shall be worked into all corners, voids and joints. All
surfaces other than those of metal items shall receive two coats of paint and all coats shall be
thoroughly dry prior to application of next. Initial primer coat may be counted as one coat of the
two required coats of paint, provided adequate hiding has been obtained. Tinted primer coats
are acceptable.
Additional coats may be required if the finish does not provide acceptable coverage or hiding.
Finished work shall be uniform, free of runs and sags, smooth, free from brush marks and of
Attachment No. 1
uniform color. Where paint adjoins other materials or where different colors meet, the edges of
the paint shall be sharp and clean. Upon completion, the entire area shall be cleaned and left in
a neat condition, including removal of all overspray.
All paint shall carry a minimum manufacturer's durability warranty of 10 years, and the
contractor will fully guarantee the job for one year. At least 1/2 gallon of each color used shall
be left with the owner, with label attached. Colors of all paint are the owners' choice, subject to
the Secretary of the Interior's guidelines in the case of historic buildings.
EXTERIOR PAINTING
GENERAL INSTRUCTIONS: All surfaces to be painted shall have all loose, blistered, scaling,
alligatored and crazed coatings removed and shall be thoroughly cleansed to receive new paint.
Paint may be applied by any of the following: brush, roller, air compressor, or airless sprayer,
unless otherwise specified in the Invitation to Bid. When exterior paint is applied to correct a
lead base paint problem, it shall be the contractor's responsibility to insure that the old paint that
has been removed from the exterior of the house is removed from the premises according to
state and local laws and guidelines.
PREPARATION: Secure loose material and reset nails as needed. Caulk at all joints where
caulking has deteriorated and/or is missing. Remove all miscellaneous nails, hooks, screws,
tacks, etc. Remaining holes, those no larger than a dime, shall be properly filled depending on
the surrounding surface material. All patches shall be sanded smooth. All windows, doors and
other openings shall be re -caulked. All dried out or otherwise deteriorated glazing compound
shall be replaced. If any area to be painted shows signs of mildew, those areas shall be
cleaned, sanded and sealed before painting. Exterior preparation work must be inspected by
NCRRP Staff prior to application of primer. After notification by the contractor, preparation work
will be inspected in a timely manner.
WOOD TRIM, MILLWORK AND SIDING: Sandpaper new millwork prior to application of primer
or stain. Reset all loose nails and putty all nail holes and minor cracks in wood with putty after
spot priming these areas with exterior oil base primer. Scuff sand all trim to remove gloss and
provide tooth for adhesion of new paint. Prime coat all knots and resinous wood with a
prepared knot sealer or aluminum paint (which is not considered a primer coat). Apply one coat
of exterior oil base primer to all new and bare wood surfaces. Then apply two coats of exterior,
non -chalking, oil base or latex paint to all wood surfaces. Doors and sash and their trim shall be
gloss finish.
Wherever encountered, do not paint natural finish ceiling surfaces unless specified in the
Invitation to Bid. First prepare these surfaces to be refinished. Then apply at least two coats of
spar varnish or polyurethane varnish formulated for exterior use.
Likewise, do not paint natural finish wood shingles, shakes, or rough sawn siding unless
painting of this siding is specified. Instead, apply two coats of oil or pigmented oil stain. When
necessary, stain new sections of siding to match existing.
Attachment No. 1
WOOD DOORS: Wood doors are to be natural finished unless otherwise specified. Prepare
door for new finish. All door edges are to be eased. Edges, including the top and bottom, shall
receive the same finish as the faces. Natural finish for new doors shall be one coat of stain
(owner's choice of color) and at least two coats of clear sealer formulated for exterior use. Paint
for new doors and existing doors shall be one coat of exterior oil base primer and one coat of
exterior oil base paint.
WOOD STEPS AND DECKS: Caulk all joints between wood surfaces and walls. Reset all
loose nails. Apply at least two coats of oil base exterior floor or deck enamel in accordance with
manufacturer's recommendations.
CONCRETE AND MASONRY SURFACES: Whether specifically scheduled or not, if exterior
foundation walls are badly stained or splattered with paint during painting, they shall be painted
to be in harmony with the siding.
Apply at least two coats of resin -emulsion paint, solvent rubber paint or floor and deck enamel
to horizontal surfaces. If oil base paint is used, neutralize surface before painting. Walls shall
receive at least two coats of polyvinyl acetate emulsion paint. Surfaces which have been
waterproofed shall be treated as per manufacturer's instructions prior to painting.
GUTTERS AND DOWNSPOUTS: Gutters and downspouts shall match trim color on house if
being repainted.
INTERIOR PAINT
GENERAL INSTRUCTIONS: All surfaces to be painted shall have all loose, blistered, scaling,
and alligator coating removed and shall be thoroughly cleansed to receive new paint.
When painting wallpapered surfaces the wall paper must be tight and edges or joints feathered
where necessary. Secure loose material and reset nails. Remove all miscellaneous nails,
hooks, screws, and tacks from walls and wood work. Patch all holes with spackle or oil base
putty depending on the surface material. All patches shall be smoothly done and all rough
edges sanded smooth. Seal all un-removable grease spots or stains with sealers and/or
primers designed for that purpose. Kill stain or seal all varnished wood surfaces before painting
so that desired coverage is obtained. If any area to be painted shows signs of mildew, those
areas shall be cleaned, sanded and sealed before painting is done.
Painting by room shall include walls, ceiling, doors, windows (including those surfaces exposed
by opening), trim, cabinet work, miscellaneous shelving, shall be painted and/or refinished as
specified. A closet is considered a part of the room in which it is located, as well as closet rods
and shelves and bracing and drawers. Natural finished items are not to be painted unless
specified. Interior of cabinets will not be included unless specified.
DRYWALL OR PLASTER WALLS AND CEILINGS: Hairline cracks and scraper dents shall be
spackled and sanded. Open cracks shall be raked out and damaged plaster shall be removed.
Apply new plaster in coats thin enough to prevent shrinkage. All repair work, when completed,
shall match existing surfaces, present a neat appearance and be free of hairline cracks and
Attachment No. 1
bulges. All surfaces shall be washed or sanded prior to painting. Previously painted surfaces
shall receive at least two coats of interior latex or oil base paint. New plaster or drywall shall
receive a first coat of interior primer and at least two additional coats of paint. Paint for kitchens,
bathrooms and utility rooms shall be semi -gloss enamel. Surfaces shall be painted with a roller
and/or brush except that certain types of texture finish ceilings cannot be satisfactorily painted
with roller or brush. These surfaces only may be spray painted.
WOOD WINDOWS AND DOORS: All door edges shall be eased. If new wood is open grain
type, fill or seal surface to prevent grain rising. Apply one coat of suitable oil base primer to all
new and bare wood surfaces. Then apply at least two coats of interior semi -gloss enamel (oil
base or latex) to all surfaces. Edges - top sides and bottom shall be painted the same as the
door faces. Color shall match adjacent wall surfaces. Painting shall be done with brush only.
For natural finish, all door edges shall be eased. Apply one coat of penetrating sealer to all
trimmed door edges. All interior doors, if not pre -finished, shall receive at least two coats of
spar varnish or polyurethane varnish. Edges - top, bottom and sides shall be finished the same
as door faces. Varnish shall be applied with brush only.
WOOD TRIM, MILLWORK, PANELING, CABINET WORK AND SHELVING: It is not intended
that cabinet work and other wood surfaces scheduled for refinishing or painting be completely
stripped down to bare wood. Rather, it is intended that scratches and other surface blemishes
be treated so as to make them unnoticeable. Gloss shall be removed from all enamel surfaces
to be painted. Stain or prime and finish as necessary. If interior of cabinets are to be refinished,
it will be scheduled separately.
For painting, sandpaper new millwork prior to application of primer. Reset loose nails. All nail
holes shall be filled and sanded prior to painting. If new wood is open grain type, fill or seal
surfaces to prevent grain rising. Apply one coat of a suitable primer to all new and bare wood
surfaces. Then apply at least two coats of interior semi -gloss enamel (oil base) to all surfaces.
Color shall match adjacent wall surfaces, unless scheduled otherwise. Painting shall be with
brush only.
For natural finish, sandpaper new millwork prior to application of finish. All wood to be
refinished shall be first prepared as necessary to receive new finishes. Loose nails shall be
reset and all holes shall be filled with linseed oil putty. If new wood is open grain type, surfaces
shall be filled or sealed to prevent grain rising. New or bare wood shall be stained to match
existing as closely as possible. All natural finish wood shall receive at least two coats of
varnish, shellac, lacquer or polyurethane coating as appropriate to its intended use. Application
shall be with brush only.
LEAD BASED PAINT ABATEMENT
If a painting instruction is noted in the Invitation to Bid as a "Lead based abatement project "the
following procedures must be followed.
EXTERIOR: All loose, blistered, scaling, and alligator paint coatings shall be removed by hand
scraping with appropriate containment based on the EPA Lead Renovation, Repair and Painting
Attachment No. 1
Program effective April 22, 2010. Machine sanding and the use of propane torches are not
allowed. All paint film that has been removed from the house must be captured on drop cloths,
removed from the premises, and disposed of in accordance with local and state regulations.
INTERIOR: Interior lead based paint can be abated either by removal and repainting or by
covering with fiberglass cloth, sheetrock, or non -strippable wallpaper. In areas of paint removal,
disposal shall be the same as exterior described above.
NOTICE: Contractors participating in the NCRRP are ultimately responsible for full compliance
with Federal, State and Local regulations regarding lead based paint abatement, disposal and
worker protection.
Attachment No. 1
Exhibit I: First -Time Homebuyer Assistance Program Manual
. .
�* CALIFORNIA —+
NAOaLCITV
CORPORATE
SAN DIEGO HABITAT FOR HUMANITY
FIRST-TIME HOMEBUYER
ASSISTANCE PROGRAM MANUAL
City of National City
Housing and Grants
1243 National City Blvd.
National City, CA 91910
(619) 336-4391
(619) 336-4286 Fax
EFFECTIVE: October 17, 2012
(Subject to change)
EQUAL HOUSING
OPPORTUNITY
Attachment No. 1
Exhibit I: First -Time Homebuyer Assistance Program Manual
TABLE OF CONTENTS
Effective October 17, 2012
PURPOSE OF THE PROGRAM MANUAL
GENERAL DEFINITIONS
SECTION I -BORROWER ELIGIBILITY REQUIRMENTS
A. ELIGIBLE BORROWER
B. INCOME CRITERIA
C. HOUSEHOLD ELIGIBILITY REQUIREMENTS
D. ELIGIBLE PROPERTIES
E. MAXIMUM PURCHASE PRICE
F. LOAN PROCEDURES AND TERMS
APPENDIX A- INCOME
APPENDIX B- SHARED EQUITY EXAMPLE
APPENDIX C- HOME REGULATORY AGREEMENT
APPENDIX D- DEED OF TRUST
APPENDIX E- PROMISSORY NOTE
2
Attachment No. 1
Exhibit I: First -Time Homebuyer Assistance Program Manual
PURPOSE OF THE PROGRAM MANUAL
The purpose of this Program Manual is to describe the program and delineate the role of the
City, San Diego Habitat for Humanity Community Housing Corporation ("SD-HFH"), the
applicant/borrower and the lenders. This document contains a description of the City of
National City First -Time Homebuyer Program requirements. Loan documents are attached in
the Appendix.
GENERAL DEFINITIONS
AFFIDAVIT: A deposition filed in connection with the program made under oath and subject to
penalties of perjury.
APPLICANT: Any person who applies for City loan assistance.
ASSETS: Cash or a non -cash item that can be converted to cash. Assets exclude necessary
personal property.
CITY: The City of National City.
COMMITMENT: A document, which is originated and issued by the SD-HFH, based on review
and approval of the application package and lender's certification that the requirements
necessary for issuance of a City loan have been met.
San Diego Habitat for Humanity Community Housing Corporation, Inc. ("SD-HFH"):
City selected HOME CHDO subrecipient that will process, underwrite, close, and package, and
service the loan.
ELIGIBLE BORROWER: Any person meeting the criteria as set forth in this manual.
ELIGIBLE DWELLING: Real property located within the City of National City. This may include
a residential unit to be built, a new unit, or an existing. The unit must be designed as a
residence for one household and must meet property standards and criteria as set forth in this
manual.
EQUITY: The dollar amount that constitutes the difference between the sales price of the
Property and the sum of the following amounts; 1) principal on the First Note and Deed of
Trust; 2) principal on the Second Note and Deed of Trust to the City of National City; 3) all
costs of sale, including costs of brokers' commissions, escrow fees, title costs and fees,
recording costs, etc.; 4) current year taxes, including all real estate taxes calculated to the date
of sale; 5) borrower's down payment not including the loan from the City to Borrower; 6) costs
of any capital improvements to the Property, provided such improvements were approved by
the City prior to construction and provided that such improvements have been documented to
the satisfaction of the City.
EQUITY SHARE: The equity share starts at 50%/50% between the Borrower and the City.
The amount of the Borrower's share in the Equity of the Property shall increase by five percent
(5%) per year, measured on the anniversary date of the Deed of Trust. Correspondingly, the
City's share in the equity of the Property shall decrease by five percent (5%) per year. In the
event that no Equity exists at the time of transfer or sale, the City loan (HOME funds) will still
be due and payable. In the event that a negative Equity situation exists, and the full amount of
the City loan is not available to be recaptured, the amount of the loan required to be repaid to
3
Attachment No. 1
Exhibit I: First -Time Homebuyer Assistance Program Manual
the City will be set forth in the HOME agreement between the Borrower and the City. A Shared
Equity example is attached as Appendix B.
EXISTING HOME (RESALE HOME): A dwelling unit that has been previously occupied.
HOME FUNDS/HOME INVESTMENT: Funds received pursuant to the HOME Investment
Partnership program under the Department of Housing and Urban Development (HUD), codified
at 42.U.S.C. Section 12701, et seq., 24 CFR Part 92, to provide funds for affordable housing
HOMEOWNER INVESTMENT: Homeowner's down payment and any capital improvement
investment made by the owner since purchase
INCOME: The gross amount of all taxable income for all mortgagors and adult household
members that is anticipated to be received during the coming twelve (12) months. All income
derived from any source, including income from wages (gross pay,) overtime, pensions,
veteran's compensation, bonuses, public assistance, alimony, net rental income, dividends and
interest, etc. must be included. Non-taxable income must be listed, but bracketed, in order to
exclude this income from the annual family income calculation; verification of non-taxable
status may be required.
ISSUER: The City of National City.
LENDER: A financial institution, whether broker, retail, or wholesale, licensed to provide
mortgage loans in the State of California. The institution must meet all the requirements
established by the City in order to participate as a lender in the City program
LOAN: An extension of credit provided to an Eligible Borrower to finance the purchase of an
Eligible Dwelling
LOW-INCOME: A household with income at or below 80% of the Area Median Income as
established by the U.S. Department of Housing and Urban Development. Every 12-18 months,
the U.S. Department of Housing and Urban Development updates these figures
NEW HOME: A dwelling unit that is proposed to be constructed, is currently under
construction, or exists but has not been previously occupied.
NET PROCEEDS: Sales price minus loan repayment and closing costs.
OWNERSHIP: Any of the following interests in residential property: fee simple interest; joint
tenancy; tenancy in common; interest of a tenant -shareholder in a cooperative; life estate;
interest held in trust for the Applicant that would constitute a present ownership interest if held
by the Applicant.
PRINCIPAL RESIDENCE: Residence must be occupied as the primary home of the buyer and
be defined as one of the following types of residences: 1) single-family house; 2) condominium
unit; 3) town home unit
PROHIBITED MORTGAGE: Subordinate mortgages and any liens superior to the City First -
Time Homebuyer loan, other than the new first Trust Deed.
PROPERTY VALUE: Value of the eligible property as determined by a certified appraisal
4
Attachment No. 1
Exhibit I: First -Time Homebuyer Assistance Program Manual
PURCHASE PRICE: Cost of acquiring the residence, excluding usual and reasonable settlement
or finance costs, and the value of services performed by mortgagor in completing the
acquisition.
RELATED PERSON: Any party(ies) who may have a beneficial interest in the sale or financing
of the subject property, other than a qualified lender
SINGLE-FAMILY RESIDENCE: Housing unit intended and used for occupancy by one
household
5
Attachment No. 1
Exhibit I: First -Time Homebuyer Assistance Program Manual
BORROWER ELIGIBILITY REQUIREMENTS
Both federal and state law sets borrower eligibility requirements. Income guidelines are
modified based on federal directives every twelve to eighteen months. The City will notify the
Lenders when those changes take place, including the effective date of each change.
A. ELIGIBLE BORROWERS
1. Qualified applicants must be first-time homebuyers. The Applicant may not have held an
ownership interest in his/her Principal Residence within the past thee years. This timeframe
includes those 36 months before the date the mortgage is executed. In the case of a
married couple, both parties must meet this requirement. The buyer, spouse and any other
parties who will be listed on title must meet this requirement. The Lender must verify this
through his/her examination of the Applicant's federal tax returns for the preceding three
years. The Applicant(s) cannot have claimed a deduction for mortgage interest or taxes on
real property claimed as a Principal Residence.
2. To demonstrate compliance with this requirement, Applicants must complete and sign the
First-time Homebuyer Application and Affidavit and provide copies of their last three (3)
years signed federal tax returns (or acceptable alternative exhibits).
a) The Applicant(s) can provide the signed 1040A 1040EZ or 1040 federal income tax forms for
the preceding years, including all schedules. These forms shall be submitted to the Lender
and forwarded to the City with the completed loan application. The tax returns must be
signed and dated in blue ink by the Applicants.
b) If the Applicant(s) has/have filed the short form, 1040A or 1040EZ for the last three (3)
years, completes and signs the required affidavits, but is unable to produce copies of the
signed returns, the City will accept a completed copy of IRS Letter Form 1722 in lieu of
actual returns. The Applicant may request this letter, free of charge, from the local IRS
Office. The Letter 1722 must include the signature of a representative of the IRS. Letter
Form 1722 should include the following information:
Name and social security number
ii. Type of return filed
Marital status
iv. Tax shown on return
v. Adjusted gross income
vi. Taxable income
vii. Self-employment tax
viii. Number of exemptions
c) In the event the Applicant(s) was not obligated to file federal income tax returns for any of
the preceding three (3) years, it will be necessary for the Lender to obtain a completed and
signed Income Tax Affidavit from the Applicant, which is required in place of the above.
This document is to be forwarded to the City with the application package.
d) If either copies of the required tax returns or the 1722 Form cannot be obtained, the Lender
may be able to help the Applicant establish first-time homebuyer status with copies of utility
bills and a signed and notarized statement from the Applicants landlords for the previous
three years.
e) When the Commitment is issued during the period between January 1 and February 15 and
the Applicant has not yet filed his/her/their Federal Income Tax Return for the preceding
year, the City may rely on an affidavit. The affidavit must affirm that the Applicant is not
entitled to claim deductions for taxes or interest on a principal residence for the preceding
year. After February 15, a tax return will be required.
3. Upon close of escrow, the buyer must occupy the home as their Principal Residence.
6
Attachment No. 1
Exhibit I: First -Time Homebuyer Assistance Program Manual
4. Applicant(s) need not be a U.S. citizen. Legal resident aliens are eligible to apply but must
show proof of status.
5. City of National City employees are eligible to participate.
B. INCOME CRITERIA
1. Income must be at or below 80% of the currently published San Diego County median
income, adjusted for household size. Income limits have been established by the U.S.
Department of Housing and Urban Development and are adjusted annually. In accordance
with this requirement, applicants may not obtain "stated income" loans. The true income
must be a qualifying factor in loan approval.
Household Size
Annual Income
1 person
$ 45,000
2 people
$ 51,400
3 people
$ 57,850
4 people
$ 64,250
5 people
$ 69,400
6 people
$ 74,550
7 people
$ 79,700
8 people
$ 84,850
Effective December 2011
2. Gross income is calculated by taking the Applicant's anticipated adjusted gross monthly
income, at the time of application, and multiplying it by twelve. Adjusted gross income
includes the gross amount of all taxable income, before payroll deductions of: wages,
salaries, commissions, fees, tips and bonuses, alimony, public assistance, etc. The adjusted
gross income also includes the income earned on assets, such as dividends earned on stock
and interest earned on savings and checking. The adjusted gross income qualification is
pursuant to the 24 CFR 92.203(b)(3) for reporting under the IRS Form 1040 series for
individual federal annual income tax purposes. Gross income includes the combined taxable
adjusted gross income of all mortgagors and all other adult members of the household.
a. Self -Employed or Seasonal Employees: The formula that the Lender uses to determine
the anticipated gross monthly income of self-employed and/or seasonal workers is
acceptable provided that all income as described in this manual is included in the
calculation.
b. Co-Borrower/Co-Mortgagor: If a co -borrower or co -mortgagor will be on both the
title and the deed of trust, his/her income must be included in determining eligibility
for the program. The IRS regulation states "income to be taken into account in
determining gross income is income of the mortgagor(s) and any other person who is
expected to both live in the residence being financed and to be secondarily liable on
the mortgage."
c. Spouses: Married couples are treated as co -applicants, whether: 1) they are
separated; 2) either spouse is applying for the loan; or 3) either spouse plans to be
named on title.
d. Computing Income
i. Program Computation vs. Mortgage Underwriter's Computation: The City loan
figure represents ANTICIPATED income, while the Lender's figure represents
income AVERAGED over the last few years and the City program requires that
every source of taxable and non-taxable income be listed on the Income
Computation Worksheet, however, non-taxable income should be bracketed and
not added into the maximum annual family income calculation.
7
Attachment No. 1
Exhibit I: First -Time Homebuyer Assistance Program Manual
ii. Income Parameters: See Appendix A of this manual for examples of sources of
income, which must be considered in computing buyer income.
iii. Military Pay: See Appendix A of this manual for Military Pay explanations.
iv. Self -Employed: Year-to-date profit and loss statement and three prior year's tax
returns are required.
v. Other Income: Sources of income other than wages must be documented by third
party verifications. In cases where the third party fails to respond, acceptable
alternative sources of documentation can be determined on a case -by -case basis
and should follow standard FNMA income verification guidelines.
vi. Documentation: In cases where the Applicant is employed, acceptable sources of
documentation used to verify income include a recent pay stub with year-to-date
earnings and an employer Verification of Earnings statement (VOE). If the
application is taking place during the first four months of the year, a year-to-date
total may be insufficient. The Lender must supplement the pay stub information
with the prior year W-2 statement and/or tax returns. On some pay stubs, the
year-to-date earnings include pay from the last part of the prior year. If this is
determined to be the case, request that the employer submit a signed statement of
verification of exact year-to-date income. Miscalculation can result in the
determination of excess income and disqualification of the buyer.
vii. Income Verification: The Lender bears the burden of proving that the Buyer's
income is within the program guidelines. The computation should be clear,
complete, and documented by third party verifications, to the greatest extent
possible.
viii. No Income: Adult members, 18 years and older, of the household who have no
income must complete and sign the Declaration of No Income form.
C. HOUSEHOLD ELIGIBILITY REQUIREMENTS
1. Households shall have sufficient income and credit -worthiness to qualify for primary
financing from a participating lender.
2. Maximum liquid assets after down payment and closing cost contribution may not exceed
$25,000.
D. ELIGIBLE PROPERTIES
Properties acquired and rehabilitated by SD-HFH that have met local code inspection standards
and complied with lead -based paint regulations as prescribed by the City. The program may
also be used on new construction projects SD-HFH.
E. MAXIMUM PURCHASE PRICE
The maximum purchase price cannot exceed 95 percent (95%) of the median purchase price
for the area, as determined by the U.S. Department of Housing and Urban Development (1
unit-$394,250, effective 12/2011).
F. LOAN PROCEDURES AND TERMS
1. The loan amount shall be the difference between the sales price, less any down payment,
and the amount of the first mortgage for which the Eligible Household has been provided a
bona fide lender approval.
2. The maximum CLTV (combined loan to value) of the City and the new 1st Trust Deed loans
shall not exceed the maximum approved CLTV required by the 1st mortgage lender.
3. Non -occupant co -borrowers shall not be allowed.
8
Attachment No. 1
Exhibit I: First -Time Homebuyer Assistance Program Manual
4. Total housing ratio (PITI) cannot exceed 36% of Applicant(s) gross monthly income. The
City may make exceptions if less than twenty percent payment shock is involved.
5. Total debt -to -income ratio may not exceed 45% or 41% if obtaining an FHA loan.
6. No prepayment penalty allowed.
7. Maximum fees to the Applicant of 1.25% origination, discount points for below par pricing
only, and $350 processing are acceptable for the purchase transaction. No other Broker or
Admin type fees allowed. Other third party fees that are reasonable and customary are
allowable.
8. The terms of the City's second trust deed are designed to encourage long-term residency in
the program -assisted home. No interest is charged on the loan (except in the case of
default). Instead, the program is based on an equity share. The amount of equity due to
the City is based upon the number of years after the date of execution of the City's loan. It
begins at 50% of the equity and decreases by 5% each year. After 10 full years of owner
occupancy, there is no equity share. Only the principal remains due and payable. See
shared equity example in Appendix B.
9. The loan shall become due and payable at the time of the property's transfer of title,
refinance (except as earlier defined), rental or sale.
10. The loan shall also become due and payable when the acceleration clause is triggered. The
acceleration clause will be in effect when the property is no longer the principal place of
residency of the eligible homebuyer, or upon discovery of willful misrepresentation or fraud
in connection with the program. Rental of the property is prohibited and will cause the loan
to be accelerated.
11. Second and subsequent mortgages to the new First Trust Deed, except for this City Loan,
are not permitted.
12. The loan is not assumable.
13.A Promissory Note and Deed of Trust will secure the loan.
14. The City Loan can be used with conventional, FHA, VA, and other loans issued be a qualified
lender, except adjustable rate mortgages with less than five years fixed, negative
amortization and stated income mortgages.
15. Lenders will process the underlying mortgages (first loan) using standard procedures, with
adjustments to those procedures to conform to the City loan guidelines.
9
Attachment No. 1
Exhibit I: First -Time Homebuyer Assistance Program Manual
APPENDIX A
INCOME
GROSS ANNUAL INCOME
Gross annual income is defined as the anticipated annualized gross taxable income of a
mortgagor (or mortgagors) and adult members of the household. Annualized income is the
sum of monthly gross taxable income multiplied by twelve (12). Gross monthly income
includes all taxable sources of income derived from: gross pay, overtime compensation, part-
time employment earning, bonuses, dividends, interest, royalties, pensions, Veterans
Administration (VA) compensation, net rental income, alimony, public assistance payments,
sick pay, social security benefits, unemployment compensation, income received from trusts,
income received from business activities or investments, and any other source of taxable
income not listed above.
Information regarding income must be current within the most recent 30-day period preceding
loan closing. Income not included by the Lender, but listed above, must be added to the
Lender's income total on the "Income Computation Worksheet" income eligibility calculation for
the City loan program. Income of the mortgagor (or mortgagors) and any other adult who is
expected to live in the residence being financed must also be included in the household income
calculation. All non-taxable income must be listed and bracketed on the "Income Computation
Worksheet", but not counted when calculating the annual gross family income.
In summary, income of all mortgagors (on both title and deed of trust) shall be included in the
gross income calculation for the program. Additionally, the income of any adult who will live in
the residence should be included. For married couples, income includes the income of both
spouses, whether or not on title.
MILITARY PAY
For purposes of computing the buyer's gross monthly income, the monthly income is the "total
entitlement" shown on the applicant's most recent monthly Leave and Earnings Statement and
includes all regular pay, special pay and allowances. Non -taxed income, such as a housing
allowance is not counted as income, but must be listed and bracketed. Certain categories of
pay, which may be received only sporadically, may need to be considered on a case -by -case
basis.
10
Attachment No. 1
Exhibit I: First -Time Homebuyer Assistance Program Manual
APPENDIX B
SHARED EQUITY EXAMPLE
NOTE: The following example assumes an initial (a) Gross Sales Price of $150,000 (b), Net
Sales Price of $135,000 ($150,000 minus 10% seller fees), (c) 1st mortgage balance of
$100,000 and City 2nd of $25,000 (d), Total Equity of $10,000 (b-c), and a City loan of
$25,000.00 at a 0% interest rate, with an APR of 0%. The table is for the purpose of
illustration only. Actual sales price and net sales price will vary. The principal amount of the
loan remains due.
# Months
After Date
Of
Agreement
Gross
Sales
Price (a)
Net Sales
Price (b)
(a-10% fee)
Mortgage
Balances
( c)
(1st $100k &
2nd $25K)
Total
Equity
( d )
( b-c)
Buyer's Equity
Share
Increases 5%
Per year
City of Chula
Vista's Equity
Decreases
5% per year
0-12
$150,000
$135,000
$125,000
$10,000
$5,000 (50%)
$5,000 (50%)
13-24
$155,000
$139,500
$125,000
$14,500
$7,975 (55%)
$6,525 (45%)
25-36
$155,000
$139,500
$125,000
$14,500
$8,700 (60%)
$5,800 (40%)
37-48
$160,000
$140,000
$125,000
$15,000
$9,750 (65%)
$5,250 (35%)
49-60
$160,000
$140,000
$125,000
$15,000
$10,500 (70%)
$4,500 (30%)
61-72
$165,000
$148,500
$125,000
$23,500
$17,625 (75%)
$5,875 (25%)
73-84
$165,000
$148,500
$125,000
$23,500
$18,800 (80%)
$4,700 (20%)
85-96
$170,000
$153,000
$125,000
$28,000
$23,800 (85%)
$4,200 (25%)
97-108
$170,000
$153,000
$125,000
$28,000
$25,200 (90%)
$2,800 (10%)
109-120
$175,000
$157,500
$125,000
$32,500
$30,875 (95%)
$1,625 (5%)
Thereafter
$175,000
$157,500
$125,000
$32,500
$32,500 (100%)
$0 (0%)
In this example, the finance charge could vary between $1,625 and $6,525. Your amount will
differ, depending upon gross sales price, net sales price, the amount of equity, and the number
of months after the date of agreement that the sales occurs.
If the Property is sold in the first year of the term of the Note secured by this Deed of Trust,
Borrower shall receive fifty percent (50%) of the Equity in the Property and the City shall
receive fifty percent (50%) of the Equity. "Equity" is defined as the dollar amount that
constitutes the difference between the sales price of the Property and the sum of the following
amounts:
1. Principal on the First Note and the Deed Trust; and
2. Principal on this Second Note and Deed of Trust to the City of National City; and
3. All costs of sales, including cost of brokers' commissions, escrow fees, title costs and fees,
recording cost, etc.; and
4. Current year taxes, including all real estate taxes calculated to the date of sale; and
5. Borrower's down payment not including the loan from the City to Borrower; and
6. All principal paid down on the First Note and Deed of Trust; and
7. Costs of any improvements to the Property provided such improvements were approved by
the City prior to construction and provided that such improvements have been documented to
the satisfaction of the City.
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Attachment No. 1
Exhibit I: First -Time Homebuyer Assistance Program Manual
The amount of the Borrower's share in the equity of the Property shall increase by five percent
(5%) per year, measured on the anniversary date of this Deed of Trust. Correspondingly, the
City's share in the equity of the Property shall decrease by five percent (5%) per annum. For
the sake of example, if the Property is sold more than (5) but less than six (6) years after the
date of this Deed of Trust, the City would have a twenty-five percent (25%) share in the Equity
and the Borrower would have a seventy five percent (75%) share in the Equity of the Property.
In the event that no Equity exists at the time of transfer or sale, the balance of the Note will be
due and payable. In the event that a negative Equity situation exists, i.e., the proceeds from
the sale of the Property are less than the balance of the Note, all net proceeds from the transfer
or sale shall be paid to the City, as beneficiary in full satisfaction of the Note. When the HOME
recapture requirement is triggered by a sale (voluntary or involuntary) of the housing unit, and
there are no net proceeds or the net proceeds are insufficient to repay the home investment
due, the participating jurisdiction can only recapture the net proceeds, if any. The net proceeds
are the sales price minus superior Loan repayment (other than HOME funds) and any closing
costs.
12
Attachment No. 1
Exhibit I: First -Time Homebuyer Assistance Program Manual
APPENDIX C
HOME REGULATORY AGREEMENT
FREE RECORDING REQUESTED PURSUANT
TO GOVERNMENT CODE SECTION 27383
WHEN RECORDED PLEASE MAIL TO:
Office of the City Clerk
City of National City
1243 National City Boulevard
National City, CA 91950-4397
(SPACE ABOVE FOR RECORDER'S USE ONLY)
APN: XXX-XXX-XX FTHB #XXXX
HOMEOWNER'S REGULATORY AGREEMENT FOR HOME PROGRAM PARTICIPATION
THIS REGULATORY AGREEMENT ("Regulatory Agreement" or "Agreement") is entered into as
of this 18th day of January, 2011 between the City of National City ("City"), and a Qualifying
Household, on behalf of itself and Borrower's Name ("Owner").
PREFACE
WHEREAS, the City of National City receives a formula HOME Investment Partnerships ("HOME")
Program allocation from the Federal Department of Housing and Urban Development to carry out eligible
activities in accordance with program requirements; and
WHEREAS, the Owner is interested in participating in City 's HOME -funded First -Time Homebuyer
Program, and will comply with all program regulations and requirements; and
WHEREAS, concurrently with the recordation of this Regulatory Agreement the City is funding a loan
("Loan") secured by a deed of trust ("Deed of Trust") to aid Owner, who is a first-time homebuyer, in acquiring
the Property described below. The Trust Deed and Loan by the City was conditioned in part upon the
recordation of a document setting forth certain restrictions upon the use and sale of the Property; and
WHEREAS, Owner will use the proceeds of such Loan for the acquisition of the real property with
the street address of 1111 A Avenue, National City, California, 91950 more particularly described in
Exhibit A attached and incorporated by this reference ("Property"); and
WHEREAS, as further consideration for the Loan and to further the interests of the City, the Owner
has agreed to enter into and record this Agreement.
The covenants in this Agreement are intended to run with the land and be binding on the Owner for the full
term of this Agreement.
NOW, THEREFORE, THE PARTIES MUTUALLY AGREE AS FOLLOWS;
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Attachment No. 1
Exhibit I: First -Time Homebuyer Assistance Program Manual
The Owner shall receive HOME Investment Partnership funds for investment in real property owned by the
Owner, as evidenced by legal title or a valid contract of sale. Acting in this capacity, the Owner will comply
with all aspects of HOME regulations 24 CFR §92.504 including the following:
A. DEFINITIONS
The following terms have the meanings and content set forth in this Section A where used in this
Agreement or attached exhibits.
1. "AREA MEDIAN INCOME" means the median income for the San Diego County Primary
Metropolitan Statistical Area (PMSA), with adjustments for household size, as adjusted
from time to time by the U.S. Dept. of Housing and Urban Development (HUD).
2. "CITY" is of the City of National City, California, a public body corporate and politic.
3. "DEED OF TRUST" means any deed of trust, assignment of rents, and security agreement
placed on the Property or any part thereof as security for any Loan and other obligations
with Owner as trustor and City as beneficiary, as well as any amendments to, modification
of, and restatements of said deed (s) of trust.
4. "EFFECTIVE PERIOD" means the period commencing on the date of this agreement and
ending on the repayment of the Loan from the City, including the repayment of any required
Equity as defined in Section E of the Agreement.
5. "EIGHTY PERCENT OF AREA MEDIAN INCOME" means annual income, which does not
exceed eighty percent (80%) of the Area Median Income.
6. "HUD" means the United States Department of Housing and Urban Development.
7. "HOME FUNDS/HOME INVESTMENT": funds received pursuant to the HOME Investment
Partnership Program under the Department of Housing and Urban Development (HUD),
codified at 42 U.S.C. Section 12701, et seq., 24 CFR Part 92, to provide funds for affordable
housing.
8. "HOMEOWNER INVESTMENT": homeowner's down payment and any capital improvement
investment made by the owner since purchase.
9. "HOUSE" means the residential dwelling unit that is located on the Property.
10. "LOAN" is any Loan of funds provided by the City to any Owner for the purchase of the
Property.
11. "LOAN DOCUMENTS" are collectively the Deed of Trust, Note, Note Rider, this
Regulatory Agreement and any loan agreement, deed of trust, or promissory note entered
into between City and Owner with respect to any of the Property, as they may be amended,
modified or restated from time to time, along with all exhibits and attachments to these
documents.
12. "NOTE" means the promissory note and note rider executed by Owner in favor of City
evidencing any part of a Loan, which is secured by a Deed of Trust, as well as any
amendments to, modifications or, or restatements of said promissory note. The Note will be
on file with the City.
13. "OWNER" or "OWNERS" is the Qualifying Household that is the purchaser of the
Property.
14. "PROPERTY" means the real property located at:1111 A Avenue, National City,
California, 91950 and described in the attached Exhibit A, which is hereby incorporated
into this Agreement by this reference, and any buildings or improvements now or hereafter
situated on said real property.
15. "QUALIFYING HOUSEHOLD" means a household whose income is Eighty Percent of
Area Median Income, as determined periodically by HUD, with adjustments in accordance
with 24 CFR 92.252, and who is otherwise eligible to purchase the Property.
14
Attachment No. 1
Exhibit I: First -Time Homebuyer Assistance Program Manual
16. "QUALIFYING SALES PRICE" means a sales price that does not exceed 95 percent
(95%) of the median purchase price for the area, as determined by the U.S. Department of
Housing and Urban Development.
B. TERM OF AGREEMENT
The term of this Agreement shall remain in full force and effect during the Effective Period regardless of
any expiration of the term of any Loan, any payment or prepayment of any Loan, any assignment of a
Note, any reconveyance of a Deed of Trust, or any sale, assignment, transfer, or conveyance of the
Property, unless terminated earlier by the City in writing or extended by the mutual consent of the parties.
However, failure to record this Agreement by the City shall not relieve Owner of any of the obligations
specified herein. The covenants in this Agreement will run with the land for the benefit of the City and its
heirs, assigns and successors and be binding on Owner and Owner's heirs, assigns and successors for
the full term of this Agreement.
C. USE OF FUNDS
The Loan will be used to acquire the Property by the Owner who is a member of a Qualifying Household.
D. AFFORDABILITY
1. The House will qualify as affordable housing and will have:
(a) an initial purchase price that is a Qualifying Sales Price; and
(b) an estimated appraised value at acquisition that does not exceed Qualifying
Sales Price.
2. The House must be the principal residence of the Owner at all times during the
Effective Period.
3. The deferred Loan for the HOME -assisted House is $ 40,000.00.
E. RECAPTURE OF HOME FUNDS
Pursuant to 24 CFR 92.254(a) (ii), the City requires that HOME funds be recaptured if the housing does
not continue to be the principal residence of the family. If there is a "transfer," the principal amount of the
Note, together with a share of the "Equity" (if any), as hereafter defined, shall be immediately due and
payable to the City. A "transfer" means (i) all or any part of the Property or any interest in the Property
that is sold, conveyed or transferred; (ii) Owner is not a natural person and a beneficial interest in Owner
is sold, conveyed or transferred; (iii) all or any part of the Property is refinanced, except as otherwise
allowed by law; (iv) Owner does not occupy the Property as his, her, or their, primary residence; (v) the
leasing of all or any part of the Property; (vi) any material breach of the Note, Deed of Trust or this
Agreement; or (vii) the filing of bankruptcy by the Owner. The Equity in the Property shall be calculated
and shared between the Owner and City on the following basis:
# Months After Date
of Agreement
Buyer's Equity Share
(Increases 5% per year)
City Equity Share
(Decreases 5% per year)
0-12
(50%)
(50%)
13-24
(55%)
(45%)
25-36
(60%)
(40%)
37-48
(65%)
(35%)
49-60
(70%)
(30%)
61-72
(75%)
(25%)
73-84
(80%)
(20%)
85-96
(85%)
(15%)
97-108
(90%)
(10%)
109-120
(95%)
(5%)
Thereafter
(100%)
(0%)
If, for examp e, the Property is sold, rented, refinanced, conveyed, or transferred in the first year of the
term of the Note secured by this Deed of Trust, Owner shall receive fifty percent (50%) of the Equity in the
15
Attachment No. 1
Exhibit I: First -Time Homebuyer Assistance Program Manual
Property and the City shall receive fifty percent (50%) of the Equity. "Equity" is defined as the dollar
amount that constitutes the difference between the sales price of the Property (or in the event of a sale of
the Property for an amount other than its fair market value or where there is no price established for the
Property (i.e., rental or refinancing the Property, Borrower's failure to occupy the Property, material
breach of the Note, Deed of Trust or this Agreement; or the filing of bankruptcy by the Borrower, the fair
market value of the Property determined by an appraiser chosen by the Beneficiary in its sole discretion)
and the sum of the following amounts:
principal on the First Note and the Deed of Trust, along with any interest
and fees due thereon; and
principal on the Note and Deed of Trust, along with any interest and fees
due thereon; and
all costs of sale, including costs of brokers' commissions, escrow fees,
title costs and fees, recording costs, etc.; and
current year taxes, including all pro-rata real estate taxes calculated to
the date of sale; and
borrower's down payment not including the Loan from the City to the
Owner; and
all principal paid down on the First Note and Deed of Trust; and
costs of any improvements to the Property, provided such improvements
were approved by the City prior to construction and provided that such
improvements have been documented to the satisfaction of the City.
The amount of the Owner's share in the Equity of the Property shall increase by five percent (5%) per
year, measured on the anniversary of the date of the Deed of Trust is recorded against the Property.
Correspondingly, the City's share in the equity of the Property shall decrease by five percent (5%) per
annum. For the sake of example, if the Property is sold more than five (5) but less than six (6) years after
the date of the Deed of Trust is recorded against the Property, the City would have a twenty five percent
(25%) share in the Equity and the Owner would have a seventy five percent (75%) share in the Equity of
the Property.
In the event that no Equity exists at the time of transfer or sale, the balance of the Note (item E.1.b
above) will be due and payable as provided herein. In the event that a negative Equity situation exists,
i.e., the proceeds from the sale of the Property are less than the balance of the Note, all net proceeds
from the transfer or sale shall be paid to the City, as beneficiary in full satisfaction of the Note. When the
HOME recapture requirement is triggered by a sale (voluntary or involuntary) of the housing unit, and
there are no net proceeds or the net proceeds are insufficient to repay the home investment due, the
participating jurisdiction can only recapture the net proceeds, if any. The net proceeds are the sales price
minus superior Loan repayment (other than HOME funds) and any closing costs.
F. PROPERTY MAINTENANCE AND SECURITY
During the Effective Period, Owner shall at his or her own expense maintain the Property in good
condition, in good repair, and in decent, safe, sanitary and habitable living conditions for the benefit of
that Owner's household. Owner shall maintain the Property in conformance with all applicable state,
federal and local laws, ordinances, codes and regulations.
In the event that Owner fails to maintain the Property in accordance with these standards and after at
least thirty (30) business days prior notice to Owner, the City or the City's contractor or agent may, but
shall be under no obligation to, enter upon the Property, make such repairs or replacements as are
deemed necessary in the City's discretion, and provide for payment thereof. Any amount advanced by the
City to make such repairs, together with interest thereon from the date of such advance at the rate of
seven percent (7%) per annum (unless payment of such an interest rate would be contrary to applicable
law, in which event such sums shall bear interest at the highest rate then allowable by applicable law),
shall become an additional obligation of the Owner to the City and shall be secured by any Deed of Trust,
if not previously reconveyed.
16
Attachment No. 1
Exhibit I: First -Time Homebuyer Assistance Program Manual
G. REPAYMENTS
HOME Funds that are loaned to the Owner are to be remitted (principal and interest, as warranted) to the City
to be retained and used as program income to originate additional Loans to First -Time Homebuyers.
H. PROPERTY REQUIREMENTS
Compliance with the following requirements is required as follows:
1. Maximum per -unit subsidy amount. The amount of HOME funds that a participating
jurisdiction may invest on a per -unit basis in affordable housing will not exceed the per -unit
dollar limits established by HUD.
2. Property Standards. Housing that is assisted with HOME funds, at a minimum, must meet
Section 8 Housing Quality Standards.
3. Property Cost Limits. The value of acquisition and development of the housing unit,
located in the City of National City must not exceed 95 percent (95%) of the median price for
the area, as determined by the U.S. Department of Housing and Urban Development.
4. Occupancy Requirements. The HOME Program requires that occupancy standards must
be maintained for the Effective Period for each of the assisted Houses as follows:
(a) The prospective purchaser must be low income; that is, the purchaser must have an
annual (gross) income that does not exceed Eighty Percent (80%) of Area Median
Income, which will be determined at either the time the household initially occupies the
property or at the time the HOME funds are invested; whichever is later.
(b) Each Owner must occupy the property as a principal residence. Only Loan default
and subsequent foreclosure negates the principal residence limitation.
5. Ownership Interest. The purchaser must have fee simple title upon sale of a HOME -assisted
unit or cooperative ownership interest upon sale of a HOME -assisted unit.
6. Refinance. The City will subordinate to the following refinance situations only, subject to City
approval and additional documentation is required:
(a) FHA streamline refinance, with a reduction in total PITI and no cash out.
(b) VA rate reduction refinance, with a reduction in total PITI and no cash out.
(c) Conventional rate and term refinance, with a reduction in total PITI and no cash out.
REVERSION OF ASSETS
Owner must transfer to the City any HOME funds remaining in the Property after the time of expiration of the
Effective Period when there is a change to title on the Property or any sale, rental, refinance, conveyance or
transfer of Property. Any funds received as a result of this reversion of assets shall be used for additional
HOME -eligible activities.
J. DEFAULTS AND REMEDIES
In the event of any breach or violation of any agreement or obligation under this Agreement, the City may
proceed with any or all of the remedies as described in paragraph 18 of the Deed of Trust.
K. NON -LIABILITY OF OFFICIALS, EMPLOYEES AND AGENTS
No officer, official, director, employee, agent or representative of the City shall be personally liable to Owner
for any obligation created under the terms of this Agreement except in the case of actual fraud or willful
misconduct by such person.
L. INDEMNITY
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Attachment No. 1
Exhibit I: First -Time Homebuyer Assistance Program Manual
Notwithstanding the insurance coverage required herein, Owner shall indemnify and hold City and its officers,
officials, directors, employees, agents and authorized representatives (each, an "Indemnified Party," and
collectively, "Indemnified Parties"), free and harmless against any losses, damages, liabilities, claims,
demands, judgments, actions, court costs, and legal or other expenses (including attorney's fees) which any
Indemnified Party may incur as a direct or indirect consequence of (1) Owner's failure to perform any
obligations as and when required by this Agreement; (2) any failure of any of Owner's representations or
warranties to be true and complete; or (3) any act or omission by Owner or any contractor, subcontractor,
management agent, or supplier with respect the Property, except where such losses are caused by the sole
negligence or willful misconduct of Indemnified Parties. Owner shall pay immediately upon the City's demand
any amounts owing under this indemnity. The duty of the Owner to indemnify includes the duty to defend
Indemnified Parties in any court action, administrative action, or other proceeding brought by any third party
arising from the Property. Owner's duty to indemnify Indemnified Parties shall survive the term of this
Agreement.
M. SUBORDINATION
This Agreement shall be subordinated in priority only to the liens and encumbrances approved in writing
by the City in its sole and absolute discretion.
N. GENERAL PROVISIONS
1. Governing Law. This Agreement shall be interpreted under and be governed by the laws
of the State of California, except for those provisions relating to choice of law and those
provisions preempted by federal law.
2. This Agreement Controls. In the event that any provisions of this Agreement and any
Loan Documents conflict, the terms of this Agreement shall control.
3. Time. Time is of the essence in this Agreement.
4. Consents and Approvals. For those provisions of this agreement which are expressly
subject to consent or approval of the City, said consent or approval shall not be
unreasonably withheld. Any approval must be in writing and executed by an authorized
representative of the City.
5. Notices, Demands and Communications. Formal notices, demands and communications
between Owner and the City shall be sufficiently given and shall not be deemed given
unless dispatched by mailing it first class mail or by certified mail, return receipt
requested, to the principal offices of Owner and City as follows:
Housing and Grants
City of National City
1243 National City Boulevard
National City, CA 91950-4397
New Owner: Borrower
Address: 1111 AAve
National City, CA 91950
Any such written communications by mail shall be conclusively deemed to have been
received by the addressee five days after the deposit thereof in the United States Mail,
postage prepaid and properly addressed as noted above.
6. Severability. Every provision of this Agreement is intended to be severable. If any provision
of this Agreement shall be held invalid, illegal, or unenforceable by a court of competent
jurisdiction, the validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired.
7. Attorney's Fees. In the event of any litigation over the performance of this Agreement, the
prevailing party shall be entitled to attorney's fees and costs incurred during the course of
litigation.
18
Attachment No. 1
Exhibit I: First -Time Homebuyer Assistance Program Manual
IN WITNESS HEREOF, the City and the Owner have executed this Agreement as of the date first
hereinafter set forth.
City of National City
By:
Leslie Deese, City Manager
Owner:
By:
Buyer
19
Attachment No. 1
Exhibit I: First -Time Homebuyer Assistance Program Manual
"Exhibit A"
Legal Description
(must be attached prior to recordation)
The land referred to herein is situated in the State of CALIFORNIA, County of SAN DIEGO, and described as
follows:
20
Attachment No. 1
Exhibit I: First -Time Homebuyer Assistance Program Manual
APPENDIX D
DEED OF TRUST
FREE RECORDING REQUESTED PURSUANT
TO GOVERNMENT CODE SECTION 27383
WHEN RECORDED PLEASE MAIL TO:
Office of the City Clerk
City of National City
1243 National City Boulevard
National City, CA 91950-4397
(SPACE ABOVE FOR RECORDER'S USE ONLY)
APN: XXX-XXX-XX FTHB #XXXX
HOMEOWNER'S REGULATORY AGREEMENT FOR HOME PROGRAM PARTICIPATION
THIS REGULATORY AGREEMENT ("Regulatory Agreement" or "Agreement") is entered into as
of this 18th day of January, 2011 between the City of National City ("City"), and a Qualifying
Household, on behalf of itself and Borrower Name ("Owner").
PREFACE
WHEREAS, the City of National City receives a formula HOME Investment Partnerships ("HOME")
Program allocation from the Federal Department of Housing and Urban Development to carry out eligible
activities in accordance with program requirements; and
WHEREAS, the Owner is interested in participating in City 's HOME -funded First -Time Homebuyer
Program, and will comply with all program regulations and requirements; and
WHEREAS, concurrently with the recordation of this Regulatory Agreement the City is funding a loan
("Loan") secured by a deed of trust ("Deed of Trust") to aid Owner, who is a first-time homebuyer, in acquiring
the Property described below. The Trust Deed and Loan by the City was conditioned in part upon the
recordation of a document setting forth certain restrictions upon the use and sale of the Property; and
WHEREAS, Owner will use the proceeds of such Loan for the acquisition of the real property with
the street address of 1111 A Avenue, National City, California, 91950 more particularly described in
Exhibit A attached and incorporated by this reference ("Property"); and
WHEREAS, as further consideration for the Loan and to further the interests of the City, the Owner
has agreed to enter into and record this Agreement.
The covenants in this Agreement are intended to run with the land and be binding on the Owner for the full
term of this Agreement.
NOW, THEREFORE, THE PARTIES MUTUALLY AGREE AS FOLLOWS;
The Owner shall receive HOME Investment Partnership funds for investment in real property owned by the
Owner, as evidenced by legal title or a valid contract of sale. Acting in this capacity, the Owner will comply
with all aspects of HOME regulations 24 CFR §92.504 including the following:
21
Attachment No. 1
Exhibit I: First -Time Homebuyer Assistance Program Manual
D. DEFINITIONS
The following terms have the meanings and content set forth in this Section A where used in this
Agreement or attached exhibits.
17. "AREA MEDIAN INCOME" means the median income for the San Diego County Primary
Metropolitan Statistical Area (PMSA), with adjustments for household size, as adjusted
from time to time by the U.S. Dept. of Housing and Urban Development (HUD).
18. "CITY" is of the City of National City, California, a public body corporate and politic.
19. "DEED OF TRUST" means any deed of trust, assignment of rents, and security agreement
placed on the Property or any part thereof as security for any Loan and other obligations
with Owner as trustor and City as beneficiary, as well as any amendments to, modification
of, and restatements of said deed (s) of trust.
20. "EFFECTIVE PERIOD" means the period commencing on the date of this agreement and
ending on the repayment of the Loan from the City, including the repayment of any required
Equity as defined in Section E of the Agreement.
21. "EIGHTY PERCENT OF AREA MEDIAN INCOME" means annual income, which does not
exceed eighty percent (80%) of the Area Median Income.
22. "HUD" means the United States Department of Housing and Urban Development.
23. "HOME FUNDS/HOME INVESTMENT": funds received pursuant to the HOME Investment
Partnership Program under the Department of Housing and Urban Development (HUD),
codified at 42 U.S.C. Section 12701, et seq., 24 CFR Part 92, to provide funds for affordable
housing.
24. "HOMEOWNER INVESTMENT": homeowner's down payment and any capital improvement
investment made by the owner since purchase.
25. "HOUSE" means the residential dwelling unit that is located on the Property.
26. "LOAN" is any Loan of funds provided by the City to any Owner for the purchase of the
Property.
27. "LOAN DOCUMENTS" are collectively the Deed of Trust, Note, Note Rider, this
Regulatory Agreement and any loan agreement, deed of trust, or promissory note entered
into between City and Owner with respect to any of the Property, as they may be amended,
modified or restated from time to time, along with all exhibits and attachments to these
documents.
28. "NOTE" means the promissory note and note rider executed by Owner in favor of City
evidencing any part of a Loan, which is secured by a Deed of Trust, as well as any
amendments to, modifications or, or restatements of said promissory note. The Note will be
on file with the City.
29. "OWNER" or "OWNERS" is the Qualifying Household that is the purchaser of the
Property.
30. "PROPERTY" means the real property located at: 2825 J Street, National City ,
California, 91950 and described in the attached Exhibit A, which is hereby incorporated
into this Agreement by this reference, and any buildings or improvements now or hereafter
situated on said real property.
31. "QUALIFYING HOUSEHOLD" means a household whose income is Eighty Percent of
Area Median Income, as determined periodically by HUD, with adjustments in accordance
with 24 CFR 92.252, and who is otherwise eligible to purchase the Property.
32. "QUALIFYING SALES PRICE" means a sales price that does not exceed 95 percent
(95%) of the median purchase price for the area, as determined by the U.S. Department of
Housing and Urban Development.
22
Attachment No. 1
Exhibit I: First -Time Homebuyer Assistance Program Manual
E. TERM OF AGREEMENT
The term of this Agreement shall remain in full force and effect during the Effective Period regardless of
any expiration of the term of any Loan, any payment or prepayment of any Loan, any assignment of a
Note, any reconveyance of a Deed of Trust, or any sale, assignment, transfer, or conveyance of the
Property, unless terminated earlier by the City in writing or extended by the mutual consent of the parties.
However, failure to record this Agreement by the City shall not relieve Owner of any of the obligations
specified herein. The covenants in this Agreement will run with the land for the benefit of the City and its
heirs, assigns and successors and be binding on Owner and Owner's heirs, assigns and successors for
the full term of this Agreement.
F. USE OF FUNDS
The Loan will be used to acquire the Property by the Owner who is a member of a Qualifying Household.
F. AFFORDABILITY
4. The House will qualify as affordable housing and will have:
(a) an initial purchase price that is a Qualifying Sales Price; and
(b) an estimated appraised value at acquisition that does not exceed Qualifying
Sales Price.
5. The House must be the principal residence of the Owner at all times during the
Effective Period.
6. The deferred Loan for the HOME -assisted House is $ 40,000.00.
G. RECAPTURE OF HOME FUNDS
Pursuant to 24 CFR 92.254(a) (ii), the City requires that HOME funds be recaptured if the housing does
not continue to be the principal residence of the family. If there is a "transfer," the principal amount of the
Note, together with a share of the "Equity" (if any), as hereafter defined, shall be immediately due and
payable to the City. A "transfer" means (i) all or any part of the Property or any interest in the Property
that is sold, conveyed or transferred; (ii) Owner is not a natural person and a beneficial interest in Owner
is sold, conveyed or transferred; (iii) all or any part of the Property is refinanced, except as otherwise
allowed by law; (iv) Owner does not occupy the Property as his, her, or their, primary residence; (v) the
leasing of all or any part of the Property; (vi) any material breach of the Note, Deed of Trust or this
Agreement; or (vii) the filing of bankruptcy by the Owner. The Equity in the Property shall be calculated
and shared between the Owner and City on the following basis:
# Months After Date
of Agreement
Buyer's Equity Share
(Increases 5% per year)
City Equity Share
(Decreases 5% per year)
0-12
(50%)
(50%)
13-24
(55%)
(45%)
25-36
(60%)
(40%)
37-48
(65%)
(35%)
49-60
(70%)
(30%)
61-72
(75%)
(25%)
73-84
(80%)
(20%)
85-96
(85%)
(15%)
97-108
(90%)
(10%)
109-120
(95%)
(5%)
Thereafter
(100%)
(0%)
If, for examp e, the Property is sold, rented, refinanced, conveyed, or transferred in the first year of the
term of the Note secured by this Deed of Trust, Owner shall receive fifty percent (50%) of the Equity in the
Property and the City shall receive fifty percent (50%) of the Equity. "Equity" is defined as the dollar
amount that constitutes the difference between the sales price of the Property (or in the event of a sale of
the Property for an amount other than its fair market value or where there is no price established for the
23
Attachment No. 1
Exhibit I: First -Time Homebuyer Assistance Program Manual
Property (i.e., rental or refinancing the Property, Borrower's failure to occupy the Property, material
breach of the Note, Deed of Trust or this Agreement; or the filing of bankruptcy by the Borrower, the fair
market value of the Property determined by an appraiser chosen by the Beneficiary in its sole discretion)
and the sum of the following amounts:
(h) principal on the First Note and the Deed of Trust, along with any interest
and fees due thereon; and
(i) principal on the Note and Deed of Trust, along with any interest and fees
due thereon; and
Q) all costs of sale, including costs of brokers' commissions, escrow fees,
title costs and fees, recording costs, etc.; and
(k) current year taxes, including all pro-rata real estate taxes calculated to
the date of sale; and
(I) borrower's down payment not including the Loan from the City to the
Owner; and
(m) all principal paid down on the First Note and Deed of Trust; and
(n) costs of any improvements to the Property, provided such improvements
were approved by the City prior to construction and provided that such
improvements have been documented to the satisfaction of the City.
The amount of the Owner's share in the Equity of the Property shall increase by five percent (5%) per
year, measured on the anniversary of the date of the Deed of Trust is recorded against the Property.
Correspondingly, the City's share in the equity of the Property shall decrease by five percent (5%) per
annum. For the sake of example, if the Property is sold more than five (5) but Tess than six (6) years after
the date of the Deed of Trust is recorded against the Property, the City would have a twenty five percent
(25%) share in the Equity and the Owner would have a seventy five percent (75%) share in the Equity of
the Property.
In the event that no Equity exists at the time of transfer or sale, the balance of the Note (item E.1.b
above) will be due and payable as provided herein. In the event that a negative Equity situation exists,
i.e., the proceeds from the sale of the Property are Tess than the balance of the Note, all net proceeds
from the transfer or sale shall be paid to the City, as beneficiary in full satisfaction of the Note. When the
HOME recapture requirement is triggered by a sale (voluntary or involuntary) of the housing unit, and
there are no net proceeds or the net proceeds are insufficient to repay the home investment due, the
participating jurisdiction can only recapture the net proceeds, if any. The net proceeds are the sales price
minus superior Loan repayment (other than HOME funds) and any closing costs.
F. PROPERTY MAINTENANCE AND SECURITY
During the Effective Period, Owner shall at his or her own expense maintain the Property in good
condition, in good repair, and in decent, safe, sanitary and habitable living conditions for the benefit of
that Owner's household. Owner shall maintain the Property in conformance with all applicable state,
federal and local laws, ordinances, codes and regulations.
In the event that Owner fails to maintain the Property in accordance with these standards and after at
least thirty (30) business days prior notice to Owner, the City or the City's contractor or agent may, but
shall be under no obligation to, enter upon the Property, make such repairs or replacements as are
deemed necessary in the City's discretion, and provide for payment thereof. Any amount advanced by the
City to make such repairs, together with interest thereon from the date of such advance at the rate of
seven percent (7%) per annum (unless payment of such an interest rate would be contrary to applicable
law, in which event such sums shall bear interest at the highest rate then allowable by applicable law),
shall become an additional obligation of the Owner to the City and shall be secured by any Deed of Trust,
if not previously reconveyed.
24
Attachment No. 1
Exhibit I: First -Time Homebuyer Assistance Program Manual
G. REPAYMENTS
HOME Funds that are loaned to the Owner are to be remitted (principal and interest, as warranted) to the City
to be retained and used as program income to originate additional Loans to First -Time Homebuyers.
H. PROPERTY REQUIREMENTS
Compliance with the following requirements is required as follows:
1. Maximum per -unit subsidy amount. The amount of HOME funds that a participating
jurisdiction may invest on a per -unit basis in affordable housing will not exceed the per -unit
dollar limits established by HUD.
2. Property Standards. Housing that is assisted with HOME funds, at a minimum, must meet
Section 8 Housing Quality Standards.
3. Property Cost Limits. The value of acquisition and development of the housing unit,
located in the City of National City must not exceed 95 percent (95%) of the median price for
the area, as determined by the U.S. Department of Housing and Urban Development.
4. Occupancy Requirements. The HOME Program requires that occupancy standards must
be maintained for the Effective Period for each of the assisted Houses as follows:
(c) The prospective purchaser must be low income; that is, the purchaser must have an
annual (gross) income that does not exceed Eighty Percent (80%) of Area Median
Income, which will be determined at either the time the household initially occupies the
property or at the time the HOME funds are invested; whichever is later.
(d) Each Owner must occupy the property as a principal residence. Only Loan default
and subsequent foreclosure negates the principal residence limitation.
5. Ownership Interest. The purchaser must have fee simple title upon sale of a HOME -assisted
unit or cooperative ownership interest upon sale of a HOME -assisted unit.
6. Refinance. The City will subordinate to the following refinance situations only, subject to City
approval and additional documentation is required:
(d) FHA streamline refinance, with a reduction in total PITI and no cash out.
(e) VA rate reduction refinance, with a reduction in total PITI and no cash out.
(f)Conventional rate and term refinance, with a reduction in total PITI and no cash out.
REVERSION OF ASSETS
Owner must transfer to the City any HOME funds remaining in the Property after the time of expiration of the
Effective Period when there is a change to title on the Property or any sale, rental, refinance, conveyance or
transfer of Property. Any funds received as a result of this reversion of assets shall be used for additional
HOME -eligible activities.
J. DEFAULTS AND REMEDIES
In the event of any breach or violation of any agreement or obligation under this Agreement, the City may
proceed with any or all of the remedies as described in paragraph 18 of the Deed of Trust.
K. NON -LIABILITY OF OFFICIALS, EMPLOYEES AND AGENTS
No officer, official, director, employee, agent or representative of the City shall be personally liable to Owner
for any obligation created under the terms of this Agreement except in the case of actual fraud or willful
misconduct by such person.
L. INDEMNITY
Notwithstanding the insurance coverage required herein, Owner shall indemnify and hold City and its officers,
officials, directors, employees, agents and authorized representatives (each, an "Indemnified Party," and
collectively, "Indemnified Parties"), free and harmless against any losses, damages, liabilities, claims,
25
Attachment No. 1
Exhibit I: First -Time Homebuyer Assistance Program Manual
demands, judgments, actions, court costs, and legal or other expenses (including attorney's fees) which any
Indemnified Party may incur as a direct or indirect consequence of (1) Owner's failure to perform any
obligations as and when required by this Agreement; (2) any failure of any of Owner's representations or
warranties to be true and complete; or (3) any act or omission by Owner or any contractor, subcontractor,
management agent, or supplier with respect the Property, except where such losses are caused by the sole
negligence or willful misconduct of Indemnified Parties. Owner shall pay immediately upon the City's demand
any amounts owing under this indemnity. The duty of the Owner to indemnify includes the duty to defend
Indemnified Parties in any court action, administrative action, or other proceeding brought by any third party
arising from the Property. Owner's duty to indemnify Indemnified Parties shall survive the term of this
Agreement.
M. SUBORDINATION
This Agreement shall be subordinated in priority only to the liens and encumbrances approved in writing
by the City in its sole and absolute discretion.
N. GENERAL PROVISIONS
8. Governing Law. This Agreement shall be interpreted under and be governed by the laws
of the State of California, except for those provisions relating to choice of law and those
provisions preempted by federal law.
9. This Agreement Controls. In the event that any provisions of this Agreement and any
Loan Documents conflict, the terms of this Agreement shall control.
10. Time. Time is of the essence in this Agreement.
11. Consents and Approvals. For those provisions of this agreement which are expressly
subject to consent or approval of the City, said consent or approval shall not be
unreasonably withheld. Any approval must be in writing and executed by an authorized
representative of the City.
12. Notices, Demands and Communications. Formal notices, demands and communications
between Owner and the City shall be sufficiently given and shall not be deemed given
unless dispatched by mailing it first class mail or by certified mail, return receipt
requested, to the principal offices of Owner and City as follows:
City of National City
Housing and Grants
1243 National City Boulevard
National City, CA 91950-4397
New Owner: Borrower Name
Address: 1111 A Avenue
National City, CA 91950
Any such written communications by mail shall be conclusively deemed to have been
received by the addressee five days after the deposit thereof in the United States Mail,
postage prepaid and properly addressed as noted above.
13. Severability. Every provision of this Agreement is intended to be severable. If any provision
of this Agreement shall be held invalid, illegal, or unenforceable by a court of competent
jurisdiction, the validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired.
14. Attorney's Fees. In the event of any litigation over the performance of this Agreement, the
prevailing party shall be entitled to attorney's fees and costs incurred during the course of
litigation.
IN WITNESS HEREOF, the City and the Owner have executed this Agreement as of the date first
hereinafter set forth.
City of National City
26
Attachment No. 1
Exhibit I: First -Time Homebuyer Assistance Program Manual
By:
Leslie Deese, City Manager
Owner:
By:
Borrower XXXXX
27
Attachment No. 1
Exhibit I: First -Time Homebuyer Assistance Program Manual
"Exhibit A"
Legal Description
(must be attached prior to recordation)
The land referred to herein is situated in the State of CALIFORNIA, County of SAN DIEGO, and described as
follows:
28
Attachment No. 1
Exhibit I: First -Time Homebuyer Assistance Program Manual
APPENDIX E
PROMISSORY NOTE
APN: XXX-XXX-XX-XX FTHB # XXXX-XXXX
NOTICE: THIS NOTE MAY REQUIRE PAYMENT OF PRINCIPAL AND INTEREST UPON THE SALE
OR TRANSFER OF THE PROPERTY OR UPON A PREPAYMENT. FURTHER, THIS NOTE IS A
SHARED APPRECIATION NOTE AS DEFINED IN SECTION 1917, ET SEQ. OF THE CALIFORNIA
CIVIL CODE.
$ 00,000.00
Amount
PROMISSORY NOTE SECURED BY DEED OF TRUST
, 2009
Date
000 XXXX, National City, California 91950
[Property Address]
1. Borrower's Promise to Pay. For value received, the undersigned, XXXXX XXXXX ("Borrower"),
promises to pay to the City of National City ("City"), or order, the sum of XXXXX Thousand Dollars
and 00/Cents ($00,000.00) with interest accruing thereon as hereinafter provided, and payable as set
forth below. It is understood that the City may transfer this Note. The Lender or anyone who takes
this Note by transfer and who is entitled to receive payments under this Note will be called the "Note
Holder".
2. No Interest. This Note will bear no interest unless the Borrower defaults under the terms of this
Note, the Deed of Trust securing it and/or the Homeowner's Regulatory Agreement for Home
Program Participation ("Home Agreement") affecting the Property. In the event of default, interest
from the Date of this Note shall be calculated at the greater of the following amounts:
a) The rate equal to the interest rate of the senior trust deed or, in the event of no senior
trust deed; or
b) ten percent (10%) per annum.
3. Payments and Term. The term of this Note extends until the earlier of default by Borrower under the
terms of this Note, the Deed of Trust or the Home Agreement, or the day Borrower sells, rents,
refinances, transfers or changes the title of the property ("Property") described in the Deed of Trust.
Sale, rental, refinance, conveyance, transfer or change in title of the property prior to the tenth (10th)
anniversary date of the Deed of Trust will trigger the shared equity in addition to the principal, as
described in the accompanying Deed of Trust. A "transfer" means (i) all or any part of the Property or
any interest in the Property is sold, conveyed or transferred; (ii) Borrower is not a natural person and
a beneficial interest in Borrower is sold, conveyed or transferred; (iii) all or any part of the Property is
refinanced, except as otherwise allowed by law; (iv) Borrower does not occupy the Property as his,
her, or their, primary residence; (v) the leasing of all or any part of the Property; (vi) any material
breach of this Note (including, without limitation, the Note Rider), the Home Agreement or the Deed of
Trust; or (vii) the filing of bankruptcy by the Borrower. No delay or omission on the part of the City
shall operate as a waiver of such right of repayment or of any other right under this Note. Upon a
29
Attachment No. 1
Exhibit I: First -Time Homebuyer Assistance Program Manual
Transfer, the principal amount of this Note, together with a share of the Equity (if any) as set forth in
the Note Rider attached hereto, shall be immediately due and payable to the City. The City shall not
exercise this right of acceleration if prohibited by federal law as of the date of the Deed of Trust or if
the City has executed a separate written waiver of this option. The following shall not constitute a
Transfer:
(a) A transfer of the Property from a deceased Borrower to the surviving spouse of
the Borrower if the surviving spouse is also named as a Borrower;
(b) A transfer of the Property by a Borrower to his/her spouse pursuant to which the
spouse becomes a co-owner of the Property;
(c) A transfer of the Property resulting from a decree of dissolution of the marriage or
legal separation or from a property settlement agreement incidental to such a
decree which requires the Borrower to continue to make payments on the Note
and by which a spouse who is already a Borrower becomes the sole owner of the
Property;
(d) A transfer of the Property to a Borrower to an inter-vivos trust in which the
Borrower is the sole beneficiary;
(e) A transfer by means of encumbering the Property with a lien that is a junior lien
to the lien securing the loan to Borrower evidenced by the Deed of Trust.
All payments made under this Note shall be paid in lawful money of the United States to the City of
National City at 1243 National City Boulevard, National City, CA 91950.
4. Prepayment. Borrower has the right to prepay the principal without incurring any penalty, apart from
any interest that may be due under default provisions above. In the event that Borrower chooses to
prepay the Note, Borrower must notify Note Holder in writing. All payments received on account of
this Note shall be first applied to accrued interest, if any, and the remainder shall be applied to the
reduction of principal. PAYMENT OF THE NOTE SHALL NOT AFFECT THE OBLIGATION TO
SHARE EQUITY WITH THE City AS PROVIDED IN THE NOTE RIDER ATTACHED HERETO.
5. Relinquishment of Equity. Provided that Borrower is not in default under the terms of this Note, the
Deed of Trust or the Home Agreement and Borrower has continually occupied the Property as
Borrower's principal residence, the City's interest in the equity of the property shall be relinquished by
City ten (10) years from the date of the execution of the Note. Nothing contained in this paragraph 5
shall be construed as a promise by City to forgive or relinquish the right to seek repayment of the
principal of the Note.
6. Default Under Deed of Trust or Home Agreement. Notwithstanding any other provisions of the
Note, if default occurs in any of the covenants or agreements contained in the Deed of Trust or the
Home Agreement, the principal amount of this Note, together with a share of the Equity (if any) or
default interest as set forth in Section 2, above (whichever is greater), shall be immediately become
due and payable in full at the option of City.
7. Attorneys' Fees. Should suit be commenced to collect on this Note, or any portion thereof, such
sum as the court may deem reasonable shall be added hereto as attorneys' fees.
8. Time. Time is of the essence herein.
9. Amendments. This Note may not be modified or amended except by an instrument in writing
expressing such intention and signed by an authorized representative of City and Borrower.
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Attachment No. 1
Exhibit I: First -Time Homebuyer Assistance Program Manual
10. Severability. If any term or provision hereof is illegal or invalid for any reason whatsoever, such
illegality or invalidity shall not affect the validity and binding effect of the remainder of this Note upon
the parties.
11. Borrower's Waivers. Borrower waives any rights to require City to perform certain acts. Those acts
are:
(a) To demand payment of amounts due (known as "presentment").
(b) To give notice that amounts due have not been paid (known as "notice of dishonor").
(c) To obtain an official certification of non-payment (known as "protest").
12. Giving of Notices. Any notice that must be given to Borrower under this Note will be given by
delivering it or by mailing it first class mail or by certified mail, return receipt requested, addressed to
Borrower at the address set forth above. A notice that must be given to City under this Note will be
given by mailing it certified mail, return receipt request, to City at the address stated in Section 3
above. Any party may change its address by a notice given to the other party in the manner set forth
in this Section.
13. Joint and Several Responsibility. If more than one person executes this Note, each is fully and
personally obligated to pay the full amount owed and to keep all promises in this Note.
Date:
NOTICE TO BORROWER
Do not sign this Note if it contains blank spaces.
All spaces should be completed before you sign.
Borrower XXXXX
Borrower XXXXX
31