7-Appendix 3 PROGRAM STATEMENTS.pdf

Programs have been adopted by the Dallas City Council Between May 9, 2018, and June 12, 2024

Appendix 3 – PROGRAM STATEMENTS

PROGRAMS

HOMEOWNER PROGRAMS

The Department of Housing and Neighborhood Revitalization (“Housing” or the “Housing Department") strengthens families and neighborhoods to cultivate a diverse and economically inclusive City by creating affordable and safe housing and mitigating community member displacement.

Home Improvement and Preservation Program – Pillars 1, 3, 4, 5, 6, 7 Added/amended June 26, 2019, by Resolution No. 19-1041 Amended August 26, 2020, by Resolution No. 20-1220 Amended September 9, 2021, by Resolution No. 21-1450 Amended March 27, 2024, by Resolution No 24-762

The Home Improvement & Preservation Program (HIPP) addresses home repair through emergency repair, Dallas Tomorrow Fund for exterior code violations and major systems rehabilitation for eligible single-family owner-occupied units in the City of Dallas.

HIPP has three components for the purposes of making needed improvements and preserving affordable housing:

1) Emergency Home Rehabilitation (EHR) that provides grant assistance to low- and moderate-income homeowners needing emergency repairs.

2) Dallas Tomorrow Fund (DTF) for exterior code violations that provides grant assistance to low-and moderate-income homeowners needing exterior code violation repairs.

3) Major-Systems Repair Program (MSRP) that provides forgivable loan assistance to low- and moderate-income homeowners needing systems rehabilitation to their home.

Administration The City of Dallas Department of Housing and Neighborhood Revitalization staff or their designees, consultants, contractors, subrecipients, or other third-party organizations procured by the City, as permitted by applicable laws and regulations, may administer all or parts of HIPP and shall have experience relevant to the program services and must follow all funding source protocols. Services may include rehabilitation activities of single family homes or administration of HIPP which may include direct delivery costs, application evaluation, procedures for eligibility review, rehabilitation assessments, cost estimation, bid solicitation, contractor selection, construction management, inspection, disbursement of program funds and processing of notices of completion, and other duties as established in the program guidelines, procurement method and/or the policies and procedures. Applications received for The Targeted Rehab Program, Senior Home Repair, or HIPP since August 2022 can be applied to the amended program

Funding for HIPP may be federal or non-federal.

The Director of Housing & Neighborhood Revitalization (the “Director”) shall be responsible for ensuring that all programs are implemented in accordance with all applicable regulations.

Applicants for HIPP will be selected based upon funding being utilized and may include, but is not limited to, factors such as: location of property, age of applicant or home, type of repair, or a combination of factors. The Department of Housing and Neighborhood Revitalization staff will determine the way applications will be received, processed and selected. Details will be posted on the Department of Housing and Neighborhood Revitalization website.

If an applicant has received prior assistance and is within the affordability period from any other City of Dallas home repair programs, the applicant may be eligible for additional service. Additional deeds of trust or deed restrictions may be filed when necessary. An applicant is not eligible for additional Dallas Tomorrow Fund assistance if they have received funds from the Dallas Tomorrow Fund within the preceding 60 months.

All applicants will be required to submit for themselves and must include information on all household members:

1. Complete Application

2. Proof of Identity

3. Proof of Income

4. Proof of Ownership

5. Proof of Needed Repairs

Emergency Home Rehabilitation Applicant

Eligibility

Applicants must be the owner of the home to be repaired and must have occupied the home for at least six months prior to the date of application (“Applicant”). Applicants must submit a deed showing the conveyance, or similar documentation acceptable to the City in its sole discretion, that proves ownership in fee simple.

Applicants must be a U.S. citizen or lawful permanent resident, and they must hold a current Texas state-issued identification card or driver’s license.

Applicants must have a gross annual household income at or below 80% Area Median Income (“AMI"). Income shall be calculated using the Part 5 method as outlined in 24 CFR

5.609. Income eligibility shall be determined at the time of the application. Applicant household income eligibility is only valid for six months from the date of the last application.

Applications for emergency home repair may be submitted throughout the year. To be eligible for assistance under this program, the application must demonstrate that the emergency situation was caused within the four days preceding submission of the application, and it poses an immediate life or health and safety concern. Applications will be reviewed if funding is available.

Applicants must be willing to voluntarily relocate at the homeowner’s expense, if necessary.

City Council members, Department of Housing & Neighborhood Revitalization employees and any employee, official or agent of the City who exercises any policy or program decision-making function in connection with the program are ineligible for assistance under the program.

Property Eligibility Requirements

Must be a single-family dwelling, owner-occupied, and must be located within the City of Dallas, Texas city limits.

Applicant must certify that the home is not for sale at the time of application and is the primary residence of Applicant.

The property must need repairs designated as eligible repairs. The City has the authority to determine what the necessary repairs will be, and if the amount of assistance needed exceeds the limits of the program, the application may be cancelled.

Eligible Repair Improvements Eligible rehabilitation activities include items necessary to address the health and safety of the occupant(s) related to an emergency situation that has occurred within the last four days.

Assistance may not be used for the purchase or repairs of appliances or renovations not necessary to address the emergency need or when relevant to bring the home up to local code or property standards. Ineligible repairs include but are not limited to luxury and recreational items (swimming pools, spas, high end fixtures).

Eligible improvements under the emergency designation may include the following:

Mechanical Replace/repair HVAC systems

Electrical Replace/repair electrical system and installation of ground fault circuit interrupters and may include installation of new smoke, fire, and CO2 alarms

Plumbing Replace/repair plumbing, water and sewer pipes, kitchen and bath fixtures Replace/repair gas pipes/gas testing Replace/repair water heaters

Structural Replace/repair roofing Replace/repair existing exterior cladding Structural repairs/modifications (only to correct existing structural code deficiencies or to provide accessibility to disabled persons)

Other Handicapped improvements & removal of barriers to the handicapped Tree trimming will be in conjunction with repair and only if considered necessary and if allowable under the funding regulation.

Demolition of an accessory structure deemed hazardous, such as a detached garage or work shed, will be made on a case-by-case basis depending on the available budget, grant requirements, planning requirements, current building codes, and health and safety concerns.

The structure will not be rebuilt by the City.

Any items determined eligible by the Director

Terms of Assistance Assistance will be in the form of a grant up to $10,000.00.

Dallas Tomorrow Fund On March 9, 2005, the Dallas Tomorrow Fund (DTF) was created by Ordinance No. 25927 with an amendment to Chapter 27 of the Dallas City Code to provide financial assistance and other guidance to persons determined financially unable to repair or rehabilitate their property or premises in compliance with City ordinances. For each violation for which a person is found liable, $36.00 will be deposited into the Dallas Tomorrow Fund established in Section 27-16.22 of the Dallas City Code.

The city of Dallas established DTF pursuant to Chapter 380 of the Texas Local Government Code in order to make grants of public money to promote local economic development and to stimulate business and commercial activity in the city of Dallas by improving the quality and public safety of residential neighborhoods. The city desires to provide an economic incentive in the form of in- kind grants covering the costs of rehabilitation and/or repair of properties and premises that violate city ordinances and to enter into a grant agreement with an administrator in order to promote within the city of Dallas:

1. Development and diversification of the economy; and

2. Elimination of unemployment and underemployment; and

3. The stability and economic value of residential neighborhoods.

On September 28, 2016, the Dallas City Council approved Ordinance No. 30236 amending City Code Chapter 27, Sections 27-16.13 through 27-16.23, changing the process of referring persons determined financially unable to repair or rehabilitate their property or premises in compliance with city ordinances to the Dallas Tomorrow Fund.

DTF must be used for the sole purpose of rehabilitating and/or repairing properties and premises in the city for persons who are found by the DTF Administrator to be unable to financially comply with a notice of violation issued by the director of Code Compliance under Section 27-16.19 of the Dallas City Code.

The City Manager appoints the DTF Administrator (Administrator). Currently the Department of Housing & Neighborhood Revitalization has been appointed the Administrator of DTF.

DTF is composed of:

1. All Dallas Tomorrow Fund penalties collected under Section 27-16.21(b) of the Dallas City Code;

2. 30 percent of all civil penalties collected by the city for civil lawsuits filed in the municipal court under Subchapter B, Chapter 54 of the Texas Local Government Code. as amended, or under Chapter 214 of the Texas Local Government Code, as amended;

3. Any funds donated by an individual or entity, any of which donations may be refused by a majority vote of the city council.

Applicant Eligibility

Applicants must be the owner of the home to be repaired and must have occupied the home for at least six months prior to the date of application (“Applicant”). Applicants must submit a deed showing the conveyance, or similar documentation acceptable to the City in its sole discretion, that proves ownership in fee simple.

Applicants must be a U.S. citizen or lawful permanent resident, and they must hold a current Texas state-issued identification card or driver’s license.

Applicants must have been found by the Dallas Tomorrow Fund Administrator to be financially unable to comply with the notice of violation issued or financially unable to cover the cost of repairs and must have a gross annual household income at or below 80% AMI.

Income shall be calculated using the Part 5 method as outlined in 24 CFR 5.609. Income eligibility shall be determined at the time of the application. Applicant household income eligibility is only valid for six months from the date of the last application.

Applicant for exterior violation repair must have received a notice of violation or citation from Dallas Code Compliance (DCC) and be referred to Housing to apply by DCC to the Dallas Tomorrow Fund. Applications will not be received without this referral.

Applicants must voluntarily fill out an application with Housing for the purpose of rehabilitating and/or repairing the person's property or premises until it complies with the notice of violation.

Applicant must not have received funds from the Dallas Tomorrow Fund within the preceding 60 months.

Applicants must be willing to voluntarily relocate at the homeowner’s expense, if necessary.

City Council members, Department of Housing & Neighborhood Revitalization employees and any employee, official or agent of the City who exercises any policy or program decision-making function in connection with the program are ineligible for assistance under the program.

Property Eligibility Requirements

Must be a single-family dwelling, owner-occupied, and must be located within the City of Dallas, Texas city limits.

Applicant must certify that the home is not for sale at the time of application and is the primary residence of Applicant.

The property must need repairs designated as eligible repairs. The City has the authority to determine what the necessary repairs will be and if the amount of assistance needed exceeds the limits of the program, the application may be cancelled.

Eligible Repair Improvements Eligible rehabilitation activities include only items needed to address exterior violations or citations needed to bring the structure into compliance with the City’s written rehabilitation standards and applicable local residential codes.

Demolition of an accessory structure deemed hazardous, such as a detached garage or work shed, will be made on a case-by-case basis depending on the available budget, grant requirements, planning requirements, current building codes, and health and safety concerns. The structure will not be rebuilt by the City.

Assistance in removing any items from the property that are considered to be dangerous, hazardous, or a violation of local code is an eligible repair when performed in conjunction with the rehabilitation of eligible improvements on the property.

Assistance may not be used for the purchase or repairs of appliances or renovations not necessary to address the exterior violation or citation.

Eligible improvements may include the following:

All exterior code violations listed on a notice of violation or code citation on the primary structure.

Secondary structure (detached garages, sheds, etc.) demolition only when causing harm to the health and safety of neighboring properties

Ineligible Repairs:

Interior repairs;

Towing vehicles;

Mowing / weeding;

Sidewalk repairs;

Hazardous or Junk removal;

Citations issued by DCC requiring a 48-hour response;

Other repairs not listed on violation or citation;

Chronic code violators.

Terms of Assistance Assistance will be in the form of a grant up to $20,000.00.

Major Systems Repair Program

Applicant Eligibility

Applicants must be the owner of the home to be repaired and must have occupied the home for at least six months prior to the date of application (“Applicant”). Applicants must submit a deed showing the conveyance, or similar documentation acceptable to the City in its sole discretion, that proves ownership in fee simple.

There can be no more than two owners of the property.

Applicants must be a U.S. citizen or lawful permanent resident, and they must hold a current Texas state-issued identification card or driver’s license. Unless allowed by the

U.S. Department of Housing and Urban Development (HUD) or other applicable law.

Applicants must be current on mortgage payments and shall not be in default under the mortgage documents associated with the property or in default under any lien on the property.

Property taxes must be current and not delinquent for any tax year unless the Applicant has entered into a written agreement with the taxing authority outlining a payment plan for delinquent taxes and is abiding to the written agreement.

Applicants must have a gross annual household income at or below 80% AMI. Income shall be calculated using the Part 5 method as outlined in 24 CFR 5.609. Income eligibility shall be determined at the time of the application. Applicant household income eligibility is only valid for six months from the date of the last application.

Chapter 7 or Chapter 13 bankruptcy is not allowed if the primary or any mortgage is included as a secured creditor on the subject property for which the City will place a lien securing the loan.

Applicants can refinance their properties for better terms. However, they shall not be allowed to do a cash out refinance.

City Council members, Department of Housing & Neighborhood Revitalization employees and any employee, official or agent of the City who exercises any policy or program decision-making function in connection with the program are ineligible for assistance under the program.

Applicants must be willing to voluntarily relocate at the homeowner’s expense, if necessary.

Property Eligibility Requirements

Must be a single-family dwelling, owner-occupied, and must be located within the City of Dallas, Texas city limits.

Must obtain environmental clearance under 24 CFR Part 58.5, as amended, prior to committing rehabilitation funds.

Standard property insurance on the primary dwelling unit, satisfactory to the City, must be maintained on the property (with coverage adequate to insure the City’s lien position). If a property is located in a floodplain, as determined by the City, in its sole discretion, flood insurance must also be maintained with coverage adequate to insure the City’s lien position. Insurance will be monitored during the length of the compliance period, which will be until the loan balance is repaid in full or forgiven, as described below. The City has the right to decline a homeowner that may be in a floodplain or floodway.

Applicant must certify that the home is not for sale at the time of application and is the primary residence of Applicant.

The property must need repairs designated as eligible repairs. The City has the authority to determine what the necessary repairs will be and if the amount of assistance needed exceeds the limits of the program, the application may be cancelled.

An Applicant may be eligible to receive more than one major system repair.

Eligible Repair Improvements Eligible rehabilitation activities include items necessary to bring the structure into compliance with the City’s written rehabilitation standards and applicable local residential codes; and will also include items recommended as necessary to preserve the property’s structural integrity, historic integrity, weatherization, and quality of living conditions. Major system repairs include Mechanical, Electrical, Plumbing, and Structural, or as indicated by the director. Housing Inspector will determine which assistance the applicant may qualify for based upon initial home inspection and available funding.

Demolition of an accessory structure deemed hazardous, such as a detached garage or work shed, will be made on a case-by-case basis depending on the available budget, grant requirements, planning requirements, current building codes, and health and safety concerns. The structure will not be rebuilt by the City.

Assistance in removing any items from the property that are considered to be dangerous, hazardous, or a violation of local code is an eligible repair when performed in conjunction with the rehabilitation of eligible improvements on the property.

Assistance may not be used for the purchase or repairs of appliances or renovations not necessary to bring the home up to local code or property standards. Ineligible repairs include but are not limited to luxury and recreational items (swimming pools, spas, high end fixtures). Tree trimming will be in conjunction with repair and only if considered necessary and if allowable under the funding regulations. Any other ineligible activity may be considered if deemed necessary by the City to undertake an eligible activity, if allowable under the funding regulations, as applicable.

The types of repairs or replacement may include but is not limited to the following: Mechanical Replace/repair HVAC systems

Electrical Replace/repair electrical system and installation of ground fault circuit interrupters and may include installation of new smoke, fire, and CO2 alarms

Plumbing Replace/repair plumbing, water and sewer pipes, kitchen and bath fixtures Replace/repair gas pipes/gas testing Replace/repair water heaters

Structural Replace/repair roofing Replace/repair existing exterior cladding Structural repairs/modifications (only to correct existing structural code deficiencies or to provide accessibility to disabled persons)

Other Testing & treatment/removal of lead-based paint/asbestos hazards Handicapped improvements & removal of barriers to the handicapped Tree trimming will be in conjunction with repair and only if considered necessary and if allowable under the funding regulation.

Demolition of an accessory structure deemed hazardous, such as a detached garage or work shed, will be made on a case-by-case basis depending on the available budget, grant requirements, planning requirements, current building codes, and health and safety concerns. The structure will not be rebuilt by the city.

Any items determined eligible by the Director

Terms of Assistance

Assistance is an interest-free, forgivable, self-amortizing loan in an amount subject to the City’s assessment of needs, not to exceed $24,000.00. The City loan shall be secured by a five-year Deed of Trust (lien) and a Deed Restriction on the property, signed by Applicant as the owner of the property. No more than two people may be the owners of the home. Applicant cannot receive assistance more than one time within any given year and if they had prior assistance and are within their affordability period from any other past City of Dallas home repair programs, they may be eligible for additional service, however additional deeds of trust or deed restrictions may be filed when necessary.

Loan payments are self-amortized over the five-year loan term and forgiven annually at the rate of one-fifth of the loan amount for every year the borrower occupies the property continuously as his/her primary residence and complies with the terms and conditions of the contract. The deed restrictions and the deed of trust shall be released on the fifth anniversary of date of completion of rehabilitation activity so long as the borrower has met the conditions of the loan, as described under these program requirements, for the entire term. Failure of borrower to occupy the property continuously as their primary residence or comply with the terms and conditions of the contract for the entire term shall result in repayment of the unamortized balance of the loan.

Applicant shall be required to provide on-going proof of homeowner insurance covering the appraised value of the primary structure to the City, and any other certifications required by the City in the contract, until the balance of the loan is repaid to the City or until the full amount of the loan is forgiven.

In addition to execution of a loan agreement, execution and recordation of a deed of trust, deed restriction, and a promissory note will be required for the five-year term.

Applicant may repay the loans at any time without penalty. All loans are immediately payable upon the earlier of:

The sale, conveyance, transfer, rental, hypothecation of the security; or If the home is vacated during the term of the loan; or Failure to adhere to the provisions of the loan agreement; or If property insurance, satisfactory to the City, is not maintained on the property; or If the Applicant falls behind on the mortgage of their home; or Failure to otherwise adhere to the provisions under the City’s contract, deed restrictions, deed of trust and/or the note.

Loans are assumable only under the following limited circumstances:

Transfer of property to a surviving spouse;

Transfer of property to an heir(s);

Transfer of property where spouse becomes the sole owner of the property;

Transfer of property resulting from a decree of dissolution of marriage, legal separation or from incidental property settlement agreement; or Transfer to a Family Trust in which the borrower remains the beneficiary and occupant of property.

All transfers must be approved by the City. Any person that would like to assume the loan must income qualify and utilize the assisted property as their primary residence. If such person does

“Service First, Now!”

Connect – Collaborate – Communicate not meet the income requirements of the program, does not utilize the property as their primary residence, or does not meet any other condition of the loan, then the unamortized balance of the loan amount is due immediately and payable to the City.

Loans may only be used to complete the project-related hard costs such as construction costs.

Project-related soft costs such as hazardous materials testing fees, document recordation fees, inspection/construction management fees, escrow fees are program delivery costs of the City and shall not be included as part of the loan provided to the Applicant.

The level of assistance shall be limited to the amount required to address the rehabilitation work scope as defined by the City (except as provided below). The City Manager or designee may on a case by case basis administratively approve (without City Council approval or Council Committee approval) additional assistance not to exceed ten percent above the maximum limit for any owner-occupied rehabilitation project under the following circumstances:

To address outstanding repairs or necessary work to close out an existing project;

The need to provide reasonable accommodations in accordance with the Americans with Disabilities Act or other local, state or federal law;

Unforeseen environmental issues; and Addressing issues that threaten life, health, safety and welfare of the public.