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First Amendment to the Housing TIF Agreement with Affordable Housing Network Inc (AHNI)City of Dubuque City Council Meeting Consent Items # 07. Copyrighted April 3, 2023 ITEM TITLE: First Amendment to the Housing TI F Agreement with Affordable Housing Network Inc (AHNI) SUMMARY: City Manager recommending City Council approve the amendment to the agreement with Affordable Housing Network, I nc. for city support in the amount of $600,000 in Housing TI F funds to allow up to $60,000 per unit contribution from the City of Dubuque and reduce the number of units for performance from 20 units to 10 units. RESOLUTION Approving the First Amendment to an Agreement with Affordable Housing Network, Inc. for the rehabilitation of residential property within the City of Dubuque for resale or rental to low and moderate -income families SUGGESTED Suggested Disposition: Receive and File; Adopt Resolution(s) DISPOSITION: FIN ik[91:ILyil21zIII l+] Description Type MVM Memo City Manager Memo Staff Memo Staff Memo Resolution Resolutions Amendment to the Agreement Supporting Documentation THE C Dubuque DUjIBQTE WAWca 914 Masterpiece on the Mississippi YP pp aoo�•o 13 zai7*20*�oi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: First Amendment to the Housing TIF Agreement with Affordable Housing Network Inc (AHNI) DATE: March 23, 2023 Housing & Community Development Director Alexis Steger is recommending City Council approve the amendment to the agreement with Affordable Housing Network, Inc. for city support in the amount of $600,000 in Housing TIF funds to allow up to $60,000 per unit contribution from the City of Dubuque and reduce the number of units for performance from 20 units to 10 units. I concur with the recommendation and respectfully request Mayor and City Council approval. v Mic ael C. Van Milligen MCVM:sv Attachment CC' Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Alexis Steger, Housing & Community Development Director THE CF DUI6---B E Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: Alexis M. Steger, Housing & Community Development Director DATE: March 23, 2023 Dubuque Alf -America City 2007-2012-2013 2017*2019 RE: First Amendment to the Housing TIF Agreement with Affordable Housing Network Inc (AHNI) Background Affordable Housing Network Inc (AHNI) entered into an agreement with the City of Dubuque for $600,000 in Housing TIF Funds to assist with rehabilitation costs associated with completing neighborhood revitalization efforts under the CHANGE initiative. This funding would originally help support the rehabilitation of 20 units, for a contribution of $30,000 per unit, with the goal of providing affordable homeownership opportunities. Discussion AHNI is a well -established non-profit that partners with Four Oaks and works towards revitalizing neighborhoods. They have significant presence in Cedar Rapids, where they took on a large neighborhood revitalization effort in Wellington Heights. Not only do they provide the resources for rehabilitation of dilapidated homes, but they provide wrap- around services for those residing in the homes. The City of Dubuque committed to transforming, through rehabilitation, 120 housing units for homeownership under the CHANGE initiative. Currently, the city has partnered with Community Housing Initiatives, Inc (CHI) and True North to complete 70 housing units, and the City has rehabbed several more partnering with the HEART program. The agreement with AHNI provided an additional 20 units to be completed over five years. The first year of funding is was requested from CDBG, and the next four years were funded through Housing TIF as part of the original agreement. Costs of rehabilitation have raised considerably through many economic factors such as COVID and a lack of contractor availability, as well as inflation. The City of Dubuque is experiencing a loss of $60,000 to $75,000 per dilapidated single-family home rehabilitated for low -moderate income homeownership. AHNI is experiencing the same gap between rehabilitation costs and sell price of a home under the original agreement with the City of Dubuque. AHNI consulted with the Housing and Community Development Department to see if there were cost savings ideas the city has implemented to decrease the gap in funding. Finding none, the Housing and Community Development Department is recommending a change to the original agreement, increasing the amount contributed by the City through Housing TIF from $30,000 to $60,000 per unit. This would also decrease the number of units that could be completed from 20 units to 10 units. All units that are rehabilitated through this agreement are still required to be sold to a low/moderate income resident for homeownership at 80% area median income or less. AHNI is unique in their approach to providing supports to neighborhoods and low/moderate income residents and is able to offer a responsible rent -to -own model. This model provides credit counseling and other wrap around services for the maintenance of the home, to help increase the chances of homeownership for a resident not otherwise eligible for a traditional loan. This supports the CHANGE program goals of increasing homeownership for residents who have been marginalized or had significant hardships that prevent homeownership opportunities. Action Requested I respectfully request the City Council approve the amendment to the agreement with Affordable Housing Network, Inc. for city support in the amount of $600,000 in Housing TIF funds to allow up to $60,000 per unit contribution from the City of Dubuque and reduce the number of units for performance from 20 units to 10 units. Prepared by Alexis Steger, Housing & Community Devel., 350 W. 61 St., Suite 312 (563) 690-6072 Return to Adrienne N. Breitfelder, City Clerk, 50 W. 1311 St., Dubuque, IA 52001, (563) 589-4100 RESOLUTION NO. 82-23 APPROVING THE FIRST AMENDMENT TO AN AGREEMENT WITH AFFORDABLE HOUSING NETWORK, INC. FOR THE REHABILITATION OF RESIDENTIAL PROPERTY WITHIN THE CITY OF DUBUQUE FOR RESALE OR RENTAL TO LOW AND MODERATE -INCOME FAMILIES WHEREAS, the City of Dubuque ("City") and Affordable Housing Network, Inc. ("AHNI") are parties to an Agreement (the Agreement) dated for reference purposes the 3rd day of June, 2019; and WHEREAS, the parties now desire to amend the agreement. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA, AS FOLLOWS: Section 1. The First Amendment to the Agreement is hereby approved. Section 2. The City Manager is hereby authorized and directed to execute such Amended Agreement on behalf of the City of Dubuque, Iowa. Section 3. The City Council grants the authority to the City Manager or the City Manager's designee to manage the agreement and act in accordance with the terms of the agreement. Passed, approved and adopted this 3rd day of April, 2023. Brad��� Attest: Adrienne N. Breitfelder, City Clerk FIRST AMENDMENT TO AGREEMENT BETWEEN THE CITY OF DUBUQUE AND AFFORDABLE HOUSING NETWORK, INC. This FIRST AMENDMENT TO THE AGREEMENT is dated for reference purposes the 31d day of April, 2023. Whereas, the City of Dubuque ("City") and Affordable Housing Network, Inc. ("AHNI") are parties to an Agreement (the Agreement) dated for reference purposes the 3rd day of June, 2019; and Whereas, the parties now desire to amend the agreement as set forth herein: 1. Section 1 is amended to read as follows: Funding. AHNI agrees to provide resources directly or through third parties to finance the Project above the committed City funds provided under this Agreement. AHNI agrees to actively seek and identify additional funding sources and/or grants in furtherance of the goals of this Agreement. The City agrees to invest with AHNI the sum of $600,000 funded with Housing Tax Increment Financing funds dedicated to low and moderate -income family housing assistance. The City funding shall be provided via payments to be used for the acquisition and rehabilitation costs for each unit so that AHNI does not experience a financial loss. The City funding will be provided to AHNI over a five (5) year period as outlined in the attached Exhibit "A" which is incorporated herein by this reference and is also subject to inclusion in the adopted City budget over the Term of this Agreement. The City funding shall be in the form of payments toward the rehabilitation costs of each unit up to, but not more than $60,000, and in no event to exceed the total rehabilitation cost per unit. AHNI may begin accessing the City funds upon acquisition of each property. Funding requests to the City shall be in writing and shall include supporting documentation regarding the property acquisition. The City shall not have a lien on the properties as a result of the funding and shall not record any documents encumbering title to the properties as a result of the funding hereunder except for the owner -occupied restrictive covenants referenced below when applicable and the second mortgages for income - qualified purchases referenced below when applicable. The number of properties to be completed per year in the Project is dependent on funds available from the City Housing Tax Increment Financing Districts and may be adjusted on an annual basis with six monthswritten notice from the City to AHNI before the beginning of each fiscal year. Upon the sale of residential properties completed for the Project under this Agreement, the sale proceeds will be distributed to AHNI for the satisfaction of any related AHNI loans or obligations and to be used for the acquisition, rehabilitation, and resale and/or property management of additional properties, used for the creation of a contingency reserve, or for such other uses as approved by the AHNI Board of Directors and consistent with its mission. Upon lease of properties completed for the Project and to be managed by AHNI as property manager, the rents shall be retained by AHNI to be used for the same purposes as proceeds from the sale of properties completed for the Project. 2. Section 2 is amended to read as follows: Scope of Work. AHNI Obligations Conditioned upon receipt of funds from the City, AHNI agrees to acquire, rehabilitate and either sell or property manage up to ten (10) total residential units during the Term of this Agreement (hereafter the "Minimum Improvements"). The Minimum Improvements will be made in accordance with the City of Dubuque Rehabilitation Standards attached hereto as Exhibit "B" and incorporated herein by this reference (the "Standards"), unless an exception to the Standards is approved in writing by the City of Dubuque Housing & Community Development Director or designee. Changes to the Project goals, scope of services, schedule or budget, unless otherwise noted, may only be made through a written amendment to this Agreement, executed by the City and AHNI. AHNI will administer all tasks in connection with the aforesaid Project in compliance with all applicable Federal, state, and local rules and regulations governing these funds, and in a manner satisfactory to the City. For purposes of this Agreement, a residential unit can be located within a single-family structure or a multi -unit structure. Each unit within a multi -unit structure, such as a duplex for example, shall constitute a residential unit for purposes of this Agreement. Acquisition of up to ten (10) total residential units shall be completed by the end of the Term of this Agreement, and additional non-residential units may be completed under this Agreement with written approval of the City. AHNI agrees to maintain the properties while AHNI is the owner of such properties, including properties held for sale and properties to be managed by AHNI, with such maintenance to include but not be limited to lawn care, snow removal, general maintenance, and keeping the properties clean during rehabilitation or construction. AHNI will maintain insurance in accordance with the provisions of this Agreement and as specified in Section 4 of this Agreement. AHNI agrees to maintain accurate records that include detailed costs associated with the Project and Minimum Improvements, the proceeds received from the sale of each residential unit, and the documentation supporting the income qualifications of those who purchase or rent from AHNI. AHNI shall make such records available to the City upon request. AHNI will determine the sale price and rental rates of residential units using factors such as the costs incurred by AHNI, the appraised value of the rehabilitated residential units, and the market rate of similar residential units. When City Housing Tax Increment Financing funds are applied to the acquisition, rehabilitation or sale of a residential unit, or rental of a unit, the rental or sale of the unit shall be subject to an income restriction requiring that the purchaser or tenant be at or below 80% of the area median income at the time of closing on the purchase of the unit or initiation of the tenancy. AHNI will conduct sufficient advertisement of the housing rehabilitation program and other forms of outreach to ensure that enough eligible purchasers or applicants from the designated target neighborhood(s) of participate in the program to meet Housing TIF housing rehabilitation goal of 10 completed units. Properties sold as part of the Project will be subject to a recorded 21-year owner occupied restrictive covenant in substantially the form attached hereto as Exhibit "C" which is incorporated herein by this reference. Citv Obligations Funding obligations as outlined in Section 1. The City agrees to have an Inspector and Supervisor perform final property inspections with AHNI to confirm completion of rehabilitation or construction and compliance with rehabilitation standards. The City agrees to loan to income qualifying purchasers 20% of the purchase price for a down payment (not to exceed $25,000) as a second mortgage with a repayment schedule of zero payments at zero interest, with the balance due upon sale by the purchaser or the purchaser's heirs, successors or assigns. The Agreement remains in full force and Effect, unmodified except as specifically stated herein CITY OF ©UBUQUE, IOWA OR 7LEHOUSING NETWORK, INC. y• B r f s i UVL Micha l C. Van Milligen, 6ty Manager EXHIBIT B 10 rnnrrnpr Uiibngaio � FTdilsing�ndCoirunniiily � � t)o�el�ialarud IJy qB E �, iloassinR gehRbllllntlonYrogrnm V mo W fil hira-d 4ulle?i12 Mdxir9piereanlirr.Mis.issippi In041119 �neion00war° DNbtIgiW,L152001 0liic6(5G3) 589=4239 Ll OITYOF DUBU'QUE HOUSING, REHABILITATION STANDARDS rb Cra ted y186Yr Rorer Beni, RahabllilaUon Prugiains InsPddor 3nJW8 Neyan, Rohabllifatlon NrdBrdmrSupanlsur. �1 TABLE OF CONTENTS REHABILITATION STANDARDS 1. GENERAL MaterialslProducts Workmanship Manufacturers Warrantles Qualified Staff, Inspectors, and Contractors 2, SITE WORK Landscaping 3. FOUNDATION Basements and Crawl Spaces, Moisture and Leaks 4. WOOD FRAMING Non•Formaidohyde Manufactured Wood Products Wall framing studs Wood Structural components: Beams, Columns, Posts, Plywobd Termite Treatment 5. EXTERIOR WALLS Exterior Sheathing Wall Insulation, Replacement Windows Exterior Doors Door & Window Sealing Low -Maintenance Vinyl Siding Exterior Trim Exterior Paint, Stain, Varnish Masonry and Veneer Fiber Cement Board Siding Stucoo 6. ROOF Roof accessories, Roof Structure, Asphalt Shingles, Roof Sheathing Ice and water protectlowmembrane Flashing Gutters and Downspouts Roof Repairs and Leaks 7. PLUMBING PI'umbing Fixtures Water Heaters On Demand Water Heaters, Shower and Tub Drains S. ELECTRICAL Outlets/Switches. GFI Outlets Light Sockets fl. INTERIOR CLIMATE CONTROLIHVAC Furnaces, Thermostats Oil Storage Tanks Air Infiltration and Drafts 10, INTERIOR Interior Doors KitchonfBath Cabinets Counter Tops Laminates Gypsum Wallboard Ceramic Tile Paint, Stain, and Varnish 12 Nontoxic Paint Strippers Wallpaper and Vinyl Wall Coverings Lath and Plaster Interior Stairs 11, FLOOR FINISHES Subliming, Carpeting, Wood Flooring Roll Vinyl and Resilient The Flooring Hard -surface Flooring '12. MISCELLANEOUS Driveways and Sidewalks Exterior Wood PorobeslDockslStairs: Conorete Stoops and Steps 13, ENVIRONMENTALIHAZARDOUS MATERIALS Lead based Paint Asbestos Radon Others APPENgENCIES; A, List of Stale and Looai Building Codes 13 INTRODUCTION The tollowingstandards are requlto for all Rehabllltatlon Protects, unlass othe wise noted In the Rahab Scops of Work; All materials and fixtures used In Rehabilitation shall be of middlne cost and quality. The Residential Rehabilitation Standards are not Intended to reduce or circumvent the requirements of law and current applicable Building Codes/ IPMC code standards. All construction means, and methods shall be performed In compliance with Federal Occupational Safety and Health Agency (OSHA) regulations. Code violations, building & site defects that are health, safety and life threatening are priorities. 14 RESIDENTIAL REHABILITATION STANDARDS Rehabilitation Standards Inolude: Federal Minimum Rehabilitation Standards: 24 CFR Vill, 882,109 Housing Quality Standards Written Trade, Manufacturer's Specllicalions, Standards, Recommendatlonsond Installation Instructions All applicable Federal, Slate & Local code requirements. 1. GENERAL MaterialsfProducts shall be new, In good condition, and of the grade required by the work write-up or specifications unless otherwise agreed to In writing. Materials damaged In shipment or prior to owner's acceptance shall be replaced at the contractor's expense. Deliver, store and handle products using means and methods that will prevent damage and deterioration from moisture, rain, dirt and other harmful Influences Including loss and theft. Workmanship shall be in accordance with the trades standards. City Rehab staff shall ensure that the mechanical execution of the rehabilitation work Is performed In a manner consistent with principles of quality workmanship, the material manufacturer's Installation Instructions, and all codes that apply. Manufacturers warranties shall be In addition to the General Contractor warranty and do not relieve the Contractor of stipulated obligations or requirements. All work must be performed, Installed in accordance to warranty stipulations, and the requirements for coverage. Iowa Law requires that all Contractors warranty their work for 1 calendar year after the date of completion. Qualified Staff, Inspectors, and Contractors are the responsibility of The City of Dubuque Rehabilitation Staff, The City of Dubuque Rehabilitation Staff shall ensure that all persons Involved In a rehabilitation project shall be qualified for their tasks. If the nature of the work requires personnel to be licensed or otherwise certified to perform the work, The City of Dubuque Rehabilitation Staff shall ensure that the personnel meet the requirements. All qualified Rehab Contractors shall be registered with Dunn and Bradstreet, and provide the registration number to Rehab Staff. Qualified Rehab Contractors MAY NOT be listed as under debarment on the SAM.GOV website, 2. EXTERIOR SITE WORK All proposed site wont must keep vaster away from fhe building foundation. It must promote positive drainage away Irom lho homo and any noighboring strucluros. It must not Presto erosion, soil contamination or damage to the owners property or neighboring properties. Any damage to Ilia site or a neighboring site due to the performance of the specified site work must be repaired. Landscaping Plantings, trees, shrubs etc, that are a safety hazard shall be removed. Lawn areas affected by the removal shall be restored. 15 3, FOUNDATION Foundations must be stable. Footings shall be concrete, with waterproof concrete foundation walls and slabs, when required by state/local code for new construction, reconstruction and/or repair. Basements and Crawl Spaces Moisture and Lealue The source of water Infiltration should be Identified end corrected before repairs are completed. Roof water, clogged downspouts, landscape grading, Insufficient foundation drainage, poor Inadequate design etc, are all common causes of basement and crawl• space molslure. Repairs should Improve health & safety in basement and crawl spaces. 4, WOODFRAMINa All existing structural components must be soundistable and in serviceable condition for the expected useful life of the rehabilitation work to be performed (15 years), Unstable, cracked, leaning, buckling, and/or shifting exterior walls shall be restored as per code and are priorities, All wood studs, foundation posts, sills, girders end plates showing signs of rot, docay, and structural failure must be replaced, There should be no holes, separation, collapsing or severely deteriorating walls or siding materials, Non•Formaldehydo Manufactured Wood Products Due to concerns about post -installation formaldehyde emissions, wood products containing Urea Formaldehyde (UF) rosin binders should not be used. Wall framing studs Interior and exterior -shall be Installed on 12", 18" or 24" centers, or as required by structural conditions. Wood Structural Components; Boams, Columns, and Posts Checl<code roqulrements and use yualifled professionals for documents and spec(ficatiotts for repalrs, Including replacements or adjustments to load bearing components. For major structural damage, a structural analysis must be completed by a licensed and Insured. structural engineer, Plywood Plywood shall be trademark stamped. Interior Always use Interior grade plywood for Interior work, as specified by manufacturers. EMader Always use exterior grade plywood for exterior work as specified by manufacturers. StrMr. iraVconstructIon Always use construction grade plywood for structural work. Construction grade plywood is stamped C•D or CDX. Termite Treatment Infestatlon shall be eliminated by treating in accordance with the requirements of a certified exterminator, Refer to the Exterminator's warranty for service or further damages after treatment. 5. EXTERIOR WALLS Exlerler walls are to comply with all codes that apply. They Hood to be wgather•tight, structurally sound,. energy efficient end shall not permit entry of insects, water, snout or wind Into the krtorlor. 16 Exterior Sheathing Sheathing shall be a nail -able wood product, with a minimum thickness of %". Air Infiltration barriers, such as building paper, or house wrap designed to protect the wall from water moving past the exterior siding, shall be used at the exterior of the wall sheathing. (See 4 Plywood) Wall Insulation Installation of all insulation shall be performed with the utmost care, with the highest standard of professional workmanship, In stridt compliance with manufacturers specifications and (nslallation Instructions, Example: kraft paper faced Insulation shall be stapled as required, covering all gaps and penetrations In the wall cavity, Use plastic vapor barrier when required by code. Replacement Windows Use energy star rated, Low E•glass replacement windows that conform to all Building Code requirements, Including those for safety glazing and emergency egress, The window Installation and installers must also be as Indicated by the manufacturer. Select replacement windows with a 10•year minimum warranty. When possible, use now construction windows with some rating, Exterior Doors Remove and replace doors and frames that are warped, bowed or othowse damaged. Manufacturers warrontee must be a minimum of 5 years. Use energy star labeled door.. Thresholds shall be sealed to the subfloor. Sides and tops of doors shall be provided with weather -stripping. All hardware shall be installed with the required screws, bolts, and fasteners as provided by the manufacturer and packaged with the hardware. Select only steel doors for exteriors. Always Install exterior storm doors for additional thermal and moisture protection. All new unpainted entry doors must be painted with 2 coats, or to cover, whichever is required to complete the painting In a workmanlike manner. Door & Windowsealing The shim space between the framing for windows or doors (Including attic access), rough openings, and the Installed doors and windows shall be sealed with non -expanding spray Foam sealant, closed cell foam backer rod, spray applied insulation, or other suitable Insulations. Cellulose, fiberglass or rock wool ball Insulation Is not acceptable as an insulation, but can be used as a backing for a sealant (such as caulk). Thresholds for exterior doors shall be sealed to the subtloor. Low -Maintenance Vinyl Siding The City of Dubuque Rehabilitation Department requires use of "trlple-3" vinyl siding unless otherwise specified In the scope of work. The City of Dubuque Rehabilitation Department Always uses SHPO (State Historical Preservation Office) guidance on deciding the profile shape of replacement vinyl siding. The System must accommodate positive drainage to exterior for moisture entering the panel system, or condensation within the panel system. Comply with manufacturers written installation Instmctlons, There shall be a 20 Year material and labor warranty from the date of completion. EMating Vinyl Siding Repairs: Always chack for hazardous materials. Locate and repair the cause of the siding damage, Repair In accordance with manufacturers standards. Check for warranty coverage. 17 Exterior Trlm Low -maintenance trim materials such as vinyl, cellular PVC, or pre -finished cement boards may be used. All exterior wood trim shall be solid wood free from knots, defects and warping. Exterior Paint, Stain, Varnish Low-VOC (Volatile Organic Compounds) paints, stains and varnishes use water as a carrier Instead of petroleum- based solvents. As such, the levels of harmful emissions are lower than solvent -borne surface coatings, These certified coatings also contain no (or very low levels of) heavy metals and formaldehyde. Paint shall be delivered to the site in original containers labeled by the manufacturer, with seals unbroken. If the exterior Is stained wood, the finish shall be a solid -body stain, not the transparent or semilransparent typo. Exterior siding: Apply 2 coats of solid -body stain over pre -primed siding. Exterior Trim: Apply 1coat of primer, and 2 coats seml-gloss paint. Masonry and Veneer Repair, repaint, and clean all masonry and stone In compliance with Masonry Trade Standards and Brick Industry Association recommendations, Flbar Cement Board Siding For existing Fiber Cement siding, test for asbestos before repairs. (See appendix G Asbestos) Loonto and repair cause of siding damage. Repair in accordance with manufacturer's instructions. Check for warranty coverage. Warranties can be up to 50 years. The City of Dubuque. Rehabilitation Department Always uses SHPO (State Historical Preservation Office) guidance on deciding the profile shape of replacement siding. Stucco For Historic homes, use SHPO guidelines for repair, Locate and repair the cause of stucco damage. Use an experienced professional stucco repair person. Please note that there is Portland cement, as wall as lime•based.stucco. Repairsshould be In accordance with stucco type. OF w DO NOT USE metal roofing Problems such as evidence of severe deterioration (e.g. curled/cracked asphalt shingles, severely corroded metal or moss growth), missing, None, Ineffective, or Inappropriate materials shall be corrocted, Provide materlals.complying with governing regulations. Replace all roofing that Is older than 15 years of aga, Comply with published recommendations of shingle manufacturer details and Rocommendatlons of NRCA Roofing Manual for Installation of undorlayment and shingles, using the correct number of nails and courses of shingles, In accordance with manufacturer's standards. Roof accessories 6icluding valley flashing and flashing against walls, chimneys, stacks and pipes shall be watertight, durable, and free from excessive wear, obvious defects In materials, and workmanship. Roof Structure (see #4 Wcod Framing) Asphalt Shingles Provide asphalt fiberglass shingles on sloped roofs Install Architectural, mullklab, mineral surfaced, self-sealing, fiberglass asphalt shingles With a 30,year warranty. Install according to manufacturer's written Instructions. If there are 2 or more layers of shingles, remove all before roofing again. Roof Sheathing (see #4 Structural Plywood) As per manufacturers specifications. Ice and water protection membrane Where roof slopes are less than a 4/12 pitch, and at all valleys, roof penetrations, eaves, Intersections of walls and roofs, hips, and Wherever else required by Job conditions as per manuraclurors recommendations. Flashing Provide pre -finished aluminum drip edge flashing at roof eaves and rakes, roof to Chimney/walgskyllght connections, and other horizontal roof material transitions, fastened with appropriate nails. Gutters and Downspouts Rein from the roof gutter system shall be directed via downspouts in a way that water is discharged away from the foundation. The minimum thickness for aluminum gutters shall be 0.03211, and OA27" for aluminum flashing material. Roof Repairs and Leeks Check all roof affected components Including eaves and roof penetrations. Repairs should match existing roof surfaces and finishes, Locate and repair any Interior damages caused by leaking roofs. PLUMBING All service, distribution, return pipes, connectors, and accessories for fixtures, and heating systems shell function properly, shall not leak, and shall be properly Insulated. Systems Including sewers shall operate free of fouling and clogging, and not have cross connections, or back siphoning between fixtures. Waste lines shall be tied -in to an approved sewer system, Any part of the dwelling which must be changed or replaced shell be left In a safe structural condition in accordance with applicable codes. Plumbing Fixtures Equipment and material shall comply with end be Installed In accordance with current plumbing code, manufacturers & trade specifications, standards. All vents protruding through the roof shall be properly flashed. Valves shall be provided at each fixture or each piece of equipment. Unions shall be provided to permit removal of equipment without cutting pipe Water Heaters Shall meet requirements of the State Code and have an Energy Star label, The type (gas or electric) and capacity will be given on the work write-up, or replacement will be with size and type required by number of bedrooms and baths. A 10- year minimum warranty is required. Water -heaters older than 10 years of age will be replaced with a minfinum 40- gallon unit. Tankloss/On Demand Water Heaters Use Energy Star -qualified tank -less water heaters to conserve healing time and energy use If 19 practicalI The dev(ce should have avariable-sot thermostat and be appropriately sized Shower and Tub Drain Plumbing penetrations shall be blocked with air -Impermeable insulation and sealed at the edges with proper sealant. Rookwool, or equivalent products, shall not be used. S, ELECTRICAL All electrical connections, service entrance, Interlor/exterlor servloe/breaker boxes, shall be assessed prior to proposed electrical work, All nonfunctional outlets, light fixtures and switches must be Inspected, corrected and or replaced, All potential fire and safety hazards must be addressed. Existing electrical wiring, fixtures and receptacles that are hazardous shall be repaired/replaced. Condition of existing wiring and equipment: Existing wiring and equipment shall be in proper operating condition; free of taped splices, loose connections, missing insulation, short circuits or unapproved grounds, Service conductors shall not be frayed, worn or bare. The changes being made to the house during rehabilitation must be considered when sizing the electrical system for upgrade/code compliance. Outlets/ Switches Cover plates must completely cover the hole In the wall and be of a matching style and color. Receptacles and switches must be flush with the cover plate and secured in the )unction box. All 3-prong outlets shall have an attached ground wire that I$ connected at the ground buss In the electrical panel. GFCI Outlets All outlets near water sources must be GFCI (Ground Fault Circuit interrupting) outlets, Electric outlets that are not In compliance with code requirements must be replaced. All GFCI outlets must be correctly wired per the Electrical Code and the manufacturers specillcalions. Light Sockets Replace all damaged, loose, Improperly functioning light sockets. Inspect existing wiring and replace all damaged or frayed wiring. The socket trim and trim- ring, or escutcheon, must completely cover the hole. 9. INTERIOR CLIMATE CONTROL / HVAC All furnaces 15 years or older will be replaced. Inspect for leaks, thermostat function, filters, structural soundness, deterioration, clearances, ventllallon, corrosion eto. Chock all boilers for safely devices. The distribution system shall be appropriate for the type of heating equipment to which It Is connected. Install In accordance with manufacturer's printed installation Instructions. The replacement heating equipment shall be a proper fit In size to any other existing portions of the system, Le. fuel lines carrying the appropriate quantity, type, and pressure of fuel; air distribution and return systems carrying the appropriate cfm's to each location; air conditioning equipment rated to match the furnace; properly sized electrical circuits and equipment, eto. Where the other equipment Is Improperly sized to fit the newequlpment, It shall also be replaced or modified so that there is a proper fit. 20 Furnaces All furnaces must be fated at 90%or higher efficiency. All central air equipment attached to a furnace shall have a SEER rating (Seasonal Energy Efflolency Ratio) of no less than 145. Energy Star qualified furnaces shall have variable•speed blowers and programmable thermostats. All furnaces shall bear all applicable UL- listed and AGA, certified labels, For hot water systems, provide Energy Star certified boilers. Minimum furnace warranty must be 15 years under normal use and maintenance, all other components shall carry a 5•year warranty. Thermostats Provide all heatinglcooling systems with Energy Star qualified programmable thermostats, Dwelling thermostats shall be placed on an Interior wall, at 48" above the finished floor, away from the direct flow of forced air and drafts, Oil Storage Tanks If a healing system Is being replaced or repaired, then the oil tanks must be Inspected for proper operation, and to ensure that there are no leaks. Contact a licensed HVAC expert, Air Infiltration and Drafts Heating work, and new systern?urnece Installation for homes must Include woatherization, draft, and heat loss improvements, 10, INTERIOR Smoke Detectors All residential dwellings must have smoke detectors properly placed and Installed. Use only new Dual•Sensorsmoke alarms. Install per the directions of the Included handout on smoke alarm placement. Interior Doors Repairs oar ba attempted on minor cracks and punctures only; otherwise, new pre -hung dcore will be installed, Door finish to match existing dwelling doors. Kitchenl Bath Cabinets Unsafe, unsanitary, or nonfunciloning cabfnotry shall be replaced. Verify access and clearance required for the installation of each cabinet. At all cabinet locations, coordinate the Installatlon of convenience outlets, equipment, lighting fixtures, plumbing, and HVAC vents, to. Installation must be plumb, level and true. Install any required blocking in the walls to recalve fasteners. Field verify all dimensions and clearances and minimize filler places at the ends of cabinet runs. Install materials In accordance with manufacturer's Instructions and approved submittals, Install materials In proper relation with adjacent construction and With uniform appoarance, Anchor securely In place, and coordinate with countertop Installation, Adjust and lubricate hardware. Restore damaged finishes and test for proper operation, Always Install knobs and pull on all drawers and cabinet doors unless these fixtures have them built In. Counter Tops Countertops showing evidence of wear, water damage, uplifting surface materlals.etc, should be replaced. Counter tops shall not have sharp exposed corners. Corners protruding more than 1•t12" shall be rounded or chamfered, Use only high-deflnillon laminate countertops 21 laminates Shelf, cabinet and countertop substrate material for plastic laminate shall be exterior" type, hardwood -faced plywood, or other material approved by the manufacturer of the plastic laminate. Cut-out edges shall be sealed prior to the Installation of sinks. Protect walls with back and side splashes: q" minimum at bathroom vanity tops and 6" minimum at kitchen countertops. Use only high -definition laminate countedops. Gypsum Wallboard (Drywall) The cause of warped, damaged, discolored (water) or deteriorating ceilings and walls must be determined before the wall or ceiling Is repaired, The problem that caused the wall or ceiling damage must be repaired to ensure the problem doesn't reoccur in the some area or causes problems In another area of the wall, coiling or dwelling, Gypsum board panels should be manufactured In the United States and labeled "made In the U,S,A." with the manufacturers name and mamrfacturing site location, shall be provided. ceiling Use 1/2" (min) gypsum wall board or manulacturer's recommendations shall be followed In specifying calling drywall adequate for supporting the weight of specified attic Insulation. Interior Partitions Uso 1/2" (min.) gypsum wall board on all Interior partillons unless otherwise required Wet/Molsture areas Use 1/2" (min.) mold -resistant gypsum wall board, at bathrooms, Idtchons, and wherever wall Is Is Indicated (except within tub or shower enclosures), 8xterior Walls Uso 1/2" (min.) gypsum sheathing board panels at exterior valis and ceilings where required, surfaced whit water-repellent paper on front, back, and long edges. Ceramio Tile Repairs to ceramic the on wall and floor finish comply with manufacturer's Instructions and recommendations, Paint, Stain, and Varnish Low-VOC water -based paints, stains, varnishes, and other wood finishes use water as a carrier Instead of petroleum -based solvents. As such, the levels of harmful emissions are lower than solvent -borne surface coatings. These certified coatings also contain no heavy metals or formaldehyde Paint shall be delivered to the site In original containers, labeled by themanufacturer, with seals unbroken. Interior Partitions & Walls Apply lcoat primer, and 2 coals satin or eggshell latex paint. Interior Ceilings Apply lcoat primer, and 2 coats flat Iatex�palnt, Interior Trim/Painted Woodwork Apply 1 coat primer, and 2 coats semi -gloss latex paint. 22 Lathe and Plaster Locate and repair the cause of the damage. Repairs should be done by a contractor with lathe and plaster experience. Interior stairs as #4 Wood Framing 11. FLODR FINISHES Damaged, or deteriorating floors shall be repaired or replaced. Subgooring Shall be according to finish flooring manufacturers specifications. Interior floor sheathing shall be 1/e" (min.) thick, (See #4 Plywood) Carpeting Do not Install carpets In basements, entryways, laundry rooms, bathrooms or kitchens. All carpet and pad shall be shall be certified low-VOC. Wood Flooring Floors with splits, cracks, holes, deterioration, warped planks shall be replaced. Replacement planks to match existing as closely as possible. Any holes In wood floors that are being refinished must be filled with mulching wood. Roll Vinyl and Resilient Tile Flooring Reslllent flooring or vinyl file Is acceptable for use in kitchens, bathrooms, laundry areas (except In basements) and storage rooms. Resilient flooring shall have a minimum thickness of 10 mils. Wall base trim shall be used in all habitable spaces. Hard Surface Flooring (ceramic tile, etc.) All repairs are to be In accordance with Industry trade standards. All products must be mWgrade In cost and quality. 12. MISCELLANEOUS Driveways and sidewalks Drives, walks shall comply with local Planning and Zoning requirements, state code. Paved surfaces adjacent to the foundation shall not slope towards the structure. Repair of paved surfaces shall be minimal in cost and incidental to the rehabilitation of the dwelling, Exterior wood Porches/Decks/Stairs All unsafe or unsound porches and stairs should be replaced with treated wood and treated/painted/ with a finish coat to protect from deterioration by weather. Concrete Stoops and Steps Repair damaged, deteriorating, broken, chipped stoops and stairs. For removal & repair, follow industry standards and guidelines. New stairs and stoops shall be In compliance with building codes. Provide all applicable handrails and railings. Doorbells Install doorbells on all Rehab Jobs. Address numbers Install address number plates on the house prior to completion of rehab work. Must be highly visible From the street per fire code. Mailboxes Install a U.S. Mall Service -approved Mailbox In a highly visible area on the exterior of the house prior to completion of rehab work. 23 13. ENVIRONMENTALIHAZARDOUSMATERIALS The Housing Rehabilitation Program, must complywith fedoras environmental review regulations 124 CFR Part 58 • Environmental Review Procedures for Entities Assuming MUD Environmental Responsibilities) established by the National Environmental Policy Act of 1969 (NEPA). Lead based Paint (See attached lead paint pamphlet) Current Federal, State & Local Laws & Regulations shall be adhered to in dealing with Lead Based Paint Asbestos Current Federal, State & Local Laws & Regulations shall be adhered to, Including: U.S. Environmental Protection Agency regulations & forms 2. Slate of Iowa (IOSH) Services Regulations Standards For Asbestos Abatement Radon If property Is In a radon prone area test and comply with all current U.S. Environmental Protection Agency guidelines. Radon testing will be required on all Rehabilitation projects. All Radon reading results In excess of 4 if our as per filter (pCBL) are considered to be a high level for Radon Gas and must be dealt vrith using a Radon mitigation system. A Radon mitigation system will be Included In the Rehab scope of work If the results of testing exceed 4 pCl/L. 24 Residential Rehabilitation Standards Appendix A Gurrent Godes and Gonditions Current Adopted Codes• Copies are available for viewing at the Carnegie -Stout Public Library ,300 W 11ih St, Dubuque, IA 52001, 563•SIIO.4225 -2016 Uitemauonai Property Maintenance Code (IPMC) - 2016 International Residential Code (IRC) 2016 International Existing Building Code (IEBC) -2017 International Plumbing Code (IPC) •20171nternational Mechanical Code(IMC) • 2016 International Fuel Gas Code (IFGC) -2017 National Electrical Code (NEC) 25 EXHIBIT C 26 RE5TRICTIVE COVENANTS FOR RESIDENTIAL REAL ESTATE KNOW ALL PERSONS BY THERE PRESENT that (PROPERTY OWNER NAMES! (Owner), the owners of the following premises situated In the City of Dubuque, Iowa: (INSERT LEGAL DESCRIPTION OF PROPERTY) (Real Estate) does hereby establish and place the following restrictive covenants on the Real Estate: 1. The Real Estate shall be known and described as residential Real Estate, and may not be Improved, used or occupied for other than one (1) private single-family residential use. The Real Estate and any part thereof must be owner occupied, Rental of the Real Estate is not allowed, No portion of the Real Estate oan be rented, 2. The Owner has the right to enforce, by any proceedings In law or In equity, all restrictions, conditions and covenants now or hereafter Imposed by the provisions of these restrictive covenants. 3. These covenants shall be flied for record in the office of the Dubuque County Recorder and all covenants, agreements, promises and representations herein stated shall be deemed to be covenants funning with the Real Estate and shall endure and he binding on the parties hereto, their mortgagees, Ilenholders, successors and assigns, for a period of twenty-one (21) years from the date of the recording of these covenants, The property owner has the right to renew these covenants for successive twenty-one (21) year periods, 4. Invalidation of any of these covenants by Judgment or court order shall in no way affect any of the other provisions, which shall remain in full force and effect, 6, The waiver of any violation or failure to enforce any such restrictions, easements, and covenants shall not in any event operate as a waiver, Impairment or abrogation of same, or the right to enforce the same In the event of any future or other breach of the same of any other restriction, easement, rule or covenant, by the same or any other person. 8. These restrictions, easements, rules and covenants shall be construed under and In accordance with the laws of the Slate of Iowa, The foregoing provisions encumber the Real Estate described as: (INSERT LEGAL DESCRIPTION OF PROPERTY) Executed by the respective signatories effective the date first above written, 27 PROPERTY OWNER 1 PROPERTY OWNER 2 ATTEST: On this day of 20t before me, a Notary Publlo in and for said state, personally appeared fPROPERTY OWNER NAMES) known to me to be the person(s) named In and Who executed the foregoing Instrument, and acknowledged that they executed the same as their voluntary act and deed. Notary Public in the State of Iowa My Commission expires 28