#6 HIP Program Application Appeal
NEIGHBORHOOD SERVICES MEMORANDUM
November 13, 2009
TO: Community Development Authority
FROM: Carrie Clark, Housing Financial & Rehabilitation Specialist
SUBJECT: Agenda Item #6 - Request from Home Improvement Program Applicant To Appeal
Denial of Loan Application
Executive Summary
Neighborhood Services has received a request from a Home Improvement Program (HIP) applicant that
the CDA reconsider staff’s decision to deny their application for funding. Staff had initially denied the
application as the proposed scope of the project is inconsistent with Home Improvement Program goals.
The goal of the Home Improvement Program is to improve housing lacking basic decent, safe and
sanitary conditions or substandard housing. To help define that standard, the Department of Housing
and Urban Development (HUD) has developed a set of property condition criteria, or minimum housing
quality standards (HQS) to characterize the condition of the property.
Staff reviewed the appeal and maintains the opinion that the project is inconsistent with HIP Program
goals, as outlined in the HIP manual. Staff recommends that the CDA deny the appeal. The following
memo will outline the nature of the request and the HIP Program manual guidelines which formed the
basis for this decision.
Background
An application to the Home Improvement Program was received by an applicant residing at 302 S.
Randall Avenue. The applicant is requesting funding to remove a tree(s) in the front yard of the
property because he feels they present a safety concern. This applicant meets the income-eligibility and
equity requirements of the Program that would generally allow participation in the Program. However,
staff denied the application because the proposed work, tree-removal, is inconsistent with Program
goals.
This applicant received funding in the amount of $15,000 from the Home Improvement Program in 1998
to assist with making improvements to the property including: roofing, siding, and attic insulation. At
that time, the property met minimum housing quality standards and was considered decent, safe and
sanitary. No other repairs have been requested that would lead staff to believe that the property no
longer meets these standards. An exterior inspection of the property was performed and no conditions
exist that would characterize the property as substandard.
The tree(s) in question (see photos) were evaluated by a member of the City Services staff as well as
Alliant Energy. City Services staff did not feel that the tree was an immediate danger. Alliant Energy
indicated it may qualify for trimming, but they would not undertake any immediate trimming. They
indicated they would consider including the trimming in their next regular round of tree-trimming.
There are several areas of the Home Improvement Program manual that define the type of work,
allowable costs, and priority of work to be funded. To be more specific, Chapter 3, Eligibility, states:
(Ch. 3, Section III, Eligible Work, A. General Requirements)
1.Permanence Requirement
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The rehabilitation will be a permanent improvement to an existing structure which
accomplishes any of the following:
a. Maintains the structure in a decent, safe, and sanitary condition or restores it to
that condition.
b. Extends the economic or physical life of the structure.
c. Conserves the use of energy within the structure.
d. Restores or preserves elements of architectural/historical importance.
e.Improves the accessibility of residential housing to a handicapped occupant, in
which event the rehabilitation work may be of a temporary nature.
f.Reduces identified lead based paint hazards.
Chapter 3 of the manual also defines allowable costs and classifies them as either general
improvements, special improvements, and code-related improvements:
(Ch. 3, Section III, Eligible Work, B. Allowable Costs (1-3))
B. Allowable Costs
For the purposes of the Home Improvement Program, the types of costs that may be
financed with a home improvement loan are classified as general improvements, special
improvements, and code-related improvements.
1. General Improvements
Whether additions, alterations, or repairs, the costs of improvement work needed to
put the property into sound and readily maintainable decent, safe and sanitary
condition with all necessary facilities in good working order, even though such work may
not be required by the property rehabilitation standards applicable to the property, may
include, but are not necessarily limited to the costs of the following work:
a.DESIGN the necessary design services in the event the homeowner chooses to
employ a private designer to prepare plans and/or specifications.
b.STRUCTURAL additions and alterations to foundation and framing system including:
foundation and chimney repair/reconstruction, floor, wall and roof framing repairs,
installation of beams and columns for support, porch and step
repair/reconstruction, door and window repair/replacement, interior wall
restructuring to better utilize available space and construction of room additions if
such space is needed to alleviate an overcrowded condition.
c.ROOFING system repair and replacement including installation of gutters and
downspouts for drainage.
d.PLUMBING system repair/ replacement/ additions including: bathroom fixtures,
kitchen sink, water heaters and softeners, renovation of water supply and drain-
waste-vent systems to meet plumbing code requirements.
e.HEATING system repairs/ replacement/ alteration including: repairs to or
replacement of furnace/ boiler systems, pipes, ducts and radiation, installation of
exhaust and ventilating fans and installation of humidifiers. Mechanical air
conditioning systems are fundable only when need for medical reasons can be
established. Alternate energy systems will be considered on an individual project
basis.
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f.ELECTRIC system repairs/ replacement/ additions including upgrading service to 100
amp, installation of new circuits, outlets, fixtures, switches and rewiring to meet
electrical code requirements.
g.ENERGY conservation related improvements including: insulation, installation of
storm doors and windows, caulking, weather-stripping and repair needed to reduce
infiltration. Energy system monitoring devices and devices intended to improve
efficiency of energy systems will be considered on an individual project basis. In
general, energy conserving devices and designs may be considered if it can be
established that the payback period offsetting the cost of such, is five years or less.
h.INTERIOR renovation including: wall, floor, ceiling and woodwork repair, general
renovation of kitchen and bath, including cabinets and countertop, floor coverings,
painting, and miscellaneous such as door and window locks.
i.EXTERIOR renovation including: siding and trim repair/replacement, painting,
waterproofing, porch, deck, step and railing repair/replacement.
j. SITE improvements including: general cleanup of property and removal of
deteriorated outbuildings, garage repairs and painting, repair/replacement of walks
and driveways and landscaping.
2. Special Improvements
The costs of work in the above general improvement categories may be financed with a
home improvement program loan for the following improvements:
a.CONVERSION, the improvement work needed to convert the property so as to
change its use or the number of dwelling units, provided that: the use of the
structure is residential and the number of dwelling units after work has been
completed is two or less, and the improvements conform to zoning ordinance and
building code requirements.
b.ACCESSIBILITY, the alterations necessary to make the structure more readily
accessible to a handicapped homeowner or member of the homeowner's family.
Such alterations include, but are not necessarily limited to: the design and
construction of ramps for wheelchair use, restructuring of doorways, modifications
to kitchen and bath facilities and installation of specialized equipment i.e. grab bars,
door hardware, shower seats, thermostatically controlled mixing valves, mechanical
lifts, etc.
c. HISTORICAL/ARCHITECTURAL RESTORATION which includes the reconstruction and
addition of architectural elements previously removed from the structure, the repair
of existing architectural elements and the appropriate replacement of elements
beyond repair.
NOTE: All improvement work funded under the Home Improvement Program
performed on structures or property of architectural/historical importance shall be
accomplished in accordance with the intent of the standards outlined in the
Secretary of the Interior's "Standards for Historic Preservation Projects" (see
Appendix 2).
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3. Code Related Improvements
Code related improvements may include the following:
a. The cost of improvement work needed to correct existing violations of the
requirements of the Janesville Housing and Building Codes and other applicable
property rehabilitation standards.
b. The cost of improvement work needed to correct incipient violations of the
requirements of the Janesville Housing and Buildings Codes and other applicable
property rehabilitation standards. An "incipient violation" is an existing condition of
an element of the structure that is not in violation of the requirements of applicable
property rehabilitation standards at the time of inspection, but which will clearly
deteriorate into an actual violation of such requirements within a one- or two-year
period if not corrected.
C. Costs Not Allowable
Except as otherwise provided, the costs that may be financed with a home improvement
loan do not include the following:
1. The costs of materials and labor of work which would destroy distinguishing qualities or
character of the building.
2. The costs of materials, fixtures, equipment, or landscaping of a type of quality which
exceeds that customarily used in property of the same general type as the property to
be rehabilitated, according to the experience of the home improvement program.
3. The costs of purchase, installation, or repair of furnishings.
4. Improvements on mixed use structures that will exclusively or primarily benefits the
commercial facilities.
5. Specific items listed as ineligible in Appendix 3.
Chapter 3 of the manual further sets an order of work priority that states the following:
(Ch. 3, Section IV, Priorities.. C)
C. Work Priorities
Under the Home Improvement Program funding, emphasis will be placed on work needed
to maintain the structure in a decent, safe, and sanitary condition or to restore the structure
to such a condition. Consequently, the Community Development Authority has established
priorities for work on individual projects. The following classes of work establish the Home
Improvement Program's priorities and work approved for funding on an individual project
will be in accordance with such priorities.
1. CLASS I: STRUCTURE/ROOF - Improvement work required to correct major structural
deficiencies and work required to correct deficiencies in roof covering shall be
considered highest priority for funding with loan proceeds. General improvements in
this class are listed in Section III, B, 1, b and c of this chapter.
2. CLASS II: MECHANICAL/ENERGY - Improvement work required to render mechanical
systems (electrical, plumbing, heating) safe, fully functional and code complying; and
work required to properly enclose the structure and conserve energy within the
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structure shall be considered high priority for funding with loan proceeds. General
improvements in this class are listed in Section III, B, 1, d, e, f, and g of this chapter.
3. CLASS III: INTERIOR RENOVATION - Work required to establish or maintain decent, safe,
and sanitary conditions within the structure shall be considered high priority for funding
with loan proceeds. Decorating and cosmetic-type improvements shall be considered
lower priority. General improvements in this class are listed in Section III, B, 1, h, of this
chapter.
4. CLASS IV: EXTERIOR RENOVATION - Work required to establish or maintain decent, safe
and sanitary conditions relating to the exterior of the structure and to the property shall
be considered high priority for funding with loan proceeds. Work of purely cosmetic
nature shall be considered lower priority. General improvements in this class are listed
in Section III, B, 1, I, and J of this chapter.
NOTE: Work required to remove hazards caused by the presence of lead-based paint
shall be considered a high priority and shall be accomplished on each project as part of
the funded work.
Recommendation
Staff believes the request to be inconsistent with Home Improvement Program rehabilitation
priorities, allowable costs, and work priorities as defined by the HIP manual. The proposed work
does not involve the structure of the property, nor does staff believe the work to be of an
immediate nature needed to protect or preserve the structure. Staff can appreciate the concern
of the homeowner. However, due to limited Program dollars and a large pool of applications, staff
must make every effort to adhere to the Program guidelines in place. A motion to deny the
application would be in order.
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