HomeMy WebLinkAbout931008.tiff RESOLUTION
RE: APPROVE POLICY FOR ELIGIBILITY REQUIREMENTS FOR CDBG/HOME ASSISTANCE
PROGRAM
WHEREAS, the Board of County Commissioners of Weld County, Colorado,
pursuant to Colorado statute and the Weld County Home Rule Charter, is vested
with the authority of administering the affairs of Weld County, Colorado, and
WHEREAS, the Board has been presented with a Policy for Eligibility
Requirements for the CDBG/HOME Assistance Program for the Weld County Housing
Authority, with the terms and conditions being as stated in said policy, and
WHEREAS, after review, the Board deems it advisable to approve said policy,
a copy of which is attached hereto and incorporated herein by reference.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County, Colorado, ex-officio Housing Authority Board, that the Policy for
Eligibility Requirements for the CDBG/HOME Assistance Program for the Weld County
Housing Authority, be, and hereby is, approved.
The above and foregoing Resolution was, on motion duly made and seconded,
adopted by the following vote on the 27th day of September, A.D. , 1993.
AAA � � i�f� BOARD OF COUNTY COMMISSIONERS
ATTEST:/ // /0//// WELD COUNTY, COLORADO
Weld County Clerk to the Board (4.
Constance L. H r ert, Chaiirrmaann
47
BY: l/Zi-(L AY �/QiC �JJJ i� ���1"
Deputy Cler o the Board W. H. ebste , Pr -Tem
APPROVED AS TO FORM: �� r
� orge Baxt r
County Attorney ' Da C. Hall
/Barbara J. Kirkmey r
931008
ELIGIBILITY REQUIREMENTS FOR CDBG/HOME ASSISTANCE
The staff of the Housing Authority shall have the responsibility for the
eligibility determination of applicants for the Housing Rehabilitation
programs. The Chairman of the Board shall sign-off on the eligibility
determination made by staff, based on staff recommendation. The Weld County
Housing Authority Board shall be used as the appeal process, for an
applicant, on any denial decision made by the staff.
I. Program Eligibility Criteria
A. To be considered eligible for the Housing Rehabilitation program, an
applicant must own and occupy a residential
single-family dwelling in the designated target area.
to be considered owner of record, the applicant must
meet one of the following criteria:
1. The applicant must be listed as owner of the
property (and in cases of mobile homes, the
applicant must be listed as owner of mobile home
and the land on which it is located) on the WELD
COUNTY'S TAX ROLL. or possess a valid contract for
sale or DEED OF TRUST, each of which has been
recorded with the WELD COUNTY CLERK AND RECORDER,
which includes "reasonable rights of
redemption "and" quiet and peaceable possession of
the property",or
2. The applicant must possess a LIFE ESTATE,or Fee
Title evidenced by a WARRANTY DEED, OR QUIT
CLAIM DEED which has been filed for record with
the WELD COUNTY CLERK and RECORDER.
B. The identified property must not be located within the right-of-
way of any street, highway, or other public
right-of-way contemplated in the foreseeable future.
Properties located in the 100-year floodplain, as
designated by FEMA maps and data provided by the
COLORADO WATER CONSERVATION BOARD, and as interpreted
and determined by WCHA staff, are not eligible for the CDBG Program.
C. The identified property must be considered
structurally sound for bringing other deficiencies
into compliance with all applicable codes and
standards, at a cost which is reasonable and
appropriate, giving consideration to the condition and
the value of the dwelling, and the availability of
funds. If the cost for rehabilitation is likely to
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ELIGIBILITY REQUIREMENTS FOR CDBG/HOME ASSISTANCE
exceed 50% of the dwelling's assessed value, the WCHA
shall determine whether or not to proceed with rehab or address
alternatives to rehab, one being that the dwelling is
dilapidated beyond repair. Every effort will be made to assist any
displaced or potentially displaced family with alternative housing,
either directly or by referral.
D. The applicant must have either:
1. a 5% or $1,000 cash equity towards the purchase
price of the home (whichever is greater) ;or
2. lived in the home for a minimum of one year prior
to the date of application to the CDBG/HOME
Program.
E. To qualify for rehabilitation assistance, all
applicants must meet the following HUD income
guidelines. These limits are for adjusted gross annual
income. A deduction against the adjusted gross annual
income will be applied in cases of continuing medical
expenses not covered by insurance, which exceed 3% of
the household's gross annual income.
LOW INCOME MODERATE INCOME
(50% of Area Median) (80% of Area Median)
one person $12,450 $19,900
two people $14,200 $22,700
three people $15,950 $25,550
four people $17,750 $28,400
five people $19,150 $30,650
six people $20,800 $32,850
seven people $22,000 $35,200
eight people $23,450 $37,500
F. Because CDBG/HOME funds are intended to serve low- and
moderate-income homeowners having no other means of
financing rehabilitation work, applicants with
substantial and available liquid resources will be
considered for assistance under the following
guidelines:
1. Applicants under the age of 62 having assets
of more than $5,000 will be required to
contribute the amount in excess of $5,000 toward
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ELIGIBILITY REQUIREMENTS FOR CDBG/HOME ASSISTANCE
the cost of rehabilitation;
2. Applicants 62 years of age and older having
assets of more than $10,000 will be required to
contribute the amount in excess of $10,000 toward
the cost of rehabilitation.
The WCHA board reserves the right to waive any part of
this asset policy under extenuating circumstances as
presented to the WCHA Board and staff by an applicant.
G. The WCHA will rank clients using a point system
based on the following schedule:
Financial
Income at or below 50 15 pts
Assets $5,000 -$9,999 -5 pts
Assets over $10,000 -10 pts
Household Make-up
For each member age 62 or older 5 pts
For single, female head of household 5 pts
For Female head of household w/dependents 5 pts
For each household member 18 or younger 5 pts
For household w/disabled member 20 pts
Housing Condition
Plumbing Severe 10 pts
Electrical Moderate 5 pts
Heating Minor 3 pts
Structural Standard 0 pts
Overcrowding
other
Prior Assistance
Prior Award was $2,000 or less -10 pts
Prior Award over $2,000 -20 pts
Award was grant only -10 pts
93108
ELIGIBILITY REQUIREMENTS FOR CDBG/HOME ASSISTANCE
All clients receiving more than 50 points will be
given a priority ranking. Those receiving less than
50 points will be put on a waiting list for future
consideration.
H. Credit Considerations
All credit decisions shall be based on the applicant's ability to
repay the loan. Action on a loan shall not be based on the race,
creed, color, religion, national order, familial status, sex,
handicap or the age of the applicant.
1. Any applicant in arrears on their mortgage of sixty (60) days or
more shall be denied assistance through the Housing
Rehabilitation program.
2. Any applicant who has delinquent property taxes shall be
determined ineligible for Housing Rehabilitation Assistance.
3. Any time there is a pattern to a payment history of an applicant
that exhibits bankruptcy, unpaid charge-offs, or
collection accounts, the staff may consider this pattern when
determining the applicant's creditworthiness for the Housing
Rehabilitation program. An applicant may be denied when there is
evidence, based on the credit history, that an applicant is
unlikely to re-pay a loan. Any circumstances shich may be
considered as mitigating the poor credit history include:
a. Medically related expenses;
b. A significant change in income which contributed to the
credit difficulty
A. DEFINITIONS
Adverse Information - Information which a creditor's policy
will cause a credit applicant to be denied or restricted.
Examples: past due accounts, unpaid judgments, bankruptcy
filings.
Bankruptcy - Federal law providing relief from burdensome
931.009
debts. The law contains several chapters which
relate to different methods of relief:
Chapter 7 - Straight Bankruptcy
Chapter 11 - Business Reorganizations
Chapter 12 - Farm Debt Bankruptcy
Chapter 13 - Adjustment of Debts of an
Individual with Regular Income
(also call a wage earner plan)
Charge off - Accounting term to indicate the creditor does
not expect to collect a balance owing.
Collection account - Refers to status of account owing a
creditor when it has been transferred
from a routine debt to a Collection
Department -- either of the creditor's
firm, or to a separate professional
debt collection firm.
Judgment - Formal decision of a court in a legal
controversy. Credit bureaus obtain data about
judgments from court records periodically known
as public record. These usually are civil
judgments where money is the source of the
controversy between the parties.
Judgment satisfied - When a judgment is paid in full, the
creditor may file a satisfaction of
judgment form. However, this often is
not done and the only way to determine
if a judgment has been paid or not is
to contact the parties to the suit
themselves. This also applies to
settlements where the creditor accepts
less than the full amount due.
Repossession - Forced, or voluntary, surrender of
merchandise as a result of the customer's
failure to pay as promised. There are
several types and descriptions of
repossession actions, each quite different:
RLD - Paid by dealer.
RLP - Proceeds applied to debt.
RRE - Repossession redeemed
RVD - Returned voluntarily; paid by dealer
RVN - Returned voluntarily.
RVP - Returned voluntarily; proceeds applied
to debt.
RVR - Returned voluntarily; redeemed.
Straight Bankruptcy - A bankruptcy filed in accordance with
Chapter Seven of the Bankruptcy Act.
An individual asks (petitions) for
relief from all debts (after
931009
exemptions) and the remaining assets,
if any, are then converted to cash
which is divided among the
participation creditors.
93100E
(it li
WELD COUNTY HOUSING AUTHORITY
PHONE(303)0 Box 1
O.P. Box A
' GREELEY, COLORADO 80632
C.
COLORADO
TO: Constance L. Harbert, Chairman, Board of County Commi sione
FROM: Judy Griego, Director, Department of Social Services ,
SUBJECT: Eligibility Requirement Policy for Housing Rehabilitat' n rc rac
DATE: September 21, 1993
Attached for Board consideration is the Eligibility Policy for Weld County's
Housing Rehabilitation program as discussed at the Housing Authority Work
Session of September 20, 1993.
The policy provides authority to the staff to determine the eligibility of
applicants for the Housing Rehabilitation Program, provides a concurrence
process by requesting the Board Chairman to sign-off on the eligibility and
defines the Board's role in the appeal process.
Moreover, the policy establishes credit policies which are considered in the
eligibility determination process.
Staff recommends Board approval of the attached Eligibility Requirements for
the CDBG/HOME Program.
If you have any questions, please telephone me at 352-1551 ext. 6200.
11O13-DO-
931 OO8
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