200144-ATTACHMENT 3-MCHIP HANDBOOK AND PROGRAM GUIDELINES 2019.PDF
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ATTACHEMENT 3
Maricopa County Human Services Department
MCHIP HANDBOOK
AND
PROGRAM GUIDELINES
Maricopa County Home Improvement Program
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Contents
Program Purpose (Goals) .............................................................................................................................. 4
Leveraged Funding ........................................................................................................................................ 4
Program Design ............................................................................................................................................. 4
Weatherization ......................................................................................................................................... 4
Emergency and Minor Repairs .................................................................................................................. 4
Major Rehabilitation ................................................................................................................................. 5
Target Area.................................................................................................................................................... 6
The Responsibilities of the Parties ................................................................................................................ 6
Maricopa County Human Services Department ....................................................................................... 6
Homeowner .............................................................................................................................................. 6
Rehabilitation Specialist ............................................................................................................................ 6
Contractor ................................................................................................................................................. 6
Eligibility Requirements ................................................................................................................................ 7
Homeowner Eligibility ............................................................................................................................... 7
Property Eligibility ..................................................................................................................................... 8
Ineligible Properties .................................................................................................................................. 9
Property Standards ....................................................................................................................................... 9
Allowable Work Items ................................................................................................................................... 9
MCHIP Process ............................................................................................................................................ 10
MCHIP Staff Responsibilities ................................................................................................................... 10
Rehabilitation Specialist Responsibilities ................................................................................................ 11
Process .................................................................................................................................................... 12
Program Summary for the Homeowner ..................................................................................................... 13
Prioritization of Applications .................................................................................................................. 13
Application Processing ............................................................................................................................ 13
Completeness Review and Preliminary Approval ............................................................................... 13
Denial of Application ........................................................................................................................... 13
Scope of Work and Bid Process .............................................................................................................. 13
Reasonable Accommodation ...................................................................................................................... 13
Temporary Relocation During Housing Rehabilitation ............................................................................... 14
The Rehabilitation Process .......................................................................................................................... 14
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Bid Process .............................................................................................................................................. 14
Codes and Standard Specifications ......................................................................................................... 14
Bid Award ............................................................................................................................................ 14
Owner Bid Rejection ........................................................................................................................... 15
Contract Closing ...................................................................................................................................... 15
Security Instruments ........................................................................................................................... 15
Rehabilitation Contract Signing .......................................................................................................... 15
Permits .................................................................................................................................................... 16
Clean-Up.................................................................................................................................................. 16
Waste Management Plan ........................................................................................................................ 16
Timely Manner ........................................................................................................................................ 16
Owner Selections .................................................................................................................................... 16
Payment .................................................................................................................................................. 17
Warranties and Owners Manuals ........................................................................................................... 17
Final Inspection ....................................................................................................................................... 17
Equipment Maintenance Education ....................................................................................................... 17
Energy Efficiency Guidelines ................................................................................................................... 17
Complaint and Grievance Procedure .......................................................................................................... 18
Non-Discrimination ..................................................................................................................................... 18
Fair Labor Standards ................................................................................................................................... 18
Applicable Documents ................................................................................................................................ 18
MCHIP Program Guideline Updates ............................................................................................................ 18
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The Maricopa County Housing & Community Development Division (HCD) adopts the following Home
Improvement Program Guidelines to assist in administering emergency and minor/major housing
rehabilitation programs. The Maricopa County Home Improvement Program (MCHIP) is intended to
provide safe and decent housing to the residents of the Urban County areas of Maricopa County by
offering homeowners with rehabilitation or modification of their home.
Program Purpose (Goals)
1.
Eliminate situations causing emergencies in homes
2.
Eliminate health and safety hazards in homes
3.
Benefit low to moderate income residents
4.
Provide needed adaptations for persons with disabilities
5.
Improve energy efficiency
6.
Comply with property rehabilitation standards
Leveraged Funding
MCHIP rehabilitation will be used in conjunction with the established Weatherization (WX) program
whenever possible and be leveraged with the WX program funding or funding from any other source as
long as the guidelines required of each available funding source are met. Rehabilitation projects can be
conducted without leveraged funding from WX and completed as separate projects. When completing a
home energy assessment for WX, Maricopa County will assess and identify additional issues to be
remedied with leveraged funding to maximize the improvement of the home.
Program Design
The purpose of the Maricopa County Home Improvement Program is to alleviate situations detrimental
to health and safety, reduce energy consumption, and improve the livability of homes owned by income
qualified families. MCHIP is comprised of four (4) types of assistance including 1) emergency repairs 2)
minor home rehabilitation 3) major home rehabilitation, and 4) Veterans’ Homeowner Rehabilitation
based on the requirements of the available funding sources as follows:
Weatherization
Weatherization (WX) installs cost-effective energy efficiency measures for existing residential housing. It
includes a wide variety of energy efficiency measures that encompass the building envelope, its heating
and cooling systems, its electrical system, and electricity consuming appliances.
Emergency and Minor Repairs
HCD administers the Community Development Block Grant (CDBG) funding for the Urban County
communities to provide emergency repair or rehabilitation to properties owned and occupied as the
primary residence of income-qualified homeowners. These funds may be used when:
• Elimination of home related emergency situations and hazardous conditions including disability-
related accessibility or lead-based paint removal, resulting in a unit that is decent, safe, and
sanitary;
• Correction of the hazardous conditions is necessary to avoid displacement of the owner occupants.
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Assistance is available in the form of no-interest, deferred payment forgivable loans:
•
Emergency repairs and minor rehabilitation $1,000 to $25,000 (excluding administrative cost of
MCHIP or Contracted Program Management Firm) funded with CDBG.
•
There is a limit of one loan per property.
Major Rehabilitation
Maricopa County Human Services Department (HCD) administers the HOME Investment Partnerships
Program (HOME) and various non-federal funds related to Veterans’ Homeowner Rehabilitation for
programs to provide rehabilitation to eligible property types owned and occupied as the primary
residence of income-qualified homeowners. Rehabilitation activities may include: improvement and
replacement of major systems in danger of failure, installation of essential improvements critical to the
health, safety and security of the occupants, improvements and removal of barriers that prohibit or limit
accessibility for any household members’ medical issues, and improvements relating to energy
conservation, accessibility, or lead-based paint removal. Assistance is available in the form of no-interest,
deferred payment, forgivable loans.
•
Major Rehab - $25,001 up to the HUD approved Homeownership Value Limit for Maricopa County as
a deferred forgivable loan. Repayment of the loan is due at the time of title change, resale, refinance
with cash out, or non-compliance with the program requirements. Depending on funding source,
loans must be repaid if the home is sold, rented, or transferred during the forgiveness period. The
loans will be forgiven at the rate of $10,000 per year. These loans are not a conventional equity loan
or equity line of credit. Funding must be used to correct code violations, health and safety and
deferred maintenance which may cause code violations in the near future. If the homeowner passes
prior to the loan forgiveness end date, the home and the deferred loan may be transferred to an
immediate family member (immediate family member: spouse, children, grandchildren, niece, or
nephew). The property must be the immediate family member’s primary residence within 6 months.
The immediate family member must meet income qualifications for the program. A new title and lien
documents will be signed and recorded in the new owner’s name.
•
Accessibility and related improvements – When funds are available, eligible veterans may apply
to HSD for the Veterans’ Rehabilitation Program by submitting an application. Verification shall
determine the homeowner is a U.S. Veteran. This program requires a deed of trust that must be
repaid if the home is sold, rented, or transferred. The service-related disability is a medical
determination indicating that improvements and structural alterations are necessary or
appropriate for the effective and economical treatment of his/her disability. Additionally, the
application will include documentation supporting homeownership by the applicant.
For applicants that meet the qualifications of more than one program, funds may be combined and may
total more than the individual program limits.
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Target Area
To be eligible for emergency repair, minor or major rehabilitation programs, clients must be full-time
permanent residents who live in Buckeye, El Mirage, Fountain Hills, Gila Bend, Goodyear, Guadalupe,
Litchfield Park, Tolleson, Youngtown, and Wickenburg, or within unincorporated areas or county islands
in Maricopa County. To be eligible for Veterans Homeowner Rehabilitation program, residents of other
communities in Maricopa County that are served by another HUD funded rehabilitation program may also
qualify for assistance. For the Weatherization (WX) program only, residents in Maricopa County, outside
of the Cities of Phoenix and Mesa and all unincorporated areas or county islands.
The Responsibilities of the Parties
Maricopa County Human Services Department
Maricopa County Human Services Department (MCHSD) is the grantee. MCHSD is responsible through
the MCHIP Coordinator for ensuring that homeowners are eligible and qualified for the assistance
provided by the funding sources, that the funding is utilized for the purposes required, and that the other
parties meet their performance responsibilities before payments are disbursed from grant funds.
Homeowner
The homeowner is responsible for providing complete and accurate information required to qualify for
MCHIP assistance; keeping appointments with the other parties related to the rehabilitation work;
executing and complying with all required applications, contracts and security instruments; authorizing
payment when specified work has been completed in a reasonable workmanlike manner; and complying
with all terms of contracts.
Selected Rehabilitation Specialist
The Rehabilitation Services Provider (Rehabilitation Specialist) is sub-contracted and is responsible for
contacting the homeowner once the application has been approved; inspecting the home and preparing
a scope of work; reviewing the scope of work with the homeowner; securing and reviewing bids with the
homeowner; reviewing the contract between the homeowner and contractor with each party; providing
contract closing with the homeowner and the contractor; coordinating temporary relocation when
required; providing contract management services; reviewing disputes between the homeowner and the
contractor, and providing written determinations if contract arbitration is needed; coordinating the
transmittal of warranty documents; and preparing change orders and payment authorizations with the
consent of the homeowner for presentation to the MCHIP Coordinator for payment.
Contractor
The contractor is responsible for being licensed for the type of work specified in the scope of work, in
good standing with the Registrar of Contractors (ROC), in good standing with the Arizona Corporation
Commission, in possession of a Dun & Bradstreet (DUNS) number, and not debarred from HUD funded
contracts. The Contractor is responsible for complying with the terms and conditions of the contract;
completing only the work that is listed in the contract unless a contract change order is executed by the
Rehab Specialist and acknowledged in writing by the MCHIP staff; performing all work specified; and
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completing work to meet high quality work standards. It shall be the responsibility of the contractor to
ensure that all subcontractors meet the same standards as those required of the contractor.
Eligibility Requirements
Homeowner Eligibility
Application Process – For each application for assistance, the MCHIP coordinator will determine eligibility
based on income, assets, the stated needs of the homeowner by funding source, and the resources
available to the applicant before processing an application. Processed applications will be forwarding to
the Rehabilitation Specialist.
To be eligible, the homeowner/applicant and the property to be rehabilitated must meet the following
threshold criteria:
•
The applicant must own and occupy the property to be rehabilitated;
•
The applicant must be listed on the title of the home. If additional persons are listed on the lien,
but do not reside in the home, the procedures below will be followed;
•
An owner-occupant who is the sole grantor of a family trust that holds no other real property may
also qualify. If multiple persons in family trust they must sign as stated below;
•
A.R.S. 1-501 and 1-502 requires that all homeowners who receive services under the MCHIP shall
provide proof of lawful presence in the United States including a sworn affidavit that the required
documentation is true under penalty of perjury;
•
Applicants must be income qualified at the time of verification of income. Income verification is
valid for a period of six (6) months (for CDBG & HOME) and twelve (12) Months (for WX). Upon
expiration of income verification information, applicants must complete and submit new income
verification documentation.
o Applicants for HOME and CDBG funded rehabilitation must have a verifiable income from
all sources that falls below 80% of the current Area Median Income as indicated by HUD.
Income guidelines are updated annually by HUD. MCHSD will utilize Part 5 Income
Guidelines to calculate the gross projected annual income for all applicants, including
applicable income inclusions and exclusions, and calculation of assets.
o Applicants for Weatherization assistance must have incomes below 200% of Federal
Poverty Levels distributed by the Department of Energy, updated every year.
o Applicants for Veterans Rehabilitation assistance are not required to meet income
criteria; however, an application may be rejected if liquid household assets are readily
available to cover the cost of needed modifications or if they fail to meet the affordability
assessment.
•
Households applying for funding are assessed and placed on wait lists based on level of emergency
and type of funding for which they are qualified. Priority may be given to, in no certain order,
households with 1) One or more children aged 17 or under residing in the residence; 2) No heating
or cooling in the corresponding season; 3) Health, safety, or security issues that are an immediate
threat to occupants;
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•
If homeowner is currently undertaking any construction projects, they must complete any
projects currently underway, prior to the County’s approval of MCHIP assistance;
•
Homeowners unwilling to follow the MCHIP guidelines are not generally eligible for rehabilitation
under this program.
Additional Persons on the Lien – If multiple owners are listed on the deed, the person who applied and
signed the application must reside in the home and be the signatory on all documents according to the
following process. The other person(s) listed on the title not residing in the home must sign a document
stating they do not reside in the home, and supply a copy of their ID, and sign the lien documents
whenever possible (best practice). If the persons live out of state, for example, or signing would otherwise
be too onerous, the persons will sign a statement upfront granting the owner-occupant the authority to
approve the scope of work and sign all documents, and that they understand that a lien will be placed on
the property.
Property Eligibility
The following property types are eligible:
•
Single-family (one-unit structures);
•
Condominium units;
•
Manufactured and Mobile Homes where the land is owned by the mobile home
owner.
To be eligible, the property to be rehabilitated must also meet the following criteria:
•
Located within the cities/towns and areas listed in Target Area section above;
•
Feasible for rehabilitation under the time and monetary constraints of the program as determined
by the Rehabilitation Specialist in consultation with the MCHIP Coordinator;
•
Owned and occupied by a full-time permanent resident;
•
The current owner must have owned and occupied the structure for at least one (1) year prior to
program entry. In the event of extenuating circumstances or an emergency in home having been
owned less than one (1) year, MCHIP staff may approve applicants to program.
•
Homes of historical value may only be eligible upon favorable review by the State Historic
Preservation Office;
•
Properties with an open building or code case are generally not eligible for rehabilitation.
However, if the case is relating to a correctable building condition that MCHIP funds can correct
under the requirements of the program, then the unit will be deemed eligible;
•
Properties may be encumbered by a mortgage in the first position so long as a financial institution
or other such mortgage company holds that mortgage. MCHIP loans can be filed in second or third
position behind a primary mortgage;
•
Properties located in the 100-year floodplain may be ineligible unless the property owner carries
flood insurance;
•
Properties served by a homeowners association (HOA) may be ineligible if the needed repair is
the responsibility of the HOA or if the HOA refuses consent to the repair;
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Ineligible Properties
•
Properties in which the owner listed on the deed does not live in the home or has not lived in the
home for the prior 12 months from the date of the application. In the event of extenuating
circumstances or an emergency in home having been owned less than one (1) year, MCHIP staff
may approve applicants to program.
•
Properties that are vacant, in escrow, or currently listed for sale;
•
Properties having additions not properly licensed and inspected from the state and/or local
building inspectors. May be eligible on a case by case basis, depending on the quality of the
additions and the rehabilitation work to be performed;
•
Properties located in the 100-year floodplain that do not have flood insurance;
•
Properties having issues causing safety hazards to workers;
•
Properties whose owner or any occupants are not being cooperative or endangering staff or
workers;
•
Properties with severe moisture or mold issues. May be eligible on a case by case basis, after
inspection of the severity of the issues;
•
Manufactured and mobile homes that do not meet the requirements listed under Property
Eligibility for Manufactured Housing.
Property Standards
The property standards that must be achieved as a result of assisted rehabilitation are established by the
source of funds. They include the HUD Uniform Physical Condition Standards and the Maricopa County
Rehabilitation Standards. Projects may also include the Owner Occupied Housing Rehabilitation
Weatherization Standards and the Department of Energy’s Standard Work Specifications if applicable.
Scopes of work will incorporate the energy efficiency requirements of the funding sources being made
available for the rehabilitation project.
Allowable Work Items
The following are examples of work that may be included in an assisted rehabilitation project:
•
Roofing
•
Plumbing
•
Cooling/heating
•
Electrical
•
Stoves
•
Accessibility items
•
Ceilings/walls
•
Water heaters
•
Energy efficiency modifications
•
Painting/sheetrock
•
Exterior doors
•
Stairs/steps
•
Windows
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•
Floor coverings
•
Lead abatement
•
Refrigerators
•
Concrete work needed to correct tripping hazards or meet code
•
Asbestos testing and abatement
•
Mold/Fungi testing on a case by case basis
•
Any condition in the home that may affect the occupant’s safety (e.g. sharp edges,
electrical hazards, tripping etc.)
•
Any condition or item in the home that may affect any occupant’s health conditions.
(Example- badly worn, torn, or soiled carpet, etc.)
Additionally, when the MCHIP Coordinator determines that a homeowner is eligible for HOME funds, the
HOME guidelines require that an entire dwelling be brought up to local code; if such improvements are
eligible under this program. A preliminary property inspection must be completed by the Rehabilitation
Specialist to assist with ensuring homes meet Uniform Physical Condition Standards (UPCS) and are safe,
sanitary and decent and that major systems, which include: structural support; roofing; cladding and
weatherproofing (e.g., windows, doors, siding, gutters); plumbing; electrical; and heating, ventilation, and
air conditioning have a projected useful life of at least five (5) years.
Priorities have been established for determining the work that will be completed in the eligible homes.
The following are taken into consideration when determining items for inclusion in the work-write up
(Scope of Work):
•
The age and the physical condition of the building;
•
The goal of the source of funding;
•
The amount of funds available for rehabilitation of each unit; and
•
The projected value of the unit after rehabilitation.
Although condominium properties that are owner occupied are generally eligible for assistance, certain
conditions may be present which could render the provision of assistance infeasible/ineligible. Repairs to
major components determined by CC&Rs to be the responsibility of the HOA cannot be included in an
assisted contract. A dilapidated component, such as a roof would have to be repaired by the HOA prior
to an assisted rehabilitation contract. A roof owned by an applicant but shared with an adjacent unit with
no architectural separation would also make repair infeasible and render the property ineligible for
assistance.
MCHIP Process
There will be two levels of oversight on every project.
MCHIP Staff Responsibilities
•
Receive and process Inquiry Form from Maricopa County website and other referrals.
•
Prescreen homeowner for financial and non-financial eligibility.
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•
Schedule interview with homeowner.
•
Collect necessary documents and complete the application that covers all home improvement
programs during interview. Facilitate homeowner signature on all required documents.
•
Order and review the preliminary title report for all properties that will require recording of
security instruments.
•
Approve application and determine programs for which the applicant is eligible.
For projects which require a lien, MCHIP staff will order an owner occupied title search report.
• Send job order to Rehabilitation Specialist for processing.
•
Inspect home before scope of work is approved.
For CDBG and HOME funded properties, ensure an environmental review has been approved for
the site. These funds may not be used for a property where the Rehabilitation Specialist has
awarded the bid before the environmental review been approved.
•
Approve scope of work.
•
Conduct the execution of the rehabilitation contract by the homeowner at time of closing to
explain and secure signatures for deferred loan security instruments.
•
Convey security instruments for recording/servicing.
•
Review monthly job closed billings.
•
Approve billings for payment.
Rehabilitation Specialist Responsibilities
•
Schedule a date and time convenient with homeowner on approved job orders for a
home assessment.
•
Initial walk through.
•
Perform home assessment at time of in-home application intake with MCHIP staff,
whenever possible. Provide for any testing required to complete the scope of work,
including lead, mold, asbestos, or roofing.
•
Create a scope of work and submit to the MCHIP Coordinator and homeowner for
approval.
•
Solicit bids for the approved scope of work.
•
Assist homeowner in the review of bids and acceptance.
•
Send successful bid and contractor information to MCHIP for approval.
•
Verify registration of all contractors and subcontractors on SAM.gov to ensure all
contractors are not debarred from receipt of federal funds. Print documentation and put
in project files.
•
Secure Conflict of Interest documentation from general contractor and subcontractors.
•
Obtain Section 3 documentation from the general contractor and subcontractors.
•
Coordinate relocation of tenant where necessary and appropriate.
•
Upon the MCHIP Coordinator’s approval, schedule a start date for construction.
•
Conduct contract closing with the homeowner and rehabilitation contractor.
•
Frequently monitor work while in process.
•
Process draw requests and change orders under the terms of the rehabilitation contract.
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•
Conduct final inspection and sign form verifying work has been completed.
•
Have homeowner sign form verifying work has been completed.
•
At end of month in which the job has been completed, send completed job to the MCHIP
Coordinator for payments to contractors and Rehabilitation Specialist.
Process
1.
Common referrals to program may include:
•
Urban County Community Action Programs
•
Urban County Cities and Towns
•
Network agencies
•
Homeowners who have received services
•
Maricopa County’s Weatherization Program
•
Website searches
2.
An Inquiry Form must is completed by the homeowner on the Maricopa County Website.
If the homeowner has limited access to internet, or is otherwise unable to complete the Inquiry Form,
with permission from the homeowner, other individuals may complete the form, including:
•
Family members
•
Case managers
•
Human Services Department staff
•
Urban County Community Action Programs
•
Network agencies
•
Maricopa County’s Weatherization Program staff
A paper Inquiry Form may also be completed and submitted to the address below. The Inquiry will be
entered into the online database by program staff.
Attn: MCHIP Inquiry
Maricopa County Human Services Department
234 N Central Ave.
Phoenix, AZ 85004
3.
Once an Inquiry Form has been submitted, MCHIP program staff will contact the homeowner
within 10 days by phone or email to discuss their inquiry and program status (e.g. not eligible, on wait list
etc.)
For an emergency situation, MCHIP staff will evaluate the situation to determine extent of the emergency.
The above steps will be conducted in order, however the client may not be put on a waiting list depending
of severity of the crisis. If more than one homeowner has a crisis situation, they will be handled in the
order they are received.
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Program Summary for the Homeowner
Prioritization of Applications
Eligible applicants will be prioritized based on program eligibility, and funding availability, unless the
nature of the project constitutes an eminent threat to health or safety, as determined by the MCHIP staff.
Homes with conditions that threaten health and safety will be given highest priority.
Application Processing
Completeness Review and Preliminary Approval
Application processing will begin with a “completeness review.” All applications will be processed by HCD
for program eligibility, and MCHIP Staff will advise the homeowner of the resources available for the
project.
Complete applications will be forwarded to “preliminary approval” and determination of the types of
assistance. If funding application is approved, MCHIP staff will request a preliminary title report on the
property to verify ownership and any exceptions to the filing of security instruments to secure the period
of the deferred loan. Upon confirmation of preliminary approval, an eligible applicant will be referred to
the Rehabilitation Specialist for preparation of the scope of work for eligible repairs.
Denial of Application
If at any time prior to the issuance of the Notice to Proceed for the rehabilitation contract, it becomes
necessary to deny the application for assistance, the MCHIP coordinator will prepare a letter of denial,
providing the reason(s) for denial and whether or not there may be conditions under which the applicant
could reapply to the MCHIP Program.
Scope of Work and Bid Process
The homeowner will be referred to the Rehabilitation Specialist for a housing inspection and the
development of the scope of work. The homeowner will be advised of the specific work items eligible for
inclusion in the assisted contract. During the preparation of the scope of work, program specific conditions
will be identified and discussed with the homeowner. For example, the Veterans Rehabilitation program
will identify modifications needed for disabled veterans and it will be determined if relocation is
necessary. If relocation is necessary, temporary relocation assistance services will be provided as a direct
program cost and included in the deferred loan, secured by a lien (if lien is required by funding source
used).
Reasonable Accommodation
For projects where it is an eligible program cost, the Rehabilitation Specialist may include in the scope of
work common adaptions for accessibility including ramps, grab bars, door bells, and smoke alarms for
persons who are sensory impaired. In some cases, the owner may feel that additional modifications are
needed to allow the person with a disability to have use of the home in a manner equal to a person
without disabilities. In order to document the request, the considerations and the decision, the
Rehabilitation Specialist will treat these requests as requests for reasonable accommodation and will
immediately refer such requests to the MCHIP Coordinator. Although requests for reasonable
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accommodation are not complaints, the process to address these requests will follow the steps of the
Complaints and Grievance Procedure described later in this handbook.
Temporary Relocation during Housing Rehabilitation
Owner occupied housing rehabilitation programs do not fall under the Uniform Relocation Assistance
(URA) definition of “displaced person”, therefore all reasonable measures will be taken to have the
household move in with friends, relatives, or neighbors. MCHIP will use an optional relocation policy as
follows for all rehabilitations, if the owner is unable to secure temporary housing:
1. The temporary dwelling must be suitable and decent, safe and sanitary --- but not necessarily
comparable. All other conditions must be “reasonable.”
2. Relocation will follow Lead Safe Housing measures.
3. Reasonable out of pocket expenses may include, but are not limited to:
Housing costs of temporary dwelling (rent, utilities)
Rehab contractor will provide a storage pod on site and give homeowner reasonable time
to move household items into pod and remove items when project is compete. If
homeowner is unable, or family or friends unable, to move items this cost may be included.
Rehabilitation Process
Bid Process
The “bid process” will be administered by the Rehabilitation Specialist and will include multiple
contractors selected from a preapproved qualified bidders list, as well as licensed contractors proposed
by the homeowner. All bids will be reviewed with the homeowner and responsibility for selection of the
qualified bid will rest with the homeowner. The homeowner may select any bidder who submits a
responsive bid; however if they homeowner does not select the lowest responsible bidder they are
required to pay the difference in cost between the lowest responsible bid and the bid of their choice.
Codes and Standard Specifications
The contractor is responsible for knowledge of the City and County’s building codes. All work must
conform to that City’s Building Codes and/or meet approved Uniform Building Codes unless otherwise
specified in writing. The property standards that must be achieved as a result of assisted rehabilitation
are established by that City’s Building Codes, the Federal Uniform Physical Condition Standards, the
Maricopa HOME Consortium’s Housing Rehabilitation Standards with the MCHIP Supplement, and/or the
Owner Occupied Housing Rehabilitation Standards. ICC 2012
Bid Award
Bid selection award is made by the homeowner; however, the Rehabilitation Specialist will recommend
the lowest priced most responsible and responsive bidder. The County reserves the right to reject any
and/or all bids for reasons including, but not limited to, the following:
1. The contractor is not licensed, has a license that is suspended, or has been debarred from
federal procurement or receipt of federal funds.
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2. The contractor is not able to proceed with the project in a timely manner, has failed to
complete past projects in a timely manner or has failed to respond appropriately to requests for
warranty service.
3. The bid submitted is more than 15% above or below the estimate and may not be able to
complete the project for the estimated amount.
4. The contractor’s bidding forms are improperly filled out, incomplete, or the contractor is not
using the correct bidding forms provided.
Owner Bid Rejection
The homeowner may reject any or all bids without cause, subject to the following provisions:
•
The homeowner may choose to reject the lowest bid and select a contractor other than
the lowest bidder if the owner is willing to provide, from the homeowner’s own funds, an
amount equal to the difference between the lowest bid and the selected bid. If the
homeowner selects a bid other than the lowest responsive bid, the homeowner must
provide a certified check for the difference between the low bid and the selected bid prior
to contract closing. The check will be made out to the rehabilitation contractor, given to
the Rehabilitation Specialist for disbursal as a credit against the total of the approved first
draw.
•
The owner may reject all bids at any time up to three working days after the contract is
closed.
Contract Closing
Security Instruments
HOME and CDBG funded rehabilitation projects require a one year lien for every $10,000 in federal funds
invested in the home. The liens are forgiven at a rate of $10,000 per year after the project completes (for
example, a loan for $40,000 would be forgiven at $10,000 per year for a total of 4 years). For these
contracts, MCHIP staff will meet with the homeowner prior to the rehab contract signing to assist the
homeowner in the execution of the security instruments. These security instruments in the form of notes,
deeds and loan agreements will not be recorded until three days after the contract between the
contractor and the homeowner is signed. In the event that the homeowner decides to cancel the contract
during the three day rescission period, the security instruments will be returned to the homeowner
without being recorded.
Rehabilitation Contract Signing
The Rehabilitation Specialist will facilitate the contract signing between the homeowner and the
contractor.
The contract will be between the homeowner and the contractor. However, the contractor and
homeowner may not discuss the award or non-award of the project until the Rehabilitation Specialist has
completed the required procurement process. The County will serve only as an administrator/financier to
the contract. The contractor must be a licensed contractor in the State of Arizona, hold a City business
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license, be in good standing with the Registrar of Contractors, and not appear on the excluded parties
listing as verified in SAM.gov.
Permits
The permit application for the project is prepared, submitted, and paid by the Contractor. The Building
Permit will be issued upon receipt of payment from the contractor. All required permits must be picked
up before beginning any work on the property. The contractor must follow the Building Department’s
procedures for scheduling inspections. The contractor is responsible for all necessary inspections of the
property.
Clean-Up
The job site should be thoroughly cleaned during and upon completion of the project. All construction
debris of every sort should be removed along with other debris that may have been on the property or
collected during the work. Compact, grade, and rake any area disturbed by construction for proper
drainage.
Construction debris is to be hauled to the landfill and disposed of in accordance with all local ordinances.
Under no condition is debris to be left for City pick-up.
Waste Management Plan
All contractors must submit a waste management plan during the construction contract period. This plan
will describe the contractor’s plan to dispose of any sanitary or hazardous waste (construction debris, old
light bulbs, lead ballasts, piping, roofing materials, discarded appliances, lead and asbestos, etc.). Once a
waste management plan is on file this document can be used on subsequent jobs. This plan will be
updated on July 1st of each year.
Timely Manner
Work should proceed in a diligent manner after start-up. Progress inspections will be made frequently.
While material or subcontractor delays are sometimes unavoidable, extended periods without progress
or repeated unnecessary delays in completing a project may constitute grounds for rejecting future bids.
For typical rehab projects, the contractor is expected to complete the job within 45-60 days from the
notice to proceed. There is a two-year warranty on workmanship and materials.
Owner Selections
The homeowner is allowed to select the following items from available standard colors, if applicable:
1. One interior paint color
2. Exterior wall and trim color
3. Counter top
4. One carpet color
5. One color and pattern for floor tile and one color for grout. (Grout to be sealed)
The contractor must supply the homeowner with a minimum of three (3) color samples.
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Payment
No payments shall be made to the contractors without written approval from the Rehabilitation Specialist,
the County and the homeowner, with the exception of disputed discrepancies which may be resolved and
paid with the signature of the Rehabilitation Specialist and the County. The Rehabilitation Specialist will
frequently monitor all rehabilitation work. No payments will be made to the contractor until the job is
inspected by the Rehabilitation Specialist and final inspection completed by MCHIP staff and the job is
deemed complete.
Warranties and Owners Manuals
The contractor shall warrant all work for a period of two (2) years or more, exclusive of the manufacturer’s
warranty, from the date on the approval of the final inspection, which will be signed by the homeowner
and the Rehabilitation Specialist. Major systems or items necessary to make the property meet code
should be analyzed on the basis of a five year life expectancy. Major systems include: roofs, heating,
cooling, plumbing, water heaters, and electrical components. When included in a project, warranties for
all items such a new appliances/hot water heaters shall be given to the Rehabilitation Specialist. The
Rehabilitation Specialist will provide copies of warranties (can be pictures of warranty papers) to the
MCHIP Coordinator and forward originals to the homeowner.
Final Inspection
After the contractor has passed all permit inspections from the Building Department, the contractor will
inform the Rehabilitation Specialist so that a final inspection can be scheduled.
Approval of the work by the City Building Inspector does not replace the requirement for acceptance of
the workmanship by the homeowner, Rehabilitation Specialist, and the County.
Upon the homeowner’s acceptance of the work completed, payment will be issued after final invoice and
final inspection acceptance, and lien paperwork are presented to the County. Final payment can be
expected within 30-45 days of Rehabilitation Specialists invoice submission. Final payment is due seven
(7) working days after the month in which the work was completed and approved.
In the event of any dispute between the owner and the contractor concerning the completion of
rehabilitation, the Rehabilitation Specialist will work with both parties to negotiate a satisfactory solution.
If a solution cannot be arrived at, a grievance can be filed as outlined in this handbook.
Equipment Maintenance Education
The Rehabilitation Specialist and contractor shall conduct training in the home to instruct the
homeowners on the new equipment, appliances, and general housing maintenance counseling on items
installed in the home.
Energy Efficiency Guidelines
The Rehabilitation Specialist will write the bid specifications to include energy efficiency measures as
required by the funding source.
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Complaint and Grievance Procedure
Applicants, program participants, and/or contractors may initiate a complaint by submitting concerns in
writing to the Maricopa County Human Services Department, Attn: MCHIP Coordinator, at 234 N. Central,
Third Floor Phoenix, Arizona 85004.
The MCHIP Coordinator is responsible for receiving, reviewing, and responding to all complaints, including
those related to prequalification of applicant or contractor qualification. The County must issue a written
response to any complaint within fifteen (15) working days of receipt.
If unsatisfactory to the complainant, a written appeal of the County’s response shall be filed within fifteen
(15) working days of receipt of the County’s response. Appeals shall be made to Maricopa County’s
Housing and Community Development Assistant Director, by sending such appeal to Maricopa County
Human Services Department, Attn: HCD Assistant Director, 234 N. Central, Third Floor, Phoenix, AZ 85004.
The Assistant Director of Housing and Community Development shall be the final administrative decision
maker. Further judicial appeals shall be in accordance with A.R.S. Title 12, 12-901.
Non-Discrimination
MCHIP, or any of its sub-recipients, do not discriminate in any activity on the basis of race, color, religion,
sex, disability, familial status, or national origin.
Fair Labor Standards
The provisions of the Fair Labor Standards Act (FLSA) are not applicable to the rehabilitation of single-
family homes under this program.
Applicable Documents
The County uses guidance from the following sources of information pertaining to the administration of
the programs:
1) Maricopa County Housing Rehab Standards.
2) Uniform Physical Condition Standards (UPCS).
3) HUD Information regarding Lead Based Paint and Lead Safe Housing Rule.
4) Maricopa HOME Consortium Owner Occupied Housing Rehabilitation Standards with the
MCHIP Supplement.
5) Weatherization Standards which include Standard Work Specifications.
6) County/Cities Ordinances, and adopted Building Codes.
7) MCHIP Program Guidelines.
MCHIP Program Guideline Updates
The MCHIP Program Guidelines are generally adopted with revisions annually. However, should an
emergency change occur within the Housing Rehabilitation Standards, or funding requirements change,
these changes may be made throughout the program year.
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