Section 5.

Income Limits for Applicant That is a Nonprofit Housing

Corporation or Cooperative

TERMS AND CONDITIONS UNDER WHICH A HOUSING REHABILITATION LOAN

IS MADE

CHAPTER 4

LIMITATION ON AMOUNT OF LOAN, PROGRAM FEES, AND INCLUDABLE AND

NON-INCLUDABLE REHABILITATION COSTS

Section 3. Costs Includable in a Housing Rehabilitation Loan

Section 4. Costs Not Includable

CHAPTER 5

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PROCESSING OF A HOUSING REHABILITATION LOAN

Section 1. Loan Initiation

Section 2.

Section 3.

Preparation of Application for Housing Rehabilitation Loan

Feasibility Meeting

Section 4.

Section 5.

Section 6.

Preparation of Plans and Specifications; Bidding of Work

Preparation of Contract for Rehabilitation Work

Presentation of Application for Formal Approval

PAGE NO.

DETERMINING WORK TO BE DONE WITH A HOUSING REHABILITATION LOAN

Property Inspection

Consultation with Applicant

Assurances that Rehabilitation Work will be Completed

Section 1.

Section 9.

Section 10.

Section 11.

Responsibility for Inspections of Rehabilitation Work
Inspections for Progress Payments and Final Payment
Certification of Final Inspection

Section 12. Supplemental Inspections

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40

TRUTH-IN-LENDING REQUIREMENTS FOR HOUSING REHABILITATION LOANS

Section 221 (d) (3) Income Limits and Maximum Income of Eligible
Applicants for Housing Rehabilitation Loans

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HOUSING REHABILITATION SERVICES PROGRAM
OF THE CITY OF MADISON

CHAPTER 1 THE HOUSING REHABILITATION SERVICES PROGRAM

INTRODUCTION

Continuing programs of home maintenance and improvement are recognized as being vital to the well-being of the entire Madison community. It is also recognized by the City of Madison that programs designed to conserve and upgrade existing housing on any meaningful scale can only be successful if financial and technical assistance are made available by the City to those otherwise unable to obtain needed help. The Housing Rehabilitation Services Program of the City of Madison is the programmatic expression of the City's commitment to the conservation of its older, basically sound residential areas, and to the needed rehabilitation of existing housing for people of low and moderate income.

The Housing Rehabilitation Services Program is intended to be responsive to the particular needs of the Madison community. Accordingly, the content, policies, procedures and administration of the Program will be subject to continuing review and evaluation; it should be expected, therefore, that changes will be made in the Program from time to time on the basis of operating experience, and as community needs change. All revisions in Program content, policies, procedures and administration will be incorporated either in this Handbook or in subsequent editions of this Handbook.

1. Authority for Housing Rehabilitation Services Program. The Housing Rehabilitation Services Program described in this Handbook was approved by the Common Council of the City of Madison on February 12, 1974, at the request of Mayor Paul R. Soglin. Approval of the Housing Rehabilitation Services Program was given on the basis of the Common Council's findings that: (1) there currently exists in the City of Madison a pressing need to make financial and technical assistance available to property owners of low and moderate income, non-profit housing corporations and non-profit housing cooperatives in order to stimulate voluntary rehabilitation and repair of deteriorating residential structures in the City's older residential neighborhoods; and (2) it is a valid public purpose for the City of Madison to provide such financial and technical assistance, and in the City's best interests to do so within the framework of the policies, procedures and regulations contained in this Handbook.

2.

Scope of the Housing Rehabilitation Services Program. The two major components of the Housing Rehabilitation Services Program are: (1) financial assistance in the form of low-interest housing rehabilitation loans to be made available to eligible property owners throughout the City, on a need basis, to assist them in financing the cost of rehabilitation work needed to bring their properties into compliance with the City of Madison Minimum Housing and Property Maintenance Code and other applicable property rehabilitation standards; and (2)

a program of

technical assistance to be made available to all residential property owners within areas of the City designated as Neighborhood Preservation Districts by the Common Council.

(a) Housing Rehabilitation Loans. In 1974 the Common Council of the City of Madison authorized the establishment of a $225,000 revolving fund to provide the initial funding source for housing rehabilitation loans to be made to eligible property owners under the Housing Rehabilitation Services Program. Further funding of the revolving fund will be considered by the Common Council as the need arises.

Eligibility requirements for housing rehabilitation loans
are set forth in Chapter 2 of this Handbook. The terms and
conditions to which an applicant must agree in order to obtain
a housing rehabilitation loan are set forth in Chapter 3, and
the basis for determining the maximum amount of any single
loan is set forth in Chapter 4.

Housing rehabilitation loans may be made for residential
properties located in any area of the City of Madison.
However, priority in processing and approval of loans will be
given to: (1) eligible applicants whose properties are
located in areas of the City designated as Neighborhood Preserva-
tion Districts by the Common Council; and (2) hardship cases,
irrespective of the location of the property within the City.

(b) Technical Services. The Housing Rehabilitation Services Program
is directed not only to the rehabilitation of individual
residential structures, but also to the overall improvement and
preservation of the City's older residential neighborhoods. For
this reason, in areas of the City designated as Neighborhood
Preservation Districts, various kinds of technical assistance
will be offered to all owners of residential properties, whether
or not they are eligible for housing rehabilitation loans. It
is anticipated that the types of technical services required by
property owners will vary from owner to owner, depending on such
factors as existing physical and financial condition of the
property, the owner's willingness and ability to finance the
cost of needed rehabilitation work, the specific nature of the
owner's interest in the property, etc. Of necessity, therefore,
the City's approach to provision of technical services will be
both comprehensive and flexible. In general, the types of
technical services to be made available by the Department of
Housing and Community Development will include, but not necessarily
be limited to, the following:

(1) At the property owner's request, arranging for inspections to be made by the Building Inspection Division to determine whether or not rehabilitation work is needed to bring the property into compliance with the Minimum Housing and

Property Maintenance Code of the City of Madison and other
applicable local codes and ordinances.

(2) Analyzing inspection reports and advising owners concerning the
extent of needed repairs, if any, and feasible methods for
making needed repairs.

(3) Providing cost estimates of needed rehabilitation work.
(4) Recommending available sources of labor and materials to
do needed rehabilitation work.

(5) Providing the owner with financial counseling services

relative to continued home ownership and property maintenance, or making referrals to other appropriate counseling services. (6) Assistance in securing financing for needed rehabilitation work, if needed by the owner.

(7) Providing the owner with information concerning the
availability of housing rehabilitation loans under the
Housing Rehabilitation Services Program and from other
lending sources.

(8) Assisting owners in preparing applications for housing rehabilitation loans, either under the Housing Rehabilitation Services Program or from other lending sources, as appropriate.

(9) Providing the owner with general guidance in having plans and specifications prepared, and reviewing building improvements plans prepared by or on behalf of the owner.

(10) Assisting the owner in obtaining bids from competent contractors for needed rehabilitation work.

(11) Inspecting rehabilitation work being done, and upon completion.

3. Designation of Neighborhood Preservation Districts. In addition to providing assistance to applicants for housing rehabilitation loans, on a need basis, throughout the City, the Department of Housing and Community Development is also authorized to operate the Housing Rehabilitation Services Program on a neighborhood-wide basis in any area of the City of Madison designated by the Common Council as a Neighborhood Preservation District. Before designating any area of the City as a Neighborhood Preservation District, the Common Council shall direct the City Plan Commission to make a study of the area to determine appropriateness of the area for continued residential use; the condition of existing housing accomodations within such area; the degree to which conventional financing or refinancing of repairs, remodeling and/or rehabilitation of such housing accomodations is available; the proportion of residential structures within the area which are owner-occupied; the location and physical characteristics of the area and other indicators of vitality which indicate that the area may be restored to long-term sound condition through a municipally-assisted program of voluntary rehabilitation activities; and the expressed commitment of area residents, tenants as well as property owners, participate in program activities on a continuing basis.

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