HomeMy WebLinkAboutMAY 2024 IP Brochure
TOWN OF DANBY
COMMUNITY DEVELOPMENT PROGRAM
INCOME PROPERTY
REHABILITATION PROGRAM
Funded By:
New York State Office of Community Renewal
Sponsored By:
Town of Danby
Joel Gagnon, Supervisor
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INCOME PROPERTY HOUSING REHABILITATION PROGRAM
A. INTRODUCTION:
The Town of Danby has recently been awarded a Community Development Block Grant by New
York State. A portion of these funds will go toward the rehabilitation of income properties in the Town.
If you own a two to four-unit income property structure in the Town; it is determined to be substandard
in accordance with the Town’s definition; and at least 51% of the units are occupied by persons/families
low-to-moderate in income (50% for a two-unit structure), financial assistance may be available for the
rehabilitation of property in accordance with the Town’s definition of rehabilitation provided below. The
goal of the rehabilitation program is to remedy code violations and hazardous situations, and to provide
adequate weatherization for income properties occupied or available to persons of low-to-moderate
income. Eligible improvements are included in Section E.
The Town realizes that since the demand for housing rehabilitation may exceed the supply of
funds, priority will be given to properties with the lowest incomes combined with the most urgent
rehabilitation needs, in addition to units tenanted by the frail elderly and disabled. The Town has
developed the following point system to be used when selecting projects for housing rehabilitation
assistance:
HOUSING REHABILITATION PRIORITY POINTS
POINTS
1. INCOME
100% of units tenanted by HHs below Tompkins County Median 4
# of units below 30% of Tompkins County Median 4 per unit
# of units above 30% but below 50% of Tompkins County Median 2 per unit
2. HOUSING CONDITIONS
Severely Substandard 10
Moderately Substandard 5
3. LOCAL PRIORITIES
# units with frail elderly 2 per unit
# units with physical disability and/or traumatic brain injury 2 per unit
The definitions of severely and moderately substandard are included in Section “F”. The points
for prospective applicants will be totaled from the three above categories, and a list will be prepared
ranking all households that have applied that live in substandard properties. Properties will be included
in the rehabilitation program, with the highest scores receiving priority, until the budget is totally
committed.
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B. ELIGIBILITY:
Property Eligibility – Eligible income property owners are those who: (1) (a) own a two to four unit
income property within the Town and which is determined to be substandard by New York State
definitions; (2) are current on all municipal taxes for all properties owned in the Town; (3) have a valid,
current rental permit for the property; (4) are willing to improve their property(ies) to levels which meet
New York State’s and the municipality’s program standards; (5) have the funds or financing to contribute
20% of the repair costs; (6) agree to abide by all of the terms and conditions set forth in the municipality’s
loan documents; and (7) have at least 51% of the units tenanted by low-to-moderate income individuals
and/or households; (8) have no outstanding code violations; and (9) meet the definition of substandard
detailed in Section F. Participating income property owners must agree to an inspection of their property
by the Town’s Code Office, prior to undertaking the rehabilitation work if so desired by the Town.
Ownership and Insurance – Property owners are required to provide a copy of the property’s deed or
abstract to the Town as part of their application and must carry adequate insurance on the property with
the municipality listed as a mortgagee. This cost will be paid with Program funds and will be included in
the loan.
Income Eligibility – Tenants will be determined to be low/moderate income if their gross household
income does not exceed the amounts for household size identified below. Income limits are based on
HUD Section 8 Income Limits and will be periodically increased upwards with HUD’s increase in limits.
Per Section 570.3 of the CDBG regulations, the income of a household will be determined based upon
the current gross household income projected over a 52-week period. The Town will use Annual Income
as reported under the Census long-form for the most recent available census. (Each tenant will be
required to verify their income on an application provided).
Table 2
HOUSING REHABILITATION INCOME LIMITS (4/1/24)
Household Size Gross Income Limit
1 $61,750
2 $70,550
3 $79,350
4 $88,150
5 $95,250
6 $102,300
7 $109,350
8 $116,400
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C. FINANCIAL ASSISTANCE PROGRAM:
Properties with over 51% of the units tenanted by low/moderate income individuals and/or
households are eligible for a deferred loan for 80% of the approved project cost, combined with an
owner contribution of 20% of the approved project cost. Two-unit structures with one unit occupied by
low-to-moderate income individuals and/or households will qualify. It is the Town’s policy to limit the
level of assistance to $25,000 per unit. However, if necessary, under extraordinary circumstances and in
order to address serious code violations or dangerous living conditions, the Town may waive its $25,000
limit. The amount will be determined by the Town to assure the property is no longer substandard upon
completion of rehabilitation. The Town reserves the right to not assist properties where rehabilitation
costs exceed these limits. A mortgage will be placed on all properties receiving rehabilitation assistance
for the term of the dpl and the direct loan.
D. REPAYMENT TERMS:
• DEFERRED PAYMENT LOAN (DPL)
Deferred payment loans are similar to grants. However, they must be repaid to the Town if the
assisted property is sold or transferred prior to the expiration of the program’s affordability period or if
the owner otherwise defaults on their obligations to the Town, including failure to properly maintain the
property during the affordability period. The affordability period will be as follows:
If the property is owned by the original participant for the full affordability period following the
completion of the rehabilitation project, the dpl will be completely forgiven. If the property is sold before
the affordability period expires, or the owner otherwise defaults, the participant will be required to
repay all or a portion of the dpl. A credit for each month prior to default will be provided. The amount
of repayment to the Town will be the difference between the deferred payment loan dollar amount and
the credit. The credit is applied on the anniversary of the dpl.
• OWNER CONTRIBUTION
The Town will require owners to contribute 20% of the repair costs with a cap at $20,000 to the
owner. Owners will need to provide documentation on how they will cover their 20% contribution.
When structuring loan terms under the Income Property Rehabilitation Program, incentives will be
provided to property owners to assure the affordability and continued availability of rehabilitated units
with a special emphasis on affordability and availability to low-to-moderate income persons and families.
80% DEFERRED PAYMENT LOAN (DPL)
Rental Rehabilitation Per Unit
Period of
Affordability
(POA)
* Less Than $15,000 Investment 5 years
* $15,000 - $40,000 Investment 10 years
* Greater than $40,000 Investment 15 years
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In an effort to achieve its goals of affordability and availability, the municipality will adhere to the
following practices for all income property DPLs/loans:
1. Rents must be documented and deemed affordable to persons and families low-to
moderate in income. Rents will be deemed affordable if:
(a) the subject property’s rental unit(s) is occupied by a low/mod household and the current
rent does not exceed the current Fair Market Rate (FMR) as established by HUD. FMR includes utilities
but will be adjusted accordingly for utilities paid directly by the tenant;
(b) the subject property’s rental unit(s) is renting above the FMR and is occupied by a
low/mod household(s), the property owner agrees to immediately reduce the rent for said unit(s) to the
established FMR at the time of signing the agreement to participate in the rehabilitation program.
(c) the unit(s) is renting above the FMR and is occupied by a non-low/mod tenant, the
property owner will not be required to reduce the rent nor be required or allowed to displace the non-
low/mod tenant(s). The property owner agrees to comply with the FMR requirements when and if the
non-low/mod tenant(s) first vacate the property.
(d) the unit(s) is vacant, the property owner agrees to rent to a low/mod household and to
comply with the FMR requirements immediately upon occupancy.
2. The owner must maintain Fair Market Rents for the regulatory period following the
completion of rehabilitation. Rent limits are not to exceed 30% of a tenant’s income, less the approved
Utility Allowance, if applicable. If after initial occupancy and income certification the tenant’s income
exceeds 80% of the Area Median Income (AMI), the rent shall not exceed 30% of the tenant’s income or
fair market rent.
• PROPERTY MAINTENANCE
All assisted properties will need to be properly maintained for five to fifteen years following
completion of the project. Failure to maintain properties may result in default of the dpl loan. This
shall include, but not necessarily be limited to:
1. Town code violations, including the NYS Property Maintenance Code. that are not corrected
within 30 days,
2. Lack of routine property maintenance such as peeling paint, damaged or missing siding, un-
mowed lawns, overgrown and weedy planting beds, broken windows, litter, or an otherwise unkept
appearance.
E. DEFINITION OF REHABILITATION:
Rehabilitation under this program shall mean the correction, repair, and/or replacement of
deteriorating or deteriorated, non-operative or non-functional components in an existing substandard
living unit, when economically feasible, in order to render said unit standard.
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In some cases, rehabilitation may include the purchase, installation or creation of facilities
necessary to provide a normal, decent living environment or as required by code. Rehabilitation does
not include the completion of a shell, new construction or repartitioning, additions, or work for strictly
cosmetic reasons which is not related to the overall substandard nature of the unit or need to correct a
substandard situation. A determination of substandard and standard shall be made in accordance with
the New York State determination of substandard to be used in the municipality's Community
Development Block Grant application. These definitions are included under Section F.
Specifically, rehabilitation includes, but is not limited to, the following:
Code Violations:
Update faulty and/or inadequate electric service wiring and fixtures.
Switch lights from string unit to wall switch where needed.
Electric wall outlets to proper spacing and install GFI’s where needed.
Replace and install electric fixtures where needed.
Replace worn or inadequate plumbing lines.
Proper venting of gas furnace.
Revamp flue to woodstove to eliminate fire hazards.
Install adequately sized (BTU) furnace.
Install adequately sized (Gal.) hot water heater.
Install proper venting in bathrooms and kitchen.
Remove and replace all inadequate and improper floor heaters, gas heaters, etc.
Insulation and Weatherproofing:
Insulate crawl spaces.
Insulate attics to R40.
Insulate sidewalls to R19.
Install storm windows and storm doors.
Install insulated replacement windows and doors, where needed.
Install skirting and roof (insulated) on mobile homes.
Structural:
Rebuild foundation walls to prevent structural damage. Replace inadequate support posts in crawl
space and basement to support house at appropriate distances.
Carpentry:
Remove and replace deteriorated porches/landings and steps.
Install new clapboard where deteriorated on house.
Reroof house, replacing deteriorated roof boards if necessary.
Install new stairways where deteriorated.
Install new subflooring where deteriorated.
Reinforce support joists.
Install new roof rafters where deteriorated.
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Miscellaneous:
Painting of exterior of home (siding, trim, porch, etc.).
Demolition of dilapidated garages and/or porches.
Tree removal, if necessary, to insure safety of home.
Replacement of bath sinks/vanities, bowl, tub/shower units and fixtures, if necessary.
Rehabilitation activities on a case-by-case basis:
The following rehabilitation activities are generally discouraged but may be included under the
definition of rehabilitation if, in the opinion of the Town’s Rehabilitation Specialist, the activity (1) will
remove a blighting influence that negatively impacts on the health or safety of a household’s occupants,
or (2) is necessary to address issues of lead based paint hazards, or (3) is required as a result of certain
agency regulations or requirements such as the State Historic Preservation Office, or (4) will significantly
further the goals of the Program. Additionally, the following activities may be undertaken if, in the
opinion of the Town’s Rehabilitation Specialist, the health and safety of a household’s occupants may be
compromised if the activity is not undertaken. These activities must be reviewed on a case-by-case basis.
Factors such as budget, and household make-up will be taken into account in making a determination of
eligibility.
Drop ceilings Gutters and downspouts
Vinyl siding Detached garages and other detached outbuildings – repair, paint, side
Sheetrocking interior walls Demolition of detached outbuildings
Paneling interior walls Slate roofs or cedar shake roofs
Flooring, carpeting, linoleum
Water-proofing basements
REHABILITATION DOES NOT INCLUDE THE FOLLOWING:
Landscaping – except for flood remediation
Blacktopping driveways
Installation of new kitchen appliances
Washer and dryer
REHABILITATION DOES NOT INCLUDE THE FOLLOWING: (CONT.)
Air conditioners
Skylights
Luxury items (swimming pools, saunas, whirlpools)
Fireplaces
Woodstoves
Dishwashers
Disposals
Room additions
Moving houses to new foundations
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F. DETERMINATION OF SUBSTANDARD:
The following criteria must be used to classify the condition of all housing units to be rehabilitated
with CDBG funding:
Structural Components - Upon structure inspection various components should be categorized as
primary, mechanical or secondary as follows:
Primary Components – Foundation, exterior wall structures, roof structures, floor structures,
columns, joists, and partitions.
Mechanical Components – Windows and doors, plumbing, heating, electrical, wells and septic
systems.
Secondary Components – Siding material, roofing material, porches and exterior stairs and
railings, chimneys, flooring material, ceilings, lighting, ventilation, interior stairs and railings.
Degree of Deficiency – After deficient structural components are classified as primary, mechanical or
secondary, they shall be assessed for the degree of deficiency as follows:
Critical – Component is badly deteriorated, sinking, leaning, non-operative or non-functional, out
of plumb, or unsafe to an extent requiring complete replacement. For example, (1) a complete
electrical rewiring, (2) a complete new roof, (3) a plumbing system which requires extensive
repair or none exists, (4) major repair of exterior structural elements (e.g. walls, sills, floor joists,
rafters, porches, etc.), (5) major repair of unstable or deteriorated foundation walls, or (6) a non-
existent or dysfunctional septic system, a spring-fed well with water of poor quality or quantity.
Major – Component is badly deteriorated and in need of major repair or replacement.
Minor – Component is worn, loose, or cracked and in need of repair.
Sound – Component needs no more than normal maintenance.
Structural Conditions -
Standard – Housing or rental units that are in standard condition, have no major structural
defects, have adequate plumbing facilities, and their appearance does not create a blighting influence.
This condition requires no more than observable, normal maintenance; dwelling units which have no
deficiencies, or only slight observable deficiencies.
Substandard – Housing or rental units that have one or more major structural defects, but can
still be repaired for a reasonable amount. The degree of substandard is either moderate or severe
according to the number of major defects.
• Moderately Substandard – Housing or rental units that have less than three major defects
and can be restored to a standard condition for a reasonable cost.
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• Severely Substandard – Housing or rental units that have three or more major defects or at
least one critical defect and can be restored to a standard condition for a reasonable cost.
• Dilapidated – Units that are determined to be severely substandard to a degree requiring
clearance or buildings which have three or more critical deficiencies that cannot be repaired
to a standard condition for a reasonable amount. In these instances, a local determination
must be made concerning the economic feasibility and the public benefit of such projects.
G. NON-DISCRIMINATION REQUIREMENT:
Prior to provision of assistance, the homeowner will sign an agreement with the Town outlining
the owner's responsibilities and obligations with respect to the assistance. This agreement includes
language that the owner will not discriminate in the sale, rental or financing of said assisted housing on
the basis of race, color, religion, sex, national origin, familial status, and handicap. Although all persons,
in most cases, are prohibited from discriminatory housing practices, program participants will actually
sign a document agreeing to abide by Fair Housing Laws.
H. TAX CONSEQUENCES:
The Town cannot and does not render any opinion or make any representation with respect to
whether the funds provided hereunder are considered taxable income. To determine the tax
consequences of receiving funds under the Program, applicants/participants should contact a tax
specialist or their own accountant.
I. SECTION 504 GRIEVANCE PROCEDURE:
Section 504 of the Rehabilitation Act of 1973 (the “Act”) as amended, prohibits discrimination on
the basis of disability in programs and activities conducted by the U.S. Department of Housing and
Urban Development (HUD) or that receive financial assistance from HUD. The Act provides that no
qualified individual shall, solely by reason of his or her handicap, be excluded from program
participation, including employment, be denied program benefits, or be subjected to discrimination.
The Programs covered by Section 504 include the New York State Community Development Block Grant
Program (CDBG) and the HOME Program. The assistance provided by the program for which you are
applying has been either directly or indirectly provided by HUD and is, therefore, subject to the
requirements of Section 504.
It is the policy of the Town of Danby not to discriminate on the basis of disability. Towards that
end, the Town of Danby has adopted by resolution an internal grievance procedure providing for
prompt and equitable resolution of complaints alleging any action prohibited by Section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794) of the U.S. Department of Health and Human Services
regulations implementing the Act. The subject law and implementing regulations may be examined in
the office of the Supervisor for the Town of Danby. The Supervisor for the Town has been designated
to coordinate the efforts of the Danby with respect to Section 504 compliance. This information can
also be accessed on the World-wide Web at the following address:
http://www.ada.gov/taman2.html#II-8.2000.
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The Town office is located at 1830 Danby Road, Ithaca, NY 14860. The Section 504 Coordinator
can be reached at 607-277-4788.
Any person who believes he or she has been subjected to discrimination on the basis of disability
may file a grievance under the procedure adopted by the Town of Danby by contacting the Town’s
Grievance Coordinator at the number above.
Amanda’s Law
Carbon Monoxide Alarms
Amanda’s Law was named in honor of Buffalo resident Amanda Hansen, a teenage girl who lost her life
to carbon monoxide (CO) poisoning from a defective boiler when sleeping over at a friend’s house in
January 2009.
On February 22, 2010, a new law went into effect in New York to help protect your family from carbon
monoxide poisoning.
The new law requires the following:
• CO alarms must be installed in all new and existing one and two-family dwellings,
multifamily dwellings and rentals having a fuel-burning appliance, system or attached garage.
• The National Fire Protection Association (NFPA) recommends CO alarms be installed in a central
location outside each sleeping area and on every level of the home.
• CO alarms must be listed to comply with UL (Underwriters Laboratories) 2034 or CSA (Canadian
Standards Association) 6.19 and installed in accordance with manufacturer’s instructions.
For more information on CO, visit www.dhses.ny.gov/ofpc
Notice: This information is a summary interpretation of NY Law 2009, Ch. 367 and was prepared as general reference
material only. This summary is not authoritative. For your specific compliance requirements, please refer to the actual
language of NY Law 2009, Ch. 367 or consult legal counsel.
IMPORTANT NOTICE
EQUAL HOUSING
OPPORTUNITY