City of Virginia Beach Dept. of Housing and Neighborhood …€¦ · not exceed the Grant Limit of $8,500.00. The payments on any existing loans (mortgages, equity loans, including

City of Virginia BeachDept. of Housing and Neighborhood PreservationCode Enforcement Division

Section 16-12.4 of the City Code requires a satisfactory Certifi cate of Compliance (C.C.) inspection for any rental dwelling or dwelling unit that is located in a census tract block group designated by City Council as a Rental Inspection District. Since July 1, 2005, 106 block groups have been designated. A map and list of the Rental Inspection Districts are available on the Department of Housing and Neighborhood Preservation’s website (www.vbgov.com/housing) and in the Code Enforcement offi ce.

Procedure for Obtaining a C.C. Inspection

It is the responsibility of the rental property owner to request that a C.C. inspection be conducted.• Contact the Code Enforcement Division at 757-385-4421 (choose option #3) between the hours of • 8 a.m. and 5 p.m., Monday through Friday; or email [email protected] must include the address of the dwelling, owner’s name, the name of the person who will • be meeting the inspector at the inspection site and a contact phone number. An inspection shall be performed within two working days upon receiving a request.•

Rental Inspection Fee (Effective July 1, 2008)

There is a $50 fee for the C.C. inspection of rental units. This fee provides for an initial inspection • and one follow-up re-inspection if needed.Payment must be made prior to the initial inspection. Pre-payment can be made in person at the • Code Enforcement offi ce, by mail or by hand delivery to the Code Enforcement Inspector at the inspection site prior to the inspection. Accepted forms of payment are personal check or money order made payable to City of Virginia • Beach. Cash will not be accepted.If an additional re-inspection is necessary (after the fi rst re-inspection), an additional fee of $50 will • be charged.

Certifi cate of Compliance for Multi-Family Complexes

Owners of multi-family complexes who are seeking an exemption are required to have a sampling of the total number of dwelling units inspected as follows:

• 10% of units (up to 100 units), with a minimum of two (2)• Two (2) additional units must be inspected for every 100 units thereafter (or portion thereof)

Owners of multi-family complexes seeking an exemption will only be charged the inspection fee for a maximum of 10 dwelling units, regardless of the number of units inspected.

Continued on back

Certifi cate of Compliance Inspection Program

Certifi cate of Compliance Inspection ProgramC.C. Inspection Process and Time Limits

Completion of the C.C. inspection will result in one of three statuses:

1. Certifi cate of Compliance: If the initial C.C. inspection reveals no code violations, a Certifi cate of Compliance is issued with a four-year exemption from the rental inspection ordinance. However, if violations of the Virginia Maintenance Code are found during the exemption period, it may result in the exemption being revoked.

2. Temporary Certifi cate of Compliance: Is issued where code violation(s) are found that do not pose a health or safety hazard to an occupant(s). Occupancy of a dwelling is permitted for a time period reasonably necessary to effect correction of the code violation(s). A Notice of Violation will be issued outlining the violation(s) and detailing the time allowed to bring each violation into compliance.

3. Rejection: Is issued where code violation(s) are found that pose a potential threat to the health or safety of the occupant(s) and therefore the dwelling unit is identifi ed as unsafe. A Notice of Violation will be issued outlining the violation(s) and detailing the time allowed to bring each violation into compliance. The dwelling unit cannot be occupied until the violations have been corrected and the property has been re-inspected.

Requirements and Penalties

After being notifi ed by this offi ce, owners of rental dwelling units within the Rental Inspection District are required to:

Register all rental dwelling units located within the Rental Inspection District. Failure to register units 1. shall result in a civil penalty of $50.Obtain a Certifi cate of Compliance Inspection. Owners who fail to obtain an inspection shall be 2. subject to the penalties described in City Code Section 16-11, which is punishable by a fi ne of not more than $2,500.Effect compliance within the time period specifi ed in a Temporary Certifi cate of Compliance. 3. Owners who fail to comply with a notice of violation within the specifi ed time period shall be subject to the penalties described in City Code Section 16-11, which is punishable by a fi ne of not more than $2,500. Each day the violation(s) continue shall be deemed a separate offense.

DHNP DOES BUSINESS IN ACCORDANCE WITH THE FEDERAL FAIR HOUSING LAW AND SECTION 504 PROGRAM ACCESSIBILITY REQUIREMENTS. IT IS ILLEGAL TO DISCRIMINATE AGAINST ANY PERSON BECAUSE OF RACE, COLOR, RELIGION, SEX, HANDICAP, FAMILIAL STATUS, OR NATIONAL ORIGIN.Revised 6/2009

Code Enforcement Contact Information:Municipal Center - Bldg. 18A2424 Courthouse Drive, Virginia Beach, VA 23456Phone: 757-385-4421TDD (for hearing impaired): 757-385-5794Fax: 757-385-5694Email: [email protected]: www.VBgov.com/housing

Section V, Page 1-B-1

CITY OF VIRGINIA BEACH

DEPARTMENT OF HOUSING & NEIGHBORHOOD PRESERVATION (DHNP) (757) 385-5750

EMERGENCY HOME REPAIR PROGRAM

CDBG FUNDS 2010-2011

PURPOSE To provide eligible owners with a one-time only grant (not to exceed $8,500.00) to make emergency repairs to an eligible property. An emergency repair is defined as "any physical improvement, adaptation or modification, which is not of a cosmetic nature and is required to remove imminent health and safety hazards". Improvements required to allow a physically disabled resident to remain in the dwelling are also eligible. For any cost above the grant limit the additional funding for work performed using this program will be in the form of a no-interest deferred loan to be secured by a Deed of Trust. Assistance is provided based on the availability of funding, and is provided one time only to any eligible individual or household. Any household who has received an emergency grant under a previous emergency program administered by the DHNP is not eligible to receive a grant under this program, but may receive assistance in the form of a no-interest deferred loan if eligible, additional restrictions may apply. Assistance will not be provided for any condition that is covered by or will be covered by the homeowner’s insurance policy. ELIGIBLE RECIPIENTS Assistance is available to residents of Virginia Beach whose household's total gross annual income does not exceed eighty percent (80%) of the area median income, adjusted for family size, as established by the U.S. Department of Housing & Urban Development (HUD). [SEE HUD INCOME GUIDELINES]. Household income will be reevaluated every six months until contract is signed. All owners of record on the deed must also be occupants of the eligible property, sign the application, and must have income verified. Assets cannot exceed $75,000.00 (does not include the value of your home), and the applicant(s) cannot own any other real estate.

HUD INCOME GUIDELINES

Number in Household

1 2 3 4 5 6 7 8

80% Median Income

38,200 43,650 49,100 54,550 58,950 63,300 67,650 72,050

Income guidelines effective as of May 14, 2010


EXCEPTION TO OWNERSHIP FOR ACCESSIBILITY IMPROVEMENTS REQUIRED FOR SAFETY Rental households must meet all of the following conditions:

Household income must not exceed 80% HUD income guidelines of the area median income, adjusted for family size, as established by the U.S. Department of Housing & Urban Development (HUD). [SEE HUD INCOME GUIDELINES].

Eligible household member(s) who is/are permanently physically disabled and is/are living in a single family dwelling where emergency repair would make the dwelling more physically accessible and usable. (A written statement from a licensed physician indicating the medical need for the emergency home repairs will be required.)

The owner of the property must be willing to agree in writing to allow the Emergency Repair improvements.

Landlord and tenant must also agree to sign a new 12 month lease with no cost increase in rent to the tenant.

Rent must not exceed the current Fair Market Rent as established by HUD.

Only handicap accessibility and usability improvements such as grab bars, ramps, door widening, lowering counters, vision and/or auditory sensing devices, etc are allowed.

Owner of the property must be responsible for all other improvements. (Example, HVAC replacement would not be allowed with these funds.)

Rental housing unit must not have any uncorrected code violations that could affect the health or safety of the tenants.

Each application will be evaluated on a case-by-case basis and feasibility will be the sole determination of Department of Housing and Neighborhood Preservation.

ELIGIBLE PROPERTIES

Fee Simple, owner-occupied and eligible rental single-family dwellings located in Virginia Beach are eligible properties. Condominiums may only be eligible if determined by the DHNP on a case by case basis.

Trailers and Mobile Homes are eligible provided the Cost of the Rehabilitation does not exceed the grant limit of $8,500.

Properties with Reverse Mortgages are eligible provided the Cost of Rehabilitation does not exceed the Grant Limit of $8,500.00.

The payments on any existing loans (mortgages, equity loans, including all fees and charges, i.e. HOA dues, etc.) using the property as collateral cannot be in arrears at the time that the application is approved and at the time the assistance is provided.

Real estate taxes must be current. City assessment cannot exceed $290,000.00.When the Cost of Rehabilitation requires a no-interest deferred loan then a Title Report is required and shall be provided by DHNP at no cost to the applicant.

NOTE: Properties located in a Clear Zone or Accident Potential Zone I or II, as designated on the most current Air Installations Compatible Use Zones (AICUZ) map, are not eligible for assistance. Also, for property where any portion of the property (not just the house) is in a flood zone, additional restrictions may apply, including proof of flood insurance.


ELIGIBLE ACTIVITIES Funds may only be used for Emergency Home Repair. Funds may not be used for refinancing existing debt or satisfying judgments/liens. Emergency Home Repair may include repairs/replacements/improvements:

To equipment to provide heat in winter (October 1 - May 15) or to provide heat at anytime if "red tagged" by proper authorities. Does not include service calls/routine maintenance (i.e. cleaning furnaces or lighting pilot lights).

To equipment to provide air conditioning in summer (May 16 - September 30) a written statement from a licensed physician stating that air conditioning is medically required, will be required.

To correct damage to distribution pipes resulting in need to have water shut off to house.

To correct Health Department citation for defects to well and/or septic system including equipment.

To correct life threatening electrical hazards.

To correct defective roof/ceiling assembly- life threatening situation only.

To correct non-operable water heater.

To make handicapped accessibility and usability modifications and improvements (evaluated on a case-by-case basis).

To correct sewer leaks, collapse of sewer lines or other conditions that cause sewage to be exposed.

After rehabilitation, the identified imminent health and safety hazards must have been corrected. After-Rehabilitation Value of the property cannot exceed ninety-five percent (95%) of the area median purchase price as established by the FHA 203(b) mortgage limits.

FINANCING TERMS AND CONDITIONS

Change Orders - The Housing Development Program Administrator, in their sole discretion, may approve the provision of additional funds when hidden or latent damage is discovered, and may provide such additional funds in the manner they determine appropriate. Deferred Loan – If the Cost of Rehabilitation requires a no-interest deferred loan, the loan shall not exceed $20,000.00 and be secured by a Deed of Trust. Funds are paid back to the City of Virginia Beach at the time of the owner(s) death, or upon the owner(s) vacating, selling or transferring the deeded property (property must remain the primary residence of the applicants). NOTE: Rental properties are not eligible for a deferred loan.

Grant - An unsecured funding granted to eligible recipients for the specific purpose of making emergency repairs to eligible properties

Loan-To-Value (LTV) – LTV shall not to exceed 95% of the city assessment or 95% of a current appraisal. Homeowner has the option to provide an existing appraisal of the property (not more than 6 months old) at their expense, to be used to determine LTV.

Recording Fees - The homeowner will be responsible for paying the fees associated with recording all the Deeds of Trust. At the time the homeowner signs the rehabilitation contract, he/she will need to provide the DHNP with a money order or certified check payable to the Clerk of Circuit Court.


Subordination of Lien – If a deferred loan (lien) is required, The City of Virginia Beach Department of Housing and Neighborhood Preservation will consider subordinating only those liens for straight refinancing (No Cash Out or Debt Consolidations). This will affect your ability to refinance your property and/or to borrow money using the property as collateral. Applicant must sign the Subordination Policy provided by the DHNP. Title Report - A title search will be conducted by an attorney or a Title Insurance Company to ensure that the applicant has fee simple title to the property (no life estates or heir property), and to determine what, if any, liens and/or judgments are recorded against the property.

DEFINITIONS

Cost of Rehabilitation - the lowest responsive/responsible bid amount received for this project. Rehabilitation- To restore a structure to its former good state of condition or capacity.

Remodeling- To renew; to reconstruct; to alter the style of a structure. Repair – To restore an item to a good or sound condition after decay or damage

NOTE: All financial assistance programs are subject to final review and approval by the Housing Development Program Administrator. Assistance may be denied if the Housing Development Program Administrator determines that the transaction is infeasible or is not in the best interest of the City. The Housing Development Program Administrator also reserves the right to increase the grant amount and/or the loan-to-value ratio on a case-by-case basis. I have read the above program description for assistance and fully understand and agree with the program requirements.

Applicant’s Signature Date


DHNP DOES BUSINESS IN ACCORDANCE WITH THE FEDERAL FAIR HOUSING LAW AND THE SECTION 504 PROGRAM ACCESSIBILITY REQUIREMENTS

IT IS ILLIGAL TO DISCRIMINATE AGAINST ANY PERSON BECAUSE OF RACE, COLOR, RELIGION, SEX,

HANDICAP, FAMILIAL STATUS OR NATIONAL ORIGIN

Effective: July 1, 2010

(Revised051310skp))

Section V, Page 1-D-1



DOWN PAYMENT/CLOSING COST ASSISTANCE PROGRAM

FOR FIRST- TIME HOME BUYERS HOME FUNDS 2010-2011

PURPOSE

To assist current renters so that they may overcome barriers to becoming homeowners in the City of Virginia Beach.

To help insure the success of people assisted under this program when they become homeowners.

The purpose of the subsidy is not to enable the buyer to purchase a more expensive home than they could normally income qualify to purchase. Minimum assistance shall be $1,000.00 and in accordance with program guidelines.

Assistance is provided based on the availability of funding, and is provided one time only to any qualified individual or household.

ELIGIBLE APPLICANTS

To be eligible to participate in this program, the applicant must be a resident of the City of Virginia Beach whose household’s total gross annual income does not exceed eighty percent (80%) of the area median income, adjusted for family size, as established by the U.S. Department of Housing & Urban Development (HUD). SEE HUD INCOME GUIDELINES.

Household assets cannot exceed $75,000.00. The Applicant(s) cannot own any other real estate.

Employees of the City of Virginia Beach Municipal government and Virginia Beach Public School System employees are exempt from any residency requirement.


Number in Household

1 2 3 4 5 6 7 8

80% Median Income

38,200 43,650 49,100 54,550 58,950 63,300 67,650 72,050



ELIGIBLE APPLICATANTS -continued Applicant must be a first-time home buyer (as defined by any one of the following descriptions):

An individual or couple who have not owned a home (excluding a mobile home) during the 3 year period prior to applying for this program.

A single parent - an individual who is unmarried or legally separated from a spouse, and who has custody or joint custody of one or more minor children who live in the household for more that 50% of the time, or who is pregnant, and who does not currently own a home.

PRE-APPLICATION REQUIREMENTS

Applicant(s) must attend a Virginia Housing Development Authority (VHDA) certified first time home buyers class.

VHDA’s online course is not accepted, except for military persons on deployment. The spouse who is not deployed must attend the class in person.

Persons with a disability may request a reasonable accommodation

Attendance of this class must be done before making an offer to purchase a home and certificate(s) of attendance will be required.

Applicant must be pre-approved (not pre-qualified) for a mortgage loan with the financial institution of your choice prior to applying for this program and a pre-approval letter will be required at time of application.

Grossing up of income is not allowed. The income stated on the mortgage application must agree with the income stated on the application for assistance with the DHNP. Household income must be reevaluated every 6 months until loan closing. Please be aware that you are not eligible to apply for assistance under this program if you make an offer to purchase a home (sign a purchase agreement/sales contract), before applying for assistance and receiving your letter of acceptance into the program. ELIGIBLE PROPERTIES

Owner-occupied or vacant single-family homes, town homes or condominiums located in the City of Virginia Beach with an appraised value that does not exceed $315,000 within the current FHA Mortgage Limit.

The Seller of the property must agree to allow both the exterior and the interior of the home to be inspected by the DHNP.

The property must meet the Existing Property Code Standard of the Uniform Statewide Building Code (USBC) in order to receive funds from this program.

It is the buyer’s responsibility to inform the seller of the property about this program and


that the property will be inspected and required to meet certain standards in order for the buyer to receive financial assistance. The seller will be required to sign a Notice to Buyer(s) and Seller(s), acknowledging that they know that HUD funding is assisting with the home purchase.

Properties built prior to January 1, 1978, will be subject to Lead-based Paint Hazard Control Requirements (Title X Regulations). The Seller of the property will be responsible for any cost associated with Lead Based Paint Inspections or removal of any lead-based paint hazards. Additional documentation such as a Clearance Testing Report will be required if the dwelling is found to have lead-based paint.

INELIGIBLE PROPERTIES

Properties purchased by means of a non-qualifying assumption or owner financing.

Any property that is currently rented, unless the renter is the applicant/home buyer. No relocation or dislocation can result from the use of this program.

Any property where the seller is unwilling to allow access for inspection or fails to provide any required documentation for compliance with HUD regulations regarding lead-based paint.

Property where the buyer cannot obtain clear fee simple title.

Any properties located in a Clear Zone or Accident Potential Zone I or II, as designated on the most current Air Installations Compatible Use Zones (AICUZ) map, are not eligible for assistance.

OTHER SPECIAL REQUIREMENTS For property where any portion of the property (not just the house) is in a flood zone, additional restrictions may apply, including proof of flood insurance. Owner will be required to maintain Flood Insurance on the property for the duration of any lien placed on the property by the DHNP.


Co-borrowers who are not part of the applicant’s household are not permitted.

To determine the applicant’s eligibility for this program, the income of all borrowers on the mortgage will have their income included in the household’s total gross annual income. The DHNP does not allow Grossing Up Income for the purpose of qualifying for a mortgage.

All borrowers on the mortgage must complete the Home Ownership Education Class and earn a Certificate of Attendance. A copy of the certificate will be required at the time of application to the DHNP.


Buyer(s) will be required to contribute a minimum of $500.00 or 1% of the purchase price, whichever is greater.

AMOUNT OF ASSISTANCE

Funds for this assistance are provided only in compliance with HUD requirements.

HOME funds and are provided in the form of a no-interest deferred loan up to $30,000 for closing cost and down payment assistance.

The actual amount of assistance will be determined by the DHNP and is based on the amount of subsidy needed to ensure the buyer(s) housing debt ratio does not exceed 33% or be below 25%. This ratio is based on the purchase price of a home that the buyer is income qualified to purchase.

The no-interest deferred loan will be secured by a Deed of Trust and a Promissory Note. Funds are paid back to the City of Virginia Beach at the time of the owner(s) death, or upon the owner(s) vacating, selling or transferring the deeded property (property must remain the primary residence of the applicants).

NOTE: DEFERRED LOAN FUNDS CANNOT RESULT IN CASH BACK TO THE BORROWER(S) AT THE TIME OF CLOSING. CREDIT

Applicants must have good credit. A current credit report will be evaluated.

All judgments, liens and collections must be paid/satisfied.

Bankruptcies must be discharged for 2 years. A written explanation of all negative information may be required.

Having a foreclosure on your credit report will result in your application being denied if the foreclosure is less than 3 years old.

INCOME-TO-DEBT RATIOS

Housing debt ratio cannot exceed 33% of buyer(s) gross monthly income.

Deferred loan will need to be adjusted (reduced) in cases where the housing debt ratio is less than 25% of buyer(s) gross monthly income.

Total debt ratio cannot exceed 43% of buyer(s) gross monthly income. SUBORDINATION OF LIEN The City of Virginia Beach Department of Housing and Neighborhood Preservation will consider subordinating only those liens for straight refinancing (No Cash Out or Debt Consolidations). This will affect your ability to refinance your property and/or to borrow money using the property as collateral. Applicant must sign the Subordination Policy provided by the DHNP. OWNER RESPONSIBILITY FOR CONDITION OF PROPERTY ONCE PURCHASED As an owner purchasing property with City assistance, you are fully responsible for the condition of your house and yard. If, after proper notice, you are unable or unwilling to correct violations of city code, we at our sole discretion may make the no-interest deferred loan due and payable.


CHECKLIST OF MATERIALS RECEIVED BY APPLICANT Please initial next to each item acknowledging that the information has been provided to you in written form and fully explained. 1. City of Virginia Beach Department of Housing and Neighborhood Preservation

Down Payment/Closing Cost Assistance Program - Program Description 2. Notice to Buyer(s) and Seller(s). This form must be signed by the buyer(s) and

seller(s) and attached to the purchase agreement. No purchase agreement will be accepted without this executed form attached.

3. Lead-Based Paint Pamphlets

A. Protect Your Family From Lead In Your Home B. Renovate Right: Important Lead Hazard Information for Families, Child

Care Providers and Schools.

4. Potential For Lead Base Paint Hazards Notice 5. Renovate Right Notice 6. Subordination Policy

ITEMS OF SPECIAL INTEREST TO THE APPLICANT

Please initial next to each statement acknowledging that you fully understand the information being conveyed. 1. The first mortgage when combined with the second mortgage, as well as any

other mortgages, deferred loans, etc., may not result in cash back to the borrower(s).

2. The property must pass an inspection by the DHNP. The inspection is a minimal standards inspection, and does not imply that major systems are working properly or that they will continue to work in the future. It is recommended that the buyer secure an inspection by a professional home inspection company.

3. The applicant is responsible for providing their real estate agent with a copy of this program description. The applicant was also responsible for providing their mortgage lender with a copy of the program description at the time they pre-qualified for a mortgage loan. It is vital that both be aware of the program requirements in order to assist you to qualify for funding under this program.


By signing below, I hereby certify that I have read the above program description for assistance in purchasing a home and fully understand and agree to comply with the program requirements. I understand that my income verification is only good for six months; after that time, my income must be verified again. Furthermore, I understand that if I have not signed a purchase agreement within twelve months from the date of application, my application will be denied and I will be required to start the application process from the beginning. Signature of Applicant Date Signature of Applicant Date

THE DHNP DOES BUSINESS IN ACCORDANCE WITH THE FEDERAL FAIR HOUSING LAW AND THE SECTION 504 PROGRAM ACCESSIBILITY REQUIREMENTS

IT IS ILLEGAL TO DISCRIMINATE AGAINST ANY PERSON BECAUSE OF RACE, COLOR, RELIGION, SEX,



Section V, Page 1-J-1


DEPARTMENT OF HOUSING & NEIGHBORHOOD PRESERVATION

(757) 385-5750

FLEXIBLE HOUSING SUBSIDY PROGRAM

(FUNDING SOURCE DRAGAS GRANT)

Effective July 1, 2010

PURPOSE

To assist low income homeless families or those families in imminent danger of becoming homeless to secure

decent, safe, affordable housing or to remain in their current home by providing temporary rental assistance.

Housing units receiving any type of subsidy through this program must be approved by the Virginia Beach

Department of Housing and Neighborhood Preservation (VBDHNP). Source of this subsidy program is a private

foundation grant. Assistance is provided based on availability of funding, and is given one time only to any family.

ELIGIBLE HOUSEHOLDS

Funds are available to residents of Virginia Beach whose household’s total gross annual income does not exceed

eighty percent (80%) of the area median income, adjusted for family size, as established by the U.S. Department of

Housing & Urban Development (HUD). Only households with children are eligible for this program.

HUD INCOME GUIDELINES (as of May14, 2010)

Number in Household 2 3 4 5 6 7 8

80% Median Income 43,650 49,100 54,550 58,950 63,300 67,650 72,050

In addition to the income requirements, households must meet all of the following requirements:

1. Referral: Must have a written referral from an appropriate City agency or a Virginia Beach non-profit

organization that works with or provides homeless services or housing to homeless persons. The referral

must document the family as homeless or as being in imminent danger of becoming homeless. DHNP

personnel may also make such a referral

2. Residency: Must be a current resident of Virginia Beach and must be able to show acceptable

documentation of residency. Documentation must have a date that precedes the application date, and may

be in the form of a Virginia driver’s license, bank statement, utility bill, lease, child’s school registration or

documentation of registration with a homeless shelter or transitional housing program, with the name of the

applicant listed as a household member. Note: City Agencies and Virginia Beach Non Profit Organizations

making referrals for this program will be required to submit documentation of services and/or residency.

PROGRAM CONDITIONS

1. Families referred to the program must agree to an assessment by DHNP ;personnel.

2. If DHNP recommends approval, the participating family must enter into a Housing Stabilization Plan that

clearly defines objectives that will help the family maintain residency in permanent, sustainable housing.

The Plan will include mandatory meetings and monitoring by DHNP personnel. Failure to achieve the

defined objectives listed in the Housing Stabilization Plan will result in termination of subsidy.

3. Households receiving assistance through the Flexible Subsidy Program may be eligible to receive

assistance under other VBDHNP programs such as the Rental Security/Utility Deposit Program, Tenant

Based Rental Assistance, Housing Choice Voucher and/or Homeless Prevention and Rapid Re-housing

Program (HPRP). Determination of any and all additional housing subsidies shall be the sole decision of

the VBDHNP.


4. Households must be willing to sign a release of information and agree to have a criminal records check for

all household members age 18 or older at the time of application.

INELIGIBLE HOUSEHOLDS

Households above 80% of the median income. Families without a valid referral certifying as to homelessness or

imminent danger of becoming homeless. Households with any member who has a felony conviction for a crime

involving violent behavior or any crime of a sexual nature. Households with any member having been convicted of

welfare fraud .

TYPE OF ASSISTANCE PROVIDED

Subsidy grants are designed to assist a family for an approximate period of three months and may be provided for an

initial maximum dollar amount of $ 5,000. Upon determination of VBDHNP the subsidy grant may be renewed for

an additional period of time not to exceed three months of rental assistance. The nature and level of grants will be

defined in the Housing Stabilization Plan. Subsidy may be used for the following:

Rental assistance

Security deposits (if family does not qualify for the VBDHNP Rental Security Deposit Program)

Utility deposits

Rent arrearages

Delinquent utility bills

Moving Costs

Motel and hotel vouchers (limited)

All payments will be made directly to a third party recipient (generally to landlords and/or utility companies).

ELIGIBLE PROPERTIES

If a family is moving into a new unit, the monthly rent for the unit must not exceed the HUD Fair Market Rent

(FMR), excluding cost of utilities. VBDHNP will not approve a lease if the rent is not reasonable, based on rents

that are charged for comparable unassisted rental units. Property must be inspected by VBDHNP prior to assistance

being provided. For the Flexible Subsidy Program VBDHNP will utilize the HUD Section 8 Housing Quality

Standards. Properties must be located in Virginia Beach.

OCCUPANCY STANDARDS

The number of bedrooms needed by the households will be determined by VBDHNP based on the chart below.

# Bedrooms

# of Persons Minimum

# of Persons Maximum

1

1

2

2

3

4

3

4

6

4

7

8

5

9

10


6 11 12

NOTE: If extenuating circumstances exist that would create a hardship, exceptions will be evaluated on a case by

case basis with final approval being granted by the Housing Program Administrator. The DHNP may grant such an

exception to the established subsidy standards if the DHNP determines the exception is justified by the age sex, sex,

health, handicap, relationship of family members or other personal circumstances. Such exceptions shall be applied

uniformly.

LEASE PROVISIONS

The term of the lease must be for at least 12 months, unless another term is mutually agreed upon by the tenant and

owner, and approved by VBDHNP. All persons residing in the household, regardless of age must be listed on the

lease. Co-signers who are not listed as household members in the determination of eligibility are not allowed. A

copy of the unsigned lease must be provided to VBDHNP for review and approval before assistance can be

provided. Assistance will be denied to a household that enters into a lease without VBDHNP’s prior review and

approval of the lease. Once approval is granted, the client family must provide VBDHNP with a signed copy of the

lease.

Please note that the above lease provision requirements do not apply to those families who are in imminent danger

of becoming homeless and who are receiving grant assistance to remain in their existing home.

NOTE: The Housing Program Administrator reserves the right to waive any non-statutory requirement stated in

this agreement based on any exceptional circumstances affecting a client family.

I have read the above program description for assistance, and my signature below indicates that I understand and

agree to comply with all program requirements. I understand that as part of this requirement I agree to execute a

Housing Stabilization Plan and that failure to meet the goals stated in that Plan will result in the loss of our housing

subsidy. I further understand that I will only receive assistance upon the confirmation of my eligibility and that, if

approved, I may only receive this assistance one time.

______________________________

Signature of Applicant Date

______________________________


VBDHNP DOES BUSINESS WITH THE FEDERAL

FAIR HOUSING LAW AND THE SECTION 504 PROGRAM ACCESSIBILITY REQUIREMENTS

IT IS ILEIGAL TO DISCRIMINATE AGAINST ANY PERSON BECAUSE OF RACE, COLOR, RELIGION, SEX,



Definition of Homeless Households

And Those Households That Are In Imminent Danger of Becoming Homeless

A household will be considered homeless if it meets at least one of the criteria listed below:

1. Sleeping in a place not meant for human habitation such as cars, parks, sidewalks,

abandoned buildings or housing that has been condemned.

2. Sleeping in an emergency shelter.

3. Being released from a hospital or other institution where the stay was not more than 180

days and they met either #1 or #2 above before they entered the institution.

4. Graduating from transitional housing and they met either #1 or #2 before entering

transitional housing.

5. Escaping domestic violence.

A household will be considered in imminent danger of becoming homeless if it meets one of the

following criteria:

1. Sharing the home of others due to loss of housing, economic hardship or a similar reason

and facing eviction within two weeks from such a dwelling unit and no subsequent

residence has been identified and the family lacks the resources and support networks to

obtain housing. This includes housing that has been provided by families or friends.

2. Discharge within 2 weeks from an institution in which the person has been a resident for

more than 180 days (prisons, MH facilities, hospitals).

3. Pending loss of rental housing due to foreclosure of property.

4. Living in motels, hotels, trailer parks or camping grounds due to lack of alternative

adequate accommodations and the family lacks the resources to secure permanent

housing.

5. Expected housing instability (risk of eviction) due to unpaid rent, partial rent payments,

or unpaid utility bills as a result of sudden loss of income, recent medical bills, or other

financial crisis – with no other source to resolve.

6. Meeting two or more of the other risk factors for homelessness delineated on pages 24

and 25 in the HUD Notice of Allocations, Application Procedures and Requirements for

the HPRP Program (issued March 19, 2009).

Section V, Page 1-L-1


CITY OF VIRGINIA BEACH DEPARTMENT OF HOUSING AND NEIGHBORHOOD PRESERVATION (DHNP)


BURTON STATION VILLAGE WATER AND SEWER ASSISTANCE PROGRAM

CDBG FUNDS 2010-2011

PURPOSE To provide eligible homeowners (owner occupants) who live in the Burton Station Village financial assistance to connect their homes to public water and sewer and to properly abandon septic systems and wells. TYPE OF ASSISTANCE A secured forgivable five grant not to exceed $10,000.may be provided. Grant will be forgiven at 20% per year over a five year period provided the property remains in compliance with program requirements. If the cost of the water and sewer connection exceeds the maximum grant a no-interest deferred loan may be provided TERMS AND CONDITIONS Assistance is provided based on the availability of funding, and is provided one time only to any eligible individual or household. The cost for connection to public water and sewer of properties with Reverse Mortgages cannot exceed the grant limit of $10,000.00. City assessment cannot exceed $290,000.00. After rehabilitation the After-Rehabilitation Value of the property cannot exceed ninety-five percent (95%) of the area median purchase price as established by the FHA 203(b) mortgage limits. FINANCIAL TERMS AND CONDITIONS

Deferred Loan –Funds are paid back to the City of Virginia Beach at the time of the owner(s)

death, or upon the owner(s) vacating, selling or transferring the deeded property (property must

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Burton Station Village Water and Sewer Assistance Program Page 2 of 3


remain the primary residence of the applicants). The deferred loan is secured by a Deed of Trust (lien) and a Promissory Note.

Secured Grant – Funding that is forgiven at 20% per year over 5 years to eligible

recipients for the specific purpose of connecting the dwelling to public water and sewer, including the service line from the tap/meter to the dwelling and the proper abandonment of septic system. Loan-To-Value (LTV) – LTV shall not to exceed 90% of the city assessment or 100% of a current

appraisal. Homeowner has the option to provide an existing appraisal of the property (not more than 6 months old) at their expense, to be used to determine LTV.

Recording Fees - The homeowner will be responsible for paying the fees associated with

recording all the Deeds of Trust. At the time the homeowner signs the rehabilitation contract, he/she will need to provide the DHNP with a money order or certified check payable to the Clerk of Circuit Court.

Subordination of Lien - The City of Virginia Beach Department of Housing and Neighborhood Preservation will consider subordinating only those liens for straight refinancing (No Cash Out or Debt Consolidations). This will affect the property owner’s ability to refinance and/or borrow money using the property as collateral. Applicant must sign the Subordination Policy Acknowledge Form provided by the DHNP. Title Report - A title search will be conducted by an attorney or a Title Insurance Company to ensure that the applicant has fee simple title to the property (no life estates or heir property),

and to determine what, if any, liens and/or judgments are recorded against the property. Applicant must have clear title to the property receiving assistance.

The payments on any loans (mortgages, equity loans, Homeowner’s insurance, Real estate taxes) must be current at the time of application and at the time assistance is provided.

ELIGIBILITY/RECIPIENTS Assistance is provided based on the availability of funding and is available to owner occupants of Burton Station Village (boundary defined in the Strategic Growth Area plan for Burton Station) whose household’s total gross annual income does not exceed eighty percent (80%) of the area median income, adjusted for family size, as established by the U.S. Department of Housing & Urban Development (HUD). [SEE HUD INCOME GUIDELINES]. All owners of record on the deed must also be occupants of the eligible property, sign the application, and must have income verified. Assets cannot exceed $75,000.00 (does not include the value of your home), and the applicant(s) cannot own any other real estate.


Number in Household

1 2 3 4 5 6 7 8

80% Median Income

38,200 43,650 49,100 54,550 58,950 63,300 67,650 72050

Income guidelines effective as of May 14, 2010(are subject to change)

ELIGIBLE PROPERTIES



Existing Fee Simple, owner-occupied single-family dwellings located in Burton Station Village in Virginia Beach are eligible properties. Dwelling must be structurally feasible for the connection to public water and sewer. Rental properties are not eligible for this program. ELIGIBLE REPAIRS

Service line connection to city water

Service line connection to sanitary sewer

Cost to abandon existing septic system and wells

Note: Other fees and costs to connect to city water and sewer will apply and must be paid. Please contact Public Utilities’ Business Division at 385-4171 for information.

INELIGIBLE FEES/COST CDBG Funds may not be use to pay for any of the following: Connection to Public Water- includes one-time fees such as tap fee, MCO tap fee, water meter

And Resource Recover Fee (DFU). These fees are not eligible for payment with CDBG funds.

Connection to Sanitary Sewer- includes tap and connection fees; and DFU fees.

NOTE: All financial assistance programs are subject to final review and approval by the Housing Development Administrator. Assistance may be denied if the Housing Development Administrator determines that the transaction is infeasible or is not in the best interest of the City. The Housing Development Administrator also reserves the right to increase the grant amount and/or the loan-to-value ratio on a case-by-case basis. I have read the above program description for assistance and fully understand and agree with the program requirements.




IT IS ILLIGAL TO DISCRIMINATE AGAINST ANY PERSON BECAUSE OF RACE, COLOR, RELIGION, SEX,



(Drafted 05/13/10)



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Section V, Page 1-C-1


DEPARTMENT OF HOUSING & NEIGHBORHOOD PRESERVATION (DHNP)

(757) 385-5750

FACADE PROGRAM

CDBG FUNDS 2010-2011 PURPOSE To assist eligible homeowners rehabilitate the exterior of their property and improve the energy efficiency of the dwelling. Financial assistance is provided in the form of a deferred loan and forgivable energy grant for eligible households whose dwellings require a minimum of $1,000.00 in

the cost of rehabilitation for the Correction of Exterior Code Violations. This program provides

assistance for the exterior rehabilitation of the property; it does not allow for remodeling.

Assistance is provided based on the availability of funding, and is provided one time only to

any eligible individual or household.

ELIGIBLE OWNERS

Assistance is available to Home Owners in Virginia Beach whose household’s total gross

annual income does not exceed eighty percent (80%) of the area median income, adjusted for family size, as established by the U.S. Department of Housing & Urban Development (HUD). [SEE HUD INCOME GUIDELINES.]

All owners of record on the deed must also be occupants of the eligible property, sign the application, and must have income verified.

Household income will be reevaluated every six months until contract is signed.

Household assets cannot exceed $75,000.00 (does not include the value of your home), and the applicant(s) cannot own any other real estate.

NOTE: Households that have received assistance under any repair or reconstruction

program administered by DHNP, with the exception of the Emergency Home Repair Program,

are not eligible to receive any assistance under this program.


Number in Household

1 2 3 4 5 6 7 8

80% Median Income

38,200 43,650 49,100 54,550 58,950 63,300 67,650 72,050


ELIGIBLE PROPERTIES

Fee-simple owner-occupied single-family dwellings located in Virginia Beach are eligible

2

properties.

Condominiums may only be eligible if determined by the DHNP on a case by case basis.

The payments on any existing loans (mortgages, equity loans, including all fees and charges, i.e. HOA, etc.) using the property as collateral cannot be in arrears at the time of application and at the time the assistance is provided.

Real estate taxes must be current. City assessment cannot exceed $290,000.00. Title to the property (recorded Deed) must be held by the applicant


Trailers and mobile homes are not eligible.

Property with a reverse mortgage is not eligible. Llfe Estates or heir property are not

eligible. A Title Report is required and shall be provided by the DHNP at no cost to the applicant. A minimum of $1,000.00 in cost of rehabilitation as determined by the DHNP, to correct all exterior code violations and to improve the energy efficiency of the dwelling is required.

NOTE: Properties located in a Clear Zone or Accident Potential Zone I or II, as designated on

the most current Air Installations Compatible Use Zones (AICUZ) map, are not eligible for

assistance. Also, for property where any portion of the property (not just the house) is in a

flood zone, additional restrictions may apply, including proof of flood insurance.

ELIGIBLE ACTIVITIES Funds shall be used for the correction of exterior code violations on the eligible dwelling and energy efficiency improvements; and may be used for additional rehabilitation including: repairs or replacement to fences and accessory structures and removal of hazardous trees or parts thereof as determined by the DHNP on a case by case basis.

INELIGIBLE ACTIVITIES

Funds may not be used for refinancing existing debt or satisfying judgments/liens).

Funds may not be used for remodeling

AFTER-REHABILITATION VALUE

After rehabilitation, the exterior of the dwelling must meet local housing codes and the Department of Housing & Neighborhood Preservation Rehabilitation Standards.

The After-Rehabilitation Value of the property cannot exceed ninety-five percent (95%) of the area median purchase price as established by the FHA 203(b) mortgage limits.

PROGRAM REQUIREMENTS AND CONDITIONS If the property has any existing non-structural code violations, such as inoperable vehicle(s);

grass or weeds in excess of 10"; junk, litter or debris, the property owner must eliminate these violations prior to assistance being provided. Failure to correct/remove these violations within 30 days of application may result in application for assistance being denied.

Owner must agree to have both the interior and exterior of the dwelling inspected for lead-based paint if built prior to 1978. The lead inspection will be provided by the DHNP at no

3

cost to the Applicant. Failure to allow a full interior and exterior inspection for lead based paint will result in an immediate denial of assistance.

A qualified exterminator will conduct a termite/moisture inspection in order to determine if there is any termite or moisture damage, which impacts the feasibility of the project. The termite/moisture inspection will be provided by the DHNP at no cost to the Applicant.


Deferred Loan – Façade projects are eligible for a deferred loan at zero percent interest not to

exceed $35,000.00. The deferred loan will be secured by a Deed of Trust (lien) recorded against the property and a Promissory Note signed by the owner(s) of the property. All funds provided by the deferred loan must be repaid immediately upon sale, transfer of the property or if the owner(s) who received the assistance no longer resides in the property as their principal residence, or upon death.

Energy Grants- Energy grants will only be provided in conjunction with other non energy

repairs. For energy only repairs, a deferred loan will be required. A secured grant, forgivable

over 5 years is available for approved rehabilitation that will improve the energy efficiency of the dwelling. Windows, doors, siding, caulking are example of possible items that are eligible for the energy grant. The grant will be forgiven at 20% per year over a five year period. The energy grant will be secured by a Deed of Trust recorded against the property and a Promissory Note signed by the owner(s) of the property. Any unforgiven portion of funds provided by the energy grant must be repaid immediately upon sale, transfer of the property or if the owner(s) who received the assistance no longer resides in the property as their principal residence or upon death.

The total amount of the deferred loan and energy grant shall not exceed the lesser of $40,000.00 or 95% of the available mortgage equity. If the lowest responsive/responsible bid amount received for this project exceeds $40,000.00 the property will be considered infeasible to participate in the program. The Housing Development Programs Administrator may make an exception to this limit.

Loan-To-Value (LTV) – LTV shall not to exceed 95% of the city assessment or 95% of a current

appraisal. Homeowner has the option to provide an existing appraisal of the property (not more than 6 months old) at their expense, to be used to determine the Loan –To-Value.

Recording Fees - The homeowner will be responsible for paying the fees associated with recording

all Deeds of Trust. At the time the homeowner signs the rehabilitation contract, he/she will need to provide the Department of Housing & Neighborhood Preservation with a money order or certified check payable to the Clerk of Circuit Court.

Subordination of Lien - The City of Virginia Beach Department of Housing and Neighborhood

Preservation will consider subordinating only those liens for straight refinancing (No Cash Out or

Debt Consolidations). This will affect the applicant’s ability to refinance the property and/or to

borrow money using the property as collateral. Applicant must sign the Subordination Policy

provided by the DHNP.

Title Report - A title search will be conducted by an attorney or a Title Insurance Company to ensure

that the applicant has fee simple title to the property (no life estates or heir property), and to

determine what, if any, liens and/or judgments are recorded against the property.

4

NOTE: All financial assistance programs are subject to final review and approval by the Housing Development Programs Administrator, in their discretion, based on the totality of the situation. Assistance will be denied if the Housing Development Programs Administrator determines that the transaction is infeasible or is not in the best interest of the City. The Housing Development Programs Administrator also reserves the right to increase the loan-to-value ratio on a case-by-case basis or waive any non statutory program requirement. I have read the above program description for assistance and fully understand and agree with the program requirements. Applicant’s Signature Date Applicant’s Signature Date

DHNP DOES BUSINESS IN ACCORDANCE WITH THE FEDERAL

FAIR HOUSING LAW AND THE SECTION 504 PROGRAM ACCESSIBILITY REQUIREMENTS

IT IS ILLIGAL TO DISCRIMINATE AGAINST ANY PERSON

BECAUSE OF RACE, COLOR, RELIGION, SEX, HANDICAP, FAMILIAL STATUS OR NATIONAL ORIGIN


(Revised05/12/10skp))

City of Virginia Beach

Department of Housing and Neighborhood Preservation

First Time Homebuyer Program Participant Agreement

To The Recapture Provisions For HOME Funds

The Department of Housing and Neighborhood Preservation (DHNP) utilizes HOME funds from

the U. S. Department of Housing and Urban Development (HUD), to provide down payment and

closing cost assistance to income eligible households to become first time homebuyers.

Assistance is provided in the form of a twenty-five (25) year deferred payment loan. The loan

carries a zero per cent (0%) interest rate, and requires no monthly payments. Repayment of

the HOME funds is required when one of the following occurs: the property is sold, transferred,

or the property is no longer occupied as the buyer’s principal residence. The amount of HOME

funds to be repaid to the DHNP is dependent upon when the event triggering repayment

occurs. HOME regulations require the homeowner to own and occupy the HOME assisted unit

for a minimum time period (known as the Period of Affordability) based upon the amount of

HOME funds provided for down payment and closing cost assistance. DHNP is required to

repay the HOME funds to HUD if the Period of Affordability, as required in the HOME

regulations 24 CFR 92.254 (4), is not met. The terms for the Period of Affordability are as

follows:

Period of Affordability

Homeownership assistance (HOME Funds) Minimum Period of Affordability

Under $15,000 5 years

$15,000 to $40,000 10 years

Over $40,000 15 years

Recapture in the Case of a Voluntary Sale, Involuntary Sale or Foreclosure

During the Period of Affordability

If the period of affordability is not met by the homeowner due to a voluntary or involuntary

sale or a foreclosure of the HOME assisted property, the following shall apply in accordance

with 24 CFR 92.254 (5)(B) (ii)(3), which requires that the DHNP recapture all or a portion of the

HOME assistance to the homebuyer utilizing the Share Net Proceeds method as shown in the

example below:

EXAMPLE OF THE SHARED NET PROCEEDS METHOD OF RECAPTURE/REPAYMENT

Formula for Calculating Shared Net Proceeds

HOME Investment X Net proceeds = HOME amount to be recaptured HOME Investment + Owner Investment Homeowners Investment X Net proceeds = Amount to homeowner HOME Investment + Homeowner Investment

Definitions

HOME Investment – the amount of assistance to the homebuyer using HOME funds.

Homeowner Investment – down payment and capital improvements made by the owner since

purchase. Note: closing costs paid by the borrower at the time of the initial purchase are not

counted. Also, any gift funds, rebate financing, concessions, etc., provided by any party other

than the borrower at the time of the initial purchase are not counted.

Net proceeds – the sales price minus the loan repayment (other than HOME funds) and closing

costs.

Capital Improvements – see Attachment A

Example of Amounts Utilized for Calculating the Shared Net Proceeds

HOME Investment $30,000.00 Down Payment $ 1,024.48 Capital Improvements + 0.00 Homeowner Investment $ 1,024.48 HOME Investment + Homeowner Investment $31,024.48 Sales Price $149,800.00 Loan Repayment (other than HOME funds) - 129,500.00 Closing Costs - 9,213.00 Net Proceeds $ 11,087.00 $30,000.00 X $11,087.00 = $10,754.39 (HOME amount to DHNP) $31,024.48 $1,024.48 X $11,087.00 = $332.61 (Amount to Homeowner) $31,024.48 The above example has a positive amount for the net proceeds. If there are no net proceeds, then no HOME funds are repaid to DHNP and the homeowner also receives no funds from the

sale. Also, it will be the policy of the DHNP not to recapture more from the shared net proceeds than the original HOME investment provided at the time of purchase.


After the Period of Affordability

After the period of affordability has expired the DHNP will not use the shared net proceeds method to recapture the HOME investment in the property. When a sale (voluntary, involuntary or foreclosure) occurs after the required period of affordability, the entire amount of HOME funds provided by the DHNP are due and payable to the DHNP. If the funds are not fully repaid, HNP will turn the matter over to the City Attorney’s office for appropriate action for collection of funds. All reasonable attempts will be made to recapture the full amount of HOME funds due and payable to HNP.

Default in Terms of Loan Agreement

Other than due to the sale (voluntary, involuntary or foreclosure) of the property, failure to maintain the property as their principal residence at any time prior to the repayment of the HOME funds is a default of the loan terms, and as such, the full amount of the HOME funds are immediately due and payable to the DHNP. The shared net proceeds method of repayment will not be utilized for a default of this nature, regardless as to when the default occurs (within the period of affordability, or after the period of affordability has expired). Failure of the homeowner to immediately repay the entire amount of HOME funds to the DHNP will result in the matter being turned over to the city attorney’s office for action, including, if necessary, foreclosure on the property.

[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

ACKNOWLEDGMENT

I have read the above Recapture of HOME funds policy and fully understand that should I

receive assistance from the City, this policy will require the repayment or recapture of the

HOME funds provided to me in order to purchase the property that I have selected for

homeownership. These provisions will apply in any sale, transfer, failure to occupy the

property or in the event of a foreclosure.

_____________


______________________


STATE OF VIRGINIA

CITY OF VIRGINIA BEACH, to-wit:

The foregoing instrument was acknowledged before me on this day of ,

2010, by . He/She/They is/are personally known to

me or has/have produced _ as identification.

_________________

Notary Public

Notary ID#: ______________________

My Commission Expires: ______________________

STATE OF VIRGINIA





_________________

Notary Public

Notary ID#: ______________________


ATTACHMENT A CAPITAL IMPROVEMENTS

For purposes of recapturing HOME funds utilizing the Shared Net Proceeds method, a capital

improvement is defined as “a permanent addition to the home (residential structure) that increases the

value of the home (residential structure)”. Improvements to accessory structures such as detached

garages are not counted as capital improvements. Repairs to property and the maintenance of it are

not considered capital improvements. Listed below are examples of eligible and ineligible capital

improvements:

Eligible Improvements Ineligible Improvements

Room additions to the residential

structure

New windows

New roof - quality of shingles must be

upgraded (i.e. from 20 year to 30 year,

architectural tab shingles)

New HVAC system - must upgrade to

energy efficient system

Adding vinyl siding

Adding hardwood floors (not

laminate/floating floors)

Upgrading countertops from Formica to

granite or other high-end material (i.e.

quartz, marble, etc.)

Upgrading cabinetry

Painting

Window repair

Roof repair

HVAC repairs

Repairing/replacing vinyl siding

Replacing carpet

Repairing cabinetry

Plumbing repairs

Electrical repairs

Fencing

Decks/patios

Swimming pools/hot tubs

In order for the capital improvements to be counted in the formula for calculating shared net proceeds,

you must contact the Department of Housing and Neighborhood Preservation (DHNP) when you make

the eligible improvements. An inspector from the DHNP will need to verify that the work was done (this

will require before and after photographs). You will also be required to provide a copy of the work

order and receipt of payment for the work along with a copy of your canceled check or credit card bill to

verify payment. Failure to allow the DHNP to verify/inspect the work and or to provide the necessary

paperwork and proof of payment will result in the capital improvement not being counted.

Also, please be advised that the entire cost of the eligible capital improvement will not be counted due

to the fact that the dollar amount spent on an eligible capital improvement does not equate to a dollar-

for-dollar increase in assessed/appraised value. The value of any capital improvement claimed will be

based on the increase in the assessed value of the home attributed to those capital improvements as

determined by the City of Virginia Beach Real Estate Assessor’s Office, or based on the increase in the

appraised value of the home attributed solely to the capital improvements as determined by a licensed

appraiser. The cost of the appraisal will be at the expense of the homeowner.

X:\programs\rehab\globalrehabfiles\forms\recapture of HOME fundspolicyacknowledgment.doc Effective: July 1, 2010

Section V, Page 1-K-1



(757) 385-5750

ASSISTANCE THROUGH THE

HOMELESS PREVENTION AND RAPID RE-HOUSING

PROGRAM (HPRP)

EFFECTIVE – JULY 1, 2010

PURPOSE

To assist low income individuals or families who are homeless and/or those in imminent danger

of becoming homeless to secure decent, safe and affordable housing or to remain in their current

residence by providing temporary rental assistance in the form of vouchers and/or the payment

for other associated expenses. Rental housing units receiving any type of assistance through this

program must be approved by the Department of Housing and Neighborhood Preservation

(DHNP).

ELIGIBLE HOUSEHOLDS

Funds are available to residents of Virginia Beach whose household’s total gross annual income

does not exceed fifty percent (50%) of the area median income, adjusted for family size, as

established by the U.S. Department of Housing & Urban Development (HUD). For this

program both individuals and households with children are defined as families and are

eligible for this program.


Number in Household 1 2 3 4 5 6 7 8

50% Median Income 23,900 27,300 30,700 34,100 36,850 39,600 42,300 45,050


In addition to the income requirements, families must meet all of the following requirements:

1. Referral: Must have a written referral from an appropriate City agency or a Virginia

Beach non-profit organization that works with or provides homeless services or housing

to homeless persons. The referral must document the family as homeless or as being in

imminent danger of becoming homeless. At its option, the DHNP can make such a

referral.

2. Household Needs - In addition to either being homeless or at risk of losing its housing,

the household must meet the following criteria: (a) no appropriate subsequent housing

options have been identified; and (b) the household lacks the financial resources and

support networks needed to obtain immediate housing or remain in its existing housing;


and (c) but for this assistance the family would continue to be or become homeless.

3. Residency: Must be a current resident of Virginia Beach and must be able to show

acceptable documentation of residency. Documentation must have a date that precedes

the application date, and may be in the form of a Virginia driver’s license, bank

statement, utility bill, lease, child’s school registration or documentation of registration

with a homeless shelter or transitional housing program, with the name of the applicant

listed as a household member. Note: City Agencies and Virginia Beach Non Profit

Organizations making referrals for this program will be required to submit documentation

of services and/or residency.

PROGRAM CONDITIONS

1. There is no formalized waiting list for this program. This is a “targeted population” program

designed to assist homeless families and/or those in imminent danger of becoming homeless.

The only families potentially eligible for this program are those referred to DHNP through

the previously described process. At its option, DHNP may establish additional targeting

preferences. The number of referrals accepted will be dependent upon available budget. Once

an established budget threshold is reached, referral processing will cease. Whenever possible,

unsuccessful HPRP applicants will be advised of opportunities in other housing programs.

2. Once referred to the program, an applicant family will undergo a subsidy assistance review

by the DHNP along with an initial assessment. If determined eligible, a recommendation will

be made for the family for either homelessness prevention or rapid re-housing based on the

family’s needs. The provision of assistance will only be made if it is determined that such

aid will result in the family being able to achieve and sustain a stable housing status.

The decision is final and cannot be appealed.

3. If financial assistance is recommended, the participating family must enter into a Housing

Stabilization Plan that clearly defines objectives that will help the family maintain residency

in permanent, sustainable housing. The Plan will include mandatory meetings and monitoring

by DHNP personnel. A family’s success in meeting the Stabilization Plan will be

reviewed at least every three months by DHNP. Failure to achieve the defined

objectives listed in the Plan will result in loss of subsidy. Families must be recertified as

to eligibility every three months.

4. Households must be willing to sign a release of information and agree to have a criminal

records check for all household members age 18 or older at the time of application.

.


Households above 50% of the median income. Families without a valid referral certifying as to

homelessness or imminent danger of becoming homeless. Families unable to prove Virginia

Beach residency. Households with any member who has a felony conviction for a crime


involving violent behavior, welfare fraud or any crime of a sexual nature.

PROGRAM DESIGN - DIRECT RENTAL ASSISTANCE

Grants under HPRP may be used to assist families with their direct rental housing needs in the

following categories:

1. Rent arrearages of up to six months

2. Utility arrearages of up to six months

3. Rental security deposits

4. Utility deposits

5. Moving and storage expenses

6. Short term rental assistance of up to 3 months

7. Medium term rental assistance (in voucher form) for periods ranging from 4 to 18 months

8. Motel and hotel vouchers for up to thirty days (while waiting to occupy a unit that has

been identified)

All payments will be made directly to a third party recipient.

PROGRAM DESIGN - SERVICES

Clients selected for participation in the HPRP may also be eligible for services that contribute to

a family remaining in stable and sustainable housing. These services include but are not limited

to case management, outreach and engagement, housing search and placement, legal services and

credit repair services. The need for any of these services shall be determined and included as part

of the Housing Stabilization Plan.

OCCUPANCY STANDARDS

For those clients receiving HPRP voucher assistance, the number of bedrooms needed by the

households will be determined by VBDHNP based on the chart below.

# Bedrooms # of Persons Minimum


1

1

2

2

3

4

3

4

6

4

7

8

5

9

10

6

11

12


NOTE: If extenuating circumstances exist that would create a hardship, exceptions will be

evaluated on a case by case basis with final approval being granted by the Administrator. The

DHNP may grant an exception to the established subsidy standards if the DHNP determines the

exception is justified by the age sex, sex, health, handicap, relationship of family members or

other personal circumstances. Such exceptions shall be applied uniformly.

ELIGIBLE PROPERTIES

Whether remaining in their current unit or moving into a new home, the monthly rent for the

housing must not exceed the HUD Fair Market Rent (FMR), excluding cost of utilities. This is a

programmatic requirement for assistance provided under both homelessness prevention and rapid

re-housing. VBDHNP will not approve a lease if the rent is not reasonable, based on rents that

are charged for comparable unassisted rental units. Property must be inspected by VBDHNP

prior to assistance being provided. The unit must meet the inspection standards utilized by the

Virginia Beach Housing Choice Voucher Program. As with the rent reasonableness test, the

inspection is a requirement for assistance provided under both homelessness prevention and

rapid re-housing.

MEDIUM-TERM VOUCHER ISSUANCE

Medium-term length vouchers of four to eighteen months will not be issued to a family unless

the household representative attends a scheduled briefing, completes necessary forms and signs the voucher. When an applicant is selected for participation in the HPRP Program’s medium-

term vouchers, the newly issued voucher is valid for a maximum period of 60 days from the date

of issuance, with no extensions.

If a tenant locates a unit, and the owner is willing to lease the unit under the program, the

voucher holder must request DHNP approval to lease the unit. To utilize the voucher, the holder

must submit a Request for Tenancy Approval to DHNP, a copy of the proposed lease, and a copy

of all other required documents. Documents must be submitted during the specified term of the HPRP Housing Voucher. The lease submitted for approval must also include the Tenancy

Addendum. The Tenancy Addendum is the same document as required under the Section 8 HCV

Program with appropriate modifications to reflect its use for HPRP. Additionally, the unit must

pass an inspection per the requirements of the above referenced Eligible Properties Section.

LEASE PROVISIONS FOR MEDIUM-TERM VOUCHERS

The length of the initial lease must be for at least 12 months, unless another term is mutually

agreed upon by the tenant and owner, AND approved by DHNP. All persons residing in the

household, regardless of age must be listed on the lease. Co-signers who are not listed as

household members in the determination of household eligibility are not allowed. A copy of the

unsigned lease must be provided to DHNP for review and approval before assistance can be


provided. Assistance will be denied to a household that enters into a lease without DHNP’s prior

review and approval of the lease.

These lease requirements do not apply to clients receiving homelessness prevention assistance

and who will be remaining in their current home.

EXECUTION OF HOUSING ASSISTANCE PAYMENT CONTRACT FOR MEDIUM-TERM VOUCHER HOLDERS Once the DHNP has verified the unit is acceptable and the lease has been approved, the DHNP

will execute a Housing Assistance Payment (HAP) Contract with the owner and authorize the

tenant and the landlord to execute the lease and Tenancy Addendum. In the HAP Contract for HPRP assistance, the owner agrees to lease a specified dwelling unit to a specified eligible

household, and the DHNP agrees to make monthly housing assistance payments to the owner on

behalf of the tenant. Continuation of these payments is subject to recertification of the family at

the required three month intervals. With necessary modifications, the HAP Contract for the HPRP Program is in the same format as

the HAP agreement used for the Section 8 HCV Program. It is clearly understood through that

agreement that termination of the HAP for cause by DHNP results in a concurrent cancellation of

the lease and the end of all rental subsidy payments. Additionally, failure of the tenant to meet

the terms of their Housing Stabilization Plan will be cause for termination of the HAP Contract.

ADDITIONAL PROGRAM REQUIREMENTS

In addition to this Program Description, the Department of Housing and Neighborhood

Preservation has developed procedural guidelines which further define operations of the HPRP in

Virginia Beach. These procedures speak to such subjects as methods for determining client

eligibility, establishment of targeting preferences, setting standards for the type and level of

financial assistance and the ways to gauge the client’s progress in meeting goals under the

Housing Stabilization Plan. Rental assistance provided with HPRP funds may vary markedly

from the more formula driven Housing Choice Voucher Program and may include such things as

step down subsidies. All families entering the HPRP Program will receive a copy of these

procedural guidelines and will be expected to comply with all requirements specified in them.

RIGHT TO A HEARING

If you are approved as a participant, you have the right to request an informal hearing in certain

situations if you disagree with the decisions made by DHNP staff. An informal hearing is a

session in which you and DHNP personnel meet or conduct a telephone conference call to

discuss the circumstances about your case. There are also situations in which you cannot request

an informal hearing. You cannot request a hearing to appeal initial denial of your

application to receive assistance under HPRP.


NOTE: The Housing Program Administrator reserves the right to waive any non-statutory

requirement stated in this agreement based on any exceptional circumstances affecting a

client family.

PARTICIPANT AGREEMENT TO HPRP PROGRAM STANDARDS AND

REQUIREMENTS:

I have read the above program description for assistance, and my signature below indicates that I

understand and agree to comply with all program requirements. I understand that as part of this

requirement I agree to execute a Housing Stabilization Plan and that failure to meet the goals

stated in that Plan will result in the loss of any housing subsidy which may be approved for my

household. I further understand that I will only receive assistance upon the confirmation of my

eligibility and that, if approved, I may only receive this assistance one time.

______________________________


______________________________



FAIR HOUSING LAW AND THE SECTION 504

PROGRAM ACCESSIBILITY REQUIREMENTS

IT IS ILLEGAL TO DISCRIMINATE AGAINST ANY PERSON















following criteria:










housing.









Section V, Page 1-G-1


DEPARTMENT OF HOUSING & NEIGHBORHOOD PRESERVATION (DHNP)

(757) 385-5750

HOME REPAIR PROGRAM

HOME /CDBG/CDBG-R FUNDS 2010-2011

PURPOSE To provide a no-interest deferred loan and potential energy grant for home repairs in order to improve the physical quality of the home, the neighborhood, and the long-term value and affordability of the housing. After rehabilitation the dwelling must meet local housing codes and the

Department of Housing and Neighborhood Preservation Rehabilitation standards. A minimum of

$1,000.00 in cost of rehabilitation as determined by the DHNP, to correct all code violations and

energy efficiency improvements is required. Exclusions: This program provides assistance for

the rehabilitation of the property; it does not allow for remodeling. Assistance is provided

based on the availability of funding, and is provided one time only to any eligible individual or

household.

ELIGIBLE OWNERS

Assistance is available to Home Owners of Virginia Beach whose household’s total gross

annual income does not exceed eighty percent (80%) of the area median income, adjusted for family size, as established by the U.S. Department of Housing & Urban Development (HUD), at the time of application. [SEE HUD INCOME GUIDELINES].

Household income will be reevaluated every six months or until contract is signed.

All owners of record on the deed must also be occupants of the eligible property, sign the application, and must have income verified.

Applicant(s) cannot own any other real estate. Household assets cannot exceed $75,000.00 (does not include the value of your home).

Homeowner and/or property must meet all other program requirements as determined by the HNP

NOTE: Households that have received assistance under any repair or reconstruction

program administered by the DHNP, with the exception of the Emergency Home Repair

Program, are not eligible to receive any assistance under this program.



Number in Household

1 2 3 4 5 6 7 8

80% Median Income

38,200 43,650 49,100 54,550 58,950 63,300 67,650 72,050


ELIGIBLE PROPERTIES

Fee-simple owner-occupied single-family dwellings located in Virginia Beach are eligible properties.

Condominiums may only be eligible if determined by the DHNP on a case by case basis.

Trailers and mobile homes are not eligible.

The payments on any existing loans (mortgages, equity loans including all fees and charges, i.e. HOA, etc.) using the property as collateral cannot be in arrears at the time that the application is approved and at the time assistance is provided.

No property with a reverse mortgage is eligible. Real estate taxes must be current. City assessment cannot exceed $290,000.00. Title to the property (recorded Deed) must be

held by the applicant (life estates or heir property are not eligible).

A Title Report is required and shall be provided by the DHNP at no cost to the applicant.

NOTE: Properties located in a Clear Zone or Accident Potential Zone I or II, as designated on

the most current Air Installations Compatible Use Zones (AICUZ) map, are not eligible for

assistance.

For a property where any portion of the property (not just the house) is in a flood zone,

additional restrictions may apply, including proof of flood insurance. Flood insurance must

be maintained on the property for the entire time that the DHNP lien is against the property.

ELIGIBLE ACTIVITIES Funds may be used for the rehabilitation of the owner occupied single-family dwelling. Other on–site improvements to bring the property into code compliance and for the safety and security of the dwelling may be made as determined solely by the DHNP. Illegal structures are not eligible are not eligible for repair. Rehabilitation may include the following activities:

Correction of interior and exterior Code Violations

Energy efficiency improvements

General Home Repairs as determined by the DHNP Rehabilitation Standards

Handicapped Accessibility and Usability Improvements

Improvements that will reduce the future costs of exterior maintenance, or that remove blighting or unsafe conditions

Note: Replacement of existing appliances is eligible except for: washer, dryer, refrigerator


and stand alone microwave, and window air conditioning units

AFTER-REHABILITATION STANDARDS AND VALUE After rehabilitation, the dwelling must meet local housing codes and the Department of Housing & Neighborhood Preservation Rehabilitation Standards. The After-Rehabilitation Value of the property cannot exceed ninety-five percent (95%) of the area median purchase price as established by the FHA 203(b) mortgage limits.

PROGRAM REQUIREMENTS AND CONDITIONS

If the property has any existing non-structural code violations, such as inoperable vehicle(s);

grass or weeds in excess of 10"; junk, litter or debris, the property owner must eliminate these violations prior to assistance being provided. Failure to correct/remove these violations within 30 days of written notice may result in application for assistance being denied.

Owner must agree to have both the interior and exterior of the dwelling inspected for lead-

based paint if built prior to 1978. The lead inspection will be provided by the DHNP at no cost to the Applicant.

A qualified exterminator will conduct a termite/moisture inspection in order to determine if

there is any termite or moisture damage, which impacts the feasibility of the project. The termite/moisture inspection will be provided by the DHNP at no cost to the Applicant.

Owner must agree to have all rooms/areas of the dwelling inspected by the DHNP

Construction Specialist.


Change Orders - The Housing Development Programs Administrator, in their sole discretion, may approve the provision of additional funds when hidden or latent damage is discovered, and may provide such additional funds in the manner they determine appropriate.

Deferred Loan - a no-interest deferred loan to be secured by a Deed of Trust and a Promissory Note for the cost of repairs. The amount of the deferred loan shall not exceed $75,000.00. The Program Administrator may make an exception to this limit, especially in the case where handicapped accessibility improvements are being made. The DHNP Loan Funds are paid back to the City of Virginia Beach at the time of the owner(s) death, or upon the owner(s) vacating, selling or transferring the deeded property (property must remain the primary residence of the applicants).

NOTE: Households who have received assistance under any repair or

reconstruction program, with the exception of the Emergency Home Repair

Program, are not eligible to receive any assistance under this program.

Energy Grants- Energy grants of up to $10,000 will only be provided in


conjunction with other non energy repairs. For energy only repairs, a deferred

loan will be required. A secured grant, forgivable over 5 years is available for approved rehabilitation that will improve the energy efficiency of the dwelling. Windows, doors, siding, insulation, and replacement of old heating/cooling systems are example of possible items that are eligible for the energy grant. The grant will be forgiven at 20% per year over a five year period. The energy grant will be secured by a Deed of Trust recorded against the property and a Promissory Note signed by the owner(s) of the property. Any unforgiven portion of funds provided by the energy grant must be repaid immediately upon sale, transfer of the property or if the owner(s) who received the assistance no longer resides in the property as their principal residence or upon death.

The total amount of the deferred loan and grant shall not exceed $80,000.00. If the lowest responsive/responsible bid amount received for this project exceeds $80,000.00 the property will be considered infeasible. The Housing Development Programs Administrator may make an exception to this limit, especially in the case where handicapped accessibility and usability improvements are being made. Funds are paid back to the City of Virginia Beach at the time of the owner(s) death, or upon the owner(s) vacating, selling or transferring the deeded property (property must remain the primary residence of the applicants

Loan-To-Value (LTV) – LTV shall not to exceed 95% of the city assessment or 95% of a current appraisal. Homeowner has the option to provide an existing appraisal of the property (not more than 6 months old) at their expense, to be used to determine the Loan –To-Value.

Recording Fees - The homeowner will be responsible for paying the fees associated with recording all Deeds of Trust. At the time the homeowner signs the rehabilitation contract, he/she will need to provide the Department of Housing & Neighborhood Preservation with a money order or certified check payable to the Clerk of Circuit Court.

Subordination of Lien - The City of Virginia Beach Department of Housing and Neighborhood Preservation will consider subordinating only those liens for straight

refinancing (No Cash Out or Debt Consolidations). This will affect the applicant’s ability

to refinance the property and/or to borrow money using the property as collateral. Applicant

must sign the Subordination Policy provided by the DHNP.

Title Report - A title search will be conducted by an attorney or a Title Insurance Company

to ensure that the applicant has fee simple title to the property (no life estates or heir

property), and to determine what, if any, liens and/or judgments are recorded against the property.

NOTE: All financial assistance programs are subject to final review and approval by the Housing Development Programs Administrator, in their discretion, based on the totality of the situation.

Assistance will be denied if the Housing Development Programs Administrator determines that the transaction is infeasible or is not in the best interest of the City. The Housing Development Programs Administrator also reserves the right to increase the loan-to-value ratio and any other non statutory program requirement on a case-by-case basis.


I have read the above program description for assistance and fully understand and agree with the program requirements. Signature of Applicant Date Signature of Applicant Date





(Revised051310skp))



Section V, Page 1-A-1



(757) 385-5750

OPTIONAL RELOCATION PROGRAM – EFFECTIVE JULY 1, 2010

(CDBG FUNDS)

PURPOSE

To reduce the effect of financial hardships suffered by low or moderate-income tenants or owner

occupants who are temporarily or permanently displaced from their housing unit by Code

Enforcement or other city agency action due to unsafe and or hazardous living conditions.

Assistance is provided based on the availability of funding and is provided one time only to

any individual or household.

INCOME ELIGIBILITY REQUIREMENTS


does not exceed eighty percent (80%) of the area median income, adjusted for family size, as

established by the U.S. Department of Housing & Urban Development (HUD). SEE HUD

INCOME GUIDELINES.


Number in Household 1 2 3 4 5 6 7 8

80% Median Income 38,200 43,650 49,100 54,550 58,950 63,300 67,650 72,050


ELIGIBLE TENANTS

All of the tests below must be met in order to make a finding of eligibility:

Eligibility is limited to tenants who are temporarily or permanently displaced from their

housing due to the existence of unsafe conditions as determined by Code Enforcement or

other city agent.

The owner is unwilling or unable to or fails to make the necessary repairs within the time

specified by Code Enforcement.

The tenant has no alternative housing arrangements (i.e. living with family or friends).

The unsafe conditions were not, in the judgment of the Code Enforcement Inspector, or other

city agent, caused by the tenant, the tenant’s family or guests, or co-occupants. The

following will be assumed to be caused by the tenant unless contrary evidence is available:

1) Failure to maintain required utilities.

2) Unsanitary conditions due to lack of cleaning or fulfilling of tenant responsibilities.

3) Vermin infestation due to unsanitary conditions caused by the tenant.

4) Damage to the interior such as holes in walls, fixtures ripped from walls, damage due

to improper use of appliances, etc.

The tenant was a lawful occupant of the housing unit for at least 90 days prior to the initial

notification by Code Enforcement or other city agency. The ninety-day residency

restriction will not apply to persons living in hotels/motels that are being utilized as

weekly or monthly residences.


If the tenant is relocated permanently, the new dwelling is determined decent and safe.

The following will disqualify an otherwise eligible tenant:

If the tenant moves out of the unit without giving the property owner time to make the

required repairs within the time frame allowed by Code Enforcement.

If the property owner had started eviction proceedings against the tenant prior to the date the

owner was served notice of the code violations.

Unlawful occupancy - a person is considered to be an unlawful occupant if the person has

been ordered to move by a court of competent jurisdiction prior to the initial notification by

Code Enforcement or other city agency, or is determined by the city to be a squatter who is

occupying the property without the permission of the owner and otherwise has no legal right

to occupy the property under state law.

If upon notification by Code Enforcement, a property owner finds damages caused by the

tenant that are the reason for the condemnation, and subsequently evicts the tenants for such

damages.

ELIGIBLE OWNERS

All of the tests below must be met in order to make a finding of eligibility:

Owners who are temporarily or permanently displaced from their housing due to an

unsafe condition as determined by Code Enforcement or other city agency.

Correction of the unsafe conditions are not covered under the homeowner’s insurance

coverage

The unsafe conditions were not, in the judgment of the Code Enforcement Inspector, or

other city agency, caused by the following:

1) Failure to maintain required utilities.

2) Unsanitary conditions due to lack of cleaning.

3) Vermin infestation due to unsanitary conditions caused by the owner.

The owner is financially unable to afford repairs as determined by DHNP.

The owner does not qualify for assistance under existing DHNP rehabilitation programs,

or the unit is infeasible for rehabilitation.

If the owner is permanently relocated, the new dwelling is determined to be decent and

safe as determined by a DHNP Code Enforcement Inspector or other city agency.

The following will disqualify an otherwise eligible owner:

The owner refuses to apply for assistance under a DHNP housing repair program.

The owner applies for a housing repair program and qualifies, but refuses to follow through

with the process in a timely manner.

The owner receives payment from their homeowner’s insurance company to correct the

unsafe conditions.


Properties located in a Clear Zone as designated on the most current Air Installations Compatible

Use Zones (AICUZ) map.


TIME FRAME TO APPLY FOR BENEFITS

Tenants or owner occupants must apply and provide all documentation required by DHNP no

later than 40 consecutive calendar days after the date Code Enforcement or other city agency

condemned the property, or declared the property not fit for habitation. On the forty-first day

after the date on the condemnation notice, tenants/owners are not eligible to apply for relocation

benefits.

BENEFITS

Eligible applicants may qualify for a relocation grant up to $3,000.00 to pay for rent, security

deposit, utility connection fees (water/sewer and electric only), and the moving and/or storage of

household furnishings and belongings. Assistance will only be provided for two (2) consecutive

months, or for a maximum of $3,000.00, whichever occurs first. Payment of benefits will not be

made until the eligible tenants or owner occupants provide all required

information/documentation to DHNP, and provide proof of securing a unit that meets the

Existing Property Code Standard of the Uniform Statewide Building Code (USBC) as

determined by a Code Enforcement Inspector or other approve source of inspection. Such

documentation may be in the form of a lease, or a letter from the property owners stating rental

terms and conditions. Payments for rent, security deposit, utility deposit(s) and storage facilities

are made directly to the property owner/manager, utility company and/or storage facility. Level

of benefits shall be a defined amount based on the actual lost value or excess costs that the

tenants have suffered due to the need to relocate. Determination of benefits shall be made by the

program administrator.

Temporary Displacement - persons not permanently displaced who must immediately move to

other accommodations for a limited period of time while repairs are made to the condemned unit,

or persons who must move because the unit is unsafe for them to remain, as determined by Code

Enforcement, may be eligible for benefits to assist in providing temporary relocation. Benefits

for temporary relocation shall be determined by DHNP on a case-by-case basis, and shall not

exceed two (2) consecutive months, or a maximum of $3,000.00, whichever occurs first. If

repairs are not made and the person is unable to move back into the dwelling, DHNP shall deduct

any payment for temporary displacement/relocation from the $3,000.00 relocation grant.

Multiple Occupants Of A Condemned Unit - when two or more occupants of a condemned

unit move to separate replacement units, each occupant is entitled to a reasonable prorated share

of the optional relocation benefit, as determined by DHNP. If DHNP determines that two or

more occupants maintained separate households within the same dwelling, each would be

entitled to separate relocation payments. Such proof of separate households would be canceled

rent checks and income tax returns. If such proof cannot be provided, each tenant will be given a

prorated share of the optional relocation grant.

NO DUPLICATION OF PAYMENTS

DHNP will not provide a subsidy to a person or persons that would duplicate another payment

the person receives under federal, state or local assistance programs. DHNP is not required to

conduct an exhaustive search for such other payments. It is only required to avoid creating a

duplication based on the DHNP’s knowledge at the time a payment under the optional relocation

program is made. Persons receiving Optional Relocation benefits from DHNP shall not be


eligible to also receive assistance from the Department of Social Services’ Housing Emergency

Program (HEP), which is also federally funded without a written exception from the program

administrators as to the hardship which will require a subsidy from both departments. Persons

receiving optional relocation benefits from DHNP shall not be eligible to simultaneously receive

assistance under DHNP’s Rental Security/Utility Deposit Program (household cannot receive

financial assistance under the Optional Relocation Program and Rental Security/Utility Deposit

Program for the same circumstance/situation unless a written exception is provided by the

program administrator as to the nature of the hardship and the need for the additional subsidy. In

both of these instances, the evaluation for the need of the additional subsidy shall be the sole

responsibility of the program administrator and their decision shall be final.

Based upon a review of personal circumstances, the program administrator may waive for

good cause any non-statutory requirement of this program description.

Payments under this program shall not duplicate any payment made by the tenant/homeowner’s

insurance. Failure to disclose payments received under ones renter or homeowner’s insurance to

cover the same expenses paid by DHNP shall be considered as fraud.

Persons who receive benefits under this program are still eligible to apply for the Section 8

Program (if the waiting list is open), or to rent a subsidized housing unit.

I have read the above program description and fully understand and agree with the program

requirements.



DHNP DOES BUSINESS WITH THE FEDERAL




BECAUSE OF RACE, COLOR, RELIGION, SEX,


Section V, Page 8-1



RECAPTURE PROVISIONS FOR HOME FUNDS

Homeownership Program

DHNP utilizes HOME funds to provide deferred loans at zero per cent for down payment and

closing cost assistance to income eligible households to become first time homebuyers. In

order to be complainant with the HOME regulations 24 CFR 92.254 (4) a period of affordability

based on the amount of HOME funds invested is required. HNP will use the following terms for

the period of affordability:


Homeownership assistance HOME amount per unit

Minimum period of affordability


$15,000 to $40,000 10 years


Recapture in the Case of Voluntary Sale, Involuntary Sale or Foreclosure




with 24 CFR 92.254 (5)(B)(ii)(3), which requires that HNP recapture all or a portion of the HOME

assistance to the homebuyer utilizing the Share Net Proceeds method.

Shared Net Proceeds- The net proceeds from the sale or foreclosure of the property will be

calculated and divided proportionally as follows:

HOME Investment X Net proceeds = HOME amount to be recaptured

HOME Investment + Owner Investment

Homeowners Investment X Net proceeds = Amount to homeowner

HOME Investment + Homeowner Investment

Section V, Page 8-2

By using the Shared Net Proceeds method to calculate recapture of HOME funds, if there are insufficient funds returned to HNP to cover the amount of HOME funds invested, there will be no requirement under the HOME regulations for HNP to repay any shortage of funds to the HOME account. Also it will be the policy of HNP not to recapture more from the sale proceeds than the original HOME investment provided at the time of purchase.

Repayment of HOME Funds in the Case of Voluntary Sale, Involuntary Sale or Foreclosure After the Period of Affordability Has Been Met

After the period of affordability has expired HNP will not use the shared net proceeds method to recapture the HOME investment in the property.

When a sale (voluntary, involuntary or foreclosure) occurs after the required period of affordability, the entire amount of HOME funds provided by HNP are due and payable to HNP. If the funds are not fully repaid, HNP will turn the matter over to the City Attorney’s office for appropriate action for collection of funds. All reasonable attempts will be made to recapture the full amount of HOME funds due and payable to HNP.


Other than due to the sale (voluntary, involuntary or foreclosure) of the property, failure to maintain the property as their principal residence at any time prior to the repayment of the HOME funds is a default of the loan terms, and as such, the full amount of the HOME funds are immediately due and payable to HNP. The shared net proceeds method of repayment will not be utilized for a default of this nature, regardless as to when the default occurs (within the period of affordability, or after the period of affordability has expired). Failure of the homeowner to immediately repay the entire amount of HOME funds to HNP will result in the matter being turned over to the city attorney’s office for action, including, if necessary, foreclosure on the property.

Section V, Page 8-3



First Time Homebuyer Program Participant Agreement

To The Recapture Provisions For HOME Funds

The Department of Housing and Neighborhood Preservation (DHNP) utilizes HOME funds from

the U. S. Department of Housing and Urban Development (HUD), to provide down payment and

closing cost assistance to income eligible households to become first time homebuyers.

Assistance is provided in the form of a twenty-five (25) year deferred payment loan. The loan

carries a zero per cent (0%) interest rate, and requires no monthly payments. Repayment of

the HOME funds is required when one of the following occurs: the property is sold, transferred,

or the property is no longer occupied as the buyer’s principal residence. The amount of HOME

funds to be repaid to the DHNP is dependent upon when the event triggering repayment

occurs. HOME regulations require the homeowner to own and occupy the HOME assisted unit

for a minimum time period (known as the Period of Affordability) based upon the amount of

HOME funds provided for down payment and closing cost assistance. DHNP is required to

repay the HOME funds to HUD if the Period of Affordability, as required in the HOME

regulations 24 CFR 92.254 (4), is not met. The terms for the Period of Affordability are as

follows:


Homeownership assistance (HOME Funds) Minimum Period of Affordability


$15,000 to $40,000 10 years






Section V, Page 8-4

with 24 CFR 92.254 (5)(B) (ii)(3), which requires that the DHNP recapture all or a portion of the

HOME assistance to the homebuyer utilizing the Share Net Proceeds method as shown in the

example below:

EXAMPLE OF THE SHARED NET PROCEEDS METHOD OF RECAPTURE/REPAYMENT

Formula for Calculating Shared Net Proceeds

HOME Investment X Net proceeds = HOME amount to be recaptured HOME Investment + Owner Investment Homeowners Investment X Net proceeds = Amount to homeowner HOME Investment + Homeowner Investment

Definitions

HOME Investment – the amount of assistance to the homebuyer using HOME funds.

Homeowner Investment – down payment and capital improvements made by the owner since

purchase. Note: closing costs paid by the borrower at the time of the initial purchase are not

counted. Also, any gift funds, rebate financing, concessions, etc., provided by any party other

than the borrower at the time of the initial purchase are not counted.

Net proceeds – the sales price minus the loan repayment (other than HOME funds) and closing

costs.

Capital Improvements – see Attachment A

Example of Amounts Utilized for Calculating the Shared Net Proceeds

HOME Investment $30,000.00 Down Payment $ 1,024.48 Capital Improvements + 0.00 Homeowner Investment $ 1,024.48 HOME Investment + Homeowner Investment $31,024.48 Sales Price $149,800.00 Loan Repayment (other than HOME funds) - 129,500.00 Closing Costs - 9,213.00 Net Proceeds $ 11,087.00

Section V, Page 8-5

$30,000.00 X $11,087.00 = $10,754.39 (HOME amount to DHNP) $31,024.48 $1,024.48 X $11,087.00 = $332.61 (Amount to Homeowner) $31,024.48 The above example has a positive amount for the net proceeds. If there are no net proceeds, then no HOME funds are repaid to DHNP and the homeowner also receives no funds from the sale. Also, it will be the policy of the DHNP not to recapture more from the shared net proceeds than the original HOME investment provided at the time of purchase.


After the Period of Affordability

After the period of affordability has expired the DHNP will not use the shared net proceeds method to recapture the HOME investment in the property. When a sale (voluntary, involuntary or foreclosure) occurs after the required period of affordability, the entire amount of HOME funds provided by the DHNP are due and payable to the DHNP. If the funds are not fully repaid, HNP will turn the matter over to the City Attorney’s office for appropriate action for collection of funds. All reasonable attempts will be made to recapture the full amount of HOME funds due and payable to HNP.


Other than due to the sale (voluntary, involuntary or foreclosure) of the property, failure to maintain the property as their principal residence at any time prior to the repayment of the HOME funds is a default of the loan terms, and as such, the full amount of the HOME funds are immediately due and payable to the DHNP. The shared net proceeds method of repayment will not be utilized for a default of this nature, regardless as to when the default occurs (within the period of affordability, or after the period of affordability has expired). Failure of the homeowner to immediately repay the entire amount of HOME funds to the DHNP will result in the matter being turned over to the city attorney’s office for action, including, if necessary, foreclosure on the property.

[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

Section V, Page 8-6

ACKNOWLEDGMENT

I have read the above Recapture of HOME funds policy and fully understand that should I

receive assistance from the City, this policy will require the repayment or recapture of the

HOME funds provided to me in order to purchase the property that I have selected for

homeownership. These provisions will apply in any sale, transfer, failure to occupy the

property or in the event of a foreclosure.

_____________


______________________


STATE OF VIRGINIA





_________________

Notary Public

Notary ID#: ______________________


STATE OF VIRGINIA

Section V, Page 8-7





_________________

Notary Public

Notary ID#: ______________________


ATTACHMENT A CAPITAL IMPROVEMENTS

For purposes of recapturing HOME funds utilizing the Shared Net Proceeds method, a capital

improvement is defined as “a permanent addition to the home (residential structure) that increases the

value of the home (residential structure)”. Improvements to accessory structures such as detached

garages are not counted as capital improvements. Repairs to property and the maintenance of it are

not considered capital improvements. Listed below are examples of eligible and ineligible capital

improvements:

Eligible Improvements Ineligible Improvements

Room additions to the residential

structure

New windows

New roof - quality of shingles must be

upgraded (i.e. from 20 year to 30 year,

architectural tab shingles)

New HVAC system - must upgrade to

energy efficient system

Adding vinyl siding

Adding hardwood floors (not

laminate/floating floors)

Upgrading countertops from Formica to

granite or other high-end material (i.e.

quartz, marble, etc.)

Upgrading cabinetry

Painting

Window repair

Roof repair

HVAC repairs

Repairing/replacing vinyl siding

Replacing carpet

Repairing cabinetry

Plumbing repairs

Electrical repairs

Fencing

Decks/patios

Swimming pools/hot tubs

In order for the capital improvements to be counted in the formula for calculating shared net proceeds,

you must contact the Department of Housing and Neighborhood Preservation (DHNP) when you make

the eligible improvements. An inspector from the DHNP will need to verify that the work was done (this

Section V, Page 8-8

will require before and after photographs). You will also be required to provide a copy of the work

order and receipt of payment for the work along with a copy of your canceled check or credit card bill to

verify payment. Failure to allow the DHNP to verify/inspect the work and or to provide the necessary

paperwork and proof of payment will result in the capital improvement not being counted.

Also, please be advised that the entire cost of the eligible capital improvement will not be counted due

to the fact that the dollar amount spent on an eligible capital improvement does not equate to a dollar-

for-dollar increase in assessed/appraised value. The value of any capital improvement claimed will be

based on the increase in the assessed value of the home attributed to those capital improvements as

determined by the City of Virginia Beach Real Estate Assessor’s Office, or based on the increase in the

appraised value of the home attributed solely to the capital improvements as determined by a licensed

appraiser. The cost of the appraisal will be at the expense of the homeowner.

X:\programs\rehab\globalrehabfiles\forms\recapture of HOME fundspolicyacknowledgment.doc Effective: July 1, 2010

Section V, Page 8-9

REPAYMENT/RECAPTURE POLICY FOR NON-PROFITS

The DHNP utilizes federal funds (CDBG, HOME, ESG, HOPWA, etc.) to provide forgivable

loans to nonprofit organizations for acquisition and/or rehabilitation projects. Repayment of

federal funds is required when one of the following occurs: the property is sold, transferred,

foreclosed, failure to complete the project or to maintain compliance with the affordability

requirements found under the contract agreement. If any of these cases occurs, full repayment of

the federal funds is immediately due and payable to the City of Virginia Beach Department of

Housing and Neighborhood Preservation.

The City of Virginia Beach Department of Housing and Neighborhood Preservation has adopted

HUD’s terms for the period of affordability listed below:

ACTIVITY

MINIMUM PERIOD

OF AFFORDABILITY

IN YEARS

Rehabilitation or acquisition of existing housing per unit amount of HOME funds:

Under $15,000

5

$15,000 to $40,000

10

Over $40,000

15

New Construction or acquisition of newly constructed housing

20

The Deed of Trust and Promissory Note will incorporate the following clause to ensure

compliance and enforcement if the nonprofit organization fails to adhere to the contract

agreement.

Repayment/recapture - All repayment/recapture funds resulting from failure to complete

the project or to maintain compliance with affordability requirements must be remitted to

the City of Virginia Beach for disposition by the City. It is understood and agreed that in

the event that the BORROWER sells the property securing repayment of the Note at any

time before the balance has been forgiven as provided in the Note, the entire original

principal amount shall become immediately due and payable out of the Net proceeds

from the sale. For the purposes of the Note, the term Net Proceeds shall mean the sales

price minus (a) the payoff of loans and other amounts having priority over the lien of the

Deed of Trust securing repayment of the Note, and any (b) closing costs. If the Net

Proceeds from the sale of the property at its fair market value are insufficient to pay the

principal amount of the Note in full, the city shall forgive repayment of the amount of the

Note in excess of the Net Proceeds.

Section V, Page 8-10


Section V, Page 1-I-1


DEPARTMENT OF HOUSING AND NEIGHBORHOOD PRESERVATION

SUBSTANTIAL REHABILITATION AND RECONSTRUCTION

PROGRAM

FY 2010-2011

PURPOSE

To provide affordable financing for the substantial rehabilitation (over $25,000) or reconstruction of

an existing home in order to provide safe, decent , sanitary and affordable housing for low and

moderate income households whose homes have been determined to need extensive rehabilitation or

reconstruction.

ELIGIBLE OWNERS


does nots exceed eighty percent of the area median income, adjusted for family size, as established

by the Department of Housing & Urban Development (HUD). See Attachment HUD Income

Guidelines

ELIGIBLE PROPERTIES

Owner occupied single family homes located in the city of Virginia Beach. Property must have been

occupied by the applicant for at least 180 days prior to application. Title to the property must be

held by the applicant (no heir property or lifetime rights). The property must be declared

economically and/or structurally infeasible for rehabilitation under other existing DHNP

rehabilitation programs. The property must be a build able site, and must be able to meet all required

city of Virginia Beach development requirements and/or State Health Department requirements for

On Site Sewage Disposal. There must be no liens, judgements, delinquent city fees, taxes or

delinquent utilities on the property. Real estate taxes must be up to date. If there is an existing

mortgage, the cost feasibility must be evaluated to see if the substantial rehabilitation or

reconstruction can be done within the HUD unit subsidy limits. City assessed value of the property

can not exceed $150,000. Each site must be evaluated on a case by case basis. The availability

of this program does not guarantee that assistance can be provided.

NOTE: Properties located in a Clear Zone or an Accident Potential Zone or in a noise zone

with greater than 75 l dn as designated on the most current AICUZ map are not eligible for

substantial rehabilitation or reconstruction.

ELIGIBLE ACTIVITIES

Funds may be used for the substantial rehabilitation of the dwelling. Refinancing is only available

within the regulations of the HOME program and must be evaluated on a case by case basis.

Eligible rehabilitation activities include but are not limited to: elimination of code violations, safety

hazards, abatement of lead base paint, accessibility improvements, reduction of exterior

maintenance, energy efficiency improvements, modernization of plumbing, electrical, HVAC


systems. Dwelling must be able to meet code after substantial rehabilitation. If rehabilitation cost

exceed 70% of the value

of the structure, the structure may be considered for demolition and reconstruction. This must be

evaluated on a case by case basis.


Subsidy shall include all grant, loan, legal and other cost associated with providing a substantially

rehabilitated or reconstructed dwelling. The amount of HOME funds that may be invested on a per

unit basis may not exceed the per unit dollar limit established under section 221(d)(3)(ii) of the

National Housing Act (12 U.S.C. 1715(d)(3)(ii).

Grant- funds for the demolition of the existing infeasible structure, site clearing, site plan and

moving expenses and storage of furnishing/personal possessions shall be a forgivable grant, forgiven

at 20% per year for 5 years.

Loan Term- maximum term of any loan shall not exceed 30 years

Interest Rate- shall be on a sliding scale based on household income at the time of application

Income/Interest rates: 61%-80% of AMI- 6%

51%-60% of AMI- 5%

31%-50% of AMI-4%

30% or lower of AMI- 3%

An amortized loan will be secured by a Deed of Trust. Loan to be fully paid and satisfied at the end

of the loan term, at the time of the owner(s) death, or upon the owner(s) vacating, selling or

transferring the deeded property. The property must remain the primary residence of the owner(s).

Deferred Loan- if it is determined by DHNP that in order to be affordable, some portion of the loan

needs to be deferred, the amount that is deferred will be a no interest loan to be secured by a Deed of

Trust. The deferred loan may be in combination with a low interest loan. All funds in the deferred

loan must be paid back to the city of Virginia Beach at the time of the owner(s) death, or upon the

owner(s) vacating , selling or transferring the property, or at such time that the owner no longer uses

the property as their primary residence.

HOUSING RATIO

Not to exceed 30% of gross monthly income, without prior written approval of the Rehabilitation

Division Program Manager.

TOTAL DEBT RATIO

Not to exceed 45% of gross monthly income without prior written approval of the Rehabilitation

Division Program Manager.

SUBORDINATION OF LIEN

DHNP will not subordinate the lien for the substantial rehabilitation or reconstruction of a housing


unit.

RELOCATION

This program is voluntary. Program participants shall be responsible to make

their own living arrangements while the rehabilitation or reconstruction is being

done. No temporary relocation funds are provided as part of this program.

I have read the above program requirements for assistance and fully understand and agree with all

program requirements.



G:/ sprescot/reports/reconstruction

prog descp

revised 06-011-04

CSP0809-ProgDesc- SubsReconstSKP.4-24-08



INTENTIONALL LEFT BLANK

Section V, Page 1-F-1



(757) 385-5750

RENTAL SECURITY DEPOSIT PROGRAM – EFFECTIVE JULY 1, 2010

PURPOSE

To assist low income households to secure decent, safe and affordable housing by providing

funding for the security and/or utility deposits for a rental housing unit approved by the

Department of Housing and Neighborhood Preservation (DHNP). For the purpose of this

program, an individual is considered a household. Assistance is provided based on the

availability of funding , and is provided one time only to any individual or household.

ELIGIBLE HOUSEHOLDS


does not exceed sixty percent (60%) of the area median income, adjusted for family size, as

established by the U.S. Department of Housing & Urban Development (HUD).


Number in

Household 1 2 3 4 5 6 7 8

60% Median Income 28,680 32,760 36,840 40,920 44,220 47,520 50,760 54,060


In addition to the income requirements, an individual or households must meet all of the

following requirements:

1. Non-Section 8 Households: Must have a written referral and certification of

homelessness or a determination that the family is in imminent danger of

homelessness from an appropriate City agency or Virginia Beach non-profit organization

that works with or provides homeless services or housing to homeless persons. (See

attached addendum for definition of homelessness and of imminent danger of

homelessness). DHNP can also make such a referral.

2. Section 8 Households: must be either elderly (age 62 or older), permanently disabled

(physical or mental), or have minor dependants. A hardship condition must exist. Each

Section 8 household will be evaluated on a case-by-case basis and must be referred by

their Section 8 Housing Specialist. The Section 8 Housing Specialist must provide

written documentation as to the nature of the hardship and need for assistance. Section 8

households transferring residency voluntarily within the city will not be eligible for

security deposit assistance. Each referral will be evaluated on a case-by-case basis and


the determination for assistance will be solely made by DHNP. Section 8 Portability

Voucher holders are not eligible for assistance.









PROGRAM CONDITIONS

1. Individuals or households receiving assistance must demonstrate the ability to afford the

monthly rent and estimated utility expenses for the unit along with other household

expenses prior to assistance being provided.

2. Households receiving assistance through the Rental Security/Utility Deposit Program are

ineligible to simultaneously receive assistance under DHNP’s Optional Relocation

Program (household cannot receive financial assistance under the Rental Security/Utility

Deposit Program and Optional Relocation Program for the same circumstance/situation).

Households may be eligible to receive housing subsidies from other DHNP programs or

programs administered by the Department of Human Services but this will be evaluated

on a case by case basis.




Households above 60% of the median income. Households who have been terminated from any

federally assisted housing program. Households with any member who has a criminal record for

violent behavior, welfare fraud, crimes of a sexual nature or with any member who is subject to a

lifetime registration requirement under a State sex offender registration program.

TYPE OF ASSISTANCE PROVIDED

A grant not to exceed the actual cost of the required security deposit and/or eligible utility

deposits. The amount of the rental security deposit can not exceed the cost of two (2) months

rent. Assistance will only be provided in the amount to be determined by DHNP as needed to

remove the barrier to securing housing. Rental security deposit shall be paid directly to the

landlord or property manager.


ELIGIBLE UTILITY DEPOSITS

Utility deposits may be provided for water, sewer (HRSD), gas and/or electric services based on

financial need. Only required deposits for new service may be paid. No payment of back funds,

or overdue funds for utility services may be paid as part of a utility deposit. Utility deposits will

be paid directly to the utility company. Telephone and Cable TV deposits are not eligible.

Utilities must be in the name of the head of the household listed on the lease.

ELIGIBLE PROPERTIES

Monthly rent for the unit must not exceed the HUD Fair Market Rent (FMR), excluding cost of

utilities. Rental security deposit will be paid directly to the property owner or manager. DHNP

will not approve a lease if the rent is not reasonable, based on rents that are charged for

comparable unassisted rental units. Property must be inspected by Code Enforcement and pass

the Existing Property Code Standards of the Uniform Statewide Building Code (USBC) prior to

assistance being provided. Properties must be located in Virginia Beach, Norfolk, Portsmouth,

Suffolk or Chesapeake.


Properties that do not meet Existing Property Code Standards of the USBC, temporary housing

(i.e. motels or homeless shelters), and properties in a Clear Zone as designated on the current Air

Installations Compatible Use Zones (AICUZ) map.

OCCUPANCY STANDARDS

The number of bedrooms needed by the households will be determined based on the chart below.



1

1

2

2

3

4

3

4

6

4

7

8

5

9

10

6

11

12

NOTE: The Housing Specialist has the discretion to recommend exceptions to the occupancy

standards if extenuating circumstances exist that would create a hardship (example- no one

bedroom units available to rent that are within the FMR limits). Exceptions will be evaluated on

a case by case basis, with final approval being granted by the Housing Program Administrator.


The DHNP may grant such an exception to the established subsidy standards if the DHNP

determines the exception is justified by the age sex, sex, health, handicap, relationship of family

members or other personal circumstances. Such exceptions shall be applied uniformly.

LEASE PROVISIONS

The term of the lease must be for at least 12 months, unless another term is mutually agreed upon

by the tenant and owner, AND approved by DHNP. All persons residing in the household,

regardless of age must be listed on the lease. Co-signers who are not listed as household

members in the determination of household eligibility are not allowed. Leases must not contain

any of the prohibited terms listed in 24 CFR 92.253(b) ( See Attached). A copy of the

unsigned lease must be provided to DHNP for review and approval before assistance can be

provided. Assistance will be denied to a household that enters into a lease without DHNP’s

prior review and approval of the lease.

NOTE: The Program Administrator reserves the right to waive any non-statutory requirement

stated above based on a case-by-case review.


understand and agree to comply with all program requirements. I understand that I and/or

members of my household are eligible for this assistance one time only. I also understand

that my/our application is only good for six months.

______________________________


______________________________


DHNP DOES BUSINESS WITH THE FEDERAL




BECAUSE OF RACE, COLOR, RELIGION, SEX,















following criteria:










housing.









REPAYMENT/RECAPTURE POLICY FOR NON-PROFITS

The DHNP utilizes federal funds (CDBG, HOME, ESG, HOPWA, etc.) to provide forgivable

loans to nonprofit organizations for acquisition and/or rehabilitation projects. Repayment of

federal funds is required when one of the following occurs: the property is sold, transferred,

foreclosed, failure to complete the project or to maintain compliance with the affordability

requirements found under the contract agreement. If any of these cases occurs, full repayment of

the federal funds is immediately due and payable to the City of Virginia Beach Department of

Housing and Neighborhood Preservation.

The City of Virginia Beach Department of Housing and Neighborhood Preservation has adopted

HUD’s terms for the period of affordability listed below:

ACTIVITY

MINIMUM PERIOD

OF AFFORDABILITY

IN YEARS

Rehabilitation or acquisition of existing housing per unit amount of HOME funds:

Under $15,000

5

$15,000 to $40,000

10

Over $40,000

15

New Construction or acquisition of newly constructed housing

20

The Deed of Trust and Promissory Note will incorporate the following clause to ensure

compliance and enforcement if the nonprofit organization fails to adhere to the contract

agreement.

Repayment/recapture - All repayment/recapture funds resulting from failure to complete

the project or to maintain compliance with affordability requirements must be remitted to

the City of Virginia Beach for disposition by the City. It is understood and agreed that in

the event that the BORROWER sells the property securing repayment of the Note at any

time before the balance has been forgiven as provided in the Note, the entire original

principal amount shall become immediately due and payable out of the Net proceeds

from the sale. For the purposes of the Note, the term Net Proceeds shall mean the sales

price minus (a) the payoff of loans and other amounts having priority over the lien of the

Deed of Trust securing repayment of the Note, and any (b) closing costs. If the Net

Proceeds from the sale of the property at its fair market value are insufficient to pay the

principal amount of the Note in full, the city shall forgive repayment of the amount of the

Note in excess of the Net Proceeds.

Section V, Page 1-E-1



(757) 385-5750

TENANT BASED RENTAL ASSISTANCE PROGRAM

(TARGETED AT HOMELESS FAMILIES)

EFFECTIVE - JULY 1, 2010

PURPOSE

To assist low income homeless families and/or those in imminent danger of becoming homeless

to secure decent, safe and affordable housing by providing funding for vouchers to be utilized for

rental housing units approved by the Department of Housing and Neighborhood Preservation

(DHNP). Initial voucher assistance is for twelve months and may be renewed one time for up to

an additional twelve months subject to the availability of funding.

ELIGIBLE HOUSEHOLDS


does not exceed sixty percent (60%) of the area median income, adjusted for family size, as

established by the U.S. Department of Housing & Urban Development (HUD). Only households

with children are eligible for this program.


# in Household 2 3 4 5 6 7 8

60% Median Income 32,760 36,840 40,920 44,220 47,520 50,760 54,060


In addition to the income requirements, households must meet all of the following requirements:

1. Referral: Must have a written referral from an appropriate City agency or a Virginia

Beach non-profit organization that works with or provides homeless services or housing

to homeless persons. The referral must document the family as homeless or as being in

imminent danger of becoming homeless based on the criteria attached to this program

description. At its option, the DHNP can make such a referral (specifically through its

housing counseling service).










PROGRAM CONDITIONS

1. There is no formalized waiting list for this program. This is a “targeted population” program

designed to assist homeless families and/or those in imminent danger of becoming homeless.

The only families potentially eligible for this program are those referred to DHNP through

the previously described process. Preference may be given to those families moving out of

transitional housing or receiving housing counseling services through DHNP. The number of

referrals accepted will be dependent upon available budget. Once an established budget

threshold is reached, referral processing will cease. Whenever possible, unsuccessful TBRA

applicants will be advised of opportunities in other housing programs.

2. Once referred to the program, an applicant family will undergo a subsidy assistance review

and an initial assessment by personnel from DHNP. A recommendation will be made based

on the family’s needs and its ability to meet all eligibility requirements. Such a decision is

final and cannot be appealed.

3. If approval is recommended, the participating family must enter into a Housing Stabilization

Plan that clearly defines objectives that will help the family maintain residency in permanent,

sustainable housing. The Plan will include mandatory meetings and monitoring by DHNP

personnel. A family’s success in meeting the Housing Stabilization Plan will be reviewed

at least every three months. Failure to achieve the defined objectives listed in the Plan

will result in loss of subsidy. Families will be encouraged to enroll in the DHNP’s

Family Self Sufficiency program.



.


Households above 60% of the median income. Families without a valid referral certifying as to

homelessness or imminent danger of becoming homeless. Households with any member who has

a felony conviction for a crime involving violent behavior, welfare fraud or any crime of a sexual

nature.

PROGRAM DESIGN

This assistance is a HOME funded Tenant Based Rental Assistance (TBRA) program which is

used to assist eligible tenants with the payment of monthly rent. With the exception of noted

modifications, the program will utilize the regulations of the HUD Section 8 Housing Choice


Voucher (HCV) Program operated by DHNP and will, to the greatest extent possible, employ the

same intake and processing forms (modified as necessary). Any procedures or regulations

inadvertently omitted from this program description that are not a statutory requirement under

the HOME Program, will be governed by the DHNP Administrative Plan for the HCV Program.

OCCUPANCY STANDARDS

The number of bedrooms needed by the households will be determined by VBDHNP based on

the chart below.



1

1

2

2

3

4

3

4

6

4

7

8

5

9

10

6

11

12

NOTE: If extenuating circumstances exist that would create a hardship, exceptions will be

evaluated on a case by case basis with final approval being granted by the Administrator. The

DHNP may grant an exception to the established subsidy standards if the DHNP determines the

exception is justified by the age sex, sex, health, handicap, relationship of family members or

other personal circumstances. Such exceptions shall be applied uniformly.

ELIGIBLE PROPERTIES

Once a family has selected a unit, the monthly rent for the housing must not exceed the HUD

Fair Market Rent (FMR), excluding cost of utilities. VBDHNP will not approve a lease if the

rent is not reasonable, based on rents that are charged for comparable unassisted rental units.

Property must be inspected by VBDHNP prior to assistance being provided. The unit must meet

the inspection standards utilized by the Virginia Beach Housing Choice Voucher Program.

VOUCHER ISSUANCE

The DHNP will not issue a voucher to a family unless the household representative attends a

briefing, completes necessary forms and signs the voucher. When an applicant is selected for

participation in the TBRA Program, the newly issued voucher is valid for a minimum period of 60 days from the date of issuance, with no extensions.


If a tenant locates a unit, and the owner is willing to lease the unit under the program, the

voucher holder may request DHNP approval to lease the unit. To utilize the voucher, the holder

must submit a Request for Tenancy Approval to DHNP, a copy of the proposed lease, and a copy of all other required documents. Documents must be submitted during the specified term of the

TBRA Housing Voucher. The lease submitted for approval must also include the Tenancy

Addendum. The Tenancy Addendum is the same document as required under the Section 8 HCV

Program with appropriate modifications to reflect its use for TBRA.

LEASE PROVISIONS

The length of the initial lease must be for at least 12 months, unless another term is mutually

agreed upon by the tenant and owner, AND approved by DHNP. Additionally, under the

initial lease for the TBRA Program, the tenant portion of the gross rental payment may

not exceed 30% of the family’s adjusted gross income. All persons residing in the household,

regardless of age must be listed on the lease. Co-signers who are not listed as household

members in the determination of household eligibility are not allowed. Leases must not contain

any of the prohibited terms listed in 24 CFR 92.253(b). A copy of the unsigned lease must be

provided to DHNP for review and approval before assistance can be provided. Assistance will

be denied to a household that enters into a lease without DHNP’s prior review and approval of

the lease.

EXECUTION OF HOUSING ASSISTANCE PAYMENT CONTRACT Once the DHNP has verified the unit is acceptable and the lease has been approved, the DHNP

will execute a Housing Assistance Payment (HAP) Contract with the owner and authorize the tenant and the landlord to execute the lease and Tenancy Addendum. In the HAP Contract for

TBRA assistance, the owner agrees to lease a specified dwelling unit to a specified eligible

household, and the DHNP agrees to make monthly housing assistance payments to the owner on

behalf of the tenant. With necessary modifications, the HAP Contract for the TBRA Program is in the same format

as the HAP agreement used for the Section 8 HCV Program. It is clearly understood through that

agreement that termination of the HAP by DHNP results in a concurrent cancellation of the lease

and the end of all rental subsidy payments. Additionally, failure of the tenant to meet the terms of

their Housing Stabilization Plan will be cause for termination of the HAP Contract.

RIGHT TO A HEARING

If you are approved as a participant, you have the right to request an informal hearing in certain

situations if you disagree with the decision made by DHNP staff. An informal hearing is a

session in which you and DHNP personnel meet or conduct a telephone conference call to

discuss the circumstances about your case. There are also situations in which you cannot request

an informal hearing. You cannot request a hearing to appeal initial denial of your

application to receive a TBRA voucher.


NOTE: The Housing Program Administrator reserves the right to waive any non-statutory

requirement stated in this agreement based on any exceptional circumstances affecting a

client family.


understand and agree to comply with all program requirements. I understand that as part of this

requirement I agree to execute a Family Action Plan and that failure to meet the goals stated in

that Plan will result in the loss of any housing subsidy which may be approved for my household.

I further understand that I will only receive assistance upon the confirmation of my eligibility

and that, if approved, I may only receive this assistance one time.

______________________________


______________________________




















following criteria:










housing.





