R2021-056 03-22-2021RESOLUTION NO. R2021-56
A Resolution of the City Council of the City of Pearland, Texas, adopting
Housing Guidelines in accordance with the requirements set forth by the
Texas General Land Office — Community Development Block Grant —
Disaster Recovery (CDBG-DR) Program.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. Those certain Housing Guidelines associated with CDBG-DR Program, a
copy of which is attached hereto as Exhibit "A" and made a part hereof for all purposes, are
hereby authorized and approved.
Section 2. That the City Manager or his designee is hereby authorized to execute
and the City Secretary to attest the Housing Guidelines associated with CDBG-DR Program.
PASSED, APPROVED and ADOPTED this the 22nd day of March, A.D., 2021.
ATTEST:
STAL ROAN, TRMC, CMC
CITY SECRETARY
APPROVED AS TO FORM:
' Of--
DARRIN M. COKER
CITY ATTORNEY
•........
••
1''','11"J111111111111111,'\
Exhibit A
PURPOSE:
The City of Pearland Housing Guidelines provides the
overall structure for administering Community
Development Block Grant (CDBG) disaster recovery
buyouts program activities.
CITY OF PEARLAND
HOUSING GUIDELINES
City of Pearland, TX
Effective: March 23, 2021
Disclaimer
These guidelines may and can be updated and/or changed. The City of Pearland will update the
public and relevant stakeholders to reflect the most up-to-date information available as changes
are made. Any substantial amendments or adjustments to these Guidelines will be managed in
accordance with the rules in 25 CFR Part 91.105 — Citizen Participation.
For questions regarding these guidelines, contact City of Pearland Administration at (281) 652-
1662.
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Contents
1.0 Introduction 4
2.0 Acronyms and Definitions 7
3.0 Program Design Requirements 15
4.0 Program Design & Objectives 19
5.0 Program Implementation 24
6.0 Additional Program Requirements 36
7.0 URA Displacement of Persons and/or Entities 38
8.0 Conflict of Interest 40
9.0 Complaint/Appeal Process 40
10.0 Changes, Waivers and/or Conflicts 41
11.0 Case Management 41
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1.0 Introduction
On August 26, 2017, Harvey began to drop torrential rainfall on Pearland, Texas, which added to
the impending impact of flood -flow and conveyance of floodwater entering the area from
watersheds and major creeks that extend northwest of the City. Over the course of five days,
Pearland experienced more than 50 inches of rainfall, Clear Creek spilled over its banks, and
flooding inundated a number of streets, impacted neighborhoods, destroyed an estimated $28
million in public and private property, and had an incalculable impact on local economic resiliency
and business concerns in the area. An estimated 1,784 homes were damaged by the storm, and
local water utilities failed to function as lift stations and wastewater treatment plants became
flooded with storm water. Hundreds of flood -affected householders throughout the City and
surrounding areas had to seek shelter at Pearland facilities, as uninhabitable conditions in the
residentially damaged homes in town prevented more than 500 people from remaining in their
homes.
Recovery and repair cost data from HUD and FEMA suggest the majority of the damage occurred
to residential property valued at approximately $18,182,480, averaging about $10,292 per home.
In response to the damage caused by Hurricane Harvey and other natural disasters that occurred
across the nation in 2017, the U.S. Congress appropriated $28 billion in Federal Fiscal Year 2018
funds for the Community Development Block Grant -Disaster Recovery (CDBG-DR) program
through Public Law 113-2, enacted on January 29, 2013. Ultimately, HUD determined that the
portion of the entire allocation that would be granted to the State of Texas would be $5.024 billion.
HUD's funding aimed at addressing the 2017 Hurricane Harvey and subsequent flooding declared
disaster events can be referenced in Table 1 below:
TABLE 1.0a Applicability
Federal Register
(FR)
Publication
Date(s)
Public
Law(s)
Location Link
82 FR 61320,
Vol. 82, No. 247
12/27/2017
P.L. 115-31
https://www.gpo.gov/fdsys/pkg/FR-2017-12-
27/pdf/2017-27960.pdf
83 FR 5844,
Vol. 83, No. 28
02/09/2018
P.L. 115-56
https://www.gpo.gov/fdsys/pkg/FR-2018-02-
09/pdf/2018-02693.pdf
83 FR 40314,
Vol. 83, No. 157
08/14/2018
P.L. 115-123
https://www.gpo.gov/fdsys/pkg/FR-2018-08-
14/pdf/2018-17365.pdf
Following a framework created by the State of Texas through the General Land Office (GLO),
communities that were allocated funds for buyouts/acquisitions will aim to purchase homes that
were impacted by Hurricane Harvey. Communities received allocations under a formal Method of
Distribution Process ("MOD") organized and administrated by regional Counsels of Governments
("COGs"). To receive a buyout/acquisition allocation, COGs must have determined that localities
had more than one million dollars of housing need that could be addressed through
buyout/acquisition program activities.
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The City of Pearland received an allocation totaling $2,727,372 for acquisition or buyout activities
from the Houston -Galveston Area Council COG.
In addition to CDBG-DR funding. The City of Pearland also received FEMA HMGP funding in the
amount of $5,558,010.89 of which $1,389,502.72 is local applicant funding for acquisition
projects. CDBG-DR funding can be used on FEMA projects for assistance in paying the local cost
share.
Specific to the prevailing local disaster recovery objectives the City of Pearland has prioritized,
largely in response to 2017 Hurricane Harvey (DR-TX-4332), The City of Pearland has designed
programs that support the City's need for improved drainage infrastructure, but also prioritizes
buyouts of flood -affected residential properties. More specifically, the CDBG-DR buyout program
that the City of Pearland has designed will leverage both CDBG-DR and FEMA funding to buyout
an estimated 10 properties with the CDBG-DR funding, and 6 properties with FEMA HMGP
funding and a CDBG-DR match.
The purpose of the program is to aid in the long-term efforts following Hurricane Harvey;
specifically, to facilitate the replenishment of housing stock lost during the hurricane and
subsequent flooding and to assist in moving eligible homeowners out of harm's way through fair
market value buyouts or acquisitions.
These guidelines provide a blueprint for designing, implementing, and closing a CDBG-DR
Housing Program (Table 2). For additional detail, refer to Section 10 — Local Buyout and
Acquisition Program.
The City of Pearland's Administration Department oversees the administration of Pearland
Community Development Block Grant programs; including: regular CDBG, CDBG-Disaster
Recovery, CDBG-Mitigation funds and others received directly from the U.S. Department of
Housing & Urban Development (HUD), as well as those allocated to the City as a pass-thru via
the Texas General Land Office (GLO). Questions regarding these Guidelines or requests for
additional information should be directed to the City of Pearland.
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TABLE 2. City of Pearland Hurricane Harvey CDBG-DR Housing Program
Program &
Eligible Activities
National
Objective
Program
Administrator
Tenure*
Single Family/Homeowner
Local Buyout Program:
Low- and
Texas General
The City of
• Buyouts
moderate- income,
Land Office
Pearland
• Demolition with buyout or
elimination of
(GLO).
contract with
acquisition activities
slum/blight, urgent
the GLO has
• Reversion of property to
need, low/mod
Method of
the following
greenspace in perpetuity
buyout (LMB), and
Distribution
period of
• Perpetual maintenance of
low/mod housing
(MOD) was
performance:
greenspace property from
buyouts
incentive (LMHI)
determined by the
Houston-
January 29,
2020 - April
Galveston Area
30, 2022.
Council (HGAC)
and determined
that $2,727,372
based on
Hurricane
Harvey's
damages to local
residential
property.
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2.0 Acronyms and Definitions
2.1 Acronyms
Acronym
Name
AA
Allowable Activities
AFFH
Affirmative Further Fair Housing
ABFE
Advisory Base Flood Elevations
BFE
Base Flood Elevation
CDBC
Community Development Block Grant
CRS
Community Rating System
DHAP
Disaster Housing Assistance Program
DRC. R
Disaster Recovery Grant Reporting System
DOB
Duplication of Benetit
ECR
Estimated Cost of Repair
FMV
Fair Markel Value
FEMA
Federal Emergency Management Agency
GLO
State of Texas General Land Office
HGMP
Hazard Mitigation Grant Program
HQS
Housing Quality Standards
HUD
Department of Housing and Urban Development
IFS
Invitation for Bid
IRS
Internal Revenue Service
LEP
Limited English Proficiency
LMI
Low to Moderate Income
MHU
Mobile Home Unit
MPS
Minimum Property Standards
MBE
Minority Business Enterprise
NEPA
National Environmental Policy Act
NFIP
National Flood Insurance Program
OIA
Office of Internal Audit
OIG
HUD Office of Inspector General
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OIG
HUD Office of lnspector General
PCI3
Policy Change Control Board
POA
Power of Attorney
QA
Quality Assurance
QC
Quality Control
QPR
Quarterly Performance Report
RV
Recreational Vehicle
RE()
Real Estate Owned Property
RFP
Request for Proposal
RI Q
Request for Qualifications
RE
Responsible Entity
SAVE
Systematic Alien Verification for Entitlements
SBA
Small Business Administration
SEQR
State Environmental Quality Review Act
SFHA
Special Flood Hazard Area
SOW
Scope of Work
SSC
Site Specific Checklist
SSDI
Social Security Disability Income
TSA
Transitional Shelter Assistance
UGLG
Units ofGeneral Local Government
URA
Uniform Relocation Act
2.2 Definitions
Acquisition: Acquisition of Real Property at 100 percent post -disaster fair market value (FMV)
of the land and structures that allows subrecipients to acquire real property for any public
purpose, as set forth in 24 CFR 570.201(a). Acquisition -only is typically not considered a
complete activity in the Program and may be combined with another eligible activity (i.e.,
relocation assistance and new construction of housing). Methods of acquisition include
purchase, long-term lease (15+ years), donation or otherwise (CPD-17-09). The subrecipients
have the flexibility to hold any property purchased through acquisition as undeveloped green
space in perpetuity or to redevelop it in a resilient manner. Acquisition of Real Property funding
may match other federal funding used to buyout structures as a percentage of total costs.
Adjusted Gross Income (AGI): AGI is an individual's total gross income minus specific
deductions. The GLO Adjusted Gross Income Methodology may be found at:
http://recovery.texas. gov/.
Affirmative Fair Housing Marketing Plan (AFHMP): A document used to help subrecipients
offer equal housing opportunities regardless of race, color, national origin, religion, sex, familial
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status, or disability (24 CFR Part 200, Subpart M). Implementing Affirmative Fair Housing
Marketing Requirements Handbook (8025.1) can be obtained from HUD's website
https://www.hud.ciov/program offices/ad min istration/hudcljps/handbooks/fheo/80251.
124 CFR 200.625
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Affirmatively Furthering Fair Housing (AFFH): AFFH is a legal requirement that federal
agencies and federal grantees further the purposes of the Fair Housing Act. HUD's AFFH rule
provides an effective planning approach to aid program participants in taking meaningful
actions to overcome historic patterns of segregation, promote fair housing choice, and foster
inclusive communities that are free from discrimination. The HUD AFFH assessment tool and
final rule can be found here: https://www.huduser.gov/portal/affht pt.html.
Applicant/Homeowner/Survivor: (Used interchangeably) Individuals whose homes or
housing units were destroyed, made uninhabitable, needed repairs, or who suffered disaster -
related displacement from their primary residences and/or loss of property.
Area Median Income (AMI): Calculated annual limits based on HUD -estimated median family
income with adjustments based on family size used for demonstrating LMI beneficiaries in the
programs. May also be referred to Area Median Family Income (AMFI) in other program
documents.
Beneficiary: The recipient deriving advantage from CDBG-DR funding.
Buyout: Purchase of an eligible property at the fair market value of the land and structures with
the intent to reduce risk from future flooding or to reduce risk from future hazard. Buyouts are
properties within defined Disaster Reduction Risk Areas (DRRA), determined in consultation
with county and local governments such as areas within the 100-year floodplain and/or in the
highest risk areas as defined by FEMA flood map "V Zone." The property acquired will be
dedicated and maintained in perpetuity for a use that is compatible with open space, recreational
use, or floodplain and wetlands management practices. Buyout -only is typically not considered
a complete activity in the Program and may be combined with another eligible activity (i.e.,
relocation assistance and new construction of housing).
Case Management: Working with individual survivors and their families to understand the
Program's housing options, resulting in clear and transparent determination of eligibility. Case
managers must consider all special circumstances of the survivor's needs to decrease their
barriers to participate in the program where possible. City staff or its assigns should meet at
designated locations and supply information in a standard format.
Contract of Sale: The formal contract between the City and the Property owner that stipulates
the legal terms of the real estate transaction. All property owners will have the option of having
an attorney review the contract of sale. Any cost involved in these reviews will not be covered
by the City.
Damage Assessment: An inspection of the housing unit to document damage from the event.
The assessment by a certified or licensed inspector (HQS, TREC, or similar license) is required
to specifically and clearly document storm -related property damage via photographic evidence
and detailed narratives (see the GLO's Damage Assessment Guidelines, found at:
http://recovery.texas.gov/). Damage assessments must include final cost of repair estimates
according to local code, an assessment of the cost- effectiveness of each recommended activity
(rehabilitation, reconstruction, or new construction), mold remediation, and assistance needed
to bring the home up to code at completion.
Davis -Bacon Act of 1931 (40 USC Part 3141 et seq.) and Related Acts: All laborers and
mechanics employed by contractors or subcontractors in the performance of construction work
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financed in whole or in part with assistance received under this chapter shall be paid wages at
rates not less than those prevailing on similar construction in the locality as determined by the
Secretary of Labor in accordance with the Davis -Bacon Act, as amended. This applies to the
rehabilitation and reconstruction of residential property only if such property contains not less
than 8 units.2
Demolition: The clearance and proper disposal of dilapidated buildings and improvements.
Department of Housing and Urban Development (HUD): Federal agency through which the
Program funds are distributed to grantees.
Duplication of Benefits: The Robert T. Stafford Disaster Assistance and Emergency Relief Act
(Stafford Act) prohibits any person, business concern, or other entity from receiving financial
assistance from CDBG-DR funding with respect to any part of a loss resulting from a major
disaster as to which he/she has already received financial assistance under any other program
or from insurance or any other source.
Elderly Person: [24 CFR 891.205] An elderly person is a household composed of one or more
persons at least one of whom is 62 years of age or more at the time of initial occupancy.
Environmental Review: All qualified projects must undergo an environmental review process.
This process ensures that the activities comply with National Environmental Policy Act (NEPA)
and other applicable state and federal laws.
Event: The Presidentially declared Hurricane Harvey, and subsequent flooding, disaster event.
Family: The term family means all persons living together in the same housing unit, as further
defined under 24 CFR 570.3.
Fair Housing: Activities that follow the rules and guidelines set forth in the Fair Housing Act and
subsequent fair housing legislation. The goal of these activities is to eliminate housing
discrimination, promote economic opportunity, and achieve diverse, inclusive communities.
Fair Housing Administrator: The individual appointed by the Mayor who shall have the
responsibility for implementing the Section on complaints. This individual will report to the
Committee overseeing the program on behalf of the City Council.
Fair Housing Marketing Plan: A marketing strategy designed to attract applicants of all majority
and
minority groups, regardless of sex, handicap, familial status, etc. to participate in the housing
activities which are being marketed.
Fair Market Value: The hypothetical price that a willing buyer and seller will agree upon when
they are acting freely, carefully, and with complete knowledge of the situation.
Federal Emergency Management Agency (FEMA)-Designated High -Risk Area: Areas
designated by FEMA as vulnerable to significant wind and/or storm surge damage and areas
located in 100-year flood zones. These areas will be identified during the environmental review
process for each participating jurisdiction.
Federal Register (FR): A daily publication of the US federal government that issues proposed
2 htt.s://www.hudexchange.info/resources/documents/Housing-and-Community-Development-Act-1974.pdf
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and final administrative regulations of federal agencies.
Federal Emergency Management Agency (FEMA): FEMA is an agency of the United States
Department of Homeland Security, initially created under President Jimmy Carter by
Presidential Reorganization Plan No. 3 of 1978 and implemented by two Executive Orders on
April 1, 1979.E The agency's primary purpose is to coordinate the response to a disaster that
has occurred in the United States and that overwhelms the resources of local
and state authorities.
Flood Disaster Protection Act of 1973 and Sec. 582(a) of the National Flood Insurance
Reform Act of 1994: Compliance with the legal requirements of Section 582(a) mandates that
HUD flood disaster assistance that is made available in Special Flood Hazard Areas (SFHAs)
may not be used to make a payment (including any loan assistance payment) to a person for
repair, replacement or restoration for flood damage to any personal, residential or commercial
property if: (1) the person had previously received federal flood disaster assistance conditioned
on obtaining and maintaining flood insurance; and (2) that person failed to obtain and maintain
flood insurance as required under applicable federal law on such property.
Flood Hazard Area: Areas designated by FEMA as having risk of flooding.
Flood Insurance: The Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a) requires that
projects receiving federal assistance and located in an area identified by FEMA as being within
a Special Flood Hazard Areas (SFHA) be covered by flood insurance under the National Flood
Insurance Program (NFIP). In order to be able to purchase flood insurance, the community must
be participating in the NFIP. If the community is not participating in the NFIP, federal assistance
cannot be used in those areas.
Floodplain: FEMA designates floodplains as geographic zones subject to varying levels of flood
risk. Each zone reflects the severity or type of potential flooding in the area.
• "100-year floodplain" — the geographical area defined by FEMA as having a one
percent chance of being inundated by a flooding event in any given year.
• "500-year floodplain" — the geographical area defined by FEMA as having a 0.2 percent
change of being inundated by a flooding event in any given year.
General Land Office (GLO): The Texas General Land Office is the lead state agency for
managing the state's Community Development Block Grant - Disaster Recovery grants through
the U.S. Department of Housing and Urban Development.
Grant Agreement: A funding agreement detailing eligible program costs and project -specific
award agreements between HUD and the GLO, including regulatory provisions, certifications,
and requirements. A subrecipient grant agreement exists between the City and the GLO.
Hazard Mitigation Grant Program (HMGP): The Hazard Mitigation Grant Program (HMGP) is
a Federal Emergency Management Agency (FEMA) program. This program provides grants
to state and local governments to implement long-term hazard mitigation measures after a
major disaster declaration. The purpose of the HMPG is to reduce the loss of life and property
due to natural disasters and to enable mitigation measures to be implemented during the
immediate recovery from disasters. The HMGP is authorized under Section 404 of the Robert
T. Stafford Disaster Relief and Emergency Assistance Act.
Home/Housing Unit: (used interchangeably) a house, apartment, group of rooms, or single
111 'age
room occupied or intended for occupancy as separate living quarters.
Household: A household is defined as all persons occupying the same housing unit, regardless
of their relationship to each other. The occupants could consist of a single family, two or more
families living together, or any other group of related or unrelated persons who share living
arrangements. For housing activities, the test of meeting the LMI National Objective is based
on the LMI of the household.
Housing and Community Development Act of 1974, as amended by the Supplemental
Appropriations Act of 1984: Established the program of Community Development Block
Grants to finance the acquisition and rehabilitation of real property and which defined the
recipients and uses of such grants, with the primary goal of benefitting LMI persons.
Housing and Urban Development Act of 1968, Section 3: Requires program administrators
ensure that training, employment, and other economic opportunities generated by HUD
financial assistance shall be directed to the greatest extent feasible and consistent with existing
federal, state, and local laws and regulations, to low- and very low-income persons. Recipients
of Section 3-covered funding ensure compliance and the compliance of their
contractors/subcontractors with the Section 3 requirements, as outlined in 24 CFR 135.32.3
Low to Moderate Buyout (LMB) National Objectives: LMB is used for a buyout award to
acquire housing owned by a qualifying LMI household, where the award amount (including
optional relocation assistance) is greater than the post -disaster (current) fair market value of
that property.
Low -to -Moderate Income (LMI): Low to moderate income people are those having incomes
not more than the "moderate -income' level (80% Area Median Family Income) set by the federal
government for the HUD assisted Housing Programs. This income standard changes from year
to year and varies by household size, county and the metropolitan statistical area.
Low to Moderate Income National Objective: Activities which benefit persons of income that
does not exceed 80 percent of the area median income:
• Very low: Household's annual income is up to 30 percent of AMI, as determined by HUD,
adjusted for family size;
• Low: Household's annual income is between 31 percent and 50 percent of AMI, as
determined by HUD, adjusted for family size; and
• Moderate: Household's annual income is between 51 percent and 80 percent of AMI,
as determined by HUD, adjusted for family size.
Mitigation: Improvements made to reduce the possibility of property damage, personal and
commercial hardship, as well as long lasting monetary burdens. For example, creating a flood
mitigation program such as an acquisition of at -risk flood -prone property/housing, and elevation
of housing in high -risk floodplains are two visible and effective mitigation projects that can be
taken to make residents and communities safer in the face of natural disasters.
Needs Assessment: A needs assessment is a critical component in the allocation of funding
3 https://www.hudexchange.info
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across and within National Objectives for CDBG-DR funds. A given needs assessment will
recommend the proportions of funding that should be set aside to benefit each LMI and non-
LMI economic group. The needs assessment will determine the activities to be offered, the
demographics to receive concentrated attention, the disabled, "special needs," vulnerable
populations, and target areas to be served. The needs assessment will also include an
assessment of the types of public services activities that may be needed to complement the
program. The needs assessment should set goals within the income brackets similar to the
housing damage sustained within the impacted areas. Deviations from goals must be approved
by the GLO before the Program may move forward. The City will develop and maintain local
needs assessments.
One for One Replacement: Subpart B Requirements Under Section 104(d) of the Housing
and Community Development Act of 1974, 24 CFR 42.375 provides for public and/or assisted
lower -income dwelling units to be demolished or converted to a use other than lower -income
dwelling unit must be replaced with comparable lower -income dwelling units.
Overall Benefit: The City has certified that, in the aggregate, not less than 70 percent of the
CDBG-DR funds received by the City during a period specified by the GLO will be used for
activities that benefit LMI households.
Person with Disabilities: [24 CFR 5.403]. A person with disabilities for purposes of program
eligibility:
Means a person who:
• Has a disability, as defined in 42 U.S.C. 423;
o Inability to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to result in
death or which has lasted or can be expected to last for a continuous period of
not less than 12 months; or
o In the case of an individual who has attained the age of 55 and is blind, inability
by reason of such blindness to engage in substantial gainful activity requiring
skills or abilities comparable to those of any gainful activity in which he/she has
previously engaged with some regularity and over a substantial period of time.
For the purposes of this definition, the term blindness means central vision acuity
of 20/200 or less in the better eye with use of a correcting lens. An eye which is
accompanied by a limitation in the fields of vision such that the widest diameter
of the visual field subtends an angle no greater than 20 degrees shall be
considered for the purposes of this paragraph as having a central visual acuity
of 20/200 or less.
• Is determined, pursuant to HUD regulations, to have a physical, mental, or emotional
impairment that:
o Is expected to be of long -continued and indefinite duration,
o Substantially impedes his or her ability to live independently, and
o Is of such a nature that the ability to live independently could be improved by
more suitable housing conditions; or
o Has a developmental disability, as defined in Section 102(7) of the
Developmental Disabilities Assistance and Bill of Rights Act (42 U.S.C. 6001(8))
Program: The City's plan, process, and procedures to assist residents and distribute CDBG-
DR and/or other HUD housing -related funds.
Program Design: The selection and development of programs and activities based on a needs
assessment. The Program Design must include the type of housing activities that will be offered
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by the City; how the program will be marketed; how Fair Housing Objectives will be achieved,
as described in the AFHMP; and how funding will be prioritized as determined through a need's
assessment.
Program Income: Net income derived from the sale of program assets that exceeds $35,000
in the aggregate, in a single fiscal year, received by the City and directly generated from the
use of housing CDBG-DR funds.
Rental Activity: Acquisition, rehabilitation, or construction of affordable rental housing resulting
in structures where at least 51 percent of units are occupied by LMI persons. Income and rent
restrictions apply to the rental units to be built or assisted.
Responsible Entity (RE): Under 24 CFR Part 58, the term "responsible entity" (RE) means the
grantee receiving CDBG assistance. The responsible entity must complete the environmental
review process. The RE is responsible for ensuring compliance with NEPA and the Federal laws
and authorities has been achieved, for issuing the public notification, for submitting the request
for release of funds and certification, when required, and for ensuring the Environmental Review
Record (ERR) is complete
Single Family Home: A single -unit family residence detached or attached to other housing
structures.
Site Specific Checklist (SSC): The environmental compliance checklist that is required to
document environmental clearance before Federal funds are permitted to be awarded.
Slum and Blight National Objective: Activities which help to eliminate slum and blighted
conditions. (Use of this National Objective is limited due to its inability to contribute towards the
overall requirement for 70 percent LMI to benefit low- to moderate -income beneficiaries.) See
24 CFR 570.208(b).
Slum and Blight activities must meet the criteria of one of the three following categories:
• Prevent or eliminate slum and blight on an area basis;
• Prevent or eliminate slum and blight on a spot basis; or
• Be in an urban renewal area.
Small Business Administration (SBA): SBA's Office of Disaster Assistance (ODA) provides
affordable, timely and accessible financial assistance to Property owners, renters, and
businesses. The SBA low interest, long-term loans are the primary form of federal assistance
for the repair and rebuilding of nonfarm, private sector disaster losses.
Subrecipient: Cities, counties, Indian tribes, local governmental agencies (including COGs),
private non- profits (including faith -based organizations), or a for -profit entity authorized under
24 CFR 570.201(o). The definition of subrecipient does not include procured vendors, private
grant administrators, or contractors providing supplies, equipment, construction, or services
and may be further restricted by Program rules or other guidance including applications. See
vendor definition for further clarification.
Subrogation Agreement: An agreement executed by the beneficiary agreeing to repay any
duplicative assistance if the beneficiary later receives other disaster assistance for the same
purpose as disaster recovery funds already received.
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Substantial Damage: Damage of any origin sustained by a structure whereby the cost of
restoring the structure to its pre -damaged condition would equal or exceed 50 percent of the
market value of the structure before the damage occurred (44 CFR 59.1).
Texas Integrated Grant Reporting (TIGR): TIGR is the GLO system of record for all CDBG-
DR grant management and reporting.
Uniform Relocation Assistance and Real Property Acquisitions Policies Act of 1970, as
amended (Title 49 CFR Part 24) (42 U.S.C. 4601 et seq.) (URA): Applies to all acquisitions of
real property or displacements of persons resulting from federal or federally assisted program or
projects. URA's objective is to provide uniform, fair, and equitable treatment of persons whose
real property is acquired or who are displaced in connection with federally funded projects. For
the purposes of these guidelines, URA mostly applies to residential displacements in involuntary
(49 CFR Subpart B) acquisition or multifamily damaged/occupied activities that require the
relocation of the tenants. A displaced person is eligible to receive a rental assistance payment
that is calculated to cover a period of 42 months, as waived by the FR.
Urgent Need National Objective: An urgent need that exists because conditions pose serious
and immediate threat to the health or welfare of the community; the existing conditions are
recent or recently became urgent; and the subrecipient cannot finance the activities on its own
because other funding sources are not available. Subrecipients or the state must document how
each program and/or activity funded under this category responds to a disaster -related impact.
See 24 CFR 570.208(c).
Vendor: Vendors and private grant administrators procured by the state or subrecipients to
provide supplies, equipment, or services necessary to implement the Program and to serve
homeowner assistance needs. Upon approval, the vendor may implement the Program or act
on behalf of the GLO or the subrecipient.
Veteran: Under federal law, a veteran is any person who served honorably on active duty in
the armed forces of the United States. Discharges marked "general and under honorable
conditions" also qualify.
3.0 Program Design Requirements
3.1 National Objective
Recovery projects using CDBG-DR funds must meet one of the following HUD -designated
National Objectives to be an eligible housing activity:
• Benefiting Low- to Moderate -Income Individuals (LMI)- Low to moderate income people
are those having incomes not more than the "moderate -income' level (80% Area Median
Family Income) set by the federal government for the HUD assisted Housing Programs.
This income standard changes from year to year and varies by household size, county
and the metropolitan statistical area. See the eligibility section for information on
calculating income.
o Low- and Moderate -Housing (LMH) provides that any assisted activity that involves
the acquisition or rehabilitation of property to provide housing shall be considered
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to benefit persons of low- to moderate -income only to the extent such housing will,
upon completion, be occupied by such persons;
o Low- to Moderate -Buyout (LMB): Benefiting low -to moderate -income persons
where the award amount is greater than their post -disaster fair market value of the
property; and
o Preventing or eliminating Slum or Blight (SB) through buyout or acquisition with
demolition
• Meeting an Urgent Need (UN) by providing housing assistance to applicants making in
excess of 80 percent of the area median income (AMI)
The U.S. Department of Housing and Urban Development has established the requirement that
70% of the aggregate of CDBG-DR funds be utilized for the benefit of the low and moderate -
income population in the impacted area. the U.S. Department of Housing and Urban Development
has indicated they will only consider a waiver to this requirement if it can be adequately
demonstrated that the needs of the low- or moderate -income population within the impacted area
have had their needs sufficiently addressed or potentially if the impact is less than 70% low- or
moderate -income persons. As a result, the City will prioritize LMI applicants and provide ongoing
monitoring to ensure that 70% of the allocation is used benefiting LMI households. If the City
determines that the impacted population eligible for buyout assistance does not have enough LMI
households to meet the 70% LMI requirement, the City will seek a waiver from the GLO and
provide supporting data with its waiver request
The following National Objectives will be met through the City of Pearland local buyout program:
100% CDBG-DR
• The CDBG-DR buyout program
will aim to provide assistance to
households meeting the LMB
objective.
3.2 Needs Assessment Methodology
HMGP with CDBG-DR Match
• The HMGP program with CDBG-DR
match funds will aim to provide
assistance to households meeting the
LMH national objective
CDBG-DR funding requires that qualified data be used (HUD/FEMA/SBA), insurance data, or
other data as approved by the GLO in advance, to allocate the disaster funding. Qualified data
should be used to document the impact of the relevant storm on the LMI subcategories and aid
in developing a plan for targeting the use of buyout funds in the appropriate levels and to the
appropriate economic categories. Persons with accessibility or other special needs adaptations
should also be analyzed as part of the process.
100% CDBG-DR
• A Needs Analysis of data using
FEMA repetitive loss properties
and properties located in the 100
and 500 year floodplain was used
to determine the Target Buyout Area
and the proportions of funding
awarded that will be set aside to
benefit each LMI and non-LMI
economic group. The unmet
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HMGP with CDBG-DR Match
• A needs analysis of participants in
the HMGP program determined
that there are LMI participants in
the HMGP program that need
assistance with the 25% local
match that is normally placed on
the homeowners in HMGP
programs. The City solicited
interest in the HMGP match
needs analysis has determined
that 100% of the funds will be
allocated to LMI households in
the target buyout area.
3.3 Environmental Review Requirements & Process
program and received 6
applications for the CDBG-DR
Match.
CDBG-DR buyout assistance is contingent upon compliance with the National Environmental
Policy Act (NEPA) and any related environmental and historic preservation legislation and
executive orders, pursuant to Section 106 of the National Historic Preservation Act of 1966 (54
U.S.C. Section 306108). HUD allows allocation of administration funds to retain a qualified
historic professional.
Environmental review activities are carried out for site contamination and demolition control. All
sites must undergo a complete environmental review prior to any commitment of funds. The
environmental review shall document compliance with 24 CFR Part 58 and all related laws and
authorities. Properties with adverse environmental conditions will not be permitted to proceed
under housing activities unless the adverse conditions are corrected. No work can start on a site
until the environmental review is complete. The design of the environmental review is contingent
upon the funding source.
100% CDBG-DR
• The environmental review will be
performed in two tiers a broad
review and a site -specific review.
• The City will assume the role of
the Responsible Entity,
responsible for undertaking
compliance.
• The City will perform a tier 1 broad
level review on the target buyout
areas before HUD will release the
funds.
• A tier 2 review must be completed
for each site before the funds can
be committed to buying that
property. Lead and asbestos
testing will typically be reserved
for the site -specific review. The
Tier II ESA (site specific review)
serves as the first step in
remediation for any property with
contamination levels deemed
unsafe.
HMGP with CDBG-DR Match
• All HMGP funded properties have
already undergone an
environmental review prior to
FEMA eligibility determination.
• The City will assume the role of
the Responsible Entity and
undertake the responsibility of
sending the HMGP environmental
assessment documentation to the
GLO and ensuring the HMGP
environmental assessment is
adopted by HUD and an Authority
to Use Grant Funds is received
prior to the commitment of funds.
• Those properties that will be
receiving CDBG-DR funding for
their HMGP match will be required
to complete a site -specific review
prior to committing funds to buy
the property. The site -specific
review includes lead and
asbestos testing.
Regardless of funding source, if remediation activities are required for lead, the contractor will
obtain the necessary waste permits along with enclosure materials and/or paint removal
equipment. A certified abatement contractor will be procured. Warning signs will be posted; all
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residents and construction workers in the vicinity will be informed and protected from
contamination at the time of remediation. Waste will be securely stored and disposed of upon
completion of cleanup. A clearance examination will be performed by an independent party at
least one hour after the completed cleanup. If clearance fails, cleanup and/or abatement work will
be repeated for a subsequent examination. Residents will be notified of the nature and results of
the abatement work. If unsafe levels of lead are determined to exist in the soil, soil abatement will
be utilized in the form of soil removal and replacement or soil cleaning.
For asbestos, any building built prior to 1978 will require a qualified asbestos inspector to perform
a comprehensive building asbestos survey to locate and assess any presence of asbestos. If
there is asbestos and it is friable or damaged, HUD recommends it be removed. If it is not friable
or damaged, HUD recommends it, at a minimum, be encapsulated.
Applicants will also need to complete the 58.6 checklist for the desired buyout property. This
consists of questions regarding: National Flood Insurance Program participation, Coastal Barrier
Improvement Act compliance, and Runway Clear Zones compliance.
3.4 Timeliness of Application Status
The City of Pearland will ensure timely communication of application status to property owners
that voluntarily desire participation in the Program. Timeliness means multiple methods of
communication, such as websites, direct calls to property owners, emails, or other means that
provide property owners desiring participation in the Program with information about the status
and process of the Program at all phases. The City will ensure the accessibility and privacy of
individualized information for all applicants, frequency of applicant status updates, and personnel
or unit responsible for applicant's information on the status of recovery applications.
3.5 Affirmatively Furthering Fair Housing Review
The City maintains and updates its AFFH documents in the form of a 5-Year Consolidated Plan
with HUD, provided to the GLO prior to any request for funds. The City's AFFH includes an
assessment of the City's local demography, socioeconomic characteristics, housing configuration
and need, educational, transportation, health care opportunities, environmental hazards or
concerns, and all other factors material to the determination. The City's AFFH shows that projects
are likely to lessen area racial, ethnic, and low-income concentrations, and/or promote affordable
housing in low -poverty, non -minority areas in response to natural hazard related impacts. Race
dot -density mapping and other depictions of local conditions verify these conditions, as
information -sourced through the U.S. Census Bureau.
One condition placed on the City of Pearland during the GLO AFFH review of the intended buyout
program was:
The City of Pearland should maintain a free-standing participant log with all applicants with the
amount of the award in each area (acquisition, relocation assistance and HomebuyerAssistance),
and, where possible, the race or ethnicity of the applicant (since this is generally voluntary
information, if it is not obtainable, that should be indicated) for each applicant whether awarded
or not. Personally Identifiable Information should not be included (social security numbers, driver's
license information or mortgage information) as it is not relevant for this review. A log of this nature
will expedite the review for GLO monitors or outside parties to ensure the program is in keeping
with the goals of the Affirmatively Furthering Fair Housing Final Rule.
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The City of Pearland will utilize HUD data, local data, and local knowledge to affirmatively further
fair housing opportunities in the City's jurisdiction. In accordance with GLO guidelines, the City
will complete an AFFH analysis. In the event that the racial and ethnic participation cannot be
achieved within the 70% LMI program requirements, the incomes of those who do not meet the
LMI requirement will be included in the list maintained by the City and added as an exhibit to the
certification.
3.6 Cost Effectiveness Verification
The City has established the cost-effectiveness of proposed buyout activities compared to other
mitigation measures. The City will complete any and all necessary cost-effectiveness measures
(Benefit -Cost Analysis — BCA) as applicable for future events when public assistance is requested
and required for disaster recovery and/or mitigation purposes.
3.7 Tie -Back to Hurricane Harvey
The City is obligated to only offer CDBG-DR housing assistance to properties to affected by
Hurricane Harvey. HUD requires that all projects funded by this allocation be related to direct or
indirect storm impact. From the February 2018 Federal Register notice:
Clarification of disaster -related activities. All CDBG—DR funded activities must clearly
address an impact of the disaster for which funding was allocated. Given standard CDBG
requirements, this means each activity must: (1) Be a CDBG-eligible activity (or be eligible
under a waiver or alternative requirement in this notice); (2) meet a national objective; and (3)
address a direct or indirect impact from the major disaster in a Presidentially -declared county.
To comply with the federal requirement, the City will verify that each property purchased under
the buyout program was damaged by Hurricane Harvey. See Section 5.4.4 for more information.
4.0 Program Design & Objectives
4.1 Dual Design
The buyout program is receiving funding from two different federal sources HUD CDBG-DR
funding and FEMA HMGP funding. Each funding source has it's own set of requirements for
program design. Therefore, the program design will be split into two sections, the houses
receiving solely CDBG-DR funding and those that are also receiving HMGP funding.
The program aims to buyout 10 homes with 100% CDBG-DR funding and 6 homes with 75%
HMGP and 25% CDBG-DR funding.
The homes for the HMGP program have already been selected through participants of the HMGP
program that submitted voluntary application forms. Applicants can apply for participation in the
CDBG-DR program.
4.2 Voluntary Buyout Program
HUD authorizes the use of Buyout and Acquisition programs to 1. Reduce risk to homeowners
from the effects of subsequent disasters, 2. Assist in the recovery of low- and moderate -income
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households and 3. Protect taxpayer resources that might otherwise be needed after a disaster in
the same area (80 FR 72102).
Buyout programs support floodplain management goals, hazard mitigation and resiliency by
removing homeowners from the floodplain to minimize the possibility of future flooding to the
home.
The program will not be offering incentives at the time these guidelines were enacted, but the City
reserves the opportunity to explore changing this plan if allowable by the General Land Office.
This is a voluntary program. Therefore, transactions must not use threat or use of eminent domain
and meet requirements set forth in 49 CFR 24.101(b)(1) as follows:
• No specific site or property needs to be acquired.
• The property to be acquired is not part of an intended, planned, or designated project area
where all or substantially all of the property within the area is to be acquired within specific
time limits.
• The City of Pearland will not acquire the property if negotiations fail to result in an amicable
agreement and the owner is so informed in writing.
• The City of Pearland will inform the owner in writing of what it believes to be the market
value of the property.
4.3 Program Objectives
The primary focus of the local buyout program is to provide relief for individuals affected by
Hurricane Harvey while complying with all CDBG-DR requirements and addressing recognized
impediments to fair housing choice as required under the Fair Housing Act. All housing activities
will consider the following objectives:
• Prioritize income -qualified households and properties located in flood hazard areas while
affirmatively furthering fair housing. Applications will be evaluated for priority status based
on the following criteria:
• Assist low -to -moderate income (LMI) households as top priority. LMI households will be
prioritized over urgent need households.
• Assist in moving eligible homeowners out of harm's way. Only land that contained a
structure at the time of the disaster will qualify to participate in the Buyout.
• Assist and prioritize homeowners with additional social characteristics that may qualify the
household as historically vulnerable to recovery barriers such as: households with
members that are age -dependent meaning 5 years or under or 65 years or over,
individuals under the age of 18, disabled, and/or Veteran households.
4.4 Buyout Target Areas
The Needs Assessment determined buyout target areas for the selected programs. Only
properties located in the Buyout Target Areas are eligible for the local buyout program. The
Buyout Target Area is different for each funding source.
100% CDBG-DR
The CDBG-DR Buyout Target Areas include properties located in the Disaster Risk Reduction
Areas.
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• Disaster Risk Reduction Area: To conduct an acquisition in a Disaster Risk Reduction
Area the City has established criteria in its policies and procedures to designate the
area subject to the acquisition. To designate an area, the City of Pearland demonstrated
that: (1) the hazard must have been caused or exacerbated by the Presidentially
declared disaster; (2) the hazard must be a predictable environmental threat to the
safety and well-being of inhabitants as evidenced by the best available data and
science; and the Disaster Risk Reduction Area must be clearly delineated so that HUD
and the public may easily determine which properties are located within the designated
area.
Applicants located in an area designated as Disaster Risk Reduction Areas (DRRA) by the City
of Pearland may be assisted if:
• The applicant is offered/accepts a fair market value offer to relocate outside of the
floodplain or to a low -risk area, e.g., moving costs, down payment assistance, (incentive
costs must be for a specific purposed and must be properly defined for award).
• The applicant was required to maintain flood insurance at the time of the event and still
has unmet recovery needs.
HMGP with CDBG-DR Match
• HMGP Beneficiaries are homes that are repetitive loss properties.
• Repetitive loss properties are the buyout target area for HMGP projects. Therefore, all
HMGP applicants meet the buyout target area requirement for CDBG-DR.
4.5 Eligible Program Costs
The City's buyout program will focus efforts on decreasing risk and increasing resiliency by
demolishing residential units from severe and repetitive flood -prone areas of Pearland. The
program will involve an in-depth process that will include several costs, both direct costs and
administrative/delivery costs, to ensure the program's activities meet all applicable federal, state
and local guidelines. The City anticipates the following eligible costs that will be paid through
the allocation:
o Home Purchase Costs
o Home Demolition and Disposal Costs
o Environmental Services Costs (Tier I and Tier II)
o Appraisal Costs
o Closing costs
o Recording fees, transfer taxes, documentary stamps, evidence of title, boundary
surveys, legal descriptions of the real property and similar expenses incidental to
convey the real property to the applicant
o Case Management Costs
o Program Management and Administrative Costs
Payments related to the above line items are deemed lawful and are eligible uses of the City's
buyout allocation.
4.6 Eligible Property Types
• Single-family owner -occupied units within the City's jurisdiction.
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• Both Stick built and Manufactured Housing Units (MHUs/mobile homes) are an
eligible structure type.
4.7 Amount of Assistance
The City of Pearland has allocated funding from the U.S. Department of Housing and Urban
Development (HUD) via the GLO for disaster recovery projects related to the 2017 federally
declared Hurricane Harvey disaster event. The City will use $2,727,372 in CDBG-DR funds for
the matching funds and 100% buyout of approximately 10 properties. The funding breakdown for
the two programs is the following:
100% CDBG-DR
• $1,829,600 for buyout of 10 homes
• Will offer up to 100% of assistance
provided and will only include the
amount needed by the applicant to
achieve homeownership.
• The amount of assistance would be
based on the FMV minus Duplication
of Benefits.
• The FMV will be determined based on
pre -disaster value of the residence.
• An appraisal will determine the fair
market value of the property. The total
need of each applicant is equivalent to
the appraisal value. The City will then
determine what assistance the
applicant has already received as a
benefit towards the property that has
not been utilized for its intended
purpose. Examples include NFIP claim
disbursements or FEMA grants that
were intended for property repair but
were not utilized for property repair.
These unused monies reduce the
applicant need for resettlement and
are deducted from the total need. The
remaining total need after the
deductions represent the unmet need.
The intent of the Local Buyout Program
is to determine each applicant's unmet
need and deliver the total unmet need
to them at a real estate closing in
exchange for title to the subject
property.
• A statement of the amount offered as
compensation, description and
location of the real property, and a list
of buildings, structures, or other
improvements must be provided to the
applicant. The final settlement (buyout
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HMGP with CDBG-DR Match
• $305,900 for cost -share of HMGP
projects.
• HMGP will pay up to 75% of the
amount needed for the applicant to
achieve homeownership.
• CDBG-DR will match up to 100% of the
remaining assistance needed to
achieve homeownership.
• The amount of assistance would be
based on the FMV minus Duplication
of Benefits.
• The FMV will be determined based on
post -disaster value of the residence.
• An appraisal will determine the fair
market value of the property. The total
need of each applicant is equivalent to
the appraisal value. The City will then
determine what assistance the
applicant has already received as a
benefit towards the property that has
not been utilized for its intended
purpose. Examples include NFIP claim
disbursements or FEMA grants that
were intended for property repair but
were not utilized for property repair.
These unused monies reduce the
applicant need for resettlement and
are deducted from the total need. The
remaining total need after the
deductions represent the unmet need.
The intent of the Local Buyout Program
is to determine each applicant's unmet
need and deliver the total unmet need
to them at a real estate closing in
exchange for title to the subject
property.
• The HMGP program will provide
statement of the amount offered as
compensation, description and
offer) must be properly documented
and assistance calculations must show
how the subrecipient determined the
final offer.
location of the real property, and a list
of buildings, structures, or other
improvements must be provided to the
applicant. The final settlement must be
properly documented, and assistance
calculations must show how HMGP
determined the final offer.
• Using the HMGP fair market value,
CDBG-DR will pay the unpaid amount
of the fair market value.
The City recognizes that some property owners will not agree with the contracted appraiser's
valuation of their home. Property valuations contain many variables and two appraisers may reach
differing conclusions regarding the fair market value of the same property. As a result, the City
has developed the following process available to property owners for them to formally contest and
appeal the determined fair market value of their properties. Property owners may not change the
value of their properties in any method outside of the following process:
1. Property owner informs the City in writing that they intend to appeal.
2. Property owner hires their own appraiser to conduct an appraisal of the home. The appraiser
must be licensed/certified to conduct real estate appraisals.
3. The property owner provides the new appraisal report to the City.
4. If the new appraisal report shows a value increase of 15% or less over the original appraisal
report, the new value is automatically accepted by the City. A new offer is calculated and
provided to the property owner.
5. If the new appraisal report shows a value less than the original appraisal report, the original
value is used, and the offer remains unchanged.
6. If the new appraisal report shows a value increase of greater than 15%, the City must order
a third appraisal at the program's expense. The value of the middle appraisal (the median
value) will be used for the purposes of generating the offer amount.
4.7 Disposal of Storm Damaged Property
Once the applicant has sold a lot or home as result of participation within the Acquisition Program,
the applicant's storm damaged property will be demolished. The City of Pearland will complete
the demolition of the home within 45 days of vacancy. The cost of the demolition will be charged
to the main funding source of the program.
4.8 End Use of Acquired Real Property
The City of Pearland will use buyouts strategically as a means of acquiring contiguous parcels
of land, whenever possible, for uses compatible with open space, recreational, natural floodplain
functions, other ecosystem restoration, or wetlands management practices. For both the CDBG-
DR and HMGP programs, all structures on the properties will be demolished.
Real property acquired through both programs will result in the recording of a deed restriction
that designates the buyout property as green space in perpetuity, primarily to be used for
drainage improvements. Reconstruction will not occur on the identified lots; lots will be
maintained as flooding buffer zones. Post -demolition property maintenance costs will be paid
for by the City in perpetuity.
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The filing of deed restricting records will be filed with the applicable county's Justice of the
Peace. The City's Right -of -Way Maintenance program personnel will be charged with
maintaining day-to-day greenspace characteristics of the property and the Community
Development Department — Planning (Land Use) Division will document the property's restricted
characteristics in the City's land use management system (Trak-It), backed up by its Geographic
Information System land use data files on all properties within the City. This will prevent any
erroneous sale or rezoning or other inappropriate acts of non-compliance with the restrictions
from inadvertently taking place.
5.0 Program Implementation
5.1 Affirmative Marketing Outreach Plan
The City is committed to affirmatively furthering fair housing as follows:
• The City will subscribe to using the GLO's Affirmative Fair Housing Marketing Plan
to conduct outreach to the community, based on HUD regulations, if applicable.
• The City's goal will be to ensure that outreach and communication efforts reach
eligible survivors from all racial, ethnic, national origin, religious, familial status, the
disabled, "special needs," and gender groups; limited to the type of housing program
administered by the City.
• Because the City is not a public housing authority and does not utilize CDBG funds
of any type for the purpose of administering new home construction, HOME
program activities, nor does it acquire housing for reallocation to low -moderate
income purposes, the City will not ensure that it will keep the public:
o Fully informed of vacant units available for sale and/or rent;
o Encouraged to apply for purchase, rehabilitation, and/or rent; and
o Given the opportunity to buy and/or rent the unit of their choice.
• Because the City does operate a service -delivery model that includes housing
rehabilitation and repairs for low -moderate income Pearland residents, it will ensure
that applicable and qualifying residents are:
o Given the opportunity to rehabilitate their primary residence that sustained
damages due to the event and/or its after-effects.
• Emphasis will be focused on successful outreach to LMI areas and those
communities with minority concentrations that were affected by the disaster.
Outreach efforts may include door- to -door canvassing and special outreach efforts
to hard -to -reach populations (e.g., seniors, and persons with severe disabilities who
either do not have information about the resources available or are unable to apply
for resources).
• In addition to marketing through widely available media outlets, efforts may be taken
to affirmatively market the CDBG-DR Program as follows:
o Advertise with the local media outlets, including newspapers and broadcast
media, that provide unique access for persons who are considered members
of a protected class under the Fair Housing Act;
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o Include flyers in utility and tax bills advertising the Program;
o Reach out to public or non-profit organizations and hold/attend community
meetings; and
o Other forms of outreach tailored to reaching the eligible population, including
door -to- door outreach, and on the weekends, if necessary.
• Measures will be taken to make the Program accessible to persons who are
considered members of a protected class under the Fair Housing Act by holding
informational meetings in buildings that are compliant with the Americans with
Disabilities Act (ADA), providing sign language assistance when requested and
providing special assistance for those who are visually impaired when requested.
• Applications and forms will be offered in English and Spanish, but the City will
annually assess the locality for language diversity priorities involving other
languages prevailing in the region, in accordance with Title VI of the Civil Rights Act
of 1964, including persons with disabilities (24 CFR 8.6), Limited English
Proficiency (LEP), and other fair housing and civil rights requirements such as the
effective communication requirements under the Americans with Disabilities Act.
Every effort will be made to assist such applicants in the application process.
• Case managers will help navigate and inform survivors who may qualify for
acquisition and buyout of their damaged unit to remove them from flood hazards,
environmental hazards, and other unsafe conditions while meeting AFFH
obligations.
• Documentation of all marketing measures used, including copies of all
advertisements and announcements, will be retained and made available to the
public upon request.
• Subrecipients and the state will be required to use the Fair Housing logo in Program
advertising, post Fair Housing posters and related information and, in general,
inform the public of its rights under Fair Housing regulations law.
• Evaluation of outreach activities and applications received will be necessary to
determine if outreach is successful and applications that are being received
accurately reflect the socioeconomic and other forms of demographic diversity.
Evaluation should be an ongoing process. The City will assist its applicants by
reviewing applications, and/or subrecipients by reviewing application intake reports
before subrecipients begin qualifying applicants, and periodically thereafter.
• The City may be required to coordinate with HUD -certified housing counseling
organizations in some cases, to ensure that information and services are made
available to both renters and homeowners. This will be evaluated by City staff on a
case -by -case basis and in accordance with applicable Program regulations.
5.2 Intake and Counseling
Applications will be used to prevent any pre-screening of applicants without a written application
being taken. Anyone who makes an inquiry about the Program will be provided with a
standardized Buyout program application package to complete. All such inquiries will be
reported in a format to be provided to the City. Applications should be submitted to City of
Pearland, Administration, 3519 Liberty Drive, Pearland TX 77581.
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Participants in the buyout are required to certify all eligibility criteria and all documentation
submitted by the applicant must contain a signed acknowledgement agreeing to the following
false claims statement:
"Warning: Any person who knowingly makes a false claim or statement to HUD may be subject
to civil or criminal penalties under 18 U.S.C. 287, 1001, and 31 U.S.C. 3729."
Case managers and/or interpreters will be able to communicate with the applicant in their primary
language. Additionally, effective communications with persons with disabilities pursuant to 24
CFR 8.6 and other fair housing and civil rights requirements (such as the effective communication
requirements under section 504 and the Americans with Disabilities Act).
5.3 Applicant Prioritization
It is expected that there will be more eligible applicants than can be served with available funds.
The following prioritization schedule will determine the households that are served first.
This program will prioritize LMI property owners as the only eligible type.
The City has elected to utilize additional prioritization procedures beyond the LMI prioritization.
The following additional characteristics are weighted according to prioritization. Applicants may
receive points for more than one characteristic. Applicants will be prioritized in order of points
highest to lowest.
Points for the following characteristics are as follows:
• Households with FEMA verified substantial damage-5 points
• Disabled persons- -2 points
• Elderly persons- 2 points
• Ethnic/racial minorities- 1 point
• Female heads of household- 1 point
• Households with members below the age of 18- 1 point
• Veterans- 1 point
•
When multiple applicants have the same point total, the applications will be considered on a first
come first serve basis depending on the date they submitted their application to the City.
5.4 Applicant Eligibility Requirements
Owners of properties must meet certain requirements in order to be eligible to receive buyout
assistance. Eligibility does not guarantee assistance since a prioritization strategy within LMI
economic subgroups has been established. It is expected that there will be more eligible
applicants than can be served with available funds. Applicant eligibility will be reviewed for both
the HMGP match program and the 100% CDBG-DR funded program.
To qualify, all of the following must be applicable to the homeowner:
1. Buyout Target Area
Only properties located in buyout target areas are eligible. See section 4.4 for buyout
target areas.
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2. Income Determination
The Local Buyout Program is only for eligible LMI people. Low to moderate income
people are those having incomes not more than the "moderate -income' level (80% Area
Median Family Income) set by the federal government for the HUD assisted Housing
Programs. This income standard changes from year to year and varies by household
size, county and the metropolitan statistical area. Applicants that do not meet the LMI
threshold will not be considered eligible.
In order to verify the income eligibility of each household applying for assistance, the
most current income limits, published annually by HUD, shall be used by the City of
Pearland at the time assistance is provided.
FY 2020 Income Limit
Area
Median Family
Income FY 2020 Income Limit
Category
Explanation
Persons in Family
1 2 3 4 5 6 7 8
Brazoria County, TX
HUD Metro FMR Area
$104,200
Very Low (50%)
Income Limits ($)
I
35,600 40,650 45,750 50,800 54,900 58,950 63,000 67,100
Extremely Low
Income Limits ($)* 21,350 24,400 27,450 30,500 32,950 35,400 39,640 44,120
Explanation
Low (80%) Income
Limits ($) 54,950 62,800 70,650 78,500 84,800 91,100 97,350 103,650
Explanation
NOTE: Brazoria County is part of the Brazoria County, TX HUD Metro FMR Area, so all information presented here applies to all of the
Brazoria County, TX HUD Metro FMR Area. HUD generally uses the Office of Management and Budget (OMB) area definitions in the
calculation of income limit program parameters. However, to ensure that program parameters do not vary significantly due to area
definition changes, HUD has used custom geographic definitions for the Brazoria County, TX HUD Metro FMR Area.
The Brazoria County, TX HUD Metro FMR Area contains the following areas: Brazoria County, TX;
The household income level for each program applicant will be determined during an
in -person or remotely conducted intake meeting with the property owner(s). The City
will collect household income documentation and will verify the household income
using the HUD CDBG-DR income certification calculator found at
https://www.hudexchange.info/incomecalculator/.
3. Unmet Needs
HUD guidance stipulates that CDBG funds should be last in the hierarchy of recovery
funds made available to beneficiaries. From Federal Register Notice Vol. 76 No. 221:
Since CDBG disaster recovery provides long-term recovery assistance via
supplemental congressional appropriations and falls lower in the hierarchy of delivery
than FEMA or SBA assistance, it is intended to supplement rather than supplant these
sources of assistance.
Only applicants with an unmet need related to the Hurricane Harvey event will be
eligible.
The City will determine each applicant's unmet need through the following process:
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An appraisal will determine the fair market value of the property. The total need of
each applicant is equivalent to the appraisal value. The City will then determine what
assistance the applicant has already received as a benefit towards the property that
has not been utilized for its intended purpose. Examples include NFIP claim
disbursements or FEMA grants that were intended for property repair but were not
utilized for property repair. These unused monies reduce the applicant need for
resettlement and are deducted from the total need. In addition, any monies reviewed
for acquisition from other sources such as HMGP will be reduced from the total need.
The remaining total need after the deductions represent the unmet need. The intent
of Pearland's Program is to determine each applicant's unmet need and deliver the
total unmet need to them at a real estate closing in exchange for title to the subject
property.
4. Proof of Event Damage
For assistance activities, the unit must demonstrate that the damage or destruction to unit
occurred by Hurricane Harvey. Disaster damage can be documented as follows:
• FEMA, Small Business Administration (SBA) or Insurance Award Letters.
i. If the above -referenced documentation is not available, an inspection
report/Damage Assessment (complete with photos of the damage and a
written assessment of the damage with each photo taken) conducted by a
certified, licensed, or experienced inspector (HQS, TREC license, or similar
experience) must be supplied by the property owner to the City, that certifies
the damage occurred as a result of the event;
ii. the cost of the inspection may be covered by the property owner/applicant if
feasible, or by the City and completed by qualified third party professionals or
City officials that meet HQS and/or TREC qualifications; and
iii. If FEMA, SBA, or Insurance Award Letters are not available and an inspection
report is inconclusive as to the cause of the damage, the property owner may
provide alternative evidence, such as neighborhood -level media reports or
documentation of damage by disaster response/relief organizations. City
approval is required for this form of proof to be used and may require additional
authorization for its use by the General Land Office.
If an applicant was denied assistance by FEMA, assistance through the CDBG-DR
Program may still be available. Applicants are not solely ineligible based on a denial by
FEMA.
A Damage Assessment must be performed by a certified, licensed or experienced
inspector (HQS, TREC license or similar experience) to specifically and clearly
document event related damage via photographic evidence and detailed narratives if
the survivor did not receive FEMA or SBA funds for the repair or replacement of a home.
5. Proof of Ownership
The applicant must be an individual who owns the property to be bought out due to
damage from the event. Ownership can be documented as follows:
• Provide a copy of a valid deed of trust or warranty deed that is recorded in the county
records which cites the applicant's name.
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• For manufactured housing units (MHU), a Statement of Ownership from the Texas
Department of Housing & Community Affairs, Manufactured Housing Division
(TDHCA) must be provided. If the Statement of Ownership cannot be provided, GLO
may accept alternate forms of ownership as further defined below.
• If an applicant owns a mobile home and there is a lien on the property, Through the
purchase of the property, The City of Pearland will work to ensure that the lien is paid
off to the mortgage company.
For the purposes of federally funded disaster recovery programs, alternative methods
to document ownership may be proven in the following manner:
• Applicants may prove ownership by providing documentation and completing a
notarized affidavit that certifies one of the following circumstances applies:
• No other party has the right to claim ownership;
• Everyone who has the right to claim ownership has agreed to participate in the
program; or
• A party who has the right to claim ownership could not be located (after all
reasonable attempts have been made).
• Subject to approval by the GLO, instead of a copy of the deed, alternative
documentation proving ownership may be provided including (in order of preference):
• Tax receipts in the name of the applicant reflecting payment of applicable
property taxes on the property for the prior taxable year;
• Home insurance in the name of the applicant reflecting that a current policy
was in place at the time Hurricane Harvey made landfall;
• Utility bills reflecting the address of the property and the name of the applicant
and/or co -applicants; or
• Other documentation deemed to be acceptable by the GLO.
The documentation must show that the applicant was the person responsible for paying
for these items at the time of the disaster.
6. Clear Title
Title clearance is a necessary component of any traditional real estate transaction. The
City of Pearland will only purchase properties that have clear title as determined by a
full title search done by the City to ensure a clear title on the property. It is the
responsibility of the property owner to assist the title company with obtaining clear title.
All title issues must be resolved prior to closing. The title company is required to provide
title insurance on the property. In addition, the City will provide owners with referrals
and recommendations on title clearance assistance, such as local legal aid
organizations. If an applicant is unable to clear title within a reasonable amount of time,
the buyout program may determine that they are ineligible for assistance. In these
cases, the City will establish the closing deadline at least 90 days in advance and inform
the property owner with a documented phone call and certified mailing.
7. Citizenship
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The homeowner must be a United States citizen, or an eligible immigrant as verified by
a signed declaration and one of the following:
1. U.S. Citizen
a. United States Passport
b. Birth Certificate
i. In the absence of a birth certificate, an elderly applicant may
substitute a Social Security Benefits Determination document for
the birth certificate.
c. Certificate of Naturalization
2. Eligible Immigrant
a. Form 1-94 Arrival Departure Record marked with one of the following:
i. Admitted as a Refugee Pursuant to Section 207
ii. Asylum granted as Pursuant to Section 208
iii. Section 243 (h) or "Deportation" stayed by the Attorney General
iv. Paroled Pursuant to section 221 (s)(5) of the USCIS
b. Form 1-94 Arrival -Departure Record with no annotation accompanied by:
i. Final court decision granting asylum (only if no appeal is taken)
ii. Letter from an USCIS asylum officer granting asylum (if application
is filed on or after 10/1/1990) or from an USCIS district director
granting asylum (application filed before 10/1/1990)
iii. Court decision granting withholding of deportation
iv. Letter from an asylum officer granting withholding or deportation (if
application filed on or after 10/1/1990)
v. Receipt issued by the USCIS indicating that an application for
issuance of a replacement document in one of the above listed
categories has been made and the applicant's entitlement to the
document has been verified
c. Form 1-551 Alien registration receipt card
8. Principal Residency
The unit to be purchased through the Buyout Program must have been the applicant's
principal residence during the time of the event. Owner residency will be confirmed via
homestead exemption in the property tax records in the applicant's name during the
storm period. This will be verified through Brazoria County Appraisal District (BCAD).
Should the property tax records indicate an established homestead exemption, the
property is deemed occupied by the applicant. In the absence of confirmation from
BCAD of a homestead exemption, the following hierarchy will be used to establish
occupancy (Note: All occupancy documentation must be from one month prior to the
event, in the applicant or co -applicant's name and the damaged address):
1. Property tax records demonstrating homestead exemption for the property;
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2. Copy of water, electric or gas bill. The bill must validate that service was provided
in the month of or the month prior to the storm;
3. Official letter from water, electric or gas company. The letter must confirm service
in the month of or the month prior to the event;
4. Other qualified documentation proof may be presented to the city for consideration.
Special Residency Circumstances
1. Applicants who are active duty military personnel who own a storm -damaged home
in Pearland, Brazoria County, currently assigned to duty away from their home or
were assigned away during the time of the storm event are eligible.
2. Homeowners who have been incapacitated due to illness in Pearland, Brazoria
County or were incapacitated at the time of the storm are eligible.
3. If an applicant was incarcerated at the time of the storm but are no longer
incarcerated is eligible. However, if the applicant is incarcerated at the time
application is made, they are required to give someone Power of Attorney on his
or her behalf.
4. If an applicant resided in a nursing home at the time of the storm but are no longer
residing in the nursing home is eligible. However, if the applicant is living at a
nursing facility during the time of application, they are required to give someone
Power of Attorney on his or her behalf.
Death of Eligible Homeowner
1. If a homeowner passes away before closing the transaction occurs, the heir(s) to
the property may be eligible to proceed with the sale of the property once
succession is established. The heir(s) must meet all eligibility requirements.
2. If the eligible applicant dies and leaves their damaged property to a business entity,
the application is no longer eligible for assistance.
9. Second Homes
The City's goal is to provide buyout assistance to as many volunteers as possible
within the Buyout Interest Area. However, owners volunteering for the buyout program
on homes that qualify and considered a `second' home (refer to Table 3) at the time of
the disaster event, or thereafter, are often not eligible to participate in the program and
would not be eligible for residential incentives, if offered.
Table 4.7a Second Home
Second
Buyout of Second
Housing
Home Definition
Home(s)
Incentives Allowable?
Allowable?
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2015
81 FR 39687
IRS Publication 936'
No
No
2016
IRS Publication 936
No
No
81 FR 83254
2017
IRS Publication 936
No
No
PL 115-31 (82 FR 61320)
83FR 5844
2017
A second home is
Yes
No
PL 115-123 (83 FR 5844)
defined under this
notice as a home that
is not the primary
residence of the
owner, a tenant, or
any occupant at the
time of the storm or at
the time of application
for assistance.
10. Property Taxes
Applicant must be current on property taxes, be awarded a tax deferral as allowed
under Section 33.06 of the Texas Tax Code, qualified for and received a tax exemption
pursuant to Section 11.182 of the Texas Tax Code; or entered a payment plan with
BCAD and is current on payments.
The City will run the necessary title check or validate property tax payments with the
applicable taxing authorities to ensure that applicant is eligible based on current
property taxes. City staff have access to property tax records for each applicable county
the City is located, and will conduct reviews of payment information of property owners
participating in the buyout program.
An initial review of the payment status of program participants will be conducted online,
direct contact with property tax officials will be made to verify that information and the
ensuing title check will validate all information on hand prior to closing.
11. Child Support 5
All adult household members must be current on child support payments. If the
household member is not current on payments, that individual will be required to enter
a payment plan that will be obtained from the Office of the Attorney General (OAG). A
copy of the signed payment plan by all applicable parties, along with documentation
showing that they are current must be provided as proof.
12. Environmental Review
An environmental review must be performed on the property prior to federal funds being
committed by The City of Pearland (24 CFR Parts 50, 58, 574, 582, 583, and 970). No
' IRS definition of Second homes- A second home is a home that you choose to treat as your second home. Second home not
rented out- If you have a second home that you don't hold out for rent or resale to others at any time during the year, you can treat it
as a qualified home. You don't have to use the home during the year. Second home rented out- If you have a second home and
rent it out part of the year, you also must use it as a home during the year for it to be a qualified home. You must use this home
more then 14 days or more than 10% of the number of days during the year that the home is rented at fair rental, whichever is
longer. If you don't use the home long enough, it is considered rental property and not a second home.
S Family Code, Title 5, Section 231.006
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commitment or disbursement of funds will occur prior to the completion of this review.
The environmental review shall document compliance with 24 CFR Part 58 and all
related laws, authorities, and executive orders.
Properties located where federal assistance is not permitted are ineligible for
assistance. Properties must be in compliance with Environmental Code 24 CFR Part
58. Specific instructions concerning environmental requirements will be made available
to all recipients, sub -recipients, or Contractors. See Section 3.3 for more information.
13. Duplication of Benefits (DOB) Review and Verification
Applications are reviewed to determine if previous funding awarded to the applicant
was appropriately used on the home and if any funds were received for the same
purpose. The applicant must have an unmet need to move forward in the Program.
The City and the state will calculate and verify the applicants DOB to ensure accuracy.
Applicants will be asked to provide receipts and proof of repairs. An inspection will be
completed to verify repair was performed and the quality of the repair (Standard,
Average and High -Grade) to determine total applicant expenditure. In addition, the City
and state will determine if insurance was required under the terms of the applicant's
mortgage. Note: The applicant award cannot exceed program limits.
The City will use GLO's DOB Calculation Form. The form can be found at
http://recovery.texas.gov/. The DOB is the amount of assistance received (minus
expenditures) in excess of the total need. The GLO's DOB Calculation Form will be used
to determine the DOB amount and reduce it from the total need to determine the total
award amount. If the total awarded assistance is greater than or equal to the total need,
then a positive dollar amount will indicate a DOB. To reconcile the DOB amount owed,
the CDBG-DR award offered will be reduced by the DOB amount.
In addition, the City will also develop, and update policies and procedures related to
duplication of benefits when determining unmet need, as required by the GLO. The
policies and procedures will include recapture instructions (e.g., applicant is currently
appealing or suing their insurance company; therefore, recapture of future funds will be
completed by the City) and monitoring procedures to include priorities and frequency
to comply with an executed Subrogation Agreement.
The most common sources of disaster recovery assistance for homeowner's is through
NFIP, insurance, FEMA, and SBA. In some instances, a homeowner may receive
assistance from local non-profit agencies, faith -based organizations, other relief and/or
governmental entities. Duplicative assistance includes, but not limited to, the following:
• National Flood Insurance Program (NFIP): Insurance proceeds received must
be disclosed by the Homeowner(s) and verified by the Program. Payments
received for building loss are classified as repair assistance and will be considered
duplicative assistance.
• Private Insurance: All insurance proceeds received by private insurance must be
disclosed by the Homeowner(s) and verified by the Program by obtaining a final
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claims letter from the insurance carrier or contacting the company. Any funds
received that are considered as building loss or sewer backup will be classified as
repair assistance and will be considered duplicative.
• Federal Emergency Management Agency (FEMA): FEMA proceeds received
must be disclosed by the Homeowner(s) and must be verified by the Program.
Funds received for property repair will be considered duplicative.
• Small Business Administration (SBA): SBA proceeds received and/or approved
are required to be disclosed and verified by the Program. An applicant with a loan
of less than $14,000 must provide proper documentation that s/he is current on
their repayment plan and outstanding SBA loans must be satisfied prior to the City
taking ownership of the property. The applicant award is reduced by the
outstanding amount at closing; hence, the loan is satisfied prior to the city taking
ownership. An SBA loan exceeding $14,000 is secured against the subject
property and will be satisfied at closing pursuant to traditional real estate closing
procedures. Duplication of Benefits for SBA loans are deducted at closing,
reducing the applicant's net proceeds as opposed to the time the offer is made.
• Other: Any other funds received from other sources, must be disclosed by the
homeowner(s) and verified by the program.
At the time of application, the City of Pearland will require all assisted applicants to sign
and execute a Subrogation Agreement authorizing the City to collect future claims or
funds paid to the applicant for 2017 Buyout Assistance. If an applicant is suing or
currently in litigation with private insurance or FEMA, the applicant will be required to
sign a duplication of benefit repayment agreement in the event that additional financial
assistance is granted to the homeowner after litigation is complete. Monitoring
procedures to include priorities and frequency to comply with an executed Subrogation
Agreement.
14. Flood Insurance Requirements/Verification
Flood Disaster Protection Act of 1973 as amended and Sec. 582(a) of the National
Flood Insurance Reform Act of 1994 - compliance with the legal requirements of
Section 582(a) mandates that HUD flood disaster assistance that is made available in
an Special Flood Hazard Areas (SFHAs) may not be used to make a payment
(including any loan assistance payment) to a person for repair, replacement, or
restoration for flood damage to any personal, residential or commercial property if: (1)
the person had previously received federal flood disaster assistance conditioned on
obtaining and maintaining flood insurance; and (2) that person failed to obtain and
maintain flood insurance as required under applicable federal law on such property.
15. Identity Verification/Credit Check
A verification of owner's identity will be checked via credit check; however, the owners
credit score is not taken into consideration in determining program eligibility. The credit
report is reviewed to verify the following:
1. Identity of Applicant
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2. No Judgments or liens on property (i.e. tax lien)
3. Current on property taxes or be awarded a tax deferral as allowed under Section
33.06 of the Texas Tax Code; qualified for and received a tax exemption pursuant
to Section 11.182 of the Texas Tax Code; or entered a payment plan with BCAD
and is current on payments.
Note: CDBG-DR funds may not be used to pay delinquent taxes and/or child support
back payments
5.5 Inspection and Closing Requirements
Each buyout property will be inspected for pre -closing conditions prior to acquisition by the City.
The owner must remove all personal property from the residence prior to the day of closing. This
includes clearing of abandoned items and the cancellation of all utilities. The Buyout process will
not be completed until all abandoned items have been removed. The owner will not be able to
return to the property to retrieve any personal belongings or other items after closing.
Closing procedures applicable to the State of Texas will be used to transact the sale of the
property, legally and otherwise, with the following actions having taken place or doing so during
the closing, after a property owner has received a letter acknowledging their participation in the
buyout program:
1. Signed Contract;
2. Determination of Compensation;
3. Duplication of Benefits Certification;
4. DOB Backup Invoices/Receipts;
5. Property Appraisal Permission and Release;
6. Privacy Act Statement;
7. Voluntary Participation;
8. Appraisal;
9. Final HUD 1 — Buyout Home
10. Original Title Policy;
11. Certificate of Inspection and Possession; and
12. Original Recorded Deed
General communication and any contested appraisal information will also be included in closing
documents.
5.6 Demolition
The City is responsible for demolishing structures after buyout purchases are complete.
Structures must be demolished 45 days after the City obtains title to the property. Exceptions may
only be made to the 45-day rule for health and safety concerns or if necessary permitting and
environmental review processes make it impossible to meet that deadline. The City will also
comply with HUD guidance related to lead and asbestos. The City's demolition contractor must
adhere to all federal, state, and local laws pertaining to the safe demolition and disposal of
materials.
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The cost for demolition will be based upon an unmet needs assessment to include necessary
environmental mitigation costs not to exceed the composite price determined by the subrecipient
or the state. If the total costs for demolition and the environmental mitigation costs exceed the
composite price, the City of Pearland will be required to provide the gap funding. The cost for
demolition may include additional expenses related to municipal requirements and/or health or
safety related conditions specific to building site or location (asbestos or lead removal)
1. Program Requirements
a. Demolition shall be defined as the demolition, removal, and disposal of an existing
structure or structures including the foundation(s).
b. Demolition oversight services include up to 2 inspections per demolition project.
Demolition agreements will be 3 party contracts between The City of Pearland, the
contractor, and the applicant/owner.
c. The demolition process includes the initial inspection, contractor selection, and a
final inspection following demolition.
d. Structure shall be defined as buildings and/or partial buildings.
e. The demolition must comply with all applicable federal and state requirement.
5.6 Files and Records
The City of Pearland will maintain accurate Buyout Program files and records for general
administration activities for each funding source, for each applicant, and for each assisted
homeowner as required by the GLO in the GLO's system of record. Such files will be open for
inspection as to qualifications, bids, and awards. Record keeping procedures must be
developed for monitoring/audit by the GLO. See Section 6.1 for additional information on
reporting and records.
5.7 Project Closeout
Following completion of buyout activities, the City will complete an end -to -end ("ETE")
checklist to ensure the file meets all of the applicable program requirements. This task will be
completed for each applicant file regardless of if the applicant received any funds or completed
a real estate transaction. The City will comply with all GLO file closeout procedures, including
(but not limited to) the "left side/right side" file organization format.
At project closeout, the City of Pearland will now own the purchased properties. The City will
be responsible for Land Use Restriction Agreement monitoring and maintenance of these
properties.
6.0 Additional Program Requirements
6.1 Reporting Requirements
The City will maintain compliance in accordance with reporting requirements under regular
CDBG allocations disbursed directly to the City, as well as those via pass-thru, such as the
GLO's CDBG-DR Program. This compliance includes providing all information and reports
as required under grant and/or subrecipient contracts with HUD and/or the State (GLO),
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demographic data and other information acquired from the applicants and project
documentation from awarded applicants.
1. Section 3 24 CFR
The City will comply with Section 3 of 24 CFR, Part 135, including the executed agreement
between the City and the GLO.
Section 3 of the Housing and Urban Development Act of 1968 [12 U.S.C. 1701u and 24
CFR Part 135] represents HUD's policy for providing preference for new employment,
training, and contracting opportunities created from the usage of covered HUD funds to
low- and very low-income residents of the community where certain funds are spent
(regardless of race or gender), and the businesses that substantially employ these
persons. In order to comply with Section 3, the buyout program will do the following
whenever necessary;
a. Implementing procedures to notify Section 3 residents and business concerns
about training, employment, and contracting opportunities generated by Section 3
covered assistance;
b. Notifying potential contractors working on Section 3 covered projects of their
responsibilities;
c. Incorporating the Section 3 Clause into all covered solicitations and contracts [see
24 CFR Part 135.38];
d. Facilitating the training and employment of Section 3 residents and the award of
contracts to Section 3 business concerns;
e. Assisting and actively cooperating with the Department in making contractors and
subcontractors comply;
f. Refraining from entering into contracts with contractors that are in violation of
Section 3 regulations;
g. Documenting actions taken to comply with Section 3; and
h. Submitting Section 3 Quarterly and Annual Summary Reports (form HUD-60002)
in accordance with 24 CFR Part 135.90.
2. Applicant Data
All applicant data is secured in the City's files for specific period in accordance with the
City's records retention policies, which conform to federal regulations in 2 CFR 200.333
(Record Retention). The reporting requirements will include, but not limited to, the
following for each program activity requiring a direct application by an individual or non -
institutional entity:
• Applicant's household income at the time of assistance;
• Household income as a percentage of AMI at the time of assistance, as defined
by HUD;
• The ethnicity, race and gender of the head of household;
• The familial status of the household;
• The presence or absence of a household member with a disability; and
• The presence or absence of a household member that is a veteran.
In order to protect non-public personal information, data security measures are in place.
For example, hardware and software data security protocols such as the requirement for
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signed non- disclosure agreements prior to receipt of access credentials for the City's
management information system. The City also requires that hard copy files containing
non-public personal information are kept in locked file cabinets to ensure their physical
security.
Public Information Requests (PIR) are handled by Pearland's City Secretary and the
Legal Department, with a process workflow in place that removes any PII from any
documents that are available and appropriate for issuance to a requester, all statutory
and regulatory concerns considered. Applications for assistance do not require program
participants to provide social security numbers or bank account information when
completing those documents and any such information used to validate eligibility is
maintained in electronic or hard -copy filing systems that do not allow public access. The
City has a robust cybersecurity protocol that successfully prevents intrusions.
3. Records Retention
All official records on programs and individual activities shall be maintained for a 3-year
period beyond the closing of a grant between the City and the GLO. Applicant/beneficiary
records must be maintained electronically, with original signature documents
maintained/retained in City files. The City will maintain all records in an approved
electronic record management system utilizing GLO's Activity File Checklist.
6.2 Procurement Requirements
The City will comply with federal (2 CFR 200.318-200.326) and state procurement
requirements, including providing adequate documentation showing the selection process
was carried out in a fair, open, uniform and thorough manner. Records include, but are
not limited to, the following information:
• Evaluation and Selection Criteria;
• Rational for the Method of Procurement;
• Basis for Cost and/or Price; and
• Contractor Selection or Rejection.
6.3 Audit Requirements
The City's expenditure of federal and/or State funds which exceed the thresholds set in 2
CFR 200.501, Audit Requirements, and Chapter 783 of the Texas Government Code
(Uniform Grant Management Standards) shall have a single or program specific audit
conducted in accordance with the applicable federal and/or State requirements.
7.0 URA Displacement of Persons and/or Entities
Pursuant to HUD and other federal guidelines, the City is required to comply with Uniform
Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA). HUD describes
the objective of the URA as follows:
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To provide uniform, fair and equitable treatment of persons whose real property is acquired or
who are displaced in connection with federally funded projects; (2) to ensure relocation assistance
is provided to displaced persons to lessen the emotional and financial impact of displacement; (3)
to ensure that no individual or family is displaced unless decent, safe and sanitary housing is
available within the displaced person's financial means; (4) to help improve the housing conditions
of displaced persons living in substandard housing; and (5) to encourage and expedite acquisition
by agreement and without coercion.
People who are displaced, regardless of income, can receive benefits under the Uniform
Relocation Assistance and real Property Acquisition Policies Act of 1970 ("URA" or "Uniform
Relocation Act"). URA applies to both permanent displacement (one year or greater) and
temporary (during construction).
Section 104(d) requires relocation assistance for lower -income individuals displaced as a result
of the demolition or conversion of a lower -income dwelling and requires one -for -one replacement
of lower- income units demolished or converted to other uses.
Subrecipients must provide the following benefits to households that they displace:
• Relocation advisory services;
• A minimum of a 90-day notice to vacate;
• Reimbursement for moving expenses; and
• Payments for added cost of renting or purchasing comparable replacement housing.
The relocation assistance requirements at Section 104(d)(2)(A) of the Housing and Community
Development Act and 24 CFR 42.350 are waived to the extent that they differ from the
requirements of the URA and implementing regulations at 49 CFR Part 24, as modified by the
notice for activities related to disaster recovery. Without this waiver, disparities exist in relocation
assistance associated with activities typically funded by HUD and FEMA (e.g., buyouts and
relocation). Both FEMA and CDBG funds are subject to the requirements of the URA; however,
CDBG funds are subject to Section 104(d), while FEMA funds are not. The URA provides that a
displaced person is eligible to receive a rental assistance payment that covers a period of 42
months. By contrast, Section 104(d) allows a lower -income displaced person to choose between
the URA rental assistance payment and a rental assistance payment calculated over a period
of 60 months. This waiver of the Section 104(d) requirements assures uniform and equitable
treatment by setting the URA and its implementing regulations as the sole standard for relocation
assistance under the federal register notice.
The City will follow GLO's Residential Anti -displacement and Relocation Assistance Plan
(RARAP). Subrecipients and the state must minimize the direct and indirect displacement of
persons from their homes by: (1) planning construction activities to allow tenants to remain in
their units as long as possible, (2) by rehabilitating empty units or buildings first, (3) where
feasible, give priority to rehabilitation of housing, as opposed to demolition, to avoid
displacement, (4) adopt policies to identify and mitigate displacement resulting from intensive
public investment in neighborhoods, (5) adopt tax assessment policies, such as deferred tax
payment plans, to reduce impact of increasing property tax assessments on lower income owner -
occupants or tenants in revitalizing areas; and/or (6) target only those properties deemed
essential to the need or success of the project.
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As rental properties are not eligible for this program, the City does not anticipate any displacement
of persons with this project. Homeowners that accept the buyout offered are not typically
considered displaced. Each applicant will be reviewed on a case by case basis for URA
applicability.
8.0 Conflict of Interest
The conflict of interest regulations contained in the contract between The City of Pearland and
the GLO prohibit local elected officials, subrecipient employees, contractors, and consultants
who exercise functions with respect to CDBG-DR activities or who are in a position to participate
in a decision -making process or gain inside information with regard to such activities, from
receiving any benefit from the activity either for themselves or for those with whom they have
family or business ties, during their tenure or for one year thereafter.
For purposes of this section, "family" is defined to include parents (including mother-in-law and
father-in-law), grandparents, siblings (including sister-in-law and brother-in-law), and children of
an official covered under the CDBG-DR conflict of interest regulations at 24 CFR Sec.
570.489(h).
The GLO can consider granting an exception to the conflict of interest provision should it be
determined by the GLO that the subrecipient has adequately and publicly addressed all of the
concerns generated by the conflict of interest and that an exception would serve to further the
purposes of Title I of the Housing and Community Development Act of 1974 and the effective
and efficient administration of the program. The City will not enter a conflict of interest until
justification has been received and approved by the GLO in accordance with applicable
procurement laws.
9.0 Complaint/Appeal Process
9.1 General Policy
The City of Pearland is responsible for responding to complaints and appeals in a timely
manner. The City will keep a record of each complaint or appeal that it receives to include
all communications and their resolutions.
When the City receives a complaint or appeal, a representative will respond to the
complainant or appellant within three (3) business days where feasible. The City and the
state communicate via telephone for expediency purposes; however, email and
postmarked letters will be used as necessary.
To file a complaint or appeal please contact City Attorney Darrin Coker, in writing, City of
Pearland, Legal Department — City Attorney, 3519 Liberty Drive, Pearland TX 77581, or
via email at dcoker@pearlandtx.gov.
9.2 Responsibilities
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The City is responsible for (1) determining if complaints and appeals relate to the business
or authority of the City, (2) ensuring that a response to all complaints and appeals are
within the appropriate time frame (a final response will be provided within ten (10) business
days of receipt, although an extension may be granted, if additional documents or review
is required), and (3) working to ensure all complaints and appeals are resolved where
possible.
An internal procedure for handling incoming complaints, including a complaint escalation
process to ensure that complaints are handled at the earliest stage in the process.
9.3 Documentation
Documentation for each complaint or appeal must be maintained. Each file must include
the following:
• Contact information for the complainant;
• Initial complaint;
• Address and GLO assigned project number (if applicable);
• Any communications to and from complainant or appellant;
• Results of the investigation, together with any notes, letters, or other
investigative documentation;
• The date the complaint or appeal was closed; and
• Any other action taken.
10.0 Changes, Waivers and/or Conflicts
The City has the right to modify, change, revoke or waive any portion of these guidelines, with
prior approval of the GLO. The GLO can only approve waivers to the requirements in these
Guidelines. The option for a waiver will be provided by the GLO only after the waiver has been
posted to the City's website for a public comment period of at least seven (7) days. The waiver
request must demonstrate why the housing guidelines are not realistic for a subrecipient(s).
Should the guidelines conflict with local, state, or federal law, the more stringent requirement will
prevail, provided there is no violation to the local, state or federal law.
11.0 Case Management
The City of Pearland recognizes that applicants are likely to need support throughout the process.
Applicants may have suffered significant losses and emotional hardships. Undertaking the
process to claim insurance is often burdensome and confusing. The simple mechanics of
applying to the CDBG-DR Program may be complicated by the loss of documents or temporary
residence outside the area. The City will work to cultivate partnerships with local and community
liaisons such as banks, counseling agencies, legal services, title companies, etc to help ease
the process for applicants.
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The City (which may hire vendors) will work to assist survivors from inception to close-out of
their recovery needs associated with the Program for which they participate.
As survivor applications are being accepted and reviewed for determinations of eligibility to
participate in the Program, each survivor will be counseled and made aware of their application
status.
The City of Pearland has a dedicated case manager team to provide consistent services to
program applicants. Impacted residents can Joel Hardy, Grants Administrator, City of Pearland,
3519 Liberty Drive, Pearland TX 77581, via email at jhardy@pearlandtx.gov, or by telephone at
(281) 652-1795. This office is available directly from 8am — 5pm, Monday through Friday, but
individuals may reach out to staff via email or in writing at all times.
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