Redevelopment Authority

of the City of Butler

Owner Occupied 
Housing Rehabilitation

 

Income Limits

(As of 06/1/2018)

 

1 Person                 $31,920

2 Persons                $36,480

3 Persons                $41,040

4 Persons                $45,600

5 Persons                $49,260

6 Persons                $52,920

7 Persons                $56,580

8 Persons                $60,240

INVITATION FOR HOUSING REHABILITATION PROPOSALS

 

The Redevelopment Authority of the City of Butler (RACB) is accepting applications from interested general contractors for the rehabilitation of residential structures within the Butler city limits. To obtain a copy of the application, contact RACB at 724-283-0116, racb@zoominternet.net or stop into the the office, which is located at 129 West Cunningham Street, Butler. 

RACB ensures that applicants are not discriminated because of race, color, sex, national origin, religion, familiar status (families with children), or handicap (disability) and adds the additional protected classes of age, ancestry and use of guide or support animals because of blindness, deafness or physical handicap of the user or because the user is a handler or trainer of support or guide animals.

            Contractors are encouraged to utilize to the greatest extent feasible, opportunities and/or women-owned businesses and/or minority-owned businesses, which are located with the municipality, county or general trade area.




CONTRACTOR PRE-QUALIFICATION PROCEDURE

 

    At the time of application the contractor must submit the following:

1. A letter on company letterhead requesting placement on the bidders list including company name, owner’s name(s), address and phone #.

2. Certificates of Insurance including:

                   A. Workman’s Compensation OR

                         Sole Proprietor Statement if Self Employed

            B. Commercial General Liability Insurance –                

 Minimum of $100,000 Property Damage &

 Minimum of $300,000 Bodily Injury (each occurrence) (* minimum may vary depending upon project scale and scope).  

3. Certificate of Completion for HUD Lead Based Paint Safe  Work Practices

4. EPA Certification for Lead Safety for Renovation, Repair & Painting -  www.epa.gov (dependent on home testing positive                  for LBP & funding source)

                  A. Company must be certified by the EPA.

                  B. Company must have at least one EPA certified renovator employed.

         5. Completion of "Statement of Bidder's Qualifications", which includes three references of recent jobs – listing name, address, and phone #. This document can be found within the General Contractor Selection & Eligibility  package.

6. W-9 Form Request for Taxpayer Identification Number & Certification

7. PA Home Improvement Contractor’s Certificate –www.attorneygeneral.gov.

 

     Upon receipt of the above items, the Authority Staff will contact the listed references. If all items and references are in good order, then the contractor will be put on the bidders list on a Probationary Status. No contractor will be included on the bidders list until all items are received. Application for inclusion is not a guarantee of acceptance. Contractors may be barred from the list for any of the following reasons:

 

* Failure to produce required documents       * Bad references

* Being on HUD’s Debarred List

* Inability to successfully complete an awarded contract

 

     After inclusion on the bidders list on a probationary basis, a contractor will be eligible to be awarded one rehabilitation contract.

 

     A contractor will remain on Probationary Status until successfully completing one contract, after that time, the contractor will become Qualified for all housing rehabilitation projects being administered by the Authority and will complete his probationary period.

 

     If for any reason a contractor who is already qualified is unable to successfully complete a contract award, this contractor may be placed back on probationary status. This entitles them to receive only one bid award until successfully completing this contract, upon which time their status will be re-evaluated and probation may be lifted. If a qualified contractor fails to bid on a contract for a period of one year, he will be removed from the bidders list and will have to reapply.

 

     The program is open to all income elighible, single-family, owner-occupied units within the City of Butler.   Eligibility for the rehabilitation program depends upon the owner-occupants TOTAL HOUSEHOLD INCOME being lower than the Income Limits.

 

     A homeowner is defined as both owning and occupying a home located in the City of Butler.  

 

       The grant amount is not claimed on your income tax and does not have to be paid back unless your home is sold within the five-year completion period.

 

HOW THE PROGRAM WORKS

 

AFTER IT HAS BEEN DETERMINED THAT YOU ARE ELIGIBLE TO PARTICIPATE IN THE HOMEOWNER REHABILITATION PROGRAM, THE FOLLOWING WILL TAKE PLACE:

 

     The Inspector will visit you home. An inspection survey will be conducted so that a work write- up can be completed. The work to be done first is to bring your home into compliance with the City of Butler’s building Codes, any additional rehabilitation work will then be considered.  Examples are roof, electrical wiring, furnace, windows, sidewalk, doors, insulation, etc.

 

     A specific work write-up will be prepared and reviewed with the homeowner for approval. A date will then be selected to invite the contractors on the Redevelopment Authority’s approved list to your home. They will be given the work write-up and be asked to look at each item so that they can prepare a bid for the work to be done. 

 

     The Redevelopment Authority is not employing the contractor or recommending any contractor. However, a list of contractors who have done satisfactory work for the Redevelopment Authority in the past is maintained. The work being done by any specific contractor is not being guaranteed by the Redevelopment Authority but the Contractor will guarantee his workmanship for one year. The Redevelopment Authority’s role is to help in determining the work write-up, setting up the bidding process and obtaining the funds needed for you to keep your home in a safe and sound condition.

 

     A minimum of 2 (two) bids are required for each rehabilitation job. The lowest responsible bidder from the list of contractors will be accepted. If the homeowner is desirous of accepting the bid of a contractor which is not the lowest responsible bid, the homeowner will then be responsible to pay the full difference in the price of the higher bid. The contractors will be given a specific date and time that their bids must be received in the Redevelopment Authority office for bid opening at which time all bids received will be opened and recorded as public record.

 

     After the Inspector has reviewed the bids to make sure they are acceptable, the homeowner will be notified of the results. If a proper bid is received, the homeowner must then decide whether to accept it. If the bid is over the amount of your initial grant of $16,000, the homeowner will pay the remaining cost.

 

     Upon receiving the homeowner’s approval, the Inspector will prepare a contract to be signed between the homeowner and the contractor who submitted the lowest bid. The contractor will give the homeowner an approximate time for the work to begin. The contractor is responsible for obtaining the proper building permits required by the City of Butler. You will receive copies of the contract for your records.

 

     A Rehabilitation Incentive Payment Agreement will also be signed at this time along with a Promissory Note and Mortgage. This agreement is between the Redevelopment Authority and the homeowner, and it is your guarantee that the amount of money listed on the Contract as Redevelopment Authority’s share will be paid to you and the Contractor for the work performed.

 

     As the work on your home progresses, the Inspector will make inspections when payment requests are made. The checks will be made co-payable to both the homeowner and the Contractor.

 

     Please keep in mind that the Contract covers the typical needs of the normal scope of the work to be done on your home. This work is intended to improve the condition of your home, to maintain it and to preserve its value. Sometimes it is impossible for the Inspector and/or the contractor to predict unforeseen and underlying problems with the structure itself. Such conditions may include rotten wood, termite damage, water damage, etc. If these unforeseen conditions exist in your home, the scope of work may have to be amended. In this case estimates to correct the problem will be prepared by the contractor and a Change Order will be prepared by the Inspector. In the event this happens, the increase in the scope of the work will cause increased costs. You may be required to invest money in your home to cover any increased costs involved due to the Change Order.

 

     Upon completion of the work, a final inspection will be conducted by the Inspector. If everything is found to be acceptable, the final payment will be authorized and the completion forms will be prepared and signed by the Owner and the Inspector. Pictures of the home will be taken prior to, during, and at the completion of the work.