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.
