Download COMDEV-89-447 NSP1/NSP2 Property Rehabilitation Process

CITY OF GRAND RAPIDS
NEIGHBORHOOD STABILIZATION PROGRAM
PROPERTY REHABILITATION PROCESS
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What
Developer arranges for:
 Lead-based paint (LBP) risk assessment by State
certified Risk Assessor
 Asbestos containing materials (ACM) assessment
by a properly licensed asbestos inspector.
 Blower door testing by CDD HRO
 Developer electronically submits project
specifications, LBP assessment results and ACM
assessment results to Doug Stek ([email protected]),
Housing Rehabilitation Supervisor, and Ken Holton
([email protected]), Housing Rehabilitation
Specialist II. Information will be forwarded to the
assigned Housing Rehabilitation Specialist.
CDD HRO reviews and approves project specifications
and notifies Developer and CDD Project Manager that
project may be bid.
Developer:
 Solicits sealed bids from general contractors or
subcontractors as applicable.
 Holds bid opening and submits bid tabulation to
the CDD HRO.
 Selects general contractor or subcontractors as
applicable and submits bid of selected general
contractor or statement of total construction cost
to CDD HRO.
CDD HRO:
 Reviews bid tabulation.
 Reviews selected bid or the statement of total
construction cost against in-house estimate.
 Notifies Developer and CDD Project Manager that
bid or statement of total construction cost has
been approved or if there needs to be a
reconciliation of costs.
Developer submits the following information to CDD
Project Manager for review and approval:
 Final Pre-Rehabilitation Project Budget
 If applicable, evidence of General Contractor
Insurance/bonding that complies with Attachment
B-1 of the development agreement.
 Development Schedule
 Building Permit, if required
 A copy of the Notice of Commencement recorded
with the Kent County Register of Deeds
 Section 3 Documentation
COMDEV-89-447 (rev. 2/18/2011, CLB)
Comments
Developer should plan on 3 weeks lead time for this
step.
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The specifications must be prepared in a manner
consistent with the CDD “Work Specification
Expectations” document.
Bid specifications to be approved by CDD HRO
within (30) days after acquisition, or start of the
Period of Performance of the Development
Agreement, whichever is later.
CDD HRO updates in-house cost estimate based on
approved specifications.
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Bidding process must be conducted in a manner
consistent with the CDD “Bidding and Contractor
Selection Practices” document
Outreach methods for bidding must be consistent
with submitted Section 3 Plan.
Contractor(s) to be selected within (45) days after
acquisition, or start of the Period of Performance
of the Development Agreement, whichever is later.
If the bid of the selected general contractor or the
statement of total construction cost is:
 Within 10% of CDD HRO in-house estimate, the
Developer will be notified that they may proceed
with preparing construction contract(s).
 Not within 10% of the CDD HRO in-house estimate,
the Developer and the CDD HRO will meet to
reconcile differences. CDD HRO may require
renegotiation or modification of bid prices.
General Contractor Insurance/Bonding
 General Liability
 Motor Vehicle
 Workers’ Compensation
 Payment and Performance Bonds or Irrevocable
Letter of Credit, if applicable.
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If not previously provided, a copy of the (A)
Owner’s Title Policy, and (B) required Loan Title
Policy
Developer:
 Executes written construction contract(s) with
General Contractor or sub-contractors.
 Submits copy of: (A) contract with General
Contractor or, (B) Subcontract Certification Form.
CDD Project Manager provides Developer with written
Approval to Commence Work.
Please refer to “City CDD Title Insurance
Requirements” for specific information.
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May occur concurrently with Step 5.
Construction contracts must include the CDD
“General Terms and Conditions for Construction
Contracts” document.
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Construction to start within (60) days after
acquisition, or start of the Period of Performance
of the Development Agreement, whichever is later.
Rehabilitation must be completed within 4 months
after written approval to commence work.
Payment requests made on City provided forms in
accordance with written instructions provided by
the CDD.
Turnaround time for payment will be
approximately two weeks from receipt of complete
and accurate payment request.
Payment requests for development costs to be
submitted monthly under most circumstances.
NOTE: The Mortgage and Promissory Note must
be executed and the owner’s and loan title policies
in place before payment requests for nonacquisition related costs will be processed by the
CDD.
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As project progresses, the Developer will submit
requests for payment of development costs and
developer fees.
 Original request for payment of development costs
and required attachments submitted to CDD
Project Manager and electronic copies sent to
assigned HRO Specialist.
 CDD HRO staff inspects work site and reviews
general contractor payment invoice and sworn
statement. CDD HRO provides report to CDD
Project Manager.
 If construction work and related paperwork are
acceptable to CDD HRO staff, and other costs
included in the payment request are approved by
the CDD Project Manager, the payment request
will be processed.
Developer:
 Requests final inspection from CDD HRO and
Building Inspection, if applicable.
 Requests final energy audit from CDD HRO
 Submits lead based paint clearance report and
asbestos treatment/abatement documentation to
CDD HRO.
CDD HRO will:
 Inspect completed project for compliance with
applicable property standards (see comments)
 Review/approve lead based paint clearance report
 Review/approve asbestos treatment/abatement
documentation
 Verify all required building and/or trade permits
have been finalized and a Use and Occupancy
Permit has been issued if required by the Building
Code.
 Notify CDD Project Manager and Developer that
property meets all applicable property standards.
Developer submits Subcontractor Activity Report to the
CDD Project Manager.
COMDEV-89-447 (rev. 2/18/2011, CLB)
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Request for final energy audit should be submitted to
CDD HRO as early as possible.
Applicable Property Standards
 Consistency with approved specifications
 Housing Code compliance
 City Rehabilitation Standards
 Historic Preservation
 Lead-based paint requirements
 Asbestos requirements
 City Water Conservation and Energy Efficiency
Standards
 Final Home Energy Audit
Reporting form and instructions will be provided by the
CDD.
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