TOWNOF  BEDFORD LIFE. LIBERTY. HAPPINESS. Regular Council Meeting AGENDA  May 28, 2024 Administrative  7:00 p.m.  Approval of Minutes Report ofTown Manager Appearances before Council Council Comments Report of Council Committees Revisions to Agenda  Public Hearings I-FIN-2-43-5-28  Proposed Tax Rates  Consent Agenda (roll call) Old Business New Business 2-CC-15-1-5-28 3-FIN-2-43-5-28 4-FIN-2-43-5-28 5-FIN-2-43-5-28 6-P/CD-13-3-5-28 7-CC-15-1-5-28  Presentation Winoa Project EDA Chairman Calendar Year 2025 (roll call)  Ordinance Business, Professional and Occupational Liçensing Tax for Ordinance - Personal Property Tax for Calendar Year 2024 (roll call) Adoption of Budget for Fiscal Year 2024-2025 (roll call)  Resolution CDBG "Hilitop Community Revitalization Project-Phase 2" Housing  Grant Documents (roll call) Discussion of Digital Signs  Citizens may watch the meeting in real time via the Town of Bedford Live Stream website: htps/wwwyoutbecomm/Qtownelbedfond  The Town will: strive to provide reasonable accommodations ands services for persons who require special assistance 10 participate in this public involvement opportunity. Contact (540) 587-6001 for more information.    TOWN OF BEDFORD NOTICE OF PUBLICHEARING  SETTING TAX RATES ON PERSONAL PROPERTY FOR TAX YEAR 2024 AND SETTING TAX RATES ON THE BUSINESS PROFESSIONAL AND Please be advised that a public hearing on the tax rates will be held on Tuesday, May 28, 2024, at 7:00 p.m. in the Council Chambers of the Town of Bedford Municipal Building, located at 215 E. Main Street, Bedford, Virginia, to-wit: to set aj personal property tax rate of not more than $1.06 per $100 assessed valuation in the Town of Bedford for tax year 2024. To set ai machinery and tools tax rate of not more than $0.000001 per $100 assessed valuation in the Town of Bedford for calendar year 2024. To set a BPOL tax on all categories of not more than $0.10 per $100 gross receipts for businesses in excess of $2,000,000 and not more than $0.15 per $100 gross receipts for businesses in excess of  OCCUPATIONALLICENSE (BPOL)TAX FOR TAX YEAR 2025.  $10,000,000 for tax year 2025.    TOWN OF BEDFORD, VIRGINIA TOWN COUNCIL ACTION FORM  ITEM: Ordinance Business, Professional and Occupational Licensing Tax for Calendar Year 2025  DATE OF COUNCIL MEETING: May 28, 2024  DATE: May21.2024  PRESENTATION:  The current Business, Professional and Occupational Licensing (BPOL) Tax was reviewed during the Fiscal Year (FY) 2025 Budget process. The rate for calendar year 2024 was $0.10 per $100 gross receipts for retail businesses in excess of $3,000,000, and a $30 application fee for all other categories. The rate for calendar year 2024 is proposed on a progressive scale as follows:  Contractors <$250,000 Contractors >$250,000 Retailers <$2,000,000 Retailers 52,00,000.510,00,000 Retailers >$10,000,000 Professional <$2,000,000 Professional 52,00,00.510,00,000 Professional >$10,000,000 Business Service <$2,000,000 Business Service>510,000,000 Wholesalers <$2,000,000 Wholesalers 2,00,000.510,0,0 Wholesalers >$10,000,000 Direct Sellers <$8,000 Direct Sellers >$8,000 Various flat feesi include:  $30 $30 $30 $30 $30 $30  +$0.10 per $100 gross receipts +$0.10 per $100 gross receipts + $0.15 per $100 gross receipts + $0.10 per $100 gross receipts +: $0.15 per $100 gross receipts + $0.15 per $100 gross receipts + $0.10 per $100 gross receipts +$0.15 per $100 gross receipts +$0.15 per $100 gross receipts  Business Service 52,00,00.510,00,000 +$0.10 per $100 gross receipts  Retail Peddlers-Perishable, Wholesale Peddler, Coin-Operated Machinery, Mobile Food Units: $50  Retail Peadler-Non-Perishable, on foot: $275 Camivals, circuses, and speedways: $200/day  Retail Pedler-Non-Perishabie, not on foot, and Precious Metal Dealers: $500 Fortuneteller, Clairvoyant or Practitioner of Palmistry, Massage Parlors: $1,000  A notice of public hearing was published in the Bedford Bulletin on April 3, 2024 and in the News and Advance on May 20, 2024.  ACTION REQUESTED:  Town Council is requested to consider adoption of the ordinance presented.  YES NO OTHER  ROUTING  DATE: DENIED DEFERREDTO:  BLACK CARSON () HAILEY JOHANNESSEN STANLEY UPDIKE  () () () TOWNATTY. () IT. () () () COMM.DEV. () POLICE () () () ELECTRIC () PUBLIC SERV. () () () () ENGINEERING ( ) OTHER () () () FINANCE () () () FIRE DEPT. () () () () H.R.  () ()  APPROVED () FOREMAN  () ()    ORDANANCENO. TOWN OF BEDFORD  BUSINESS, PROFESSIONAL & OCCUPATIONAL LICENSING  BE IT ORDAINED by the Town Council of the Town of Bedford, Virginia, that Section 54-413, "Tax Rates," of Article XI, "Business, Professional, and Occupational License Tax" of  Chapter 54, "Taxation" ofthel Bedford Town Code be amended as follows: Article XI. - Business, Professional and Occupational License Tax  Chapter 54 - Taxation Sec. 54-413. - Tax Rates  Except as may be specifically otherwise provided by ordinance or other law, the annual license tax imposed hereunder shall be $10.00, or the rate set forth below for the class of enterprise listed, (1) For contracting and persons constructing for their own account for sale $30.00, not pro- rated, for gross receipts up to $250,000; and $0.10] per $100 on gross receipts ofcontractors (2) For retailers $30.00, not pro-rated, for gross receipts up to $2,000,000; $0.10 per $100 on gross receipts ofretailers in excess of $2,000,000b but not more than $10,000,000; and$0.15 (3) For financial, real estate (except real estate salesmen) and professional services $30.00, not pro-rated for gross receipts up to $2,000,000; $0.10 per $100 on gross receipts of financial, real estate, and professional services businesses in excess of$2,000,000 but not more than $10,000,000; and $0.15 per $100 on gross receipts oft financial, real estate, and professional  whichever is greater:  in excess of $250,000.  per $100 on gross receipts of retailers in excess of$10,000,000.  services businesses in excess of$10,000,000.  (4) For repair, personal and business services and all other businesses and occupations not specifically listed or excepted in this article $30.00, not pro-rated, for gross receipts up to $2,000,000; $0.10 per $100 on gross receipts of repair, personal and business services businesses in excess of$2,000,000 but not more than $10,000,000; and $0.15 per $100 on gross receipts of repair, personal, and business services businesses in excess of (5) For every retail peddler of wood, charcoal, meats, milks, butter, eggs, poultry, game, vegetables, fruits or other family supplies ofap perishable nature or farm products not grown or produced by them, $50.00, not prorated, when he travels on foot; when he peddles otherwise than on foot, the tax shall be $50.00 per annum, not prorated, for each vehicle: SO  $10,000,000.  used.    (6) For all other retail peddlers carrying and delivering their wares on foot in the town, $275.00, not prorated; every other retail peddler carrying and delivering his wares  otherwise than on foot in the town, $500.00 per annum, not prorated.  (7) Fore every wholesale peddler, $50.00, not prorated.  (8) For carnivals, circuses and speedways $200.00 per day, subject to limitations in Code of  Virginia, $ 58.1-3728.  The term of the license to operate a carnival shall be one day.  The operator of a carnival shall need no additional license for the privilege ofselling soft drinks, confections, food, souvenirs and novelties on the grounds on which the show is  exhibited.  (9) For every operator (as defined in Code of Virginia, $58.1-3720(11)) of any coin-operated machine doing businessi in this town al liçense tax of$50.00. This liçense shall bei in addition The license tax provided for in this section shall not be applicable to operators of weighing machines, automatic baggage or parcel checking machines or receptacles, vending machines which vend goods, wares and merchandise or postage stamps or provide service only, viewing machines or photo-mat machines, or of machines affording rides to children (10) For every person doing business in this town as a fortuneteller, clairvoyant, or practitioner (11) For every real estate salesman, as defined in Code of Virginia, $54-731, an annual license  to the BPOL tax of gross receipts provided for hereinabove.  and vending newspapers.  of palmistry, $1,000.00. This license shall not be transferable.  tax of$30.00.  (12) For massage parlors, $1,000.00 per year. (13) For dealers in precious metals, $500.00 per year.  (14) For wholesalers an annual tax of$30.00 for gross receipts up to $2,000,000; $0.10per$100 on gross receipts of a wholesale business in excess of $2,000,000 but not more than $10,000,000; and $0.15 per $100 on gross receipts of a wholesale business in excess of (15) For direct sellers as defined in Code of Virginia, $58.1-3719.1, an annual tax of $30.00 for gross receipts up to $8,000; and $0.15 per $100 on gross receipts of direct sale  $10,000,000.  businesses in excess of $8,000. (16) For mobile food units, $50.    TOWN OF BEDFORD, VIRGINIA TOWN COUNCIL ACTION FORM  ITEM: Ordinance Personal Property Tax for Calendar Year 2024 DATE OF COUNCIL MEETING: May 28.2024  DATE: May21,2024  PRESENTATION:  The current personal property tax ratei is$1.06 per $100 ofassessed valuation on: all taxable tangible personal property, including property separately classified in Section 58.1-3503 of the Code of Virginia, 1950, as amended, unless exempted from taxation or subject to a Thei following items are taxes ata at rate of$0.000001 per $100 ofa assessed valuation: Household goods and personal effects as classified in Section 58.1-3504 and horses, mules and other kindred animals, hogs, poultry, grains and other feeds used for the nurture of farm animals, grain and tobacco; cattle, sheep and goats, farm machinery and farm implements as such items are classified in Section 58.1-3505 are exempted in whole from tangible personal property taxation. No changes are being proposed for calendar year 2024. The following items aret taxes ata ai rate of$0.000001 per $100 ofassessed valuation: (a) machinery and tools separately classifiedi in Section 58.1-3507; and (b) motor carriers as separately classifiedi in Section 58.1-3506; (c) one vehicle owned by disabled veterans, ofthe Code of Virginia, 1950, as amended, as separately classified in Section 58.1-3506(a)19);: and (d). motor vehicles witha as seating capacity ofnot less than 30 persons, including the driver, as separately classified in Section 58.1-3506 (a)( (39). No changes are being proposed for calendar A notice of public hearing was published in the Bedford Bulletin on April 3, 2024 and in the News and Advance on May 20, 2024.  different rate. No change is being proposed for calendar year 2024.  year 2024.  ACTION REQUESTED:  Town Council is requested to consider adoption oft the ordinance presented.  YES NO OTHER  ROUTING  DATE: DENIED DEFERREDTO:  BLACK CARSON () HAILEY JOHANNESSEN STANLEY UPDIKE  () () () TOWNATTY. () LT. () () () COMM.DEV. () POLICE () () () ELECTRIC () PUBLIC SERV. () () () () ENGINEERING () OTHER () () () FINANCE () () () FIRE DEPT. C) () () () H.R.  APPROVED () FOREMAN  () ()    ORDINANCE NO.  AN ORDINANCELEVYINGTAX UPONTANGIBLE PERSONAL PROPERTY AND  ESTABLISHING THE' TAX RATES THEREON FORTHE CALENDAR YEAR BEGINNING JANUARY 1,2024  BEI IT ORDAINED by the Town Council oft the Town of Bedford, Virginia, that there be, and is hereby levied, for the calendar year 2024, a tax rate of$1.06 per one hundred dollars ofone hundred per centum (100%) of assessed value on all taxable tangible personal property, including property separately classified in Section 58.1-3503 of the Code of Virginia, 1950, as amended, unless exempted from taxation or subject to a different rate under this ordinançe. All tangible personal property employed in a trade or business other than that described in subdivision 1 through 18 of Section 58.1-3503 is taxed at a levy of $0.000001 per one hundred dollars of one hundred per centum (100%) of the assessed valuation. Household goods and personal effects as classified in Section 58.1-3504 and horses, mules and other kindred animals, hogs, poultry, grains and other feeds used for the nurture of farm animals, grain and tobacco; cattle, sheep and goats, farm machinery and farm implements as such items are classified in Section 58.1-3505 are exempted in whole from tangible personal property taxation. The following items are taxed at a rate of $0.000001 per one hundred dollars of one hundred per centum (100%) of the assessed valuation: (a) machinery and tools separately classified in Section 58.1-3507; and (b) motor carriers as separately classified in Section 58.1-3506; (c) one vehicle owned by disabled veterans, of the Code of Virginia, 1950, as amended, as separately classified in Section 58.1-3506(a)(19); and (d) motor vehiçles with a seating capacity of not less than 30 persons, including the driver, as  separately classified in Section 58.1-3506 (a) (39).    TOWN OF BEDFORD, VIRGINIA TOWN COUNCIL ACTION FORM  ITEM: Adoption of Budget for Fiscal Year 2024-2025 DATE OF COUNCIL MEETING: May 28.2024  DATE: May 20,2024  PRESENTATION:  Thel Fiscal Year (FY)2024-2025 Proposed Budget was presented to Town Council on March 26, 2024. The' Town Council held budget work sessions on April 20, 2024, April 23, 2024, and May 7,2024. After input from the work sessions, the FY 2024-2025 Budget has been revised to reflect the recommendations ofTown Council. A notice of Public Hearing was advertised in the Bedford Bulletin on May 1,2024, and the Public Hearing was held on May 14,2024. The FY 2024-2025 Budget summary is included below:  General Fund Solid Waste Fund Electric Fund Public Safety Training Center Restricted Fund General Fund Capital Projects Electric Fund Capital Projects Revolving Loan Fund Total Alll Funds  $11,153,371 966,107 24,003,962 24,914 12,000 205,819 1,047,008 2,314 $37,415,495  Section 58.1-3005 oft the Code of Virginia of 1950, as amended, requires that Council shall, on a regular basis, make an appropriation of funds for expenditure by the Town. The attached ordinance directs that the funds as set out int the budget for Fiscal Year 2024-2025 be appropriated and set aside to the appropriate funds, and authorizes the Town Manager to expend the funds in accordance with said budget and in accordance with prior appropriations. The ordinance denoting the original appropriations has been posted in accordance  with $2-54 of the Town Code. ACTION REQUESTED:  Town Council is requested to adopt the budget for Fiscal Year 2024-2025 and approving the ordinance appropriating funds.  YES NO OTHER  ROUTING  DATE: DENIED DEFERREDTO:  BLACK CARSON () HAILEY JOHANNESSEN STANLEY  () () () TOWNATTY. () LT. () () () COMM. DEV. () POLICE () () () ELECTRIC () PUBLIC SERV. () () () ) ENGINEERING () OTHER () () ( ) FIRE DEPT. ()  ) ()  APPROVED () FOREMAN  () ()  FINANCE  ()    ORDINANCE NO.  AN ORDINANCE DIRECTINGTHE APPROPRIATION OF FUNDS FORTHE FISCAL YEAR BEGINNING JULY 1,2024  BE IT ORDAINED that the Town Council of the Town of Bedford, Virginia, hereby directs that the funds as set out in the budget for Fiscal Year 2024-2025 for the Town of Bedford are appropriated and set aside to the funds as shown below, and that the Town Manager is authorized to expend the funds in accordance with said adopted budget  and in accordance with prior appropriations.  Fiscal Year 2024-2025 Budget Appropriation Detail:  Revenues General Fund Solid Waste Fund Electric Fund Public Safety Training Center Restricted Fund General Fund Capital Projects Electric Fund Capital Projects Revolving Loan Fund Total Revenues Expenditures General Fund Legislative General & Financial Administration Public Safety Public Works Community Development Other Non-departmental Debt Service Transfers to Other Funds Total General Fund Solid Waste Fund General Administration Refuse Collection Refuse Disposal Debt Service Transfer to Other Funds  Total $11,153,371 966,107 24,003,962 24,914 12,000 205,819 1,047,008 2,314 $37,415,495  $77,489 1,167,022 3,858,170 4,269,342 504,882 10,250 867,940 398,276 $11,153,371 $70,154 262,705 538,491 94,757 $966,107  Total Solid Waste Fund    Electric Fund Supervision & Engineering Power Generation Purchased Power Transmission - Substation Transmission -] Distribution Lines Maintenance Street Lines Maintenance Meters Distribution Transformers Meter Reading Right of Way Crew Debt Service Contingency Transfers  $2,117,514 399,410 15,795,712 81,000 1,820,615 14,500 20,000 49,000 82,715 556,101 1,196,065 40,342 1,830,988 $24,003,962 $24,914 $24,914 $12,000 $12,000 $205,819 $205,819 $1,047,008 $1,047,008 $2,314 $2,314 $37,415,495  Total Electric Fund Public Safety Training Center Personnel and Operations Restricted Fund  Total Public Safety Training Center  Police Department Expenditures Total Restricted Fund General Fund Capital Projects Capital Outlay  Total General Fund Capital Projects  Electric Fund Capital Projects Capital Outlay Revolving Loan Fund Contingency  Total Electric Fund Capital Projects  Total Revolving Loan Fund Total Expenditures, All Funds    TOWN OF BEDFORD, VIRGINIA TOWN COUNCIL ACTION FORM  ITEM: Resolution CDBG "Hilltop Community Revitalization Project-Phase 2" Housing Grant Documents  DATE OF COUNCIL MEETING: May 28,2024  DATE: May21.2024  PRESENTATION:  The Town began work on the "Hilltop Community Revitalization Project" as a follow-up implementation strategy to the "School-to- School / Bridge Street Revitalization" project. DHCD awarded the Town a CDBG grant of$921,983.00 to rehabilitate and rebuild 13 As this two-year project was nearing a successful close, plans began to apply for additional Community Development Block Grant (CDBG) funding to continue the revitalization efforts in the Phase 2 area of the Hilltop Community. Preparation went into submitting an application to DHCD (Department of Housing and Community Development) by the June 1s, 2023, deadline for the "Hilltop Community Revitalization Project Phase 2" and after holding the second of two public hearings at its meeting on May 9, 2023, Town DHCD awarded the Town the requested fundso of51,071,64.0tor rehabilitate or rebuild 11 specific houses in the Phase 2 area described in the application over two years. This award of funds is pending several documents and actions as part of the 120-day contract There are several items that Town Council needs to approve or act on in order to meet the requirements of DHCD. They are as 1. Memorandum of Understanding with the Redevelopment and Housing Authority that authorizes the Authority to administer  homes int the designated Phase 1 area of the Hilltop Community in 2022.  Council authorized submittal ofas second competitive CDBG application for the Hilltop Community.  negotiation period. follows:  certain financial and contractual arrangements related to the CDBG.  2. Residential Anti-displacement Policy 3. Non-Discrimination Policy 4. Section 3 Local Business Plan 5. Section 504 Grievance Procedure 6. Fair Housing Certificate 7. Housing Program Design (Adoption) 8. Lead Based Paint Presumption (Summary) 10. Program Income Plan (Certification) 11. Project Management Plan (Town Manager execution)  9. Appoint the Hilltop Community Housing Rehabilitation Board (Policy Board).  ACTION REQUESTED:  Town Council is requested to adopt the attached Resolution that encompasses these approvals and actions as required by DHCD for  issuing a contract to the Town for awarded housing improvement funds.  Attachment: Resolution DATE: DENIED DEFERREDTO:  YES NO OTHER () () () TOWNATTY. () IT. () () () COMM. DEV. () POLICE () () () ELECTRIC () () () ENGINEERING ( ) OTHER () () () FINANCE  ROUTING  BLACK CARSON () HAILEY JOHANNESSEN STANLEY UPDIKE  () () ()  APPROVED () FOREMAN  ) PUBLIC SERV. ()  () ()  () ) () )  () FIRE DEPT. () ) H.R.    RESOLUTION  APPROVING CERTAIN MATTERS RELATEDTO/ A DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT COMMUNITY DEVELOPMENT BLOCK GRANT  WHEREAS, the Town of Bedford ("Town"), in cooperation with the Town of Bedford Redevelopment and Housing Authority (the "Authority"), intends to accept that certain Community Development Block Grant 23-23-07 from the Virginia Department of Housing and Community Development ("DHCD") relating to the rehabilitation of the Phase 2 area of the  Hilltop community within the town (the "Project"); and  WHEREAS, the Council of the Town must adopt and approve certain policies and documents in order for the Authority to be enabled, under state and federal policy, to carry out the  Project; and  WHEREAS, this resolution is adopted for the purposes of carrying out the purposes oft the Community Development Block Grant Program, as provided by state and federal regulation and enabled by Section 15.2-956 of the Code of Virginia, 1950, as amended, and the Housing Authorities Act of 1938, Chapter 1 ofTitle 36 of the Code of Virginia, 1950, as amended, and in order to ensure administrative support for the Authority's efforts with respect to the Project.  BE IT RESOLVED by the Town Council of the Town of Bedford, Virginia, that the  following actions are hereby authorized and directed:  The Town Manager shall execute and deliver the Memorandum of Understanding between the Authority and Council, a true copy of which shall be held among the The Council hereby approves the Residential Anti-displacement and Relocation Assistance Plan Certification Policy, a true copy of which shall be held among the The Council hereby approves the Non-Discrimination Policy, a true copy ofwhich The Council hereby approves the Section 3 - Business and Employment Plan, a true copy of which shall be held among the records ofthe Town Council. The Council hereby approves the Section 504 Grievance Procedure, a true copy of which shall be held among the records of the Town Council. The Town Manager shall execute and deliver the Fair Housing Certification, a true copy ofwhich shall be held among the records of the Town Council.  records oft the Town Council. records ofthe Town Council.  shall be held among the records of the Town Council.    The Town Manager hereby approves the Housing Program Design, a true copy of which shall be held among the records of the Town Council. The Town Manager hereby approves the Program Income Plan, although noi income is anticipated while DHCD determines the loans to be forgivable. The Town Council elects to presume that all painted surfaces are coated with lead- based paint in furtherance ofal Notice ofl Lead-Based Paint Presumption Policy, a true copy ofwhich shall be held among the records oft the Town Council. The Department of Housing and Community Development (DHCD) requires the formation of a Hilltop Community Housing Rehabilitation Policy Board as part of the CDBG grant award. This group exists to make regular project decisions sO that The following members, already part of the Housing Management Team for the  Council is not required to do SO.  project, shall be officially designated as appointed members:  Bart Warner, Town Manager C.G. Stanley, Town Council Member Mary Zirkle, Town Planning Anne Cantrell, Finance Gary McIver, Town Building Official Jefrado Granger, Program Administrator Brian Goldman, Rehabilitation Specialist  Bob Carson, Community Sparkplug and Town Council Member The Town Attorney is authorized to provide such legal services to the Authority as it may require, at the cost of the Town to the extent not paid from the funds provided in the Block Grant, to carry out the actions provided for herein, and is authorized The Town Manager or his designee or designees is authorized and directed to carry out, or cause to be carried out, those tasks provided for in the agreements and  to act as trustee for any loans made pursuant to the Block Grant.  policies adopted above.    Fair Housing Certification  Compliance with Title VIII oft the Civil Rights Act of 1968  Whereas, the Town of Bedford, Virginia has been offered and intends to accept federal funds authorized under the Housing and Community Development Act of 1974, as amended, and Whereas, recipients of funding under the Act are required to take action to affirmatively further Therefore, the Town of Bedford, Virginia agrees to take at least one action to affirmatively further fair housing each grant year, during the life ofi its project funded with Community Development Block Grant funds. The action taken will be selected from a list provided by the  fairhousing;  Virginia Department of Housing and Community Development.  Duly adopted at the regular meeting oft the Bedford Town Council on  2024.  Signature of Authorized Official  Date    Town of Bedford Targeted Housing Rehabilitation CDBG Project #2 23-23-07 Project Management Plan  Hilltop Community Revitalization Project-1 Phase 2  Section I.  Purpose of Plan  The Project Management Plan (PMP) isa contract document thati identifies all major responsibilities and tasks involved in successfully completing the project. Itstipulates the person(s) responsible for all tasks ands schedules andi includes projected completion dates for all tasks. Thel PMP also provides the management team with a tool for monitoring thej project'sprogress: tol help ensure its completion within the established timeframe approved and agreed tol by DHCD. It must be maintained and updated  throughout the course oft thej project.  Section M. Overview and Project Area Description  The Town of] Bedford! has received a Community Improvement Grant (CIG) funding from the Virginia Department of Housing and Community Development (VDHCD). The purpose ofthe CDBG CIGisto improve the living conditions of11 households, all ofwhich are low- toi moderate-income households, through housing rehabilitation. This Phase 2 project is anticipated to provide benefits to 17 persons, all of Included in the breakdown of anticipated beneficiaries are the following anticipated housing rehab  whom are LMI individuals.  makeup:  A. Rehabilitation of 4 LMI single-family owner-occupied housing units to DHCD Housing  Quality Standards (HQS); and  B. Rehabilitation of 5LMI investor-owned housing units to DHCDI HQS; and : Substantial reconstruction of2 LMI single-family owner-occupied housing units; and D. Clearance of all junk, debris, overgrown brush, and tree removal that may be impeding sidewalks, utility access, line of sight on roadways, or endangering residential structures, as practical and inoperable vehicles, and dilapidated structures from the project area, including two neighborhood cleanup sessions to assist residents to dispose of outside debris.  The geographic project area is generally defined as the area between West King Street to the north and Liberty Street tot the south and contained by Crenshaw Street to the west and! Edmund Street to the east.  Section mI. Proiect Funding DHCD funding to the" Town ofl Bedford, as follows: Total Project Costs: $1.071.644  $1,071,644 in CDBG funding and share documentation.  Leverage funding: None pledged to this project buti ifexpended, maintain records,  1of5 Hilltop Community Revitalization Phase2 Project Management Plan    CDBG Project #:23-23-07 Project Budget: See Attachment: 1 Contract Date: TBD Contract Completion. Date: TBD Section IV: Project Implementation  This grant will be guided by thel Hilltop Community Revitalization Project Management Team ("PMT") and supporting partners. The following persons or groups will coordinate the project implementation.  Team Member Bart Wamer  Grant Role  Responsibilities and Role  Town Manager mamer@beforahagoy Director of Planning and Town oversight mainlebfordhagow, Town Council Member sanlg/@hdorhagoy Building Official; inspections gmcher@baforhagoy,  Mr. Wamer has primary responsibility for project completion, administration, and overall decision making; sign all contract documents; review all project reports submitted to DHCD; and review, sign and forward the final performance documents to DHCD. On behalf of the Town, provide the day-to-day oversight Administer; shall serve as the' Town's contact on approval ofchange orders, shall approve all invoices and housing construction project documents; authorized to submit all applicable documentation tol DHCD via CAMS. Member ofthe Project Management Team and provide support to/for decision ofthe Team; provide updates and serve as project liaison to the Bedford Town Council. Ensure rehabilitation work follows electrical, HVAC, and building codes; provide written evidence of passed inspections; provide oversight and inspection of rental properties to ensure local code compliance; serve as a project advocate; provide any detailed housing information that will be essential in eliminating substandard conditions. accounting system and all necessary finançial documents; authorized to submit all applicable documentation to Assistance with drafting of deed/loan instruments and  Mary Zirkle  Community Development, primary oft the project and provide direct oversight of the Project  C.G. Stanley Gary McIver  Anne Cantrell  Finance: Director; manage project Serve as manager of grant finances; maintain the  funding. ccmral@badordhgoy Town Attorney mldabeplmanlowcon, Re-development Housing Authority Member mansel@ledemhagow, Re-development Housing Authority Member Omesier@lejor.hagoy Re-development Housing Authority Member doster@bedordhagow, Re-development Housing Authority Member wati@bedorivagow,  DHCD via CAMS. other legal actions as necessary  Michael W.S. Lockaby Rusty Mansel Jim Messier David Foster Georgiann Watts  Oversee Project Administrator and management of entire project; meet monthly (tol best ability) to ensure the project isn moving forward according to schedule and completed according to DCHD requirements; address complaints not resolved by Project Administrator, Rehab Specialist, Engineer, or Housing Board; assure program complies with Federal, State and local laws; assist in assuring coordination and proper sequencing of project elements  2of5 Hilltop Community Revitalization Phase 2 Project Management Plan    Ann Duncan  Re-development Housing Authority Member duman@bedorhagoy Sparkplug (Community Residen/Redevelopmen Housing Authority Member/ Planning Commission Member) leoles@beordhagov, Sparkplug (Town Council President ofNAACP Bedford Chapter) rohererpmrmal.con, Rehablitation Specialist  Frances Coles Robert Carson  Member of the Project Management Team and provide support to/for decision oft the Team; assist in relaying program and construction information to neighborhood residents, relay community concerns to the full  Member, Community resident and Management Team; serve as program advocate.  Brian Goldman  Ber represented at Housing Rehabilitation Board meetings and Administrator toj prepare Master Specifications and administrative documents, develop a list of pre-qualified contractors, distribute bid packets to qualified contractors, conduct pre-bid conference and answers any questions and clarify bid items via addenda tol bid documents, provide pre- bid rehabilitation quotes; review all bids and prepare bid tabulations with bid recommendations, conduct a pre- construction conference, review all pay request, review and approve all contractor change orders, resolve contractor inquiries and questions during construction, insure all HUD and DHC lead-based paint procedures and requirements are followed, conduct site inspections to ensure compliance with work write-ups.prepare. a punch listi inspection, conducta final inspection toi include Section 8, and DHCD requirements and post blower door test, and recommend final  Orian@architechraaparmers.com, Management Team mectings as needed; assist Project  payment Assistance  DHCD representative; technical DHCD Project Specialist and point of contact for Technical  Kathryn Bique Jefrado Granger  assistance Aathrym.biqueQdhcdviryinia.gov, Project Administrator; Grant Management efradegunger@epaconr  Bei responsible to Town ofl Bedford Manager and Director of Planning & Community Development, prepare and maintain project Management Plan, Housing Rehabilitation Program Design, and project budget; set up and maintain files and records for entire grant period; coordinate and maintain records ofPMT and Rehab Board, and neighborhood meetings; coordinate with the Town's attorney on Deeds of Trust for housing rehab; complete Section 8i inspection of homes; receive rehab applications and verify income and eligibility; coordinate with rehab specialist on advertisement for rehab construction, prepare draft reimbursements, monthly reports, and all documentation and upload onto CAMS for final Town submittal; serve as project point of contact for DHCD, Town, rehab specialist and engineers, as needed; provide and/or coordinate Home. Maintenance  Education Program.  3of5 Hilltop Community Revitalization Phase 2 Project Management Plan    The PMT will monitor grant project progress to ensure success (on time, in budget, benefits delivered). It isanticipated that new community spark plugs will ultimately be added toi the current Management Team. Monthly meetings should compare the initial timeline with reality and identify corrective measures if needed to get thep project back on track for completion within the determined time frame. The grant Project Schedule serves as a roadmap for timely completion of project activities and should be reviewed at eachl PMTmeeting and updated to reflect any changes or actual implementation timing. Attachment 2a and Attachment 2b -presents thel Hilltop Community Revitalization Project- Phase 2 Grant (CDBG# 23-23-07)1 Master Project Schedule and the Project Activity Specific Timeline will support the completion oft the project with responsible and supporting parties, scheduled completions, and anticipated completion dates within the 24-month DHCD grant award  Section V: Proiect Schedule  contract cycle.  Section VI: General Program Monitoring  Thel PMT will meet monthly (generally) to guide and monitor project implementation. During these meetings, updates will bej provided and any complications or changes in scope will be discussed. Each meeting shall inçlude ai review of thel Project Schedule to ensure project is on target, and ifnot, Each PMT meeting will be recorded by thel Project. Administrator. The meeting summaries will be uploaded onto CAMS: as a component oft the monthlyi project reports submitted to DHCD. Thel PMT Phase 2 meeting will bel held, unless extenuating circumstances require an adjustment, the 2nd Thursday of each month beginning at 5:30 pm and held at 215 E. Main Street, Bedford, VA 24523 in Council Chambers. The meeting is heldi in Town of Bedford Municipal Building to ensure ease oflocal The Program Administrator, Jefrado Granger, will receive and approve allj project invoices. With approval from Mary Zirkle, Finance Director, Anne Cantrell, will process payment and forward payment confirmation to. Jefrado Granger. Payments written against CDBG CIG project account will be signed by  adjustments to thel Project Schedule will be reflected.  stakeholders and sparkplugs attendance.  Section VII. Review.Approval, and Payment ofInvoices those individuals authorized' by the Town of Bedford. Section VIII. Potentiall Project Challenges  a. Substantial Reconstruction Homes DHCD had, in recognition of increased housing cost, increased the cost limits for substantial reconstruction homes. However, strong interest and high costs will require the' Town to be creative and committed to continually seek partnership bridge funding. As such the Town will seek partnership with USDA, LHR and other housing providers to take advantage ofa any additional funding to which al beneficiary property may be b. More beneficiary applicants than funds will allow - While it took some time, the Phase 1 project has generated great interest from Hilltop residents - as evidenced by the 20 total Participation Agreement received. As such, it is recognized that there will be the need for application rating and clear evaluation/ranking of need. The Town has been proactive in providing clear understanding of the pending application process and will, with award, provide an open and transparent application ranking, evaluation, and complaint procedure. Additionally, as noted above, the Town will provide additional funding and pariner guidance information to residents. This will include seeking banking partners to work with some homeowners that, while over income for the CDBG program, may find affording housing  eligible.  improvements challenging.  4of5 Hilltop Community Revitalization Phase 2 Project Management Plan    Heirl Properties- There are two identified properties in the project area that are Heir properties. Though the Project Administrator has obtained preliminary indications that the families are willing to provide the necessary level of assistance and agreement to secure property ownership, iti is understood that family dynamics are subject to change quicklyandt thej property owners must still agree to participate in the project. The project administrator will be working  toi identify any conflicts early in the process.  Section IX. Management Plan - Amendments be submitted tol DHCD for approval. Section X. Management Plan Approval Housing and Community Development. Section XI. Signatures  This is al Phase 21 Project Management Plani is a fluid document. As such, changes that occur through the implementation of the grant project should be reflected. All changes and/or amendments tot the Plan will  This' Town ofl Bedford Hilltop Community Revitalization Project - Phase 2 (CDBG #23-23-07) Management Plan document represents what is intended to be a guiding document to implement the completion of a pending CDBG Community improvement Grant from the Virginia Department of  Signatures indicate concurrence with Plan and! Project Schedule Timeline:  Barrett "Bart" Warner, Town Manager  Date Date Date Date Date  Mary Zirkle, Community Development Director  Anne Cantrell, Finance Director  Jefrado Granger, Program Administrator Kathryn Bique, DHCD Project Specialist  5of5 Hilltop Community Revitalization Phase 2 Project Management Plan    Budget Town of Bedford Hilltop Project-Phase 2  Attachment 1 BUDGETLINE ITEM  Proposed CDBG  Total Non-CDBG  ADMINISTRATION CVPDC Admin  Contract Monitoring (24 months x $250) Construction Completion (11x $2000) Administrative Project Close-out Satisfactory Compliance Review(s)(2 @ $2500e ea) $ Execution of Project Contract(s)(11 @ $3000 ea) $ Execution of DHCD Contract Fair Housing Activities (2 @ $250 each)  $ $ $ $ $ $ Subtotal $ Subtotal $  6,000 $ 22,000 2,500 5,000 $ 33,000 $ 5,000 $ 500 74,000 7,000 $ 3,000 $ 84,000 $ $ 4,000 1,000 $ 8,000 $ 20,000 141,844 4,200 175,044$ 1,250 12,000 25,000 375,500 5,250 419,000 $ 10,000 $ 10,000 300,000 65,000 2,000 500 $ 2,100 389,600 $ 1,071,644 $ $1,071,644.00  CVPDC subtotal $  Legal Advertising  NEIGHBORHOOD CLEAN-UP OWNER-OCCUPIED HOUSING REHABILITATION HMEP (4 @ $250) Temporary Relocation Rehabilitation Specialist (4 @ $5000 ea) Owner-Occupied Construction CRSC  $ $ $ $ $ Subtotal $ $ $ $ $ $ Subtotal $ $ $ $ $ $ $ $ Subtotal $ Subtotal $ TOTAL  INVESTOR-OWNED HOUSING REHABILITATION HMEP( (5 @ $250) Temporary! Relocation Rehabilitation Specialist (5 @ $5000 ea) Investor-Owned Construction CRSC  SUBSTANTIAL RECONSTRUCTION Temporary Relocation Rehabilitation Specialist (2 @ $5000) Owner-Occupied Construction SRI Demolition SR Demo Asbestos Inspection HMEP (2 @ $250) CRSC    Pay for Performance Budget Town of Bedford Hilltop Community Revitalization Project-Phase 2  BUDGET LINE ITEM  Performance Measure 24 months @ $250 each $ 11@ $2000 each 2@ $2,500 each 11@ $3,000 each 2@ $250 each  Amount  ADMINISTRATION Contract Monitoring Construction Completion Administrative Project Close-out Satisfactory Compliance Review/s) Execution of Project Contract(s) Execution of DHCD Contract Fair Housing Activities  6,000 22,000 2,500 5,000 33,000 5,000 500 74,000  $ $ $    CDBG DERIVATION OFCOST  Town ofl Bedford Hilltop Community Revitalization Project-Phase?  Total  CDBG  Non-CDBG  Source of Estimate Administratson payments basedon performance; Nott to excecd limits stated 4/1/2024 in CDBG Program! Design Cost forp project sign, mailings. llyers, markcting materials fors meetings Cost associated witho decdoftrusis recordings, titles searches Visual Consultant Inspection and Rehab ofproperties; Specialist esiimatations! based onp projected costs Rehab Specialists Estimate fori inspected homes Based lons average costs forl legal fees, tennite inspections, electriçali inspections, 4/1/2024 blower door testing. leadt testing cosis Project Cosis provided by Rchabilitation Svecialist Anticipating2 homes with disabled personst that require in-homer repairs requiring movo-out; Program Allowable Policy Costs Based on CDBG Aliowable Costs Rchab Specialists Estimale fori inspected homes Based lona average costs for legal foes, tennie inspections, cisctrical inspections, 4/1/2024 blower door testing. Jleadt testing costs Project Costs provided by Rehabilitation Specialist Anticipating! home with children, and3 hoenes with disabted persons thatt requires in- home repairsr requiring move-out; Prouam Allowable Costs Based on CDBG Allowable Costs Rehab Specialisis and Consultant estimations based on recent demolition 4/1/2024 cosisi in Current CDBG projects Rehab Specialist and CDBG SRC Cost limits Based on average costs forl legal foesa and blower door tcsting Average cost ofAsbestos Testing? from Local Contractor Project Costsprovided! by Rchabilitation Specialist Housing: and Slorage Costs for2 houscholds; Program Allowable Costs Policy Basedo on CDBG Allowable Cosis  Date 4/1/2024 4/1/2024 4/1/2024 4/1/2024 4/1/2024 Policy 4/1/2024 4/1/2024 Policy Policy  ADMINISTRATION project limeline Advertising Legal  Consultant Pay-for-Performance for 241 month  74,000.00 $ 74,000.00 s S 3,000.00 $ 3,000.00 $ 7,000.00 s 7,000.00 $ 4,000.00 S 4,000.00 $ s 141,844.00 $ 141,844.00 $ $ 4,200.00 $ 4,200.00 $ 20,000.00 s 20,000.00 $ $ 8,000.00 s 8,000.00 s $ 1,000.00 S 1,000.00 S s 375,500.00 s 375,500.00 $ $ 5,250.00 $ 5,250.00 s $ 25,000.00 $ 25,000.00 $ S 12,000.00 s 12,000.60 $ s 1,250.00 $ 1,250.00 s 65,000.00 $ 65,000.00 s $ 300,000.00 $ 300,000.00 $ $ 2,100.00 $ 2,100.00 $ $ 2,000.00 $ 2,000.00 $ s 10,000.00 s 10,000.00 $ 10,000.00 S 10,000.00 $ 500.00 500.00 s 51,071,64.005 1,071,644.00 S  NBGIGOANCODCIEANUP Estimated costs foro clean-up and disposal fees to clear debris on 4 properties OWNER OCCUPIEDI HOUSINGI REHAB Estimated cost for 4homes Construction Related Soft Costs (thoser not altematiey listed) Housing Rehab Specialist Temporay Relocation Home Maintenance education Pregram fort home maintenance supplies at $250 per home INVESTOR-OWNEDI HOUSING REHAB Estimated cost for 51 homes Construction Related Soft Cosis (thoser not alteratley listed) Housing Rehab Specialist Temporay Relocation Home Maintenance education Program forl home maintenance supplies al $250 per home SUBSTANTIAL RECONSTRUCTION Clearance and Demolition of2 homes Construction of2 Replacemen! homes based ona CDBGI Program Design Cost Limits and contingency Construction Related: Soft Costs 2 Asbestos Inspections Housing Rehab Specialist Temporary Relocation Home Maintenance education Program for! home maintenance supplies at $250 per home TOTAL  4/1/2024 4/1/2024 4/1/2024 4/1/2024 Policy        sl 8 4945 28  944469 88s  46   99.  g  a    TOWN OF BEDFORD Town of Bedford Hilltop  Community Revitalization Project-Phase2  CIG#23-23-07 PREPARED BY: Jefrado Granger Town of Bedford  Central VA Planning District Commission  and  PREPARED FOR:  Project Management Team & Town of Bedford, Virginia  Housing Rehabilitation Oversight Board  ADOPTED BY TOWN COUNCIL:  Original: May 28, 2024  FUNDED BY:  VIRGINIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT    Town of Bedford Hilltop Community Revitalization Project-Phase 2 GENERAL PROVISIONS  MAY2024-Housing Program Design  The following covers the residential rehabilitation program for the Town of Bedford's (Town) Hilltop Community Revitalization Project-Phase 2, a targeted housing Community Development Block Grant (CDBG) project funded by the Department of Housing and Community Development (DHCD). This document is the housing policy and procedural guide for the orderly and equitable implementation of the housing rehabilitation element of the CIG  #23-23-07. Purpose and Objectives  The purpose of this project is to improve the living conditions of low- and moderate-income households living in Phase 2 of the Hilltop Community and to enhance the economic vitality and quality of living for the entire Hilltop Community neighborhood. Specifically, the project will: Improve housing characteristics to safe, decent, and standard conditions  To preserve the existing housing stock, and persons in the project area. Definition of the Project Area  Toi improve the environment and overall living conditions for low and moderate-income  The Town of Bedford Hilltop Community Revitalization Project Phase 2 is defined as an area between West King Street to the north and Liberty Street to the south and contained by Crenshaw Street to the west and Edmund Street to the east. Though the homes subject to this grant have already been identified in the planning phase, should funding become available for additional rehabilitation activities, any home occupied by a low-to moderate and program eligible family that has provided all program required information and completed an application and has housing needs may be eligible for project assistance. See Project Area Map Program Income funds - if generated from the project - after the completion of the project may be used in any part of the Hilltop Community or the Town. Under current CDBG guidelines, no program income is expected to be generated at this time. See Exhibit C.  as EXHIBIT D.  ORGANIZATION FOR PROGRAM OVERSIGHT  The Town will contract with Central Virginia Planning District Commission (CVPDC) for Program Administration. As such, the CVPDC will be responsible for assuring that all DHCD and federal The Town will establish both a Project Management Team and a Housing Oversight Board. The Program Management Team (PMT) will guide the regular housing rehabilitation program activities. The Housing Oversight Board (Housing Board) is the policy board for the Project.  regulations are followed.  Page 2of26    Town of Bedford Hilltop Community Revitalization Project-Phase 2  MAY2024-Housing Program Design  Town of Bedford Project Management Team  The Town of Bedford's Redevelopment Housing Board will serve also as the members PMT for this project with the addition of community area representatives, or sparkplugs. The duties of  the PMT include, but are not limited to, the following:  Conduct meetings as outlined in the Housing Program Design Monitor the Project's Progress and to assure Project's success.  Review Program Administrator and Rehabilitation Specialist work progress and help in the case of any potential delays or challenges to successful completion of the project Assure project benefits are being accomplished in accordance with developed program Approve Town of Bedford Housing Rehabilitation Program Design and all revisions Approval of and adherence to the Program Management Plan and all revisions Approval and adherence to the Program Income Plan and all revisions Ensure program activities are carried out in a fair and equitable manner  guideline  Town of Bedford Housing Oversight Board  The Town of Bedford Housing Rehabilitation Board is appointed by the Town Council. Generally, the Housing Board conducts meetings on an as needed basis and implements policies as outlined in its adopted By-Laws. The Town of Bedford Housing Board will consist of at least 4 members and will consist of, at a minimum, the Town Manager or designated alternative, Town Council representative, Town Planning Director, and at least one community area representative  who is not receiving assistance from the program, or sparkplug. The Housing Board will be responsible, at a minimum, for:  Conduct meetings and policies as outlined in the Housing Program Design Approve applications for assistance based on objective rating system, as needed Approve contractors qualified as eligible to bid on CDBG eligible homes Approve bids and award contracts for construction work to be performed Resolve complaints or disputes not alleviated through Rehab Specialist and Program Approval of and adherence to the Program Management Plan and all revisions  Administrator  Housing Program Primary Personnel  The following individuals will guide the day- -to-day housing program. All primary program staff, except Anne Cantrell and Mary Zirkle, are contracted by the Town to provide program specified  assistance.  Housing Program Administrator: Jefrado Granger  The Housing Program Administrator is the individual designated by the Grantee to undertake the daily grant management functions to include, but not limited to, the following: Solicit housing assistance applications and maintain waiting lists, as applicable Apply approved priority ranking and criteria when reporting findings to the Housing  Interview applicants and verify information  Page 30 of26    Town of Bedford Hilliop Community Revitalization Project-Phase 2  MAY2024-Housing Program Design  Board  Ensuring the application process is fully completed to DHCD guidelines, including intake,  title search, income verification, and calculation of ability-to-pay Present applications to the Housing Board for review and approval Provide and assist rehabilitation specialist in coordination of program activities  Prepare contracts and drawdown request Arrange for home maintenance activities  Provide regular financial reports to the rehabilitation board  Perform all daily administrative activities and reports necessary to carry out the program inaccordance with DHCD guidelines, including program file maintenance  Rehabilitation Specialist: Brian Goldman  Once the Town of Bedford has a contract agreement with a Rehabilitation Specialist, Brian Goldman of Architectural Partners, his responsibilities shall include, but are not limited to, the following: Perform DHCD Housing Quality Standards assessment including electrical, chimney, and Develop work write-ups for rehabilitation construction, develop bid packages for houses, conduct pre-bid meeting with potential contractors (including the discussion of Accept, review, and recommend bids and bid awards from qualified contractors for Initiate, review, and recommend approval of change orders and payments to contractors Perform and coordinate initial and post rehabilitation blower door test Perform and coordinate lead-based paint interim control inspections, write-up, and Perform final inspection of each home receiving work to ensure the desired intent and compliance with HUD Section 8 Housing Quality Standards, local standards, and DHCD  pest inspections regulatory info)  performance of activities in work write ups. Inspect and manage rehabilitation construction progress  clearance testing  Act as a liaison between the contractors and the Town  Supplemental Housing Standards.  Finance Director: Anne Cantrell  Set up and maintain accounting system and all necessary accounts for the program  Have a general oversight for program budget Notify Program Administrator of any budget discrepancies Director of Planning & Community Development: Mary Zirkle Serve as the primary Town of Bedford contact for the project  Confirm all documentation and serve as liaison on behalf of the project to the Town of  Bedford Town Council and Town Manager Review and approve invoices Submit CAMS documentation to DHCD. Rehabilitation Specialist are unable to answer.  Responsible to any locality specific questions that the Project Administrator or  Page 4of26    Town of Bedford Hilltop Community Revitalization Project-Phase 2 Housing Program Support Personnel Town Attorney: Michael Lockaby  MAY2024-Housing Program Design  The Town Attorney is called upon from time to time to review and approve all contractual documents and aides, as necessary, in the review of ownership documentation or drafting responses to any program complaints filed by residents or other persons relative to the project. The Building Official is responsible for assisting and reviewing homes for rehabilitation construction, where deemed necessary per scope of work. Upon completion by the housing contractor, the building official shall ensure compliance with local and state building codes and issue any relevant certificates to establish legal occupancy. An inspection report must be filled out after each visit and must also be submitted to the Program Administrator.  Building Official: Gary Mclver  PROGRAM ELIGIBILITY REQUIREMENTS and program property eligibility requirements. Applicants Eligible for Assistance  The eligibility of project applicants shall be based upon a positive finding that the applicants meet residency requirements, income and asset limitations, property eligibility requirements,  Applicant eligibility for receiving housing rehabilitation assistance under this program requires 1. The appliçant and/or dwelling needed to be occupied on a regular basis as of. June 1, 2. The applicant must be an owner of a residential dwelling existing in the Project Area or have life time rights to the property. In the case of individuals with lifetime rights to the property, the lifetime right must be legally recorded in the governing locality and both the 3. Renters may initiate a request for assistance, but only property owners may receive direct 4. The household shall not have assets totaling more than $30,000. The value of the house to ber rehabilitated, land shown on its recorded plat, normal household contents and two vehiçles will not be counted as assets. Additional guidelines for other assets categories can . Gross household income must be at or below 80% of the area median income adjusted for family size. The HUD Section 8 Income Limits as adjusted for household size can be found 6. Gross household income and family size are determined following DHCD guidelines which  that the applicant meet all the following criteria:  2023.  owner and resident must sign the Deed-of-Trust.  rehabilitation assistance.  be found in the DCHD manual.  attached as Exhibit A. are available upon request.  Page 5of26    Town of Bedford Hilltop Community Revitalization Project-Phase 2  MAY2024-Housing Program Design  7. Income documentation will be verified from independent sources such as applicant's employer, Social Security Administration, Virginia Unemployment Commission, W-2 forms, ort by independently certified tax statements. The Housing Program Administrator will 8. Applicant must be willing to commit to a loan repayment schedule, should it become 9. Applicant must provide documentation that adequate hazard insurance for the house is in effect, listing the Town of Bedford Redevelopment and Housing Authority as primary loss payee. The insurance must remain in effect until the Certificate of Satisfaction has been 10. Debris removal is a pre-construction requirement to participate in the housing rehabilitation program. Property owners will be required to clear the exterior and interior rehabilitation site of alli identified trash, debris, inoperable vehicles, and derelict structures prior to receiving rehabilitation assistance. If the owner is elderly or handicapped and cannot physically clear the property or arrange for the removal of the debris, the work will be added to the rehabilitation work write-up and included as part of the contractors' bid  verify all reported income.  required, based upon their ability-to-pay.  issued by the Town of Bedford.  package and the subsequent lien on the property.  Applicants Ineligible for Assistance under the following circumstances.  Applicants shall be determined to be ineligible to receive housing rehabilitation assistance 1. Where the dwelling for which assistance is sought is not within the project area. 2. Where the permanent occupants of the dwelling for which assistance is sought are not demonstrated to qualify as being low and moderate income, therefore, the household's gross income exceeds HUD's current Section 8 Income Guidelines (Exhibit A) 3. Where the occupants of the dwelling for which assistance is sought have assets (savings, stocks, the tax assessed value of real estate excluding primary residence, investments, cash on hand, rental properties, etc.) exceeding a maximum asset figure of $30,000. 4. Where the dwelling for which assistance is sought did not exist within the project area prior to. June 1, 2023. This stipulation is intended to ban rehabilitation of relocated structures orl long-time vacant structures from gaining assistance to the exception of residents in the community prior to June 1, 2023. These homes may be included at the end of the project with allowable funding and Town/DHCD approval. 5. Where the owner applicant of a vacant or rental dwelling fails to ensure that, upon completion of rehabilitation, the dwelling will be occupied by persons of low and . Where the applicant fails to provide a complete application for assistance, or otherwise fails to provide satisfactory documentation concerning income and assets. 7. Where the dwelling for which assistance is sought, requires rehabilitation investments exceeding CDBG cost limits, attached as Exhibit B, and substantial reconstruction is not  moderate income.  Page 6of26    Town of Bedford Hilltop Community Revitalization Project-Phase 2  MAY2024-Housing Program Design  feasible unless the owner commits to provide the balance of funds necessary for rehabilitating the dwelling to DHCD HQS or is otherwise determined to be technically infeasible for rehabilitation by the Housing Rehabilitation Specialist. 3. After consultation with DHCD, it is determined that substantial liens or other legal claims to the property preempt the owner of record from retaining possession of the property during the rehabilitation project or subsequent to rehabilitation completion. 9. Applications will not be approved for households in which there is independently documented criminal or socially dysfunctional activity is taking place. Any mortgages the homeowner has in place must be current, which will be verified immediately prior to 10. Where the occupant of the dwelling for which assistance is sought refused to clear property  construction.  of all junk, debris, inoperable vehicles before work is started.  HOUSING REHABILITATION IMPROVEMENT PROGRAMMING GUIDELINES All dwelling structures located within the project area prior to June 1, 2023, including conventionally constructed homes, manufactured homes, modular housing, mobile homes, single family detached houses, mobile homes, duplex houses, and multi-family housing structures shall be eligible for rehabilitation assistance, subject to applicant's eligibility. All the dwelling structures noted above that are occupied by low and moderate income residents are suitable for rehabilitation if the unit can be bought up to Section 8 Housing Quality Standards, including the DHCD Supplemental Rehabilitation Standards and Local Standards if such work can be completed with a CDBG or IPR investment not to exceed the basic costs limits with exceptions being made in cases where water, sewer, handicapped access, or additional bedrooms are needed. All exceptions must be bid as "bid alternates". Each of the exception items must be in the bid form as an alternate sO the cost or each exception can be easily documented. No more than $10,000 may be used to rehabilitate a mobile home, including Types Of Dwelling Structures and Other Structures Not Eligible for Assistance Unsuitable for rehabilitation" is defined as residential structures which major structural conditions that were either inadequate in original construction or has failing foundation, floor, wall, ceiling, roof, or exterior systems. The Rehabilitation Specialist must document specific conditions and determine that more than 50 percent (50%) of the house must be demolished in order to comply with HUD Section 8 Housing Quality Standards. System failures or violations in electrical, plumbing, doors, Low and moderate income occupied dwelling structures which cannot be brought up to meet HUD Section 8 Housing Quality Standards, with CDBG & IPR investment in accordance with the DHCD cost limits, determined yearly and available in the DHCD Program Manual, shall be considered "unsuitable for rehabilitation", thus ineligible for assistance. In the case of mobile homes, work may not exceed $10,000 in value to meet standards. If the Town encounters a family in a substandard owner-occupied dwelling and can substantially reconstruct the house on  Types Of Dwelings/Structures Eligible for Assistance  exceptions.  windows, and other components may also be taken into consideration.  Page 70 of 26    Town of Bedford Hilltop Community Revitalization Project-Phase 2  MAY202--Housing Program Design  the same site, within CDBG/IPR cost limits, the existing structure can be demolished, and a new dwelling constructed. Additionally, another structure can be found for purchase and/or rehabilitation. DHCD housing limits, including exceptions, may not be exceeded. Demolition of the substandard dwelling must be removed, as a housing requirement. Each exception must be documented, bid separately, and easily found within the full bid documentation. Substantial reconstruction is a last resort after other strategies such as rehabilitation and relocation have been explored and documented as infeasible. The Town will review alternative types of substantial reconstruction with the Housing Rehabilitation Specialist. This will include reviewing a selection of already prepared plans and acquiring prices for stick built and modular Non-dwelling structures including detached garages, detached storage buildings, other out- buildings, structures used to house business activities cannot receive housing rehabilitation assistance. Garages or carports attached directly to a dwelling may be eligible for assistance if  homes to get the best price.  the action pertains to the overall living of the residents.  Vacant Properties  No vacant unit shall be rehabilitated with CDBG funding unless the house has a history of being consistently occupied over the last two years and was rented for at least six months of the preceding year, the unit was purchased by an LMI household, or the unit is owned by a locality, housing authority, or non-profit and will be sold to or lease-purchased by an LMI household.  Prior written approval must be received from DHCD.  Manufactured Homes  No more than $10,000 of CDBG funds may be used to rehab a manufactured home and that home, after the rehab is complete, must meet DHCD's Housing Quality Standards. Water and wastewater installation is the only allowed exception and its cost may not exceed $10,000. Double-wide or the equivalent with a continuous foundation on footers will not be considereda  manufactured home for these purposes only.  Manufactured (Mobile) homes built prior to 1978 are not eligible for assistance.  Substantial Reconstruction  Ifan occupied dilapidated structure can be substantially reconstructed on the same site for more than the cost limits for CDBG/IPR, the structure may be demolished, and a new dwelling 1. The occupant(s) of the house must be the owner of the property or have a legally 2. The base bid for the newly constructed house cannot exceed DHCD program limits, based 3. Substantial Reconstruction is a last resort after other strategies such as rehabilitation and 4. The house to be replaced must clearly fall under the definition of the locality's Program  constructed. The Substantial Reconstruction Policy is as follows: developed Life Rights or permanent living arrangement. on determined limit at contract signing.  relocation have been explored and documented not feasible.  Page 8 of26    Town of Bedford Hilltop Community Revitalization Project-Phase 2 Design for failing.  MAY2024-Housing Program Design  5. In the case where a contractor has physically begun rehabilitation and is discovered that conditions are worse than expected making the property "unsuitable for rehabilitation" by the local definition the locality may terminate the contract and proceed with 'substantial reconstruction" after submitting an approved written request to DHCD. 6. For properties which are determined to be "unsuitable for reconstruction" either prior to submission of the application to DHCD or during the project, but prior to actual a) The Rehabilitation Specialist must prepare a written itemized costs estimate of the repairs needed to bring the house to HUD Section 8 Housing Quality Standards and the costs must clearly exceed the limitations in the Program Design or the Housing Rehabilitation Specialists must clearly document images that a structural condition exists which clearly deems the structure 'unsuitable for rehabilitation". b) Exceptions cannot exceed the cost chart limits (refer to DHCD CDBG Program  construction, the following process must be followed:  Manual). Exceptions include: Abathroom  Abedroom necessary due to overcrowding Handicapped and/or elderly accessibility Well and/or septic needs Flooding/drainage  Partial Rehabilitation: In certain circumstances, the Grantee may find that some properties are unsuitable for rehabilitation only because they will exceed the base cost limit and not because significant structural damage requires demolition. In such cases the structure can be partially rehabbed sO that all portions of the structure that are used daily by the occupants are brought to DHCD standards. Those portions of the house which do not will be closed off and remain unused. This situation will  require written DHCD approval.  HOUSING REHABILITATION STANDARDS  The fundamental intent of the housing rehabilitation program is to rehabilitate existing substandard dwelling units ini the project area to meet, at a minimum, HUD Section 8 Housing Quality Standards and DHCD Supplemental Housing Rehabilitation Standards. All homes will be evaluated using DHCD's Housing Quality Standards and DHCD's Supplemental Rehabilitation Requirements. The consistent application of these standards will help ensure that all properties are treated equally and receive the improvements that are needed to bring it up to the adopted standard. All improvements must be justified based on the adopted standards. All debris, derelict structures, vehicles, and weeds must be removed from the site before rehabilitation work is started. All measures required to correct identified HUD Section 8 Housing Quality Standards and DHCD Supplemental Standard deficiencies within existing dwellings or on the dwelling grounds are eligible activities for rehabilitation. Cosmetic  improvements are not eligible for funding under this project.  The number of dwelling units to be rehabilitated through the complete Town of Bedford Hilltop Community Revitalization Project-Phase 2 is targeted at eleven (11) units, with an anticipated two  Page 9 of26    Town of Bedford Hilltop Community Revitalization Project-Phase 2 (2) of these being substantial reconstructions.  MAY2024-Housing Program Design  All debris, derelict structures, vehicles, and excessive weed/overgrown areas must be removed from the site before rehabilitation work is started. These activities can be bid separately and Measures of cosmetic improvements that are required to meet Section 8 Housing Quality Standards and DHCD Supplemental Standards are eligible rehabilitation measures. Painting of exterior materials is a typical example of this type of measure helping to both preserve and enhance. Cosmetic measures of superficial nature, providing only to appearance of improvement, but not necessary to on-going-dwelling preservation are disallowed. Cosmetic measures intended to conceal uncorrected Section 8 or DHCD Standards deficiencies are not  included as a component of the overall rehabilitation work.  permitted. RELOCATIONS  The Town of Bedford will follow the requirements of the Uniform Relocation Act for families permanently relocated. Maximum effort shall be made to minimize the need for permanent displacements. However, if needed, the Town of Bedford will try to find other suitable housing within or near the project area, which they could possibly buy or rent. Where needed, the Rehabilitation Board shall identify and secure temporary housing for displaced persons.  Below are additional guidelines for relocations:  1. Families will be encouraged to live with family members or friends during the period they may be temporarily displaced. Lodging will be provided ifiti is necessary. Relocations will be fora a maximum of 45 days for housing rehabilitation and up to 90 days for substantial reconstructions, barring there are no extensions needed due to delays that are identified. The costs associated with relocation will be limited to $2,000.00, but can be increased, up to $5,000.00, on a case- by- case basis to accommodate extensions needed to complete a delay if the budget allows. A temporary relocation agreement will be signed. 2. An on-site storage trailer to store household belongings may be provided, as needed. 3. Homeowner will be responsible for moving items into the storage facility. People physically unable will be assisted with moving their personal belongings.  4. No assistance will be provided for meals.  Temporary displacements and relocations of residents may be required during the period of 1. When an occupant(s) is severely inconvenienced due to the rehabilitation work on the unit- where reasonable use of the kitchen, bedroom, and bathroom causes a hardship to the household, temporary relocation should be sought. The Rehabilitation Specialist will make recommendations to the Rehab Board for consideration on each dwelling to be rehabilitated.  rehabilitation work such as:  2. When there is a possibility that lead- -based paint exists, the household should be  temporarily relocated.  Page 10 of 26    Town of Bedford Hilltop Community Revitalization Project-Phase 2  MAY2024-Housing Program Design  Note: The exceptions to this are:  All household members are 62 years or older Alli interior work will be completed in an eight-hour period Alli interior work will be completed in 5 consecutive days and the bedroom(s), bathroom, and kitchen can be isolated from the rehab work  Only exterior work will be done  TYPES OF ASSISTANCE  Housing rehabilitation assistance will be provided through loans made directly to owners of record of dwellings occupied by eligible low-and-moderate income persons. DHCD will make available 5-year agreements in the form of 100% forgivable loans with project beneficiaries. Selling the property before the five-year compliance period will require prorated repayment  oft the amount of improvements to the property. LOAN ABILITY-TO-PAY CALCULATION  NOTE: As of May 27, 2021, the Department of Housing and Community Development has a stated policy that all monthly home improvement loan payments for work funded by CDBG are Regardless of meeting the LMI eligibility criteria, no household will be considered eligible for housing rehabilitation assistance if their housing unit has already received such assistance under Rehabilitation of investor-owned properties will be allowed to benefit LMI tenants with the 1. The program requires continued occupancy by LMI families for a minimum of 5 years up toa maximum of the term of the rehabilitation loan. To ensure that LMI persons can occupy investor-owned (rental) properties, the allowable rent must be kept to an 2. Ind determining a fair rent level, the cash flow necessary for the investor-owner and the renters should be considered. This program will utilize DHCD's Housing Quality Standards Program Guidelines which uses 35% of gross income as a basis for determining tenants' rent affordability. The tenant's utility costs will be used in determining rent affordability and follow all applicable DCHD guidelines.  to be completely forgiven until further notice. See Exhibit C.  any other DHCD-funded program within the last ten years. SPECIAL CONDITIONS FOR INVESTOR-OWNED PROPERTIES  following conditions:  affordable level.  3. The rent charged to the LMI household may not be raised after rehabilitation unless due to actual increased costs to the owner directly attributable to the rehabilitation work, for example, monthly payments on a rehabilitation loan, increased insurance, or property tax costs, for at least the term of the loan. The rent amount must be clearly established in the contract agreement. The rent amount shall be maintained at the same level for all  subsequent tenants for the balance of the loan term.  Page 11 of26    Town of Bedford. Hilltop Community Revitalization Project-Phase 2  MAY202--Housing Program Design  4. Investor-owners will provide a certification of monthly rent each January following completion of the rehabilitation work to the Project Manager or their designee for the 5. Investor-owners must execute and enter into a legally recorded Investor-Owned Rental Commitment to provide the improved housing units to LMI households for ten (10) years The program will rehabilitate the unit to DHCD HQS. A lien will be placed on the property securing the 5-year loan at zero percent (0%) interest with one hundred percent (100%) of the Landlords must have an eligible tenant in residence within 6 months of the property being rehabilitated or be required to repay the loan in full immediately minus any forgiven portion of the monthly payments paid to date. A copy of the executed lease must be transmitted to the Property receiving Section 8 Rental Assistance will not be considered for assistance.  duration of the loan.  at affordable rents.  cost forgiven over the term of the loan.  Housing Program Administrator.  APPLICATION SELECTION EVALUATION PROCEDURES  The following system will be used in obtaining and processing applications for receiving CDBG Housing Assistance, as necessary. Please note that alli information collected, including demographics, may be shared with the Localities funding partner(s), specifically DHCD.  A. Application Outreach  1. Solicitation of Applicants - Letters and/or flyers will be mailed to all households in the project area. information on when, where, and what is needed to process applications 2. Taking Applications - Applications will be taken at announced in-take dates and locations. Applicants may contact the CVPDC or the Town of Bedford to request an application appointment that is taken at the home. At application in take, the Program Administrator or approved Town official, will be able to take an application from a resident, unless said person is otherwise exempt under Chapter 16, Title 16.2 of the Code of Virginia. A document certifying that the application process is taking place per Federal Regulations will be provided to each applicant. The Project Administrator will verify the information provided to determine if the applicant appears to be eligible to  will be provided.  move to the review of the Housing Board.  B. Application Verification - The Project Administrator must verify information provided through the application. This includes income and asset verification, verification of ownership for homeowners, verification of homeowners or other insurance. Verification will be obtained through a signature to obtain information, copy of Deed, homeowner's  policy, tax forms, Social Security documentation, etc.  Page 12 of26    Town of Bedford Hilltop Community Revitalization Projeci-Phase. 2  MAY2024-Housing Program Design  The Project Administrator, upon verification of income, etc. and assurances that the family is eligible for CDBG assistance will utilize the following priority system for reporting to the Applicants of Investor-owned properties, upon income verification, must provide sufficient information from the property-owner. This information includes name and contact  Housing Board the eligibility and ranking of each applicant.  information.   Application Priority System  Should multiple applications be received, and readiness is equal, applications will be ranked and provided assistance according to the following ranking system: 5p points for lacking/or non-functioning indoor bathroom, 2p points for no or unsanitary water source,  1p point for (non-elderly) single head of household (requires one or more legal 2 points for any elderly household. An elderly household is one in which the head,  dependent under 18),  spouse or sole member is 62 years or older, 2p points for (non-elderly) disabled (when verified), 1point for each dependent child under 18, 2p points for very substandard dwelling unit,  2points for below 50% of the Median income of the surrounding county.  Should the need arise to further prioritize applications, they will be selected according to when applications are received. In situations where delays in rehabilitation, such as on-site handling facilities not being permitted or clear title and readiness are not secure, the priority system may be adjusted to allow work to begin on other projects while more complicated issues are being  resolved.  D. Equitable Distribution of Benefits  1. Race, age, or head of household gender shall not be used as a basis for denying 2. The Housing Board shall not set aside funds or engage any practices which will adversely affect the benefit of low-income, minority, elderly or female-headed  benefit to any income/housing eligible applicant.  households.  E. Application Review  The Housing Board will review each application and corresponding point value. The Board will then provide for approval or denial of housing assistance applications.  F. Application Notification  The Project Administrator will provide each applicant with the time at which the application will be considered for approval (this will always be after all verification items are complete) by the Housing Board. The Project Administrator will provide a letter within five (5) business days indicating the outcome of the application request.  Page 13 of26    Town of Bedford Hilltop Community Revitalization Project-Phase 2 LOAN QUALIFVING A. Loan Terms  MAY202-4-Housing Program Design  Persons receiving assistance through the CDBG Housing Program must commit to a loan repayment schedule prior to signing a rehabilitation contract. Loans will be in the form of 100% forgivable loans paid in monthly installment payments. All monthly installment payments will be calculated at 0% interest for a period of five (5) years. Families may not pre-pay the loan. At the  end of the loan term, the lien will be lifted from the property.  B. Loan Servicing Agent  The Town of Bedford will service the CDBG loans. Loan servicing will be performed on a yearly basis and confirmation of all accounts made available to each property owner yearly. All loans will be secured by a Deed of Trust and a Promissory note. The Program Administrator will have the Deed of Trust recorded. When the term of the loan is met, the Town of Bedford appointed Loan Servicing Agent, will, on behalf of the Town release the lien. Once recorded, DHCD will not subordinate its position without its prior written approval. DHCD may consider subordination for the following reasons: to pay for a necessary medical procedure, finance post-secondary tuition, for a "no cash out" refinance  Securing Loans  that results in a lower monthly mortgage expenses to the owner.  D. Loan Servicing Plan  The Town of Bedford Finance Director, or his/her designee will serve as the CDBG Loan Servicing Agent for the Town. The Finance Director will be responsible for maintaining the financial records for any program income and loans through the CDBG program. CDBG rehab costs and payment information will be entered into the Town of Bedford database. The Town will make every effort to work with borrowers to prevent a default. The Loan Servicing Agent will contact the family at the first indication of a repayment problem. Payment schedules will be adjusted when necessary and referrals for budget counseling will Ifa borrower is in danger of default, and if the Loan Servicing Agent's efforts to help them with their budgeting does not remedy the situation, they will be asked to appear before the Housing Board to determine the problems and various methods of resolution. If no progress is made after the above step, the Town of Bedford will be made aware of the problem and determine the next course of action. If no other satisfactory solution can bet found, the deed of trust will be enforced through legal action. The borrower will then be responsible for repayment of all CDBG funds which remain unforgiven to that point.  - - Default Policy  be made when appropriate.  Page 14 of26    Town of Bedford Hilltop Community Revitalization Project-Phase 2 NON-OCCUPANCY  MAY2024-Housing Program Design  Int the case of non-occupancy" ofa a unit rehabilitated or reconstructed under the project, the unit will become property of the Town of Bedford unless an alternative outcome is negotiated in consultation with DHCD. Non-occupancy shall be defined as the intended beneficiary or beneficiaries not living in the unit for three (3) or more consecutive months for any reason. Alternative outcomes must be negotiated with the Owner, the Town of Bedford and DHCD and A. Cash payback of the remainder of the loan (both payment and forgiven amounts) B. Negotiation of a payment plan for payback of the loan, which may exceed the original five- Occupancy by an LMI owner, with payback dependent on the occupant's ability-to-pay. D. Occupancy by an LMI renter, with payback dependent on the occupant's ability-to-pay and the rental agreement in line with program requirements for investor-owned properties. Temporary relocation of occupants during construction may be necessary during this project. To receive board consideration, the circumstances for temporary relocation should be due to: 2) likelihood of lead paint and there exists danger to the occupants or there is no means for Each case will be presented to the Board with supporting documentation from the Rehab Specialist. In each case, the family will be asked to find temporary location options at their expense. If, however, this is not an option, the Town will provide a temporary location at a maximum of $2,000 per unit. Additionally, each family will be asked to arrange for the movement of furniture, etc. However, if the applicant is unable to physically assist, the Town can provide interim assistance. Each home will be reviewed on a case-by-case basis. No relocation assistance will be provided for meals or additional transportation costs associated with temporary relocation. In order to provide safe and sanitary housing for some project beneficiaries, permanent relocation may be necessary. If permanent relocation is deemed necessary if there is not a viable option for rehabilitation, and there is no land available in the project area, or the beneficiaries are found to need other living options not available in the project area or the greater Hilltop Community, CDBG funds may be utilized for the purposes of relocation, and they may be used outside of the project area. In all cases, relocation will be al last resort and all actions will adhere to DHCD guidelines as provided through the DHCD Grant Management Manual.  may include:  year period.  RELOCATION  The Housing Board shall approve temporary relocation assistance. 1) sever inconvenience to the homeowner due to construction; or  isolating construction area from residents.  HOME MAINTENANCE EDUCATION PROGRAM  Each family will attend al home maintenance class which will provide information on general maintenance of a home. Participation in the Home Maintenance Education will be a program requirement and included as a part of the contract with the beneficiary. The education may take the form of a class, attended by one or more families, or by an individual family consultation.  Page 15 of26    Town of Bedford Hilltop Community Revitalization Project-Phase 2  MAY2024-Housing Program Design  The home maintenance will include information on the mechanical systems such as heating, water, etc. The class will also provide tips and strategies for housekeeping, and lastly detailed information on budgeting and homeowners insurance. The Rehabilitation Specialist will provide the Home Maintenance portion of the Education Class and the Program Administrator will cover general house cleaning and budgeting elements of the Home Maintenance Education. Each family will receive a home cleaning kit and a home tool kit along with booklets explaining The Home Maintenance Program shall be provided through the funds available from the DHCD CIG and shall not exceed 1% of the base construction cost per unit or shall not exceed $250 for rehab or substantial reconstruction. Documentation, such as sign-in sheets and receipts of purchases, will be submitted to DHCD for verification of program compliance.  various facets of home maintenance.  CONTRACTING PROCEDURES  The following process will be used in bidding and determining contract awards. All contract  procedures will adhere to the Virginia Public Procurement Act.  A. Solicitation of Contractors  The Town of Bedford will solicit contractor participation through advertisement, contact with local Building Official, notices at building supply companies, and direct contact with known  contractors from other CDBG projects. B. Contractor Pre-qualification  All contractors responding must complete a pre-qualification form. The Rehabilitation Specialist will check references for workmanship and credit and will verify insurance and license  requirements.  All contractors will have a minimum:  Licensed by the Department of Professional and Occupational Regulation as a Class A, Class B, or Class C and licensed in the appropriate trades to be included Documented current liability insurance coverage of $100,000 property and $300,000 personal injury (minimum). Proof of insurance will be kept and maintained by the Either be bonded or show proof of adequate credit as to not be bonded for the rehab Bidding - the following process will be followed in all bidding associated with the housing All certified contractors shall receive bid specifications for each) job. Prior to providing bid specs, rehabilitation cost estimates are available to compare estimated Ar mandatory pre-bid conference will be held for each bid process to explain and answer any work write-up elements (these write-ups have had prior approval by the  Program Administrator  work program.  construction cost with bid price.  homeowner).  Page 16 of26    Town of Bedford. Hilltop Community Revitalization Projeci-Phase 2  MAY202--Housing Program Design  Homes will be bid on in groups of 3-5, as applicable. bid deadline in which to submit bids.  Contractors shall have at least 7-10 days between receipt of specification and Any bid that is within 10% of the Rehabilitation Specialist estimate is eligible for consideration; the Town does not have to choose the lowest bid The Rehabilitation Specialist will provide suggestions on the most appropriate The Town of Bedford has the right to reject any and all bids.  bid award.  D. Contractors and Contracts  Each contractor generally will be allowed to have no more than three (3) active rehab contracts within the project area at any given time. At the discretion of the Housing Board, a contractor may, through past performance or written proof of financial and staff capability, One unit per contract and each contract must be completed within sixty (60) days for Housing Rehabilitation projects and within 90 days for Substantial Reconstruction projects.  have more than three (3) active contracts.  Rehabilitation contracts must include wording or provisions to include:  Work specifications Contract amount  Proof of lead-based paint certification Abide by Federal Equal Opportunity standards  CONSTRUCTION MANAGEMENT  A. Initial Inspection The initial HQS inspection will be performed by the Program Administrator during the application process. Once the family is determined to be eligible, the Housing Rehab Specialist will conduct a second HQS inspection. The two inspections B. Construction Inspection - The Rehabilitation Specialist, or designated staff, will perform weekly inspections. Ani inspection report will be developed for each inspection. The Housing Specialist will inspect and approve work for any pay request. The Town Building Inspector, Rehabilitation Specialist, Homeowner, and Program Administrator must approve work prior to final payment. The Program Administrator will conduct an HQS inspection at the completion of all work. The Town building inspector will  will be the basis for the work write- up.  make his/her final inspection separately.  Payment Procedures  Payments will be made to the contractor as follows; 10% start-up funds, and then at the satisfactory completion (as approved by rehab specialist, program administrator and homeowner) of 50%, 95% and 100% of the work. Payment may be made sooner Payments made to the contractor will be from an account maintained by the Town,  at the discretion of the Program Manager.  Page 17of26    Town of Bedford. Hilltop Community Revitalization Project-Phase 2  MAY2024-Housing Program Design  Are retainage equivalent to 5% of the contract award will be held until the homeowner/occupant, program administrator, Rehab Specialist, and the local building official have visited the home, reviewed, and documented completion of all punch list items (reviews at 95% completion), and have found work to be satisfactory At the time of the first draw, the following documentation is required:  and the premises is clean of all contracting evidence.  1. Payment request 2. Inspection report 3. Building Permit 4. Termite Inspection 1. Payment request 2. Homeowner satisfaction 3. Register of Assigned Employees 4. Register of Subcontractors and Suppliers 5. Release of Liens 6. Certificate of Ocupancy/Approved Town Inspection 7. Copies of Warranties  At time of the final draw, the following documentation is required:  D. Change Orders  The Rehabilitation Specialist will initiate all change orders. All Change Orders must be approved in writing by the Program Administrator, DHCD, Rehab Specialist, and the  homeowner prior to any work taking place.  . Construction Assurances  All work will be in accordance with DHCD's Field Interpretation Guidelines and, unless provided through Housing Board action (see Program Eligibility Requirements D), all All work and materials shall be in conformance with design plans and specifications. All work and materials whether installed by the general contractor or his subcontractors shall not carry a lien upon the property. The general contractor shall be totally responsible for materials and workmanship of his subcontractors including The rehab specialist will perform weekly inspections of work. Written documentation The rehab specialist will be consulted whenever there is a question concerning work or  DHCD HQS violations will be addressed All work and materials shall carry a one-year warranty  cleanup.  oft these inspections will be provided for files. when questions arise from the homeowner  F. Participant Rights and Responsibilities Town/Project Administrator  Assure that all applications are processed according to procedure, with in a timely Assure that all contracts and payments are prepared and provided according to  fashion, and response is provided  Assure that contractors are procured for construction work  Page 18 of26    Town of Bedford Hilltop Community Revitalization Project-Phase 2  MAY2024-Housing Program Design  Housing Program Design  Provide a voucher to contractors for the waiver of disposal fees, if approved by the Must attend pre-construction conference and agree to scope and extent of work performed. The homeowner will not engage in any changes in scope of work in the At least one person from each home must attend a Home Maintenance Education Homeowner will sign all releases immediately upon acceptable completion of work Should the homeowner have a grievance against the contractor, or concerning workmanship, such complaint shall be taken to the Rehabilitation Specialist or Project Homeowners have the right to pick stock color of paint, and choice of allowable Occupant shall provide electric power, and access to water and sanitary facilities, Must remove any items from the room/home that will be in the way of the When able, the homeowner will be responsible for removing exterior debris prior to signing contracts. Ifnot able, the removal of debris will be provided through a All work is to be carried out in a manner consistent with professionals engaged in the same occupation and utilizing materials of specified grade or better Contractors must attend the final inspection. All work noted on a punch list and present to the contractor shall be agreed to by Rehab Specialist, Program Administrator, Homeowner and Contractor. Punch list items are to be completed by a Must have all change orders approved in writing prior to any work All material and workmanship shall be warranted for one year by the contractor from the date of sign Construction Satisfaction Statement by the homeowner At the end of each working day, contractors will, as far as reasonably possible, clear Atend of all work items, all work areas will be completely cleaned, cleared, and restored. Contractors will be responsible for hauling away all debris resulting from  locality Homeowner  contract. class. items  Administrator fixtures and materials as available for the contractor  construction separate contract Contractor  designated date.  work area of debris and remove tools  rehabilitation work G. Lead Base Paint Procedures  All rehab construction projects built prior to 1978 will be governed by the new lead regulation as they relate to DHCD. An independent inspection of a unit will be conducted by the Rehab Specialist who must be certified/licensed by DPOR as a lead inspector and risk  assessor.  Page 19 of26    Town of Bedford Hilltop Community Revitalization Project-Phase. 2  MAY2024-Housing Program Design  Ifno failing paint condition is noted, and no work will be conducted that will disturb more than two (2) square feet of a painted surface, this is documented, and no further lead Ifai failing paint condition is noted, and the house was built prior to 1978, the Rehab Specialist and the Program Administrator will assume that the failing paint is lead paint. This  requirements apply.  will trigger the following requirements:  The work write-up incorporates "interim controls"  The contractor and crew awarded job, to the best of their ability, shall be trained in lead The area(s) is which potential lead-disturbing work occurred must be thoroughly cleaned Att the completion of work, the Rehab Specialist must complete appropriate dust sampling if result is positive for lead another cleaning will be required at contractor's expense  safe work practices  COMPLAINT AND APPEALS PRECEDURES  The following procedures will be used in dealing with complaints, disputes and appeals to  program denial.  Denial of applicant to program-  Persons whose ehabilitation/program applications have been denied will be notified in writing with an explanation of denial. The applicant has sixty (60) days from receipt of denial letter to appeal the decision to the Housing Board. It shall be the responsibility of the Program Administrator to coordinate the review process with the Board and in relaying all information, The order of denial appeals is as follows: to Program Administrator, to Housing Board, to DHCD,  letters, etc. to the courts.  Construction Appeals/Complaints-  Should the homeowner have a grievance against a contractor or concerning workmanship of any rehab elements in the home, such complaint should be taken first to the Rehabilitation Specialist, then the Program Administer. All written appeals or complaints shall be responded to within 15 Int the rare instance that construction disputes cannot be resolved by the Rehabilitation Specialist and Program Administrator, the Housing Board will be asked to mitigate the dispute. Ifwarranted, a mediation committee will be formed consisting of a representative from the homeowner and contractor, a member of the Housing Board and as a last resorta representative from DHCD. The decision obtained by this mediation committee shall be final. Details of the complaint procedure will be clearly outlined in all contractual materials.  days by the Program Administrator.  CONFLICT OF INTEREST POLICY  No work can be done on the property of any person, or his/her immediate family, who has or had decision-making power in the CDBG program from the time the application was planned,  Page 20 of 26    Town of Bedford Hilltop Community Revitalization Project-Phase 2  MAY2024-Housing Program Design  developed, and submitted to DHCD to the grant's execution and implementation without DHCD's prior written approval regardless of any prior approval of a Program Design. This includes any elected and appointed officials, Grantee employees, Project Management Team, and Housing Board members, in accordance with Virginia and federal conflict of interest Furthermore, no construction contract can be awarded to any person, or his/her immediate family, who has or had any decision-making power in this project. This includes an elected and appointed official, Grantee employees, and Housing Board members. The Town will notify DHCD, in writing as soon as it perceives that a potential conflict of interest exists.  requirements.  APPLICABLE LAWS, ORDINANCES AND REGULATIONS  Notwithstanding the provisions of the Program Design, all Federal, State, and Local laws, ordinances, and regulations shall strictly apply to the project. Any portion of this Program Design found to be inconsistent or incompatible with the applicable laws, ordinances, or regulations shall be deemed to be severed from the Program Design without effect to the Bedford Town Council may amend this Program Design as necessary and appropriate to ensure compatibility and compliance with all applicable laws, ordinances, and regulations. This section shall apply also to all contractual obligations stemming from the Virginia Community Development Block Grant agreement between the Town of Bedford and the Commonwealth of  remaining provisions.  Virginia.  FAIR HOUSING AND NON-DISCRIMINATION elderliness, familial status, or handicap. REVISIONS TO THE PROGRAM DESIGN  This project shall be implemented to encourage fair housing opportunities for all persons and without discrimination against any person based on race, color, sex, religion, national origin,  Because the Program Design is an official contract document, all major revisions will be reviewed and approved by DHCD and amended by formal action by the local governing body afterwards.  Page 21 of 26    Town of Bedford Hilltop Community Revitalization Project-Phase 2  MAY2024-Housing Program Design  CERTIFICATE OF ADOPTION AND AMENDMENT  The foregoing Housing Program Design to guide the Hilltop Community Revitalization Project- Phase 2 in the Town of Bedford was adopted by the Bedford Town Council at a regularly held  meeting. ADOPTED THIS  DAYOF.  2024.  Bedford Town Council, Mayor  Attest:  Page 22 of26    Town of Bedford Hilltop Community Revitalization Project-Phase 2  MAY202--Housing Program Design  EXHIBIT A  HI HDVEE  FY2 2023 INCOME LIMITS DOCUMENTATION SYSTEM HUP.goy HUD Vser Home Datas Sets Fair Market Rents Section 81 Income Umits MTSP Income Limits MUDLIHTCDatabase  FY 2023 Income Limits Summary  FY2023 Median Famlly Income FY2 2023 Income Umit  Persons in Family 4 5  Income Limit Area  Click for) More Detail  Category Very Low (50%) Income Limits ($) Click for More Detail Extremely Low Income Lmits ($)* Click for More Detail Low (80%) Income Limits ($) Click for More Detail  1 2 3  7 8  29,050 33,200 37,350 41,500 44,850 48,150 51,500 54,800 17,450 19,950 24,860 30,000 35,140 40,280 45,420 50,560 46,500 53,150 59,800 66,400 71,750 77,050 82,350 87,650  Lynchburg, VAMSA  $83,000  NOTE: Bedford County is part of the Lynchburg, VAI MSA, 50 alli information presented here applies to all of the Lynchburg, VA MSA. The Lynchburg, VAI MSA contains the following areas: Amherst County, VA; Appomattox County, VA; Bedford County, VA; Campbell  County, VA; and Lynchburg city, VA.  Page 23 of2 26    Town of Bedford Hilltop Communily Revitalization Project-Phase 2  MAY2024-Housing Program Design  EXHIBIT B  Housing Rehabilitation Allowable Costs  CDBG  Increase in costs due to COVID  Rehab Specialist Fee 10% of const. cost  Activity  Rehab  CDBG Rehab Post 1978 CDBG Rehab Pre 1978 *must include lead abatement CDBG Rehab Substantial Reconstruction  $125,000  10%  $125,000  10%  10%  $150,000 Additional $10,000 1.200  10% Additional $10,000 NA  10%  Alternative septic  NA NA  Lead Inspection/Risk. Assessment  All pre-1978 units will include LBR testing and abatementhazard, reduction. Iti is assumed that project costs will exceed $25,000. This is an exception to the allowable limits in the chart above. Manufactured home rehabilitation is limited to $10,000, plus $10,000 for exceptions for water Grantees with an open CDBG contract may request in writing to DHCD an increase in assistance for housing-related activities assistance up to the current Housing Rehabilitation  and wastewater. No other exceptions apply.  Cost Limits.  Page 24 of26    Town of Bedford. Hilltop Community Revitalization Project-Phase. 2  MAY2024-Housing Program Design  EXHIBITC  Raipn S Notnsm Governor R BnanBatl Secroary ol Commerce and Trade MEMORANDUM TO: FROM:  COMMONWEALTH of VIRGINIA HOUSING AND COMMUNITY DEVELOPMENT  EnkC Drecior Johnsion  DEPARTMENT OF  Community Development Block Grant Recipients, and IPR Flex Program Grantees  and Regional Administrators Amanda Healy Associate Director May27,2021  SUBJECT: Housing Rehabilitation Loan Forgiveness  DATE:  Our agency is making a change in policy for all monthly home improvement loan payments for work funded by CDBG or IPR to be completely) forgiven. This policy applics to all past, current and future Please contact the Community Development Spccialist assigned to work with your project ifthere are  home improvement loans until further notice.  questions or comments. c: Jay Grant, DHCD Pam Kestner, DHCD Tonya Thomas, DHCD Matt Weaver, DHCD  Stay safe and let us know how we can help you continue to move forward.  Portnors lor Bolter Communtes  www.dhcdwphno gov Fax (3041 371-7000 Vigna Rolay 1.1-1  Mains Sueel Ceree* 600East Mans Sveet Sute 300. Rchmond. Virgnla 23219 Phone (04)  Page 25 of2 26    Town of Bedford Hilltop Community Revitalization Project-Phase 2  MAY2024-Housing Program Design  EXHIBIT D  PROJECT AREA Phase2  Town of Bedford Hilltop Community Revitalization Project 2023  040 041 042 043  ara  018  or2  urces Esri, HERE. Garmin, USGS AMITAPINCREMENTE NRCan. EenJapay MenEriChine gKong, EvIk Korea. Esr(Thaishd). NGCCReOps/uss oontnbutors and the GIS Usek  Page 26 of26    Notice ofLead-Based Paint Presumption  Town of Bedford Hilltop Community Revitalization Project-Phase 2 CDBG #23-23-07 The Town ofl Bedford (Town) is the recipient ofai federally funded Community Improvement Grant provided through Community Development Block Grant (CDBG) funds which are distributed and administered by the Commonwealth of Virginia. This grant funding is intended to be used for housing rehabilitation assistance which may include activities on homes built prior The U.S. Department of Housing and Urban Development's (HUD) Lead Safe Housing Rule, found as 24 CFR35, covers all pre-1978 structures which are federally assisted housing The Town, as the Grantee, or designated party, is responsible for complying with applicable requirements of24 CFR35. For this purpose, the Town ". has the option to presume that lead- based paint or lead-based paint hazards, or both are present throughout the residential property." (24CFR $35.120) In such a case where the presumption oflead-based paint is made, an evaluation (risk assessment, lead hazard screening, lead-based paint inspection, etc.) isr not required. This saves time and expense as standard treatments for lead-hazard reduction are conducted in accordance with 34 CFR $35.1335 on all applicable surfaces and in all cases. Additionally, the Town as the Grantee, is required to provide occupants of housing where rehabilitation/removation activities will be conducted with two documents. The first being the Notice ofLead-Based Paint Presumption in accordance with 34 CFR $35.125 and the second being the lead hazard information pamphlet developed by the EPA in accordance with 40 CFR $754.84, no more than 60 days before beginning renovation activities in that residential unit. Recommendation: That the Bedford Town Council elect to presume that all painted surfaces are coated with lead-based paint for the purpose of complying with HUD Regulation 24 CFR: 35 in conducting housing rehabilitation assistance activities as required per the DHCD Agreement for the Town of] Bedford Hilltop Community Revitalization Project-Phase 2 CDBG #23-23-07.  to 1978.  rehabilitation.    Non-Discrimination Policy Town ofBedford, Virginia  The Town of Bedford or any employee thereofwill not discriminate against an employee or applicant for employment because ofrace, color, religion, national origin, sex, pregnancy, childbirth or related medical conditions, age, marital status, or disability. Administrative and personnel officials will take affirmative action to ensure that this policy shall include, but not be limited, to the following: employment, upgrading, demotion or transfer; rates ofpay or other forms of compensation; and selection for training.  Duly adopted at the regular meeting oft the Bedford Town Council on  2024.  Signature of Authorized Official  Date    NOTICE OFI LEAD-BASED PAINT PRESUMPTION Hilltop Community Revitalization Project-Phase2  Town of Bedford CDBG23-23-07  In compliance with Section 25.125 of the Department of Housing and Urban Development's (HUD) regulation 24 CFR 35, effective May 28, 2024, the Town of Bedford Town Council elected to presume that allj painted surfaces are coated with lead-based paint. The nature and scope oft the presumptions made  iso outlined below:  The home was constructed prior to 1978.  Printedi name ofr recipient Address of property  Delivery date or date of posting and time (common where notice shall be posted)  Printed name ofp person delivering or posting this notice Signature of person delivering or posting this notice  Signature of recipient, ifdelivered  Resident refused to accept and sign this notification.  Resident was unavailable for signature; therefore, the notice was placed:  Under the unit door; In the occupant'st mailbox; Other:  For more information about the presumptions made, please contact:  Jefrado Granger, Grant Manager Central Virginia Planning District Commission 828 Main Street, 12th Floor Lynchburg, VA 24504 (434)818-7608    Residential Anti-Displacement and Relocation  Assistance Plan Certification Town of Bedford, Virginia  The Town of Bedford will replace all occupied and vacant occupiable low/moderate-income dwelling units demolished or converted to a use other than as low/moderate income dwelling unit as a direct result of activities assisted with funds provided under the Housing and Community Development Act of1974, as amended. All replacement housing will be provided within three (3) years of the commencement of the demolition or rehabilitation relating to conversion. Before obligating or expending funds that will directly result in such demolition or conversion, the Town of Bedford will make public and advise the state thati it is undertaking such an activity  and will submit to the state, in writing, information that identifies:  1. 2. 3. 4. 5. 6. 7.  A description of the proposed assisted activity.  The general location on a map and approximate number of dwelling units by size (number ofbedrooms) that will be demolished or converted to a use other than as low/moderate-income dwelling units as a direct result of the assisted activity. A time schedule for the commencement. and completion oft the demolition or The general location on a map and approximate number of dwelling units by size (number ofb bedrooms) that will be provided as replacement dwelling units. The source of funding and a time schedule for the provision of replacement dwelling The basis for concluding that each replacement dwelling unit will remain a low/moderate-ncome dwelling unit for at least 10 years from the date ofinitial Information demonstrating that any proposed replacement of dwelling units with smaller dwelling units is consistent with the housing needs oflow- and moderate-  conversion. units. occupancy.  income households in the jurisdiction.  The Town of Bedford will provide relocation assistance to each low/moderate -income household displace by the demolition ofh housing or by the direct result of assisted activities. Such assistance shall be that provided under Section 104 (d)ofthe. Housing and Community Development Act of1974, as amended, or the Uniform Relocation Assistance and Real Property  Acquisition Policies Act of1970, as amended.  The Town of Bedford's FY23-24 project includes the following activities:  Rehabilitation ofl 11 LMI owner-occupied homes to the HUD Housing Quality Standard,  as follows:  11homes to be brought from substandard to HUD HQS  Ofwhich 51 homes are occupied by elderly  Ofwhich 2 homes are occupied with children under 12 years of fage.  7h homes will be following lead safe housing rules (24 CFR part 35)    2replacement homes will be of universal design.  The activities as planned will not cause any displacement from or conversion of occupiable structures. As planned, the project calls for the use of existing right-of-way or easements to be purchased or the acquisition oftracts ofland that do not contain housing. The Town of Bedford will work with the grant management staff, engineers, project area residents, and the Department of Housing and Community Development to ensure that any changes in project activities do not In all cases, an occupiable structure will be defined as a dwelling that meets local building codes  cause any displacement from or conversion of occupiable structures. ora dwelling that can be rehabilitated to meet code for $25,000 or less.  Duly adopted at the regular meeting oft the Bedford Town Council on  2024.  Signature of Authorized Official  Date    Section 3-1 Business and Employment Plan  Town of Bedford, Virginia  1. 2.  The Town of Bedford designates as its Section 3 Business and Employment Project The Town of Bedford, its contractors, and designated third parties shall in utilizing Community Development Block Grant (CDBG) funds utilize businesses and lower income residents of the County in carrying out all activities, to the greatest extent 3. Ina awarding contracts for construction, non-construction, materials, and supplies the Town of Bedford, its contractors, and designated third parties shall take the following steps to utilize businesses which are located in or owned in substantial part by persons a. The Town of Bedford shall identify the contracts required to conduct the CDBG b. The Town of Bedford shall identify through various and appropriate sources including the Bedford Bulletin (Local Newspaper of General Circulation), posted notices, and direct written or verbal contact, the business concerns within the County which are likely to provide construction contracts, non-construction contracts, materials, and services which will be utilized in the activities funded The identified contractors and suppliers shall be included on bid lists used to obtain bids, quotes or proposals for work or procurement contraçts which utilize d. To the greatest extent feasible the identified business and any other project area business concerns shall be utilized in activities which are funded with CDBG The Town of Bedford and its contractors and subcontractors shall take the following steps to encourage the hiring of lower income persons residing in the County: a. The Town of Bedford in consultation with its contractors (including design professionals) shall ascertain the types and number of] positions for both trainees and employees which are likely to be used to conduct CDBG activities. b. The Town of Bedford shall advertise through the following sources the availability ofsuch positions with the information on how to apply.  Area the County ofBedford, Virginia.  feasible.  residing in the County: activities.  through the CDBG. CDBG funds. funds.  4.  Bedford Bulletin (Project Area Newspaper of General Circulation) Posting at the' Town of Bedford municipal building The Town of Bedford, its contractors, and subcontractors shall be required to maintain ai record ofi inquiries and applications by project area residents who    respond to advertisements and shall maintain a record of the status ofs such d. Tot the greatest extent feasible, the Town of Bedford, its contractors, and subcontractors shall hire lower income project area residents in filling training and employment positions necessary for implementing activities funded by the In order to document compliance with the above affirmative actions and Section 3 of the Housing and Community Development. Acto of1974, as amended, the Town of Bedford shall keep, and obtain from its contractors and subcontractors, Registers of Contractors, Subcontractors and Suppliers and Registers of Assigned Employees for all activities funded by the CDBG. Such listings shall be completed and shall be verified by site visits and employee interviews, crosschecking of payroll reports and  inquires and applications.  Community Development Block Grant (CDBG).  5.  invoices, and through audits if necessary. Duly adopted at the regular meeting ofthe Bedford Town Council on  2024.  Signature of Authorized Official  Date    Grievance Procedure Town ofBedford, Virginia  The Town of Bedford has adopted an internal grievance procedure providing for prompt and equitable resolution of complaints alleging any action prohibited by the Department ofl Housing and Urban Development's (HUD) (24 CFR 8.53(b) implementing Section 504 ofthe Section 504 states, inj part, that "no otherwise qualified handicapped individual.. shall solely by reason ofhis handicap, be excluded from the participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving  Rehabilitation Act of1973, as amended (29 USC 794).  federal finançial assistance..."  Complaints should be addressed to: Mary Zirkle, Director of Community Development, Town of Bedford, 215 East Main Street, Bedford, VA 24523, Phone; (540) 587-6006, who has been 1. A complaint should be filed in writing or verbally contain the: name and address of the person filing it, and briefly describe the alleged violation oft the regulations. 2. A complaint should be filed within 10 days after the complainant becomes aware of the alleged violation. (Processing of allegations of discrimination occurring before this grievance procedure was in place will be considered on a case-by-case basis.) 3. An investigation, as may be appropriate, shall follow a filing ofa complaint. The investigation will be conducted by Mary Zirkle, Director of Community Development, Town of Bedford. These rules contemplate informal but thorough investigations, affording all interested persons and their representatives, ifany, an opportunity to submit evidence relevant to a complaint. Under 24 CFR 8.53(b), the Town of Bedford need not process complaints from applicants for employment or from applicants for admission to 4. A written determination as to the validity of the complaint and description of resolution, ifany, shall bei issued by Mary Zirkle, Director of Community Development, Town of Bedford, and a copy forwarded to the complainant no later than 21 days after its filing. 5. The Section 504 coordinator shall maintain the files and records of the Town of Bedford 6. The complainant can request a reconsideration of the case in instances where he or she is dissatisfied with the resolution. The request for reconsideration should be made within 10 days to Mary Zirkle, Director of Community Development, Town of Bedford. 7. The right ofa aj person to a prompt and equitable resolution of the complaint filed hereunder shall not be impaired by the person's pursuit of other remedies such as the  designated to coordinate Section 504 compliance efforts.  housing.  relating to the complaints filed.    filing ofa Section 504 complaint with the Department of Housing and Urban Development. Utilization ofthis grievance procedure is not aj prerequisite to the pursuit 8. These rules shall be construed to protect the substantive rights ofinterested persons, to meet appropriate due process standards and to assure that the Town of Bedford complies  ofother remedies.  with Section 504 and the HUD regulations.  Duly adopted at the regular meeting oft the Bedford Town Council on  2024.  Signature of Authorized Official  Date    PROGRAM INCOME PLAN  Subrecipient: Town of Bedford Contract#: #23-23-07 OBJECTIVE  Date:  May: 28, 2024  Project Title: Hilltop Community Revitalization Project (Phase 2)  To guide the expenditure of active and inactive program income by the Town of Bedford (Town) generated from the Hilltop Community Revitalization Project, a Targeted Housing Community Development Block Grant (CDBG) project to advance communtymprovements to residents  within the Town of Bedford Hilltop community. TYPES OF PROGRAM INCOME  The following outlines the use of CDBG Program Income, or program generated funds, for the Hilltop Community Revitalization Project-Phase 2. All Program Income will be tracked and  recorded by the Town of Bedford. 1. Active CDBG Program Income:  Defined: Income or revenue received, such as loan repayments, generated from the project Uses: Active Program Income may be used for eligible project costs more than the Project Budget with DHCD permission. Active Program Income will be used for the same activities as approved by the CDBG Agreement. Active Income on-hand at the end ofa project will  prior to administrative closeout of the CDBG agreement.  be used to reduce the final remittance or returned to DHCD.  2. Miscellaneous Revenue:  Defined: Miscellaneous revenue is all revenue received in a 12-month reporting period (July 1-June 30) that is less than $35,000 from an administratively closed project funded through the CDBG program. Income or revenue received after closeout of the Town of Bedford's CDBG project; the Town of Bedford will utilize these funds for specific activities It should be noted that all Hilltop Community Project-Phase 2 Program Income, either Active or Inactive will only be spent ini the Town of Bedford, providingpriority to the Hilltop  outlined in this document.  Community specifically.  1of5  Town of Bedford-F Program Income Plan Hilltop Community Revtalization-Phase2CDB623-23-07    TOWN OF BEDFORD PROGRAM INCOME ELIGIBLE ACTIVITIES  The Town of Bedford will utilize program activity funds generated from the Hilltop Community Revitalization Project-Phase 21 for the following activities. Items denoted with an (*) are specifically for the utilization of Active Program income and intended for use only within the Hilltop Community Revitalization Phase 2 Project Area. All other activities are eligible for either Active or Inactive Program Income and may be used within the Hilltop Community.  (*) Provide additional funds towards the rehabilitation of homes that exceed the (*) Provide for the payment of change orders on homes that are being rehabilitated Provide loans at 0% interest, repayable based on the beneficiary's ability-to-pay,to assist with housing rehabilitation and substantial reconstruction of unit. Create homeownership through the development of housing. Provide assistance for homeownership creation, including assistance with down payment (with! 50/50 match), reasonable closing cost, principal assistance or mortgage Assist with costs associated with demolition and clearance/debris removal within the Payment of 1st, year of homeowner's insurance (Hazard) or assistance with general Emergency repairs such as well, septic, wheelchair ramps, etc. Repayment assistance to existing loans to provide relief where, because of unanticipated circumstances: a homeowner would face extreme financial hardship in making loan payments. This assistance is available for three payments, after which time, areassessment by the Housing Board may extend payment assistance. Provide funds to be used to match any Town applications that result in direct benefit to the Hilltop Community, such as trail or park development. Assist with legal costs associated with Deed clearance or land purchase that will result in blight removal, demolition, or home purchase for LMI households within the Hilltop  $25,000 base cost limits.  where the cost will exceed the $25,000 base limit.  insurance.  Hilltop Community Phase 2 Project Area. Hazard Insurance for LMI residents.  Community.  The Town of Bedford may utilize inactive program income to:  1. 2.  Fund administrative costs of up to 10% of the expended program income may be Use up to $5 per loan per month as a service fee to offset the costs of loan  allocated for administrative purposes.  collection; and  2of5  Town of Bedford - Program Income Plan Hilltop Community Revitalization-Phase 2CDBG23-23-07    Program Income will be used by the project for actual administrative costs (loan servicing, rehabilitation assessment costs, general program oversight) associated with use of Program  Income. TIME FRAME  The Town of Bedford Hilltop Community Revitalization Project-Phase 2isar multi-year project and will runt for a total of twenty-four (24) months. Program Income generated by this project may be derived from the sale of a home that received a direct benefit prior to the expiration, or  satisfaction oft the loan. PROJECT AREA  The Town of Bedford Program Income associated with the Hilltop Community Revitalization Project (Phase 2) is to be utilized exclusively within the Hilltop Community, the geographic area roughly defined by the area located between West King Street to the north and Liberty Street to the  south and contained by Crenshaw Street to the west and Edmund Street to the east. The following participants are eligible to utilize CDBG Program Income funds:  ELIGIBLE PARTICIPANTS  LMI owners of single-family residences LMI tenants livingi ini the Hilltop Community LMI owners of mobile homes built after 1978 LMI persons with life-estate rights  Organizations, churches, or community groups within the Hilltop Community who will bei involved in clean up; beautification; or community activities that benefit the entire The Town of Bedford may utilize the funds to provide infrastructure, cleaning, or general community maintenance within the Hilltop community as defined in above. Distribution of Program Income funds will be paid directly to contractors, vendors, and suppliers only. No funds will be provided directly to any individual beneficiary. Active Program Income funds may be used by any LMI family or approved activity within the Hilltop Community Revitalization Phase 2 Project Area only, unless use outside the project boundary is authorized by DHCD. Inactive Income may be used by any income eligible Hilltop Community resident towards any of the activities outlined within this Income Plan. Additionally, any approved community organization or the Town may utilize funds to provide  Hilltop Community, and  for eligible program activities.  3of5  Town of Bedford - Program Income Plan Hilltop Community Revitalization-Phase 20 CDBG23-23-07    TRACKING PROGRAM INCOME  Active Program Income: The Town of Bedford will hold all Active Program Income in an interest- bearing account and shown individually on al balance sheet by the Bedford Town Finance Director or appointed designee. The Active Program Income will be tracked on a yearly basis. Alli income will be tracked according to the generation of funds, the date the funds were IfA Active Program Income is less than $35,000 in a given project year it does not have to be expended immediately. Should the Town generate Active Program Income that does exceed $35,000 in any given year it must be spent immediately on approved activities to reducea Inactive Program Income: The Town of Bedford will hold all Inactive Program Income in an interest- bearing account. Should the Town generate more than $35,000 in any given year it will  earned and any expenditure of funds.  future remittance.  be immediately returned to DHCD. FUNDS AVAILABLE  I.E Estimated Total Projected Program Income:  Based on the Town of Bedford's Housing Policy, every family that receives assistance will not be required to payi for housing assistance. Therefore, the amount of Program Income that will be  earned, with eleven homes receiving assistance is to be determined.  2. #ofYears until Payback Complete:  The term of the loan is five years from the month that rehabilitation services are completed on aproject. Based on Town of Bedford's Housing Program Design and the Project Timelines in the Town's Project Management Plan, all loans will expire in the year 2028.  DECISION MAKING  The Town of Bedford's Housing Rehabilitation Board will approve and track all applications, expenditures and contracts associated with use of Program Income funds. The Housing Board will review applications which have been taken by the Project Administrator in a manner consistent with the approved Housing Program Design. All requests for assistance will be reviewed as needed during Housing Board meetings. A majority vote will be required to The Town of Bedford Town Council will receive al bi-annual accounting of the expenditure of  approve the use of Program Income funds.  Program Income Funds.  4of5  Town of Bedford- - Program Income Plan Hilltop Community Revitalization Phase 20 CDBG23-23-07    ADMINISTRATION  The Town of Bedford Finance Director will manage all CDBG-program generated Program Income. The Finance Director, or a designated Finance Department employee, will be responsible for receiving direct loan payments. The funds will be deposited in an interest- bearing escrow account and identified by revenue or expenditure. Funds will be accounted for separately on the Town of Bedford balance sheet. Any lump sum receipt of Inactive Program Income of $35,000 or more during a state fiscal year (July 1-J June 30) will be reported to DHCD Records will be kept on a twelve-month contract year basis. Records will show that amounts due and received monthly by client's name, separated by active/inactive, and the income expended annually. Copies of source documentation will be available for each client and full The Town of Bedford, in tracking all Program Income, will implement activities in accordance with the Project Management Plan, the Program Design and the DHCD Grant Management Manual. The Virginia Procurement Act will be followed. The Town of Bedford Housing  at the time it is received and transmitted to DHCD within 60 days.  program funding.  Rehabilitation Board will ensure compliance. CERTIFIÇATION AND SIGNATURE  Icertify that this is the Program Income Plan oft this locality and details the use of income derived from the Community Development Block Grant Program. Ifurther certify that the Board fully intends to carry out this plan, to oversee its implementation and assures that no Icertify that this locality will budget Program Income funds in a separate, distinct account and will maintain records documenting the use of such funding. lunderstand that the Virginia Department of Housing and Community Development may review the receipt and expenditure  other use of these funds will be permitted.  of Program Income funds at any time during normal business hours.  Bart Warner, Town Manager Town of Bedford, Virginia  Date  5of5  Town of Bedford - Program Income Plan Hilltop Community Revitalization-Phase 2 CDBG 23-23-07    MEMORANDUM OF UNDERSTANDING  This memorandum of understanding ("MOU") is made as of the day of May, 2024, by and between the Town of Bedford, Virginia, a Virginia municipal corporation (the "Town"), and the Town of Bedford Redevelopment and Housing Authority, a political subdivision oft the Commonwealth of Virginia  (the"Authority"). For their understanding, the Town and the Authority state:  Recitals  WHEREAS, the' Town has been awarded a Community Development Block Grant (the "CDBG") by the Virginia Department of Housing and Community Development ("DHCD"), as memorialized in that  certain Agreement between DHCD and the Town, Contract 23-23-07, dated as of  and  WHEREAS, among the purposes of the CDBG is rehabilitation of private property, to serve the public health, safety, and general welfare. Following rehabilitation, the cost of the rehabilitation becomes a lien against the property, memorialized by a promissory note and a deed of trust, subject to partial or  complete forgiveness if certain criteria are: met; and  WHEREAS, the Town is authorized by Section 15.2-956 of the Code of Virginia, 1950, as amended, to participate in and take such actions as may be necessary to administer the CDBG, except as may be inconsistent with the Virginia Constitution, and wishes to cooperate with the. Authority to carry out  the CDBG; and  WHEREAS, the Authority is authorized to use its corporate powers for the purpose of administering community development block grants and other federally-funded redevelopment projects  under Sections 36-19 and 36-26 of the Code of Virginia, 1950, as amended; and  WHEREAS, the Town and the Authority propose to enter an arrangement whereby the Authority administers certain financial and contractual arrangements relating to the CDBG in cooperation with the  Town's administration of the CDBG.  Witnesseth  Now therefore, the Town and the Authority agree as follows:  1.  The Town, either through its own forces or in cooperation with the Central Virginia  Planning District Commission (CVPDC), will provide for construction, reconstruction, and rehabilitation work to be done on private property under the terms of the CDBG. Contracts will be entered in the name of the Authority; however, in all cases, it is the responsibility of the Town to administer the contracts on  behalf of the Authority as the Authority's fiscal agent.  2.  The Town, by and through its Finance Department and in its role as fiscal agent, will  provide to the. Authority a certification of the amount the property owner owes for the work done under the CDBG program. The Authority will promptly execute a promissory note (the "Note-"), using a form  100426555. DOCX 1  1    substantially the same as the one attached hereto as Exhibit A. It will then cause to be recorded a deed of trust (the "Deed ofTrust"), using a form substantially the same as the one attached hereto as Exhibit B. The Town will make the Town Attorney available to act as Trustee for the Deed ofTrust.  3.  The Town, as fiscal agent for the Authority, will undertake the receipt and accounting of  the funds received under the Note, and the status thereof, and provide the Authority's Commissioners regular reports of the same. It will also make usual and customary reports required under the CDBG  program on behalfof the Authority.  4.  In the event a borrower defaults on its obligations under thel Deed ofTrust and/or Note, the  Authority will, in consultation with the Town and DHCD, promptly calculate the borrower's liability and give notice to the borrower of its repayment obligations. In the event that the borrower is unwilling or unable to repay its obligations and upon request of the Authority, the Town will provide legal counsel to the Authority in accordance with Section 36-14 of the Code of Virginia, 1950, as amended, for the purpose of enforcing the Deed of Trust and/or Note, and such other costs of enforcement as may be incurred and  not recoverable under the terms of the Deed ofTrust and/or Note.  WHEREFORE, the Authority and the Town affix the signatures of authorized officials below:  TOWN OF BEDFORD, VIRGINIA: Barrett F. Warner, Town Manager  Date:  TOWN OF BEDFORD REDEVELOPMENT AND  HOUSING AUTHORITY:  Jim Messier, Chair, Board of Commissioners  Date:  (00426555. DOCX  2    EXHIBIT A TOWN OF BEDFORD DEED OF TRUST NOTE BETSYL. BORROWER  Hilltop Community Revitalization Project 2024 Community Development Block Grant Housing Loan Program  For Value Received, the undersigned, jointly and severally, promises to pay to the TOWN OF BEDFORD REDEVELOPMENT AND HOUSING AUTHORITY ("The Noteholder"), the principal sum One hundred twenty-three thousand dollars ($123,000.00) of the aforementioned principal sum is a repayable loan without interest and ifnot sooner paid, matures on the ISt day ofJanuary 2031; and Further, one thousand twenty-five dollars and 00/100ths ($1,025.00) of the aforementioned loan is forgiven on the 15 day of each month at a rate of1/120 of the total amount for one hundred twenty (120) months until the loan is paid in full; provided, however, that no payments shall be forgiven during any period when the Borrower is in default under any provision of this Note, and in such event the Borrower shall become obligated to pay the remaining portion of the loan which would otherwise have been forgiven. Any payments due under the aforementioned note shall be made payable to the Town of Bedford Redevelopment and Housing Authority, clo Town ofl Bedford Department ofFinance, 215 East Main Street, Bedford, Virginia 24523, or such other place as the Noteholder may designate in writing, on the IS day of each month as such payments may come due, and continuing on the like day of each successive month All payments received by the Noteholder on account of this Note shall be first applied to accrued interest and the residue to reduction of principal, or to other debts due and payable to the Noteholder, in the The undersigned shall pay to the Noteholder a late charge of five percent (5%) of any installment not In the event that any monthly installment due under this Note is not paid when due and remains unpaid for a period of fifteen (15) days after written notice is sent stating that any of the parties hereto shall be in default in the performance of any of the covenants, terms or conditions of the instrument securing the indebtedness evidenced hereby, then the entire principal amount outstanding hereunder and accruedinterest thereon shall at once become due and payable at the option of the Noteholder. Failure to exercise such option upon default shall not constitute waiver of the right to exercise such option upon any subsequent The undersigned covenants not to pay the debt evidençed by this Note or any part thereof prior to ori in advance of the payment schedule described hereinabove, except as approved in writing by the Noteholder.  of one hundred twenty-three thousand dollars ($123,000.00), without interest.  thereafter until the entire indebtedness evidenced hereby is fully forgiven or paid.  sole discretion of the Noteholder.  received by the Noteholder within fifteen (15) days ofi its due date.  default.  (00426555.DOCX  Page 1    The loan evidenced by this Note is being made to finance thei improvement ofc certain property pursuant tot the Community Development Block Grant Loan Program. This Note and the instrument securing the The undersigned makers, and any and all endorsers, sureties, guarantors, and assumers hereof (each a "Party" and collectively the "Parties" hereto), hereby jointly and severally waive presentment, demand, protest, notice of dishonor and of protest, the benefits of homestead, and all other waivable exemptions, and all defenses and pleas on the ground of any extension(s) of the time of payment or of the due dates of this Note, is whole or in part, before or after maturity, with or without notice, it being further agreed by all Parties that they will pay any collection or enforcement of this Note or any part hereof. This Note is secured by a Deed of Trust of even date herewith conveying real property and other security, which real property is briefly described as 369 Main Street located in the Town of Bedford, and more fully described in said Deed ofTrust, in which the Trustee is Michael Lockaby, Esq.  same may be sold, assigned, and transferred by the Noteholder.  WITNESS the following signature(s):  BETSYI L. BORROWER  Property Address: 369 Main Street, Bedford, VA 24523 COMMONWEALTE OF VIRGINIA CITY/COUNTY OF  to wit:  This is to certify that this is the Note described in and secured by a Deed of Trust dated the  day  202_, on the above property located in the Town of Bedford, Virginia and  executed by Betsy L. Borrower. Betsy L. Borrower. NOTARY PUBLIC My Commission No.: My Commission expires  The foregoing instrument was acknowledged before me this  day of  202_, by  (00426555.DOCX  Page 2    Prepared by: Michael W.S. Lockaby (VSB No. 74136) Bedford Town Attorney Guynn, Waddell, Carroll & Lockaby, P.C. 415 South College Avenue Salem, Virginia 24153  Return to: Matthew D. Perkins Central VAI Planning District Comm'n 828 Main Street, 12th Floor Lynchburg, Virginia 24504 (434)845-3491  TOWN OF BEDFORD  Hilltop Community Revitalization Project 2024 Community Development Block Grant Housing Loan Program  DEED OF TRUST Tax Map # 123-456 and 17.1-279(E).  This instrument is exempt from recordation taxes and fees pursuant to Virginia Code $S 58.1-811(B)(6), 17.1-266,  This Deed of Trust is Made as of the_  day of  2021, by and between  BETSY T. BORROWER (herein referred to as "Borrower"), MICHAEL LOCKABY, Esq. (herein referred to as "Trustee"), and the TOWN OF BEDFORD REDEVELOPMENT AND HOUSING AUTHORITY, aj political subdivision of the Commonwealth of Virginia whose office is 215 East Main This record, in addition to covering other property, is filed in the real property records as aj fixture filing and covers goods that are or are to become fixtures. The real properly to which the foregoing is related is described on Exhibit A attached hereto and incorporated herein by this reference. The "Secured Party" is Town of Bedford Redevelopment and Housing Authority, and the "Debtor" is Betsy L. Borrower. The record owner is Betsy L. Borrower. This documen! serves as aj fixture fling  Street, Bedford, Virginia 24523 (herein referred to as "Lender").  under the Virginia Uniform Commercial Code Na. Code Section 8. 9A-502).  RECITALS  Whereas, the Borrower has executed a Deed of Trust Note of even date (the "Note") payable to the Lender in the amount of one hundred twenty-three thousand dollars ($123,000.00) and maturing on 1st day of January, 2031, and evidencing a loan for rehabilitation of the Property (as defined herein below) Whereas, the Borrower desires to secure to the Lender the payment of certain indebtednesses of the Borrower to the Lender and the performance of certain covenants made by the Borrower to the Lender; Whereas, one thousand twenty-five and 00/100ths ($1,025.00) of the aforementioned loan amount is forgiven on the 1* day of each month at a rate of 1/120 of the total original principal amount of the loan for onel hundred and twenty (120): months until the loan inj paidi in full; provided, however, that no payments shall be forgiven during any period when the Borrower is in default under any provision of this Note, and  intended for occupancy by persons of low and moderate income; and  and  (002655.DOCX)    Deed of Trust Borrower: Borrower, Betsy! L. Trustee: MichaelV W.S. Lockaby  ins such event the Borrower: shall become obligated toj pay the remaining portion ofthel loan which otherwise  would have been forgiven.  Witnesseth:  Now, Therefore: That for and in consideration of the provisions of this Deed of Trust (herein referred to as "Deed")and of$1.00 cash in hand paid and other valuable consideration, the receipt whereof is hereby acknowledged, the Borrower does hereby grant and convey unto the Trustee, with General Warranty and the usual English Covenants ofTitle, the real property described with particularity below:  (SEE SCHEDUIEAPATTACHED  (Details from Deed)  Together with all buildings, improvements, and fixtures now or hereafter erected thereon, including without limitation all apparatus, equipment, fixtures or articles, used to supply heat, gas, air conditioning, water, light, power, refrigeration, ventilation, or other services, and all items of personal property and any other thing now or hereafter therein or thereon used in connection with the Property including without limitation screens, window shades, storm doors and windows, affixed floor coverings, screen doors, venetian blinds, awnings, stoves, and water heater (all of which are declared to be aj part of said real estate whether physically attached thereto or not); and also together with all easements relating to the Property, as well as any unearned hazard insurançe premium with respect to such property, all of which are hereby pledged, assigned, transferred and set over unto the Trustees, whether now due or hereafter to become due. All oft the foregoing realty and personalty are hereafter sometimes referred to as the "Property." In Trust, However, to secure to the Lender the performance and payment by the Borrower ofthe indebtednesses described in Paragraphs 1,2, and 3 below, which indebtednesses are sometimes referred to herein as the "Secured Indebtednesses," and also to secure the prompt and punctual performance by Borrower ofeach and every covenant, condition, and agreement contained herein, and each and every other obligation, covenant, and agreement (sometimes referred to herein as the "Secured Covenants") of the  Borrower to and with the Fund concerning or relating to the Property.  SECURED INDEBTEDNESSES  The Secured Indebtednesses consist of:  1. 2.  Indebtednesses under Note. All obligations under the Note, ifany, and each note given Indebtednesses Arising Under Deed of Trust. All indebtednesses to the Lender and to  in substitution for, or upon any renewal or extension of, the Note.  the Trustees which arise under any of the Borrower's covenants expressly made herein, including fees of their attorneys and agents and other expenses respectively incurred by them in connection with the performance by or assertion oftheir respective rights and/or duties as set forth in this Deed. arising out of the Secured Covenants or otherwise, whether now existing or hereafter incurred, whether or Whenever moneys are to be applied by the Lender to the payment of the Secured Indebtednesses, the Lender shall determine, ini its sole discretion, the order and manner in which such moneys are to be  3.  Other Indebtedness. All other indebtednesses of the Borrower to the Lender, whether  not represented or evidenced by negotiable instruments or other writings.  (0026555.DOCX  Page 2    Deed of Trust Borrower: Borrower, BetsyL L. Trustee: Michael W.S. Lockaby  applied to thei individual indebtednesses secured hereby, unless expressly provided otherwise by this Deed,  by other written agreement between thel Borrower and the Lender, or by law.  ADDITIONALSECURITY  As additional security for the payment of the Secured Indebtednesses and performance of the Secured Covenants, the Borrower hereby transfers, sets over and assigns to the Lender the following: All judgments, awards of damages, settlements, and compensation made in connection with or in lieu of (i) any taking of thel Property by or under assertion of the power of eminent domain; (ii) any damage to or destruction oft the Property byi insured casualty, except such sums as are used for repair or restoration inc compliance with! Secured Covenant (5); and (iii) any other injury or damages to the Property. TheLender is authorized and empowered (but not required) to collect and receive any such sums and is authorized to apply them in whole or in part to the reduction ofthe Secured Indebtednesses and/or to the performance of  the Secured Covenants.  SECURED COVENANTS  The Borrower covenants and agrees as follows:  (1)Payment and Performance. Borrower shall pay without notice or demand all Secured Indebtedness and shall fully perform without notice or demand all Secured Covenants, when such payments or (2) Payment and Discharge of Liens. Borrower shall pay when due all amounts and shall perform all covenants secured by any deeds of trust recorded prior to this Deed. The Borrower also shall pay, when due, all claims of every kind and nature which might or could become a lien on the Property or any part thereofhaving priority over the lien of this Deed, and the Borrower shall not at any time create or allow to exist any prior lien on the Property or any part thereof of whatsoever kind or nature other than those specifically: approved by thel Lender; provided, however, that the following are excepted: from the foregoing: (i) liens for taxes and assessments which are not delinquent although by law are given the status ofa lien and (i) such of the above claims as are, and during the time they are, being contested by the Borrower in good faith and by appropriate legal proceedings, but the Borrower shall post such security for the payment (3) Maintenance of the Property. (i) Borrower shall promptly repair, restore, or rebuild any part of thel Property that may become damaged or be destroyed while subject to the lien ofthis Deed; (ii) Borrower shall not commit or suffer waste of the Property; (iii) Borrower shall not commit or suffer to be done or exist on or about the Property any condition whereby the Property shall become less valuable; (iv) without prior written permission of the Lender, Borrower shall: not remove or demolish the Property; (v) Borrower shall comply with all applicable laws, ordinances, regulations, covenants, conditions, and restrictions (4) Inspections. The Lender and its agents shall have the right to entry and free access to the Property and right to inspect all buildings, fixtures, and equipment in the Property. All books, contracts, records, documents, and other papers relating thereto shall at all times be available at the Property (or such other place as the Lender shall approve) in reasonable condition for proper audit and shall be subject to examination and inspection and copying at any reasonable time by the Lender or its authorized agents. Itis understood and agreed that any inspection hereunder by the Lender shall be for the sole benefit and protection of the Lender, and neither the Borrower nor any other party shall be entitled to rely upon such  performance are due.  ofsuch contested claims as is requested by the Lender.  affecting the Property, and not suffer or permit any violations thereof.  (00426555 DOCX)  Page: 3    Deed of1 Trust Borrower: Borrower, BetsyL. Trustee: MichaelW.S. Lockaby  inspection for any purpose whatsoever, including without limitation the assertion of: (a) any claim or defense with respect to any failure by the Borrower to perform in accordance with the terms oft this Deed; or (b) any waiver or other modifications of the rights of the Lender or obligations of the Borrower (5) Insurance. Borrower shall maintain insurançe for the full replacement cost of the Property, and shall maintain policies ofinsurance against such other hazards, casualties and contingencies as the Lender may require, with all such policies naming the Lender as the mortgagee and to be in form satisfactory to, and withi insurance companies approved by, thel Lender. The proceeds ofany such insurance shall be applied by the Lender to the restoration of the Property damaged or destroyed, under safeguards satisfactory to the Lender ini its sole discretion. Such policies shall, at the option of the Lender, be directed to and held by the Lender without liability. Borrower shall provide to the Lender annual certificates of insurance or endorsements, as applicable, and evidence that insurance policy premiums have been paid when due. (6) Payment ofl Escrow Deposits. (i) At the option of thel Lender, the Borrower shall pay to thel Lender, to the extent requested by the Lender, on the dates upon which interest is payable, such amounts as the Lender from time to time estimates are necessary to create and maintain a fund from which to pay before the same become due, all taxes, assessments, liens, hazard insurance premiums, and charges on or against the Property. Payments from said fund for said purposes may be made by the Lender at its discretion even though subsequent owners of the Property may benefit thereby. Funds deposited for one purpose may be disbursed by the Lender for any of the other purposes listed in this Section. (ii) Payments pursuant to this Section and payments due under the Note shall be added together and the aggregate amount thereof shall be paid by the Borrower each month in a single payment to be applied by the Lender to the following items  hereunder.  in the order set forth:  A. Amounts required pursuant to subparagraph () of this Section. C.A Amortization of principal due under thel Note.  B. Interest due under thel Note.  Any excess funds accumulated under this Section remaining after payment of the items herein mentioned shall be credited to subsequent monthly payments of the same nature required hereunder. Ifany such item shall exceed the estimate thereof, the Borrower shall, without notice or demand, forthwith make (7) Payment of Taxes and Utility Charges. The Borrower shall pay, when due, all taxes and assessments both general and special, ground rents, fines, penalties, impositions, levies, dues, and charges of every type or nature levied upon or assessed against the Property including any personal property included thereon, or upon the interest therein of the Lender or the Trustees hereunder and shall annually (8) Warranty of Title. The Borrower is lawfully seized of an indefeasible estate in the Property in fee simple, free from encumbrances except as disclosed to and accepted by the Lender, has good right and power to convey the Property, does hereby warrant generally the same, and shall execute such further (9) Attorneys' Fees: Costs ofTrustees' Sale. Ifthe Lender employs an attorney to collect any or all of the Secured Indebtednesses or to foreclose this Deed, or authorizes the Trustees to conduct Trustees' sale proceeding hereunder, then the' Trustees and thel Lender shall be reimbursed by Borrower, immediately and without demand, for all reasonable costs, charges and attorneys' fees incurred by them or either of them in any such case whether or not suit be commenced, and the same shall be secured hereby.  good the deficiency.  provide to the Lender evidence that all such payments have been paid when due.  assurances as may be requisite.  (00426555.DOCX 1  Page 4    Deed of Trust Borrower: Borrower, Betsyl L Trustee: Michael W.S. Lockaby  (10) Sale or Forbearance. No sale of the Property, forbearance on the part oft the Lender or extension of the time for the payment oft the Secured Indebtednesses given by the Lender shall operate to release, discharge, modify, change, or affect the original liability of the Borrower herein either in whole or in part. (11) Rights of Lender to Remedy Defaults. If the Borrower defaults in payment of any sums or in the performance ofa any act at required tol be paid or performed by the Borrower under the provisions ofany oft the covenants herein, the Lender may, at its option, make payment thereof or perform any act required of the Borrower, to such extent and in any form or manner deemed expedient by the Lender, and pay any other sums, expenses, and charges, including attorneys' fees, which the Lender deems necessary or appropriate therefor. The Lender shall be the sole judge of the validity, priority, and amount of any such claims so paid byi it and the necessity for the performance by thel Lender ofany such act which the Borrower was required but failed to perform. The Lender at its option, shall be subrogated to any encumbrance, lien, claim, or demand which it has paid under the provisions hereof and any such subrogation rights shall be additional and cumulative security to those set forth in this Deed and as provided by law. (12) Repayment to the Lender. Upon the payment ofany sums or performance of any act which the Borrower fails to pay or to perform, the amount sO paid or the cost of performing any such act, together with other sums paid or incurred by the Lender (including charges, expenses and attorney's fees deemed necessary or appropriate by the Lender to effect such payment or to perform such act) immediately and without notice or demand, shall be paid by the Borrower to the Lender. The foregoing amount shall be (13) Regulatory Covenants. The Borrower hereby agrees that it shall comply with the provisions of all applicable federal, state, and local laws prohibiting discrimination in housing and that the Borrower, to the extent it has employees, and all contractors and subcontractors engaged in the construction, rehabilitation, or management of the Property, shall provide an equal opportunity for employment without unlawful discrimination during the entire time that any indebtedness or security covenant is secured by this Deed. The Rehabilitation": shall be deemed to be the provision or the performance oft the labor, services or material necessary toi install, construct or complete those improvements in accordance with the work write- up or the plans and specifications for the Property which were submitted to and approved by the Lender (such write-up or plans and specifications are referred to herein as the "Plans"). The Plans are incorporated (14) Sections 55.1-325, 320 through 324, Code of Virginia. The duties, rights and obligations set forth in Section 55.1-320 through 324 of the Code of Virginia shall be deemed to be superseded by the provisions of this Deed to the extent inconsistent herewith. Except as otherwise herein expressly provided, this Deed shall be construed to incorporate the provisions of Sections 55.1-320 through 55.1-324 of the Code of Virginia as now in force and specifically to incorporate herein the following provisions, by short  secured hereby.  herein by reference.  form' below, of Sections 55.1-325 of the Code of Virginia: Renewal, extension or reinstatement permitted.  Exemptions waived. Any Trustee may act.  Advertisement required: Such advertisement shall be published once a day for three (3) days. (15) Events of Default. Any one or more of the following events shall constitute a default under this Deed: (a) Default in the payment ofa any portion of the Secured Indebtednesses or any installment thereof, whether principal, interest, loan repayment, or otherwise, when and as the same shall become due and  100426555.DOCX  Page 5    Deed of Trust Borrower: Borrower, BetsyL. Trustee: Michael W.S. Lockaby  payable, whether at maturity or by acceleration or otherwise; or (b) Default in the due performance or observance ofany Secured Covenant; or () Misrepresentation or omission by the Borrower of any material fact in the Application, any supplements or amendments thereto or in or with respect to any document or information furnished pursuant thereto; or (d) If the Borrower shall be involved in financial difficulties as evidenced: () by an admission in writing ofitsi inability to pay its debts generally as they become due; (i) by filing a petition in bankruptcy or for the adoption of an arrangement under the Title 11 of the United States Code, as amended, or corresponding state bankruptcy laws (collectively "bankruptcy laws"), oran admission seeking the relief therein provided; (ii) by making an assignment for the benefit of creditors; (iv) by consenting to the appointment ofai receiver, conservator, or trustee for all or a substantial part ofits assets; (v) by failing to timely controvert and seek dismissal of any involuntary petition against it under bankruptcy laws; (vi) by being adjudicated a bankrupt; (vi) by the entry of a court order appointing a receiver, conservator, or trustee for all or a substantial part of the assets of the Borrower or approving as filed in good faith aj petition filed against it under the bankruptcy laws; (vi) by the assumption of custody or sequestration by a court of competent jurisdiction ofall or substantially all of the assets of the Borrower; (viii) by an: attachment for an amount in excess of$5,000 on any substantial part ofthe asset ofthe Borrower which shall not be discharged within thirty (30) days from the making thereof; (ix) by aj judgment or decree for the payment of money in excess of $5,000 being entered against the Borrower, or if an attachment, execution or levy is made upon any ofits assets and the judgment, execution or levy, as the case may be, is not discharged or stayed with thirty (30) days from the date ofthej judgment, attachment, execution or levy as the case may be; or (x) by default under any deed of trust recorded prior to this deed.  (16) Remedies on Default.  (a) Acceleration. In the event of any default hereunder, then all of the Secured Indebtednesses shall, at the option of the Lender, become at once due and payable. No failure by the Lender to exercise such option shall be deemed or construed as a waiver of the right to exercise same in the event of any (b) Sale. In the event of default hereunder, then at the request of the Lender the Trustee shall sell (and in the case of default of any purchaser, shall resell) the Property at auction, unless the Lender and the Trustee shall agree upon other terms. Such sale shall bel held, in the discretion ofthe Trustee, at the premises ori in front oft the circuit court building (or at such other place as the Trustee may select) in the city or county in which the Property or the greater part thereoflies, ori in the corporate limits of any city surrounded by or contiguous to such county, or in the case ofannexed land, in the county of which the land was formerly a part. Such sale shall be made upon such other terms and conditions, ins such parcels and at such times as the Trustee shall deem proper. Upon compliance with the terms of such sale, the Trustee shall convey the Property in fee simple to and at the cost of the purchaser thereof (who shall not be required to see to the application oft the purchase money) and to hold and apply the proceeds of such sale or sales in the manner (c) Entry and Receivership. In the event of any default hereunder and irrespective of whether the Lender accelerates the maturity of all indebtednesses secured hereby, the Lender may exercise the rights and remedies provided herein. In addition, in the event ofs such default, the! Lender or the Trustees, upon the Lender's written demand tot the Trustees, without notice may enter upon and take possession oft the Property or any part thereof, and perform personally or by their agent any acts which the Lender or their Trustees deem necessary or proper to operate, manage and conserve the Property and/or have a receiver appointed. The expenses (including but not limited to the Lender's, the Trustees' and the receiver's fees, counsel fees, costs, and agents' compensation) incurred pursuant to thej powers herein contained shall be secured hereby.  subsequent or continuing event or default.  provided by law and this Deed.  100426555 DOCXI  Page 6    Deed of Trust Borrower: Borrower, BetsyL. Trustee: Michael W.S, Lockaby  In the event that the Trustees take possession of the Property pursuant hereto, the Trustees shall after payment ofallt their costs and expenses, pay tot the Lender all rents and other income collected by the Lender or the Trustees, and the Lender shall apply the same to the payment of the Secured Indebtednesses. The right under this subparagraph (c) to enter and take possession of the property and to manage and operate the same whether by a receiver or otherwise, shall be in addition to any other right or remedy hereunder or afforded by law, and may be exercised concurrently therewith or independently thereof. (d) Application of Funds. With respect to funds (including investments therefrom) which are security under this Deed, the Lender shall, in the event of default hereunder, have the right, in addition to all other rights and remedies hereunder, at any time and from time to time to expend all or any part ofsuch funds for the repayment of the Secured Indebtedness or the performance ofthe Secured Covenants. In the event of a sale under subparagraph (b), any such funds then remaining shall be applied to the Secured (17) Delay. No delay by the Lender or the Trustees in exercising any right or remedy hereunder or otherwise afforded by law shall operate as a waiver thereof or preclude the exercise thereof during the (18) Sales and Transfers Prohibited. During the period that the Note is secured by this Deed, the Borrower shall not, without prior written consent of the Lender, sell assign, convey, or transfer, not suffer or permit any sale, assignment, conveyance, or transfer ofa all or any part of any interest in the Property or any other security hereunder. Any permitted sale, conveyance, or transfer shall be on such terms and (19) Trustee Substitution. Thei irrevocable power to appoint a substitute trustee or trustees hereunder is hereby expressly granted to thel Lender, tol be exercised at any time hereafter, with specifying any reasons therefor by filing for record in the Clerk's office where this instrument is recorded a deed appointment. Said power of appointment of successor trustee or trustees may be exercised as often as and whenever the Lender deems advisable. The exercise of said power of appointment, no matter how often, shall not be an exhaustion thereof, and upon recording of such deed or deeds of appointment, the trustee or trustees sO appointed shall thereupon, without further act or deed ofc conveyance, succeed to and become fully vested with identically the same title and estate in and to the Property hereby conveyed and withal the rights, powers, trusts and duties of their, his or its predecessor in the trusts hereunder, with like effect as if (20) Notice. Unless required by law, notice of the exercise of any option granted to the Lender herein need not be given, and thel Borrower hereby waives, to the extent permitted! by law, any notice oft the election (21) Remedies Cumulative. No remedy herein contained or conferred upon the Lender or the Trustees is intended to be exclusive ofany other remedy or remedies afforded by law or by the terms thereof to the Lender or to the Trustees, but each and every such remedy shall be cumulative and shall bei in addition to (22) Successors, Assigns, Gender, Number. The covenants and agreements herein contained shall bind, and the benefits and advantages shall inure to the respective heirs, executors, administrators, successors and assigns of the parties hereto. Wherever used, the singular number shall include the plural, and the plural the singular, and the use ofany gender shall be applicable to all genders.  Indebtednesses.  continuance of any default hereunder.  conditions as thel Lender shall prescribe.  originally named as trustee or as one of the trustees hereunder.  of the Lender to exercise any such option.  every other remedy given hereunder or now or hereafter existing at law or in equity.  (0042655.DOCX  Page 7    Deed of Trust Borrower: Borrower, BetsyL. Trustee: Michael W.S. Lockaby  (23) Security Agreement. This Deed shall constitute a security agreement under the Uniform Commercial Code for the benefit of the Lender as Secured Party. In the event of default hereunder, the Lender may, at its sole election, proceed to enforce any one or more of the rights and remedies (i) as provided in this Deed or any other agreements or instruments relating to the Property, or (ii) as otherwise (24) Headings. The headings herein are inserted only for convenience of reference and in no way define, limit or describe the scope or intent ofthis Deed, or ofany particular provision thereof, or the proper  provided by law. construction thereof.  Upon the repayment of all Secured Indebtedness and upon the performance of all Secured THIS DEED WAS PREPARED WITHOUT THE BENEFIT OF A FULL TITLE REPORT. NO REPRESENTATION ASTOTHE STATUS OF TITLE IS MADE BY THE ATTORNEY PREPARING  Covenants, the Borrower covenants to pay the expenses of releasing this Deed.  THIS DEED.  Witness the following signature(s): GRANTOR:  BETSY L. BORROWER COMMONWEALTH OF VIRGINIA CITY/COUNTYo,  to wit:  The foregoing Deed ofTrust was acknowledged before me this  day of  202  by Betsy L. Borrower. NOTARY PUBLIC My Commission No.: My Commission expires  Signatures continue on following page  (0042655.DOCX  Page 8    Deed of Trust Borrower: Borrower, BetsyL. Trustee: Michael W.S. Lockaby  GRANTEE:  MICHAEL W.S. LOCKABY, Esq., as Trustee for the  TOWN OF BEDFORD REDEVELOPMENT AND HOUSING AUTHORITY  COMMONWEALTH OF VIRGINIA  CITY/COUNTYo,  to wit:  The foregoing Deed ofTrust was acknowledged before me this  dayof  2020,  by Michael W.S. Lockaby, Esq., as Trustee for the Town of Bedford Redevelopment and Housing  Authority. NOTARY PUBLIC My Commission No.: My Commission expires  (00426555.DOCX  Page 9