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RESOLUTION 2007-131 VIII. CLEARANCE/PERMANENT RELOCATION/DEMOLITION RELOCATION A. General Permanent Relocation and/or Demolition Relocation are synonymous terms used in the rehabilitation program when a home is unsound and not suitable for rehabilitation based on the structural integrity criteria. Homeowner eligibility requirements are the same as for rehabilitation. Further policies are included in the local Anti -displacement and Relocation Policy. B. Clearance Requirements are identified by the Housing Rehabilitation Specialist and are included in the replacement unit bid package. In this way, the same contractor is responsible for site clean-up and preparation as for provision of the replacement unit. Disposal of debris and associated activities are also included if this method is utilized. When demolition or clearance is conducted separately, bid packages are prepared with procedures following those identified for rehabilitation in this manual. C. Permanent Relocation/Demolition Relocation This activity involves replacement of an eligible owner occupied unit that is not economically feasible to repair. The Indian River County Commission will decide with the Housing Rehabilitation Specialist on a case-by-case basis whether to utilize a slab "site built" of wood or concrete block construction as a replacement unit. Decision items will include budget, zoning, replacement requirements, cost estimates, and a number of other items that may vary case-by-case. Once the decision is made, the Housing Rehabilitation Specialist prepares bid specifications and plans (if necessary) based on owner input from review of available plans. Bidding contracting and inspections then proceed as in the rehabilitation process. D. Differences A major difference in this type of rehabilitation assistance is that the DPL issued is not for the full value of the replacement unit. The value of the DPL is based on a calculation that takes the difference between the assessed value of the original unit (real property not included) and the actual cost of the new unit (without real property). The difference is the value of the DPL. This is because the dilapidated unit that was demolished belonged to the owner and is being replaced on a one-for-one basis. Ownership of the replacement unit is vested directly to the owner with no interest on the part of the local government (except for the DPL). 2. Program disbursements are made from the local CDBG operating account. As a result, attention must be paid to the ordering and receipt of funds, to ensure that disbursements are made in a timely manner and that the federal three-day rule is not violated. 3. The homeowner must maintain fire and casualty insurance on the replacement unit for the period of the DPL. This protects the local government's investment, is sound practice, and equalizes the program to that of rehabilitation. 14