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In addition, for the CDBG and DRI categories, the cost of rehabilitation and <br />improvements may not exceed the after -rehabilitation value of the dwelling. In the <br />absence of conflicting information, the mobile home DRI cost limits shall be <br />assumed to meet this requirement. For site -built dwellings, the total cost of <br />rehabilitation (plus other improvements, if any) may not exceed eighty dollars <br />($80) per square foot of dwelling space, excluding septic tank, well, or <br />water/sewer hook-ups, which is less than the cost of new construction and will be <br />assumed to meet the cost/value limit. <br />N. Clearance <br />Requirements are identified by the HRS and are -Included in the replacement unit <br />bid package. In this way, the same Contractor is responsible for site cleanup and <br />preparation as for provision of the replacement uni�Disposal of debris and <br />associated activities are also included if/this method i�utilized. When demolition <br />or clearance is conducted separately,,fbid,packages are prepared with <br />procedures following those identified for rehabilitation in�this manual. <br />O. Rehabilitation /Demolition Differences , �� <br />A major difference between -assistance provided to demolish /replace an entire <br />unit and rehabilitation work is that, with ademo,/replace unit, the DPL issued is <br />not for the full value of the replacement unit (owner occupied). (With <br />rehabilitation, the DPL is issued,for-the full valu`eof the rehab work performed.) <br />The value of the DRL is basedw n a calculation that -takes the difference between <br />the assessed/value-of the original unit (real property no6ncluded) and the actual <br />cost of the new. unit (without real property). The -difference is the value of the <br />DPL. This is'hecause the dilapidated unit that was demolished belonged to the <br />Applicant homeowner and is -being replaced on a one-for-one basis. Ownership <br />of the replacementhunitis ves ed -directly to the homeowner with no interest on <br />the part of -the local government••( e�bepSfor the DPL). Generally, the local <br />,government will accept,interim ownership of mobile homes to save program <br />costs (taxes) with.,transfer-to the homeowner as soon as possible, upon <br />satisfaction of the DPL. <br />1. No partial payment, is' provided for modular replacement units, as the time <br />frame to,complete%the transaction is relatively brief. The Contractor is paid in <br />full upon satisfactory'completion of work and providing of warranties. Partial <br />payments are,utilized for site built homes along the same lines as for <br />rehabilitation work. <br />2. Program disbursements are made from the local CDBG operating account. <br />As a result, attention must be paid to the ordering and receipt of funds, to <br />ensure that disbursements are made in a timely manner and that the <br />CDBG/DRI limitation for cash on hand is not violated. <br />lis <br />