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encouraged to stay with family and friends during rehabilitation activities. The purpose of the relocation payment is to assist the person(s) the homeowner is staying with in the payment of monthly utility fees. The payment will be $75.00/month for a family of three or less, and $125.00/month for a family of four or more. These payments are only for the period of time the homeowners cannot live in their residences. D. 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 Board of County Commissioners 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. E. Differences 1. 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. 4. Cost feasibility limits are based on number of bedrooms to be provided for site built homes. These limits that may not be exceeded without approval from the Indian River County Board of County Commissioners are: (a) four or more bedrooms - $57,000 (b) three bedrooms - $55,500 (c) two bedrooms - $52, 500 15