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HomeMy WebLinkAbout2007-131i)A, X RESOLUTION NO. 2007 - 131 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA, AUTHORIZING THE COMMUNITY DEVELOPMENT DIRECTOR TO MAKE APPLICATION TO THE FLORIDA DEPARTMENT OF COMMUNITY AFFAIRS FOR A DISASTER RECOVERY INITIATIVE COMMUNITY DEVELOPMENT BLOCK GRANT FOR FEDERAL FISCAL YEAR 2007. WHEREAS, during the 2005 Hurricane season, damage occurred in Indian River County to existing housing units that are now deteriorated and in need of being rehabilitated, replaced, and/or hardened against future hurricanes; and WHEREAS, it is the desire of the Indian River County Board of County Commissioners to submit an application to the Florida Department of Community Affairs for a Disaster Recovery Initiative Community Development Block Grant to assist in recovery from the effects of Hurricane Wilma by rehabilitating, replacing, and/or hardening deteriorated housing within the County to benefit persons of low and moderate income, where no other funding is available to address the need; and WHEREAS, the proposed Community Development Block Grant (CDBG) application is consistent with the Indian River County Comprehensive Plan; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY; THAT SECTION 1. The Board of County Commissioners hereby directs the County Clerk to execute all necessary certifications for the Community Development Block Grant application to be submitted on or before September 30, 2007. SECTION 2. The Board of County Commissioners directs the Community Development Director to execute and submit an application to the Florida Department of Community Affairs for State approval. 1 RESOLUTION 2007-131 SECTION 3. The Board of County Commissioners authorizes and directs the Community Development Director to submit additional information in a timely manner as may be required by the Florida Department of Community Affairs. SECTION 4. The Board of County Commissioners authorizes the Community Development Director to sign any subsequent forms as needed for the CDBG application and project. SECTION 5. This Resolution shall take effect immediately upon its passage. The foregoing resolution was offered by Commissioner Bowden , and seconded by Commissioner Fl escher , and being put to vote, the vote was as follows: Chairman, Gary C. Wheeler Aye Vice Chairman, Sandra L. Bowden Aye Commissioner, Wesley S. Davis Aye Commissioner, Joseph E. Flescher Aye Commissioner, Peter D. O'Bryan Aye The Chairman thereupon declared the resolution duly passed and adopted this 18th day of September, 2007. BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY BY a Gt�� Gary C. fftheeler, Chairman BCC Approved: September 18, 2007 ATTEST BY:'le'A C Date: �'z - V7 Jeffrey K. Barton, Clerk of the Circuit Court 2 RESOLUTION 2007-131 APPROVED AS TO FORM AND LEGAL SUFFICIENCY By: Date: 'c William G. Collins, II Deputy County Attorney FACommunity Deve1opment\Users\CDBG\2007 CDBG DR - Wilma\Application\Resolution\RESOLUTION TO SUBMIT APPLICATION.doc k] RESOLUTION 2007-131 CDBG 2007 Hurricane Wilma Disaster Recovery Initiative Housing Assistance Plan For Indian River County RESOLUTION 2007-131 TABLE OF CONTENTS I. Introduction II. Housing Rehabilitation Objectives and Policies a. Objectives b. Rehabilitation Policies c. Identification of Units d. Removal of Units from Program III. Conflict of Interest IV. Housing Rehabilitation Financing a. Deferred Payment Loans (DPL) b. Scope of Rehabilitation Assistance V. Qualifications a. General b. Household Income VI. Structural Requirements a. General b. Structural Integrity c. Cost Feasibility VII. Procedures a. Application and Inspection b. Bidding c. Contracting and Rehabilitation d. Inspections e. Change Orders f. Payment g. Disputes and Contract Termination h. Follow-up VIII. Clearance/Permanent Relocation/Demolition Relocation a. General b. Clearance c. Permanent Relocation/Demolition Relocation d. Differences IX. Contractor Listing a. Recruiting b. Contractor Eligibility c. Disqualification X. Relocation/Displacement XI. Appeals/Complaints XII. Program Income XIII. Income From Homeowner's Insurance, FEMA or SBA a. Income Resulting From Storm Damage XIV. Property Acquisition Policy a. Voluntary b. Non -Voluntary Acquisition Plan c. Timing/Planning Appendix A — Point Values to be Used in Ranking Applications Appendix B — Section 8 Income Limits W Page 4 5 5 6 6 7 7 7 8 9 9 10 10 10 11 11 12 12 13 13 14 14 14 14 14 15 15 16 16 17 18 18 18 18 18 18 20 20 22 23 RESOLUTION 2007-131 I. INTRODUCTION This manual is a guide for operating the housing rehabilitation and/or mitigation (building hardening) program funded by the Indian River County Community Development Block Grant (CDBG) 2007 Hurricane Wilma Disaster Recovery Initiative Program. The responsibilities of Indian River County, the homeowner, construction contractor, and the Housing Rehabilitation Specialist are specifically addressed in this manual. The major focus of this manual is on housing rehabilitation, demolition/clearance, replacement and mitigation (hardening) of dwellings. Relocation of households is also covered to a limited extent. The Anti -Displacement policy should be consulted if displacement or permanent relocation becomes necessary. The goal for the CDBG 2007 Hurricane Wilma Disaster Recovery Initiative program is to rehabilitate substandard housing units located in Indian River County and to bring them up to a minimum acceptable living standard. A secondary goal under the CDBG Disaster Recovery Initiative program is to mitigate (harden) other owner occupied single family housing units that are in standard condition but do not meet the wind load requirements included in the current Florida Building Code. The standards used for this program will be the HUD Section 8 Minimum Housing Quality Standard and the Florida Building Code. The goal of this program will be achieved through the use of 2007 Hurricane Wilma Disaster Recovery Initiative CDBG funds to contract for the required rehabilitation and mitigation (building hardening) construction. All units to be assisted shall be owner -occupied. II. HOUSING REHABILITATION OBJECTIVES AND POLICIES A. Objectives The objectives of the Indian River County Disaster Recovery Initiative CDBG 2007 Hurricane Wilma Disaster Recovery Initiative Housing Rehabilitation Program are: 1. To encourage the revitalization of low -to -moderate income neighborhoods through a Housing Rehabilitation Deferred Payment Loan (DPL) Program. 2. To remove unhealthy or hazardous conditions in low -to -moderate income households. 3. To mitigate the damage to the residential housing units address from future storm events. 4. To use the Community Development Block Grant Disaster Recovery Initiative rehabilitation and mitigation grant funds as a catalyst to encourage residents of low -to -moderate income neighborhoods to improve their community. 5. To preserve existing housing stock. 6. To enable low -to -moderate income families to rehabilitate their homes by providing financial and technical assistance to those unable to obtain private financing. 7. To reduce utility costs and to improve the comfort of low -to -moderate income neighborhoods. 8. To increase employment and training opportunities for local residents and minority persons through the provision of funds for the rehabilitation of homes. 9. To make homes accessible to elderly/handicapped occupants as may be required by code, accessibility requirements and as good judgment may dictate. 10. To minimize impact of program participation on recipients and to limit direct costs encountered because of program participation. RESOLUTION 2007-131 B. Rehabilitation Policies It is the policy of the Indian River County Rehabilitation Program to: 1. Assure that the Program is administered in strict conformance with the community development and rehabilitation rules and all applicable local, state, and federal requirements (including equal opportunity, conflict of interest, etc.) 2. Treat all participating property owners, residents, and contractors fairly, with sensitivity and respect for their needs, and in accordance with program rules. 3. Provide all program recipients any reasonable assistance necessary to carry out the objectives of the program, bearing in mind: a. That property owners hold the primary responsibility for maintaining their property and personal finances. b. That contractors are primarily responsible for the quality of their work and their obligations to suppliers, creditors, subcontractors, and employees; and c. That any assistance provided must be authorized at the proper level. d. Assure that no member of the Congress of the United States, the Citizen Advisory Task Force or the Indian River County Commission shall share in proceeds or benefits of CDBG funded rehabilitation work. e. Allow some flexibility in administering the program in order to meet the program's goals and objectives of rehabilitation and/or mitigating; each addressed dwelling to attain HUD Section 8 Minimum Housing Quality Standards and the Florida Building Code. The Indian River County Commission may waive program rules only when the result will be consistent with established goals and objectives, and applicable federal, state, or local regulations. C. Identification of Units Housing Rehabilitation will take place only on units approved by Indian River County and in accordance with grant requirements established by the State of Florida. Alternate units may be provided to replace any primary units that may become ineligible. To select participants in both the Rehabilitation and Permanent Relocation Activities, the following steps will be taken: A display ad will be placed in one or more local newspapers of general circulation advising local citizens of the availability of grant funds and establishing a convenient time and place for interested citizens to obtain information and pick up application forms to allow them to be considered for inclusion in the program. Applications will be accepted by the County for a minimum of twelve (12) calendar days after the notice is placed. 2. Notification by mail will be sent to owner -occupants of housing units identified by staff as being substandard. Applicants who have applied for but not yet received county SHIP rehabilitation assistance will be contacted and asked to submit an application. RESOLUTION 2007-131 For an applicant to be eligible to receive funding, the following criteria must be met: 1. The applicant has not received housing rehabilitation or replacement assistance from the County in the past five years. 2. If the residence is located in a flood plain, the floor elevation of the residence is at least six inches (6") above the base floodplain elevation of the property. The applicant has no outstanding or overdue payments to the county (i.e. garbage/trash bill, utility bills, taxes, etc.) or mortgage/lien holders. 4. The applicant has no outstanding code enforcement issues with the county. The applicant has clear title to the property. Once an applicant has met the threshold requirements for program eligibility listed above, the priority ranking in Appendix "A" shall be strictly adhered to in the selection of the applicants whose residences will be addressed under the program. D. Removal of Units from Program County Staff may remove a housing unit from the program for a change in household income, approved selection criteria, or for not complying with the minimum qualification procedures. If it is determined that it is necessary to remove an applicant from the program, a certified letter will be sent to the applicant stating the reasons for the removal. The applicant will have the right to appeal the decision. III. CONFLICT OF INTEREST Although addressed in other places in the Policy, adherence to rules and regulations on the matter of conflict of interest is mandatory. All applicants that may have a business or familial relationship with a member of the Indian River County Commission, Citizen Advisory Task Force Committee members, Housing Rehabilitation Specialist, Program Administrator, or participating construction contract is executed. In addition, all beneficiary names must be disclosed at the regular meetings of the Indian River County Commission and the Citizen Advisory Task Force (CATF) as selection of beneficiaries occur and these names must be included in the minutes of both the Council and the CATF meetings. Indian River County Commission and CATF members must disclose any relationship with an applicant and must abstain from any vote related to that applicant. As soon as a final ranking of the applicant is made, that ranking and any cases of conflict of interest must be made known at a meeting of the Indian River County Commission. Before an applicant with a potential or real conflict is given final approval for 5 RESOLUTION 2007-131 participation, the Indian River County Commission must notify the Department of Community Affairs (DCA) in writing. Prior to any rehabilitation, Indian River County must receive written notification of DCA's approval of the application, in accordance with 24 C.F.R. Section 570.489. If this process is not followed the local government and/or the applicant may be liable for returning funds to the program. IV. HOUSING REHABILITATION FINANCING The Housing Rehabilitation Program provides financing to homeowners in the form of 100% Deferred Payment Loans, the amount of which shall include the accepted bid amount plus a contingency reserve. A. Deferred Payment Loans Deferred Payment Loans are conditional grants, and are provided to homeowners who are unable or unlikely to obtain conventional financing due to their income limits. The Deferred Payment Loan (DPL) involves a security instrument (lien) requiring repayment of the loan only if the homeowner sells or transfers ownership of the rehabilitated home, ceases to use it as his/her primary residence within five years of the date of the DPL, or fails to maintain reasonable required standards of care and maintenance. During the five-year period, the principal is "forgiven" or subtracted from the principal balance in equal monthly amounts, so that at the end of the fifth year of owner occupancy (by at least one of the recipients if owned jointly), the loan is fully amortized. There is no interest charged during the five years. In the event that the sole owner dies or all owners die within the five-year loan period, repayment of the loan will not be required. If repayment of a DPL becomes due, the prorated principle balance will be due in full within thirty (30) days of the sale/transfer of ownership or the owner's cessation of primary residence at the property. If the owner is unable to make such a payment, the Indian River County Commission may, at their discretion, allow repayment of the DPL over a term not to exceed ten (10) years, at a yield of not more than six percent (6%) interest per annum. Homeowners whose household incomes do not exceed the HUD Section 8 low -to -moderate income limit will receive a Deferred Payment Loan for 100% of the cost of rehabilitation. The Maximum DPL for an owner -occupied single family dwelling is $50,000. The owner - occupied units in a two to four unit dwelling may receive a DPL of up to $30,000 per unit. If rehabilitation costs require more than $50,000 and the owner is unable to finance the additional cost, the dwelling unit may be disqualified unless alternative funding is available. Grant application scoring indicates an average rehabilitation amount that is to be attained. Very high costs frequently adversely impact other units planned for rehabilitation; therefore, the ability to maintain the necessary average must enter into the decision process. As a general policy, a contingency amount of about 10% should be placed on reserve for change orders. Exception may be made to this rule of the owner provides a firm commitment to pay for all required changes exceeding the authorized loan limit, or if the Administrator determines that the situation does not require a contingency fund. T RESOLUTION 2007-131 B. Scope of Rehabilitation Assistance CDBG financing of housing rehabilitation is available for the following purposes: 1. Correcting local housing code (Florida Building Code) and Section 8 standard violations; 2. Providing cost effective energy conservation features; 3. Provide reasonable repairs and modifications to make the dwelling accessible to handicapped and elderly occupants as necessary and technically feasible; and 4. Correcting health and/or safety violations that may be present, including replacement of dilapidated or malfunctioning stoves or refrigerators and interim controls or abatement of lead-based paint hazards. 5. Providing Mitigation (hardening) the building to meet current local wind load requirements. New construction (adding a room or closing in a carport, etc.) is eligible for rehabilitation financing only to eliminate over -crowding or to provide bathroom or laundry hook-ups. General property improvements are eligible for program funds when necessary to obtain an accurate level of utility, to decrease high maintenance costs, or the elimination of blight. Examples of eligible general property improvements include installation of cabinets and linen closets, functional changes in room layout, replacement of unapproved or damaged floor covering, and enclosure of a porch for use as a bathroom where the dwelling does not have adequate interior space. Some general property improvements may be provided at the owner's expense. For example, air conditioners are not eligible for program financing unless required for medical reasons. However, if the heating system must be replaced, the owner may pay the difference between the recommended heating system and a system that provides air conditioning as well. Other additional improvements, above those required to achieve minimum standards, are optional and at owner expense. The cost for any such improvements shall be borne totally by the owner who must deposit the funds with the local government before the improvements begin if the improvements are to be a part of the rehabilitation contract. General property improvements that are paid for by the property owner must be included in the Contract for Rehabilitation that is developed and administered by the Housing Rehabilitation Program. However, ineligible new construction must be contracted separately. The property owner must also deposit the necessary funds to cover the additional improvements into the local government's program account. This must be done prior to construction. Furthermore, any construction not covered in the construction contract will be inspected by the local Building Inspector, but will not be inspected by the Housing Rehabilitation Specialist. V. QUALIFICATIONS A. General In order for a homeowner to be eligible for rehabilitation assistance, the following criteria must be met: 1. Total household income must not exceed the low -to -moderate limits set for the HUD Section 8 Program at the time assistance is provided. 7 RESOLUTION 2007-131 2. The owner must possess and provide clear title to the property, although it may be jointly owned and the property may be mortgaged. Ownership through life estate, or other legal satisfactorily documented ownership is considered satisfactory for program participation. Providing proof of title is an owner responsibility and expense. 3. The owner must reside in the dwelling to be rehabilitated at the time of application. 4. Property tax, mortgage payments, and utility bills must be current and ownership must not be jeopardized by any other threat of foreclosure, default, or clouded title. 5. The property must be fully insured for flood insurance, if the home is in the 100 -year floodplain. Any unit to be addressed with rehabilitation funds must be elevated to at least one foot above base flood elevation (or to local code) whichever is greater. 6. All applicants that may have a business or familial relationship with a member of the Indian River County Commission, the Citizen Advisory Task Force Committee members, Housing Rehabilitation Specialist , Program Administrator, and participating construction contractors must fully disclose this relationship at the time of the application, at the point in time in which the conflict occurs and definitely before a construction contract is executed. 7. If a boundary survey is required, the owner is responsible for providing necessary proof or documentation at the owner's expense. 8. Residents and owners of rental property are not eligible to participate in the program. B. Household Income The following rules are applicable in determining household income: 1. The gross annual income of all household members occupying the dwelling is included in calculating household income. However, wages earned by dependent minor children (under 18) are not included in total. 2. Occupants of a dwelling who are not related to or dependent upon the owner(s) are not considered as part of the owner's household. 3. Rent or other household support contributed by non -household occupants of a dwelling is included in household income. 4. The owner's assets, with the exception of the home in which he/she resides and personal property such as an automobile, will be considered in determining eligibility. The actual annual income from the asset will be calculated as part of the total household income. Inclusion of such assets, if any, will be in strict accordance with 24 CFR 813.106 and any current modification thereof. VI. STRUCTURAL REQUIREMENTS A. General In addition to owner eligibility requirements for participation in the Housing Rehabilitation Program, the dwelling must be: 1. Below Section 8 Minimum Housing Quality and/or Florida Building Code Standards, including current Wind Load Standards; and 2. Feasible for rehabilitation. In order for a house to be considered feasible for rehabilitation, proposed construction must: a. correct all violations of the local housing code and Section 8 standards; RESOLUTION 2007-131 b. provide interim controls or abatement for lead-based paint hazards for structures constructed prior to 1978 that will be assisted by the program. The occupants will be notified of the hazards of lead-based paint, the symptoms and treatment of lead poisoning, how to avoid poisoning, lead level screening requirements, and appropriate abatement procedures; C. meet applicable local zoning requirements, as well as local, state, and federal housing code requirements for rehabilitation work; d. leave at least 20% of the original structure based upon the formula provided in this chapter; e. not exceed the program costs noted in this document; and f. be made reasonably accessible to handicapped/elderly occupants, when the unit is occupied by such. Air conditioners will only be provided when a member of the household produces a letter from a medical doctor actively treating this person for a respiratory condition requiring air conditioning. The letter must state that the person requires the air conditioning for the respiratory ailments. g. new construction or substantial improvement of any residential building located within the 100 year floodplain shall have the lowest floor, elevated no lower than (1) foot above the base flood elevation (or per local code). Should solid foundation perimeter walls be used to elevate a structure, openings sufficient to facilitate the unimpeded movements of flood waters shall be provided. B. Structural Integrity Rehabilitation requires that at least 20% of the original structure remain after construction, based upon the following formula. Three (3) major components of the house are considered, with each component weighted to total 100% of the structural value of the house. These components and ratios are: roof — 20%, exterior walls — 60%, and flooring system — 20%. This calculation will be performed by the Housing Rehabilitation Specialist. Should significant deterioration occur between application and time the unit is scheduled for rehabilitation, the unit will be re-evaluated for continued eligibility and a decision made by the Housing Rehabilitation Specialist whether to replace it with an alternate unit or to request a change in type of rehabilitation (demolition, permanent relocation, etc.) in accordance with current DCA contract amendment requirements. C. Cost Facility As an additional means of guarding against program penalties for substantial reconstruction of a dwelling, the following cost limits are applicable to all rehabilitation areas. These limits are above the allowable CDBG financing limits, and assume requirements for owner contributions or leveraging, but must be specifically approved by the Indian River County Commission as exceeding the described limits. $50,000 per single family detached house $30,000 per unit of a two -to -four unit complex In addition, the cost of rehabilitation and improvements may not exceed the after -rehabilitation value of the dwelling. For site -built dwellings, the total cost of rehabilitation (plus other improvements, if any) may not exceed $75.00 per square foot of the dwelling space, excluding so RESOLUTION 2007-131 septic tank, well, or water/sewer hookups, which is less than the cost of new construction and will be assumed to meet the cost/value limit. VII. PROCEDURES A. Application and Inspection Each property owner who applies for rehabilitation assistance is initially screened to determine whether he/she is eligible for a 100% Deferred Payment Loan. A preliminary inspection is then conducted to determine feasibility of rehabilitation. If either the owner or the structure does not meet eligibility requirements for program participation, the Housing Rehabilitation Specialist will reject the application. A written rejection notification will be sent to the owner via certified mail and the local government designated representative within ten (10) days stating the reason for rejection. If both the owner and the house appear to be eligible for program participation, the application/verification process continues. A work write-up with cost estimate is developed by the Housing Rehabilitation Specialist and approved by the property owner. The cost estimate for the job is considered confidential information until bid opening. If special financing arrangements (such as the owner covering excessive costs or general property improvement) are required or anticipated, arrangements must be made prior to bidding to prevent soliciting bids on a case that cannot be financed. When the case receives preliminary approvals, bids are solicited for the job. B. Bidding Bidding of potential cases is conducted by the Housing Rehabilitation Specialist. Owners review the pre -approved list of eligible contractors before their cases are sent out for bids. Owners have the right to remove any contractor(s) from the list of prospective bidders for their case, as long as at least two (2) eligible contractors are allowed to bid. The owner must be willing to justify the removal of contractor(s) as bidders. If these owner -requested contractors submit the contractor application and are approved by the designated representative and are otherwise eligible, they may be added to the bidders list and bid on the case. The administrator makes maximum effort to ensure participation by minority contractors. No housing unit owner, or occupant, or employee or immediate relative of the same, either personally or corporately, shall serve as a contractor or sub -contractor to be paid with CDBG funds for the rehabilitation of said building, nor shall they be paid for their own labor with CDBG funds for the rehabilitation of said building. A notice is sent to each eligible bidder to inform them of the job. Bidding notices will be posted at primary governmental buildings to the maximum practical extent. Newspaper advertising for individual jobs will not be performed, as contractors must be pre -qualified. Each contractor must attend a pre-bid conference held at the house to be rehabilitated, or inspect the house under the owner's supervision. Failure to do so will result in automatic rejection of his/her bid(s) for the house(s). 10 RESOLUTION 2007-131 Sealed bids will be opened at a public bid opening. The Housing Rehabilitation Specialist will generally recommend that the contract be awarded to the lowest responsible bidder within plus or minus fifteen percent (15%) of the cost estimate. The Indian River County and owner reserve the right to reject any and all bids and to award in the best interest of the owner and Indian River County. Each contractor must satisfactorily complete one job through the Housing Rehabilitation Program before receiving any additional contracts. No contractor will be allowed to have more than two (2) jobs under construction at one time without consent of the local government designated representative unless: 1. The anticipated date of commencement is after the scheduled, and estimated, date of completion of current jobs; or 2. The contractor has demonstrated, through past performance, his/her ability to satisfactorily complete multiple contracts in a timely manner thereby causing no impact on project and program completions. This rule may be waived by the Indian River County Commission if it is determined that there is an inadequate pool of qualified bidders, if the other bids are excessive, or if other extenuating circumstances arise. C. Contracting and Rehabilitation The Housing Rehabilitation Specialist presents each case to the Indian River County Affordable Housing Loan Review Committee before the DPL and contract are signed. The DPL amount, contract amount, contractor and owner eligibility are all approved by the designated representative. The rehabilitation contract is executed between the homeowner and the contractor when the rehabilitation DPL is closed, with a three (3) day recission period running simultaneously for both legal agreements. Rehabilitation Agreements (for DPL's) are executed by the Community Development Director authorized to act on behalf of the Indian River County Commission. The DPL and the Notice of Commencement are recorded immediately. The Program pays for recording of the Agreement. The filing of the Notice of Commencement shall be the responsibility of the County. The Notice to Proceed is issued to the contractor as soon as possible after the recission period elapses. When temporary relocation of the occupants is required, the Notice to Proceed will be delayed until the house is vacated. The contract time of performance (generally 30-45 days) begins with issuance of the Notice to Proceed. D. Inspections Periodic inspections of the rehabilitation construction are performed by the Indian River County and the Housing Rehabilitation Specialist throughout the contract period. These inspections are conducted to assure compliance with the contract standards for workmanship and materials, to detect any unauthorized deviations and to identify necessary changes to the contract work in its early stages. 11 RESOLUTION 2007-131 Inspection and approval of completed work must be conducted by the Housing Rehabilitation Specialist prior to the contractor's receiving partial or final payment. The owner's acceptance of the work is also required before payment is received. E. Change Orders Any additions to, deletions from, or changes in the rehabilitation contract work, time, or price must be approved in a written change order before the additional work is started. The change order is executed by the owner and contractor and is approved by the Housing Rehabilitation Specialist and the Community Development Director. Change order may be issued to correct code deficiencies or to obtain any other desired change in the work. CDBG funds can only be used for change orders that correct code violations. Other changes will be at the owner's expense. F. Payment Contracts of $10,000 or less will not be paid until the contractor has completed the job. Contracts in excess of $10,000 allow a partial payment upon satisfactory completion of 60% of the work, with a retainage of 20% of the completed amount. Completion of 61%-90% of the work allows a partial payment, less a retainage of 20% of the full contract amount. Depending on extenuating circumstances and contract balance, a second partial payment may be authorized at the recommendation of the Housing Rehabilitation Specialist, the Community Development Director, and the Administrator. Construction Completion Payment Schedule Percentage of Funds Paid Less than 60% 0% 60% 40% 100% 80% 100% After Certificate of Occupancy is issued and all punch list items are com leted Approval of a partial payment requires: a determination by the Housing Rehabilitation Specialist and the Community Development Director that the claimed percentage of completion of the work has been satisfactorily completed. Payment will be issued for the amount claimed less retainage depending on the physical progress as long as the contract funds remaining are sufficient to complete the work in the event of default by the contractor. 2. approval of work by the owner; and an affidavit from the contractor stating that either: (a) there are no claims -for unpaid goods and/or services connected with the job and all laborers, suppliers and subcontractors have received just compensation for their goods and services up to the date of the request (as evidenced by full or partial waiver of lien from subcontractors); or (b) a list of all unpaid parties and the amounts owed to each has been submitted with the request.. 12 RESOLUTION! 2007-131 The final payment approval requires: acceptance of all work by the property owner, the Housing Rehabilitation Specialist and the Community Development Director; 2. submission of all manufacturers' and other warranties (i.e., appliances, roofing, extermination, contractor's warranty covering the entire job for one year, etc.); 3. waives of liens from all subcontractors, all parties who were not paid when the contractor received partial payment, and from any other party supplying notice; 4. a certificate of occupancy or final approval from the Building Inspector to show compliance of the rehabilitation work with the locally adopted building (and other applicable) code requirements; 5. completion of all punch list items; and 6. an affidavit from the contractor stating that all bills have been paid and there are no claims for subcontracted jobs or materials, or any outstanding Notice to Owner. If the owner refuses to authorize payment due to a dispute with the contractor, the program Administrator may recommend disbursement without the owner's approval if the claim is shown to be without merit or inconsistent with policies and the goal of the program. Such disbursement shall be issued only after the Program Administrator has reviewed the facts and circumstances involved in the dispute and has determined that the owner's refusal to issue payment is without just cause. A record of all pertinent information shall be presented to the Citizen Advisory Task Force for their final determination. Sufficient documentation to this effect shall be placed in the case file. G. Disputes and Contract Termination Disputes, the owner's right to stop work, and termination of the contract by the owner or contractor shall be as authorized in the Contract for Rehabilitation. H. Follow -Up After completion of the contract, it is the owner's responsibility to notify the contractor in writing of any defect in the work or material. The owner is also requested to notify the Housing Rehabilitation Specialist or the Program Administrator of any complaints to the contractor so assistance in follow-up can be provided. If the contractor does not respond to the owner's written complaint within a reasonable time frame and in a satisfactory manner, the Administrator will verify the complaint. If the Program Administrator judges the complaint to be valid, he/she will send written request for warranty service to the contractor and a copy to the Community Development Director. The contractor will then take action as monitored by the owner and the Housing Rehabilitation Specialist. Upon receiving notice from the owner that the complaint has been satisfied, the Housing Rehabilitation Specialist will inspect the work and make such note in the case file. Failure to resolve complaints shall be justification for removing a contractor from participation with the program. 13 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 RESOLUTION 2007-131 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 Commission are: (a) 1 bedroom (800 sq ft) - $ 52,000.001 (b) 2 bedrooms (900 sq ft) - $ 54,000.00 (c) 3 bedrooms (1000 sq ft) - $ 60,000.00 (d) 4 or more bedrooms (1150 sq ft) - $ 74,000.00 If the existing home is inadequately sized, the replacement home will be sized to include the appropriate bedrooms needed to meet Section 8 and/or local housing code requirements for occupancy. In no case will the total assistance be greater than those limits listed above. Necessary site improvements, including water supply, sewage disposal, and clearance, will also be provided along with the actual dwelling replacement. Budgetary and scoring constraints, as well as priorities for assisting other households, may dictate that some homeowners will be offered less than the maximum amounts shown hereto, even if their demolition and replacement housing costs are above the offered amount. In these cases, homeowners must provide non-CDBG funds from other sources, or they may decline the offer and withdraw from the program. If the offer is declined, no CDBG funded demolition will occur. IX. CONTRACTOR LISTING The Housing Rehabilitation Program will establish and maintain a current listing of eligible contractors for bidding on all phases of the program. Only those contractors who are so listed will be considered for work on this program. Establishment of this list will include maximum effort to utilize local and minority contractors. A. Recruiting Contractors residing or maintaining offices in the local area will be recruited through public notice to all such contractors, as part of the local government's compliance with Federal Section 3 requirements. This special effort will be based upon the list of contractors licensed in Indian River County including residential, building, and general contractors. Letters sent to contractors, or advertisements placed soliciting them, will be placed in the appropriate program file. The contractor listing will include all local contractors who apply and are determined eligible based upon program qualification standards. If the pool of local contractors is inadequate to provide a sufficient pool of contractors willing and qualified to perform the rehabilitation work at prices that are considered reasonable and comparable to the prepared estimate, other contractors will be solicited. Maintenance of a pool of competitive, qualified, and capable contractors is essential to program completion. 15 RESOLUTION 2007-131 B. Contractor Eligibility In order to participate in the Housing Rehabilitation Program, a contractor must be certified as eligible by the Administrator of Housing Rehabilitation and by the Florida Department of Community Affairs. Basic contractor qualifications include: 1. Current license(s) with the appropriate jurisdiction; 2. A satisfactory record regarding complaints filed against the contractor at the state, federal, or local level. 3. Insurance: $100,0001$300,000 coverage for contractor's public liability (including accidental death and bodily injury), or $300,000 comprehensive coverage and $100,000 coverage of property damage (in addition to bodily injury), with a certificate of insurance from the insurer guaranteeing ten (10) day notice to the Housing Rehabilitation Program before discontinuing coverage. Workman's Compensation, as applicable, is also required; 4. A satisfactory credit record, including: (a) references from two (2) suppliers who have done business with the contractor involving credit purchases; and (b) references from three (3) subcontractors who have subcontracted with the contractor; and (c) the ability to finance rehabilitation contract work so all bills are paid before requesting final payment; 5. Satisfactory references from at least three (3) parties for whom the contractor has done construction. 6. Absence from any list of debarred contractors issued by the Federal or State DOL, HUD, or DCA; The Housing Rehabilitation Specialist will assure that current and past performance of the contractor are satisfactory based upon readily available information, and reserves the right to check any reliable source in establishing such determination. The Housing Rehabilitation Specialist will explain the contractor's obligations under Federal Equal Opportunity regulations and other contractual obligations at the pre-bid conference, Program procedures, such as bidding and payment are also explained to the contractor. C. Disqualification Contractors may be prohibited or removed from program participation for: 1. Poor workmanship, or use of inferior materials; 16 RESOLUTION 2007-131 2. Evidence of bidding irregularities such as low balling, bid rigging, collusion, kickbacks, and any other unethical practice; 3. Failure to abide by the work write-up, failure to complete work write-up (and bid) accomplishments, and any attempts to avoid specific tasks in attempts to reduce costs; 4. Failure to pay creditors, suppliers, laborers, or subcontractors promptly and completely; 5. Disregarding contractual obligations or program procedures; 6. Loss of license(s), insurance or bonding; 7. Lack of reasonable cooperation with owners, rehabilitation staff or the others involved in the work; 8. Abandonment of a job; 9. Failure to complete work in a timely manner; 10. Inability or failure to direct the work in a competent and independent manner; 11. Failure to honor warranties; 12. Ineligibility to enter into a federally or state assisted contracts as determined by the U.S. Secretary of Labor, HUD, or DCA; 13. Other just cause that would expose the Program or owner to unacceptable risk; 14. Failure to respond to a minimum of three (3) consecutive requests for bids; or 15. At the contractor's request. X. RELOCATION/DISPLACEMENT The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 does not apply to displacement under the Indian River County Community Development Block Grant Program; since the Indian River County does not acquire the vacated (demolished or rehabilitated) property and residents participate voluntarily. Therefore, relocation services will be provided in the Indian River County Anti -Displacement and Relocation Policy which covers situations in great detail. Household/property owners previously approved for proposed housing assistance may voluntarily withdraw their application for assistance, which must be confirmed in writing. If the Administrator determines the applicant to be ineligible for assistance, the Administrator shall send written notification to the applicant, stating that the application has been rejected and the reason for the rejection. 17 RESOLUTION 2007-131 XI. APPEALS/COMPLAINTS The Housing Rehabilitation Specialist, the Community Development Director, and the Program Administrator are authorized by the Indian River County to make all determinations of eligibility for assistance and level of assistance, scheduling of rehabilitation, demolition and relocation, and contract management. Citizens and/or contractors should issue complaints to the Housing Rehabilitation Specialist or the Program Administrator. For a complaint to be considered valid, it must be issued in writing within a period of 30 days of its occurrence. Responses also should be issued in writing. If the complaint is not satisfied with the Program Administrator's response, the issue must be presented in writing to the Indian River County Citizen Advisory Task Force (CATF). If the complaint cannot be resolved by the CATF, the Indian River County Commission will review the grievance and make a decision based upon program regulation, local policies, and availability of funds. Further appeals, if necessary, must be addressed to the Florida Department of Community Affairs. XII. PROGRAM INCOME No program income is planned to result from this program. Deferred Payment Loans will be monitored by the Housing Rehabilitation Specialist during the CDBG period of agreement. After the expiration of the agreement between the Indian River County and the State, the monitoring will be performed by the Community Development Director. If repayment of a DPL or program income is received during the CDBG agreement period, it will be used for additional rehabilitation as authorized by the Department of Community Affairs. Program income or DPL payment received subsequent to closeout will be returned to the Department of Community Affairs unless the state's program income regulations are changed. XIII. INCOME FROM HOMEOWNER'S INSURANCE, FEMA OR SBA A. INCOME RESULTING FROM STORM DAMAGE The property owner(s) shall document any payments received by the property owner as a result of damage sustained to the residence during Hurricane Wilma from either a private insurance provider, FEMA or the SBA was expended repairing the residence or the owner shall escrow with the local government the amount not expended repairing the residence and this amount shall be applied to the rehabilitation or hardening of the residence prior to any CDBG funding being expended. XIV. PROPERTY ACQUISITION POLICY A. Voluntary The Indian River County may purchase property with Community Development Block Grant funds for use in the Community Development Program. While most property acquisition must follow the procedures outlined in the Uniform Relocation and Real Property Acquisition Act, residential property to be used for relocation purposes shall be purchased on a voluntary basis. The Indian River County shall determine the property features needed and the budget available for the purchase defined in the contract agreement. A request for proposals will then be published in a 18 RESOLUTION 2007-131 local newspaper. The request will state the specifications and budget, and indicate that the purchase is voluntary. No displacement of renters may occur as a result of the program. Owners will not receive any relocation assistance so owner -occupants must waive the Uniform Act Rights. A voluntary acquisition occurs when real property is acquired from an owner who has submitted a proposal to the recipient for purchase of their property in response to a public invitation or solicitation of offers. The Indian River County Commission is committed to this mode of acquisition to the maximum practicable extent. Voluntary acquisition shall be permitted only if the property being acquired is not site specific and at least two properties in the community meet the criteria established by the local government for usage, location, and/or interest to be acquired. The Indian River County Commission prior to publication of a public notice or attendance of any local government representative at a property auction must approve all voluntary acquisitions in principle. A public notice must be published inviting offers from property owners. This notice must: 1. Accurately describe the type, size, and approximate location of the property it wishes to acquire; 2. Describe the purpose of the purchase; 3. Specify all terms and conditions of sale, including maximum price; 4. Indicate whether or not an owner -occupant must waive relocation benefits as a condition of sale; 5. Announce a time and place for offers to be accepted; and 6. Announce that local powers of condemnation shall not be invoked to acquire any property offered for which a mutually agreed to sale price cannot be reached. Property may also be acquired at auction. The Uniform Relocation Act does not apply to voluntary acquisitions. In each voluntary acquisition, a public solicitation shall occur. Offers shall be sealed and opened at the same time, in the same place, by a responsible official. Records of offers shall be kept. Appraisals are not required for purchases less than $2,500 if a mutually agreed to sales price can be reached. Clear title must be present in every transaction. The Indian River County Commission must decide at the time of approving the acquisition whether or not appraisals and review appraisals will be necessary and what the maximum permissible sales price will be. The decision to acquire will rest with the Indian River County Commission that can reject or accept any and all offers. Written records shall be maintained documenting decisions and rationale for selected courses of action. ILI RESOLUTION 2007-131 B. Non -Voluntary Acquisition Plan Acquisition of property (including easements and right-of-way) using federal funds shall occur in accordance with the Uniform Relocation Act of 1970 (as amended) and with any State and Federal regulations that may apply. Fundamental steps that occur in each purchase may vary case by case. However, in general terms, the following should take place: (1) source of funds and authority to acquire confirmed, (2) property/site identified and suitable, (3) legal description/survey/preliminary title search performed (services procured as necessary), (4) notice of intent to acquire sent to owner, (5) title companies solicited and retained after review received (title insurance amount and necessity determined in advance), (6) appraisal and review appraisal services solicited and appraiser retained, (7) appraisal received and sent for review, (8) offer to purchase and notice of just compensation sent owner, (9) owner contacted by attorney or other representative and contract formalized, (10) settlement costs calculated and closing date set, (11) closing contract conducted with funds changing hands, and (12) records of proceedings retained. The Uniform Relocation Act requires certain specific procedures such as some letters being sent certified. The CDBG Implementation manual provides a checklist that may be utilized in following each transaction to successful conclusion. In no case will CDBG funds be utilized which would create involuntary displacement. C. Timing/Planning Properties necessary for easements or acquisition shall be identified as early in the planning stage as is practicable. Every attempt shall be made to effect a design that it not wholly site dependent, that is, where two or more sites are suitable for the project. It is recognized this may not always be possible; however, a policy of minimizing single site alternatives is emphasized. In general terms, the voluntary acquisition process shall be utilized to identify possible sites early in the project. Sites shall be evaluated for suitability prior to the final design phase to the maximum practicable extent. As soon as alternative sites are identified and evaluated, applicable acquisition procedures should commence. Projects shall not normally be sent out for bids unless properties to be acquired or utilized for easements have been formally acquired or a commitment exists which is sufficiently firm and binding to be considered safe for the project to proceed with start up. The Indian River County Commission shall make the determination as to whether or not bidding, award, and start up may proceed to closing in the property. In those cases, where need for easements and/or acquisition is not identified until after the project is underway, procedures shall be expedited to the maximum practicable extent and utilization of funds, the value of which would be unrecoverable if the transaction did not occur, minimized. 20 RESOLUTION 2007-131 This Housing Rehabilitation/Replacement Policies and Procedures Manual is adopted this 18th Day of September , 200 7 . Board of County Commissioners of Indian River County BY: Commissio r Gary C. Wheeler, Chairman Board of C unty Commissioners BCC Approved: September 18. 2007 21 ATTEST BY: � '0G wY7 •rey i . Barton Clerk APPROVED AS TO FORM AND LEGAL SUFFICIENCY GEORGE A- GLEN ASSISTANT COUNTY ATTORNEY RESOLUTION 2007-131 Appendix "A" Point Values to be Used in Ranking Applicants Priority will be given to applicants based on the following table: Priority Point Value Homes that sustained documented damage from Hurricane Wilma. 50 Homes which are owned and occupied by Very Low Income household where 40 the residence does not currently meet the County's hardening requirements but otherwise meet all local housing code and Section 8 Minimum Property Standards or is being addressed by the County with other funding to meet all local housing code and Section 8 minimum housing standards. Homes which are owned and occupied by Low Income household where the 35 residence does not currently meet the County's hardening requirements but otherwise meet all local housing code and Section 8 Minimum Property Standards or is being addressed by the County with other funding to meet all local housing code and Section 8 minimum housing standards. Homes which are owned and occupied by Very Low Income household where 30 the residence does not currently meet the County's hardening requirements but otherwise contains only minor violations of the local housing code and/or Section 8 Minimum Property Standards. Homes which are owned and occupied by Low Income household where the 25 residence does not currently meet the County's hardening requirements but otherwise contains only minor violations of the local housing code and/or Section 8 Minimum Property Standards. Homes which are owned and occupied by Very Low Income household where 20 the residence does not currently meet the County's hardening requirements but contains major violations of the local housing code and/or Section 8 Minimum Property Standards but is still repairable. Homes which are owned and occupied by Low Income household where the 15 residence does not currently meet the County's hardening requirements but contains major violations of the local housing code and/or Section 8 Minimum Property Standards but is still repairable. Homes which are owned and occupied by Very Low Income household where 10 the residence does not currently meet the County's hardening requirements and contains major violations of the local housing code and/or Section 8 Minimum Property Standards and must be replaced. Homes which are owned and occupied by Low Income household where the 5 residence does not currently meet the County's hardening requirements and contains major violations of the local housing code and/or Section 8 Minimum Property Standards and must be replaced. 22 RESOLUTION 2007-131 Appendix "B" Section 8 Income Limits Persons Per Family Households Income Limit Very Low Income Low Income 1 $ 11,650.00 $ 31,100.00 2 $ 13,300.00 $ 35,500.00 3 $ 15,000.00 $ 39,950.00 4 $ 16,650.00 $ 44,400.00 5 $ 18,000.00 $ 47,950.00 6 $ 19,300.00 $ 51,500.00 7 $ 20,650.00 $ 55,050.00 8 +Plus $ 22,000.00 $ 58,600.00 Indian River County's Median Household Income = $54,100 F:\Community Development\Users\CDBG\2007 CDBG DR - Wilma\HAP\Housing Assistance Plan Revised 09-04-08 v2.doc 23