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HomeMy WebLinkAbout2012-006ORDINANCE NO. 2012- 006 AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA CREATING PART 2 OF CHAPTER 308, INDIAN RIVER COUNTY NEIGHBORHOOD STABILIZATION PROGRAM (NSP) ACQUISITION, REHABILITATION, AND SALE PROCESS; PROVDING FOR ESTABLISHMENT OF PROCEDURES FOR COUNTY ACQUISITION, REHABILITATION AND SALE OF FORECLOSED OR ABANDONED PROPERTIES WITH NSP FUNDS; AND PROVIDING FOR REPEAL OF CONFLICTING PROVISIONS; CODIFICATION; SEVERABILITY; AND EFFECTIVE DATE. WHEREAS, The United States Congress enacted the Housing and Economic Recovery Act of 2008, providing for emergency assistance for the redevelopment of abandoned and foreclosed homes; and WHEREAS, the Neighborhood Stabilization Program (NSP) was a part of the Act; and WHEREAS, Congress authorized funding in the amount of $2,000,000,000 in order to carry out the purpose of the Act; and WHEREAS, Indian River County, in 2009, was awarded $4,680,825 in Neighborhood Stabilization Program funds in the form of a Community Development Block Grant; and WHEREAS, the NSP permitted participating Counties to enter into agreements with qualified sub - recipients such as the Indian River County Housing Authority so that the Housing Authority could participate in the Neighborhood Stabilization Program and acquire, rehabilitate, and sell foreclosed or abandoned homes; and WHEREAS, the Indian River County Housing Authority has terminated its NSP agreement with the County, however the County desires to continue participating in the NSP and acquire, rehabilitate, and sell foreclosed or abandoned homes which duties were formerly performed by the Housing Authority; and WHEREAS, the County will acquire title to NSP properties in its own name only for the amount of time it takes to rehabilitate the properties before they are sold to low or moderate income households which are the only purchasers who are eligible to buy the NSP houses WHEREAS, ordinarily, a County may sell real property only via the competitive bidding process found in § 125.35, Fla. Stat. (2011), however, the competitive bidding process does not apply to NSP home sales because • the sale is conducted pursuant to a federal act which supersedes state and local law • the homes may be sold only to low or moderate income households which negates the need for any bidding process • the Housing and Economic Recovery Act of 2008 and the American Recovery and Reinvestment Act of 2009 both recite that the Acts were emergency in nature, which negates the competitive bidding process WHEREAS, in order to run the NSP in a fair and equitable manner in compliance with the County Comprehensive Plan and in the abundance of caution, the Board desires to set forth in ordinance the processes for the acquisition, rehabilitation and sale of foreclosed or abandoned homes ORDINANCE NO. 2012- 006 NOW, THEREFORE, BE IT ORDAINED by the Board of County Commissioners of Indian River County, Florida, that: SECTION 1. Findings The Board finds that the above "WHEREAS" clauses are true and correct, and hereby incorporates such clauses as findings of fact. SECTION 2. Creation of Part 11 of Section 308 Title III, Police Power, of the Code of Indian River County is hereby amended to create Part II Section 308, as follows: Section 308.11— Title This Part of Chapter 308, the terms and the provisions contained herein, shall be known as the Indian River County Neighborhood Stabilization Program Acquisition, Rehabilitation, and Sale Procedures and Standards. Section 308.12 — Purpose and Intent Since 2009, Indian River County has participated in the Neighborhood Stabilization Program, NSP, as created by the Housing and Economic Recovery Act of 2008 and the American Recovery and Reinvestment Act of 2009. The purpose of this chapter is to set forth procedures and standards whereby Indian River County can acquire foreclosed or abandoned properties using Neighborhood Stabilization Program (NSP) Funds, rehabilitate those properties with NSP funds, and sell those properties to qualifying low and moderate income households. As such, this chapter provides for: (1) Establishment of competition and qualification standards for county acquisition, rehabilitation and sale of foreclosed or abandoned properties in accordance with the NSP; (2) Provisions for notice to participants in the NSP (3) Establishment of a form and manner to acquire property; (4) Establishment of negotiation or qualification standards that must be met in order for a person to buy a property under the NSP (5) Establishment of a process to provide notice to potential qualified buyers for NSP rehabilitated housing Section 308.13 — Establishment of Procedures for County Acquisition of Foreclosed or Abandoned Properties with NSP Funds (1) The Community Development Director is hereby designated as the person responsible for administering the County's Neighborhood Stabilization Program. In this capacity, the Community Development Director shall comply with all procedures in the Community Development Block Grant (CDBG) Neighborhood Stabilization Program (NSP) Housing Assistance Plan (HAP). (2) Consistent with NSP guidelines, the County will acquire foreclosed or abandoned properties to rehabilitate and sell or rent to qualified low and moderate income households. All properties acquired through the NSP will be located in the designated NSP target area and will be acquired at no more than 99% of current appraised value. (3) To acquire properties, the County will work with qualified local real estate brokers, financial institutions, and federal housing agencies. For each potential purchase, the County will undertake all applicable pre- acquisition due diligence activities. This will involve obtaining surveys, appraisals, inspections, and title reports, as applicable. (4) In acquiring NSP properties, the Community Development Director is hereby authorized to execute purchase contracts, due diligence contract work orders, and other applicable documents. On a regular 2 ORDINANCE NO. 2012- 006 basis, the Community Development Director shall provide an NSP acquisition status report to the Board of County Commissioners. Section 308.14 — Establishment of Procedures for County Rehabilitation of Properties Purchased with NSP Funds. (1) For each NSP property acquired by the County, an inspection of the property will be conducted to determine the specific rehabilitation work required. That inspection will be based on the County's NSP Construction Specifications document. Based on the inspection report prepared for the property, a scope of work will be developed, and bid documents will be prepared. (2) To procure contractors for NSP rehabilitation work, the County will comply with applicable NSP regulations and Indian River County Policies and Procedures for CDBG Programs and Projects. For each NSP rehabilitation project, the County will solicit bids from those firms on its list of pre -qualified contractors. A contract will then be awarded to the lowest, most responsive bidder. (3) The Community Development Director is hereby authorized to execute rehabilitation contracts with NSP contractors. Those contractors will be responsible for obtaining all required permits and completing all items in the applicable scope of work within the timeframe established in the contract. Once the work is completed and inspected, releases of liens are provided, and invoices are submitted, the contractors will be paid. Section 308.15 — Establishment of Criteria for the Sale of NSP Properties that Constitute an Alternative Property Disposition Procedure to Sections (1) and (2) of Chapter 125.35, F.S. (1) Pursuant to NSP requirements, the County will sell houses acquired with NSP funds to qualified low and moderate income households. In so doing, the County will comply with the Resale Property Disposition criteria in the County's CDBG NSP HAP. (2) To be eligible to purchase an NSP house, a buyer must meet the qualification standards listed in the HAP. Specifically, a potential buyer must have an income in the low or moderate income category, have the minimum downpayment amount, and qualify with a financial institution for a principal mortgage in an amount adequate to purchase an NSP house with county/NSP gap financing assistance. For each prospective NSP buyer, the County will conduct an income qualification assessment. NSP houses will then be sold on a first come/first served basis. (3) The county will provide notice of intent to sell NSP houses in several ways. These may include, but not be limited to, newspaper advertisements, brochures, multiple listing service, and website notice. (4) Once the rehabilitation of an NSP house is complete, the county will have the rehabilitated house appraised. The appraised value will then be the house's selling price, except that the selling price shall not exceed the combined purchase price and rehabilitation cost. Once the selling price is set, the county will sell the house at the selling price to the first qualified buyer. If, however, a new appraisal indicates that the house's value is less than the selling price, the house will be sold for the new appraised value. The manner of acquisition will be by warranty deed from the county. (5) All sales of NSP properties will comply with the County's comprehensive plan and zoning. (6) The Chairman of the Board of County Commissioners is hereby authorized to execute deeds and other documents associated with the sale of NSP properties. SECTION 3. Repeal of Conflicting Provisions All previous ordinances, resolutions, or motions of the Board of County Commissioners of Indian River County, Florida which conflict with the provisions of this ordinance are hereby repealed to the extent of such conflict. SECTION 4. Severability 3 ORDINANCE NO. 2012- 006 It is declared to be the intent of the Board of County Commissioners that, if any provision of this ordinance and therefore the Indian River County Comprehensive Plan Amendment is for any reason finally held invalid or unconstitutional by any court of competent jurisdiction, such provision shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining provisions. SECTION 5. Effective Date The effective date of this ordinance shall be upon adoption. This ordinance was advertised in the Press -Journal on the 16 day of April, 2012, for a public hearing to be held on the 1 st _ day of may 2012 at which time it was moved for adoption by Commissioner_ Solari seconded by Commissioner O'Brvan and adopted by the following vote: Gary C. Wheeler, Chairman Nay Peter D. O'Bryan, Vice Chairman —Aye Bob Solari, Commissioner Aye Wesley S. Davis, Commissioner N;;y Joseph E. Flescher, Commissioner Aye �pMMISsj0 BOARD OF COUNTY COMMISSIONERS • = J��y.•• ••:J'F,p� OF INDIAN RIVER COUNTY b • ; BY: Gary C heeler, Chairman s ',�iqy •'Qro FR COQ ••••' ATTEST BY: . C' . .000%, ••• Je frey K. Barton, Clerk This ordinance was filed with the Department of State on the following date: APPROVED AS TO FORM AN LEGAL SUFFICIENCY A an S. Polachwich, ounty Attorney 4FACommunityDcveeiopmeot�CDl3 AS TO PLANNING MATTERS "\2010N Development Director ter 316 NSP Acquisiton Sale and Rehabilitation Ordinance 2012.doc