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Community Development Block Grant
(CDBG)
Housing Assistance PlMn
For
INDIAN RIVER COUNTY
FFY
2018-2022
July 10, MOTO
INTRODUCTION
4
II COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND DISASTER RECOVERY
INITIATIVE (DRI) PROGRAMS OPERATIONAL POLICES AND PROCEDURES 5
A. Housing Program Objectives
B. Key Terms
C. Common Housing Program Types
D. Purpose of Policies and Procedures
E. Administrative Program Policies and Procedures
F. General Program Policies
G. Priority of Assistance
H. Applicant Intake
I. Application Process and Applicant Eligibility
J. Applicant Homeowner Eligibility Standards
K. Duplication of Benefits
L. Applicant Household and Income Verification
M. Household Income
II. COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND DRI PROGRAMS -
REHABILIATION AND CONSTRUCTION POLICES AND PROCEDURES 30
A. Identification of Units
B. Eligible Property Types
C. Scope of Rehabilitation Assistance
D. ContractorNendor Listing
E. Contractor/Vendor Eligibility
F. Contractor Disqualification
G. Eligibility Inspection
H. Bidding
I. Deferred Payment Loans
J. Rehabilitation and Replace Procedures
K. Structural Requirements
L. Structural Integrity
M. Cost Feasibility
N. Clearance
O. Rehabilitation/Demolition Differences
P. Temporary Relocation
Q. Contracting and Commencement of Construction
R. Construction Progress Inspections
S. Change Orders
T. Payment
U. Disputes and Contract Termination
V. Project Closeout
W. Program Compliance and Monitoring
III. CDBG DRI CATEGORY HOUSING REHABILIATION PROGRAM 50
A. Housing Rehab or Demo/Replace Activity- Objective
B. Housing Rehab or Demo/Replacement - Financing
C. Housing Rehab or Demo/Replacement - Eligibility
D. For conventionally ("site") built structures and modular homes
E. For mobile homes built after 1996
F. Temporary Relocation
G. Applicant Requirements
H. Program Benefits
I. Eligible Properties
J. CDBG, DRI rehab and demo/replacement activity - financing
K. Down Payment Assistance Activity - Construction Process
L. Down Payment Assistance Activity - Size of Units
M. Down Payment Assistance Activity - Down Payment Allowances
APPENDIX A - DEFINITIONS
57
APPENDIX A - RESOURCES 60
INTRODUCTION
This manual is a guide for implementing the housing strategies and related
aspects of Indian River County's (henceforth "County") Community Development
Block Grant (CDBG) Housing Programs, including the Regular CDBG categories
(henceforth "CDBG"), and the Community Development Block Grant Disaster
Recovery Initiative (henceforth "DRI"). The responsibilities of the County, the
Applicant homeowner, construction contractor, the Program Administrator (PA)
and the Housing Rehabilitation Specialists (HRS) are specifically addressed in
this manual.
The Program Administrator (PA) shall be the County Designee for oversight of
this Housing Assistance Plan (HAP) and Procedures, and his/her duties are
addressed herein. The PA shall approve all HRS work, including any Consultant
or contract work, such as grants administration or project delivery services. The
PA makes all final recommendations and decisions as to awards, monitoring
reports, policies or other work generated by contractors or consultants. The
major focus of this manual is on housing finance, housing rehabilitation,
demolition/clearance, procurement and replacement of eligible, HRS -approved
dwellings. Relocation of households is also covered to a limited extent, as
described herein. The Anti -Displacement Policy should be consulted if
displacement or permanent relocation becomes a concern. Except under
Federally Declared Disasters and similar extenuating circumstances, and by
waiver of the County Commission and approval by the Florida Department of
Economic Opportunity (FDEO), no CDBG housing activity shall be undertaken
that causes displacement of legal residents from a dwelling unit. Permanent
relocation shall only be considered for replacement units where the existing lot is
not suitable for the replacement unit or is unsafe for the residents. Eminent
domain shall not be addressed using County CDBG Housing funds.
The goal of the CDBG program(s) is to meet the U.S. Department of Housing
and Urban Development (HUD) CDBG (DRI where applicable) National
Objectives including but not limited to the rehabilitation of substandard units, and
the rehabilitation of units affected by natural disasters, located within the
unincorporated limits of the County and to bring them up to a minimum
acceptable living standard. This standard shall include the HUD Section 8
Minimum Housing Quality Standards (Section 8 HQS), the current Florida
Residential Building Code and other relevant local codes (whichever is most
stringent for each code -related item). This goal will be achieved through the use
of CDBG funds to contract for the required rehabilitation construction. The
rehabilitation units under the CDBG regular category and DRI categories to be
assisted shall be owner -occupied.
DISCLAIMER: Not all provisions apply to all programs herein. County staff, or
designee, reserves the right to make final interpretation of this plan. Further, in
the event of any conflict between or among any provision(s) herein applicable
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Florida Administrative Rules, statutes, or HUD regulations the more stringent
may be applied by County staff or designee.
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND DRI
PROGRAMS OPERATIONAL POLICES AND PROCEDURES
All procedures outlined in this section are applicable to all CDBG categories
including Regular Category Housing Rehabilitation, and the Disaster Recovery
Initiative Housing Rehabilitation and Assistance Category. The operational
procedures in this section govern all categories, unless otherwise specified, and
may be amended or expanded by any requirements set forth in the individual
strategies and the different programs and categories may require.
A. Housing Program Objectives
Maximizing community improvement and benefit should be the goal of any
housing program on its way to meeting national and/or State funding objectives.
The objectives of the County's Housing Rehabilitation Programs include but are
not limited to:
For all CDBG Programs, to assist and encourage the revitalization of very
low, low to moderate income neighborhoods through a Housing
Rehabilitation and Deferred Payment Loan (DPL) Program.
a. AMI means Area Median Income
b. VLI shall mean very low income or below thirty percent (30%) of AMI
c. LI shall mean low income or between thirty percent (30%) and fifty percent
(50%) of AMI
d. LMI shall mean low -to -moderate income or not to exceed eighty percent
(80%) AMI
e. OI shall mean over income for the particular income for which an Applicant
is applying for benefit under the list above. OI households cannot benefit
from CDBG direct assistance (in this case housing).
2. For DRI Only, to encourage the revitalization of very low, low to moderate
income neighborhoods affected by declared natural disasters through a DRI
Housing Rehabilitation and Deferred Payment Loan (DPL) Program.
3. For CDBG and DRI programs, to remove unhealthy or hazardous conditions
(slum and blight) in VLI and LMI households.
4. To use Community Development Block Grant rehabilitation grant funds as a
catalyst to encourage residents of VLI and LMI neighborhoods to improve
their community.
5. For CDBG and DRI programs, to address urgent community needs.
everyday operations and practices utilized in reaching the goals of the Housing
Assistance Programs. Further it is the County's policy to:
Assure that all programs are 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. Assure that no member of the Congress of the United States, the Citizen's
Advisory Task Force (CATF), County Commission, or any other elected
official shall serve on the CATF or share in proceeds or benefits of CDBG
funded rehabilitation work. This monetary benefit would constitute a conflict
of interest.
3. With regard to regular category CDBG and DRI categories, housing
rehabilitation will be the first priority, with housing replacement units being
addressed when program funds are available.
E. Administrative Program Policies and Procedures
Housing Assistance Plan (HAP)
As required by Federal and State rules and requirements, this Housing
Assistance Plan was drafted for approval by the County Commission to be
used as a written guide for implementing CDBG and DRI program specific
housing strategies. Including but not limited to Applicant intake procedures,
maximum funding amounts, and specific program inclusions and exclusions.
2. Citizen Participation (See the County's Citizens Participation Plan)
As required by specific program rules and requirements, public hearings will
be held to provide information and discuss proposed activities to be
undertaken, as well as address questions or concerns from the public. All
public hearings and workshops shall be advertised in accordance with the
appropriate funding agency (HUD, FDEO) requirements.
3. Conflict of Interest
The adherence to the rules and regulations in regard to Conflict of Interest is
mandatory. All Applicants that may have a business or familial relationship
with a member of the County Commission, CATF, HRS, PA, or participating
construction contractors must fully disclose this relationship on the Application
and defiantly before a construction contract is executed. In addition, all
Applicant names must be disclosed at the regular meeting of the Board of
County Commission and the CATF as the application process proceeds and
these names must be included in the minutes of both the County Commission
and the CATF meetings. County Commission and CATF members must
disclose any relationship with an Applicant and must abstain from any vote
related to that Applicant. Any cases of conflict of interests must be made
known at a meeting of the County Commission. Before an Applicant with a
potential or real conflict as described in 24 C.F.R.570.489 (h)(2), is given final
approval for participation the County must notify FDEO in writing. Prior to the
expenditure of housing grant funds, the County must receive written
notification of FDEO's approval of the waiver of conflict of interest, in
accordance with C.F.R. Section 570.489 (h)(4). If this process is not followed
the County and/or the Applicant may be liable for returning the funds
expended to the program.
County employees that submit an application for rehabilitation assistance and
who are involved in the decision making process related to the CDBG
program or are involved in the financial approvals of this program must
identify their conflict of interest at the time of application.
The Federal requirements are found in 24 CFR 85.36 (b) (3) and 24 CFR
570.489(h). The State of Florida requirements are found in Chapter 112.311 —
112.3143 of the Florida Statutes. A Conflict of Interest is defined as a
relationship or circumstances whereby a person or organization exercises
functions or responsibilities for funded activities through which they, their
relatives, or know associates obtain or appear to obtain a financial benefit.
Two types of conflicts are noted, those being beneficiary and procurement.
1. A beneficiary conflict of interest would involve any direct benefit, such as
housing rehab, utility hook-up or fagade renovation. The conflict would
occur when benefits are awarded to anyone with a role in the CDBG and
or DRI program approval process, to include but not limited to, a member
of a CATF, PA, County officials and Commission members. There are
however exceptions to this rule which are explained in 24 CFR 570.611
(d). To request a waiver, the Applicant through the HRS and PA must be
submitted in writing to the County for approval, who must then submit the
request to FDEO for final approval. Any costs incurred prior to FDEO
approval are unallowable. There are no retroactive waivers.
2. A procurement conflict of interest exists if there appears to be a
relationship between a funded activity and County officers, their
employees or agents, any member of their immediate family or any
organization that employs or is about to employ, any of the afore-
mentioned individuals. This conflict covers all aspects of the procurement,
from solicitation, to award, to administration to include the writing of the
Applicant Selection Criteria and in the Priority of Assistance, evaluating
proposals and negotiating terms. The affected person must not participate
in the procurement process in any manner; the level of conflict is
irrelevant. Any conflict or appearance of a conflict requires non -
participation. A procurement conflict cannot be waived.
4. Fair Housing (See the County's Fair Housing Policy)
The County and all its Contractors, Consultants and vendors receiving CDBG
and/or DRI grant funds shall comply with Title VIII of the Civil Rights Act of
[to]
1968, Restoration Act of 1987, Sec. 800 [42 U.S.C. 3601 note] (Fair Housing
Act), as amended, 24 CFR Part 92.252, Fair Housing Rents, Title VI of the
Civil Rights Act of 1964, Housing for Older Persons Act of 1995 (HOPA), Fair
Housing Amendment Act of 1988, Age Discrimination Act of 1975, HCD Act of
1987, as amended, Section 109 of Title 1 of the Housing and Community
Development Act of 1974 (570.487 and 570.495(b), Section 504 of the
Rehabilitation Act of 1973, Americans with Disabilities Act of 1990 (ADA),
Executive Order 11063, Executive Order 11259. Indian River County also will
comply with 42 U.S.C. § 3604(f) (3), to ensure that the design and
construction of covered multifamily dwellings include features of accessible
design for disabled persons.
It is important to ensure that the housing program does not discriminate
against any class of potential Applicants. All persons must be treated equally
and not discriminated against on the basis of race, color, religion, sex,
national origin, familial status, and disability, when serving housing needs.
The Fair Housing Act is the term commonly used to describe the provisions of
Title VIII of the Civil Rights Act of 1968, as amended in 1988. The Act states
that it is unlawful to discriminate on the basis of race, color, religion, sex,
national origin, familial status, and disability. In addition to what is covered
under the Federal act, Florida law also prohibits discrimination on the basis of
material status.
This language should be included in all program information announcements
and advertisements relating to the housing program. It is important for
housing administrators to be familiar with Fair Housing Laws, as well as the
more subtle forms of discrimination.
Where possible, application materials and handouts for Applicant meetings
should be in Spanish, and/or a multi-lingual representative of the organization
receiving applications is present to assist Spanish speaking Applicants.
It is the policy of the County to ensure that all state and federally funded
projects and activities prohibit discrimination in the sale, rental, and financing
of dwellings, and in other housing -related transactions, on the basis of race,
color, religion, sex, national origin, familial status, and disability (including
children under the age of 18 living with parents or legal custodians, pregnant
women, and people securing custody of children under the age of 18).
5. Equal Opportunity Employment: (See the County's EEO Policy)
It is the policy of the County to use state and federal grant funded programs
to provide services to very low, low to moderate income Applicants. At no
time will employment opportunities provided through the expenditure of state
or federal funds or otherwise be denied on the basis of race, color, religion,
sex, national origin, familial status, and disability. Notice of the policy will be
placed in plain sight on the job location for the benefit of interested parties
and all Contractors, Consultants, vendors will be notified. All Equal
Employment Opportunity Posters will be displayed as required by state and
federal guidelines.
Equal Employment Opportunity protects all employees and the potential
employment of all Applicants of the County and any Contractors, Consultants,
and vendors receiving grant funds. These requirements apply at all times for
the County or Contractors receiving state or federal grant funds.
6. Section 3 Employment Opportunities: (See the County's Section 3 Policy)
The County and/or Contractors, Consultants, and vendors receiving grant
funds shall comply with the Housing and Urban Development Act of 1968 (12
U.S.C. 1701u) (as amended), Section 3 Statute -12 U.S.C. 1701u, Section 3
Regulation -24 CFR Part 135, 24 CFR 85.36(B)(8).
It is the policy of the County to use its best efforts to afford Section 3
residents and Section 3 business concerns the maximum practicable
opportunity to participate in the performance of all grant funded contracts. The
County may rely on written representations by businesses and residents
regarding their status as Section 3 in lieu of an independent investigation.
Every effort shall be made to notify Section 3 residents and businesses
residing or maintaining offices in the local area through public notices, as part
of complying with Section 3. Documentation of such efforts is required.
7. W/MBE Employment Opportunities: (See the County's W/MBE Policy)
The County and/or Contractors, Consultants, and vendors shall comply with:
Public Law 95-507, The Small Business Act, and Executive Order 11625 of
1971. It is the policy of the County to use its best efforts to afford small
businesses, minority business enterprises, and women's business enterprises
the maximum practicable opportunity to participate in the performance of all
grant funded contracts.
8. Permanent Relocation / Displacement:
General:
This activity involves replacement of an eligible owner -occupied unit. The
County Commission or its PA will decide with the HRS on a case-by-case
basis whether to utilize a slab "site built" replacement unit, a prefabricated
unit, or a modular home. Decision items will include budget, zoning,
replacement requirements, cost estimates, and a number of other items that
may vary on a case-by-case basis.
Once the decision is made, the HRS prepares bid specifications based on
Applicant homeowner input from review of available plans from the
Contractor. Bidding contracting and inspections then proceed as in the
rehabilitation process.
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For all CDBG categories, permanent relocation (due to flood plain, non-
conforming lot, hazards, etc.) 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. The units
must be redeveloped (replaced) on site or elsewhere due to problems with
the site. Homeowner eligibility requirements are the same as for
rehabilitation. Further policies are included in the local Anti -displacement and
Relocation Policy. In this HAP, demolition -relocation shall refer to
replacement housing to build a new unit in place of one that must be
demolished for reasons outlined in this HAP and as recommended by the
HRS.
The Housing Program will comply with the Uniform Relocation Act (URA) and
Real Property Acquisition Policies Act of 1970. Except as provided for herein
under a Federally Declared Disaster (and then only by Commission Waiver
and FDEO approval), the County will not engage in any project under this
HAP that displaces any legal, URA -covered occupants. When provided for in
the program budget, for homeowner occupied housing assistance, temporary
relocation services can be made available to qualified persons who need to
relocate while rehabilitation work is completed. The maximum assistance
amount and documentation required to show proof of use of funds shall be
determined by the County Anti -Displacement and Relocation Policy that
covers those situations in great detail. .
Applicant homeowners previously approved for proposed housing assistance
may voluntarily withdraw their application for assistance, which must be
confirmed in writing. If the PA determines the Applicant to be ineligible for
assistance, the HRS shall recommend, and the County will send written
notification to the Applicant stating that the application has been rejected and
the reason for the rejection.
9. Property Acquisition: (See the County's URA Policy)
In the event the housing program needs or seeks to acquire property to
address a specific community need, some fundamentally required steps will
need to occur in order to ensure compliance and the success. Each
purchase, or acquisition, may vary case by case.
However, in general terms, the following should take place:
1. Confirm source of funds and authority to acquire,
2. Identify the property/site and determine its suitability,
3. Perform legal description/boundary survey/preliminary title search
(services procured as necessary),
4. Send notice of intent to acquire to Owner,
5. Solicit appraisal services and retain Appraiser,
6. Where recommended by the HRS or program required, solicit review
appraisal services and retain review appraiser,
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7. Receive appraisal review (when required), then solicit and retain Title
Company (ies) (title insurance amount and necessity determined in
advance),
8. Send offer to purchase and notice of just compensation to Owner of no
less than the appraised fair market value,
9. Obtain Homeowner(s) acceptance of offer in writing
10. Finalize contract for purchase with Owner after County legal reviews and
approves,
11. Company calculates settlement costs and closing date is set,
12. Closing conducted with funds changing hands and,
13. Records of proceedings retained.
10. Voluntary Acquisition:
The County may purchase property with CDBG/DRI funds for use on eligible
activities. While 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 only on a voluntary
basis.
The County shall determine the features needed and the funds available for
land purchases in the State Sub -recipient agreement(s). When property is
needed or required for CDBG/DRI activities, solicitation procedures of the
County shall be followed. The request will state the specifications and
budget, and indicate that the purchase is voluntary. All property acquired by
any CDBG/DRI funds shall be meet all the requirements of the Florida CDBG
program and shall be used only for eligible CDBG/DRI activities.
No displacement of tenants (or other legal occupants) will occur as a result of
any of the County CDBG Housing programs. For lease property, owners do
not receive any relocation assistance. Owner -occupants under rehabilitation
must voluntarily participate.
A voluntary acquisition occurs when real property is acquired from an owner
who has submitted a proposal to the County for purchase of their property in
response to a public invitation or solicitation of offers. The 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 (2) properties in the community meet the
criteria established by the County for usage, location and/or interest to be
acquired. The 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.
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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 will be
followed, but all acquisitions shall be voluntary and without displacing legal,
URA eligible occupants.
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 County official.
Records of offers shall be kept. Appraisals are not required for purchases less
than two thousand five hundred dollars ($2,500) if a mutually agreed -to sales
price can be reached. Clear title must be present in every transaction. The PA
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 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.
11. Non -Voluntary Acquisition Plan: (when applicable under DRI for emergency
purposes) (not applicable under CDBG regular housing categories)
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) appraisal services solicited and appraiser retained, (6) where
recommend by the HRS or program required, review appraisal services
solicited and appraiser retained (7) appraisal received and sent for review, (8)
title companies solicited and retained after review received (title insurance
amount and necessity determined in advance), (9) offer to purchase and
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notice of just compensation sent to owner, (10) owner contacted by attorney
or other representative and contract formalized, (11) settlement costs
calculated and closing date set, (12) closing conducted with funds changing
hands and, (13) records of proceedings retained.
The Uniform Relocation Act requires certain specific procedures such as
some letters being sent via certified mail. The CDBG implementation manual
provides a checklist that may be utilized in following each transaction to
successful conclusion. County CDBG/DRI housing funds cannot be used in
any way that would cause involuntary displacement. (Refer to the County's
separate Anti -Displacement Policy on this subject.)
12.Timing and 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 affect
a design that is 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 PA shall make the determination
as to whether or not bidding, award and start-up may proceed to closing on
the property.
In those cases where needed 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.
The County's Anti -displacement and Citizen Complaint Policies shall be
followed in these cases.
13. Appeals / Complaints: (See the County's Grievance Policy)
The HRS and the PA are authorized by the 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 HRS or the PA. For a complaint to
be considered valid, it must be issued in writing within a period of ten (10)
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calendar days of its occurrence. Responses also shall be issued in writing.
The County's Citizen Complaint and Grievance Policy, Citizen Participation
Plan and Fair Housing Ordinance shall be adhered to in addressing any
complaints.
If the complainant is not satisfied with the PA's response, the issue must be
presented in writing to the BCC Chair and/or County Administrator) in
accordance with the Complaint Procedures set forth in the County's CDBG
policies and procedures. Further action on any complaints shall be governed
by County CDBG policies, including Citizen's Participation and Grievance
Procedures. Any appeals will be made according to the County CDBG
policies and procedures. Further appeals, if necessary, must be addressed to
the Florida Department Economic Opportunity (FDEO).
14. Fraud
All levels of housing program management are responsible for the detection
and prevention of fraud, misappropriations, waste, and other inappropriate
conduct as it pertains to the use of specific program funding.
Fraud is defined in this document as a willful or deliberate act or failure to act
with the intention of obtaining an unauthorized benefit. Any fraud that is
detected or suspected will be reported immediately to the PA, who will
conduct or employ on his/her behalf to conduct an objective and impartial
investigation into the fraudulent activity, along with other applicable
departments and/or law enforcement agencies, as deemed necessary or
appropriate. Any individual found to have engaged in fraudulent activity, as
defined by this policy, is subject to disciplinary action as program regulation
and the law will allow, which may include program, service, and/or
employment dismissal, as well as prosecution by appropriate law
enforcement authorities, when appropriate.
15.Actions Constituting Fraud:
As used in this policy, the term "fraud" includes, but is not limited to, the
following:
1. Any dishonest or fraudulent act.
2. Forgery or alteration of any financial document used for the purpose of
program eligibility.
3. Deliberately including and/or providing false information from the program
assistance application.
4. Deliberately withholding any required information requested to properly
determine eligibility status, including all assets, liabilities, incomes.
5. Destruction or concealment of records, income and/or assets.
6. Failure to disclose and/or an attempt to conceal any conflicts of interest
relationships.
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7. Failure to disclose and/or an attempt to conceal any required information
on employment.
8. Any similar or related inappropriate conduct.
16. Non Fraud Irregularities and Conduct:
This Section covers allegations of personal improprieties or other irregularities
not constituting fraud, such as drug abuse or distribution of, vandalism,
assault, murder, sex offense or other such public nuisances, or criminal
activity. Suspected improprieties concerning employees, managers,
committee members, elected officials, or constituents seeking assistance
from the various programs administered by the County, as it pertains to
moral, ethical, or behavioral conduct should be resolved by the appropriate
Local Government Department Director and Administration whenever
possible. This section uses 24 CFR part 5 subpart I; PREVENTING CRIME IN
FEDERALLY ASSISTED HOUSING --DENYING ADMISSION AND
TERMINATING TENANCY FOR CRIMINAL ACTIVITY OR ALCOHOL ABUSE
15.851-5.861) and 24 CFR part 5 subpart J; ACCESS TO CRIMINAL
RECORDS AND INFORMATION ( 5.901-5.905), as a guide when referencing
non fraud irregularities and conduct.
17. Local Government Status Reports.
The housing program may as applicable to funding requirements, create and
maintain or require any of its Sub -Recipients, Contractors, Consultants and/or
vendors to create and maintain a monthly status report. This report is to be
presented to the PA/HRS on a regular pre -designated date and time each
month. It is important that the PA and local governing body be kept informed
as to the project scheduling (i.e. bidding, work write-ups, contracting,
construction, and completion) and budget to ensure that program compliance
is being maintained. Every status report should be prepared in a format
approved by the PA/HRS and have an attached budget summary, as
applicable. The budget summary shall contain all relevant construction cost,
and demographic data relevant to budget and administrative closeout audits
and/or compliance reviews. Likewise the HRS and PA will submit periodic
reports to the local elected officials and submit all required monthly, quarterly,
annual required reporting to the funding agency on time and as required.
Per Federal and/or state rules, the following reports required by the funding
agency include, but may not be limited to:
1. Monthly Status Report (MSR)
2. Quarterly Status Report (QSR)
3. W/MBE Report (bi-yearly)
4. Section 3 Report (annual)
18. Subordination: (See the County's Subordination Policy)
Approved Applicant homeowners who have received financial assistance
from the various housing programs frequently request the local government to
subordinate its interest in their property to a new loan mortgage/deed of trust
]8
for the purposes of; refinancing an existing first mortgage, obtaining a new
line of credit, home improvement, or debt consolidation.
The allowance of the subordination of the DPL shall be in accordance with the
local policy as approved by the County and/or the policy approved by the
funding agency. An active subordination policy is critical and is intended to
protect the local government's financial interest in the homeowner's property
without unduly restricting the homeowner's access to the equity in their
property.
The language of the documents (grants, mortgages, deeds of trust) filed as
liens against a property to secure the County's interest prohibit the transfer of
title, or portion thereof, without prior consent by the County. Executing an
additional lien, subsequent to the execution of the County's security
instruments, constitutes a transfer of title that would make the County's
loan/grant immediately due and payable.
19. Consent to Place Subordinate Lien
The County will generally consent to the placement of a Subordinate Lien
upon written request from the homeowner(s) under the following conditions:
1. Requests for Subordination of Lien must be approved by the PA, or
his/her designee.
2. The following documentation at a minimum should be provided to the PA
for consideration of Subordination requests:
a. Proof of licensure of refinancing lender to do business in the State of
Florida.
b. Authorization for Release of Information signed by the homeowner(s).
Signatures will be verified.
c. Written statement from the Homeowner(s) stating reason for the
subordination request.
d. Supporting documentation as to the validity of the reason.
e. Lender's Good Faith Estimate.
f. Complete terms and conditions of the existing loan and the new loan.
g. Documentation about payment of taxes and insurance and their status.
h. Copy of appraisal or property valuation information with method of
determining same.
Note: Consideration should not be given to any request for Subordination of
Lien without this information. Additional information may be required.
3. Requests for Subordination of Lien will be reviewed and a decision made
on a case by case basis on such merits as the following:
a. Emergency needs arising from a natural disaster.
b. Emergency housing repairs which eliminate a threat to the health or
safety of the occupants or that eliminate an immediate or imminent
danger to the dwelling itself.
c. Refinancing to lower the interest rate on the first mortgage if the
closing costs and/or fees can be recovered within four (4) years.
d. There is sufficient property value to support all outstanding mortgages.
e. Refinancing for educational purposes.
f. Refinancing for medical emergencies.
4. Request for Subordination of Lien should not be considered under the
following circumstances:
a. The interest rate on the new mortgage exceeds the interest rate of the
existing mortgage.
b. The cumulative loan -to -value ratio exceeds 100%.
c. The housing debt -to -income exceeds 30%.
d. The total debt -to -income ratio exceeds 40%.
e. There is cash paid out to the borrower(s).
f. The mortgage lender and applicant fail to provide all required
documentation.
5. Additionally, no subordination request should be approved if it contains
any of the following provisions:
a. Adjustable rate mortgage (ARM)
b. Balloon payment(s)
c. Open line of credit
d. Reverse mortgage
e. Prepayment penalty
f. Interest only mortgage
g. Negative amortization
6. In the event the County agrees to subordinate its affordable housing liens
or mortgages:
Usually such consideration is given only for proven hardship. Payment of
credit card debt is not a basis for approval in accordance with the County's
Subordination Policy. It is the intent that granting of subordination shall be
one time only and shall not include any liens/mortgages recorded
subsequent to the County's lien interest.
20. Refinancing Existing Superior Liens:
The County will generally agree to subordinate its interest in a rehabilitated or
newly constructed owner -occupied residential property assisted under the
CDBG or DRI programs if the proposed new loan is in an amount that does
not exceed the current aggregate balance of existing superior lien(s) plus
reasonable closing costs. This policy applies to both repayable and deferred
payment loans. Requests for a Subordination Lien due to hardship will be
considered on a case-by-case basis and are contingent upon state and
federal funder guidelines and rules.
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21. Program Income
No program income is planned to result from the CDBG program. Program
income should only result in the case of DPL repayment where the title is
transferred or the unit is no longer the primary residence of the Applicant
homeowner. All Deferred Payment Loans (DPLs) shall be zero -interest and
deferred payment with repayment of CDBG/DRI funds only in the event of
transfer of title or where the eligible Applicant homeowners no longer occupy
the unit as a primary residence within the DPL period. After the expiration of
the FDEO CDBG Award Agreement between the County and the State, the
monitoring will be performed by the PA annually through site visits and title
verification through the Clerk of Courts and County Appraiser offices. The
County's DPL mortgage documents and liens shall always include a notice to
the County as soon as the title changes ownership.
If repayment of CDBG/DRI funds is received during the DPL period, it will be
relegated back to the Florida Department of Economic Opportunity (FDEO) or
used for additional eligible CDBG/DRI activities as may be authorized by
FDEO. Program income or DPL payments received subsequent to closeout
will be returned to FDEO (within ten (10) days or the time frame allowed by
FDEO at the time of program income receipt if longer than ten (10) days)
unless the state's program income regulationsprovide for the County to retain
those funds and use them for allowable purposes.
F. General Program Polices
1. Objectives/Goals of Assistance: The Housing program is designed to provide
the following community opportunities:
a. To allow for public and community participation.
b. Provide safe and affordable housing solutions to VLI and LI families and
individuals.
c. To eliminate deficient code and housing quality standards (HQS) within
the housing stock of the community.
d. Eliminate housing units that can be considered to be a blighted influence
on the community.
e. Eliminate emergency housing conditions that pose an immediate health
and safety concern to residents/inhabitants.
f. Provide energy efficient and affordable green housing features to VLI and
LI families and individuals.
g. Address other housing issues that meet program funding criteria within the
intent and policy of the specific housing program.
2. Funding Sources
The funding sources listed below will be used to conduct all approved
activities associated with the CDBG DRI Program. The specific rules and
regulation requirements approved for each program shall govern the specific
use of the associated funds.
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a. Community Development Block Grant (CDBG):
b. Community Development Block Grant Disaster Recovery Initiative (CDBG
DRI):
c. Matched or leveraged State Housing Initiative Partnership (SHIP) funds
The above funding sources may be used to supplement all approved activities
associated with the CDBG DRI Program. The specific rules and regulation
requirements approved for each program shall govern the specific use of the
associated funds.
G. Priority of Assistance:
Priority of assistance is determined based on local need and specific program
requirements. When awarding funds for assistance to Applicants of housing -
related services, it is important for the County to establish a fair and equitable
underwriting process for selection. For awards to individual Applicants, criteria
are established by the program requirements, the current established HUD Area
Median Income (AMI) limits, those affected by documented federal disasters, and
other non -demographic preferences, such as targeting to special needs
populations, elderly and disabled. Eligibility for individuals is based upon annual
household income and on a first come, first qualified, and first serve system.
Applicants must complete and submit all required information on all household
members for a determination of income eligibility and must be willing to execute
all necessary documents on a timely basis.
Applicant Qualification Criteria and Requirements
Applicants will not be served until they have submitted a complete Application
with all documentation required and have been found by the HRS to be income -
eligible and can document clear and/or unencumbered title.
Income -eligible Applicants are those Applicants with household incomes that fall
between Very Low Income (VLI or 30% AMI) to Low -to -Moderate (LMI or 80%
AMI). Income eligibility is determined by using the total household gross income
and shall be determined upon completion of the application process.
Applicant Selection Criteria and Requirements
Applicants will be selected on a first-come, first -qualified, first-served basis using
the ranking system found in Appendix B and will be documented by the
individual(s) receiving the Applications by date and time stamp. Program rules
require that a minimum number of VLI and LI Applicants be served. Therefore,
priority will be given to VLI Applicants (minimum of two {21) and LI Applicants
(minimum of five {51) until the required number of VLI and LI units has been
satisfactorily addressed in accordance with and as outlined in the Agency Award
Agreement with (HUD, FDEO). Assistance is
subject to funding availability. No other ranking or scoring process will be used.
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Applicant Priority
There are times when priority must be given to certain underserved groups or to
meet funding agency requirements.
These other Applicant priority consideration factors will take effect in the event
that Applicants simultaneously submit an Application and it is not discernible by
the individual(s) receiving the Application which Applicant entered the facility to
submit the Application first, or in the event that the Applicants enter the facility to
submit the Application at the same time and there is only one individual to
receive the Applications causing one person to have a later date and time stamp
on their Application.
In addition, if the HRS, in consultation with the PA and other applicable local
government departments (Housing, Building, Fire, Health Department or Code,
etc.) determines that one Applicant's housing unit poses a greater hazard to
health and safety than another's, the Applicant at greater risk of physical harm
may be given priority (i.e. roof replacement would take precedence over a
window repair).
H. Applicant Intake
As required by specific program rules, the County will solicit and advertise the
appropriate public notification and public hearing(s) notices. A notice of funding
availability shall be placed in the appropriate media outlets to provide information
and discuss specific program housing activities to be undertaken with the
available program funding. Subsequent to the public hearing and advertising
periods a minimum of:
1. One (1) Applicant workshop should be advertised and held in a public setting
to address additional questions or concerns from the participating public.
2. All public hearings, advertisements, and workshops shall be advertised in
accordance with the appropriate funding agency (HUD, and FDEO)
requirements.
An informed Applicant will help minimize future misunderstandings. To this end,
Applicants should be informed early in the process of the program's income
limits, benefits, stipulations for assistance; repayment terms (if applicable) and
anticipated timeline from application to assistance. This information can be
effectively conveyed via a program and/or goal specific fact sheet or program
brochure and should be discussed during the initial Applicant workshop and as
required during any follow up contact.
The HRS shall review and Program Administrator shall review and rank the
applications based on a first come, first qualified, and first serve process. The
DRI category will be based on the same criteria.
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The application process will have a noticed cutoff date for the receipt of
applications. Applications received after that date shall only be considered on a
`first come, first qualified, first served' basis as alternates after the primary list of
Applicants has been considered and exhausted and where sufficient funds still
remain to address more units. Primary consideration of `first come, first qualified,
first served' status shall be when the Applicant complies with all program criteria
and has furnished all required documentation and can therefore be qualified by
the HRS, rather than time of receipt of the initial application. This is contingent
upon funds remaining available at the time of approval and the unit in question
also qualifying. Income qualification and unit qualification both apply (e.g. an
Applicant completes their file and is qualified, but the unit is in the flood plain or
historic and insufficient funds remain to address those issues. However, the
next Applicant in the first come, first qualified, first served line qualifies and only
needs roof and window repairs within the remaining budget.
The HRS or the County's PA may remove an Applicant from any CDBG program
for a change in household income, approved in the Applicant Selection Criteria,
not complying with the minimum qualification procedures, refusing to comply with
the program requirements or HRS directions (such as temporary relocation from
an unsafe dwelling or work area), not accepting the program standards or HRS
recommendations for eligible repairs or other just cause that would expose the
County to unacceptable risk. If it is determined that it is necessary to remove an
Applicant from the program, a certified letter will be drafted and recommended by
the HRS and sent by the County to the Applicant stating the reasons for the
removal. The Applicant will have the right to appeal the decision as identified in
the Citizen Participation Plan. The HRS's best judgment shall be the guide in
determining whether it is in the best interest of the program or the County to
reject a unit or application. The practical housing rehabilitation experience of the
HRS is critical in dealing with potential risk to the County or program, or the
safety of the occupant in cases where Applicants refuse to cooperate with
program guidelines or HRS directions.
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It is important to ensure that the housing program does not discriminate against
any class of potential Applicants. All persons must be treated equally when
serving housing needs. The Fair Housing Act is the term commonly used to
describe the provisions of Title VIII of the Civil Rights Act of 1968, as amended in
1988. The Act states that it is unlawful to discriminate on the basis of race, creed,
color, religion, age, sex/gender, familial status, national origin, or disability. In
addition to what is covered under the federal act, Florida law also prohibits
discrimination on the basis of marital status. This language should be included in
all program information announcements and advertisements relating to the
housing program. It is important for housing administrators to be familiar with fair
housing laws, as well as the more subtle forms of discrimination.
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1. Application Process and Applicant Eligibility
Listed below are the minimum functions to be performed in processing an
Application for Assistance. The County should make every good faith effort to
notify the Applicant of eligibility within thirty (30) days of the application date.
1. Review with the Applicant the objectives of the rehabilitation activities.
2. Advise the Applicant on the specifics of the grant program and other funding
sources that may be available.
3. Advise Applicant concerning the conditions under which a loan/grant is made.
4. Assign an application number and set up a separate file for each Applicant.
5. Check all local tax records to determine that property taxes are current.
6. Verify Applicant's household income. Retain documentation in program files.
(Also housing expenses and assets if they are used.)
7. Determine eligibility of the Applicant for assistance. Evidence that ownership
of the property has been verified through the Property Appraisers Office shall
be retained in the office files.
The application for assistance should contain all the necessary information to
determine whether an Applicant is eligible for program assistance, including but
not limited to:
1. The number of people residing in the household including name, age,
relationship to head of household, Social Security number, present address
and home phone number and employment status;
2. Name and address of employer(s), work phone number(s), position title and
number of years on job with employer;
3. Sources of annual income, including earned, unearned and asset income
(this subject will described in detail below);
4. A statement signed by the adults who reside in the household consenting to
the disclosure of information for the purpose of verifying income and assets
for determining income eligibility for program assistance.
5. A signed statement indicating that the Applicant understands that all
information provided is subject to Florida's public records laws.
6. An authorization for release of information sheet.
7. A statement that it is a first degree misdemeanor to falsify information for the
purpose of obtaining assistance.
To ensure proper Applicant qualification, each Applicant shall also be required to
provide, at a minimum, the following documentation, as applicable, on a case-by-
case basis.
1. Completed Application for Assistance and disclosures with signatures and
date. (including duplication of benefits documentation from FEMA, Insurance,
SBA, family assistance, faith, or community assistance documentation, and
duplication affidavits)
2. Government Photo Identification for Applicant and any co -Applicants.
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3. Proof of Ownership, e.g. recorded copy of Property Deed.
4. Current Property Tax Receipt.
5. Most current year's Tax Returns or current year's Tax Transcripts from IRS.
6. Paycheck Stubs (last 3 pay stubs for each working member, with additional
and updated stubs required at the County's discretion).
7. Most current Social Security Statement of Benefits for each household
member.
8. Most current documentation for other assets - 401(k), retirement/pension,
IRA, CDs, annuities, etc.
9. Most current self-employment income statement with schedule C, E, or F.
10. Documentation on dependents claimed (including birth certificate, school
records, court-ordered letter of guardianship, divorce decree and/or letter of
adoption).
11. Three most current bank statements for all open checking, savings or other
interest bearing accounts at the time of application and at contract signing.
12. Property Appraiser documentation showing what year the unit was built.
13. Third party contact information and release to obtain third party verification of
employment signed by employer and notarized. This documentation must be
received for eligibility determination.
14. DRI only: Documentation showing the Applicant was displaced or received
damage from Federally Declared Disaster.
The PA/HRS should review the application carefully to ensure that the Applicant
has provided all sources of income, including total household assets and asset
income. If an Applicant has trouble completing the program application and
providing the required back up documentation necessary needed for final
program eligibility. It may be preferable to schedule a meeting between the HRS
and Applicant to complete the application for assistance in a scheduled, face-to-
face interview where the Applicant can be prompted to provide accurate and
comprehensive income and household information. it is common for Applicants
to misunderstand what items to count toward annual income.
1. Applicant Responsibility:
Applicant Homeowners and all household members are responsible for
working in good faith and in a responsible, reasonable, and timely manner
with the HRS. Reasonable deadlines shall be established at each step of the
process of submittal of information by the homeowner. Generally after two
written notifications, any refusal or failure to provide information, or any
established pattern of untimely submittal of information by the homeowner, at
the HRS's discretion and approval by the PA the Applicant's case file may be
closed.
J. Applicant Homeowner Eligibility Standards
In order for a homeowner Applicant to be eligible for purchase and/or
rehabilitation assistance, the following criteria must be met:
26
Total household income under CDBG and DRI must not exceed the very low
income (VLI) to low -to -moderate income (LMI) limits set for the HUD Section
8 program at the time assistance is provided or no greater than eighty
percent (80%) of the Area Median Household Income (AMI) limits.
For regular category CDBG and DRI. The Applicant homeowner 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,
heir property or other legal satisfactorily documented ownership is
considered satisfactory for program participation. Providing proof of title is an
owner responsibility and expense.
3. The Applicant homeowner must reside in the dwelling as a primary residence
to be rehabilitated for at least one (1) year prior to the time of application
(owner occupied assistance). In the case of the DRI category, the Applicant
homeowner must have been permanently residing in the dwelling unit as the
primary residence at the time of the declared disaster.
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 to be eligible for CDBG and DRI owner -occupied
rehabilitation.
5. For all CDBG programs, the property must be fully insured for basic
hazard/homeownership insurance. Flood Insurance also applies in the one
hundred (100) year flood plain and the County must be named as a policy
holder if the home is in the one hundred (100) year flood plain. Flood
insurance must remain in effect for the entire period of the Deferred Payment
Loan Agreement. Any unit to be addressed with CDBG funds must be
elevated to at least one foot (1') above base flood elevation (or to local code)
whichever is greater, or disqualified due to cost infeasibility. This applies to
all categories and all activities involving construction.
6. For all CDBG programs, all Applicants that may have a business or familial
relationship with a member of the County Commission, the Citizen's Advisory
Task Force Committee, HRS, PA 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 (see Conflicts of Interest)
7. For regular category CDBG and DRI, if a boundary survey is required, the
Applicant homeowner is responsible for providing necessary proof or
documentation at the homeowner's expense.
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8. Rental or other income generating properties are not eligible to participate in
the CDBG or DRI owner -occupied rehabilitation program. Only units
occupied by the Applicant(s) with clear title as a primary residence are
eligible.
9. In DRI categories, lease units may be addressed if a) the County is seeking
lease units to meet DRI VLI or LMMI needs, b) the project is cost feasible, c)
the unit(s) are income restricted (either LI or VLI), d) the units comply with all
HUD and FDEO eligibility requirements (or will by means of agreement and
improvements), e) have CDBG eligible repair needs and f) for VLI rental set
aside funds, the property management agency demonstrates capacity and
the minimum five (5) years' experience required to participate. Such
properties shall be screened and qualified by the selection process and
review of the HRS. The property management organization is required to re -
verify income annually for all tenants.
10. Applicants may be required to attend a HUD approved eight (8) hour
homebuyers' education class prior to closing, this may apply to any new
construction units under the DRI program.
11. For all CDBG and DRI programs, the County shall take all reasonable
measures to avoid fraud and abuse. The County shall provide qualified
oversight through competent staff of contract program oversight. Any fraud
or abuse of Housing funds shall be grounds for disqualification.(See Fraud
section of this document)
Each Applicant; to ensure proper homeowner qualification will also be required to
provide at a minimum documentation as required in subsection 1. Application
Process and Applicant Eligibility.
K. Duplication of Benefits
In regards to Disaster Recovery Initiative (DRI): Applicants who responded to an
advertised request for Applications must provide additional documentation as
listed below:
1. Proof that the residence was impacted by the applicable federally declared
disaster event.
2. All FEMA, Small Business Administration (SBA), and Insurance claim
documentation.
3. Written certifications and proof of all benefits received.
4. All receipts and/or invoices for work completed using FEMA, SBA, and/or
Insurance monies from a filed claim.
28
Any and all program required self -certifications as is required by the funding
agency, the housing program, and applicable local governments
L. Applicant Household and Income Verification
The household and income verification process may vary slightly from one
program to another depending on the funding agency requirements. Generally
speaking, an eligible household is comprised of one or more natural persons
determined by the eligible municipality to be of very low income, low, low to
moderate income according to the current HUD income limits adjusted for family
size. The HUD Handbook 4350.3 Chapter 3 Section 3-6 (E) (as may be
amended) provides guidance on whether or not to count an individual as a
household member. Whenever the handbook indicates that an individual is a
household member, the individual's full income must be included in the annual
income.
M. Household Income
An Applicant homeowner's household income eligibility status shall be
determined based on the total family Gross Annual Anticipated Income according
to household size and make-up. The income eligibility of each household will be
determined in accordance with current HUD "annual income" rules and
regulations as defined in HUD Handbook 4350.3 rev 3 or those adopted through
the funding agents Consolidated Plan and approved by HUD.
All household income inclusions and exclusions can be found at HUD 24 CFR
part 5:
http://portal.hud.gov/hudportal/HUD?src=/program offices/comm planning/afford
ablehousing/training/web/calculator/definitions/part5
The income of each household assisted with any CDBG or DRI funds will be
determined at the time of purchase in accordance with 24 CFR 570.3 using
"annual income" as defined by the Section 8 Housing Assistance Payments
Program to ensure income requirements are being met.
The following rules are applicable in determining household income:
For all CDBG programs, the gross income of all household members
occupying the dwelling is included in calculating household income.
However, wages earned by dependent minor children (under age 18) are not
included in total.
2. For all CDBG programs, all Applicants applying for housing rehabilitation
assistance under the CDBG program will be subject to a third party income
verification process to ensure that all Applicants meet the minimum income
guidelines set forth by the established HUD minimum income limits.
?9
3. For all CDBG programs, occupants of a dwelling who are not related to or not
dependent upon the Applicant homeowner(s) are considered part of the
Applicant homeowner's household.
4. For all CDBG programs, rent or other household support contributed by non -
household occupants of a dwelling is included in household income.
For all CDBG programs: The Applicant homeowner' s assets, with the exception
of the home in which he/she resides, unless previously assisted with SHIP funds,
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.
II. COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG/DRI) PROGRAMS —
REHABILIATION AND CONSTRUCTION POLICES AND PROCEDURES
A. Identification of Units
Housing Rehabilitation will be performed only on units approved by the County
and in accordance with grant requirements established by the State of Florida
DEO and the U.S. Department_of Housing and Urban Development (HUD).
Alternate units may be provided to replace any primary units that may become
ineligible. The County will solicit applications either from other housing
assistance providers that have knowledge of need within the County, by placing
notices in public areas throughout the County and/or by advertising in publicly
circulated publications. The County will review applications received using the
following selection criteria as defined in the Priority of Assistance section of this
document:
For all CDBG programs, has the Applicant previously been furnished
assistance under any County Housing assistance program including State
Housing Initiative Partnership (SHIP) or Disaster Recovery Initiative (DRI), or
other such federal/state programs, and if so, when and under what
circumstances. A former Applicant that received assistance under the regular
CDBG category cannot be assisted for five (5) years and in any event will not
be served again until all other eligible Applicants have received assistance.
2. For all CDBG programs, number of persons in the family and the family
income. Priority will be given to Applicants that meet the VLI and LI Applicant
selection criteria as defined in the Priority of Assistance section of this
document.
3. For DRI, housing units identified by the County when the County falls under a
Federally Declared Disaster Event, having been affected by a disaster.
30
4. For regular category CDBG and DRI, type of construction (i.e., block,
manufactured home, wood frame, etc.), state of deterioration of the
residence and estimated cost to rehabilitate as compared to 1) average
residence cost calculated in the application and 2) the value of the residence
after rehabilitation. For DRI category funding only, assistance for mobile or
manufactured housing will be included in the program, but will be restricted to
replacement of said structure with a site built home, unless prohibited by
local or state regulations or infeasible due to applicant or site conditions. The
HRS shall make the final evaluation and recommendation for addressing any
mobile or manufactured units.
5. For all CDBG programs, location of the residence with reference to defined
areas, i.e., floodplain, zoning, incompatible use, historic preservation,
hazards, etc.
6. For all CDBG programs, compatibility (consistency) of the proposed
residence rehabilitation with the local Comprehensive Plan and/or land
development regulations.
7. For all CDBG programs, confirm that the Applicant is current on all payments
to the local government (i.e., garbage/trash bill, utility bills, taxes, etc.) and
mortgage/lien holders.
8. For all CDBG programs, Applicants' willingness to maintain reasonable
standard of care (code compliance) and maintenance to protect and enhance
the investment by meeting local nuisance, trash, and other environmental or
health codes.
9. For regular category CDBG and DRI owner -occupied units, to be eligible,
Applicant must be able to show clear title to the property.
10. For all CDBG programs, is the structure more than fifty (50) years old? The
Applicant shall indicate on the Application form whether to his/her knowledge
the structure is older than fifty (50) years. If the answer is "yes," or if other
evidence suggests the structure is more than fifty (50) years old, the County
must notify the State Bureau of Historic Preservation and receive written
approval for the rehabilitation. Property Appraiser, tax records, or other
government agencies' records will be researched to verify the age of the
structure.
11. The HRS shall make the final evaluation and recommendation for each
Applicant and unit as to whether they are appropriate under any CDBG or
DRI program and the HUD and FDEO requirements. The County makes the
final determination of acceptance of an Applicant and of award of any units,
subject to the guidelines of this HAP as set forth by the Board of County
Commission Members.
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12. For regular category CDBG and DRI, for owner -occupied rehabilitation,
owner -occupied shall mean a residential unit with the clear title in the
personal name of the Applicant(s) used as the primary residence of the
Applicant(s). This does not include any non-residential unit or shared space
with non residential uses or income generating property.
13. For all CDBG and DRI programs, this program will not assist in the
rehabilitation or replacement of rental housing structures.
14. For regular category CDBG housing programs, only single family, owner
occupied homes will be assisted.
B. Eligible Property Types
Eligible property types will vary based on the specific goals and regulations of a
specific program and its funding origination. The most common eligible property
types include but are not limited to:
1. Single -Family Homes.
2. Townhomes, Condominiums units and Duplexes.
3. Mobile Homes (replacement only)
All properties must be within the approved program jurisdiction boundaries and
the following property eligibility criteria are applicable:
1. Type of construction, (i.e., block, mobile/manufactured home, wood frame,
etc.), state of deterioration of the residence and estimated cost to rehabilitate
as compared to 1) average residence cost calculated in the application and 2)
the value of the residence after rehabilitation. Assistance for mobile or
manufactured housing may be included in the program, but will be restricted
to the specific requirements set forth in the local program guidelines unless
otherwise prohibited by federal or state regulations or infeasible due to
Applicant or site conditions.
2. Any home eligible for assistance where the cost of rehab will be in excess of
fifty percent (50%) of the appraised value of the home as listed with the local
Property Appraiser's office will be disqualified for CDBG Housing
Rehabilitation funding.
3. Location of the residence with reference to defined areas, i.e., floodplain,
zoning, incompatible use, historic preservation, hazards, etc.
4. Consistency of the proposed residence rehabilitation with the local
comprehensive plan and/or land development regulations.
5. Whether or not the Applicant is current on all payments to the local
government (i.e., garbage/trash bill, utility bills, code violations, taxes, etc.)
and mortgage/lien holders.
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6. Applicant's willingness to maintain reasonable standard of care and
maintenance to protect and enhance the investment by meeting local
nuisance, trash, and other environmental or health codes.
7. Whether or not the Applicant has clear title to the property. The Applicant
shall have fifteen (15) calendar days from the date of the County's review,
which will include the results of a title search. If fifteen (15) days pass without
proper documentation or compliance, the application will become an
alternate (falling to the bottom of the list on the sixteenth [16th] day) and shall
not be considered until 1) all other applications are exhausted with funds
remaining and 2) the Applicant has a completed file with full compliance with
this requirement and all others.
8. Whether or not the structure is more than fifty (50) years old. The Applicant
shall indicate on the application form whether to his/her knowledge the
structure is older than fifty (50) years. If the answer is "yes," or if other
evidence suggests the structure is more than fifty (50) years old, the County
must notify the State Bureau of Historic Preservation and receive written
approval for the rehabilitation or demolition/replacement prior to the start of
work.
9. The HRS shall make the final evaluation and recommendation for each
Applicant and unit as to whether they are appropriate and eligible under
specific program rules and in compliance with the funding agency
requirements. The PA makes the final determination of acceptance of an
Applicant and of the award of any units, subject to the guidelines of the local
policies.
10. Where applicable the HRS must complete the proper environmental review
process, including but not limited to a site specific Tier 2 form, and receive
written approval or release of funds from the funding agency prior to the start
of rehabilitation.
11. Partner -assisted programs (with "partners" being affordable housing
developers, community based organizations, housing authorities, non -profits
and similar affordable housing providers) may be implemented as outlined in
local policy guidelines. Partners shall be selected using the Request for
Qualifications (RFQ) or Request for Proposals (RFP) competitive selection
process. Deed restrictions and Deferred Payment Loans (DPLs) apply. All
unit and Applicant qualifications and monitoring by the HRS and PA apply.
Partners must agree to comply with all program specific requirements and
submit to monitoring and directions of the HRS before any funds are released
or payments made.
12. For owner -occupied rehabilitation, owner -occupied shall mean a residential
unit with the title in the personal name of the Applicant(s) used as a primary
residence of the Applicant(s). This does not include any non-residential unit
or shared space with non-residential uses or income generating property.
C. Scope of Rehabilitation Assistance
CDBG financing of housing rehabilitation is available for the following purposes:
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1. Addressing local housing code required repairs under current Florida
Building Codes requirements for Existing Buildings and local Maintenance Codes
and/or Section 8 HOS violations, whichever is most stringent for each code -
related repair needs. This will include Florida Energy Efficiency Code for new
construction where it applies and Accessibility Requirements (24CFR Part 8, 24
CFR 100.201, 24 CFR 100.205) where they may apply;
2. Providing for cost effective 'Green Standards and Additional "Green
Standards" as described in section J- Rehabilitation and Replace Procedures.
The most current Florida Green Building Coalition checklist of green features
including those required by FDEO and that are appropriate for the type dwelling
shall be used as a list of options for including affordable green features,
3. Providing reasonable repairs and modifications to make the dwelling
accessible to handicapped and elderly occupants as necessary and technically
feasible. The HRS shall determine the feasibility and eligibility of any such
repairs; 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. The HRS shall determine the
feasibility and eligibility of any such repairs;
Except for DRI new construction or redevelopment activities, new construction
such as adding a room or closing in a carport is eligible for rehabilitation
financing only to eliminate overcrowding or to provide bathroom or laundry hook
ups. In all CDBG categories general property improvements are eligible for
program funds when necessary to obtain an accurate level of utility, to decrease
high maintenance costs, or to eliminate 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
coverings, and enclosure of a porch for use as a bathroom where the dwelling
does not have adequate interior space.
In the CDBG and DRI categories for owner occupied rehabilitation, some general
property improvements that are not required by code, and/or Section 8, HQS, or
the work required by the code and/or Section 8 HQS (creating a need for
restoration) or other eligible reasons listed above and recommended by the HRS
may be provided at the owner's expense. The cost for any such improvements
shall be borne by the owner who must deposit the funds with the local
government prior to construction otherwise the additional items will not be
included in the construction. These items must be included in the Contract for
Rehabilitation that is developed and administered by the Program. However,
ineligible new construction must be contracted separately. Furthermore, any
construction not covered in the construction contract will be inspected by the
local building inspector and will not be inspected by the HRS or PA.
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D. Contractor/Vendor 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 outreach to allow for utilization of
qualified local Section 3 and minority contractors.
Programs in which the funding originated from a federal source (CDBG, DRI)
prohibit local preference in accordance with 24 CFR 85.36, but require maximum
compliance with Section 3, W/MBE, and EEO practices as set forth in HUD and
CFR regulations. Every effort shall be made to notify Contractors residing or
maintaining offices in the local area through public notices, as part of complying
with Federal Section 3 and Minority -Owned Business Enterprise (MBE)
requirements. This special effort will be based upon the list of Contractors
licensed in the jurisdiction including residential, building and general contractors.
Letters sent to Contractors, and/or solicitation advertisements, will be placed in
the appropriate program file to document compliance. In addition to active efforts
to comply with Federal Section 3 and MBE requirements, the County will follow
all program requirements in its advertising and will promote fair and open
competition, with no restrictions to promote advantages for local firms or
businesses.
Contractors residing or maintaining offices in the local area will be recruited
through public notice to all such contractors, as part of the County's compliance
with Section 3 requirements. This special effort will be based upon the list of
contractors licensed in the jurisdiction including residential, building and general
contractors. Letters sent to contractors, or advertisements placed soliciting them,
will be placed in the appropriate County 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.
The existing purchasing policy of the County will be used to determine eligibility
of the contractors.
E. Contractor/Vendor Eligibility
In order to participate in the Housing Rehabilitation Program, a contractor must
be approved as eligible by the HRS, the PA and by the Florida Department of
Economic Opportunity (FDEO).
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Standard Contractor/Vendor qualifications include but are not limited to:
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:
a. Contractor's Public Liability Insurance in an amount not less than
$1,000,000 aggregate coverage
b. A certificate evidencing Worker's Compensation insurance in statutory
limits in accordance with Florida law.
c. A certificate evidencing Auto Insurance, including bodily injury, in an
amount not less than $1,000,000 per accident and in the aggregate.
d. A certificate evidencing General Liability insurance covering bodily injury,
including death and property damage, in an amount not less than
$1,000,000 combined single limit per occurrence.
e. Copies of certificates shall be provided to the PA. The Contractor shall
provide the PA with a certificate of insurance from the insurer
guaranteeing thirty (30) day notice to the Housing Rehabilitation Program
before discontinuing coverage.
4. A satisfactory credit record, including:
a. References from two (2) suppliers who have done business with the
contractor involving credit purchases.
b. References from three (3) subcontractors who have subcontracted with
the contractor.
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 performed construction work.
6. Absence from any list of debarred contractors issued by the Federal or State
DOL, HUD or FDEO.
7. Acceptance of all program requirements, including but not limited to Section 3
goals and reporting. MBE goals and reporting and where applicable
prevailing wage requirements.
The HRS 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 HRS 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 will also be
explained to the contractor.
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Additional or alternative requirements may be applied by the County based on
County policy, provided that such policy(ies) do not violate CDBG rules or
regulations.
F. Contractor Disqualification
Contractors may be prohibited or removed from program participation for, but not
limited to:
1. Poor workmanship or use of inferior materials.
2. Evidence of bidding irregularities such as "low -balling" (submitting an
unreasonably low bid in the hopes of increasing the bid amount through
change orders once construction has commenced), 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 homeowners, HRS, PA, 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 federally or state assisted contracts as determined by
the U.S. Secretary of Labor, HUD or FDEO.
13. Other just cause that would expose the Program or homeowner to
unacceptable risk.
14. Failure to respond to a minimum of three (3) consecutive requests for bids.
15. At the contractor's request.
G. Eligibility Inspection
Each Applicant who applies for rehabilitation assistance is initially screened to
determine whether he/she is eligible for a 100% Deferred Payment Loan. A
preliminary inspection of the Applicant's unit is then conducted to determine
feasibility of rehabilitation.
If either the owner or the structure does not meet eligibility requirements for
program participation, the HRS will reject the unit/Applicant. In the case of owner -
occupied rehabilitation and upon PA review and approval, a written rejection
notification will be sent to the Applicant via certified mail within ten (10) days
stating the reason for rejection.
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If both the Applicant and the house structure appear to be eligible for program
participation, the application/verification process continues. A work write-up with
cost estimate is developed by the HRS and approved by the Applicant and the
PA. The cost estimate for the job is considered confidential information until bid
opening.
If special financing arrangements (such as the Applicant covering excessive
costs or general property improvements) are required or anticipated,
arrangements must be made prior to bidding to prevent soliciting bids on a home
that cannot be financed. When the unit and Applicant receive preliminary
approval, bids are solicited for the job.
Once the HRS has found the Applicant and the dwelling unit to be program
eligible, a full property inspection and review will be conducted. The inspection
process shall at a minimum consist of the following:
1. The completion of the HUD HQS Inspection Form (optional at the HRS
discretion).
2. The completion of the pre -Scope Of Work (SOW) and inspection report
further detailing all code/HQS deficiencies and listing the areas in which
rehabilitation is required.
3. The completion of the final SOW and cost estimate
H. Bidding
Bidding of potential CDBG and DRI units is conducted by the HRS in conjunction
with the County Procurement/Purchasing Department. Applicants review the pre -
approved list of eligible contractors before their cases are sent out for bids.
Applicants have the right to remove any contractor(s) from the list of prospective
bidders for their unit, as long as the removal request is based on non-
discriminatory, non -bias, or other non -subjective reasoning and at least three (3)
eligible contractors are allowed to bid. The Applicant must be willing to justify the
removal of contractor(s) from the bidding list. Applicants may also request
additional contractors as bidders. If these Applicant -requested contractors submit
the Contractor Application and are approved by the PA and are otherwise
eligible, they may be added to the bidders list and bid on the housing
rehabilitation work. The HRS will make maximum effort to ensure participation by
minority and/or Section 3 owned contracting firms. Under CDBG and DRI, the
HRS shall qualify and recommend all contractors and other necessary vendors
(lead based paint, asbestos, title search, mold, appraisal, land survey,
environmental, etc.) for work the HRS recommends or the program requires on
eligible units. In these cases, the County policies shall govern the qualifying and
award process, including this HAP.
No housing unit owner, occupant, 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.
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A notice is sent via email, fax or U.S. Mail to each eligible bidder to inform them
of the job. Bidding notices will be posted at primary governmental buildings to the
maximum practical extent. Advertising for individual jobs will be conducted as
necessary but will not exempt contractors form the requirement that they must be
pre -qualified.
1. Notification to Bidders (NTB): The HRS or assigned Housing Staff will notify
previous program approved Contractors of the availability of the work order
and establish a date for the pre-bid conference and bid submission deadline.
Bids are opened in the public at the designated time and bid tabulation is
prepared.
2. Pre -Construction Meeting: An onsite meeting will be arranged between the
homeowner, the approved Contractors and the HRS to review the scope of
work and site considerations. This meeting will also serve to allow for
Contractor and homeowner introductions and questions. Any questions that
arise from the onsite meeting must be submitted in writing to the HRS who is
required to answer the question in writing and submit it to all approved
present Contractors. Questions may not be answered less than seventy-two
(72) hours prior to the established bid submission date. Each contractor
MUST attend this pre-bid conference held at the approved unit to be
rehabilitated or inspect the house under the Applicant's supervision. Failure to
do so will result in automatic rejection of his/her bid(s) for the unit(s).
3. Bid Submission and Award Recommendations: Bids will be submitted on the
date and time established in the Notification to Bidders advertisement and
awarded in compliance with the HAP requirements and the terms set forth in
the NTB advertisements. Sealed bids will be opened at a public bid opening.
The HRS will generally recommend that the contract be awarded to the
lowest responsible bidder within plus or minus fifteen percent (15 %) of the
cost estimate. Bidding procedures will adhere to County purchasing policy.
Bids below the fifteen percent (15%) threshold will be reviewed and are not
automatically disqualified.
A minus ten percent (10%) contingency will be assessed for all Section 3
and/or W/MBE firms at the bid opening to provide incentive, opportunity and
encourage the participation of such established business types in accordance
with HUD requirements. All bid awards will be made available to the
participating Contractors and homeowners.
The PA reserves the right to reject any and all bids and to award in the best
interest of the Applicant and the County. The Applicant must approve the bid
award prior to signing contracts.
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No contractor will be allowed to have more than two (2) jobs per bid round
with a maximum award of three (3) jobs under construction at one time
without consent of the PA unless:
a. The anticipated date of commencement is after the scheduled and
estimated date of completion of current jobs; or
b. 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 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.
4. Contracts: Preparation of Contract Documents: The HRS or approved staff
prepares Applicant homeowner/County and Applicant homeowner/contractor
agreements and sets a time to meet with the Applicant homeowner and
contractor to execute the documents and mark the start of construction.
These agreements at a minimum should consist of the following:
1. Voluntary Participation and Final SOW Approval.
2. Final Income Certification and Affidavit.
3. Truth in Lending Statement.
4. Program Mortgage/DPL and Note.
5. Rehabilitation Agreement/Rehabilitation Contract.
6. Notice to Proceed.
7. Notice of Commencement.
8. Color/Style Selection Sheet.
9. Temporary Relocation Statement (where applicable).
10. Three (3) Day Recession Notification.
Deferred Payment Loans (DPLS)
The CDBG and DRI Programs provide financing for eligible activities to income
qualified Applicant homeowners in the form of zero -interest Deferred Payment
Loans (DPLs) (mortgage), the amount of which shall include the accepted bid
amount for rehabilitation plus a contingency reserve. In the case of DRI, this can
also include acquisition or purchase assistance.
1. Deferred Payment Loans (DPL)
a. Deferred Payment Loans (DPLs) are zero -interest loans with deferred
payments that become grants when and if all criteria are met by the
Applicant. The DPL is provided to a) homeowners who are unable or
unlikely to obtain conventional financing due to their income limits, or b) to
assist disaster affected homebuyers in purchasing a home under DRI.
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b. DPL financing is also used in the CDBG and DRI categories to provide
assistance with housing rehabilitation and/or replacement of owner
occupied, eligible units. The Deferred Payment Loan (DPL) involves a
security instrument (lien) requiring repayment of the loan if the homeowner
sells or transfers ownership of the rehabilitated home, ceases to use it as
his/her primary residence within the date specified in the terms of the DPL,
or fails to maintain reasonable required standards of care and
maintenance. During the specified lien period the principal is forgiven or
subtracted from the principal balance in equal annual amounts for CDBG
and DRI rehabilitation loans, so that at the end of the specified term of
owner occupancy (by at least one of the Applicants if owned jointly), the
loan is fully amortized. There is no interest charged during this specified
term agreement.
c. In the event that the sole owner dies or both/all owners die within the
specified loan period, repayment of the loan will not be required and the
DPL is forgiven (i.e. it becomes fully amortized upon the death of the final
owner).
d. The assistance provided to each Applicant, at the time of closing, will be in
the form of either a primary or secondary mortgage. The mortgage will be
recorded in the Public Records of the County. The County will monitor
possible triggers of the DPL repayment with annual title verification with
online County services through the Clerk of Court and Appraisers offices
and through visits to the assisted units.
e. The primary affordability mechanism is a Deferred Payment Loan (DPL) at
zero interest and is forgiven after 10 years.Except for Demo/Replacement,
those Deferred Payment Loans at zero interest are forgiven after 20 years.
NOTE: With regard to Demo/Replacement (new construction housing),
DPL's must maintain long-term Affordability for the 20 year lien period.
f. If repayment of a DPL becomes due, the (prorated for CDBG and DRI)
principal 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 payment, the County
Commission may, at their discretion, and with FDEO approval, allow
repayment of the DPL over a term not -to -exceed fifteen (15) years, at a
yield of not more than one percent (1 %) interest per annum, and/or allow
transfer or sale of the unit to another income qualified household for the
remainder of the lien period.
g. Homeowners whose household incomes do not exceed the HUD Section
8 low -to -moderate income limit will receive a Deferred Payment Loan for
one hundred percent (100%) of the cost of rehabilitation.
h. The maximum DPL for the regular CDBG and DRI categories for an
owner -occupied single family dwelling for repairs or replacement is eighty
thousand dollars_($80,000).
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i. If rehabilitation costs require more than maximum allowed DPL in the
aforementioned categories and the owner is unable to finance the
additional cost, the dwelling unit may be disqualified by the HRS unless
matched, leveraged, or other alternative funding is available. If the HRS
considers it appropriate and in the best interest of the program, CDBG
funds may be used in lieu of alternative funding only upon 1) availability of
CDBG construction funds and 2) the approval of the County Commission
of a waiver of the maximum DPL.
j. As a general policy, a contingency amount of approximately five percent
(5%) shall be placed on reserve for change orders. Exceptions may be
made to this rule if the owner provides a firm commitment in writing to pay
for all required changes exceeding the authorized loan limit, or if the PA
determines that the situation does not require a contingency fund.
J. Rehabilitation and Replace Procedures
All rehabilitation and replacement construction work shall include and address
Section 8 Minimum Housing Quality Standards (Section 8 HQS), the current
Florida Residential Building Code and relevant local codes (whichever is most
stringent for each code -related item).
When replacing older obsolete products and appliances the following "green"
standards will be implemented for all homes rehabilitated, including new home
construction to include:
Green Standards
1. Refrigerators that are replaced or installed shall be Energy Star rated;
2. Gas water heaters that are replaced or installed shall be Energy Star rated:
3. All exterior doors and windows that are replaced or installed shall be Energy
Star rated;
4. All lighting fixtures and ceiling fans that are replaced or installed shall be
Energy Star rated;
Additional standards for all homes
1. Weatherization of all homes rehabilitated
2. At a minimum, weatherization shall include attic insulation, and if appropriate,
floor insulation, as well as sealing all exterior walls.
3. HVAC units that are replaced or installed shall be Energy Star rated and have
a SEER rating of at least 14.
4. Where feasible and cost effective as determined by the PA/HRS, all
rehabilitation and new construction work, major or otherwise, shall include the
installation of water -efficient toilets, showers, and faucets.
K. Structural Requirements
For all CDBG programs, in addition to household eligibility requirements for
rehabilitation, the dwelling must:
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1. Meet (or through feasible repairs meet) Section 8 Minimum HQS and,
2. Be 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, the current Florida Building
Code and Section 8 Housing Quality Standards;
b. Provide interim controls or abatement for lead-based paint hazards as
required by HUD and EPA for structures constructed prior to 1978 that will
be assisted by the program. All houses built prior to 1978 will be tested for
lead-based paint. If lead-based paint is found, interim control procedures
will be used for all houses rehabilitated at or below twenty-five thousand
dollars ($25,000). Houses rehabilitated at a cost above twenty-five
thousand ($25,000) will be rehabilitated using abatement procedures. Any
occupants will be notified in writing 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; (also
see Lead Base Paint procedures)
c. Meet applicable local zoning requirements, as well as local, State and
Federal housing code requirements for rehabilitation work;
d. Leave at least twenty percent (20 %) of the original structure based upon
the formula provided in this section;
e. Not exceed the program costs noted in this HAP;
f. Be made reasonably accessible to handicapped/elderly occupants, when
the unit is occupied by such;
g. New construction or substantial improvement of any residential building
(or manufactured home) located within the one hundred (100) year flood
plain shall have the lowest floor, including any basement, elevated no
lower than one (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;
h. The HRS will determine if any special surveys or studies are needed and
may require any surveys or environmental assessments (with funds
available) to determine feasibility of a unit. The County designee and PA
shall approve such special studies or surveys before being ordered. If the
recommended studies or surveys are cost infeasible, the unit may be
denied at the County's discretion, or the Applicant may pay the cost of
such studies or surveys the HRS recommends;
i. Provide interim controls or abatement for asbestos hazards as required by
HUD, the State and EPA that will be assisted by the program.
3. For regular category CDBG and DRI. Be suitable for redevelopment or
replacement housing units in cases where rehabilitation is not feasible and
sufficient funds (CDBG and DRI) are available for the completion of a new or
replacement housing unit that meets all of the above and all other criteria in
this HAP. Redevelopment and replacement units must meet all of these
requirements to be eligible.
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L. Structural Integrity
For all CDBG programs, rehabilitation requires that at least twenty percent (20%)
(CDBG and DRI) 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 one hundred percent (100%) of the
structural value of the house. These components and ratios are: roof — twenty
percent (20%), exterior walls — sixty percent (60%), and flooring system — twenty
percent (20%).
As an illustration, assume fifty percent (50%) of the roof must be replaced, fifty
percent (50%) of the walls must be replaced and twenty-five percent (25 %) of
the flooring system (including framing) must be replaced. The factors are then
ratioed based on the 20/60/20 formula, so that fifty percent (50%) replacement of
the roof is equal to replacing ten percent (10%) of the structure, fifty percent
(50%) replacement of the exterior walls equals thirty percent (30%) replacement
of the structure, and twenty-five (25 %) replacement of the flooring system equals
five percent (5%) replacement of the structure. Thus, replacement equals ten
percent (10%), plus thirty percent (30%), plus five percent (5%), or a total of
forty-five (45%) of the structure. This leaves fifty-five percent (55%) of the original
structure, indicating that the structure is feasible for rehabilitation.
This calculation will be performed by the HRS. Should significant deterioration
occur between application approval and the time the unit is scheduled for
rehabilitation, the unit will be re-evaluated for continued eligibility and a decision
made by the HRS whether to replace it with an alternate unit in accordance with
current FDEO contract requirements.
M. Cost Feasibility
Pertaining to the CDBG and DRI categories, 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 with other funding sources. The limits may be
exceeded for rehabilitation/replacement costs when alternative funds are
available for leveraging, but must be specifically approved by the County
Commission or PA as exceeding the described limits.
1. $80,000 per single family detached house (CDBG and DRI)
2. $50,000 per unit of a duplex, Townhome, or Condominium unit (DRI)
3. $20,000 per mobile home unit built after Jan. 1, 1997( DRI)
In addition, for the CDBG and DRI categories, the cost of rehabilitation and
improvements may not exceed the after -rehabilitation value of the dwelling. In the
absence of conflicting information, the mobile home DRI cost limits shall be
assumed to meet this requirement. For site -built dwellings, the total cost of
rehabilitation (plus other improvements, if any) may not exceed eighty dollars
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($80) per square foot of dwelling space, excluding septic tank, well, or
water/sewer hook-ups, which is less than the cost of new construction and will be
assumed to meet the cost/value limit.
N. Clearance
Requirements are identified by the HRS and are included in the replacement unit
bid package. In this way, the same Contractor is responsible for site cleanup 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.
O. Rehabilitation/ Demolition Differences
A major difference between assistance provided to demolish / replace an entire
unit and rehabilitation work is that, with a demo / replace unit, the DPL issued is
not for the full value of the replacement unit (owner occupied). (With
rehabilitation, the DPL is issued for the full value of the rehab work performed.)
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
Applicant homeowner and is being replaced on a one-for-one basis. Ownership
of the replacement unit is vested directly to the homeowner with no interest on
the part of the local government (except for the DPL). Generally, the local
government will accept interim ownership of mobile homes to save program
costs (taxes) with transfer to the homeowner as soon as possible, upon
satisfaction of the DPL.
No partial payment is provided for modular replacement units, as the time
frame to complete the transaction is relatively brief. The Contractor is paid in
full upon satisfactory completion of work and providing of warranties. Partial
payments are utilized for site built homes along the same lines as for
rehabilitation work.
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
CDBG/DRI limitation for cash on hand is not violated.
3. Rehabilitation cost feasibility limits are based on number of bedrooms to be
provided for site built homes. These limits may not be exceeded without
approval from the County Commission are:
a. four or more bedrooms - $80,000 CDBG/DRI
b. three bedrooms - $70,000 CDBG/DRI
c. two bedrooms - $60,000
4.5
In the case of all loans, the County will take into consideration grant and
contracted requirements for the number of housing units contracted to assist
and the amount of available CDBG funds.
In the case of replacement of existing SF/ mobile/manufactured homes, the limit
will be based upon the acceptable bid price of a replacement home of
comparable size. 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, unless approved by the
County Commission or its PA.
Necessary CDBG approved site improvements, including water supply, sewage
disposal, and clearance, will also be provided along with the actual dwelling
replacement.
P. Temporary Relocation
The CDBG Housing program provides an allowance for temporary relocation
assistance to qualified persons who need to relocate while the work is being
completed on their primary residence. The County will either;
1. Assist eligible Applicants with up to one thousand dollars ($1,000.00) of
Assistance ($500 at move out and $500 upon return: Award of temporary
relocation assistance is based upon the availability of funds.
Q. Contracting and Commencement of Construction
The HRS recommends the contract amount and contractor to the PA before the
DPL and contract are signed. The DPL amount, contract amount, contractor, unit
and owner eligibility are all approved by the PA.
The rehabilitation contract is then executed between the Applicant homeowner(s)
and the Contractor. The contract should contain all federal provisions, including
but not limited to EEO, Section 3, W/MBE, drug free work place, and insurance
statements. The DPL is executed by the PA on behalf of the County
simultaneously with the construction contract, with the three (3) day rescission
period running simultaneously for both legal agreements.
For all units, the DPL and the Notice of Commencement are recorded
immediately, no more than three business days of execution. The program pays
for recording of the Agreement. The filing of the Notice of Commencement shall
be the responsibility of the Contractor.
The Notice to Proceed is issued to the contractor as soon as possible after the
rescission period elapses. For the CDBG and DRI categories, when temporary
relocation of the occupants is required, the Notice -to -Proceed will be delayed
until the unit is vacated. The contract time of performance (generally 30 - 45 days
46
for rehabilitation and 90 - 180 days for replacement or redevelopment) begins
with issuance of the Notice to Proceed. The HRS shall recommend the
appropriate contract period based on the type, size and complexity of the work.
R. Construction Progress Inspections
Periodic inspections of the rehabilitation construction are performed by the
County and the HRS 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.
Inspection and approval of completed work must be conducted by the HRS prior
to the contractor receiving partial or final payment. The Applicant homeowner's
acceptance of the work is also required before payment is received. No final
payments will be issued until the County Building Department issues a Certificate
of Completion or Certificate of Occupancy and all lien wavers are collected and
cleared.
S. 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 may be executed by the Applicant
homeowner and contractor and is approved by the HRS and the PA. All change
orders must be approved by the PA and the HRS. Change orders may also be
issued to correct code deficiencies, or to obtain any other desired change in the
work. CDBG funds can only be for Change Orders that correct code violations as
documented by the local building department, a bonafide code violation report,
time, or to meet Section 8 HQS found after rehabilitation begins.
For CDBG and DRI categories, additional non -code -related changes will be at
the Applicant homeowner's expense.
T. Payment
Contractor payments are to be consistent with local policy, unless otherwise
approved by the County and the funding agency as allowable by all applicable
regulations. Specific payment policy depends on the program, and the type and
amount of assistance being provided and the contract awarded.
There will be NO payments shall not be processed without proper signatures
from the owner, the contractor, the HRs, and the PA. Also no payments shall be
processed without completed primary and subcontractor lien waivers as
applicable to the contract award or as required by the local policy.
Contractor Payment request and submissions should at a minimum follow these
general guidelines:
47
1. Contracts of twenty five thousand dollars ($25,000) or less will not be paid
until the Contractor has completed the job.
2. Contracts in excess of twenty five thousand dollars ($25,000) allow a partial
payment upon satisfactory completion of sixty percent (60%) (And 100%, see
below) of the rehabilitation work (less punch list items), with a retainage of
twenty percent (20%) of the completed contract amount.
3. Depending on extenuating circumstances and contract balance, a second
partial payment may be authorized at the recommendation of the HRS or PA.
Construction Completion Percentage of Funds Paid
Less than 50% 0%
50 % and all permits pulled 50%
100% 80%
100% After Certificate of Occupancy is issued
and all punch list items are completed.
Approval of a partial payment requires:
1. A determination by the HRS and the PA 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. 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.
3. Approval of the work by the Applicant homeowner and/or PA.
4. An affidavit from the Contractor stating that either:
a. There are no claims for unpaid goods and/or services connected with the
job,
a. All laborers, suppliers and subcontractors have received just
compensation for their goods,
b. Services up to the date of the request (as evidenced by full or partial
waiver of lien from subcontractors); or
c. A list of all unpaid parties and the amounts owed to each has been
submitted with the request.
The final payment approval requires:
1. Acceptance of all work by the Applicant homeowner, the HRS and the PA.
2. Submission of all manufacturers' and other warranties (e.g., appliances,
roofing, extermination, contractor's warranty covering the entire job for a
minimum one (1) year, etc.).
3. Waivers of liens from all subcontractors, all parties who were not paid when
the contractor received partial payment, and from any other party supplying
notice.
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4. A certificate of occupancy or final approval from the Building Department 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 Applicant homeowner refuses to authorize payment due to a dispute with
the Contractor, the PA may recommend disbursement without the Applicant
homeowner's approval if the claim is shown to be without merit or inconsistent
with the policies and the goals of the program. Such disbursement shall be
issued only after the PA and the HRS have reviewed the facts and circumstances
involved in the dispute and have determined that the Applicant homeowner's
refusal to issue payment is without just cause. If a person or party feels that
his/her complaint has not been sufficiently addressed by the HRS or PA, an
appeal may be made to the Citizen's Advisory Task Force (CATF) in accordance
with the County's CDBG Citizen Participation Plan. If a response satisfactory to
the aggrieved is not issued by the Committee, an appeal may be made to the
County Commission. The County Commission has the authority to uphold,
rescind or reverse a previous CATF determination. An appeal of the local
determination/decision made by the County Commission should be filed with
FDEO, as set forth in the County's CDBG Citizen Participation Plan. Sufficient
documentation to this effect shall be placed in the Applicant's file.
U. Disputes and Contract Termination
Regarding disputes, and as authorized and outlined in the construction contract,
the Homeowner and/or the County have/has the right to stop work and terminate
the contract in accordance with approved program policy.
The Applicant homeowners shall make themselves available to the Contractor to
resolve all and any issues that might facilitate completion. The Homeowner is
also requested to notify the HRS and the PA of any complaints to the Contractor
so assistance in follow-up can be provided. If the Contractor does not respond to
any oral or written complaints within a reasonable time frame and in a
satisfactory manner, the HRS will verify the complaint and report it to the PA. If
the PA judges the complaint to be valid, he/she will send a written request for
service to the Contractor and a copy to the Homeowner. The Contractor will then
take action as monitored by the HRS and the PA. Upon receiving notice that the
complaint has been satisfied, the HRS 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 including but not limited to:
1. Inability or failure to direct the work in a competent and independent manner.
2. Failure to honor warranties.
3. Ineligibility to enter into federally or state assisted contracts as determined by
the U.S. Secretary of Labor, HUD, E -Verify or FDEO.
49
4. Other just cause that would expose the local government, the Program or
Homeowner to unacceptable risk.
5. At the Contractor's or Homeowner's request with cause.
V. Project Closeout
The project award work plan and time line should be monitored on an ongoing
basis by the HRS and PA to ensure that the program is on schedule and is in
compliance with the executed funding agreement between the local government
and the funding agency. All project closeout reports and documents must be
completed and submitted to the correct funding agency on time and as required.
W. Program Compliance and Monitoring
When preparing for a compliance monitoring visit, the HRS and Program
Administrators and staff should review all Applicant and Program files for
completeness of documentation. Special attention should be given to ensure that
the income eligibility documentation is mathematically accurate and legible. All
files should be orderly and systemically organized. All financial information
relevant to each transaction should be easily found, and the files should have
copies of invoices and proof of payment. The file should be accessible and a
comfortable space should be provided for a thorough review. Copies of all
advertisement and contracts should also be available.
The following data will be provided by each housing unit as part of the
administration documentation for each activity providing direct benefit (for
example, housing rehabilitation, temporary relocation, hookups, etc.) and
summarized by activity and maintained in the program files:
1. Name of approved Applicant and address of each housing unit rehabilitated
with CDBG funds and the date the construction was completed on the
housing unit, and the amount of CDBG funds expended on that housing unit.
2. Whether the household is headed by a female, the number of handicapped
persons in the household, the number of elderly persons in the household
and VLI or LMI status of the household.
3. The number of occupants in the household, categorized by gender.
4. The racial demographics of the household by number (white, black, Hispanic,
Asian/Pacific Islander, Hasidic Jew or American Indian/Alaskan native).
III. CDBG DRI CATEGORY HOUSING REHABILIATION PROGRAM
The goal for the County CDBG Disaster Recovery Initiative (DRI) Housing
Program is to provide down payment assistance, rehabilitate or replace existing
owner occupied housing units located in the County that sustained damage as a
result of federally declared natural disaster(s).
so
A. Housing Rehab or Demo/Replace Activity — Objective
To provide a Deferred Payment Loan (DPL) to VLI and LMI income residents
whose homes were damaged by a Federally Declared Disaster. The purpose of
the program is to bring the residences that sustained damage during a federally
declared disaster up to Section 8 Minimum Property Standards, Florida
Residential Building Codes, and the local codes currently in effect in the County,
whichever is most stringent for each housing unit need.
B. Housing Rehab or Demo/Replace Activity — Financing
The type of assistance which will be available to eligible residents is known as a
Deferred Payment Loan. A brief description of this program is presented below.
The DPL is a zero (0) percent interest loan provided by the County. The funding
for the loan will come from the County's CDBG DRI Program. The DPL will be
secured by a recorded mortgage on the Applicant's property. A DPL will be
available for all approved Applicants contingent upon available funding. VLI and
LMI Applicants will qualify for a DPL wherein the DPL Amount will be forgiven in
annual increments as described in the CDBG Program Operational Procedures
section of this document.
C. Housing Rehab or Demo/Replace Activity — Eligibility
1. Only those mobile home properties that are conventionally built structures
and mobile homes built after January 1997, which are owner -occupied and
located within the County, will be considered for participation in the
rehabilitation program. No mobile homes built prior to December 31, 1996 will
be considered for rehabilitation.
2. Applicants' incomes must fall within the HUD Section 8 Income Limit
guidelines as published by HUD and/or the State of Florida for the region.
3. Priority will be given to Applicants who sustained damage from a federally
declared disaster in the following order:
a. Participants who responded to the County's advertised request for
Applicants whose residences were impacted by the disaster events and
who have been qualified and ranked by the County for inclusion in the
Disaster Recovery programs, provided the County solicitation for affected
Applicants took place after the declared events covered in a federal
declaration.
b. If the current list of Applicants does not obligate all of the available
funding, then a new solicitation for impacted residents will be published.
c. All other Applicant eligibility requirements are described in the CDBG
Operational Procedures section of this document.
d. Priority will be given to Applicants who sustained damage in a Federally
Declared Disaster.
e. No geographic distribution of funding shall be considered, except where
specified in the State Sub -recipient Agreement.
51
4. To select Applicants in both the Rehabilitation and Permanent Relocation
Activities, the following steps will be taken:
a. The County will utilize the list of potential Applicants developed from
previous solicitations (SHIP, HHRP, FEMA) when available for the
Federally Declared Disaster.
b. If sufficient clients are not obtained from the previous solicitations, 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. Applications will be accepted by
the County for a minimum thirty (30) calendar days after the notice is
placed.
c. Local organizations which normally work with clientele that may qualify for
the program shall be contacted.
d. Prior Applicants who have applied for but did not receive County
CDBG/DRI assistance will be contacted and advised of the funding
assistance and requested to submit an Application.
Once a list of potential Applicants is obtained, the HRS shall perform initial
inspections on the dwellings to determine which of the following categories they
fall into:
D. For conventionally ("site") built structures and modular homes:
1. Rehabilitation for these structures is not to exceed eighty thousand dollars
($80,000.00).
2. If the cost of correcting all existing code violations is estimated to exceed
eighty thousand dollars ($80,000.00) or, the unit is deemed structurally
unsound and not feasible for rehabilitation, the dwelling will be considered for
Demolition Replacement, wherein the Applicant homeowner provides the
additional funding needed to complete new construction or where additional
funds have been appropriated to the program for the specific purpose of
demolition/replacement.
E. For mobile homes built after 1996 (CDBG DRI only):
1. Rehabilitation for these structures is not to exceed twenty thousand dollars
($20,000.00).
2. Replacement housing — if the cost of correcting all existing code violations
exceeds twenty thousand dollars ($20,000.00), or if the mobile home is
deemed structurally unsound and not feasible for rehabilitation the dwelling
will be considered for demolition replacement, wherein the Applicant
homeowner provides the additional funding needed to complete new
construction or where additional funds have been appropriated to the program
for the specific purpose of demolition/replacement.
s2
F. Temporary Relocation:
The CDBG/DRI Housing program provides an allowance for temporary relocation
assistance to qualified Applicants who need to relocate while the work is being
completed on their primary residence. The County will: 1) assist eligible
Applicants with up to $1,000.00 of assistance,
G. Applicant Requirements:
1. Applicants must be income eligible in accordance with HUD LMI income
requirements.
2. Applicants must be able to produce clear title in order to receive assistance
from the CDBG/DRI program. The County is not providing funds for the entire
rehabilitation cost of the home. Other funds or match funds could be utilized.
3. The Applicant must complete a Purchase Assistance Application.
4. Applicants must sign the County's Mortgage and Promissory note. The
County's mortgage (typically a second mortgage) is forgiven after 5, 10, 15, or
20 years — depending on the amount of assistance received.
5. Total household income cannot exceed eighty percent (80%) of the Area
Median Income (AMI). Please see HUD income guidelines.
6. Applicants must be able to verify and document all income and assets of
household members above eighteen (18) years of age residing in the housing
unit.
7. Applicants are processed and served on a `first come, first qualified, first
served' basis.
H. Program Benefits:
1. CDBG funds can be used to pay up to $80,000.00 of the Applicants' required
rehabilitation to address code violation corrections.
2. Increase housing stock; remove slum and blight conditions, correct code
violations.
3. Address health and safety conditions and concerns.
4. Increase County tax base.
5. Increase homeownership.
6. Assistance with the rehabilitation process.
Eligible Properties:
1. Single -Family Homes.
2. Townhomes, Condominiums units and Duplexes.
3. Mobile Home built after Jan. 1, 1997 (CDBG DRI only).
4. Limitations on maximum CDBG rehab costs - $80,000.00.
5. All properties must have an inspection.
6. All properties must have clear title pursuant to HUD definitions.
7. Properties must be appropriately zoned.
8. Not located in flood zones.
9. Life estates are permitted under this program.
10. Property must be owned and not rented or leased.
11.All properties must be located in the unincorporated limits of the County.
53
J. CDBG, DRI rehab and demo/replacement activity — financing
The type of financing assistance which will be available to eligible Applicant
homeowners is known as a Deferred Payment Loan (DPL). A description of this
program is outlined in the CDBG Operational Procedures Section, as well as
other places throughout this document. We have provided summary information
as follows:
1. Terms of Assistance:
A zero (0) percent interest, deferred payment loan secured by a mortgage and
note. The loan is forgivable in its entirety at the end of the term. Maximum DPL
is $80,000. Additional information is defined under Cost Feasibility and Deferred
Payment Loans.
There will be a yearly write-down of the loan after the end of each applicable full
year. The write-down will be directly correlated to the amount of the mortgage.
The mortgage and note shall provide for pro -rated repayment, which shall be due
if the home is sold, title is transferred or conveyed, or the home ceases to be the
primary residence of the Applicant homeowner during the affordability period.
2. Down Payment Assistance Activity — Objective
To provide a Deferred Payment Loan (DPL) to be utilized as down payment
assistance for VLI and LMI (up to 80% AMI) Applicants who have been approved
to purchase dwelling unit under the County CDBG/DRI program. The purpose of
the program is to provide gap financing to enable very low and low income
households to purchase affordable standard residential. Priority will be given to a
household that lost primary housing residence due to a federally declared
disaster or has been unable to obtain decent, safe, standard affordable housing
in the area as a result of federally declared disaster.
3. Down Payment Assistance Activity — Eligibility
a. Applicants' income must fall within the HUD Section 8 income limit
guidelines as published by HUD and/or the State of Florida for the region.
b. No member of the governing body, member of the CATF, employee of the
County, or relatives of any of these as defined by HUD and Florida
Statutes, shall be eligible for program participation unless they are granted
a waiver by the Florida Department of Economic Opportunity (FDEO). The
prohibition shall continue for one (1) year after an individual's relationship
with the County is terminated.
c. Priority will be given to Applicants who were forced from their homes
because of a federally declared disaster event(s) or are being forced to
vacate their existing units due to FEMA temporary living unit evacuation
requirements.
54
K. Down Payment Assistance Activity - Construction Process
Once an Applicant has been deemed eligible for the down payment assistance
activity he/she shall close on the loan and proceed with the following steps:
1. The Contractor will apply for and obtain all building permit(s) in the Applicant's
name for construction of the residence. Once the building permit is obtained
the County will provide the HRS with a copy of the building permit and all
subcontractors' permits for the project, a full set of Plans and Specifications
for the unit the Applicant is receiving and a recorded "Notice of
Commencement" for the dwelling.
2. A Pre -Construction conference will be held between the Applicants, the
County and the HRS to review the project in detail.
3. Prior to closing, the County will provide evidence of executed loan
agreements with all other agencies that are providing financing for the
construction of the dwelling unit.
4. The following documents will be executed simultaneously: An Agreement
between the County and the Applicant which allows the County to provide
down payment assistance to the Applicant in the form of a zero interest DPL.
The DPL will be used to buy down the cost of the primary mortgage and
eligible down payment and closing cost. An Agreement executed between
the Applicant and the County stating that the Applicant will live in and agree
not to sell the relocation property for the duration of the DPL, is required. The
DPL process is described in more detail in the Housing Finance section of
this document.
L. Down Payment Assistance Activity - Size Of Units
Size of units shall be based upon the following criteria concerning the current
permanent Applicant of the existing dwelling (per 24CFR:982.401)
1. No more than two (2) person of the same sex may occupy the same
bedroom.
2. Two (2) persons of the opposite sex may not occupy the same bedroom
(excluding husband and wife and very young children).
3. Only the husband, wife, dependent children (including those who are mentally
and/or physically handicapped), and family members sixty-two (62) years of
age or older and currently residing in the household will be counted in
calculating family size and the minimum number of bedrooms and square
footage allowance.
M. Down Payment Assistance Activity - Down Payment Allowances
The approved Applicant of a CDBG/DRI Down Payment Assistance Activity will
be eligible for the following Disaster Recovery Initiative Program housing
payment assistance maximum amounts, subject to Application review by the
HRS and PA, and subject to financial need on a case by case basis to meet
down payment needs and keep the primary mortgage reasonable and within
current HUD guidelines for maximum monthly rent/mortgage cost for the
household income of the Applicant:
ss
Family
Size
Up to
80% AMI
1
$20,000.00
2
$25,000.00
3
$30,000.00
4
$35,000.00
5
$40,000.00
6
$40,000.00
7
$40,000.00
8
$40,000.00
The HRS and PA will review each Applicant's case and discuss with the primary
lender and Applicant the limitations of the program. The HRS will determine the
amount of assistance needed for down payment, closing and buy down of the
primary note for each Applicant's household size and income range. The HRS
will recommend the amount to the PA and County in the best interest of the
program. If more funds are needed than allowed to make the Applicant feasible
to receive purchase assistance, other housing purchase assistance funds must
be obtained to meet HUD mortgage costs limits, or the Applicant will be rejected
as infeasible due to income limitations and the inability to keep the primary note
within the HUD guidelines (usually no more than thirty percent (30%) of gross
income for mortgage, insurance, taxes and other mortgage costs combined, but
whatever is current at the time of Application review will be used as a guide).
This Housing Assistance Plan and its Operational Procedures is adopted this
10th day of July
� S '•a
BY:
Peter D. O'Bryan, Chairman s;ti; .'oma:•
••.MfR COUNT. -
ATTEST: Jeffrey Smith, Clerk Of Circuit Court and Comptroller
BY:
"ty erk
APPROVED AS TO F POM,, LEGAL SUFFICIENCY
A f
,William K. DeBraa , Deputy County Attorney
56
APPENDIX A — DEFINITIONS
ADA - Americans with Disabilities Act—Provides federal civil rights protection to
individuals who are physically or mentally disabled. The ADA prohibits discrimination
against the disabled in employment, public services, public accommodations, and
telecommunications. Entities that are covered by the ADA must make reasonable
accommodation which involves adapting programs, facilities, or work places to allow
disabled individuals to participate in the program of services. (HUD's Access to Housing
for Persons with Disabilities, (202) 708-3287).
Affordability Period - The time period for which rent restrictions or resale restrictions
apply to housing that has been assisted by government funding.
Affordable Housing - Housing is considered to be affordable if monthly housing cost
does not exceed a certain percentage of a family's monthly income. The acceptable
percentage is thirty (30) percent of a family's adjusted gross monthly income.
Annual (Gross) Income - Total income (earned, unearned and asset income)
anticipated to be received by all persons who currently reside or intend to reside in a
program assisted -unit for the coming twelve (12) month period. When determining
whether a household is income eligible, local governments, participating jurisdictions
and project owners must use one of the following three (3) definitions of annual income:
(1) annual income as defined at 24 CFR section 5.609 (except when determining the
income of a homeowner for an owner -occupied rehabilitation project, the value of the
homeowner's primary residence may be excluded from the calculation of net family
assets); or (2) annual income as reported under the Census long -form for the most
recent available decennial Census; or (3) adjusted gross income as defined for
purposes of reporting under Internal Revenue Service (IRS) Form 1040 series for
individual federal annual income tax purposes.
Assets - Cash or non-cash item that can be converted to cash. Under most federally
and state funded housing programs, the income from an asset, either actual or imputed,
is included in a family's total household income.
Blighted structure: a structure that has substantial deterioration in which conditions
are leading to economic distress or endangerment of life, the sub -recipient jurisdiction
agrees by ordinance that the structure is blighted, and one or more of the following
factors are present:
1. Unsanitary or unsafe conditions;
2. Deterioration of site or other improvement; or
3. Faulty lot layout in relation to size, adequacy, accessibility, or usefulness.
CATF: The Citizen's Advisory Task Force which the State's sub -recipient must create in
order to provide public participation and comply with citizen participation requirements.
57
CDBG - Community Development Block Grant - The U.S. Department of Housing
and Urban Development (HUD) administers two CDBG programs. Under the CDBG
Entitlement Program, HUD provides funds directly to urban counties and metropolitan
cities based on a population- based formula. The CDBG Small Cities Program,
administered by FDEO, Bureau of Community Development, awards grants on a
competitive basis to non -entitlement counties, cities, and towns in Florida.
Closing - The final procedure in a real estate sale, in which property ownership is
transferred in exchange for an agreed upon payment.
FDEO — Florida Department of Economic Opportunity —DEO fulfills three major roles
in developing and implementing policy in the State of Florida which are: housing and
community development, emergency management, and resource planning and
management. DEO's activities are accomplished through the following.. providing
technical assistance; planning projects; administering grant programs; reviewing plans,
programs and developments; intergovernmental coordination; and, fostering
public/private partnerships.
Deed - A legal instrument that transfers property ownership from one party to another.
Deferred Payment Loan - Funds provided to a borrower under terms that calls for
repayment to be delayed for a certain length of time, until certain circumstances
change, or a certain threshold is met. In housing programs, deferred payment loans are
often used as an affordability mechanism. In home ownership programs the loans often
become due when the assisted family sells the home. Under rental programs the loans
often become due if the affordability requirements are breached. In most housing
programs these loans have an interest rate of zero percent; in some communities
interest does accrue.
Demographic Data - Information about the characteristics of human populations,
including size, income, age, wealth, race, ethniCounty, gender, housing conditions, etc.
Eligible Household - An individual, family or group of individuals living together as a
unit, determined to be of very low income (30%-50% of AMI), low-income (50% -not to
exceed 80% of AMI) for participation in the Small Cities CDBG and DRI programs.
Fair Housing Act - The Fair Housing Act makes it illegal to deny housing, refuse to
rent, sell, or negotiate, or offer different terms and considerations because of race,
color, religion, sex, national origin, handicap, or familial status. If you suspect violation
of the Fair Housing Act or want more information, you may contact the U.S. Department
of Housing and Urban Development, Office of Fair Housing and Equal Opportunity, 451
7th Street, SW, Washington, D.C. 20410-2000, 1-800-669-9777.
Household - Individual, family, or group of individuals living together in a unit.
58
HUD - U.S. Department of Housing and Urban Development - The department within
the federal government that is mandated by Congress to create conditions for every
family to have decent and affordable housing, to ensure equal housing opportunities for
all, and to strengthen and enrich the nation's communities. Offices are located at the
national and state levels. HUD Locator for general information: (202) 708-1422;
Affordable housing information center: (800) 998-9999. The State Coordinators' Office
(serves South Florida): Brickell Plaza Federal Building, 909 SE First Avenue, Room
500, Miami, Florida 33131-3028; phone: (305) 536-5678; fax: (305) 536:5765; website:
http://www.hud.gov/local/fl/working/miamioffice.cfm. The Jacksonville office (serves
North and Central Florida: 401 West Bay Street, Suite 1015, Jacksonville, Florida
32202; (904) 232-2627; fax: (904) 232-3759; web site: fl/working/jksoffice.cfm.
Lien - Recorded claim against a property whereby the property is security for a debt.
Under certain circumstances, the holder of the lien is entitled to have the property sold
to satisfy the debt. A lien is an encumbrance against the property.
Low -Income Person or Household - A person or household whose annual (gross)
income does not exceed eighty percent (80%) of the Area Median Income, as
determined by HUD, with adjustments for smaller and larger families.
Median Income - A determination made through statistical methods establishing a
middle point for determining income limits. Median is the amount that divides the
distribution into two equal groups: one group having income above the median and the
other group having income below the median.
Mortgage - A temporary and conditional pledge of property to a creditor as security for
the repayment of a debt. The borrower (mortgagor) retains possession and use of the
property.
Reconstruction - Rebuilding of a structure, usually on the same foundation as the
existing housing which will be demolished.
Rehabilitation - The alteration, improvement or modification of an existing structure.
Section 504 - Section of the Handicapped Accessibility/Architectural Barriers Act that
Requires all public buildings to be designed, constructed, or renovated to provide
access for physically handicapped persons.
Very Low -Low -Income Person or Household - A person or household whose annual
(gross) income does not exceed fifty percent (50%) of the area median income, as
determined by HUD, with adjustments for smaller and larger families.
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APPENDIX A — RESOURCES
Income Verification Resources:
https://www.hudexchange.info/incomecaIculator/
Link to HUD and HOME Sample Income Verification and Contract documents:
https://www.hudexchange.info/resources/
HUD income limits;\
https://www.hudexchange.info/resource/5334/cdbg-income-Iimits/
Section 3 and W/MBE Resources:
https•//www hudexchange info/resources/documents/24-Cfr-Part-135-Section-3-Regulations.pdf
State of Florida W/MBE directory:
https://www.dms.mvflorida.com/agency administration/office of supplier diversity osd/
Davis Bacon Resources:
HUD Handbook 1344 .1, Federal Labor Standards Compliance in Housing and Community
Development Programs
Making Davis -Bacon Work: A Practical Guide for States Indian Tribes and Local Agencies
A Contractor's Guide to Prevailing Wage Requirements
Fair Housing Link:
www.hud.gov/fairhousinq
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APPENDIX B - Point Values to be Used in Ranking Applicants
Priority and point value will be based on the following table:
Priority
Point Value
Disabled and/or Handicapped Head of Household
10
Very Low Income Households (50% or less of the county's median
household income
10
Elderly Head of Household over 62 years of age)
10
Low Income Households (between 51-80% of the county's median
household income
5
Families with Handicapped Dependents
5
Large Families five or more
5
Small Families four or less
3
Families with Elderly Dependents
3
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