2010-08 Local Housing Assistance Plan for CDBG'sRESOLUTION NO. 10 -08
A RESOLUTION OF THE CITY OF OKEECHOBEE, ADOPTING FISCAL
YEAR 2009/2010 LOCAL HOUSING ASSISTANCE PLAN FOR THE
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM; PROVIDING
FOR PUBLIC HEARING AND COMMENT; PROVIDING FOR
SEVERABILITY; PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City of Okeechobee, Florida recognizes the need to establish local policy
guidelines for their FY 2009/2010 Community Development Block Grant (CDBG)
Housing Program; and
WHEREAS, the City of Okeechobee, Florida has developed the "City of Okeechobee FY
2009/2010 Local Housing Assistance Plan" that conforms with the application
requirements for the CDBG Housing Program which is adopted as part of Florida
Administrative Code Rule 9B -43 that governs the CDBG program, and
WHEREAS, it is the intent of the City of Okeechobee, to the greatest extent feasible, to
improve the housing standards for the very low and low -to- moderate income
residents of the City through the use of CDBG and other Okeechobee County
Housing programs.
NOW, THEREFORE, be it resolved before the City Council for the City of Okeechobee,
Florida; presented at a duly advertised public meeting; and passed by majority vote
of the City Council; and properly executed by the Mayor or designee, as Chief
Presiding Officer for the City:
SECTION 1.
That the City Council for the City of Okeechobee, Florida, hereby adopts the "City of
Okeechobee Fiscal Year 2009/2010 Local Housing Assistance Plan" for the
Community Development Block Grant Program.
SECTION 2.
That the City Administrator and /or his designee coordinate the implementation of
said Plan.
SECTION 3.
That all resolutions or parts of resolutions in conflict with this Resolution are hereby
repealed to the extent of such conflict.
SECTION 4. EFFECTIVE DATE.
This resolution shall become effective immediately upon its adoption.
INTRODUCED AND ADOPTED in regular session this 20` day of July, 2010.
Lane`Qamiotea, CMC, City Clerk
REVIEW D FOR LEGAL S FICIENCY:
John R. Cook, City Attorney
Resolution No. 10 -08 Page 1 of 29
D ling R. Watford, Jr., Mayor Pro Tempore
CITY OF OKEECHOBEE
HOUSING ASSISTANCE PLAN GUIDELINES
FOR THE FFY 2009/2010
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
Prepared by
City of Okeechobee
55 S.E. Third Avenue
Okeechobee, Florida 34974
With Assistance from
Nancy Phillips and Associates
7408 Edisto Drive
Lake Worth, Florida 33467
561- 432 -1524
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Resolution No. 10 -08 Page 2 of 29
Section
Title
Page Number
I.
Purpose of Program
3
II.
Designated Authority
3
III.
Definitions
3
IV.
Housing Rehabilitation Objectives and Policies
4
V.
Applicant Eligibility
5
VI.
System of Applicant Selection
6
VII.
Conflict of Interest
9
VIII.
Property Eligibility
10
IX.
Structural Requirements
13
X.
Housing Rehabilitation Financing
15
XI.
Procedures
16
XII.
Clearance/Permanent Relocation/Demolition Relocation
23
XIII.
Insurance
24
XIV.
Relocation/Displacement
24
XV.
Appeals /Complaints
24
XVI.
Program Income
25
XVII.
Reports, Records and Data
25
XVIII.
Property Acquisition Policy
26
XIX.
Amendments
28
TABLE OF CONTENTS
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Resolution No. 10 -08 Page 3 of 29
CITY OF OKEECHOBEE
HOUSING ASSISTANCE PLAN GUIDELINES
FOR THE 2009/2010
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
I. PURPOSE OF THE PROGRAM
A. Project Area
City of Okeechobee, Florida, hereinafter referred to as the City, shall provide
financial assistance to those qualified applicants residing in the city limits of the City of
Okeechobee.
B. Purpose of Assistance
The sole purpose of the financial assistance shall be to provide decent, safe and
sanitary housing for very low and low -to- moderate income residents. This assistance will be
provided through the rehabilitation of existing structures that are deemed to have "substandard"
conditions that need to be corrected. Also, assistance may be provided for the demolition and
replacement of homes as deemed to be "unrepairable Work will be undertaken to bring the
structures into compliance with the Florida Building Code, the City's Housing Code and other
applicable local codes.
The construction work on a dwelling unit will be completed by a state registered
or certified general contractor, certified building contractor, and certified residential contractor
who is licensed by the Florida Department of Business and Professional Regulation.
C. Operating Rules and Regulations
This program shall be operated in accordance with all applicable rules and regulations of
the City, the State of Florida and the U.S. Department of Housing and Urban Development.
II. DESIGNATED AUTHORITY
A. Designated Approval Officer
The City Administrator or his/her designee is designated as the approval officer.
III. DEFINITIONS
For the purposes of this plan, the following definitions shall apply:
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Resolution No. 10 -08 Page 4 of 29
A. Home A housing unit constructed on the owner- occupied site either of masonry
or frame construction materials.
B. Manufactured and/or Modular Home A manufactured home fabricated on or after
June 15, 1976, in an off -site manufacturing facility for installation or assembly at the owner
occupied building site on a permanent foundation with each section bearing a seal certifying that
it is built in compliance with the Federal Manufactured Home Construction and Safety Standards
Act.
C. Mobile Home A structure transportable in one or more sections that is which is 8
body feet or more in width and is built on an integral chassis and designed to be used a dwelling
when connected to required utilities.
D. Owner- Occupied The applicant must be the owner of the housing unit to receive
assistance and must reside in the home at the time of submitting an application for assistance to
the City. The Okeechobee County Property Appraisers' records and an Ownership and
Encumbrance Certificate will be used to verify ownership.
IV. HOUSING REHABILITATION OBJECTIVES AND POLICIES
A. Objectives
The objectives of the City of Okeechobee CDBG Housing Rehabilitation Program are:
1. To encourage the revitalization of very low and low -to- moderate income
neighborhoods through a Housing Rehabilitation Deferred Payment Loan (DPL) Program.
2. To remove unhealthy or hazardous conditions in low -to- moderate income
households.
3. To use Community Development Block Grant rehabilitation grant funds as a
catalyst to encourage residents of very low and low -to- moderate income neighborhoods to
improve their community.
4. To preserve existing housing stock, or replacement of substandard housing.
5. To enable very low and low -to- moderate income families to rehabilitate their
homes by providing financial and technical assistance to those unable to obtain private financing.
6. To reduce utility costs and to improve the comfort of very low and low -to-
moderate income families through weatherization aspects of rehabilitation.
7. To improve the property tax base in very low and low -to- moderate income
neighborhoods.
8. To increase employment and training opportunities for local residents and
minority persons through the provision of funds for the rehabilitation of homes.
9. To make homes accessible to elderly/handicapped occupants as may be required
by code, accessibility requirements and as good judgment may dictate.
10. To minimize impact of program participation on recipients and to limit direct
costs encountered because of program participation.
B. Rehabilitation Policies
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Resolution No. 10 -08 Page 5 of 29
It is the policy of the City of Okeechobee CDBG Housing Rehabilitation Program to:
1. Assure that the Program rules and administered
applicable local, conformance
and with
federal
community development and rehabilitation
requirements (including equal opportunity, conflict of interest, etc.)
2. Treat all participating property owners, residents, and contractors fairly, with
sensitivity and respect for their needs, and in accordance with program rules.
3. Provide all program participants any reasonable assistance necessary to carry out
the objectives of the program, bearing in mind:
1) that property owners hold the primary responsibility for maintaining their
property and personal finances,
2) that contractors are primarily responsible for the quality of their work and
their obligations to suppliers, creditors, subcontractors and employees; and
3) that any assistance provided must be authorized at the proper level.
4. Assure that no member of the Congress of the United States, the Citizen Advisory
Task Force or the City of Okeechobee City Council shall share in proceeds or benefits of CDBG
funded rehabilitation work, unless approved by the Florida Department of Community Affairs.
5. Allow some flexibility in administering the program in order to meet the
program's goals and objectives of rehabilitating each addressed dwelling to bring it up to
applicable local building codes and the Florida Building Code. The City of Okeechobee City
Council may waive program rules only when the result will be consistent with established goals
and objectives, and applicable federal, state or local regulations.
6. Housing rehabilitation will be the first priority, with housing replacement units being
addressed when program funds are available. No housing units will be demolished and
converted to non -LMI housing structures.
V. APPLICANT ELIGIBILITY
A. Tenure Characteristics
In order to receive Housing Rehabilitation Assistance, an individual or family
making application for assistance must be the homeowner who is occupying a residential unit
located within the City. The property must be owner- occupied at the time of submitting an
application for assistance to the City for consideration. All property taxes must be paid up -to-
date, the property must be without judgments and /or liens, and not be in any form of foreclosure.
Also, the financial resources of the household must not exceed the very low and low- and
moderate income standards distributed by HUD for the program year(s) that assistance is being
provided.
The applicant will be considered the owner if he /she:
1. Is the "owner of record" on the official property records on file with the
Okeechobee County Clerk of the Circuit Court and Okeechobee County Property Appraiser;
2. The owner must possess and provide clear title to the property, although it
may be jointly owned and the property may be mortgaged. Ownership through life estate, heir
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Resolution No. 10 -08 Page 6 of 29
property or other legal satisfactorily documented ownership is considered satisfactory for
program participation. Providing proof of title is an owner responsibility and expense. Property
must have been granted "homestead exemption" to receive assistance.
3. The owner must reside in the dwelling to be rehabilitated for at least one
year prior to the time of application
4. Property tax, mortgage payments and utility bills must be current and
ownership must not be jeopardized by any other threat of foreclosure, default or
clouded title.
5. Residents and owners of rental property, including rental duplexes, are not
eligible to participate in the program.
B. Low- to Moderate Income Requirements
Individuals or families must meet the low- to moderate income eligibility
requirements and be owner occupants currently residing in the residential unit to be rehabilitated.
For the purposes of income eligibility, income shall be determined as provided for by the U.S.
Department of Urban Development Section 8 Program Household Income Limits as specified in
24 C.F.R. 813.106.
Income from all sources of any family member including individuals who are 16
years of age or older and who reside in the dwelling unit of the applicant shall be counted as a
part of the income. Income is the amount from the following sources, but not limited to such
sources: gross salaries, including tips, bonuses, Councils, overtime pay; pensions and annuities;
business profit for self employed persons, including farmers; interest and dividends; any public
assistance, including Aid to Families with Dependent Children, Supplemental Security Income,
unemployment compensation; Social Security; estate or trust income; rental income; and gains
from sale of property or securities, including contract for deed, and child support and alimony.
The most recently issued low income family standards under the Housing Act of
1937 as prepared by the U.S. Department of Housing and Urban Development shall be used to
determine eligibility for Housing Rehabilitation Assistance.
The low income limits for families larger than eight persons will be determined
by adding 6.25 percent of the four- person income limit base to the eight person limit for each
person in excess of eight. The limits developed by the use of these factors will be rounded to the
nearest $50.
VI. SYSTEM FOR APPLICANT SELECTION
A. Application Processing Methods
An advertisement may be placed in the local newspaper and a public service
announcement may be broadcast on a local radio station notifying residents of an application
period, if applicable. Community meetings advising potential beneficiaries of the program might
also be held if the City so desires. The City may also elect to utilize the listing of potential
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Resolution No. 10 -08 Page 7 of 29
beneficiaries who have made application to the housing programs administered by the
Okeechobee County SHIP Department as potential Community Development Block Grant
beneficiaries.
The application form for eligibility determination must be completed by the
applicant. Applications may be obtained at City Hall located at 55 S.E. Third Avenue between
9:00 a.m. and 12:00 p.m. and 1:00 p.m. and 4:00 p.m. Monday through Friday. The application
shall be returned to the City Hall with the following documentation:
To Verify Examples of Acceptable Documents
Residency: Drivers license, voters registration or a utility bill.
Legal Ownership: Deed of record
Income/Wages: Pay stubs or letter from employers (past or present),
social security allotment letter and other similar
documents. This pertains to all working family
members.
Family Members:
Public Assistance:
Copy of all household members Social Security
Cards, birth certificates or a notarized statement
from a neighbor or friend stating how many
individuals live in the household.
Letter from the Florida Department of Health and
Rehabilitative Services concerning Food Stamp,
Aid to Families with Dependent Children or any
other public assistance, indicating the amount of
assistance and the number of persons in the family.
The application process will have a noticed cut off date for the receipt of
Applications, if a public advertisement is used to solicit applicants. Applications received after
the noticed cut off date shall be considered on a "first come, first completed" basis after the
primary list of applicants has been considered.
An applicant shall be considered eligible for Housing Rehabilitation Assistance if
they meet the income requirements and their dwelling unit is suitable for rehabilitation.
To be suitable for rehabilitation, the dwelling must be inspected by a
representative of the City's Building Department, if available, and Housing Rehabilitation
Specialist and determined to be in a "substandard" condition. Only code violations will be
addressed with the CDBG funds. A cost estimate of repairs will be prepared based on the needs
identified in the initial inspection and work write -up.
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Resolution No. 10 -08 Page 8 of 29
PRIORITY
POINT VALUE
Very Low Income Families
30
Low Income Families
30
Elderly
30
Disabled
30
Female Head of Household (Single with at least 1 dependent)
30
Male Head of Household (Single with at least 1 dependent)
30
order:
Completed applications shall be considered giving preference in the following
If CDBG assistance has been provided in the last seven (7) years, the applicant
shall not be eligible to receive assistance under the FY 2009/2010 program unless they are of
very low income status.
The City will not discriminate against any applicant for assistance because of
race, color, religion, sex, familial status, handicap, national origin or age.
B. Identification of Units
Housing Rehabilitation will take place only on units approved by City of
Okeechobee in accordance with grant requirements established by the State of Florida. Alternate
units may be provided to replace any primary units that may become ineligible. The City will
review applications received using the following selection criteria:
1. 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. 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 specifically
prohibited by local or state regulations.
2. Location of the residence with reference to defined areas, i.e., floodplain,
zoning, incompatible use, etc.
3. Compatibility (consistency) of the proposed residence rehabilitation with
the local comprehensive plan and/or land development regulations.
4. Recipients' 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.
5. Is the structure more than 50 years old? The applicant shall indicate on
the application form whether to his/her knowledge the structure is older than 50 years old. If
he /she answers yes, or if other evidence suggests the structure is more than 50 years old, the City
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.
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Resolution No. 10 -08 Page 9 of 29
6. This program will not assist in the rehabilitation or replacement of rental
housing structures.
C. Approval of Ranking, and Removal of Units from the Program
The Housing Rehabilitation Specialist and the Project Administrator shall review and
rank the applications based on the criteria noted above. A listing by name and address will be
provided to the City Council for their approval.
An applicant shall be notified via mail or telephone after the application is reviewed.
Final eligibility approval will be given after approval of the work write -up and award by the City
Council. In all cases, it is understood that the financial limitations associated with a Community
Development Block Grant Housing program, specifically addressing the number of units
required to be completed under the activity and program shall be an overriding factor in
determining which units shall ultimately be addressed.
The Housing Rehabilitation Specialist and/or the Project Administrator may remove a
housing unit from the program for a change in household income, approved selection criteria, or
for not complying with the minimum qualification procedures. If it is determined that it is
necessary to remove an applicant from the program, a certified letter will be sent to the applicant
stating the reasons for the removal. The applicant will have the right to appeal the decision as
identified in the following Complaint Procedures or as noted in the Citizen Participation Plan.
D. Complaint Procedures
Complaints concerning the Housing Rehabilitation Assistance program shall be made in
writing and addressed to the City Administrator within fifteen (15) working days of
commencement of the dispute. The City Administrator will contact the complainant and attempt
to resolve the problem. The City Administrator shall issue a written response to the complainant
within fifteen (15) working days of receipt of a written complaint.
If 'the complainant is not satisfied with the City Administrator's response, he /she
may file an appeal within fifteen (15) working days of receipt of the written decision by the
claimant to the City Council.
The City Council shall consider the recommendation at its next regularly
scheduled meeting. A decision shall be made by the City Council at such meeting. The decision
of the City Council shall be the final authority concerning the complaint.
VII. CONFLICT OF INTEREST
All applicants that may have a business or familial relationship with a member of the City
of Okeechobee City Council, Housing Rehabilitation Specialist, Program Administrator, or
participating construction contractors must fully disclose this relationship on the Application and
definitely before a construction contract is executed.
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Resolution No. 10 -08 Page 10 of 29
In addition, all beneficiary names and addresses must be disclosed at the regular meetings
of the City of Okeechobee City Council as selection of beneficiaries occur and these names and
addresses must be included in the minutes of the City Council. The City Council must disclose
icant. As
any relationship with an applicant and must
abstain f that any anking and related
opc o f of
soon as a final ranking of the applications
interest must be made known at a meeting of the City Council.
For a person with a potential conflict of interest to be eligible to participate in the
program, the following steps must be taken:
1. The person must declare on the application form that a conflict of interest
may exist.
2. The governing body must decide whether to proceed requesting a waiver
on the potential participant dispute the conflict of interest.
3. If the person who the conflict on interest exists with is a voting member of
the governing body, that person must declare a conflict of interest and not
vote on the potential participant.
4. The City Attorney shall prepare a written document stating in his/her
opinion proceeding with potential participant's residence would not
violate any state or local law.
5. A written request for waiver is sent by the City to DCA for review and
comment.
6. If a waiver is obtained, the potential participant would be placed with
other potential participants as outlined herein.
No dwelling unit owner, lessor, lessee, tenant, or occupant, or employee or
immediate relative of the same, either personally or corporately, shall serve as a contractor or
subcontractor to be paid with Community Development Block Grant funds for the rehabilitation
of said building, nor shall they be paid for their own labor with Community Development Block
Grant funds for the rehabilitation of said dwelling unit.
VIII. PROPERTY ELIGIBILITY
A. Unit Characteristics
Only single family owner- occupied dwelling units consisting of site built homes,
modular or manufactured homes that have the "blue DCA" decal are eligible for Housing
Rehabilitation Assistance. Multiple family and/or rental dwelling units and mobile homes,
modular homes or other forms of manufactured housing that do not have the "blue DCA" decal
are not eligible for Housing Rehabilitation Assistance. At no time will mobile homes, modular
homes or other forms of manufactured homes received CDBG assistance unless they are
provided assistance under the Demo/Replacement program.
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Resolution No. 10 -08 Page 11 of 29
Documentation from the Okeechobee County Property's Appraisers office shall
be obtained to assist in determining the age of the housing unit. If the housing unit is determined
to be older than fifty (50) years, pictures shall be taken of the housing unit and submitted to the
Florida Bureau of Historic Preservation for guidance.
The single family dwelling unit and property is required to be in compliance with
other appropriate local codes (i.e. nuisance, trash or other environmental or health codes) prior to
initiation of housing rehabilitation construction.
B. Condition and One -to -One Ratio
After rehabilitation, all dwelling units addressed with Community Development
Block Grant funds shall be in compliance with the local housing codes and the Florida Building
Code.
Upon completion of the rehabilitation of each dwelling unit, the ratio of the cost
of housing rehabilitation to the projected market value of the rehabilitated dwelling unit shall be
at least one to one. Example: if post rehabilitation value of $30,000 is less than the cost of
rehabilitation work -write up of $35,000, the City may elect to cover the costs for a new site built
home to be constructed on the owner's property if adequate funds are available.
C. Types of Costs, Improvements and Activities
Eligible Costs:
Housing Rehabilitation Assistance shall be used only for those repairs and/or
replacements which are necessary to correct violations of the Florida Building Code, the City's
Housing Code and/or local codes, eligible items designated by the Florida Department of
Community Affairs including the listed items:
Eligible Improvements:
1. Any improvement required to bring the housing unit up to code, including,
but not limited, to:
A. Structural system
B. Electrical system
C. Plumbing system
D. HVAC and Heating system shall have a SEER rating of at least 14
E. Windows and Hurricane Protection
F. Insulation
G. Kitchen cabinets
H. Stove and refrigerator
1. Roofing system
J. Extra bedrooms (if required due to family size)
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Resolution No. 10 -08 Page 12 of 29
K. Ceramic Tile Floor for durability and mobility purposes
L. Energy Star Rated Appliances
M. Energy Star rated windows and /or doors
N. Energy Star rated lighting fixtures
O. Weatherization activities, including, but not limited to, attics, floor
insulation (if appropriate), sealing of exterior walls (if appropriate)
2. Any improvement designated as eligible by the Florida Department of
Community Affairs;
3. Weatherization and energy conservation improvements as noted above;
4. Exterior painting;
5. Improvements to adapt the property for use by the physically handicapped;
6. Improvements necessary to meet flood hazard standards; and
7. Flood hazard insurance.
nature.
All improvements must be physically attached to the property and permanent in
Upon approval of the City Council, Housing Rehabilitation Assistance may be
used to rehabilitate residential properties listed on the national, State, or local Registers of
Historic Places if funds are available.
Some general property improvements may be provided at the owner's expense.
Other additional improvements, above those required to achieve minimum standards, are
optional and at owner expense. The cost for any such improvements shall be borne totally by the
owner who must deposit the funds with the local government before the improvements begin if
the improvements are to be a part of the rehabilitation contract.
General property improvements that are paid for by the property owner must be
included in the Contract for Rehabilitation that is developed and administered by the Housing
Rehabilitation Program. However, ineligible new construction must be contracted separately.
The property owner must also deposit the necessary funds to cover the additional improvements
into the local government's program account. This must be done prior to construction. Otherwise,
the addition items will not be included in the construction. Furthermore, any construction not
covered in the construction contract will be inspected by the local Building Inspector, but will
not be inspected by the Housing Rehabilitation Specialist.
Ineligible Improvements:
General property improvements including, but not limited to, additions for family
rooms, carports or ineligible items as identified by the Florida Department of Community
Affairs.
Other Eligible Activities:
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Resolution No. 10 -08 Page 13 of 29
Community Development Block Grant funds may be used for temporary
relocation allowance for those occupants displaced temporarily by rehabilitation activities being
carried out with Housing Rehabilitation Assistance. Temporary relocation assistance for storage
in the amount of $200.00 per month, not to exceed $400.00 per housing applicant, may be
provided as specified in the City's Community Development Block Grant Program
Antidisplacement and Relocation Assistance Plan or City of Okeechobee Housing Assistance
Plan, whichever is greater. If the housing unit is going to be demolished and replaced, temporary
storage in an amount not to exceed $200.00 per month for the duration of the construction
period. If it becomes necessary, the City may determine that temporary relocation exceeding the
$1,000.00 limit may be required if unusual circumstances exist. In rare circumstances, funds
may be available to assist with temporary rental while a home is being demolished and a
replacement housing constructed. The payment of fair market rent shall be strictly adhered to.
IX. STRUCTURAL REQUIREMENTS
A. General
In addition to owner eligibility requirements for participation in the Housing
Rehabilitation Program, the dwelling must be deemed to be "substandard" and 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;
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 $25,000.
Houses above $25,000 will be rehabilitated using abatement procedures.
The occupants will be notified of the hazards of lead -based paint, the
symptoms and treatment of lead poisoning, how to avoid poisoning, lead
level screening requirements and appropriate abatement procedures;
c) meet applicable local zoning requirements, as well as local, state and
federal housing code requirements for rehabilitation work;
d) leave at least 20 of the original structure based upon the formula
provided in this chapter;
e) not exceed the program costs noted in this chapter; and
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
located within the 100 year flood plain shall have the lowest floor,
including basement elevated no lower than (1) foot above the base flood
elevation (or per local code). Should solid foundation perimeter walls be
used to elevate a structure, openings sufficient to facilitate the unimpeded
movements of flood waters shall be provided.
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Resolution No. 10 -08 Page 14 of 29
B. Structural Integrity
Rehabilitation requires that at least 20% of the original structure remain
after construction, based upon the following formula. Three (3) major components of the house
are considered, with each component weighted to total 100% of the structural value of the house.
These components and ratios are: roof 20 exterior walls 60 and flooring system 20
As an illustration, if 50% of the roof must be replaced, 50% of the walls
must be replaced and 25 of the flooring system (including framing) must be replaced. The
factors are then ratioed based on the 20/60/20 formula, so that 50% replacement of the roof is
equal to replacing 10% of the structure, 50% replacement of the exterior walls equals 30%
replacement of the structure, and 25 replacement of the flooring system equals 5
replacement of the structure. Thus, replacement equals 10 plus 30 plus 5 or a total of
45% of the structure. This leaves 55 of the original structure, indicating that the structure is
feasible for rehabilitation.
This calculation will be performed by the Housing Rehabilitation
Specialist. Should significant deterioration occur between application and time the unit is
scheduled for rehabilitation, the unit will be re- evaluated for continued eligibility and a decision
made by the Housing Rehabilitation Specialist whether to replace it with an alternate unit or to
request a change in type of rehabilitation (demolition, permanent relocation, etc.) in accordance
with current DCA contract requirements.
C. Cost Feasibility
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: $59,500.00 per single family detached house including temporary
relocation.
These limits are at the allowable CDBG financing limits, and assume
requirements for owner contributions or leveraging, if these limits are exceeded. The limits may
be exceeded for rehabilitation costs when alternative funds are available for leveraging, but must
be specifically approved by the City Council as exceeding the described limits.
In addition, the cost of rehabilitation and improvements may not exceed
the after rehabilitation value of the dwelling. For site -built dwellings, the total cost of
rehabilitation (plus other improvements, if any) may not exceed $75 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.
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Resolution No. 10 -08 Page 15 of 29
X. HOUSING REHABILITATION FINANCING
The Housing Rehabilitation Program provides financing to homeowners in the form of
100% Deferred Payment Loans, the amount of which shall include the accepted bid amount plus
a contingency reserve.
A. Deferred Payment Loans (DPL)
Deferred Payment Loans are conditional grants, and are provided to homeowners who are
unable or unlikely to obtain conventional financing due to their income limits. The Deferred
Payment Loan (DPL) involves a security instrument (lien) requiring repayment of the loan only
if the homeowner sells or transfers ownership of the rehabilitated home, ceases to use it as
his/her primary residence within five years of the date of the DPL or within ten years of the date
of the DPL for a demo /replacement project, or fails to maintain reasonable required standards of
care and maintenance. During the five -year or ten -year period, the principal is "forgiven" or
subtracted from the principal balance in equal monthly amounts, so that at the end of the fifth or
tenth year of owner occupancy (by at least one of the recipients if owned jointly), the loan is
fully amortized. There is no interest charged during the time period of the DPL.
In the event that the sole owner dies or both/all owners die within the DPL loan period,
repayment of the loan will not be required as long as their heirs are deemed to be very low and/or
low -to- moderate income.
If repayment of a DPL becomes due, the prorated 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 City Council may, at
their discretion, allow repayment of the DPL over a term not to exceed ten (10) years, at a yield
of not more than 1% below the FHA rate at the time the DPA becomes due.
Homeowners whose household incomes do not exceed the HUD Section 8 low -to-
moderate income limit will receive a Deferred Payment Loan for 100% of the cost of
rehabilitation.
No funds will be provided for vacant, renter occupied or commercial properties. With
the exception of the demolition/relocation program, where the owner of a dilapidated structure
received a payment for a replacement structure and the existing structure is removed, no existing
very low and/or low- and moderate income housing units will be demolished or converted to
non -low and moderate income housing under this project.
The maximum DPL for an owner- occupied single family dwelling from CDBG funds is
$59,500.000 unless approved by the City Council. This amount also includes the cost of
temporary relocation activities. If rehabilitation costs require more than $59,500.00 and the
owner is unable to finance the additional cost, the dwelling unit may be disqualified unless
alternative funding is available. Grant application scoring indicates an average rehabilitation
amount that is to be attained. Very high costs frequently adversely impact other units planned for
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rehabilitation, therefore the ability to maintain the necessary average must enter into the decision
process.
As a general policy, a contingency amount of about 5% should be placed on reserve for
change orders. Exceptions may be made to this rule if the owner provides a firm commitment to
pay for all required changes exceeding the authorized loan limit, or if the Administrator
determines that the situation does not require a contingency fund.
There might be instances where it will be necessary to combine the financial resources of
the CDBG and other housing programs to provide appropriate housing assistance to the residents
of the City. In these instances, all program guidelines must be strictly adhered to.
XI. PROCEDURES
A. Application and Inspection
Each property owner who applies for rehabilitation assistance is initially screened
to determine whether he /she is eligible for a 100% Deferred Payment Loan. A preliminary
inspection is then conducted to determine feasibility of rehabilitation of the housing unit.
If either the owner or the structure does not meet eligibility requirements for
program participation, the Housing Rehabilitation Specialist will reject the application. A written
rejection notification will be sent to the owner via certified mail and the local government
designated representative within ten (10) days stating the reason for rejection.
If both the owner and the house appear to be eligible for program participation,
the application/verification process continues. A work write -up with cost estimate is developed
by the Housing Rehabilitation Specialist. The cost estimate for the job is considered confidential
information until bid opening.
If special financing arrangements (such as the owner covering excessive costs or
general property improvements) are required or anticipated, arrangements must be made prior to
bidding to prevent soliciting bids on a case that cannot be financed. When the case receives
preliminary approvals, bids are solicited for the job.
B. Solicitation of Potential Contractors
The City wishes to encourage local general contractors, building contractors, and
residential contractors to participate in the Housing Rehabilitation Assistance Program. The
construction work on a dwelling will be completed by a state registered or certified general
contractor, residential contractor, and building contractor, and who is licensed by the Florida
Department of Business and Professional Regulation.
Contractors residing or maintaining offices in the local area will be recruited
through posting of public notice to all such contractors, as part of the local government's
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Resolution No. 10 -08 Page 17 of 29
compliance with Federal Section 3 requirements. This special effort may 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 program file, if applicable.
The City shall always exercise care and good judgment in approving a contractor.
An informational meeting to discuss the CDBG program may be held with all potential
contractors who wish to participate in the program. Each contractor shall be required to
complete a Contractors Qualification Questionnaire prior to being awarded any projects.
In order to participate in the Housing Rehabilitation Program, a contractor must
be certified as eligible by the Administrator of Housing Rehabilitation.
Basic contractor qualifications include:
1. Current license(s) with the appropriate jurisdiction;
2. A satisfactory record regarding complaints filed against the contractor at the state,
federal or local level;
3. Insurance: Contractor's Public Liability Insurance in an amount not less than
1,000,000 aggregate coverage. A certificate evidencing Worker's Compensation insurance in
statutory limits in accordance with Florida law. A certificate evidencing Auto Insurance
including bodily injury in an amount not less than $1,000,000 per accident and in the aggregate.
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.
Copies of certificates shall be provided to the City. The Contractor shall provide the City with a
certificate of insurance from the insurer guaranteeing ten (10) 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
done construction;
6. Absence from any list of debarred contractors issued by the Federal or State DOL,
HUD or DCA.
The Housing Rehabilitation Specialist will assure that current and past performance of
the contractor are satisfactory based upon readily available information, and reserves the right to
check any reliable source in establishing such determination.
The Housing Rehabilitation Specialist will explain the contractor's obligations under
Federal Equal Opportunity regulations and other contractual obligations at the pre -bid
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conference. Program procedures, such as bidding and payment are also explained to the
contractor.
C. Disqualification
Contractors may be prohibited or removed from program participation for:
1. poox workmanship, or use of inferior materials;
2. evidence of bidding irregularities such as low balling, bid rigging, collusion,
kickbacks, and any other unethical practice;
3. failure to abide by the work write -up, failure to complete work write -up (and bid)
accomplishments, and any attempts to avoid specific tasks in attempts to reduce
costs;
4. failure to pay creditors, suppliers, laborers or subcontractors promptly and
completely prior to the submission of a pay application to the City;
5. disregarding contractual obligations or program procedures;
6. loss of license(s), insurance or bonding;
7. lack of reasonable cooperation with owners, rehabilitation staff or the others
involved in the work;
8. abandonment of a job;
9. failure to complete work in a timely manner;
10. inability or failure to direct the work in a competent and independent manner;
11. failure to honor warranties;
12. ineligibility to enter into federally or state assisted contracts as determined by the
U.S. Secretary of Labor, HUD or DCA;
13. other just cause that would expose the Program or owner to unacceptable risk;
14. failure to respond to a minimum of three (3) consecutive requests for bids; or
15. at the contractor's request.
D. Bidding
Bidding shall be done on a competitive bid basis. The City will advertise for bids
at least twelve (12) days prior to the bid opening in a local paper and a paper of general
circulation. A memorandum may be mailed to minority contractors and interested contractors at
least twelve (12) days prior to the bid opening.
The City will prepare the bid package, advertise and review all bids to determine
if the bid is responsible and responsive. Each contractor must attend a pre -bid conference held at
the house to be rehabilitated or demolished and a new replacement home construction. Failure to
do so will result in automatic rejection of his/her bid(s) for the house(s).
Sealed bids will be opened at a public bid opening. The bids will then be
tabulated. The City Council shall award the construction contract to the lowest responsible and
responsive bidder who is within plus or minus fifteen (15 percent of the cost estimate
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prepared by the Housing Rehabilitation Specialist. The City Council reserves the right to reject
any and all bids and to award in the best interest of the owner and the City.
No housing unit owner, or occupant, or employee or immediate relative of the
same, either personally or corporately, shall serve as a contractor or sub contractor to be paid
with CDBG funds for the rehabilitation of said building, nor shall they be paid for their own
labor with CDBG funds for the rehabilitation of said building.
E. Contractor's Work
Each contractor must satisfactorily complete one job through the Housing
Rehabilitation Program before receiving any additional contracts. No contractor will be allowed
to have more than five (5) jobs under construction at one time without consent of the local
government designated representative unless:
1) the anticipated date of commencement is after the scheduled, and
estimated, date of completion of current jobs; or
2) the contractor has demonstrated, through past performance his/her ability
to satisfactorily complete multiple contracts in a timely manner thereby causing no impact on
project and program completions.
This rule may be waived by the City Council 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.
F. Contracting
The Housing Rehabilitation Specialist presents each case to the City Council before the
DPL and contract is signed. The DPL amount, contract amount, contractor and owner eligibility
are all approved by the designated representative of the City.
The rehabilitation contract is executed between the homeowner and the contractor when
the rehabilitation DPL is closed, with the three (3) day rescission period running simultaneously
for both legal agreements. Rehabilitation Agreements (for DPL's) are executed by the designated
representative authorized to act on behalf of the City Council.
The DPL and the Notice of Commencement are recorded immediately. The program pays
for recording of the Agreement. The filing of the Notice of Commencement shall be the
responsibility of the Contractor.
The Notice to Proceed is issued to the contractor as soon as possible after the rescission
period elapses. When temporary relocation of the occupants is required, the Notice to Proceed
will be delayed until the house is vacated. The contract time of performance (generally 45 60
days) begins with issuance of the Notice to Proceed.
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D. Change Orders
Any additions to, deletions from, or changes in the rehabilitation contract work, time, or
price must be approved in a written change order before the additional work is started. The
change order is executed by the owner and contractor and is approved by the Housing
Rehabilitation Specialist and the designated City representative. Change orders may 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 found after construction begins as
documented by the local building official. A bonafide code violation report must accompany the
change order request. Other changes will be at the owner's expense.
Any change orders which cumulatively exceed One Thousand Dollars ($1,000.00) above
the original contract amount shall only be paid with CDBG funds if the change orders are to
correct documented code violations based on a bonafide code violation report.
Change orders up to Three Thousand Five Hundred Dollars ($3,500.00) may be
authorized by the CDBG program administrator and City Administrator. All change orders
exceeding this amount shall require the authorization of the City Council.
E. Paint
The Homeowner shall select the color of paint to be used. Once selected by the
Homeowner, the paint color shall not be changed by the City, the Contractor or the Homeowner.
The use of lead based paint shall be prohibited in dwelling units rehabilitated with Community
Development Block Grant funds.
If addressing a pre -1978 home with Community Development Block Grant funds, the
City shall procure the services of a Lead Paint Inspection firm to conduct the required Lead Paint
tests (i.e., initial inspection, the Risk Assessment, and the clearance test.) The homeowner shall
be notified of the hazards of lead -based paint poisoning:
1) Advised that the property may contain lead -based paint;
2) Advised of the hazards of lead -based paint;
3) Advised of the symptoms and treatment of lead poisoning;
4) Advised of the precautions to be taken to avoid lead -based paint poisoning
(including maintenance and removal techniques for eliminating such hazards);
5) Advised of the need for and availability of blood lead level screening for children
under seven (7) years of age; and
6) Advised that if lead -based paint is found on the property, appropriate _removal
and/or abatement procedures may be undertaken in accordance with Florida
Department of Community Affairs Technical Memo: HCD: CDBG- 93 -12, dated
November 30, 1993.
E. Initiation of Construction
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Resolution No. 10 -08 Page 21 of 29
When the contract has been successfully awarded, the participant may be required
to temporarily relocate out of their residence. The participant will have their belongings moved
and stored in accordance with the Temporary Relocation Guidelines of the Antidisplacement and
Relocation Assistance Plan or City of Okeechobee FY 2009/2010 Housing Assistance Plan
Guidelines, whichever is greater. If the housing unit is going to be demolished and replaced,
temporary storage in an amount not to exceed $200.00 per month may be paid for the duration of
the construction period.
After the participant has vacated the dwelling unit and the Notice to Proceed has
been issued, the house is then rehabilitated in accordance with the rehabilitation standard
specifications, the standard building code, and the work write -up.
F. Inspections
Periodic inspections of the rehabilitation construction are performed by City of
Okeechobee and the Housing Rehabilitation Specialist throughout the contract period. These
inspections are conducted to assure compliance with the contract standards for workmanship and
materials, to detect any unauthorized deviations and to identify necessary changes to the contract
work in its early stages.
Inspection and approval of completed work must be conducted by the Housing
Rehabilitation Specialist prior to the contractor's receiving partial or final payment. The owner's
acceptance of the work is also required before payment is received.
G. Payment
Payments shall be made in accordance with the terms outlined in the contract between the
homeowner and the contractor.
The Demo/Replacement Payment Schedule will be explained in the construction contract
between the homeowner and contractor.
Approval of any payment requires:
1. a determination by the Housing Rehabilitation Specialist and the designated
representative that the claimed percentage of completion of the work has been
satisfactorily completed. Payment will be issued for the amount claimed
depending on the physical progress as long as the contract funds remaining are
sufficient to complete the work in the event of default by the contractor;
2. approval of the work by the owner; and
3. an affidavit from the contractor stating that either:
(a) there are no claims for unpaid goods and/or services connected with the job
and all laborers, suppliers and subcontractors have received just compensation for
their goods and services up to the date of the request (as evidenced by full or
partial waiver of lien from subcontractors); or
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Resolution No. 10 -08 Page 22 of 29
and:
(b) a list of all unpaid parties and the amounts owed to each has been submitted
with the request.
The final payment approval requires inspection by the Housing Rehabilitation Specialist
1. acceptance of all work by the property owner, the Housing Rehabilitation
Specialist and designated representative;
2. statement by contractor that all work, including change orders, has been
completed;
2. submission of all manufacturers' and other warranties (i.e., appliances, roofing,
extermination, contractor's warranty coveting the entire job for one 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;
4. a certificate of occupancy or final approval from the Building Inspector to show
compliance of the rehabilitation work with the locally adopted building (and other
applicable) code requirements;
5. completion of all punch list items;
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; and
7. all of the above documents shall be placed in the appropriate housing case file at
the City.
If the owner refuses to authorize payment due to a dispute with the contractor, the
Program Administrator may recommend disbursement without the owner's approval if the claim
is shown to be without merit or inconsistent with policies and the goal of the program. Such
disbursement shall be issued only after the Program Administrator has reviewed the facts and
circumstances involved in the dispute and has determined that the owner's refusal to issue
payment is without just cause. A record of all pertinent information may be presented to the City
Council for their review in accordance with the Complaint Procedures. The City Council has the
authority to uphold, rescind or reverse a previous determination. An appeal of the local
determination/decision made by the City Council should be filed with the Department of
Community Affairs, if applicable. Sufficient documentation to this effect shall be placed in the
case file.
Upon completion of the project, the local building inspector will issue a Certificate of
Occupancy. The participant is required to move back into the dwelling unit at this point.
H. Warranty of Work by Contractor
All rehabilitation work performed by the Contractor shall be covered by a one (1) year
warranty. Such warranty shall confer upon the Homeowner, for a period of one (1) year, the
right to require the Contractor to correct significant defects and inadequacies in the work
performed under the construction contract.
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I. Disputes and Contract Termination
Disputes, the owner's right to stop work, and termination of the contract by the owner or
contractor shall be as authorized in the Contract for Rehabilitation.
J. Follow -Up
After completion of the contract, it is the owner's responsibility to notify the contractor in
writing of any defect in the work or material. The owner is also requested to notify the Housing
Rehabilitation Specialist or the Program Administrator of any complaints to the contractor so
assistance in follow -up can be provided. If the contractor does not respond to the owner's written
complaint within a reasonable time frame and in a satisfactory manner, the Administrator will
verify the complaint. If the Program Administrator judges the complaint to be valid, he /she will
send written request for warranty service to the contractor and a copy to the designated
representative. The contractor will then take action as monitored by the owner and the Housing
Rehabilitation Specialist. Upon receiving notice from the owner that the complaint has been
satisfied, the Housing Rehabilitation Specialist will inspect the work and make such note in the
case file. Failure to resolve complaints shall be justification for removing a contractor from
participation with the program.
XII. CLEARANCE /PERMANENT RELOCATION /DEMOLITION RELOCATION
A. General
Permanent Relocation and/or Demolition Relocation are synonymous terms used in the
rehabilitation program when a home is unsound and not suitable for rehabilitation based on the
structural integrity criteria. Homeowner eligibility requirements are the same as for
rehabilitation. Further policies are included in the local Anti- displacement and Relocation Policy.
B. Clearance
Requirements are identified by the Housing Rehabilitation Specialist and are included in
the replacement unit bid package. In this way, the same contractor is responsible for site 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.
C. Permanent Relocation/Demolition Relocation
This activity involves replacement of an eligible owner occupied unit that is beyond
economic repair. The Program Administrator will decide with the Housing Rehabilitation
Specialist on a case -by -case basis about the feasibility of demolishing an existing housing unit
and the construction of a new slab "site built" replacement unit. Decision items will include
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Resolution No. 10 -08 Page 24 of 29
budget, zoning, replacement requirements, cost estimates, and a number of other items that may
vary case -by -case.
Once the decision is made, the Housing Rehabilitation Specialist prepares bid
specifications based on household size and composition of those who live in the home. Bidding
contracting and inspections then proceed as in the rehabilitation process.
Cost feasibility limits are based on number of bedrooms to be provided for site built
homes. These limits that may not be exceeded without approval from the City Council are:
(a) four or more bedrooms $80,000
(b) three bedrooms $78,500
(c) two bedrooms $70,500
Necessary site improvements, including water supply, sewage disposal, and clearance,
will also be provided along with the actual dwelling replacement.
Budgetary and scoring constraints, as well as priorities for assisting other households,
may dictate that some homeowners will be offered less than the maximum amounts shown
hereto, even if their demolition and replacement housing costs are above the offered amount. In
these cases, homeowners must provide non -CDBG funds from other sources, or they may
decline the offer and withdraw from the program. If the offer is declined, no CDBG funded
demolition will occur.
XIII. INSURANCE
In designated flood plain areas where the existing housing unit is being demolished and a
new housing unit is being constructed, the floor elevation of the new unit must be located above
the existing one hundred (100) year flood plain elevation.
The one hundred (100) year flood plain elevation benchmark must have been established
by a registered land surveyor. The owner shall be required to obtain flood insurance on the
residence as part of the CDBG Program requirements. The cost of the flood insurance shall be
an eligible CDBG grant expense.
XIV. RELOCATION /DISPLACEMENT
The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970
does not apply to displacement under the City of Okeechobee Community Development
Program; since City of Okeechobee does not acquire the vacated (demolished or rehabilitated)
property and residents participate voluntarily. Therefore, temporary relocation services
consisting of storage and temporary rental will be provided in accordance with guidelines
outlined the City of Okeechobee Anti- Displacement and Relocation Policy and CDBG Housing
Assistance Plan.
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Household/property owners previously approved for proposed housing assistance may
voluntarily withdraw their application for assistance, which must be confirmed in writing. If the
Administrator determines the applicant to be ineligible for assistance, the Administrator shall
send written notification to the applicant, stating that the application has been rejected and the
reason for the rejection.
XV. APPEALS /COMPLAINTS
The Housing Rehabilitation Specialist, the designated representative and the Program
Administrator are authorized by the City Council to make all determinations of eligibility for
assistance and level of assistance, scheduling of rehabilitation, demolition and relocation, and
contract management. Citizens and/or contractors should issue complaints to the Housing
Rehabilitation Specialist or the Program Administrator. For a complaint to be considered valid, it
must be issued in writing within a period of 15 days of its occurrence. Responses also should be
issued in writing.
If the complainant is not satisfied with the Program Administrator's response, the issue
must be presented in writing to the City of Okeechobee City Council in accordance with the
Complaint Procedures. The City Council will review the grievance and make a decision based
upon program regulation, local policies, and availability of funds. Further appeals, if necessary,
must be addressed to the Florida Department of Community Affairs.
XVI. PROGRAM INCOME
No program income is planned to result from this program. Deferred Payment Loans will
be monitored by the Housing Rehabilitation Specialist during the CDBG period of agreement.
After the expiration of the agreement between City of Okeechobee and the State, the monitoring
will be performed by the designated representative.
If repayment of a DPL or program income is received during the CDBG agreement
period, it will be used for additional rehabilitation as authorized by the Department of
Community Affairs. Program income or DPL payment received subsequent to closeout will be
returned to the Department of Community Affairs unless the state's program income regulations
are changed.
XVII. REPORTS, RECORDS AND DATA
The City shall retain and maintain accurate files and records on each applicant including
all documentation pertinent to the applicant. Such files shall be open for inspection and retained
for a period of not less than six (6) years following the satisfaction of the applicable DPL.
The Contractor shall submit to the City such schedule of quantities and costs, progress
schedules, reports, estimates, records and other data as the City may request concerning work
performed or to be performed under this Program.
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The City shall provide to the Department the following information as part of the
closeout package:
a. address of housing unit rehabilitated, date completed, and amount of CDBG
funds expended on housing unit;
b. information regarding head of household,
of household;
c. information regarding income status (i
moderate income);
number of occupants of each household, categorized by sex; and
racial demographics of each household.
d.
e.
The Contractor shall be required to maintain his/her reports, records and data for the
rehabilitation work for a period of six (6) years, from the date of the final approval of
rehabilitation work completed under this Program.
XVIII. PROPERTY ACQUISITION POLICY
must:
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Resolution No. 10 -08 Page 27 of 29
handicap status, and elderly status
.e., very low income or low -to-
A. Voluntary
City of Okeechobee may purchase property with Community Development Block Grant
funds for use in the Community Development Program. While most property acquisition must
follow the procedures outlined in the Uniform Relocation and Real Property Acquisition Act,
residential property to be used for relocation purposes shall be purchased on a voluntary basis.
The City shall determine the property features needed and the budget available for the
purchase defined in the contract agreement. A request for proposals will then be published in a
local newspaper. The request will state the specifications and budget, and indicate that the
purchase is voluntary.
No displacement of renters may occur as a result of the program. Owners will not receive
any relocation assistance so owner- occupants must waive the Uniform Act Rights.
A voluntary acquisition occurs when real property is acquired from an owner who has
submitted a proposal to the recipient for purchase of their property in response to a public
invitation or solicitation of offers. The City Council is committed to this mode of acquisition to
the maximum practicable extent.
Voluntary acquisition shall be permitted only if the property being acquired is not site
specific and at least two properties in the community meet the criteria established by the local
government for usage, location and/or interest to be acquired. The City Council prior to
publication of a public notice or attendance of any local government representative at a property
auction must approve all voluntary acquisitions in principle.
A public notice must be published inviting offers from property owners. This notice
1. accurately describe the type, size and approximate location of the property it
wishes to acquire;
2. describe the purpose of the purchase;
3. specify all terms and conditions of sale, including maximum price;
4. indicate whether or not an owner- occupant must waive relocation benefits as a
condition of sale;
5. announce a time and place for offers to be accepted; and
6. announce that local powers of condemnation shall not be invoked to acquire any
property offered for which a mutually agreed to sale price cannot be reached.
Property may also be acquired at auction. The Uniform Relocation Act does not apply to
voluntary acquisitions.
In each voluntary acquisition, a public solicitation shall occur. Offers shall be sealed and
opened at the same time, in the same place, by a responsible official. Records of offers shall be
kept. Appraisals are not required for purchases less than $2,500 if a mutually agreed to sales
price can be reached. Clear title must be present in every transaction. The City Council 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 City Council that can reject or accept any and all offers. Written records shall
be maintained documenting decisions and rationale for selected courses of action.
B. Non- Voluntary Acquisition Plan
Acquisition of property (including easements and right -of -way) using federal funds shall
occur in accordance with the Uniform Relocation Act of 1970 (as amended) and with any State
and Federal regulations that may apply.
Fundamental steps that occur in each purchase may vary case by case. However, in
general terms, the following should take place: (1) source of funds and authority to acquire
confirmed, (2) property/site identified and suitable, (3) legal description/survey /preliminary title
search performed (services procured as necessary), (4) notice of intent to acquire sent owner, (5)
appraisal and review appraisal services solicited and appraiser retained, (6) appraisal received
and sent for review, (7) title companies solicited and retained after review received (title
insurance amount and necessity determined in advance), (8) offer to purchase and notice of just
compensation sent owner, (9) owner contacted by attorney or other representative and contract
formalized, (10) settlement costs calculated and closing date set, (11) closing conducted with
funds changing hands and, (12) records of proceedings retained.
The Uniform Relocation Act requires certain specific procedures such as some letters
being sent certified. The CDBG Implementation manual provides a checklist that may be utilized
in following each transaction to successful conclusion. In no case will CDBG funds be utilized
which would create involuntary displacement.
C. Timing/Planning
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Resolution No. 10 -08 Page 28 of 29
Properties necessary for easements or acquisition shall be identified as early in the
planning stage as is practicable. Every attempt shall be made to effect a design that 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 City Council 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 need for easements and/or acquisition is not identified until after the
project is underway, procedures shall be expedited to the maximum practicable extent and
utilization of funds, the value of which would be unrecoverable if the transaction did not occur,
minimized.
XIX. AMENDMENTS
The City Council shall have the right to change, modify or revoke all or any part of these
guidelines by a majority vote.
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