1994-09 Community Development• RESOLUTION 94-9
CITY OF OKEECHOBEE
COMMUNITY DEVELOPMENT PLAN
The City of Okeechobee is located in Okeechobee County. Based on
the 1990 Census, the City's population is 4,943 of which 1,098 or
22.21%, are minority.
LONG
TERM OBJECTIVES:
1.
To improve the physical environment
of the community to make it
more functional, safe and efficient
and to preserve the integrity
of existing neighborhoods.
2.
To promote the public interest.
3.
To inject long range considerations
into the determination of
short range decisions.
4.
To bring professional and technical
knowledge to bear on issues
concerning social, economical, or physical development.
5.
To facilitate effective cooperation
and coordination between all
interested parties, both public and
private, involved with
community development.
6.
To identify all available resources
for major opportunities to
improve or enhance development in the community, to improve health
and/or safety, and to improve the quality of life for all
residents of the Community.
SHORT TERM OBJECTIVES:
1. To explore all possible resources for the purpose of improving the
way of life for all citizens, especially those who live on fixed
incomes, occupy deteriorated housing, or reside in declining
neighborhoods.
2. To apply for community development block grant funds to
rehabilitate substandard hoousing, and to revitalize the downtown
area through rehabilitation of buildings and beautification
efforts.
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HOUSING AND COMMUNITY DEVELOPMENT PROGRAM
GUIDELINES
FOR THE CITY OF OKEECHOBEE
C.D.B.G.
GENERAL INFORMATION FOR PARTICIPANTS
This package is to advise potential participants of the
guidelines by which the City of Okeechobee will operate its
Community Development Block grant (CDBG) program. These
guidelines have been established to give a program overview
and procedures to ensure compliance with the requirements
established by the Florida Department of Community Affairs
(DCA) and Federal department of Housing and Urban Development
(HUD). The information contained herein is subject to change
upon action of DCA, HUD, or the City of Okeechobee.
It is illegal to discriminate on the basis of RACE, CREED,
COLOR, SEX, RELIGION, ETHNICITY, HANDICAP, AGE, NATIONAL
ORIGIN, OR FAMILY STATUS. Individuals in the City of
Okeechobee are also protected by the State's Fair Housing
Act, Sections 760.20, 760.22, 760.23, and any amendments
thereto.
The City of Okeechobee has established a Citizens Advisory
Task Force (CATF) to serve as an oversight committee. This
committee will meet as needed to ensure that the program is
operating in accordance with all Local, State, and federal
requirements.
You will be asked to give personal and financial information
about yourself and your household to a representative of the
Community Development Program in order to begin the
application process.
This information will be written down and become a part of
your file. The information you give must be accurate and
true. The Community development Office (CDO), upon advise
from the Citizen's Advisory Task Force, will use the
information to determine if you are eligible to participate
in the program.
Your home will be inspected by a representative of the
Community Development Office (CDO) to determine if it meets
program guidelines. The inspector will discuss your housing
needs and estimate the costs necessary to bring your house up
to minimum standards. Additional bedroom space can only be
provided as needed to ensure that those household members in
permanent residence do not share a bedroom with a member of
the opposite sex.
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You will be required to sign certain papers before the
construction process begins. These papers will outline the
• work to be performed on your home and give you an estimate of
the cost. Construction will cause a certain amount of
debris; however, every effort will be made by the contractor
to leave the work site in a clean and orderly fashion.
Work on the foundation and exterior of your home may cause
damage to shrubs and lawn ornaments around the house. If
possible, please have all of these items moved prior to the
time work is to begin. Although the contractor will be as
careful as possible to protect the shrubs and bushes, we
cannot be responsible for any damage.
OBJECT OF PROGRAM
A. To provide a Deferred Payment Loan (DPL) to very low
income participants in order to bring their residence up
to Section 8 Minimum Property Standards and/or the
standards set forth in the Standard Housing Code
currently adopted by the City of Okeechobee. (The DPL
is explained further in the financing section).
B. Improve the conditions of housing while maintaining
housing costs at a level affordable by lower-income
households; to provide a safe and sanitary dwelling.
C. Reverse the physical deterioration of the neighborhood
by providing a mechanism to allow for the rehabilitation
of existing housing stock in a neighborhood.
D. Eliminate slums and blight and provide a safer sanitary
environment in which to live.
FINANCING
There are two types of assistance which may be available to
eligible residents: Deferred Payment Loans and Direct'Loans.
A brief description of these are presented below. Grants
will not be utilized as a part of the CDBG Housing program.
A. Deferred Payment Loans: This type of loan will be
available to eligible, approved applicants. The DPL
loan can be used in the owner -occupied rehabilitation
program. The DPL loan will be secured by a lien on the
property. The DPL loan payments will be deferred for a
period of five years. The DPL will forgiven at the rate
of 20% per year; at the end of five years, the debt will
be forgiven. This is done to assure that the applicant
will occupy the residence and not sell or rent the
property for five years after rehabilitation.
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B. Direct Loans: CDBG funds can be used to make direct
loans to individuals to cover the cost of
rehabilitation. The loan is repaid in monthly
installments and is secured by a lien on the property.
Interest on the loan will be at a yearly rate of 3%.
The loan period will not be less than three years and
not more than ten years.
ELIGIBILITY
A. Only those properties which are located within the
jurisdictional limits of the City of Okeechobee will be
considered for participation.
B. Participants' income must be within the Section 8 income
limit guidelines as published by the State of Florida
for the area. (See attachment A for Section 8 income
limits).
C. No member of the governing body or the CATF shall be
eligible for program participation unless they are
exempt by the Department of Community Affairs. The
prohibition shall continue for one year after an
individual's relationship with City ends.
D. Priority will be given to participant in the following
order:
1. Disabled and/or handicapped
2. Participants over 62 years of age.
3. Participants with large families (five or more)
4. Participants with small families (four or less)
E. In the event that changes in circumstances occur which
are beyond the control of the governing body to cause
beneficiaries or structures to no longer be eligible,
the Citizens Advisory Task Force (CATF) may pick
alternates and recommend them to the governing body to
replace those on the direct beneficiary list in the
approved application.
ADMINISTRATIVE PROCEDURES FOR REHABILITATION
The Community Development Office (CDO) representative will
make initial contact with the resident, explain the program,
and provide a copy of the program guidelines.
The representative will take the information necessary to
begin the application process: household size, name of the
property owner, ages of residents, and income, along with
other information as may be required. The representative
will verify all information including, but not limited to,
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the following:
a)
assets/liabilities
e)
income
b)
mortgage
f)
lot size
C)
taxes
(survey)
d)
title search
g)
zoning
The Community Development Office will provide the following
information to the Citizen Advisory Task Force for its review
and recommendation. Any other information that may be
necessary will be provided.
1. Assigned case number
2. Name and address of applicant
3. Estimated cost of rehabilitation
4. Description of rehabilitation work
5. Source of household income
6. Size and description of household
7. Property title information
8. Legal description of property
9. Lot size
The CATF will verify the aforementioned and make its
recommendation to the Council. If an applicant feels that
his/her case has been rejected by the CATF for unjust
reasons, the applicant may take his/her case to the Council
for review. The Community Development Office (CDO) will
advise the Council that the client's application has been
rejected by the CATF and the reason.
Approval:
In receiving the recommendation for approval from the CATF,
the Council will receive the following information:
1. Assigned case number
2. Cost of rehabilitation
3. Size and description of household
4. Loan (DPL) or Direct Loan
5. Legal description of property
6. Lot size
7. Date the CATF committee approved application
8. Additional information requested by the Council
The Council will, after review of the information, approve or
deny the application and sign the appropriate documents.
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**REHABILITATION GUIDELINES**
EXTENT OF REHABILITATION
In order for the program to commit funds to the
rehabilitation of a unit, the following must be met:
A. Must score less than 26 on the State's unit
inspection evaluation form.
B. Health and safety - at least two of the proposed
activities must be in the categories of "needing
major repair or non -repairable."
C. The units that are eligible for rehabilitation must
have all local housing and/or Section 8 Housing
Quality Standards (HQS) violations corrected.
D. The following components may be rehabilitated,
replaced, or added as a part of the program:
1. Structural system
2. Electrical system
3. Plumbing system
4. Heating system
5. Windows
6. Insulation
7. Kitchen cabinets
8. Stove and refrigerator
9. Roofing system
10. Extra bedrooms (only if required)
SIZE OF UNITS
Owner -occupied structures: the final size of the unit will
depend upon the size and condition of the structure and the
size and make up of the household. Those members that are 18
years old but under the age of 62 will not be counted as
eligible for a bedroom unless they have been certified as
mentally or physically handicapped. Proof of disability will
be required from an appropriate doctor.
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CONDITION OF REHABILITATION ASSISTANCE
• Maximum amount - the maximum amount of funds for the
rehabilitation will be the amount required to eliminate all
code violations giving consideration to the average amount
per structure in the application. This amount must conform
with the extent of rehabilitation section and shall be
brought to the CATF for its recommendation to the Council for
final approval. However, no rehabilitation shall exceed
$17,500.
Community development funds are to be provided to or for the
benefit of the owner(s) to rehabilitate their home. Prior to
beginning work on the property, the owner(s) will be required
to sign a mortgage nd promissory note in an amount equal to
the cost of the work. This is called a Deferred Payment Loan
and shall be forgiven in five years with 20% being forgiven
each year. If the property is sold or the owner(s) dies
within that five year period, the owner(s) or the estate will
be required to repay any unforgiven portion of the note.
However, if the person(s) inheriting the property plans to
liven in the residence and is determined eligible for
participation in the program, the City will consider
continuation of the same five year period with the person(s).
Proof of Comprehensive Homeowners Insurance on the property
will be required prior to moving back into the residence.
LEVERAGING CDBG FUNDS WITH OTHER FUNDS
Where feasible the program will combine with the
following funding sources:
1. Local SHIP Funds
2. Weatherization Funds
3. Farmers Home 502 Funds
4. Owners additional funds from a bank loan.
The local government will subordinate their
lien position to enable participants to
receive a loan from a lending institution to
have additional work done on the home.
5. The Local Government goes on record
encouraging owners or a member of the owners
family to have additional work done on their
home with their equity participation.
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OPERATIONAL PROCEDURES FOR REHABILITATION PROGRAM
1. After verification of the client's eligibility, the
property will be inspected by both the Community
Development Office (CDO) estimator and the homeowner.
Upon completion of the inspection, a work write-up will
be completed.
2. Before the work is advertised for bid, the Community
Development Office (CDO) representative and the
participants will meet to review all the information to
assure proper understanding and agreement.
3. The documents are then dated and signed by the
participants.
4. All forms necessary for the client and the City to
review will be completed as required by that stage of
work.
5. The work is then advertised for bid. All bids are
placed through local papers and building organizations.
The bids will then be tabulated. The low bid, if within
an acceptable range to the Community Development Office
(CDO)'s estimate, will then go before the CATF for
review and its recommendation to the Council for
approval.
6. Should the bid be higher than the acceptable range, the
work will be re -bid.
7. The contract will be awarded to the lowest and best
bidder by the Council.
8. The successful contractor will have 72 hours from the
date of notification to give acceptance to the Community
Development Office (CDO) and produce all necessary
licenses and insurances. Should the contractor fail to
perform in accordance with the bid or be unable to
produce the necessary licenses and insurances, the
Council will, at its discretion, award the contract to
the next lowest bidder or have the work re -bid.
9. When the contract has been successfully awarded, the
client may be required to temporarily relocate.
10. The client will have their belongings moved and stored.
(See Temporary Relocation Guidelines for details.)
11. After the client has vacated the unit, the contractor
receives a Notice to Proceed (further information is
contained in the construction contract and construction
specifications) and the Notice of Commencement is filed.
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12. The house is then rehabilitated in accordance with the
rehabilitation standard specifications, the standard
• building code, and the work write-up. At each draw
request, a partial waiver, final waiver, or release of
liens is required prior to payment.
13. The Community Development Office (CDO) in cooperation
with the local building official will inspect the house
at various times during the project particularly at the
time of each draw request.
14. The Community Development Office (CDO) does not have the
authority to supersede the building inspector for the
City but may require stricter compliance in some areas.
As a rule, the most stringent requirement will prevail.
15. Upon completion of the project, the local building
inspector will issue a Certificate of Occupancy. The
contractor is required to submit to the Community
Development Office (CDO) a request for final payment
including a wavier or release of liens from all material
suppliers, subcontractors, persons, or organizations
that may supplied the job or have an investment in the
job as a result of the work performed.
16. The participant inspects the work and is requested to
sign a satisfaction statement.
In the event of any disputes between the participants and the
contractor concerning the completion of the rehabilitation
work, the Community Development Office (CDO) will work with
both parties in an attempt to negotiate a satisfactory
solution. If a solution cannot be,found, Article II of the
contract shall be invoked.
17. The participant is given notice to move back to their
residence.
18. Community Development Office (CDO) will conduct a sixty
(60) day inspection of the unit to ensure that all work
is still in good working order.
Periodic inspections will be made by the Administrator
to ensure that the terms of the contract between the
City and the participants are being maintained.
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COMPLIANT PROCEDURES
Complaints concerning the Community Development Block
grant Program shall be in writing and addressed to the
Program Administrator. The Administrator will have thirty
(30) days to respond. Additional information is available in
the Grievance Procedure for the City of Okeechobee grant
program.
LEAD BASED PAINT POISONING
If this property was constructed before 1978, there is a
possibility it contains lead-based paint. Please read the
attached information sheet concerning lead-based paint
poisoning. Should this lead-based paint "notification" not
be attached, please contact the community development office
for a copy. If you have any questions regarding the
attachment, please contact your local community development
office.
Introduced and adopted this 16yk day of
ATTEST:
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1994.
i
ames E, Kirk, Mayor