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HomeMy WebLinkAbout19-067RESOLUTION NO. 19-067 A RESOLUTION AMENDING THE ST. LUCIE COUNTY HOUSING ASSISTANCE PLAN FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM WHEREAS, on October 2, 2012, St. Lucie County adopted the St. Lucie County Community Development Block Grant (CDBG) Local Housing Assistance Plan; and, WHEREAS, it is the intent of the County, to the greatest extent feasible, to provide as much flexibility as possible in the administration of the CDBG Housing Program so that improvements to the housing standards for the very low and low -to -moderate income residents of the County may be achieved through the use of CDBG and other County Housing programs; and, WHEREAS, the County has determined that certain amendments to the St. Lucie County CDBG Local Housing Assistance Plan will better serve the residents of the County in meeting the goals of the CDBG Housing Program; and, WHEREAS, the County has discussed the amendments with the Florida Department of Economic Opportunity to ensure that the language changes comply with the CDBG Housing Program. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners, St. Lucie County, Florida, as follows: A. Amendment V to the St. Lucie County CDBG Local Housing Assistance Plan for the CDBG Program, a copy of which is attached hereto and incorporated herein as Exhibit "A", is hereby adopted. B. The County Administrator and/or designee is hereby directed to coordinate the implementation of said amendments. This resolution shall become effective immediately upon adoption. After motion and second, the vote on this resolution was as follows: Chair Linda Bartz AYE Vice Chair Cathy Townsend AYE Commissioner Chris Dzadovsky AYE Commissioner Sean Mitchell AYE Commissioner Frannie Hutchinson AYE 1 PASSED AND DULY ADOPTED this 16TH day of April, 2019. ATTEST: P-0 WIN&/1 BOARD OF COUNTY COMMISSIONERS ST. LUCIE COUNTY, FLORIDA BY: CHAIR APPROVED AS TO FORM AND CORRE ST. LUCIE COUNTY Community Development Block Grant (CDBG) Housing Assistance Plan (HAP) EXHIBIT Revised 02152019 A TABLE OF CONTENTS 1. INTRODUCTION 3 2. HOUSING REHABILITATION OBJECTIVES AND POLICIES 3 A. Objectives B. Rehabilitation Policies C. Identification of Units D. Approval of Ranking, and Removal of Units from the Program 3. CONFLICT OF INTEREST 5 4. HOUSING REHABILTATION FINANCING 5 A. Deferred Payment Loan (DPL) 5. SCOPE OF REHABILITATION SERVICES 6 6. QUALIFICATIONS 7 A. General B. Household Income C. Case File Requirements 7. STRUCTURAL REQUIREMENTS 8 A. General B. Cost Feasibility 8. PROCEDURES 9 A. Application and Inspection B. Bidding C. Contracting and Rehabilitation D. Inspections E. Change Orders F. Payment G. Disputes and Contract Termination H. Follow Up 9. CLEARANCE/PERMANENT RELOCATION/DEMOLITION AND RELOCATION 13 A. General B. Clearance C. Permanent Relocation D. Differences 10. CONTRACTOR LISTING 14 A. Recruiting B. Contractor Eligibility C. Disqualification 11. RELOCATION/DISPLACEMENT 16 12. APPEALS/COMPLAINTS 16 13. PROGRAM INCOME 16 14. PROPERTY ACQUISITION POLICY 17 A. Voluntary B. Non -Voluntary Plan C. Time/Planning 15. ADMINISTRATIVE CLOSEOUT 19 A. Beneficiary Date Collection TABLE OF CONTENTS 1. INTRODUCTION 3 2. HOUSING REHABILITATION OBJECTIVES AND POLICIES 3 A. Objectives B. Rehabilitation Policies C. Identification of Units D. Approval of Ranking, and Removal of Units from the Program 3. CONFLICT OF INTEREST 5 4. HOUSING REHABILTATION FINANCING 5 A. Deferred Payment Loan (DPL) 5. SCOPE OF REHABILITATION SERVICES 6 6. Vil QUALIFICATIONS A. General B. Household Income C. Case File Requirements STRUCTURAL REQUIREMENTS A. General B. Cost Feasibility 17 8 8. PROCEDURES 9 A. Application and Inspection B. Bidding C. Contracting and Rehabilitation D. Inspections E. Change Orders F. Payment G. Disputes and Contract Termination H. Follow Up 9. CLEARANCE/PERMANENT RELOCATION/DEMOLITION AND RELOCATION 13 A. General B. Clearance C. Permanent Relocation D. Differences 10. CONTRACTOR LISTING A. Recruiting B. Contractor Eligibility C. Disqualification 11. RELOCATION/DISPLACEMENT 12. APPEALS/COMPLAINTS 14 6 13. PROGRAM INCOME 16 14. PROPERTY ACQUISITION POLICY 17 A. Voluntary B. Non -Voluntary Plan C. Time/Planning 15. ADMINISTRATIVE CLOSEOUT 19 A. Beneficiary Date Collection 2 1. INTRODUCTION This manual is a guide for operating the housing rehabilitation related aspects of the St. Lucie County Community Development Block Grant (CDBG) Program. The responsibilities of St. Lucie County, the homeowner, and construction contractor are specifically addressed in this manual. The major focus of this manual is on housing rehabilitation, and replacement of dwellings. Relocation of households is also covered to a limited extent. The Anti -displacement Policy should be consulted if displacement or permanent relocation becomes necessary. The goal for the CDBG program is to rehabilitate substandard units located in St. Lucie County and to bring them up to a minimum acceptable living standard. This standard is the HUD Section 8 Minimum Housing Quality Standard and the Florida Building Code. This goal will be achieved through the use of CDBG funds to contract for the required rehabilitation construction. The rehabilitation units to be assisted shall be owner -occupied. 2. HOUSING REHABILITATION OBJECTIVES AND POLICIES A. Objectives The objectives of the St. Lucie County Housing Rehabilitation Program are: 1. To encourage the revitalization of very low to 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 low -to -moderate income neighborhoods to improve their community. 4. To preserve existing housing stock and to replace substandard housing. 5. To enable 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 to low -to -moderate income families through weatherization aspects of rehabilitation. 7. To improve the property tax base in 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 It is the policy of the St. Lucie County Rehabilitation Program to: 1. Assure that the program is administered in strict conformance with the community development and rehabilitation rules and all applicable local, state and federal requirements (including equal opportunity, conflict of interest, etc.) 2. Treat all participating property owners, residents, and contractors fairly, with sensitivity and respect for their needs, and in accordance with program rules. 3. Provide all program participants any reasonable assistance necessary to carry out the objectives of the program, bearing in mind: a) That property owners hold the primary responsibility for maintaining their property and personal finances; b) That contractors are primarily responsible for the quality of their work and their obligations to suppliers, creditors, subcontractors, and employees; and c) That any assistance provided must be authorized at the proper level. Assure that no member of the Congress of the United States, the Citizen Advisory Task Force, or the St. Lucie County Board of County Commissioners shall share in proceeds or benefits of CDBG funded rehabilitation work. Allow some flexibility in administering the program in order to meet the program's goals and objectives of rehabilitating each addressed dwelling to attain HUD Section 8 Minimum Housing Quality Standards and the Florida Building Code. The St. Lucie County Board of County Commissioners may waive program rules only when the result will be consistent with established goals and objectives and applicable federal, state, or local regulations. Housing rehabilitation will be the first priority, with housing replacement units being addressed when program funds are available. St. Lucie County will not convert LMI housing to non-LMI housing. C. Identification of Units Housing Rehabilitation will take place only on units approved by St. Lucie County and in accordance with grant requirements established by the State of Florida. Alternate units may be provided to replace any primary units that may become ineligible. St. Lucie County will solicit applications by advertising in publicly circulated publications and on its website. St. Lucie County will review applications received using the following selection criteria: 1. A former recipient cannot be assisted for 5 years and, in any event, will not be served again until all other eligible recipients have received assistance. 2. Number of persons in the family and the family income. 3. 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. 4. Location of the residence with reference to defined areas, i.e., floodplain, zoning, incompatible use, etc. 5. Compatibility (consistency) of the proposed residence rehabilitation with the local comprehensive plan and/or land development regulations. 6. Recipient current on payments to the local government and mortgage/lien holders. 7. 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. 8. Recipient must have clear title to the property. 9. 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, St. Lucie 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. M 11. This program will not assist in the rehabilitation or replacement of rental housing structures. D. Approval of Ranking, and Removal of Units from the Program Housing staff shall review and rank the applications based on the criteria attached as Appendix A. The application process will have a noticed cutoff date for the receipt of applications. Applications received after that date shall be considered on a first come, first served basis after the primary list of applicants has been considered. Housing staff may remove a housing unit from the program for a change in household income, approved selection criteria, or for not complying with the minimum qualification procedures. If it is determined that it is necessary to remove an applicant from the program, a certified letter will be sent to the applicant stating the reasons for the removal. The applicant will have the right to appeal the decision as identified in the Citizen Participation Plan. 3. CONFLICT OF INTEREST Although addressed in other places in this Policy, adherence to rules and regulations on this matter is mandatory. All applicants that may have a business or familial relationship with a member of the St. Lucie County Board of County Commissioners (BOCC), Citizen Advisory Task Force (CATF) Committee, Community Services Department, or participating construction contractors must fully disclose this relationship on the Application and definitely before a construction contract is executed. Before an applicant with a potential or real conflict is given final approval for participation, St. Lucie County must notify the Department of Economic Opportunity (DEO) in writing. Prior to any rehabilitation, St. Lucie County must receive written notification of DEO's approval of the application, in accordance with 24 C.F.R. Section 570.489. If this process is not followed the local government and/or the applicant may be liable for returning the funds to the program. 4. 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. 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 ten years of the date of the DPL, or fails to maintain reasonable required standards of care and maintenance. The County will agree to subordinate the loan in cases where the homeowner wishes to refinance the first loan for more favorable terms and the refinance does not result in cash received by the homeowner. During the ten-year period, the principal is "forgiven" or subtracted from the principal balance in equal yearly amounts, so that at the end of the 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 ten years. In the event that the sole owner dies or both/all owners die within the ten-year loan period, repayment of the loan will not be required. 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 St. Lucie County BOCC may, at their discretion, allow repayment of the DPL over a term not to exceed ten (10) years, at a yield of not more than six percent (6%) interest per annum. Homeowners whose household incomes do not exceed the HUD Section 81ow-to-moderate income limit will receive a Deferred Payment Loan for 100% of the cost of rehabilitation paid from CDBG funds. The maximum DPL for an owner -occupied single family dwelling is $100,000 unless approved by the St. Lucie BOCC. If rehabilitation costs require more than $100,000 and the owner is unable to finance the additional cost or the St. Lucie BOCC does not approve an increase for the maximum dollar amount allowable then the dwelling unit may be disqualified unless alternative funding is available. Grant application scoring indicates an average rehabilitation amount that is to be attained. Very high costs frequently adversely impact other units planned for rehabilitation. Therefore, the ability to maintain the necessary average must enter into the decision process. As a general policy, a contingency amount of about 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. 5. SCOPE OF REHABILITATION ASSISTANCE CDBG financing of housing rehabilitation is available for the following purposes: 1. Correcting local housing code (Florida Building Code) and Section 8 standard violations; 2. Providing cost effective energy conservation features; 3. Provide reasonable repairs and modifications to make the dwelling accessible to handicapped and elderly occupants as necessary and technically feasible; and 4. correcting health and/or safety violations that may be present, including replacement of dilapidated or malfunctioning stoves or refrigerators and interim controls or abatement of lead - based paint hazards; New construction (adding a room or closing in a carport, etc.) is eligible for rehabilitation financing only to eliminate over -crowding or to provide bathroom or laundry hook ups. General property improvements are eligible for program funds when necessary to obtain an accurate level of utility, to decrease high maintenance costs, or the elimination of blight. Examples of eligible general property improvements include installation of cabinets and linen closets, functional changes in room layout, replacement of unapproved or damaged floor covering, and enclosure of a porch for use as a bathroom where the dwelling does not have adequate interior space. Some general property improvements may be provided at the owner's expense. 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 0 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 Housing staff. All housing rehabilitation and new construction will incorporate "green" standards including, but not limited to: Any appliances replaced or installed shall be Energy Star; Any door and/or window replaced or installed shall be Energy Star; Any lighting fixture replaced or installed shall be Energy Star. Weatherization shall be incorporated into all homes rehabilitated, including but not limited to weatherization of the attic, floor insulation, if appropriate, and sealing of all exterior walls. New construction is presumed to meet the minimum insulation and sealing requirements. Any replaced or new HVAC unit shall have a SEER rating of at least 16. 6. QUALIFICATIONS A. General In order for a homeowner to be eligible for rehabilitation assistance, the following criteria must be met: 1. Total Household income must not exceed the low -to -moderate limits set for the HUD Section 8 program at the time assistance is provided. 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 property, or other legal satisfactorily documented ownership is considered satisfactory for program participation. Providing proof of title is an owner responsibility and expense. 3. 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. 4. The property must be fully insured for flood insurance if the home is in the 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 rehabilitation funds must be elevated to at least 1' above base flood elevation (or to local code) whichever is greater. 5. All applicants that may have a business or familial relationship with a member of the St. Lucie County BOCC, the CATF, Community Services Department, 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. 6. If a boundary survey is required, the owner is responsible for providing necessary proof or documentation at the owner's expense. 7. Residents and owners of rental property are not eligible to participate in the program. 7 B. Household Income The following rules are applicable in determining household income: 1. The gross income of all household members occupying the dwelling is included in calculating household income. However, wages earned by dependent minor children (under 18) are not included in total. 2. Rent or other household support contributed by non -household occupants of a dwelling is included in household income. 3. The owner' s assets, with the exception of the home in which he/she resides and personal property such as an automobile, will be considered in determining eligibility. The actual annual income from the asset will be calculated as part of the total household income. Inclusion of such assets, if any, will be in strict accordance with 24 CFR 813.106 and any current modification thereof. C. Case File Requirements Each case file will document the completion of construction by containing the following information. A statement from the contractor that all items on the initial work write-up as modified through change orders have been completed; 2. An acknowledgment that the housing unit meets the applicable local code and Section 8 Housing Quality Standards, signed and dated by the local building inspector or the local government's housing rehabilitation specialist; 3. A signed statement by the housing unit owner, or his or her representative, that the work has been completed based on the work write-up and change orders. Should all requirements be fulfilled and the homeowner or their representative refuse to acknowledge completion of the work, the housing unit case file shall be documented with a statement detailing the stated reason for said refusal; 4. This documentation shall be completed prior to the submission of the administrative closeout package and shall accompany the administrative closeout package when submitted to the Department. 7. STRUCTURAL REQUIREMENTS A. General In addition to owner eligibility requirements for participation in the Housing Rehabilitation Program, the dwelling must be: 1. Below Section 8 Minimum Housing Quality Standards; and 2. Feasible for rehabilitation. In order for a house to be considered feasible for rehabilitation, proposed construction must: E a) Correct all violations of the local housing code and Section 8 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 $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) Not exceed the program costs noted in this plan; e) Be made reasonably accessible to handicapped/elderly occupants, when the unit is occupied by such; and f) 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. B. 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. These limits are above the allowable CDBG financing limits and assume requirements for owner contributions or leveraging. The limits may be exceeded for rehabilitation costs when alternative funds are available for leveraging but must be specifically approved by the St. Lucie County BOCC as exceeding $100,000 per single family detached house 8. PROCEDURES A. Application and Inspection Each property owner who applies for rehabilitation assistance is initially screened to determine whether he/she is eligible for a 100% Deferred Payment Loan. A preliminary inspection is then conducted to determine feasibility of rehabilitation. If either the owner or the structure does not meet eligibility requirements for program participation, Housing staff 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 Housing staff and approved by the property owner. The cost estimate for the job is considered confidential information until bid opening. If special financing arrangements (such as the owner covering excessive costs or general property improvements) are required or anticipated, arrangements must be made prior to bidding to prevent G7 soliciting bids on a case that cannot be financed. When the case receives preliminary approvals, bids are solicited for the job. B. Bidding Bidding of potential cases is conducted by the County in accordance with St. Lucie County Purchasing Manual. 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. Request for Contractor Qualifications will be advertised in local newspapers and through the County's Purchasing Department. Selected Contractors will be utilized for all CDBG housing rehabilitation projects. All selected contractors will be notified of available projects to submit bids. Each contractor must attend a pre -bid conference held at the house to be rehabilitated. Failure to do so will result in automatic rejection of his/her bid(s) for the house(s). The County may waive this requirement. Sealed bids will be opened at a public bid opening. Housing staff will generally recommend that the contract be awarded to the lowest responsive responsible bidder. St. Lucie County reserves the right to reject any and all bids and to award in the best interest of the owner and St. Lucie County. No contractor will be allowed to have more than two (2) jobs under construction at one time without consent of the local government designated representative unless: 1) The anticipated date of commencement is after the scheduled and estimated date of completion of current jobs; or 2) The contractor has demonstrated, through past performance, his/her ability to satisfactorily complete multiple contracts in a timely manner thereby causing no impact on project and program completions. This rule may be waived by the St. Lucie County BOCC if it is determined that there is an inadequate pool of qualified bidders, if the other bids are excessive, or if other extenuating circumstances arise. C. Contracting and Rehabilitation Housing staff presents each case to the St. Lucie County designated representative before the DPL and contact are signed. The DPL amount, contract amount, contractor, and owner eligibility are all approved by the designated representative. The rehabilitation contract is executed between the homeowner and the contractor when the rehabilitation DPL is closed, with 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 St. Lucie County Board of County Commissioners. 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. 10 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 begins with issuance of the Notice to Proceed. D. Inspections Periodic inspections of the rehabilitation construction are performed by St. Lucie County 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 Housing staff and the rehabilitation Specialist prior to the contractor's receiving partial or final payment. The owner's acceptance of the work is also required before payment is received. E. Change Orders Any additions to, deletions from, or changes in the rehabilitation contract work, time, or price must be approved in a written change order before the additional work is started. The change order is executed by the owner and contractor and is approved by the Program Administrator and the designated 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 as documented by the local building official, a bonafide code violation report, or to meet Section 8 housing quality standards found after construction begins. Other changes will be at the owner's expense. F. Payment Contracts of $10,000 or less will not be paid until the contractor has completed the job. Contracts in excess of $10,000 allow a partial payment upon satisfactory completion of 20%, 20%, 20% and 20% of the work, with a retainage of 20% of the total contract amount paid upon acceptance by the Building Official, homeowner and the St. Lucie Housing Staff. This draw schedule may be adjusted at the discretion of the Housing Manager. Construction Completion Payment Percentage of Schedule Funds Paid 20% 1 20% 40% 2 20% 60% 3 20% 80% 4 20% 100% * 5 (retainage) 20% *After Certificate of Occupancy is issued and all punch list items are 100% completed. Approval of a partial payment requires: 1. A determination by Housing staff and the designated representative that the claimed percentage of completion of the work has been satisfactorily completed. Payment will be issued 11 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 (b) 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 property owner, and Housing staff; 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; and 6. An affidavit from the contractor stating that all bills have been paid and there are no claims for subcontracted jobs or materials, or any outstanding Notice to Owner. If the owner refuses to authorize payment due to a dispute with the contractor, the Program Administrator may recommend disbursement without the owner's approval if the claim is shown to be without merit or inconsistent with policies and the goal of the program. Such disbursement shall be issued only after the Program Administrator has reviewed the facts and circumstances involved in the dispute and has determined that the owner's refusal to issue payment is without just cause. An appeal of the local determination/decision made by the St. Lucie County BOCC should be filed with the Department of Economic Opportunity, as set forth in the St. Lucie County policies and procedures. Sufficient documentation to this effect shall be placed in the case file. G. Disputes and Contract Termination Disputes, the owner's right to stop work, and termination of the contract by the owner or contractor shall be as authorized in the Contract for Rehabilitation. H. Follow -Up After completion of the contract, it is the owner's responsibility to notify the contractor in writing of any defect in the work or material. The owner is also requested to notify the Housing Rehabilitation Specialist or the Program Administrator of any complaints to the contractor so assistance in follow-up can be provided. If the contractor does not respond to the owner's written complaint within a reasonable time frame and in a satisfactory manner, the Administrator will verify the complaint. If the Program Administrator judges the complaint to be valid, he/she will send written request for warranty service to the contractor and a copy to the 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 12 make such note in the case file. Failure to resolve complaints shall be justification for removing a contractor from participation with the program. 9. 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 St. Lucie County BOCC will decide with the Housing Rehabilitation Specialist 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 case -by -case. Once the decision is made, the Housing Rehabilitation Specialist prepares bid specifications based on owner input from review of available plans from the contractors. Bidding contracting and inspections then proceed as in the rehabilitation process. D. Differences 1. 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 federal three-day rule is not violated. 3. 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 St. Lucie County Board of County Commissioners are: (a) Four or more bedrooms - $155,000 (b) Three bedrooms - $145,000 (c) Two bedrooms - $135,000 13 In the case of replacement of existing 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. 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. 10. CONTRACTOR LISTING The Housing Rehabilitation Program will establish and maintain a current listing of eligible contractors for bidding on all phases of the program. Only those contractors who are so listed will be considered for work on this program. Establishment of this list will include maximum effort to utilize local and minority contractors. A. Recruiting Contractors residing or maintaining offices in the local area will be recruited through public notice to all such contractors, as part of the local government's compliance with Federal Section 3 requirements. This special effort will be based upon the list of contractors licensed in 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. 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 St. Lucie County will be used to determine eligibility of the contractors. B. Contractor Eligibility In order to participate in the Housing Rehabilitation Program, a contractor must be certified as eligible by the Administrator of Housing Rehabilitation. Basic contractor qualifications include: 14 1. 2. 3. Currently licensed by the State of Florida Department of Business and Professional Regulation. A satisfactory record regarding complaints filed against the contractor at the state, federal or local level; Insurance meeting Type "A" requirements as established by the St. Lucie County Risk Management division including: 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,OOOcombinedsingle limit per occurrence. Copies of certificates shall be provided to the County. The Contractor shall provide the County 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; and (b) References from three (3) subcontractors who have subcontracted with the contractor; and (c) The ability to finance rehabilitation contract work so all bills are paid before requesting final payment; 4. Satisfactory references from at least three (3) parties for whom the contractor has done construction; 5. Absence from any list of debarred contractors issued by the Federal or State DOL, HUD or DEO. The Housing Rehabilitation Specialist will assure that current and past performance of the contractor are satisfactory based upon readily available information and reserves the right to check any reliable source in establishing such determination. The Housing Rehabilitation Specialist will explain the contractor's obligations under Federal Equal Opportunity regulations and other contractual obligations at the pre -bid conference. Program procedures, such as bidding and payment, are also explained to the contractor. C. Disqualification Contractors may be prohibited or removed from program participation for: 1. Poor workmanship or use of inferior materials; 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 and by falsely submitting Lien waivers for to unpaid parties. 5. Disregarding contractual obligations or program procedures; 6. Loss of license(s), insurance or bonding; 15 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 DEO; 13. Other just cause that would expose the Program or owner to unacceptable risk; 14. Failure to respond to consecutive requests for bids; or at the contractor's request. 11. RELOCATION/DISPLACEMENT The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 does not apply to displacement under the St. Lucie County Community Development Program since St. Lucie County does not acquire the vacated (demolished or rehabilitated) property and residents participate voluntarily. Therefore, relocation services will be provided in the St. Lucie County Anti -Displacement and Relocation Policy which covers specific situations in great detail. Household/property owners previously approved for proposed housing assistance may voluntarily withdraw their application for assistance, which must be confirmed in writing. If the Administrator determines the applicant to be ineligible for assistance, the Administrator shall send written notification to the applicant, stating that the application has been rejected and the reason. for the rejection. 12. APPEALS/COMPLAINTS The Housing Rehabilitation Specialist, the designated representative and the Program Administrator are authorized by St. Lucie County to make all determinations of eligibility for assistance and level of assistance, scheduling of rehabilitation, demolition and relocation, and contract management. Citizens and/or contractors should issue complaints to the Housing Rehabilitation Specialist or the Program Administrator. For a complaint to be considered valid, it must be issued in writing within a period of 45 days of its occurrence. Responses also should be issued in writing. St. Lucie County shall notify DEO upon receipt of the original complaint. If the complainant is not satisfied with the Program Administrator's response, the issue must be presented in writing to the County Manager or his designee in accordance with the Complaint Procedures set forth in St. Lucie County's CDBG Complaint and Grievance Procedures. If the complaint cannot be resolved by the County Manager or his designee, he or his designee will notify the Chair of the Community Advisory Task Force who will make a recommendation to the County Manager's office within 10 days. Any appeals will made according to the St. Lucie County CDBG Complaint and Grievance Procedures. Further appeals, if necessary, must be addressed to the Florida Department of Economic Opportunity. 13. 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 St. Lucie County and the State, the monitoring will be performed by the designated representative. 16 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 Economic Opportunity. Program income or DPL payment received subsequent to closeout will be returned to the Department of Economic Opportunity unless the state's program income regulations are changed. 14. PROPERTY ACQUISITION POLICY A. Voluntary St. Lucie County may purchase property with Community Development Block Grant funds for use in the Community Development Program. While most property acquisition must follow the procedures outlined in the Uniform Relocation and Real Property Acquisition Act, residential property to be used for relocation purposes shall be purchased on a voluntary basis. The County shall determine the property features needed and the budget available for the purchase defined in the contract agreement. A request for proposals will then be published in a 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 St. Lucie County BOCC 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 St. Lucie County BOCC, prior to publication of a public notice or attendance of any local government representative at a property auction, must approve all voluntary acquisitions in principle. A public notice must be published inviting offers from property owners. This notice must: l . 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 St. Lucie County BOCC must decide at the time of approving 17 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 St. Lucie County BOCC which 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. See St. Lucie County separate policy on this subject. C. Timing/Planning Properties necessary for easements or acquisition shall be identified as early in the planning stage as is practicable. Every attempt shall be made to effect a design that 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 startup. The St. Lucie County BOCC 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. I3 15. ADMINISTRATIVE CLOSEOUT A. Beneficiary Data Collection The following data will be provided by housing unit and summarized by activity as part of the administrative closeout for each activity providing direct benefit (i.e., housing rehabilitation, temporary relocation, hookup, etc.): • Address of each housing unit rehabilitated with CDBG funds, the date the construction was completed on the housing unit, and the amount of CDBG funds spent on that housing unit; • Whether the household includes handicapped persons or family members; • The LMI, LI, or VLI status of the household; • The gender of the head of household; and • The racial demographics of the head of household by number (White, African America, Asian, American Indian or Alaskan Native, Native Hawaiian/Pacific Islander, American Indian/Alaskan Native and African American, Asian and White, African America/Alaskan Native and White, African American and White, and Other Multi -Racial.) 19 APPENDIX A Applicants will be ranked giving first priority to households qualifying as Special Needs households. These applicants will further be ranked with priority given to very -low income, then low, then moderate. After serving enough Special Needs households to meet set -asides, all applicants deemed eligible will be considered equally with priority given to very -low, then low, then moderate income groups. Ranking Priority: 1. Special Needs Households a. Very low b. Low C. Moderate 2. After Special Needs Set -asides a. Very Low b. Low C. Moderate 20