Agenda 06/24/2014 Item #16D 36/24/2014 16.D.3.
EXECUTIVE SUMMARY
Recommendation to authorize staff to advertise an Ordinance that would repeal and replace
Ordinance 94 -39, as amended, known as the Collier County Residential Rehabilitation Program, to
adopt a revised program to be known as the Collier County Owner- Occupied Rehabilitation
Program and bring back the proposed Ordinance for a Public Hearing.
OBJECTIVE: To update the Collier County Owner Occupied Rehabilitation program.
CONSIDERATIONS: The State Housing Initiatives Partnership Program (SHIP), created by the
passage of the 1992 William E. Sadowski Affordable Housing Act, receives funds from a population -
based formula. Funding is designated by a specific percentage of statewide documentary stamp tax
revenues each year. The SHIP program provides funds to local governments as an incentive to create
partnerships that produce and preserve affordable homeownership and multi - family housing. SHIP funds
may be used to fund such projects as: emergency repairs, new construction, rehabilitation, down payment
and closing cost assistance, construction, and acquisition of property for affordable housing, matching
dollars for federal housing grants and programs, and homeownership counseling.
Through an interlocal agreement with the City of Naples, the County implements the SHIP program
within the City limits and the City is considered a partner in receipt of SHIP funds.
In order to receive SHIP funds, the County must prepare a three -year Local Housing Assistance Plan
(LHAP). The purpose of the LHAP is to develop housing incentive strategies that will meet the housing
needs of the very low —, low- and moderate - income households in Collier County and the City of Naples.
The LHAP serves as a guideline for the use of all SHIP funds for the particular three -year period. An
amendment to the FY2013 -2016 LHAP to include an Owner- Occupied Rehabilitation Program (formerly
known as the Residential Rehabilitation Program) was approved by the Board at the April 8, 2014
meeting, (Agenda item 16D1).
Major changes to the existing Residential Rehabilitation Ordinance are necessary to implement an
Owner- Occupied Rehabilitation Program (OORP) as it is contemplated in the LHAP. Staff has worked
with the County Attorney's Office to develop the following proposed changes:
• Incorporate references to County and /or representative /designee should the County decide to
partner with a subrecipient to implement the program
• Coordinate regulation changes to SHIP regulations and Florida Statutes
• Clarify the application process and procedure for qualifying applicants
• Incorporate new step -by -step bidding process clarifying responsibilities and procedures
• Clarify Notice to Proceed and Notice of Commencement processes
• Include reference to the HHVS Rehabilitation Standards
• Increase funding limits per property from $15,000 to $30,000
• Incorporate payment forgiveness language
• Incorporate contractor suspension and disqualification language
• Ordinance allows further changes to amended by resolution
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The Owner - Occupied Rehabilitation Program is presented as "Exhibit A" to the proposed ordinance.
For comparison purposes, the proposed modifications are shown in strike - through underline format on the
codified ordinance made back -up to the item.
FISCAL IMPACT: The proposed actions described in this executive summary have no fiscal impact on
the General Fund. Funds required to advertise and record the amendment are available within SHIP Grant
fund 791, Project 33222.
GROWTH MANAGEMENT IMPACT: Repealing and replacing Ordinance 94 -39, as amended, allows
the County to expand the affordable housing opportunities of its citizens and furthers the goals, objectives
and policies of the Housing Element.
LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote
for approval.- JAB
RECOMMENDATION: That the Board of County Commissioners authorizes staff to advertise an
Ordinance that would repeal and replace Ordinance 94 -39, as amended, known as the Collier County
Residential Rehabilitation Program, to adopt a revised program to be known as the Collier County
Owner - Occupied Rehabilitation Program and bring back the proposed Ordinance for a public hearing.
Prepared by: Elly Soto McKuen, Housing and Grant Coordinator; Housing, Human and Veteran Services
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COLLIER COUNTY
Board of County Commissioners
Item Number: 16.16.D.16.D.3.
Item Summary: Recommendation to authorize staff to advertise an Ordinance that would
repeal and replace Ordinance 94 -39, as amended, known as the Collier County Residential
Rehabilitation Program, to adopt a revised program to be known as the Collier County Owner -
Occupied Rehabilitation Program and bring back the proposed Ordinance for a Public Hearing.
Meeting Date: 6/24/2014
Prepared By
Name: McKuenElly
Title: Grant Support Specialist, Housing, Human & Veteran
5/5/2014 10:15:10 AM
Submitted by
Title: Grant Support Specialist, Housing, Human & Veteran
Name: McKuenElly
5/5/2014 10:15:11 AM
Approved By
Name: GrantKimberley
Title: Director - Housing, Human and Veteran S, Housing, Human & Veteran Services
Date: 6/5/2014 8:32:09 PM
Name: SonntagKristi
Title: Manager - Federal /State Grants Operation, Housing, Human & Veteran Services
Date: 6/6/2014 9:17:28 AM
Name: DoriaPriscilla
Title: Grants Coordinator, Housing, Human & Veteran Services
Date: 6/6/2014 9:55:00 AM
Name: KushiEdmond
Title: Accountant, Housing, Human & Veteran Services
Date: 6/9/2014 8:22:56 AM
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Name: Bendisa Marku
Title: Supervisor - Accounting, Housing, Human & Veteran Services
Date: 6/9/2014 9:01:41 AM
Name: TownsendAmanda
Title: Director - Operations Support, Public Services Division
Date: 6/13/2014 3:12:29 PM
Name: AlonsoHailey
Title: Operations Analyst, Public Services Division
Date: 6/13/2014 3:40:28 PM
Name: BelpedioJennifer
Title: Assistant County Attorney, CAO General Services
Date: 6/13/2014 4:49:12 PM
Name: CarnellSteve
Title: Administrator - Public Services, Public Services Division
Date: 6/13/2014 5:04:31 PM
Name: RobinsonErica
Title: Accountant, Senior, Grants Management Office
Date: 6/16/2014 9:07:14 AM
Name: BelpedioJennifer
Title: Assistant County Attorney, CAO General Services
Date: 6/16/2014 12:12:00 PM
Name: KlatzkowJeff
Title: County Attorney,
Date: 6/16/2014 1:20:05 PM
Name: IsacksonMark
Title: Director -Corp Financial and Mngmt Svs, Office of Management & Budget
Date: 6/16/2014 1:59:14 PM
Name: StanleyTherese
Title: Management/Budget Analyst, Senior, Grants Management Office
Date: 6/17/2014 9:31:12 AM
Name: OchsLeo
Title: County Manager, County Managers Office
Date: 6/17/2014 11:32:31 AM
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PART I - CODE
Chapter 114 - SOCIAL SERVICES
ARTICLE IV. RESIDENTIAL REHABILITATION PROGRAM
OWNER- OCCUPIEDARTIC E IV! RESIDENT 1A1 REHABILITATION PROGRAM -IN
Program Description.
The purpose of this policy is to establish administrative procedures and program
guidelines for the SHIP Owner- Occupied Rehabilitation Program The program provides
for repairs or improvements necessary for safe or sanitary habitation correction of
substantial code violations or addition of handicapped accessible items All units
rehabilitated with the funds provided from the local housing, assistance trust fund must
b
GO111'eF County whirh is eligible for r-ehabilitation and is owned and
occupied by very _low, -and low- or moderate income persons_
Loan
family" are limited to a maximum amount as established in the applicable LHAP NOTE: Special
Exception: The Director may obtain approval of the Board of County Commissioners on a case
by case basis for subsidies above the established levels to accormnodate a special needs housing
applicant or other situationfeund in which it is detennined that the assistance is necessary and /or
Definitions.
not evident at the time of bid.the- median
Collier County, Florida, Code of Ordinances Page 1
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PART I - CODE
Chapter 114 - SOCIAL SERVICES
ARTICLE IV. RESIDENTIAL REHABILITATION PROGRAM
Definitions referenced in the Ordinance shall be the same as those definitions set forth in Rule
67- 37.002. Florida Adininistrative Code.
Income data for the Naples Metropolitan Statistical Area are supplied by the U.S. Department of
Housing and Urban Development (HUD), and apply to all of Collier County. The definition for "annual
income" is found in 24 CFR Subpart F of Part 5, .
Ser.. 444 7-2—.Administration.
ka- --This program shall be administered by the Collier County QP8F@ti9Ral SuppGrt and Housing. Human
and Veteran Senices Department (HHVS). or its representativeidesignee,9414} hereinafter
referred to as "department."
(b-) —The department shall be responsible for:
0+—Identifying potential homeowners.
a— Potential participants for the program will be identified through the following activities:
In accordance with Section 420.9075(4)(b). Florida Statutes, if the Department has
a waitlist the participants will be contacted in the order they were placed on
the waitlist. In the absence of a waitlist. 4 The department will advertise in
a news paperpc+434isat4en of general circulation and periodicals sen -ing ethic and
diverse neighborboods +n -the seWRt announcing the program and the availability of
funds for rehabilitation services.
—The department will contact local non - profit, community -based organizations in the
county through outreach activities to locate ]otentiatpeten a44y program participants.
Chapter 420..907 1 Florida Statutes, as amended from time to ti.me.i ---gip
defines community -based organization as "...a non-
profit organization that has among its purposes the provision of affordable
housing to persons who have special needs or very low- income persons, low -
income persons, or moderate - income persons within a designated area, which
Collier County, Florida, Code of Ordinances Page 2
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PART I - CODE
Chapter 114 - SOCIAL SERVICES
ARTICLE IV. RESIDENTIAL REHABILITATION PROGRAM
may include a municipality, a county, or more than one municipality or countyz;
A community housing
development organization established pursuant to 24 CFR, Part 92.2 and a
community development corporation created pursuant to F.S. Ch. 290, are
examples of community -based organizations."
�3- -The Collier County Code Enforcement Department can refer potential clients that
have been cited with violations of Collier County Housing Code Ordinance No. 89 -06,
as amended, to the department. The department will determine the individual /family
interest in participating in the program and whether the potential participant is income
eligible to participate in the program, pursuant to the requirements set forth below.
i) The homeowner(s) will be accepted on a first come first served first qualified
basis.
Detennine homeownerR --- 4pp4G&w eligibility_ -,Gr r .
,m-.—All homeownersappl+saats in this program must have fee simple ownership of the owner -
occupiedsi44� dwelling unit for which residential rehabilitation services are
requested.
4 —Where there are co- owners for a property, each co -owner is required to participate in
the application process, the income eligibility determination process which includes
household income and asset certification and third party verification, and the
secondary mortgage /lien application and closing process.
b. Accepting and processing applications for rehabilitation services:
4- -All potential homeowners must complete the program applicatione„titled
2—The application form shall be used to document the general information regarding the
potential homeowner which will include, but not be limited to, ownership
status, number of residents living in the housing unit, previous residences,
employment history, and all financial assets owned by the households.
3 —The application must be signed by all parties with an ownership interest in the
property.
4—The application for housing assistance shall be maintained as part of the permanent
program file for each homeowner making application to the Collier County Owner -
OccupiedResideati� Rehabilitation Program.
ii e. -All potential homeowners paAieip must sign the "Income
Certification."
income certification.."
iPG9P4e G9#ifiGatiep. This form is required documentation for any program
utilizing the 2 W I R monies as a funding source. Information contained herein relates
Collier County, Florida, Code of Ordinances Page 3
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PART I - CODE
Chapter 114 - SOCIAL SERVICES
ARTICLE IV. RESIDENTIAL REHABILITATION PROGRAM
to anticipated household income, assets, and household data. A copy of the S.H.I..P.
income certification form will be maintained in the borrower's permanent file.
2—Documentation of income sources for each household resident or other immediate
family member over 18 years of age must be provided for the last 12 -month period
preceding the date of the application. Household income may not exceed 120%
of the area median income as adjusted to family size and published annually by
HUD /FHFC.
3— Adequate documentation may include, but not be limited to, the most recent
vear'ss federal income tax return.
4-- Failure to disclose and report all sources of household and family income during this
process will result in disqualification for a residential rehabilitation loan.
&_ --The c—o °. income certification shall be maintained as part of the permanent
program file for each homeowner making application to the Collier County Owner
OccupiedRe�.I Rehabilitation Program.
3--For purposes of this program, assets shall include, but not be limited to, real property
other than the property to be rehabilitated under this program, savings, stocks, bonds
and other forms of capital investment, excluding interests in Indian trust land and
equity in a housing cooperative unit.
b) Accept and Process Applications.
44---AII homeowners must provide adequate information so that a current
"third -party verification of employment form" can be completed in a timely manner by their
employer.
All household members 18 vears and older!. must complete
and sign the form's authorization portion (if applicable).' Homeowners.. °^—ts
must provide their employer's name, address, phone number and contact information.
2 Employer is requested tomust complete the third party verification of employment
information form, and sign the document, and return the document by mail or fax to
the department. If not supplied after reasonable attempts. alternative
documentation is allowed.
3. Applications will not be considered complete until the verification of employment form
has been signed and delivered to the department.
i —Third party verification of employment Information forms returned to the
department by potential participants will not be accepted for use in the program.
4—The third party verification of employment form shall be maintained as part of the
permanent program file for each homeowner making application to the Collier County
Owner- Occupied Residential Rehabilitation Program.
e-- -Where a homeowner or household member 18 years and older Gte p�
pa4isipaR4 is unemployed at the time that application is made to participate in the Collier
County Owner- OccuniedRes+cent+ai Rehabilitation Program, the form entitled
Collier County, Florida, Code of Ordinances Page 4
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"unemployed affidavit" shall be completed, signed, and notarized by the household
memberapp4 Gant.
1 If a homeowners becomes employed during the course of the program
application or during the rehabilitation phase if after the 120`' day of income
certification process, the homeowneri�a4 must report said employment to the
department within 30teR weFkiRg days of gaining employment, excluding holidays
and weekends, and complete a new third party verification of employment form,
referred to above.
2 —The unemployed affidavit shall be maintained as part of the permanent program file
for each homeowner making application to the Collier County Owner -
OccupiedResklen€ia4 Rehabilitation Program.
If homeowners f. If p9teRtial pa4iGipaRtS or any member of the household is receiving any
form of public assistance, the form entitled "third party verification of benefits" must be
completed as part of the application process.
4 --The total amount of public assistance that is provided to each individual residing in the
household must be documented on the third -party verification of benefits form.
2 -The "verification of benefits" form must include all sources of public assistance funds
for all household members.
37—The verification of benefits form shall be maintained as part of the permanent program
file for each homeowner making application to the Collier County Owner -
Qccjj iedRo�a Rehabilitation Program.
g- -Other verification forms may be developed and used from time to time by the department in
the course of the program in order to obtain third party verification of all sources of income
and verification of all assets claimed by an applicant or other household resident and /or
member making application to the program, to include, Social Security, Unemployment
Benefits, Veteran Benefits, Worker's Compensation, State and Private Retirement
Benefits, annuities, disability or death benefits, and severance payments.
�— Refusal by a homeownerae- -drat to provide information to the department
regarding sources for third party verifications for income and assets shall be
considered sufficient grounds for a negative determination of program eligibility.
(43 --Applicant eligibility determination.
a- -The department will maintain a program file for each homeowner
partis+pant that will contain all related homeowner -PaPtiGipaRt applications, verifications,
references, credit histories, and other related documents.
c) Homeowners must have made at least 12 monthly consecutive mort�4aae Tavments on
their current homestead property immediately prior to the application date to qualify
under this program, also. there can be no more than one delinquenev in this 12 month
period.
--Each homeownerapp4sa4# and household member 18 years and o1dersa-
app4isant must sign an "authorization for the release of information" form.
Collier County, Florida, Code of Ordinances Page 5
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Chapter 114 - SOCIAL SERVICES
ARTICLE IV. RESIDENTIAL REHABILITATION PROGRAM
2 Use of this form is restricted to the Department, its grantors, or a participating local
financial institution, as required and permitted by law.
.9—The authorization for the release of information form shall be maintained as part of the
permanent program file for each homeowner making application to the Collier County
Owner- OccUiiedResid-eat+a4 Rehabilitation Program.
Homeowner-- -Appli t eligibility determination shall include verification of
homeownersapp4Gat, is ownership of the property to be rehabilitated and disclosure of
mortgages to lending institutions.
4-. Where aR applicant homeowner owns title to the property to be rehabilitated,
homeownerapp4sa # shall provide a copy of the property deed to the department.
ij_i- -The home may not have a restriction or encumbrance that would impair
the �,00d and marketable nature of title epaf*men s��tt°U to the
ownership interest County property taxes and assessments must be current.
The Department or homeowner will obtain a copy of the deed by which
homeownerapp4isaRt acquired title of the property to be rehabilitated from the
public records of Collier County.
ii-- -Where no such public record exists, it shall be contingent upon the
homeownerapp4Gaat to demonstrate ownership of the property for which
application is being made.
2L—AII homeownersapp4ibaRts must provide adequate information so that the "verification
of mortgage or deed of trust" form can be completed by any lending institution holding
a note on the property to be rehabilitated.
Homeowner information must includea. AppliGaRts rust sap to Part —r
the name and
address of any lending institution holding a note on the property to be rehabilitated.
i If no lending institution holds a mortgage, homeownerapp4sa4# must designate
such information on, the verification of mortgage or deed of trust form.
4 I applicable, the lending institution must provide GGm#ete— Pam;;;; mortgage
information, and return the signed document to the department.
IF ......1�.... 4,1.. +hn r7 r.nnr +more+ chill nrnii�_� +rJ r! ncn�rl onro{nnn +n h� i +i{i�or-0
-.--The verification of mortgage or deed of trust will be maintained as part of the
permanent program file for each homeowner making application to the Collier County
Owner- OccupiedReside;tial Rehabilitation Program.
Collier County, Florida, Code of Ordinances Page 6
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ARTICLE IV. RESIDENTIAL REHABILITATION PROGRAM
d.) Homeowner(s) will not be eligible for assistance when during the previous three (3)
years prior to the date of application:
i) Previous principal residence or other real property was foreclosed,
ii) Given a deed -in -lieu of foreclosures; or
iii) Filed Chapter 7 bankruptcy (liquidation): or
iv) Filed Chapter 13 bankruptcy or
y) Presently delinquent on a federal tax liability, or
vi) Presently delinquent on Collier County property taxes
The property may have the following lienssr-it
and still _remain eligible for
assistance:
vii) A code enforcement lien that has been abated or that will be abated through the
use of rehabilitation funds.
viii) A down pavment assistance lien
ix) An affordable housing density bonus agreement
xl Impact fee deferrals
(1) Note: This listing is not meant to be all - inclusive of all possible types of liens
The Department will proceed with awards unless the prohibitions noted
above have been violated.
5- The properties assisted through the Owner- Occupied Rehabilitation ProtTram
must have a homestead exemption through the Collier County Property Appraiser's
Office.
e. Each homeownerp9teRtial PaFtiGipaRt shall be sent a letter from the Department notifying
them whether they meet the minimum eligibility criteria established herein.
Collier County, Florida, Code of Ordinances Page 7
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ARTICLE IV. RESIDENTIAL REHABILITATION PROGRAM
In cases where a horn.gownerpetential paptiGoa4# is determined to be ineligible, the
reasons for this determination shall be set forth in the notification letter to the peteRt+al
participant(s).
+—Any such negative determination of eligibility shall be mailed to the
homeownerapplisa� within thirty#�ree days from of such determination.
Homeowners. P9teRtial part'Gipa tS who have been determined to be ineligible shall be
given the opportunity to correct or explain in greater detail any information that
resulted in, or affected the negative eligibility determination made by the department.
3—The department director or his /her designee shall have the authority to make a final
determination regarding a homeowner'san-- app4Ga4s compliance with the
requirements for third party verification.
4.—The department director or his /her designee shall have the final decision- making
authority regarding a determination of eligibility or non - eligibility for participation in the
Collier County Owner Occupied ter —Rt4 Rehabilitation Program.
5. Such determination shall be kept as a permanent part of the homeowner'sappl+Gant's
program file.
0-}— Determination of corrective actions may be conducted prior to an applicant's receiving a final
determination of eligibility from department.
e) Refusal by a homeowner to provide information to the Department regarding sources
of income and assets shall be considered sufficient urounds for a neC7ative
determination of progam eligibility.
Homeowner Contractual Relationship with County
1) Prior to construction beginning the homeowner(s) must execute a second mortaaLe and
promissory note for the maximum amount of assistance which will be modified after final
completion of work to unit to reflect the actual amount of funds expended.
a) The secondan, mortgage must be executed on the second mortuage document or on a
substantially similar document that has been approved by the Collier County Attorney
Office.
Collier County, Florida, Code of Ordinances Page 8
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b) Lenders may include, but not be limited to Collier Countv Board of Countv
Commissioners or anv registered financial institution operating under the Laws of Florida
in Collier County, Florida.
c) The promissory note and the second mortgage shall set forth the obligations of the
borrowers) lender(s), mortgagors and mortLyaaee(s) as approved by the County
Attorney's Office.
d) Mortgage dollar amounts) shall be limited by and Shall not exceed:
i) Program guidelines as established by program grantors;
ii} Bids for rehabilitation services as submitted by participating contractors
e) The second mortgage shall be recorded with the office of the Collier County Clerk of
Courts upon closing of the rehabilitation loan with the Department and the homeowner.
f) Upon closing. the Department will cover the costs of recordation of the mortgage
instrument with the Collier County Clerk of Courts and documentary stamp tax
g) No final payment or disbursement of loan funds will be made or processed for the
contractor until the Department receives a certified copy of the recorded second mortgage
document.
h) A copy of the second mortgage shall be maintained as part of the permanent program file
for each homeowner(s) making application to the Collier County Owner Occupied
Rehabilitation Prog= =ram.
2) Horneowner(s) is /are responsible for reporting any change of income to the Department
within 30 days of anv change so that closing of an owner occupied rehabilitation loan is not
unduly delayed.
a) Changes in in household and /or family income Shall require that "applicant
income certification" be completed and recertified by homeowners) The Department
shall verifv all income certification and re- certifications using criteria established by the
Department and as may be amended from time to time to reflect current loan and
qualification standards.
3) Third party verification shall be completed prior to closing an owner occupied rehabilitation
loan and executing the second mortgage and the promissory note
4) Based on funding availability, certification of income and property eligibility clients will be
issued an award letter. The letter. at a minimum, will state the amount of the assistance, the
terms of the assistance and contact information for Department staff and /or County
representative /designee.
5) A copy of the promissory note shall be maintained as part of the pennanent program file for
each homeowner accepting funds for the Collier County Owner Occupied Rehabilitation
Prograin.
Collier County, Florida, Code of Ordinances Page 9
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ARTICLE IV. RESIDENTIAL REHABILITATION PROGRAM
6) Homeowner(s) must execute the Owner Occupied rehabilitation program performance
program document.
7) The performance agreement sets forth the obligations of the homeowner with regard to the
facts and purposes of the program which includes but is not limited to:
a) That homeowner understands the conditions of the loan, including program guidelines,
rules, and restrictions;
b) That benefits are not transferable.
e That eligible dwelling units be occupied by the homeowner prior to and after completion
of rehabilitation work to the dwelling unit,
d) That the eligible dwelling unit must comply with the requirements of the Florida Building
Code;
e) No homeowner co-owner or relative of an owner or co -owner shall serve as a contractor
or sub - contractor for the rehabilitation of the subject property, nor shall an owner. co-
owner or relative receive any compensation for their labor with any program funds:
0 A relative of a homeowner or co -owner shall be defined in this instance as an immediate
fam.ilv member to include mother, father. brother. sister, aunt. uncle. wid cousin or a
family member by mai-riatze to include mother -in -law. father -in -law, brother -in -law. and
sister -in -law.
=r) That all work- erfomied by a contractor will be in accordance with the inspection report
prepared by Collier County and /or its representative /designee and that no changes to bid
work will be paid for with loan funds where there has not been express written prior
approval by the Department director or his /her designee on the fonn entitled "Owner
Occupied Rehabilitation Program Change Order."
h) That access to the property and dwelling unit will be provided to County and /or its
representative /designee conducting inspections to detennine interim progress and /or
completion of work for any or all rehabilitation work performed with funds from this
program.
i) That contractor is responsible for acquiring any aid all permits and approvals to perform
work under this program and must provide evidence of permits where requested, by
Countv and/or its representative /designee including but not limited to inspectors.
i) That pavment for any work p-erfonned prior to execution of the second mortgage,
promissory note or other approved instrument, including but not limited to. an official
notice to proceed shall not be the responsibility of the County
k) Liability for pavment for anv work performed by the contractor which does not conform
to the work write -up where express written approval has not been given by the
Department shall be the sole responsibility of contractor.
1) Funds will be secured with a recorded fifteen (15). zero interest. deferred subordinate
mortgage as further identified in the SHIP LHAP on the property in the amount of the
subsidy used in the project. If all conditions of the loan are met, one -third of the loan will
Collier County, Florida, Code of Ordinances Page 10
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be forgiven in five year increments so that at the end of the fifteenth year the loan is
forgiven. Monthly payments are not required
m) That the homeowner shall occupy the rehabilitated residential unit as the rimaly
residence until a satisfaction of mortgage for a period of 15 years or the terms of the
second mortgage has been fulfilled whichever comes first If the homeowner does not
fulfill the obliaations identified they shall be in default of this performance agreement
the required second mortgage and the promissory note and repavment of the balance of
the second mortgage shall become due and pavab1e immediately_
n) That the maximum amount of the loan shall be the actual amount paid to the contractor,
or 530,000.00, whichever is lest The Department director may obtain approval of the
Board of County Commissioners on a case by case basis for subsidies above the
established levels to accommodate a Special needs housing applicant or other Situation in
which it is determined that the assistance is necessary and /or not evident at time of bid.
8) Historically Significant Properties:
a) Improvements must be consistent with those approved by the Florida Department of State
in accordance with the most current revision of "Secretai-v of the Interior's Standards for
Rehabilitation and Guidelines for Rehabilitation of Historic Buildings," and
Improvements must comply wit], the Collier County Historic /Archaeological Preservation
Ordinance. Ordinance
Determination of Rehabilitation Needed
1) County and/or Representative /Designee Initial Inspection and Initial Work Write Up
Collier County and /or its representative /designee will conduct and complete the initial inspection
of a dwelling unit under this program no later than 30w+t#1+fl days of notification of a
homeowner's el.igibihtypaFtisipa#Ien in the Collier County Owner - Occupied e&c d aT
Rehabilitation Program by the department. Should additional time be needed to initiate the
inspection. documentation must be included in the file justifying the waiver of time
a. Initial inspection will determine any if theFe deficiencies.
Stand@FdsurQS). -
b,.—Collier County and/or its representative designee will document the results of the initial
inspection on an inspectionfhe HQS StaRGIRFEiR fArrA
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4. The WQS standaFds form
i) The inspection report shall be maintained as part of the permanent program file for
each homeowner making application to the Collier Countv Owner - Occupied
Rehabilitation Program.
Collier Countv will at its" option, obtain an independent validation of the inspection,
work scope and prioritization to include an independent cost analysis, and then_
GGYRt shall identify and prioritize the rehabilitation scope on the "inspection
report" completed for each dwelling unit so that rehabilitation services can be directed at
elimination of any pressing and immediate safety and /or health concern. This will be
referred to as the basis for the bid specifications; or work write -up.
4 . Health and safety housing code violations shall be given priority by the County
and /or representative /desianeeeeetP@ s over any cosmetic rehabilitation work
during inspection, bid preparation, and provision of rehabilitation services.
2—It shall be the responsibility of the County and /or its representative/desi�neefehab
to determine and prioritize
rehabilitation services beyond immediate health and /or safety concerns which are
identified and prioritized by the inspection. The Countv may seek an independent
validation of the need and cost for any such items. .
b) Bid specification development.
i) Countv and /or its representative /designee shall develop a work write up and
specifications for the project that details the quality and quantity of material to be
installed in the property. The work write up will provide details of how the work is to
be preformed quality of products to be installed and installation methods.
ii) The Countv and /or its retresentative/desiunee shall develop a cost estimate for the
project. The Countv may seek an independent validation of the cost estimates
prepared by the representative /designee. The work write - up and cost estimates will
be submitted to the County and /or its representative /designee for revieNv and approval
prior to the project sent out to bid.
T
a—Any such rehabilitation work that may go beyond the minimum requirements of the Florida
Building Code shall be documented and noted on the work write -up form by the
inspector .
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d.—The
that R; ,6+ be completed
2. The Collier County Owner- OccupiedResideatkal Rehabilitation Program bid
specification
will serve as
the basis for bids from contractors which will address –a4 documented housing code
deficiencies of the eligible dwelling unit and any other work that may need to be completed
to protect the health and safety of residents and /or the integrity of the dwelling unit.
c) The contractor shall document estimated material requirements and unit labor
i) Costs for installation of materials on the bid specification document
Once approved by the County. d copy of the signed, completed Collie
specs will be provided to the homeowner e
depaAa}ent within a reasonable periodteR WGFk;Rg days of time after the completion of
the inspection. The homeowner will sign the bid specification document as an
indication of awareness. -by-G to .
d) If the County is operating the program through a representative or designee the Countv
will issue a Notice to Proceed to that entity when all approvals have been obtained on the
bid specification document. to allow the bid process to proceed
e Bid Process
i� The County and /or its representative /designee will solicit bids proposal from local
contractors for any upcoming projects This solicitation will include the date time
and location of the mandator, contractor walk- through meeting for each project
ii) The Bid Proposal will list, in detail all specifications of materials to be used and the
scope of work to be performed. This will ensure that contractors are bidding based on
the use of similar or like materials and scope of work
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iii) A Mandatory Walk - Through Meeting will be held to view the property. ask questions
and discuss project details with the homemmer(s) and the County and /or its
representative / designee relatim_to the scone of work in the bid documents. Changes.
additions deletions and refinement of work details or the scope may be made during
this walk through This is the first opportunity for the Contractor to view the property.
The walk- throuzzh will start promptly at the time specified. Contractors may not begin
to inspect the home or construction site before the County and /or its
representative /designee arrives and the walk - through officially starts. Contractors are
required to sign in the official attendance sheet. Contractors who do not sign the
official attendance sheet will not be eliC7ible for bid selection on the project. Changes
to bid specifications will be reviewed at the end of the walk-through to ensure all
Contractors are aware of any changes discussed durin« the walk - through. If changes
are made to the original bid specification. Contractors will receive revised bid
documents via electronic mail prior to the bid opening date. Contractors must use the
bid work write up form provided in the bid documents to submit the bid. Once the
work is awarded no changes may be made to the work write -up except in the event of
unforeseen circumstances as determined by the Countv and /or its
representative /designee or unless a change in the scope of work is required by the
County Building Department. Failure to bid accordin�l to the final bid specifications
may be just cause for disqualification of the Contractor's bid.
iv) The Bid Submittal must be submitted on the official bid specification document form
provided in the bid documents. Each Contractor shall provide line item prices for
each item specified on the work write -up and overhead should be added at the end.
v) All prices on the bid specification document must be written in ink. Signatures must
also be in ink. If a mistake is made on the bid. the chane must be initialed by the
Contractor prior to submitting the bid. It is the contractor's responsibility to remain
informed regarding permit fees. impact fees. material costs and other requirements
that might increase the cost of work. Once a bid is submitted, the Contractor is bound
to the price that is stated on the submitted proposal.
vi) For model or materials not specified. prices should match the home 's existing models
and materials in auality and style. If a specific model is specified. the Contractor will
be expected to install that model or product number. A Contractor cannot deviate
from the product specified without written authorization from the County and/or its
representative /designee. All questions related to the job specifications must be cleared
prior to submission of bid by contacting the County and /or its
representative /designee.
vii) All bids must be in a sealed envelope. The Contractor /Bidder's name and the bid
number must be clearly written on the front of the sealed envelope. Completed bids
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must be delivered to the Countv and /or its representative /designee on or before the
scheduled bid date and specified time Late bid responses will not be accepted
Contractor selection.
¢a-}—Solicitation of contractors by Counts, and /or its representative% designee owner
0+—The County and/or its representative /designee willewReF mys t solicit bids from ^+ 4�, ;9e.
contractors and /or subcontractors.
1) The County and/or its representative /designee will review the bids to ensure that all
mandat_gry work is included-, that it conforms to program specifications and that the cost
is reasonable for the project by reviewing it against an independent cost estimate
Estimates that are unreasonable. inaccurate. contain incorrect totals are unsigned. or
submitted in pencil may be rejected at the option of the County and /or its
representative /designee. The following criteria will be used to determine the winning
bid:
a) The bid is the lowest responsible responsive bid;
All required contractor paperwork
bids; a. Qepy af the
licenses;
G. Current certificates of insurance with coverage for:
I — Current liability insurance;
2— Current workmen's compensation;
,3 Current business auto liability.
(The contractor is an independent contractor and shall not be deemed an agent, employee or
partner of the county. In addition, no owner. co -owner or relative of an owner or co-
owner shall serve as a contractor or sub - contractor for the rehabilitation of the subject
property, nor shall an owner- co -owner or relative receive any compensation for their
labor with program funds. A relative of a homeowner or co -owner shall be defined in
this instance as an immediate family member to include mother father brother sister,
aunt. uncle and cousin or family member by marriaim to include mother -in -law, father -
in -law, brother -in-law and-sister-in-law.
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2) The County will approve the final selection. and issue a Notice to Proceed to the
representative or designee.
OD4— Administration of residential rehabilitation.
0- —A copy of the bid document submitted by the entity;9# raster who is awarded the contract for
an individual dwelling unit shall be provided to the Department and to the county clerk finance
department at time of reimbursement request to ensure that payments made to contractors
reflect costs included in the bid.
Notice to Proceed Contractors are not authorized to begin construction until they receive a
Notice to Proceed from the Department and /or its representative /desi �_),nee. The
contractor .
a, .,waF4eo will receive a notice to proceed when:
4 --The homeowner has executed and the Department has recorded the second
mortgage and .
2. The hGM@eWReF haS 8XGGWtGd +ho promissory note.
2 The homeowner has signed a "contract peFferrnaRGe agreeme t" with Collier
County or its designee /representative.
b ---The official notice to proceed will be issued in a formal letter from the department and /or
representative /desiunee-
th RtFaGtnr' aWaFdS letteF
d--The contractor's award letter shall be maintained as part of the permanent program file for
each homeowner making application to the Collier County Owner OCCUDied Residential
Rehabilitation Program.
1) No payment or advance of loan funds will be made or processed for the pro (-,tram
participant/homeowner or the contractor until the Department receives a copv of the
promissory note from the homeowner.
2) A col2v of the promissory note shall be maintained as part of the permanent program file for
each homeowner making application to the Collier County Owner Occupied Rehabilitation
Program.
{3}-- Notice of commencement.
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Following the Notice to Proceed a a. Notice of commencement must be filed by
contractor with the Collier County Clerk prior to commencement of construction of
the project pursuant to the requirements of Chapter 713, Florida Statutes, for each
dwelling unit receiving rehabilitation services under the Collier County Owner -
0ccupiedPti,4de„f'a; Rehabilitation Program.
a) —A certified cozy or affidavit attestin;,, to the recorded Notice of Commencement must be
posted at the iobsite. The notice at a minimum should contain the followim-Y details:
property owner, lender information iobsite address contractors etc This document will
protect the property owner's title to the property
b. Collier County Board of County Commissioners shall be named on the notice of
commencement as "lender."
s —The department shall be named on the notice of commencement as "persons within the
State of Florida designated by owner upon whom notices or other documents may be
served" as provided by F.S. § 713.13(1)(a)7.
(s)— Monitoring for rehabilitation /emergency home repair.
- -apy ef the signed- A-antrap-t to be kept In the GWReF'6 perrnaReRt file.
{�} —All work performed by contractor(s) and its subcontractor(s) shall be in accordance with:
a. —The inspection report completed and submitted by the—Collier County and /or its
representative /designee .
b—Bid documents submitted by the contractor on the bid specification and any supplemental
plans submitted in conjunction with this form.
O4 —All work performed by any contractor(s) and their subcontractor(s) must conform to the local
and state laws, includingregu+rements$#:
a— Florida Building Codes and Collier County Housing Code, Ordinance No. 89 -06, as
amended; and
(1) Collier County Residential Rehabilitation Standards as amended
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41_�-- Required documentation for rehabilitation /emergency home repair. The following documents are
required of all eligible households for repair loans:
4 — Rehabilitation /emergency home repair bid specification. All work that is to be performed must be
listed on this form detailing labor and material costs. This form must be delivered to a
representative of the department prior to the commencement of any repair work. A signed copy
will be provided to the owner and to the finance departments. Loans granted under this
program, but are limited to a maximum of $304-5,000.00 per household.
R4 —Final inspection. A copy of the signed final inspection will be maintained in the owner's
permanent file. A copy of the final inspection will be provided to the department of finance.
along with the final payment request.
k, }— Promissory note. This note will be used specifically for the loans granted under the owner
occupied rehabilitationierneFgeRGY hGFnG repai program. A copy of the note will be maintained
in the owner's permanent file, and will recorded withinatse be seR t —tQ the County
ClerkdapaFtFR9Rt of the Courts files Department#+aa4Ge. The original, executed note will be
kept on file in the department.
4}— Second mortgage. The second mortgage will be used to secure the promissory Note and will be
recorded by the Clerk of the Circuit Court for Collier County. The original, recorded second
mortgage will be kept on file in the department. Copies will also be made available to the owner.
All fees and the aFtmeRt ^f finaRGe. All fee's associated with the recording of this document
will be paid by the department.
{54— Waiver of lien. Upon completion of the repair work, the contractor will be required to execute a
waiver of lien. The final payment will not be Ne payments shall "° disbursed until the
department receives the waiver of lien, a satisfactory inspection report and the itemized
contractor's invoice.
See. 114 7-5. Gentraratual Felationship between GellieF County and preqFaM (s1)-.
Collier County, Florida, Code of Ordinances Page 18
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Of
rehabilitation work.
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fad lnterim inspections.
0- — Contractors are responsible for arranging interim inspections with appropriate county or city
departments.
a—All work performed under the Collier County Owner Occupied ResideRtial Rehabilitation
Program must conform to all state, county, and /or city code requirements to be reimbursed
under this program.
A scheduled inspection is required prior to receiving a draw request. The County and /or its
representative /designee will schedule an inspection after receiving and reviewing the request
for payment No payment will be processed without completin, a successful inspection with
the Countv andlor its representative /designee.
R4-- Copies of inspection forms shall be signed by each individual performing an inspection and a
copy of the completed, signed inspection form will be provided to the department within three
working days of completing each inspection.
a. Each inspection form shall be maintained as a permanent part of each homeoxvner's
program parf+sipa file-
04}--Final inspections.
4 -- Contractors are responsible for arranging final inspections with appropriate county or city
inspection departments.
4 — Copies of inspection forms shall be signed by each individual performing an inspection and a
copy of the completed, signed inspection form will be provided to the Department
prior to the rp ojecfs completion andef
aRy final inspection.
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a. Each inspection form shall be maintained as a permanent part of each program
participant's file.
4 --The SellieF County and /or its representative /designee R shall be vested with
the authority to make a final determination of conformance to code requirements for all code
related rehabilitation work performed under this program.
4�—AII rehabilitation work performed under the Collier County Owner Occupied°e &4e„na:
Rehabilitation Program must conform to the requirements of the Collier County Department
Rehabilitation Standards as amended
if applicable, as well as general industry work quality standards for such work, in order to pass
inspection(s) and be reimbursed under this program.
k55 --The department director or his /her designee shall be vested with the authority to make a final
determination of work completeness and work quality in the event that there is disagreement
among any of the parties.
}—Such inspections may address, but are not limited to:
4 — Inspections prior to mediation between the homeowner and contractor, when needed;
{4)- -- Inspections to determine extent of work progress prior to approval for final payment to
contractor;
(G4—Inspection to determine if all receipted, purchased materials have been installed;
4 — Inspection to obtain homeowner final sign -off and approval for final payment to contractor.
•• . ., . ..
Ses. 114-'. " "- �..et„e of payment for rehabilitation work performed.
4 — Performance bonds.
4 --No performance bond shall be required to be posted by a contractor selected by ewaepunder
this program.
Change Ordef s.
1 No alteration of materials or labor described in the original work order shall take place unless
in writing and mutually agreed to by the County and /or its representative /designee All
chances must be submitted on a Chanue Order Form sinned and dated by the County and/or
its representative /designee Any such changes are subject to the terms of the contract
Contractors must provide before and after pictures of the work associated and a price cost
analysis prepared with change order request Change orders must be submitted and approved
prior to the final draw request and will only be considered in the case of circumstances
Collier County, Florida, Code of Ordinances Page 23
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unforeseen at the time of the walk- through or for additional work requested by the Building
Department The County and /or its representative /designee reserve the right to deny any
change order request.
Method(4}—s of payment for work performed.
11 Upon final inspection the transfer of all warranties to the homeowner, releases. as identified
by the County and /or its representative /designee. the follow process shall be followed:
i m:
a. One _time payment for services:
I — Contractor submits a finalan invoice to the department and /or its
representative /designee when all the work is completed.
2L.— Payment to contractor is contingent on submission of the final inspection report by the
Countv and /or its representative /designeefe4ab- spesiatist to the department and
final inspection by appropriate personnel, and must be accompanied by:
i— Affidavit from contractor stating that subcontractors and material suppliers have
been paid for the particular job for which the contractor is
submitting a request for payment to Collier County.
b- -Final inspections by the Department will not be conducted until such time
that final, notarized originals of waiver of lien to date have been submitted to
department for the contractor, subcontractor(s) and material vendors aR
performing rehabilitation work on the dwelling unit to be
inspected.
fi
In the alternative, upon submission of invoices or other documentation from
contractor and a written notarized statement from contractor that materials have
been supplied and services rendered which are satisfactory to contractor,
payment shall be processed.
Final inspection of all rehabilitation work shall be conducted by the department
and/or its representative /designee and personnel from applicable county. /city
departments ^r G..
4r —The homeowner(s)., and the department director or his /her designee complete
and sign form entitled "disbursement authorization."
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3:-- Collier County Clerk's Finance Department shall process payment to the County
and/or its representative /designee and other contractual agreements approved
by the Board of County CornrnissionerSG9RtFaGt9 r for the contract amount and for
any additional work authorized and documented on the change order by the
department director or his /her designee.
�— Contractor is responsible for providing payment to any and all sub - contractors
performing rehabilitation work on dwelling units and property.
(b) Payment Reduction
I. In accordance with its project contracts the County and /or its
representative /designee reserve the right to decline payment or reduce the
amount of a draw to such an amount as is necessary to protect the homeowner
from loss or to recover the cost incurred to correct or complete the Specified
work for reasons including. but not limited to:
a. Defective work not corrected
b. Third -party claims filed or with reasonable evidence indicating
probably filing of such claims
c. Failure of the contractor to make pgamaents to subcontractors
laborers /workers or material suppliers
d. The amount of work completed is not enough to constitute a draw
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(c) Suspemions and Di,gquali ieations
i) The County and /or its representative /designee may implement this section.
Contractors may be suspended or disqualified for any of the following
reasons:
1) Self - imposed: A contractor may disqualify him /herself before contract
sinning for conflicting work contracts or personal hardship
2) Lack of Participation: A contractor that does not participate or respond to
an invitation to bid within a twelve month period will be placed on
Inactive status and will no longer be sent bid information. Inactive
contractors must reapply and be accepted in order to begin receiving bids
as
3) Insurance Violations: If at anv time a contractor fails to have required
insurance, he /she will be automatically suspended until proof of insurance
is provided. The contractor must have insurance at all times. Changes in
coverage must be reported in writing to the County and /or its
representative /designee within five working days of such change,
including renewals.
4) Business License Violations: Any contractor who has a license suspended.
revoked. rejected or inactivated will be automatically disqualified. All
license renewals must be current and a copy provided to the County and /or
its representative /designee
5) Failure to Honor Warranties: Anv contractor who fails to honor a warranty
from a previous contract will be barred from future bidding for one year
and must reimburse the Countv and /or its representative /designee for the
cost of any work- perfonned by another to correct the warranty work.
6) Default: If a contractor defaults or does not complete an assigned project,
he /sh.e will be disq- ualified indefinitely from participating in Countv
housing programs.
7) Willful Misconduct: Willful misconduct by contractor, employees or
subcontractors while engaged in a project will not be tolerated.. The
contractor may be disqualified from the program for behavior such as. but
not limited to, theft. lewd or lascivious acts. foul language, public
intoxication. and illegal drug use. willful destmetion of the homeowner's
property or abusive behavior towards the homeowner or County staff.
b) Contractor Negligence: Failure to adhere to building codes. construction
industry standards. contract specifications and material requirements.
Collier County, Florida, Code of Ordinances Page 26
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9) Payment Delinquency: Failure to pay subcontractor or material suppliers
10) Kickbacks/Price Fixing: Accepting kickbacks or price fixing by
between contractors. its employees officers owners agents partners
representatives or any other affiliates
H.) Brokerage of Work: Brokering work to another licensed or unlicensed
contractor. Anvone brokering work or receiving a brokered contract will
be immediately suspended and possibly be disqualified indefinitely from
participating in any work p rogram through the County
(d) lien Waivers
0 The contractor shall protect. defend and indemnify the County and /or its
representative /designee and homeowner from all claims of unpaid work labor
or materials. The contractor must sign a Release of Lien prior to receiving any
pavments. This will be required of the contractor at every draw request: not
exceptions will be made. It is the contractor's responsibility to obtain Release
of Liens from its subcontractors material suppliers and any other affiliates
associated with the project.
Program participant files.
4 — Copies of every form and copies of all receipts used in the contractor payment process shall be
kept as a part of each individual homeowner's program file.
See. 11.4- - Disaster waiver.
(a}—In the event of a natural disaster, program guidelines regarding pre- qualification of participating
contractors may be waived by the Department in order to expedite needed repairs and
improvement to damaged properties. with the approval of the Department.
0;)—Any dollar expenditure cap in effect for any state or federal program that provides funds used in the
Collier County Owner Occupied Program may be waived or increased where the
governor of the State of Florida; or the executive officer of any state or federal agency issues an
executive order, or other such directive, waiving or increasing said cap.
(c4—All Collier County Owner Occupiedentimal Rehabilitation Program requirements for
documentation by contractors of material purchases and estimated labor costs shall remain in effect.
Collier County, Florida, Code of Ordinances Page 27
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Collier County, Florida, Code of Ordinances Page 28
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ORDINANCE NO. 2014 -
AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF
COLLIER COUNTY, FLORIDA, REPEALING AND REPLACING
ORDINANCE NO. 94 -39, AS AMENDED, WHICH ADOPTED THE
COLLIER COUNTY RESIDENTIAL REHABILITATION PROGRAM,
IN ORDER TO ADOPT A REVISED PROGRAM TO BE KNOWN AS
THE "COLLIER COUNTY OWNER - OCCUPIED REHABILITATION
PROGRAM," PROVIDING FOR FUTURE AMENDMENT OF THE
PROGRAM BY RESOLUTION OF THE BOARD OF COUNTY
COMMISSIONERS; PROVIDING FOR CONFLICT AND
SEVERABILITY; PROVIDING FOR INCLUSION IN THE CODE OF
LAWS AND ORDINANCES; AND PROVIDING FOR AN EFFECTIVE
DATE.
WHEREAS, the Florida State Legislature enacted the William B. Sadowski Affordable
Housing Act on July 7, 1992 (the "Act "), Section 420.907, et seq., Florida Statutes, with rules
adopted at Chapter 67 -37, Florida Administrative Code, as a comprehensive funding package for
state and local housing programs to better enable local governments to meet their responsibilities
for affordable housing in accordance with their comprehensive plans; and
WHEREAS, pursuant to the Act, the State has allocated a portion of new and existing
documentary stamp taxes on deeds (the "SHIP" funds) to local governments for development
and maintenance of affordable housing; and
WHEREAS, Collier County has adopted by Resolution, as amended by Resolution, a
local Housing Assistance Plan, and which provides a maximum award schedule, a cost per unit,
and a maximum cost per unit for eligible housing benefitting from awards made pursuant to the
SHIP funds; and
WHEREAS, the County, by County Ordinance No. 94 -39, adopted a residential
rehabilitation program consistent with the Local Housing Assistance Plan, which will utilize
various funding sources; and
WHEREAS, the Board desires to .repeal and replace Ordinance No. 94 -39, as
subsequently amended, in order to adopt a revised residential rehabilitation program, to be
known as the "Collier County Owner- Occupied Rehabilitation Program," attached hereto as
Attachment A; and
WHEREAS, the Board desires that future amendments to the new Owner- Occupied
Rehabilitation Program, as set forth in Attachment A, may be accomplished by Resolution of the
Board of County Commissioners.
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NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY
COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that:
SECTION ONE: ADOPTION OF THE COLLIER COUNTY OWNER- OCCUPIED
REHABILITATION PROGRAM.
The Collier County Owner- Occupied Rehabilitation Program (Program) is hereby
adopted. A copy of said Program, including Program forms and other necessary forms and
contracts, is attached to this Ordinance and adopted and made a part of this Ordinance by
reference. The forms used in the implementation of the Program may be modified
administratively from time to time to conform to the requirements of the funding sources.
SECTION TWO: FUTURE AMENDMENTS TO THE PROGRAM.
Future amendments to the Program may be accomplished by Resolution of the Board of
County Commissioners.
SECTION THREE: CONFLICT AND SEVERABILITY.
In the event this Ordinance conflicts with any other ordinance of Collier County or other
applicable law, the more restrictive shall apply. If any phrase or portion of the Ordinance is held
invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a
separate, distinct and independent provision and such holding shall not affect the validity of the
remaining portion.
SECTION FOUR: INCLUSION IN THE CODE OF LAWS AND ORDINANCES.
The provisions of this Ordinance shall become and be made a part of the Code of Laws
and Ordinances of Collier County, Florida. The sections of the Ordinances may be renumbered
or relettered to accomplish such, and the word "ordinance" may be changed to "section,"
"article," or any other appropriate word.
SECTION FIVE: EFFECTIVE DATE.
This Ordinance shall be effective upon filing with the Department of State.
Page 2 of 3
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PASSED AND DULY ADOPTED by a vote of a majority of the Board of County
Commissioners of Collier County, Florida, this day of 2014.
ATTEST: BOARD OF COUNTY COMMISSIONERS
DWIGHT E. BROCK, CLERK COLLIER COUNTY, FLORIDA
LIM
, Deputy Clerk
Approved as to form and legality:
Jennifer A. Belpedio
Assistant County Attorney
TOM HENNING, CHAIRMAN
Page 3 of 3
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EXHIBIT A
OWNER - OCCUPIED REHABILITATION PROGRAM
Proeram Description.
6/24/2014 16.D.3.
The purpose of this policy is to establish administrative procedures and program guidelines for the SHIP
Owner - Occupied Rehabilitation Program.. The program provides for repairs or improvements necessary for
safe or sanitary habitation, correction of substantial code violations or addition of handicapped accessible
items All units rehabilitated with the funds provided from the local housing assistance trust fund must be
occupied by very -low, low- or moderate income persons.
Loans are limited to a maximum amount as established in the applicable LHAP. NOTE: Special Exception:
The Director may obtain approval of the Board of County Commissioners on a case by case basis for subsidies
above the established levels to accommodate a special needs housing applicant or other situation in which it is
determined that the assistance is necessary and /or not evident at the time of bid.
Definitions.
Definitions referenced in the Ordinance shall be the same as those definitions set forth in Rule 67- 37.002,
Florida Administrative Code.
Income data for the Naples Metropolitan Statistical Area are supplied by the U.S. Department of Housing and
Urban Development (HUD), and apply to all of Collier County. The definition for "annual income" is found in
24 CFR Subpart F of Part 5.
Administration.
1) This program shall be administered by the Collier County Housing, Human and Veteran Services
Department (14HVS), or its representative /designee, hereinafter referred to as "Department."
2) The Department shall be responsible for:
a) Identifying potential homeowners.
i) Potential participants for the program will be identified through the following activities:
ii) In accordance with Section 420.9075(4)(b), Florida Statutes, if the Department has a waitlist, the
participants will be contacted in the order they were placed on the waitlist. In the absence of a
waitlist, the Department will advertise in a newspaper of general circulation and periodicals
serving ethic and diverse neighborhoods announcing the program and the availability of funds
for rehabilitation services.
iii) The Department will contact local non - profit, community -based organizations in the county
through outreach activities to locate potential program participants.
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EXHIBIT A
iv) Chapter 420.9071, Florida Statutes, as amended from time to time, defines community -based
organization as "...a non - profit organization that has among its purposes the provision of
affordable housing to persons who have special needs or very low- income persons, low - income
persons, or moderate - income persons within a designated area, which may include a
municipality, a county, or more than one municipality or county,. A community housing
development organization established pursuant to 24 CFR, Part 92.2 and a community
development corporation created pursuant to F.S. Ch. 290, are examples of community-based
organizations."
v) The Collier County Code Enforcement Department can refer potential clients that have been
cited with violations of Collier County Housing Code Ordinance No. 89 -06, as amended, to the
Department. The Department will determine the individual/family interest in participating in the
program and whether the potential participant is income eligible to participate in the program,
pursuant to the requirements set forth below.
vi) The homeowner(s) will be accepted on a first come, first served, first qualified basis.
b) Determine homeowner eligibility.
i) All homeowners in this program must have fee simple ownership of the owner - occupied
dwelling unit for which residential rehabilitation services are requested.
ii) Where there are co- owners for a property, each co -owner is required to participate in the
application process, the income eligibility determination process which includes household
income and asset certification and third party verification, and the secondary mortgage /lien
application and closing process.
iii) Accepting and processing applications for rehabilitation services:
iv) All potential homeowners must complete the program application
v) The application form shall be used to document the general information regarding the potential
homeowner which will include, but not be limited to, ownership status, number of residents
living in the housing unit, previous residences, employment history, and all financial assets
owned by the households.
vi) The application must be signed by all parties with an ownership interest in the property.
vii) The application for housing assistance shall be maintained as part of the permanent program file
for each homeowner making application to the Collier County Owner - Occupied Rehabilitation
Program.
Viii) All potential homeowners must sign the "Income Certification."
ix) Income certification. This form is required documentation for any program utilizing the monies
as a funding source. Information contained herein relates to anticipated household income,
assets, and household data. A copy of the income certification form will be maintained in the
borrower's permanent file.
x) Documentation of income sources for each household resident or other immediate family
member over 18 years of age must be provided for the last 12 -month period preceding the date of
the application. Household income may not exceed 120% of the area median income as adjusted
to family size and published annually by FM/FHFC.
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EXHIBIT A
xi) Adequate documentation may include, but not be limited to, the most recent year's federal
income tax return.
xii) Failure to disclose and report all sources of household and family income during this process will
result in disqualification for a residential rehabilitation loan.
xiii) The income certification shall be maintained as part of the permanent program file for
each homeowner making application to the Collier County Owner Occupied Rehabilitation
Program.
xiv) For purposes of this program, assets shall include, but not be limited to, real property
other than the property to be rehabilitated under this program, savings, stocks, bonds and other
forms of capital investment, excluding interests in Indian trust land and equity in a housing
cooperative unit.
c) Accept and Process Applications.
i) All homeowners must provide adequate information so that a current "third -party verification of
employment form" can be completed in a timely manner by their employer.
ii) All household members 18 years and older must complete and sign the form's authorization
portion (if applicable). Homeowners must provide their employer's name, address, phone number
and contact information.
iii) Employer is requested to complete the third party verification of employment information form,
and sign the document, and return the document by mail or fax to the Department. If not
supplied after reasonable attempts, alternative documentation is allowed.
iv) Applications will not be considered complete until the verification of employment form has been
signed and delivered to the Department.
v) Third party verification of employment information forms returned to the Department by
potential participants will not be accepted for use in the program.
vi) The third party verification of employment form shall be maintained as part of the permanent
program file for each homeowner making application to the Collier County Owner - Occupied
Rehabilitation Program.
vii) Where a homeowner or household member 18 years and older is unemployed at the time that
application is made to participate in the Collier County Owner - Occupied Rehabilitation Program,
the form entitled "unemployed affidavit" shall be completed, signed, and notarized by the
household member.
(1) If a homeowner becomes employed during the course of the program application or during
the rehabilitation phase if after the 120t` day of income certification process, the homeowner
must report said employment to the Department within 30 days of gaining employment,
excluding holidays and weekends, and complete a new third party verification of
employment form, referred to above.
(2) The unemployed affidavit shall be maintained as part of the permanent program file for each
homeowner making application to the Collier County Owner - Occupied Rehabilitation
Program.
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EXHIBIT A
viii) If homeowners or any member of the household is receiving any form of public
assistance, the form entitled "third party verification of benefits" must be completed as part of
the application process.
ix) The total amount of public assistance that is provided to each individual residing in the
household must be documented on the third -party verification of benefits form.
x) The "verification of benefits" form must include all sources of public assistance funds for all
household members.
xi) The verification of benefits form shall be maintained as part of the permanent program file for
each homeowner making application to the Collier County Owner - Occupied Rehabilitation
Program.
xii) Other verification forms may be developed and used from time to time by the Department in the
course of the program in order to obtain third party verification of all sources of income and
verification of all assets claimed by an applicant or other household resident and/or member
making application to the program, to include, Social Security, Unemployment Benefits, Veteran
Benefits, Worker's Compensation, State and Private Retirement Benefits, annuities, disability or
death benefits, and severance payments.
xiii) Refusal by a homeowner to provide information to the Department regarding sources for
third party verifications for income and assets shall be considered sufficient grounds for a
negative determination of program eligibility.
3) Applicant eligibility determination.
a) The Department will maintain a program file for each homeowner that will contain all related
homeowner applications, verifications, references, credit histories, and other related documents.
b) Homeowners must have made at least 12 monthly consecutive mortgage payments on their current
homestead property immediately prior to the application date to qualify under this program, also,
there can be no more than one delinquency in this 12 month period.
c) Each homeowner and household member 18 years and older must sign an "authorization for the
release of information" form.
i) Use of this form is restricted to the Department, its grantors, or a participating local financial
institution, as required and permitted by law.
ii) The authorization for the release of information form shall be maintained as part of the
permanent program file for each homeowner making application to the Collier County Owner -
Occupied Rehabilitation Program.
d) Homeowner eligibility determination shall include verification of homeowners ownership of the
property to be rehabilitated and disclosure of mortgages to lending institutions.
i) Where applicant homeowner owns title to the property to be rehabilitated, homeowner shall
provide a copy of the property deed to the Department. The home may not have a restriction or
encumbrance that would impair the good and marketable nature of title to the ownership interest.
County property taxes and assessments must be current.
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(1) The Department or homeowner will obtain a copy of the deed by which homeowner acquired
title of the property to be rehabilitated from the public records of Collier County.
(2) Where no such public record exists, it shall be contingent upon the homeowner to
demonstrate ownership of the property for which application is being made.
ii) All homeowners must provide adequate information so that the "verification of mortgage or deed
of trust" form can be completed by any lending institution holding a note on the property to be
rehabilitated.
iii) Homeowner information must include the name and address of any lending institution holding a
note on the property to be rehabilitated.
iv) If no lending institution holds a mortgage, homeowner must designate such information on, the
verification of mortgage or deed of trust form.
v) If applicable, the lending institution must provide mortgage information, and return the signed
document to the Department.
vi) The verification of mortgage or deed of trust will be maintained as part of the permanent
program file for each homeowner making application to the Collier County Owner- Occupied
Rehabilitation Program.
e) Homeowner(s) will not be eligible for assistance when, during the previous three (3) years prior to
the date of application:
i) Previous principal residence or other real property was foreclosed; or
ii) Given a deed -in -lieu of foreclosures; or
iii) Filed Chapter 7 bankruptcy (liquidation); or
iv) Filed Chapter 13 bankruptcy; or
v) Presently delinquent on a federal tax liability; or
vi) Presently delinquent on Collier County property taxes
f) The property may have the following liens and still remain eligible for assistance:
i) A code enforcement lien that has been abated or that will be abated through the use of
rehabilitation funds.
ii) A down payment assistance lien
iii) An affordable housing density bonus agreement
iv) Impact fee deferrals
(1) Note: This listing is not meant to be all- inclusive of all possible types of liens. The
Department will proceed with awards, unless the prohibitions noted above have been
violated.
g) The properties assisted through the Owner- Occupied Rehabilitation Program must have a
homestead exemption through the Collier County Property Appraiser's Office.
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EXHIBIT A
i) Each homeowner shall be sent a letter from the Department notifying them whether they meet
the minimum eligibility criteria established herein.
ii) In cases where a homeowner is determined to be ineligible, the reasons for this determination
shall beset forth in the notification letter to the participant(s).
(1) Any such negative determination of eligibility shall be mailed to the homeowner within
thirty days from such determination.
(2) Homeowners who have been determined to be ineligible shall be given the opportunity to
correct or explain in greater detail any information that resulted in, or affected the negative
eligibility determination made by the Department.
(3) The Department director or his/her designee shall have the authority to make a final
determination regarding a homeowner's compliance with the requirements for third party
verification.
(4) The Department director or his/her designee shall have the final decision - making authority
regarding a determination of eligibility or non - eligibility for participation in the Collier
County Owner Occupied Rehabilitation Program.
(5) Such determination shall be kept as a permanent part of the homeowner's program file.
h) Determination of corrective actions may be conducted prior to an applicant's receiving a final
determination of eligibility from Department.
i) Refusal by a homeowner to provide information to the Department regarding sources of income and
assets shall be considered sufficient grounds for a negative determination of program eligibility.
Homeowner Contractual Relationshin with County
1) Prior to construction beginning, the homeowner(s) must execute a second mortgage and promissory note for
the maximum amount of assistance which will be modified after final completion of work to unit to reflect
the actual amount of funds expended.
a) The secondary mortgage must be executed on the second mortgage document or on a substantially
similar document that has been approved by the Collier County Attorney Office.
b) Lenders may include, but not be limited to, Collier County Board of County Commissioners or any
registered financial institution operating under the Laws of Florida in Collier County, Florida.
c) The promissory note and the second mortgage shall set forth the obligations of the borrower(s),
lender(s), mortgagor(s), and mortgagee(s) as approved by the County Attorney's Office.
d) Mortgage dollar amount(s) shall be limited by and shall not exceed:
i) Program guidelines as established by program grantors;
ii) Bids for rehabilitation services as submitted by participating contractors.
e) The second mortgage shall be recorded with the office of the Collier County Clerk of Courts upon
closing of the rehabilitation loan with the Department and the homeowner.
f) Upon closing, the Department will cover the costs of recordation of the mortgage instrument with the
Collier County Clerk of Courts and documentary stamp tax.
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EXHIBIT A
g) No final payment or disbursement of loan funds will be made or processed for the contractor until the
Department receives a certified copy of the recorded second mortgage document.
h) A copy of the second mortgage shall be maintained as part of the permanent program file for each
homeowner(s) making application to the Collier County Owner Occupied Rehabilitation Program.
2) Homeowner(s) is /are responsible for reporting any change of income to the Department within 30 days of
any change so that closing of an owner occupied rehabilitation loan is not unduly delayed.
a) Changes in individual, household, and /or family income shall require that "applicant income
certification" be completed and recertified by homeowner(s). The Department shall verify all income
certification and re- certifications using criteria established by the Department and as may be amended
from time to time to reflect current loan and qualification standards.
3) Third party verification shall be completed prior to closing an owner occupied rehabilitation loan and
executing the second mortgage and the promissory note.
4) Based on funding availability, certification of income and property eligibility, clients will be issued an
award letter. The letter, at a minimum, will state the amount of the assistance, the terms of the assistance
and contact information for Department staff and/or County representative /designee.
5) A copy of the promissory note shall be maintained as part of the permanent program file for each
homeowner accepting funds for the Collier County Owner Occupied Rehabilitation Program.
6) Homeowner(s) must execute the Owner Occupied rehabilitation program performance program document.
7) The performance agreement sets forth the obligations of the homeowner with regard to the facts and
purposes of the program which includes, but is not limited to:
a) That homeowner understands the conditions of the loan, including program guidelines, rules, and
restrictions;
b) That benefits are not transferable;
c) That eligible dwelling units be occupied by the homeowner prior to and after completion of
rehabilitation work to the dwelling unit;
d) That the eligible dwelling unit must comply with the requirements of the Florida Building Code;
e) No homeowner, co -owner or relative of an owner or co -owner shall serve as a contractor or sub-
contractor for the rehabilitation of the subject property, nor shall an owner, co- owner, or relative receive
any compensation for their labor with any program funds:
f) A relative of a homeowner or co -owner shall be defined in this instance as an immediate family member
to include mother, father, brother, sister, aunt, uncle, and cousin or a family member by marriage, to
include mother -in -law, father -in -law, brother -in -law, and sister -in -law.
g) That all work performed by a contractor will be in accordance with the inspection report prepared by
Collier County and /or its representative /designee and that no changes to bid work will be paid for with
loan funds where there has not been express written prior approval by the Department director or his/her
designee on the form entitled "Owner Occupied Rehabilitation Program Change Order."
h) That access to the property and dwelling unit will be provided to County and/or its
representative /designee conducting inspections to determine interim progress and /or completion of work
for any or all rehabilitation work performed with funds from this program.
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i) That contractor is responsible for acquiring any and all permits and approvals to perform work under
this program and must provide evidence of permits where requested, by County and/or its
representative /designee, including but not limited to inspectors.
j) That payment for any work performed prior to execution of the second mortgage, promissory note, or
other approved instrument, including but not limited to, an official notice to proceed, shall not be the
responsibility of the County
k) Liability for payment for any work performed by the contractor which does not conform to the work
write -up where express written approval has not been given by the Department shall be the sole
responsibility of contractor.
1) Funds will be secured with a recorded fifteen (15), zero interest, deferred subordinate mortgage as
further identified in the SHIP LHAP on the property in the amount of the subsidy used in the project. If
all conditions of the loan are met, one -third of the loan will be forgiven in five year increments so that at
the end of the fifteenth year the loan is forgiven. Monthly payments are not required.
m) That the homeowner shall occupy the rehabilitated residential unit as the primary residence until a
satisfaction of mortgage for a period of 15 years or the terms of the second mortgage has been fulfilled,
whichever comes first. If the homeowner does not fulfill the obligations identified, they shall be in
default of this performance agreement, the required second mortgage, and the promissory note and
repayment of the balance of the second mortgage shall become due and payable immediately.
n) That the maximum amount of the loan shall be the actual amount paid to the contractor, or $30,000.00,
Whichever is less. The Department director may obtain approval of the Board of County Commissioners
on a case by case basis for subsidies above the established levels to accommodate a special needs
housing applicant or other situation in which it is determined that the assistance is necessary and/or not
evident at time of bid.
8) Historically Significant Properties:
a) Improvements must be consistent with those approved by the Florida Department of State in accordance
with the most current revision of "Secretary of the Interior's Standards for Rehabilitation and Guidelines
for Rehabilitation of Historic Buildings," and
b) Improvements must comply with the Collier County Historic /Archaeological Preservation Ordinance,
Ordinance No. 91 -70.
Determination of Rehabilitation Needed.
1) County and/or Representative/Designee Initial Inspection and Initial Work Write -Up.
a) Collier County and/or its representative /designee will conduct and complete the initial inspection of a
dwelling unit under this program no later than 30 days of notification of a homeowner's eligibility in the
Collier County Owner - Occupied Rehabilitation Program by the Department. Should additional time be
needed to initiate the inspection, documentation must be included in the file justifying the waiver of
time.
i) Initial inspection will determine any deficiencies.
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EXHIBIT A
ii) Collier County and/or its representative /designee will document the results of the initial inspection
on an inspection form.
iii) The inspection report shall be maintained as part of the permanent program file for each homeowner
making application to the Collier County Owner - Occupied Rehabilitation Program.
iv) Collier County will, at its' option, obtain an independent validation of the inspection, work scope
and prioritization to include an independent cost analysis, and then shall identify and prioritize the
rehabilitation scope on the "inspection report" completed for each dwelling unit so that rehabilitation
services can be directed at elimination of any pressing and immediate safety and/or health concern.
This will be referred to as the basis for the bid specifications; or work write -up.
v) Health and safety housing code violations shall be given priority by the County and/or
representative /designee over any cosmetic rehabilitation work during inspection, bid preparation,
and provision of rehabilitation services.
vi) It shall be the responsibility of the County and/or its representative /designee to determine and
prioritize rehabilitation services beyond immediate health and/or safety concerns which are
identified and prioritized by the inspection. The County may seek an independent validation of the
need and cost for any such items.
b) Bid specification development.
i) County and/or its representative /designee shall develop a work write up and specifications for the
project that details the quality and quantity of material to be installed in the property. The work write
up will provide details of how the work is to be preformed, quality of products to be installed and
installation methods.
ii) The County and /or its representative /designee shall develop a cost estimate for the project. The
County may seek an independent validation of the cost estimates prepared by the
representative /designee. The work write- up and cost estimates will be submitted to the County
and/or its representative /designee for review and approval prior to the project sent out to bid.
iii) Any such rehabilitation work that may go beyond the minimum requirements of the Florida Building
Code shall be documented and noted on the work write -up form by the inspector.
iv) The completed Collier County Owner- Occupied Rehabilitation Program bid specifications will serve
as the basis for bids from contractors which will address documented housing code deficiencies of
the eligible dwelling unit and any other work that may need to be completed to protect the health and
safety of residents and/or the integrity of the dwelling unit.
c) The contractor shall document estimated material requirements and unit labor
i) Costs for installation of materials on the bid specification document.
ii) Once approved by the County, a copy of the signed, completed bid specs will be provided to the
homeowner within a reasonable period of time after the completion of the inspection. The
homeowner will sign the bid specification document as an indication of awareness.
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d) If the County is operating the program through a representative or designee, the County will issue a
Notice to Proceed to that entity when all approvals have been obtained on the bid specification
document, to allow the bid process to proceed.
e) Bid Process
i) The County and/or its representative /designee will solicit bids proposal from local contractors for
any upcoming projects. This solicitation will include the date, time and location of the mandatory
contractor walk - through meeting for each project.
ii) The Bid Proposal will list, in detail, all specifications of materials to be used and the scope of work
to be performed. This will ensure that contractors are bidding based on the use of similar or like
materials and scope of work.
iii) A Mandatory Walk - Through Meeting will be held to view the property, ask questions and discuss
project details with the homeowner(s) and the County and/or its representative /designee relating to
the scope of work in the bid documents. Changes, additions, deletions and refinement of work details
or the scope may be made during this walk through. This is the first opportunity for the Contractor to
view the property. The walk - through will start promptly at the time specified. Contractors may not
begin to inspect the home or construction site before the County and/or its representative /designee
arrives and the walk - through officially starts. Contractors are required to sign in the official
attendance sheet. Contractors who do not sign the official attendance sheet will not be eligible for
bid selection on the project. Changes to bid specifications will be reviewed at the end of the walk -
through to ensure all Contractors are aware of any changes discussed during the walk - through. If
changes are made to the original bid specification, Contractors will receive revised bid documents
via electronic mail prior to the bid opening date. Contractors must use the bid work write up form
provided in the bid documents to submit the bid. Once the work is awarded, no changes may be
made to the work write -up except in the event of unforeseen circumstances as determined by the
County and/or its representative /designee or unless a change in the scope of work is required by the
County Building Department. Failure to bid according to the final bid specifications may be just
cause for disqualification of the Contractor's bid.
iv) The Bid Submittal must be submitted on the official bid specification document form provided in the
bid documents. Each Contractor shall provide line item prices for each item specified on the work
write -up and overhead should be added at the end.
v) All prices on the bid specification document must be written in ink. Signatures must also be in ink. If
a mistake is made on the bid, the change must be initialed by the Contractor prior to submitting the
bid. It is the contractor's responsibility to remain informed regarding permit fees, impact fees,
material costs and other requirements that might increase the cost of work. Once a bid is submitted,
the Contractor is bound to the price that is stated on the submitted proposal.
vi) For model or materials not specified, prices should match the home's existing models and materials
in quality and style. If a specific model is specified, the Contractor will be expected to install that
model or product number. A Contractor cannot deviate from the product specified without written
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authorization from the County and/or its representative /designee. All questions related to the job
specifications must be cleared prior to submission of bid by contacting the County and/or its
representative /designee.
vii) All bids must be in a sealed envelope. The Contractor/Bidder's name and the bid number must be
clearly written on the front of the sealed envelope. Completed bids must be delivered to the County
and/or its representative /designee on or before the scheduled bid date and specified time. Late bid
responses will not be accepted.
Contractor selection.
Solicitation of contractors by County and /or its representative /designee.
1) The County and/or its representative /designee will solicit bids from contractors and/or subcontractors.
2) The County and/or its representative /designee will review the bids to ensure that all mandatory work is
included; that it conforms to program specifications and that the cost is reasonable for the project by
reviewing it against an independent cost estimate. Estimates that are unreasonable, inaccurate, contain
incorrect totals, are unsigned, or submitted in pencil may be rejected at the option of the County and /or
its representative /designee. The following criteria will be used to determine the winning bid:
a) The bid is the lowest responsible, responsive bid;
b) All required contractor paperwork and licenses
c) Current certificates of insurance with coverage for:
d) Current liability insurance;
e) Current workmen's compensation;
f) Current business auto liability.
3) The contractor is an independent contractor and shall not be deemed an agent, employee or partner of
the county. In addition, no owner, co -owner or relative of an owner or co -owner shall serve as a
contractor or sub- contractor for the rehabilitation of the subject property, nor shall an owner -, co -owner
or relative receive any compensation for their labor with program funds. A relative of a homeowner or
co -owner shall be defined in this instance as an immediate family member to include mother, father,
brother, sister, aunt, uncle and cousin or family member by marriage, to include mother -in -law, father -
in -law, brother -in -law and sister -in -law.
4) The County will approve the final selection, and issue a Notice to Proceed to the representative or
designee.
Administration of residential rehabilitation.
1) A copy of the bid document submitted by the entity who is awarded the contract for an individual dwelling
unit shall be provided to the Department and to the county clerk finance Department at time of
reimbursement request to ensure that payments made to contractors reflect costs included in the bid.
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2) Notice to Proceed. Contractors are not authorized to begin construction until they receive a Notice to
Proceed from the Department and/or its representative /designee. The contractor will receive a Notice to
Proceed when:
a) The homeowner has executed and the Department has recorded the second mortgage and promissory
note.
b) The homeowner has signed a contract with Collier County or its designee/representative.
3) The official Notice to Proceed will be issued in a formal letter from the Department and/or
representative/designee
4) The contractor's award letter shall be maintained as part of the permanent program file for each homeowner
making application to the Collier County Owner Occupied Rehabilitation Program.
5) No payment or advance of loan funds will be made or processed for the program participant/homeowner or
the contractor until the Department receives a copy of the promissory note from the homeowner.
6) A copy of the promissory note shall be maintained as part of the permanent program file for each
homeowner making application to the Collier County Owner Occupied Rehabilitation Program.
7) Notice of Commencement.
a) Following the Notice to Proceed, a Notice of Commencement must be filed by contractor with the
Collier County Clerk prior to commencement of construction of the project pursuant to the requirements
of Chapter 713, Florida Statutes, for each dwelling unit receiving rehabilitation services under the
Collier County Owner - Occupied Rehabilitation Program.
b) A certified copy or affidavit attesting to the recorded Notice of Commencement must be posted at the
jobsite. The notice, at a minimum, should contain the following details: property owner, lender
information, jobsite address, contractors, etc. This document will protect the property owner's title to the
property.
c) Collier County Board of County Commissioners shall be named on the notice of commencement as
"lender."
d) The Department shall be named on the Notice of Commencement as "persons within the State of Florida
designated by owner upon whom notices or other documents may be served" as provided by F.S. §
713.13(1)(a)7.
1) Monitoring for rehabilitation/emergency home repair.
a) All work performed by contractor(s) and its subcontractor(s) shall be in accordance with:
i) The inspection report completed and submitted by Collier County and /or its representative /designee ,
ii) Bid documents submitted by the contractor on the bid specification and any supplemental plans
submitted in conjunction with this form.
iii) All work performed by any contractor(s) and their subcontractor(s) must conform to the local and
state laws, including:
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(1) Florida Building Codes and Collier County Housing Code, Ordinance No. 89 -06, as amended;
and
(2) Collier County Residential Rehabilitation Standards, as amended
1) Required documentation for rehabilitation/emergency home repair. The following documents are required of
all eligible households for repair loans:
a) Rehabilitation/emergency home repair bid specification. All work that is to be performed must be listed
on this form detailing labor and material costs. This form must be delivered to a representative of the
Department prior to the commencement of any repair work. A signed copy will be provided to the owner
and to the finance Departments. Loans granted under this program, but are limited to a maximum of
$30,000.00 per household.
b) Final inspection. A copy of the signed final inspection will be maintained in the owner's permanent file.
A copy of the final inspection will be provided to the Department of finance, along with the final
payment request.
c) Promissory note. This note will be used specifically for the loans granted under the owner occupied
rehabilitation program. A copy of the note will be maintained in the owner's permanent file, and will
recorded within the County Clerk of the Courts files Department. The original, executed note will be
kept on file in the Department.
d) Second mortgage. The second mortgage will be used to secure the promissory Note and will be recorded
by the Clerk of the Circuit Court for Collier County. The original, recorded second mortgage will be
kept on file in the Department. Copies will also be made available to the owner. All fees associated with
the recording of this document will be paid by the Department.
e) Waiver of lien. Upon completion of the repair work, the contractor will be required to execute a waiver
of lien. The final payment will not be disbursed until the Department receives the waiver of lien, a
satisfactory inspection report and the itemized contractor's invoice.
Inspeetion(s) of rehabilitation work.
Interim inspections.
1) Contractors are responsible for arranging interim inspections with appropriate County or City Departments.
2) All work performed under the Collier County Owner Occupied Rehabilitation Program must conform to all
state, county, and/or city code requirements to be reimbursed under this program.
3) A scheduled inspection is required prior to receiving a draw request. The County and/or its
representative /designee will schedule an inspection after receiving and reviewing the request for payment.
No payment will be processed without completing a successful inspection with the County and/or its
representative /designee.
4) Copies of inspection forms shall be signed by each individual performing an inspection and a copy of the
completed, signed inspection form will be provided to the Department within three working days of
completing each inspection.
5) Each inspection form shall be maintained as a permanent part of each homeowner's program file.
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Final inspections.
6/24/2014 16.D.3.
I ) Contractors are responsible for arranging final inspections with appropriate County or City inspection
Departments.
2) Copies of inspection forms shall be signed by each individual performing an inspection and a copy of the
completed, signed inspection form will be provided to the Department prior to the project's completion and
final inspection.
3) Each inspection form shall be maintained as a permanent part of each program participant's file.
4) The County and/or its representative /designee shall be vested with the authority to make a final
determination of conformance to code requirements for all code related rehabilitation work performed under
this program.
5) All rehabilitation work performed under the Collier County Owner Occupied Rehabilitation Program must
conform to the requirements of the Collier County Department Rehabilitation Standards as amended if
applicable, as well as general industry work quality standards for such work, in order to pass inspection(s)
and be reimbursed under this program.
6) The Department director or his/her designee shall be vested with the authority to make a final determination
of work completeness and work quality in the event that there is disagreement among any of the parties.
7) Such inspections may address, but are not limited to:
a) Inspections prior to mediation between the homeowner and contractor, when needed;
b) Inspections to determine extent of work progress prior to approval for final payment to contractor;
c) Inspection to determine if all receipted, purchased materials have been installed;
d) Inspection to obtain homeowner final sign-off and approval for final payment to contractor.
Method of payment for rehabilitation work performed.
Performance bonds.
1) No performance bond shall be required to be posted by a contractor selected under this program.
Change Orders.
1) No alteration of materials or labor described in the original work order shall take place unless in writing and
mutually agreed to by the County and /or its representative /designee. All changes must be submitted on a
Change Order Form signed and dated by the County and /or its representative /designee. Any such changes
are subject to the terms of the contract. Contractors must provide before and after pictures of the work
associated and a price cost analysis prepared with change order request. Change orders must be submitted
and approved prior to the final draw request and will only be considered in the case of circumstances
unforeseen at the time of the walk - through or for additional work requested by the Building Department.
The County and/or its representative /designee reserve the right to deny any change order request.
Method of payment for work performed.
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EXHIBIT A
1) Upon final inspection, the transfer of all warranties to the homeowner, releases, as identified by the County
and /or its representative /designee, the follow process shall be followed:
a) One -time payment for services:
i) Contractor submits a final invoice to the Department and/or its representative /designee when all the
work is completed.
ii) Payment to contractor is contingent on submission of the final inspection report by the County
and/or its representative /designee to the Department and final inspection by appropriate personnel,
and must be accompanied by:
(1) Affidavit from contractor stating that subcontractors and material suppliers have been paid for
the particular job for which the contractor is submitting a request for payment to Collier County.
(2) Final inspections by the Department will not be conducted until such time that final, notarized
originals of waiver of lien have been submitted to Department for the contractor,
subcontractor(s) and material vendors performing rehabilitation work on the dwelling unit to be
inspected.
iii) In the alternative, upon submission of invoices or other documentation from contractor and a written
notarized statement from contractor that materials have been supplied and services rendered which
are satisfactory to contractor, payment shall be processed.
iv) Final inspection of all rehabilitation work shall be conducted by the Department and /or its
representative /designee and personnel from applicable county /city Departments
v) The homeowner(s), and the Department director or his /her designee complete and sign form entitled
"disbursement authorization."
vi) Collier County Clerk's Finance Department shall process payment to the County and /or its
representative /designee and other contractual agreements approved by the Board of County
Commissioners for the contract amount and for any additional work authorized and documented on
the change order by the Department director or his/her designee,
vii) Contractor is responsible for providing payment to any and all sub - contractors performing
rehabilitation work on dwelling units and property.
(b) Payment Reduction
i. In accordance with its project contracts, the County and/or its representative /designee reserve
the right to decline payment or reduce the amount of a draw to such an amount as is
necessary to protect the homeowner from loss or to recover the cost incurred to correct or
complete the specified work for reasons including, but not limited to:
a. Defective work not corrected
b. Third -party claims filed or with reasonable evidence indicating probably filing of
such claims
c. Failure of the contractor to make payments to subcontractors, laborers /workers or
material suppliers
d. The amount of work completed is not enough to constitute a draw
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(c) Suspensions and Disqual fications
i) The County and /or its representative /designee may implement this section. Contractors may
be suspended or disqualified for any of the following reasons:
1) Self - imposed: A contractor may disqualify him/herself before contract signing for
conflicting work contracts or personal hardship
2) Lack of Participation: A contractor that does not participate or respond to an invitation to
bid within a twelve month period will be placed on Inactive status and will no longer be
sent bid information. Inactive contractors must reapply and be accepted in order to begin
receiving bids again.
3) Insurance Violations: If at any time a contractor fails to have required insurance, he /she
will be automatically suspended until proof of insurance is provided. The contractor must
have insurance at all times. Changes in coverage must be reported in writing to the
County and/or its representative /designee within five working days of such change,
including renewals.
4) Business License Violations: Any contractor who has a license suspended, revoked,
rejected or inactivated will be automatically disqualified. All license renewals must be
current and a copy provided to the County and/or its representative /designee
5) Failure to Honor Warranties: Any contractor who fails to honor a warranty from a
previous contract will be barred from future bidding for one year and must reimburse the
County and/or its representative /designee for the cost of any work performed by another
to correct the warranty work.
6) Default: If a contractor defaults or does not complete an assigned project, he/she will be
disqualified indefinitely from participating in County housing programs.
7) Willful Misconduct: Willful misconduct by contractor, employees or subcontractors
while engaged in a project will not be tolerated. The contractor may be disqualified from
the program for behavior such as, but not limited to, theft, lewd or lascivious acts, foul
language, public intoxication, and illegal drug use, willful destruction of the
homeowner's property or abusive behavior towards the homeowner or County staff.
8) Contractor Negligence: Failure to adhere to building codes, construction industry
standards, contract specifications and material requirements.
9) Payment Delinquency: Failure to pay subcontractor or material suppliers.
10) Kickbacks/Price Fixing: Accepting kickbacks or price fixing by or between contractors,
its employees, officers, owners, agents, partners, representatives or any other affiliates.
11) Brokerage of Work: Brokering work to another licensed or unlicensed contractor.
Anyone brokering work or receiving a brokered contract will be immediately suspended
and possibly be disqualified indefinitely from participating in any work program through
the County.
(d) Lien Waivers
i) The contractor shall protect, defend and indemnify the County and/or its
representative /designee and homeowner from all claims of unpaid work labor or materials.
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The contractor must sign a Release of Lien prior to receiving any payments. This will be
required of the contractor at every draw request; not exceptions will be made. It is the
contractor's responsibility to obtain Release of Liens from its subcontractors, material
suppliers and any other affiliates associated with the project.
ii) Program participant files.
(1) Copies of every form and copies of all receipts used in the contractor payment process
shall be kept as a part of each individual homeowner's program file.
Disaster waiver.
1) In the event of a natural disaster, program guidelines regarding pre - qualification of participating
contractors may be waived by the Department in order to expedite needed repairs and improvement to
damaged properties, with the approval of the Department.
2) Any dollar expenditure cap in effect for any state or federal program that provides funds used in the Collier
County Owner Occupied Program may be waived or increased where the governor of the State of Florida
or the executive officer of any state or federal agency issues an executive order, or other such directive,
waiving or increasing said cap.
3) All Collier County Owner Occupied Rehabilitation Program requirements for documentation by
contractors of material purchases and estimated labor costs shall remain in effect.
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