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Agenda 07/08/2014 Item #17E7/8/2014 17.E. EXECUTIVE SUMMARY Recommendation to adopt an Ordinance repealing and replacing Ordinance 94 -39, as amended, known as the Collier County Residential Rehabilitation Program, to revise the program to be known as the Collier County Owner- Occupied Rehabilitation Program. 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. 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 prepares a three -year Local Housing Assistance Plan (LHAP). The LHAP develops housing incentive strategies to meet the housing needs of the very low —, low- and moderate - income households in Collier County and the City of Naples. 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 16D 1). The Board approved permission to advertise on June 24, 2014 (Agenda item 16D3). The required notice for the ordinance change was published in the Naples Daily News on June 25, 2014. The advertisement identified a 10 -day public comment period from June 25, 2014 to July 5, 2014. At the time of agenda publication, no comments have been received. The Owner- Occupied Rehabilitation Program will focus on necessary repairs to correct code violations or emergency repairs that impact the homeowner's health, safety and welfare. Some examples of eligible home repairs could be, but not limited to: roof repair /replacement, well repair /replacement, electrical, plumbing, heating and air conditioning (only with a physician's certificate), septic repair /replacement, window repair /replacement and door repair /replacement. 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 Packet Page -2628- 7/8/2014 17.E. • Ordinance allows further changes to amended by resolution Since advertising staff has made changes to Exhibit A. Exhibit A, as presented, is substantially identical to that advertised. Changes made are only to make the document internally consistent. 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 adopt an Ordinance repealing and replacing Ordinance 94 -39, as amended, known as the Collier County Residential Rehabilitation Program, to revise the program to be known as the Collier County Owner - Occupied Rehabilitation Program. Prepared by: Elly Soto McKuen, Housing and Grant Coordinator; Housing, Human and Veteran Services Packet Page -2629- COLLIER COUNTY Board of County Commissioners Item Number: 17.17.E. 7/8/2014 17.E. Item Summary: Recommendation to adopt an Ordinance repealing and replacing Ordinance 94 -39, as amended, known as the Collier County Residential Rehabilitation Program, to revise the program to be known as the Collier County Owner - Occupied Rehabilitation Program. Meeting Date: 7/8/2014 Prepared By Name: McKuenElly Title: Grants Coordinator, Housing, Human & Veteran Services 6/14/2014 11:52:56 AM Submitted by Title: Grants Coordinator, Housing, Human & Veteran Services Name: McKuenElly 6/14/2014 11:52:57 AM Approved By Name: GrantKimberley Title: Director - Housing, Human and Veteran S, Housing, Human & Veteran Services Date: 6/17/2014 5:48:44 PM Name: SonntagKristi Title: Manager - Federal /State Grants Operation, Housing, Human & Veteran Services Date: 6/18/2014 9:59:53 AM Name: KushiEdmond Title: Accountant, Housing, Human & Veteran Services Date: 6/18/2014 11:17:22 AM Name: Bendisa Marku Title: Supervisor - Accounting, Housing, Human & Veteran Services Date: 6/18/2014 1:37:07 PM Packet Page -2630- 7/8/2014 17.E. Name: TownsendAmanda Title: Director - Operations Support, Public Services Division Date: 6/19/2014 12:47:38 PM Name: AlonsoHailey Title: Operations Analyst, Public Services Division Date: 6/19/2014 3:24:01 PM Name: RobinsonErica Title: Accountant, Senior, Grants Management Office Date: 6/23/2014 12:34:43 PM Name: CarnellSteve Title: Administrator - Public Services, Public Services Division Date: 6/24/2014 10:02:26 AM Name: BelpedioJennifer Title: Assistant County Attorney, CAO General Services Date: 6/24/2014 1:10:39 PM Name: FinnEd Title: Management/Budget Analyst, Senior, Transportation Engineering & Construction Management Date: 6/25/2014 10:22:23 AM Name: StanleyTherese Title: Management/Budget Analyst, Senior, Grants Management Office Date: 6/25/2014 2:59:41 PM Name: KlatzkowJeff Title: County Attorney, Date: 6/26/2014 5:08:20 PM Name: OchsLeo Title: County Manager, County Managers Office Date: 6/30/2014 1:46:54 PM Packet Page -2631- 7/8/2014 17.E. 240 ID Wednesday, June 25,2014 ]b NAPLES DAILY NEWS NOTICE OF INTENT TO CONSIDER ORDINANCE Notice is hereby given that on July 8_2014 in the Board of County Commissioners Meeting Room, 3rd Floor, Building "F ", Collier County Government Center, 3299 Tamiami Trail East, Naples, Florida, the Collier County Board of County Commissioners will consider the proposed ordinance. The meeting will commence at 9:00 A.M. The title of the proposed Ordinance is as follows: 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. Copies of the proposed Ordinance are on file with the Clerk to the Board and are available for inspection. All interested parties are invited to attend and be heard. NOTE: All persons wishing to speak on any agenda item must register with the County administrator prior to presentation Of .the agenda item to be addressed. Individual speakers will be limited to 3 minutes on any item: The selection of an individual to speak on behalf of an organization or group is encouraged. if recognized by the Chairman, a spokesperson for a group or organization may be allotted 10 minutes to speak on an item. Persons wishing to have written or graphic materials included in the Board agenda packets must submit said material a minimum of 3 weeks prior to the respective public hearing. In any case, written materials intended to be considered by the Board shall be submitted to the appropriate County staff a minimum of seven days prior to the -public hearing. All material used in presentations before the Board will become a permanent part of the record. Any person who decides to appeal a decision of the Board will need a record of the proceedings pertaining thereto and therefore, may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is based. , BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA r TOM HENNING, CHAIRMAN DWIGHT E. BROCK, CLERK By: Martha Vergara, Deputy Clerk (SEAL) June_21 ;2014 No .2029001 tl Packet Page -2632- 7/8/2014 17.E. 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. Pagel of 3 Packet Page -2633- j 7/8/2014 17.E. 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 Packet Page -2634- IN 7/8/2014 17.E. 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 By: By. Deputy Clerk TOM HENNING, CHAIRMAN Approved as to form and legality: Jennifer A. Belpedio �q' Assistant County Attorney \1 (*1� Page 3 of 3 a Packet Page -2635- EXHIBIT A OWNER - OCCUPIED REHABILITATION PROGRAM Program Description. 7/8/2014 17.E. 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 i$ 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 (HHVS), 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, t6 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. '1 0 Packet Page -2636- 7/8/2014 17.E. 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 dater 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. Packet Page -2637- 7/8/2014 17.E. 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 120U' 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. 3 Packet Page -2638- 7/8/2014 17.E. 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. a 4., Packet Page -2639- 7/8/2014 17.E. EXHIBIT A (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. 5 Packet Page -2640- 7/8/2014 17. E. EXH I BIT 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 be set 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 Relationship 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. i) 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. 6 U� Packet Page -2641- 7/8/2014 17.E. 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. S) 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. 7 ve Packet Page -2642- 7/8/2014 17.E. EXHIBIT A 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) year, 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. b Packet Page -2643- .; 7/8/2014 17.E. 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. 9 J Packet Page -2644- 7/8/2014 17.E. EXHIBIT A 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 fast 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 to 0 Packet Page -2645- 7/8/2014 17.E. EXHIBIT A 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. 11 lC: Packet Page -2646- 7/8/2014 17.E. EXHIBIT A 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 will be made or processed for 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: Packet Page -2647- ' 12 NO 7/8/2014 17.E. EXHIBIT A (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. Inspections) 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 X11 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. 13 y Packet Page -2648- 7/8/2014 17. E. EXHIBIT A Final inspections. 1) 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. Packet Page -2649- 14 7/8/2014 17.E. EXH I BIT 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 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 final payment 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 15 Packet Page -2650- 7/8/2014 17.E. EXHIBIT A (c) Suspensions and Disqual y cations 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. 16 Packet Page -2651- 7/8/2014 17.E. EXHIBIT A The contractor must sign a Release of Lien prior to receiving any payments. This will be required of the contractor at every draw request; no 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 and subcontractor 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. 17 Packet Page -2652- 9 OWNER- OCCUPIED REHABILITATION PROGRAM Program Description. 7/8/2014 17.E. 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 (HHVS), 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. iv) Chapter 420.907 1, 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 Packet Page -2653- 7/8/2014 17.E. 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 HUD /FHFC. 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. 2 Packet Page -2654- 7/8/2014 17.E. 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 120a' 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. 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. 3 Packet Page -2655- 7/8/2014 17.E. 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. (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. 4 Packet Page -2656- 7/8/2014 17.E. 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. 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 be set 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. 5 Packet Page -2657- 7/8/2014 17.E. (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 Relationship 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. 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. Packet Page -2658- 7/8/2014 17.E. 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. 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) year, 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. 7 Packet Page -2659- 7/8/2014 17.E. 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. 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 E. Packet Page -2660- 7/8/2014 17.E. 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. 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 Packet Page -2661- 7/8/2014 17.E. 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 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 10 Packet Page -2662- 7/8/2014 17.E. 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. 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 will be made or processed for 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. Packet Page -2663- 11 7/8/2014 17.E. 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: (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 12 Packet Page -2664- 7/8/2014 17.E. 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. Inspection(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. Final inspections. 1) 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; 13 Packet Page -2665- 7/8/2014 17.E. 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. 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 14 Packet Page -2666- 7/8/2014 17.E. 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 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 final payment 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 (c) Suspensions and Disqualifications 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 15 Packet Page -2667- 7/8/2014 17.E. 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. The contractor must sign a Release of Lien prior to receiving any payments. This will be required of the contractor at every draw request; no 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 and subcontractor 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. 16 Packet Page -2668-