Agenda 04/22-23/2008 Item #10F
Agenda Item No. 10F
April 22, 200S
Page 1 of 19
EXECUTIVE SUMMARY
Recommendation to approve an Administrative Plan for the distribution of funds for the Collier
County Single Family Rehabilitation Program funded by the Florida Department of
Community Affairs Disaster Recovery Initiative grant program
OBJECTIVE: To approve an Administrative Plan for the Disaster Recovery Initiative
funds allocated to Collier County for Single Family Rehabilitation/Replacement. The
goal of the program is to rehabilitate or replace hurricane impacted homes in Collier
County as well as hurricane harden homes for future storms. This Administrative Plan
will be utilized as a guide for expending grant funds and identifying responsibilities for
Rehabilitation and replacement through the Disaster Recovery Initiative Program in
Collier County
CONSIDERATION: In May of 2007 the Collier County Board of Commissioners
approved a Disaster Recovery Initiative Grant Agreement between Collier County and
the Florida Department of Community Affairs (DCA) in the amount of $2,339,882. This
funding was created as a result of the impacts of Hurricane Wilma. A portion of this
grant was awarded to Collier County for single family Countywide
rehabilitation/replacement needed as a result of damage from Hurricane Wilma. Funds
may also be used to harden homes in preparation for future storms. In addition a second
round of funding of the DR! Grant is in the process of award in the amount of
$2,8]4,698.]5. A separate agenda item requests approval of this second round of funding.
It was requested by the DCA that we create an Administrative Plan for the Collier County
Disaster Recovery Initiative Countywide Rehabilitation Portion of the Grant funds. It is
proposed that the Collier County Board of Commissioners approve this administrative
plan to accommodate the expenditure of the grant funds.
Breakdown of Disaster Recovery Initiative Grant Funds
Grant Total Grant Administration Individual Countywide
Fund Projects Rehabilitation
With Non-profit Portion
On.!anlzations
DR! #1 $2,339,882.00 $70,] 96.00 $1,872.402.00 $397,284.00
DR! #2 $2,814,698.15 $84,440.94 $1,394,000.00 $1,336,257.2]
Total $5,] 54,580.] 5 $] 54,636.94 $3,266,402.00 $1,733,541.21
FISCAL IMPACT: Approval of this Administrative Plan will assist the Department of
Housing and Human Services administer the Countywide Rehabilitation portion of the
Grants in the amount of $397,284 from the first round of DR] funding and $],336,257.21
from the second round of DR! funds.
Agenda item No. 10F
April 22, 200S
Page 2 of 19
GROWTH MANAGEMENT IMPACT: Expending DR! Grant funds will benefit the
low-income residents of Collier County which is consistent with the Growth
Management Plan.
LEGAL CONSIDERATION: The DRI single family Rehabilitation/Replacement
Administration Plan has been reviewed and approved by the Collier County Attorney's
office.
RECOMMENDATION: That the Board of County Commissioners approve the
Administrative Plan for the distribution of funds for the Collier County Single Family
Rehabilitation Program funded by the Florida Department of Community Affairs Disaster
Recovery Initiative grant program.
Prepared by: Lisa Oien, Grants Support Specialist
Housing and Human Services Department
Page ] of 1
Agenda Item NO.1 OF
April 22, 200S
Page 3 of 19
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number:
Item Summary:
10F
Recommendation to approve an Administrative Plan for the distribution of funds for the
Collier County Single Family Rehabilitation Program funded by the Florida Department of
Community Affairs Disaster Recovery Initiative grant program. (Marcy Krumbine, Director,
Housing and Human Services)
Meeting Date:
4/22/20089:00:00 AM
Approved By
Marcy Krumbine
Director
Date
Public Services
Housing & Human SerVices
3/21120086:37 PM
Approved By
Marla Ramsey
Public Services Administrator
Date
Public Services
Public Services Admin.
3/25/200810:40 AM
Approved By
Jeff Klatzkow
Assistant County Attorney
Date
County Attorney
County Attorney Office
4/4/2008 1 :07 PM
Approved By
Sherry Pryor
Management & Budget Analyst
Date
County Manager's Office
Office of Management & Budget
414/20083:28 PM
Approved By
John A. Yonkosky
Director of the Office of Management
Date
County Manager's Office
Office of Management & Budget
4/7/2008 10:00 AM
Approved By
Leo E. Ochs, Jr.
Deputy County Manager
Date
Board of County
Commissioners
County Manager's Office
4/13120086;26 PM
file://C:\AgendaTest\Export\] 05-April%2022, %202008\] 0.%20COUNTY%20MANAGER... 4/16/2008
Collier County
Agenda Item NO.1 OF
April 22, 2008
Page 4 of 19
COLLIER COUNTY, FLORIDA
DISASTER RECOVERY INITIATIVE
COMMUNITY DEVELOPMENT BLOCK GRANT
SINGLE FAMILY REHAB/REPLACEMENT PROGRAM
ADMINISTRATIVE PLAN
FLORIDA DEPARTMENT OF COMMUNITY AFFAIRS
AGREEMENTS #07DB-3V-09-21-01-Z01 &. #OSDB-D3-09-21-01-ZZ3
PREPARED BY THE
COLLIER COUNTY HOUSING AND HUMAN SERVICES DEPARTMENT
PUBLIC SERVICES DIVISION
3050 NORTH HORSESHOE DRIVE SUITE 110
(239) 252-4663
Oisaster Recovery Initiative
March 2008
Collier County
Agenda Item No. 10F
April 22, 200S
Page 5 of 19
I. INTRODUCTION................................................................................................................................................ 3
II. HOUSING REHABILITATION OBJECTIVES AND POLICIES ............................................................... 3
A. Objectives ..................................................................................................................................................... 3
B. Rehabilitation Poiicies .................................................................................................................................. 3
C. Identification of U nits ................................................................................................................................... 4
D. Approval of Ranking, and Removal of Units from the Program .................................................................. 5
Ill. CONFLICT OF INTEREST ........................................................................................................................... 5
IV. HOUSING REHABILITATION FINANCING ............................................................................................. 6
A. Deferred Payment Loans (DPL) ...................................................................................................................6
B. Scope of Rehabilitation Assistance.............................................................................._...._nn....................... 7
V. QUALIFICATIONS ........................................................................................................................................ 7
A. Generat .......................................................................................................................................................... 7
B. Household Income ........................................................................................................................................7
VI.
A.
B.
VII.
A
B.
C.
D.
E.
F.
H.
VIII.
A.
B.
C.
D.
IX.
A.
B.
C.
X.
STRUCTURAL REQUlREMENTS................................................................................................................ 8
General.......................................................................................................................................................... 8
Structural Integrity ......................................................................................................................................... 9
PROCEDURES............................................................................................................................................ 9
Application and Inspection ........................................................................................................................... 9
B idding .........................,...................,......................................................................................................... 10
Contracting and Rehabilitatinn ................................................................................................................... 10
Inspections .................................................................................................................................................. 10
Change Orders ............................................................................................................................................ 10
Payment ...................................................................................................................................................... 11
Follow- U p ............................................................................................................ ....................................... 11
CLEARANCE/PERMANENT RELOCATION/DEMOLITION RELOCATION................................... II
Oeneral........................................................................................................................................................ 11
Clearance .................................................................................................................................................... 12
Permanent RelocationlDemoli tion Relocation ............................................................................................ 12
Differences.................................................................................................................................................. 12
CONTRA CTOR LISTING............................................................................................................................. 13
Recruiting ................................................................................................................................................... 13
Contractor Eligibility ........................... .......,............................................................................................... 13
Disqualification........................................................................................................................................... 14
RELOCATIONIDISPLACEMENT............................................................................................................... 14
Xl. APPEALS/COMPLAINTS ............................................................................................................................ 15
XII. PROGRAM INCOME................................................................................................................................ IS
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Agenda Item No. 10 F
April 22, 200S
Page 6 of 19
I. INTRODUCTION
This manual is a guide for operating the bousing rehabilitation/replacement related aspects of
tbe Collier County Community Disaster Recovery Initiative Development Block Grant
(DRJJCDBG) program. The responsibilities of Collier County, tbe homeowner, construction
contractor and tbe Housing Rehabilitation Specialist are specifically addressed in tbis manual.
Tbe major focus of this manual is on housing rehabilitation, demolition/clearance and
replacement of dwellings. Relocation of households is also covered to a limited extent.
The goal for the DRJJCDBG program is to rehabilitate hurricane impacted substandard units,
harden existing dwellings from future storms and to bring them up to a minimum acceptable
living standard. This standard is the HUD Section 8 Minimum Housing Quality Standards. This
goal will be achieved through the use of DRJJCDBG funds to contract for the rcquired
rehabilitation construction. The rehabilitation units to be assisted shall be owner-occupied.
II. HOUSING REHABILITATION OBJECTIVES AND POLICIES
A. Objectives
The objectives of the Collier County Housing Rehabilitation Program are:
]. To encourage the revitalization of hurricane impacted very low, low (50% AMI or
less) and moderate income (80% AMI or less) neighborhoods through a Housing
Rehabilitation Deferred Payment Loan (DPL) Program.
2. To remove unhealthy or ha2ardous conditions in hurricane impacted very low, low
and moderate income households.
3. To use DRJJCDBG rehabilitation grant funds as a catalyst to encourage residents of
very low, low and moderate income neighborhoods to improve their community.
4. To preserve existing housing stock, or replacement of substandard housing.
5. To enable hurricanc impacted very low, low and moderate income families to
rehabilitate their homes by providing financial and technical assistance to those
unable to obtain private financing.
6. To increase employment and training opportunities for local residents and minority
persons through the provision of funds for the rehabilitation of homes.
7. To make homes acccssible to elderly/handicapped occupants as may be required by
code, acccssibility requirements and as good judgment may dictate.
B. Rehabilitation Policies
It is the policy of tbe Collier County Rehabilitation Program to:
1. Assure that the Program is administered in strict conformance with the community
development and rehabilitation rules and all applicable local, state and federal
requirements (including equal opportunity, conflict of interest, etc.)
2. Treat all participating property owners, residents, and contractors fairly, with
sensitivity and respect for their needs, and in accordance with program rules.
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Agenda Item No. 10F
April 22, 200S
Page 7 of 19
3. Provide all program participants any reasonable assistance necessary to carry out the
objectives of the program, bearing in mind:
(a) Property owners hold the primary responsibility for maintaining their
property and personal finances,
(b) Contractors are primarily responsible for the quality of their work and
their obligations to suppliers, creditors, subcontractors and employees;
and
(c) Assistance provided must be authorized at the proper level.
4. Assure that no member of tbe Congress of the United States, or Collier County
Commission shall share in proceeds or benefits of DRI/CDBG funded rehabilitation
work.
5. Allow some flexibility in administering the program in order to meet the program's
goals and objectives of rehabilitating each addressed dwelling to attain HUD Section
8 Minimum Housing Quality Standards and the Florida Building Code. The Collier
County Board of County Commissioners may waive program rules only when the
result will be consistent with established goals and objectives, and applicable federal,
stale or local regulations.
6. Housing rehabilitation will be the first priority, with housing replacement being
addressed when program funds are available
C. Identification of Units
Housing Replacement will take place only on units approved by the Collier County Housing
and Human Services Department and in accordance with grant requirements established by the
State of Florida. Alternate units may be provided to replace any primary units that may become
ineligible. Collier County staff will solicit applications either from other housing assistance
providers that have knowledge of need within Collier County, by placing notices in public areas
throughout Collier County and/or by advertising in publicly circulated publications throughout
the grant period. Collier County will review applications received using the following selection
criteria:
]. Has the recipient previously been furnished assistance and if so, when and under what
circumstances? A former recipient cannot be assisted for five years and should not be
served again until all other eligible recipients have received assistance,
2. Number of persons in the family and the family income.
3. Type of construction (i.e., block, manufactured home, wood frame, etc.), state of
deterioration of the residence and estimated cost to rehabilitate as compared to ]) average
residence cost calculated in the application and 2) the value of the residence after
rehabilitation. Assistance for mobile or manufactured housing will be included in the
program, unless specifically prohibited by local or state regulations.
4. Location of the residence with reference to defined areas, i.e., floodplain, zoning,
incompatible use, etc.
5. Compatibility (consistency) of the proposed residence rehabilitation with the local
comprehensive plan and/or land development regulations.
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Agenda Item NO.1 OF
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Page S of 19
6. Is the recipient current on payments to the local government (i.e., garbage/trash bill,
utility bills, taxes, etc.) and mortgage/lien holders?
7. Recipients' willingness to maintain reasonable standard of care and maintenance to
protect and enhance the investment by meeting local nuisance, trash, and other
environmental or health codes.
8. Does the recipient have clear title to the property?
9. Is the stmcture more than 50 years old? The applicant shall indicate on the application
form whether to hislher knowledge the structure is older than 50 ycars old. If he/she
answers yes, or if other evidence suggests the structure is more than 50 years old, Collier
County must notify the State Burcau of Historic Preservation and receive written
approval for the rehabilitation. Property appraiser, tax records, or other government
agencies records will be researched to verify the age of the structure.
10. In addition to the above, the following priority ranking in Appendix A shall be strictly
adhered to in the selection of qualifying applicants.
II. This program will not assist in the rehabilitation or replacement of rental
housing structures.
D. Approval of Ranking, and Removal of Units from the Program
The Housing Rehabilitation Specialist and the Project Coordinator shall review and rank the
applications based on the criteria attached as Appendix A. Applications received shall be
considered on a first come, first served basis.
The Housing Rehabilitation Specialist or the Project Coordinator may remove a housing unit
from the program for a change in household income, approved selection criteria, or for not
complying with the minimum qualification procedures. If it is determined that it is necessary to
remove an applicant from the program, a certified letter will be sent to the applicant stating the
reasons for the removal. The applicant will have the right to appeal the decision as identified in
the Citizen Participation Plan.
III. CONFLICT OF INTEREST
Allhough addressed in other places in this Policy, adherence to mles and regulations on this
matter is mandatory. All applicants that may have a business or familial relationship with a
member of the Collier County Board of County Commissioners, employees of the Collier
County Board of County Commissioners, or participating construction contractors must fully
disclose this relationship on the Application and definitely before a construction contract is
executed. Collier County Department of Housing and Human Services covenants that no person
who presently exercises any functions or responsibilities in connection with the Disastcr
Recovery Initiative Rehabilitation Program has any personal financial interest or benefit, direct
or indirect, in the target areas or any parcels therein, which would conflict in any manner or
degree with the performance of this Program and that no person having any conflict of interest
shall be employed by or subcontracted by Collier County Housing and Human Services Disaster
Recovery Initiative Rehabilitation Program. Any conflict of interest shall be disclosed in writing.
In the event that a potcntial or possible conflict of interest is thought to exist, Collier County
Housing and Human Services will confer with the COllnty Attorney's office to determine
Disaster Recovery Initiative
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March 2008
Agenda Item No. 10F
April 22, 200S
Page 9 of 19
whether further action is necessary. All determinations on this issue will be in accordance with
24 c.P.R. Section 570.489.
N. HOUSING REHABILITATION FINANCING
The Housing Rehabilitation Program provides financing to homeowners in the form of 100%
Deferred Payment Loans, the amount of which shall include the accepted bid.
A. Deferred Payment Loans (DPL)
Deferred Payment Loans are conditional grants for single family rehabilitation that are
provided to homeowners who are unable or unlikely to obtain conventional financing due to their
income limits. The Deferred Payment Loan (DPL) involves a security instrument (lien) requiring
repayment of the loan only if the homeowner sells or transfers ownership of the rehabilitated
home, ceases to use it as his/her primary residence within five years of the date of the DPL, or
fails to maintain reasonable required standards of care and maintenance. During the five-year
period, the principal is "forgiven' or subtracted from the principal balance in equal monthly
amounts, so that at the end of the fifth year of owner occupancy (by at least one of the recipients
if owned jointly), the loan is fully amortized. There is no interest charged during the five years.
In the event that the sole owner dies or both/all owners die within the five-year loan
period, repayment of the loan will not be required.
Deferred Payment Loans are conditional grants for single family replacement that are
provided to homeowners who are unable or unlikely to obtain conventional financing due to their
income limits. The Deferred Payment Loan (DPL) involves a security instrument (lien) requiring
repayment of the loan only if the homeowner sells or transfers ownership of the rehabilitated
home, ceases to use it as his/her primary residence within ten years of the date of the DPL, or
fails to maintain reasonable required standards of care and maintenance. During the ten-year
period, the principal is "forgiven' or subtracted from the principal balance in equal monthly
amounts, so that at the end of the ten year of owner occupancy (by at least one of the recipients if
owned jointly), the loan is fully amortized. There is no interest charged during the ten years.
In the event that the sole owner dies or both/all owners die within the first five years of
the loan period, repayment of the loan will not be required
If repayment of a DPL becomes due, the prorated principle balance will be due in full
within thirty (30) days of the sale/transfer of ownership or the owner's cessation of primary
residence at the property.
The maximum DPL for an owner-occupied single family dwelling is $50,000 for
rehabilitation and $175,000 for replacement. In tbe event that necessary cost exceed the
established limits additional fund can be utilized at the discretion of the DRI rehabilitation
specialist
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March 2008
Agenda Item No. 10F
April 22, 200S
Page 10 of 19
B. Scope of Rehabilitation Assistance
DRIICDBG financing of housing rehabilitation is available for the following purposes:
]. Restoration of disaster impacted owner occupied single family homes.
2. Hardening owner occupied homes for future storms.
3 Correcting local housing code (Florida Building Code) and Section 8 standard violations;
4. Providing cost effective energy conservation features;
5. Provide reasonable repairs and modifications to make the dwelling accessible to
handicapped and elderly occupants as necessary and technically feasible; and
6. Correcting health and/or safety violations that may be present, including replacement of
dilapidated or malfunctioning stoves or refrigerators and interim controls or abatement of
lead-based paint ha2ards;
V. QUALIFICATIONS
A. General
In ordcr for a homeowner to be eligible for rehabilitation assistance, the following criteria
must be met:
1. Total Household incomc must not exceed the very low, low and moderate limits set
for the HUD Section 8 program at the time assistance is provided.
2. The owner must possess and provide clear title to the property, although it may be
jointly owned and the property may be mortgaged. Providing proof of title and
insurance is an owner responsibility and expense.
3. The owner must reside in the dwelling to be rehabilitated at the time of application.
4. Property tax, mortgage payments and utility bills must be current and ownership
must not be jeopardized by any other threat of foreclosure, default or clouded title.
5. The property must be fully insured for flood insurance, if the home is in the 100-ycar
flood plain. Flood insurance must remain in effcct for the entire period of the
Deferred Payment Loan Agrcement. Any unit to be addressed with rehabilitation
funds must be elevated to at least I' above base flood elevation (or to local code)
whichever is greater;
6. All applicants that may havc a business or familial relationship with a member of the
Collier County BCC, Housing Rehabilitation Specialist, Program Administrator and
participating construction contractors must fully disclose this relationship at the time
of the application, at the point in time in which the conflict occurs and definitely
before a construction contract is executed.
7. If a boundary survey is required, the owner is responsible for providing necessary
proof or documentation at the owner's expense.
8. Residents and owners of rental property are not eligible to pmiicipate in the program.
B. Household Income
The following rules are applicable in determining household income:
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March 2008
Agenda Item No. 10F
April 22, 200S
Page 11 of 19
1. The gross income of all household members occupying the dwelling is included in
calculating household income. However, wages earned by dependent minor children
(under ]8) are not included in total.
2. Occupants of a dwelling who are not related to or dependent upon the owner(s) are
not considered as part of the owner's household.
3. Rent or other household support contributed by non-household occupants of a
dwelling is included in household income.
4. The owner's assets, with the exception of the home in which he/she resides and
personal property such as an automobile, will be considered in determining
eligibility. The actual annual income from the asset will be calculated as part of the
total household income. Inclusion of such assets, if any, will be in strict accordance
with 24 CFR 813.106 and any current modification thereof.
VI. STRUCTURAL REQUIREMENTS
A. General
In addition to owner eligibility requirements for participation in the DRIICDBG Housing
Rehabilitation Program, the dwelling must be:
]. Damaged as a result of Hurricane Wilma or
2. Feasible for Hurricane Mitigation/Hardening.
In order for a house to be considered feasible for rehabilitation, proposed construction
must:
a) Correct all violations of the local housing code and Section 8 standards;
b) Provide interim controls or abatement for lead-based paint hazards as required by HUD
and EP A for structures constructed prior to ] 978 that will be assisted by the program. All
houses built prior to 1978 will be tested for lead based paint. If lead based paint is found,
interim control procedures will be used for all houses rehabilitated at or below $25,000.
Houses above $25,000 will be rehabilitated using abatement procedures. The occupants will
be notified of the hazards of lead-based paint, the symptoms and treatment of lead poisoning,
how to avoid poisoning, lead level screening requirements and appropriate abatement
procedures;
c) Meet applicable local zoning requirements, as well as local, state and federal housing
code requirements for rehabilitation work;
d) Leave at least 20 % of the original structure based upon the formula provided in this
chapter;
e) Not exceed the program costs noted in this chapter; and thc cost of rehabilitating a
housing structure to the value after rehab should never exceed]:].
f) Be made reasonably accessible to handicapped/elderly occupants, when the unit is
occupied by such.
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Agenda Item NO.1 OF
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g) New Construction or substantial improvement of any residential building (or
manufactured home) located within the 100 year flood plain shall have the lowest floor,
including basement elevated no lower than (1) foot above the base flood elevation (or per
local code). Should solid foundation perimeter walls be used to elevate a structure, openings
sufficient to facilitate the unimpedcd movements of flood waters shall be provided.
B. Structural Integrity
Rehabilitation requires that at least 20% of the original structure remain after construction,
based upon the following formula. Three (3) major components of the house are considered, with
each component weighted to total 100% of the structural value of the house. These components
and ratios are: roof - 20%, exterior walls - 60%, and flooring system - 20%.
As an illustration, if 50% of the roof must be replaced, 50% of the walls must be replaced and
25 % of the flooring system (including framing) must be replaced. The factors are then ratioed
based on the 20/60120 formula, so that 50% replacement of the roof is equal to rcplacing 10% of
the structure, 50% replacement of the exterior walls equals 30% replacement of the structure, and
25 % replacement of the flooring system equals 5 % replacement of the structure. Thus,
replacement equals 10%, plus 30%, plus 5%, or a total of 45% of the structure. This leaves 55 %
of the original structure, indicating that the structure is feasible for rehabilitation.
This calculation will be performed by the Housing Rehabilitation Specialist. Should significant
deterioration occur between application and time the unit is scheduled for rehabilitation, the unit
will be re-evaluated for continued eligibility and a decision made by the Housing Rehabilitation
Specialist whether to replace it with an alternate unit or to request a change in type of
rehabilitation (demolition, permanent relocation, etc.) in accordance with current DCA contract
requirements.
VII. PROCEDURES
A. Application and Inspection
Each property owner who applies for rehabilitation assistance is initially screened to
determine whether he/she is eligible for a 100% Deferred Payment Loan. A preliminary
inspection is then conducted to determine feasibility ofrchabilitation.
If either the owner or the structure does not meet eligibility requirements for program
participation, the Housing Rehabi]itation Specialist will reject the application. A writtcn rejection
notification will be sent to the owner
If both the owner and the house appear to be eligible for program participation, the
application/verification process continues. A work write-up with cost estimate is developed by
the Housing Rehabilitation Specialist and approved by the property owner. The cost estimate for
the job is considered confidential information until bid opening.
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Agenda Item No. 10F
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B. Bidding
Bidding of potential cases is conducted by the Collier County Housing Rehabilitation
Specialist. Owners select at least three licensed contractors. The Housing Rehabilitations
specialist then verifies that the chosen contractors are eligible to bid. The administrator makes
maximum effort to ensure participation by minority contractors.
No housing unit owner, or occupant, or employee or immediate relative of the same, either
personally or corporately, shall serve as a contractor or sub-contractor to be paid with CDBG
funds for the rehabilitation of said building, nor shall they be paid for their own labor with
CDBG funds for the rchabilitation of said building.
A notice is sent to each eligible bidder to inform them of the job. Each contractor must attend a
pre-bid conference held at the house to be rehabilitated, or inspect the house under the owner's
supervision.
Sealed bids will be opened at a scheduled bid opening. The Housing Rehabilitation Specialist
will disclose the bids to the homeowner. The homeowner reserves the right to reject any and all
bids and to award in the best interest of the owner. The owner must approve the bid award prior
to signing contracts. The contractor with the lowest bid may not necessarily be selected by the
homeowner.
C. Contracting and Rehabilitation
The rehabilitation contract is executed between the homeowner and the contractor, along with
the Collier County Rehabilitation assistance agreement.
The Notice of Commencement is recorded immediately. The program pays for all project
recording fees.
The Notice to Proceed is issued to the contractor. When temporary relocation of the occupants
is required, the Notice to Proceed will be delayed until the house is vacated. The contract time of
performance (generally 30 - 45 days) begins with issuance of the Notice to Proceed.
D. Inspections
Periodic inspections of the rehabilitation construction are performed by the Collier County
Housing DRI Rehabilitation Specialist throughout the contract period. These inspections are
conducted to assure compliance with the contract standards for workmanship and materials, to
detect any unauthorized deviations and to identify necessary changes to the contract work in its
early stages.
Inspection and approval of completed work must be conducted by the Housing Rehabilitation
Specialist prior to the contractor's receiving partial or final payment. The owner's acceptance of
the work is also required before payment is received.
E. Change Orders
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Any additions to, deletions from, or changes in the rehabilitation contract work, time, or price
must be approved in a written change order before the additional work is started. The change
order is executed by the owner and contractor and is approved by the Housing Rehabilitation
Specialist. Change orders may be issued to correct code deficiencies or to obtain any other
desired change in the work. DRI/CDBG funds can only be for change orders that correct code
violations as documented by the local building official, a bonafide code violation report, or to
meet Section 8 housing quality standards found after construction begins.
F. Payment
Payment will be upon the completion of each activity accompanied by an invoice and
approved site inspection by the DRI Rehabilitation Specialist.
If the owner refuses to authorize payment due to a dispute with the contractor, the Housing and
Human Services Director or his/her designee may recommend disbursement without the owner's
approval if the claim is shown to be without merit or inconsistent with policies and the goal of
the program. Such disbursement shall be issued only after the HHS Director has reviewed the
facts and circumstances involved in the dispute and has determined that the owner's refusal to
issue payment is without just cause. A record of all pertinent information shall be placed in the
case file.
H. Follow-Up
After completion of the contract, it is the owner's responsibility to notify the contractor in
writing of any defect in the work or material. The owner is also requested to notify the Collier
County DRI Rehabilitation Specialist of any complaints to the contractor so assistance in follow-
up can be provided. If the contractor does not respond to the owner's written complaint within a
reasonable time frame and in a satisfactory manner, the HHS Director will verify the complaint.
If the HHS Director judges the complaint to be valid, he/she will send written request for
warranty service to the contractor. The contractor will then take action as monitored by the
owner and the DRI Housing Rehabilitation Specialist. Upon receiving notice from the owner that
the complaint has been satisfied, the Housing Rehabilitation Specialist will inspect the work and
make such note in the case file. Failure to resolve complaints shall be justification for removing
a contractor from participation with the program.
VIII. CLEARANCE/PERMANENT RELOCA nON/DEMOLITION RELOCATION
A. General
Permanent Relocation and/or Demolition Relocation are synonymous terms used in the
rehabilitation program whcn a homc is unsound and not suitable for rehabilitation based on the
structural intcgrity criteria. Homeowner eligibility requirements are the same as for
rehabilitation. Further policies are included in thc local Anti-displacement and Relocation Policy.
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Agenda Item No. 10F
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B. Clearancc
Requirements are identified by the Housing Rchabilitation Specialist and are included in
the replacement unit bid package. In this way, the same contractor is responsible for site
cleanup and preparation as for provision of the replacement unit. Disposal of debris and
associated activities are also included if this method is utilized. When demolition or clearance
is conducted separately, bid packages are prepared with procedures following those identified
for rehabilitation in this manuaL
C. Permanent Relocation/Demolition Relocation
This activity involves replacement of an eligible owner occupied unit that is beyond
economic repair. The DRI Housing Rehabilitation Specialist will decide on a case-by-case
basis whether to utilizc a modular, manufacturcd or other type of unit. Decision items will
include budget, zoning, replaccment requirements, cost estimates, timcframe and a number of
other items that may vary case-by-case.
Once the decision is made, the Housing Rehabilitation Specialist prcpares bid specifications
and plans (if necessary) bascd on owner input from review of available plans. Bidding
contracting and inspections thcn proceed as in the rehabilitation process.
D. Differences
]. A major diffcrence in this type of rehabilitation assistance is that the DPL issued is not
for the full value of the replacement unit. The valuc of the DPL is based on a calculation
that takes the difference between the assessed value of the original unit (real property not
included) and the actual cost of the new unit (without rea] property). The difference is the
value of the DPL. This is because the dilapidated unit that was demolished belonged to
the owner and is being replaced on a one-for-one basis. Ownership of the replacement
unit is vested directly to the owner with no interest on the part of the local government
(except for the DPL). .
2. Program disbursements arc made from the local DR1JCollier Rehabilitation operating
account.
In the case of replacement of existing mobile/manufactured homes, the limit will be based
upon the acceptablc bid price of a replacement homc of comparablc size. If the existing homc is
inadequately sizcd, the replacement home will be sized to include the appropriate bedrooms
needed to meet Section 8 and/or local housing code rcquircments for occupancy
Necessary site improvements, including water supply, sewage disposal, and clearance, will
also be provided along with the actual dwelling replacement.
If existing regulations do not allow a mobile/manufactured home to be replaced with a like
dwelling, a site built home may be provided with DR1JCDBG funds if approved by the local
government, and funds are available...
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March 2008
Agenda Item No. 10F
April 22, 200S
Page 16 of 19
IX. CONTRACTOR LISTING
The Housing Rehabilitation Program will establish and maintain a current listing of eligible
contractors for bidding on all phases of the program Establishment of this list will include
maximum effort to utilize local and minority contractors.
A. Recruiting
Contractors in the local area will be recruited as part of the local government's
compliance with Federal Section 3 requirements. This special effort will be based upon the list of
contractors licensed in the jurisdiction including residential, building and gencral contractors.
Letters sent to contractors, or advcrtiscments placed soliciting them, will be placed in the
appropriate program file.
The contractor listing will include all local contractors who apply and are determined
eligible based upon program qualification standards.
B. Contractor Eligibility
In order to participate in the Housing Rehabilitation Program, a contractor must:
]. Maintain a current licensees) with the appropriate jurisdiction;
2. Maintain a satisfactory record regarding complaints filed against the contractor at the
state, fedcral or local level;
3. Maintain insurance: $100,000/$300,000 coverage for contractor's public liability
(including accidental death and bodily injury). or $300,000 comprehensive coverage and
$100,000 covcrage of property damage (in addition to bodily injury), with a ccrtificate of
insurance from the insurer guaranteeing ten (10) day notice to the Housing Rehabilitation
Program before discontinuing coverage. Workman's Compensation, as applicable, is also
rcquired;
4. Maintain a satisfactory credit record, including:
(a) Referenccs from two (2) suppliers who have done business with the
contractor involving credit purchases; and
(b) References from three (3) subcontractors who have subcontracted with the
contractor; and
(c) The ability to fimmce rehabilitation contract work so all bills are paid
before requesting final payment;
5. Satisfactory references from at least thrce (3) parties for whom the contractor has done
construction;
6. Absence from any list of debarred contractors issued by the Federal or State DOL, HUD
or DCA;
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March 200S
Agenda Item No. 10F
April 22, 200S
Page 17 of 19
The DRI Housing Rehabilitation Specialist will ensure that current and past performance of
the contractor are satisfactory based upon readily available information, and reserves the right to
check any reliable source in establishing such determination.
The DRI Housing Rehabilitation Specialist will explain the contractor's obligations under
Federal Equal Opportunity regulations and other contractual obligations at the pre-bid
conference. Program procedures, such as bidding and payment are also explained to the
contractor.
C. Disqualification
Contractors may be prohibited or removed from program participation for:
1. Poor workmanship, or use of inferior materials;
2. Evidence of bidding irregularities such as low balling, bid rigging, collusion, kickbacks,
and any other unethical practice;
3. Failure to abide by the work write-up, failure to completc work write-up (and bid)
accomplishments, and any attempts to avoid specific tasks in attempts to reduce costs;
4. Failure to pay creditors, suppliers, laborers or subcontractors promptly and completely;
5. Disregarding contractual obligations or program procedures;
6. Loss of liccnse(s), insurance or bonding;
7. Lack of reasonable cooperation with owners, rehabilitation staff or the others involved in
the work;
8. Abandonment of ajob;
9. Failure to complete work in a timely manner;
] O. Inability or failure to direct the work in a competent and independent manner;
] 1. Failure to honor warrantics;
] 2. Ineligibility to enter into federally or state assisted contracts as determined by the U.S.
Secretary of Labor, HUD or DCA;
13. Other just cause that would expose the Program or owner to unacceptable risk;
]4. Failure to respond to a minimum of three (3) consecutive requests for bids; or
15. At the contractor's request.
X. RELOCATION/DISPLACEMENT
The Uniform Relocation Assistance and Real Property Acquisition Policies Act of ]970 does
not apply to displacement under The Collier County DRI Rehabilitation Program; since neither
the Collier County BCC nor Housing and Human Services acquires the vacated (demolished or
rehabilitated) property and residents participate voluntarily. Therefore, relocation services will be
provided in Collier County Anti-Displacement and Relocation Policy that covers situations in
great detail.
Household/property owners previously approved for proposed housing assistance may
voluntarily withdraw their application for assistance, which must be confirmed in writing. If the
Department determines the applicant to be ineligible for assistance, the Department shall send
written notification to the applicant, stating that the application has been rejected and the reason
for the rejection.
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March 2008
Agenda Item No. 10F
April 22, 200S
Page 18 of 19
XI. APPEALS/COMPLAINTS
The Housing and Human Services Department and designated staff members are authorized by
the Collier County BCC to make all determinations of eligibility for assistance and level of
assist'illce, scheduling of rehabilitation, demolition and relocation, and contract management.
Citizens and/or contractors should issue complaints to the Housing and Human Services
Director. For a complaint to be considered valid, it must be issued in writing within a period of
30 days of its occurrence. Responses also should be issued in writing.
XII. PROGRAM INCOME
No program income is planned to result from this program. Deferred Payment Loans will be
monitored by the Collier County Housing and Human services staff during the DRl/CDBG
period of agreement. After the expiration of the agreement between Collier County and the State,
the monitoring will be performed by the designated representative.
If repayment of a DPL or program income is received during the DRIJCDBG agreement
period, it will be used for additional rehabilitation as authorized by the Department of
Community Affairs. Program income or DPL payment received subsequent to closeout will be
returned to the Department of Community Affairs unless the state's program income regulations
are changed.
This Housing Rehabilitation/Replacement Administrative Plan is adopted this April 22, 2008.
ATTEST:
DWIGHT E. BROCK, CLERK
BOARD OF COUNTY COMMISSIONERS
COLLIER COUNTY, FLORIDA
By:
By:
, Deputy Clerk
TOM HENNING, CHAIRMAN
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March 2008
Appendix A
Agenda Item NO.1 OF
April 22, 200S
Page 19 of 19
Point Values to be used in
Rankina Applicants
Handicapped, elderly persons on fixed income within established very
Low income guidelines 13 Points
Elderly persons on fixed income within established very low-income guidelines
Handicapped, elderly persons on fixed income within established low to
moderate-income guidelines
Elderly persons on fixed income within established low to moderate-income
guidelines
Handicapped or disabled adults within established very low. income guidelines
Families with handicapped dependents within established very low
Income guidelines
Families within established very low. income guidelines
All others within established very low-income guidelines
Handicapped or disabled adults within established low to moderate-income
guidelines
Families with handicapped dependents within established low to
Moderate income guidelines
Families within established low to moderate-income guidelines
All others within established low to moderate-income guidelines
Families that have received state or fcderal housing assistance in
the last 15 years regardless of income status
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12 Points
]] Points
10 Points
9 Points
8 Points
7 Points
6 Points
5 Points
4 Points
3 Points
2 Points
] Point
March 2008