1. Housing Rehabilitation Program 2011 Community Development Block Grant State of Florida Small Cities Program

2. Prosperity 2021 City’s Economic Development Plan Focuses –Maintain Neighborhoods –Help Existing Businesses Grow –Attracting Investment

3. Overview $750,000 Housing Rehabilitation Grant to facilitate rehab and demo/replacement (if necessary) for homeowner occupied properties that might otherwise become sources of abandonment and blight. Program aims to bring resident’s primary home back up to minimum standards (Build Code, Local Codes, Housing Quality Standards).

4. Overview Federal and State Grant Requirements –Serve a minimum of 10 Low/Mod-Income Households (i.e. Family of Four <$46,800) –Application Process and Ranking –Post rehab and demo/replacement activities, home must meet all code requirements and Housing Quality Standards –Long-term affordability secured through deferred payment lien –Competitive Bidding, Fair Housing, Uniform Relocation Act, etc.

5. Request for Exception Adopted Housing Assistance Plan includes cost feasibility limit of $87,500 for demo and replacement –Based on statewide Small Cities CDBG Program standards –Did not consider Palm Coast local codes (1,200 s.f. min., garage, landscaping, architectural standards, etc.) Next qualified applicant’s home requires demo and replacement Lowest Responsible Bid: Caprock, LLC of Bunnell Exceeding HAP cost feasibility limit requires City Council approval of exception

6. Requested Information City Council requested consultant and City Attorney research possibility of claim under homeowner’s insurance –Most policies exclude foundation shifting/settling, unless connected with a covered event –Prior claim was rejected and subsequently policy was dropped (requested all documents) –Claim was made under new policy, awaiting inspection and determination City staff will continue to pursue insurance claim to possibily offset grant funding

7. Recommendation City staff recommend approval of exception to exceed Housing Assistance CDBG cost feasibility limits