The State of Florida enacted the William E. Sadowski Affordable Housing Act, Chapter 92-317 of Florida Sessions Laws, allocating a portion of documentary stamp taxes on deeds to local governments for the development and maintenance of affordable housing. The State Housing Initiatives Partnership (SHIP) Act, §420.907-420.9079, Florida Statutes (1992), and Rule Chapter 67-37, Florida Administrative Code, requires local governments to develop a one-to three-year Local Housing Assistance Plan (LHAP) outlining the strategies jurisdictions will use to utilize funding. The LHAP also establishes the maximum SHIP funds allowable for each programmatic strategy.
The Office of Housing and Community Services (HCS) administers SHIP funds, participant eligibility, contractor eligibility and program compliance. HCS determines the eligibility for all applicants by assessing income and property standards. All awards are disbursed via a deferred payment loan, secured by a mortgage agreement with restrictive covenant and promissory note. Resolution No. 2016-29663 approved the maximum award amounts for purchase assistance and rehabilitation assistance.
The Mayor and City Commission approved and adopted the City’s LHAP for Fiscal Years 16/17 and 18/19 via Resolution No. 2016-29663, pursuant to the requirements of the Act and the Rule, which LHAP currently provides an award limit of $70,000 for owner-occupied rehabilitation projects.
Pursuant to the Citywide Procedure P.O. 16.02, the City’s threshold for a department to procure goods and services is limited to $50,000 and there must be a formal competitive solicitation (ITB, RFP, RFQ, ITN) approved by the City Commission and the Procurement Department. HCS would like to administer the bid process for the award of project sums exceeding $50,000 (subject to the award limits set forth in the City’s LHAP), by establishing a pool of qualified contractors through the use of a Request for Qualifications (RFQ) process, to be issued at least once a year. The established list of qualified contractors can be used by the City and the eligible homeowners in connection with rehabilitation projects or disaster relief projects awarded through the SHIP program. Any purchase order above $50,000 will require the City Manager’s approval.
HCS disburses funds to the eligible contractor via a purchase order and payments are disbursed in three installments and a final payment.
HCS and the Procurement Department drafted a policy that is intended to:
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Ensure homeowners have access to qualified contractors for all owner-occupied repairs;
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Ensure that projects are awarded in a competitive manner that maximizes available funds;
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Ensure homeowners have a platform for performance evaluation of contractors;
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Ensure contractors have clear guidelines to complete work and receive timely payments;
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Ensure vendors comply with Building Department, Code Compliance and insurance requirements.
This policy is in accordance with State and Federal requirements and seeks to expedite the procurement process for projects. This policy seeks to streamline the expenditure process, by creating a list of eligible contractors and improving the quality control of rehabilitation projects. Contractors seeking to participate in the City’s Housing Rehabilitation Program must be prequalified through the City’s SHIP Contractor Prequalification Process. Annually, the City will issue a Request for Qualifications (RFQ) for those contractors interested in being prequalified to submit their statements of qualification for the City’s consideration. At a minimum, contractors must maintain the licensing, insurance, and qualifications required by the City to be prequalified for future projects awarded through this procedure. The Procurement Department will administer the application process on an annual basis.
In addition, the City contracts a third-party consultant for project management services. The Project Manager will assist the SHIP coordinator in drafting the Specification of Work, project monitoring/evaluation and project closeout. The Project Manager will assist SHIP coordinator and any other City staff in the evaluation of the bids submitted by the General Contractor. The Building Department can be provided with a copy of the Specification of Work for their review and any other applicable documents, in order to facilitate the expediting of applicable building permits.
The City's SHIP Coordinator shall seek at least three written quotes from pre-qualified contractors and shall make reasonable efforts to maximize competition, including seeking quotes from all pre-qualified contractors. In rare cases when three quotes cannot be obtained, the approval of the City Manager shall be required.
Once HCS selects the lowest and most responsive bidder, a purchase order shall be executed between the City, the selected contractor and the homeowner. At a minimum, the purchase order shall state the payment schedule, scope of work, and schedule of work. Additionally, the homeowner will execute the permit application and the notice of commencement. The Contractor must record the Notice of Commencement.
Progress and final payments to the Contractor shall be approved by the City only after the work has been inspected by the Project Manager and determined to comply with the contract and the project bid specifications. The request for payments shall be in three installments, according to the duration of the project. The Contractor will provide his/her invoice to the SHIP Coordinator. If there are pending change orders that do not increase the project amount greater than the amount stipulated herein, they may be approved administratively by the Department.
The policy also defines the role of HCS in the case of a dispute between a Contractor and the homeowner. All disputes not resolved by program staff should be reported to Florida Housing Finance Corporation for possible resolution before the move to arbitration. All unsettled claims or disputes between the Property Owner and the Contractor arising out of or related to the work shall be submitted to arbitration under the laws governed by the State of Florida. Notice of the demand for arbitration shall be filed in writing with the other party to this agreement, and shall be made within a reasonable time after a dispute has arisen.
Once the project is completed, City staff will coordinate the closeout, along with the Project Manager. If all program requirements are met, the final release of retainage will be processed. If, at any time during the project, HCS finds that a Contractor fails to meet his/her obligations with the homeowner and/or the City, and does not remedy the situation as stipulated by the Department, the Contractor will receive a default notice and opportunity to cure. If the violation is not remedied, the Contractor will be removed from the list and will be prohibited from participating for one year in the City’s Housing Rehabilitation Program.