Item H2
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BOARD OF COUNTY COMMISSIONERS
C ounty of M onroe
Mayor David Rice, District 4
Mayor Pro Tem Craig Cates, District 1
The Florida Keys
Michelle Coldiron, District 2
Vacant, District 3
Holly Merrill Raschein, District 5
County Commission Meeting
March 16, 2022
Agenda Item Number: H.2
Agenda Item Summary #10301
BULK ITEM: Yes DEPARTMENT: County Land Acquisition and Land
Management
TIME APPROXIMATE: STAFF CONTACT: Cynthia Guerra (305) 289-2588
9:25 A.M.
AGENDA ITEM WORDING: Approval of a Resolution granting approval of a purchase
agreement of property funded by the Community Development Block Grant-Disaster Recovery
(CDBG-DR) Voluntary Home Buyout Program (VHBO) in the amount of $206,000.00, execution of
a restrictive covenant running with the land, and moving one (1) Market Rate - Rate of Growth
Ordinance (ROGO) Exemption from the acquired property to the Administrative Relief pool for
market rate allocation(s).
ITEM BACKGROUND:
NOTE: Consistent with State Statute 119.071(5)(f)(1.)(b), staff has omitted/redacted the
identifying information as adopted during the 2020
legislative session. This statute provides an exemption from public records requirements for
personal identifying information for the purpose of disaster recovery assistance. Properties proposed
for acquisition by the Voluntary Home Buyout Program were affected by Hurricane Irma in 2017.
The Department of Economic Opportunity (DEO) awarded Monroe County $15 million in CDBG-
DR funding, via Subrecipient Agreement I0092, to acquire Irma-damaged properties in low to
moderate income areas or from households with low to moderate income. The State established
Rebuild Florida Voluntary Home Buyout Program Guidelines (attached) and the County adopted
priority scoring in Resolution 56-2021 (attached) to assist with program implementation.
With the assistance of Tetra Tech, the consultant retained to assist in program administration, the
County is acquiring property that was damaged by Hurricane Irma. The acquisition is being made to
reduce the impact of future disasters by acquiring properties that are in high-risk flood. The
Subrecipient Agreement requires the County to restrict VHBP acquired properties to uses stated in
-2019 which stated the
-restrict the properties in perpetuity to open space uses, storm water
improvements or to restore and conserve the natural floodplain functions. The property owner has
agreed to sell the property for the price of $206,000.00. The purchase price is based on an appraisal
completed pursuant to the programs requirements. The property owner has also agreed to surrender
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all development rights or ROGOs vested in the property. DEO has reviewed and approved the
acquisition per the terms of the Subrecipient (grant) Agreement. The redacted Purchase Agreement
and Restrictive Covenant are attached.
Monroe County has identified 1 ROGO exemption on the property. Upon adoption of this
resolution, the Planning and Environmental Resources Department shall move one (1) Market Rate
ROGO Exemption into the ROGO Administrative Relief pool for market rate allocations.
The seller is being evaluated to determine if they are eligible for an additional financial incentive
award provided under the CDBG-DR program for assistance in securing replacement housing in the
relocate to lower risk flood prone areas. If the sellers are ultimately eligible for the incentive award,
that award will be brought back for BOCC approval prior to disbursement.
PREVIOUS RELEVANT BOCC ACTION:
On July 22, 2019, the BOCC approved the CDBG-DR VHBP grant application to DEO (Agenda
Item B.1).
On May 20, 2020, the BOCC approved Resolution 150-2020 allowing the county to execute the
CDBG-DR VHBP Subrecipient Agreement with DEO (Agenda Item D.2).
On February 17, 2021, the BOCC approved Resolution 56-2021 updating the local program
prioritization criteria for the Voluntary Home Buyout Program (Agenda Item D.5).
CONTRACT/AGREEMENT CHANGES:
NA
STAFF RECOMMENDATION: APPROVAL.
DOCUMENTATION:
DEO Voluntary Home Buyout Program Guidelines
Resolution 056-2021 Final approved - Updating County Criteria
00063 Restrictive VHBP Covenant_Redacted
00063_PurchaseAgreement_OwnerSigned_Redacted
00063 resolution for VHBP purchase covenant and Adm R Pool redacted
FINANCIAL IMPACT:
Effective Date: Effective upon execution by Monroe County and closing of real estate transaction
Expiration Date: NA
Total Dollar Value of Purchase Agreement: $206,000
Total Cost to County: $0
Current Year Portion: NA
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Budgeted: No
Source of Funds: CDBG-DR Voluntary Home Buyout Program
CPI: NA
Indirect Costs: NA
Estimated Ongoing Costs Not Included in above dollar amounts: NA
Revenue Producing: NA If yes, amount:
Grant: $ 15 Million CDBG-DR Voluntary Home Buyout Program Grant
County Match: $ 0
Insurance Required: NA
Additional Details: NA
REVIEWED BY:
Christine Hurley Completed 02/18/2022 3:13 PM
Cynthia Guerra Completed 02/24/2022 1:47 PM
Purchasing Completed 02/24/2022 2:14 PM
Paunece Scull Completed 02/25/2022 10:56 AM
Budget and Finance Completed 02/25/2022 11:09 AM
Risk Management Completed 02/25/2022 12:49 PM
Liz Yongue Completed 02/25/2022 2:08 PM
Board of County Commissioners Pending 03/16/2022 9:00 AM
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PROGRAM GUIDELINES
This document provides guidelines for the
requirements for the Hurricane Irma Voluntary
Home Buyout administered by the State of Florida
Department of Economic Opportunity (DEO). This
program is funded by the U.S. Department of
Housing and Urban Development (HUD) Community
Rebuild Florida
Development Block Grant—Disaster Recovery
(CDBG-DR) allocation as described in Public Laws
115-56, 115-123, 116-20.
Voluntary Home
VERSION 1.3
August 23, 2021
Buyout
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VERSION HISTORY
Version Change
Summary of Changes
Number Date
1.0 2/28/20219 Original Document
1.2 6/17/2021 Updated Anti Fraud Waste and Abuse section.
Changed formatting to mirror other OLTR guidelines.
Added Version History table
1.3 8/23/2021 Added Version Policy
Added Policy Change Control
Moved Definitions to precede Introduction
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VERSION POLICY
Version history is tracked in the Version History Table (page i), with notes regarding version changes. Dates of
each publication are also tracked in this table.
Substantive changes in this document that reflect a policy change will result in the issuance of a new version of
the document. For example, a substantive policy change after the issuance of Version 1.0 would result in the
issuance of Version 2.0, an increase in the primary version number. Non-substantive changes such as minor
wording and editing or clarification of existing policy that do not affect interpretation or applicability of the policy
will be included in minor version updates denoted by a sequential number increase behind the primary version
number (i.e., Version 2.1, Version 2.2, etc.).
POLICY CHANGE CONTROL
Policy review and changes for the State of Florida Office of Long-Term Resiliency are considered through a change-
control process. Policy clarifications, additions, or deletions are needed during the course of the program to more
precisely define the rules by which the Program will operate. Program staff will document policy-change requests
that will be tracked in the program files. Requests are compiled and brought before supervisory staff in a policy
meeting. Subject matter experts working in a particular policy area or task area that will be affected by the policy
decision may be invited to assist in policy evaluation, if necessary. Policy meetings will be held as frequently as is
necessary to consider policy decisions critical to moving the Program forward in a timely manner. Policy decisions
will be documented and will result in the revision of the document in question.
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Hurricane Irma Voluntary Home Buyout Guidelines
TABLE OF CONTENTS
1.0 Definitions ............................................................................................................................................................1
2.0 Introduction ..........................................................................................................................................................2
2.1 Anti-Fraud Waste and Abuse ..........................................................................................................................2
2.2 Application and Administration of the Buyout ...............................................................................................3
2.3 National Objectives .........................................................................................................................................3
2.4 How to meet the National Objective ..............................................................................................................3
2.5 Locations .........................................................................................................................................................3
2.6 Prioritizing Projects .........................................................................................................................................4
3.0 Property Valuation ...............................................................................................................................................5
3.1 Appraisals ........................................................................................................................................................5
3.2 Title and Legal Services ...................................................................................................................................5
3.3 Environmental Reviews ...................................................................................................................................6
4.0 Eligible Property Types and Requirements ...........................................................................................................7
5.0 Project Eligibility ...................................................................................................................................................8
5.1 Eligible (Allowable) Cost ..................................................................................................................................8
5.2 Ineligible (Not Allowable) Cost ........................................................................................................................9
6.0 Award Determination ........................................................................................................................................ 10
7.0 Award Calculation Methodology ....................................................................................................................... 11
8.0 Duplication of Benefits Process ......................................................................................................................... 12
9.0 Housing Replacement Assistance Determination ............................................................................................. 13
10.0 Open Space Restrictions .................................................................................................................................. 14
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Hurricane Irma Voluntary Home Buyout Guidelines
1.0 Definitions
100-year flood plain: The geographical area defined by FEMA as having a one percent chance of being inundated
by a flooding event in any given year.
500-year flood plain: The geographical area defined by FEMA as having a 0.2 percent chance of being inundated
by a flooding event in any given year.
CDBG-DR: Community Development Block Grant-Disaster Recovery.
Designated Area: The land determined by the subrecipient that is eligible for the Voluntary Home Buyout
Program.
Duplication of Benefits (DOB): Any assistance provided to a homeowner for the same purpose (i.e., for repair,
replacement or reconstruction) as any previous financial or in- kind assistance provided to a property owner for
the repair, replacement, or reconstruction of his or her home. Rebuild Florida is prohibited from creating a DOB.
This prohibition comes from the Robert T. Stafford Disaster Assistance and Emergency Relief Act (Stafford Act)
and therefore, these other sources of funds must be deducted from any potential award.
Eligible Property: A property that is located within designated areas or is located outside of the designated area
and is substantially damaged and is a health and safety risk.
Eligible receipts: Proof of payment for items that are strictly for rebuilding the disaster-affected structure.
Receipts must consist of permanent fixtures only, such as wood panels, drywall, paint, carpet, etc.
Ineligible receipts: Receipts for repairs that are completed on detached buildings such as garages or sheds, and
personal items such as food and clothing, gasoline, tools, and equipment.
Low- to Moderate-Income (LMI): An income less than 80% of the local area median income.
Low- to Moderate-Income Household (LMH): A household with an income that is less than 80% of the local area
median income (AMI).
Pre-event fair market value: The land and dwelling value for parcels, as determined by each subrecipient, prior to
the disaster.
Post- event fair market value: The land and dwelling value for parcels, as determined by each subrecipient, after
the disaster.
Special flood hazard area (SFHA): means the area where the National Flood Insurance Program’s (NFIP’s)
floodplain management regulations must be enforced and the area where the mandatory purchase of flood
insurance applies.
Subrecipient: A city or a county that has applied for and has been awarded a CDBG-DR buyout project by the
Florida Department of Economic Opportunity (DEO).
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2.0 Introduction
The Florida Department of Economic Opportunity (DEO) Office of Disaster Recovery (ODR) is the administrator of
a Community Development Block Grant–Disaster Recovery (CDBG-DR) program funded by the U.S. Department
of Housing and Urban development (HUD) under Public Laws 115-56 and 115-123.
DEO is the agency responsible for the administration of disaster funds allocated to housing, economic
development, and infrastructure activities. DEO is administering Rebuild Florida’s Voluntary Home Buyout
Program. The purpose of Rebuild Florida’s CDBG-DR Voluntary Home Buyout Program is to acquire properties that
are in a Special Flood Hazard Area (SFHA), and in high-risk flood areas to help reduce the impact of future disasters,
and to assist property owners to relocate outside the threat of flooding. To administer this program, city and
county governments that are within the Most Impacted and Distressed (MID) areas, as defined by HUD and DEO
in the 2018 State of Florida Action Plan for Disaster Recovery, may apply.
There are two options for cities and counties to apply for assistance under the Rebuild Florida Voluntary Home
Buyout Program. The first option is to use the available CDBG-DR funding as leverage to match funding for projects
that are also eligible for the Hazard Mitigation Grant Program (HMGP). The second option is to work with the cities
and counties directly in low- to moderate-income areas to acquire contiguous parcels of properties, and to acquire
property from low- to moderate- income households (LMH) with a focus on LMH that did not have flood insurance
at the time of Hurricane Irma.
Cities or counties participating in this program must purchase properties at the pre-event fair market value (FMV)
of the land and the structure for all sellers that were owners of the property at the time of Hurricane Irma. For all
sellers that own the property post Hurricane Irma, post-event FMV must be used to purchase the property and
may not exceed the pre-event FMV and properties located in the designated area must be deed-restricted to
remain green space in perpetuity. In addition to the pre-event FMV of the property, eligible owners with qualified
income may also receive a housing replacement assistance incentive up to $25,000, and owners with non-qualified
income may receive a housing replacement allowance up to $10,000. All awards are subject to the Robert T.
Stafford Act, requiring that all funds used for disaster-related purposes be deducted as a duplication of benefit,
which is discussed in greater detail below.
2.1 Anti-Fraud,Waste, and Abuse
Rebuild Florida constituents, employees and contractors may report suspected fraud, waste, or abuse by
contacting Constituent Management Services staff, submitting information via the Report Fraud, Waste or Abuse
online form (http://floridajobs.org/rebuildflorida/report; (all contact information fields are optional to allow for
anonymity) or by sending an e-mail to cdbg-dr_antifraudwasteabuse@deo.myflorida.com.
All suspected cases of fraud will be taken seriously, and complaints will be reported to OLTR’s Compliance and
Reporting Manager and DEO’s Office of the Inspector General at OIG@deo.myflorida.com. If DEO’s OIG
determines that it is appropriate, it will coordinate its investigation with agencies such as the Florida Office of the
Inspector General, the Florida Office of the Attorney General, or the Florida Department of Business and
Professional Regulation.
All substantiated cases of fraud, waste, or abuse of government funds will be forwarded to the United States
Department of Housing and Urban Development (HUD), Office of Inspector General (OIG) Fraud Hotline (phone:
1-800-347-3735 or email: hotline@hudoig.gov) and DEO’s HUD Community Planning and Development (CPD)
Representative. OLTR must provide a timely response within 15 working days of the receipt of a complaint, as
stated in 84 FR 169.
Office of Long-Term Resiliency’s comprehensive Anti-Fraud Waste and Abuse Policy can be found here.
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2.2 Application and Administration of the Buyout
A city or county must apply for the CDBG-DR Voluntary Home Buyout Program offered in their community. At the
time of the application, the subrecipient identifies properties that would qualify for the program. A budget will be
determined based on the pre-event FMV of all properties identified eligible for the program that were owned by
the sellers at the time of the disaster; however, all properties identified as eligible for the program that were
purchased post disaster will have budgets determined on the basis purchase price, which is not to exceed the pre-
event FMV. If awarded, the city or county would enter into a contract with DEO to administer and oversee their
jurisdiction in which the program applies.
The property owners that apply for the voluntary home buyout program submit their applications directly to the
subrecipient. Once the local level of government approves an individual property owner’s application for buyout
assistance, the subrecipient must submit the application to DEO for verification that the property is not receiving
or has not received Rebuild Florida housing repair or replacement assistance. A property owner cannot be eligible
for buyout assistance if the property owner has received CDBG-DR funding to repair the property. A subrecipient
may subcontract with a third-party administrator to administer the program for them.
2.3 National Objectives
The Voluntary Home Buyout Program will meet the Low- Moderate-Income (LMI) Area Benefit, and the Low- to
Moderate-Income Housing (LMH) National Objective. To meet the LMI Area Benefit, the properties acquired
through buyouts will be used in a way that benefits all the residents in an area where at least 51 percent of the
residents are low- and moderate-income persons. To meet the National Objective of LMH, the households to be
assisted must be LMI and occupy the replacement housing. Occupying replacement housing means that CDBG-DR
funds will be provided for an eligible activity that benefits the LMH by supporting their move from high risk areas.
2.4 How to meet the National Objective
When undertaking buyout activities and to demonstrate that a buyout meets the LMH National Objective, and
according to the State CDBG regulations at 24 CFR 570.483(b)(3), entitlement CDBG regulations at 24 CFR
570.208 you must apply the LMH National Objective to eligible activity carried out for the purpose of providing or
improving permanent residential structures that, upon completion, will be occupied by low- and moderate-
income households. Therefore, a buyout program that merely pays homeowners to leave their existing homes
does not result in a low- and moderate- income household occupying a residential structure and, thus, cannot
meet the requirements of the LMH National Objective.
If the subrecipient chooses to buyout low- and moderate-income households, the buyout can be structured in one
of the following ways to meet the National Objective:
The subrecipient must combine the acquisitions of the properties with another direct benefit, such as the
housing replacement assistance and allowance program that Rebuild Florida has established as an
incentive for the Voluntary Home Buyout Program, or
The subrecipient must meet the low- and moderate-income area benefit criteria, provided that the
subrecipient can document that the properties acquired through the buyouts will be used in a way that
benefits all the residents in an area where at least 51 percent of the residents are low- and moderate-
income persons. When using this approach, the subrecipient must define the service area based on the
end use of the buyout properties.
2.5 Locations
Those counties that received a declaration of both FEMA Individual Disaster Assistance (IA) and Public Disaster
Assistance (PA) after Hurricane Irma are eligible to apply to DEO to be a subrecipient of funding and administer a
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local Voluntary Home Buyout Program.
2.6 Prioritizing Projects
All local governments that apply will prioritize all home buyouts by focusing on acquisition of properties that are
in concentrated residential areas that meet the low- and moderate-income area definition. DEO will rate all
subrecipient applications by a process using a scoring method based on low- and moderate-income persons;
households that are occupied by the disabled, and persons that are 62 years of age and older; benefit target areas;
activity need and justification; cost reasonableness and effectiveness; environmental justice; and application
completion.
Each subrecipient can score a maximum 55 points per household plus an additional 15 bonus points for an early
submission and application completion. The scoring method will be as follows:
1.Benefit to LMI households–maximum of 20 points combined:
A.LMI household: 5 points.
B. LMI household that occupies anyone 62 or older: 5 points.
C. LMI household that occupies anyone under age 18: 5 points.
D. LMI household that includes anyone that is disabled, handicapped, or has special needs: 5 points.
2.Low- and moderate-income households that did not have flood insurance at the time of the disaster: 10
points.
3.Matching contributions–maximum of 25 points combined:
A.Efforts leverage funding with HMGP: A maximum of 10 points will be awarded based on the
applicant’s efforts to secure funding with HMGP as part of the match program offered as option
one of the Voluntary Home Buyout Program.
B. Matching: A maximum of 15 points will be awarded based on the ratio of the amount of eligible
matching funds to the amount of CDBG funds request: 1.1 or more, 15 points; 0.75– 1, 10 points;
0.50–1, 7 points; 0.25–1, 5 points; and less than 0.25, 0 points.
4.Application submitted 10 days prior to the deadline: 10 points–application must be completed in its
entirety. An incomplete application will not receive these 10 points.
5.Application Completeness: A maximum of 5 points–applications will receive up to 5 bonus points based
on completeness. Applications that have not been signed will not be considered.
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3.0 Property Valuation
The value for each property identified for buyout will be established by the subrecipient based on the pre- event
FMV, minus any DOB for applicants that owned the property at the time of the disaster. Owners that purchased
the property after the date of the disaster will be limited to the price the owner paid for the property, which is
not to exceed the pre-event FMV. If repairs have been made to the property, eligible repair receipts are added to
the post-event price of the buyout. Local governments are responsible to hire contract teams that are licensed in
the State of Florida to provide the following:
Appraisals;
Title and legal services;
Environmental reviews;
Demolition of the property; and
Other related buyout processes.
3.1 Appraisals
The property value, either current or pre-event depending upon ownership status at the time of Hurricane Irma,
must be derived from a method that results in a reasonable determination of FMV. The appraisal methodology
shall be used in this program, and appraisals must be conducted by an appraiser in accordance with the Uniform
Standards of Professional Appraisal Practice. The appraiser must comply with relevant State laws and
requirements and shall have the appropriate certification, qualifications, and competencies based on the type of
property being appraised. When determining the value of many structures, the subrecipient may choose to
perform appraisals to establish a statistical sampling of property values and develop an adjustment factor to apply
to tax assessed values so that they reasonably reflect each property’s market value. DEO will monitor each
subrecipient’s appraisal practices.
3.2 Title and LegalServices
The subrecipient shall conduct a title search for each property it plans to acquire. The purpose of
the title search is to ensure that the owner is the sole and actual titleholder to the property, identify other persons
with a property interest, and to ensure that the title is clear. Clear title means that there are no mortgages or liens
outstanding at the time of sale. In addition, there may not be incompatible easements or other encumbrances to
the property that would make it either ineligible for acquisition or noncompliant with open space land use
restrictions.
Other requirements include:
A title insurance policy, demonstrating a clear (fee) title conveyance, must be obtained for each approved
property that will be acquired.
A physical site inspection for each property verifying the property has no physical encumbrances, which
may require a site survey to clearly establish property boundaries.
Title to the property must transfer by a warranty deed in all jurisdictions that recognize warranty deeds.
All incompatible easements or encumbrances must be extinguished.
The subrecipient shall take possession at settlement.
The subrecipient must record the deed at the same time as and along with the programmatic deed
restrictions.
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The deed transferring title to the property and the programmatic deed restrictions will be recorded
according to State law and within 14 days after settlement.
3.3 Environmental Reviews
The subrecipient is responsible for conducting environmental reviews or causing such reviews to occur through
contracted providers of environmental services. The subrecipient will be responsible for ensuring that all reviews
are completed on all properties, which includes damaged properties that are to be acquired by the local
government as well as properties to be obtained by the seller through the housing replacement assistance. This
review is to be completed prior to an award for both acquired and allocated properties. The new property must
meet the minimum Department of Social Services Standards (DSS), as determined by the Housing Quality
Standards (HQS) under HUD guidelines, or an inspection equivalent. This is not to be completed until the property
owner has completed the eligibility phase and has been confirmed to be eligible for assistance.
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4.0 Eligible Property Types and Requirements
The eligible property types are non-commercial properties, which may include owner-occupied structures,
residential rental properties, or vacant lots. To be considered an eligible property for the buyout program, the
property must satisfy at least one of the following requirements:
The property is located within the designated areas (Special Flood Hazard Area (SFHA) or High-Risk Flood
Area) or
The property is located outside of the designated areas and satisfies one of the following requirements:
o The property is substantially damaged (51% or more of the pre-event fair market value of the
structure is damaged); or
o The property is considered a health/safety risk; or
o The property is located within a floodway.
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5.0 Project Eligibility
Properties eligible for buyout must meet the following requirements:
The property will be purchased from a willing, voluntary seller.
The property contains a structure that has been damaged or destroyed due to Hurricane Irma, or the
property is in a SFHA, or a High- Risk Flood Area.
All compatible easements or encumbrances can and must be extinguished.
The property cannot be contaminated with hazardous materials at the time of buyout, other than
incidental demolition or household waste.
The property cannot be part of an intended, planned, or designated project area for which the land is to
be acquired by a certain date, and/or where there is an intention to use the property for any public or
private future use inconsistent with the open space deed restrictions and FEMA acquisition requirements
(e.g., roads and flood control levees).
The property will not be subdivided prior to the buyout, except for portions outside the identified hazard
area, such as within a SFHA or any risk zone identified by FEMA.
Properties that have received rehabilitation or repairs through the Housing Repair and Replacement
Program will not be eligible for assistance under the Voluntary Home Buyout Program.
5.1 Eligible (Allowable) Cost
Allowable costs for property buyout projects depend upon the scope of the project. The following costs associated
with the buyout of hazard-prone real property and the demolition of structures are allowable:
Market value of the real property (i.e., land and structure) either at the time of sale or immediately prior
to Hurricane Irma depending upon the ownership status at the time of Hurricane Irma. Therefore, if the
appraisal of the property is prior to the disaster then all Duplication of Benefits (DOB) must be subtracted
from this amount unless the owner can provide proof that funds were used for another eligible purpose
and should be excluded as an offset to the amount of the DOB.
Fees for necessary appraisal costs, title search, title insurance, property inspection, and survey if
applicable.
Demolition and removal of property.
Fees paid for environmental review services.
Relocation costs associated with displaced tenants under the Uniform Relocation Act.
The following costs of demolition activities at the vacated site are generally allowable if necessary:
Removal of demolition debris to an approved landfill, which includes debris from the demolition of houses,
garages, driveways, sidewalks, and above-grade concrete slabs.
Asbestos abatement.
Removal of septic tanks. If not removed, the floors and walls of the tank must be cracked or crumbled so
the tank will not hold water and then be filled with sand or other type of clean fill.
Removal of all structure foundation and basement walls to a point at least one foot below the finish grade
of the site.
Removal of only those trees that restrict the demolition work on any structure.
Termination of all abandoned utilities to a point at least two feet below the finish grade of the site.
Capping of all wells and/or removal of associated components.
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Hurricane Irma Voluntary Home Buyout Guidelines
Grading, leveling, and site stabilization of all demolition sites.
5.2 Ineligible (Not Allowable) Cost
Costs that are not allowable under this Voluntary Home Buyout Program include, but are not limited to:
Compensation for land that is already held by an eligible entity. This is the case even if the eligible entity
is not the subrecipient for the project. However, in that event compensation for development rights (e.g.,
obtaining an open space easement) may be an allowable cost.
The cleanup or remediation of contaminated properties, except for permitted disposal of incidental
demolition and household hazardous wastes.
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Hurricane Irma Voluntary Home Buyout Guidelines
6.0 AwardDetermination
Cities and counties will use the applicable FMV methodology to determine the fair market value of a property for
sellers based on the ownership status at the time of Hurricane Irma, and must provide documentation within the
application to DEO to support that methodology:
Owners of eligible properties at the time of Hurricane Irma receive an offer to purchase the property
minus any duplication of benefits (DOB).
Owners that purchased eligible property after Hurricane Irma will receive an offer to purchase the
property based on pre-event FMV as the basis of their buyout, subject to the following limitations and
DOB review:
o The amount of the award is limited to the price the owner paid for the property, not to exceed
the pre-event fair market value. If repairs have been made to the property, eligible repair receipts
are to be added to the post-disaster price of the acquisition.
o Banks or mortgage companies that have been deeded the property on a post Hurricane Irma basis
will be limited to the amount of the mortgage balance (pay-off). This is all that the bank(s) or
mortgage company(ies) would receive if the owner of the property had participated in the
program.
o Properties that are in foreclosure and with the same owner as that prior to Hurricane Irma will
receive any remaining proceeds (i.e., after sales expenses, taxes, liens) after the sale of the
property, with the award being based on pre-event FMV.
o Trusts, probates, and living wills will receive an offer based on the pre-event fair market value as
if the pre-event owner is participating and subject to a DOB review. This is the same offer the
owner would have received if they had participated in the program.
o If the property is in the court of bankruptcy, the bankruptcy trustee will provide the valuation
documentation that was used to value the property at the time of the bankruptcy. The award
amount is not to exceed the pre-event fair market value; however, if the property is being held in
the trust with the owner remaining the current deed holder and has not been acquired by the
trustee, documentation must be provided to demonstrate that the property is still deeded to the
owner and only held in the trust. If this proof is provided, the owner will receive an award based
on the pre-event fair market value of the property.
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Hurricane Irma Voluntary Home Buyout Guidelines
7.0 Award Calculation Methodology
Rebuild Florida has developed multiple disaster recovery housing programs based on the nature and scope of
damage in order to meet the objectives of recovery efforts. This Award Calculation Methodology demonstrates a
method of calculating an individual’s award in the context of the Voluntary Home Buyout Program by using the
pre-event FMV, and in combination with other housing programs, such as HMGP and the Housing Replacement
Assistance and Housing Replacement Allowance programs. All awards are subject to DOBs.
The following provides four examples of calculating duplication of benefits for the subrecipient to offer in
combination with other housing programs:
Hazard Mitigation Grant Program (HMGP): Subrecipients may use CDBG-DR funds as the required
matching funds for residential properties that will be purchased through the local jurisdiction’s HMGP
program. This is a voluntary real property acquisition program funded by FEMA to acquire flood damaged
homes at FMV. HUD has provided a CDBG-DR matching component funded with 75% FEMA funds (with
up to 25% CDBG-DR match funds) or 90% FEMA funds (with up to 10% CDBG- DR match funds).
CDBG-DR Buyout Program: Subrecipients may fund 100% of the buyout with CDBG-DR funds. This is a
voluntary real property acquisition program with awards that are limited to the pre-event FVM of the land
and structure.
Housing Replacement Assistance: Subrecipients may offer incentives to low- to moderate-income
qualified applicants as part of the buyout program design. This is a program to retain an area’s population,
awarding up to $25,000 in addition to the pre-event FMV of the buyout home for income-qualified buyout
applicants.
Housing Replacement Allowance: Subrecipients may offer a lower value incentive to qualified participants
who do not meet low- to moderate-income requirements. This is a program for those who are not income-
qualified for the Housing Replacement Assistance. Participants can be eligible for up to $10,000 in Housing
Replacement Assistance if their damaged home meets certain requirements.
Both housing replacement awards are subject to the Robert T. Stafford Act, requiring that these funds be
considered duplication of benefits. This funding may only be used to purchase a new home within the same taxing
jurisdiction. Additionally, applicants may only qualify for this additional assistance if they relocate outside of the
floodplain to a lower-risk area. Subrecipients must maintain documentation describing how the amount of
assistance was determined to be necessary and reasonable.
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8.0 Duplication of BenefitsProcess
Costs that duplicate amounts received by or available to the property owner or affected tenant from another
source for the same purpose are not allowable. The deduction will be taken from the purchase offer if the offer is
determined by an appraised market value prior to Hurricane Irma. The program will recoup duplicative amounts
identified after grant funds have been expended. Property owners who receive duplicative payments following
the conclusion of the property settlement are responsible for reimbursing the subrecipient for those duplicated
funds.
State grant program funding is supplemental to other funding sources and must be reduced by amounts
reasonably available (even if not sought or received) from other sources to address the same purpose or loss.
DEO, subrecipients, and project participants, including property owners and tenants, must take reasonable steps
to recover all such amounts. Amounts that are reasonably available to the individual or entity shall be treated as
benefits available for the same purpose, even if he/she/it did not seek them.
All subrecipients must create and implement a subrogation policy to address recoupment of duplicative funds
received by a program participant after the settlement of grant funds. All subrecipients must enter into a
subrogation agreement with each program participant.
Tax adjustments resulting from filings related to losses to the rental property are not considered a DOB and do
not affect the award.
For property valuations based on post-disaster FMV, no DOB will be taken from the offer. A program that provides
post-disaster FMV to buyout applicants only provides the actual value of the property; thus, the seller is not
considered a beneficiary of CDBG-DR assistance; therefore, this activity does not fall under the Stafford Act.
For property valuations based on pre-disaster FMV, the following procedures assist in preventing grant funds from
duplicating benefits available from other sources:
Property owners who have a U.S. Small Business Administration loan with a mortgage on the property
that is to be acquired are required to repay the loan or roll it over to a new loan at closing.
The subrecipient shall identify any other potential sources of benefits to the property owner, or tenant.
The subrecipient is responsible to verify information via FEMA Data for structural repairs and
replacement, and rental or relocation assistance provided to tenants along with verifying all National
Flood Insurance Program (NFIP) coverage information, including the amount paid on a claim and the
amount of coverage available.
The subrecipient shall coordinate with property owners who shall disclose all potential amounts available
to them for the same purpose, as described above, including repair or replacement assistance received,
all insurance benefits available to them under an existing policy (whether they submitted a claim or not),
and any potential recovery based on litigation or other legal obligations. The property owner must take
reasonable steps to recover such amounts. Amounts that are reasonably available or anticipated to the
property owner shall be treated as benefits available for the same purpose, even if the property owner
did not seek them.
The subrecipient shall coordinate with tenants who shall disclose any amounts received from rental or
relocation assistance.
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Hurricane Irma Voluntary Home Buyout Guidelines
9.0 Housing Replacement AssistanceDetermination
Because this is a voluntary home buyout program, owners are not eligible for assistance under the Uniform
Relocation Assistance (URA) and Real Property Acquisition Policies Act. However, tenants who are displaced as a
result of the owner’s sale of the property to the subrecipient are entitled to assistance under the URA.
All property owners participating in the buyout are eligible for up to the maximum housing replacement assistance
allowed by the Robert T. Stafford Act. All income qualified buyout participants are eligible for up to $25,000 in the
housing replacement assistance plus pre-event market value of their buyout home. Those that are not income
qualified will be eligible for up to $10,000 in housing replacement allowance only if the damaged property is
located within the designated area.
The following requirements must be met to qualify for housing replacement assistance:
The buyout home must be in the designated area or house a low- to moderate-income family.
The homeowner must purchase a replacement home that is more expensive than the buyout home.
The replacement home must be located within the jurisdiction of the subrecipient.
The replacement home must be considered decent, safe, and sanitary.
If income qualified, the housing replacement assistance would be a maximum of $25,000. However, the
replacement home purchased must be valued at $25,000 greater than the buyout home to receive the full award.
If the value of the replacement home is less than $25,000 but is more than the pre-event fair market value of the
buyout home, the applicant’s housing replacement assistance will be capped at the difference. If the applicant is
not income-qualified, the maximum amount of replacement housing the applicant can receive is $10,000. Pre-
event owners of vacant lots and rental properties are not eligible to receive housing replacement assistance, as
they did not occupy the structure at the time of the disaster. In addition, post-event owners are not eligible to
receive a replacement housing award, as they were not required to relocate due to the disaster.
If a rental home is purchased through the Voluntary Home Buyout Program and houses tenants that will be
required to relocate, they are considered displaced persons that are eligible for relocation benefits under the
Uniform Relocation Act (URA). The subrecipient must develop and implement URA policies and procedures and
ensure that all required notices, services and payments afforded to tenants qualified under URA are provided in
a timely manner.
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Hurricane Irma Voluntary Home Buyout Guidelines
10.0 Open Space Restrictions
To be eligible, a project must result in property buyout that meets all the requirements governing the use of grant
funds and the use of acquired real property, including:
The property acquired, accepted, or from which structures are removed will carry a permanent deed
restriction requiring the property be maintained for open space, recreational, or wetlands management
purposes only.
The subrecipient will dedicate and maintain the property in perpetuity for uses compatible with open
space, recreational, or wetlands management practices, and be consistent with conservation of natural
floodplain functions.
The subrecipient must record the deed restrictions consistent with the model deed.
Construction of new structures is only allowed where:
A public building is open on all sides and functionally related to a designated open space or recreational
use.
The structure is a public restroom.
The structure is compatible with open-space, recreational, or wetlands management usage and floodplain
management policies and practices and has DEO and FEMA approval in writing before the construction of
the structure begins.
Any new structures built on the property according to the third subparagraph above will be elevated or
flood-proofed to the Base Flood Elevation (BFE) plus two foot of freeboard as defined in the Federal
Register 24 CFR 55.2(b)(10) and meet applicable requirements of the National Flood Insurance Program
(NFIP) floodplain management regulations or local codes.
After settlement, no federal disaster assistance for any purpose from any federal source, nor flood
insurance payments will be made with respect to the property, and no person or entity shall seek such
amounts.
The subrecipient must obtain the approval of DEO and the FEMA Regional Administrator before conveying
ownership (fee title) of the property to another public agency or qualified conservation organization.
Property transfer to private citizens and corporations will not be approved.
All development rights in the form of a conservation easement on the property must be conveyed to the
conservation organization or retained by the subrecipient or other public entity.
The subrecipient must accept responsibility for monitoring and enforcing the deed restriction and/or
easement.
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Return to:
The Law Office of Anthony J. Barrows
540 Key Deer Blvd
Big Pine Key, FL 33043
305-872-1050
-------------------------------- Space Above this Line for Recording -----------------------------------
DECLARATION OF RESTRICTIVE COVENANTRUNNING WITH THE LAND
AND DECLARATION OF RESTRICTION ON FUTURE DEVELOPMENT
th
This Declaration of Restrictive Covenant is executed as of the 16 day of March, 2022 (the
“Effective Date”), by Monroe County, a political subdivision of the State of Florida, whose post
office address is 1100 Simonton Street, Suite 205, Key West, FL 33040, in reference to the
property ("Property") known as:
Legal Description:
RE #:
Address:
conveyed by the Deed between , participating in a federally assisted acquisition
project ("Grantor"), and Monroe County, ("Grantee"), its successors and assigns:
WHEREAS, Hurricane Irma impacted the Florida Keys on September 10, 2017, destroying or
majorly damaging over 4,000 residential structures in Monroe County; and
WHEREAS, in response to the impacts statewide of Hurricane Irma, the Department of Economic
Opportunity (DEO) developed a Community Development Block Grant - Disaster Recovery
(CDBG-DR) Action Plan that detailed how the State will administer the funds statewide. The
Action Plan includes the Voluntary Home Buyout Program (VHBP) which was created to acquire
properties that are in high-risk flood areas, to reduce the impact of future disasters, and to assist
property owners to relocate to less risk prone areas; and,
WHEREAS, Monroe County was awarded $15 Million in CDBG-DR funding for the creation
and implementation of a VHBP for unincorporated portions of the County. The County adopted
Resolution 150-2020 to accept and execute the VHBP DEO Subrecipient Agreement for the
CDBG-DR funding on May 20, 2020, which was amended by an Amendment to the VHBP
Subrecipient Agreement approved on March 17, 2021, making the County a VHBP grantee; and
WHEREAS, the Subrecipient Agreement requires the County to restrict VHBP acquired
properties to uses stated in the County’s grant application. The application included Resolution
224-2019 which stated the county’s intention was to deed-restrict the properties in perpetuity to
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open space uses, storm water improvements or to restore and conserve the natural floodplain
functions; and
NOW, THEREFORE, this DECLARATION is made from and after the Effective Date and
subject to the following terms and conditions:
1. Terms. Pursuant to the terms of the Subrecipient Agreement I0092 dated June 4, 2020, the
following conditions and restrictions shall apply in perpetuity to the Property described in
the attached deed and acquired by the Grantee pursuant to CDBG-DRrequirements
concerning the acquisition of the Property:
a. Compatible uses. The Property shall be dedicated and maintained in
perpetuity to open space uses, storm water improvements or to restore and
conserve the natural floodplain functions.
b. Structures. Construction of new structures is only allowed where:
i. A public building is open on all sides and functionally related to a
designated open space use.;
ii. The structure is a public rest room; or
iii.The structure is compatible with the uses proposed included in
paragraph 1.a., and has DEO approval in writing before the
construction of the structure begins.
Any new structures built on the Propertyaccording to the subparagraph b.
above will be elevated or flood-proofed to the Base Flood Elevation (BFE)
plus two foot of freeboard as defined in the Federal Register 24 CFR
55.2(b)(10), or as amended and defined in the Federal Register, and meet
applicable requirements of the National Flood Insurance Program (NFIP)
floodplain management regulations or local codes.
c. Disaster Assistance and Flood Insurance. After settlement, no federal
disaster assistance for any purpose from any federal source, nor flood
insurance payments will be made with respect to the Property, and no person
or entity shall seek such amounts.
d. Transfer. The subrecipient must obtain the approval of DEO before
conveying ownership (fee title) of the Property to another public agency or
qualified conservation organization. Property transfer to private citizens and
corporations will not be approved. All development rights in the form of a
conservation easement on the property must be conveyed to the
conservation organization or retained by the subrecipient or other public
entity.
2. Enforcement. The subrecipient must accept responsibility for monitoring and enforcing
this deed restriction and/or easement.
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3. Amendment. This agreement may be amended upon signatures of DEO and the Grantee
only to the extent that such amendment does not affect the fundamental and statutory
purposes underlying the agreement.
4. Severability. Should any provision of this grant or the application thereof to any person or
circumstance be found to be invalid or unenforceable, the rest and remainder of the
provisions of this grant and their application shall not be affected and shall remain valid
and enforceable.
IN WITNESS WHEREOF, the undersigned has caused this DECLARATION to be signed by its
duly authorized representatives, as of the day and year first above written.
Grantee/ COUNTY: MONROE COUNTY, FLORIDA
ATTEST: Kevin Madok, CPA, Clerk
By: _________________________ ________________________
As Deputy Clerk David Rice, Mayor
(Seal)
Date: ___________________
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RESOLUTION NO._____-2022
A RESOLUTION OF THE BOARD OF COUNTY
COMMISSIONERS OF MONROE COUNTY, FLORIDA,
GRANTING APPROVAL OF A PURCHASE AGREEMENT OF
PROPERTY FUNDED BY THE COMMUNITY DEVELOPMENT
BLOCK GRANT – DISASTER RECOVERY VOLUNTARY HOME
BUYOUT PROGRAM, APPROVING EXECUTION OF A
RESTRICTIVE COVENANT RUNNING WITH THE LAND, AND
APPROVING THE MOVEMENT OF A MARKET RATE ROGO
EXEMPTION FROM THE PROPERTY TO THE
ADMINISTRATIVE RELIEF POOL FOR MARKET RATE
ALLOCATIONS.
WHEREAS, Hurricane Irma impacted the Florida Keys on September 10, 2017 destroying or
majorly damaging over 4,000 residential structures in Monroe County; and
WHEREAS, The Department of Economic Opportunity (DEO) developed a Community
Development Block Grant - Disaster Recovery (CDBG-DR) Action Plan that detailed how the
State will administer the funds statewide. The Action Plan allocated funding for the Voluntary
Home Buyout Program (VHBP) for the unincorporated portions of Monroe County. The County
was awarded $15 Million in funding; and
WHEREAS, the County adopted Resolution 150-2020 to accept and execute the VHBP
Subrecipient Agreement for the CDBG-DR funding on May 20, 2020, which was amended by an
Amendment to the VHBP Subrecipient Agreement approved on March 17, 2021; and
WHEREAS, the purpose of Rebuild Florida’s CDBG-DR Voluntary Home Buyout Program
is to acquire properties that are in high-risk flood areas to help reduce the impact of future disasters,
and to assist property owners to relocate to less risk prone areas. The Subrecipient Agreement
requires the County to restrict VHBP acquired properties to uses stated in the County’s grant
application. The application included Resolution 224-2019 which stated the county’s intention
was to deed-restrict the properties in perpetuity to open space uses, storm water improvements or
to restore and conserve the natural floodplain functions. This deed-restriction is provided for in a
“Declaration of Restrictive Covenant Running with the Land and Declaration of Restriction on
Future Development”; and
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WHEREAS, Monroe County is acquiring property through the VHBP for a purchase price of
$206,000.00. This acquisition has been reviewed and approved by DEO perthe terms of the
Subrecipient Agreement; and
WHEREAS, Monroe County has one (1) ROGO Exemption on the property; and
WHEREAS, said one (1) market rate ROGO Exemption are not needed for the redevelopment
of the site; and
WHEREAS, the BOCC is moving one (1) market rate ROGO Exemption to the
Administrative Relief pool for market rate allocations.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF MONROE COUNTY, FLORIDA:
Section 1. Recitals and Legislative Intent:The foregoing recitals and statements of
legislative intent are true and correct and are hereby incorporated as if fully stated
herein.
Section 2. This resolution shall become effective upon its adoption by the Monroe County
Board of County Commissioners.
Section 3. This resolution authorizes the Mayor to execute the Purchase Agreement attached
hereto as Exhibit A.
Section 4. The resolution authorizes the Mayor to execute the Declaration of Restrictive
Covenant Running with the Land and Declaration of Restriction on Future
Development, attached hereto as Exhibit B.
Section 4. The resolution authorizes the Monroe County Planning Department to move one
(1) market rate ROGO Exemption to the Administrative Relief pool for market
rate allocation. ROGO Exemption attached hereto as Exhibit C.
PASSED AND ADOPTED by the Board of County Commissioners of Monroe County,
th
Florida, at a regular meeting of said Board held on the 16 day ofMarch 2022.
Mayor David Rice, District 4
Mayor Pro Tem Craig Cates, District 1
Commissioner Michelle Coldiron, District 2
Vacant, District 3
Commissioner Holly Merrill Raschein, District 5
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Attest: KEVIN MADOK, CLERKBOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
By:__________________________ By:________________________________
As Deputy Clerk Mayor
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Exhibit A
Purchase Agreement
Redacted pursuant to Fla. Stat. 119.071
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Exhibit B
Restrictive Covenant
Redacted pursuant to Fla. Stat. 119.071
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Exhibit C
ROGO Exemption Letter
Redacted pursuant to Fla. Stat. 119.071
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