Submitted By: James Haynes
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Presentation By: James Haynes
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Department: Community Development Services
FORMAL TITLE:
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Request to retroactively approve the expenditure of $8,277 in SHIP funding for the Simpson rehabilitation located at 2502 NW 18th Street
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OCALA’S RELEVANT STRATEGIC GOALS:
Operational Excellence
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
The Florida Legislature passed the Sadowski Act in 1991, creating a trust fund to finance state and local affordable housing initiatives managed by the Florida Housing Finance Corporation (FHFC). The State Housing Initiatives Program (SHIP) grant is funded through this act and distributed to counties and qualifying municipalities in Florida.
On December 9, 2025, the FHFC completed a compliance monitoring of the City’s 2022-2023 SHIP grant. During the course of the monitoring, it was observed that the City exceeded its internal limit for SHIP rehabilitation projects for the Simpson rehabilitation project, approved by Council on July 9, 2022, by $8,276.68.
• On July 9, 2022, Council approved Contract #CDS/220305 with Bruce Wayne Wiley, LLC in the amount of $117,536 for the rehabilitation of the Simpson residence.
• The City expended preconstruction costs of $1,725 for asbestos and mold testing.
• January 10, 2023, the City expended $4,149.68 under its city-wide tree contract to cut down trees threatening the residence.
• On February 21, 2023, change order #1 for additional material associated with the roof replacement was approved in the amount of $7,523.
• On March 9, 2023, change order #2 to replace a gas water heater control panel and two exterior hose bibs was approved in the amount of $550.
• On March 21, 2003, change order #3 to replace a 50-gallon water heater and fix a water leak in the lavatory drain was approved in the amount of $2,343.
• At the time of the conclusion of the Simpson project, the City’s Local Housing Action Plan (LHAP) indicated the maximum amount that could be spent on rehabilitation using SHIP funding was $125,000.
FINDINGS AND CONCLUSIONS:
During the FHFC monitoring, it was determined that the City of Ocala’s Community Programs division exceeded the maximum threshold for SHIP projects in its LHAP by $8,276.88; and should have received Council authority to do so.
The FHFC monitor recommended choosing one of the following to correct the oversight:
1. Use SHIP administrative funding, if available; or
2. Submit a technical revision to the LHAP requesting that FHFC authorize an increase to the maximum rehabilitation expenditure award amount; or
3. Submit a request to the City Council seeking retroactive approval for the amount by which the award was exceeded.
Because the City has already increased the maximum rehabilitation amount to $150,000 in its current LHAP to account for rising construction costs, staff seeks Council’s approval of recommendation number three, the retroactive approval to exceed the 2023 threshold of $125,000 for SHIP owner-occupied rehabilitation. This will avoid the repayment of $8,276.88 to the State. Staff recommends approval.
FISCAL IMPACT:
140-050-699-559-55-34010 $8,276.88
PROCUREMENT REVIEW:
N/A.
LEGAL REVIEW:
N/A
ALTERNATIVE:
• Approve with Changes
• Table
• Deny