Subject:
Title
Approval, Re: Terminating Subrecipient Agreement HM001 with the Florida Department of Economic Opportunity
End
Fiscal Impact:
None
Dept/Office:
Housing and Human Services
Requested Action:
Recommendation
It is requested that the Board of County Commissioners authorize the County Manager to complete all necessary actions to terminate the Subrecipient Agreement HM001 with the Florida Department of Economic Opportunity.
End
Summary Explanation and Background:
The Housing and Human Services Department (HHS) has been attempting to partner with the Melbourne Housing Authority (MHA) on a Community Development Block Grant - Disaster Recovery (CDBG-DR) project utilizing funds associated with Hurricane Matthew. The funds were allocated to the State Department of Economic Opportunity (DEO) by the US Department of Housing and Urban Development (HUD) and awarded to Brevard after a Request for Proposal process. The project was approved by the Board on May 21, 2019 and the County executed a Sub-Recipient Agreement with DEO on October 31, 2019. The project (Palms at University) was expected to be collaboratively funded utilizing $2,850,000 in CDBG-DR funds, a Federal Housing Administration (FHA) insured loan to the MHA, and funds from the MHA.
After a December 10, 2019 site visit by DEO, concerns arose regarding the MHA's 2015 procurement of their General Contractor, which resulted in DEO raising the County's risk assessment. On December 10, 2019, the MHA was initially notified (by HHS) that based upon DEO's concerns, the General Contractor would need to be re-procured. MHA's failure to do so could result in the repayment of funds (initially from the County's General Fund) and have a negative impact on the County's ability to secure future disaster funding from DEO.
Subsequently, the MHA argued that a re-procurement was not necessary and tried to convince the County to accept the risk. HHS then conducted an in-depth review of procurement documents...
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