Floyd County accepts $1.2 million CDBG award to rehab scattered‑site homes; liens, contractor oversight and student involvement outlined

Floyd County staff told the Board of Supervisors that the county was awarded approximately $1,200,000 through the Virginia Department of Housing and Community Development (DHCD) for a second phase of a scattered‑site housing rehabilitation program and asked the board to approve several precontract items and provider agreements needed to begin work. Staff explained the main changes from the previous phase: lien terms will vary by project cost. A 5‑year recapture lien was the model in the first round; DHCD rules allow longer lien periods for more expensive projects — a house with more than $50,000 in rehabilitation cost could carry a 10‑ or 15‑year lien depending on program requirements. Staff said forgiven portions of loans are prorated for each month of owner occupancy; if owners sell before the lien forgiveness period completes the remaining balance becomes program income and returns to the county for future housing work. The county presented a set of documents for approval: lien documents subject to attorney review, the New River Valley Regional Commission (NRVRC) task order that will administer regional elements of the grant, a contractor/rehab‑specialist agreement with Southeast Rural Community Assistance Project (CERCAP) to perform inspections and oversee construction, and additional precontract documents required by DHCD (nondiscrimination statement, anti‑displacement certification and other attachments). The board approved the NRVRC task order and the precontract documents and authorized attorney review and staff signatures. The CERCAP agreement was approved with one abstention recorded for possible conflict of interest. County staff said CERCAP will handle technical inspections, draw up the scope of work for each house under ‘‘housing quality standards,’’ perform weekly site checks during construction and sign off on completions. CERCAP will also help ensure bids, local subcontractor outreach and nondiscrimination requirements are met. Staff said the program requires detailed income certification for each household and careful file documentation. The board and staff discussed program mechanics, including what happens when an owner who benefited from the program dies (the lien remains on the property and must be honored; if the house is sold the unforgiven loan portion becomes program income) and that program funds must be used for additional housing work if repaid. Staff also described an educational partnership: the county is trying to involve trades students from the high‑school building‑trades program in some construction tasks where appropriate (framing, roofing, basic mechanical work) with CERCAP oversight and licensed contractors doing code‑required trade work. The board approved the requested document actions to allow the county to enter contracts and begin outreach.