Agenda 12/14/1999 - Laserfiche WebLink

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structural condition exists which clearly causes the property to meet the definition of "Unsuitable for Rehabilitation" as set forth in the Program Design. The Rehab Specialist must prepare plans and specifications for the proposed substantially reconstructed house, and. either prepare an itemized cost estimate or secure bids from contractors and suppliers for the cost of the proposed house. Information concerning comparable newly constructed houses either in the neighborhood or in similar neighborhoods must be secured. The information should include the cost, square footage, acreage, and amenities. A statement from an appraiser or someone experienced in real estate and familiar with the local housing market must be obtained to assess the estimated value of the proposed substantially reconstructed house, including land. e. The cost of the proposed substantially reconstructed house MUST: 1. Be LESS than the estimated cost of rehabilitating the existing house; 2. Be 20% LESS than the price of comparable newly constructed houses; and 3. Be LESS than the estimated market value of the property including land after reconstruction. A worksheet MUST be submitted to DHCD that provides the cost comparisons listed above. Attached to the worksheet MUST be (1) the rehab cost estimate (or description of the structural defect making the property unsuitable for rehabilitation), (2) the comparable newly constructed house information, (3) the basis for the cost estimate of construction of the reconstructed house, and (4) a copy of the statement of the projected appraised value of the reconstructed house. The substantially reconstructed home may be either: (1) stick-built; or (2) a modular home meeting BOCA code. The owner must be allowed to select which option will be provided.