City approves two HOME-funded rebuilds for elderly, low-income households

The Ocala City Council on Nov. 4 approved two HOME-funded rebuild projects aimed at preserving affordable housing units for elderly, low-income residents.

Community Development Services Director James Haynes explained both homes were evaluated and found dilapidated; rehabilitation was not cost-effective. Staff solicited bids under the city’s procurement rules and recommended contract awards to the lowest responsive bidders: 2W Construction Corporation for the Thomas residence (bid $220,550) and Steeda LLC for the Quarry residence (bid about $190,000). Both projects will be funded from the City of Ocala’s HOME grant program.

Council members asked whether the city should set caps on maximum allocations given limited HOME funding and long wait lists; staff said rising construction costs and the requirement that HOME dollars be used for significant projects leave few options beyond major rehabs or rebuilds. Haynes described the program’s occupancy and forgiveness terms: occupants must live in a rebuilt unit for at least five years, with loans forgiven over longer periods for elderly or disabled beneficiaries; any remaining balance if a property is sold before forgiveness is complete returns to the program as program income.

Council approved both contract awards by roll call. Staff said the approvals will generate local construction activity and help preserve at-risk affordable units, while acknowledging the HOME fund is finite and future allocations will need prioritization.