STATE OF FLORIDA

DIVISION OF ADMINISTRATIVE HEARINGS

METROPOLITAN DADE COUNTY, ) DEPARTMENT OF HOUSING AND URBAN ) DEVELOPMENT, )

)

Petitioner, )

)

vs. ) CASE NO. 81-1688L

)

DEPARTMENT OF HEALTH AND )

REHABILITATIVE SERVICES, )

)

Respondent. )

)

RECOMMENDED ORDER

This case was heard pursuant to notice on July 21, 1981, in Miami, Florida, by Stephen F. Dean, assigned Hearing Officer of the Division of Administrative Hearings. This case arose upon Petitioner's request for a formal hearing on the Respondent's denial of Petitioner's application for Low Income Energy Assistance Program benefits. At that hearing, the parties entered into a stipulation to continue the instant case to permit the filing of a rules challenge proceeding. Petitioner filed a rule challenge in which the validity of Respondent's rules were upheld. The parties were given 20 days by an order dated February 5, 1982, to reopen the record of this case or have this case decided upon their earlier stipulation. The parties did not respond, and this Recommended Order is based upon the stipulation of the parties entered July 21, 1981.

APPEARANCES

For Petitioner: Dianne S. Smith, Esquire

Assistant County Attorney Metropolitan Dade County 1626 Dade County Courthouse

73 West Flagler Street Miami, Florida 33130

For Respondent: Leonard Helfand, Esquire

Department of Health and Rehabilitative Services

401 North West Second Avenue, Room 1040 Miami, Florida 33128

FINDINGS OF FACT

1. The Department of Health and Rehabilitative Services ("Respondent") is the government agency responsible for administering the Low Income Energy Assistance Program in the State of Florida.

   
   

2. The Respondent adopted Rule 10 CER 80-11, Florida Administrative Code, and amended it to extend the time limit for filing applications for benefits.

3. Petitioner made application for benefits as a building operator.

   
   

4. The parties' Joint Exhibit #4 accurately reflects the financial status of the Petitioner as of the date of the data's submission to the Respondent. Joint Exhibit #4 was received in evidence.

   
   

5. Respondent denied the Petitioner's application by its letter of March 24, 1981, upon a finding that the building project was fully compensated pursuant to Rule 10 CER 80-11.10(2), Florida Administrative Code. Denial was specifically based upon inclusion of the Petitioner's reserves fund in the computation of the project's compensation.

   
   

6. Petitioner had operating capital and cash reserves in excess of its operating expenses. These cash reserves were maintained pursuant to federal rules governing public housing and were, at the time of Petitioner's application, below the requirements set by rule.

   
   

   CONCLUSIONS OF LAW

   
   

7. The Division of Administrative Hearings has jurisdiction to hear this cause and enter this Recommended Order pursuant to Section 120.57(1), Florida Statutes. The Respondent has the statutory authority to regulate the Low Income Energy Assistance Program.

   
   

8. Petitioner applied for benefits based upon its operation of public housing in Dade County, Florida. At specific issue in this case was Petitioner's disqualification under Rule 10 CER 80-11.10(2), Florida Administrative Code, which provides as follows:

   
   

   (2) The project must not be fully compensated. A low rent housing public housing authority project is not fully compensated when the sum of the project's reserve and approved subsidy does not equal or exceed the project's expenses less revenue. Other projects are not fully compensated when the sum of the project's approved subsidy and revenue does not equal or exceed the project's expenses.

   
   

9. The financial records submitted by Petitioner show that it had sufficient operating capital plus cash reserves to meet its operating expenses. These cash reserves were maintained pursuant to federal rules governing public housing and were, at the time of submission, below the requirements set by rule.

   
   

10. These cash reserves mean that the project is fully funded; i.e., it has monies sufficient to meet its operating expenses. Petitioner failed to meet the threshold requirement of Rule 10 CER 80-11.10(2), Florida Administrative Code.

RECOMMENDATION

The Hearing Officer recommends disapproval of the Petitioner's application for Low Income Energy Assistance Program benefits for failure to meet the requirements of Rule 10 CER 80-11.10(2), Florida Administrative Code, because Petitioner's cash reserves plus operating revenues exceed its operating expenses and therefore its project was fully compensated.

DONE and ORDERED this 24th day of May, 1982, in Tallahassee, Leon County, Florida.

STEPHEN F. DEAN, Hearing Officer Division of Administrative Hearings The Oakland Building

2009 Apalachee Parkway

Tallahassee, Florida 32301

(904) 488-9675

Filed with the Clerk of the Division of Administrative Hearings this 24th day of May, 1982.

COPIES FURNISHED:

Dianne S. Smith, Esquire Assistant County Attorney Metropolitan Dade County 1626 Dade County Courthouse

73 West Flagler Street Miami, Florida 33130

Leonard Helfand, Esquire Department of HRS

Room 1040, Ruth Rhode Building

401 Northwest Second Avenue Miami, Florida 33128

David H. Pingree, Secretary

Attn: Susan B. Kirkland, Esquire Department of HRS

Building One, Room 406 1323 Winewood Boulevard

Tallahassee, Florida 32301

Docket for Case No: 81-001688

Orders for Case No: 81-001688