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2013 NSP Administrative PlanCOLLIER COUNTY Neighborhood Stabilization Administrative Plan The Administrative Plan is a guide to operating the Collier County Neighborhood Stabilization Program. The program was established under Title III of Division B of the Housing and Economic Recovery Act of 2008 (HERA), as amended, with an additional appropriation made through the Wall Street Reform and Consumer Protection Act of 2010 (Dodd -Frank Act). Collier County was allocated a total of $11,190,920 through the aforementioned Acts. Department of Housing, Human and Veteran Services 6/25/2013 NSP1 Grant Number B- 08 -UN -12 -0003 NSP3 Grant Number B- 11 -UN -12 -0003 CA Table of Contents INTRODUCTION............................................................................................................... ..............................3 DEFINITIONS.................................................................................................................... ..............................3 Abandoned.................................................................................................................. ..............................3 BlightedStructure ..............................4 ....................................................................................................... CurrentMarket Appraised Value ................................................................................ ..............................4 Date of Notice of Foreclosure ..................................................................................... ..............................4 Foreclosed................................................................................................................... ..............................4 LandBank .................................................................................................................... ..............................4 Subrecipient................................................................................................................ ..............................5 Use (for the purposes of HERA section 2301(c)(1)) .................................................... ..............................5 Vicinity......................................................................................................................... ..............................5 ACTIVITIES....................................................................................................................... ..............................5 ACQUISITION............................................................................................................... ..............................5 Objective................................................................................................................. ..............................5 Policies..................................................................................................................... ..............................5 IdentifyingProperties .............................................................................................. ..............................5 REHABILITATION.......................................................................................................... ..............................6 Objective................................................................................................................. ..............................6 Policies..................................................................................................................... ..............................6 HOMEOWNERSHIP...................................................................................................... ..............................7 Objective................................................................................................................. ..............................7 Policies..................................................................................................................... ..............................7 DEMOLITION............................................................................................................... ..............................7 Objective................................................................................................................. ..............................7 Policies..................................................................................................................... ..............................7 LANDBANK .................................................................................................................. ..............................8 Objective................................................................................................................. ..............................8 Policies..................................................................................................................... ..............................8 DISPOSITION................................................................................................................ ..............................8 Objective................................................................................................................. ..............................8 Policies..................................................................................................................... ..............................8 PROCEDURES................................................................................................................... ..............................9 General........................................................................................................................ ..............................9 Purchases and Changes to Purchases ......................................................................... ..............................9 Acquisition................................................................................................................... ..............................9 Rehabilitation............................................................................................................. .............................10 Homeownership......................................................................................................... .............................11 Demol ition.................................................................................................................. .............................11 LandBank ................................................................................................................... .............................11 Disposition.................................................................................................................. .............................12 Miscellaneous............................................................................................................. .............................12 PROGRAMINCOME ........................................................................................................ .............................13 APPROVAL...................................................................................................................... .............................13 2 CA INTRODUCTION Title III of Division B of the Housing and Economic Recovery Act of 2008(HERA), as amended, appropriated $3.92 billion for the redevelopment of abandoned and foreclosed homes and residential properties. The grant program established is commonly referred to as the Neighborhood Stabilization Program (NSP). Subsequently, the Wall Street Reform and Consumer Protection Act of 2010 (Dodd - Frank Act) appropriated an additional $1 billion to the program. NSP1 refers to the $7,306,755 appropriated to Collier County by HERA, while NSP3 refers to the $3,884,165 appropriated by the Dodd - Frank Act; Collier County's total NSP appropriation was $11,190,920. There are five (5) eligible uses for NSP1 and NSP3 (collectively NSP)'. They are as follows: 1. Eligible Use A a. Establish financing mechanisms for purchase and redevelopment of foreclosed upon homes and residential properties. 2. Eligible Use B a. Purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed upon, in order to sell, rent, or redevelop such homes and properties. 3. Eligible Use C a. Establish and operate land banks for homes and residential properties that have been foreclosed upon. 4. Eligible Use D a. Demolish blighted structures. 5. Eligible Use E a. Redevelop demolished or vacant properties as housing. Collier County will focus efforts in areas approved by the US Department of Housing and Urban Development (HUD). They include Golden Gate Estates, East Naples, Golden Gate City, and Naples Pa rkz. If any information, policy, or procedure contained herein conflicts with the NSP, the NSP shall take precedence. DEFINITIONS Certain terms used with the NSP are not used in the regular Community Development Block Grant (CDBG) program, or the terms are used differently. In the interest of clarity of administration, HUD has defined' these terms to assist grantees in operating the NSP. Abandoned A home or residential property is abandoned if either a) mortgage, tribal leasehold, or tax payments are at least 90 days delinquent, or b) a code enforcement inspection has determined that the property is not habitable and the owner has taken no corrective actions within 90 days of notification of the 1 Federal Register Docket Nos. FR- 5255 -N -01; FR- 5447 -N -01- 2 The areas are limited to specific census tracts and /or other boundaries within the general areas listed; not all homes within the target areas are eligible. Specific location information is available in the NSP1 and NSP3 Action Plans. a Federal Register Docket No. FR- 5447 -N -01. 3 C�� deficiencies, or c) the property is subject to court- ordered receivership or nuisance abatement related to abandonment pursuant to state or local law or otherwise meets a state definition of an abandoned home or residential property. Blighted Structure A structure is blighted when it exhibits objectively determinable signs of deterioration sufficient to constitute a threat to human health, safety, and public welfare. Furthermore, the grantee shall further define the definition of a blighted structure and include such definition in their NSP substantial amendment. Current Market Appraised Value The current market appraised value means the value of a foreclosed upon home or residential property that is established through and appraisal made in conformity with either: 1) the appraisal requirements of the URA at 49 CFR 24.103, or 2) the Uniform Standards of Professional Appraisal Practice (USPAP), or 3) the appraisal requirements of the Federal Housing Administration (FHA) or a government sponsored enterprise (GSE); and the appraisal must be completed or updated within 60 days of a final offer made for the property. Date of Notice of Foreclosure The date of notice of foreclosure shall be deemed to be that date on which complete title to a property is transferred to a successor entity or person as a result of an order of a court or pursuant to provisions in a mortgage, deed of trust, or security deed. If none of these events occur in the acquisition of a foreclosed property (e.g. in a short sale), in order to ensure fair and equitable treatment of a bona fide tenant(s) and consistency with the NSP definition of foreclosed, the date of notice of foreclosure shall be deemed to be the date on which the property is acquired for the NSP- assisted project. NOTE: This definition does not affect or otherwise alter the definition of "foreclosed ". Foreclosed A home or residential property has been foreclosed upon if any of the following conditions apply: a) the property's current delinquency status is at least 60 days delinquent under the Mortgage Bankers of America delinquency calculation and the owner has been notified; b) the property owner is 90 days or more delinquent on tax payment; c) under state, local, or tribal law, foreclosure proceedings have been initiated or completed; or d) foreclosure proceedings have been completed and title has transferred to an intermediary aggregator or servicer that is not an NSP grantee, contractor, subrecipient, developer, or end user. Land Bank A land bank is a governmental or nongovernmental nonprofit entity established, at least in part, to assemble, temporarily manage, and dispose of vacant land for the purpose of stabilizing neighborhoods and encouraging re -use or redevelopment of urban property. For purposes of NSP, a land bank will operate in a specific, defined geographic area. It will purchase properties that have been foreclosed upon and maintain, assemble, facilitate redevelopment of, market, and dispose of the land- banked properties. If the land bank is a governmental entity, it may also maintain foreclosed property that it does not own, provided it charges the owner of the property the full cost of the services or places a lien on the property for the full cost of the service. 4 G Subrecipient Subrecipient shall have the same meaning as at the first sentence of 24 CFR 570.500(0). This includes any nonprofit organization (including a unit of general local government) that a state awards funds to. Use (for the purposes of HERA section 2301(c)(1)) Funds are used when they are obligated by a state, unit of general local government, or any subrecipient thereof, for a specific NSP activity; for example, for acquisition of a specific property. Funds are obligated for an activity when orders are placed, contracts are awarded, services are received, and similar transactions have occurred that require payment by the state, unit of general local government, or subrecipient during the same or a future period. Note that funds are not obligated for an activity when subawards (e.g. grants to subrecipients or to units of local government) are made. Vicinity For the purposes of NSP3, HUD defines "vicinity" as each neighborhood identified by the NSP3 grantee as being the areas of greatest need. ACTIVITIES ACQUISITION4 Objective Provide permanent residential structures for persons or households whose income is at or below 120 percent of area median income. Policies 1. A current market appraisal will establish the value of properties that will be acquired. 2. The purchase price of all properties acquired shall be discounted at least one (1) percent from the current market appraisal value. 3. Acquisitions shall be made pursuant to a written Agreement for Sale and Purchase. 4. All residential property types are eligible for acquisitions. Examples include, but are not limited to, single - family units, multi - family units, and condominium units. ldelitifying Propei•ties Collier County will acquire properties in target areas approved by HUD. The approved areas are Golden Gate Estates, East Naples, Golden Gate City, and Naples Park, as further geographically defined and approved by HUD. Specifically, HUD has imposed the following geographic restrictions on the aforementioned areas: 1. Golden Gate Estates a. Census tracts i. 0104.14; 0104.13; 0104.12; 0112.02 4 24 CFR 570.201(a) Acquisition; (b) Disposition; (i) Relocation; (n) Direct homeownership assistance; 24 CFR 570.202. 5 Under NSP1, HUD permitted Collier County to define target areas by census tract. Under NSP3, HUD provided a "mapping tool" to define target areas. The NSP3 mapping tool assigned a "Neighborhood ID ", "latitude and longitude of corner points ", and "blocks comprising target neighborhood ". This information in contained in the applicable action plan and is available on colliergov.net /housing. 5 C.ri 2. East Naples a. Census tracts L 0105.04; 0106.02; 0106.01; 0106.04; 0106.03; 0105.02; 0108.01; 0107.02; 0108.02; 0108.03; 0111.01 b. Neighborhood ID: 3981140 3. Golden Gate City a. Census tracts L 0104.06; 0104.08; 0105.03; 0104.11; 0104.09; 0104.10; 0104.07 b. Neighborhood ID: 1108764 4. Naples Park a. Neighborhood ID: 1827545 When evaluating properties for acquisition, Collier County may seek to acquire properties that possess the following characteristics: a) require minimum structural rehabilitation, b) ability to convert to energy efficient housing, c) located in close proximity to centers of employment, d) located in close proximity to public transportation, and e) located in close proximity to other NSP- assisted properties. As NSP administrator, Housing, Human and Veteran Services, or any partner thereof, will acquire properties from banks, lenders, intermediary aggregators or servicers, or other entity that has a legal right to execute documents relating to the acquisition of properties identified by Collier County for participation in the NSP. All proposed acquisitions must be approved by the Director of Housing, Human and Veteran Services, or his /her designee, prior to executing a purchase contract. REHABILITATION6 Objective Improve residential structures to benefit persons or households whose income is at or below 120 percent area median income. Policies 1. Work performed must conform to the current Florida Building Code (FBC) and Environmental Health and Safety requirements. 2. Completed projects must meet or exceed the HUD Section 8 Minimum Housing Quality Standards. 3. A Collier County Rehabilitation Specialist will prepare a written bid specification or work plan for each property, itemizing the work required. 4. Gut rehabilitation? and new construction projects will seek to meet the following standards: a. Residential buildings up to three (3) stories to be designated to meet the standard for Energy Star Qualified New Homes; b. Mid- or high -rise multifamily housing to be designed to meet American Society of Heating, Refrigeration, Air - Conditioning Engineers (ASHRAE) Standard 90.1 -2004, Appendix G plus 20 percent (which is the Energy Star standard for multifamily buildings piloted by the Environmental Protection Agency and the Department of Energy); 5. All rehabilitation projects will seek to meet the following standards: 6 24 CFR 570.201(b) Disposition; (d) Clearance and remediation activities; 24 CFR 570.202. "Gut rehabilitation" is defined as the general replacement of the Interior of a building that may or may not include changes to structural elements such as flooring systems, columns, or load- bearing interior or exterior walls. 6 0 a. Older obsolete products and appliances (such as windows, doors, lighting, hot water heaters, furnaces, boilers, air conditioning units, refrigerators, clothes washers and dishwashers) to be replaced with Energy Star -46 labeled products; b. Water efficient toilets, showers, and faucets, such as those with the WaterSense label to be installed; c. Housing improved to mitigate the impact of disasters (e.g. hurricane, flooding, and fire). 6. Rehabilitated homes are subject to the minimum affordability provisions of the federal HOME Investment Partnership Programs. IiONdECI"UUNE SHIP 9 Objective Provide permanent housing to benefit persons or households whose income is at or below 120 percent area median income. Policies 1. Purchasers' household income, adjusted for family size, may not exceed 120 percent area median income. 2. Applicants must be pre - qualified by Housing, Human and Veteran Services prior to executing a contract for sale and purchase. 3. The head of household must be a U.S. citizen or permanent resident alien. 4. Applicants must receive and complete eight (8) hours of homebuyer counseling from a HUD - approved housing counseling agency. 5. Homes or residential properties sold to income - qualified persons or families must be used as the principal residence. 6. Purchasers will receive subsidy in the form of a principal reduction to increase the affordability of homes or residential properties assisted through the NSP. 7. Homes or residential properties are subject to the minimum affordability provisions of the federal HOME Investment Partnership Programl0. Objective Reduce blight through clearance, demolition, and removal of unsafe homes and residential structures. Policies 1. Demolition costs may not exceed ten (10) percent of Collier County's NSP allocation12, unless the Secretary of HUD determines that such use represents an appropriate response to local market conditions. 2. Homes or residential properties must be blighted, as defined in the Collier County NSP Action Plan, to be eligible for demolition. 6 24 CFR 92.252(a), (c), (e), and (f), and 92.254. 9 24 CFR 570.201(a) Acquisition; (b) Disposition; (i) Relocation; (n) Direct homeownership assistance; 24 CFR 570.202. 10 24 CFR 92.252(a), (c), (e), and (f), and 92.254. 1124 CFR 570.201(d) Clearance for blighted structures. 12 HERA sections 2301(c)(4)(C) and (D). 7 3. Demolished properties may be placed in a land bank for future redevelopment, or may be transferred to a provider of affordable housing. 4. Demolished homes or residential properties are subject to the minimum affordability provisions of the federal HOME Investment Partnership Program13 LAND BANK14 Objective Assemble, manage, and dispose of vacant land to stabilize neighborhoods and encourage re -use or redevelopment of urban property. Policies 1. Properties may be acquired in the specific, defined geographical areas contained in the Collier County NSP1 and NSP3 Action Plans. 2. Collier County may purchase properties that have been foreclosed upon and maintain, assemble, facilitate redevelopment of, market and dispose of land- banked properties. 3. Properties may not be held for more than ten (10) years without obligating the property for a specific, eligible redevelopment of that property in accordance with NSP requirements. 4. land- banked properties are subject to the minimum affordability provisions of the federal HOME Investment Partnership Program15 DISPOSITION16 Objective Convey homes assisted through the NSP to benefit persons or households whose income is at or below 120 percent area median income. Policies 1. Homes or residential properties that are purchased, redeveloped, or otherwise sold to an individual shall be sold in an amount equal to or less than the cost to acquire and redevelop or rehabilitate such home or property. Note that the maximum sales price for a property is determined by aggregating all acquisition, rehabilitation, and redevelopment costs (including related activity delivery costs, which generally may include, among other items, costs related to the sale of the property). 2. The net proceeds from the sale of properties assisted through the NSP by the County or its Subrecipients is considered program incomes' and will be used for additional NSP - eligible activities. 3. Ten (10) percent of the program income received following disposition will be used for general administration and planning costs1'. 4. Homes or residential properties conveyed are subject to the minimum affordability provisions of the federal HOME Investment Partnership Program19. 13 24 CFR 92.252(a), (c), (e), and (f), and 92.254. 14 24 CFR 570.201(a) Acquisition and (b) Disposition. 15 24 CFR 92.252(a), (c), (e), and (f), and 92.254. 16 24 CFR 570.201(b) Disposition. 17 Program income is defined at 24 CFR 570.500. is 24 CFR 570.205 -.206. 19 24 CFR 92.252(a), (c), (e), and (f), and 92.254. 8 t PROCEDURES General 1. The Board of County Commissioners approved the NSP1 and NSP3 Action Plans, and shall approve any proposed substantial amendments to such Action Plans. 2. HUD approved the NSP1 and NSP3 Action Plans, and shall approve any proposed substantial amendments to such Action Plans. 3. Housing, Human and Veteran Services shall administer the NSP. 4. All County departments, divisions, or sections assisting Housing, Human and Veteran Services will use the inter - department billing system to receive payment for service(s) rendered. Purchases and Changes to Purchases 1. All purchases under the NSP shall be in accordance with the provisions of the Collier County Purchasing Policy (hereinafter referred to as "the Purchasing Policy "), the Collier County Procurement Administration Manual (hereinafter referred to as "the Procedures Manual "), all applicable NSP grant provisions and, where applicable, all formal contracts pertaining to each purchase. 2. All purchases subject to the purview of the Purchasing Policy shall be authorized under a purchase order or a valid purchasing card utilized pursuant to the requirements of the Purchasing Policy and /or Collier County CMA 5808: Purchasing Card Program Policy and Procedure. 3. All changes to a formal, bilateral Collier County contract (whether it be under a single project or a fixed term agreement) shall be processed in accordance with the Purchasing Policy and the Procedures Manual. 4. All changes to a previously authorized purchase order shall be processed in the form of a purchase order modification requested by Housing, Human and Veteran Services from the Purchasing Department prior to authorizing the changes. 5. A purchase order modification shall be issued to authorize legitimate changes to the original scope of work identified in the purchase order including, but not limited to, changes in ordering quantities (products or services), changes in product specifications or service requirements, or changes due to unforeseen conditions. 6. In the event where a portion of the work solicited under a previously awarded purchase was deleted prior to award, a purchase order modification shall not be used to add the work back into scope unless it can be objectively determined from the prices received under the original competition that the modification would have had no impact on the outcome of the competition. 7. Purchase order modifications shall not be used to circumvent the competitive procedural requirements set forth in the Purchasing Policy or Procedures Manual. 8. Real Property Management may approve administratively contract extensions relating to real property acquisition and transfer. Acquisition 1. Housing, Human and Veteran Services will identify properties for acquisition through partnerships with other Collier County departments or divisions, non - profit agencies, or other housing providers. 2. Housing, Human and Veteran Services will conduct an initial evaluation of proposed acquisitions. 9 C �1C. 3. Real Property Management, or designee, will prepare a current market appraisal to establish the value of properties that will be acquired in conformance with the definition herein of "current market appraised value:' Service, or his /her designee, will approve offers o 4. The Director of Housing, Human and Veteran acquire properties. Thousand and 00/100 Dollars 5. Acquisition purchase prices shall not exceed One Hundred Fifty er consist of one ist of three (3} ($150,000.00) per residential dwelling unit. A single family residential u it and a multi- family (1) unit, a duplex consists of two (2) units, a triplex cons property may consist of any number of units greater than one (1) unit. 6. The Board of County Commissioners must specifically approve any acquisition purchase price in excess of the aforementioned limit. 7. Real Property Management, or designee, , illl r prepare a entity that has aalegal notice night tohexecute lender, intermediary aggregator or se v documents relating to the identified property informing such entity of Collier County's interest in acquiring such property on a voluntary basis. es 8. Agreements for Sale and PurchaVmenta { eowill prepared ev ewanand shall thercontain due diligencee and kshallckbe regarding marketable title, en approved by the County Attorney's Office for form and legal sufficiency. g. Agreements for Sale and Purchase will be executed by Collier County and the entity described above. The date of execution of any Agreement shall be the date that the final party signs, regardless of any contract language to the contrary. Interpretation of executed Agreements and other documentation shall be the exclusive responsibility of the County Attorney's Office. 10. The Chairman of the Board of County Commissioners is authorized to execute Agreements for Sale and Purchase for the acquisition of properties in accordance with the price limits described herein. 11. Real Property Management, or designee, will conduct all due diligence, including obtaining evidence of clear title from an approved vendor, and will coordinate with Housing, Human and Veteran Services to acquire the property. 12. Housing, Human and Veteran Services will perform an environmental review and document compliance with applicable grant requirements. 13. Housing, Human and Veteran Services will obligate the funds necessary to acquire the property. 14. Real Property Management, or designee, will coordinate final examinations of title and conduct or supervise the closing of acquisitions following appropriate closing procedures, and will supervise the recording of acquisition conveyances, and all documents necessary for title clearance in the Public Records of Collier County. Rehabilitation 1. Housing, Human and Veteran Services' Rehabilitation Specialist will perform a site inspection of acquired property and prepare a bid specification or work plan in order to solicit competitive price quotes. All of these solicitations (and any exceptions thereto) shall be conducted in accordance with the appropriate provisions of the Board's Purchasing Policy and the Procedures Manua{. 2. Purchases and changes to purchases shall be made in conformity with the procedures so named and detailed above. 3. Housing, Human and Veteran Services will recommend award of these projects to the lowest qualified and responsive vendor. Housing, Human and Veterans Services will submit a requisition to and receive a purchase order from the Purchasing Department before directing the vendor to proceed with any purchase. 10 4. Collier County will ensure vendors have access to the property. 5. Rehabilitation or redevelopment costs shall not exceed Fifty Thousand and 00/100 Dollars ($50,000.00) per residential unit. A single family residential property consists of one (1) unit, a duplex consists of two (2) units, a triplex consists of three (3) units and a multi - family property may consist of any number of units greater than one (1) unit. 6. The Board of County Commissioners must specifically approve any rehabilitation costs in excess of the aforementioned limit. 7. The Rehabilitation Specialist will supervise the rehabilitation or redevelopment until project completion. Homeownership 1. Housing, Human and Veteran Services' Housing Outreach Coordinator will pre - qualify persons interested in purchasing a home assisted through the NSP. 2. The Housing Manager, or his /her designee, will approve all applicants that are determined to be eligible for participation in the NSP. 3. Pre - qualified applicants will be provided a list of available homes. 4. Applicants will be served on a first - come - first - served basis once eligibility and readiness to purchase has been established. 5. Applicants will obtain financing that conforms to bank regulators' guidance for non - traditional mortgages as detailed in the NSP. 6. Purchasers will receive subsidy in the form of a principal reduction to increase the affordability of homes or residential properties assisted through the NSP. The subsidy amount may not exceed Fifty Thousand and 00/100 Dollars ($50,000.00). 7. The Board of County Commissioners must specifically approve any homeownership assistance in excess of the aforementioned limit. Demolition 1. Demolition will be contemplated when acquired properties are, a) blighted, and b) not economically feasible to rehabilitate. 2. The Rehabilitation Specialist will prepare documentation recommending demolition of the acquired property. 3. The Director of Housing, Human and Veteran Services, or his /her designee, will approve demolition of the structure. 4. Demolished properties may be placed in a land bank for future redevelopment, or may be transferred to a provider of affordable housing. 5. Demolition costs shall not exceed Twenty Five Thousand and 00/100 Dollars ($25,000.00) per residential unit. A single family residential property consists of one (1) unit, a duplex consists of two (2) units, a triplex consists of three (3) units and a multi- family property may consist of any number of units greater than one (1) unit. 6. The Board of County Commissioners must specifically approve any demolition costs in excess of the aforementioned limit. Land Bank 1. The Director of Housing, Human and Veteran Services, or his /her designee, will approve all land bank acquisitions, as well as the transfer of demolished property into the land bank. 2. Land- banked properties will be maintained (e.g. lawn maintenance) to conform with local codes, rules, and regulations. 11 3. Within ten (10) years of acquisition, Housing, Human and Veteran Services will obligate the property for a specific, eligible redevelopment of that property in accordance with NSP requirements. Disposition 1. Once rehabilitation or redevelopment is complete, properties will be prepared for disposition. 2. Housing, Human and Veteran Services will comply with the minimum disposition standards and procedures used by Collier County in selling and conveying real property acquired under the NSPZO. 3. The maximum sales price for a property is determined by aggregating all acquisition, rehabilitation, and redevelopment costs (including related activity delivery costs, which generally may include, among other items, costs related to the sale of the property). 4. The maximum final sales price will be the lesser of: a. The aggregate of all acquisition, rehabilitation, and redevelopment costs (including related activity delivery costs), minus $1,000.00, rounded to the nearest thousand22; or b. The appraised value established by a licensed third -party appraiser during the process of qualifying for first mortgage financing from a private financial institutionzs 5. The program income generated from the disposition shall be recognized by the Board of County Commissioners and used for additional NSP - eligible activities. Miscellaneous 1. Collier County successfully met the 18 -month obligation deadline for NSP1. 2. HUD requires Collier County to expend NSP3 funds in a timely manner. Specifically, the following expenditure deadlines were imposed as a condition of award: a. Expend 50 percent of NSP3 funding by March 11, 2013 b. Expend 100 percent of NSP3 funding by March 11, 2014 3. Pursuant to the rules and regulations of the NSP, no less than 25 percent of the initial Collier County award must be used to benefit households earning not greater than 50 percent area median income. 4. The NSP1 grant number is B- 08 -UN -12 -003 and the allocation was $7,306,755. 5. The NSP3 grant number is B- 11 -UN -12 -003 and the allocation was $3,884,165. 6. The NSP Catalog of Federal Domestic Assistance (CFDA) number is 14.218. 7. The Collier County Data Universal Number System (DUNS) identification number is 076997790. 20 Collier County Ordinance No. 2009 -63. 21 The final sales price procedure is established to ensure that Collier County does not sell a property for an amount greater than the aggregate NSP investment, thus exposing the County to a potential audit finding. 22 For example, the aggregate NSP investment in a project is determined to be $147,518.25. The final sales price would be calculated as follows: aggregate investment ($147,518.25) minus voluntary reduction ($1,000.00) equals $146,518.25, rounded down to the nearest thousand equals final sales price of $146,000.00. 23 When qualifying for first mortgage financing from a private financial institution, such institution will determine the maximum financing available based on the appraised value or purchase price, whichever is less. For example, If Collier County invested $147,518.25 in a project that appraised for only $130,000.00, the maximum first mortgage financing would be based on the appraisal value. Although underwriting guidelines vary from lender to lender, it is generally true that the maximum loan -to -value available to purchasers will range from 80 percent of appraised value to 97 percent of appraised value. 12 �N PROGRAM INCOME24 Revenue received by Collier County that is directly generated from the use of CDBG funds (which term includes NSP grant funds) constitutes program income. On June 11, 2009, HUD issued a revised notice 25 implementing substantive revisions to the October 6, 2008 notice, primarily as a result of changes to the NSP made by Title XII of Division A of the American Recovery and Reinvestment Act of 2009. The effective date of the substantive revisions, as determined by HUD, remained as published in the Federal Register on October 6, 2008. Section 2301(d)(4) of HERA, which established requirements for the disposition of revenue generated by NSP assisted activities, was repealed by the Recovery Act. As a result of this repeal, revenue generated from the use of NSP funds and received by a private individual or other entity that is not a subrecipient is not required to be returned to grantee as was required by section 2301(d)(4). A further result of this provision is that program income received after July 30, 2013 is not required to be returned to HUD for deposit in Treasury. However, the program income requirements of the CDBG program are still applicable to income directly generated from the use of NSP funds and received by grantees or subrecipients. Program income received may be retained by Collier County and treated as additional NSP funds and used in accordance with NSP regulations. Substantially all program income must be disbursed for eligible NSP activities before additional cash withdrawals are made from the U.S. Treasury. HUD allows Housing, Human and Veteran Services to use ten (10) percent of the NSP grant and ten (10) percent of program income earned for general administration and planning activities. APPROVAL This NSP Administrative Plan replaces the existing Plan approved by the Board of County Commissioners on March 24, 2009, amended October 27, 2009, further amended June 28, 2011, and shall be used in the administration of NSP1 and NSP3. Adopted this 251h day of June, 2013. ATTEST DWJ E f8R ©( CXLERK B: — Sf.a VUTY CLERK AND LEGALITY BY: 0, " . JENNIFER BELPEDI ASSISTANT COUNTY ATTORNEY 24 24 CFR 570.500. 25 Docket No. FR- 5255 -N -02. 13 BOA D OFr UN COMMISSIONERS COLL ER TY FLORIDA BY: GEORGIAW.. HILLER, ESQ CHAIRWOMAN