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Agenda 10/11/2016 Item #16F7 16.F.7 10/11/2016 EXECUTIVE SUMMARY Recommendation to authorize the County Attorney to advertise for future consideration an Ordinance amending Chapter 74 of the Collier County Code of Laws and Ordinances,which is the Collier County Consolidated Impact Fee Ordinance, to provide for an amendment to Section 74- 401 to allow impact fee deferrals for all owner-occupied dwelling units to include automatic subordination to the owner's first mortgage. OBJECTIVE: To authorize the County Attorney to advertise an amendment to the Impact Fee Ordinance to allow impact fee deferrals for all owner-occupied units to include automatic subordination to the owner's first mortgage. CONSIDERATIONS: Section 74-401 of the Collier County Code of Laws and Ordinances provides for impact fee deferrals subject to specified procedures and conditions which include automatic subordination to the owner's first mortgage for owner-occupied, single-family detached residences or duplexes. Several deferral applications have recently been submitted for owner-occupied, multi-family units. Currently,the Code does not allow for deferral agreements to include automatic subordination to the first mortgage for this type of dwelling. Staff has been informed by developers, applicants, and lenders that banks and mortgage lenders will not approve mortgages for these properties without subordination to the first mortgage. This amendment will provide an opportunity for those otherwise qualified applicants to participant in the Countywide Impact Fee Deferral Program. FISCAL IMPACT: Impact fee deferrals are limited to an amount of no more than three (3%) of prior year impact fee collections. This change allows for an additional type of unit to be able to participate in the program but will not change the total allowable amount deferred, therefore, there is no fiscal impact associated with this amendment. The cost to advertise the proposed Ordinance is approximately$400.00. GROWTH MANAGEMENT IMPACT: This amendment will further the Goals, Objectives, and Policies within the Housing Element of the Growth Management Plan. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as to form and legality,and requires majority support for approval. -JAK RECOMMENDATION: To authorize the County Attorney to advertise for future consideration an Ordinance amending Chapter 74 of the Collier County Code of Laws and Ordinances to provide for an amendment to allow impact fee deferrals for all owner-occupied dwelling units to include automatic subordination to the owner's first mortgage. Prepared by: Paula Fleishman, Senior Operations Analyst Capital Project Planning,Impact Fees and Program Management Division Growth Management Department ATTACHMENT(S) 1.Ordinance-Amendment to Impact Fee Ordinance (PDF) Packet Pg. 2023 16.F.7 10/11/2016 COLLIER COUNTY Board of County Commissioners Item Number: 16.F.7 Item Summary: Recommendation to authorize the County Attorney to advertise for future consideration an Ordinance amending Chapter 74 of the Collier County Code of Laws and Ordinances, which is the Collier County Consolidated Impact Fee Ordinance, to provide for an amendment to Section 74-401 to allow impact fee deferrals for all owner-occupied dwelling units to include automatic subordination to the owner's first mortgage. Meeting Date: 10/11/2016 Prepared by: Title: Legal Assistant/Paralegal—County Attorney's Office Name: Virginia Neet 10/03/2016 12:03 PM Submitted by: Title: Division Director-Corp Fin&Mgmt Svc—Budget and Management Office Name: Mark Isackson 10/03/2016 12:03 PM Approved By: Review: County Attorneys Office Jeffrey A.Klatzkow Level 3 County Attorneys Office Review Completed 10/03/2016 12:08 PM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 10/03/2016 2:58 PM Budget and Management Office Mark Isackson Additional Reviewer Completed 10/03/2016 3:03 PM County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 10/03/2016 10:33 PM Board of County Commissioners MaryJo Brock Meeting Pending 10/11/2016 9:00 AM Packet Pg. 2024 16.F.7.a ORDINANCE NO.2016- AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, AMENDING CHAPTER 74 OF THE COLLIER COUNTY CODE OF LAWS AND ORDINANCES (BEING THE COLLIER COUNTY CONSOLIDATED IMPACT FEE ORDINANCE, NO. 2001-13, AS AMENDED) PROVIDING FOR AN AMENDMENT TO SECTION 74-401 TO ALLOW IMPACT FEE as DEFERRALS FOR ALL OWNER-OCCUPIED DWELLING UNITS TO INCLUDE SUBORDINATION TO THE OWNER'S FIRST MORTGAGE; PROVIDING FOR INCLUSION IN THE CODE OF CD LAWS AND ORDINANCES; AND PROVIDING FOR CONFLICT AND w SEVERABILITY. rtS E WHEREAS, Collier County uses impact fees to supplement the funding of necessary o capital improvements required to provide public facilities to serve new population and related development that is necessitated by growth in Collier County; and WHEREAS, on March 13, 2001, the Board of County Commissioners adopted Ordinance No. 2001-13, the Collier County Consolidated Impact Fee Ordinance, repealing and (71 superseding all of the County's then existing impact fee regulations, and consolidating all of the a) County's impact fee regulations into that one Ordinance, codified in Chapter 74 of the Collier County Code of Laws and Ordinances(the"Code");and f_ WHEREAS, affordable housing is a priority in Collier County and Sections 74-401 and LL 74-402 in Chapter 74 of the Collier County Code of Laws and Ordinances provide for Impact Fee Deferrals granted by the Board of County Commissioners subject to specified procedures 0 and conditions; and WHEREAS, the Impact Fee Deferral Program for owner-occupied affordable housing deferrals was suspended in 2009 and was reinstated on June 23,2015. WHEREAS, staff is recommending, and this Board agrees, to amend the Code to allow impact fee deferrals for all owner-occupied dwelling units to include subordination to the owner's first mortgage. -a 0 w NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY,FLORIDA,that: Underlined text is added;ugh text is deleted Packet Pg.2025 16.F.7.a SECTION ONE. Article IV. Affordable Housing Impact Fee Deferral, Section 74-401, Impact fee deferral, of the Collier County Code of Laws and Ordinances is hereby amended to read as follows: Section 74-401. Impact fee deferral *** O (1) .•-: _ .. , - -•.- -• _ . - - - . . - - . Subordination. Impact fee deferrals for u_ • • • - ••• , • -•• - - - •- -• -- , . • • . - - , . all owner occupied dwelling 0_ units, will automatically be subordinate to the owner's first mortgage and/or any government funded affordable housing loan such as SAIL or HOME loan. Impact fee c' deferrals may also be similarly subordinated in the case of rental dwelling units; -0 - .• . • - - _ •..• , but only if the owner provides additional cash E equivalent fmancial instruments which will yield the full amount of the deferred impact fees when they may become due and payable. This provision requiring additional security is not applicable to community workforce housing innovation pilot program (CWHIP projects. *** d u. N v cC SECTION TWO. CONFLICT AND SEVERABILITY. In the event this Ordinance conflicts with any other Ordinance of Collier County or other applicable law,the more restrictive shall apply. If any phrase or portion of this Ordinance is held E invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct, and independent provision and such holding shall not affect the validity of the remaining portions. cc SECTION THREE. INCLUSION IN THE CODE OF LAWS AND ORDINANCES. The provisions of this Ordinance shall be made a part of the Code of Laws and Ordinances of Collier County, Florida. The sections of the Ordinance may be renumbered or re- lettered and internal cross-references amended throughout to accomplish such, and the word "ordinance"may be changed to"section,""article,"or any other appropriate word. Underlined text is added;Struck Uxeugh text is deleted Page 2 of 3 Packet Pg. 2026 16.F.7.a SECTION FOUR. EFFECTIVE DATE. This Ordinance shall be considered adopted upon the date written below. PASSED AND DULY ADOPTED by the Board of County Commissioners of Collier c) U County,Florida this day of ,2016. as c L O CI) CD ATTEST BOARD OF COUNTY COMMISSIONERS Dwight E. Brock, Clerk OF COLLIER COUNTY,FLORIDA U. E 0 By: By: c ,Deputy Clerk DONNA FIALA, Chairman c c Q Approv,i.. as . ;,i.•-••.• legality: C° l , c Jeffrey ow = i County . 'aby o m a> u.U C6 tQ. O c d c C) a U c (a c L O c a) U CO e� Q Underlined text is added;Struelk-through text is deleted Page 3 of 3 Packet Pg. 2027