Agenda 06/23/2015 Item #11D6/23/2015 11. D.
EXECUTIVE SUMMARY
Recommendation to adopt the Affordable/Workforce Housing Population Based Index Model
Methodology, reinstate the suspended Impact Fee Deferral Program for single family residences, and
retain previously approved density bonus units in Planned Unit Developments, and direct staff to
bring back parameters on Gap Housing.
OBJECTIVE: To provide affordable /workforce housing in the County and to further the goals set forth
in the Housing Element of the GMP.
CONSIDERATIONS: On March 3, 2015 an affordable /workforce housing workshop was conducted.
This item is to implement the direction given at the end of that workshop to bring forth three items for
consideration.
Affordable/Workforce Housing Population Based Index Model Methodology
Through a cooperative partnership between the Affordable Housing Advisory Committee, Community
and Human Services Division, and Comprehensive Planning Section in the Growth Management
Department, the Housing Element of the Growth Management Plan was amended as part of the
Evaluation and Appraisal Report based amendments in 2013 to require development of a method
of indexing the demand, availability and cost for affordable /workforce housing throughout the County.
The Housing Index Model is meant to replace the fixed number previously identified in the Housing
Element to construct 1,000 affordable /workforce housing units each year to meet the County's demand
for affordable /workforce housing units.
At the affordable /workforce housing workshop staff presented an Affordable /Workforce Housing
Population Based Index Model Methodology. Population was determined to be the main driver that is
quantifiable and commonly utilized to project future demand for affordable /workforce housing. The
methodology is a simple model based on population growth (projected gross future demand), less the
available inventory (homeownership and rental units), which provides the projected need for future
affordable /workforce housing units. The key secondary factors are area median income, housing prices,
persons per household and the housing opportunity index which trends the affordability of
homeownership in our community. These, and possibly other relevant data, will be reviewed periodically
with summary reports and applicable recommendations made to the Board. There was general consensus
that the population based methodology was an acceptable model during the workshop discussions.
Reinstatement of the Impact Fee Deferral Pro2�'am for single family affordable housing
The second item presented for approval is reinstatement of the Impact Fee Deferral Program for single
family affordable housing. Based on the economic downturn, the Board suspended the program as
outlined in Article IV — Affordable Housing Impact Fee Deferral, Section 74-401 through 74 -403 of the
Collier County Code of Laws and Ordinances. When the program was active it deferred the impact fee
cost until a later date. This deferral allowed the housing unit cost to be reduced, thus allowing the unit to
be more affordable. The deferred impact fee amount plus interest was intended to be repaid at a future
date and the criteria are outlined in the Section 74.401(d).
The parameters of the deferral program are outlined in Section 74.401. The highlights of the deferrals are:
1. Total cumulative deferrals shall not exceed 3% of the previous years' total impact fee collections.
Historically, Water and Sewer Impact Fees were not deferred under this program unless an
alternative revenue source was identified to fund such deferrals.
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6/23/2015 11.D.
2. Deferrals are available to qualifying, first -time homebuyers and must be the homestead of
the owner(s).
3. Deferrals are provided on a first -come, first -served basis.
4. Deferrals are secured with a lien on the property.
5. Repayment is required upon sale, transfer, refinance or loss of homestead.
Affordable /workforce housin_ units in Planned Unit Developments
From time to time, the developers /applicants request a PUD amendment which can include a reduction or
elimination of previously approved affordable /workforce housing units; whether via an approved
Affordable Housing Density Bonus Agreement, or by other means. While the Board will retain its
authority to amend PUD's as allowed by the Land Development Code, it is recommended that the Board
retain affordable /workforce housing units. This would contribute to a higher level of
affordable /workforce housing in our community.
Gap Housing
Direct staff to work with the Affordable Housing Advisory Committee, Growth Management staff, and
any and all interested parties to bring forth options to further encourage or require Gap Housing in Collier
County.
FISCAL IMPACT: The proposed actions described in this executive summary have no new
fiscal impact, except for the reinstatement of the Impact Fee Deferral Program which will reduce the
available funding for growth- related capital improvements for the term of the deferrals. The program is
limited to 3% of the prior year (total) impact fee revenue which would have resulted in a
potenti al loss of up to $800,000 based on FY 2014 collections. This amount will fluctuate in future
fiscal years based on market conditions and permitting activity.
Based on the limit of 3% of prior year's collections, approximately 47 owner - occupied deferrals could be
available in FY 2015, if the program is reinstated.
LEGAL CONSIDERATIONS• This item is approved for form and legality and requires a
majority vote for Board approval. -JAB
GROWTH MANAGEMENTIMPACT: Acceptance of the affordable /workforce projection model
furthers the Goals, Objectives, and Policies of the Growth Management Plan and specifically the
Housing Element.
RECOMMENDATION: That the Board of County Commissioners: (1) adopt the Affordable /Workforce
Housing Population Based Index Model Methodology, (2) reinstate the suspended Impact Fee Deferral
Program for single family residences, and (3) retain previously approved density bonus units in Planned
Unit Developments, and (4) direct staff to bring back parameters for Gap Housing guidelines, regulations,
and initiatives for Board consideration.
Prepared By: Elly Soto McKuen, Senior Grant and Housing Coordinator
Attachments: (1) Affordable /Workforce Housing Population Based Index Model Methodology, (2)
Impact Fee Deferral Regulations
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COLLIER COUNTY
Board of County Commissioners
Item Number: 11.11.D.
Item Summary: Recommendation to adopt the Affordable /Workforce Housing Population
Based Index Model Methodology, reinstate the suspended Impact Fee Deferral Program for
single family residences, and retain previously approved density bonus units in Planned Unit
Developments, and direct staff to bring back parameters on Gap Housing.
Meeting Date: 6/23/2015
Prepared By
Name: AlonsoHailey
Title: Operations Analyst, Public Services Department
5/28/2015 10:43:16 AM
Approved By
Name: AlonsoHailey
Title: Operations Analyst, Public Services Department
Date: 5/28/2015 10:51:59 AM
Name: GrantKimberley
Title: Division Director - Cmnty & Human Svc, Public Services Department
Date: 5/28/2015 12:17:18 PM
Name: PattersonAmy
Title: Manager - Impact Fees & EDC, Growth Management Department
Date: 6/2/2015 9:02:32 AM
Name: BelpedioJennifer
Title: Assistant County Attorney, CAO General Services
Date: 6/2/2015 11:41:38 AM
Name: CarnellSteve
Title: Department Head - Public Services. Public Services Department
Date: 6/2/2015 3:08:25 PM
Name: KlatzkowJeff
Title: County Attorney,
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Date: 6/2/2015 4:05:54 PM
Name: FinnEd
6/23/2015 11. D.
Title: Management/Budget Analyst, Senior, Office of Management & Budget
Date: 6/11/2015 11:23:37 AM
Name: Casa] anguidaNick
Title: Deputy County Manager, County Managers Office
Date: 6/16/2015 9:00:07 AM
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6/23/2015 11. D.
METHODOLOGY
Affordable Hou sing Advisory Committee and
Collier County Community and Human Services
Kimberley Grant, Director
june 23, 2015
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6/23/201 5 1 1. D.
Background and Purpose
Through a cooperative partnership between the Affordable Housing Advisory
Committee (AHAC), Collier County Community and Human Services (CHS) [formerly Housing,
Human and Veteran Services] and Comprehensive Planning in the Growth Management
Division, the Housing Element of the Growth Management Plan was amended during the
Evaluation and Appraisal Report in 2012 to require development of a method of indexing the
demand, availability and cost for affordable /workforce housing throughout the County. The
Housing Index Model is meant to replace the arbitrary number previously identified in the
Housing Element to construct 1,000 affordable /workforce housing units each year to meet the
County's demand for affordable /workforce housing units. The outcome is to meet the following
Goals, Objectives and Policies of the Housing Element:
Goal 1: To create an adequate supply of decent, safe, sanitary and affordable /workforce
housing for all residents of Collier County.
Objective 1: Provide new affordable housing units in order to meet the current and
future housing needs of legal residents with very low, low and moderate and affordable
workforce incomes, including households with special needs such as rural and
farmworker housing in rural Collier County.
Policy 1.1: The Department of Housing, Human and Veteran Services (now CHS)
shall establish a method of indexing the demand for very low, low, moderate and
affordable workforce housing.
Policy 1.2: The Department of Housing, Human and Veteran Services (now CHS)
shall establish a method of indexing the availability and costs of very low, low,
moderate and affordable workforce housing.
Policy 13: The Department of Housing, Human and Veteran Services (now CHS)
shall develop methods to predict future need, based on the Indexes established
in Policies 1.1 and 1.2 above.
Policy 1.4: The Department of Housing, Human and Veteran Services (now CHS)
shall establish necessary strategies, methods and tools to support this Objective.
Based upon the outcome of the predictive model, response strategies will be made
available to decision makers to consider in attempting to meet the needs identified. For
instance, if a large need was identified, the decision makers may wish to activate certain
development incentives in order to encourage the development of additional
affordable /workforce housing.
Corr Foodel: Popuiation Based
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6/23/2015 11. D.
Population is the main driver that is quantifiable and commonly utilized to project
future demand for affordable /workforce housing'. The key secondary factors are area median
income, housing prices, persons per household, and the Housing Opportunity Index. The
objective is to create a simple model based on accepted principles and available and validated
data. The population based model is a very simple model, as shown below.
Population Based Model Formula
Projected Gross Future Demand
Less:
Available inventory
(owner occupied and rental)
Results in:
Projected Net Future Demand
And the next chart shows a sample projection using currently available and validated
data and following the approved growth management planning premises.
1 Affordable Housing Needs Assessment, Population and Household Projection Methodology, Prepared by the
Shimberg Center for Affordable Housing, Rinker School of Building Construction, College of Design, Construction
and Planning, University of Florida, September 2006
3
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rro c`Lec_ c—t L e `ia i ' J "cf. 4 x; ,.rc L, ai,e� o r s.Enc -- "F"._..202-�".�_
A. 2015 Est. B. Net " ":
_C.'Net Pop . C1. Net pop D. #. of NEW
County Population
Growth _ . divided by 3, HH needing
Population - Growth
(persons) persons per affordable,
Percent =`
between 2015 household to workforce
Annual
and 2016 determine # housing in
•
�.. ___- _ - -" .... (Match GMD) ._
._ ____. of..13H .... __ . 2016_ ( <120%
350,286 1.02%
3,573 1,191 701
Y� I 71
i d 4P El A.
[ 7,,
yy
...x .. ... .- .. <..n,1..,. .... .�.. ......,.. �. m�.s... ha.. .w .. Fay..� "a.. ..... ,. v.. ...e ..v...... ,...� �,..... -.,t .... x.. ...Lk. J.r � w..
Gross Demand
Gross Demand
Rental Housing Units
Owned Housing Units
..sr
a, 1173
428
Vacancy Rate
LESS NABOR Single Family & Condo
Inventory(<s2oc,K)
Le'
DF'op AYES
Net Projected Demand: Rental Net Projected Demand: Owned
273
-0-
ff >o a ciedluct pee-mined
1 Affordable Housing Needs Assessment, Population and Household Projection Methodology, Prepared by the
Shimberg Center for Affordable Housing, Rinker School of Building Construction, College of Design, Construction
and Planning, University of Florida, September 2006
3
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6/23/2015 1 1.D.
Once the model is in use additional data sources may be explored to continue to refine
the information and provide a current and local viewpoint. All sources will be disclosed when
the information is presented for review and consideration.
Calcuiation Elernents
The model uses the HUD standard income categories based on AM 12 and assumes those
persons earning 120% of AMI and above can compete in the marketplace for housing.
Therefore, the need for additional affordable /workforce housing will be centered on those
households earning less than 120% of AMI.
The population is projected forward one year at the growth factor used by
Comprehensive Planning in the Growth Management Division (currently 1.02 %). Further, for
planning purposes, it is assumed those making less than 50% AMI are in need of rental units,
and those earning more than 50.1% of AMI could qualify for homeownership; with recognition
there are many that cross one way or the other, yet this is a reasonable basis for planning.
The gross demand for 2016 in this sample is a need for 428 owned units and 273 rental
units. From this, we deduct available inventory, using currently available data such as NABOR
listings and Southwest Florida Apartment Association vacancy rate data, resulting in a net
demand for 2016 for -0- owned units and 273 rental units.
When in operation, the Board of County Commissioners would be presented with the
projected need as well as a set of recommendations to consider in order to meet the future
need identified.
It is recognized that population changes alone may not determine the need for
affordable /workforce housing. It is commonly held that market conditions and income
conditions greatly impact the availability of housing in general, and more specifically,
affordable /workforce housing.2 Through extensive research and discussion, additional
supplemental data and facts that affect the need for affordable /workforce housing have been
identified. Such factors as the Housing Opportunity Index, cost burdened rates of households,
occupancy rates, and housing prices were examined. When the model is in operation,
additional supplemental information may become available to reference.
z Reforming America's Housing Finance Market, A Report to Congress, US Department of the Treasury and US
Department of Housing and Urban Development, February2011
4
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The Housing Opportunity Index
The published National Association of Home Builders Wells Fargo Housing Opportunity
Index (HOI) is a very relevant data set to review and consider because it is a reliable indicator of
overall affordability of housing in our community available to the households earning 100%
AMI. This is presented as meeting the requirements under Policy 1.1 and 1.2 noted earlier. As
shown in the graphic illustration below, in simple terms, when income stays the same and the
housing prices go up, affordability is decreased. Due to the nature of the recent drastic housing
market fluctuations, the chart illustrates that following this data on a real time basis can be an
indicator of demand for and availability of additional affordable /workforce housing units in our
community.
TV V $370K
Housing
350 -- — A era9 - - - -- — -- -- - --
0]2pOTtunitV
Median
Housing -- Index
300 - - -- - - -- _ -.— - - - --
Price - Sold
$257K
250
200
150
r
- AM I-
1oo
S65K
50 . 67.5 -_
HOI
o'
O p p
0 0 0
N N N
72.8K $62.9K
k.� T
0 0 0 0 0 0 0
N N N N N N N N N
Source: Wells Fargo HOI
S2
C o
N N
The HOI is defined as the "share of housing sold in the area that would have been
affordable to a family earning local median income based on standard mortgage underwriting
criteria (assumes 30% of gross income is spent on housing with 10% down payment)i3. For
income, County staff uses the annual median family income estimates for the Naples /Marco
Island Metropolitan Area published by the US Department of Housing and Urban Development
3 Source: National Association of Home Builders -Wells Fargo Housing Opportunity Index based on information
provided from sales transaction records from Core Logic. The data includes information on state, county, date of
sale and sales price of homes sold.
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6/23/2015 11. D.
(HUD). If the H01 is over 50, the County is deemed to have sufficient availability for those
households earning 100% of the AMI. Following this is very useful to identify and react to
trends.
Coast Burdened Levels
There is information that indicates certain households are "cost burdened ,4 or "severely
cost burdened" in our county5. Housing cost burden reflects the percent of income paid for
housing by each household living in a geographic area. Based on recent US Census Bureau
survey's, the number and percent of households paying more than thirty percent (30 %) of their
income for housing are reported for communities with populations of 20,000 or more.
Households spending more than 50 percent are considered to be "severely cost - burdened."
Housing is generally considered to be affordable if the household pays less than 30 percent of
income.6 The below graphic represents the cost burdened situation for Collier County.
Spend
more
than 50`,
Spend
30.1-50%-/
Income Spent
ing
'Schimberg 2015 HH projections
spend
0% or
less
As indicated in the following chart, the wages of many workforce positions are
insufficient to afford the rental rates in Collier County.
4 HUD defines "cost burdened" as a household paying more than 30% of their annual income for a mortgage
payment.
5 HUD defines "severely cost burdened" as a household paying more than 50% of their annual income for a
mortagepayment
6 Florida Housing Data Clearinghouse, Shimberg Center for Housing Studies, University of Florida derived from
figures produced from University of Florida Bureau of Economic and Business Research
C
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6/23/2015 11.D.
Rental Rates Out of Line with Incomes
Income Required to Afford Rents
$90,000
$80,000
$70,000
$6o,000
$50,000
$40,000
$30,000
$20,000
$10,000
� � q t`' po• t5 °t . eS e5' c°' . oS et G..
c° ec z comet,
4 o c
Source: Florida Jobs.crg OES Occupational Employment Statistics
FRIesponuing to the Model and Model Operations
While the core model is population based, decisions concerning the need for additional
affordable /workforce housing are not one dimensional. Therefore supplemental information
will also be provided for consideration. Semi - annually, the model will be updated and the
supplemental factors already noted will be reviewed. In addition, it is envisioned that the semi-
annual review would also include other relevant factors and data that emerges over time.
The ultimate objective is to determine whether there is a gap between the need and
availability of affordable /workforce housing; then determine what actions will be taken to close
the gap. Should there be a gap, the most likely recommendations would be to activate, re-
activate or modify the various incentives available in our community (Appendix 8 details the
existing incentives.) It is certainly also possible that new incentives or programs may be
recommended or developed in response the identified need.
The AHAC, staff and members of the public are beginning to work on a set of
recommendations (referred to as a tool -kit) of potential incentives, programs, or regulation
that can be deployed in response to the needs identified in the population based model and the
supplemental information reviewed.
Recommendation
The working group recommends use of the population based core model and review of
supplemental information as presented herein as the first generation affordable /workforce
housing index model.
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ARTICLE IV. - AFFORDABLE HOUSING IMPACT FEE DEFERRAL
FOOTNOTE(S):
- -- (2) - --
Editor's note— Section 4 of Ord. trio. 2005 -40 retitled art. IV to read as herein set out. Formerly, said
article was entitled affordable housing impact fee waiver or deferral.
Sec. 74 -401. - Impact fee deferral.
(a) Applicability.
(1) Pursuant to the requirements established in this section and article IV, the county shall defer the
payment of the impact fee for any new owner - occupied or rental development which qualifies as
affordable housing under this article.
(2) Any person seeking an affordable housing deferral for proposed development shall file with the
county manager an application for deferral, prior to receiving a building permit for the proposed
development. The application for deferral shall contain the following:
a. The name and address of the applicant;
b. An up to date, complete legal description of the site upon which the development is
proposed to be located;
c. The maximum income level of the owner, or if the owner is a developer or builder, the
income level of the household to which the dwelling unit it to be sold or provided for
occupancy;
d. The square footage and number of bedrooms in each dwelling unit of the development.
(3) If the proposed development meets the requirements for an affordable housing deferral as set
forth in this article, the county manager may, but is not required to, enter into an impact fee
deferral agreement and is authorized to execute such deferral agreements along with any
corresponding tri -party agreement intended to further define repayment obligations, as may be
applicable, with the owner or applicant. The impact fee deferral agreement shall be accepted by
the county in lieu of prompt payment of the impact fee that would otherwise then be due and
payable but for the agreement.
(4) Unless specifically provided to the contrary by majority action of the board, such as by an
agreement or condition of development, water and sewer impact fees are fully exempt from all
rental and CWHIP impact fee deferral programs.
(b) Qualifying owner - occupied dwelling. To qualify for an affordable housing impact fee deferral, an
owner- occupied dwelling unit must meet all of the following criteria:
(1) The owner(s) or anticipated owner(s) of dwelling unit must have a very low, or moderate income
level, at the time of final execution by the county of a deferral agreement as those income level
terms are defined in section 74 -402.
(2) The monthly mortgage payment, including taxes and insurance, must not exceed 30 percent of
that amount which represents the percentage of the median annual gross income for the
applicable household category as indicated in section 74 -702. However, it is not the intent to
limit an individual household's ability to devote more than 30 percent of its income for housing,
and housing for which a household devotes more than 30 percent of its income shall be
deemed affordable if the first institutional mortgage lender is satisfied that the household can
afford mortgage payments in excess of the 30 percent benchmark.
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(3) A dwelling unit shall qualify as "owner- occupied" if:
a. a written affirmation from the developer to the county guarantees that the requisite
affordable housing units will be constructed, and
b. the affirmation is in effect at the date of execution of the impact fee deferral agreement by
the county, and
c. within six months from the date of issuance of the certificate of occupancy or the execution
of the affirmation, whichever is later, any option to purchase is exercised and the purchaser
takes ownership of the dwelling unit.
(4) If the purchaser fails to purchase the dwelling unit within the six -month period, then:
a. the deferred impact fee is considered in default as of the date that the fee would have been
due without the deferral; and
b. the applicant shall pay all of the impact fees, including delinquency fees and interest dating
back to the date that the fees would have been assessed but for the deferral as provided in
section 74 -501.
(5) The owner, or if there is more than one owner, both of the owners, must be a first -time home
buyer. To qualify as a first -time home buyer, the owner must not have had an ownership interest
in his /her primary residence in the past three years.
(6) The dwelling unit must be the homestead of the owner(s). The owner(s) of the dwelling unit
must be at least 18 years of age and must be either citizen(s) of the United States or be a legal
alien who permanently resides in the United States. Proof of United States Citizenship or
permanent legal residency must be established to the county's sole satisfaction. The dwelling
unit must be granted a homestead tax exemption pursuant to Chapter 196, Florida Statutes.
(7) No more than 50 deferral agreements are permitted at any single time for an individual
developer, or for any developments that are under common ownership. For purposes of this
subsection, "common ownership" means ownership by the same person, corporation, firm,
entity, partnership, or unincorporated association; or ownership by different corporations, firms,
partnerships, entities, or unincorporated associations, in which a stockbroker, partner, or
associate, or a member of his family owns an interest in each corporation, firm, partnership,
entity, or unincorporated association.
(c) Qualifying rental and community workforce housing innovation pilot program (CWHIP) dwellings.
(1) To qualify for an impact fee deferral, a dwelling unit offered for rent must meet all of the
following criteria:
a. The household renting the dwelling unit, including any multifamily dwelling unit, must have
a very low or low income level, at the commencement of the leasehold and during the
duration thereof, as those terms are defined in section 74 -402.
b. The dwelling unit must be and must remain the household's permanent residence. The
head of the household must be at least 18 years of age and must be either a citizen of the
United States or be a legal alien who permanently resides in the United States.
C. In no instance shall rental limits exceed the rental limits established by the Florida Housing
Finance Corporation for rents adjusted to bedroom size in projects assisted under the,
Florida Housing Finance Corporation or any other local, state, or federal agency, based on
unit size.
(2) To qualify for an impact fee deferral, a CWHIP dwelling must meet all of the following criteria:
a. The residential development must meet all requirements pursuant to F.S. § 420.5095, (the
"Community Workforce Housing Innovation Pilot Program "), as amended; be designated
by the board of county commissioners as a CWHIP project for Collier County; and be
approved and awarded CWHIP funds by the State of Florida.
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b. For owner - occupied CWHIP dwellings, the owner(s) of the dwelling unit must be at least 18
years of age and must be either citizen(s) of the United States, or be a legal alien who
permanently resides in the United States. Proof of United States citizenship or permanent
legal residency must be established to the county's sole satisfaction. The dwelling unit
must be granted a homestead tax exemption pursuant to F.S. ch. 196.
c. For rental CWHIP dwellings, the dwelling unit must be and must remain the household's
permanent residence. The head of the household must be at least 18 years of age and
must be either a citizen of the United States, or be a legal alien who permanently resides in
the United States.
(d) Repayment for owner - occupied units.
(1) All impact fees deferred for owner - occupied dwelling units shall become due and payable and
shall be immediately paid in full to the county upon:
a. The sale of the dwelling; or
b. Refinancing of the purchase mortgage or loans secured by senior real property security
instruments; or
c. A loss of the homestead exemption under Section 4, Article X of the State Constitution.
d. The first occurrence of any sale or transfer of any part of the affected real property, and in
any such event the deferred impact fees shall be paid in full to the county not later then the
closing of the sale, or not later then the effective date of the transfer.
(2) Repayment shall include any accrued interest. Interest shall be computed at the rate of five
percent per annum, but no event shall it exceed 25 percent of the total fee amount.
(3) Notwithstanding anything in this subsection (d)(1) of this section 74 -401, the director of the
financial administration and housing department of community development and environmental
services division may waive the triggering of the obligation to pay deferred impact fees due to a
refinancing if the director determines that the refinancing is for improvements or repairs to the
dwelling that will enhance the value of the dwelling, and is of such a nature as not to justify that
the deferred impact fees should become due and payable because of the sale, transfer, or
refinancing.
(e) Repayment for rental and community workforce housing innovation pilot program (CWHIP) dwelling
units. Deferred impact fees for rental dwelling units, including any multifamily dwelling units, single -
family detached houses, modular homes (also known as residential manufactured buildings) and
mobile homes (also known as manufactured homes) as defined in section 74 -108 of this chapter,
and community workforce housing innovation pilot program (CWHIP) dwelling units, shall in all
events be due and payable not later than ten years after the execution of the impact fee deferral
agreement by the county, unless otherwise extended by the board of county commissioners. Such
fees shall be accelerated and automatically be due and payable prior to that time period if there is
any breach of the subject impact fee deferral agreement by the noncounty party. For CWHIP units,
the residential development must at all times continue to meet all requirements of F.S. § 420.5095,
(the "Community Workforce Housing Innovation Pilot Program "), as amended, throughout the
deferral period, failing which the lien shall become immediately due and payable and shall thereafter
generate interest at the statutory judgment rate set forth in F.S. § 55.03, as amended.
(f) Repayment obligations.
(1) Generally. The impact fees deferred shall be a lien on the property until all requirements under
this article and the agreement have been satisfied.
(2) Rentals.
a. Annually, the owner (i.e., lessor) of a rental dwelling unit, including any multi - family
dwelling unit, shall provide to the county manager an affidavit of compliance with the
criteria set forth in this section. The affidavit must be filed within 30 days of the anniversary
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date of the issuance of a certificate of occupancy. If the affidavit is not filed on time the
affiant shall pay to the county a $50.00 late fee.
b. If the income of any unit renter which originally qualified as very low or low income level as
defined in section 74 -402, below, exceeds the standards set forth in subsection (c) by more
than 40 percent, then the deferred impact fee shall become immediately due and payable
by the owner or, in the alternative, the owner shall have 90 days to comply with the
affordable housing standards set forth in this section. Developments which are then
monitored by the Florida Housing Finance Corporation, or any other state or federal
agency, will not be required to file this separate affidavit of compliance with the county
manager. The applicant shall provide a true copy of these monitoring reports to the County
Department of Financial Administration and Housing.
(3) Owner- occupied dwelling units. If the household income of the qualified owner- occupied
dwelling unit rises above the standards for deferrals set forth in subsection (b) of this section,
the owner shall maintain the deferral. Notwithstanding the foregoing, all outstanding impact fees
deferred shall be paid in full upon sale or transfer of the dwelling unit.
(g) Deferral agreements. The owner receiving an impact fee deferral shall enter into a deferral
agreement of impact fee agreement with the county. A separate deferral agreement shall be
executed for each qualifying owner- occupied dwelling or qualifying rental dwelling. While applicants
are required to enter into a deferral agreement in order to receive a deferral of impact fees, nothing
in this section requires the county to enter into a deferral agreements. The deferral agreement shall
provide for, at a minimum, the following and shall further include such provisions deemed necessary
by the board to effectuate the provisions of this article:
(1) The legal description of the dwelling unit.
(2) Where an impact fee deferral is given to an owner who will be selling or renting the dwelling unit
to a subsequent purchaser or renter, the development must be sold or rented to households
meeting the criteria set forth in this article in order to maintain the deferral.
(3) For each such owner - occupied dwelling unit, the amount of impact fees deferred shall be paid
to the county in full upon sale. For rental units, including any multifamily dwelling unit, the
impact fees deferred shall in all events be due and payable no later than ten years after the
execution by the county of the impact fee deferral agreement. Such fees shall be accelerated
and thereby be automatically due and payable prior to that time period if there is any breach in
the subject impact fee deferral agreement by the noncounty party.
(4) The deferred impact fees shall be a lien on the property. The lien may be foreclosed upon in the
event of noncompliance with the requirements of the agreement. The agreement described
herein shall operate as a lien against the dwelling unit. The lien shall terminate upon the
recording of a release or satisfaction of lien in the public records of the county. Such release
shall be recorded upon payment in full. Neither the deferred impact fees nor the agreement
providing for the deferral of impact fees shall be transferred, assigned, credited or otherwise
conveyed from the dwelling unit. The deferrals of impact fees and the agreement thereto shall
run with the land.
(5) Upon satisfactory completion of the agreement's requirements, the county shall record any
necessary documentation evidencing same, including, but not limited to, a release of lien.
(6) In the event the owner is in default under the agreement, and the default is not cured within 30
days after written notice is provided to the owner, the board may at its sole option collect the
impact fee amounts in default as set forth by article V, section 74 -501, or bring a civil action to
enforce the agreement or declare that the deferred impact fees are then in default and
immediately due and payable. The board shall be entitled to recover all fees and costs,
including attorney's fees and costs, incurred by the county in enforcing the agreement, plus
interest at the then maximum statutory rate for judgments calculated on a calendar day basis
until paid.
(7) The agreement shall be binding upon the owner's successors and assigns
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(8) The agreement shall be recorded in the official records of the county at no cost to the county.
(h) Ceiling on deferrals.
(1) The aggregate amount of impact fee deferrals granted pursuant to subsection (b) of this section
shall be limited, in total, to an amount not exceeding three percent of the previous years' total
impact fee collections.
(2) Deferrals shall be available on a first -come, first - served basis. If the requests for deferrals
exceed the number of deferrals available, the county manager may allocate deferrals based on
the extent to which the deferrals implement the comprehensive plan, or other criteria based on
policies and procedures that may be adopted by the board of county commissioners.
(3) The county manager shall maintain a tracking system to ensure that the aggregate amount of
impact fee deferrals do not exceed the deferral ceilings established in this subsection.
(4) The aggregate amount of impact fee deferrals granted pursuant to subsection (c) of this section
shall be limited, in total, to 225 units per fiscal year with no rollover of funding.
(i) Amendments. Any changes or amendments to this article or the minimum funding requirements
adopted in this article must occur as an ordinance amendment at a public hearing of the board of
county commissioners.
(j) Eligible dwelling unit categories. Agreements for the deferral of impact fees for affordable housing
may only be approved for the following types of dwelling units:
(1) Single- family residences that are fully detached, and either owner- occupied or rental dwelling
units, or
(2) Owner - occupied or rental dwelling units in a residential condominium, townhouse or duplex
structure, or
(3) Rental (leased) multifamily dwelling units.
(4) Rental modular homes that meet, as a minimum, the then current standards of F.S. ch. 553, for
homeownership or rental, and that bear the department of community affairs insignia seal
certifying that the structure is in compliance with the Florida Manufactured Buildings Act of
1979, as amended or superseded.
(5) Rental mobile homes that are constructed to then applicable standards promulgated by the
United States Department of Housing and Urban Development (HUD) and that bear a two inch
by four inch metal, rectangular red and silver certification label on each section of the home
certifying that the home has been inspected in accordance HUD requirements, and that have
been constructed in conformance with federal manufactured home construction and safety
standards in effect on the date of manufacture.
(k) Apartment complexes /multifamily dwelling units. Notwithstanding any provisions elsewhere in this
chapter to the contrary, any owner that develops an affordable housing rental apartment complex,
consisting in whole or part of multifamily dwelling units serving very low and /or low- income levels and
meeting all requirements, and subject to all conditions, of this article shall be entitled to defer 100
percent of the impact fees applicable only to such rental multifamily dwelling units serving very low
and /or low- income levels if: (i) all such deferred impact fees are paid on or before the end of ten
years from the date such impact fees are deferred; and (ii) the, rental apartment development shall
remain affordable housing qualified (under this article) for a minimum of 15 years.
(1) Single- family, detached residences and duplexes. Impact fee deferrals for only single - family,
detached residences, or duplexes, as owner occupied dwelling 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 deferrals may also be similarly subordinated in the case of
rental dwelling units, including any multifamily dwelling units, but only if the owner provides additional
security satisfactory to the county such as additional or substitute collateral in the form of cash or
cash equivalent financial instruments which will yield the full amount of the deferred impact fees
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when they may become due and payable. This provision requiring additional security is not
applicable to community workforce housing innovation pilot program (CWHIP) projects.
(m) Timing of payment. Any units meeting the requirements of this subsection that are sold below the
maximum home sales price in Collier County for Florida Housing Finance Corporation Programs, or
qualify for and enter into an approved deferral agreement shall not be required to pay the impact
fees applicable for the unit or building any sooner than issuance of a certificate of occupancy or
certificate of completion for the building permit for construction or as may otherwise be set forth in
such waiver or deferral agreement. In order to obtain a certificate of adequate public facilities
concurrently with the issuance of the final site development plan or plat, the applicant shall first enter
into an approved deferral agreement with Collier County or provide a notarized affidavit to the county
manager, which must include the following:
(1) Name of project, legal description and number assigned by Collier County to the development
order;
(2) Name of applicant and owner, if different;
(3) Number of dwelling units;
(4) Statement of intent that the subject dwelling unit sales price will meet the affordability guidelines
of the Florida Housing Finance Corporation for Collier County.
(n) Certificate of occupancy requirements on filing of affidavit. Prior to the issuance of a certificate of
occupancy for individual dwelling units which have provided the foregoing affidavit instead of
entering into a deferral agreement with Collier County, the applicant must also provide a copy of the
executed sales contract to the county manager demonstrating a qualifying sales price. A copy of the
closing statement demonstrating a qualifying sales price will be provided to the county manager
within ten days of the closing of the sale of each qualifying dwelling unit.
(o) Violations. Failure to adhere to the requirements set forth by this section may result in the impact
fees becoming immediately due and payable and payment being considered delinquent from the
date of the notarized affidavit and then becoming subject to the collection provisions provided for in
article V, section 74 -501, including payment of delinquency fees and interest.
(p) Transitional provisions. The following provisions apply to any impact fee deferrals or reimbursements
that were granted prior to August 1, 2005:
(1) Any deferral agreement that was executed prior to August 1, 2005, shall continue in effect in
accordance with its terms consistent with the requirements in effect at the time that the deferral
agreement was executed.
(2) If reimbursement is required pursuant to an impact fee deferral or waiver that was paid with
State Housing Initiatives Partnership (SHIP) Program funds, payment will be made to the county
affordable housing trust fund.
(Ord. No. 01 -13, § 1, 3- 13 -01; Ord. No. 02 -34, § 2, 6- 25 -02; Ord. No. 02 -58, § 1, 11 -5 -02; Ord.
No. 03 -25, §§ 2, 3, 5- 27 -03; Ord. No. 2005 -40, § 4; Ord. No. 2006 -40, § 4; Ord. No. 07 -84, § 1;
Ord. No. 2014 -04, § 6)
Sec. 74 -402. - Affordable housing definitions.
The following sets forth the applicable definitions for affordable housing dwelling units.
(a) "Very, very low income families" means families whose incomes do not exceed 35 percent of
the median income for the area as determined by the Secretary of the U.S. Department of
Housing and Urban Development.
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(b) "Very low income families" means families whose incomes do not exceed 50 percent of the
median income for the area as determined by the Secretary of the U.S. Department of Housing
and Urban Development.
(c) "Low income families" means families whose incomes are more than 50 percent but do not
exceed 80 percent of the median income for the area as determined by the Secretary of the
U.S. Department of Housing and Urban Development.
(d) "Moderate income families" means families whose incomes are more than 80 percent but do not
exceed 120 percent of the median income for the area as determined by the Secretary of the
U.S. Department of Housing and Urban Development.
(Ord. No. 01 -13, § 1, 3- 13 -01; Ord. No. 02 -34, § 3, 6- 25 -02; Ord. No. 2005 -40, § 4)
Secs. 74- 403 -74 -500. - Reserved.
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