Agenda 03/26/2013 Item #16D3W
3/26/2013 16.D.3.
EXECUTIVE SUMMARY
Recommendation to authorize a budget amendment recognizing $64,822.16, in_ program income
revenue generated by properties acquired under the Neighborhood Stabilization Program (NSP1).
OBJECTIVE: To accurately account for program income generated from NSPlactivities.
CONSIDERATIONS: Collier County has used Neighborhood Stabilization Program funds to acquire
and rehabilitate foreclosed and abandoned properties. Once rehabilitation is complete, the homes are sold
to income - qualified persons or families. Upon sale, the net proceeds are returned to Collier County as
program income to be used for other eligible Neighborhood Stabilization Program activities, including
administration. Neighborhood Stabilization Program funds have also been used to provide affordable
rental housing according to the requirement that 25% of NSP funds be used to provide benefit to
households whose income is no greater than 50% of area median income. The following tables list the
properties which generated the program income.
Property Address
December 2012
January 2013
February 2013
Net Proceeds
Down
Payment
Rent
Rent
Rent
(Total Rents)
5318 Gilchrist St Naples Fl
and Rehab)
price
Assistance
Costs
34113
$500
$500
$500
$1,500
5320 Gilchrist St Naples Fl
venue NE,
34113
$550
$550
$550
$1,650
5322 Gilchrist St Naples Fl
Naples
34113
$550
$550
$550
$1,650
5324 Gilchrist St Naples Fl
$114,283.98
($4,910.23)
$109,373.75
$71,000
34113
$550
$550
$550
$1,650
5326 Gilchrist St Naples Fl
34113
$650
$650
$650
$1,950
5328 Gilchrist St Naples Fl
34113
$550
$550
$550
$1,650
5330 Gilchrist St Naples Fl
34113
$550
$550
$550
$1,650
5334 Gilchrist St Naples Fl
34113
$550
$550
$550
$1,650
5336 Gilchrist St Naples Fl
34113
$550
$550
$550
$1,650
TOTAL
$5,000
$5,000
$5,000
$15,000
Property
Address
Total
Expenditures
Unrecoverable
Funds*
Expenditures
(Acquisition
Contract
**
Down
Payment
Misc
Closing
Net
Proceeds
by Property
and Rehab)
price
Assistance
Costs
(Revenue)
4040 3.1 st
venue NE,
$114,283.98
($4,910.23)
$109,373.75
$71,000
($19,170)
($2,007.84)
$49,822.16
Naples
TOTAL
$114,283.98
($4,910.23)
$109,373.75
$71,000
($19,170)
($2,007.84)
$49,822.16
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3/26/2013 16.D.3.
*Unrecoverable funds are those expenditures for carrying the property before sale (i.e. lawn care and
routine maintenance).
* *The "Contract Price" is determined per the policy set forth in the County approved NSP
Administrative Plan regarding the final _sales price. The final sale price m4, be lesser of (a) the
aggregate of all acquisition, rehabilitation, and redevelopment costs, minus $1, 000, rounded down to the
nearest thousand, or (b) the appraised value established by a licensed third parry appraiser during the
process of qual Ong for first mortgage financing from a private financial institwtion. Per Federal NSP
Policy Alerts, the maximum sales price for any property purchased and rehabilitated with NSP funds
must be less than the total expenditures minus carrying costs (Unrecoverable Funds) per property.
The "Down Payment Assistance" (i.e. subsidy retention) is secured by a second rortgage recorded in the
Public Records of Collier County and will be repaid when a home is sold, refinanced, or no longer used as
a principal residence.
The "Net Proceeds" listed above represents the amount of net revenue generated in compliance with grant
regulations and does not represent a profit figure.
With limited exceptions, "program income" is defined at 24 CFR 570.500 as "gross income received by
the recipient or a subrecipient directly generated from the use of CDBG funds." Using this definition any
revenue generated through the sale or rental of a NSP property will generate program income. Program
income must be used towards NSP eligible uses also known as eligible activities (Acquisition,
Rehabilitation, Redevelopment, Land Banking, and Demolition). Program income may also be used to
pay developer fees for the NSP program through program delivery to a developer. Program income
generated from these units will, in addition, be used to fund the costs of improvement, maintenance and
upkeep of the rental properties.
Any remaining program income at the time of grant closeout will be disposed of per Federal guidelines.
The Department of Housing and Urban Development (HUD) plans to publish closeout guidelines
pertaining to program income for grantees during the early part of 2013.
This revenue will be used in compliance with federal grant regulations and will fund eligible expenses,
including administration. The chart below illustrates how the revenue will be properly allocated between
allowable administration (10 %) and program activities when the budget amendment is completed.
Property Address
Net Proceeds
Admin
Program
Activities
5318 Gilchrist St Naples Fl 34113
$1,500
$150
$1,350
5320 Gilchrist St Naples F134113
$1,650
$165
$1,485
5322 Gilchrist St Naples Fl 34113
$1,650
$165
$1,485
5324 Gilchrist St Naples F134113
$1,650
$165
$1,485
5326 Gilchrist St Naples F134113
$1,950
$195
$1,755
5328 Gilchrist St Naples Fl 34113
$1,650
$165
$1,485
5330 Gilchrist St Naples F134113
$1,650
$165
$1,485
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3/26/2013 16.D.3.
Property Address
Net Proceeds
Admin
Program
Activities
5334 Gilchrist St Naples Fl 34113
$1,650
$165
$1,485
5336 Gilchrist St Naples FI 34113
$1,650
$165
$1,485
TOTAL
ES 15,000
$1,500
$13,500
Property Address
Net Proceeds
Admin
Program
4040 31st Avenue NE, Naples
$49,822.16
$4,982.22
$44,839.94
Total Net Proceeds
$49,822.16
$4,982.22
$44,839.94
Any remaining program income at the time of grant closeout will be disposed of per Federal guidelines.
FISCAL IMPACT: A budget amendment is necessary to recognize program income revenue in the
amount of $64,822.16 within Urban Improvement Grants Fund 121, NSP1 Project 33050.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney's Office, raises no
legal issues, and requires majority vote for Board approval. - JBW
GROWTH MANAGEMENT IMPACT• The Neighborhood Stabilization Program facilitates the goals,
objectives and policies set forth in the Housing Element of the Growth Management Plan.
RECOMMENDATION: To recognize $64,822.16 in revenue and authorize the corresponding budget
amendment.
Prepared By: Geoffrey Magon, Grants Coordinator, Housing, Human & Veteran Services
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3/26/2013 16.D.3.
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.16.D.16.D.3.
Item Summary: Recommendation to authorize a budget amendment recognizing
$64,822.16 in program income revenue generated by properties acquired under the
Neighborhood Stabilization Program (NSP1).
Meeting Date: 3/26/2013
Prepared By
Name: MagonGeoffrey
Title: Grants Coordinator
2/28/2013 8:45:50 PM
Approved By
Name: LarsenKathleen
Date: 3/5/2013 12:30:34 PM
Name: GrantKimberley
Title: Interim Director, HHVS
Date: 3/7/2013 11:07:27 AM
Name: SonntagKristi
Date: 3/7/2013 11:14:41 AM
Name: AlonsoHailey
Title: Operations Analyst, Public Service Division
Date: 3/7/2013 1:56:31 PM
Name: CarnellSteve
Title: Director - Purchasing/General Services,Purchasing
Date: 3/11/2013 1:06:09 PM
Name: Joshua Thomas
Title: Grants Support Specialist,
Date: 3/12/2013 3:17:36 PM
Name: WhiteJennifer
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Title: Assistant County Attorney,County Attorney
Date: 3/19/2013 8:30:21 AM
Name: Klatzkowieff
Title: County Attorney
Date: 3/19/2013 8:41:45 AM
Name: FinnEd
Title: Senior Budget Analyst, OMB
Date: 3/19/2013 9:44:56 AM
Name: StanleyTherese
Title: Management/Budget Analyst, Senior,Office of Manage
Date: 3/19/2013 9:51:01 AM
Name: OchsLeo
Title: County Manager
Date: 3/19/2013 3:31:42 PM
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