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Agenda 02/28/2012 Item #16D6Proposed Agenda Changes Board of County Commissioners Meeting February 28, 2012 Move Item 16D6 to Item 1 1H: Recommendation to implement the direction of the Board of County Commissioners by amending the Neighborhood Stabilization Program Action Plans to execute program changes and authorize submission of the revised Action Plans to the U.S. Department of Housing and Urban Development. (Commissioner Hiller and Commissioner Fiala's separate requests) Withdraw Item 6A: Public Petition request from David Bakalar representing Wells Fargo Bank, requesting the Board remove all fines assessed against property at 6090 Painted Leaf Lane, Naples (Petitioner request) Continue Item 9A to the March 13 2012 BCC Meeting: This item requires that ex parte disclosure be provided by Commission members. Should a hearing be held on this item, all participants are required to be sworn in. PUDA- PL20110000047: Sabal Bay MPUD -- An Ordinance of the Board of County Commissioners of Collier County, Florida amending Ordinance No. 05 -59, the Sabal Bay Mixed Use Planned Unit Development, by amending the PUD Document, Exhibit A, to provide for: changes in development standards including right of way widths and sidewalks; addition of general permitted uses to include outside storage and telecommunication facilities; removal of golf as a permitted use; addition of car wash, post office, docks and electric boats as allowable uses in the recreation /village center tract; increase of preserve by 45 acres; increase in floor area ratio for adult living facility and increase in height; removal of affordable housing and removal of Bald Eagle Management Plan and Gopher Tortoise Relocation Management Plan on property located south of Thomasson Drive, south and west of U. S. 41, north and west of the Wentworth PUD, and east of the Naples Bay intercoastal waterway in Sections 23, 24, 25, 26 and 36, Township 50 South, Range 25 East, and Section 19, Township 50 South, Range 26 East, Collier County, Florida, consisting of 2,416 +/- acres; and providing an effective date. (Applicant's request) Move Item 16A13 to Item 11J: Recommendation to approve a Settlement and Release Agreement between Collier County and American Traffic Solutions, Inc. for provision of Collier County's Traffic Infraction Detector Program also known as the Red Light Running Camera Enforcement System. (Staffs request) Move Item 16131 to Item 14138: Recommendation to the Board of County Commissioners acting as the Community Redevelopment Agency (CRA) to approve the attached Site Access Agreement between the CRA in Immokalee (Owner) and Douglas N. Higgins, Inc. (Contractor) allowing said Contractor to store its materials and equipment in conjunction with the Downtown Immokalee Stormwater Improvement Project. The site location is at the southwest corner of South 9th Street and Main Street in Immokalee (folio number 00122840009). (Commissioner Hiller's request) Move Item 16C3 to Item 11K: Recommendation to approve a work order in the amount of $586,159.60 to DN Higgins for construction tasks set forth in Request for Quotation 08- 5011 -58, Irrigation Quality Water Sites. (Commissioner Hiller's request) Move Item 16D7 to Item 11I: Recommendation to approve a Short Sale Policy for the State Housing Initiatives Partnership (SHIP) program. (Commissioner Hiller's request) Note: Item 16A16 should read: Recommendation to adopt a resolution of necessity samending Resolution No. 2011 -105 correcting scrivener's errors in legal descriptions and authorizing the condemnation of those perpetual and temporary easement interests necessary for the construction of stormwater improvements known as the US -41 Ditch segment of the Lely Area Stormwater Improvement Project. (Project No. 51101) Estimated fiscal impact: $1,787,000. (Staffs request) 2/28/2012 Item 16.D.6. EXECUTIVE SUMMARY Recommendation to implement the direction of the Board of County Commissioners by amending the Neighborhood Stabilization Program Action Plans to execute program changes and authorize submission of the revised Action Plans to the U.S. Department of Housing and Urban Development. OBJECTIVE: To implement the first action item required to extract the County from the operations of the Neighborhood Stabilization Program (NSP). CONSIDERATIONS: On December 14, 2011, agenda item 10A, the Board of County Commissioners approved a NSP strategy and associated implementation actions. Four specific action items were approved: (1) negotiate a developer agreement with Habitat for Humanity, (2) prepare amended NSP -1 and NSP -3 action plans, (3) develop a solicitation to designate not- for - profit organizations to assume ownership and operation of rental properties, and (4) provide public notice of intent to dispose of all NSP properties. The item before you today is (2): prepare amended NSP -1 and NSP -3 action plans required to implement the direction provided by the Board of County Commissioners. To facilitate a review of the recommended changes, a summary of the proposed changes for the NSP -1 and NSP -3 action plans have been prepared. Approval of this item will provide the foundation upon which the remaining action items may be implemented. The following table summarizes the estimated schedule to complete the NSP exit strategy previously approved: Action Item Progress and Status Projected Milestone Date Prepare amended NSP -1 and Amended plans are scheduled for the February 28, NSP -3 action plans 2012 Board meeting. Once approved, the plans March 2012 will be submitted to HUD for approval. HUD has provided a template agreement upon Negotiate a developer which staff will develop the County final agreement with Habitat for agreement; HUD has provided a technical advisor April 2012 Humanity to review for compliance. Project board review in Aril. The request for proposals (RFP) has been created Develop a request for and reviewed for compliance by a HUD technical proposals to solicit not -for- advisor. RFP released mid- February. Pursuant to profit organization(s) to own policy, the RFP must be open for a minimum of 21 April 2012 and operate NSP rental days. Board will be presented with selection housing committee recommendations and have final approval. Where a buyer has been identified, bank financing Sell completed single - family is being secured. For those homes without a buyer, staff is attempting to match properties persons July 2012 properties interested in the program. Minor construction is being completed. Transfer properties to Habitat This action item will commence after the Board TBD Packet Page -1595- 2/28/2012 Item 16.D.6. for Humanity has approved the developer a eement Habitat for Humanity This action item will commence after the Board purchasing properties under has approved the developer agreement and will be March 2014 NSP -3 ongoing. The above items are the key implementation activities. Housing, Human and Veteran Services will have the requirement of monitoring the developer and subrecipient(s) for the duration of the NSP and through grant closeout activities. FISCAL IMPACT: There are no fiscal impacts associated with this item. LEGAL CONSIDERATIONS: This item is legally sufficient and requires a majority vote for board action. - JBW GROWTH MANAGEMENT IMPACT: The NSP will help meet the goals, objectives and policies set forth in the Housing Element of the Growth Management Plan. RECOMMENDATION: To approve amended NSP -1 and NSP -3 actions plans and authorize submission of the revised actions plan to HUD. Prepared By: Frank Ramsey, Operations Analysts; Housing, Human and Veteran Services Packet Page -1596- 2/28/2012 Item 16.D.6. COLLIER COUNTY Board of County Commissioners Item Number: 16.D.6. Item Summary: Recommendation to implement the direction of the Board of County Commissioners by amending the Neighborhood Stabilization Program Action Plans to execute program changes and authorize submission of the revised Action Plans to the U.S. Department of Housing and Urban Development. Meeting Date: 2/28/2012 Prepared By Name: RamseyFrank Title: Manager, Housing, Human and Veteran Services 1/13/2012 8:39:36 AM Submitted by Title: Manager, Housing, Human and Veteran Services Name: RamseyFrank 1/13/2012 8:39:37 AM Approved By Name: AlonsoHailey Title: Administrative Assistant,Domestic Animal Services Date: 2/10/2012 2:58:02 PM Name: GrantKimberley Title: Interim Director, HHVS Date: 2/14/2012 12:00:48 PM Name: RamseyMarla Title: Administrator, Public Services Date: 2/15/2012 4:26:38 PM Name: StanleyTherese Title: Management/Budget Analyst, Senior,Office of Management & Budget Date: 2/21/2012 12:02:22 PM Packet Page -1597- Name: KlatzkowJeff Title: County Attorney Date: 2/21/2012 2:47:24 PM Name: KlatzkowJeff Title: County Attorney Date: 2/21/2012 4:24:31 PM Name: PryorCheryl Title: Management/ Budget Analyst, Senior,Off ce of Management & Budget Date: 2/21/2012 5:06:36 PM Name: OchsLeo Title: County Manager Date: 2/22/2012 11:18:58 AM Packet Page -1598- 2/28/2012 Item 16.D.6. 2/28/2012 Item 16.D.6. SUMMARY OF RECOMMENDED CHANGES NEIGHBORHOOD STABILIZATION PROGRAM 1 ACTION PLAN Overall Change Pages 1 -23 Added page numbers Jurisdiction Information Page 1 Revise "NSP Contact Person" name, address, and email address Identified Program Target Areas Page 4 Revise "on the following page" to "below" Definition of Affordable Rents Page 6 Update to FY12 Fair Market Rents (FMR) Continued Affordability Narrative Response Pages 6 -7 Revise to be consistent with 24 CFR 92.252(a), (c), (e), and (f), and 92.254 Rehabilitation Standards Page 8 Revise to provide minimum standard adhering to local and state building codes Low Income Targeting Pages 9 -10 Revise narrative to designate Developer and use homeownership Acquisition & Relocation Page 10 Modify to include Developer Activity #1 Page 11 Update "Responsible Organization" information Page 11 Modify to designate use of Developer Page 11 Update department name Page 11 Revise to designate use of Developer or Subrecipient Page 11 Revise to provide examples of parts of the activity Page 12 Modify to clarify first mortgage provision only when purchasing from County Page 12 Delete section relating to "Rehabilitation Specification Report" Pages 12 -13 Modify long term affordability narrative to reference previous section Page 13 Revise to clarify second mortgage provision only when purchasing from County Page 13 Delete County's role in maintaining active list of income qualified applicants Page 13 Delete paragraph relating to inability to sell properties Page 13 Revise program income narrative Page 1 of 2 Packet Page -1599- 2/28/2012 Item 16.D.6. Activity #2 Page 14 Update "Responsible Organization" information Page 14 Modify to designate use of Developer Page 15 Update department name Page 15 Revise to designate use of Developer or Subrecipient Page 15 Revise to provide examples of parts of the activity Page 15 Delete section relating to "Rehabilitation Specification Report" Page 15 Modify long term affordability narrative to reference previous section Page 15 Delete section relating to second mortgage Page 16 Modify "renter" to "developer, or subrecipient" Page 16 Revise program income narrative Page 16 Delete paragraph relating to Housing Authority Page 16 Delete paragraph relating to tenant referrals Activity #3 Page 17 Update "Responsible Organization" information Activity #4 Page 19 Update "Responsible Organization" information Page 19 Modify to designate use of Developer Activity #5 Page 21 Update "Responsible Organization" information Page 21 Modify to designate use of Developer Page 21 Modify long term affordability narrative to reference previous section Page 21 Delete section relating to second mortgage Page 22 Modify section relating to future redevelopment Page 22 Revise program income narrative ** END ** Page 2 of 2 Packet Page -1600- 2/28/2012 Item 16.D.6. THE NSP SUBSTANTIAL AMENDMENT Iurisdiction(s): Collier County Jurisdiction Web Address: colliergov.net A. AREAS of GREATEST NEED NSP Contact Person: Kimberley Grant Address: 3339 Tamiami Trail E, Suite 211, Naples, FL 34112 Telephone: (239) 252 -4663 Fax: (239) 252 -2638 Email: kimberlevarant(a)collierizov.net Provide summary needs data identifying the geographic areas of greatest need in the grantee's jurisdiction. Note: An NSP substantial amendment must include the needs of the entire jurisdiction(s) covered by the program; states must include the needs of communities receiving their own NSP allocation. To include the needs of an entitlement community, the State may either incorporate an entitlement jurisdiction's consolidated plan and NSP needs by reference and hyperlink on the Internet, or state the needs for that jurisdiction in the State's own plan. The lead entity for a joint program may likewise incorporate the consolidated plan and needs of other participating entitlement jurisdictions' consolidated plans by reference and hyperlink or state the needs for each jurisdiction in the lead entity's own plan. HUD has developed a foreclosure and abandonment risk score to assist grantees in targeting the areas of greatest need within their jurisdictions. Grantees may wish to consult this data, in developing this section of the Substantial Amendment. Narrative Response: Collier County is an economically diverse community, with areas of affluence in the coastal communities as well as extreme poverty in other locations. The County is geographically large, encompassing approximately 2,025 square miles. Collier County, with an estimated population of 339,000, is located on the southern gulf coast of the Florida peninsula, due west of Miami -Ft. Lauderdale. The largest of the three incorporated cities in Collier County is Naples, which is located in the western and coastal area. The remaining two incorporated cities of Collier County are Everglades City and the City of Marco Island. Everglades City is located south and east of Naples, while the City of Marco Island lies south of Naples along the Gulf of Mexico. Collier County used the U.S. Department of Housing and Urban Development's (HUD) average foreclosure index score in identifying the target geographies for assistance in the redevelopment of abandoned and foreclosed homes. The destabilization of neighborhoods in Collier County is pervasive, affecting nearly all areas for the County. As such, any efforts to stabilize the local housing market and revitalize the community must be Countywide. Areas at Risk The table on the following page summarizes the average foreclosure index score for eligible census tracts in Collier County. To be considered eligible for assistance an area must be assigned a Max Index Score of nineteen (19) or twenty (20). Packet Page -1601- 2/28/2012 Item 16.D.6. Census Tract Foreclosure Needs Index Score Vacancy Risk Index Score Max Index Score 0104.06 20 12 20 0104.08 19 16 19 0104.01 19 16 19 0102.03 19 19 19 0105.03 20 18 20 0105.04 20 19 20 0106.02 19 15 19 0106.01 19 19 19 0106.04 19 15 19 0106.03 20 16 20 0105.02 20 17 20 0108.01 19 18 19 0107.02 19 14 19 0108.02 20 8 20 0104.11 20 15 20 0104.09 20 18 20 0104.10 20 19 20 0104.14 20 1 20 0104.13 20 1 20 0108.03 19 1 19 0111.01 20 1 20 0109.01 20 18 20 0109.03 20 12 20 0104.12 20 1 20 0112.04 20 17 20 0113.00 20 9 20 0112.02 20 1 20 0114.00 20 13 20 0104.07 20 1 20 0104.05 20 16 20 0102.02 20 1 20 0003.01 18 18 18 0102.04 20 16 20 0101.04 20 7 20 0101.03 20 1 20 Average Max Index Score 19.69 Qualified 2 Packet Page -1602- 2/28/2012 Item 16.D.6. Identified Program Target Areas The Collier County NSP Allocation will target the following three (3) areas for economic and housing redevelopment: East Collier, South Collier and Central Collier. The following tables further define the target areas to include eligible census tracts within each of the three (3) target areas. EAST COLLIER TARGET AREA Census Tract Foreclosure Needs Index Score Vacancy Risk Index Score Max Index Score 0104.14 20 1 20 0104.13 20 1 20 0104.12 20 1 20 0112.02 20 1 20 Average Max Index Score 20.00 SOUTH COLLIER TARGET AREA Census Tract Foreclosure Needs Index Score Vacancy Risk Index Score Max Index Score 0105.04 20 19 20 0106.02 19 15 19 0106.01 19 19 19 0106.04 19 15 19 0106.03 20 16 20 0105.02 20 17 20 0108.01 19 18 19 0107.02 19 14 19 0108.02 20 8 20 0108.03 19 1 19 0111.01 20 1 20 Average Max Index Score 19.45 CENTRAL COLLIER TARGET AREA Census Tract Foreclosure Needs Index Score Vacancy Risk Index Score Max Index Score 0104.06 20 12 20 0104.08 19 16 19 0105.03 20 18 20 0104.11 20 15 20 0104.09 20 18 20 0104.10 20 19 1 20 Packet Page -1603- 2/28/2012 Item 16.D.6. 0104.07 1 20 1 20 Average Max Index Score 19.86 The map appearing below provides a visual representation of the three (3) target areas. East Collier is depicted in yellow, South Collier is depicted in green and Central Collier is depicted in blue. On= M aO1.O1 q i IOLOB 1 " ^" r Irz.a lol.oa a O ; *04.05 102.04 Q ty i as To LOa 11 ...._. T." 1= '..IOWZ a its 24 04 � 22.05 f O2.as .un.ann J 20 J` ���•• 1 P � TARGET ARFA I� �._ w����.. : 5OUTH CGLLIERt/1RGET RRFA UWRALMWERTARGET AREA 1' r�u...eirn 21.02 M 2/28/2012 Item 16.D.6. B. DISTRIBUTION AND USES OF FUNDS Provide a narrative describing how the distribution and uses of the grantee's NSP funds will meet the requirements of Section 2301(c)(2) of HERA that funds be distributed to the areas of greatest need, including those with the greatest percentage of home foreclosures, with the highest percentage of homes financed by a subprime mortgage related loan, and identified by the grantee as likely to face a significant rise in the rate of home foreclosures. Note: The grantee's narrative must address these three stipulated need categories in the NSP statute, but the grantee may also consider other need categories. Narrative Response: Based upon the County's analysis of the HUD average foreclosure index scores, all three areas are eligible for NSP assistance. Furthermore, the 68% of the targeted census tracts have a max index score of 20, the most severe rating possible under the NSP. The NSP Allocation will be used as described in Section G — NSP Information by Activity. Twenty -five (25) percent of the Collier County NSP Allocation will be used to assist households earning no more than fifty (50) percent of the local area median income. Collier County will continue to monitor local housing data in an effort to determine if an expanded area of assistance is required. Dwelling units assisted with NSP Funds shall be rehabilitated to the extent necessary to comply with applicable laws, codes, and other requirements relating to housing safety, quality, and habitability. Collier County will encourage rehabilitation that improves the energy efficiency and/or conservation of dwelling units receiving assistance. Additionally, the County will strongly encourage the incorporation of green building improvements to provide long- term affordability, increased sustainability and attractiveness of housing and neighborhoods. C. DEFINITIONS AND DESCRIPTIONS (1) Definition of "blighted structure" in context of state or local law. Narrative Response: Blighted structure, as extracted from 2008 Florida Statute 163.340, is defined as a structure that is deteriorated or deteriorating to the extent that unsanitary or unsafe conditions may threaten the health safety and welfare of the public. Characteristics include, but are not limited to: (a) Unsanitary or unsafe conditions; (b) Deterioration of site or other improvements; (c) Inadequate provision for ventilation, light, air, sanitation or open spaces; (d) The existence of conditions that endanger life of property by fire or other causes. (2) Definition of "affordable rents." Note: Grantees may use the definition they have adopted for their CDBG program but should review their existing definition to ensure compliance with NSP program — specific requirements such as continued affordability. Narrative Response: Packet Page -1605- 5 2/28/2012 Item 16.D.6. The maximum Affordable Rents shall not exceed the Fair Market Rents (FMR) as published annually by the U.S. Department of Housing and Urban Development for the Naples — Marco Island MSA. The current rates are listed below: Final FY 2012 FMRs By Unit Bedrooms Minimum period of affordability Efcienc One - Bedroom Two - Bedroom Three- Bedroom Four- Bedroom Final FY 2012 FMR 1 $ 813 1 $ 932 1 $ 19049 1 $ 1,304 1 $ 1,357 Source: U.S. Department of Housing and Urban Development (2012) (3) Describe how the grantee will ensure continued affordability for NSP assisted housing. Narrative Response: 24 CFR 92.252(a), (c), (e), and (0, and 92.254 Homeownership: Long -Term Affordability The NSP 1- assisted housing must meet the affordability requirements for not less than the applicable period specified in the following table, beginning after project completion. These restrictions are a minimum and Collier County may elect to impose longer affordability periods. The per unit amount of NSP 1 funds and the affordability period that they trigger are described more fully below under "Homeownership: Recapture Provisions." Homeownership assistance NSPI amount per -unit Minimum period of affordability in years Under 5 $15,000.. ............... ............................... $15,000 to 10 $40,000. . .......... ............................... Over $40,000 ............. ............................... . Homeownership: Recapture Provisions The recapture provisions will ensure that Collier County, Developer, or Subrecipient recoups all or a portion of the NSP 1 assistance benefiting the homebuyer, if the housing does not continue to be the principal residence of the family for the duration of the period of affordability. The period of affordability is based upon the total amount of NSP 1 funds subject to recapture described above. Collier County, Developer, or Subrecipient may choose to recapture the entire amount of NSP 1 assistance or a reduced amount on a prorata basis for the time the homeowner has owned and occupied the housing measured against the required affordability period. The net proceeds may be divided proportionally as set forth in the following mathematical formulas: NSP 1 investment X Net proceeds = NSP 1 amount to County NSP 1 investment + homeowner investment homeowner investment X Net proceeds = amount to homeowner NSP 1 investment + homeowner investment 0 Packet Page -1606- 2/28/2012 Item 16.D.6. Collier County, Developer, or Subrecipient may permit the homebuyer to recover the homebuyer's entire investment (downpayment and capital improvements made by the owner since purchase) before recapturing the NSPI investment. Rental: Long -Term Affordability The NSP 1 -assisted units must meet the affordability requirements for not less than the applicable period specified below, beginning after project completion. The affordability requirements for NSP 1 -assisted rental units apply without regard to the term of any loan or mortgage or the transfer of ownership, except that the affordability restrictions may terminate upon foreclosure or transfer in lieu of foreclosure. Collier County, Developer, or Subrecipient will enforce long -term affordability through the use of a recorded lien, covenant, or deed restriction against the assisted property. Rental housing activity Minimum period of affordability in years Rehabilitation or acquisition of existing housing per unit amount of NSP 1 funds: Under 5 $15,000.. .................. ............................... $15,000 to $40,000.. .......... ............................... 10 Over $40,000 or rehabilitation involving 15 refinancing. . ........................ ............................... New construction or acquisition of newly constructed 20 housing Subsequent rents during the affordability period will be calculated and applied in conformance with 24 CFR 92.252(f). (4) Describe housing rehabilitation standards that will apply to NSP assisted activities. Narrative Response: All NSP I -assisted housing will be required to meet or exceed local and state building codes. All units that require rehabilitation must meet or exceed the current Florida Building Code (FBC). The current code applied in Collier County is 2007 FBC. (5) Definition of "Middle Income Household" A household having an income equal to or less than 120% of area median income, but greater than 80% of area median income, adjusted for household size. (6) Definition of "Moderate Income Household" A household having an income equal to or less than 80% of area median income, but greater than 50% of area median income, adjusted for household size. (7) Definition of "Low Income Household" A household having an income equal to or less than 50% of area median income, adjusted for household size. 7 Packet Page -1607- 2/28/2012 Item 16.D.6. (8) Definition of "Current Market Appraised Vale" The current market appraised value means the value of a foreclosed upon home or residential property that is established through an appraisal made in conformity with the appraisal requirements of the URA at 49 CFR 24.103 and completed within 60 days prior to an offer made for the property by a grantee, subrecipient, developer, or individual homebuyer. (9) Definition of "Abandoned" A home is abandoned when mortgage or tax foreclosure proceedings have been initiated for that property, no mortgage or tax payments have been made by the property owner for at least 90 days, AND the property has been vacant for at least 90 days. (10) Definition of "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. (11) Definition of "Foreclosed" A property "has been foreclosed upon" at the point that, under state or local law, the mortgage or tax foreclosure is complete. HUD generally will not consider a foreclosure to be complete until after the title for the property has been transferred from the former homeowner under some type of foreclosure proceeding or transfer in lieu of foreclosure, in accordance with state or local law. (12) Definition of "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 the purposes of the NSP Program, a land bank will operate in a specific, defined geographic area. It will purchase properties that have been abandoned or 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 abandoned or foreclosed property that it does not own, provided it charges the owner of the property the full cost of the service or places a lien on the property for the full cost of the service. D. LOW INCOME TARGETING Identify the estimated amount of funds appropriated or otherwise made available under the NSP to be used to purchase and redevelop abandoned or foreclosed upon homes or residential properties for housing individuals or families whose incomes do not exceed 50 percent of area median income: $1,827,000.00. Note: At least 25% of funds must be used for housing individuals and families whose incomes do not exceed 50 percent of area median income. Narrative Response: Habitat for Humanity of Collier County, Inc. ( "Habitat for Humanity) has a proven track record of success in providing homeownership units to households earning less than 50% AMI. As such, Collier County will Packet Page -1608- 2/28/2012 Item 16.D.6. execute a developer agreement with Habitat for Humanity through which households earning less than 50% AMI will be provided affordable homeownership units. E. ACQUISITIONS & RELOCATION Indicate whether grantee intends to demolish or convert any low- and moderate - income dwelling units (i.e., < 80% of area median income). If so, include: • The number of low- and moderate - income dwelling units —i.e., <_ 80% of area median income — reasonably expected to be demolished or converted as a direct result of NSP- assisted activities. • The number of NSP affordable housing units made available to low- , moderate -, and middle - income households —i.e., < 120% of area median income — reasonably expected to be produced by activity and income level as provided for in DRGR, by each NSP activity providing such housing (including a proposed time schedule for commencement and completion). • The number of dwelling units reasonably expected to be made available for households whose income does not exceed 50 percent of area median income. Narrative Response: Should the initial inspection and/or rehabilitation work determine that demolition of the dwelling unit is more cost effective, Collier County or its Developer may chose to demolish the existing unit and either place the site in the County land bank or construct a new unit on the site. If the cost to rehabilitate the unit is greater than fifty (50) percent of the acquisition price, and/or the cost of acquisition and rehabilitation exceeds one hundred ;100) percent loan -to- value, the County will consider demolition. Collier County does not intend demolition to be a major activity in its NSP. Rather, the County reserves the right to demolish an acquired property if deemed a more fiscally effective use of NSP Funds. The County shall abide by Uniform Relocation Action (URA) requirements for any affected household where a housing unit is being demolished that has not been vacant for greater than ninety (90) days. Collier County will avoid using NSP Funds to acquire homes or residential properties that have been vacant for fewer than ninety (90) days. F. PUBLIC COMMENT G. NSPINFORMATIONBYACTTVITY (COMPLETEFORE.4CHACTIVITY) Activity #1 - Acquisition and Rehabilitation of Foreclosed Properties for Resale (1) Activity: Acquisition and Rehabilitation of Foreclosed Properties for Resale (2) Activity Type: Acquisition and Rehabilitation of Foreclosed Properties for Resale 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; 24 CFR 570.201(a) Acquisition; 24 CFR 570.201(b) Disposition; 9 Packet Page -1609- 2/28/2012 Item 16.D.6. • 24 CFR 570.201(i) Relocation; • 24 CFR 570.201(n) Direct homeownership assistance (as modified below); o 570.202 eligible rehabilitation and preservation activities for homes and other residential properties (HUD notes that rehabilitation may include counseling for those seeking to take part in the activity). (3) National Objective: Provides or improves permanent residential structures that will be occupied by a household-whose income is at or below 120 percent of area median income. (4) Projected Start Date: February 13, 2009 (5) Projected End Date: February 13, 2014 (6) Responsible Organization: Collier County Department of Housing, Human and Veteran Services; 3339 Tamiami Trail E, Suite 211, Naples, FL 34112. The County may execute a developer agreement to undertake this Activity. (7) Location Description: Collier County will assist those areas defined in Section A. Areas of Greatest Need — Identified Program Target Areas. The County will continue to monitor local foreclosure data and intend the NSP to be flexible to allow for timely reaction to any significant changes in the local housing market. (8) Activity Description: Include a narrative describing the area of greatest need that the activity addresses; the expected benefit to income - qualified persons; and whether funds used for this activity will be used to meet the low income housing requirement for those below 50% of area median income. For housing related activities, include: • tenure of beneficiaries -- rental or homeownership; • duration or term of assistance; • a description of how the design of the activity will ensure continued affordability. For acquisition activities, include: • discount rate For financing activities, include: • range of interest rates Narrative Response: Collier County's Departrent of Housing, Human and Veteran Services will be the lead agency in working with local lenders to acquire homes that have been foreclosed, vacant for at least ninety (90) days and on the lender's list of current inventory. The County may partner with various community organizations and agencies to identify properties suitable for NSP assistance. Nonprofit and/or charitable organizations, developers, or subrecipients that demonstrate an ability to successfully undertake NSP projects may be solicited to perform all or parts of this activity, including, but not limited to, property ownership, rehabilitation, maintenance, and resale. The County shall identify properties for sale in the areas of greatest need. If required, a rehabilitation plan shall be developed and the County and/or housing partners will determine if acquisition of the subject property is financially feasible. 10 Packet Page -1610- 2/28/2012 Item 16.D.6. Collier County will assist those areas defined in Section A. Areas of Greatest Need — Identified Program Target Areas. The purchase price for all properties acquired with NSP Funds during the initial 18 month period shall be discounted at least one (1) percent from the current market- appraised value of the home or residential property and that such discount shall ensure that purchasers are paying below - market value for the home or property. The current market appraisal will be made in conformity with the requirements of the URA at 49 CFR 24.103 and completed within 60 days prior to an offer to purchase made by the County or an approved housing partner. If required, rehabilitation shall be completed and the subject property will be sold to an income eligible applicant earning no more than 120% of local area median income. The applicant will procure a fixed -rate mortgage through the Collier County Loan Consortium, local banks, FHA or USDA. The interest rate shall not exceed one (1) percent above the then current 60 day Fannie Mae Index. Additionally, no mortgage insurance is allowed (the only exception being FHA Home Loans), all loans shall be fully documented, no pre - payment penalties. are permitted, closing costs must be reasonable and customary and applicants' total debt -to- income ratio must be reasonable as determined by the Collier County Department of Housing and Human Services. All lenders providing first mortgage financing to individuals purchasing homes or residential properties directly from Collier County, where such property was assisted with NSP Funds agree to comply with the bank regulators' guidance for non - traditional mortgages. Refer to Statement on Subprime Mortgage Lending issued by the Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Department of the Treasury, and National Credit Union Administration, available at http: / /www.fdie.gov/ regulations /laws /rules /5000- 5160.html. A portion of the NSP Funds used in the acquisition and/or rehabilitation may remain in the home or residential property to provide principal reduction and increase affordability. The homes targeted for NSP assistance will be properties that have been foreclosed, bank - owned, and vacant for at least ninety (90) days. The County shall negotiate with local banks to purchase properties at a discount rate of at least 15 percent from the current market - appraised value. The current market appraisal will be made in conformity with the requirements of the URA at 49 CFR 24.103 and completed within 60 days prior to an offer to purchase made by the County or an approved housing partner. Collier County anticipates that many of the homes or residential properties acquired with NSP Funds will require rehabilitation and/or improvements to bring the home or residential property into compliance with current code for Collier County as detailed in Section C of this Substantial Amendment. Collier County will ensure long term affordability as described in Section (C)(3) of this substantial amendment. All properties sold to individuals by Collier County receiving assistance from the NSP will be secured by a recorded second mortgage on the subject property in favor of Collier County. In the event the unit is transferred to an owner(s) deemed eligible for assistance under NSP guidelines, the amount of assistance will remain in the subject property to provide principal reduction. In the event the unit is transferred to an owner(s) deemed ineligible for assistance under NSP guidelines, the amount of assistance will be recaptured. The principal reduction second mortgage shall bear an interest rate of 0 %. No payment will be required until the home is sold, transferred, refinanced, is no longer the primary homesteaded residence or is operated for an activity deemed ineligible for assistance under NSP guidelines. At that time the balance of the loan will be repaid. The County will use the minimum affordability period of the federal HOME Investment Partnership Program, 24 CFR 92.252(a), (c), (e) and (0, and 92.254. The minimum affordability periods are as follows: 11 Packet Page -1611- 2/28/2012 Item 16.D.6. • Up to $15,000 — 5 Years • $15,001 to $40,000 —10 Years • Over $40,001 — 15 Years • New Construction — 20 Years Applicant(s) will be qualified based on criteria such as household income, job stability, credit history and liquidity. A minimum of 25 percent of the Collier County NSP Allocation shall be used to assist households earning less than 50 percent local area median income. In no event shall NSP Funds be used to assist households earning more than 120 percent local area median income. All applicants must receive at least eight (8) hours of homebuyer education from a U.S. Department of Housing and Urban Development certified counselor. Collier County shall place program income derived from the sale of the home or residential property into an appropriate fund to recycle the NSP Funds. Program income shall be used for any eligible NSP Activity listed within this Substantial Amendment, a portion of which may be used for program administration. Pursuant to HUD NSP Policy Alert "Program Income in the Neighborhood Stabilization Program" dated July 13, 2011, revenues received by developers are NOT considered program income. A minimum of 25 percent of the Collier County NSP Allocation shall be used to assist households earning less than 50 percent local area median income. In no event shall NSP Funds be used to assist households earning more than 120 percent local area median income. Activity #2 - Acquisition and Rehabilitation of Foreclosed Properties for Rental (1) Activity Name: Acquisition and Rehabilitation of Foreclosed Properties for Rental (2) Activity Type: Acquisition and Rehabilitation of Foreclosed Properties for Rental • 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; • 24 CFR 570.201(a) Acquisition; • 24 CFR 570.201(b) Disposition; • 24 CFR 570.201(i) Relocation; • 24 CFR 570.201(n) Direct homeownership assistance (as modified below); o 570.202 eligible rehabilitation and preservation activities for homes and other residential properties (HUD notes that rehabilitation may include counseling for those seeking to take part in the activity). (3) National Objective: Provides or improves permanent residential structures that will be occupied by a household whose income is at or below 120 percent of area median income. (4) Projected Start Date: February 13, 2009 (5) Projected End Date: February 13, 2014 Packet Page -1612- 12 2/28/2012 Item 16.D.6. (6) Responsible Organization: Collier County Department of Housing, Human and Veteran Services; 3339 Tamiami Trail E, Suite 211, Naples, FL 34112. The County may solicit developers, or subrecipients to undertake this Activity. (7) Location Description: Collier will assist those areas defined in Section A. Areas of Greatest Need — Identified Program Target Areas. The County will continue to monitor local foreclosure data and intend the NSP Program to be flexible to allow for timely reaction to any significant changes in the local housing market. (8) Activity Description: Include a narrative describing the area of greatest need that the activity addresses; the expected benefit to income - qualified persons; and whether funds used for this activity will be used to meet the low income housing requirement for those below 50% of area median income. For housing related activities, include: • tenure of beneficiaries -- rental or homeownership; • duration or term of assistance; • a description of how the design of the activity will ensure continued affordability. For acquisition activities, include: • discount rate For financing activities, include: • range of interest rates Narrative Response: Collier County's Department of Housing, Human and Veteran Services will be the lead agency in working with local lenders to acquire homes that have been foreclosed, vacant for at least ninety (90) days and on the lender's list of current inventory. The County may partner with various community organizations and agencies to identify properties suitable for NSP assistance. Nonprofit and/or charitable organizations, developers, or subrecipients that demonstrate an ability to successfully undertake NSP project may be solicited to perform all or parts of this activity, including, but not limited to, property ownership, rehabilitation, maintenance, and rental operation. The County shall identify properties for sale in the areas of greatest need. If required, a rehabilitation plan shall be developed and the County and/or housing partners will determine if acquisition of the subject property is financially feasible. Collier County will assist those areas defined in Section A. Areas of Greatest Need — Identified Program Target Areas. The purchase price for all properties acquired with NSP Funds during the initial 18 month period shall be discounted at least one (1) percent from the current market- appraised value of the home or residential property. The current market appraisal will be made in conformity with the requirements of the URA at 49 CFR 24.103 and completed within 60 days prior to an offer to purchase made by the County or an approved housing partner. If required, rehabilitation shall be completed and the subject property will be rented to an income eligible applicant earning no more than 120% of local area median income. 13 Packet Page -1613- 2/28/2012 Item 16.D.6. Collier County anticipates that many of the homes or residential properties acquired with NSP Funds will require rehabilitation and/or improvements to bring the home into compliance current code for Collier County as detailed in Section C of this Substantial Amendment. Collier County will ensure long term affordability as described in Section (C)(3) of this substantial amendment. The County will use the minimum affordability period of the federal HOME Investment Partnership Program, 24 CFR 92.252(a), (c), (e) and (f), and 92.254. The minimum affordability periods are as follows: • Up to $15,000 — 5 Years • $15,001 to $40,000— 10 Years • Over $40,001 — 15 Years • New Construction — 20 Years A portion of the NSP Funds used in the acquisition and/or rehabilitation may remain in the home or residential property to provide a subsidy to the developer, or subrecipient and increase the subject property's affordability. Collier County shall place program income derived from the rental operations of the home or residential property into a separate revolving fund to recycle the NSP Funds. Program income shall be used for any eligible NSP Activity listed within this Substantial Amendment, a portion of which may be used for program administration. Pursuant to HUD NSP Policy Alert "Program Income in the Neighborhood Stabilization Program" dated July 13, 2011, revenues received by developers are NOT considered program income. A minimum of 25 percent of the Collier County NSP Allocation shall be used to assist households earning less than 50 percent local area median income. In no event shall NSP Funds be used to assist households earning more than 120 percent local area median income. Activity #3 — Purchase Assistance to Acquire Foreclosed Properties (1) Activity Name: Purchase Assistance to Acquire Foreclosed Properties (2) Activity Type: Purchase Assistance to Acquire Foreclosed Properties 6 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; • 24 CFR 570.201(a) Acquisition; 0 24 CFR 570.201(b) Disposition; • 24 CFR 570.201(i) Relocation; • 24 CFR 570.201(n) Direct homeownership assistance (as modified below); o 570.202 eligible rehabilitation and preservation activities for homes and other residential properties (HUD notes that rehabilitation may include counseling for those seeking to take part in the activity). (3) National Objective: Provides or improves permanent residential structures that will be occupied by a household whose income is at or below 120 percent of area median income. (4) Projected Start Date: February 13, 2009 Packet Page -1614- 14 2/28/2012 Item 16.D.6. (5) Projected End Date: February 13, 2014 (6) Responsible Organization: Collier County Department of Housing, Human and Veteran Services; 3339 Tamiami Trail E, Suite 211, Naples, FL 34112. The County may solicit through Requests for Qualifications and/or Requests for Proposals organizations /partners to participate in the program. (7) Location Description: Collier County will assist those areas defined in Section A. Areas of Greatest Need — Identified Program Target Areas. The County will continue to monitor local foreclosure data and intend the NSP Program to be flexible to allow for timely reaction to any significant changes in the local housing market. (8) Activity Description: Include a narrative describing the area of greatest need that the activity addresses; the expected benefit to income - qualified persons; and whether funds used for this activity will be used to meet the low income housing requirement for those below 50% of area median income. For housing related activities, include: • tenure of beneficiaries -- rental or homeownership; • duration or term of assistance; • a description of how the design of the activity will ensure continued affordability. For acquisition activities, include: • discount rate For financing activities, include: • range of interest rates Narrative Response: Collier County's Department of Housing and Human Services will be the lead agency in working with local residents to acquire homes that have been foreclosed, vacant for at least ninety (90) days and on the lender's list of current inventory. The County may partner with various community organizations and agencies to assist persons locate properties suitable for NSP assistance. Nonprofit and/or charitable organizations with a proven track record of successfully implementing this activity, as well as administering U.S. Department Housing and Urban Development grant funds, may be solicited to perform all or parts of this activity. The Purchase Assistance Activity shall assist first -time homebuyers by paying a principal reduction for the proposed purchase. The activity provides assistance for the purchase of single family homes, duplexes, condominiums, townhouses or DCA approved manufactured homes. Collier County will assist those areas defined in Section A. Areas of Greatest Need — Identified Program Target Areas. The purchase price for all properties acquired with NSP Funds during the initial 18 month period shall be discounted at least one (1) percent from the current market - appraised value of the home or residential property. The current market appraisal will be made in conformity with the requirements of the URA at 49 CFR 24.103 and completed within 60 days prior to an offer to purchase made by the applicant. All households assisted must earn no more than 120 percent of the local area median income. 15 Packet Page -1615- 2/28/2012 Item 16.D.6. The applicant will procure a fixed -rate mortgage through the Collier County Loan Consortium, local banks, FHA or USDA. The interest rate shall not exceed one (1) percent above the then current 60 day Fannie Mae Index. Additionally, no mortgage insurance is allowed (the only exception being FHA Home Loans), all loans shall be fully documented, no pre - payment penalties are permitted, closing costs must be reasonable and customary and applicants' total debt -to- income ratio must be reasonable as determined by the Collier County Department of Housing and Human Services. All applicants must receive at least eight (8) hours of homebuyer education from a U.S. Department of Housing and Urban Development certified counselor. All lenders providing first mortgage financing for homes or residential properties assisted with NSP Funds agree to comply with the bank regulators' guidance for non - traditional mortgages. Refer to Statement on Subprime Mortgage Lending issued by the Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Department of the Treasury, and National Credit Union Administration, available at http: / /www.fdic.gov /regulations /laws /rules /5000- 5160.html. Collier County will ensure long term affordability though the use of a recorded lien against the property. The County will monitor assisted units on an annual basis during the affordability period. Additionally, all properties receiving assistance from the NSP will be secured by a recorded second mortgage on the subject property in favor of Collier County. The purchase assistance second mortgage shall bear an interest rate of 0 %. No payment will be required until the home is sold, transferred, refinanced, is no longer the primary homesteaded residence or is operated for an activity deemed ineligible for assistance under NSP guidelines. At that time the balance of the loan will be repaid. All applicants will be taken on a first- come - first - served basis. Applicants must meet NSP income guidelines, as well as the following: applicant must be a first time home buyer, defined as not having home ownership interest in a residential property during the past three (3) years, a single parent with children under the age of eighteen (18) who has recently been divorced and displaced, a displaced victim of domestic violence, or a person displaced as the result of some government action; the assisted residential property must be located within the boundaries of Collier County, Florida and the purchase price may not exceed $200,000. The County will use the minimum affordability period of the federal HOME Investment Partnership Program, 24 CFR 92.252(a), (c), (e) and (f), and 92.254. The minimum affordability periods are as follows: Up to $15,000 — 5 Years • $15,001 to $40,000 — 10 Years • Over $40,001 — 15 Years • New Construction — 20 Years Collier County shall place program income derived from the sale of the home or residential property into a separate revolving fund to recycle the NSP Funds. Program income shall be used for any eligible NSP Activity listed within this Substantial Amendment, a portion of which may be used for program administration. In no event shall NSP Funds be used to assist households earning more than 120 percent local area median income. All applicants must receive at least eight (8) hours of homebuyer education from a U.S. Department of Housing and Urban Development certified counselor. Activity #4 — Demolition of Acquired Foreclosed Properties 16 Packet Page -1616- 2/28/2012 Item 16.D.6. (1) Activity Name: Demolition of Acquired Foreclosed Properties ;2) Activity _Type: Demolition and Clearance of Foreclosed Properties • Demolish blighted structures; • 24 CFR 570.201(d) Clearance for blighted structures only. (3) National Objective: Provides or improves permanent residential structures that will be occupied by a household whose income is at or below 120 percent of area median income. (4) Projected Start Date: February 13, 2009 (5) Projected End Date: February 13, 2014 (6) Responsible Organization: Collier County Department of Housing, Human and Veteran Services; 3339 Tamiami Trail E, Suite 211, Naples, FL 34112. The County may execute a developer agreement to undertake this Activity. (7) Location Description: Collier County will assist those areas defined in Section A. Areas of Greatest Need — Identified Program Target Areas. The County will continue to monitor local foreclosure data and intend the NSP Program to be flexible to allow for timely reaction to any significant changes in the local housing market. (8) Activity Description: Include a narrative describing the area of greatest need that the activity addresses; the expected benefit to income - qualified persons; and whether funds used for this activity will be used to meet the low income housing requirement for those below 50% of area median income. For housing related activities, include: • tenure of beneficiaries -- rental or homeownership; • duration or term of assistance; • a description of how the design of the activity will ensure continued affordability. For acquisition activities, include: • discount rate For financing activities, include: • range of interest rates Narrative Res op nse: Homes or residential properties acquired through the NSP that are not economically feasible to rehabilitate, pose a health threat or pose safety threat, may be demolished. Demolished properties may be placed in a land bank maintained by Collier County or provided to a local nonprofit provider of affordable housing. Additionally, NSP Funds may be used to construct a new home on the site. Collier County will assist those areas defined in Section A. Areas of Greatest Need — Identified Program Target Areas. 17 Packet Page -1617- 2/28/2012 Item 16.D.6. If the cost to rehabilitate the unit is greater than fifty (50) percent of the acquisition price, and/or the cost of acquisition and rehabilitation exceeds one hundred (100) percent loan-to- value, the County will consider demolition. Collier County does not intend demolition to be a major activity in its NSP. Rather, the County reserves the right to demolish an acquired property if deemed a more fiscally effective use of NSP Funds. The County shall abide by Uniform Relocation Action (URA) requirements for any affected household where a housing unit is being demolished that has not been vacant for greater than ninety (90) days. Collier County will avoid using NSP Funds to acquire homes or residential properties that have been vacant for fewer than ninety (90) days. Should Collier County or its housing partner construct a new unit on the site, such activity shall be governed by NSP guidelines as discussed in Activity #1 - Acquisition and Rehabilitation of Foreclosed Properties for Resale. Additionally, all households assisted must earn no more than 120 percent of the local area median income. The County will use the minimum affordability period of the federal HOME Investment Partnership Program, 24 CFR 92.252(a), (c), (e) and (f), and 92.254. The minimum affordability periods are as follows: • Up to $15,000 — 5 Years • $15,001 to $40,000— 10 Years • Over $40,001 — 15 Years • New Construction — 20 Years Collier County shall place program income derived from the sale of the home or residential property into a separate revolving fund to recycle the NSP Funds. Program income shall be used for any eligible NSP Activity listed within this Substantial Amendment, a portion of which may be used for program administration. Activity #5 — Land Banking of Acquired Properties (1) Activity Name: Land Banking of Acquired Properties (2) Activity Type: Land Banking of Acquired Properties • Establish land banks for homes that have been foreclosed upon; • 24 CFR 570.201(a) Acquisition; • 24 CFR 570.201(b) Disposition. (3) National Objective: Provides or improves permanent residential structures that will be occupied by a household whose income is at or below 120 percent of area median income. (4) Projected Start Date: February 13, 2009 (5) Projected End Date: February 13, 2014 (6) Responsible Organization: Collier County Department of Housing, Human and Veteran Services; 3339 Tamiami Trail E, Suite 211, Naples, FL 34112. The County may execute a developer agreement to undertake this Activity. is Packet Page -1618- 2/28/2012 Item 16.D.6. (7) Location Description: Collier County will assist those areas defined in Section A. Areas of Greatest Need — Identified Program Target Areas. The County will continue to monitor local foreclosure data and intend the NSP Program to be flexible to allow for timely reaction to any significant changes in the local housing market. (8) Activity Description: Include a narrative describing the area of greatest need that the activity addresses; the expected benefit to income - qualified persons; and whether funds used for this activity will be used to meet the low income housing requirement for those below 50% of area median income. For housing related activities, include: • tenure of beneficiaries -- rental or homeownership; • duration or term of assistance; • a description of how the design of the activity will ensure continued affordability. For acquisition activities, include: .• discount rate For financing activities, include: • range of interest rates Narrative Response: Collier County may acquire properties that have been foreclosed and/or vacant for at least ninety (90) days and are on the lender's list of current inventory to be placed in a land bank. The purchase price for all properties acquired with NSP Funds during the initial 18 month period shall be discounted at least one (1) percent from the zurrent market - appraised value of the home or residential property. The current market appraisal will be made in conformity with the requirements of the URA at 49 CFR 24.103 and completed within 60 days prior to an offer to purchase made by the County or an approved housing partner. The County may partner with various community organizations and partners to identify properties suitable for NSP land banking. Properties acquired through this NSP Program for the purpose of being placed in a land bank may be demolished as discussed in Activity #5 - Demolition of Acquired Foreclosed Properties. Collier County will assist those areas defined in Section A. Areas of Greatest Need — Identified Program Target Areas. Collier County will ensure long term affordability as described in Section (C)(3) of this substantial amendment. All NSP1- assisted housing will be required to meet or exceed local and state building codes. All units that require rehabilitation must meet or exceed the current Florida Building Code (FBC). The current code applied in Collier County is 2007 FBC. The County will use the minimum affordability period of the federal HOME Investment Partnership Program, 24 CFR 92.252(a), (c), (e) and (f), and 92.254. The minimum affordability periods are as follows: Up to $15,000 - 5 Years $15,001 to $40,000 —10 Years Over $40,001 — 15 Years Packet Page -1619- 19 2/28/2012 Item 16.D.6. • New Construction — 20 Years A minimum of 25 percent of the Collier County NSP Allocation shall be used to assist households earning less than 50 percent local area median income. In no event shall NSP Funds be used to assist households earning more than 120 percent local area median income. An NSP- assisted property may not be held in a land bank for more than ten (10) years without obligating the property for a specific, eligible redevelopment of that property in accordance with NSP requirements. Collier County shall place program income derived from the sale of the home or residential property into an appropriate fund to recycle the NSP Funds. Program income shall be used for any eligible NSP Activity listed within this Substantial Amendment, a portion of which may be used for program administration. Pursuant to HUD NSP Policy Alert "Program Income in the Neighborhood Stabilization Program" dated July 13, 2011, revenues received by developers are NOT considered program income. I. Total Budget: $7;306,755 Narrative Response: Refer to Exhibit "A ". The U.S. Department of Housing and Urban Development allows up to 10 percent of the NSP grant provided to Collier County and up to 10 percent of program income earned for general administration and planning activities as those are defined at 24 CFR 570.205 and 206. The 10 percent limitation applies to the grant as a whole. Additionally, HUD recognizes the need to move forward rapidly to prepare this substantial amendment and to undertake other administrative actions. Therefore HUD has granted permission to incur pre -award costs effective September 29, 2008 in preparation of the substantial amendment. J. Performance Measures (e.g., units of housing to be acquired, rehabilitated, or demolished for the income levels of households that are 50 percent of area median income and below, 51 -80 percent, and 81 -120 percent): Narrative Response: Collier County shall include performance measures in all agreements with local partners contracted with to implement activities described in this Substantial Amendment. Such measures shall ensure funds are expended within the initial NSP required 18 -month time period. Collier County shall monitor all progress to ensure the housing activities listed in this amendment are completed in a timely manner and local benefit achieved as soon as possible. Collier County estimates the total number of units assisted with the initial $7,306,755 allocation to be 59. As assisted units are sold or transferred, program income shall return to the County. The County may use the program income received for any activities listed in this substantial amendment, a portion of which may be used for program administration. The following is a list, by income level, of total units of housing to be assisted with NSP Funds: • Low Income — households earning 50% of area median income or less; o 15 units • Moderate Income— households earning between 51% and 80% area median income; o 22 units 20 Packet Page -1620- 2/28/2012 Item 16.D.6. • Middle Income — households earning between 81 % and 120% area median income; o 22 units Summary of Projected Number of Units Assisted Activity Type Low Income Moderate Income Middle Income Acquisition for Resale 3 13 13 Acquisition for Rental 12 2 2 Direct Assistance 0 3 3 Demolition 0 3 3 Land Banking 0 1 1 Total 15 22 22 The Collier County Neighborhood Stabilization Program Substantial Amendment is adopted this 14"' day of February, 2012. ATTEST: DWIGHT E. BROCK, CLERK M. , DEPUTY CLERK APPROVED AS TO FORM AND LEGAL SUFFICIENCY '3Y: JENNIFER WHITE ASSISTANT COUNTY ATTORNEY BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA FRED W. COYLE, CHAIRMAN Packet Page -1621- 21 2/28/2012 Item 16.D.6. THE NSP SUBSTANTIAL AMENDMENT Jurisdiction(s): Collier County Jurisdiction Web Address: colliergov.net A. AREAS of GREATESTNEED NSP Contact Person: ley IineKimberley Grant Address: gym E r amiami Trail, Heal X3339 Tamiami Trail E, Suite 211, Naples, FL 34112 Telephone: (239) 252 -4663 Fax: (239) 252 -2638 Email: .net Provide summary needs data identifying the geographic areas of greatest need in the grantee's jurisdiction. Note: An NSP substantial amendment must include the needs of the entire jurisdiction(s) covered by the program; states must include the needs of communities receiving their own NSP allocation. To include the needs of an entitlement community, the State may either incorporate an entitlement jurisdiction's consolidated plan and NSP needs by reference and hyperlink on the Internet, or state the needs for that jurisdiction in the State's own plan. The lead entity for a joint program may likewise incorporate the consolidated plan and needs of other participating entitlement jurisdictions' consolidated plans by reference and hyperlink or state the needs for each jurisdiction in the lead entity's own plan. HUD has developed a foreclosure and abandonment risk score to assist grantees in targeting the areas of greatest need within their jurisdictions. Grantees may wish to consult this data, in developing this section of the Substantial Amendment. Narrative Response: Collier County is an economically diverse community, with areas of affluence in the coastal communities as well as extreme poverty in other locations. The County is geographically large, encompassing approximately 2,025 square miles. Collier County, with an estimated population of 339,000, is located on the southern gulf coast of the Florida peninsula, due west of Miami -Ft. Lauderdale. The largest of the three incorporated cities in Collier County is Naples, which is located in the western and coastal area. The remaining two incorporated cities of Collier County are Everglades City and the City of Marco Island. Everglades City is located south and east of Naples, while the City of Marco Island lies south of Naples along the Gulf of Mexico. Collier County used the U.S. Department of Housing and Urban Development's (HUD) average foreclosure index score in identifying the target geographies for assistance in the redevelopment of abandoned and foreclosed homes. The destabilization of neighborhoods in Collier County is pervasive, affecting nearly all areas for the County. As such, any efforts to stabilize the local housing market and revitalize the community must be Countywide. Areas at Risk The table on the following page summarizes the average foreclosure index Collier County. To be considered eligible for assistance an area must b nineteen (19) or twenty (20). 1 Packet Page -1622- score for eligible census tracts in assigned a Max Index Score of 2/28/2012 Item 16.D.6. Census Tract Foreclosure Needs Index Score Vacancy Risk Index Score Max Index Score 0104.06 20 12 20 0104.08 19 16 19 0104.01 19 16 19 0102.03 19 19 19 0105.03 20 18 20 0105.04 20 19 20 0106.02 19 15 19 0106.01 19 19 19 0106.04 19 15 19 0106.03 20 16 20 0105.02 20 17 20 0108.01 19 18 19 0107.02 19 14 19 0108.02 20 8 20 0104.11 20 15 20 0104.09 20 18 20 0104.10 20 19 20 0104.14 20 1 20 0104.13 20 1 20 0108.03 19 1 19 0111.01 20 1 20 0109.01 20 18 20 0109.03 20 12 20 0104.12 20 1 20 0112.04 20 17 20 0113.00 20 9 20 0112.02 20 1 20 0114.00 20 13 20 0104.07 20 1 20 0104.05 20 16 20 0102.02 20 1 20 0003.01 18 18 18 0102.04 20 16 20 0101.04 20 7 20 0101.03 20 1 20 Packet Page -1623- 2/28/2012 Item 16.D.6. Average Max Index Score 19.69 Qualified Identified Program Target Areas The Collier County NSP Allocation will target the following three (3) areas for economic and housing redevelopment: East Collier, South Collier and Central Collier. The following tables further define the target areas to include eligible census tracts within each of the three (3) target areas. EAST COLLIER TARGET AREA Census Tract Foreclosure Needs Index Score Vacancy Risk Index Score Max Index Score 0104.14 20 1 20 0104.13 20 1 20 0104.12 20 1 20 0112.02 20 1 20 Average Max Index Score 20.00 SOITTH COLLIER TARGET AREA Census Tract Foreclosure Needs Index Score Vacancy Risk Index Score Max Index Score 0105.04 20 19 20 0106.02 19 15 19 0106.01 19 19 19 0106.04 19 15 19 0106.03 20 16 20 0105.02 20 17 20 0108.01 19 18 19 0107.02 19 14 19 0108.02 20 8 20 0108.03 19 1 19 0111.01 20 1 20 Average Max Index Score 19.45 CENTRAL COLLIER TARGET AREA Census Tract Foreclosure Needs Index Score Vacancy Risk Index Score Max Index Score 0104.06 20 12 20 0104.08 19 1 16 19 0105.03 20 1 18 20 3 Packet Page -1624- w 2/28/2012 Item 16.D.6. 0104.11 20 15 20 0104.09 20 18 20 0104.10 20 19 20 0104.07 20 1 20 Average Max Index Score 19.86 The map appearing en the fellowing Ntebelow provides a visual representation of the three (3) target areas. East Collier is depicted in yellow, South Collier is depicted in green and Central Collier is depicted in blue. 10 d U4 ,IOI.OI R. SOLOS 101.03 �1 m r M- 104A5 102.04 Packet Page 1625 - a. �ia4 nisi i „ O.c 1� .QB 04.01 1 06.03' ..�. .�c 1 .Y05..04 no _ 1 ` n' liL.i1.AL k.f,GC� I :: FAST Q3 WTARN ME... id m r Packet Page 1625 - id 2/28/2012 Item 16.D.6. B. DISTRIBUTION AND USES OF FUNDS Provide a narrative describing how the distribution and uses of the grantee's NSP funds will meet the requirements of Section 2301(c)(2) of HERA that funds be distributed to the areas of greatest need, including those with the greatest percentage of home foreclosures, with the highest percentage of homes financed by a subprime mortgage related loan, and identified by the grantee as likely to face a significant rise in the rate of home foreclosures. Note: The grantee's narrative must address these three stipulated need categories in the NSP statute, but the grantee may also consider other need categories. Narrative Response: Based upon the County's analysis of the HUD average foreclosure index scores, all three areas are eligible for NSP assistance. Furthermore, the 68% of the targeted census tracts have a max index score of 20, the most severe rating possible under the NSP. The NSP Allocation will be used as described in Section G — NSP Information by Activity. Twenty -five (25) percent of the Collier County NSP Allocation will be used to assist households earning no more than fifty (50) percent of the local area median income. Collier County will continue to monitor local housing data in an effort to determine if an expanded area of assistance is required. Dwelling units assisted with NSP Funds shall be rehabilitated to the extent necessary to comply with applicable laws, codes, and other requirements relating to housing safety, quality, and habitability. Collier County will encourage rehabilitation that improves the energy efficiency and/or conservation of dwelling units receiving assistance. Additionally, the County will strongly encourage the incorporation of green building improvements to provide long -term affordability, increased sustainability and attractiveness of housing and neighborhoods. C. DEFINITIONS AND DESCRIPTIONS (1) Definition of "blighted structure" in content of state or local law. Narrative Response: Blighted structure, as extracted from 2008 Florida Statute 163.340, is defined as a structure that is deteriorated or deteriorating to the extent that unsanitary or unsafe conditions may threaten the health safety and welfare of the public. Characteristics include, but are not limited to: (a) Unsanitary or unsafe conditions; (b) Deterioration of site or other improvements; (c) Inadequate provision for ventilation, light, air, sanitation or open spaces; (d) The existence of conditions that endanger life of property by fire or other causes. (2) Definition of "affordable rents." Note: Grantees may use the definition they have adopted for their CDBG program but should review their existing definition to ensure compliance with NSP program — specific requirements such as continued affordability. Narrative Response: Packet Page -1626- 2/28/2012 Item 16.D.6. The maximum Affordable Rents shall not exceed the Fair Market Rents (FMR) as published annually by the U.S. Department of Housing and Urban Development for the Naples – Marco Island MSA. The current rates are listed below: Final FY 2012 FMRs By Unit Bedrooms Minimum period of affordability Efficiency One - Bedroom Two - Bedroom Three- Bedroom Four- Bedroom Final FY 2012 FMR 1 $ 813 1 $ 932 1 $ 1,049 1 $ 1,304 $ 1,357 Source: U.S. Department of Housing and Urban Development (?12012) (3) Describe how the grantee will ensure continued affordability for NSP assisted housing. Narrative Response: 24 CFR 92.252(a), (c), (e), and (f), and 92.254 Homeownership: Long -Term Affordability The NSP 1- assisted housing must meet the affordability requirements for not less than the applicable period specified in the following table, beginning after project completion. These restrictions are a minimum and Collier County elect to impose longer affordability periods. The per unit amount of NSP 1 funds and the affordability period that they trigger are described more fully below under "Homeownership: Recapture Provisions." Homeownership assistance NSP 1 amount per -unit Minimum period of affordability in years Under -$15,000 .. 5 $15,000 to $40.000.. 10 Over $40, 000 ............... ............................... — Homeownership: Recapture Provisions The recapture provisions will ensure that Collier County, Developer, or Subrecipient recoups all or a portion of the NSP 1 assistance benefiting the homebuyer, if the housing does not continue to be the principal residence of the family for the duration of the period of affordability. The period of affordability is based upon the total amount of NSPI funds subject to recapture described above. Collier County, Developer, or Subrecipient may choose to recapture the entire amount of NSP 1 assistance or a reduced amount on a prorata basis for the time the homeowner has owned and occupied the housing measured against the required affordability period. The net proceeds may be divided proportionally as set forth in the following mathematical formulas: NSP 1 investment X Net proceeds= NSP 1 amount to County NSP 1 investment + homeowner investment homeowner investment X Net proceeds = amount to homeowner NSP 1 investment + homeowner investment G Packet Page -1627- 2/28/2012 Item 16.D.6. Collier County Developer, or Subrecipient may pen-nit the homebuyer to recover the homebuyer's entire investment (downpayment and capital improvements made by the owner since purchase) before recapturing the NSP 1 investment. Rental: Long -Term Affordability The NSP 1 -assisted units must meet the affordability requirements for not less than the applicable period specified below, beginning after project completion. The affordability requirements for NSP 1- assisted rental units apply without regard to the term of any loan or mortgage or the transfer of ownership, except that the affordability restrictions may terminate upon foreclosure or transfer in lieu of foreclosure. Collier County, Developer, or Subrecipient will enforce long -term affordability through the use of a recorded lien, covenant, or deed restriction against the assisted property. Rental housing activity Minimum period of affordability in years Rehabilitation or acquisition of existing housing _per unit 5 amount of NSP 1 funds: Under $15.000 .. $15,000 to $40,000.. 10 Over $40,000 or rehabilitation involving refinancing. 15 New construction or acquisition of newly constructed 20 housing_. Subseauent rents during the affordability period will be calculated and applied in conformance with 24 CFR 92.252(f). Gellier- County will ffiswe long teFm affefdability thr-atigh the use of a feeerded lien against the pr-epefty. if an though b. • - - - U _ • • • I Am (4) Describe housing rehabilitation standards that will apply to NSP assisted activities. Narrative Response: Packet Page -1628- 2/28/2012 Item 16.D.6. All NSP 1- assisted housing will be reauired to meet or exceed local and state buildinLy codes. All units that require rehabilitation must meet or exceed the current Florida Building Code (FBC). The current code applied in Collier County is 2007 FBC. meet, All dwelling units that fequife fehabilitation ffittst ffleet leeal end state building eades. Gellief Geunly will fequir-e home r-e-habilitalien to > Building Gode (FBC;). The euffent eede used by Gallief County is the -2 , ; , _ b impr-eves the " th gy effieieney b . Additionally, gfeen .. neighbor-heads. Gellier- Gounty eneempasses a large eeastal afea that subjeets the fesidents to the risk e b. mitigation (5) Definition of "Middle Income Household" A household having an income equal to or less than 120% of area median income, but greater than 80% of area median income, adjusted for household size. (6) Definition of "Moderate Income Household" A household having an income equal to or less than 80% of area median income, but greater than 50% of area median income, adjusted for household size. (7) Definition of "Low Income Household" A household having an income equal to or less than 50% of area median income, adjusted for household size. (8) Definition of "Current. Market Appraised Value" The current market appraised value means the value of a foreclosed upon home or residential property that is established through an appraisal made in conformity with the appraisal requirements of the URA at 49 CFR 24.103 and completed within 60 days prior to an offer made for the property by a grantee, subrecipient, developer, or individual homebuyer. (9) Definition of "Abandoned" A home is abandoned when mortgage or tax foreclosure proceedings have been initiated for that property, no mortgage or tax payments have been made by the property owner for at least 90 days, AND the property has been vacant for at least 90 days. (10) Definition of "Blighted Structure" Packet Page -1629- 0 2/28/2012 Item 16.D.6. A structure is blighted when it exhibits objectively determinable signs of deterioration sufficient to constitute a threat to human health, safety, and public welfare. (11) Definition of "Foreclosed" A property "has been foreclosed upon" at the point that, under state or local law, the mortgage or tax foreclosure is complete. HUD generally will not consider a foreclosure to be complete until after the title for the property has been transferred from the former homeowner under some type of foreclosure proceeding or transfer in lieu of foreclosure, in accordance with state or local law. (12) Definition of "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 the purposes of the NSP Program, a land bank will operate in a specific, defined geographic area. It will purchase properties that have been abandoned or 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 abandoned or foreclosed property that it does not own, provided it charges the owner of the property the full cost of the service or places a lien on the property for the full cost of the service. D. Low]NcomE TARGETING Identify the estimated amount of funds appropriated or otherwise made available under the NSP to be used to purchase and redevelop abandoned or foreclosed upon homes or residential properties for housing individuals or families whose incomes do not exceed 50 percent of area median income: $1,827,000.00. Note: At least 25% of funds must be used for housing individuals and families whose incomes do not exceed 50 percent of area median income. Narrative Response: Collier County aeknewledges that households eaming less than 0 AW may require afl4dable rental J dwelling, Speeial emphasis shall be plaeed on b housing to the speeial needs pepulatieii, sueh as eldefly Of developmentally disabled, eaffiing less than 0 Some leeal nen profit ,_ p ider-s in Collier- County i Habitat for Humanity of Collier County, Inc. (`Habitat for Humanitv) has a proven track record of success in providing homeownership units to households earning less than 50% AML be shown af4)Mable -to the i,eespeetiv heiiiebuyen As such, Collier County will execute a developer agreement with Habitat for Humanity through which households earning less than 50% AMI will be provided affordable homeownership units. Should a uHit aeEtttifed afid in�eftded for- homeownefship fail to sell within a timeffame deemed feasanable by Collier- County, said unit may be fented to a hattsehold eaming less thati 509; Housing- .b J the Gellief Count), b Auther-ity operates a Ten 00* Packet Page -1630- 2/28/2012 Item 16.D.6. E. ACQUISITIONS & RELOCATION Indicate whether grantee intends to demolish or convert any low- and moderate - income dwelling units (i.e., < 80% of area median income). If so, include: • The number of low- and moderate - income dwelling units —i.e., < 80% of area median income— reasonably expected to be demolished or converted as a direct result of NSP- assisted activities. • The number of NSP affordable housing units made available to low- , moderate -, and middle- income households —i.e., < 120% of area median income — reasonably expected to be produced by activity and income level as provided for in DRGR, by each NSP activity providing such housing (including a proposed time schedule for commencement and completion). • The number of dwelling units reasonably expected to be made available for households whose income does not exceed 50 percent of area median income. Narrative Response: Should the initial inspection and/or rehabilitation work determine that demolition of the dwelling unit is more cost effective, Collier County or its Developer may chose to demolish the existing unit and either place the site in the County land bank or construct a new unit on the site. If the cost to rehabilitate the unit is greater than fifty (50) percent of the acquisition price, and/or the cost of acquisition and rehabilitation exceeds one hundred (100) percent loan-to- value, the County will consider demolition. Collier County does not intend demolition to be a major activity in its NSP. Rather, the County reserves the right to demolish an acquired property if deemed a more fiscally effective use of NSP Funds. The County shall abide by Uniform Relocation Action (URA) requirements for any affected household where a housing unit is being demolished that has not been vacant for greater than ninety (90) days. Collier County will avoid using NSP Funds to acquire homes or residential properties that have been vacant for fewer than ninety (90) days. F. PUBLIC COMMENT G. NSPINFORMATI ONBYACTIVITY(COMPLETE FOR EACHACTIVITY) Activity #1- Acquisition and Rehabilitation of Foreclosed Properties for Resale (1) Activity Name: Acquisition and Rehabilitation of Foreclosed Properties for Resale (2) Activity TXpe: Acquisition and Rehabilitation of Foreclosed Properties for Resale • 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; • 24 CFR 570.201(a) Acquisition; • 24 CFR 570.201(b) Disposition; 10 Packet Page -1631- 2/28/2012 Item 16.D.6. • 24 CFR 570.201(i) Relocation; • 24 CFR 570.201(n) Direct homeownership assistance (as modified below); o 570.202 eligible rehabilitation and preservation activities for homes and other residential properties (HUD notes that rehabilitation may include counseling for those seeking to take part in the activity). (3) National Objective: Provides or improves permanent residential structures that will be occupied by a household whose income is at or below 120 percent of area median income. (4) Projected Start Date: February 13, 2009 (5) Projected End Date: February 13, 2014 (6) Responsible Organization: Collier County Department of Housing -aii41 Human and Veteran Services; 3-381 E Tams mi Trail,, R aildiff b 3339 Tamiami Trail E, Suite 211, Naples, FL 34112. The County may seliei� thr-attgh Requests for- Qua4ifieatieas and,lar- Requests for- Pr-opesa,4s afganizatiens,�par-taer-s to paflieipate in pi:o execute a developer agreement to undertake this Activitv. (7) Location Description: Collier County will assist those areas defined in Section A. Areas of Greatest Need — Identified Program Target Areas. The County will continue to monitor local foreclosure data and intend the NSP to be flexible to allow for timely reaction to any significant changes in the local housing market. (8) Activity Description: Include a narrative describing the area of greatest need that the activity addresses; the expected benefit to income - qualified persons; and whether funds used for this activity will be used to meet the low income housing requirement for those below 50% of area median income. I r:... For housing related activities, include: • tenure of beneficiaries -- rental or homeownership; • duration or term of assistance; • a description of how the design of the activity will ensure continued affordability. For acquisition activities, include: • discount rate For financing activities, include: • range of interest rates Narrative Response: Collier County's Department of Housing -aid1 Human and Veteran Services will be the lead agency in working with local lenders to acquire homes that have been foreclosed, vacant for at least ninety (90) days and on the lender's list of current inventory. The County may partner with various community organizations and agencies to identify properties suitable for NSP assistance. Nonprofit and/or charitable organizations with en Urban DeN,elep eiit � �„+ T r _.S, developers, or subrecipients that demonstrate an ability to successfully b undertake NSP projects may be solicited to perform all or parts of this activity, including, but not limited to, property ownership rehabilitation, maintenance, and resale. The Depai4ment of Metiskig and Human SeFviees 11 Packet Page -1632- 2/28/2012 Item 16.D.6. The County shall identify properties for sale in the areas of greatest need. If required, a rehabilitation plan shall be developed and the County and/or housing partners will determine if acquisition of the subject property is financially feasible. Collier County will assist those areas defined in Section A. Areas of Greatest Need - Identified Program Target Areas. The purchase price for all properties acquired with NSP Funds during the initial 18 month period shall be discounted at least one (1) percent from the current market- appraised value of the home or residential property and that such discount shall ensure that purchasers are paying below- market value for the home or property. The current market appraisal will be made in conformity with the requirements of the URA at 49 CFR 24.103 and completed within 60 days prior to an offer to purchase made by the County or an approved housing partner. If required, rehabilitation shall be completed and the subject property will be sold to an income eligible applicant earning no more than 120% of local area median income. The applicant will procure. a fixed -rate mortgage through the Collier County Loan Consortium, local banks, FHA or USDA. The interest rate shall not exceed one (1) percent above the then current 60 day Fannie Mae Index. Additionally, no mortgage insurance is allowed (the only exception being FHA Home Loans), all loans shall be fully documented, no pre - payment penalties are permitted, closing costs must be reasonable and customary and applicants' total debt -to- income ratio must be reasonable as determined by the Collier County Department of Housing and Human Services. All lenders providing first mortgage financing to individuals purchasing far -homes or residential properties directly from Collier Counter where such property was assisted with NSP Funds agree to comply with the bank regulators' guidance for non- traditional mortgages. Refer to Statement on Subprime Mortgage Lending issued by the Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Department of the Treasury, and National Credit Union Administration, available at http: / /www.fdic.gov /regulations /laws /rules /5000- 5160.html. A portion of the NSP Funds used in the acquisition and/or rehabilitation may remain in the home or residential property to provide principal reduction and increase affordability. The homes targeted for NSP assistance will be properties that have been foreclosed, bank - owned, and vacant for at least ninety (90) days. The County shall negotiate with local banks to purchase properties at a discount rate of at least 15 percent from the current market - appraised value. The current market appraisal will be made in conformity with the requirements of the URA at 49 CFR 24.103 and completed within 60 days prior to an offer to purchase made by the County or an approved housing partner. Collier County anticipates that many of the homes or residential properties acquired with NSP Funds will require rehabilitation and/or improvements to bring the home or residential property into compliance with current code for Collier County as detailed in Section C of this Substantial Amendment. Celliei- C -aunty shall Collier County will ensure long term affordability theugh the tse ef a r-eeerQed lie- agar- the -pr-epei4y. if owner-;i4e has beeii assisted theuLxh this pr-ogr-am tfansfefs title te the pfepei4y before t4io aff-afElability per-iod 12 Packet- Page -1633- b rehabilitation. Collier County will ensure long term affordability theugh the tse ef a r-eeerQed lie- agar- the -pr-epei4y. if owner-;i4e has beeii assisted theuLxh this pr-ogr-am tfansfefs title te the pfepei4y before t4io aff-afElability per-iod 12 Packet- Page -1633- 2/28/2012 Item 16.D.6. expires, the assistanee pr-ovided by the Gounty NN411 be sul�jeet to reeaptffe. The County will meniter- assist units en an apiiival — basis -- dufing the zff-efdability —pe i aas described in Section (C)(3) of this substantial amendment. All properties sold to individuals by Collier County receiving assistance from the NSP will be secured by a recorded second mortgage on the subject property in favor of Collier County. In the event the unit is transferred to an owner(s) deemed eligible for assistance under NSP guidelines, the amount of assistance will remain in the subject property to provide principal reduction. In the event the unit is transferred to an owner(s) deemed ineligible for assistance under NSP guidelines, the amount of assistance will be recaptured. The principal reduction second mortgage shall bear an interest rate of 0 %. No payment will be required until the home is sold, transferred, refinanced, is no longer the primary homesteaded residence or is operated for an activity deemed ineligible for assistance under NSP guidelines. At that time the balance of the loan will be repaid. The County will use the minimum affordability period of the federal HOME Investment Partnership Program, 24 CFR 92.252(a), (c), (e) and (f), and 92.254. The minimum affordability periods are as follows: • Up to $15,000 — 5 Years • $15,001 to $40,000— 10 Years • Over $40,001 — 15 Years • New Construction — 20 Years basis. qualified aiid mei4gage feady applieafals. Under- dir-eetion fTam the Heusing, Manager-, stag membefs shell meet The aADDlicant(s) will be qualified based on ter, criteria such as household income, job stability, credit history and liquidity. A minimum of 25 percent of the Collier County NSP Allocation shall be used to assist households earning less than 50 percent local area median income. In no event shall NSP Funds be used to assist households earning more than 120 percent local area median income. All applicants must receive at least eight (8) hours of homebuyer education from a U.S. Department of Housing and Urban Development certified counselor. ill tile eve"t Collier- County is Unable to sei! the aequir-ed home oi= fesidential pr-opeFty, the C:�eunty may, at its b housing. All aff-ar-dability Festrietions 1i te'd abe;,'e shall Still apply afid the, tinit(s) ffitist be eeetipied-43-y households given to these whe afe euffendy haffieless, at fisk ef beffielessness, eldeFly er- speeial needs. All tena-ats must aeser-IFtio cam,— (2) Definiti"•crvrrvf"arfv"rc` ahle fenis" Collier County shall place program income derived from the sale of the home or residential property into a ° ar- e r-evolvingan appropriate fund to recycle the NSP Funds. Program income shall be used for any eligible NSP Activity listed within this Substantial Amendment, a portion of which may be used for program administration. Pursuant to HUD NSP Policy Alert "Program Income in the Neighborhood Stabilization Program" dated July 13 2011 revenues received by developers are NOT considered program income. A minimum of 25 percent of the Collier County NSP Allocation shall be used to assist households earning less than 50 percent local area median income. In no event shall NSP Funds be used to assist households earning low more than 120 percent local area median income. 13 Packet Page -1634- 2/28/2012 Item 16.D.6. Activity #2 - Acquisition and Rehabilitation of Foreclosed Properties for Rental (1) Activi , Name: Acquisition and Rehabilitation of Foreclosed Properties for Rental (2) Activity Type: Acquisition and Rehabilitation of Foreclosed Properties for Rental • 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; • 24 CFR 570.201(a) Acquisition; • 24 CFR 570.201(b) Disposition; • 24 CFR 570.201(i) Relocation; • 24 CFR 570.201(n) Direct homeownership assistance (as modified below); o 570.202 eligible rehabilitation and preservation activities for homes and other residential properties (HUD notes that rehabilitation may include counseling for those seeking to take part in the activity). (3) National Objective: Provides or improves permanent residential structures that will be occupied by a household whose income is at or below 120 percent of area median income. (4) Projected Start Date: February 13, 2009 (5) Projected End Date: February 13, 2014 (6) Responsible Organization: Collier County Department of Housing -apAl Human and Veteran Services; 3-3 4 E T.,,,,;ami Trail, Buildiffg 93339 Tamiami Trail E, Suite 211, Naples, FL 34112. The County may solicit ihrough Requests .. fb pamdevelopers, or subrecipients to undertake this Activity. (7) Location Description: Collier will assist those areas defined in Section A. Areas of Greatest Need — Identified Program Target Areas. The County will continue to monitor local foreclosure data and intend the NSP Program to be flexible to allow for timely reaction to any significant changes in the local housing market. (8) Activity Description: Include a narrative describing the area of greatest need that the activity addresses; the expected benefit to income - qualified persons; and whether funds used for this activity will be used to meet the low income housing requirement for those below 50% of area median income. For housing related activities, include: • tenure of beneficiaries -- rental or homeownership; • duration or term of assistance; • a description of how the design of the activity will ensure continued affordability. For acquisition activities, include: • discount rate For financing activities, include: • range of interest rates Packet Page -1635- 14 2/28/2012 Item 16.D.6. Narrative Response: Collier County's Department of Housing -an41 Human and Veteran Services will be the lead agency in working with local lenders to acquire homes that have been foreclosed, vacant for at least ninety (90) days and on the lender's list of current inventory. The County may partner with various community organizations and agencies' to identify properties suitable for NSP assistance. Nonprofit and/or charitable organizations, with - ate tfaek r-eeer-d of sueeessfully implemeating this aetivity, as well as administering U.S. DepaFtment Housing and r r b Deyel,.pmei + grant f, ,a� developers or subrecipients that demonstrate an ability to successfully �xu�, undertake NSP project may be solicited to perform all or parts of this activity, including, but not limited to, property ownership, rehabilitation maintenance and rental operation. —.1— -ent „r Ho ;,,b and 14,ama' The County shall identify properties for sale in the areas of greatest need. If required, a rehabilitation plan shall be developed and the County and/or housing partners will determine if acquisition of the subject property is financially feasible. Collier County will assist those areas defined in Section A. Areas of Greatest Need - Identified Program Target Areas. The purchase price for all properties acquired with NSP Funds during the initial 18 month period shall be discounted at least one (1) percent from the current market - appraised value of the home or residential property. The current market appraisal will be made in conformity with the requirements of the URA at 49 CFR 24.103 and completed within 60 days prior to an offer to purchase made by the County or an approved housing partner. If required, rehabilitation shall be completed and the subject property will be rented to an income eligible applicant earning no more than 120% of local area median income. Collier County anticipates that many of the homes or residential properties acquired with NSP Funds will require rehabilitation and/or improvements to bring the home into compliance current code for Collier County as detailed in Section C of this Substantial Amendment. r " - shall p '''++.� Rehabilitation ccn xc�x uc ha' ' tio �n Additionally, establishment 4 a east estimate for- the ,N,E)r-k plaii. the County will stfangly green g _ , of housing and il-11.10-1-0-S. r-esidents to the - g. -. ......�. g b .. ... t... . Collier County will ensure long term affordability though t f a ^rd ° toe {.�""N a lien against ef4y l fffitS ehar-ged ShaB eE)flf6rTR tE) the Fair- Mar-k-et Rents (F]MR) lii:Aits as defined in Seetion C-. Definitions and cup. 0 b. The Cetinty will manitef assisted units an an annual basis dtifing the affer-dability period as described in Section (C)(3) of this substantial amendment. T b 0 b b , NSP guidelines, the amount of assistanee will be r-eeaptttfed. g The County will use the minimum affordability period of the federal HOME Investment Partnership Program, 24 CFR 92.252(a), (c), (e) and (f), and 92.254. The minimum affordability periods are as follows: 15 Packet Page -1636- 2/28/2012 Item 16.D.6. • Up to $15,000 — 5 Years • $15,001 to $40,000— 10 Years • Over $40,001 — 15 Years • New Construction — 20 Years A portion of the NSP Funds used in the acquisition and/or rehabilitation may remain in the home or residential property to provide a subsidy to the Feater- developer, or subrecipient and increase the subject property's affordability. Collier County shall place program income derived from the rental operations of the home or residential property into a separate revolving fund to recycle the NSP Funds. Program income shall be used for any eligible NSP Activity listed within this Substantial Amendment, a portion of which may be used for program administration. Pursuant to HUD NSP Policy Alert "Program Income in the Neiiahborhood Stabilization Program" dated July 13 2011 revenues received by developers are NOT considered proizram income. .ter WIN MINIMUM M ..• M,7_10 s .ter WIN MINIMUM A minimum of 25 percent of the Collier County NSP Allocation shall be used to assist households earning less than 50 percent local area median income. In no event shall NSP Funds be used to assist households earning more than 120 percent local area median income. Activity #3 — Purchase Assistance to Acquire Foreclosed Properties (1) Activity Name: Purchase Assistance to Acquire Foreclosed Properties (2) Activity Type: Purchase Assistance to Acquire Foreclosed Properties • 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; • 24 CFR 570.201(a) Acquisition; • 24 CFR 570.201(b) Disposition; • 24 CFR 570.201(i) Relocation; • 24 CFR 570.201(n) Direct homeownership assistance (as modified below); o 570.202 eligible rehabilitation and preservation activities for homes and other residential properties (HUD notes that rehabilitation may include counseling for those seeking to take part in the activity). 16 Packet Page -1637- 2/28/2012 Item 16.D.6. (3) National Objective: Provides or improves permanent residential structures that will be occupied by a household whose income is at or below 120 percent of area median income. (4) Projected Start Date: February 13, 2009 (5) Projected End Date: February 13, 2014 (6) Responsible Organization: Collier County Department of Housing -ate, Human and Veteran Services; 3-3� B T • Trail, Biuil inn 173339 Tamiami Trail E, Suite 211, Naples, FL 34112. The County may solicit through Requests for Qualifications and/or Requests for Proposals organizations /partners to participate in the program. (7) Location Description: Collier County will assist those areas defined in Section A. Areas of Greatest Need — Identified Program Target Areas. The County will continue to monitor local foreclosure data and intend the NSP Program to be flexible to allow for timely reaction to any significant changes in the local housing market. (8) Activity Description: Include a narrative describing the area of greatest need that the activity addresses; the expected benefit to income - qualified persons; and whether funds used for this activity will be used to meet the low income housing requirement for those below 50% of area median income. For housing related activities, include: • tenure of beneficiaries -- rental or homeownership; • duration or term of assistance; • a description of how the design of the activity will ensure continued affordability. For acquisition activities, include: • discount rate For financing activities, include: • range of interest rates Narrative Response: Collier County's Department of Housing and Human Services will be the lead agency in working with local residents to acquire homes that have been foreclosed, vacant for at least ninety (90) days and on the lender's list of current inventory. The County may partner with various community organizations and agencies to assist persons locate properties suitable for NSP assistance. Nonprofit and/or charitable organizations with a proven track record of successfully implementing this activity, as well as administering U.S. Department Housing and Urban Development grant funds, may be solicited to perform all or parts of this activity. The Purchase Assistance Activity shall assist first -time homebuyers by paying a principal reduction for the proposed purchase. The activity provides assistance for the purchase of single family homes, duplexes, condominiums, townhouses or DCA approved manufactured homes. Collier County will assist those areas defined in Section A. Areas of Greatest Need — Identified Program Target Areas. 17 Packet Page -1638- 2/28/2012 Item 16.D.6. The purchase price for all properties acquired with NSP Funds during the initial 18 month period shall be discounted at least one (1) percent from the current market- appraised value of the home or residential property. The current market appraisal will be made in conformity with the requirements of the URA at 49 CFR 24.103 and completed within 60 days prior to an offer to purchase made by the applicant. All households assisted must earn no more than 120 percent of the local area median income. The applicant will procure a fixed -rate mortgage through the Collier County Loan Consortium, local banks, FHA or USDA. The interest rate shall not exceed one (1) percent above the then current 60 day Fannie Mae Index. Additionally, no mortgage insurance is allowed (the only exception being FHA Home Loans), all loans shall be fully documented, no pre - payment penalties are permitted, closing costs must be reasonable and customary and applicants' total debt -to- income ratio must be reasonable as determined by the Collier County Department of Housing and Human Services. All applicants must receive at least eight (8) hours of homebuyer education from a U.S. Department of Housing and Urban Development certified counselor. All lenders providing first mortgage financing for homes or residential properties assisted with NSP Funds agree to comply with the bank .regulators' guidance for non - traditional mortgages. Refer to Statement on Subprime Mortgage Lending issued by the Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Department of the Treasury, and National Credit Union Administration, available at http: / /www.fdic.gov /regulations /laws /rules /5000- 5160.html. Collier County will ensure long term affordability though the use of a recorded lien against the property. The County will monitor assisted units on an annual basis during the affordability period. Additionally, all properties receiving assistance from the NSP will be secured by a recorded second mortgage on the subject property in favor of Collier County. The purchase assistance second mortgage shall bear an interest rate of 0 %. No payment will be required until the home is sold, transferred, refinanced, is no longer the primary homesteaded residence or is operated for an activity deemed ineligible for assistance under NSP guidelines. At that time the balance of the loan will be repaid. All applicants will be taken on a first- come - first - served basis. Applicants must meet NSP income guidelines, as well as the following: applicant must be a first time home buyer, defined as not having home ownership interest in a residential property during the past three (3) years, a single parent with children under the age of eighteen (18) who has recently been divorced and displaced, a displaced victim of domestic violence, or a person displaced as the result of some government action; the assisted residential property must be located within the boundaries of Collier County, Florida and the purchase price may not exceed $200,000. The County will use the minimum affordability period of the federal HOME Investment Partnership Program, 24 CFR 92.252(a), (c), (e) and (f), and 92.254. The minimum affordability periods are as follows: • Up to $15,000 — 5 Years • $15,001 to $40,000 —10 Years a Over $40,001 — 15 Years • New Construction — 20 Years Collier County shall place program income derived from the sale of the home or residential property into a separate revolving fund to recycle the NSP Funds. Program income shall be used for any eligible NSP Activity listed within this Substantial Amendment, a portion of which may be used for program administration. IN Packet Page -1639- 2/28/2012 Item 16.D.6. In no event shall NSP Funds be used to assist households earning more than 120 percent local area median income. All applicants must receive at least eight (8) hours of homebuyer education from a U.S. Department of Housing and Urban Development certified counselor. Activity #4 — Demolition of Acquired Foreclosed Properties (1) Activi Name: Demolition of Acquired Foreclosed Properties (2) Activity Type: Demolition and Clearance of Foreclosed Properties • Demolish blighted structures; • 24 CFR 570.201(d) Clearance for blighted structures only. (3) National Objective: Provides or improves permanent residential structures that will be occupied by a household whose income is at or below 120 percent of area median income. (4) Projected Start Date: February 13, 2009 (5) Projected End Date: February 13, 2014 (6) Responsible Organization: Collier County Department of Housing -and, Human and Veteran Services; E Tam iami T fail Building-443339 Tamiami Trail E, Suite 211, Naples, FL 34112. The County may ,fit thr-eugb Proposals .. the pfegr amexecute a developer agreement to undertake this Activity. (7) Location Description: Collier County will assist those areas defined in Section A. Areas of Greatest Need — Identified Program Target Areas. The County will continue to monitor local foreclosure data and intend the NSP Program to be flexible to allow for timely reaction to any significant changes in the local housing market. (8) Activity Description: Include a narrative describing the area of greatest need that the activity addresses; the expected benefit to income - qualified persons; and whether funds used for this activity will be used to meet the low income housing requirement for those below 50% of area median income. For housing related activities, include: • tenure of beneficiaries -- rental or homeownership; • duration or term of assistance; • a description of how the design of the activity will ensure continued affordability. For acquisition activities, include: • discount rate For financing activities, include: • range of interest rates Narrative Response: Packet Page -1640- 19 2/28/2012 Item 16.D.6. Homes or residential properties acquired through the NSP that are not economically feasible to rehabilitate, pose a health threat or pose safety threat, may be demolished. Demolished properties may be placed in a land bank maintained by Collier County or provided to a local nonprofit provider of affordable housing. Additionally, NSP Funds may be used to construct a new home on the site. Collier County will assist those areas defined in Section A. Areas of Greatest Need — Identified Program Target Areas. If the cost to rehabilitate the unit is greater than fifty (50) percent of the acquisition price, and/or the cost of acquisition and rehabilitation exceeds one hundred (100) percent loan-to- value, the County will consider demolition. Collier County does not intend demolition to be a major activity in its NSP. Rather, the County reserves the right to demolish an acquired property if deemed a more fiscally effective use of NSP Funds. The County shall abide by Uniform Relocation Action (URA) requirements for any affected household where a housing unit is being demolished that has not been vacant for greater than ninety (90) days. Collier County will avoid using NSP Funds to acquire homes or residential properties that have been vacant for fewer than ninety (90) days. Should Collier County or its housing partner construct a new unit on the site, such activity shall be governed by NSP guidelines as discussed in Activity #1 - Acquisition and Rehabilitation of Foreclosed Properties for Resale. Additionally, all households assisted must earn no more than 120 percent of the local area median income. The County will use the minimum affordability period of the federal HOME Investment Partnership Program, 24 CFR 92.252(a), (c), (e) and (f), and 92.254. The minimum affordability periods are as follows: • Up to $15,000 — 5 Years • $15,001 to $40,000 — 10 Years • Over $40,001 — 15 Years • New Construction — 20 Years Collier County shall place program income derived from the sale of the home or residential property into a separate revolving fund to recycle the NSP Funds. Program income shall be used for any eligible NSP Activity listed within this Substantial Amendment, a portion of which may be used for program administration. Activity #5 — Land Banking of Acquired Properties (1) Activity Name: Land Banking of Acquired Properties (2) Activity Type: Land Banking of Acquired Properties Establish land banks for homes that have been foreclosed upon; 24 CFR 570.201(a) Acquisition; 24 CFR 570.201(b) Disposition. (3) National Objective: Provides or improves permanent residential structures that will be occupied by a household whose income is at or below 120 percent of area median income. (4) Projected Start Date: February 13, 2009 Packet Page -1641- 20 2/28/2012 Item 16.D.6. (5) Projected End Date: February 13, 2014 (6) Responsible Organization: Collier County Department of Housing -aff41 Human and Veteran Services; 3301 E Tamiaffii Trail , Buildirb n 'x3339 Tamiami Trail E, Suite 211, Naples, FL 34112. The County may seke-i� di,-,eugh Requests for- Qualifieations andler Requests for- PF@pasals er-ganizatiens,�r�er-s te paAieip4e in �he pr-egf +mexecute a developer agreement to undertake this Activity. (7) Location Description: Collier County will assist those areas defined in Section A. Areas of Greatest Need — Identified Program Target Areas. The County will continue to monitor local foreclosure data and intend the NSP Program to be flexible to allow for timely reaction to any significant changes in the local housing market. (8) Activity Description: Include a narrative describing the area of greatest need that the activity addresses; the expected benefit to income - qualified persons; and whether funds used for this activity will be used to meet the low income housing requirement for those below 50% of area median income. For housing related activities, include: • tenure of beneficiaries -- rental or homeownership; • duration or term of assistance; • a description of how the design of the activity will ensure continued affordability. For acquisition activities, include: • discount rate For financing activities, include: • range of interest rates Narrative Response: Collier County may acquire properties that have been foreclosed and/or vacant for at least ninety (90) days and are on the lender's list of current inventory to be placed in a land bank. The purchase price for all properties acquired with NSP Funds during the initial 18 month period shall be discounted at least one (1) percent from the current market - appraised value of the home or residential property. The current market appraisal will be made in conformity with the requirements of the URA at 49 CFR 24.103 and completed within 60 days prior to an offer to purchase made by the County or an approved housing partner. The County may partner with various community organizations and partners to identify properties suitable for NSP land banking. Properties acquired through this NSP Program for the purpose of being placed in a land bank may be demolished as discussed in Activity #5 - Demolition of Acquired Foreclosed Properties. Collier County will assist those areas defined in Section A. Areas of Greatest Need — Identified Program Target Areas. Collier County will ensure long term affordability though the use of a feeer-ded lien agains4 the pf^p`rty. The C-aunty will menitor- assisted tmits on an atmual basis dur-ing the aff-er-dability peried. Additionally, b b pf:ape4y it raver— of Collier - Ce amendment. 21 Packet Page -1642- 2/28/2012 Item 16.D.6. All NSP 1-assisted housing will be reauired to meet or exceed local and state building codes. All units that require rehabilitation must meet or exceed the current Florida Building Code (FBC). The current code applied in Collier County is 2007 FBC. building S4seqtient redevelopment shall abide by all leeal and state . meet, rehabilitation to , , 2009 the eade will be updated to 2007 FBG. Gellier- Getmty will b dwelling b Additionally, b to pfevide g , stistainability .. fleeding. mitigation b fehabilitati The County will use the minimum affordability period of the federal HOME Investment Partnership Program, 24 CFR 92.252(a), (c), (e) and (f), and 92.254. The minimum affordability periods are as follows: • Up to $15,000 — 5 Years • $15,001 to S40,000— 10 Years • Over $40,001 — 15 Years • New Construction — 20 Years A minimum of 25 percent of the Collier County NSP Allocation shall be used to assist households earning less than 50 percent local area median income. In no event shall NSP Funds be used to assist households earning more than 120 percent local area median income. An NSP- assisted property may not be held in a land bank for more than ten (10) years without obligating the property for a specific, eligible redevelopment of that property in accordance with NSP requirements. Collier County shall place program income derived from the sale of the home or residential property into a sepafate FevelvinRan appropriate fund to recycle the NSP Funds. Program income shall be used for any eligible NSP Activity listed within this Substantial Amendment, a portion of which may be used for program administration. Pursuant to HUD NSP Policv Alert "Program Income in the Neiahborhood Stabilization Program" dated July 13, 2011, revenues received by developers are NOT considered program income. I. Total Budget: $7,306,755 Narrative Response: Refer to Exhibit "A ". The U.S. Department of Housing and Urban Development allows up to 10 percent of the NSP grant provided to Collier County and up to 10 percent of program income earned for general administration and planning activities as those are defined at 24 CFR 570.205 and 206. The 10 percent limitation applies to the grant as a whole. Additionally, HUD recognizes the need to move forward rapidly to prepare this substantial amendment and to undertake other administrative actions. Therefore HUD has granted permission to incur pre -award costs effective September 29, 2008 in preparation of the substantial amendment. 22 Packet Page -1643- lip. 11111LOW-1 All NSP 1-assisted housing will be reauired to meet or exceed local and state building codes. All units that require rehabilitation must meet or exceed the current Florida Building Code (FBC). The current code applied in Collier County is 2007 FBC. building S4seqtient redevelopment shall abide by all leeal and state . meet, rehabilitation to , , 2009 the eade will be updated to 2007 FBG. Gellier- Getmty will b dwelling b Additionally, b to pfevide g , stistainability .. fleeding. mitigation b fehabilitati The County will use the minimum affordability period of the federal HOME Investment Partnership Program, 24 CFR 92.252(a), (c), (e) and (f), and 92.254. The minimum affordability periods are as follows: • Up to $15,000 — 5 Years • $15,001 to S40,000— 10 Years • Over $40,001 — 15 Years • New Construction — 20 Years A minimum of 25 percent of the Collier County NSP Allocation shall be used to assist households earning less than 50 percent local area median income. In no event shall NSP Funds be used to assist households earning more than 120 percent local area median income. An NSP- assisted property may not be held in a land bank for more than ten (10) years without obligating the property for a specific, eligible redevelopment of that property in accordance with NSP requirements. Collier County shall place program income derived from the sale of the home or residential property into a sepafate FevelvinRan appropriate fund to recycle the NSP Funds. Program income shall be used for any eligible NSP Activity listed within this Substantial Amendment, a portion of which may be used for program administration. Pursuant to HUD NSP Policv Alert "Program Income in the Neiahborhood Stabilization Program" dated July 13, 2011, revenues received by developers are NOT considered program income. I. Total Budget: $7,306,755 Narrative Response: Refer to Exhibit "A ". The U.S. Department of Housing and Urban Development allows up to 10 percent of the NSP grant provided to Collier County and up to 10 percent of program income earned for general administration and planning activities as those are defined at 24 CFR 570.205 and 206. The 10 percent limitation applies to the grant as a whole. Additionally, HUD recognizes the need to move forward rapidly to prepare this substantial amendment and to undertake other administrative actions. Therefore HUD has granted permission to incur pre -award costs effective September 29, 2008 in preparation of the substantial amendment. 22 Packet Page -1643- 2/28/2012 Item 16.D.6. J. Performance Measures (e.g., units of housing to be acquired, rehabilitated, or demolished for the income levels of households that are 50 percent of area median income and below, 51 -80 percent, and 81 -120 percent): Narrative Response: Collier County shall include performance measures in all agreements with local partners contracted with to implement activities described in this Substantial Amendment. Such measures shall ensure funds are expended within the initial NSP required 18 -month time period. Collier County shall monitor all progress to ensure the housing activities listed in this amendment are completed in a timely manner and local benefit achieved as soon as possible. Collier County estimates the total number of units assisted with the initial $7,306,755 allocation to be 59. As assisted units are sold or transferred, program income shall return to the County. The County may use the program income received for any activities listed in this substantial amendment, a portion of which may be used for program administration. The following is a list, by income level, of total units of housing to be assisted with NSP Funds: • Low Income — households earning 50% of area median income or less; o 15 units • Moderate Income —households earning between 51% and 80% area median income; o 22 units • Middle Income —households earning between 81% and 120% area median income; o 22 units Summary of Projected Number of Units Assisted Activity Type Low Income Moderate Income Middle Income Acquisition for Resale 3 13 13 Acquisition for Rental 12 2 2 Direct Assistance 0 3 3 Demolition 0 3 3 Land Banking 0 1 1 Total 15 22 22 The Collier County Neighborhood Stabilization Program Substantial Amendment is adopted this 14`h day of February, 2012. ATTEST: DWIGHT E. BROCK, CLERK mm BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA , DEPUTY CLERK FRED W. COYLE, CHAIRMAN APPROVED AS TO FORM AND LEGAL SUFFICIENCY JENNIFER WHITE ASSISTANT COUNTY ATTORNEY Packet Page -1644- 23 2/28/2012 Item 16.D.6. SUMMARY OF RECOMMENDED CHANGES NEIGHBORHOOD STABILIZATION PROGRAM 3 ACTION PLAN Grantee Information Page 1 Revise "NSP3 Program Administrator Contact Information" Determination of Areas of Greatest Need and Applicable Tiers Page 3 Revise to increase estimated number of units Page 4 Delete "Target Area Two — Naples Park" Meeting Low - Income Target Page 9 Revise narrative to designate Developer and use homeownership Demolition or Conversion of LMI Units Page 10 Revise to increase estimated number of units Activity Number 1 Page 11 Revise to designate Developer Page 11 Delete "rehabilitate" as a NSP3 funded activity Page 12 Modify to replace Collier County with Developer Page 12 Delete "renters" as tenure of beneficiaries Page 12 Replace "principal buy down" with Developer Page 13 Modify to replace Collier County with Developer Page 13 Delete reference to rental housing Page 13 Delete "Neighborhood ID 1827545: Naples Park" Page 13 Revise NSP3 Budget Page 13 Revise performance measures Page 14 Revise "Administrator Contact Info" Activity Number 2 Page 14 Revise to designate Developer Page 14 Delete "rehabilitate" as a NSP3 funded activity Page 14 Modify to replace Collier County with Developer Page 14 Replace "rent" with "sell" Page 15 Delete "renters" as tenure of beneficiaries Page 15 Modify to replace Collier County with Developer Page 16 Delete narrative relating to rental housing Page 16 Delete "Neighborhood ID 1827545: Naples Park" Page 16 Revise NSP3 budget Page 16 Revise performance measures Page 16 Revise "Administrator Contact Info" Pagel of 2 Packet Page -1645- Activitv Number 3 Page 17 Page 17 Pages 17 -18 Page 18 Page 18 Page 18 Activitv Number 4 Pages 18 -20 Activity Number 5 Pages 20 -22 Activitv Number 6 Pages 22 -25 Activitv Number 7 Page 25 Page 25 Revise to designate Developer Delete narrative relating to NSP3 funding redevelopment Delete "Neighborhood ID 1827545: Naples Park" Revise NSP3 budget Revise performance measures Revise "Administrator Contact Info" Delete entire Activity from Action Plan Delete entire Activity from Action Plan Delete entire Activity from Action Plan Revise Activity Number from "7" to "4" Revise "Administrator Contact Info" ** END ** Packet Page -1646- 2/28/2012 Item 16.D.6. Page 2 of 2 v MO 2/28/2012 Item 16.D.6. 1. NSP3 Grantee Information NSP3 Program Administrator Contact Information Name (Last, First) Grant, Kimberley Email Address kimberleygrant @colliergov.net Phone Number 239 - 252 -4663 Mailing Address 3339 Tamiami Trail E., Suite 211, Naples, Florida 34112 -5361 2. Areas of Greatest Need Map Submission The map generated at the HUD NSP3 Mapping Tool for Preparing Action Plan website is included as an attachment. Data Sources Used to Determine Areas of Greatest Need Describe the data sources used to determine the areas of greatest need. Response Collier County consulted local, state, and national data sources in determining the areas of greatest need. The use of myriad data sources allowed both a macro and micro and analysis of the areas of critical concern, local and national trends, forecasting future demand, and leveraging of existing resources. The goal of Collier County when determining the areas of greatest need was to stabilize neighborhoods, arrest decline, and produce a more sustainable, inclusive, and integrated community. Local Data Source: Naples Area Board of Realtors Multiple Listing Service (MLS). Qualifiers: Excluded Marco Island, vacant land, commercial property, multi - family, and time- shares. Included mobile homes, manufactured homes, short sales, and foreclosures. All properties must have a minimum of 350 square feet. Data Used: Median sales price, median list price, number of listings, and number of sales from January 2010 to October 2010. The data provided a macro analysis of patterns and trends in the countywide residential real estate market. There continues to be a significant delta between the number of listings versus number of sales, and the median listing price versus the median sales price. For example, in October 2010 there were 434 sales compared to 7,966 properties listed; only 5.45% of properties listed for sale in October 2010 sold. Likewise, the median listing price in October 2010 was $324,000 compared to a median sales price in the same month of $165,000; the median sales price was approximately half of the median list price. It may be true that until these deltas display an extended decrease in severity, the local housing market will continue to struggle. However, the dichotomy between the rural housing market and the coastal housing market may distort the median data figures; thus, drawing conclusions at this level of analysis may be problematic. For example, the December 2010 sale of a home in the prestigious Port Royal community for $14.55 million dollars will likely distort the countywide median sales price data for that NSP3 Action Plan Collier County, Florida Packet Page -1647- Page 1 2/28/2012 Item 16.D.6. period. Source: Various; complied and reported in the U.S. Department of Housing and Urban Development's (HUD) NSP3 Downloodable Data Files. Qualifiers: Data reflects market conditions for the second quarter of 2010. For further details, consult the "Data Dictionary" prepared by HUD and available at www.huduser.org /portal /datasets /NSP.htmi. Data Used: Collier County was divided into 223 distinct areas by HUD when preparing data to assist in calculating the formula allocations amounts for NSP3. All data were used by HUD to calculate a NSP3 foreclosure need score ranging from one to twenty, with twenty being the worst. Locally, particular attention was paid to the following factors: foreclosure need score, percent low- moderate households, USPS vacancy rates, percentage of high -cost mortgages, and the estimate number of properties needed to make an impact. In order to be eligible for participation in NSP3, an area must have a foreclosure need score of at least seventeen on the scale of twenty. Of the 223 areas HUD divided Collier County into, 206 have a foreclosure need score of at least 17 (92.38 percent). However, many of the areas would require expenditures in excess of the available NSP3 funding. Collier County must seek to deeply target funding into those areas where HUD believes we can make an impact based upon current market conditions and projections for future decline or instability. Source: Collier County NSP1 experiences Qualifiers: Collier County was allocated $7,306,750 and successfully obligated 100 percent of the funds within 18 months. The program design generates program income upon sale to an income - qualified person or family. As such, activities are ongoing. Data Used: Acquisition locations, average acquisition cost, average rehabilitation cost, and return of program income. Collier County's NSP1 program has been successful in acquiring properties in focused geographical areas most adversely affected by the foreclosure crisis. When determining areas of greatest need for NSP3, consideration was given to properties approved using NS131 funds. Furthermore, having already acquired over 70 properties with NSP1, Collier County has a considerable amount of data on costs. As such, we sought areas for NSP3 funding that we have adequate funding to make a real impact. State Data Source: Shimberg Center for Housing Studies, University of Florida. Qualifiers: Data projects affordable housing needs based upon the 2000 Census. While this data is dated, the Center was established in 1988 by the Florida legislature (Section 240.5111, Florida Statutes) as the State's source of research relating to the problems and solutions associated with the availability of affordable housing in Florida. As such, one must consider the data in any analysis of affordable housing needs. Data Used: Collier County used cost burdened household data, divided by home ownership and rental, to assess the types of housing units projected to meet an unmet need in the community. Cost burdened is defined as a household spending greater than 30 percent of household income on housing related expenses. Analyzing data from the Shimberg Center, Collier County is projected to have an average annual increase of 739.55 cost burdened household units between 2010 and 2030. The data shows the increase by NSP3 Action Plan Collier County, Florida Packet Page -1648- Page 2 2/28/2012 Item 16.D.6. income range and housing type (home ownership versus rental) and may prove a valuable tool in the long range planning and implementation of the NSP3 program. National Data Source: Neighborhood Stabilization Program Resource Exchange and other sources Qualifiers: Information was assembled to ensure Collier County's NSP3 areas of greatest need could be effectively served with the resources available using best practices, toolkits, and examples of successful implementations in NSP1 and NSP2. Finally, national media coverage on housing related issues was used to provide context within the broader economic crisis. Much of this data is not quantitative, but remains valuable when selecting target areas. Data Used: Two toolkits available on the Neighborhood Stabilization Program Resource Exchange were of particular benefit when determining areas of greatest need: Instructions for Completing the NSP3 Substantial Amendment or Abbreviated Action Plan and the NSP3 Program Design Guidebook. Figure 1 -2 in the NSP3 Program Design Guidebook was used to consider market types and the implications for program design. For example, in an area with low demand and high supply of eligible properties, Collier County may undertake demolition of blighted structures and land bank for future redevelopment. National media coverage was used to provide a context within the broader economic crisis when planning activities and selecting areas of greatest need. Topics considered included, but were not limited to: the growth in families "doubling up" due to loss of income or foreclosure; decreasing local government budgets resulting in, among other things, fewer funds for maintaining abandoned houses and funding social service initiatives; challenges in providing effective homeless prevention; uncertainty surrounding certain documents used by banks during foreclosure proceedings; presence of "Chinese Drywall" in homes and the adverse effects on owners; the state of housing and the uncertainties surround future prices; Florida Economic Outlook: July 2010 (Wells Fargo). Determination of of r Applicable Tie' IN Describe how the areas of greatest need were established and whether a tiered approach is being utilized to determine the distribution of funding. Response: It is not proper, nor is it the intent, for the Collier County NSP3 to compete with the private market; the private market will take care of the private market. Rather, the Collier County NSP3 should deeply target those areas that are not attractive to private investors and homebuyers, and which are causing instability, deterioration, blight, and unstable conditions in the community. For purposes of NSP3, HUD divided Collier County into 223 unique target areas. Providing this number of small target areas will permit Collier County to deeply target areas adversely impacted by the foreclosure crisis. However, the County's success will depend on the availability of eligible properties. As such, Collier County will employ a tiered approach. Based upon data collected from NSP1, Collier County NSP3 allocation will fund activities on approximately thirty -one (31) units. A tiered approach will further define within the general target area, sub -areas (or tiers), to ensure that the County is able to meet the impact criteria provided by HUD. Where funds are insufficient to meet the impact criteria, the County will seek other tiers in which funds may be deeply targeted and produce the results expected by HUD, the Housing and Economic Recovery NSP3 Action Plan Collier County, Florida Packet Page -1649- Page 3 2/28/2012 Item 16.D.6. Act of 2008, and the Wall Street Reform and Consumer Protection Act of 2010 (Dodd -Frank Act). Finally, when assessing tiers to target with NSP3, the County will consider properties assisted with NSP1. For example, the County has made great efforts to stabilize an area loosely defined as Golden Gate City. Further investment in this area and the associated tiers will maximum the effects of both NSP1 and NSP3. Additionally, the past and future use of NSP1 in conjunction with NSP3 may assist the County in meeting the impact criteria. The following have been selected as the target areas for Collier County's NSP3: Tareet Area One — Golden Gate Citv (HUD Neighborhood ID 1108764 • Tier One — Census Tract 0104.10 • GeoID 12021923012630001041OU1 • GeoID 120219230126300010410U2 o GeoID 1202192301263000104 IOU 3 • Tier Two — Census Tract 0104.09 o GeoID 120219230126300010409U1 o GeoID 120219230126300010409U2 o GeoID 120219230126300010409U3 o GeoID 120219230126300010409U4 o GeoID120219230126300010409U5 • Tier Three — Census Tract 0104.11 o GeoID 120219230126300010411U1 o GeoID 120219230126300010411U2 o GeoID 120219230126300010411U3 • GeoID 120219230126300010411113 • GeoID 120219230126300010411R1 Tareet Area Two — East Naples Bayshore Gateway_CRA (HUD Neighborhood ID 3981140 • Tier One — Census Tract 0107.01 o GeoID 120219230199999010701U4 o GeoID 120219230199999010701U1 o GeoID 120219230199999010701U2 • GeoID 1202192301999990107010 • GeoID 120219230199999010701R2 Please note that the above data is presented and identified as contained in HUD's NSP3 Mapping Tool. Copies of the reports are attached to this application. 3. Definitions and Descriptions Definitions Term Definition Blighted Structure In conformance with Section 163.340, Florida Statutes, a "blighted structure" means a structure that is deteriorated, or deteriorating, in which conditions, as indicated by government- maintained statistics or other studies, are NSP3 Action Plan Collier County, Florida Packet Page -1650- Page 4 2/28/2012 Item 16.D.6. leading to economic distress or endangering life or property, and in which two or more of the following factors are present: a) Predominance of defective or inadequate street layout, parking facilities, roadways, bridges, or public transportation facilities; b) Aggregate assessed value of real property in the area for ad valorem tax purposes have failed to show any appreciable increase over the 5 years prior to the finding of such condition; c) Faulty lot layout in relation to size, adequacy, accessibility, or usefulness; d) Unsanitary or unsafe conditions; e) Deterioration of site or other improvements; f) Inadequate and outdated building density patterns; g) Falling lease rates per square foot of office, commercial, or industrial space compared to the remainder of the county or municipality; h) Tax or special assessment delinquency exceeding the fair value of the land; i) Residential and commercial vacancy rates higher in the area than in the remainder of the county or municipality; j) Incidence of crime in the area higher than in the remainder of the county or municipality; k) Fire and emergency medical service calls to the area proportionately higher than in the remainder of the county or municipality; 1) A greater number of violations of the Florida Building Code in the area than the number of violations recorded in the remainder of the county or municipality; m) Diversity of ownership or defective or unusual conditions of title which prevent the free alienability of land within the deteriorated or hazardous area; or n) Governmentally owned property with adverse environmental conditions caused by a public or private entity. However, the term "blighted structure" or "blighted area" also means any structure or area in which at least one of the factors identified in paragraphs (a) through (n) are present and all taxing authorities subject to s. 163.387(2)(a) agree, either by interlocal agreement or agreements with the agency or by resolution, that the structure or area is blighted. Affordable Rents 24 CFR § 92.252 NSP3 Action Plan Collier County, Florida Rents shall not exceed the Fair Market Rents (FMR) as published annually by HUD for the Naples — Marco Island Metropolitan Statistical Area (MSA). Furthermore, the maximum rent are the lesser of: 1) The fair market rent for existing housing for comparable units in the area as established by HUD under 24 CFR 888.111; or 2) A rent that does not exceed 30 percent of the adjusted income of a family whose annual income equals 65 percent of the median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit. Packet Page -1651- Page 5 2/28/2012 Item 16.D.6. Furthermore, when the NSP3 assisted unit is occupied by very low- income families the rent requirements are: 1) The rent does not exceed 30 percent of the annual income of a family whose income equals 50 percent of the median income for the area, as determined by HUD, with adjustments for smaller and larger families. However, if the rent determined under this paragraph is higher than the applicable rent under paragraph (1) or (2) of this section, then the maximum rent for units under this paragraph is that calculated under paragraph (1) or (2) of this section; and 2) The rent does not exceed 30 percent of the family's adjusted income. If the unit receives Federal or State project -based rental subsidy and the very low- income family pays as a contribution toward rent not more than 30 percent of the family's adjusted income, then the maximum rent (i.e., tenant contribution plus project -based rental subsidy) is the rent allowable under the Federal or State project -based rental subsidy program. Descriptions Term Definition Long -Term Affordability 24 CFR 92.252(a), (c), (e), and (f), and 92.254 NSP3 Action Plan Collier County, Florida Rental: Long -Term Affordability The NSP3- assisted units must meet the affordability requirements for not less than the applicable period specified below, beginning after project completion. The affordability requirements for NSP3- assisted rental units apply without regard to the term of any loan or mortgage or the transfer of ownership, except that the affordability restrictions may terminate upon foreclosure or transfer in lieu of foreclosure. Collier County will enforce long -term affordability through the use of a recorded lien, covenant, or deed restriction against the assisted property. Rental housing activity Minimum period of affordability in years Rehabilitation or acquisition of existing housing per unit amount of NSP3 funds: 5 Under$15, 000 .................... ............................... $15,000 to $40, 000 ............ ............................... 10 Over $40,000 or rehabilitation involving 15 refinancing.... New construction or acquisition of newly 20 constructed housing ........... ............................... Subsequent rents during the affordability period will be calculated and applied in conformance with 24 CFR 92.252(f). Homeownership: Long -Term Affordability The NSP3- assisted housing must meet the affordability requirements for not Packet Page -1652- Page 6 2/28/2012 Item 16.D.6. less than the applicable period specified in the following table, beginning after project completion. These restrictions are a minimum and Collier County may elect to impose longer affordability periods. The per unit amount of NSP3 funds and the affordability period that they trigger are described more fully below under "Homeownership: Recapture Provisions." Homeownership assistance NSP3 amount per -unit Minimum period of affordability in years Under $15, 000 .................... ............................... 5 $15,000 to $40, 000 ............ ............................... 10 Over $40, 000 ...................... ............................... 15 Homeownership: Recapture Provisions The recapture provisions will ensure that Collier County recoups all or a portion of the NSP3 assistance benefiting the homebuyer, if the housing does not continue to be the principal residence of the family for the duration of the period of affordability. The period of affordability is based upon the total amount of NSP3 funds subject to recapture described above. Collier County may choose to recapture the entire amount of NSP3 assistance or a reduced amount on a prorata basis for the time the homeowner has owned and occupied the housing measured against the required affordability period. The net proceeds may be divided proportionally as set forth in the following mathematical formulas: NSP3 investment X Net proceeds= NSP3 amount to County NSP3 investment + homeowner investment homeowner investment X Net proceeds = amount to homeowner NSP3 investment + homeowner investment Collier County may permit the homebuyer to recover the homebuyer's entire investment (downpayment and capital improvements made by the owner since purchase) before recapturing the NSP3 investment. Housing Rehabilitation Standards General Standards All NSP3- assisted housing will be required to meet or exceed local and state building codes. All units that require rehabilitation must meet or exceed the current Florida Building Code (FBC). The current code applied in Collier County is 2007 FBC. NSP3 Action Plan Collier County, Florida Collier County will incorporate energy- efficient, sustainable building practices, including the use of green building to provide long -term affordability and attractiveness within the community. Furthermore, Collier County encompasses a large coastal area that subjects the residents to the risk of hurricanes and severe flooding. As such, all NSP3- assisted housing will undergo hurricane hardening and damage mitigation, when feasible. Packet Page -1653- Page 7 2/28/2012 Item 16.D.6. In compliance with the requirements of HUD, the following standards will apply to gut rehabilitation and new construction projects. 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. a) Residential buildings up to three stories must be designed to meet the standard for Energy Star Qualified New Homes; b) Mid- or high -rise multifamily housing must be designed to meet American Society of Heating, Refrigerating, 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) In further compliance with the requirements of HUD, the following standards will apply to all NSP3- assisted housing units. a) All rehabilitated units must meet the following standards to the extent applicable to the work undertaken: i. Older obsolete products and appliances (such as windows, doors, lighting, hot water heaters, furnaces, boilers, air conditioning units, refrigerators, clothes washers and dishwashers) must be replaced with Energy Star -46 labeled products; ii. Water efficient toilets, showers, and faucets, such as those with the WaterSense label must be installed; iii. Housing must be improved to mitigate the impact of disasters (e.g. hurricane, flooding, and fire) HUD also encourages the adoption of energy efficient and environmentally - friendly green elements. Collier County will seek to incorporate the standards and policies of the Florida Green Building Coalition. A copy of the standards and policies is attached to this Action Plan. 4. Low - Income Targeting Low - income Set - Aside Amount Identify the estimated amount of funds appropriated or otherwise made available under the NSP3 to be used to provide housing for individuals or families whose incomes do not exceed 50 percent of area median income. Response: Collier County will set -aside 25 percent of funds appropriated to the County to provide housing for individuals or families whose incomes do not exceed 50 percent of the area median income, adjusted for household size. The final dollar amount is 25 percent of the County's appropriation, rounded up to the nearest thousand. Please note that activities funded with program income are not subject to the 25 NSP3 Action Plan Collier County, Florida Packet Page -1654- Page 8 2/28/2012 Item 16.D.6. percent set -aside requirement, however they may be used to meet the regulatory requirement. Total low- income set -aside percentage (must be no less than 25 percent): 25.00% Total funds set aside for low- income individuals = $972,000.00 Meeting Low - income Target Provide a summary that describes the manner in which the low- income targeting goals will be met. Response: Habitat for Humanity of Collier County, Inc. (hereinafter, "Habitat for Humanity" or "Developer"), has been successful in providing homeownership to households earning less than 50 percent of the area median income. Through a developer agreement, Collier County shall partner with Habitat for Humanity to meet the low- income targeting requirement through the provision of affordable homeownership. S. Acquisition and Relocation Demolition or Conversion of LMI Units Does the grantee intend to demolish or convert any low- and moderate - income dwelling units (Le., <_ 80% of area median income)? Yes If ves. fill in the table below. Question Number of Units The number of low- and moderate - income dwelling units —i.e., _< 80% of area median income — reasonably expected to be demolished or converted as a direct result of NSP- assisted activities. 3 units The number of NSP affordable housing units made available to low -, moderate -, and middle- income households — i.e., <_ 120% of area median income — reasonably expected to be produced by activity and income level as provided for in DRGR, by each NSP activity providing such housing (including a proposed time schedule for commencement and completion). All activities have an estimated commencement date of March 1, 2011 and completion date of February 28, 2014. Activity 1 LM M H –14 units Activity 2 LH25 – 6 units NSP3 Action Plan Collier County, Florida Packet Page -1655- Page 9 2/28/2012 Item 16.D.6. The number of dwelling units reasonably expected to be made available for households whose income does not exceed 50 percent of area median income. 6 units 6. Public Comment Citizen Participation Plan Briefly describe how the grantee followed its citizen participation plan regarding this proposed substantial amendment or abbreviated plan. Response: The Collier County Citizen Participation Plan was adopted January 9, 2001. The following steps were taken in preparation of this NSP3 substantial amendment: 1. Technical Assistance — In addition to providing public access to the draft and development document used in the preparation of this substantial amendment, Collier County was available to provide technical assistance to citizens, citizen groups, nonprofit organizations and agencies that requested assistance in understanding the NSP3. 2. Public Hearings /Meetings — The development of the Collier County NSP3 substantial amendment was contemplated in regular, publicly advertised meeting(s) of the Affordable Housing Advisory Committee, the Board of County Commissioners, and advertised in a newspaper of general circulation. 3. Fifteen -Day Public Comment Period —The County published notice of the availability of the proposed NSP3 substantial amendment in a newspaper of general circulation and posted it on the County's website. The publication described, among other items, the total County appropriation, target areas, and proposed activities. 4. County Commission — Citizen participation requirements shall not be construed to restrict the responsibility or authority of the County for the development and execution of the NSP3 program activities. The County Commission remains the sole approving authority for the program and any amendments. Summary of Public Comments Received. No public comments were received. 7. NSP Information by Activity Activity Number 1 Activity Name Acquisition and Rehabilitation (LMMH) Uses Select all that apply: ❑ Eligible Use A: Financing Mechanisms ® Eligible Use B: Acquisition and Rehabilitation ❑ Eligible Use C: Land Banking ❑ Eligible Use D: Demolition ❑ Eligible Use E: Redevelopment CDBG Activity or Activities 24 CFR 570.201(a) Acquisition, (b) Disposition, (i) Relocation, and (n) Direct homeownership assistance (as modified below); 24 CFR 570.202 eligible rehabilitation and preservation activities for homes and other residential properties. HUD notes that any of the activities listed above may include NSP3 Action Plan Collier County, Florida Page 10 Packet Page -1656- 2/28/2012 Item 16.D.6. NSP3 Action Plan Collier County, Florida Packet Page -1657- Page 11 required homebuyer counseling as an activity delivery cost. National Objective Low Moderate Middle Income Housing (LMMH) Activity Number 1 will provide funding to a Developer to acquire properties that have been abandoned or foreclosed upon. Once rehabilitation is complete, utilizing funding provided by the Developer, the home will be sold to persons or households earning not greater than 120 percent area median income, adjusted for household size. The activity will attempt to stabilize neighborhoods, arrest decline, and create a more sustainable, integrated, and affordable community. The local housing - market conditions in the target areas generally consists of elevated vacancy rates, greater percentage of homes financed with a high cost loan, a large number of mortgages seriously delinquent (90+ or more delinquent or in - foreclosure), and a significant percentage decline in home values since the peak value. For example, since the peak value, home values in the target areas have fallen 48.4 percent. The Developer will seek to purchase homes and residential properties that have been abandoned or foreclosed upon, in order to sell or redevelop such homes and properties. When selecting target areas for this activity, Collier County paid close attention to the impact score assigned by HUD. The impact score is the estimated number of properties needed to make an impact in the identified target area. Activity Description Consideration of the impact score is especially important because, as HUD states, "nationwide there have been over 1.9 million foreclosure completions in the past two years. NSP 1, 2, and 3 combined are estimated to only be able to address 100,000 to 120,000 foreclosures. To stabilize a neighborhood requires focused investment." Therefore, target areas were selected in which Collier County would be able to make the impact recommended by HUD. When providing assistance to persons, families, non - profit agencies, or other organizations, the following general terms will apply: • Range of interest rates: 0 percent to 5 percent • Term of assistance: 5 years to 30 years • Tenure of beneficiaries: homeowners The activity is expected to benefit income - qualified persons or households by producing safe, decent, and affordable housing. Additionally, the Developer may seek to incorporate energy efficient and environmentally - friendly green elements in each project. One of the major obstacles to affordable homeownership is saving for a down payment. Oftentimes the low- and very-low income residents of Collier County are struggling to pay a monthly rent payment, as well as other household expenses. This activity will benefit income - qualified persons or NSP3 Action Plan Collier County, Florida Packet Page -1657- Page 11 2/28/2012 Item 16.D.6. NSP3 Action Plan Collier County, Florida Packet Page -1658- Page 12 households by offering a newly rehabilitated property through Habitat for Humanity to reduce the heavy burden of saving a sizable down payment. Another factor affecting residents within the target areas is reduced employment opportunities. Collier County has long relied on industries fueled by population growth to provide employment opportunities for residents. According to the Collier County Economic Development Council's 2009 Market Facts report, construction, retail trade and accommodations, and food service employ the largest number of Collier County residents. All three industries have an average wage well below the area median income ($44,592, $29,120, and $22,683 respectively) thereby making any disruption in income potentially devastating. This activity will benefit income - qualified persons or households be providing affordable housing that is integrated and, whenever possible, located near employment centers and public transportation. This activity will produce housing that is intended to remain affordable. In compliance with NSP3 regulations, Collier County has adopted as a safe harbor the affordability standards of the HOME program at 24 CFR 92.252(a), (c), (e), and (f), and 92.254. The Developer will seek, to the maximum extent possible, to hire or cause to be hired employees who reside in the vicinity of NSP3 projects or contract with small businesses that are owned and operated by persons residing in the vicinity of the project. For the purposes of NSP3, HUD defines "vicinity" as each neighborhood identified within this document as being the areas of greatest need. The following are examples of activities that may be used to accomplish this initiative: • Outreach to local area residents and businesses; • Inclusion of Section 3 and other relevant language in all applicable contracts; • Advertising of economic opportunities to local area residents and businesses - Neighborhood ID 1108764: Golden Gate City • Tier One — Census Tract 0104.10 Location Description • Tier Two — Census Tract 0104.09 . Tier Three — Census Tract 0104.11 Neighborhood ID 3981140: East Naples Bayshore Gateway CRA • Tier One — Census Tract 0107.01 Source of Funding Dollar Amount NSP3 $ $2,136,293 Budget $ NSP3 Action Plan Collier County, Florida Packet Page -1658- Page 12 2/28/2012 Item 16.D.6. Activity Number 2 $ Total Budget for Activity $ $2,136,293 Performance Measures Acquire and rehabilitate fourteen (14) units of housing for LMMH. Projected Start Date, 1, 2011 Projected End Date February 28, 2014 Responsible Organization Name Collier County Department of Housing, Human, and Veteran Services Location 3339 Tamiami Trail E., Suite 211, Naples, Florida 34112 Administrator Contact info 239 -252 -4663 kimberleygrant @colliergov.net Activity Number 2 Activity Name Acquisition and Rehabilitation (L1425) Select all that apply: ❑ Eligible Use A: Financing Mechanisms ® Eligible Use B: Acquisition and Rehabilitation Use ❑ Eligible Use C: Land Banking ❑ Eligible Use D: Demolition ❑ Eligible Use E: Redevelopment 24 CFR 570.201(a) Acquisition, (b) Disposition, (i) Relocation, and (n) Direct CDBG Activity or homeownership assistance (as modified below); 24 CFR 570.202 eligible Activities rehabilitation and preservation activities for homes and other residential properties. HUD notes that any of the activities listed above may include required homebuyer counseling as an activity delivery cost. National Objective Low- Income Housing to Meet 25% Set -Aside (LH25) Activity Number 2 will provide funding to a Developer to acquire properties that have been abandoned or foreclosed upon. Once rehabilitation is complete, utilizing funding provided by the Developer, the home will be rented to persons or households earning not greater than 50 percent area median income, adjusted for household size. The County will favor the end - use of rental housing to provide affordable housing to this income population. The activity will attempt to stabilize neighborhoods, arrest decline, and create a more sustainable, integrated, and affordable community. The local housing Activity Description market conditions in the target areas generally consists of elevated vacancy rates, greater percentage of homes financed with a high cost loan, a large number of mortgages seriously delinquent (90+ or more delinquent or in foreclosure), and a significant percentage decline in home values since the peak value. For example, since the peak value, home values in the target areas have fallen 48.4 percent. The Developer will seek to purchase homes and residential properties that have been abandoned or foreclosed upon, in order to sell or redevelop such homes and properties. When selecting target areas for this activity, Collier County paid close attention to the impact score assigned by HUD. The impact NSP3 Action Plan Collier County, Florida Packet Page -1659- Page 13 NSP3 Action Plan Collier County, Florida 2/28/2012 Item 16.D.6. score is the estimated number of properties needed to make an impact in the identified target area. Consideration of the impact score is especially important because, as HUD states, "nationwide there have been over 1.9 million foreclosure completions in the past two years. NSP 1, 2, and 3 combined are estimated to only be able to address 100,000 to 120,000 foreclosures. To stabilize a neighborhood requires focused investment." Therefore, target areas were selected in which Collier County would be able to make the impact recommended by HUD. When providing assistance to persons, families, non - profit agencies, or other organizations, the following general terms will apply: • Range of interest rates: 0 percent to 5 percent • Term of assistance: 5 years to 30 years • Tenure of beneficiaries: homeowners The activity is expected to benefit persons or households with incomes at or below 50 percent of the area median income ( "LH25 ") by producing safe, decent, and affordable housing. Additionally, the Developer may seek to incorporate energy efficient and environmentally - friendly green elements in each project. Another factor affecting residents within the target areas is reduced employment opportunities. Collier County has long relied on industries fueled by population growth to provide employment opportunities for residents. According to the Collier County Economic Development Council's 2009 Market Facts report, construction, retail trade and accommodations, and food service employ the largest number of Collier County residents. All three industries have an average wage well below the area median income ($44,592, $29,120, and $22,683 respectively) thereby making any disruption in income potentially devastating. This activity will benefit LH25 persons or households be providing affordable housing that is integrated and, whenever possible, located near employment centers and public transportation. This activity will produce housing that is intended to remain affordable. In compliance with NSP3 regulations, Collier County has adopted as a safe harbor the affordability standards of the HOME program at 24 CFR 92.252(a), (c), (e), and (f), and 92.254. It is expected that much of the housing created under this activity will be rental housing units. The Developer will seek, to the maximum extent possible, to hire or cause to be hired employees who reside in the vicinity of NSP3 projects or contract with small businesses that are owned and operated by persons residing in the vicinity of the project. For the purposes of NSP3, HUD defines "vicinity" as each neighborhood identified within this document as being the areas of greatest need. Packet Page -1660- Page 14 2/28/2012 Item 16.D.6. Activity Number 3 The following are examples of activities that may be used to accomplish this Land Bank (LMMH) initiative: Select • Outreach to local area residents and businesses; ❑ • Inclusion of Section 3 and other relevant language in all applicable F-] contracts; ® • Advertising of economic opportunities to local area residents and ❑ businesses ❑ Neighborhood ID 1108764: Golden Gate City CDBG Activity or Activities • Tier One — Census Tract 0104.10 Location Description • Tier Two — Census Tract 0104.09 Activity Description • Tier Three — Census Tract 0104.11 Neighborhood ID 3981140: East Naples Bayshore Gateway CRA Tier One — Census Tract 0107.01 Source of Funding Dollar Amount NSP3 $971,042 Budget Total Budget for Activity $971,042 Performance Measures Acquire and rehabilitate six (6) units of housing for LH25. Projected Start Date ` - March 1, 2011 Projected End Date February 28, 2014 Name Collier County Department of Housing, Human, and Veteran Services Location 3339 Tamiami Trail E., Suite 211, Responsible Organization Naples, Florida 34112 Administrator Contact Info 239- 252 -4663 kimberleygrant @colliergov.net Activity Number 3 Activity Name Land Bank (LMMH) Use Select all that apply: ❑ Eligible Use A: Financing Mechanisms F-] Eligible Use B: Acquisition and Rehabilitation ® Eligible Use C: Land Banking ❑ Eligible Use D: Demolition ❑ I Eligible Use E: Redevelopment CDBG Activity or Activities 24 CFR 570.201(a) Acquisition and (b) Disposition. HUD notes that any of the activities listed above may include required homebuyer counseling as an activity delivery cost. National Objective Low Moderate Middle Income Housing (LMMH) Activity Description Activity Number 3 will provide funding to Habitat for Humanity to purchase and operate a land bank. As detailed below, the high cost of land was a major NSP3 Action Plan Collier County, Florida Packet Page -1661- Page 15 2/28/2012 Item 16.D.6. NSP3 Action Plan Collier County, Florida Packet Page -1662- Page 16 contributor to the lack of affordable housing during the height of the local housing market. The activity will attempt to stabilize neighborhoods, arrest decline, and create a more sustainable, integrated, and affordable community. The local housing market conditions in the target areas generally consists a high supply of eligible properties, low demand for housing, or high levels of vacancy. Furthermore, the target areas are suffering from, or are at risk for blighted conditions. NSP3 provides a unique opportunity to improve a community be permitting land banking. At the peak of the housing market in Collier County (4th quarter 2005), only 16.3% of homes sold were affordable to a household earning the area median income (source: National Association of Home Builders /Wells Fargo Housing Opportunity Index). The cost of land was a major contributor to the lack of affordable housing during the housing market boom. Use funds under this activity, Collier County will prepare for the increase in vacant land costs by seeking to acquire properties at low cost. The Land Bank activity will not produce a range of interest rates, terms of assistance, or tenure of beneficiaries. Rather, those elements will present themselves upon redevelopment of the subject property within ten (10) years as required by HUD. This activity will not produce housing, rather it will fund the acquisition of properties for land banking by the Developer. Additionally, land banking will not create hiring opportunities for citizens or small businesses residing in the vicinity of the project. Neighborhood ID 1108764: Golden Gate City • Tier One — Census Tract 0104.10 Location Description • Tier Two — Census Tract 0104.09 • Tier Three — Census Tract 0104.11 Neighborhood ID 3981140: East Naples Bayshore Gateway CRA Tier One — Census Tract 0107.01 Source of Funding Dollar Amount NSP3 $388,415 Budget Total Budget for Activity $388,415 Performance Measures Acquire seven (7) land bank properties. Projected Start Date March 1, 2011 Projected End Date February 28, 2014 Collier County Department of Housing, Name Human, and Veteran Services Location 3339 Tamiami Trail E., Suite 211, Responsible Organization Naples, Florida 34112 Administrator Contact Info 239- 252 -4663 kimberleygrant @colliergov.net NSP3 Action Plan Collier County, Florida Packet Page -1662- Page 16 2/28/2012 Item 16.D.6. Activity Number 4 Activity Name _ Administration Use Select all that apply: ® Eligible Use A: Financing Mechanisms ® Eligible Use B: Acquisition and Rehabilitation ® Eligible Use C: Land Banking ® Eligible Use D: Demolition ® Eligible Use E: Redevelopment CDBG Activity or Activities 24 CFR 570.205 and 206, as amended to provide an alternative that an amount of up to ten (10) percent of an NSP grant provided to a jurisdiction and of up to ten (10) percent of program income earned may be used for general administration and planning activities. National Objective- N /A — Administration Activity Description ` This activity will fund the cost of administering the NSP3. Location Description N/A - Administration Budget - Source of Funding Dollar Amount NSP3 $388,415.00 Total Budget for Activity $388,415.00 Performance Measures N /A — Administration Projected Start Date = ` March 1, 2011 Projected End Date February 28, 2014 Responsible Organization Name Collier County Department of Housing, Human, and Veteran Services Location 3339 Tamiami Trail E., Suite 211, Naples, Florida 34112 Administrator Contact Info 239- 252 -4663 kimberleygrant @colliergov.net 8. Certifications Certifications for State and Entitlement Communities (1) Affirmatively furthering fair housing. The jurisdiction certifies that it will affirmatively further fair housing, which means that it will conduct an analysis to identify impediments to fair housing choice within the jurisdiction, take appropriate actions to overcome the effects of any impediments identified through that analysis, and maintain records reflecting the analysis and actions in this regard. NSP3 Action Plan Collier County, Florida Packet Page -1663- Page 17 2/28/2012 Item 16.D.6. (2) Anti - displacement and relocation plan. The applicant certifies that it has in effect and is following a residential anti - displacement and relocation assistance plan. (3) Anti - lobbying. The jurisdiction must submit a certification with regard to compliance with restrictions on lobbying required by 24 CFR part 87, together with disclosure forms, if required by that part. (4) Authority of jurisdiction. The jurisdiction certifies that the consolidated plan or abbreviated plan, as applicable, is authorized under state and local law (as applicable) and that the jurisdiction possesses the legal authority to carry out the programs for which it is seeking funding, in accordance with applicable HUD regulations and other program requirements. (5) Consistency with plan. The jurisdiction certifies that the housing activities to be undertaken with NSP funds are consistent with its consolidated plan or abbreviated plan, as applicable. (6) Acquisition and relocation. The jurisdiction certifies that it will comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (42 U.S.C. 4601), and implementing regulations at 49 CFR part 24, except as those provisions are modified by the notice for the NSP program published by HUD. (7) Section 3. The jurisdiction certifies that it will comply with section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u), and implementing regulations at 24 CFR part 135. (8) Citizen participation. The jurisdiction certifies that it is in full compliance and following a detailed citizen participation plan that satisfies the requirements of Sections 24 CFR 91.105 or 91.115, as modified by NSP requirements. (9) Following a plan. The jurisdiction certifies it is following a current consolidated plan (or Comprehensive Housing Affordability Strategy) that has been approved by HUD. [Only States and entitlement jurisdictions use this certification.] (10) Use of funds. The jurisdiction certifies that it will comply with the Dodd -Frank Wall Street Reform and Consumer Protection Act and Title XII of Division A of the American Recovery and Reinvestment Act of 2009 by spending 50 percent of its grant funds within 2 years, and spending 100 percent within 3 years, of receipt of the grant. (11) The jurisdiction certifies: a. that all of the NSP funds made available to it will be used with respect to individuals and families whose incomes do not exceed 120 percent of area median income; and The jurisdiction will not attempt to recover any capital costs of public improvements assisted with CDBG funds, including Section 108 loan guaranteed funds, by assessing any amount against properties owned and occupied by persons of low- and moderate - income, including any fee charged or assessment made as a condition of obtaining access to such public improvements. However, if NSP funds are used to pay the proportion of a fee or assessment attributable to the capital costs of public improvements (assisted in part with NSP funds) financed from other revenue sources, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG funds. In addition, with respect to properties owned and occupied by moderate - income (but not low- income) families, an NSP3 Action Plan Collier County, Florida Packet Page -1664- Page 18 2/28/2012 Item 16.D.6. assessment or charge may be made against the property with respect to the public improvements financed by a source other than NSP funds if the jurisdiction certifies that it lacks NSP or CDBG funds to,cover the assessment. (12) Excessive force. The jurisdiction certifies that it has adopted and is enforcing: a. A policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in nonviolent civil rights demonstrations; and b. A policy of enforcing applicable state and local laws against physically barring entrance to, or exit from, a facility or location that is the subject of such nonviolent civil rights demonstrations within its jurisdiction. (13) Compliance with anti - discrimination laws. The jurisdiction certifies that the NSP grant will be conducted and administered in conformity with Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d), the Fair Housing Act (42 U.S.C. 3601 - 3619), and implementing regulations. (14) Compliance with lead -based paint procedures. The jurisdiction certifies that its activities concerning lead -based paint will comply with the requirements of part 35, subparts A, B, J, K, and R of this title. (15) Compliance with laws. The jurisdiction certifies that it will comply with applicable laws. (16) Vicinity hiring. The jurisdiction certifies that it will, to the maximum extent feasible, provide for hiring of employees that reside in the vicinity of NSP3 funded projects or contract with small businesses that are owned and operated by persons residing in the vicinity of NSP3 projects. (17) Development of affordable rental housing. The jurisdiction certifies that it will be abide by the procedures described in its NSP3 Abbreviated Plan to create preferences for the development of affordable rental housing for properties assisted with NSP3 funds ATTEST: DWIGHT E. BROCK, CLERK BY: , DEPUTY CLERK APPROVED AS TO FORM AND LEGAL SUFFICIENCY BY: 1V �"- JENNIFER ITE ASSISTANT COUNTY ATTORNEY NSP3 Action Plan Collier County, Florida BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA BY: FRED W. COYLE, CHAIRMAN Packet Page -1665- Page 19 2/28/2012 Item 16.D.6. Appendix: NSP3 Action Plan Contents Checklist The checklist below is an optional tool for NSP3 grantees to help to ensure that all required elements of the NSP3 Substantial Amendment or the Abbreviated Plan are submitted to HUD. This checklist only includes the minimum required elements that must be included in the NSP3 Action Plan and grantees may want to add additional details. This document must be protected, as described above, in order to use the checkboxes in this checklist. 1. NSP3 Grantee Information Did you include the Program Administrator's name, address, phone, and email address? 2. Areas of Greatest Need Does the narrative description describe how funds will give priority ❑ emphasis to areas of greatest need? Does the narrative description specifically address how the funds will give priority emphasis to those areas: • With the highest percentage of home foreclosures? ❑ • With the highest percentage of homes financed by subprime ❑ mortgage related loan ?; and • Identified by the grantee as likely to face a significant rise in ❑ the rate of home foreclosures? Did you create the area of greatest needs map at ❑ http:/ /www.huduser.org /NSP /NSP3.htmI? Did you include the map as an attachment to your Action Plan? ❑ ONLYApplicable for States: Did you include the needs of all ❑ entitlement communities in the State? 3. Definitions and Descriptions Are the following definitions and topics included in your substantial amendment ?: • Blighted structure in context of state or local law, I ❑ Packet Page -1666- 2/28/2012 Item 16.D.6. • Affordable rents, ❑ • Ensuring long term affordability for all NSP funded housing ❑ projects, • Applicable housing rehabilitation standards for NSP funded ❑ projects 4. Low - Income Targeting 5. Acquisition & Relocation For all acquisitions that will result in displacement did you specify: • The planned activity, ❑ • The number of units that will result in displacement, ❑ • The manner in which the grantee will comply with URA for those residents? ❑ 6. Public Comment 7. NSP Information by Activity Packet Page -1667- 2/28/2012 Item 16.D.6. • Correlated eligible CDBG activity or activities? `• Associated national objective? ❑ • How the activity will address local market conditions? ❑ • Range of interest rates (if any)? ❑ • Duration or term of assistance? ❑ Tenure of beneficiaries (e.g. rental or homeowner)? ❑ • If the activity produces housing, how the design of the activity ❑ will ensure continued affordability? + How you will, to the maximum extent possible, provide for ❑ vicinity hiring? • Procedures used to create affordable rental housing ❑ preferences? • Areas-of greatest need addressed by the activity or activities? ❑ • Amount of funds budgeted for the activity? ❑ • Appropriate performance measures for the activity (e.g. units of housing to be acquired, rehabilitated, or demolished for the ❑ income levels represented in DRGR) ? • Expected start and end dates of the activity? ❑ • Name and location of the entity that will carry out the activity? '; ❑ 8. Certifications Did you sign and submit the certification form applicable to your I ❑ iurisdiction? 9. Additional Documentation Packet Page - 1668 2/28/2012 Item 16.D.6. 1. NSP3 Grantee Information NSP3 Program Administrator Contact Information Name (Last, First) - Krumbi~^ MaF-c- Grant, Kimberley Email Address F^•'(FWFnbine@c- 9"ieFga Y ~ ^ *kimberley� rant @collierggv.net Phone Number 2�9 -252 -4663 Mailing Address 3339 Tamiami Trail E., Suite 211, Naples, Florida 34112 -5361 2. Areas of Greatest Need Map Submission The map generated at the HUD NSP3 Mapping Tool for Preparing Action Plan website is included as an attachment. Data Sources used to Determine Areas of Greatest Need Describe the data sources used to determine the areas of greatest need. Response. Collier County consulted local, state, and national data sources in determining the areas of greatest need. The use of myriad data sources allowed both a macro and micro and analysis of the areas of critical concern, local and national trends, forecasting future demand, and leveraging of existing resources. The goal of Collier County when determining the areas of greatest need was to stabilize neighborhoods, arrest decline, and produce a more sustainable, inclusive, and integrated community. Local Data Source: Naples Area Board of Realtors Multiple Listing Service (MLS). Qualifiers: Excluded Marco Island, vacant land, commercial property, multi - family, and time- shares. Included mobile homes, manufactured homes, short sales, and foreclosures. All properties must have a minimum of 350 square feet. Data Used: Median sales price, median list price, number of listings, and number of sales from January 2010 to October 2010. The data provided a macro analysis of patterns and trends in the countywide residential real estate market. There continues to be a significant delta between the number of listings versus number of sales, and the median listing price versus the median sales price. For example, in October 2010 there were 434 sales compared to 7,966 properties listed; only 5.45% of properties listed for sale in October 2010 sold. Likewise, the median listing price in October 2010 was $324,000 compared to a median sales price in the same month of $165,000; the median sales price was approximately half of the median list price. It may be true that until these deltas display an extended decrease in severity, the local housing market will continue to struggle. However, the dichotomy between the rural housing market and the coastal housing market may distort the median data figures; thus, drawing conclusions at this level of analysis may be problematic. For example, the December 2010 sale of a home in the prestigious Port Royal community for $14.55 million dollars will likely distort the countywide median sales price data for that NSP3 Action Plan Collier County, Florida Packet Page -1669- Page 1 2/28/2012 Item 16.D.6. period. Source: Various; complied and reported in the U.S. Department of Housing and Urban Development's (HUD) NSP3 Downloadable Data Files. Qualifiers: Data reflects market conditions for the second quarter of 2010. For further details, consult the "Data Dictionary" prepared by HUD and available at www.huduser.org /portal /datasets /NSP.html. Data Used: Collier County was divided into 223 distinct areas by HUD when preparing data to assist in calculating the formula allocations amounts for NSP3. All data were used by HUD to calculate a NSP3 foreclosure need score ranging from one to twenty, with twenty being the worst. Locally, particular attention was paid to the following factors: foreclosure need score, percent low- moderate households, USPS vacancy rates, percentage of high -cost mortgages, and the estimate number of properties needed to make an impact. In order to be eligible for participation in NSP3, an area must have a foreclosure need score of at least seventeen on the scale of twenty. Of the 223 areas HUD divided Collier County into, 206 have a foreclosure need score of at least 17 (92.38 percent). However, many of the areas would require expenditures in excess of the available NSP3 funding. Collier County must seek to deeply target funding into those areas where HUD believes we can make an impact based upon current market conditions and projections for future decline or instability. Source: Collier County NSP1 experiences Qualifiers: Collier County was allocated $7,306,750 and successfully obligated 100 percent of the funds within 18 months. The program design generates program income upon sale to an income - qualified person or family. As such, activities are ongoing. Data Used: Acquisition locations, average acquisition cost, average rehabilitation cost, and return of program income. Collier County's NSP1 program has been successful in acquiring properties in focused geographical areas most adversely affected by the foreclosure crisis. When determining areas of greatest need for NSP3, consideration was given to properties approved using NSP1 funds. Furthermore, having already acquired over 70 properties with NSP1, Collier County has a considerable amount of data on costs. As such, we sought areas for NSP3 funding that we have adequate funding to make a real impact. State Data Source: Shimberg Center for Housing Studies, University of Florida. Qualifiers: Data projects affordable housing needs based upon the 2000 Census. While this data is dated, the Center was established in 1988 by the Florida legislature (Section 240.5111, Florida Statutes) as the State's source of research relating to the problems and solutions associated with the availability of affordable housing in Florida. As such, one must consider the data in any analysis of affordable housing needs. Data Used: Collier County used cost burdened household data, divided by home ownership and rental, to assess the types of housing units projected to meet an unmet need in the community. Cost burdened is defined as a household spending greater than 30 percent of household income on housing related expenses. Analyzing data from the Shimberg Center, Collier County is projected to have an average annual increase of 739.55 cost burdened household units between 2010 and 2030. The data shows the increase by NSP3 Action Plan Collier County, Florida Packet Page -1670- Page 2 2/28/2012 Item 16.D.6. income range and housing type (home ownership versus rental) and may prove a valuable tool in the long range planning and implementation of the NSP3 program. National Data Source: Neighborhood Stabilization Program Resource Exchange and other sources Qualifiers: Information was assembled to ensure Collier County's NSP3 areas of greatest need could be effectively served with the resources available using best practices, toolkits, and examples of successful implementations in NSP1 and NSP2. Finally, national media coverage on housing related issues was used to provide context within the broader economic crisis. Much of this data is not quantitative, but remains valuable when selecting target areas. Data Used: Two toolkits available on the Neighborhood Stabilization Program Resource Exchange were of particular benefit when determining areas of greatest need: Instructions for Completing the NSP3 Substantial Amendment or Abbreviated Action Plan and the NSP3 Program Design Guidebook. Figure 1 -2 in the NSP3 Program Design Guidebook was used to consider market types and the implications for program design. For example, in an area with low demand and high supply of eligible properties, Collier County may undertake demolition of blighted structures and land bank for future redevelopment. National media coverage was used to provide a context within the broader economic crisis when planning activities and selecting areas of greatest need. Topics considered included, but were not limited to: the growth in families "doubling up" due to loss of income or foreclosure; decreasing local government budgets resulting in, among other things, fewer funds for maintaining abandoned houses and funding social service initiatives; challenges in providing effective homeless prevention; uncertainty surrounding certain documents used by banks during foreclosure proceedings; presence of "Chinese Drywall" in homes and the adverse effects on owners; the state of housing and the uncertainties surround future prices; Florida Economic Outlook: July 2010 (Wells Fargo). Determination ee Applicable Describe how the areas of greatest need were established and whether a tiered approach is being utilized to determine the distribution of funding. Response: It is not proper, nor is it the intent, for the Collier County NSP3 to compete with the private market; the private market will take care of the private market. Rather, the Collier County NSP3 should deeply target those areas that are not attractive to private investors and homebuyers, and which are causing instability, deterioration, blight, and unstable conditions in the community. For purposes of NSP3, HUD divided Collier County into 223 unique target areas. Providing this number of small target areas will permit Collier County to deeply target areas adversely impacted by the foreclosure crisis. However, the County's success will depend on the availability of eligible properties. As such, Collier County will employ a tiered approach. Based upon data collected from NSP1, Collier County NSP3 allocation will fund activities on approximately t ty4etwthirty -one (21:2-4) units. A tiered approach will further define within the general target area, sub -areas (or tiers), to ensure that the County is able to meet the impact criteria provided by HUD. Where funds are insufficient to meet the impact criteria, the County will seek other NSP3 Action Plan Collier County, Florida Packet Page -1671- Page 3 2/28/2012 Item 16.D.6. tiers in which funds may be deeply targeted and produce the results expected by HUD, the Housing and Economic Recovery Act of 2008, and the Wall Street Reform and Consumer Protection Act of 2010 (Dodd -Frank Act). Finally, when assessing tiers to target with NSP3, the County will consider properties assisted with NSP1. For example, the County has made great efforts to stabilize an area loosely defined as Golden Gate City. Further investment in this area and the associated tiers will maximum the effects of both NSP1 and NSP3. Additionally, the past and future use of NSP1 in conjunction with NSP3 may assist the County in meeting the impact criteria. The following have been selected as the target areas for Collier County's NSP3: Target Area One — Golden Gate City (HUD Neighborhood ID 1108764 • Tier One — Census Tract 0104.10 • GeoID 120219230126300010410U1 • GeoID 120219230126300010410U2 • GeoID 1202192301263000104 IOU 3 • Tier Two — Census Tract 0104.09 • GeoID 120219230126300010409U1 • GeoID 120219230126300010409U2 • GeoID 120219230126300010409U3 • GeoID 120219230126300010409U4 o GeoID120219230126300010409U5 • Tier Three — Census Tract 0104.11 • GeoID 120219230126300010411U1 • GeoID 120219230126300010411U2 o GeoID 120219230126300010411U3 • GeoID 120219230126300010411R3 • GeoID 12021923012630001041181 Tareet Area wee -Two — East Naples Bayshore Gateway CRA (HUD Neighborhood ID 3981140 • Tier One — Census Tract 0107.01 • GeoID 120219230199999010701U4 • GeoID 120219230199999010701U1 • GeoID 120219230199.999010701U2 • GeoID 1202192301999990107010 • GeoID 120219230199999010701112 Please note that the above data is presented and identified as contained in HUD's NSP3 Mapping Tool. Copies of the reports are attached to this application. NSP3 Action Plan Collier County, Florida Packet Page -1672- Page 4 2/28/2012 Item 16.D.6. 3. Definitions and Descriptions Definitions Term Definition Blighted Structure In conformance with Section 163.340, Florida Statutes, a "blighted structure" means a structure that is deteriorated, or deteriorating, in which conditions, as indicated by government- maintained statistics or other studies, are leading to economic distress or endangering life or property, and in which two or more of the following factors are present: a) Predominance of defective or inadequate street layout, parking facilities, roadways, bridges, or public transportation facilities; b) Aggregate assessed value of real property in the area for ad valorem tax purposes have failed to show any appreciable increase over the 5 years prior to the finding of such condition; c) Faulty lot layout in relation to size, adequacy, accessibility, or usefulness; d) Unsanitary or unsafe conditions; e) Deterioration of site or other improvements; f) Inadequate and outdated building density patterns; g) Falling lease rates per square foot of office, commercial, or industrial space compared to the remainder of the county or municipality; h) Tax or special assessment delinquency exceeding the fair value of the land; i) Residential and commercial vacancy rates higher in the area than in the remainder of the county or municipality; j) Incidence of crime in the area higher than in the remainder of the county or municipality; k) Fire and emergency medical service calls to the area proportionately higher than in the remainder of the county or municipality; 1) A greater number of violations of the Florida Building Code in the area than the number of violations recorded in the remainder of the county or municipality; m) Diversity of ownership or defective or unusual conditions of title which prevent the free alienability of land within the deteriorated or hazardous area; or n) Governmentally owned property with adverse environmental conditions caused by a public or private entity. However, the term "blighted structure" or "blighted area" also means any structure or area in which at least one of the factors identified in paragraphs (a) through (n) are present and all taxing authorities subject to s. 163.387(2)(a) agree, either by interlocal agreement or agreements with the agency or by resolution, that the structure or area is blighted. Affordable Rents 24 CFR § 92.252 Rents shall not exceed the Fair Market Rents (FMR) as published annually by HUD for the Naples — Marco Island Metropolitan Statistical Area (MSA). NSP3 Action Plan Collier County, Florida Packet Page -1673- Page 5 2/28/2012 Item 16.D.6. Furthermore, the maximum rent are the lesser of: 1) The fair market rent for existing housing for comparable units in the area as established by HUD under 24 CFR 888.111; or 2) A rent that does not exceed 30 percent of the adjusted income of a family whose annual income equals 65 percent of the median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit. Furthermore, when the NS133 assisted unit is occupied by very low- income families the rent requirements are: 1) The rent does not exceed 30 percent of the annual income of a family whose income equals 50 percent of the median income for the area, as determined by HUD, with adjustments for smaller and larger families. However, if the rent determined under this paragraph is higher than the applicable rent under paragraph (1) or (2) of this section, then the maximum rent for units under this paragraph is that calculated under paragraph (1) or (2) of this section; and 2) The rent does not exceed 30 percent of the family's adjusted income. If the unit receives Federal or State project -based rental subsidy and the very low- income family pays as a contribution toward rent not more than 30 percent of the family's adjusted income, then the maximum rent (i.e., tenant contribution plus project -based rental subsidy) is the rent allowable under the Federal or State project -based rental subsidy program. Descriptions Term Definition Long -Term Affordability 24 CFR 92.252(a), (c), (e), and (f), and 92.254 Rental: Long -Term Affordability The NS133- assisted units must meet the affordability requirements for not less than the applicable period specified below, beginning after project completion. The affordability requirements for NSP3- assisted rental units apply without regard to the term of any loan or mortgage or the transfer of ownership, except that the affordability restrictions may terminate upon foreclosure or transfer in lieu of foreclosure. Collier County will enforce long -term affordability through the use of a recorded lien, covenant, or deed restriction against the assisted property. Rental housing activity Minimum period of affordability in years Rehabilitation or acquisition of existing housing per unit amount of NSP3 funds: 5 Under$15, 000 .................... ............................... $15,000 to $40, 000 ............ ............................... 10 Over $40,000 or rehabilitation involving refinancing.......................... ............................... 15 New construction or acquisition of newly 1 20 NSP3 Action Plan Collier County, Florida Page 6 Packet Page -1674- 2/28/2012 Item 16.D.6. constructed housine ........... ............................... Subsequent rents during the affordability period will be calculated and applied in conformance with 24 CFR 92.252(f). Homeownership: Long -Term Affordability The NSP3- assisted housing must meet the affordability requirements for not less than the applicable period specified in the following table, beginning after project completion. These restrictions are a minimum and Collier County may elect to impose longer affordability periods. The per unit amount of NSP3 funds and the affordability period that they trigger are described more fully below under "Homeownership: Recapture Provisions." Homeownership assistance NSP3 amount per -unit Minimum period of affordability in years Under $15, 000 .................... ............................... 5 $15,000 to $40, 000 ............ ............................... 10 Over $40, 000 ...................... ............................... 15 Homeownership: Recapture Provisions The recapture provisions will ensure that Collier County recoups all or a portion of the NSP3 assistance benefiting the homebuyer, if the housing does not continue to be the principal residence of the family for the duration of the period of affordability. The period of affordability is based upon the total amount of NSP3 funds subject to recapture described above. Collier County may choose to recapture the entire amount of NSP3 assistance or a reduced amount on a prorata basis for the time the homeowner has owned and occupied the housing measured against the required affordability period. The net proceeds may be divided proportionally as set forth in the following mathematical formulas: NSP3 investment X Net proceeds = NSP3 amount to County NSP3 investment + homeowner investment homeowner investment X Net proceeds = amount to homeowner NSP3 investment + homeowner investment Collier County may permit the homebuyer to recover the homebuyer's entire investment (downpayment and capital improvements made by the owner since purchase) before recapturing the NSP3 investment. Housing Rehabilitation Standards General Standards All NSP3- assisted housing will be required to meet or exceed local and state building codes. All units that require rehabilitation must meet or exceed the current Florida Building Code (FBC). The current code applied in Collier County is 2007 FBC. NSP3 Action Plan Collier County, Florida Collier County will incorporate energy- efficient, sustainable buildi Packet Page -1675- Page 7 2/28/2012 Item 16.D.6. practices, including the use of green building to provide long -term affordability and attractiveness within the community. Furthermore, Collier County encompasses a large coastal area that subjects the residents to the risk of hurricanes and severe flooding. As such, all NSP3- assisted housing will undergo hurricane hardening and damage mitigation, when feasible. Required HUD Standards In compliance with the requirements of HUD, the following standards will apply to gut rehabilitation and new construction projects. 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. a) Residential buildings up to three stories must be designed to meet the standard for Energy Star Qualified New Homes; b) Mid- or high -rise multifamily housing must be designed to meet American Society of Heating, Refrigerating, 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) In further compliance with the requirements of HUD, the following standards will apply to all NSP3- assisted housing units. a) All rehabilitated units must meet the following standards to the extent applicable to the work undertaken: i. Older obsolete products and appliances (such as windows, doors, lighting, hot water heaters, furnaces, boilers, air conditioning units, refrigerators, clothes washers and dishwashers) must be replaced with Energy Star -46 labeled products; ii. Water efficient toilets, showers, and faucets, such as those with the WaterSense label must be installed; iii. Housing must be improved to mitigate the impact of disasters (e.g. hurricane, flooding, and fire) HUD also encourages the adoption of energy efficient and environmentally - friendly green elements. Collier County will seek to incorporate the standards and policies of the Florida Green Building Coalition. A copy of the standards and policies is attached to this Action Plan. 4. Low - Income Targeting NSP3 Action Plan Collier County, Florida Packet Page -1676- Page 8 2/28/2012 Item 16.D.6. Identify the estimated amount of funds appropriated or otherwise made available under the NSP3 to be used to provide housing for individuals or families whose incomes do not exceed 50 percent of area median income. Response: Collier County will set -aside 25 percent of funds appropriated to the County to provide housing for individuals or families whose incomes do not exceed 50 percent of the area median income, adjusted for household size. The final dollar amount is 25 percent of the County's appropriation, rounded up to the nearest thousand. Please note that activities funded with program income are not subject to the 25 percent set -aside requirement, however they may be used to meet the regulatory requirement. Total low- income set -aside percentage (must be no less than 25 percent): 25.00% Total funds set aside for low- income individuals = $972,000.00 Meeting Low-Income Target Provide a summary that describes the manner in which the low- income targeting goals will be met. Response: Habitat for Humanity of Collier County, Inc. (hereinafter, "Habitat for Humanity" or "Developer "), has been successful in providing homeownership to households earning less than 50 percent of the area median income. Through a developer agreement, Collier County shall partner with Habitat for Humanity to meet the low- income targeting requirement through the provision of affordable homeownership. r-AgAr that Ple net exr-eed 30 perr:eRt 9f the annual ineeme Af;; family whese iReeme equals 50 PeFGeRt of the ....,,.JiaP i P eern e fA-r the arte, a 1j,,,ted- fee hA,iSeh..ld 562 e. Cellier Ceunty will seek to aequiFe, Pehabilitate, 9F Fedevelep multi family hE)usiRg uRits. ExpeFi_.1__U frA­Fn NISP.1- h@Ve ShE)WR that GE)llieF GGURty laeks mid sized NSP eligible FeRtal pmperties; mere typieal is Fisma. agencies that have beeR suGeessful in PF@VidiRg hemeewpeFship te househelds eaFRing less than 50 , - NSP3 Action Plan Collier County, Florida Packet Page -1677- Page 9 2/28/2012 Item 16.D.6. 5. Acquisition and Relocation Demolition or Conversion of LMI Units Does the grantee intend to demolish or convert any low- and moderate - income dwelling units (Le., <_ 80% of area median income)? Yes If ves. fill in the table below. Question Number of Units The number of low- and moderate - income dwelling units — i.e., <_ 80% of area median income — reasonably expected to be demolished or converted as a direct result of NSP- assisted activities. 3 units The number of NSP affordable housing units made available to low -, moderate -, and middle- income households —Le., 5 120% of area median income — reasonably expected to be produced by activity and income level as provided for in DRGR, by each NSP activity providing such housing (including a proposed time schedule for commencement and completion). All activities have an estimated commencement date of March 1, 2011 and completion date of February 28, 2014. Activity 1 LMMH –3-14 units Activity 2 LH25 – 4-6 units Ac-tivity-5 LISA I H wit Aetiyity i M25 NA4 The number of dwelling units reasonably expected to be made available for households whose income does not exceed 50 percent of area median income. 6 units 6. Public Comment Briefly describe how the grantee followed its citizen participation plan regarding this proposed substantial amendment or abbreviated plan. Response: NSP3 Action Plan Collier County, Florida Page 10 Packet Page -1678- 2/28/2012 Item 16.D.6. The Collier County Citizen Participation Plan was adopted January 9, 2001. The following steps were taken in preparation of this NSP3 substantial amendment: 1. Technical Assistance — In addition to providing public access to the draft and development document used in the preparation of this substantial amendment, Collier County was available to provide technical assistance to citizens, citizen groups, nonprofit organizations and agencies that requested assistance in understanding the NSP3. 2. Public Hearings /Meetings —The development of the Collier County NSP3 substantial amendment was contemplated in regular, publicly advertised meeting(s) of the Affordable Housing Advisory Committee, the Board of County Commissioners, and advertised in a newspaper of general circulation. 3. Fifteen -Day Public Comment Period —The County published notice of the availability of the proposed NSP3 substantial amendment in a newspaper of general circulation and posted it on the County's website. The publication described, among other items, the total County appropriation, target areas, and proposed activities. 4. County Commission — Citizen participation requirements shall not be construed to restrict the responsibility or authority of the County for the development and execution of the NSP3 program activities. The County Commission remains the sole approving authority for the program and any amendments. Summary of Public Comments Received. No public comments were received. 7. NSP Information by Activity Activity Number 1 Activity Name Acquisition and Rehabilitation (LMMH) Select all that apply: ❑ I Eligible Use A: Financing Mechanisms ® Eligible Use B: Acquisition and Rehabilitation Uses ❑ Eligible Use C: Land Banking ❑ Eligible Use D: Demolition ❑ Eligible Use E: Redevelopment 24 CFR 570.201(a) Acquisition, (b) Disposition, (i) Relocation, and (n) Direct CDBG Activity or homeownership assistance (as modified below); 24 CFR 570.202 eligible Activities rehabilitation and preservation activities for homes and other residential properties. HUD notes that any of the activities listed above may include required homebuyer counseling as an activity delivery cost. National Objective Low Moderate Middle Income Housing (LMMH) Activity Number 1 will provide funding to a Developer to acquire e0d rehabilitate properties that have been abandoned or foreclosed upon. Once Activity Description rehabilitation is complete, utilizing funding provided by the Developer, the home will be sold to persons or households earning not greater than 120 percent area median income, adjusted for household size. NSP3 Action Plan Collier County, Florida Packet Page -1679- Page 11 NSP3 Action Plan Collier County, Florida 2/28/2012 Item 16.D.6. The activity will attempt to stabilize neighborhoods, arrest decline, and create a more sustainable, integrated, and affordable community. The local housing market conditions in the target areas generally consists of elevated vacancy rates, greater percentage of homes financed with a high cost loan, a large number of mortgages seriously delinquent (90+ or more delinquent or in foreclosure), and a significant percentage decline in home values since the peak value. For example, since the peak value, home values in the target areas have fallen 48.4 percent. r^ 116°r Gpeup y he Developer will seek to purchase homes and residential properties that have been abandoned or foreclosed upon, in order to sell; or redevelop such homes and properties. When selecting target areas for this activity, Collier County paid close attention to the impact score assigned by HUD. The impact score is the estimated number of properties needed to make an impact in the identified target area. Consideration of the impact score is especially important because, as HUD states, "nationwide there have been over 1.9 million foreclosure completions in the past two years. NSP 1, 2, and 3 combined are estimated to only be able to address 100,000 to 120,000 foreclosures. To stabilize a neighborhood requires focused investment." Therefore, target areas were selected in which Collier County would be able to make the impact recommended by HUD. When providing assistance to persons, families, non - profit agencies, or other organizations, the following general terms will apply: • Range of interest rates: 0 percent to 5 percent • Term of assistance: 5 years to 30 years • Tenure of beneficiaries: homeowners and�^F FeRte ° The activity is expected to benefit income - qualified persons or households by producing safe, decent, and affordable housing. Additionally, the CewRty Developer v✓+la may seek to incorporate energy efficient and environmentally - friendly green elements in each project. One of the major obstacles to affordable homeownership is saving for a down payment. Oftentimes the low- and very-low income residents of Collier r struggling to a a month) rent payment, as well as other Count are s Y gg g pay Y pY , household expenses. This activity will benefit income - qualified persons or households by offering a newly rehabilitated property with a PFiRGipal buy through Habitat for Humanity to reduce the heavy burden of saving a sizable down payment. Another factor affecting residents within the target areas is reduced employment opportunities. Collier County has long relied on industries fueled by population growth to provide employment opportunities for residents. According to the Collier County Economic Development Council's 2009 Packet Page -1680- Page 12 2/28/2012 Item 16.D.6. NSP3 Action Plan Collier County, Florida Packet Page -1681- Page 13 Market Facts report, construction, retail trade and accommodations, and food service employ the largest number of Collier County residents. All three industries have an average wage well below the area median income ($44,592, $29,120, and $22,683 respectively) thereby making any disruption in income potentially devastating. This activity will benefit income - qualified persons or households be providing affordable housing that is integrated and, whenever possible, located near employment centers and public transportation. This activity will produce housing that is intended to remain affordable. In compliance with NSP3 regulations, Collier County has adopted as a safe harbor the affordability standards of the HOME program at 24 CFR 92.252(a), (c), (e), and (f), and 92.254. r niter r- -„n +,-The Developer will seek, to the maximum extent possible, to hire or cause to be hired employees who reside in the vicinity of NSP3 projects or contract with small businesses that are owned and operated by persons residing in the vicinity of the project. For the purposes of NSP3, HUD defines "vicinity" as each neighborhood identified within this document as being the areas of greatest need. The following are examples of activities that may be used to accomplish this initiative: • Outreach to local area residents and businesses; • Inclusion of Section 3 and other relevant language in all applicable contracts; • Advertising of economic opportunities to local area residents and businesses rental heurbin., is detailed in Activity 2 and Aeti„ity G Neighborhood ID 1108764: Golden Gate City • Tier One — Census Tract 0104.10 • Tier Two — Census Tract 0104.09 Location Description • Tier Three — Census Tract 0104.11 Weighhr.rhOe d in 182:7545--. N-.ples PaFk • TieF ORE? _ Gens s Tr„rt 0104.09 Neighborhood ID 3981140: East Naples Bayshore Gateway CRA • Tier One — Census Tract 0107.01 Source of Funding Dollar Amount - NSP3 $2,100,099.00 2 136 293 Budget $ Total Budget for Activity $99,999,99 2 136 293 Performance Measures: Acquire and rehabilitate twelve fourteen (14) units of housing for LMMH. NSP3 Action Plan Collier County, Florida Packet Page -1681- Page 13 2/28/2012 Item 16.D.6. Projected Start Date March 1, 2011 Projected End Date February 28, 2014 Select Name Collier County Department of Housing, Human, and Veteran Services Location 3339 Tamiami Trail E., Suite 211, ® Responsible Naples, Florida 34112 Administrator Contact Info 239- 252 -4663 Organization Eligible Use D: Demolition . kimberleyer ❑ Eligible Use E: Redevelopment ant @colliergov.net Activity Number 2 Activity Name Acquisition and Rehabilitation (LH25) Select all that apply: ❑ Eligible Use A: Financing Mechanisms ® Eligible Use B: Acquisition and Rehabilitation Use ❑ Eligible Use C: Land Banking ❑ Eligible Use D: Demolition ❑ Eligible Use E: Redevelopment 24 CFR 570.201(a) Acquisition, (b) Disposition, (i) Relocation, and (n) Direct homeownership assistance (as modified below); 24 CFR 570.202 eligible CDBG Activity or rehabilitation and preservation activities for homes and other residential Activities' properties. HUD notes that any of the activities listed above may include required homebuyer counseling as an activity delivery cost. National Objective Low- Income Housing to Meet 25% Set -Aside (LH25) Activity Number 2 will provide funding to a Developer to acquire a-R4 rehabilitate properties that have been abandoned or foreclosed upon. Once rehabilitation is complete, utilizing funding provided by the Developer, the home will be rented to persons or households earning not greater than 50 percent area median income, adjusted for household size. The County will favor the end -use of rental housing to provide affordable housing to this income population. The activity will attempt to stabilize neighborhoods, arrest decline, and create a more sustainable, integrated, and affordable community. The local housing market conditions in the target areas generally consists of elevated vacancy Activity Description rates, greater percentage of homes financed with a high cost loan, a large number of mortgages seriously delinquent (90+ or more delinquent or in foreclosure), and a significant percentage decline in home values since the peak value. For example, since the peak value, home values in the target areas have fallen 48.4 percent. Gellie. GewRt..The Developer will seek to purchase homes and residential properties that have been abandoned or foreclosed upon, in order to sell; or redevelop such homes and properties. When selecting target areas for this activity, Collier County paid close attention to the impact score assigned by HUD. The impact score is the estimated number of properties NSP3 Action Plan N Collier County, Florida Page 14 Packet Page -1682- NSP3 Action Plan Collier County, Florida 2/28/2012 Item 16.D.6. needed to make an impact in the identified target area. Consideration of the impact score is especially important because, as HUD states, "nationwide there have been over 1.9 million foreclosure completions in the past two years. NSP 1, 2, and 3 combined are estimated to only be able to address 100,000 to 120,000 foreclosures. To stabilize a neighborhood requires focused investment." Therefore, target areas were selected in which Collier County would be able to make the impact recommended by HUD. When providing assistance to persons, families, non - profit agencies, or other organizations, the following general terms will apply: • Range of interest rates: 0 percent to 5 percent • Term of assistance: 5 years to 30 years • Tenure of beneficiaries: homeowners and,'eF FeRteFs The activity is expected to benefit persons or households with incomes at or below 50 percent of the area median income ( '11-125 ") by producing safe, decent, and affordable housing. Additionally, the C -arty- Developer*, 4may seek to incorporate energy efficient and environmentally - friendly green elements in each project. Another factor affecting residents within the target areas is reduced employment opportunities. Collier County has long relied on industries fueled by population growth to provide employment opportunities for residents. According to the Collier County Economic Development Council's 2009 Market Facts report, construction, retail trade and accommodations, and food service employ the largest number of Collier County residents. All three industries have an average wage well below the area median income ($44,592, $29,120, and $22,683 respectively) thereby making any disruption in income potentially devastating. This activity will benefit LH25 persons or households be providing affordable housing that is integrated and, whenever possible, located near employment centers and public transportation. This activity will produce housing that is intended to remain affordable. In compliance with NSP3 regulations, Collier County has adopted as a safe harbor the affordability standards of the HOME program at 24 CFR 92.252(a), (c), (e), and (f), and 92.254. It is expected that much of the housing created under this activity will be rental housing units. GellieF GeuRtyihe Developer will seek, to the maximum extent possible, to hire or cause to be hired employees who reside in the vicinity of NSP3 projects or contract with small businesses that are owned and operated by persons residing in the vicinity of the project. For the purposes of NSP3, HUD defines "vicinity" as each neighborhood identified within this document as - being the areas of greatest need. Packet Page -1683- Page 15 2/28/2012 Item 16.D.6. Activity Number 3 Activity Name Land Bank (LMMH) Use Select all that apply: NSP3 Action Plan Collier County, Florida Packet Page -1684- Page 16 The following are examples of activities that may be used to accomplish this initiative: • Outreach to local area residents and businesses; • Inclusion of Section 3 and other relevant language in all applicable contracts; • Advertising of economic opportunities to local area residents and businesses /^euRt„ reek t..:.,..p1e.,.,eRt to rFeate fee G- '.lies will pF.,rA_d_i,rer IaFefeFenees the I H25 n plat'!, Rder_thlc iw4m*t4ot-wheR sep.,iRg Location Description Neighborhood ID 1108764: Golden Gate City • Tier One — Census Tract 0104.10 • Tier Two — Census Tract 0104.09 • Tier Three — Census Tract 0104.11 Nei hh„rhead In 192:7545. Naples o<,rh -rer QRe _ reRs s TFaet n! nn n4 Neighborhood ID 3981140: East Naples Bayshore Gateway CRA Tier One — Census Tract 0107.01 Budget Source of Funding Dollar Amount' NSP3 $77-�,000.09 971042 Total Budget for Activity 888-89 971 042 Performance Measures Acquire and rehabilitate fet1(4� six 6 ) units of housing for LH25. Projected Start Date March 1, 2011 Projected End Date February 28, 2014 Responsible Organization Name Collier County Department of Housing, Human, and Veteran Services Location 3339 Tamiami Trail E., Suite 211, Naples, Florida 34112 Administrator Contact Info 239- 252 -4663 FAaFG l(rU., biRe@c- E)IliE!Fgev Ret fFaRkr-,msey@e9IlieFge., Ret kimberleyPrant @colliergov.net Activity Number 3 Activity Name Land Bank (LMMH) Use Select all that apply: NSP3 Action Plan Collier County, Florida Packet Page -1684- Page 16 2/28/2012 Item 16.D.6. NSP3 Action Plan Collier County, Florida Packet Page -1685- Page 17 ❑ Eligible Use A: Financing Mechanisms ❑ Eligible Use B: Acquisition and Rehabilitation ® Eligible Use C: Land Banking ❑ Eligible Use D: Demolition ❑ Eligible Use E: Redevelopment CDBG Activity or Activities. 24 CFR 570.201(a) Acquisition and (b) Disposition. HUD notes that any of the activities listed above may include required homebuyer counseling as an activity delivery cost. National Objective Low Moderate Middle Income Housing (LMMH) Activity Number 3 will provide funding to Habitat for Humanity to purchase and operate a land bank. As detailed below, the high cost of land was a major contributor to the lack of affordable housing during the height of the local housing market. oede el„ Rt FR ay he fundle,- , „dfeY ncaivit„ 5 ar GtiV, +„ ti this 'r,— to fpsare available, the Ge Aty_may of appleGa4e^. ,�;,;aa -NSP3 haRk P eF o The activity will attempt to stabilize neighborhoods, arrest decline, and create a more sustainable, integrated, and affordable community. The local housing market conditions in the target areas generally consists a high supply of eligible properties, low demand for housing, or high levels of vacancy. Furthermore, the target areas are suffering from, or are at risk for blighted conditions. NSP3 provides a unique opportunity to improve a community be permitting land banking. Activity Description At the peak of the housing market in Collier County (4th quarter 2005), only 16.3% of homes sold were affordable to a household earning the area median income (source: National Association of Home Builders /Wells Fargo Housing Opportunity Index). The cost of land was a major contributor to the lack of affordable housing during the housing market boom. Use funds under this activity, Collier County will prepare for the increase in vacant land costs by seeking to acquire properties at low cost. The Land Bank activity will not produce a range of interest rates, terms of assistance, or tenure of beneficiaries. Rather, those elements will present themselves upon redevelopment of the subject property within ten (10) years as required by HUD. This activity will not produce housing, rather it will fund the acquisition of properties for land banking by the Developer. Additionally, land banking will not create hiring opportunities for citizens or small businesses residing in the vicinity of the project. Neighborhood ID 1108764: Golden Gate City • Tier One — Census Tract 0104.10 Location Description • Tier Two — Census Tract 0104.09 • Tier Three — Census Tract 0104.11 nleighbei:149 A_dd I'D 11-927-545. Naples Pa F!( NSP3 Action Plan Collier County, Florida Packet Page -1685- Page 17 2/28/2012 Item 16.D.6. NSP3 Action Plan Collier County, Florida Page 18 Packet Page -1686- TiCF ORe _ GeRG S rr ;4r# 0104 09 Neighborhood ID 3981140: East Naples Bayshore Gateway CRA Tier One — Census Tract 0107.01 Budget Source of Funding ` Dollar Amount NSP3 $1,980- 89388,415 $ $ Total Budget for Activity $150,009 -. 9388,415 Performance Measures Acquire thFee -(3 }seven 7 land bank properties. Projected Start Date March 1, 2011 Projected End Date February 28, 2014 Responsible Organization Name -_ Collier County Department of Housing, Human, and Veteran Services Location 3339 Tamiami Trail E., Suite 211, Naples, Florida 34112 Administrator Contact Info 239- 252 -4663 fFaRl(Famsey@ eel 1ieF ey ^°*kimberleygr ant @colliergov.net NSP3 Action Plan Collier County, Florida Page 18 Packet Page -1686- 2/28/2012 Item 16.D.6. QwtF^.,. -h to 1 ,ea1. sidonrs and businesseF IRG .,f -Sort'.,.. 2 anal A.th^ eleyaRt language f all applicable SSQ JIT'I�JQ�J NSP3 Action Plan Collier County, Florida Packet Page -1687- Page 19 r� •. ■ ■ ■ • • Ile® ■ 1 NSP3 Action Plan Collier County, Florida Packet Page -1687- Page 19 2/28/2012 Item 16.D.6. NSP3 Action Plan Collier County, Florida Packet Page -1688- Page 20 i _ MO-, n NSP3 Action Plan Collier County, Florida Packet Page -1688- Page 20 i _ NSP3 Action Plan Collier County, Florida Packet Page -1688- Page 20 2/28/2012 Item 16.D.6. NSP3 Action Plan Collier County, Florida Packet Page -1689- Page 21 Pp � -mancp h4eaQ- p-r PFejeGted Start Date • • r - r n • - 2/28/2012 Item 16.D.6. NSP3 Action Plan Collier County, Florida Page 22 Packet Page -1690- Eligible I Ise G De.de..elepme.,+ 74 /'ED 5:79.2191(a) AcagwG-i+ien (b) Dirnesitien (e) Public f;4eiii +ier Ad C--D-RG .4--ti Fity GF Arm' fe..the .e.de..elene.d (i) DeleGa+ien , -,n.d (n) direr,+ + :"., ar- tiy :+ :as fAr ffene.-+ies , (-,s R;E).d:f :ed helew) 24 CPR 5:70 assistaRee Eligible reh- ,4. :i :tatiep -.,rl d eli�herd —202 eF nrener+ier pFese.-„a yaean+ 74 ('ED 5:79.204 !^e +y base.d rde.,eien.,-,en+ e o-,+iens cost nmuni hemebwyer erl����+ :en .- e''nrel:ng as -,n @Gtiyity rdeli..er., a NSP3 Action Plan Collier County, Florida Page 22 Packet Page -1690- 2/28/2012 Item 16.D.6. NSP3 Action Plan Collier County, Florida Packet Page -1691- Page 23 I WWI PM wrMAIMITIMMMICE ., _. .. _. - - - NSP3 Action Plan Collier County, Florida Packet Page -1691- Page 23 2/28/2012 Item 16.D.6. NSP3 Action Plan Collier County, Florida Packet Page -1692- Page 24 2/28/2012 Item 16.D.6. Activity Number-74 Activity Name Administration Use Select all that apply: ® Eligible Use A: Financing Mechanisms ® Eligible Use B: Acquisition and Rehabilitation ® Eligible Use C: Land Banking ® Eligible Use D: Demolition ® I Eligible Use E: Redevelopment CDBG Activity or Activities 24 CFR 570.205 and 206, as amended to provide an alternative that an amount of up to ten (10) percent of an NSP grant provided to a jurisdiction and of up to ten (10) percent of program income earned may be used for general administration and planning activities. National Objective N /A — Administration Activity Description This activity will fund the cost of administering the NSP3. Location Description N/A - Administration - Budget Source of Funding' Dollar Amount NSP3 $388,415.00 Total Budget for Activity $388,415.00 Performance Measures N /A — Administration Projected Start Date March 1, 2011 Projected End Date February 28, 2014 Responsible Organization Name Collier County Department of Housing, Human, and Veteran Services Location 3339 Tamiami Trail E., Suite 211, Naples, Florida 34112 Administrator Contact Info 239- 252 -4663 fFaR'(F @PASey@GE)IlieFgGV netkimberleyhr ant @colliergoy.net 8. Certifications Certifications for State and Entitlement Communities (1) Affirmatively furthering fair housing. The jurisdiction certifies that it will affirmatively further fair housing, which means that it will conduct an analysis to identify impediments to fair housing choice NSP3 Action Plan Collier County, Florida Packet Page -1693- Page 25 2/28/2012 Item 16.D.6. within the jurisdiction, take appropriate actions to overcome the effects of any impediments identified through that analysis, and maintain records reflecting the analysis and actions in this regard. (2) Anti - displacement and relocation plan. The applicant certifies that it has in effect and is following a residential anti - displacement and relocation assistance plan. (3) Anti - lobbying. The jurisdiction must submit a certification with regard to compliance with restrictions on lobbying required by 24 CFR part 87, together with disclosure forms, if required by that part. (4) Authority of jurisdiction. The jurisdiction certifies that the consolidated plan or abbreviated plan, as applicable, is authorized under state and local law (as applicable) and that the jurisdiction possesses the legal authority to carry out the programs for which it is seeking funding, in accordance with applicable HUD regulations and other program requirements. (5) Consistency with plan. The jurisdiction certifies that the housing activities to be undertaken with NSP funds are consistent with its consolidated plan or abbreviated plan, as applicable. (6) Acquisition and relocation. The jurisdiction certifies that it will comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (42 U.S.C. 4601), and implementing regulations at 49 CFR part 24, except as those provisions are modified by the notice for the NSP program published by HUD. (7) Section 3. The jurisdiction certifies that it will comply with section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C: 1701u), and implementing regulations at 24 CFR part 135. (8) Citizen participation. The jurisdiction certifies that it is in full compliance and following a detailed citizen participation plan that satisfies the requirements of Sections 24 CFR 91.105 or 91.115, as modified by NSP requirements. (9) Following a plan. The jurisdiction certifies it is following a current consolidated plan (or Comprehensive Housing Affordability Strategy) that has been approved by HUD. [Only States and entitlement jurisdictions use this certification.] (10) Use of funds. The jurisdiction certifies that it will comply with the Dodd -Frank Wall Street Reform and Consumer Protection Act and Title XII of Division A of the American Recovery and Reinvestment Act of 2009 by spending 50 percent of its grant funds within 2 years, and spending 100 percent within 3 years, of receipt of the grant. (11) The jurisdiction certifies: a. that all of the NSP funds made available to it will be used with respect to individuals and families whose incomes do not exceed 120 percent of area median income; and b. The jurisdiction will not attempt to recover any capital costs of public improvements assisted with CDBG funds, including Section 108 loan guaranteed funds, by assessing any amount against properties owned and occupied by persons of low- and moderate - income, including any fee charged or assessment made as a condition of obtaining access to such public improvements. However, if NSP funds are used to pay the proportion of a fee or assessment attributable to the capital costs of public improvements (assisted in part with NSP funds) financed from other NSP3 Action Plan Collier County, Florida Packet Page -1694- Page 26 2/28/2012 Item 16.D.6. revenue sources, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG funds. In addition, with respect to properties owned and occupied by moderate - income (but not low- income) families, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than NSP funds if the jurisdiction certifies that it lacks NSP or CDBG funds to cover the assessment. (12) Excessive force. The jurisdiction certifies that it has adopted and is enforcing: a. A policy prohibiting the use of excessive force bylaw enforcement agencies within its jurisdiction against any individuals engaged in nonviolent civil rights demonstrations; and b. A policy of enforcing applicable state and local laws against physically barring entrance to, or exit from, a facility or location that is the subject of such nonviolent civil rights demonstrations within its jurisdiction. (13) Compliance with anti- discrimination laws. The jurisdiction certifies that the NSP grant will be conducted and administered in conformity with Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d), the Fair Housing Act (42 U.S.C. 3601 - 3619), and implementing regulations. (14) Compliance with lead -based paint procedures. The jurisdiction certifies that its activities concerning lead -based paint will comply with the requirements of part 35, subparts A, B, J, K, and R of this title. (15) Compliance with laws. The jurisdiction certifies that it will comply with applicable laws. (16) Vicinity hiring. The jurisdiction certifies that it will, to the maximum extent feasible, provide for hiring of employees that reside in the vicinity of NSP3 funded projects or contract with small businesses that are owned and operated by persons residing in the vicinity of NSP3 projects. (17) Development of affordable rental housing. The jurisdiction certifies that it will be abide by the procedures described in its NSP3 Abbreviated Plan to create preferences for the development of affordable rental housing for properties assisted with NSP3 funds ATTEST: BOARD OF COUNTY COMMISSIONERS DWIGHT E. BROCK, CLERK COLLIER COUNTY, FLORIDA M APPROVED AS TO FORM AND LEGAL SUFFICIENCY BY: DEPUTY CLERK FRED W. COYLE CHAIRMAN BY: JENNIFER WHITE ASSISTANT COUNTY ATTORNEY NSP3 Action Plan Collier County, Florida Packet Page -1695- Page 27 2/28/2012 Item 16.D.6. �y NSP3 Action Plan Collier County, Florida Page 28 Packet Page -1696- 2/28/2012 Item 16.D.6. Appendix: NSP3 Action Plan Contents Checklist The checklist below is an optional tool for NSP3 grantees to help to ensure that all required elements of the NSP3 Substantial Amendment or the Abbreviated Plan are submitted to HUD. This checklist only includes the minimum required elements that must be included in the NSP3 Action Plan and grantees may want to add additional details. This document must be protected, as described above, in order to use the checkboxes in this checklist. 1. NSP3 Grantee Information Did you include the Program Administrator's name, address, phone, and email address? n 2. Areas of Greatest Need Does the narrative description describe how funds will give priority ❑ emphasis to areas of greatest need? Does the narrative description specifically address how the funds will give priority emphasis to those areas: • With the highest percentage of home foreclosures? ❑ ❑ • With the highest percentage of homes financed by subprime mortgage related loan ?; and ❑ • Identified by the grantee as likely to face a significant rise in the rate of home foreclosures? Did you create the area of greatest needs map at ❑ http:/ /www.huduser.org /NSP /NSP3.htmi? Did you include the map as an attachment to your Action Plan? ❑ ONLYApplicable for States: Did you include the needs of all ❑ entitlement communities in the State? 3. Definitions and Descriptions Are the following definitions and topics included in your substantial amendment ?: • Blighted structure in context of state or local law, ❑ Packet Page -1697- 2/28/2012 Item 16.D.6. • Affordable rents, ❑ • Ensuring long term affordability for all NSP funded housing 1:1 projects, • Applicable housing rehabilitation standards for NSP funded ❑ projects 4. Low - Income Targeting 5. Acquisition & Relocation For all acquisitions that will result in displacement did you specify: • The planned activity, ❑ • The number of units that will result in displacement, ❑ • The manner in which the grantee will comply with URA for those residents? ❑ 6. Public Comment 7. NSP Information by Activity Packet Page -1698- 2/28/2012 Item 16.D.6. • Correlated eligible CDBG activity or activities? • Associated national objective? El • How the activity will address local market conditions? ❑ • Range of interest rates!(if any)? ;:❑ • Duration or term of assistance? ❑ • Tenure of beneficiaries (e.g. rental or homeowner)? ❑ • 1 oduces housing, how the design of the activity If the activity pr ❑ will ensure continued affordability? • How you will, to the maximum extent possible, provide for vicinity hiring? • Procedures used to create affordable rental housing ❑ preferences? • Areas of greatest need addressed by the activity or activities? ❑ • Amount of funds budgeted for the activity? ❑ • Appropriate performance measures for the activity (e.g. units of housing to be acquired, rehabilitated, or demolished for the income levels represented in -DRGR) ? • Expected start and end dates of the activity? ❑ • , Name and location of the entity that will carry out the activity? - ❑ 8. Certifications Did you sign and submit the certification form applicable to your ❑ jurisdiction? 9. Additional Documentation Packet Page -1699-