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Agenda 02/28/2012 Item #16D7Proposed Agenda Changes Board of County Commissioners Meeting February 28, 2012 MOVE ITEM 16D7 TO ITEM 11I: RECOMMENDATION TO APPROVE A SHORT SALE POLICY FOR THE STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM (COMMISSIONER HILLER REQUEST) 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 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 known as the Red Light Running Camera Enforcement System (Staff 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 $586,159.60 to DN Higgins for construction tasks in RFQ #08- 5011 -58, Irrigation Quality Water Sites. (Commissioner Hiller's request) Move Item 16D6 to Item 11H: 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) Note: Item 16A16 should read: Recommendation to adopt a resolution of necessity superseding m n in 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.7. EXECUTIVE SUMMARY Recommendation to approve a Short Sale Policy for the State Housing Initiatives Partnership (SHIP) program. OBJECTIVE: For individuals seeking a short sale, provide an option to also accept a reduced SHIP repayment amount. CONSIDERATIONS: On September 27, 2011, the Board directed staff to work with the Foreclosure Task Force and the Affordable Housing Advisory Committee to create a joint recommendation on an appropriate Short Sale Policy. On December 12, 2011 a member from the Collier County Foreclosure Taskforce presented a workgroup summary on short sale options to the Affordable Housing Advisory Committee (AHAC) in consideration of a new policy. The final recommendation offered to and accepted by the committee was a settlement amount of 6% or 6,000, whichever is less, on SHIP loans requesting a short sale. This policy is only applicable to debt settlement to facilitate short sales for clients assisted through the down payment assistance program ( "Purchase Assistance "). To be eligible for a short sale, the policy applies the following minimum criteria: 1. The recipient, as seller of the property, shall not receive any funds from the Short Sale transaction. 2. To facilitate a Short Sale, Collier County shall forgive a percent of the assistance provided based upon the following table. SHORT SALE SETTLEMENT AMOUNT 6% or $6,000 whichever is less (but never for less than 5500 *) *Staff calculates the cost to process each application is approximately $500; consequently recommends this addition to the recommendation made above For example, if a recipient received SHIP assistance in the amount of $20,000 the settlement amount would be $1,200 (6 %). The Foreclosure Task Force recommendation is consistent with the Home Affordable Foreclosure Alternative (HATA) Program. Most major lenders are participants in HAFA and, as such, would be agreeable to these terms when permitting a short sale. Since SHIP program inception over 15 years ago, an amount in excess of $20 million has been received; the majority of which has been applied to down payment assistance. Individual loans have ranged from $2,500 to $45,000, and thousands of individuals have been assisted. Packet Page -1700- 2/28/2012 Item 16.D.7. The program contains no policy to provide forgiveness in an effort to facilitate a Short Sale, but the County, as lender, has the ability and right to establish policies for settlement of the debt. The state does not require that loans given under this program be repaid. As a point of reference, when a property is foreclosed upon with a SHIP loan, historically we have recovered $0. Each request for SHIP loan settlements will be brought to the Board for future consideration under the policy. Staff further requests authority to process SHIP short sales according to this policy without obtaining board approval on each one, individually. The primary reason for this is to assure an ability to timely handle such requests as they are often presented "last minute" in lieu of foreclosure. The secondary reason is to reduce administrative cost associated with the transaction. FISCAL IMPACT: Approval of this policy will allow Collier County to recover a small repayment, in lieu of no recovery under a foreclosure. These funds would then be reprogrammed for additional down payment assistance. It is estimated that the staff and Board cost to process each application is approximately 6 effort hours at an estimated cost of $500.00. LEGAL CONSIDERATIONS: This item is legally sufficient and requires a majority vote. — JBW GROWTH MANAGEMENT IMPACT: The State Housing Initiatives Partnership (SHIP) program supports efforts to meet the goals, objectives, and policies set forth in the Housing Element of the Growth Management Plan. To the extent funds are returned to the program via a short sale (in lieu of foreclosure), the program is able to more fully support these efforts. RECOMMENDATION: That the Board of County Commissioners approve a Short Sale Policy for the State Housing Initiatives Partnership (SHIP) down payment assistance program and provide authority for staff to process the requests under this policy. Prepared By: Kimberley Grant, Interim Director, Housing, Human and Veteran Services Packet Page -1701- 2/28/2012 Item 16.D.7. COLLIER COUNTY Board of County Commissioners Item Number: 16.D.7. Item Summary: Recommendation to approve a Short Sale Policy for the State Housing Initiatives Partnership (SHIP) program. Meeting Date: 2/28/2012 Prepared By Name: DoriaPriscilla Title: SHIP Loan Processor,Housing, Human & Veteran Services 12/7/2011 8:05:18 AM Submitted by Title: Interim Director, HHVS Name: GrantKimberley 12/7/2011 8:05:20 AM Approved By Name: AlonsoHailey Title: Administrative Assistant,Domestic Animal Services Date: 1/18/2012 1:52:23 PM Name: GrantKimberley Title: Interim Director, HHVS Date: 1/19/2012 2:45:37 PM Name: WhiteJennifer Title: Assistant County Attorney,County Attorney Date: 1/24/2012 10:34:19 AM Name: RamseyMarla Title: Administrator, Public Services Date: 2/10/2012 3:30:46 PM Name: KlatzkowJeff Packet Page -1702- Title: County Attorney Date: 2/17/2012 9:30:27 AM Name: PryorCheryl Title: Management/ Budget Analyst, Senior,Office of Management & Budget Date: 2/17/2012 5:05:20 PM Name: StanleyTherese Title: Management/Budget Analyst, Senior,Office of Management & Budget Date: 2/21/2012 9 :07:18 AM Name: OchsLeo Title: County Manager Date: 2/22/2012 9:11:03 AM Packet Page -1703- 2/28/2012 Item 16.D.7.