Agenda 05/08/2012 Item #16D 85/8/2012 Item 16.D.8.
EXECUTIVE SUMMARY
Recommendation to authorize the Chair to sign a letter to the U.S. Department of Housing and
Urban Development finalizing an agreement between HUD and Collier County to accept a
reduction in HOME funding to repay HOME funds used in support of HOME Activity #195
(Cirrus Pointe).
OBJECTIVE: Respond to a request from HUD Headquarters to finalize an agreement between
HUD and Collier County to accept a reduction in HOME funding to repay HOME funds used in
support of HOME Activity #195 (Cirrus Pointe).
CONSIDERATIONS: On December 14, 2005 the Collier County Housing Development
Corporation ( CCHDC) was awarded $320,000 in federal funds for land acquisition and the
development of affordable housing units. However, CCHDC (now known as the Housing
Development Corporation of SW Florida) failed to materially comply with the terms of the
agreement and no affordable housing units were constructed.
To remedy the situation, in April 2010, Housing, Human and Veterans Services (HHVS) staff
contacted HUD and requested a reduction in HOME grant funds in lieu of repayment of the
$320,000 from Collier County general funds. On February 8, 2011, HHVS received HUD
Miami's approval to the reduction of HOME funds in the amount of $160,000 a year for a two
(2) year period. HUD outlined requirements to finalize the agreement including public notice
and inclusion of the item in the 2011 -2016 Consolidated Plan and the 2011 -2012 Action Plan,
both of which have received Board approval. All notice requirements have been completed by
HHVS as outlined by HUD Miami.
Recently HHVS was contacted again by HUD Miami, and it relayed a further request from HUD
Headquarters. HUD Headquarters requires that the BCC chair submit the attached letter to HUD
which:
1. Requests a voluntary grant reduction for a 2 year period due to hardship in repayment
from general funds
2. Includes language that in exchange for HUD's approval of the County's voluntary
request to reduce its allocation of HOME Funds for FY2011 and FY2012, the County
agrees to waive its right to further appeal the matter as provided in 24 CFR 92.552.
Although the County has adhered to the direction provide by HUD's Miami Office to resolve
this issue, if HUD's Washington D.C. office does not approve the request for voluntary
reduction, the County may be required to pay back the sum from local funds; subject to the
County's decision whether to appeal such a decision.
Staff recommends that the Board authorize its Chairman to sign and send the attached letter.
Without the voluntary reduction request, the only alternative is to provide the reimbursement
with local funds. The Board previously opined it does not wish to utilize local funds if there is a
viable alternative; and staff pursued that course, as directed by HUD Miami, whereby the
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5/8/2012 Item 16.D.8.
County's voluntary agreement to reduce its HOME funds over a two -year fiscal period would
satisfy the repayment obligation.
FISCAL IMPACT: The table below provides a history of HOME funding levels and the
anticipated result of the pay back in the amount of $320,000 over a two -year period. Eligible
HOME activities will be funded at a reduced level to maintain no impact to the General Fund.
Fiscal
Year Award Adiiletmant Ti;.,.,1 A.., --A
2009
$ 754,154
$ 754,154
2010
$ 748,202
$ 748,202
2011
$ 662,126
$ (160,000)
$ 502,126
2012
$ 456,777
$ (160,000)
$ 296,777
2013*
$ 456,000
$ 456,000
*assumes appropriation is flat
GROWTH MANAGEMENT IMPACT: None.
LEGAL CONSIDERATIONS: This item has been reviewed and approved by the County
Attorney's Office, is legally sufficient for Board action and only requires a majority vote for
approval —SRT.
RECOMMENDATION: Recommendation to authorize the Chair to sign a letter to the U.S.
Department of Housing and Urban Development finalizing an agreement between HUD and
Collier County to accept a reduction in HOME funding to repay HOME funds used in support
HOME Activity #195 (Cirrus Pointe).
PREPARED BY: Margo Castorena, Federal and State Grants Manager
Housing, Human and Veteran Services
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COLLIER COUNTY
Board of County Commissioners
Item Number: 16.D.8.
5/8/2012 Item 16.D.8.
Item Summary: Recommendation to authorize the Chair to sign a letter to the U.S.
Department of Housing and Urban Development finalizing an agreement between HUD and
Collier County to accept a reduction in HOME funding to repay HOME funds used in support of
HOME Activity #195 (Cirrus Pointe).
Meeting Date: 5/8/2012
Prepared By
Name: K1opfWendy
Title: Operations Coordinator,Housing, Human & Veteran Se
3/16/2012 10:26:56 AM
Submitted by
Title: Manager - Federal/State Grants, HHVS
Name: CastorenaMargo
3/16/2012 10:26:57 AM
Approved By
Name: CastorenaMargo
Title: Manager - Federal/State Grants, HHVS
Date: 3/16/2012 4:53:27 PM
Name: AlonsoHailey
Title: Administrative Assistant,Domestic Animal Services
Date: 3/19/2012 8:28:19 AM
Name: GrantKimberley
Title: Interim Director, HHVS
Date: 3/20/2012 1:59:57 PM
Name: AckermanMaria
Title: Senior Accountant, Grants
Date: 3/20/2012 3:18:12 PM
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Name: CarnellSteve
Title: Director - Purchasing/General Services,Purchasing
Date: 3/27/2012 10:46:04 AM
Name: AckermanMaria
Title: Senior Accountant, Grants
Date: 3/28/2012 3:54:03 PM
Name: TeachScott
Title: Deputy County Attorney,County Attorney
Date: 4/23/2012 12:02:57 PM
Name: StanleyTherese
Title: Management/Budget Analyst, Senior,Office of Management & Budget
Date: 4/25/2012 11:14:40 AM
Name: PryorCheryl
Title: Management/ Budget Analyst, Senior,Office of Management & Budget
Date: 4/27/2012 9:04:09 AM
Name: KlatzkowJeff
Title: County Attorney
Date: 4/27/2012 2:39:07 PM
Name: OchsLeo
Title: County Manager
Date: 4/29/2012 8:27:57 PM
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5/8/2012 Item 16.D.8.
5/8/2012 Item 16.D.8.
a
Board of Collier County Commissioners
Donna Fiala Georgia A. Hiller, Esq. Tom Henning Fred W. Coyle
District 1 District 2 District 3 District 4
May 8, 2012
Ms. Mercedes Marquez
Assistant Secretary, Community Planning and Development
US Department of Housing and Urban Development
4517"' St. SW, Room 7100
Washington D.C. 20410
Maria Ortiz, CPD Director
U. S. Dept of Housing & Urban Development CPD
Brickell Plaza Federal Building
909 SE First Avenue Room 500
Miami, FL 33131 -3042
RE: HOME Program Open Activity #195- Cirrus Pointe
Dear Mesdames Marquez and Ortiz:
Jim Coletta
District 5
This letter is in reference to Collier County's HOME Open Activity #195 (Cirrus Pointe). Early in 2011, via correspondence with the
Miami Field Office, Collier County requested that it be allowed to take a voluntary reduction in HOME funds over a two year period
to resolve the Cirrus Pointe issue.
The County now understands that HUD Headquarters is reviewing this matter. This letter is to reiterate it would be a hardship for the
County to reimburse the funds concerning this matter from non - federal funds. The County has experienced several years of declining
revenues, which is expected to continue. Should the County be required to reimburse the funds associated with the Cirrus Pointe
project from non - federal funds, the County could face substantial reductions to staff and services to compensate for the repayment.
Consequently, the County respectfully requests that HUD allow the County to satisfy this issue by reducing funding over a two year
period through a reduction of HOME funds (FY 2011 and FY2012).
Subject to HUD's approval in writing of Collier County's voluntary request to reduce its HOME grant funds allocation as requested
herein, Collier County will waive its right for a hearing to address this matter as allowed under 24 CFR § 92.552.
Sincerely,
Fred W. Coyle, Chairman
Collier County Board of County Commissioners
CC: Steve Carrell, Interim Public Services Division Administrator
Kimberley Grant, Interim Director, Housing Human & Veteran Services
Attachment: HUD Miami Letter, dated April 8, 2011
3299 Tamiami Trail East, Suite 303 • Packet Page -1028- 239- 252 -8097 • FAX 239 - 252 -3602
5/8/2012 Item 16.D.8.
'pJYEN7pA, U.S. Department of Housing and Urban Development
o* * r
Atlanta Region, Miami Field Office
Brickell Plaza Federal Building
909 SE First Avenue, Rm. 500
Miami, FL 33131 -3042
April 8, 2011
Marcy Krumbine, M.P.A., Director
Collier County
Housing, Human & Veteran Services
3339 Tamiami Trail East
Suite 211
Naples, FL 34112 -5361
SUBJECT: HOME — Open Activity
Cirrus Pointe
Dear Ms. Krumbine:
This letter is in response to the County's HOME Open Finding on activity #195 — Cirrus
Pointe. A review of the County's response reflects that the County agrees to take a voluntary
reduction in HOME funds over a two year period for a total amount of $160,000, commencing with
the County's 2011 -2012 Action Plan and ending with the County's 2012 Action Plan for a total of
$320,000.
Since the reduction in HOME funds will not commence until October 1, 2011, this office is
unable to close out this finding until after the County's 2011 and 2012 Action plans have been
received and reviewed for verification of reduction of HOME funds totaling $320,000. In the
interim the County must list the reduction in its 2011 and 2012 Action Plans along with ensuring
that the required Citizen Participation Process is met by advertising the reduction in HOME funds
along with providing the required 30 day comment period. In addition, the County needs to amend
the applicable Action plan to reflect the cancellation of the activity. Please provide documentation
that would reflect that all requirements have been met (i.e., public ad, 30 day comment period, etc.)
once complete.
In reference to the County's request for assistance on cancelling this activity in IDIS please
refer to the following HOME IDIS Training Manual for PJs which provides guidance on cancelling
an activity. The training manual can be accessed at the following website:
http: / /www.hud.jzov/ offices/ cpd/ affordablehousing [projzrams/home/home idis manual Ri cfm
For more specific guidance on cancelling an activity please refer to Chapter 19 at the
website below: .
hqp: / /www.hud.gov/ offices/ cpd/ affordablehousing /proprams/home/home idismanual/HOME man
ual chapl9 Rdf
HUD's mission is to increase homeownership, support community
development and increase access to affordable housing free from discrimination.
www.hud.gov espanothud.gov
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5/8/2012 Item 16.D.8.
This office will continue to work with the County in order to ensure that the County is in
compliance with applicable rules and is available to provide TA as needed. If you have any
questions pertaining to this matter, you may contact Nora E. Casal, Community Planning
Development Representative at (305) 520 -5009.
Sincerely,
Maria .O -Hill
Director, Community Planning
and Development Division
/cc: Margo Castonera, MBA.MB., Grants and Operations Manager
Housing and Human Services
Ann D. Chavis, Program Manager
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