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Ordinance 2018-28 ORDINANCE NO. 2018- 2 8 AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, AMENDING CHAPTER 74 OF THE COLLIER COUNTY CODE OF LAWS AND ORDINANCES (THE COLLIER COUNTY CONSOLIDATED IMPACT FEE ORDINANCE) BY AMENDING PROVISIONS RELATING TO THE IMPACT FEE DEFERRAL PROGRAM; CLARIFYING AND ADDING INCOME LEVEL CATEGORIES FOR CONSISTENCY; REMOVING REFERENCES TO THE COMMUNITY WORKFORCE HOUSING INNOVATION PILOT PROGRAM (CWHIP) WHICH WAS SUSPENDED BY THE FLORIDA LEGISLATURE; ALLOWING FOR THE EXTENSION OF RENTAL IMPACT FEE DEFERRAL AGREEMENTS AND THE INCREASE OF THE 225 UNIT LIMIT UNDER CERTAIN CONDITIONS; PROVIDING FOR CONFLICT AND SEVERABILITY; PROVIDING FOR INCLUSION IN THE COLLIER COUNTY CODE OF LAWS AND ORDINANCES; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, Collier County has used impact fees as a funding source for growth-related capital improvements for transportation since 1985; and WHEREAS, on March 13, 2001, the Board of County Commissioners (Board) adopted Ordinance No. 2001-13, the Collier County Consolidated Impact Fee Ordinance, repealing and superseding all of the County's then existing impact fee regulations, and consolidating all of the County's impact fee regulations into that one Ordinance, codified in Chapter 74 of the Collier County Code of Laws and Ordinances (the "Code"); and WHEREAS, Collier County uses impact fees to supplement the funding of necessary capital improvements required to provide public facilities to serve new population and related development that is necessitated by growth in Collier County; and WHEREAS, Objective 1 of the GMP's Housing Element states that the County will seek to provide new affordable housing units in order to meet the current and future housing needs of Underlined text is added;Str e'er " ugh text is deleted Page 1 of 18 legal residents with extremely low, very-low, low, moderate and gap incomes, including senior households and those with special needs; and WHEREAS, in furtherance of the spirit and intent of Florida State Statute 163.3177(6)(f) a, outlining, "...Principles, guidelines, standards, and strategies to be followed in the provision of housing for all current and anticipated future residents of the jurisdiction..."; and WHEREAS, on October 25, 2017 the Board accepted the Community Housing Plan; and WHEREAS,the Community Housing Plan identifies a need for additional affordable units in Collier County,especially affordable rental units; and WHEREAS, the Community Housing Plan suggested several changes to the County's current Impact Fee Deferral program to incentivize the development of additional affordable housing units; and WHERAS, the Board desires to move forward with implementation of those changes to incentivize the development of additional affordable housing units. NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY,FLORIDA, that: SECTION ONE. Article IV, Impact Fee Deferral, Section 74-401, Impact Fee Deferral, of the Collier County Code of Laws and Ordinances is hereby amended to read as follows: Sec. 74-401. -Impact fee deferral. (a) Applicability. Underlined text is added;Struck-threugh text is deleted Page 2 of 18 (1) Pursuant to the requirements established in this section and article IV,the county shall defer the payment of the impact fee for any new owner-occupied or rental development dwelling unit which qualifies as affordable housing under this article. (2) Any person seeking an affordable housing deferral for a proposed development dwelling unit shall file with the county manager an application for deferral and the deferral shall be fully executed and recorded prior to issuance of a temporary or final certificate of occupancy or payment of impact fees, or after receiving a building permit for those permits issued between June 23, 2015 and June 23, 2016. The application for deferral shall contain the following: a. The name and address of the applicant; b. An up to date, complete legal description of the site upon which the development dwelling unit is proposed to be located; c. The maximum income level of the proposed owner or tenant, or if the owner is a developer or builder, the income level of the household to which the dwelling unit it is to be sold or provided for occupancy; d. The square footage and number of bedrooms in each dwelling unit of the development. (3) If the proposed development meets the requirements for an affordable housing deferral as set forth in this article,the county manager may,but is not required to,enter into an impact fee deferral agreement and is authorized to execute such deferral agreements along with any corresponding tri-party agreement intended to further define repayment obligations, as may Underlined text is added; k Struc�•"�^ ^h text is deleted Page 3 of 18 be applicable, with the owner or applicant. The impact fee deferral agreement shall be accepted by the county in lieu of prompt payment of the impact fee that would otherwise then be due and payable but for the agreement. (4) Unless specifically provided to the contrary by majority action of the board, such as by an agreement or condition of development, water and sewer impact fees are fully exempt from all rental and CWHIP impact fee deferral programs. (b) Qualifying owner-occupied dwelling. To qualify for an affordable housing impact fee deferral, an owner-occupied dwelling unit must meet all of the following criteria: (1) The owner(s) or anticipated owner(s) of dwelling unit must have an extremely low, very low, low, or moderate-income level, at the time of final execution by the county of a deferral agreement as those income level terms are defined in section 74-402. (2) The monthly mortgage payment, including taxes and insurance, must not exceed 30 percent of that amount which represents the percentage of the median annual gross income for the applicable household category as indicated in section 74 702 74-402. However, it is not the intent to limit an individual household's ability to devote more than 30 percent of its income for housing, and housing for which a household devotes more than 30 percent of its income shall be deemed affordable if the first institutional mortgage lender is satisfied that the household can afford mortgage payments in excess of the 30 percent benchmark. (3) A dwelling unit shall qualify as "owner-occupied" if: a. written affirmation from the developer to the county guarantees that the requisite affordable housing units will be constructed, and Underlined text is added;Stxask-through text is deleted Page 4 of 18 0 b. the affirmation is in effect at the date of execution of the impact fee deferral agreement by the county, and c. within six months from the date of issuance of the certificate of occupancy er- he execution of the affirmation,whichever is later,any option to purchase is exercised and the qualifying purchaser takes ownership of the dwelling unit. (4) If the qualifying purchaser fails to purchase the dwelling unit within the six-month period,then: a. the deferred impact fee is considered in default as of the date that the fee would have been due without the deferral; and b. the applicant shall pay all of the impact fees, including delinquency fees and interest dating back to the date that the fees would have been assessed but for the deferral as provided in section 74-501. (5) The owner, or if there is more than one owner,both of the owners,must be a first-time home buyer. To qualify as a first-time home buyer, the owner must not have had an ownership interest in his/her primary residence in the past three years. (6) The dwelling unit must be the homestead of the owner(s). The owner(s)of the dwelling unit must be at least 18 years of age and must be either citizen(s) of the United States or be a legal alien who permanently resides in the United States.Proof of United States Citizenship or permanent legal residency must be established to the county's sole satisfaction. The dwelling unit must be granted a homestead tax exemption pursuant to Chapter 196, Florida Statutes. Underlined text is added;Strssk-through text is deleted Page 5 of 18 0 (7) No more than 50 deferral agreements are permitted at any single time for an individual developer, or for any developments that are under common ownership. For purposes of this subsection, "common ownership" means ownership by the same person, corporation, firm, entity, partnership, or unincorporated association; or ownership by different corporations, firms, partnerships, entities, or unincorporated associations, in which a stockbroker,partner, or associate, or a member of his family owns an interest in each corporation, firm, partnership, entity, or unincorporated association. (c) Qualifying rental and community workforce housing innovation pilot program (CWHIP) dwellings unit. (1) To qualify for an impact fee deferral, a dwelling unit offered for rent must meet all of the following criteria: a. The household renting the dwelling unit, including any rental multifamily dwelling unit, must have an extremely low, very low, of low, or moderate income level, at the commencement of the leasehold and during the duration thereof, as those terms are defined in section 74-402. b. The dwelling unit must be and must remain the household's permanent residence. The head of the household must be at least 18 years of age and must be either a citizen of the United States or be a legal alien who permanently resides in the United States. c. In no instance shall rental limits exceed the rental limits established by the Florida Housing Finance Corporation for rents adjusted to bedroom size in projects assisted under the, Florida Housing Finance Corporation or any other local, state, or federal agency, based on unit size. Underlined text is added;Struck text is deleted Page 6 of 18 0 (2) To qualify for an impact fee deferral, a CWHIP dwelling must meet all of the following criteria: a. The residential development must meet all requirements pursuant to F.S. § /120.5095, (the "Community Workforce Housing Innovation Pilot Program"), as amended; be designated by the board of county commissioners as a CWHIP project for Collier County; and be approved and awarded CWHIP funds by the State of Florida. b. For owner occupied CWHIP dwellings, the owner(s) of the dwelling unit must be at least 18 years of age and must be either citizen(s) of the United States, or be a legal alien who permanently resides in the United States. Proof of United States citizenship or permanent legal residency must be established to the county's sole satisfaction. The dwelling unit must be granted a homestead tax exemption pursuant to F.S. ch. 196. c. For rental CWHIP dwellings, the dwelling unit must be and must remain the household's permanent residence. The head of the household must be at least 18 years of age and must be either a citizen of the United States, or be a legal alien who permanently resides in the United States. (d) Repayment for owner-occupied units. (1) All impact fees deferred for owner-occupied dwelling units shall become due and payable and shall be immediately paid in full to the county upon: a. The sale of the dwelling; or Underlined text is added;Strssk-thfeugh text is deleted Page 7 of 18 0 b. Refinancing of the purchase mortgage or loans secured by senior real property security instruments; or c. A loss of the homestead exemption under Section 4, Article X of the State Constitution. d. The first occurrence of any sale or transfer of any part of the affected real property, and in any such event the deferred impact fees shall be paid in full to the county not later then than the closing of the sale, or not later then than the effective date of the transfer. (2) Repayment shall include any accrued interest. Interest shall be computed at the rate of five percent per annum, but no event shall it exceed 25 percent of the total fee amount. (3) Notwithstanding anything in this subsection (d)(1) of this section 74-401, the director - • ' . . . . - • ' : • Community and Human Services Division of the Public Services Department may waive the triggering of the obligation to pay deferred impact fees due to a refinancing if the director determines that the refinancing is for improvements or repairs to the dwelling that will enhance the value of the dwelling, and is of such a nature as not to justify that the deferred impact fees should become due and payable because of the sale, transfer, or refinancing. - . . . - units, single family detached houses, modular homes (also known as residential manufactured buildings) and mobile homes (also known as manufactured homes) as defined in section 71 10& Underlined text is added;Struck-through text is deleted Page 8 of 18 0 units, shall in all events be due and payable not later than ten years after the execution of the impact fee deferral agreement by the county, unless otherwise extended by the board of county commissioners. Such fees shall be accelerated and automatically be due and payable prior to that time period if there is any breach of the subject impact fee deferral agreement by the noncounty party. For CWHIP units, the residential development must at all times continue to meet all requirements of F.S. § 120.5095, (the "Community Workforce Housing Innovation Pilot Program"), as amended, throughout the deferral period, failing which the lien shall become • . . . . ., . .. ., . • rcaftcr gen ate-interer athe-eJtatuter dgmcnt rate yet forth in F.S. § 55.03, as amended. (f) Repayment obligations. (1) Generally. The impact fees deferred shall be a lien on the property until all requirements under this article and the agreement have been satisfied. (2) Rentals. a. Annually, the owner (i.e., lessor) of a rental dwelling unit, including any multi- family rental dwelling unit, shall provide to the county manager an affidavit of compliance with the criteria set forth in this section. The affidavit must be filed within 30 days of the anniversary date of the issuance of a certificate of occupancy, or at another mutually agreed on date. If the affidavit is not filed on time the affiant shall pay to the county a$50.00 late fee. b. If the income of any unit renter which originally qualified as extremely low,very low, of low, or moderate income level as defined in section 74-402, below, exceeds the standards set forth in subsection (c) by more than 40 percent, then the deferred impact fee shall become immediately due and payable by the owner or, in the alternative, the owner shall have 90 days to comply with the affordable housing Underlined text is added;Struslk-threugh text is deleted Page 9 of 18 0 standards set forth in this section. Developments which are then monitored by the Florida Housing Finance Corporation, or any other state or federal agency,will not be required to file this separate affidavit of compliance with the county manager. The applicant shall provide a true copy of these monitoring reports to the Geunty Department of Financial Administration and Housing Community and Human Services Division. (3) Owner-occupied dwelling units. If the household income of the qualified owner- occupied dwelling unit rises above the standards for deferrals set forth in subsection (b) of this section, the owner shall maintain the deferral. Notwithstanding the foregoing, all outstanding impact fees deferred shall be paid in full upon sale or transfer of the dwelling unit. (g) Deferral agreements. The owner receiving an impact fee deferral shall enter into a deferral agreement of impact fee agreement with the county. A separate deferral agreement shall be executed for each qualifying owner-occupied dwelling or qualifying rental dwelling development. While applicants are required to enter into a deferral agreement in order to receive a deferral of impact fees, nothing in this section requires the county to enter into a deferral agreements. The deferral agreement shall provide for, at a minimum, the following and shall further include such provisions deemed necessary by the board to effectuate the provisions of this article: (1) The legal description of the dwelling unit. (2) Where an impact fee deferral is given to an owner who will be selling or renting the dwelling unit to a subsequent purchaser or renter, the development must be sold or rented to households meeting the criteria set forth in this article in order to maintain the deferral. Underlined text is added;StrnslFthr-eugh text is deleted Page 10 of 18 0 (3) For each such owner-occupied dwelling unit, the amount of impact fees deferred shall be paid to the county in full upon sale. For rental units, including any multifamily dwelling I unit, the impact fees deferred shall in all events be due and payable no later than ten years after the execution by the county of the impact fee deferral agreement. Payment of deferred impact fees for qualifying rental multifamily units may be extended beyond 10 years on a case-by-case basis with majority approval by the Board of County Commissioners. Such fees shall be accelerated and thereby be automatically due and payable prior to that time period if there is any breach in the subject impact fee deferral agreement by the noncounty party. (4) The deferred impact fees shall be a lien on the property. The lien may be foreclosed upon in the event of noncompliance with the requirements of the agreement. The agreement described herein shall operate as a lien against the dwelling unit. The lien shall terminate upon the recording of a release or satisfaction of lien in the public records of the county. Such release shall be recorded upon payment in full or completion of the terms.Neither the deferred impact fees nor the agreement providing for the deferral of impact fees shall be transferred, assigned, credited or otherwise conveyed from the dwelling unit. The deferrals of impact fees and the agreement thereto shall run with the land. (5) Upon satisfactory completion of the agreement's requirements, the county shall record any necessary documentation evidencing same, including,but not limited to, a release of lien. (6) In the event the owner is in default under the agreement, and the default is not cured within 30 days after written notice is provided to the owner, the board may at its sole option collect the impact fee amounts in default as set forth by article V, section 74-501, or bring a civil action to enforce the agreement or declare that the deferred impact fees are then in default and immediately due and payable. The board shall be entitled to recover all fees and costs, including attorney's fees and costs, incurred by the county in enforcing the agreement, plus Underlined text is added;Stwsk-through text is deleted Page 11 of 18 0 interest at the then maximum statutory rate for judgments calculated on a calendar day basis until paid. (7) The agreement shall be binding upon the owner's successors and assigns. (8) The agreement shall be recorded in the official records of the county at no cost to the county. (h) Ceiling on deferrals. (1) The aggregate amount of impact fee owner occupied deferrals granted per fiscal year pursuant to subsection(b)of this section shall be limited, in total,to an amount not exceeding three percent of the previous years' total impact fee collections, not including water and wastewater impact fees with no roll over in funding. (2) Deferrals shall be available on a first-come, first-served basis. If the requests for deferrals exceed the number of deferrals available,the county manager may allocate deferrals based on the extent to which the deferrals implement the comprehensive plan,or other criteria based on policies and procedures that may be adopted by the board of county commissioners. (3) The county manager shall maintain a tracking system to ensure that the aggregate amount of impact fee deferrals do not exceed the deferral ceilings established in this subsection. (4) The aggregate amount of impact fee rental deferrals granted pursuant to subsection (c) of this section shall be limited,in total,to 225 units per fiscal year with no rollover of funding units. The 225-unit limit may be exceeded on a case-by-case basis with majority approval by the Board of County Commissioners. Underlined text is added;Struckck text is deleted Page 12 of 18 0 (i) Amendments. Any changes or amendments to this article or the minimum funding requirements adopted in this article must occur as an ordinance amendment at a public hearing of the board of county commissioners. (j) Eligible dwelling unit categories. Agreements for the deferral of impact fees for affordable housing may only be approved for the following types of dwelling units: (1) Single-family residences that are fully detached, and either owner-occupied or rental dwelling units, or (2) Owner-occupied or rental dwelling units in a residential condominium, townhouse or duplex structure, or (3) Rental (leased) multifamily dwelling units. (4) Rental modular homes that meet, as a minimum,the then current standards of F.S. ch. 553,for homeownership or rental,and that bear the department of community affairs insignia seal certifying that the structure is in compliance with the Florida Manufactured Buildings Act of 1979, as amended or superseded. (5) Rental mobile homes that are constructed to then applicable standards promulgated by the United States Department of Housing and Urban Development (HUD) and that bear a two inch by four inch metal, rectangular red and silver certification label on each section of the home certifying that the home has been inspected in accordance HUD requirements, and that have been constructed in conformance with federal manufactured home construction and safety standards in effect on the date of manufacture. Underlined text is added;Struele-tlifeugh text is deleted Page 13 of 18 (k) Apartment complexes/multifamily dwelling units.Notwithstanding any provisions elsewhere in this chapter to the contrary, any owner that develops an affordable housing rental apartment complex, consisting in whole or part of rental multifamily dwelling units serving extremely low, very low, and/or low, and/or moderate-income levels and meeting all requirements, and subject to all conditions, of this article shall be entitled to defer 100 percent of the impact fees applicable only to such rental multifamily dwelling units serving extremely low,very low,and/or, low and/or moderate-income levels if: (i) all such deferred impact fees are paid on or before the end of ten years from the date such impact fees are deferred; and(ii)the, rental apartment development shall remain affordable housing qualified (under this article) for a minimum of 30 years from initial occupancy. Payment of deferred impact fees for qualifying rental multifamily units may be extended beyond 10 years on a case-by-case basis with majority approval by the Board of County Commissioners. (1) Subordination. Impact fee deferrals for all owner-occupied dwelling units,will automatically be subordinate to the owner's first mortgage and/or any government funded affordable housing loan such as SAIL or HOME loan. Impact fee deferrals may also be similarly subordinated in the case of rental dwelling units, but only if the owner provides additional cash equivalent financial instruments which will yield the full amount of the deferred impact fees when they may become due and payable. This provision requiring additional security is not applicable to community (m) Timing of payment. Any units meeting the requirements of this subsection that are sold below the maximum home sales price in Collier County for Florida Housing Finance Corporation Programs,or qualify for and enter into an approved deferral agreement shall not be required to pay the impact fees applicable for the unit or building any sooner than issuance of a certificate of occupancy or certificate of completion for the building permit for construction or as may otherwise be set forth in such waiver or deferral agreement. In order to obtain a certificate of adequate public facilities concurrently with the issuance of the final site development plan or plat, the applicant Underlined text is added;Struck-threugh text is deleted Page 14 of 18 0 shall first enter into an approved deferral agreement with Collier County or provide a notarized affidavit to the county manager, which must include the following: (1) Name of project, legal description and number assigned by Collier County to the development order; (2) Name of applicant and owner, if different; (3) Number of dwelling units; (4) Statement of intent that the subject dwelling unit sales price will meet the affordability guidelines of the Florida Housing Finance Corporation for Collier County. (n) Certificate of occupancy requirements on filing of affidavit. Prior to the issuance of a certificate of occupancy for individual dwelling units which have provided the foregoing affidavit instead of entering into a deferral agreement with Collier County,the applicant must also provide a copy of the executed sales contract to the county manager demonstrating a qualifying sales price. A copy of the closing statement demonstrating a qualifying sales price will be provided to the county manager within ten days of the closing of the sale of each qualifying dwelling unit. (o) Violations. Failure to adhere to the requirements set forth by this section may result in the impact fees becoming immediately due and payable and payment being considered delinquent from the date of the notarized affidavit and then becoming subject to the collection provisions provided for in article V, section 74-501, including payment of delinquency fees and interest. (p) Transitional provisions. The following provisions apply to any impact fee deferrals or reimbursements that were granted prior to August 1, 2005: Underlined text is added;Strxek-threagh text is deleted Page 15 of 18 0 (1) Any deferral agreement that was executed prior to August 1, 2005, shall continue in effect in accordance with its terms consistent with the requirements in effect at the time that the deferral agreement was executed. (2) If reimbursement is required pursuant to an impact fee deferral or waiver that was paid with State Housing Initiatives Partnership (SHIP) Program funds, payment will be made to the county affordable housing trust fund. SECTION TWO. Article IV, Impact Fee Deferral, Section 74-402, Affordable housing Definitions, of the Collier County Code of Laws and Ordinances is hereby amended to read as follows: Sec. 74-402. - Affordable housing definitions. The following sets forth the applicable definitions for affordable housing dwelling units. (a) "Very, very Extremely low income families households" means families households whose incomes do not exceed 35 30 percent of the median income for the area as determined by the Secretary of the U.S. Department of Housing and Urban Development. (b) "Very low income families households" means families households whose incomes do not exceed 50 percent of the median income for the area as determined by the Secretary of the U.S. Department of Housing and Urban Development. (c) "Low income families households" means families households whose incomes are more than 50 percent but do not exceed 80 percent of the median income for the area as determined by the Secretary of the U.S. Department of Housing and Urban Development. Underlined text is added;Struck-threugh text is deleted Page 16 of 18 (d) "Moderate income families households" means families house is whose incomes are more than 80 percent but do not exceed 120 percent of the median income for the area as determined by the Secretary of the U.S. Department of Housing and Urban Development. *** SECTION THREE: CONFLICT AND SEVERABILITY. In the event this Ordinance conflicts with any other ordinance of Collier County or other applicable law, the more restrictive shall apply. If any phrase or portion of the Ordinance is held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portion. SECTION FOUR: INCLUSION IN THE CODE OF LAWS AND ORDINANCES. The provisions of this Ordinance shall become and be made a part of the Code of Laws and Ordinances of Collier County, Florida. The sections of the Ordinances may be renumbered or relettered to accomplish such, and the word "ordinance" may be changed to "section," "article," or any other appropriate word. SECTION FIVE: EFFECTIVE DATE. This Ordinance shall be effective upon filing with the Department of State. PASSED AND DULY ADOPTED by the Board of County Commissioners of Collier County, Florida, this day of , 2018. Underlined text is added;Struslk-t r-eugh text is deleted Page 17 of 18 0 ATTEST: BOARD OF : TY COM _. IONERS DWIGHT=. BROVK, CLERK COLLIER • , FLO► By: Attest aS to C stirs.' ;.Deputy Clerk ANDY SOLIS, CHAIRMAN signature only. Approved as to form and legality: Jenni er Belpedio Assistant County Attorney a GC T";pis ordinance filed with the S4 ccreto;y of St,ite's Off ce the 2-�' cryof -0 and ccknowiedpe ntoh that a fi�lr:t received this !`2. ��y of _,�- It • ` _ A E�2 __ _ beauty Ctirk Underlined text is added;Struck-through text is deleted Page 18 of 18 0 41111:' sr�T q¢ ;fi •F G94.\4f FLORIDA DEPARTMENT Of STATE RICK SCOTT KEN DETZNER Governor Secretary of State May 24, 2018 Honorable Dwight E. Brock Clerk of the Circuit Court Collier County Post Office Box 413044 Naples, Florida 34101-3044 Attention: Teresa Cannon Dear Mr. Brock: Pursuant to the provisions of Section 125.66, Florida Statutes,this will acknowledge receipt of your electronic copy of Collier County Ordinance No. 2018-28, which was filed in this office on May 24, 2018. Sincerely, Ernest L. Reddick Program Administrator ELR/lb R. A. Gray Building • 500 South Bronough Street • Tallahassee, Florida 32399-0250 Telephone: (850) 245-6270 www.dos.state.fl.us