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Agenda 07/26/2011 Item #16D167/26/2011 Item 16.D.16. EXECt1TIVE SUMMARY Recommendation to approve and ratify Staff's authorization of a one -time price increase requested by Caribbean Lawn & Garden based on unexpected site conditions at County -Owned Neighborhood Stabilization Program properties. This modification will authorize payment for services in the amount of $1,960. OBJECTIVE: To approve and ratify Staffs authorization of a one -time price increase requested by Caribbean Lawn & Garden based on unexpected site conditions at County -Owned NSP properties. The modification will authorize payment for services rendered in the amount of $1.960. CONSIDERATIONS: On September 15, 2009, the Board of County Commissioners awarded contracts for RFP 09 -5266, "Lawn Care Maintenance for Neighborhood Stabilization Program" to five (5) firms. one of which was Caribbean Lawn & Garden of SW Naples FL. Inc. (Caribbean Lawn). The contract is valid through September 15. 2011. The Housing, Human and Veteran Services Department (HHVS) obtained quotes for lawn mowing of NSP Properties to occur twice a month from all five (5) Contractors. On July 21. 2010, Caribbean Lawn was awarded the project as the lowest, responsive Contractor. Fifty -six newly acquired properties had not been mowed or maintained for a number of months: these properties are often foreclosed upon and often are not properl maintained. A chart containing the location of the subject properties is attached to this item. Before commencing work. Caribbean Lawn notified HHVS that the properties were significantly overgrown and were in violation of Collier County codes and ordinances. As such, the initial lawn care maintenance required additional time, equipment. and labor not initially contemplated. As such, Caribbean Lawn requested, and HHVS approved. a one -time price increase of $35.00 per property. Caribbean Lawn has completed the work. (Standard lawn moving is $60 per property. The increased price was $95 per property.) HHVS approved the one -time price increase via Staff issued Change Order: however this Change Order was not processed in compliance with the Purchasing Policy. The vendor performed the work based on the Staff issued Change Order, the County has received the benefit of the services, and Staff recommends approval of this Change Order so that the vendor may be paid based on its invoice. Lawn care is an eligible NSP expenditure pursuant to 24 CFR 570.201(b) and is included in Collier County's Board approved NSP Administrative Plan, Section IX(F), Program Procedures. FISCAL IMPACT: Approval of this item will result in Neighborhood Stabilization Program expenditures of $1,960. No general funds are associated with this project. LEGAL CONSIDERATIONS: The September 15. 2009 Executive Summary which approved this contract (Agenda Item No. 16D4). authorized 5 lawn care firms to maintain the County's NSP properties. The process was to be "When lawn care maintenance is required, quotes will be obtained from all five (5) Contractors and the project will be awarded to the lowest, responsive bidder." Staff states here that "On July 21, 2010. Caribbean Lawn was awarded the project as the lowest- responsive Contractor." Presumably.. each of the 5 approved contractors had the same opportunity to inspect and bid on the properties. After receiving the contract as the lowest bidder. Caribbean Garden now seeks extra compensation for this work. based on site conditions. There is a difference between unforeseen site conditions (an example in a construction projeeti is underground °ntuck" which borings missed and which Packet Page -2190- 7/26/2011 Item 16.D.16. will now require pilings) and site conditions that are readily apparent from visiting a site (for example, no one is mowing the property). It is the opinion of the County Attorney that staff did not have the authority to authorize the contractor to proceed with the job at an increased compensation. It is further the opinion of the County Attorney that to continue to grant after the fact authorizations erodes both the entire bidding process and what should be a required staff practice to hold County vendors to their obligations. That said, the County Attorney is providing an "after the fact' review of Staffs authorization of a Change Order based on a vendor requested price increase. The Board is authorized to determine the validity of equitable claims such as quantum merun and determine that the relief sought equitably reflects the .fair value of the work performed and furnished to the County, for which the County has benefited. The Board may approve and ratify Staffs Change Order and authorize any payment owed to the vendor. Accordingly, this item is legally sufficient and requires majority vote. —7AK GROWTH MANAGEMENT IMPACT: Implementation of the Neighborhood Stabilization Program will further the goals and objectives of the Housing Element of the Growth Management Plan. RECOMMENDATION: Recommendation to approve and ratify Staff's authorization of a one -time price increase requested by Caribbean Lawn & Garden based on unexpected site conditions at County- Owned Neighborhood Stabilization Program properties. This modification will authorize payment for services in the amount of $1,960. Prepared By: Frank Ramsey, Housing Manager, Housing, Human & Veteran Services Attachments: Invoice Staff Authorized Modification Order Packet Page -2191- COLLIER COUNTY Board of County Commissioners Item Number: 16.D.16. 7/26/2011 Item 16.D.16. Item Summary: Recommendation to approve and ratify Staff's authorization of a one- time price increase requested by Caribbean Lawn & Garden based on unexpected site conditions at County -Owned Neighborhood Stabilization Program properties. This modification will authorize payment for services in the amount of $1,960. Meeting Date: 7/26/2011 Prepared By Name: RamseyFrank Title: Manager. Housinl Human and Veteran Services 7/5/2011 3:53:14 PM Submitted by Title: Manager, Housing, Human and Veteran Services Name: RamseyFrank 7/5/2011 3:53:16 PM Approved By Name: AckermanMaria Date: 7/6/2011 7:41:03 AM Name: AlonsoHailev Title: Administrative Assistant.Domestic Animal Services Date: 7/8/2011 9:23:27 AM Name: CamellSteve Title: Director - Purchasing /General Services.Purchasing Date: 7/8/2011 9:30:53 AM Name: hmmbineMarce Title: Director - Housing $ Human Services,Housin„ Human R Veteran Services Date: 7/12/2011 1:27:19 PM Packet Page -2192- 7/26/2011 Item 16.D.16. Name: PriceLen Title: Administrator- Administrative Services. Date: 7/12!2011 3:46:48 PM Name: GreeneColleen Title: Assistant County Attorney.County Attorney Date: 7/13.'2011 3:23:33 PM Name: RamseyMarla Title: Administrator, Public Services Date: 7/15/2011 11:23:35 AM Name: GreeneColleen Title: Assistant County Attornev.County Attorney° Date: 7/15/2011 2:59:42 PM Name: KlatzkowJeff Title: Countv Attorney, Date: 7/19/2011 9:24:48 AM Name: PryorCheryl Title: Management/ Budget Analyst. Senior,Oftice of Management & Budget Date: 7/19/2011 9:52:28 AM Name: lsacksonMark Title: Director -Corp Financial and Mg , nt Svs,CMO Date: 7/19/2011 10:59:55 AM Packet Page -2193- 7/26/2011 Item 16. D.16. GMSHNOR MD STA §M=ATWM NG� TMU � AtLDN MjOwIC OONTRACTOR .IOS AODRt�A ,nw kx f2oF1rab11M'allon Work onawsd kdo on 7r11P20f0 b�h1AMn llla ah I Owner and Conlrealol and approved by ft b" add dare w dkrr dslsio s Vu wa WnwMej ft 10 1A°kdo 11M IbIIOWIIIp e�ynyM 1. 2. lam dw b tltsst om Add and rw w4s kMra aw atladod spreed ahNt of bidesar par lot =2, "o.n TheweekorinrFlOW deadboIs inIn Tindsfdawb: i WON" MIS r9� a nwr low Of • - a.a..- aa►-ecc N30aUe 7 NNUI N636HItltlO NdZZ98 DIOZ 0% dog t'd Sf9L- SSi -6EZ N3QMH0 9 NI1U� wu3saiduo Nd*Z:t 0102 *i dag Packet Page -2194- 7/26/2011 Item 16.D.16. Caribbean Lawn & Garden of S. W. Naples, Fl, Inc. Invoice P.O. Box 990866 E -MAIL Date Invoice # Naples, FL 34116 Phone: 239-455-7278 caribbeanlawns�earthlink.net I0i4i2010 13043 Fax: 239- 455 -7645 site Location Bill To HOUSING & HUMAN SERVICES DEPT COLLIER COUNTY BLDG H BOARD OF COUNTY COMMISSIONERS 3301 TAMIAMI TRL E STE 211 ATTN: FINANCE DEPARTMENT NAPLES, FL 34101 -3016 PO BOX 413016 PO #4500119268 NAPLES. FL 34101 -3016 Quantity Description Rate Amount 56 1 TIME INCREASE OF $35 PER LOT DUE, TO GREAT OVER GROWTH 1 35.00 1.960 00 Balance Due $1.960.00 Thank you for your business. Total $1,960.00 Packet Page -2195- 7/26/2011 Item 16.D.16. Address Zip Code Fee increase 2860 64th Ave NE 34120 $ 35.00 4437 54th Ave NE 34120 $ 35.00 4040 31 st Ave NE 34120 $ 35.00 3620 20th Ave NE 34120 $ 35.00 2820 39th Ave NE 34120 $ 35.00 2560 66th Ave NE 34120 $ 35.00 4141 47th Ave NE 34120 $ 35.00 2765 58th Ave NE 34120 $ 35.00 2540 50th Ave NE 34120 $ 35.00 2545 45th Ave NE 34120 $ 35.00 380 47th Ave NE 34120 $ 35.00 2820 47th Ave NE 34120 $ 35.00 3120 Wilson Blvd N 341201 $ 35.00 2560 47th Ave NE 341201 $ 35.00 3765 29th Ave NE 341201 $ 35.00 4910 42nd St NE 34120 $ 35.00 781 GG Blvd W 34120 $ 35.00 3671 18th AVE NE 34120 $ 35.00 2975 4th St NE 34120 $ 35.00 3870 4th Ave NE 34120 $ 35.00 3685 41 st Ave NE 34120 $ 35.00 4460 22nd Ave NE 34120 $ 35.00 3380 20th Ave NE 34120 5 35.00 Dominion Dr 34112 $ 35.00 Andrews Ave Hallendale Lot 58 34112$ 35.00 Andrews Ave Hallandale Lot 59 34112 $ 35.00 Andrews Ave Hallendale Lot 63 34112 $ 35.00 2742 Storter Ave 341121 $ 35.00 4561 Dominion Dr 341121 $ 35.00 3614 Poplar Way 1 341121 $ 35.00 2842 Barrett Ave 341121 $ 35.00 3502 Caloosa St 341121 $ 35.00 3402 Seminole Ave 341121 $ 35.00 3061 Areca Ave 341121 $ 35.00 5378 -5380 Carlton 34113 $ 35.00 5230 Gilchrist St 34113 $ 35.00 5501 17th Ave SW 34116 $ 35.00 2040 46th Terr SW 34116 $ 35.00 5031 32nd Ave SW 34116 $ 35.00 2197 44th Ter SW 34116 $ 35.00 5300 17th PI SW 341161 $ 35.00 4814 30th PI SW 34116 $ 35.00 5418 23rd CT SW 34116 $ 35.00 5410 26th Ave SW 34116 $ 35.00 4420 19th Ave SW 34116 $ 35.00 2224 50th Ter SW 34116 $ 35.00 Packet Page -2196- 7/26/2011 Item 16.D.16. Address Zip Code Fee Increase 5360 19th PI SW 34116 $ 35.00 5271 24th Ave SW 34116 $ 35.00 5465 Hunter Blvd 34116 $ 35.00 1660 41st Ter SW 34116 $ 35.00 2184 Sunshine Blvd 34116 $ 35.00 4471 32 nd Ave SW 34116 $ 35.00 4913 22nd PL SW 34116 $ 35.00 5283 24th Ave SW 34116 $ 35.00 2183 41 st St SW 34116 $ 35.00 2883 62nd Ave NE 34120 $ 35.00 TOTAL $ 1,960.00 Packet Page -2197- NSP FAQ Detail , ---- ...a. _. ,. ,,,,, 7/26/2011 Item 16.D.16. FAQ ID: 86 Question: Updated There is a period of time between acquisition, 0412712010 rehabilitation, and resale of a property when the NSP1 Posted grantee must maintain the property (e.g., mow the grass, 1110712008 remove snow, carry insurance, etc.). Are property Topic(s): maintenance costs eligible under NSP1 as program delivery Rental Property costs? Management Audiences(s): Yes, maintenance costs would be classified as disposition NSP1 Grantees costs and are allowable under several NSP1 Eligible Uses. Disposition is one of the correlated eligible activities from the CDBG entitlement regulations that is listed in the NSP1 Notice [See chart on page 29228 of the Bridge Notice (Federal Register Notice, June 19, 2009).] The CDBG regulations at 24 CFR 570.202(b) specifically permit temporary property maintenance as part of disposition. Note that when the grantee sells the unit to a homebuyer, NSP1 limits the sales price to the homebuyer to no more than the amount of the grantee's total costs to acquire, redevelop, or rehabilitate the unit. Property maintenance costs cannot be included in the determination of the maximum sales price to the beneficiary. Page l of 1 Packet Page -2198- 7/26/2011 Item 16.D.16. 58338 Federal Register; Vol. 75. mi iH4'Mondi%. October b. 2008 %Notices Requirements 1. Use of grant funds must constitute an eligible use under HERA. �. Jr. addition to home an eliciblu NSP Lill- of lunds. each activiiv funded under this notice, must also be CDBG- eligible under 42 U.S.C. 5:305(al and meet a CDBG national ohlectivu 3.4. Certain CD G- vheihle activities correiatr, to specific NSP- oligibic uses and vice versa, 42 U.S.C. 53051a1 and 24 CFR 570.201 -205 and 482(al through (dl ❑ re 5ll versed ad I n rile extent necessi r \' to allow the e-lir{fule uses do%crihed under section 2301(c)(3) of HERA in accordance will) this paragraph )including, the table and suimaragranns below) cr with permission grantee. in writing, b} HUD upon a written request by the granter that demonstrates that the Proposed activity constitutes an cligibie- us, under NSP. All NSP Tamers. including states. will use the NSP categories and CDBG entitlensrd reguiatlens listed helow- NSP- eligible uses Correlalec eligible activities from the CDBG entiliement regulations (A) Establish financing mechanisms for purchase and redevelopment of foreclosed upon homes and residential properties including such mechanisms as soft - seconds loan toss reserves and sharedequily loans for dw- and moderate -income homebuyers- (B) Purchase and rehabilllale homes and residential properties that have been abandoned or foreclosed upon in order to sef. rent . or redevelop such homes and properties (C) Establish land banks for homes that have been foreclosed upor _.. (D) Demolish blighted structures (E) Redevelop demolished or vacant properties b. HUD will no! consider rmiuests I( allow foreclosure nrevenorin activittes cr to allow clemohnall of structures that are not blighted. nr u) allow purchase of residential properties and homes teal have not been abandoned or turoclosed unon as nrovined to HERA and defineti in this notice HI'D hors not ha -, flu authorilt in permit uses OI activities not aulharized be HERS ^.. ;. Noun construction of musing i:- olieible as nart of ehtiibif -use (E) k rednvelpu denlofisned or vacan! nroperlte, of 24 CFR 57C,.3olln; is waived lour. an ative altern requirement provided 101 42 C S.C- 53WOal 1:1 Lo, estbnl necessar_c it, allot,, ramri tea ill NSP- assisted iulmeawnershln assistance to ne.rsonn whose 'mcnme does opt exceed 120 Percent of median IucOnL 4. Alternauha requirement for Inc limitation on niannin2 inn administra ivy costs. 24 CFR 570.200f "; and 570.4 B91 a)i3; are tvdlved m tier ,ztem nrcessary in ulintl each ,grano'i under this notice In exnenli no nor, Ihar. 10 nercerlt Ili It, Brant amount. 10 perc0nl ni tun amnow of 2ruglnn inarmw rrrcivn❑ u:' iIV �rnntoo . tot activitir.;. ulipibl, undtir _, Cf7l, 570.201- rr 2o0. The requirements e'. ?= 07L 570.4811 air, XI,11vud LL, it, (TMOB' Iltet nee? requ [ Ti stale m1 n 1"11" neral admulirtl 111P, cnsl Slaw,, ma. psi • As part o: an activity delivery cost for an eligible activity as defined In 24 CFR 570.206. • Ants, the ektable activities fisted bald, to lee extent finandmg meoh- anlsms are used to carry them out • 24. CFR 570201tal Acquisition (b) Disposition. (it Relocation. and m) Direct homeownership assistance (as modified below). • 570.202 eligible rehabilitation and preservation activities for homes and other residential properties (HUD notes that rehabilitaaon may Include counseling for those seeking to take part in the activity) 24 CFR 570.2011 aI Acouisitior and al Disposition. • 24 CPR 57; 201111 Clearance for blighted structures only. 2- CPR 57C.2011a, Acamsiaon. (b) DlsoosNOn. (c) Pubfic facilities and Improvements. is) Pubic services for housing counseling. but only to the extent that counseling benef cianes are limited to prospective purchasers or ten- ants of the redeveloped properties. tit Relocation and (n) Direct homeownership assistance (as modified uslowl. • 2N Community based development organs ations KSP hm<i- ❑older lips. 1(I pi ;'Lan'. Inititation Ic provide IgCalu l!�1 aF5I51a11n1' In Inrdtl ^_n Vn1 nitaellle anri nonproiit prcmrap participants.'. ,. Rtulabilil dim :; SfdnunJ'd° Backu'ouut HERA provides that auly NSP - assisted rchabilrmiun of I Inrer.inse,d -unon 1101111, or residential proper:- shall h, lg III, extent neCassar" 1" CnIIl Pew 14i1I1 apnlicairir 1131", cndcs. and 01110: I'UeulrClll:!I11F relating 0, Housing safer'. uuuhl,., and naollabiiii" . it: Toner to sell . rent, it redcaelop such hangs arc praporues. 'fins imposes .I requirement Il d Cities nit v\), : in tilt _DBG doer, -. Tin means tut eac t, draroet, must describe nr rah rbn(:e in ns NSP action plan anifaidinen, wild: a, kand Oaroli slancurds i will anon for NSP- asslslvo rdtrlbdiuniolt. HIT) i +'ill numitor In t'.nsur, the srnndard, arc lnnmansm":: ii;Tn drllut-- rellonil i ldt ipp if rwludc inieltavenems w increas• the f,ilt !�fi lcn u. tr: cln: t alrttll r.i l o _ lJlll( ".: 1. I'nrl ": 111 if :l:Oi 101 - rOnON'dblt t ne - ,"w w rur.:os far si Inntt!, lw i,ronf,r11,•s. .tivelt nnnrnA,rn,nt, art alsc (Thi-Jbi, undue Ili, rt -u)a: CDBG rnx_.ram. HI 1; ytrnnnlc (Tilt "tire_ Crain, 1,1 11111(6 not 011,: to Slahilix, Packet Page -2199- ncllghbnrixlons in fire short -term, but to sirauvgicalk incorporate modern. green imuding and aner;v- efLcicn e}' improvunrnts in all NSP activities to provide for long -term affordabdin' and I :creased sustainabihty and attractiveness of housing and neighborhoods. 1. Snie w Hamel 13a(:k¢roimd Section 23011d)I2) of HERA directs that, if an abandoned or foreclosed -upon florae nr residential proporty is purchasee_ redeveloped. or otherwise sold u, an individual as it primary roeidencc, then such sait, . shall b, in an amount eouul to or lase than the cost to acquire and redevoiop or reha'Dilitate Fitch home or poor irly up In a decent. sdic. and habitable condition. (Sales and cinsin" roses are eligible NSP redevelopment or rehabilitation costs.; Kole Willi file m+tximun sales price Lot ;I prop 1.,, is deteimOned be a"grcoating all costs oi acpuisition, nthabitit gran. and Ridt vrs;(qllopnl (mcludin, r,ialvc ac ail i'•,- dglll'ery Cost >. rI fIll-_i enerallc iliac lilctado. anronfl [title, junes- cost, rciawd to tiro sale of the prrgmnn. RonuirrmcnU it it= reloads. cdc'n "railer must inaintain sufficient documentation 4E Ofc. of Asst. Secy., Comm. Planning, Develop., HUD on a religious basis, and include reli- gious references ill its organlzatioI: F nlissior statemenrs lime other gov- erning documents. At An organization that parttcepates in the CDBG program shall not, in pro - viding program assistance. diacrrmi- natc against a progl'am benefteiary Or Prospective program heneficlary on tilt basis of religion or religious belief. t5, CDBG funtix may not be used for the acquisition, construction, or reha- bilitation; of structures to the extent that those stru.cturos are used for in- hdrently rellgmnc act.h9toi. CDBG funds may be used fur' tilt acquisition. construction, or rehablJrtatioi! Of Struc'tm'H6 onlf to the extent that these structures are use(; for con - ducting eligible activities under this part. W11Cr'e a. str UCLUI -V is used foe' both clurible and inherently religious activ). ties. CDBG funds ImIy net escecd tilt cost of those portions of b'xr acquis- ton. constructiou. or rehabilitation Unit arc attr'ihutable tc eligl ble activ!- ties in accordance with the cost ac- counting requirements applicable to CDBG funds in this part. Sanctuaries. chapels. or other rooms that a cDBG- funded religious congregation tides as its principal place of worship. however - are ineligible for CDBG- landed 111- newtorneins. Disposition o' rte,. praj,- era' after the Lora of the ;;ran:, w anv change in use of the propert; drum, the term o` the grant. it, subject to g'ov- ernmer,tnidde rcgulatons yrocerninu real property disposition (sae 29 CFI: parts 84 and 85t . tf, if a Stats in local gcvernmcn, vol- maarily (ontrldUte, iLE own run.lr to supplement federally lunded aCti Cl6le5. the SLaLe ar local government liaz the option to soinegatt the federal 1WIL16 o^ commingle them. However, 41 the funds are cornmmgled- thls socnoid al- plies to all of the Commingled fund:. C63 Fid 34995. Sept. t, haL. a: amend,. tit 5 IT 47031 not 1994 115 JUnF 1992 60 FE 193 - Jan 4. 1995 , 66 F11, 1791 -,. At, t 19 lie Fit 01[ roc b n i, li 7, . M1la.. -b. 1956. ul F: l8f -=. 115,. !. 0`1:71. tioc -i' -GJO. 6F FL ;n 71 > pt- 1:;. 1}0- 6 FIZ =771- Jun- 10, 2003 71, ifl3tili .IP -. 23 lets :77 Po' :657( -son 17, &1. 7/26/2011 Item 16.D.16. § 570.201 0570.203 Basic•. eligible activities CDBG funds maS do used for tilt, toi- iowrng activities: (a) Acqumittr,. Acquisition in whole m' in part by the recipient. or other Public or private nonprofit cults. by purchase,. long' -term lease, donate,, of other WI-9(:. 0' real property [including a11' rights. water rights. rights -of -way-. Casements, and other interests therein, for any public purpose, suldcot to to( limitations of §570.207. Ib) Dtsposidim Disposition. cnrough sale. least. donation, or otherwise. c!' any leaf property acquired with CDBG funds or ltd retention lot public: pur- poses, excluding reasonable costs of iiemporaril7- managln;, such property m- property acquired under urban renewal. provide" Chat tiv, proceed, from ant sueh disposition shall do program in- come subicc: te, th(- redulremen L, sct iorth in §570.50.1. cc Public lucu tw.r anti valarox +ernevrie. :icduisiurn constructor.'., reconstruc- tion. releabihmtaoe or- rnstalfation cl' public lauilit ;es and 1n:Novements. of,- eept as Pl'OVI(ied in §570.207mi, carricef oir1 by the recipient or outer public. o: private nonprofit. entitcs. (However. activities under' till& paragraph may bf direoted Lo the removal o: material and ar'chlt(actural burr'iurs ina: restrict the mobi'.1ty and accessibility of eldetj, or severely disabled rstrsons lac public ta- e,ilities and :mpreivcmcn Lo including .rose proviried :or m 6570.207, :,A, , In unuertaltln such actiy9tea, design fea- lot,.. and lmprovcmen ur wi1u4, pro - Metr one c"y erficien£r: mat- br. rn- clifood such u—u%ltcz ITILo also m- rdudc the execution of architectural de- sign features, acct similar treatments lntcna£d to enhallUe the acdtacti, qual- ;tT of facilities and Improvements re- t- twin° CDBG assistance. suer as aeeo- iatvt pavements, railing,. scuiptm-es, peels of water and fountains. and otter works of art - Pacilitice designed for use It. providing shefte:' for persons having specla'. needs are considered puhllu la- tilltfLC and not sublet*, to tot prtdlibr il,,l 't- lieu. lion m- uoasl uCelOn oe,- soiibeiL nr §570 -2 ri i(3 :. Suet lacilities� 111Cllld ei( It' r� It! Cr.Cr.0 'es�,e0t- t'0.n-SC I :1OS: Lo3paar nu'.t'o• holm : barterer :pause SocItc s: ha!!- wi: - house= fo: run -away children. drn_ offenders w Parolees: croup name: in• Packet Page -2200- 1 1 1 1 - — 7/26/2011 Item 16.D.16. Collier County Housing and Human Services 3301 E Tamiami Trail Building H — Suite 2 1 1 This Administrative Plan is a guide for operating the Collier N a p l e s , F l o r i d a 3 4 1 1 2 County Neighborhood Stabilization Program. This guide was ( 2 3 9 ) 2 5 2 - 4 6 6 3 prepared by the Department of Housing and Human Services. Grant Number B- 08 -UN -12 -0003 Grant Amount $7,306,755 Packet Page -2201- 7/2R/2O11 Item 16.[l.1R,` Page Zuf15 � Packet Page '2ZO2' ( � INTRODUCTION .........`^^....~................`3 |L ACQUISITION OBJECTIVES AND POLICIES ...................... ................................................... ......... `~,^_`,_` A. 0bjectkm(d ......... . ................................... ............ .......... ................. ....... .......................... .......... ,— .... ] 8. Acquisition Policies ....................................................... ...... ........................................................................ .,3 C. Identifying Property ................................................................... ...................... ........................... -- ..... .-4 D. Acquisition Regulations .................................. ....... .............. .............. '` .......... ......... ........ ........... .... ........ 4 |||. REHABILITATION OBJECTIVES AND POLICIES ................................................................................................... 4 � A. Obiecdve(d ......................................... ...,..,,..--,..—.—'_—.....—.,.,--~.—,` � 4 � D. Rehabilitation Policies ... ............................................................ `~~~~~^^—.`.^^—..—,`...—`.,.4 ~� C. Rehabilitation Regulations ............................................................................................................... ......... --5 |\| DIRECT ASSISTANCE OBJECTIVES AND POLICIES .............................................................................................. 5 � A. Objective(s) ...... ...................................................... ....... .................. ........................ .............................. 5 ~~ 8, Direct Assistance Policies .................. ................................... 5 C. Di,ecAssbtnceRegv|ahnns--`.---`—.--,.'.----`—^----`^---^---`---.--.6 V. DEMOLITION OBJECTIVES AND POLICIES ............ ..—.—`...5 A. 0bjestive(s) .... ........................ ......................................... ...................................... ........... .......... . ...... ....... 6 8 Demolition Policies ............................................................ —`...... ............ ``^ ... `~^ ....................... ...... 6 C. Demolition Regulations .............................. ........ ........... ~.... ....... ... .................. ................ .. ... ... ........ 7 Vl. LAND BANK OBJECTIVES AND POUC|ES. ................................................... ~---.^^—..--,—.--,..7 A. Ubjeccka(d ............ ...................... ............ ............................ —.`................ .......................... ......... .... 7 B. Land Bank Policies ............. ............................................................ .... , .......................................................... 7 C. Lank Bank Regulations ............................................................. ... — .... ............ ... ... -- ...... ........................ 7 VII. TRANSFER PROPERTY OBJECTIVES AND POLICIES ............................................................................................ O A. 0bjnctke(s) ..................................................... ......... ................. .................... ......... ................................... V 8� Transfer Property Policies ......... ....................... ......................... ................................................................... V ~~ C, Transfer Property Regulations ...................................................................... .................... ........ .................... 8 V|||. ACTK/OY PROCEDURES ........ ................................................ D A. General ---'`~^^ ........................................... --'~^--```~^~--^--'---~^--...---.D ~~ D. Acquisition nf Real Property ............................................................................................................................. 9 C. Rehabilitation .................................................................................................................. .............................. 10 D� Direct Assistance ...... ..... ............................................................................................. —..—`~.---.l E ~~ . Demolition ~`~----'—`—~^^--~^^^--~---``~`^^--`—`'`^---`^--,---~.--.11 F. Land 8anWng. ...................................... .......................................... ........................................ — ......... --�1l G. Transfer of Property ................... ................................................................................. ......... ................ ...... 1l 0( ~~ � P�O�KAK�PRO�EDUR�J ~^^^—~~~^—^—~^^—~^~~^—^—~~~^~^—`~~^`~~~—.,~.—..—,.l2 A. General .......................................... —........ ............... ^................. ................... .... ... .... ........ ................... lZ D. Environmental Review ...... ............ ....................................................... ........................ ^^—,,__,,~_^, ~~ C. Change Orders ...................... ................................................................................. .................. ................... lZ D. Payment .............................................. ........................................................................................................ �l2 E. Final Inspection ......................... ................................. .............................. ............................................... `l3 F. Monitoring County Owned Properties .............................. ~~~~^—`.~ ................................................... l3 ~~ G. Transfer of Property ............................................................ .......... --- ............. ... ............... ................ _l3 X . PURCHASING POLICY ...... ^................................ ................................. ................................ . ..... '....,^^~~`13 X1. MARKETING PROGRAM .... ................. ......... ............ ................... ................... — ................ ....... —.......... -~ K|| . REPORTING .......................................... ..................... ........... `~ .... ..... ... ................. ...... — .................... l4 X8| PROGRAM INCOME Page Zuf15 � Packet Page '2ZO2' 7/26/2011 Item 16.D.16. - INTRODUCTION Title III of Division B of the Housing and Economic Recovery Act, 2008 (HERA) (Public Law 110 -289, approved July 30, 2008) appropriates $3.92 billion for redevelopment of abandoned and foreclosed homes and residential properties. The grant program under Title III is commonly referred to as the Neighborhood Stabilization Program (NSP). The Department of Housing and Urban Development (HUD) required Collier County to submit a Substantial Amendment to the 2008 -2009 HUD One Year Action Plan no later than December 1, 2008. The required Amendment was approved by the Collier County Board of County Commissioners on November 18, 2008 under agenda item 16D3. Collier County has been allocated $7,306,755.00 to assist with redevelopment of abandoned and foreclosed homes and residential properties. Section 2301(c)(2) of HERA requires the County to distribute the funds to the areas of greatest risk. Factors considered included percentage of home foreclosures, percentage of homes financed by a subprime mortgage related loans, and those likely to face a significant rise in the rate of foreclosures. Collier County will focus efforts in three (3) geographic areas: East Naples (Zip Code 34112), Golden Gate City (Zip Code 34116) and Golden Gate Estates (Zip Code 34120). However, Collier County will continue to monitor local housing data and intends that the NSP Program be flexible to allow for timely reaction to any significant changes in the local housing market. This Administrative Plan is a guide for operating the Collier County Neighborhood Stabilization Program. The major focus of this guide is on the following six (6) eligible activities: Acquisition, Rehabilitation, Direct Assistance, Demolition, Land Banking and Property Transfer. Il. ACOUlSI110N OBJECTIVES AND POLICIES A. Objectives) _ Provide permanent residential structures that will be occupied by a household whose income is at or below 120 percent of area median income. 1. The average purchase price for the sum of all properties acquired shall be discounted at least fifteen (15) percent from the current market appraised value. The minimum discount is five (5) percent from the current market appraised value. 2. The current market appraisal will be made in conformity with the requirements of the URA at 49 CFR 24.103 and completed within sixty (60) days prior to an offer to purchase is made by Collier County or an approved housing partner. 3. All residential properties acquired must have been foreclosed, vacant for at least ninety (90) days, and on the lender's list of current inventory. — 4. All acquisitions shall be made pursuant to a written Agreement for Sale and Purchase and in conformity with the procedures prescribed herein as section X — Purchasing Policy. In the event of a conflict, Community Development Block Grant (CDBG) purchasing policies shall take precedent. 5. All residential properties are eligible for acquisition. Examples include, but are not limited to, single - family residential dwelling units, multi- family residential dwelling units and — residential condominium units. 6. Acquired property is subject to the minimum affordability period of the federal HOME Investment Partnership Program. _. Dage 3 of 15 Packet Page -2203- 7/26/2011 Item 16.D.16. C. Identifying Property Residential properties shall be targeted in the following three geographic areas: East Naples (Zip Code 34112), Golden Gate City (Zip Code 34116) and Golden Gate Estates (Zip Code 34120). Collier County will seek to acquire residential properties suitable for resale to qualifying households, as well as residential properties suitable for rental to qualifying households. The Department of Housing and Human Services will partner with Real Property Management when identifying properties to purchase. When identifying properties, Collier County may desire to acquire residential properties that possess the following characteristics: • Single- family dwelling units • Multi - family dwelling units • Requiring minimal structure rehabilitation • Incorporated green building practices _ Housing and Human Services, in partnership with Real Property Management, will work directly with banks and other lenders, foreclosure servicers, realtors, or any other party with access to foreclosed property of interest to Collier County. However, Agreements for Sale and Purchase for the acquisition of property may only be made with the banks or other lenders holding title to the property. All proposed acquisitions must be approved by the Director of Housing and Human Services, or his /her designee, priorto entering into a purchase contract. Acquisition —24 CFR 570.201(a) • Uniform Relocation Act -49 CFR 24.103 • Property Location — Section 2301(c)(2) of HERA • Program Income -24 CFR 570.500(a) • Environmental Reviews -24 CFR part 58 _ • Resale of Property — Section 2301(d)(3) of HERA • Affordability Period — 24 CFR 92.252(a), (c), (e) and (f), and 9Z.254 Ill. REHABILITATION OBJECTIVES AND POLICIES A. Objectives) Improve permanent residential structures that will be occupied by a household whose income is at or below 120 percent of area median income. B. Rehabilitation Policies 1. All rehabilitation work must conform to current Florida Building Code requirements, as well as Environmental Health & Safety requirements. 2. All purchasing for services and goods, including capital equipment, shall be made by purchase order or by a written contract and in conformity with the procedures prescribed herein as Section X — Purchasing Policy. 3. Once complete, all rehabilitated properties must meet HUD Section 8 Minimum Housing Quality Standards and applicable Florida Building Codes. Page 4 of 15 Packet Page -2204- 7/26/2011 Item 16.D.16. - 4. Eligible rehabilitation activities shall be listed and documented by a Bid Specification Report prepared by a Rehabilitation Specialist. The Bid Specification Report will serve as a cost estimate for the work plan. S. Any change(s) to the scope of the rehabilitation activities and /or cost of rehabilitation will be in accordance with the provisions outlined in the Collier County Purchasing Policy as relates to change orders. 6. HERA defines rehabilitation to include, but not limited to, improvements to increase the energy efficiency or conservation of such homes and properties, to provide renewable energy source or sources for such homes and properties. Furthermore, Collier County desires to harden the homes against the threat of hurricane damage. 7. HUD strongly encourages Collier County to use NSP funds not only to stabilize neighborhoods in the short-term, but to strategically incorporate modern, green building and energy- efficiency improvements to provide for long -term affordability and increased sustainabdity and attractiveness of housing and neighborhoods. 8. Rehabilitated property is subject to the minimum affordability period of the federal HOME Investment Partnership Program, C Rehabilitation Regulations • Rehabilitation = 24 CFR 570.202 Property Location — Section 2301(c)(2) of HERA • Program income— 24 CFR 570.500(a) • Environmental Reviews — 24 CPR part 58 • Affordability Period -24 CFR 92.252(a), (c), (e) and (f), and 92.254 _ • 2005 Environmental Health & Safety • 2004 Florida Building Code (includes Energy Efficient Code) • 2004 Florida Building Code /Fuel Gas • 2004 Florida Building Code /Mechanical • 2004 Florida Building Code /Plumbing • 2004 Florida Building Code /Americans with Disabilities _ • 2005 National Electric Code • 2002 -01 Building Construction Administrative Code IV. DIRECT ASSISTANCE OBIECTIVES AND POLICIES A. b'ectiv _ Provide permanent residential structures that will be occupied by a household whose income is at or below 120 percent of area median income. B. Direct Assistance Policies _. All households assisted must have income at or below 120 percent of area median income. ® 2. All households must be qualified by the Department of Housing and Human Services prior to entering into a purchase agreement. 3. The head of households) must be a U.S. citizen(s) or permanent resident alien(s). 4. Applicants will procure a fixed -rate mortgage through the Collier County Loan Consortium, local banks, FHA or USDA. Restrictions on the features of the fixed -rate mortgage are contained in the application package. 5. All applicants must receive at least eight (8) hours of homebuyer education from a HUD certified counselor. Page 5 of 15 Packet Page 2205 �' _ 7/26/2011 Item 16.D.16. 6. The average purchase price for the sum of all properties acquired shall be discounted at least fifteen (15) percent from the current market appraised value. The minimum discount is five (5) percent from the current market appraised value. 7. The current market appraisal will be made in conformity with the requirements of the URA at 49 CFR 24.103 and completed within sixty (60) days prior to an offerto purchase or closing transaction. 8. All residential properties acquired must have been foreclosed, vacant for at least ninety (90) days and on the lenders list of current inventory. 9. All residential properties are eligible for direct assistance. Examples include, but are not limited to, single - family residential dwelling units, multi - family residential dwelling units and residential condominium units. 10. The interest rate on Direct Assistance Deferred Payment Loans (DPL) will be zero (0) percent. 11. The DPL must be repaid when the assisted property is sold, refinanced, is no longer the homesteaded residence or is operated for an activity deemed ineligible for assistance under NSP guidelines. 12. The Direct Assistance DPL shall be secured through use of a Promissory Note and Mortgage. 13. The assisted property is subject to the minimum affordability period of the federal HOME Investment Partnership Program. 14. All acquired property transaction must be in conformity with the Uniform Relocation Act. 15. All direct assistance activities will be made in conformity with Community Development . Block Grant (CDBG) down payment assistance policies. ° 16. All properties receiving NSP Direct Assistance must be, and remain, the homesteaded property of the owner. C. Direct Assistance Regulations • Direct Assistance — 24 CFR 570.201(n) • Uniform Relocation Act -49 CFR 24.103 • Property Location— Section 2301(c)(2) of HERA • Program Income —24 CFR 570.500(a) • Environmental Reviews— 24 CFR part 58 ° • Affordability Period —24 CFR 92.252(a), (c), (e) and (f), and 92.254 • Residency — HUD Handbook 4350.3 • Income Guidelines — Section 2301(f)(3)(A) of HERA A. Obiective(s) ° Eliminate blighted and unsafe residential structures through clearance, demolition and removal of foreclosed buildings and improvements. B. Demolition Policies 1. Structures on foreclosed properties that are not economically feasible to rehabilitate, pose a health or safety threat, or are contributing to community blight may be demolished. Note that only blighted structures are eligible for demolition. 2. Demolished properties may be placed in a land bank, according to HERA guidelines, may be redeveloped, or may be transferred to a local non -profit provider of affordable housing. Page 6 of 15 Packet Page -2206- �s 7/26/2011 Item 16.D.16. 3. Demolition will be considered if the cost to rehabilitate the acquired property is fiscally not feasible. Note that only blighted structures are eligible for demolition. 4. All residential structures acquired must have been foreclosed upon, vacant for at least ninety (90) days and on the lenders list of current inventory. 5, All proposed demolition must be approved by the Director of Housing and Human ° Services, or his /her designee, prior to commencing work. 6. Housing and Human Services does not intend demolition to be a major NSP activity. '.. Rather, the Department reserves the right to demolish structures on acquired property should it be deemed more fiscally responsible and said structures are blighted. 7. Demolished property is subject to the minimum affordability period of the federal HOME Investment Partnership Program. C. Demolition Regulations • Demolition -24 CPR 570.201(d) Property Location — Section 2301(c)(2) of HERA Program Income — 24 CPR 570.500(a) • Environmental Reviews -24 CPR part 58 Affordability Period — 24 CPR 92.252(a), (c), (e) and (0, and 92.254 Land Banking — 24 CPR 570201(a) and (b) • Resale of Property — Section 2301(d)(3) of HERA • Uniform Relocation Act -49 CPR 24.103 V:. LAND BANK DBrEC71VES AND POLICIES A. Obiectivefsl Establish a land bank for acquired foreclosed homes for the purpose of stabilizing neighborhoods and ® encouraging re -use or redevelopment of urban property. B. Land Bank PQRcies ° 1. All properties acquired for the local land bank must have beer foreclosed upon, vacant for at least ninety (90) days and on the lenders list of current inventory. 2. The average purchase price for all properties acquired shall be discounted at least fifteen (15) percent from the current market appraised value. 3. The current market appraisal will be made in conformity with the requirements of the _ URA at 49 CPR 24.103 and completed within sixty (60) days prior to an offer to purchase or closing transaction. 4. 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 in accordance with HERA requirements. 5. Acquired property is subject to the minimum affordability period of the federal HOME Investment Partnership Program. 6. Property must be granted and maintain a homestead exemption. C. Lank BankRggulatiors • Land Bank — 24 CFR 570.201(a) and (b) • Property Location — Section 2301(c)(2) of HERA • Program Income — 24 CPR 570.500(a) • Environmental Reviews — 24 CPR part 58 • Affordability Period — 24 CPR 92.252(a), (c), (e) and (fj, and 92.254 Page 7 of 15 Packet Page -2207- 7/26/2011 Item 16.D.16. • Uniform Relocation Act -49 CFR 24.103 V1 1. TRANSFER PROPERTY OSIECTIVES AND POLICIES Provide permanent residential structures that will be occupied by a household whose income is at or below 120 percent of area median income. B. TransferPropezUPolicies 1. Residential properties acquired under the Collier County NSP program must be sold, rented or benefit households whose income is at or below 120 percent of area median income. 2. Twenty -five (25) percent of the Collier County NSP allocation must assist households whose income is at or below 50 percent area median income. 3. When an abandoned or foreclosed -upon home or residential property is purchased, redeveloped or otherwise sold to an individual as a primary residence, then such sale shall be in an amount equal to or less than the cost to acquire and redevelop or rehabilitate such home or property up to a decent, safe, and habitable condition. Sales and closing costs are eligible NSP redevelopment or rehabilitation costs. Note that the maximum sales price for a property is determined by aggregating all costs of acquisition, rehabilitation, and redevelopment (including related activity delivery costs, which generally may include, among other items, costs related to the sale of the property). HUD will not consider the costs of boarding up, lawn mowing, or simply maintaining the property in a static condition to be redevelopment or rehabilitation costs. 4. When an acquired home or residential property is rented, the maximum affordable rent shall not exceed the Fair Market Rents (FMR) as published annually by HUD for the Naples — Marco Island MSA. 5. Acquired property is subject to the minimum affordability period of the federal HOME Investment Partnership Program. C. Trans &r ProneLV Regulation • Acquisition — 24 CFR 570.201(a) • Property Location — Section 2301(c)(2) of HERA • Program Income — 24 CFR 570.500(a) • Affordability Period — 24 CFR 92.252(a), (c), (e) and (f), and 92.254 • Uniform Relocation Act —49 CFR 24.103 ^ • Resale of Property — Section 2301(d)(3) of HERA • Residency— HUD Handbook 4350.3 • Income Guidelines— Section 2301(f)(3)(A) of HERA ® V111. ACTIVITY PROCEDURES A General i. The Collier County Board of County Commissioners approves the HUD One Year Action Plan and delegates administration of the NSP grant to the Director of Housing and Human Services. ii. The Director of Housing and Human Services has grant administration responsibility. Page 8 of 15 Packet Page -2208- 7126/2011 Item 16.D.16. iii. Current job descriptions fo� all actively involved employees will be maintained by the Department of Human Resources. iv. Financial duties and responsibilities must be separated so that no one employee has sole control ove, cash receipts, disbursements, payroll, reconciliation, etc. V. All activities must be in compliance with HERA, NSP and HUD CDBG regulations. B, Acquisition g2f Rea] Prime ty 1. The Director of Housing and Human Services, or his /her designee, will work with Real Property Management to identify abandoned and foreclosed properties for sale. Housing and Human Services may partner with Information Technology to produce GIS mapping of foreclosed properties. Additionally, Housing and Human Services may partner with Code Enforcement to develop a list of bank contacts for the acquisition of foreclosed properties. ii. As potential properties are identified, Housing and Human Services personnel, with the assistance of Real Property Management representatives, will conduct and initial evaluation of each property to determine suitability for acquisition and rehabilitation. iii. Real Property Management will conduct or procure an appraisal of each property deemed suitable within sixty (60) days prior to making an offer to purchase. Letter of federal funding use issued to bank. V. Appraisals will rote that the property has been vacant for at least ninety (90) days in order to conform and comply with the requirements of the Uniform Relocation Act (URA). V. Following initial evaluation and appraisal, proposed offers to purchase will be prepared by Housing and Human Services and Real Property Management personnel. All offers to _ purchase must be approved by the Director of Housing and Human Services, vi. Real Property Management will negotiate with foreclosing lenders to obtain acceptance of approved offers to purchase, and will prepare Agreements for Sale and Purchase. Letters of federal funding use will be issued to lenders as appropriate. vii. Agreements for Sale and Purchase will contain appropriate contingencies regarding marketable title, environmental review and other due diligence items, and must be approved by the County Attorney's office for form and legal sufficiency. viii. Upon approval of Agreements for Sale and Purchase, Real Property Management will obtain proper execution of the Agreements, ix. Real Property Management will conduct all due diligence review, including obtaining evidence of clear title from an approved vendor, and will coordinate with Housing and Human Services, Risk Management, Code Enforcement, and other departments, agencies and organizations as appropriate. X. Housing and Human Services will perform Environmental Review as part of the due diligence process. xi. Real Property Management will prepare and /or review all documentation required for the — closing of acquisitions, and will coordinate with the County Attorney's Office to obtain approval of all documents for form and legal sufficiency. Real Property Management will obtain proper execution of all documents. xi. Real Property Management will coordinate with Finance to obtain funds necessary for dosing. xiii. Real Property Management will perform final examinations of title and conduct the closing of all acquisitions following all appropriate closing procedures, and will supervise the recording of acquisition conveyances and all documents necessary for title clearance in the Public Records of Collier County, Florida. xiv. Housing and Human Services to "drawdown" funds from HUD only after eligible funds have been expended. Page 9 of 15 ;u. Packet Page -2209 - 7/26/2011 Item 16.D.16. xv. Housing and Human Services to update quarterly insurance spreadsheet with newly acquired property information. ® xvi. All County departments assisting Housing and Human Services will use the inter - department billing system to receive payment for service(s) rendered. xvii. Acquisition purchase prices shall not exceed One Hundred Fifty and 00 /100 Dollars ($150.000.00) per residential unit. Any single acquisition purchase price in excess of the aforementioned limit must be specifically approved by the Collier County Board of County Commissioners. -P xviii. The Chairman of the Board of County Commissioners is authorized to execute Agreements for Sale and Purchase for the acquisition of residential properties at purchase prices in accordance with the Collier County NSP Administrative Plan, based upon appraised values, and as approved by the County Attorney's Office, through February 13, 2013. C. Rehabilitation i. Rehabilitation Specialist to perform site inspection and prepare Bid Specification Form. ii. Rehabilitation Specialist to ensure contractor access to property, iii. Housing and Human Services to work with Purchasing Department to procure bids for rehabilitation projects. vi. Director of Housing and Human Services and Purchasing Department to approve winning bid for projects. vii. Rehabilitation Specialist to notify Collier County Sherriffs Office of newly acquired residential properties. ,. viii. Grant Support Specialist to transfer utilities to Collier County. ix. Grant Support Specialist to notify property maintenance vendor of newly acquired residential properties and add properties to Community Watch Program. X. Rehabilitation costs shall not exceed Fifty Thousand and 00 /100 Dollars ($50.000.00) per residential unit. The Department of Housing and Human Services shall have authority to enter into contracts for rehabilitation not to exceed fifty- thousand dollars ($50,000.00). The Purchasing Department shall have authority to enter into contracts for rehabilitation - not to exceed two hundred thousand dollars ($200,000.00). Any rehabilitation expenditures in excess of the aforementioned limits per unit must be specifically approved by the Collier County Board of County Commissioners. xi. Payment for eligible activities will be governed by Section X - Purchasing Policy. D. Direct Assistance I. Housing Outreach Coordinator to qualify clients interested in Direct Assistance. ii. Housing and Human Services to use department approved checklist to ensure NSP property requirements are satisfied: letter of federal funding provided to seller, appraisal within sixty (60) days of offer to purchase or closing transaction, property foreclosed upon and vacant for ninety (90) days. iii. Housing Manager to approve all requests as eligible. ® iv. SHIP Loan Processor to prepare request for direct payment. Check to be issued jointly to closing agent and client(s). V. All households assisted not to exceed 120 percent Area Median Income (AMI). vi. All assisted households to complete at least eight (8) hours of homebuyer education. vii. Direct Assistance shall not exceed =iffy Thousand and 00 /100 Dollars ($50 ,000.00). The Department of Housing and Human Services shall have authority to enter into contracts, agreements and security instruments for direct assistance not to exceed fifty- thousand dollars ($50,000.00). Any direct assistance amounts in excess of the aforementioned Page 10 of 15 Packet Page -2210- 7/26/2011 Item 16.D.16. limits per unit must be specifically approved by the Collier County Board of County Commissioners. viii. Direct Assistance may not exceed fifty (50) percent of the required down payment. E. Demolition i. Director of Housing and Human Services to approve all demolition activities. ii. Demolition will be considered if the cost to rehabilitate the acquired property is fiscally not feasible. Note that only blighted structures are eligible for demolition. — iii. Estimated cost to rehabilitate will be determined by a Bid Specification Form completed by a Rehabilitation Specialist. iv. Following demolition, property may be either placed in a Collier County Land Bank for up to ten (10) years or ownership may be transferred to a local non - profit provider of affordable housing. V. Demolition shall not exceed Twenty Five Thousand and 00 /100 Dollars ($25,000.00) per residential structure. The Department of Housing and Human Services shall have authority to enter into contracts for demolition not to exceed twenty-five thousand dollars ($25,000.00). Any demolition expenditure in excess of the aforementioned limits per structure must be specifically approved by the Collier County Board of County Commissioners. vi. Payment for eligible activities will be governed by Section X — Purchasing Policy, F. Land Banking i. Director of Housing and Human Services to approve all transfers of Property to the Collier County Land Bank. ii. Housing and Human Services to partner with Real Property Management to track, report and monitor land bank properties. iii. Housing and Human Services to contract with vendor to maintain property (i.e. lawn maintenance, etc.). V. Property may be held in land bank no longer than ten (10) years from date of acquisition by Collier County. G. Transfer of PrQpgrtL 1. Purchasers of NSP assisted residential dwelling units must obtain a first mortgage from a lender on the Housing and Human Services' approved lender list. ii. Proceeds from the sale of properties is considered program income as described in Section XIII — Program Income of this Administrative Plan. ill. Purchasers of NSP assisted residential dwelling units must have a household income of 120 percent of AMI or less. iv. If property is transferred to a non - profit provider of affordable housing and subsequently rented, the maximum affordable rent shall not exceed the Fair Market Rents (FMR) as published annually by HUD for the Naples -Marco Island MSA. Any revenue in excess of allowable costs must be returned to Collier County as program income. .r V. Purchasers are responsible for all closing costs associated with the transfer of property. vi. The maximum sales price for a property is determined by aggregating all costs of acquisition, rehabilitation, and redevelopment (including related activity delivery costs, which generally may include, among other items, costs related to the sale of the property). Page 11 of 15 Packet Page -2211- 7/26/2011 Item 16.D.16. - ; A. Genera! i. Director of Housing and Human Services has responsibility for management and coordination of all aspects of the Collier County NSP Program. ii. Financial duties and responsibilities must be separated so that no one employee has sole control over cash receipts, disbursements, payroll, reconciliation, etc. iii. HUD has granted permission for grantees to incur pre -award costs effective September 30, 2008. iv. The NSP Program allows ten (10) percent of the gross grant amount plus ten (10) percent of program income to be used for general administration and planning costs as defined at 24 CFR 570.205 and 206. I. Rehabilitation Specialist will perform inspection of all properties considered for acquisition by Housing and Human Services. ii. Inspection will be performed using the HUD Housing Quality Standard (HQS) Inspection Form. iii. Housing and Human Services may contract with vendor to evaluate mold mitigation needs _ on acquired properties. iv. Rehabilitation Specialist may perform periodic inspections throughout the rehabilitation period. a V. Inspection and approval of completed work must be completed by Housing and Human Services prior to issuance of partial or final payment. Vi. Inspection will ensure compliance with lead -based paint procedures. vii. Housing and Human Services will ensure all code enforcement violations are remedied prior to transferring ownership. viii. At a minimum, the Department of Housing and Human Services intends to administer all NSP related activities during the initial eighteen (18) months under County control and operation. MEMOT an i , t i. All properties proposed for acquisition must comply with the environmental review requirements pursuant to 24 CFR part 58. C. Chance Orders i. All changes to contracts subject to the provisions of the Collier County Purchasing Policy shall be processed in accordance with that policy and the County's Procurement Administrative Procedures. ii. The Purchasing Department may approve administratively a contract extension up to six (6) months from date of original contract or agreement execution. iii. Extensions greaterthan six (6) months time must be approved by the Collier County Board of County Commissioners, D. Paymen 1. Housing and Human Services shall present the Clerk's Finance Department with Request for Payment packages and /or process requests for payment against established Purchase Orders. ii. Progress payments, as approved by Housing and Human Services, may be made directly to a vendor or organization for any NSP eligible activity. -' iii. Payment for eligible work tasks and /or activities may be made directly to the provider of the service(s), as approved by Housing and Human Services. Page 12 of 15 Packet Page -2212- 7/26/2011 Item 16.D.16. — iv. Eligible activities are those outlined in the US Department of Housing and Urban Development Docket No. FR- 5255 -N -01. V. Any performance milestones are in effect for program monitoring requirements only, and as such, are used by Housing and Human Services, HUD and other grantor agencies as general target goals rather than strict Derformance requirements. E. Final Inspection i. Upon completion of all rehabilitation work, Rehabilitation Specialist will issue a Certificate of Final Inspection. ii. Contractors will provide all requested and required release of liens, certificate of occupancy and any other construction related close -out documents. F. Monitoring County Owned Properties i. Once title is transferred to Collier County, properties will be placed on the Community Watch Program list. ii. Housing and Human Services will work with Purchasing to properly procure home maintenance services for all County owned properties. Services may include, but not be limited to, lawn care maintenance, routine site inspections, lock changing and post - construction cleanup. iii. Collier County Sheriffs office will be notified of all properties currently owned by Collier County. IV, Housing and Human Services' Rehabilitation Specialist will make regular site visits to monitor property conditions and ensure contracted work is on schedule and being completed as planned. G. Transfer of Property i. Housing and Human Services will maintain a list of completed homes available for — sale /rental and a list of homes currently under construction with an estimated availability date. ii. Persons wishing to purchase an NSP assisted home will be served on a first- come -first served basis once eligibility and readiness to purchase has been secured. iii. Purchasers shall be responsible for all closing costs involved in property transfer. IV. To facilitate the sale of an NSP assisted property, Collier County and purchaser will enter into a standard Agreement for Sale and Purchase through Real Property Management. V. Purchasers must provide at least a One Thousand and 00 /100 Dollar ($1.000.00) deposit which will be applied to the closing costs. vi. All interested purchasers to be. pre - qualified by Housing and Human Services. X. PURCHASING POLICI' Collier County's Department of Housing and Human Services will employ the following Purchasing Policy for management of the NSP Program: ._ i. Acquisition of Real Property a. Real Property Management shall have authority to negotiate the purchase of real property eligible for the Collier County NSP Program. b. Real Property Management shall negotiate with foreclosing lenders to obtain acceptance of approved offers to purchase, and will prepare Agreements for Sale and Purchase. C. Agreements for Sale and Purchase will contain appropriate contingencies regarding marketable title, environmental review, and other due Page 13 of 15 Packet Page -2213- 7/26/2011 Item 16.D.16. diligence items, and must be approved by the County Attorney's Office for form and legal sufficiency. d. Acquisition purchase prices shall not exceed One Hundred Fifty Thousand and 00 /100 Dollars ($150.000.00) per residential unit. Any single acquisition purchase price in excess of the aforementioned limit must be specifically approved by the Collier County Board of County Commissioners. e. The Chairman of the Board of County Commissioner is authorized to execute Agreements for Sale and Purchase for the acquisition of residential properties at purchase prices in accordable with the Collier County NSP Administrative Plan, based upon appraised values, and as approved by the County Attorney's Office, through February 13, 2013. K. Other Purchases (excluding Real Property) a. All purchases, excluding real property, under the NSP Program shall be procured in accordable with the County's Purchase Policy and the County's Procurement Administration Procedures. _ b. All purchases, excluding real property, of Two Hundred Thousand and 00/100 Dollars ($200.000.00) or less under section X(ii)(a) may be awarded by the Purchasing/General Services Director. C. All purchases, excluding real property, exceeding Two Hundred Thousand and 00 /100 Dollars ($200,000.00) included under section X(ii)la) shall be awarded by the Board of County Commissioners. XI. MARKETING PROGRAM Collier County's Department of Housing and Human Services will actively market the Neighborhood Stabilization Program (NSP). The purpose of the marketing program is to raise community awareness of the program's availability, locate qualified and interested residents in the program, inform local non -profit providers of affordable housing about potential program opportunities and involve our local contractors and tradesmen.. ® The Collier County NSP program will seek to increase the availability of affordable housing while also stimulating local businesses. All vendors interested in participating in the program will be encouraged to register with the Collier County Purchasing Department thereby allowing the dissemination of requests for services. The Department of Housing and Human Service may market the program through newspaper advertisements, Collier TV, local fairs and scheduled events. Housing and Human Services will work with the Public Service Public Information Officer, as well as the Communication and Customer Relations Department. The Director of Housing and Human Services, or designee, will work with the Public Services Public Information Officer to approve all marketing activities and expenses in advance. XI I. REPORTING ® The U.S. Department of Housing and Urban Development (HUD) requires regular reporting on each NSP grant through the Disaster Recovery Grant Reporting (DRGR) system. For NSP only, HUD is waiving the annual reporting requirements of the consolidated plan to allow for collection of more regular information on various aspects of the uses of funds and o` the activities funded with NSP dollars. To collect these data elements and to meet reporting requirements, HUD is requiring Collier County to report on its NSP funds using the online DRGR system, a streamlined, Internet -based format. The NSP program requires quarterly reports. Such reports are due not later than thirty (30) days following the end of each calendar quarter Page 14 of 15 Packet Page -2214- 7/26/2011 Item 16.D.16. with the first such report due not later than July 31, 2009, for the quarter ending June 30, 2009. Each quarterly report must be posted on Collier County's website so that the public may have ready access to the information, to addition to this ouarterly performance reporting, Collier County will report monthly on its NSP obligations and expenditures beginning thirty (30) days after the end of the 15t' month following receipt of funds, and continuing until reported total obligations are equal to or great than Collier County's total NSP award. For more information please refer to the October 6, 2008 Federal Register Notice (73 FR 58341, Section 0, Reporting). X111. PROGRAM INCOME Revenue received by Collier County (as defined at 24 CFR 570.500(c)) that is directly generated from the use of CDBG funds (which term includes NSP grant funds) constitutes program income. Additionally, HUD requires any revenue from the sale, rental, redevelopment, rehabilitation or any other eligible use of NSP funds to be provided — to and used by Collier County. This includes revenue received by a private individual or other entity that is not a subrecipient. Program income received before July 30, 2013 may be retained by Collier County and treated as additional CDBG funds and used in accordance with NSP regulations. Program income received on or after July 30, 2013 must be returned to the U.S. Treasury. Substantially all program income must be disbursed for eligible NSP activities before additional cash withdrawals are made from the U.S. Treasury. HUD permits Collier County's Department of Housing and Human Services to use ten (10) percent of the NSP grant and ten (10) percent of program income earned for general administration and planning activities as those are defined at 24 CFR 570.205 and 206. The ten (10) percent limitation applies to the grant as a whole. The Collier County Neighborhood Stabilization Program Administrative Plan is adopted this 24" day of March, 2D09. ATTEST: BOARD OF COUNTY COMMISSIONERS DWIG�Ti BROCK CiF)iV COLLIER COUNTY, FLORIDA n` r" r .. — 6Y' BY: 24 2009 TY CLERK DON A FIALA, CHAIRMAN APPROVED AS TO FORM AND LEGAL SUFFICIENCY '1 BY: COLLEEN GR ENE ASSISTANT COUNTY ATTORNEY Page 15 of 15 Packet Page -2215-