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Agenda 11/13/2018 Item #16D1011/13/2018 EXECUTIVE SUMMARY Recommendation to approve a mortgage satisfaction for the State Housing Initiative Partnership (SHIP) and Community Development Block Grant (CDBG) programs in the amount of $ 45,787 and release of the Subsidy Retention Agreement and authorize a Budget Amendment to recognize CDBG Program income in the amount of $35,000. OBJECTIVE: To support the CDBG and SHIP program strategies through CDBG and SHIP funded mortgages and subsidy retention agreement (SRA) previously assigned to Collier County. CONSIDERATIONS: On September 23, 2009, the Board of County Commissioners (Board) approved a subrecipient agreement with Housing Opportunities Made for Everyone (H.O.M.E.). The subrecipient agreement granted H.O.M.E Community Development Block Grant funds to acquire, rehabilitate, and sell homes to low income persons. Through the arrangement, assistance was made available to qualified individuals to purchase housing units through the CDBG Program under 24 CFR 570.200. H.O.M.E. used the CDBG funds to purchase homes. They proceeded to renovate and sell the homes to income qualified persons. The homes purchased initially with CDBG funds were also provided purchase assistance under the SHIP Program. Consequently, H.O.M.E. provided a second (for SHIP funds) and third (for CDBG funds) mortgage for each property sold as well as executing a Subsidy Retention Agreement (SRA) for each property. H.O.M.E. was dissolved in 2010 and the mortgages, notes and retention agreements with the terms and conditions chosen by H.O.M.E. were assigned to Collier County, with no change in terms. A qualified buyer, Mr. Jason Gore, approached Community and Human Services (CHS) because he is looking to sell his home at $ 248,000. His home has a SHIP mortgage, CDBG mortgage and a subsidy retention agreement. The following table provides details regarding the associated mortgages that will be repaid in full, pending approval of this action by the Board. As such, satisfactions of mortgages are proposed. It is also recommended that the SRA be released for Mr. Gore, but that the sales price be at a reasonable price per the federal HOME program Homeownership Sales Price Limits, in accordance with 24 CFR 93.305(a), rather than at the required Consumer Price Index (CPI). The proposed sale/purchase price of this property is still below the program sales price limit of $ 263,000, so this condition is met. File # Name Security Instrument Mortgage Amount Payoff Amount Public Record, if applicable 09 Jason Gore SHIP Mortgage $16,173** $10,787* 4504/759 09 Jason Gore CDBG Mortgage $35,000 $35,000 N/A Jason Gore Subsidy Retention 4504/777 H.O.M.E.to County Assignment of 3rd Mortgage SRA 4662/1071 TOTAL $51,173 $45,787 *SHIP Program Income will be recognized at the end of Quarter 1 (December 31, 2018). ** SHIP promissory note contained a pro rated repayment term of 66.7% of the original loan amount based on number of days title held by homeowner. By approving this item, staff will take the following actions for Mr. Gore’s property: a) Execute the proposed satisfaction of the SHIP Mortgage and record the same upon 16.D.10 Packet Pg. 1740 11/13/2018 receipt of payment in the amount of $10,787. b) Execute the proposed satisfaction of the CDBG Mortgage and record the same upon receipt of payment in the amount of $35,000. c) Record the release of the subsidy retention agreement and right of first refusal. This recognizes payment of the $35,000, waives the requirement to sell to a qualified buyer at a price adjusted by CPI, but imposes a requirement that the sales price be under the Homeownership Sales Price Limits for Collier County published by HUD. Once documents are fully executed they shall be recorded in the Official Records of Collier County, Florida. FISCAL IMPACT: The repaid amount of $10,787 satisfies the SHIP mortgage amount and the repaid amount of $35,000 satisfies the CDBG mortgage amount. These repayments are considered program income. $10,787 will be deposited in SHIP Grant Fund (791), Project 33569. $35,000 will be deposited in the Housing Grants Fund (705), Project 33580. These funds may be reused for eligible SHIP/CDBG program activities. A Budget Amendment is necessary to recognize the $35,000 in CDBG Program income in the Housing Grant Fund (705), Project 33580. Two (2) $10 recording fees will be paid by the homeowners. GROWTH MANAGEMENT IMPACT: There is no Growth Management impact. LEGAL CONSIDERATIONS: This Item is approved for form and legality and requires a majority vote for Board approval. -JAB RECOMMENDATION: Approve a mortgage satisfaction for the State Housing Initiative Partnership (SHIP) and Community Development Block Grant (CDBG) programs in the amount of $ 45,787 and release of the Subsidy Retention Agreement and authorize a Budget Amendment to recognize CDBG Program income in the amount of $35,000. Prepared By: Tom Calderon, Grant Coordinator, Community & Human Services Division ATTACHMENT(S) 1. Original SHIP Mortgage Gore (PDF) 2. Original CDBG Mortgage-Gore (PDF) 3. Subsidy Retention Gore (PDF) 4. Satisfaction of Mortgage - SHIP _ Gore (PDF) 5. Satisfaction of Mortgage - CDBG- Gore (PDF) 6. Subsidy Retention and Right of First Refusal- Gore (PDF) 16.D.10 Packet Pg. 1741 11/13/2018 COLLIER COUNTY Board of County Commissioners Item Number: 16.D.10 Doc ID: 7118 Item Summary: Recommendation to approve a mortgage satisfaction for the State Housing Initiative Partnership (SHIP) and Community Development Block Grant (CDBG) programs in the amount of $ 45,787 and release of the Subsidy Retention and authorize a Budget Amendment to recognize CDBG Program income in the amount of $35,000. Meeting Date: 11/13/2018 Prepared by: Title: – Community & Human Services Name: Tomas Calderon 10/19/2018 2:38 PM Submitted by: Title: Manager - Federal/State Grants Operation – Community & Human Services Name: Kristi Sonntag 10/19/2018 2:38 PM Approved By: Review: Community & Human Services Kristi Sonntag CHS Review Completed 10/25/2018 9:01 AM Community & Human Services Leslie Davis Additional Reviewer Completed 10/25/2018 11:50 AM Community & Human Services Jose Alvarado Additional Reviewer Completed 10/25/2018 11:58 AM Community & Human Services Maggie Lopez Additional Reviewer Completed 10/25/2018 1:08 PM Public Services Department Kimberley Grant Level 1 Reviewer Completed 10/25/2018 5:34 PM Public Services Department Todd Henry Level 1 Division Reviewer Completed 10/26/2018 10:53 AM Grants Erica Robinson Level 2 Grants Review Completed 10/26/2018 4:55 PM County Attorney's Office Jennifer Belpedio Level 2 Attorney of Record Review Completed 10/29/2018 10:13 AM Public Services Department Steve Carnell Level 2 Division Administrator Review Completed 10/29/2018 4:22 PM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 10/29/2018 4:50 PM County Attorney's Office Emily Pepin CAO Preview Completed 10/30/2018 8:36 AM Grants Therese Stanley Additional Reviewer Completed 10/30/2018 10:25 AM Budget and Management Office Ed Finn Additional Reviewer Completed 10/31/2018 2:41 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 11/02/2018 11:00 AM County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 11/06/2018 9:21 AM Board of County Commissioners MaryJo Brock Meeting Pending 11/13/2018 9:00 AM 16.D.10 Packet Pg. 1742 16.D.10.a Packet Pg. 1743 Attachment: Original SHIP Mortgage Gore (7118 : Mortgage Modifications) 16.D.10.a Packet Pg. 1744 Attachment: Original SHIP Mortgage Gore (7118 : Mortgage Modifications) 16.D.10.a Packet Pg. 1745 Attachment: Original SHIP Mortgage Gore (7118 : Mortgage Modifications) 16.D.10.a Packet Pg. 1746 Attachment: Original SHIP Mortgage Gore (7118 : Mortgage Modifications) 16.D.10.a Packet Pg. 1747 Attachment: Original SHIP Mortgage Gore (7118 : Mortgage Modifications) 16.D.10.b Packet Pg. 1748 Attachment: Original CDBG Mortgage-Gore (7118 : Mortgage Modifications) 16.D.10.b Packet Pg. 1749 Attachment: Original CDBG Mortgage-Gore (7118 : Mortgage Modifications) 16.D.10.b Packet Pg. 1750 Attachment: Original CDBG Mortgage-Gore (7118 : Mortgage Modifications) 16.D.10.b Packet Pg. 1751 Attachment: Original CDBG Mortgage-Gore (7118 : Mortgage Modifications) 16.D.10.b Packet Pg. 1752 Attachment: Original CDBG Mortgage-Gore (7118 : Mortgage Modifications) 16.D.10.b Packet Pg. 1753 Attachment: Original CDBG Mortgage-Gore (7118 : Mortgage Modifications) 16.D.10.b Packet Pg. 1754 Attachment: Original CDBG Mortgage-Gore (7118 : Mortgage Modifications) 16.D.10.b Packet Pg. 1755 Attachment: Original CDBG Mortgage-Gore (7118 : Mortgage Modifications) 16.D.10.b Packet Pg. 1756 Attachment: Original CDBG Mortgage-Gore (7118 : Mortgage Modifications) 16.D.10.b Packet Pg. 1757 Attachment: Original CDBG Mortgage-Gore (7118 : Mortgage Modifications) 16.D.10.b Packet Pg. 1758 Attachment: Original CDBG Mortgage-Gore (7118 : Mortgage Modifications) 16.D.10.b Packet Pg. 1759 Attachment: Original CDBG Mortgage-Gore (7118 : Mortgage Modifications) 16.D.10.b Packet Pg. 1760 Attachment: Original CDBG Mortgage-Gore (7118 : Mortgage Modifications) 16.D.10.c Packet Pg. 1761 Attachment: Subsidy Retention Gore (7118 : Mortgage Modifications) 16.D.10.c Packet Pg. 1762 Attachment: Subsidy Retention Gore (7118 : Mortgage Modifications) 16.D.10.c Packet Pg. 1763 Attachment: Subsidy Retention Gore (7118 : Mortgage Modifications) 16.D.10.c Packet Pg. 1764 Attachment: Subsidy Retention Gore (7118 : Mortgage Modifications) 16.D.10.c Packet Pg. 1765 Attachment: Subsidy Retention Gore (7118 : Mortgage Modifications) 16.D.10.c Packet Pg. 1766 Attachment: Subsidy Retention Gore (7118 : Mortgage Modifications) 16.D.10.c Packet Pg. 1767 Attachment: Subsidy Retention Gore (7118 : Mortgage Modifications) 16.D.10.c Packet Pg. 1768 Attachment: Subsidy Retention Gore (7118 : Mortgage Modifications) 16.D.10.c Packet Pg. 1769 Attachment: Subsidy Retention Gore (7118 : Mortgage Modifications) 16.D.10.dPacket Pg. 1770Attachment: Satisfaction of Mortgage - SHIP _ Gore (7118 : Mortgage Modifications) 16.D.10.ePacket Pg. 1771Attachment: Satisfaction of Mortgage - CDBG- Gore (7118 : Mortgage Modifications) 16.D.10.fPacket Pg. 1772Attachment: Subsidy Retention and Right of First Refusal- Gore (7118 : Mortgage Modifications) 16.D.10.fPacket Pg. 1773Attachment: Subsidy Retention and Right of First Refusal- Gore (7118 : Mortgage Modifications) 16.D.10.fPacket Pg. 1774Attachment: Subsidy Retention and Right of First Refusal- Gore (7118 : Mortgage Modifications)