Agenda 03/24/2009 Item #10E
Agenda Item No. 10E
March 24, 2009
Page 1 of 7
EXECUTIVE SUMMARY
Recommendation that the Board of County Commissioners approves, and authorizes the
Chairman to sign an agreement with the U.S. Department of Housing and Urban
Development to accept entitlement funding for the Neighborhood Stabilization Program
in the amount of $7,306,755, and approve a budget amendment to allocate the funding.
OBJECTIVE: That the Board of County Commissioners (Board) approves, and authorizes the
Chairman to sign, the attached U.S. Department of Housing and Urban Development (HUD)
entitlement funding agreement for the Neighborhood Stabilization Program (NSP) for FY 2008-
2009 and approve the necessary budget amendment to authorize expenditures. Acceptance of
this award will provide $7,306,755 in funding for Collier County.
CONSIDERATIONS: On April 22, 2008, the Board adopted Resolution No. 2008-121,
approving the submission of the Collier County annual Action Plan to the U.S. Department of
Housing and Urban Development. The annual Action Plan provided guidance for the
expenditure of $3,089,38 I .00 in federal entitlement funding for FY 2008-2009.
~
On July 30, 2008, President Bush signed into law the Housing and Economic Recovery Act of
2008 (HERA). The Act provides emergency assistance for the redevelopment of abandoned
and foreclosed residential structures. The Secretary of HUD established a formula for the
distribution of the $3.92 billion dollar appropriation. This formula included the number of
foreclosures within the jurisdiction, the risk of increase in foreclosures in the following eighteen
(18) months and the percentage of homes financed with subprime mortgage related instruments.
On September 29, 2008, HUD sent notification that $7,306,755 in NSP funding had been
allocated to Collier County under the NSP Program. Each jurisdiction was tasked with
providing a substantial amendment to their FY 2008-2009 Action Plans to recognize the newly
allocated funding. On November 18,2008, under agenda item 16D3, the Board approved the
substantial amendment which was submitted and accepted by HUD with minor changes.
The substantial amendment contains strategies to use NSP funds for the acquisition,
rehabilitation and resale or rent of foreclosed and abandoned residential structures in Collier
County. Additionally, the amendment provided strategies for purchase assistance for applicants
acquiring bank-owned properties, demolition of blighted structures, new construction and the
opportunity to land bank acquired properties for future redevelopment. The proposed budget is
as follows:
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COLLIER COL'1\'TY NSP Al.LOCA TlO:'\ S 'i.~06.~55.00
Amount by 50%, AlII and Below 51'% 110%A1\II Tot:d br
Artidn' Amount Amount Aetidt,.
Plannin~ aud Admiui.~tnltion $ 730.67500 S \ . S 730.675.00
ACOImtlon nnd R.ehabditatiou cofFor~do~d Pt0p~lie~ for ~~/IIl:' $ 3.980.684.00 $ 796.60400 $ 3.1S4.08f.i.OO $ 3.980.684.00
Ac"'ui~tiOll alld R~habi1itation ofForer:lo"e-d Properties for Remal S 1,745.396.00 S _.__1..:030,3%f!~ S 71 ~ .DOO.OO S 1,/45396.00
Direct Home-buyer A....i:;tanc~ to ACQUIre Foreclosed ?roo~ni" S 400,000.00 $ S '-100000.00 S 400.00000
Demolition of Acnuu-t'd Foredo~ed Propel1l~~ S 100.000.00 S S lOn.OOO.OO S 100,000.00
Land Baukiwz of PrOl;)emt'!. S 350.000.00 S S 350.00000 S 350.000.00
TOTALS S 7,306,-~~.OO S 1.827.000.00 S 4,":49.080.00 S 7,306,755.00
PERCE~TAGE OF TOTAL ALLOCATIO~ 25.00%. 65.00"r.
FISCAL IMPACT: The acceptance of this grant agreement totaling $7,306,755 will allow the
Department of Housing and Human Services to administer, implement and monitor the
Agenda Item NO.1 OE
March 24, 2009
Page 2 of?
strategies detailed in the substantial amendment to the Collier County annual Action Plan
adopted by the Board on November 18,2008. Acceptance of this grant agreement will have no
additional effects on ad valorem or general fund dollars.
GROWTH MANAGEMENT IMP ACT: Acceptance and implementation of this grant
agreement will further the goals, objectives and policies of the Growth Management Plan's
Housing Element.
LEGAL CONSIDERATIONS: This item has been reviewed and approved by the County
Attorney's Office. This item is not quasi judicial, and as such ex parte disclosure is not
required. This item requires majority vote only. This item is legally sufficient for Board action.
-CMG
STAFF RECOMMENDATION: That the Board of County Commissioners approves, and
authorizes the Chairman to sign, the attached U.S. Department of Housing and Urban
Development entitlement funding agreement for the Neighborhood Stabilization Program for
FY 2008-2009 and approve the necessary budget amendment..
PREPARED BY: Marcy Krumbine, Director, Housing and Human Services
..
Agenda Item No. 10E
March 24, 2009
Page 3 of 7
FUNDING APPROVAL AND GRANT AGREEMENT FOR
NEIGHBORHOOD STABILIZATION PROGRAM (NSP) FUNDS
AS AUTHORIZED AND APPROPRIATED UNDER THE
HOUSING AND ECONOMIC RECOVERY ACT OF 2008
(PUBLIC LAW 110-289, JULY 30, 2008)
NSP GRANTEE:
Collier County
NSP GRANT NUMBER:
B.08-UN.12.0003
NSP GRANT AMOUNT:
$7,306,755
NSP APPROVAL DATE:
January 30, 2009
This Grant Agreement between the Department of Housing and Urban Development (HUD) and
Collier County is made pursuant to the authority of sections 2301 - 2304 of the Housing and
Economic Recovery Act of 2008 (Public Law I 10-289 (July 30, 2008)) (HERA). The program
established pursuant to section 2301-2304 is known as the "Neighborhood Stabilization
Program" or "NSP." The Notice of Allocations, Application Procedures, Regulatory Waivers
Granted to and Alternative Requirements for Redevelopment of Abandoned and Foreclosed
Homes Under the Housing and Economic Recovery Act, 2008 published at 73 FR 58330
(October 6,2008) (Notice); HERA; the Grantee's submission for NSP assistance (Grantee
Submission); the HUD regulations at 24 CFR Part 570 (as modified by the Notice and as now in
effect and as may be amended from time to time) (Regulations); and this Funding Approval,
including any special conditions, constitute part of the Grant Agreement.
Subject to the provisions of this Grant Agreement, HUD will make NSP Grant Funds in the
amount of $7,306,755 available to the Grantee upon execution of this Grant Agreement by the
parties. The Grantee shall have 18 months from the date of HUD's execution of this Grant
Agreement to obligate the NSP Grant Amount pursuant to the requirements of HERA and the
Notice. The Grantee shall have 48 months from the date of HUD's execution of this Grant
Agreement to expend the NSP Grant Amount pursuant to the requirements of the Notice. The
NSP Grant Funds may be used to pay eligible costs arising from eligible uses incurred after the
NSP Approval Date provided the activities to which such costs are related are carried out in
compliance with all applicable requirements. Pre-award planning and general administrative
costs may not be paid with funding assistance except as permitted in the Notice; the Notice limits
such costs to those incurred on or after September 29, 2008. Other pre-award costs may not be
paid with funding assistance except as permitted by 24 CFR 570.200(h); for purposes of NSP,
such costs are limited to those incurred on or after the date that the NSP substantial amendment
was received by HUD.
Agenda Item No.1 OE
March 2422009
Page 4 of 7
The Grantee agrees to assume all of the responsibilities for environmental review,
decisionmaking, and actions, as specified and required in regulations issued by the Secretary
pursuant to Section I04(g) of Title I of the Housing and Community Development Act, as
amended (42 U.S.c. 5304) and published in 24 CFR Part 58. The Grantee further acknowledges
its responsibility for adherence to the Grant Agreement by sub-recipient entities to which it
makes funding assistance hereunder available.
This Grant Agreement may be amended only with the prior written approval of HUD. In
considering proposed amendments to this Grant Agreement, HUD shall review, among other
things, whether the amendment is otherwise consistent with HERA, the Notice, and the
Regulations.
The Grantee may amend its Grantee Submission; however, such amendments, induding
substantial amendments as defined in 24 CFR Part 91, will be subject to the requirements of 24
CFR Part 91 (or any successor regulation) and any revisions HUD may make to the Notice (or
any successor Notice or regulation).
The Grantee shall at all times maintain an up-to-date copy of its Grantee Submission, including
all amendments approved by HUD, on its Internet website as required by the Notice. Further,
the Grantee shall maintain information on all drawdowns, deposits, and expenditures of grant
funds and program income under this Funding Approval and Grant Agreement and any other
records required by 24 CPR 570.506, in its files and shall make such information available for
audit or inspection by duly authorized representatives ofHUD, HUD's Office of the Inspector
General, or the Comptroller General of the United States.
The Grantee shall submit information on performance measurement as established by the
Secretary for activities undertaken with NSP grant funds.
The Grantee is advised that providing false, fictitious or misleading information with respect to
NSP Grant Funds may result in criminal, civil or administrative prosecution under 18 USC
Sl00l, 18 USC S1343, 31 USC S3729, 31 USC 93801 or another applicable statute.
Close-out of this grant shall be subject to the provisions of 24 CFR 570.509 or such close-out
instructions as may hereafter be issued by HUD specifically for NSP grants.
Special Conditions are attached to this Grant Agreement.
Agenda Item NO.1 OE
March 2432009
Page 5 of 7
This NSP Grant Agreement is binding with respect to HUD in accordance with its terms upon
the execution by HUD in the space provided above, subject to execution on behalf of the
Grantee.
The United States Department of
Housing and Urban Development
Collier County
-~
Signature of Authorized Official
Signature of Authorized Offical
Maria R. Ortiz
Name of Authorized Official
OCNNA FIAIA
Name of Authorized Official
Director. CPD
Title of Authorized Official
GlAm14N
Title of Authorized Official
'- 3~ V --Of
Date of Signature
MAROJ 74, )('{'f:)
Date of Signature
59-fiXXl558
Grantee Tax Identification Number
For HUD CFO Use Onlv
Current Balances
Increase&n)ecreases
Ending Balance
Date
Approved as to form & legal sufficiency
QMPMM ~
Colleen'Greene,
Assistant County Attorney
ATTEST:
DWIGHT E. BROCK. Clerk
By:
"
Agenda Item No.1 OE
March 24, 2009
Page 6 of 7
Special Conditions to Funding Approval and Grant Agreement For
Neighborhood Stabilization Program (NSP) Funds
as Authorized and Appropriated by under the
Housing and Economic Recovery Act of 2008
(Public Law 110-289, July 30, 2008)
NSP Grantee: Collier County
NSP Grant Number B-08-UN-I2-0003
NSP Grant Amount: $7,306,755
NSP Approval Date: January 30, 2009
Special Conditions:
I. Pursuant to 24 CFR 85.12 (a)(I)(2)(4) or (5), a special condition applies to this Grant
Agreement due to past performance with the County's timeliness ratio in the CDBG
program. The County did not meet the CDBG timeliness requirement in FY 2008. The
County was required to have no more than 1.5 years of funding available in its CDBG
line of credit at the end of the 10th month of its program year. The balance as of May 2,
2008 was $4,695,973 which represents 1.96 years of funding. It appears that the County
not being able to draw down in a timely manner stems, in part, from undertaking several
ineligible activities and experiencing delays with approvalslreimbursements for other
County Departments. The County shall submit documentation describing how past
CDBG performance issues have been resolved or are now being resolved and explaining
how they will not impact the administration of the NSP program. If the County fails to
submit such documentation within 60 days from the date HUD signed this Grant
Agreement, HUD may thereafter withhold authority to incur additional obligations of
NSP Grant Funds or take other actions authorized under 24 CFR 85.l2(b).
2. Pursuant to 24 CFR 85.12 (a)(3), a special condition applies to this Grant Agreement due
to the size of the NSP Grant Amount relative to your 2008 CDBG grant. Within 60 days
of the date HUD signed this grant agreement, the County must submit a management
plan that describes how it has determined that it possesses adequate staff and other
resources necessary to administer NSP grant funds. If the County fails to submit this plan
within 60 days, HUD may thereafter withhold authority to incur additional obligations of
NSP Grant Funds.
c
Page I of I
Agenda Item No.1 OE
March 24, 2009
Page 7 of 7
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number:
Item Summary:
10E
Recommendation that the Board of County Commissioners approves, and authorizes the
Chairman to sign, the attached U.S. Department of Housing and Urban Development
entitlement funding agreement for the Neighborhood Stabilization Program for FY 2008-2009
providing $7,306,755 in funding for Collier County. (Marcy Krumbine, Housing and Human
Services Director)
Meeting Date:
3/24/2009900.00 AM
Approved By
Colleen Greene
Assistant County Attomer
Date
County Attorney
County Attorney Office
3/6/20093:18 PM
Approved By
Jeff Klatzkow
Assistant County Attorney
Date
County Attorney
County Attorney Office
3/11/2009 4:56 PM
Approved By
Marla Ramsey
Public Services Administrator
Date
Public Services
Public Services Admin.
3/12/2009 4:08 PM
A pproved By
OMS Coordi nator
OMS Coordinator
Date
County Manager's Office
Office of Management & Budget
3/13/2009 9:03 AM
Approved By
Sherry Pryor
Management & Budget Analyst
Date
County Manager's Office
Office of Management & Budget
3/16/200912:22 PM
Approved By
James V. Mudd
County Manager
Date
Board of County
Commissioners
County Manager's Office
3/16/2009 1 :30 PM