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Agenda 03/24/2009 Item #10F Agenda Item No. 10F March 24, 2009 Page 1 of 23 ~ EXECUTIVE SUMMARY Recommendation that the Board of County Commissioners approves the implementation ofthe Neighborhood Stabilization Program grant and Administrative Plan, and approves and authorizes the Chairman to sign the attached Neighborhood Stabilization Program Resolution. OBJECTIVE: That the Board of County Commissioners approves the implementation of the Neighborhood Stabilization Program grant and Administrative Plan, and approves, and authorizes the Chairman to sign, the attached Neighborhood Stabilization Program Resolution. CONSIDERATIONS: On November 18, 2008, under agenda item 1603, the Board of County Commissioners approved a substantial amendment to the local One Year Action Plan to participate in the Neighborhood Stabilization Program. As a result, Collier County has been awarded $7,306,755 in federal grant funds to acquire foreclosed and abandoned residential structures. - The Neighborhood Stabilization Program is authorized by Title III of the Housing and Economic Recovery Act of 2008 (HERA). Under the tcrms of HERA, Collier County has eighteen (18) months to obligate the $7,306,755 awarded. The beginning of the eighteen (18) month period was triggered by the U.S. Department of Housing and Urban Development's (HUD) execution of the Grant Agreement on March 4, 2009. Failure to obligate the full grant award within the mandated eighteen (18) months may result in a loss or reduction in funding. To expedite the rnanagement of the Neighborhood Stabilization Program, staff recommends approval of the attached Resolution, grant administration documents, plans and procedures which will authorize County staff to implement the Neighborhood Stabilization Program Action Plan as approved by the BCC on November 18, 2008. This implementation utilizes the expertise of County Departments in varying capacities to execute this grant agreement with efficiency, accuracy and transparency. Administrative Plan The attached Administrative Plan provides guidance on the policy and procedures for management of the Collier County Neighborhood Stabilization Program. In addition to specifYing the procedures to implement the acquisition, rehabilitation, transfer of property, demo lition and land banking properties, the Plan authorizes the Director of the Department of Housing and Human Services to sign rehabilitation contracts and direct assistance mortgages up to $50,000 per residential unit. The Plan also authorizes the Purchasing Director to execute purchase orders for construction, property maintenance or other eligible Neighborhood Stabilization Program activities up to $200,000 with qualified and approved vendors. Resolution The attached Resolution authorizes Real Property Management to negotiate Agreements for Sale and Purchase for the acquisition of residential properties funded with Neighborhood -- Stabilization Program grant dollars. The Resolution authorizes the Chairman to . sign all Agreements for Sale and Purchase once reviewed and approved by the County Attorney's Office. Agenda Item No. 10F March 24, 2009 Page 2 of 23 Staffing The Collier County Department of Housing and Human Services is authorized by HUD to use ten (10) percent of the total grant amount and ten (10) percent of program income for general administration. Currently, Housing and Human Services has a number of positions that are vacant but not "frozen". To effectively administer the Neighborhood Stabilization Program, Housing and Human Services may fill these positions as needed utilizing grant funds. No additional general fund dollars will be used and all positions will be tied specifieally to this grant aeeount string. FISCAL IMPACT: The Neighborhood Stabilization Program totaling $7,306,755 will allow the Department of Housing and Human Services to administer, implement and monitor the strategies detailed in the substantial amcndment to the Collier County Action Plan adopted by the Board on November 18, 2008. Acceptanee of this grant agreement will have no additional effects on ad valorem or general fund dollars. GROWTH MANAGEMENT IMPACT: Acceptance and implementation of this grant agreement will further the goals, objectives and polieies of the Growth Management Plan's Housing Element. LEGAL CONSIDERATIONS: This item has been reviewed and approved by the County Attorney's Offiee. This item is not quasi judicial, and as sueh ex parte disclosure is not required. This item requires majority vote only. This item is legally sufficicnt for Board action. -CMG STAFF RECOMMENDATION: That the Board of County Commissioners approves the implementation of the Neighborhood Stabilization Program grant and Administrative Plan, and approves, and authorizes the Chairman to sign, the attaehed Neighborhood Stabilization Program Resolution. PREPARED BY: Marcy Krumbine, Director, Housing and Human Services Agenda Item No. 10F March 24, 2009 Page 3 of 23 RESOLUTION NO. 2009-_ A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, APPROVING AND AUTHORIZING THE ACTIVITIES AS OUTLINED IN THE COLLIER COUNTY NEIGHBORHOOD STABILIZATION PROGRAM SUBSTANTIAL AMENDMENT IN ACCORDANCE WITH THE PROVISIONS OF THE HOUSING AND ECONOMIC RECOVERY ACT OF 2008 ADMINISTERED BY THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT; DELEGATING AUTHORITY TO CHAIRMAN OF THE BOARD OF COUNTY COMMISSIONERS TO EXECUTE DOCUMENTS INCIDENT TO THE ACQUISITION OF FORECLOSED PROPERTIES ON BEHALF OF THE BOARD; AND AUTHORIZING STAFF TO PROCEED WITH ACTIVITIES REQUIRED TO EXPEDITE SAID PROPERTY ACQUISITION AND REHABILITATION. WHEREAS, on March 24, 2009, the Board of County Commissioners approved and accepted a grant from the U.S. Department of Housing and Urban Development (HUD), and also approved the Administrative Plan developed by the Department of Housing and Human Services for administration of the grant under the terms and conditions of the Neighborhood Stabilization Program as authorized by Title III of the Housin9 and Economic Recovery Act of 2008; and WHEREAS, provisions of the Neighborhood Stabilization Program require that all grant funds be obligated for initial acquisitions of foreclosed residential properties within eighteen (18) months of the award notice executed March 4, 2009; and WHEREAS. provisions of the Neighborhood Stabilization Program provide that funds realized from the subsequent disposition of properties and classified as program income may be further utilized for eligible activities as described by Page 1 of 5 Agenda Item NO.1 OF March 24. 2009 Page 4 of 23 the Neighborhood Stabilization Program and HUD, but thai all transactions must be completed by February 13.2013; and WHEREAS. the expeditious acquisition of property is of paramount importance to the timely administration and successful implementation of the Neighborhood Stabilization Program for the benefit of Collier County; and WHEREAS, accomplishing the property acquisition and rehabilitation within the HUD imposed timeframes. and ensuring that the maximum possibie number of properties are acquired and rehabilitated within those timeframes, requires a properly coordinated team effort between the Department of Housing and Human Services, the Real Property Management Section of the Facilities Management Department, the Office of the County Attorney, and the Board of County Commissioners, and certain processes require streamlining and abbreviation wherever possible. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that the acquisition and rehabilitation of foreclosed residential properties under the provisions of the Neighborhood Stabilization Program is necessary for a public purpose and is in the best interest of Collier County, and the Board recognizes the importance of the successful and timely implementation of the Program. AND BE IT FURTHER RESOLVED that the Board of County Commissioners of Collier CDunty, Florida, recognizes the importance of the property acquisition and rehabilitation function and its relationship to the overall project schedule; and the Board desires to facilitate and expedite the property Page 2. of 5 Agenda Item No.1 OF March 24, 2009 Page 5 of 23 acquisition and rehabilitation process to the extent that it is empowered to do so by law. AND BE IT FURTHER RESOLVED that the following measures are reasonably necessary for the timely, efficient, and expeditious implementation and completion of the Collier County Neighborhood Stabilization Program: 1. The County Manager or his designees are hereby authorized and directed to identify, evaiuate, appraise, and perform all due diligence procedures necessary for the acquisition and rehabilitation of residential properties. all in accordance with the provisions of the Neighborhood Stabilization Program and HUD requirements. 2. The Chairman of the Board of County Commissioners is hereby authorized to execute Agreements for Sale and Purchase for the acquisition of foreclosed residential properties at purchase prices in accordance with the Collier County Neighborhood Stabilization Plan Administrative Plan, based upon appraised values discounted at least five (5) percent, and as approved by the County Attorney's Office for the life of the project ending February 13. 2013 3. Upon approval of the County Attorney's Office of all documents necessary for property acquisition, the County Manager or his designees are hereby authorized and directed to proceed to acquire foreclosed residential properties, to follow all appropriate closing procedures, and to record all necessary documents in the Public Records of Collier County, Florida, The County Manager or his designee is further authorized to prepare related Warrants for payment of purchase prices and other related acquisition costs; and the Board of County Commissioners Page 3 of 5 Agenda Item No. 10F March 24, 2009 Page 7 of 23 . Approved as to form and legal sufficiency: ~en M. Greene Assistant County Attorney . . Page 5 of 5 Page I of I Agenda Item No.1 OF March 24, 2009 Page 8 of 23 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS Item Number: Item Summary: 10F Meeting Date: Recommendation that the Board of County Commissioners approves the implementation of the Neighborhood Stabilization Program grant and Administrative Plan, and approves, and authorizes the Chairman to sign, the attached Neighborhood Stabilization Program Resolution. (Marcy Krumbine, Housing and Human Services Director) 3/24/200990000 AM Prepared By Marcy Krumbine Director Date Public Services Housing & Human Services 3/10/20092:27:29 PM Approved By Marcy Krumbine Director Date Public Services Housing & Human Services 3/11/200912:51 PM Approved By Steve Carnell Purchasing/General Svcs Director Date Administrative Services Purchasing 3/12/2009 10:21 AM Approved By Marla Ramsey Public Services Administrator Date Public Services Public Services Admin. 3/12/2009 4:24 PM Approved By Colleen Greene Assistant County Attorner Date County Attorney County Attorney Office 3/17/200910:47 AM Approved By OMB Coordinator OMB Coordinator Date County Manager's Office Office of Management & Budget 3/17/200912:56 PM Approved By Jeff Klatzkow Assistant County Attorney Date County Attorney County Attorney Office 3/17/20092:17 PM Approved By Sherry Pryor Management & Budget Analyst Dab> County Manager's Office Office of Management & Budget 3/17/20092:28 PM A pproved By James V. Mudd County Manager Date Board of County Commissioners County Manager's Office 3/17/20094:00 PM Agenda Item No.1 OF March 24, 2009 o 0 f Collier County Housing and Human Services 3301 E Tamiami Trail Building H - Suite 211 Naples, Florida 34112 (239) 252-4663 This Administrative Plan is a guide for operating the Collier County Neighborhood Stabilization Program. This guide was prepared by the Department of Housing and Human Services. Grant Number B-08-UN-12-0003 Grant Amount $7,306,755 Agenda Item NO.1 OF March 24, 2009 Page 10 of 23 I. INTRODUCTION ..................... ... ... .................... ..... ....... ..... ... .............. ......... ........ ... ......... .... ............. .................. ....3 II. ACQUISITION OBJECTIVES AND POLICIES ............................................................................................................. 3 A. 0 b jective (s) ............................................................................................................................... ........................ 3 B. Acquisition Policies ........................... ........ ..... ........................ ..... ....... ....... ........... ............. ....... ............. ............ 3 C. Identifying Property.......... .... .... ... ..... ................ ..... .......... ........ ...... ....... ....... ......... ........ ..... ....... .............. ..........4 D. Acquisition Regulations ...... ..... ....... ..... ...... ..... ...... ............ ....... ......... ... ............ ....... ... .... ............... ............... .....4 III. REHABILITATION OBJECTIVES AND POLICIES....................................................................................................4 A. Objective( s) ............................................................................................................................... ........................4 B. Re h a bi Iitation Policies........................................................................................................................... .... ........4 C. Re ha bilitatio n Regu lations........................................................................................................................... .... . S IV. DIRECT ASSISTANCE OBJECTIVES AND POLICIES............................................................................................... S A. 0 b jective( s) ................................................................................................................................... .................... S B. Direct Assistance Policies ........... ................. ..... ......... ..... ....................... ........ ..... ......... .............. ...... ....... ..... ...... S C. Direct Assistance Regulations ........................... ..... ........ ..... ..... ......... ............... .............. ............... .......... .......... 6 V. DEMOLITION OBJECTIVES AND POLICiES..............................................................................................................6 A. Objective(s) .. .................... .... ..... .......... ...... ..... ... ..... ....... ........... ......... ... ...... .... ....... ..... ...... ..... .... ...... ..... ..... ........6 B. Demolition Policies ........ ...................... ........... ................................... ....... ..... ............................. ...... .... ............6 C. Demolition Regulations. ..... ...................... ............. ...................... ..................... .............................. ..... ........ ..... 7 VI. LAND BANK OBJECTIVES AND POLICIES............................................................................................................7 A. Ob jective( s) ................................................................................................................................... .................... 7 B. Land Bank Policies...... ............ ............ ...... ......... ..... ............ ........................ ................... ....... ........................ ..... 7 C. Lank Bank Regulations ............................................................................................................................... ....... 7 VII. TRANSFER PROPERTY OBJECTIVES AND POLICIES ............................................................................................ 8 A. 0 b jective(s) ............................................................................................................................... ........................ 8 B. Transfer Property Policies......... ............ ............ .............. ......... ...... .................. ............. ..... ........................ ....... 8 C. Transfer Property Regulations.... ................. ...... ......... ........... .............. .................... .... .................... ....... ...... ....8 VIII. ACTIVITY PROCEDURES ....... ......... .................... ....... ........ ... ..... ... ... ..... ... .......... ..... ......... ........ ............ ....... .........8 A. General......... .................... ....... ............... ................ .......... .......................... ............ ..... ......... ............ .................8 B. Acquisition of Real Property .............................................................................................................................9 C. Reha bilitation... ..... ..... ............. .................... ............................................ ...... ................................................. .10 D. Direct Assista nce ...... ..... ................................... ....................................................... .................................... ....10 E. Demolition.......................................... ........................... ................... ....... .............. .................. .......................11 F. Land Banking.... ...................... ................ .............................. ....................................................................... ....11 G. Transfer of Property............................................ ........ .......................... .......... .............. .................... ...... ..... ...11 IX. PROG RAM PROCEDU RES.... ............................................................. ....................... ................... ............ ........ .12 A. Ge nera I................. ........................ ................... ................... .................................. ....... .. ..................... .......... ...12 B. Environmental Review......... .................. ................................................... ..................................................... .12 C. Change Orders..................... .................................................. ............ ..... ....... ....... ..... ........................ ....... ......12 ~ ~ymeM..........................................................................................................................................................U E. Final I nspection ......... .................................................. ......... ............. ............ ......................... ......... ............. ...13 F. Monitoring County Owned Properties ...........................................................................................................13 G. Transfer of Property...... ............ ............ ....... ........................... .............. ....... .......... .......... ........ .... ...... ........ .....13 X. PU RCHASI NG POLiCy......... ......... .................................... ......... ........... .............. .............. ......... ..... .... ............... ...13 XI. MARKET! NG PROG RAM ....................... .................................. ......... .............. ......... ......... ..... ............ ..... ......... .14 XII. RE PO RTI NG ....... ..... .... .................................. .............. ............ ..... .......................... ......... ............... ..... ......... ....14 XIII. PROG RAM INCOM E .................. ............................. ........................................ ................................. ........ .... ....is Page 2 of 15 I. INTRODUCTION Agenda Item No. 10F March 24, 2009 Page 11 of 23 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. II. ACOUlSITION OBIECTIVES AND POLICIES A. Obiective(s) Provide permanent residential structures that will be occupied by a household whose income is at or below 120 percent of area median income. B. Acquisition Policies 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. Page 3 of 15 Agenda Item No.1 OF March 24, 2009 Page 12 of 23 C. IdentifYina 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 oniy 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, prior to entering into a purchase contract. D. Acquisition Regulations . Acquisition - 24 CFR S70.201(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 92.254 III. REHABILITATION OBJECTIVES AND POLICIES A. Obiectivels I 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 Fiorida 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 4. Agenda Item NO.1 OF March 24, 2009 Eligible rehabilitation activities shall be listed and documented by a Bid specFti~~fid~ of 23 Report prepared by a Rehabilitation Specialist. The Bid Specification Report will serve as a cost estimate for the work plan. 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. 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. 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 sustainability and attractiveness of housing and neighborhoods. Rehabilitated property is subject to the minimum affordability period of the federal HOME Investment Partnership Program. 5. 6. 7. 8. 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 CFR 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 OBJECTIVES AND POLICIES A. Obiective(s) Provide permanent residential structures that will be occupied by a household whose income is at or below 120 percent of area median income. B. DirectAssistance Policies 1. 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 household(s) 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 16. 6. Agenda Item NO.1 OF March 24, 2009 Page 14 of 23 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. 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 or closing transaction. All residential properties acquired must have been foreclosed, vacant for at least ninety (90) days and on the lender's list of current inventory. 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. The interest rate on Direct Assistance Deferred Payment Loans (DPL) will be zero (0) percent. 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 N5P guidelines. The Direct Assistance DPL shall be secured through use of a Promissory Note and Mortgage. The assisted property is subject to the minimum affordability period of the federal HOME Investment Partnership Program. All acquired property transaction must be in conformity with the Uniform Relocation Act. All direct assistance activities will be made in conformity with Community Development Block Grant (CDBG) down payment assistance policies. All properties receiving N5P Direct Assistance must be, and remain, the homesteaded property of the owner. 7. 8. 9. 10. 11. 12. 13. 14. 15. C. Direct Assistance Regulations . Direct Assistance - 24 CFR 570.201(n) . Uniform Relocation Act - 49 CFR 24.103 . Property Location - 5ection 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 V. DEMOLITION OEfECTIVES AND POLICIES 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 6. Agenda Item No. 10F March 24, 2009 Demolition will be considered if the cost to rehabilitate the acquired propert~r~?;s~~lf: 23 not feasible. Note that only blighted structures are eligible for demolition. All residential structures acquired must have been foreclosed upon, vacant for at least ninety (90) days and on the lender's list of current inventory. All proposed demolition must be approved by the Director of Housing and Human Services, or his/her designee, prior to commencing work. 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. Demolished property is subject to the minimum affordability period of the federal HOME Investment Partnership Program. 3. 4. S. 7. C. DemolWon Regulations . Demolition - 24 CFR 570.201(d) . 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 . Land Banking - 24 CFR 570.201(a) and (b) . Resale of Property - Section 2301(d)(3) of HERA . Uniform Relocation Act - 49 CFR 24.103 VI. LAND BANK OBIECTIVES AND POLICIES A. Obiective[sJ 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 Policies 1. All properties acquired for the local land bank must have been foreclosed upon, vacant for at least ninety (90) days and on the lender's 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 CFR 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 Bank Regulations . Land Bank - 24 CFR 570.201(a) and (b) . 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 Page 7 of 15 . Uniform Relocation Act-49 CFR 24.103 Agenda Item No.1 OF March 24, 2009 Page 16 of 23 VII. TRANSFER PROPERTY OBJECTIVES AND POLICIES A. Obiective(s) Provide permanent residential structures that will be occupied by a household whose income is at or below 120 percent of area median income. B. Transfer Property Policies 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 (2S) percent of the Collier County NSP allocation must assist households whose income is at or below SO percent area median income. 3. When an abandoned or foreclosed-upon home or residential property is purchased, redeveloped or otherwise soid 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 eligibie NSP redevelopment or rehabilitation costs. Note that the maximum sales price for a property is determined by aggregating all costs of acquisition, rehabilitation, and redeveiopment (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. S. Acquired property is subject to the minimum affordability period of the federal HOME Investment Partnership Program. C Transfer Prooerty Regulations . Acquisition - 24 CFR S70.201(a) . Property Location - Section 2301(c)(2) of HERA . Program Income - 24 CFR S70.500(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 VIII. 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 iii. Agenda Item No.1 OF March 24, 2009 Page 17 of 23 Current job descriptions for all actively involved employees will be maintained By the Department of Human Resources. Financial duties and responsibilities must be separated so that no one employee has sole control over cash receipts, disbursements, payroll, reconciliation, etc. All activities must be in compliance with HERA, NSP and HUD CDBG regulations. iv. v. B. Acquisition of Real ProDerly i. 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. iv. Appraisals will note that the property has been vacant for at least ninety (90) days in orderto 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. xii. Real Property Management will coordinate with Finance to obtain funds necessary for closing. 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 Agenda Item NO.1 OF March 24. 2009 Page 18 of 23 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 Fiftv and 00/100 Dollars ($150.000.00) per residential unit. Any single acquisition purchase price in excess ofthe aforementioned limit must be specificaliy approved by the Collier County Board of County Commissioners. 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 Sherriff's 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 Fifty 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 Agenda Item NO.1 OF March 24, 2009 Page 19 of 23 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 ~edfication 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 Twentv 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 Bankina 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.). iv. Property may be held in land bank no ionger than ten (10) years from date of acquisition by Collier County. G. Transfer of Property i. 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. iii. 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. 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 IX. PROGRAM PROCEDURES Agenda Item NO.1 OF March 24, 2009 Page 20 of 23 A. General 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. 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. B. Environmental Review i. All properties proposed for acquisition must comply with the environmental review requirements pursuant to 24 CFR part 58. C. Chanre 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 greater than six (6) months time must be approved by the Collier County Board of County Commissioners. D. Pavment i. 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 iv. Agenda Item NO.1 OF March 24, 2009 Page 21 of 23 Eligible activities are those outlined in the US Department of Housing and Urban Development Docket No. FR-S2SS-N-01. 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 performance requirements. v. E. Finallnsoection 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 Prooerties 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 Sheriff's 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 Prooerty 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-corne-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 POLICY 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 Agenda Item NO.1 OF March 24, 2009 Pa,!)e 22 of 23 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. ii. 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 1$200.000.00) included under section X(ii)(a) 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, Coilier 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. XII. 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 of 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 Agenda Item NO.1 OF March 24, 2009 Page 23 of 23 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. In addition to this quarterly performance reporting, Collier County will report monthly on its NSP obligations and expenditures beginning thirty (30) days after the end of the lS'h 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 G, 2008 Federal Register Notice (73 FR 58341, Section 0, Reporting). XIII. PROGRAM INCOME Revenue received by Collier County (as defined at 24 CFR S70.S00(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 20G. The ten (10) percent limitation applies to the grant as a whole. The Collier County Neighborhood Stabilization Program Administrative Plan is adopted this 24'h day of March, 2009. ATTEST: DWIGHT E. BROCK, CLERK BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA BY: , DEPUTY CLERK BY: DONNA FIALA, CHAIRMAN 03/24/2009 APPROVED AS TO FORM AND LEGAL SUFFICIENCY BY: COLLEEN GREENE ASSISTANCE COUNTY ATTORNEY Page 15 of 15