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Agenda 07/28/2009 Item #16D10Agenda Item No. 16D10 July 28, 2009 Page 1 of 56 EXECUTIVE SUMMARY Recommendation that the Board of County Commissioners provides after -the -fact approval for submission of the Neighborhood Stabilization Program 2 application to the U.S. Department of Housing and Urban Development for funding under the American Recovery and Reinvestment Act of 2009 in the amount of $1.0,000,000. OBJECTIVE: Receive after - the -fact approval from the Board of County Commissioners for submission of the Neighborhood Stabilization Program 2 application to the U.S. Department of Housing and Urban Development for funding under the American Recovery and Reinvestment Act of 2009 in the amount of $10,000,000. CONSIDERATIONS: On May 4, 2009, the U.S. Department of Housing and Urban Development announced the availability of funds under the American Reinvestment and Recovery Act of 2009 for additional activities under Division B, Title III of the Housing and Economic Recovery Act of 2009, as amended. The Neighborhood Stabilization Program 2 will be awarded through competitions whose eligible applicants include states, units of general local governments, nonprofits and consortia of nonprofits. Applications must be received via paper submission not later than July 17, 2009. Due to this short timeframe, staff was unable to complete all necessary coordination and requirements for the application prior to the June 23, 2009 Board of County Commissioners meeting. Funds awarded as part of the Neighborhood Stabilization Program 2 are intended to stabilize neighborhoods whose viability have been and continue to be damaged by the economic effects of properties that have been foreclosed upon and abandoned. SPECIAL CONSIDERATIONS RELATED TO THE AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009: Grantees are required to ensure that public funds are expended responsibly and in a transparent manner to further the job creation, economic recovery, and other purposes of the Recovery Act. The grant program guidelines and subsequent grant agreement will identify additional compliance requirements related to the American Reinvestment and Recovery Act, however the attached document highlights the major requirements and how Collier County will maintain compliance. FISCAL IMPACT: No general funds are associated with application. No match funds are required. GROWTH MANAGEMENT IMPACT: The Neighborhood Stabilization Program 2 is consistent with the Goals and Objectives of the Collier County Growth Management Plan. LEGAL CONSIDERATIONS: This item has been reviewed and approved by the County Attorney's Office. This item requires majority vote only. This item is legally sufficient for Board approval. — CMG STAFF RECOMMENDATION: That the Board of County Commissioners provides after -the- fact approval for submission of the Neighborhood Stabilization Program 2 application to the U.S. Aaenda Item No. 161D10 July 28, 2009 Page 2 of 56 Department of Housing and Urban Development for funding under the American Recovery and Reinvestment Act of 2009 in the amount of $10,000,000. PREPARED BY: Frank Ramsey, Housing Manager, Housing and Human Services Agenda Item No. 16D10 July 28, 2009 Page 3 of 56 COLLIER COUNTY, FLORIDA Neighborhood Stabilization Program 2 Need Factor Application Number 985439843 The Collier County Department of Housing and Human Services 7/17/2009 In response to the Notice of Funds Availability issued by the U.S. Department of Housing and Urban Development on May 4, 2009, Collier County hereby respectfully requests Neighborhood Stabilization Program 2 funding in the amount of $10 million dollars. The requested funds, made available under the American Recovery and Reinvestment Act 2009, shall be used for the redevelopment of abandoned and foreclosed homes and residential properties as authorized under Title III of Division B of the Housing and Economic Recovery Act, 2008, as amended. Agenda Item No. 16D10 July 28, 2009 Page 42of 56 The NSP2 Application Jurisdiction: Collier County NSP2 Contact Person: Marcy Krumbine Jurisdiction Web Address: colliergov.net Address: 3301 E Tamiami Trail, Building H, Suite 211, Naples, Florida 34112 Need Factor Application Number: 985439843 Telephone: (239) 252 -4663 Fax: (239) 252 -2638 Email: marcykrumbine @colliergov.net A. APPLICATION OVERVIEW Collier County is an economically diverse community, with areas of affluence in the coastal communities and areas of extreme poverty in other locations throughout the County. The County is geographically large, encompassing approximately 2,025 square miles. Collier County, with an estimated population of 339,000, is located on the southern gulf coast of the Florida peninsula, due west of Miami -Ft. Lauderdale. The largest of the three incorporated cities in Collier County is Naples, which is located in the western and coastal area. The remaining two incorporated cities of Collier County are Everglades City and the City of Marco Island, Everglades City is located south and east of Naples and the City of Marco Island lies south of Naples along the Gulf of Mexico. Collier County has successfully administered Community Development Block Grant (hereinafter, "CDBG ") as an entitlement community for eight years. As such, the County has implemented numerous federally funded redevelopment activities. Over the years, the County has funded a variety of activities, including but not limited to, a successful single family rehabilitation program, multi - family affordable rental developments in Immokalee, the redevelopment of community parks in River Park and infrastructure development throughout Collier County. In addition to CDBG, Collier County began receiving HOME entitlement funds in 2003 and Emergency Shelter Grant funds in 2004. With regard to State of Florida funding, the County has been a recipient of the State Housing Initiatives Partnership program since the late 1990s. Finally, in 2005 and 2006 Collier County was awarded funding under the Disaster Recovery Initiative grant. When taken together, Collier County successfully administers millions of dollars in grant funds each year. Recently funded with CDBG dollars, Collier County assisted two (2) not - for - profit providers of affordable housing in the acquisition, rehabilitation and resale of foreclosed residential properties to income qualified households. Another recent redevelopment activity is the Collier County Neighborhood Stabilization Program (hereinafter, "NSP ") authorized under Title III of Division B of the Housing and Economic Recovery Act 2008 (hereinafter, "HERA "). Collier County was allocated $7,306,755 to assist with the redevelopment of abandoned and Need Factor Application Number: 985439843 Agenda Item No. 16D10 July 28, 2009 Page 53of 56 foreclosed homes and residential properties. To date, the program has been a success and funds have been obligated well ahead of schedule. As of the end of June 2009, 35 percent of NSP1 funds have been committed for the acquisition and rehabilitation of foreclosed properties. Funding received as part of NSP will allow Collier County to stabilize and redevelop the area most of risk of future economic decline. However, in order to effectively mitigate the growing foreclosure problem in Collier County additional funding is required. According to Irvine, California based RealtyTrac, the Naples -Marco Island metro area ranked number ten in the nation for foreclosure - related filings in March 2009. This ranking represented a five spot increase from the previous month, with one filing for every 105 households. The award of NSP2 funding will allow Collier County to continue and expand the fight against neighborhood decline and destabilization. B. NARRATIVE STATEMENTS 1. Rating Factor 1: Need /Extent of Problem (40 points) a. Target geography (10 points, also a threshold factor) Collier County will use the average foreclosure index score in identifying the target geographies for assistance in the redevelopment of abandoned and foreclosed homes. The destabilization of neighborhoods in Collier County is pervasive, affecting nearly all areas of the County. As such, any effort to stabilize the local housing market and revitalize the community must be Countywide. Collier County shall monitor local housing conditions and may implement NSP2 activities in any of the census tracts listed in Appendix — Target Geography. The need factor application number is 985439843. While nearly all areas of Collier County have been severely impacted by the increase in the number of foreclosure - related fillings, two areas in particular have been impacted: Golden Gate City and Golden Gate Estates. The first geographic area, Golden Gate City, is a densely populated area in the central and eastern portion of Collier County. Due to the density of the area, the numerous foreclosures on each street are contributing significantly to neighborhood instability and decline. The second area, Golden Gate Estates, is an area of Collier County in which lots were platted on one and a half (1.5), two (2), two and a half (2.5) and five (5) acre tracts, spreading to the eastern portion of the County for at least ten (10) miles. For many years this geographic area held the greatest amount of affordable housing for the residents of Collier County. As home prices throughout the County began to climb, Need Factor Application Number: 985439843 Agenda Item No. 16D10 July 28, 2009 Page Wf 56 residents flocked to Golden Gate Estates, investors developed large homes on the sizable lots and the prices reached unprecedented levels. Golden Gate Estates has proven especially difficult to redevelop and manage redevelop projects due to the large, dispersed geographic area it encompasses. Furthermore, the remote nature and lower density of Golden Gate Estates has made the area susceptible to vandalism, theft of water and HVAC systems, copper piping and windows. Once one of the hottest real estate markets in the country, Collier County witnessed an unprecedented decline in residential real estate prices beginning in late 2007 and the decline continues today. According to the National Association of Home Builders /Wells Fargo Housing Opportunity Index, during the third quarter of 2007 only 18.5% of homes sold in Collier County were affordable to a family earning the local area median income. While this number has increased to 63.8% during the first quarter of 2009, providing safe and decent housing continues to be difficult in Collier County. The downward adjustment in local real estate prices has produced two competing results. First, the median sales price has fallen from a high of $450,000 in 2007 to $179, 950 in 2009. One of the main forces driving prices downward are residential foreclosures. Inasmuch as these homes are now more affordable to the residents of Collier County, they are often unsafe. Many of the foreclosed properties are distressed, in need of significant repair and are contributing to the destabilization of neighborhoods throughout the County. Furthermore, obtaining first mortgage financing has become more difficult, based on more stringent underwriting requirements and the condition of foreclosed upon properties. One of major obstacles to affordable homeownership is saving for a down payment. Oftentimes the low and very -low income residents of Collier County are struggling to pay a monthly rent payment, as well as other household expenses. As such, saving for a down payment becomes difficult. In the past, Collier County Government has been able to responsibly assist these residents with the use of state and federal grant subsidies, as well as first mortgage products requiring a smaller contribution from the prospective home buyer. There have been a great many changes in the local credit market. Many lenders now require a minimum of 10% down payment, higher credit score ratings and increased asset reserves. These factors, when taken together with the condition of foreclosed upon homes, has made home ownership for income qualified individuals and families extremely difficult. Another factor affecting the target areas is reduced employment opportunities in Collier County. Collier County has long relied on industries fueled by population growth to provide employment opportunities for residents. According to the Collier County Need Factor Application Number: 985439843 Agenda Item No. 161D10 July 28, 2009 Page 75of 56 Economic Development Council's 2009 Market Facts report, construction, retail trade and accommodations and food service employ the largest number of Collier County residents. All three industries in Collier County have an average wage well below the area median income ($44,592, $29,120 and $22,683, respectively) thereby making any disruption in income potentially devastating. It is these individuals who are most at risk of foreclosure as the result of job loss in the current economy. According to the United States Department of Labor — Bureau of Labor Statistics, the unemployment rate, not seasonally adjusted, for the Naples — Marco Island MSA increased from 5.0% in April 2008 to 9.2% in April 2009. Furthermore, between April 2008 and April 2009, a total of 8,628 jobs were permanently lost in Collier County. This increase in the local unemployment rate has contributed to the decline of the target population by increasing the number of individuals and families unable to make their monthly mortgage payments. Finally, according to data from the Collier County Chamber of Commerce, between June 2008 and July 2009, 72 Chamber members have canceled their memberships due to failure of the local business. b. Market conditions and demand factors (30 points) To project the total month's inventory of abandoned and foreclosed properties, an analysis of the projected absorption rate is required. For purposes of this section, the absorption rate will be calculated with the assumption that Collier County does not receive any NSP2 funding. According to RealtyTrac, a leading provider of online foreclosure data, from June 1, 2008 to June 1, 2009 a total of 6,227 properties in Collier County received a foreclosure related filing (4,050 defaults, 526 auctions and 1,651 bank owned properties). Please note that this figure does not account for the additional properties which had been abandoned or foreclosed in the years preceding this analysis, nor does it account for any additional units that may come to market. A comparison of the number of listings to the number of sales will be used to establish an absorption rate for Collier County's residential real estate. Teasing only the abandoned and foreclosed properties from the data is difficult and unreliable. Therefore, consideration of the total absorption will be given. Using data from the Sunshine MLS, the average absorption rate in Collier County for 2009 is 4.60 %, or approximately 481 units sold per month. Absorption Rate Analysis Month Number of Sales Number of Listings Absorption Rate Need Factor Application Number: 985439843 Agenda Item No. 161D10 July 28, 2009 Page %of 56 January 2009 335 10,518 3% February 2009 407 10,600 4% March 2009 547 10,847 5% April 2009 560 10,463 5% May 2009 620 9,801 6% With some of the highest residential real estate prices and the greatest cost of living, Collier County's low to moderate income residents often find themselves cost burdened. A household is considered cost burdened if they are spending greater than 30% gross income on housing related expenses. Furthermore, a household is considered severely cost burdened if they are spending greater than 50% gross income on housing related expenses. The Shimberg Center for Housing Studies at the University of Florida has been designated by the Florida Legislature (Florida Statute 420.003) as the agency responsible for the maintenance of data on the affordable housing needs and household demographics for all counties in the state of Florida. As such, the Shimberg Center provides valuable quality data for the analysis of income characteristics and housing cost burdened in Collier County. The following table reflects the Shimberg Center's 2010 projection of the number of households in Collier County by income level. Projected Number of Households by Income Level Year Household Income Household Count 2010 <= 30% AMI 14,514 2010 30.01% - 50% AMI 13,585 2010 50.01% - 80% AMI 29,330 2010 80.01% - 120% AMI 32,436 As the above table shows, a total of 89,865 households in the Collier County target geographies will earn less than 120% AMI by the year 2010. In a County projected to have a total of 353,900 residents by the year 2010 (University of Florida, Bureau of Economic and Business Research, 2008), the number of households earning less than 120% AMI is significant (25 percent). In addition to a large number of households earning less than 120% AMI, the Shimberg Center also provides valuable data on the number of cost burdened, and severely cost burdened, households projected to exist in Collier County by the year 2010. Need Factor Application Number: 985439843 Agenda Item No. 161D10 July 28, 2009 Page 97of 56 The following table reflects the Shimberg Center's 2010 projection of the number of households cost burdened by income level. These households are defined as spending greater than 30 %, but less than 50 %, of their income on housing related expenses. Proiected Number of Cost Burdened Households by Income Level Year Household Income Household Count 2010 <= 30% AMI 1,778 2010 30.01% - 50% AM 4,270 2010 50.01% - 80% AMI 8,705 2010 80.01% - 120% AMI 5,260 Furthermore, the following table reflects the number of households severely cost burdened, dedicating more than 50% of their income to housing related expenses. Projected Number of Severely Cost Burdened Households by Income Level Year Household Income Household Count 2010 <= 30% AMI 7,853 2010 30.01% - 50% AMI 4,284 2010 50.01% - 80% AMI 3,601 2010 80.01% - 120% AMI 1,524 In summary, a total of 127,140 households in Collier County are projected to be either cost burdened or severely cost burdened by the year 2010; when 36 percent of households are projected to be cost burdened by 2010, clearly a problem exists. It is these very residents who are most at risk of foreclosure in the event job loss or a decrease income. Furthermore, the cost burdened and severely cost burdened households of Collier County are the individuals that would benefit most from obtaining an affordable home funded by NSP2. The cost burdened renters of Collier County represent a unique opportunity to use funding under NSP2 to increase the supply of affordable housing. As previously discussed, cost burdened renters are especially susceptible to displacement as the result of loss of employment or disruption in income. As detailed in the table below, Collier County is projected to have over 11,518 household renters cost burdened by 2010. Projected Number of Cost Burdened Renters by Income Level Year Household Income Household Count 2010 <= 30% AMI 3,853 2010 30.01% - 50% AMI 3,184 2010 50.01% - 80% AM 3,716 2010 80.01% - 120% AM 1 765 Need Factor Application Number: 985439843 Agenda Item No. 16D10 July 28, 2009 Page 1 C8of 56 Collier County is experiencing many factors that are contributing to neighborhood decline and instability in the target geography. Located in Southwest Florida, the County is the largest geographically in the state of Florida, with 2,025 square miles, making it larger than the states of Delaware and Rhode Island. The rural, predominantly migrant, community of Immokalee is approximately 45 miles from the coastal City of Naples. However, bus transportation is limited within the metropolitan area, and even more so in the outlying areas. The Collier County public school system is diverse, with student population 42% Hispanic, 5.8% African American and 5.7% Haitian. According to data released by the Collier County Public School system in 2008, 45% of the overall school population is categorized as economically needy. Furthermore, the 2008 annual point -in -time survey for homelessness found that the number of homeless children increased by a staggering 25% over the previous year. This evidence of economic distress has unfortunately resulted in an increase in the incidence of violence in the schools. From 2007 to 2008, Collier County experienced a 67% increase in food stamp recipients. Organizations that are feeding the hungry or operating food pantries are reporting a marked increase in the number of people served. In addition to the increase in food stamp recipients, the unemployment rate has increased from 5% to 9.2% over the last year (U.S. Bureau of Labor Statistics). This increase in unemployment has created a new face of people seeking assistance from social service agencies throughout the County; the increase in demand has been reported by some local social service agencies to be as high as 80 %. Collier County has traditionally had an economy based on tourism and real estate development. The downturn in the local real estate market has dramatically affected the local population. According to the U.S. Census Bureau, Collier County's poverty rate has increased from 8.9% in 2000 to 9.9% in 2007. Additionally, the local median sales price has declined from just under $500,000 in 2006 to $179,950 in 2009. The entire community is feeling the trickle down impact of the downturn in the local real estate market while the nationwide economic crisis is adversely affecting tourism. The decrease in tourism and the number of new residents has resulted in a number of business closings in Collier County, contributing to both the unemployment rate as well as the general instability of the target geography. One major economic factor contributing to neighborhood decline and instability is an increase in the number of foreclosures. Florida currently ranks number two in the nation in residential foreclosures. In April 2009, the Naples -Marco Island MSA ranked 10th in the nation for its foreclosure - related filings, according to RealtyTrac. An article appearing in the Naples Daily News on February 10, 2009 aptly noted that this "region Need Factor Application Number: 985439843 Agenda Item No. 16D10 July 28, 2009 Page 1 190 56 has been labeled 'ground zero' for the country's economic recession by national media, including The New Yorker Magazine and The New York Times, which both used in -depth reports to megaphone the area's troubles to the rest of the country ". The increased number of foreclosures has precipitated an increase in the number of blighted structures. As a result of this increase, the number of health and safety issues in local neighborhoods has also increased, while property values in every area of the County have dramatically declined. Finally, there are governmental factors that may contribute to neighborhood instability. Like many local governments, a decrease in revenue has forced local leaders to make difficult budgetary cutbacks. The passage of a State of Florida constitutional amendment requiring a reduction of local taxes in 2008 further reduced funding available to the local government. As previously noted, property values have declined throughout Collier County. This decline has left the County government with a $54.6 million dollar decrease in ad valorem tax revenues over the previous two years. To date, local government services in areas such as library operating hours, community center operating hours, staff and social services have been reduced as the result of the local economic crisis. At this time funding levels are at a critical level and may additionally adversely impact the quality of life and the quality of the neighborhoods in Collier County. 2. Rating Factor 2: Demonstrated Capacity of the Applicant and Relevant Organizational Staff (40 points) a. Past experience of the applicant (30 points) Collier County has an established and successful track record in assisting income qualified households gain entry into affordable homeownership, administering a comprehensive residential rehabilitation program, expending Disaster Recovery Initiative grant funds and providing homebuyer education. During the past 24 months (June 2007 —June 2009), the following activities similar to the ones covered under the NSP2 notice have been undertaken by Collier County. Tasks Undertaken Actual Results Skills & Resources Applied Income eligibility 434 households assisted determination; grant with a total of funded document Down Payment Assistance approximately $7.4 million preparation; monitoring dollars. and reporting; state grant funded. Home Buyer Education Monthly home buyer Partner with HUD Need Factor Application Number: 985439843 Agenda Item No. 16D10 July 28, 2009 Page 112)of 56 Need Factor Application Number: 985439843 education classes approved counseling provided with estimated agencies; one -on -one average monthly client counseling; state attendance of 35 persons. funded. Public speaking; Participated, hosted and homebuyer education; Outreach presented at a multitude mortgage pre - of housing events, expos qualification; state grant and exhibits. funded and local County funded. Mortgage underwriting; Over 600 persons pre- debt reduction and saving Loan Prequalification qualified for first mortgage plan development; credit financing. report evaluation; state grant funded and local County funded. Mortgage underwriting; appraisal and inspection 80 first mortgages review; mortgage approved and closed with documentation Collier County Loan preparation; HUD -1 Loan Consortium Consortium member settlement statement banks through Collier review; state grant funded County Housing and and local County funded; Human Services. private lenders /banks provide purchase money financing. Site inspection report preparation; bid specification preparation; Residential Rehabilitation 92 residential properties contractor procurement; rehabilitated. project management; final I inspection; project close - out; state and federal grant funded. Project management; Successfully administering Davis- Bacon; 10 DRI funded projects Environmental Review; Disaster Recovery Initiative with total grant award of monitoring and reporting; $3.1 million dollars. contract development and amendments; scope of Need Factor Application Number: 985439843 Agenda Item No. 16D10 July 28, 2009 Page 1p1of 56 Furthermore, Collier County has experience in the following categories most likely to achieve neighborhood stabilization in the target geography: City and regional planning — Collier County's Department of Housing and Human Services works closely with the County's Comprehensive Planning Department and Zoning Department when implementing housing activities. Additionally, an active member of the Housing and Human Service's Affordable Housing Advisory Committee is a member of the Collier County Planning Commission. Acquisition and disposition of foreclosed real estate — Beginning in late 2008, Collier County reallocated CDBG funds and partnered with two (2) non - profit affordable housing providers to acquire, rehabilitate and resell foreclosed residential properties. Additionally, Housing and Human Services is currently effectively acquiring foreclosed homes, obtaining bids from properly procured Need Factor Application Number: 985439843 project development; federal grant funded. Project management; Successfully administered Davis - Bacon; $6.3 million dollars in Environmental Review; Federal Grant Administration federal grants. Achieved monitoring and reporting; contract development and timeliness. 23 total amendments; scope of subrecipients. project development; federal grant funded. Project management; Two non - profits funded; Davis - Bacon; 28 homes acquired, Environmental Review; Acquisition /Rehabilitation rehabilitated and sold to contract development and amendments; scope of income qualified project development; persons /families. monitoring and reporting; federal grant funded. Awarded $7.3 million Project development; dollars. Properties have project management; been acquired; services acquisition; rehabilitation; Neighborhood Stabilization have been procured; procurement; policy Program administrative manual has research; monitoring and been prepared and reporting; federal and adopted. state grant experience; federal grant funded. Furthermore, Collier County has experience in the following categories most likely to achieve neighborhood stabilization in the target geography: City and regional planning — Collier County's Department of Housing and Human Services works closely with the County's Comprehensive Planning Department and Zoning Department when implementing housing activities. Additionally, an active member of the Housing and Human Service's Affordable Housing Advisory Committee is a member of the Collier County Planning Commission. Acquisition and disposition of foreclosed real estate — Beginning in late 2008, Collier County reallocated CDBG funds and partnered with two (2) non - profit affordable housing providers to acquire, rehabilitate and resell foreclosed residential properties. Additionally, Housing and Human Services is currently effectively acquiring foreclosed homes, obtaining bids from properly procured Need Factor Application Number: 985439843 Agenda Item No. 16D10 July 28, 2009 Page 1nof 56 and qualified general contractor and implementing a pre - qualification process for resale of NSP1 homes. • Rehabilitation of housing — Collier County has long maintained a robust and active residential rehabilitation program. When undertaking rehabilitation of housing in Collier County, all dwelling units once complete will meet local and state building codes. Furthermore, Collier County requires that the properties rehabilitated will meet, or exceed, current Florida Building Code (FBC); effective March 1, 2009, the code used is the 2007 FBC. Once complete all rehabilitated properties must meet HUD Section 8 Minimum Housing Quality Standards. • Redevelopment of vacant property — Using federal grant dollars, Collier County has partnered with non - profit providers of affordable housing to acquire vacant property for the purpose of developing residential structures. With the downturn in the local real estate market, acquiring existing properties for redevelopment, rather than vacant land, has become more cost effective. The Collier County Community Redevelopment Agency serves two areas within Collier County: Immokalee and the Bayshore Gateway Triangle. Both areas hold regular meeting, open to the public, where the redevelopment vision gets refined and implemented. The Immokalee CRA is currently working on projects such as master plan revisions, land development code revisions, housing improvements, green development and protection for our environment. The Bayshore Gateway Triangle CRA identified the following areas of concern and will seek to correct the issues with long -range strategic goals: a predominance of defective or inadequate street layout, faulty lot layout in relation to size, adequacy, accessibility or usefulness, unsanitary or unsafe conditions, and finally, deterioration of sites or other improvements. • Program marketing and management of waiting lists for potential residents — The Collier County Department of Housing and Human Services has planned and begun implementing a combination of traditional and progressive marketing and outreach methods to make residents aware of NSP1. The same tools will be applied to the marketing of NSP2. The marketing team consists of Housing and Human Services staff members, as well as the Public Services Division Public Information Officer; Housing and Human Services is a department within the Public Services Division of Collier County. When needed, assistance may be obtained from the Communications and Customer Relations Department. Housing and Human Services employs a full -time Housing Outreach Coordinator. This staff member meets with individuals and families to pre - qualify them for homeownership. During these meetings, clients are informed about the available programs as well as properties being acquired and rehabilitated as part of NSP1. Furthermore, the department's Housing Outreach Coordinator attends Need Factor Application Number: 985439843 Agenda Item No. 16D10 July 28, 2009 Page 1:53of 56 monthly homebuyer education courses to market available affordable housing programs. Additionally, the department maintains a presence at a variety of other events, such as housing fairs, senior expos, hurricane expos, flea markets and health fairs. As the social service arm of Collier County, Housing and Human Services staff members are actively marketing and promoting our programs in the community. For example, the department presents our services in excess of 50 times per year at various civic associations, homeowner's associations, industry groups, public information seminars and at non - profit group meetings. The aforementioned efforts regarding NSP1 have resulted in numerous stories being covered in print, television and radio media. The NSP1 program has been a feature story on the local news and staff has appeared on the Spanish language radio station 92.1FM to promote the NSP1 program. • Working productively with other organizations — As an entitlement agency since 2001, the Collier County Department of Housing and Human Services has a long history of partnering with local non - profits to implement the goals and objectives of the County's Consolidated Plan. Administering 23 subrecipient projects in the past two (2) years alone, the County has effectively worked with Habitat for Humanity of Collier County, Inc., the largest Habitat builder in the country, the Empowerment Alliance of Southwest Florida, the Collier County Housing Authority, Immokalee Non Profit Housing, Housing Development Corporation of Southwest Florida, Florida Non Profit Housing, Housing Opportunities Made for Everyone, the Shelter for Abused Women and Children, St. Matthew's House and Immokalee Helping Our People in Emergencies, Inc., to name a few. In addition to these housing related projects, Housing and Human Services works closely with social service agencies to implement public service projects. Examples of these agencies include the David Lawrence Center, Physician Led Access Network, Child Advocacy Center and the Hunger and Homeless Coalition. Reference #1 John Barlow Vice President Housing Opportunities Made for Everyone, Inc. 4351 Gulf Shore Blvd #19N Naples, Florida 34103 Phone: (239) 250 -9101 Email: johnbarlow @lerivage.net Reference #2 Sam Durso, MD Need Factor Application Number: 985439843 Agenda Item No. 16D10 July 28, 2009 Page 1fAof 56 President /CEO Habitat for Humanity of Collier County, Inc. 11145 Tamiami Trail East Naples, Florida 34113 Phone: (239) 775 -0036 Email: sdurso @hfhcollier.com b. Management structure (10 points) The Collier County Department of Housing and Human Services will leverage existing County staff and the diverse expertise within the County to successfully administer the NSP2. Additionally, funding received under NSP2 would allow the Department to hire and train additional grant support staff members to ensure the timely, accurate and responsible expenditure of NSP2 funds. The organizational chart below outlines the key management teams involved in administering the proposed NSP2 grant. Marcy Krumbine Director Frank Ramsey Program Administrator Acquisition Team I I Procurement ' I Rehabilitation I I Resell /Rent Team I Support Service Team Team Team Real Property Purchasing Rehabilitation Housing Outreach Informatio Management IH Department IH Specialists IH Coordinator IH Technology n County Attorney's Licensed Grant Support Communications de Enforcement Office Contractors Specialists anc Customer Relations County Attorney's l� Grant Support ILI Grant Support I'd Non- Profit Office Specialists Specialists Loan Consortium Organizations Need Factor Application Number: 985439843 Agenda Item No. 161D10 July 28, 2009 Page 1y;of 56 Furthermore, the list below details the key members of the NSP2 team, including members' names and positions. Grant Administration Team Name Title Department Marcy Krumbine Director Housing & Human Services Frank Ramsey Housing Manager Housing & Human Services Terri Daniels Accounting Supervisor Housing & Human Services Acquisition Team Name Title Department Toni Mott Manager Real Property Management Hans Russell Sr. Property Acquisition Specialist Real Property Management Gary Bigelow Property Acquisition Specialist Real Property Management Roosevelt Leonard Real Estate Appraiser Real Property Management Jason Bires Property Acquisition Specialist Real Property Management Sue Zimmerman Property Acquisition Specialist Real Property Management Marlene McLauglin Property Acquisition Specialist Real Property Management Diane Flagg Director Code Enforcement Mario Bono Investigator Code Enforcement Jeff Klatzkow County Attorney County Attorney's Office Colleen Greene Asst. County Attorney County Attorney's Office Heidi Ashton -Cicko Section Chief — Land Use County Attorney's Office Ray Carter Manager Risk Management Procurement Team Name Title Department Steve Carnell Director Purchasing Mike Hauer Sr. Purchasing Agent Purchasing Colleen Greene Asst. County Attorney County Attorney's Office Rick Torres Rehabilitation Specialist Housing & Human Services Tammy Hammer Rehabilitation Specialist Housing & Human Services Lisa Oien Grant Support Specialist Housing & Human Services Nancy Mesa Accountant Housing & Human Services Need Factor Application Number: 985439843 Agenda Item No. 16D10 July 28, 2009 Page 1ftof 56 Rehabilitation Team Name ( Title Department Tammy Hammer Rehabilitation Specialist Housing & Human Services Rick Torres Rehabilitation Specialist Housing & Human Services Lisa Oien Grant Support Specialist Housing & Human Services Priscilla Doria Loan Processor Housing & Human Services Mike Hauer St. Purchasing Agent Purchasing General Contractors General Contractors Private Business Resell /Rent Team Name Title Department Lisa Carr Housing Outreach Coordinator Housing & Human Services Lisa Oien Grant Support Specialist Housing & Human Services Priscilla Doria Loan Processor Housing & Human Services Sherry Bryant Asst. Case Manager Housing & Human Services Loan Consortium First Mortgage Lenders Private Business Support Service Team Name Title Department Jacquelyn DeSear Accountant Housing & Human Services Barry Axelrod Director Information Technology Andrew Brown Sr. GIS Programmer Analyst Information Technology John Torre Director Communications & Customer Relations Camden Smith Public Information Coordinator Public Services Division Kim Grant Sr. Mgmt & Operations Consultant Business Management & Budget Marlene Foord Grant Development & Mgmt Coordinator Administrative Services Division In an effort to expedite the accurate and responsible expenditure of federal and state grant funding, the following steps have been taken by the Housing and Human Services management team: • Eligible Projects — Processes and procedures have been developed to evaluate the eligibility of projects prior to funding award. Eligibility consists not only in determining if the proposed activity is authorized by the governing rules and Need Factor Application Number: 985439843 Agenda Item No. 16D10 July 28, 2009 Page 1197of 56 regulations, but also consists of an evaluation of the project's ability to expend funds in a timely manner. Contract Approvals — Housing and Human Services has worked diligently with the County Attorney's Office and the Clerk of Courts Finance Director to develop contracts and scope of services that contain the necessary and clear language required for reimbursements. Subrecipient Education — Housing and Human Services developed a subrecipient training program titled How to Do Business with Collier County— Working Together to Reach Our Goals. Two (2) training session were held and approximately fifty (50) vendors and /or subrecipients attended. Topics include items such as agreements, reimbursement requests, proper invoices and documentation. On March 24, 2009, the Collier County Board of County Commissioners approved an Administrative Plan for NSP1. The Administrative Plan will provide the framework for operation of the NSP2. The information below provides an example of the management structure, activities and procedures being used currently with NSP1. • Acquisition — Housing and Human Services is working with Real Property Management staff to identify foreclosed properties in the target geography. • Rehabilitation — Housing and Human Services has two full -time Rehabilitation Specialists on staff with many years of contractor, grant and single family rehabilitation experience. These Specialists have designed and implemented a program to quickly assess the condition of the home and the estimated cost to bring the property up to a safe, livable and saleable condition. Their automated inspection sheet allows Housing and Human Services to obtain an estimate of renovation expenses within 24 hours of viewing the property. • Contracting for Renovations — A program has been developed and implemented with the County's Purchasing Department whereby a Request for Qualifications was issued to general contractors. The department received 52 responses and will contract with those eligible and approved respondents for NSP1 rehabilitation as needed. The County's system is web -based and electronic, allowing for a very efficient and expedited bid solicitation process. • Selling Homes to Qualified Buyers — Housing and Human Services has a successful history, an established program of outreach and income qualification processes for potential homebuyers. Working with two HUD approved counseling agencies, clients receive 8 hours of homebuyer education. The in- house outreach coordinators are dedicated to meeting with clients on a daily basis and assisting with credit repair, income versus debt qualification and establishment of a savings plan. Together with the Collier County government television channel and the office of Communications and Customer Relations, Need Factor Application Number: 985439843 Agenda Item No. 16D10 July 28, 2009 Page Mof 56 the available affordable housing programs are able to be advertised to increase public awareness and promote transparency. 3. Rating Factor 3: Soundness of approach (45 points) a. Proposed activities (15 points) Collier County is aggressively administering the NSP1 allocation awarded in September 2008, executed by contract with the U.S. Department of Housing and Urban Development in March 2009, and accepted by the Collier County Board of County Commissioners in March 2009. If funded under NSP2, a portion of the funds would be used to expand the efforts of NSP1, which has been highly successful thus far. Specifically, funding under NSP2 would enable Collier County to allocate additional funds to purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed upon, in order to sell, rent or redevelop such homes and properties (eligible use B). Furthermore, funding received under NSP2 would allow Collier County to either expand or implement, all eligible activities listed below. Eligible Use Description Establish financing mechanisms for purchase and redevelopment of foreclosed upon homes and residential properties, NSP- Eligible Use (A) including such mechanisms as soft- seconds, loan loss reserves, and shared - equity loans for low- and moderate - income homebuyers. Purchase and rehabilitate homes and residential properties that have been NSP - Eligible Use (B) abandoned or foreclosed upon, in order to sell, rent, or redevelop such homes and properties. Establish and operate land banks for NSP- Eligible Use (C) homes and residential properties that have been foreclosed upon. NSP - Eligible Use (D) Demolish blighted structures. NSP- Eligible Use (E) Redevelop demolished or vacant properties. Many areas throughout Collier County are in need of stabilization due to an increase in the number of foreclosure - related filings, abandoned homes and vacant residential Need Factor Application Number: 985439843 Agenda Item No. 16D10 July 28, 2009 Page 2.V9of 56 dwelling units. To be successful in reconnecting neighborhoods, rapidly arresting decline, stabilizing neighborhoods and ensuring an adequate supply of affordable housing, Collier County's efforts under NSP2 must be Countywide. It is expected that the efforts under NSP2 (as well as NSP1) will result in stabilization for the housing market in the target geography and achieve long -term economic benefits no later than 2014. The following table details the amount of funds budgeted for each eligible use and CDBG eligible activity, as well as the responsible entity. Collier County intends the NSP2 program to be flexible to meet the changing market and function in a manner most likely to stabilize the target geography. Please note that all eligible activities listed below are identified using the use letter contained in the NSP2 NOFA. The amount of funding requested by this application is Ten Million and 00/100 Dollars ($10,000,000.00). Eligible Use Amount Budgeted Responsible Entity Administration $1,000,000 Collier County Eligible Use (A) $2,000,000 Collier County Eligible Use (B) $5,000,000 Collier County Eligible Use (C) $500,000 Collier County Eligible Use (D) $250,000 Collier County Eligible Use (E) $1,250,000 Collier County Collier County shall act as the lead agency in implementing the NSP2. Should funding be awarded, the County may consider partnering with non - profit agencies to implement and complete the activities described in this application. The following section describes, in detail, the proposed activities, including items such as the range of interest rates (if any), duration or term of assistance, tenure of beneficiaries and the location of the activity. Eligible Use (A) — Establish Financing Mechanisms The Collier County Department of Housing and Human Services will be the lead agency in working with local residents to acquire homes that have been foreclosed, vacant for at least ninety (90) days and on the lender's list of current inventory. The County may partner with various community organizations to assist persons in locating properties suitable for NSP2 assistance. Nonprofit and /or charitable organizations with a proven track record of successfully implementing this activity, as well as administering U.S. Department of Housing and Urban Development grant funds, may be solicited to perform all or parts of this activity. Need Factor Application Number: 985439843 Agenda Item No. 16D10 July 28, 2009 Page -Zof 56 This proposed activity will assist homebuyers by paying a portion of their down payment. The activity provides assistance for the purchase of single family homes, duplexes, condominiums, townhouses or DCA approved manufactured homes. Consistent with CDBG rules and regulations, the amount of assistance provided to an individual or families may not exceed 50 percent of the lender required down payment. The purchase price for all properties acquired with NSP2 funds shall be discounted at least one (1) percent from the current market appraised value of the home or residential property. The current market appraisal will be made in conformity with the requirements of the URA at 49 CFR 24.103. The applicant will procure a fixed -rate mortgage through the Collier County Loan Consortium, local banks, FHA or USDA. The interest rate shall not exceed one (1) percent above the then current 60 day Fannie Mae Index. Additionally, no mortgage insurance is allowed (the only exception being FHA Home Loans), all loans shall be fully documented, no pre - payment penalties are permitted, closing costs must be reasonable and customary and applicants' total debt -to- income ratio must be reasonable as determined by the Collier County Department of Housing and Human Services. All applicants must receive at least eight (8) hours of homebuyer education from a U.S. Department of Housing and Urban Development certified counselor. All lenders providing first mortgage financing for homes or residential properties assisted with NSP2 funds agree to comply with the bank regulators' guidance for non- traditional mortgages. Refer to Statement on Subprime Mortgage Lending issued by the Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Department of the Treasury, and National Credit Union Administration, available at http: / /www.fdic.gov /regulations /laws /rules /5000- 5160.htmi. Collier County will ensure long term affordability though the use of a recorded lien against the property. Additionally, all properties receiving assistance from the NSP2 will be secured by a recorded second mortgage on the subject property in favor of Collier County. The down payment second mortgage shall bear an interest rate of 0 %. No payment will be required until the home is sold, transferred, refinanced, is no longer the primary homesteaded residence or is operated for an activity deemed ineligible for assistance under NSP2 guidelines. At that time the balance of the loan will be repaid. Need Factor Application Number: 985439843 Agenda Item No. 16D10 July 28, 2009 Page 7tof 56 All applicants will be taken on a first - come - first - served basis. Applicants must meet NSP2 guidelines. The assisted residential property must be located within the boundaries of Collier County, Florida. Collier County shall place program income derived from the sale of the home or residential property into a separate revolving fund to recycle the NSP2 funds. Program income shall be used for any eligible NSP2 activity, a portion of which may be used for program administration. In no event shall NSP Funds be used to assist households earning more than 120 percent local area median income. Eligible Use (B) — Purchase and Rehabilitate Homes 1. For Sale The Collier County Department of Housing and Human Services will work with both the Real Property Acquisition Team, as well as designated non - profit partners to acquire foreclosed properties. The non - profit partners will be chosen competitively based on, but not limited to, organizational capacity and experience in acquisition -- and rehabilitation for sale activities. Currently, two local non - profit organizations have successfully completed activities similar to Eligible Use (B) using CDBG funds. These organizations are Habitat for Humanity of Collier County, Inc. and Housing Opportunities Made for Everyone, Inc. The purchase price for all properties acquired with NSP2 funds shall be discounted at least one (1) percent from the current market appraised value of the home or residential property. The current market appraisal will be made in conformity with the requirements of the URA at 49 CFR 24.103. If required, rehabilitation shall be completed and the subject property will be sold to an income eligible applicant earning no more than 120% of local area median income. The applicant will procure a fixed -rate mortgage through the Collier County Loan Consortium, local banks, FHA or USDA. The interest rate shall not exceed one (1) percent above the then current 60 day Fannie Mae Index. Additionally, no mortgage insurance is allowed (the only exception being FHA Home Loans), all loans shall be fully documented, no pre - payment penalties are permitted, closing costs must be reasonable and customary and applicants' total debt -to- income ratio must be reasonable as determined by the Collier County Department of Housing and Human Services. Need Factor Application Number: 985439843 Agenda Item No, 16D10 July 28, 2009 Page 2�of 56 All lenders providing first mortgage financing for homes or residential properties assisted with NSP2 funds agree to comply with the bank regulators' guidance for non - traditional mortgages. Refer to Statement on Subprime Mortgage Lending issued by the Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Department of the Treasury, and National Credit Union Administration, available at http: / /www.fdic.gov /regulations /laws /rules /5000- 5160.html. A portion of the NSP2 funds used in the acquisition and /or rehabilitation may remain in the home or residential property to reduce the required first mortgage amount and increase affordability. Collier County anticipates that many of the homes or residential properties acquired with NSP2 funds will require rehabilitation. Collier County shall prepare a written Rehabilitation Specification Report for each property to be used to describe in detail the required rehabilitation and establish of a cost estimate for the project. Collier County will ensure long term affordability though the use of a recorded lien against the property. If an owner who has been assisted though this program transfers title to the property before the affordability period expires, the assistance provided by the County will be subject to recapture. The County will monitor assisted units on an annual basis during the affordability period. All properties receiving assistance from the NSP2 will be secured by a recorded second mortgage on the subject property in favor of Collier County. In the event the unit is transferred to an owner(s) deemed eligible for assistance under NSP2 guidelines, the amount of assistance will remain in the subject property to reduce the required first mortgage amount. In the event the unit is transferred to an owner(s) deemed ineligible for assistance under NSP2 guidelines, the amount of assistance will be recaptured. The NSP2 second mortgage shall bear an interest rate of 0 %. No payment will be required until the home is sold, transferred, refinanced, is no longer the primary homesteaded residence or is operated for an activity deemed ineligible for assistance under NSP guidelines. At that time the balance of the loan will be repaid. The Collier County Department of Housing and Human Services shall maintain an active list of income - qualified and mortgage ready applicants. Staff members shall meet with and pre - qualify potential homebuyers on a regular basis. The applicant(s) will be qualified based on criteria such as household income, job stability, credit history and liquidity. All applicants must receive at least eight (8) hours of Need Factor Application Number: 985439843 Agenda Item No. 16D10 July 28, 2009 Page ZE3of 56 homebuyer education from a U.S. Department of Housing and Urban Development certified counselor. Collier County shall place program income derived from the sale of the home or residential property into a separate revolving fund to recycle the NSP2 funds. Program income shall be used for any eligible NSP2 Activity, a portion of which may be used for program administration. 2. For Rent The County shall identify properties for sale in the target geography of this NSP2 application. Multifamily dwelling units acquired will be used to benefit those households whose income does not exceed 50 percent area median income. If required, a rehabilitation plan shall be developed and the County and /or housing partners will determine if acquisition of the subject property is financially feasible. Collier County will also facilitate the acquisition of foreclosed property for the purpose of rental housing in conjunction with the Homeless Prevention and Rapid Re- Housing (hereinafter, "HPRP ") program. This activity will allow the County to rapidly re -house individuals and families who are at risk of becoming homeless. While operating this strategy, qualifying participants will sign lease agreements and outside agencies will provide the support services and financial assistance, as deemed appropriate by a case management determination. The purchase price for all properties acquired with NSP2 funds shall be discounted at least one (1) percent from the current market appraised value of the home or residential property. The current market appraisal will be made in conformity with the requirements of the URA at 49 CFR 24.103. Collier County will ensure long term affordability though the use of a recorded lien against the property. All rents charged shall conform to the Fair Market Rents (FMR) limits as defined in this application. The County will monitor assisted units on an annual basis during the affordability period. The Collier County Department of Housing and Human Services may partner with nonprofit organizations to provide services such as, but not limited to, property management, tenant selection and collection of monthly rental payments. Currently, the Collier County Housing Authority operates a Tenant -Based Rental Assistance (hereinafter, "TBRA ") Program. The agency has a proven track record of providing a Section 8 Department of Housing and Urban Development rental subsidy program. The TBRA program is designed to include a preference for those who are Need Factor Application Number: 985439843 Agenda Item No. 16D10 July 28, 2009 Page 24of 56 currently homeless, at risk of homelessness, elderly or special needs while meeting the fluctuating demands for housing. Other organizations that have expressed an interest in acquiring and managing rental property funded under the NSP2 are Florida Non - Profit Services, Inc., Immokalee Non - Profit Housing, Inc., the Shelter for Abused Women and Children and the David Lawrence Center. These organizations have experience in rental property management. Collier County or its housing partner may contact local social service agencies for tenant referrals. Currently, the following agencies provide referrals for the TBRA program: St. Matthew's House, Shelter for Abused Women and Children, Salvation Army, Catholic Charities, Collier County School Resources and Immokalee Friendship House. Applicants seeking assistance through the TBRA program are required to meet income guidelines and are subject to criminal background screening. Collier County shall place program income derived from the sale of the home or residential property into a separate revolving fund to recycle the NSP2 funds. Program income shall be used for any eligible NSP2 Activity, a portion of which may be used for program administration. Eligible Use (C) — Establish and Operate Land Bank For purposes of NSP2, a land bank is a governmental or nongovernmental nonprofit entity established, at least in part, to assemble, temporarily manage, and dispose of vacant land for the purpose of stabilizing neighborhoods and encouraging re -use or redevelopment of urban property. A land bank will operate in a specific, defined geographic area. It will purchase properties that have been foreclosed upon and maintain, assemble, facilitate redevelopment of, market, and dispose of the land- banked properties. Once disposed, all land bank properties will be secured by a recorded second mortgage in favor of Collier County. The second mortgage shall bear an interest rate of 0 percent. No payment will be required until the home is sold, transferred, refinanced, is no longer the primary homesteaded residence (if the end use is homeownership) or is operated for an activity deemed ineligible for assistance under NSP2 guidelines. At that time the balance of the loan will be repaid. An NSP2- 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 activity in accordance with NSP2 requirements. Need Factor Application Number: 985439843 Agenda Item No. 16D10 July 28, 2009 Page Mof 56 Collier County shall place program income derived from the sale of the home or residential property into a separate revolving fund to recycle the NSP2 Funds. Program income shall be used for any eligible NSP2 activity, a portion of which may be used for program administration Eligible Use (D) — Demolish Blighted Structures During the course of operating the Collier County NSP2, acquired blighted residential structures may be demolished. Demolished structures must meet the definition of "blighted" as detailed in this application. Once demolished, properties may be either transferred to a land bank or redeveloped. During demolition, Collier County will encourage deconstruction when appropriate. Deconstruction is the disassembly of both the structure and non - structural building components and materials with the intent of salvaging materials for re -use and recycling. Using funds allocated to eligible use (E), Collier County or a non - profit partner may redevelop demolished properties for occupancy by an individual or household whose income does not exceed 120 percent area median income. Eligible Use (E) — Redevelop Demolished or Vacant Properties Collier County may use funds awarded under NSP2 for the redevelopment of demolished or vacant properties. To be eligible for funding under this use, the property need not be foreclosed upon. Rather, the property must have been demolished or vacant. When undertaking redevelopment activities, Housing and Human Services will work with both our Real Property Acquisition Team, as well as designated non - profit partners to redevelop demolished or vacant properties. The non - profit partners will be chosen competitively based on, but not limited to, organizational capacity and experience in redevelopment of residential properties. Currently, two local non - profit organizations have successfully completed activities similar to Eligible Use (E) using CDBG funds. These organizations are Habitat for Humanity of Collier County, Inc. and Housing Opportunities Made for Everyone, Inc. An opportunity Collier County will explore under this eligible use is the redevelopment of abandoned and incomplete new construction projects. Throughout the County, there are a number of expired building permits assigned to homes that were abandoned at various stages of construction. While the majority of these abandoned projects are single family units, there also are a few multi- family projects; redevelopment of an abandoned -under construction multi - family complex may provide the ideal opportunity to provide affordable Need Factor Application Number: 985439843 Agenda Item No. 16D10 July 28, 2009 Page 2 %of 56 rental housing to persons and families whose household income does not exceed 50 percent of the area median income. Currently, there are in excess of fifty (50) outstanding building permits for homes that have been abandoned during the course construction. Specifically, these fifty (50) permits have had no activity for at least the past six (6) months. NSP2 funds provide an excellent opportunity to acquire these properties. Once acquired, each property would be inspected to determine if the existing partial construction should be demolished or if the project may simply be completed. b. Project completion schedule (5 points) As a recipient of NSP1 funding, Collier County has already implemented the activities authorized for assistance under Title III of Division B of the Housing and Economic Recovery Act, 2008, as amended. Collier County shall expend at least 50 percent of the allocated funds within two (2) years of the date funds become available to the County for obligation, and shall expend 100 percent of such funds within three (3) years of such date. The NSP2 project completion schedule shall include the following milestones for critical management actions once notice of funds award is received. Activity Milestone Start Date & End Date Identification of Properties Identify 500 properties Notice of Award — Month eligible for NSP2 assistance 12 of NSP2 Inspect 300 properties for Notice of Award — Month Inspection of Properties potential redevelopment 12 of NSP2 Acquisition of Properties Acquire 100 properties for Notice of Award — Month NSP2 eligible activities 24 of NSP2 Notice of Award — Month Rehabilitation of Properties Rehabilitate 100 properties 24 of NSP2 Demolish 15 blighted Notice of Award — Month Demolition of Properties structures 24 of NSP2 Redevelopment of Redevelop 15 demolished Month 24 of NSP2 — Properties properties Month 36 of NSP2 Notice of Award — Month Re -Sale of Properties Re -sell 75 properties 36 of NSP2 Transfer 25 properties to Notice of Award — Month Rental of Properties non - profit agencies to 36 of NSP2 operate as rental units Need Factor Application Number: 985439843 Agenda Item No. 16D10 July 28, 2009 Page 1_1)7of 56 c. Income targeting for 120 percent and 50 percent of median (5 points) As an entitlement community for federal grant funds, as well as a recipient of state affordable housing grant funds, the Collier County Department of Housing and Human Services has years of experience in designing and implementing programs to serve income qualified households. Using this experience, as well as the design of the County's NSP1, the department will implement income targeting strategies for households whose income does not exceed 120 percent of the area median income, as well as households whose income does not exceed 50 of the area median income. Without substantial subsidy, homeownership for those households whose income does not exceed 50 percent of the area median income may be difficult. Oftentimes in Collier County, this income population's employment is either seasonal or dependent on tourism. A household payment must be well under 30 percent gross income to account for any potential disruption in income. As such, Collier County will target those households earning not more than 50 percent area median income with either (a) homeownership whereby enough subsidies will be provided to ensure a household payment does not exceed 30 percent gross income or (b) with affordable rental units owned and operated by local non - profit providers of affordable housing. The affordable monthly rent amounts are defined in the following section. NSP2 allows recipients to provide assistance to those households whose income does not exceed 120 percent of the area median income. Raising the income level for NSP2 above the traditional CDBG rule not only increases the number of potential recipients but also allows Collier County to assist more people (i.e. higher income households may not require a great deal of subsidy). When the activity is homeownership, Collier County will meet the income targeting requirements, while at the same time providing affordable housing to the program recipients, by using subsidy retention in the redeveloped properties. When the property's redevelopment or rehabilitation has been complete, the home will be sold and a portion of the NSP2 funds may remain in the home to reduce the required first mortgage financing and increase affordability. When the activity is rental, Collier County will seek to acquire for redevelopment multi- family dwelling units in addition to single family residential properties. When engaging in rental activities, the County may partner with for - profit or non - profit organizations to Need Factor Application Number: 985439843 Successfully closeout NSP2 Month 30 of NSP2 — Program Close Out with accuracy and Month 36 of NSP2 transparency c. Income targeting for 120 percent and 50 percent of median (5 points) As an entitlement community for federal grant funds, as well as a recipient of state affordable housing grant funds, the Collier County Department of Housing and Human Services has years of experience in designing and implementing programs to serve income qualified households. Using this experience, as well as the design of the County's NSP1, the department will implement income targeting strategies for households whose income does not exceed 120 percent of the area median income, as well as households whose income does not exceed 50 of the area median income. Without substantial subsidy, homeownership for those households whose income does not exceed 50 percent of the area median income may be difficult. Oftentimes in Collier County, this income population's employment is either seasonal or dependent on tourism. A household payment must be well under 30 percent gross income to account for any potential disruption in income. As such, Collier County will target those households earning not more than 50 percent area median income with either (a) homeownership whereby enough subsidies will be provided to ensure a household payment does not exceed 30 percent gross income or (b) with affordable rental units owned and operated by local non - profit providers of affordable housing. The affordable monthly rent amounts are defined in the following section. NSP2 allows recipients to provide assistance to those households whose income does not exceed 120 percent of the area median income. Raising the income level for NSP2 above the traditional CDBG rule not only increases the number of potential recipients but also allows Collier County to assist more people (i.e. higher income households may not require a great deal of subsidy). When the activity is homeownership, Collier County will meet the income targeting requirements, while at the same time providing affordable housing to the program recipients, by using subsidy retention in the redeveloped properties. When the property's redevelopment or rehabilitation has been complete, the home will be sold and a portion of the NSP2 funds may remain in the home to reduce the required first mortgage financing and increase affordability. When the activity is rental, Collier County will seek to acquire for redevelopment multi- family dwelling units in addition to single family residential properties. When engaging in rental activities, the County may partner with for - profit or non - profit organizations to Need Factor Application Number: 985439843 Agenda Item No. 16010 July 28, 2009 Page Mof 56 provide services such as, but not limited to, property management, tenant selection and collection of monthly rental payments. Currently, the Collier County Housing Authority operates a TBRA program. The agency has a proven track record of providing a Section 8 Department of Housing and Urban Development rental subsidy program. d. Continued affordability (5 points) Collier County will use the minimum affordability period of the federal HOME Investment Partnership Program, 24 CFR 92.252(a), (c), (e) and (f), and 92.254. The minimum affordability periods are as follows: • Up to $15,000 — 5 Years • $15,001 to $40,000 —10 Years • Over $40,001 -15 Years • New Construction — 20 Years Collier County will ensure long -term affordability through the use of a recorded lien against the property. If an owner who has been assisted through the program transfers title to the property before the affordability period expires, the assistance provided by the County will be subject to recapture. Additionally, the County will impose a deed restriction on all properties assisted with NSP2. One covenant of the deed restriction will limit the home's appreciation, thereby ensuring long -term affordability. When a residential property assisted with NSP2 has an end -use of homeownership, the combined use of a recorded lien and deed restriction will ensure long -term affordability for both persons and households whose income does not exceed 120 percent of the area median income, as well as those persons and households whose does not exceed 50 percent of the area median income. In the event a residential property assisted with NSP2 has an end -use of rental, the maximum allowable rents shall not exceed the Fair Market Rents (FMR) as published annually by the US Department of Housing and Urban Development for the Naples — Marco Island MSA. The current rates are listed below. Final FY 2009 FMRs By Unit Bedrooms Efficiency 10 ne- Bedroom Two - Bedroom Three- Bedroom Four- Bedroom Final FY 2009 FMR 1 $ 868 1 $ 995 $ 1,120 $ 1,392 $ 1,449 Collier County anticipates that many persons and households whose income does not exceed 50 percent of the area median income will require affordable rental units. As such, limiting the monthly rental payments to those FMRs established by the US Need Factor Application Number: 985439843 Agenda Item No. 16D10 July 28, 2009 Page 321gof 56 Department of Housing and Urban Development should ensure the long -term affordability for this income population. e. Consultation, outreach, communications (5 points) When developing the target areas for the NSP1, Collier County sought input from local affordable housing providers, as well as other County staff members familiar with the areas suffering most from neighborhood destabilization and decline. Having been witness to the dramatic spread of neighborhood decline throughout the County, Housing and Human Services developed a target geography for NSP2 that includes all eligible census tracts. As stated previously, any effort to stabilize Collier County's residential development must be comprehensive and countywide. The Collier County Department of Housing and Human Services is, by its very nature, an organization dedicated to outreach. Relying on both the traditional marketing methods, such as print and television, and progressive marketing such as YouTube, Facebook and Twitter, Collier County will be able to market the NSP2 program to a wide array of individuals and families. Additionally, Housing and Human Services has staff fluent in Spanish and Creole to assist with marketing the programs to those persons more comfortable communicating in a language other than English. The first component of any marketing and outreach plan is the use of traditional marketing methods. The Public Services Division's Public Information Officer is responsible for the development and dissemination of press releases, news stories and interviews. As the primary contact for marketing and outreach, the Public Information Officer presents story ideas and photo opportunities to all media outlets. Under the NSP1 program, this has resulted in numerous stories and profiles by local news media outlets. Television advertising on the County's television station may prove a valuable marketing and outreach tool at a low cost to the department. Available to all residents of Collier County, the County's television station provides a platform for presenting information on the NSP2 program, the available properties redeveloped with NSP2 funds, as well as general information on affordable housing. In addition to the above mentioned traditional marketing methods, the County may develop information pamphlets for distribution at housing fairs, expos and other community events. With an active public library system, the County will have the opportunity to display the NSP2 program pamphlets at local libraries for citizen information. Need Factor Application Number: 985439843 Agenda Item No. 16010 V July 28, 2009 Page 3Zof 56 To affirmatively market the NSP2 program to the widest possible audience, Collier County will seek to employ progressive marketing methods. Examples include recording short video clips of each unit redeveloped for posting on internet sites such as YouTube, Facebook and other popular social networking sites. Furthermore, a ribbon cutting ceremony will be held for the first home redeveloped in each of the five County Commissioner's districts. Recognizing the prevalence of technology today, Housing and Human Services is currently investigating the possibility of creating an NSP2 blog so that interested parties may stay current on the program's progress and availability. In addition to the above marketing and outreach methods, Collier County will continually communicate program design, progress, opportunities and results on the County's website and during publicly advertised meetings. As a requirement of the State Housing Initiative Partnership (SHIP) program, Collier County has an active eleven member Affordable Housing Advisory Committee (hereinafter, "AHAC "). The AHAC hold a publicly advertised meeting once per month and the meeting is televised live on the Collier County television station. During the AHAC meetings, staff provides updates on major programs and initiatives such as NSP1 and, if funded, NSP2. Public speakers are welcome and any concerns forwarded to the County will be addressed in a timely manner. f. Performance and monitoring (10 points) The Collier County Department of Housing and Human Services department is a designated entitlement community for a variety of federal affordable housing grants. The department has spent a great deal of time in developing and implementing performance and monitoring processes and procedures to capture the data needed to manage grant programs effectively. During FY2008, new desk monitoring policies and procedure were implemented. The department created a form to be used by all Grant Coordinators during their regularly conducted monitoring sessions. Furthermore, a monthly monitoring report is prepared and presented to the Director of Housing and Human Services as an additional internal control. Finally, quarterly random audits are conducted on program files and the results of the reviews are presented to the Grant Coordinators. To ensure that audit reports are received and reviewed according to program regulations, Housing and Human Services has implemented a standard operating procedure that outlines the process for requesting subrecipient audit reports. Once received, the audit reports are reviewed and provided to the management team within the department. Need Factor Application Number: 985439843 Agenda Item No. 16D10 July 28, 2009 Page 3ftof 56 Specifically for NSP1, the Collier County Board of County Commissioners approved an Administrative Plan that provides the rules, regulations, policies and procedures for operating the NSP1. Complete with regulatory references (e.g. CFR citations), the Administrative Plan sets forth the performance and monitoring requirements of NSP1 to ensure transparent and accountable operation of the grant. 4. Rating Factor 4: Leveraging other funds, or removal of substantial negative effects (10 points) At time of this application, Collier County has not received any written agreements or firm commitments under which another entity agrees to perform services or provide resources for an activity specified in this application. Using the rubric for addressing vacant properties in Appendix 3 of the NSP2 NOFA, the following information calculates Collier County's score. • 1.5 times 100 properties proposed to be addressed through acquisition = 150. • 150 plus 15 properties proposed to be addressed through demolition = 165. • 165 divided by 1,993 bank owned properties = 8 %. Note vacant property data source is RealtyTrac, July 5, 2009. 5. Rating Factor 5: Energy efficiency improvement and sustainable development factors (10 points) While operating the NSP2, Collier County will encourage and, where appropriate, incorporate specific energy efficient, environmentally friendly and other sustainable or green elements into the program activities. During rehabilitation and redevelopment, Collier County will seek to add impact resistant windows to all NSP2 assisted properties. Installation of these impact resistant windows will ensure the safety of residents in the event of a hurricane, as well as promote additional energy efficiency. Another strategy the County will encourage is the use of HVAC systems with a specific SEER rating to promote cost effective energy efficiencies. Recently, Collier County applied for United States Department of Energy funding under the Energy Efficiency and Conservation Block Grant (hereinafter, "EECBG "). If funded, Collier County will train building department employees in the review of energy efficient design and equipment planned for use in residential homes. Furthermore, EECBG funding will be used to complete several County energy efficiency and renewable energy projects. Once complete, these projects will be visible to the public and may serve as a model for the residents and contractors in the area. The following guiding principles will be encouraged in all homes assisted with NSP2: Need Factor Application Number: 985439843 Agenda Item No. 16D10 July 28, 2009 Page Hof 56 • Seals around all windows, doors, electrical outlets and any other potential source for escaping air should be examined. If any area is deemed damaged or insufficient, the seal should be replaced to increase energy efficiency and reduce utility bills for the end -user. • All weather stripping should be in good condition to further insulate the home. • Programmable thermostats provide an easy way for homeowners to save on the cost to air condition their home. Homes assisted with NSP2 should have programmable thermostats installed and information provided to the homeowner on how to effectively use the device. • Installation of newer showerheads that use a maximum of 2.5 gallons per minute should be used in all homes assisted with NSP2. This simple improvement may save as much as 15,000 gallons of water per year and up to $150 in utility costs. • Turning down the temperature on your water heater is a simple way to conserve energy. Setting the temperature at 120 degrees or less will help save money. Transit Accessibility Collier County is a geographically large area with a proposed NSP2 target geography spread through the entire County. While no rail system exists in Collier County, every effort will be made to acquire abandoned, foreclosed or vacant homes and residential properties in close proximity to major centers of employment, County bus transit service and "park- and - ride" centers. Green Building Standards Collier County will strongly encourage all rehabilitation activities be undertaken using modern, green building standards. When contracting for rehabilitation activities under NSP2, the following guidelines will be referenced for the incorporation of green building standards: • HUD's "Building ENERGY STAR® Qualified Homes and Incorporating Energy Efficiency and "Green" Building Practices into HOME - funded Affordable Housing ". This document may be viewed on the HUD website. • Department of Energy (DOE) appliance and energy efficiency guidelines. Re -use of Cleared Sites Collier County intends to re -use all demolished sites within the term of the NSP2 grant. Proposed re -uses include replacement housing, a community resource or to provide an Need Factor Application Number: 985439843 Agenda Item No. 16D10 July 28, 2009 Page Mof 56 environmental function. One proposed re -use is a community garden in an area of Collier County known as Golden Gate. The University of Florida Extension Services office in Collier County maintains an excellent Master Gardeners program. Should a site be demolished and eligible for re- use, Housing and Human Service would look to partner with the Master Gardeners, under the direction of the Horticulture Agent and with the Golden Gate Civic Association with the intent of creating and maintaining a community garden. Deconstruction During the initial stages of the Collier County NSP1, it has been observed that many of the homes acquired for redevelopment contain salvageable materials. While the County may seek to replace materials in an effort to make the home more attractive to a prospective purchaser, those replaced materials may be suitable for re -use by outside agencies and /or other social service departments within Collier County. As such, when possible, Collier County will attempt to salvage useable materials from acquired properties and make them available for alternative uses. While implementing NSP1 and CDBG funded redevelopment activities, Housing and Human Services has identified a number of appliances that were replaced in the newly rehabilitated unit. While the appliances that were removed and replaced are often older, they are generally still in good working order. As such, a process has been implemented whereby any appliances removed and replaced are cleaned and tested. Once confirmed that they are in good working condition, an inventory list is provided to Housing and Human Services. Once the inventory list has been created, Housing and Human Services has been able to provide the appliances to social service clients and low income seniors throughout the County. 6. Rating Factor 6: Neighborhood transformation and economic opportunity (5 points) Listed below are the Goals, Objectives and Policies of the Collier County Growth Management Plan (hereinafter, "GMP ") supporting neighborhood stabilization (acquisition, rehabilitation and sell /rent foreclosed properties to income qualified persons) in response to the following condition: (1) certify that your proposed NSP activities are part of or consistent with an established comprehensive, regional, or multi jurisdiction plan, such as transportation, sustainable development, economic revitalization, or floodplain management plan (you should not submit the plan, but provide a web address or sufficient information so that HUD may otherwise obtain a copy of the plan from the authoring agency) Need Factor Application Number: 985439843 Agenda Item No. 16D10 July 28, 2009 Page 3j4of 56 The GMP Goals, Objectives and Policies provided may be obtained online from the following link: http: / /www.colliergov .net /index.aspx ?page =257. The elements are listed beginning with the most relevant, in particular the GMP Housing Element. It is recommended to pay particular attention to Housing Element Objectives 3 & 8 and Policies 2.10, 8.1, & 8.4; these speak directly to rehabilitation of housing stock, emphasis added. Housing Element GOAL 1: To create an adequate supply of decent, safe, sanitary, and affordable housing for all residents of Collier County. OBJECTIVE 1: The number of new affordable- workforce housing units shall increase by at least fifteen percent of the units approved to be built in the County per year, but not less than 1,000 units per year averaged over a five -year period in an effort to continue meeting the current and future housing needs of legal residents with very -low, low and moderate incomes, including households with special needs such as rural and farmworker housing in rural Collier County. OBJECTIVE 2: The Collier County Board of County Commissioners aided in the establishment of the Collier County Housing Development Corporation in 2003. The mission of the Housing Development Corporation is to serve as a non - profit agency, with an executive board made up of representatives from business, government, housing advocates, and the community at large, which along with other not for profit agencies shall assist Collier County and its municipalities in achieving a goal of increasing the number of affordable- workforce housing units by at least fifteen percent of the units approved to be built in the County per year, but not less than 1,000 units per year averaged over a five -year period for very -low, low and moderate income residents of Collier County. Policy 2.10: The Collier County Operations Support and Housing Department shall continue to operate affordable- workforce housing programs, in cooperation with public and private sponsors, to provide safe, affordable- workforce housing to residents of the County's urban designated areas and rural areas. Programs operated by the Department will continue to include, but are not limited to: • Impact fee deferrals • Housing rehabilitation and emergency repairs • Down payment and closing cost assistance OBJECTIVE 3: Collier County shall continue to support and adequately fund housing programs to promote the preservation and protection of existing stable residential Need Factor Application Number: 985439843 Agenda Item No. 16D10 July 28, 2009 Page 337$of 56 neighborhoods. This will be accomplished through the utilization of State Housing Incentives Partnership (SHIP) and CDBG programs including, but not limited to, down payment /closing cost assistance, rehabilitation and emergency repair, demolition with new construction, and impact fee deferrals. OBJECTIVE 8: Collier County shall continue to utilize SHIP, CDBG, or other funding sources and, in partnership with Federal, State and non - profit housing agencies, will seek to provide a minimum of 50 rehabilitated or new residential units per year for very low, low and moderate income residents of the Immokalee Urban Area, Rural Fringe Mixed Use District, and within the Rural Lands Stewardship Area. Families benefiting from such housing will include, but not be limited to, farmworkers and other populations with special housing needs. Policy 8.1: Collier County shall continue to pursue the policy of requiring all non- conforming or sub - standard residences of any type within the Immokalee Urban Area to be either rehabilitated to current housing code standards or demolished. Policy 8.4: Funding for rehabilitation of both owner and rental units within the Immokalee Urban and Rural Lands Stewardship Areas will be provided through USDA funding, State SHIP funding, CDBG funding, or other appropriate funding sources, and leveraged with additional funding sources to the maximum degree possible. Immokalee Area Master Plan OBJECTIVE 1.5: The Collier County Board of County Commissioners recognizes the need for farm labor to support the County's agricultural industry and encourages the provision of decent, safe and affordable housing units for farm workers in Immokalee. The provision for farm labor housing, as identified in Section 5.05.03 of the Collier County Land Development Code, complies with Section 10D -25 of the Florida Administrative Code (F.A.C.). GOAL 2: Create an environment within which all working, disabled and retired residents, and their immediate families, will have a reasonable opportunity to procure safe, sanitary, and affordable housing consistent with the desired character of the area as identified in the Immokalee Area Master Plan. OBJECTIVE 2.1: Collier County shall promote the conservation and rehabilitation of housing in Immokalee neighborhoods. Need Factor Application Number: 985439843 Agenda Item No. 16D10 July 28, 2009 Page 3%of 56 Policy 2.2.1: The County Operations Support and Housing Department will analyze the data collected from the Immokalee Housing Initiative Program Survey and establish a process for revitalizing Immokalee's neighborhoods. Policy 2.2.2: The County shall continue to research initiatives such as land banking of foreclosed upon land due to County held liens, land grants from County and other public holdings, and tax incentives for private owners who commit to developing affordable - workforce housing. OBJECTIVE 2.3: The County will continue to explore and provide innovative programs and regulatory reforms that reduce the costs of development and maintenance of safe and sanitary affordable - workforce housing for Immokalee residents. Policy 2.3.2: The County Operations Support and Housing Department will continue to promote public /private partnerships that address the availability of affordable - workforce housing by improving existing processes and implementing new processes of networking resources among private developers, contractors, County officials, and Immokalee residents seeking housing. Policy 2.3.3: The Code Enforcement Department will prioritize the enforcement of codes related to substandard housing that constitutes a serious threat to the public's health, safety and welfare. Policies on demolition of such structures will be enforced and the Code Enforcement Board used to levy appropriate fines. Policy 2.3.4: The Community Development and Environmental Services Division will research and develop strategies to replace and /or provide affordable- workforce housing through non - profit providers throughout the immokalee Community Redevelopment Area. OBJECTIVE 2.4: There shall be an annual effort to coordinate with federal, state, local and private agencies to seek funding to meet the housing needs as identified in the Housing Element of the Growth Management Plan and to assure consistency with federal, state and local regulations concerning migrant labor camps. Golden Gate Area Master Plan OBJECTIVE 1.4: Through the enforcement of the Land Development Code and the housing and building codes, Collier County shall continue to provide a living environment within the Golden Gate Area, which is aesthetically acceptable and enhances quality of life. Need Factor Application Number: 985439843 Agenda Item No. 16D10 July 28, 2009 Page 2Pof 56 Policy 4.1.1: By 2006, Collier County shall develop an implementation schedule for the creation of a community - planning program for Golden Gate City. The implementation schedule shall take into consideration the following issues: a) Affordable housing based upon home ownership; b) Commercial re- vitalization, to include: i. Sidewalks ii. Traffic calming measures iii. Improved street lighting; c) Neighborhood parks, open space and recreational centers; d) Crime reduction; e) Consistent enforcement of land development regulations; and, f) Improved lighting for streets and parking areas. Economic Element Policy 1.9: Collier County, in response to the current and projected needs of its residents, will encourage a diverse mix of housing types, sizes, prices, and rents. Future Land Use Element Policy 4.2: A detailed Master Plan for the Immokalee Urban designated area has been developed and was incorporated into this Growth Management Plan in February, 1991. Major revisions were adopted in 1997 following the 1996 Evaluation and Appraisal Report. The Immokalee Area Master Plan addresses conservation, future land use, population, recreation, transportation, housing, and the local economy. Major purposes of the Master Plan are coordination of land uses and transportation planning, redevelopment or renewal of blighted areas, and the promotion of economic development. END Need Factor Application Number: 985439843 Agenda Item No. 161D10 July 28, 2009 Page 40 of 56 Appendix - Target Geography Collier County, Florida Census Tract Foreclosure Needs Index Score Vacancy Risk Index Score Max Index Score 0104.06 20 12 20 0104.08 19 16 19 0104.01 19 16 19 0102.03 19 19 19 0105.03 20 18 20 0105.04 20 19 20 0106.02 19 15 19 0106.01 19 19 19 0106.04 19 15 19 0106.03 20 16 20 0105.02 20 17 20 0108.01 19 18 19 0107.02 19 14 19 0108.02 20 8 20 0104.11 20 15 20 0104.09 20 18 20 0104.10 20 19 20 0104.14 20 1 20 0104.13 20 1 20 0108.03 19 1 19 0111.01 20 1 20 0109.01 20 18 20 0109.03 20 12 20 0104.12 20 1 20 0112.04 20 17 20 0113.00 20 9 20 0112.02 20 1 20 0114.00 20 13 20 0104.07 20 1 20 0104.05 20 16 20 0102.02 20 1 20 0003.01 18 18 18 0102.04 20 16 20 0101.04 20 7 20 0101.03 20 1 20 Average Max Score 19.69 Qualified Agenda Item No. 16D10 July 28, 2009 Page 41 of 56 Appendix — Definitions & Standards Collier County, Florida Definition of "blighted structure" A structure is blighted with it exhibits objectively determinable signs of deterioration sufficient to constitute a threat to human health, safety and public welfare. Definition of "affordable rents" The maximum allowable rents shall not exceed the Fair Market Rents (FMR) as published annually by the US Department of Housing and Urban Development for the Naples — Marco Island MSA. The current rates are listed below. Final FY 2009 FMRs By Unit Bedrooms Efficiency One - Bedroom Two - Bedroom Three- Bedroom Four- Bedroom Final FY 2009 FMR $ 868 $ 995 $ 1,120 $ 1,392 $ 1,449 Description of housing rehabilitation standards Collier County will require that all properties funded for the purpose of NSP2 housing construction will met the accessibility standards at 24 CFR part 8, that the property will be energy efficient and incorporate cost effective green improvements. Furthermore, the following policies apply to NSP2 rehabilitation activities: 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 by the Collier County Purchasing Policy. 3. Once complete, all rehabilitated properties must meet HUD Section 8 Minimum Housing Quality Standards and applicable Florida Building Codes. 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. 5. 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 Agenda Item No. 16D10 July 28, 2009 Page 42 of 56 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. Appendix — Public Comments Collier County, Florida Public Comment #1 Received: July 12, 2009 From: Michele Klinowski Sent Via: Email Agenda Item No. 16D10 July 28, 2009 Page 43 of 56 Summary: As Vice President of the Greater Naples Chamber of Commerce, this public comment wishes the County the best of luck in securing additional funding under NSP2. Collier County appreciates the support and kind words of Ms. Klinowski. Public Comment #2 Received: July 14, 2009 From: John Barlow Sent Via: Email Summary: This public comment requests clarification on the amount of down payment assistance available using NSP2 funds, if State Housing Initiatives Partnership (SHIP) program funds will be available for houses assisted with NSP2 and if the discount from appraised value has been changed to 1 %. Additionally, this public comment would like further information on our expected rehabilitation costs, amount of subsidy left in assisted properties and the current status of the Collier County NSP1. Collier County staff members have scheduled a meeting with Mr. Barlow to address all questions presented. A copy of the Collier County Neighborhood Stabilization Program 2 application is posted on the following website: http: / /www.colliergov .net /Index.aspx ?page =105 Agenda Item No. 16D10 July 28; 2009 Page 44 of 56 Special Considerations Related to the American Recovery and Reinvestment Act (ARRA) of 2009 Neighborhood Stabilization Program 2 CFDA 14.256 Since the source of funds for this program is the American Recovery and Reinvestment Act (ARRA), additional considerations are necessary to ensure the use of funds properly implements the purpose of the Act. Generally, grantees are required to ensure that public funds are expended responsibly and in a transparent manner to further the job creation, economic recovery, and other purposes of the Recovery Act. The following table identifies the general requirements, including reporting requirements and an indication of how each requirement will be met. General ARRA Considerations Consideration Compliance Requirement Collier County Preparations and Ability to Maintain Compliance Duration of funding Each recipient will have two (2) years Housing and Human Services will provide to expend 50 percent of its allocated adequate staff to support the timely use of NSP2 NSP2 funds and three (3) years to funds awarded. Management will monitor expend all of its allocated NSP2 funds expenditure reports to ensure sufficient progress from the time HUD signs its NSP2 to achieve, and to expend all funds as required grant agreement. by the NSP2. Funding restrictions The following funding restrictions Housing and Human Services is successfully apply to NSP2: administering the NSP1 grant under the same 1. No more than 10 percent of an funding restrictions. Income restrictions are NSP2 award may assist common funding restrictions or both federal and demolition of housing unless state grants. As such, Housing and Human an exception is approved by Services is well equipped to ensure that eligible HUD: and activities funded under NSP2 benefit eligible 2. All NSP2 funds must provide persons. benefit to persons whose income does not exceed 120 In addition to the HUD required reporting and percent of area median monitoring requirements (details below), income. and Housing and Human Services regularly 3. Notwithstanding the maintains tracking spreadsheets and monitoring requirement of (2), 25 percent reports for all state and federally fund grant of each grant must be used for activities. the purchase and redevelopment of abandoned or foreclosed upon homes or residential properties that will be used to house individuals or families whose incomes do not exceed 50 percent area median income. Wage rate All contractors and subcontractors Housing and Human Services must adhere to the requirement hired with Recovery Act funds are requirements of the Davis -Bacon Act as part of required to pay prevailing wages to administering other federally fund grant laborers and mechanics in compliance activities. Staff is trained and proficient in with the Davis -Bacon Act. satisfying the wage rate requirements associated with grant funded projects and shall ensure such controls are placed on activities funded under NSP2. Reporting Each recipient must submit a quarterly Housing and Human Services is in the process requirements report, as HUD prescribes, no later than I of using the HUD required web -based reporting ten (10) days following the end of each quarter, beginning ten (10) days after the completion of the first full calendar quarter after grant award. In addition to this quarterly performance reporting, each recipient will report monthly on its NSP2 obligations and expenditures beginning ten (10) days after the end of the 21' month following receipt of funds, an continuing until reported total expenditures are equal to or greater than half the total NSP2 grant. Once HUD has accepted a report, the monthly reporting requirement will end and quarterly reports will continue until the 33`d month, when the monthly cycle will repeat until the entire NSP2 grant has been expended or the 36 -month deadline is reached. Each report will include information about the uses of funds, including, but not limited to: 1. Project name; and 2. Activity; and 3. Location; and 4. National objective; and 5. Funds budgeted and expended;and 6. Number of properties and housing units; and 7. Beginning and ending dates of activities; and 8. Number of low- and moderate- income persons or households benefiting. Agenda Item No. 16D10 July 28, 2009 Page 45 of 56 system DRGR as part of the NSP1. HUD wil provide additional guidance on meeting this statutorily required reporting after awards are announced. Housing and Human Services will coordinate with the Grants Office to ensure appropriate central reporting processes are followed, which will at a minimum entail reporting of progress and any concerns, delays or other compliance issues to maintain a high degree of transparency and accountability. Aaenda Item No. 16D10 July 28, 2009 Page 46 of 56 Furthermore, programs funded with ARRA funding may develop grant specific compliance requirements that are above and beyond those of normal grant program requirements (for programs already in existence) or above and beyond normal operations of the grantee (including new grant programs as well). Grant specific compliance requirements are listed below: ARRA HPRP Grant Pro ram Specific Considerations Consideration Compliance Requirement Collier County Preparations and Ability to Maintain Compliance Data collection and Reports must be submitted using Housing and Human Services will submit all reporting HUD's web -based DRGR system and, required reports using HUD's web -based DRGR at the time of submission, be posted system. Any properly procured sub - grantee will prominently on the recipients' official be required, as a condition or award, to provide website. data necessary to complete required reports in a timely manner. Administrative Services Division Collier County Government Center 3301 East Tamiami Trail Naples, Florida 34112 marlenefoord ,eolliergov.net (239) 252 -4768 (239) 252 -8720 (fax) TO: Leo Ochs, Deputy County Manager Jim Mudd, County Manager CC: Marcy Krumbine, HHS Director FROM: Marlene Foo drants Coordinator DATE: July 14, 2009 Agenda Item No. 16D10 July 26, 2009 Page 47 of 56 Applications Reviewe4and by County Ter, submittCouAfter- the -FaCf Appr� required at the July 28, 2009 BCC meeting. SUBJECT: County Manager Review and Approval of the Neighborhood Stabilization Program (Stimulus Competitive Funding) Grant Application to the US Department of Housing and Urban Development (HUD) The Collier County Housing and Human Services (HHS) Department is submitting a Neighborhood Stabilization Program grant application to the United States Department of Housing and Urban Development. This program is the considered the "competitive" NSP and is funded by American Recovery and Reinvestment Act of 2009 (ARRA) funds. This program funds the activities outlined in Division B, Title III of the Housing and Economic RecoveryAct of 2008 (HERA) for purposes of assisting in the redevelopment of abandoned and foreclosed homes. HHS is currently implementing the NSP program that provided formula funding to Collier County in the amount of $7,306,755. This program is referred to as NSPI. The new program is referred to as NSP2 and is also a component of the Community Development Block Grant (CDBG) Program. Applicants must request a minimum of S5 million and programs must have the effect of either returning a minimum of 100 abandoned or foreclosed homes back to productive use or otherwise eliminating or mitigating their negative effects on the stability of the target geography. HHS's application requests funding in the amount of $10 million dollars. While HHS has significant experience with CDBG and recent experience with the NSPI program, NSP2 is very competitive and the application requirements are extensive. Due to the reduced schedule for Board of County Commissioners meetings during the summer months and the time involved in preparing application materials, HHS was not able to request for Board of County Commissioners approval before the July 17, 2009 deadline. Therefore, your review and approval is requested to be followed by after- the -fact approval at the July 28, 2009 meeting. This application requires a signature on the Appendix — Certifications and Form SF -424. Once you have reviewed and signed these documents, please call me at 252 -4768 or Frank Ramsey at 252-23' )6 for pickup. Thank you and please let me know if you have any questions regarding this application. 441 Agenda Item No. 16D10 July 28, 2009 Page 48 of 56 OMB Number: 4040 -0004 Expiration Date: 01/31/2009 Application for Federal Assistance SF-424 Version 02 "1, Type of Submission: '2. Type of Application If Revision, select appropriate letter(s) ❑ Preapplication IN New W Application ❑ Continuation `Other (Specify) ❑ Changed /Corrected Application ❑ Revision 3. Date Received: 4. Applicant Identifier: 5a. Federal Entity Identifier: '5b. Federal Award Identifier: State Use Only: 6. Date Received by State: 7. State Application Identifier: 8. APPLICANT INFORMATION: *a. Legal Name: Colder County Board of County Commissioners "b. Employer(Taxpayer Identification Number (EIN/TIN): c. Organizational DUNS: 59- 6000558 076997790 d. Address: 'Street 1: 3301 Tamiami Trail East Street 2: "City: Naples County: Collier `State: Florida Province: 'Country: United States of America `Zip / Postal Code 34112 e. Organizational Unit: Department Name: Housing and Human Services Division Name: Public Services f. Name and contact information of person to be contacted on matters involving this application: Prefix: Ms. `First Name: Marcy Middle Name: 'Last Name: Krumbine Suffix: Title: Director Organizational Affiliation: Collier County Department of Housing and Human Services *Telephone Number: 239 - 252 -4663 Fax Number: 239- 252 -6542 *Email: marcykrumbine @colliergov.net Agenda Item No. 16D10 July 28, 2009 Page 49 of 56 OMB Number: 4040 -0004 Expiration Date: 01/31/2009 Application for Federal Assistance SF-424 version 02 *9. Type of Applicant 1: Select Applicant Type: B. County Government Type of Applicant 2: Select Applicant Type: Type of Applicant 3: Select Applicant Type: *Other (Specify) *10 Name of Federal Agency: 11. Catalog of Federal Domestic Assistance Number: 14.256 CFDA Title: Neighborhood Stabilization Stimulus Program (Competitive) *12 Funding Opportunity Number: *Title: 13. Competition Identification Number: Title: 14. Areas Affected by Project (Cities, Counties, States, etc.): Collier County, Florida *15. Descriptive Title of Applicant's Project: Neighborhood Stabilization Stimulus Program (Competitive) (NSP2) Application Agenda Item No. 16D10 July 28, 2009 Page 50 of 56 OMB Number: 4040 -0004 Expiration Date: 01/1/2009 Application for Federal Assistance SF-424 Version 02 16. Congressional Districts Of: *a. Applicant: 14 *b. Program /Project: 14 17. Proposed Project: *a. Start Date: October 1, 2009 *b. End Date: September 30, 2012 18. Estimated Funding ($): *a. Federal $10,000,000.00 *b. Applicant *c. State *d. Local *e. Other *f. Program Income *g. TOTAL $10,000,000.00 *19. Is Application Subject to Review By State Under Executive Order 12372 Process? ❑ a. This application was made available to the State under the Executive Order 12372 Process for review on ❑ b. Program is subject to E.O. 12372 but has not been selected by the State for review. c. Program is not covered by E. O. 12372 *20. Is the Applicant Delinquent On Any Federal Debt? (If "Yes ", provide explanation.) ❑ Yes 9 No 21. *By signing this application, I certify (1) to the statements contained in the list of certifications— and (2) that the statements herein are true, complete and accurate to the best of my knowledge. I also provide the required assurances ** and agree to comply with any resulting terms if I accept an award. I am aware that any false, fictitious, or fraudulent statements or claims may subject me to criminal, civil, or administrative penalties. (U. S. Code, Title 218, Section 1001) © * *IAGREE ** The list of certifications and assurances, or an internet site where you may obtain this list, is contained in the announcement or agency specific instructions Authorized Representative: Prefix: Mr. *First Name: James Middle Name: V. *Last Name: Mudd Agenda Item No. 161D10 July 28, 2009 Page 51 of 56 Suffix: `Title: County Manager `Telephone Number: 239 -252 -4663 Fax Number: 239- 252 -6542 Email: jamesmudd @colliergov.net "Signature of Authorized Representative: "Date Signed: Standard Form 424 Revised 1012005) Authorized for Local Reproduction � Prescribed by OMB Circular A -102 Agenda Item No. 16D10 july 28, 2009 Page 52 of 56 OMB Number: 4040 -0004 Expiration Date: 01/31/2009 Application for Federal Assistance SF-424 version 02 I Agenda Item No. 161D10 July 28, 2009 Page 53 of 56 *Applicant Federal Debt Delinquency Explanation The following should contain an explanation if the Applicant organization is delinquent of any Federal Debt. Agenda Item No. 16Q10 July 28, 2009 Page 54 of 56 Appendix — Certifications Collier County, Florida 1. Affirmatively furthering fair housing. The applicant certifies that it will affirmatively further fair housing, which means that it will conduct an analysis to identify impediments to fair housing choice within the jurisdiction, take appropriate actions to overcome the effects of any impediments identified through that analysis, and maintain records reflecting the analysis and actions in this regard. 2. Anti - displacement and relocation plan. The applicant certifies that it has in effect and is following a residential anti - displacement and relocation assistance plan. 3. Anti - lobbying. The applicant must submit a certification with regard to compliance with restrictions on lobbying required by 24 CFR part 87, together with disclosure forms, if required by that part. 4. Authority of applicant. The applicant certifies that it possesses the legal authority to carry out the programs for which it is seeking funding, in accordance with applicable HUD regulations and other program requirements. 5. Acquisition and relocation. The applicant certifies that it will comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (42 U.S.C. 4601), and implementing regulations at 49 CFR part 24, except as those provisions are modified by the notice for the NSP2 program published by HUD. 6. Section 3. The applicant certifies that it will comply with section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u), and implementing regulations at 24 CFR part 135. 7. Citizen participation. The applicant certifies that it is carrying out citizen participation in accordance with NSP2 requirements. 8. Use of funds. The jurisdiction certifies that it will comply with Title III of Division B of the Housing and Economic Recovery Act of 2008, as modified by the American Reinvestment and Recovery Act by spending 50 percent of its grant funds within 2 years, and spending 100 percent within 3 years, of receipt of the grant. 9. The applicant certifies: a) That all of the NSP 2 funds made available to it will be used with respect to individuals and families whose incomes do not exceed 120 percent of area median income; and b) The applicant will not attempt to recover any capital costs of public improvements assisted with CDBG funds, including Section 108 loan guaranteed funds, by assessing any amount against properties owned and occupied by persons of low- and moderate - income, including any Agenda Item No. 16D10 July 28, 2009 Page 55 of 56 fee charged or assessment made as a condition of obtaining access to such public improvements. However, if NSP funds are used to pay the proportion of a fee or assessment attributable to the capital costs of public improvements (assisted in part with NSP funds) financed from other revenue sources, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG funds. In addition, with respect to properties owned and occupied by moderate - income (but not low income) families, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than NSP funds if the jurisdiction certifies that it lacks NSP or CDBG funds to cover the assessment. 10. Excessive force. The applicant, if an applicable governmental entity, certifies that it has adopted and is enforcing: a) A policy prohibiting the excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in nonviolent civil rights demonstrations; and b) A policy of enforcing applicable state and local laws against physically barring entrance to, or exit from, a facility or location that is the subject of such nonviolent civil rights demonstrations within its jurisdiction. 11. Compliance with anti - discrimination laws. The applicant certifies that the NSP grant will be conducted and administered in conformity with Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d), the Fair Housing Act (42 U.S.C. 3601- 3619), and implementing regulations. 12. Compliance with lead -based paint procedures. The applicant certifies that its activities concerning lead -based paint will comply with the requirements of 24 CFR part 35, subparts A, B, J, K, and R. 13. Compliance with laws. The applicant certifies that it will comply with applicable laws. 14. This NSP2 proposal is in compliance with Collier County's Comprehensive Plan. Signature /Authorized Official James V Mudd County Manager Page IofI Agenda Item No. 16D10 July 28, 2009 Page 56 of 56 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS Item Number: 16D10 Item Summary: Recommendation that the Board of County Commissioners provides after - the -fact approval for submission of the Neighborhood Stabilization Program 2 application to the U.S. Department cf Housing and Urban Development for funding under the American Recovery and Reinvestment Act of 2009 in the amount of $10.000.000. Meeting Date: 7!2812009 9:0000 AM Prepared By Frank Ramsey SHIP Program Coordinator Date Public Services Housing and Human Services 7/13/2009 5:08:08 PM Approved By Kathy Carpenter Executive Secretary Date Public Services Public Services Admin. 711412009 8:20 AM Approved By Marcv Krumbine Director Date Public Services Housing & Human Services 7114/2009 12:14 PM Approved By Colleen Greene Assistant County Attorner Date County Attorney County Attorney Office 711412009 4:05 PM Approved By Marlene J. Foord Grants Coordinator Date Administrative Services Administrative Services Admin. 711412009 4:39 PM Approved By Marla Ramsey Public Services Administrator Date Public Services Public Services Admin. 7/1512009 1:08 PM Approved By OMB Coordinator OMB Coordinator Date County Manager's Office Office of Management & Budget 7115,2009 2:41 PM Approved By Je,` Klatzkow County Attorney Date County Attorney County Attorney Office 7/16/2009 7:10 AM Approved By Sherry Pryor Management & Budget Analyst Date County Manager's Office Office of Management & Budget 7/16/2009 2:26 PM Approved By Leo E. Ochs, Jr. Deputy County Manager Date Board of County County Manager's Office 7/16/2009 5:27 PM Commissioners file: / /C: \AgendaTest \Export\ 133 -July %2028, %202009\ 16. %2000NSENT %20AGEN DA\ 1... 7/22/2009