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Agenda 12/01/2009 Item #10A Agenda Item No. 10A December 1, 2009 Page 1 of 4 EXECUTIVE SUMMARY Recommendation to authorize a review of the current Affordable Housing Impact Fee Deferral Program and to direct staff on future actions OBJECTIVE: To consider the current and future status of the Affordable Housing Impact Fee Delerral Program and to solicit Board guidance on future actions. CONSIDERATIONS: Article IV of Chapter 74 of the Code of Laws and Ordinances established a program to defer the payment of the impact fee for any new owner-occupied or rental development which qualifies as affordahle housing. The aggregate amount of impact fee deferrals granted pursuant to this program is limited, in total, to an amount not exceeding three (3) percent of the previous years' total impact fee collections. Furthennore, the aggregate amount of impact fee delerrals granted for rental developments is limited, in total, to 225 units per fiscal year with no rollover offunding. For FYI 0, a total of $603,112 in owner-occupierl impact fees are eligible for deferral, as well as a total of $187,500 for the defcnnent of water and sewer system impact fees. CUITently, staff has reccived a total of thiliy-six (36) eligible rcquests for the deferral of impact fees. These requests, in total, would defer $390,098.23 in general impact fees and $141,400 in watcr and sewer system impact fees. If approved, the funds remaining for additional deferrals for FYIO would be $213,013.77 (general) and $46, I 00 (water/sewer). O"~', In recognition of the adverse revenue position of cUITent impact fee collections and a downward adjustment in the local real estate market, changes to the Affordable Housing Impact Fee Deferral Program may be advisable. The following options have been developed for Board consideration. Option One Suspend or eliminate the Alfordable Housing Impact Fee Deferral Program. CUITently, no fimds allocated for defen'a! ofFYIO impact fees have been awarded. Suspension or elimination of the program may result in the collcction of $603, 112 that would otherwise have been eligible for deferral. Additionally, $187,500 in funds set aside for water and sewer system deferrals would be available for reallocation. Article IV of Chapter 74 of the Code of Laws and Ordinances does not require the County to approve requests for impact fee deferral. As such, a temporary suspension would require no additional Board action. Indetinite suspension or elimination of the program may be implemented by arnending the existing ordinance to allow the Board of County Commissioners to suspend or eliminate the program by resolution. Alternatively, the Board of County Commissioners may choose to repeal the existing ordinance in its entirety. , ~", Option Two - StaflRecommelldalioll Approve the thirty-six (36) applications received and temporarily suspend the Affordable Housing Impact Fee DefeITal Program as described above. Selection of this option may result in the collection of $213,013.77 that would otherwise have been eligible for defeITal. Additionally, $46.100 in funds set aside for water and sewer system deferrals would be available for reallocation. Approval of the thiliy-six (36) applications received would defer the impact fees for sixteen (16) units in ImJl10kalee and twenty (20) units in Naples being developed by HabiLat for Humanity of Collier County. The aforementioned eligIble applications appear as ".........,.,..., Agenda Item NO.1 OA December 1 , 2009 Page 2 of 4 a s"parate item on today's agenda should the Bo~rd decide to approve the deferrals. Approval of this option will fulfill the County's commitment to the aforementioned projects and direct the County Manager to refer the existin~ ordinance [0 the Atfordablc lIousing Advisory Committee for review and subsequent recommended changes (if any) at a future Board meeting. Option Three Make no change to the Affordable Housing Impact Fee Delerral Program for FYIO. This option would defer $603,112 in general impact fees and expend the $187,500 allocated for the deferral of water and sewer system fees. FISCAL IMPACT: Dependent on the direction of the Board of County Commissioners. GROWTH MANAGEMENT IMPACT: None. LEGAL CONSIDERATIONS: This is a policy decision for the Board. The County Attorney will work with staffto implement Board direction. - .lAK STAFF RECOMMENDATION: Statf recommends approval of option two approving the thirty-six (36) applications cUlTently in process, temporarily suspending the Atfordable Housing Impact Fee Deferral Program and referring the existing ordinance to the Affordable Housing Advisory Committee for review and subsequent recommended changes (if any) at a future Board meeting. PREPARED BY: Frank Ramsey, Housing Manager, Housing and Human Services . Agenda Item No. 10A December 1, 2009 Page 3 of4 ,"" COLLiER COUNTY BOARD OF COUNTY COMMISSIONERS item Number: Item Summary: 10A Recommendation to authorize 3 review ot the current Affordable Housing Impact Fee Deferral Program and to direct staff on future actJons. (Marcy Krumbine, Housing and Human Services Director) Meeting D.!~: 12/1120099:00:00 AM Prepared By Frank Ramsey Manager w Housing Development Date Public Services Division Human Services 1116120092:12:16 PM Approved By . Marcy Krumbine Director ~ Housing & Human Services Date Public Services Division Human Services 11191200911 :55 AM Approved By Kathy Carpenter Executive Secretary Date Public Services Public Services Admin. 11191200912:00 PM Approved By ". Amy Patterson Manager - Impact Fees & EDe Date Community Development & Environmental Services Business Management & Budget Office 11112/20093:39 PM Approved By Marla Ramsey Administrator - Public Services Date Public Services Division Public Servi.ces Division 11/131200912:24 PM Approved By Colleen Greene Assistant County Attorney Date County Attorney County Attorney 11116/200911:04 AM Approved By OMS Coordinator Date County Attorney County Attorney 11/17120098:52 AM Approved By Jeff Klatzkow County Attorney Date 11/17120092:55 PM Approved By m.~ Sherry Pryor ManagementJ Budget Analyst, Senior Date Office of Management & Budget Office of Management & Budget 11/17/20098:41 PM ~-- --,..., .,........,,-...- Agenda Item No. 10A December 1. 2009 Page 4 of 4 Approved By John A. Yonkosky Office of Management & Budget Director - Man2lgef'l"lent ,'H1r::! 8udget Date Office of Management &. BUdget 11/19/20092:15 PM