Loading...
Agenda 10/22/2019 Item #11J (Local Affordable Housing Trust Fund Guidelines)10/22/2019 EXECUTIVE SUMMARY Recommendation to approve the guidelines, criteria, annual work plan, associated policy, and Resolution for the local affordable housing trust fund and authorize implementation of the program. OBJECTIVE: To implement Resolution 2018-82 to help facilitate the development of housing that is affordable for very low to gap income residents in Collier County through the use of the Housing Trust Fund (“HTF”). CONSIDERATIONS: On October 25, 2017, the Board of County Commissioners accepted the Community Housing Plan that was developed in 2016-2017 in conjunction with the Urban Land Institute (“ULI”) visit and the work of community stakeholders and the Community and Human Services (“CHS”) Division. Of the multitude of recommendations that the Board accepted was the establishment of a new local housing trust fund. On April 24, 2018, the Board approved Resolution No. 2018-82 (Agenda Item #11A), adopting the Local HTF and setting forth its Purpose and Applicability. The Resolution tasked the County’s Affordable Housing Advisory Committee (“AHAC”) to work with staff to develop criteria for evaluating the appropriate mix of very low, low, moderate, and gap income housing to qualify for an award of HTF funds. The Housing Trust Fund account is eligible to receive deposits from the sale of County surplus property, repayments of Affordable Housing Density Bonus units, donations, and defined revenue streams. Up to ten percent (10%) of the funds may be used to cover administrative expenses associated with the implementation and oversight of the fund. An AHAC sub-committee was formed in June 2019 and met for three (3) months to develop the HTF Guidelines and Competitive Evaluation Criteria, provided herein. During the development of the criteria, the lack of a dedicated recurring revenue source for the HTF was identified as a major concern to the AHAC membership. Members of the committee expressed a compelling need to identify and increase the funds available in order to provide viable and effective housing initiatives. In accordance with Resolution 2018-82, the criteria and applicability developed by the AHAC will be established by a policy of the Board and may be amended from time to time by the Board. In addition, the Board shall approve an annual work plan, review the estimated balance of funds, categories and programs, and establish an application and award process for the operation of the HTF. Resolution. 2018-82 outlines the following eight (8) categories as eligible uses of Housing Trust Funds: • Down Payment Assistance • Impact Fee Relief • Land Acquisition • Construction & development loans • Community Land Trust • Preserve Existing Affordable Housing supply (acquisition/rehabilitation) • Rental Assistance • Local Contribution for Tax Credit or SAIL applications In accordance with the resolution, the above list is not exhaustive, and the Board may add or remove housing initiatives. 11.J Packet Pg. 872 10/22/2019 As of September 23, 2019, there was $164,800.86 available in the fund to allocate to housing activities. The attached Resolution authorizes the County Manager to sign commitment documents for HTF resources, and state and federal grants; authorizes the AHAC to identify and research potential funding sources and bring recommendations to the Board; and begin implementation of the HTF program in 2020. FISCAL IMPACT: Local Housing Trust Fund dollars are available in Housing Grant Fund (116), Project (50137). LEGAL CONSIDERATIONS: This item is approved for form and legality and requires a majority vote for Board approval. - JAB GROWTH MANAGEMENT IMPACT: Funds placed in the Housing Trust Fund can assist the County in addressing some of the goals and objectives of the Housing Element of the Growth Management Plan. RECOMMENDATION: To approve the guidelines, criteria, annual work plan, associated policy, and Resolution for the local affordable housing trust fund and authorize implementation of the program. Prepared By: Susan Golden, Senior Grants and Housing Coordinator; Community and Human Services Division ATTACHMENT(S) 1. Guidelines - Collier County Housing Trust Fund 9.25.19 ks-cg (DOCX) 2. HTF Evaluation Criteria 9.25.19 cg-ks (DOCX) 3. HTF Work Plan 9.20.19 (DOCX) 4. 2018-19 Affordable Housing Trust Fund Fiscal Report (XLSX) 5. HTF Resolution 2019 CAO Stamped (PDF) 11.J Packet Pg. 873 10/22/2019 COLLIER COUNTY Board of County Commissioners Item Number: 11.J Doc ID: 10257 Item Summary: Recommendation to approve the guidelines, criteria, annual work plan, associated policy, and Resolution for the local affordable housing trust fund and authorize implementation of the program. (Cormac Giblin, Community and Human Services Manager) Meeting Date: 10/22/2019 Prepared by: Title: – Community & Human Services Name: Susan Golden 09/23/2019 3:46 PM Submitted by: Title: Manager - Federal/State Grants Operation – Community & Human Services Name: Kristi Sonntag 09/23/2019 3:46 PM Approved By: Review: Community & Human Services Cormac Giblin Additional Reviewer Completed 09/25/2019 12:48 PM Community & Human Services Akiko Woods Additional Reviewer Completed 09/25/2019 3:15 PM Community & Human Services Kristi Sonntag CHS Review Completed 09/27/2019 9:45 AM Community & Human Services Maggie Lopez Additional Reviewer Completed 10/01/2019 1:13 PM Public Services Department Kimberley Grant Level 1 Reviewer Completed 10/08/2019 9:27 AM Public Services Department Todd Henry Level 1 Division Reviewer Completed 10/08/2019 10:23 AM Public Services Department Steve Carnell Level 2 Division Administrator Review Completed 10/08/2019 2:03 PM County Attorney's Office Jennifer Belpedio Level 2 Attorney of Record Review Completed 10/10/2019 11:48 AM Office of Management and Budget Laura Wells Level 3 OMB Gatekeeper Review Completed 10/10/2019 1:02 PM County Attorney's Office Scott Teach Level 3 County Attorney's Office Review Completed 10/10/2019 4:02 PM Grants Therese Stanley Additional Reviewer Completed 10/10/2019 4:20 PM County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 10/12/2019 10:57 AM Board of County Commissioners MaryJo Brock Meeting Pending 10/22/2019 9:00 AM 11.J Packet Pg. 874 Collier County Housing Trust Fund Guidelines 1) Eligible Applicants: • Non-profit and for-project organizations 2) Application Cycle: • There will be an annual competitive grant application cycle for Housing Trust Fund (HTF) funding awards. • An annual workplan will be presented to the BCC in Oct-Nov that details the estimated balance of funds to be made available, along with the eligible categories and programs for application. • The County will accept applications from interested non-profit and for-profit organizations on an annual basis (January-Feb). The annual application cycle will be advertised in the local newspaper, posted on the County’s website, announced via email, and other form of communication and media. 3) Application requirements: • A formal, competitive application process will occur which will identify all required documents, including but not limited to, a proforma, experience and past performance, targeted income categories, leverage contributions, project readiness, cost benefit analysis, and other requirements. • An appointed Review and Ranking Committee will review and score the request for HTF funding. A point system will be established and advertised with the application. • All HTF funded developments are required to provide 10% set-aside for seniors, special needs or veterans populations in accordance with Resolution 2018- 82 and the 2017 Community Housing Plan. • The Housing Demand Model will be the basis for identifying housing needs/priorities to be funded through the trust fund. The Housing Demand Model focuses on specific income categories and is adjusted annually. • The scoring criteria/point system may be adjusted annually to reflect changing community conditions and priorities. • In most cases, the HTF competitive process will utilize existing County or FHFC/SHIP definitions where applicable. • Housing Trust Fund resources will be awarded through an application process or at the County Manager’s discretion. • In an effort to stretch local contributions from the HTF, applicants will be encouraged to leverage HTF resources with State, Federal or other funds. It is understood that all funding sources will not be formally committed at the same time. Therefore, if selected for HTF funding, the leveraged or matched dollars will be documented at a later date in the award process. 4) Forms of Assistance: • Funds are provided as a Deferred Payment Loan at zero percent (0%) interest secured by a recorded subordinate mortgage and promissory note and a land use restriction agreement (LURA). • Maximum per project award is $3 million. 11.J.1 Packet Pg. 875 Attachment: Guidelines - Collier County Housing Trust Fund 9.25.19 ks-cg (10257 : Housing Trust Fund Implementation) 5) Eligible Activities Per Resolution No. 18-82 • Downpayment Assistance • Impact Fee Relief • Land Acquisition • Construction Loans (including development/soft costs) • Community Land Trust • Preserve Existing Affordable Housing Supply (acquisition &/or rehabilitation) • Rental Assistance • Local Contribution for Tax Credit or SAIL applications In accordance with Res. 18-82, the above list is not exhaustive, and the County Commissioners may add or remove alternative affordable housing programs. 9.25.19 11.J.1 Packet Pg. 876 Attachment: Guidelines - Collier County Housing Trust Fund 9.25.19 ks-cg (10257 : Housing Trust Fund Implementation) Housing Trust Fund Criteria 1 Collier County Affordable Housing Trust Fund Competitive Evaluation Criteria 1. Income Targeting: (Maximum 25 Points) The County’s Housing Demand Model documents the projected need for affordable rental units and homeownership by income. The current need is affordable rental housing for Extremely Low to Low Income households, or those earning less than 80% of median area income. Therefore, greater points are awarded to developments proposing to address this need. The Housing Demand Model is adjusted annually and as community needs change the Housing Trust Fund criteria will be evaluated and modified as needed. Income Categories % of Units Provided in Development Weight Credits per Category (% x weight = credits) Total Points Awarded (Credits 25) ELI (<30%) 0 5 0 VLI (<50%) 0 4 0 LI (<80%) 0 3 0 Mod (<120%) 0 2 0 Gap (<140%) 0 1 0 Market Unrestricted 0 0 0 Total Percent 0 Total Credits 0 0 2. Impact on Collier County Priorities: (Maximum 30 Points for Sections a, b & c) The County has identified a number of priorities in the Housing Trust Fund Resolution 18 - 82, the Community Housing Plan, the Housing Element of the Growth Management Plan, the HUD Annual Action Plan and the 3-year SHIP Local Housing Assistance Plan (LHAP). In addition to Income Targeting, additional priorities include the following: a) Special Needs, Seniors & Veterans Set-Aside – Required Minimum 10% per Development - (Maximum 5 Points) Percent of Development Points 11%-20% 2 21% - 30% 3 100% of all units – only allowed in small dev <10 units 5 The County’s Housing Trust Fund will utilize definitions found in Florida State Statutes. In particular, Statutes that pertain to the State Housing Initiatives Partnership Program and other relevant State definitions for veterans, seniors & special needs. The following are from Chapter 420.0004 11.J.2 Packet Pg. 877 Attachment: HTF Evaluation Criteria 9.25.19 cg-ks (10257 : Housing Trust Fund Implementation) Housing Trust Fund Criteria 2 (7) “Disabling condition” means a diagnosable substance abuse disorder, serious mental illness, developmental disability, or chronic physical illness or disability, or the co-occurrence of two or more of these conditions, and a determination that the condition is: (a) Expected to be of long-continued and indefinite duration; and (b) Not expected to impair the ability of the person with special needs to live independently with appropriate supports. (8) “Elderly” describes persons 62 years of age or older. (13) “Person with special needs” means an adult person requiring independent living services in order to maintain housing or develop independent living skills and who has a disabling condition; a young adult formerly in foster care who is eligible for services under s. 409.1451(5); a survivor of domestic violence as defined in s. 741.28; or a person receiving benefits under the Social Security Disability Insurance (SSDI) program or the Supplemental Security Income (SSI) program or from veterans’ disability benefits. b) Affordability Period - (Maximum 10 Points) Collier County will award more points to entities requesting Housing Trust Fund resources who commitment to longer affordability periods or place housing into a Community Land Trust. All developments receiving Housing Trust Fund (HTF) resources will have a land use restriction agreement (LURA) recorded on the property. Affordability Period (LURA) Points 20 Years or less 0 21 to 30 Years 2 31 to 50 Years 5 51 or more Years 8 Community Land Trust 10 c) Additional Community Priorities - (Maximum 15 Points) Mixed Income Development (At least 10% of units in 3 or more income categories) _2__ Points More than one (1) Special Needs population (see 2.a) _2__ Points Mixed Use Commercial/Residential Development or Located in an Activity Center _2__ Points Located adjacent to or w/in ½ mile of CAT bus stop _2__ Points Mixed Occupancy Development (Rental & Ownership) _2__ Points o Rental Housing (only) _2__ Points o Homeownership (only) _1 __ Points Infill Development (10 acres or less) _2__ Points Collaborative Partnership 2 __ Points Local Vendor Preference _1__ Points 11.J.2 Packet Pg. 878 Attachment: HTF Evaluation Criteria 9.25.19 cg-ks (10257 : Housing Trust Fund Implementation) Housing Trust Fund Criteria 3 3. Experience and Organizational Capacity: - (Maximum 20 Points) This category will be evaluated on the basis of the experience of the applicant/development team, and experience in undertaking projects of similar complexity as the one for which funds are being requested. Housing Development, Construction or Management Experience Points 1 to 2 Years 0 3 to 5 Years 3 5 to 10 Years 6 11 or more Years 9 Name of Development Location (City & State) Programs That Provided Financing (Housing Tax Credits, SAIL, SHIP, HOME, Tax-Exempt Bonds, Federal Home Loan Bank, etc) Total Number of Units Year Completed Total number of housing units developed Points 0 to 3 units 0 4 to 20 units 3 21 to 100 units 6 101 + housing units 9 Prior Collier County Experience with Federal or State Grants: Yes ___ No ___ (Max 2 Points) 4. Readiness to Implement: (Maximum 5 Points) This category will be evaluated on the basis of the applicant’s ability to commence the project and expend funds in a timely manner. Category Yes No Points – 1 for each 1. Location/site identified? 1.a. Address: ____________________________ 2. Site Control? 11.J.2 Packet Pg. 879 Attachment: HTF Evaluation Criteria 9.25.19 cg-ks (10257 : Housing Trust Fund Implementation) Housing Trust Fund Criteria 4 3.a. Current Zoning: ___________ 3.b. Zoning Approvals Needed? 4. Identified staff, board members, partners responsible for implementation? 5. Work plan/timeline demonstrates understanding of the obstacles that may be encountered in developing and implementing the project (zoning, permitting, financing, etc)? 6. Has identified other available financial resources needed to implement proposed activity? 7. Readiness to begin construction (Select one) 7.a. <120 business days 7.b <180 business days 7.c >180 business days 5. Financial Feasibility & Sustainability: (Maximum 20 Points) This category will be evaluated by the applicant’s ability to demonstrate their plan to sustain the project; utilize funds and manage them appropriately and leverage multiple sources of funds. A pro-forma is required to be submitted at the time of a Housing Trust Fund application if applicant is requesting acquisition, construction and/or rehabilitation, or local contribution. The pro-forma or financial schedules must be consistent with industry standards, including but not limited to: fees, cost per unit, month rents, expenses, projected revenue, operation costs and depreciation allowances. (5 Points) Complete the following estimated project budget. (5 Points) Activity Vendor (if known) Cost Rezoning Fees Legal Fees Appraisal & Title Search Survey Credit Underwriting Fees, Good Faith Deposit Environmental Assessments, Soil Tests, etc Architectural/Engineering Fees Administrative Expenses Construction/Renovation Estimates Other fees (Show Below) 11.J.2 Packet Pg. 880 Attachment: HTF Evaluation Criteria 9.25.19 cg-ks (10257 : Housing Trust Fund Implementation) Housing Trust Fund Criteria 5 TOTAL Demonstrate through financial statements, audits, or other documents, that the entity has the financial ability to fund the project until reimbursement is received from Collier County HTF. Provide proof of a line of credit, if needed. In an effort to stretch local contributions from the HTF, points will be awarded for the amount of Leverage that the applicant is proposing. It is understood that all funding sources will not be formally committed to a housing development at the same time . Identify potential funding sources and the amount of funding requested at the time of the HTF application. Documentation will be requested at a later date to document the leverage provided to the housing development/activity. Identified Funding Source (State/FHFA, Lender, etc) Amount of Funding Requested Timeline for Decision Funding Committed to Date (10 Points) Total Project Development Costs Total Funding Committed Funding Requested from HTF Number Dwelling Units Leverage 1 to 1 or higher Leverage .75 to 1 Leverage .50 to 1 Leverage .25 to 1 10 8 5 2 9.25.19 11.J.2 Packet Pg. 881 Attachment: HTF Evaluation Criteria 9.25.19 cg-ks (10257 : Housing Trust Fund Implementation) Housing Trust Fund Annual Work Plan 2019-2020 IMPLEMENTATION OF LOCAL AFFORDABLE HOUSING TRUST FUND ACTION STEPS WHAT-Deliverable/Content WHEN -Frequency WHO Housing Trust Fund Work Plan Present HTF Work Plan & funding allocation to BCC for approval Annually (October- November) CHS Director Application cycle advertised Public Notice Annually (December) CHS Senior Grants Coordinator Advertised application cycle Formal, competitive application Annually (Jan – Feb) CHS staff Applications reviewed, evaluated, ranked Review submitted applications against published criteria Annually - Spring (March) Review & Ranking Committee Members approved by CMO AHAC presentation RRC Recommendations Annually Spring (April – May) RRC representative & CHS staff BCC presentation HTF Award Recommendations Annually Spring- Summer (May-July) CHS Director Enter into contractual agreement with awardees Formal agreement b/t County and awardee Annually (September- October) CHS staff Implementation- Compliance Monitoring Review for progress, accomplishments, compliance On-going monthly/quarterly CHS Grant Coordinators Financial Compliance Review for fiscal compliance On-going monthly/quarterly CHS Accounting Staff Annual HTF Progress Report Deliver annual report to the BCC on expenditures & accomplishments Annually (October- November) CHS Director 11.J.3 Packet Pg. 882 Attachment: HTF Work Plan 9.20.19 (10257 : Housing Trust Fund Implementation) Revenue Budget Actuals Housing Density Bonus 41,031.58$ 41,031.58$ Surplus Land Sale 142,052.48$ 142,052.48$ Misc. 28.00$ 28.00$ Total 183,112.06$ 183,112.06$ Expense Budget Actuals Admin Expense *18,311.20$ 2,869.55$ Program Assistance 164,800.86$ -$ Total 183,112.06$ 2,869.55$ Funds Available 180,242.51$ * 10% of Affordable Housing Revenue can be used towards Admin expense. Last Updated on 9/23/19 2018-2019 Affordable Housing Trust Fund Fiscal Report 11.J.4 Packet Pg. 883 Attachment: 2018-19 Affordable Housing Trust Fund Fiscal Report (10257 : Housing Trust Fund Implementation) 11.J.5Packet Pg. 884Attachment: HTF Resolution 2019 CAO Stamped (10257 : Housing Trust Fund Implementation) 11.J.5Packet Pg. 885Attachment: HTF Resolution 2019 CAO Stamped (10257 : Housing Trust Fund Implementation)