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Agenda 06/23/2020 Item #16D 6 (Budget Amendment for SHIP Funding)06/23/2020 EXECUTIVE SUMMARY Recommendation to authorize a Budget Amendment to allow continuous operation of the State Housing Initiatives Partnership Program prior to the execution of the FY2020/2021 funding award. OBJECTIVE: To support housing affordability in Collier County. CONSIDERATIONS: The State Housing Initiatives Partnership (SHIP) Program, created by the passage of the 1992 William E. Sadowski Affordable Housing Act, provides funding to local communities to promote and advance affordable housing initiatives. Funds are generated through documentary stamp tax on real estate transactions. Under the SHIP Local Housing Assistance Plan (LHAP) eligible strategies serve as a guideline for the use of all SHIP funds. Collier County and the City of Naples receive funds from the State of Florida through the Florida Housing Finance Corporation (FHFC) to undertake eligible strategies. Historically, the Community and Human Services Division (CHS) receives the funding award from FHFC during the month of June for the upcoming grant cycle. To avoid disruption in services, and ensure compliance with the grant service agreement requirements, the upcoming funding has been estimated based on the amount approved during the state FY 2020 legislative session and prior year program income receipts. Collier County is estimated to be awarded a total of $4,046,301 in SHIP funding and to receive program income of $37,440.33 The funds are to be used to implement SHIP Program strategies outlined in the 2019/2022 Local Housing Assistance Plan (LHAP) that was approved by the Board of County Commissioners (Board) on April 23, 2019 (Agenda Item #16D1). These funds have an expenditure deadline of June 30, 2023. When the final award allocation is received, any necessary Budget Amendments to reflect variations from the estimated amount will be presented to the Board that require Board approval. Changes such as decreases will be notified to the Board through County Manager memorandum. The following table provides a breakdown of the award amount and program income estimates: Source Estimated Program Funds Estimated Admin Funds Total Allocation from FHFC $3,641,670.90 $404,630.10 $4,046,301 Program Income $35,568.31 $1,872.02 $37,440.33 Grand Total $3,677,239.21 $406,502.12 $4,083,741.33 Thanks in part to lobbying and advocacy initiatives in which this Board participated in as a recommendation of the Community Housing Plan, the FY 2020/2021 estimated SHIP allocation of $4,046,301 represents a very significant increase (+602%) over the previous year’s funding. In fact, the estimated FY 2020/2021 allocation of $4,046,301 is significantly greater than any recent year’s allocation: FY 2017/2018 = $1,722,556, FY 2018/2019 = $576,606 and FY 2019/2020 = $704,195. SHIP program staffing has been reduced in recent years reflective of the funding level reductions. It is anticipated that additional staffing will be needed in FY2020/2021 to effectively administer the increase in funding. Staff administrative costs are an eligible expense of the grant funds. FISCAL IMPACT: The Budget Amendment recognizes estimated grant revenue of $4,046,301 that will be available from the Florida Housing Finance Corporation (of which ten percent (10%) will be used as 16.D.6 Packet Pg. 1525 06/23/2020 Administrative funds) and $37,440.33 in program income, available from interest and loan payments (of which five percent (5%) will be used as Administrative funds). All funds will be available in SHIP Grant Fund (791), Project 33686. The proposed action does not have an impact on the General Fund. LEGAL CONSIDERATIONS: This Item has been approved for form and legality and requires a majority vote for Board approval. -JAB GROWTH MANAGEMENT IMPACT: Acceptance of these funds will allow the County to expand affordable housing opportunities for its citizens and further the goals of the Housing Element of the Collier County Growth Management Plan. RECOMMENDATION: To authorize a Budget Amendment to allow continuous operation of the State Housing Initiatives Partnership Program prior to the execution of the 2020/2021 funding award. (Net Fiscal Impact $4,083,741.33) Prepared By: Leslie Davis, Accountant, Community and Human Services Division 16.D.6 Packet Pg. 1526 06/23/2020 COLLIER COUNTY Board of County Commissioners Item Number: 16.D.6 Doc ID: 12490 Item Summary: Recommendation to authorize a Budget Amendment to allow continuous operation of the State Housing Initiatives Partnership Program prior to the execution of the FY2020/2021 funding award. Meeting Date: 06/23/2020 Prepared by: Title: Accountant – Community & Human Services Name: Leslie Davis 05/26/2020 8:51 AM Submitted by: Title: Manager - Federal/State Grants Operation – Community & Human Services Name: Kristi Sonntag 05/26/2020 8:51 AM Approved By: Review: Community & Human Services Cormac Giblin Additional Reviewer Completed 05/28/2020 1:14 PM Community & Human Services Kristi Sonntag CHS Review Completed 05/28/2020 2:12 PM Community & Human Services Maggie Lopez Additional Reviewer Completed 06/01/2020 8:51 PM Community & Human Services Lisa Carr Additional Reviewer Completed 06/02/2020 4:11 PM Operations & Veteran Services Kimberley Grant Level 1 Reviewer Completed 06/03/2020 9:29 AM Public Services Department Todd Henry Level 1 Division Reviewer Completed 06/05/2020 11:41 AM Public Services Department Steve Carnell Level 2 Division Administrator Review Completed 06/05/2020 12:50 PM County Attorney's Office Jennifer Belpedio Level 2 Attorney of Record Review Completed 06/08/2020 10:52 AM Grants Erica Robinson Level 2 Grants Review Completed 06/08/2020 3:35 PM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 06/08/2020 4:11 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 06/08/2020 4:21 PM Budget and Management Office Ed Finn Additional Reviewer Completed 06/15/2020 10:46 AM Grants Therese Stanley Additional Reviewer Completed 06/15/2020 1:05 PM County Manager's Office Sean Callahan Level 4 County Manager Review Completed 06/15/2020 4:59 PM Board of County Commissioners MaryJo Brock Meeting Pending 06/23/2020 9:00 AM 16.D.6 Packet Pg. 1527