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Agenda 03/12/2024 Item #16D 1 (Casa Amigo EHT, LLC, Project)03/12/2024 EXECUTIVE SUMMARY Recommendation to approve and authorize the Chairman to sign an Impact Fee Deferral Agreement in the amount of $281,589.12 with Casa Amigo EHT, LLC, for twenty-four (24) Multi-Family Affordable Housing Rental Units. (Companion to Item 16F1) OBJECTIVE: To administer a Board of County Commissioners ("Board") approved affordable housing program in Collier County. CONSIDERATIONS: Casa Amigo EHT, LLC (“Owner”) is requesting an Impact Fee Deferral on twenty -four (24) affordable housing units for the “Casa Amigos” project. The affordable units are located on Casa Amigos Way in Immokalee and came online after the issuance of the Certification of Occupancy on December 15, 2023. Pursuant to the agreement, the County will defer $281,589.12 in impact fees for ten (10) years provided that twenty-four (24) multi-family units are held out as affordable. In compliance with the provisions of the impact fee ordinance, the Owner is choosing to subordinate this Agreement by delivering to Collier County substitute collateral in the form of a cash equivalent financial instrument payable to Collier County, which will yield to the County the full amount of the deferred impact fees, i.e., the sum of $281,589.12 on or before the end of ten (10) years from the date such impact fees are deferred. If the units cease to be utilized for affordable housing, the full amount of deferred impact fees shall be immediately due and payable, including all applicable interest and penalties. Furthermore, the owner agrees the uni ts shall remain affordable housing qualified for a minimum of thirty (30) years from initial occupancy. Code of Laws Section 74-401(l) allows the Owner to provide an “additional cash equivalent financial instrument which will yield the full amount of the deferred impact fees when they may become due and payable.” The owner will provide a treasury bond that will yield $281,589.12 in ten (10) years. FISCAL IMPACT: This agreement defers $281,589.12 in impact fees. The term of the deferral is ten (10) years from the date of the execution of the impact fee deferral agreement by the County unless otherwise extended by the Board. Additionally, the Owner will purchase and provide Collier County a 10-year Zero Coupon Treasury Bond which will yield the full amount of the deferred impact fees when they may become due and payable. GROWTH MANAGEMENT IMPACT: Objective 1, Policy 1.10 of the Housing Element of the Collier County Growth Management Plan states: “...Programs and strategies to encourage affordable-workforce housing development may include, but are not limited to, density by right within the Immokalee Urban area and other density bonus provisions, impact fee deferrals, expedited permitting (fast tracking), public-private partnerships, providing technical assistance and intergovernmental coordination.” LEGAL CONSIDERATIONS: Deferral of impact fees for affordable housing is consistent with the provisions and guidelines of Collier County Code of Laws Section 74-401 and the Collier County Consolidated Impact Fee Ordinance, Ordinance No. 2001-13, as amended. Additionally, water and sewer impact fees are exempt from all rental impact fee deferral programs unless specifically waived by the Board, pursuant to Code of Laws Section 74 - 401(a)(4). This item is approved as to form and legality and requires a majority for Board approval. -DDP RECOMMENDATION: To approve and authorize the Chairman to sign an Impact Fee Deferral Agreement in the amount of $281,589.12 with Casa Amigo EHT, LLC, for twenty-four (24) Multi-Family Affordable Housing Rental Units. Prepared By: Lisa Carr, Supervisor-Grants, Community and Human Services Division 16.D.1 Packet Pg. 785 03/12/2024 ATTACHMENT(S) 1. [1843549] IF Developer Agreement Casa Amigos-Final-DDP (PDF) 16.D.1 Packet Pg. 786 03/12/2024 COLLIER COUNTY Board of County Commissioners Item Number: 16.D.1 Doc ID: 27940 Item Summary: Recommendation to approve and authorize the Chairman to sign an Impact Fee Deferral Agreement in the amount of $281,589.12 with Casa Amigo EHT, LLC, for twenty-four (24) Multi-Family Affordable Housing Rental Housing Units. (Companion to Item 16F1) Meeting Date: 03/12/2024 Prepared by: Title: Grants Coordinator – Community & Human Services Name: Lisa Carr 02/07/2024 1:28 PM Submitted by: Title: Manager - Federal/State Grants Operation – Community & Human Services Name: Kristi Sonntag 02/07/2024 1:28 PM Approved By: Review: Public Services Department Vanessa Collier Additional Reviewer Completed 02/12/2024 7:10 AM Community & Human Services Kristi Sonntag CHS Review Completed 02/12/2024 11:52 AM Community & Human Services Kristi Sonntag Additional Reviewer Skipped 02/12/2024 1:50 PM Capital Project Planning, Impact Fees, and Program Management Gino Santabarbara Additional Reviewer Completed 02/12/2024 2:09 PM Operations & Veteran Services Jeff Weir OVS Director Review Completed 02/12/2024 3:13 PM Public Services Department Todd Henry Level 1 Department Review Completed 02/13/2024 3:36 PM Grants Erica Robinson Level 2 Grants Review Completed 02/14/2024 3:11 PM Public Services Department Tanya Williams PSD Department Head Review Completed 02/29/2024 7:54 AM County Attorney's Office Derek D. Perry Level 2 Attorney Review Completed 02/29/2024 9:51 PM Capital Project Planning, Impact Fees, and Program Management Ian Barnwell TMSD Reviewer Completed 03/04/2024 11:07 AM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 03/04/2024 11:46 AM Grants Therese Stanley OMB Reviewer Completed 03/04/2024 1:12 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 03/04/2024 1:18 PM Office of Management and Budget Blanca Aquino Luque OMB Reviewer Completed 03/05/2024 4:56 PM County Manager's Office Amy Patterson Level 4 County Manager Review Completed 03/06/2024 9:46 AM Board of County Commissioners Geoffrey Willig Meeting Pending 03/12/2024 9:00 AM 16.D.1 Packet Pg. 787 [23-GRC-01406/1843549/1] Page 1 of 11 Prepared by and return to: Wendy Klopf Community and Human Services 3339 Tamiami Trail E, Building H, Suite 213 Naples, FL 34112 File# FY23-xx [This space for recording] LIEN AGREEMENT WITH OWNER FOR 100% DEFERRAL OF COLLIER COUNTY IMPACT FEES FOR MULTI-FAMILY AFFORDABLE HOUSING RENTAL UNITS This Agreement is entered into this _____ day of _____________ 2024, between Collier County, a political subdivision of the State of Florida (“COUNTY”), and Casa Amigos EHT, LLC, a Florida Limited Liability Company (“OWNER”), collectively stated as the “Parties.” NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is mutually acknowledged, the Parties agree as follows: 1. Authority and Conflict. This Lien Agreement is made pursuant to Chapter 74 of the Code of Laws and Ordinances of Collier County, Florida, known as “The Collier County Consolidated Impact Fee Ordinance” (“Ordinance”). In the event of any conflict with this Agreement, the terms of the Ordinance shall apply. 2. Legal Description and Number of Rental Units. This Agreement shall affect, encumber, and otherwise apply to the 24 Rental Units located on the Owner’s property described in Exhibit “A”, attached hereto an incorporated herein, which constitutes all of the Rental Units on the property (the “PROJECT”). 3. Standards. The OWNER agrees that the Rental units shall remain affordable and shall be offered for rent in accordance with the standards set forth in the Impact Fee Ordinance for the term of thirty (30) years after issuance of the certificate of occupancy. 4. Representations and Warranties. The OWNER represents and warrants the following: A. Exclusively Affordable. Each Rental Unit will, during the term of the Agreement, be solely offered and available to a qualifying occupant/tenant. B. Very Low- or Low-Income. At the commencement of any leasehold and throughout the duration thereof, the households renting Rental Units must have a very low- or low-income level, as those terms are defined in the Impact Fee Ordinance (see Sec. 74-402); and the household’s monthly rent must be within the affordable housing guidelines established in the Impact Fee Ordinance (see Sec. 74-401(b)(2)). CAO16.D.1.a Packet Pg. 788 Attachment: [1843549] IF Developer Agreement Casa Amigos-Final-DDP (27940 : CWIF - Casa Amiogs EHT, LLC) [23-GRC-01406/1843549/1] Page 2 of 11 C. Term of Affordability. Each Rental Unit must remain “affordable” pursuant to the Ordinance for at least thirty (30) years from the date its certificate of occupancy was issued. D. Legal Status. The head of the household will be at least 18 years of age and must be either a citizen of the United States or be a legal alien who permanently resides in the United States. 5. Rental Units. If the OWNER rents a Rental Unit which is subject to the impact fee deferral and then re-rents that Rental Unit to a subsequent renter, the Rental Unit shall be re-rented only to persons or households meeting the qualifying criteria set forth in the Impact Fee Ordinance. If the income of any unit renter which originally qualified as very low or low income level as defined in the Impact Fee Ordinance increases by more than forty percent (40%) above the maximum low income level described in the Impact Fee Ordinance, then the per unit deferred impact fee on the non-compliant unit shall become immediately due and payable by OWNER or, in the alternative, the OWNER shall have ninety (90) days to comply with the Affordable Housing guidelines set forth in the Impact Fee Ordinance. Assuming the OWNER has not been able to comply with the guidelines, upon the discontinuance of use of a Rental Unit as affordable housing, the impact fees deferred shall be immediately repaid to the COUNTY. OWNER agrees that even though the impact fees may have been repaid to the COUNTY, the OWNER will continue to utilize the Rental Units for affordable housing for at least thirty (30) years from the date the first certificate of occupancy was issued for a Rental Unit. 6. Terms of Deferral. The OWNER agrees that the term of the requirement to pay the PROJECT’s impact fees will be deferred for ten (10) years from the date of the execution of the impact fee deferral agreement by the County, unless otherwise extended by the Board of County Commissioners. OWNER must comply with all terms of Chapter 74 of the Code of Laws and Ordinance during the term. 7. CHS Annual Compliance Affidavit. Annually, OWNER of the Rental Unit shall provide to the Collier County Community and Human Service Division an affidavit attesting to compliance with the affordable housing qualification criteria and standards set forth in the Impact Fee Ordinance. 8. CMO Annual Compliance Affidavit. Annually, the OWNER shall provide to the county manager an affidavit of compliance with the criteria set forth in this section. The affidavit must be filed within 30 days of the anniversary date of the issuance of a certificate of occupancy, or at another mutually agreed on date. If the affidavit is not fled on time the affiant shall pay to the county a $50.00 late fee. Any Rental Units monitored by the Florida Housing Finance Corporation or similarly monitored by any other state or federal agency will not be required to file this separate CAO16.D.1.a Packet Pg. 789 Attachment: [1843549] IF Developer Agreement Casa Amigos-Final-DDP (27940 : CWIF - Casa Amiogs EHT, LLC) [23-GRC-01406/1843549/1] Page 3 of 11 affidavit of compliance with the County Manager. A copy of the monitoring report by Florida Housing Finance Corporation or monitoring report by any other state or federal agency will be forwarded to the Collier County Community and Human Service Division. 9. Amount. The OWNER agrees that the dollar amount of deferred impact fees, commencing on the effective date of this Agreement and continuing until paid or released, will constitute and be a lien in the amount of Two Hundred Eighty-One Thousand Five Hundred Eighty-Nine and 12/100 Dollars ($281,589.12) (as evidenced in Exhibit “B”, Impact Fee Breakdown, attached hereto and incorporated herein by reference). 10. Subordination and Security. In addition to the subordination provisions of the Ordinance, the OWNER agrees to provide an additional cash equivalent financial instrument or security that will yield the full amount of the deferred impact fees when they become due and payable pursuant to this Agreement, as evidenced by Exhibit “C”, attached hereto and incorporated herein by reference. 11. Release. Upon satisfactory completion of this Agreement’s requirements, including payment of the deferred impact fees, the COUNTY shall, at the expense of the COUNTY, record any necessary documentation evidencing such payment, including but not limited to, a release of lien. 12. Continued Liability. This Agreement shall be binding upon the Parties to this Agreement, their heirs, successors, and assigns. The OWNER agrees not to convey its interest in the Project or any Rental Unit without the COUNTY’s prior written consent, which shall not to be unreasonably withheld. However, in the case of sale or transfer of the Project or any Rental Unit, the original undersigned OWNER shall also remain jointly and severally liable for the impact fees deferred until said impact fees are paid in full. 13. Recording Costs. This Agreement shall be recorded at the expense of OWNER in the Official Records of Collier County, Florida within sixty (90) days after execution of this Agreement. 14. Default. OWNER shall be in default of this Agreement: A. If the OWNER fails to rent the property in accordance with the affordable housing standards and qualification criteria established in the Impact Fee Ordinance, and thereafter, fails to pay the impact fees due within thirty (30) days of mailing of written notice of said non-compliance; B. If the OWNER continues to violate one of the affordable housing qualification criteria in the Impact Fee Ordinance for a period of fifteen (15) days after mailing of written notice of such violation; or CAO16.D.1.a Packet Pg. 790 Attachment: [1843549] IF Developer Agreement Casa Amigos-Final-DDP (27940 : CWIF - Casa Amiogs EHT, LLC) [23-GRC-01406/1843549/1] Page 4 of 11 C. With respect to the Annual Report, once a fifteen (15) day grace period from the date of the report being due has expired, the OWNER will thereafter be in default. 15. Available Remedies. The following remedies are cumulative with any other right or remedy available to the COUNTY: A. Should the OWNER of the property: (1) fail to comply with the said qualification criteria at any time during the thirty (30) year term; or (2) violate any provisions of this Agreement, then the dollar amount of impact fees deferred shall be paid in full by OWNER to the COUNTY within thirty (30) days of written notification of said violation. B. Should the OWNER otherwise be in default of this Agreement, and the default is not cured within ninety (90) days after mailing written notice to the OWNER, the COUNTY may bring a civil action to enforce the Agreement. C. In addition, the lien may be foreclosed, or otherwise enforced by the COUNTY, by action or suit in equity, including the foreclosure of this lien or mortgage on real property. The COUNTY shall be entitled to recover all fees and costs, including attorney’s fees, plus interest at the statutory rate for judgments calculated on a calendar day basis until paid. 16. Restrictive Covenant. This Agreement establishes a valid and enforceable covenant running with the land described in Exhibit “A”, also known as Property Appraiser Parcel No. 00076200203, located at 2687 Amigo Way, Immokalee, FL 34142 (hereinafter “Owner’s Property”). Owner hereby acknowledges that the specified deferral of impact fees described in this Lien Agreement benefits the Owner’s Property. This Agreement shall constitute covenants, restrictions, and conditions which shall run with the land and shall be binding upon the Owner’s Property and every person having any interest therein at any time and from time to time. [Remainder of page intentionally left blank; Signature page to follow] CAO16.D.1.a Packet Pg. 791 Attachment: [1843549] IF Developer Agreement Casa Amigos-Final-DDP (27940 : CWIF - Casa Amiogs EHT, LLC) [23-GRC-01406/1843549/1] Page 5 of 11 IN WITNESS WHEREOF, the Parties have executed this Agreement on the date and year first above written. Witnesses: _____________________________________ Witness #1 Signature _____________________________________ Witness #1 Printed Name _____________________________________ Witness #1 Post Address _____________________________________ Witness #2 Signature _____________________________________ Witness #2 Printed Name _____________________________________ Witness #2 Post Address As to OWNER: Casa Amigos EHT, LLC, a Florida Limited Liability Company By: ___________________________________ Steve Kirk, President STATE OF FLORIDA COUNTY OF _______________ The foregoing Agreement was acknowledged before me by means of physical presence this ____ day of ___________________ 2024, by Steve Kirk as President of Casa Amigos EHT, LLC, and is personally known to me or produced ___________________________as identification. _____________________________________ Notary Signature [Affix Notarial Seal] _____________________________________ Notary Printed Name ATTEST: CRYSTAL K. KINZEL, Clerk By: _______________________________ Deputy Clerk Approved as to form and legality: __________________________________ Derek D. Perry Assistant County Attorney As to COUNTY: BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA By: __________________________________ Chris Hall, Chairman CAO2/5/202416.D.1.a Packet Pg. 792 Attachment: [1843549] IF Developer Agreement Casa Amigos-Final-DDP (27940 : CWIF - Casa Amiogs EHT, LLC) [23-GRC-01406/1843549/1] Page 6 of 11 EXHIBIT “A” Parcel ID/Folio No. Street Number Street City, State Zip Legal Description 00076200203 2687 Amigo Way Immokalee Fl 34142 See Exhibit “A” [LEGAL DESCRIPTION OF EXHIBIT “A” TO FOLLOW] CAO16.D.1.a Packet Pg. 793 Attachment: [1843549] IF Developer Agreement Casa Amigos-Final-DDP (27940 : CWIF - Casa Amiogs EHT, LLC) [23-GRC-01406/1843549/1] Page 7 of 11 CAO16.D.1.a Packet Pg. 794 Attachment: [1843549] IF Developer Agreement Casa Amigos-Final-DDP (27940 : CWIF - Casa Amiogs EHT, LLC) [23-GRC-01406/1843549/1] Page 8 of 11 CAO16.D.1.a Packet Pg. 795 Attachment: [1843549] IF Developer Agreement Casa Amigos-Final-DDP (27940 : CWIF - Casa Amiogs EHT, LLC) [23-GRC-01406/1843549/1] Page 9 of 11 CAO16.D.1.a Packet Pg. 796 Attachment: [1843549] IF Developer Agreement Casa Amigos-Final-DDP (27940 : CWIF - Casa Amiogs EHT, LLC) [23-GRC-01406/1843549/1] Page 10 of 11 EXHIBIT “B” IMPACT FEE BREAKDOWN Type of Impact Fee Amount Owed A. EMS $1,620.00 B. GOVERNMENT BUILDINGS $10,654.56 C. JAIL $5,493.84 D. LAW ENFORCEMENT $7,117.44 E. LIBRARIES $3,834.72 F. COMMUNITY PARK $10,924.80 G. ROAD $144,157.44 H. REGIONAL PARK $29,525.76 I. SCHOOL $68,260.56 TOTAL IMPACT FEES $281,589.12 CAO16.D.1.a Packet Pg. 797 Attachment: [1843549] IF Developer Agreement Casa Amigos-Final-DDP (27940 : CWIF - Casa Amiogs EHT, LLC) [23-GRC-01406/1843549/1] Page 11 of 11 EXHIBIT “C” IMPACT FEE FINANCIAL INSTRUMENT OR SECURITY CAO16.D.1.a Packet Pg. 798 Attachment: [1843549] IF Developer Agreement Casa Amigos-Final-DDP (27940 : CWIF - Casa Amiogs EHT, LLC)