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Agenda 08/26/2025 Item #16D 3 (A State Housing Initiative Parnership sponsor agreement between Collier County and Rural Neighborhoods, Inc.)8/26/2025 Item # 16.D.3 ID# 2025-2539 Executive Summary Recommendation to approve a State Housing Initiative Partnership Sponsor Agreement between Collier County and Rural Neighborhoods, Inc., in the amount of $290,000 for the administration of an Owner-Occupied Rehabilitation program. (SHIP Grant Fund 1053) OBJECTIVE: To continue to promote affordable housing strategies for low- to moderate-income persons through the State Housing Initiatives Partnership Program (SHIP) and support comprehensive affordable housing opportunities. CONSIDERATIONS: The William E. Sadowski Affordable Housing Act adopted by the State of Florida in 1992 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 Program, Collier County and the City of Naples receive funds from the State of Florida through the Florida Housing Finance Corporation (FHFC) to undertake eligible activities. On April 8, 2025, Agenda Item 16.D.10, the Board approved the SHIP Local Housing Assistance Plans (LHAP) identifying eligible strategies and serving as a guideline for the use of all SHIP funds and includes a strategy for owner occupied rehabilitation. Rehabilitation of owner-occupied properties has been shown to preserve neighborhoods, assist in reducing declines in property values that result from deterioration, and maintain the existing stock of housing that is affordable. Staff advertised a request for an application cycle commencing in January of 2025, to secure a non-profit organization to implement SHIP program strategies. Rural Neighborhoods, Inc. (the “Sponsor”) submitted an application on February 20, 2025, to administer an owner-occupied rehabilitation program focusing on low-income households with expensive major repairs that preserve the long-term integrity of their homes and improve their energy efficiency or disaster resiliency. In April 2025, a conditional award letter was issued to the sponsor. The Sponsor Agreement provides for an Owner-Occupied Rehabilitation program to be administered by Rural Neighborhoods, Inc. and is designed to assist income-eligible homeowners that own and occupy their home by providing disaster resiliency and may assist with repairs to correct code violations or make emergency repairs that will impact their health, safety, and welfare. The Community and Human Services Division (CHS) will provide all eligible applicants to the Sponsor to also mitigate the homeowner’s ability to lower the cost of their insurance premiums by reinforcing their homes to make them stronger. The Sponsor will carry out the housing rehabilitation contract management and inspection of the Owner-Occupied Rehabilitation Program and shall perform technical and administrative work involving the repair and renovation of residential properties in the program. The Sponsor will establish a contractual relationship with the homeowner and with the selected contractor to ensure all parties are aware of the program requirements and the tasks and deliverables required. CHS will have a properly procured independent professional review of all inspections, quotations, etc. to ensure the best value and only necessary repairs are made. There will be an agreement between Collier County and the homeowner through a promissory note and mortgage loan that will define the terms of the mortgage and promissory note and will be recorded in the public records prior to any work commencing on the homeowner’s unit. A modification will be done at the completion of the rehabilitation of the unit to reflect the actual rehabilitation cost expended. Support comprehensive affordable housing opportunities. FISCAL IMPACT: The proposed action has no new fiscal impact. The funding source for this grant is Florida Housing Finance Corporation. Funds are budgeted in the SHIP Grant Fund 1053, Project 33938. Page 3273 of 4682 8/26/2025 Item # 16.D.3 ID# 2025-2539 GROWTH MANAGEMENT IMPACT: These projects 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. LEGAL CONSIDERATIONS: This Item has been approved for form and legality and requires a majority vote for Board approval. - CLD RECOMMENDATIONS: To approve a State Housing Initiative Partnership Sponsor Agreement between Collier County and Rural Neighborhoods, Inc., in the amount of $290,000 for the administration of an Owner- Occupied Rehabilitation program. (SHIP Grant Fund 1053). PREPARED BY: Wendy Klopf, Grants Coordinator I, Community and Human Services Division ATTACHMENTS: 1. 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