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2009 Amended Administrative Plan Collier County Housing and Human Services '3301 E Tamiami Trail Building H - Suite 211 Naples, Florida 34112 (239) 252-4663 This Administrative Plan is a guide for operating the Collier County Neighborhood Stabilization Program. This guide was prepared by the Department of Housing and Human Services. Grant Number B-08-UN-12-0003 Grant Amount $7,306,755 Revised October 27,2009 I. INTRODUCTION.............................................................................................................................................. .. 3 II. ACQU ISITION OBJ ECTIVES AN D PO L1CI ES......................................................................................................... 3 A. Objective{s) .. .................................................................................................................................................... 3 B. Acquisition Policies........................................................................................................................................... 3 C. Identifying Property......................................................................................................................................... 4 D. Acquisition Regulations.................................................................................................................................... 4 III. REHABI LIT A TION OBJ ECTIVES AN 0 POLlel ES ........... ................................................... ....... ................. ............. 4 A. Objective{s) ...................................................................................................................................................... 4 B. Rehabilitation Policies...................................................................................................................................... 5 C. Rehabilitation Regulations............................................................................................................................... 5 IV. HOMEOWNERSHI P ASSISTANCE OBJECTIVES AND POLICIES ........................................................................... 5 A. Objective{s) ...................................................................................................................................................... 5 B. Homeownership Assista nce Policies................................................................................................................ 5 C. Homeownership Assista nce Regulations ......................................................................................................... 6 V. DE MOLlTION OBJ ECTIVES AN D POllCl ES......................................................................................................... 6 A. Objective{s) ...................................................................................................................................................... 6 B. Demolition Policies........................................................................................................................................... 7 C. Demolition Regulations.................................................................................................................................... 7 VI. LAND BANK OBJECTIVES AND POLICIES ........................................................................................................... 7 A. Objective{s) ...................................................................................................................................................... 7 B. Land Bank Policies............................................................................................................................................ 7 C. Lank Ba nk Regulations..................................................................................................................................... 8 VII. TRANSFER PROPERTY OBJ ECTIVES AN D POllCI ES.. .... .............. .............. ............................ ............. ................. 8 A. Objective{s) ...................................................................................................................................................... 8 B. Tra nsfer Property Policies...................................................................................................................... .......... 8 C. Transfer Property Regulations......................................................................................................................... 8 VIII. ACTIVITY PROCE DURES ......................................................................................................... ........................... 9 A. General....... ...................................................................................................................................................... 9 B. Acq uisition of Rea I Property............................................................................................................................. 9 C. Rehabilitation................................................................................................................................................. 10 D. Homeownership Assistance........................................................................................................................... 10 E. Demolition. .............. ............................... .... ... .................. .............. .............. ................................. .......... ........ 11 F. Land Ba nking .................................................................................................................................................. 11 G. Tra nsfer of Property....................................................................................................................................... 11 IX. PROGRAM PROCEDU RES......................... ....................................................................................................... 13 A. General.............. ............................................................................................................................................. 13 B. Environmental Review................................................................................................................................... 13 C. Cha nge Orders................................................................................................. ............................................... 13 D. Payment................................. ........................................................................................................................ 13 E. Final Inspection .............................................................................................................................................. 14 F. Mon itoring County Owned Properties........................................................................................................... 14 G. Transfer of Property....................................................................................................................................... 14 X. PU RCHASI NG PO lICY...................................................................................................................................... 14 XI. MARKETI NG PROG RAM.................................................................................................................................. 15 XII. REPORTI NG........ ............................................................................................................................................. 16 XIII. PROG RAM I NCOM E........................................................................................................................................ 16 Page 2 of 17 I. INTRODUCTION Title III of Division B ofthe Housing and Economic Recovery Act, 2008 (HERA) (Public Law 110-289, approved July 30, 2008) appropriates $3.92 billion for redevelopment of abandoned and foreclosed homes and residential properties. The grant program under Title III is commonly referred to as the Neighborhood Stabilization Program (NSP). Effective October 6,2008, the U.S. Department of Housing and Urban Development (HUD) issued a Notice of Allocations, Application Procedures, Regulatory Waivers Granted to and Alternative Requirements for Emergency Assistance for Redevelopment of Abandoned and Foreclosed Homes Grantees under the Housing and Economic Recovery Act, 2008 (Docket No. FR-5255-N-01). Subsequently, on June 11, 2009, HUD issued a revised notice (Docket No. FR-5255-N-02)) implementing substantive revisions to the October 6, 2008 notice, primarily as a result of changes to NSP made by Title XII of Division A of the American Recovery and Reinvestment Act of 2009. The effective date of the substantive revisions, as determined by HUD, remains as published in the Federal Register on October 6, 2008. HUD required Collier County to submit a Substantial Amendment to the 2008-2009 HUD One Year Action Plan no later than December 1, 2008. The required Amendment was approved by the Collier County Board of County Commissioners on November 18, 2008 under agenda item 16D3. Collier County has been allocated $7,306,755.00 to assist with the redevelopment of foreclosed homes and residential properties. Section 2301{c){2) of HERA requires the County to distribute the funds to the areas of greatest risk. Factors considered included percentage of home foreclosures, percentage of homes financed by a subprime mortgage related loan, and those likely to face a significant rise in the rate of foreclosures. Collier County will focus efforts in three (3) geographic areas: East Naples (Zip Code 34112), Golden Gate City (Zip Code 34116) and Golden Gate Estates (Zip Code 34120). However, Collier County will continue to monitor local housing data and intends that the NSP be flexible to allow for timely reaction to any significant changes in the local housing market. This Administrative Plan is a guide for operating the Collier County Neighborhood Stabilization Program. The major focus of this guide is on the following six (6) eligible activities: Acquisition, Rehabilitation, Homeownership Assistance, Demolition, Land Banking and Property Transfer. II. ACQUISITION OBJECTIVES AND POLICIES A. Objective[s] Provide permanent residential structures that will be occupied by a household whose income is at or below 120 percent of area median income. B. Acquisition Policies 1. The purchase price of all properties acquired shall be discounted at least one (1) percent from the current market appraised value. 2. The current market appraisal will be made in conformity with the requirements of the URA at 49 CFR 24.103 and completed within sixty (60) days prior to an offer to purchase being made by Collier County or an approved housing partner. 3. All residential properties must have been foreclosed and acquired from the banks or other lenders holding title to the property. Page 3 of 17 4. All acquisitions shall be made pursuant to a written Agreement for Sale and Purchase and in conformity with the procedures prescribed herein as section X - Purchasing Policy. In the event of a conflict, Community Development Block Grant (CDBG) purchasing policies shall take precedent. 5. All residential properties are eligible for acquisition. Examples include, but are not limited to, single-family residential dwelling units, multi-family residential dwelling units and residential condominium units. 6. Housing and Human Services to use department approved checklist to ensure NSP activities are documented, validated and in compliance with grant requirements. C. Identifying ProperfJI Residential properties shall be targeted in the following three geographic areas: East Naples (Zip Code 34112), Golden Gate City (Zip Code 34116) and Golden Gate Estates (Zip Code 34120). Collier County will seek to acquire residential properties suitable for resale to qualifying households, as well as residential properties suitable for rental to qualifying households. The Department of Housing and Human Services will partner with Real Property Management when identifying properties to purchase. When identifying properties, Collier County may desire to acquire residential properties that possess the following characteristics: . Single-family dwelling units . Multi-family dwelling units . Requiring minimal structure rehabilitation . Incorporated green building practices Housing and Human Services, in partnership with Real Property Management, will work directly with banks and other lenders, foreclosure servicers, realtors, or any other party with access to foreclosed property of interest to Collier County. However, Agreements for Sale and Purchase for the acquisition of property may only be made with the banks or other lenders holding title to the property. All proposed acquisitions must be approved by the Director of Housing and Human Services, or his/her designee, prior to entering into a purchase contract. D. Acquisition Regulations . Acquisition - 24 CFR 570.201{a) . Uniform Relocation Act - 49 CFR 24.103 · Property Location - Section 2301(c)(2) of HERA . Program Income - 24 CFR 570.500(a) · Environmental Reviews - 24 CFR part 58 . Resale of Property - Section 2301(d)(3) of HERA · Affordability Period - 24 CFR 92.252(a), (c), (e) and (f), and 92.254 III. REHABILITATION OBJECTIVES AND POLICIES A. Objective[s] Improve permanent residential structures that will be occupied by a household whose income is at or below 120 percent of area median income. Page 4 of 17 B. Rehabilitation Policies 1. All rehabilitation work must conform to current Florida Building Code requirements, as well as Environmental Health & Safety requirements. 2. All purchasing for services and goods, including capital equipment, shall be made by purchase order or by a written contract and in conformity with the procedures prescribed herein as Section X - Purchasing Policy. 3. Once complete, all rehabilitated properties must meet HUD Section 8 Minimum Housing Quality Standards and applicable Florida Building Codes. 4. Eligible rehabilitation activities shall be listed and documented by a Bid Specification Report prepared by a Rehabilitation Specialist. The Bid Specification Report will serve as a cost estimate for the work plan. 5. Any change{s) to the scope of the rehabilitation activities and/or cost of rehabilitation will be in accordance with the provisions outlined in the Collier County Purchasing Policy as relates to change orders. 6. HERA defines rehabilitation to include, but not limited to, improvements to increase the energy efficiency or conservation of such homes and properties, to provide renewable energy source or sources for such homes and properties. Furthermore, Collier County desires to harden the homes against the threat of hurricane damage. 7. HUD strongly encourages Collier County to use NSP funds not only to stabilize neighborhoods in the short-term, but to strategically incorporate modern, green building and energy-efficiency improvements to provide for long-term affordability and increased sustainability and attractiveness of housing and neighborhoods. 8. Rehabilitated property is subject to the minimum affordability period of the federal HOME Investment Partnership Program. C. Rehabilitation Regulations . Rehabilitation - 24 CFR 570.202 . Property Location - Section 2301{c){2) of HERA . Program Income - 24 CFR 570.500(a) . Environmental Reviews - 24 CFR part 58 . Affordability Period - 24 CFR 92.252{a), (c), (e) and (f), and 92.254 . 2005 Environmental Health & Safety . 2004 Florida Building Code (includes Energy Efficient Code) . 2004 Florida Building Code/Fuel Gas . 2004 Florida Building Code/Mechanical . 2004 Florida Building Code/Plumbing . 2004 Florida Building Code/Americans with Disabilities . 2005 National Electric Code . 2002-01 Building Construction Administrative Code IV. HOMEOWNERSHIP ASSISTANCE OBJECTIVES AND POLICIES A. Ob;ective[s] Provide permanent residential structures that will be occupied by a household whose income is at or below 120 percent of area median income. B. Direct Assistance Policies Page 5 of 17 1. All households assisted must have income at or below 120 percent of area median income. 2. All households must be qualified by the Department of Housing and Human Services prior to entering into a purchase agreement. 3. The head of household{s) must be a U.S. citizen{s) or permanent resident alien(s). 4. Applicants will procure a fixed-rate mortgage through the Collier County Loan Consortium, local banks, FHA, USDA or other lender. Restrictions on the features of the fixed-rate mortgage are contained in the application package. 5. All applicants must receive at least eight (8) hours of homebuyer education from a HUD certified counselor. 6. The purchase price of all properties acquired shall be discounted at least one (1) percent from the current market appraised value. 7. The current market appraisal will be made in conformity with the requirements ofthe URA at 49 CFR 24.103 and completed within sixty (60) days prior to an offer to purchase or closing transaction. 8. All residential properties must have been foreclosed and acquired from the banks or other lenders holding title to the property. 9. All residential properties are eligible for direct assistance. Examples include, but are not limited to, single-family residential dwelling units, multi-family residential dwelling units and residential condominium units. 10. The interest rate on Homeownership Assistance Deferred Payment Loans (DPL) will be zero (0) percent. 11. The DPL must be repaid when the assisted property is sold, refinanced, is no longer the homesteaded residence or is operated for an activity deemed ineligible for assistance under NSP guidelines. 12. The Homeownership Assistance DPL shall be secured through use of a Promissory Note and Mortgage. 13. The assisted property is subject to the minimum affordability period of the federal HOME Investment Partnership Program. 14. All homeownership assistance activities will be made in conformity with Community Development Block Grant (CDBG) down payment assistance policies. 15. All properties receiving NSP Homeownership Assistance must be the principal residence of the owner(s). C. Direct Assistance Regulations · Homeownership Assistance - 24 CFR 570.201(n) . Uniform Relocation Act - 49 CFR 24.103 · Property Location - Section 2301(c)(2) of HERA . Program Income - 24 CFR 570.500(a) . Environmental Reviews - 24 CFR part 58 · Affordability Period - 24 CFR 92.252(a), (c), (e) and (f), and 92.254 . Residency - HUD Handbook 4350.3 · Income Guidelines - Section 2301(f)(3)(A) of HERA V. DEMOLITION OBJECTIVES AND POLICIES A. Obiective[s] Eliminate blighted and unsafe residential structures through clearance, demolition and removal of foreclosed buildings and improvements. Page 6 of 17 B. Demolition Policies 1. Structures on foreclosed properties that are not economically feasible to rehabilitate, pose a health or safety threat, or are contributing to community blight may be demolished. Note that only blighted structures are eligible for demolition. An activity will be considered to address prevention or elimination of slums and blight if the area meets the requirements as outlined in 24 CFR 570.208{b). 2. Demolished properties may be placed in a land bank, according to HERA guidelines, may be redeveloped, or may be transferred to a local non-profit provider of affordable housing. 3. All residential structures must have been foreclosed and acquired from the banks or other lenders holding title to the property. 4. All proposed demolition must be approved by the Director of Housing and Human Services, or his/her designee, prior to commencing work. 5. Housing and Human Services does not intend demolition to be a major NSP activity. 6. Demolished property is subject to the minimum affordability period of the federal HOME Investment Partnership Program. C. Demolition Regulations . Demolition - 24 CFR 570.201{d) . Property Location - Section 2301(c){2) of HERA . Program Income - 24 CFR 570.500(a) . Environmental Reviews - 24 CFR part 58 . Affordability Period - 24 CFR 92.252(a), (c), (e) and (f), and 92.254 . Land Banking - 24 CFR 570.201{a) and (b) . Resale of Property - Section 2301(d)(3) of HERA . Uniform Relocation Act - 49 CFR 24.103 VI. LAND BANK OBJECTIVES AND POLICIES A. Objective[s] Establish a land bank for acquired foreclosed homes for the purpose of stabilizing neighborhoods and encouraging re-use or redevelopment of urban property. B. Land Bank Policies 1. All residential structures must have been foreclosed and acquired from the banks or other lenders holding title to the property. 2. The purchase price of all properties acquired shall be discounted at least one (1) percent from the current market appraised value. 3. The current market appraisal will be made in conformity with the requirements of the URA at 49 CFR 24.103 and completed within sixty (60) days prior to an offer to purchase being made by Collier County or an approved housing partner. 4. An NSP-assisted property may not be held in a land bank for more than ten (10) years without obligating the property for a specific, eligible redevelopment in accordance with HERA requirements. 5. Acquired property is subject to the minimum affordability period of the federal HOME Investment Partnership Program. Page 7 of 17 C. Land Bank Regulations . Land Bank - 24 CFR 570.201{a) and (b) . Property Location - Section 2301{c){2) of HERA . Program Income - 24 CFR 570.s00{a) . Environmental Reviews - 24 CFR part 58 . Affordability Period - 24 eFR 92.252{a), (c), (e) and (f), and 92.254 . Uniform Relocation Act - 49 CFR 24.103 VII. TRANSFER PROPERTY OBJECTIVES AND POLICIES A. Obiective[s] Provide permanent residential structures that will be occupied by a household whose income is at or below 120 percent of area median income. B. Transfer ProperfJI Policies 1. Residential properties acquired under the Collier County NSP must be sold, rented or benefit households whose income is at or below 120 percent of area median income. 2. Twenty-five (25) percent of the Collier County NSP allocation must assist households whose income is at or below 50 percent area median income. 3. When an acquired property is transferred out of County ownership, then such transfer shall be in an amount equal to or less than the cost to acquire and redevelop or rehabilitate such home or property up to a decent, safe, and habitable condition. Transfer and closing costs are eligible NSP redevelopment or rehabilitation costs. Note that the maximum consideration for a property is determined by aggregating all costs of acquisition, rehabilitation, and redevelopment (including related activity delivery costs, which generally may include, among other items, costs related to the transfer of the property). HUD will not consider the costs of boarding up, lawn mowing, or simply maintaining the property in a static condition to be redevelopment or rehabilitation costs. 4. When an acquired home or residential property is rented, the maximum affordable rent shall not exceed the Fair Market Rents (FMR) as published annually by HUD for the Naples - Marco Island MSA. 5. Transferred property is subject to the minimum affordability period of the federal HOME Investment Partnership Program. C. Transfer ProperfJI Regulations . Acquisition - 24 CFR 570.201(a) . Property Location - Section 2301(c)(2) of HERA . Program Income - 24 CFR 570.500(a) . Affordability Period - 24 CFR 92.252(a), (c), (e) and (f), and 92.254 . Uniform Relocation Act - 49 CFR 24.103 . Resale of Property - Section 2301{d){3) of HERA . Residency - HUD Handbook 4350.3 . Income Guidelines - Section 2301(f)(3)(A) of HERA Page 8 of 17 VIII. ACTIVITY PROCEDURES A. General i. The Collier County Board of County Commissioners approves the HUD One Year Action Plan and delegates administration of the NSP grant to the Director of Housing and Human Services. ii. The Director of Housing and Human Services, or his/her designee, has grant administration responsibility. iii. Current job descriptions for all actively involved employees will be maintained by the Department of Human Resources. iv. Financial duties and responsibilities must be separated so that no one employee has sole control over cash receipts, disbursements, payroll, reconciliation, etc. v. All activities must be in compliance with HERA, NSP and HUD CDBG regulations. B. Acquisition of Real ProperfJI i. The Director of Housing and Human Services, or his/her designee, will work with Real Property Management to identify foreclosed properties for acquisition. Housing and Human Services may partner with Information Technology to produce GIS mapping of foreclosed properties. Additionally, Housing and Human Services may partner with Code Enforcement to develop a list of bank contacts for the acquisition of foreclosed properties. ii. As potential properties are identified, Housing and Human Services personnel, with the assistance of Real Property Management representatives, will conduct an initial evaluation of each property to determine suitability for acquisition and rehabilitation. iii. Real Property Management will conduct or procure an appraisal of each property deemed suitable within sixty (60) days prior to making an offer to purchase. iv. All acquisitions will be in compliance with the applicable provisions of the URA. v. Following initial evaluation and appraisal, proposed offers to purchase will be prepared by Real Property Management. All offers to purchase must be approved by the Director of Housing and Human Services, or his/her designee. vi. Real Property Management will negotiate to obtain acceptance of approved offers to purchase, and will prepare Agreements for Sale and Purchase. A letter of Federal Funding shall be issued to the bank or other lender holding title to the property on or before the date of any offer. vii. Agreements for Sale and Purchase will contain appropriate contingencies regarding marketable title, environmental review and other due diligence items, and must be approved by the County Attorney's Office for form and legal sufficiency. viii. Upon approval of Agreements for Sale and Purchase, Real Property Management will obtain proper execution of the Agreements. Date of execution of any Agreement shall be the date that the final party signs, regardless of any contract language to the contrary. Interpretation of executed Agreements and other documentation shall be the exclusive responsibility of the County Attorney's Office. ix. Real Property Management will conduct all due diligence review, including obtaining evidence of clear title from an approved vendor, and will coordinate with Housing and Human Services, Risk Management, Code Enforcement, and other departments, agencies and organizations as appropriate. x. Housing and Human Services will perform an Environmental Review as part of the due diligence process. Additionally, Housing and Human Services to use department approved checklist to ensure NSP activities are documented, validated and in compliance with grant requirements. Page 9 of 17 xi. Real Property Management will prepare and/or review all documentation required for the closing of acquisitions, and will coordinate with the eounty Attorney's Office to obtain approval of all documents for form and legal sufficiency. Real Property Management will obtain proper execution of all documents. xii. Real Property Management and Housing and Human Services will coordinate with Finance to obtain funds necessary for closing. xiii. Real Property Management will coordinate final examinations of title and conduct or supervise the closing of all acquisitions following all appropriate closing procedures, and will supervise the recording of acquisition conveyances and all documents necessary for title clearance in the Public Records of Collier County, Florida. xiv. Housing and Human Services, or designee, to update quarterly insurance spreadsheet with newly acquired property information. xv. All County departments assisting Housing and Human Services will use the inter- department billing system to receive payment for service(s) rendered. xvi. Acquisition purchase prices shall not exceed One Hundred Fiftv and 00/100 Dollars ($150.000.00) per residential unit. A single family residential unit consists of one (l) unit, a duplex consists of two (2) units, a triplex consists ofthree (3) units and a multi-unit property may consist of a number of any number of units greater than one (1). Any acquisition purchase price in excess of the aforementioned limit must be specifically approved by the Collier County Board of County Commissioners. xvii. The Chairman of the Board of County Commissioners is authorized to execute Agreements for Sale and Purchase for the acquisition of residential properties at purchase prices in accordance with the Collier County NSP Administrative Plan, based upon appraised values, and as approved by the County Attorney's Office, through February 13, 2013. C. Rehabilitation i. Rehabilitation Specialist to perform site inspection and prepare Bid Specification Form. ii. Rehabilitation Specialist to ensure contractor access to property. iii. Housing and Human Services to work with Purchasing Department, as needed, to procure bids for rehabilitation projects. vi. Housing and Human Services to approve winning bid for projects. vii. Rehabilitation Specialist to notify Collier County Sherriff's Office of acquired residential properties if, in the opinion of Housing and Human Service, the newly acquired property is deemed a threat to health, safety or welfare of Collier County. viii. Housing and Human Services to transfer utilities to Collier County. ix. Grant Support Specialist may notify property maintenance vendor of newly acquired residential properties and may add properties to Community Watch Program, as needed. x. Rehabilitation costs shall not exceed Fiftv Thousand and 00/100 Dollars ($50.000.00) per residential unit. The Department of Housing and Human Services shall have authority to enter into contracts for rehabilitation not to exceed fifty-thousand dollars ($50,000.00). The Purchasing Department shall have authority to enter into contracts for rehabilitation not to exceed two hundred thousand dollars ($200,000.00). Any rehabilitation expenditures in excess of the aforementioned limits per unit must be specifically approved by the Collier County Board of County Commissioners. xi. Payment for eligible activities will be governed by Section X - Purchasing Policy. D. Homeownership Assistance i. Housing Outreach Coordinator to qualify clients interested in Homeownership Assistance. ii. Housing and Human Services to use department approved checklist to ensure NSP activities are documented, validated and in compliance with grant requirements. Page 10 of 17 iii. Housing Manager to approve all requests as eligible. iv. SHIP Loan Processor to prepare request for direct payment. Check to be issued jointly to closing agent and c1ient{s). v. All households assisted not to exceed 120 percent Area Median Income (AMI). vi. All assisted households to complete at least eight (8) hours of homebuyer education from a HUD-approved Housing Counseling Agency. vii. Homeownership Assistance shall not exceed Fiftv Thousand and 00/100 Dollars ($50.000.00). The Department of Housing and Human Services shall have authority to enter into contracts, agreements and security instruments for homeownership assistance not to exceed fifty-thousand dollars ($50,OOO.OO). Any homeownership assistance amounts in excess of the aforementioned limits per unit must be specifically approved by the Collier County Board of County Commissioners. viii. Homeownership Assistance may not exceed fifty (50) percent of the required down payment. E. Demolition i. Director of Housing and Human Services, or designee, to approve all demolition activities. ii. Demolition will be considered if the cost to rehabilitate the acquired property is fiscally not feasible. Note that only blighted structures are eligible for demolition. iii. Estimated cost to rehabilitate will be determined by a Bid Specification Form completed by a Rehabilitation Specialist. iv. Following demolition, property may be either placed in a Collier County Land Bank for up to ten (10) years or ownership may be transferred to a local non-profit provider of affordable housing. v. Demolition shall not exceed Twentv Five Thousand and 00/100 Dollars ($25.000.00) per residential structure. The Department of Housing and Human Services shall have authority to enter into contracts for demolition not to exceed twenty-five thousand dollars ($25,OOO.00). Any demolition expenditure in excess of the aforementioned limits per unit must be specifically approved by the Collier County Board of County Commissioners. vi. Payment for eligible activities will be governed by Section X - Purchasing Policy. F. Land Banking i. Director of Housing and Human Services, or designee, to approve all transfers of property to the Collier County Land Bank. ii. Housing and Human Services to partner with Real Property Management to track, report and monitor land bank properties. iii. Housing and Human Services to contract with vendor to maintain property (i.e. lawn maintenance, etc.). iv. A land bank may not hold a property for more than ten (10) years without obligating the property for a specific, eligible redevelopment of that property in accordance with NSP requirements. G. Transfer of ProperfJI i. Housing and Human Services will maintain a list of completed homes available for sale/rental and a list of homes currently under rehabilitation with an estimated availability date. ii. All interested purchasers shall be pre-qualified by HousiQg and Human Services. Furthermore, Housing and Human Services will maintain a list of potential purchasers interested in purchase and NSP assisted home, arranged in chronological order of qualification. Page 11 of 17 Hi. Purchasers of NSP assisted residential dwelling units must have a household income of 120 percent of area median income or less. iv. Persons wishing to purchase an NSP assisted home will be served on a first-come, first- served basis once eligibility and readiness to purchase has been established. v. Housing and Human Services will"match" qualified potential purchasers with properties acquired under NSP, and will provide Real Property Management with the details of any match. vi. The maximum sales price for a property is determined by aggregating all costs of acquisition, rehabilitation, and redevelopment (including related activity delivery costs, which generally may include, among other items, costs related to the sale of the property). vii. Purchasers of NSP assisted residential dwelling units must obtain a first mortgage, as needed, conforming to the loan conditions and requirements as determined by Housing and Human Services. viii. Upon determination of a match, Real Property Management will prepare a standard Agreement for Sale and Purchase incorporating all details of the transaction. Each Agreement for Sale and Purchase shall be approved by the Director of Housing and Human Services, or his/her designee, and by the County Attorney's Office for form and legal sufficiency prior to execution. ix. Purchasers shall be responsible for all closing costs involved in any property transfer, and the Agreement for Sale and Purchase will reflect this provision. x. Following appropriate approval, Real Property Management shall supervise the execution of the Agreement for Sale and Purchase. Purchasers must provide at least One Thousand and 00/100 Dollars ($1.000) earnest money deposit at the time of purchaser's execution of the Agreement for Sale and Purchase. xi. Earnest money deposits will be held in escrow by the Title Company selected by Real Property Management to assist in the closing of each individual transaction. Any Title Company selected shall be a County approved vendor. xii. Real Property Management will prepare and/or review all documentation required for the closing of transfer transactions, and will coordinate with the County Attorney's Office to obtain approval of all documents for form and legal sufficiency. Real Property Management will obtain proper execution of all documents. xiii. The Chairman of the Board of County Commissioners is authorized to execute Agreements for Sale and Purchase, Statutory Deeds, and any and all other documents necessary for the transfer of residential properties in accordance with this Administrative Plan. xiv. Real Property Management will coordinate with the title companies and/or closing agents, to assure proper closing of all transfer transactions, and will deliver closing proceeds as Housing and Human Services shall direct. xv. Proceeds from the transfer of properties are considered program income as described in Section XIII - Program Income of this Administrative Plan. xvi. If a property is transferred to a non-profit provider of affordable housing and subsequently rented, the maximum affordable rent shall not exceed the Fair Market Rents (FMR) as published annually by the U.S. Department of Housing and Urban Development for the Naples-Marco Island MSA. Any revenue in excess of allowable costs shall be returned to Collier County as program income. xvii. Housing and Human Services, in conjunction with Real Property Management and the County Attorney's Office, may seek Board approval of an Ordinance establishing policies, procedures and standard forms to be used by the Board of County Commissioners when selling and conveying real property acquired under the NSP or another State or Federal Page 12 of 17 grant program. In the event of a conflict with this Administrative Plan, the adopted, Board approved Ordinance shall take precedent. IX. PROGRAM PROCEDURES A. General i. Director of Housing and Human Services has responsibility for management and coordination of all aspects of the eollier County NSP. ii. Financial duties and responsibilities must be separated so that no one employee has sole control over cash receipts, disbursements, payroll, reconciliation, etc. Hi. HUD has granted permission for grantees to incur pre-award costs effective September 30, 2008. iv. The NSP allows ten (10) percent of the gross grant amount plus ten (10) percent of program income to be used for general administration and planning costs as defined at 24 CFR 570.205 and 206. i. Rehabilitation Specialist will perform inspection of all properties considered for acquisition by Housing and Human Services. H. Inspection will be performed using the HUD Housing Quality Standard (HQS) Inspection Form or other form appropriate for site inspection. iii. Housing and Human Services may contract with vendor to evaluate mold mitigation needs on acquired properties. iv. Rehabilitation Specialist may perform periodic inspections throughout the rehabilitation period. v. Inspection and approval of completed work must be completed by Housing and Human Services prior to issuance of partial or final payment. vi. Inspection will ensure compliance with lead-based paint procedures. vii. Housing and Human Services will ensure all code enforcement violations for acquired properties are remedied prior to transfer out of County ownership. viii. At a minimum, the Department of Housing and Human Services intends to administer all NSP related activities during the initial eighteen (18) months under County control and operation. B. Environmental Review i. All properties proposed for acquisition must comply with the environmental review requirements pursuant to 24 CFR part 58. C. Change Orders i. All changes to contracts subject to the provisions of the Collier County Purchasing Policy shall be processed in accordance with that policy and the County's Procurement Administrative Procedures. ii. Housing and Human Services may approve administratively a contract extension up to six (6) months from date of original contract or agreement execution. Hi. Extensions greater than six (6) months time must be approved by the Collier County Board of County Commissioners. iv. Real Property Management may approve administratively contract extensions relating to real property acquisition and transfer. D. Pavment [excluding real property) i. Housing and Human Services shall present the Clerk's Finance Department with Request for Payment packages and/or process requests for payment against established Purchase Orders. Page 13 of 17 ii. Progress payments, as approved by Housing and Human Services, may be made directly to a vendor or organization for any NSP eligible activity. iii. Payment for eligible work tasks and/or activities may be made directly to the provider of the service{s), as approved by Housing and Human Services. iv. Eligible activities are those outlined in the U.S. Department of Housing and Urban Development Docket No. FR-5255-N-01. v. Any performance milestones are in effect for program monitoring requirements only, and as such, are used by Housing and Human Services, HUD and other grantor agencies as general target goals rather than strict performance requirements. E. Final Inspection i. Upon completion of all rehabilitation work, Rehabilitation Specialist will issue a Certificate of Final Inspection. ii. Contractors will provide Housing and Human Services all requested and required release of liens, certificate of occupancy and any other construction related close-out documents. F. Monitoring CountJ' Owned Properties i. Once title is transferred to Collier County, properties may be placed on the Community Watch Program list. ii. Housing and Human Services will work with Purchasing to properly procure home maintenance services for all County owned properties. Services may include, but not be limited to, lawn care maintenance, routine site inspections, lock changing and post- construction cleanup. iii. Collier County Sheriffs office will be notified of all properties currently owned by Collier County, if, in the opinion of Housing and Human Service, the newly acquired property is deemed a threat to health, safety or welfare of Collier County. iv. Housing and Human Services' Rehabilitation Specialist will make regular site visits to monitor property conditions and ensure contracted work is on schedule and being completed as planned. G. Transfer of ProperfJI i. Housing and Human Services will maintain a list of completed homes available for sale/rental and a list of homes currently under construction with an estimated availability date. ii. Persons wishing to purchase an NSP assisted home will be served on a first-come-first served basis once eligibility and readiness to purchase has been secured. iii. Purchasers shall be responsible for all closing costs involved in property transfer. iv. To facilitate the sale of an NSP assisted property, Collier County and purchaser will enter into a standard Agreement for Sale and Purchase through Real Property Management. v. Purchasers must provide at least a One Thousand and 00/100 Dollar ($1.000.00) deposit which will be applied to the closing costs. vi. All interested purchasers to be pre-qualified by Housing and Human Services. X. PURCHASING POLICY Collier County's Department of Housing and Human Services will employ the following Purchasing Policy for management of the NSP Program: i. Acquisition of Real Property a. Real Property Management shall have authority to negotiate the acquisition of real property eligible for the Collier County NSP. Page 14 of 17 b. Real Property Management, or designee, shall negotiate with lenders to obtain acceptance of approved offers to purchase, and will prepare Agreements for Sale and Purchase. Housing and Human Services or Real Property Management may approve administratively a contract extension up to six (6) months from date of original contract or agreement execution. c. Agreements for Sale and Purchase will contain appropriate contingencies regarding marketable title, environmental review, and other due diligence items, and must be approved by the eounty Attorney's Office for form and legal sufficiency. Interpretation of executed agreements and other documentation shall be the exclusive responsibility of the County Attorney's Office. d. Acquisition purchase prices shall not exceed One Hundred Fiftv Thousand and 00/100 Dollars ($150.000.00) per residential unit. A single family residential unit consists of one (1) unit, a duplex consists of two (2) units, a triplex consists of three (3) units and a multi-unit property may consist of a number of any number of units greater than one (1). Any acquisition purchase price in excess of the aforementioned limit must be specifically approved by the Collier County Board of County Commissioners. e. The Chairman of the Board of County Commissioner is authorized to execute Agreements for Sale and Purchase for the acquisition of residential properties at purchase prices in accordable with the Collier County NSP Administrative Plan, based upon appraised values, and as approved by the County Attorney's Office, through February 13, 2013. ii. Other Purchases (excluding Real Property) a. All purchases, excluding real property, under the NSP shall be procured in accordable with the County's Purchase Policy and the County's Procurement Administration Procedures. b. All purchases, excluding real property, of Two Hundred Thousand and 00/100 Dollars ($200.000.00) or less under section X(ii)(a) may be awarded by the Purchasing/General Services Director. c. All purchases, excluding real property, exceeding Two Hundred Thousand and 00/100 Dollars ($200.000.00) included under section X(ii){a) shall be awarded by the Board of County Commissioners. XI. MARKETING PROGRAM Collier County's Department of Housing and Human Services will actively market the Neighborhood Stabilization Program. The purpose of the marketing program is to raise community awareness of the program's availability, locate qualified and interested residents in the program, inform local non-profit providers of affordable housing about potential program opportunities and involve our local contractors and tradesmen. The Collier County NSP will seek to increase the availability of affordable housing while also stimulating local businesses. The Department of Housing and Human Service may market the program through newspaper advertisements, Collier TV, local fairs and scheduled events. Housing and Human Services will work with the Public Service Public Information Officer, as well as the Communication and Customer Relations Department. The Director of Housing and Human Services, or designee, will work with the Public Services Public Information Officer to approve all marketing activities and expenses in advance. Page 15 of 17 XII. REPORTING The U.S. Department of Housing and Urban Development (HUD) requires regular reporting on each NSP grant through the Disaster Recovery Grant Reporting (DRGR) system. For NSP only, HUD is waiving the annual reporting requirements of the consolidated plan to allow for collection of more regular information on various aspects of the uses of funds and of the activities funded with NSP dollars. To collect these data elements and to meet reporting requirements, HUD is requiring Collier County to report on its NSP funds using the online DRGR system, a streamlined, Internet-based format. The NSP program requires quarterly reports. Such reports are due not later than thirty (30) days following the end of each calendar quarter with the first such report due not later than July 31, 2009, for the quarter ending June 30, 2009. Each quarterly report must be posted on Collier County's website so that the public may have ready access to the information. In addition to this quarterly performance reporting, Collier County will report monthly on its NSP obligations and expenditures beginning thirty (30) days after the end of the 15th month following receipt of funds, and continuing until reported total obligations are equal to or great than Collier County's total NSP award. For more information please refer to the October 6, 2008 Federal Register Notice (73 FR 58341, Section 0, Reporting). XIII. PROGRAM INCOME Revenue received by Collier County (as defined at 24 CFR 570.500(c)) that is directly generated from the use of CDBG funds (which term includes NSP grant funds) constitutes program income. On June 11, 2009, HUD issued a revised notice (Docket No. FR-5255-N-02)) implementing substantive revisions to the October 6, 2008 notice, primarily as a result of changes to NSP made by Title XII of Division A of the American Recovery and Reinvestment Act of 2009. The effective date of the substantive revisions, as determined by HUD, remains as published in the Federal Register on October 6, 2008. Section 2301(d)(4) of HERA, which established requirements for the disposition of revenue generated by NSP assisted activities, was repealed by the Recovery Act. As a result of this repeal, revenue generated from the use of NSP funds and received by a private individual or other entity that is not a subrecipient is not required to be returned to grantee as was required by section 2301{d){4). A further result of this provision is that program income received after July 30, 2013 is not required to be returned to HUD for deposit in the Treasury. However, the program income requirements of the CDBG program are still applicable to income directly generated from the use of NAP funds and received by grantees or subrecipients. Program income received before July 30, 2013 may be retained by Collier County and treated as additional CDBG funds and used in accordance with NSP regulations. Substantially all program income must be disbursed for eligible NSP activities before additional cash withdrawals are made from the U.S. Treasury. HUD permits Collier County's Department of Housing and Human Services to use ten (10) percent of the NSP grant and ten (10) percent of program income earned for general administration and planning activities as those are defined at 24 CFR 570.205 and 206. The ten (10) percent limitation applies to the grant as a whole. Page 16 of 17 The Collier County Neighborhood Stabilization Program Administrative Plan is adopted this 2ih day of October, 2009. ATTEST:. . < . ' " , . , . ~ ') DWIGHT E. ~R?~tl'~~~""" ,,~) ....., J:'. , ;' ~",. .......t'(?".... .t ,..., f~'~ ~.......~ . ~ ". BY: ' " ,~.J. " ':': _ _': ~~ ,f<.v,~) _ . : _.' "f",Mttit:, a~h"." '. Plfff:CI:.ERK r..tiitA -. t ,- " APPR_~~~~:~ '.;.~- AND LEGAL S~~,,~f~~~X:~.:),;~ BY: co~!f!::ji~}, ' ASSIST ANC[ C~,N;1jYA TTORN EY i'-".-,'_..,..,..> . .' BOARD OF COUNTY COMMISSIONERS COLLIER COUN FLORIDA BY: ~ ~~/2009 DONNA FIALA, CHAIRMAN Page 17 of 17