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Backup Documents 03/11/2014 Item #16D7 ORIGINAL DOCUMENTS CHECKLIST & ROUTING SLIP TO ACCOMPANY ALL ORIGINAL DOCUMENTS SENT TO THE BOARD OF COUNTY COMMISSIONERS OFFICE FOR SIGN Q 7 **NEW** ROUTING SLIP Complete routing lines#1 through#2 as appropriate for additional signatures,dates,and/or information needed. If the document is already complete with the exception of the Chairman's signature,draw a line through routing lines#1 through#2,complete the checklist,and forward to the County Attorney Office. Route to Addressee(s) (List in routing order) Office Initials Date 1. Geoffrey Magon HHVS 3/12/14 2. Jennifer B. Belpedio, ACA Office located in HHVS 31122 1, County Attorney Office Department 3. BCC Office Board of County b Commissioners �\r1{/5/ 3\‘41\1 4. Minutes and Records Clerk of Court's Office 3(ILt(i Q 5 PRIMARY CONTACT INFORMATION Normally the primary contact is the person who created/prepared the Executive Summary. Primary contact information is needed in the event one of the addressees above,may need to contact staff for additional or missing information. Name of Primary Staff Geoffrey Magon,kakc,L.3 g‘ Phone Number 252-2336 Contact/ Department Agenda Date Item was 3/11/14 Agenda Item Number 16D7 Approved by the BCC Type of Document '3-P—_.� Number of Original � � ' Attached Documents Attached PO number or account number if document is V1.7. - to be recorded INSTRUCTIONS & CHECKLIST Initial the Yes column or mark"N/A"in the Not Applicable column,whichever is Yes N/A(Not appropriate. (Initial)/ Applicable) 1. Does the document require the chairman's original signature? YES ✓ 2. Does the document need to be sent to another agency for additional signatures? If yes, NO V provide the Contact Information(Name;Agency;Address;Phone)on an attached sheet. 3. Original document has been signed/initialed for legal sufficiency. (All documents to be signed by the Chairman,with the exception of most letters,must be reviewed and signed YES by the Office of the County Attorney. 4. All handwritten strike-through and revisions have been initialed by the County Attorney's .E_ I u Office and all other parties except the BCC Chairman and the Clerk to the Board 5. The Chairman's signature line date has been entered as the date of BCC approval of the YES document or the final negotiated contract date whichever is applicable. 6. "Sign here"tabs are placed on the appropriate pages indicating where the Chairman's YES signature and initials are required. 7. In most cases(some contracts are an exception),the original document and this routing slip 1J 1,A should be provided to the County Attorney Office at the time the item is input into SIRE. Some documents are time sensitive and require forwarding to Tallahassee within a certain time frame or the BCC's actions are nullified. Be aware of your deadlines! 8. The document was approved by the BCC on 3/11/14 (enter date)and all ✓ WA changes made during the meeting have been incorporated in the attached document. _�' The County Attorney's Office has reviewed the changes,if applicable. ith 9. Initials of attorney verifying that the attached document is the version approved by the N143snot BCC,all changes directed by the BCC have been made,and the document is ready for the ' I� l aka Chairman's signature. I this WO. l:Forms/County Forms/BCC Forms/Original Documents Routing Slip WWS Original 9.03.04,Revised 1.26.05,Revised 2.24.05;Revised 11/30/12 Ann P. Jennejohn 16 0 7 From: Ann P.Jennejohn Sent: Friday, March 14, 2014 1:07 PM To: 'marjorie student-stirling' (stirlinglawfirm @gmail.com); 'nkouloheras @hfhcollier.com' Subject: Collier County Stabilization Program Developer Agreement Amendment Attachments: NSP Program 3 Agreement (Amendment No.4).pdf Hi Margie & Nick, Attached for your records is a copy of the Collier County/Habitat for Humanity Agreement (Amendment #4) for the N5P 3 program, regarding HUD closeout guidelines, approved by the Board of County Commissioners this past Tuesday, March 11, 2014. Feel free to call me if you have any questions. Have a nice weekend! Ann Jennejohn, Deputy Clerk Clerk of the Circuit Court Clerk of the Value Adjustment Board Collier County Minutes & Records Dept. 239-252-8406 239-252-8408 (Fax) 1 16 D7 MEMORANDUM Date: March 14, 2014 To: Geoffrey Magon, Grants Coordinator Housing Human & Veteran Services From: Ann Jennejohn, Deputy Clerk Minutes & Records Department Re: Amendment #4 to the Developer Agreement with Habitat for Humanity of Collier County for the NSP3 Program regarding HUD closeout guidelines Attached for your records is a copy of the document referenced above, (Item #16D7) approved by the Board of County Commissioners on March 11, 2014. The original is being held in the Minutes and Records Department for the Board's Official Record. If you have any questions, please contact me at 252-8406. Thank you. Attachment 1607 NEIGHBORHOOD STABILIZATION PROGRAM 3 AMENDMENT NO. 4 TO DEVELOPER AGREEMENT BETWEEN COLLIER COUNTY AND HABITAT FOR HUMANITY OF COLLIER COUNTY, INC. CFDA: 14.218 THIS AMENDMENT, made and entered into on this 1I day of Ta&cM 2014 to the subject agreement shall be by and between the parties to the original Agreement, Habitat for Humanity of Collier County, Inc, EIN 59-1834379, (d/b/a/ Habitat for Humanity), authorized to do business in the State of Florida, whose business address is 11145 Tamiami Trail E Naples FL 34113, (hereinafter called the "Developer") and Collier County,a political subdivision of the State of Florida, Collier County,Naples(hereinafter called the"County"or"Grantee"). Statement of Understanding RE: NEIGHBORHOOD STABILIZATION PROGRAM B-11UN-12-0003 In order to continue the services provided for in the original Agreement document referenced above,the parties agree to amend the Agreement as follows: Words Struck Through are deleted; Words Underlined are added: (Dollar amounts have original underlines) WITNESSETH: H. Terms and Conditions of the Funding D. Deadlines — Timely completion of the work specified in this agreement is an integral and essential part of performance. The NSP-3 funds are subject to Federal deadlines and failure to comply could result in the loss of the Federal funds. By the acceptance and execution of this agreement, it is understood and agreed by the DEVELOPER that the PROJECT will be completed as expeditiously as possible and that the DEVELOPER will make every effort to ensure that the project will proceed and will not be delayed. Failure to meet these deadlines can result in cancellation of this contract and the revocation of NSP-3 funds. 1. Project Expenditure Deadlines All project activities and all expenditures of NSP 3 funds must be completed by March 11, 2014. HUD requires that an amount equal to 100% of the original grant amount must be expended by March 11, 2014. The Developer must assist the County in meeting the expenditure deadline as follows: If checked the additional interim deadlines apply to project expenditures: ® Amount equal to 50%of NSP-3 original 03/11/2013 grant award ids expended a awn by the County 1 [ Page 1607 ® Amount equal to 100% of NSP-3 03/11/2014 original grant award funds expended and drawn by the County ® PROJECT activities completed Prior to Project Closeout III. Project Requirements The DEVELOPER agrees to comply with all requirements of the NSP-3 as stated in the NSP-3 Notice and CDBG regulations, including but not limited to the following: A. NSP-3 Eligible Use, CDBG National Objective and Eligible Activities — The DEVELOPER will ensure and document that its NSP-3 activities meet LMMI national objective, eligible use, allowable cost, and eligible activity requirements of the NSP-3 Notices & CDBG Regulations. The DEVELOPER will ensure that any expenditure of NSP-3 funds will be in compliance with the requirements, and acknowledges that NSP-3 funds will only be provided as reimbursement for eligible costs incurred, including actual expenditures or invoices for work completed. The DEVELOPER will ensure that any Land Banking activities will follow the Land Bank Plan as described in"Exhibit C" * * Signature page to Follow 2IPage U-S `3 1607 IN WITNESS WHEREOF, the GRANTEE and DEVELOPER, have each, respectively, by an authorized person or agent, hereunder set their hands and seals on the date and year first above written. ATTEST:```j ` ?,. } BOARD OF COUNTY COMMISSIONERS Dwight E. Brock,Clerk of Courts COLLIER OUN Y,FLORIDA Byf !C. By:_ Dated: grieb 1111 Tom Henning, C airm . "(SEAM as to hairman,s signature only. Habitat for Humanity of Collier County, Inc. First Witness A Florida not-for-profit corporation By:g2/ '7'i Zl� y- TType/print witness ameT Print: (L,c �/ � �l- errs Title: Cu A Second W. ess • bl ci? Approved as to form and legality: Type/print witness namel Jennifer A. Belpedio Assistant County Attorney O.( 7 �p\' 2\'� II Item# Agenda 3-�1-t� Date Date Recd ,ep ig 3IPage 1607 EXHIBIT C. Land Bank Plan Neighborhood Stabilization Program Land Bank Report and Recommendations Collier County, Florida October 25, 2013 Report by Gladys Schneider TDA TA NSP3-018-1 Contents Overview 5 Current Status 5 Summary of Recommendations 6 Land Bank Plan Guidelines 6 Goal of the Land Bank 6 National Objectives 6 Land Bank Oversight 7 Ten Year Limitation on NSP Land Bank Properties 7 Side Lot Disposition 7 Future acquisition of properties for the Land Bank 7 Responsibilities and Requirements 7 APPENDIX l 9 APPENDIX 2 9 APPENDIX 3 10 4IPage 1607 Overview This report presents the results of technical assistance provided to Collier County in the consideration of forming an NSF'Land Bank in conjunction with Habitat for Humanity of Collier County (Habitat). Several discussions were held with County Staff and Habitat representatives, and both provided documents for the review of land bank policies, developer agreements, and current land bank inventory. This report provides information on the current situation, recommendations, and proposed land bank plan guidelines. Appendices provide the land bank inventory in the format that would be included in the Land Bank Plan, a summary of the Collier County and Habitat for Humanity NSP plans and agreements and a summary of NSP regulatory citations regarding land banks. Current Status Collier County authorized the formation and operation of a land bank in its Neighborhood Stabilization Program (NSP). Habitat currently holds title to vacant residential lots that were purchased with Collier County NSP3 funds. As the program near completion, the County and Habitat need to develop specific program policies to carry out the Land Bank strategy that was authorized in the NSF program. The inventories of properties proposed for the NSP Land Bank are included in Appendix I. Collier County's NSP3 Action Plan provide for the formation and operation of a land bank (Appendix 2). If enacted, the County would adopt a Land Bank Plan and enter into agreement with Habitat for Humanity to implement the program. Generally speaking, the Land Bank Plan is designed to carry out the goals of the Neighborhood Stabilization Program (NSP) with the purpose of removing blight, providing affordable housing, and promoting redevelopment and revitalization. The Housing and Economic Recovery Act of 2008 (Division B, Title III) is the authorizing legislation for land banks as an eligible use of NSP funding with certain limitations. Under this legislation, a Land Bank is defined as: Land bank: A land bank is a governmental or nongovernmental nonprofit entity established, at least in part, to assemble, temporarily manage, and dispose of vacant land for the purpose of stabilizing neighborhoods and encouraging re-use or redevelopment of urban property. For the purposes of NSF, a land bank will operate in a specific, defined geographic area. It will purchase properties that have been foreclosed upon and maintain, assemble,facilitate redevelopment of market, and dispose of the land-banked properties. If the land bank is a governmental entity, it may also maintain foreclosed property that it does not own,provided it charges the owner of the property the full cost of the service or places a lien on the property for the full cost of the service. (see Appendix 3 for further regulatory background on land banks) A Land Bank Plan is an NSP requirement if the County intends to close out its NSP grant and there are NSP assisted properties that have not yet been obligated to an end use that meets one of the NSP applicable National Objectives. By adopting a Land Bank Plan,the County will be able to close out its NSP grants if other close-out requirements are met. A Land Bank Plan will provide guidance to both parties to ensure that program requirements are met and the proposed schedule has proper oversight. Since Habitat already holds title to the NSP properties,the NSP3 Action Plan includes a Land Bank Strategy,there is already a framework for moving forward.Habitat will administer the Land Bank and report to the County on the activities and disposition of the properties. The Land Bank Plan addresses the NSP3 properties and defines the specific end use for their disposition and the 5I Page 16D7 national objective that will be met. The Land Bank guidelines can be included in the Developer Agreements with Habitat, or by a separate agreement. Summary of Recommendations The County should proceed with a Land Bank Plan and Agreement with Habitat for Humanity to guide the completion of the 4 remaining properties that would be included in the land bank program. The County will not need to revise its NSP3 Action Plan as it included Eligible Use C, Land Bank. The Developer Agreements between Habitat and the County authorize land banking activities. There are four NSP3 parcels-all single family residential lots. Habitat intends to complete the NSP3 homes by the end of 2014. These schedules are based upon buyer demand and market conditions. The relatively short anticipated timeframe gives the County some flexibility-it could continue to oversee the eventual completion of the homes under its current agreements,but would not be able to close out their NSP grants. The adoption of a Land Bank Plan and Agreement with Habitat will enable the County to close out their NSP grants if other requirements are complete. A Land Bank Plan would provide a more formal understanding of what is to be completed and by when. There would be a basis for extending the development timeframe if needed, since ten years holding time would be available from the date of grant closeout. The Collier County program has the benefit of fewer scenarios than other NSP land banks in that all of the properties are similar and will be obligated for the development of affordable housing. Side lots,rezoning,re-platting, or other complexities are absent from this situation resulting in a streamlined approach that will require a minimum of administrative procedures. There was some mention that some of the lots may turn out to be wetlands and unbuildable. That possibility is addressed in the guidelines suggested. Finally,the County has a good working relationship with Habitat and the Land Bank Plan would be an extension of that relationship to mutual benefit. Land Bank Plan Guidelines The following guidelines are intended to provide direction for the implementation of the NSP3 program requirements as part of the agreement established between Collier County and Habitat for Humanity of Collier. It is recommended that these guidelines be included as an amendment to the effective Developer Agreement between Collier County and Habitat for Humanity. Goal of the Land Bank The goal of the Land Bank is to acquire,maintain and eventually dispose of NSP assisted properties within a designated time frame to stabilize neighborhoods in specified geographic areas in accordance with Neighborhood Stabilization Program rules and regulations. National Objectives The acquisition,rehabilitation,demolition and reconstruction of real property are eligible activities with NSP funds,but the end use must also meet a National Objective. Acquisition and demolition alone do not meet a national objective. By including an NSP property in a Land Bank,a period of ten years holding is allowed under the program rules before a national objective must be met. When all NSP grant activities have been completed,and remaining parcels that have not yet met a national objective are placed in a Land Bank,the grantee may close out their 6( Page 1607 grant with HUD. This relieves the Grantee from ongoing grants administration responsibilities, even though there may still be program income returning to the Grantee. The following National Objectives are appropriate for the Collier County NSP Land Bank; Housing Activities. LMMH. Providing or improving permanent residential structures that will be serving individuals or households whose gross annual income does not exceed 120%of the area median income adjusted for family size and as published annually by HUD. Examples include acquisition, rehabilitation,demolition and reconstruction of affordable homes. Area Benefits.LMMA. Activities that benefit all of the residents of a primarily residential area in which at least 51%of the residents have incomes at or below 120%of the area median income. Examples include the donation or sale of a parcel for open space or conservation. Land Bank Oversight The Collier County Department of Housing,Human and Veteran Services will have the responsibility to monitor the implementation of the Land Bank Plan. Habitat for Humanity of Collier County,Inc. will be responsible for the maintenance and disposition of the properties. Ten Year Limitation on NSP Land Bank Properties All land bank properties must meet a national objective within ten years of the closeout date of the applicable NSP I or NSP3 grant.Any properties that have not met a national objective will immediately be used for CDBG purposes. The NSP Land Bank Properties will revert ten years from closeout to Collier County if they have not met a National Objective. Side Lot Disposition The Collier County Land Bank program does not foresee the sale,donation,or other transfer of land bank properties to adjacent property owners. Future acquisition of properties for the Land Bank The Collier County Land Bank program does not foresee increasing the inventory of non-NSP properties in the NSP Land Bank. Responsibilities and Requirements 1. Habitat is responsible for all maintenance and expenses associated with the stewardship of the land bank properties. 2. Habitat is responsible for all title and transfer expenses associated with the disposition of the land bank properties. 3. Habitat will construct homes on buildable properties by the date specified.Purchasers will be NSP eligible beneficiaries. 4. A minimum of 25%of the NSP funds expended will serve households with incomes at or below 50%of the area median income,per Developer Agreements. 7IPage 1607 5. NSP3 funds can be used for acquisition and demolition. Reconstruction and all other development, maintenance and transfer costs are the responsibility of Habitat. 6. Habitat is responsible for reporting to the County on land bank activities and disposition no less than once annually. 7. Habitat is entitled to a set fee of$10,000 per unit as a developer fee for NSP3 homes. This fee is paid half upon acquisition of the foreclosed property and half upon completion of the home and sale to an eligible beneficiary. 8. The feasibility for eventual development of the properties should be considered to determine if all properties are suitable for residential construction, If not,the properties shall be designated as open space or conservation and Habitat may negotiate a transfer to either a public agency, a nonprofit organization,or may retain title along with full maintenance responsibilities. In order to meet the Area Benefit rule,(LMMA),the use must benefit all the residents of a primarily residential neighborhood in which at least 51%of the residents have incomes at or below 120%of the area median income. Designation of the non-buildable properties as open space or conservation is an appropriate area benefit use. 8IPage CPT 1607 APPENDIX I Land Bank Inventory Parcel NSP Program Location/Address Status End Use and Disposition ID# National Objective Date NSP3 4476 20`1'St. S.W. Vacant Sin 1g_e Family 12/31/2014 lot Ownership kLMMI-I) NSP3 4589 30th Ave Vacant Single Family 12/31/2014 S.W lot Ownership (LMMH) NSP3 1948 45 Terr. Vacant Single Family 12/31/2014 S.W. lot Ownership (LMMH) NSP3 3018 52nd St. S.W. Vacant Single Family 12/31/2014 lot Ownership (LMMH) APPENDIX 2 Land Banking Authority Summary of Collier County NSP3 Plan and Developer Agreement with Habitat for Humanity NSP3 Action Plan,Collier County The Collier County NSP3 Action Plan includes a Land Bank Strategy with a budget of$388,415. The NSP3 program is being implemented through a developer agreement with Habitat for Humanity of Collier County. Habitat has purchased four blighted properties under the land bank strategy-title is held by Habitat and maintenance is being provided at Habitat's own expense. The buildings were demolished and the four lots are vacant. Habitat intends to have new homes built and meet a national objective by December of 2014. Habitat and the County are working together under a Developer Agreement. As such, Habitat holds title to the properties that were acquired by the County, cleared of blighted structures before deeding them to Habitat. NSP3 Developer Agreement,Collier County and Habitat for Humanity of Collier County The initial agreement was executed on 4-24-12 for$3,495,749 for 27 homes. Under this agreement, Habitat was responsible for the acquisition process as well as demolition. There were 3 amendments to the Agreement. Other provisions of the Agreement include: - The maximum NSP reimbursement per unit is$150,000 - 25%of the funding received would be allocated to meeting the low income set-aside - Habitat would receive a$10,000 developer fee per unit, 50%payable upon acquisition and 50%payable upon sale to an eligible buyer - The developer is responsible for acquiring approximately 30 units and conducting demolition as needed 9IPage 1607 - Habitat may retain all project proceeds - Long term affordability is the minimum provided by the NSP statute - Amendment 1 (1/8/13)revised the target areas - Amendment 2(2/12/13) increased units from 27 to 30,added approximately 5 units to Land Banking and demolition as needed,and added as eligible beneficiary middle income households. - Amendment 3 (7/9/13)increased units to approximately 34, adjusted the agreement amount to allow for program income allocations to the Developer. APPENDIX 3 NSP Statutory and Implementing Citations NSP Land Bank Background Information(Unified NSP Notice-75 FR 64322) NSP Definition of Land Bank A land bank is a governmental or nongovernmental nonprofit entity established,at least in part,to assemble, temporarily manage, and dispose of vacant land for the purpose of stabilizing neighborhoods and encouraging re-use or redevelopment of urban property. For the purposes of the NSP, a land bank will operate in a specific, defined geographic area. It will purchase properties that have been abandoned or foreclosed upon and maintain, assemble, facilitate redevelopment of, market, and dispose of the land-banked properties. If the land bank is a governmental entity, it may also maintain abandoned or foreclosed property that it does not own, provided it charges the owner of the property the full cost of the service or places a lien on the property for the full cost of the service. Eligible Uses(Housing and Economic Recovery Act) and NSP Closeout Notice (Nov. 27, 2012 288 FR 70799) • Establish financing mechanisms for purchase and redevelopment of foreclosed upon homes and residential properties, including such mechanisms as soft-seconds, loan loss reserves,and shared-equity loans for low-and moderate-income homebuyers • Purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed upon to sell,rent or redevelop such homes and properties • Establish land banks for homes and residential properties that have been foreclosed upon • Demolish blighted structures • Redevelop demolished or vacant properties Eligible Activities(CDBG) The NSP funds used for land banking must correlate with an eligible activity under 24 CFR 570.201(a)Acquisition&(b)Disposition: A. Acquisition in whole or in part by the recipient, or other public or private nonprofit entity, by purchase, long-term lease, donation, or otherwise, of real property (including air rights, water rights, rights-of-way, easements, and other interests therein)for any public purpose, subject to the limitations of Sec. 570.207. B. Disposition,through sale, lease,donation, or otherwise, of any real property acquired with CDBG funds or its retention for public purposes, including reasonable costs of temporarily managing such property or property acquired under urban renewal, provided that the proceeds from any such disposition shall be program income subject to the requirements set forth in Sec. 570.504. (Temporarily managing 10 ' Page 1607 includes maintenance, assembly, facilitating the redevelopment of, and marketing of land banked properties. NSP funds may be used for basic, reasonable maintenance intended to stabilize the property.) NSP National Oblectives Each NSP activity must meet a National Objective. NSP national objectives include housing activities(LMMH),area benefit activities(LMMAI and limited clientele activities(LMMC).The Closeout Notice added one more-the jobs national objective(LMMJ). Since all of Collier County's land bank parcels are residential,the LMMH and possibly the LMMA would be applicable national objectives. NSP Closeout Notice-Federal Register,November 27,2012(288 FR 70799) The Notice describes closeout requirements and additional regulations that apply to grantees receiving grants under the three rounds of funding under the Neighborhood Stabilization Program. Land Banks are addressed in several parts of the Closeout Notice. I.A.4.c.(iii) The Closeout Agreement between the grantee and HUD must include "a list of real property held in an NSP-assisted land bank", and (iv) if the grantee has assisted a land bank, a plan detailing how the land bank will meet the 10 year maximum holding requirement of Section II.E.2.d of the Unified NSP Notice and Appendix L Section E.2.d of the NSP2 NOFA. IA.2. The Unified NSP Notice was amended to require that grantees report at least annually on the disposition of land bank properties. I.A.2. The start date for the ten year maximum holding period will begin the date of the grant closeout to meet an eligible redevelopment of the property in accordance with NSP requirements. The grantee is required to obligate or otherwise commit the property for a specific use supporting neighborhood stabilization. II.A.2. HUD will provide further direction in reporting and tracking. (subsequent webinars have provided guidance). II.A.2(2)(b). Disposition of Land Bank Property. Properties in a land bank will be considered obligated for redevelopment if the property is: (1) Owned by a local government or nonprofit entity and identified under a Consolidated Plan approved by HUD for a CDBG eligible public improvement such as parks, open space or flood control; (2) Owned by a community land trust to create affordable housing; (3) Transferred to and committed for any other use in the annual Action Plan, subject to all CDBG regulations and no longer part of the NSP program; (4) Designated for affordable housing in accordance with HERA and under development by an eligible development entity which as control of the site and has expended predevelopment funds; (5) Included in a redevelopment plan that has been approved by the local governing body. II.A.2.(2)(c). Any NSP assisted land bank properties remaining in the land bank ten years after the date of grant closeout shall revert entirely to the CDBG program and must be immediately used to meet a national objective or disposed of in accordance with CDBG use of real property requirements at 24 CFR 570.505. 11 ( Page