Agenda 01/24/2017 Item #16D501/24/2017
EXECUTIVE SUMMARY
Recommendation to approve a budget amendment to recognize program income for the
Community Development Block Grant in the amount of $23,434.12 and approve any necessary
budget amendments.
OBJECTIVE: To recognize program income for the Community Development Block Grant (CDBG)
program.
CONSIDERATIONS: Habitat for Humanity of Naples Florida was granted a $235,000 CDBG award
effective May 14, 2013 (Agenda Item 16D11) and a $240,000 award effective September 23, 2014
(Agenda Item 16D1). Both awards provided for rehabilitation and replacement of roofs for low-income
homeowners in Collier County. The programs require that the home be maintained by the same property
owner for the full term of the affordability period specified in the lien agreement, or repayment is
required. Three homeowners have sold their properties. As a result, $23,434.12 in CDBG program
income has been repaid to the County. These repaid funds will be reallocated to future eligible CDBG
programs and projects.
FISCAL IMPACT: A budget amendment is necessary to recognize the program income. Of the total,
$14,446.01 will be recognized in Fund 705, Project No. 33364 and $8,988.11 in Fund 705, Project No.
33434.
LEGAL CONSIDERATIONS: No legal issues are raised by this item which requires a majority vote
and is ready for Board action. - JAB
GROWTH MANAGEMENT IMPACT: This action is consistent with the Growth Management Plan.
RECOMMENDATION: That the Board of County Commissioners authorizes a budget amendment
recognizing $23,434.12 in program income for the Community Development Block Grant Funds.
Prepared by: Blanca Aquino Luque, Senior Accountant, Community and Human Services
ATTACHMENT(S)
1. Re-Roof PI documents (PDF)
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Packet Pg. 732
01/24/2017
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.D.5
Item Summary: Recommendation to approve a budget amendment to recognize program income
for the Community Development Block Grant; total fiscal impact of $23,434.12.
Meeting Date: 01/24/2017
Prepared by:
Title: Accountant – Community & Human Services
Name: Blanca Aquino Luque
12/27/2016 4:12 PM
Submitted by:
Title: Division Director - Cmnty & Human Svc – Public Services Department
Name: Kimberley Grant
12/27/2016 4:12 PM
Approved By:
Review:
Public Services Department Kimberley Grant Additional Reviewer Completed 01/03/2017 10:44 AM
Community & Human Services Maggie Lopez Additional Reviewer Completed 01/03/2017 1:13 PM
Public Services Department Joshua Hammond Additional Reviewer Completed 01/04/2017 9:46 AM
Public Services Department Amanda O. Townsend Additional Reviewer Completed 01/04/2017 2:28 PM
Public Services Department Hailey Margarita Alonso Additional Reviewer Completed 01/10/2017 11:47 AM
Public Services Department Steve Carnell Level 2 Division Administrator Review Completed 01/10/2017 11:57 AM
County Attorney's Office Jennifer Belpedio Level 2 Attorney of Record Review Completed 01/11/2017 9:28 AM
Grants Erica Robinson Level 2 Grants Review Completed 01/11/2017 10:38 AM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 01/11/2017 11:29 AM
Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 01/11/2017 11:54 AM
Budget and Management Office Ed Finn Additional Reviewer Completed 01/13/2017 12:38 PM
Grants Therese Stanley Additional Reviewer Completed 01/13/2017 4:23 PM
County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 01/16/2017 10:28 AM
Board of County Commissioners MaryJo Brock Meeting Pending 01/24/2017 9:00 AM
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Public Selices Department
Communitv & Human Services Division
March 18, 2016
Nick Kouloheras
Habitat for Humanity
I I 145 Tamiami Trail E
Naples FL 34113
Via U.S. Mail and email
RE:CDBC Habital for Humanity Re-roof Project 2013
cDl2-03 . #441
Dear Nick,
As follow'up to my valious convenations with you and Cormac, I am writing to request the retum of CDBG funds
provided under the CDBG Re-roofurg Projecl 2013, CD12-03, *t441, for Ms. Ana Afanador, of5419 Bryant Ave.,
Naples, FL 341 13. During a routine annual monitoring of this project, staff found that the homeowner transfe6ed
the property to a trust and did not continue to occupy the home as principal residence for the five year period
required in her program assistance agreement aud lien agreement, as detailed below.
On l1lA6D0l3, Ms. Afanador signed a CDBG Re-roofing hogram Assistance Agreement and Lien Agreement in
ordet for Habitat for Humanity of Collier County to rchabilitate or replace the roof at her primary residence located
at 5419 Bryant Ave., Naples, FL 341 13. The total amount secued by the lien was $6,344.00. Ms. Afanador was
provided a no interest lien with forgiveness of the $6,344.00, if she continued to occupy the residence, as her
permanent resid€nce for a period of five years from the date of the lien, or I l/06201 8, and she did not transfer. sell
or refinance the property, prior to that date.
Subs€quently, on 03121D014,135 days after signing the Program Assistance Agreement and Lien Agreement, Ms.
Afanador transferred the property from herself to the Ana M. Afanador Revocable Trust, violating Iiem #5 of her
Lien Agreement which prohibits the transfer or sale ofthe property.
Additionally, at some point prior to our revjew, Ms. Afanador changed the tax status and address ofrecord for this
p]o?erty so that there was no longer a Homestead Exemption. Her new address of record is l7l9 Lockwood Ave.,
Orlando, FL 32312, a property she purchased on l0/01n009, some years earlier. As she is no longer residing at the
Bryant Av€. residence, she is also violating ltem #4 ofher Lien Agreement whicb requires continuous occupancy as
primary residence, during the lien period.
Consequently, we have no altemative but to request the r€turn of 95,8?0.61 . As the Lien allows for a I /60ft prorating
ofthe lien forgiveness, Ms. Afanador has a credit of4.4?? months, leaving 55.523 months to be repaid, at jmonthly
rate of$ 105.733.
Also, seParate from the retum ofthe funds, there are several programmatic questions raised by this situation that we
also need to pursue. They are:
I. Did Ms. Afanador declare the Lockwood Ave., Orlando property on her income verification
documentation? Ifnot, what steps ar€ needed in the income verification Drocess to €nsure that all assets are
declared?
Cornmunity & Hwnao Services Division.3339 TamiamiTrail East, Suile 211 . Naples, Florida 34i12-S361
239-2524ARE (2273). 23V252-CAFi122331.239252-4230 (RSVp) . wurw.co iergov.neVhumanservices
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Packet Pg. 734 Attachment: Re-Roof PI documents (2524 : Budget Amendment to Recognize Program Income for CDBG)
ls Habitat for Humanity reviewing these liens at least annually to confirm that the program participants are
maintaining permanent rcsidency in these properties?
My understanding is that Habitat for Humanity reviews the liens and processes the lien release*epayment
when a morfgage is paid off, due to the sale of the propefy. In this case, the mofigage had already been
Paid off, without being sold. What internal controls have you developed to ensure that the property does not
fall offof your radar for the purposes of maintaining lien compliance, in the firture?
I am available to discuss these qucstions, at your earliest convenience. I can be reached by phone at23g-252-2gg' or
via email CynthiaKemner@colliergov.net.
Fot' you convenience, included are copies of the Waranty Deed for the transfer of the Naples propert to the trust,
the Special Warranty Deed for the pulchase of the Ollando property, the 2015 Property nppraiier Summary
showing the lack of Homestead Exemption for Naples and the Homestead Exemption cliimed- for the Orlandopropefy' Should you have any additional information that might affect our assessment of this case, please let me
know as soon as possible. Otherwise, please refund the 95,g70.61 with immediate effect.
Sincerely,
/ / tn /-,'\-7 n ft:t<-*,/ \-<-1-t-t-*t +-
Cyrithia Kemner \
Supervisor, Gmnts Compliance Unit
Collier County Govemment
Community and Human Services
3339 East Tamiami Tlail, Bldg, H, Suite 2t I
Naples, FL 34112-5361
239-2s2-2995
CynthiaKemner@colliersov.net
Encl.: As stated.
3.
Kim Crant CHS DiJector
Kristi Sonntag, Manager Federal/State Grants
Rosa Munoz. Grant Coordinator
Maggie Lopez, Accounting Supervisor
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Packet Pg. 742 Attachment: Re-Roof PI documents (2524 : Budget Amendment to Recognize Program Income for CDBG)