Agenda 06/24/2014 Item #16D 56/24/2014 16.D.5.
EXECUTIVE SUMMARY
Recommendation to amend the Neighborhood Stabilization Administrative Plan and approve
Amendment 2 to the Developer Agreement with Habitat for Humanity of Collier County, Inc. for
the Neighborhood Stabilization Program 1 and Amendment 5 to the Developer Agreement with
Habitat for Humanity of Collier County, Inc. for the Neighborhood Stabilization Program 3 to
reflect grant program closeout guidelines and clarify appraisal requirements.
OBJECTIVE: To successfully exit the Neighborhood Stabilization Program and provide single - family
homes to low -to- moderate income households.
CONSIDERATIONS: On March 24, 2009, the Board approved the Neighborhood Stabilization
Program (NSP) Administrative Plan (Agenda item IOF). On December 13, 2011, the Board approved an
exit strategy for NSP (Agenda item 10A). One strategy approved by the Board was the conveyance of
NSP properties to willing partners via developer agreements.
On April 24, 2012, the Board approved a Developer Agreement with Habitat for Humanity for the NSP1
program (Agenda item 11B). On April 24, 2012, the Board approved a Developer Agreement with
Habitat for Humanity for the NSP3 program (Agenda item 11B). An appraisal is needed when acquiring a
property and again when disposing of a property to an eligible buyer.
Clarification is needed within the Administrative Plan and the Developer Agreements regarding the
standards and timeframes for proper appraisals. According to the current Agreement and Administrative
Plan an "Appraisal" for both acquisition and disposition is defined as:
An appraisal which meets the criteria specified in the Uniform Relocation Assistance and Real Property
Acquisition Policies Act ( "URA'), as further defined in 49 CP'R 24.103.
URA requires an appraisal to be done within 60 days of final offer being made for the acquisition of
property. In order to dispose of and sell the properties, the maximum sales price must not exceed the
current market value of the unit as established by an appraisal.
This item clarifies that an appraisal must be done when selling the NSP properties to eligible
beneficiaries; however the sales appraisal for disposition does not have to conform to URA standards, and
it does not have be completed within 60 days of the final offer being made. Only when an appraisal is
being used for acquisition does it have to conform to URA standards and be completed within 60 days of
a final offer being made.
On March 11, 2014, the Board approved an amendment to the NSP3 Developer Agreement with Habitat
to include a Land Bank Plan, as required by HUD to ensure that the properties meet HUD's affordability
guidelines (Agenda item 16D7). A substantially identical amendment to the NSP1 Developer Agreement
is proposed. The Land Bank Plan targets a final completion date for NSP1 of December 2016.
FISCAL IMPACT: This action has no new fiscal impact.
LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority
vote for approval. - JAB
GROWTH MANAGEMENT IMPACT: The Neighborhood Stabilization Program facilitates the goals,
objectives and policies set forth in the Housing Element of the Growth Management Plan.
Packet Page -1188-
6/24/2014 16.D.5.
RECOMMENDATION: That the Board of County Commissioners approves and authorizes the
Chairman to sign the amendment to the NSP Administrative Plan, Amendment 2 to the NSP1 Developer
Agreement with Habitat for Humanity, and Amendment 5 to the NSP3 Developer Agreement with
Habitat for Humanity.
Prepared By: Geoffrey Magon, Grants Coordinator, Housing, Human & Veteran Services
Packet Page -1189-
6/24/2014 16.D.5.
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.16.D.16.D.5.
Item Summary: Recommendation to amend the Neighborhood Stabilization
Administrative Plan and approve Amendment 2 to the Developer Agreement with Habitat for
Humanity of Collier County, Inc. for the Neighborhood Stabilization Program 1 and Amendment
5 to the Developer Agreement with Habitat for Humanity of Collier County, Inc. for the
Neighborhood Stabilitation Program 3 to reflect grant program closeout guidelines and clarify
appraisal requirements.
Meeting Date: 6/24/2014
Prepared By
Name: MagonGeoffrey
Title: Grants Coordinator, Housing, Human & Veteran Services
5/1/2014 12:42:02 PM
Approved By
Name: MaeEsther
Title: Accountant, Housing, Human & Veteran Services
Date: 5/16/2014 12:36:57 PM
Name: KushiEdmond
Title: Accountant, Housing, Human & Veteran Services
Date: 5/21/2014 9:44:08 AM
Name: GrantKimberley
Title: Director - Housing, Human and Veteran S, Housing, Human & Veteran Services
Date: 5/22/2014 12:12:54 PM
Name: GrantKimberley
Title: Director - Housing, Human and Veteran S, Housing, Human & Veteran Services
Date: 5/23/2014 1:32:15 PM
Name: TownsendAmanda
Title: Director - Operations Support, Public Services Division
Date: 6/6/2014 1:38:15 PM
Packet Page -1190-
6/24/2014 16.D.5.
Name: AlonsoHailey
Title: Operations Analyst, Public Services Division
Date: 6/9/2014 9:44:37 AM
Name: RobinsonErica
Title: Accountant, Senior, Grants Management Office
Date: 6/9/2014 12:17:10 PM
Name: CarnellSteve
Title: Administrator - Public Services, Public Services Division
Date: 6/10/2014 8:30:16 AM
Name: BelpedioJennifer
Title: Assistant County Attorney, CAO General Services
Date: 6/11/2014 2:08:07 PM
Name: KlatzkowJeff
Title: County Attorney,
Date: 6/13/2014 10:36:28 AM
Name: FinnEd
Title: Management/Budget Analyst, Senior, Transportation Engineering & Construction Management
Date: 6/13/2014 5:49:43 PM
Name: StanleyTherese
Title: Management/Budget Analyst, Senior, Grants Management Office
Date: 6/16/2014 9:12:40 AM
Name: OchsLeo
Title: County Manager, County Managers Office
Date: 6/16/2014 1:24:25 PM
Packet Page -1191-
6/24/2014 16.D.5.
COLLIER COUNTY
Nle-I& M -
uighborhood
ogram
atabilization Pr
a a M
Administrative Plan
The Administrative Plan is a guide to operating the Collier County
Neighborhood Stabilization Program. The program was established under
Title III of Division B of the Housing and Economic Recovery Act of 2008
(HERA), as amended, with an additional appropriation made through the Wall
Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act). Collier
County was allocated a total of $11,190,920 through the aforementioned Acts.
Department of Housing, Human and Veteran Services
6/25/2013
NSP1 Grant Number B- 08 -UN -12 -0003
NSP3 Grant Number _B- 11 -UN -1° Paa�n CAQ,,"
cket Page -1192-
6/24/2014 16.D.5.
"able of Contents
INTRODUCTION............................................................................................................... ..............................3
DEFINITIONS.................................................................................................................... ..............................3
Abandoned..........................................................................:....................................... ..............................3
BlightedStructure ....................................................................................................... ..............................4
CurrentMarket Appraised Value ........_ ....................................................................... ..............................4
Dateof Notice of Foreclosure ............................................:........................................ ..............................4
Foreclosed................................................................................................................... ..............................4
LandBank ................................._............................,..._................................................. ..._..........................4
Subrecipient................................................................................................................ ..............................5
Use (for the purposes of HERA section 2301(c)(1)) .................................................... ..............................5
Vicinity......................................................................................................................... ..............................5
ACTIVITIES....................................................................................................................... ..............................5
ACQUISITION............................................................................................................... ..............................5
Objective................................................................................................................. ..............................5
Policies..................................................:.................................................................. ...:..........................5
IdentifyingProperties .............................................................................................. ..............................5
REHABILITATION.......................................................................................................... ..................:.....,.....6
Objective................................................................................................................. ..............................6
Policies..................................................................................................................... ..............................6
HOMEOWNERSHIP...................................................................................................... ..............................7
Objective................................................................................................................. ..............................7
Policies..................................................................................................................... ..............................7
DEMOLITION............................................................................................................... ..............................7
Objective......._. ........................................................................................................ ..............................7
Policies..........._ ......................................................................................................... ..............................7
LANDBANK ..................................................:.....................:..................:...................... ..............................8
Objective................................................................................................................. ..............................8
Policies..................................................................................................................... ....................._........8
DISPOSITION..........................:.......................................:............................................ ..........:.................... 8
Objective................................................................................................................. ..............................8
Pol icies..................................................................................................................... ..............................8
PROCEDURES................................................................................................................... ...:..:.......................9
General........................................................................................................................ ..............................9
Purchases and Changes to Purchases ......................................................................... ..............................9
Acquisition...........................................:....................................................................... ..............................9
Rehabilitation................... .. ..................................................................................................................... 10
Homeownership.......:................................................................................................. .............................11
Demolition.................................................................................................................. .............................11
Land Bank 11
Disposition.................................................................................................................. ............................_12
Miscellaneous... ..............................._.......................................................................... .............................12
PROGRAMINCOME ........................................................................................................ .............................12
APPROVAL...................................................................................................................... .............................13
2
Packet Page -1193- CD
6/24/2014 16.D.5.
INTRODUCTION
Title III of Division B of the Housing and Economic Recovery Act of 2008(HERA), as amended,
appropriated $3.92 billion for the redevelopment of abandoned and foreclosed homes and residential
properties. The grant program established is commonly referred to as the Neighborhood Stabilization
Program (NSP). Subsequently, the Wall Street Reform and Consumer Protection Act of 2010 (Dodd -
Frank Act) appropriated an additional $1 billion to the program. NSP1 refers to the $7,306,755
appropriated to Collier County by HERA, while NSP3 refers to the $3,884,165 appropriated by the Dodd -
Frank Act; Collier County's total NSP appropriation was $11,190,920.
There are five (5) eligible uses for NSP1 and NSP3 (collectivelyNSP)1. They are follows:
1. Eligible Use A
a. Establish financing mechanisms for purchase and redevelopment of foreclosed upon
homes and residential properties.
2. Eligible Use B
a. Purchase and rehabilitate homes and residential properties that have been abandoned
or foreclosed upon, in order to sell, rent, or redevelop such homes and properties.
3. Eligible Use C
a. Establish and operate land banks for homes and residential properties that have been
foreclosed upon.
4. Eligible Use D
a. Demolish blighted structures.
5. Eligible Use E
a. Redevelop demolished or vacant properties as housing.
Collier County will focus efforts in areas approved by the US Department of Housing and Urban
Development (HUD). They include Golden Gate Estates, East Naples, Golden Gate City, and Naples
ParkZ.
If any information, policy, or procedure contained herein conflicts with the NSP, the NSP shall take
precedence.
Certain terms used with the NSP are not used in the regular Community Development Block Grant
(CDBG) program, or the terms are used differently. In the interest of clarity of administration, HUD has
defined3 these terms to assist grantees in operating the NSP.
A home or residential property is abandoned if either a) mortgage, tribal leasehold, or tax payments are
at least 90 days delinquent, or b) a code enforcement inspection has determined that the property is not
habitable and the owner has taken no corrective actions within 90 days of notification of the
deficiencies, or c) the property is subject to court- ordered receivership or nuisance abatement related
1 Federal Register Docket Nos. FR- 5255 -N -01; FR- 5447 -N -01.
z The areas are limited to specific census tracts and /or other boundaries within the general areas listed; not all
homes within the target areas are eligible. Specific location information is available in the NSP1 and NSP3 Action
Plans.
3 Federal Register Docket No. FR- 5447 -N -01.
3
Packet Page -1194- Cp
6/24/2014 16.D.5.
to abandonment pursuant to state or local law or otherwise meets a state definition of an abandoned
home or residential property.
Blighted Structure
A structure is blighted when it exhibits objectively determinable signs of deterioration sufficient to
constitute a threat to human health, safety, and public welfare. Furthermore, the grantee shall further
define the definition of a blighted structure and include such definition in their NSP substantial
amendment.
Current Market Appraised Value
The current market appraised value means the value of a foreclosed upon home or residential property
that is established through and appraisal made in conformity with either: 1) the appraisal requirements
of the URA at 49 CFR 24.103, or 2) the Uniform Standards of Professional Appraisal Practice (USPAP), or
3) the appraisal requirements of the Federal Housing Administration (FHA) or a government sponsored
enterprise (GSE); and the appraisal must be completed or updated within 60 days of a final offer made
for the property. The NSP Policy Alert entitled "Guidance on NSP Appraisals: Voluntary Acquisitions
March 15, 2012" requires that acquisition of real property using federal funds is subiect to URA and the
additional NSP requirements that an appraisal be completed or updated within 60 days of a final offer
made for the property by a grantee for the purpose of acquisition Appraisals for the disposition of
Property are not subject to the 60 day requirement for acquisitions The Developer may complete
appraisals beyond the 60 days of final offer as previousiv defined
i l"
The date of notice of foreclosure shall be deemed to be that date on which complete title to a property
is transferred to a successor entity or person as a result of an order of a court or pursuant to provisions
in a mortgage, deed of trust, or security deed. If none of these events occur in the acquisition of a
foreclosed property (e.g. in a short sale), in order to ensure fair and equitable treatment of abona fide
tenant(s) and consistency with the NSP definition of foreclosed, the date of notice of foreclosure shall be
deemed to be the date on which the property is acquired for the NSP - assisted project. NOTE: This
definition does not affect or otherwise alter the definition of "foreclosed ".
A home or residential property has been foreclosed upon if any of the following conditions apply: a) the
property's current delinquency status is at least 60 days delinquent under the Mortgage Bankers of
America delinquency calculation and the owner has been notified; b) the property owner is 90 days or
more delinquent on tax payment; c) under state, local, or tribal law, foreclosure proceedings have been
initiated or completed; or d) foreclosure proceedings have been completed and title has transferred to
an intermediary aggregator or servicer that is not an NSP grantee, contractor, subrecipient, developer,
or end user.
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 purposes of NSP, 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 services or places a lien
on the property for the full cost of the service.
4
Packet Page - 1195 -`�
6/24/2014 16.D.5.
Subrecipieit
Subrecipient shall have the same meaning as at the first sentence of 24 CFR 570.500(C). This includes
any nonprofit organization (including a unit of general local government) that'a state awards funds to.
Use (for the purposes of HERA section 2301(c)(1))
Funds are used when they are obligated by a state, unit of general local government, or any subrecipient
thereof, for a specific NSP activity, for example, for acquisition of a specific property. Funds are
obligated for an activity when orders are placed, contracts are awarded, services are received, and
similar transactions have occurred that require payment by the state, unit of general local government,
or subrecipient during the same or a future period. Note that funds are not obligated for an activity
when subawards (e.g. grants to subrecipients or to units of local government) are made.
Vicinity
For the purposes of NSP3, HUD defines "vicinity" as each neighborhood identified by the NSP3 grantee
as being the areas of greatest need.
ACQUISITION
Objective
Provide permanent residential structures for persons or households whose income is at or below 120
percent of area median income.
1. A current market appraisal will establish the value of properties that will be acquired.
2. The purchase price of all properties acquired shall be discounted at least one (1) percent from
the current market appraisal value.
3. Acquisitions shall be made pursuant to a written Agreement for Sale and Purchase.
4. All residential property types are eligible for acquisitions. Examples include, but are not limited
to, single- family units, multi - family units, and condominium units.
Identifying Properties
Collier County will acquire properties in target areas approved by HUD. The approved areas are Golden
Gate Estates, East Naples, Golden Gate City, and Naples Park, as further geographically defined and
approved by HUD. Specifically, HUD has imposed the following geographic restrictions on the
aforementioned areass:
1. Golden Gate Estates
a. Census tracts
L 0104.14; 0104.13; 0104.12; 0112.02
4 24 CFR 570.201(a) Acquisition; (b) Disposition; (i) Relocation; (n) Direct homeownership assistance; 24 CFR
570.202.
5 Under NSP1, HUD permitted Collier County to define target areas by census tract. Under NSP3, HUD provided a
"mapping tool" to define target areas. The NSP3 mapping tool assigned a "Neighborhood ID ", "latitude and
longitude of corner points ", and "blocks comprising target neighborhood ". This information in contained in the
applicable action plan and is available on colliergov.net /housing.
Packet Page - 1196 -�
6/24/2014 16.D.5.
2. East Naples
a. Census tracts
L 0105.04; 0106.02; 0106.01; 0106.04; 0106.03; 0105.02; 0108.01; 0107.02;
0108.02; 0108.03; 0111.01
b, Neighborhood ID: 3981140
3. Golden Gate City
a. Census tracts
L 0104.06; 0104.08; 0105.03; 0104.11; 0104.09; 0104.10; 0104.07
b. Neighborhood ID: 1108764
4. Naples Park
a. Neighborhood ID: 1827545
When evaluating properties for acquisition, Collier County may seek to acquire properties that possess
the following characteristics: a) require minimum structural rehabilitation, b) ability to convert to energy
efficient housing, c) located in proximity to centers of employment, d) located in close proximity to
public transportation, and e) located in close proximity to other NSP- assisted properties.
As NSP administrator, Housing, Human and Veteran Services, or any partner thereof, will acquire
properties from banks, lenders, intermediary aggregators or servicers, or other entity that has a legal
right to execute documents relating to the acquisition of properties identified by Collier County for
participation in the NSP. All proposed acquisitions must be approved by the Director of Housing, Human
and Veteran Services, or his /her designee, prior to executing a purchase contract.
Objective
Improve residential structures to benefit persons or households, whose income is at or below 120
percent area median income.
Policies
1. Work performed must conform to the current Florida Building Code (FBC) and Environmental
Health and Safety requirements.
2. Completed projects must meet or exceed the HUD Section 8 Minimum Housing Quality
Standards.
3. A Collier County Rehabilitation Specialist will prepare a written bid specification or work plan for
each property, itemizing the work required.
4. Gut rehabilitation? and new construction projects will seek to meet the following standards:
a. Residential buildings up to three (3) stories to be designated to meet the standard for
Energy Star Qualified New Homes;
b. Mid- or high -rise multifamily housing to be designed to meet American Society of
Heating, Refrigeration, Air- Conditioning Engineers (ASHRAE) Standard 90.1 -2004,
Appendix G plus 20 percent (which is the Energy Star standard for multifamily buildings
piloted by the Environmental Protection Agency and the Department of Energy);
5. All rehabilitation projects will seek to meet the following standards:
6 24 CFR 570.201(b) Disposition; (d) Clearance and remediation activities; 24CFR 570.202.
"Gut rehabilitation" is defined as the general replacement of the interior of a building that may or may not
include changes to structural elements such as flooring systems, columns, or load- bearing interior or exterior walls.
6
Packet Page -1197-
6/24/2014 16.D.5.
a. Older obsolete products and appliances (such as windows, doors, lighting, hot water
heaters, furnaces, boilers, air conditioning units, refrigerators, clothes washers and
dishwashers) to be replaced with Energy Star -46 labeled products;
b. Water efficient toilets, showers, and faucets, such as those with the WaterSense label to
be installed;
c. Housing improved to mitigate the impact of disasters (e.g. hurricane, flooding, and fire).
6. Rehabilitated homes are subject to the minimum affordability provisions of the federal HOME
Investment Partnership Program$.
Objective
Provide permanent housing to benefit persons or households whose income is at or below 120 percent
area median income.
Policies
1. Purchasers' household income, adjusted for family size, may not exceed 120 percent area
median income.
2. Applicants must be pre - qualified by Housing, Human and Veteran Services prior to executing a
contract for sale and purchase.
3. The head of household must be a U.S. citizen or permanent resident alien.
4. Applicants must receive and complete eight (8) hours of homebuyer counseling from a HUD -
approved housing counseling agency.
5. Homes or residential properties sold to income - qualified persons or families must be used as the
principal residence.
6. Purchasers will receive subsidy in the form of a principal reduction to increase the affordability
of homes or residential properties assisted through the NSP.
7. Homes or residential properties are subject to the minimum affordability provisions of the
federal HOME Investment Partnership Programlo
DEMOLITI N
Objective
Reduce blight through clearance, demolition, and removal of unsafe homes and residential structures.
Policies
1. Demolition costs may not exceed ten (10) percent of Collier County's NSP allocation12, unless the
Secretary of HUD determines that such use represents an appropriate response to local market
conditions.
2. Homes or residential properties must be blighted, as defined in the Collier County NSP Action
Plan, to be eligible for demolition.
3. Demolished properties may be placed in a land bank for future redevelopment, or may be
transferred to a provider of affordable housing.
$ 24 CFR 92.252(a), (c), (e), and (f), and 92.254.
24 CFR 570.201(a) Acquisition; (b) Disposition; (i) Relocation; (n) Direct homeownership assistance; 24 CFR
570.202.
10 24 CFR 92.252(a), (c), (e), and (f), and 92.254.
1124 CFR 570.201(d) Clearance for blighted structures.
12 HERA sections 2301(c)(4)(C) and (D). yE
7 f
Packet Page -1198-
6/24/2014 16.D.5.
4. Demolished homes or residential properties are subject to the minimum affordability provisions
of the federal HOME Investment Partnership Program13.
LAND BANK14
Objective
Assemble, manage, and dispose of vacant land to stabilize neighborhoods and encourage re -use or
redevelopment of urban property.
Policies
I. Properties may be acquired in the specific, defined geographical areas contained in the Collier
County NSP1 and NSP3 Action Plans.
2. Collier County may purchase properties that have been foreclosed upon and maintain,
assemble, facilitate redevelopment of, market and dispose of land- banked properties.
3. Properties may not be held for more than ten (10) years without obligating the property for a
specific, eligible redevelopment of that property in accordance with NSP requirements.
4. Land- banked properties are subject to the minimum affordability provisions of the federal
HOME Investment Partnership Programis
t
Objective
Convey homes assisted through the NSP to benefit persons or households whose income is at or below
120 percent area median income.
e
1. Homes or residential properties that are purchased, redeveloped, or otherwise sold to an
individual shall be sold in an amount equal to or less than the cost to acquire and redevelop or
rehabilitate such home or property. Note that the maximum sales price for a property is
determined by aggregating all acquisition, rehabilitation, and redevelopment costs (including
related activity delivery costs, which generally may include, among other items, costs related to
the sale of the property)..
2. The net proceeds from the sale of properties assisted through the NSP by the County or its
Subrecipients is considered program income 17 and will be used for additional NSP - eligible
activities.
3. Ten (10) percent of the program income received following disposition will be used for general
administration and planning costs"'.
4. Homes or residential properties conveyed are subject to the minimum affordability provisions of
the federal HOME Investment Partnership Program19.
1324 CFR 92.252(a), (c), (e), and (f), and 92.254.
14 24 CFR 570.201(x) Acquisition and (b) Disposition.
is 24 CFR 92.252(a), (c), (e), and (f), and 92.254.
16 24 CFR 570.201(b) Disposition,
17 Program income is defined at 24 CFR 570.500,
1e 24 CFR 570.205 -.206.
19 24 CFR 92.252(a), (c), (e), and (f), and 92.254.
Packet Page - 1199 - °"
6/24/2014 16.D.5.
,1� ,*
General
1. The Board of County Commissioners approved the NSP1 and NSP3 Action Plans, and shall
approve any proposed substantial amendments to such Action Plans.
2. HUD approved the NSP1 and NSP3 Action Plans, and shall approve any proposed substantial
amendments to such Action Plans.
3. Housing, Human and Veteran Services shall administer the NSP.
4. All County departments, divisions, or sections assisting Housing, Human and Veteran Services
will use the inter- department billing system to receive payment for service(s) rendered.
Pin - chases and Changes to Purchases
1. All purchases under the NSP shall be in accordance with the provisions of the Collier County
Purchasing Policy (hereinafter referred to as "the Purchasing Policy "), the Collier County
Procurement Administration Manual (hereinafter referred to as "the Procedures Manual "), all
applicable NSP grant provisions and, where applicable, all formal contracts pertaining to each
purchase.
2. All purchases subject to the purview of the Purchasing Policy shall be authorized under a
purchase order or a valid purchasing card utilized pursuant to the requirements of the
Purchasing Policy and /or Collier County CMA 5808: Purchasing Card Program Policy and
Procedure.
3. All changes to a formal, bilateral Collier County contract (whether it be under a single project or
a fixed term agreement) shall be processed in accordance with the Purchasing Policy and the
Procedures Manual.
4. All changes to a previously authorized purchase order shall be processed in the form of a
purchase order modification requested by Housing, Human and Veteran. Services from the
Purchasing Department prior to authorizing the changes.
5. A purchase order modification shall be issued to authorize legitimate changes to the original
scope of work identified in the purchase order including, but not limited to, changes in ordering
quantities (products or services), changes in product specifications or service requirements, or
changes due to unforeseen conditions.
6. In the event where a portion of the work solicited under a previously awarded purchase was
deleted prior to award, a purchase order modification shall not be used to add the work back
into scope unless it can be objectively determined from the prices received under the original
competition that the modification would have had no impact on the outcome of the
competition.
7. Purchase order modifications shall not be used to circumvent the competitive procedural
requirements set forth in the Purchasing Policy or Procedures Manual.
8. Real Property Management may approve administratively contract extensions relating to real
property acquisition and transfer.
Acquisition
1. Housing, Human and Veteran Services will identify properties for acquisition through
partnerships with other Collier County departments or divisions, non - profit agencies, or other
housing providers.
2. Housing, Human and Veteran Services will conduct an initial evaluation of proposed
acquisitions.
9
Packet Page -1200-
6/24/2014 16.D.5.
3. Real Property Management, or designee, will prepare a current market appraisal to establish the
value of properties that will be acquired in conformance with the definition herein of "current
market appraised value."
4. The Director of Housing, Human and Veteran Service, or his /her designee, will approve offers to
acquire properties.
5. Acquisition purchase prices shall not exceed One Hundred Fifty Thousand and 00/100 Dollars
($150,000.00) per residential dwelling unit. A single family residential property consist of one
(1) unit, a duplex consists of two (2) units, a triplex consist of three (3) units and a multi- family
property may consist of any number of units greater than one (1) unit.
6. The Board of County Commissioners must specifically approve any acquisition purchase price in
excess of the aforementioned limit.
7. Real Property Management, or designee, will prepare an informational notice to the bank,
lender, intermediary aggregator or servicer, or other entity that has a legal right to execute
documents relating to the identified property informing such entity of Collier County's interest
in acquiring such property on a voluntary basis.
8. Agreements for Sale and Purchase will be prepared and shall contain appropriate contingencies
regarding marketable title, environmental review, and other due diligence, and shall be
approved by the County Attorney's Office for form and legal sufficiency.
9. Agreements for Sale and Purchase will be executed by Collier County and the entity described
above. The 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.
10. The Chairman of the Board of County Commissioners is authorized to execute Agreements for
Sale and Purchase for the acquisition of properties in accordance with the price limits described
herein.
11. Real Property Management, or designee, will conduct all due diligence, including obtaining
evidence of clear title from an approved vendor, and will coordinate with Housing, Human and
Veteran Services to acquire the property.
12. Housing, Human and Veteran Services will perform an environmental review and document
. compliance with applicable grant requirements.
13. Housing, Human and Veteran Services will obligate the funds necessary to acquire the property.
14. Real Property Management, or designee, will coordinate final examinations of title and conduct
or supervise the closing of acquisitions following 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.
1. Housing, Human and Veteran Services' Rehabilitation Specialist will perform a site inspection of
acquired property and prepare a bid specification or work plan in order to solicit competitive
price quotes. All of these solicitations (and any exceptions thereto) shall be conducted in
accordance with the appropriate provisions of the Board's Purchasing Policy and the Procedures
Manual.
2. Purchases and changes to purchases shall be made in conformity with the procedures so named
and detailed above.
3. Housing, Human and Veteran Services will recommend award of these projects to the lowest
qualified and responsive vendor. Housing, Human and Veterans Services will submit a
requisition to and receive a purchase order from the Purchasing Department before directing
the vendor to proceed with any purchase.
4. Collier County will ensure vendors have access to the property.
10
Packet Page -1201-
6/24/2014 16.D.5.
S. Rehabilitation or redevelopment costs shall not exceed Fifty Thousand and 00/100 Dollars
($50,000.00) per residential unit. A single family residential property consists of one (1) unit, a
duplex consists of two (2) units, a triplex consists of three (3) units and a multi - family property
may consist of any number of units greater than one (1) unit.
6. The Board of County Commissioners must specifically approve any rehabilitation costs in excess
of the aforementioned limit.
7. The Rehabilitation Specialist will supervise the rehabilitation or redevelopment until project
completion.
Homeownership
1. Housing, Human and Veteran Services' Housing Outreach Coordinator will pre - qualify persons
interested in purchasing a home assisted through the NSP.
2. The Housing Manager, or his /her designee, will approve all applicants that are determined to be
eligible for participation in the NSP.
3. Pre - qualified applicants will be provided a list of available homes.
4. Applicants will be served on a first - come - first - served basis once eligibility and readiness to
purchase has been established.
5. Applicants will obtain financing that conforms to bank regulators' guidance for non - traditional
mortgages as detailed in the NSP.
6. Purchasers will receive subsidy in the form of a principal reduction to increase the affordability
of homes or residential properties assisted through the NSP. The subsidy amount may not
exceed Fifty Thousand and 00/100 Dollars ($50,000.00).
7. The Board of County Commissioners must specifically approve any homeownership assistance in
excess of the aforementioned limit.
1. Demolition will be contemplated when acquired properties are, a) blighted,' and b) not
economically feasible to rehabilitate.
2. The Rehabilitation Specialist will prepare documentation recommending demolition of the
acquired property.
3. The Director of Housing, Human and Veteran Services, or his /her designee, will approve
demolition of the structure.
4. Demolished properties may be placed in a land bank for future redevelopment, or may be
transferred to a provider of affordable housing.
5. Demolition costs shall not exceed Twenty Five Thousand and 00/100 Dollars ($25,000.00) per
residential unit. A single family residential property consists of one (1) unit, a duplex consists of
two (2) units, a triplex consists of three (3) units and a multi - family property may consist of any
number of units greater than one (1) unit.
6. The Board of County Commissioners must specifically approve any demolition costs in excess of
the aforementioned limit.
1. The Director of Housing, Human and Veteran Services, or his /her designee, will approve all land
bank acquisitions, as well as the transfer of demolished property into the land bank.
2. Land- banked properties will be maintained (e.g. lawn maintenance) to conform with local codes,
rules, and regulations.
3. Within ten (10) years of acquisition, Housing, Human and Veteran Services will obligate the
property for a specific, eligible redevelopment of that property in accordance with NSP
requirements.
f
Packet Page -1202-
6/24/2014 16.D.5.
Disposition
osition
1. Once rehabilitation or redevelopment is complete, properties will be prepared for disposition.
2. Housing, Human and Veteran Services will comply with the minimum disposition standards and
procedures used by Collier County in selling and conveying real property acquired under the
NSP20.
3. The maximum sales price for a property is determined by aggregating all acquisition,
rehabilitation, and redevelopment costs (including related activity delivery costs, which
generally may include, among other items, costs related to the sale of the property).
4. The maximum final sales price will be the Iesser21 of:
a. The aggregate of all acquisition, rehabilitation, and redevelopment costs (including
related activity delivery costs), minus $1,000.00, rounded to the nearest thousand 22; or
b. The appraised value established by a licensed third -party appraiser during the process of
qualifying for first mortgage financing from a private financial institution 23.
5. The program income generated from the disposition shall be recognized by the Board of County
Commissioners and used for additional NSP- eligible activities.
Miscellaneous
1. Collier County successfully met the 18 -month obligation deadline for NSP1.
2. HUD requires Collier County to expend NSP3 funds in a timely manner. Specifically, the
following expenditure deadlines were imposed as a condition of award:
a. Expend 50 percent of NSP3 funding by March 11, 2013
b. Expend 100 percent of NSP3 funding by March 11, 2014
3. Pursuant to the rules and regulations of the NSP, no less than 25 percent of the initial Collier
County award must be used to benefit households earning not greater than 50 percent area
median income.
4. The NSP1 grant number is B- 08 -UN -12 -003 and the allocation was $7,306,755.
5. The NSP3 grant number is B- 11 -UN -12 -003 and the allocation was $3,884,165.
6. The NSP Catalog of Federal Domestic Assistance (CFDA) number is 14.218.
7. The Collier County Data Universal Number System (DUNS) identification number is 076997790.
Revenue received by Collier County 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 25
implementing substantive revisions to the October 6, 2008 notice, primarily as a result of changes to the
20 Collier County Ordinance No. 2009 -63.
21 The final sales price procedure is established to ensure that Collier County does not sell a property for an
amount greater than the aggregate NSP investment, thus exposing the County to a potential audit finding.
22 For example, the aggregate NSP investment in a project is determined to be $147,518.25. The final sales price
would be calculated as follows: aggregate investment ($147,518.25) minus voluntary reduction ($1,000.00) equals
$146,518.25, rounded down to the nearest thousand equals final sales price of $146,000.00.
23 When qualifying for first mortgage financing from a private financial institution, such institution will determine
the maximum financing available based on the appraised value or purchase price, whichever is less. For example,
if Collier County invested $147,518.25 in a project that appraised for only $130,000.00, the maximum first
mortgage financing would be based on the appraisal value. Although underwriting guidelines vary from lender to
lender, it is generally true that the maximum loan -to -value available to purchasers will range from 80 percent of
appraised value to 97 percent of appraised value.
24 24 CFR 570.500.
25 docket No. FR- 5255 -N -02.
12 —
Packet Page -1203- s -
6/24/2014 16.D.5.
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, remained 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 Treasury. However, the program income requirements of the CDBG program are still
applicable to income directly generated from the use of NSP funds and received by grantees or
subrecipients.
Program income received may be retained by Collier County and treated as additional NSP 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 allows Housing, Human and Veteran Services to use ten (10) percent of the NSP grant and ten (10)
percent of program income earned for general administration and planning activities.
This NSP Administrative Plan replaces the existing Plan approved by the Board of County Commissioners
on March 24, 2009, amended October 27, 2009, amended June 28, 2011, further amended June 25,
2013 and shall be used in the administration of NSP1 and NSP3.
ATTEST: BOARD OF COUNTY COMMISSIONERS
DWIGHT E. BROCK, CLERK COLLIER COUNTY, FLORIDA
BY: BY:
DEPUTY CLERK Tom Henning
CHAIRMAN
APPROVED AS TO FORM
AND LEGALITY
BY: 11- . -
JE IFER BELPEDI @J
ASSISTANT COUNTY ATTORNEY
13
Cq
Packet Page -1204-
6/24/2014 16.D.5.
NEIGHBORHOOD STABILIZATION PROGRAM 1
AMENDMENT NO.2 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 _ day of , 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 ").
RE: NEIGHBORHOOD STABILIZATION PROGRAM B- 08 -UN -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 Self Through are deleted; Words Underlined are added:
(Dollar amounts have original underlines)
RECITALS:
WHEREAS, on April 24, 2012, the parties entered into Neighborhood Stabilization
Program 1, CFD No. 12.218, Developer Agreement (Agreement); and
WHEREAS, on February 12, 2013, the parties executed Amendment 1 to the
Neighborhood Stabilization Program 1, CFD No. 12.218 Developer Agreement; and
WHEREAS, Exhibit C is being added to the Developer Agreement to establish a Land
Bank Plan for the NSP1 Developer Agreement in order to enable the NSP1 program to closeout
in compliance with HUD NSP Closeout Guidelines; and
WHEREAS, the Developer Agreement is being amended to include modifications in
order to clarify appraisal language and associated requirements.
NOW THEREFORE, in consideration of the foregoing Recitals, and other good and
valuable consideration, the Parties agree to add Exhibit C to the Agreement as follows:
I. Definitions
2. "Appraisal" means an appraisal which meets the criteria specified in the Uniform
Relocation Assistance and Real Property Acquisition Policies Act ( "URA "), as further
defined in 49 CFR 24.103. The NSP Policy Alert entitled "Guidance on NSP Appraisals:
1jPage
Packet Page -1205-
6/24/2014 16.D.5.
Voluntary Acquisitions March 15 2012" requires that acquisition of real property using,
federal funds is subiect to URA and the additional NSP requirements that an appraisal be
completed or updated within 60 days of a final offer made for the property by a grantee
for the purpose of acquisition Appraisals for the disposition of property are not subiect
to the 60 day requirement for acquisitions The Developer may complete appraisals
beyond the 60 days of final offer as previously defined.
5. "Current market appraised value" means the value of a property that is established
through an appraisal made in conformity with either: 1) the appraisal requirement of the
URA at 49 CFR 24.103, or 2) the Uniform Standards of Professional Appraisal Practice
( "USPAP "), or 3) the appraisal requirements of the Federal Housing Administration
( "FHA ") or a government sponsored enterprise ( "GSE "); and the appraisal must be
completed or updated within 60 days of final offer made for the property by a grantee,
subrecipient, developer, or individual buye . The 60 day requirement does not apply to
the disposition of a property to a final beneficiary. However, if the anticipated value of
the proposed acquisition is estimated at $25,000 or less, the current market appraised
value of the property may be established by a valuation of the property that is based on a
review of available data and is made by a person the grantee determines is qualified to
make the valuation.
III. Project Requirements
The DEVELOPER agrees to comply with all requirements of the NSP -1 as stated in the NSP
Notice and CDBG regulations, including but not limited to the following:
A. NSP -1 Eligible Use, CDBG National Objective and Eligible Activities — The DEVELOPER
will ensure and document that its NSP -1 activities meet LMMI national objective, eligible
use, allowable cost, and eligible activity requirements of the NSP Notices and CDBG
regulations. The DEVELOPER will ensure that any Land Banking activities will follow the
Land Bank Plan as described in "Exhibit C."
(Signature Page to Follow)
2�Page G�'
Packet Page -1206-
6/24/2014 16.D.5.
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: BOARD OF COUNTY COMMISSIONERS
Dwight E. Brock, Clerk. of Courts COLLIER COUNTY, FLORIDA
By:
Dated:
(SEAL)
First Witness
TType /print witness name
Second Witness
By:
Tom Henning, Chairman.
Habitat for Humanity of Collier County, Inc.
A Florida not - for- profit corporation
By: _
Print.
Title:
Approved as to form and legality:
TType /print witness nameT
Jennifer A. Belpedio
Assistant County Attorney
3jPage
Packet Page -1207- @
EXHIBIT A. Project Description
M
F. MAXIMUM SALES PRICE
6/24/2014 16.D.5.
If an abandoned or foreclosed -upon home or residential property is purchased, redeveloped,
or otherwise sold to an individual as a primary residence, then such sale shall be in amount
equal to or less than the cost to acquire and redevelop or rehabilitate such property up to a
decent, safe and habitable condition. The maximum sales price for a property is determined
by aggregating all costs of acquisition, rehabilitation, and redevelopment (including released
activity delivery costs, which generally include, among other things, costs related to the sale
of the property). Note that the maximum sales price may not exceed the current market
value of the unit as established by an appraisal. Note that for disposition neither the County
nor the Developer are required to perform the appraisal in conformance with the NSP Policy
Alert entitled "Guidance on NSP Appraisals: Voluntary Acquisitions March 15, 2012 ". The
associated guidance is required only when acquiring real property with federal funds. While
the NSP1 program does not require an appraisal be done when disposing of property, the
County will require the Developer to perform an appraisal to ensure that the market ,price is
appropriate, however this disposition appraisal is not subject to the NSP Policy Alert
entitled "Guidance on NSP Appraisals: Voluntary Acquisitions ", and may be completed
beyond the time period of 60 days.
Remainder of Page Left Intentionally Blank
41Pagc
Packet Page -1208- C7
6/24/2014 16.D.5.
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........................................................................................................................ ............................... 6
CurrentStatus .................................................................................................................. ..............................6
Summary of Recommendations ...< ............................................. ............................... 7
Land Bank Plan Guidelines ............. : ...................................... .................. 7
Goalof the Land Bank ..... .............................................................................................. .........._.................... 7
NationalObjectives ............................................ ............................... 8
LandBank Oversight ..................._............................ ............................... 8
Ten Year Limitation on NSP Land Bank Properties .................... ....... ........................... I .............................. 8
SideLot Disposition ........................................................ ............_................................... ...,........._................ 9
Future acquisition of properties for the Land Bank ........................................ ............................... 9
Responsibilities and Requirements ..................................... ............................... 9
APPENDIXl .................................................................................................................. .............................10
APPENDIX2 ............................................ ............................... .......10
APPENDIX3 ................................................................................................................. .............................10
51Pa�e
Packet Page -1209-
6/24/2014 16.D.5.
Overview
This report presents the results of technical assistance provided to Collier County in the
consideration of forming an NSP Land Bank in con - junction 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 NSP1 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 NSP program. The inventories of properties proposed for the NSP Land Bank
are included in Appendix 1.
Collier County's NSPI Substantial Amendment provides 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 I1I) 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
or the purpose of stabilizing neighborhoods and encouraging re -use or redevelopment of
urban property. For the purposes of NSP, a land bank will operate in a specific defined
ge2gLophic 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
re ug latory 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 vet 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
6(P age i
Packet Page -1210- `
6/24/2014 16.D.5.
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 NSP1 Substantial Amendment
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 NSP1 properties and defines the specific end use
for their disposition and the national obiective 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 NSP1 Substantial Amendment as it included
Eligible Use C, Land Bank. The Develo ep r Agreements between Habitat and the County
authorize land banking activities. There are nine NSPI parcels- all single family residential
lots. Habitat intends to complete the NSPI homes by the end of 2016 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 NSP1
program requirements as part of the agreement established between Collier Co_ unto 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
71I'age ��
Packet Page -1211-
6/24/2014 16.D.5.
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 Acnuisition 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 vet met a national objective are placed in a Land Bank the grantee may
close out their 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 NSP1 or NSP3 grant. Any properties that have not met a national objective will
immediately be used for CDBG purposes. Since there are no deed reversion clauses this should
be included in the agreement with Habitat- the lots will revert in ten Years if they have not met a
national objective.
f
Packet Page -1212- 81Page � -`
6/24/2014 16.D.5.
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 fiords expended will serve households with incomes at or
below 50% of the area median income per Develo ep r Agreements
5. NSPl funds are used for acquisition only. 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 $5,500 per unit developer fee for NSPI homes
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.
91Page CCA
Packet Page -1213-
APPENDIX 1
Land Bank Inventory
6/24/2014 16.D.5.
Parcel
NSP Program
Location /Address
Status
End Use and
Disposition
ID#
National Obiective
Date
NSPI
Hallendale Lot 58
Vacant
Single Family
12/31/2016
lot
Ownership (LMMH)
NSPI
Hallendale Lot 59
Vacant
Single Family
12/31/2016
lot
Ownership (LMMH)
NSPI
Hallendale Lot 63
Vacant
Single Family
12/31/2016
lot
Ownership (LMMH)
NSPI
2183 4151 S.W.
Vacant
Single Family
12/31/2016
lot
Ownership (LMMH)
NSPI
5418 23r Court
Vacant
Single Family
12/31/2016
S.W.
lot
Ownership (LMMH)
NSPI
2742 Storter Ave
Vacant
Single Family
12/31/2016
lot
Ownership (LMMH)
NSPI
Lot 20 Dominion
Vacant
Single Family
12/31/2016
Dr,
Iot
Ownership LMMH
NSPI
2883 62° Ave N.E.
Vacant
Single Family
12/31/2016
lot
Ownership (LMMH)
NSP1
4561 Dominion Dr.
Vacant
Single Family
12/31/2016
lot
Ownership (LMMH)
APPENDIX 2
Land Banking Authority
Summary of Collier County NSP Plans and Developer Agreements with Habitat for
Humanity
NSPI Substantial Amendment, Collier County
The NSPI Substantial Amendment of 2009 includes a strategy for the formation and operation of
a land bank. The plan also includes a strategy for the demolition of land bank. Initial funding
levels for the land bank and demolition activities were $320,000 for acquisition and $12,750 for
demolition.
NSPI Developer Agreement, Collier County and Habitat for Humanity of Collier County
The initial agreement executed 4 -24 -12 provided $231,000 to Habitat for developer fees for an
estimated 42 homes. The County would purchase the homes and deed them to Habitat. Habitat
was to perform the rehabilitation or reconstruction and sell the units to eligible buyers at their
own expense and receive a developer fee of $5,500 per unit.
The Agreement allows Habitat to perform NSP Eligible Activities A -E, which includes land
bank activities. Other provisions of the Agreement are as follows:
lO1Page
Packet Page -1214- �{
6/24/2014 16.D.5.
- 25% of the total funding received would be allocated to meeting the low income set -aside
- The developer fee of $5,500 is payable upon sale.
- Habitat may retain all project proceeds
- Long term affordability is the minimum provided by the NSP statute
- The amendment of 2 -12 -13 reduced the number of units from 42 to 36 along with the
contract amount from $231,000 to $198,000
APPENDIX 3
NSP Statutory and Implementing Citations
NSP Land Bank Background Information (Unified NSP Notice- 75 FR 64322)
NSPDefrnition 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 (CMG)
The NSP funds used for land banking must correlate with an eligible activity under 24 CM
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.
I I I P a g e
Packet Page -1215- `'�
6/24/2014 16.D.5.
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 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 Ohiectives
Each NSP activitv must meet a National Obiective. NSP national obiectives include housin
activities (LMMH), area benefit activities (LMMA) and limited clientele activities (LMMC).
The Closeout Notice added one more- the jobs national objective (LMMJ). Since all of Collier
Countv'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 I, 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;
Packet Page -1216- 12 P a g e (C f
6/24/2014 16.D.5.
(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 NSPprom m•
(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
131Page
Packet Page -1217-
6/24/2014 16.D.5.
NEIGHBORHOOD STABILIZATION PROGRAM 3
AMENDMENT NO.5 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 _ day of , 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- 11 UN- 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 Str-ael Through are deleted; Words Underlined are added:
(Dollar amounts have original underlines)
WITNESSETH:
Definitions
2. "Appraisal" means an appraisal which meets the criteria specified in the Uniform
Relocation Assistance and Real Property Acquisition Policies Act ( "URA "), as
further defined in 49 CFR 24.103. The NSF Policy Alert entitled "Guidance on
NSP Appraisals: Voluntary Acquisitions March 15. 2012" requires that
acquisition of real property using federal funds is subject to URA and the
additional NSP requirements that an appraisal be completed or updated within 60
days of a final offer made for the property by a grantee for the purpose of
acquisition. Appraisals for the disposition of property are not subject to the 60
day requirement for acquisitions. The Developer may complete appraisals
beyond the 60 days of final offer as previously defined.
5. "Current market appraised value" means the value of a property that is established .
through an appraisal made in conformity with either: 1) the appraisal requirement
of the URA at 49 CFR 24.103, or 2) the Uniform Standards of Professional
Appraisal Practice ( "USPAP "), or 3) the appraisal requirements of the Federal
Housing Administration ( "FHA ") or a government sponsored enterprise ( "GSE ");
1 I Page
Packet Page -1218- C.n,1/
6/24/2014 16.D.5.
and the appraisal must be completed or updated within 60 days of final offer made
for the property by a grantee, subreci lent developer, or indiNidu l bu
ef. The 60
day requirement does not apply to the disposition of a property to a final
beneficiary. However, if the anticipated value of the proposed acquisition is
estimated at $25,000 or less, the current market appraised value of the property
may be established by a valuation of the property that is based on. a review of
available data and is made by a person. the grantee determines is qualified to make
the valuation.
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: BOARD OF COUNTY COMMISSIONERS
Dwight E. Brock, Clerk of Courts COLLIER COUNTY, FLORIDA
By: By:
Dated: (SEAL) Tom Henning, Chairman.
Habitat for Humanity of Collier County, Inc.
First Witness A Florida not - for - profit corporation
By:
TType /print witness nameT Print:
Title:
Second Witness
Approved as to form and legality:
TType /print witness nameT
Jennifer A. Belpedio
Assistant County Attorney
21Pa9e_ CPIO
Packet Page -1219-
EXHIBIT A. Project Description
x
F. MAXIMUM SALES PRICE
6/24/2014 16.D.5.
If an abandoned or foreclosed -upon home or residential property is purchased,
redeveloped, or otherwise sold to an individual as a primary residence, then such
sale shall be in amount equal to or less than the cost to acquire and redevelop or
rehabilitate such property up to a decent, safe and habitable condition. The
maximum sales price for a property is determined by aggregating all costs of
acquisition, rehabilitation, and redevelopment (including released activity delivery
costs, which generally include, among other things, costs related to the sale of the
property). Note that the maximum sales price may not exceed the current market
value of the unit as established by an appraisal. Note that for disposition neither the
County nor the Developer are required to perform the appraisal in conformance with
the NSP Policy Alert entitled "Guidance on NSP Appraisals: Voluntary Acquisitions
March 15, 2012 ". The associated guidance is required only when acquiring real
property with federal funds. While the NSP1 program does not require an appraisal
be done when disposing of property. the County will require the Developer to
perform an appraisal to ensure that the market price is appropriate, however this
disposition appraisal is not subject to the NSP Policy Alert entitled "Guidance on
NSP Appraisals: Voluntary Acquisitions and may be completed beyond the time
period of 60 dates.
3 1 P a g e CAS.%
Packet Page -1220-