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Agenda 10/14/2014 Item # 16D 7 10/14/2014 16.D.7. EXECUTIVE SUMMARY Recommendation to approve an after-the-fact waiver of all tenant rental late fees to the Neighborhood Stabilization Program, in an estimated approximate amount of $2,000 for the recently conveyed Gilchrist Apartments. OBJECTIVE: To have the Board waive uncollected tenant rental late fees for the Gilchrist Apartments. CONSIDERATIONS: The Gilchrist Apartments consist of six (6) multi-family buildings each containing two (2)units, for a total of twelve (12)housing units which were acquired with Neighborhood Stabilization (NSP) funds during September 2010. At that time, the buildings were managed by Colonial Square Realty (CSR). CSR processed annual leases with tenants until 2011. CSR managed the Gilchrist Apartments until August 2012 at which time the County's Facilities Management Department began to collect rents and maintain the buildings. CSR turned over the Security Deposits to the County for these units. From August— October 2012, the County Property Management Specialist went onsite to each occupied unit on or around the first business day of each month to collect rent. As of November 2012,the Property Management Specialist began hand-delivering monthly notices or invoices for the rent payments on the first business day of each month. These notices indicated the day that the rent was due; which would normally allow 5 to 7 days for the tenant to deliver or mail their payment. This process generally took into account weekends and holidays when County offices were closed. A spreadsheet is attached to provide rental collection information for the period from August 2012 until August 2014. On July 9, 2014, (Item 16D9), the Board awarded a Developer Agreement to convey the property to NR Contractors, Inc. The Housing, Human and Veteran Services Department (HHVS) submitted a check request package to the Finance Department prior to closing for the $2,000 in Security Deposits that were held by the County to transfer them to the Developer. Finance then requested information regarding the outstanding late fees. When the tenants continued to occupy the apartments past the initial term of the lease, the terms of the holdover leases, including the provision for late fees, should have continued. Until this time, HHVS and Real Property Management were dealing with these units as month-to-month tenants at will and did not collect late fees. The attached spreadsheet estimates the potential late fees of approximately $2,000. All of the rental payments between August 2012 and August 2014 have been deposited by the County, totaling $124,450. Finance requested a legal opinion as to whether the potential late fees could be deducted from Security Deposits. The County Attorney's Office opined that late fees could not be deducted from these Security Deposits as there was no specific lease term to rely upon. The closing for the conveyance of the real property to NR Contractors, Inc.took place Friday August 29, 2014. The County delivered a check for the security deposits and other closing documents. The Statutory Deed was recorded September 2, 2014 in Official Records Book 5072, page 2166. FISCAL IMPACT: No general funds are associated with this project. NSP administration is funded through the grant program's established administration cap. It was discussed between HHVS and the HUD Miami field office that this issue would generally be treated as a local matter as there is not a specific NSP programmatic requirement that HHVS pursue the late fees from the tenants. LEGAL CONSIDERATIONS: Legal action to collect the late fees is not recommended since: 1) the uncollected fees are relatively nominal for each tenant and HUD is not requiring it. and 2) the Security Packet Page -1195- 10/14/2014 16.D.7. Deposit Addendum to the Leases cannot be located. Accordingly, this item is approved for form and legality and requires a majority vote for Board action. -JAB GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this action. RECOMMENDATIONS: That the Board of Collier County Commissioners waives any and all tenant rental late fees due on the Gilchrist Apartments. Prepared by: Sue Jim Zimmerman, Sr. Property Acquisition Specialist, Real Property Management/Facilities Management Dept.; and Geoffrey Magon, Grant Coordinator, Housing, Human and Veteran Services Attachment: Spreadsheet indicating rental payments and potential late fees. Packet Page -1196- 10/14/2014 16.D.7. COLLIER COUNTY Board of County Commissioners Item Number: 16.16.0.16.0.7. Item Summary: Recommendation to approve an after-the-fact waiver of tenant rental late fees to the Neighborhood Stabilization Program, in an approximate amount of$2,000 for the recently conveyed Gilchrist Apartments. Meeting Date: 9/23/2014 Prepared By Name: ZimmermanSue Title: Property Acquisition Specialist, Senior,Facilities Management 9/8/2014 12:02:51 PM Submitted by Title: Property Acquisition Specialist, Senior,Facilities Management Name: ZimmermanSue 9/8/2014 12:02:52 PM Approved By Name: GrantKimberley Title: Director-Housing, Human and Veteran S,Housing, Human &Veteran Services Date: 9/8/2014 12:43:15 PM Name: CampSkip Title: Director-Facilities Management, Facilities Management Date: 9/8/2014 1:38:23 PM Name: SonntagKristi Title: Manager-Federal/State Grants Operation,Housing, Human &Veteran Services Date: 9/9/2014 10:48:07 AM Name: MottToni Title: Manager-Property Acquisition&Const M,Facilities Management Date: 9/9/2014 4:05:31 PM Packet Page -1197- 10/14/2014 16.D.7. Name: RobinsonErica Title: Accountant, Senior, Grants Management Office Date: 9/10/2014 11:04:46 AM Name: BelpedioJennifer Title: Assistant County Attorney, CAO General Services Date: 9/10/2014 4:06:13 PM Name: CarnellSteve Title: Administrator-Public Services, Public Services Division Date: 9/12/2014 11:54:33 AM Name: BelpedioJennifer Title: Assistant County Attorney, CAO General Services Date: 9/12/2014 12:02:33 PM Name: KlatzkowJeff Title: County Attorney, Date: 9/12/2014 4:48:53 PM Name: OchsLeo Title: County Manager, County Managers Office Date: 9/17/2014 9:27:59 AM Packet Page -1198- 10/14/2014 16.D.7. t D a • -° 0 2 O 00 O O ul ti W N 0 in c r _ w Z 0 v O c w CO 5 O r Y a r y C r N 3 Z C a Y C C C C C a 0) v CO C K o C K C K C K a• a[ Y Y Y Y Y Y .�[ L O y W T CO > C 2.2 2 2 2 2 2 23 2 2 2 g o N N J 7 a 0) J 2 J J r a a a a n o. a 0 0 0 0 0 o 0 0 N 0)V1 V)N oo N W * 2 0 ° ^ '-- ^ O 0 0 0 O • ^_S .E8 v M V� il} Q1 - Z U S 4 v▪ C w O LI- LY N Z• = 0 0 0 0 0 0 0 0 0 Z • \\ Q O Q 01 C N 01 O 01 o 2 0 0 0 0 0 0 '0 0 0 0 0 W W O O o 0 0 0 u1 0 0 0 0 r O N N N N I N N N N N N W gc t.1 = tft U � r = Z L L L L L L L L L L - g z W 2 2 2 2 2 .a 2 2 2 o r 0 0 0 0 0 O 0 0 0 Qazg r'o o c r0 > y >0 a a a a a 'o ,. -o -oo v -o O U L L .c L L L L L 61 iD Y. 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