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Agenda 02/12/2013 Item #16D 3111� 2/12/2013 16.D.3. EXECUTIVE SUMMARY Recommendation to approve an amendment to the Developer Agreements with Habitat for Humanity of Collier County, Inc. for the Neighborhood Stabilization Program 1 (NSP1) and the Neighborhood Stabilization Program 3; and approve an amendment to the NSP3 Action Plan to update and clarify target area census tracts, demolition and landbanking activities OBJECTIVE: Update the NSPI and NSP3 Developer agreements and NSP3 Action Plan to reflect current program direction and timely implement the Board approved NSP Exit Strategy. CONSIDERATIONS: On December 13, 2011, Agenda Item No. 10A, the Board of County Commissioners ( "Board ") approved an exit strategy and associated implementation action with the purpose of extricating the County from daily operations of the Neighborhood Stabilization Program. On February 28, 2012, Agenda Item 16.D.6, and the County approved the NSP3 Action Plan to the Department of Housing and Urban Development (HUD). On April 24, 2012, Agenda Item No. 11 B., the Board approved two developer agreements with Habitat for Humanity for the NSPI and NSP3 programs. This item presents modifications to the NSP3 Action Plan and two Habitat developer agreements. NSP3 Action Plan The modifications proposed to the NSP3 Action Plan make it consistent with Board approved modifications to the NSP3 Developer Agreement (January 8, 2013, Agenda Item 16D4). The modifications are necessary because population shifts during the most recent decennial census caused the U.S. Census Bureau to split the census tract designated as 104.09 into two completely new census tracts, 104.19 and 104.20. This split dissolved the original census tract of 104.09, thus removing it completely and replacing it with the new designations. The boundaries of the NSP3 target areas will not change and no additional target areas are being added by this modification. Also, the recently published NSP closeout guidelines allow for demolition to be listed as a separate activity. The Action Plan is proposed to be modified to add demolition as an eligible activity. Finally, there are; modifications to goals (property counts by category, for example) and they are proposed in order to provide the .County with flexibility to meet the compliance and expenditure requirements of the program. NSP 1 Developer Agreement The NSP 1 Developer Agreement requires Collier County to convey forty-two properties to Habitat in order to extricate itself from the NSPI program. The proposed NSP 1 Developer Agreement reduces the properties to be conveyed to Habitat to thirty-six by removing six rental properties located on Gilchrist Street from the agreement. The Gilchrist rental properties are recommended to be removed from the NSP 1 Developer Agreement in order to eventually transfer them to a property owner /developer to be operated as affordable rental housing. The Gilchrist rental properties were originally purchased to meet the NSPI program requirement that twenty -five percent (25 %) of the grant funds be used to benefit very-low income individuals. Transferring the Gilchrist rental properties to Habitat would result in them being replaced by single family housing requiring expensive relocation of the existing tenants, per HUD regulations. Staff consideration of these factors which has occurred since the agreement was put in place, in concert with guidance from our NSP technical assistance provider, leads staff to conclude that the better approach is to remove the six units from the developer agreement so that they may continue to be occupied as rentals while staff develops a plan for disposition. Packet Page -1786- 2/12/2013 16.D.3. NSP 3 Developer Agreement The NSP 3 Developer Agreement does not allow for land banking activities. Land Banking Activities was originally intended to be included in the NSP 3 Developer Agreement presented to the Board but was inadvertently left out. The proposed NSP 3 Developer Agreement expressly allows land banking activities. This modification will not result in a line item shift or impact the total #mding Habitat has been designated to receive but rather will allow for land banking should it be necessary to expend all funds allocated under this program. "Land Bank" is defined in the Board approved NSP 3 Developer Agreement as: "Land Bank" means a governmental or nongovernmental non - profit 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 NSP -3, 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 rehabilitation of, market, and dispose of the land - banked properties...." As modified in the associated NSP3 Action Plan, per the recently published N P3 closeout guidelines HUD allows demolition as an eligible activity. This amendment will allow r Habitat to engage in demolition with prior written consent of the County. As noted above, and as background, the NSP 3 Developer Agreement was previously modified by the Board to accommodate for the census tract references. This is the second proposed amendment. FISCAL IMPACT: Funding for the NSP I. agreement with Habitat for Huroanity will be reduced by $33,000 (the amount of the developer fees for the Gilchrist properties). Funds are located in Human Services Grant Fund 121, Project 33050. There is no fiscal impala associated with the modifications to the NSP3 agreement or Action Plan. LEGAL CONSIDERATIONS: This item is legally sufficient and requires majority vote for Board action. - JBW GROWTH MANAGEMENT IMPACT: The Neighborhood Stabilization Progsam facilitates the goals, objectives and policies set forth in the Housing Element of the Growth Management Plan. RECOMMENDATION: To approve each document and authorize the Chairwoman to: • Sign an amendment to the NSP1 Developer Agreement o Remove six Gilchrist rental properties no longer transferring to Habitat • Sign an amendment to the NSP3 Developer Agreement o Add Land Banking as an eligible activity under the Developer #greement to mirror the NSP3 Action Plan and accordingly adjust goals within eligible ac#vities • Direct staff to revise the NSP3 Action Plan • Update eligible census tracts • Clarify goals within eligible activities Prepared By: Geoffrey Magon, Grants Coordinator, Housing, Human & Veteran rvices Packet Page -1787- 2/12/2013 16.D.3. COLLIER COUNTY Board of County Commissioners Item Number: 16.16.D.16.D.3. Item Summary: Recommendation to approve an amendment to the Developer Agreements with Habitat for Humanity of Collier County, Inc. for the Neighborhood Stabilization Program 1(NSP1) and the Neighborhood Stabilization Program 3; and approve an amendment to the NSP3 Action Plan to update and clarify target area census tracts, demolition and landbanking activities. Meeting Date: 2/12/2013 Prepared By Name: MagonGeoffrey Title: Grants Coordinator 1/4/2013 5:53:10 PM Submitted by Title: Grants Coordinator Name: MagonGeoffrey 1/4/2013 5:53:11 PM Approved By Name: GrantKimberley Title: Interim Director, HHVS Date: 1/4/2013 6:11:47 PM Name: LarsenKathleen Date: 1/7/2013 9:35:04 AM Name: AlonsoHailey Title: Operations Analyst, Public Service Division Date: 1/7/2013 11:39:07 AM Name: AckermanMaria Title: Senior Accountant, Grants Date: 1/7/2013 12:04:42 PM Packet Page -1788- Name: CarnellSteve Title: Director - Purchasing /General Services,Purchasing Date: 1/25/2013 9:03:01 AM Name: WhiteJennifer Title: Assistant County Attorney,County Attorney Date: 1/29/2013 10:20:34 AM Name: FinnEd Title: Senior Budget Analyst, OMB Date: 1/29/2013 7:15:04 PM Name: KlatzkowJeff Title: County Attorney Date: 1/30/2013 9:26:39 AM Name: OchsLeo Title: County Manager Date: 1/31/2013 2:11:58 PM Packet Page -1789- 2/12/2013 16.D.3. 2/12/2013 16.D.3. AMENDMENT NO.1 TO AGREEMENT FOR THE NEIGHBORHOOD STABILIZATION PROGRAM 1 CFDA: 14.218 DEVELOPER AGREEMENT BETWEEN COLLIER COUNTY AND HABITAT FOR HUMANITY OF COLLIER COUNTY, INC. (NSP -1) THIS AMENDMENT is made and entered into on this day of January, 2013, by and between Collier County, a political subdivision of the ' State of Florida, having its principal office at 3299 Tamiami Trail East, Naples, Florida 34112 (hereinafter called the "GRANTEE "), and Habitat for Humanity of Collier County, Inc., a private not - for - profit corporation, existing under the laws of the State of Florida, having its principal office at 11145 Tamiami Trail East, Naples, Florida 34113 (hereinafter called the "DEVELOPER ") to undertake the Neighborhood Stabilization Program ( "NSP -1 ") as approved by the Collier County Board of County Commissioners. RECITALS: WHEREAS, on April 24, 2012, the parties entered into Neighborhood Stabilization Program 1, CFD No. 12.218, Developer Agreement (Agreement); and WHEREAS, Exhibit A -1 of the Agreement is a site- specific list of properties to be transferred from Grantee to Developer; and WHEREAS, the Parties desire to remove certain properties from Exhibit A -1 of the Agreement so that those properties may be transferred to a third party or parties, as allowed under NSP -1. WHEREAS, Exhibit B of the Agreement is a budget for properties to be transferred from Grantee to Developer; and WHEREAS, as a result of a decrease in the number of properties to be conveyed to Developer, the corresponding budget has been reduced; and NOW THEREFORE, in consideration of the foregoing Recitals, and other good and valuable consideration, the Parties agree to modify Exhibit A -1 of the Agreement as follows: Packet Page -1790- 2/12/2013 16.D.3. II. Terms and Conditions of the Funding A. Funding Amount - NSP -1 Funds in the amount of One Hundred Ninety - Eight Thousand 00/100 Dollars (198,000) Dell rs ($291,000` are obligated for use in compliance with this agreement, as reflected in the budget in Exhibit B. EXHIBIT A -1. Legal Descriptions The following site - specific list of properties is associated with this Agreement and ownership to such will be transferred from Grantee to Developer following all standard Collier County closing procedures. 1. Lot 52, Block B, Whispering Pines, a Subdivision of Lots 48 and 49 in Naples Grove and Truck Company's Little Farms #2, according to the Plat Thereof, as Recorded in Plat Book 4, Page 17, of the Public Records of Collier County, Florida. Parcel No. 81732120002 (2842 Barrett Avenue, Naples, FL 34112) 2. Lot 20, in Block 9, of Naples Manor Addition, according to the Plat thereof, as recorded in Plat Book 3, at Pages 67 and 68, of the Public Records of Collier County, Florida. Parcel No. 62097920005 (5378 Carlton Street, Naples, FL 34113) • - A0001", 1MYRN '- r - �' •ITATA • i N Packet Page -1791- 1MYRN '- •- - �' M ftrMft - i KFATUNWAM _���_ Packet Page -1791- 1MYRN '- •- �' M ftrMft - i KFATUNWAM _���_ Packet Page -1791- 1MYRN i KFATUNWAM Packet Page -1791- 2/12/2013 16.D.3. 9. Lot 19, Block A, Pine -View Villas, according to the Plat thereof, recorded in Plat Book 9, Page 49, of the Public Records of Collier County, Florida. Parcel No. 67490760003 (4308 Rose Avenue, Naples, FL 34112) 10. Lot 3, and the East 28 Feet of Lot 4, Block 3, Burdale, according to the Map or Plat thereof, as recorded in Plat Book 4, Page 2, of the Public Records of Collier County, Florida. Parcel No. 25081280002 (2522 Linwood Avenue, Naples, FL 34112) 11, Lot 33, Block 188, Golden Gate, Unit 6, according to the Plat thereof, as recorded in Plat Book 5, Pages 124- 134, of the Public Records of Collier County, Florida. Parcel No. 36304720005 (2049 55th Terrace SW, Naples, FL 34116) 12. The West 75 Feet of the West 150 Feet of Tract No. 90, Golden Gate Estates, Unit No. 42, according to the Map or Plat thereof, as recorded in the Plat Book 7, Page 27, of the Public Records of Collier County, Florida. Parcel No. 38847800008 (2860 641h Avenue NE, Naples, FL 34120) 13. The West 75 Feet of the West 150 Feet of Tract 79, Golden Gate Estates, Unit No. 42, according to the Plat thereof, as recorded in Plat Book 7, Page 27, of the Public Records of Collier County, Florida. Parcel No. 38846560006 (2765 58th Avenue NE, Naples, FL 34120) 14. The West 75 Feet of Tract 85, Golden Gate Estates, Unit 72, according to the Map or Plat thereof, as recorded in Plat Book 5, Page 8, Public Records of Collier County, Florida. Parcel No. 40419040006 (4460 22nd Avenue NE, Naples, FL 34120) 15. Lot 19 and the East Half of Lot 20, Avalon Estates Replat of Unit No. 1, a Subdivision According to the Map or Plat Thereof, as recorded in Plat Book 4, Page 65, of the Public Records of Collier County, Florida. Parcel No. 22670520008 (3614 Poplar Way, Naples, FL 34112) 16. Lot 8, Block 59, Golden Gate, Unit 2, according to the Plat Thereof, recorded in Plat Book 5, Pages 65 through 77, of the Public Records of Collier County, Florida. Parcel No. 35774280008 (2197 44th Terrace SW, Naples, FL 34116) Packet Page -1792- 2/12/2013 16.D.3. 17. The West 75 Feet of the East 180 Feet of Tract 90, Golden Gate Estates, Unit No. 62, according to the Plat thereof, as recorded in Plat Book 5, Page 87, of the Public Records of Collier County, Florida. Parcel No. 39781520003 (3685 41st Avenue NE, Naples, FL 34120) 18. The West 75 Feet of the East 180 Feet of Tract 43, Golden Gate Estates, Unit No. 71, According to the Plat thereof, recorded in Plat Book 5, Page 7, of the Public Records of Collier County, Florida. Parcel No. 40355240009 (3380 20th Avenue NE, Naples, FL 34120) 19. Lot 21, Block 172, Golden Gate, Unit 5, According to the Plat thereof, as Recorded in Plat Book 5, Pages 117 through 123, inclusive, of the Public Records of Collier County, Florida. Parcel No. 36245160009 (1853 51st Terrace SW, Naples, FL 34116) 20. Lot 17, Block 121, Golden Gate, Unit 4, according to the plat thereof, recorded in Plat Book 5, Pages 107 to 116, inclusive, of the Public Records of Collier County, Florida. Parcel No. 36113200004 (4913 22nd Place SW, Naples, FL 34116) 21. Lot 8, Block 4, Naples Manor Lakes, according to the Plat thereof, as recorded in Plat Book 3, Page 86, of the Public Records of Collier County, Florida. Parcel No. 62252520004 (5230 Gilchrist Street, Naples, FL 34113) 22, Lot 22, Block 185, Golden Gate, Unit 6, according to the Plat thereof, of record in Plat Book 5, Pages 124 through 134, of the Public Records of Collier County, Florida. Parcel No. 36300880004 (2180 52nd Terrace SW, Naples, FL 34116) 23. Lot 11, Block 135, Golden Gate, Unit 4, according to the Plat thereof, recorded in Plat Book 5, Page 112, of the Public Records of Collier County, Florida. Parcel No. 36122520005 (4833 210 Avenue SW, Naples, FL 34116) 24. Lot 23, Block 240, Golden Gate, Unit 7, according to the map or plat thereof, on file and recorded with the Clerk of the Circuit Court and recorded at Plat Book 5, Page 141, Public Records of Collier County, Florida. Parcel No. 36439240007 (3025 52nd Street SW, Naples, FL 34116) 25. Lot 5, Block 56, Golden Gate, Unit 2, according to the plat thereof, as recorded in Plat Book 5, Pages 65 through 77, inclusive, of the Public Records of Collier County, Florida. Parcel No. 35772680008 (4440 19th Avenue SW, Naples, FL 34116) 26. Lot 11, Block 45, Unit 2, Golden Gate,, according to the plat thereof, as recorded in Plat Book 5, Pages 65 through 77, inclusive, of the Public Records of Collier Packet Page -1793- 2/12/2013 16.D.3. ^ County, Florida. Parcel No. 35764920006 (4300 17th Avenue SW, Naples, FL 34116) 27. Lot 24, Block 167, Golden Gate, Unit No. 5, according to the plat thereof, as recorded in Plat Book 5, Pages 117 through 123, of the Public Records of Collier County, Florida. Parcel No. 36241760005 (2100 51St Terrace SW, Naples, FL 34116) 28, Lot 33, Block 218, Golden Gate, Unit 6 Part 1, according to the plat thereof, as recorded in Plat Book 9, Pages 1 through 7, inclusive, of the Public Records of Collier County, Florida. Parcel No. 36383680001 (5401 21s' Place SW, Naples, FL 34116) 29. Lot 11, COL- LEE -CO Gardens, according to the Plat thereof, as recorded in Plat Book 1, Page 30, of the Public Records of Collier County, Florida. Parcel No. 26830320002 (2972 Gordon Street, Naples, FL 34112) 30. Lot 5, Block D, South Tamiami Heights, according to the Plat thereof, recorded in Plat Book 3, Page 44, of the Public Records of Collier County, Florida; Parcel No. 74412200000 (3511 Okeechobee Street, Naples, FL 34112) 31. Lot 10, Block 259, Golden Gate, Unit 7, according to the Plat thereof, recorded in Plat Book 5, Pages 135 through 146, inclusive, of the Public Records of Collier County, Florida. Parcel No. 36450840004 (4914 301h Place SW, Naples, FL 34116) 32. Lot 33, Block 5 of Trail Acres, according to the Plat thereof, as recorded in Plat Book 3, Page(s) 50, of the Public Records of Collier County, Florida. Parcel No. 77214040009 (158 5th Street, Naples, FL 34114) 33. The West Half (West 1 /s) of the Northwest Quarter (Northwest 1/4) of the Northeast Quarter (Northeast 1/4) of the Northwest Quarter (Northwest 1/4) of the Southwest Quarter (Southwest 1/4) of Section 16, Township 50 South, Range 26 East, Less the Northerly 30 feet thereof, Public Records of Collier County, Florida. Parcel No. 00418760000 (6067 Polly Avenue, Naples, FL 34112) 34. Lot 2, Block 192, Golden Gate, Unit 6, according to the plat thereof, recorded in Plat Book 5, Page 130, of the Public Records of Collier County, Florida. Parcel No. 36308560009 (5418 23rd Court SW, Naples, FL 34116) 35. Lot 25, Block 76, Golden Gate, Unit 2, according to the Plat thereof, as recorded in Plat Book 5, Page(s) 65- 77, of the Public Records of Collier County, Florida. Parcel No. 35780960008 (2183 41St Street SW, Naples, FL 34116) Packet Page -1794- 2/12/2013 16.D.3. 36. Lot 58, Hallendale, according to the map or plat thereof, as recorded in Plat Book ^ 4, Page(s) 25, Public Records of Collier County, Florida. Parcel No. 48782160000 (No Site Address) 37. Lot 59, Hallendale, according to the map or plat thereof, as recorded in Plat Book 4, Page(s) 25, Public Records of Collier County, Florida. Parcel No. 48782200009 (No Site Address) 38, Lot 63, Hallendale, according to the map or plat thereof, as recorded in Plat Book 4, Page(s) 25, Public Records of Collier County, Florida. Parcel No. 48782320002 (No Site Address) 39. Lot 20, Block 6, Avalon Estates, Unit No. 1, according to the Map of the Plat thereof, as recorded in Plat Book 3, Page 62, of the Public Records of Collier County, Florida. Parcel No. 22624480107 (No Site Address) 40. Lot 18, Block 6, Avalon Estates, Unit No. 1, according to the Plat thereof, as recorded in Plat Book 3, Page 62, of the Public Records of Collier County, Florida. Parcel No. 22624440008 (4561 Dominion Drive, Naples, FL 34112) 41. The West 1/z of Lot 10 and All of Lots 11 & 12, Block C, Whispering Pines, According to the Plat Thereof, as Recorded in Plat Book 4, Page 17, Public Records of Collier County, Florida. Parcel No. 81732480001 (2742 Storter Avenue, Naples, FL 34112) 42. The East 180 Feet of Tract 91, Golden Gate Estates, Unit No. 42, according to the Plat thereof, of record in Plat Book 7, Page 27, of the Public Records of Collier County, Florida. Parcel No. 38848000001 (2883 62nd Avenue NE, Naples, FL 34120) Exhibit B. Budget GENERAL Developer will be provided ownership in thi . -six (36) fort (42) properties acquired by the Grantee for the purpose of rehabilitation or redevelopment for disposition to NSP- eligible persons or families. Packet Page -1795- 2/12/2013 16.D.3. Grantee will not provide Developer any NSP1 funding to support the activities described in this Agreement. Therefore, there is no activity budget associated with this Agreement. Grantee shall pay Developer a Five Thousand Five Hundred and 00/100 Dollars ($5,500) developer fee for each of the thirty-six Q6) f^MtyT twe (4 -2 properties associated with this Agreement. The maximum combined developer fee paid by Grantee to Developer through this Agreement shall be One Hundred Ninety_ Eight Thousand 00/100 Dollars (198,000) Tive H +mdre Tl,;r ty One Thousand nn 100 Dell ,.r ($2-3 ,n09) this amount represents a cumulative of developer fees paid for each of the properties associated with this Agreement. IN WITNESS WHEREOF, the GRANTEE and the 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: Dwight E. Brock, Clerk of Courts By: Dated: (SEAL) First Witness TType /print witness nameT Second Witness TType /print witness nameT BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA By: Georgia A. Hiller, Esq. Chairwoman Habitat for Humanity of Collier County, Inc. A Florida not- for- profit corporation By: Nick Kouloheras Chief Executive Officer Approved as to forth and legal sufficiency: 11 .. IX I Jennifer B. White Assistant County Attorney Packet Page -1796- 2/12/2013 16.D.3. 1. NSP3 Grantee Information NSP3 Program Administrator Contact Information Name (Last, First) Grant, Kimberley Email Address kimberleygrant @colliergov.net Phone Number 239 - 252 -4663 Mailing Address 3339 Tamiami Trail E., Suite 211, Naples, Florida 34112 -5361 2. Areas of Greatest Need Map Submission The map generated at the HUD NSP3 Mapping Tool for Preparing Action Plan website is included as an attachment. Data Sources Used to Determine Areas of Greatest Need Describe the data sources used to determine the areas of greatest need. Response Collier County consulted local, state, and national data sources in determining the areas of greatest need. The use of myriad data sources allowed both a macro and micro and analysis of the areas of critical concern, local and national trends, forecasting future demand, and leveraging of existing resources. The goal of Collier County when determining the areas of greatest need was to stabilize neighborhoods, arrest decline, and produce a more sustainable, inclusive, and integrated community. Local Data Source: Naples Area Board of Realtors Multiple Listing Service (MLS). Qualifiers: Excluded Marco Island, vacant land, commercial property, multi - family, and time - shares. Included mobile homes, manufactured homes, short sales, and foreclosures. All properties must have a minimum of 350 square feet. Data Used: Median sales price, median list price, number of listings, and number of sales from January 2010 to October 2010. The data provided a macro analysis of patterns and trends in the countywide residential real estate market. There continues to be a significant delta between the number of listings versus number of sales, and the median listing price versus the median sales price. For example, in October 2010 there were 434 sales compared to 7,966 properties listed; only 5.45% of properties listed for sale in October 2010 sold. Likewise, the median listing price in October 2010 was $324,000 compared to a median sales price in the same month of $165,000; the median sales price was approximately half of the median list price. It may be true that until these deltas display an extended decrease in severity, the local housing market will continue to struggle. However, the dichotomy between the rural housing market and the coastal housing market may distort the median data figures; thus, drawing conclusions at this level of analysis may be problematic. For example, the December 2010 sale of a home in the prestigious Port Royal community for $14.55 million dollars will likely distort the countywide median sales price data for that NSP3 Action Plan Collier County, Florida Packet Page -1797- Page 1 2/12/2013 16.D.3. period. Source: Various; complied and reported in the U.S. Department of Housing and Urban Development's (HUD) NSP3 Downloadable Data Files. Qualifiers: Data reflects market conditions for the second quarter of 2010. For further details, consult the "Data Dictionary" prepared by HUD and available at www.huduser.org /portal /datasets /NSP.html. Data Used: Collier County was divided into 223 distinct areas by HUD when preparing data to assist in calculating the formula allocations amounts for NSP3. All data were used by HUD to calculate a NSP3 foreclosure need score ranging from one to twenty, with twenty being the worst. Locally, particular attention was paid to the following factors: foreclosure need score, percent low- moderate households, USPS vacancy rates, percentage of high -cost mortgages, and the estimate number of properties needed to make an impact. In order to be eligible for participation in NSP3, an area must have a foreclosure need score of at least seventeen on the scale of twenty. Of the 223 areas HUD divided Collier County into, 206 have a foreclosure need score of at least 17 (92.38 percent). However, many of the areas would require expenditures in excess of the available NSP3 funding. Collier County must seek to deeply target funding into those areas where HUD believes we can make an impact based upon current market conditions and projections for future decline or instability. Source: Collier County NSP1 experiences Qualifiers: Collier County was allocated $7,306,750 and successfully obligated 100 percent of the funds within 18 months. The program design generates program income upon sale to an income - qualified person or family. As such, activities are ongoing. Data Used: Acquisition locations, average acquisition cost, average rehabilitation cost, and return of program income. Collier County's NSP1 program has been successful in acquiring properties in focused geographical areas most adversely affected by the foreclosure crisis. When determining areas of greatest need for NSP3, consideration was given to properties approved using NSP1 funds. Furthermore, having already acquired over 70 properties with NSP1, Collier County has a considerable amount of data on costs. As such, we sought areas for NSP3 funding that we have adequate funding to make a real impact. State Data Source: Shimberg Center for Housing Studies, University of Florida. Qualifiers: Data projects affordable housing needs based upon the 2000 Census. While this data is dated, the Center was established in 1988 by the Florida legislature (Section 240.5111, Florida Statutes) as the State's source of research relating to the problems and solutions associated with the availability of affordable housing in Florida. As such, one must consider the data in any analysis of affordable housing needs. Data Used: Collier County used cost burdened household data, divided by home ownership and rental, to assess the types of housing units projected to meet an unmet need in the community. Cost burdened is defined as a household spending greater than 30 percent of household income on housing related expenses. Analyzing data from the Shimberg Center, Collier County is projected to have an average annual increase of 739.55 cost burdened household units between 2010 and 2030. The data shows the increase by .SP3 Action Plan Collier County, Florida Packet Page -1798- Page 2 2/12/2013 16.D.3. income range and housing type (home ownership versus rental) and may prove a valuable tool in the long range planning and implementation of the NSP3 program. National Data Source: Neighborhood Stabilization Program Resource Exchange and other sources Qualifiers: Information was assembled to ensure Collier County's NSP3 areas of greatest need could be effectively served with the resources available using best practices, toolkits, and examples of successful implementations in NSP1 and NSP2. Finally, national media coverage on housing related issues was used to provide context within the broader economic crisis. Much of this data is not quantitative, but remains valuable when selecting target areas. Data Used: Two toolkits available on the Neighborhood Stabilization Program Resource Exchange were of particular benefit when determining areas of greatest need: Instructions for Completing the NSP3 Substantial Amendment or Abbreviated Action Plan and the NSP3 Program Design Guidebook. Figure 1 -2 in the NSP3 Program Design Guidebook was used to consider market types and the implications for program design. For example, in an area with low demand and high supply of eligible properties, Collier County may undertake demolition of blighted structures and land bank for future redevelopment. National media coverage was used to provide a context within the broader economic crisis when planning activities and selecting areas of greatest need. Topics considered included, but were not limited to: the growth in families "doubling up" due to loss of income or foreclosure; decreasing local government budgets resulting in, among other things, fewer funds for maintaining abandoned houses and funding social service initiatives; challenges in providing effective homeless prevention; uncertainty surrounding certain documents used by banks during foreclosure proceedings; presence of "Chinese Drywall" in homes and the adverse effects on owners; the state of housing and the uncertainties surround future prices; Florida Economic Outlook: July 2010 (Wells Fargo). Determination of Areas of Greatest Need and Applicable Tiers Describe how the areas of greatest need were established and whether a tiered approach is being utilized to determine the distribution of funding. Response: It is not proper, nor is it the intent, for the Collier County NSP3 to compete with the private market; the private market will take care of the private market. Rather, the Collier County NSP3 should deeply target those areas that are not attractive to private investors and homebuyers, and which are causing instability, deterioration, blight, and unstable conditions in the community. For purposes of NSP3, HUD divided Collier County into 223 unique target areas. Providing this number of small target areas will permit Collier County to deeply target areas adversely impacted by the foreclosure crisis. However, the County's success will depend on the availability of eligible properties. As such, Collier County will employ a tiered approach. Based upon data collected from NSP1, Collier County NSP3 allocation will fund activities on approximately thiFt • ene «" thirty 30 units as funding allows. A tiered approach will further define within the general target area, sub -areas (or tiers), to ensure that the County is able to meet the impact criteria provided by HUD. Where funds are insufficient to meet the impact criteria, the County will seek NSP3 Action Plan Collier County, Florida Packet Page -1799- Page 3 n 2/12/2013 16.D.3. other tiers in which funds may be deeply targeted and produce the results expected by HUD, the Housing and Economic Recovery Act of 2008, and the Wall Street Reform and Consumer Protection Act of 2010 (Dodd -Frank Act). Finally, when assessing tiers to target with NSP3, the County will consider properties assisted with NSP1. For example, the County has made great efforts to stabilize an area loosely defined as Golden Gate City. Further investment in this area and the associated tiers will maximum the effects of both NSP1 and NSP3. Additionally, the past and future use of NSP1 in conjunction with NSP3 may assist the County in meeting the impact criteria. The following have been selected as the target areas for Collier County's NSP3: Target Area One — Golden Gate Citv (HUD Neighborhood ID 1108764 • Tier One — Census Tract 0104.10 • GeoID 12021923012630001041OUl • GeoID 120219230126300010410U2 • GeoID 120219230126300010410U3 • Tier Twe — Census T-Fa6t 104.09 • r_ee!P 121 0_21 3 9-230-1 26- 09n16nno1 is • GeelP��m�a��n��cannnannnai�� • Geell) • 6iv1n 1 _2r»3o2_3n3 21cannnInnnoi in v x =vcx� =voxzvvvwsv- rv�v�r • Gee! 14202192-3 930409' 19 • Tier Two - Census Tract 104.19 o GeoID 1202101419 • Tier Two - Census Tract 104.20 o GeoID 1202101420 • Tier Three — Census Tract 0104.11 • GeolD 120219230126300010411U1 • GeoID 120219230126300010411U2 • GeoID 120219230126300010411U3 • GeoID 120219230126300010411R3 • GeoID 120219230126300010411111 Target Area Two — East Naples Bayshore Gatewav CRA (HUD Neighborhood ID 3981140 • Tier One — Census Tract 0107.01 • GeoID 120219230199999010701U4 • GeoID 120219230199999010701U1 • GeoID 120219230199999010701U2 • GeoID 120219230199999010701U3 • GeoID 120219230199999010701112 Please note that the above data is presented and identified as contained in HUD's NSP3 Mapping Tool. Copies of the reports are attached to this application. nISP3 Action Plan Collier County, Florida Packet Page -1800- Page 4 2/12/2013 16.D.3. 3. Definitions and Descriptions Definitions Term Definition Blighted Structure In conformance with Section 163.340, Florida Statutes, a "blighted structure" means a structure that is deteriorated, or deteriorating, in which conditions, as indicated by government- maintained statistics or other studies, are leading to economic distress or endangering life or property, and in which two or more of the following factors are present: a) Predominance of defective or inadequate street layout, parking facilities, roadways, bridges, or public transportation facilities; b) Aggregate assessed value of real property in the area for ad valorem tax purposes have failed to show any appreciable increase over the 5 years prior to the finding of such condition; c) Faulty lot layout in relation to size, adequacy, accessibility, or usefulness; d) Unsanitary or unsafe conditions; e) Deterioration of site or other improvements; f) Inadequate and outdated building density patterns; g) Falling lease rates per square foot of office, commercial, or industrial space compared to the remainder of the county or municipality; h) Tax or special assessment delinquency exceeding the fair value of the land; i) Residential and commercial vacancy rates higher in the area than in the remainder of the county or municipality; j) Incidence of crime in the area higher than in the remainder of the county or municipality; k) Fire and emergency medical service calls to the area proportionately higher than in the remainder of the county or municipality; 1) A greater number of violations of the Florida Building Code in the area than the number of violations recorded in the remainder of the county or municipality; m) Diversity of ownership or defective or unusual conditions of title which prevent the free alienability of land within the deteriorated or hazardous area; or n) Governmentally owned property with adverse environmental conditions caused by a public or private entity. However, the term "blighted structure" or "blighted area" also means any structure or area in which at least one of the factors identified in paragraphs (a) through (n) are present and all taxing authorities subject to s. 163.387(2)(a) agree, either by interlocal agreement or agreements with the agency or by resolution, that the structure or area is blighted. Affordable Rents 24 CFR § 92.252 NSP3 Action Plan Collier County, Florida Packet Page -1801- Page 5 2/12/2013 16.D.3. Rents shall not exceed the Fair Market Rents (FMR) as published annually by HUD for the Naples — Marco Island Metropolitan Statistical Area (MSA). Furthermore, the maximum rent are the lesser of: 1) The fair market rent for existing housing for comparable units in the area as established by HUD under 24 CFR 888.111; or 2) A rent that does not exceed 30 percent of the adjusted income of a family whose annual income equals 65 percent of the median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit. Furthermore, when the NSP3 assisted unit is occupied by very low- income families the rent requirements are: 1) The rent does not exceed 30 percent of the annual income of a family whose income equals 50 percent of the median income for the area, as determined by HUD, with adjustments for smaller and larger families. However, if the rent determined under this paragraph is higher than the applicable rent under paragraph (1) or (2) of this section, then the maximum rent for units under this paragraph is that calculated under paragraph (1) or (2) of this section; and 2) The rent does not exceed 30 percent of the family's adjusted income. If the unit receives Federal or State project -based rental subsidy and the very low- income family pays as a contribution toward rent not more than 30 percent of the family's adjusted income, then the maximum rent (i.e., tenant contribution plus project -based rental subsidy) is the rent allowable under the Federal or State project -based rental subsidy program. - Term Definition Long -Term Affordability 24 CFR 92.252(a), (c), (e), and (f), and 92.254 Rental: Lone -Term Affordability The NSP3- assisted units must meet the affordability requirements for not less than the applicable period specified below, beginning after project completion. The affordability requirements for NSP3- assisted rental units apply without regard to the term of any loan or mortgage or the transfer of ownership, except that the affordability restrictions may terminate upon foreclosure or transfer in lieu of foreclosure. Collier County will enforce long -term affordability through the use of a recorded lien, covenant, or deed restriction against the assisted property. Rental housing activity Minimum period of affordability in years Rehabilitation or acquisition of existing housing per unit amount of NSP3 funds: 5 Under $15, 000 .................... ............................... $15,000 to $40, 000 ............ ............................... 10 Over $40,000 or rehabilitation involving 15 NSP3 Action Plan Collier County, Florida Packet Page -1802- Page 6 refinancing .......................... ............................... New construction or acquisition of newly constructed housing ........... ............................... 20 2/12/2013 16.D.3. Subsequent rents during the affordability period will be calculated and applied in conformance with 24 CFR 92.252(f). Homeownership: Lone -Term Affordability The NSP3- assisted housing must meet the affordability requirements for not less than the applicable period specified in the following table, beginning after project completion. These restrictions are a minimum and Collier County may elect to impose longer affordability periods. The per unit amount of NSP3 funds and the affordability period that they trigger are described more fully below under "Homeownership: Recapture Provisions." Homeownership assistance NSP3 amount per -unit Minimum period of affordability in years Under $15, 000 .................... ............................... 5 $15,000 to $40, 000 ............ ............................... 10 Over $40, 000 ...................... ............................... 15 Homeownership: Recapture Provisions The recapture provisions will ensure that Collier County or their designated Developer recoups all or a portion of the NSP3 assistance benefiting the homebuyer, if the housing does not continue to be the principal residence of the family for the duration of the period of affordability. The period of affordability is based upon the total amount of NSP3 funds subject to recapture described above. Collier County may choose to recapture the entire amount of NSP3 assistance or a reduced amount on a prorata basis for the time the homeowner has owned and occupied the housing measured against the required affordability period. The net proceeds may be divided proportionally as set forth in the following mathematical formulas: NSP3 investment X Net proceeds = NSP3 amount to County NSP3 investment + homeowner investment homeowner investment X Net proceeds= amount to homeowner NSP3 investment + homeowner investment Collier County may permit the homebuyer to recover the homebuyer's entire investment (downpayment and capital improvements made by the owner since purchase) before recapturing the NSP3 investment. Housing Rehabilitation Standards General Standards All NSP3- assisted housing will be required to meet or exceed local and state building codes. All units that require rehabilitation must meet or exceed the current Florida Building Code (FBC). The current code applied in Collier NSP3 Action Plan Collier County, Florida Packet Page -1803- Page 7 NSP3 Action Plan Collier County, Florida 2/12/2013 16.D.3. County is 2007 FBC. Collier County will incorporate energy - efficient, sustainable building practices when feasible, including the use of green building to provide long- term affordability and attractiveness within the community. Furthermore, Collier County encompasses a large coastal area that subjects the residents to the risk of hurricanes and severe flooding. As such, all NSP3- assisted housing will undergo hurricane hardening and damage mitigation, when feasible. Required HUD Standards In compliance with the requirements of HUD, the following standards will apply to gut rehabilitation and new construction projects. 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. a) Residential buildings up to three stories must be designed to meet the standard for Energy Star Qualified New Homes; b) Mid- or high -rise multifamily housing must be designed to meet American Society of Heating, Refrigerating, 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) In further compliance with the requirements of HUD, the following standards will apply to all NSP3- assisted housing units. a) All rehabilitated units must meet the following standards to the extent applicable to the work undertaken: L Older obsolete products and appliances (such as windows, doors, lighting, hot water heaters, furnaces, boilers, air conditioning units, refrigerators, clothes washers and dishwashers) must be replaced with Energy Star -46 labeled products; ii. Water efficient toilets, showers, and faucets, such as those with the WaterSense label must be installed; iii. Housing must be improved to mitigate the impact of disasters (e.g. hurricane, flooding, and fire) HUD also encourages the adoption of energy efficient and environmentally - friendly green elements. Collier County will seek to incorporate the standards and policies of the Florida Green Building Coalition. A copy of the standards and policies is attached to this Action Plan. Packet Page -1804- Page 8 2/12/2013 16.D.3. 4. Low - Income Targeting Low - income Set -Aside Amount Identify the estimated amount of funds appropriated or otherwise made available under the NSP3 to be used to provide housing for individuals or families whose incomes do not exceed 50 percent of area median income. Response: Collier County will set -aside 25 percent of funds appropriated to the County to provide housing for individuals or families whose incomes do not exceed 50 percent of the area median income, adjusted for household size. The final dollar amount is 25 percent of the County's appropriation, rounded up to the nearest thousand. Please note that activities funded with program income are not subject to the 25 percent set -aside requirement, however they may be used to meet the regulatory requirement. Total low- income set -aside percentage (must be no less than 25 percent): 25.00% Total funds set aside for low- income individuals = $972,000.00 Meeting Low - income Target Provide a summary that describes the manner in which the low- income targeting goals will be met. Response: Habitat for Humanity of Collier County, Inc. (hereinafter, "Habitat for Humanity" or "Developer "), has been successful in providing homeownership to households earning less than 50 percent of the area median income. Through a developer agreement, Collier County shall partner with Habitat for Humanity to meet the low- income targeting requirement through the provision of affordable homeownership. S. Acquisition and Relocation Demolition or Conversion of LMI Units Does the grantee intend to demolish or convert any low- and moderate- income dwelling units (i.e., <_ 80% of area median income)? Yes If yes, fill in the table below. Question Number of Units The approximate number of low- and moderate - income dwelling units—i.e., 15 80% of area median income — reasonably expected to be demolished or converted as a direct result of NSP- assisted activities. 3 units The approximate total number of NSP affordable housing units made available to low -, moderate -, and middle- income households — i.e., <_ 120% of area median income — reasonably expected to be produced by activity and income level as provided for in DRGR, by each NSP activity providing such housing (including a proposed time schedule for commencement and completion). All activities have an estimated NSP3 Action Plan Collier County, Florida Packet Page -1805- Page 9 2/12/2013 16.D.3. 6. Public Comment Citizen Participation Plan Briefly describe how the grantee followed its citizen participation plan regarding this proposed substantial amendment or abbreviated plan. Response: The Collier County Citizen Participation Plan was adopted January 9, 2001. The following steps were taken in preparation of this NSP3 substantial amendment: 1. Technical Assistance — In addition to providing public access to the draft and development document used in the preparation of this substantial amendment, Collier County was available to provide technical assistance to citizens, citizen groups, nonprofit organizations and agencies that requested assistance in understanding the NSP3. 2. Public Hearings /Meetings — The development of the Collier County NSP3 substantial amendment was contemplated in regular, publicly advertised meeting(s) of the Affordable Housing Advisory Committee, the Board of County Commissioners, and advertised in a newspaper of general circulation. 3. Fifteen -Day Public Comment Period —The County published notice of the availability of the proposed NSP3 substantial amendment in a newspaper of general circulation and posted it on the County's website. The publication described, among other items, the total County appropriation, target areas, and proposed activities. 4. County Commission —Citizen participation requirements shall not be construed to restrict the responsibility or authority of the County for the development and execution of the NSP3 program activities. The County Commission remains the sole approving authority for the program and any amendments. /__*1 Summary of Public Comments Received. ASP3 Action Plan Collier County, Florida Packet Page -1806- Page 10 commencement date of March 1, 2011 and completion date of February 28, 2014. Activity 1 LMMH /LH25 — 25 units Activity 2 LMMH — 5 units The number of dwelling units reasonably expected to be made available for 6 -WRits households whose income does not exceed 50 percent of area median income. 7 units 6. Public Comment Citizen Participation Plan Briefly describe how the grantee followed its citizen participation plan regarding this proposed substantial amendment or abbreviated plan. Response: The Collier County Citizen Participation Plan was adopted January 9, 2001. The following steps were taken in preparation of this NSP3 substantial amendment: 1. Technical Assistance — In addition to providing public access to the draft and development document used in the preparation of this substantial amendment, Collier County was available to provide technical assistance to citizens, citizen groups, nonprofit organizations and agencies that requested assistance in understanding the NSP3. 2. Public Hearings /Meetings — The development of the Collier County NSP3 substantial amendment was contemplated in regular, publicly advertised meeting(s) of the Affordable Housing Advisory Committee, the Board of County Commissioners, and advertised in a newspaper of general circulation. 3. Fifteen -Day Public Comment Period —The County published notice of the availability of the proposed NSP3 substantial amendment in a newspaper of general circulation and posted it on the County's website. The publication described, among other items, the total County appropriation, target areas, and proposed activities. 4. County Commission —Citizen participation requirements shall not be construed to restrict the responsibility or authority of the County for the development and execution of the NSP3 program activities. The County Commission remains the sole approving authority for the program and any amendments. /__*1 Summary of Public Comments Received. ASP3 Action Plan Collier County, Florida Packet Page -1806- Page 10 2/12/2013 16.D.3. No public comments were received. 7. NSP Information by Activity NSP3 Action Plan Collier County, Florida The activity will attempt to stabilize neighborhoods, arrest decline, and create a more sustainable, integrated, and affordable community. The local housing market conditions in the target areas generally consists of elevated vacancy rates, greater percentage of homes financed with a high cost loan, a large number of mortgages seriously delinquent (90+ or more delinquent or in foreclosure), and a significant percentage decline in home values since the peak value. For example, since the peak value, home values in the target areas have fallen 48.4 percent. The Developer will seek to purchase homes and residential properties that have been abandoned or foreclosed upon, in order to sell or redevelop such homes and properties. The Developer may, with written consent by the County. demolish blighted structures acquired by the Developer in order to redevelop as housing. When selecting target areas for this activity, Collier County paid close attention to the impact score assigned by HUD. The impact score is the estimated number of properties needed to make an impact in the identified target area. Consideration of the impact score is especially important because, as HUD states, "nationwide there have been over 1.9 million foreclosure completions in the past two years. NSP 1, 2, and 3 combined are estimated to only be able to address 100,000 to 120,000 foreclosures. To stabilize a neighborhood Packet Page -1807- Page 11 Activity? Number 1 Activity Name Acquisition and Rehabilitation (LMMH) Select all that apply: ❑ Eligible Use A: Financing Mechanisms Uses Eligible Use B: Acquisition and Rehabilitation ❑ Eligible Use C: Land Banking —Z —Eligible Use D: Demolition ® Eligible Use E: Redevelopment 24 CFR 570.201(a) Acquisition, (b) Disposition, (d) Clearance for blighted structures, (i) Relocation, and (n) Direct homeownership assistance (as CDBG Activity or, below); 24 CFR 570.202 eligible rehabilitation and preservation Activities, activities for homes and other residential properties. HUD notes that any of the activities listed above may include required homebuyer counseling as an activity delivery cost. National Objective Low Moderate Middle Income Housing (LMMH) LH25 Activity Number 1 will provide funding to Developer to acquire properties that have been abandoned or foreclosed upon. Once rehabilitation is complete, utilizing funding provided by the Developer, the home will be sold to persons or households earning not greater than 89120 percent area median income, adjusted for household size. NSP3 Action Plan Collier County, Florida The activity will attempt to stabilize neighborhoods, arrest decline, and create a more sustainable, integrated, and affordable community. The local housing market conditions in the target areas generally consists of elevated vacancy rates, greater percentage of homes financed with a high cost loan, a large number of mortgages seriously delinquent (90+ or more delinquent or in foreclosure), and a significant percentage decline in home values since the peak value. For example, since the peak value, home values in the target areas have fallen 48.4 percent. The Developer will seek to purchase homes and residential properties that have been abandoned or foreclosed upon, in order to sell or redevelop such homes and properties. The Developer may, with written consent by the County. demolish blighted structures acquired by the Developer in order to redevelop as housing. When selecting target areas for this activity, Collier County paid close attention to the impact score assigned by HUD. The impact score is the estimated number of properties needed to make an impact in the identified target area. Consideration of the impact score is especially important because, as HUD states, "nationwide there have been over 1.9 million foreclosure completions in the past two years. NSP 1, 2, and 3 combined are estimated to only be able to address 100,000 to 120,000 foreclosures. To stabilize a neighborhood Packet Page -1807- Page 11 2/12/2013 16.D.3. requires focused investment." Therefore, target areas were selected in which Collier County would be able to make the impact recommended by HUD. When providing assistance to persons, families, non - profit agencies, or other organizations, the following general terms will apply: • Range of interest rates: 0 percent to 5 percent • Term of assistance: 5 years to 30 years • Tenure of beneficiaries: homeowners The activity is expected to benefit income - qualified persons or households by producing safe, decent, and affordable housing. Additionally, the Developer may seek to incorporate energy efficient and environmentally - friendly green elements in each project. One of the major obstacles to affordable homeownership is saving for a down payment. Oftentimes the low - and very-low income residents of Collier County are struggling to pay a monthly rent payment, as well as other household expenses. This activity will benefit income- qualified persons or households by offering a newly rehabilitated property through Habitat for Humanity to reduce the heavy burden of saving a sizable down payment. Another factor affecting residents within the target areas is reduced employment opportunities. Collier County has long relied on industries fueled by population growth to provide employment opportunities for residents. According to the Collier County Economic Development Council's 2009 Market Facts report, construction, retail trade and accommodations, and food service employ the largest number of Collier County residents. All three industries have an average wage well below the area median income ($44,592,.$29,120, and $22,683 respectively) thereby making any disruption in income potentially devastating. This activity will benefit income - qualified persons or households be providing affordable housing that is integrated and, whenever possible, located near employment centers and public transportation. This activity will produce housing that is intended to remain affordable. In compliance with NSP3 regulations, Collier County has adopted as a safe harbor the affordability standards of the HOME program at 24 CFR 92.252(a), (c), (e), and (f), and 92.254. The Developer will seek, to the maximum extent possible, to hire or cause to be hired employees who reside in the vicinity of NSP3 projects or contract with small businesses that are owned and operated by persons residing in the vicinity of the project. For the purposes of NSP3, HUD defines "vicinity" as each neighborhood identified within this document as being the areas of greatest need. NSP3 Action Plan Collier County, Florida Page 12 Packet Page -1808- 2/12/2013 16.D.3. Neighborhood ID 1108764: Golden Gate City • Tier One —Census Tract 0104.10 • Tier Two —Census Tract 0304 -9g 0104.19, 0104.20 Location Description • Tier Three — Census Tract 0104.11 Neighborhood ID 3981140: East Naples Bayshore Gateway CRA • Tier One — Census Tract 0107.01 Source of Funding Dollar Amount NSP3 $3,107,332 Budget' ° $ Total Budget for Activity $3,107,332 Acquire and rehabilitate approximately twenty f^,,. (24 twenty -five (25) units Performance Measures of housing for LMWIH and LH25, as funding permits. Projected Start Date March 1, 2011 Projected End Date February 28, 2014 Collier County Department of Housing, Name Human, and Veteran Services Responsible Location 3339 Tamiami Trail E., Suite 211, Organization Naples, Florida 34112 Administrator. Contact.lnfo 239- 252 -4663 kimberleygrant @colliergov.net NSP3 Action Plan Collier County, Florida Page 13 Packet Page -1809- 2/12/2013 16.D.3. National<Objective Low Moderate Middle Income Housing (LMMH) Activity Number 2 will provide funding to Habitat for Humanity to purchase and operate a land bank. As detailed below, the high cost of land was a major contributor to the lack of affordable housing during the height of the local housing market. The activity will attempt to stabilize neighborhoods, arrest decline, and create a more sustainable, integrated, and affordable community. The local housing market conditions in the target areas generally consists a high supply of eligible properties, low demand for housing, or high levels of vacancy. Furthermore, the target areas are suffering from, or are at risk for blighted conditions. NSP3 provides a unique opportunity to improve a community be permitting land banking. At the peak of the housing market in Collier County (4`h quarter 2005), only 16.3% of homes sold were affordable to a household earning the area median Activity Description income (source: National Association of Home Builders /Wells Fargo Housing Opportunity Index). The cost of land was a major contributor to the lack of affordable housing during the housing market boom. Use funds under this activity, Collier County will prepare for the increase in vacant land costs by seeking to acquire properties at low cost. The Land Bank activity will not produce a range of interest rates, terms of assistance, or tenure of beneficiaries. Rather, those elements will present themselves upon redevelopment of the subject property within ten (10) years as required by HUD. This activity will not produce housing, rather it will fund the acquisition of properties for land banking by the Developer. Additionally, land banking will not create hiring opportunities for citizens or small businesses residing in the vicinity of the project. Neighborhood ID 1108764: Golden Gate City • Tier One — Census Tract 0104.10 Location flescription • Tier Two — Census Tract 0494.99 0104.19.0104.20 . Tier Three — Census Tract 0104.11 Neighborhood ID 3981140: East Naples Bayshore Gateway CRA Tier One — Census Tract 0107.01 Source of Funding Dollar Amount NSP3 5388.418 $ Total Sudget for Activity $388,418 Pr�rfnrmanta "Mo crreae Acquire approximately five (5) seven (7)land bank properties, as funding March 1, 2011 February 28, 2014 Responsible Name Collier County Department of Housing, Organization Human, and Veteran Services NSP3 Action Plan Collier County, Florida Page 14 Packet Page -1810- 2/12/2013 16.D.3. general administration and planning activities. National Objective N/A — Administration Activity Description This activity will fund the cost of administering the NSP3. Location Description N/A - Administration Source of Funding DollarAmount _ NSP3 $388,415.00 Total Budget for Activity $388,415.00 Performance - Measures N/A — Administration Projected5tart Date March 1, 2011 Projected End Date February 28, 2014 Name Collier County Department of Housing, Human, and Veteran Services Responsible Location 3339 Tamiami Trail E., Suite 211, Organization Naples, Florida 34112 Administrator Contact Info 239 -252 -4663 kimberleygrant @colliergov.net 8. Certifications Certifications for State and Entitlement Communities (1) Affirmatively furthering fair housing. The jurisdiction certifies that it will affirmatively further fair housing, which means that it will conduct an analysis to identify impediments to fair housing choice NSP3 Action Plan Collier County, Florida Page 15 Packet Page -1811- Location 3339 Tamiami Trail E., Suite 211, Naples, Florida 34112 Administrator Contact Info 239- 252 -4663 kimberleygrant @colliergov.net general administration and planning activities. National Objective N/A — Administration Activity Description This activity will fund the cost of administering the NSP3. Location Description N/A - Administration Source of Funding DollarAmount _ NSP3 $388,415.00 Total Budget for Activity $388,415.00 Performance - Measures N/A — Administration Projected5tart Date March 1, 2011 Projected End Date February 28, 2014 Name Collier County Department of Housing, Human, and Veteran Services Responsible Location 3339 Tamiami Trail E., Suite 211, Organization Naples, Florida 34112 Administrator Contact Info 239 -252 -4663 kimberleygrant @colliergov.net 8. Certifications Certifications for State and Entitlement Communities (1) Affirmatively furthering fair housing. The jurisdiction certifies that it will affirmatively further fair housing, which means that it will conduct an analysis to identify impediments to fair housing choice NSP3 Action Plan Collier County, Florida Page 15 Packet Page -1811- 2/12/2013 16.D.3. within the jurisdiction, take appropriate actions to overcome the effects of any impediments identified through that analysis, and maintain records reflecting the analysis and actions in this regard. (2) Anti - displacement and relocation plan. The applicant certifies that it has in effect and is following a residential anti - displacement and relocation assistance plan. (3) Anti - lobbying. The jurisdiction must submit a certification with regard to compliance with restrictions on lobbying required by 24 CFR part 87, together with disclosure forms, if required by that part. (4) Authority of jurisdiction. The jurisdiction certifies that the consolidated plan or abbreviated plan, as applicable, is authorized under state and local law (as applicable) and that the jurisdiction possesses the legal authority to carry out the programs for which it is seeking funding, in accordance with applicable HUD regulations and other program requirements. (5) Consistency with plan. The jurisdiction certifies that the housing activities to be undertaken with NSP funds are consistent with its consolidated plan or abbreviated plan, as applicable. (6) Acquisition and relocation. The jurisdiction certifies that it will comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (42 U.S.C. 4601), and implementing regulations at 49 CFR part 24, except as those provisions are modified by the notice for the NSP program published by HUD. (7) Section 3. The jurisdiction certifies that it will comply with section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u), and implementing regulations at 24 CFR part 135. (8) Citizen participation. The jurisdiction certifies that it is in full compliance and following a detailed citizen participation plan that satisfies the requirements of Sections 24 CFR 91.105 or 91.115, as modified by NSP requirements. (9) Following a plan. The jurisdiction certifies it is following a current consolidated plan (or Comprehensive Housing Affordability Strategy) that has been approved by HUD. (Only States and entitlement jurisdictions use this certification.) (10) Use of funds. The jurisdiction certifies that it will comply with the Dodd -Frank Wall Street Reform and Consumer Protection Act and Title XII of Division A of the American Recovery and Reinvestment Act of 2009 by spending 50 percent of its grant funds within 2 years, and spending 100 percent within 3 years, of receipt of the grant. (11) The jurisdiction certifies: a. that all of the NSP funds made available to it will be used with respect to individuals and families whose incomes do not exceed 120 percent of area median income; and b. The jurisdiction will not attempt to recover any capital costs of public improvements assisted with CDBG funds, including Section 108 loan guaranteed funds, by assessing any amount against properties owned and occupied by persons of low- and moderate - income, including any fee charged or assessment made as a condition of obtaining access to such public improvements. However, if NSP funds are used to pay the proportion of a fee or assessment attributable to the capital costs of public improvements (assisted in part with NSP funds) financed from other NSP3 Action Plan Collier County, Florida Packet Page -1812- Page 16 2/12/2013 16.D.3. revenue sources, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG funds. In addition, with respect to properties owned and occupied by moderate - income (but not low- income) families, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than NSP funds if the jurisdiction certifies that it lacks NSP or CDBG funds to cover the assessment. (12) Excessive force. The jurisdiction certifies that it has adopted and is enforcing: a. A policy prohibiting the use of excessive force bylaw enforcement agencies within its jurisdiction against any individuals engaged in nonviolent civil rights demonstrations; and b. A policy of enforcing applicable state and local laws against physically barring entrance to, or exit from, a facility or location that is the subject of such nonviolent civil rights demonstrations within its jurisdiction. (13) Compliance with anti - discrimination laws. The jurisdiction certifies that the NSP grant will be conducted and administered in conformity with Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d), the Fair Housing Act (42 U.S.C. 3601 - 3619), and implementing regulations. (14) Compliance with lead -based paint procedures. The jurisdiction certifies that its activities concerning lead -based paint will comply with the requirements of part 35, subparts A, B, J, K, and R of this title. (15) Compliance with laws. The jurisdiction certifies that it will comply with applicable laws. (16) Vicinity hiring. The jurisdiction certifies that it will, to the maximum extent feasible, provide for hiring of employees that reside in the vicinity of NSP3 funded projects or contract with small businesses that are owned and operated by persons residing in the vicinity of NSP3 projects. (17) Development of affordable rental housing. The jurisdiction certifies that it will be abide by the procedures described in its NSP3 Abbreviated Plan to create preferences for the development of affordable rental housing for properties assisted with NSP3 funds. Signature /Authorized Official Chairman Title NSP3 Action Plan Collier County, Florida Packet Page -1813- Date Page 17 2/12/2013 16.D.3. Appendix: NSP3 Action Plan Contents Checklist The checklist below is an optional tool for NSP3 grantees to help to ensure that all required elements of the NSP3 Substantial Amendment or the Abbreviated Plan are submitted to HUD. This checklist only includes the minimum required elements that must be included in the NSP3 Action Plan and grantees may want to add additional details. This document must be protected, as described above, in order to use the checkboxes in this checklist. 1. NSP3 Grantee Information Did you include the Program Administrator's name, address, phone, and email address? 2. Areas of Greatest Need Does the narrative description describe how funds will give priority emphasis to areas of greatest need? ❑ Does the narrative description specifically address how the funds will give priority emphasis to those areas: ❑ • With the highest percentage of home foreclosures? • With the highest percentage of homes financed by subprime mortgage related loan ?; and ❑ • Identified by the grantee as likely to face a significant rise in ❑ the rate of home foreclosures? Did you create the area of greatest needs map at htto:/ /www.huduser.org /NSP /NSP3.htmi? ❑ Did you include the map as an attachment to your Action Plan? ❑ ONtYApplicable for States: Did you include the needs of all entitlement communities in the State? ❑ 3. Definitions and Descriptions Are the following definitions and topics included in your substantial amendment ?: • Blighted structure in context of state or local law, 1 ❑ Packet Page -1814- 2/12/2013 16.D.3. • Affordable rents, ❑ • Ensuring long term affordability for all NSP funded housing El projects, • Applicable housing rehabilitation standards for NSP funded ❑ projects 4. Low - Income Targeting 5. Acquisition & Relocation For all acquisitions that will result in displacement did you specify: 1 • The planned activity, �El • The number of units that will result in displacement, ❑ • The manner in which the grantee will comply with URA for those residents? ❑ 6. Public Comment 7. NSP Information by Activity Packet Page -1815- 0 Correlated eligible CDBG activity or activities? • How the activity will address local market conditions? • Duration or term of assistance? • If the activity produces housing, how the design of the activity will ensure continued affordability? • Procedures used to create affordable rental housing preferences? • Amount of funds budgeted for the activity? • Expected start and end dates of the activity? 8. Certifications Did you sign and submit the certification form applicable to your iurisdiction? 9. Additional Documentation Packet Page -1816- 2/12/2013 16.D.3. 2/12/2013 16.D.3. AMENDMENT NO.2 TO AGREEMENT FOR THE NEIGHBORHOOD STABILIZATION PROGRAM 3 CFDA: 14.218 DEVELOPER AGREEMENT BETWEEN COLLIER COUNTY AND HABITAT FOR HUMANITY OF COLLIER COUNTY, INC. (NSP -3) THIS AMENDMENT is made and entered into on this day of 2013, by and between Collier County, a political subdivision of the State of Florida, having its principal office at 3299 Tamiami Trail East, Naples, Florida 34112 (hereinafter called the "GRANTEE "), and Habitat for Humanity of Collier County, Inc., a private not - for - profit corporation, existing under the laws of the State of Florida, having its principal office at 11145 Tamiami Trail East, Naples, Florida 34113 (hereinafter called the "DEVELOPER ") to undertake the Neighborhood Stabilization Program ("NSP - 3") as approved by the Collier County Board of County Commissioners. Statement of Understanding RE: Neighborhood Stabilization Program 3 B- 11UN -12 -0003 In order to continue the services provided for in the original Agreement document referenced above,,.,-,-, the Developer agrees to amend the Agreement as follows: Words CIE Through are deleted; Words Underlined are added: (Dollar amounts have original underlines) WITNES SETH: 11. Terms and Conditions of the Funding B. Use of Funds - NSP -3 funds obligated under this agreement may be used as follows: 2. Eligible Activities - Funds may be used for the NSP -3 eligible activities that are checked below. The number of properties listed is a nah-dmu gaal and is not intended to provide a limit on the number of properties that may be acquired through this Agreement, as funding permits: ® Acquisition 30 2-7 abandoned or foreclosed single €any properties ❑ Rehabilitation/ reconstruction # acquired abandoned or foreclosed ❑ New construction # vacant properties Packet Page -1817- N Land Bank Demolition 5 vacant properties As needed and an roved by the Coun 2/12/2013 16.D.3. 3. Eligible Properties - Properties must meet the following conditions to be considered eligible under this Agreement: d. Must otherwise be in suitable locations for marketing and resale to low -, and moderate -, and middle income homebuyers. V. Disbursement of Funds IN WITNESS WHEREOF, the Grantee and the Developer, have each, respectively, by an authorized person or agent, hereunder set their hands and seals on the date and year first above written. 1�k7"TEST: BOARD OF COUNTY COMMISSIONERS Dwight E. Brock, Clerk of Courts COLLIER COUNTY, FLORIDA By: By: Dated: Georgia A. Hiller, Esq. (SEAL) Chairwoman First Witness fiType /print witness nameT Second Witness Habitat for Humanity of Collier County; Inc_.. A Florida not -for -profit corporation Nick J. Kouloheras Chief Executive Officer "Type /print witness names Approved as to form and legal sufficiency: Jennifer B. White Assistant County Attorney` Packet Page -1818-