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Agenda 07/09/2013 Item #16D1 7/9/2013 16.0.1. EXECUTIVE SUMMARY Recommendation to approve an amendment to the Developer Agreements with Habitat for Humanity of Collier County, Inc. for the Neighborhood Stabilization Program 3 (NSP3); approve an amendment to the NSP3 Action Plan to allow for the associated Developer Agreement change in order to assure 100% grant expenditure; and authorize a corresponding budget amendment. (Fiscal Impact$428,000). OBJECTIVE: To augment the implementation model to assure timely expenditure of$3,884,165 by March 2014 to further assist low to middle income families within the community. CONSIDERATIONS: On April 12, 2011, Agenda Item No. 10B, the Board of County Commissioners ("Board") approved a NSP3 agreement with the Department of Housing and Urban Development ("HUD") in which the County was awarded $3,884,165 to carry out the NSP 3 program. Of the total $3,884,165 award, Habitat for Humanity was awarded $3,495,749 to acquire property for the purpose of rehabilitation using private funds. Habitat is on track to expend the total of their grant award (which equals 90% of the total expenditure) by Fall 2013. The remaining funds were allocated to program administration. One programmatic compliance requirement is that an amount equal to 100%of the total grant award must be expended by March 11, 2014. As of June 20, 2013, a total of$2,677,360.99 had been expended. As the grant is currently structured the County will not be fully able to meet the 100% deadline next March as $388,416 has been reserved for administration to monitor the affordability period for the next 15 years. To date the County has drawn down $45,011.64 in administrative funds leaving the balance of $343,404.36 unexpended. The County may allocate the remaining administrative fund balance to programmatic activities; however the County would then not have funds to monitor the program long term for compliance. Therefore, staff has created an alternative to allow for full expenditure as well as preserve funding for future program operation. The essence of this alternative is to allow Habitat to purchase more homes to meet the 100% expenditure requirement, while Collier retains administrative funds to monitor and report on the program for the required remaining fifteen (15) years. This will be accomplished by Habitat returning $388,000 from sales proceeds from the sale of NSP3 properties to Collier County, which will be classified as program income upon receipt by the County. The County will then award the $388,000 that has now been classified as program income to Habitat to acquire an additional three (3) to four (4) properties, thereby fully expending the entire grant amount. Per HUD rules total expenditures are equal to grant and program income expenditures. This allows the County to retain the administrative funds for on-going requirements. Also, Habitat has agreed to sell these additional properties to individuals whose income is 80-120%of area median income. As the agreement between the County and Habitat for Humanity currently stands, Habitat is allowed to keep the NSP3 sales proceeds to continue to perform NSP like activities. In order to implement this proposed change the County will need to modify the NSP3 Action Plan and the corresponding NSP3 Developer agreement with Habitat for Humanity. The changes are to (1) increase the number of homes Habitat will sell and the corresponding total agreement amount, (2) allow for the $388,000 in program income to be returned to the County and subsequently be awarded, (3) provide for a developer fee for the additional homes (to be paid from available remaining NSP1 funds in the amount of$40,000), and (4) amend the Action Plan to mirror the developer agreement outlining the new model and increase in the 25% set aside category. The Action Plan proposed changes have been advertised, as required, and the Packet Page-897- 7/9/2013 16.0.1. public comment period ends on July 9, 2013. As of publication of this agenda, no public comments have been received. If any are received, they will be brought forth at the July 9th meeting accordingly. The following table outlines the changes. Original Award Amended Award Difference Administration Maximum Cap(10%)-Collier $ 388,416 $ 388,416 $0 Program(Developer Agreement) Low Income Set Aside -50%AMI $ 971,042 $ 1,078,042 $ 107,000 51%-80%AMI $ 1,504,707 $ 1,397,707 $ (107,000) 81%- 120%AMI $ 750,000 $ 1,138,000 $ 388.000 Developer Fees $ 270,000 $ 310,000 $ 40,000 $ 3.495,749 $ 3,923,749 $ 428,000 TOTAL NSP ADMIN EXPENSES S 3,884,165 $ 4,312,165 $ 428,000 Revenue Sources HUD Grant Award-NSP3 $ 3,884,165 $ 3,884,165 $0 Program Income Developer NSP3 Property Sales $ 388,000 $ 388,000 NSP1 Program Income $ 40,000 $ 40.000 TOTAL NSP3 REVENUES $ 3,884,165 $ 4,312,165 $ 428,000 This model has been approved by HUD Technical Assistance, and has been reviewed verbally with the HUD National NSP Director, who noted no concerns. Implementation of this model in July 2013 will allow the County to retain its administrative dollars set aside for program administration and monitoring for future years while meeting HUD's 100%expenditure deadline of March 11, 2014. FISCAL IMPACT:This action will require a budget amendment in the amount of 5388.000 to recognize the one time remittance of NSP3 program income to Human Services Grant Fund 705, Project 33150. NSP1 funds in the amount of $40,000 are available within Human Services Grant Fund 121, Project 33050 for the added associated developer fees. LEGAL CONSIDERATIONS: Staff informed me that the proposed approach is acceptable to the County's NSP Technical Assistance provider. HUD Washington DC also finds this approach acceptable and has put its concurrence in writing. 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-898- 7/9/2013 16.D.1. RECOMMENDATION: To approve each document and authorize the Chairwoman to: • Sign an amendment to the NSP3 Developer Agreement that: o Requires Habitat to return$388,000 from the proceeds from sale of NSP3 property o Awards $388,000 in program income generated through returned sales proceeds to Habitat o Awards up to $40,000 from NSP1 to pay for associated developer fees • Approve an amendment to the NSP3 Action Plan o Adjustment in the low-income 25% set-aside(page 9) o Outlining the new model elements (page 12) • Approve the necessary budget amendment. Prepared By: Geoffrey Magon, Grants Coordinator,Housing,Human &Veteran Services Packet Page-899- 7/9/2013 16.D.1 . COLLIER COUNTY Board of County Commissioners Item Number: 16.16.D.16.D.1. Item Summary: Recommendation to approve an amendment to the Developer Agreements with Habitat for Humanity of Collier County, Inc.for the Neighborhood Stabilization Program 3 (NSP3); approve an amendment to the NSP3 Action Plan to allow for the associated Developer Agreement change in order to assure 100%grant expenditure; and authorize a corresponding budget amendment. (Fiscal Impact$428,000). Meeting Date: 7/9/2013 Prepared By Name: MagonGeoffrey Title: Grants Coordinator 6/14/2013 11:58:17 AM Submitted by Title: Grants Coordinator Name: MagonGeoffrey 6/14/2013 11:58:20 AM Approved By Name: SonntagKristi Date: 6/19/2013 6:45:52 PM Name: AlonsoHailey Title: Operations Analyst,Public Service Division Date: 6/20/2013 10:10:33 AM Name: SonntagKristi Date: 6/24/2013 10:52:59 AM Name: Joshua Thomas Title: Grants Support Specialist, Date: 6/24/2013 2:32:41 PM ooteik Packet Page-900- 7/9/2013 16.D.1. Name: CarnellSteve Title: Director-Purchasing/General Services,Purchasing Date: 6/25/2013 11:27:57 AM Name: BelpedioJennifer Title: Assistant County Attorney,County Attorney Date: 6/25/2013 4:12:16 PM Name: FinnEd Title: Senior Budget Analyst, OMB Date: 6/26/2013 4:20:11 PM Name: KlatzkowJeff Title: County Attorney Date: 7/1/2013 1:18:32 PM Name: StanleyTherese Title: Management/Budget Analyst, Senior,Office of Manage Date: 7/1/2013 1:22:45 PM Name: KlatzkowJeff Title: County Attorney Date: 7/1/2013 2:39:51 PM Name: OchsLeo Title: County Manager Date: 7/2/2013 9:34:33 AM Packet Page-901- 7/9/2013 16.D.1 . NEIGHBORHOOD STABILIZATION PROGRAM 3 AMENDMENT NO.3 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 July, 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"). Statement of Understanding RE: NEIGHBORHOOD STABILIZATION PROGRAM B-11UN-12-0003 In order to continue the services provided for in the original Agreement document referenced above,the parties agree to amend the Agreement as follows: Words Struck Through are deleted; Words Underlined are added: (Dollar amounts have original underlines) WITNESSETH: H. Terms and Conditions of the Funding A. Funding Amount — NSP-3 Funds in the amount of Three Million Four Hundred Ninety Five Thousand Seven Hundred Forty Nine and 00/100 Dollars ($3,495,749) are obligated for use in compliance with this agreement. The County will require Three Hundred Eighty-Eight Thousand and 00/100 Dollars ($388,000) of the original allocation to be returned to the County by Habitat for Humanity from the proceeds of sale of NSP3 properties. The County will award the program income generated from the return of sales proceeds in the amount of Three Hundred Eighty-Eight Thousand and 00/100 Dollars ($388.000) to Habitat for Humanity to continue to carry out the NSP3 program as required by this agreement. In addition up to Forty Thousand and 00/100 Dollars ($40,000) are obligated from NSP1 for the purpose of paying developer fees associated with this amendment, as reflected in the budget in Exhibit B. 2. Approved budget — The approved budget is attached to this agreement as Exhibit B. It is understood and agreed that funds will be used according to the approved budget. It is understood and agreed that funds will be used according to the approved budget (Exhibit B). Developer has the authority to reallocate $25,000 per income category, but shall not expend less than the Low Income Set Aside allocation of $971,042 $1,078,042. Should the Developer determine that the reallocation is necessary, a prior notification and written approval shall 0 Packet Page-902- 7/9/2013 16.D.1 . be duly signed by the Developer and the Director of HHVS. Reallocations above $25,000 between income categories will require prior Grantee approval. E. Sale to Buyers — All units acquired under this agreement shall be sold to eligible buyers in accordance with the provisions of this section. Eligible Buyers — Eligible homebuyers must be determined to be income-eligible in compliance with the limits and funding allocations checked below. It is understood and agreed that funds will be used according to the approved budget (Exhibit B). Developer has the authority to reallocate $25,000 per income category, but shall not expend less than the Low Income Set Aside allocation of $971,042 $1,078,042. Should the Developer determine that the reallocation is necessary, a prior notification and written approval shall be duly signed by the Developer and the Director of HHVS. Reallocations above $25,000 between income categories will require prior Grantee approval. 1. • Middle Income—81%to 120%of Area Median $750,000 Income $1,078,042 ® Moderate Income—51%to 80% of Area Median $1,501,707 Income $1,397,707 • Low Income—less than 50% of Area Median $971.012 Income $1,138,000 * * * ® Acquisition 34 38 abandoned or foreclosed single- family properties ❑ Rehabilitation/reconstruction # acquired abandoned or foreclosed New construction # vacant properties ❑ Land Banking 5 vacant properties Demolition As needed and approved by the County. V. Disbursement of Funds A. Project expenses (excluding developer fee) shall be paid based on vouchers for actual expenses incurred or paid. All such expenses shall be in conformance to the approved project budget. It is understood and agreed that funds will be used according to the approved budget(Exhibit B). Developer has the authority to reallocate$25,000 per income category, but shall not expend less than the Low Income Set Aside allocation of$971,042$1,078,042. Should the Developer determine that the reallocation is necessary, a prior notification and written approval shall be duly signed by the Developer and the Director of HHVS. Reallocations above $25,000 —`egories will require prior Grantee Packet Page-903- `..-' 7/9/2013 16.D.1 . approval. W 401k, I. The DEVELOPER shall retain any net proceeds of sales, after the payment of all closing costs and approved developer fee, under this contract, and shall comply with the following(as checked): The DEVELOPER may reuse such net proceeds of sale for NSP-3-eligible activities.. The DEVELOPER shall return the net proceeds of each sale to the GRANTEE at each closing. The DEVELOPER shall return $388,000, upon the sale of NSP3 properties to the GRANTEE no later than December 31, 2013. Proceeds to be returned from the sale of property are upon receipt by the County to be considered Program Income. The Program Income shall be returned into the NSP 3 program, at which point the DEVELOPER shall be awarded the entirety of the program income for acquisition of additional NSP3 property. EXHIBIT A. Project Description A. GENERAL Developer will be provided NSP-3 funds in the amount of Three Million Four Hundred Ninety Five Thousand Seven Hundred Forty Nine and 00/100 Dollars ($3,495,749). Such funds will be used to acquire and land bank eligible properties in the Grantees eligible target areas and to pay associated developer fees. The Developer shall be required to return to the County an amount of Three Hundred Eighty-Eight Thousand and 00/100 Dollars ($388,000) from the sale of NSP3 properties by December 31, 2013. Such proceeds from the sale of property by the Developer shall upon receipt by the County be considered Program Income. Proceeds received from the Developer will be returned back into Collier County's NSP3 program and be considered program income upon receipt. The Developer will be awarded the $388,000 in program income, for the purpose of acquiring additional properties for the NSP3 program. E. ELIGIBLE INCOME LEVELS OF BUYERS NSP-assisted property subject to the Agreement shall be used with respect to individuals and families whose income does not exceed 120 percent of area median income. However, not less than twenty-five (25) percent of the funds expended by Grantee in acquiring the properties subject to this Agreement shall be used to house individuals or families whose income do not exceed 50 percent of the area median income ("LH25 Requirement"). Packet Page-904- C:./ 7/9/2013 16.D.1. To ensure compliance with the NSP LH25 Requirement, DEVELOPER shall ensure that One Million Seventy-Eight Thousand Forty Two and 00/100 Dollars (1.078,042) Nine - . . . -- .e e e .; .. • ,!' ) be expended to comply with the LH25 Requirement. EXHIBIT A-2. Disbursement GENERAL Developer shall invest its own funds to complete the rehabilitation or development of the properties associated with this Agreement thereby assuming risk associated with the project. To compensate Developer for such risk, and for providing NSP-related goods and services, such as, but not necessarily limited to, residential rehabilitation, eligible buyer identification, and final disposition,Developer shall be paid a developer fee. In addition to payment of developer fees, funding under this Agreement may be used for the acquisition of eligible properties. AMOUNT Grantee shall pay Developer a Ten Thousand and 00/100 Dollars ($10,000) developer fee for each of the properties acquired through this Agreement. The maximum combined developer fee paid by Grantee to Developer through this Agreement shall be Two Hundred Seventy Thousand and 00/100 Dollars ($270,000) from NSP3 funds. and Forty Thousand ($40,000) from NSP1 funds for a total of Three Hundred Ten Thousand and 00/100 Dollars ($310.000),; this-these amounts represents a cumulative of developer fees paid for each of the properties acquired through this Agreement. Grantee shall reimburse Developer a maximum One Hundred Fifty Thousand and 00/100 Dollars ($1 50,000) for each property acquired through this Agreement, unless a higher .__ _ _ - , b . -; however, such reimbursed amount may not exceed the actual cost of acquisition. The maximum combined reimbursement paid by Grantee to Developer through this Agreement shall be Three Million Two Hundred Twenty Five Thousand Seven Hundred Forty Nine and 00/100 Dollars ($3,225,749); however the Developer shall be awarded an additional Three Hundred Eighty-Eight Thousand and 00/100 Dollars ($388,000) from the program income generated by the NSP3 grant. This awarded amount is generated from the proceeds of the sale of NSP3 property having been originally been returned to the County. The awarded funds will be used to fund additional reimbursement to the Developer for the actual cost of acquisition. This amount represents a cumulative of reimbursements paid for each of the properties acquired through this agreement. EXHIBIT B. Budget GENERAL Developer will be provided NSP-3 funding by the Grantee for the purpose of acquiring eligible properties for final disposition to NSP-eligible persons or families, including payment of developer fees. Packet Page-905- 7/9/2013 16.D.1 . BUDGET Grantee shall pay Developer a Ten Thousand and 00/100 Dollars ($10,000) developer fee for each of the properties acquired through this Agreement. The maximum combined developer fee paid by Grantee to Developer through this Agreement shall be Two Hundred Seventy thousand 00/100 Dollars (V70,000) Three Hundred Ten Thousand 00/100 Dollars ($310,000); this amount represents a cumulative of developer fees paid for each of the properties acquired through this Agreement. Grantee shall reimburse Developer a maximum One Hundred Fifty Thousand and 00/100 Dollars ($150,000) for each property acquired through this Agreement, unless a higher amount is approved in writing by Grantee; however, such reimbursed amount may not exceed the actual cost of acquisition. The maximum combined reimbursement paid by Grantee to Developer through this Agreement shall be Three Million Two Hundred Twenty Five Thousand Seven Hundred Forty Nine and 00/100 Dollars ($3,225,749); however the Developer shall be awarded an additional Three Hundred Eighty-Eight Thousand and 00/100 Dollars ($388,000) from the program income generated by the NSP3 grant. This awarded amount is generated from the proceeds of the sale of NSP3 property having been originally been returned to the County. The awarded funds will be used to fund additional reimbursement to the Developer for the actual cost of acquisition. This amount represents a cumulative of reimbursements paid for each of the properties acquired through this agreement. Line Item Amount Original Award(Acquisition&Developer Fee) $3,495,749.00 NSP3 Program Income awarded (Generated from proceeds $388.000.00 returned to the County) Additional Develo ser Fee's for NSP3 activities said by NSP1 $40,000.00 Final Total Awarded to Habitat $3 923 749.00 INCOME TARGETING Funds associated with this Agreement shall be expended spend within the following income targets. Line Item Amount County Administration $388,416 Habitat for Humanity Developer Fee $270,000 Additional HFH Developer Fee $40,000 Low-Income Set Aside (50%AMI) Q442 $1,078,042 51% AMI—80%AMI $1,501,707 $1,397,707 81% AMI— 120%AMI $750,000 81%AMI — 120%AMI (PI Generated) $388,000 TOTAL $4,312,165 C� Packet Page-906- 7/9/2013 16.D.1. It is understood and agreed that funds will be used according to the approved budget. Developer has the authority to reallocate $25,000 per income category, but shall not expend less than the Low Income Set Aside allocation of $L078,042. Should the Developer determine that the reallocation is necessary, a prior notification and written approval shall be duly signed by the Developer and the Director of HHVS. Reallocations above $25,000 between income categories will require prior Grantee approval. * * 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: Georgia A. Hiller, Esq. Chairwoman. (SEAL) 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 .` Packet Page-907- (1.t"0% 7/9/2013 16.D.1. 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 Page 1 Packet Page-908- `',•; : 1 7/9/2013 16.D.1 . 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 Page 2 Packet Page-909- 7/9/2013 16.D.1 . income range and housing type (home ownership versus rental)and may prove a valuable tool in the Amok 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 Aftlikk 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 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 other NSP3 Action Plan Collier County,Florida Page 3 Packet Page-910- 7/9/2013 16.D.1. 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 City(HUD Neighborhood ID 1108764) • Tier One—Census Tract 0104.10 o GeolD 12021923012630001041001 o GeolD 12021923012630001041002 o GeolD 120219230126300010410U3 • Tier Two-Census Tract 104.19 o GeolD 1202101419 • Tier Two-Census Tract 104.20 o GeolD 1202101420 • Tier Three—Census Tract 0104.11 o GeoID 120219230126300010411U1 o GeolD 120219230126300010411U2 o GeolD 120219230126300010411U3 o GeolD 120219230126300010411R3 o GeolD 120219230126300010411R1 Target Area Two—East Naples Bayshore Gateway CRA(HUD Neighborhood ID 3981140) • Tier One—Census Tract 0107.01 o GeolD 120219230199999010701U4 o GeolD 120219230199999010701U1 o GeoID 120219230199999010701U2 o GeolD 120219230199999010701U3 o GeoID 120219230199999010701R2 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. 3. Definitions and Descriptions Definitions Term , Definition .5P3 Action Plan Collier County,Florida Page 4 Packet Page-911- &C6 7/9/2013 16.D.1. Amok 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; I) 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 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 NSP3 Action Plan Collier County,Florida Page 5 Packet Page-912- 7/9/2013 16.D.1. 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. Descriptions Term Definition Long-Term Affordability 24 CFR 92.252(a), (c),(e),and (f), and 92.254 Rental: Long-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 I 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 refinancing New construction or acquisition of newly 20 constructed housing.......................................... Subsequent rents during the affordability period will be calculated and applied in conformance with 24 CFR 92.252(f). ,P33 Action Plan Collier County,Florida Page 6 Packet Page -913- � . • 7/9/2013 16.D.1. Homeownership: Long-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 Minimum period of affordability in years per-unit 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(down payment 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 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 NSP3 Action Plan Collier County,Florida Page 7 Packet Page -914- 7/9/2013 16.D.1. 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: i. 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. 4. Low-Income Targeting Lova—lr ore Set- :sid =Amours: .SP3 Action Plan Collier County,Florida Page 8 Packet Page-915- 7/9/2013 16.D.1 . 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 sum of the County's appropriation and program income, rounded up to the nearest thousand. • -. - - . . - _ • . , e - Total low-income set-aside percentage(must be no less than 25 percent): 25.00% Total funds set aside for low-income individuals =$1.078,042 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. doew 5. 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., 5 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., <_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., 5 120%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 commencement date of March 1, 2011 and completion date NSP3 Action Plan Collier County,Florida Page 9 Packet Page-916- (S) 7/9/2013 16.D.1 . 2014. Activity 1 LMMH/LH25 —25 units Activity 2 LMMH —5 units The number of dwelling units reasonably expected to be made available for 7 units households whose income does not exceed 50 percent of area median income. 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. Summar; o Public Comments Received. No public comments were received. 7. NSP Information by Activity Activity Number 1 SP3 Action Plan Collier County,Florida Page 10 Packet Page-917- 7/9/2013 16.D.1 . Activity Name Acquisition and Rehabilitation (LMMH) Select all that apply: _ Eligible Use A: Financing Mechanisms Uses ® Eligible Use B:Acquisition and Rehabilitation El Eligible Use C: Land Banking ® 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 modified 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 120 percent area median income, adjusted for household size. 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 Afew 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 Activity Description 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 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: NSP3 Action Plan Collier County,Florida Page 11 Packet Page-918- �, 7/9/2013 16.D.1 . • Range of interest rates:0 percent to 5 percent nr, sir �, � r TM .� 3 . • Term of assistance:5 years to 30 years +a 41�'r ,4 i • Tenure of beneficiaries: homeowners ri ta�rw '•t � c 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. � :sib t4fj i I ea h ' 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 : r tl Humanity to reduce the heavy burden of saving a sizable down payment. 15 Another factor affecting residents within the target areas is reduced ,1"' II employment opportunities. Collier County has long relied on industries fueled �. r )fi E r.0En' q EA IJ� s 'J ��. by population growth to provide employment opportunities for residents. f � .0 4l°,. 1`'' a° 6 1'JI• According to the Collier County Economic Development Council's 2009 l; IM . '`I ; Market Facts report,construction,retail trade and accommodations,and food '% L F 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. ~ h r This activity will produce housing that is intended to remain affordable. In '" ry t y i>✓a;` compliance with NSP3 regulations,Collier County has adopted as a safe Igii I` 'i° ° xa ry harbor the affordability standards of the HOME program at 24 CFR 92.252(a), = r, S (c),(e),and(f),and 92.254. .k The County will require that the Developer return$388,000 to the County from the proceeds of sale of NSP3 properties.The$388,000 will upon receipt by the County be classified as program income.The$388,000 generated in program income will be awarded to Habitat for Humanity to continue to acquire and rehabilitate additional property in line with their NSP3 developer agreement with the County. 1 a The Developer will seek,to the maximum extent possible,to hire or cause to . ifilltiki.445Mlf.100:glai be hired employees who reside in the vicinity of NSP3 projects or contract 'I% 4:, '.I 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 : . `i each neighborhood identified within this document as being the areas of NSP3 Action Plan Collier County,Florida Page 12 V Packet Page-919 7/9/2013 16.D.1 . greatest need. The following are examples of activities that may be used to accomplish this initiative: • Outreach to local area residents and businesses; • Inclusion of Section 3 and other relevant language in all applicable contracts; • Advertising of economic opportunities to local area residents and businesses Neighborhood ID 1108764:Golden Gate City • Tier One—Census Tract 0104.10 • Tier Two—Census Tract 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 Budget NSP3 $3,107,332 Total Budget for Activity _ $3,107,332 Performance Measures Acquire and rehabilitate approximately twenty four(21)twenty-five(25) units amok of housing for LMMH and LH25, as funding permits. Projected Start 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 Activity Number 2 Activity Name Land Bank(LMMH) Select all that apply: _ Eligible Use A: Financing Mechanisms Eligible Use B:Acquisition and Rehabilitation Use Z Eligible Use C: Land Banking Eligible Use D: Demolition Eligible Use E: Redevelopment CDBG Activity or 24 CFR 570.201(a)Acquisition and (b) Disposition. HUD notes that any of the Activities activities listed above may include required homebuyer counseling as an activity delivery cost. NSP3 Action Plan Collier County,Florida Page 13 Packet Page-920- 7/9/2013 16.D.1. 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(4th 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 • Tier Two—Census Tract 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 Budget NSP3 $388,418 Total Budget for Activity $388,418 Performance Measures Acquire approximately five(5) land bank properties,as funding permits. Projected Start Date March 1, 2011 Projected End Date February 28,2014 Responsible Name Collier County Department of Housing, Organization Human,and Veteran Services Location 3339 Tamiami Trail E.,Suite 211, ..P3 Action Plan Collier County,Florida Page 14 Packet Page-921- c � 7/9/2013 16.D.1. Naples, Florida 34112 Administrator Contact Info 239-252-4663 kimberleygrant @colliergov.net Activity Number 3 Activity Name Administration Select all that apply: • Eligible Use A: Financing Mechanisms Use ® Eligible Use B:Acquisition and Rehabilitation ® Eligible Use C: Land Banking ® Eligible Use D: Demolition ® Eligible Use E: Redevelopment 24 CFR 570.205 and 206,as amended to provide an alternative that an CDBG Activity or amount of up to ten (10) percent of an NSP grant provided to a jurisdiction Activities and of up to ten (10) percent of program income earned may be used for 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 Ageok Source of Funding Dollar Amount Budget NSP3 $388,415.00 Total Budget for Activity $388,415.00 Performance Measures N/A—Administration Projected Start 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 kimberieygrant @colliergov.net 8. Certifications certifications:for State anti 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-922- Q 7/9/2013 16.D.1 . 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 NSF'funds)financed from other ASP3 Action Plan Collier County,Florida Page 16 Packet Page-923- 7/9/2013 16.D.1. 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 by law 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. Jaw (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 Date Georgia A. Hiller, Esq. Chairwoman ATTE S1 ; Approved as to form and legality Nb4IGHT E BROCKv CLERK Assii nt County Attornd' NSP3 Action Plan Collier County,Florida Page 17 Packet Page-924- 7/9/2013 16.D.1. 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 Yes 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? C • With the highest percentage of homes financed by subprime L 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 C http://www.huduser.org/NSF/NSP3.html? Did you include the map as an attachment to your Action Plan? C ONLY Applicable for States:Did you include the needs of all entitlement communities in the State? 3. Definitions and Descriptions : �. 'Yes Are the following definitions and topics included in your substantial amendment?: • Blighted structure in context of state or local law, C Packet Page-925- 7/9/2013 16.D.1. • Affordable rents, n • Ensuring long term affordability for all NSP funded housing projects, C • Applicable housing rehabilitation standards for NSP funded — projects 4. Low-Income Targeting Yes Did you identify the estimated amount of funds appropriated to provide housing that meets the low-income set aside target? Did you provide a summary describing how your jurisdiction will meet its low-income set aside goals? 5. Acquisition &Relocation Yes For all acquisitions that will result in displacement did you specify: r7 • The planned activity, C • 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 Did you provide your draft of the NSP3 substantial amendment for a minimum of 15 days for public comment? Did you include the public comments you received on the NSP3 substantial amendment in your plan? 7. NSP Information by Activity Check ail .„ -that apply Did you include a description of all eligible NSP3 activities you plan to C implement with your NSP3 award? For each eligible NSP3 activity you plan to implement did you include: r9://://:///y/(„:„.„ /7",74 Packet Page-926- ` 7/9/2013 16.D.1. • Eligible use or uses? • Correlated eligible CDBG activity or activities? • Associated national objective? j [ • How the activity will address local market conditions? i [ • Range of interest rates(if any)? — I � I • Duration or term of assistance? ❑ • Tenure of beneficiaries(e.g. rental or homeowner)? C • If the activity produces housing,how the design of the activity [ will ensure continued affordability? • How you will,to the maximum extent possible, provide for [ vicinity hiring? • Procedures used to create affordable rental housing preferences? • Areas of greatest need addressed by the activity or activities? [ • Amount of funds budgeted for the activity? [ • Appropriate performance measures for the activity(e.g.units of housing to be acquired,rehabilitated,or demolished for the Li income levels represented in DRGR)? • Expected start and end dates of the activity? • Name and location of the entity that will carry out the activity? (— 8. Certifications es Did you sign and submit the certification form applicable to your [ jurisdiction? 9. Additional Documentation .a. ..._ ., �,..., ,.,. , = .,.,,.� . ., Z Did you include a signed SF-424? [ Packet Page-927- 7/9/2013 16.D.1. EXHIBIT F COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS Multi-Lingual Listing of Department Employees Date: Voluntary Participation:Please include employees who are willing to assist a LEP client of Housing, Human,and Veteran Services who requires language assistance. Send this survey form to the Public Services Division, Attention:NAME,by DATE. Division/Department Name: Division/Department Contact: Employee's Employee's Name Contact Phone Language Can Speak? Can Read? Degree of No Yes or No Yes or No Fluency Packet Page-928- 7/9/2013 16.D.1 . EXHIBIT F LIMITED ENGLISH PROFICIENCY(LEP)QUESTIONNAIRE This questionnaire is to be completed by Housing, Human, and Veteran Services staff providing services to individuals with Limited English Proficiency. Please complete the questionnaire for each LEP individual served. Staff Member: Date: Name of LEP Individual(if known): 1. What is the primary language spoken by the LEP person?(e.g., Spanish, Creole, German,etc.) 2. Describe the type of service or services provided to this person. (e.g., housing assistance, prescription assistance, respite care,etc.) 3. Was the program service provided within the timeframe as the service is provided to non-LEP individuals?(Yes or No;if No, please indicate if service was due to need for LEP service) 4. What type of LEP services did you provide to this person? (e.g., oral interpretation in person or by phone,written translation,none,etc.) 5. Who provided to interpreter services? (e.g., bilingual staff, community volunteer, LEP person's family member,friend, etc.) 6. Was this person satisfied with the interpreter services provided? (Yes or No; if No, please explain) Packet Page -929- aca 7/9/2013 16.D.1 . • 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 County will require that the Developer return $388,000 to the County from the proceeds of sale of NSP3 properties.The$388,000 will upon receipt by the County be classified as program income.The $388,000 generated in program income will be awarded to Habitat for Humanity to continue to acquire and rehabilitate additional property in line with their NSP3 developer agreement with the County. 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 NSP3 Action Plan Collier County,Florida Page 12 Packet Page-930-