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Agenda 04/24/2018 Item #11A04/24/2018 EXECUTIVE SUMMARY Recommendation to authorize staff to continue implementation of the Community Housing Plan (CHP) by performing the following: (1) direct the County Attorney to advertise an amendment to Chapter 74 of the Collier County Code of Laws and Ordinances related to Impact Fee Deferrals; (2) approve a resolution to supercede Resolution No. 07-203 which established an Affordable- Workforce Housing Trust Fund and establish a new Local Housing Trust Fund; (3) direct staff to initiate the process to establish the creation of a Community Land Trust; (4) direct staff to initiate a nexus study to determine appropriate linkage fees on new development of various types as well as the maximum feasible fees development can support in light of existing fees and other factors; (5) direct staff to develop an affordable housing plan including marketing, public relations, and communications. (Total Fiscal impact: $245,000 over two (2) years) OBJECTIVE: To implement new and modified approaches to address Collier County’s housing affordability issues as recommended in the 2017 Collier County Community Housing Plan (CHP). CONSIDERATIONS: Collier County has a statutory obligation to provide for housing for its current and anticipated population, including those that are most vulnerable. Housing that is affordable is part of a community’s infrastructure and therefore impacts the entire community. First responders, health care professionals, teachers, and others have been historically priced out of the housing market. A vibrant and sustainable community needs to develop specific strategies to accommodate the housing needs of its citizens. In response to community concerns, the Board of County Commissioners (Board) commissioned the development of a CHP in March 2016 with a broad cross-section of stakeholders appointed in June 2016. In 2017, the Urban Land Institute (ULI) performed a panel review of the housing situation in Collier County. Among their conclusions is that Collier County needed to reframe its view of housing to better meet the needs of the 40% of the population (58,685 households) currently living in Collier County that are cost-burdened, spending more than 30% of their income on housing. This large segment of Collier County’s population is working and living here un-affordably. The community stakeholders presented the CHP to the Board on October 25, 2017. The plan includes approximately 30 specific recommendations including housing for seniors and those with special needs. The Board accepted the CHP and staff initiated an implementation schedule. The first set of actions was approved by the Board on February 27, 2018, Agenda Item 11A. This request is the second of the series of implementation actions to be presented to the Board. Specific recommendations include: A. Approval to direct the County Attorney to advertise an amendment to Chapter 74 of the Collier County Code of Laws and Ordinances related to Impact Fee Deferrals to encourage the development of affordable rental housing by allowing the BCC, on a case- by-case basis, to allow rental impact fee deferrals in excess of the annual allotment of 225 and to allow rental impact fee deferrals of greater than ten (10) years. The amendment will also extend the affordability term of participating rental developments from 15 to 30 years. There are no changes to the owner-occupied program. (Refer to Attachment A - Ordinance Amendment) B. Adoption of a resolution to supersede Resolution No. 07-203 and establish the Local Affordable Housing Trust Fund such that all revenue generated for affordable housing shall be deposited and all monies disbursed from the Fund. The resolution also specifies 11.A Packet Pg. 210 04/24/2018 what the funds will be allocated for, and outlines the roles and responsibilities for administration. (Refer to Attachment B - Housing Trust Fund Resolution) C. Direct staff to create a Community Land Trust in Collier as a legal mechanism for pursuing a partnership with a local nonprofit with the mission of ensuring housing opportunities remain affordable for perpetuity. D. Direct staff to initiate the process of engaging in a linkage fee nexus study to determine appropriate linkage fees on new development as well as the maximum feasible fees development can support in light of existing fees and other factors. Policy 1.9 of the Housing Element of the Collier County Comprehensive Plan specifically tasks the County, with the City of Naples, to explore the development of a fair share affordable housing ordinance that shall require commercial and residential developments to address the lack of affordable housing. This policy supports the primary goal and objective of this Housing Element, which is to provide new affordable housing units in order to meet the current and future housing needs of residents with very-low, low, moderate, and affordable workforce incomes, including households with special needs such as rural and farmworker housing in rural Collier County. E. Direct staff to initiate the process of developing a marketing, public relations, and communications plan to continue to educate the public on the issues of housing affordability in Collier County, as well as provide a one-stop shop for housing information and resources. Create an online, near-real-time updated Current Inventory of Affordable Housing Availability (purchase or rental) along with links to information & Resources, outline all available programs. Create an easy to find, one click “housing-focused” website. Develop a Marketing, PR & Communications Plan to continue to educate the community on who needs housing and is having trouble finding it; why we need to address the situation; what’s the impact of no action; and keep the public aware of efforts and impact. Conduct a survey to measure the current baseline understanding of affordable housing issues within the community. Begin a campaign to clarify the meaning of “affordable housing.” Educate residents and “change the narrative” to present affordable housing as a necessity and a shared public responsibility. Create PSA’s, short videos and social media and other vehicles to educate the public on housing affordability issues continually. FISCAL IMPACT: Funding is needed for various implementation elements. The linkage fee study is estimated at $65,000 and funds are available in the current year budgeted in Fund 116, cost center 138711 and Fund 001, cost center 115930. The Community Housing Land Trust startup funding is estimated at $100,000, and the Marketing, PR, and Communications plan is estimated at $80,000. If approved, funding for these two elements will be included in the FY 18/19 budget for approval at that time. GROWTH MANAGEMENT IMPACT: Approval of these policies, strategies, ordinances, and amendments will assist Collier County in meeting the goals of the Housing Element of the Comprehensive Plan. LEGAL CONSIDERATIONS: For those implementation actions that are Board approved, the County Attorney’s Office will work with staff to ensure that the resolutions, amendments to resolutions, ordinances are approved for form and legality. Accordingly, this Item is approved to form and legality and requires a majority vote for Board approval. - 11.A Packet Pg. 211 04/24/2018 RECOMMENDATION: To authorize staff to continue implementation of the Community Housing Plan (CHP) by performing the following: (1) direct the County Attorney to advertise an amendment to Chapter 74 of the Collier County Code of Laws and Ordinances related to Impact Fee Deferrals; (2) approve a resolution to supercede Resolution No. 07-203 which established an Affordable-Workforce Housing Trust Fund and establish a new Local Housing Trust Fund; (3) direct staff to initiate the process to establish the creation of a Community Land Trust; (4) direct staff to initiate a nexus study to determine appropriate linkage fees on new development of various types, as well as the maximum feasible fees development, can support in light of existing fees and other factors; (5) direct staff to develop an affordable housing plan including marketing, public relations, and communications. (Total Fiscal impact: $245,000 over two (2) years) Prepared By: Cormac Giblin, AICP - Grants and Housing Development Manager; Community and Human Services Division ATTACHMENT(S) 1. CAO FULL Ordinance (PDF) 2. CAO Stamped Resolution AH Trust Fund 2018 (PDF) 3. Housing Plan- Step 2 - BCC Public Presentation - 040418-1336 (PDF) 11.A Packet Pg. 212 04/24/2018 COLLIER COUNTY Board of County Commissioners Item Number: 11.A Doc ID: 5343 Item Summary: ***This item to be heard immediately following Item 9C***This Item was continued from the April 10, 2018 BCC Meeting*** Recommendation to authorize staff to continue implementation of the Community Housing Plan (CHP) by performing the following: (1) direct the County Attorney to advertise an amendment to Chapter 74 of the Collier County Code of Laws and Ordinances related to Impact Fee Deferrals; (2) approve a resolution to supercede Resolution No. 07-203 which established an Affordable-Workforce Housing Trust Fund and establish a new Local Housing Trust Fund; (3) direct staff to initiate the process to establish the creation of a Community Land Trust; (4) direct staff to initiate a nexus study to determine appropriate linkage fees on new development of various types as well as the maximum feasible fees development can support in light of existing fees and other factors; (5) direct staff to develop an affordable housing plan including marketing, public relations, and communications. (Total Fiscal impact: $245,000 over two (2) years) (Cormac Giblin, Grants and Housing Development Manager; Community and Human Services Division) Meeting Date: 04/24/2018 Prepared by: Title: Manager - Technical Systems Operations – Administrative Services Department Name: Michael Cox 04/11/2018 10:26 AM Submitted by: Title: Division Director - Cmnty & Human Svc – Public Services Department Name: Kimberley Grant 04/11/2018 10:26 AM Approved By: Review: Community & Human Services Maggie Lopez Additional Reviewer Completed 04/12/2018 8:35 AM Community & Human Services Cormac Giblin Additional Reviewer Completed 04/12/2018 8:43 AM Public Services Department Kimberley Grant Additional Reviewer Completed 04/12/2018 9:36 AM Operations & Veteran Services Sean Callahan Additional Reviewer Completed 04/13/2018 9:22 AM Public Services Department Todd Henry Level 1 Division Reviewer Completed 04/13/2018 9:25 AM Public Services Department Steve Carnell Level 2 Division Administrator Review Completed 04/13/2018 1:42 PM County Attorney's Office Michael Cox Level 2 Attorney of Record Review Skipped 04/13/2018 2:09 PM Capital Project Planning, Impact Fees, and Program Management Michael Cox Additional Reviewer Skipped 04/13/2018 2:09 PM County Attorney's Office Michael Cox Level 3 County Attorney's Office Review Skipped 04/13/2018 2:10 PM Office of Management and Budget Michael Cox Level 3 OMB Gatekeeper Review Skipped 04/13/2018 2:10 PM County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 04/18/2018 8:11 PM 11.A Packet Pg. 213 04/24/2018 Board of County Commissioners MaryJo Brock Meeting Pending 04/24/2018 9:00 AM 11.A Packet Pg. 214 11.A.1 Packet Pg. 215 Attachment: CAO FULL Ordinance (5343 : Housing Plan Implementation Phase II) 11.A.1 Packet Pg. 216 Attachment: CAO FULL Ordinance (5343 : Housing Plan Implementation Phase II) 11.A.1 Packet Pg. 217 Attachment: CAO FULL Ordinance (5343 : Housing Plan Implementation Phase II) 11.A.1 Packet Pg. 218 Attachment: CAO FULL Ordinance (5343 : Housing Plan Implementation Phase II) 11.A.1 Packet Pg. 219 Attachment: CAO FULL Ordinance (5343 : Housing Plan Implementation Phase II) 11.A.1 Packet Pg. 220 Attachment: CAO FULL Ordinance (5343 : Housing Plan Implementation Phase II) 11.A.1 Packet Pg. 221 Attachment: CAO FULL Ordinance (5343 : Housing Plan Implementation Phase II) 11.A.1 Packet Pg. 222 Attachment: CAO FULL Ordinance (5343 : Housing Plan Implementation Phase II) 11.A.1 Packet Pg. 223 Attachment: CAO FULL Ordinance (5343 : Housing Plan Implementation Phase II) 11.A.1 Packet Pg. 224 Attachment: CAO FULL Ordinance (5343 : Housing Plan Implementation Phase II) 11.A.1 Packet Pg. 225 Attachment: CAO FULL Ordinance (5343 : Housing Plan Implementation Phase II) 11.A.1 Packet Pg. 226 Attachment: CAO FULL Ordinance (5343 : Housing Plan Implementation Phase II) 11.A.1 Packet Pg. 227 Attachment: CAO FULL Ordinance (5343 : Housing Plan Implementation Phase II) 11.A.1 Packet Pg. 228 Attachment: CAO FULL Ordinance (5343 : Housing Plan Implementation Phase II) 11.A.1 Packet Pg. 229 Attachment: CAO FULL Ordinance (5343 : Housing Plan Implementation Phase II) 11.A.1 Packet Pg. 230 Attachment: CAO FULL Ordinance (5343 : Housing Plan Implementation Phase II) 11.A.1 Packet Pg. 231 Attachment: CAO FULL Ordinance (5343 : Housing Plan Implementation Phase II) 11.A.1 Packet Pg. 232 Attachment: CAO FULL Ordinance (5343 : Housing Plan Implementation Phase II) 11.A.2 Packet Pg. 233 Attachment: CAO Stamped Resolution AH Trust Fund 2018 (5343 : Housing Plan Implementation Phase II) 11.A.2 Packet Pg. 234 Attachment: CAO Stamped Resolution AH Trust Fund 2018 (5343 : Housing Plan Implementation Phase II) 11.A.2 Packet Pg. 235 Attachment: CAO Stamped Resolution AH Trust Fund 2018 (5343 : Housing Plan Implementation Phase II) 11.A.2 Packet Pg. 236 Attachment: CAO Stamped Resolution AH Trust Fund 2018 (5343 : Housing Plan Implementation Phase II) 11.A.2 Packet Pg. 237 Attachment: CAO Stamped Resolution AH Trust Fund 2018 (5343 : Housing Plan Implementation Phase II) 11.A.2 Packet Pg. 238 Attachment: CAO Stamped Resolution AH Trust Fund 2018 (5343 : Housing Plan Implementation Phase II) Collier County Community Housing Plan Implementation Step Two 4-10-18 Presentation: Board of County Commissioners 1 11.A.3 Packet Pg. 239 Attachment: Housing Plan- Step 2 - BCC Public Presentation - 040418-1336 (5343 : 2 11.A.3 Packet Pg. 240 Attachment: Housing Plan- Step 2 - BCC Public Presentation - 040418-1336 (5343 : Step Two Implementation Items: 1.Amendments to the Code of Laws and Ordinances related to Impact Fee Deferrals; 2.Supercede/Establish a new Local Housing Trust Fund; 3.Initiate the process to establish a Community Land Trust; 4.Initiate a nexus study to determine appropriate linkage fees; 5.Develop a housing that is affordable marketing, public relations, and communications plan. 3 11.A.3 Packet Pg. 241 Attachment: Housing Plan- Step 2 - BCC Public Presentation - 040418-1336 (5343 : Recommendation #1: Amendments to the Code of Laws and Ordinances related to Impact Fee Deferrals Owner-Occupied Housing Program Rental Housing Program 4 11.A.3 Packet Pg. 242 Attachment: Housing Plan- Step 2 - BCC Public Presentation - 040418-1336 (5343 : Impact Fee Deferral Program Existing Sophisticated compared to others in the State Rental or owner occupied for-sale units Removes upfront cost of Impact fees 5 Owner-Occupied For Sale Program Up to 120% of Median Income Based on De Minimis Amount (less than 3%) Approximately 90 homes per year Lien on home payable upon resale/refinance (with interest) Rental Program Up to 80% of Median Income (low income) Maximum of 225 Units per fiscal year Offers 10yr deferral of fees (security instrument held by Clerk) Remain affordable for 15yrs 11.A.3 Packet Pg. 243 Attachment: Housing Plan- Step 2 - BCC Public Presentation - 040418-1336 (5343 : Impact Fee Deferral Program – Today’s Recommendations Owned Occupied For Sale: No changes Rental: Encourage the development of affordable rental housing development by allowing the BCC, on a case-by-case basis to: Consider impact fee deferrals in excess of the annual allotment of 225 Consider impact fee deferrals of greater than ten (10) years Include Moderate income (120%MI) Extend the affordability term from 15 to 30 years. 6 11.A.3 Packet Pg. 244 Attachment: Housing Plan- Step 2 - BCC Public Presentation - 040418-1336 (5343 : Recommendation #2: Supercede/ Establish a LOCAL Housing Trust Fund 7 Benefits of a Local Housing Trust Fund Wide Range of Funding Sources –Everyone Participates Identifies Potential Uses Identifies Administration and Oversight Addresses Backlog All Income Levels may be Assisted Creates Leverage Opportunities (typically 10:1; up to 25:1) 11.A.3 Packet Pg. 245 Attachment: Housing Plan- Step 2 - BCC Public Presentation - 040418-1336 (5343 : Local Housing Trust Fund 8 In Lieu of Fees Land Sale $ Linkage Fee Philanthropy Sales Tax General Fund Down Payment Impact Fee Relief Land Acquisition Construction Loans Comm. Land Trust Rehabilitation Rental Assist Local $ -SAIL Targeted Incomes Disaster Relief Trust Fund 10% for Seniors and Persons with Special Needs Prioritization Oversight Goal Setting Accountability Local Flexibility LOCAL Housing Trust Fund Allows LOCAL control 11.A.3 Packet Pg. 246 Attachment: Housing Plan- Step 2 - BCC Public Presentation - 040418-1336 (5343 : Recommendation #2: Supercede/ Establish a LOCAL Housing Trust Fund 9 Todays recommendation: Supercede/Establish a Local Housing Trust fund as a depository of locally collected affordable housing funding. Approve resolution superceding prior resolution to create an updated framework of oversight, uses, and processes and controls. 11.A.3 Packet Pg. 247 Attachment: Housing Plan- Step 2 - BCC Public Presentation - 040418-1336 (5343 : Recommendation #3: Establish a Community Land Trust 10 Legal Structure/ Policy Buy, donate, use trust fund $ Not for profit partner Build Homes/Apartments Hold in Perpetuity 11.A.3 Packet Pg. 248 Attachment: Housing Plan- Step 2 - BCC Public Presentation - 040418-1336 (5343 : Recommendation #3: Establish a Community Land Trust 11 OVERVIEW •Permanent nonprofit ownership of the land,or land lease •Units sold or rented to income qualified households with the land remaining in CLT ownership under 99-year land lease •Nonprofit retains ownership of the land reducing the housing costs and the unit remains permanently affordable •The owner of a CLT home is required to sell to a similarly qualified buyer at a restricted price, determined by a resale formula found in the ground lease •By excluding the price of the land,the overall purchase price and the monthly mortgage (PITI)or rental payments are affordable 11.A.3 Packet Pg. 249 Attachment: Housing Plan- Step 2 - BCC Public Presentation - 040418-1336 (5343 : Recommendation #3: Establish a Community Land Trust 12 HISTORY •Ownership of improvements on leased land traces back decades •Early examples are Arden, Delaware and Fairhope, Alabama. •Largest and oldest - Champlain Housing Trust in Burlington, Vermont which currently manages 2,200 rental units and 565 owner-occupied units FLORIDA •Several established in the early 2000s in response to the housing boom and rapid rise in purchase prices •There is no enabling legislation required for community land trusts •They are Florida nonprofit organizations with section 501(c)(3) IRS tax exemption 11.A.3 Packet Pg. 250 Attachment: Housing Plan- Step 2 - BCC Public Presentation - 040418-1336 (5343 : Recommendation #3: Establish a Community Land Trust STRUCTURE –Set forth in the By-Laws The typical community land trust board is made up of three groups: •Resident members –CLT homeowners/renters •General members –residents of the community that do not own CLT homes •Public members –represent the public interest. Can include elected officials, municipal staff, and/or representatives from other local nonprofits. The land is considered a public asset that the CLT stewards on behalf of the community. There are three basic goals to stewardship: •Preserve the affordability of the units •Preserve the physical quality of the units •Insure the security of the homeowner 13 In most cases,CLTs operate as independent organizations 11.A.3 Packet Pg. 251 Attachment: Housing Plan- Step 2 - BCC Public Presentation - 040418-1336 (5343 : Recommendation #3: Establish a Community Land Trust 14 Work with the County Attorney to create the legal framework of an entity to become a Community Land Trust in Collier County. Provide funding for legal costs, initial staffing, logistical support. Ensure County participation in development of priorities and governance. 11.A.3 Packet Pg. 252 Attachment: Housing Plan- Step 2 - BCC Public Presentation - 040418-1336 (5343 : Recommendation #4: Initiate Linkage Fee Study $1/SqFt for Non-Residential 15 •Links new Commercial/ Industrial Development to the Affordable Housing Demands it creates •National Best Practice recommended in ULI Study- Stable/Recurring Revenue Streams •Several in existence in Florida •High wage/targeted industries excluded •Housing Plan recommendation is a nominal $1/square foot 11.A.3 Packet Pg. 253 Attachment: Housing Plan- Step 2 - BCC Public Presentation - 040418-1336 (5343 : Collier Comprehensive Plan Guidance Policy 1.9 of the Housing Element of the Collier County Comprehensive Plan specifically tasks the County, with the City of Naples, to explore the development of a fair share affordable housing ordinance that shall require commercial and residential developments to address the lack of affordable housing. This policy supports the primary goal and objective of this Housing Element, which is to provide new affordable housing units in order to meet the current and future housing needs of residents with very-low, low, moderate, and gap incomes, including households with special needs such as rural and farmworker housing in rural Collier County. 16 11.A.3 Packet Pg. 254 Attachment: Housing Plan- Step 2 - BCC Public Presentation - 040418-1336 (5343 : Collier County Housing Plan Non-Residential Sqft 17 11.A.3 Packet Pg. 255 Attachment: Housing Plan- Step 2 - BCC Public Presentation - 040418-1336 (5343 : Recommendation #4: Initiate Linkage Fee Study 18 Todays recommendation: Direct staff to initiate the process of engaging in a linkage fee nexus study to determine appropriate linkage fees on new development, as well as the maximum feasible fees development can support in light of existing fees and other factors. 11.A.3 Packet Pg. 256 Attachment: Housing Plan- Step 2 - BCC Public Presentation - 040418-1336 (5343 : Recommendation #5: Develop a housing that is affordable marketing, public relations, and communications plan. 19 Communication, Education and Outreach Matching demand and supply Matching developers with incentives 11.A.3 Packet Pg. 257 Attachment: Housing Plan- Step 2 - BCC Public Presentation - 040418-1336 (5343 : Collier County Housing Plan Recommendations-Communication & Outreach Access to information: Website Current Inventory of Affordable Housing Availability Links to Information & Resources, outlining all available programs Easy application process for Developers and Applicants Developers and Consumers benefit Matches Buyers & Sellers Communications Plan to keep the public aware of efforts and impact 20 11.A.3 Packet Pg. 258 Attachment: Housing Plan- Step 2 - BCC Public Presentation - 040418-1336 (5343 : Recommendation #5: Develop a housing that is affordable marketing, public relations, and communications plan. 21 Todays recommendation: Communication, Education and Outreach Matching demand and supply Matching developers with incentives 11.A.3 Packet Pg. 259 Attachment: Housing Plan- Step 2 - BCC Public Presentation - 040418-1336 (5343 : Step Two Implementation Items Summary: 22 1.Amendments to the Code of Laws and Ordinances related to Impact Fee Deferrals; 2.Supercede/Establish a new Local Housing Trust Fund; 3.Initiate the process to establish a Community Land Trust; 4.Initiate a nexus study to determine appropriate linkage fees; 5.Develop a housing that is affordable marketing, public relations, and communications plan. 11.A.3 Packet Pg. 260 Attachment: Housing Plan- Step 2 - BCC Public Presentation - 040418-1336 (5343 : Questions 23 11.A.3 Packet Pg. 261 Attachment: Housing Plan- Step 2 - BCC Public Presentation - 040418-1336 (5343 :