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Agenda 05/08/2012 Item #16D 85/8/2012 Item 16.D.8. EXECUTIVE SUMMARY Recommendation to authorize the Chair to sign a letter to the U.S. Department of Housing and Urban Development finalizing an agreement between HUD and Collier County to accept a reduction in HOME funding to repay HOME funds used in support of HOME Activity #195 (Cirrus Pointe). OBJECTIVE: Respond to a request from HUD Headquarters to finalize an agreement between HUD and Collier County to accept a reduction in HOME funding to repay HOME funds used in support of HOME Activity #195 (Cirrus Pointe). CONSIDERATIONS: On December 14, 2005 the Collier County Housing Development Corporation ( CCHDC) was awarded $320,000 in federal funds for land acquisition and the development of affordable housing units. However, CCHDC (now known as the Housing Development Corporation of SW Florida) failed to materially comply with the terms of the agreement and no affordable housing units were constructed. To remedy the situation, in April 2010, Housing, Human and Veterans Services (HHVS) staff contacted HUD and requested a reduction in HOME grant funds in lieu of repayment of the $320,000 from Collier County general funds. On February 8, 2011, HHVS received HUD Miami's approval to the reduction of HOME funds in the amount of $160,000 a year for a two (2) year period. HUD outlined requirements to finalize the agreement including public notice and inclusion of the item in the 2011 -2016 Consolidated Plan and the 2011 -2012 Action Plan, both of which have received Board approval. All notice requirements have been completed by HHVS as outlined by HUD Miami. Recently HHVS was contacted again by HUD Miami, and it relayed a further request from HUD Headquarters. HUD Headquarters requires that the BCC chair submit the attached letter to HUD which: 1. Requests a voluntary grant reduction for a 2 year period due to hardship in repayment from general funds 2. Includes language that in exchange for HUD's approval of the County's voluntary request to reduce its allocation of HOME Funds for FY2011 and FY2012, the County agrees to waive its right to further appeal the matter as provided in 24 CFR 92.552. Although the County has adhered to the direction provide by HUD's Miami Office to resolve this issue, if HUD's Washington D.C. office does not approve the request for voluntary reduction, the County may be required to pay back the sum from local funds; subject to the County's decision whether to appeal such a decision. Staff recommends that the Board authorize its Chairman to sign and send the attached letter. Without the voluntary reduction request, the only alternative is to provide the reimbursement with local funds. The Board previously opined it does not wish to utilize local funds if there is a viable alternative; and staff pursued that course, as directed by HUD Miami, whereby the Packet Page -1024- 5/8/2012 Item 16.D.8. County's voluntary agreement to reduce its HOME funds over a two -year fiscal period would satisfy the repayment obligation. FISCAL IMPACT: The table below provides a history of HOME funding levels and the anticipated result of the pay back in the amount of $320,000 over a two -year period. Eligible HOME activities will be funded at a reduced level to maintain no impact to the General Fund. Fiscal Year Award Adiiletmant Ti;.,.,1 A.., --A 2009 $ 754,154 $ 754,154 2010 $ 748,202 $ 748,202 2011 $ 662,126 $ (160,000) $ 502,126 2012 $ 456,777 $ (160,000) $ 296,777 2013* $ 456,000 $ 456,000 *assumes appropriation is flat GROWTH MANAGEMENT IMPACT: None. LEGAL CONSIDERATIONS: This item has been reviewed and approved by the County Attorney's Office, is legally sufficient for Board action and only requires a majority vote for approval —SRT. RECOMMENDATION: Recommendation to authorize the Chair to sign a letter to the U.S. Department of Housing and Urban Development finalizing an agreement between HUD and Collier County to accept a reduction in HOME funding to repay HOME funds used in support HOME Activity #195 (Cirrus Pointe). PREPARED BY: Margo Castorena, Federal and State Grants Manager Housing, Human and Veteran Services Packet Page -1025- COLLIER COUNTY Board of County Commissioners Item Number: 16.D.8. 5/8/2012 Item 16.D.8. Item Summary: Recommendation to authorize the Chair to sign a letter to the U.S. Department of Housing and Urban Development finalizing an agreement between HUD and Collier County to accept a reduction in HOME funding to repay HOME funds used in support of HOME Activity #195 (Cirrus Pointe). Meeting Date: 5/8/2012 Prepared By Name: K1opfWendy Title: Operations Coordinator,Housing, Human & Veteran Se 3/16/2012 10:26:56 AM Submitted by Title: Manager - Federal/State Grants, HHVS Name: CastorenaMargo 3/16/2012 10:26:57 AM Approved By Name: CastorenaMargo Title: Manager - Federal/State Grants, HHVS Date: 3/16/2012 4:53:27 PM Name: AlonsoHailey Title: Administrative Assistant,Domestic Animal Services Date: 3/19/2012 8:28:19 AM Name: GrantKimberley Title: Interim Director, HHVS Date: 3/20/2012 1:59:57 PM Name: AckermanMaria Title: Senior Accountant, Grants Date: 3/20/2012 3:18:12 PM Packet Page -1026- Name: CarnellSteve Title: Director - Purchasing/General Services,Purchasing Date: 3/27/2012 10:46:04 AM Name: AckermanMaria Title: Senior Accountant, Grants Date: 3/28/2012 3:54:03 PM Name: TeachScott Title: Deputy County Attorney,County Attorney Date: 4/23/2012 12:02:57 PM Name: StanleyTherese Title: Management/Budget Analyst, Senior,Office of Management & Budget Date: 4/25/2012 11:14:40 AM Name: PryorCheryl Title: Management/ Budget Analyst, Senior,Office of Management & Budget Date: 4/27/2012 9:04:09 AM Name: KlatzkowJeff Title: County Attorney Date: 4/27/2012 2:39:07 PM Name: OchsLeo Title: County Manager Date: 4/29/2012 8:27:57 PM Packet Page -1027- 5/8/2012 Item 16.D.8. 5/8/2012 Item 16.D.8. a Board of Collier County Commissioners Donna Fiala Georgia A. Hiller, Esq. Tom Henning Fred W. Coyle District 1 District 2 District 3 District 4 May 8, 2012 Ms. Mercedes Marquez Assistant Secretary, Community Planning and Development US Department of Housing and Urban Development 4517"' St. SW, Room 7100 Washington D.C. 20410 Maria Ortiz, CPD Director U. S. Dept of Housing & Urban Development CPD Brickell Plaza Federal Building 909 SE First Avenue Room 500 Miami, FL 33131 -3042 RE: HOME Program Open Activity #195- Cirrus Pointe Dear Mesdames Marquez and Ortiz: Jim Coletta District 5 This letter is in reference to Collier County's HOME Open Activity #195 (Cirrus Pointe). Early in 2011, via correspondence with the Miami Field Office, Collier County requested that it be allowed to take a voluntary reduction in HOME funds over a two year period to resolve the Cirrus Pointe issue. The County now understands that HUD Headquarters is reviewing this matter. This letter is to reiterate it would be a hardship for the County to reimburse the funds concerning this matter from non - federal funds. The County has experienced several years of declining revenues, which is expected to continue. Should the County be required to reimburse the funds associated with the Cirrus Pointe project from non - federal funds, the County could face substantial reductions to staff and services to compensate for the repayment. Consequently, the County respectfully requests that HUD allow the County to satisfy this issue by reducing funding over a two year period through a reduction of HOME funds (FY 2011 and FY2012). Subject to HUD's approval in writing of Collier County's voluntary request to reduce its HOME grant funds allocation as requested herein, Collier County will waive its right for a hearing to address this matter as allowed under 24 CFR § 92.552. Sincerely, Fred W. Coyle, Chairman Collier County Board of County Commissioners CC: Steve Carrell, Interim Public Services Division Administrator Kimberley Grant, Interim Director, Housing Human & Veteran Services Attachment: HUD Miami Letter, dated April 8, 2011 3299 Tamiami Trail East, Suite 303 • Packet Page -1028- 239- 252 -8097 • FAX 239 - 252 -3602 5/8/2012 Item 16.D.8. 'pJYEN7pA, U.S. Department of Housing and Urban Development o* * r Atlanta Region, Miami Field Office Brickell Plaza Federal Building 909 SE First Avenue, Rm. 500 Miami, FL 33131 -3042 April 8, 2011 Marcy Krumbine, M.P.A., Director Collier County Housing, Human & Veteran Services 3339 Tamiami Trail East Suite 211 Naples, FL 34112 -5361 SUBJECT: HOME — Open Activity Cirrus Pointe Dear Ms. Krumbine: This letter is in response to the County's HOME Open Finding on activity #195 — Cirrus Pointe. A review of the County's response reflects that the County agrees to take a voluntary reduction in HOME funds over a two year period for a total amount of $160,000, commencing with the County's 2011 -2012 Action Plan and ending with the County's 2012 Action Plan for a total of $320,000. Since the reduction in HOME funds will not commence until October 1, 2011, this office is unable to close out this finding until after the County's 2011 and 2012 Action plans have been received and reviewed for verification of reduction of HOME funds totaling $320,000. In the interim the County must list the reduction in its 2011 and 2012 Action Plans along with ensuring that the required Citizen Participation Process is met by advertising the reduction in HOME funds along with providing the required 30 day comment period. In addition, the County needs to amend the applicable Action plan to reflect the cancellation of the activity. Please provide documentation that would reflect that all requirements have been met (i.e., public ad, 30 day comment period, etc.) once complete. In reference to the County's request for assistance on cancelling this activity in IDIS please refer to the following HOME IDIS Training Manual for PJs which provides guidance on cancelling an activity. The training manual can be accessed at the following website: http: / /www.hud.jzov/ offices/ cpd/ affordablehousing [projzrams/home/home idis manual Ri cfm For more specific guidance on cancelling an activity please refer to Chapter 19 at the website below: . hqp: / /www.hud.gov/ offices/ cpd/ affordablehousing /proprams/home/home idismanual/HOME man ual chapl9 Rdf HUD's mission is to increase homeownership, support community development and increase access to affordable housing free from discrimination. www.hud.gov espanothud.gov Packet Page -1029- r 5/8/2012 Item 16.D.8. This office will continue to work with the County in order to ensure that the County is in compliance with applicable rules and is available to provide TA as needed. If you have any questions pertaining to this matter, you may contact Nora E. Casal, Community Planning Development Representative at (305) 520 -5009. Sincerely, Maria .O -Hill Director, Community Planning and Development Division /cc: Margo Castonera, MBA.MB., Grants and Operations Manager Housing and Human Services Ann D. Chavis, Program Manager Packet Page -1030-