Agenda 12/11/2012 Item #16D20/eI1
12/11/2012 Item 16.D.20.
EXECUTIVE SUIVLMy
This item is being continued from the November 13th BCC meeting. Recommendation to authorize
a budget amendment recognizing $277,867.36 in program income revenue generated when
conveying properties acquired under the Neighborhood Stabilization Program (NSP1)
OBJECTIVE: To accurately account for program income generated from NSP1 activities.
CONSIDERATIONS: Collier County has used Neighborhood Stabilization Program funds to acquire
and rehabilitate foreclosed and abandoned properties. Once rehabilitation is complete, the homes are sold
to income -qualified persons or families. Upon sale, the net proceeds are returned to Collier County as
program income to be used for .other eligible Neighborhood Stabilization Program activities, including
administration. The following table lists the properties that sold which generated the program income.
Property
Address
Total
Expenditures
Unrecoverable
*
Expenditures
(Acquisition
Contract
Down
Payment
Misc
Closing
Net
Proceeds
rocee
b Pro a
y Property
Funds
and Rehab)
Price
Assistance
Costs
(Revenue )
4437 54th
Avenue NE,
$105,854.02
($3,786.47)
$102,067.55
$101,000
($30,300)
$1.42
$70,701.42
Naples
4910 42nd
Street NE,
$76,293.21
($3,931.49)
$72,361.72
$71,000
($21,300)
$1.42
$49,701.42
Naples
503132nd
Avenue SW,
$117,657.17
($3,438.44)
$114,218.73
$113,000
($33,900)
($24.10)
$79,075.90
Naples
2545 45
Avenue NE,
$117,181.93
($3,801.66)
$113,380.27
$112,000
($33,600)
($11.38)
$78,388.62
Naples
TOTAL
$416,986.33
($14,958:06)
$402,028.27
$397,000
($119,100)
($32.64)
$277,867.36
*In determining the sale price limitation, HUD will not consider the costs of boarding up, lawn mowing,
or simply maintaining the property in a static condition. These carrying costs may not be included by the
grantee in the determination of the sales price for an NSP- assisted property.
The "Contract Price" is determined per the policy set forth in the County approved NSP Administrative
Plan regarding the final sales price. The final sale price may be lesser of (a) the aggregate of all
acquisition, rehabilitation, and redevelopment costs, minus $1,000, rounded down to the nearest thousand;
or (b) the appraised value established by a licensed third -party appraiser during the process of qualifying
for first mortgage financing from a private financial institution. Per Federal NSP Policy Alerts, the
maximum sales price for any property purchased and rehabilitated with NSP funds must be less than the
total expenditures minus carrying costs per property.
The "Down Payment Assistance" (i.e. subsidy retention) is secured by a second mortgage recorded in the
Public Records of Collier County and will be repaid when a home is sold, refinanced, or no longer used as
a principal residence.
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1 /11 /2012 Item 16. D.20.
The "Net Proceeds" listed above represents the amount of net revenue generated in compliance with grant
regulations and does not represent a profit figure.
Program Income is defined at 24 CFR 570.500 as "gross income received by the recipient or a
subrecipient directly generated from the use of CDBG funds." Using this definition any revenue
generated through the sale of a NSP property will generate Program Income. Program Income must be
used towards NSP eligible uses also known as eligible activities (Acquisition, Rehabilitation,
Redevelopment, Land Banking, and Demolition). Program Income may also be used to pay developer
fees to a developer which carries out the aforementioned NSP activities through program delivery and for
administration activities.
HHVS will use program income generated by the sale of NSP homes to successfully implement the Board
approved NSP exit strategy. As the County depletes its NSP housing stock through sale of property,
program income has and will be used to cover any additional expenditures related to the final payment of
NSP contractors to finish remaining NSP properties. Also as program income i&generated through the
sale of the last of the County owned NSP properties, the program income will be applied to the payment
of developer fees to Habitat for Humanity. Per Federal Policy, the sale of properties that have been
transferred to Habitat through a developer agreement will not generate any further program income and
will allow for the successful closeout of the NSP program. All program income will be used in
compliance with federal grant regulations.
Furthermore, approval of this item will authorize the reallocation of funds within the program
commitment items to accurately reflect ongoing program expenses as shown below. NSP guidelines
allow 10% ($27,786.73) of program income to fund administration.
Property Address
Net Proceeds
A
Program
4437 54th Avenue NE, Naples
$70,701.42
$7,070.14
$63,631.28
4910 42nd Street NE, Naples
$49,701.42
$4,970.14
$44,731.28
5031 32nd Avenue SW, Naples
$79,075.90
1 $7,907.59
$71,168.31
2545 45s' Avenue NE, Naples
$78,388.62
$7,838.86
$70,549.76
Total Net Proceeds
$277,867.36
$27,786.73
$250080.63
Any remaining program income at the time of grant closeout will be disposed of per Federal guidelines.
The Department of Housing and Urban Development (HUD) plans to publi#h closeout. guidelines
pertaining to program income for grantees during the early part of 2013.
FISCAL IMPACT: A budget amendment is necessary to recognize program income revenue in the
amount of $277,867.36 within Urban Improvement Grants Fund 121, NSP1 Project 33050.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney's Office, raises
no legal issues, and requires majority vote for Board approval. -JBW
GROWTH MANAGEMENT IMPACT: The Neighborhood Stabilization Program facilitates the goals,
objectives and policies set forth in the Housing Element of the Growth Management Plan.
RECOMMENDATION: To recognize $277,867.36 in revenue and authorize this corresponding budget
amendment.
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/0"1
�1
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.D.20.
12/11/2012 Item 160.20.
Item Summary: This item continued from the November 13, 2012 BCC meeting.
Recommendation to authorize a budget amendment recognizing $277,867.36 in program
income revenue generated when conveying properties acquired under the Neighborhood
Stabilization Program (NSP1)
Meeting Date: 12/11/2012
Prepared By
Name: MagonGeoffrey
Title: Grants Coordinator
11/13/2012 5:10:11 PM
Approved By
Name: AlonsoHailey
Title: Operations Analyst, Public Service Division
Date: 11/14/2012 2:11:43 PM
Name: LarsenKathleen
Date: 11/14/2012 4:00:33 PM
Name: SonntagKristi
Date: 11/14/2012 4:57:10 PM
Name: GrantKimberley
Title: Interim Director, HHVS
Date: 11/15/2012 5:09:03 PM
Name: WhiteJennifer
Title: Assistant County Attorney,County Attorney
Date: 11/16/2012 11:27:02 AM
Name: AckermanMaria
Title: Senior Accountant, Grants
Date: 11/21/2012 8:33:18 AM
Packet Page -3596-
Name: CarnellSteve
Title: Director - Purchasing/General Services,Purchasing
Date: 11/28/2012 9:19:11 AM
Name: FinnEd
Title: Senior Budget Analyst, OMB
Date: 11/28/2012 9:59:42 AM
Name: StanleyTherese
Title: Management/Budget Analyst, Senior,Office of Manage
Date: 11/28/2012 11:46:20 AM
Name: KlatzkowJeff
Title: County Attorney
Date: 11/29/2012 1:37:18 PM
Name: OchsLeo
Title: County Manager
Date: 12/1/2012 2:13:35 PM
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12/11/2012 Item 16.D.20.
12/11/2012 Item 16.D.20.
i"�
SAP Back -Up for NSP1 Property Sales 10 -9 -12 thru 10 -31 -12
Fund
WBS Elem.
Cost Elem.
Cost element name
RefDocNo
DocumentNo
121
33050.1
369600
GRANT PROGRAM INCOME
100576338
101405099
121
33050.1
369600
GRANT PROGRAM INCOME
100576338
101405099
121
33050.1
369600
GRANT PROGRAM INCOME
100576338
101405099
121
33050.1
369600
GRANT PROGRAM INCOME
100581634
101412738
121
33050.2.17
369600
GRANT PROGRAM INCOME
100581634
101412738
121
33050.2.18
369600
GRANT PROGRAM INCOME
100576338
101405099
121
33050.2.25
369600
GRANT PROGRAM INCOME
100576338
101405099
121
33050.2.4
369600
GRANT PROGRAM INCOME
100576338
101405099
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Val /COArea Crcy
Postg Date
$
(7,070.14)
10/09/2012
$
(4,970.14)
10/09/2012
$
(7,907.59)
10/09/2012
$
(7,838.86)
10/31/2012
$
(70,549.76)
10/31/2012
$
(71,168.31)
10/09/2012
$
(44,731.28)
10/09/2012
$
(63,631.28)
10/09/2012
9
(277.867.36)
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12/11/2012 Item 16.D.20.