Agenda 07/26/2011 Item #16D 37/26/2011 Item 16.D.3.
EXECUTIVE SUMMARY
Recommendation to approve a budget amendment recognizing $63,073.20 in revenue generated as
program income when conveying property acquired through the Neighborhood Stabilization
Program. (Fiscal impact 563,073.20)
OBJECTIVE: To approve a budget amendment recognizing $63,073.20 in revenue generated as program
income when conveying properties acquired through the Neighborhood Stabilization Program.
CONSIDERATIONS: On December 1, 2009, agenda item 17B, the Board of County Commissioners
adopted Ordinance No. 2009 -63 to establish policies and procedures to be used when selling and
conveying real property acquired under the Neighborhood Stabilization Program (NSP). The ordinance
was necessary to ensure Collier County was in compliance with § 12535(3), Florida Statutes.
Collier County has used NSP 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 NSP
activities, including administration. Property located at 3120 Wilson Boulevard was purchased by the
County for $77,500 and sold to income - qualified persons for $90.000. The following table more fully
details the revenue generated. which requires a budget amendment.
The down payment assistance (i.e. subsidy retention) is secured by a second mortgage recorded at Official
Records Book 4679 Page 0174 in the Public Records of Collier County and will be repaid when the home
is sold, refinanced, or no longer used as a principal residence. A reduction of the sale price was required
to secure first mortgage financing when an independent third -party appraiser determined the home's
market value to be $90,000. Finally, after Collier County entered into a contract to sell the home to
program participant, but prior to closing, the HVAC and water system were stolen. The cost to replace
those items is included in the unrecoverable expenditures listed above.
This revenue will be used in compliance with federal grant regulations and will fund eligible expenses,
including administration. Furthermore, approval of this item will authorize the reallocation of funds
within the program commitment items to accurately reflect ongoing program expenses.
FISCAL IMPACT: A total of $63),073.20 will be recognized as revenue for FYI I in Fund 121.
LEGAL CONSIDERATIONS: This item is legally sufficient and requires a majority vote. — 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.
Packet Page -1710-
Expenditures
Reduction of Sale
Net
F�Addp roe rty
( Purchase of
Price due to
Unrecoverable Funds
Down Payment
Proceeds
ress
Property by County
Appraised Value
S Theft Expenses
Assistance
(Revenue)
and Rehabilitation
3120 Wilson
Blvd, Naples,
$132,098.28
(537,576.56) (54.448.52) ($27,000.00)
563,073.20
FL 34120
The down payment assistance (i.e. subsidy retention) is secured by a second mortgage recorded at Official
Records Book 4679 Page 0174 in the Public Records of Collier County and will be repaid when the home
is sold, refinanced, or no longer used as a principal residence. A reduction of the sale price was required
to secure first mortgage financing when an independent third -party appraiser determined the home's
market value to be $90,000. Finally, after Collier County entered into a contract to sell the home to
program participant, but prior to closing, the HVAC and water system were stolen. The cost to replace
those items is included in the unrecoverable expenditures listed above.
This revenue will be used in compliance with federal grant regulations and will fund eligible expenses,
including administration. Furthermore, approval of this item will authorize the reallocation of funds
within the program commitment items to accurately reflect ongoing program expenses.
FISCAL IMPACT: A total of $63),073.20 will be recognized as revenue for FYI I in Fund 121.
LEGAL CONSIDERATIONS: This item is legally sufficient and requires a majority vote. — 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.
Packet Page -1710-
7/26/2011 Item 16.D.3.
RECOMMENDATION: To approve a budget amendment recognizing $63.073.20 in revenue generated
as program income when conveying properties acquired through the Neighborhood Stabilization Program.
Prepared By: Frank Ramsey, Housing Manager, Housing, Human and Veteran Services
Packet Page -1711-
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.D.3.
7/26/2011 Item 16.D.3.
Item Summary: Recommendation to approve a budget amendment recognizing
$63,073.20 in revenue generated as program income when conveying property acquired
through the Neighborhood Stabilization Program. (Fiscal impact $63,073.20)
Meeting Date: 7/26/2011
Prepared By
Name: RamseyFrank
Title: Manager, Housing. Human and Veteran Services
6/29/2011 2:10:50 PM
Submitted by
Title: Manager, Housing, Human and Veteran Services
Name: RamseyFrank
6/29/2011 2:10:52 PM
Approved By
Name: AlonsoHailey
Title: Administrative Assistant_Domestic Animal Services
Date: 6/30/2011 9:35:13 AM
Name: KrumbineMarcy
Title: Director - Housing & Human Services,Housing. Human & Veteran Services
Date: 6/30/2011 11:07:14 AM
Name: WhiteJennifer
Title: Assistant Counn Attomey.County Attorney
Date: 6/30/2011 11:14:41 AM
Name: AckennanMaria
Date: 6/30/2011 1129:42 AM
Name: FoordMarlene
Packet Page -1712-
Title: Grant Development & Mgmt Coordinator. Grants
Date: 7/1,'2011 10:58:21 AM
Name: RamseyMarla
Title: Administrator, Public Services
Date: 7/12/2011 10:21:20 AM
Name: WhiteJennifer
Title: Assistant County Attorney,County Attorney
Date: 7/14/2011 10:42:40 AM
Name: KlatzkowJeff
Title: County Attorney,
Date: 7/14/2011 10:58:39 AM
Name: PryorCheryl
Title: Management/ Budget Analyst. Senior.Office of Management & Budget
Date: 7/18/2011 3:54:54 PM
Name: PriceLen
Title: Administrator- Administrative Services,
Date: 7 /19/2011 8:42:19 AM
Packet Page -1713-