Backup Documents 02/28/2012 Item #11HORIGINAL DOCUMENTS CHECKLIST & ROUTING SLIP 11 H
TO ACCOMPANY ALL ORIGINAL DOCUMENTS SENT TO
THE BOARD OF COUNTY COMMISSIONERS OFFICE FOR SIGNATURE
Print on pink paper. Attach to original document. Original documents should be hand delivered to the Board Office. The completed routing slip and original
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ROUTING SLIP
Complete routing lines # 1 through #4 as appropriate for additional signatures, dates, and/or information needed. If the document is already complete with the
exception of the Chairman's signature, draw a line throu routing lines #I through #4, complete the checklist, and forward to Sue Filson (line #5).
Route to Addressee(s)
(List in routing order)
Office
Initials
Date
1.Frank Ramsey
HHVS
(Initial)
3/7/2012
2. Jennifer B. White
CAO
Agenda Item Number
�. Tiioved from
3. Chairman Fred W. Coyle
Board of County Commissioners
16136)
4.
NSP Action Plans
Number of Original
2
5. Ian Mitchell, Executive Manager
Board of County Commissioners
Documents Attached
3
ll2 jIZ
6. Minutes and Records
Clerk of Court's Office
PRIMARY CONTACT INFORMATION
(The primary contact is the holder of the original document pending BCC approval. Normally the primary contact is the person who created/prepared the executive
summary. Primary contact information is needed in the event one of the addressees above, including Sue Filson, need to contact staff for additional or missing
information. All original documents needing the BCC Chairman's signature are to be delivered to the BCC office only after the BCC has acted to approve the
item.)
Name of Primary Staff
Frank Ramsey, Operations Analyst
Phone Number
252 -2336
A
Contact
appro riate.
(Initial)
(,
Agenda Date Item was
02/28/2012
Agenda Item Number
�. Tiioved from
Approved by the BCC
signed by the Chairman, with the exception of most letters, must be reviewed and signed
by the Office of the County Attorney. This includes signature pages from ordinances,
16136)
Type of Document
NSP Action Plans
Number of Original
2
Attached
contracts, agreements; etc. that have been fully executed by all parties except the BCC
Documents Attached
INSTRUCTIONS & CHECKLIST
I: Forms/ County Forms/ BCC Forms/ Original Documents Routing Slip WWS Original 9.03.04, Revised 1.26.05, Revised 2.24.05
Initial the Yes column or mark "N /A" in the Not Applicable column, whichever is
Yes
N/A (Not
appro riate.
(Initial)
Applicable)
1.
Original document has been signed/initialed for legal sufficiency. (All documents to be
signed by the Chairman, with the exception of most letters, must be reviewed and signed
by the Office of the County Attorney. This includes signature pages from ordinances,
resolutions, etc. signed by the County Attorney's Office and signature pages from
contracts, agreements; etc. that have been fully executed by all parties except the BCC
Chairman and Clerk to the Board and possibly State Officials.)
2.
All handwritten strike - through and revisions have been initialed by the County Attorney's
Office and all other parties except the BCC Chairman and the Clerk to the Board
3.
The Chairman's signature line date has been entered as the date of BCC approval of the
document or the final negotiated contract date whichever is applicable
4.
"Sign here" tabs are placed on the appropriate pages indicating where the Chairman's
signature and initials are required.
5.
In most cases (some contracts are an exception), the original document and this routing slip
should be provided to Sue Filson in the BCC office within 24 hours of BCC approval.
Some documents are time sensitive and require forwarding to Tallahassee within a certain
time frame or the BCC's actions are nullified. Be aware of your deadlines!
6.
The document was approved by the BCC on 02/28/2012 and all changes made during
the meeting have been incorporated in the attached document. The County Attorney's
Office has reviewed the changes, if applicable.
I: Forms/ County Forms/ BCC Forms/ Original Documents Routing Slip WWS Original 9.03.04, Revised 1.26.05, Revised 2.24.05
I 1H
MEMORANDUM
Date: March 13, 2012
To: Frank Ramsey, Operations Analyst
Housing, Human & Veteran Services
From: Ann Jennejohn, Deputy Clerk
Minutes & Records Department
Re: Amending NSP Action Plans to execute program
changes and submission of the revised plans to HUD
Attached for your records is a certified copy of the document referenced above,
(Item #11H) approved by the Board of County Commissioners February 28, 2012.
The original will be held on file in the Minutes and Record's Department for the
Board's Official Record.
If you have any questions, please contact me at 252 -8406.
Thank you.
Attachment
11H
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
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Collier County, Florida Page 1
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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 NS131 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 NS133 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
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income range and housing type (home ownership versus rental) and may prove a valuable tool in the
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
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 Fa
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 -one (31) units. 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 tiers in which funds
may be deeply targeted and produce the results expected by HUD, the Housing and Economic Recovery
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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 120219230126300010410U1
o GeolD 120219230126300010410U2
o GeolD 120219230126300010410U3
• Tier Two —Census Tract 0104.09
o GeolD 120219230126300010409U1
o GeolD 120219230126300010409U2
o GeolD 120219230126300010409U3
o GeolD 120219230126300010409U4
o GeoID120219230126300010409U5
• Tier Three — Census Tract 0104.11
o GeolD 120219230126300010411U1
o GeolD 120219230126300010411U2
o GeolD 120219230126300010411U3
o GeolD 120219230126300010411R3
o GeolD 120219230126300010411111
Target Area Two East Naples Bayshore Gateway RA (H CUD Neighborhood ID 39811401
• Tier One — Census Tract 0107.01
o GeolD 120219230199999010701U4
o GeolD 120219230199999010701U1
o GeolD 120219230199999010701U2
o GeolD 120219230199999010701U3
o GeolD 120219230199999010701112
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
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
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Collier County, Florida
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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;
1) 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 124 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
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.
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Furthermore, when the NS133 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 124 CFR 92.252(a), (c), (e), and (f), and 92.254
Rental: Lone -Term Affordability
The NS133- 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
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
refinancing.......................... ...............................
15
New construction or acquisition of newly
constructed housing ........... ...........................0...
20
Subsequent rents during the affordability period will be calculated and
applied in conformance with 24 CFR 92.252(f).
Homeownership: Lone -Term Affordability
The NSP3- assisted housing must meet the affordability requirements for not
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i
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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
per -unit
Minimum period of affordability in years
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 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 = NS133 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 (downpayment 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, 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 to the
risk of hurricanes and severe flooding. As such, all NSP3- assisted housing will
undergo hurricane hardening and damage mitigation, when feasible.
uired HUD Standards
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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
Low - Income Set -Aside Amount
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 County's appropriation, rounded up to the
nearest thousand. Please note that activities funded with program income are not subject to the 25
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percent set -aside requirement, however they may be used to meet the regulatory requirement.
Total low- income set -aside percentage (must be no less than 25 percent): 25.00%
Total funds set aside for low- income individuals = $972,000.00
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.
S. 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., <_ 80% of area median income)? 7Yes
If yes, fill in the table below.
Question
Number of Units
The 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 number of NSP affordable housing units made available to low -, moderate -,
and middle - income households — i.e., <_ 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
of February 28,
2014.
Activity 1 LMMH
–14 units
Activity 2 LH25 –
6 units
,;
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The number of dwelling units reasonably expected to be made available for
households whose income does not exceed 50 percent of area median income. 6 units
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.
Summary of Public Comments Received.
No public comments were received.
7. NSP Information by Activity
Activity Number 1
Activity Name
Acquisition and Rehabilitation (LMMH)
Uses
Select
all that apply:
❑
Eligible Use A: Financing Mechanisms
®
Eligible Use B: Acquisition and Rehabilitation
❑
Eligible Use C: Land Banking
❑
Eligible Use D: Demolition
❑ I
Eligible Use E: Redevelopment
CDBG Activity or
Activities
24 CFR 570.201(a) Acquisition, (b) Disposition, (i) Relocation, and (n) Direct
homeownership assistance (as modified below); 24 CFR 570.202 eligible
rehabilitation and preservation activities for homes and other residential
properties. HUD notes that any of the activities listed above may include
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Collier County, Florida
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required homebuyer counseling as an activity delivery cost.
National Objective
Low Moderate Middle Income Housing (LMMH)
Activity Number 1 will provide funding to a 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
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
have been abandoned or foreclosed upon, in order to sell or redevelop such
homes and properties. 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.
Activity Description
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:
• 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
NSP3 Action Plan
Collier County, Florida
Page 11
11H
NSP3 Action Plan
Collier County, Florida Page 12
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 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
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
Location Description
• Tier Two — Census Tract 0104.09
• 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
NSP3
$ $2,136,293
Budget
NSP3 Action Plan
Collier County, Florida Page 12
11M
Activity Number 2
Activity Name
$
Total Budget for Activity
$ $2,136,293
Performance Measures
Acquire and rehabilitate fourteen (14) units of housing for LMMH.
Projected Start Date
March 1, 2011
Projected End Date
February 28, 2014
Responsible
Organization
Name
Collier County Department of Housing,
Human, and Veteran Services
Location
3339 Tamiami Trail E., Suite 211,
Naples, Florida 34112
Administrator Contact Info
239 - 252 -4663
kimberleygrant @colliergov.net
Activity Number 2
Activity Name
Acquisition and Rehabilitation (LH25)
Select
all that apply:
❑ I
Eligible Use A: Financing Mechanisms
Eligible Use B: Acquisition and Rehabilitation
Use
❑
Eligible Use C: Land Banking
❑
Eligible Use D: Demolition
❑
Eligible Use E: Redevelopment
24 CFR 570.201(a) Acquisition, (b) Disposition, (i) Relocation, and (n) Direct
CDBG Activity or
Activities
homeownership assistance (as modified below); 24 CFR 570.202 eligible
rehabilitation and preservation 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- Income Housing to Meet 25% Set -Aside (LH25)
Activity Number 2 will provide funding to a 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
rented to persons or households earning not greater than 50 percent area
median income, adjusted for household size. The County will favor the end -
use of rental housing to provide affordable housing to this income population.
The activity will attempt to stabilize neighborhoods, arrest decline, and create
a more sustainable, integrated, and affordable community. The local housing
Activity Description
market conditions in the target areas generally consists of elevated vacancy
rates, greater percentage of homes financed with a high cost loan, a large
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
have been abandoned or foreclosed upon, in order to sell or redevelop such
homes and properties. When selecting target areas for this activity, Collier
County paid close attention to the impact score assigned by HUD. The impact
NSP3 Action Plan
Collier County, Florida Page 13
I 1H
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:
• 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 persons or households with incomes at or
below 50 percent of the area median income ( "11-125 ") by producing safe,
decent, and affordable housing. Additionally, the Developer may seek to
incorporate energy efficient and environmentally - friendly green elements in
each project.
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 LH25 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. It is expected that much of the housing created
under this activity will be rental housing units.
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
greatest need.
NSP3 Action Plan
Collier County, Florida Page 14
11H
Activity Number 3
The following are examples of activities that may be used to accomplish this
Land Bank (LMMH)
initiative:
Select
• 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
CDBG Activity or
Activities
• Tier One — Census Tract 0104.10
Location Description
• Tier Two — Census Tract 0104.09
• Tier Three — Census Tract 0104.11
Activity Description
Neighborhood ID 3981140: East Naples Bayshore Gateway CRA
Tier One — Census Tract 0107.01
Source of Funding
Dollar Amount
NS133
$971,042
Budget
$
$
Total Budget for Activity
$971,042
Performance Measures
Acquire and rehabilitate six (6) units of housing for LH25.
Projected Start Date
March 1, 2011
Projected End Date
February 28, 2014
Name
Collier County Department of Housing,
Human, and Veteran Services
Location
3339 Tamiami Trail E., Suite 211,
Responsible
Organization
Naples, Florida 34112
Administrator Contact Info
239 - 252 -4663
kimberleygrant @colliergov.net
Activity Number 3
Activity Name
Land Bank (LMMH)
Use
Select
all that apply:
❑
Eligible Use A: Financing Mechanisms
❑
Eligible Use B: Acquisition and Rehabilitation
®
Eligible Use C: Land Banking
❑
Eligible Use D: Demolition
❑
Eligible Use E: Redevelopment
CDBG Activity or
Activities
24 CFR 570.201(a) Acquisition and (b) Disposition. 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)
Activity Description
Activity Number 3 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
NSP3 Action Plan
Collier County, Florida Page 15
11H
NSP3 Action Plan
Collier County, Florida Page 16
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 (4`" quarter 2005), only
16.3% of homes sold were affordable to a household earning the area median
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
Location Description
• Tier Two — Census Tract 0104.09
• 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
NSP3
$388,415
Budget
$
$
Total Budget for Activity
$388,415
Performance Measures
Acquire seven (7) land bank properties.
Projected Start Date
March 1, 2011
Projected End Date
February 28, 2014
Name
Collier County Department of Housing,
Human, and Veteran Services
Location
3339 Tamiami Trail E., Suite 211,
Responsible
Organization
Naples, Florida 34112
Administrator Contact Info
239 - 252 -4663
kimberleygrant @colliergov.net
NSP3 Action Plan
Collier County, Florida Page 16
11H I' ;
Activity Number 4
Activity Name
Administration
Use
Select
all that apply:
®
Eligible Use A: Financing Mechanisms
®
Eligible Use B: Acquisition and Rehabilitation
®
Eligible Use C: Land Banking
®
Eligible Use D: Demolition
®
Eligible Use E: Redevelopment
CDBG Activity or
Activities
24 CFR 570.205 and 206, as amended to provide an alternative that an
amount of up to ten (10) percent of an NSP grant provided to a jurisdiction
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
Budget
Source of Funding
Dollar Amount
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
Responsible
Organization
Name
Collier County Department of Housing,
Human, and Veteran Services
Location
3339 Tamiami Trail E., Suite 211,
Naples, Florida 34112
Administrator Contact Info
239 - 252 -4663
kimberleygrant @colliergov.net
8. Certifications
Certifications for State and 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
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.
NSP3 Action Plan
Collier County, Florida Page 17
11H
(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
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 NSP funds) financed from other
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
NSP3 Action Plan
Collier County, Florida Page 18
11H
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.
(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
ATTEST:
DWIGHT E.rBROCK, CLERK
� w a DEPUTY CLERK
APP OOVv
AND LEGAL SUFFICIENCY
BY: %1 .
JENNIFER AITE
ASSISTANT COUNTY ATTORNEY
BOARD OF COUNTY COMMISSIONERS
COLLIER COUNTY, FLORIDA
BY: 12—
FRED W. COYLE, CHAIRMAN /__70
Item #
Agenda
Date
D;�ta
Date ,
ec'd
Depu
NSP3 Action Plan'
Collier County, Florida Page 19
THE NSP SUBSTANTIAL AMENDMENT
Jurisdiction(s): Collier County
Jurisdiction Web Address: colliergov.net
A. AREAS of GREATESTNEED
NSP Contact Person: Kimberley Grant
Address: 3339 Tamiami Trail E, Suite 211,
Naples, FL 34112 Telephone: (239) 252 -4663
Fax: (239) 252 -2638
Email: kimberleygrant @colliergov.net
11H
Provide summary needs data identifying the geographic areas of greatest need in the grantee's jurisdiction.
Note: An NSP substantial amendment must include the needs of the entire jurisdiction(s) covered by the
program; states must include the needs of communities receiving their own NSP allocation. To include the
needs of an entitlement community, the State may either incorporate an entitlement jurisdiction's consolidated
plan and NSP needs by reference and hyperlink on the Internet, or state the needs for that jurisdiction in the
State's own plan. The lead entity for a joint program may likewise incorporate the consolidated plan and needs
of other participating entitlement jurisdictions' consolidated plans by reference and hyperlink or state the needs
for each jurisdiction in the lead entity's own plan.
HUD has developed a foreclosure and abandonment risk score to assist grantees in targeting the areas of
greatest need within their jurisdictions. Grantees may wish to consult this data, in developing this section of the
Substantial Amendment.
Narrative Response:
Collier County is an economically diverse community, with areas of affluence in the coastal communities as
well as extreme poverty in other locations. The County is geographically large, encompassing approximately
2,025 square miles. Collier County, with an estimated population of 339,000, is located on the southern gulf
coast of the Florida peninsula, due west of Miami -Ft. Lauderdale. The largest of the three incorporated cities in
Collier County is Naples, which is located in the western and coastal area. The remaining two incorporated
cities of Collier County are Everglades City and the City of Marco Island. Everglades City is located south and
east of Naples, while the City of Marco Island lies south of Naples along the Gulf of Mexico.
Collier County used the U.S. Department of Housing and Urban Development's (HUD) average foreclosure
index score in identifying the target geographies for assistance in the redevelopment of abandoned and
foreclosed homes. The destabilization of neighborhoods in Collier County is pervasive, affecting nearly all
areas for the County. As such, any efforts to stabilize the local housing market and revitalize the community
must be Countywide.
Areas at Risk
The table on the following page summarizes the average foreclosure index score for eligible census tracts in
Collier County. To be considered eligible for assistance an area must be assigned a Max Index Score of
nineteen (19) or twenty (20).
11H
Census
Tract
Foreclosure
Needs
Index Score
Vacancy
Risk
Index Score
Max
Index
Score
0104.06
20
12
20
0104.08
19
16
19
0104.01
19
16
19
0102.03
19
19
19
0105.03
20
18
20
0105.04
20
19
20
0106.02
19
15
19
0106.01
19
19
19
0106.04
19
15
19
0106.03
20
16
20
0105.02
20
17
20
0108.01
19
18
19
0107.02
19
14
19
0108.02
20
8
20
0104.11
20
15
20
0104.09
20
18
20
0104.10
20
19
20
0104.14
20
1
20
0104.13
20
1
20
0108.03
19
1
19
0111.01
20
1
20
0109.01
20
18
20
0109.03
20
12
20
0104.12
20
1
20
0112.04
20
17
20
0113.00
20
9
20
0112.02
20
1
20
0114.00
20
13
20
0104.07
20
1
20
0104.05
20
16
20
0102.02
20
1
20
0003.01
18
18
18
0102.04
20
16
20
0101.04
20
7
20
0101.03
20
1
20
Average Max Index Score
19.69
Qualified
i 1H
Identified Program Target Areas
The Collier County NSP Allocation will target the following three (3) areas for economic and housing
redevelopment: East Collier, South Collier and Central Collier. The following tables further define the target
areas to include eligible census tracts within each of the three (3) target areas.
EAST COLLIER TARGET AREA
Census
Tract
Foreclosure
Needs
Index Score
Vacancy
Risk
Index Score
Max
Index
Score
0104.14
20
1
20
0104.13
20
1
20
0104.12
20
1
20
0112.02
20
1
20
Average Max Index Score
20.00
SOUTH COLLIER TARGET AREA
Census
Tract
Foreclosure
Needs
Index Score
Vacancy
Risk
Index Score
Max
Index
Score
0105.04
20
19
20
0106.02
19
15
19
0106.01
19
19
19
0106.04
19
15
19
0106.03
20
16
20
0105.02
20
17
20
0108.01
19
18
19
0107.02
19
14
19
0108.02
20
8
20
0108.03
19
1
19
0111.01
20
1
20
Average Max Index Score
19.45
CENTRAL COLLIER TARGET AREA
Census
Tract
Foreclosure
Needs
Index Score
Vacancy
Risk
Index Score
Max
Index
Score
0104.06
20
12
20
0104.08
19
16
19
0105.03
20
18
20
0104.11
20
15
20
0104.09
20
18
20
0104.10
20
19
20
0104.07 1 20 1 20
h �1
Average Max Index Score 19.86
The map appearing below provides a visual representation of the three (3) target areas. East Collier is depicted
in yellow, South Collier is depicted in green and Central Collier is depicted in blue.
COLLIER COUNTY, FLORIDA
2000 CENSUS TRACTS
" = i
i
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. 14C - -! EAST COLLIER TARGET AREA
-SOUTH COLLIER TARGET AREA
CEWRAL COWER TARGET AREA
Its
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11H '
B. DISTRIBUTION AND USES OF FUNDS
Provide a narrative describing how the distribution and uses of the grantee's NSP funds will meet the
requirements of Section 2301(c)(2) of HERA that funds be distributed to the areas of greatest need, including
those with the greatest percentage of home foreclosures, with the highest percentage of homes financed by a
subprime mortgage related loan, and identified by the grantee as likely to face a significant rise in the rate of
home foreclosures. Note: The grantee's narrative must address these three stipulated need categories in the
NSP statute, but the grantee may also consider other need categories.
Narrative Response:
Based upon the County's analysis of the HUD average foreclosure index scores, all three areas are eligible for
NSP assistance. Furthermore, the 68% of the targeted census tracts have a max index score of 20, the most
severe rating possible under the NSP. The NSP Allocation will be used as described in Section G — NSP
Information by Activity. Twenty -five (25) percent of the Collier County NSP Allocation will be used to assist
households earning no more than fifty (50) percent of the local area median income. Collier County will
continue to monitor local housing data in an effort to determine if an expanded area of assistance is required.
Dwelling units assisted with NSP Funds shall be rehabilitated to the extent necessary to comply with applicable
laws, codes, and other requirements relating to housing safety, quality, and habitability. Collier County will
encourage rehabilitation that improves the energy efficiency and/or conservation of dwelling units receiving
assistance. Additionally, the County will strongly encourage the incorporation of green building improvements
to provide long -term affordability, increased sustainability and attractiveness of housing and neighborhoods.
C DEFINITIONS AND DESCRIPTIONS
(1) Definition of "blighted structure" in context of state or local law.
Narrative Response:
Blighted structure, as extracted from 2008 Florida Statute 163.340, is defined as a structure that is deteriorated
or deteriorating to the extent that unsanitary or unsafe conditions may threaten the health safety and welfare of
the public. Characteristics include, but are not limited to:
(a) Unsanitary or unsafe conditions;
(b) Deterioration of site or other improvements;
(c) Inadequate provision for ventilation, light, air, sanitation or open spaces;
(d) The existence of conditions that endanger life of property by fire or other causes.
(2) Definition of "affordable rents." Note: Grantees may use the definition they have adopted for their CDBG
program but should review their existing definition to ensure compliance with NSP program — specific
requirements such as continued affordability.
Narrative Response:
The maximum Affordable Rents
U.S. Department of Housing and
are listed below:
1 1H
shall not exceed the Fair Market Rents (FMR) as published annually by the
Urban Development for the Naples — Marco Island MSA. The current rates
Final FY 2012 FMRs By Unit Bedrooms
Minimum period of affordability
Efficiency
I One - Bedroom
Two - Bedroom
Three- Bedroom
Four- Bedroom
Final FY 2012 FMR
$ 813
$ 932
$ 1,049
$ 1,304
$ 1,357
Source: U.S. Department of Housing and Urban Development (2012)
(3) Describe how the grantee will ensure continued affordability for NSP assisted housing.
Narrative Response:
24 CFR 92.252(a), (c), (e), and (f), and 92.254
Homeownership: Long -Term Affordability
The NSP 1- 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 NSP1 funds and the
affordability period that they trigger are described more fully below under "Homeownership: Recapture
Provisions."
Homeownership assistance NSP1 amount per -unit
Minimum period of affordability
in years
Under
5
... ............
$15,000.. ... ...............................
$15,000 to
10
$40, 000 . ............................... .
Over
$40, 000 ............ ............................... .
Homeownership: Recapture Provisions
The recapture provisions will ensure that Collier County, Developer, or Subrecipient recoups all or a portion of
the NSP 1 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 NSP1 funds subject to recapture described above.
Collier County, Developer, or Subrecipient may choose to recapture the entire amount of NSP 1 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:
NSP 1 investment X Net proceeds = NSP 1 amount to County
NSP 1 investment + homeowner investment
homeowner investment X Net proceeds = amount to homeowner
NSP1 investment + homeowner investment
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Collier County, Developer, or Subrecipient may permit the homebuyer to recover the homebuyer's entire
investment (downpayment and capital improvements made by the owner since purchase) before recapturing the
NSP1 investment.
Rental: Long -Term Affordability
The NSP 1- assisted units must meet the affordability requirements for not less than the applicable period
specified below, beginning after project completion. The affordability requirements for NSP 1 -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,
Developer, or Subrecipient will enforce long -term affordability through the use of a recorded lien, covenant, or
deed restriction against the assisted property.
Rental housing activity
Minimum period of affordability
in years
Rehabilitation or acquisition of existing housing per unit
amount of NSP 1 funds: Under
5
$15,000.. ......
......... ...............................
$15,000 to $40,000.. .......... ...............................
10
Over $40,000 or rehabilitation involving
15
refinancing. . ........................ ...............................
New construction or acquisition of newly constructed
20
housing. .
Subsequent rents during the affordability period will be calculated and applied in conformance with 24 CFR
92.252(f).
(4) Describe housing rehabilitation standards that will apply to NSP assisted activities.
Narrative Response:
All NSP 1-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.
(5) Definition of "Middle Income Household"
A household having an income equal to or less than 120% of area median income, but greater than 80% of area
median income, adjusted for household size.
(6) Definition of "Moderate Income Household"
A household having an income equal to or less than 80% of area median income, but greater than 50% of area
median income, adjusted for household size.
(7) Definition of "Low Income Household"
A household having an income equal to or less than 50% of area median income, adjusted for household size.
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(8) Definition of "Current Market Appraised Value"
The current market appraised value means the value of a foreclosed upon home or residential property that is
established through an appraisal made in conformity with the appraisal requirements of the URA at 49 CFR
24.103 and completed within 60 days prior to an offer made for the property by a grantee, subrecipient,
developer, or individual homebuyer.
(9) Definition of "Abandoned"
A home is abandoned when mortgage or tax foreclosure proceedings have been initiated for that property, no
mortgage or tax payments have been made by the property owner for at least 90 days, AND the property has
been vacant for at least 90 days.
(10) Definition of `Blighted Structure"
A structure is blighted when it exhibits objectively determinable signs of deterioration sufficient to constitute a
threat to human health, safety, and public welfare.
(11) Definition of "Foreclosed"
A property "has been foreclosed upon" at the point that, under state or local law, the mortgage or tax
foreclosure is complete. HUD generally will not consider a foreclosure to be complete until after the title for
the property has been transferred from the former homeowner under some type of foreclosure proceeding or
transfer in lieu of foreclosure, in accordance with state or local law.
(12) Definition of "Land Bank"
A land bank is a governmental or nongovernmental nonprofit entity established, at least in part, to assemble,
temporarily manage, and dispose of vacant land for the purpose of stabilizing neighborhoods and encouraging
re -use or redevelopment of urban property. For the purposes of the NSP Program, a land bank will operate in a
specific, defined geographic area. It will purchase properties that have been abandoned or foreclosed upon and
maintain, assemble, facilitate redevelopment of, market, and dispose of the land - banked properties. If the land
bank is a governmental entity, it may also maintain abandoned or foreclosed property that it does not own,
provided it charges the owner of the property the full cost of the service or places a lien on the property for the
full cost of the service.
D. LOWINcomETARGETING
Identify the estimated amount of funds appropriated or otherwise made available under the NSP to be used to
purchase and redevelop abandoned or foreclosed upon homes or residential properties for housing individuals or
families whose incomes do not exceed 50 percent of area median income: $1,827,000.00.
Note: At least 25% of funds must be used for housing individuals and families whose incomes do not exceed 50
percent of area median income.
Narrative Response:
Habitat for Humanity of Collier County, Inc. ( "Habitat for Humanity) has a proven track record of success in
providing homeownership units to households earning less than 50% AMI. As such, Collier County will
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execute a developer agreement with Habitat for Humanity through which households earning less than 50%
AMI will be provided affordable homeownership units.
E. ACQuismom & RELOCATION
Indicate whether grantee intends to demolish or convert any low- and moderate - income dwelling units (i.e., < 80%
of area median income).
If so, include:
• The 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.
• The number of NSP affordable housing units made available to low- , moderate -, and middle- income
households —i.e., _< 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).
• The number of dwelling units reasonably expected to be made available for households whose income
does not exceed 50 percent of area median income.
Narrative Response:
Should the initial inspection and/or rehabilitation work determine that demolition of the dwelling unit is more
cost effective, Collier County or its Developer may chose to demolish the existing unit and either place the site
in the County land bank or construct a new unit on the site. If the cost to rehabilitate the unit is greater than
fifty (50) percent of the acquisition price, and/or the cost of acquisition and rehabilitation exceeds one hundred
(100) percent loan-to- value, the County will consider demolition. Collier County does not intend demolition to
be a major activity in its NSP. Rather, the County reserves the right to demolish an acquired property if deemed
a more fiscally effective use of NSP Funds.
The County shall abide by Uniform Relocation Action (URA) requirements for any affected household where a
housing unit is being demolished that has not been vacant for greater than ninety (90) days. Collier County will
avoid using NSP Funds to acquire homes or residential properties that have been vacant for fewer than ninety
(90) days.
F. PUBLIC COMMENT
G. NSPINFORMATIONBYACTIVITY (COMPLETEFOREACHACTIVITY)
Activity #1 - Acquisition and Rehabilitation of Foreclosed Properties for Resale
(1) Activity Name: Acquisition and Rehabilitation of Foreclosed Properties for Resale
(2) Activity Type: Acquisition and Rehabilitation of Foreclosed Properties for Resale
• Purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed upon,
in order to sell, rent or redevelop such homes and properties;
• 24 CFR 570.201(a) Acquisition;
• 24 CFR 570.201(b) Disposition;
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• 24 CFR 570.201(i) Relocation;
• 24 CFR 570.201(n) Direct homeownership assistance (as modified below);
o 570.202 eligible rehabilitation and preservation activities for homes and other residential
properties (HUD notes that rehabilitation may include counseling for those seeking to take part
in the activity).
(3) National Objective: Provides or improves permanent residential structures that will be occupied by a
household whose income is at or below 120 percent of area median income.
(4) Projected Start Date: February 13, 2009
(5) Projected End Date: February 13, 2014
(6) Responsible Organization: Collier County Department of Housing, Human and Veteran Services; 3339
Tamiami Trail E, Suite 211, Naples, FL 34112. The County may execute a developer agreement to undertake
this Activity.
(7) Location Description: Collier County will assist those areas defined in Section A. Areas of Greatest Need —
Identified Program Target Areas. The County will continue to monitor local foreclosure data and intend the
NSP to be flexible to allow for timely reaction to any significant changes in the local housing market.
(8) Activity Description:
Include a narrative describing the area of greatest need that the activity addresses; the expected benefit to
income - qualified persons; and whether funds used for this activity will be used to meet the low income housing
requirement for those below 50% of area median income.
For housing related activities, include:
• tenure of beneficiaries -- rental or homeownership;
• duration or term of assistance;
• a description of how the design of the activity will ensure continued affordability.
For acquisition activities, include:
• discount rate
For financing activities, include:
• range of interest rates
Narrative Response:
Collier County's Department of Housing, Human and Veteran Services will be the lead agency in working with
local lenders to acquire homes that have been foreclosed, vacant for at least ninety (90) days and on the lender's
list of current inventory. The County may partner with various community organizations and agencies to
identify properties suitable for NSP assistance. Nonprofit and/or charitable organizations, developers, or
subrecipients that demonstrate an ability to successfully undertake NSP projects may be solicited to perform all
or parts of this activity, including, but not limited to, property ownership, rehabilitation, maintenance, and
resale.
The County shall identify properties for sale in the areas of greatest need. If required, a rehabilitation plan shall
be developed and the County and/or housing partners will determine if acquisition of the subject property is
financially feasible.
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Collier County will assist those areas defined in Section A. Areas of Greatest Need — Identified Program Target
Areas.
The purchase price for all properties acquired with NSP Funds during the initial 18 month period shall be
discounted at least one (1) percent from the current market- appraised value of the home or residential property
and that such discount shall ensure that purchasers are paying below - market value for the home or property.
The current market appraisal will be made in conformity with the requirements of the URA at 49 CFR 24.103
and completed within 60 days prior to an offer to purchase made by the County or an approved housing partner.
If required, rehabilitation shall be completed and the subject property will be sold to an income eligible
applicant earning no more than 120% of local area median income. The applicant will procure a fixed -rate
mortgage through the Collier County Loan Consortium, local banks, FHA or USDA. The interest rate shall not
exceed one (1) percent above the then current 60 day Fannie Mae Index. Additionally, no mortgage insurance
is allowed (the only exception being FHA Home Loans), all loans shall be fully documented, no pre - payment
penalties are permitted, closing costs must be reasonable and customary and applicants' total debt -to- income
ratio must be reasonable as determined by the Collier County Department of Housing and Human Services.
All lenders providing first mortgage financing to individuals purchasing homes or residential properties directly
from Collier County, where such property was assisted with NSP Funds agree to comply with the bank
regulators' guidance for non - traditional mortgages. Refer to Statement on Subprime Mortgage Lending issued
by the Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, Federal
Deposit Insurance Corporation, Department of the Treasury, and National Credit Union Administration,
available at http: / /www.fdic.gov /regulations /laws /rules /5000- 5160.html.
A portion of the NSP Funds used in the acquisition and/or rehabilitation may remain in the home or residential
property to provide principal reduction and increase affordability.
The homes targeted for NSP assistance will be properties that have been foreclosed, bank - owned, and vacant for
at least ninety (90) days. The County shall negotiate with local banks to purchase properties at a discount rate
of at least 15 percent from the current market- appraised value. The current market appraisal will be made in
conformity with the requirements of the URA at 49 CFR 24.103 and completed within 60 days prior to an offer
to purchase made by the County or an approved housing partner.
Collier County anticipates that many of the homes or residential properties acquired with NSP Funds will
require rehabilitation and/or improvements to bring the home or residential property into compliance with
current code for Collier County as detailed in Section C of this Substantial Amendment.
Collier County will ensure long term affordability as described in Section (C)(3) of this substantial amendment.
All properties sold to individuals by Collier County receiving assistance from the NSP will be secured by a
recorded second mortgage on the subject property in favor of Collier County. In the event the unit is transferred
to an owner(s) deemed eligible for assistance under NSP guidelines, the amount of assistance will remain in the
subject property to provide principal reduction. In the event the unit is transferred to an owner(s) deemed
ineligible for assistance under NSP guidelines, the amount of assistance will be recaptured. The principal
reduction second mortgage shall bear an interest rate of 0 %. No payment will be required until the home is
sold, transferred, refinanced, is no longer the primary homesteaded residence or is operated for an activity
deemed ineligible for assistance under NSP guidelines. At that time the balance of the loan will be repaid.
The County will use the minimum affordability period of the federal HOME Investment Partnership Program,
24 CFR 92.252(a), (c), (e) and (f), and 92.254. The minimum affordability periods are as follows:
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• Up to $15,000 — 5 Years
• $15,001 to $40,000 —10 Years
• Over $40,001 —15 Years
• New Construction — 20 Years
Applicant(s) will be qualified based on criteria such as household income, job stability, credit history and
liquidity. A minimum of 25 percent of the Collier County NSP Allocation shall be used to assist households
earning less than 50 percent local area median income. In no event shall NSP Funds be used to assist
households earning more than 120 percent local area median income. All applicants must receive at least eight
(8) hours of homebuyer education from a U.S. Department of Housing and Urban Development certified
counselor.
Collier County shall place program income derived from the sale of the home or residential property into an
appropriate fund to recycle the NSP Funds. Program income shall be used for any eligible NSP Activity listed
within this Substantial Amendment, a portion of which may be used for program administration. Pursuant to
HUD NSP Policy Alert "Program Income in the Neighborhood Stabilization Program" dated July 13, 2011,
revenues received by developers are NOT considered program income.
A minimum of 25 percent of the Collier County NSP Allocation shall be used to assist households earning less
than 50 percent local area median income. In no event shall NSP Funds be used to assist households earning
more than 120 percent local area median income.
Activity #2 - Acquisition and Rehabilitation of Foreclosed Properties for Rental
(1) Activity: Acquisition and Rehabilitation of Foreclosed Properties for Rental
(2) Activity Type: Acquisition and Rehabilitation of Foreclosed Properties for Rental
• Purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed upon,
in order to sell, rent or redevelop such homes and properties;
• 24 CFR 570.201(a) Acquisition;
• 24 CFR 570.201(b) Disposition;
• 24 CFR 570.201(i) Relocation;
• 24 CFR 570.201(n) Direct homeownership assistance (as modified below);
o 570.202 eligible rehabilitation and preservation activities for homes and other residential
properties (HUD notes that rehabilitation may include counseling for those seeking to take part
in the activity).
(3) National Objective: Provides or improves permanent residential structures that will be occupied by a
household whose income is at or below 120 percent of area median income.
(4) Projected Start Date: February 13, 2009
(5) Projected End Date: February 13, 2014
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(6) Responsible Organization: Collier County Department of Housing, Human and Veteran Services; 3339
Tamiami Trail E, Suite 211, Naples, FL 34112. The County may solicit developers, or subrecipients to
undertake this Activity.
(7) Location Description: Collier will assist those areas defined in Section A. Areas of Greatest Need —
Identified Program Target Areas. The County will continue to monitor local foreclosure data and intend the
NSP Program to be flexible to allow for timely reaction to any significant changes in the local housing market.
(8) Activity Description:
Include a narrative describing the area of greatest need that the activity addresses; the expected benefit to
income - qualified persons; and whether funds used for this activity will be used to meet the low income housing
requirement for those below 50% of area median income.
For housing related activities, include:
• tenure of beneficiaries -- rental or homeownership;
• duration or term of assistance;
• a description of how the design of the activity will ensure continued affordability.
For acquisition activities, include:
• discount rate
For financing activities, include:
• range of interest rates
Narrative Response:
Collier County's Department of Housing, Human and Veteran Services will be the lead agency in working with
local lenders to acquire homes that have been foreclosed, vacant for at least ninety (90) days and on the lender's
list of current inventory. The County may partner with various community organizations and agencies to
identify properties suitable for NSP assistance. Nonprofit and/or charitable organizations, developers, or
subrecipients that demonstrate an ability to successfully undertake NSP project may be solicited to perform all
or parts of this activity, including, but not limited to, property ownership, rehabilitation, maintenance, and rental
operation.
The County shall identify properties for sale in the areas of greatest need. If required, a rehabilitation plan shall
be developed and the County and/or housing partners will determine if acquisition of the subject property is
financially feasible.
Collier County will assist those areas defined in Section A. Areas of Greatest Need — Identified Program Target
Areas.
The purchase price for all properties acquired with NSP Funds during the initial 18 month period shall be
discounted at least one (1) percent from the current market- appraised value of the home or residential property.
The current market appraisal will be made in conformity with the requirements of the URA at 49 CFR 24.103
and completed within 60 days prior to an offer to purchase made by the County or an approved housing partner.
If required, rehabilitation shall be completed and the subject property will be rented to an income eligible
applicant earning no more than 120% of local area median income.
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Collier County anticipates that many of the homes or residential properties acquired with NSP Funds will
require rehabilitation and/or improvements to bring the home into compliance current code for Collier County
as detailed in Section C of this Substantial Amendment.
Collier County will ensure long term affordability as described in Section (C)(3) of this substantial amendment.
The County will use the minimum affordability period of the federal HOME Investment Partnership Program,
24 CFR 92.252(a), (c), (e) and (f), and 92.254. The minimum affordability periods are as follows:
• Up to $15,000 — 5 Years
• $15,001 to $40,000— 10 Years
• Over $40,001 -15 Years
• New Construction — 20 Years
A portion of the NSP Funds used in the acquisition and/or rehabilitation may remain in the home or residential
property to provide a subsidy to the developer, or subrecipient and increase the subject property's affordability.
Collier County shall place program income derived from the rental operations of the home or residential
property into a separate revolving fund to recycle the NSP Funds. Program income shall be used for any
eligible NSP Activity listed within this Substantial Amendment, a portion of which may be used for program
administration. Pursuant to HUD NSP Policy Alert "Program Income in the Neighborhood Stabilization
Program" dated July 13, 2011, revenues received by developers are NOT considered program income.
A minimum of 25 percent of the Collier County NSP Allocation shall be used to assist households earning less
than 50 percent local area median income. In no event shall NSP Funds be used to assist households earning
more than 120 percent local area median income.
Activity #3 — Purchase Assistance to Acquire Foreclosed Properties
(1) Activity Name: Purchase Assistance to Acquire Foreclosed Properties
(2) ActivitTyne: Purchase Assistance to Acquire Foreclosed Properties
• Purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed upon,
in order to sell, rent or redevelop such homes and properties;
• 24 CFR 570.201(a) Acquisition;
• 24 CFR 570.201(b) Disposition;
• 24 CFR 570.201(i) Relocation;
• 24 CFR 570.201(n) Direct homeownership assistance (as modified below);
o 570.202 eligible rehabilitation and preservation activities for homes and other residential
properties (HUD notes that rehabilitation may include counseling for those seeking to take part
in the activity).
(3) National Objective: Provides or improves permanent residential structures that will be occupied by a
household whose income is at or below 120 percent of area median income.
(4) Projected Start Date: February 13, 2009
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(5) Projected End Date: February 13, 2014
(6) Responsible Organization: Collier County Department of Housing, Human and Veteran Services; 3339
Tamiami Trail E, Suite 211, Naples, FL 34112. The County may solicit through Requests for Qualifications
and/or Requests for Proposals organizations /partners to participate in the program.
(7) Location Description: Collier County will assist those areas defined in Section A. Areas of Greatest Need —
Identified Program Target Areas. The County will continue to monitor local foreclosure data and intend the
NSP Program to be flexible to allow for timely reaction to any significant changes in the local housing market.
(8) Activity Description:
Include a narrative describing the area of greatest need that the activity addresses; the expected benefit to
income - qualified persons; and whether funds used for this activity will be used to meet the low income housing
requirement for those below 50% of area median income.
For housing related activities, include:
• tenure of beneficiaries -- rental or homeownership;
• duration or term of assistance;
• a description of how the design of the activity will ensure continued affordability.
For acquisition activities, include:
• discount rate
For financing activities, include:
• range of interest rates
Narrative Response:
Collier County's Department of Housing and Human Services will be the lead agency in working with local
residents to acquire homes that have been foreclosed, vacant for at least ninety (90) days and on the lender's list
of current inventory. The County may partner with various community organizations and agencies to assist
persons locate properties suitable for NSP assistance. Nonprofit and/or charitable organizations with a proven
track record of successfully implementing this activity, as well as administering U.S. Department Housing and
Urban Development grant funds, may be solicited to perform all or parts of this activity.
The Purchase Assistance Activity shall assist first -time homebuyers by paying a principal reduction for the
proposed purchase. The activity provides assistance for the purchase of single family homes, duplexes,
condominiums, townhouses or DCA approved manufactured homes.
Collier County will assist those areas defined in Section A. Areas of Greatest Need — Identified Program Target
Areas.
The purchase price for all properties acquired with NSP Funds during the initial 18 month period shall be
discounted at least one (1) percent from the current market- appraised value of the home or residential property.
The current market appraisal will be made in conformity with the requirements of the URA at 49 CFR 24.103
and completed within 60 days prior to an offer to purchase made by the applicant. All households assisted musl
earn no more than 120 percent of the local area median income.
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The applicant will procure a fixed -rate mortgage through the Collier County Loan Consortium, local banks,
FHA or USDA. The interest rate shall not exceed one (1) percent above the then current 60 day Fannie Mae
Index. Additionally, no mortgage insurance is allowed (the only exception being FHA Home Loans), all loans
shall be fully documented, no pre - payment penalties are permitted, closing costs must be reasonable and
customary and applicants' total debt -to- income ratio must be reasonable as determined by the Collier County
Department of Housing and Human Services. All applicants must receive at least eight (8) hours of homebuyer
education from a U.S. Department of Housing and Urban Development certified counselor.
All lenders providing first mortgage financing for homes or residential properties assisted with NSP Funds
agree to comply with the bank regulators' guidance for non - traditional mortgages. Refer to Statement on
Subprime Mortgage Lending issued by the Office of the Comptroller of the Currency, Board of Governors of
the Federal Reserve System, Federal Deposit Insurance Corporation, Department of the Treasury, and National
Credit Union Administration, available at http: / /www.fdic.gov /regulations /laws /rules /5000- 5160.html.
Collier County will ensure long term affordability though the use of a recorded lien against the property. The
County will monitor assisted units on an annual basis during the affordability period. Additionally, all
properties receiving assistance from the NSP will be secured by a recorded second mortgage on the subject
property in favor of Collier County.
The purchase assistance second mortgage shall bear an interest rate of 0 %. No payment will be required until
the home is sold, transferred, refinanced, is no longer the primary homesteaded residence or is operated for an
activity deemed ineligible for assistance under NSP guidelines. At that time the balance of the loan will be
repaid.
All applicants will be taken on a first- come - first- served basis. Applicants must meet NSP income guidelines, as
well as the following: applicant must be a first time home buyer, defined as not having home ownership interest
in a residential property during the past three (3) years, a single parent with children under the age of eighteen
(18) who has recently been divorced and displaced, a displaced victim of domestic violence, or a person
displaced as the result of some government action; the assisted residential property must be located within the
boundaries of Collier County, Florida and the purchase price may not exceed $200,000.
The County will use the minimum affordability period of the federal HOME Investment Partnership Program,
24 CFR 92.252(a), (c), (e) and (f), and 92.254. The minimum affordability periods are as follows:
• Up to $15,000 — 5 Years
• $15,001 to $40,000 —10 Years
• Over $40,001 —15 Years
• New Construction — 20 Years
Collier County shall place program income derived from the sale of the home or residential property into a
separate revolving fund to recycle the NSP Funds. Program income shall be used for any eligible NSP Activity
listed within this Substantial Amendment, a portion of which may be used for program administration.
In no event shall NSP Funds be used to assist households earning more than 120 percent local area median
income. All applicants must receive at least eight (8) hours of homebuyer education from a U.S. Department of
Housing and Urban Development certified counselor.
Activity 94 — Demolition of Acquired Foreclosed Properties
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(1) Activity Name: Demolition of Acquired Foreclosed Properties
(2) Activity Tyne: Demolition and Clearance of Foreclosed Properties
• Demolish blighted structures;
• 24 CFR 570.201(d) Clearance for blighted structures only.
(3) National Objective: Provides or improves permanent residential structures that will be occupied by a
household whose income is at or below 120 percent of area median income.
(4) Projected Start Date: February 13, 2009
(5) Projected End Date: February 13, 2014
(6) Responsible Organization: Collier County Department of Housing, Human and Veteran Services; 3339
Tamiami Trail E, Suite 211, Naples, FL 34112. The County may execute a developer agreement to undertake
this Activity.
(7) Location Description: Collier County will assist those areas defined in Section A. Areas of Greatest Need —
Identified Program Target Areas. The County will continue to monitor local foreclosure data and intend the
NSP Program to be flexible to allow for timely reaction to any significant changes in the local housing market.
(8) Activity Description:
Include a narrative describing the area of greatest need that the activity addresses; the expected benefit to
income - qualified persons; and whether funds used for this activity will be used to meet the low income housing
requirement for those below 50% of area median income.
For housing related activities, include:
• tenure of beneficiaries -- rental or homeownership;
• duration or term of assistance;
• a description of how the design of the activity will ensure continued affordability.
For acquisition activities, include:
• discount rate
For financing activities, include:
• range of interest rates
Narrative Response:
Homes or residential properties acquired through the NSP that are not economically feasible to rehabilitate,
pose a health threat or pose safety threat, may be demolished. Demolished properties may be placed in a land
bank maintained by Collier County or provided to a local nonprofit provider of affordable housing.
Additionally, NSP Funds may be used to construct a new home on the site.
Collier County will assist those areas defined in Section A. Areas of Greatest Need — Identified Program Target
Areas.
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If the cost to rehabilitate the unit is greater than fifty (50) percent of the acquisition price, and/or the cost of
acquisition and rehabilitation exceeds one hundred (100) percent loan-to -value, the County will consider
demolition. Collier County does not intend demolition to be a major activity in its NSP. Rather, the County
reserves the right to demolish an acquired property if deemed a more fiscally effective use of NSP Funds.
The County shall abide by Uniform Relocation Action (URA) requirements for any affected household where a
housing unit is being demolished that has not been vacant for greater than ninety (90) days. Collier County will
avoid using NSP Funds to acquire homes or residential properties that have been vacant for fewer than ninety
(90) days.
Should Collier County or its housing partner construct a new unit on the site, such activity shall be governed by
NSP guidelines as discussed in Activity #1 - Acquisition and Rehabilitation of Foreclosed Properties for Resale.
Additionally, all households assisted must earn no more than 120 percent of the local area median income.
The County will use the minimum affordability period of the federal HOME Investment Partnership Program,
24 CFR 92.252(a), (c), (e) and (f), and 92.254. The minimum affordability periods are as follows:
• Up to $15,000 — 5 Years
• $15,001 to $40,000 —10 Years
• Over $40,001 — 15 Years
• New Construction — 20 Years
Collier County shall place program income derived from the sale of the home or residential property into a
separate revolving fund to recycle the NSP Funds. Program income shall be used for any eligible NSP Activity
listed within this Substantial Amendment, a portion of which may be used for program administration.
Activity #5 — Land Banking of Acquired Properties
(1) Activity Name: Land Banking of Acquired Properties
(2) Activity Type: Land Banking of Acquired Properties
Establish land banks for homes that have been foreclosed upon;
24 CFR 570.201(a) Acquisition;
24 CFR 570.201(b) Disposition.
(3) National Objective: Provides or improves permanent residential structures that will be occupied by a
household whose income is at or below 120 percent of area median income.
(4) Projected Start Date: February 13, 2009
(5) Projected End Date: February 13, 2014
(6) Responsible Organization: Collier County Department of Housing, Human and Veteran Services; 3339
Tamiami Trail E, Suite 211, Naples, FL 34112. The County may execute a developer agreement to undertake
this Activity.
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(7) Location Description: Collier County will assist those areas defined in Section A. Areas of Greatest Need —
Identified Program Target Areas. The County will continue to monitor local foreclosure data and intend the
NSP Program to be flexible to allow for timely reaction to any significant changes in the local housing market.
(8) Activity Description:
Include a narrative describing the area of greatest need that the activity addresses; the expected benefit to
income - qualified persons; and whether funds used for this activity will be used to meet the low income housing
requirement for those below 50% of area median income.
For housing related activities, include:
• tenure of beneficiaries -- rental or homeownership;
• duration or term of assistance;
• a description of how the design of the activity will ensure continued affordability.
For acquisition activities, include:
• discount rate
For financing activities, include:
• range of interest rates
Narrative Response:
Collier County may acquire properties that have been foreclosed and/or vacant for at least ninety (90) days and
are on the lender's list of current inventory to be placed in a land bank. The purchase price for all properties
acquired with NSP Funds during the initial 18 month period shall be discounted at least one (1) percent from the
current market- appraised value of the home or residential property. The current market appraisal will be made
in conformity with the requirements of the URA at 49 CFR 24.103 and completed within 60 days prior to an
offer to purchase made by the County or an approved housing partner. The County may partner with various
community organizations and partners to identify properties suitable for NSP land banking. Properties acquired
through this NSP Program for the purpose of being placed in a land bank may be demolished as discussed in
Activity #5 - Demolition of Acquired Foreclosed Properties.
Collier County will assist those areas defined in Section A. Areas of Greatest Need — Identified Program Target
Areas.
Collier County will ensure long term affordability as described in Section (C)(3) of this substantial amendment.
All NSP 1- 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.
The County will use the minimum affordability period of the federal HOME Investment Partnership Program,
24 CFR 92.252(a), (c), (e) and (f), and 92.254. The minimum affordability periods are as follows:
• Up to $15,000 — 5 Years
• $15,001 to $40,000 —10 Years
• Over $40,001 —15 Years
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• New Construction — 20 Years
A minimum of 25 percent of the Collier County NSP Allocation shall be used to assist households earning less
than 50 percent local area median income. In no event shall NSP Funds be used to assist households earning
more than 120 percent local area median income.
An NSP- assisted property may not be held in a land bank for more than ten (10) years without obligating the
property for a specific, eligible redevelopment of that property in accordance with NSP requirements.
Collier County shall place program income derived from the sale of the home or residential property into an
appropriate fund to recycle the NSP Funds. Program income shall be used for any eligible NSP Activity listed
within this Substantial Amendment, a portion of which may be used for program administration. Pursuant to
HUD NSP Policy Alert "Program Income in the Neighborhood Stabilization Program" dated July 13, 2011,
revenues received by developers are NOT considered program income.
I. Total Budget: $7,306,755
Narrative Response:
Refer to Exhibit "A ".
The U.S. Department of Housing and Urban Development allows up to 10 percent of the NSP grant provided to
Collier County and up to 10 percent of program income earned for general administration and planning
activities as those are defined at 24 CFR 570.205 and 206. The 10 percent limitation applies to the grant as a
whole. Additionally, HUD recognizes the need to move forward rapidly to prepare this substantial amendment
and to undertake other administrative actions. Therefore HUD has granted permission to incur pre -award costs
effective September 29, 2008 in preparation of the substantial amendment.
J. Performance Measures (e.g., units of housing to be acquired, rehabilitated, or demolished for the income
levels of households that are 50 percent of area median income and below, 51 -80 percent, and 81 -120 percent):
Narrative Response:
Collier County shall include performance measures in all agreements with local partners contracted with to
implement activities described in this Substantial Amendment. Such measures shall ensure funds are expended
within the initial NSP required 18 -month time period. Collier County shall monitor all progress to ensure the
housing activities listed in this amendment are completed in a timely manner and local benefit achieved as soon
as possible.
Collier County estimates the total number of units assisted with the initial $7,306,755 allocation to be 59. As
assisted units are sold or transferred, program income shall return to the County. The County may use the
program income received for any activities listed in this substantial amendment, a portion of which may be used
for program administration. The following is a list, by income level, of total units of housing to be assisted with
NSP Funds:
Low Income — households earning 50% of area median income or less;
o 15 units
• Moderate Income —households earning between 51% and 80% area median income;
o 22 units
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Middle Income — households earning between 81 % and 120% area median income;
o 22 units
Summary of Projected Number of Units Assisted
Activity
Type
Low
Income
Moderate
Income
Middle
Income
Acquisition for Resale
3
13
13
Acquisition for Rental
12
2
2
Direct Assistance
0
3
3
Demolition
0
3
3
Land Banking
0
1
1
Total
15
22
22
I 1H
Zu 1 '
The Collier County Neighborhood Stabilization Program Substantial Amendment is adopted this 4i ay of C�
February, 2012.
ATTEST:
DWIGHT E. IAROCK; Cft9K
BY:
CLERK
APPROVED AS TO FORM
AND LEGAL SUFFICIENCY
BY:
JENNIFER WHITE
ASSISTANT COUNTY ATTORNEY
BOARD OF COUNTY COMMISSIONERS
COLLIER COUNTY, FLORIDA
BY: ZI28 /�j�
FRED W. COYLE, CHAI N
Item # ! .1._lM-J---
Agenda
Date
Date 3
Redd
I �
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