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Agenda 03/24/2009 Item #10E Agenda Item No. 10E March 24, 2009 Page 1 of 7 EXECUTIVE SUMMARY Recommendation that the Board of County Commissioners approves, and authorizes the Chairman to sign an agreement with the U.S. Department of Housing and Urban Development to accept entitlement funding for the Neighborhood Stabilization Program in the amount of $7,306,755, and approve a budget amendment to allocate the funding. OBJECTIVE: That the Board of County Commissioners (Board) approves, and authorizes the Chairman to sign, the attached U.S. Department of Housing and Urban Development (HUD) entitlement funding agreement for the Neighborhood Stabilization Program (NSP) for FY 2008- 2009 and approve the necessary budget amendment to authorize expenditures. Acceptance of this award will provide $7,306,755 in funding for Collier County. CONSIDERATIONS: On April 22, 2008, the Board adopted Resolution No. 2008-121, approving the submission of the Collier County annual Action Plan to the U.S. Department of Housing and Urban Development. The annual Action Plan provided guidance for the expenditure of $3,089,38 I .00 in federal entitlement funding for FY 2008-2009. ~ On July 30, 2008, President Bush signed into law the Housing and Economic Recovery Act of 2008 (HERA). The Act provides emergency assistance for the redevelopment of abandoned and foreclosed residential structures. The Secretary of HUD established a formula for the distribution of the $3.92 billion dollar appropriation. This formula included the number of foreclosures within the jurisdiction, the risk of increase in foreclosures in the following eighteen (18) months and the percentage of homes financed with subprime mortgage related instruments. On September 29, 2008, HUD sent notification that $7,306,755 in NSP funding had been allocated to Collier County under the NSP Program. Each jurisdiction was tasked with providing a substantial amendment to their FY 2008-2009 Action Plans to recognize the newly allocated funding. On November 18,2008, under agenda item 16D3, the Board approved the substantial amendment which was submitted and accepted by HUD with minor changes. The substantial amendment contains strategies to use NSP funds for the acquisition, rehabilitation and resale or rent of foreclosed and abandoned residential structures in Collier County. Additionally, the amendment provided strategies for purchase assistance for applicants acquiring bank-owned properties, demolition of blighted structures, new construction and the opportunity to land bank acquired properties for future redevelopment. The proposed budget is as follows: - COLLIER COL'1\'TY NSP Al.LOCA TlO:'\ S 'i.~06.~55.00 Amount by 50%, AlII and Below 51'% 110%A1\II Tot:d br Artidn' Amount Amount Aetidt,. Plannin~ aud Admiui.~tnltion $ 730.67500 S \ . S 730.675.00 ACOImtlon nnd R.ehabditatiou cofFor~do~d Pt0p~lie~ for ~~/IIl:' $ 3.980.684.00 $ 796.60400 $ 3.1S4.08f.i.OO $ 3.980.684.00 Ac"'ui~tiOll alld R~habi1itation ofForer:lo"e-d Properties for Remal S 1,745.396.00 S _.__1..:030,3%f!~ S 71 ~ .DOO.OO S 1,/45396.00 Direct Home-buyer A....i:;tanc~ to ACQUIre Foreclosed ?roo~ni" S 400,000.00 $ S '-100000.00 S 400.00000 Demolition of Acnuu-t'd Foredo~ed Propel1l~~ S 100.000.00 S S lOn.OOO.OO S 100,000.00 Land Baukiwz of PrOl;)emt'!. S 350.000.00 S S 350.00000 S 350.000.00 TOTALS S 7,306,-~~.OO S 1.827.000.00 S 4,":49.080.00 S 7,306,755.00 PERCE~TAGE OF TOTAL ALLOCATIO~ 25.00%. 65.00"r. FISCAL IMPACT: The acceptance of this grant agreement totaling $7,306,755 will allow the Department of Housing and Human Services to administer, implement and monitor the Agenda Item NO.1 OE March 24, 2009 Page 2 of? strategies detailed in the substantial amendment to the Collier County annual Action Plan adopted by the Board on November 18,2008. Acceptance of this grant agreement will have no additional effects on ad valorem or general fund dollars. GROWTH MANAGEMENT IMP ACT: Acceptance and implementation of this grant agreement will further the goals, objectives and policies of the Growth Management Plan's Housing Element. LEGAL CONSIDERATIONS: This item has been reviewed and approved by the County Attorney's Office. This item is not quasi judicial, and as such ex parte disclosure is not required. This item requires majority vote only. This item is legally sufficient for Board action. -CMG STAFF RECOMMENDATION: That the Board of County Commissioners approves, and authorizes the Chairman to sign, the attached U.S. Department of Housing and Urban Development entitlement funding agreement for the Neighborhood Stabilization Program for FY 2008-2009 and approve the necessary budget amendment.. PREPARED BY: Marcy Krumbine, Director, Housing and Human Services .. Agenda Item No. 10E March 24, 2009 Page 3 of 7 FUNDING APPROVAL AND GRANT AGREEMENT FOR NEIGHBORHOOD STABILIZATION PROGRAM (NSP) FUNDS AS AUTHORIZED AND APPROPRIATED UNDER THE HOUSING AND ECONOMIC RECOVERY ACT OF 2008 (PUBLIC LAW 110-289, JULY 30, 2008) NSP GRANTEE: Collier County NSP GRANT NUMBER: B.08-UN.12.0003 NSP GRANT AMOUNT: $7,306,755 NSP APPROVAL DATE: January 30, 2009 This Grant Agreement between the Department of Housing and Urban Development (HUD) and Collier County is made pursuant to the authority of sections 2301 - 2304 of the Housing and Economic Recovery Act of 2008 (Public Law I 10-289 (July 30, 2008)) (HERA). The program established pursuant to section 2301-2304 is known as the "Neighborhood Stabilization Program" or "NSP." The Notice of Allocations, Application Procedures, Regulatory Waivers Granted to and Alternative Requirements for Redevelopment of Abandoned and Foreclosed Homes Under the Housing and Economic Recovery Act, 2008 published at 73 FR 58330 (October 6,2008) (Notice); HERA; the Grantee's submission for NSP assistance (Grantee Submission); the HUD regulations at 24 CFR Part 570 (as modified by the Notice and as now in effect and as may be amended from time to time) (Regulations); and this Funding Approval, including any special conditions, constitute part of the Grant Agreement. Subject to the provisions of this Grant Agreement, HUD will make NSP Grant Funds in the amount of $7,306,755 available to the Grantee upon execution of this Grant Agreement by the parties. The Grantee shall have 18 months from the date of HUD's execution of this Grant Agreement to obligate the NSP Grant Amount pursuant to the requirements of HERA and the Notice. The Grantee shall have 48 months from the date of HUD's execution of this Grant Agreement to expend the NSP Grant Amount pursuant to the requirements of the Notice. The NSP Grant Funds may be used to pay eligible costs arising from eligible uses incurred after the NSP Approval Date provided the activities to which such costs are related are carried out in compliance with all applicable requirements. Pre-award planning and general administrative costs may not be paid with funding assistance except as permitted in the Notice; the Notice limits such costs to those incurred on or after September 29, 2008. Other pre-award costs may not be paid with funding assistance except as permitted by 24 CFR 570.200(h); for purposes of NSP, such costs are limited to those incurred on or after the date that the NSP substantial amendment was received by HUD. Agenda Item No.1 OE March 2422009 Page 4 of 7 The Grantee agrees to assume all of the responsibilities for environmental review, decisionmaking, and actions, as specified and required in regulations issued by the Secretary pursuant to Section I04(g) of Title I of the Housing and Community Development Act, as amended (42 U.S.c. 5304) and published in 24 CFR Part 58. The Grantee further acknowledges its responsibility for adherence to the Grant Agreement by sub-recipient entities to which it makes funding assistance hereunder available. This Grant Agreement may be amended only with the prior written approval of HUD. In considering proposed amendments to this Grant Agreement, HUD shall review, among other things, whether the amendment is otherwise consistent with HERA, the Notice, and the Regulations. The Grantee may amend its Grantee Submission; however, such amendments, induding substantial amendments as defined in 24 CFR Part 91, will be subject to the requirements of 24 CFR Part 91 (or any successor regulation) and any revisions HUD may make to the Notice (or any successor Notice or regulation). The Grantee shall at all times maintain an up-to-date copy of its Grantee Submission, including all amendments approved by HUD, on its Internet website as required by the Notice. Further, the Grantee shall maintain information on all drawdowns, deposits, and expenditures of grant funds and program income under this Funding Approval and Grant Agreement and any other records required by 24 CPR 570.506, in its files and shall make such information available for audit or inspection by duly authorized representatives ofHUD, HUD's Office of the Inspector General, or the Comptroller General of the United States. The Grantee shall submit information on performance measurement as established by the Secretary for activities undertaken with NSP grant funds. The Grantee is advised that providing false, fictitious or misleading information with respect to NSP Grant Funds may result in criminal, civil or administrative prosecution under 18 USC Sl00l, 18 USC S1343, 31 USC S3729, 31 USC 93801 or another applicable statute. Close-out of this grant shall be subject to the provisions of 24 CFR 570.509 or such close-out instructions as may hereafter be issued by HUD specifically for NSP grants. Special Conditions are attached to this Grant Agreement. Agenda Item NO.1 OE March 2432009 Page 5 of 7 This NSP Grant Agreement is binding with respect to HUD in accordance with its terms upon the execution by HUD in the space provided above, subject to execution on behalf of the Grantee. The United States Department of Housing and Urban Development Collier County -~ Signature of Authorized Official Signature of Authorized Offical Maria R. Ortiz Name of Authorized Official OCNNA FIAIA Name of Authorized Official Director. CPD Title of Authorized Official GlAm14N Title of Authorized Official '- 3~ V --Of Date of Signature MAROJ 74, )('{'f:) Date of Signature 59-fiXXl558 Grantee Tax Identification Number For HUD CFO Use Onlv Current Balances Increase&n)ecreases Ending Balance Date Approved as to form & legal sufficiency QMPMM ~ Colleen'Greene, Assistant County Attorney ATTEST: DWIGHT E. BROCK. Clerk By: " Agenda Item No.1 OE March 24, 2009 Page 6 of 7 Special Conditions to Funding Approval and Grant Agreement For Neighborhood Stabilization Program (NSP) Funds as Authorized and Appropriated by under the Housing and Economic Recovery Act of 2008 (Public Law 110-289, July 30, 2008) NSP Grantee: Collier County NSP Grant Number B-08-UN-I2-0003 NSP Grant Amount: $7,306,755 NSP Approval Date: January 30, 2009 Special Conditions: I. Pursuant to 24 CFR 85.12 (a)(I)(2)(4) or (5), a special condition applies to this Grant Agreement due to past performance with the County's timeliness ratio in the CDBG program. The County did not meet the CDBG timeliness requirement in FY 2008. The County was required to have no more than 1.5 years of funding available in its CDBG line of credit at the end of the 10th month of its program year. The balance as of May 2, 2008 was $4,695,973 which represents 1.96 years of funding. It appears that the County not being able to draw down in a timely manner stems, in part, from undertaking several ineligible activities and experiencing delays with approvalslreimbursements for other County Departments. The County shall submit documentation describing how past CDBG performance issues have been resolved or are now being resolved and explaining how they will not impact the administration of the NSP program. If the County fails to submit such documentation within 60 days from the date HUD signed this Grant Agreement, HUD may thereafter withhold authority to incur additional obligations of NSP Grant Funds or take other actions authorized under 24 CFR 85.l2(b). 2. Pursuant to 24 CFR 85.12 (a)(3), a special condition applies to this Grant Agreement due to the size of the NSP Grant Amount relative to your 2008 CDBG grant. Within 60 days of the date HUD signed this grant agreement, the County must submit a management plan that describes how it has determined that it possesses adequate staff and other resources necessary to administer NSP grant funds. If the County fails to submit this plan within 60 days, HUD may thereafter withhold authority to incur additional obligations of NSP Grant Funds. c Page I of I Agenda Item No.1 OE March 24, 2009 Page 7 of 7 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS Item Number: Item Summary: 10E Recommendation that the Board of County Commissioners approves, and authorizes the Chairman to sign, the attached U.S. Department of Housing and Urban Development entitlement funding agreement for the Neighborhood Stabilization Program for FY 2008-2009 providing $7,306,755 in funding for Collier County. (Marcy Krumbine, Housing and Human Services Director) Meeting Date: 3/24/2009900.00 AM Approved By Colleen Greene Assistant County Attomer Date County Attorney County Attorney Office 3/6/20093:18 PM Approved By Jeff Klatzkow Assistant County Attorney Date County Attorney County Attorney Office 3/11/2009 4:56 PM Approved By Marla Ramsey Public Services Administrator Date Public Services Public Services Admin. 3/12/2009 4:08 PM A pproved By OMS Coordi nator OMS Coordinator Date County Manager's Office Office of Management & Budget 3/13/2009 9:03 AM Approved By Sherry Pryor Management & Budget Analyst Date County Manager's Office Office of Management & Budget 3/16/200912:22 PM Approved By James V. Mudd County Manager Date Board of County Commissioners County Manager's Office 3/16/2009 1 :30 PM