Agenda 06/11/2019 Item #16D10 (Satisfaction of Mortgage)06/11/2019
EXECUTIVE SUMMARY
Recommendation to accept release of a State Housing Initiatives Partnership mortgage prior to the
expiration of the term of the mortgage and authorize the Chairman to execute a Satisfaction of
Mortgage for a home destroyed by fire and held affordable for seventeen (17) years.
OBJECTIVE: To provide financial relief to the Poole family.
CONSIDERATIONS: The William E. Sadowski Affordable Housing Act provides funding to local
communities to promote and advance affordable housing initiatives. Funds are generated through
documentary stamp tax on real estate transactions. Under the State Housing Initiatives (SHIP) Program,
Collier County and the City of Naples receive funds from the State of Florida through the Florida
Housing Finance Corporation (FHFC) to undertake eligible activities.
On July 30, 2002, James & Filomena Poole executed a Second Mortgage in favor of Collier County
against their home at 3100 Polly Avenue, Naples, FL 34112 in the amount of $15,000. The funds were
used for repairs made to their home under the SHIP Owner Occupied Rehabilitation Program. In the early
morning hours of January 2, 2019, the home in question was completely destroyed by a fire.
Also, as a condition of the SHIP mortgage, the property was required to be insured against hazards
throughout the 20-year term of the mortgage. Sometime prior to this incident, Mr. & Mrs. Poole had
allowed their insurance coverage to lapse due to financial hardship. Consequently, Collier County was not
notified of the lapse in coverage. CHS staff instituted a procedure several years ago (subsequent to the
execution of the Poole’s mortgage) requiring all insurance policies to name Collier County as an
additional insured.
At the time that the Poole’s received their SHIP assistance, the program used a mortgage with a 20-year
term with no forgiveness proration. The current SHIP Owner Occupied Rehabilitation program uses a 15-
year mortgage that is forgiven by one-third every five (5) years, so as to be completely forgiven at the end
of the 15-year period. The Poole’s mortgage is now seventeen (17) years into its twenty (20) year term.
Mr. & Mrs. Poole contacted the Community & Human Services (CHS) Division in March 2019 to seek
relief from their SHIP mortgage. After multiple correspondences, on April 3, 2019, CHS staff, along with
a local not-for-profit housing provider, met with the Poole family to present the following options, in an
attempt to bring resolution to this issue:
1. The land would continue to be owned by the Poole's. A not-for-profit housing provider is willing
to work with Mr. & Mrs. Poole to see if they qualify for a zero percent (0%) mortgage to build a
new home on the Poole’s property with funding previously awarded through the Collier County
SHIP New Construction Assistance Program.
2. The land could be sold, and the total $15,000 outstanding balance of the mortgage repaid to
Collier County from the proceeds of the sale.
3. The land could be sold, and the Poole’s could request relief based on their hardship, and that their
outstanding mortgage balance be reduced.
4. The land would be sold by the Poole’s. The Poole’s could request a release of the mortgage in its
entirety, to be considered by the Board of County Commissioners (Board).
On May 15, 2019 Mrs. Poole, contacted CHS staff and stated she was not interested in any option other
than full forgiveness of the loan which is #4 above. The Pools desire to sell the property. All other
options would be a financial hardship to the family.
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06/11/2019
On March 25, 2019, CHS staff consulted with Florida Housing Coalition (FHC) on the allowability of
forgiveness. FHC staff confirmed that forgiveness of the mortgage is at the discretion of the County.
After much consideration and consultation, staff recommends forgiveness of the Poole’s SHIP mortgage
to align it with the term (15 years) of current SHIP mortgages and to relieve the hardship repayment poses
to the Poole family.
FISCAL IMPACT: There is no Fiscal impact associated with the Release of Lien. The $10 recor ding
fee will be paid by SHIP Grant Fund (791), Project 33569.
LEGAL CONSIDERATIONS: The Second Mortgage has approximately three years remaining in its
term. With this said Florida Housing Finance, the grantor agency, has no issue with release of the
mortgage as stated in the e-mail made back up to this item.
The Board has two options: it may either approve the release or wait until the property is sold and require
that the Second Mortgage be paid at closing consistent with its terms. As such, this Item has been
approved for form and legality and requires a majority vote for Board approval. -JAB
GROWTH MANAGEMENT IMPACT: None.
RECOMMENDATION: To release the State Housing Initiatives Partnership mortgage and authorize
the Chairman to execute a Release of Lien for grant recipients Mr. & Mrs. James Poole.
Prepared By: Don Luciano, Grants Coordinator, Community and Human Services Division
ATTACHMENT(S)
1. Poole SHIP Mortgage - July 2002 (PDF)
2. Release of Lien Poole (PDF)
3. RE FHFC Email- Poole (PDF)
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06/11/2019
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.D.10
Doc ID: 9045
Item Summary: Recommendation to accept release of a State Housing Initiatives Partnership
mortgage and authorize the Chairman to execute a Satisfaction of Mortgage for a home dest royed by fire
and held affordable for seventeen (17) years.
Meeting Date: 06/11/2019
Prepared by:
Title: – Community & Human Services
Name: Donald Luciano
05/20/2019 1:47 PM
Submitted by:
Title: Manager - Federal/State Grants Operation – Community & Human Services
Name: Kristi Sonntag
05/20/2019 1:47 PM
Approved By:
Review:
Community & Human Services Maggie Lopez Additional Reviewer Completed 05/20/2019 3:09 PM
Community & Human Services Leslie Davis Additional Reviewer Completed 05/20/2019 3:52 PM
Community & Human Services Kristi Sonntag CHS Review Completed 05/20/2019 4:52 PM
Community & Human Services Cormac Giblin Additional Reviewer Completed 05/21/2019 10:05 AM
Public Services Department Kimberley Grant Level 1 Reviewer Completed 05/21/2019 2:40 PM
Community & Human Services Lisa Carr Additional Reviewer Completed 05/21/2019 5:05 PM
Public Services Department Todd Henry Level 1 Division Reviewer Completed 05/22/2019 12:28 PM
Grants Erica Robinson Level 2 Grants Review Completed 05/22/2019 3:01 PM
Public Services Department Steve Carnell Level 2 Division Administrator Review Completed 05/28/2019 9:30 AM
County Attorney's Office Jennifer Belpedio Level 2 Attorney of Record Review Completed 05/31/2019 2:58 PM
Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 05/31/2019 3:11 PM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 05/31/2019 4:34 PM
Grants Therese Stanley Additional Reviewer Completed 06/01/2019 8:35 AM
Budget and Management Office Ed Finn Additional Reviewer Completed 06/02/2019 12:25 PM
County Manager's Office Heather Yilmaz Level 4 County Manager Review Completed 06/03/2019 12:35 PM
Board of County Commissioners MaryJo Brock Meeting Pending 06/11/2019 9:00 AM
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Packet Pg. 1464 Attachment: Poole SHIP Mortgage - July 2002 (9045 : Poole SHIP Mortgage)
16.D.10.a
Packet Pg. 1465 Attachment: Poole SHIP Mortgage - July 2002 (9045 : Poole SHIP Mortgage)
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Packet Pg. 1466 Attachment: Poole SHIP Mortgage - July 2002 (9045 : Poole SHIP Mortgage)
16.D.10.bPacket Pg. 1467Attachment: Release of Lien Poole (9045 : Poole SHIP Mortgage)
From:Aida Andujar
To:CarrLisa
Cc:SonntagKristi
Subject:RE: LHAP Requirement
Date:Wednesday, March 13, 2019 8:07:53 PM
Hi Lisa, you cannot change the terms of affordability that were provided under a loan governed by
an old LHAP. The County commission can to pass a resolution to release the lien on the property
since the property was destroyed. Other than that the lien would sit on the property until it is sold
and you can get some of your funds back. They owner may also be willing to deed the property to
the County if the value is less than the $15,000.
From: CarrLisa
Sent: Wednesday, March 13, 2019 4:45 PM
To: Aida Andujar
Cc: SonntagKristi
Subject: LHAP Requirement
Aid,
We have a situation where a homeowner let her insurance laps and her home was destroyed in a
fire. She received a $15K Rehab in 2002 under the 2002 LHAP with a 20 year affordability term. Is
Collier County bound by the 2002 LHAP affordability period or can the BCC wave / release the loan.
Or can the BCC choose to use our current LHAP which allows for a 5 year increments forgivable loan.
In this case she would have to pay $5,000 if she sales the land.
Respectfully,
Lisa N. Carr
Senior Grant Coordinator
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Community and Human Services
Making Our Community Stronger; One life, One Home, One Project a Time
NOTE: Email Address Has Changed
3339 Tamiami Trail E, Suite 211, Naples Florida 34112
Phone: 239.252.2339 Fax: 239.252.6517
lisa.carr@colliercountyfl.gov
Under Florida Law, e-mail addresses are public records. If you do not want your e-mail address released in response
to a public records request, do not send electronic mail to this entity. Instead, contact this office by telephone or in
writing.
16.D.10.c
Packet Pg. 1468 Attachment: RE FHFC Email- Poole (9045 : Poole SHIP Mortgage)