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Agenda 11/18/2008 Item #16D 3 Agenda Item No. 16D3 November 18, 2008 Page 1 of 39 EXECUTIVE SUMMARY Recommendation for the Board of Connty Commissioners to approve the Neighborhood Stabilization Program (NSP) amendment to the 2008-09 HUD One Year Action Plan and authorize the Chairman to sign the necessary certifications and documents to submit the document to Housing and Urban Development (HUD) by December 1, 2008. OBJECTIVE: For the Board of County Commissioners to approve the proposed amendment to the 2008-09 HUD One Year Action Plan to incorporate strategies for the Neighborhood Stabilization Program (NSP) and authorize the Chairman to sign the associated certifications and documents for submittal. CONSIDERATIONS: On April 22, 2008, the Board adopted Resolution No. 2008-121 approving the submittal of the annual Action Plan to HUD for $3,089,381.00 in entitlement funds for FY 2008-2009. On July 30, 2008, President Bush signed into law the Housing Economic Recovery Act (HERA) to provide emergency assistance for the redevelopment of abandoned and foreclosed homes. The Secretary ofHUD established a formula for the distribution of the funds. This formula included the rate of foreclosures within a jurisdiction as well as the percent of subprime mortgages. On September 29, 2008, Collier County was notified by HUD about the amount ofNSP funding that will be allocated to the County. Collier County will receive $7,306,755 in NSP funding, Of this amount, twenty-five percent (25%) of the funding or $1,827,000.00 must be used to serve households who earn 50% or less of the Area Median Income. The grant allows for 10% to be used for program administration as well. In order to receive this grant, Collier County must make a significant amendment to its 2008-09 Action Plan utilizing the template provided by HUD. Collier County's Housing and Human Services has developed the attached Action Plan for the Board's approval. The Plan was advertised for public comment on Monday, October 20, 2008 and posted on the County's website on October nnd for the 15 day public comment period as required by law, Any comments received have been included in the Action Plan amendment. The Plan contains strategies to use NSP funds for the acquisition, rehabilitation and resale or rent of foreclosed and abandoned properties in Collier County. It includes strategies to deliver homebuyer's education and counseling to applicants, purchase assistance to applicants who purchased bank-owned properties, demolition and new construction and the opportunity to land bank properties for future development. The proposed budget is listed below: COLLIER corXTY :'\5P .ULOCATIO:" - ~,306.-:-5:;.OO S Amount by 500,(, .--\:\II aud B('low 51% -120% A'IT Total by Adi,it~ Amount AmOUnt Actiyi~ Plauruug and Adlllllll~trarlon S nO_67~_OO S $ S 7:;0.6'500 :\cq\ll<;.tiJ:lIl ~lld RehilOlhtMioll ofF(lI'~do~~d pj'op~I1l~~ for R\"<;alt' S ~:~~::_~~:.%~ ci-- ~_;:J6> "'0 S 3,149.08000 S 3.879.'55 :'0 Acol\l:.tioll and RehaollnM10ll ofForedo<;ed ProlJeHH', for R!!lltal S S SJU':-..<:,O S 715.000.00 $ L'i.:'6.3.:'4.:'0 DU("Cl Home-bun-f A~~i:"r<Ulce- to AcqUIre- for!'clo~~d PfOp.e-11ie-~ $ -lOO,nOO.GO S - $ 400.000.00 \ 400.000.00 H01llehu)''='f Education S -'O.(JO(IVO S _'5.00000 S 35.00000 S 7{'.OOOOO Deme,litioll of Acqn:re-d Fe<redC'"e-d Pf0perne~ -- S ,2fIC.()OO.OO S H'O,OOC' 00 S 100.000,00 S 200.000 (10 L:md Banking ofProp"-,,nies --~ S 500.00000 S 1=-,0,00(100 S 350.000,00 $ 50('.000.00 TOTALS $ ....J.06....~5.(J0 $ LS:!....llUO.OO S 4,"'49,080.00 S :.306....55.00 PERC:r:'\TAG[ OF TOTAL ALLOC-ATIO:'\ 1~.flOo .. 65.00% Agenda Item No. 16D3 November 18, 2008 Page 2 of 39 The proposed NSP Amendment must be submitted to HUD by December I, 2008, FISCAL IMPACT: By approving this proposed amendment, Collier County will be awarded over $7.3 million dollars in grant funds. GROWTH MANAGEMENT IMPACT: The NSP amendment to create affordable housing will further the goals, objectives and policies of the Growth Management Plan's Housing Element. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney's Office. It is legally sufficient for Board action. - CMG RECOMMENDA nON: That the Board of County Commissioners approve the Neighborhood Stabilization Program (NSP) amendment to the 2008-09 HUD One Year Action Plan and authorize the Chairman to sign the necessary certifications and documents to submit to Housing and Urban Development (HUD) by December I, 2008. Prepared by: Marcy Krumbine, Director, Housing and Human Services .",\.I~~: ,'}~ ~... ,.' " · IIIHlfI' ". ~, I! ."1',, i ~,,'lIlill' "' ". I ,-" 'l"M"t.~O V.S, lJEl'ARTMENT OF HOUSING AND URI\AN m;Vm,<Il'MENT WASHINGTON. DC 20410-7000 Agenda Item No. 16D3 November 18, 2008 Page 3 of 39 I\SSISTANT SI'.CHETARY FOR COM:vtl'!\'ITY PLi\1'\;";ING !\I'\I) DEVEIJ)PME:-.:T SEP 2 6 2008 RECEIVED OCT 0 3 2008 The Honorable Tom Henning Chair, Board of County Commissioner County of Collier 3301 E. Tamiami Trail Naples, FL 34112 Board of County Commissioners Dear Chairman Henning: On behalf of Secretary Sleven Preston, I am pleased to inform you that the County of Collier has been allocated $7,306,755 in funding through HUD's Neighborhood Stabiliz,ltion Program (NSP). The NSP is authorized by the recently enacted Housing and Economic Recovery Act of 2008 (HERA) and is funded at a level of $3,92 billion. The purpose of the NSP is to assist Slates and local govel11ments in addressing the effects of abandoned and foreclosed properties in the nation's communities. The uses of NSP funds are: . Establishment of financing mechanisms for purchase and redevelopment of foreclosed upon homes and residential properties; . Purchase and rehabilitation of abandoned and foreclosed homes and residential properties; . Establishment of land banks for homes that have been foreclosed upon; . Demolition of blighted structures; and . Redevelopment of demolished or vacant propel1ies, Pursuant to the statutory directive of HERA. the NSP is closely related to the long standing Community Development Block Grant (CBDG) program. As a result, HUD wil] implement the NSP by relying upon existing CDBG requirements and making appropriate adjustments to accommodate the directives of HERA, The guidance implementing the NSP is contained in a Notice to be available September 29.2008 on HUD's website at www.hud.20v/nsp and also publisbed in the Federal Register during tbe first few days of October. This website will also provide a wide range of other information which will be useful to NSP grantees. The Notice dcscribes tbe application process tbat your jurisdiction will have to follow to obtain its NSP allocation, Briefly, the application will be an amendment to your jUlisdiction's existing consolidated plan that governs the use of CDBG and other HUD formula program funds. This approach bas the advantage of building upon planning actions already undertaken by your jurisdiction and, to fUl1her speed tbe process, HUD is abbreviating citizen participation requirements. These steps arc intended to assist grantees in developing their program and submitting their application to HUD not later than December 1,2008. Failure to applv bv December 1. 2008 wi II result in the reallocation of vour jurisdiction's funds to other grantees. www.hud.gov espanol.hud.gov A 1 J 1UJ7t" rJ. ~Q.0.7U,j Yl f"\~r,. I .,;' Ii 1 . ~~ Agenda Item No. 16D3 November 18, f008 Page 4 -elf 39 The Depallment is committed to assisting grantees in the implementation of the NSP at the stale and localleve!. To this end, Secretary Preston is hosting a housing summit in Washington, DC on October 7 and 8 and I encourage you to attend to benefit from the most current infOlmation regarding the NSP and other aspects of HERA. Information on the housing summit can be found at www.hud.~ov. Further, HUD will conduct a selies of one day informational sessions on the NSP to be held at several locations across the country beginning October 10. InfOlmation on these sessions will be available on HUD's website as soon as details are finalized. As your staff undertake efforts to develop an NSP program, I urge them to contact the Community Planning and Development staff in your assigned HUD field office if they have any questions. HUD's field staff is, as always, the best source of guidance as to program requirements and HUD's expectations. I look forward to working with you to ensure the rapid and successful implementation of the NSP to benelit the nation's communities. Sincerely, ~~ Susan D. Peppler Assistant Secretary Agenda Item No. 16D3 November 18, 2008 Page 5 of 39 APPLICATION fOR OMB AOJ;oroved No. },l)1ti--0006 Ver&ion7f03 FEDERAL ASSISTANCE i 2, OATE SUBMITTED jAPPlicant Identifier I : 1. TYPE OF SUBMISSION: -----3:'bA:Te:-REtfEIVECfSY-STATi:: ,,~---"~"'~"'~' Sla1e Appllcahon ld(mtifier '-, iliJAPPclicalilTon . r~rec-apPltlcatlOlln ....'.oAfEReCEIVeOB'rFEDERALAGENCy._. Federai'identifler ---------~ , one uctlon _ on8 rue on ' C. NOi".t;g.fl.i~t!9!L___ n NQ.I1~~Qn~trv~~J9!!.L_~.______~____.____ M__"'_~_"'_' '6, APPLICANT INFOR.M!!!I!lN _._._._________ ! Legal Name: i ~rgllnlzatlonBt Unit I . I Department L Collier County HousIng and Human Services Orgllln~li!Itional DUNS: Division: 076997790 Public Services Address: Namll and telephone number of person to be contacted on matters Street: Involvin tAls 8pplication Ive area codel 3301 Tamiami Trail E Prefix: I First Name: B~\I~.i!'!9_,':I.._..___.___"___.____..._. ___._,~._____ __,! Merc~__._ ____._____..__.._______ City, i Middle Name .~.':!p~____. .m ______ ,,____.____.____ 1------------_____________..____.._..__._......__..___. County: ! Last Ni'me Colhef ! Krumblne I.~~~' jZ~ m'. i Suffix ~ Country; 1 Em~il: 1 United States I marcvkrumbine@colliergov net i 6. EMPLOYER IDENTIFICATION NUMBER (EIN), j Phone Number (ijiv\i illllil coati) FiiNumber (gwe C1letl cads) I ~~-[l[OJ[Q][]~[Q][J 1239252-6442 239252-263. i8. TYPE OF APPLICATION: 7, TIPE OF APPLICANT: (See back: of form for AppliGation Types) : V New Jr: ContlnuiCl1il)I1 r Revision ~t Revision, enter appropnate lener(sj in bC'x(ee) !~See bac~ of form ror description of letters) I ! Other (specify) -' I 1 o o County :)ther (specify) 9. NAME OF FEDERAl,.. AGENCY; Housing and Urban Development '10.'" CATALOG OF FEDERAL COMESTICASS1STANCE NUMBER:------- 11. DESCRIPTIVE TITLE OF APPLlCA.NT'S PROJECT: iiJ('Hl[iJ[iJ Collior County Neigl1borhood Stabilization Program TITLE (Name of Program): i Neighborhood 5tabUiztlUOll Program ,12. AREAS AFFECTED Ei'Y-P-ROJEc;r (C"/9S, Countl9S, States, erc)' I i Collier County :"3, PROPOSED PROJECT : Start Date: : January 15, 2{l09 ii5:-ESfiMATED FUNDiNG: , :aFederBr-~- , 7,306,755 I "4, CONGRESSIONAL DISTRICTS OF: s. Applicant rs.-pro]i;ct ,14/25 r4'25 :1S-:iSAPPLICATION SUBJECT TO REVIEW BY STATE E-XECUTlVE /ORDER 12372 PROqE~ll.L.... a Yes, ~e~~A~i~P:~I~~~I~~;~P~~~~~~~~~~Dl~372 PROCESS FOR REVIEW ON I Ending Date: July 30, 2013 i$ ,,, ! b Applicant I c. Stale is o IS I 0 f 0 . b No, IT] PROGRAM IS NOT COVERED BY E. 0 12372 ~ 0 ," I 0 OR PROGRAM HAS NOT BEEN SELECTED BY STATE L ' FOR. REVIEW F --~;:r'-! 17. IS THE APPLICANT DELINQUENT ON ANY FEDERAl. DEen- I g. TOTAL ~ 7.306,755! 0 Yes If "Yes. alta!;:h an explsnallon. ~ No i~f8.~fOTHE BeST OF MY KNOWLEDGE ANtj"EfEIiEf~ALL DATA IN THIS APPL.lCATlON/PREAPPLlCAff6N;a]~I:.tRDE ANlfcORRECT. THe- :aOCUMENT HAS BEEN DULY AUTHORIZED BV THE GOVERNING BODY OF THE APPLICANT AND THE APPLICANT WILL COMPLY WITH THE ;ATTACHED ASSURANCES IF THe ASSISTANce IS AWARDED. ,a 0im.~ Reore~p.ntatlve - -.---..-.------. ;r.fr~fix .. J~~~Name [Last Name _.._._.n.. . Henning :tJTlile ChalITTlsn, Board of County Commissioners ~ Signature of Authorized Ropresentative I 'PJeviOij-;--Edltlon vr.~bie---.---_..~ ."'1-I:linri.;E-rl r~iI Lutal Rcomductron ATTEST: DWIGHT E. BROCK, Clerk DATE: 'Ci-Cocar e. otl1er f Pmgram Income -- ~Iddle Name ------.----J1sufflx - T9~phOntt Number (give area rode) 23g 252.8097 - Date Signed ~. ~- ----~-----_._----- St-a-n(1..r.1 Form 1,24 ~Re'" eo-:;::orIJ.l APPrer.ech0lSl1lo>iDlt>nm<&.le!B.u.Sllllliciency (I1JjOO;::t:~ Assistant County Attorney By: Mcom DOC":> ,^O_ ~N Oot 'a:i~o ~~ (j)~ E (;j g?; -'" Q. 0 ~ E ~ '" (j) "0> c: 0 "Z Ol <( -, ,5;; a Vi. ;='.::!, o _ ~ ~ e ~ II> '" (fl jth I~ ;; '" 1J ;:: lD 'Pv 1J is " ~E '" 'S " a: c: 0 (; z 3 " lI.n ,. '" ~ '" . .", ~ rt> Z .- E '" ,. g ~ 1!! ;;: 0 ;::: ... ~- \1 Q. ]~ c '" u. 0 0 '" z ~> !!! 0 g~ a: r:: 10 u,-.l l~, ~ .l:::lii .!:L.j "" "I~I!:J.~;-- 1---. 1-- "':lii lw!~ , c'" ... . 0", lctl::e <,'l;j ~ . 't) Ii: a; I ... '" C" ." 0 ! 00 ;; -gEl w '" " "- , Z'" " u.. 0 ~ . In U. C '" z Z . ." 0 In ii: , ! " z 0 <( 'iii , Cl -Z .g. al I I I f-,O :0 '" -. -..- ... Z ;g~ ..- ", ~j' <C- o 0 :Eli c ;::: I :::> !l':w -:.:l IS"' L" t) 0'" ~ lJ) '^ W ... 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" " r ~ J1 ~ o ;; . .t "'COOl 00'" ",0_ ....NO j.... - '" ~Ol c:Q)<U ",.Do. :eE ",'" .,,> ,,0 "'z Ol .0: .!! !'l "'~ ILl " !,J- ot: ::l 10 :z III: i~= Ii! l:l Im._ Co.. :J:& z~ 08- z 0_ z 2 t; ILl ., E e J I~ i \0.. ! 11: III i'i ~ :3 ~ o I- ~ .,. ~ ~ I~ ':6 Is:. :!:!- .,. .,.1 I I .,. I I I lcri,a) ci ~ o ~ ~ '" '" .. II :w ," ~ '" '" c ] w ... W z :c ~ o o w " I- ~ '" g ~ a ~I~ ~J z o j:: ,lg U I! g; ~ A ~ ~ , i'" i . i~ I::: '''' :g ~ 'a g ~ ;;! I- o l- N ~ ~ . , '" .. ;; . i , '" 12 .. '" .. '" tI> tI> ~ 1Il '0 1Il IJ. ..; ~ ~ ~ 1Il U. C o z <i - € ;:J o IJ. ~ tI> '" I- 1-;; <) " w I~ 1:1 ~ (/);:: 0. Ol:c' w Q'- :c tr: I- W U. lL o 19 W z 0'15 z'z :3 ::>Ill <( ""18 III ~ ell " ::>- o I- " "" :J Q u. ILl 'Q W W Z '" o z ;;;) "" ..J !~ W c w u. u. o (/) W l- ii, ~ ., W Iii Cl o ;;;) ~ E w e ~ 15 e ~ _ lL "Olt,c; ~ w 1(U ~ Ulli'i I~ '" II> '" '" '" i! iI e, I I ~ _~l-J '" '" III ~ ~ " g ~ ..J >5 o I- u:; ~ <6 ~ r..: ~ 0; ~ ai ~ '" '" '" z o iri t: 1Il <( 0> ~ ~ o U g; ~ I- 1'5 W,-o= Cl 1-: g ;i:l "'II " I UI X I- o .. u. z o t: U UJ Ul Oi' ~ <b - '" 1; 'a ~ ~ ..J g I- o N in 1Il E' III .c U 13 i!? I~ iN ... . g> .. ;::- "I ~ ~ ! ~ E & 12 -!l c .'! <II c: o ~ :;J '0 e Co fP. .. ,~ I~ o ;; ;:J < ~ III E " 0:: <'i ;N Agenda Item No. 16D3 November 18 2008 Page 8 of 39 ASSURANCES - NON-GONSTRUCTION PROGRAMS OMS Approval No, 0348.0040 I'PUbnc reporting burden for this collection of information is estimated to average 15 minutes per response, including lime for reviewing Instructions, searching eXlsting data sources, gathering end maintaining the data needed, and completing and reviewing tho collection of !information. Send comments regarding the burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to the Office of Management and Budget. Paperwork Reduction Projsct (0348-0040), Washington, DC 20503. PLEASE DO NOT RETURN YOUR COMPLETED FORM TO THE OFFICE OF MANAGEMENT AND BUDGET. SEND IT TO THE ADDRESS PROVIDED BY THE SPONSORING AGENCY. NOTE: Certain of thesa assurances may not be applicable to your project or program. If you have questions, please contact the awarding agency. Further, certain Federal awarding agencies may require applicants to certify to additional assurances. If sLlch is the case. you will be notified. As the duly authorized representative of the applicant, I certify that the applicant 1. Has the lega! authority to apply for Federal assistance and the institutional, managena! and financial capabl11ty (including funds suffident to pay the non-Federal share of project cost) to ensure proper planning, management and completion of the project described in this application, 2. Will give the awarding agency, the Comptroller General of the United States and, if appropriate, the State, through any authorized representative, access to and the right to e;ll:emine all records, books, papers, or documents related to the award; and w!ll establish a proper accounting system in accordance with generally accepted eccounting standards or agency direciives 3. Will establish safeguards to prohibit employees from using their positions for a purpose that constitutes or presents the appearance of personal or organizational conflict of interest. or persona! gain. 4, Will initiate and complete the work within the applicable time frame after receipt of approval of the awarding agency. 6. Will comply with the Intergovernmental Personnel,^ct of 1970 (42 U.S.C. ~~472B--4763) relating to prescribed standards for merit system!;. for programs funded under ene of the 19 stCl1utos or regulations specified in Appendix A of OPM's Standards for s Merit System of Personnel Administration (5 C,F,R. 900, Subpart F). 6. Will comply wi1h all Federal stst~ltes relating to nondiscrimination. These include out are 110t Jimiled to: (a) Title VI of the CiVIl Rights Act of 1964 (P,l 88,352) which prohibits dIscrimination on the basis of race, color or national origin; (b) Title IX of the Education Amendments of 1972, as amended (20 US,C 991681- 1683, and 1685-1686), which prohrbits discrimination on the basis of sex; (c) Section 504 of the Rehabilitation PrevIous Edltlon Uubltt Act of 1973, as amended (29 U,S.C. F94), Which prohibits discrimination on the basis of handicaps; (d) the Age Discrimination Act of 1975, as amended (42 U,S.C. ~S6101-6107), which prohibits discrimination ort the basis of age; (e/lhe Drug Abuse Office and Treatnlent Act of 1972 (P.L 92-255), as amended, relating to nondisCflmlnatlon on the basis of drug abuse; (f) the Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment and Rehabilrtation Act of 1970 (P.L. 91,616), a5 amended, relating to nondiscrimination on the basis of alcohol abuse or alCOhOlism; (g) ~S523 and 527 of the Public Health Service Act of 1912 (42 U.S.C. ~~290 dd-3 and 290 ee 3), as amended, relaUng to confidentiality of alcohol and drug abuse patient records: (h) Title Vlll of the CiVIl Rights Act of 1968 (42 U.S.C, SS3601 at seq.), as amended, relating to nondiscrimination in the sale, rental or financing of housing; (i) any other nondiscriminatIon provisions in the specific statute(s) under whiCh application for Federal assistance is being made; and, OJ the requirements of any other nondiscrimination statute(s) which may apply to the application. 7 Will comply, or has. already complied, with the requirements of Titles II and III of the Uniform Relocation ASSIstance and Real Property Acquisition PoliCies Act of 1970 (PL, 91-646) which provide for fair and equitable treatment 01 persons displaced or whose property is acquired as a result of Federal or federally-assisted programs. These requirements apply to all interests in real property acqUIred for project purposes regardless of Federal participation in purchases 8. Will compiy, as applicable, with proviSions of the Hatch Act (5 U.S,C. ~~1501,1506 and 7324-7328) which limit the politIcal activities of employees whose principal employment actMtles are funded in whole or in part With Federal funds. Authorized for Local Reproduction Standard Fonn 4248 (Rev. 7-ar) Pro5c:rlbed by OMS Clrcut~r A-102 9. Will comply, as applicable, wIth the provisions of the Davis- Bacon Act (40 U.S.C. ~~276a to 276a-7), the Copeland Act (40 U.S.C. ~276c and 16 U.S.C. ~B74), and the Contract Work Hours and Safely Standards Act (40 U.S.C. ~~327. 333), regarding labor standards for federally-assisted construction subagreemenls. 10. Will comply. if applicable, with flood insurance purchase requirements of Seclion 102(a) of the Flood Disaster Protection Act of 1973 (P.L. 93-234) which requires recipients in a special flood hazard area 10 participate in the program and to purchase fiood Insurance If the total cost of insurable construction and acquisition 16 $10,000 or more. 11. Will comply with environmental standards which may be prescribed pursuant to tha~ following: (6) ins1itution of environmental quality control measures under the National Environmental Policy Act of 1969 (PL 91-190) and Executive Order (EO) 11514; (b) notIfication of violating facilities pursuant to EO 11738; (ei protection of wetlands pursuant to EO 11990: (d) avaluallon of flood hazards in floodplains in accordance with EO ~19B8; (e) assurance of project consistency with the approved State management program developed under the Coastal Zone Management Act of 1972 (16 U.S.C. ~~1451 et sea.). (f) conformity of Federal actions to State (Clean Air) ImplementatIon Plans under Section 176(c) of the Clean Air Act of 1955, as amended (42 U.S.C ~~7401 ot seo.); (g) protection of underground sources of drinking water under the Safe Drinking Watar Act of 1974, aa amended (P.L. 93-523); and, (h) protection of endangered species under the Endangered Species Act of 1973. as amended (P.L. 93. 205). SIGNATURE OF AUTHORIZED CERTIFYING OFFICIAL APPLICANT ORGANIZATION Collier County Approved as to form & legal sufficiency CiJMew- ~ , Colleen Greene, Agenda Item No. 16D3 November 18. 2008 Page 9 of 39 12, Will comply with the Wild and Scenic Rivers Act of 1968 (16 U S.C. ~ij1271 at oeo.) ralated to prolecting components or potential components of the national wild and scenic rivers system. 13, Will assist the awarding agency In assuring compliance with Section 106 of the National Historic Preservation Acl of 1966, ao amandad 116 U.S.C. 9470). EO 11593 (Identification and protectiorl of historic properties), and the Archaeological and Historic Preservation Act of 1974 (16 U.S.C 9~469a-1 91 seo.). 14. Will comply wltn P.L. 93.346 regarding the protection of human subjects involved in research, development. and related actIvities supported by this award of assistance. 15. Will comply with th& Laboratory Animal Welfare Act of~ 1966 (p.L. 89-544, as amended, 7 U.S.C. ~92131 et seq ) pertaIning 10 lhe care, handling, and treatment of warm blooded animals held for research, teaching, or other activities supported by this award of assistance, 16. Will comply with the Lead-Based Paint PoisonIng Prevention Act (42 U.S.C. 994801 et seo.) which prohIbits the use of lead-based paint in construction or rehabilitation of residence structures. 17. Will cause to be performed the requirl3d financial and compliance audits in accordance with the Single Audit Act Amendments of 1996 and OMB Circular No. A-133. "Audits of Slates, Local Governments. and Non-Profit Organizations. n 18. Will comply with all applicable requirements of all other Federal ~aws, executive orders, regulations, and policies gDverning this program. 'TITLE ~ Chairman, ~~:~~"~~~C~~~ty IDATE SUBMiTTED --- Standard form 4248 (Rev. 7-91) Back ATTEST: DWIGHT E_ BROCK, Cierk C~. .. Agenda Item No. 16D3 November 18, 2008 Page 10 of39 CERTIFICA TIONS (I) Affirmatively furthering fair housing. The jurisdiction will affirmatively fmther fair housing, which means that it will conduct an analysis to identifY impediments to fair housing choice within the jUl'isdiction, 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. (2) Anti-lobbying, The jurisdiction will comply with rcstrictions on lobbying required by 24 CFR part 87, together with disclosure forms, if required by that part. (3) Authority of Jurisdiction. 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. (4) Consistency with Plan. The housing activities to be undertaken with NSP funds are consistent with its consolidated plan, which means that NSP funds will be used to meet the congressionally identified needs of abandoned and foreclosed homes in the targeted area set forth in the grantee's substantial amendment. (5) Acquisition and relocation. The jurisdiction 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. (6) Section 3. The jurisdiction will comply with section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701 u), and implementing regulations at 24 CFR part 135. (7) Citizen Participation, The jm'isdiction is in full compliance and following a detailed citizen patticipation plan that satisfies the requirements of Sections 24 CFR 91.105 or 91.115, as modified by NSP requirements, (8) Following Plan, The jurisdiction is following a CUl1'ent consolidated plan (or Comprehensive Housing Affordability Strategy) that has been approved by HUD. (9) Use of funds in 18 months, The jurisdiction will comply with Title 11I of Division B of the Housing and Economic RecovelY Act of2008 by using, as defined in the NSP Notice, all of its grant funds within 18 months of receipt of the grant. (10) Use NSP funds::; 120 of AMI. The jurisdiction will comply with the requirement 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. (11) Assessments. 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 oflow- and moderate-income, including any fee charged or assessment made as a condition of obtaining access to such public improvements. However, ifNSP funds at'e used to pay the propOltion 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 assessment or charge may be made against the pl'OpClty 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. 9 Agenda Item No. 16D3 November 18, 2008 Page 11 of 39 (12) Excessive Force. The jurisdiction certifies that it has adopted and is enforcing: (I) a policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non-violent civil rights demonstrations; and (2) a policy of enforcing applicable State and local laws against physically ban'ing entrance to 01' exit from, a facility 01' location that is the subject of such non-violent civil rights demonstrations within its jurisdiction, (13) Compliance with anti-discrimination laws. 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 Fail' Housing Act (42 U.S.c. 3601- 3619), and implementing regulations. (14) Compliance with lead-based paint procedures. The activities concerning lead-based paint will comply with the requirements of part 35, subpm1s A, B, J, K, and R of this title. (IS) Compliance with laws, The jurisdiction will comply with applicable laws. - Signature/Authorized Official Date Title Approved as to form & legal sufficiency ~~ Colleen Greene, Assistant County Attorney ATTEST: DWIGHT e. BROCK, Clerk By: 10 Page I of I Agenda Item No. 16D3 November 18, 2008 Page 12 of 39 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS Item Number: Item Summary: 1603 Meeti n 9 Date: Recommendation for the Board of County Commissioners to approve the Neighborhood Stabilization Program (NSP) amendment to the 2008-09 HUD One Year Action Plan and authorize the Chairman to sign the necessary certifications and documents to submit the document to Housing and Urban Development (HUD) by December 1,2008. 11/18/2008 9:0000 AM Prepared By Marcy Krumbine Director Date Public Services Housing & Human Services 10/22/20085:09:07 PM Approved By Marcy Krumbine Director Date Public Services Housing & Human Services 10/22/20085:30 PM Approved By Marlene J. Foard Grants Coordinator Date Administrative Services Administrative Services Admin. 10/23/20088:42 AM Approved By Colleen Greene Assistant County Attorner Date County Attorney County Attorney Office 10/24/200811:31 AM Approved By Marla Ramsey Public Services Administrator Date Public Services Public Services Admin. 10/28/2008 2:04 PM Approved By OMB Coordinator Applications Analyst Date Administrative Services Information Technology 11/3/20088:16 AM Approved By Sherry Pryor Management & Budget Analyst Date County Manager's Office Office of Management & Budget 11/7/20082:45 PM Approved By James V. Mudd County Manager Date Board of County Commissioners County Manager's Office 11/10/2008 4:00 PM file://C:\AgendaTest\Export\1 16-November%20 18,%202008\16.%20CONSENT%20AGE... 11/12/2008 THE NSP SUBSTANTIAL AMENDMENT Agenda Item No. 16D3 November 18, 2008 Page 13 of 39 Jurisdiction Web Address: colliergov.net NSP Contact Person: Marcy Krumbine Address: 3301 E Tamiami Trail, Health Building, Suite 211, Naples, FL 341 12 Telephone: (239) 252-4663 Fax: (239) 252-2638 Email: marcykrumbinecollierov.net Jurisdiction(s): Collier County A. AREAS OF GREATEST NEED 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) Foreclosure and Abandonment Risk Scoring System to identify the areas at risk of foreclosure or abandonment. The information was analyzed and applied to the Collier County 2000 Census Tracts to assess the areas of greatest need. Additionally, Collier County employed local foreclosure data to further define the target areas for Neighborhood Stabilization Program (NSP) assistance. When considering the two aforementioned data, the information was consistent in the urban areas. However, in the rural areas there was a disparity between the HUD data and the local foreclosure information. The local housing and economic challenges currently plaguing the rural areas were not accurately captured in the HUD Foreclosure and Abandonment Risk Scoring System. Therefore, Collier County relied more heavily on local data when assessing the needs of the rural areas. Areas at Risk The following table summarizes the areas at risk in Collier County using the HUD Foreclosure and Abandonment Risk Scoring System. Areas receiving an index score of ten (10) are at greatest risk and areas receiving an index score of one (I) are least likely to suffer foreclosure or abandonment during the next eighteen (18) months. Estimated Foreclosure Index Urban Rural 10 1 5 5 9 35 4 8 36 10 7 20 8 6 14 5 5 5 8 4 6 14 3 18 8 2 0 0 1 0 0 Agenda Item No. 16D3 November 18, 2008 Page 14 of 39 The above information was applied to the Collier County 2000 Census Tracts map to illustrate the geographic areas at greatest risk. The HUD Foreclosure and Abandonment Risk Scoring System Map shows those areas receiving a risk index score of seven (7) or higher. The County analyzed the data and determined that the following areas are at greatest risk for an increase in foreclosure or abandonment over the next eighteen (18) months: East Naples, Golden Gate City and Golden Gate Estates. Collier County then analyzed the current number of foreclosures by zip code. This exercise served two purposes: first, the Collier County Foreclosure Map and Table reinforces the conclusions of the HUD Foreclosure and Abandonment Risk Scoring System and, second, the foreclosure data assists the County in accurately assessing the needs and risks contained in the rural areas not captured in the HUD data. Finally, Collier County considered the percentage of homes financed by a subprime mortgage related loan in East Naples, Golden Gate City and Golden Gate Estates. The percentages were established by HUD using Home Mortgage Disclosure Act (HMDA) data. The following table summarizes the HMDA High Cost Loan Rate in the three areas of greatest need in Collier County. HMDA High East Golden Gate Golden Gate Cost Loan Rate Naples City Estates Percentage for Subprime 36.8% 52.4% 42.1% Mortgage Related Loans Please refer to the following two pages for additional detail. 2 Agenda Item No. 16D3 November 18, 2008 HUD Foreclosure and Abandonment Risk Scoring System Map Page 15 of 39 /~L~ Ir~~,,<,;; \ Vf-;Ll~~l:t~\ll COLI.IER ~Pt1,~Y, FLORIDA I III ",-..","'. , IIJ I 2000 CENSUS TRACTS \\O~,'.' 1:/' \.-rt-c~N''''~'''''' .' ',<'"-"-;p, - " "'<,:::~_. :j ~.-.._---,. -T- ! .1 I'i -..----- 1I1!.0l - 112.02 IO"~ .~ ro..07 10...11 - \ \ nl.Oll o .;<, G ",1-/'1 ,) '.'--...",'v..,_r-l "-~'~",",-I - t>lh~~~-'~ I'--~----~' , ""\' ',,,, . /'....;~.-...., b~ i~_""" '., ff";". i~;:rb'" . J J" _ ~F? J~~1-~y[r SE,--"r~ - ~ c:ii"'v1t ',I ~ \:,,~\~.,~)rF'~r~.;\_ cD !~__ \--'?''''~ if ~"'~~Df' ""'J lW:h'~',,-'"'QI " if.' ~ I-- +-'l~,t~~!.J;~";':.fl-.-(tM'---~ v_'~~~ l~;;},,),:oJ'~ ~~t.r.$(,(".e$5'~';iJ.. \-,~- D'.. 1:--""1' ~"\"-'-'f,,",,,'T,,-,i;~t.. "'- "".I ,,' ,,-' '''''''''' _ ,,_'\ '0 (->: ~~.r,,,'i st '-'1>1 \ "J.) ';"'JI... ~) C;--'~ 1', \ i '".-{''0, .J'I;'?~~ ,/.} I,.' \.r-. I~ :>~~<it;~' tt,':(:'t-~.,I '~"--,:- l;f-2-"i-t -,~~_. :";.'._' HUD ''''''''''-O'::;/~~:N~ENr -" -. -, --'--, ...''''''''...-- - --,..-~""- __N___ -.....-"'---~,- .."~- ",.".- 3 Collier County Foreclosure Map and Table Agenda Item No. 16D3 November 18, 2008 Page 16 of 39 P.O._ !!!!!!! .... .Ph1tllC'1.:MiI ...." -P.D.IIOlC~-"- A..&.. , . ..... .P.o.ICIC'HMII ........ ...... -PA_1__ ZIP CODES CllIIor CoorIIr. FIorklll I '-0 II" 1----1 \ . \ \ . \ M141 Fft:JIWE1I8fllPAAlg"'P"ml~I:'L'1.f'FI:1I!T1IECIIlW ="Jl~~~&~lNUITlILlER'.tlDCII~ ZIP NUMBER OF ZIP NUMBER OF CODE FORECLOSURES CODE FORECLOSURES 34142 70 34120 1228 34119 423 34110 190 34134 217 34108 202 34109 307 34103 129 34105 248 34116 915 34102 1 01 34104 413 34112 442 34117 550 34113 338 34114 174 34145 337 34139 6 4 Identified Program Target Areas Agenda Item No. 16D3 November 18, 2008 Page 17 of 39 The Collier County NSP Allocation will target the following three (3) areas for economic and housing redevelopment: East Naples, Golden Gate City and Golden Gate Estates. The County will continue to monitor local foreclosure data and intends that the NSP Program be flexible to allow for timely reaction to any significant changes in the local housing market. 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 230 I (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, the areas of East Naples, Golden Gate City and Golden Gate Estates meet all three (3) stipulated need categories. All three areas have a HUD Foreclosure and Abandonment Risk score of seven (7) or higher, all three have significant foreclosure activity and all have a HMDA High Cost Loan Rate above 36 percent. 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 arca 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 defmed 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 fue or other causes. (2) Defmition 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, 5 Narrative Response: Agenda Item No. 16D3 November 18, 2008 Page 18 of 39 The maximum Affordable Rents shall not exceed the Fair Market Rents (FMR) as published annually by the U.S. Department of Housing and Urban Development for the Naples ~ Marco Island MSA. The current rates are listed below: Final FY 2009 FMRs By Unit Bedrooms Efficiency One-Bedroom Two-Bedroom Three-Bedroom F our- Bedroom Final FY 2009 FMR $ 868 $ 995 $ 1,120 $ 1,392 $ 1,449 Source: U.S. Department of Housing and Urban Development (2009) (3) Describe how the grantee will ensure continued affordability for NSP assisted bousing. Narrative Response: Collier County will ensure long term affordability through the use of a recorded lien against the property. If an owner who has been assisted though this program transfers title to the property before the affordability period expires, the assistance provided by the County will be subj ect to recapture. The County will monitor assisted units on an annual basis during the affordability period. All properties receiving assistance from the Neighborhood Stabilization Program (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 continued affordability. 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 County will use the minimum affordability period of the federal HOME Investment Partnership Program, 24 CFR 92.252(a), (c), (e) and (t), 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 (4) Describe housing rehabilitation standards that will apply to NSP assisted activities. Narrative Response: All dwelling units that require rehabilitation must meet local and state building codes. Collier County will require home rehabilitation to meet, or exceed, current Florida Building Code (FBC). The current code used by Collier County is the 2004 FBC; effective March I, 2009 the code will be updated to 2007 FBe. 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. Collier County encompasses a large coastal area that subjects the residents to the risk of hurricanes and severe flooding. The County will encourage hurricane hardening and damage mitigation during rehabilitation. 6 Agenda Item No. 16D3 November 18, 2008 Collier County's Department of Housing and Human Services has a Local Housing Assistance pfutll~rmAfFW adopted as Ordinance No. 93-19 and Ordinance No. 94-39. The referenced ordinances detail the specifications _ required to bring substandard housing into compliance with local and state building codes. (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. (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 otTer 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 7 Agenda Item No. 16D3 November 18, 2008 bank is a governmental entity, it may also maintain abandoned or foreclosed property that it doefMf'@!W]lPf 39 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. Low INCOME TARGETING 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 ResDonse: Collier County acknowledges that households earning less than 50% AMI may require affordable rental apartment dwelling units. Therefore the County will explore options for purchase and rehabilitation of multi- family rental apartment dwelling units. Special emphasis shall be placed on providing rental housing to the special needs population, such as elderly or developmentally disabled, earning less than 50% AMI. Some local non-profit housing providers in Collier County have a proven track record of success in providing homeownership units to households earning less than 50% AMI. As such, the County may encourage home ownership should the subject property be shown affordable to the prospective homebuyer. Should a unit acquired and intended for homeownership fail to sell within a timerrame deemed reasonable by Collier County, said unit may be rented to a household earning less than 50% AMI. Should this occur, the Collier County Department of Housing and Hwnan Service's may partner with for-profit or nonprofit organizations to provide services such as, but not limited to, property management services, tenant selection and collection of monthly rental payments. Currently, the Collier County Housing Authority operates a Tenant- Based Rental Assistance (TBRA) Program. The agency has a proven track record of providing a compliant Section 8 Department of Housing and Urban Development rental subsidy program. E.ACQUlSITIONS & 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 ofNSP-assisted activities. . The number ofNSP 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 houscholds whose income does not exceed 50 percent of area median income. Narrative ResDonse: 8 Agenda Item No. 16D3 November 18, 2008 Should the initial inspection and/or rehabilitation work determine that demolition of the dwelling'ooit is mOlQ cost effective, Collier County 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 program. 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 Provide a summary of public comments received to the proposed NSP Substantial Amendment. Narrative Response: On October 22, 2008 Collier County posted the proposed NSP Substantial Amendment on its web site. Additionally, notice of the County's allocation and availability of the proposed NSP Substantial Amendment was advertised in the local Naples Daily News. Below are listed the comments received during the mandatory fifteen (15) day public comment period, Public Comment #1 From: John Barlow Sent: Wednesday, October 22, 2008 8:28 PM To: KrumbineMarcy Snbject: RE: Collier County NSP Substantial Amendment Marcy, I printed out the NSP Draft and scanned it. I will read it in its entirety this weekend. The data in this document screams for the three areas you identified, and supports our rehabilitated home in zip code 34116, which is one of the highest zip codes for foreclosed properties. I like the plan and look forward to doing our part to make this dilapidated homes better, much better. John F. Barlow Response #1 From: KrumbineMarcy Sent: Friday, November 07, 2008 12:38 PM To: 'John Barlow' Subject: RE: Collier County NSP Substantial Amendment Thank you for your comments. We will include your comments within the public comment section of our NSP Amendment. Marcy Krumbine,MP A Public Comment #2 From: Stephen Hruby - AU Sent: Monday, November 03, 2008 12: 17 PM 9 To: KrumbineMarcy Cc: RamseyFrank Subject: NAP Grant Submission Agenda Item No. 16D3 November 18, 2008 Page 22 of 39 Marcy, In preparation for the meeting today, I did a quick overview of the NSP Grant Submission that you posted. I had several comments on various activity narratives. On Activity #1 and #2: . It is not clear, but I assume the county is purchasing, holding title and then reselling the for sale homes and not utilizing a third party non-profit or developer to do so? . If the above is true, what is the intention for retaining and managing the rental property or is it your intention to sell the units with the restrictions on them? Wauld you consider turning them over to the public housing authority to manage? . It is not clear to me how you intend to renovate the properties. It says the County will scope the work, but you are not clear as to who will do the work. I assume you will retain contractors. Vlhat is your procurement process? . You mention in several places that the County may partner with non-profits. What do anticipate they will do and how would you select an procure their services? On Activity #3: . I did not see anything in the narrative that explained what type of assistance and the limits of assistance would be provided to the direct buyer. Can you elaborate? On Activity #4: . Can you expand the contracts of the two service providers you have under contract now or must you re-procure them? Stephen 1. Hruby AIA Response #2 From: KrumbineMarcy Seut: Friday, November 07,2008 12:47 PM To: 'Stephen Hruby - AU Cc: RamseyFrank Subject: RE: NAP Grant Submission Thank you for your comments and questions regarding the NSP Grant submission. They will be included in the public comment section of the amendment. To answer your questions, the department has kept the various sections of each activity purposely flexible in order to comply with the strict timeline of the grant. It is our intention to work as quickly and efficiently as possible either in house or with our community partners to acquire and rehabilitate properties within the allotted time frame. At all times, the processes will adhere to proper procurement procedures. Direct assistance to a homebuyer will not exceed $50,000. Thank you again for your interest and comments. Marcy Krumbine,MPA Public Comment #3 From: Barbara Cacchione Sent: Tuesday, November 04,200811:22 AM To: KrumbineMarcy Subject: Public comment 10 Agenda Item No. 16D3 November 18, 2008 The NSP substantial amendment proposed by Collier County targets several specific areas in Collier County which ~2l1gbfr3Q of foreclosure, as well as subprime mortgages. I would ask that you consider adding another area which includes lmmokalee. lmmokalee was targeted by HUD as an area of high foreclosure and abandonment risk area according to their data. In addition, there is a high degree of abandoned and dilapidated structures according to the County's own estimates which add to the need for the Neighborhood Stabilization Program for the area. The lmmokalee Community is much smaller in scale so the funding allocated could be less than the other targeted areas. In addition, there is a strong active collaborative effort among the housing nonprofits to effectively leverage the funding that is allocated by turning the funds in to program income and purchasing additional properties. The lmmokalee Housing Collaborative is particularly interested in the Eden Park Neighborhood where there are a number of vacant, dilapidated homes currently for sale. On behalf of the Imrnokalee housing nonprofits and the lmmokalee Community we would appreciate consideration of an allocation of funding that would include the lmmokalee Community. This can be done by providing a percentage of funds that are available for areas outside of the targeted areas identified by the County or by a smaller allocation to the Immokalee Community based on the poor housing conditions that currently exist and the numbers of foreclosures for a smaller community to absorb. I thank you for your consideration and will be happy to discuss this in further detail. Please contact me at your convenience at 239-287-1428 or email at bcacc hione([iJcomcast.net. Response #3 From: KrumbineMarcy Sent: Tuesday, November 04,2008 12:56 PM To: IBarbara Cacchione'; RamseyFrank Subject: RE: Public comment Thank you for your public comment. The NSP program is very specific in using grant funds for the area of the most need based upon foreclosure rates. The County can ask HUD for an exception and we can explain the pressing needs of the Immokalee community. This will be based on board direction and these comments will be included in the Action Plan. Marcy Krumbine,MP A Public Comment #4 From: Debi Mahr Sent: Wednesday, November 05,2008 10:48 AM To: KrumbineMarcy Subject: Public Comment Marcy, Please accept the attached public comment from the Collier County Hunger and Homeless Coalition regarding the County's NSP draft of proposed use offunding. We appreciate the opportunity. Backg:round information and HUD recommendations: The Neighborhood Stabilization Program (NSP) appropriates $3.92 billion to communities and states across the countJy. Collier County is eligible for $7,306,755.00 to be used for: . Establishing financing mechanisms for purchase and redevelopment of foreclosed homes . Purchasing or rehabilitating homes and residential properties that have been abandoned or foreclosed, in order to sell, rent, or redevelop such homes and properties . Establishing land hanks for homes that have been foreclosed upon . Demolishing blighted structures . Redeveloping demolished or vacant properties HUD ideas for how you might use the money to serve the homeless and at-risk population: . Purchase several single-family homes in a neighborhood and create a permanent supportive housing project for homeless persons. . Purchase a single-family home and rehabilitate it to contain two or three apartments to be used as permanent housing for homeless persons. . Purchase a residential property and construct an apartment complex which will be used as permanent housing for homeless persons.l Thank you, II Debra MahrlExecutive Director Agenda Item No. 16D3 November 18, 2008 Page 24 of 39 Response #4 From: KrumbineMarcy Sent: Friday, November 07, 2008 8: 19 AM To: 'Debi Mahr' Snbject: RE: Public Comment The Department of Housing and Human Services is in receipt of your public comment for the draft of the NSP Action Plan. In your comment, you propose the increase of funding for 50% and below of the AMI to 40%. Your comments will be included in the Action Plan and presented to the Board of County Commissioners. Please understand that the grant only provides for housing units and does not provide any operating funds for these units. In speaking with various members of the HUD staff in Washington, DC and local housing partners who serve those needing transitional or permanent housing for the very low income of Collier County, there is a concern about staffing for expanded housing services. \Vhile Housing and Human Services is the lead agency for the Continuum of Care and understands the need, it is critical for us to assure that any units dedicated to 50% of the AM] or below can and will be properly managed by our area agencies. As we move forward, we will indeed look to formalize partnerships with agencies that have the capacity to take on additional property management for the very low income, elderly, special needs, homeless and those at risk. Marcy Krumbine,MP A Public Comment #5 November 6,2008 Marcy Krumbine Director Collier County Housing & Human Services 3050 North Horseshoe Drive, Suite 110 Naples, FL 34104 Re: Action Plan for Neighborhood Stabilization Program Dear Ms. Krumbine: Thank you for including the Collier County Housing Authority in the Action Plan, as a potential partner with Collier County, in meeting the needs of the county through the Neighborhood Stabilization Program, particularly the 25% targeted to individuals and families at 50% AMI or below. Our considerable experience includes dealing with very low income households through the federal programs we administer. That experience and skills involves all aspects of property management and familiarity with some of the federal compliance requirements. Farm Worker Village, a multi-family development of611 units, is one of the three developments that we own and manage in lmmokalee. We also have a track record in the administration of a Section 8 Housing Choice Voucher Program, a rental subsidy program, county-wide. One of the components of that program involves conducting inspections of housing units utilizing HUD's Housing Quality Standards. We stand ready to assist and partner with you and your department in meeting the local goals as described in the action plan, as well in the following manner: 1. Multifamily projects could be deeded to the Housing Authority for potential use as new affordable housing for families at 50% or less AMI with the understanding that deed restrictions would apply. 2. Scattered single family units could be deeded to the Housing Authority for use as scattered site affordable housing rentals where mortgages/gap financing may not be available for families with the understanding that deed restrictions would apply. 3. Work with the Continuum of Care partners in providing housing for homeless families or individuals, that at risk, elderly or special needs. 4. Work with local partners to create a land bank of properties. Thank you again for the potential opportunity to partner with the county in addressing the affordable housing issues in the community. 12 Agenda Item No. 16D3 November 18, 2008 Page 25 of 39 Sincerely, Esmeralda Serrata, PHM Executive Director Response #5 None. G. NSP INFORMA TION BY ACTIVITY (COMPLETE FOR M.Q! ACTIVITY) Activity #1 - Acquisition and Rehabilitation of Foreclosed Properties for Resale (I) Activitv Name: Acquisition and Rehabilitation of Foreclosed Properties for Resale (2) Activitv 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; . 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 Obiective: 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) Proiected Start Date: January 15, 2009 (5) Proiected End Date: July 30, 2013 (6) Responsible Organization: Collier County Department of Housing and Human Services; 3301 E Tamiami Trail, Building H, 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) Activitv 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; 13 Agenda Item No. 16D3 November 18, 2008 · a description of how the design of the activity will ensure continued affordability. Page 26 of 39 For acquisition activities, include: . discount rate For financing activities, include: . range of interest rates Narrative ResDonse: Collier County's Department of Housing and Human 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 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 Department of Housing and Human Services will consult the County's list of approved contractors and developers when rehabilitation is required. 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. The purchase price for all properties acquired with NSP Funds during the initial 18 month period shall be discounted at least 15 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 (I) 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 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. A portion of the NSP Funds used in the acquisition and/or rehabilitation may remain in the home or residential property to provide down payment assistance 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 IS percent from the current market-appraised value. The current market appraisal will be made in 14 Agenda Item No. 16D3 November 18, 2008 conformity with the requirements of the URA at 49 CFR 24.103 and completed within 60 days p~@'(ujJf&fer 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 shall prepare a written Rehabilitation Specification Report for each property to be used to describe in detail the required rehabilitation and establishment of a cost estimate for the work plan. 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. Collier County encompasses a large coastal area that subjects the residents to the risk of hurricanes and severe flooding, The County will encourage hurricane hardening and damage mitigation during rehabilitation. Collier County will ensure long term affordability though the use of a recorded lien against the property. If an owner who has been assisted though this program transfers title to the property before the affordability period expires, the assistance provided by the County will be subject to recapture. The County will monitor assisted units on an annual basis during the affordability period. All properties receiving assistance from the Neighborhood Stabilization Program (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 down payment assistance. 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 down payment 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 (I), and 92.254. The minimum affordability periods are as follows: . Upto$15,000-5Years . $15,001 to $40,000 - 10 Years . Over $40,001 - 15 Years . New Construction - 20 Years The Collier County Department of Housing and Human Service's shall maintain an active list of income- qualified and mortgage ready applicants. Under direction from the Housing Manager, staff members shall meet with and pre-qualify potential homebuyers on a regular basis. The 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 home buyer education from a U.S. Department of Housing and Urban Development certified counselor. In the event Collier County is unable to sell the acquired home or residential property, the County may, at its sole discretion, deed the property to the Collier County Housing Authority or nonprofit provider of affordable housing. All affordability restrictions listed above shall still apply and the unites) must be occupied by 15 Agenda Item No. 16D3 November 18, 2008 households earning no more than 120 percent of the local area median income. Special preferenflllsllalll1ilt39 given to those who are currently homeless, at risk of homelessness, elderly or special needs. All tenants must be income-qualified and rents may not exceed the limits as established in Section C. Definitions and Descriptions, (2) Definition of "affordable rents". 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. 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 (I) Activitv Name: Acquisition and Rehabilitation of Foreclosed Properties for Rental (2) Activitv 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 Obiective: 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) Proiected Start Date: January 15, 2009 (5) Proiected End Date: July 30, 2013 (6) Responsible Organization: Collier County Department of Housing and Human Services; 3301 E Tamiami Trail, Building H, Suite 211, Naples, FL 34112. The COWlty may solicit through Requests for Qualifications and/or Requests for Proposals organizations/partners to participate in the program. (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) Activitv 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. 16 Agenda Item No. 16D3 November 18, 2008 For housing related activities, include: Page 29 of 39 . 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 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 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 Department of Housing and Human Services will consult the County's list of approved contractors and developers when rehabilitation is required. 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. The purchase price for all properties acquired with NSP Funds during the initial 18 month period shall be discounted at least 15 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% oflocal area median income. 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 shall prepare a written Rehabilitation Specification Report for each property to be used to describe in detail the required rehabilitation and establishment of a cost estimate for the work plan. Additionally, the County will strongly encourage the incorporation of green building improvements to provide long-term affordability, increased sustain ability and attractiveness of housing and neighborhoods. Collier County encompasses a large coastal area that subjects the residents to the risk of hurricanes and severe flooding. The County will encourage hurricane hardening and damage mitigation during rehabilitation. Collier County will ensure long term affordability though the use of a recorded lien against the property. All rents charged shall conform to the Fair Market Rents (FMR) limits as defined in Section C. Definitions and Descriptions, Part 2, as amended from time to time by the U.S Department of Housing and Urban Development. The County will monitor assisted units on an annual basis during the affordability period. 17 Agenda Item No. 16D3 November 18, 2008 All properties receiving assistance from the Neighborhood Stabilization Program (NSP) will be 8ell\llleWbY a9 recorded second mortgage on the subject property in favor of Collier County. The interest rate shall be 0%. In the event the unites) is transferred, refinanced or operated for an activity deemed ineligible for assistance under NSP guidelines, the amount of assistance will be recaptured. The County will use the minimum affordability period of the federal HOME Investment Partnership Program, 24 CFR 92.252(a), (c), (e) and (t), 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 renter 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. The Collier County Department of Housing and Human Service's may partner with for-profit or nonprofit organizations to provide services such as, but not limited to, property management services, tenant selection and collection of monthly rental payments. Currently, the Collier County Housing Authority operates a Tenant- Based Rental Assistance (TBRA) Program. The agency has a proven track record of providing a compliant Section 8 Department of Housing and Urban Development rental subsidy program. The TBRA program is designed to include a preference for those who are currently homeless, at risk of homeless ness, elderly or special needs while meeting the fluctuating demands for housing. Collier County or its housing partner may contact local social service agencies for tenant referrals. Currently, the following agencies provide referrals for the TBRA program: St. Matthew's House, Shelter for Abused Women and Children, Salvation Army, Catholic Charities, Collier County School Resources and Immokalee Friendship House. Applicants seeking assistance through the TBRA program are required to meet income guidelines and are subject to criminal background screening. A minimum of 25 percent of the Collier County N SP 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 - Direct Homebuyer Assistance to Acquire Foreclosed Properties (I) Activitv Name: Direct Homebuyer Assistance to Acquire Foreclosed Properties (2) Activitv Type: Direct Homebuyer 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); 18 Agenda Item No. 16D3 November 18, 2008 o 570.202 eligible rehabilitation and preservation activities for homes and other res~iiH of 39 properties (HUD notes that rehabilitation may include counseling for those seeking to take part in the activity). (3) National Obiective: 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) Proiected Start Date: January 15, 2009 (5) Proiected End Date: July 30, 2013 (6) Responsible Organization: Collier County Department of Housing and Human Services; 3301 E Tamiami Trail, Building H, Suite 211, Naples, FL 341 12. 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) Activitv 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 ofbeneficiaries--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 Direct Homebuyer Assistance Activity shall assist first-time homebuyers by paying a portion of their down payment and closing cost expense. The activity provides assistance for the purchase of single family homes, duplexes, condominiums, townhouses or DCA approved manufactured homes. 19 Agenda Item No. 1603 November 18, 2008 The purchase price for all properties acquired with NSP Funds during the initial 18 month periocPslmlffi(jlf 39 discounted at least 15 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 must earn no more than ] 20 percent of the 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 (I) 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 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/5000-5]60.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 Neighborhood Stabilization Program (NSP) will be secured by a recorded second mortgage on the subject property in favor of Collier County. The down payment 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. AIl 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 (t), and 92.254. The minimum affordability periods are as follows: . Up to $15,000 - 5 Years · $15,00] to $40,000 -]0 Years · Over $40,00] - 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. 20 Agenda Item No. 16D3 November 18, 2008 In no event shall NSP Funds be used to assist households earning more than 120 percent local ar8alMe'Hlal! 39 income. All applicants must receive at least eight (8) hours of home buyer education from a U.S. Department of Housing and Urban Development certified counselor, Activity #4 - Homebuyer Education (I) Activitv Name: Homebuyer Education (2) Activitv Type: Homebuyer Education . 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 Obiective: 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) Proiected Start Date: January 15, 2009 (5) Proiected End Date: July 30, 2013 (6) Responsible Organization: Collier County Department of Housing and Human Services; 3301 E Tamiami Trail, Building H, 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 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) Activitv 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 beneficiariesnrental 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: 21 . range of interest rates Agenda Item No. 16D3 November 18, 2008 Page 34 of 39 Narrative Response: Collier County's Department of Housing and Human Services will partner with local nonprofit agencies to provide homebuyer education. All homebuyer education and counseling shall be performed by HUD certified counselors. Currently, there are approximately 6,000 foreclosed upon residential properties in Collier County with an estimated 750 additional foreclosures filed each month. In order to have a successful NSP Program, Collier County will partner with local nonprofits to educate prospective homebuyers about successful homeownership. Collier County currently contracts with two local agencies to provide homebuyer education. Each organization provides a minimum of eight (8) hours of education to each participant. The eight (8) hours is provided in the form of group education and private individual counseling. Annually this program serves over 800 prospective homeowners. The Empowerment Alliance of Southwest Florida focuses efforts in the lmmokalee area of Collier County. They are certified by the Neighbor Works Center of Homeownership Education and Counseling (NCHEC). This organization is also a HUD certified counseling agency and operates in an area designated by HUD as a revitalization community. The Collier County Housing Development COIporation focuses efforts throughout Collier County. They also are certified by the Neighbor Works Center of Homeownership Education and Counseling (NCHEC). This agency is currently seeking HUD certification. Recognizing that Collier County is a diverse community, classes are offered in multiple languages. Examples of topics covered in the homebuyer education classes include, but are not limited to: -Understanding Credit -Predatory Lending -Keeping your Home -Managing your Finances -Preparing for Homeownership -Getting a Mortgage Loan -Shopping for a Home -Home Maintenance -Responsibilities of Homeownership -The Closing Process Activity #5 - Demolition of Acquired Foreclosed Properties (I) Activity Name: Demolition of Acquired Foreclosed Properties (2) Activity Tvpe: Demolition and Clearance of Foreclosed Properties · Demolish blighted structures; · 24 CFR 570.20 I (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) Proiected Start Date: January 15, 2009 (5) Proiected End Date: July 30, 2013 22 Agenda Item No. 16D3 November 18, 2008 Page 35 of 39 (6) Responsible Organization: Collier County Department of Housing and Human Services; 3301 E Tamiami Trail, Building H, 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) Activitv Descrintion: 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 Program 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. 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 program. 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 (t), and 92.254. The minimum affordability periods are as follows: 23 · Up to $15,000 - 5 Years . $15,001 to $40,000 - 10 Years . Over $40,001- 15 Years · New Construction - 20 Years Agenda Item No. 16D3 November 18. 2008 Page 36 of 39 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 #6 - Land Banking of Acquired Properties (I) Activitv Name: Land Banking of Acquired Properties (2) Activitv Type: Land Banking of Acquired Properties · Establish land banks for homes that have been foreclosed upon; . 24 CFR 570.201(a) Acquisition; · 24 CFR 570.20l(b) Disposition. (3) National Obiective: 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) Proiected Start Date: January 15, 2009 (5) Proiected End Date: July 30,2013 (6) Responsible Organization: Collier County Department of Housing and Human Services; 3301 E Tamiami Trail, Building H, 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) Activitv 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 he 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: 24 . range of interest rates Agenda Item No. 16D3 November 18, 2008 Page 37 of 39 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 banle The purchase price for all properties acquired with NSP Funds during the initial 18 month period shall be discounted at least 15 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 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 Neighborhood Stabilization Program (NSP) will be secured by a recorded second mortgage on the subject property in favor of Collier County. The 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. Subsequent redevelopment shall abide by all local and state building codes. Collier County will require home -. rehabilitation to meet, or exceed, current Florida Building Code (FBC). The current code used by Collier County is the 2004 FBC; effective March 1, 2009 the code will be updated to 2007 FBe. 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. Collier County encompasses a large coastal area that subjects the residents to the risk of hurricanes and severe flooding. The County will encourage hurricane hardening and damage mitigation during rehabilitation. The County will use the minimum affordability period of the federal HOME Investment Partnership Program, 24 CFR 92.252(a), (c), (e) and (t), 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 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. 25 Agenda Item No. 16D3 November 18, 2008 Collier County shall place program income derived from the sale of the home or residential prop~ilfuqj 39 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 I. Total Budget: Narrative ResDonse: 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 ResDonse: 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 - househo Ids 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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