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Agenda 04/08/2008 Item #10B Agenda Item No. 108 April 8, 2008 Page 1 of 5 EXECUTIVE SUMMARY Obtain direction from the Board of County Commissiouers on restricting the use of remaining funds for deferral of Collier County impact fees for owner-occupied affordable housing units for FY08. OBJECTIVE: That the Board of County Commissioners (Board) provide direction on restricting the use of remaining funds for deferral of 100% of Collier County impact fees for owner-occupied affordable housing units for FY08. CONSIDERATIONS: Article IV of Chapter 74 of the Code of Laws and Ordinances established a program to defer impact fees for qualified affordable housing. For FY08, Collier County has committed $2,835,500 for the deferment of Impact Fees for eligible owner occupied affordable housing. This number represents 3% of the total Impact Fees collected in the prior Fiscal Year. Additionally, Collier County has committed $750,000 for the deferment of Water System Impact Fees and Sewer System Impact Fees. The Ordinance also allows for the deferral ofImpact Fees on a total of225 rental apartment units per fiscal year. An Affordable Housing Workshop was held on March 4, 2008 to address the status of affordable housing in Collier County. At this time, the Board of County Commissioners directed staff to return with information on restricting the use of the remaining funds for deferrals to those households earning 60% of the Area Median Income (AMI) or less. Staff was instructed to process for Board approval all deferral requests received as of March 4, 2008. Staff had a total of 20 requests. If those requests are approved by the Board, combined with what has already been approved in FY08, we will be left with $486,684.80 to defer impact fees, excluding water and sewer. We will have exhausted our $750,000 water and sewer deferral budget for FY08. All owner occupied impact fee deferral applications that have been approved in FY08 were evaluated to determine what percentage of those approved were for households earning 60% AMI or less, and what percentage were households earning between 60.1 % and 80% AMI. The evaluation determined that 82% (78 deferrals) of the households assisted earned 60% AMI or less, while 18% (17 deferrals) of the households earned between 60.1 % and 80% AMI. Additionally, ofthe 17 deferrals determined to be greater than 60% AMI, but less than 80% AMI, ] I were to assist household purchasing Habitat for Humanity Homes (based on staff's income analysis). Of the 95 owner occupied deferrals approved by the Board in FY08, 86 were to assist households purchasing from Habitat for Humanity. Additionally, the Board has approved developer deferrals that will require an owner agreement in the future. For exanlple, Lermar Homes has transferred 7 deferrals to new owners but still have 41 additional developer deferrals outstanding. These transfers to owner require no new money from the County. However, many developers', including Lermar Homes, target market are those households earning between 60.1 % and 80% of the Area Median Income. - Attached as an exhibit is the list of owner occupied deferral requests received prior to March 4, 2008. These represent a commitment to approve, if eligible, the deferral for households earning up to 80% AMI. In addition to these owner occupied deferrals. the Board has approved numerous developer deferral agreements. The deferral of the funds in this case occurs at the time of approval of the developer deferrals. Therefore. when a developer sells the unit and that household requests an impact Agenda Item No. 108 April 8. 2008 Page 2 of 5 fee deferral, no new money is being deferred; simply the lien is transferred from developer to new owner. Developers have contract in place with prospective purchasers who will require the impact fee deferral in order to make the unit affordable. Staff would like direction to determine if the transfer agreements from developer to owner are exempt from any potential restrictions imposed today. Staff requests Board direction and offers the following four options for consideration: Option One For FY08, restrict the use of remaining funds to households earning 60% of the AMI or less. If Board directs staff to implement this option the attached Resolution would be approved and the Chairman authorized to sign. This restriction would exclude transfer agreements from developer to owner should Board direct. Option Two For FY08, allocate a certain percentage of remaining funds to households earning 60% AMI or less, and a percentage to those households earning 80% AMI or less. For example, Board could direct staff to use 80% of the remaining funds for 60% AMI or less and 20% of the funds for 80% AMI or less. This example would allocate the remaining funds based on the FY08 income categories that have been served. Staff would seek Board direction as to the amount that should be allocated to the two income categories. Option Three For FY08, defer 100% of Collier County impact fees for households earning 60% AMI or less. Additionally, defer a certain percentage of Collier County impact fees for household earning 80% AMI or less (i.e. 50% or 75%). Staff would seek Board direction as to the percentages that should be deferred for the two income categories. Option Four For FY08, leave the Collier County impact fee deferral program unchanged. This would continue the practice of processing requests on a first-come first-served basis. regardless of income level. The maximum income level for owner-occupied deferrals would remain 80% AMI or less. FISCAL IMPACT: This program defers Collier County impact fees. Actual dollar amounts deferred will be determined at the time of building permit application. Although it is expected that the County will ultimately collect these deferred fees (generally upon the sale of the residence), there is no guarantee as to if, or when, this would occur. GROWTH MANAGEMENT IMPACT: None. LEGAL CONSIDERA nONS: Dependent on Board direction. STAFF RECOMMENDATION: Obtain direction from the Board of County Commissioners on restricting the use of remaining funds for deferral of Collier County impact fees for owner-occupied affordable housing units for FY08. PREPARED BY: Frank Ramsey, Housing Manager, Housing and Human Services RESOLUTION NO. 08"_ Agenda Item No. 108 April 8, 2008 Page 3 of 5 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, DIRECTING THE COUNTY MANAGER TO TEMPORARILY LIMIT REVIEW AND APPROVAL OF APPLICATIONS FOR IMPACT FEE DEFERRAL AGREEMENTS ON OWNER.OCCUPIED DWELLINGS. AS PROVIDED BY SECTION 74-401 OF THE CODE OF LAWS AND ORDINANCES, TO APPLICANTS WITH ANNUAL HOUSEHOLD EARNINGS THAT ARE 60% OR LESS OF THE AREA MEDIAN INCOME. WHEREAS, on March 13,2001, the Board of County Commissioners adopted Ordinance No. 2001-13, the Collier County Consolidated Impact Fee Ordinance, repealing and superseding all of the County's then existing impact fee regulations, and consolidating all of the County's impact fee regulations into that one Ordinance, codified in Chapter 74 of the Collier County Code of Laws and Ordinances ("Code"); and WHEREAS, Article IV of Chapter 74 of the Code established a program to defer impact fees for qualified affordable housing; and WHEREAS, Section 74-401 (b) of the Code sets forth the criteria by which applicants with owner-occupied dwellings may qualify for affordable housing impact fee deferrals, including specific limitations on a household's Area Median Income; and WHEREAS, current economic conditions have significantly lowered the average price of a single-family home in Collier County, and it is necessary to re-evaluate the County's Impact Fee Deferral Program to ensure that it benefits the families most in need. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that as of the date of this Resotution and until otherwise directed by the Board of County Commissioners, the County Manager shalllirnit his review and approval of applications for Impact Fee Deferral Agreements on owner-occupied dwellings, received on or after March 4, 2008, to those applicants with annual household earnings that are 60% or less of the Area Median Income. This Resolution adopted after motion, second and majority vote this _ day of ,2008. ATTEST: DWIGHT E. BROCK, CLERK BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY. FLORIDA , Deputy Clerk By: TOM HENNING, CHAIRMAN By: Jeffre Chief w unty Attorney Page 1 of 1 Agenda Item NO.1 OB April 8, 2008 Page 4 of 5 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS Item Number: Item Summary: 108 Meeting Date: Obtain direction from the Board of County Commissioners on restricting the use of remaining funds for deferral of Collier County impact fees for owner-occupied affordable housing units for FY08. (Marcy Krumbine, Housing and Human Services Director) 4/812008 9:00:00 AM Prepared By Frank Ramsey SHIP Program Coordinator Date Public Services Housing and Human Services 3/20/20084:09:50 PM Approved By Marcy Krumbine Director Date Public Services Housing & Human Services 3/24/2008 11 :01 AM A pproved By Jeff Klatzkow Assistant County Attorney Date County Attorney County Attorney Office 3/24/20082:26 PM Approved By Marla Ramsey Public Services Administrator Date Public Services Public Services Admin. 3/251200810:28 AM Approved By Sherry Pryor Management & Budget Analyst Date County Manager's Office Office of Management & Budget 3131/20088:43 AM Approved By John A. Y onkosky Director of the Office of Management Date County Manager's Office Office of Management & Budget 3/31/20089:02 AM A pproved By Leo E. Ochs, Jr. Board of County Commissioners Deputy County Manager Date County Manager's Office 3/31/20089:51 AM fiJe://C:\Ag:endaTe5t\Exoort\ J 04-Aoril%208. %202008\ 1 0.%20COI JNTY%20MA NAGFR%2.. 400008 Collier County Department of Housing and Human Services Agenda Item No. 10B April 8, 2008 Page 5 of 5 Memo To: Marcy Krumbine - Director From: Frank Ramsey - Housing Manager Date: March 31, 2008 Reo Pending Impact Fee Deferral Applications Below please find an outline of the pending impact fee deferral applications received by our department prior to March 4, 2008. Applicant or Number of Number of Total Amount of Builder Agreements Units Money Deferred Lennar Homes 1 10 $ 213,910.46 Lennar Homes 1 10 $ 201,106.44 Liberus 1 1 $ 12,442.46 Jules 1 1 $ 12.442.46 Charles 1 1 $ 12.442.46 Jouisance 1 1 $ 12,442.46 Cherisme 1 1 $ 12,442.46 Bolivar 1 1 $ 12.442.46 Prime 1 1 $ 12,442.46 Holland 1 1 $ 12,442.46 Mateo 1 1 5 12,442.46 Bazile 1 1 5 12,442.46 Mercure 1 1 5 12,442.46 Martinez 1 1 $ 12,442.46 Louimare 1 1 5 12,442.46 Silguero 1 1 5 23,351.64 Moser. 1 1 $ - Brodbeck" 1 1 $ - Newhouse" 1 1 $ - L1yod" 1 1 $ - TOTALS 20 38 $ 600,120.52 "These four units have already had the fees deferred in the Developer's name. Therefore, no new money being deferred should the Board approve these four requests.