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Item T4 Sep 16 02 07:58a Growth Mc;t (305)289-2854 p. 10 ~ '/ BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: 18 September 2002 Bulk Item: Yes No ~ Division: Growth Manalitement Department" Marine Resources AGENDA ITEM WORDING: Discussion of options tor providing financial support to owners of on-site wastewater systems who may be compelled to hook up to an investor-owned sewage system and who demonstrate financial hardship as provided in Board Resolution 225-2002. ITEM BACKGROUND: Chapter 15.5-21 (b) Monroe County Code and Resolution 225-2002 provide a vehicle for allowing installment payments for those who demonstrate financial hardship when paying mandatory hook-up fees for wastewater service, The attached document provides recommendations for detennining tinancial hardship and recommendation as to which agency would be best suited to manage any financial assistance programs deemed necessary by the Board. PREVIOUS RELEVANT BOCC ACTION: Chapter 15.5-21 (b) Resolution 225-2002 CONTRACT/AGREEMENT CHANGES: NA ST AFF RECOMMENDATIONS; NA TOTAL COST: None BUDGETED: Yes No COST TO COUNTY: None REVENUE I'RODUCING: Yes No ~ AMOUNT Per Month Year DOCUMENTATION: Included X To Follow _ Not Required T1 APPROVED BY: County Atty NA DIVISION DIRECTOR APPROVAL: DISPOSITION: AGENDA ITEM NO.: BC020990 08/28/02 I :45 PM Sep 16 02 07:58a Growth Mgt (305)289-2854 p. 11 Memorandum Department of Marine Resourc~ 2798 Overseas Highway, Suite 420 Mal'athon, Florida 33050 Voice: (305) 289 2507 FAX: (305) 289 2536 Email: garretLl1.(iiJmail.state.t1.us or garr~ttgeo(tv.hotmail, com Board of County Commissioners Mayor Charles "Sonny" McCoy, Dist. 3 Mayor Pro Tern Dixie Spehar, Disl. I Commissioner George Neugent, Dist. 2 Commissioner Nom Williams, Dist. 4 Commissioner Murray Nelson, Dist. 5 DATE: 13 September, 2002 SUBJECT: Monroe County Board of Commissioners George Garrett, Director of Marine Resources ~ f~ lbe definition of financial hardship as dirccJ in Board Resolution 225.2002. TO: FROM: INTRODUCTION Section 15.5.21 (b) Monroe County Code and Resolution 225-2002 provide a vehicle for allowing installment payments for those who demonstrate financial hardship when paying mandatory hook-up fees for wastewater service. This document presents information upon which the Commission can determine hardship as expressed in both the Code and Resolution 225-2002. It also provides information concerning the availability of Community Development Block Grant and SHIP funds for use in offsetting the costs of hook-up fees and for on-property improvements and/or the decommissioning of on-site wastewater systems. A recommendation is provided for defining the term "hardship," herein expressed as "low" and "very low" income categories. BACKGROUND The Commission has consistently recognized the impact of required wastewater improvements on its citizens. As such Section 15.5.21 (a) and (b) provide a vehicle to help reduce the financial burden on those households required to hook- up to a sewer system when it becomes available. Homeowners who qualify may pay hook-up fees monthly over a period of five years at no interest. BC01099I 09/05102 8:03 AM Sell' 16 02 07:59a Growth Mgt (305)289-2854 F. 12 At its May regular meeting, the Board of County Commissioners adopted Resolution 225-2002 allowing the County Administrator or his designee to determine the actual financial meaning of the term hardship as expressed in the County Code. The Resolution also indicates that financial hardship "shall take into account the owner's net worth, income from other sources, the liquidity of assets, the legal obligations to provide care for others, and any other financial information deemed appropriate by the staff..." Staff believes that this may be too rigorous an approach an suggests another below. ELIGIBILITY CRITERIA Staff believes that the only necessary information to determine hardship for the purposes of Chapter 15.5-21 (b) and Resolution 225-2002 is the value of median income for Monroe County and the definition of "low" and "very low" income levels. The Monroe County Housing Authority uses these values, as do many federal, state, and local affordable housing programs, to determine eligibility for similar programs. The determination of hardship would be made above and beyond those criteria adopted by the Board foraffordability and reasonableness (i.e. $2,500 hook-up fee and $35 monthly fee). The 2002 median income in Monroe County is $55,100 in 2002. Very low and low income levels are defined based on the median income and can be adjusted for family size, as noted in the attached document from Rick Casey at the Monroe County Housing Authority. Very-low income levels are those between 0% and 50% of the median income level. Low income levels are those which lie between 50% and 80% of the median income. The Monroe County Housing Authority also has SHIP funds available to assist individuals at low and very low income levels and believes that it will be receiving a Community Development Block Grant (CnBG) within the next month. Should the CDBG grant come to fruition as expected, $487,500 will become available for sewer hook-up costs. SHIP funds may be used more broadly than CDBG funds to assist homeowners in many improvements required of their properties, including those that may be off- site, such as improvements to a sewer plant. CDBG funds on the other hand technically may only be used for on-site property improvements. 2 Sep 16 02 07:59a Growth Mgt (305)289-2854 p.13 Depending on the number of individuals that qualify, the money available under either program will be limited. As such CDBG funds, may not cover all costs associated with wastewater system hook-up, but can be used to offset the on-site improvements which typically lie outside normal hook-up fees. These on-site improvements include installation of lateral sewer lines from the street to the house and the decommissioning of old on-site wastewater systems ($1,500 - $2,000). Thus, this program can be used to assist homeowners in ways beyond the scope of Resolution 225-2002 and would be used to assist low and very-low income individuals or families. The Monroe County housing Authority, through one of its representatives - Rick Casey, indicates that it stands ready to work with Monroe County and its citizens to assist in lowering sewer hook-up costs. It is the logical and willing agency to make the determination of hardship, administratively, and can on that basis also provide SHIP and CDBG funds to those individuals who qualify. Another issue which is paramount to providing assistance to those on Stock Island and in Key West Resort Utility is the fact that there are a number of mobile home parks in the area whose residents do not own the property on which they reside, but who would qualify for hardship consideration. The Monroe County Housing Authority has the ability to provide grants to park owner funds under theCDBG program as long as conditions are met which would leave spaces available to other hardship applicants in the future. The specific conditions applied to a mobile home park, such as the number of park spaces or the length of time held, would be determined in part by the amount of funds that could be made available to each individual applicant. Thus, if a large amount of money per applicant were available to individual applicants in the park, a higher standard would be required for maintaining the "hardship" status of those physical spaces in the park and for farther into the future. This is something that would be left to the Housing Authority to negotiate with individual mobile home park owners RECOMMENDATION . Staff recommends that the definition of hardship as noted in Chapter 15.5-21 (b) and Resolution 225-2002 should be based on the median income for Monroe County and the definitions of low and verylow income brackets. The median and low/very low income brackets are shown in the attached document from Rick Casey of the Monroe County Housing Authority. This document should become the official definition of hardship for Monroe County. It will be 3 Sep 16 02 08:00a Growth Mgt (305)289-2854 p. 14 periodically adjusted as the median income changes. The Commission will be informed of these adjustments. . Staff believes that the Monroe County Housing Authority should become the agency who determines hardship as the agency with the administrative experience to do so and the agency with the capability to provide additional financial assistance to individuals or families who qualify. The Monroe County Housing Authority should begin to work with potential applicants in the Stock Island area, within Key West Resort Utility immediately or as soon as feasible. . Staff recommends that a household which is determined to have a hardship, be not be eligible to utilize the five year payment approach at no interest if they accept a SHIP or CDBG grant. 4 Sell' 16 02 07:58a Growth Mgt (305)289-2854 10.8 some point a sewer may become available. In addition as for Coldspot areas, it may be difficult to spend the funds, provided as individual homeowner grants, as expeditiously as desired, Option 3. Allocate to an identified on-going project area Another approach to utilizing the state funds for cesspit replacement is to allocate the funds to an existing community type wastewater project such as one of the FEMA projects. The most obvious project, which is cUlTently closest to moving into the construction phase, is the Key Largo Park project. In addition, the funds may allow additional properties to be served within the overall project area, RECOMMENDATION . State funds for cesspit replacement should be made directly to the utility to write down the cost for specifically identified homeowners with unknown wastewater systems. Staff believes that the most expeditious way to expend the remaining state funds for cesspit replacement while minimizing administrative effort and time is to utilize the funds in an existing community wastewater project. . Staff recommends the Key Largo project at Key Largo Park as the appropriate project to utilize the funds as it is probably the closest to entering the construction phase. The project is an expandable project where the Conch Key and Baypoint projects are not. As this project utilizes state dollars made available in the 2002 state legislative year, contractual commitments are required by March of 2003, thus defining closely the time frame to commit cesspit replacement dollars as well. . County funds originally set aside for cesspitreplacement, should be utilized to assist in reducing the costs in the broader spectrum of projects that the County is currently involved in, including Key Largo, Remaining County funds, originally utilized to match the state funds could be used to fund the Key Largo project, further extending the user base of the project. This would help reduce per household costs to the wastewater system users. However, since the use of County funds is flexible, an exact amount should not be dedicated to this project. Instead, these funds can also be utilized to assist in lowering the 6 Sep 16 02 07:58a Growth Mgt (305)289-2854 p.9 costs in other project areas or in providing the necessary match for the EP A decentralized wastewater project, should the Commission accept staffs recommendation to move forward on it. It may also be utilized to assist the Housing Authority in providing funds to those defined as having a hardship when paying hook-up fees for centralized wastewater systems. 7 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: 18 September 2002 Bulk Item: Yes No ~ Division: Growth Management Department" Marine Resources AGENDA ITEM WORDING: Discussion of options for providing financial support to owners of on-site wastewater systems who may be compelled to hook up to an investor-owned sewage system and who demonstrate financial hardship as provided in Board Resolution 225-2002, ITEM BACKGROUND: Chapter 15,5-21 (b) Monroe County Code and Resolution 225-2002 provide a vehicle for allowing installment payments for those who demonstrate financial hardship when paying mandatory hook-up fees for wastewater service. The attached document provides recommendations for determining financial hardship and recommendation as to which agency would be best suited to manage any financial assistance programs deemed necessary by the Board, PREVIOUS RELEVANT BOCC ACTION: Chapter 15,5-21 (b) Resolution 225-2002 CONTRACT/AGREEMENT CHANGES: NA STAFF RECOMMENDATIONS; NA TOTAL COST: None BUDGETED: Yes No COST TO COUNTY: None REVENUE PRODUCING: Yes No ~ AMOUNT Per Month Year APPROVED BY: County Atty NA v DIVISION DIRECTOR APPROVAL: DOCUMENTATION: Included To Follow ~ Not Required AGENDA ITEM NO.: " Y DISPOSITION: BC020990 08/28/02 I :45 PM AGENDA ITEM WITH LATE DOCUMENTATION DIVISION J1~ ililttfnd / / ( DEPARTMEN~~ hr DATE ITEM WILL BE AVAILABLE 9--'1-a:{ AGENDA ITEM NUMBER 2002 MONROE COUNTY INCOME LIMITS 2002 Monroe County. Median Income $55.100 Qualifying Income Maximums, Adjusted for Family Size H h Id S' v L L M d ouse 0 lze erv ow ow o erate One Person $19,300 $30,850 $46,320 Two Persons $22,050 $35,250 $52,920 Three Persons $24,800 $39,650 $59,520 Four Persons $27,550 $44,100 $66,120 Five Persons $29.750 $47,600 $71 ,400 Six Persons $31,950 $51 ,150 $76,680 Seven Persons $34,150 $54,650 $81,960 EiQht Persons $36,350 $58,200 $87,240 Each county's median income and the numbers derived from median are used to implement a variety of federal, state and local affordable housing programs. Please check with the agency responsible for implementing specific programs to determine how these figures may impact your project. Median income is published annually by the U.S. Department of Housing and Urban Development. The Florida Housing Finance Corporation (FHFC) expands on the federal determination relative to the implementation of state programs. Effective Date: January 31, 2002 Prepared by: Special Programs Office, Monroe County Housing Authority 1403 12th Street, Key West, Florida 33040 (305) 292-1221 Categories: Very Low Low Moderate = 0% to 50% of Median 50% to 80% of Median 80% to 120% of Median = ~1