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Item J1 . CM ounty of onroe BOARD OF COUNTY COMMISSIONERS  Mayor Heather Carruthers, District 3 Mayor Pro Tem George Neugent, District 2 TheFloridaKeys Danny L. Kolhage, District 1 David Rice, District 4 Sylvia J. Murphy, District 5 County Commission Meeting May 18, 2016 Agenda Item Number: J.1  Agenda Item Summary #1638 BULK ITEM: DEPARTMENT: No Planning/Environmental Resources TIME APPROXIMATE:STAFF CONTACT: Mayte Santamaria (305) 289-2500 None. AGENDA ITEM WORDING: Approval of a Resolution establishing an interim flat-fee of $400.00, or applying the existing qualification of occupants, and direction related to two requests to waive the administrative fees to reimburse the County for the coordination of affordable housing. ITEM BACKGROUND:(1) In April 2016, the County received requests from Victoria (2) Castellanos, owner of affordable housing unit #34 in Islander Village, and from Gary Lee Lovette II, owner of affordable housing unit #35 in Islander Village, and Nickolas Frank Formico, Jr., and Victoria Ashley Commander-Formico, sub-lessees of affordable housing unit #35 in Islander Village, to waive the 1.5% Administrative Fee stipulated in the Ground Lease between Monroe County and Islander Village, LLC. Per the ground lease, the 1.5% of the purchase price is an administrative fee to be paid to the County for review of the contract and assistance with coordinating the closing on the Affordable Housing Unit. Section 12.08 Administrative Fees The relevant ground lease provision states: ;MXLXLII\GITXMSRSJ XLIMRMXMEPWEPIWF]-RMXMEP0IWWIIXLI0IWWSVSVMXWHIWMKRIIWLEPPFIIRXMXPIHXSGLEVKIXLVIIERHSRI LEPJTIVGIRX ½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¡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¡ JSVERS[RIV [LSTYVGLEWIHLMWSVLIV%JJSVHEFPI,SYWMRK9RMX[MXLSYXEGXYEPGSRWXVYGXMZISVVIKYPEXSV]RSXMGI SJXLITSXIRXMEPETTPMGEFMPMX]SJEKVIEXIVTIVGIRXEKIJII County staff notified Ms. Castellanos, Mr. Lovette, and Mr. and Mrs. Formico, that staff could not administratively waive the Administrative Fee, and that these requests would need to go before the BOCC. In the interim, Ms. Castellanos, Mr. Lovette, and Mr. and Mrs. Formico have agreed to escrow agreements to establish interest-bearing escrow accounts for the 1.5% Administrative Fee fee is $4,950, or $9,900 total. At the February 2016 meeting, the BOCC waived the administrative fee for Steven and Jessica Foureman (#38 Islander Village) as well as Paul Reed and Sophie Tornek (#13 Park Village) and re that the maximum sales price is not exceeded. Staff is currently in the process of calculating that flat fee and amending those ground leases. However, amending leases will take some time, as the leasor's must be contacted and agree to the amendments and the BOCC must approve amendments. Staff is asking for this interim resolution to allow real estate transactions to close without escrowing large lump sums of money based on the currently requested 1.5% fee. As discussed on previous occasions with the BOCC, the County has limited resources for the monitoring and qualifying of affordable housing. The BOCC recommended establishing a fee based on the staff time it takes to process qualified applicants and tracking units. PREVIOUS RELEVANT BOCC ACTION: February 10, 2016 - CONTRACT/AGREEMENT CHANGES: n/a STAFF RECOMMENDATION: Approval of a Resolution establishing an interim flat-fee of $400.00, cial direction. Direction on the two requests from (1) Ms. Castellanos and (2) Mr. Lovette and Mr. and Mrs. Formico. DOCUMENTATION: AFH Interim Admin. Fee Resolution Excerpts of AFH ground leases 4EGOIX4K . FINANCIAL IMPACT: Effective Date: Expiration Date: Total Dollar Value of Contract: Total Cost to County: Current Year Portion: Budgeted: Source of Funds: CPI: Indirect Costs: Estimated Ongoing Costs Not Included in above dollar amounts: Revenue Producing: If yes, amount: Grant: County Match : Insurance Required: Additional Details: REVIEWED BY: Mayte Santamaria Completed 04/27/2016 7:48 PM Peter Morris Completed 04/28/2016 11:42 AM Budget and Finance Completed 04/28/2016 12:03 PM Maria Slavik Completed 04/29/2016 7:18 AM Christine Hurley Completed 05/02/2016 2:15 PM Mayte Santamaria Completed 05/02/2016 2:29 PM Kathy Peters Completed 05/02/2016 2:56 PM Board of County Commissioners Pending 05/18/2016 9:00 AM 4EGOIX4K .E 4EGOIX4K .E 4EGOIX4K .E 4EGOIX4K .F 4EGOIX4K .F 4EGOIX4K