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Item O6BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: 15 October 2003 Division: Growth Management Bulk Item: Yes No X Department: Marine Resources AGENDA ITEM WORDING: Approval of a Resolution supporting funding to serve low and very low income households (as defined by HUD) within Key Largo Park and Trailer Village, Conch Key, Baypoint, and Stock Island wastewater projects and providing for an Implementation Plan to be administered through the Monroe County Housing Authority. ITEM BACKGROUND: In July of 2002, the Board adopted Resolution 306-2002 providing general guidelines to assist low and very low income households with required wastewater improvements related to their property. Working with the Florida Keys Aqueduct Authority (FKAA). FEMA and the Monroe County Housing Authority, a commitment was made to fund individual households meeting the low and very low income categories at the 70% (low income) and 90% (very low income) subsidy level. The County must meet this commitment for the FEMA projects through its own funding sources or subsidy funds will be taken away from project construction dollars and will raise the per EDU cost of the project. However, the assistance provided in the attached Implementation Plan includes assistance for renters through grants to rental property owners. This is not a requirement of the FEMA funding program. CDBG funds were assumed to cover most of the costs for low and very low-income subsidies across all current projects, but they will not. Based on current estimates the CDBG funds will cover approximately half of the Stock Island (KWRU) project with an assisting match of $200,000 from the County (Fund 100 — Housing Authority funds). Thus, we must commit funds to cover the County's obligations for remaining applicants on Stock Island, Baypoint, Conch Key and Key Largo wastewater. The estimated costs to cover low and very low income households is $2,503,209. For the time being these funds are expected to be part of a dedicated County revenue source, however staff expects to shift the obligation of these sources to future CDBG grant dollars. The program will be administered through the Monroe County Housing Authority under the guidance of the attached Resolution and Implementation Plan. PREVIOUS RELEVANT BOCC ACTION: July 2002 - Resolution 306-2002 CONTRACT/AGREEMENT CHANGES: NA STAFF RECOMMENDATIONS; Approval TOTAL COST: $2,503,209 COST TO COUNTY: $1,865,709 REVENUE PRODUCING: Yes No X APPROVED BY: County Atty X O DIVISION DIRECTOR APPROVAL: i DOCUMENTATION: DISPOSITION: BUDGETED: Yes No SOURCE OF FUNDS: Fund 304 / Fund 100 Per Month Risk Man )r of Growth Included X To Follow Not Required AGENDA ITEM NO.: Year RM BC03101 OO.doc 09/26/03 4:51 PM Marine Resources RESOLUTION NO. 2003 A RESOLUTION OF THE MONROE COUNTY BOARD OF COMMISSIONERS COMMITTING FUNDS TO ASSIST LOW AND VERY LOW INCOME HOUSEHOLDS IN THE PAYMENT OF WASTEWATER CONNECTION FEES AND IN MAKING NECESSARY AND RELATED ON -SITE IMPROVEMENTS FOR PROJECT AREAS LOCATED IN THE STOCK ISLAND, BAYPOINT, CONCH KEY, AND KEY LARGO (KEY LARGO TRAILER VILLAGE, KEY LARGO PARK AND SUNSET WATERWAYS) WASTEWATER PROJECT AREAS, BASED ON SPECIFIC FUNDING PROJECTIONS PROVIDED BY THE MONROE COUNTY HOUSING AUTHORITY AND ADOPTING AN IMPLEMENTATION PLAN FOR UTILIZATION OF COUNTY FUNDS TO BE ADMINISTERED THROUGH THE MONROE COUNTY HOUSING AUTHORITY FOR ELIGIBLE HOUSEHOLDS SEEKING ASSISTANCE UNDER THE PROGRAM. WHEREAS, the County currently has oversight for the following four wastewater projects either under construction or nearing the point at which construction will begin: o Stock Island o Baypoint o Conch Key and o Key Largo (Key Largo Trailer Village, Key Largo Park, and Sunset Waterways); and WHEREAS, Resolution 306-2002 commits the County to assist "economically disadvantaged households" in the low and very low income categories as defined by HUD; and WHEREAS, the FEMA, which is providing funding for three of the projects noted above, requires that the County mitigate financial impacts to economically disadvantage households as part of its Environmental Justice standards; and WHEREAS, the attached table (Attachment 1 — Funding Estimates) documents the estimated number of affected households from 2000 U.S. Census BC0310101 Res SWMP LowlncFunding ImpPlan.doc 10/02/03 4:56 PM Marine Resources records, a projected number of applicants for each area (at a 50% participation level), and the necessary funding commitment (with a $2,700 connection fee assumed); and WHEREAS, the County wishes to establish arV implementation plan for the provision of funds to assist low and very low income qualified households in making payments toward wastewater connection fees and wastewater related on - site expenses; and WHEREAS, a Interlocal Agreement between the County and the Monroe County Housing Authority (MCHA) exists, which allows the MCHA to implement this program on behalf of the County, now, therefore, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS, MONROE COUNTY, FLORIDA THAT: Section 1. The Board shall reserve sufficient funds from available funding sources , including an existing Community Development Block Grant (CDBG) to meet the estimated financial assistance needs of low and very income households as itemized for each of the following four project service areas: 1. Stock Island Connection Costs Abandonment / Lateral Costs 2. Baypoint Connection Costs Abandonment / Lateral Costs 3. Conch Key Connection Costs Abandonment / Lateral Costs 4. Key Largo Connection Costs Abandonment / Lateral Costs Total Connection Costs Abandonment / Lateral Costs Grand Total $ 8521390 $ 9475100 $ 86,098 $ 95,664 $ 39,492 $ 43,880 $ 2071751 $ 230,834 $15185,730 $1,317,478 $2,503,209 Section 2. The estimated funds required are considered approximate based on available census data and 50 percent program participation. These numbers BC0310101 Res SWMP LowincFunding ImpPlan.doc 10/02/03 4:56 PM Marine Resources will be adjusted as needed based on the actual number of applicants from low and very low income households participating and on actual capital construction costs. Section 3. Such funds and their use for the purposes set out herein shall be administered through the Monxoe County Housing Authority as provided for in the attached Implementation Plata (Attachment 2). Section 4. The Board adopts the attached Implementation Plan (Attachment 2) as the criteria by which qualification for assistance will be determined and the means by which the amount of funding assistance to be provided each applicant will be established. This implementation shall be utilized for all wastewater funding assistance projects unless otherwise specifically identified or modified. Background for the Implementation Plan is provided in Attachment 3, provided for information purposes. PASSED AND ADOPTED by the Board of County Conurdssioners, Monroe County, Florida at a regular meeting of said Board held on the day of October A.D., 2003. Mayor Dixie Spehar Mayor Pro Tem Murray Nelson Commissioner George Neugent Commissioner Charles "So -any" McCoy Commissioner David Rice BOARD OF COUNTY COMMISSIONERS MONROE COUNTY, FLORIDA MAYOR/CHAIR PERSON (SEAL) ATTEST- DANNY 1. KOLHAGE, CLERK BY: APPROVED AS TO FORM AND DEPUTY CLERK UUAL SUFFICIENCY BY' - --- - A7roRNEY's OFFICE BC0310301 rw SWMP LowhrFunding DVPlsn.doc 10/02/0 4:56 FM I/I 30`dd 91SEZ63S0E'QI 30I330 MoNROE COUNT . , APP OVA cfi R A3813T T /e0U A11V AZNf103 3ONNOW = W0dd 0S : 60 EO-EO-130 Marine Resources Attachment 1 Funding Estimates BC0310101 Res SWMP LowlncFunding ImpPlan.doc 10/02/03 4:56 PM Marine Resources Estimated Funding Commitment Necessary to Meet Needs of Financially Disadvantaged Households Project Area Est. No. of Eligible Households Projected No. of Applicants* Projected Funding Commitment** Stock Island 763 382 $15799,490 Baypoint 82 41 $181,762 Conch Key 36 18 $83,372 Key Largo 193 97 $438,585 * - Estimated maximum program participation — 50 % * * - 70 % grant for low income households 90% grant for very low income households Assumed $2,700 Connection Fee Assumed $3,000 maximum on -site improvement cost BC0310101 Res SWMP LowlncFunding ImpPlan.doc 10/02/03 4:56 PM Marine Resources Attachment 2 Implementation Plan for Wastewater Assistance for Low and Very -Low Income Households BC0310101 Res SWMP LowlncFunding ImpPlan.doc 10/02/03 4:56 PM Marine Resources n All funds awarded will be in the form of grants to the homeowners and loans to property owners providing rentals to qualified beneficiaries. n The process for selecting, accepting, reviewing and approving requests for �J assistance will be by advertisement in local newspapers of general circulation on at least four occasions. This process will provide a minimum sixty (60) day application period. Additional outreach activities shall include, press releases, announcements at public meetings and notification to the following: non-profit organizations, social service providers, local churches, daycare providers and organizations serving the elderly. Any subsequent application periods necessary shall meet the criteria outlined above. Properties to be addressed shall meet all of the following criteria: Priority # 1 • Single family unit • Owner occupied • Primary residence • Contain Housing Quality Standards or Health/Safety Violations or sewer connection requirements Priority #2 • Property owners • Single family unit or multifamily rental properties • Occupied by qualified beneficiaries has sewer connection requirements. Applications received within the application period(s) which meet the primary criteria above shall be prioritized based on the schedule outlined herein. Those household/projects receiving the greatest priority score shall be addressed until all available funding has been expended. Priorities Elderly (one owner greater than 62 yrs.) 10 Disabled household member 10 Documented Multiple Housing Quality Standard violations 10 Very low income 05 Children in household (greater than 2) 05 Length of Ownership (greater than 15 yrs.) 05 (0-5yrs = 0; 6-10yrs = 2; 11-15yrs = 3; 16yrs+ = 5) Single head of household (2 or more persons) 05 Note: In the event of tie scores, very low-income households will receive priority. BC0310101 Res SWMP LowlncFunding ImpPlan.doc 10/02/03 4:56 PM Marine Resources Conflicts of interest will be addressed pursuant to 24 C.F.R. Section 570.489 and Chapter 112.311-112.3143, F. S. by immediate identification of potential conflicts. Additionally, beneficiaries will be identified in minutes of the Monroe Board of County Commissioners (BOCC) and the CDBG Citizens Advisory Task Force meeting(s) so that any previously unknown conflicts may be surfaced. The conflicts will be acknowledged publicly along with the final selection of beneficiaries. It is the intent of the Monroe County Commission and the CDBG Citizens Advisory Task Force to deal with these conflicts if such conflicts occur on a local level and request waiver for acknowledgement of the conflicts when appropriate. Monroe County will also provide funding for sewer connections for property owners of single-family rental properties, occupied by eligible households. These will fall under the priority #2 category listed above. In the event of funds availability and completion of all applicants under priority #1, the County will provide funds for the sewer connection and on -site improvements for Priority #2 under the following process. n'v Assistance will be provided as a loan. Applicants will execute a note secured by a C ko. 5 mortgage on the subject property. The term of the note will be for three (3) years ­7 at zero (0) percent interest and requires no regular payments. The principal balance shall be forgiven by 1 3rd annually on the anniversary date. The mortgage shall contain affordability co .enants that require that during the term of the loan, the property shall be rented on an annual lease to very low- and low-income households subject to annual i come certification. BC0310101 Res SWMP LowlncFunding ImpPlan.doc 10/02/03 4:56 PM Marine Resources Attachment 3 Background for Implementation Plan BC0310101 Res SWMP LowIncFunding ImpPlan.doc 10/02/03 4:56 PM Marine Resources The County is using FEMA funding to assist in build wastewater systems throughout the county. FEMA has addressed assistance to Low- and Very Low - Income eligible residents through Executive Order (EO) 12898: Executive Order (EO) 12898 (Environmental Justice), entitled "Federal Action to Address Environmental Justice in Minority Populations," directs Federal agencies "to make achieving environmental justice part of its mission by identifying and addressing, as appropriate, disproportionately high and adverse human health or environmental effects of its programs, policies, and activities on minority populations and low-income populations in the United States..." To reduce costs to low-income and very low-income service recipients in compliance with EO 12898, financial assistance guidelines have been developed. Under this EO, FEMA has provided a minimum requirement to be met: Low-income property owners would receive assistance with at least 70% of their system capital cost; and 70% of their existing system abandonment and lateral costs, up to $3,000. Very low-income property owners would receive assistance with at least 90% of their system capital cost, and 90% of their existing system abandonment and lateral costs, up to $3,000. The assistance guidelines presented above represent a minimum goal and will be required during project implementation in order for the Monroe County/FKAA to receive FEMA grant funding. Costs to low-income service recipients may be further offset at the County's discretion. Further assistance could come from State grant funding made available from Community Development Block Grants, the State Housing Initiative Partnership Program, and/or a project contingency made available from existing State and Federal grant funding. Monroe County has identified recently awarded CDBG funds that are available to help low-income wastewater service recipients throughout the county. The 90% / 70% assistance program set forth is designed to address the needs of low-income and very low-income property owners. FEMA does not have specific requirements under EO 12898 to assist low-income renters. The County will provide such assistance to homeowners that rent to income eligible tenants. The County intends to provide the same level of service to this renting population. With the implementation of the FEMA assistance program and the use of FEMA grant funding and Monroe County funding, no highly disproportionate or adverse affects would be felt by low-income or very -low income BC0310101 Res SWMP LowlncFunding lmpPian.doc 10/02/03 4:56 PM Marine Resources The Monroe County Housing Authority currently uses the first two tiers of the U.S. Department of Housing and Urban Development's (HUD's) MFI-based income levels to administer its low-income assistance programs. To administer their programs fairly, HUD makes annual projections of MFI by county and adjusts for family size. The first two tiers of low- and very low-income levels are set as percentages of the county MFI. In 2003, the income limits for a family of three in Monroe County were $40,700 for the low-income level and $25,450 for the very low-income level. Table below shows HUD's FY 2003 poverty, very low -and low-income levels for various family sizes in Monroe County. Number of People In Household 1 2 3 4 5 Low -Income $315650 $36,150 $403700 45,200 $48,800 Very Low- $19,800 $2200 $25,450 $28,250 $30,500 Income Poverty $11,850 $131550 $15,250 $16,950 $18,300 The Community Development Program Administrator, Special Programs Office (SPO), Monroe County Housing Authority (MCHA) will be administrator of this program and implement the program. The Implementation Plan is administered according to the County's Housing Assistance Plan (HAP)(Amended), See pertinent information from the HAP at Attachment A. Whether funds are provided through the State / Federal CDBG grant process or provided by the County through other funding mechanisms and sources, the Implementation Plan will be administered as identified below, as a CDBG program with the same stipulations and application forms. The application process is based on the County HAP. An application with a cover letter explaining this CDBG program is mailed out and available at the SPO office. The application period is for 60-days. The SPO staff is available to assist in answering any questions regarding eligibility and completing the application. When the applications are received, they are reviewed for completeness. If additional information is needed, this is requested of the applicant. The application consists of. a cover letter; application instructions; application form for information on address, household composition, income level, and, status — owner- BC0310101 Res SWMP LowIncFunding ImpPlan.doc 10/02/03 4:56 PM Marine Resources occupied, primary residence or owner renting to eligible tenant; release form; resident income certification form; social security consent for release of information form; statement of no tax return form. A letter from the SPO staff to the applicant is provided to inform them that they have a complete application and that the have or have not met the CDBG application requirements. If they have not met the requirements, the reasons are stated in the letter, e.g., over the income limit or the property is not their primary residence. If they did meet the requirement, their letter will inform them to expect another letter as to the amount to be awarded and additional instructions. When the application period is closed, all outstanding information is requested of applicants, i.e., 1040 tax return for the previous year, applied for Homestead Exemption, and any other exigent circumstances. If required, the Citizens Advisory Task Force (CATF) will approve an extension of this application completion process to close out outstanding issues. Once all applicant issues are resolved, an order -of -merit listing is prepared for approval by the CATF and forwarded to the BOCC for conflict of interest resolution and approval. Based on the funding allocated, and the number of applicants on the list, a household dollar amount can be allotted to each applicant. When the funding for each household is known, the SPO staff sends a letter of commitment to the household and instructions on contracting a plumber to connect their home to the sewer system and their septic/cesspit abandonment. At this point the SPO staff works directly with the applicant to ensure timely payments are made to the plumbers and the contract requirements are being met, i.e., permits obtained, county inspections made, etc. Funding requests to DCA are made from a combination of the individual funding amount and the plumbing contractor costs. The owners, primary -residence receives the money as a grant. The owner renting to income eligible tenants, receive their funding in the form of a promissory note. Attachment A provides the promissory note process. The SPO staff will coordinate all of the payments through the County. Once all payments have been completed and the CDBG funds have been expended, the SPO staff can begin closing out this CDBG grant. Close out with DCA will take three (3) months. BC0310101 Res SWMP LowlncFunding ImpPlan.doc 10/02/03 4:56 PM