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Item L11 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY * ADD~ON* Meeting Date: Wed., November 16, 2005 Division: BOCC Bulk Item: Yes XX No Department: Commissioner David Rice, District 4 StatT Contact Person: Tamara Lundstrom AGENDA ITEM WORDING: Approval of Resolution authorizing the Mayor or County Administrator to certify the Florida Keys Housing and Land Trust, Inc. as a Community Housing Development Organization ("CHDOlf), making it eligible to receive certain federal and state funding. This certification is required pursuant to Florida Housing Finance Corporation RFP 2005-04, dated October 21, which sets aside $4M out ofthe $lOM RFP funds for qualifying CHDO/CL Ts in the Florida Keys. RFP Response deadline is December 16,2005. ITEM BACKGROUND: PREVIOUS RELEVANT BOCC ACTION: CONTRACT/AGREEMENT CHANGES: ST AFF RECOMMENDATIONS: TOTAL COST: BUDGETED: Y cs No COST TO COUNTY: SOURCE OF FUNDS: REVENUE PRODUCING: Yes No AMOUNT PER MONTH_ Year APPROVED BY: County Atty _ OMB/Purchasing _ Risk Management_ DIVISION DIRECTOR APPROVAL: 1>cwid ff. ~ (David P. Rice, Commissioner) DOCUMENT A TION: Included Not Required _ DISPOSITION: AGENDA ITEM # Revised 2/05 lU:SOLUTION NO. -2005 A RESOLUTION OF THE MONROE BOARD OF COUNTY COMMISSIONERS CERTlFYING THE FLORIDA KEYS COMMUNITY HOUSING AND LAND TRUST, INC. AS A COM~MUNITY HOUSING DEVELOPMENT ORGANIZA TION (CHDO) WHEREAS, the Board of County Commissioners (the "Board") has recently empanelIed an Affordable Housing Task Force made up of members from throughout the Florida Keys to address critical housing affordability issues facing the Florida Keys; and WHEREAS, the Board at its August 17, 2005 meeting authorized and directed creation of a Community Land Tmst for the purposes of securing certain State funds for use in addressing affordable housing needs; and WHEREAS, the Florida Housing Finance Corporation issued RFP 2005-04 on October 21, 2005, with a deadline response date of December 16,2005; and WHEREAS, the RFP provides a $4 million dollar set-aside for Florida Keys CL Ts who otherwise qualify for funds under the terms of the RFP; and WHEREAS, whereas the Florida Keys Community Housing and Land Trust, Inc. was created on June 2, 2004, has already qualified under Section 501(c)(3) of the Internal Revenue Code as a tax-exempt organization, a prerequisite for RFP applicants; and WHEREAS, counsel for the Monroe County Affordable Housing Task Force has been tasked to conform the existing CLT to meet the needs of the County and the RFP and the Board of the CL T has agreed to same; and WHEREAS, certification that the CL T is qualified to be Community Housing Development Organization eligible to receive certain federal funds and the funding available under the RFP is required to meet the December 16 RFP deadline; now therefore, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA that: Section 1: It is resolved by the BOCC that this Commission hereby designates the Florida Keys Community Housing and Land Trust, Inc., as a Community Housing Development Organization, as that term is used in 24 CFR 92.2 and related regulations, certifying the organization's commitment to and compliance with applicable regulations regarding CHDO's and directing that any necessary instruments required for the RFP submission be executed by the Mayor or the County Administrator in order that the RFP Response deadline be met. Counsel for the Affordable Housing Task Force will coordinate with the Office of County Attorney as required in this regard. PASSED AND ADOPTED by the board of County Commissioners of Monroe County, Florida at a regular meeting of said Board held on the 16th day of November, 2005. Mayor Spehar Mayor Pro Tern McCoy Commissioner Nelson Commissioner Neugent Commissioner Rice BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA Mayor DIXIE M. SPEHAR A TTEST: Danny L. Kohlage, Clerk Deputy Clerk Approved as to form: County Attorney 2 RESOLUTION NO. -2005 A RESOLUTION OF THE MONROE BOARD OF COUNTY COMMISSIONERS CERTIFYING THE FLORIDA KEYS COMMUNITY HOUSING AND LAND TRUST, INe. AS A COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO) WHEREAS, the Board of County Commissioners (the "Board") has recently empanelled an Affordable Housing Task Force made up of members from throughout the Florida Keys to address critical housing affordability issues facing the Florida Keys; and WHEREAS, the Board at its August 17,2005 meeting authorized and directed creation of a Community Land Trust for the purposes of securing certain State funds for use in addressing affordable housing needs; and WHEREAS, the Florida Housing Finance Corporation issued RFP 2005-04 on October 21,2005, with a deadline response date of December 16, 2005; and WHEREAS, the RFP provides a $4 million dollar set-aside for Florida Keys CLTs who otherwise qualify for funds under the terms ofthe RFP; and WHEREAS, whereas the Florida Keys Community Housing and Land Trust, Inc. was created on June 2,2004, has already qualified under Section 501(c)(3) ofthe Internal Revenue Code as a tax-exempt organization, a prerequisite for RFP applicants; and WHEREAS, counsel for the Monroe County Affordable Housing Task Force has been tasked to conform the existing CL T to meet the needs of the County and the RFP and the Board of the CL T has. agreed to same; and WHEREAS, certification that the CL T is qualified to be Community Housing Development Organization eligible to receive certain federal funds and the funding available under the RFP is required to meet the December 16 RFP deadline; now therefore, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA that: Section 1: It is resolved by the BOCC that this Commission hereby designates the Florida Keys Community Housing and Land Trust, Inc., as a Community Housing Development Organization, as that term is used in 24 CFR 92.2 and related regulations, certifying the organization's commitment to and compliance with applicable regulations regarding CHDO' s and directing that any necessary instruments required for the RFP submission be executed by the Mayor or the County Administrator in order that the RFP Response deadline be met. Counsel for the Affordable Housing Task Force will coordinate with the Office of County Attorney as required in this regard. l.11 PASSED AND ADOPTED by the board of County Commissioners of Monroe County, Florida at a regular meeting of said Board held on the 16th day of November, 2005. Mayor Spehar Mayor Pro Tern McCoy Commissioner Nelson Commissioner Neugent Commissioner Rice BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA Mayor DIXIE M. SPEHAR ATTEST: Danny L. Kohlage, Clerk Deputy Clerk Approved as to form: County Attorney 2 Jerry Coleman, Esq. John C. Rockwell, Esq. (FL only) Email: i!<m9.Q.l!<m!IDp.l@~ll~!mJ:h.gl;lJ if.Q~l\w~.ll~_~_q@Q.!<Ul',Q!!tb.:,n!<! JERRY COLEMAN, P.L. 201 Front Street, Suite 203 Key West, Florida 33040 (Admitted Florida and New York) Truman Annex Building 21 Second Floor Tel; 305-292-3095 Fax: 305-296-6200 MEMORANDUM TO: Commissioner David Rice FROM: Jerry Coleman, Counsel to County Affordable Housing Task Force SUBJECT: RFP 2005-04 Florida Keys Community Housing and Land Trust, Inc. ("Applicant") As you know, I have been charged with setting up a Community Land Trust (CLT) to serve County purposes, including taking advantage of certain state funding. Suzanne Hutton of the County Attorney's office has been working with me on this, and there are some challenges to the nuances of our charge that I need and will not go into here, saving these for another day. As we discussed today, a State RFP for CLT funding (the expectation of which was a major impetus for the Commission's August 17 directions to create a land trust) came out on October 21,2005 (a copy is attached in PDF format). Of course, as we all know, the Keys were shut down that Friday in anticipation of Wilma, and the storm then hit, unfortunately delaying our response. Anyway, we are moving ahead with responding to the RFP, including making changes to an existing CL T (Florida Keys Community Housing and Land Trust, Inc.) to fit the RFP requirements. The RFP deadline is December 16 and we need the County to designate our land trust (which was actually formed a year and a half ago in cooperation with Habitat for Humanity of Key West & Lower Florida Keys for much the purposes we are now using it for) as a Community Housing Development Organization ("CHDO"). To meet the RFP requirements the County as the "participating jurisdiction" must certifY the CHDO with respect to the substantive requirements set out below. Because of the Commission's meeting schedule, the RFP deadline and Wilma problems we needed this add-on at this late hour, for which I apologize to the Commission, and to you. Even with the CHDO certification, before responding to the RFP my office will coordinate with the County Attorney's office to make sure we are comfortable with the rush product. The CL T will not respond to the RFP over any objection from County staff, though I anticipate none. For your backgrounding, the following highlights are the more substantive elements of what qualifies an organization to be a CHDO. The complete statutory checklist for a CHDO is found in 24 CFR Part 92.2 which includes matters such as financial accounting requirements (which CFR provisions I have included as separate attachments in the email by which this memorandum is being transmitted- and which CFR accounting provisions I have reviewed and with which see no big difficulties), rules governing for-profit sponsored organizations, and CHDOs chartered by state or local government: . A CHDO must be a nonprofit organization, either 50 1 (c)(3), or (4). No part of its earnings may inure to the benefit of any member, founder, contributor, or individual. The CHDO may also be a subordinate organization of a central organization nonprofit under section 905 of the Internal Revenue Code. If the CHDO is sponsored or created by a for- profit entity, the for-profit entity may not appoint more than one-third of the membership of the CHDO's governing body, and the board members appointed by the for-profit entity may not, in turn, appoint the remaining two-thirds of the board members. . It must have among its purposes the provision of decent housing that is affordable to low- and moderate-income people. This statement of purpose may be evidenced in the organization's charter, articles of incorporation, by-laws, or board resolutions. . The organization must have a demonstrated capacity for carrying out activities assisted with HOME funds. An organization may satisfy this requirement by having an experienced staff or by contracting with an experienced consultant with a plan for that consultant to train key staff members in the undertakings contemplated in the HOME project. . The organization must have a history of serving the community where housing to be assisted with HOME funds will be used. This can be satisfied by a statement that documents at least one year of experience in serving the community, or for a newly created organization formed by local churches, service or community organizations, a statement that documents that its parent organization has at least one year of experience in serving the community. This service can be such things as developing new housing, rehabilitating housing, managing housing, or delivering nonhousing services to the community such as counseling, food services, or child care facilities. . The organization must maintain at least one-third of its governing board's membership for residents of low-income neighborhoods, Other low-income community residents, or elected representatives of low-income neighborhood organizations. Under the HOME program. for urban areas, the term "conununity" is defined as one or several neighborhoods, a city, county, or metropolitan area. For rural areas, "community" is defined as one or several neighborhoods, a town, Village, county, or multi-county area (but not the whole state). . The organization must provide a formal process for low-income program beneficiaries to advise the organization in all of its decisions regarding the design, siting, development, and management of all HOME assisted affordable housing projects. This provision for accountability to the low- income community, entails, at a minimum, a written procedure adopted by the board for obtaining input from the community regarding the delivery of housing whenever HOME funds are used. Attachments - CFR accounting provisions; RFP 2005-04