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HomeMy WebLinkAboutItem R01 COUNTY of MONROE BOARD OF COUNTY COMMISSIONERS Mayor Michelle Lincoln,District 2 The Florida Keys Mayor Pro Tem David Rice,District 4 y Craig Cates,District 1 James K. Scholl,District 3 �f « Holly Merrill Raschein,District 5 Regular Meeting July 15, 2026 Agenda Item Number: RI 26-19711 BULK ITEM: No DEPARTMENT: Resilience Office TIME APPROXIMATE: TBD STAFF CONTACT: Rhonda Haag (305) 453-8774 AGENDA ITEM WORDING: Approval of a Resolution setting forth the requirements for the Financial Hardship Deferral program under the proposed Municipal Service Benefit Unit MSBU Residential Neighborhood Improvement Program and establishing a Financial Hardship Deferral Program for an identified and created Municipal Services Benefit Unit MSBU Capital Infrastructure Project under the proposed Residential Neighborhood Improvements Program for proposed modifications to Chapter 22, Article VII of the Monroe County Code. ITEM BACKGROUND: The County has developed a Financial Hardship Deferral Program to provide financial assistance for those real property owners in a specific project benefit area in the unincorporated County or certain municipal areas whose real property is sub j ect to special assessments imposed under the provisions of the proposed Residential Neighborhood Improvements Program MSBU Ordinance and who: a) live at or below the LOW-INCOME level (i.e., at or below 80% of median income level) in Monroe County and b) whose financial assets meet the specified financial requirements outlined in the Resolution. This Financial Hardship Deferral Program would be part of the proposed Residential Neighborhood Improvements Program under consideration, which would authorize the establishment of assessments to fund project costs to reimburse the County for all expended funds related to a project and fund long- term operations and maintenance costs. Special assessments against property benefited by the project shall be assessed upon the property in proportion to the special benefits to be determined and allocated according to the methodology to be adopted by the County. An interested resident shall complete an application to determine if the resident qualifies for the financial hardship deferral and must provide the required documentation to assist the County in determining qualification for participation in the program. The County shall pay the annual assessment due for any property that qualifies under the Financial Hardship Deferral Program (if funds are available) and be reimbursed upon the sale of the property. Rules of the Financial Hardship Deferral Program: 1) The deferred non-ad valorem Capital and/or Operations and Maintenance Assessments and interest are a priority lien on the homestead. They are handled and collected in the same manner as property tax liens. 2) The accrued assessment(s) shall increase each year by the amount of the assessment due annually to the County, plus interest. 3) Participation in the Program is limited to property owners in the defined benefit area and those whose property is a Homesteaded Property. Non-Homesteaded properties do not qualify for participation in the Financial Hardship Deferral Program. 4) The Monroe County Board of County Commissioners, in its sole discretion, shall determine on an annual basis whether to fund the Financial Hardship Deferral Program and to make the program available to County residents who financially qualify for the deferral program and are at risk of losing title to their homes because of the imposition of a Special Assessment. The provision of hardship assistance in any one year shall in no way establish a right or entitlement to such assistance in any subsequent year and the provision of funds in any year may be limited to the extent funds are available and appropriated by the Monroe County Board of County Commissioners. If the County ceases the funding the program for any given year or number of years, the property owners enrolled in the program shall be required to begin paying the Annual Assessment but shall not be required to pay to the County the amount in deferral until the sale of the property. 5) Income verification shall be required. The Monroe County Annual Qualifying Income Limits for Affordable Housing shall be used to determine eligibility for the Financial Hardship Deferral Program. The qualifying annual income limits for the Financial Hardship Deferral Program shall be LOW-INCOME—at or below 80% of median income. 6) Minimum assessment levels shall apply.Property owners shall have an annual combined assessment amount greater than $1,500/year to participate in the Financial Hardship Deferral Program. 7) Maximum financial assets shall apply. Property owners shall have a maximum of $60,000 in available cash assets in order to participate in the deferral program. 8) Repeat verification of income and assets shall apply. The County may verify the income and assets of the property owner upon initial application into the deferral program. The County shall conduct additional verification checks every five years. If the Resident is removed from the program in the future due to non-qualification, the deferred amount shall remain in the program until the sale or transfer of the property, and the property owner shall begin paying the annual assessment. PREVIOUS RELEVANT BOCC ACTION: 12/09/2020: A public hearing to consider approval of a resolution of Monroe County, Florida electing to use the uniform method of collecting non-ad valorem special assessments levied within the County toward the cost of providing capital costs and operations and maintenance costs for roadway improvements related to sea level rise located within Monroe County. 01/20/2021: Approval to advertise a public hearing, to consider adoption of a proposed ordinance amending Chapter 22 of the Monroe County Code, creating Article VII establishing a Municipal Service Benefit Unit(MSBU)for the collection of special non-ad valorem special assessments for road elevation and improvement projects to be constructed to address sea level rise and establish a flood mitigation program and authorizing the creation of assessment areas in the future. The public hearing was scheduled to be held on February 17, 2021, in Key West, FL at 1:3 0 p.m. or as soon thereafter as the item may be heard. 02/17/21: A public hearing to consider adoption of a proposed ordinance amending Chapter 22 of the Monroe County Code, creating Article VII establishing a Municipal Service Benefit Unit (MSBU) for the collection of special non-ad valorem special assessments for road elevation and improvement projects to be constructed to address sea level rise and establish a flood mitigation program, and authorizing the creation of assessment areas in the future. The public hearing was held on February 17, 2021, in Key West, FL at 1:30 p.m. or as soon thereafter as the item could be heard. 11/12/25: Discussion and direction on proposed modifications to Chapter 22 of the Monroe County Code, Article VII, that will allow neighborhoods to request improvements beyond the County's basic levels of service and to have the neighborhoods fund such improvements through as assessment program; and to approve the advertisement of a public hearing to consider adoption of the proposed ordinance revisions amending Chapter 22 of the Monroe County Code, modifying Article VII that established a Municipal Service Benefit Unit (MSBU) for the collection of special non-ad valorem special assessments for projects. The public hearing was scheduled to be held in January 2026 in Marathon, Florida at a time and date to be determined at the meeting. 12/10/25: Discussion and direction on a residential neighborhood improvements program for proposed modifications to Chapter 22 of the Monroe County Code, Article VII, that would allow neighborhoods to request improvements beyond the County's basic levels of service and to have the neighborhoods fund such improvements through an assessment program. The public hearing to consider adoption of the proposed ordinance revisions amending Chapter 22 of the Monroe County Code, modifying Article VII that established a Municipal Service Benefit Unit (MSBU) for the collection of special non-ad valorem special assessments for projects was scheduled to be held January 28, 2026, in Marathon, Florida. 12/10/25: Discussion and direction on establishing a Financial Hardship Deferral Program for an identified and created Municipal Services Benefit Unit Capital Infrastructure Project under the proposed Residential Neighborhood Improvements Program for proposed modifications to Chapter 22 of the Monroe County Code, Article VII. 03/11/26: Discussion and direction on establishing a Financial Hardship Deferral Program for an identified and created Municipal Services Benefit Unit Capital Infrastructure Project under the proposed Residential Neighborhood Improvements Program for proposed modifications to Chapter 22 of the Monroe County Code, Article VI. PROPOSED July 15, 2026: Approval of an Ordinance by the Monroe County Board of County Commissioners amending Chapter 22, Article VII of the Monroe County Code by expanding the type of projects included under a Residential Neighborhood Improvements Program, allowing residents to request and fund improvements in their neighborhood and providing for an effective date. INSURANCE REQUIRED: No CONTRACT/AGREEMENT CHANGES: Not Applicable STAFF RECOMMENDATION: Approval DOCUMENTATION: BOCC Resolution Financial Hardship Deferral Program for Residential Neighborhood Improvements Program.. FINANCIAL IMPACT: Effective Date: July 15, 2026 Expiration Date: Not Applicable Total Dollar Value of Contract: Not Applicable Total Cost to County: To be determined by the number a of enrollees in the program, but County will ultimately be repaid the investment upon transfer of the property. Current Year Portion: None Budgeted: No Source of Funds: TBD CPI: N/A Indirect Costs: Estimated Ongoing Costs Not Included in above dollar amounts: The County shall pay the annual assessments of those enrolled in the deferral program, to be ultimately reimbursed upon sale of the property. Revenue Producing: No If yes, amount: Grant: No County Match: N/A Insurance Required: No 1. Approval of a Resolutionsettimy forth the requirements forte Financial HardshipDeferral program er the proposed Municipal Service Benefit Unit MSBU Residential Neighborhoodrove ent Program establishing a Fi ancial Hardship Deferral Program for an identified created Municipal Services Benefit Unit MSBU Capitalst ct re Project under the proposedResidential Neighborhood Improvementsfor proposed modifications to Chapter 22 of the Monroet e,Article VI. RESOLUTION NO. -2026 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA, SETTING FORTH THE REQUIREMENTS FOR THE FINANCIAL HARDSHIP DEFERRAL PROGRAM UNDER THE MUNICIPAL SERVICE BENEFIT UNIT RESIDENTIAL NEIGHBORHOOD IMPROVEMENT PROGRAM WHEREAS, the County is providing a Financial Hardship Deferral Program (Program") for deferral of non-ad valorem assessments for property owners who meet the special requirements as set out herein for the annual deferral of capital and/or operations and maintenance assessments for property owners in a defined benefit area of a neighborhood improvement project; and WHEREAS, the County/Board of County Commissioners (BOCC) is also in the process of adopting a Residential Neighborhood Improvements Ordinance (Proposed Ordinance) that will allow neighborhood groups to initiate and fund improvement projects, as approved by a majority (50% plus 1) of property owners in their respective neighborhoods, through the creation of a Municipal Service Benefit Unit (MSBU) and the collection of Special Assessments to fund projects that are beyond the core services provided by the County; and WHEREAS, If the neighborhood improvement project is approved by the BOCC, under the MSBU Ordinance the County shall advance the funds to conduct the work and be repaid through the assessment(s) plus administrative costs collected in the particular MSBU; and WHEREAS, it is necessary to specify and document the requirements of the Financial Hardship Deferral Program to provide guidance for those property owners who desire to participate in the program and to establish guidelines for the County staff to review and make a determination of eligibility for the deferral. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Monroe County, Florida, that the following specifications are part of the Financial Hardship Deferral Program provided by the County subject to annual appropriations by the Monroe County Board of County Commissioners: 1. The foregoing recitals are true and correct and are incorporated by reference, herein. Financial Hardship Deferral Program for MSBU's July 15,2026 2. Real Property Owners whose real property is subject to special assessments imposed under the provisions of the Proposed Ordinance and who meet specified low-income financial and asset requirements in a specific project benefit area in unincorporated Monroe County may be eligible for Financial Assistance in the form of non-ad valorem assessment deferral, as provided below: A. Deferral of Capital and Operations and Maintenance (Service) Assessments. 1) Service Assessments—Operations and Maintenance ("O&M") a) Service Assessments are collected by the County for the Operations and Maintenance ("O&M") services provided by the County for that specific project. Property owners who have been designated as part of the "benefit area" benefit from the project for which the Service Assessments are collected. b) Applicants in the benefit area who qualify for the Financial Hardship Deferral will have their Annual O&M Assessment deferred and accrued until the sale of the property, at which time the full accrued O&M assessment will be paid to the County. Service Assessment deferrals do NOT transfer to new owners. c) New owners must apply and qualify for a new hardship deferral. However, regardless of whether they qualify, the accumulated deferral amount of the service O&M accrual from the previous property owner must be paid upon sale or transfer of the property. 2) Capital Assessments. a) Capital Assessments are collected by the County for the capital cost of the project. Property owners who have been designated as part of the "benefit area" benefit from the project for which the Capital Assessments are collected. b) Capital Assessments are long-term benefits and are designed to fund a project which benefits the property owner by improving the value of the parcel for the current owners and for any future owners of the property. c) Applicants in the benefit area who qualify for the Financial Hardship Deferral will have their annual capital assessment deferred and accrued until the sale of the property, at which time the full accrued assessment will be paid to the County. Capital Assessment deferrals do NOT transfer to new owners. Financial Hardship Deferral Program for MSBU's July 15,2026 The new property owners must pay the remainder of what is owed for the capital improvements upon purchase of the property. d) The County will file a lien on the property for the Capital Assessment for the established term of their collection. The County will process and manage the liens. B. Rules. 1). The deferred non-ad valorem assessment for the Capital and the Operations and Maintenance improvements and interest thereon are a priority lien on the homestead. They are handled and collected in the same manner as property tax liens. 2) The accrued assessment(s) shall increase each year by the amount of the assessment due annually to the County, plus interest. Interest shall be charged annually at the rate to be determined by the County and provided at the time of application. 3) Participation in the Program is limited to property owners in the defined benefit area and those whose property is a Homesteaded Property. Non-Homesteaded properties do not qualify for participation in the Financial Hardship Deferral Program. 4) The Monroe County Board of County Commissioners, in its sole discretion, shall determine on an annual basis whether to fund the Financial Hardship Deferral Program and to make the program available to County residents who financially qualify for the deferral program and are at risk of losing title to their homes as a result of the imposition of a Special Assessment. The provision of hardship assistance in any one year shall in no way establish a right or entitlement to such assistance in any subsequent year and the provision of funds in any year may be limited to the extent funds are available and appropriated by the Monroe County Board of County Commissioners. If the County ceases the funding the program for any given year or number of years, the property owners enrolled in the program shall be required to begin paying the Annual Assessment but shall not be required to pay to the County the amount in deferral until the sale of the property. 5) Income verification shall be required. The Monroe County Annual Qualifying Income Limits for Affordable Housing shall be used to determine eligibility for the Financial Hardship Deferral Program. The maximum annual income the household can earn and still be eligible for the hardship deferral program shall be the LOW- Financial Hardship Deferral Program for MSBU's July 15,2026 INCOME threshold— which is no greater than 80% of median income. 6) Minimum assessment levels shall apply in order to participate in the Deferral Program. Property owners shall be required to have an annual combined assessment amount greater than $1,500/year in order to participate in the Financial Hardship Deferral Program. 7) Maximum financial assets shall apply in order to participate in the deferral program. A household's total assets must be valued at $60,000 or less in order to participate. This amount shall increase each year by Consumer Price Index to account for inflation. 8) Repeat verification of income and assets shall apply. The County shall verify the income and assets of the property owner upon initial application into the deferral program. The County may conduct additional verification checks in the future, at its option. If the Resident is removed from the program in the future due to non- qualification, the deferred amount shall remain in the program until the sale or transfer of the property unless the Resident desires to pay it back at the time of removal from the program. If the Resident does not qualify in any given year, he/she will pay the assessment amount for any year in which they fail to qualify. C. Responsibilities of Residents. 1) An interested Resident shall approach the County for potential participation in the deferral Program. 2) The resident shall complete an application to determine if the resident qualifies for a financial hardship deferral, and provide the required documentation to assist the County in determining their qualification for participation in the program 3) If the property owner qualifies, the County, at its option, will fund the assessment due on that property for one year and each year thereafter as long as the property owner continues to qualify under the terms of this resolution and funds are available. If the property owner does not qualify, the owner shall pay the assessment(s) due annually, including any Capital Assessment and/or Operations & Maintenance Assessment. Financial Hardship Deferral Program for MSBU's July 15,2026 D. Responsibilities of the County. 1) The County shall review the Property Owner's application and determine if the property owner qualifies to participate in the Financial Hardship Deferral Program. The County may conduct additional income and financial verification in the future at its option. 2) Assessments shall be initiated by the County to fund project costs. 3) The County shall advance the costs for the project and conduct the project work, to be fully reimbursed through the Assessment(s). 4) The County shall pay the annual assessment due for any property owner that qualifies under the Financial Hardship Deferral Program. 5) The County shall notify property owners receiving assistance under the Financial Hardship Deferral Program if the program is not funded for any year and give the property owner 180 days to pay the assessment. 6) The County shall collect the full assessment due upon the sale or transfer of the property. PASSED AND ADOPTED by the Board of County Commissioners of Monroe County, Florida at a regular meeting of said board on the 15th day of July 2026. Mayor Michelle Lincoln Mayor Pro Tem David Rice Commissioner Craig Cates Commissioner James K. Scholl Commissioner Holly Merrill Raschein (SEAL) BOARD OF COUNTY COMMISSIONERS Attest: KEVIN MADOK, Clerk OF MONROE COUNTY, FLORIDA By By As Deputy Clerk Mayor/Chairperson iONROE C U NTY ATTOMNEYS OFFICE APPROVED A!S TO FORM .... Financial Hardship Deferral Program for MSBU's July 15,2026