Developer Incentives and Applications | Collier County Affordable Housing

Affordable Housing Construction Assistance

New Construction Assistance

SHIP funds may be provided to organizations to be used for the land acquisition, infrastructure and development costs, and all associated fees and permits, for single-family housing for resale to eligible homebuyers in incorporated or unincorporated Collier County. The units may be constructed on infill lots or as a part of a larger development.

Income Categories to be Served: Extremely low, Very low, Low and Moderate

Maximum Award: $50,000 per housing unit

Single-family Housing	Rental Housing
Owner occupied rehabilitation – SHIP funds will be awarded to households in need of repairs to correct code violations, health and safety issues, electrical, plumbing, roofing, windows, other structural items and relocation. Assistance may include costs related to all eligible repairs, inspections, work write ups, recording fees and project delivery fees. For terms, qualifications and other details, see page 8 of the SHIP LHAP plan.	Rental development – Funds will be awarded to developers of affordable rental units for construction financing through other state or federal housing programs to construct affordable rental units in incorporated or unincorporated Collier County. This funding is intended to be used as gap financing required for the project. In cases where a smaller development (less than 50 units) is being proposed that included Special Needs units, the County may choose to provide a larger amount of the overall construction financing. For terms, qualifications and other details, see page 14 of the SHIP LHAP plan.
Purchase assistance – SHIP funds will be awarded to first-time homebuyers for down payment and closing costs to purchase a newly constructed or an existing single-family home, manufactured home or condominium. For terms, qualifications and other details, see page 10 of the SHIP LHAP plan.	Rental rehabilitation – The program is designed to rehabilitation rental units in Collier County. Loans will be giving to non-profit/for profit housing landlords/owners who have site control and ownership of the properties to rehabilitate existing singe family, multi-family or mobile/manufactured rental units on scattered sites or a rental complex. Assistance may be provided for large projects involving the repair of multiple rental units. For terms, qualifications and other details, see page 16 of the SHIP LHAP plan.
Demolition and Replacement of Site Built or Manufactured Homes – SHIP funds will be awarded to homeowners in need of demolition and replacement of housing. The county may use SHIP funds for demolition and replacement of site built or manufactured housing. This strategy will be used in lieu of rehabilitation when cost to repair the home are determined be more than 50% of the home’s value, as determined by the county. For terms, qualifications and other details see page 22 of the SHIP LHAP plan.	Rental acquisition – The program is designed to acquire rental units within Collier County. For terms, qualifications and other details, see page 18 of the SHIP LHAP plan.

Affordable Housing Density Bonus Program

Currently, Collier County’s residential density in the urban area is generally limited to four units per acre. However, developers willing to produce units at affordable levels can increase their density to as high as 16 units per acre through the density bonus program, should they meet certain requirements.

For more information, please contact the Collier County Community and Human Services Division at 239-252-CARE (2273) or housinginfo@colliercountyfl.gov. Also, see Collier County Land Development Code Section 2.06 for details.

Affordable Housing Development Site Acquisition

SHIP funds may be provided to organizations to be used for the land acquisition, infrastructure and development costs, and all associated fees and permits, for single-family housing for resale to eligible home buyers in incorporated or unincorporated Collier County. The units may be constructed on infill lots or as a part of a larger development. For more information, see page 19 of the SHIP Local Housing Assistance Plan.

Developers interested in applying for Local Government Area of Opportunity Funding

COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS

NOTICE OF FUND AVAILABILITY &

REQUEST FOR APPLICATIONS

LOCAL GOVERNMENT SUPPORT LOANS

FOR DEVELOPMENTS APPLYING FOR FHFC HOUSING CREDITS

SEEKING THE LOCAL GOVERNMENT AREA OF OPPORTUNITY FUNDING

Loans Made in Conjunction with FHFC RFA 2023-201

Application Opens: July 19, 2023

Applications Due: 12:00PM August 11, 2023

The Collier County Board of County Commissioners (the “County”) announces the availability of funds and is requesting applications for the consideration of providing local government support for qualified multifamily housing developments which meet the goals of the County and comply with applicable federal and state law. The County has adopted the following guidelines to set forth the general requirements and procedures that apply to the financing of multifamily housing developments. The County may waive specific provisions of these guidelines where good cause is shown and adequate supporting documentation is provided. Any waiver is at the sole discretion of the County. In addition, these guidelines may be amended, revised, repealed or otherwise altered by the County with or without notice. The County specifically welcomes requests for proposed alternative resident programs or development/unit features.

All applications submitted will be reviewed by the County’s Affordable Housing Advisory Committee, who will make recommendations to the County Manager. The County Manager will then decide whether or not to support commitment letters and loans providing Local Government Support for developments applying for FHFC funding and who are seeking the Local Government Area of Opportunity Funding, pursuant to Resolution No. 2019-207. Submission of an application does not entitle the Applicant to financing, even if sufficient funds remain.

The County will not consider issuing commitment letters to provide financing for any development unless the applicant has satisfied the general requirements set forth in these guidelines, submits a timely, complete, and acceptable application and complies with all of the procedures and requirements contained within the County’s application procedures and program guidelines.

The County reserves the right to impose additional requirements on any particular development. Compliance with these guidelines does not and shall not create any right by an applicant to a commitment or assurance that the County will provide the requested financing.

The County provides local government support to assist in the construction, rehabilitation and permanent financing of multifamily housing developments. The County anticipates sufficient funds to be available to fund one applicant.

The maximum amount of the Local Government Support loans that may be applied for pursuant to this Notice of Fund Availability (NOFA) is the amount that will allow local projects to score the maximum points or preference for the Local Government Area of Opportunity Funding.

THE COUNTY RESERVES THE RIGHT, AT ITS SOLE DISCRETION, TO NOT FUND ANY APPLICANT AT A LEVEL REQUIRED FOR THE LOCAL GOVERNMENT AREA OF OPPORTUNITY FUNDING. THE COUNTY ALSO RESERVES THE RIGHT TO MODIFY THIS NOFA PRIOR TO THE APPLICATION DEADLINE BASED UPON CHANGES TO FHFC RFA 2023-201 OR DECISIONS MADE BY THE COUNTY.

All applications received will compete with each other and be selected by the County for the available funding. Applications will be reviewed against the criteria listed below and, if selected, each loan will be subject to the minimum loan terms stated below.

NO CONTACT WITH BOARD OF COUNTY COMMISSIONERS AND/OR AFFORDABLE HOUSING ADVISORY COMMITTEE (AHAC) MEMBERS AFTER THE DATE THE NOFA IS ISSUED UNTIL THE AHAC MAKES ITS RECOMMENDATION TO THE COUNTY MANAGER. During this period, no Applicant, Applicant Agent and/or Representative may contact members of the Collier County Board of County Commissioners and/or AHAC members concerning their application, any other applicant’s application, the merits of their firm, or any other aspect of the application and selection process. Violation of this prohibition will result in the disqualification of the Applicant and all of their developments.

Applications related to FHFC RFA 2023-201 are due no later than 12:00 PM, Eastern Daylight Time, AUGUST 11, 2023. For more information, contact Kristi Sonntag, Director, Community and Human Services Division.

SUBMISSIONS:

An original and one (1) hard copy of the entire application, and a PDF of the application to:

Collier County Government

c/o Community and Human Services Division

Kristi Sonntag, Director

3339 East Tamiami Trail, Building H., Suite 213

Naples, FL 34112

PDF MUST BE AT RESOLUTION LEVEL THAT PERMITS EMAILING

APPLICATION GUIDELINES

1. PROJECT THRESHOLD CRITERIA

Project must be located within Collier County, including both unincorporated County and within any municipality;
Applicant must provide evidence of site control;
Applicant must provide a set-aside of rental units equal to or greater than the standards for low-income Housing Tax Credits or applicable FHFC Program, as the case may be;
Project must have evidence authorizing the use of the property for the proposed use; and,
Applicant must commit to an affordability period of 99 years ;

2. PROJECT SELECTION CRITERIA

Applicant’s development and construction experience; 10 pts
Experience and Quality of development team, 5 pts
Applicant’s management experience, or experience and quality of management company; 5 pts
Financial feasibility to complete and operate the project (including, but not limited to, cost estimates, cash flows, debt service coverage ratios, the percentage of public monies requested compared to project cost; leveraging of public resources, including the requested County loan); 5 pts
Applicant’s performance and/or compliance (including any prior defaults) of any prior loans or contracts with Collier County; 15 pts
The reasonableness of the cost of the development; 5pts
Resident Programs; 5 pts
Unit and Development Amenities; 5 pts
Energy Efficiency; 5 pts
Commitment to set-aside at least 10% of the units in the development to an at-risk population (Homeless, Seniors, Special Needs, Etc.); 7 pts
Maximum Economic Impact; 3 pts
Developments which provide a lift to the neighborhood, and could lead to additional revitalization and/or neighborhood improvement; 10 pts
Proximity to public transportation, services, and employment; 5 pts
Leveraging of County funds with other resources that could be used to meet the FHFC required contribution level, and leveraging of County funds with other funds to achieve greater impact on the community/neighborhood; 7 pts
Ability to meet FHFC requirements for the contribution to be a part of permanent financing with minimum loan term; 3pts

3. LOAN TERMS:

To be finalized at time of loan commitment. The following will apply to all County loans:

The following loan terms shall apply: (a) Interest rate of 1%; (b) the maximum term of the loan to be coterminous with the first mortgage, but not to exceed 30 years (and the minimum term necessary to meet FHFC requirements); and, (c) loan to be fully amortizing over a 30 year period, with a balloon payment due when the first mortgage is paid off or refinanced. The loan documents shall provide for the standard default provisions; and upon default, the loan shall accrue interest at the highest rate then permissible under Florida law from and after an event of default that remains uncured.
Each loan shall be evidenced by a promissory note in the full-face amount of the Local Government Support and secured in its entirety by a subordinate lien mortgage, and shall include such other standard loan documents as necessary to evidence and complete the transaction.
The loan shall not be disbursed until the following minimum due diligence is received and satisfactory (however, additional requirements may be necessary for the project): mortgagee title insurance policy (or a marked-down commitment for the same), boundary survey certified to the County, environmental site assessments certified to the County, and evidence of concurrency and all permits authorizing construction of the project.
The loan shall be issued in the name of the County. Such loan shall be reviewed, implemented, and administered by the County.

NOTE: APPLICANT MAY PROPOSE HIGHER INTEREST RATE AND/OR SHORTER AMORTIZATION PERIOD

The loan amount for Applicants seeking a Local Government Area of Opportunity Funding loan will depend upon requirements detailed within FHFC RFA 2023-201. The following amount is subject to change. Currently, the requirement is anticipated to be $460,000. At the present, it is anticipated that HOME or SHIP funds will be used by the County.

FUNDING LIMIT: Collier County will not provide more than $460,000 for the Local Government Area of Opportunity Funding or Amount Required by FHFC for LGAOF designation.

4. DISCLAIMER

The County is taking no responsibility of Florida Housing Finance Corporation in their initial scoring, or in any scoring revisions that take place due to legal disputes between or amongst applicants in FHFC RFA 2023-201, will ultimately agree that the loan meets the requirements to achieve the points for the Local Government Area of Opportunity funding or to achieve the points for a local government contribution. The County is assuming NO LIABILITY if FHFC or any judicial or quasi-judicial body comes to another conclusion.

If approved for a loan, and with that understanding, if you would like to have a local government contribution loan form executed by the County, please fill out the form and submit to both Sarah Harrington and Kristi Sonntag prior to the RFA submission deadline.

5. WAIVERS, ERRORS & RIGHT TO OBTAIN ADDITIONAL INFORMATION FROM APPLICANTS

The County Manager reserves the right to waive any provision of the NOFA and/or the accompanying application. The County Manager reserves the right to waive any minor irregularity in the application, with the County Manager to be the sole entity to determine what constitutes a “minor irregularity”. The County Manager also reserves the right to seek additional and/or clarifying information from any Applicant and to use that information in their evaluation and decision-making process.

6. SYSTEM FOR AWARD MANAGEMENT (SAM)

In order to contract with the federal government, businesses and agencies must complete the required registration with SAM. Registration is free and it takes 10 business days for your business or agency information to be verified with that from the IRS and Dun and Bradstreet.

If awarded under this application process, you will be required to have a SAM number. Please visit https://uscontractorregistration.com/sam-registration/ to complete the registration process.

Public Notice

Fast-Track Permitting and Review Process

The Fast-Track Permitting and Review Process is to allow for expedited reviews of all zoning actions and permitting applications, which include affordable housing. This process typically saves a developer both time and money, and may be applied to new or expanding development orders.

In order to qualify, the applicant for a proposed development order must:

Specifically request affordable housing expedited review;
Construct a development that contains a minimum of 20% of the total number of approved units as approved affordable housing in the 140% or below of the household area median income category; and,
Obtain the Collier County Housing Policy & Economic Development-issued qualification certificate before the Growth Management Community Development Department (GMCD) review process.

For more information, please contact the Collier County Community and Human Services Division at 239-252-CARE (2273) or housinginfo@colliercountyfl.gov. You can view our Fast track permitting and review process resolution here.

Affordable Housing Expedited Review Form

Florida Neighborhood Revitalization Program Application

Developers/builders that provide affordable housing units may apply for reimbursement of all the sales and use taxes paid on any material used to build the unit (7% on overage). You must complete construction and receive the Certificate of Occupancy before you can submit the application.

Download the application.

Impact Fee Deferral Program

Through the Impact Fee Deferral Program, Collier County agrees to defer the payment of impact fees for any new owner-occupied or rental housing unit, which qualifies as affordable. The program is available to units targeting up to 120% of the area median income. The fees are deferred for ten years for qualifying rental units (deferrals longer than ten years may be approved by the Collier County Board of County Commissioners). Deferrals on owner-occupied units are due upon sale, refinance or loss of homestead exemption.

In order to qualify, submit an application to the county for consideration. Upon approval, a $350 application fee is required. Completed applications can be mailed or delivered in-person to Collier County’s Community and Human Services Division Office.

Innovation Zones

The Collier County Board of County Commissioners created Innovation Zones in 2010 to promote economic development and diversify the local economy by encouraging the construction of corporate headquarters and manufacturing plants as well as to improve neighborhoods.

Innovation Zones offer economic incentives to create higher-paying jobs outside of Collier County’s three top industries – hospitality, agriculture and construction/real estate – that help cover permit and impact fees as well as development and construction costs.

Currently, Collier County has three designated Innovation Zones: Ave Maria, Activity Center No. 9 and Golden Gate City. These zones are similar to Community Redevelopment Areas, which help enhance the appeal of communities that would gain the most economical benefits.

Interested in an Innovation Zone?
To qualify for the incentives, developers must seek project approval by the county commissioners before building. After project approval, developers can use the funds in any lawful manner, including:

Infrastructure required to serve new target businesses, or the expansion of an existing target business;
Payment of county impact fees to be paid by the new target business, or the expansion of an existing target business; and,
Payment of building permit fees, or other county fees related to the construction of structures that serve the target business.

For more information, please visit the county’s webpage.

Opportunity Zones

Qualified Opportunity Zones were created by the 2017 Tax Cuts and Jobs Act. These zones are designed to spur economic development and job creation in communities that would benefit from revitalization throughout the country and U.S. possessions by providing tax benefits to those who invest eligible capital into these communities. Taxpayers may defer tax on eligible capital gains by making an investment in a Qualified Opportunity Fund and meeting other requirements.

Providing a tax deferment incentive encourages long-term investment and job creation in targeted communities. This is one strategy to enhance the ability to attract businesses, developers and financial institutions to invest in targeted areas, or distressed communities.

What is a Qualified Opportunity Fund?
A Qualified Opportunity Fund is an investment vehicle that files either a partnership, or corporation federal income tax return and whose purpose is to invest in Qualified Opportunity Zone property. The fund model also enables a broad array of investors to pool their resources in Opportunity Zones, increasing the scale of investments in underserved areas. It also offers many tax benefit tiers, including a permanent exclusion from taxable income of capital gains from the sale or exchange of an investment in the fund, if the investment is held for at least 10 years.

More information is available on the county’s Opportunity Zone webpage.

Interested in forming a qualified Opportunity Fund?
An eligible corporation or partnership self-certifies by filing Form 8996 with its federal income tax return.

Additional Resources
This IRS FAQs sheet and this Florida Department of Economic Opportunity page answer more questions about the federal program. Also, the Economic Innovation Group created an informative fact sheet.

Rental Rehabilitation

This program is designed to rehabilitate rental units in Collier County. Loans will be given to non-profit/for-profit housing landlords/owners who have site control and ownership of the properties to rehabilitate existing single-family, multifamily or mobile/manufactured rental units on scattered site or a rental complex. Assistance may be provided for large projects involving the repair of multiple rental units. This program is currently covered for fiscal years 2019-2020, 2020-2021 and 2021-2022.

Those who fall under extremely low, very low, low and moderate income levels may qualify under this program. The maximum award per property is $500,000, with a maximum per unit award amount of $30,000.

For more information about rental rehabilitation please see page 16 of the SHIP Local Housing Assistance Plan.