Item Coversheet
ITEM 11.
County Manager - Consent

AGENDA ITEM REPORT

DATE:September  3, 2024 
DEPARTMENT:County Manager
REQUESTER:Glen Salyer 
TITLE:Execute Agreements for CDBG-DR Multi-Family Rehabilitation Projects 

I.MOTION REQUESTED
 

A. Authorize Board Chair, on behalf of the Board, to execute subrecipient and developer agreements for awarded CDBG-DR multi-family rehabilitation projects.

 

B.  Authorize the County Manager or designee to execute any amendments or change orders to CDBG-DR written agreements in accordance with CDBG-DR policies and procedures.


II.ITEM SUMMARY
 Provides CDBG-DR Multi-Family Housing Rehabilitation funding for projects at Palm City Gardens (1625 Marsh Ave.) in the amount of $10,000,000 and Broadway Apartments (909 & 2929 Broadway Ave.) in the amount of $2,879,516. These two projects represent 140 of the 836 affordable housing units awarded rehabilitation grants by the BoCC on May 21, 2024.
III.BACKGROUND AND IMPLICATIONS OF ACTION
 A)Board Action and Other History
  The U.S. Department of Housing and Urban Development (HUD) announced that Lee County will receive $1,107,881,000 in funding to support long-term recovery efforts following Hurricane Ian (FEMA – 4673 – DR) through the Office of Disaster Recovery (ODR) within the Office of Community Planning and Development. Community Development Block Grant-Disaster Recovery (CDBG-DR) funding is designed to address needs that remain after all other assistance has been exhausted. Program rules are detailed in 88 FR 32046 (May 18, 2023) and other relevant federal statutes and regulations. In accordance with Federal Register Notice 88 FR 32046 and as approved by the Board of County Commissioners, Lee County submitted the Action Plan for Community Development Block Grant – Disaster Recovery (CDBG-DR) funds on September 19, 2023. HUD approved the Action Plan on November 7, 2023.

The BoCC authorized the launch of the Multi-Family Housing Rehabilitation NOFA on December 5th, 2024 and awarded CDBG-DR funding to eligible applicants on May 21st, 2024.
 B)Policy Issues
  
 C)BoCC Goals
  
 D)Analysis
  

Lee County’s Office of Strategic Resources and Government Affairs submitted Lee County’s Action Plan for CDBG-DR funds to HUD on September 19, 2023, which HUD approved on November 7, 2023. The Action Plan identifies several programs to address unmet recovery needs resulting from Hurricane Ian.

Lee County has allocated $50,000,000 in CDBG-DR funding for multi-family housing rehabilitation. The request for funds was made available to public housing authorities, for-profit developers, and not-for-profit developers through a competitive application process.

The BoCC authorized the launch of the Multi-Family Rehabilitation NOFA on December 5, 2023. Eligible applicants submitted their applications prior to the deadline on March 1, 2024. Threshold reviews were completed to identify the applications that met the program requirements. The applications were then reviewed and scored according to the rubric included in the NOFA. The Multi-Family Housing Rehabilitation Evaluation Committee met on April 5, 2024, to evaluate the applicants' proposals. On May 21, 2024, the BoCC awarded CDBG-DR funds to projects recommended by the Evaluation Committee.

Now that awarded projects have undergone a full risk assessment and underwriting analysis, subrecipient agreements have been finalized for execution. The attached agreements will be effective August 1, 2024 and include a requirement that the recipients maintain affordable rental rates for a minimum of 20 years, as enforced by a restrictive covenant that runs with the assisted property.

 

Applicant

Project Name

CDBG-DR Funding

Dunbar Improvement Association, Inc.

Palm City Garden Apartments

$10,000,000

Southwest Florida Affordable Housing Choice Foundation

Broadway Apartments

$2,879,516

Total CDBG-DR Grant Funding

$12,879,516


 E)Options
  
IV.FINANCIAL INFORMATION   
 A)Current year dollar amount of item:
$12,879,516
 B)Is this item approved in the current budget?Yes
 C)Is this a revenue or expense item?Expense
 D)Is this Discretionary or Mandatory?Discretionary   
 E)Will this item impact future budgets?
If yes, please include reasons in III(D) above.
No
 F)Fund: Federal Grants through General Fund
Program: Community Development Block Grant – Disaster Recovery Funds
Project: CDBG-DR
Account Strings: 11137113301  
 G) Fund Type?Other:  Community Development Block Grant- Disaster Recovery 
 H)Comments:

CDBG-DR Grant Funded

 

Hurricane Ian – Recovery & Resilience 
V.RECOMMENDATION
   
VI.TIMING/IMPLEMENTATION
 Written agreements will be executed by subrecipients and routed for BoCC signature as soon as possible.

SRGA staff and contracted program implementation vendors will oversee funded projects throughout the agreement terms.
VII.FOLLOW UP
 The Board Chair may need to approve any future amendments to the contracts, for this and previous fiscal years, in accordance with CDBG-DR policies and procedures.
ATTACHMENTS:
DescriptionUpload DateType
Broadway Apartments CDBG-DR Award Acceptance Agreement8/13/2024Agreement
Palm City Garden Award Acceptance Agreement8/15/2024Agreement
Palm City Developer Agreement - Partially Executed8/27/2024Agreement
Broadway Apartments CDBG-DR Developer Agreement8/19/2024Agreement
REVIEWERS:
DepartmentReviewerActionDate
County ManagerSalyer, Glen Approved8/22/2024 - 8:59 AM
Budget ServicesHenkel, Anne Approved8/22/2024 - 10:37 AM
Budget ServicesWinton, PeterApproved8/22/2024 - 12:02 PM
County AttorneySwindle, AmandaApproved8/23/2024 - 2:28 PM
County ManagerSalyer, Glen Approved8/26/2024 - 10:34 AM