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County Administrator's Report 12. 4.
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| BCC Regular Meeting |
Discussion |
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| RECOMMENDATION: |
Recommendation Concerning Forest Creek Apartments Flood Mitigation Assistance Agreement - Tonya Green, Neighborhood & Human Services Department Director
That the Board select from the following action concerning the Forest Creek Apartments Flood Mitigation Assistance Agreement:
A. Authorize staff, by super majority vote, to make an offer on the Forest Creek Apartments, not to exceed $11.9 million, the Grant allowed maximum (the average of two County appraisals is $10 million);
B. Direct staff regarding the inclusion of the project based vouchers associated with the property as part of acquisition negotiations;
C. Identify the 10% local match funds of $1,947,747.74; and
D. Request an extension from the State of Florida Emergency Management;
OR
E. Terminate the Agreement.
[Funding: FEMA Flood Mitigation Grant, Fund and Cost Center to be determined; Match funding, Fund and Cost Center to be determined] |
| BACKGROUND: |
Forest Creek Apartments, located at 34 Patton Drive in the Warrington community, is a privately owned 200-unit rental complex that is directly subsidized by the U.S. Department of Housing and Urban Development (HUD) through a contract with Marquis Group, the owner. This complex has flooded repeatedly dating back through the 1980’s up through recent flooding events, which has resulted in the temporary relocation of residents on each occurrence. Post-Ivan flood zone revisions place the entire complex within an AE flood zone. This complex was eligible to apply under the competitive FEMA Flood Mitigation Assistance (FMA) Program for acquisition/relocation to eliminate future flooding of the facility and to enhance safety of the residents as well as make improvements to the Jones Creek area.
At the May 5, 2016 Board meeting, the Board approved submitting another competitive application for the FEMA Flood Mitigation Assistance Grant (Exhibit I). Application was also made in 2015 and in 2014, but was not recommended for award. The total grant outlined in the Agreement (Exhibit II) as approved by the Board on January 18, 2018 is $19,477,477.40, which includes $17,529,729.66 in FEMA funds and requires a 10% local match of $1,947,747.74. At the time of application in 2016, RESTORE funds were identified as the match for this project as the project was ranked high on the scoring for funds.
The scope of work includes acquisition of the existing complex, relocation of all 200 households to alternate housing (including homebuyer assistance if desired by tenants), demolition of the existing buildings and all site improvements, and restoration of the property to a natural state effectively to enhance stormwater retention in this area. The future use of the property would be deed restricted to prohibit redevelopment.
The County received notification of award of Contract #18FM-X8-01-27-01-378 in late 2017 and ordered two appraisals on the property through Board action on November 2, 2017. At the January 18, 2018 Board meeting, the Board authorized staff to negotiate a sales price and bring back to the Board for consideration. One appraisal valued the property at $9.5 million and one valued the property at $10.5 million, for an average of $10 million. The owner countered with an appraisal of $15.5 million. The grant application estimated acquisition costs at $11.9 million, and the grant will not permit a purchase price in excess of this amount. This item was brought to the April 12, 2018 Committee of the Whole, but was dropped. The owners of Forest Creek were present at the May 10, 2018 Committee of Whole meeting, and discussion centered on the appraisals obtained by the County as well as the project based vouchers (PBV) with the complex. At the November 8, 2018 Committee of the Whole meeting, there was extensive discussion, but no action was taken (Exhibit III).
Relocation of tenants and what will occur to the project based vouchers has been an ongoing point of concern for the County. Due to the owner having a project based contract with HUD, whatever is proposed in relation to acquisition of the property must be approved by the HUD multifamily division. Any relocation must follow guidelines as outlined in the Federal Uniform Relocation Act (URA). The URA mandates provision of advisory services for tenants, payment of rental assistance, payment of non-refundable security deposits, moving expenses, and there is an option for down payment assistance up to $5250 if the tenant opts for that route. Several options regarding the PBV could be considered in negotiating acquisition of the property with the owner:
- Owner keeps the HUD contract and transfers it to another property or properties either here in Escambia County or elsewhere in Florida as permitted by HUD. In this scenario, the FEMA grant be utilized for tenant relocation. With closed/long waiting lists for many subsidized complexes, the Area Housing Commission, and the Section 8 Housing Choice Voucher (HCV) program, relocation specialists will need to work to immediately get tenants on waiting lists and help with deposits and applications. It is probable that the County will need to use some funding to help with the relocation of some of the tenants that are hardest to house, particularly those that are extremely low income or have rental histories that would prohibit their eligibility at other rental complexes. This funding could possibly be considered part of the match.
- Owner requests release of HUD contract and HUD approves conversion of project based vouchers to HCV. The City of Pensacola is the public housing authority (PHA) that runs the HCV program and would administer these new vouchers. The 200 project based vouchers does not necessarily mean that the area will receive 200 HCV. Staff recommends that Forest Creek tenants would get priority for these converted vouchers. If this is allowed, this should decrease project costs as tenants would have option of utilizing these vouchers in lieu of the grant having to pay the relocation costs. Down payment assistance would be provided as an option for tenants if they preferred that to renting.
- With approval from HUD, the owner releases their HUD contract to a combination of the HCV program and to units owned by Area Housing Commission (AHC) that are currently unsubsidized. Again, staff would request priority from HUD for Forest Creek tenants to receive first preference for the Section 8 HCV or AHC units.
The grant period of performance ends on August 30, 2019, so a determination needs to be made whether to request an extension and move forward with the project or to terminate the Agreement. |
| BUDGETARY IMPACT: |
The Grant application totals $19,477,477.40, of which $17,529,729.66 is the federal share of the project. A minimum match of 10% is required as a local share. The local match has not been confirmed.
No FEMA funds have been received to date. Neighborhood Enterprise Division has expended $10,000 on the two appraisals from affordable housing funds.
Estimated Project costs according to submitted application budget:
| Property Acquisition |
$12,040,952.00 |
| Relocation Assistance Costs |
$1,397,920.00 |
| Demolition & Debris Removal/Site Work |
$5,793,642.50 |
| Grant Management Costs |
$244,962.90 |
| TOTAL: |
$19,477,477.40 |
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| LEGAL CONSIDERATIONS/SIGN-OFF: |
| N/A |
| PERSONNEL: |
| The relocation of the tenants will require the hiring of multiple relocation specialists to comply with Uniform Relocation Act requirements. Funding for this personnel is included in the grant funds. The application also included clerical support staff and grant management costs in the budget. |
| POLICY/REQUIREMENT FOR BOARD ACTION: |
| N/A |
| IMPLEMENTATION/COORDINATION: |
| If moved foward, staff from Natural Resources Management Department and Neighborhood & Human Services Department will make outreach to the owner and to the State of Florida Emergency Management regarding the grant extension request. Grant management may be potentially supplemented by outside consultant(s) with FEMA expertise. |
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