HomeMy WebLinkAbout2001-026
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RESOLUTION NO. 2001-26
RESOLUTION OF THE MAYOR AND COMMON COUNCIL
APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE A
THREE (3) YEAR HOME AGREEMENT BY AND BETWEEN THE
CITY OF SAN BERNARDINO AND NEIGHBORHOOD HOUSING
SERVICES OF THE INLAND EMPIRE, INC., (NHSIE) IN THE
AMOUNT OF $240,000 SUBJECT TO ANNUAL FEDERAL HOME
FUNDS BEING AVAILABLE TO THE CITY - HOME BUYER
EDUCATION PROGRAM
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BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF
THE CITY OF SAN BERNARDINO AS FOLLOWS:
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SECTION I. The Mayor is hereby authorized and directed to execute on behalf of said
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City the Agreement by and between the City of San Bernardino and Neighborhood Housing
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Services of the Inland Empire, Inc., (NHSIE) in the amount not to exceed $240,000, subject to
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annual Federal HOME funds being made available to the City for the City's Homebuyer
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Education Program; a copy of said Agreement is on file with the City Clerk and incorporated
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herein by reference as though fully set forth at length.
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SECTION 2. The authorization to execute the above referenced Agreement is rescinded
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if the parties to the Agreement fail to execute it within sixty (60) days ofthe passage of this
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Resolution.
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NHS 3 Yr Agmt
01/22/01
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2001-26
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL
APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE A
THREE (3) YEAR HOME AGREEMENT BY AND BETWEEN THE CITY
OF SAN BERNARDINO AND NEIGHBORHOOD HOUSING SERVICES
OF THE INLAND EMPIRE, INC., (NHSIE) IN THE AMOUNT OF
$240,000 SUBJECT TO ANNUAL FEDERAL HOME FUNDS BEING
AVAILABLE TO THE CITY - HOMEBUYER EDUCATION PROGRAM
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6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
Joint
7 Common Council of the City of San Bernardino at a Regular meeting thereof, held on the
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22nd day of January
,2001, by the following vote to wit:
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Council Members:
Ayes Nays
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X
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X
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Abstain
Absent
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ESTRADA
LIEN
MCGINNIS
SCHNETZ
SUAREZ
ANDERSON
MC CAMMACK
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(]~h.~
RachB G. Clark, City Clerk
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19 The foregoing resolution is hereby approved this 25th day of January
,2001.
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Esther Estrada
Mayor Pro Tem
Approved as to form and Legal Content:
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James F. Penman
City Attorney
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By: lk/h-.eo t. /lfi'fr~
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NHS 3 Yr Agmt
01122/01
2001-26
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HOME AGREEMENT
(2000-2003 HOME Funds)
(Neighborhood Housing Services ofthe Inland Empire, Inc.)
(NHSIE)
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THIS AGREEMENT is made and entered into this 22nd day of January 2001,
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by and between the City San Bernardino, a municipal corporation (hereinafter referred to as
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"City"), located in the City of San Bernardino and the Neighborhood Housing Services of the
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Inland Empire, Inc. (NHSIE), 1390 North "D" Street, San Bernardino, California 92405. The
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parties agree as follows:
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RECITALS
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WHEREAS, the City has received formula HOME Investment Partnership allocation for
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Fiscal Years 2000 and 2001 and anticipates receiving said funds yearly thereafter, from the
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federal Department of Housing and Urban Development (HUD) to carry out eligible activities in
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accordance with federal program requirements at 24 CFR 92 (the "Program"), and the Economic
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Development Agency ("Agency") is designated to administer such Program on behalf of the
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City; and
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WHEREAS, the City desires to grant the sum of Eighty Thousand Dollars ($80,000)
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annually, of HOME funds, for a period of three (3) years, to NHSIE for the Homebuyer
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Education Program operating expenses, per 24 CFR 92208(a); and
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WHEREAS, the City desires to execute a three (3) year Homebuyer Education Program
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Agreement with NHSIE, renewable annually subject to the City receiving its annual Federal
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HOME Grant from HUD; and
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WHEREAS, NHSIE is desirous of participating in activities eligible under HOME, and
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further agrees that the beneficiaries of its activities under the program and this Agreement, are or
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will be individuals or families who meet the income eligibility guidelines at Title 24 CFR part
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92217; and
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WHEREAS, the City deems the activities to be provided by NHSIE as consistent with
2 and supportive of the HOME Program and is consistent with the City of San Bernardino's 2000-
3 OS Consolidated Plan and Housing Element, and that NHSIE requires the financial support of the
4 City to implement this program; and
5 WHEREAS, the Agency, acting in the capacity of Administrator, will monitor and
6 administer NHSIE to ensure compliance with all HOME Program requirements, and that NHSIE,
7 will comply with all program requirements under 24 CFR 92.
8 NOW, THEREFORE, THE PARTIES MUTUALLY AGREE AS FOLLOWS:
9 L CERTIFYING THE NONPROFIT:
10 A. Legal Status. The nonprofit organization is organized under state or local laws, as
II evidenced by a charter or articles of incorporation. No part of its net earnings inure to the benefi
12 of any member, founder, contributor, or individual, as evidenced by the same. The nonprofit
13 organization must have a tax exemption ruling from the Internal Revenue Service (IRS) under
14 Section SOI(c) of the Internal Revenue Code of 1986, as evidenced by a SOI(c) certificate from
15 the IRS. Also, the nonprofit organization has among its purposes the provision of decent
16 housing that is affordable to low and moderate income people, as evidenced by a statement in the
17 organization's charter, articles of incorporation, by-laws or resolutions.
18 B. Capacity. The nonprofit organization conforms to the financial accountability
19 standards of24 CFR 8421, "Standards for Financial Management Systems", as evidenced by a
20 notarized statement by the organization CEO or president, a CPA or a HUD-approved audit
21 summary. NHSIE has a demonstrated capacity for carrying out activities assisted with HOME
22 funds and affordable housing programs through the stated experience of key staff members or
23 contract(s) with consultants who have experience with related projects to train key staff. Also
24 NHSIE has shown a history of serving the community where housing to be assisted with HOME
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funds has been used by the attached statement that documents at least one year of experience in
2 serving the community as depicted in Exhibit "A" herein.
3 C. Relationship with For-Profit Entities. NHSIE is not controlled, nor receives
4 directions from individuals or entities seeking profit from the organization, as evidenced by the
5 organization's by-laws or a memorandum of understanding. NHSIE may be sponsored or
6 created by a for-profit entity, however:
7 I. The for-profit entity's primary purpose does not include the development or
8 management of housing, as evidenced in its by-laws; and
9 2. NHSIE is free to contract for goods and services from vendor(s) of its own choosing,
10 as evidenced in its by-laws, charter or articles of incorporation.
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SCOPE OF SERVICES AND COMPENSATION
12 A. Amount of Granl: Pursuant to the conditions being met in Section L Above, City
13 agrees to Grant Eighty Thousand dollars ($80,000) (the "Grant") annually for fiscal year 2000-
14 2001,2001-2002, and 2002-2003, subject to federal HOME funds being available to the City for
15 the Homebuyer Education Program, for a total compensation of $240,000.
16 B. Use of Grant Funds: The Grant funds will be used to pay the operating expenses of
17 NHSIE including but not limited to the costs of salaries, wages, and other employee
18 compensation and benefits; employee education, training; rent; utilities; taxes; insurance;
19 equipment; materials and supplies and more specifically to implement and administer the
20 Homebuyer Education Program depicted in Exhibit "B" herein.
21 1. Tasks to be performed:
22 NHSIE shall develop, manage and support the Homebuyer Education Program for low
23 and moderate income households through projects that include, but are not limited to, assistance
24 to eligible homebuyers, marketing and outreach services pertaining to the expansion,
25 improvement, or preservation of low and moderate income housing (see Exhibit "B").
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I 2. Schedule for Completion of TaskslTerm of Agreement:
2 Upon execution of this Agreement, NHSIE agrees to provide the services outlined in the
3 body of this Agreement commencing on January 22, 2001 through January 22,2004, subject to
4 and conditioned upon the City receiving its annual allocation of federal HOME funds for the
5 term of this Agreement Should the City no longer receive federal HOME funds, particularly
6 during the term of this Agreement then this Agreement shall terminate and the parties shall have
7 no further obligation to each other relative to this Agreement
8 C. Other Program Requirements
9 1. NHSIE must carry out each activity in compliance with all federal laws and
10 regulations described in Subpart H of 24 CFR 92 and outlined hereinafter, except that NHSIE
11 does not assume the Agency's/City's responsibility for environmental review in Section 92.352
12 or the intergovernmental review process in Section 92.357. These federal laws and regulations
13 must be complied with as follows:
14 a. Equal Opportunity. No person shall be excluded from participation in, be denied the
15 benefits of or be subjected to discrimination under any program or activity funded in whole or in
16 part with HOME funds. In addition, HOME funds must be made available in accordance with al
17 laws and regulations listed in Section 92.350(a).
18 b. Fair Housing. In accordance with the certification made with its housing strategy,
19 each participating jurisdiction must affirmatively further fair housing. Actions described in
20 Section 570.904(c) of Title II of the Cranston-Gonzales National Affordable Housing Act will
21 satisfy this requirement
22 c. Conflict ofInterest NHSIE will hereby comply with all requirements set forth
23 regarding conflict of interest provisions as they apply in Section 92.356.
24 d. Debarment and Suspension As required in Section 92.357, NHSIE will comply
25 with all debarment and suspension certifications.
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2. Hold Harmless. NHSIE agrees to indemnify, defend, and save harmless the City
and Agency, its officers, agents, and employees from any and all claims and losses accruing or
resulting to NHSIE or any and all contractors, subcontractors, materialmen, laborers and any
other person, firm, or corporation furnishing or supplying work, services or supplies in
connection with the performance of this Agreement, and from any and all claims and losses
accruing or resulting to any person, firm, or corporation who may be injured or damaged by
NHSIE in the performance of this Agreement Without limiting NHSIE's indemnification of
Agency, NHSIE shall provide and maintain at its own expense during the term of this Agreement
the following program( s) of insurance covering its operation hereunder. Such insurance shall be
provided by insurer( s) satisfactory to Agency and evidence of such programs satisfactory to
Agency shall be delivered to the Executive Director of the Agency or his designee within ten
(10) days of the effective date of this Agreement
General Liability: A program including, but not limited to, comprehensive general
liability with a combined single limit of not less than one million dollars ($1,000,000) per
occurrence. Such insurance shall be primary to and not contributing with any other insurance
maintained by the City/Agency, and shall name the City and Agency as an additional insured.
Such insurance shall require the Agency be notified at least ten (10) days in advance of any
change or cancellation of said insurance.
D. Request for Disbursement of Funds
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I. NHSIE may request grant funds monthly, on a reimbursement basis, for eligible costs,
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on a prorata basis, up to maximum of $240,000. The amount of each request will be limited to
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the amount substantiated in the invoices submitted for costs incurred operating the Homebuyer
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Education Program.
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E. Records and Reports
2 I. The City/Agency will require that NHSIE maintain the following records and reports
3 in order to assist the City/Agency in meeting its record keeping and reporting requirements:
4 (a) Records, including individual project and construction records and a running log
5 demonstrating compliance with the applicable provisions of Section 92.508(2) of the HOME
6 Investment Partnership Program; and
7 (b) Continuing compliance with the HOME Program shall be certified and reported to
8 the Agency on a quarterly basis to comply with HOME reporting requirements.
9 (c) Any other legal reports and/or records requested by the City/Agency to document the
10 provisions of all affordable housing projects or programs.
II 2. NHSIE shall retain and provide access to all records for the period of five (5) years
12 from the date of this Agreement in accordance with the requirements of Section 92.508(6)(c) and
13 (d).
14 III.
GENERAL PROVISIONS:
15 A. Enforcement of the Agreement
16 I. The City or Agency shall have the right, by prior written notice to NHSIE, to enforce
17 by deed restriction, the affordability requirements in Section 92.254, or any other such violation,
18 as is brought to the attention of the City or Agency regarding the property(ies) being developed
19 with the use of HOME funds pursuant to this Agreement, if any. In the event ofa breach of any
20 condition or provision hereof, the Agency shall have the right, by prior written notice to NHSIE,
21 to suspend or terminate this Agreement if NHSIE materially fails to comply with any of its
22 terms.
23 2. The City or Agency, at its discretion, may terminate this Agreement, in whole or in
24 part, by giving NHSIE written notice in accordance with 24 CFR 85.44, which provides in part
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that suspension or termination may occur ifNHSIE materially fails to comply with any term of
2 this Agreement
3 B. Monitoring
4 1. The Agency, is responsible for managing the day-to-day operations of the HOME
5 program; for monitoring the performance of all entities receiving HOME funds from the Agency
6 to ensure compliance with the requirements of Subpart K, 24 CFR 92, and for taking appropriate
7 action when performance problems arise.
8 2. Not less than annually, the Agency will review the activities ofNHSIE, to assess
9 compliance with the requirement of Subpart K, 24 CFR 92, as set forth in this Agreement
10 C. Notices. Any notice requirement set forth herein shall be deemed satisfied three (3)
II days after mailing of the notice first-class United States certified mail, postage prepaid,
12 addressed to the appropriate party as follows:
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NHSIE:
Neighborhood Housing Services of the
Inland Empire, Inc.
1390 North "D" Street
San Bernardino, CA 9240S
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Agency:
City of San Bernardino
Redevelopment Agency
201 North "E" Street, Suite 301
San Bernardino, CA 9240 I
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Such addresses may be changed by notice to the other party given in the same manner as
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provided above.
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D. Attornev's Fees. In addition to any other remedies provided hereunder or available
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pursuant to law, if either party brings an action or proceeding to enforce, protect or establish any
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right or remedy hereunder, the prevailing party shall be entitled to recover from the other party
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its costs of suit and reasonable attorney's fees. The costs, salary and expenses of the City
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Attorney and members of his office in enforcing the Agreement on behalf of the City or Agency
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shall be considered as "attorney's fees" for the purposes of this paragraph.
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E. No Third Parties Benefited. This Agreement is made and entered into for the sole
2 protection and benefit of the City and Agency, its successors and assigns, and NHSIE, its
3 permitted successors and assigns, and no other person or persons shall have any right of action
4 hereon.
5 F. Agencv to File Notices. NHSIE irrevocably appoints, designates, and authorizes the
6 Agency as its agent (said agency being coupled with an interest) to file at its option for record
7 any notices of completion, cessation of labor, or any other notice that the Agency deems
8 necessary or desirable to protect its interest hereunder.
9 G. Actions. The City or Agency shall have the right to commence, appear in, or defend
10 any action or proceeding purporting to affect the rights, duties, or liabilities of the parties
11 hereunder, or the disbursement of any proceeds of the Agency allocation of HOME funds.
12 H. Successors and Assigns. The terms hereof shall be binding upon and inure to the
13 benefit of the successors and assigns of the parties hereto; provided, however, that no assignment
14 ofNHSIE's rights hereunder shall be made, voluntarily or by operation oflaw, without the prior
15 written consent of the City or Agency, and that any such assignment without said consent shall
16 be void.
17 L Construction of Words. Except where the context otherwise requires, words imparting
18 the singular number shall include the plural number and vice versa, words imparting persons
19 shall include firms, associations, partnerships and corporations, and words of either gender shall
20 include the other gender.
21 J. Partial Invalidity. If any provision of this Agreement shall be declared invalid, illegal,
22 or unenforceable, the validity, legality, and enforceability of the remaining provisions hereof
23 shall not in any way be affected or impaired.
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K. Governing: Law. This Agreement and any other instruments given pursuant hereto
2 shall be construed in accordance with and be governed by the laws of the State of California and
3 the pertinent HOME regulations.
4 L. Amendment This Agreement may not be changed orally, but only by agreement in
5 writing signed by NHSIE and the City.
6 M. Approvals. Where an approval or submission is required under this Agreement, such
7 approval or submission shall be valid for purposes of this Agreement only if made in writing.
8 N. Captions and Headings. Captions and headings in this Agreement are for
9 convenience of reference only, and are not to be considered in construing the Agreement
10 O. Entire Agreement This Agreement shall be executed in triplicate, each of which is
11 deemed to be an original. This Agreement includes 10 pages and Exhibits A and B which
12 constitute the entire understanding and agreement of the parties.
13 This Agreement integrates all of the terms and conditions mentioned herein or incidental
14 hereto, and supersedes all negotiations or previous agreements between the parties.
15 P. Authority. The individuals executing this Agreement and the instruments referenced
16 herein on behalf ofNHSIE each represent and warrant that they have the legal power, right and
17 actual authority to bind NHSIE to the terms and conditions hereof and thereof.
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IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed
2 the day and year first above written.
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CITY OF SAN BERNARDINO
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Attest:
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(1~)/;). ~
Rachel'clark, City Clerk
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Approved as to Form and
Legal Content:
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NHSIE
NEIGHBORHOOD HOUSING SERVICES
OF THE INLAND EMPIRE, INC.,
A California Nonprofit Corporation
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EXHIBIT "B"
Scope of Work
Homebuyer Education Program
Homebuyer Education Learning Program (H.E.L.P) will provide two, eight hour courses to each
prospective buyer in the City of San Bernardino. The courses will consist of:
5 1. Budgeting for a home purchase:
a. Goal Setting
6 b. Prioritizing
c. Budgeting (put a budget together in class)
7 d. Energy Efficient Mortgage (20 min. video tape)
8 2.
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Shopping for a home:
a. Responsibilities that a buyer has to a realtor.
b. Realtors responsibilities to buyer.
c. Selecting the right house and neighborhood.
d. Different ways to house hunting
e. Explaining the real estate purchase contract.
f. Contingencies
g. Negotiating
h. Counter Offer
I. Writing an offer on a HUD home.
J. Opening escrow.
k. Walk through
l. Home inspections (briefly)
Shopping for a loan:
a. Different type of lenders (direct, brokers, and banks)
b. Mortgage Insurance
c. Different type of loan products
d. Review Quiz 1 as a group
e. Mortgage loan application process
f. Pre-qualification worksheet
g. Good faith estimate of settlement costs
h. Loan processing (PITI)
J. Sufficient money to close
k. Review Quiz 2 as a group
l. Truth in Lending Disclosure statement
At the end of two (2), eight (8) hour courses, NHSIE shall issue a Certificate of Completion to each
participant.
Provide accurate and quarterly reports to Agency on homebuyers that participated in the Homebuyer
Education Program and purchased a home in the City.
It will cost NHSIE $350 per household not to exceed $80,000 a year to run the program of which not
25 more than $2000 will be used to create an incentive program for participants who buy a home in San
Bernardino. This incentive program is subject to the approval of the Agency's Housing Director.
,11,