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HomeMy WebLinkAbout1999-092 !' : ~ 1 RESOLUTION NO: 1999-92 2 3 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE A CONTRACT BY AND BETWEEN THE CITY OF SAN BERNARDINO AND NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE, INC., (NHS) FOR PURPOSES OF CARRYING OUT THE MOBILE HOME PARK HANDYWORKER PROGRAM 4 5 6 7 8 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 9 10 11 SECTION 1. The Mayor is hereby authorized and directed to execute on behalf 12 of said City an Agreement with the Neighborhood Housing Services of the Inland Empire, Inc., 13 (NHS) to implement the Owner-Occupied Mobile Home Park Handyworker Program, a copy of 14 which is attached hereto, marked Exhibit "A" and incorporated herein by reference as though 15 fully set forth at length. 16 SECTION 2. The authorization to execute the above referenced Agreement is 17 rescinded if the parties to the Agreement fail to execute it within sixty (60) days of the passage 0 18 this resolution. 19 fIll 20 fIll 21 fIll 22 fIll 23 fIll 24 fIll 25 fIll 26 fIll 27 fIll 28 fIll fIll Page 1 of 2 1999-92 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE MAYOR 2 TO EXECUTE A CONTRACT BY AND BETWEEN THE CITY OF SAN BERNARDINO AND NEIGHBORHOOD HOUSING SERVICES OF THE 3 INLAND EMPIRE, INC., (NHS) FOR PURPOSES OF CARRYING OUT THE MOBILE HOME PARK HANDYWORKER PROGRAM 4 5 6 I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a ioint reQular meeting thereof, held , 1999 by the following vote, to wit: AYES ---'L- ---'L- ---'L- ---'L- ---'L- ---'L- ~ NAYS ABSTAIN ABSENT 12 13 14 15 16 17 -~ ~. JJ, ~'-- City lerk The foregoing resolution is hereby approved this Mav ,1999. day of 18 Approved as to form and Legal Content: 19 20 -:;. /?" 21 22 23 24 25 26 27 28 Page 2 of2 : -... , , , 1999-92 /~. 2 HOME AGREEMENT COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO) (1997 HOME Funds) (Neighborhood Housing Services of the Inland Empire, Inc.) (NHS) (Owner-Occupied Mobile Home Handyworker Program) 3 4 5 THIS AGREEMENT is made and entered into this 17th day of Ma 6 1999, by and between the City San Bernardino, a municipal corporation (hereinafter referred to 7 as "City"), located in the City of San Bernardino and in San Bernardino County, and the 8 Neighborhood Housing Services of the Inland Empire, Inc. (NHS), 1390 North "D" Street, San 9 Bernardino, California 92405, a community housing development organization (CHDO) 10 organized pursuant to Title 24 CFR Subpart "G", Section 92.300, et seq., acting herein duly 11 authorized by its Board of Directors. 12 RECITALS 13 WHEREAS, the City has received formula HOME Investment Partnership allocation for 14 Fiscal Year 1997-1998 from the federal Department of Housing and Urban Development (HUD) 15 to carry out eligible activities in accordance with federal program requirements at 24 CFR 92 16 (the "Program"), and has designated the City to administer such Program; and 17 18 WHEREAS, not less than fifteen percent (15%) of the above-mentioned grant amounts shall be set aside and made available to designated CHDOs, in accordance with HUD guidelines 19 20 as per 24 CFR 92.208(a); and WHEREAS, NHS is desirous of participating in activities eligible under HOME, and 21 further agrees that the beneficiaries of its activities under the program and this Agreement, are or 22 23 will be individuals or families who meet the income eligibility guidelines at Title 24 CFR part 92.217; and 24 WHEREAS, the City deems the activities to be provided by NHS as consistent with and 25 supportive of the HOME Program and is consistent with the City of San Bernardino -1- -, 1999-92 Comprehensive Housing Affordability Strategy (CHAS), and the City's 1995-99 Consolidated 2 Plan, and that NHS requires the financial assistance of the City to implement its housing 3 activities; and 4 WHEREAS, the City, acting in the capacity of a grantor, will monitor NHS to ensure 5 compliance with all HOME Program requirements, and that NHS, in its capacity as a CHDO, 6 will comply with all program requirements under 24 CFR 92. 7 NOW, THEREFORE, THE PARTIES MUTUALLY AGREE AS FOLLOWS: 8 1. CERTIFYING THE NONPROFIT AS A CHDO: 9 NHS has satisfied the definition of a CHDO as stated in 24 CFR Subpart A, Section 92.2 10 of the HOME Final Rule. To qualify for receipt and use offederal HOME funds as a CHDO 11 NHS has met the following requirements: 12 A. Legal Status. The nonprofit organization is organized under state or local laws, as 13 evidenced by a charter or articles of incorporation. No part of its net earnings inure to the benefi 14 of any member, founder, contributor, or individual, as evidenced by the same. The nonprofit 15 organization must have a tax exemption ruling from the Internal Revenue Service (IRS) under 16 Section 501 (c) of the Internal Revenue Code of 1986, as evidenced by a 50 I (c) certificate from 17 the IRS. Also, the nonprofit organization has among its purposes the provision of decent 18 housing that is affordable to low and moderate income people, as evidenced by a statement in the 19 organization's charter, articles of incorporation, by-laws or resolutions. 20 B. CaDacitv. The nonprofit organization conforms to the financial accountability 21 standards of24 CFR 84.21, "Standards for Financial Management Systems", as evidenced by a 22 notarized statement by the organization CEO or president, a CPA or a HUD-approved audit 23 SUll1ll1ary. NHS has a demonstrated capacity for carrying out activities assisted with HOME 24 funds and affordable housing programs through the stated experience of key staff members or 25 contract(s) with consultants who have experience with related projects to train key staff. Also -2- . " :-r 1999-92 NHS has shown a history of serving the community where housing to be assisted with HOME 2 funds has been used by the attached statement that documents at least one year of experience in 3 serving the community as depicted in Exhibit "A" herein. 4 C. Organizational Structure. The governing board ofNHS consists of at least 33 percent 5 (33%) residents oflow-income neighborhoods, other low-income community residents, or 6 elected representatives oflow-income neighborhood organizations as evidenced by charter, by- 7 laws or articles of incorporation. NHS provides a formal process for low-income, program 8 beneficiaries to advise the organization in all of its decisions regarding the design, development, 9 and management of all affordable housing projects, through its by-laws, resolutions or a written 10 statement of operating procedures approved by the governing body. While NHS may be 11 chartered by the state or a local government, the public body may not appoint more than one- 12 third of the membership of the organization's governing board and no more than one-third of the 13 governing board members are public officials as evidenced by charter, by-laws, or articles of 14 incorporation. Also, ifNHS is sponsored or created by a for-profit entity, the for-profit entity 15 may not appoint more than one-third of the membership ofNHS's governing body, and the boar 16 members appointed by the for-profit entity may not, in turn, appoint the remaining two-thirds of 17 the board members, as evidenced by the same. 18 D. Relationship with For-Profit Entities. NHS is not controlled, nor receives directions 19 from individuals or entities seeking profit from the organization, as evidenced by the 20 organization's by-laws or a memorandum of understanding. NHS may be sponsored or created 21 by a for-profit entity, however: 22 1. The for-profit entity's primary purpose does not include the development or 23 management of housing, as evidenced in its by-laws; and 24 2. NHS is free to contract for goods and services from vendor(s) of its own choosing, as 25 evidenced in its by-laws, charter or articles of incorporation. -3- , 1999-92 11. SCOPE OF SERVICES AND COMPENSATION A. Amount of Grant: Pursuant to the conditions being met in Section 1. Above, City 2 3 agrees to grant two hundred thousand dollars ($200,000) (the "Grant") of the 1997-1998 HOME 4 Investment Partnership funds for the implementation of the Mobile Home Handyworker Progr 5 (the "Program") that NHS implements as a Community Housing Development Organization 6 (CHDO) pursuant to the HOME Investment Partnership Act. 7 B. Use of Grant Funds (Scope of Work): The Grant Funds will be used by NHS to 8 implement the Mobile Home, Owner-Occupied, Handyworker Program. NHS will provide 9 financial assistance to owner occupants to repair health and safety items, specifically as it relates, 10 to repairs required under State Law, Title 25 Mobile Home Park Act, and local codes. Grant ii Funds may also be used by NHS to pay the costs of salaries, wages and other employee 12 compensation as provided for in Exhibit "B" herein. The requirements and limitations on use of 13 these funds by CHDO's are set forth in CFR 92.300 (e) and (t). 14 1. Proiected Budget: IS The Grant Funds shall be used by NHS to carry out the Program and as projected in the 16 budget attached hereto as Exhibit "B" and by this reference is incorporated herein. 17 2. Schedule for completion of tasks: 18 Upon execution of this Agreement, NHS agrees to provide the services outlined in the 19 body of this Agreement from May 17, 1999 through May 17,2000. The Agency Executive 20 Director is hereby authorized, with the concurrence of the other parties to this Agreement, to 21 extend for a period not to exceed ninety (90) days, in order to complete the Program and other 22 obligations required to be performed herein, 23 C. Other Program Requirements 24 1. NHS must carry out all activities in compliance with all federal laws and regulations 25 described in Subpart H of 24 CFR 92 and outlined hereinafter, except that NHS does not assume -4- 1999-92 the Agency's/City's responsibility for environmental review in Section 92.352 or the 2 intergovernmental review process in Section 92.357. These federal laws and regulations must be 3 complied with as follows: 4 a. Equal0ooortunitv. No person shall be excluded from participation in, be denied the 5 benefits of or be subjected to discrimination under any program or activity funded in 6 whole or in part with HOME funds. In addition, HOME funds must be made available 7 in accordance with all laws and regulations listed in Section 92.350(a). 8 b. Fair Housing. In accordance with the certification made with its housing strategy, 9 each participating jurisdiction must affirmatively further fair housing. Actions 10 described in Section 570.904(c) of Title II ofthe Cranston-Gonzales National II Affordable Housing Act will satisfy this requirement. 12 c, Affirmative Marketing, NHS must adopt affirmative marketing procedures and 13 requirements for HOME-assisted housing projects of five (5) units or more, if 14 applicable. These must include: ]5 (1) Methods for informing the public; ]6 (2) Requirements and practices that NHS must adhere to in order to carry out the 17 City/Agency affirmative marketing procedures and requirements; 18 (3) Procedures used by NHS to inform and solicit applications from persons in the 19 housing market area who are not likely to apply without special outreach; 20 (4) A description of how NHS will assess the success of affirmative marketing 21 actions and what corrective actions will be taken where affirmative marketing 22 requirements are not met. 23 d. Disolacement. Relocation and Acquisition. Consistent with the other goals and 24 objectives of this Subpart H of24 CFR 92, NHS must ensure that it has taken all 25 reasonable steps to minimize the displacement of persons (families and individuals) as -5- , " 1999-92 a result of any project assisted with HOME funds. Moreover, NHS agrees that it will 2 not undertake any project activity that will cause displacement of any homeowner in 3 accordance with Section 92.353, without the approval of the City. 4 e. Conflict ofInterest. NHS will hereby comply with all requirements set forth 5 regarding conflict of interest provisions as they apply in Section 92.356. 6 f. Debarment and Suspension As required in Section 92.357, NHS will comply with all 7 debarment and suspension certifications. 8 g. Flood Insurance. Under the Flood Disaster Protection Act of 1973, HOME funds 9 may not be used with respect to the acquisition or rehabilitation of a project located in 10 an area identified by the Federal Emergency Management Agency (FEMA) as having 11 special flood hazards, unless: 12 (I) The community in which the area is situated is participating in the National 13 Flood Insurance Program, or less than a year has passed since FEMA 14 notification regarding such hazards; and 15 (2) Flood insurance is obtained as a condition of approval of the commitment. If 16 the unit is located in an area identified by FEMA as having special flood 17 hazards, upon notification by the Agency or FEMA, NHS is responsible for 18 assuring that flood insurance under the National Flood Insurance Program is 19 obtained and maintained on each unit assisted with Grant Funds. 20 2 Hold Harmless. NHS agrees to indemnity, defend (upon request by City and 21 Agency), and save harmless the City and Agency, its officers, agents, and employees 22 from any and all liability, expense including defense costs and attorney's fees, and 23 claims and losses whatsoever accruing or resulting to NHS or any and all contractors, 24 subcontractors, materialmen, laborers and any other person, firm, or corporation 25 furnishing or supplying work, services or supplies in connection with the performanc -6- 1999-92 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 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 NHS in the performance ofthis Agreement. Without limiting NHS' s indemnification of City, NHS 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 City and evidence of such programs satisfactory to City shall be delivered to the Executive Director of the Agency or his designee within ten (10) days of the effective date of this Agreement. The costs, salary and expenses of the City Attorney and members of his office in enforcing this Agreement on behalf of the City or Agency shall be considered as "attorney's fees" for the purposes of this paragraph. General Liabilitv: 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/Agency as an additional insured. Such insurance shall require that the City/Agency be notified at least ten (10) days in advance of any change or cancellation of said insurance. D. Request for Disbursement of Grant Funds 19 1. NHS may request Grant funds weekly or monthly, on a reimbursement basis, for 20 eligible costs noted in Exhibit "B", up to maximum of $200,000. The amount of each request 21 will be limited to the amount substantiated in the invoices submitted for costs incurred by NHS 22 to operate and implement the Program. 23 E. Records and Reports 24 1. The City will require that NHS maintain the following records and reports in order to 25 assist the City in meeting its record keeping and reporting requirements: -7- . " 1999-92 (a) Records, including individual project and construction records and a running log 2 demonstrating compliance with the applicable provisions of Section 92.508(2) of the HOME 3 Investment Partnership Program; and 4 (b) Continuing compliance with the HOME Program shall be certified and reported to 5 the City on a quarterly basis to comply with HOME reporting requirements. 6 (c) Any other legal reports and/or records requested by the City to document the 7 provisions of all affordable housing projects or programs. 8 2. NHS shall retain and provide access to all records for the period of three (3) years 9 from the date of this Agreement in accordance with the requirements of Section 92.508(6)(c) and 10 (d). ] ] III. GENERAL PROVISIONS: 12 A. Enforcement of the Agreement 13 1. The City shall have the right, by prior written notice to NHS, to enforce by deed 14 restriction, the affordability requirements in Section 92.254, or any other such violation, as is 15 brought to the attention ofthe City regarding the property(ies) being developed with the use of 16 HOME funds pursuant to this Agreement, if any. In the event of a breach of any condition or 17 provision hereof, the City shall have the right, by prior written notice to NHS, to suspend or 18 terminate this Agreement ifNHS materially fails to comply with any of its terms. 19 2. The City, at its discretion, may terminate this Agreement, in whole or in part, by 20 giving NHS written notice in accordance with 24 CFR 85.44, which provides in part that 21 suspension or termination may occur ifNHS materially fails to comply with any term of this 22 Agreement. 23 B. Monitoring 24 1. The Executive Director of the Agency (the "Agency"), or his designee, shall be 25 responsible for managing the day-to-day operations ofthe HOME program; for monitoring the -8- 1999-92 performance of all entities receiving HOME funds from the City to ensure compliance with the 2 requirements of Subpart K, 24 CFR 92, and for taking appropriate action when performance 3 problems arise. 4 2. Not less than quarterly, the Agency will review the activities ofNHS, to assess 5 compliance with the requirement of Subpart K, 24 CFR 92, as set forth in this Agreement. 6 3. If any real property is developed or housing is financed in whole or in part with 7 HOME funds as described in the Program herein, each review for compliance will include on- 8 site inspection to determine compliance with housing codes and the requirements of Subpart K, 9 24 CFR 92. The results of each review will be included in the City/Agency's performance report 10 required by part 91 of Title II of the Cranston-Gonzales National Affordable Housing Act of 11 1992 and will be made available to the public. 12 C. Notices. Any notice requirement set forth herein shall be deemed satisfied three (3) 13 days after mailing of the notice first-class United States certified mail, postage prepaid, 14 addressed to the appropriate party as follows: 15 CHDO: Neighborhood Housing Services of the Inland Empire, Inc. C/O Executive Director 1390 North "D" Street San Bernardino, CA 92405 16 17 18 Agency: City of San Bernardino Redevelopment Agency C/O Executive Director 201 North "E" Street, Suite 301 San Bernardino, CA 92401 19 20 21 Such addresses may be changed by notice to the other party given in the same manner as 22 provided above. 23 D. Attornev's Fees. In addition to any other remedies provided hereunder or available 24 pursuant to law, if either party brings an action or proceeding to enforce, protect or establish any 25 right or remedy hereunder, the prevailing party shall be entitled to recover from the other party -9. 1999-92 its costs of suit and reasonable attorney's fees. The costs, salary and expenses of the City 2 Attorney and members of his office in enforcing the Agreement on behalf of the City or Agency 3 shall be considered as "attorney's fees" for the purposes of this paragraph. 4 E. No Third Parties Benefited. This Agreement is made and entered into for the sole 5 protection and benefit of the City, its successors and assigns, and NHS, its permitted successors 6 and assigns, and no other person or persons shall have any right of action hereon. 7 F. Citv to File Notices. NHS irrevocably appoints, designates, and authorizes the City as 8 its agent (said agency being coupled with an interest) to file at its option for record any notices 0 9 completion, cessation oflabor, or any other notice that the City deems necessary or desirable to 10 protect its interest hereunder. 11 G. Actions. The City shall have the right to commence, appear in, or defend any action 12 or proceeding purporting to affect the rights, duties, or liabilities of the parties hereunder, or the ]3 disbursement of any proceeds of the City allocation of HOME funds. 14 H. Successors and Assigns. The terms hereof shall be binding upon and inure to the 15 benefit of the successors and assigns of the parties hereto; provided, however, that no assignment 16 ofNHS's rights hereunder shall be made, voluntarily or by operation oflaw, without the prior 17 written consent of the City, and that any such assignment without said consent shall be void. ] 8 1. Construction of Words. Except where the context otherwise requires, words imparting 19 the singular number shall include the plural number and vice versa, words imparting persons 20 shall include firms, associations, partnerships and corporations, and words of either gender shall 2] include the other gender. 22 J. Partial Invaliditv. If any provision of this Agreement shall be declared invalid, illegal, 23 or unenforceable, the validity, legality, and enforceability of the remaining provisions hereof 24 shall not in any way be affected or impaired. 25 -10- 1999-92 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 NHS 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 ifmade in writing. 8 Where this Agreement requires an approval or consent of the City, such approval may be given 9 on behalf of the City by the Executive Director of the Redevelopment Agency or his/her 10 designee who may in his sole discretion submit such approval or consent for consideration by the 11 Mayor and Common Council, if necessary. 12 N. Captions and Headings. Captions and headings in this Agreement are for 13 convenience of reference only, and are not to be considered in construing the Agreement. 14 O. Entire Agreement. This Agreement shall be executed in three (3) duplicate originals, 15 each of which is deemed to be an original. This Agreement includes 12 pages and Exhibit A and 16 B which constitute the entire understanding and agreement of the parties. 17 This Agreement integrates all of the terms and conditions mentioned herein or incidental 18 hereto, and supersedes all negotiations or previous agreements between the parties. 19 P. Authoritv. The individuals executing this Agreement and the instruments referenced 20 herein on behalf ofNHS each represent and warrant that they have the legal power, right and 21 actual authority to bind NHS to the terms and conditions hereof and thereof. 22 fIll 23 fIll 24 fIll 25 fIll -11- , . , 1999-92 IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed 2 the day and year first above written. 3 4 CITY OF SAN BERNARDINO 5 6 7 8 9 10 11 12 13 14 15 16 Approved as to Form and Legal Content: 17 James F. Penman, City Attorney 18 CHDO NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE, INC., A California Nonprofit Corporation .......-LJ~- By: Jack Hill Printed Name President Title ~If~ Edward F. Ml~'" Printed Name Executive Director Title ~,)f]<<<fcrr 19 Leonard Davenport Pn nted Name )-.~ 20 Board Vice President Title 21 22 23 P:\CDBG Dept\Maggie\Misc\HOME AGREEMENT -NHS Mobilehome.doc 24 25 -12- \ ' ... . EXHIBIT "A" "","'/.. /k." '. ~. Neighborhood Housing Services of the Inland Empire, Inc. JACK L HILL . President. c."airman 01 ths Boam EDW ARD F. MDNCRIE executive Director I I 1 NHSIE is a non-profit 501 (c)(3) housing and neighborhood development corporation established in 1982. The corporation's mission is to revitalize neighborhoods through housing rehabilitation, down payment assistance. homebuyer education, and neighborhood fix-up/c1ean-up programs. NHSIE is a NeighborWorks@ Organization chartered by the congressionally established Neighborhood Reinvestment Corporation. The organization's prime target area is comprised of a number of communities in the Inland Empire of Southern California. which includes communities in both San Bernardino and Riverside Counties. NHSIE developed the HomeStart Down Payment Assistance Program, designed to help qualified low- and moderate-income homebuyers. HomeStart is funded through contributions from private enterprise. HomeStart is available through a variety of mortgage companies and builders in selected communities throughout the United States. The corporation also administers its Gimme-Five Down Payment Assistance Grant Program funded through the Federal Home Loan Bank and through other public sources. The program provides a grant of up to five thousand dollars to low- and very-low income homebuyers. Qualified buyers may receive additional support in the form of a sHent second loan. NHSIE administers down payment assistance programs for the cities of Redlands, Rancho Cucamonga, and Highland. These programs are funded primarily through the jurisdictions' Re-development agencies. Generally, they target families with incomes between 100% and 115% of the area median income. Other NHSIE activities include the acquisition, rehabilitation, and resale of FHA-foreclosed single-family homes, the acquisition and rehabilitation of multi- family units in blighted, low-income neighborhoods, and coordination of residents and volunteers around neighborhood improvement projects. NHSIE has established the HomeOwnership Center a 'school for homeownership.' The purpose of the center is to support the corporation's commitment to Full-Cycle Lending. The two thQq~and square foot facility is located adjacent to NHSIE's corporate offices in San Bemardino. Among the its features are classrooms for group meetings, a counseling h')om for individual credit-counseling sessions, and a resource library with training materials, periodicals, a'nd videos on issues of credit clean-up and debt reduction, home ownership and home maintenance. The center serves as a central location for pre- and post-purchase home buyer education and down payment a~sistance. HomeOwnership Center participants attend at least eight hours of . ~omebuyer education classes prior to loan closing. The center's staff and volunteer Instructors from the lender community conduct formal homebuyer education classes. Staff also coordinate with a variety of first mortgage lenders in processing down payment assistance grant and loan documents, and guide families through the closing process. (909) 884-6891 "Fax (909) 884-6893 "1390 North '0' St. "San Bernardino, CA 92405 "e.... ~ Page 1 U....._LL...;JJ/_ J~_. 1999"-92 , . . . ..../. '/ '2:..... / ~:~:" ~~f~ft.~ EXHIBIT "A" Neighborhood Housing Services of the Inland Empire, Inc, JACK L. HILL Presu:!ent Chairman of the' SDard EDWAAD F. "'ONCAlE Executive Director Programs and Products NHSlE provides down payment assistance to qualified low- and moderate- income homebuyers through its HomeStart Down Payment Assistance Program, which is funded through contributions from the builder and lender industries. The organization also administers down payment assistance programs for the cities of Redlands. Highland. and Rancho Cucamonga. In 1998, NHSIE provided 256 HomeStart grants and silent second loans totaling $1,260,570 and leveraging $30,267,058 in first mortgage loans. NHSIE closed 41 city-funded grants totaling $315,099 and leveraging $4,225,600 in first mortgage loans. During the same period. the organization's HomeOwnership Training Center provided 24 classes and educated or counseled 356 participants. In addition, NHSIE has recently received approval for a grant in the amount of $500.000 from the Federal Home Loan Bank Affordable Housing Program. The funds will be used exclusively to provide down payment grants to low- and very low-income homebuyers residing in the Inland Empire. First-time home buyers will receive up to five-thousand dollars toward the purchase of their home. NHSIE is an approved contractor under the City of San Bernardino's Acquisition, Rehabilitation, and Resale (ARR) Program. As an ARR contractor, the organization acquires an average of two FHA-foreclosed properties per month, fully rehabilitates these, and sells them to qualified first-time homebuyers. NHSIEalso operates the city's Mobile Home Repair and Owner-Occupied Housing Rehabilitation Programs. The corporation has also acquired, rehabilitated, and now owns and manages (through a property management company) two hundred fifteen units of multi-family housing located in the City of San Bernardino. . . '. - ,',",.. ~, . (909) 884-6891 "Fax (909) 884.6893 "1390 North '0' SI. "San Bernardino, CA 92405 ^N ~.L_ Page 2 ,4119 nu'_ ,,":' 1999-92 EXHIBIT "B" I. Scone of Work (Descrintion ofthe Handvworker Mobile Home Grant Prol!:ram): A. NHS will use the Grant funds to administer, implement and manage a Handyworker Program which provides grants of up to $5,000 per unit, for owner-occupied single family mobile home units located within the City of San Bernardino (the "Program"): The Program consists of as follows: 1. NHS will advertise the Program if necessary, accept and process grant applications on a first come, first serve basis and proceed to determine the eligibility of the homeowner for the Program. Specifically, only homeowners who have owned and live in their unit for not less than I year, and meet the income guidelines shall be eligible to participate in the Program. Furthermore, only those homeowners who have been cited by the City's Inspection Services Division, under Title 25 of Mobile Home Park Act (the "Act"), or any other applicable legislation or local codes, shall be eligible to participate under the Handyworker Program. This requirement will insure that only those owners requiring work under the Act, or other laws, are assisted prior to all others, provided that the homeowner meets all other Program criteria. 2. NHS shall insure that all owners participating in the Program provide proof of ownership and occupancy evidencing that the owner has owned and resided in the unit for not less than one year from the date of Grant application. 3. NHS shall insure all owners participating in the Program meet the income guidelines; specifically, any homeowner receiving assistance under the Program must have an annual income that does not exceed 60% of median income for San Bernardino County. The City shall provide the income guidelines to NHS annually. Furthermore, NHS shall give priority to senior citizens. 4. NHS will work with qualified homeowners to determine the scope of work of each contract in relation to the maximum grant per unit; assist each owner to establish priorities in relation to health and safety standards; 5. NHS will complete costs estimates on the scope of work for each unit and insure that the homeowner approves the scope of work prior to undertaking the improvements, and to obtain bids from sub-contractors, if necessary; and to complete and process the grant documents; 6. NHS will complete and or monitor the completion of the approved scope of work in concert with the City's Inspection Services Division. ..or .' . . 1999-92 7. NHS shall insure, prior to commencing any work on any unit, that an inspection report from the City's Inspection Services Division has been conducted so that NHS insures that the necessary Act violations are addressed and remedied prior to undertaking any other type of improvements on each unit. 8. Once the work has been identified, NHS shall proceed with all due diligence to insure that the work is performed in a good workmanship manner. NHS can either undertake the improvements directly, or NHS may sub-contract the work to be performed on the respective unit. All work performed under the Program shall be inspected by the City's Inspection Services Inspector to insure compliance with the Act, or any other local, state or federal law. 9. NHS shall process all payments to vendors and subcontractors. 10. NHS shall maintain a record of each grant transaction as determined appropriate by the City and submit timely written reports as provided under the Agreement. This Scope of Work is not intended to be all in-conclusive, rather, it is intended to serve as a general guide and set forth basic parameters to assist NHS in the implementation, administration and management of the Program. II. Schedule of Comoensation A. For the administration, implementation and management of the Program, NHS shall be entitled to the following compensation: 1. A processing fee of one hundred dollars ($100) per grant application. 2. If NHS performs the scope of work on a unit, NHS shall be entitled to compensation for the labor associated with the approved scope of work, in the amount of fifty dollars ($50) per billing hour. A formula for determining billing hours shall be agreed upon the parties within thirty days after the approval date of the Agreement by the Executive Director of the Agency, or his designee, and NHS, Executive Director. 3. If all or a portion of the homeowner's work plan/scope of work is to be completed by subcontractor, other than NHS, then NHS may charge a fifteen percent (15%) fee of any sub-contract amount to supervise and monitor the work thereunder. 4. In no event, shall the amount expended under this Agreement, exceed the total amount of the Grant amount to NHS of $200,000. P:\CDBG Dept\Maggie\Misc\scope ofwork-NHS.doc