HomeMy WebLinkAboutR39-Economic Development Agency
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ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO -- '-
FROM:
Maggie Pacheco
Deputy Director
SUBJECT:
HOMEBUYER EDUCATION PROGRAM
- NEIGHBORHOOD HOUSING
SERVICES OF THE INLAND EMPIRE,
INC. (NHS) - AMENDMENT TO
CONTRACT
ORIGINAL
DATE:
January 12,2004
SynoDsis ofPreyious Commission/CounciVCommittee Action(s):
On November 20, 2003, Redevelopment Committee Members Anderson, Suarez and Estrada unanimously voted to
recommend that the Mayor and Common Council consider this action for approval.
Recommended Motion(s):
MOTION:
(Mayor and Common Council)
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE AMENDMENT
NO, I TO THE HOME AGREEMENT BY AND BETWEEN THE CITY OF SAN BERNARDINO
("CITY") AND NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE, INC. (NHS)
- HOMEBUYER EDUCATION PROGRAM
Contact Person(s):
Project Area(s)
Maggie Pacheco
Phonc:
(909) 663-1044
All
N/A
Ward(s):
Supporting Data Attached: 0 Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 Letters
SIGNATURE:
Source:
FUNDING REQUIREMENTS Amount: $ $240,000
Commission/Couucil Notes:
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P:\Agendas\CommDev Commission\CDC 2004\04-01-20NHS Homebuyer Educ SRdoc COMMISSION MEETING AGENDA
Meeting Date: 01120/2004
Ageuda Item Number: ni-
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ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
Homebuver Education Prol!ram -
Neil!hborhood Housinl! Services ofthe Inland Empire. Inc. (NHS) -
Amendment to Contract
BACKGROUND/CURRENT ISSUE:
State and local governments may use federal HOME funds to carry out multi-year housing strategies
through acquisition, rehabilitation, new construction of housing, tenant-based rental assistance, and
activities such as homebuyer education. The intent of the HOME program is to expand the supply of
decent, safe, sanitary and affordable housing. Typically states and local governments, as in the
City's/Agency's case, provide affordable housing by working in concert with experienced non-profit
housing organizations.
In 1998, the City/Agency and Neighborhood Housing Services of the Inland Empire, Inc. (NHS)
established a partnership for the provision of housing services to the community. These services have
included, but are not limited to, administration of the Mobile Home Handyworker Program, the
Owner Occupied Single-Family Beautification Grant Program, development of the first Youthbuild
home on Magnolia A venue and administration of the City/Agency Homebuyer Education Program.
NHS's Homebuyer Education Program is designed to educate first-time homebuyers who are in the
process of purchasing their first home. In addition, the program helps to promote exceptional
homeowners that will maintain their property. Specifically, NHS provides sixteen hours of
instruction to potential homeowners. The first eight hours, or first session, focuses on "Pre-
Purchase." Topics covered include The Real Estate Transaction. This explains the purchase contract,
title reports, escrow disclosures and escrow fees. The course outline will also cover: Home
Inspections, Home Maintenance and Preventative Care; Homeowner's Insurance; and Foreclosure
Prevention. The second session (eight hours) focuses on "Financial Fitness." This component assists
the future homeowners by addressing credit issues, budgeting, savings and banking, understanding of
credit reports and the mortgage process. The Financial Fitness component is designed to promote
financial management and planning skills that are needed to make the most of a family's income,
savings and assets in preparation for home ownership.
NHS has been providing homebuyer education for prospective City homebuyers for the past three (3)
years under contract with the City/Agency. During this timeframe, NHS reports that not less than
2,337 households benefited from the education program of which approximately 699 families
purchased their first home in the City. The HOME Agreement between the City and NHS expires on
January 22, 2004.
Staff is recommending that the existing HOME Agreement with NHS be renewed for an additional
three-year period (2004-2007), subject to the City receiving its annual allocation of federal HOME
funds for a total amount of $240,000. NHS will continue to offer the program description noted
above and as set forth in the attached amendment.
P:\Agendas\Comm Dev Commissioll\CDC 2004\04-01-20 NHS Homebuyer Educ SR.doc
COMMISSION MEETING AGENDA
Meeting Date: 011020/2004
Agenda Item Number: t:11
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Economic Development Agency Staff Report
NHS Homebuyer Education Program
Page 2
ENVIRONMENTAL IMPACT:
This activity is exempt under the National Environmental Policy Act (NEPA) and California
Environmental Quality Act (CEQA).
FISCAL IMPACT:
Funds for this Agreement are available in the Economic Development Agency's 2003-2004 HOME
Federal Grant budget in the amount of $80,000, and will be budgeted yearly thereafter for the
remaining term of the Agreement for a total of $240,000.
RECOMMENDATION:
That the Mayor and Common Council adopt the attached Resolution.
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P:\Agendas\Comm De" Commission\CDC 2004\04-01.20 NHS Homebuyer Educ SR.do<:
COMMISSION MEETING AGENDA
Meeting Date: 01/20/2004
Agenda Item Number: -Ie '3 q
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RESOLUTION~ (QL 1~ ~
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE
MAYOR TO EXECUTE AMENDMENT NO. 1 TO THE HOME
AGREEMENT BY AND BETWEEN THE CITY OF SAN BERNARDINO
("CITY") AND NEIGHBORHOOD HOUSING SERVICES OF THE
INLAND EMPIRE, INC. (NHS) - HOME BUYER EDUCATION
PROGRAM
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WHEREAS, the City has received formula HOME Investment Partnership allocation for
Fiscal Years 2003-2004 and anticipates receiving said funds yearly thereafter, from the U.S.
Department of Housing and Urban Development (HUD) to carry out eligible activities in
accordance with federal program requirements at 24 CFR 92 (the "Home buyer Education
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Program"), and the Redevelopment Agency of the City of San Bernardino ("Agency") is
designated by the Mayor and Common Council to administer such Hornebuyer Education
Program on behalf of the City; and
WHEREAS, in an effort to facilitate these activities, the City entered into a HOME
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Agreement (2000-2003 HOME Funds) (the "Agreement") with Neighborhood Housing Services
of the Inland Empire, Inc., a California nonprofit corporation (NHS) to carry out the Homebuyer
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Education Program; and
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WHEREAS, the City and NHS desire to amend the Agreement to change the scope of
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services, compensation and the term of the Agreement.
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NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED
BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS
FOLLOWS:
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Section I.
The Mayor and Common Council hereby approve Amendment No. I to
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the Agreement, a copy of which is attached hereto as Exhibit "A" and incorporated herein by
reference.
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P:\Aaen4.s\RelOlutions\Relolullofts\200<C\lU_OI_20 NHS HOME Amd No I MCC RKO.doc
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Section 2.
The Mayor and/or her designee is hereby authorized to execute
Amendment No.1 to that Agreement dated January 22, 2001, by and between the City of San
Bernardino and NHS in the amount of $240,000 on behalf of the City in substantially the form
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attached hereto, together with such nonsubstantive modifications as deemed necessary and as
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approved by the Mayor, or her designee, with the concurrence of the City Attorney.
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Section 3.
This Resolution shall take effect upon its adoption and execution in the
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manner as required by the City Charter.
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE
MAYOR TO EXECUTE AMENDMENT NO. 1 TO THE HOME
AGREEMENT BY AND BETWEEN THE CITY OF SAN BERNARDINO
("CITY") AND NEIGHBORHOOD HOUSING SERVICES OF THE
INLAND EMPIRE, INC. (NHS) - HOME BUYER EDUCATION
PROGRAM
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I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
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Common Council of the City of San Bernardino at a
meeting thereof, held on the
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day of
, 2004, by the following vote to wit:
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Council Members:
Navs
Abstain
Absent
Aves
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ESTRADA
LONGVILLE
MCGII\'NIS
DERRY
SUAREZ
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ANDERSON
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MC CAMMACK
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Rachel G. Clark, City Clerk
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The foregoing resolution is hereby approved this
day of
,2004.
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Judith Valles, Mayor
City of San Bernardino
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Approved as to form and Legal Content:
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By:
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P;\AlItndu\Ruoluliona\Ruolullonl\20l\.4\04-01-20 NHS HOME Amd No I !\Ice Ruo.doc
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AMENDMENT NO.1
HOME AGREEMENT
(2000-2003 HOME Funds)
(Neighborhood Housing Services of the Inland Empire, Inc.)
THIS AMENDMENT NO. I to the HOME Agreement dated January 22, 2001
("Agreement") referred to as "Amendment," is made and entered into January 20, 2004 by and
between the City of San Bernardino, a municipal corporation (the "City") and Neighborhood
Housing Services of the Inland Empire, Inc., a California nonprofit corporation (referred to as
either NHS or NHSIE). The City and NHS agree as follows:
RECITALS
WHEREAS, the City has received formula HOME Investment Partnership allocation for
Fiscal Years 2003-2004 and anticipates receiving said funds yearly thereafter, from the U.S.
Department of Housing and Urban Development (HUD) to carry out eligible activities in
accordance with federal program requirements at 24 CFR 92 (the "Homebuyer Education
Program"), and the Redevelopment Agency of the City of San Bernardino ("Agency") is
designated by the City to administer such Homebuyer Education Program on behalf of the City;
and
WHEREAS, in an effort to facilitate these activities, the City entered into a HOME
Agreement (2000-2003 HOME Funds) (the "Agreement") with Neighborhood Housing Services
of the Inland Empire, Inc. (NHS), a California nonprofit corporation to carry out the Hornebuyer
Education Program; and
WHEREAS, the City and NHS desire to amend the Agreement to change certain
provisions of the Agreement as noted below.
NOW, THEREFORE, in consideration of the mutual covenants herein set forth and the
mutual benefits to be derived therefrom, the parties agree to modify the Agreement in the
following areas only:
II. SCOPE OF SERVICES AND COMPENSATION
A. Amount of Grant: Pursuant to the conditions being met in Section I. of the
Agreement, the City agrees to allocate the sum of Eighty Thousand Dollars ($80,000) (the
"Grant") annually for three (3) fiscal years: 2004-2005, 2005-2006 and 2006-2007, subject to
federal HOME funds being available to the City for the Homebuyer Education Program, for a
total compensation of $240,000.
EXHIBIT "A"
P IClencal Ser\'lce~ Depf,,MargirCI\Agreemcnls.Amc:ndmenls""grmIS-Amc:nd 2004\(}4-01-20 NHS HOME Agr Amd I doe
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B. Use of Grant Funds: The Grant funds will be used to pay the operating
expenses of NHS, including but not limited to, the costs of salaries, wages, and other employee
compensation and benefits; employee education, training; rent; utilities; taxes; insurance;
equipment; materials and supplies and more specifically, to implement and administer the
Homebuyer Education Program depicted in Exhibit "A."
I. Tasks to be Performed:
NHS shall administer, manage and support the Homebuyer Education
Program for low- and moderate-income households through projects that include, but are not
limited to: education and assistance to eligible homebuyers, marketing and outreach services of
homebuyer programs and the preservation of low- and moderate-income housing.
2. Schedule for Completion of TaskslTerm of Agreement:
Upon execution of this Amendment, NHS agrees to provide the services
outlined in the body of this Amendment commencing on January 22, 2004 through January 2],
2007, subject to and conditioned upon the City receiving its annual allocation of federal HOME
funds for the term of this Agreement. Should the City no longer receive federal HOME funds,
particularly during the term of this Amendment then this Amendment shall terminate and the
parties shall have no further obligation to each other relative to the Agreement and the
Amendment.
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D.
Request for Disbursement of Funds
]. NHS may request grant funds monthly (not to exceed $6,666) on a
reimbursement basis, for eligible costs, on a pro rata basis, up to a maximum of $80,000 per year
for the term of this Amendment. The amount of each request will be limited to the amount
substantiated in the invoices submitted for direct costs incurred for the operation of the
Homebuyer Education Program. .
All other terms of the Agreement shall remain in full force and effect.
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P\CICIlClIl SCr.'ICCS Dcpl'Mirgllrcl\Agrcemcnls.Amcndmcnl~\^gnnls.Amcnd 2004,04.0] .20 NHS HOME Agr Amd I doc
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IN WITNESS WHEREOF, the parties have caused this Amendment No. 1 to the
Agreement to be executed as of the day and year first written above.
CITY OF SAN BERNARDINO
NEIGHBORHOOD HOUSING SERVICES OF
THE INLAND EMPIRE, INC.,
a California nonprofit corporation
By:
Judith Valles, Mayor
By:
Its:
ATTEST:
Rachel Clark, City Clerk
APPROVED AS TO FORM:
EXHIBIT "A"
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P\Clen"ll Servlce'> Depl\Margillel\^gfeements.Amendmenls\Agl1'Tllh~mend 2004\04-01.20 NHS HOME Agr Amd I_doc
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EXHIBIT "A"
e I. SCOPE OF WORK
A. To provide homebuyer education classes for 227 households per year as described and
detailed in Section 2 belo\\', and to provide homebuyer education classes to homebuyers
referred by the Economic Development Agency.
B. To conduct off-site marketing and outreach of NHS's and Agency's Homebuyer's
Assistance Programs. NHS will provide outreach and marketing to both public and
private sector entities. A total of nine (9) businesses and/or organizations per year will
be targeted.
C. To provide City/Agency with monthly reports detailing participants and families
completing the Homebuyer Education Program, and the number of families purchasing a
home within the City of San Bernardino.
D. To fund two loans per month utilizing the Agency's Homebuyer's Assistance Program
and NHS's "Gimme 10" Program, or other programs available to qualified first time
homebuyers to buy a home in the City of San Bernardino.
2. HOME BUYER EDUCATION
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A. Real Estate, Title and Escrow
. Explaining Real Estate Purchase
Contract
. Contingencies and Counteroffers
. Title Report
. Escrow Disclosures
. Escrow Fees
B. Home Inspections
. What is a Horne Inspection?
. Difference between an Inspection
Report and an Appraisal
. Selecting a Home Inspector
. Addressing Health and Safety
Issues
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C. Home Maintenance and Preventative Care
. The Value of Horne Maintenance
. Basic Tools and Equipment for
Maintenance
. Heat, Venting and Air
Conditioning
. Plumbing System, Water
Supply, Drains
.. Home Cleaning Methods
D. Homeowner's Insurance
. Different Types of Insurance Companies
. Different Types of Insurance Policies
. Coverage Needed Before Closing: Basic
Five
. Additional Coverage: Medical, Liability,
Homeowner's'Policy, Earthquake and Flood
Insurance, etc.
E. Foreclosure Prevention
. Avoiding Late Payments
. Responding to Collection Letters
. Repayment Plans, Forbearances and Loan
Modifications
. Alternatives to Foreclosure
F. Fair Housing and Predatory Lending
. Predatory Lending
. Fair Housing: Know Your Rights
G. Community Empowerment and Civic
Participation
. Getting Involved in Your Community
. Community Involvement Activities
. Neighborhood Watch Programs
P,CICllcal Ser"\llCCS Depl\.\hrgarellAgrccmenli-AmcndmenlilAgrl'ms.Amend 2004,04.01.20 NHS HOME Agr Arne! Icloc
EXHIBIT "A"
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CITY OF SAN BERNARDINO
Interoffice Memorandum
CITY CLERK'S OFFICE
Records and Information Management (RIM) Program
DATE:
January 27,2004
TO:
Margaret Parker, Secretary
FROM:
Michelle Taylor, Senior Secretary
RE:
Transmitting Documents for Signatlire - Resolution 2004-24
At the Mayor and Common Council meeting of January 20, 2004, the City of San Bernardino
adopted Resolution 2004-24 - Resolution approving and authorizing the Mayor to execute
Amendment No. 1 to the HOME Agreement by and between the City of San Bernardino and
Neighborhood Housing Services of the Inland Empire, Inc., (NHS) - Homebuyer Education
Program.
Attached is one (I) original agreement. Please obtain signatures in the appropriate location and
return the original agreement to the City Clerk's Office as soon as possible, to my attention.
If you have any questions, please do not hesitate to contact me at ext. 3206. Thank you.
Michelle Taylor
Senior Secretary
I hereby acknowledge receipt of the above mentioned documents.
Signed:
Date:
Please sign and return
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CITY OF SAN BERNARDINO
Interoffice Memorandum
CITY CLERK'S OFFICE
Records and Information Management (RIM) Program
DATE:
January 27,2004
TO:
Margaret Parker, Secretary
FROM:
Michelle Taylor, Senior Secretary
RE:
Transmitting Documents for Signature - Resolution 2004-24
At the Mayor and Common Council meeting of January 20, 2004, the City of San Bernardino
adopted Resolution 2004-24 - Resolution approving and authorizing the Mayor to execute
Amendment No. 1 to the HOME Agreement by and between the City of San Bernardino and
Neighborhood Housing Services of the Inland Empire, Inc., (NHS) - Homebuyer Education
Program.
Attached is one (1) original agreement. Please obtain signatures in the appropriate location and
return the original agreement to the City Clerk's Office as soon as possible, to my attention.
If you have any questions, please do not hesitate to contact me at ext. 3206. Thank you.
Michelle Taylor
Senior Secretary
I hereby acknowledge receipt of the above mentioned documents.
Signed: '7f~
Date:
Please sign and return