HomeMy WebLinkAboutR34-Economic Development Agency ORIGINAL
ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
FROM: Maggie Pacheco SUBJECT: HOME Grant Agreement - Mary's
Interim Executive Director Mercy Center, Inc. for Veronica's
Home Transitional Housing Project
DATE: December 12,2005
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Synopsis of Previous Commission/Council/Committee Action(s):
On September 6,2005,Redevelopment Committee Members Estrada and Longville unanimously voted to recommend that
the Mayor and Common Council and Community Development Commission consider this action for approval.
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Recommended Motion(s):
Open/Close Public Hearing
(Mayor and Common Council)
Motion: That the Mayor and Common Council of the City of San Bernardino approve an Amendment to the 2005-2010
Five Year Consolidated Plan and the 2005-2006 Annual Action Plan authorizing$800,000 of HOME Program
Funds to Mary's Mercy Center, Inc.
(Community Development Commission)
Resolution of the Community Development Commission of the City of San Bernardino approving and
authorizing the Interim Executive Director of the Redevelopment Agency of the City of San Bernardino
("Agency")to execute the HOME Grant Agreement by and between the Agency and Mary's Mercy Center,
Inc.,a non-profit public benefit corporation
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Contact Person(s): Maggie Pacheco Phone: (909)663-1044
Project Area(s) IVDA Redevelopment Project Area Ward(s): 1St
Supporting Data Attached: 0 Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) ❑Map(s) ❑Letters
FUNDING REQUIREMENTS Amount: $ 800,000 Source: 2001-2005 HOME Funds
Budget Authority: 2005 EDA Budget
SIGNATURE: Z�;
MPa agggieec ,Interim Executive Director Barbara Lindseth,Director Admi .Services
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PAAgendas\Comm Dev Commission\CDC 2005\05-12-19 Mary's-Veronicas Transitional Housing SR.doc COMMISSION MEETING AGENDA
Meeting Date: 12/19/2005
3t.
Agenda Item Number:
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
HOME GRANT AGREEMENT -MARY'S MERCY CENTER,INC. FOR
VERONICA'S HOME TRANSITIONAL HOUSING PROJECT
BACKGROUND:
At the May 16, 2005 Mayor and Common Council public hearing, Mary's Mercy Center, Inc.
("Mary's") was allocated $300,000 of Federal HOME funds for the construction of a Men's
Transitional Housing Shelter, proposed to be built at their present site.
On August 25, 2005, Mary's Executive Director sent a letter to Agency Staff, requesting that the
$300,000 be transferred from the proposed Men's Transitional Housing Shelter Project to help
with the funding shortfall for the expansion of Veronica's Home of Mercy and to assist in the
acquisition of property adjacent to Veronica's Home as described below.
CURRENT ISSUE:
Transitional Facility
In 2004, Mary's was awarded a HUD grant in the amount of$1,070,927 for the development,
expansion, and operation of Veronica's Home of Mercy, an existing long-term transitional
facility for pregnant adult women and their children. Certain portions of the HUD Grant
($770,927) are required to be used as operations after the completion of the construction.
$300,000 of the allocated HUD grant may be used for construction purposes relative to the
expansion project; however, Mary's is responsible for securing the remaining funds for the
completion of the construction. Veronica's Home, located at 1476 West 6'h Street, is a 40-bed
facility that can accommodate 13 women and up to 27 children. Due to the high demand for this
type of facility and their associated programs, Mary's Board of Directors began the planning and
fundraising for the expansion of the existing facility. An architect was hired and renderings for
the proposed expansion were created. The expanded facility will provide a 20-unit multi-family
affordable transitional rental housing facility for 60-70 beds for pregnant women and their
children.
Due to the length of time that it has taken Mary's to raise additional capital, and seek additional
grant funds, the original construction costs have increased from $1.4 million to $2 million
dollars, creating a $600,000 shortfall. The financial status of the expansion project is as follows:
i) Fund Raising - $401,500; ii) Weingart Foundation - $100,000; iii) HUD Grant - $300,000; iv)
HomeAide Inland Empire - $600,000 for a total of$1,401,500 and a shortfall of$ 600,000.
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P:Wgendas\Comm Dev Commission\CDC 2005\05-12-19 Mary's-Veronica's Transitional Housing SR.doc COMMISSION MEETING AGENDA
Meeting Date: 12/19/2005
n
J�.
Agenda Item Number: _
Economic Development Agency Staff Report
Mary's Mercy Center—Veronica's Transitional Housing
Page 2
When this item went before the Redevelopment Committee back in September 2005, the
construction budget was estimated at $2,000,000. Since that time, the Architect estimates that an
p additional $425,500 of construction costs will be needed. Mary's will continue their fund raising
efforts and California Endowment of the Arts has stated that the organization will allocate funds
to the project.
Transitional Re-Entry Home
In addition to the $600,000 needed for the expansion, Mary's is requestinE the Agency's
assistance for the acquisition of a vacant single family home located at 1490 6` Street, located
adjacent to Veronica's Home of Mercy ("Property"). The Property will be utilized as a
Transitional Re-Entry Home for women who have finished their program at Veronica's Home of
Mercy, but still need more time to finish school or training or just need more time to accumulate
money for housing. Women who are placed at these re-entry homes show a strong determination
to set their lives and their children's lives in a straight motion. Mary's has another re-entry home
located in the north end of San Bernardino, near Cal-State that was also assisted by the Agency.
Although the Property has not been listed for sale, the Executive Director of Mary's has spoken
to the executors of the deceased owner and they have expressed an interest in selling to Mary's.
Recent survey of "comps" in the area show sales in the range of $200,000 to $250,000.
However, per the HOME Grant Agreement, Mary's will have the option of finding another three
(3) bedroom home in the City in the event that the 6th Street property is not available. Mary's is
able to provide $50,000 for the acquisition of the Property and is asking that the Agency make up
the difference between the actual sales price and Mary's contribution, or approximately
$200,000.
Consequently, the total amount of requested HOME is $800,000 for both projects. In accordance
with Section 4.1 of the proposed HOME Grant Agreement, the disbursement of the $800,000 of
HOME funds to Mary's will be in the form of four (4) installments as follows: i) $200,000-for
the acquisition of the Transitional Re-Entry Home; ii) $200,000-upon certification by the
architect and general contractor that 50% of improvements have been constructed; iii) $200,000-
upon certification by the architect and general contractor that 75% of improvements have been
completed; iv) $200,000-upon certification by the architect and general contractor that the
improvements have been completed and the City has issued a Certificate of Occupancy of the
completed improvements.
Pursuant to the proposed HOME Regulatory Agreement between the Agency and Mary's, the
Agency will obtain affordability and maintenance covenants for a period of not less than 55
years. Only those tenants whose income does not exceed 80% of Area Median Income (AMI)
will be allowed residency at the new expansion site or Transitional Re-Entry Home. In addition,
Mary's will be required to certify the tenants' eligibility for residency on an annual basis.
Moreover, if and when Mary's is ready to develop the Men's Transitional Housing Project,
which is not expected to occur for another 3-4 years, they can return to the Agency and request
financial assistance at that time.
PAAgendas\Comm Dev Commission\CDC 2005\05-12-19 Mary's-Veronica's Transitional Housing SR.doc COMMISSION MEETING AGENDA
Meeting Date: 12/19/2005
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Agenda Item Number: KJ
Economic Development Agency Staff Report
Mary's Mercy Center—Veronica's Transitional Housing
Page 3
ENVIRONMENTAL IMPACT:
The Planning Commission has reviewed the Initial Study related to the Transitional Housing
Project and the City made a finding that the Project is exempt from the California Environmental
Quality Act (CEQA) for the project. The Agency is relying on this action for purposes of
satisfying CEQA and NEPA and the appropriate Notices will be filed.
FISCAL IMPACT:
A total of$800,000 of HOME Funds are currently available in the Agency's 2001/2005 HOME
Program Fund.
RECOMMENDATION:
That the Mayor and Common Council adopt the Motion and Community Development
Commission adopt the attached Resolution.
Ma ie Pacheco,Interim Executive Director
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PAAgendas\Comm Dev Commission\CDC 2005\05-12-19 Mary's-Veronica's Transitional Housing SR.doc COMMISSION MEETING AGENDA
Meeting Date: 12/19/2005
Agenda Item Number: J
RESOLUTION NO.
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO APPROVING AND
AUTHORIZING THE INTERIM EXECUTIVE DIRECTOR OF THE
4 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
("AGENCY") TO EXECUTE THE HOME GRANT AGREEMENT BY
AND BETWEEN THE AGENCY AND MARY'S MERCY CENTER, INC.,
A NON-PROFIT PUBLIC BENEFIT CORPORATION
6
7 WHEREAS, the City of San Bernardino (the "City") is an entitlement jurisdiction an
8 annually receives certain federal funds under the HOME Investment Partnership Act (the
9 "HOME Program") from the United States Department of Housing and Urban Developmen
to ("HUD") in order to carry out eligible affordable housing activities within the City in accordance
11 with the HOME Program Regulations set forth in Title 24 Code of Federal Regulations Part 92
12 et seq. (24 CFR Part 92); and
1; WHEREAS, the City has designated and authorized the Agency to administer an
Q14 implement the HOME Program of the City; and
1 WHEREAS, HOME Program funds of the City may be used by the Agency for locally
16 based nonprofit housing entities to carry out affordable housing activities in compliance with th
17 HOME Program Regulations, including without limitation "transitional housing" development
I8 projects as this term is defined at 24 CFR Part 92.2; and
19 WHEREAS, the Grantee is a locally certified and/or approved and experienced nonprofi
housing organization, and the Grantee has obtained HUD Grant No. CAI 613209-004 (the "HUD
20 _
Transitional Housing Grant") in the proposed sum of One Million Seventy Thousand Nin
21
Hundred Twenty Seven Dollars ($1,070,927) for the development and operation of a transitions
22
housing facility to be called Veronica's Home of Mercy (the "Project"); and
23
WHEREAS, the Grantee has proposed that the Agency participate with the Grantee in the
24
funding of the acquisition and construction of transitional housing facilities such as the Project
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I and the hereinafter defined Transitional Re-entry Home which are eligible under the HOME
2 Program; and
3 WHEREAS, the Agency deems that the activities to be undertaken by the Grantee herein
4 are consistent with and supportive of the HOME Program Regulations and that the financial
assistance of the Agency is necessary and appropriate to initiate the transitional housin
6 activities of the Grantee as set forth herein; and
WHEREAS, the Agency deems it desirable to enter into this HOME Grant Agreemen
8 xvith the Grantee in order to provide HOME Program funds of the City for the acquisition an
9 development of the transitional housing facilities to be operated by the Grantee and for the
10
provision of affordable rental housing to low-income persons and families in accordance with the
HOME Program guidelines; and
11
WHEREAS, the Agency desires to provide the sum of Eight Hundred Thousand Dollar
12
(5800,000) in HOME Program Funds of the City as a grant to the Grantee as the "Agency
13
HOME Grant Contribution", subject to the terms and conditions of this HOME Gran
14
Agreement.
15
NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE
16
CITY OF SALT BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS
17
FOLLOWS:
1s '
Section 1. The Agency finds and determines that the development of the Project an
19 acquisition of Property as described in the HOME Grant Agreement is within the scope, term
20 and provisions of the Redevelopment Plan for the Project Area, is consistent with the Agency'
21 Housing Implementation Plan, City's Consolidated Plan and will help eliminate blighting
22 conditions in the Project Area by creating affordable rental housing opportunities for families
23 and persons who meet the income eligibility guidelines.
24 Section 2. The Agency authorizes the appropriation of $800,000 from the federal
25 HOME grant Program, fiscal year 2004-2005 for Mary's Mercy Center, Inc. to carry out the
Project and the acquisition of a defined Transitional Re-Entry Home, and the Interim Executive
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P:\Agendas\Resoiut ions\Rewlutions.2005'.05-12-19 Mary's Mercy Center Reso.dor
1 Director of the Agency is authorized to execute the HOME Grant Agreement and execute am
02 such other documents as may be necessary to implement the HOME Grant Agreement and to
3 make any necessary non-substantive changes in the HOME Grant Agreement as may be
4 approved by Agency Counsel, provided such changes do not increase the Agency's financial
5 contribution of$800,000 to the project.
6 Section 3. On August 19, 2003, the Planning Commission considered and approve
Mary's Conditional Use Permit (CUP) No. 02-02 request and in conjunction with said CUP
8 made a finding that the Project is exempt from the California Environmental Quality Ac
9 (CEQA), pursuant to Section 15332, in fill development, and no further environmental document
10 is required pursuant to Section 15168 of the CEQA guidelines and the Community Development
11 Commission is relying on this determination and the necessary Notices of Determination an
Exemption will be filed with HUD and the City Clerk.
12
Section 4. The Resolution shall become effective immediately upon its adoption.
13
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P:Wgendas`,Resolutions\Resolutions\2005\05.12.19 Mary's Mercy Center Reso.doc
L
1 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO APPROVING AND
2 AUTHORIZING THE INTERIM EXECUTIVE DIRECTOR OF THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
("AGENCY") TO EXECUTE THE HOME GRANT AGREEMENT BY
a AND BETWEEN THE AGENCY AND MARY'S MERCY CENTER, INC.,
A NON-PROFIT PUBLIC BENEFIT CORPORATION
6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the
Community Development Commission of the City of San Bernardino at a
meeting thereof, held on the day of , 2005, by the following vote to wit:
8
Commission Members: Aves Nays Abstain Absent
9
ESTRADA
to
LONGVILLE
11
MCGINNIS
12
DERRY
13 KELLEY
14
JOHNSON
1' MC CAMMACK
16
17
Secretary
18
19 The foregoing resolution is hereby approved this day of , 2005.
20
21 I Judith Valles, Chairperson
Community Development Commission
'-'- of the City of San Bernardino
23 Approved as to form and Legal Content:
24 /)
,j By:
i V
AL)c11cy C unsel
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Pd Agendas`.Resolutions\Resolutions'5005\05-12-19 Man's Nlercv Center Reso_doc
I
HOME GRANT AGREEMENT
BY AND BETWEEN MARY'S MERCY CENTER, INC.
AND THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
THIS HOME GRANT AGREEMENT (this "HOME Grant Agreement") is dated as of
December 19, 2005, by and between Mary's Mercy Center, Inc., a California non-profit public benefit
corporation (the "Grantee") and the Redevelopment Agency of the City of San Bernardino, a public
body corporate and politic (the "Agency") and is entered into in light of the facts set forth in the
following recital paragraphs:
RECITALS
1. The City of San Bernardino (the "City") is an entitlement jurisdiction and receives
annually certain federal funds under the HOME Investment Partnership Act (the "HOME Program")
from the United States Department of Housing and Urban Development ("HUD") in order to carry out
eligible affordable housing activities within the City in accordance with the HOME Program
Regulations set forth in Title 24 Code of Federal Regulations Part 92, et seq. (24 CFR Part 92); and
2. The City has designated and authorized the Agency to administer and implement the
HOME Program of the City-, and
3. HOME Program funds of the City may be used by the Agency for locally based
nonprofit housing entities to carry out affordable housing activities in compliance with the HOME
Program Regulations, including without limitation "transitional housing" development projects as this
term is defined at 24 CFR Part 92.2; and
4. The Grantee is a locally certified and/or approved and experienced nonprofit housing
organization, and the Grantee has previously obtained HUD Grant No. CA1613209-004 during 2004
(the "HUD Transitional Housing Grant") in the anticipated sum of$1,070,927 for the development and
operation of a transitional housing facility to be called Veronica's Home of Mercy at a total anticipated
construction cost of$2,427,000 (the -Project"); of said total dollar figure, an amount equal to $300,000
of the HUD Transitional Housing Grant shall be used in the manner as provided in paragraph 5 below
for construction purposes related to the Project with the remaining $770,927 to be used for the
operation of the Project upon the completion of the construction thereof, and
5. Certain portions of the funds allocated to the Grantee under the HUD Transitional HUD
Grant in an amount equal to $770,927 are intended to be used and applied by the Grantee for the
operation of the Project after the completion of the construction thereof, and the Grantee is responsible
for obtaining additional funds in addition to the remaining $300,000 of the HUD Transitional Housing
Grant in an amount equal to approximately $1,947,000 to be used for the construction of
improvements constituting the Project which is intended to provide for the housing of low-income
persons and families who will be benefited by the transitional housing project and supportive services
provided by the Grantee under the HUD Transitional Housing Grant; and
6. The Grantee has proposed that the Agency participate with the Grantee in the funding of
the acquisition and construction of transitional housing facilities such as the Project and the hereinafter
defined Transitional Re-Entry Home which are eligible under the HOME Program, and the Grantee
further covenants that the beneficiaries of its activities under the HOME Program and this HOME
Grant Agreement, are or will be families and persons who meet the income eligibility guidelines of 24
CFR Part 92.252; and
4846-4224-2560.1 1
P '.gcndas`Agenda Anxhr. nts'Agrnns-Amend 200`.05-12 19 Mary's Macy HOME Agreement Fina1 d«
7. The Agency deems that the activities to be undertaken by the Grantee herein are
consistent with and supportive of the HOME Program Regulations and that the financial assistance of
the Agency is necessary and appropriate to initiate the transitional housing activities of the Grantee as
set forth herein; and
8. The Agency deems it desirable to enter into this HOME Grant Agreement with the
Grantee in order to provide HOME Program funds for the acquisition and development of the Project
as a transitional housing facilities and the Transitional Re-Entry Home both of which shall be operated
by the Grantee and for the provision of affordable rental housing to low-income persons and families
in accordance with the HOME Program guidelines; and
9. The Agency shall provide the sum of$800,000 in HOME Program Funds of the City as
a grant to the Grantee as the "Agency HOME Fund Grant Contribution", subject to the terms and
conditions of this HOME Grant Agreement; said amount shall be applied in part for the purchase of a
single family home in an amount not to exceed $200,000 constituting the Transitional Re-Entry Home
as hereinafter defined, together with other funds of the Grantee as specified herein, and the remaining
$600,000 shall be used and applied to fund a portion of the construction costs of the Project; and
10. The funds as provided in this HOME Grant Agreement by the Agency to the Grantee in
the amount of $800,000 are in consideration of the Grantee agreeing to the 55-year affordability
covenant as shall be applicable to the Project and the Transitional Re-Entry Home all as further set
forth herein and the Agency HOME Covenant attached hereto as Exhibit "C". None of the proceeds of
the Agency HOME Fund Grant Contribution shall be repayable to the Agency unless a default shall
have occurred pursuant to either this HOME Grant Agreement and said Agency HOME Covenant.
NOW, THEREFORE, GRANTEE, FOR ITSELF AND ITS SUCCESSORS AND ASSIGNS
AND THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO DO HEREBY
COVENANT AND AGREE AS FOLLOWS:
ARTICLE I
CERTAIN DEFINITIONS AND GENERAL MATTERS
Section 1.1. Definitions. In addition to the definitions of certain terms and phrases, which
appear in the introduction paragraph, the recitals or elsewhere in this HOME Grant Agreement, the
following words and phrases are defined as follows:
• "Agency HOME Covenant" refers to the "2005 Redevelopment Agency of the City of
San Bernardino HOME Program Regulatory Agreement and Project Site and
Transitional Re-Entry Home Use Covenant" by and between the Grantee and the
Agency substantially in the form attached hereto as Exhibit "C" of this HOME Grant
Agreement and incorporated herein by this reference. The Agency HOME Covenant
shall be recorded upon the date of the initial HOME Grant Advance by the Agency to
the Grantee for the Project and separately for the Transitional Re-Entry Home upon the
acquisition of the fee title thereto by the Grantee. Such Agency HOME Covenant shall
be in effect for the Project and the Transitional Re-Entry Home for a period of time
equal to fifty-five (55) years from and after the date of recordation as to each of said
properties.
48464224-2560.1 2
Agendas Agenda Attachments Agrnas-Amend 20050',-12.19 Mary's Mercy HOME Agreement Final doc
• "Agency HOME Fund Grant Contribution" refers to the sum of $800,000 which the
Agency shall contribute in four (4) separate installments of $200,000 each for the
account of the Grantee for the purposes set forth in this HOME Grant Agreement;
• "Architect" refers to the licensed firm of architects or the firm of civil engineers
retained by the Grantee to design the Improvements and manage the oversight of the
construction of the Improvements on the Project Site.
• "City CUP" refers to the City Conditional Use Permit No. 02-02 as amended, which
sets forth the various conditions of approval for the construction and operation of the
Improvements on the Project Site as part of the Project.
• "Escrow Holder" refers to escrow company to be designated in the manner as provided
herein who shall serve as the escrow holder of the parties for the Grantee's acquisition
of the Transitional Re-Entry Home.
• "General Contractor" refers to the licensed general contractor retained by the Grantee to
construct the Improvements on the Project Site.
• "HOME Affordability Period" refers to the period of time when the Agency HOME
Covenant is in effect as a covenant, which affects the Project Site and the Transitional
Re-Entry Home.
• "HOME Grant Advance" refers to the disbursement by the Agency to the Grantee of an
installment of the Agency HOME Fund Grant Contribution. Each HOME Grant
Advance shall be as follows:
(1) $200,000: for the acquisition of the Transitional Re-Entry Home; and
(ii) $200,000: upon certification of the Architect and General Contractor that
50% of the Improvements have been constructed on the Project;
(iii) $200,000: upon certification of the Architect and General Contractor that
75% of the Improvements have been constructed on the Project;
(iv) $200,000: upon certification of the .Architect and General Contractor that
the Improvements have been completed and the City has issued a
certificate of occupancy of the completed Improvements on the
Proj ect.
$500,000: Total amount of Agency HOME Fund Grant Contribution
0 "Home Grant Documents" refers, collectively, to this HOME Grant Agreement, the
Agency HOME Covenant and the other documents and certificates delivered by the
Grantee to the Agency as provided for under this HOME Grant Agreement.
• "HUD Transitional Housing Grant Agreement" refers to the HUD Grant Agreement No.
CAI 613209-004, dated June 7, 2004, by and between HUD and the Grantee.
4846-4224-:560.1
3
'r AgendulAgenda Anachmenis Agrmas-Amend 2005',05-12.19 Mary's Mercy HOME Agreement Final duc
• "Improvement Construction Budget" refers to the itemized budget for the estimated cost
of constructing the Improvements on the Project Site and the Transitional Re-Entry
Home. The Improvement Construction Budget set forth on a line item basis is attached
hereto as Exhibit "B".
• "Improvements" refer to the design and construction of a two and one-half(2 %2) story
structure, including approximately 15,000 square feet of interior area with twenty (20)
residential dwelling units, additional management and supervisory units and a common
dining area, laundry area, nursery, training rooms, staff offices and appurtenant
facilities.
• "Plans" refer to the plans and specifications for the construction of the Improvements as
required to be prepared for the Project in accordance with the City CUP.
• "Project" refers to the transitional housing facility for persons and families consisting of
adult pregnant women and their children, who are at the time of the initial occupancy at
the Project, homeless individuals. The Project shall be acquired, constructed and
operated by the Grantee subject to the terms and conditions of HUD Transitional
Housing Grant and this HOME Grant Agreement.
• "Project Site" refers to the land described in Exhibit "A". The Project Site includes
lands which are owned by the Grantee as of the date of this HOME Grant Agreement.
The Improvements shall be constructed on the Project Site, and upon the completion of
the Improvements, the Project shall be operated by the Grantee on the Project Site.
• "Title Company" refers to such title insurance company as may be designated by the
Grantee in the manner as provided herein and which shall issue an owner's policy of
title insurance in favor of the Grantee at the close of the Transitional Re-Entry Home
Escrow insuring the lien-free fee title interest of the Grantee in the Transitional Re-
Entry Home, subject only to the affordable rental housing use restrictions imposed on
the Transitional Re-Entry Home by the Agency under the Agency HOME Covenant.
• "Transitional Re-Entry Home" refers to a three (3) bedroom single-family residential
real property, which the Grantee shall acquire in addition to the construction of the
Project. Such Transitional Re-Entry Home is presently intended to be located at 1490
West 6`h Street, City of San Bernardino, and such location of the Transitional Re-Entry
Home may be modified to include another suitable three (3) bedroom single-family
residential real property with the written consent of the Interim Executive Director.
• "Transitional Re-Entry Home Escrow" refers to the escrow or property transfer account
transaction by and between the Grantee and the third party owner of the Transitional
Re-Entry Home pursuant to which such third party owner shall covey all of its right,
title and interest in the Transitional Re-Entry Home to the Grantee.
Section 1.2. Exhibits. The following is an index of the various exhibits, which are attached
to this HOME Grant Agreement:
Exhibit "A" Project Site Legal Description and Property Address; Transitional Re-Entry
Home
3 48464224-2560.1 4
P lAgendas\Agenda Anachnnenrs'.Agrrras-Amend 2005,05-12-19 Mary's Mercy HOME Agreement Final doc
Exhibit "B" Improvement Construction Line Item Budget
Exhibits "C" Agency HOME Covenant including Exhibit "A" Legal Description of the
Project Site and Transitional Re-Entry Home and Exhibit "B" thereto entitled
General Form of HOME Program Rental Housing Income Certification
Section 1.3. Effective Date. This HOME Grant Agreement is dated as of as of the date
written above, and shall take effect when each of the following has occurred:
(1) this HOME Grant Agreement has been approved by the Community Development
Commission of the City; and
(ii) this HOME Grant Agreement has been fully executed by the parties as evidenced by the
signature of the authorized officers of each of them as appear on page 28; and
(iii) the Grantee has provided the Agency with evidence of the existence and coverage in
favor of the Agency of the insurance described in Section 4.1(6).
When all of the events described in the preceding such paragraphs have occurred, the
"Effective Date" of this HOME Grant Agreement shall have occurred; provided however that the
Effective Date shall have occurred by a date no later than thirty (30) calendar days following the date
on which the Community Development Commission of the City has approved this HOME Grant
Agreement.
ARTICLE II
HOME PROGRAM AND USE OF FUNDS
Section 2.1. Amount and Purpose and Special Fund Obligation of Citv. In reliance upon
the Grantee's representations and warranties, and subject to the terms and conditions herein and in the
HOME Grant Documents, the Agency hereby agrees to make the Agency HOME Fund Grant
Contribution to the Grantee from the available HOME Program funds of the City as administered by
the Agency upon the terms and conditions set forth in this HOME Grant Agreement and the other
HOME Grant Documents. No other source of funds of the City or the Agency are available or shall be
used in connection with any HOME Grant Advance under the Agency HOME Fund Grant
Contribution, and the obligation of the Agency to provide the Agency HOME Fund Grant Contribution
and each HOME Grant Advance hereunder, is a special limited fund obligation payable solely from the
available HOME Program funds of the City s administered by the Agency.
Section 2.2. Fiscal Limitation of HOME Program Imposed On the City and the Agency
By HUD. The United States of America through the Secretary of the United States Department of
Housing and Urban Development ("HUD"), may in the future place programmatic or fiscal limitations
on the available HOME Program funds of the City as administered by the Agency not presently
anticipated. Accordingly, the Agency reserves the right to revise this HOME Grant Agreement in
order to take account of federal government and HUD actions affecting the HOME Program funding
available to the Agency to provide the Agency HOME Fund Grant Contribution and each HOME
Grant Advance to the Grantee hereunder, and the Grantee consents to such revisions. In the event of
funding reduction in the HOME Program funds of the City to such a level that materially affects the
ongoing HOME Program activities of the City as administered by the Agency, the Agency may
suspend further HOME Grant Advances to the Grantee.
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P AgendasWgcnda AttacAmems',Agrrtas-Amend 2005.05-12-19 Mary's Mercy HOME Agreement Final doc
ARTICLE III
GRANTEE'S REPRESENTATIONS AND WARRANTIES TO THE AGENCY
Section 3.1. In order to induce the Agency to make the Agency HOME Fund Grant
Contribution and to pay each installment of a HOME Grant Advance, the Grantee represents and
warrants as follows, which representations and warranties shall be true and correct as of the execution
hereof and shall survive the execution and delivery of this HOME Grant Agreement and any of the
HOME Grant Documents:
(1) Organization of Grantee; Authority to Enter Into HOME Grant Agreement. The
Grantee is a California non-profit corporation organized and existing under the laws of the State of
California. The Grantee has the right and power to purchase, occupy and develop the Transitional Re-
Entry Home and the Project Site, and the Grantee has full power and authority to enter into this HOME
Grant Agreement, the HOME Grant Documents and to expand on proceeds of the HUD Transitional
Housing Grant Agreement, the Agency HOME Fund Grant Contribution and the private funds of the
Grantee in support of the Project as contemplated herein and to execute and carry out the provisions of
the HOME Grant Documents. The execution, delivery and performance of this HOME Grant
Agreement and the HOME Grant Documents have been duly authorized by all of the governing board
of the Grantee, and no other action of the Grantee is required for the execution, delivery and
performance of this HOME Grant Agreement or the HOME Grant Documents. This HOME Grant
Agreement and other HOME Grant Documents which have been executed and delivered pursuant to
this HOME Grant Agreement constitute, or, if not yet executed or delivered, will when so executed
and delivered, constitute valid and binding obligations of the Grantee, each enforceable in accordance
with its terms.
(2) Financial Statements. All financial statements and all financial data heretofore
delivered to the Agency in connection with the Agency HOME Fund Grant Contribution or the
application therefore by the Grantee, are true and correct in all material respects, have been prepared in
accordance with sound accounting principles, fairly represent the respective financial conditions of the
Grantee as of the dates thereof and for the periods covered thereby, and no material adverse change has
occurred in the financial conditions presented therein since the respective dates thereof.
(3) No Litigation or Changes in Laws. There are no actions, suits or proceedings which
have been served on the Grantee or which the Grantee is otherwise aware, or any changes to any law,
ordinance or regulation pending, or to the knowledge of the Grantee threatened against or affecting the
Grantee or the Project Site or the Transitional Re-Entry Home in any court at law or in equity, or
before or by any governmental or municipal authority which might adversely affect the ability of the
Grantee to perform its obligations hereunder, under any of the HOME Grant Documents, or under any
other agreement to which the Grantee is a party, or which might adversely affect the priority of the lien
of the Agency HOME Covenant on the Project Site and the Transitional Re-Entry Home, the
construction of the Improvements in accordance with the Plans and applicable laws or the use,
occupancy or operation of the Project and the Transitional Re-Entry Home or any part thereof.
(4) Covenants, Zoning and Codes. The Grantee has complied and will continue to
comply with all applicable environmental statutes and regulations of the City to be complied with in
connection with the construction of the Improvements. All permits, consents, approvals or
authorizations by, or registrations, declarations, withholding of objections or filings with the City
necessary in connection with the construction of the Improvements, have been or will be obtained, are
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valid, adequate and in full force and effect or will be obtained prior to the commencement of the
construction of any part of the Improvements. C onstruction of the Improvements and the intended use,
t occupancy and operation thereof will in all respects conform to and comply with the City CUP and all
covenants, conditions, restrictions and reservations affecting the Project Site, and with all applicable
zoning, environmental protection, use and building codes, laws, regulations, and ordinances.
(5) Compliance with Agreements. The execution, delivery and performance of this
HOME Grant Agreement and the other HOME Grant Documents have not and will not constitute a
breach or default under any other agreements, law or court order under which the Grantee is a party or
may be bound or affected or which may affect the Project or the construction, use, occupancy or
operation of the Project or any part thereof.
(6) Compliance By Grantee With HOME Funded Program and Activity Regulations.
The Grantee shall comply with the HOME Program and activity regulations of HUD and the Agency
as set forth in 24 CFR Part 92.350 et. seq. (Subpart H of the HOME Program Regulations); provided,
however, that notwithstanding the provisions of 24 CFR Part 85.46(b), upon the occurrence of an
Event of Default (as defined hereafter in Section 9.1) by the Grantee, the Grantee shall be deemed to
have waived any right to a hearing, appeal or other administrative proceeding with the Agency as may
otherwise be available under 24 CFR Part 85.43(b), and the Agency may exercise its rights and
remedies upon such Event of Default as provided in this HOME Grant Agreement and the HOME
Grant Documents. Any breach or default by the Grantee of the HOME Program regulations shall be
deemed to be an Event of Default.
(7) Prohibited Interest of Officials and Employees of Agency and Grantee. No
member of the Congress of the United States, and no other officer or employee of the United States
shall be admitted to any share or part of this HOME Grant Agreement or to any benefit arising
herefrom. Furthermore, no member of the governing board of the Grantee and no other officer or
employee of the Grantee, or its agents and no member of the Community Development Commission of
the City of San Bernardino or any other officer or employee of the City, or its agents, who exercises
any function or responsibility with respect to this HOME Grant Agreement during his tenure
employment or engagement, or for one (1) year thereafter, shall have any interest, direct or indirect, in
any contract or subcontract, or the proceeds thereof, for work to be performed pursuant to this HOME
Grant Agreement. The Grantee shall incorporate or cause to be incorporated, in all contracts and
subcontracts relating in any manner to this HOME Grant Agreement, including the Grantee's
construction contracts (as defined below), a provision prohibiting such interest.
The officers and employees of the Grantee have read and are aware of the provisions of
Government Code Section 1090, et seq., and Government Code Section 87100 et seq., relating to
prohibited interests and conflicts of interest of public officers and employees. The Grantee represents
and warrants based upon due and diligent inquiry that the Grantee is unaware of any financial or
economic interest of any public officer or employee of either the Grantee or the Agency relating to the
execution of this HOME Grant Agreement. It is further understood and agreed that if such a prohibited
financial interest under Government Code Section 1090 et seq., does exist at the inception of this
HOME Grant Agreement, the Agency may immediately terminate this HOME Grant Agreement by
giving written notice thereof. The members of the governing board of the Grantee, and its officers,
employees and agents shall comply with the requirements of Government Code Section 87100 et seq.,
during the term of this HOME Grant Agreement.
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(8) Federal Labor Standards Provisions. The Grantee, the Architect and the General
Contractor and all subcontractors engaged under contracts in excess of $1,000 for the construction,
alteration, and/or repair of the Improvements shall comply with State of California Labor Code Section
1720, et seq. and HUD requirements pertaining to such contracts and the applicable requirements of
the regulations of the State of California Department of Industrial Relations under Title 8 California
Code of Regulations Section 16000, et seq., and the Department of Labor under 29 CFR Parts 3, 5 and
Section 5.5(a), governing the payment of wages and the ratio of apprentices and trainees to
journeymen; provided, that if wage rates higher than those required under such regulations are imposed
by the State of California, nothing hereunder is intended to relieve the Grantee of its obligation to
require payment by its contractors and subcontractors of higher rates. The Grantee shall cause or
require to be inserted in full, in the Grantee's Construction Contract and all such other contracts
subject to such regulations, the "Federal Labor Standards Provisions" clause. The Grantee shall
comply with the procedures set out in HUD Handbook 1344.1, "Federal Labor Standards Compliance
in Housing and Community Development Programs", as amended, which is incorporated herein by this
reference as if set forth in full.
No award of a contract by the Grantee relating to the Improvements shall be made to any
General Contractor or any subcontractor who is ineligible to bid on or perform such work under the
provisions of any applicable regulations of the State of California Department of Industrial Relations
or the Department of Labor.
(9) Nondiscrimination Requirements. The Grantee is subject to all applicable
requirements of the following Acts, promulgations, and regulations with respect thereto:
A. Title VI of the Civil Rights Act of 1964 (P.L. 88-352) and the regulations issued
pursuant thereto (24 CFR Subtitle A, Part 1), which provides that no person in the United States
shall on the grounds of race, color, or national origin, be excluded from participation in, be
denied the benefits of, or be otherwise subjected to discrimination under any program or
activity for which the applicant receives federal financial assistance and will immediately take
any measures necessary to effectuate this assurance. Where the federal financial assistance is
to provide or is in the form of personal property or real property interest therein or structures
thereon, this assurance shall obligate the applicant, or in the case of any transfer of such
property, any transferee, via the instrument effecting any disposition by the applicant or
transferee, in the case of a subsequent transfer, of such real property, structures or
improvements thereon, or interest therein, to require a covenant running with the land assuring
nondiscrimination for the period during which the real property or structure is used for a
purpose for which the federal financial assistance is extended or for another purpose involving
the provision of similar services or benefits, or for as long as the applicant retains ownership or
possession of the property, whichever is longer. Under this assurance, the United States shall
have the right to seek its judicial enforcement. The Grantee is required to take all measures
necessary to effectuate this Title in the manner set forth in Section 1.5 of the above-mentioned
regulation.
B. Title VIII of the Civil Rights Act of 1968 (P.L. 90-284) as amended,
administering all programs and activities relating to housing and community development in a
manner to affirmatively further fair housing; and requiring action to affirmatively further fair
housing in the sale, lease or rental of housing, the financing of housing, and the provision of
brokerage services within the jurisdiction of the County of San Bernardino.
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C. Section 109 of the Housing and Community Development Act of 1974, and the
regulations issued pursuant thereto (24 CFR Part 92.350), which provide that no person in the
United States shall, on the ground of race, color, national origin or sex, be excluded from
participation in, be denied the benefit of, or be subjected to discrimination under, any program
or activity funded in whole or in part with Title I funds.
D. Executive Order 11063, as amended, and the regulations issued pursuant thereto
(24 CFR Part 107) which require that all actions necessary and appropriate be taken to prevent
discrimination because of race, color, creed, or national origin in the sale, rental, leasing or
other disposition of residential property and related facilities or in the use or occupancy thereof
where such property or facilities are owned or operated by the federal government, or provided
with federal assistance by HUD, and in the lending practices with respect to residential
property and related facilities of lending institutions insofar as such practices relate to Grants
insured, guaranteed or purchased by HUD.
(10) Equal Employment Opportunity. During the course of the planning, design, and
construction of the Improvements, and during subsequent operation of the Project, the Grantee shall
not discriminate against any employee or applicant for employment because of race, color, religion,
sex, or national origin. The Grantee shall take affirmative action to insure that applicants for
employment are employed, and that employees are treated during employment, without regard to their
race, color, religion, sex, or national origin. Such action shall include, but not be limited to, the
following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising;
layoff or termination; rates of pay or other forms of compensation; and the selection for training,
including apprenticeship. The Grantee shall post in conspicuous places, available to employees and
applicants for employment, notices to be provided by the Agency and/or HUD setting forth the
provisions of this nondiscrimination clause. The Grantee shall state, through such nondiscrimination
clause, that all qualified applicants will receive consideration for employment without regard to race,
color, religion, sex, or national origin. Except as otherwise provided for in Parts II, III and IV of
Executive Order 11246, dated September 24, 1965, as amended, and in attendant Code of Federal
Regulation provisions, the Grantee shall require to be included in each contract entered into by the
Grantee and modification thereof if not included in the original contract, the "Equal Opportunity"
clause contained in Section 202 of Executive Order 11246 (48 CFR 52.222-26). The Grantee agrees
that it shall assist and cooperate actively with the Agency, HUD and the Secretary of Labor in
obtaining the compliance of contractors and subcontractors with the equal opportunity clause and the
rules, regulations, and relevant orders of the Secretary of Labor; that it will furnish the Agency, HUD
and the Secretary of Labor such information as they may require for the supervision of such
compliance; and that it will otherwise assist the Agency and HUD in the discharge of their primary
responsibilities for securing compliance. The Grantee agrees that it will refrain from entering into any
contract or contract modification subject to Executive Order 11246 of September 24, 1965, with a
contractor debarred from, or who has not demonstrated eligibility for, government contracts and
federally assisted construction contracts pursuant to the Executive Order and will carry out such
sanctions and penalties for violation of the equal opportunity clause as may be imposed upon
contractors and subcontractors by HUD or the Secretary of Labor pursuant to Part II, Subpart D of the
Executive Order. In addition, the Grantee agrees that if it fails or refuses to comply with the
undertaking set forth in this Section 2.17, an Event of Default shall be deemed to have occurred under
this HOME Grant Agreement and the Agency may refer the matter to the United States Department of
Justice.
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(11) HUD Transitional Housing Grant Agreement. As of the Effective Date of this
HOME Grant Agreement, the Grantee is in full compliance with the terms and conditions of the HUD
Transitional Housing Grant Agreement, the HUD Transitional Housing Grant Agreement is in full
force and effect and no event has occurred, which with the giving of notice and the passage of time,
would be an event of default under such HUD Transitional Housing Grant Agreement.
(12) Improvement Construction Budget. After diligent investigation of the relevant
conditions, including the provisions of the City CUP, the property improvement construction standards
of 24 CFR Part 92.251(a), consultations with the Architect and such other persons as the Grantee
deems appropriate, the Grantee represents that the Improvement Construction Budget attached as
Exhibit '`B" reflects the Grantee's best true, accurate and complete estimate of the costs of the
Improvements as shown therein, as necessary to construct the Improvements in accordance with the
City CUP, the property construction standards of 24 CFR Part 92.251(a) and the Plans.
(13) Grantee Funds to Complete the Improvements. The Grantee covenants to the
Agency that it has reserved and allocated and has available to the Grantee, the sum of$1,400,500 in
funds of the Grantee, which when added to the sum of$300,000 available to the Grantee under the
HUD Transitional Housing Grant Agreement and the sum of $600,000 of the Agency HOME Fund
Grant, $406,500 from fundraising events and California Endowment of the Arts Contribution available
to the Grantee under this HOME Grant Agreement for the cost of construction of the Improvements,
shall be sufficient for the Grantee to pay for the cost of constructing and installing the Improvements
on the Project Site.
(14) Grantee Funds to Acquire the Transitional Re-Entry Home. The Grantee covenants
to the Agency that it has reserved and allocated and has available to it the sum of not less than $50,000
in funds of the Grantee, which when added to the sum of$200,000 of the Agency HOME Fund Grant
Contribution available to the Grantee under this HOME Grant Agreement, shall be sufficient for the
Grantee to acquire the Transitional Re-Entry Home.
(15) Function of Architect. All of the work of the design and construction of the
Improvements shall be supervised for the Grantee by the Architect. The Grantee shall not terminate
the services of the Architect during the time when the Improvements are under design and construction
except upon prior written notice to the Agency.
(16) Faith-Based Activities of the Grantee on the Project Site and the Transitional Re-
Entry Home. In its operation of the Project and the Transitional Re-Entry Home, the Grantee shall
comply with- the provisions of 24 CFR Part 92.257, as relate to the activities of faith-based
organizations.
(17) Incorporation of Representations and Warranties. The request by the Grantee for
any HOME Grant Advance proceeds under this HOME Grant Agreement shall constitute a
certification by the Grantee that the aforesaid representations and warranties are true and correct in all
material respects as of the date of such request, except with respect to financial statements to the extent
that such statements have been prepared with respect to an earlier date.
(18) Survival of Representations and Warranties. All of the representations and
warranties contained in this Article III shall be true and correct in all material respects on the Effective
Date through and until the final disbursement of the last HOME Grant Advance, and shall continue to
be true and correct in all material respects at all times during the HOME Affordability Period.
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(19) Continuing Accuracy. During the entire period of the term of the Agency HOME
Grant, the Grantee shall promptly notify the Agency of any event, which would render any of said
misrepresentations and warranties untrue or misleading in any material respect.
ARTICLE IV
CONDITIONS PRECEDENT TO INITIAL HOME GRANT ADVANCE
Section 4.1. The Agency's obligation to disburse the initial HOME Grant Advance to the
Grantee Agreement shall be subject to the full and complete satisfaction of the following conditions
precedent:
(1) If the HOME Grant Advance is for the Grantee's purchase of the Transitional Re-Entry
Home, fully executed copies of each of the HOME Grant Documents which documents shall have been
duly authorized, executed (and, where appropriate, acknowledged), and delivered by the parties thereto
encumbering the Transitional Re-Entry Home with the HOME Grant Documents, and any and all other
documents as the Agency may deem reasonably necessary with respect to the acquisition of the
Transitional Re-Entry Home.
(2) If the HOME Grant Advance is for the payment of the cost of construction of the
Improvements, the Grantee shall certify that the services of the Architect have been retained and a
complete set of the Plans, and all addendums thereto issued by the Grantee has been approved by the
Architect and is consistent with the City CUP.
(3) If the HOME Grant Advance is for the payment of the cost of construction of the
Improvements, the Grantee shall certify that it has executed a fixed price construction contract for the
Improvements presently estimated not to exceed $2,427,000 between the Grantee and the General
Contractor and that such contract is in full force and effect and the Grantee shall provide the Agency
with a copy of such construction contract.
(4) If the HOME Grant Advance is for the payment of the cost of construction of the
Improvements, the Architect and the General Contractor shall each certify in writing addressed to the
Agency that:
(1) in the case of the first HOME Grant Advance for $200,000 to pay for the cost of
Improvements, that at least fifty percent (50%) of the aggregate value of the Improvements has
been constructed and installed on the Project Site;
(ii) in the case of the second HOME Grant Advance for $200,000 to pay for the cost
of Improvements, that at least seventy five percent (75%) of the aggregate value of the
Improvements has been constructed and installed on the Project Site;
(iii) in the case of the third HOME Grant Advance for $200,000 to pay for the cost
of Improvements that the work has been completed and the City has issued its certificate of
occupancy to the Grantee for such completed Improvements.
(5) The Agency shall have received evidence satisfactory to it that the Grantee and the
persons signing this HOME Grant Agreement and each of the HOME Grant Documents on behalf of
the Grantee have the capacity and authority to execute and deliver the HOME Grant Documents. Such
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documentation shall include, without limitation, a certified copy of a resolution of the governing board
of the Grantee authorizing the Grantee to enter into the HOME Grant Agreement and the officers to
execute the HOME Grant Documents.
(6) The Grantee is required to maintain, or cause to be maintained, and shall deposit with
the Agency, original insurance policies issued by insurance companies acceptable to the Agency and
written in form and content acceptable to the Agency, providing the following minimum insurance
coverages:
(i) All risk course of construction insurance with the Agency's Loss Payable
Endorsement (438BFU) naming the Agency attached, on a Builder's Risk Completed Value
non-reporting form of policy (provided that in no event may the amount of coverage to be
maintained by the Grantee be less than the amount of coverage necessary to eliminate any risk
of co-insurance of loss).
(ii) Comprehensive public liability insurance in amounts reasonably required by the
Agency from time to time, and in no event less than $2,000,000 combined single limit liability
insurance, naming the Agency as an additional insured.
(iii) Workers' compensation insurance for all persons employed by the Grantee in
connection with the construction of the Improvements.
(iv) All insurance coverage required under the HUD Transitional Housing Grant
Agreement, as applicable.
Each of the foregoing policies shall contain a thirty (30) calendar day notice of cancellation
clause to the Agency except as the Agency otherwise approves. No such insurance shall include
deductible amounts to which the Agency has not previously consented in writing. No less than thirty
(30) calendar days prior to the expiration of each policy, the Grantee shall deliver to the Agency
evidence of renewal or replacement of such policy satisfactory to the Agency.
(7) If the HOME Grant Advance for the Grantee's purchase of the Transitional Re-Entry
Home, the condition of title to the Transitional Re-Entry Home, the legal description and street address
of the Transitional Re-Entry Home and all documents and other matters relating in any way to the
Transitional Re-Entry Home must be to the satisfaction of the Agency.
(8) The Grantee shall have furnished to the Agency a current report ("Environmental —
Report") regarding the possible presence of any hazardous substances on, in, or around the Project Site
and the Transitional Re-Entry Home. Such report shall be in form and substance acceptable to the
Agency, prepared by a registered certified engineer or geologist acceptable to the Agency, and
showing no state of facts objectionable to the Agency.
(9) If requested by the Agency in connection with a HOME Grant Advance for the payment
of the cost of construction of the Improvements, the Grantee shall:
(i) provide the Agency with evidence satisfactory to the Agency (A) that the
Grantee has complied with all covenants, conditions, restrictions and reservations affecting the
Project Site, including without limitation those imposed by the City under its development plan
approval for the Improvements; (B) that the Project Site is duly and validly zoned for the
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intended use; and (C) that the Grantee has obtained all zoning, subdivision and environmental
approvals, permits and maps required to be obtained in order to construct the Improvements.
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(ii) provide the Agency with evidence that all building and other permits required
for construction of the Improvements have been issued in accordance with the Plans.
(iii) provide written confirmation to the Agency that neither the Improvements, to
the extent then constructed, nor the Project Site, nor any part thereof, shall have been materially
damaged, destroyed, condemned or threatened with condemnation, subject to any rights the
Grantee may have to rebuild the Improvements.
(iv) provide written confirmation to the Agency that no order or notice shall have
been made by, or received from, any governmental agency having jurisdiction stating that all or
a portion of the work of construction of the Improvements is or will be in violation of any law,
ordinance, code or regulation affecting the Project Site.
(v) provide the Agency with a report from the either the Architect or the General
Contractor which allocates the amount of the HOME Grant Advance to the appropriate Grantee
construction contract and certify the amount of such disbursement fairly reflects the value of
the work and materials incorporated into the Improvements under each such Grantee
construction contract and that the work being paid for with the HOME Grant Advance has been
satisfactorily completed substantially in accordance with the Plans and the Improvement
Construction Budget.
(vi) receipt by the Agency of written assurance satisfactory to the Agency that the
Grantee has available funds (other than the Agency HOME Fund Grant Contribution and the
HUD Transitional Housing Grant) sufficient to complete the construction of the Improvements.
(vii) all of the representations and warranties of the Grantee contained in this HOME
Grant Agreement shall remain true and correct in all material respects.
Section 4.2. Conditions Precedent to Final HOME Grant Advance. In addition to the
conditions set forth in Section 4.1 hereof, the Agency's obligation to make the final advance of the
Agency HOME Fund Grant Contribution for construction purposes shall be subject to the satisfaction
of the following conditions precedent, each of which the Grantee shall endeavor to furnish as promptly
as is reasonably possible.
(i) substantial completion of construction of the Improvements in accordance with
the Plans, and if required by the Agency, its receipt of a certificate of completion from the
Architect and the General Contractor certifying that the Improvements have been completed
substantially in accordance with the Plans.
(ii) receipt by the Agency of a copy of a Notice of Acceptance duly authorized and
recorded by the Grantee sufficient to effect the purpose of such notices as contemplated by the
Civil Code Section 3184 with respect to the stop notice rights of mechanics and materials
suppliers engaged on the Improvements.
/ "A (iii) receipt by the Agency of the final Certificate(s) of Occupancy for the
r+,l Improvements issued by the City of San Bernardino evidencing that the Improvements have
been completed and that the Improvements may be lawfully occupied by the Grantee in
accordance with applicable laws.
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(iv) there shall be no statutory liens on record for labor or material arising out of the
construction of the Improvements; provided, however, that if there are any such liens the
Grantee shall have made arrangements satisfactory to the Agency for the disposition or bonding
thereof.
ARTICLE V
CONSTRUCTION COVENANTS
Section 5.1. The Grantee covenants and agrees that from and after the execution of this
HOME Grant Agreement and the commencement of construction of the Improvements that it will:
(i) preserve and keep in full force and effect its existence as a non-profit public
benefit corporation and retain title to the Project Site subject only to title exceptions permitted
by the Agency;
(ii) maintain, preserve and keep its properties and equipment situated on the Project
Site in good repair, working order and condition and from time to time make all needful and
proper repairs, renewals, replacements and additions thereto so that at all times the efficiency
thereof shall be fully preserved and maintained;
(iii) maintain the insurance required herein;
(iv) the Grantee shall commence the construction of the Improvements on the
Project Site by a date not later than June 30, 2006;
(v) the Grantee shall complete the construction of the Improvements within two
hundred seventy (270) calendar days following the commencement of construction thereof,
except in the case of"Unavoidable Delay", as defined in Section 5.1(vi), below;
(vi) after commencement of the work of construction of any phase of the
Improvements, the Grantee shall not permit, and shall not allow the General Contractor for the
respective phase of the Improvements to permit, cessation of, for a period in excess, in the
aggregate, of thirty (30) calendar days for any reason. Notwithstanding the foregoing, such
thirty (30) calendar day period may be extended by the Agency acting by and through the
Interim Executive Director, but only up to an aggregate maximum of forty five (45) for any
delays which are beyond the control-of the Grantee, including delays caused by strikes, acts of
God, weather, inability to obtain labor or materials, inability to obtain governmental permits or
approvals, governmental restrictions, civil commotion, fire or similar causes ("Unavoidable
Delay") (but excluding financial circumstances or events which may be resolved by the
payment of money); provided, however, that the Grantee has notified the Agency of such delay
within ten (10) calendar days of occurrence of such Unavoidable Delay. No Unavoidable
Delay shall suspend or otherwise abate any obligation of the Grantee under the HOME Grant
Documents.
Section 5.2. Chances to Plans and Construction Contracts. Either before the award of a
Grantee construction contract for any phase of the Improvements, or after a contract has been awarded
to a General Contractor for any phase of the Improvements, there shall be no material change of any of
the Plans or working drawings, or any of the Grantee's construction contracts, whether by change
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order or otherwise which may affect the cost of the Improvements by more than $100,000, without the
prior written approval of the Agency, and, to the extent that such approvals may be required, the prior
written approval of all appropriate governmental authorities. The Agency, acting by and through the
Interim Executive Director, shall respond to the Grantee's request for approval of a material change to
the Plans or working drawings or any of the Grantee's construction contracts, within five (5) business
days of its receipt of such request; provided, however, that the Agency's failure to respond within such
five-day period shall constitute the Agency's disapproval of the request. As a condition to its approval
of any change, the Agency may require verification that the change will not increase the total cost of
constructing the Improvements or the time required to complete their construction. If the proposed
change may affect the Improvement Construction Budget, the Grantee shall follow the procedure
described in Section 6.2 hereof with respect to additional Grantee funds in requesting the Agency to
approve such a change.
Section 5.3. Compliance with Laws. All work performed in connection with the
Improvements shall comply with all applicable laws, ordinances, rules and regulations of federal, state,
county or municipal governments or agencies now in force or which may be enacted hereafter, and
with all applicable directions, rules and regulations of the fire department, health department, building
department or other departments of every governmental agency now having or hereafter acquiring
jurisdiction over the Property or construction of Improvements.
Section 5.4. Protection Against Mechanics' Liens or Stop Notice Claims. The Grantee
agrees to pay and discharge all claims for labor performed and material and services furnished in
connection with construction of the Improvements, to diligently record or procure the recordation of a
valid Notice of Acceptance upon completion of construction, to diligently record or procure for
recordation of a Notice of Cessation in the event of a cessation of labor, on the work of improvement
for a continuous period of thirty (30) calendar days or more, and to take all other steps necessary to
forestall the assertion of claims or liens either against the Grantee, the Project Site, or the
Improvements, or any part thereof or right or interest appurtenant thereto, or of claims against the
Agency or the HOME Grant funds. Nothing herein contained shall require the Grantee to pay any
claims for labor, materials or services which the Grantee, in good faith disputes and which the Grantee,
at its own expense, is currently and diligently contesting, provided, however, that not later than ten
(10) business days after the notice of the filing of any claim or lien against the Grantee, or the Property
which is disputed or contested by the Grantee, the Grantee shall either (a) record a surety bond
sufficient to release said claim or lien and promptly give notice of such recordation to the lienholder or
claimant, or (b) make other arrangements therefore satisfactory to the Agency and provided further,
that the Grantee's refusal to pay such claims shall not cause a default to exist under the HUD
Transitional Housing Grant Agreement.
Section 5.5. Construction Inspections. The Agency and its representatives shall have the
right at all reasonable times during regular business hours (and at any time in the event of an
emergency) to enter upon the Project Site and inspect the work of construction to determine that the
same is in conformity with the Plans and all of the requirements hereof. If in the Agency's reasonable
judgment it is necessary, the Agency shall have the further right, from time to time, to retain a
consultant or consultants, at the Grantee's expense, to inspect the work and verify compliance by the
Grantee with the provisions hereof. The Grantee understands and agrees that said inspections are for
the sole purpose of protecting the Agency's HOME Grant Advances and are made solely for the
Agency's benefit; that such inspections may be superficial and general in nature, primarily to inform
the Agency of the progress of construction of the Improvements and that, in any event, the Grantee
shall not be entitled to rely on any such inspection(s) as constituting the Agency's approval,
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satisfaction or acceptance with respect to materials, workmanship, conformance to Plans or otherwise.
The Grantee hereby agrees to make its own inspections of the construction to determine that the quality
of the Improvements and all other requirements of the work of construction financed in whole or in
part by the Agency HOME Fund Grant are being performed in a manner satisfactory to the Grantee,
and the Grantee agrees to immediately notify the Agency in writing should the same show any work to
be unsatisfactory in any manner. Without limiting the foregoing, the Grantee shall permit the Agency
to examine and copy all books and account records and other papers relating to the Project Site and the
construction of the Improvements; and the Grantee will, and will use commercially reasonable efforts
to cause all contractors, subcontractors and materialmen to cooperate with the Agency to enable it to
do so.
Section 5.6. Operating Statements Additional Financial and Other Records. In addition
to any written reports or records of the Grantee as the Agency may request under the HOME Program
Regulations, the Grantee shall also furnish to the Agency upon written request but not more frequently
than once per one hundred eighty (180) calendar days during the term of this HOME Grant Agreement,
copies of reasonably detailed annual operating statements for the Project and the Transitional Re-Entry
Home, prepared in accordance with sound accounting principles, certified by the Grantee to be true
and correct as of the date made. Such statements shall specify, in addition to other information
requested by the Agency, the rents and income (including grant income) received from the Project and
the Transitional Re-Entry Home, the disbursements made for such period. The Grantee shall furnish to
the Agency, from time to time, promptly upon request (1) current financial statements of the Grantee;
(ii) other or further information as to the financial condition of the Grantee; (iii) a list of all material
suppliers and of all contractors and subcontractors employed or to be employed in the construction of
the Improvements showing the nature and the cost of the work to be performed by each; (iv) copies
and/or lists of all paid and/or unpaid bills for construction of the Improvements; (v) budgets of the
Grantee and any revisions thereof showing the estimated costs of construction; and (vi) such reports as
to the status of other matters relating to the Project as the Agency may reasonably request.
Section 5.7. Notify Agencv of Litigation or Compliance. The Grantee shall promptly
notify the Agency in writing of all litigation or overtly threatened litigation affecting the Grantee, the
Transitional Re-Entry Home or the Project or any part thereof, and of all complaints or charges made
by any governmental authority affecting the Project the Transitional Re-Entry Home or the Grantee
which may delay, or require changes in, the construction of the Improvements or impair the security of
the Agency.
Section 5.8. No Secondary Financing. At no time during the term of this HOME Grant
Agreement will the Project Site be encumbered by the lien of any creditor except HUD under the terms
of the HUD Transitional Housing Grant Agreement and the Agency under the HOME Grant
Documents or except as may be specifically approved in advance and in writing by the Agency.
Section 5.9. Indemnify the Citv and the Agency. The Grantee shall indemnify, defend and
hold the City and the Agency and the boards, commissions, elected officials, members, appointed
officers, employees, agents and lawyers of each of them, harmless from all losses for any actual or
alleged damage or injury of whatsoever nature arising out of or in any way connected with the Project
and/or the construction of the Improvements or arising out of the Grantee's breach of the provisions of
this HOME Grant Agreement or any of the other HOME Grant Documents unless such loss is caused
solely by the gross negligence or willful misconduct of the Agency. The Agency may commence,
appear in, or defend any action or proceeding purporting to affect the rights, duties, or liabilities of the
parties hereto, or the Transitional Re-Entry Home, the Project Site or the Improvements, and the
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Grantee shall pay all of the Agency's costs and expenses incurred thereby on demand, including
reasonable legal fees. The words "reasonable legal fees" of the Agency mean and refer to the salaries
and benefits and costs of the attorneys employed by the Office of the City Attorney of the City,
allocated on an hourly basis, who may participate in the defense of the City or the Agency hereunder.
This Section shall survive the payment in full of the Note and the discharge and release of the other
HOME Grant Documents.
Section 5.10. Environmental Covenants.
(a) The Grantee will not use any Hazardous Materials (as defined hereinbelow) in
the construction of the Improvements except in compliance with all applicable laws regulating
Hazardous Materials.
(b) The Grantee shall, at its expense, comply and cause each tenant leasing space
within the Project to comply with all applicable laws, regulations, codes and ordinances
relating to any Hazardous Materials or to any Environmental Activities (as defined
hereinbelow), including, without limitation, obtaining and filing all applicable notices, permits,
licenses and similar authorizations. The Grantee shall establish and maintain a management
and operating policy for the Project and the Transitional Re-Entry Home to assure and monitor
continued compliance by the Grantee and each tenant leasing space in the Project and the
Transitional Re-Entry Home with all such laws, regulations, codes, and ordinances.
(c) The Grantee agrees to submit from time to time, if an Event of Default has
occurred as is continuing or if the Agency has reason to believe Hazardous Materials are
present on either the Project Site or the Transitional Re-Entry Home or if otherwise reasonably
requested by the Agency, a report, satisfactory to the Agency, certifying that the Transitional
Re-Entry Home, the Project Site and the Improvements are not now being used nor been used
in the past for any Environmental Activities. The Agency reserves the right, in its reasonable
discretion, to retain, at the Grantee's expense, an independent professional consultant to review
any report prepared by the Grantee and/or to conduct its own investigation of the premises and
Improvements for Hazardous Materials. The Grantee hereby grants to the Agency, its agents,
employees, consultants and contractors the right to enter upon the Project Site, the Transitional
Re-Entry Home, and the Improvements and to perform such tests as are reasonably necessary
to conduct such a review and/or investigation.
(d) Upon the discovery by the Grantee of any event or situation which would render
any of the representations or warranties contained in this HOME Grant Agreement inaccurate
in any respect if made at the time of such discovery, the Grantee shall promptly notify the
Agency of such event or situation and, within thirty (30) calendar days after such discovery,
submit to the Agency a preliminary written environmental plan setting forth a general
description of such event or situation and the action, that the Grantee proposes to take to correct
such a condition with respect thereto.
(e) The Grantee agrees to submit from time to time, if requested by the Agency, a
report, reasonably satisfactory to the Agency, specifying any activities involving, directly or
indirectly, the use, generation, treatment, storage or disposal of any Hazardous Materials on the
Project Site, the Transitional Re-Entry Home or in the Improvements. The Agency reserves the
right, in its sole and good faith discretion, to retain, at the Grantee's expense, an independent
professional consultant to review any report prepared by the Grantee and/or to conduct its own
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investigation of the Project Site and the Transitional Re-Entry Home. The Grantee hereby
grants to the Agency, its agent, employees, consultants and contractors the right to enter upon
the Project Site and the Transitional Re-Entry Home and to perform such tests as the Agency
deems are necessary to conduct such a review and/or investigation.
"Hazardous Materials" as used in this HOME Grant Agreement and the other HOME Grant
Documents shall mean any hazardous or toxic materials, pollutants, effluents, contaminants,
radioactive materials, flammable explosives, chemicals known to cause cancer or reproductive toxicity,
emissions or wastes and any other chemical, material or substance, the handling, storage, release,
transportation, or disposal of which is or becomes prohibited, limited or regulated by any federal, state,
county, regionai or local authority or which, even if not so regulated, is or becomes known to pose a
hazard to the health and safety of the occupants of the Project Site and the Transitional Re-Entry Home
including, without limitation; (1) asbestos; (ii) petroleum and petroleum by-products; (iii) urea
formaldehyde foam insulation; (iv) polychlorinated biphenyls; (v) all substances now or hereafter
designated as "hazardous substances," "hazardous materials" or "toxic substances" pursuant to the
Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA"), 42
U.S.C. Section 9601, et seq., as amended by the Superfund Amendments and Reauthorization Act of
1986 ("SARA"), the Federal Water Pollution Control Act, 33 U.S.C. Section 1251, et seq. the Clean
Air Act, 42 U.S.C. Section 7401, et seq., the Hazardous Materials Transportation Act, 49 U.S.C.
Section 1801, et seq., or the Resource, Conservation and Recovery Act, 42 U.S.C. Section 6901, et
seq.; (vi) all substances now or hereafter designated as "hazardous wastes" in Section 25117 of the
California Health & Safety Code or as "hazardous substances" in Section 25316 of the California
Health & Safety Code; (vii) all substances now or hereafter designated by the Governor of the State of
California pursuant to the Safe Drinking Water and Toxic Enforcement Act of 1986 as being known to
cause cancer or reproductive toxicity; or(viii) all substances now or hereafter designated as "hazardous
substances," "hazardous materials" or "toxic substances" under any other federal, state or local laws or
in any regulations adopted and publications promulgated pursuant to said laws.
"Environmental Activities" as used in this HOME Grant Agreement shall mean the use,
generation, transportation, treatment, storage, or disposal of any Hazardous Materials at any time
located on or present on, under or about the Property.
ARTICLE VI
DISBURSEMENT OF HOME GRANT ADVANCE FUNDS
Section 6.1. Advances of HOME Grant Funds. Unless the Agency elects otherwise in the
Agency's sole discretion, each HOME Grant Advance shall be made in accordance with the following:
(1) at the time of the requested HOME Grant Advance, the Grantee must: (i) not be
in default under this HOME Grant Agreement; (ii) have cured any non-performance of any
event which, after notice thereof by the Agency, or with the passage of time or both, could
constitute a default or an Event of Default; and (iii) have met all requirements of any
governmental authority with regulatory authority pertaining to the Grantee, the Transitional Re-
Entry Home or the Project Site.
(2) subject to the provisions of this HOME Grant Agreement, each HOME Grant
Advance will be made by the Agency only for payment of those items shown in the
Improvement Construction Budget including funds in the agreed upon dollar amount for the
purchase of the Transitional Re-Entry Home.
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(3) disbursements of the Agency HOME Fund Grant Contribution proceeds for
construction items shall be made within thirty (30) calendar days after the Grantee's
compliance with the terms hereof.
(4) certification acceptable to the Agency from the Grantee, the Architect and the
General Contractor stating:
(i) the percentage of completion of the Improvements on a line item basis
(as such line items are identified in the Improvement Construction Budget) with respect
to each aspect of the cost of construction;
(ii) the costs to complete the Improvements in accordance with the Plans
approved by the Agency on a line item basis (as such line items are identified in the
Improvement Construction Budget for each phase of the Improvements); and
(iii) that all Improvements are constructed substantially in accordance with
the Plans approved by the Agency.
(5) appropriate lien releases from all contractors, subcontractors and materialmen
who were paid with the prior HOME Grant Advance disbursement, if applicable.
(6) a copy of the certification of the payroll records of the General Contractor and
each subcontractor prepared in accordance with Labor Code Section 1776 provided to the
Grantee by the General Contractor for the period of time covered by the current request for
disbursement.
Section 6.2. Grantee's Funds. Any money required in excess of the funds available to the
Grantee under the HUD Transitional Housing Grant Agreement and this HOME Grant Agreement to
fully pay all costs incurred in construction of the Improvements shall be provided by the Grantee as
"Grantee Funds" and the Grantee shall provide the Agency with evidence reasonably satisfactory to the
Agency that such Grantee Funds are available therefore, prior to the disbursement of any HOME Grant
Advance hereunder. The amount of the Grantee's initial equity contribution to the Improvements as
the Grantee Funds is set forth in the Improvement Construction Budget. In the event that the Agency
determines that either that the amount of the Grantee's construction contract(s) for the Improvements is
more than the amount authorized in the Improvement Construction Budget or that change orders to any
of the Grantee's construction contracts, may result in an increase of the amount shown in the
Improvement Construction Budget for the Improvements affected by such change order, the Grantee
shall provide the Agency with evidence reasonably satisfactory to the Agency that such additional
Grantee Funds are available to the Grantee within ten (10) calendar days after its receipt of the
Agency's written demand therefore. Notwithstanding any provisions to the contrary contained herein,
at no time shall the Agency be obligated to make any HOME Grant Advance hereunder if in the
Agency's judgment, it appears that for any reason the remaining undisbursed Agency HOME Fund
Grant Contribution will be insufficient to complete construction of the Improvements in accordance
with the Plans and for all financing and development costs to be incurred by the Grantee until such
time as the Grantee provides the Agency with satisfactory evidence that such additional money as, in
the Agency's judgment, will be sufficient to complete and fully pay the costs of the Improvements is
available to the Grantee and shall be advanced prior to the HOME Grant Advance funds unless the
Agency in its discretion otherwise determines. The Grantee hereby acknowledges and confirms that
the Grantee's Funds shall not constitute a trust fund and may be commingled with other monies of the
Grantee.
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Section 6.3. Remittance of HOME Grant Advance. Upon its confirmation that the
applicable conditions for a disbursement of a HOME Grant Advance have been satisfied by the
Grantee, the Agency shall remit the particular installment of the HOME Grant Advance in accordance
with the written instruction of the Grantee. The Agency may provide that all or a portion of a HOME
Grant Advance may be jointly payable to the Grantee and the General Contractor, as appropriate.
ARTICLE VII
HOME GRANT ADVANCE FOR THE ACQUISITION OF THE TRANSITIONAL
RE-ENTRY HOME
Section 7.1. Acquisition of the Transitional Re-Entry Home. The Grantee shall within
one hundred twenty (120) calendar days after the Effective Date of this HOME Grant Agreement
identify a single family residential property and submit copies of a sale and purchase agreement with
respect thereto. Such single family residential property may be the same property as identified in
Section 1.1 hereof or such other substitute single family residential property approved in the manner as
provided herein.
Section 7.2. Procedures for Deposit of Funds. That portion of the funds identified in this
HOME Grant Agreement to be used and applied for the purchase and acquisition of the Transitional
Re-Entry Home shall be disbursed in the manner as set forth in Section 1.1 and 3.1(14) for
disbursement to the Escrow Holder or Title Company upon written notification from such Escrow
Holder or Title Company that the escrow for the acquisition of the Transitional Re-Entry Home by the
Grantee is in a position to close such escrow within three (3) business days thereafter.
Section 7.3. Substitution of Property. In the event the Grantee elects to not close the
escrow for the purchase of the Transitional Re-Entry Home as initially identified in this HOME Grant
Agreement, the Grantee shall have the right to submit in writing a request to the Interim Executive
Director to approve such substitution of the actual property to constitute the Transitional Re-Entry
Home. Upon the written approval of the Interim Executive Director to approve such substitution of the
initially identified Transitional Re-Entry Home, the Grantee shall thereupon be required to cause the
close of escrow to occur within thirty(30) calendar days thereafter.
Section 7.4. Inspection of Transitional Re-Entry Home. The Agency shall have the right
to inspect the single family residential dwelling unit identified by the Grantee as the proposed
Transitional Re-Entry Home prior to the Grantee acquiring such single family residential dwelling unit
in part with the proceeds of the Agency HOME Fund Grant Contribution pursuant to this HOME Grant
Agreement. The Grantee shall give the Agency written notice of not less than twenty (20) calendar
days prior to any anticipated close of escrow for the proposed Transitional Re-Entry Home to allow the
Agency the opportunity to inspect said property for such number of on-site inspections as deemed
necessary by the Agency to assure compliance with all health and safety requirements, consistency
with the City of San Bernardino zoning and building codes and all other applicable City rules and
regulations. Such inspection or inspections may be conducted by the staff of the Agency, consultants
to the Agency or by City of San Bernardino employees at the option of the Agency.
Section 7.5. Failure to Timely Acquire Transitional Re-Entry Home. In the event the
Grantee has not acquired the Transitional Re-Entry Home by the close of escrow and the transfer of
title thereto into the name of the Grantee on or before twelve (12) from and after the Effective Date,
such amount of the HOME Grant Advance shall revert to the Agency for further use and disposition by
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the Agency without any further restrictions or limitations being imposed by this HOME Grant
Agreement. The Grantee agrees that in the event such acquisition of the Transitional Re-Entry Home
has not occurred by the date set forth above, the Grantee shall have no further claim or right to the use
of such portion of the HOME Grant Advance in the amount of$200,000 at anytime thereafter.
ARTICLE VIII
OPERATION OF TRANSITIONAL HOUSING FACILITY ON THE PROJECT SITE
AND THE TRANSITIONAL RE-ENTRY HOME
Section 8.1. Operation of Transitional Housing Facility. Promptly following (i) the
completion of the Improvements constituting the Project, or (ii) acquisition of the fee title to the
Transitional Re-Entry Home, the Grantee shall commence the operation of the Project and the
Transitional Re-Entry Home as transitional housing facilities on the Project Site and the Transitional
Re-Entry Home for low income persons and families in accordance with the descriptions of both the
Project and the Transitional Re-Entry Home. The Grantee shall operate such transitional housing
facilities for the HOME Affordability Period as set forth in the Agency HOME Covenant and shall
submit to the Agency on an annual basis the document attached to the Agency HOME Covenant as
Exhibit "B" thereto and entitled and described herein as the "GENERAL FORM OF HOME
PROGRAM RENTAL HOUSING CERTIFICATION/ANNUAL RECERTIFICATION OF TENANT
ELIGIBILITY" (the "Annual Tenant Certification Form"). Such Annual Tenant Certification From
shall be submitted on an annual basis commencing as of January 1, 2007, and annually thereafter as of
January 1 of each succeeding calendar year with respect to both the Project and the Transitional Re-
Entry Home to the extent either of both of said properties may then be owned and operated by the
Grantee as of any required date of certification.
Section 8.2. HOME Program Operating Covenants Relating to Transitional Housing
Facilities Operated on the Project Site and the Transitional Re-Entry Home.
(a) The Agency hereby authorizes the Grantee to establish reasonable residency durational
limits for its tenants at the transitional housing facilities operated by the Grantee on the Project Site as
part of the Project and for the Transitional Re-Entry Home. For the purposes hereof, the tenant
residency durational limits approved by HUD under the HUD Transitional Housing Grant Agreement
are hereby approved by the Agency.
(b) The Grantee hereby further covenants and agrees with the Agency that upon the
completion of the Improvements constituting the Project and the acquisition of the fee title to the
Transitional Re-Entry Home, as applicable, shall be used and reserved for use in accordance with-the
followings:
(1) Notwithstanding any other provision of 24 CFR Part 92.252(a) to the contrary,
the Grantee hereby covenants and agrees for itself and its successors and assigns that during the
HOME Affordability Period the Grantee shall use the Project and the Project Site for the
operation of at least a twenty (20) unit multifamily affordable transitional rental housing
facility reserved for occupancy by low income persons and families. As used herein the words
"Rental Unit" refers to each of(i) the twenty (20) affordable transitional rental housing facility
dwelling units in the Project and (ii) the three (3) units available for rental in the Transitional
Re-Entry Home. Furthermore, the Grantee similarly agrees to maintain the use and occupancy
of the Transitional Re-Entry Home as an affordable transitional rental housing facility for the
re-entry of tenants into the mainstream housing market, which shall be reserved for occupancy
by low-income persons and families.
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(2) During the HOME Affordability Period, each Rental Unit shall meet at a
minimum the HOME Program rental housing unit affordability requirements of 24 CFR Part
92.252(b), and the HOME Program rental housing unit affordability requirements applicable to
each of the Rental Units shall remain in full force and effect with respect to the Project
following the effective date of this Agreement during the HOME Affordability Period without
regard to any subsequent transfer of ownership of the Project or the Project Site or of the
Transitional Re-Entry Home.
(3) In the event that the Grantee may charge rent to a household for the occupancy
of any Rental Unit, the amount of rent payable by the household which occupies any such
Rental Unit shall not exceed an amount per month for such Rental Unit as determined in
accordance with 24 CFR Part 92.252(a) and (b), as applicable.
(4) The Grantee hereby agrees to comply with the rental housing unit certification
requirements of 24 CFR Part 92.203 during each year of the HOME Affordability Period for
each of the Rental Units as provided in 24 CFR Part 92.252, including confirmation of
compliance with the annual income certification requirements of 24 CFR Part 92.252(h) and
shall provide such annual reports to the Agency. The Grantee may use the general form of the
HOME Program Rental Housing Certification for such purposes in the form as attached to this
HOME Grant Agreement as Exhibit `B" to Exhibit "C".
(5) The Grantee shall comply with all applicable provisions of this HOME Grant
Agreement and the provision of the Agency HOME Covenant, and all federal regulations that
apply to the HOME Program and the Project during the HOME Affordability Period including:
(1) the maintenance of the Project Site and the Transitional Re-Entry Home and
each of the Rental Units in compliance with applicable Housing Quality
Standards;
(ii) the uniform administration requirements of 24 CFR Part 92.505; and
(iii) rental agreements by and between the Grantee and each resident/household shall
conform to the requirements of 24 CFR Part 92.253.
(6) The provisions of this HOME Grant Agreement and in particular, the specific
affordable rental housing regulatory covenants set forth in this Section 8.2, are declared by the
parties to be covenants which touch and concern the Property and shall run with the land for the
term of the Affordability Period as set forth in the Agency HOME Covenant.
ARTICLE IX
DEFAULT AND REMEDIES
Section 9.1. Event of Default. The occurrence of any of the following events shall
cJnstitute an Event of Default hereunder:
(1) Any breach by the Grantee of any of the covenants and conditions of this
HOME Grant Agreement or of the other HOME Grant Documents, which breach is not cured to
the Agency's reasonable satisfaction on or before the expiration of any applicable cure period
.et forth in the NOME Grant Documents.
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(2) Any representation, warranty or disclosure made to the Agency by the Grantee
proves to be materially false or misleading, and whether or not such representation or
disclosure appears in this HOME Grant Agreement.
(3) Any breach by the Grantee of any of the covenants and conditions of the HUD
Transitional Housing Grant Agreement which breach is not cured to the satisfaction of HUD on
or before the expiration of any applicable cure period set forth in the HUD Transitional
Housing Grant Agreement.
(4) The filing of any claim or lien or stop notice relating to the Project Site or the
Transitional Re-Entry Home or any part thereof provided, however, that no default shall exist
hereunder as long as the Grantee has fully complied with Section 5.4 of this HOME Grant
Agreement.
(5) Any material deviation in the work of construction of the Improvements from
the Plans without the approval of the Agency, or the appearance of defective workmanship or
materials, which deviations or defects are not corrected or substantially corrected within ten
(10)calendar days after receipt of written notice thereof from the Agency to the Grantee.
(6) The work of construction of the Improvements is delayed or suspended for a
period in excess of that permitted under Section 5.1(iv) hereof, or the work of construction does
not proceed with due diligence and in accordance with the schedule of completion subject to
Unavoidable Delay or is not completed by June 30, 2007, or such later date as the Agency may
elect.
(7) A stop notice is served on the Agency and is not released or an acceptable
counterbond provided to the Agency within fifteen (15) calendar days after the Grantee's
receipt of written notice from the Agency that such stop notice has been served on the Agency.
(8) There occurs any event which in the Agency's judgment materially adversely
affects (i) the ability of the Grantee to perform any of its obligations hereunder or under any of
the HOME Grant Documents, including, without limitation, the occurrence of any event of
dissolution or termination of the Grantee, or (ii) material adverse change in the business or
financial condition of the Grantee.
(9) The discovery of hazardous or toxic substances on, under or about the Project
Site or-the Transitional Re-Entry Home in violation of applicable laws or ordinances.
(10) The expenditure by the Grantee of any portion of the Agency HOME Fund
Grant Contribution on any item, other than the items listed on the Improvement Construction
Budget or the acquisition of the Transitional Re-Entry Home.
(11) The Grantee's failure to timely comply with the conditions and obligations
contained in Article V.
(12) The Grantee sells, transfers, hypothecates, encumbers or assigns its interest in
the Project Site or the Project or the Transitional Re-Entry Home, or any portion thereof,
whether voluntarily or involuntarily, or by operation of law in violation of any other applicable
restrictions.
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(13) The Grantee fails to promptly commence construction of the Improvements
within the time periods authorized in Section 5.1(iv), or fails to satisfy all of the conditions of
this HOME Grant Agreement with respect to disbursement of the Agency HOME Fund Grant
Contribution for costs of such construction, on or before the expiration of ninety (90) calendar
days after the date of this HOME Grant Agreement.
(14) There occurs a default by the Grantee beyond any applicable cure period under
the terms of the Grantee's construction agreement for the Improvements with the General
Contractor.
(15) There occurs a default under the Grantee's construction agreement by the
General Contractor, which is not cured by the General Contractor within any applicable cure
period thereunder.
(16) Failure to complete construction of the Improvements in accordance with the
Plans on or before March 1, 2006, subject to Unavoidable Delay.
Section 9.2. Remedies. Upon the occurrence of an Event of Default, the Agency may, in
addition to any other remedies which the Agency may have hereunder or under the HOME Grant
Documents or by law, at its option and without prior demand or notice but subject to the senior creditor
rights of HUD under the HUD Transitional Housing Grant Agreement, as applicable, take any or all of
the following actions:
(1) Immediately terminate any further advance of the Agency HOME Fund Grant
Contribution hereunder.
(2) Declare the Grant immediately due and payable and proceed to undertake all
available remedies after a default as provided in this HOME Grant Agreement.
(3) Enter upon the Project Site and complete construction of the Improvements in
accordance with the Plans with such changes therein as the Agency may from time to time and
in its judgment deem appropriate, all at the risk and expense of the Grantee. The Agency shall
have the right at any time to discontinue any work commenced by it in respect to the
Improvements or to change any course of action undertaken by it and not be bound by any
limitations or requirements of time whether set forth herein or otherwise. The Agency shall
have the right and power (but shall not be obligated) to assume any construction contract made
by or on behalf of the Grantee in any way relating to the Improvements and to take over and
use all or any part of the labor, materials, supplies and equipment contracted for by or on behalf
of the Grantee whether or not previously incorporated into the Improvements, all in the
discretion of the Agency. In connection with any work of construction undertaken by the
Agency pursuant to the provisions of this Section 9.2(3), the Agency may: (i) engage builders,
contractors, architects, engineers and others for the purpose of furnishing labor, materials and
equipment in connection with the work of construction; (ii) pay, settle or compromise all bills
or claims which may become liens against the Project Site or the Transitional Re-Entry Home
or which have been or may be incurred in any manner in connection with completing
construction of the Improvements or for the discharge of liens, encumbrances or defects in title
of the Project Site or the Transitional Re-Entry Home; (iii) take such other action, including the
employment of watchmen to protect the Improvements, or refrain from taking action under this
HOME Grant Agreement as the Agency may in its discretion determine from time to time. The
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Grantee shall be liable to the Agency for all sums paid or incurred for completing construction
of the Improvements, whether the same shall be paid or incurred pursuant to the provisions of
this Section 9.2(3) or otherwise, and all payments made or liabilities incurred by the Agency
hereunder of any kind whatsoever shall be paid by the Grantee to the Agency upon demand and
all of the foregoing shall be deemed and shall constitute advances under this HOME Grant
Agreement and be secured by the HOME Grant Documents. For the purpose of carrying out
the provisions and exercising the rights, powers and privileges granted by this Section 9.2(3)
hereof, the Grantee hereby unconditionally and irrevocably constitutes and appoints the
Agency its true and lawful attorney-in-fact to enter into such contracts, perform such acts and
incur such liabilities as are referred to in this Section 9.2(3) in the name and on behalf of the
Grantee. This power of attorney is coupled with an interest.
(4) Where substantial deviations from the Plans appear which have not been
approved as set forth herein, or defective or unworkmanlike labor or materials are being used in
the construction of the Improvements, the Agency shall have the right immediately to order
stoppage of the construction and demand that such condition(s) be corrected. After issuance of
such an order in writing, no further work shall be done on the Improvements where there is a
substantial deviation from the Plans which has not been approved as set forth herein or where
there is defective or unworkmanlike labor or materials, without the prior written consent of the
Agency unless and until said condition has been fully corrected.
(5) Foreclose on any security for the Agency HOME Fund Grant Contribution
without waiving its rights to proceed against other security or other entities or individuals
directly or indirectly responsible for repayment of the Agency HOME Fund Grant
Contribution, or waive any and all security for the Agency HOME Fund Grant Contribution as
the Agency may in its discretion so determine, and pursue any such other remedy or remedies
as the Agency may so determine to be in its best interest. All remedies of the Agency provided
for herein and in any other HOME Grant Document are cumulative and shall be in addition to
all other rights and remedies provided by law. The exercise of any right or remedy by the
Agency hereunder shall not in any way constitute a cure or waiver of default hereunder or
under any other HOME Grant Document or invalidate any act done pursuant to any notice of
default, or prejudice the Agency in the exercise of any of its rights hereunder or under any other
HOME Grant Documents unless, in the exercise of said rights, the Agency realizes all amounts
owed to it under such HOME Grant Documents.
ARTICLE X
MISCELLANEOUS
Section 10.1. No Waiver. No waiver of any default or breach by the Grantee hereunder shall
be implied from any failure by the Agency to take action on account of such default if such default
persists or is repeated, or from the Agency's finding of one or more advances of funds during a period
of time when the Grantee is in default or breach of its obligations hereunder, and no express waiver
shall affect any default other than the default specified in the waiver and shall be operative only for the
time and to the extent therein stated. Waivers of any covenant, term or condition contained herein
shall not be construed as a waiver of any subsequent breach of the same covenant, term or condition.
The consent or approval by the Agency to, or of, any act by the Grantee requiring further consent or
approval shall not be deemed to waive or render unnecessary the consent or approval to, or of, any
subsequent similar act.
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Section 10.2. Successors and Assigns. This HOME Grant Agreement is made and entered
into for the sole protection and benefit of the Agency and the Grantee, their successors and assigns,
and no other person or persons shall have any right of action hereunder. The terms hereof shall inure
to the benefit of the successors and assigns of the parties hereto; provided, however, that the Grantee's
interest hereunder cannot be assigned or otherwise transferred without the prior consent of the Agency
except as expressly permitted herein.
Section 10.3. Notices. All notices hereunder shall be in writing and sent by personal delivery,
nationally recognized overnight delivery service, certified or registered mail, return receipt requested,
or by facsimile transmission with a "hard" copy delivered within the next two (2) business days
addressed as follows:
If to the Grantee: Mary's Mercy Center, Inc.
P.O. Box 7563
San Bernardino, California 92411
If to the Agency: Redevelopment Agency of the City of San Bernardino
Attention: Interim Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 92401
(909) 663-1044
FAX: (909) 888-9413
Notices shall be deemed given upon receipt at the address set forth above. Notice of any changes of
address or of the person to whom notices are to be sent shall be given in the manner set forth in this
Section 10.3.
Section 10.4. Authority to File Notices. After an Event of Default, the Grantee irrevocably
appoints, designates and authorizes the Agency as its agent (said agency being coupled with an
interest) to file for record any Notices of Completion, Cessation of Labor, or file or send to any third
party any other notice or documents or take any other action that the Agency deems necessary or
desirable to protect its interest hereunder, or under the HOME Grant Documents, and will upon request
by the Agency, execute such additional documents as the Agency may require to further evidence the
grant of the aforesaid right to the Agency.
Section 10.5. Time. Time is of the essence hereof.
Section 10.6. Si ns. The Grantee shall place signs on the Project Site evidencing that HOME
Program funds are being provided by the Agency in support of the Project; provided, however, that the
Agency shall have first approved the text set forth on such signs.
Section 10.7. Attorney Fees. In the event that either party brings an action to enforce any
condition or covenant, representation or warranty arising out of this HOME Grant Agreement, the
prevailing party in such action shall be entitled to recover from the other party reasonable attorneys'
fees to be fixed by the court in which a judgment is entered, as well as the costs of such suit. For the
purposes of this Section 10.7, the words "reasonable attorneys' fees" in the case of the Agency include
the salaries, costs, and overhead of lawyers employed in the Office of the City Attorney of the City of
San Bernardino.
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Section 10.8. HUD Provisions. Notwithstanding anything herein to the contrary, in the event
that HUD may take title to the Project Site through foreclosure, deed-in-lieu of foreclosure, or
otherwise under the HUD Transitional Housing Grant Agreement, all covenants, conditions and
restrictions set forth in this HOME Grant Agreement shall upon the written request of HUD addressed
to the Agency cease and terminate and be of no further force or effect. Notwithstanding any statement
in this HOME Grant Agreement to the contrary, no provision of this HOME Grant Agreement shall be
effective without the prior written approval of HUD, if such prior approval of HUD is required under
the terms of the HUD Transitional Housing Grant Agreement. The provisions of this Section 10.8
shall not be applicable to the acquisition of the Transitional Re-Entry Home with the proceeds of the
Agency HOME Fund Grant Contribution pursuant to this HOME Grant Agreement.
Section 10.9. Amendments, Etc. No amendment, modification, termination or waiver of any
provision of this HOME Grant Agreement or of any of the HOME Grant Documents, nor consent to
any departure by Grantee therefrom, shall in any event be effective unless the same shall be in writing
and signed by the Agency, and then such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given.
Section 10.10. Headings. The article and section headings set forth herein are for reference
only and in no way define, limit, extend or interpret the scope of this HOME Grant Agreement or of
any particular article or section..
Section 10.11. Number and Gender. When the context in which the words are used in this
HOME Grant Agreement indicate that such is the intent, words in the singular number shall include the
plural and vice-versa. References to any one gender shall also include the other gender if applicable
under the circumstances.
Section 10.12. Validity. In the event that any provision of this HOME Grant Agreement shall
be held to be invalid, the same shall not affect in any respect whatsoever the validity of the remainder
of this HOME Grant Agreement.
Section 10.13. Governing Law. This HOME Grant Agreement shall be governed by and
construed in accordance with the laws of the State of California.
Section 10.14. Survival of Warranties. All agreements, representations and warranties made
herein shall survive the execution and delivery of this HOME Grant Agreement, of the HOME Grant
Documents, and the making of the Grant hereunder and continue in full force and effect until the
obligations of the Grantee hereunder have been fully satisfied.
Section 10.15. Incorporation of Exhibits. All Exhibits referenced herein and attached hereto
are incorporated into this HOME Grant Agreement by reference as if fully set forth herein.
Section 10.16. Venue and Forum. In the event that any legal action should be filed by either
party against the other, the venue and forum for such action shall be the Superior Court of the State of
California for the County of San Bernardino, San Bernardino District. Each of the persons and entities
who are shareholders or partners of the Grantee also agree to said venue and forum and further agree
that, if they are not residents of California at the time of such actions, service of process may be made
upon them by delivery via United States registered or certified mail.
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Section 10.17. Legal Relationships. The relationship between the Grantee and the Agency is
that of the Agency and Grantee in their respective separate capacities, and no partnership, joint
venture, or other similar relationship shall be inferred from this HOME Grant Agreement. The
Grantee shall not have the right or authority to make representations, to act, or to incur debts or
liabilities on behalf of the Agency. The Grantee is not executing this HOME Grant Agreement as an
agent or nominee for an undisclosed principal, and no third party beneficiaries are or shall be created
by the execution of this HOME Grant Agreement.
Section 10.19. Signatory Authority. Each individual executing this HOME Grant Agreement
on behalf of the Grantee represents and warrants that he/she is duly authorized to execute and deliver
this HOME Grant Agreement on behalf of the Grantee and that this HOME Grant Agreement is
binding on the Grantee in accordance with its terms. The Grantee shall, prior to the initial HOME
Grant Advance under this HOME Grant Agreement, deliver to the Agency a copy of a resolution of the
Grantee's governing body authorizing the execution of this HOME Grant Agreement.
IN WITNESS WHEREOF, the Grantee and the Agency have executed this HOME Grant
Agreement as of the date first written above by and through their duly authorized representatives.
GRANTEE
Mary's Mercy Center, Inc.,
a California non-profit public benefit corporation
Date: By:
By:
AGENCY
Redevelopment Agency
of the City of San Bernardino,
a public body, corporate and politic
Date: By:
Maggie Pacheco, Interim Executive Director
7 Ppr r ved As To Form:
I W/I jz-)/Y,/), Z--? I
Agency C nsel
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Section 10.17. Legal Relationships. The relationship between the Grantee and the Agency is
that of the Agency and Grantee in their respective separate capacities, and no partnership, joint
venture, or other similar relationship shall be inferred from this HOME Grant Agreement. The
Grantee shall not have the right or authority to make representations, to act, or to incur debts or
liabilities on behalf of the Agency. The Grantee is not executing this HOME Grant Agreement as an
agent or nominee for an undisclosed principal, and no third party beneficiaries are or shall be created
by the execution of this HOME Grant Agreement.
Section 10.19. Signatory Authority. Each individual executing this HOME Grant Agreement
on behalf of the Grantee represents and warrants that he/she is duly authorized to execute and deliver
this HOME Grant Agreement on behalf of the Grantee and that this HOME Grant Agreement is
binding on the Grantee in accordance with its terms. The Grantee shall, prior to the initial HOME
Grant Advance under this HOME Grant Agreement, deliver to the Agency a copy of a resolution of the
Grantee's governing body authorizing the execution of this HOME Grant Agreement.
IN WITNESS WHEREOF, the Grantee and the Agency have executed this HOME Grant
Agreement as of the date first written above by and through their duly authorized representatives.
GRANTEE
Mary's Mercy Center, Inc.,
a California non-profit public benefit corporation
yl Date: By:
By:
AGENCY
Redevelopment Agency
of the City of San Bernardino,
a public body, corporate and politic
Date: By:
Maggie Pacheco, Interim Executive Director
Approved As To Form:
Agency Co sel
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Section 10.17. Legal Relationships. The relationship between the Grantee and the Agency is
that of the Agency and Grantee in their respective separate capacities, and no partnership, joint
venture, or other similar relationship shall be inferred from this HOME Grant Agreement. The
Grantee shall not have the right or authority to make representations, to act, or to incur debts or
liabilities on behalf of the Agency. The Grantee is not executing this HOME Grant Agreement as an
agent or nominee for an undisclosed principal, and no third party beneficiaries are or shall be created
by the execution of this HOME Grant Agreement.
Section 10.19. Si2natory Authority. Each individual executing this HOME Grant Agreement
on behalf of the Grantee represents and warrants that he/she is duly authorized to execute and deliver
this HOME Grant Agreement on behalf of the Grantee and that this HOME Grant Agreement is
binding on the Grantee in accordance with its terms. The Grantee shall, prior to the initial HOME
Grant Advance under this HOME Grant Agreement, deliver to the Agency a copy of a resolution of the
Grantee's governing body authorizing the execution of this HOME Grant Agreement.
IN WITNESS WHEREOF, the Grantee and the Agency have executed this HOME Grant
Agreement as of the date first written above by and through their duly authorized representatives.
GRANTEE
Mary's Mercy Center, Inc.,
a California non-profit public benefit corporation
Date: By:
By:
AGENCY
Redevelopment Agency
of the City of San Bernardino,
a public body, corporate and politic
Date: By:
Maggie Pacheco, Interim Executive Director
Approved As To Form:
I 11
Agency C fUnsel
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EXHIBIT "A"
Project Site Legal Description and Property Address
Lots 26, 27, 289 51 and 52 of Tract 3137, in the City of San Bernardino, County of San Bernardino,
State of California, as per plat recorded in Book 42 of maps, page 86 records of said County.
SEC Western and Victoria Streets
San Bernardino, California 92411
Legal Description of Transitional Re-Entry Home
Lot 30 of Tract 3137, in the City of San Bernardino, County of San Bernardino, State of California, as
per plat recorded in Book 42 of maps, page 86 records of said County.
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EXHIBIT "B"
AWN
3
Improvement Construction Line Item Budget
I. Base Construction Cost $1,672,000 (includes professional fees)
2. Fire Sprinkler Costs $45,000
3. Water Service in Street $85,000
4. Street Repair Work $120,000
5. Fire Hydrant $15,000
6. Street Lights $20,000
7. Parking Lot Lights and Perimeter Wall $20,000
8. City Fees $200,000
9. Increase for time to commence $250,000
Estimated Grand Total: $2,427,000
a
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EXHIBIT "C"
l Agency HOME Covenant
including Exhibit "B" thereto entitled
"General Form of HOME Program Rental Housing Income Certification"
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RECORDING REQUESTED BY AND )
WHEN RECORDED MAIL TO: )
Redevelopment Agency )
of the City of San Bernardino )
201 North "E" Street, Suite 301 )
San Bernardino, California 92401 )
Attn.: Interim Executive Director )
(Space above line reserved for use by Recorder)
Recording Fee Exempt Pursuant to Government Code Section 6103
2005
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
HOME PROGRAM REGULATORY AGREEMENT AND
PROJECT SITE AND TRANSITIONAL RE-ENTRY HOME USE COVENANT
(San Bernardino Grantee Assessor Parcel No. )
-- VERONICA'S HOME OF MERCY PROJECT OF MARY'S MERCY CENTER, INC. --
THIS 2005 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO HOME
PROGRAM REGULATORY AGREEMENT AND USE COVENANT (the "Agency HOME
Covenant") is dated as of 2005, by and between Mary's Mercy Center, Inc., a California
non-profit public benefit corporation (the "Grantee") and the Redevelopment Agency of the City of
San Bernardino, a public body corporate and politic (the "Agency") as the affordable rental housing
administration agency of the City of San Bernardino (the "City"), with respect to the following facts
set forth in the RECITALS of this Agency HOME Covenant:
-- RECITALS --
1. This Agency HOME Covenant affects the Project Site located at ,
San Bernardino, California (the "Project Site") and that certain house owned by the Grantee located at
, San Bernardino, California (the "Transitional Re-Entry House"). The Project Site
and the Transitional Re-Entry Home shall be used and reserved for use and occupancy as affordable
multifamily rental, reserved for occupancy by persons or households of Very Low Income as set forth
herein. A legal description and street address of the Project Site and the Transitional Re-Entry Home
are attached herein as Exhibit "A".
2. The Grantee is the owner of the Project Site and the Transitional Re-Entry Home.
3. The Grantee obtained a substantial portion of the proceeds for its construction and
installation on the Project Site of an affordable rental housing facility from the Agency pursuant to the
terms and conditions of an agreement entitled "HOME Grant Agreement", dated as of December 19,
2005 (the "HOME Grant Agreement") by and between the Grantee and the Agency.
4. The Grantee and the Agency have caused this Agency HOME Covenant to be recorded
as a covenant which affects the Project Site and the Transitional Re-Entry Home and which runs with
the land for the term set forth herein in order to implement certain provisions of the "HOME Program"
48464224-2560.1 32
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with respect to the "Project" and the "Transitional Re-Entry Home", as these terms are defined in the
HOME Grant Agreement, and the implementing regulations of the United States Secretary of the
Department of Housing and Urban Development (herein "HUD"). Attached hereto as Exhibit "B" is
the document entitled "General Form of HOME Program Rental Housing Income Certification" which
shall be used by the Grantee in the manner required in Section 8.1 of the HOME Grant Agreement for
the certification of the tenants as to eligibility for residency in the Project and the Transitional Re-
Entry Home.
MARY'S MERCY CENTER, INC. AND THE AGENCY FOR THEMSELVES, AND THEIR
SUCCESSORS AND ASSIGNS, HEREBY COVENANT AND AGREE AS FOLLOWS:
Section 1. Incorporation by Reference of HOME Grant Agreement. The provisions of
the HOME Grant Agreement are hereby incorporated into this Agency HOME Covenant by this
reference. A true and correct copy of the HOME Grant Agreement is on file with the Agency
Secretary of the Redevelopment Agency of the City of San Bernardino as a public record, and
interested persons may inspect the HOME Grant Agreement during regular business hours of the
Agency Secretary.
Unless the context of the usage of a particular defined term as used in this Agency HOME
Covenant may specifically require, the meaning of all defined terms as used in this Agency HOME
Covenant shall have the same meaning as set forth in the HOME Grant Agreement.
Section 2. Term of Agency HOME Covenant. Unless sooner terminated as set forth in
Section 7, below, this Agency HOME Covenant shall have a term, which ends on the earlier of the
following dates to occur:
(i) fifty-five (55) years following the date of recordation of this Agency HOME
Covenant separately as to the Project and as to the Transitional Re-Entry Home; or
(ii) on the fifty-fifth (55`h) anniversary following (i) the recordation of a Notice of
Completion for the work of improvements on the Improvements as set forth in the HOME
Grant Agreement with respect to the Project, and (ii) the acquisition of the fee title to the
Transitional Re-Entry Home.
The term of this Agency HOME Covenant is also referred to in both the HOME Grant
Agreement and herein as the "HOME Affordability Period".
Section 3. Agenev HOME Covenant; Use-of the Proiect Site and Transitional Re-
Entry Home. During the term of this Agency HOME Covenant (e.g.: the HOME Affordability
Period), the Project Site and the Transitional Re-Entry Home shall be used or reserved by use and
occupancy by Very Low Income Households in compliance with the HOME Grant Agreement. The
Grantee shall complete the form attached hereto as Exhibit "B" and designated as the "General Form
of HOME Program Rental Housing Income Certification" and obtain all required information as
requested therein by the dates and times required herein and in the HOME Grant Agreement and
submit same to the Agency in a timely manner. Said form shall be submitted on an annual basis
commencing as of January 1, 2008, and annually thereafter as of January 1 of each succeeding
calendar year with respect to both the Project and the Transitional Re-Entry Home to the extent either
of both of said properties may then be owned and operated by the Grantee as of any required date of
certification and subject to the provisions of this Agency HOME Covenant.
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Section 4. Agency HOME Covenant--Business and Compliance Records.
(a) During the HOME Affordability Period, certain business records must be established
and maintained in accordance with the provisions of 24 CFR Part 92.500 and 24 CFR Part 92.252
which relate to the use of the Project Site and the Transitional Re-Entry Home for the affordable rental
housing facility use purposes authorized under Section 3 of this Agency HOME Covenant and the
HOME Grant Agreement. The Grantee shall be responsible for establishing and maintaining such
records and the Grantee shall provide the Agency with copies of such records within thirty (30)
calendar days after written request by the Agency.
(b) The Grantee and all persons in possession of the Project Site and the Transitional Re-
Entry Home shall permit the Agency to conduct inspections of the Project Site and the Transitional Re-
Entry Home from time-to-time for purposes of verifying compliance with this Agency HOME
Covenant upon thirty(30) calendar days prior written notice to the Grantee.
Section 5. RESERVED—NO TEXT
Section 6. Early Termination of Agency HOME Covenant.
(a) This Agency HOME Covenant shall remain in effect during the HOME Affordability
Period unless sooner terminated in the sole and absolute discretion of the Grantee as set forth in this
Section 6.
(b) In accordance with 24 CFR Part 92, the Grantee may determine that the continued use
of the Project Site and the Transitional Re-Entry Home for the affordable rental housing purposes
described in Section 3 of this Agency HOME Covenant, is no longer necessary or appropriate. In such
an event, the Grantee shall give the Agency at least ninety(90) calendar days prior written notice of its
intention to consider such a determination. Such written notice of the Grantee shall include a reference
to Section 6(b) of this Agency HOME Covenant.
(c) In the event that the Grantee may determine to use the Project Site or the Transitional
Re-Entry Home for a purpose other than as described under Section 3 of this Agency HOME
Covenant, the Grantee shall reimburse the Agency for the account of the City a sum equal to the
amount in cash derived by the application of the following formula:'
(1) Amount payable to the Agency equals the sum of"A" plus interest calculated at
-the rate of six (6%) per annum, covering the date when the Notice of Completion is
recorded through the date on which the Grantee remits the sum indicated by this
formula to the Agency.'
(d) The Grantee shall pay to the Agency the sum indicated in Section 6(c)(i) within ninety
(90) calendar days following the date on which the Grantee may complete the actions necessary to
terminate the affordable rental housing facility use restriction affecting the Project Site and the
Transitional Re-Entry Home as described in Section 3. Concurrently, upon receipt of such sum, the
Agency shall deliver to the Grantee a written acknowledgment of cancellation and discharge of this
Agency HOME Covenant in recordable form acceptable to the Grantee, which has been duly executed
by authorized officers of the Agency.
' Notes for Section 6(c) above.
"A"= Agency HOME Program funds disbursed for the Project.
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I •
Section 7. Covenant Against Unlawful Discrimination. No person shall, on the grounds
of race, sex, creed, color, religion, or national origin, be excluded from participating in or be refused
the benefits of or otherwise subjected to discrimination in connection with the use of the Project Site
and the Transitional Re-Entry Home.
Section 8. Maintenance Condition of the Project Site and Transitional Re-Entry
Home. The Grantee for itself, its successors and assigns hereby covenants and agrees that the areas of
the Project Site and the Transitional Re-Entry Home, which are subject to public view (including all
existing improvements, paving, walkways, landscaping, exterior signage and ornamentation) shall be
maintained in good repair and a neat, clean and orderly condition, ordinary wear and tear excepted. In
the event that at any time during the HOME Affordability Period of this Agency HOME Covenant
there is an occurrence of an adverse condition on any area of the Project Site or the Transitional Re-
Entry Home which is subject to public view in contravention of the general maintenance standard
described above (a "Maintenance Deficiency"), then the Agency shall notify the Grantee in writing of
the Maintenance Deficiency and give the Grantee sixty (60) calendar days from and after the receipt of
such notice to cure the Maintenance Deficiency as identified in the notice. In the event the Grantee
fails to cure or commence to cure the Maintenance Deficiency within the time allowed, the Agency
may conduct a public hearing following transmittal of written notice thereof to the Grantee ten (10)
calendar days prior to the scheduled date of such public hearing in order to verify whether a
Maintenance Deficiency exists and whether the Grantee has failed to comply with the provision of this
Section 8. If upon the conclusion of a public hearing, the Agency makes a finding that a Maintenance
Deficiency exists and that there appears to be non-compliance with the general maintenance standard,
described above, thereafter the Agency shall have the right to enter the Project Site or the Transitional
Re-Entry Home, as applicable, and perform all acts necessary to cure the Maintenance Deficiency, or
to take other action at law or equity the Agency may then have to accomplish the abatement of the
Maintenance Deficiency. Any sum expended by the Agency for the abatement of a Maintenance
Deficiency on the Project Site or the Transitional Re-Entry Home authorized by this Section 8 shall be
paid to the Agency within thirty (30) calendar days after written demand for payment by the Agency to
the Grantee.
Section 9. Notice, Defaults and Breach - General. Failure or delay by either party to
perform any material teen or provision of this Agency HOME Covenant or the HOME Grant
Agreement shall constitute a default hereunder; provided however, that if the party who is otherwise
claimed to be in default by the other party commences to cure, correct or remedy the alleged default
within thirty (30) calendar days after receipt of written notice specifying such default and shall
diligently complete such cure, correction or remedy, such party shall not be deemed to be in default
hereunder.
The party, which may claim that a default has occurred shall give written notice of default to
the party in default, specifying the alleged default. Delay in giving such notice shall not constitute a
waiver of any default nor shall it change the time of default; provided, however, the injured party shall
have no right to exercise any remedy for a default hereunder without delivering the written default
notice as specified herein.
Any failure to delay by a party in asserting any of its rights and remedies as to any default shall
not operate as a waiver of any default or of any rights or remedies associated with a default. Except
with respect to rights and remedies expressly declared to be exclusive in this Agency HOME
Covenant, the rights and remedies of the parties are cumulative and the exercise by either party of one
or more of such rights or remedies shall not preclude the exercise by it, at the same or different times,
of any other rights or remedies for the same default or any other default by the other party.
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In the event that a default of either party may remain uncured for more than thirty (30) calendar
days following written notice, as provided above, a "breach" shall be deemed to have occurred. In the
event of a breach, the party who is not in default shall be entitled to seek any appropriate remedy or
damages by initiating legal proceedings.
For the purposes of giving notice under any provision of this Agency HOME Covenant, the
addresses to which such notice shall be transmitted are as follows:
For Grantee: For Agency:
Redevelopment Agency of the City of San Bernardino
Attn.: Attn.: Interim Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 92401
Section 10. Agency HOME Covenant Runs With the Land. The provisions of this
Agency HOME Covenant shall be covenants, which run with the land and the Project Site and the
Transitional Re-Entry Home for the HOME Affordability Period. This Agency HOME Covenant is
expressly declared by the parties to be for the benefit of the Project Site and the Transitional Re-Entry
Home and the redevelopment project area of the Mt. Vernon Redevelopment Project.
IN WITNESS HEREOF, the parties authorized officers of the parties have caused this Agency
HOME Covenant to be executed on the dates indicated below.
GRANTEE
Mary's Mercy Center, Inc.,
a California non-profit public benefit corporation
Date: By:
[NOTARY JURAT ATTACHED]
AGENCY
Redevelopment Agency of the City of San Bernardino
a public body, corporate and politic
Date: By:
Chair of the Community Development Commission
By:
Maggie Pacheco, Interim Executive Director
Approved As to Form:
Agency Counsel
[NOTARY JURAT ATTACHED]
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EXHIBIT "B"
to the Agency HOME Covenant
General Form of HOME Program Rental Housing Income Certification
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GENERAL FORM
HOME PROGRAM RENTAL HOUSING
CERTIFICATION/ANNUAL RECERTIFICATION OF TENANT ELIGIBILITY
Rental Unit: Bedroom Size:
Street Address: Unit No.:
City: Zip Code:
I/We, the undersigned, being first duly sworn, state that I/we have read and answered fully and
truthfully each of the following questions for all persons who are to occupy the unit in the above
apartment development for which application is made, all of whom are listed below:
HOUSEHOLD Age Ethnicity Social Security# Place of
Employment
Name of Members Relationship
Date of Occupancy of Rental Unit by Tenant:
Date of Lease Signed for Rental Unit by Tenant:
Certification Date (Earlier of Date of Occupancy or Date Lease Signed):
Anticipated Annual Income
The anticipated total annual income from all sources of each person listed in above for the twelve
month period beginning on the Certification Date listed above, including income described in(a)
below, but excluding all income described in (b) below, is S
(a) The amount set forth above includes all of the following income (unless such income is
described in(b) below):
(i) all wages and salaries, overtime pay, commissions, fees, tips and bonuses before payroll
deductions;
(ii) net income from the operation of a business or profession or from the rental of real or
personal property (without deducting expenditures for business expansion or
amortization of capital indebtedness or any allowance for depreciation of capital assets);
(iii) interest and dividends (including income from assets as set forth in item (b)below);
(iv) full amount of periodic payments received from Social Security, annuities, insurance
policies, retirement funds, pensions, disability or death benefits and other similar types
of periodic reports;
(v) payments in lieu of earnings, such as unemployment and disability compensation,
worker's compensation, and severance pay;
4846-4224-2560.1
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P Agmdas.Agmda Attachmcros Agrmts-Amrnd 200905-12-19 Map's Mac)HOME Agreemrnt Final do
(vi) the maximum amount of public assistance available to the above persons;
(vii) periodic and determinable allowances, such as alimony and child support payments and
regular contributions and gifts received from persons not residing in the dwelling;
(viii) all regular pay, special pay and allowances of a member of the Armed Forces (whether
or not living in the dwelling) who is the head of the household or spouse; and
(ix) any earned income tax credit to the extent it exceeds income tax liability.
(b) The following income is excluded from the amount set forth above:
(1) casual, sporadic, or irregular gifts;
(ii) amounts that are specifically for or in reimbursement of medical expenses;
(iii) lump sum additions to family assets, such as inheritances, insurance payments
(including payments under health and accident insurance and worker's compensation),
capital gains and settlement for personal or property losses;
(iv) amounts of educational scholarships paid directly to student or educational institution,
and amounts paid by the goverrunent to a veteran for use in meeting the costs of tuition,
fees, books and equipment, but in either case only to the extent used for such purposes;
(v) hazardous duty pay to a member of the household in the armed forces who is away from
home and exposed to hostile fire;
(vi) relocation payments under Title II of the Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970;
(vii) income from employment of children (including foster children) under the age of 18
years,
(viii) foster child care payments;
(ix) the value of coupon allotments under the Food Stamp Act of 1977;
(x) payments to volunteers under the Domestic Volunteer Service Act of 1973;
(xi) payments received under the Alaska Native Claims Settlement Act;
(xii) income derived from certain submarginal land of the United States that is held in trust
for certain Indian tribes;
(xiii) payments on allowances made under the Department of Health and Human Services'
Low-Income Home Energy Assistance Program; and
Y>'vl payments r ece ived from the Job Partnership Training Act.
39
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gmda Agmda Attachm is�Agrmts-Amrnd 2001 ,M-1:-IV Mary's Macy HOME Agreement hmal d�
Net Family Assets
E If any of the persons described in Members of the Household (or any person whose income or
contributions were included in Anticipated Annual Income has any savings, stocks, bonds, equity in
real property or other form of capital investment (excluding interest in Indian trust lands), provide:
(a) the total value of all such assets owned by all such persons: $ , and
(b) the amount of income expected to be derived from such assets in the 12-month period
commencing this date: $
Students
(a) Will all of the persons listed in Members of Household above be or have they been fulltime
students during five calendar months of this calendar year at an educational institution (other
than a correspondence school) with regular faculty and students?
❑ Yes ❑ No
(b) If yes, is any such person (other than non-resident aliens) married and eligible to file a joint
federal income tax return? ❑ Yes ❑ No
The above information is full, true, and complete to the best of my knowledge. I have no objections to
inquiries being made for the purpose of verifying the statements made herein.
F
I acknowledge that all of the above information is relevant to the status under federal law of the
HOME funds used in the acquisition and rehabilitation of the Project for which application is being
made. I consent to the disclosure of such information to the Economic Development Agency of the
City of San Bernardino, County, State and Federal Department of Housing and Urban Development or
agent acting on their behalf and any authorized agent of the Treasury Department or Internal Revenue
Service.
Date: Signature:
(Signature Must be Notarized)
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FOR COMPLETION BY ONLY:
A. Calculation of Eligible Income
(1) Enter amount entered for entire household in Anticipated Annual Income: $
(2) If the amount entered in (a) of Net Family Assets above is greater than $5,000, enter:
(1) the product of the amount entered in (a) of Net Family Assets above multiplied by the
current passbook savings rate as determined by HUD $
(ii) the amount entered in (b) of Net Family Assets above: $
(iii) enter the greater of line (i) or line (ii): $
(3) TOTAL ELIGIBLE INCOME (Line A (1) plus line A (2) (iii)] $
B. Enter Number of family members listed in item I above:
C. The amount entered in A (3) (Total Eligible Income) is $
❑ Less than $ of median income for the area in which the Project is located, which is the
maximum income at which a household may be determined to be a Qualifying Tenant as that
term is defined in the Grant Agreement and Declaration of Restrictive covenants (the
"Regulatory Agreement") ('Qualifying Tenant').
❑ More than the above-mentioned amount.
D. Number of apartment units assigned:
E. Monthly Rent: $
F. This apartment unit (was/was not) last occupied for a period of thirty one (3 1) consecutive calendar
days by a person or persons whose adjusted income, as certified in the above manner, was equal to
or less than the amount at which a person would have qualified as a Qualifying Tenant under the
terms of the Regulatory Agreement.
G. Applicant:
❑ Qualifies as a Qualifying Tenant, household income is at or below 50% of the area
median income
❑ Qualifies as a Qualifying Tenant, household income is at or below 60% of the area
median income
❑ Qualifies as a Qualifying Tenant, household income is at or below 80% of the area
median income
❑ Does Not Qualify as a Qualifying Tenant
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ECONOMIC DEVELOPMENT AGENCY ORIGINAL
OF THE CITY OF SAN BERNARDINO
FROM: Maggie Pacheco SUBJECT: Implementation of a Homebuyer Assistance
Interim Executive Director Program - California State University San
Bernardino
DATE: December 12,2005
Synopsis of Previous Commission/Council/Committee Action(s):
On November 21, 2005, at the meeting of the Community Development Commission, the Homebuyer Assistance Program
for California State University San Bernardino failed by a vote of 3-3.
On November 8,2005,Redevelopment Committee Chairperson,Estrada forwarded this item to the Community Development
Commission without a recommendation due to a lack of a quorum.
- ------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------
Recommended Motion(s):
(Community Development Commission)
Motion: That the Community Development Commission a pp rove the Implementation of the Homebuyer Assistance
Program for California State University San Bernardino
-------------------------------------------------------- ----------------------------------------------------------------------------------------------------------
Contact Person(s): Maggie Pacheco Phone: (909)663-1044
Project Area(s): City Wide Ward(s): 1-7
Supporting Data Attached: R1 Staff Report❑Resolution(s)❑Agreement(s)/Contract(s)❑Map(s) ❑Letters
1,000,000
Annually for
FUNDING REQUIREMENTS: Amoun $ 2 Years Source: Low/Mod Funds
Budget Authority: See Fiscal Impact
i
SIGNATURE: p �
Maggie Pacheco,Interim Executive Director ` Barbara Lindseth,Director Admin. Services
i
S
Commission/Council Notes:
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P:Wgendas\Comm Dev Commission\CDC 2005\05-12-19 CSUSB HAP 2.doc COMMISSION MEETING AGENDA
Meeting Date: 12/19/2005
Agenda Item Number: OJ
.*wrw.rwriwroeYrarrrm
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
IMPLEMENTATION OF A HOMEBUYER ASSISTANCE PROGRAM-
CALIFORNIA STATE UNIVERSITY SAN BERNARDINO
Background
On November 21, 2005, at the meeting of the Community Development Commission, the Homebuyer
Assistance Program for California State University San Bernardino failed by a vote of 3-3. This item
is being placed on the agenda for recommendation at the request of Councilperson Longville.
Current Issue•
On October 3, 2005, City and Agency staff met with Dr. Kamig and other faculty members from
California State University San Bernardino (CSUSB) to discuss developing a program specifically
geared to assist entry-level professors with a purchase of a home in the City with assistance from both
the Agency and CSUSB.
With the median price of a home in the Riverside/San Bernardino County averaging $350,000, an
entry-level faculty member will experience difficulty in purchasing a home. In CSUSB's efforts to
recruit educators, the majority coming from outside of California, the high price of housing is a major
obstacle in CSUSB's recruitment in highly educated professionals to its University and its relocation
process. CSUSB is currently recruiting educators to fill 40 positions at the University. The positions
will be entry-level at the following beginning salaries:
POSITION BEGINNING SALARY
Assistant Professor $53,000
Associate Professor $66,000
Full Professor $82,500
Consequently, the homebuyer assistance program outlined below was jointly developed by Agency
and CSUSB Staff.
PROGRAM OUTLINE:
• Educator must be income qualified and meet the income limits as per State Law. The annual
income of a family/household cannot exceed 120% of area median income as shown below.
Family Size *Maximum Annual Family Size *Maximum Annual Income
Income
1 $46,750 5 $72,150
2 $53,450 6 $77,500
3 $60,100 7 $82,850
4 $66,800 8 $88,200
t California Association of Realtors,September 2005
*These incomes are_subject to annual_revisions,_adjusted-for-family-size------------------------------------------------------------------------------------------------------
PADevelopment Dept\t isa\05-12-19 CSUSB HAP 2.doc COMMISSION MEETING AGENDA
Meeting Date: 11/21/2ff005
Agenda Item Number: !�-vJ
Economic Development Agency Staff Report
Homebuyer Assistance Program—CSUSB
Page 2
• Program will be open to all new educators and faculty currently employed at CSUSB who do
not own a home, or who are renting, and purchase a home in the City.
• Homebuyer must contribute $1,000 out-of-pocket towards down payment, plus closing costs
and must attend an approved 16-hour Homebuyer Education Program.
• The loan amount by the Agency to the homebuyer will be up to 20% of the purchase price of
the home, but not to exceed $70,000, accruing 3% interest a year. (3.5% of the 20% loan
assistance can be applied towards closing costs. The homebuyer will more than likely pay
average closing costs of about $7,000 depending on the loan amount). (Funds will be reserved
for an eligible homebuyer for up to 2 years).
• The maximum purchase price is based on the Affordable Housing Cost (AHC), as set forth in
Health & Safety Code Section 50052.5(b)(4), and the educator's ability to pay. For example:
A family of four with a gross income of$66,800 may not expend more than $1,948.33 a month
for total housing expenses, including principle & interest, insurance, property taxes and utilities
(translates to a maximum purchase price of approximately $350,000, assuming a down
payment of$70,000).
• The loan assistance, plus interest, will be forgiven after ten (10) years with a ten percent (10%)
forgiveness credit factor given for each year the educator remains in the home. [Should an
educator not be retained by CSUSB during the 10-year loan term, and must sell the home in
year 5, the educator would receive a 50% credit deduction from the original down payment and
interest. Educators who are not retained by CSUSB, but remain in the home for the duration of
the loan term will not be required to repay the loan before the 10-year term.]
• During the ten (10) year loan term, conditions that will cause loan to become due and payable
to the Agency(except for the forgiveness credit factor provisions above) are: (1) When home is
sold to an non-eligible successor-in-interest; (2) When home is refinanced to take cash out or
consolidate debt; and (3) When home ceases to be educator's primary residence. The Loan can
be assumed by an income-qualified successor-in-interest who meets program criteria. The
Covenant also requires property to remain affordable and maintained, in addition to above three
conditions.
The uniqueness of this program is that the educator must live and work in San Bernardino for the
duration of the loan with a maximum loan amount of$70,000. Because of the length of time it may
take to recruit faculty/educators to CSUSB, Dr. Karnig has requested that the Agency reserve at least
$2 million for 2 years for the proposed homebuyer program. CSUSB, through the State Public
Employees Retirement System (PERS), will have access to primary mortgage loan products that offer
interest rates at .025% below market rate. The California State University system, through a master
agreement with Citimortgage, will also have affordable primary mortgage products available to
CSUSB faculty. Moreover, the University will seek private endowment funding which can be
employed to further subsidize faculty housing.
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P:\Development Dept\Lisa\05-12-19 CSUSB HAP 2.&c COMMISSION MEETING AGENDA
Meeting Date: 12/19/2005
Agenda Item Number: ' �, :)
Economic Development Agency Staff Report
Homebuyer Assistance Program—CSUSB
Page 3
CSUSB plays a critical role in preparing its students for the job market by offering up-to-date skills
and knowledge through its commitment to recruiting highly trained educators and faculty and
encourages its educators to live in the community they work in.
In closing, the proposed program will give CSUSB a valuable tool to use in its efforts to recruit quality
faculty to assist in building a stronger university. As CSUSB continues to promote educational, social,
economic, and cultural advancement in the region, this tool is important in assisting CSUSB realize its
vision of becoming one of the leading comprehensive universities in the nation.
ENVIRONMENTAL IMPACT:
None.
FISCAL IMPACT:
The Agency will set aside $1,000,000 in Low/Moderate Housing Funds annually for two (2) years
commencing in budget year 2005/2006. Funds are subject to availability and program success.
RECOMMENDATION:
That the Community Development Commission adopt the Motion.
a
Maggie Pacheco, Interim Executive Director
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PADevelopment Dept\Lisa\05-12-19 CSUSB HAP 2.doc COMMISSION MEETING AGENDA
Meeting Date: 12/19/2005
Agenda Item Number: J