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HomeMy WebLinkAboutCDC/1999-31 , . 1 RESOLUTION NO: eDe 1999-31 2 -' , 3 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION APPROVING AND AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE AN AGREEMENT BETWEEN NEIGHBORHOOD HOUSING SERVICES AND THE AGENCY IN THE AMOUNT OF $500,000 TO IMPLEMENT THE SINGLE FAMILY HOME IMPROVEMENT AND BEAUTIFICATION GRANT PROGRAM AS SET FORTH HEREIN 4 5 6 7 THE COMMUNITY DEVELOPMENT COMMISSION ACTING ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS: 8 9 10 SECTION 1. The Executive Director of the Redevelopment Agency ("Agency") is hereby authorized and directed to execute on behalf of said Agency an Agreement between the Agency and Neighborhood Housing Services of the Inland Empire Inc., (NHSIE) in order to allocate the sum of $500,000 from the Agency's Low and Moderate Income Housing Fund to NHSIE to implement a Single Family Home Improvement and Beautification Grant Program as per the provisions of the Agreement, a copy of which is attached hereto, marked Exhibit "A" and incorporated herein by reference as though fully set forth at length. SECTION 2. The Executive Director of the Agency is hereby authorized to make minor 11 12 13 14 15 16 17 18 corrections, additions, and clarifications to the Agreement, provided said changes are not substantive in nature, and do not increase the monetary impact to the Agency. SECTION 3. The authorization to execute the above referenced Agreement is rescinded if the parties to the Agreement fail to execute it within sixty (60) days of the passage of this 19 20 21 22 resolution. 23 24 1111 III1 I1II I1II II1I IIII 25 26 27 28 CDC 1999-31 4 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION APPROVING AND AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE AN AGREEMENT BETWEEN NEIGHBORHOOD HOUSING SERVICES AND THE AGENCY IN THE AMOUNT OF $500,000 TO IMPLEMENT THE SINGLE FAMILY HOME IMPROVEMENT AND BEAUTIFICATION GRANT PROGRAM AS SET FORTH HEREIN 1 2 3 5 I HEREBY CERTIFY that the foregoing resolution was duly adopted by Community 6 Development Commission of the City of San Bernardino at a joint regular meeting 7 thereof, held on 7th day of September , 1999 by the following vote, to wit: 8 9 ABSTAIN ABSENT COMMISSION MEMBERS: AYES NAYS 10 ESTRADA x 11 LIEN X 12 MCGINNIS x 13 SCHNETZ X 14 VACANT - 5th Ward ANDERSON 15 MILLER 16 x ----Jf_ 17 18 19 20 21 22 23 24 25 26 27 By: 28 {21:d..d. ~ Cit}clerk The foregoing resolution is hereby approved this t?/aay opeptember ,1999. th Valles, Chairperson Co munity Development Commission o the City of San Bernardino CDe 1999-31 , . 1999 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AGREEMENT FOR THE SINGLE F AMIL Y HOME IMPROVEMENT AND BEAUTIFICATION REHABILITATION LOANS AND GRANTS PROGRAM ORIGINATION AND SERVICE ASSISTANCE (Agency Low-and Moderate Income Home Funds) THIS 1999 AGREEMENT FOR THE SINGLE F AMIL Y HOME IMPROVEMENT AND BEAUTIFICATION REHABILITATION LOANS AND GRANTS PROGRAM ORIGINATION AND SERVICE ASSISTANCE is made and entered into as of September _, 1999, by and between the NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE, INC., a California non-profit corporation (the "Consultant") and the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (the "Agency") and is related to the facts set forth in the following RECITALS: - - RECITALS -- 1. The Agency has established an affordable housing improvement program known as the "Single Family Home Improvement and Beautification Loans and Grants Program" (the "Program''). 2. The purpose of the Program is to provide 10w- and moderate-income homeowners ("Qualified Homeowners") who reside in certain neighborhoods of the City of San Bernardino (the "City"), with a special source ofloan and grant funds to undertake certain housing rehabilitation and correction work (including asbestos containing materials abatement work, handicap accessibility improvements and building code deficiency corrections) and certain exterior landscape and structural beautification improvements of owner-occupied single family residential dwelling units. As used in this Agreement, the words "low- and moderate-income" shall have the meaning set forth in Health and Safety Code Section 50053.5 and as further illustrated for the Program in Exhibit "A" of this Agreement (the "1999 Income Limits"). 3. The application of the proceeds of such loans and grants to such work by Qualified Homeowners under the specifications of the Program promotes and expands the supply of affordable housing in the City and fosters the elimination and prevention of blight. 4. For Agency Fiscal Year 1999-2000, the Agency has allocated the sum of Five Hundred Thousand Dollars ($500,000.00) to be made available from the Low-and Moderate-Income SBEO/OOO I/DOC/3545 8/31/99 1025 sk 1 , , eDe 1999-31 Housing Fund of the Agency (the "Agency Funds") for disbursement under the Program to Qualified Homeowners for such home improvement and beautification loans and grants. NOW, THEREFORE, it is mutually agreed by and between the parties as follows: Section 1. DEFINITIONS OF CERTAIN TERMS. In addition to the words and phrases which are defined in the Recitals of this Agreement, the following words and terms shall have the meaning set forth below: . "Agency-Designated Neighborhood" means and refers to specific neighborhoods or areas in the City which the Agency has instructed the Consultant are eligible for Program Loans. During the initial term of this Agreement and until receipt of further instruction by the Consultant from the Agency, all Program Loans shall be originated for Qualified Homeowners who reside in anyone (1) of seven (7) separate target areas designated under the Neighborhood Initiative Program (the "NIP") of the City as depicted on the vicinity map included as Exhibit "B". . "Executive Director" means and refers to the Executive Director of the Agency and his or her authorized representatives. . "Home" means and refers to the land and the single family dwelling unit in which the Qualified Homebuyer resides as its principal residence. . "Program Loan" means and refers to each single family home improvement and beautification loan and grant transaction by and between a Qualified Homeowner and the Agency under the Program, to be originated and serviced by the Contractor as set forth in this Agreement. Each Program Loan may include a component which is repayable as a loan by the Qualified Homeowner to the Agency for the structural interior rehabilitation improvements to the Home and a component which is a grant for the eligible exterior aesthetic amenities and landscape improvements, if any. For the purposes hereof, in a particular instance, a Program Loan to a Qualified Homeowner may thus include both a loan and grant component under the Program, or a loan component only, depending on the specific Home and the Qualified Homeowner. The terms and conditions of each Program Loan are described in the Scope of Services attached hereto as Exhibit "c" and are more fully set forth in the "EDA Rehabilitation Loan & Grant Policies and Procedures Manual" as of file with the Agency. Each Program Loan shall be evidenced by the Program Loan Documents. . "Program Loan Applicant" means and refers to the written application for a Program Loan which has been signed by the Qualified Homeowner and verified by the Consultant to be complete, SBEO/000I/DOC/3545 8/3 1/99 1025 sk 2 eDe 1999-31 . "Program Loan Application" means and refers to a completed written application for a Program Loan which has been executed by a Qualified Homeowner. Each Program Loan Application shall contain the information relating to the Qualified Homeowner and the proposed use of the Program Loan proceeds by the Qualified Homeowner together with a current preliminary title report or other proof of title acceptable to the Agency for the Home. . "Program Loan Disbursement Account" means and refers to the custodial deposit account which the Consultant shall establish with an FDIC-insured depository institution for the receipt and disbursement of all Agency Fund proceeds under a Program Loan. Such deposit account agreement among the Consultant, the Agency and such depository institution shall be in a form and substance as reasonably satisfactory to the Agency. No other funds of the Consultant shall be deposited or co-mingled in the Program Loan Disbursement Account. The Consultant shall serve as the trustee of the Agency in the administration of all Agency Funds or deposit in the Program Loan Disbursement Account, including any interest as may accrue thereon. . "Program Loan Documents" means and refers collectively to each of the following documents executed by the Qualified Homeowner: (i) the Program Loan Application; (ii) the Program Loan Agreement and the customary consumer loan term disclosure documentation; (iii) the promissory note of the Qualified Homeowner payable to the Agency and dated as of the date of initial disbursement of Agency Funds for the account of the Qualified Homeowner to the Program Loan Disbursement Account; (iv) the deed of trust on the Home which secures the repayment of the promissory note to the Agency. The deed of trust also contains certain community redevelopment home affordability covenants enforceable by the Agency; and (v) a policy of title insurance in favor of the Agency as lender insuring its security interest in the deed of trust. SBEO/OOO I/DOC/3545 8/3 1/99 1025 sk 3 CDe 1999-31 The general form of Program Loan Documents (ii), (iii) and (iv) which shall be completed and used in each Program Loan transaction are on file with the Agency . "Qualified Homeowner" means and refers to a person or household which owns and occupies a single famiIy resident dwelling unit (a "Home") as its principal residence in an Agency-Designated Neighborhood for at least twelve (12) continuous months preceding the date of submission of its Program Loan Application to the Consultant; and (ii) has a personal or household income level, adjusted for family size, during the twelve (12) months preceding the date of submission of its Program Loan Application to the Agency within the ranges of income for low- and moderate income households, adjusted for family size, as set forth in Exhibit "A". . "Services" means and refers to the Program Loan origination, Agency Fund disbursement control and related accounting and Work monitor (course of construction builder contract) services to be provided by the Consultant to the Agency. The various elements of the Services are more fully set forth in the "Scope of Services" attached hereto as Exhibit "C". . "Work" means and refers to the single family housing improvement and beautification work to be performed by a state-licensed general contractor on each Home pursuant to the terms of a written agreement by and between the Qualified Homeowner and such general contractor. Only the items of Work set forth in such a contract shall be authorized for payment by the Consultant, up to the maximum amount authorized under the terms of the Program Loan for such Work. Any costs of Work in excess of the maximum amount of the Program Loan (which are not the fault of such general contractor) shall be paid for by the Qualified Homeowner. Section 2 . EMPLOYMENT OF CONSULTANT. The Agency agrees to employ the Consultant to perform the Services and the Consultant hereby agrees to accept such employment and to perform the Services as set forth herein. Section 3 . SCOPE OF SERVICES. Consultant agrees to provide the Services to the Agency as set forth herein and as described in the Scope of Services attached as Exhibit "C". Promptly following the date of approval of this Agreement by the governing board of the Agency the Consultant shall: (1) cause the Program Loan Disbursement Account to be established and the general form of an FDIC - insured deposit account agreement acceptable to the Agency to be fully executed by the Consultant, the depository institution and the Agency within thirty (30) days following the date of approval of this Agreement; SBEO/OOO 1/00C/3545 8/31/99 1025 sk 4 CDe 1999-31 (2) develop a specific neighborhood outreach and Program Loan availability and information program in consultation with the Executive Director, which is focused on Qualified Homeowners and other interested persons in each Agency-Designated Neighborhood who may seek to obtain a Program Loan; (3) in consultation with the Executive Director complete the preparation of the general form of a Program Loan Application for general use in connection with the Services and the origination of Program Loans. The Executive Director shall review and approve the final form of the Program Loan Application as submitted by Consultant within thirty (30) days following the date of approval of the Agreement. The Consultant shall designate a title insurance company acceptable to the Agency which shall coordinate the issuance of a lender's policy of title insurance in favor of the Agency at the time of recordation of the deed of trust under each Program Loan; (4) subject to the completion of the tasks described in paragraphs (1), (2) and (3) above, begin the process of receiving and reviewing Program Loan Applications and provide the Services in accordance with the Scope of Services; (5) Consultant shall transmit a copy of a completed set of Program Loan Documents, together with a recommendation of the Consultant to fund such Progranl Loan and a request for a transfer of Agency Funds for the account of the Qualified Homeowner, to the Executive Director for authorization for funding. The Executive Director shall either authorize the funding of such Program Loan or reject the request for funding on behalf of the Agency within ten (10) days of receipt from the Consultant. Any rejection of a Program Loan Application shall be in writing and state the reasons for such action. Each acceptance of a Program Loan Application by the Agency shall be evidenced by the signature of the Executive Director of the Program Loan Documents. All Project Loan Documents for each Program Loan shall be completed by the Qualified Homeowner and the Consultant. and the disbursement of Agency Funds on each Program Loan shall occur within sixty (60) days following the date of submission of the funding request to the Executive Director, or the Project Loan Agreement shall be of no further force or effect; (6) no fees, charges or expenses shall be payable by any applicant for a Program Loan to the Consultant, except from Agency Funds, nor shall the Consultant charge a Qualified Homeowner for any cost or service in connection with the origination or subsequent administration of a Program Loan during the time Work is performed at the Home, except as authorized under the Program; (7) Consultant shall instruct the Executive Director to transfer Agency Funds for the account of each Qualified Homeowner to the Program Loan Disbursement Account as set forth in subparagraph (5), above, upon confirmation by the Consultant that Program Loan Documents for the Program Loan are complete and that the deed of trust is ready for 58EO/000 IIDOC/3545 8/31/99 1025 sk 5 eDe 1999-31 recordation. The Consultant shall coordinate the issuance of the policy of title insurance in favor of the Agency by the title insurance copy with the recordation of the deed of trust; (8) Consultant shall deliver a fully executed original set of Program Loan Documents for each Program Loan (except for the deed of trust) to the Agency upon request of funding and transfer of Agency Funds for the account of the Qualified Homeowner to the Program Loan Disbursement Account; (9) Consultant shall verify that no Agency Funds are disbursed from the Program Loan Disbursement Account for the account of a Qualified Homeowner except: (i) to pay a state- licensed general contractor for Work performed at the Home pursuant to a written agreement between such contractor and the Qualified Homeowner (less a 10% retention pending completion of the Work and final release of all mechanics and materials liens); and no disbursement of Agency Funds from the Program Loan Disbursement Account shall be authorized for any building materials or equipment items which are not physically delivered at the Home before the date of payment of such Agency Funds to the general contractor; or (ii) to pay a Program Loan title fee or cost amount expressly authorized in writing by the Executive Director; (10) Consultant shall prepare and maintain an Agency Funds disbursement ledger for all payments authorized and made by the Consultant to general contractors for the account and debit to each Qualified Homeowner under each Program Loan. Such ledger shall show each payment by date and reference the particular Program Loan to which it corresponds. Such ledger shall also include a monthly starting and ending balance for the Program Loan Disbursement Account, a final reconciliation of the adjusted balance of each Program Loan upon the completion of the Work, and such other accounting information as the Executive Director may request. A copy of such ledger shall be submitted to the Executive Director each month with the first such monthly submittal due on the first day of the next month following the date of the initial deposit of Agency Funds into the Program Loan Disbursement Account. (11) no Work shall be authorized for payment by the Consultant unless the Project Loan Documents are complete and the Consultant has received a fully executed copy of the contract by and between the general contractor and the Qualified Homeowner. Once the Work has commenced on a particular Home, neither the Qualified Homeowner or the general contractor shall authorize an amendment or modification of such contract to include any item of Work which is not eligible for payment using Agency Funds under the terms and conditions of the Program and the Program Loan. Each such contract by and between the general contractor and the Qualified Homeowner shall include a section which recites the words of the first two (2) sentences of this paragraph (11). SBEO/000l/DOC/3545 8/3 1/99 1025 sk 6 CDe 1999-31 Section 4 , TIME OF PERFORMANCE OF SERVICES. The Services to be performed hereunder by the Consultant shall be undertaken and completed in such sequence as to assure expeditious completion and best carry out the purposes of the Program and this Agreement. All Services required hereunder shall begin upon the execution of this Agreement. Section 5 . TERM OF AGREEMENT, This Agreement shall take effect upon approval by the governing board of the Agency and the complete execution by the parties. The Agreement shall remain in effect through September 30, 2000. Upon mutual written agreement of the parties in their sole and separate discretion dated on or before August 1, 2000, this Agreement may be extended after September 30,2000, for an additional period of time of up to twelve (12) months. Section 6 . COMPENSA TION PAYABLE BY AGENCY TO CONSULTANT. (a) The Agency shall compensate Consultant for the performance of the Services in accordance with the following schedule: (1) during the first sixty (60) days of the term of this Agreement the Agency shall pay Consultant a fee of Six Thousand Two Hundred Fifty Dollars ($6,250.00) per month (with the first payment pro-rated for the number of calendar days between commencement of the Services and the first compensation payment date); (2) during each succeeding month of the term of this Agreement following subparagraph (1), above, the Agency shall pay Consultant a monthly fee for Services calculated as follows: (i) One Thousand Five Hundred Dollars ($1,500.00); plus (ii) Two Thousand Three Hundred Seventy Five Dollars ($2,375.00) for each Project Loan for which Agency Funds are initially transferred by the Agency in such month to the Program Loan Disbursement Account, to a maximum payment by the Agency under this subparagraph (ii), of Four Thousand Seven Hundred Fifty Dollars ($4,750.00) per month. (b) Sums payable by the Agency to the Consultant as compensation for Services shall be paid by the Agency directly to the Consultant, and shall not be disbursed by the Consultant from the Program Loan Disbursement Account. (c) Payment for Services will be made by the Agency as of the first day of each calendar month with the first such payment due on the first day of the next calendar month following the date of the complete execution of the Agreement by the parties. SBEO/OOO 1/00C/3545 8/31/99 1025 sk 7 eDe 1999-31 Section 7 . PERSONNEL OF CONSULTANT. Consultant represents that it has, or will secure at its own expense, all personnel required to perform the Services. All of the Services required hereunder will be performed by persons who are either employed by or under the supervision and control of the Consultant, and all personnel engaged in the Services shall be fully qualified to perform such Services. Section 8 . INDEPENDENT CONTRACTOR. All acts of Consultant and all others acting on behalf of Consultant relating to the performance of this Agreement, shall be performed as independent contractors and not as agents, officers, or employees of Agency or the City. Consultant, has no authority to bind or incur any obligation on behalf of Agency or the City. Consultant has no authority or responsibility to exercise any right or power vested in the Agency or the City. No agent, officer, or employee of the Agency or the City shall be considered an employee of Consultant. It is understood by both Consultant and Agency that this Agreement shall not under any circumstance be construed or considered to create an employer-employee relationship or a joint venture as between the Consultant and the Agency. Consultant is and at all times during the term of this Agreement shall represent and conduct itself as an independent contractor and not as an employee of the Agency. Consultant shall determine the method, details, and means of performing the Services under this Agreement. Consultant shall be responsible to the Agency only for the requirements and results specified in this Agreement, and except as expressly provided in this Agreement, shall not be subject to control by the Agency with respect to the physical action or activities of Consultant in fulfillment of this Agreement. Consultant has control over the manner and means of performing the Seryices under this Agreement so long as consistent with the requirements of the Program. Consultant is permitted to provide services to others during the same period Services are provided to the Agency under this Agreement. If necessary, Consultant has the responsibility for employing other persons or firms to assist Consultant in fulfilling the terms and obligations under this Agreement. Ifin the performance of this Agreement any third persons are retained as subcontractors by Consultant, such persons shall be entirely and exclusively under the direction, supervision, and control of Consultant. All terms of employment including hours, wages, working conditions, discipline, hiring, and discharging or any other term of employment or requirements of law shall be determined by the Consultant. Consultant hereby agrees to indemnify, defend, and hold the Agency harmless from any and all claims that may be made against the Agency or based upon any contention by any employee of Consultant or by any third party that an employer-employee relationship exists between person and the Agency, by reason of the performance of any of the Services under this Agreement. Section 9 TRANSFER OF AGENCY FUNDS TO PROGRAM LOAN DISBURSEMENT ACCOUNT. The Agency shall promptly honor each request by the Consultant for the Agency to transfer Agency Funds to the Program Loan Disbursement Account to fund each completed Program Loan as submitted by the Consultant under Section 3(5). Within ten (10) days following receipt of each SBEO/OOOI/DOC/3545 8/31/99 1025 sk 8 eDe 1999-31 request for remittance of Agency Funds, the Agency shall transfer by bank check such Agency Funds to the Program Loan Disbursement Account. COMMERCIAL GENERAL LIABILITY INSURANCE AND WORKMANS' COMPENSATION INSURANCE. Section 10 (a) The Consultant shall obtain and keep in force during the term of this Agreement a commercial general liability policy of insurance with coverage at least as broad as "Insurance Services Office Commercial General Liability Form (G0001)," including but not limited to insurance against assumed contractual liability under this Agreement protecting the Agency, its officers, employees and agents, as additional insureds against claims for bodily injury, personal injury and property loss or damage based upon, involving or arising out of the Services provided by the Consultant. Such insurance shall be on an occurrence basis providing single limit coverage in an amount not less than One Million Dollars ($1,000,000) in the event of bodily injury, personal injury and property loss or damage to any number of persons per occurrence. The policy shall not contain any intra-insured exclusions as between insured persons and organizations, but shall include coverage for liability assumed Agreement as an "insured contract" for the performance of the indenmity obligations of the Consultant to the Agency. The limits or exclusions from coverage of such insurance shall not however limit the liability of the Consultant nor relieve the Consultant of any other obligation under this Agreement. All insurance to be carried by the Consultant shall be primary to and not contributing to any single insurance carried by the Agency whose insurance shall be considered excess insurance only. (b) To the extent required by the law, the Consultant shall carry and maintain workers' compensation or similar insurance in form and amounts required by law. (c) All insurance which the Consultant shall carry or maintain pursuant to this Section 10 shall be in such form, for such amounts, for such periods of time as the Agency may require or approve and shall be issued by an insurance company or companies authorized to do business in California and which maintains during the term of the policy a "General Policy Holder's Rating" of at least A(v), as set forth in the most current edition of "Best's Insurance Guide". In no circumstance will the Consultant be entitled to assign to any third party rights of action which the Consultant may have against the Agency. All policies or endorsements issued by the respective insurers for commercial general liability insurance will name the Agency, its officers, employees and agents, as additional insureds and provide that: (i) any loss shall be notwithstanding any act or failure to act or negligence of the Consultant or the Agency or any other person; (ii) no cancellation, reduction in amount, or material change in coverage thereof shall be effective until at least thirty (30) days after receipt by the Agency of written notice thereof; and (iii) the insurer shall have no right of subrogation against the Agency, its officers, agents, or employees. (d) The Consultant shall deliver or cause to be delivered to the Agency concurrently upon the execution of this Agreement an endorsement of its commercial general 5BEO/000 I/DOC/3545 8/31/99 1025 sk 9 CDe 1999-31 liability insurance policy evidencing the existence of the insurance coverage required by the Agency and shall also deliver, no later than thirty (30) days prior to the expiration of any such policy, a certificate of insurance evidencing each renewal policy covering the same risks. Section 11 INDEMNIFICATION. Consultant shall indemnify, defend and hold harmless the Agency, its officers, agents and employees, from and against any and all claims, demands and liability for damages for personal injury or property damage suffered by reason of any act or omission of Consultant or Consultant's employees, volunteers, agents or contractors. Agency shall indemnify, defend and hold harmless the Consultant, its officers, and employees, from all claims, demands and liability for damages for personal injury or property damage suffered by reason of any act or omission of the Agency or any of its officers or employees or agents, except where such action or omission giving rise to such a claim is caused by or is the result of an action, omission or request of Consultant or Consultant's officers, or employees, or is alleged to arise out of the execution of this Agreement. The provisions of Section 11 shall survive the expiration or early termination of this Agreement. Section 12 . DEF AUL TS AND BREACH - GENERAL. Failure or delay by either party to perform any material term or provision of this 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, and 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. 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 terminate this Agreement and seek any appropriate remedy or damages by initiating legal proceedings. The prevailing party in any such legal proceedings shall be entitled to recover as an element of its costs of bringing such suit, and not as part of its damages, its reasonable attorneys' fees and costs. Section 12 NONDISCRIMINATION. During Consultant's performance of the Services, Consultant shall not discriminate on the grounds of race, religious creed, color, national origin, age, ancestry, physical handicap, medical condition, marital status, sex or sexual orientation in the SBEO/OOO IIDOC/3545 8/31/99 1025 sk 10 eDe 1999-31 selection and retention of employees and subcontractors and the procurement of materials and equipment, except as provided in Section 12940 of the California Government Code. Section 13 CONFLICT OF INTEREST. Consultant warrants, by execution of this Agreement, that it has no interest, present or contemplated, in any Project Loan or any Home benefitted thereby or Work performed on any Home using a Project Loan. Consultant further warrants that it owns or possesses no interest in real property, business interests or owner of income (other than such amounts of compensation payable by the Agency to Consultant for the Services under this Agreement) that will be affected by the Program or, alternatively, if such interest exists or arises the Consultant will promptly file with the Agency an affidavit disclosing any such interest. Section 14 AMENDMENTS. All amendments to this Agreement shall be subject to the approval of both parties in the sole discretion of each of them, mutual and in writing. Section 15 TERMINATION. (a) This Agreement may be terminated for any reason by either party who is not then in default upon sixty (60) days' prior written notice to the other party. In such event the Consultant shall be entitled to receive compensation for Services pro-rated through the date of such termination, provided that the Services have been rendered. (b) In the event of a termination of the Agreement as a result of a breach, the rights and duties of the parties shall be as set forth in Section 12. (c) In the event of any termination of this Agreement, Consultant shall promptly return all Project Loan Disbursements to the Agency without charge or expense to the Agency. . Section 16 ASSIGNMENT. It is mutually understood and agreed that this Agreement shall be binding upon the Agency and its successors and upon the Consultant and its successors. Neither this Agreement, nor any part thereof, nor monies due or to become due thereunder, may be assigned by the Consultant without the prior written consent and approval of the Agency. The Agency and the Consultant hereby agree to the full performance of the covenants contained herein. Section 17 NOTICES. Delivery of any notice, bill, invoice or report required by this Agreement shall be sufficient if sent by one party to the other in the United States mail, postage prepaid, to the address noted below: Agency Consultant Economic Development Agency of Neighborhood Housing Services of SBEO/OOO 1/00C/3545 8/31/99 1025 sk 11 eDe 1999-31 the City of San Bernardino Attention: Executive Director 201 North "E:" Street, Suite 301 San Bernardino, California 92401 the Inland Empire, Inc. 1390 North "D" Street San Bernardino, California 92405 Phone: (909) 884-6891 FAX: (909) 884-6893 Section 18 REPRESENT A TION AND WARRANTY OF CONSULTANT. The Consultant hereby represents and warrants to the Agency as follows: (i) Consultant is a California non-profit corporation duly organized and existing and authorized to transact business in California; (ii) the corporate charter and by-laws of the Consultant authorize the Consultant to provide the Services to the Agency and the governing board and membership of Consultant have previously taken all action necessary to authorize the execution of this Agreement by the Consultant; (iii) the consultant is qualified to perform the Services. Section 19 PROGRAM LOANS AND PROGRAM LOAN DOCUMENTS ARE THE PROPER TY OF THE AGENCY. Each Program Loan is the property and asset of the Agency. The Consultant has no property interest in any such Program Loan and the Consultant shall not transfer, assign or pledge as collateral or claim any other security interest in any such Program Loan. All of the Project Loan Documents are the property of the Agency, and the Consultant shall maintain all such Project Loan Documents in its possession as confidential consumer business records of the Qualified Homeowner and the Agency and upon the conclusion of this Agreement, all such Project Loan Documents shall be delivered by the Consultant to the Agency. All Agency Funds deposited to the Program Loan Disbursement Account are the property of the Agency until paid by the Consultant for the account of a Qualified Homeowner under the applicable Project Loan Documents. Section 20 GENERAL. This Agreement constitutes the sole agreement between the parties. All prior conversations, agreements or representations relating hereto are integrated in this Agreement. No oral agreement, representation or warranty shall be binding upon the parties. SBEO/OOO IIDOC/3545 8/3 1/99 1025 sk 12 CDe 1999-31 IN WITNESS WHEREOF the Consultant and the Agency have caused this Agreement to be duly executed on the dates indicated below next to the authorized officers of each of them. This Agreement may be executed in counterparts, but this Agreement shall have no force or effect unless it has been fully executed by the parties. AGENCY: Redevelopment Agency of the City of San Bernardino Date: 1h /qi' / / Approved as to Form: {~ ~ q-;2.-'1."'; , Agency Counsel to Form and CONSUL T ANT: Neighborhood Housing Services of the Inland Empire, Inc., a California non-profit corporation Date: /~~ 9? , BY~~ LA"Y''''':Y- Title: tf;~t' JJrr-"~II<.r'l1f (.,; .,'f /\ . ~' bl';Pl~ r ~,/c!vV ,~0 L'"n~.2'~,,/ Titler?;~IL,?:,t fJi-Ji ')f#.l L Date: SBEO/OOO 1100C/3545 8/3 1/99 1025 sk 13 CDe 1999-31 1999 Income Limits Single Family Owner - Occupied Loan and Beautification Grant Program *Income HOUSEHOLD SIZE (No. of Persons Per Household) Level 1 2 3 4 5 6 7 8 Very Low - 50% $16,500 $18,900 $21,250 $23,600 $25,500 $27,400 $29,250 $31,150 Low - 80% $26,450 $30,200 $34,000 $37,750 $40,800 $43,800 $46,800 $49,850 Moderate - 120% $39,650 $45,300 $51,000 $56,650 $61,200 $65,700 $70,250 $74,800 San Bernardino Area Median Income $47,200 for a family of four. *Note: Income Limits are subject to annual renewal. EXHIBIT "A" CDe 1999-31 HUD Housing & Neighborhood Initiative Program (NIP) Target Areas ,.-.......... :--... I \ i -.-.j! \ . '-'., . I "-.j (,.-/ :.... 1'_'-'1 -.-.-...., /".,.' '- ~.1 , , . {_._._. 1 I \, ,~ ~ j i. " ' , 'I " ". '-'. (- " ' l_._._.~ I ! ~ ~ , ". I f. \ -., '. \ , , \ ., . " \ . \ , \ i./ \ .'" \ 1 1._,_..... \ . . , \j Highland Ave. Foothill Blvd. l' NORTH ._..i i .........1 _.i ! ~'-'- '. ~._._._._.~ ! ", j ! .......r ! ! L. '-'.I ~~ .,11\ I TARG~T AREA 161 1 -.....-.-.1 ~ i r' i ~ Street .....J '_'_'_'_'-" . ~ .-..... Ui L._' 40th " '1 .-.-., .-.-.-.- j-.-...., . I I i .y...~.-._.~ !_.-.....; r. " Baseline I I ..... .\,. I., ;,\-.":'\ ~ l: o U ;; .r~ .-.; ..I 5th Street : -. -. -. -. _.j r '1 1 ~.-.. Rlallo Ave. MiIISlreet ,; > 0( 8 c ~ u e 0. 0. 0:: ,/ .-- /'-'- c ~ 'ii ~ San Bernarhlno Ave. 10 Redlands Blvd. 1 L_ / .., 1;":.-.-' .-...., EXHIBIT "B" City of San Bernardino . ECONOMIC DEVELOPMENT AGENCY CDe 1999-31 . - A. Rehabilitation Loan/Grant Program Processing and Servicing Fees ($75,000) The Agency shall compensate NHS the total sum of $75,000 for the administration and implementation of the Program herein and for services rendered under this Agreement. NHS shall bill the Agency monthly in equal installments up to the maximum amount of compensation stated herein. B. Single Familv Rehabilitation Loan And Beautification Grant Program ("the Program") ($425,000) I. NHS shall utilize the funds herein to provide deferred low interest (3%) loans (maximum of $25,000 per property) and grants (maximum of $5,000 per property) to income eligible (120% median income and below - See Attachment 1, 1999 Income Limits) owner-occupied single family homeowners in order to improve the City's housing stock and remedy unhealthy living conditions, specifically in the seven (7) NIP areas. On a case by case basis, subject to extenuating circumstances, the amounts herein may be exceeded, provided NHS has obtained approval by the Executive Director of the Agency (Director), or his designee, the administrator of this Agreement. 2. Under the direction of the HCD Director, NHS shall administer and implement the Program herein and shall utilize the applicable and pertinent sections of the Economic Development Agency's (EDA), Rehabilitation Loan & Grant Policies and Procedures Manual for guidance on processing and packaging all loans and grants under this Agreement. 3. NHS shall accept loan/grant applications from respective homeowners, first within all approved NIP seven (7) target areas (see MAP), and to detennine income and improvement eligibility, detennine equity on the subject property, verify ownership by obtaining a title report or other pertinent documentation from a reputable Title Company. Should there be no interest by homeowners in the NIP target areas for an extended period, NHS shall consult with Director, and offer the Program on an as needed, first come, first serve basis, to homeowners throughout the City. 4. Inspecting eligible properties to detennine the type of health and safety and code violation repair work needed, including asbestos and lead based paint removal, the age and overall condition of the unit and to ensure that all units rehabilitated under the Program when completed are aesthetically pleasing. 5. Preparing and completing work write-ups, the cost estimates and bid package for the improvements for each property. 6. Soliciting bids for the rehabilitation work from a list of pre-approved general contractors, if necessary. Assisting homeowners with the selection of a contractor, and the execution of the contract between owner and contractor, including the Scope of Work and Schedule of Perfonnance; schedule and conduct pre-construction and walk thru conferences, etc. 7. Inspection and monitoring the rehabilitation work while in progress and supervising the payment invoice procedures to ensure that all contractors and subcontractors are meeting obligations and that progress, payments and retentions are paid in a timely manner. 8. Coordinating with the Contractor and final inspection and payment of the contract retention. 9. Maintain a file for each Program participant and insure that all documentation is on file, including, but not limited to, application, proof of ownership, income verification, com parables or appraisals, work write-ups, contracts, promissory notes, deeds of trust, etc. The original promissory note and deed of trust shall be for the benefit of the Agency and shall be transmitted to Agency upon request for loan funds. 10. Provide any and all services required by the Director and Director of HCD, or his/her designee, in order to effectively implement and complete the services under this Agreement. EXHIBIT "C"