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HomeMy WebLinkAboutCDC/2004-08 RESOLUTION NO. CDC/2004-8 2 3 A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND APPROVING THE EXECUTIVE DIRECTOR OF THE AGENCY TO EXECUTE A ONE (1) YEAR AGREEMENT BY AND BETWEEN NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE, INC. (NHS) AND THE REDEVELOPMENT AGENCY ("AGENCY") FOR ADMINISTRATION OF THE AGENCY'S SINGLE FAMILY HOME IMPROVEMENT LOAN AND BEAUTIFICATION GRANT PROGRAMS 4 5 6 7 8 WHEREAS, the Agency has established an affordable housing improvement program 9 known as the "Single Family Home Improvement Loan and Beautification Grant Program" (the 10 "Program"); and 11 WHEREAS, the purpose of the Program is to provide low- and moderate-income 12 homeowners ("Qualified Homeowners") who reside in the City of San Bernardino (the "City"), 13 with a source of loan and grant funds to undertake certain housing rehabilitation and correction 14 work (including asbestos and lead containing materials abatement work, handicap accessibility 15 improvements and building code deficiency corrections) and certain exterior beautification and 16 enhancements, such as landscape, painting, fencing, etc., of owner-occupied single family 17 residential dwelling units. As used in this Agreement, the words "low- and moderate-income" 18 shall have the meaning set forth in Health and Safety Code Section 50053.5 and as further 19 illustrated for the Program in Exhibit "A" of this Agreement (the "2004 Income Limits"); and 20 WHEREAS, the application of the proceeds of such loans and grants to such work by 21 Qualified Homeowners under the specifications of the Program promotes and expands the 22 supply of affordable housing in the City and fosters the elimination and prevention of blight; 23 and 24 WHEREAS, on September 7,1999, the Community Development Commission approved 25 an Agreement with Neighborhood Housing Services of the Inland Empire ("NHS") for the -1- P:\Agendas\Resolutlons\Resolutlons\2004\04-04-05 NHS Single Family Contract Renewal CDC Reso.dot CDC/2004-8 purpose of administering the Program, and said Agreement was subsequently amended on July 2 24, 2000, ("Amendment No. I") and on March 5, 2001 ("Amendment No.2), and due to the 3 passage of time, and numerous modifications that have been made to the Program, including but 4 not limited to, changes in the compensation, modifications to the Program description, the 5 parties have now determined that NHS will continue to administer the Program on behalf of the 6 Agency for a period of one (1) year only, commencing April 5, 2004 through April 4, 2005, and 7 therefore, the parties desire to enter into a new Agreement dated, April 5, 2004 ('Contract 8 Period"), incorporating all the respective changes, terms and conditions into a new Agreement 9 for the implementation and administration of the Program by NHS; and 10 WHEREAS, in order to carry out the administration of the Program the Agency will 11 allocate for the new Contract Period, the sum of One Million Two Hundred Thousand Dollars 12 ($1,200,000.00) from the Agency Low- and Moderate-Income Housing Fund (the "Agency 13 Housing Fund") for disbursement under the Program to Qualified Homeowners for such home 14 improvements and beautification permitted under the Program. 15 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS FOLLOWS: 16 17 18 Section 1. The Community Development Commission hereby authorizes and 19 approves the Agreement by and between the Agency and NHS in the form as presented at the 20 meeting of the Commission at which this Resolution is adopted and hereby authorizes the Executive Director to execute the Agreement on behalf of the Agency. 21 Section 2. The Executive Director of the Agency is hereby authorized to make 22 mmor corrections, additions, clarifications, interpretations to the Agreement, provided said 23 changes are not substantive in nature, do not increase the monetary impact to the Agency, and 24 are consented to by Agency Counsel. 25 -2- P:\Agendas\Resolutlons\Resolutlons\2004\04-04-05 NHS Single Family Contract Renewal CDC Reso.doc CDCj2004-8 Section 3. For the purpose of satisfying the requirements of Health and Safety Code 2 Section 33413 (b), the Commission hereby finds and determines that the Program expands and 3 preserves the community's supply of affordable housing as provided under said provision of the 4 Health and Safety Code; 5 Section 4. 6 /II 7 /II 8 /II 9 /II 10 /II 11 /II 12 /II 13 /II 14 /II 15 /II 16 /II 17 18 /II 19 /II 20 /II 21 /II 22 /II 23 /II 24 /II 25 The Resolution shall become effective immediately upon its adoption. -3- P:\Agendas\Resolutlons\Resolutions\2004\04-04-05 NHS Single Family Contract Renewal CDC Reso.doc CDC/2004-8 1 A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND APPROVING THE EXECUTIVE DIRECTOR OF THE AGENCY TO EXECUTE A ONE (1) YEAR AGREEMENT BY AND BETWEEN NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE, INC. (NHS) AND THE REDEVELOPMENT AGENCY ("AGENCY") FOR ADMINISTRATION OF THE AGENCY'S SINGLE FAMILY HOME IMPROVEMENT LOAN AND BEAUTIFICATION GRANT PROGRAMS 2 3 4 5 6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the 7 Community Development Commission of the City of San Bernardino at a j t. reg. meeting 8 thereof, held on the 5th day of April , 2004, by the following vote to wit: 9 Commission Members: Aves Navs Abstain Absent 10 ESTRADA x - 11 LONGVILLE x MCGINNIS -1L- 12 DERRY x 13 KELLEY X 14 JOHNSON X 15 MC CAMMACK )C 16 19 The foregoing resolution is hereby approved this fn..- day of ,2004. 17 18 20 25 alles, Chairperson unity Development Commission City of San Bernardino 21 22 23 24 By: -4- P:\Agendas\Resolutlons\Resolutions\2004\04-04-05 NHS Single Family Contract Renewal CDC Reso.doc CDC/2004-8 2004 AGREEMENT FOR THE SrnGLE FANULYHOME IMPROVEMENT LOAN AND BEAUTIFICATION GRANT PROGRAMS (Agency LowlModerate Housing Funds) THIS AGREEMENT is made and entered into as of April 5, 2004 by and between NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE, INC., a California non-profit corporation (the "Contractor") 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 Loan and Beautification Grant Program" (the "Program"). 2. The purpose of the Program is to provide low- and moderate-income homeowners ("Qualified Homeowners") who reside in the City of San Bernardino (the "City"), with a special source of loan and grant funds to undertake certain housing rehabilitation and correction work (including asbestos and lead 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 "2004 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 2003-2005, the Agency has allocated the sum of One Million Two Hundred Thousand Dollars ($1,200,000.00) to be made available from the Low- and Moderate-Income Housing Fund of the Agency (the "Agency Funds") for disbursement under the Program to Qualified Homeowners for such home improvements and beautification efforts in certain neighborhoods and on a citywide basis pursuant to the changes noted this Agreement. 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: . "Program Boundaries" means and refers to specific neighborhoods or areas in the City which the Agency has instructed the Contractor are eligible for Program 1 P:\Agendas\Agreements-Amendmcnts\Agrmts--Amend 2004\04-04.05 NHS Rehab Agr Renewal.DOC / ( CDC/2004-8 Loans and Beautification Grants. During the term of this Agreement and until receipt of further instruction by the Contractor from the Executive Director of the Agency, or his or her authorized representatives, all Program Loans and Beautification Grants 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" and/or throughout the City of San Bernardino (excluding County territory). . "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 loan 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 and/or beautification grant 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," 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 Contractor to be complete. . "Program Loan and Beautification Grant Application" means and refers to a completed written application for a Program Loan or Grant which has been executed by a Qualified Homeowner. Each Program Loan and Beautification Grant Application shall contain the information relating to the Qualified Homeowner and the proposed use of the Program Loan or Grant proceeds by the Qualified Homeowner together with a current preliminary title report or other proof of title acceptable to the Agency for the Home. The Contractor shall require all Qualified Homeowners to complete the application for the Program similar to the application attached hereto and incorporated by reference as Exhibit "D." . "Program Loan Disbursement Account" means and refers to the custodial deposit account which the Contractor shall establish with an FDIC-insured depository 2 P:\Agendas\Agreements-Amendments\Agrmts-Amend 2004\04..04-05 NHS Rehab Agr Renewal.DOC CDCj2004-8 institution for the receipt and disbursement of all Agency Fund proceeds under a Program Loan. Such deposit account agreement among the Contractor, the Agency and such depository institution shall be in a form and substance as reasonably satisfactory to the Agency. No other funds of the Contractor shall be deposited or co-mingled in the Program Loan Disbursement Account. The Contractor 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; and (v) a policy of title insurance in favor of the Agency as lender insuring its security interest in the deed of trust. 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 (1) a person or household which owns and occupies a single family resident dwelling unit (a "Home") as its principal residence within the Program Boundaries for at least twelve (12) continuous months preceding the date of submission of its Program Loan and Beautification Grant Application to the Contractor; (2) 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 and Beautification Grant 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 Contractor 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 Contractor, up to the maximum amount authorized under the terms of the Program Loan for such 3 p:\Agendas\Agreements-Amendments\Agrmts-Amend 2004\04-04-05 NHS Rehab Agr RenewaLDOC CDC/2004-8 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 unless approved in writing by the Agency Executive Director. Section 2. SERVICES OF CONTRACTOR. The Agency agrees to contract with the Contractor to perform the Services and the Contractor hereby agrees to accept such contract and to perform the Services as set forth herein. Section 3. SCOPE OF SERVICES. Contractor agrees to provide the Services to the Agency as set forth herein and as described in the Scope of Services attached as Exhibit "C" for each Program Loan and Beautification Grant originated under the Program. Promptly following the date of approval of this Agreement by the governing board of the Agency the Contractor shall: ! (1) cause the Program Loan Disbursement Account to be established, or maintained, { and the general form of an FDIC - insured deposit account agreement acceptable to the Agency to be fully executed by the Contractor, the depository institution and the Agency . within thirty (30) days following the date of approval of this Agreement; (2) continue to use the general form of a Program Loan and Beautification Grant Application for general use in connection with the Services and the origination of Program Loans and Beautification Grants as previously provided by the Agency. The Contractor 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; (3) subject to the completion of the tasks described in paragraphs (1) and (2) above, continue the process of receiving and reviewing Program Loan Applications and provide the Services in accordance with the Scope of Services; (4) transmit a copy of a completed set of Program Loan Documents, together with a recommendation of the Contractor to fund such Program 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 Contractor. Any rejection of a Program Loan or Beautification Grant Application shall be in writing and state the reasons for such action. Each acceptance of a Program Loan or Beautification Grant Application by the Agency shall be evidenced by the signature of the Executive Director of the Program Loan Documents. All Program Loan Documents for each Program Loan shall be completed by the Qualified Homeowner and the Contractor, 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 Program Loan Agreement shall be of no further force or effect; 4 P:\Agendas\Agreements-Amendments\Agnnts-Amend 2004\04-04-05 NHS Rehab Agr Renewal.DOC CDC/2004-8 (5) no fees, charges or expenses shall be payable by any applicant for a Program Loan to the Contractor, except from Agency Funds, nor shall the Contractor 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 for the Maintenance Class fee; or as authorized under the Program by the Agency Executive Director; (6) 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 Contractor that Program Loan Documents for the Program Loan are complete and that the deed of trust is ready for recordation. The Contractor 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; (7) deliver a fully executed original set of Program Loan Documents for each Program Loan (except for the original 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; (8) 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; (9) prepare and maintain an Agency Funds disbursement ledger for all payments authorized and made by the Contractor 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. No Work shall be authorized for payment by the Contractor unless the Program Loan Documents are complete and the Contractor has received a fully executed copy of the contract by and between the general contractor and the Qualified Homeowner. Once the Work has 5 P:\Agendas\Agreements-Amendments\Agrmts-Amend 2004\04-04-05 NHS Rehab Agr RenewaLDOC CDC/2004-8 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). Section 4. TIME OF PERFORMANCE OF SERVICES. The Services to be performed hereunder by the Contractor 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 April 4, 2005. Section 6. COMPENSA nON PAYABLE BY AGENCY TO CONTRACTOR. (a) The Agency shall compensate Contractor for the performance of the Services using Agency funds in accordance with the following schedule: $400,000 $595.000 Program Administration for Contractor Pre-Development Costs such as cancelled title policies, architecture and engineering, lead base testing and inspections, if necessary. Specific Neighborhoods Program Citywide Program $200,000 $5,000 $1.200.000 (b) Program Administration sums payable by the Agency to the Contractor as compensation for Services shall be paid by the Agency directly to the Contractor, payable in twelve (12) equal monthly installments of$16,666.66 during the Term of this Agreement. (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. Section 7. PERSONNEL OF CONTRACTOR. Contractor 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 Contractor, and all personnel engaged in the Services shall be fully qualified to perform such Services. Section 8. INDEPENDENT CONTRACTOR. All acts of Contractor and all others acting on behalf of Contractor relating to the performance of this Agreement, shall be performed 6 P:\Agendas\Agreements-Amcndments\Agrmts-Amend 2004\04-04-05 NHS Rehab Agr Renewal.OOC CDC/2004-8 as independent contractors and not as agents, officers, or employees of Agency. Contractor, has no authority to bind or incur any obligation on behalf of Agency. Contractor has no authority or responsibility to exercise any right or power vested in the Agency. No agent, officer, or employee of the Agency shall be considered an employee of Contractor. It is understood by both Contractor 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 Contractor and the Agency. Contractor 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. Contractor 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 Contractor in fulfillment of this Agreement. Contractor has control over the manner and means of performing the Services under this Agreement so long as consistent with the requirements of the Program. Contractor is permitted to provide services to others during the same period Services are provided to the Agency under this Agreement. If necessary, Contractor has the responsibility for employing other persons or firms to assist Contractor in fulfilling the terms and obligations under this Agreement. If in the performance of this Agreement any third persons are retained as subcontractors by Contractor, such persons shall be entirely and exclusively under the direction, supervision, and control of Contractor. 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 Contractor. Contractor hereby agrees to indemnify, defend (if requested by Agency), 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 Contractor 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. PAYMENT OF AND TRANSFER OF AGENCY FUNDS TO PROGRAM LOAN DISBURSEMENT ACCOUNT. The Agency shall promptly honor each request by the Contractor for the Agency to transfer Agency Funds to Contractor who will in turn deposit Agency Funds to the Program Loan Disbursement Account to fund each completed Program Loan as submitted by the Contractor under Section 3(5). Within ten (10) days following receipt of each request for remittance of Agency Funds, the Agency shall transfer by bank check to the Contractor such Agency Funds to use as provided herein. Section 10. COMMERCIAL GENERAL LIABILITY INSURANCE AND WORKMANS' COMPENSA nON INSURANCE. (a) The Contractor 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 (GOOOl)," including but not limited to insurance against assumed contractual liability under this Agreement protecting the Agency, its officers, attorneys, 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 Contractor. Such insurance shall be on an occurrence basis providing single 7 P:\Agendas\Agreements-Amendments\Agrmts-Amend 2004\04-04-05 NHS Rehab Agr Renewal.DOC CDC/2004-8 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. All insurance to be carried by the Contractor 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 Contractor shall carry and maintain workers' compensation or similar insurance in form and amounts required by law. (c) All insurance which the Contractor 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 Contractor be entitled to assign to any third party rights of action which the Contractor 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, attorneys, 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 Contractor 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, attorneys, or employees. (d) The Contractor shall deliver or cause to be delivered to the Agency concurrently upon the execution of this Agreement an endorsement of its commercial general 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. Contractor shall indemnify (if requested by Agency), defend and hold harmless the Agency, its officers, attorneys, agents and employees, from and against any and all claims, loss, demands and liability for damages for personal injury or property damage suffered by reason of any act or omission of Contractor or Contractor's employees, volunteers, agents or contractors. Agency shall indemnify, defend (if requested by Contractor) and hold harmless the Contractor, its officers, and employees, from all claims, loss, 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 Contractor or Contractor'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. DEFAULTS 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 8 P;\Agc:ndas\Agreements-Amendments\Agrmts..Amend 2004\04-04-05 NHS Rehab Agr Renewal.DOC CDC/2004-8 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. If any action or proceeding is brought to enforce the terms hereof or declare rights hereunder, it shall be brought in the Superior Court of the County of San Bernardino, San Bernardino District, State of California. The governing law to be applied in any such action or proceeding shall be the law of the State of California. 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. The costs, salary and expenses of the City Attorney and members of his office in such action or proceeding on behalf of the Agency shall be considered as "attorneys' fees" for purposes of this Section. Section 13. NONDISCRIMINATION. During Contractor's performance of the Services, Contractor 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 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 14. CONFLICT OF INTEREST. Contractor warrants, by execution of this Agreement, that it has no interest, present or contemplated, in any Program Loan or Beautification Grant or any Home benefited thereby or Work performed on any Home using a Program Loan. Contractor 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 Contractor for the Services under this Agreement) that will be affected by the Program or, alternatively, if such interest exists or arises the Contractor will promptly file with the Agency an affidavit disclosing any such interest. Section 15. 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. The Executive Director of the Agency is authorized to make non-substantive changes, clarifications, corrections to the Agreement, including budget line item adjustments, provided such actions are 9 P:\Agendas\Agreements-Amendments\Agnnts-Amend 2004\04-04-05 NHS Rehab Agr RenewalDOC CDC/2004-8 approved by Agency Counsel and do not increase the Agency's monetary annual appropriation to the Contractor as approved by the governing board of the Agency. Section 16. TERMINATION. (a) This Agreement may be terminated for any reason by either party who is not then in default upon ten (10) days' prior written notice to the other party. In such event the Contractor 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 ofthe parties shall be as set forth in Section 12. (c) In the event of any termination of this Agreement, Contractor shall promptly return all Program Loan Disbursements to the Agency without charge or expense to the Agency. Section 17. ASSIGNMENT. It is mutually understood and agreed that this Agreement shall be binding upon the Agency and its successors and upon the Contractor and its successors. Neither this Agreement, nor any part thereof, nor monies due or to become due thereunder, may be assigned by the Contractor without the prior written consent and approval of the Agency. The Agency and the Contractor hereby agree to the full performance of the covenants contained herein. Section 18. 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: Agencv Economic Development Agency of the City of San Bernardino Attention: Executive Director 201 North "E" Street, Suite 301 San Bernardino, California 92401 Contractor Neighborhood Housing Services of the Inland Empire, Inc. Attention: Executive Director 1390 North "D" Street San Bernardino, California 92405 Phone: (909) 884-6891 Fax: (909) 884-6893 Section 19. REPRESENTATION AND WARRANTY OF CONTRACTOR. The Contractor hereby represents and warrants to the Agency as follows: (i) Contractor is a California nonprofit corporation duly organized and existing and authorized to transact business in California; (ii) the corporate charter and by-laws of the Contractor authorize the Contractor to provide the Services to the Agency and the governing board and membership of Contractor have 10 P:\Agendas\Agreements~Amendments\Agrmts-Amend 2004\04-04-05 NHS Rehab Au RenewalDOC CDC/2004-8 previously taken all action necessary to authorize the execution of this Agreement by the Contractor; (iii) the Contractor is qualified to perform the Services. Section 20. PROGRAM LOANS AND PROGRAM LOAN DOCUMENTS ARE THE PROPERTY OF THE AGENCY. Each Program Loan is the property and asset of the Agency. The Contractor has no property interest in any such Program Loan and the Contractor shall not transfer, assign or pledge as collateral or claim any other security interest in any such Program Loan. All of the Program Loan Documents are the property of the Agency, and the Contractor shall maintain all such Program 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 Program Loan Documents shall be delivered by the Contractor to the Agency. All Agency Funds deposited with the Contractor who will deposit said funds to the Program Loan Disbursement Account are the property of the Agency until paid by the Contractor for the account of a Qualified Homeowner under the applicable Program Loan Documents. Section 21. 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. 11 P:\Agendas\Agreements.Amendments\Agrmts-Amend 2004\04-04-05 NHS Rehab Agr Renewal.DOC CDC/2004-8 IN WITNESS WHEREOF the Contractor 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 Date: 1f V ~ r ( CONTRACTOR Date: +/~ Or Neighborhood Housing Services of the Inland Empire, Inc., a California nonprofit corporation By CYa,Jl k -JIr~ Title: Executive Director Date: ~;)<r BY:~~ ~ Title' /~)~ 12 P:\Agendas\Agrccmcnts-Amcn.dmcnts\Agrmts~Amend 2004\04-04-05 NHS Rehab Agr Rcnewal.DOC CDC/2004-8 EXHmIT "A" 2004 INCOME LIMITS Riverside and San Bernardino Counties 120% of Median* Family Size Redevelopment Limit 1 $45,600 2 $52,150 3 $58,650 4 $65,150 5 $70,350 6 $75,600 7 $80,800 8 $86,000 Effective March 2004. Source HCD *Subject to Annual Change CDC/2004-8 EXHIBIT "B" \~ .\ California Stale University ~-L San Bernardino ". I< Blvd '" ~15 ~ J "----- u. "y : - . Hill Dr. / ~ t L i ~ , ij iC I 42nd tS i '- 5 41st W 13 L ::.: II .L :J - I 40th Street ',~ ~ ~ - rr- Patkdale Ogden '\\ \ ) ( ~ ~ ~ -~ "- \ : ~ ~ \i~ in ~ ~ ~ " ~ ~ -I1e w < in "'''el/ Blvd. ,..J I -6- ~ ~ .. ~ Mallory D '" f\ .g Porter <.> -/ ., . :J Mesa , 27th ::; 51. ~ , Adams Hiohland Ave. ,- ! ~ ~ ~-- I > 21st 51. ~ in 19th St. a (;" . E 17~ ~ , ~ ~-~ J 16th St. o ~ I Pacific I~ -) ~ ~ I~ 1 ~ '6 ~ ~ GlIbertSt. ~ c ~ -~ . 0 in E . 7 .~ ~ E . Baseline St eel "- " el "." . C 11~ 11~ 51. \ t 10th I~ 10th 51. 1...-- - 1- "- 9th 9~ 51. \-' ~ 8th Sf. 9th Sl ! ~ ~ ~ ~ Ui in ~ 71h 51. '" '" "'''' 7th Sl /1 ~ '" 1- Iel u. a I ~-- 6~ Sl 6th St 5~ Sl 'J I L Foo~. Blvd. I / 4~ St. 4th Sl ~ t I 3<d Sl V - I- 3<d 51. /I 3<d 51. -- 2nd 51. w A~ Alalia Ave. r Rlalto RialtoAve. .-/ ~ ~ -~ 1)1 ~ - .. u I 0 . r . g \ .:! . . EO: 0. fl- u; in ~ . 0. '--j II~ in U5 Ci) ~ ~ ~ If ~1. ill '" " , - el w <( W a ~ ,....., City of San Bernardino NIP TARGET AREAS CDC/2004-8 EXHmIT "c" SCOPE OF SERVICES (Description of Program) A. Contractor's Administration Costs The Agency shall compensate Contractor the total sum of $200,000 for the administration and implementation of the Program herein and for services rendered under this Agreement. CONTRACTOR shall bill the Agency monthly in equal installments of $16,666.66 up to the maximum amount of compensation stated herein. B. Sinl!le Familv Home Improvement Loan and Beautification Grant Prol!ram (the "Prol!ram") ($1.000.000) The Contractor shall conduct the Program in accordance with the following guidelines: 1. Utilize the funds herein ($1,000,000) to provide deferred low interest (3%) loans up to a maximum of $35,000 per property, and to provide Beautification Grants up to a maximum of $10,000 per property to Qualified Homeowners. (NOTE: Refer to Section 6. (a) of this Agreement for specific Budget Line Items on how these funds are to be used.) On a case-by- case basis, subject to extenuating circumstances, the amounts herein may be exceeded, provided Contractor has obtained approval by the Agency Executive Director, or his/her authorized designee. The improvements allowed under the Program are described in "c" below of this Scope of Services. 2. Under the direction of the Executive Director, Contractor 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, if applicable. 3. Contractor shall accept Program Loan/Grant Applications from respective Qualified Homeowners, first within all approved NIP seven (7) target areas (refer to map Exhibit "B"), or specific neighborhoods designated by the Agency, and to determine income and improvement eligibility (see Exhibit "A"*), determine equity on the subject property, verify ownership by obtaining a preliminary title report or other pertinent documentation from a reputable title Company. Should there be no interest by homeowners for the loan program in the NIP target areas, or upon extenuating or emergency circumstances, Contractor shall consult with Executive Director, and offer the Program on an as needed, first-come, first-served basis, to Qualified Homeowners throughout the City of San Bernardino. *Income limits are subject to annual change. 4. Inspecting eligible properties to determine 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 and in compliance with local, state and federal ordinances and laws. 1 CDC/2004-8 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 Qualified 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 Performance; 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 Qualified Homeowner and Contractor final inspection and payment of the contract retention. 9. Maintain a file for each Program participant and ensure that all documentation is on file, including, but not limited to, application, proof of ownership, income verification, comparables 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 each loan. 10. Provide any and all services required by the Executive Director or his/her designee, in order to effectively implement and complete the Services under this Agreement. C. Elil!ible Improvements Permitted under the Prol!ram 1. The Contractor shall use the funds stated in B. 1. above to provide loans and grants to Qualified Homeowners for the sole purpose of improving the Qualified Homeowners' housing and living conditions. The Contractor shall primarily use the Program Funds herein to provide Beautification Grants to Qualified Homeowners and shall only make Single Family Loans to Qualified Homeowners on a case-by-case basis subject to the approval of the Agency Executive Director, or his/her designee. The following types of improvements are permitted under the Loan Prol!ram, but not limited to: roof replacement; exterior and interior painting, including lead remediation; landscaping (automatic sprinklers and grass seed); window replacement; carpet replacement and/or flooring; heating and air system replacements; electrical work; sewer repair or sewer installation; termite repairs; exterior concrete flatwork such as sidewalks, driveways, curbs, gutters, hand railings; door or window screens; tub, shower, toilet repairs or replacements; foundation or structural repairs; fencing, etc. The Maximum Loan permitted under the Program is $35,000 per property. The following types of improvements are permitted under the Grant Prol!ram, but not limited to: roof replacement; exterior painting including lead remediation; landscaping including automatic sprinklers, grass seed and planting materials in accordance with Agency Landscaping Guidelines; parkway enhancements such as stamped concrete, trees and landscape plantings; window replacement; driveway repairs or replacements; garage door replacement; wrought iron, 2 CDC/2004-8 vinyl, wood or block fencing. The Maximum Beautification Grant permitted under the Program is $10,000 per property. The Contractor shall process Program Applications on a first-come, first-served basis. However, in case of emergency, or life threatening situation, the Contractor may process an application on an urgent basis subject to approval by the Agency Executive Director. Upon Contractor determining that the Qualified Homeowner is eligible to participate in the Program, the Contractor will ensure that all work performed on the Qualified Homeowner's home is performed by pre-qualified State licensed contractors. The Contractor shall also require that any contractor performing work under the Program is licensed to perform business in the City of San Bernardino and has a current license with the State of California Contractor's License Board. The Contractor shall be required, whenever feasible, to obtain a minimum of three (3) bids for all work performed. All work performed by contractors shall be approved and authorized by the Qualified Homeowner, and shall be completed within a specified timeframe acceptable to Qualified Homeowner and contractors. From time to time, the Agency and Contractor shall coordinate inspection site visits to ensure that the work being performed on a Qualified Homeowner's home is being performed in a good workmanlike manner and in accordance with applicable codes (UBC, UPC, UMC, NEC and Health & Safety) and City Ordinances. D. Applicant Eligibility Requirements for the Program 1. "Qualified Homeowner" must be an owner occupant for a minimum period of one (1) year; on a case-by-case basis, and depending on the circumstances, this requirement may be waived by the Agency Executive Director or his/her designee; Contractor shall obtain evidence of ownership and length of residency. 2. Qualified Homeowner must complete a Program Application (see Exhibit "D" as an example) and meet the applicable income criteria (see Exhibit "A"). 3. All Qualified Homeowners must agree to attend a Maintenance Class conducted by Contractor, to sign a Maintenance Covenant and agree to live in their home for not less than one (1) year following completion of the work performed under the Program. The Contractor shall maintain accurate records for inspection by the Agency concerning income and program occupancy of all persons obtaining assistances from the Contractor pursuant to this Agreement. Contractor shall also provide quarterly reports to the Agency, or as necessary, upon the request of the Agency Executive Director. 3 CDC/2004-8 EXHmIT "D" REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO SINGLE FAMILY HOME IMPROVEMENT LOAN AND BEAUTIFICATION GRANT PROGRAM Application Instructions & Checklist You are applying for a grant and/or loan. Anyone living in the household must be listed on the application. Fill in all blanks as they apply to you. If necessary, you will be contacted to clarify the information. Please remember to sign at the bottom (homeowners: anyone who is on the title). Your personal information is kept confidential within the organization and City. Please provide us with the following information as it applies to you. o Property Ownership 1. Copy of current mortgage statement. 2. Copy of current year property tax bill 3. Copy of property insurance statement o Social Security Card(s) 1. Enclose copies for all individuals residing in the home o Evidence of Income 1. Copies of 2 most recent pay stubs 2. Evidence of alimony or child support, if received 3. Copy of most recent Federal tax return o Evidence of Government Assistance If you receive any of these benefits, please enclose a copy of the document which applies: 1. Statement of benefits for SSI, SSP, or AFDC 2. Statement of unemployment or disability benefits 3. Statement of pension or retirement benefits o Bank Statement 1. Enclose copies of current (2 months) checking and/or savings account statements (all pages) If you need help in completing the application or have questions, please call NHSIE, Rehab Division, at (909) 884-6891. Si usted necesita ayuda para completar esta aplicaci6n, favor de llamar a NHSIE. Nuestros empleados hablan espano!. NHSIE is a private, nonprofit corporation authorized by the Redevelopment Agency of the City of San Bernardino to administer their Program. NHSIE is a General Contractor (License #B-745831). CDC/2004-8 EXHIBIT "D" City of San Bernardino - Redevelopment Agency Beautification Grant Program Application Neighborhood Housing of the Inland Empire Services, Inc. (NHSIE) Applicant's Name (Last, First, MI) Applicant's Spouse's Name of Co-Applicant Street Address San Bernardino City/Zip Years at Residence: Household Size: Head of Household: o Male o Female Please describe the repairs you would like performed on your home: Social Security Number Applicant's Date of Birth Applicant's Phone Number Number of Minor Children (If Applicable) List Number of Children Under the Age of Six (6) II r . 'd h h List a . persons lvmg m reSl ence ot er t an vou: Emil loved Name Relationship Age Social Security # Yes No $ $ $ Child Support $ Total Monthly Income: Social Security Employment PensionlRetire Other/Real Prop. $ Ethnicity: (Please check all that apply) OSr. Citizen(s)-62 or older OFemale Head of Household o Hispanic 0 Asian/Pacific o Black o White, Non-Hispanic $ $ $ $ Total Annual Income Number of Persons Per Household 3 4 5 6 8 70,350 75,600 86,000 o Disabled-One or More o American Indian o Other I certify under penalty of perjury that the information provided above is correct to the best of my knowledge. I understand that the inclusion of any willful misrepresentation on this form constitutes ground for rejection of this application and recapture of any financial benefit I may have received. I authorize the NHS to examine and verify any and all information provided in this application. Signature Date Signature Date