HomeMy WebLinkAboutCDC/2006-50
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CDC/2006-50
RESOLUTION NO.
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE
EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE THE 2006 HOME
CHDO CAPACITY BUILDING AGREEMENT BETWEEN THE AGENCY
AND ARROYO V ALLEY COMMUNITY ECONOMIC DEVELOPMENT
CORPORATION, A NON.PROFIT CORPORATION
8 WHEREAS, the City of San Bernardino (the "City") is the recipient of the HOME
9 Investment Partnership Act ("HOME") formula Grant from the U.S. Department of Housing and
10 Urban Development ("HUD") to carry out HOME eligible activities in compliance with Title 24
11 CPR Part 92 Program Requirement ("Program"); and
12 WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency") is
13 designated as the administrator of the Program on behalf of the City; and
14 WHEREAS, not more than five percent (5%) of the HOME annual allocation is set aside
15 for and made available to designated and approved Community Housing Development
16 Organizations ("CHDOs") for operating expenses and capacity building, in accordance with
17 Program guidelines; and
18 WHEREAS, Arroyo Valley Community Economic Development Corporation, a non-profit
19 corporation ("Arroyo"), has met the CHDO requirements under Title 24 CPR Subpart "A," Section
20 92.2 of the HOME Program Final Rule and is eligible to receive and use HOME Funds; and
21 WHEREAS, Arroyo is requesting Fifty Thousand Dollars ($50,000) in CHDO Capacity
22 Grant to assist in Capacity Building and Planning efforts and, implementation of activities that are
23 eligible under the HOME Program and provides benefit to individuals or families that meet the
24 income requirement of Title 24 CPR, Part 92.217, as low- and moderate-income eaming less than
25 eighty percent (80%) of the Riverside/San Bernardino area median income; and
26 WHEREAS, in exchange for receiving the Capacity Building Grant, Arroyo will be
27 required to build or rehab, and sell one (1) single-family home to a low- and moderate-income
28 household within eighteen (18) months from the approval date of the Agreement; and
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CDC/2006-50
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1 WHEREAS, the Agency, in compliance with the Citizen Participation Plan and 24 CFR
2 570.302 and 24 CFR 91.105, has published in the San Bernardino County Sun newspaper on
3 October 21, 2006 and November 13, 2006, the required Public Notice amending the 2005-2010
4 Consolidated Plan and 2006-2007 Annual Action Plan allocating Fifty Thousand Dollars ($50,000)
5 in HOME Capacity Building Grant Funds to Arroyo.
6 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE
7 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS
8 FOLLOWS:
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Section 1.
The Commission hereby approves the Agreement and the Executive Director
10 of the Agency is hereby authorized and directed to execute, on behalf of the Agency, the HOME
11 CHDO Capacity Building Grant Agreement by and between the Agency and Arroyo ("Agreement")
12 in the amount not to exceed Fifty Thousand Dollars ($50,000) to carry out CHDO activities
13 pursuant to HOD federal regulations as provided for in the Agreement; a copy of said Agreement is
14 attached hereto, marked Exhibit "A" and incorporated herein by reference as though fully set forth
15 at length.
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Section 2.
The Executive Director of the Agency is hereby authorized to make changes,
17 clarifications, interpretations, and additions to the Agreement, provided such changes are non-
18 substantive and do not increase the monetary impact to the Agency, and as approved by Agency
19 Counsel.
20 Section 3.
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The Resolution shall become effective immediately upon its adoption.
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CDC/2006-50
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RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE
EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE THE 2006 HOME
CHDO CAPACITY BUILDING AGREEMENT BETWEEN THE AGENCY
AND ARROYO VALLEY COMMUNITY ECONOMIC DEVELOPMENT
CORPORATION, A NON-PROFIT CORPORATION
6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community
7 Development Commission of the City of San Bernardino at a j oint regular
meeting
8 thereof, held on the 20th day of November ,2006, by the following vote to wit:
9 Commission Members:
10 ESTRADA
11 BAXTER
12 VACANT
13 DERRY
14 KELLEY
15 JOHNSON
MC CAMMACK
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Aves
Navs
Abstain
Absent
x
x
x
x
x
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The foregoing resolution is hereby approved this 21st day of November
,2006.
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~~n
Co ity Development Commission
of the City of San Bernardino
24 Approved as to Form:
25 ~
By: l/;
26 Agency 0 el
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CDC/2006-S0
COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO)
HOME CAPACITY BUILDING GRANT AGREEMENT
(2006.2007 HOME FUNDS)
(Arroyo Valley Community Economic Development Corporation "Arroyo")
THIS CHDO HOME CAPACITY BUILDING GRANT AGREEMENT ("Agreement") is
made and entered into this 20th day of November 2006, by and between the Redevelopment Agency of
the City of San Bernardino, a public body, corporate and politic (hereinafter referred to as the
"Agency"), located in the City of San Bernardino and in San Bernardino County, and the Arroyo
Valley Community Economic Development Corporation ("Arroyo"), located at P.O. Box 1599, San
Bernardino, California 92402, a California nonprofit corporation, organized pursuant to Title 24 CFR
Subpart "G," Section 92.300, et seq., acting herein duly authorized by its Board of Directors.
RECITALS
WHEREAS, the City of San Bernardino (hereinafter referred to as the "City") has received
formula HOME Investment Partnership allocation for Fiscal Years 2006-2007 from the federal
Department of Housing and Urban Development ("HUD") to carry out eligible activities in accordance
with federal program requirements at 24 CFR 92 (the "Program"), and the Agency is designated the
administrator of the Program on behalf of the City; and
WHEREAS, not more than five percent (5%) of the annual HOME grant amounts may be set
aside and made available to designated CHDOs for capacity building and operating expenses, in
accordance with HUD guidelines, and those allowable expenses may include organizational support,
administrative expenses and operating expenses, per 24 CFR 92.208(a); and
WHEREAS, Arroyo is desirous of participating in activities eligible under the Program, and
further agrees that the beneficiaries of its activities under the Program and this Agreement, are or will
be individuals or families who meet the income eligibility guidelines at Title 24 CFR part 92.217; and
WHEREAS, the Agency deems the activities to be provided by Arroyo as consistent with and
supportive of the Program and is consistent with the City's 2005-2010 Consolidated Plan and Housing
Element, and that Arroyo requires the financial assistance of the Agency to implement its activities;
and
WHEREAS, the Agency, acting in the capacity of Administrator, will monitor and administer
Arroyo to ensure compliance with all HOME Program requirements, and that Arroyo, in its capacity as
a CHDO, will comply with all Program requirements under 24 CFR 92.
NOW, THEREFORE, THE PARTIES MUTUALLY AGREE AS FOLLOWS:
I. CERTIFYING THE NONPROFIT AS A CHDO:
Arroyo has satisfied the definition of a CHDO as stated in 24 CFR Subpart A, Section 92.2 of
the HOME Final Rule. To qualify for receipt and use of federal HOME Funds as a CHDO, Arroyo has
met the following requirements:
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A. Legal Status. The nonprofit organization is organized under state or local laws, as
evidenced by a charter or articles of incorporation. No part of its net earnings inure to the benefit of
any member, founder, contributor or individual, as evidenced by the same. The nonprofit organization
must have a tax exemption ruling from the Internal Revenue Service ("IRS") under Section 501(c) of
the Internal Revenue Code of 1986, as evidenced by a 501(c) certificate from the IRS. Also, the
nonprofit organization has among its purposes, the provision of decent housing that is affordable to
low and moderate-income people, as evidenced by a statement in the organization's charter, articles of
incorporation, by-laws or resolutions.
B. CaDacitv. The nonprofit organization conforms to the financial accountability standards of
24 CFR 84.21, "Standards for Financial Management Systems", as evidenced by a notarized statement
by the organization CEO or president, a CPA or a HUD-approved audit summary. Arroyo has a
demonstrated capacity for carrying out activities assisted with HOME Funds and affordable housing
programs through the stated experience of key staff members or contract(s) with consultants who have
experience with related projects to train key staff. Also, Arroyo has shown a history of serving the
community where housing to be assisted with HOME Funds has been used and a statement that
documents at least one (I) year of experience in serving the community is on file with the Agency.
C. Organizational Structure. The governing board of Arroyo consists of at least thirty-three
percent (33%) residents of low-income neighborhoods, other low-income community residents, or
elected representatives of low-income neighborhood organizations as evidenced by charter, by-laws or
articles of incorporation. Arroyo provides a formal process for low-income, program beneficiaries to
advise the organization in all of its decisions regarding the design, development and management of all
affordable housing projects, through its by-laws, resolutions or a written statement of operating
procedures approved by the governing body of Arroyo. While Arroyo may be chartered by the state or
a local government, the public body may not appoint more than one-third (\I,) of the membership of the
organization's governing board and no more than one-third (\I,) of the governing board members are
public officials as evidenced by charter, by-laws or articles of incorporation. Also, if Arroyo is
sponsored or created by a for-profit entity, the for-profit entity may not appoint more than one-third
(\I,) of the membership of Arroyo's governing body, and the board members appointed by the for-
profit entity may not, in turn, appoint the remaining two-thirds (%) of the board members, as evidenced
by the same.
D. RelationshiD with For-Profit Entities. Arroyo is not controlled, nor receives directions from
individuals or entities seeking profit from the organization, as evidenced by the organization's by-laws
or a memorandum of understanding. Arroyo may be sponsored or created by a for-profit entity,
however:
1. The for-profit entity's primary purpose does not include the development or management of
housing, as evidenced in its by-laws; and
2. Arroyo is free to contract for goods and services from vendor(s) of its own choosing, as
evidenced in its by-laws, charter or articles of incorporation.
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II. SCOPE OF SERVICES AND COMPENSATION
A. Amount of Grant. Pursuant to the conditions being met in Section 1. above, the Agency
agrees to grant Fifty Thousand Dollars ($50,000) (the "Grant") of the HOME Investment Partnership
Funds for the capacity building and operating expenses of Arroyo as a CHDO pursuant to the HOME
Investments Partnership Act. Said Grant represents no more than ten percent (10%) of Arroyo's 2006-
2007 annual budget.
B. Use of Grant Funds. Proiected Budget and Task to be Performed. The Grant funds will be
used to pay the CHDO capacity building and operating expenses of Arroyo including, but not limited
to, the costs of salaries, wages, insurance auditing, employee training and lease payments; utilities;
taxes; legal; accounting; consultant services; purchase of materials and supplies to enable Arroyo to
build or rehab, and sell one (I) single family home to a low and moderate-income household within
eighteen (18) from and after the date of this Agreement. Refer to Exhibit "A" of this Agreement for
specific budget line items. The requirements and limitations on the receipts of these funds by CHDOs
are set forth in CFR 92.300( e) and (t). Should Arroyo fail to perform and achieve these tasks, Arroyo
will be required to repay the Agency the full amount of Fifty Thousand Dollars ($50,000) with six
percent (6%) interest per annum, compounded annually, calculated from the original disbursement date
of the Grant funds, and payable in whole as to principal and interest, not later than three (3) months
after the expiration of said eighteen (18) month period.
C. Other Program Requirements.
I. Arroyo must carry out each activity in compliance with all federal laws and regulations
described in Subpart H of24 CFR 92 and outlined hereinafter, except that Arroyo does not assume the
Agency's/City's responsibility for environmental review in Section 92.352 or the intergovernmental
review process in Section 92.357. These federal laws and regulations must be complied with as
follows:
a. Equal Opportunitv. No person shall be excluded from participation in, be denied the
benefits of or be subjected to discrimination under any program or activity funded in
whole or in part with HOME Funds. In addition, HOME Funds must be made available
in accordance with all laws and regulations listed in Section 92.350(a).
b. Fair Housing. In accordance with the certification made with its housing strategy, each
participating jurisdiction must affirmatively further fair housing. Actions described in
Section 570.904(c) of Title II of the Cranston-Gonzales National Affordable Housing
Act will satisfy this requirement.
c. Affirmative Marketing. Arroyo must adopt affirmative marketing procedures and
requirements for HOME-assisted housing projects of four (4) units or more. These
must include:
(I) Methods for informing the public;
(2) Requirements and practices that Arroyo must adhere to in order to carry out the
Agency's/City's affirmative marketing procedures and requirements;
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(3) Procedures used by Arroyo to inform and solicit applications from persons in the
housing market area who are not likely to apply without special outreach;
(4) Records that will be kept describing actions taken by Arroyo to affirmatively
market units and records to assess the results of these actions; and
(5) A description of how Arroyo will assess the success of affirmative marketing
actions and what corrective actions will be taken where affirmative marketing
requirements are not met.
d. Displacement. Relocation and ACQuisition. Consistent with the other goals and
objectives of Subpart H of 24 CFR 92, Arroyo must ensure that it has taken all
reasonable steps to minimize the displacement of persons (families, individuals,
businesses, nonprofit organizations and farms) as a result of its project activities
undertaken pursuant to this Agreement. Arroyo agrees to minimize displacement in
accordance with Section 92.353.
e. Conflict of Interest. Arroyo will hereby comply with all requirements set forth
regarding conflict of interest provisions as they apply in Section 92.356.
f. Debarment and Suspension. As required in Section 92.357, Arroyo will comply with all
debarment and suspension certifications.
g. Flood Insurance. Under the Flood Disaster Protection Act of 1973, HOME Funds may
not be used with respect to the acquisition or rehabilitation of a project located in an
area identified by the Federal Emergency Management Agency ("FEMA") as having
special flood hazards, unless:
(1) The community in which the area is situated is participating in the National Flood
Insurance Program, or less than a year has passed since FEMA notification
regarding such hazards; and
(2) Flood insurance is obtained as a condition of approval of the commitment. If the
Agency is located in an area identified by FEMA as having special flood hazards,
upon notification by the Agency or FEMA, Arroyo is responsible for assuring that
flood insurance under the National Flood Insurance Program is obtained and
maintained.
2. Labor. Any contract for the construction or rehabilitation of affordable housing with twelve
(12) or more units assisted with funds made available under Subpart H of 24 CFR 92 must
contain a provision requiring that not less than the wages prevailing in the locality, as
predetermined by the Secretary of Labor pursuant to the Davis-Bacon Act (40 U.S.C. 2761-
5), will be paid to all laborers and mechanics employed in the development of affordable
housing involved, and such contractors must also be subject to the overtime provisions, as
applicable, of the Contract Work Hours and Safety Standards Act (40 U.S.C. 327-332).
The Arroyo contractors, subcontractors and other participants must comply with regulations
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issued under these Acts and with other federal applicable federal laws. The Arroyo will
require certifications as to compliance with the provisions of Section 92.354 before making
any payment under such contract.
3. Hold Harmless. Arroyo agrees to indemnify, defend (if requested by the City and/or the
Agency), and hold harmless the City and the Agency, their boards, commissions, elected
officials, officers, attorneys, agents and employees from any and all claims and losses
accruing or resulting to Arroyo or any and all contractors, subcontractors, materialmen,
laborers and any other person, firm or corporation furnishing or supplying work, services or
supplies in connection with the performance of this Agreement, and from any and all claims
and losses accruing or resulting to any person, firm or corporation who may be injured or
damaged by Arroyo in the performance of this Agreement. Without lirniting Arroyo's
indemnification of Agency, Arroyo shall provide and maintain at its own expense during
the term of this Agreement, the following program(s) of insurance covering its operation
hereunder. Such insurance shall be provided by insurer(s) satisfactory to the Agency and
evidence of such programs satisfactory to the Agency shall be delivered to the Executive
Director of the Agency or hislher designee within ten (l0) days after the effective date of
this Agreement.
General Liabilitv: A program including, but not limited to, comprehensive general
liability with a combined single limit of not less than One Million Dollars ($1,000,000) per
occurrence. Such insurance shall be primary to and not contributing with any other
insurance maintained by the Agency/City, and shall name the Agency and the City, their
boards, commissions, elected officials, officers, attorneys, agents and employees, as
additional insured. Such insurance shall require the Agency be notified at least ten (l0)
days in advance of any change or cancellation of said insurance.
D. ReQuest for Disbursement of Grant Funds.
1. Arroyo may request Grant funds monthly, on a reimbursement basis, for eligible costs, on a
prorata basis, up to maximum of Fifty Thousand Dollars ($50,000). The amount of each request will
be limited to the amount substantiated in the invoices submitted for costs incurred in accordance with
the budget attached hereto as Exhibit "A. Line item within the budget may be modified with the
approval of the Agency Executive Director
E. Records and Reports.
1. The Agency will require that Arroyo maintain the following records and reports in order to
assist the Agency/City in meeting its record keeping and reporting requirements:
a. Records, including individual project and construction records and a running log
demonstrating compliance with the applicable provisions of Section 92.508(2) of the
HOME Investment Partnership Program, if any; and
b. Continuing compliance with the HOME Program shall be certified and reported to the
Agency on a quarterly basis to comply with HOME reporting requirements; and,
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c. Any other legal reports and/or records requested by the Agency/City to document the
provisions of all affordable housing projects or programs pursuant to this Agreement.
2. Arroyo shall retain and provide access to all records for the period of five (5) years from the
date of this Agreement in accordance with the requirements of Section 92.508(6)(c) and (d).
m. GENERAL PROVISIONS:
A. Enforcement of the Agreement.
1. The Agency, on behalf of itself or the City, shall have the right, by prior written notice to
Arroyo, to enforce by deed restriction, the affordability requirements in Section 92.254, or any other
such violation, as is brought to the attention of the Agency or the City regarding the property(ies) being
developed or rehabilitated with the use of HOME Funds pursuant to this Agreement, if any. In the
event of a breach of any condition or provision hereof, the Agency shall have the right, by prior written
notice to Arroyo, to suspend or terminate this Agreement if Arroyo materially fails to comply with any
of its terms and demand repayment of the Grant.
2. The Agency, at its discretion, may terminate this Agreement, in whole or in part, by giving
Arroyo thirty (30) calendar days written notice or in accordance with 24 CPR 85.44, which provides in
part that suspension or termination may occur if Arroyo materially fails to comply with any term of
this Agreement.
B. Monitoring.
1. The Agency is responsible for managing the day-to-day operations of the HOME program;
for monitoring the performance of all entities receiving HOME Funds from the Agency to ensure
compliance with the requirements of Subpart K, 24 CPR 92, and for taking appropriate action when
performance problems arise.
2. Not less than annually, the Agency will review the activities of Arroyo, to assess
compliance with the requirement of Subpart K, 24 CPR 92, as set forth in this Agreement.
C. Notices. Any notice requirement set forth herein shall be deemed satisfied three (3) days
after mailing of the notice first-class United States certified mail, postage prepaid, addressed to the
appropriate party as follows:
CHDO:
Arroyo Valley Community Economic Development Corporation
Attn.: Antonio Dupre, President
P.O. Box 1599
San Bernardino, California 92402
Redevelopment Agency of the City of San Bernardino
Attn.: Maggie Pacheco, Executive Director
20 I North "E" Street, Suite 301
San Bernardino, California 92401
AGENCY:
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Such addresses may be changed by notice to the other party given in the same manner as
provided above.
D. Attorney's Fees. In addition to any other remedies provided hereunder or available
pursuant to law, if either party brings an action or proceeding to enforce, protect or establish any right
or remedy hereunder, the prey ailing party shall be entitled to recover from the other party its costs of
suit and reasonable attorney's fees. The costs, salary and expenses of the City Attorney and members
of his office in enforcing the Agreement on behalf of the Agency or the City shall be considered as
"attorney's fees" for the purposes of this paragraph.
E. No Third Parties Benefited. This Agreement is made and entered into for the sole
protection and benefit of the Agency and the City, their successors and assigns, and Arroyo, its
permitted successors and assigns, and no other person or persons shall have any right of action hereon.
F. Agency to File Notices. Arroyo irrevocably appoints, designates and authorizes the Agency
as its agent (said agency being coupled with an interest) to file at its option for record any notices of
completion, cessation of labor, or any other notice that the Agency deems necessary or desirable to
protect its interest hereunder.
G. Actions. The Agency or the City shall have the right to commence, appear in, or defend
any action or proceeding purporting to affect the rights, duties, or liabilities of the parties hereunder, or
the disbursement of any proceeds of the Agency allocation of HOME Funds.
H. Successors and Assigns. The terms hereof shall be binding upon and inure to the benefit of
the successors and assigns of the parties hereto; provided, however, that no assignment of Arroyo's
rights hereunder shall be made, voluntarily or by operation of law, without the prior written consent of
the Agency, and that any such assignment without said consent shall be voided.
I. Construction of Words. Except where the context otherwise requires, words imparting the
singular number shall include the plural number and vice versa, words imparting persons shall include
firms, associations, partnerships and corporations, and words of either gender shall include the other
gender.
J. Partial Invalidity. If any provision of this Agreement shall be declared invalid, illegal, or
unenforceable, the validity, legality, and enforceability of the remaining provisions hereof shall not in
any way be affected or impaired.
K. Governing Law. This Agreement and any other instruments given pursuant hereto shall be
construed in accordance with and be governed by the laws of the State of California and the pertinent
HOME regulations.
L. Amendment. This Agreement may not be changed orally, but only by agreement in writing
signed by Arroyo and the Agency. The Executive Director of the Agency is authorized to make
nonsubstantive changes to this Agreement as authorized by the Resolution approving this Agreement.
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M. Approvals. Where an approval or submission is required under this Agreement, such
approval or submission shall be valid for purposes of this Agreement only if made in writing.
N. CaPtions and Headings. Captions and headings in this Agreement are for convenience of
reference only, and are not to be considered in construing the Agreement.
O. Entire Agreement. This Agreement shall be executed in triplicate, each of which is deemed
to be an original. This Agreement includes eight (8) pages and Exhibit "A" that constitute the entire
understanding and agreement of the parties.
This Agreement integrates all of the terms and conditions mentioned herein or incidental
hereto, and supersedes all negotiations or previous agreements between the parties with respect to the
CHDO operations.
P. Authoritv. The individuals executing this Agreement and the instruments referenced herein
on behalf of Arroyo each represent and warrant that they have the legal power, right and actual
authority to bind Arroyo to the terms and conditions hereof and thereof.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the
day and year fIrst above written.
ARROYOVALLEYCO~TYECONOMUC
DEVELOPMENT CORPORATION,
a California nonprofIt corporation
BY:~~
Antonio Dupre, President
REDEVELOPMENT AGENCY OF THE CITY OF
SAN BERNARD ,
a public body, co orate
By:
Maggie Pacheco, Executive Director
Approved as to Form and Legal
Content:
BY:~
Agency Couns
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EXHIBIT "A"
EXHIBIT "A"
Specific Use of Requested Capacity Building Funds (HOME)
Detailed Budget
Staffim!
Budl!eted Amount
Chief Executive Officer
VP Fuod Development
$ 10,000
$ 18,000
Total Staffing $ 28,000
Office EXDenses
Training/Prof. Development $ 2,000
Office Space $ 6,000
EquipmentIFumiture $ 0
Office Supplies $ 600
Postage $ 400
Phone $ 1,300
Insurance $ 3,000
Accouotant $ 1,000
Legal $ 1,000
Brochures/ PR Material/Website Development $ 700
Other EXDenses
Consultant Services $ 6,000
Total Expenses $ 22.000
Total Specific Use Budget $ 50.000