The URL can be used to link to this page

Home My WebLink About1979-394 1 RESOLUTION NO..29 ~91~ i 2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE `EXECUTION OF AN AGREEMENT WITH THE NATIONAL NEIGHBORHOOD REINVEST-: 3 ~MENT CORPORATION RELATING TO THE NEIGHBORHOOD HOUSING SERVICES PROGRAM. 4 i BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY II 5 {OF SAN BERNARDINO AS FOLLOWS: 6 SECTION 1. The Mayor of the City of San Bernardino is I ~ 7 Thereby authorized and directed to execute on behalf of said City g ~,`an agreement with the National Neighborhood Reinvestment Corpora- q ~'Ition relating to the Neighborhood Housing Services Program, a I 10copy of which is attached hereto, marked Exhibit "A" and incor- !f i ' ri iiporated herein by reference as fully as though set forth at 12 i4 length . f I HEREBY CERTIFY that the foregoing resolution was duly ~q ~'~adopted by the Mayor and Common Council of the City of San t5 Bernardino at a meeting thereof, held 16 on the d~ day of (2/~,,,~.~~ 1979, by the following 17 vote, to wit: / lg AYES : Councilmen~/T ~,~?~a~v ` ^~~~-F- t9 .~i PYa~/i .Cl~•~ui~ i 20 NAYS : 21 ABSENT: 7 22 23 City C er 24 The foregoing resolution is hereby approved this day 25 of .£~c~i(. 1979. 26 0 of h ty o Bernar ino 27 Approygd as to form•~ 28 ~~i~~~/Q~ ' ity At orney ~ ,.,,~.,.w ~~_..-.H_......~ , . ~ tJATIONAL NEIGHBORHOOD REINVESTMENT COR?ORATION NHS DEVELOPMENT AGREEMENT ~ NATIONAL NEIGHBORHOOD REINVESTMENT CORPORATION NHS DEVELOPMENT AGREEMENT This agreement, made between the National Neighborhood Reinvestment Cor- poration, a non-profit, non-government Corporation chartered by the Congress (Neighborhood Reinvestment) and the City of San Bernardino (City), provides for the development of a Neighborhood Housing Services (NHS) Program in the City of San Bernardino in accordance with the following provisions: The NHS Program An NHS program includes the development of a working relationship between residents of a specific neighborhood and a group of financial institutions in cooperation with city government. It involves the creation of a Re- volving Loan Fund which would be controlled 6y the NHS. The NHS assists residents of the neighborhood to improve their homes and bring them to at least minimum cade standards, by providing counseling, assistance in dealing with contractors, referrals to private financial institutions, and in cases where the homeowners are unable to meet commercial credit standards, by providing direct loans at flexible ratzs anc terns. Developmental Process Bringing a viable tJHS into operation envisages an effort lasting at least 10 to 12 months, involving a careful process which has bzzn developed over the past `our years of successful implementation of hiHS programs in over 50 cities. NHS represents a sophisticated blend of private-public-community in- volvement, and must be constructed with the greatest care. The first months are spent in developing working relationships with local govern- me~~t, community and financial industry representatives, and selecting a local staff person with the skills and knowledge about the local scene needed to work out cooperative relationships, under the super- vision of PJeighberhood Reinvestment`s Field Representative and Field Supervisor. In cooperation with the District Federal Home Loan Bank, the District Federal Reserve Bank, the Federal Deposit Insurance Corporation, the Office of the Comptro]ler of Currency, regional officials of the National Credit Union Administration, and State bank and savings and loan supervisors, as appropriate, Neighborhood Reinvestment will help convene financial institutions, and obtain their interest in the program. One or .more meetings of industry leaders called by the regulatory agency heads should take place before the actual Workshop program begins. When the necessary relationships have been developed, a 24-week workshop process is commenced wherein the concept is introduced to a group of approximately 45 persons about one-third each from financial institu- tions, the community at larte, and local government and regulatory bodies). These individuals adapt the NHS model to local institutions and situations and form a committee structure which works out the details of incorpora- tion, funding, neighborhood priorities, etc. I <<,/ page 2 The Workshop activities include: (1) a two or three-day session (Plan- ning and Orientation Workshop) followed by six to eight creeks of committee work; (2) a two-three hour session (Site Selection Workshop) followed by six to eight weeks of committee work; (3) a one and a half day session (Resident Inclusion Workshop) followed by four to six weeks of committee work; (Q) a two-three hour session (Orientational D1eeting) followed by a month of committee work; and (5) a two-three hour session (Incorporation Meeting) resulting in the actual incorporation of a local, non-profit NHS. Rfter incorporation, the new organization is aided in obtaining its non- profit tax status, in obtaining foundation support and in selecting and training permanent staff. Neighborhood Reinvestment's staff (local and regional) then vrorks for a short period with the NHS board and the newly hired NHS staff in setting up work procedures and defining roles and responsibilities. When the program has become fully operational, an informational seminar is arranged for lending officers and appraisers of participating financial institutions, fee appraisers, representatives of private mortgage companies, and regulatory agencies for liaison and in- formational assistance, and the NHS becomes an independent private entity. Time and Performance Neighborhood Reinvestment estimates that 10 to 12 months c` developmental work will be necessary before the NHS program can be incorporated. This time period is based on past experience; failure to complete the NHS developmental process within the estimated time period sJ;a11 not constitute by itself a breach of the contract. Program implementation typically comes a few months after incorporation. City Involvement in the Developmental Process City representatives shall work closely with the developmental program by participating in decisions on reinvesting in the selected neighborhood. 1. The Neighborhood Reinvestment staff will maintain liaison with the City during the developmental program. Appro- priate City staff members shall be invited to participate in the k'orkshop activities. . 2. During the developmental program, expressions of neigh- borhood desires in regard to services and public improve- ments and amenities will be obtained. In discussion with City officials, an agreement will be reached on attainable goals and timetables of improvements. 3. Where City services are in need of improvement to upgrade the neighborhood environment, these services shall be improved by the City. Where public improvements and amenities are in disrepair or lacking, the City shall improve or provide them. 4. The City agrees to provide sensitive, systematic, door- to-door housing code inspection to be undertaken in the ' - NHS neighborhood with appropriate staff. c`; ~ J~ page 3 5. The City agrees to provide a mechanism to place Section 8 rental housing assistance in the NHS neighborhood. 6. The City agrees to provide City staff resources in data gathering and analysis for program development. Termination by Neighborhood Reinvestment due to Adverse Factors Adverse factors could arise which would make the development of an NHS .program impossible. These include the inability to retain the coopera- tion of a sufficiently large number of financial institutions to support the program, determination that there were not sufficient public or philanthropic resources to develop adequate revolving loan funds, or the development of neighborhood antagonism to the program or political opposition to it. In the event such conditions arose and could not be overcome, Neighborhood Reinvestment would inform the City and return any unused portion of budgetary support which has been provided for the developmental program. Developmental Cost The City agrees to pay the sum of $35,000 to the National Peighborhood Reinvestment Corporation upon execution of this agreeme?1t as budgetary support for the developmental program. Payment must be made payable to the National ~eighborhood Reinvestment Corporation and foryiarded c/o: FZ?:A~CE DEPARTMENT RATIONAL NEIGHBORHOOD REINVESTMENT CORPORATION 1700 "G" Street, N. W. - 5th Floor S;ashington, D. C. 20552 Developmental hudaet The following b~.:dget indicates the estimated expenses comprising the developmental cost of $35,000. Neighborhood Reinvestment Corporation reserves the right to change allocations among the budget items in accordance with actual expenses. Local Staff (full-time, approximately 11 months) $13,500 Fringe costs (FICA, Life and Health insurance for. local staff) 2,750 Workshop Expenses Lodging, meals, meetings 6,000 speakers, resource persons 3,000 participants' travel 5,000 Support Services Board orientation, and (as needed) Executive Director training, training for housing code officials, and loan committee training, re- sources for board committees. 2,000 Miscellaneous Materials, postage, printing, telephone, contingencies 2,750 TOTAL $35,000 _ r$ - 1 page 4 Any unexpended balance of developmental funds will be made available to the NHS corporation. 1 Support of the NHS Operating Budget Operating expenses for the NHS organization will approximate $70,000.00 per year, per neighborhood, on an ongoing basis. Neighborhood Reinvest- ment will, as part of the developmental process, endeavor to obtain pri- vate sector support for the operating budget. If necessary the City shall contribute the balance of teh NHS's operating budget to the extent that Community Development funds are available for this purpose. Support of the NHS Revolving Loan Fund The NHS Revolving Loan Fund must be built up to a total of $300,000.00 or more per neighborhood over a two or three year period. In order to help ~ capitalize the Revolving Loan Fund, Neighborhood Reinvestment agrees that upon successful development of the NHS, it shall grant 550,000 for a single neighborhood program, or $100,000 for a multi-neighborhood. program. The City agrees that, upon establishment~of the NHS Corporation, it shall grant the sum of $ 300,000 over a three year period to the NHS to capi- talize its Revolving Loan Fund. Said funds shall be conveyed to the NHS corporation in lump sums, $SO,000in FY 1980, $ 100,000in FY 1981, and ' $150,000 in FY 1982. IN WITNESS WHEREOF, the parties hereto have caused this contract to be . executed as of the date first above written. Executed this ,3~ day of -~~U"~,~t~ , 1979 . TTEST: The Cit of San ernar 'n Y ?!Q/ Signed• ity Cleric Apar d as to for Title ity At orney NATIONAL NEIGHBORHOOD REINVESTMENT CORPORATION Wm. A. Whiteside, Executive Director Date: /3- J9