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Oj~j'Cj'IO~'~L
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: Frank Schnetz, Councilman
Subject: Presentation by Acquisition,
Rehabilitation and Resale (ARR)
Contractors regarding motion passed at
April 2, 2001 meeting of the Mayor and
Common Council and Community
Development Commission which
requires independent examination of all
documents associated with Mortgage
Assistance Program loans, and loan
underwriting of all ARR loans by
independent loan underwriters.
MICC Meeting Date: April 16, 2001
Dept: Council Office
Date: April 11, 2001
Synopsis of Previous Council Action:
April 2, 2001 Community Development Commission approved motion requiring
independent examination of all documents associated with Mortgage Assistance
Program loans, and loan underwriting of all Acquisition, Rehabilitation and Resale loans
by independent loan underwriters.
Recommended Motion:
Discuss and take possible action regarding the motion passed at the April 2, 2001,
meeting of the Mayor and Common Council and the Community Development
Commission which requires an independent examination of all documents associated
with all Mortgage Assistance Program loan applications, and loan underwriting of all
ARR loans by independent loan underwriters.
~~~~
Signature
Contact person: Frank Schnetz
Phone: 5188
Supporting data attached:
No
Ward:
FUNDING REQUIREMENTS: Amount: None
Source: (Acct. No.)
(A~r.t np~~riptinn)
Finance:
Council Notes:
~ II (pI 0)
ND. R.3g
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'Apr 10 01 08,31. C.~. d. EI.~.nci.
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DATE:
April 10, 2001
Hon. FRink Schnitr
Member, San B.rnardino City CQuncil
Fall (909) 88900625
RUli&e1l E. 8l_tt
Ac:qul'ltiOn, Rehabilitation & Relll. Program (ARR)
TO:
VIA:
FROM:
RE:
Thank yo~ for your .fforte In .rr.~in9 to hive our ARR program iMue put b.fore the city
council meeting on April 18\11. The ARR contractors would like to have 1() minutes to give a brief
overvi_ of tile progr.m.
I currently have two buyers thlt n r.nte", in Sin Bernardino who ara fully qualified bul due to
the mor.torium, their loanl hIVe not fund.d. Both Mr. /I. Mrt. Hernandez .nd Mr. Tover h.ve given
the requir.d 3lkl.y notice to their landlord. ..,d Mr. '/lPNinll to move into their homea the Iil1lt
part of April The in.bility to go forward with tile MAP program ia QIIuainll I MV'''' harolhlp on OUf
bUyers. especially the Hem.ode: "mlly.
Addition.ly, we have four other bUY"'" who Ire in veriOUI staue. of the buying procns who
becaule of the ul'lcelttllnty of the elti4It cjl~on on !hilt program are v{!Jry MI'VOU$ and n_ the
l'QIe"urance that the city cOl.lncilsupport will prollidt.
The purpO$lil of our apPIIl'llnce It the April 161/1 city council meell~ i. to pr",nt the
!nformalion thai WO\Ild 'Mure the city council th.t the program ill ~ln9 Idmlnistertcl accOi\1ing to
gulde!ines and eneoul1lge public IUPportfor the ARR program.
04/10/2001 15:31 9898890525
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FE SCHNETZ
AHR INDUSTRIES INC
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~ar Mr Schn~,
I am writing to express my ClOI108m Iii an active participant In the dtY. Acquisition, .
Rehlbiliwlien and Fle8ale Program wlll1 me resolution tI'Iat was paned at tn. City Council
meeting held April 2. requlrlng the Economic Development Agency tc conduct an )
~ndentexaminatlon oIl1l1lO8n documentllllllOC1altd with each app\ieatkln, .'
I believe this resolution is l'Idundantln that the ECA stall a1rMdy CQI'1duCl8 a thorough
review of tach loan package plior to issuing the city'S down paymenI ..sistance funds to
ewcrow. Additionally, thI; resolution was made based on activities that allegedly occurred
morll Ihan lI1ree ~ars ago by QnII pal1iclpanl, when the prQQram was substantfally dlllllfenl
than n i8 today. All at the current act/118 partiCIpants Il'l trle progrll'Tl, il1Cludlng ANFt
Induslries. Inc.. began wol\Qng with the clly 1111999 or 1llt8r. The par1iQpantli and 1I1e city'S
deeignatecl MAP lendertl haw .11 undergor1$ extensive training in the doculT1entatiQl1 lor the
morlgage <lalli8Tanee program. Additionally, all 01 our lale. trar1ll&eliona .,. conducted at
arm'slangth wilh the lenders; O\,Ir CQlT1PerlY has no InflU$f'lC;e on whether or nO! buyers
receiw lOIn app~al.
The City Councirs decleion hes already had. lignllicanl finanelallmpaCI on our company
Even belor, the c;Quncil m.t jg dillCUaalhil issue, we had thrIM hom" thel WIt'" ready tc
close escrow; the rnor1gage assistance Qt1e(;!ui had been cut and wwe Wf,iling to be sigJled
by thl cit-I attorney. FolIQWing thl council meeting, th&S8 ohllOks wer' I'leId unttl Ye8terday
aftllr the city attorney's office could audit the liles. I should aillo nete that the oity attomey'8
office reund 110 d.flCi.~ with the" fiie, This tlelayed lhe close oleecrow by one wwk
whioh atfectlld our buyers' ability 10 move In tc their new home. MlInyof our buyers me.ke
0d/10/2eCl 15:31
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~~X l!J2/02
~ 10, 2001
tho decision to purcl1aSEl hOfNlllln San 8e(l'l8rdino primanly lle08uSll tile city's down
payn,,,,,t all$is~nc:e prog.....m makee thu dream of home QIovnel8nlp so ao:::eseble.
r ampering with the IOI6IlSli1 of funds that havv already belln COfMlmed to lh"1I famllitl
:rroll9fl r8SeNalior1lettlrs tarni",," thelapulaliQn 01 b01h the "F'R program lIIlCI ~e city,
The oelay of tneee escrow. QO atfGtts lhe 1Xa\ leal estate community, by delaying tho
pay"",nt of commissions to real 8lIrate agen15 who WO!k hard to (I'l8i(8 Ihis plooram a
el.lCcGss. f"inal/y, II.,. clty'ala81 m'flute decision to audit lhe5& li!es delays ltl8 payments ot
eettl~n11unc:l8 \0 our company,
II.Inder5tand \he City Council's conCllm to IIfl1ure IMt lhe prll'II'ion of mortg9 _,lance
is c:ondu<:.1ed wrtr"lin tl1l1 s\ilnclards flGt by HI)O As a membll' of 1118 C(ll'l1l'I'Unily who 1'188 a
$igl1~icfltlt inveSlrnen: in \his program and l/Ie clIy, our priority is !he( whatever rllq~l!lemen:s
are adopted by City Council do nOI delay the eiCfr:JW proceSS. Tne EDA procedurlls alreadj
reqvire an tIig'" day wa"'ng period 10 allOW fhwjr ,Iaft to re.,.,'" the Illes: anya(kMonal
re\18V. stiOuld be able to ~ al;;OOrnpll_hed wl\t'lln th~ same eighl dIly perlOCl,
i I/ali.le me opportunity to addr8t15 tfi. City COIJrlCll about our CllI'1C&rnll with this decision,
SinCllrety .
Agustin N, AodrigUlll . prvsi\Wnl
. Pa9" 2