HomeMy WebLinkAbout1984-562
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RESOLUTION NO. 84 - 5 6 2
3 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING
EXECUTION OF LOAN AGREEMENT BETWEEN CITY OF SAN BERNARDINO AND SAN BERNARDINO
4 NEIGHBORHOOD HOUSING SERVICES, INC., FOR PROVIDING HOUSING TO PEOPLE OF LOW
AND MODERATE INCOMES.
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BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
6 BERNARDINO AS FOLLOWS:
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SECTION 1.
The Mayor of the City of San Bernardino is hereby
8 authorized and directed to execute on behalf of the City that certain Loan
9 Agreement between the City of San Bernardino and San Bernardino Neighborhood
10 Housing Services, Inc., a copy of which is attached hereto and incorporated
11 herein by reference, under which agreement the City of San Bernardino makes
12 available to San Bernardino Neighborhood Housing Services, Inc., the sum of
13 $60,000, $50,000 of which is a loan from the City of San Bernardino's
14 Community Development Block Grant funds, and $10,000 of which passed through
15 the City of San Bernardino from a grant for that purpose issued by the County
16 of San Bernardino from its Community Development Block Grant funds. The loan
17 shall be a revolving loan, to be utilized by the San Bernardino Neighborhood
18 Housing Services, Inc., initially for construction of a housing program, and,
19 following construction of those houses, for development of a second phase of
20 owner built housing. The loan shall be repaid to the City from the proceeds
21 of the sale of the second phase housing.
22 I HEREBY CERTIFY that the foregoing resolution was duly adopted by
23 the Mayor and Common Council of the City of San Bernardino at
24 an adiollrned (reil!J.ffi,g thereof, held on the 7.0th
25 1984, by the following vote, to wit:
day of np("pmhpT"'
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AYES:
Councilmen Reill
NAYS:
Ouiel. Frn7.iAr Stri~klAr
None
ABSENT:
Council Member Castaneda
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City Clerk
8 of December
The foregoing resolution is hereby approved
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, 1984.
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13 Approved as to form:
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A ' I City Attorney
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San Bernardino
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LOAN AGREEMENT
Loan No: 1m -(JtJ/ - Dt. - ....f{- 60',{'S
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LENDER: City San ernardino
300 North -D- Street
San Bernardino, California
BORROWER: San. Bernardino Neighborhood
Housing Services, Inc.
1296 North Mt. Vernon
San Bernardino, CA 92411
ATTENTION:
Antolin Gomez
Executive Director
REGARDING:
Owner Built Housing Program
Land Acquisition/Administrative
Funding
RECITALS
The City of San Bernardino, a municipal corporation, hereinafter
referred to as "City", is entitled under the Code of Federal Regulations to
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receive Community Development Block Grant funds from the United States
Department of Housing and Urban Development. The City wishes to carry out the
national housing objective of providing decent, safe, sanitary, and affordable
housing to low and moderate income individuals.
The San Bernardino Neighborhood Housing Services, Inc., hereinafter
referred to as "NHS", is a California non-profit corporation established to
revitalize economically depressed neighborhoods by stabilizing the housing
stock through the rehabilitation and acquisition of properties.
Under the terms of said Agreement, City has made available to NHS funds
in the amount of $60,000 for the purpose of funding a deferred loan and an
administrative grant by and between City and NHS in the Agreement hereunder.
NHS wishes to borrow and City wishes to lend a total amount of $50,000
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for the purposes and under the terms which are fully described in the entire
Agreement hereunder. Additionally, on behalf of the County of San Bernardino,
City wishes to grant $10,000 for the purposes and under the terms which are
fully described in the entire Agreement hereunder.
NOW, THEREFORE, based on the foregoing Recitals, and on the covenants,
conditions, and promises contained herein, City, and Neighborhood Housing
Services, hereby acknowledge and agree as follows:
2. LOAN BY CITY / GRANT BY CITY ON BEHALF OF COUNTY:
City agrees, subject to the terms and conditions of this Agreement, and
in consideration of the representation, covenants and obligations of NHS
contained in this entire Agreement, to loan to NHS the total sum of $50,000
which has been appropriated from the City's Community Development Block Grant
and shall be used to finance the acquisition of ten (10) vacant infil1 lots
necessary to construct the same number of single family dwelling units for
occupancy by owner built housing program participants, and pay to NHS $10,000
which has been granted from the County of San Bernardino Community Development
Block Grant in order to assist NHS in defraying certain administrative
expenses associated with the operation of the owner built housing program.
3. SECURITY AND SOURCE OF PAYMENT; REPAYMENT
Payment of principal shall become due and payable at the time of the
owner built housing program first phase construction is completed. The
principal sum of $50,000 shall be secured by this loan agreement by and
between City and NHS. No interest shall apply on this loan.
At the completion of the first phase of construction of the owner built
housing program, subject to a written request approved by City, the principal
amount may be utilized for development of a second phase owner built housing
program. Upon completion of the second phase of construction of the
Owner-Built Program, the loan in its entirety shall be repaid to the City from
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the proceeds of the sale from the second phase housing.
In the event that contractor discontinues operation of the owner built
housing program, disbands, goes out of business, or ceases operations for any
reason, whatsoever, any cash balance in the owner built housing program land
acquisition funds, and all assets of the owner built housing program land
acquisition fund, including any notes receivable, any trust deeds, and any and
all other remaining assets of the owner built housing program, shall be
assigned to City, and delivered promptly to City.
The principal sum of $10,000 as provided by the San Bernardino County
Office of Community Development is granted to NHS for the sole purpose of
administering the NHS owner built housing program as a one time grant.
Disbursement of loan funds are as follows:
a) Ten-thousand ($10,000) dollars to be deposited into NHS owner
built housing program operating account.
b) Fifty-thousand ($50,000) to be deposited into an interest
bearing escrow account, to be drawn down per each land
purchase.
c) Reasonable real estate broker fees shall may be paid from the
proceeds of the City loan, provided such fees shall not exceed
five percent (5%) of the purchase of individual parcels.
4. REPORTING REQUIREMENTS:
a) NHS will provide quarterly written reports to San Bernardino
Redevelopment Agency. These reports shall contain the following:
24 1. Number of acquired lots.
25 2. Amount of purchase price.
26 3. Status of owner built housing program construction
27 4. Number of owner built housing program participants by age,
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race, sex,
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1 household.
2 5. Number of owner built housing program employees by race, sex,
3 national origin and income.
4 6. Contractors and sub-contractors names, State Contractors
5 license number and Federal identification number.
6 City requires that NHS shall not discriminate against any participant or
7 employee as to employment or participation in the owner built housing program
8 because of race, color, religion, sex, national origin, age or handicap. NHS
9 shall take affirmative action to ensure that applicants are employed, and that
10 employees are treated during employment and owner built participation, without
11 regard to their race, color, religion, sex, national origin, age or handicap.
12 Such action shall include, but not be limited to, the following: employment
13 upgrading, demotion or transfer, recruitment or recruitment advertising,
14 layoff or termination, rates of payor other forms of compensation and
15 selection for training including apprenticeships. NHS agrees to post in
16 conspicuous places, available to employees and applicants for employment,
17 notices setting forth the provisions of this non-discrimination clause and
18 availability of owner built housing program for housing.
19 NHS shall, in all solicitations or advertisements for employees placed
20 by or on behalf of NHS, state that all qualified applicants will receive
21 consideration for employment and owner built housing program participation
22 without regard to race, color, religion, sex, national origin, age or handicap.
23 5. CONDITIONS TO LENDER MAKING LOAN:
24 The obligation of the City to make any future advances under this
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Agreement, Exhibits, and all other documents initiated, given, or executed in
connection herewith, are dUly and validly executed by and on behalf of, and
constitute the valid and enforceable obligations of, the NHS thereunder
pursuant to the respective terms of each. Further, the execution and delivery
of this Agreement, Exhibits, and all other documents executed or given by NHS
hereunder, and the respective obligors thereunder, will not breach or violate
any articles or agreements of limited or general partnerships, any articles of
incorporation, any by-law restrictions, or any law or governmental regulation.
6. OBLIGATIONS OF BORROWER HEREUNDER UNCONDITIONAL:
The obligations of the NHS to make payments as required in shall be
absolute and unconditional, and, until such time as the principal of all funds
forwarded to NHS shall have been fully paid, the NHS shall not terminate or
suspend this Agreement or the payment of any obligations provided hereunder,
or under any other documents executed hereunder, or in connection herewith for
any cause.
7. DEFAULT AND REMEDIES:
a) Default. The failure by NHS to payor perform its obligations
hereunder or the falsity of any representation, or breach of any warranty or
covenant made by NHS hereunder, or under the terms of any other document
executed in connection herewith, shall constitute a default hereunder; in
addition, and not by way of limitation, the following shall constitute a
default hereunder:
1. A failure by NHS to pay the loan amount or to meet the
conditions of this loan Agreement required by City hereunder, as and when due,
where such failure shall continue for a period of ten (10) days after written
notice thereof from City to NHS;
2. A failure by NHS to observe and perform any other material
provision of this entire Agreement where such failure shall continue for a
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I period of thirty (30) days after written notice thereof from City to NHS;
2 I provided, however, that if the nature of NHS's default is such that more than
3 thirty (30) days are reasonably required for its cure, then NHS shall not be
4 deemed to be in default if NHS commences such cure within said thirty (30)
5 days and thereafter diligently prosecutes such cure to completion;
6 3. The making by NHS of any general assignment for the benefit of
7 creditors; the filing by or against NHS of a petition to have NHS adjudged
8 bankrupt or of a petition for re-organization or arrangement under any law
9 relating to bankruptcy (unless, in the case of a petition filed against NHS,
10 the same is dismissed within sixty (60) days); the appointment of a trustee
II or receiver to take possession of substantially all of NHS' s assets where
12 possession is not restored to NHS within thirty (30) days; or the attachment,
13 execution or other judicial seizure of substantially all of NHS's assets where
14 such seizure is not discharged within thirty (30) days.
15 b. Remedies. Upon the occurrence of a default by NHS, City may take
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anyone or more of the following remedial steps:
1) Declare the entire principal balance then unpaid under the
terms of this Agreement, immediately due and payable.
2) Take whatever action at law or in equity (other than an action
for specific performance of non-monetary obligations) as may appear necessary
or desirable, in the sole discretion of the City, to collect the amounts then
due, and thereafter to become due, to enforce performance and observance of
any obligation, agreement or covenant of the NHS under this Agreement, or
under any other document executed in connection herewith.
25 3) Institute any action or proceeding at law or inequity for the
26 collection of the sums so due and unpaid, and to prosecute any such action or
27 proceeding to judgment or final decree, and to enforce any such judgment or
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final decree and collect, in a manner provided by law, the monies adjudged
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ordecreed to be payable.
c) No Remedy Exclusive. No remedy herein conferred upon or reserved
to the City is intended to be exclusive of any other available remedy or
remedies, but each and every such remedy shall be cumulative, and shall be in
addition to every other remedy given under this Agreement or now existing at
law or in equity, or by statute, and may be exercised in such number, at such
times and in such order as City may determine its discretion. Any and all
notices of default must be remedied within thirty (30) days of receipt of said
notice.
8. AGREEMENT TO PAY ATTORNEYS' FEES AND EXPENSES:
In the event the City or NHS utilizes the services of any attorney or
attorneys in attempts to collect any sums due under this Agreement or any
other document executed or given in connection herewith or hereunder, or if
the City or NHS becomes a party, plaintiff or defendant or otherwise appears
in any legal proceeding relating to this Agreement or any of the documents
executed hereunder, or in connection herewith, the prevailing party shall be
entitled to all court costs and attorney fees and expenses as the Court may
fix.
9. COMPLIANCE WITH LAWS AND CONTRACTS:
This Agreement shall be subject to, and all parties to this Agreement
shall comply with all applicable local, state and federal laws and regulations
not specifically identified in this Agreement, and any applicable contracts
with federal agencies.
Further, this Agreement shall be governed by and construed in accordance
with the laws of the State of California, and all applicable federal statutes
and regulations as amended.
10. NOTICES:
All notices, certificates, or other communications hereunder shall be
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delivered either personally or by registered or certified mail, postage
prepaid, return receipt requested, and addressed to the parties at the
addresses set forth in this Agreement. If given by mail, such notice shall be
effective as of the date so received. All such notices shall be delivered or
mailed to City or NHS at the addresses designated on Page 1 of this Agreement.
11. EXECUTION OF DOCUMENTS:
The parties hereto shall, exercising reasonable diligence, execute any
and all documents and do all things as may be necessary or advisable under the
circumstances to give practical effect to this Agreement, and to evidence,
perfect, and protect all rights and interests granted to the parties hereunder.
12. HOLD HARMLESS:
NHS shall hold City, its elective and appointive boards, officers,
agents and employees, harmless from any liability for damage or claims for
damage for personal injury, including death, as well as from claims for
property damage which may arise from NHS' s or any of its subcontractors'
operations under this Agreement, whether such operations be by NHS or by any
subcontractor, or subcontractors, or by anyone or more persons directly or
indirectly employed by, or acting as agent for NHS or any subcontractor or
subcontractors. NHS shall defend City and its elective and appointive boards,
officers, agents and employees from any suits or actions at law or in equity
for damages caused, or alleged to have been caused, by reason of the aforesaid
operations.
13. RELATIONSHIP:
No member, officer, or employee of City, or designees or agents, no
member of the governing body of City, and no other public official who
exercises any functions or responsibilities with respect to the program during
his tenure or for one year thereafter, shall have any interest, direct or
indirect, in any contract or subcontract, or the proceeds thereof, for work to
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be performed in connection with the activities assisted under this Agreement.
14. CONFLICT OF INTEREST: NO INDIVIDUAL LIABILITY.
No member, official, or employee of City shall have any financial
interest, direct, or indirect, in this Agreement, nor shall any such member,
official, or employee participate in any decision relating to this Agreement
which affects his pecuniary interest, or the interests of any corporation,
partnership, or association, in which he is, directly or indirectly,
interested. No member, official, or employee of the City or NHS shall be
personally liable in the event of any default or breach of this Agreement by
the City or NHS.
15. BINDING EFFECT:
This Loan Agreement shall inure to the benefit of, and shall be binding
upon, the City and the NHS and their respective successors and assigns,
subject, however, to the limitation contained in this Agreement.
16. AMENDMENTS, CHANGES AND MODIFICATIONS:
Except as otherwise provided in this Agreement, this Agreement may not
be effectively amended, changed, modified, altered, or terminated without the
prior written consent of the City and NHS. No term or provision of this
Agreement may be changed, waived, discharged, or terminated orally, but only
be an instrument in writing signed by the party against which the enforcement
of the change, waiver, discharge, or termination is sought.
22 17. EXECUTION OF COUNTERPARTS:
23 This Agreement may be simultaneously executed in several counterparts,
24 each of which shall be an original and all of which shall constitute but one
25 and the same instrument.
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18. BORROWER'S AUTHORITY:
Each individual executing this Agreement on behalf of NHS represents and
warrants that he or she is duly authorized to execute and deliver this
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1 reement on behalf of NHS, and that his or her signature is binding upon NHS
2 in accordance with its terms.
3 IN WITNESS WHEREOF, on this date, December 19, 1984, the parties have
4 executed this Loan Agreement the day and year first above written.
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7 BY: ~/7/H/4/$~
, City Clerk
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Approved as to legal form:
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14 ByA ~~~
ITY ATTORNEY
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SAN BERNARDINO NEIGHBORHOOD
HOUSING SERVICES, INCO ORATED
BY:~~
Antolin Gomez, Exec. Di ector