HomeMy WebLinkAboutCDC/2007-13
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RESOLUTION NO. CDC/2007-13
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 ENTER INTO A NEW
3-YEAR HOME AGREEMENT (2007-2010 HOME FUNDS), SUBJECT TO
ANNUAL FUNDING AVAILABILITY, BY AND BETWEEN THE AGENCY
AND NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE,
INC. ("NHSIE")
WHEREAS, the City of San Bernardino ("City") has received formula HOME Investment
9 Partnership allocation for Fiscal Year 2007-2008 and anticipates receiving said funds yearly
10 thereafter, from the U.S. Department of Housing and Urban Development ("HUD") to carry out
11 eligible activities in accordance with federal program requirements at 24 CFR 92 (the "Homebuyer
12 Education Program"), and the Redevelopment Agency of the City of San Bernardino (the
13 "Agency") is designated by the Mayor and Common Council of the City of San Bernardino
14 ("Council") to administer such Homebuyer Education Program on behalf of the City; and
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WHEREAS, in an effort to facilitate these activities, the City, on January 22,2001, entered
16 into a HOME Agreement (2000-2003 HOME Funds), as subsequently amended (the "Agreement"),
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with Neighborhood Housing Services of the Inland Empire, Inc., a California non-profit
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corporation ("NHSIE"), to carry out the Homebuyer Education Program and said Agreement has
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expired; and
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WHEREAS, the Agency, on behalf of the City, together with NHSIE, desire to continue the
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scope of services as provided in the expired Agreement and enter into a new Agreement as set forth
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herein to be in full force and effect from and after the date of this Agreement for an annual amount
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not to exceed $80,000, for a 3-year term during the fiscal years of 2007-2008, 2008-2009 and
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2009-2010, subject to availability of the HOME Funds and performance by NHSIE.
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NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED BY
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THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO,
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AS FOLLOWS:
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1 Section 1. The Community Development Commission of the City of San Bernardino
2 ("Commission'') hereby approves the Agreement as of the date of said Agreement. The
3 Commission authorizes and directs the Executive Director of the Agency to execute the Agreement
4 together with such nonsubstantive modifications as deemed necessary and as approved by the
5 Executive Director of the Agency, with the concurrence of Agency Counsel, between the Agency
6 and NHSIE, in an amount not to exceed $80,000 annually, for a period of 3 fiscal years comprised
7 of 2007-2008, 2008-2009 and 2009-2010, subject to the availability of the HOME Funds for the
8 administration and provision of the Program to eligible participants, in accordance with the
9 provisions of the Agreement, a copy of which is attached hereto as Exhibit "A" and incorporated
10 herein by reference.
11 Section 2.
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This Resolution shall take effect immediately upon its adoption.
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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 ENTER INTO A NEW
3-YEAR HOME AGREEMENT (2007-2010 HOME FUNDS), SUBJECT TO
ANNUAL FUNDING AVAILABILITY, BY AND BETWEEN THE AGENCY
AND NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE,
INC. ("NHSIE")
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community
7 Development Commission of the City of San Bernardino at a ioint regular
meeting
8 thereof, held on the 4th day of June
9 Commission Members: Aves
10 ESTRADA X
11 BAXTER X
12 BRINKER X
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13 DERRY X
14 KELLEY -.lL
15 JOHNSON --.lL-
16 MC CAMMACK
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The foregoing Resolution is hereby approved this
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,2007, by the following vote to wit:
Nays
Abstain
Absent
X
c---yv[ ? ~
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Secretary
i'fJ5-
1 day of
June
,2007.
J" Morris, CIl son
"ty Development Commission
of the City of San Bernardino
Approved as to Form:
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By:
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Agenc ounsel
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CDC/2007-13
2007
HOME AGREEMENT
(2007-2010 HOME Funds)
(Neighborhood Housing Services of the Inland Empire, Inc.)
THIS HOME AGREEMENT ("Agreement") is made and entered into this 4th day of June 2007, by
and between the Redevelopment Agency of the City San Bernardino, a public body, corporate and
politic (hereinafter referred to as "Agency"), located in the City of San Bernardino (the "City") and
Neighborhood Housing Services of the Inland Empire, Inc. ("NHSlE") located at 1390 North "D"
Street, San Bernardino, California 92405. The parties agree as follows:
RECITALS
WHEREAS, the City has received formula HOME Investment Partnership allocation for Fiscal Years
2007 and 2008 and anticipates receiving said funds yearly thereafter, 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 to administer such
Program on behalf of the City; and
WHEREAS, the Agency desires to allocate the sum of Eighty Thousand Dollars ($80,000) annually, of
HOME Funds, for a period of three (3) years to NHSlE for the Homebuyer Education Program
("Program") operating expenses, per 24 CFR 92.208(a); and
WHEREAS, the Agency desires to execute a three (3) year Program Agreement with NHSlE,
renewable annually subject to the City receiving its annual Federal HOME Grant from HUD; and
WHEREAS, NHSIE is desirous of participating in activities eligible under HOME, 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 NHSlE as consistent with and
supportive of the HOME Program and is consistent with the City's 2005-2010 Consolidated Plan and
Housing Element; and
WHEREAS, the Agency will monitor and administer NHSIE to ensure compliance with all HOME
Program requirements, and that NHSIE will comply with all program requirements under 24 CFR 92.
NOW, THEREFORE, THE PARTIES MUTUALLY AGREE AS FOLLOWS:
l. CERTIFYING THE NON-PROFIT:
A. Legal Status. The non-profit 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 non-profit
organization must have a tax exemption ruling from the Internal Revenue Service ("IRS")
under Section SOl(c) of the Internal Revenue Code of 1986, as evidenced by a SOl(c)
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certificate from the IRS. Also, the non-profit 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. Capacitv. The non-profit 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's CEO or president, a CPA or a HUD-approved audit summary.
NHSIE 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, NHSIE has
shown a history of serving the community.
C. Relationship with For-Profit Entities. NHSIE 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. NHSIE 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. NHSIE 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.
II. SCOPE OF SERVICES AND COMPENSATION
A. Amount of Grant: Pursuant to the conditions being met in Section I. above, the Agency
agrees to pay Eighty Thousand Dollars ($80,000) (the "Funds") annually for fiscal year
2007-2008,2008-2009, and 2009-2010, subject to federal HOME funds being available to
the City for the Homebuyer Education Program, for a total compensation of Two Hundred
Forty Thousand Dollars ($240,000).
B. Use of Grant Funds: The Funds will be used to pay the operating expenses of NHSIE,
including, but not limited to, the costs of salaries, wages, and other employee compensation
and benefits; employee education, training; rent; utilities; taxes; insurance; equipment;
materials and supplies and more specifically, to implement and administer the Homebuyer
Education Program depicted in Exhibit "A" herein.
1. Tasks to be performed: NHSIE shall develop, manage and support the Homebuyer
Education Program for low-and moderate-income households through projects that
include, but are not limited to, assistance to eligible homebuyers, marketing and
outreach services pertaining to the expansion, improvement, or preservation of low-and
moderate-income housing (See Exhibit "A").
2. Schedule for Completion of Tasks/Term of Agreement: Upon execution of this
Agreement, NHSIE agrees to provide the services outlined in the body of this
Agreement commencing on July 1, 2007 through June 30, 2010, subject to and
conditioned upon the City receiving its annual allocation of federal HOME funds for the
term of this Agreement. Should the City no longer receive federal HOME Funds,
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particularly during the term of this Agreement, then this Agreement shall terminate and
the parties shall have no further obligation to each other relative to this Agreement.
C. Other Program Reauirements NHSIE must carry out each activity in compliance with all
federal laws and regulations described in Subpart H of 24 CFR 92 and outlined hereinafter,
except that NHSIE 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. Eaual 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. Conflict of Interest. NHSIE will hereby comply with all requirements set forth
regarding conflict of interest provisions as they apply in Section 92.356.
d. Debarment and Suspension. As required in Section 92.357, NHSIE will comply with
all debarment and suspension certifications.
Hold Harmless. NHSIE agrees to indemnify, defend, and save harmless, the City and
Agency, its officers, agents, and employees from any and all claims and losses accruing or
resulting to NHSIE 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
NHSIE in the performance of this Agreement. Without limiting NHSIE' s indemnification
of the Agency, NHSIE 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 Agency and evidence of such
programs satisfactory to Agency shall be delivered to the Executive Director of the Agency
or hislher desiguee within ten (10) days ofthe 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 City/Agency, and shall name the City and the Agency as an
additional insured. Such insurance shall require the Agency be notified at least ten (10)
days in advance of any change or cancellation of said insurance.
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D. Reauest for Disbursement of Funds
1. NHSIE may request the Funds monthly at the rate of $6,666.67, on a reimbursement
basis, for eligible costs, on a prorata basis, up to a maximum of Two Hundred Forty
Thousand Dollars ($240,000) for the three (3) year term. The amount of each request
will be limited to the amount substantiated in the invoices submitted for costs incurred
operating the Homebuyer Education Program.
E. Records and Reoorts.
1. The Agency will require that NHSIE maintain the following records and reports in
order to assist the Agency 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; 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
c. Any other legal reports and/or records requested by the Agency to document the
provisions of all affordable housing projects or programs.
2. NHSIE 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).
III. GENERAL PROVISIONS:
A. Enforcement of the Agreement.
1. The City or the Agency, at its discretion, may terminate this Agreement, in whole or in part,
by giving NHSIE written notice in accordance with 24 CFR 85.44, which provides in part
that suspension or termination may occur if NHSIE 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
on behalf of the City; for monitoring the performance of all entities receiving HOME Funds
from the Agency to ensure compliance with the requirements of Subpart K, 24 CFR 92, and
for taking appropriate action when performance problems arise.
2. Not less than annually, the Agency will review the activities of NHSIE, to assess
compliance with the requirement of Subpart K, 24 CFR 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:
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NHSIE: Neighborhood Housing Services of the Inland Empire, Inc.
C/O Executive Director
13 90 North "D" Street
San Bernardino, CA 92405
AGENCY: Redevelopment Agency of the City of San Bernardino
C/O Executive Director
201 North "E" Street, Suite 301
San Bernardino, CA 92401
Such addresses may be changed by notice to the other party given in the same manner as provided
above.
D. Attornev'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 prevailing 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 City or Agency shall be
considered as "attorney's fees" for the purposes ofthis paragraph.
E. No Third Parties Benefited. This Agreement is made and entered into for the sole protection
and benefit of the City and the Agency, its successors and assigns, and NHSlE, its permitted
successors and assigns, and no other person or persons shall have any right of action hereon.
F. Agencv to File Notices. NHSlE 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 City or the Agency 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 NHSlE's
rights hereunder shall be made, voluntarily or by operation of law, without the prior written
consent of the City or the Agency, and that any such assignment without said consent shall be void.
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.
1. Partial Invaliditv. 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
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pertinent HOME regulations.
L. Amendment. This Agreement may not be changed orally, but only by agreement in writing
signed by NHSIE and the Agency.
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 this Agreement.
O. Entire Agreement. This Agreement shall be executed in triplicate, each of which is deemed to
be an original. This Agreement is comprised of7 pages inclusive of Exhibit "A", which constitutes
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.
P. Authoritv. The individuals executing this Agreement and the instruments referenced herein on
behalf of NHSIE each represent and warrant that they have the legal power, right and actual
authority to bind NHSIE 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.
NHSIE
Neighborhood Housing Services of the Inland Empire,
In,__ ~ """,mtioo
By:
Helen Moore, Executive Director
AGENCY
Redevelopment Agency ofthe City of San Bernardino, a
public body, corpor and politic
By:
heco, Executive Director
Approved as to Form and Legal Content:
By: C-:~
Agency Coun
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1. SCOPE OF WORK
Exhibit" A"
A. To provide homebuyer education classes for not less than 227 households per year as described
and detailed in Section 2 below, and to provide homebuyer education classes to homebuyers
referred by the Economic Development Agency.
B. To conduct off-site marketing and outreach ofNHSIE's and the Agency's Homebuyer's Assistance
Programs. NHSIE will provide outreach and marketing to both public and private sector entities.
A total of not less than 9 businesses and/or organizations per year will be targeted.
C. To provide City/Agency with monthly reports detailing participants and families completing the
Homebuyer Education Program, and the number of families purchasing a home within the City of
San Bernardino.
D. To fund at least 2 loans per month utilizing the Agency's Homebuyer's Assistance Program and
NHSIE's "Gimme 10" Program, or other programs available to qualified first time homebuyers to
buy a home in the City of San Bernardino.
2. HOMEBUYEREDUCATION
A. Real Estate, Title and Escrow
o Explaining Real Estate Purchase Contract
o Contingencies and Counteroffers
o Title Report
o Escrow Disclosures
. Escrow Fees
B. The Mortgage Process
o Types of Mortgage Loans
o Getting Pre-qualified and Receiving a Loan
Conunitment
o The \003 Application
o Good Faith Estimate
C. Home Inspections
o What is a Home Inspection?
o Difference between an Inspection Report
and an Appraisal
o Selecting a Home Inspector
o Addressing Health and Safety Issues
D. Home Maintenance and Preventative Care
o The Value of Home Maintenance
o Basic Tools and Equipment for
Maintenance
o Heat, Venting and Air Conditioning
o Plumbing System, Water Supply, Drains
o Home Cleaning Methods
E. Homeowner's Insurance
o Different Types of Insurance Companies
o Different Types of Insurance Policies
o Coverage Needed Before Closing: Basic Five
o Additional Coverage: Medical, Liability,
Homeowner's Policy, Earthquake and Flood
Insurance, etc.
F. Foreclosure Prevention
o Avoiding Late Payments
o Responding to Collection Letters
o Repayment Plans, Forbearances and Loan
Modifications
o Alternatives to Foreclosure
G. Fair Housing and Predatory Lending
o Predatory Lending
o Fair Housing: Know Your Rights
H. Conununity Empowerment and Civic Participation
o Getting Involved in Your Conununity
o Conununity Involvement Activities
o Neighborhood Watch Programs
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