HomeMy WebLinkAboutR31-Economic Development Agency
.
ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
FROM:
Maggie Pacheco, Director
Housing & Community Development
SUBJECT:
REQUEST APPROVAL TO PROVIDE
ADDITIONAL FUNDS TO
NEIGHBORHOOD HOUSING
SERVICES OF THE INLAND EMPIRE,
INC. (NHS) TO CONTINUE THE
OWNER-OCCUPIED MOBILE HOME
HANDYWORKERPROGRAM
DATE:
May 10, 1999
ORIGINAL
SvnoDsis of Previous Commission/Couucil/Committee Action(s):
As a result of Agency downsizing, on September 28, 1998, the Redevelopment Committee recommended approval to the
Council to outsource the Single-Family (Phase II) Rehabilitation Loan Program to Neighborhood Housing Services
(NHS).
Subsequently, on October 26, 1998, in order to continue the outsourcing efforts, and given the number of housing
programs that the Agency staff was directly administering and delivering to the community, the Committee and
Commission also approved a $100,000 allocation from CDBG funds to NHS for a Handyworker Grant Program.
On November 16, 1998, the Community Development Commission ratified the Redevelopment Committee's
recommendation.
On May 6, 1999, the Redevelopment Committee recommended that this item be forwarded to the Community
__!?~_"-~_~()p'~n~Ec~~~mmi~!~~~~pprov~,-_________________________________________________________________________________________
Recommended Motion(s):
(Mavor and Common Council)
MOTION A: That the Mayor and Common Council approve the amendment to the City's Consolidated Annual
Action Plan (1997) and authorize the expenditure of HOME funds in the amount of $200,000 for the
Neighborhood Housing Services, Inc., Mobile Home Park Handyworker Program.
MOTION B: RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO
APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE A CONTRACT BY AND BETWEEN THE
CITY OF SAN BERNARDINO AND NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE,
INC., (NHS) FOR PURPOSES OF CARRYING OUT THE MOBILE HOME PARK HANDYWORKER
PROGRAM
Contact Person(s):
Gary Van Osdel/ M. Pacheco
Phone:
5081
Project Area(s) Ward(s):
Supporting Data Attached: I:&l Staff Report I:&l Resolution(s) I:&l Agreement(s)/Contract(s) I:&llncome Limits
FUNDING REQUIREMENTS Amount: $ 200,000
1997 HOME Funds (IOIS#8046008-213)
Source:
SIGNATURE:
- CommisSionlC;;iiiicif"N'otes:------------------------------------------------------------------------------------------
MP:lag:99-05-17 NHS Handyworker
COMMISSION MEETING AGENDA
Meeting Date: 05/17/1999
Agenda Item Number: ;1(3/
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
Neil!:hborhood Housinl!: Services - Handvworker Grant Prol!:ram
Current Issue:
The Agency has provided repair grant assistance to mobile home applicants since 1992.
Subsequent to the Commission's action of October 1998, NHS has focused its $100,000 CDBG
allocation on assisting the Agency efforts to improve mobile home units via a Mobile Home Park
Handyworker Program.
There are approximately 42 mobile home parks in the City. Under State Law, Title 25 Mobile
Home Park Act, the City is required to inspect all mobile home units in these 42 parks to insure
that all units meet the standards contained in the Act within a five (5) year period. Since 1991,
the City has inspected all but four parks. According to the Inspection Services Manager, the
inspection window expires this year.
The City Inspection Services Division is responsible for overseeing and carrying out the City's
obligations under the Mobile Home Park Act. The Mobile Home Handyworker Program has
been a valuable resource to the City's enforcement efforts. As the units are inspected and
violations are found, the owners are required to correct the problems within a 30 day-period.
Most of the occupants are elderly on fixed income and do not have the resources to fix the
problems; therefore, it is essential that Inspection Services have someone that they can refer
applicants to.
As such, NHS has been working closely with Inspection Services. Inspection Services also
performs the inspections on completed units to insure that NHS is correcting the violations in
accordance with the Act.
Similar to the WSCDC Handyworker Program, the Mobile Home Handyworker Program is in
great demand and is an essential component of the City's obligation to enforce the standards
under the Act. NHS started-up the Program in December 1998, and has received over 70
applications and referrals from Inspection Services. They have completed repairs to about 30
cited units and have done an excellent job in coordinating this Program.
Clearly, there is a need to continue this Program; however, recognizing that the need far exceeds
the funding resources available to the City, Staff is proposing that an additional allocation of
$200,000 be granted to NHS, from federal HOME funds, but with more restrictive progranunatic
MP:lag:99-05-17 NHS Handyworker
COMMISSION MEETING AGENDA
Meeting Date: 05/17/1999
Agenda Item Nnmber: .J!31
Economic Development Agency Staff Report
NHS
May 6,1999
Page Nwnber -2-
parameters. Staff proposes, and NHS is in concurrence, that the Program be limited to
households whose incomes do not exceed 60% of median income with emphasis on assisting the
elderly and larger families. Again, because this proposal includes allocating HOME federal
funds, the area of priority will be to remedy the Title 25 violations first and foremost. In
addition, the Program will continue to offer a $5,000 per unit grant limitation and the applicant
must own the unit for not less than one year. NHS will offer assistance to only those applicants
referred by the Inspection Services Division, on a first come, first serve basis. All other
provisions under the CDBO Contract will be incorporated into the new HOME Contract.
Continuation of this Program will also assist the City in meeting the nwnber one priority
depicted in the City's adopted Consolidated Plan which calls for the preservation and
rehabilitation of the City's affordable single-family housing stock.
Fiscal ImDact
The $200,000 is proposed to be allocated from 1997 unexpended federal HOME (CHDO) funds
(10 No. 8046008, 213). These funds are exclusively for the preservation and development of
low and moderate income housing units, including mobile homes. As of the date of this report
the uncommitted and unexpended balance in this account is $230,250.
Recommendations
That the Mayor and Common Council adopt form Motion A and B approving a one-year
appropriation and contract with NHS in the amount of $200,000 to continue the Mobile Home
Park Handyworker Program.
Maggie Pa 0, Director
Housing & Community Development
Attachments: Resolution
Contract
Income Limit Chart
MP:lag:99-05-17 NHS Handyworker
COMMISSION MEETING AGENDA
Meeting Date: 05/17/1999
Agenda Item Nnmber: ~ I
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1
RESOLUTION NO:
2
3
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF
THE CITY OF SAN BERNARDINO APPROVING AND
AUTHORIZING THE MAYOR TO EXECUTE A CONTRACT BY
AND BETWEEN THE CITY OF SAN BERNARDINO AND
NEIGHBORHOOD HOUSING SERVICES OF THE INLAND
EMPIRE, INC., (NHS) FOR PURPOSES OF CARRYING OUT THE
MOBILE HOME PARK HANDYWORKER PROGRAM
4
5
6
7
8
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
9
10
11
SECTION \.
The Mayor is hereby authorized and directed to execute on behalf
12 of said City an Agreement with the Neighborhood Housing Services of the Inland Empire, Inc.,
13 (NHS) to implement the Owner-Occupied Mobile Home Park Handyworker Program, a copy of
14 which is attached hereto, marked Exhibit "A" and incorporated herein by reference as though
15 fully set forth at length.
16
SECTION 2.
The authorization to execute the above referenced Agreement is
17 rescinded if the parties to the Agreement fail to execute it within sixty (60) days of the passage 0
18 this resolution.
19 IIII
20 IIII
21 IIII
22 IIII
23 IIII
Entered into Record at S j 'L ~>.
CouncillCmyDevCms Mtg: ~
24 IIII
hI,
rp Ayellda Item
tf3J
25 IIII
26 IIII
I
i ,/'\ -;'. i'" i Ir
....j. 'r'" ,,"" ^, "
)A/./._~
27 11//
City Clerk/CDe Slcy
City of San Bernardino
28 IIII
IIII
11 D' /!JI
q11/99
Page 1 of 2
I RESOLUTION OF TIlE MAYOR AND COMMON COUNcn.. OF TIlE CITY
OF SAN BERNARDINO APPROVING AND AUTHORIZING TIlE MAYOR
2 TO EXECUTE A CONTRACT BY AND BETWEEN TIlE CITY OF SAN
BERNARDINO AND NEIGHBORHOOD HOUSING SERVICES OF TIlE
3 INLAND EMPIRE, INC., (NHS) FOR PURPOSES OF CARRYING OUT TIlE
MOBILE HOME PARK HANDYWORKER PROGRAM
4
5
6
7
I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and
Common Council of the City of San Bernardino at a
meeting thereof, held
on
day of
, 1999 by the following vote, to wit:
COUNCIL MEMBERS: AYES
8 ESTRADA
LIEN -
9 MCGINNIS -
SCHNETZ -
10 DEVLIN
ANDERSON
11 MILLER
12
NAYS
ABSTAIN ABSENT
13
City Clerk
14 The foregoing resolution is hereby approved this
1997 ,1999..
day of
15
16
17
Judith Valles, Mayor
City of San Bernardino
18 Approved as to form and Legal Content:
19
20 7-.P.
21
22
23
24
25
26
27
28
Page 2 of2
2
HOME AGREEMENT
COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO)
(1997 HOME Funds)
(Neighborhood Housing Services of the Inland Empire, Inc.)
(NHS)
(Owner-Occupied Mobile Home Handyworker Program)
3
4
5
THIS AGREEMENT is made and entered into this
day of
6
7
1999, by and between the City San Bernardino, a municipal corporation (hereinafter referred to
as "City"), located in the City of San Bernardino and in San Bernardino County, and the
8
9
Neighborhood Housing Services of the Inland Empire, Inc. (NHS), 1390 North "D" Street, San
10
Bernardino, California 92405, a community housing development organization (CHDO)
organized pursuant to Title 24 CFR Subpart "G", Section 92.300, et seq., acting herein duly
II
12
authorized by its Board of Directors.
RECITALS
13
14
WHEREAS, the City has received formula HOME Investment Partnership allocation for
15
Fiscal Year 1997-1998 from the federal Department of Housing and Urban Development (HUD)
16
to carry out eligible activities in accordance with federal program requirements at 24 CFR 92
17
(the "Program"), and has designated the City to administer such Program; and
18
WHEREAS, not less than fifteen percent (15%) of the above-mentioned grant amounts
19
shall be set aside and made available to designated CHDOs, in accordance with HUD guidelines
20
as per 24 CFR 92.208(a); and
21
WHEREAS,NHS is desirous of participating in activities eligible under HOME, and
22
further agrees that the beneficiaries of its activities under the program and this Agreement, are or
23
will be individuals or families who meet the income eligibility guidelines at Title 24 CFR part
92.217; and
24
25
WHEREAS, the City deems the activities to be provided by NHS as consistent with and
supportive of the HOME Program and is consistent with the City of San Bernardino
-1-
1 Comprehensive Housing Affordability Strategy (CHAS), and the City's 1995-99 Consolidated
2 Plan, and that NHS requires the financial assistance of the City to implement its housing
3 activities; and
4 WHEREAS, the City, acting in the capacity of a grantor, will monitor NHS to ensure
5 compliance with all HOME Program requirements, and that NHS, in its capacity as a CHDO,
6 will comply with all program requirements under 24 CFR 92.
7 NOW, THEREFORE, THE PARTIES MUTUALLY AGREE AS FOLLOWS:
8 I. CERTIFYING THE NONPROFIT AS A CHDO:
9 NHS has satisfied the definition of a CHDO as stated in 24 CFR Subpart A, Section 92.2
10 of the HOME Final Rule. To qualify for receipt and use of federal HOME funds as a CHDO
11 NHS has met the following requirements:
12 A. Legal Status. The nonprofit organization is organized under state or local laws, as
13 evidenced by a charter or articles of incorporation. No part of its net earnings inure to the benefl
14 of any member, founder, contributor, or individual, as evidenced by the same. The nonprofit
15 organization must have a tax exemption ruling from the Internal Revenue Service (IRS) under
16 Section 501 (c) of the Internal Revenue Code of 1986, as evidenced by a 501 (c) certificate from
17 the IRS. Also, the nonprofit organization has among its purposes the provision of decent
18 housing that is affordable to low and moderate income people, as evidenced by a statement in the
19 organization's charter, articles of incorporation, by-laws or resolutions.
20 B. Caoacitv. The nonprofit organization conforms to the financial accountability
21 standards of24 CFR 84.21, "Standards for Financial Management Systems", as evidenced by a
22 notarized statement by the organization CEO or president, a CPA or a HUD-approved audit
23 summary. NHS has a demonstrated capacity for carrying out activities assisted with HOME
24 funds and affordable housing programs through the stated experience of key staff members or
25 contract(s) with consultants who have experience with related projects to train key staff. Also
-2-
NHS has shown a history of serving the community where housing to be assisted with HOME
2 funds has been used by the attached statement that documents at least one year of experience in
3 serving the community as depicted in Exhibit "A" herein.
4 C. Orllanizational Structure. The governing board ofNHS consists of at least 33 percent
5 (33%) residents oflow-income neighborhoods, other low-income community residents, or
6 elected representatives of low-income neighborhood organizations as evidenced by charter, by-
7 laws or articles of incorporation. NHS provides a formal process for low-income, program
8 beneficiaries to advise the organization in all of its decisions regarding the design, development,
9 and management of all affordable housing projects, through its by-laws, resolutions or a written
10 statement of operating procedures approved by the governing body. While NHS may be
II chartered by the state or a local government, the public body may not appoint more than one-
12 third of the membership of the organization's governing board and no more than one-third of the
13 governing board members are public officials as evidenced by charter, by-laws, or articles of
14 incorporation. Also, ifNHS is sponsored or created by a for-profit entity, the for-profit entity
15 may not appoint more than one-third of the membership ofNHS's governing body, and the boar
16 members appointed by the for-profit entity may not, in turn, appoint the remaining two-thirds of
17 the board members, as evidenced by the same.
18 D. Relationshio with For-Profit Entities. NHS is not controlled, nor receives directions
19 from individuals or entities seeking profit from the organization, as evidenced by the
20 organization's by-laws or a memorandum of understanding. NHS may be sponsored or created
21 by a for-profit entity, however:
22 1. The for-profit entity's primary purpose does not include the development or
23 management of housing, as evidenced in its by-laws; and
24 2. NHS is free to contract for goods and services fromvendor(s) of its own choosing, as
25 evidenced in its by-laws, charter or articles of incorporation.
-3-
II. SCOPE OF SERVICES AND COMPENSATION
2 A. Amount of Grant: Pursuant to the conditions being met in Section L Above, City
3 agrees to grant two hundred thousand dollars ($200,000) (the "Grant") of the 1997-1998 HOME
4 Investment Partnership funds for the implementation of the Mobile Home Handyworker Pro
5 (the "Program") that NHS implements as a Community Housing Development Organization
6 (CHDO) pursuant to the HOME Investment Partnership Act.
7 B. Use of Grant Funds (ScoDe of Work): The Grant Funds will be used by NHS to
8 implement the Mobile Home, Owner-Occupied, Handyworker Program. NHS will provide
9 financial assistance to owner occupants to repair health and safety items, specifically as it relates,
10 to repairs required under State Law, Title 25 Mobile Home Park Act, and local codes. Grant
11 Funds may also be used by NHS to pay the costs of salaries, wages and other employee
12 compensation as provided for in Exhibit "B" herein. The requirements and limitations on use of
13 these funds by CHDO's are set forth in CFR 92.300 (e) and (t).
14 I. Proiected Budeet:
15 The Grant Funds shall be used by NHS to carry out the Program and as projected in the
16 budget attached hereto as Exhibit "B" and by this reference is incorporated herein.
17 2. Schedule for comDletion of tasks:
18 Upon execution of this Agreement, NHS agrees to provide the services outlined in the
19 body of this Agreement from May 17, 1999 through May 17,2000. The Agency Executive
20 Director is hereby authorized, with the concurrence of the other parties to this Agreement, to
21 extend for a period not to exceed ninety (90) days, in order to complete the Program and other
22 obligations required to be performed herein.
23 C. Other Prol!:ram Reauirements
24 1. NHS must carry out all activities in compliance with all federal laws and regulations
25 described in Subpart H of24 CFR 92 and outlined hereinafter, except that NHS does not assume
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1 the Agency'S/City's responsibility for environmental review in Section 92.352 or the
2 intergovernmental review process in Section 92.357. These federal laws and regulations must be
3 complied with as follows:
4 a. EQual Oooortunitv. No person shall be excluded from participation in, be denied the
5 benefits of or be subjected to discrimination under any program or activity funded in
6 whole or in part with HOME funds. In addition, HOME funds must be made available
7 in accordance with all laws and regulations listed in Section 92.350(a).
8 b. Fair Housinl!. In accordance with the certification made with its housing strategy,
9 each participating jurisdiction must affirmatively further fair housing. Actions
10 described in Section 570.904(c) of Title II of the Cranston-Gonzales National
11 Affordable Housing Act will satisfy this requirement.
12 c. Affirmative Marketinl!. NHS must adopt affirmative marketing procedures and
13 requirements for HOME-assisted housing projects offive (5) units or more, if
14 applicable. These must include:
15 (I) Methods for informing the public;
16 (2) Requirements and practices that NHS must adhere to in order to carry out the
17 City/Agency affirmative marketing procedures and requirements;
18 (3) Procedures used by NHS to inform and solicit applications from persons in the
19 housing market area who are not likely to apply without special outreach;
20 (4) A description of how NHS will assess the success of affirmative marketing
21 actions and what corrective actions will be taken where affirmative marketing
22 requirements are not met.
l23 d. Disolacement. Relocation and ACQuisition. Consistent with the other goals and
24 objectives of this Subpart H of 24 CFR 92, NHS must ensure that it has taken all
25 reasonable steps to minimize the displacement of persons (families and individuals) as
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a result of any project assisted with HOME funds. Moreover, NHS agrees that it will
2 not undertake any project activity that will cause displacement of any homeowner in
3 accordance with Section 92.353, without the approval of the City.
4 e. Conflict of Interest. NHS will hereby comply with all requirements set forth
5 regarding conflict of interest provisions as they apply in Section 92.356.
6 f. Debarment and SusDension As required in Section 92.357, NHS will comply with all
7 debarment and suspension certifications.
8 g. Flood Insurance. Under the Flood Disaster Protection Act of 1973, HOME funds
9 may not be used with respect to the acquisition or rehabilitation of a project located in
10 an area identified by the Federal Emergency Management Agency (FEMA) as having
11 special flood hazards, unless:
12 (I) The community in which the area is situated is participating in the National
13 Flood Insurance Program, or less than a year has passed since FEMA
14 notification regarding such hazards; and
15 (2) Flood insurance is obtained as a condition of approval of the commitment. If
16 the unit is located in an area identified by FEMA as having special flood
17 hazards, upon notification by the Agency or FEMA, NHS is responsible for
18 assuring that flood insurance under the National Flood Insurance Program is
19 obtained and maintained on each unit assisted with Grant Funds.
20 2 Hold Harmless. NHS agrees to indemnify, defend (upon request by City and
21 Agency), and save harmless the City and Agency, its officers, agents, and employees
22 from any and all liability, expense including defense costs and attorney's fees, and
23 claims and losses whatsoever accruing or resulting to NHS or any and all contractors,
24 subcontractors, materialmen, laborers and any other person, firm, or corporation
25 furnishing or supplying work, services or supplies in connection with the performanc
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of this Agreement, and from any and all claims and losses accruing or resulting to an
person, firm, or corporation who may be injured or damaged by NHS in the
performance of this Agreement. Without limiting NHS' s indemnification of City,
NHS 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 City and evidence of such
programs satisfactory to City shall be delivered to the Executive Director of the
Agency or his designee within ten (10) days of the effective date of this Agreement.
The costs, salary and expenses of the City Attorney and members of his office in
enforcing this Agreement on behalf of the City or Agency shall be considered as
"attorney's fees" for the purposes of this paragraph.
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/Agency as
an additional insured. Such insurance shall require that the City/Agency be notified
at least ten (10) days in advance of any change or cancellation of said insurance.
D. Reauest for Disbursement of Grant Funds
I. NHS may request Grant funds weekly or monthly, on a reimbursement basis, for
eligible costs noted in Exhibit "B", up to maximum of $200,000. The amount of each request
will be limited to the amount substantiated in the invoices submitted for costs incurred by NHS
to operate and implement the Program.
E. Records and ReDorts
I. The City will require that NHS maintain the following records and reports in order to
assist the City in meeting its record keeping and reporting requirements:
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(a) Records, including individual project and construction records and a running log
2 demonstrating compliance with the applicable provisions of Section 92.508(2) of the HOME
3 Investment Partnership Program; and
4 (b) Continuing compliance with the HOME Program shall be certified and reported to
5 the City on a quarterly basis to comply with HOME reporting requirements.
6 (c) Any other legal reports and/or records requested by the City to document the
7 provisions of all affordable housing projects or programs.
8 2. NHS shall retain and provide access to all records for the period of three (3) years
9 from the date of this Agreement in accordance with the requirements of Section 92.508(6)(c) and
10 (d).
II III. GENERAL PROVISIONS:
12 A. Enforcement of the All:reement
13 I. The City shall have the right, by prior written notice to NHS, to enforce by deed
14 restriction, the affordability requirements in Section 92.254, or any other such violation, as is
15 brought to the attention of the City regarding the property(ies) being developed with the use of
16 HOME funds pursuant to this Agreement, if any. In the event of a breach of any condition or
17 provision hereof, the City shall have the right, by prior written notice to NHS, to suspend or
18 terminate this Agreement ifNHS materially fails to comply with any of its terms.
19 2. The City, at its discretion, may terminate this Agreement, in whole or in part, by
20 giving NHS written notice in accordance with 24 CFR 85.44, which provides in part that
21 suspension or termination may occur ifNHS materially fails to comply with any term of this
22 Agreement.
23 B. Monitorinll:
24 I. The Executive Director of the Agency (the "Agency"), or his designee, shall be
25 responsible for managing the day-to-day operations of the HOME program; for monitoring the
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performance of all entities receiving HOME funds from the City to ensure compliance with the
2 requirements of Subpart K, 24 CFR 92, and for taking appropriate action when performance
3 problems arise.
4 2. Not less than quarterly, the Agency will review the activities ofNHS, to assess
5 compliance with the requirement of Subpart K, 24 CFR 92, as set forth in this Agreement.
6 3. If any real property is developed or housing is financed in whole or in part with
7 HOME funds as described in the Program herein, each review for compliance will include on-
8 site inspection to determine compliance with housing codes and the requirements of Subpart K,
9 24 CFR 92. The results of each review will be included in the City/Agency's performance report
10 required by part 91 of Title II of the Cranston-Gonzales National Affordable Housing Act of
11 1992 and will be made available to the public.
12 C. Notices. Any notice requirement set forth herein shall be deemed satisfied three (3)
13 days after mailing of the notice first-class United States certified mail, postage prepaid,
14 addressed to the appropriate party as follows:
15
CHDO:
Neighborhood Housing Services of the
Inland Empire, Inc.
C/O Executive Director
1390 North "D" Street
San Bernardino, CA 92405
City of San Bernardino
Redevelopment Agency
C/O Executive Director
201 North "E" Street, Suite 301
San Bernardino, CA 92401
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Agency:
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Such addresses may be changed by notice to the other party given in the same manner as
22
provided above.
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D. Attornev's Fees. In addition to any other remedies provided hereunder or available
24
pursuant to law, if either party brings an action or proceeding to enforce, protect or establish any
25
right or remedy hereunder, the prevailing party shall be entitled to recover from the other party
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its costs of suit and reasonable attorney's fees. The costs, salary and expenses of the City
2 Attorney and members of his office in enforcing the Agreement on behalf of the City or Agency
3 shall be considered as "attorney's fees" for the purposes of this paragraph.
4 E. No Third Parties Benefited. This Agreement is made and entered into for the sole
5 protection and benefit of the City, its successors and assigns, and NHS, its permitted successors
6 and assigns, and no other person or persons shall have any right of action hereon.
7 F. Citv to File Notices. NHS irrevocably appoints, designates, and authorizes the City as
8 its agent (said agency being coupled with an interest) to file at its option for record any notices 0
9 completion, cessation of labor, or any other notice that the City deems necessary or desirable to
10 protect its interest hereunder.
11 G. Actions. The City shall have the right to commence, appear in, or defend any action
12 or proceeding purporting to affect the rights, duties, or liabilities of the parties hereunder, or the
13 disbursement of any proceeds of the City allocation of HOME funds.
14 H. Successors and Assigns. The terms hereof shall be binding upon and inure to the
15 benefit of the successors and assigns of the parties hereto; provided, however, that no assignment
16 ofNHS's rights hereunder shall be made, voluntarily or by operation oflaw, without the prior
17 written consent of the City, and that any such assignment without said consent shall be void.
18 1. Construction of Words. Except where the context otherwise requires, words imparting
19 the singular number shall include the plural number and vice versa, words imparting persons
20 shall include firms, associations, partnerships and corporations, and words of either gender shall
21 include the other gender.
22 J. Partial Invaliditv. If any provision of this Agreement shall be declared invalid, illegal,
23 or unenforceable, the validity, legality, and enforceability of the remaining provisions hereof
24 shall not in any way be affected or impaired.
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K. Goveminl!: Law. This Agreement and any other instruments given pursuant hereto
2 shall be construed in accordance with and be govemed by the laws of the State of Califomia and
3 the pertinent HOME regulations.
4 L. Amendment. This Agreement may not be changed orally, but only by agreement in
5 writing signed by NHS and the City.
6 M. Aoorovals. Where an approval or submission is required under this Agreement, such
7 approval or submission shall be valid for purposes of this Agreement only if made in writing.
8 Where this Agreement requires an approval or consent of the City, such approval may be given
9 on behalf of the City by the Executive Director of the Redevelopment Agency or hislher
10 designee who may in his sole discretion submit such approval or consent for consideration by the
II Mayor and Common Council, if necessary.
12 N. Caotions and Headinl!s. Captions and headings in this Agreement are for
13 convenience of reference only, and are not to be considered in construing the Agreement.
14 O. Entire Al!reement. This Agreement shall be executed in three (3) duplicate originals,
IS each of which is deemed to be an original. This Agreement includes 12 pages and Exhibit A and
16 B which constitute the entire understanding and agreement of the parties.
17 This Agreement integrates all of the terms and conditions mentioned herein or incidental
18 hereto, and supersedes all negotiations or previous agreements between the parties.
19 P. Authoritv. The individuals executing this Agreement and the instruments referenced
20 herein on behalf ofNHS each represent and warrant that they have the legal power, right and
21 actual authority to bind NHS to the terms and conditions hereof and thereof.
22 fill
23 fill
24 fill
25 fill
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1 IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed
2 the day and year first above written.
3
4 CITY OF SAN BERNARDINO
5
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7 By:
Judith Valles, Mayor
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16 Approved as to Form and
Legal Content:
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18 James F. Penman, City Attorney
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CHDO
NEIGHBORHOOD HOUSING SERVICES
OF THE INLAND EMPIRE, INC.,
A California Nonprofit Corporation
By: ........L .)./. III
Jack Hill
Printed Name
.
Ed~OnCrief
Printed Name
Executive Director
Title
By~J Ij]~~c/B{
Leonard Davenport
Printed Name
Board Vice Presidnent
Tltle
23 P:\CDBG OqlI\Magic\Miscl/lOME AGREEMENT.NHS Mobilchomc.doc
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EXHIBIT "A"
Neighborhood Housing Services
of the
Inland Empire, Inco
JACK I.. HIL
Pruictan~
CJlSinnan of the ,
EDWARD F. MOt
ExfICUlive Dire<
NHSIE is a non-profit 501 (c)(3) housing and neighborhood development
corporation established in 1982. The corporation's mission is to revitalize
neighborhoods through housing rehabilitation, down payment assistance,
hamebuyer education, and neighborhood fix-up/clean-up programs.
NHSIE is a NeighborWarks@ Organization chartered by the congressionally
established Neighborhood Reinvestment Corporation.
The organization's prime target area is comprised af a number of
communities in the Inland Empire of Southem Califomia, which includes
communities in both San Bemardino and Riverside Counties.
NHSIE developed the HomeStart Down Payment Assistance Program,
designed to help qualified low- and moderate-income homebuyers. HomeStart is
funded through contributions from private enterprise. HomeStart is available
through a variety of mortgage companies and builders in selected communities
throughout the United States.
The corporation also administers its Gimme-Five Down Payment
Assistance Grant Program funded through the Federal Home Loan Bank and
through other public sources. The program provides a grant of up to five thousand
dollars to low- and very-low income homebuyers. Qualified buyers may receive
additional support in the form of a silent second loan.
NHSIE administers down payment assistance programs for the cities of
Redlands, Rancho Cucamonga, and Highland. These programs are funded
primarily through the jurisdictions' Re-development agencies. Generally, they
target families with incomes between 100% and 115% of the area median income.
Other NHSIE activities include the acquisition, rehabilitation, and resale of
FHA-foreclosed single-family homes, the acquisition and rehabilitation of multi-
family units in blighted, low-income neighborhoods, and coordination of residents
and volunteers around neighborhood improvement projects.
NHSIE has established the HomeOwnership Center a "school for
homeownership." The purpose of the center is to support the corporation's
commitment to Full-Cycle Lending. The two thQu~and square foot facility is located
adjacent to NHSIE's corporate offices in San Bemardino. Among the its features are
classrooms for group meetings, a counselIng room for individual credit-couAseling
sessions, and a resource library with training materials, periodicals, and videos on
issues of credit clean-up and debt reduction, home ownership and home maintenance.
The center serves as a centrallocatioh for pre- and post-purchase homebuyer
education and down payment assistance.
. HomeOwnership Center participants attend at least eight hours of .
~omebuyer education classes prior to loan closing. The center's staff and voU:mteer
Instructors from the lender community conduct formal homebuyer education
classes. Staff also coordinate with a variety of first mortgage lenders in processing
down payment assistance grant and loan documents, and guide families through
the closing process.
(909) 884-6891 .Fax (909) 884-6893 01390 North "DO SI. .San Bernardino, CA 92405
~ ~ Page 1
u___LL_:.J..lL...L__
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EXHIBtT "A"
Neighborhood Housing Services
of the
Inland Empire, Inc.
JACl( l.. Mil
Pr_.,,~
Chaitman of th_ S
EDWARD F. liON
ExllCUtIwJ O;rec
Programs and Products
NHSIE provides down payment assistance to qualified low- and moderate-
income homebuyers through its HomeStart Down Payment Assistance Program,
which is funded through contributions from the builder and lender industries. The
organization also administers down payment assistance programs for the tities
of Redlands, Highland, and Rancho Cucamonga.
In 1998, NHSIE provided 256 HomeStart grants and silent second loans
totaling $1,260,570 and leveraging $30,267,058 in first mortgage loans. NHSIE
closed 41 city-funded grants totaling $315,099 and leveraging $4,225,600 in first
mortgage loans.
During the same period, the organization's HomeOwnership Training
Center provided 24 classes and educated or counseled 356 participants.
In addition, NHSIE has recently received approval for a grant in the
amount of $500,000 from the Federal Home Loan Bank Affordable Housing
Program. The funds will be used exclusively to provide down payment grants to
low- and very low-income home buyers residing in the Inland Empire. First-time
homebuyers will receive up to five-thousand dollars toward the purchase of their
home.
NHSIE is an approved contractor under the City of San Bernardino's
Acquisition, Rehabilitation, and Resale (ARR) Program. As an ARR contractor,
the organization acquires an average of two FHA-foreclosed properties per
month, fully rehabilitates these, and sells them to qualified first-time homebuyers.
NH51E also operates the city's Mobile Home Repair and Owner-Occupied
Housing Rehabilitation Programs.
The corporation has also acquired, rehabilitated, and now owns and
manages (through a property management company) two hundred fifteen units of
multi-family housing located in the City of San Bemardino.
. .
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(909) 884-6891 'Fax (909) 884-6893 '1390 North '0' 51. 'San Bernardino, CA 92405
.~g~_ Page 2
EXlllBIT "B"
I. ScoDe of Work (DescriDtion of the Handvworker Mobile Home Grant Prol!l'llm ):
A. NHS will use the Grant funds to administer, implement and manage a Handyworker
Program which provides grants of up to $5,000 per unit, for owner-occupied single
family mobile home units located within the City of San Bernardino ( the "Program"):
The Program consists of as follows:
1. NHS will advertise the Program if necessary, accept and process grant
applications on a first come, first serve basis and proceed to determine the
eligibility of the homeowner for the Program. Specifically, only homeowners
who have owned and live in their unit for not less than I year, and meet the
income guidelines shall be eligible to participate in the Program. Furthermore,
only those homeowners who have been cited by the City's Inspection Services
Division, under Title 25 of Mobile Home Park Act (the "Act"), or any other
applicable legislation or local codes, shall be eligible to participate under the
Handyworker Program. This requirement will insure that only those owners
requiring work under the Act, or other laws, are assisted prior to all others,
provided that the homeowner meets all other Program criteria.
2. NHS shall insure that all owners participating in the Program provide proof of
ownership and occupancy evidencing that the owner has owned and resided in the
unit for not less than one year from the date of Grant application.
3. NHS shall insure all owners participating in the Program meet the income
guidelines; specifically, any homeowner receiving assistance under the Program
must have an annual income that does not exceed 60% of median income for San
Bernardino County. The City shall provide the income guidelines to NHS
annually. Furthermore, NHS shall give priority to senior citizens.
4. NHS will work with qualified homeowners to determine the scope of work of
each contract in relation to the maximum grant per unit; assist each owner to
establish priorities in relation to health and safety standards;
5. NHS will complete costs estimates on the scope of work for each unit and insure
that the homeowner approves the scope of work prior to undertaking the
improvements, and to obtain bids from sub-contractors, if necessary; and to
complete and process the grant documents;
6. NHS will complete and or monitor the completion of the approved scope of work
in concert with the City's Inspection Services Division.
.
7. NHS shall insure, prior to commencing any work on any unit, that an inspection
report from the City's Inspection Services Division bas been conducted so that
NHS insures that the necessary Act violations are addressed and remedied prior to
undertaking any other type of improvements on each unit.
8. Once the work bas been identified, NHS shaH proceed with all due diligence to
insure that the work is performed in a good workmanship manner. NHS can
either undertake the improvements directly, or NHS may sub-contract the work to
be performed on the respective unit. All work performed under the Program shall
be inspected by the City's Inspection Services Inspector to insure compliance
with the Act, or any other local, state or federal law.
9. NHS shall process all payments to vendors and subcontractors.
10. NHS shall maintain a record of each grant transaction as determined appropriate
by the City and submit timely written reports as provided under the Agreement.
This Scope of Work is not intended to be aH in-conclusive, rather, it is intended to serve
as a general guide and set forth basic parameters to assist NHS in the implementation,
administration and management of the Program.
II. Schedule of Comoensation
A. For the administration, implementation and management of the Program, NHS shall be
entitled to the following compensation:
I. A processing fee of one hundred dollars ($100) per grant application.
2. If NHS performs the scope of work on a unit, NHS shall be entitled to
compensation for the labor associated with the approved scope of work, in the
amount of fifty dollars ($50) per billing hour. A formula for determining billing
hours shall be agreed upon the parties within thirty days after the approval date of
the Agreement by the Executive Director of the Agency, or his designee, and
NHS, Executive Director.
3. If all or a portion of the homeowner's work plan/scope of work is to be completed
by subcontractor, other than NHS, then NHS may charge a fifteen percent (15%)
fee of any sub-contract amount to supervise and monitor the work thereunder.
4. In no event, shall the amount expended under this Agreement, exceed the total
amount of the Grant amount to NHS of$200,000.
P:ICDBG DeptlMaggielMisclscope of work-NHS.doc