HomeMy WebLinkAbout1986-248
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RESOLUTION NO.
86-248
RESOLUTION OF THE CITY OF SAN BERNARDINO, OF THE COUNTY OF
SAN BERNARDINO, STATE OF CALIFORNIA AUTHORIZING AND DIRECTING THE
EXECUTION OF A STANDARD AGREEMENT AND ANY RELATED DOCUMENTS WITH
THE STATE OF CALIFORNIA FOR THE IMPLEMENTATION AND PARTICIPATION
IN THE RENTAL HOUSING CONSTRUCTION PROGRAM, IN THE FORM OF A
FIFTH AMENDMENT TO CONTRACT 80-RHC-003.
6 WHEREAS, the City of San Bernardino (hereinafter the City)
7 has applied to the Department of Housing and Community
8 Development for funding under the Rental Housing Construction
9 Program; and
10 WHEREAS, pursuant to Sections 50735, et seq., of the
11 California Health and Safety Code, the California Department of
12 Housing and Community Development (hereinafter the State) is
13 authorized to provide funds for rental housing construction; and
14 WHEREAS, the City of San Bernardino (hereinafter the City) a
15 local public agency organizetl under the statutes of the State of
16 California, is eligible to receive said funQ~; and
17 WHEREAS, the Department of Housing and Community Development
18 has awarded the City a conditional funding commitment under the
19 Rental Housing Construction Program.
20 NOW, THEREFORE, BE IT RESOLVED that the City is hereby
21 authorized to enter into an agreement with the State to accept
22 financial assistance in an amount not to exceed Six Hundred
23 Thousand Dollars ($600,000) for purposes of development and
24 construction of new rental housing; and
25 BE IT FURTHER RESOLVED that the Mayor of the City of San
26 Bernardino or an authorized designee is hereby authorized to
27 execute the Standard Agreement and any related documents on
28 behalf of the City in the form of a Fifth Amendment to Contract
1 80-RHC-003, subject to approval of such agreement by the City
2 Attorney.
3 I HEREBY CERTIFY that the foregoing resolution was duly
4 adopted by the Mayor and Common Council of the City of San
5 Bernardino at a
reglllnr
6 held on the
16th day of
.111n~
7 following vote, to wit:
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AYES:
Council Members
meeting thereof,
, 1986, by the
NAYS:
Quiel, Strickler
Estrada, Reillv. Hernandez.
None
ABSENT:
Council Members Marks. Frazier
-~#P{'l';:?;'/// L23? -'1/
-C"^ity Clerk
The foregoing resolution is hereby approved this /7c~
15 day of
:,l'I 986 .
y" /1
l~~
Mayor 0 t e
June
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Approved as to form:
~1fIJ~
City A torney
2
ino
. 'I
:. STANDARD AGREEMENT-
APPROVED BY THE
ATTORNEY GENERAL.
o CONTRACTOR
o STATE AGENCY
o DI!PT. OF GEN. SER.
o CONTROLLER
o
o
o
sTATE OF CALIFORNIA
STD. 2 fti'EV. e/811
THIS AGREEMENT made and entered into this 11th davof Apri 1 . 19 86 .
the State of Califo;nia. by and between State of California, thr~ugh its duly elected or appointed.
qualified and acting
TITLE Of: Of:FICER ACTING FOR STATE
AGENCY
N~MBER
Director Department of Housing and Community Development 80-RHC-003 Am.5
hneaftn Cdlled t~ State, and
City of San Bernardino
hneaftn Cdlled the Contractor.
WITNESSETH: That the Contractor for and in consideration of the covenants. conditions. agreements. and stipulations of the State
hereinafter expressed, does hereby agree to furnish to the State services and materials. as follows:
(Set forth.eroice to be rendned by Contractor, amount to be paid Contractor, timt' for performlJnce or completion, and attach plans and '1'f!cifictltions, if any.)
Standard Agreement Number 80-RHC-003 dated May 6, 1981, and Amendments 1, 2, 3 and 4
between the State and the Contractor are hereby amended to read:
The second paragraph is hereby amended as follows:
Purpose: To assist in the construction and in the ,acquisition of rights of occupancy
for units (hereinafter the "assisted units") and to ensure that at least 30 percent
of the units in the Development shall be made available on a priority basis to or
occupied by households of low and very low income, the contractor (hereinafter the
"Loca1 Finance Entity" or "LFE") has applied to the Department for financial
assistance from the Program. The State on January 22, 1981 approved application No. R-3,
subject to the conditions hereinafter expressed and has determined to provide
financial assistance pursuant to the Program. .
Since the original application was approved, the State on May 10, 1985 approved a
component change from sponsor development to rights of occupancy and on April 11,
1986 reaffirmed the financial commitment of $600,000 in feasibility funds to
-continued on Page 3 -
The provisions on the reverse side hereof constitute a part of this agreement.
IN WITNESS WHEREOF, this agreement has been executed by the parties hereto, upon the date first above written.
STATE OF CAUFORNIA
CONTRACTOR
De artment of Housin and Communit
CONTRACTOR (IF 0'Tl4mt THAN AN ~ In"on WHETHEJt " ~1OOR"T1ON.
~ARTNE1t__. ~.) Ci ty of San Bernardi no
BY (AUTHORIZED SIGNATUREI
AGENCY
BY (AUTHORIZED SIGNATURE)
TITLE
TITLE
Glenda Saul
Executive Director
ADDRESS
CONTINUED ON SHEETS. EACH BEARING NAME OF CONTRACTOR
300 North 0 Street, San Bernardino, CA 92418
AMOUNT ENCUMBERED
PROGRAM/CATEGORY (CODE AND TlTLEI
20 Community Affairs
FUND TITLE
Department of General Services
Use Only
938 RHCF
(OPTIONAL. USE)
2500/24130
ITEM Sec. 50400.5
OBJECT OF EXPENDITURE (CODE AND TITLE)
661731
1 hneby cerlify upon my own "nsonallmowledge that budgeted funds Ilre T .8.A. NO.
available for the "niod Ilnd purpose of the expenditure stilted above.
~
B.A. NO.
SIGNATURE OF ACCOUNTING OFFICER
I hneby entify that all conditions for eumption set forth in State Administrative Manual Section 1209 have
been complied with and this document is eumpt from revieu.' by the Department of Finance.
,
SIGNATURE OF OFFICER SIGNING ON BEHAL.F OF THE AGENCY
DATE
~
City of San Bernardino
80-RHC-003 Amend. 15
Page 3
completion of the second phase of the project. Phase I on Parcell is
currently improved with 36 RHCP assisted units and Phase lIon Parcel 2
will be improved with 78 unassisted units.
Paragraph 9, is hereby amended as follows:
9. The LFE has entered. or will enter into an agreement with Dorjil Company
and Dorjil II. California limited partnerships (hereinafter "the Sponsor
or Sponsors"). to provide to the Sponsors below market interest rate
(hereinafter "BMIR'I) financing. or its equivalent, for the purpose of
assisting the Sponsors to acquire certain property (hereinafter lithe
Property") described in Exhibit A. attached hereto and made part hereof.
and to develop. construct and operate on the Property a 114 multi-unit
rental housing development (hereinafter "the Development") consisting of
36 assisted units and 78 unassisted units to be situated in the County
of San Bernardino. State of California.- - The assisted units subject to
the rights of occupancy shall be owned in fee by the Sponsor. and such
assigns. successors. transferees or purchasers who may from time to time
acquire the development.
Paragraph 10. is hereby amended as follows:
10. Pursuant to the statutes and regulations governing the Program, the LFE,
the department and the Sponsors will enter into a Regulatory Agreement
governing the Development and the financial assistance. including the
feasibility payments as provided herein. The provisions of that agree-
ment and of this State contract. along with other documents approved by
the Department. shall control the use of Program funds and other
financial assistance to be provided to the Development. to ensure the
fiscal integrity of the Development and the continuing availability of
the assisted units to eligible persons for the period described below.
Said Regulatory Agreement shall provide for joint operation. management
and mainteDance of both phases of the project.
Paragraph 12 is hereby amended to add the following:
I'Feasibility Payments" -means payment pursuant to Section 7838(b)
for nonasslsted unit development costs.
Paragraph 14(d) is hereby added as follows:
(d) The Department shall provide Feasibility Payments to the LFE
in the amount and according to the manner. timing and other terms
specified in Exhibit E. attached hereto and made a part hereof.
Paragraph 42 ;s hereby deleted in its entirety.
Exhibits A, B. and C are replaced in their entirety by the Exhibits A, a, and C
attached hereto and by this reference incorporated herein. A new Exhibit E
is attached hereto and by this reference incorporated herein.
All other terms and conditions shall remain as set forth in the original agreement
and amendments thereto.
. .
City of San Bernardino
80-RHC-003 Amend. 15
Page 1 of 1
EXHIBIT B
ASSISTED UNITS
Very Low Income Other Lower Income NON-ASSISTED UNITS
Unit
Description Number 1/ Number 1/ Number 1/
(Bedrooms/Bath) of Units Occupancy- of Units Occupancy- of Units Occupancy-
2 1 6 E1 der1y or 4 E1 derly or 22 ._ Fam; 1y
Handicapped Handicapped
.3 2 15 F ami 1y 7 Fami 1y 56 Fami 1y
4 2 3 F am; 1y 1 Fam; 1y -
11 Occupancy is restricted to the designated group.
RHCP/MB/5-3.4
:
Ci ty of San Bernard 1no
fiaqe 1 of2
80-RHC-003 Amend. 15
EXHIBIT "e"
Development Payments
1. The Department shall provide Development Payments in the total amount of
$1,905,632 and a contingency amount of S190,563 from the Department's
Development Payments Account for the payment of development costs
approved by the Department for the proposed Development. The funds will
be provided in a form of a no interest, deferred payment loan to ~e
evidenced by a note and secured by J deed of trust on the Property.
. .
2. The total amount of the loan shall be set forth in the Deve;opment
Agreement, shall include all approved development costs and shall in no
case exceed the 5um of Development Payments and the contingency amount
stated above. Any' additional development costs not included in the
LFE's epproved application for assistance Which result in total develop-
ment costs in excess of the amount of Development Payme:.ts stated above
shall be identified, documented and justified by the LFE and shall be
subject to the approval of ~he Department.
3. The timinq, method and manner of disbursement of the funds authorized
herein shall be set forth in the Deve10~~ent Agreement. All disburse-
ments of funds shall be deposited by the LFE in an account and in a
financial institution, both approved by the Department. Interest paid
on such account, if any, shall, at the direction of the Department, be
returned to the Department.
4. The Development Agreement shall authorize the Department to disburse an
amount not to exceed fifteen pe~cent (15%) of the total loan amount, in
advance to pay initial or start-up development costs approved by the
Department. The exact amount of such initial disbursement, the allow-
able development cos:s to be paid therefrom and the method of payments
shall be set forth in the Development Agre~~ent. '
5. The balance of the loan amount shall be disbursed in accordance with the
following:
a) The Sponsor shall, on a regular basis, submit invoices for payment
of allowable develo~~ent costs on a form approved by the Depart~ent.
Such invoices shall be accompanied by such supporting evidence and
documentation ,as the Department may require. The Department shall
make payment after its approval of the submitted invoices. The
exact timing and terms of the disbursement procedures shall be set
forth in the Development Agreement.
b) The Department shall 'retain ten percent (lO~) of the total loan
amount for final payment of approved development costs after (1) the
development is certified for occupancy, (2) completion of an
.f "
City of San Ser~ard;no
Page 2 of 2
80-RHC-003 Amend. #5
approved certified cost audit, and (3) the release of all liens,
assessments and encumberances against the Development to the
satisfaction of the Department. The exact timing and terms of such
final payment shall be set forth in the O!velopment Agreement.
6. No funds shall be disbursed prior to loan Closing. The following te~ms
and conditions must be met t~ the satisfaction of the Department prior
to Loan Clos ;ng.
\. i)
a)
Ali reouired contrac:s and ;e~ai acre!ments shal~ be completed and
acproved by the Departmen: before be~artment loan and qrant closing.
Suc~ contracts shall incluoe:
,
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A Regulatory Agre~~ent ~etwee~ the Applicant and ,Sponsor which shall
include a provision for annuai operational subsidies.
2.
3.
A Development Agreement between the Applicant and Sponsor.
Agreements between the Soonsor, qeneral contractor and the a~chitect
must be approved by the De~artment.
"4.
A first deed of trust with the Department as beneficiary in the
amount of the development payments. .
5.
Any additional agreements th~t the Dep!r~~ent deems necessary.
b) The genera1 contractor, a~chitec:, and ~!na~e~nt agent ~st be approved
by the Department.
c)
d)
The management plan must be !pprove~ by the Oep!rt~~nt.
The final architecturai drawinos and specifications must be approved by
the Department. -
e)
f)
The first year operational budget must be approved by the Dep!rt~~nt.
The specific amount of the RHCP development payments at the time of loan
and grant closing will be determined by the Department based on review
of final specifications and costs, but in no event shall it exceed
S2,096,195.
loan !!lo prant closing shall take place on or before "November 15, 1982
9)
h)
The Development Aoreement shaj~ reQuire construction compietion and
occupancy within eighteen (lB) months of loan and grant closing.
ihe Sponsor shall obtain a building per~it before loan and 9ra~t
closing.
j)
Sponsor shall secure below market interest rate finanCino, the amounts,
terms and conditions c~ which sha" be subject to aoprcvtl by the
Depar~ment .
k) All documents relating to the below'market interest rate financing .
includino but not limited to, loan agreements, notes ano dee~s ~f trus~
shall be-;ubje:t to the review and approval by the Deper:ment pr10r to
loan and grant closing.
City of San Bernardino
80-RHC-003 Amendment 5
Page 1 of 1
EXHIBIT E
Feasibility Payments
A. The Department shall provide feasibility payments in the total amount of
$600.000 from the Department's Feasibility Account for the payment of
development costs for the proposed development. subject to the following
conditions:
1. The loan shall be evidenced by a Note and secured by a Deed of Trust
on the Phase II property subordinate only to the primary'CHFA
financing.
2. The interest rate and repayment terms shall be established consistent
with the CHFA permanent financing terms and the projected cash flow
of the development.
3. The Regulatory Agreement shall be amended to cover the 114 unit
leveraged project and provide for long-term rental use. feasibility
loan repayment terms and operating budget review and approval.
4. All permanent financing terms and conditions. and documents must be
approved by the Department.
5. A subordination agreement which places the City's loan in third
position behind the RHCP feasibility loan must be approved by the
Department.
6. Review and approval by the Department of the Dorji1 Estates Phase II
limited partnership must be secured.
7. Review and approval of a joint use agreement which provides for use
of Phase II facilities (i.e.. swimming pool. etc.) by Phase I
assisted tenants must be secured.
8. Loan closing must take place before June 30. 1986.
Attachment