The URL can be used to link to this page

Home My WebLink AboutRS04-Redevelopment Agency : - l .- ~.. . REI._.VELOPMENT AGENCY .R.....1UEST FOR l.JMMISSION/COUNCIL Al~.ION I '. ,it: Redevelopment Agency Subject: NEIGHBORHOOD HOUSING SERVICES, INC. SHORT-TERM LOAN AGREEMENT (INFILL HOUSING) . From: GLENDA SAUL Date: NOVEMBER 11, 19B5 Synopsis of Previous Commission/Council action: In July 1984. the Mayor and Common Council approved a $50.000 loan to Neighborhood Housing Services. Inc.. for the purpose of acquiring ten (10) parcels zoned residential for NHS's veterans Owner-Built Infi]l Housing Program. Recommended motion: (MAYOR AND COMMON COUNCIL) Redevelopment Committee Recommendation. RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING EXECUTION OF SHORT-TERM LOAN AGREEMENT WITH NEIGHBORHOOD HOUSING SERVICES, INC.. FOR INFILL HOUSING PROGRAM. iN'~b'l Contact person: I Kenneth J. Henderson Phone: 383-5081 1 Supporting data attached: Staff Report Ward: FUNDING REQUIREMENTS: Amount: $ 20.000 Project: N/A No adverse Impact on City: Date: November 18. 1985 r 'ncil Notes: Agenda Item No. f:5 If r Cli:"'~ OF SAN BERNARDI:O - . I I I ~ -- ~- ~~ REQUr:)T FOR COUNCIL AC.,"':ON STAFF REPORT On October 23, 1985, staff received a letter from Antolin Gomez, Executive , Director, Neighborhood Housing Services, Inc., requesting consideration from the Mayor and Common Council in the following two (2) areas: (1) Exemption from all engineering, planning building permit and mechanical fees imposed by the City relative I to NHS's Owner-Built infill housing program effective November 1, 1985; (2) A Short term loan in the amount of $20,000 to assist and aid NHS in a temporary cash flow problem in connection with the implementation of their infill program. On October 25, 1985, the above matters were considered by the Redevelopment Committee. After 'discussion and review of NHS' s request (see attached , letter), the Committee took acton to recommend the following to the Mayor and Common Council: That Ordinance No. MC-481 entitled Enterprise Zone Inventives be approved and adopted by the Mayor and Common Council as an urgency ordinance with November 1, 1985 as the effective date. This recommendation was approved by the Mayor and Common Council on November 1, '1985. That a loanlin the amount of $20,000 be made to NHS to facilitate the timely implementation of the Owner-Built infill housing program. I The loan to NHS would be secured by pre-development funds provided by Life Savings and Loan I and administrative funds provided by Neighborhood Reinvestment Corporation. Neighborhood Reinvestment Corporation requires proof of acquisit'ion of all building and related permits prior to reimbursement. The I turn-around time once a payemnt request has been submitted by NHS is 6-7 weeks. The loan would accrue interest at seven percent (7%) per annum, and would be repaid in six (6) equal installments (principal and investment> over a forty (40) week period. Adoption of the resolution by the Mayor and Common Council would authorize and direct the Mayor to execute a loan agreement with NHS at a funding level not to exceed $20,000 I for the purpose of immediate implementation of NHS' s Owner-Built infill housing program. , 467L 75-0264 -- --- /-IIH . ... SAN BERNARDINO NEIGHBORHOOD HOUSING SERVICES , 1296 North MI. Vernon Avenue . P.O. Box 7027 . San Bernardino, CA 92411 . (714)884-6891 , . October 23, 1985 Mr. Ken Henderson City of San Bernardino Redevelopment Agency 300 North "D" Street San Bernardino, CA 92418 Dear Mr. Henderson: As you are we111aware SBNHS is sponsoring an Owner Built program in San Bernardino's westside. The Owner Built area is located west of the 1215 freeway, east of Mt. Vernon, north of 5th Street and south of 9th Street. IWe believe this area is within the designated Enter- prise Zone established by the City. The purpose of this correspondence is to request emergency approval of associated development fee waivers for our development from your Redevelopment Committee with City Council final approval. It is critical that we attempt to have such fees as sewer capacity fees school fees, etc. to be waived considering that such fees were not included in the!deve10pment budget of our Owner Built program when first established. If such fees are required to be paid the cost. of construction land final sales price to Veteran Owner Builders will be increased in order to cover these unanticipated expenditures. Currently, our ten (10) Owner Built homes will sell for $46.000.00. Our Owner Built predevelopment budget included $2,000.00 for Building permits per unit. More over, because of unanticipated delays (2months) in acquiring permits and attempts to have the unanticipated fees waived we have run into a tempory cash flow problem. We have been unable to draw down our committed Administrative funds from Neighborhood Reinvest- ment ($25,000.00) to cover Administrative costs. Neighborhood Rein- vestment requires that we show proof of aquisition of building permits before they release committed funds. , Therefore. we are requesting two (2) actions by the City; 1) Waiver of associated development fees designated for developments/businesses within the Enterprise Zone. and 2) requesting for a $20,000.00 short term loan from CDBG to cover interim SBNHS operating costs. If the associated development fees are waived, the repayment of short term loan will be secured and repaid by the slaes of the Owner Built homes. Ca1-Vet is providing the mortgage (take-out) financiLb for the Owner Built project ($46,000.00 in 10 months-project completion) . , " " " ~ -'" -- - -- ... Page 2 - . The following are conditions of short term loan: o I Short term 10 months $20,000.00 loan at interest rate determined by City regulations. o Repayment due and payable in full including accured interest at said terms. o Loan secured with permanent financing committed from Cal-Vet or construction funds committed by Life Savings Bank based on six draw schedule. , The Owner Built, construction is scheduled to begin immediately after Building permits are secured. We look foreward to a favorable response and thank you in advance for anything you can do to facilitate and ensure the successful outcome of this innovative Owner Built program. Sincerely:, ~~? Antolin Gomez , Executive Director SBNHS '"'-- . -- "'~ 1 RESOLUTION NO. RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND 2 DIRECTING EXECUTION OF SHORT-TERM LOAN AGREEMENT WITH 3 NEIGHBORHOOD HOUSING SERVICES, INC., FOR INFILL HOUSING PROGRAM. BE ITI RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY 4 OF SAN BERNARDINO AS FOLLOWS: 5 SECTION 1. The Mayor of the City of San Bernardino is , 6 hereby authorized and directed to execute, for and on behalf of 7 the City of San Bernardino, that certain agreement between the 8 City of San Bernardino and Neighborhood Housing Services, Inc., 9 for a short-term loan for Infill Housing Program, a copy of which 10 is annexed hereto as Exhibit "1" and incorporated herein by 11 reference. Upon execution thereof, the Community Development 12 Division staff is authorized to lend the sum of $20,000 to 13 Neighborhood Housing Services, Inc., from Community Development 14 Block Grant funds, upon the terms and conditions specified in 15 said agreement. I I HEREBY CERTIFY that the foregoing resolution was duly 16 17 adopted by the Mayor and Common Council of the City of San 18 Bernardino at a meeting thereof, held on the 19 20 wit: 21 22 23 24 25 26 27 28 day of , 1985, by the following vote, to AYES:j Council Members NAYS: ABSENT: , CITY CLERK -- - ] 2 of The foregoing I , 3 4 5 Approved as to form: 6 - resolution is hereby approved this 1985. 7 ..--',r tJ</. / 1 Ii /7 .. ./.- ,/....'.; ...-:...-j....- ./'';,- '''/ -...' -. -'......".,. /-"~/r-'- 7/"~ I 8 City Attorney 9 10 ]] 12 13 14 15 16 17 18 19 20 2] 22 23 24 25 26 27 28 day Mayor of the City of San Bernardino --- - 1 2 I I AGREEMENT, I SHORT-TERM LOAN AGREEMENT THIS entered into effective the day 3 of , 1985, by and between THE CITY OF SAN 4 BERNARDINo', a public body corporate, hereinafter .City," and 5 NEIGHBORHOOD HOUSING SERVICES, INC., a California non-profit 6 corporation, hereinafter "NHS," sets forth the agreement of the 7 parties as specified herein. 8 9 The parties hereto agree: 1. City shall forthwith advance to NHS the sum of $20,000, 10 to assist NHS until such time as NHS is able to make various 11 draws upon funds due from other entities. 12 2. NHS agrees to repay to City the sum of $20,000, with 13 interest at 7% per annum, to be repaid in six equal installments, 14 to 15 amortize the loan over a 40-week period. I 3. NHS shall execute and deliver to City, at such time as 16 , City is prepared to issue a check or warrant to NHS, a Promi~sory , 17 Note in form approved by City Attorney to assure repayment of the 18 loan. NHS shall also provide to City a Security Agreement and 19 assignment of interest pledging funds from Life Savings Bank, 20 also known' as Life Savings and Loan Association, and pledging and 21 assigning to 22 ' payable from City NHS's interest in administrative funds due and Neighborhood Reinvestment Corporation. Such 23 , Security Agreeillent and assignment of interest shall be in form I . approved by Clty Attorney. , 4. Upon presentation of the duly executed Promissory Note 26 I and Security Agreement, in form approved by City Attorney, The 27 Community Development Division staff shall deliver its checll or 24 25 28 -- .- - .... warrant for $20,000, as specified hereinabove, using Community ] I 2 Development Block Grand funds. I 3 IN WI~NESS WHEREOF, the parties hereto have executed this 4 agreement ~ffective the day and year set forth above. , 5 CITY OF SAN BERNARDINO NEIGHBORHOOD HOOSING SERVICE, INCORPORATED 6 7 By By President 8 Mayor 9 Attest: ]0 ]] ]2 City Clerk ]3 , Approved as to form: By Secretary ]4 15 A2t//)~;"_N 16 ~t:'onley 17 18 19 20 2] 22 23 24 25 26 27 28 2