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Home My WebLink AboutR32-Economic Development Agency CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY FROM: Emil A. Marzullo Interim Executive Director SUBJECT: Neighborhood Housing Services of the Inland Empire ("NHSIE~) Quarterly Update of Program Activities DATE: November 12,2009 ----------------------------------------_.----------------------------------------------------------------------- Svnopsis of Previous Commission/CounciVCommittee Action!s): On November 5, 2009, Redevelopment Committee Members Johnson and Baxter unanimously voted to recommend that the Community Development Commission consider this action for approval. ------------------------------------------------.------------------------------------------------------------------------------------ Recommended Motion!s): MOTION: That the Redevelopment Committee recommend to the Community Development Commission to receive and file ihe Quarterly Update ofNHSIE program activities. Contact Person(s): Project Area(s): Supporting Data Attached: Carey K. Jenkins Phone: (909) 663.1044 All N/A Ward(s): o Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 Letter(s) Budget Authority: N/A N/A Funding Requirements: Amount: $ -0- Source: ~ .. } ?--7 .,- Signature: A.s- :' Emil A. Marzullo, Interim Executive Director Fiscal Review. Commission/Council Notes: P:\Ag~llda5\CQmm fn" Commi$sion\CDC 2009\12-07-09 NHSIE Quarterly Update SR-doc COMMISSION MEETING AGENDA Meeting Date: 12/0712009 Agenda Item Number: Fir? for ~-; ECONOMIC DEVELOPMENT AGENCY STAFF REPORT NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE ("NHSIE") QUARTERLY UPDATE OF PROGRAM ACTIVITIES BACKGROUND: Since September of 1999, the Economic Development Agency of the City of San Bernardino ("Agency") has contracted with Neighborhood Housing Services of the Inland Empire ("NHSIE") to perform certain functions associated with the Agency's housing program. These services include implementing the Single-Family Beautification Loan/Grant Program, Mobile Home Grant Program and the Homebuyer Education Program (collectively, "Programs"). On October 20, 2008, the Agency"s Integrated Housing Strategy ("Strategy") was approved by the Community Development Commission of the City of San Bernardino ("Commission"). Included in this Strategy is a key component of single-family homeownership and neighborhood revitalization, designed to enhance residential neighborhoods and promote home ownership. The activities associated with the homeowner beautification grant and rehabilitation loan programs administered by NHSIE are an integral part of this component. On July I, 2009, NHSIE entered into the final year of its current three-year contract with the Agency. In order to create a more efficient, goal oriented and cost effective program, the Agency and NHSIE worked together to modify Program activities. The result of this collaborative effort was four amended agreements to the original contract that were approved by the Community Development Commission of the City of San Bernardino ("Commission") on July 7, 2009. Contained within these amendments are four separate activities to include: the Mobile Home Grant Program; Single-family Beautification Program; Single-family Rehabilitation Loan Program; and the Homebuyer Education Program. For FY 2009-2010, the Agency has allocated to NHSIE activities, a budget of$2.18 million taken from its Low and Moderate Income Housing Funds and HOME Funds for the implementation of the Programs. The current breakdown of funds is as follows: ACTIVITY AMOUNT SOURCE Program Administration - Grant and Loan $320,000 Low-Mod Program Administration - Mobile Home $40,000 HOME Mobile Home Grant Program (af!reement 1) $160,000 HOME Beautification Grant Program (af!reement 2) $1,080,000 Low/Mod Rehabilitation Loan Program (af!reement 3) $500,000 Low/Mod Homebuyer Education Program (af!reement 4) $80,000 HOME TOTAL $2,180,000 P:\Agendas\Comm In." Commission\COC 2009\12-07-09 NHSIE Quarterly Update SR.doc COMMISSION MEETING AGENDA Meeting Date: 12/0712009 Agenda 1Iem Number: Economic Development Agency Staff Report NHSIE Quarterly Update Report Page 2 Included within the recently approved amendments, are identified specific numerical targets for the numbers of transactions for each program. The table below details the agreed upon number of transactions. Program Beautification Grant Proposed Numerical Ta et 87 10 32 1,200 potential homebuyers; at least 300 attendees to reside or work in the Ci of San Bernardino CURRENT ISSUE: For the quarter ending September 30, 2009, NHSIE completed 17 beautification grants, 0 rehabilitation loans and 3 mobile home grants. This is equal to 20 separate transactions for the quarter. From an expenditure standpoint, NHSIE expended a total of $249,196 for the quarter in direct Program delivery activities. The table below details the number of completed activities, levels of expenditures and average cost per transaction for the quarter and year-to-date by Program type. From a numerical target standpoint, NHSIE has successfully reached 19.5% of the beautification grant, 0% of the rehabilitation loan and 9.3% of the mobile home grant proposed annual numerical target goal. The table below details the number of completed activities, levels of expenditures, average cost per transaction, and the percent to the proposed quota for the recent quarter and the full fiscal year (I st Quarter - July I through September 30) by Program type. Program Completed Expenditure Avg. Transaction % To Quota Activities Cost Seot. 30 Otr. Seot. 30 Otr. Seot. 30 Otr. Year-to-Date Beautification Grant 17 $249,196 $14,659 19.5% Rehabilitation Loan 0 $0 $0 0% Mobile Home Grant 3 $14,975 $4,992 9.3% TOTAL 20 $264,171 $13,209 15.5% Please see Attachment I for the locations of the program activities and approved funding indicated by Ward. The map identifies this information on a quarterly basis through September 30, 2009. For the quarter, 143 persons participated in the Homebuyer Education classes administered by NHSIE at their San Bernardino office located at 1390 North "D" Street. From these participants, 82 are residents of the City; equating to 73% of the total persons who participated in the classes. From this total number of P\Agendas\Comm Dev ComrnissionlCDC 2009\12-07.09l>ilfSIE Quarterly Update SR,doc COMMISSION MEETING AGENDA Meeting Date: 12/0712009 Agenda Item Number: Economic Development Agency Staff Report NHSIE Quarterly Update Report Page 3 participants in the class, six (6) San Bemardino City homeowners were created; equating to 5% of the total persons who participated in the classes. The table below details the number of completed activities and the percent to the proposed quota for the recent quarter. ProIJram Comnleted Activities % To-Quota Participants SB Residents Participants SB Residents Homebuver Education Program 143 82 12% 27% Through September 30'\ NHSIE has trained 143 prospective homeowners, of which, 82 were either San Bernardino residents or presently work in San Bernardino. The 143 participants represent 12% of the 1,200 participants NHSIE has contracted to train this year. Similarly, the 82 participants trained represent 27% of the 300 attendees that must either currently live or work in the City. Administrative Update An important change to the recent Amendments includes reducing the Single-Family Beautification grant amount from $15,000 to $10,000 per property with an additional dollar-for-dollar match from the Homeowner not to exceed an additional $5,000. Based on the Homeowner's match, the total beautification activity could equal a maximum of $20,000 per project ($15,000 in Agency funds plus $5,000 in Homeowner funds). This Program change is based on the theory that an owner who is willing to allocate a portion of their own capital to the overall beautification effort is more likely to maintain their property and be a responsible homeowner going forward as opposed to receiving the full grant of$15,000 as was the previous design of the Program. Since implementing the new amendments, one (I) project was completed during the first quarter using homeowner funds. Although this beautification reflects the previous grant threshold of$15,000, due to an overlap in implementing the new amendments, the homeowner still made a modest contribution of$731, equaling approximately 5% of the total grant amount. In addition to the one (I) completed project indicated above, three (3) other projects recently began that include homeownership contributions totaling $7,014.50 under the new program design. It is estimated that these projects will be completed and reported in the next quarterly update report. Since implementing the new amendments, NHSIE and Agency Staff have participated in three (3) Application Review Committee meetings which consist of reviewing potential grant and loan application packages; and continue to work together towards meeting the specified job numbers and expenditure levels under the current Program Agreement. Within the next six (6) weeks, Agency Staff will arrange to meet with each Council member to discuss specific residential beautification needs within their particular Ward to determine if targeting Program funds in conjunction with other Agency programs and resources is a viable option. P:\AgendasIComm Dcv Commission\CDC 2009\]2-07-09 NHSIE Quarterly Update SR.doc COMMISSION MEETING AGENDA Meeting Date: 12/07/2009 Agenda Item Number: Economic Development Agency Staff Report NHSIE Quarterly Update Report Page 4 ENVIRONMENTAL IMP ACT: This item does not meet the definition ofa "project'" under Section 15378 of the California Environmental Quality Act (CEQA). FISCAL IMPACT: There is no General Fund impact to the City. The contract between the Agency and NHSIE has been funded for FY 2009.2010 Agency Budget, and is derived from the Agency Housing Set.Aside Funds and HOME Funds. RECOMMENDATION: That the Community Development Commission adopt the Motion. . ,~_.c:~_._-.-- '-. ,'- .. i-._ j ~vl iF Emil A. MIU"Z Executive Director P:lAgcndas'.Comm Dcv Commission\CDC 2009\12.Q7..Q9 NHS[E Quanerly Update SR,doc COMMISSION MEETING AGENDA Meeting Date: 12/0712009 Agenda Item Number: