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HomeMy WebLinkAboutR31-Economic Development Agency i CITY OF SAN BERNARDINO ORIGINAL ECONOMIC DEVELOPMENT AGENCY FROM: Emil A.Marzullo SUBJECT: Public Hearing - Amendment to the 2009-2010 Interim Executive Director City of San Bernardino Annual Action Plan authorizing the use of HOME Funds by Affordable Housing Solutions of San DATE: December 18,2009 Bernardino,a non-profit 501(c)(3)Corporation for the purpose of mitigating residential foreclosures and related blighting influences ----------------- ----------------------------------------------------------------------------------------------------------------------------------------------------- --------------- Synopsis of Previous Commission/Council/Committee Action(s): On October 8,2009, Redevelopment Committee Members Johnson,Baxter and Brinker unanimously voted to recommend that the Mayor and Common Council of the City of San Bernardino("Council")consider this action for approval. On December 7,2009,the Council continued the matter to December 21,2009. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Recommended Motion(s): Open/Close Public Hearing (Mayor and Common Council) Resolution of the Mayor and Common Council of the City of San Bernardino approving: 1)an amendment to the City's 2009-2010 Annual Action Plan and 2) the allocation of $2.5 million in federal HOME Investment Partnership Program Funds to Affordable Housing Solutions of San Bernardino, Inc., a California non-profit corporation ---------------------------------------------------------------------------------—---------------------------------------------------------------------------------------------------------------------------- Contact Person(s): Carey K.Jenkins Phone: (909)663-1044 Project Area(s): All Ward(s): All Supporting Data Attached: 0 Staff Report El Resolution(s)❑Agreement(s)/Contract(s)❑Map(s)❑Letter(s) $2.5 million(HUD Public 1 Hearing authorization I Funding Requirements: Amount: amount) Source: HOME Funds Budget Authority: 2009-2010 Budget Signature: C Fiscal Review: Emil A. Marzullo,Interim Executive Director Russ DeJesus Interim Administrative Services Director — --------------- --- -- - Commission/Council Notes: p o�Qp9 3d3� -------------------------------------------------------------------------------- --------- -------------------------------------------------------------------------------- P:\Agendas\Comm Dev Commission\CDC 2009\12-21-09 AHS-Amendment to 2009-2010 Annual Action Plan SR Final(Con't).doc COMMISSION MEETING AGENDA Meeting Date: 12/21/2009 Agenda Item Number: rQ P-f(a(te vlceu-� �eS ECONOMIC DEVELOPMENT AGENCY STAFF REPORT PUBLIC HEARING -AMENDMENT TO THE 2009-2010 CITY OF SAN BERNARDINO ANNUAL ACTION PLAN AUTHORIZING THE USE OF HOME FUNDS BY AFFORDABLE HOUSING SOLUTIONS OF SAN BERNARDINO,A NON-PROFIT 501(c)(3) CORPORATION FOR THE PURPOSE OF MITIGATING RESIDENTIAL FORECLOSURES AND RELATED BLIGHTING INFLUENCES BACKGROUND: This is a companion item to Item No. R32. On September 21, 2009, the Community Development Commission of the City of San Bernardino (the "Commission") authorized Affordable Housing Solutions of San Bernardino, a California non-profit corporation, ("AHS") to undertake actions for the acquisition and administration of properties to be acquired in furtherance of the Neighborhood Stabilization Program ("NSP") which includes the rehabilitation or demolition, as appropriate, of foreclosed properties within designated target areas or elsewhere in the City, as may be permitted by HERA and in furtherance of the use of the NSP funds by the Agency. The Commission further authorized and directed Agency Staff to fund AHS with HOME Investment Partnership Program Funds in an amount up to Two Million Dollars ($2,000,000). These funds are available to the City for the purpose of acquisition and development of qualified residential properties targeting lower income households. As a result of authorizing these funds for use by AHS, the City must request an amendment to its Annual Action Plan originally submitted to the U.S. Department of Housing and Urban Development ("HUD") at the start of the Program Year. The Annual Action Plan is a subcomponent of the City's overall 2005- 2010 Five-Year Consolidated Plan which serves as a strategic vision for housing and community development activities the City wishes to undertake to improve its housing stock and infrastructure, particularly to benefit low- and moderate-income households. A determination has been made that funds being requested for use by AHS constitutes a substantial change to the Annual Action Plan and as a result require a 30-day public notice period followed by a public hearing to consider the amendment. CURRENT ISSUE: Initially, this item was scheduled to be heard on December 7, 2009, as a Community Development Commission action and was continued to the next meeting for December 21, 2009. It was later determined that because of the federal funding source that is the subject of this action that the Mayor and Common Council should serve as the proper body to hear and approve of this item. The Agency hereby requests that the resolution title that appears on the December 21, 2009, meeting of the Community Development Commission be tabled and that the resolution of the Mayor and Common Council attached herein be adopted and that the public hearing be closed. The requested action was noticed twice in the San Bernardino County Sun newspaper as required by the U.S. Department of Housing and Urban Development and the notice stated that the Mayor and Common Council would consider an action on the allocation of these funds. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- P:\Agendas\Comm Dev Commission\CDC 2009\12-21-09 AHS-Amendment to 2009-2010 Annual Action Plan SR Final(Con't).doc COMMISSION MEETING AGENDA Meeting Date: 12/21/2/009 Agenda Item Number: /�/ i Economic Development Agency Staff Report AHS—Amendment to 2009-2010 Annual Action Plan Page 2 The use of HOME Funds by AHS requires approval from the Mayor and Common Council of the City of San Bernardino ("Council") through an amendment to the City's Annual Action Plan which would allow the use of HOME Funds to purchase previously foreclosed and abandoned properties within the overall framework of NSP activities. In compliance with the City's approved Citizen Participation Plan and Federal HOME regulations under 24 CFR 570.302 and 24 CFR 91.105, the Agency requests authority to amend the Plan. In anticipation of obtaining this authority, the Agency has issued a 30-day public notice in order to fulfill these requirements such that any interested citizen wishing to comment on the proposed amendment to the Annual Action Plan may do so. This is to be followed by Council action to review any public comments and to approve the amendment. In addition and subsequent to September 21, 2009, the Council authorized to fund AHS activities with, among other sources $2,000,000 in HOME Funds as approved on said September 21, 2009, date, and an additional $500,000 in HOME Funds is being sought at this time pursuant to a companion item to this Staff Report identified as R32. This would bring the allocation of HOME Funds to $2,500,000 for AHS affordable housing related activities. This revised amount has been noted in the public hearing notice which ran in the San Bernardino County Sun Newspaper on October 19, 2009, and again on November 2, 2009, copies of the notices are attached (see Attachment "A"). The additional $500,000 would be the subject of an amendment to the AHS Sub-recipient Agreement which is part of the R32 request and will be submitted for consideration under separate cover. ENVIRONMENTAL IMPACT: None. FISCAL IMPACT: There will be no impact to the City's General Fund. HOME Investment Partnership Program Funds are provided by HUD annually through a formula allocation process for the purpose of providing quality housing opportunities to lower-income households. RECOMMENDATION: That the Mayor and Common Council adopt the attached Resolution. Emil A. Marzullo,Interim Executive Director ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- P:\Agendas\Comm Dev Commission\CDC 2009\12-21-09 AHS-Amendment to 2009-2010 Annual Action Plan SR Final(Con't).doc COMMISSION MEETING AGENDA Meeting Date: 12/21/2009 Agenda Item Number: 61 Attachment "A" DAILY JOURNAL CORPORATION LEGAL ADVERTISING CALIFORNIA NEWSPAPER SERVICE BUREAU INVOICE Invoice Number Date P.O. Box 54026 LOS ANGELES CALIFORNIA 90054-0026 B1715154 11/2/2009 PHONE:(213)229-5300 FAX(213)229-5481 FEDERAL TAX ID:95-4133299 Customer Account Number 1124100563 Customer Payment Reference Special Project For payment processing,please forward to: Page 1 of 1 Ordered by: PHRANQUIE COULL CAREY K. JENKINS/L.WYCHE ECONOMIC DEVELOPMENT AGENCY-CITY ECONOMIC DEVELOPMENT AGENCY-CITY 201 NORTH E ST#301 201 NORTH E ST#301 SAN BERNARDINO, CA 92401 USA SAN BERNARDINO, CA 92401 USA DUE UPON RECEIPT Type Order No Description Amount Invoice B1715154 HOME AMENDMENT($2.5 MILLION AHS) GPNSB GOVERNMENT PUBLIC NOTICE 89900 SAN BERNARDINO COUNTY SUN 567.60 10/19,11/02/2009 $2.20*129 AgateLines*2 Inserts 567.60 PLEASE PROCESS FOR PAYMENT IMMEDIATELY. DUE UPON RECEIPT. Total: 567.60 Payment: 0.00 Please make check payable to: Daily Journal Corporation Please Pay: 567.60 Please detach and return this portion with payment.To Invoice Date Invoice Number Customer Number ensure proper credit to your account, please write your 11/2/2009 B1715154 1124100563 number customer qu st ons about your your ccount please have any ase call II I I II II II II III I III I III I I II I II 2132295411. A 0 0 0 0 0 1 4 1 0 5 8 1 Government Advertising-Division 1124 Please Pay 567.60 DAILY JOURNAL CORPORATION PHRANQUIE COULL CALIFORNIA NEWSPAPER SERVICE BUREAU ECONOMIC DEVELOPMENT AGENCY-CITY ATTN: ACCOUNTS RECEIVABLE 201 NORTH E ST#301 PO BOX 54026 LOS ANGELES, CA 90054-0026 SAN BERNARDINO, CA 92401 USA Attachment "A" • NOTICE OF PUBLIC HEARING NOTICE OF PUBLIC HEARING CITY OF SAN BERNARDINO CITY OF SAN BERNARDINO AMENDMENT OF THE 2005-2010 AMENDMENT OF THE 2005-2010 FIVE-YEAR CONSOLIDATED PLAN FIVE-YEAR CONSOLIDATED PLAN AND 2009-2010 ACTION PLAN AND 2009 2010 ACTION PLAN NOTICE IS HEREBY GIVEN that the NOTICE IS HEREBY GIVEN that the Mayor and Common Council of the t 0 and Common Council of the itY of San Bernardino ("Council") City of San Bernardino ("Council") ill consider allocating an amount not Will consider allocating an amount not o exceed$2,500,000 in a combination of "to exceed$2,500,000 in a combination of Federal HOME Investment Partner- '"Federal HOME Investment Partner- hip Program and HOME Community Ship Program and HOME Community Housing Development Organization ,.Housing Development Organization ("CHDO") Program funds (collec- ("CHDO") Program funds (collec- ively,',the "HOME Program Funds"). tively, the "HOME Program Funds"). The Public Hearing will be held at 4: v� 30 p.m.,or soon thereafter on Monday, e December 7, 2009, in the City Council Chambers located at 300 North "D" Street, San Bernardino, California 92418. The 2005-2010 Five-Year Consolidated Plan is a strategic vision for housing and community development activi- ties that the City wishes to undertake to improve its housing stock and infra- The Public Hearing will be held at : structure, particularly la benefit low- 30 p.m.,or soon the on Monday, and moderate-income households. A December 7, 2009, in the City Council determination has been made that the Chambers located at 300 North "D" funds allocated constitute a substantial Street, San Bernardino, California change from the 2009-2010 Action Plan 92418. year. Said funds are proposed to be The 2005-2010 Five-Year Consolidated "'allocated to eligible projects and activ- Plan is a strategic vision for housing 11$ties that are newly created Projects and community development activr ,and activities that will benefit low-and ties that the City wishes to undertake moderate-income households in the to improve its housing stock and infra- City of San Bernardino ("City"). structure, particularly to benefit low An amount not to exceed $2,500,000 of and moderate-income households. A HOME Program Funds is being pro funds allocated constitute a substant al posed be allocated as follows: Projects funded through the proposed change from the 2009-2010 e pr Action P an HOME Program Funds will consist of year. Said funds are Proposed to be the acquisition, rehabilitation and/or allocated to eligible Protects and activ- new construction of residential prop- ities that are newly created pro lecis erties to be acquired by Affordable and activities that will benefit low-and Housing Solutions of San Bernardino moderate-income households in the a non-profit 501(c)(3) car- City of San Bernardino("City") poration. Properties acquired by AHS An amount not to exceed $2,500,000 of will be in furtherance of the City's HOME Program Funds is being Pro- obiectives of addressing its current posed to be allocated as follows: foreclosure and abandoned property Projects funded through the proposed I ,ences caused by this problem. Eligible risis and lessening the blighting influ the acquisition, ehabilitlationnand/or =properties to be acquired will be locat- new construction of residential prop 'Pd throughout the City with special erties to be acquired by Affordable emphasis on the City's Neighborhood Housing Solutions of San Bernardino Stabilization Program ("NSP") Target ("AHS"), a non-profit 501(c)(3) cor- Area. In all cases, those properties poration. Properties acquired by AHS to be acquired, rehabilitated and/or will be in furtherance of the City's newly constructed will be available to objectives of addressing its current -households whose annual income does foreclosure and abandoned property -4ot exceed 80% of the Area Median crisis and lessening the blighting jnflu �4ncome ("AMI")• ences caused by this problem. Eligible Icompliance with the City's approved properties to be acquired will be locat itizen Participation Plan and Fed- ed throughout the City with special .oral HOME regulations under 24 CFR emphasis on the City's Neighborhood ��570.302 and 24 CFR 91.105, this notice Stabilization Program ("NSP")Target °'shall fulfill these requirements. Area. In all cases, those properties r; OTICE IS FURTHER GIVEN that any to be acquired, rehabilitated and/or Jnterested citizen wishing to comment newly constructed will be available to on the proposed amendment to the households whose annual income does 2005-2010 Five-Year Consolidated Plan not exceed 8()% of the Area Median or the 2009-2010 Annual Action Plan Income ("AMI"): may do so by providing oral and/or In compliance with the City's approved written comments no later than 12:00 Citizen Participation Plan and Fed- noon,on Monday, December 7,2009 to: oral HOME regulations under 24 CFR Economic Development Agency 570.302 and 24 CFR 91.105, this notice 201 North"E"Street,Suite 301 shall fulfill these requirements. Son Bernardino,California 92401 interested citizen Phone: (909)663 1044 w shin9 to comment or at the above scheduled public hear- on the proposed amendment to the ing of the Mayor and Common Council 2005-2010 Five-Year Consolidated Plan at said meeting on December 7,2009. or the 2009-2010 Annual Action Plan Notice to Press: Please publish twice may do so by providing oral and/or ' -on October 19, 2009 and again on written comments no later than 12:00 —November 2,2009. noon,on Monday, December 7,2009 to: � fiend Proof of Publication to: Econom- 2Economic'E Stree'Sui 301 Agency .x Development Agency Attention: Carey K. Jenkins, Director San Bernardino,California 92401 t of Housing and Community Develop Phone: (909)6631044 ment or at the above scheduled public hear 201 North"E"Street,Suite 301 ing of the Mayor and Common Council _ San Bernardino,CA 92401 , at said meeting on December 7,2009. 10/19,11/2/09 , Notice to Press: Please publish twice SBS-171$1914# On Oct ber 19, 2009 and again on r Send Proof of Publication to: Econom- ic Development Agency Attention: Carey K. Jenkins, Director of Housing and Community Develop- , ment San North erna dinot CA 92401' 301 10/19,11/2/09 SBS-1__ 715154# d C (op 1 RESOLUTION NO. 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING: 1) AN AMENDMENT TO THE 3 CITY'S 2009-2010 ANNUAL ACTION PLAN AND 2) THE ALLOCATION OF 4 $2.5 MILLION IN FEDERAL HOME INVESTMENT PARTNERSHIP PROGRAM FUNDS TO AFFORDABLE HOUSING SOLUTIONS OF SAN 5 BERNARDINO, INC., A CALIFORNIA NON-PROFIT CORPORATION 6 WHEREAS, the City of San Bernardino (the "City") is an entitlement jurisdiction and 7 annually receives certain federal funds under the HOME Investment Partnership Act (the "HOME 8 Program") from the United States Department of Housing and Urban Development ("HUD") in 9 order to carry-out eligible affordable housing activities within the City in accordance with the 10 HOME Program Regulations set forth in Title 24 Code of Federal Regulations Part 92, et seq. (24 11 CFR Part 92); and 12 WHEREAS, on April 20, 2009, the Mayor and Common Council of the City of San 13 Bernardino ("Council") approved the City's 2009-2010 Annual Action Plan ("Consolidated Plan"); 14 and 15 WHEREAS, in compliance with the City's approved Citizens Participation Plan and 16 CDBG/HOME Regulations under 24 CFR 570.302 and 24 CFR 91.105, on October 19, 2009, and 17 again on November 2, 2009, the required public notice of this amendment to the Consolidated Plan 18 was published in the San Bernardino County Sun newspaper, inviting and requesting citizens to 19 provide written and/or oral comments with regards to this amendment at this Public Hearing, and to 20 date, Agency Staff has not received any oral or written comments regarding this amendment; and 21 WHEREAS, the Council desires to amend the Consolidated Plan and allocate $2.5 million 22 of Federal HOME Investment Partnership Program Funds to Affordable Housing Solutions of San 23 Bernardino, Inc. ("AHS") in the furtherance of identifying and acquiring blighted residential 24 properties in order to develop eligible affordable housing activities. 25 NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED BY 26 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS 27 FOLLOWS: 28 P:\Agendas\Resolutions\Resolutions\2009\12-21-09 AHS Substantial Amendment-2009-2010 Annual Action Plan MCC Reso(Final).doc 01 Section 1. The Council hereby approves the amendment to the Consolidated Plan 2 allocating $2.5 million in Federal HOME Investment Partnership Funds to AHS. At the Public 3 Hearing of the Council, oral and written comments were considered before adoption of this 4 Resolution. 5 Section 2. This Resolution shall take effect upon its adoption and execution in the 6 manner as required by the City Charter. 7 8 9 10 11 12 ® 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 P:\Agendas\Resolutions\Resolutions\2009\12-21-09 AHS Substantial Amendment-2009-2010 Annual Action Plan MCC Reso(Final).doc I RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING: 1) AN AMENDMENT TO THE 2 CITY'S 2009-2010 ANNUAL ACTION PLAN AND 2) THE ALLOCATION OF $2.5 MILLION IN FEDERAL HOME INVESTMENT PARTNERSHIP 3 PROGRAM FUNDS TO AFFORDABLE HOUSING SOLUTIONS OF SAN BERNARDINO, INC., A CALIFORNIA NON-PROFIT CORPORATION 4 5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and 6 Common Council of the City of San Bernardino at a meeting 7 thereof, held on the day of , 2009, by the following vote to wit: 8 Council Members: Ayes Nays Abstain Absent 9 ESTRADA 10 BAXTER 11 BRINKER 12 SHORETT 13 KELLEY 14 JOHNSON 15 MC CAMMACK 16 17 Rachel G. Clark, City Clerk 18 19 The foregoing Resolution is hereby approved this day of , 2009. 20 21 22 Patrick J. Morris,Mayor 23 City of San Bernardino 24 25 Approved as to orm: 26 _ By: 27 J es F. Penman, City Attorney 28 P.\Aoendas\Resolutions\Resotutions\2009\12-21-09 AHS Substantial Amendment-2009-2010 Annual Action Plan MCC Reso(Final).doc