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HomeMy WebLinkAboutR36-Economic Development Agency CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGEN �i I I ` A i FROM: Emil A.Marzullo SUBJECT: Ecclesia's Economic & Community Interim Executive Director Development Collaboration ("EECDC") Affordable Housing Program Memorandum of Understanding ("MOU") for the Acquisition DATE: December 4,2009 and Redevelopment of Residential Properties -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Synopsis of Previous Commission/Council/Committee Action(s): At the Adjourned Regular Redevelopment Committee meeting on December 3, 2009, Redevelopment Committee Members Johnson, Brinker and alternate Shorett unanimously voted to recommend that the Community Development Commission consider this action for approval. ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Recommended Motion(s): (Community Development Commission) Resolution of the Community Development Commission of the City of San Bernardino approving and authorizing the Interim Executive Director of the Redevelopment Agency of the City of San Bernardino ("Agency") to execute the 2009 Memorandum of Understanding by and between the Agency and Ecclesia's Economic&Community Development Collaboration(EECDC Affordable Housing Program) --------------------------------------------------------------------------------------------------------------------------------------------------—-----------—-----------------------------------—--------------- Contact Person(s): Carey K.Jenkins Phone: (909)663-1044 Project Area(s): Citywide Ward(s): All Supporting Data Attached: 0 Staff Report 0 Resolution(s) El Agreement(s)/Contract(s) ❑Map(s) ❑ Letter(s) Funding Requirements: Amount: S -0- Source: N/A Budget Authority: N/A Signature: Fiscal Review: keJesEmil A.Marzullo,Interim xecutive Director Ru u Adminis ative Services Director ------------------------------------------------------------------ -- --- ---------------------------------------------------------------------------------------------------------------------------------------- Commission/Council Notes: e� Win 4 � ---------------------------------------------------------—--------------------------------------------------------------------------------------------------------—--—--------------------- PAAgcndas\Comm Dev Commission\CDC 2009\12-21-09 Ecclesia's-Memorandum Of Understanding SR.doc COMMISSION MEETING AGENDA Meeting Date: 12/21/2009 Agenda Item Number: J-30 ECONOMIC DEVELOPMENT AGENCY STAFF REPORT ECCLESIA'S ECONOMIC & COMMUNITY DEVELOPMENT COLLABORATION ("EECDC")AFFORDABLE HOUSING PROGRAM MEMORANDUM OF UNDERSTANDING ("MOU") FOR THE ACQUISITION AND REDEVELOPMENT OF RESIDENTIAL PROPERTIES BACKGROUND: The Redevelopment Agency of the City of San Bernardino ("Agency") has as one of its core missions the need to create affordable housing opportunities within the City of San Bernardino ("City"). Due to depressed housing market conditions in the City, there are currently many residential properties available at favorable price points, and many of these properties are foreclosed and/or abandoned. Given this confluence of market conditions and mission, the Agency seeks to acquire residential properties in the City for the purpose of redeveloping them as affordable housing for low- and moderate-income households. Such an acquisition and redevelopment program would simultaneously increase the affordable housing stock in the City, help to stabilize housing markets in the City by reducing the supply of unsold residential properties, and help to stabilize communities by revitalizing residential properties that could potentially be a blighting influence. In implementing its acquisition strategy, the Agency will work jointly with non-profit organizations from the local community to acquire residential properties and redevelop them as affordable housing. The Agency specifically seeks to work with non-profit organizations that demonstrate a capacity to develop affordable housing. By offering this opportunity to such organizations, the Agency will help to build the capacity of these non-profits; and thereby, increase the number of firms from the local community that can add to the City's affordable housing stock. In an attempt to meet this objective, the Agency has identified Ecclesia's Economic & Community Development Collaboration ("EECDC") as a local non-profit organization that has demonstrated an interest and capacity for developing affordable housing in the community. EECDC is a non-profit community development corporation with a mission to provide economic, community and housing development opportunities to benefit residents of the City. EECDC is a ministry of the Ecclesia Christian Fellowship Church ("Ecclesia"), governed by a separate Board of Directors from Ecclesia. The Ecclesia, which is located in the northeastern section of the City, has a growing congregation that has been in the City since 1993. The Ecclesia has provided various community development services to residents of the City and members of its congregation which include financial literacy classes, emergency assistance counseling, youth programs and day care services. In addition to community services and economic development activities, the Ecclesia also owns and operates the Taft T. Newman Christian School for children Kindergarten through 8t' grade. The Ecclesia and all of its numerous activities are overseen by Senior Pastor Joshua Beckley. As a recognized non-profit public benefit 501(c)(3) organization, the mission of EECDC is executed through a series of activities that includes the creation of jobs, housing and business development opportunities. The organization is overseen by an eight-member board of directors that includes Mr. Paul Williams as its President. Both Ecclesia and EECDC are located at 1314 Date Street in San Bernardino, ----—----------------—--------—-----—--------------------------—------------------------------------------------------------------------------------------—------------—------------ — P:\Agendas\Comm Dev Commission\CDC 2009\12-21-09 Ecclesia's-Memorandum Of Understanding SR.doc COMMISSION MEETING AGENDA Meeting Date: 12/21/2009 Agenda Item Number: ,Economic Development Agency Staff Report Ecclesia's MOU Page 2 California. The area of influence for EECDC is generally defined as the northeastern area of the City which constitutes a significant amount of residential uses followed by neighborhood supporting commercial and retail activities,primarily along Del Rosa and Highland Avenues. In addition to its designation as a 501(c)(3) organization, EECDC is a Community Housing Development Organization ("CHDO"). In order to attain this status, EECDC had to meet certain U.S. Department of Housing and Urban Development("HUD")program requirements, as such, EECDC is eligible for HOME funding set aside specifically for CHDO's. As a CHDO, EECDC could assist the Agency in investing the Agency's HOME funds identified for distribution to CHDO's. CURRENT ISSUE: The Agency would like to work jointly with EECDC to acquire residential properties within the City at a favorable price for the purpose of redeveloping these properties as affordable housing for low- and moderate-income households (the "EECDC Affordable Housing Program"). Under its arrangement with EECDC, both the Agency and EECDC would be responsible for identifying acquisition properties within the City. Any property identified for acquisition by EECDC would have to be evaluated and recommended for approval by the Agency. Final approval would be provided through a Community Development Commission action before any property could be acquired. Upon approving a property for acquisition and redevelopment, EECDC would become the legal owner of the property. The property's redevelopment would be planned together by the Agency and EECDC, and EECDC would actually be responsible for implementing the redevelopment of the property. Before the acquisition or redevelopment of any property could take place, the Agency would enter into a development agreement with EECDC, or any such other agreement as necessary. Such agreement must specify the terms and conditions under which the Agency would provide acquisition and development financing to EECDC such as EECDC's responsibilities as the owner and developer of the property, the design and use of the property, the covenants and restrictions to be imposed on the property by the Agency, and any other terms and/or conditions that the Agency might deem necessary to protect its financial investment and ensure adherence to its housing policies. The financial assistance provided by the Agency would be derived from various affordable housing funding sources, including the HOME Investment Partnerships Program ("HOME"), the Neighborhood Stabilization Program ("NSP") and the Agency's housing set-aside funds. Due to EECDC's designation as a CHDO organization, the Agency would also be able to deploy HOME housing funds especially identified for these types of organizations. By agreeing to assist the EECDC Affordable Housing Program, the Agency would not be committing to acquire any residential properties or provide any financing for the acquisition and redevelopment of these properties. Rather, the Agency would only be making a commitment to work with EECDC to identify candidates for acquisition and redevelopment. Any actual commitment to acquire a property or provide financing would not be enforceable until the Agency and EECDC enter into a legally binding agreement, such as a Disposition and Development Agreement or some similar type of agreement. Such an agreement would only be executed after the Agency and EECDC have fully evaluated and agreed upon the acquisition and redevelopment potential of a given property and the Agency has received approval from the Community Development Commission of the City of San Bernardino ("Commission") and upon approval of the project by the standard City development project approval process. ----------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------- P\Agendas\Comm Dev Commission\CDC 2009\12-21-09 Ecclesia's-Memorandum Of Understanding SRdoc COMMISSION MEETING AGENDA Meeting Date: 12/21/2009 Agenda Item Number: K-W ,Economic Development Agency Staff Report Ecclesia's MOU Page 3 ENVIRONMENTAL IMPACT: No environmental clearance is required under the California Environmental Quality Act ("CEQA") as a result of entering into this Memorandum of Understanding. No approval of a particular project is being requested through this Memorandum of Understanding. FISCAL IMPACT: There is no City General Fund impact as a result of this Action. This Action does not represent an actual commitment of Agency or City funds. Prior to committing any Agency or City funds for any project resulting from this action, Agency Staff would seek Commission approval. RECOMMENDATION: That the Community Development Commission adopt the attached Resolution. 1�2, - - Emil A. Marzullo, Interim Executive Director ---- -------------------—----------------------------------------------------------------------------------------------------------------------—-----------------------—--------------------- PAAgendas\Comm Dev Commission\CDC 2009\12-21-09 Ecclesia's-Memorandum Of Understanding SR.doc COMMISSION MEETING AGENDA Meeting Date: 12/21/2009 Agenda Item Number: � 1 RESOLUTION NO. 2 3 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AND 4 AUTHORIZING THE INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 5 ("AGENCY") TO EXECUTE THE 2009 MEMORANDUM OF 6 UNDERSTANDING BY AND BETWEEN THE AGENCY AND ECCLESIA'S ECONOMIC & COMMUNITY DEVELOPMENT 7 COLLABORATION (EECDC AFFORDABLE HOUSING PROGRAM) 8 9 WHEREAS, it is one of the goals of the Redevelopment Agency of the City of San 10 Bernardino ("Agency") to create affordable housing opportunities within the City of San Bernardino 11 ("City") for low and moderate income households; and 12 WHEREAS, it is also an Agency goal to build housing development capacity among local 13 non-profit affordable housing developers; and 14 WHEREAS, the Agency has access to financial resources from several sources, including 15 the Neighborhood Stabilization Program, tax-increment housing set-aside funds, and HOME funds 16 for the specific purpose of creating affordable housing opportunities for low and moderate income 17 households in the City; and 18 WHEREAS, Ecclesia's Economic & Community Development Collaboration ("EECDC") is 19 a local non-profit public benefit corporation organized for the specific purpose of creating housing 20 and community development opportunities within the City; and 21 WHEREAS, EECDC is embarking on a program to acquire residential properties and 22 redevelop these properties into affordable housing for low and moderate income households (the 23 "EECDC Affordable Housing Program"), and 24 WHEREAS, EECDC has been designated a Community Housing Development 25 Organization ("CHDO") by the United States Department of Housing and Urban Development 26 ("HUD"), and as such, it is eligible to receive HOME funding for specific housing developments; and 27 28 1 P.\Agendas\Resolutions\Resolutions\2009\I2-2I-09 Ecclesia's-Memorandum of Understanding CDC Reso.doe I WHEREAS, the Agency and EECDC (collectively, the "Parties") recognize an opportunity 2 to acquire residential properties at a favorable price under current housing market conditions in the 3 City for the purpose of implementing the EECDC Affordable Housing Program-, and 4 WHEREAS, the parties to the Memorandum of Understanding ("MOU") recognize that this 5 MOU is a statement of the present intent of the parties as to the subject matter hereof and that 6 subsequent agreements by and between one or more of the parties shall be required at later dates to 7 implement certain aspects of the EECDC Affordable Housing Program, and such subsequent 8 agreements shall be approved and entered into at the discretion of the parties prior to the 9 undertaking of acquisition of properties or otherwise entering into binding commitments to proceed j 10 with any aspect of the EECDC Affordable Housing Program; and 11 WHEREAS, such future agreements, should they occur, shall require the approval of the 12 Community Development Commission of the City of San Bernardino ("Commission"). 13 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE 14 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS 15 FOLLOWS: 16 Section 1. The facts set forth in the Recitals to this Resolution are accurate and correct in all 17 respects. 18 Section 2. The Commission hereby approves the MOU and hereby authorizes the Interim 19 Executive Director of the Agency to execute the MOU on behalf of the Agency together with such 20 technical and conforming changes as may be recommended by the Interim Executive Director of the 21 Agency and approved by the Agency Counsel. 22 Section 3. This Resolution shall take effect from and after its date of adoption by this 23 Commission. 24 25 26 27 28 2 P:\Agendas\Resolutions\Resolutions\2009\12-21.09 Ecclesia's-Memorandum of Understanding CDC Reso.doe 'Rl 1 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AND JL 5 2 AUTHORIZING THE INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 3 ("AGENCY") TO EXECUTE THE 2009 MEMORANDUM OF 4 UNDERSTANDING BY AND BETWEEN THE AGENCY AND ECCLESIA'S ECONOMIC & COMMUNITY DEVELOPMENT 5 COLLABORATION (EECDC AFFORDABLE HOUSING PROGRAM) 6 7 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community 8 Development Commission of the City of San Bernardino at a meeting 9 thereof, held on the day of 2009, by the following vote to wit: 10 Commission Members: Ayes Nays Abstain Absent 11 ESTRADA 12 BAXTER 13 BRINKER 14 SHORETT 15 KELLEY 16 JOHNSON 17 MC CAMMACK 18 19 Secretary 20 21 The foregoing Resolution is hereby approved this day of , 2009. 22 23 24 Patrick J. Morris, Chairperson Community Development Commission 25 of the City of San Bernardino 26 Approved as to Form: 27 28 BY Agency Co sel 3 P.Wgendas\Resolutions\Resolutions\2009\12-21-09 Ecelesia's-Memorandum of Understanding CDC Reso.doc 2009 MEMORANDUM OF UNDERSTANDING BY AND BETWEEN ECCLESIA'S ECONOMIC & COMMUNITY DEVELOPMENT COLLABORATION AND THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (ACQUISITION AND REDEVELOPMENT OF RESIDENTIAL PROPERTIES) DATED AS OF DECEMBER 21, 2009 3 2009 MEMORANDUM OF UNDERSTANDING (Acquisition and Redevelopment of Residential Properties) This 2009 Memorandum of Understanding (this '`MOU") is dated as of December 21, 2009 (the "Effective Date"), and is entered into by and between Ecclesia's Economic & Community Development Collaboration, a California 501(c)(3) public benefit corporation ("EECDC") and the Redevelopment Agency of the City of San Bernardino (the "Agency"), a public body, corporate and politic, being a community redevelopment agency existing pursuant to the Health & Safety Code of the State of California, and this MOU is entered into with respect to the following facts set forth in the Recitals: -- RECITALS -- WHEREAS, it is one of the Agency's goals to create affordable housing opportunities within the City, of San Bernardino ("City") for low and moderate income households; and WHEREAS, it is also an Agency goal to build housing development capacity among local non-profit affordable housing developers; and WHEREAS, the Agency has access to financial resources from several sources, including the Neighborhood Stabilization Program, tax-increment housing set-aside funds, and HOME funds for the specific purpose of creating affordable housing opportunities for low and moderate income households in the City; and WHEREAS, EECDC is a local non-profit public benefit corporation organized for the specific purpose of creating housing and community development opportunities within the City; and WHEREAS, EECDC is embarking on a program to acquire residential properties and redevelop these properties into affordable housing for low and moderate income households (the ­EECDC Affordable Housing Program"); and WHEREAS, EECDC has been designated a Community Housing Development Organization ("CHDO") by the United States Department of Housing and Urban Development ("HUD"), and as such, it is eligible to receive HOME funding for specific housing developments, and WHEREAS, the parties to this MOU recognize an opportunity to acquire residential properties at a favorable price under current housing market conditions in the City for the purpose of implementing the EECDC Affordable Housing Program; and WHEREAS, the parties to this MOU recognize that this MOU is a statement of the present intent of the parties as to the subject matter hereof and that subsequent agreements by and between one or more of the parties shall be required at later dates to implement certain aspects of the EECDC Affordable Housing Program, and such subsequent agreements shall be approved and entered into at the discretion of the parties prior to the undertaking of acquisition 1 R\Agendas\Agenda Auachments�Agenda Attachments\Agrmts-Amend 2009\12.21-09 Ecclesia's-Memorandum of Understanding.doc of properties or otherwise entering into binding commitments to proceed with any aspect of the EECDC Affordable Housing Program; and WE WHEREAS, such future agreements, should they occur, shall require the approval of the Community Development Commission of the City of San Bernardino ("Commission"). NOW, THEREFORE, ECCLESIA'S ECONOMIC & COMMUNITY DEVELOPMENT COLLABORATION AND THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO DO HEREBY MUTUALLY AGREE AS FOLLOWS: Section 1. Recitals. The parties acknowledge and agree that the recitals as set forth above are accurate and correct in all respects. Section 2. Accomplishment of Public Purposes. The parties acknowledge and agree that this MOU provides EECDC and the Agency with a means to identify and acquire certain eligible residential properties within the City and to create strategies to redevelop these properties as affordable housing for low and moderate income residents. The parties recognize the duties and responsibilities as provided in Sections 3 and 4 of this MOU. EECDC and the Agency shall jointly be responsible for identifying residential properties eligible for acquisition within the City. The Agency, in turn shall provide funding from the various funding sources named above for the acquisition of those properties identified by EECDC and the Agency for redevelopment as affordable housing. EECDC and the Agency shall work together to redevelop the acquired properties potentially involving third-party vendors, advisors and/or general contractors. Each potential redevelopment opportunity shall be subject to the approval of the Commission. Section 3. Duties and Responsibilities of EECDC. (a) EECDC shall have the following primary responsibilities in implementing the EECDC Affordable Housing Program: (i) to identify residential properties within the City that can be redeveloped as affordable housing for low and moderate income households in cooperation with the Agency; (ii) to present and seek approval from the Agency for any residential properties that it has identified as potential acquisition candidates under the EECDC Affordable Housing Program; (iii) to manage the escrow process and fulfill any documentation requirements needed to acquire those properties approved for acquisition by the Agency; (iv) to be the owner of record for any properties identified for acquisition under the EECDC Affordable Housing Program; and (v) to work jointly with the Agency to formulate a plan for the redevelopment of the acquired properties, and to execute the redevelopment of the acquired properties. 2 P Wgendas\Agenda Artachments\Agenda Attachments\Agrmts-Amend 2009\12-21-09 Ecclesia's-Memorandum of Understanding.doc (b) It is intended that EECDC will likely retain the ownership of all properties acquired under the EECDC Affordable Housing Program. After a property has been acquired, it is intended that EECDC will manage the redevelopment of the properties and either re-sell the property in the case of for-sale single family projects or arrange for the professional management of the acquired property in the case of rental projects. It is further intended that EECDC will be paid a developer's fee for each rehabilitated property that it redevelops and re- sells or manages. The amount and terms of such developer's fee shall be a function of that certain project to be determined by both parties at a future date. Section 4. Duties and Responsibilities of the Agency. (a) The Agency shall have the following primary responsibilities in implementing the EECDC Affordable Housing Program: (i) to identify residential properties within the City that can be redeveloped as affordable housing for low and moderate income households in cooperation with EECDC; (ii) to be the primary source of financing for the properties within the City identified for acquisition by EECDC and the Agency jointly; (iii) to work jointly with EECDC in formulating a rehabilitation plan and executing the redevelopment of the properties acquired under the EECDC Affordable Housing Program; and (iv) to make itself available to EECDC for the purposes of providing technical assistance on any aspect of the acquisition and redevelopment process utilized for acquiring properties under the EECDC Affordable Housing Program; and (v) to work with EECDC on the third party vendor, advisor, general contractor selection process. (b) The Agency intends to impose affordability covenants and other covenants and restrictions upon the properties acquired as a result of the EECDC Affordable Housing Program. The specific covenant terms and restrictions shall be determined to some extent by the funding sources used to acquire the property. Furthermore, the Agency intends to regularly monitor compliance as to the various properties with the Agency's covenants and restrictions. Section 5. Notices. Formal notices, demands and communications between EECDC and the Agency shall be deemed sufficiently given if(i) dispatched registered or certified mail via United State Postal Service, postage prepaid, return receipt requested, as designated in this Section 5, (ii) by personal delivery, (iii) express delivery service with written verification of delivery, or (iv) by electronic transmittal including fax transmissions with telephonic verification of receipt. Such written notices, demands and communications may be sent in the same manner to such other addresses as any party may from time to time designate by written notice to the other parties. 3 P\Agendas\Agenda Attachments\Agenda Attachments\Agrmts-Amend 2009\12-21-09 Ecclesia's-Memorandum of Understanding.doc . Copies of all notices, demands and communications shall be sent as follows: EECDC: Ecclesia's Economic & Community Development Collaboration Attention: Executive Director 1314 Date Street San Bernardino, CA 92404 Agency: Redevelopment Agency of the City of San Bernardino Attention: Interim Executive Director 201 North"E" Street, Suite 301 San Bernardino, California 92401 With a copy to: Redevelopment Agency of the City of San Bernardino Attention: Director of Housing and Community Development 201 North"E" Street, Suite 301 San Bernardino, California 92401 Notices which are dispatched by registered or certified mail through the United States Postal Service shall be deemed to be given three (3) business days after deposit with the United States Postal Service, and notices which are given by personal delivery shall be deemed given upon such personal deliver. Notices dispatched by express delivery service shall be deemed to have been given upon receipt by the party receiving such notice and execution of the delivery receipt, and notices dispatched through electronic transmittals shall be deemed to have given upon telephonic verification of receipt. Section 6. Indemnification and Hold Harmless. EECDC and the Agency hereby agree to indemnify, defend and hold harmless each of the other parties to this MOU and each of their officers, officials and employees from any and all loss, liability, claim, cost, expense or judgment, including attorney's fees, that may result from the implementation of this MOU by each of the respective parties for their actions and those actions or inactions as may be the direct or indirect results occasioned by each of the parties. In the event there is any legal challenge filed against one or more of the parties to this MOU based upon the approval and execution of this MOU by such party, the party named in such action, and each such additional party to this MOU if named in a such lawsuit, shall pay their own costs to defend such legal challenge as to their approval and execution of this MOU. Section 7. Term of MOU. The Effective Date of this MOU shall commence as of the date set forth in the introductory paragraph hereof which shall be the date of the final execution and delivery of this MOU by both parties. This MOU shall continue in full force and effect for three (3) years from and after the Effective Date (the "Term") unless the Term shall have been amended to either shorten or extend the Term by the parties hereto. The Term of this MOU shall automatically terminate upon such date when either party hereto terminates participation in this MOU pursuant to Section 8 hereof. Section 8. Termination of Participation by a Party. Either party to this MOU may terminate their participation in this MOU and their respective duties and obligations effective upon the delivery of notice to the other party. Such notice shall specify an effective date for such 4 P:\Agendas\Agenda AttachmentsWgenda Attachments\Agrmts-Amend 2009\12-21-09 Ecclesia's-Memorandum of Understanding.doc termination of participation in this MOU which date shall be not less than thirty (30) calendar days following the receipt of written notice by the other party to this MOU, as provided in Section 5 above. No such voluntary termination by a party shall relieve such party of the obligations incurred pursuant to Section 7 for indemnification, defense and hold harmless oblations to the other party for actions or events which arose prior to the effective date of any termination by a party. Section 9. Entire Agreement of the Parties. This MOU represents the entire agreement by both EECDC and the Agency with respect to the EECDC Affordable Housing Program as set forth herein. Section 10. Governing Law; Invalidity of Any Provision of MOU. This MOU shall be governed by the laws of the State of California. If any provision of this MOU is determined by a court of competent jurisdiction to be invalid or unenforceable as among the parties, the remaining provisions will continue in full force and effect. Section 11. Amendments. This MOU may only be amended, changed, modified or altered by a writing signed by each of the parties and approved by the respective governing boards thereof in the manner as required by applicable law. Section 12. Approval and Effective Date of MOU. This MOU has been duly approved and authorized for execution and delivery by the governing board of EECDC and by the Commission on behalf of the Agency, and this MOU has been duly executed and delivered by the parties hereto. This MOU may be executed in counterparts and when fully executed by ., the parties it shall be effective for all purposes as of the date set forth in the introductory paragraph as defined and set forth therein as the Effective Date. 5 P\Agendas\Agenda Attachments\Agenda Attachments\Agrmts-Amend 2009\12-21-09 Ecclesia's-Memorandum of Understanding.doc THIS MEMORANDUM OF UNDERSTANDING HAS BEEN DULY EXECUTED BY THE AUTHORIZED REPRESENTATIVES OF THE PARTIES HERETO AS SET FORTH BELOW. EECDC Ecclesia's Economic & Community Development Collaboration, a 501co) public benefit organization Date: By Paul Williams, President AGENCY Redevelopment Agency of the City of San Bernardino. a public body. corporate and politic i Date: By: Emil A. Marzullo, Interim Executive Director Approved as to Form and Legal Content: By: Timothy J. Sa , Agency Counsel 9 3 1 6 P\Agendas\Agenda AnachmemsAgenda Attachments\Agrmts-.4 mend 2009\12.21-09 Ecclesia's-Memorandum of Understanding.doc CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY FROM: Emil A. Marzullo SUBJECT: Ecclesia's Economic & Community Interim Executive Director Development Collaboration ("EECDC") Affordable Housing Program Memorandum of Understanding ("MOU") for the Acquisition DATE: December 4,2009 and Redevelopment of Residential Properties -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------—------------- Svnopsis of Previous Commission/Council/Committee Action(s): At the Adjourned Regular Redevelopment Committee meeting on December 3, 2009, Redevelopment Committee Members Johnson, Brinker and alternate Shorett unanimously voted to recommend that the Community Development Commission consider this action for approval. -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------—----------------- Recommended Motion(s): (Community Development Commission) Resolution of the Community Development Commission of the City of San Bernardino approving and authorizing the Interim Executive Director of the Redevelopment Agency of the City of San Bernardino ("Agency") to execute the 2009 Memorandum of Understanding by and between the Agency and Ecclesia's Economic&Community Development Collaboration(EECDC Affordable Housing Program) f Contact Person(s): Carey K.Jenkins Phone: (909)663-1044 Project Area(s): Citywide Ward(s): All Supporting Data Attached: 0 Staff Report Q Resolution(s) Q Agreement(s)/Contract(s) ❑Map(s) ❑ Letter(s) Funding Requirements: Amount: S -0- Source: N/A Budget Authority: N/A Signature: Fiscal Review: Emil A.Marzullo,Interim xecutive Director Ruses. PeJesus- Int Administrative Services Director - ----------------------------------------------------------------------------------------------------------------------------------------------------------------- - - Commission/Council Notes: -—-------—-—---—---—-—-—-----------—---——---------------—--------------—---------------------------------------------------------------------------------—-- P:Wgendas\Comm Dev Commission\CDC 2009\12-21-09 Ecclesia's-Memorandum Of Understanding SR.doc COMMISSION MEETING AGENDA Meeting Date: 12/21/2009 Agenda Item Number: "30 i ECONOMIC DEVELOPMENT AGENCY STAFF REPORT -- — - - - -------------------------------------------------------------------------- — ---- ---— — ECCLESIA'S ECONOMIC & COMMUNITY DEVELOPMENT COLLABORATION ("EECDC") AFFORDABLE HOUSING PROGRAM MEMORANDUM OF UNDERSTANDING ("MOU") FOR THE ACQUISITION AND REDEVELOPMENT OF RESIDENTIAL PROPERTIES BACKGROUND: The Redevelopment Agency of the City of San Bernardino ("Agency") has as one of its core missions the need to create affordable housing opportunities within the City of San Bernardino ("City"). Due to depressed housing market conditions in the City, there are currently many residential properties available at favorable price points, and many of these properties are foreclosed and/or abandoned. Given this confluence of market conditions and mission, the Agency seeks to acquire residential properties in the City for the purpose of redeveloping them as affordable housing for low- and moderate-income households. Such an acquisition and redevelopment program would simultaneously increase the affordable housing stock in the City, help to stabilize housing markets in the City by reducing the supply of unsold residential properties, and help to stabilize communities by revitalizing residential properties that could potentially be a blighting influence. In implementing its acquisition strategy, the Agency will work jointly with non-profit organizations from the local community to acquire residential properties and redevelop them as affordable housing. The Agency specifically seeks to work with non-profit organizations that demonstrate a capacity to develop affordable housing. By offering this opportunity to such organizations, the Agency will help to build the capacity of these non-profits; and thereby, increase the number of firms from the local community that can add to the City's affordable housing stock. In an attempt to meet this objective, the Agency has identified Ecclesia's Economic & Community Development Collaboration ("EECDC") as a local non-profit organization that has demonstrated an interest and capacity for developing affordable housing in the community. EECDC is a non-profit community development corporation with a mission to provide economic, community and housing development opportunities to benefit residents of the City. EECDC is a ministry of the Ecclesia Christian Fellowship Church ("Ecclesia"), governed by a separate Board of Directors from Ecclesia. The Ecclesia, which is located in the northeastern section of the City, has a growing congregation that has been in the City since 1993. The Ecclesia has provided various community development services to residents of the City and members of its congregation which include financial literacy classes, emergency assistance counseling, youth programs and day care services. In addition to community services and economic development activities, the Ecclesia also owns and operates the Taft T. Newman Christian School for children Kindergarten through 8th grade. The Ecclesia and all of its numerous activities are overseen by Senior Pastor Joshua Beckley. As a recognized non-profit public benefit 501(c)(3) organization, the mission of EECDC is executed through a series of activities that includes the creation of jobs, housing and business development opportunities. The organization is overseen by an eight-member board of directors that includes Mr. Paul Williams as its President. Both Ecclesia and EECDC are located at 1314 Date Street in San Bernardino, — - ------------ ._ —---------- ---------------- --------- ---- P\Wgendas\CommDevCommission\CDC 2009\12-21-09 Ecclesia's-Memorandum Of Understanding SR.doc COMMISSION MEETING AGENDA Meeting Date: 12/21/2009 Agenda Item Number: Economic Development Agency Staff Report Ecclesia's MOU Page 2 California. The area of influence for EECDC is generally defined as the northeastern area of the City which constitutes a significant amount of residential uses followed by neighborhood supporting commercial and retail activities, primarily along Del Rosa and Highland Avenues. In addition to its designation as a 501(c)(3) organization, EECDC is a Community Housing Development Organization ("CHDO"). In order to attain this status, EECDC had to meet certain U.S. Department of Housing and Urban Development ("HUD") program requirements, as such, EECDC is eligible for HOME funding set aside specifically for CHDO's. As a CHDO, EECDC could assist the Agency in investing the Agency's HOME funds identified for distribution to CHDO's. CURRENT ISSUE: The Agency would like to work jointly with EECDC to acquire residential properties within the City at a favorable price for the purpose of redeveloping these properties as affordable housing for low- and moderate-income households (the "EECDC Affordable Housing Program"). Under its arrangement with EECDC, both the Agency and EECDC would be responsible for identifying acquisition properties within the City. Any property identified for acquisition by EECDC would have to be evaluated and recommended for approval by the Agency. Final approval would be provided through a Community Development Commission action before any property could be acquired. Upon approving a property for acquisition and redevelopment, EECDC would become the legal owner of the property. The property's redevelopment would be planned together by the Agency and EECDC, and EECDC would actually be responsible for implementing the redevelopment of the property. Before the acquisition or redevelopment of any property could take place, the Agency would enter into a development agreement with EECDC, or any such other agreement as necessary. Such agreement must specify the terms and conditions under which the Agency would provide acquisition and development financing to EECDC such as EECDC's responsibilities as the owner and developer of the property, the design and use of the property, the covenants and restrictions to be imposed on the property by the Agency, and any other terms and/or conditions that the Agency might deem necessary to protect its financial investment and ensure adherence to its housing policies. The financial assistance provided by the Agency would be derived from various affordable housing funding sources, including the HOME Investment Partnerships Program ("HOME"), the Neighborhood Stabilization Program ("NSP") and the Agency's housing set-aside funds. Due to EECDC's designation as a CHDO organization, the Agency would also be able to deploy HOME housing funds especially identified for these types of organizations. By agreeing to assist the EECDC Affordable Housing Program, the Agency would not be committing to acquire any residential properties or provide any financing for the acquisition and redevelopment of these properties. Rather, the Agencv would only be making a commitment to work with EECDC to identify candidates for acquisition and redevelopment. Any actual commitment to acquire a property or provide financing would not be enforceable until the Agency and EECDC enter into a legally binding agreement, such as a Disposition and Development Agreement or some similar type of agreement. Such an agreement would only be executed after the Agency and EECDC have fully evaluated and agreed upon the acquisition and redevelopment potential of a given property and the Agency has received approval from the Community Development Commission of the City of San Bernardino ("Commission") and upon approval of the project by the standard City development project approval process. - -------------------------------------- — — - - _ P\Agendas\Comm Dev Commission\CDC 2009\12-21-09 Ecclesia's-Memorandum Of Understanding SR.doc COMMISSION MEETING AGENDA Meeting Date: 12/21/2009 Agenda Item Number: P-W Economic Development Agency Staff Report Ecclesia's MOU Page 3 ENVIRONMENTAL IMPACT: No environmental clearance is required under the California Environmental Quality Act ("CEQA") as a result of entering into this Memorandum of Understanding. No approval of a particular project is being requested through this Memorandum of Understanding. FISCAL IMPACT: There is no City General Fund impact as a result of this Action. This Action does not represent an actual commitment of Agency or City funds. Prior to committing any Agency or City funds for any project resulting from this action, Agency Staff would seek Commission approval. RECOMMENDATION: That the Community Development Commission adopt the attached Resolution. r Emil A. Marzullo, Interim Executive Director P:Wgendas\CommDevCommission\CDC 2009\12-21-09 Ecclesia's-Memorandum Of Understanding SR.dm COMMISSION MEETING AGENDA Meeting Date: 12/21/2009 Agenda Item Number: - e3(p