HomeMy WebLinkAbout2009-272
(NOTE: COMPANION RESOLUTION CDC/2009-38)
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RESOLUTION NO. 2009-272
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO APPROVING AND AUTHORIZING THE
EXPENDITURE OF CERTAIN NEIGHBORHOOD STABILIZATION
PROGRAM ("NSP") FUNDS TO BE UTILIZED FOR ACQUISITION,
DEMOLITION, REHABILITATION AND RESALE ACTIVITIES
PURSUANT TO THE HOUSING AND ECONOMIC RECOVERY ACT OF
2008 ("HERA") IN ACCORDANCE WITH NSP GRANT NUMBER B-08-MN-
06-0520
8 WHEREAS, the City of San Bernardino (the "City") has received a certain grant in the
9 principal amount of $8,408,558 as Neighborhood Stabilization Program ("NSP") Funds pursuant to
10 the Housing and Economic Recovery Act of 2008 ("HERA") and in accordance with a Funding
11 Approval and Grant Agreement duly executed by and between the City and the United States
12 Department of Housing and Urban Development ("HUD") as NSP Grant Number B-08-MN-06-
13 0520;and
14 WHEREAS, the City intends to authorize the Redevelopment Agency of the City of San
15 Bernardino (the "Agency"), pursuant to this Resolution, to administer certain NSP Funds as shall be
16 received by the City pursuant to said NSP Grant and to otherwise provide for and administer the
17 NSP program that shall be undertaken within the City by the Agency as required of the City under
18 the Funding Approval and Grant Agreement; and
19 WHEREAS, the City recognizes that an amount equal to 25% of the NSP Funds awarded to
20 the City are to be expended to benefit households whose incomes are no greater than 50% of the
21 Area Median Income ("AMI") as recognized by HUD; and
22 WHEREAS, the Agency intends to submit a development plan utilizing NSP Funds targeted
23 to households at or below 50% of the AMI under a separate action; and
24 WHEREAS, the City recognizes that various non-profit corporations, whether controlled by
25 the Agency or which are independent of the Agency, will be acquiring title to single-family
26 foreclosed homes from the applicable lenders in an effort to implement the process for the
27 acquisition, rehabilitation or demolition and/or resale of all such foreclosed properties or building
28 lots after completion ofrehabilitation or demolition; and
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2009-272
1 WHEREAS, it is necessary at this time for the City to specifically authorize the actions as
2 required to be undertaken by the Agency for the administration of the NSP Funds and the
3 disbursement of such NSP Funds to various non-profit corporations accepting title to foreclosed
4 properties within designated target areas or elsewhere in the City as may be permitted by HERA and
5 in furtherance of the use of the NSP Funds by the Agency on behalf of the City; and
6 WHEREAS, the Funding Approval and Grant Agreement (the "NSP Grant Agreement") by
7 and between HUD and the City as executed on April 23, 2009, and a copy of said Agreement is
8 attached to this Resolution as Exhibit "A".
9 NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED BY
10 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS
11 FOLLOWS:
12 Section 1. The facts set forth in the Recitals to this Resolution are accurate and correct in all
13 respects.
14 Section 2. This Mayor and Common Council of the City of San Bernardino (this "Council")
15 hereby authorizes and directs the Agency staff, subject to confirmation and ratification by the
16 Community Development Commission of the City of San Bernardino (the "Commission"), to
17 implement certain aspects of the NSP program and the disbursement of certain NSP grant funds that
18 are available to the City pursuant to HERA and as further set forth in the NSP Grant Agreement.
19 The Agency shall be solely responsible for all administrative, audit and compliance matters required
20 either under HERA or the NSP Grant Agreement as may be required for the use of the NSP Funds
21 within the City.
22 Section 3. This Council further authorizes and directs that the NSP Funds as shall be
23 received by the City and administered by the Agency as authorized by this Resolution shall be used
24 and applied for the following categories of expenditures and programs and not to exceed the dollar
25 amounts as provided in this Section 3:
26 (a) $920,000 - Down payment assistance for qualified single family homebuyers;
27 (b) $2,100,000 - housing opportunities for households at or below 50% of the Area
28 Median Income, the specific uses of which shall be submitted for Council
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2009-272
consideration under a future action and shall not be expended until such Council
authority has been granted;
$920,000 for acquisition, demolition and redevelopment of single-family and multi-
family residential structures to be acquired by either the Agency or non-profit
corporations which are either independent of the Agency or controlled by the
Agency; and
$3,700,000 for the acquisition, rehabilitation and resale of single-family foreclosed
residences through an Intermediary Services Program as may be initiated and
approved by the Commission for the Agency either by the Agency or through non-
profit corporations which are either independent of the Agency or controlled by the
Agency.
Staff is authorized to make a one-time transfer up to 20% of any line item to another
line item based on need.
14 The Agency shall be further authorized and directed to payor reimburse to the Agency from the
15 NSP Funds as are allocated to the various categories of housing activities specified above such
16 dollar amounts as are required to provide for the effective administration and management of the
17 NSP program as shall be implemented by the Agency. Such dollar amounts of the NSP Funds to be
18 used and applied by the Agency for such administration and management shall not exceed those
19 dollar limitations and other limitations on eligible expenditures as may be established by HUD
20 either pursuant to HERA or which are otherwise applicable to the use of the NSP Funds.
21 Section 4. This Resolution shall take effect upon its adoption and execution in the manner
22 as required by the City Charter.
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2009-272
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO APPROVING AND AUTHORIZING THE
EXPENDITURE OF CERTAIN NEIGHBORHOOD STABILIZATION
PROGRAM ("NSP") FUNDS TO BE UTILIZED FOR ACQUISITION,
DEMOLITION, REHABILITATION AND RESALE ACTIVITIES
PURSUANT TO THE HOUSING AND ECONOMIC RECOVERY ACT OF
2008 ("HERA") IN ACCORDANCE WITH NSP GRANT NUMBER B-08-MN-
06-0520
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
7 Common Council of the City of San Bernardino at a joint regular
meeting
8 thereof, held on the 20th day of July ,2009, by the following vote to wit:
9 Council Members: Aves Navs Abstain Absent
10 ESTRADA x
11 BAXTER -1L
12 BRINKER -----X-
13 SHORETT x
14 KELLEY x
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15 JOHNSON -1L
16 MC CAMMACK -----X-
17 ~u '- h. ~jlA-/e-,
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Rachel G. Clark, City Clerk
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20 The foregoing Resolution is hereby approved this d.. \ day of
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July
,2009.
24 Approved as to Form:
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26 By:
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jo,,~^' t; ~^^ ~ 11-
James F. Penman, Cit Att(t
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2009-272
EXHIBIT "A"
2009-105
FUNDING APPROVAL AND GRANT AGREEMENT FOR
NEIGHBORHOOD STABILIZATION PROGRAM (NSP) FUNDS
AS AUTHORIZED AND APPROPRIATED UNDER THE
HOUSING AND ECONOMIC RECOVERY ACT OF 2008
(PUBLIC LAW 110-289, JULY 30, 2008)
NSP GRANTEE:
City of San Bernardino
NSP GRANT NUMBER:
B-08-MN-06-0520
NSP GRANT AMOUNT:
$8,408,558
MAR - J 20:r:
NSP APPROVAL DATE:
This Grant Agreement between the Department of Housing and Urban Development (HOD) and
City of San Bemardino (Grantee) is made pursuant to the authority of sections 2301- 2304 of
the Housing and Economic Recovery Act of 2008 (public Law 110-289 (July 30, 2008))
(HERA), The program established pursuant to section 2301-2304 is known as the
"Neighborhood Stabilization Program" or "NSP," The Notice of Allocations, Application
Procedures, Regulatory Waivers Granted to and Altemative Requirements for Redevelopment of
Abandoned and Foreclosed Homes Under the Housing and Economic Recovery Act, 2008
published at 73 FR 58330 (October 6, 2008) (Notice); HERA; the Grantee's submission for NSP
assistance (Grantee Submission); the HlJD regulations at 24 CFR Part 570 (as modified by the
Notice and as now in effect and as may be amended from time to time) (Regulations); and this
Funding Approval, including any spccial conditions, constitute part of the Grant Agreement.
Subject to the provisions of this Grant Agreement, HOD will make NSP Grant Funds in the
amount of $8,408,558 available to the Grantee upon execution of this Grant Agreement by the
parties. The Grantee shall have 18 months from the date of HlJD's execution of this Grant
Agreement to obligate the NSP Grant Amount pursuant to the requirements of HERA and the
Notice. The Grantee shall have 48 months from the date of HlJD's execution of this Grant
Agreement to expend the NSP Grant Amount pursuant to the requirements of the Notice, The
NSP Grant Funds may be used to pay eligible costs arising from eligible uses incum:d after the
NSP Approval Date provided the activities to which such costs are related are carried out in
compliance with all applicable requirements. Pre-award planning and general administrative
costs may not be paid with funding assistance except as permitted in the Notice; the Notice limits
such costs to those incun'ed on or after September 29, 2008. Other pre-award costs may not be
paid with funding assistance except as petmitted by 24 CFR 570.200(h); for pUlposes of N'SP,
such costs are limited to those incurred on or after the date that the NSP substantial amendment
\Vas received by HOD,
2009-272
2009-105
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The Grantee agrees to assume all of the responsibilities for environmental review,
decision making, and actions, as specified and required in regulations issued by the Secretary
pursuant to Section 104(g) of Title I of the Housing and Community Development Act, as
amended (42 U.S.C. 5304) and published in 24 CPR Pmt 58. The Grantee further acknowledges
its responsibility for adherence to the Grant Agreement by sub-recipient entities to which it
makes funding assistance hereunder available,
This Grant Agreement may be amended only with the prior written approval of HUD. In
considering proposed amendments to this Grant Agreement, HUD shall review, among other
things, whether the amendment is otherwise consistent with HERA, the Notice, and the
. Regulations.
. The Grantee may amend its Grantee Submission; however, such amendments, including
substantial amendments as defined in 24 CPR Part 91, wiII be subject to the requirements of 24
CFR Part 91 (or any successor regulation) and any revisions HOD may make to the Notice (or
any successor Notice or regulation).
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The Grantee shall at all times maintain an up-to-date copy of its Grantee Submission, including
all amendments approved by HOD, on its Internet website as required by the Notice. FUl1her,
the Grantee shall maintain infOlmation on all drawdowns, deposits, and expenditures of grant
funds and program income under this Funding Approval and Grant Agreement and any other
records required by 24 CPR 570.506, in its files and shall make such information available for
audit or inspection by duly authorized representatives of HOD, HOD's Office of the Inspector
General, or the Comptroller General of the United States.
The Grantee shall submit information on perfonnance measurement as established by the
Secretary for activities undertaken with NSP grant funds.
The Grantee is advised that providing false, fictitious 01' misleading information with respect to
NSP Grant Funds may result in criminal, civil or administrative prosecution under 18 USC
~IOOI, 18 USC ~1343, 31 USC ~3729, 31 USC ~3801 or another applicable statute.
Close-out of this grant shall be subject to the provisions of 24 CPR 570.509 or such close-out
instructions as may hereafter be issued by HUD specifically for NSP grants.
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2009-272
This NSP Grant Agreement is binding with respect to BUD in accordance with its terms upon
the execution by BUD in the space provided above, subject to execution on behalf of the
Grantee,
The United States Department of
Housing and Urban Development
Signature of Authozized Offici
William G. Vasquez
Name of Authorized Official
Director
Community Planning and Development
Title of Authorized Official
3<1~
Date of Sigrtur
For Hun CFO Use Onlv
Current Balances
Increases/Decreases
The Grantee
City of San Bernardino
~~al
U/Z/e/:: V /l1~:>
Name of Authozized Official
/J7.4f"N'~
Title of Authorized Official
1//Z3/0'1
Date of Signature
95-6000772
Grantee Tax Identification Number
Ending Balance
Date
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