Loading...
HomeMy WebLinkAboutCDC/2010-031 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. cDC/2010-3 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 INLAND EMPIRE CONCERNED AFRICAN AMERICAN CHURCHES (THE IECAAC AFFORDABLE HOUSING PROGRAM) WHEREAS, one of the goals of the Redevelopment Agency of the City of San Bernardino ("Agency") is 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, the IECAAC 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, the IECAAC is embarking on a program to acquire residential properties and redevelop these properties into affordable housing for low- and moderate-income households (the "IECAAC Affordable Housing Program"); and WHEREAS, the Agency and the IECAAC (collectively the "Parties") 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 IECAAC Affordable Housing Program; and WHEREAS, the parties to this Agreement recognize that this Agreement is a statement the present intent of the parties as to the subject matter hereof and that subsequent agreements by 1 P:\Agendas\Resolutions\Resolutions\2010\01-04-10 IECAAC Memorandum of Understanding CDC Reso.doc CDC/2010-3 ~~ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 and between one or more of the parties shall be required at later dates to implement certain aspects' of the IECAAC 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 of properties or otherwise entering into binding commitments to proceed with any aspect of the IECAAC Affordable Housing Program; and WHEREAS, such future agreements, should they occur, shall require the approval of the Community Development Commission. NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS FOLLOWS: Section 1. The facts set forth in the Recitals to this Resolution are accurate and correct in all respects. Section 2. The Community Development Commission of the City of San Bernardino ("Commission") hereby approves the MOU in the form as attached hereto as Exhibit "A" and hereby authorizes the Interim Executive Director of the Redevelopment Agency of the City of San Bernardino to execute the MOU on behalf of the Agency together with such technical and conforming changes as may be recommended by the Executive Director of the Agency and approved by the Agency Counsel. Section 3. This Resolution shall take effect from and after its date of adoption by this Commission. /// /// /// /// /// /// /// /// 2 P:\Agendas\Resolutions\Resolutions\2010\01-04-]0 IECAAC Memorandum of Understanding CDC Reso.doc CDC/2010-3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 INLAND EMPIRE CONCERNED AFRICAN AMERICAN CHURCHES (THE IECAAC AFFORDABLE HOUSING PROGRAM) I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community Development Commission of the City of San Bernardino at a joint regular meeting thereof, held on the 4th day of January , 2010, by the following vote to wit: Commission Members: Ayes Nays Abstain Absent ESTRADA x BAXTER x BRINKER x SHORETT x KELLEY x JOHNSON x MC CAMMACK x _, Secretary:=kk~„\~~ , The foregoing Resolution is hereby approved this _ ~'¢ day of January , 2010. trick Morris, Chao on Co nity Development Commission of the City of San Bernardino Approved as to Form: By: Agency unsel 3 P:Wgendas\Resolutions\Resolutions\2010\01-04-10IPCAAC Memorandum of Understanding CDC Reso.doc CDC/2010-3 1 Exhibit "A" 2 Memorandum of Understanding 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 4 P:\Agendas\Resolutions\Resolutions\20]0\01-04-10 IECAAC Memorandum of Understanding CDC Reso.doc CDC/2010-3 MEMORANDUM OF UNDERSTANDING BY AND AMONG INLAND EMPIRE CONCERNED AFRICAN AMERICAN CHURCHES AND THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (Acquisition and Redevelopment of Residential Properties) Dated as of January 4, 2010 CDC/2010-3 MEMORANDUM OF UNDERSTANDING (Acquisition and Redevelopment of Residential Properties) This Memorandum of Understanding (this "Agreement") is dated as of January 4, 2010 (the "Effective Date"), and is entered into by and among Inland Empire Concerned African American Churches, a California 501(c)(3) public benefit corporation ("IECAAC") and the Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic, being a community redevelopment agency existing pursuant to the Health & Safety Code of the State of California (the "Agency"), and this Agreement 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, the Agency has access to financial resources from several sources, including the Neighborhood Stabilization Program (NSP), 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, it is also an Agency goal to build housing development capacity among local non-profit affordable housing developers that can qualify under the Community Housing Development Organization ("CHDO") status designation established by the United States Department of Housing and Urban Development ("HUD") for the purpose of providing more vehicles for the Agency's funding allocated specifically to CHDO's; and WHEREAS, the IECAAC is a local non-profit public benefit corporation organized for the specific purpose of creating housing and community development opportunities within the City and has the potential to attain CHDO status through its affordable housing development efforts in conjunction with the Agency; and WHEREAS, the IECAAC is embarking on a program to acquire residential properties and redevelop these properties into affordable housing for low- and moderate-income households (the "IECAAC Affordable Housing Program"); and WHEREAS, the parties to this Agreement 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 IECAAC Affordable Housing Program; and WHEREAS, the parties to this Agreement recognize that this Agreement 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 IECAAC 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 of properties or otherwise entering into binding commitments to proceed with any aspect of the IECAAC Affordable Housing Program; and 1 P:\Agendas\Agenda Attachments\Agenda Attachments\Agrmts-Amend 2010\O1-04-10 IECAAC Memorandum of Understanding Draft.doc CDC/2010-3 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, THE INLAND EMPIRE CONCERNED AFRICAN AMERICAN CHURCHES 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 Agreement provides IECAAC 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 Agreement. IECAAC 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 IECAAC and the Agency for redevelopment as affordable housing. IECAAC 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 Community Development Commission. Section 3. Duties and Responsibilities of IECAAC. (a) IECAAC shall have the following primary responsibilities in implementing the IECAAC 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 IECAAC 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 IECAAC 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; and (vi) to apply for CHDO status under HUD as soon as it is eligible to apply. 2 P.Wgendas\Agenda Attachments\Agenda Attachments\Agrmts-Amend 2010\O1-04-10 IECAAC Memorandum of Understanding Draft.doc CDC/2010-3 (b) It is intended that IECAAC will likely retain the ownership of all properties acquired under the IECAAC Affordable Housing Program. After a property has been acquired, it is intended that IECAAC 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 IECAAC 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 IECAAC 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 IECAAC; (ii) to be the primary source of financing for the properties within the City identified for acquisition by IECAAC and the Agency jointly; (iii) to work jointly with IECAAC in formulating a rehabilitation plan and executing the redevelopment of the properties acquired under the IECAACC Affordable Housing Program; and (iv) to make itself available to IECAAC for the purposes of providing technical assistance on any aspect of the acquisition and redevelopment process utilized for acquiring properties under the IECAAC Affordable Housing Program; and (v) to work with IECAAC on the third party vendor, advisor, general contractor selection process; and (vi) to assist IECAAC in attaining its CHDO status so long as IECAAC demonstrates good faith efforts to implement the IECAAC Affordable Housing Program. (b) The Agency intends to impose affordability covenants and other covenants and restrictions upon the properties acquired as a result of the IECAAC Affordable Housing Program. The specific covenant terms and restrictions shall be determined to some extent by the funding source(s) used to acquire the property. Furthermore, the Agency intends to regularly monitor the various properties' compliance with the Agency's covenants and restrictions. Section 5. Notices. Formal notices, demands and communications among IECAAC 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.Wgendas\Agenda Attachments\Agenda Attachments\Agrmts-Amend 2010\07-04-101ECAAC Memorandum of Understanding DraR.doc CDC/2010-3 Copies of all notices, demands and communications shall be sent as follows: IECAAC: Inland Empire Concerned African American Churches 1777 West Baseline Road San Bernardino, CA 92411 Attention: Bishop Phillip Powell, President Phone: (909) 425-2615 Fax: (909) 425-5565 AGENCY: Redevelopment Agency of the City of San Bernardino 201 North "E" Street, Suite 301 San Bernardino, California 92401 Attention: Emil A. Marzullo, Interim Executive Director Phone: (909) 663-1044 Fax: (909) 888-9413 WITH A COPY TO: Redevelopment Agency of the City of San Bernardino 201 North `B" Street, Suite 301 San Bernardino, California 92401 Attention: Carey K. Jenkins, Director of Housing and Community Development Phone: (909) 663-1044 Fax: (909) 888-9413 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 delivery. 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. The IECAAC and the Agency hereby agree to indemnify, defend and hold harmless each of the other parties to this Agreement 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 Agreement 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 Agreement based upon the approval and execution of this Agreement by such party, the party named in such action, and each such additional party to this Agreement if named in such lawsuit, shall pay their own costs to defend such legal challenge as to their approval and execution of this Agreement. Section 7. Term of Agreement. The Effective Date of this Agreement 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 Agreement by both parties. This Agreement 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 4 P:\Agendas\Agenda Attachments\.4genda Attachments\Agrmts-Amend 2010\O1-04-10 IECAAC Memorandum of Understanding Draft.doc CDC/2010-3 of this Agreement shall automatically terminate upon such date when either party hereto terminates participation in this Agreement pursuant to Section 8 hereof. Section 8. Termination of Participation by a Party. Either party to this Agreement may terminate their participation in this Agreement 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 termination of participation in this Agreement which date shall be not less than thirty (30) calendar days following the receipt of written notice by the other party to this Agreement, 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 Agreement represents the entire agreement by both the IECAAC and the Agency with respect to the IECAAC Affordable Housing Program as set forth herein. Section 10. Governing Law; Invalidity of Any Provision of Agreement. This Agreement shall be governed by the laws of the State of California. If any provision of this Agreement 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 Agreement 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 Agreement. This Agreement has been duly approved and authorized for execution and delivery by the governing board of the IECAAC and by the Commission on behalf of the Agency, and this Agreement has been duly executed and delivered by the parties hereto. This Agreement 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:Wgendas\A1;enda Attachments\P.genda Attachments\Agrmts-Amend 2010\O1-04-101ECAAC Memorandum of Understanding Draft.doc CDC/2010-3 This Agreement has been duly executed by the authorized representatives of the parties hereto as set forth below. Date: ~ ~ '~ ~~~ ~- ~~ Approved as to Form and Legal Content: By: i Timothy J. S ,Agency Counsel Date: ~~ AGENCY Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic ~-- \ ~'~ __~ By: Emil A. Marzullo, Interim Executive Director IECAAC Inland Empire Concerned African American Churches, a 501(c)(3) public benefit organization By: ~~ _` /` Bishop Phillip Powell, President 6 P:\Agendas\Agenda Attachments\Agenda Attachments\Agrmts-Amend 2010\O1-04-10 IECAAC Memorandum of Understanding Draft.doc