HomeMy WebLinkAboutCDC/2010-43
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RESOLUTION NO. CDC/2010-43
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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
AGREEMENTS BY AND BETWEEN THE AGENCY AND NEIGHBORHOOD
HOUSING SERVICES OF THE INLAND EMPIRE ("NHSIE") FOR THE
ADMINISTRATION OF A) THE SINGLE-FAMILY BEAUTIFICATION
GRANT PROGRAM, B) THE SINGLE-FAMILY REHABILITATION LOAN
PROGRAM AND C) THE HOMEBUYER EDUCATION SERVICES, SUBJECT
TO ANNUAL FUNDING AVAILABILITY
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9 WHEREAS, the Redevelopment Agency of the City of San Bernardino ("Agency") has
10 established an affordable housing improvement program known as the "Single-Family Residential
11 Revitalization Program" (the "Program"); and
12 WHEREAS, the purpose of the Program IS to provide low- and moderate-income
13 homeowners ("Qualified Homeowners") who reside in the City of San Bernardino (the "City"), with
14 a special source of loan and grant funds to undertake certain housing rehabilitation and correction
15 work (including asbestos and lead containing materials abatement work, handicap accessibility
16 improvements and building code deficiency corrections) and certain exterior landscape and
17 structural beautification improvements of owner-occupied, single-family residential dwelling units;
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19 WHEREAS, the application of the proceeds of such loans and grants to such work by the
20 Qualified Homeowners under the specifications of the Program promotes and expands the supply 0
21 affordable housing in the City and fosters the elimination and prevention of blight; and
22 WHEREAS, the Agency, on behalf of the City, together with NHSIE, desire to enter into a
23 new Agreement as set forth herein to be in full force and effect from and after the date of this
24 Agreement for an amount of $784,875 from the Agency's Low and Moderate Income Housing Fund
25 to NHSIE to implement a Single Family Residence Beautification Grant Program as per the
26 provisions of the Agreement, a copy of which is attached hereto as Exhibit "A", for a 3-year term
during the fiscal years of 2010-2011, 2011-2012 and 2012-2013 subject to and conditioned upon
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annual renewal by the Agency and performance by NHSIE for the three (3) year term of this
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Agreement; and
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CDC/2010-43
1 WHEREAS, the Agency, on behalf of the City, together with NHSIE, desire to enter into a
2 new Agreement as set forth herein to be in full force and effect from and after the date of this
3 Agreement for an amount of $287,500 from the Agency's Low and Moderate Income Housing Fund
4 to NHSIE to implement a Single Family Residence Rehabilitation Loan Program as per the
5 provisions of the Agreement, a copy of which is attached hereto as Exhibit "B", for a 3-year term
6 during the fiscal years of 2010-2011, 2011-2012 and 2012-2013 subject to and conditioned upon
7 annual renewal by the Agency and performance by NHSIE for the three (3) year term of this
Agreement; and
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WHEREAS, the City has received formula HOME Investment Partnership allocation for
Fiscal Year 2010-2011 and anticipates receiving said funds yearly thereafter, from the U.S.
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Department of Housing and Urban Development ("HUD") to carry out eligible activities in
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accordance with federal program requirements at 24 CFR 92 (the "Homebuyer Education
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Program"), and the Agency is designated by the Mayor and Common Council of the City of San
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Bernardino ("Council") to administer such Homebuyer Education Program on behalf of the City;
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and
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WHEREAS, the Agency, on behalf of the City, together with NHSIE, desire to enter into a
new Agreement as set forth herein to be in full force and effect from and after the date of this
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Agreement for an amount of Three Hundred Dollars ($300) for each participant who resides or who
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19 works in the City and who completes the Homebuyer Education Program, as described in Exhibit
20 "c" attached hereto and incorporated herein by this reference, for a 3-year term during the fiscal
21 years of2010-2011, 2011-2012 and 2012-2013 subject to and conditioned upon annual renewal by
22 the Agency and the City receiving its annual allocation of federal HOME Administration Funds
23 and performance by NHSIE for the three (3) year term of this Agreement.
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NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE
25 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS
26 FOLLOWS:
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Section 1.
The Community Development Commission of the City of San Bernardino
28 ("Commission") hereby approves the Agreement as of the date of said Agreement. The
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CDC/2010-43
1 Commission authorizes and directs the Interim Executive Director of the Agency to execute the
2 Agreement together with such nonsubstantive modifications as deemed necessary and as approved
3 by the Interim Executive Director of the Agency, with the concurrence of Agency Counsel,
4 between the Agency and NHSIE, in an amount not to exceed $784,875 annually, for a period of 3
5 fiscal years comprised of 2010-2011, 2011-2012 and 2012-2013 subject to and conditioned upon
6 annual renewal by the Agency and performance by NHSIE for the three (3) year term of this
7 Agreement, in accordance with the provisions of the Agreement, a copy of which is attached hereto
8 as Exhibit "A" and incorporated herein by reference.
9 The Commission hereby approves the Agreement as of the date of said Agreement. The
10 Commission authorizes and directs the Interim Executive Director of the Agency to execute the
11 Agreement together with such nonsubstantive modifications as deemed necessary and as approved
12 by the Interim Executive Director of the Agency, with the concurrence of Agency Counsel,
13 between the Agency and NHSIE, in an amount not to exceed $287,500 annually, for a period of 3
14 fiscal years comprised of 2010-2011, 2011-2012 and 2012-2013 subject to and conditioned upon
15 annual renewal by the Agency and performance by NHSIE for the three (3) year term of this
16 Agreement, in accordance with the provisions of the Agreement, a copy of which is attached hereto
17 as Exhibit "B" and incorporated herein by reference.
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The Commission hereby approves the Agreement as of the date of said Agreement. The
19 Commission authorizes and directs the Interim Executive Director of the Agency to execute the
20 Agreement together with such nonsubstantive modifications as deemed necessary and as approved
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by the Interim Executive Director of the Agency, with the concurrence of Agency Counsel,
22 between the Agency and NHSIE, in an amount of Three Hundred Dollars ($300) for each
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participant who resides or who works in the City and who completes the Homebuyer Education
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Program, for a period of3 fiscal years comprised of2010-2011, 2011-2012 and 2012-2013 subject
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to and conditioned upon annual renewal by the Agency and the City receiving its annual allocation
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of federal HOME Administration Funds and performance by NHSIE for the three (3) year term of
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this Agreement, in accordance with the provisions of the Agreement, a copy of which is attached
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hereto as Exhibit "C" and incorporated herein by reference.
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CDC/2010-43
This Resolution shall take effect from and after its date of adoption by this
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CDC/2010-43
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
AGREEMENTS BY AND BETWEEN THE AGENCY AND NEIGHBORHOOD
HOUSING SERVICES OF THE INLAND EMPIRE ("NHSIE") FOR THE
ADMINISTRATION OF A) THE SINGLE-FAMILY BEAUTIFICATION
GRANT PROGRAM, B) THE SINGLE-FAMILY REHABILITATION LOAN
PROGRAM AND C) THE HOMEBUYER EDUCATION SERVICES, SUBJECT
TO ANNUAL FUNDING AVAILABILITY
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
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meeting
thereof, held on the 2nd day of August
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Commission Members: Aves
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MARQUEZ x
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DES JARDINS x
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BRINKER x
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14 x
SHORETT
15 KELLEY x
16 JOHNSON x
17 MC CAMMACK
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,2010, by the following vote to wit:
Nays
Abstain
Absent
x
~
Secretary
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The foregoing Resolution is hereby approved this -+7)/ day of August
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,2010.
~~
- ~: - unity Development Commission
of the City of San Bernardino
Approved as to Form:
27 By: ~ff-
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Exhibit A
Neighborhood Housing Services of the Inland Empire C'NHSIE")
Single-Family Residence Beautification Grant Program Agreement
CDC/2010-43
REDEVELOPMENT AGENCY OF THE CITY OF
SAN BERNARDINO
SINGLE F AMIL Y RESIDENCE BEAUTIFICATION GRANT PROGRAM AGREEMENT
(Low-Moderate Housing Fund)
THIS SINGLE F AMIL Y BEAUTIFICATION GRANT PROGRAM AGREEMENT (the
"Agreement") is made and entered into this 2nd day of August, 2010 (the "Effective Date"), by
and between the NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE, INC.,
a California non-profit corporation (the "Contractor") and the REDEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO (the "Agency"), a public body, corporate and politic.
The Agency and the Contractor agree as follows:
RECITALS
WHEREAS, the Agency administers a beautification grant program which grants funds
(the "Program") to low-moderate income homeowners who reside in the City of San Bernardino
(the "City"), in the County of San Bernardino (the "County"), in the State of California (the
"State") to permit such homeowners to undertake certain housing rehabilitation and correction
work, including, without limitation, asbestos and lead containing materials abatement work,
handicap accessibility improvements and utility energy improvements to one family dwellings
owned and occupied by such low-moderate homeowners; and
WHEREAS, the Agency desires to execute a three (3) year agreement with the
Contractor, renewable annually by the Agency as provided herein assuming appropriation by the
United States Department of Housing and Urban Development ("HUD"); and
WHEREAS, the Agency desires to allocate an amount not to exceed the sum of Six
Hundred Eighty-Two Thousand Five Hundred Dollars ($682,500) annually of Low-Moderate
Housing Funds, in accordance with the terms, covenants and conditions of this Agreement,
which amount may be increased by the Agency as set out herein in the event the minimum
number of required Grants may be exceeded by the Contractor for any given year; and
WHEREAS, the Program promotes and expands the supply of affordable housing in the
City and fosters the elimination and prevention of blight;
NOW, THEREFORE, IN CONSIDERATION OF THE RECITALS MENTIONED
ABOVE, THE MUTUAL PROMISES OF THE AGENCY AND OF THE CONTRACTOR IN
THIS AGREEMENT AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE
RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY ACKNOWLEDGED BY THE
AGENCY AND BY THE CONTRACTOR, THE AGENCY AND THE CONTRACTOR
AGREE AS FOLLOWS:
Section 1. DEFINITIONS OF CERTAIN TERMS. In addition to the words and
phrases, which are defined in the Recitals of this Agreement and/or in this Agreement, the
following words and terms shall have the meaning set forth below:
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"County Recorder's Office" means and refers to the County Recorder's Office for the
County of San Bernardino, State of California.
"Environmental Laws" mean and refer to all applicable federal, state, municipal and local
laws, statutes, codes, ordinances, rules, regulations, orders and judgments relating to the
protection or clean-up of the environment, the use, treatment, storage, transportation,
generation, manufacture, processing, distribution, handling or disposal of, or emission,
discharge or other release or threatened release of hazardous substances, the preservation
or protection of waterways, groundwater, drinking water, air, wildlife, plants or other
natural resources, the health and safety of persons, or the protection of the health and
safety of employees, now or hereafter existing, as the same may be amended, modified or
supplemented from time to time, including, without limitation: the Clean Air Act, as
amended, 42 D.S.C. Section 7401 et seq.; the Federal Water Pollution Control Act, as
amended, 33 D.S.C. Section 1251 et seq.; the Resource Conservation and Recovery Act
of 1976, as amended, 42 D.S.C. Section 6901 et seq.; the Comprehensive Environment
Response, Compensation and Liability Act of 1980, as amended (including the Superfund
Amendments and Reauthorization Act of 1986, "CERCLA"), 42 D.S.C. Section 9601 et
seq.; the Toxic Substances Control Act, as amended, 15 U.S.C. Section 2601 et seq.; the
Occupational Safety and Health Act, as amended, 29 U.S.C. Section 651, the Emergency
Planning and Community Right-to-Know Act of 1986,42 U.S.c. Section 11001 et seq.;
the Safe Drinking Water Act, as amended, 42 D.S.C. Section 300f et seq.; the California
Health and Safety Code (Section 25100 et seq., Section 25249.5 et seq., Section 39000 et
seq.); the California Water Code (Section 13000 et seq.); the California Environmental
Quality Act ("CEQA"); the California Public Resources Code; all comparable state and
local laws, laws of other jurisdictions or orders and regulations; and any and all common
law requirements, rules and bases of liability regulating, relating to or imposing liability
or standards of conduct concerning pollution or protection of human health or the
environment, as now or may at any time hereafter be in effect.
"Executive Director" means and refers to the Interim Executive Director of the Agency
and his or her authorized representatives, or designees.
"General Contractor Agreement" means and refers to the Single Family Beautification
Grant Program General Contractor Agreement by and between the Qualified Homeowner
and the contractor identified therein (the "General Contractor") as approved, in writing,
by the Contractor. The General Contractor Agreement relates, without limitation, to the
construction, the installation and the completion by the General Contractor of the Work
described in the General Contractor Agreement. The General Contractor Agreement
shall be executed by and between the Qualified Homeowner and the General Contractor
and shall be accepted, in writing, by the Contractor. The General Contractor Agreement
shall be substantially similar to the General Contractor Agreement attached hereto and
incorporated herein by this reference as "Exhibit "B".
"Grant" means and refers to each grant transaction approved, granted and made by the
Agency to or for the benefit of the Qualified Homeowner in accordance with this
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Agreement. Each Grant made by the Agency to the Qualified Homeowner may not
exceed Ten Thousand Dollars ($10,000); provided, however, in connection with a Grant
in the amount of $10,000 made by the Agency to the Qualified Homeowner, for every
dollar paid by the Qualified Homeowner in excess of the $10,000 Grant Funds amount
that has been disbursed by the Agency and paid to the General Contractor or to any sub-
contactors in accordance with the Program to complete the Improvements, the Agency
shall provide a dollar-for-dollar match not to exceed an additional Five Thousand Dollars
($5,000), in the aggregate. In no event shall the Grant Funds paid by the Agency for the
benefit of the Qualified Homeowner to complete the Improvements in connection with
the Home exceed Fifteen Thousand Dollars ($15,000), in the aggregate, without the prior
written approval of the Executive Director. The Qualified Homeowner shall pay all
amounts that exceed the Grant Funds paid by the Agency for the benefit of the Qualified
Homeowner under the Program to enable the Qualified Homeowner to complete the
Improvements in connection with the Qualified Homeowner's Home. For each year
during the term of this Agreement, the Contractor will attempt to approve, complete,
process and finalize sixty-five (65) Grants in the Target Area.
"Grant Application" means and refers to the Single Family Beautification Grant Program
Application as fully completed and executed by the Qualified Homeowner. The Grant
Application shall be submitted by the Qualified Homeowner to the Contractor and the
Contractor shall verify that the Grant Application is complete. Each Grant Application
shall contain the information relating to the Qualified Homeowner and the proposed use
of the Grant Funds by the Qualified Homeowner together with a current preliminary title
report or other proof of title acceptable to the Agency for the Home. The Contractor shall
require all Qualified Homeowners to complete the Grant Application substantially similar
to the Grant Application attached hereto and incorporated by reference as Exhibit "D."
"Grant Disbursement Account" means and refers to a separate custodial deposit account,
which the Contractor shall establish with an FDIC-insured depository institution for the
receipt and disbursement of the Grant Funds in connection with the approval, granting
and making by the Agency to the Qualified Homeowner of the Grant under the Program
in accordance with this Agreement. Such deposit account agreement among the
Contractor, the Agency and such depository institution shall be in a form and substance
as reasonably satisfactory to the Agency. The Contractor shall create and maintain a
separate Grant Disbursement Account for each Grant approved, granted and made by the
Agency for the benefit of each Qualified Homeowner. No other funds of the Contractor
shall be deposited or co-mingled in the Grant Disbursement Account. The Contractor
shall serve as the trustee of the Agency in the administration of all of the Grant Funds or
deposit in each Grant Disbursement Account, including any interest as may accrue
thereon.
"Grant Documents" mean and refer to the following: (i) the Grant Application, (ii) the
Maintenance Grant Needs Document, (iii) the Grant Disclosure, (iv) the Grant Services
Agreement, (v) the Maintenance Covenant Agreement, (vi) the Homeowner's Release
and Waiver, and (vii) this Agreement and such other agreements, documents, instruments
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and/or certifications relating to or in connection with the Grant to the Qualified
Homeowner, the Grant Funds and/or the Grant Disbursement Account.
"Grant Funds" mean and refer to the funds delivered by the Agency to or for the benefit
of a Qualified Homeowner in connection with the Grant that the Agency has approved
and granted to the Qualified Homeowner in accordance with this Agreement. Each Grant
made by the Agency to the Qualified Homeowner may not exceed Ten Thousand Dollars
($10,000); provided, however, in connection with a Grant in the amount of $10,000 made
by the Agency to the Qualified Homeowner, for every dollar paid by the Qualified
Homeowner in excess of the $10,000 Grant Funds amount that has been disbursed by the
Agency and paid to the General Contractor or to any subcontactors in accordance with
the Program to complete the Improvements, the Agency shall provide a dollar-for-dollar
match not to exceed an additional Five Thousand Dollars ($5,000), in the aggregate. In
no event shall the Grant Funds paid by the Agency for the benefit of the Qualified
Homeowner to complete and perform the Improvements in connection with the Qualified
Homeowner's Home exceed Fifteen Thousand Dollars ($15,000), in the aggregate,
without the prior written approval of the Executive Director. The Qualified Homeowner
shall timely pay all amounts that exceed the Grant Funds paid by the Agency to or for the
benefit of the Qualified Homeowner under the Program in order to construct, install,
perform and/or complete the Improvements in connection with the Qualified
Homeowner's Home.
"Grant Services Agreement" means and refers to the Single Family Beautification Grant
Program Grant Services Agreement by and between the Qualified Homeowner and the
Contractor. The Grant Services Agreement, without limitation, notifies the Qualified
Homeowner that the Agency has awarded the Grant to the Qualified Homeowner, restates
and certifies the Program qualifications and guidelines, identifies the role of the
Contractor and restates the Qualified Homeowner's duties and responsibilities under the
Program. The Grant Services Agreement must be executed by the Qualified Homeowner
and by the Contractor and must be substantially similar to the Grant Services Agreement
attached hereto and incorporated herein by this reference as Exhibit "E".
"Hazardous Substances" mean and refer to any pollutant, contaminant, waste and any
toxic, carcinogenic, reactive, corrosive, ignitable, flammable or infectious chemical,
chemical compound or substance or otherwise hazardous wastes, toxic or contaminated
substances or similar materials, including, without limitation, any quantity of asbestos,
urea formaldehyde, PCBs, radon gas, lead, lead-based paint, crude oil or any fraction
thereof, all forms of natural gas, petroleum products, by-products or derivatives,
radioactive substances, methane, hydrogen sulfide or materials, pesticides, waste waters,
or sludges, any of the above of which are subject to regulation, control or remediation
under any Environmental Laws.
"Home" means and refers to the land and a one family dwelling located in the Target
Area, owned by the Qualified Homeowner and resided in by the Qualified Homeowner as
its principal residence. For purposes of this Agreement, a Home shall not include any
duplex, triplex or four-plex dwelling located in the Target Area.
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"Homeowner's Release and Waiver" means and refers to the Homeowner's Release and
Waiver, as executed by the Qualified Homeowner and the Contractor. The Homeowner's
Release and Waiver provides, without limitation, that the Contractor shall be permitted to
display yard signs at the Qualified Homeowner's Home and that the Contractor shall be
permitted to photograph or videotape the Qualified Homeowner's Home. The
Homeowner's Release and Waiver shall be substantially similar to the Homeowner's
Release and Waiver attached hereto and incorporated herein by this reference as Exhibit
"F"".
"Improvements" mean and refer to the following types of eligible improvements
(primarily for non-health and safety code violations) to the Qualified Homeowner's
Home that will be permitted under the Program: (i) window and front door replacement,
(ii) driveway repairs, replacements or enhancements, (iii) garage door replacement, (iv)
exterior painting, (v) drought tolerant landscaping including automatic sprinklers, grass
seed, and planting materials (front yard only), (vi) replacement of existing fence with
wrought iron, vinyl, wood or block fencing (front yard only), (vii) parkway
enhancements such as stamped concrete, trees and landscape plantings, (viii) any roof
repairs or replacement, or (ix) any sewer repairs or sewer installation (the "Sewer
Repairs"). In connection with each Grant Application for Sewer Repairs, the Agency
shall have the right to determine whether or not such Sewer Repairs shall be made from
funds disbursed by the Agency from Grant Funds under the Program or from loan
proceeds disbursed by the Agency to an applicant under the Single Family Residence
Rehabilitation Loan Program, or under any other then existing loan program. Should the
Agency determine that the Sewer Repairs will need to be disbursed by the Agency from
loan proceeds pursuant to the Single Family Residence Rehabilitation Loan Program, or
any other then existing loan program, the Contractor shall advise the applicant, in writing,
that the applicant will need to prepare, to execute and to submit a new loan application to
the Contractor under the Single Family Residence Rehabilitation Loan Program, or under
any other then existing loan program, which loan application, without limitation, shall
request the Agency to make a loan to the applicant to permit the applicant to make and to
complete the Sewer Repairs.
"Laws" mean and refer to all federal, state, municipal and local laws, statutes, codes,
ordinances, regulations, rules, orders or judgments, now or hereafter in effect, as
amended from time to time, including, without limitation, the Environmental Laws, all
applicable building, plumbing, mechanical, electrical and health and safety codes and
City ordinances.
"Lead Based Paint Acknowledgment" means and refers to the "Lead Based Paint
Acknowledgment of Receipt" as executed by the Qualified Homeowner and the General
Contractor. The Lead Based Paint Acknowledgment acknowledges receipt by the
Qualified Homeowner of the Lead Based Paint Pamphlet from the General Contractor.
The Lead Based Paint Acknowledgment is attached hereto and incorporated herein by
this reference as Exhibit "G".
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"Lead Based Paint Disclosure" means and refers to the "Lead Based Paint Disclosure" by
and between the Qualified Homeowner and the General Contractor. The Lead Based
Paint Disclosure is to be executed by the General Contractor and by the Qualified
Homeowner and is attached hereto and incorporated herein by this reference as Exhibit
"H" .
"Low-Moderate Income Housing Funds" mean and refer to the Low-Moderate Income
Housing Funds that the Agency intends to use to make the Grant to or for the benefit of
the Qualified Homeowner in accordance with this Agreement and with Health and Safety
Code Section 33334.3 et seq. The Agency and the Contractor will offer the Grant to a
Qualified Homeowner who earns not more than 120% of the current annual median
income for the San Bernardino County area, adjusted for family size (as those terms are
defined by California Health and Safety Code Section 50053.5) as further illustrated in
Exhibit "A" of this Agreement (the "2010 Income Limits") and are subject to annual
adjustments.
"Maintenance Covenant Agreement" means and refers to the "Residential Property
Maintenance Agreement Containing Covenants Affecting Real Property (Single Family
Beautification Grant Program) by and between the Agency and the Qualified
Homeowner. The Maintenance Covenant Agreement provides, without limitation, for
maintenance-related duties and obligations to be performed and completed by the
Qualified Homeowner in connection with the Qualified Homeowner's Home. The
Maintenance Covenant Agreement shall be executed and acknowledged by and between
the Agency and the Qualified Homeowner, and must be in recordable form for
recordation by the Contractor or by the Agency in the County Recorder's Office. The
Maintenance Covenant Agreement must be substantially similar to the Maintenance
Covenant Agreement attached hereto and incorporated herein by this reference as Exhibit
"I" .
"Maintenance Class" means and refers to the maintenance class provided by the
Contractor pursuant to the Homebuyer Education Program Agreement, dated as of
August 2nd, 2010, by and between the Agency and the Contractor. The Qualified
Homeowner is required to attend the Maintenance Class after the Agency has approved
the Grant to a Qualified Homeowner. In the Maintenance Class, the Qualified
Homeowner shall learn, without limitation, to properly maintain the Qualified
Homeowner's Home and/or the Improvements to be constructed, installed, performed and
completed thereon.
"Maintenance Grant Needs Document" means and refers to the Maintenance Grant Needs
Document, as fully completed and executed by the Qualified Homeowner in connection
with the Program. The Maintenance Grant Needs Document is attached hereto and
incorporated herein by this reference as Exhibit "J".
"Program" means and refers to the program created, administered and maintained by or
for the Agency in connection with the Grant, the disbursement by the Agency to the
Contractor of the Grant Funds to or for the benefit of each Qualified Homeowner in
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accordance with this Agreement and the performance and completion by the Contractor
of the Services. The Contractor shall offer the Program to Qualified Homeowners in the
specific Target Area as designated in Exhibit "K" (the "Target Area") during the term of
this Agreement. The Contractor shall offer the Program on an as-needed, first-come,
first-served basis, to Qualified Homeowners in the Target Area within the City for the
term of this Agreement. However, in case of an emergency, of an urgent need or of a
life-threatening situation, the Contractor may process a Grant Application ahead of other
Grant Applications subject to the approval by the Executive Director.
"Proiect" means and refers to the construction, the installation and/or to the completion of
the Improvements from the use of the Grant Funds and of the Loan Improvements from
the use of the Loan Funds.
"Qualified Homeowner" means and refers to: (i) a person or household which owns and
occupies its Home as its principal residence within the City or within the Target Area for
at least twelve (12) continuous months preceding the date of submission of its Grant
Application and its Maintenance Needs Application Document to the Contractor, (ii) has
a personal or household income level, adjusted for family size, during the twelve (12)
months preceding the date of submission of its Grant Application and its Maintenance
Needs Application Document to the Contractor within the ranges of income for low-
moderate income households, adjusted for family size, as set forth in Exhibit "A", (iii)
must complete, execute and submit the Grant Application and the Maintenance Needs
Application Document to the Contractor, (iv) must agree to attend the Maintenance Class
conducted by the Contractor, (v) must agree to live in its Home, as its principal residence,
for not less than five (5) years after the recordation of the Maintenance Covenant
Agreement in the County Recorder's Office, (vi) must execute and acknowledge, where
appropriate, all Grant Documents, and (vii) must agree to maintain the Home pursuant to
the Maintenance Covenant Agreement for a period of ten (10) years following the
recordation of such Maintenance Covenant Agreement in the County Recorder's Office.
On a case-by-case basis, the Executive Director of the Agency, in its sole and absolute
discretion, may waive this one (1) year residency requirement.
"Services" mean and refer, without limitation, to the Program origination, the
preparation, execution and delivery of the Grant Documents, the Grant Fund
disbursement control, related accounting, Work monitor (course of construction builder
contract) services and other services to be provided by the Contractor to or for the benefit
of the Agency in accordance with this Agreement. The various elements of the Services
are more fully set forth in the "Scope of Services" attached hereto as Exhibit "C." For
each year of the Agreement, the Contractor will attempt to approve, complete, process
and finalize sixty-five (65) Grants to Qualified Homeowners in the Target Area.
"Target Area" means and refers to the specific area, areas, neighborhood or
neighborhoods in the City, as designated in Exhibit "K", in which the Agency has
instructed the Contractor to offer the Program to Qualified Homeowners to better
maximize the effectiveness of the Grant Funds.
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In the absence of specific direction from the Executive Director of the Agency, the
Contractor shall offer the Program on an as-needed, first-come, first-served basis, to
Qualified Homeowners within the Target Area. However, in the case of an emergency,
of an urgent need or of a life-threatening situation, the Contractor may process a Grant
Application ahead of other Grant Applications subject to the approval of the Executive
Director.
"Work" means and refers, without limitation, to the Improvements, or any part thereof, to
be constructed, installed, performed and/or completed by a state-licensed General
Contractor on each Home pursuant to the terms, covenants and conditions of the General
Contractor Agreement. Only the Improvements and/or the items of Work set forth in the
General Contractor Agreement shall be authorized for payment by the Contractor, up to
the maximum amount authorized under the terms of the Program for such Improvements,
or any part thereof. Any costs of Improvements and/or of Work in excess of the
maximum amount of the Program (which are not the fault of such General Contractor)
shall be paid for by the Qualified Homeowner unless approved in writing by the
Executive Director.
Section 2. PERFORMANCE BY CONTRACTOR AND BY AGENCY. The
Contractor and the Agency agree to perform the terms, covenants and conditions of this
Agreement.
Section 3. SCOPE OF SERVICES. The Contractor agrees to provide the Services
to the Agency as set forth herein and as described in the Scope of Services attached hereto as
Exhibit "C" for the Program. Promptly following the date of approval of this Agreement by the
governing board of the Agency, the Contractor, without limitation, shall or will continue to:
(A) cause the Grant Disbursement Account to be established, or maintained, and the
general form of an FDIC - insured deposit account agreement acceptable to the Agency to
be fully executed by the Contractor, by the depository institution and by the Agency
within thirty (30) calendar days following the date of approval of this Agreement;
(B) continue to use the general form of the Grant Application in connection with an
application by a Qualified Homeowner for the approval by the Agency to the Qualified
Homeowner of the Grant under the Program in accordance with this Agreement. The
applicant for the Grant must submit to the Contractor federal and state income tax returns
filed by the applicant with the appropriate taxing authorities for the past two (2) years
which tax returns must be acceptable to the Contractor in its sole and absolute discretion;
(C) subject to the completion of the tasks described in Section 3(A) and in Section
3(B) above, continue the process of receiving and reviewing Grant Applications and
provide the Services as provided for in the Agreement. The Contractor shall offer the
Program to Qualified Homeowners in the Target Area on an as needed, first-come, first-
served basis; provided, however, in the case of an emergency, of an urgent need or of a
life-threatening situation, the Contractor may process a Grant Application ahead of other
Grant Applications subject to the approval of the Executive Director;
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(D) transmit a copy of a completed set of the Grant Documents to the Executive
Director of the Agency, together with: (i) a recommendation from the Contractor to the
Agency to approve the Grant Application and the Grant to the Qualified Homeowner, and
(ii) a request from the Contractor to the Agency for a transfer of the Grant Funds by the
Agency for the account of the Qualified Homeowner. The Executive Director shall either
authorize the funding of such Grant or reject the request for funding on behalf of the
Agency within ten (10) business days of receipt from the Contractor. Any rejection of a
Grant Application shall be in writing and shall state the reasons for such action. Each
acceptance of a Grant Application by the Agency shall be evidenced by the signature of
the Executive Director of the Grant Documents, where designated. All Grant Documents
shall be executed, acknowledged, where designated, and completed by the Qualified
Homeowner and by the Contractor, and the disbursement of Grant Funds by the Agency
to or for the benefit of the Qualified Homeowner shall occur within sixty (60) calendar
days following the date of submission by the Contractor to the Executive Director of the
funding request, or the Grant Documents shall be of no further force or effect;
(E) no fees, charges or expenses shall be payable by any applicant to the Contractor
or to the Agency for a Grant, except from the Grant Funds, nor shall the Contractor
charge a Qualified Homeowner for any cost or service in connection with the origination
or subsequent administration of the Grant during the time the Improvements and/or the
Work is constructed, installed, performed and/or completed at the Home, except for the
Maintenance Class fee, or as authorized under the Program by the Executive Director;
(F) instruct the Executive Director to transfer the Grant Funds for the account of each
Qualified Homeowner to the Grant Disbursement Account as set forth in Section 3(D),
above, upon confirmation by the Contractor that the Grant Documents for the Program
are executed and complete and the Maintenance Covenant Agreement (and any other
documents to be recorded in the County Recorder's Office) are ready for recordation;
(G) deliver a fully executed and acknowledged, where designated, original set of the
Grant Documents for each Grant (except for the Maintenance Covenant Agreement
which shall be recorded by the Contractor on behalf of the Agency in the County
Recorder's Office) to the Agency upon request of funding and transfer of the Grant Funds
for the account of the Qualified Homeowner to the Grant Disbursement Account;
(H) verify that no Grant Funds are disbursed from the Grant Disbursement Account
for the account of a Qualified Homeowner except: (i) to pay a state-licensed General
Contractor and/or state-licensed subcontractor for the Improvements and/or for the Work
constructed, installed, performed and/or completed at the Home pursuant to the General
Contractor Agreement (less a ten percent (10%) retention pending completion of the
Improvements and/or of the Work and final executed written release of all mechanics and
materials liens from the General Contractor and/or from all subcontractors). No
disbursement of the Grant Funds from the Grant Disbursement Account shall be
authorized for any building materials or equipment items which are not physically
delivered at the Home before the date of payment of such Grant Funds to the General
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Contractor and/or to the subcontractor or (ii) to pay a Grant title fee or cost amount
expressly authorized in writing by the Executive Director;
(I) prepare and maintain a Grant Funds disbursement ledger for all payments
authorized and made by the Contractor to the General Contractors and/or to the
subcontractors for the account and debit to each Qualified Homeowner under each Grant
made by the Agency to or for the benefit of the Qualified Homeowner in accordance with
this Agreement. Such ledger shall show each payment by date and reference the
particular Grant, Grant Documents and name of the Qualified Homeowner to which it
corresponds. Such ledger shall also include a monthly starting and ending balance for the
Grant Disbursement Account, a final reconciliation of the adjusted balance of each Grant
upon the completion of the Improvements and/or of the Work, and such other accounting
information as the Executive Director may request. A copy of such ledger shall be
submitted to the Executive Director each month with the first such monthly submittal due
on the first day of the next month following the date of the initial deposit of the Grant
Funds by the Contractor and/or by the Agency into the Grant Disbursement Account;
(1) No Improvements and/or Work shall be authorized for payment by the Contractor
unless the Grant Documents are complete and the Contractor has received a fully
executed copy of the General Contractor Agreement by and between the General
Contractor and the Qualified Homeowner. Once the Improvements and/or the Work has
commenced on a particular Home, neither the Qualified Homeowner, the General
Contractor nor the subcontractor shall authorize an amendment or modification of such
contract to include any item of Work, which is not eligible for payment using the Grant
Funds under the terms and conditions of the Grant under the Program. Each such
contract by and between the General Contractor and the Qualified Homeowner, the
General Contractor and the subcontractor, and/or the subcontractor and the Qualified
Homeowner shall include a section, which recites the words of the first two (2) sentences
of this Section 3(1).
Section 4. TIME OF PERFORMANCE OF SERVICES. The Services to be
performed hereunder by the Contractor shall be undertaken and completed in such sequence as to
assure expeditious completion and to best carry out the purposes of the Program and this
Agreement. All Services required hereunder shall begin upon the execution of this Agreement.
Section 5. TERM OF AGREEMENT. This Agreement shall take effect upon
approval by the governing board of the Agency and the complete execution by the parties. The
term of this Agreement shall be for three (3) years from the Effective Date through June 30th,
2013; provided, however, that each year as part of the Agency's budget process, Agency staff
shall review the Contractor's performance under this Agreement, including, but not limited to
whether goals have been met as shown by the quarterly updates. In the event the Agency
determines that the Contractor's goals need to be modified as set out in this Agreement, the
Agency may modify the goals and compensation therefore. Notwithstanding, in the event that
HUD terminates or reduces funding for this program, this Agreement may be adjusted or
terminated accordingly. Any increase in goals or funding is subject to Section 6(C) below.
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Section 6.
COMPENSA TION PAYABLE BY AGENCY TO CONTRACTOR.
(A) The Agency shall annually compensate the Contractor for the performance of the
Services using the Low-Moderate Income Housing Funds in accordance with the following
schedule:
15% of the Grant Funds
disbursed by the Contractor
not to exceed an annual
amount of$102,375
Annual Program Administration Fee for
CONTRACTOR
$682,500
Beautification Grant Program
$784.875
(B) From and after the Effective Date of this Agreement and for the remaining term of
this Agreement, the Program Administration Fee payable by the Agency to the Contractor as
compensation for Services performed by the Contractor under this Agreement shall be paid by
the Agency directly to the Contractor upon receipt by the Agency of a corrected invoice and the
Grant Funds disbursement ledger (the "Grant Funds Disbursement Ledger") which shows all
Grant Fund payments authorized by the Agency and disbursed by the Contractor to the General
Contractors and/or to the subcontractors under this Agreement for which the Contractor has not
been paid by the Agency. The Contractor may not invoice the Agency more than once per
month for the Grant Funds disbursed by the Contractor under this Agreement and the Agency
shall pay to the Contractor the correct amount identified on the invoice within thirty (30)
calendar days after the receipt by the Agency of the following: (i) a corrected invoice, and (ii)
the Grant Funds Disbursement Ledger. The Program Administration Fee shall be 15% of the
Grant Funds disbursed by the Contractor under this Agreement and shall not exceed One
Hundred Two Thousand Three Hundred Seventy-Five Dollars ($102,375), in the aggregate, for
any gIven year.
(C) Notwithstanding the foregoing, in the event the Contractor has the opportunity to
exceed sixty-five (65) Grants in any given year, additional Grant Funds would need to be
procured in order to fund any additional Grants made by the Contractor under this Agreement.
The Agency will exercise its reasonable efforts to amend this Agreement, in writing, and to
obtain additional Grant Funds to fund additional Grants, in excess of sixty-five (65) Grants, by
the Contractor for that year. The Agency makes no warranty, no representation and no covenant
to the Contractor that the Agency will be able to obtain any additional Grant Funds to fund any
additional Grants under this Agreement.
Section 7. PERSONNEL OF CONTRACTOR. The Contractor represents that it
has, or will secure at its own expense, all personnel required to perform the Services. All of the
Services required hereunder will be performed by persons who are either employed by or under
the supervision and control of the Contractor, and all personnel engaged in the Services shall be
competent and fully qualified to perform such Services.
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Section 8. INDEPENDENT CONTRACTOR. All acts of the Contractor and all
others acting on behalf of the Contractor relating to the performance of this Agreement, shall be
performed as independent contractors and not as agents, officers, or employees of the Agency.
The Contractor has no authority to bind or incur any obligation on behalf of the Agency. The
Contractor has no authority or responsibility to exercise any right or power vested in the Agency.
No agent, officer, or employee of the Agency shall be considered an agent or employee of the
Contractor. It is understood by both the Contractor and the Agency that this Agreement shall not
under any circumstance be construed or considered to create an employer-employee relationship
or a joint venture as between the Contractor and the Agency. The Contractor is and at all times
during the Term of this Agreement shall represent and conduct itself as an independent
contractor and not as an agent or employee of the Agency. The Contractor shall be responsible
to the Agency only for the requirements and results specified in this Agreement, and except as
expressly provided in this Agreement, shall not be subject to control by the Agency with respect
to the physical action or activities of the Contractor in fulfillment of this Agreement. The
Contractor has control over the manner and means of performing the Services under this
Agreement so long as consistent with the requirements of the Program. The Contractor is
permitted to provide services to others during the same period Services are provided to the
Agency under this Agreement. If necessary, the Contractor has the responsibility for employing
other persons or firms to assist the Contractor in fulfilling the terms and obligations under this
Agreement. If in the performance of this Agreement any third persons are retained as
subcontractors by the Contractor, such persons shall be entirely and exclusively under the
direction, supervision, and control of the Contractor. All terms of employment including hours,
wages, working conditions, discipline, hiring, and discharging or any other term of employment
or requirements of law shall be determined by the Contractor. The Contractor hereby agrees to
indemnify, defend (if requested by Agency), protect and hold the Agency harmless from any and
all claims that may be made against the Agency or based upon any contention by any employee
of the Contractor or by any third party that an employer-employee relationship or joint venture
exists between any person or entity and the Agency, by reason of the performance of any of the
Services under this Agreement.
Section 9. PAYMENT OF AND TRANSFER OF GRANT FUNDS TO GRANT
DISBURSEMENT ACCOUNT. The Agency shall promptly honor each request by the
Contractor for the Agency to transfer Grant Funds to the Contractor who will in turn deposit the
Grant Funds to the Grant Disbursement Account to fund each approved Grant as submitted by
the Contractor to the Agency under Section 3(D). Within sixty (60) calendar days following
receipt of each request for remittance of the Grant Funds, the Agency shall transfer by bank
check to the Contractor such Grant Funds to use as provided herein.
Section 10. COMMERCIAL GENERAL LIABILITY INSURANCE.
AUTOMOBILE INSURANCE. WORKERS' COMPENSATION INSURANCE.
EMPLOYER'S LIABILITY INSURANCE. ERRORS AND OMISSIONS AND
PROFESSIONAL LIABILITY INSURANCE.
(A) The Contractor shall obtain and keep in force during the term of this Agreement,
at its sole cost and expense, the following insurance policies: (i) a commercial general liability
policy of insurance with coverage at least as broad as "Insurance Services Office Commercial
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General Liability Form (GOOOl)", in the amount of One Million Dollars ($1,000,000) combined
single limit per occurrence, naming the Agency and the City and the elected officials, officers,
employees, attorneys and agents of each of them as additional insureds (collectively, the
"Additional Insureds") with said insurance covering comprehensive general liability including,
but not limited to, contractual liability, assumed contractual liability under this Agreement, acts
of subcontractors, premises-operations, explosion, collapse and underground hazards, if
applicable, broad form property damage, and personal injury including libel, slander and false
arrest, (ii) comprehensive automobile liability insurance covering owned, non-owned and hired
vehicles by or for the Contractor, combined single limit in the amount of One Million Dollars
($1,000,000) per occurrence, naming the Additional Insureds as additional insureds on each
automobile insurance policy, (iii) workers' compensation insurance in such insurance coverage
amounts as statutorily required, or similar insurance in form and amounts required by law, and
employer's liability insurance, combined single limit in the amount of One Million Dollars
($1,000,000), and (iv) errors and omissions and professional liability, combined single limit in
the amount of One Million Dollars ($1,000,000) per occurrence.
(B) Any and all insurance policies required hereunder shall be obtained from
insurance companies admitted in the State of California and rated at least A: XII in the most
current Best's Key Rating Insurance Guide. In no event shall the Contractor be permitted or
entitled to assign to any third party rights of action which the Contractor may have against the
Agency. All said insurance policies shall provide that they may not be canceled unless the
Agency and the City receive written notice of cancellation at least thirty (30) calendar days prior
to the effective date of cancellation. Any and all insurance obtained by the Contractor shall be
primary to and shall not be contributing with any insurance carried by the Agency or by the City
whose insurance shall be considered excess insurance only. Any insurance which the Agency
and/or City may otherwise carry, including self insurance, for all purposes of this Agreement
shall be separate and apart from the requirements of this Agreement. Legal counsel for the
Agency must approve each insurance policy required in Section 10(A) of this Agreement. The
Contractor waives subrogation and agrees that the Contractor, the Agency and the City are co-
insured. The insurer shall have no right of subrogation against the Agency, against the City or
against any of the other Additional Insureds. The Additional Insureds shall be named as
additional insureds on each insurance policy.
(C) All insurance which the Contractor shall carry or maintain pursuant to this Section
10 shall be in such form, for such amounts, for such periods of time as the Agency may require
or approve.
(D) The Contractor shall deliver or cause to be delivered to the Agency conculTently
upon the execution of this Agreement an endorsement of the insurance policies required in this
Section 10(A) of this Agreement evidencing the existence of the insurance coverage required by
the Agency under Section 10(A) of this Agreement and shall also deliver, no later than thirty
(30) calendar days prior to the expiration of any insurance policy, a certificate of insurance
evidencing each renewal policy covering the same risks. The Agency may request the
Contractor to provide, and the Contractor shall immediately provide, additional or greater
insurance coverage, in such amounts and with such deductibles as reasonably determined by the
Agency, at the cost and the expense ofthe Contractor.
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Section 11. INDEMNIFICATION.
(A) The Contractor agrees to indemnify, defend with legal counsel reasonably
acceptable to the Agency, protect and hold the City and the Agency, and their respective elected
officials, directors, officers, members, managers, consultants, contractors, employees, agents and
attorneys, and the successors and assigns of each of them (singularly and collectively, the
"Indemnified Parties" which defined term shall also includes the City and the Agency), harmless
from and against all actions, causes of action, claims, demands, liabilities, damages, losses,
liabilities, obligations, judgments, suits, costs, expenses and fees (including, without limitation,
reasonable attorneys' fees, court costs and expert fees of any nature whatsoever), now or
hereafter arising from or related to: (i) any act or omission of the Contractor and/or of any of the
Contractor's directors, officers, members, managers, consultants, contractors, subcontractors,
materialmen, laborers, any other person or entity furnishing or supplying work, services, goods,
or supplies in connection with the performance of this Agreement, employees and agents, and the
successors and/or assigns of each of them (singularly and collectively, the "Indemnifying
Parties" which defined term shall also include the Contractor), in performing, or failing to
perform, its obligations hereunder, (ii) any default by the Contractor under this Agreement,
subject to any applicable cure period, (iii) any violation by any of the Indemnifying Parties of
any Laws, (iv) any warranty or representation made by the Contractor to the Agency in this
Agreement that is or becomes false and untrue, (v) death, bodily injury and/or personal injury to
any person, (vi) any destruction, loss or damage to real property or personal property, (vii) the
presence of any Hazardous Substances at, on, in, above, under or about any Home owned by a
Qualified Homeowner resulting, directly or indirectly, from the acts or omissions of any
Indemnifying Parties, and/or (viii) the aggravation of any environmental condition by any
Indemnifying Parties at, on, in, above, under or about any Home owned by a Qualified
Homeowner. Without limiting the Contractor's indemnification of the Indemnified Parties, the
Contractor shall provide and maintain, at its sole cost and expense during the term of this
Agreement, the insurance described in Section IO(A) of this Agreement. Such insurance shall be
provided by insurer(s) satisfactory to the Agency and evidence of such insurance satisfactory to
the Agency shall be delivered to the Executive Director no later than the Effective Date of this
Agreement.
(B) The Agency shall indemnify, defend (if requested by the Contractor) and hold
harmless the Contractor, its agents, officers, and employees, from all claims, loss, demands and
liability for damages for personal injury, bodily injury or property damage suffered by reason of
any act or omission of the Agency or any of its officers or employees or agents under this
Agreement except where such action or omission giving rise to such a claim is caused by or is
the result of an action, omission or request of the Contractor and/or of any of the other
Indemnifying Parties, or is alleged to arise out of the execution of this Agreement. The
provisions of Section II(A) and Section 11(B) shall survive the execution, delivery,
performance, expiration or early termination ofthis Agreement.
Section 12. DEFAULTS AND BREACH - GENERAL. The failure or delay by
either party to perform any material term or provision of this Agreement shall constitute a default
hereunder; provided, however, that if the party who is otherwise claimed to be in default by the
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other party commences to cure, correct or remedy the alleged default within thirty (30) calendar
days after receipt of written notice specifying such default and shall diligently complete such
cure, correction or remedy, such party shall not be deemed to be in default hereunder. A default
shall also occur under this Agreement whenever a representation and/or warranty made in this
Agreement is or becomes false or untrue. A default shall also occur under this Agreement
whenever a party files, or has filed against it, a petition in bankruptcy, is or becomes insolvent, is
unable to pay its debts as they come due, assigns its assets for the benefit of creditors, or a
receiver, trustee or custodian is appointed by a court to exercise control over all or substantially
all of the assets of the party and such receiver, trustee or custodian is not discharged by the court
within sixty (60) calendar days after said appointment date. The party which may claim that a
default has occurred shall give written notice of default to the party in default specifying the
alleged default. Delay in giving such notice shall not constitute a waiver of any default nor shall
it change the time of default; provided, however, the injured party shall have no right to exercise
any remedy for a default hereunder without delivering the written default notice as specified
herein. Any failure or delay by a party in asserting any of its rights and remedies as to any
default shall not operate as a waiver of any default or of any rights or remedies associated with a
default, and the rights and remedies of the parties are cumulative and the exercise by either party
of one or more of such rights or remedies shall not preclude the exercise by it, at the same or
different times, of any other rights or remedies for the same default or any other default by the
other party. In the event that a default of either party may remain uncured for more than thirty
(30) calendar days following written notice, as provided above, a "breach" shall be deemed to
have occurred. In the event of a breach, the party who is not in default shall be entitled to
terminate this Agreement and seek any appropriate remedy or damages by initiating legal
proceedings. If any action or proceeding is brought to enforce the terms hereof or declare rights
hereunder, it shall be brought in the Superior Court of the County of San Bernardino, San
Bernardino District, State of California. The governing Laws to be applied in any such action or
proceeding shall be the Laws of the State of California. The prevailing party in any such legal
proceedings shall be entitled to recover as an element of its costs of bringing such suit, and not as
part of its damages, its reasonable attorneys' fees, court costs, expert witness fees and consultant
fees and costs. The costs, salary and expenses of the City Attorney and members of his office in
such action or proceeding on behalf of the Agency shall be considered as "attorneys' fees" for
purposes of this Section.
Section 13. NONDISCRIMINATION. During the Contractor's performance of the
Services, the Contractor shall not discriminate on the grounds of race, religion, creed, color,
national origin, age, ancestry, physical handicap, medical condition, marital status, sex, or sexual
orientation in the performance of the Services, including, without limitation, in the selection and
retention of employees, general contractors and subcontractors and the procurement of materials
and equipment, except as provided in Section 12940 of the California Government Code.
Section 14. CONFLICT OF INTEREST. The Contractor warrants, by execution of
this Agreement, that it has no interest, present or contemplated, in the Program or in any Home
benefited thereby or Work performed on any Home using the Grant and the Grant Funds. The
Contractor further warrants that it owns or possesses no interest in real property, business
interests or owner of income (other than such amounts of compensation payable by the Agency
to the Contractor for the Services under this Agreement) that will be affected by the Program or,
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alternatively, if such interest exists or arises the Contractor will promptly file with the Agency an
affidavit disclosing any such interest.
Section 15. AMENDMENTS. All amendments to this Agreement shall be subject to
the approval of both parties in the sole discretion of each of them, mutual and in writing. The
Executive Director of the Agency is authorized to make non-substantive changes, clarifications,
corrections to the Agreement, including budget line item adjustments, provided such actions are
approved by legal counsel for the Agency and do not increase the Agency's monetary annual
appropriation to the Contractor as approved by the governing board of the Agency.
Section 16. TERMINATION.
(A) This Agreement may be terminated for any reason by either party who is not then
in default upon thirty (30) calendar days prior written notice to the other party. In such event, the
Contractor shall be entitled to receive compensation for Services pro-rated through the date of
such termination, provided that the Services have been rendered.
(B) In the event of a termination of the Agreement as a result of a breach, the rights
and duties of the parties shall be as set forth in Section 12.
(C) In the event of any termination of this Agreement, the Contractor shall promptly
return all Grant Funds that have been disbursed by the Agency to the Contractor with the
exception of any Grant Funds that have been paid by the Agency to the Contractor and that have
been properly disbursed by the Contractor to or for the benefit of the Qualified Homeowner
under this Agreement, without charge or expense to the Agency.
Section 17. ASSIGNMENT. It is mutually understood and agreed that this
Agreement shall be binding upon the Agency and its successors and assigns and upon the
Contractor and its permitted successors and permitted assigns. The Agency may assign this
Agreement, without obtaining the prior consent or approval of the Contractor. The Contractor
may not assign this Agreement without obtaining the prior written consent of the Agency, which
written consent may be given or withheld by the Agency in its sole and absolute discretion. Any
assignment or attempt to assign this Agreement by the Contractor shall be void.
Section 18. NOTICES. Communications, notices, bills, invoices or reports required
by this Agreement shall be in writing and shall be deemed to have been given when actually
delivered, if given by hand delivery or transmitted by overnight courier service, or if mailed,
three (3) business days after being deposited in the United States mail, postage prepaid, to the
address noted below:
Agency
Redevelopment Agency
of the City of San Bernardino
Attention: Interim Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 92401
Contractor
Neighborhood Housing Services of
the Inland Empire, Inc.
Attention: Executive Director
1390 North "D" Street
San Bernardino, California 92405
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Phone: (909) 663-1044
Fax: (909) 888-9413
Phone: (909) 884-6891
Fax: (909) 889-4085
Either party may change its address for receipt of written notice by notifying the other
party in writing of a new address for delivering notice to such party.
Section 19. REPRESENTATION AND WARRANTY OF CONTRACTOR. The
Contractor hereby represents and warrants to the Agency as follows:
(A) the Contractor is a California nonprofit corporation duly organized, existing, and
authorized to transact business in California;
(B) the corporate charter and by-laws of the Contractor authorize the Contractor to
provide the Services to the Agency and the governing board and membership of the Contractor
have previously taken all action necessary to authorize the execution of this Agreement by the
Contractor;
(C) the Contractor is qualified to perform the Services and shall timely perform and
complete the Services in a professional manner.
Section 20. GRANT FUNDS AND GRANT DOCUMENTS ARE THE
PROPERTY OF THE AGENCY. The Grant Documents for each Grant are the property and
asset of the Agency. The Contractor has no property interest in any such Grant Documents and
the Contractor shall not transfer, assign or pledge as collateral or claim any other security interest
in any such Grant Documents. All of the Grant Documents are the property of the Agency, and
the Contractor shall maintain all such Grant Documents in its possession as confidential
consumer business records of the Qualified Homeowner. All Grant Funds disbursed by the
Agency to the Contractor for the benefit of a Qualified Homeowner are the property of the
Agency until paid by the Contractor to the General Contractor upon the completion of the Work
at the Horne for the account of the Qualified Homeowner under the applicable Grant Documents.
Section 21. NON-ELIGIBILITY OF HOMEOWNER. Once the Agency has
approved the Grant Application for the Qualified Homeowner and has disbursed the Grant Funds
to the Contractor for the benefit of the Qualified Homeowner under this Agreement, the
Qualified Homeowner now or hereafter shall have no right to receive any other grant or loan
being provided by the Agency to the general public under any grant or loan program, including,
without limitation, any grant being offered by the Agency under the Mobile Home Grant
Program or any loan being offercd by thc Agency to the general public under the Single Family
Rehabilitation Loan Program until: (i) ten (10) years after the date that the Agency has paid the
last installment of any loan or Grant Funds to the Contractor for the benefit of the Qualified
Homeowner under this Agreement, and (ii) the Qualified Homeowner has paid in full any loan to
the Agency in accordance with the Loan Documents.
Section 22. GENERAL PROVISIONS. This Agreement constitutes the sole
agreement between the parties. All prior conversations, agreements or representations relating
hereto are integrated in this Agreement. No oral agreement, representation or warranty shall be
4830-6027 -8022.1
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binding upon the parties. If any provISIOn of this Agreement shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining portions of this
Agreement shall not in any way be affected or impaired thereby. Failure of any party to enforce
any provision of this Agreement shall not constitute a waiver of the right to compel enforcement
of the same provision or any remaining provisions of this Agreement. Headings at the beginning
of each section or subsection are solely for the convenience of the parties and are not a part of
this Agreement. Whenever required by the context of this Agreement, the singular shall include
the plural and the masculine shall include the feminine and vice versa. This Agreement shall not
be construed as if it had been prepared by one of the parties, but rather as if all parties had
prepared the same. Unless otherwise indicated, all references to sections are to this Agreement.
All exhibits referred to in this Agreement are attached hereto and incorporated herein by this
reference. If the date on which any action is required to be performed under the terms of this
Agreement is not a business day, the action shall be taken on the next succeeding business day.
This Agreement may be executed in one or more counterparts each of which shall be an original
but all of which together shall constitute but one original Agreement. This Agreement may be
executed by facsimile signatures, and each facsimile counterpart when taken together shall be
deemed an original Agreement. Time is of the essence in this Agreement.
4830-6027-8022.1
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IN WITNESS WHEREOF, the Contractor and the Agency have caused this Agreement
to be duly executed on the date first above written.
AGENCY
Dated:
rlJ /;0
Redevelopment Agency of the
City of San Bernardino,
a public bo~and politic
c::;; ~.. ... r/. .......j
By: . I -
Emil A. arzullo, Interim Executive Director
Approved as to Form:
(/~4~
Agency Couns 1
CONTRACTOR
Neighborhood Housing Services
of the Inland Empire, Inc.,
a California non-profit corporation
Date:
X-5 -/L)
~~7
By:.,.L/ ~~
, .'7
Name: /2iv,d key tie,
Title: Executive Director
Date:
By:
Name:
Title:
4830-6027-8022.1
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EXHIBIT "A"
2010 Income Limits
4830-6027-8022.1
20
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CDC/2010-43
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CDC/2010-43
EXHIBIT "B"
General Contractor Agreement
4830-6027-8022.1
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NHSIE: Single Family Beautification Grant Program
Neighborhood Housing
Services
of the
Inland Empire, Inc.
~~'"
. ~ ylNHSIE
~IGHBORHOOO
HOUSING SERVICES
OF THE INLAND EMPIRE. INe
SINGLE FAMILY BEAUTIFICATION GRANT PROGRAM
GENERAL CONTRACTOR AGREEMENT
^ L)..
. NelghborWorkso-..
File No: <<FileNo>>
Owner(sl:
Rehab Address:
THIS AGREEMENT is made this _ day of _by and between
the "Owner(s)" hereinafter called the "Contractor".
hereinafter called
WITNESSETH, that the Contractor and the Owner(s) for the consideration stated herein agree
as follows:
1. RECITALS: This Agreement is made and entered into with respect to the following facts:
a) That the Redevelopment Agency of the City of San Bernardino (the "Agency") has a program to
help low-moderate income resident-owners of single family homes (which shall not include any
duplex, triplex or four-plex dwellings) make certain improvements to their homes, called the
Single Family Beautification Grant Program; and,
b) Neighborhood Housing Services of the Inland Empire, Inc. (the "NHSIE") has contracted with
the Agency to administer said housing beautification program, pursuant to applicable laws;
and,
c) Owner has determined to participate in such program by causing certain improvements to be
made to his/her property, and has qualified for a grant to undertake such improvements; and,
d) Contractor attests that its company is properly licensed and fully qualified to perform the work
proposed to be accomplished in this Agreement, under terms and conditions hereinafter set
forth; and,
e) Owner and the Contractor acknowledge and agree that the NHSIE and the Agency are third
party beneficiaries of this Agreement, consistent with the NHSIE mission of housing
rehabilitation.
2. CONSIDERATION: THE UNDERSIGNED CONTRACTOR proposes to furnish labor and materials,
complete in accordance with the specifications attached hereto as Exhibit "A" and incorporated herein
by this reference for the sum of ($ l, with payments to be made
within ninety (90) calendar days from the completion of the work, subject to any additions and
deductions as provided herein.
3. WORK: Contractor agrees to complete all work in accordance with the contract documents, all
applicable laws, and in a workmanlike manner, according to generally acceptable, standard building
practices. Any alteration or deviation from the attached specifications will be executed only upon
written consent of the property Owner(s), the Contractor, and the NHSIE. All materials are guaranteed
to be as specified. No extra charges or costs will be paid. Contractor will be solely liable if he/she
has neglected to properly evaluate the extent of the rehabilitation work. The performance under this
Agreement is subject to forced delays when due to strikes, accidents or acts of God.
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NHSIE: Single Family Beautification Grant Program
4. INDEMNIFICATION: The Contractor agrees to indemnify, defend and hold harmless the NHSIE,
the Agency and their authorized officers, members, directors, employees, agents, contractors,
subcontractors and volunteers (collectively, the "Indemnified Parties") from any and all claims, actions,
losses, damages, suits, fees (including, without limitation, reasonable attorneys' fees, court costs,
expert witness fees and consultant fees), obligations and/or liabilities (singularly, a "Claim" and
collectively, the "Claims"), now or hereafter arising out of this Agreement from any cause whatsoever,
including acts, errors or omissions of any person and for any costs or expenses incurred by the
NHSIE, by the Agency and/or by any of the other Indemnified Parties on account of any Claim
therefore, except where such indemnification is prohibited by law. This indemnification provision shall
survive the execution, the performance, the termination and the expiration of this Agreement.
5. INSURANCE: Without in anyway affecting the indemnity herein provided and in addition thereto,
the Contractor shall secure and maintain throughout the term of Agreement, and shall continue one (1)
year after the performance by the Contractor of the work under this Agreement, the following types of
Insurance:
a. Workers' Compensation - a program of Workers' Compensation insurance or State-
approved Self Insurance Program in amount or form to meet all applicable requirements of the
Labor Code of the State of California, including Employer's Liability with $1,000,000 limits,
covering all persons providing services on behalf of the Contractor and all risks to such
persons under this Agreement.
b. Comprehensive General and Automobile Liability Insurance - This coverage to include,
without limitation, comprehensive general liability policy of insurance with coverage at least as
broad as "Insurance Services Office Commercial General Liability Form (G0001), in the amount
not less than $1,000,000 combined single limit per occurrence, with said insurance covering
comprehensive general liability including, but not limited to, contractual liability, assumed
contractual liability under this Agreement, acts of subcontractors, premises-operations,
explosion, collapse and underground hazards, if applicable, broad form property damage,
bodily injury and personal injury including libel, slander and false arrest and automobile liability
coverage on owned, hired and non-owned vehicles.
c. Errors and Omissions Liability Insurance - Combined single limits of $1,000,000 and
$2,000,000 in the aggregate or Professional Liability insurance with limits of at least
$1,000,000 per claim or occurrence.
6. ADDITIONAL NAMED INSURED, PRIMARY INSURANCE AND BEST'S KEY RATING: All
policies, except for the Workers' Compensation, the Errors and Omissions and the Professional
Liability policies shall contain additional endorsements naming the NHSIE, the Agency and the other
Indemnified Parties as additional named insureds with respect to liabilities arising out of the
performance of the services hereunder. All insurance obtained by the Contractor shall be primary to
and shall not be contributing with any insurance carried by the NHSIE, by the Agency and/or by any of
the other Indemnified Parties. All insurance policies required under this Agreement shall be obtained
from insurance companies admitted in the State of California and rated at least A: XII in the most
current Best's Key Rating Insurance Guide.
7. WAIVER OF SUBROGATION OF RIGHTS: Except for Errors and Omissions Liability, the
Contractor shall require the insurance carriers of the above required coverage's to waive all rights of
subrogation against the NHSIE, against the Agency and against the other Indemnified Parties.
8. PROOF OF COVERAGE: Contractor shall immediately furnish certificates of insurance to the
NHSIE and to the Agency evidencing the insurance coverage, including endorsements, above
required prior to the commencement of performance of the services hereunder, which certificates shall
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NHSIE: Single Family Beautification Grant Program
provide that such insurance shall not be terminated or expire without thirty (30) calendar days prior
written notice to the NHSIE and to the Agency, and the Contractor shall maintain such insurance from
the time the Contractor commences performance of services hereunder until one (1) year after the
completion of such services. Within sixty (60) calendar days after the commencement of this
Agreement, the Contractor shall furnish the NHSIE and the Agency with certified copies of the policies
and all endorsements.
9. INSURANCE REVIEW: The above insurance requirements are subject to review by the NHSIE.
10. ACCEPTANCE & START: The bid and proposal shall be accepted by the Owner(s) and by the
NHSIE within sixty (60) calendar days from the date established by the NHSIE for its receipt, provided
that no work shall be commenced by the Contractor until a written Notice to Proceed has been issued
by the Owner(s). Work will begin no later than ten (10) calendar days after the Notice to Proceed is
issued. Contractor will not assign this Agreement without the prior written consent of the Owner(s) and
of the NHSIE. Any request for assignment shall be addressed to the NHSIE.
11. PERMITS: Contractor shall procure all City of San Bernardino and all other governing authority
permits and licenses, including a municipal business license, and shall pay all charges and fees for the
same, and shall give all notices necessary and incidental to the due and lawful prosecution of the work
as it separately pertains to each party. Permits and licenses required for corresponding elements of
the work to be performed shall be obtained prior to commencing such work and all associated costs
are specifically included in the contract amounts.
12. CHANGE ORDERS: No change in the work, as described in the Work Write-up, shall be made
except upon the mutual written consent of the Owner(s), the Contractor and the NHSIE. Contractor is
not authorized to deviate from the Work Write-up or specifications unless so directed in writing by the
NHSIE. Any Change Orders shall describe the nature of the additional work, the estimated time for
completion thereof, and the compensation to be paid to the Contractor for the performance of same.
13. OWNER(S) EXPECTATIONS: Owner(s) will permit the Contractor to use existing utilities at no
cost, such as lighting, heating, power and water, as needed to carry out the work. Owner(s) will
cooperate with the Contractor to facilitate work performance, including the removal and replacement of
rugs, coverings, miscellaneous household goods and furniture as necessary, unless otherwise noted.
14. CONTRACTOR EXPECTATIONS: Contractor will keep the premises clean and orderly during the
course of the daily work and will remove all debris at the completion of the work. Materials and
equipment which belong to the Contractor shall be removed from the premises. Work should be
planned so that the Owner(s) are not forced to relocate during the rehabilitation work, except under
unusual circumstances.
15. COMPLETION: Contractor agrees to satisfactorily complete all the work within forty-five (45)
calendar days from the noticed start date. The parties agree that time is of the essence in this
Agreement.
16. LIEN RELEASES: Contractor shall promptly pay all valid bills and charges for material, labor, or
otherwise in connection with or arising out of the construction, and shall hold the Owner(s) of the
property free and harmless against all liens and claims of lien for labor and material, or either, filed
against the property or any part thereof, and from and against all expense and liability in connection
therewith, including, but not limited to, court costs and attorneys' fees resulting or arising there from.
Should any liens or claim of lien be filed for record against the property, or should the Owner(s)
receive notice of any unpaid bill or charge in connection with the construction, the Contractor shall
forthwith either pay and discharge the same and cause the same to be released of record, or shall
furnish the Owner(s) with proper indemnity either by satisfactory corporate surety bond or satisfactory
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NHSIE: Single Family Beautification Grant Program
title policy, which indemnity shall also be subject to approval of the Lien Holder. Contractor shall
furnish the Owner(s) and the NHSIE with affidavits and satisfactory releases of liens or claims for any
liens from subcontractors, laborers and suppliers for completed work or installed materials.
17. NON-EXECUTION: In the event that the Owner(s) will not execute the End of Project Work
Release, the NHSIE reserves the right to authorize payment to the Contractor for the work completed.
The NHSIE and the Contractor must certify that all of the Contractor's work has been performed in a
professional, workmanlike manner, and has adhered to the property specification standards. Upon the
written approval by the NHSIE, a payment request will be forwarded to the Agency for release of said
funds.
18. WARRANTY: Contractor will guarantee work for a period of one (1) year from the date of the final
written acceptance of all work required by the Agreement. Furthermore, the Contractor shall furnish
the Owner(s), in care of the NHSIE, with copies of all manufacturers' and suppliers' written guarantees
and warranties covering materials and equipment furnished under this Agreement. Contractor will
allow the NHSIE access to examine and to inspect all rehabilitation work. NHSIE shall have the right,
but not the obligation, at all reasonable times, to inspect the books and records of the Contractor
pertaining to the work and to the materials which are the subject of this Agreement.
19. NOTICES: Notices pursuant to this Agreement shall be given by personal service to the person,
or by deposit in the custody of the US Postal Service, within a sealed envelope containing the notices,
postage pre-paid, and addressed as listed below. Such notice shall be deemed to be received within
forty-eight (48) hours from the time of mailing, if mailed as provided above. The following information
shall be used for mailed correspondence and communications related to this Agreement:
20. LEAD BASE PAINT ACKNOWLEDGEMENT AND LEAD BASE PAINT DISCLOSURE: Prior to
the commencement of the work: (i) the Contractor shall deliver to the Owner the Lead Base Paint
Disclosure and the Lead Base Paint Acknowledgement, (ii) the Owner shall execute and date the Lead
Base Paint Acknowledgement and the Lead Base Paint Disclosure, and (iii) the Contractor shall
deliver to both the NHSIE and to the Agency the Lead Base Paint Acknowledgement and the Lead
Base Paint Disclosure, as executed by the Owner.
OWNER INFORMATION:
CONTRACTOR DBA:
(Owner's Name)
(Contractor's Name)
(Rehab Address)
(Mailing Address)
(City)
(State)
(Zip Code)
(City)
(State)
(Zip Code)
(Telephone)
(FAX)
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NHSIE: Single Family Beautification Grant Program
PROJECT ADMINISTRATOR: Neighborhood Housing Services (NHSIE)
1390 North "D" Street
San Bernardino, CA 92405
Telephone: (909) 884-6891
FAX: (909) 884-4085
-----------------------------------------------
ACCEPTANCE AND SIGNATURES
CONTRACTOR:
Date:
OWNER(S):
Date:
THE ABOVE AGREEMENT HAS BEEN REVIEWED AND APPROVED
For NHSIE:
Date:
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NHSIE: Single Family Beautification Grant Program
Exhibit "A"
Work Specifications
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EXHIBIT "C"
SCOPE OF SERVICES
(Description of Program)
A. Contractor's Administration Annual Fee
The Agency shall annually compensate the Contractor an amount not to exceed the total sum of
One Hundred Two Thousand Three Hundred Seventy-Five Dollars ($102,375) for the
administration and the implementation by the Contractor of the Program herein and for the
Services rendered under this Agreement, subject to the annual approval of the Agency in its sole
discretion and the appropriation by HUD.
Notwithstanding the foregoing, in the event the Contractor exceeds sixty-five (65) Grants in any
given year, additional Grant Funds will need to be procured in order to fund any additional
Grants made by the Contractor under this Agreement. The Agency will exercise its reasonable
efforts to amend this Agreement, in writing, and to obtain additional Grant Funds to fund
additional Grants, in excess of sixty-five (65) Grants, by the Contractor for that year. The
Agency makes no warranty, no representation and no covenant to the Contractor that the Agency
will be able to obtain any additional Grant Funds to fund any additional Grants under this
Agreement.
From and after the Effective Date of this Agreement and for the remammg term of this
Agreement, the Program Administration Fee payable by the Agency to the Contractor as
compensation for the Services performed by the Contractor under this Agreement shall be paid
by the Agency directly to the Contractor upon receipt by the Agency of a corrected invoice and
the Grant Funds Disbursement Ledger which shows all Grant Fund payments authorized by the
Agency and disbursed by the Contractor to the General Contractors and/or to the subcontractors
under this Agreement for which the Contractor has not been paid by the Agency. The Contractor
may not invoice the Agency more than once per month for the Grant Funds disbursed by the
Contractor under this Agreement and the Agency shall pay to the Contractor the correct amount
identified on the invoice within thirty (30) calendar days after the receipt by the Agency of the
following: (i) a corrected invoice, and (ii) the Grant Funds Disbursement Ledger.
B. Simde Family Beautification Grant Proeram (the "Proeram") ($682.500)
The Contractor shall accept the Grant Applications and the Maintenance Grant Needs Document
from respective Qualified Homeowner applicants to determine income and improvement
eligibility (see Exhibit "A" to this Agreement), to determine equity in the Home and to verify
ownership and length of ownership by obtaining a preliminary title report or other pertinent
documentation from a reputable title company. The Contractor shall offer the Program to
Qualified Homeowners in the Target Area on an as needed, first-come, first-served basis.
However, in the case of an emergency, of an urgent need or of a life-threatening situation, the
Contractor may process a Grant Application ahead of other Grant Applications subject to the
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approval by the Executive Director. The Improvements allowed under the Program are
described in Section "c" below of this Scope of Services.
C. Elhdble Improvements Permitted under the Pro2;ram
The following types of Improvements are permitted in connection with the Program: (i) window
and front door replacement, (ii) driveway repairs, replacements or enhancements, (iii) garage
door replacement, (iv) exterior painting, (v) drought tolerant landscaping including automatic
sprinklers, grass seed, and planting materials (front yard only) in accordance with the Agency
Landscaping Guidelines, (vi) replacement of existing fence with wrought iron, vinyl, wood or
block fencing (front yard only), (vii) parkway enhancements such as stamped concrete, trees and
landscape plantings, (viii) roof repairs and replacement, or (ix) the Sewer Repairs. In connection
with each Grant Application for Sewer Repairs, the Agency shall have the right to determine
whether or not such Sewer Repairs shall be made from funds disbursed by the Agency from
Grant Funds under the Program or from loan proceeds disbursed by the Agency to an applicant
under the Single Family Residence Rehabilitation Loan Program, or under any other then
existing loan program. Should the Agency determine that the Sewer Repairs will need to be
disbursed by the Agency from loan proceeds pursuant to the Single Family Residence
Rehabilitation Loan Program, or any other then existing loan program, the Contractor shall
advise the applicant, in writing, that the applicant will need to prepare, to execute and to submit a
new loan application to the Contractor under the Single Family Residence Rehabilitation Loan
Program, or under any other then existing loan program, which loan application, without
limitation, shall request the Agency to make a loan to the applicant to permit the applicant to
make and to complete the Sewer Repairs.
The maximum amount of the Grant permitted under the Program is the sum of Ten Thousand
Dollars ($10,000) per Home; provided, however, in connection with a Grant in the amount of
$10,000 made by the Agency to the Qualified Homeowner, for every dollar paid by the Qualified
Homeowner in excess of the $10,000 Grant Funds amount that has been disbursed by the Agency
and paid to the General Contractor or to any sub-contactors in accordance with the Program to
complete the Improvements, the Agency shall provide a dollar-for-dollar match not to exceed an
additional Five Thousand Dollars ($5,000), in the aggregate. In no event shall the Grant Funds
paid by the Agency to or for the benefit of the Qualified Homeowner to complete the
Improvements in connection with the Qualified Homeowner's Home exceed Fifteen Thousand
Dollars ($15,000), in the aggregate, without the prior written approval of the Executive Director.
D. Applicant Eli2;ibilitv Requirements for the Pro2;ram
1. Qualified Homeowner must be an owner and occupant of the Home, as its principal
residence, for a minimum period of one (1) year; on a case-by-case basis, and depending on the
circumstances, this one (1) year requirement may be waived by the Executive Director or his/her
designee; the Contractor shall obtain evidence of ownership and length of ownership and
residency.
2. Qualified Homeowner must execute and complete a Grant Application and a
Maintenance Grant Needs Document and must deliver and submit the Grant Application and the
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Maintenance Grant Needs Document, as fully executed and completed, to the Contractor. The
Contractor shall receive, review, verify and approve or reject the Grant Application and the
Maintenance Grant Needs Document. If the Grant Application and/or the Maintenance Grant
Needs Document is not acceptable to the Contractor, the Contractor shall notify the applicant in
writing within ten (10) business days from the receipt by the Contractor of the Grant Application
and/or of the Maintenance Grant Needs Document and the Contractor shall provide the applicant
with the reasons for the rejection by the Contractor.
3. Qualified Homeowner must have a personal or household income level, adjusted for
family size, during the twelve (12) months preceding the date of submission of the Grant
Application and the Maintenance Grant Needs Document to the Contractor within the ranges of
income for low-moderate income households, adjusted for family size, as set forth in Exhibit "A"
to this Agreement.
4. Qualified Homeowner must agree to: (i) attend a Maintenance Class conducted by the
Contractor and (ii) live in the Qualified Homeowner's Home, as its principal residence, for not
less than five (5) years after the recordation of the Maintenance Covenant Agreement in the
County Recorder's Office.
5. Qualified Homeowner must execute and acknowledge, where appropriate, the Grant
Documents. The Qualified Homeowner, without limitation, shall execute and notarize the
Maintenance Covenant Agreement and the Contractor or the Agency shall record, or shall cause
the recordation of, the Maintenance Covenant Agreement in the County Recorder's Office. The
Maintenance Covenant Agreement shall provide, without limitation, that the Qualified
Homeowner shall maintain the Home as provided therein for a period of ten (10) years from the
date of the recordation of the Maintenance Covenant Agreement in the County Recorder's
Office.
6. Qualified Homeowner must not be the recipient of a grant or of a loan from the Agency
for the past ten (10) years.
E. Guidelines
The Contractor shall conduct, administer, implement, comply with and perform the following
guidelines in connection with the Program:
1. The Contractor shall administer and implement the Program herein and shall utilize the
applicable and pertinent sections of the Agency's Grant Policies and Procedures Manual for
guidance on processing and packaging all Grants under this Agreement, if applicable, under the
direction of the Executive Director.
2. The Contractor shall accept the Grant Applications and the Maintenance Grant Needs
Documents from respective Qualified Homeowner applicants to determine income and
improvement eligibility, to determine equity in the Home, and to verifY ownership and length of
ownership by obtaining a preliminary title report or other pertinent documentation from a
reputable title company. The Contractor shall offer the Program to Qualified Homeowners in the
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Target Area on an as needed, first-come, first-served basis. However, in the case of an
emergency, of an urgent need or of a life-threatening situation, the Contractor may process a
Grant Application on an urgent basis ahead of other Grant Applications subject to the approval
of the Executive Director.
3. The Contractor shall inspect eligible Homes and properties to determine the type of
health and safety and code violation repair work needed, including asbestos and lead-based paint
removal and/or remediation, the age and overall condition of the Home and to ensure that all
Homes repaired or improved under the Program when completed are aesthetically pleasing and
in compliance with all Laws. If the Contractor determines that the Improvements to be
completed are related more to health, safety and/or code violations, the Contractor shall advise
the Qualified Homeowner applicant to complete, execute and deliver an application under the
Rehabilitation Loan Program.
4. The Contractor shall prepare and complete Work write-ups, cost estimates, and bid
packages for the Improvements to be constructed, installed, performed and completed for each
Qualified Homeowner's Home.
5. The Contractor shall ensure that all Improvements and/or Work constructed, installed,
performed and/or completed in connection with the Qualified Homeowner's Home shall be
constructed, installed, performed and completed by pre-qualified State licensed General
Contractors and/or State licensed subcontractors. The Contractor shall also require that each
General Contractor and/or subcontractor constructing, installing, performing and/or completing
the Improvements and/or the Work in connection with the Qualified Homeowner's Home under
the Program shall possess a current business license in the City and shall possess a current
license with the State of California Contractor's License Board. The Contractor shall be
required, whenever feasible, to obtain a minimum of three (3) bids from General Contractors for
all Improvements and/or for all Work to be constructed, installed, performed and/or completed in
connection with the Qualified Homeowner's Home. All bids shall be made available by the
Contractor to the Qualified Homeowner for review. All Improvements and/or Work constructed,
installed, performed and/or completed by General Contractors and/or by subcontractors in
connection with the Qualified Homeowner's Home shall be approved and authorized by the
Qualified Homeowner, and shall be completed within a specified timeframe acceptable to the
Qualified Homeowner and the General Contractors and/or the subcontractors.
6. The Contractor shall solicit bids for the construction, installation, performance and/or the
completion of the Improvements and/or of the Work in connection with the Qualified
Homeowner's Home from a list of pre-approved General Contractors. The Contractor shall
assist the Qualified Homeowners with the selection of a General Contractor, and shall assist the
Qualified Homeowner in connection with the execution of the General Contractor Agreement,
including, without limitation, a determination as to the scope of the Improvements and/or of the
scope of Work to be constructed, installed, performed and/or completed by the General
Contractor, any schedule of performance, other schedules, conduct pre-construction and walk-
through conferences.
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7. Prior to the execution of the General Contractor Agreement and prior to any funding by
the Contractor of any Grant Funds to the General Contractor for the proposed Improvements
and/or Work to be constructed, installed, performed and/or completed, the Contractor, the
Qualified Homeowner, the General Contractor and the members of the Agency application
review committee (the "Application Review Committee") appointed and assigned by the Agency
to approve, administer and oversee the construction, the installation, the performance and/or the
completion of the Improvements and/or of the Work shall meet at regular intervals to discuss the
Improvements and/or the Work to be constructed, installed, performed and/or completed in
connection with the Qualified Homeowner's Home and the methodology used or to be used to
identify, quantify and assist the Qualified Homeowner.
8. The Agency and the Qualified Homeowner must review, approve, execute and
acknowledge, where designated, the Grant Documents. The Grant Documents shall include,
without limitation, the Maintenance Covenant Agreement which document must be executed and
acknowledged by the Agency and by the Qualified Homeowner and must be recorded by the
Contractor or by the Agency in the County Recorder's Office. The General Contractor and/or
any subcontractor cannot commence the construction, the installation, the performance and/or
the completion of the Improvements and/or of the Work in connection with a Qualified
Homeowner's Home until: (i) the Grant Documents have been executed and acknowledged,
where appropriate, by the Agency and by the Qualified Homeowner, and (ii) all recordable
instruments, documents and/or agreements in connection with the Grant, including, without
limitation, the Maintenance Covenant Agreement have been recorded by or for the Contractor or
the Agency in the County Recorder's Office.
9. The General Contractor shall obtain one or more permits as required by applicable Laws
to construct, to install, to perform and/or to complete the Improvements and/or the Work at the
Qualified Homeowner's Home. At the time that the Contractor submits an invoice to the Agency
for payment of all or a portion of the Grant Funds in connection with the Grant made by the
Agency to the Qualified Homeowner, the Contractor shall provide the Agency with a copy of
each permit that is or will be required to construct, to install, to perform and/or to complete the
Improvements and/or the Work in connection with the Qualified Homeowner's Home. The
Agency shall have no obligation to pay any invoice submitted by the Contractor to the Qualified
Homeowner until the Agency has received and approved each permit issued for the
Improvements and/or for the Work completed by the General Contactor and/or by the
subcontractor and identified in the invoice.
10. The Contractor shall inspect and monitor the Improvements and/or the Work while in
progress and shall supervise the payment invoice procedures to ensure that all General
Contractors and subcontractors are meeting obligations and that progress payments and
retentions are paid in a timely manner.
11. The Contractor shall receive and collect from the General Contractors and/or from the
subcontractors an executed lien release under one of the following lien releases, as appropriate:
(i) an unconditional waiver and release upon progress payment or (ii) an unconditional waiver
and release upon final payment. The Contractor shall not make the final payment of the
remaining Grant Funds to any General Contractor until the General Contractor and/or all
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subcontractors have executed and the Contractor has received the conditional waiver and release
upon final payment or the unconditional waiver and release upon final payment.
12. The Contractor shall coordinate final inspection and payment of the General Contractor
Agreement retention with the Qualified Homeowner, with the General Contractor and with the
Agency. The contract retention shall not be paid by the Contractor to the General Contractors
and/or to the subcontractors until all time periods for filing liens have expired and no liens have
been filed under applicable Laws.
13. Prior to the payment by the Contractor of the Grant Funds, or any portion thereof, to the
General Contractor, for the construction, for the installation, for the performance and/or for the
completion of the Improvements and/or of the Work in connection with a Qualified
Homeowner's Home, the Contractor shall notify the Agency that the Contractor has received an
invoice for payment. Within ten (10) business days from receipt by the Contractor of the
invoice, the Contractor and the Agency shall inspect and approve the Improvements and/or the
Work identified in the invoice and constructed, installed, performed and/or completed by the
General Contractor and/or by any subcontractor. The Contractor shall not pay any such invoice
for the construction, installation, performance and/or completion of the Improvements and/or of
the Work until the Contractor and the Agency have inspected and approved, in writing, the
Improvements and/or the Work constructed, installed, performed and/or completed by the
General Contractor and/or by any subcontractors. The Agency reserves the right to approve
payment of an invoice in circumstances when no physical inspection is needed as determined by
the Agency in its sole and absolute discretion (i.e., fumigation for termites).
14. The Contractor shall maintain accurate records for inspection by the Agency concerning
income and program occupancy of all persons obtaining assistance from the Contractor pursuant
to this Agreement including, but not limited to, the Grant Application and the other Grant
Documents, proof of ownership, income verification, comparables or appraisals and/or Work
write-ups. The original Grant Documents shall be executed and acknowledged, where
appropriate, by the Agency and by the Qualified Homeowner, shall be for the benefit of the
Agency and shall be delivered by the Contractor to the Agency in connection with each Grant
made by the Agency to the Qualified Homeowner.
15. The Contractor shall also provide quarterly reports to the Agency, or as otherwise
required by the Agency, upon the request of the Executive Director to the Contractor.
16. From time to time, the Agency and the Contractor shall coordinate inspection of the
Improvements and/or of the Work at the Qualified Homeowner's Home to ensure that the
Improvements and/or the Work are performed, installed, constructed and completed in a good
workmanlike manner and in accordance with all applicable Laws.
17. The Contractor shall provide any and all services required by the Executive Director in
order to effectively implement and complete the Services under this Agreement.
18. Prior to the disbursement by the Agency of the Grant Funds, or any portion thereof, to, or
for the benefit of, the Qualified Homeowner pursuant to the Grant that has been awarded by the
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Agency to the Qualified Homeowner, the Contractor must fully comply with, verify and confirm,
to the satisfaction of the Agency, that all tasks, matters, items, events, and conditions listed on
the checklist (the "Checklist") have been fully performed and satisfied, unless specifically
waived in writing by the Agency in connection with such Grant. The Checklist shall not be
interpreted to limit or to restrict the Agreement, in any manner whatsoever. The Checklist is
attached hereto and incorporated herein by this reference as Exhibit "L".
4830-6027 -8022.]
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EXHIBIT "D"
Grant Application
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For Office Use ONLY
Application Mailed out on: I
CDC/2010-43
Redevelopment Agency of the City of San Bernardino-
Single Family Beautification Grant Program Application
Neighborhood Housing Services of the
Inland Empire, Inc. (NHSIE)
Applicant's Name (Last, First, MI)
Applicant's Date of Birth
Co-Applicant's Date of Birth
Applicant's Spouse's Name or Co-Applicant
Street Address
Applicant's Phone Number
(Office Use Only)
Map Verification
Date: Initials:
City/Zip
DO YOU HAVE ANY NOTICE OF VIOLATION WITH THE CITY OF SAN BERNARDINO CODE ENFORCEMENT
OR ANY OTHER CITY AGENCIES YES IF YES, PROVIDE COPY. NO
y
rd'
'd
L' 11
r .
'd
h h
ears lYe m reS1 ence: 1st a persons 1vmg m res1 ence ot er t an vou:
Name Relationship Age Employed
Yes No
Any income must be shown in income section. Must show proof of income to qualify. Written verification must be forwarded with application.
MONTHLY HOUSEHOLD GROSS INCOME
AFDC $ Social Securitv $ SSIISSP $
Disabilitv ~ Emolovment $ Food Stamns $
Unemnlovment Ins $ Pension/Retire $ Alimonv $
Child Suooort ~ Other/Real Pron. $
Total Monthly Income: $ Total Annual Income $
20 1 0 Income Level (Subject
to annual change)
Number of Persons Per Household
3 4 5 6
8
82,250
102,950
Ethnicity: (Please check all that apply) Optional
D Sr. Citizen(s)-60 or older
D Hispanic
D Black
D Female Head of Household
D Asian/Pacific
D White, Non-Hispanic
D Disabled One or More
D American Indian
D Other
I certify under penalty of perjury that the information provided above is correct to the best of my knowledge. I
understand that the inclusIOn of any willful misrepresentation on this form constitutes ground for rejection of this
application and recapture of any financial benefit I may have received, I authorize the NHSIE and/or the
Redevelopment Agency of the City of San Bernardino to examine and to verify any and all information
provided in this application.
Date:
Signature
Date:
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EXHIBIT "E"
Grant Services Agreement
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~~
. N-J_.t.~HSIE
. NEIGHBORHOOD
HOUSING SERVICES
OF THE INLAND EMPIRE, INe
Neighborhood Housing Services
of the
Inland Empire, Inc.
1390 North D Street/ San Bernardino, CA 92405 / Phone 909-884-6891 / Fax 909-884-8899 / www.nhsie.orl!
Single Family Beautification Grant Program
GRANT SERVICES AGREEMENT
Owner N ame( s)
Owner Address:
CONGRATULATIONS! You have been awarded the Single Family Beautification Grant
(the "Grant") in accordance with the Single Family Beautification Grant Program (the "Program")
from the Redevelopment Agency of the City of San Bernardino (the "Agency") in concert with the
Neighborhood Housing Services of the Inland Empire, Inc. (the "NHSIE"). A Grant means
that you may have certain housing repairs, and/or improvement needs taken care of at no cost to
you. The Grant is being made by the Agency to you under the Single Family Beautification Grant
Program and is in an amount not to exceed $ (except as provided for in Section 5 of
the Program Qualifications and Guidelines below).
NHSIE is authorized by the Agency to administer the Program. Priority is given on an as-
needed, first-come, first-served basis to applicants who have completed necessary paperwork.
However, in the case of an emergency, of an urgent need or of a life-threatening situation, the
NHSIE may process a Grant application (the "Grant Application") ahead of other Grant
Applications. Focus of the work will be to the exterior beautification (curb appeal) of the home
and of the front yard landscaping within limitations. Please be aware that with restricted funds it is
not possible to do everything that everyone wants. Nor is it possible to address all deficiencies,
code and/or safety items with this minor Grant. In order to serve as many homes as possible,
work priorities will be decided by the NHSIE on an individual basis. For example, appliance
repairs, backyard patios, or custom items are not covered; front landscaping, roof replacement,
fences may be covered.
PROGRAM QUALIFICATIONS & GUIDELINES: Applicants must understand and agree to the
following:
1. Assistance is available to low-moderate income eligible owner-occupants who live in the
City of San Bernardino;
2. Homeowner must complete the Grant Application and the Maintenance Needs Application
Document and must submit to the NHSIE the Grant Application, the Maintenance Needs
Application Document and necessary qualifying verifications, as requested;
P:\Agendas\Agenda Attachments\Exhibits\20 1 0\7.19.10 NHSIE Grant ServicesAgreement
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SINGLE FAMILY BEAUTIFICA nON GRANT SERVICES AGREEMENT
3. Homeowners must own their home and occupy it as their principal residence for a
minimum of one (1) year prior to the submission of the Grant Application and of the
Maintenance Needs Application Document to the NHSIE;
4. Personal household Income level, adjusted for family size, during the twelve (12) months
preceding the date of submission of the Grant Application and the Maintenance Needs
Application Document must not exceed 120% of county median for low-moderate income
households (the "low-moderate income"), as determined by the HUD income guidelines for
families, as adjusted from time to time; all household sources of income earned from
persons who are eighteen years and older and who reside in the household as their
principal residence shall be considered;
5. Up to $10,000 in Grant funds may be available per household for minor repairs; provided,
however, the actual amount of the Grant may be lower depending on the nature of repairs.
If the Grant from the Agency to the homeowner is in the amount of $10,000 and if the
Grant funds have been disbursed under the Program to pay for the work that has been
completed, the Agency will make a dollar-for-dollar match of an additional $5,000, in the
aggregate, for every dollar paid by the homeowner to complete the work. In no event shall
the Grant from the Agency to the homeowner under the Program exceed $15,000, in the
aggregate, unless specially agreed to in writing by the Agency;
6. Final determination as to the Scope of Work (as defined below) rests with the NHSIE
Redevelopment Specialist, based upon need, extent of work, urgency of situation,
code violations, funding availability and other issues;
7. Homeowners must continue to upkeep their improved property after the work is done, and
show their commitment by signing the RESIDENTIAL PROPERTY MAINTENANCE
AGREEMENT CONTAINING COVENANTS AFFECTING REAL PROPERTY (Single
Family Beautification Grant Program) (the "Covenant Agreement");
8. Homeowners must execute and acknowledge all Grant Documents (as defined in the
Single Family Beautification Grant Program Agreement (the "Beautification Grant Program
Agreement");
9. Homeowners must not have received a loan or grant from the Agency for the past ten (10)
years, all loans made by the Agency, if any, to the homeowner must be paid in full by the
homeowner, and the homeowner must have repaid all grant amounts owed by the
homeowner to the Agency under any prior grant program resulting from the homeowner's
breach under such grant program;
10. Homeowners must promise to continue living in their home for five (5) years after
completion of the work. If the home is sold within five years after the recordation of the
Covenant Agreement in the official records of the San Bernardino County Recorder's
Office, State of California (the "County Recorder's Office"), the homeowner (original
beneficiary) must reimburse the full Grant amount back to the Agency. A copy of your
Covenant Agreement will be recorded in the County Recorder's Office and sent to the
Agency as a permanent record. HIO Initials
SCOPE of WORK: NHSIE will schedule an appointment in your home. During the visit, the
NHSIE Redevelopment Specialist will inquire as to your needs, observe the outside of the
4849-8797-9267.1
CDC/2010-43
SINGLE FAMILY BEAUTIFICATION GRANT SERVICES AGREEMENT
structure, and determine what work can best be accomplished under the Program. One or more
inspections may be necessary, depending on each situation. Photos of the property will be taken
and a Work Write-up (the "Scope of Work") will be prepared. You will be asked to sign a waiver
for the photos and to authorize placement of a NHSIE sign and an Agency sign in your front yard,
to remain during the construction. The work on your home will be scheduled in the coming
weeks.
Role of NHSIE
1. NON-PROFIT ADMINISTRATOR: NHSIE is a private, non-profit 501 (c) (3) corporation, which
provides down-payment and housing assistance programs, homeownership education, and is
committed to reducing neighborhood blight and improving the condition of local housing via
several beautification programs. NHSIE has contracted with the Agency to implement and to
administer the Agency's Program.
2. WORK PERFORMANCE: The Owner will enter into a general contractor agreement (the
"General Contractor Agreement") with a general contractor approved by the NHSIE (the
"General Contractor"). The General Contractor shall complete the Scope of Work in
accordance with the General Contractor Agreement. The General Contractor, without
limitation, shall hire one (1) or more subcontractors, arrange for materials or supply deliveries,
and/or initiate whatever is reasonably necessary to accomplish the Scope of Work in a timely
and professional manner.
3. MODIFICATIONS: The NHSIE Redevelopment Specialist may from time-to-time make
modifications in materials, labor or materials as deemed appropriate for the progress of the
Scope of Work.
4. AUTHORITY TO NHSIE: Homeowner authorizes the NHSIE staff to issue orders and/or
instructions as necessary to initiate and to continue the work, generally based upon the Work
Write-up. In the absence of the homeowner, the NHSIE will issue such instructions needed to
carry out the work and progress towards completion; to stop work when such work appears to
be in violation of code, health and safety matters, or when the work or situation could lead to
obvious injury of persons or property; to stop work that would significantly alter the Scope of
Work, or exceed the project budget or Program limits; and to make decisions considered in
the best interest of the homeowner and/or the Agency.
5. TECHNICAL SERVICES: NHSIE does not charge the homeowner for technical services and
will continue to provide in-progress inspections on site at no cost to the homeowner. The
NHSIE will make every effort to see that contractors, subcontractors and suppliers provide
appropriate materials and deliver services of good quality. The NHSIE can neither assume
liability for, nor guarantee contractor or subcontractor work quality, or failure to adequately
perform on site.
6. RESOLUTION OF DISPUTES: Upon written notice from the homeowner or the contractor,
the NHSIE will arrange to meet with the contractor, the subcontractor or the supplier most
directly responsible for the work in question, as well as with the homeowner. The parties will
discuss, examine, decide upon, and approve the disputed issue before it proceeds further.
NHSIE will make reasonable efforts to help the parties resolve the matter. In the absence of
resolution, the Agency has the final determination as to outcome.
HID Initials
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CDC/2010-43
SINGLE F AMIL Y BEAUTIFICATION GRANT SERVICES AGREEMENT
Homeowner's)' Responsibilities
1. COOPERATION: Homeowner agrees to cooperate fully with the NHSIE, the assigned
contractors, the sub-contractors and the suppliers during the construction process so that the
work may progress as scheduled.
2. PAPERWORK: It is the homeowner's responsibility to review, approve and sign various
documents (i.e. the Write-up, Scope-of-Work), major change-orders, job completion, and
invoices. Timeliness is of the essence.
3. UTILITIES & INSURANCE: Homeowner agrees to make electric, water and other utilities
available to support the construction activity without charge. Homeowner also agrees to
include the in-progress work and materials under their homeownership insurance policy.
4. ACCESS: Homeowner is responsible for providing regular, safe access to work site as
discussed and pre-arranged at the beginning of the project. The homeowner or a responsible
adult should be available during the work day to respond to questions. No work will be done
when children (under 18) are home alone at the site. The homeowner should provide for and
protect animals and pets by keeping them away from the work site. Aggressive or dangerous
animals should be chained or removed from site during construction. NHSIE is not responsible
to move furniture or owner's belongings. Small or personal items should be put away,
covered, and/or removed from the work site by the homeowner. NHSIE staff will be courteous
and treat homeowner's property with respect; however, the NHSIE accepts no liability for
broken, lost or damaged personal property, furniture, appliances, vehicles, plants, or animals.
HIO Initials
5. PROJECT DELAYS: NHSIE has the right to stop work and to move on to another client if
there are substantial, continued or unwarranted delays due to the homeowner involvement,
over-eagerness, or interference. Any financial liabilities incurred up to that point are those of
the homeowner alone.
6. CONCERNS: As Program administrator, the NHSIE is the homeowner's primary contact
during the job. Please direct any issues, concerns, or questions to the NHSIE Redevelopment
Specialist as soon as possible. NHSIE will contact contractors, subcontractors or suppliers to
address your stated concerns. However, once materials are installed in place, the ability to
make changes, repairs or replacement is not likely, and could involve other direct costs to the
homeowner, which extend beyond the scope of the Grant.
General Provisions
1. Homeowner agrees to hold harmless and indemnify the NHSIE, the Agency, and their
employees, members, officers, directors, agents, employees, contractors, sub-contactors and
consultants, in connection with acts performed by them or omissions that occur under this
Covenant Agreement and/or which would reasonably be associated with consultation,
technical advice, property inspection, and construction activities done in good faith.
2. Homeowner agrees and authorizes the NHSIE staff to obtain and/or provide specific reports,
property title and tax searches, building code inspection reports, property appraisals, termite
reports, hazardous certifications, repair specifications, cost estimates, contractors bids, and to
4849-8797-9267.1
CDC/2010-43
SINGLE FAMILY BEAUTIFICATION GRANT SERVICES AGREEMENT
initiate inspections and/or materials deemed necessary to adequately perform the job. NHSIE
provides regular progress reports to various agencies, such as the Agency.
3. Whenever the pronouns "I", "my", "me" are used in this Agreement, they shall mean "we",
"our", and "us" respectively, if more than one homeowner is responsible.
AUTHORIZATION AND ACCEPTANCE OF AGREEMENT
In connection with this Grant, in reference to proposed construction services, I hereby declare that
I (we) meet the Program qualifications, understand the guidelines, and accept the terms
described above. I (We) further support and authorize the NHSIE, the Agency and their
designated staff, contractors and/or subcontractors to access and to inspect my property during
normal business hours, to monitor, to supervise, to act as technical assistant, and to perform all
necessary construction activities, for the beautification of my property, which is located at: _
San Bernardino. CA
Owner Signature:
Co-Owner:
Date:
Date:
For: Neighborhood Housing Services of the Inland Empire, Inc.
By:
Date:
~ ~
NelghborWorks""
CHARTERED MEMBER
4849-8797-9267.1
CDC/2010-43
EXHIBIT "F"
Homeowner's Release and Waiver
4830-6027-8022.1
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~l~
\';\L 1] IE
'-' NEIGHBORHOOD
HOUSING SERVICES
OF THE INLANO EMPIRE, INe
1390 North D Streetl San Bernardino, CA 92405 1 Phone 909-884-6891 1 Fax 909-884-8899 1 www.nhsie.ofl!
CDC/2010-43
Neighborhood Housing
Services
of the
Inland Empire, Inc.
SINGLE FAMILY BEAUTIFICATION GRANT PROGRAM
HOMEOWNER'S RELEASE AND WAIVER
I, , OWNER of the property located at:
Print Your Name
_San Bernardino, CA do hereby approve and
Address
grant Neighborhood Housing Services of the Inland Empire, Inc. (NHSIE) the following:
PERMISSION TO PHOTOGRAPH
1. PERMISSION TO PHOTOGRAPH OR VIDEO TAPE THE PROPERTY, REsmENCE, AND OTHER OUT
BUILDINGS, SUCH AS GARAGES, SHEDS, ETC. FOR THE PURPOSE OF INSPECTION RECORDS, JOB
PROGRESS, BEFORE-AND-AFTER SHOTS, AND FOR FILE DOCUMENTATION. I UNDERSTAND AND
APPROVE THAT THIS MATERIAL MAY ALSO BE UTILIZED FOR PRESENTATIONS, DISPLAYS,
ADVERTISEMENTS OR PUBLICITY TO FURTHER AGENCY AND/OR NHSIE HOUSING PROGRAMS.
2. I WAIVE ANY RIGHTS WITH RESPECT TO COMPENSATION OR DAMAGES FOR USE OF PHOTOGRAPHS,
MEDIA, AND VIDEOS RELATED TO THE PROPERTY.
Owner's Signature
Redevelopment Specialist
Date:
Date:
~ ~
NelghborWorks""
CHARTERED MEMBER
4823-731 J -8468. J
All rights reserved. No Part of this documentation may be reproduced or transmitted in any form, by any means without the prior
written permission ofthe publisher, Neighborhood Housing Services ofthe Inland Empire, Inc. Rev: 8/5/2009
CDC/2010-43
EXHIBIT "G"
Lead Based Paint Acknowledgment
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Lead Base Paint Pamphlet - Acknowledgement of Receipt
Confirmation of Receipt of Lead Pamphlet
D I have received a copy of the pamphlet, Renovate Right: Important Lead Hazard Information for
Families, Child Care Providers and Schools informing me of the potential risk of the lead hazard
exposure from renovation activity to be performed in my dwelling unit. I received this pamphlet
before the work began.
Printed name of recipient
Date
Signature of recipient
Self -Certification Option (for tenant-occupied dwellings only)-
If the lead pamphlet was delivered but a tenant signature was not obtainable,
you may check the appropriate box below.
D Refusal to sign - I certify that I have made a good faith effort to deliver the pamphlet,
Renovate Right: Important Lead Hazard Information for Families, Child Care Providers,
and Schools, to the rental dwelling unit listed below at the date and time indicated and
that the occupant refused to sign the confirmation of receipt. I further certify that I have
left a copy of the pamphlet at the unit with the occupant.
D Unavailable for signature - I certify that I have made a good faith effort to deliver
the pamphlet, Renovate Right: Important Lead Hazard information for Families, Child
Care providers and Schools, to the rental dwelling unit listed below and that the occupant
was unavailable to sign the confirmation or receipt. I further certify that I have left a
copy of the pamphlet at the unit by sliding it under the door.
Printed name of person certifying
Attempted delivery date; and
Time lead pamphlet delivery.
Signature of person certifying lead pamphlet delivery
Unit Address
Note Regarding Mailing Option - As an alternative to delivery in person, you may mail the lead
pamphlet to the owner and/or tenant. Pamphlet must be mailed at least 7 days before renovation
(Document with a certificate of mailing from the post office).
P:\Agendas\Agenda Attachments\Exhibits\20\ 0\7.\9.\ 0 NHSIE Baeut Grant LBP Acknowledgement
CDC/2010-43
EXHIBIT "H"
Lead Based Paint Disclosure
4830-6027-8022.1
33
P:\Agendas\Agenda Attachments\Agenda Attachments\Agrmts-Amend 20] 0\8-2-1 0 NHS IE SFR Beautification Grant Program Agreement
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, r u.s. Oepaclment 01 Hotning and UrtJan Development _ OffICe 01 ComrnunIy Pbnning and O.vetopment
To: Clwrl<<rs. T ~nl$ and PlIl1:IlUef$ of Housing CoNttuction befOf'e 1978 FH .
Rt: NOTIFICATION: Wa.ch Out For lead-8aSed Paint Poisoning Date
This propHy was cOMttuded be ore J 978. There Is a possllilly it corulns lea<f.based paint.. Please read lhe following information
conce ~ad'bued airlt . . .
Sources 01 lead Ba5ed Pa91l . .
The IOlErIGtS 01 older homes and ap.lmenl$ often MY_layers ollea<t.based pain! <IC'Ilhe walls. c~. window siIb, doOfli and door
ft'mes. le.d.based paint and primers may also have bHn uSt(J on OUlside pon:hes, flI~ P....... escapes and IaI11> ~ts.
W~n the painl c:tIips. llakes Of peels olf. fler. ~ be a real danger f<< babies and young c:hiIdfen. Chichn may eat paint chips Of'
chew on painted railings, window a.s at OCher i'ems when paren(1 .. nol around. Cttien can also ~ lead even I !hey do noc
spedc:alIy lat paint chips. Fat eJCamp1e. when children pfay In an area wflete tiler. Ire ~ paint ~ or dusl pafticres on Iheir
hands. put lbeIr hands in!o l!leir mouths. and ingest a dangerous amount, ~ lead.
Hazilrds Gllead.Baud P.aiq(
lelld poisoning is dangerous - especially to chidren under d1e age of se".n (7). Il can eventualy cause menial retardatIOn;,
blindness and even dell". .
Sytmlorm 01 Lead.aaslK! Paint PGisnnill9
Has ,wr chid been espeNliy Cranlcy or i-pable? 1$ he or she eating normaIy? Does)'OUl" chid have stomach aches and lIOriing?
Does he 01 st.. co~in about headac~s'l Is Y<</f chifd unwilling 10 P.1aY? 1btse mar be slgris ~ '.a<t poUorWlg. Many times
though. lI",r. .re no s~oms ., aiL Because tIl.. Ilfe no ~Ortl$ does ftQC mean thai VfO should nor b. c;oocetned . you
believe your child has been elCpOSed to lead-based paint
~Yaiablitvof Blood lead level Screeni1a
" you $USpCCI that your cI\IId has eaten chip; of paint or lOmeorIe told you tn. you should take yooc c:hifd Co the dodot or dnic for
t4l-,ing. If the '.sl shows that )'01K child ha$ an elevated blood Iud Ievef. treatmenl ic avaWM. Conl*=l YOIII' doe1or or Joc:af heallll
dtpatUneflt lot help at more inIonnasion.. lead screening and trealmm are available Ihorougft !he JAedicald Prowam lOf those who
..... eligtbte. fI yOu child is identified as having an elevated ~d r.tad level. VOU shociId inlrnedateIy noB'y the Comnlu.nily
Developmetlt at other ag8nq< 10 whlch you or your lanclotd Is applying for ~bIitation 'assisqnce s<) the necessilty IIeps cafI be
t."en 10 'nl )'OW unIl for read-based paint halards. I your uni does have Iear:f-based paint. }lOCI may be eliglbr. lor .ssista~ (0
abal& lhal ttazant. .
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Precauliam to Take to Prevw;w lelld-Based Pain. PoisonilJg
YOtI Coin avoidlead.bas.d paint poislming by performing lome preventi'le maint~. look.. !he Mis. ceilings. doors. door
lranws and.window siIIs._ Are there p1acea: whet-. the plllnlls peeling. flaIQng, chi~g. or~? . SO. Chefe are COf!'\l! things
you CoIn do IInmecbC4try 10 prolect your chid:
(.II) CGwr all furnittn and IIPPlianees; \ :
lb) Dus. conl.1~ lead CM be . heati11t~aro. Do NOT vacuum Joose paln!. Sweep and damp mop: i.
. (c) ~ up · peees of painl and pIasler andpull1em in . paper bag or _. them in l'le\I/Spaper. PtJt lhese packages in !he trash t:
can. 00 NOT 8URH THEM; !'
~~'::::':~~~::':'~~.c"':';I~~~:4t':;ofO,:: ~"=::=::::::=::~ area 10 . i
(eJ On noc ~Io()~ PAInt 10 (~~'ltinrourcfl~en:.re~~ since ~.n~~ick.~~.~ ~"~ ~,~,~ ~~.., .....: : ~
. .'.l-f9.mt~.MiJ!!I..~and ~re,rr.- O(Le~Q.,Yd'ft~l:Wams:<. ",....: ...':...<......:.:. :.' .'.> >.~..:.. :.;;:.:,..;::. .;::;. ....: :....... n ':.;:. .: . '.': .: t,~
. . :..AS iJ~~er. ~l,I s,~"~~.fI1~;nec~a(y:~~:.O)(~'~:~-i(i'~.Sh.jlC. .\V~~.~ff.~J~y'~g;"> .::.... ":: 18
',:'::;~;..::;'~r:r~~~~=~.~;~~~,~~~~~:~j~~C:~'~:';'~~:~." .:." '........ .: ii
. $(rrfN.~:'..If..'\C;V41.liccrn1g;Ct~k~:.~.......'ioOH.~_,Jii.,....,.,..,.,...>._>..~:....~: >~~r.~~, ..... ...~iI1e. ..... ....... ~:,.
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. :-"<:P'~..~~~I~~..i'~~IiHp~~~,,_~,,~;cIl:~:' . \_:. .' .....d-..~.~.:.:' hifteVei'~. '. ..:. ::
:.'; .:.:. ~!I~:;~~.J!~:Io:~~f:'~M,Ui(Pliiiii~~~~klJ~.it'~j~.'~eliOa;idt~~.~Mc~~niO~: ~PHlting . . 1__
.... -'" ~.~.,.,~: l,;....'.oas.ld ,\lu'.'1 S&lrf!,e~ ~s Mt eImWl3l..tio.lia18rd. .~~ that you as *" a~.~ ~ _p ,ote !" ""-' , .
. ~... Y..."....,.;, .....'01 t)oolf:\""",y Y~tr.ilCIlQM':lM :lWarCMS:= alio&( lhi! lead pr~ eM nrice II big ddll!f~ Ii
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'YUtt :.1""".1 .'.......d..ole'"' ....Idy .ht! m.Jllagerncnl o(tlCo! Of lite agency ChrOVllh whICh you lite pUfd1~ your home i( "to une II..~
Iltl.....I. d"l....'.I."tlW<".'1I1f1 \11 (1414!1.'91131r1t. W:'I~r ~3kli (,om pbrtbw,g. or a cfc!fec.iwc rool YCtO,. should COCI()l!l31e tvilh "'"" ollICe's
'~'I4I', In ..1..... "'01 Uti.
.J . It. lYe rCC~IV~1 il Copy of IltQ N<t1rce .,,,hll.,d : Protect Your F~ily From Lead in
Your Home.
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Homeowner's Siqnature
Date
NHSIE Rehab Specialist
n..."''''
CDC/2010-43
EXHIBIT "I"
Maintenance Covenant Agreement
4830-6027-8022.1
34
P:\Agendas\Agenda Attachments\Agenda Attachments\Agrmts-Amend 2010\8-2-] 0 NHSIE SFR Beautification Grant Program Agreement
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RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
Redevelopment Agency
of the City of San Bernardino
Attn.: Interim Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 92401
(Space Above Line Reserved For Use By Recorder)
Recording Fee Exempt Pursuant to Government Code Section 6103
RESIDENTIAL PROPERTY'MAINTENANCE AGREEMENT
CONTAINING COVENANTS
AFFECTING REAL PROPERTY
Single Family Beautification Grant Program
THIS RESIDENTIAL PROPERTY MAINTENANCE AGREEMENT CONTAINING
COVENANTS AFFECTING REAL PROPERTY (the "Covenant") is made and entered into as
of ,2010, by and between the REDEVELOPMENT AGENCY OF THE CITY OF
SAN BERNARDINO, a public body, corporate and politic (the "Agency") and
(the "Owner") and this Covenant relates to the following facts set forth in Recitals:
RECIT ALS:
WHEREAS, the undersigned is/are the Owner of that certain improved real property
located in the City of San Bernardino, State of California, and more particularly described in
Exhibit "A" attached hereto and incorporated herein by this reference (the "Property"); and
WHEREAS, the Agency and,..theNeighooroood Housing Services Of The Inland Empire,
Inc., a California non-profit corporation (the "Contractor") executed, delivered and entered into
the Single Family Beautification Grant Program Agreement (the "Beautification Grant Program
Agreement"), dated , 2010; and
WHEREAS, pursuant to the Beautification Grant Program Agreement the Agency has
agreed to make separate grants to Qualified Homeowners (as defined therein) in accordance with
and pursuant to the terms, covenants and conditions of the Beautification Grant Program
Agreement; and
WHEREAS, in accordance with and pursuant to the Beautification Grant Program
Agreement and the Program (as defined ,in the Beautification Grant Program Agreement), the
Agency has determined that the Owner is eligible to receive a Grant (as defined in the
Beautification Grant Program Agreement) from the Agency to enable the Owner to construct, to
install, to perform and to complete the Improvements (as defined therein) at the Property; and
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WHEREAS, as a condition to the making of the Grant by the Agency to the Owner, the
Owner must execute and acknowledge, where appropriate, the Grant Documents (as defined in
the Beautification Grant Program Agreement) including the execution and acknowledgment by
the Owner of this Covenant which Covenant shall be recorded in the County Recorder's Office
(as defined below).
NOW, THEREFORE, IN CONSIDERATION OF THE RECITALS MENTIONED
ABOVE, FOR THE APPROVAL AND FOR THE MAKING OF THE GRANT BY THE
AGENCY TO THE OWNER AND FOR SUCH OTHER GOOD AND VALUABLE
CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY
ACKNOWLEDGED BY THE OWNER AND BY THE AGENCY, THE OWNER AND THE
AGENCY COVENANT AND AGREE AS FOLLOWS:
Section 1. Definitions of Certain Terms. As used in this Covenant, the following
words and terms shall have the meaning as provided in the Recitals or in this Section 1 unless the
specific context of usage of a particular word or term may otherwise require:
Adjusted Family Income. The words "Adjusted Family Income" mean the anticipated
total annual income (adjusted for family size) of each individualized or family residing or treated
as residing in the Property as calculated in accordance with Treasury Regulation 1.167(k) - 3
(b )(3) under the Code, as adjusted, based upon family size in accordance with the household
income adjustment factors adjusted and amended from time to time, pursuant to Section 8 of the
United States Housing Act of 1937, as amended.
County Recorder's Office. The words "County Recorder's Office" mean the official
records of the county recorder for the County of San Bernardino, State of California.
Covenant. The word "Covenant" means this "Residential Property Maintenance
Agreement Containing Maintenance Covenants Affecting Real Property" by and between the
Owner and the Agency.
Covenant Term. The words "Covenant Term" shall have the meaning set forth in
Section 5.
Low-Moderate Income Family. The words "Low-Moderate Income-Family" means
persons and families whose income does not exceed 120 percent of area median income,
adjusted for family size by the department in accordance with adjustment factors adopted and
amended from time to time by the United States Department of Housing and Urban Development
pursuant to Section 8 of the United States Housing Act of 1937.
Owner. The word "Owner" means the owner of the Property (e.g.: all persons identified
as having property ownership interest vested in the Property).
Successor-In-Interest. The words "Successor-In-Interest" mean and refer to the person
or household, which may acquire the Property from the Owner at any time during the Covenant
2
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Term by purchase, assignment, transfer or otherwise. The Successor-In-Interest shall be bound
by each of the covenants, conditions and restrictions of this Covenant.
The titles and headings of the sections of this Covenant have been inserted for convenience of
reference only and are not to be considered a part hereof and shall not in any way modify or
restrict the meaning of any of the terms or provisions hereof.
Section 2.
Acknowlede:ments and Representations of the Owner.
The Owner hereby acknowledges and represents that, as the date of execution of this
Covenant:
(a) the total household income for the Owner does not exceed the maximum amount
permitted as Adjusted Family Income for a Low-Moderate Income Family adjusted for family
Size;
(b) the Owner intends to occupy the Property after the date of execution of this
Covenant as the principal place of residence for a term of at least five (5) years following the
date of recordation of this Covenant in the County Recorder's Office and the Owner has not
entered into any arrangement and has no present intention to rent (without the prior written
consent of the Agency), sell, transfer or assign the Property to any third party during the
Covenant Term so as to frustrate the purpose of this Covenant;
(c) the Owner has no present intention to lease or rent any room or sublet or rent a
portion of the Property to any relative of the Owner or to any third person at any time during the
Covenant Term.
Section 3. Maintenance Condition of the Property. The Owner, for itself, its
successors and assigns, hereby covenants and agrees that:
(a) The exterior area of the Property, which are subject to public view (e.g.: all
improvements, paving, walkways, landscaping, and ornamentation) shall be maintained in good
repair and a neat, clean and orderly condition, ordinary wear and tear excepted. In the event that
at any time during the term of the Covenant Term, there is an occurrence of an adverse condition
on any area of the Property which is subject to public view in contravention of the general
maintenance standard described above (a "Maintenance Deficiency") then the Agency shall
notify the Owner in writing of the Maintenance Deficiency and give the Owner thirty (30)
calendar days from the date of such notice to cure the Maintenance Deficiency as identified in
the notice. The words "Maintenance Deficiency" include without limitation the following
inadequate or nonconforming property maintenance conditions and/or breaches of single family
dwelling residential property use restrictions:
. failure to properly maintain the windows, structural elements, and painted exterior
surface areas of the dwelling unit in a clean and presentable manner;
3
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. failure to keep the front and side yard areas of the Property free of accumulated
debris, appliances, inoperable motor vehicles or motor vehicle parts, or free of
storage of lumber, building materials or equipment not regularly in use on the
Property;
. failure to regularly mow lawn areas or permit grasses planted in lawn areas to
exceed nine inches (9") in height, or failure to otherwise maintain the landscaping
in a reasonable condition free of weed and debris;
. parking of any commercial motor vehicle in excess of 7,000 pounds gross weight
anywhere on the Property, or the parking of motor vehicles, boats, camper shells,
trailers, recreational vehicles and the like in any side yard or on any other parts of
the Property which are not covered by a paved and impermeable surface;
. the use of the garage area of the dwelling unit for purposes other than the parking
of motor vehicles and the storage of personal possessions and mechanical
equipment of persons residing in the Property.
In the event the Owner fails to cure or commence to cure the Maintenance Deficiency
within the time allowed, the Agency may thereafter conduct a public hearing following
transmittal of written notice thereof to the Owner ten (10) calendar days prior to the scheduled
date of such public hearing in order to verify whether a Maintenance Deficiency exists and
whether the Owner has failed to comply with the provision of this Section 3(a). If, upon the
conclusion of a public hearing, the Agency makes a finding that a Maintenance Deficiency exists
and that there appears to be non-compliance with the general maintenance standard, as described
above, thereafter the Agency shall have the right to enter the Property (exterior areas only) and
perform all acts necessary to cure the Maintenance Deficiency, or to take other action at law or
equity the Agency may then have to accomplish the abatement of the Maintenance Deficiency.
Any sum expended by the Agency for the abatement of a Maintenance Deficiency as authorized
by this Section 3(a) shall become a lien on the Property. If the amount of the lien is not paid
within thirty (30) calendar days after written demand for payment by the Agency to the Owner,
the Agency shall have the right to enforce the lien in the manner as provided in Section 3(c).
(b) Graffiti which is visible from any public right-of-way which is adjacent or
contiguous to the Property shall be removed by the Owner from any exterior surface of a
structure or improvement on the Property by either painting over the evidence of such vandalism
with a paint which has been color-matched to the surface on which the pain is applied, or graffiti
may be removed with solvents, detergents or water as appropriate. In the event that graffiti is
placed on the Property (exterior areas only) and such graffiti is visible from an adjacent or
contiguous public right-of-way and thereafter such graffiti is not removed within seventy-two
(72) hours following the time of its application; then in such event and without notice to the
Owner, the Agency shall have the right, but not the obligation, to enter the Property and to
remove the graffiti. Notwithstanding any provision of Section 3(a) to the contrary, any sum
expended by the Agency for the removal of graffiti from the Property as authorized by this
Section 3(b) shall become a lien on the Property. If the amount of the lien is not paid within
4
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thirty (30) calendar days after written demand for payment by the Agency to the Owner, the
Agency shall have the right to enforce its lien in the manner as provided in Section 3(c).
(c) The parties hereto further mutually understand and agree that the rights conferred
upon the Agency under this Section 3 expressly include the power to establish and enforce a lien
or other encumbrance against the Property in the manner provided under Civil Code Sections
2924, 2924b and 2924c in the amount as reasonably necessary to restore the Property to the
maintenance standard required under Section 3(a) or Section 3(b), including attorneys' fees and
costs of the Agency associated with the abatement of the Maintenance Deficiency or the removal
of graffiti and the collection of the costs of the Agency in connection with such action. In any
legal proceeding for enforcing such a lien against the Property, the prevailing party shall be
entitled to recover its attorneys' fees and costs of suit. The provisions of this Section 3 shall be a
covenant running with the land for the Covenant Term and shall be enforceable by the Agency in
its discretion, cumulative with any other rights or powers granted by the Agency under
applicable law. Nothing in the foregoing provisions of this Section 3 shall be deemed to
preclude the Owner from making any alterations, additions, or other changes to any structure or
improvement or landscaping on the Property, provided that such changes comply with the zoning
and development regulations of the City of San Bernardino and other applicable law.
(d) Any lien in favor of the Agency as may arise under this Section 3 will not become
effective until such time as the Agency records a "Notice of Lien" in the official records of San
Bernardino County which references this Section 3 of this Covenant. Any lien in favor of the
Agency created pursuant to this Section 3 shall be subject to the lien or charge of any mortgage,
deed of trust or other financing or security instrument made in good faith and for value in favor
of an institutional lender prior to the date of such Notice of Lien. In the event of a foreclosure of
such a deed of trust or other lien which predates such Notice of Lien, or in the event of an
acceptance of a deed in lieu of foreclosure, the Agency lien evidenced by such a Notice of Lien
which has accrued up to the date of foreclosure or the acceptance of a deed in lieu of foreclosure
shall be extinguished, and the foreclosure purchaser or deed in lieu grantee shall take title in the
Property free of the Agency lien evidenced by the Notice of Lien; provided however, any such
successor of a security interest in the Property during the Covenant Term shall be subject a new
lien of the Agency arising under of this Section 3 for all charges that may accrue under this
Section 3 subsequent to the foreclosure or deed given in lieu of foreclosure during the Covenant
Term.
Section 4. Covenants to Run With the Land. The Owner and the Agency hereby
declare their specific intent that the covenants, reservations and restrictions set forth herein are
part of a plan for the promotion and preservation of affordable single family housing within the
territorial jurisdiction of the Agency and that each shall be deemed covenants running with the
land and shall pass to and be binding upon the Property and each Successor-In-Interest of the
Owner in the Property for the Covenant Term. The Owner hereby expressly assumes the duty
and obligation to perform each of the covenants and to honor each of the reservations and
restrictions set forth in this Covenant. Each and every contract, deed or other instrument
hereafter executed covering or conveying the Property or any interest therein shall conclusively
be held to have been executed, delivered and accepted subject to such covenants, reservations,
5
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and restrictions, regardless of whether such covenants, reservations and restrictions are set forth
in such contract, deed or other instrument.
Section 5. Covenant Term. The words "Covenant Term" mean and refer to the
period of time when this Covenant shall be in effect. Following its recordation, this Covenant
shall be in effect for ten (10) years after the date of this Covenant. This Covenant shall run with
land and shall be enforceable by the Agency and by the City of San Bernardino, as the successor
public agency to the Agency.
Section 6.
State of California.
Governine: Law. This Covenant shall be governed by the laws of the
Section 7.
instrument executed
Agency.
Amendment. This Covenant may be amended only by a written
by the Owner (or the Successor-In-Interest, as applicable) and by the
Section 8. Attorneys' Fees. In the event that the Agency brings an action to enforce
any condition or covenant, representation or warranty in this Covenant or otherwise arising out
of this Covenant, the prevailing party in such action shall be entitled to recover from the other
party reasonable attorneys' fees to be fixed by the court in which a judgment is entered, as well
as the costs of such suit. For the purposes of this Section 8, the words "reasonable attorneys'
fees" in the case of the Agency include the salaries, costs and overhead of the lawyers employed
in the Office of the City Attorney ofthe City of San Bernardino.
Section 9. Severability. If any provision of this Covenant shall be declared invalid,
inoperative or unenforceable by final judgment or decree of a court of competent jurisdiction
such invalidity or unenforceability of such provision shall not affect the remaining parts of this
Covenant which are hereby declared by the parties to be severable from any other part which is
found by a court to be invalid or unenforceable.
Section 10. Time is of the Essence. For each provision of this Covenant which states
a specific amount of time within which the requirements thereof are to be satisfied, time shall be
deemed to be of the essence.
Section 11. Notice. Any notice required to be given under this Covenant shall be
given by the Agency or by the Owner, as applicable, by personal delivery or by First Class
United States mail at the addresses specified below or at such other address as may be specified
in writing by the parties hereto:
If to the Agency:
Redevelopment Agency of the City of San Bernardino
Attention: Interim Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 92401
Phone: (909) 663-1044
If to the Owner:
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San Bernardino, CA 9240
Phone: (909)
Notice shall be deemed given five (5) calendar days after the date of mailing to the party, or, if
personally delivered, when received by the Interim Executive Director of the Agency or the
Owner, as applicable. Each party may change its address by notifying the other party, in writing,
of the party's new address.
Section 12. Recitals. The Recitals set forth in this Covenant are true and correct and
are incorporated herein by this reference.
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IN WITNESS WHEREOF, the Owner and the Agency have caused this Covenant to be
signed, acknowledged and attested on their behalf by duly authorized representatives in
counterpart original copies which shall upon execution by all of the parties be deemed to be one
original document, all as of the date first written above.
OWNER
Date:
By:
Print:
By:
Print:
AGENCY
Redevelopment Agency
of the City of San Bernardino
Date:
By:
Carey K. Jenkins, Director of Housing
and Community Development
[ALL SIGNATURES MUST BE NOTARIZED]
Approved as to Form:
By:
Agency Counsel
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EXHIBIT "A"
Legal Description of the Property
9
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EXHIBIT" J"
Maintenance Grant Needs Document
4830-6027 -8022.\
35
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~~.r--....
\\l ~ I NHSIE
~ li"EIGHBORHOOD
HOUSING SERVICES
OF THE INLAND EMPIRE, INe
Neighborhood Housing
Services
of the
Inland Empire, Inc.
1390 North D Street/ San Bernardino, CA 92405 / Phone 909-884-6891 / Fax 909-884-8899 / www.nhsie.ofl!
Maintenance Grant Needs Document
(Please Include with your Application)
Homeowner Name:
Address:
Telephone (Day):
(Eve ):
City (*Mail Address): ZIP:
(* You must live in the City of San Bernardino to qualify for assistance)
ELIGIBLE IMPROVEMENTS: Please check items as needed. A NHSIE
Redevelopment Specialist will determine improvements based on loan funding, evident
need, program guidelines, and code health and safety issues. Priority consideration will
be given to most pressing items, but limited to items below as determined by NHSIE
assessment.
Exterior
SIGNATURE:
DATE
b.. .6-
NelghboiWorks-
CHARTERED MEMBER
4848-9147-0340.1 All rights reserved. No Part ofthis documentation may be reproduced or transmitted in any form, by any
means without the prior written permission of the publisher, Neighborhood Housing Services of the Inland Empire, Inc.
Rev: 8/5/2009
EXHIBIT "K"
Target Area
4830-6027 -8022.1
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CDC/2010 43
Legend
NHSIE (11,697 Residential Parcels)
.. RHOC (6,745 Residential Parcels)
Low-Mod Residential - COSG Eligible
Annexation 3067
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CDC/2010-43
EXHIBIT "L"
Checklist
4830-6027-8022.1
37
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CDC/2010-43
BEAUTIFICATION GRANT APPLICATION APPROVAL CHECKLIST
Date of Review:
Homeowner(~ name:
Property Address:
Grant Amount:
NHS Due Diligence:
Qualified Homeowner Verification:
_ Resided at residence for at least one (1) year
Attended Maintenance Class on:
_ Maintenance Covenant Agreement complete
_ Income eligibility verified
Subject Property Equity Determination:
_ Property profile I encumbrances - Debt I Equity Ratio:
_ Property Profile: Name(s) on grant application MUST match the one(s)
listed as "Owner" or "Co-owner" on property profile
_ Preliminary title report (or other pertinent documentation)
_ Legal owner & signatory on Covenant Agreement & Grant Agreement
Property Eligibility Verification:
_ Parcel Map ("Exhibit A")
_ Located within Target Area'(if-applicable)
_ Verification property located jnCUy of San Bernardino
Eligible Improvements:
_ Scope of Work consistent with "Eligible Improvements" (see list on
reverse side)
Construction Bids:
1. Name of contractor:
2. Name of contractor:
3. Name of contractor:
Job Cost Amount: $
Job Cost Amount: $
Job Cost Amount: $
, $
P:\Agendas\Agenda Attachments\Exhibits\201 0\7.19.1 0 NHSIE Beaut Grant Checklist
CDC/2010-43
Eligible Improvements List:
_ Window and front door replacement
_ Driveway repairs, replacements, or enhancements
_ Garage door replacement
_ Exterior painting
_ Drought tolerant landscaping (front yard only): automatic
sprinklers, grass seed, planting materials
_ Replace existing fence (front yard only): wrought iron, vinyl, wood,
or block fencing
_ Parkway enhancements: stamped concrete, trees, landscape
plantings
_ Any roof repairs or replacement
_ Any sewer repairs or replacement (if equity in home and
homeowners financial situation qualifies them for grant monies as
determined by Application Review Committee)
P:\Agendas\Agenda Attachments\Exhibits\20 1 0\7.19. J 0 NHSIE Beaut Grant Checklist
Exhibit B
Neighborhood Housing Services of the Inland Empire ("NHSIE")
Single- Family Residence Rehabilitation Loan Program Agreement
~R;2t
&'12-7/0
CDC/2010-43
REDEVELOPMENT AGENCY OF THE CITY OF
SAN BERNARDINO
SINGLE FAMILY RESIDENCE REHABILITATION LOAN PROGRAM AGREEMENT
(Low-Moderate Housing Fund)
THIS SINGLE F AMIL Y RESIDENCE REHABILIT A TION LOAN PROGRAM
AGREEMENT (the "Agreement") is made and entered into this 2nd day of August, 2010 (the
"Effective Date"), by and between the NEIGHBORHOOD HOUSING SERVICES OF THE
INLAND EMPIRE, INC., a California non-profit corporation (the "Contractor") and the
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (the "Agency"), a
public body, corporate and politic. The Agency and the Contractor agree as follows:
RECIT ALS
WHEREAS, and the Agency administers a single family residence rehabilitation loan
program which loans funds (the "Rehabilitation Loan Program") to low-moderate income
homeowners who reside in the City of San Bernardino (the "City"), in the County of San
Bernardino (the "County"), in the State of California (the "State") to permit such homeowners to
undertake certain housing rehabilitation and correction work, including, without limitation,
asbestos and lead containing materials abatement work, handicap accessibility improvements and
utility energy improvements to single family residential dwelling units owned and occupied by
such low-moderate homeowners; and
WHEREAS, the Agency desires to execute a three (3) year agreement with the
Contractor, renewable annually by the Agency as set out herein subject to the appropriation by
the United States Department of Housing and Urban Development ("HUD"); and
WHEREAS, the Agency desires to allocate an amount not to exceed the sum of Two
Hundred Fifty Thousand Dollars ($250,000) annually of Low-Moderate Housing Funds, in
accordance with the terms, the covenants and the conditions of this Agreement, which amount
may be increased by the Agency as set out herein in the event the minimum number of required
Loans is exceeded by the Contractor for any given year; and
WHEREAS, the Rehabilitation Loan Program promotes and expands the supply of
affordable housing in the City and fosters the elimination and prevention of blight; and
NOW, THEREFORE, IN CONSIDERATION OF THE RECITALS MENTIONED
ABOVE, THE MUTUAL PROMISES OF THE AGENCY AND OF THE CONTRACTOR IN
THIS AGREEMENT AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE
RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY ACKNOWLEDGED BY THE
AGENCY AND BY THE CONTRACTOR, THE AGENCY AND THE CONTRACTOR
AGREE AS FOLLOWS:
4814-7529-0118.1
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Section 1. DEFINITIONS OF CERTAIN TERMS. In addition to the words and
phrases, which are defined in the Recitals of this Agreement and/or in this Agreement, the
following words and terms shall have the meaning set forth below:
"County Recorder's Office" means and refers to the County Recorder's Office for the
County of San Bernardino, State of California.
"Deed of Trust" means and refers to the Deed of Trust and Assignment of Rents securing
the obligations of the Note and encumbering the Home. The Deed of Trust must be
executed and acknowledged by the Qualified Homeowner and shall be recorded by or for
the Agency in the County Recorder's Office. The Deed of Trust shall be subordinate to
the Senior Deed of Trust. The Deed of Trust must be substantially similar to the Deed of
Trust attached hereto and incorporated herein by this reference as Exhibit "B".
"Environmental Laws" mean and refer to all applicable federal, state, municipal and local
laws, statutes, codes, ordinances, rules, regulations, orders and judgments relating to the
protection or clean-up of the environment, the use, treatment, storage, transportation,
generation, manufacture, processing, distribution, handling or disposal of, or emission,
discharge or other release or threatened release of hazardous substances, the preservation
or protection of waterways, groundwater, drinking water, air, wildlife, plants or other
natural resources, the health and safety of persons, or the protection of the health and
safety of employees, now or hereafter existing, as the same may be amended, modified or
supplemented from time to time, including, without limitation: the Clean Air Act, as
amended, 42 D.S.C. Section 7401 et seq.; the Federal Water Pollution Control Act, as
amended, 33 U.S.C. Section 1251 et seq.; the Resource Conservation and Recovery Act
of 1976, as amended, 42 D.S.C. Section 6901 et seq.; the Comprehensive Environment
Response, Compensation and Liability Act of 1980, as amended (including the Superfund
Amendments and Reauthorization Act of 1986, "CERCLA"), 42 D.S.C. Section 9601 et
seq.; the Toxic Substances Control Act, as amended, 15 D.S.C. Section 2601 et seq.; the
Occupational Safety and Health Act, as amended, 29 D.S.C. Section 651, the Emergency
Planning and Community Right-to-Know Act of 1986, 42 D.S.C. Section 11001 et seq.;
the Safe Drinking Water Act, as amended, 42 D.S.C. Section 300f et seq.; the California
Health and Safety Code (Section 25100 et seq., S 25249.5 et seq., Section 39000 et seq.);
the California Water Code (Section 13000 et seq.); the California Environmental Quality
Act ("CEQA"); the California Public Resources Code; all comparable state and local
laws, laws of other jurisdictions or orders and regulations; and any and all common law
requirements, rules and bases of liability regulating, relating to or imposing liability or
standards of conduct concerning pollution or protection of human health or the
environment, as now or may at any time hereafter be in effect.
"Executive Director" means and refers to the Interim Executive Director of the Agency
and his or her authorized representatives.
"General Contractor Agreement" means and refers to the Single Family Residence
Rehabilitation Loan Program General Contractor Agreement by and between the
Qualified Homeowner and the contractor identified therein (the "General Contractor") as
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approved, in writing, by the Contractor. The General Contractor Agreement relates,
without limitation, to the construction, the installation and the completion by the General
Contractor of the Work described in the General Contractor Agreement. The General
Contractor Agreement shall be executed by and between the Qualified Homeowner and
the General Contractor and shall be accepted, in writing, by the Contractor. The General
Contractor Agreement shall be substantially similar to the General Contractor Agreement
attached hereto and incorporated herein by this reference as "Exhibit "E".
"Hazardous Substances" mean and refer to any pollutant, contaminant, waste and any
toxic, carcinogenic, reactive, corrosive, ignitable, flammable or infectious chemical,
chemical compound or substance or otherwise hazardous wastes, toxic or contaminated
substances or similar materials, including, without limitation, any quantity of asbestos,
urea formaldehyde, PCBs, radon gas, lead, lead-based paint, crude oil or any fraction
thereof, all forms of natural gas, petroleum products, by-products or derivatives,
radioactive substances, methane, hydrogen sulfide or materials, pesticides, waste waters,
or sludges, any of the above of which are subject to regulation, control or remediation
under any Environmental Laws.
"Home" means and refers to the land and the single-family dwelling unit located thereon
in the Target Area within the City, owned by the Qualified Homeowner and resided in by
the Qualified Homeowner as its principal residence. For purposes of this Agreement, a
Home shall not include any duplex, triplex or four-plex dwelling located in the Target
Area.
"Homeowner's Release and Waiver" means and refers to the Homeowner's Release and
Waiver, as executed by the Qualified Homeowner and the Contractor. The Homeowner's
Release and Waiver provides, without limitation, that the Contractor shall be permitted to
display yard signs at the Qualified Homeowner's Home and that the Contractor shall be
permitted to photograph or videotape the Qualified Homeowner's Home. The
Homeowner's Release and Waiver shall be substantially similar to the Homeowner's
Release and Waiver attached hereto and incorporated herein by this reference as Exhibit
"F" .
"Improvements" mean and refer to the following types of eligible improvements to the
Qualified Homeowner's Home that will be permitted under the Program: (i) roof repairs
and re-roof or overlay, (ii) exterior and interior painting, including, without limitation,
lead testing, (iii) drought tolerant landscaping (irrigation system, with hydro seeds, sod or
artificial turf), (iv) window replacement, (v) carpet replacement and/or finished flooring
replacement, (vi) HV AC system, (vii) electrical work, (viii) sewer repair or sewer
installation (the "Sewer Repairs"), (ix) termite repairs, (x) exterior concrete hardscape
such as sidewalks, driveways, curbs, gutters, hand railings or ramps, (xi) door or window
screens repairs or replacements, (xii) tub, shower, toilet repairs or replacements, (xiii)
foundation or structural repairs, (xiv) fencing or (xv) installation of alternative energy
sources, including, without limitation, solar panels. The Improvements must relate to
health and safety code violations (i.e., blown sewer lines, septic tank destruction, etc.).
4814-7529-0118.]
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In connection with each Loan Application for Sewer Repairs, the Agency shall have the
right to determine whether or not such Sewer Repairs shall be made from funds disbursed
by the Agency from Loan Funds under the Program or from grant funds disbursed by the
Agency to an applicant under the Single Family Beautification Grant Program, or under
any other then existing grant program. Should the Agency determine that the Sewer
Repairs will need to be disbursed by the Agency from grant funds pursuant to the Single
Family Beautification Grant Program, or any other then existing grant program, the
Contractor shall advise the applicant, in writing, that the applicant will need to prepare, to
execute and to submit a new grant application to the Contractor under the Single Family
Beautification Grant Program, or under any other then existing grant program, which
grant application, without limitation, shall request the Agency to make a grant to the
applicant to permit the applicant to make and to complete the Sewer Repairs.
"Laws" mean and refer to all federal, state, municipal and local laws, statutes, codes,
ordinances, regulations, rules, orders or judgments, now or hereafter in effect, as
amended from time to time, including, without limitation, the Environmental Laws, all
applicable building, plumbing, mechanical, electrical and health and safety codes and
City ordinances.
"Lead Based Paint Acknowledgment" means and refers to the "Lead Based Paint
Acknowledgment of Receipt" as executed by the Qualified Homeowner and by the
General Contractor. The Lead Based Paint Acknowledgment acknowledges receipt by
the Qualified Homeowner of the Lead Based Paint Pamphlet from the General
Contractor. The Lead Based Paint Acknowledgment is attached hereto and incorporated
herein by this reference as Exhibit "G".
"Lead Based Paint Disclosure" means and refers to the "Lead Based Paint Disclosure" by
and between the Qualified Homeowner and the General Contractor. The Lead Based
Paint Disclosure is to be executed by the General Contractor and by the Qualified
Homeowner and is attached hereto and incorporated herein by this reference as Exhibit
"H".
"Loan" means and refers to each loan transaction approved, granted and made by the
Agency to or for the benefit of the Qualified Homeowner in accordance with this
Agreement. Each Loan shall be evidenced by a Note and secured by a Deed of Trust
encumbering the Home owned by the Qualified Homeowner to whom the Loan has been
made by the Agency. Each Loan made by the Agency to the Qualified Homeowner may
not exceed the lesser of: (i) $25,000 or (ii) twenty-five percent (25%) of the then fair
market value of the Home as determined by a licensed appraiser approved by the Agency
(the "Loan Amount"), without the prior written approval of the Executive Director. The
Loan shall be subordinate to the Senior Loan. The Qualified Homeowner shall pay all
amounts that exceed the Loan Funds paid by the Agency to or for the benefit of the
Qualified Homeowner under the Program to enable the Qualified Homeowner to
complete the Improvements in connection with the Qualified Homeowner's Home. For
each year during the term of this Agreement, the Contractor will attempt to approve
complete, process and finalize up to ten (10) Loans.
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"Loan Application" means and refers to the Single Family Residence Rehabilitation Loan
Program Application as fully completed and executed by the Qualified Homeowner. The
Loan Application shall be submitted by the Qualified Homeowner to the Contractor and
the Contractor shall verify that the Loan Application is complete. Each Loan Application
shall contain the information relating to the Qualified Homeowner and the proposed use
of the Loan Funds by the Qualified Homeowner together with a current preliminary title
report or other proof of title acceptable to the Agency for the Home. The Contractor shall
require all Qualified Homeowners to complete the Loan Application substantially similar
to the Loan Application attached hereto and incorporated by reference as Exhibit "I."
"Loan Disbursement Account" means and refers to a separate custodial deposit account,
which the Contractor shall establish with an FDIC-insured depository institution for the
receipt and disbursement of the Loan Funds in connection with the approval, granting and
making by the Agency to the Qualified Homeowner of the Loan under the Program in
accordance with this Agreement. Such deposit account agreement among the Contractor,
the Agency and such depository institution shall be in a form and substance as reasonably
satisfactory to the Agency. The Contractor shall create and maintain a separate Loan
Disbursement Account for each Loan approved, granted and made by the Agency to or
for the benefit of each Qualified Homeowner. No other funds of the Contractor shall be
deposited or co-mingled in the Loan Disbursement Account. The Contractor shall serve
as the trustee of the Agency in the administration of all of the Loan Funds or deposit in
each Loan Disbursement Account, including any interest as may accrue thereon.
"Loan Documents" mean and refer to the following: (i) the Loan Application, (ii) the
Loan Services Agreement, (iii) the Maintenance Covenant Agreement, (iv) the
Homeowner's Release and Waiver, (v) the Note, (vi) the Deed of Trust, (vii) the issuance
of a title policy in favor of the Agency in the amount of the Loan Funds approved by the
Agency from a title company acceptable to the Agency, and (viii) this Agreement and
such other agreements, documents, instruments, guarantees and/or certifications
evidencing, securing, guaranteeing, relating to or in connection with the Loan to the
Qualified Homeowner, the Loan Funds and/or the Loan Disbursement Account. The
Loan Documents shall be subordinate to the Senior Loan Documents.
"Loan Funds" mean and refer to the funds delivered by the Agency to or for the benefit
of a Qualified Homeowner in connection with the Loan that the Agency has approved
and made to the Qualified Homeowner in accordance with this Agreement. Each Loan
made by the Agency to the Qualified Homeowner may not exceed the Loan Amount,
without the prior written approval of the Executive Director. The Qualified Homeowner
shall timely pay all amounts that exceed the Loan Funds paid by the Agency to or for the
benefit of the Qualified Homeowner under the Program in order to construct, install,
perform and/or complete the Improvements in connection with the Qualified
Homeowner's Home.
"Loan Services Agreement" means and refers to the Single Family Residence
Rehabilitation Loan Program Loan Services Agreement by and between the Qualified
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Homeowner and the Contractor. The Loan Services Agreement, without limitation,
notifies the Qualified Homeowner that the Agency has made, or has agreed to make, the
Loan to the Qualified Homeowner, restates and certifies the Program qualifications and
guidelines, identifies the role of the Contractor and restates the Qualified Homeowner's
duties and responsibilities under the Program. The Loan Services Agreement must be
executed by the Qualified Homeowner and by the Contractor and must be substantially
similar to the Loan Services Agreement attached hereto and incorporated herein by this
reference as Exhibit "J".
"Low-Moderate Income Housing Funds" mean and refer to the Low-Moderate Income
Housing Funds that the Agency intends to use to make the Loan to or for the benefit of
the Qualified Homeowner in accordance with this Agreement and with Health and Safety
Code Section 33334.3 et seq. The Agency and the Contractor will offer the Loan to a
Qualified Homeowner who earns not more than 120% of the current annual median
income for the San Bernardino County area, adjusted for family size (as those terms are
defined by California Health and Safety Code Section 50053.5) as further illustrated in
Exhibit "A" of this Agreement (the "2010 Income Limits") and are subject to annual
adjustments.
"Maintenance Covenant Agreement" means and refers to the "Residential Property
Maintenance Agreement Containing Covenants Affecting Real Property (Single Family
Residence Rehabilitation Loan Program) by and between the Agency and the Qualified
Homeowner. The Maintenance Covenant Agreement provides, without limitation, for
maintenance-related duties and obligations to be performed and completed by the
Qualified Homeowner in connection with the Qualified Homeowner's Home. The
Maintenance Covenant Agreement shall be executed and acknowledged by and between
the Agency and the Qualified Homeowner, and must be in recordable form for
recordation by the Contractor or by the Agency in the County Recorder's Office. The
Maintenance Covenant Agreement must be substantially similar to the Maintenance
Covenant Agreement attached hereto and incorporated herein by this reference as Exhibit
"K"".
"Maintenance Class" means and refers to the maintenance class provided and conducted
by the Contractor pursuant to the Homebuyer Education Program Agreement, dated as of
August 2nd, 2010, by and between the Agency and the Contractor. The Qualified
Homeowner is required to attend the Maintenance Class after the Agency has approved
the Loan to a Qualified Homeowner. In the Maintenance Class, the Qualified
Homeowner shall learn, without limitation, to properly maintain the Qualified
Homeowner's Home and/or the Improvements to be constructed, installed, performed and
completed thereon.
"Note" means and refers to the Promissory Note Secured by Deed of Trust in the amount
of the Loan made by the Agency to and for the benefit of the Qualified Homeowner. The
Note shall be executed by the Qualified Homeowner and the obligations of the Note shall
be secured by the Deed of Trust. The outstanding principal balance of the Note shall
accrue simple interest at the rate of three percent (3%) per annum. No periodic payments
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of principal and interest or of interest-only shall be due and payable by the Qualified
Homeowner to the Agency during the term of the Note. The outstanding principal
amount of the Note, all accrued and unpaid interest and all other fees, charges and
amounts due under the Note, under the Deed of Trust and under the other Loan
Documents (the "Loan Payoff') shall be payable by the Qualified Homeowner to the
Agency on the date that: (i) the Qualified Homeowner is in default under the Loan
Documents, subject to any applicable cure period, (ii) the Qualified Homeowner
refinances the Loan, or (iii) on the date that the Qualified Homeowner sells, conveys or
transfers the Home to an unauthorized third person in violation of the Loan Documents; .
The Note shall be substantially similar to the Note attached hereto and incorporated
herein by this reference as Exhibit "L".
"Program" means and refers to the program created, administered and maintained by or
for the Agency in connection with the Loan, the disbursement by the Agency to the
Contractor of the Loan Funds to or for the benefit of each Qualified Homeowner in
accordance with this Agreement and the performance and completion by the Contractor
of the Services. The Contractor shall offer the Program to Qualified Homeowners in the
specific Target Area as designated in Exhibit "M" (the "Target Area") during the term of
this Agreement. The Contractor shall offer the Program on an as-needed, first-come,
first-served basis, to Qualified Homeowners in the Target Area within the City for the
term of this Agreement. However, in case of an emergency, of an urgent need or of a
life-threatening situation, the Contractor may process a Loan Application ahead of other
Loan Applications subject to the approval by the Executive Director.
"Project" means and refers to the construction, the installation and/or the completion of
the Improvements from the use of the Loan Funds and of the Grant Improvements from
the use of the Grant Funds.
"Qualified Homeowner" means and refers to: a person or household which (i) owns and
occupies its Home as its principal residence within the City or within the Target Area for
at least twelve (12) continuous months preceding the date of submission of its Loan
Application to the Contractor, (ii) has a personal or household income level, adjusted for
family size, during the twelve (12) months preceding the date of submission of its Loan
Application to the Contractor within the ranges of income for low-moderate income
households, adjusted for family size, as set forth in Exhibit "A", (iii) must complete,
execute and submit the Loan Application to the Contractor, (iv) must agree to attend the
Maintenance Class conducted by the Contractor, (v) must agree to live in its Home, as its
principal residence, for not less than ten (10) years after the recordation of the Deed of
Trust and the Maintenance Covenant Agreement in the County Recorder's Office, (vi)
must execute and acknowledge, where appropriate, all Loan Documents, (vii) must agree
to agree to maintain its Home pursuant to the Maintenance Covenant Agreement for a
period of ten (10) years following the recordation of such Maintenance Covenant
Agreement in the County Recorder's Office, and (viii) must not have received any grant
or any loan from the Agency for a period of ten (10) years prior to the submission by the
Qualified Homeowner to the Agency and/or to the Contractor of the Loan Application.
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On a case-by-case basis, the Executive Director of the Agency, in its sole and absolute
discretion, may waive this 12 continuous months residency requirement.
"Senior Deed of Trust" means and refers to the senior deed of trust executed and
acknowledged by the Qualified Homeowner. The Senior Deed of Trust secures the
obligations of the Senior Promissory Note and of the Senior Loan and encumbers the
Home.
"Senior Lender" means and refers to an institutional lender, including, without limitation,
any bank, savings bank, savings and loan association, insurance company, credit union or
other lender licensed to conduct business in the State of California, approved by the
Agency in its sole and absolute discretion and making the Senior Loan to the Qualified
Homeowner.
"Senior Loan" means and refers to the loan made by the Senior Lender to the Qualified
Homeowner. The Senior Loan is evidenced by the Senior Promissory Note and is
secured by the Senior Deed of Trust encumbering the Home owned by the Qualified
Homeowner.
"Senior Loan Documents" mean and refer to the Senior Promissory Note, the Senior
Deed of Trust and all other instruments, documents, agreements, guarantees and/or
certificates evidencing, securing, guaranteeing or relating to the Senior Loan.
"Senior Promissory Note" means and refers to the Senior Promissory Note executed by
the Qualified Homeowner in favor of the Senior Lender. The Senior Promissory Note is
secured by the Senior Deed of Trust, which Senior Deed of Trust encumbers the Home
owned by the Qualified Homeowner.
"Services" mean and refer, without limitation, to the Program ongmation, the
preparation, execution and delivery of the Loan Documents, the Loan Fund disbursement
control, related accounting, Work monitor (course of construction builder contract)
services and other services to be provided by the Contractor to or for the benefit of the
Agency in accordance with this Agreement. The various elements of the Services are
more fully set forth in the "Scope of Services" attached hereto as Exhibit "c." For each
year of the Agreement, the Contractor will attempt to approve complete, process and
finalize up to ten (10) Loans to Qualified Homeowners in the Target Area.
"Target Area" means and refers to the specific area, areas, neighborhood or
neighborhoods in the City, as designated in Exhibit "M", in which the Agency has
instructed the Contractor to offer the Program to Qualified Homeowners to better
maximize the effectiveness of the Loan Funds. In the absence of specific direction from
the Executive Director of the Agency, the Contractor shall offer the Program on an as-
needed, first-come, first-served basis, to Qualified Homeowners within the Target Area.
However, in the case of an emergency, of an urgent need or of a life-threatening situation,
the Contractor may process a Loan Application ahead of other Loan Applications subject
to the approval of the Executive Director.
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"Work" means and refers, without limitation, to the Improvements, or any part thereof, to
be constructed, installed, performed and/or completed by a state-licensed General
Contractor on or in connection with a Home pursuant to the terms, covenants and
conditions of the General Contractor Agreement. Only the Improvements and/or the
items of Work set forth in the General Contractor Agreement shall be authorized for
payment by the Contractor, up to the maximum amount authorized under the terms of the
Program for such Improvements, or any part thereof. Any costs of Improvements and/or
of Work in excess of the maximum amount of the Program (which are not the fault of
such General Contractor) shall be paid for by the Qualified Homeowner unless approved
in writing by the Executive Director.
Section 2.
Contractor and the
Agreement.
PERFORMANCE BY CONTRACTOR AND BY AGENCY. The
Agency agree to perform the terms, covenants and conditions of this
Section 3. SCOPE OF SERVICES. The Contractor agrees to provide the Services
to the Agency as set forth herein, as described in the Scope of Services, attached and
incorporated as Exhibit "C". Promptly following the date of approval of this Agreement by the
governing board of the Agency, the Contractor, without limitation, shall or will continue to:
(A) cause the Loan Disbursement Account to be established, or maintained, and the
general form of an FDIC - insured deposit account agreement acceptable to the Agency to
be fully executed by the Contractor, by the depository institution and by the Agency
within thirty (30) calendar days following the date of approval of this Agreement;
(B) continue to use the general form of the Loan Application in connection with an
application by a Qualified Homeowner for the approval by the Agency to the Qualified
Homeowner of the Loan under the Program in accordance with this Agreement. The
applicant for the Loan must submit to the Contractor federal and state income tax returns
filed by the applicant with the appropriate taxing authorities for the past two (2) years
which tax returns must be acceptable to the Contractor in its sole and absolute discretion;
(C) subject to the completion of the tasks described in Section 3(A) and in Section
3(B) above, continue the process of receiving and reviewing Loan Applications and
provide the Services as provided for in the Agreement. The Contractor shall offer the
Program to Qualified Homeowners in the Target Area on an as-needed, first-come, first-
served basis; provided, however, in the case of an emergency, of an urgent need or of a
life-threatening situation, the Contractor may process a Loan Application ahead of other
Loan Applications subject to the approval of the Executive Director;
(D) transmit a copy of a completed set of the Loan Documents to the Executive
Director of the Agency, together with: (i) a recommendation from the Contractor to the
Agency to approve the Loan Application and the Loan to the Qualified Homeowner, and
(ii) a request from the Contractor to the Agency for a transfer of the Loan Funds by the
Agency for the account of the Qualified Homeowner. The Executive Director shall either
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authorize the funding of such Loan or reject the request for funding on behalf of the
Agency within ten (10) business days of receipt from the Contractor. Any rejection of a
Loan Application shall be in writing and shall state the reasons for such action. Each
acceptance of a Loan Application by the Agency shall be evidenced by the signature of
the Executive Director of the Loan Documents, where designated. All Loan Documents
shall be executed, acknowledged, where designated, and completed by the Qualified
Homeowner and by the Contractor, and the disbursement of Loan Funds by the Agency
to or for the benefit of the Qualified Homeowner shall occur within sixty (60) calendar
days following the date of submission by the Contractor to the Executive Director of the
funding request, or the Loan Documents shall be of no further force or effect;
(E) no fees, charges or expenses shall be payable by any applicant to the Contractor
or to the Agency for a Loan, except from the Loan Funds, nor shall the Contractor charge
a Qualified Homeowner for any cost or service in connection with the origination or
subsequent administration of the Loan during the time the Improvements and/or the Work
is constructed, installed, performed and/or completed at the Home, except for the
Maintenance Class fee, or as authorized under the Program by the Executive Director;
(F) instruct the Executive Director to transfer the Loan Funds for the account of each
Qualified Homeowner to the Loan Disbursement Account as set forth in Section 3(D),
above, upon confirmation by the Contractor that the Loan Documents for the Program are
executed and complete and that the Deed of Trust and the Maintenance Covenant
Agreement (and any other documents to be recorded in the County Recorder's Office) are
ready for recordation in the County Recorder's Office. The Contractor shall coordinate
the issuance of the policy of title insurance in favor of the Agency by the title insurance
company with the recordation of the Deed of Trust and of the Maintenance Covenant
Agreement;
(G) deliver a fully executed and acknowledged, where designated, original set of the
Loan Documents for each Loan (except for the Deed of Trust and for the Maintenance
Covenant Agreement which documents shall be recorded by the Contractor on behalf of
the Agency in the County Recorder's Office) to the Agency upon request of funding and
transfer of the Loan Funds for the account of the Qualified Homeowner to the Loan
Disbursement Account;
(H) verify that no Loan Funds are disbursed from the Loan Disbursement Account for
the account of a Qualified Homeowner except: (i) to pay a state-licensed General
Contractor and/or state-licensed subcontractor for the Improvements and/or for the Work
constructed, installed, performed and/or completed at the Home pursuant to the General
Contractor Agreement (less a ten percent (10%) retention pending completion of the
Improvements and/or of the Work and final executed written release of all mechanics and
materials liens from the General Contractor and/or from all subcontractors). No
disbursement of the Loan Funds from the Loan Disbursement Account shall be
authorized for any building materials or equipment items which are not physically
delivered at the Home before the date of payment of such Loan Funds to the General
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Contractor and/or to the subcontractor; or (ii) to pay a Loan title fee or cost amount
expressly authorized in writing by the Executive Director;
(I) prepare and maintain a Loan Funds disbursement ledger for all payments
authorized and made by the Contractor to the General Contractors and/or to the
subcontractors for the account and debit to each Qualified Homeowner under each Loan
made by the Agency to or for the benefit of the Qualified Homeowner in accordance with
this Agreement. Such ledger shall show each payment by date and reference the
particular Loan, the Loan Documents and the name of the Qualified Homeowner to
which it corresponds. Such ledger shall also include a monthly starting and ending
balance for the Loan Disbursement Account, a final reconciliation of the adjusted balance
of each Loan upon the completion of the Improvements and/or of the Work, and such
other accounting information as the Executive Director may request. A copy of such
ledger shall be submitted to the Executive Director each month with the first such
monthly submittal due on the first day of the next month following the date of the initial
deposit of the Loan Funds by the Contractor and/or the Agency into the Loan
Disbursement Account;
(J) No Improvements and/or Work shall be authorized for payment by the Contractor
unless the Loan Documents are complete and the Contractor has received a fully
executed copy of the General Contractor Agreement by and between the General
Contractor and the Qualified Homeowner. Once the Improvements and/or the Work has
commenced on a particular Home, neither the Qualified Homeowner, the General
Contractor nor the subcontractor shall authorize an amendment or modification of such
contract to include any item of Work, which is not eligible for payment using the Loan
Funds under the terms and conditions of the Loan under the Program. Each such contract
by and between the General Contractor and the Qualified Homeowner, the General
Contractor and the subcontractor, and/or the subcontractor and the Qualified Homeowner
shall include a section, which recites the words of the first two (2) sentences of this
Section 3(1).
Section 4. TIME OF PERFORMANCE OF SERVICES. The Services to be
performed hereunder by the Contractor shall be undertaken and completed in such sequence as to
assure expeditious completion and to best carry out the purposes of the Program and this
Agreement. All Services required hereunder shall begin upon the execution of this Agreement.
The minimum number of loans required annually under this Agreement is 10/year.
Section 5. TERM OF AGREEMENT. This Agreement shall take effect upon the
approval by the governing board of the Agency and the complete execution by the parties (the
"Effective Date"). The term of this Agreement shall be for three (3) years from the Effective
Date through June 30th, 2013; provided, however, that each year as part of the Agency's budget
process, Agency staff shall review the Contractor's performance under this Agreement,
including, but not limited to whether goals have been met as shown by the quarterly updates. In
the event the Agency determines that the Contractor's goals need to be modified as set out in this
Agreement, the Agency may modify the goals and compensation therefore. Notwithstanding, in
the event that HUD terminates or reduces funding for this program, this Agreement may be
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adjusted or terminated accordingly. Any increase in goals or funding is subject to Section 6(C)
below.
Section 6.
COMPENSATION PAYABLE BY AGENCY TO CONTRACTOR.
(A) The Agency shall annually compensate the Contractor for the performance of the
Services using the Low-Moderate Income Housing Funds in accordance with the following
schedule:
15% of the Loan Funds disbursed
by the Contractor not to exceed an
annual amount of $37,500
Annual Program Administration Fee for
CONTRACTOR
$250,000
Single Family Residence Rehabilitation Loan
Program
$287.500
(B) From and after the Effective Date of this Agreement and for the remaining term of
this Agreement, the Program Administration Fee payable by the Agency to the Contractor as
compensation for Services performed by the Contractor under this Agreement shall be paid by
the Agency directly to the Contractor upon receipt by the Agency of a corrected invoice and the
Loan Funds disbursement ledger (the "Loan Funds Disbursement Ledger") which shows all Loan
Fund payments authorized by the Agency and disbursed by the Contractor to the General
Contractors and/or to the subcontractors under this Agreement for which the Contractor has not
been paid by the Agency. The Contractor may not invoice the Agency more than once per
month for the Loan Funds disbursed by the Contractor under this Agreement and the Agency
shall pay to the Contractor the correct amount identified on the invoice within thirty (30)
calendar days after the receipt by the Agency of the following: (i) a corrected invoice, and (ii)
the Loan Funds Disbursement Ledger. The Program Administration Fee shall be 15% of the
Loan Funds disbursed by the Contractor under this Agreement and shall not exceed Thirty-Seven
Thousand Five Hundred Dollars ($37,500), in the aggregate, for any given year.
(C) Notwithstanding the foregoing, in the event the Contractor has the opportunity to
exceed ten (l0) Loans in any given year, additional Loan Funds would need to be procured in
order to fund any additional Loans made by the Contractor under this Agreement. The Agency
will exercise its reasonable efforts to amend this Agreement, in writing, and to obtain additional
Loan Funds to fund additional Loans, in excess of ten (l0) Loans, by the Contractor for that year.
The Agency makes no warranty, no representation and no covenant to the Contractor that the
Agency will be able to obtain any additional Loan Funds to fund any additional Loans under this
Agreement.
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Section 7. PERSONNEL OF CONTRACTOR. The Contractor represents that it
has, or will secure at its own expense, all personnel required to perform the Services. All of the
Services required hereunder will be performed by persons who are either employed by or under
the supervision and control of the Contractor, and all personnel engaged in the Services shall be
fully competent and qualified to perform such Services.
Section 8. INDEPENDENT CONTRACTOR. All acts of the Contractor and all
others acting on behalf of the Contractor relating to the performance of this Agreement, shall be
performed as independent contractors and not as agents, officers, or employees of the Agency.
The Contractor has no authority to bind or incur any obligation on behalf of the Agency. The
Contractor has no authority or responsibility to exercise any right or power vested in the Agency.
No agent, officer, or employee of the Agency shall be considered an agent or employee of the
Contractor. It is understood by both the Contractor and the Agency that this Agreement shall not
under any circumstance be construed or considered to create an employer-employee relationship
or a joint venture as between the Contractor and the Agency. The Contractor is and at all times
during the Term of this Agreement shall represent and conduct itself as an independent
contractor and not as an agent or employee of the Agency. The Contractor shall be responsible
to the Agency only for the requirements and results specified in this Agreement, and except as
expressly provided in this Agreement, shall not be subject to control by the Agency with respect
to the physical action or activities of the Contractor in fulfillment of this Agreement. The
Contractor has control over the manner and means of performing the Services under this
Agreement so long as consistent with the requirements of the Program. The Contractor is
permitted to provide services to others during the same period Services are provided to the
Agency under this Agreement. If necessary, the Contractor has the responsibility for employing
other persons or firms to assist the Contractor in fulfilling the terms and obligations under this
Agreement. If in the performance of this Agreement any third persons are retained as
subcontractors by the Contractor, such persons shall be entirely and exclusively under the
direction, supervision, and control of the Contractor. All terms of employment including hours,
wages, working conditions, discipline, hiring, and discharging or any other term of employment
or requirements of law shall be determined by the Contractor. The Contractor hereby agrees to
indemnify, defend (if requested by Agency), protect and hold the Agency harmless from any and
all claims that may be made against the Agency or based upon any contention by any employee
of the Contractor or by any third party that an employer-employee relationship or joint venture
exists between any person or entity and the Agency, by reason of the performance of any of the
Services under this Agreement.
Section 9. PAYMENT OF AND TRANSFER OF LOAN FUNDS TO LOAN
DISBURSEMENT ACCOUNT. The Agency shall promptly honor each request by the
Contractor for the Agency to transfer Loan Funds to the Contractor who will in turn deposit the
Loan Funds to the Loan Disbursement Account to fund each approved Loan as submitted by the
Contractor to the Agency under Section 3(D). Within sixty (60) calendar days following receipt
of each request for remittance of the Loan. Funds, the Agency shall transfer by bank check to the
Contractor such Loan Funds to use as provided herein.
Section 10.
AUTOMOBILE
COMMERCIAL GENERAL LIABILITY
INSURANCE. WORKERS' COMPENSATION
13
INSURANCE.
INSURANCE.
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EMPLOYER'S LIABILITY INSURANCE. ERRORS AND OMISSIONS AND
PROFESSIONAL LIABILITY INSURANCE.
(A) The Contractor shall obtain and keep in force during the term of this Agreement,
at its sole cost and expense, the following insurance policies: (i) a commercial general liability
policy of insurance with coverage at least as broad as "Insurance Services Office Commercial
General Liability Form (G0001)", in the amount of One Million Dollars ($1,000,000) combined
single limit per occurrence, naming the Agency and the City and the elected officials, officers,
employees, attorneys and agents of each of them as additional insureds (collectively, the
"Additional Insureds") with said insurance covering comprehensive general liability including,
but not limited to, contractual liability, assumed contractual liability under this Agreement, acts
of subcontractors, premises-operations, explosion, collapse and underground hazards, if
applicable, broad form property damage, and personal injury including libel, slander and false
arrest, (ii) comprehensive automobile liability insurance covering owned, non-owned and hired
vehicles by or for the Contractor, combined single limit in the amount of One Million Dollars
($1,000,000) per occurrence, naming the Additional Insureds as additional insureds on each
automobile insurance policy, (iii) workers' compensation insurance in such insurance coverage
amounts as statutorily required, or similar insurance in form and amounts required by law, and
employer's liability insurance, combined single limit in the amount of One Million Dollars
($1,000,000), and (iv) errors and omissions and professional liability, combined single limit in
the amount of One Million Dollars ($1,000,000) per occurrence.
(B) Any and all insurance policies required hereunder shall be obtained from
insurance companies admitted in the State of California and rated at least A: XII in the most
current Best's Key Rating Insurance Guide. In no event shall the Contractor be permitted or
entitled to assign to any third party rights of action, which the Contractor may have against the
Agency. All said insurance policies shall provide that they may not be canceled unless the
Agency and the City receive written notice of cancellation at least thirty (30) calendar days prior
to the effective date of cancellation. Any and all insurance obtained by the Contractor shall be
primary to and shall not be contributing with any insurance carried by the Agency or by the City
whose insurance shall be considered excess insurance only. Any insurance which the Agency
and/or City may otherwise carry, including self insurance, for all purposes of this Agreement
shall be separate and apart from the requirements of this Agreement. Legal counsel for the
Agency must approve each insurance policy required in Section 10(A) of this Agreement. The
Contractor waives subrogation and agrees that the Contractor, the Agency and the City are co-
insured. The insurer shall have no right of subrogation against the Agency, against the City or
against any of the other Additional Insureds. The Additional Insureds shall be named as
additional insureds on each insurance policy.
(C) All insurance which the Contractor shall carry or maintain pursuant to this Section
10 shall be in such form, for such amounts, for such periods of time as the Agency may require
or approve.
(D) The Contractor shall deliver or cause to be delivered to the Agency concurrently
upon the execution of this Agreement an endorsement of the insurance policies required in this
Section 10(A) of this Agreement evidencing the existence of the insurance coverage required by
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the Agency under Section 10(A) of this Agreement and shall also deliver, no later than thirty
(30) calendar days prior to the expiration of any insurance policy, a certificate of insurance
evidencing each renewal policy covering the same risks. The Agency may request the
Contractor to provide, and the Contractor shall immediately provide, additional or greater
insurance coverage, in such amounts and with such deductibles as reasonably determined by the
Agency, at the cost and the expense of the Contractor.
Section 11. INDEMNIFICATION.
(A) The Contractor agrees to indemnify, defend with legal counsel reasonably
acceptable to the Agency, protect and hold the City and the Agency, and their respective elected
officials, directors, officers, members, managers, consultants, contractors, employees, agents and
attorneys, and the successors and assigns of each of them (singularly and collectively, the
"Indemnified Parties" which defined term shall also includes the City and the Agency), harmless
from and against all actions, causes of action, claims, demands, liabilities, damages, losses,
liabilities, obligations, judgments, suits, costs, expenses and fees (including, without limitation,
reasonable attorneys' fees, court costs and expert fees of any nature whatsoever), now or
hereafter arising from or related to: (i) any act or omission of the Contractor and/or of any of the
Contractor's directors, officers, members, managers, consultants, contractors, subcontractors,
materialmen, laborers, any other person or entity furnishing or supplying work, services, goods,
or supplies in connection with the performance of this Agreement, employees and agents, and the
successors and/or assigns of each of them (singularly and collectively, the "Indemnifying
Parties" which defined term shall also include the Contractor), in performing, or failing to
perform, its obligations hereunder, (ii) any default by the Contractor under this Agreement,
subject to any applicable cure period, (iii) any violation by any of the Indemnifying Parties of
any Laws, (iv) any warranty or representation made by the Contractor to the Agency in this
Agreement that is or becomes false and untrue, (v) death, bodily injury and/or personal injury to
any person, (vi) any destruction, loss or damage to real property or personal property, (vii) the
presence of any Hazardous Substances at, on, in, above, under or about any Home owned by a
Qualified Homeowner resulting, directly or indirectly, from the acts or omissions of any
Indemnifying Parties, and/or (viii) the aggravation of any environmental condition by any
Indemnifying Parties at, on, in, above, under or about any Home owned by a Qualified
Homeowner. Without limiting the Contractor's indemnification of the Indemnified Parties, the
Contractor shall provide and maintain, at its sole cost and expense during the term of this
Agreement, the insurance described in Section 10(A) of this Agreement. Such insurance shall be
provided by insurer(s) satisfactory to the Agency and evidence of such insurance satisfactory to
the Agency shall be delivered to the Executive Director no later than the effective date of this
Agreement.
(B) The Agency shall indemnify, defend (if requested by the Contractor) and hold
harmless the Contractor, its agents, officers, and employees, from all claims, loss, demands and
liability for damages for personal injury, bodily injury or property damage suffered by reason of
any act or omission of the Agency or any of its officers or employees or agents under this
Agreement except where such action or omission giving rise to such a claim is caused by or is
the result of an action, omission or request of the Contractor and/or of any of the other
Indemnifying Parties, or is alleged to arise out of the execution of this Agreement. The
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provIsIOns of Section 11(A) and Section 11(B) shall survive the execution, delivery,
performance, expiration or early termination of this Agreement.
Section 12. DEFAULTS AND BREACH - GENERAL. The failure or delay by
either party to perform any material term or provision of this Agreement shall constitute a default
hereunder; provided, however, that if the party who is otherwise claimed to be in default by the
other party commences to cure, correct or remedy the alleged default within thirty (30) calendar
days after receipt of written notice specifying such default and shall diligently complete such
cure, correction or remedy, such party shall not be deemed to be in default hereunder. A default
shall also occur under this Agreement whenever a representation and/or warranty made in this
Agreement is or becomes false or untrue. A default shall also occur under this Agreement
whenever a party files, or has filed against it, a petition in bankruptcy, is or becomes insolvent, is
unable to pay its debts as they mature, assigns its assets for the benefit of creditors, or a receiver,
trustee or custodian is appointed by a court to exercise control over all or substantially all of the
assets of the party and such receiver, trustee or custodian is not discharged by the court within
sixty (60) calendar days after said appointment date. The party which may claim that a default
has occurred shall give written notice of default to the party in default specifying the alleged
default. Delay in giving such notice shall not constitute a waiver of any default nor shall it
change the time of default; provided, however, the injured party shall have no right to exercise
any remedy for a default hereunder without delivering the written default notice as specified
herein. Any failure or delay by a party in asserting any of its rights and remedies as to any
default shall not operate as a waiver of any default or of any rights or remedies associated with a
default, and the rights and remedies of the parties are cumulative and the exercise by either party
of one or more of such rights or remedies shall not preclude the exercise by it, at the same or
different times, of any other rights or remedies for the same default or any other default by the
other party. In the event that a default of either party may remain uncured for more than thirty
(30) calendar days following written notice, as provided above, a "breach" shall be deemed to
have occurred. In the event of a breach, the party who is not in default shall be entitled to
terminate this Agreement and seek any appropriate remedy or damages by initiating legal
proceedings. If any action or proceeding is brought to enforce the terms hereof or declare rights
hereunder, it shall be brought in the Superior Court of the County of San Bernardino, San
Bernardino District, State of California. The governing law to be applied in any such action or
proceeding shall be the law of the State of California. The prevailing party in any such legal
proceedings shall be entitled to recover as an element of its costs of bringing such suit, and not as
part of its damages, its reasonable attorneys' fees, court costs, expert witness fees and consultant
fees and costs. The costs, salary and expenses of the City Attorney and members of his office in
such action or proceeding on behalf of the Agency shall be considered as "attorneys' fees" for
purposes of this Section.
Section 13. NONDISCRIMINATION. During the Contractor's performance of the
Services, the Contractor shall not discriminate on the grounds of race, religion, creed, color,
national origin, age, ancestry, physical handicap, medical condition, marital status, sex, or sexual
orientation in the performance of the Services, including, without limitation, in the selection and
retention of employees, General Contractors and subcontractors and the procurement of materials
and equipment, except as provided in Section 12940 of the California Government Code.
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Section 14. CONFLICT OF INTEREST. The Contractor warrants, by execution of
this Agreement, that it has no interest, present or contemplated, in the Program or in any Home
benefited thereby or Work performed on any Home using the Loan and the Loan Funds. The
Contractor further warrants that it owns or possesses no interest in real property, business
interests or owner of income (other than such amounts of compensation payable by the Agency
to the Contractor for the Services under this Agreement) that will be affected by the Program or,
alternatively, if such interest exists or arises the Contractor will promptly file with the Agency an
affidavit disclosing any such interest.
Section 15. AMENDMENTS. All amendments to this Agreement shall be subject to
the approval of both parties in the sole discretion of each of them, mutual and in writing. The
Executive Director of the Agency is authorized to make non-substantive changes, clarifications,
corrections to the Agreement, including budget line item adjustments, provided such actions are
approved by legal counsel for the Agency and do not increase the Agency's monetary annual
appropriation to the Contractor as approved by the governing board of the Agency.
Section 16. TERMINATION.
(A) This Agreement may be terminated for any reason by either party who is not then
in default upon ten (10) calendar days prior written notice to the other party. In such event, the
Contractor shall be entitled to receive compensation for Services pro-rated through the date of
such termination, provided that the Services have been rendered.
(B) In the event of a termination of the Agreement as a result of a breach, the rights
and duties of the parties shall be as set forth in Section 12.
(C) In the event of any termination of this Agreement, the Contractor shall promptly
return all Loan Funds that have been disbursed by the Agency to the Contractor with the
exception of any Loan Funds that have been properly disbursed by the Contractor to or for the
benefit of one or more Qualified Homeowners under this Agreement, without charge or expense
to the Agency.
Section 17. ASSIGNMENT. It is mutually understood and agreed that this
Agreement shall be binding upon the Agency and its successors and assigns and upon the
Contractor and its successors and assigns. The Agency may assign this Agreement, without
obtaining the prior consent or approval of the Contractor. The Contractor may not assign this
Agreement without obtaining the prior written consent of the Agency, which written consent
may be given or withheld by the Agency in its sole and absolute discretion. Any assignment or
attempt to assign this Agreement by the Contractor shall be void.
Section 18. NOTICES. Communications, notices, bills, invoices or reports required
by this Agreement shall be in writing and shall be deemed to have been given when actually
delivered, if given by hand delivery or transmitted by overnight courier service, or if mailed,
three (3) business days after being deposited in the United States mail, postage prepaid, to the
address noted below:
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Agency
Redevelopment Agency
of the City of San Bernardino
Attention: Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 92401
Phone: (909) 663-1044
Fax: (909) 888-9413
CDC/2010-43
Contractor
Neighborhood Housing Services of
the Inland Empire, Inc.
Attention: Executive Director
1390 North "D" Street
San Bernardino, California 92405
Phone: (909) 884-6891
Fax: (909) 889-4085
Either party may change its address for receipt of written notice by notifying the other
party in writing of a new address for delivering notice to such party.
Section 19. REPRESENTATION AND WARRANTY OF CONTRACTOR. The
Contractor hereby represents and warrants to the Agency as follows:
(A) The Contractor is a California nonprofit corporation duly organized, existing, and
authorized to transact business in California;
(B) the corporate charter and by-laws of the Contractor authorize the Contractor to
provide the Services to the Agency and the governing board and membership of the Contractor
have previously taken all action necessary to authorize the execution of this Agreement by the
Contractor;
(C) the Contractor is qualified to perform the Services and shall timely perform and
complete the Services in a professional manner.
Section 20. LOAN FUNDS AND LOAN DOCUMENTS ARE THE PROPERTY
OF THE AGENCY. The Loan Documents for each Loan are the property and asset of the
Agency. The Contractor has no property interest in any such Loan Documents and the
Contractor shall not transfer, assign or pledge as collateral or claim any other security interest in
any such Loan Documents. All of the Loan Documents are the property of the Agency, and the
Contractor shall maintain all such Loan Documents in its possession as confidential consumer
business records of the Qualified Homeowner. All Loan Funds disbursed by the Agency to the
Contractor for the benefit of a Qualified Homeowner are the property of the Agency until paid by
the Contractor to the General Contractor upon the completion of the Work at the Home for the
account of the Qualified Homeowner under the applicable Loan Documents.
Section 21. NON-ELIGIBILITY OF HOMEOWNER. Once the Agency has
approved the Loan Application for the Qualified Homeowner and has disbursed the Loan Funds
to the Contractor for the benefit of the Qualified Homeowner under this Agreement, the
Qualified Homeowner now or hereafter shall have no right to receive any other grant or loan
being provided by the Agency to the general public under any grant or loan program, including,
without limitation, any grant being offered by the Agency under the Mobile Home Grant
Program or any loan being offered by the Agency to the general public under the Single Family
Rehabilitation Loan Program until: (i) ten (l0) years after the date that the Agency has paid the
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last installment of any grant funds or Loan Funds to the Contractor for the benefit of the
Qualified Homeowner under this Agreement, and (ii) the Qualified Homeowner has paid in full
the Loan to the Agency in accordance with the Loan Documents.
Section 22. GENERAL PROVISIONS. This Agreement constitutes the sole
agreement between the parties. All prior conversations, agreements or representations relating
hereto are integrated in this Agreement. No oral agreement, representation or warranty shall be
binding upon the parties. If any provision of this Agreement shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining portions of this
Agreement shall not in any way be affected or impaired thereby. Failure of any party to enforce
any provision of this Agreement shall not constitute a waiver of the right to compel enforcement
of the same provision or any remaining provisions of this Agreement. Headings at the beginning
of each section or subsection are solely for the convenience of the parties and are not a part of
this Agreement. Whenever required by the context of this Agreement, the singular shall include
the plural and the masculine shall include the feminine and vice versa. This Agreement shall not
be construed as if it had been prepared by one of the parties, but rather as if all parties had
prepared the same. Unless otherwise indicated, all references to sections are to this Agreement.
All exhibits referred to in this Agreement are attached hereto and incorporated herein by this
reference. If the date on which any action is required to be performed under the terms of this
Agreement is not a business day, the action shall be taken on the next succeeding business day.
This Agreement may be executed in one or more counterparts each of which shall be an original
but all of which together shall constitute but one original Agreement. This Agreement may be
executed by facsimile signatures, and each facsimile counterpart when taken together shall be
deemed an original Agreement. Time is of the essence in this Agreement.
4814-7529-0118.1
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IN WITNESS WHEREOF, the Contractor and the Agency have caused this Agreement
to be duly executed on the date first above written.
AGENCY
Dated:
? hl/ 0
Redevelopment Agency of the
City of San Bernardino,
a public b~d. .~~..,..~o~ora~t...:~OlitiC
By: ~!Jl<.
Emil A. Marzullo, Interim Executive Director
Approved as to Form and Content:
\-~
Agency Cou se
CONTRACTOR
Neighborhood Housing Services
of the Inland Empire, Inc.,
a California non-profit corporation
Date:
g-5--/r)
By'. 7 ~~
,-L ;y yt:-
Name: L]r:tV,Li (2.(,\.1 f1~
Title: Executive Director I
By:
Name:
Title:
Date:
4814-7529-0118.1
20
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EXHIBIT" A"
2010 Income Limits
4814-7529-0118.1
21
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EXHIBIT "B"
Deed of Trust
4814-7529-0118.1
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Recording Requested By:
When Recorded Mail To:
REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
201 N "E" STREET, SUITE 301
SAN BERNARDINO, CA 92401-1507
ATTN: HOUSING & REDEVELOPMENT DEPT
DEED OF TRUST WITH ASSIGNMENTS OF RENTS
THIS DEED OF TRUST, made, <<Date>> between, <<PirmarvsFirstName)>
<<PirmarvsLastName>>, and <<JointFirstName>> <<JointLastName>> herein called TRUSTOR,
whose address is<<Address1 >>, <<Citv)>, <<State>> <<PostaICode>>, in which First American Title,
herein called TRUSTEE, and the Redevelopment Agency of the City of San Bernardino, a
public body, corporate and politic, herein called BENEFICIARY, Trustor irrevocably grants,
transfers and assigns to Trustee in Trust, with Power of Sale that property in City of San
Bernardino, County of San Bernardino, State of California, described as:
<<LotDiscribtiom). The legal description of the property is attached hereto and
incorporated herein by this reference as Exhibit "A".
Together with the rents, issues and profits thereof, SUBJECT, HOWEVER, to the right,
power and authority given to and conferred upon Beneficiary to collect and apply such rents,
issues and profits.
For the Purpose of Securing: 1. Payment of the sum of $ <<Amount>> with interest
thereon according to the terms of a promissory note or notes of even date herewith made by
Trustor, payable to order of the Beneficiary, and extensions or renewals thereof (singularly and
collectively, the "Note"); 2. The Performance of each agreement of Trustor incorporated by
reference or contained herein or reciting it is so secured; 3. Payment of additional sums and
interest thereon which may hereafter be loaned to Trustor, or his or her successors or assigns,
when evidenced by a promissory note or notes reciting that they are secured by this Deed of
Trust.
To protect the security of this Deed of Trust, and with respect to the property above
described, Trustor agrees:
(1) To keep said property in good condition and repair; not to remove or demolish
any building thereon; to complete or restore promptly and in good and workmanlike manner any
building which may be constructed, damaged or destroyed thereon and to pay when due all
claims for labor performed and materials furnished therefore; to comply with all laws affected
said property or requiring any alterations or improvements to be made thereon; not to commit or
permit waste thereof; not to commit, suffer or permit any act upon said property in violation of
law; to cultivate, irrigate, fertilize, fumigate, prune and do all other acts which from the character
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or use of said property may be reasonably necessary, the specific enumerations herein not
excluding the general.
(2) To provide, maintain and deliver to Beneficiary fire insurance satisfactory to and
with loss payable to Beneficiary. The amount collected under any fire or other insurance policy
may be applied by Beneficiary upon any indebtedness secured hereby and in such order as
Beneficiary may determine, or at option of Beneficiary the entire amount so collected or any part
thereof may be released to Trustor. Such application or release shall not cure or waive any
default or notice of default hereunder or invalidate any act done pursuant to such notice.
(3) To appear in and defend any action or proceeding purporting to affect the
security hereof or the rights or powers of Beneficiary or Trustee; and to pay all costs and
expenses, including cost of evidence of title and attorneys' fees in a reasonable sum, in any
such action or proceeding in which Beneficiary or Trustee may appear, and in any suit brought
by Beneficiary to foreclose this Deed of Trust.
(4) To pay: at least ten days before delinquency all taxes and assessments affecting
said property, including assessments on appurtenant water stock; when due, all encumbrances,
charges and liens, with interest, on said property or any part thereof, which appear to be prior or
superior hereto; all costs, fees and expenses of this Deed of Trust.
Should Trustor fail to make any payment or to do any act as herein provided, then
Beneficiary or Trustee, but without obligation so to do and without notice to or demand upon
Trustor and without releasing Trustor from any obligation hereof, may: make or do the same in
such manner and to such extent as either may deem necessary to protect the security hereof,
Beneficiary or Trustee being authorized to enter upon said property for such purposes; appear
in and defend any action or proceeding purporting to affect the security hereof or the rights or
powers of Beneficiary or Trustee; pay, purchase, contest or compromise any encumbrance,
charge or lien which in the judgment of either appears to be prior or superior hereto; and, in
exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable
fees. The costs, salary and expenses of the City Attorney and members of his office in
enforcing this deed of trust on behalf of the Beneficiary shall be considered as "attorneys' fees"
for the purposes of this paragraph.
(5) To pay immediately and without demand all sums so expended by Beneficiary or
Trustee, with interest from date of expenditure at the amount allowed by law in effect at the date
hereof, and to pay for any statement provided for by law in effect at the date hereof regarding
the obligation secured hereby any amount demanded by the Beneficiary not to exceed the
maximum allowed by law at the time when said statement is demanded.
(6) That any award of damages in connection with any condemnation for public use
of or injury to said property or any part thereof is hereby assigned and shall be paid to
Beneficiary who may apply or release such moneys received by him in the same manner and
with the same effect as above provided for disposition of proceeds of fire or other insurance.
(7) That by accepting payment of any sum secured hereby after its due date,
Beneficiary does not waive his right either to require prompt payment when due of all other
sums so secured or to declare default for failure so to pay.
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(8) That at any time or from time to time, without liability therefore and without notice,
upon written request of Beneficiary and presentation of this Deed of Trust and said note for
endorsement, and without affecting the personal liability of any person for payment of the
indebtedness secured hereby, Trustee may: reconvey any part of said property; consent to the
making of any map or plat thereof; join in granting any easement thereon; or join any extension
agreement or any agreement subordinating the lien or charge hereof.
(9) That upon written request of Beneficiary stating that all sums secured hereby
have been paid, and upon surrender of this Deed and said note to Trustee for cancellation and
retention and upon payment of its fees, Trustee shall reconvey, without warranty, the property
then held hereunder. The recitals in such reconveyance of any matters or facts shall be
conclusive proof of the truthfulness thereof. The grantee in such reconveyance may be
described as "the person or persons legally entitled thereto," Five years after issuance of such
full reconveyance, Trustee may destroy said note and this Deed of Trust (unless directed in
such request to retain them).
(10) That as additional security, Trustor hereby gives to and confers upon Beneficiary
the right, power and authority, during the default by Trustor in payment of any indebtedness
secured hereby or in performance of any agreement hereunder, to collect and retain either in
person, by agent, or by a receiver to be appointed by a court, and without regard to the
adequacy of any security for the indebtedness hereby secured, enter upon and take possession
of said property or any part thereof, in his own name sue for or otherwise collect such, rents,
issues, and profits, including those past due and unpaid, and apply the same, less costs and
expenses of operation and collection, including reasonable attorneys' fees, upon any
indebtedness secured hereby, and in such order as Beneficiary application thereof as aforesaid,
shall not cure or waive any default hereunder or invalidate any act done pursuant to such notice.
(11) That upon default by Trustor in payment of any indebtedness secured hereby or
in performance of any agreement hereunder, Beneficiary may declare all sums secured hereby
immediately due and payable by delivery to Trustee of written declaration of default and
demand for sale and or written notice of default and of election to cause to be sold said
property, which notice Trustee shall cause to be filed for record. Beneficiary also shall deposit
with Trustee this Deed of Trust, said note and all documents evidencing expenditures secured
hereby. After the lapse of such time as may then be required by law following the recordation of
said notice of default, and notice of sale having been given as then required by law, Trustee,
without demand on Trustor, shall sell said property at the time and place fixed by it in said notice
of sale, either as a whole or in separate parcels, and in such order as it may determine, at public
auction to the highest bidder for cash of lawful money of the United States, payable at time of
sale. Trustee may postpone sale of all or any portion of said property by public announcement
at such time and place of sale, and from time to time thereafter may postpone such sale by
public announcement at the time fixed by the proceeding postponement. Trustee shall deliver
to such purchaser its deed conveying the property so sold, but without any covenant or
warranty, express, or implied. The recitals in such deed of any matters or facts shall be
conclusive proof of the truthfulness thereof. Any person, including Trustor, Trustee, or
Beneficiary as hereinafter defined, may purchase at such sale. After deducting all costs, fees
and expenses of Trustee and of this Deed of Trust, including cost of evidence of title in
connection with sale, Trustee shall apply the proceeds of sale to payment of: all sums expended
under the terms hereof, not then repaid, with accrued interest at the amount allowed by law in
effect at the date hereof; all other sums then secured hereby; and the remainder, if any, to the
person or persons legally entitled thereto.
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(12) Beneficiary, or any successor in ownership of any indebtedness secured hereby,
may from time to time, by instrument in writing, substitute a successor or successors to any
Trustee named herein or acting hereunder, which instrument, executed by the Beneficiary and
duly acknowledged and recorded in the office of the recorder of the county or counties where
said property is situated, shall be conclusive proof of proper substitution of such successor
Trustee or Trustees, who shall, without conveyance from the Trustee predecessor, succeed to
all its title, estate, rights, powers and duties. Said instrument must contain the name of the
original Trustor, Trustee and Beneficiary hereunder, the book and pages where this Deed of
Trust is recorded and the name and address of the new Trustee.
(13) That this Deed of Trust applies to inure to the benefit of, and binds all parties
hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The
term Beneficiary shall mean the owner and holder, including pledges, of the note secured
hereby, whether or not named as Beneficiary herein. In this Deed of Trust, whenever the
context so requires, the masculine gender includes the feminine and/or neuter, and the singular
number includes the plural.
(14) That Trustee accepts this Deed of Trust when this Deed of Trust, duly executed
and acknowledged, is made a public record as provided by law. Trustee is not obligated to
notify any party hereto of pending sale under any other Deed of Trust or of any action or
proceeding in which Trustor, Beneficiary or Trustee shall be a party unless brought by Trustee.
Beneficiary may charge for a statement regarding the obligation secured hereby,
provided the charge thereof does not exceed the maximum allowed by laws.
The undersigned Trustor, requests that a copy of any notice of default and any notice of
sale hereunder be mailed to him or her at his or her address hereinbefore set forth.
Signature of Trustor
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STATE OF CALIFORNIA
COUNTY OF SAN BERNARDINO
ON
, 20_, before me,
personally appeared
{{ Sig naturePri marysname>>
({ Sig naturejointname>>
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s)
is/are subscribed to the within instrument and acknowledged to me that he/she/they executed
the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the
instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature
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Do Not Record
REQUEST FOR FULL RECONVEYANCE
TO: FIRST AMERICAN TITLE TRUSTEE:
The undersigned is the legal owner and holder of all indebtedness secured by the within
Deed of Trust. All sums secured by said Deed of Trust have been fully paid and satisfied; and
you are hereby requested and directed, on payment to you of any sums owing to you under the
terms of said Deed of Trust, to cancel all evidences of indebtedness, secured by said Deed of
Trust, delivered to you herewith, together with the said Deed of Trust, and to reconvey, without
warranty, to the parties designated by the terms of said Deed of Trust, all the estate now held by
you under the same.
Dated
By:
By:
Please mail Reconveyance to:
Do not lose or destroy this Deed of Trust OR THE NOTE which it secures. Both originals must
be delivered to the Trustee for cancellation before reconveyance will be made.
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Provisions for Deed of Trust
(Due on Sale Provisions)
In the event that the Trustor should sell, transfer, or otherwise convey the real property
securing the Note, whether voluntarily or by operation of law, or as a result of the death of the
Trustor, and whether by deed, contract of sale, or otherwise, or the agreement to do so, at any
time within the first ten (10) years after the execution by the Trustor of the Note, or the
refinancing by the Maker of the loan evidenced by the Note and secured by this Deed of Trust
or of a note and deed of trust encumbering the property described in Exhibit "A" and senior to
the Note and to the Deed of Trust, then all obligations secured by the Note, irrespective of the
maturity dates expressed therein, shall, at the option of the Beneficiary become immediately
due and payable.
In the event that the real property securing the Note which is now or hereafter may be
encumbered by this Deed of Trust shall cease to be the Trustor's primary residence, irrespective
of the maturity dates expressed in the Note, shall, at the option of the Beneficiary, immediately
become due and payable.
In the event that the Trustor shall further encumber the real property securing the Note,
or otherwise cause a reduction in priority which this Deed of Trust securing the Note enjoys as
of the date of its recordation, then all obligations secured by the Note, irrespective of the
maturity dates express therein, shall, at the option of the Beneficiary, immediately become due
and payable.
Initials:
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EXHIBIT "A"
Legal Description
4835-4625-0244.4
8
CDC/2010-43
EXHIBIT "c"
SCOPE OF SERVICES
(Description of Program)
A. Contractor's Administration Annual Fee
The Agency shall annually compensate the Contractor an amount not to exceed the total sum of
Thirty Seven Thousand Five Hundred Dollars ($37,500) for the administration and the
implementation of the Program herein and for the Services rendered under this Agreement,
subject to the annual approval and the appropriation by the United States Department of Housing
and Urban Development ("HUD").
Notwithstanding the foregoing, in the event the Contractor exceeds ten (10) Loans in any given
year, additional Loan Funds will need to be procured in order to fund any additional Loans made
by the Contractor under this Agreement. The Agency will exercise its reasonable efforts to
amend this Agreement, in writing, and to obtain additional Loan Funds to fund additional Loans,
in excess often (10) Loans, by the Contractor for that year. The Agency makes no warranty, no
representation and no covenant to the Contractor that the Agency will be able to obtain any
additional Loan Funds to fund any additional Loans under this Agreement.
From and after the Effective Date of this Agreement and for the remaining term of this
Agreement, the Program Administration Fee payable by the Agency to the Contractor as
compensation for the Services performed by the Contractor under this Agreement shall be paid
by the Agency directly to the Contractor upon receipt by the Agency of a corrected invoice and
the Loan Funds Disbursement Ledger which shows all Loan Fund payments authorized by the
Agency and disbursed by the Contractor to the General Contractors and/or to the subcontractors
under this Agreement for which the Contractor has not been paid by the Agency. The Contractor
may not invoice the Agency more than once per month for the Loan Funds disbursed by the
Contractor under this Agreement and the Agency shall pay to the Contractor the correct amount
identified on the invoice within thirty (30) calendar days after the receipt by the Agency of the
following: (i) a corrected invoice, and (ii) the Loan Funds Disbursement Ledger.
B. Sinele Familv Residence Rehabilitation Loan Proeram (the "Proeram") ($250.000)
The Contractor shall accept the Loan Applications from respective Qualified Homeowner
applicants to determine income and improvement eligibility (see Exhibit "A" to this Agreement),
to determine equity in the Home and to verify ownership and length of ownership by obtaining a
preliminary title report or other pertinent documentation from a reputable title company. The
Contractor shall offer the Program to Qualified Homeowners in the Target Area on an as needed,
first-come, first-served basis. However, in the case of an emergency, of an urgent need or of a
life-threatening situation, the Contractor may process a Loan Application ahead of other Loan
Applications subject to the approval by the Executive Director. The Improvements allowed
under the Program are described in Section "c" below of this Scope of Services.
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C. Elh:!ible Improvements Permitted under the Pro2:ram
The following types of Improvements are permitted in connection with the Program: (i) roof
repairs and re-roof or overlay, (ii) exterior and interior painting, including, without limitation,
lead testing, (iii) drought tolerant landscaping (irrigation system, with hydro seeds, sod or
artificial turf), (iv) window replacement, (v) carpet replacement and/or finished flooring
replacement, (vi) HV AC system, (vii) electrical work, (viii) Sewer Repairs, (ix) termite repairs,
(x) exterior concrete hardscape such as sidewalks, driveways, curbs, gutters, hand railings or
ramps, (xi) door or window screens repairs or replacements, (xii) tub, shower, toilet repairs or
replacements, (xiii) foundation or structural repairs, (xiv) fencing or (xv) installation of
alternative energy sources, including, without limitation, solar panels. The Improvements must
relate to health and safety code violations (i.e., blown sewer lines, septic tank destruction, etc.).
In connection with each Loan Application for Sewer Repairs, the Agency shall have the right to
determine whether or not such Sewer Repairs shall be made from funds disbursed by the Agency
from Loan Funds under the Program or from grant funds disbursed by the Agency to an applicant
under the Single Family Beautification Grant Program, or under any other then existing grant
program. Should the Agency determine that the Sewer Repairs will need to be disbursed by the
Agency from grant funds pursuant to the Single Family Beautification Grant Program, or any
other then existing grant program, the Contractor shall advise the applicant, in writing, that the
applicant will need to prepare, to execute and to submit a new grant application to the Contractor
under the Single Family Beautification Grant Program, or under any other then existing grant
program, which grant application, without limitation, shall request the Agency to make a grant to
the applicant to permit the applicant to make and to complete the Sewer Repairs.
The maximum amount of the Loan permitted under the Program is the Loan Amount per Home,
without the prior written approval of the Executive Director.
D. Applicant EIh?:ibilitv ReQuirements for the Pro2:ram
1. Qualified Homeowner must be an owner and occupant of the Home within the Target
Area, as its principal residence, for a minimum period of 12 continuous months preceding the
Loan Application; on a case-by-case basis, and depending on the circumstances, this residency
requirement may be waived by the Executive Director or his/her designee; the Contractor shall
obtain evidence of ownership and length of ownership and residency.
2. Qualified Homeowner must execute and complete a Loan Application and must deliver
and submit the Loan Application, as fully executed and completed, to the Contractor. The
Contractor shall receive, review, verify and approve or reject the Loan Application. If the Loan
Application is not acceptable to the Contractor, the Contractor shall notify the applicant in
writing within ten (10) business days from the receipt by the Contractor of the Loan Application
and the Contractor shall provide the applicant with the reasons for the rejection by the
Contractor.
3. Qualified Homeowner must have a personal or household income level, adjusted for
family size, during the twelve (12) months preceding the date of submission of the Loan
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Application to the Contractor within the ranges of income for low-moderate income households,
adjusted for family size, as set forth in Exhibit "A" to this Agreement.
4. Qualified Homeowner must agree to: (i) attend a four (4) hour Maintenance Class
conducted by the Contractor, (ii) live in the Qualified Homeowner's Home, as its principal
residence, for not less than ten (10) years after the recordation of the Maintenance Covenant
Agreement in the County Recorder's Office, and (iii) to maintain the Home in accordance with
the Maintenance Covenant Agreement for not less than ten (10) years after the recordation of the
Maintenance Covenant Agreement in the County Recorder's Office.
5. Qualified Homeowner must execute and acknowledge, where appropriate, the Loan
Documents. The Qualified Homeowner, without limitation, shall execute and notarize the Deed
of Trust and the Maintenance Covenant Agreement and the Contractor or the Agency shall
record, or shall cause the recordation of, the Deed of Trust and the Maintenance Covenant
Agreement in the County Recorder's Office.
6. Qualified Homeowner must not have received any grant or loan from the Agency for a
period of ten (10) years prior to the submission by the Qualified Homeowner to the Contractor
and/or to the Agency of the Loan Application.
E. Guidelines
The Contractor shall conduct, administer, implement, comply with and perform the following
guidelines in connection with the Program:
1. The Contractor shall administer and implement the Program herein and shall utilize the
applicable and pertinent sections of the Agency's Loan Policies and Procedures Manual for
guidance on processing and packaging all Loans under this Agreement, if applicable, under the
direction of the Executive Director.
2. The Contractor shall accept the Loan Applications from respective Qualified Homeowner
applicants to determine location, income and improvement eligibility, to determine equity in the
Home, and to verify ownership and length of ownership by obtaining a preliminary title report or
other pertinent documentation from a reputable title company. The Contractor shall offer the
Program to Qualified Homeowners in the Target Area on an as needed, first-come, first-served
basis. However, in the case of an emergency, of an urgent need or of a life-threatening situation,
the Contractor may process a Loan Application on an urgent basis ahead of other Loan
Applications subject to the approval of the Executive Director.
3. The Contractor shall inspect eligible Homes and properties to determine the type of
health and safety and code violation repair work needed, including asbestos and lead-based paint
removal, the age and overall condition of the Home and to ensure that all Homes repaired or
improved under the Program when completed are aesthetically pleasing and in compliance with
all Laws.
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4. The Contractor shall prepare and complete Work write-ups, cost estimates, and bid
packages for the Improvements to be constructed, installed, performed and completed for each
Qualified Homeowner's Home.
5. The Contractor shall ensure that all Improvements and/or Work constructed, installed,
performed and/or completed in connection with the Qualified Homeowner's Home shall be
constructed, installed, performed and completed by pre-qualified State licensed General
Contractors and/or State licensed subcontractors. The Contractor shall also require that each
General Contractor and/or subcontractor constructing, installing, performing and/or completing
the Improvements and/or the Work in connection with the Qualified Homeowner's Home under
the Program shall possess a current business license in the City and shall possess a current
license with the State of California Contractor's License Board. The Contractor shall be
required, whenever feasible, to obtain a minimum of three (3) bids from General Contractors for
all Improvements and/or for all Work to be constructed, installed, performed and/or completed in
connection with the Qualified Homeowner's Home. All bids shall be made available by the
Contractor to the Qualified Homeowner for review. All Improvements and/or Work constructed,
installed, performed and/or completed by General Contractors and/or by subcontractors in
connection with the Qualified Homeowner's Home shall be approved and authorized by the
Qualified Homeowner, and shall be completed within a specified timeframe acceptable to the
Qualified Homeowner and the General Contractors and/or the subcontractors.
6. The Contractor shall solicit bids for the construction, installation, performance and/or the
completion of the Improvements and/or of the Work in connection with the Qualified
Homeowner's Home from a list of pre-approved General Contractors. The Contractor shall
assist the Qualified Homeowners with the selection of a General Contractor, and shall assist the
Qualified Homeowner in connection with the execution of the General Contractor Agreement,
including, without limitation, a determination as to the scope of the Improvements and/or of the
scope of Work to be constructed, installed, performed and/or completed by the General
Contractor, any schedule of performance, other schedules, conduct pre-construction and walk-
through conferences.
7. Prior to the execution of the General Contractor Agreement and prior to any funding by
the Contractor of any Loan Funds to the General Contractor for the proposed Improvements
and/or Work to be constructed, installed, performed and/or completed, the Contractor and the
members of the Agency application review committee (the "Application Review Committee")
appointed and assigned by the Agency to approve, administer and oversee the construction, the
installation, the performance and/or the completion of the Improvements and/or of the Work
shall meet on one or more occasions to discuss the Improvements and/or the Work to be
constructed, installed, performed and/or completed in connection with the Qualified
Homeowner's Home and the methodology used or to be used to identify, quantify and assist the
Qualified Homeowner.
8. The Contractor and the Qualified Homeowner must review, approve, execute and
acknowledge, where designated, the Loan Documents. The Loan Documents shall include,
without limitation, the following: (i) the Note, which shall be executed by the Qualified
Homeowner in favor of the Agency and (ii) the Deed of Trust and the Maintenance Covenant
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Agreement which Deed of Trust and Maintenance Covenant Agreement must be executed and
acknowledged, where designated, by the Agency and by the Qualified Homeowner and each
must be recorded by the Contractor or by the Agency in the County Recorder's Office. The
General Contractor and/or any subcontractor cannot commence the construction, the installation,
the performance and/or the completion of the Improvements and/or of the Work in connection
with a Qualified Homeowner's Home until: (i) the Loan Documents have been executed and
acknowledged, where appropriate, by the Agency and by the Qualified Homeowner, and (ii) all
recordable instruments, documents and/or agreements in connection with the Loan, including,
without limitation, the Deed of Trust and the Maintenance Covenant Agreement have been
recorded by or for the Contractor or the Agency in the County Recorder's Office.
9. The General Contractor shall obtain one or more permits as required by applicable Laws
to construct, install, perform and/or complete the Improvements and/or the Work at the Qualified
Homeowner's Home. At the time that the Contractor submits an invoice to the Agency for
payment of all or a portion of the Loan Funds in connection with the Loan made by the Agency
to the Qualified Homeowner, the Contractor shall provide the Agency with a copy of each permit
that is or will be required to construct, to install, to perform and/or to complete the Improvements
and/or the Work in connection with the Qualified Homeowner's Home. The Agency shall have
no obligation to pay any invoice submitted by the Contractor to the Qualified Homeowner until
the Agency has received and approved each permit issued for the Improvements and/or for the
Work completed by the General Contractor and/or by the subcontractor and identified in the
InVOIce.
10. The Contractor shall inspect and monitor the Improvements and/or the Work while in
progress and shall supervise the payment invoice procedures to ensure that all General
Contractors and subcontractors are meeting obligations and that progress payments and
retentions are paid in a timely manner.
11. The Contractor shall receive and collect from the General Contractors and/or from the
subcontractors an executed lien release under one of the following lien releases, as appropriate:
(i) an unconditional waiver and release upon progress payment, or (ii) an unconditional waiver
and release upon final payment. The Contractor shall not make the final payment of the
remaining Loan Funds to any General Contractor until the General Contractor and/or all
subcontractors have executed and the Contractor has received the conditional waiver and release
upon final payment or the unconditional waiver and release upon final payment.
12. The Contractor shall coordinate final inspection and payment of the General Contractor
Agreement retention with the Qualified Homeowner, with the General Contractor and with the
Agency. The contract retention shall not be paid by the Contractor to the General Contractors
and/or to the subcontractors until all time periods for filing liens have expired and no liens have
been filed under applicable Laws.
13. Prior to the payment by the Contractor of the Loan Funds, or any portion thereof, to the
General Contractor, for the construction, for the installation, for the performance and/or for the
completion of the Improvements and/or of the Work in connection with a Qualified
Homeowner's Home, the Contractor shall notify the Agency that the Contractor has received an
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invoice for payment. Within ten (10) business days from receipt by the Contractor of the
invoice, the Contractor and the Agency shall inspect and approve the Improvements and/or the
Work identified in the invoice and constructed, installed, performed and/or completed by the
General Contractor and/or by any subcontractor. The Contractor shall not pay any such invoice
for the construction, installation, performance and/or completion of the Improvements and/or of
the Work until the Contractor and the Agency have inspected and approved, in writing, the
Improvements and/or the Work constructed, installed, performed and/or completed by the
General Contractor and/or by any subcontractors. The Agency reserves the right to approve
payment of an invoice in circumstances when no physical inspection is needed as determined by
the Agency in its sole and absolute discretion (i.e., fumigation for termites).
14. The Contractor shall maintain accurate records for inspection by the Agency concerning
income and program occupancy of all persons obtaining assistance from the Contractor pursuant
to this Agreement including, but not limited to, the Loan Application and the other Loan
Documents, proof of ownership, income verification, comparables or appraisals and/or Work
write-ups. The original Loan Documents shall be executed and acknowledged, where
appropriate, by the Agency and by the Qualified Homeowner, shall be for the benefit of the
Agency and shall be transmitted by the Contractor to Agency in connection with each Loan
made by the Agency to the Qualified Homeowner.
15. The Contractor shall also provide quarterly reports to the Agency, or as otherwise
required by the Agency, upon the request of the Executive Director to the Contractor.
16. From time to time, the Agency and the Contractor shall coordinate inspection of the
Improvements and/or of the Work at the Qualified Homeowner's Home to ensure that the
Improvements and/or the Work are performed, installed, constructed and completed in a good
and workmanlike manner and in accordance with all applicable Laws.
17. The Contractor shall provide any and all services required by the Executive Director or
his/her designee, in order to effectively implement and complete the Services under this
Agreement.
18. Prior to the disbursement by the Agency of the Loan Funds, or any portion thereof, to, or
for the benefit of, the Qualified Homeowner pursuant to the Loan that has been awarded by the
Agency to the Qualified Homeowner, the Contractor must fully comply with, verify and confirm,
to the satisfaction of the Agency, that all tasks, matters, items, events, and conditions listed on
the checklist (the "Checklist") have been fully performed and satisfied, unless specifically
waived in writing by the Agency in connection with such Loan. The Checklist shall not be
interpreted to limit or to restrict the Agreement, in any manner whatsoever. The Checklist is
attached hereto and incorporated herein by this reference as Exhibit "D".
48]4-7529-0] 18.1
28
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EXHIBIT "D"
Checklist
4814-7529-0118.1
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REHABILITATION LOAN APPLICATION APPROVAL CHECKLIST
Date of Review:
Homeowner(s) name:
Property Address:
Loan Amount:
NHS Due Diligence:
Qualified Homeowner Verification:
Resided at residence for at least one (1) year
Attended Maintenance Class on:
_ Maintenance Covenant Agreement complete
_ Affordable Housing Covenants complete (if necessary)
_ Income eligibility verified
Subject Property Equity Determination:
_ Property profile / encumbrances - Debt / Equity Ratio:
_ Property appraisal conducted; appraisal amount: $
_ Loan amount percentage of appraised property value: %
,;"'7':-...,..........,.,._~~-
. '-'
_ Property Profile: Name(s) on grant application MUST match the one(s)
listed as "Owner" or "Co-owner" on property profile
_ Preliminary title report (or other pertinent documentation)
_ Legal owner & signatory on Covenant Agreement & Grant Agreement
Property Eligibility Verification:
_ Parcel Map ("Exhibit A")
_ Located within Target Area (if applicable)
_ Verification property located in City of San Bernardino
Eligible Improvements:
_ Scope of Work consistent with "Eligible Improvements" (see list on
reverse side)
Construction Bids:
1. Name of contractor:
2. Name of contractor:
3. Name of contractor:
High Bid Amount: $
Middle Bid Amount: $
Low Bid Amount: $
i
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Eligible Improvements List:
_Roofing
_Exterior and interior paint
_Drought tolerant landscaping
Windows
_Flooring
_HVAC system
Electrical work
_Sewer repairs
_Termite repairs
_Exterior hardscape
Door & window screens
_Tub, shower and toilet
_Foundation or structural repairs
_Fencing
~Iternative energy source installation
2
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EXHIBIT "E"
General Contractor Agreement
4814-7529-0118.1
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NHSIE: Single Family Residence Rehabilitation Loan Program
GENERAL CONTRACTOR AGREEMENT
4846-3463-4756.1
~~
V i\hrA,NHS'E
.. NEIGHBORHOOD
HOUSING SERVICES
OF THE INLAND EMPIRE, INe
Neighborhood Housing
Services
of the
Inland Empire, Inc.
^ 6
. NelghborWorkse-,-
SINGLE FAMILY RESIDENCE REHABILITATION LOAN PROGRAM
GENERAL CONTRACTOR AGREEMENT
File No: (<FileNo})
Owner(s):
Rehab Address:
THIS AGREEMENT is made this _ day of _by and between
the "Owner(s)"and hereinafter called the "Contractor".
hereinafter called
WITNESSETH, that the Contractor and the Owner(s) for the consideration stated herein agree
as follows:
1. RECITALS: This Agreement is made and entered into with respect to the following facts:
a) That the Redevelopment Agency of the City of San Bernardino (the "Agency") has a program to
help low-moderate income resident-owners of single family homes make certain improvements
to their homes, called the Single Family Residence Rehabilitation Loan Program; and,
b) Neighborhood Housing Services of the Inland Empire, Inc. (the "NHSIE") has contracted with
the Agency to administer said housing rehabilitation program, pursuant to applicable laws; and,
c) Owner has determined to participate in such program by causing certain improvements to be
made to his/her property, and has qualified for a loan to undertake such improvements; and,
d) Contractor attests that its company is properly licensed and fully qualified to perform the work
proposed to be accomplished in this Agreement, under terms and conditions hereinafter set
forth; and,
e) Owner and the Contractor acknowledge and agree that the NHSIE and the Agency are third
party beneficiaries of this Agreement, consistent with the NHSIE mission of housing
rehabilitation.
2. CONSIDERATION: THE UNDERSIGNED CONTRACTOR proposes to furnish labor and materials,
complete in accordance with the specifications attached hereto as Exhibit "A" and incorporated herein
by this reference for the sum of ($ ), with payments to be made
within ninety (90) calendar days from the completion of the work, subject to any additions and
deductions as provided herein.
3. WORK: Contractor agrees to complete all work in accordance with the contract documents, all
applicable laws, and in a workmanlike manner, according to generally acceptable, standard building
practices. Any alteration or deviation from the attached specifications will be executed only upon
written consent of the property Owner(s), the Contractor, and the NHSIE. All materials are guaranteed
to be as specified. No extra charges or costs will be paid. Contractor will be solely liable if helshe
has neglected to properly evaluate the extent of the rehabilitation work. The performance under this
Agreement is subject to forced delays when due to strikes, accidents or acts of God. This Agreement
constitutes the entire agreement of the parties and of the NHSIE and Agency as to the subject matter
it contains.
CDC/2010-43
NHSIE: Single Family Residence Rehabilitation Loan Program GENERAL CONTRACTOR AGREEMENT
4846-3463-4756.1
4. INDEMNIFICATION: The Contractor agrees to indemnify, defend and hold harmless the Owner,
NHSIE, the Agency and their authorized officers, members, directors, employees, agents, contractors,
subcontractors and volunteers (collectively, the "Indemnified Parties") from any and all claims, actions,
losses, damages, suits, fees (including, without limitation, reasonable attorneys' fees, court costs,
expert witness fees and consultant fees), obligations and/or liabilities (singularly, a "Claim" and
collectively, the "Claims"), now or hereafter arising out of this Agreement from any cause whatsoever,
including acts, errors or omissions of any person and for any costs or expenses incurred by the
NHSIE, by the Agency and/or by any of the other Indemnified Parties on account of any Claim
therefore, except where such indemnification is prohibited by law. This indemnification provision shall
survive the execution, the performance, the termination and the expiration of this Agreement.
5. INSURANCE: Without in anyway affecting the indemnity herein provided and in addition thereto,
the Contractor shall secure and maintain throughout the term of Agreement, and shall continue one (1)
year after the performance by the Contractor of the work under this Agreement, the following types of
insurance:
a. Workers' Compensation - a program of Workers' Compensation insurance or State-approved Self
Insurance Program in amount or form to meet all applicable requirements of the Labor Code of the
State of California, including Employer's Liability with $1,000,000 limits, covering all persons
providing services on behalf of the Contractor and all risks to such persons under this Agreement.
b. Comprehensive General and Automobile Liability Insurance - This coverage to include, without
limitation, comprehensive general liability policy of insurance with coverage at least as broad as
"Insurance Services Office Commercial General Liability Form (G0001), in the amount not less
than $1,000,000 combined single limit per occurrence, with said insurance covering
comprehensive general liability including, but not limited to, contractual liability, assumed
contractual liability under this Agreement, acts of subcontractors, premises-operations, explosion,
collapse and underground hazards, if applicable, broad form property damage, bodily injury and
personal injury including libel, slander and false arrest and automobile liability coverage on owned,
hired and non-owned vehicles.
c. Errors and Omissions Liability Insurance - Combined single limits of $1,000,000 and $2,000,000 in
the aggregate or Professional Liability insurance with limits of at least $1,000,000 per claim or
occurrence.
6. ADDITIONAL NAMED INSURED, PRIMARY INSURANCE AND BEST'S KEY RATING: All
policies, except for the Workers' Compensation, the Errors and Omissions and the Professional
Liability policies shall contain additional endorsements naming the Owner, NHSIE, the Agency and the
other Indemnified Parties as additional named insured with respect to liabilities arising out of the
performance of the services hereunder. All insurance obtained by the Contractor shall be primary to
and shall not be contributing with any insurance carried by the NHSIE, by the Agency and/or by any of
the other Indemnified Parties. All insurance policies required under this Agreement shall be obtained
from insurance companies admitted in the State of California and rated at least A: XII in the most
current Best's Key Rating Insurance Guide.
7. WAIVER OF SUBROGATION OF RIGHTS: Except for Errors and Omissions Liability, the
Contractor shall require the insurance carriers of the above required coverage's to waive all rights of
subrogation against the Owner, NHSIE, against the Agency and against the other Indemnified Parties.
8. PROOF OF COVERAGE: Contractor shall immediately furnish certificates of insurance to the
NHSIE and to the Agency evidencing the insurance coverage, including endorsements, above
required prior to the commencement of performance of the services hereunder, which certificates shall
provide that such insurance shall not be terminated or expire without thirty (30) calendar days prior
written notice to the NHSIE and to the Agency, and the Contractor shall maintain such insurance from
the time the Contractor commences performance of services hereunder until one (1) year after the
completion of such services. Within sixty (60) calendar days after the commencement of this
2
CDC/2010-43
NHSIE: Single Family Residence Rehabilitation Loan Program GENERAL CONTRACTOR AGREEMENT
4846-3463-4756.1
Agreement, the Contractor shall furnish the NHSIE and the Agency with certified copies of the policies
and all endorsements.
9. INSURANCE REVIEW: The above insurance requirements are subject to review by the NHSIE.
10. ACCEPTANCE & START: The bid and proposal shall be accepted by the Owner(s) and by the
NHSIE within sixty (60) calendar days from the date established by the NHSIE for its receipt, provided
that no work shall be commenced by the Contractor until a written Notice to Proceed has been issued
by the Owner(s). Work will begin no later than ten (10) calendar days after the Notice to Proceed is
issued. Contractor will not assign this Agreement without the prior written consent of the Owner(s)
and of the NHSIE. Any request for assignment shall be addressed to the NHSIE.
11. PERMITS: Contractor shall procure all City of San Bernardino and all other governing authority
permits and licenses, including a municipal business license, and shall pay all charges and fees for the
same, and shall give all notices necessary and incidental to the due and lawful prosecution of the work
as it separately pertains to each party. Permits and licenses required for corresponding elements of
the work to be performed shall be obtained prior to commencing such work and all associated costs
are specifically included in the contract amounts.
12. CHANGE ORDERS: No change in the work, as described in the Work Write-up, shall be made
except upon the mutual written consent of the Owner(s), the Contractor and the NHSIE. Contractor is
not authorized to deviate from the Work Write-up or specifications unless so directed in writing by the
NHSIE. Any Change Orders shall describe the nature of the additional work, the estimated time for
completion thereof, and the compensation to be paid to the Contractor for the performance of same.
No waiver of any provision of this Agreement shall be a continuing waiver thereof.
13. OWNER(S) EXPECTATIONS: Owner(s) will permit the Contractor to use existing utilities at no
cost, such as lighting, heating, power and water, as needed to carry out the work. Owner(s) will
cooperate with the Contractor to facilitate work performance, including the removal and replacement of
rugs, coverings, miscellaneous household goods and furniture as necessary, unless otherwise noted.
14. CONTRACTOR EXPECTATIONS: Contractor will keep the premises clean and orderly during the
course of the daily work and will remove all debris at the completion of the work. Materials and
equipment which belong to the Contractor shall be removed from the premises. Work should be
planned so that the Owner(s) are not forced to relocate during the rehabilitation work, except under
unusual circumstances.
15. COMPLETION: Contractor agrees to satisfactorily complete all the work within forty-five (45)
calendar days from the noticed start date. The parties agree that time is of the essence in this
Agreement.
16. LIEN RELEASES: Contractor shall promptly pay all valid bills and charges for material, labor, or
otherwise in connection with or arising out of the construction, and shall hold the Owner(s) of the
property free and harmless against all liens and claims of lien for labor and material, or either, filed
against the property or any part thereof, and from and against all expense and liability in connection
therewith, including, but not limited to, court costs and attorneys' fees resulting or arising there from.
Should any liens or claim of lien be filed for record against the property, or should the Owner(s)
receive notice of any unpaid bill or charge in connection with the construction, the Contractor shall
forthwith either pay and discharge the same and cause the same to be released of record, or shall
furnish the Owner(s) with proper indemnity either by satisfactory corporate surety bond or satisfactory
title policy, which indemnity shall also be subject to approval of the Lien Holder. Contractor shall
furnish the Owner(s) and the NHSIE with affidavits and satisfactory releases of liens or claims for any
liens from subcontractors, laborers and suppliers for completed work or installed materials.
3
CDC/2010-43
NHSIE: Single Family Residence Rehabilitation Loan Program GENERAL CONTRACTOR AGREEMENT
4846-3463-4756.1
17. NON-EXECUTION: In the event that the Owner(s) will not execute the End of Project Work
Release, the NHSIE reserves the right to authorize payment to the Contractor for the work completed.
The NHSIE and the Contractor must certify that all of the Contractor's work has been performed in a
professional, workmanlike manner, and has adhered to the property specification standards. Upon the
written approval by the NHSIE, a payment request will be forwarded to the Agency for release of said
funds.
18. WARRANTY: Contractor will guarantee work for a period of one (1) year from the date of the final
written acceptance of all work required by the Agreement. Furthermore, the Contractor shall furnish
the Owner(s), in care of the NHSIE, with copies of all manufacturers' and suppliers' written guarantees
and warranties covering materials and equipment furnished under this Agreement. Contractor will
allow the NHSIE access to examine and to inspect all rehabilitation work. NHSIE shall have the right,
but not the obligation, at all reasonable times, to inspect the books and records of the Contractor
pertaining to the work and to the materials which are the subject of this Agreement.
19. NOTICES: Notices pursuant to this Agreement shall be given by personal service to the person,
or by deposit in the custody of the US Postal Service, within a sealed envelope containing the notices,
postage pre-paid, and addressed as listed below. Such notice shall be deemed to be received within
forty-eight (48) hours from the time of mailing, if mailed as provided above. The following information
shall be used for mailed correspondence and communications related to this Agreement:
OWNER INFORMATION:
CONTRACTOR DBA:
(Owner's Name)
(Contractor's Name)
(Rehab Address)
(Mailing Address)
(City)
(State)
(Zip Code)
(City) (State) (Zip Code)
(Telephone)
(FAX)
PROJECT ADMINISTRATOR: Neighborhood Housing Services (NHSIE)
1390 North "0" Street
San Bernardino, CA 92405
Telephone: (909) 884-6891
FAX: (909) 884-4085
20. LEAD BASE PAINT ACKNOWLEDGEMENT AND LEAD BASE PAINT DISCLOSURE: Prior to
the commencement of the work: (i) the Contractor shall deliver to the Owner the Lead Base Paint
Disclosure and the Lead Base Paint Acknowledgement, (ii) the Owner shall execute and date the Lead
Base Paint Acknowledgement and the Lead Base Paint Disclosure, and (iii) the Contractor shall
deliver to both the NHSIE and to the Agency the Lead Base Paint Acknowledgement and the Lead
Base Paint Disclosure, as executed by the Owner.
-----------------------------------------------
ACCEPTANCE AND SIGNATURES
CONTRACTOR:
Date:
4
CDC/2010-43
NHSIE: Single Family Residence Rehabilitation Loan Program
OWNER(S):
GENERAL CONTRACTOR AGREEMENT
4846-3463-4756. I
Date:
THE ABOVE AGREEMENT HAS BEEN REVIEWED AND APPROVED
For NHSIE:
5
Date:
CDC/2010-43
NHSIE: Single Family Residence Rehabilitation Loan Program
Exhibit "A"
Work Specifications
R
GENERAL CONTRACTOR AGREEMENT
4846-3463-4756. I
CDC/2010-43
EXHIBIT "F"
Homeowner's Release and Waiver
4814-7529-0118.]
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~...~J~
. NEIGHBORHOOD
HOUSING SERVICES
OF THE INLAND EMPIRE, INe
1390 North D Street/ San Bernardino, CA 92405/ Phone 909-884-6891 / Fax 909-884-8899 / www.nhsie.ore:
CDC/2010-43
Neighborhood Housing
Services
of the
Inland Empire, Inc.
SINGLE FAMILY RESIDENCE REHABILITATION LOAN PROGRAM
HOMEOWNER'S RELEASE AND WAIVER
I, , OWNER of the property located at:
Print Your Name
_San Bernardino, CA do hereby approve and
Address
grant Neighborhood Housing Services of the Inland Empire, Inc. (NHSIE) the following:
PERMISSION TO PHOTOGRAPH
1. PERMISSION TO PHOTOGRAPH OR VIDEO TAPE THE PROPERTY, RESIDENCE, AND OTHER OUT
BUILDINGS, SUCH AS GARAGES, SHEDS, ETC. FOR THE PURPOSE OF INSPECTION RECORDS, JOB
PROGRESS, BEFORE-AND-AFTER SHOTS, AND FOR FILE DOCUMENTATION. I UNDERSTAND AND
APPROVE THAT THIS MATERIAL MAY ALSO BE UTILIZED FOR PRESENTATIONS, DISPLAYS,
ADVERTISEMENTS OR PUBLICITY TO FURTHER AGENCY AND/OR NHSIE HOUSING PROGRAMS.
2. I WAIVE ANY RIGHTS WITH RESPECT TO COMPENSATION OR DAMAGES FOR USE OF PHOTOGRAPHS,
MEDIA, AND VIDEOS RELATED TO THE PROPERTY.
Owner's Signature
Redevelopment Specialist
Date:
Date:
~ ~
NelghborWorks~
4848-5581-8756.1
CHARTERED MI!MBER
All rights reserved. No Part of this documentation may be reproduced or transmitted in any form, by any means without the prior
written permission of the publisher, Neighborhood Housing Services of the Inland Empire, Inc. Rev: 8/5/2009
CDC/2010-43
EXHIBIT "G"
Lead Base Paint Acknowledgement
4814-7529-0118.1
32
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CDC/2010-43
Lead Base Paint Pamphlet - Acknowledgement of Receipt
Confirmation of Receipt of Lead Pamphlet
o I have received a copy of the pamphlet, Renovate Right: Important Lead Hazard Information for
Families, Child Care Providers and Schools informing me of the potential risk of the lead hazard
exposure from renovation activity to be performed in my dwelling unit. I received this pamphlet
before the work began.
Printed name of recipient
Date
Signature of recipient
Self -Certification Option (for tenant-occupied dwellings only) -
If the lead pamphlet was delivered but a tenant signature was not obtainable,
you may check the appropriate box below.
o Refusal to sign - I certify that I have made a good faith effort to deliver the pamphlet,
Renovate Right: Important Lead Hazard Information for Families, Child Care Providers,
and Schools, to the rental dwelling unit listed below at the date and time indicated and
that the occupant refused to sign the confirmation of receipt. I further certify that I have
left a copy of the pamphlet at the unit with the occupant.
o Unavailable for signature - I certify that I have made a good faith effort to deliver
the pamphlet, Renovate Right: Important Lead Hazard information for Families, Child
Care providers and Schools, to the rental dwelling unit listed below and that the occupant
was unavailable to sign the confirmation or receipt. I further certify that I have left a
copy of the pamphlet at the unit by sliding it under the door.
Printed name of person certifying
Attempted delivery date; and
Time lead pamphlet delivery.
Signature of person certifying lead pamphlet delivery
Unit Address
Note Regarding Mailing Option - As an alternative to delivery in person, you may mail the lead
pamphlet to the owner and/or tenant. Pamphlet must be mailed at least 7 days before renovation
(Document with a certificate of mailing from the post office).
P:\Agendas\Agenda Attachments\Exhibits\20 1 0\7.] 9.1 0 NI-ISIE Rehab Loan LBP Acknowledgement
CDC/2010-43
EXHIBIT "H"
Lead Base Paint Disclosure
4814-7529-0118.1
33
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.,.
-.',
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u.s, Oepaftrnet1t of Hw$ing llnd Urban Development. Office of Communily Plann~ and Development
To:
Ae:
ONners. T en.llnls and Purdlasers of HoltSing COMtnJeliOtl belore t978
",OTlFICATIOH: Walch Out For lead.BaSed Paint Poisoning
HIe.
Dale
SoUfces 01 Lead Based PaiD! . .
The lI'llErlOtS ot olde, OOlt\ds and apattmenls otten have layers ollead-baset1 painl on Ihe walls. ceilings. window $/"$. dollfS and door
frames. le.d.based paint and primers may also have been used on OUl$ide pon:hes. raii^9S. garages. fwe escapes and bmp ~s.
Whc!Il rhe pain. chips. flakes Of peels oft. tflere may be a real danger for babies and young children. Chilchn may eat palnl ~ Clt'
clwiwon painted railil1g$. window sils or OIher ilems when parents .. not around. Children can also ~llead even ~ !hey do ~
spec:JflCaly eat paint chips. for example. when children play in an area wIlere there are Ioo$e paint ~ or dusf pattleles on (he.,
hands. puf Ihetr hands in!o l!leir mouths. and ingest a dangerOOJ$ amount, ~11ead.
Hazards of lead.Bas!ld Paint
lead poisofting is dangeroU$ - especially to children under the age of se"en (71. It can eventually cause mental retardatIOn:,
b1ifldrtess and even deMh.
~oms oIle.lld.8ased PaMt Poisonigg
fUs your child been especially Cranky or irrifable? Is lie or she eating ltOmlally' Does your child hIVe stomach aches and ~ing?
Does he or she co~ain about headacl!es1 Is your ehiId unwilling 10 Jiay? These may be signs of lelld poisoning. Many .'IIM$
though. 1'*. are no syftlpCorns al all. 8eeause ke ar. no ~tOftl$ does M mean that YfO stloufd noI b. concerl\ed if you
believe your chifd has been elCpOSed to fead-based paint.
~iIf!!i.A~ of Blood leadlevef ScreeninsJ
If you $UspCCl that your child has eaten chip; of pm or someone told you this. you shoukf fake yolK eh!kllo 1he Qodcr or clinic for
1_ing. If lhe I~st shows that your chtld ha$ WI eleYated btood lead level, t(eal~r.C if; avaW:Ile. Contacl your doctor or /ocaf ~allll
depaltml!nllct help Of lnwe infonnation. lead screening and lreatment are available (horougtt tf1e ~ald Prog'am 101 those who
'.. eligible. ff yOu child is idencified as having an efevated bfood fead. leve'. yOu shoUld immee'i8tely notify the ColtVJ'!ll.niy
f)eo,elopmenl or other agency (0 which you or ~ bn<lotd ~ applying for rehabiilation 'assiStance $0;) lhe neceSSltfY steps can bo
ta/ll!l\ 10 lest your unit for lead-ba$ed paint halarefs. If YOUt unit does have Iead-basecf paint. }fOCI may be eligible for aS$istance 10
abat.. lhal hazanf. _
f
eftlcaufions to Tate. to PI'l!V1!In lead-Based Paint POisonj,lg
You can avoidlead.baSed painl poisoning IlV performing some preventive maintenance. look at Ihe wals. ceifings. door5. door
'''"''" and.window sills. Are 1here piaces WI1<<e the painl is peeing. flaking. chiPl*lI. Of powdering? "so. thi!fe are SOf!'Il! things
you can do immeda1elv 10 proteet yolK chid:
fa) Cover all fumiture and appliances:
(b) Ousl containing lead can be a heatd1 ha~an:f. 00 NOT ~utlm loose pain(. Sweep and da~ mop:
' (e) SwNp up all pieces of painl and pfasler and put !hem in . paper bag or 1IWrap them in newspaper. PlIl these packages in !he trash
c...,. 00 NOT BURN THEM;
Cd) Do not fe_e paint chips on tho "00( or in wiIldowwels. OllfllJ mop floors and window sils in and arOUl1d the WOdc' area 10
t'aft1OVC .... dusl and paint P8r1icfes. Keeping llte$e areas clear of paint ~ dust and din is easy and lie" inl'ortant. and:. ,r;
(eJ 00 not ~ow foo~ pain( to tenu.in wilhin your cflidren:sreac~ since chi~.n ~ pidc.1o,o$e ~.~ ~"~~' ~Ihe waR~.., . _.. . . " . i~
. .Ol~~.t,kIm~$Candlre~lof~'8_~Pf~'~1am~_ .; ,,'-'.: '_"":"<..':.:'.. -"':.' :":':~.:" :-.;:::'.:;=:-,::.::<'.....: ':"';" u";:. .: ".:.: ;,~
',.As a .~~. yqll shOtik1-.~~ .dt~,ftec"'~${eps 'lO~'~'Mmi! 'm.good shapa.Wa1!!l: 1e;j~s.:fiomJ~ ~g~''': ", '_ . ",: I:)
':. ~N~ rtXlfs. ..ftd.cltler~.,,*s'~~aks may.~:t~n.oci~ness.~o:~,~el;o(:otvcU:~ ::~:~'-da~': . '.,' .... '::;
.W:1I1l;~"l~.c.!tfN'9$.and,e.:tuH.fiirit~o:p~~'i.e;.ackot.i"I~5'. ""~'~k'"'''' ~'~"";'~"'.:~~;a.,... . . ", l~:
:;~- ~~:~~'""I
. . -." ~!o!I-""~: .......1 h.?;~ JlMQ SUtf!,i:.~ ~s Mt elm"""e-'Ilo. hazatd. ~mei;ibef 1hat )'GlI as lII'l ~.jlIaf a major role WI 1M t
. .~. y...,.....,.., 1~..llf ,kffr.,lt"n!l Y~lr i1eIH)O$ :k\<f -enes:i O1bouIIM lead probfetn elll'l m."1ke a big ddll!tCi1c~' , f:
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! ...,.,.ne .il!hll.....".,,,'Y.., 1~...~~t1~ ;:
.tIC' :.'''''''.1 "'",....ct...tcly ",.Idy ,he m.lRagerncnr oIll(;l! Clt' the agency Ihrough WlllCb yotIlIle pureh~ YOUf home if rI,o \1I1tI lIils
LIf''''''I. d"l"""I.,MIW<""'"'ll\r ~1"'91)31f\1. W:lI'!r I~"k!i 110m plumbirrg. 01 " cJeleclivc roo' Yt\\1 $I\ould cOO(ler31e with 11'-'1 oltlCe's
., 4kl.. In "11.Hf ""1 lIth<<
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.1 . II. we Iccerv",' ... copy of"ltl f{<"ICC a"'""Cd : Protect Your Family From Lead in
Your Home.
~~
Home~~ner's Signature
Date
NHSIE Rehab Specialist
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.: ~ ;~.: :::: .... -:~. . ~:"".:"'l.' ,,:,'>~.7 .....'.';" ~:-: ~.-: ';:--:,""=.:'\, ~.:-..-.. ~. -,.,-; "-."
". -; ",.:;;.:;.:~ ,:_-:;;.-::~~:::-..:"..._;.. "'. '"._'" '. r.."';~. "~~, ,., ":', ~_."._. ':.~ _. '\ ..... ""_' ~ ....~.. ..: .~ .~.,'.-:'.: ~ ...::::,--:.:;.~ ::~-'.: ::-,:"" :"'.';~.'~":<:~:~, ~".'C-~ "',"...'. .. ....~....... ~.~. '. ...~ ..;"'>..-."'. ".~... .,..-....,... <: '<;-;:'<:",.. ",<,,'-:CO:;"':"'''-;~~''''
CDC/2010-43
EXHIBIT "I"
Loan Application
4814-7529-0118.1
34
P:\Agendas\Agenda Attachments\Agenda Attachments\Agnnts-Amend 20 I 0\8-2-1 0 NHSJE Single Family Residence Rehabilitation Loan
Agreement
For Office Use ONLY
Application Mailed out on: I
CDC/2010-43
Redevelopment Agency of the City Of San Bernardino-
Single Family Residence Rehabilitation Loan Program Application
(NHSIE)
Neighborhood Housing Services of the
Inland Empire Services, Inc.
Applicant's Name (Last, First, MI)
Applicant's Date of Birth
Co-Applicant's Date of Birth
Applicant's Spouse's Name or Co-Applicant
Street Address
Applicant's Phone Number
(Office Use Only)
Map Verification
Date: Initials:
City/Zip
DO YOU HAVE ANY NOTICE OF VIOLATION WITH THE CITY OF SAN BERNARDINO CODE ENFORCEMENT
OR ANY OTHER CITY AGENCIES YES IF YES PROVIDE COPY. NO
y
rd'
'd
L' 11
r .
'd
h h
ears 1ve m reS1 ence: 1st a persons 1Vmg m res1 ence ot er t an vou:
I Name Relationship Age Emuloved
, Yes No
I
Any income must be shown in income section. Must show proof of income to qualify. Written verification must be forwarded with application.
MONTHLY HOUSEHOLD GROSS INCOME
AFDC q; Social Securitv q; SSI/SSP $
Disabilitv $ Emnlovment ~ Food Stamns $
Unemnlovment Ins $ Pension/Retire $ Alimonv $
Child Sunnort q; Other/Real pron. q;
Total Monthly Income: $ Total Annual Income $
2010 Income Level
(Subject to annual change) 1 2
Household Annual Income May Not Exceed:
120% Median Income
8
82,250
102,950
Ethnicity: (Please check all that apply) Optional
D Sr. Citizen(s)-60 or older
D Hispanic
D Black
D Female Head of Household
D Asian/Pacific
D White, Non-Hispanic
D Disabled One or More
D American Indian
D Other
I certify under penalty of perjury that the information provided above is correct to the best of my knowledge. I
understand that the inclusion of any willful misrepresentation on this form constitutes ground for rejection of this
application and recapture of any financial benefit I may have received. I authorize the NHSIE and or the
Redevelopment Agency of the City of San Bernardino to examine and to verify any and all information
provided in this application.
Date:
Signature
P:\Agendas\Agenda AttachmentslExhibits\20l 017.19.10 IHDC Rehab Loan Application
CDC/2010-43
EXHIBIT "J"
Loan Services Agreement
4814-7529-0118.1
35
P:\Agendas\Agenda Attachments\Agenda Attachments\Agnnts-Amend 2010\8-2-10 NHSIE Single Family Residence Rehabilitation Loan
Agreement
CDC/2010-43
7A~~
" ~i! I NHSIE
(.,. NEIGHBORHOOD
HOUSING SERVICES
OF THE INLAND EMPIRE. INe
Neighborhood Housing Services
of the
Inland Empire, Inc.
1390 North D Street/ San Bernardino, CA 92405 / Phone 909-884-6891 / Fax 909-884-8899 / www.nhsie.onz
Single Family Residence Rehabilitation Loan Program
LOAN SERVICES AGREEMENT
Owner Narne(s)
Owner Address:
CONGRATULATIONS! You have been awarded the Single Family Residence
Rehabilitation Loan (the "Loan") under and pursuant to the Single Family Residence
Rehabilitation Loan Program (the "Program") from the Redevelopment Agency of the City of San
Bernardino (the "Agency") in concert with the Neighborhood Housing Services of the Inland
Empire, Inc. (the "NHSIE'?
The Loan is deferred (meaning there are no payments); however it does accrue simple
interest at the rate of three (3) percent per annum, until the occurrence of a transfer of title to the
property securing the note, or if you refinance the original loan to use equity or if you sell the
property then repayment will become due and payable. The Loan is evidenced by the promissory
note (the "Note") and secured by the deed of trust with assignment of rents (the "Deed of Trust")
encumbering your home.
The Loan is being made by the Agency to you under the Single Family Residence
Rehabilitation Loan Program and is in an amount not to exceed $ (except as
provided for in Section 5 of the Program Qualifications and Guidelines below).
NHSIE is authorized by the Agency to administer the Program. Priority is given on an as-
needed, first-come, first-served basis to applicants who have completed necessary paperwork.
However, in the case of an emergency, of an urgent need or of a life-threatening situation, the
NHSIE may process a Loan application (the "Loan Application") ahead of other Loan Applications.
Focus of the work will be to the exterior beautification (curb appeal) of the home and of the front
yard landscaping within limitations. Please be aware that with restricted funds it is not possible to
do everything that everyone wants and it is not possible to address all deficiencies, code and/or
safety items with this Loan. In order to serve as many homes as possible, work priorities will be
decided by the NHSIE on an individual basis. For example, appliance repairs, backyard patios, or
custom items are not covered; front landscaping, roof replacement, fences may be covered.
PROGRAM QUALIFICATIONS & GUIDELINES: Applicants must understand and agree to the
following:
1. Assistance is available to low-moderate income eligible owner-occupants who live in the
City of San Bernardino;
:\Agendas\Agenda AttachmentslExhibits\201 017.19.1 0 NI-ISIE Rehab Loan Loan Services Agreement
CDC/2010-43
SINGLE F AMIL Y RESIDENCE REHABILIT A nON LOAN AGREEMENT
2. Homeowner must complete the Loan Application and the Maintenance Needs Application
Document and must submit to the NHSIE the Loan Application, the Maintenance Needs
Application Document and necessary qualifying verifications, as requested;
3. Homeowners must own their home and occupy it as their principal residence for a
minimum of one (1) year prior to the submission of the Loan Application and of the
Maintenance Needs Application Document to the NHSIE;
4. Personal household Income level, adjusted for family size, during the twelve (12) months
preceding the date of submission of the Loan Application and the Maintenance Needs
Application Document must not exceed 120% of county median for low-moderate income
households (the "low-moderate income"), as determined by the HUD income guidelines for
families, as adjusted from time to time; all household sources of income earned from
persons who are eighteen years and older and who reside in the household as their
principal residence shall be considered;
5. The Loan shall be evidenced by a Promissory Note Secured by Deed of Trust (the "Note")
in the amount of the Loan and secured by a Deed of Trust and Assignment of Rents (the
"Deed of Trust") encumbering the home. The Loan made by the Agency to the
homeowner may not exceed the lesser of: (i) $25,000 or (ii) twenty-five percent (25%) of
the then fair market value of the home as determined by a licensed appraiser approved by
the Agency;
6. Final determination as to the Scope of Work (as defined below) rests with the NHSIE
Redevelopment Specialist, based upon need, extent of work, urgency of situation,
code violations, funding availability and other issues;
7. Homeowners must continue to upkeep their improved property after the work is done, and
show their commitment by signing the RESIDENTIAL PROPERTY MAINTENANCE
AGREEMENT CONTAINING COVENANTS AFFECTING REAL PROPERTY (Single
Family Residence Rehabilitation Loan Program) (the "Covenant Agreement");
8. Homeowners must execute and acknowledge all Loan Documents (as defined in the
Single Family Residence Rehabilitation Loan Program Agreement (the "Rehabilitation
Loan Program Agreement");
9. Homeowners must not have received a loan or grant from the Agency for the past ten (10)
years, all loans made by the Agency, if any, to the homeowner must be paid in full by the
homeowner, and the homeowner must have repaid all grant amounts owned by the
homeowner to the Agency under any prior grant program resulting from the homeowner's
breach under such grant program;
10. Homeowner must agree to attend and must attend a maintenance class conducted by the
NHSIE in connection with the maintenance and upkeep by the homeowner of the home;
11. Homeowners must promise to continue living in their home for ten (10) years after the date
that the Deed of Trust is recorded in the official records of the county recorder's office for
the County of San Bernardino, State of California (the "County Recorder's Office"). If the
home is sold or refinanced within ten (10) years after the recordation of the Deed of Trust
and the Covenant Agreement in the County Recorder's Office, or if the home is no longer
2
CDC/2010-43
SINGLE F AMIL Y RESIDENCE REHABILIT A nON LOAN AGREEMENT
the primary residence of the homeowner, the homeowner at such time must pay the full
Loan amount to the Agency. A copy of your Covenant Agreement will be recorded in the
County Recorder's Office and sent to the Agency as a permanent record.
HID Initials
SCOPE of WORK: NHSIE will schedule an appointment in your home. During the visit, the
NHSIE Redevelopment Specialist will inquire as to your needs, observe the outside of the
structure, and determine what work can best be accomplished under the Program. One or more
inspections may be necessary, depending on each situation. Photos of the property will be taken
and a Work Write-up (the "Scope of Work") will be prepared. You will be asked to sign a waiver
for the photos and to authorize placement of a NHSIE sign and an Agency sign in your front yard,
to remain during the construction. The work on your home will be scheduled in the coming
weeks.
Role of NHSIE
1. NON-PROFIT ADMINISTRATOR: NHSIE is a private, non-profit 501 (c)(3) corporation, which
provides down-payment and housing assistance programs, homeownership education, and is
committed to reducing neighborhood blight and improving the condition of local housing via
several beautification programs. NHSIE has contracted with the Agency to implement and to
administer the Agency's Program.
2. WORK PERFORMANCE: The Owner will enter into a general contractor agreement (the
"General Contractor Agreement") with a general contractor approved by the NHSIE (the
"General Contractor"). The General Contractor shall complete the Scope of Work in
accordance with the General Contractor Agreement. The General Contractor, without
limitation, shall hire one (1) or more subcontractors, arrange for materials or supply deliveries,
and/or initiate whatever is reasonably necessary to accomplish the Scope of Work in a timely
and professional manner.
3. MODIFICATIONS: The NHSIE Redevelopment Specialist may from time-to-time make
modifications in materials, labor or materials as deemed appropriate for the progress of the
Scope of Work.
4. AUTHORITY TO NHSIE: Homeowner authorizes the NHSIE staff to issue orders and/or
instructions as necessary to initiate and to continue the work, generally based upon the Work
Write-up. In the absence of the homeowner, the NHSIE will issue such instructions needed to
carry out the work and progress towards completion; to stop work when such work appears to
be in violation of code, health and safety matters, or when the work or situation could lead to
obvious injury of persons or property; to stop work that would significantly alter the Scope of
Work, or exceed the project budget or Program limits; and to make decisions considered in
the best interest of the homeowner and/or the Agency.
5. TECHNICAL SERVICES: NHSIE does not charge the homeowner for technical services and
will continue to provide in-progress inspections on site at no cost to the homeowner. The
NHSIE will make every effort to see that contractors, subcontractors and suppliers provide
appropriate materials and deliver services of good quality. The NHSIE can neither assume
liability for, nor guarantee contractor or subcontractor work quality, or failure to adequately
perform on site.
3
CDCj2010-43
SINGLE F AMIL Y RESIDENCE REHABlLIT A nON LOAN AGREEMENT
6. RESOLUTION OF DISPUTES: Upon written notice from the homeowner or the contractor,
the NHSIE will arrange to meet with the contractor, the subcontractor or the supplier most
directly responsible for the work in question, as well as with the homeowner. The parties will
discuss, examine, decide upon, and approve the disputed issue before it proceeds further.
NHSIE will make reasonable efforts to help the parties resolve the matter. In the absence of
resolution, the Agency has the final determination as to outcome. HIO Initials
Homeowner(s') Responsibilities
1. COOPERATION: Homeowner agrees to cooperate fully with the NHSIE, the assigned
contractors, the sub-contractors and the suppliers during the construction process so that the
work may progress as scheduled.
2. PAPERWORK: It is the homeowner's responsibility to review, approve and sign various
documents (i.e. the Write-up, Scope-of-Work), major change-orders, job completion, and
invoices. Timeliness is of the essence.
3. UTILITIES & INSURANCE: Homeowner agrees to make electric, water and other utilities
available to support the construction activity without charge. Homeowner also agrees to
include the in-progress work and materials under their homeownership insurance policy.
4. ACCESS: Homeowner is responsible for providing regular, safe access to work site as
discussed and pre-arranged at the beginning of the project. The homeowner or a responsible
adult should be available during the work day to respond to questions. No work will be done
when children (under 18) are home alone at the site. The homeowner should provide for and
protect animals and pets by keeping them away from the work site. Aggressive or dangerous
animals should be chained or removed from site during construction. NHSIE is not responsible
to move furniture or owner's belongings. Small or personal items should be put away,
covered, and/or removed from the work site by the homeowner. NHSIE staff will be courteous
and treat homeowner's property with respect; however, the NHSIE accepts no liability for
broken, lost or damaged personal property, furniture, appliances, vehicles, plants, or animals.
HID Initials
5. PROJECT DELAYS: NHSIE has the right to stop work and to move on to another client if
there are substantial, continued or unwarranted delays due to the homeowner involvement,
over-eagerness, or interference. Any financial liabilities incurred up to that point are those of
the homeowner alone.
6. CONCERNS: As Program administrator, the NHSIE is the homeowner's primary contact
during the job. Please direct any issues, concerns, or questions to the NHSIE Redevelopment
Specialist as soon as possible. NHSIE will contact contractors, subcontractors or suppliers to
address your stated concerns. However, once materials are installed in place, the ability to
make changes, repairs or replacement is not likely, and could involve other direct costs to the
homeowner, which extend beyond the scope of the Loan.
4
CDC/2010-43
SINGLE F AMIL Y RESIDENCE REHABILIT A nON LOAN AGREEMENT
General Provisions
1. Homeowner agrees to hold harmless and indemnify the NHSIE, the Agency, and their
employees, members, officers, directors, agents, employees, contractors, sub-contactors and
consultants, in connection with acts performed by them or omissions that occur under this
Covenant Agreement and/or which would reasonably be associated with consultation,
technical advice, property inspection, and construction activities done in good faith.
2. Homeowner agrees and authorizes the NHSIE staff to obtain and/or to provide specific
reports, property title and tax searches, building code inspection reports, property appraisals,
termite reports, hazardous certifications, repair specifications, cost estimates, contractors
bids, and to initiate inspections and/or materials deemed necessary to adequately perform the
job. NHSIE provides regular progress reports to various agencies, such as the Agency.
3. Whenever the pronouns "I", "my", "me" are used in this Agreement, they shall mean "we",
"our", and "us" respectively, if more than one homeowner is responsible.
AUTHORIZATION AND ACCEPTANCE OF AGREEMENT
In connection with this Loan, in reference to proposed construction services, I hereby declare that
I (we) meet the Program qualifications, understand the guidelines, and accept the terms
described above. I (We) further support and authorize the NHSIE, the Agency and their
designated staff, contractors and/or subcontractors to access and to inspect my property during
normal business hours, to monitor, to supervise, to act as technical assistant, and to perform all
necessary construction activities, for the beautification of my property, which is located at: _
San Bernardino. CA
Owner Signature:
Co-Owner:
Date:
Date:
For: Neighborhood Housing SeNices of the Inland Empire, Inc.
By:
Date:
~ ~
NelghborWorks""
CHARTERED MEMBER
5
CDC/2010-43
EXHIBIT "K"
Maintenance Covenant Agreement
4814-7529-0118.1
36
P:\Agendas\Agenda Attachments\Agenda Attachments\Agnnts-Amend 20 I 0\8-2-1 0 NHSIE Single Family Residence Rehabilitation Loan
Agreement
CDC/2010-43
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
Redevelopment Agency
of the City of San Bernardino
Attn.: Interim Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 92401
(Space Above Line Reserved For Use By Recorder)
Recording Fee Exempt Pursuant to Government Code Section 6103
RESIDENTIAL PROPERTY MAINTENANCE AGREEMENT
CONTAINING COVENANTS
AFFECTING REAL PROPERTY
Single Family Residence Rehabilitation Loan Program
THIS RESIDENTIAL PROPERTY MAINTENANCE AGREEMENT CONTAINING
COVENANTS AFFECTING REAL PROPERTY (the "Covenant") is made and entered into as
of ,_2010, by and between the REDEVELOPMENT AGENCY OF THE CITY OF
SAN BERNARDINO, a public body, corporate and politic (the "Agency") and (the
"Owner") and this Covenant relates to the following facts set forth in Recitals:
RECITALS:
WHEREAS, the undersigned is/are the Owner of that certain improved real property
located in the City of San Bernardino, State of California, and more particularly described in
Exhibit "A" attached hereto and incorporated herein by this reference (the "Property"); and
WHEREAS, the Agency and the Neighborhood Housing Services Of The Inland Empire,
Inc., a California non-profit corporation (the "Contractor") executed, delivered and entered into
the Single Family Residence Rehabilitation Loan Program Agreement (the "Rehabilitation Loan
Program Agreement"), dated ,2010; and
WHEREAS, pursuant to the Rehabilitation Loan Program Agreement the Agency has
agreed to make separate loans to Qualified Homeowners (as defined therein) in accordance with
and pursuant to the terms, covenants and conditions of the Rehabilitation Loan Program
Agreement; and
WHEREAS, in accordance with and pursuant to the Rehabilitation Loan Program
Agreement and the Program (as defined in the Rehabilitation Loan Program Agreement), the
Agency has determined that the Owner is eligible to receive a Loan (as defined in the
Rehabilitation Loan Program Agreement) from the Agency to enable the Owner to construct, to
install, to perform and to complete the Improvements (as defined therein) at the Property; and
WHEREAS, as a condition to the making of the Loan by the Agency to the Owner, the
Owner must execute and aclmowledge, where appropriate, the Loan Documents (as defined in
1
P:\Agendas\Agenda Attachments\Exhibits\20 1 0\7.19.10 NHSIE Rehab Loan Maint COy Agreement
CDC/2010-43
the Rehabilitation Loan Program Agreement) including the execution and acknowledgment by
the Owner of this Covenant which Covenant shall be recorded in the County Recorder's Office
(as defined below).
NOW, THEREFORE, IN CONSIDERATION OF THE RECITALS MENTIONED
ABOVE, FOR THE APPROVAL AND FOR THE MAKING OF THE LOAN BY THE
AGENCY TO THE OWNER AND FOR SUCH OTHER GOOD AND VALUABLE
CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY
ACKNOWLEDGED BY THE OWNER AND BY THE AGENCY, THE OWNER AND THE
AGENCY COVENANT AND AGREE AS FOLLOWS:
Section 1. Definitions of Certain Terms. As used in this Covenant, the following
words and terms shall have the meaning as provided in the Recitals or in this Section 1 unless the
specific context of usage of a particular word or term may otherwise require:
Adjusted Family Income. The words "Adjusted Family Income" mean the anticipated
total annual income (adjusted for family size) of each individualized or family residing or treated
as residing in the Property as calculated in accordance with Treasury Regulation 1.167(k) - 3
(b)(3) under the Code, as adjusted, based upon family size in accordance with the household
income adjustment factors adjusted and amended from time to time, pursuant to Section 8 of the
United States Housing Act of 1937, as amended.
County Recorder's Office. The words "County Recorder's Office" mean the official
records of the county recorder for the County of San Bernardino, State of California.
Covenant. The word "Covenant" means this "Residential Property Maintenance
Agreement Containing Maintenance Covenants Affecting Real Property" by and between the
Owner and the Agency.
Covenant Term. The words "Covenant Term" shall have the meaning set forth in
Section 5.
Low-Moderate Income Family. The words "Low-Moderate Income-Family" means
persons and families whose income does not exceed 120 percent of area median income,
adjusted for family size by the department in accordance with adjustment factors adopted and
amended from time to time by the United States Department of Housing and Urban Development
pursuant to Section 8 of the United States Housing Act of 1937.
Owner. The word "Owner" means the owner of the Property (e.g.: all persons identified
as having property ownership interest vested in the Property).
Successor-In-Interest. The words "Successor-In-Interest" mean and refer to the person
or household, which may acquire the Property from the Owner at any time during the Covenant
Term by purchase, assignment, transfer or otherwise. The Successor-In-Interest shall be bound
by each of the covenants, conditions and restrictions of this Covenant.
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The titles and headings of the sections of this Covenant have been inserted for convenience of
reference only and are not to be considered a part hereof and shall not in any way modify or
restrict the meaning of any of the terms or provisions hereof.
Section 2.
Acknowledements and Representations of the Owner.
The Owner hereby acknowledges and represents that, as the date of execution of this
Covenant:
(a) the total household income for the Owner does not exceed the maximum amount
permitted as Adjusted Family Income for a Low-Moderate Income Family adjusted for family
SIze;
(b) the Owner intends to occupy the Property after the date of execution of this
Covenant as the principal place of residence for a term of at least ten (l0) years following the
date of recordation of this Covenant in the County Recorder's Office and the Owner has not
entered into any arrangement and has no present intention to rent (without the prior written
consent of the Agency), sell, transfer or assign the Property to any third party during the
Covenant Term so as to fmstrate the purpose of this Covenant;
(c) the Owner has no present intention to lease or rent any room or sublet or rent a
portion of the Property to any relative of the Owner or to any third person at any time during the
Covenant Term.
Section 3. Maintenance Condition of the Property. The Owner, for itself, its
successors and assigns, hereby covenants and agrees that:
(a) The exterior area of the Property, which are subject to public view (e.g.: all
improvements, paving, walkways, landscaping, and ornamentation) shall be maintained in good
repair and a neat, clean and orderly condition, ordinary wear and tear excepted. In the event that
at any time during the term of the Covenant Term, there is an occurrence of an adverse condition
on any area of the Property which is subject to public view in contravention of the general
maintenance standard described above (a "Maintenance Deficiency") then the Agency shall
notify the Owner in writing of the Maintenance Deficiency and give the Owner thirty (30)
calendar days from the date of such notice to cure the Maintenance Deficiency as identified in
the notice. The words "Maintenance Deficiency" include without limitation the following
inadequate or nonconforming property maintenance conditions and/or breaches of single family
dwelling residential property use restrictions:
. failure to properly maintain the windows, stmctural elements, and painted exterior
surface areas of the dwelling unit in a clean and presentable manner;
. failure to keep the front and side yard areas of the Property free of accumulated
debris, appliances, inoperable motor vehicles or motor vehicle parts, or free of
storage of lumber, building materials or equipment not regularly in use on the
Property;
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. failure to regularly mow lawn areas or permit grasses planted in lawn areas to
exceed nine inches (9") in height, or failure to otherwise maintain the landscaping
in a reasonable condition free of weed and debris;
. parking of any commercial motor vehicle in excess of 7,000 pounds gross weight
anywhere on the Property, or the parking of motor vehicles, boats, camper shells,
trailers, recreational vehicles and the like in any side yard or on any other parts of
the Property which are not covered by a paved and impermeable surface;
. the use of the garage area of the dwelling unit for purposes other than the parking
of motor vehicles and the storage of personal possessions and mechanical
equipment of persons residing in the Property.
In the event the Owner fails to cure or commence to cure the Maintenance Deficiency
within the time allowed, the Agency may thereafter conduct a public hearing following
transmittal of written notice thereof to the Owner ten (10) calendar days prior to the scheduled
date of such public hearing in order to verify whether a Maintenance Deficiency exists and
whether the Owner has failed to comply with the provision of this Section 3(a). If, upon the
conclusion of a public hearing, the Agency makes a finding that a Maintenance Deficiency exists
and that there appears to be non-compliance with the general maintenance standard, as described
above, thereafter the Agency shall have the right to enter the Property (exterior areas only) and
perform all acts necessary to cure the Maintenance Deficiency, or to take other action at law or
equity the Agency may then have to accomplish the abatement of the Maintenance Deficiency.
Any sum expended by the Agency for the abatement of a Maintenance Deficiency as authorized
by this Section 3(a) shall become a lien on the Property. If the amount of the lien is not paid
within thirty (30) calendar days after written demand for payment by the Agency to the Owner,
the Agency shall have the right to enforce the lien in the manner as provided in Section 3(c).
(b) Graffiti which is visible from any public right-of-way which is adjacent or
contiguous to the Property shall be removed by the Owner from any exterior surface of a
structure or improvement on the Property by either painting over the evidence of such vandalism
with a paint which has been color-matched to the surface on which the pain is applied, or graffiti
may be removed with solvents, detergents or water as appropriate. In the event that graffiti is
placed on the Property (exterior areas only) and such graffiti is visible from an adjacent or
contiguous public right-of-way and thereafter such graffiti is not removed within seventy-two
(72) hours following the time of its application; then in such event and without notice to the
Owner, the Agency shall have the right, but not the obligation, to enter the Property and to
remove the graffiti. Notwithstanding any provision of Section 3(a) to the contrary, any sum
expended by the Agency for the removal of graffiti from the Property as authorized by this
Section 3(b) shall become a lien on the Property. If the amount of the lien is not paid within
thirty (30) calendar days after written demand for payment by the Agency to the Owner, the
Agency shall have the right to enforce its lien in the manner as provided in Section 3( c).
(c) The parties hereto further mutually understand and agree that the rights conferred
upon the Agency under this Section 3 expressly include the power to establish and enforce a lien
or other encumbrance against the Property in the manner provided under Civil Code Sections
2924, 2924b and 2924c in the amount as reasonably necessary to restore the Property to the
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maintenance standard required under Section 3(a) or Section 3(b), including attorneys' fees and
costs of the Agency associated with the abatement of the Maintenance Deficiency or the removal
of graffiti and the collection of the costs of the Agency in connection with such action. In any
legal proceeding for enforcing such a lien against the Property, the prevailing party shall be
entitled to recover its attorneys' fees and costs of suit. The provisions of this Section 3 shall be a
covenant running with the land for the Covenant Term and shall be enforceable by the Agency in
its discretion, cumulative with any other rights or powers granted by the Agency under
applicable law. Nothing in the foregoing provisions of this Section 3 shall be deemed to
preclude the Owner from making any alterations, additions, or other changes to any structure or
improvement or landscaping on the Property, provided that such changes comply with the zoning
and development regulations of the City of San Bernardino and other applicable law.
(d) Any lien in favor of the Agency as may arise under this Section 3 will not become
effective until such time as the Agency records a "Notice of Lien" in the official records of San
Bernardino County which references this Section 3 of this Covenant. Any lien in favor of the
Agency created pursuant to this Section 3 shall be subject to the lien or charge of any mortgage,
deed of trust or other financing or security instrument made in good faith and for value in favor
of an institutional lender prior to the date of such Notice of Lien. In the event of a foreclosure of
such a deed of trust or other lien which predates such Notice of Lien, or in the event of an
acceptance of a deed in lieu of foreclosure, the Agency lien evidenced by such a Notice of Lien
which has accrued up to the date of foreclosure or the acceptance of a deed in lieu of foreclosure
shall be extinguished, and the foreclosure purchaser or deed in lieu grantee shall take title in the
Property free of the Agency lien evidenced by the Notice of Lien; provided however, any such
successor of a security interest in the Property during the Covenant Term shall be subject a new
lien of the Agency arising under of this Section 3 for all charges that may accrue under this
Section 3 subsequent to the foreclosure or deed given in lieu of foreclosure during the Covenant
Term.
Section 4. Covenants to Run With the Land. The Owner and the Agency hereby
declare their specific intent that the covenants, reservations and restrictions set forth herein are
part of a plan for the promotion and preservation of affordable single family housing within the
territorial jurisdiction of the Agency and that each shall be deemed covenants running with the
land and shall pass to and be binding upon the Property and each Successor-In-Interest of the
Owner in the Property for the Covenant Term. The Owner hereby expressly assumes the duty
and obligation to perform each of the covenants and to honor each of the reservations and
restrictions set forth in this Covenant. Each and every contract, deed or other instrument
hereafter executed covering or conveying the Property or any interest therein shall conclusively
be held to have been executed, delivered and accepted subject to such covenants, reservations,
and restrictions, regardless of whether such covenants, reservations and restrictions are set forth
in such contract, deed or other instrument.
Section 5. Covenant Term. The words "Covenant Term" mean and refer to the
period of time when this Covenant shall be in effect. Following its recordation, this Covenant
shall be in effect for ten (10) years thereafter. This Covenant shall run with land and shall be
enforceable by the Agency and by the City of San Bernardino, as the successor public agency to
the Agency.
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Section 6. Governim! Law. This Covenant shall be governed by the laws of the
State of California.
Section 7. Amendment. This Covenant may be amended only by a written
instrument executed by the Owner (or the Successor- In- Interest, as applicable) and by the
Agency.
Section 8. Attorneys' Fees. In the event that the Agency brings an action to enforce
any condition or covenant, representation or warranty in this Covenant or otherwise arising out
of this Covenant, the prevailing party in such action shall be entitled to recover from the other
party reasonable attorneys' fees to be fixed by the court in which a judgment is entered, as well
as the costs of such suit. For the purposes of this Section 8, the words "reasonable attorneys'
fees" in the case of the Agency include the salaries, costs and overhead of the lawyers employed
in the Office of the City Attorney of the City of San Bernardino.
Section 9. Severability. If any provision of this Covenant shall be declared invalid,
inoperative or unenforceable by final judgment or decree of a court of competent jurisdiction
such invalidity or unenforceability of such provision shall not affect the remaining parts of this
Covenant which are hereby declared by the parties to be severable from any other part which is
found by a court to be invalid or unenforceable.
Section 10. Time is of the Essence. For each provision of this Covenant which states
a specific amount of time within which the requirements thereof are to be satisfied, time shall be
deemed to be of the essence.
Section 11. Notice. Any notice required to be given under this Covenant shall be
given by the Agency or by the Owner, as applicable, by personal delivery or by First Class
United States mail at the addresses specified below or at such other address as may be specified
in writing by the parties hereto:
If to the Agency:
Redevelopment Agency of the City of San Bernardino
Attention: Interim Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 92401
Phone: (909) 663-1044
If to the Owner:
San Bernardino, CA 9240
Phone (909)
Notice shall be deemed given five (5) calendar days after the date of mailing to the party, or, if
personally delivered, when received by the Interim Executive Director of the Agency or the
Owner, as applicable. Each party may change its address by notifying the other party, in writing,
of the party's new address.
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Section 12. Recitals. The Recitals set forth in this Covenant are true and correct and
are incorporated herein by this reference.
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IN WITNESS WHEREOF, the Owner and the Agency have caused this Covenant to be
signed, acknowledged and attested on their behalf by duly authorized representatives in
counterpart original copies which shall upon execution by all of the parties be deemed to be one
original document, all as of the date first written above.
OWNER
Date:
By:
Print:
By:
Print:
AGENCY
Redevelopment Agency
of the City of San Bernardino
Date:
By:
Carey K. Jenkins, Director of Housing and
Community Development
[ALL SIGNATURES MUST BE NOTARIZED]
Approved as to Form:
By:
Agency Counsel
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EXHIBIT "A"
Legal Description of the Property
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EXHIBIT "L"
Promissory Note
4814-7529-0118.1
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REDEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
PROMISSORY NOTE (the "Note")
SECURED BY DEED OF TRUST
(Deferred Loan - Single Family Residence Rehabilitation Loan Program)
NOTE: This Note requires repayment of the principal sum, plus interest, plus
attorneys' fees, court costs and other fees and amounts due under this Note
and the other Agency Loan Documents (as defined below) (the "Loan
Amount"), if certain events occur.
$<<Amounb> Place: The Redevelopment Agency of
The City of San Bernardino
201 North "E" Street, Suite 301
San Bernardino, CA 92401
<<HusbandFirstName>> <<LastName>>
<<WifeFirstName>> <<LastName>>
<<Address 1>>
<<City>> <<State>>, <<PostaICode>>
Date: <<Date>>
FOR VALUE RECEIVED, the undersigned maker ("Maker") jointly and severally
promise(s) to pay to the Redevelopment Agency of the City of San Bernardino, a public
body, corporate and politic (the "Agency"), or order, the principal sum of
<<Writtenamounb> ($<<Amounb>), to pay interest on the unpaid principal amount of this
Note and to pay attorneys' fees, court costs, fees and other amounts due under this Note
and the other Agency Loan Documents (the "Agency Loan"), as follows:
The Note shall have a term of years commencing on the date of
this Note and ending on (the "Maturity Date"). On the Maturity Date,
the Loan Amount shall be due and payable by the Maker to the Agency.
Interest on this Note shall accrue at the rate of Three Percent (3%) simple interest
per annum, commencing upon the date of this Note. All payments of principal and all
interest accruing thereon shall be deferred until the occurrence of one of the following
events: (i) a transfer of title to the property (the "Property") securing this Note (as
described in the Due on Sale Provisions below) (except for a transfer of title by the Maker
to an approved Successor-In-Interest, by the Maker, within ten (10) years after the
execution date of this Note, (ii) the Property is no longer the primary residence of the
Maker, and/or (iii) the Maker refinances the Agency Loan (the "Agency Loan Refinancing")
evidenced by this Note and secured by the deed of trust with assignment of rents, of even
date herewith, as executed and acknowledged by the Maker, as trustor, in favor of the
Agency, as beneficiary (the "Deed of Trust") and/or the Maker refinances the Senior Loan
and secured by the Senior Deed of Trust (the "Senior Loan Refinancing").
:\Agendas\Agenda Attachments\Exhibits\201 0\7.19.1 0 NHSIE Rehab Loan Promissory Note
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Payments shall be made to the Agency in lawful money of the United States of
America at the principal office of the Agency, 201 North "E" Street, Suite 301, San
Bernardino, California 92401, or at such other place as may from time to time be
designated by the Agency. All payments on this Note shall be applied first to all attorneys'
fees, court costs, fees and other amounts due under this Note and under the Deed of
Trust, then to the accrued and unpaid interest due on the Note and then to the principal
due on this Note.
Principal may be prepaid in whole or in part at any time without penalty.
In no event shall the total interest and late charges, if any, payable hereunder
exceed the maximum amount of interest permitted under the usury laws of the State of
California.
This Note is secured by the Deed of Trust of even date signed by Maker naming the
Agency as Beneficiary, and duly filed for record in the office of the County Recorder of
the County of San Bernardino.
If this Note is not paid when due, whether at maturity or by acceleration, or if it is
collected through bankruptcy, probate, or other legal or quasi-legal proceeding whether
before or after maturity, the Maker agrees to pay all costs of collection, including, but not
limited to, reasonable attorneys' fees and court costs.
Should the Maker, at any time after the date of this Note, be in default or breach of
any of the terms or conditions of any of the following: (i) this Note, (ii) the Deed of Trust,
(iii) the Residential Property Maintenance Agreement Containing Covenants Affecting
Real Property (Single Family Residence Rehabilitation Loan Program) (the "Maintenance
Agreement"), executed and acknowledged by and between the Maker and the Agency,
(iv) any other instruments, documents or agreements evidencing, securing, guaranteeing
or relating to the loan evidenced by the Note and secured by the Deed of Trust
encumbering the Property (collectively, the "Agency Loan Documents"), and/or (v) the
Senior Loan Documents, or anyone of them, the entire unpaid principal balance of this
Note, all accrued and unpaid interest thereon and all attorneys' fees, court costs, fees
and amounts due under this Note and the other Agency Loan Documents shall, at
the option of the Agency, and without demand or notice, become immediately due and
payable.
Due on Sale Provisions:
In the event that the Maker should sell, transfer, or otherwise convey the real
property securing this Note, whether voluntarily or by operation of law, or as a result of the
death of the Maker, and whether by deed, contract of sale, or otherwise, or the agreement
to do so, at any time within the first ten (10) years after the execution by the Maker of this
Note, other than a sale, transfer or conveyance to a Successor-In-Interest who has been
approved in writing by the Agency, or the refinancing by the Maker of the Agency Loan
and/or of the Senior Loan, then all obligations secured by this Note, irrespective of the
2
CDC/2010-43
maturity dates expressed herein, shall, at the option of the Agency, immediately become
due and payable.
In the event that the Property securing this Note which now or hereafter may be
encumbered by the Deed of Trust shall cease to be the Maker's primary residence, then all
obligations secured by this Note, irrespective of the maturity dates expressed herein, shall,
at the option of the Agency, immediately become due and payable.
In the event that the Maker shall further encumber the Property securing this Note,
or otherwise cause a reduction in priority which the Deed of Trust securing this Note
enjoys as of the date of its recordation, then all obligations secured by this Note,
irrespective of the maturity dates expressed herein, shall, at the option of the Agency,
immediately become due and payable.
None of the provisions hereof and none of the Agency's rights or remedies
hereunder on account of any past or future default shall be deemed to have been waived
by any indulgence granted by the Agency to the Maker.
Maker hereby waives demand, protest, and notice of demand and protest, and the
Maker hereby waives, to the extent authorized by law, any and all homestead and other
exemption rights that otherwise would apply to the debt evidenced by this Note.
The Maker has executed this Note as of its date.
"Maker"
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CDC/2010-43
EXHIBIT "M"
Target Area
4814-7529-0118.1
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Legend
NHSIE (11,697 Residential Parcels)
.. RHOC (6,745 Residential Parcels)
Low-Mod Residential - COBG Eligible
Annexation 3067
~ See Footnote 1
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Footnote 1: ,
Annexation 3067 (6 Parts) have been challenged in the pending Huke
versus LAFCO City case, which was filed in court on February 2'5y.2Q1 O.
City of San Bernardino - NHSIE & RHDC
Exhibit C
Neighborhood Housing Services of the Inland Empire C'NHSIE")
Homebuyer Education Services Program Agreement
CDC/2010-43
2010
HOMEBUYER EDUCATION PROGRAM AGREEMENT
(2010-2013 HOME Funds)
(Neighborhood Housing Services of the Inland Empire, Inc.)
THIS HOMEBUYER EDUCATION PROGRAM AGREEMENT (the "Agreement") is made
and entered into this 2nd day of August 2010 (the "Effective Date"), by and between the
Redevelopment Agency of the City San Bernardino, a public body, corporate and politic
(hereinafter referred to as the "Agency"), located at 201 North "E" Street, Suite 301, City of San
Bernardino (the "City"), State of California (the "State") 92401, and Neighborhood Housing Services
of the Inland Empire, Inc., a California non-profit corporation (the "NHSIE"), located at 1390 North
"D" Street, San Bernardino, California 92405. The parties agree as follows:
RECITALS
WHEREAS, the City has received formula HOME Investment Partnership allocation for Fiscal
Years 2010 and 2011 and anticipates receiving said funds yearly thereafter from the federal
Department of Housing and Urban Development ("HUD") to carry out eligible activities in accordance
with federal program requirements at 24 CFR 92 (the "Program"), and the Agency is designated to
administer such Program on behalf of the City; and
WHEREAS, the Agency desires to pay and to allocate to NHSIE from the HOME Funds the
sum of Three Hundred Dollars ($300) for each prospective household who resides or who works in the
City and who completes the Homebuyer Education Program, as described in Exhibit "A" attached
hereto and incorporated herein by this reference, for a period of up to three (3) years to pay to NHSIE
the Homebuyer Education Program (the "Homebuyer Education Program") operating expenses
incurred by NHSIE and as permitted per 24 CFR 92.208(a); and
WHEREAS, the Agency desires to execute an Agreement with NHSIE that has a term of three
(3) years, renewable annually subject to the City receiving its annual Federal HOME Grant from HUD;
and
WHEREAS, NHSIE is desirous of participating in activities eligible under HOME and further
agrees that the beneficiaries of its activities under the Program and this Agreement are or will be
individuals or families who meet the income eligibility guidelines at Title 24 CFR part 92.217; and
WHEREAS, the Agency deems the activities to be provided by NHSIE as consistent with and
supportive of the Program, the HOME Program, and of the Homebuyer Education Program and is
consistent with the City's 2010-2015 Consolidated Plan and Housing Element; and
WHEREAS, the Agency will monitor and administer NHSIE to ensure compliance with all
Program, all HOME Program and all Homebuyer Education Program requirements, and that NHSIE
will comply with all Program requirements under 24 CFR 92.
4829-7016-5254.1829-7016-5254.1 1
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NOW, THEREFORE, IN CONSIDERATION OF THE RECITALS MENTIONED ABOVE,
THE MUTUAL PROMISES OF THE AGENCY AND OF NHSIE IN THIS AGREEMENT AND
FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY
OF WHICH ARE HEREBY ACKNOWLEDGED BY THE AGENCY AND BY NHSIE, THE
AGENCY AND NHSIE MUTUALLY AGREE AS FOLLOWS:
1. CERTIFYING THE NON-PROFIT STATUS OF NHSIE:
A. Legal Status. NHSIE is a non-profit organization and is organized under state or local laws, as
evidenced by a charter or by articles of incorporation. No part of the net earnings of NHSIE
inure to the benefit of any member, founder, contributor, or individual, as evidenced by the
same. NHSIE has a tax exemption ruling from the Internal Revenue Service ("IRS") under
Section SOI(c) of the Internal Revenue Code of 1986, as evidenced by a SOI(c) certificate from
the IRS. NHSIE has among its purposes the providing of decent housing that is affordable to
low-and moderate-income individuals or families, as evidenced by a statement in the charter, or
in the articles of incorporation, by-laws or resolutions ofNHSIE.
B. Capacity. NHSIE conforms to the financial accountability standards of 24 CFR 84.21,
"Standards for Financial Management Systems", as evidenced by a notarized statement by the
CEO or by the president ofNHSIE, a CPA or a HUD-approved audit summary. NHSIE has a
demonstrated capacity for carrying out activities assisted with HOME Funds and affordable
housing programs through the stated experience of key staff members or contract(s) with
consultants who have experience with related projects to train key staff. Also, NHSIE has
shown a history of serving the community.
C. Relationship with For-Profit Entities. NHSIE is not controlled nor receives directions from
individuals or entities seeking profit from NHSIE, as evidenced by the by-laws ofNHSIE or by
a memorandum of understanding relating to NHSIE. NHSIE may be sponsored or created by a
for-profit entity, however:
1. The for-profit entity's primary purpose does not include the development or management of
housing, as evidenced in its by-laws; and
2. NHSIE is free to contract for goods and for services from vendor(s) of its own choosing, as
evidenced by the by-laws, the charter or the articles of incorporation ofNHSIE.
II. SCOPE OF SERVICES AND COMPENSATION:
A. Amount of Grant: Provided the conditions set forth in Section I above have been met, the
Agency agrees to pay to NHSIE from the HOME Funds the sum of Three Hundred Dollars
($300) for each prospective household who resides in or who works in the City and who
completes the Homebuyer Education Program provided by NHSIE, as described in Exhibit "A"
hereto, to pay and to compensate NHSIE for the Homebuyer Education Program operating
expenses that have been incurred by NHSIE and that are permitted per 24 CFR 92.208(a), for
fiscal year 2010-2011, for fiscal year 2011-2012, and for fiscal year 2012-2013, subject to
federal HOME Funds being available to the City for the Homebuyer Education Program.
4829-7016-5254.1829-7016-5254.1
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CDC/2010-43
B. Use of Grant Funds: The HOME Funds will be used to pay the operating expenses ofNHSIE,
including, but not limited to, the costs of salaries, wages, and other employee compensation and
benefits, employee education, training, rent, utilities, taxes, insurance, equipment, materials and
supplies and more specifically, to implement and to administer the Homebuyer Education
Program as described in Exhibit "A" hereto.
1. Tasks to be performed. NHSIE shall develop, manage and support the Homebuyer
Education Program for low and moderate-income households through projects that include,
but are not limited to, assistance to eligible home buyers, marketing and outreach services
pertaining to the expansion, improvement, or preservation of low-and moderate-income
housing (See Exhibit "A" hereto).
2. Schedule for Completion of Tasks/Term of Agreement. Upon the execution of this
Agreement, NHSIE agrees to provide the services described in this Agreement commencing
on August 1, 2010 through June 30, 2013, subject to and conditioned upon annual renewal
by the Agency as provided below and the City receiving its annual allocation of federal
HOME Funds for the three (3) year term of this Agreement. Should the City no longer
receive the federal HOME Funds during the term of this Agreement, this Agreement shall
automatically terminate without any notice from one party to the other party and the parties
shall have no further obligation to each other relative to this Agreement.
3. Annual Renewal Criteria: Each year as part of the Agency's budget process, Agency staff
shall review the Contractor's performance under this Agreement, including, but not limited
to whether goals have been met as shown by the quarterly updates. In the event the Agency
determines that the Contractor's goals need to be modified as set out in this Agreement, the
Agency may modify the goals and compensation therefore.
C. Other Program Requirements: NHSIE must carry out each activity in compliance with all
federal laws and regulations described in Subpart H of 24 CFR 92 and outlined hereinafter,
except that NHSIE does not assume the Agency's or the City's responsibility for environmental
review in Section 92.352 or the intergovernmental review process in Section 92.357. These
federal laws and regulations must be complied with as follows:
a. Equal Opportunity. No person shall be excluded from participation in, be denied the
benefits of or be subjected to discrimination under any program or activity funded in whole
or in part with HOME Funds. In addition, HOME Funds must be made available in
accordance with all laws and regulations listed in Section 92.350(a).
b. Fair Housing. In accordance with the certification made with its housing strategy, each
participating jurisdiction must affirmatively further fair housing. Actions described in
Section 570.904(c) of Title II of the Cranston-Gonzales National Affordable Housing Act
will satisfy this requirement.
c. Conflict of Interest. NHSIE will hereby comply with all requirements set forth regarding
conflict of interest provisions as they apply in Section 92.356.
d. Debarment and Suspension. As required in Section 92.357, NHSIE will comply with all
debarment and suspension certifications.
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Indemnification. NHSIE shall indemnify, to defend with legal counsel reasonably
acceptable to the Agency, to protect and to hold the City and the Agency, and their
respective directors, officers, members, managers, consultants, contractors, employees,
agents and attorneys, and the successors and assigns of each of them (singularly and
collectively, the "Indemnified Parties" which defined term shall also include the City and
the Agency), harmless from and against all actions, causes of action, claims, demands,
liabilities, damages, losses, liabilities, obligations, judgments, suits, costs, expenses and
fees (including, without limitation, reasonable attorneys' fees, court costs and expert fees of
any nature whatsoever), now or hereafter arising from or related to: (i) any act or omission
of NHSIE and/or of any of NHSIE'S directors, officers, members, managers, consultants,
contractors, subcontractors, materialmen, laborers, any other person or entity furnishing or
supplying work, services, goods, or supplies in connection with the performance of this
Agreement, employees and agents, and the successors and/or assigns of each of them
(singularly and collectively, the "Indemnifying Parties" which defined term shall also
include NHSIE), in performing, or failing to perform, its obligations hereunder, (ii) any
default by NHSIE under this Agreement, subject to any applicable cure period, (iii) any
violation by any of the Indemnifying Parties of any applicable federal, state, municipal or
local laws, statutes, codes, regulations, ordinances, rules, decrees, orders, or any
requirements of any government authority, now or hereafter in existence, as amended from
time to time, including, without limitation, any environmental laws (collectively, the
"Laws"), (iv) any warranty or representation made in this Agreement that becomes false
and untrue, (v) death, bodily injury and/or personal injury to any person, and/or (vi) any
destruction, loss or damage to real property or personal property. This indemnification
provision shall survive the execution, delivery, performance and/or termination of this
Agreement. Without limiting NHSIE'S indemnification of the Indemnified Parties, NHSIE
shall provide and maintain, at its sole cost and expense during the term of this Agreement,
the insurance described below covering, without limitation, the operations ofNHSIE. Such
insurance shall be provided by insurer(s) satisfactory to the Agency and evidence of such
insurance satisfactory to the Agency shall be delivered to the Interim Executive Director of
the Agency and/or to his designee no later than the Effective Date of this Agreement.
Insurance. No later than the Effective Date of this Agreement, NHSIE shall pay, shall
procure and shall maintain during the term of this Agreement the insurance policies and
insurance coverage provided for herein and shall furnish, or shall cause to be furnished, to
the Agency duplicate originals or appropriate certificates of the following insurance: (i)
commercial indemnity and liability insurance in the amount of One Million Dollars
($1,000,000.00) combined single limit per occurrence, naming the Agency and the City and
the elected officials, officers, employees, attorneys and agents of each of them as additional
insureds (collectively, the "Additional Insureds") with said insurance covering
comprehensive general liability including, but not limited to, contractual liability, acts of
subcontractors, premises-operations, explosion, collapse and underground hazards, if
applicable, broad form property damage, and personal injury including libel, slander and
false arrest, (ii) comprehensive automobile liability insurance covering owned, non-owned
and hired vehicles, combined single limit in the amount of One Million Dollars
($1,000,000.00) per occurrence, (iii) workers' compensation insurance in such insurance
coverage amounts as statutorily required and employer's liability insurance, combined
single limit in the amount of $1,000,000, and (iv) errors and omissions and professional
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liability insurance, combined single limit in the amount of One Million Dollars
($1,000,000) per occurrence. Any and all insurance policies required hereunder shall be
obtained from insurance companies admitted in the State of California and rated at least A:
XII in the most current Best's Key Rating Insurance Guide. All said insurance policies
shall provide that they may not be canceled unless the Agency and the City receive written
notice of cancellation at least thirty (30) calendar days prior to the effective date of
cancellation. Any and all insurance obtained by NHSIE shall be primary to any and all
insurance which the Agency and/or the City may otherwise carry, including self insurance,
which for all purposes of this Agreement shall be separate and apart from the requirements
of this Agreement. Appropriate insurance means those insurance policies approved by the
Agency Counsel consistent with the foregoing. Any and all insurance required hereunder
shall be maintained and kept in force during the term of this Agreement. NHSIE waives
subrogation and agrees that NHSIE and the Agency and the City are co-insured. NHSIE
will cause each insurance carrier obtained by it to waive any subrogation claim. The
insurer shall have no right of subrogation against the Agency, against the City or against
any other Additional Insureds. The Agency, the City and the other Additional Insureds
shall be named as additional insureds on each insurance policy.
D. Request for Disbursement of Funds:
1. NHSIE shall invoice the Agency once each month for payment by the Agency to NHSIE
from the HOME Funds in the amount of $300 for each prospective household of the
Homebuyer Education Program who resides in or who works in the City and who
completes the Homebuyer Education Program provided by NHSIE, for the three (3) year
term. The Agency shall have thirty (30) calendar days from the receipt of the invoice from
NHSIE to pay the invoice from the HOME Funds on the condition that each monthly
invoice is substantiated by sufficient evidence to establish the following: (i) the name,
address, and phone number of each participant who has completed the Homebuyer
Education Program during that month, (ii) sufficient proof that each participant resides in or
is employed in the City, and (iii) each participant must complete the Homebuyer Education
Program.
E. Records and Reports.
1. The Agency will require that NHSIE maintain the following records and reports in order to
assist the Agency in meeting the record keeping and the reporting requirements of the
Agency:
a. Records, including individual project and construction records and a running log
demonstrating compliance with the applicable provisions of Section 92.508(2) of the
HOME Investment Partnership Program; and
b. Continuing compliance with the Program, with the HOME Program and with the
Homebuyer Education Program shall be certified and reported to the Agency on a
quarterly basis to comply with HOME Investment Partnership Program reporting
requirements; and
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c. Any other legal reports and/or records requested by the Agency relating to or to
document the provisions of all affordable housing projects or programs.
2. NHSIE shall retain and shall provide access to all records for the period of five (5) years
from the Effective Date of this Agreement in accordance with the requirements of Section
92.508(6)(c) and (d).
III. GENERAL PROVISIONS:
A. Enforcement of the Agreement.
1. The City or the Agency, at its discretion, may terminate this Agreement, in whole or in part,
by giving NHSIE written notice in accordance with 24 CFR 85.44, which provides in part
that suspension or termination may occur if NHSIE materially fails to comply with any
term of this Agreement.
B. Monitoring
1. The Agency is responsible for managing the day-to-day operations of the HOME program
on behalf of the City, for monitoring the performance of all entities receiving HOME Funds
from the Agency to ensure compliance with the requirements of Subpart K, 24 CFR 92, and
for taking appropriate action when performance problems arise.
2. Not less than annually, the Agency will review the activities of NHSIE, to assess
compliance with the requirement of Subpart K, 24 CFR 92, as set forth in this Agreement.
C. Notices. Any notice requirement set forth herein shall be deemed satisfied three (3) calendar
days after mailing of the notice first-class United States certified mail, postage prepaid,
addressed to the appropriate party as follows:
NHSIE: Neighborhood Housing Services of the Inland Empire, Inc.
C/O Executive Director
1390 North "D" Street
San Bernardino, CA 92405
AGENCY: Redevelopment Agency of the City of San Bernardino
C/O Interim Executive Director
201 North "E" Street, Suite 301
San Bernardino, CA 92401
Such addresses may be changed by notice to the other party given in the same manner as
provided above.
D. Attorneys' Fees. In addition to any other remedies provided hereunder or available pursuant to
law, if either party brings an action or proceeding to enforce, protect or establish any right or
remedy hereunder, the prevailing party shall be entitled to recover from the other party its costs
of suit and reasonable attorneys' fees. The costs, salary and expenses of the City Attorney and
members of his office in enforcing the Agreement on behalf of the City or of the Agency shall
be considered as "attorneys' fees" for the purposes of this paragraph.
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E. No Third Parties Benefited. This Agreement is made and entered into for the sole protection
and benefit of the City and of the Agency, its successors and assigns, and NHSIE, its permitted
successors and assigns, and no other person or persons shall have any right of action hereon.
F. Agency to File Notices. NHSIE irrevocably appoints, designates, and authorizes the Agency, as
its agent (said agency being coupled with an interest) to file at its option for record any notices
of completion, cessation of labor, or any other notice that the Agency deems necessary or
desirable to protect its interest hereunder.
G. Actions. The City or the Agency shall have the right to commence, appear in, or defend any
action or proceeding purporting to affect the rights, duties, or liabilities of the parties
hereunder, or the disbursement of any proceeds of the Agency allocation of HOME Funds.
H. Successors and Assigns. The terms hereof shall be binding upon and inure to the benefit of the
successors and assigns of the parties hereto; provided, however, that no assignment ofNHSIE's
rights hereunder shall be made, voluntarily or by operation of law, without the prior written
consent of the City or of the Agency, and that any such assignment without said consent shall
be void.
I. Construction of Words. Except where the context otherwise requires, words imparting the
singular number shall include the plural number and vice versa, words imparting persons shall
include firms, associations, partnerships and corporations, and words of either gender shall
include the other gender.
J. Partial Invalidity. If any provision of this Agreement shall be declared invalid, illegal, or
unenforceable, the validity, legality, and enforceability of the remaining provisions hereof shall
not in any way be affected or impaired.
K. Governing Law. This Agreement and any other instruments given pursuant hereto shall be
construed in accordance with and be governed by the laws of the State of California and the
pertinent HOME regulations.
L. Amendment. This Agreement may not be changed orally, but only by agreement in writing
signed by NHSIE and by the Agency.
M. Approvals. Where an approval or submission is required under this Agreement, such approval
or submission shall be valid for purposes of this Agreement only if made in writing.
N. Captions and Headings. Captions and headings in this Agreement are for convenience of
reference only and are not to be considered in construing this Agreement.
O. Entire Agreement. This Agreement shall be executed in triplicate, each of which is deemed to
be an original. This Agreement is comprised of _ pages inclusive of Exhibit "A", which
constitutes the entire understanding and agreement of the parties. This Agreement integrates all
of the terms, covenants and conditions mentioned herein or incidental hereto, and supersedes
all negotiations or previous agreements between the parties.
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P. Authority. The individuals executing this Agreement and the instruments referenced herein on
behalf of NHSIE each represent and warrant that they have the legal power, right and actual
authority to bind NHSIE to the terms and conditions hereof and thereof.
Q. Recitals. The recitals of this Agreement are true and correct and are incorporated herein by this
reference.
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IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed the
day and year first above written.
NHSIE
Neighborhood Housing Services of the Inland Empire,
Inc., a California non-profit corporation
----P~
By: v<J ~-r/'--
PI'-IIdcn Moore, Exec~tive Director
D""vicl 1<.("/''")'':'
AGENCY
Redevelopment Agency of the City of San Bernardino,
a public body, corporate and politic
~:
Emil A. Marzullo, Interim Executive Director
By:
Approved as to Form:
By: ~~~
Agency oun 1
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Exhibit "A"
1. SCOPE OF WORK
A. To provide homebuyer education classes for not less than 300 participants who reside or work
within the City of San Bernardino per year as described and detailed in Section 2 below, and to
provide homebuyer education classes to homebuyers referred by the Agency. To conduct off-site
marketing and outreach ofNHSIE's and the Agency's Homebuyer's Assistance Programs. NHSIE
will provide outreach and marketing to both public and private sector entities. A total of not less
than nine (9) public or private businesses and/or organizations per year will be targeted in the City
of San Bernardino.
B. NHSIE shall heavily target and market to San Bernardino residents and shall regularly track the
number of Homebuyer Education Program participants who eventually become homeowners
within the City of San Bernardino. NHSIE shall provide the City and the Agency with monthly
reports detailing, without limitation, the participants and the families completing the Homebuyer
Education Program and their current relationship to the City with respect to their employment
and/or to their residence within the City. Such monthly reports shall be reasonably acceptable to
the Agency and to the City and shall include, without limitation, the number of families purchasing
a home within the City.
4829-7016-5254.1829-7016-5254.1 lO
P:\Agendas\Agenda Attachments\Agenda Attachments\Agnnts-Amend 2010\8-2-10 NHSIE Homebuyer Education Program Agreement
2. HOMEBUYER EDUCATION
A. Real Estate, Title and Escrow
. Explaining Real Estate Purchase Contract
. Contingencies and Counteroffers
· Title Report
· Escrow Disclosures
· Escrow Fees
B. The Mortgage Process
· Types of Mortgage Loans
. Getting Pre-qualified and Receiving a Loan
Commitment
· The 1003 Application
· Good Faith Estimate
C. Home Inspections
· What is a Home Inspection?
. Difference between an Inspection Report
and an Appraisal
· Selecting a Home Inspector
. Addressing Health and Safety Issues
D. Home Maintenance and Preventative Care
. The Value of Home Maintenance
· Basic Tools and Equipment for
Maintenance
. Heat, Venting and Air Conditioning
. Plumbing System, Water Supply, Drains
· Home Cleaning Methods
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E. Homeowner's Insurance
. Different Types of Insurance Companies
. Different Types of Insurance Policies
. Coverage Needed Before Closing: Basic Five
. Additional Coverage: Medical, Liability,
Homeowner's Policy, Earthquake and Flood
Insurance, etc.
F. Foreclosure Prevention
· A voiding Late Payments
· Responding to Collection Letters
. Repayment Plans, Forbearances and Loan
Modifications
· Alternatives to Foreclosure
G. Fair Housing and Predatory Lending
· Predatory Lending
. Fair Housing: Know Your Rights
H. Community Empowerment and Civic Participation
· Getting Involved in Your Community
. Community Involvement Activities
· Neighborhood Watch Programs
11