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RESOLUTION NO. CDC/2010-57
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING
THE ALLOCATION OF $1,600,000 OF LOW AND MODERATE INCOME
HOUSING SET -ASIDE FUNDS TO MARY ERICKSON COMMUNITY
HOUSING, INC. ("MECH") AND APPROVING AND AUTHORIZING THE
INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE
AMENDMENT NO.2 TO THE 2009 NEIGHBORHOOD STABILIZATION
PROGRAM MASTER AGREEMENT BY AND BETWEEN THE AGENCY
AND MECH
WHEREAS, on July 20,2009, the Community Development Commission of the City of San
Bernardino ("Commission") approved the 2009 Neighborhood Stabilization Program Developer
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Master Agreement ("Master Agreement") between the Agency and the Mary Erickson Community
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Housing, Inc., ("MECH"), through which MECH was charged to implement the Neighborhood
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Stabilization Program ("NSP") activity known as the Housing Opportunities for Households at or
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below 50% of AMI (the "Rehabilitation and Rental Program"); and
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WHEREAS, on December 21, 2009, the Commission approved Amendment No. 1 to the
Master Agreement between the Agency and MECH which allocated additional funds to MECH in
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furtherance of the Rehabilitation and Rental Program; and
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WHEREAS, the Agency now deems it desirable to enter into Amendment No.2 to the
Master Agreement ("Amendment No.2") in the form as attached hereto as Exhibit "A" with MECH
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to provide an additional $1,600,000 in Tax Increment Housing Set-Aside Funds ("Low and
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Moderate Income Funds") for the purpose of acquiring, rehabilitating and operating identified 4-
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plex, multi-family, residential properties within the City of San Bernardino ("City") in furtherance
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of the Rehabilitation and Rental Program as defined in the Master Agreement; and
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WHEREAS, the Agency is desirous of assisting MECH in implementing the Rehabilitation
and Rental Program and has previously provided $2,620,000 in NSP funding and $2,000,000 in
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Low and Moderate Income Funds in furtherance of MECH' s NSP efforts; and
WHEREAS, MECH has obligated as of the effective date of this Resolution 95.3% of the
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1 aggregate funding provided by the Agency after having acquired ten (10) of twenty-five (25)
2 targeted properties as identified in the Master Agreement; and
3 WHEREAS, the expenditure rate for the Rehabilitation and Rental Program as described
4 above indicates that MECH will need additional funding in order to complete its assigned NSP
5 activities; and
6 WHEREAS, the Agency has determined that the execution of the Rehabilitation and Rental
7 Program pursuant to the Master Agreement and Amendment No.2 and the fulfillment generally of
8 the purposes of the Master Agreement are in the vital and best interests of the City and the Agency.
9 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE
10 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS
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12 Section 1. The facts set forth in the Recitals to this Resolution are accurate and correct in all
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14 Section 2. The Commission hereby approves Amendment No.2 and hereby authorizes the
15 Interim Executive Director of the Agency to execute Amendment No.2 on behalf of the Agency
16 together with such technical and conforming changes as may be recommended by the Executive
17 Director, or Interim Executive Director, as applicable, of the Agency and approved by the Agency
18 Counsel.
19 Section 3. This Resolution shall take effect from and after its date of adoption by this
20 Commission.
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CDC/2010-57
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING
THE ALLOCATION OF $1,600,000 OF LOW AND MODERATE INCOME
HOUSING SET -ASIDE FUNDS TO MARY ERICKSON COMMUNITY
HOUSING, INC. ("MECH") AND APPROVING AND AUTHORIZING THE
INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE
AMENDMENT NO.2 TO THE 2009 NEIGHBORHOOD STABILIZATION
PROGRAM MASTER AGREEMENT BY AND BETWEEN THE AGENCY
AND MECH
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community
Development Commission of the City of San Bernardino at a meeting thereof, held on the
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1st day of November ,2010, by the following vote to wit:
Commission Members:
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MARQUEZ
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DES JARDINS
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BRINKER
14 SHORETT
15 KELLEY
16 JOHNSON
17 MC CAMMACK
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Ayes Nays Abstain Absent
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X
--X-
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X
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Secretary .
21 The foregoing Resolution is hereby approved this 1//7~ day of November
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Approved as to Form:
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27 By:
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,2010.
~erson
Community Development Commission
of the City of San Bernardino
)\..
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CDC/2010-57
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EXHIBIT" A"
Amendment No.2 to the
2009 Neighborhood Stabilization Program Master Agreement
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CDCj2010-57
AMENDMENT NO.2
TO THE
NEIGHBORHOOD STABILIZATION PROGRAM
DEVELOPER MASTER AGREEMENT
BY AND BETWEEN
THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
AND
MARY ERICKSON COMMUNITY HOUSING, INC.
This Amendment No.2 to the Neighborhood Stabilization Program Master Agreement (this
"Amendment No.2") is entered into on November I, 201 0, by and between the Redevelopment
Agency of the City of San Bernardino (the "Agency"), a public body, corporate and politic, and Mary
Erickson Community Housing, Inc., a nonprofit corporation (the "Developer"), and is entered into in
consideration of the facts set forth in the following Recital paragraphs:
-RECITALS-
A. The Developer and the Agency have previously entered into an agreement entitled
"Neighborhood Stabilization Program Developer Master Agreement", dated as of July 20, 2009 (the
"Master Agreement"), through which the Developer was charged to implement the Neighborhood
Stabilization Program ("NSP") activity known as the Housing Opportunities for Households at or
below 50% of AMI (the "Rehabilitation and Rental Program").
B. On December 21, 2009, the Community Development Commission of the City of San
Bernardino (the "Commission") approved Amendment No.1 to the Master Agreement between the
Agency and the Developer which allocated additional funds to the Developer in furtherance of the
Rehabilitation and Rental Program.
C. The Agency now deems it desirable to enter into Amendment No.2 to the Master
Agreement ("Master Amendment No.2") with the Developer to provide an additional $1,600,000 in
Tax Increment Housing Set-Aside Funds ("Low and Moderate Income Funds") for the purpose of
acquiring, rehabilitating and operating identified 4-plex, multi-family, residential properties within the
City in furtherance of the Rehabilitation and Rental Program as defined in the Master Agreement.
D. The Agency is desirous of assisting the Developer in implementing the Rehabilitation
and Rental Program and has previously provided $2,620,000 in NSP funding and $2,000,000 in Low
and Moderate Income Funds in furtherance of the Developer's NSP efforts.
E. The Developer has obligated as of the effective date of this Amendment No.2 ninety
five percent (95%) of the aggregate funding provided by the Agency after having acquired ten (10) of
twenty-five (25) targeted properties as identified in the Master Agreement.
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F. The expenditure rate for the Rehabilitation and Rental Program as described above
indicates that the Developer will need additional funding in order to complete its assigned NSP
activities.
G. The Agency has determined that the execution of the Rehabilitation and Rental Program
pursuant to the Master Agreement and Master Amendment No.2 and the fulfillment generally of the
purposes of the Master Agreement are in the vital and best interests of the City and the Agency.
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND
CONDITIONS CONTAINED HEREIN, THE AGENCY AND THE DEVELOPER AGREE AS
FOLLOWS:
Section 1. References to the Master A2reement; Defined Terms. (a) Unless the context
of the usage of a term or phrase in this Amendment No.2 may otherwise require, the meaning of
words and phrases as contained in this Amendment No.2, which are indicated by an initially
capitalized letter, shall be the same as set forth in the Master Agreement.
(b) The information contained in the Recitals as set forth in this Amendment No.2 is true and
correct in all respects.
Section 2. Specific Amendments to the Master A2reement.
(a) The Master Agreement is hereby amended by this Amendment No.2 in the manner as
indicated in this Section 2 and which changes and amendments shall be effective from and after the
date of approval of this Amendment No.2 by the Developer and the Agency and execution hereof by
the parties.
(b) Section 4.C. of the Master Agreement IS hereby amended by adding the following
paragraph at the end of said Section:
"If deemed necessary for the continuation of the Project, the Agency may, in its sole discretion,
provide additional Low and Moderate Income Funds equal to $1,600,000 to the Developer pursuant to
this Agreement."
( c) Section 13 of the Master Agreement is hereby amended by adding the following paragraphs
at the end of said Section:
Section 3 Requirements. Because the amount of this contract exceeds $100,000 and is funded
partially with NSP funds, Developer and Agency agree to the following provisions:
(i) The work to be performed under this contract is subject to the requirements of
Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 17018
(Section 3). The purpose of Section 3 is to ensure that employment and other economic or
HUD-assisted projects covered by Section 3 shall, to the greatest extent feasible, be directed to
low-and very low-income person, particularly persons who are recipients of HUD assistance
for housing.
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(ii) The Agency and Contractor agree to comply with HUD's regulations in 24 CFR
part 135, which implement Section 3. As evidenced by their execution of this contract, Agency
and Contractor certify that they are under no contractual or other impediment that would
prevent them from complying with the part 135 regulations.
(iii) The Contractor agrees to send to each labor organization or representative of
workers with which the contractor has a collective bargaining agreement or other
understanding, if any, a notice advising the labor organization or workers' representative of the
contractor's commitments under this Section 3 clause, and will post copies of the notice in
conspicuous places at the work site where both employees and applicants for training and
employment positions can see the notice. The notice shall describe the Section 3 preference,
shall set forth minimum number and job titles subject to hire, availability of apprenticeship and
training positions, the qualifications for each; and the name and location of the person(s) taking
applications for each of the positions; and the anticipated date the work will begin.
(iv) The Contractor aggress to include this Section 3 clause in every subcontract
subject to compliance with regulations in 24 CFR part 135 (i.e. for over $100,000) and agrees
to take appropriate action, as provided in an applicable provision of the subcontract or in this
Section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24
CFR part 135. The Contractor will not subcontract with any subcontractor where the
Contractor has notice or knowledge that the subcontractor has been found in violation of the
regulations in 24 CFR part 135.
(v) The Contractor will certify that any vacant employment positions, including
training positions, that are filled (i) after the contractor is selected but before the contract is
executed; and (ii) with persons other than those to whom the regulations of 24 CFR part 135
require employment opportunities to be directed, were not filled to circumvent the Contractor's
obligations under 24 CFR part 135.
(vi) Noncompliance with HUD's regulations in 24 CFR part 135 may result in
sanctions, termination of this contract for default, and debarment or suspension from future
HUD assisted contracts.
Section 3. Effect of Amendment No.2. Except as modified or amended by this
Amendment No.2, all of the provisions of the Master Agreement shall remain in full force and effect
following the effective date of this Amendment No.2.
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IN WITNESS WHEREOF, the parties hereto have accepted and made and executed this
Amendment No.2 upon the terms and conditions and with the provisions as set forth above and as of
the date first written above.
AGENCY
Redevelopment Agency of the City of San Bernardino,
a public body, corporate and politic
Date:
II !it/WIld
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By: <:to .
Emil A. Marzullo, Interim Executive Director
Approved as to Form and Legal Content:
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By: C',. (pO 1.( it. '-1 i!Cl:.3 (,1vL
Agency Counsel' v
DEVELOPER
Mary Erickson Community Housing, Inc.,
a California nonprofit public benefit corporation
Date:
'ilsj\~
By:
b1tM1 /11M
Title:
E~r>( 0t)\JQ, IJ,'rC?L hi
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