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HomeMy WebLinkAboutR38-Economic Development CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY ORIGINAL FROM: Emil A. Marzullo Interim Executive Director SUBJECT: Neighborhood Housing Services of the Inland Empire ("NHSIE") Qnarterly Update of Program Activities DATE: April 28, 2009 SvnoDsis of Previous Commission/CounciVCommittee Action{s): On April 23, 2009, Redevelopment Committee Members Johnson, Baxter and Brinker unanimously voted to recommend that the Community Development Commission consider this action for approval. Recommended Motion(s): (Communitv Development Commission) MOTION: That the Community Development Commission of the City of San Bernardino receive and file the Neighborhood Housing Services of the Inland Empire ("NHSIE") Quarterly Report through March 31, 2009 Contact Person(s): Carey K. Jenkins Phone: (909) 663-1044 All Project Area(s): Supporting Data Attached: N/A Ward(s): o Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 Letter(s) Funding Requirements: Amount: $ -0- Source: N/A Budget Authority: N/A Signature: ~ Fiscal Review: / ervices Director __ _______________________~ __________ ______________________________________________________________________________________________ _____________________________________n______________________________________ Commission/Council Notes: PIAgendas\Comm Dev CommissionlCDC 20()l)I05-04-09 NHSIE Program Activities SRdoc COMMISSION MEETING AGENDA Meeting Date: 05104/2009 Agenda Item Number: fJ. '3 g ECONOMIC DEVELOPMENT AGENCY STAFF REPORT NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE ("NHSIE") QUARTERLY UPDATE OF PROGRAM ACTIVITIES BACKGROUND: Since September of 1999, the Redevelopment Agency of the City of San Bernardino ("Agency") has contracted with Neighborhood Housing Services of the Inland Empire ("NHSIE") to perform certain functions associated with the Agency's housing program. These services include implementing the Single-Family Beautification Loan/Grant Program, Mobile Home Grant Program and the Homebuyer Education Program (collectively, "Programs"). Smele-Famzlv Beautification Grant/Loan Program: Based on residency and income eligibility criteria, homeowners can access a grant not to exceed $15,000 for the beautification of the exterior of their property and/or receive a low-interest deferred payment loan not to exceed $50,000 for health and safety repairs and overall rehabilitation to their property. Mobile Home Grant Proeram: Based on residency and income eligibility criteria, homeowners can access a grant of up to $5,000 to undertake certain housing rehabilitation and correction work necessary to improve the quality of their mobile homes. Homebuver Education Prozram: A sixteen (16) hour course held for the purpose of educating first-time homebuyers on the homeownership process. Topics include; Real Estate Purchase Contract, Mortgage Loan Products and Insurance Policies. In addition, the class educates homeowners in home maintenance and property preventive care. This class is free of charge to attendees fulfilling the Homebuyer Assistance Program ("HAP") requirement and a Fifty-Dollar ($50) charge to attendees fulfilling the Beautification Grant/Loan Program requirements. On October 20, 2008, the Agency's Integrated Housing Strategy ("Strategy") was approved by the Community Development Commission of the City of San Bernardino ("Commission"). Included in the Strategy is a key component of single-family homeownership and neighborhood revitalization, designed to enhance residential neighborhoods and promote home ownership. The activities associated with the homeowner beautification grant and rehabilitation loan programs administered by NHSIE are an integral part of this component. CURRENT ISSUE: For the FY 2008-2009, the Agency has allocated to NHSIE activities, a budget of $2.1 million taken from its Low and Moderate Income Housing Funds and HOME Funds for the implementation of the Programs. The current breakdown offunds is as follows: ACTIVITY SOURCE AMOUNT Program Administration - Single-Family Beautification Grant/Loan Program Low/Mod $320,000 Program Administration - Mobile Home Grant Program HOME $40,000 Pre-Development Costs' Low/Mod $5,000 Mobile Home Grant Program HOME $160,000 Single-Family Beautification Grant/Loan Program Low/Mod $1,575,000 TOTAL $2,100,000 P\Agenda:;\Comm Dev CommissionlCDC 2009\05-04-09 NHSIE Program Activities SR doc COMMISSION MEETING AGENDA Meeting Date: 05/04/2009 Agenda Item Nnmber: -1.3 S? Economic Development Agency Staff Report NHSJE Quarterly Program Activities Update Page 2 *Includes costs such as cancelled title policies, architecture and engineering, lead-based paint testing and inspections, as necessary. For the quarter ending March 31, 2009, NHSIE completed 10 beautification grants, 0 beautification loans and 2 mobile home grants. This is equal to 12 separate transactions for the quarter. From July 1,2008, through March 31, 2009, NHSIE has completed 48 beautification grants, I beautification loan and II mobile home grants for a total of 60 separate transactions, current fiscal year-to-date. From an expenditure standpoint, NHSIE expended a total of $156,622 for the first calendar quarter of 2009 and $792,482 fiscal year-to-date in direct Program delivery activities. The table below details the number of completed activities, levels of expenditures and average cost per transaction for the quarter and year-to-date by Pro gram type. Program Completed Activities Expenditure Avg. Transaction Cost Mar 31 Otr FY-to-D Mar 31 Otr FY-to-D Mar310tr FY-to-D Beautification 10 48 $149,442 $691,997 $14,944 $14,417 Grant Beautification Loan 0 I $0 $50,000 $0 $50,000 Mobile Home Grant 2 II $7,180 $50,485 $3,590 $4,590 TOTAL 12 60 $156,622 $792,482 $13,052 $13,208 Please see Attachments I and 2 for the locations of the program activities and approved funding indicated by Ward. The two maps identify this information on a quarterly basis through March 31, 2009, and a fiscal year- to-date through March 3 I , 2009. Proposed Activities The Agency is presently working with NHSIE to create a goal oriented program and identify areas of the City within specific Wards where the Agency may look to target these funds and use them in conjunction with other foreclosure mitigation activities such as the Neighborhood Stabilization Program ("NSP"). In July of 2009, NHSIE will be entering into the final year of a three-year contract. In anticipation of this, and as a way to start shaping general policy goals and objectives for the next funding cycle, Agency Staff is in the process of amending the NHSIE Program contract. The goal of such an amendment is to begin the process of improving the ease of contract management and stressing more performance based measures. It is anticipated, the amended agreement would be presented to the Commission for consideration within the next 6-8 weeks. Under consideration for general Program modification includes: o Separating the existing Single-Family Beautification Loan/Grant and Mobile Home Grant Program and HOME Agreement contracts into four (4) individual agreements to include the Beautification Grant Program, Rehabilitation Loan Program, Mobile Home Grant Program and Homebuyer Education Program. o Potentially targeting the Program to specific areas of the City to better maximize the effectiveness of Program funds. Should the Agency request this targeting in specific areas, Agency Staff would provide them to NHSIE for implementation. P\AgendaslComm Dev Comrnission\CDC 2009\05-04-09 NIlSIE Program Activities SR,doc COMMISSION MEETING AGENDA Meeting Date: 05/04/2009 Agenda Item Number: P-3 f Economic Development Agency Staff Report NHSIE Quarterly Program Activities Update Page 3 o Implementing a Program Review Committee, consisting of NHSlE and Agency Staff, to review and mutually approve each grant or loan application prior to award and execution. o Adding a ten (I O)-year Maintenance Covenant to the existing Eligibility Requirements. o Including certain language within the new loan and grant agreement prohibiting the joint and simultaneous use of grant and loan funds. o Requiring that all applicable maintenance and affordability covenants and other grant documentation be reviewed and signed by Agency Staff and recorded by the San Bernardino County Recorder's Office prior to work being started. o Requiring that NHSIE contact Agency Staff to complete project inspection (within 10 business days after request) prior to payment of any invoices. No payments will be made until final inspection is approved and signed off by Agency Staff. o Identifying specific numerical targets for the number of transactions and the administrative costs associated with each transaction. o Potentially modify dollar amount and allocation formula. ENVIRONMENTAL IMP ACT: None. FISCAL IMPACT: There is no General Fund impact to the City. The contract between the Agency and NHSIE has been funded for FY 2008-2009, and is derived from the Agency Housing Set Aside Funds and HOME Funds. RECOMMENDATION: That the Community Development Commission adopt the Motion. JA~tfn-) Emil A. Marzullo, Interim Executive Director P\AgendaslComm Dev Commis,ionlCDC 2009\05-04-09 NHSIE Program Activities SR doc COMMISSION MEETING AGENDA Meeting Date: 05/04/2009 Agenda Item Number: (l3 , Attachment 1 Activities for FY 2008-2009 through March 31,2009 .,.1., ,.... ..... ,.., ~... _ '-. _ . ,', No Amount No Amount No Amount No Amount 1 4 $60,000,00 1 $5,000.00 5 $65,000.00 2 6 $88,610.00 6 $88,610.00 3 6 $79,942.50 2 $5.830.00 8 $85 772.50 4 6 $86,435.00 2 $9,500,00 $50,000.00 9 $145,935.00 5 6 $87,666.00 6 $87,666.00 6 14 $200,493.00 5 19 $225 708.00 7 6 $88850.00 1 7 $93790.00 ""'-., " o . , ". .~. f'~,l;,-", ..j~........,.. ~%..o-... ""'o.-......~_ 21 i < < ~ _.....E..~!-_O<~.~~. . ~~?.!.!I.".-',...Il~~--iW \ollO "'"< \~ ,'. \~ ~ff _______\_ ~ R",lH> AVE ~-'~._,- i~ _~':'~V!,.___ 21. o o , .' ",1;// ~/ "0,, 0.' #~/ - --;~~~/ SAN "oRNARO"O ~ - -'AVE-- ~ , S"NBERNAROINOAV" L , VAllEY BlVP , o < o < < _~~..Il~r;~F,"~:-:.: . / ~W:'E~:""IO. I I , i " , ~ " ! ~ o' ~ ~~/ ~ "''I-'}.?;~t,>. / "'-~-"-"-~- Legend !,,!!!~~.~o_ u) . \ * Beautification Grant (48 / N~~'/"'..J .~ \~ ~ \ \. * Loan (1) 'r-~- :l -:-....~,... ~.;., (:"- ... * Mobile Home Grant(11) ~-- . Attachment 2 Activities for Quarter through March 31, 2009 - - ~ , :~ /', ....~ 'T,~ "::";4. ~_.'.... _ '. , Amount $31,030.00 $14,964.00 $14,980.00 $50,888.00 $44,760.00 ". ". , , /''''. 1 , "~, c" ..~ <!' "0... c. ,.,.~" -'-f'--"''''~''' . < " ~ I "j i (!) _L'~.'" "" _.__._-'~ .....UN...I \, , ...~~~c .v. /' ...,~" <>""/"/ cp:t/ -.'!."?:. .' --'J I ! l , ""0 ",::,( "~ ;1.::. ,~ /".......~- ., FOOTHl~lVll '"JTii. .... nH s" l- RL".lTOAVa ----~-~-1.._ _ ~~r- 1= ~~ i Ii , ,,~/ ~ ~~J' ~ Q~/ 210 ~_..!~~-- SANGERN"ROOND --~- ~ ~ , c""~/~ --t-..,.<:>~ i .....:".&....:i. ~ " , "* ' " ,.,,- . _':.~_~!'_~!'_~_~f'p.!!'..? ~!. L , , o . o --,-,!!,_ON~":,~V,:: , , , I .J. ~~o ____ , tj:..'---~- \- l , \1 ./"--:;;7" , / J ), I' Ii .~ \". . Reo"i.':Niis-a~;;o' "~,OYE~ AVO JUf'UPAAVE ( I ~ .J !!."-~.I!?_N.~ , 1 o ~ Legend \ I !.' ~~:~ ~ ...'!-.... e"',"<;,:-O, / ~'--\\.'~J!~ . , , . CI \ \ , , * Beautification Grant (10) Mobile Home Grant (2) :l ~10'-.... Oi;;-