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Home My WebLink AboutCDC/2011-11 (NOTE: COMPANION RESOLUTIONS 2011-47 CDC/2011-8, CDC/2011-9, CDC/2011-10) 1 2 3 4 RESOLUTION NO. CDC/2011-11 6 7 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING A CERTAIN HOUSING CAPITALIZATION FUNDING AGREEMENT (SUB-RECIPIENT AGREEMENT) BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") AND AFFORDABLE HOUSING SOLUTIONS, INC., A CALIFORNIA NON-PROFIT CORPORATION ("AHS"), INC., RELATING TO THE FINANCING OF CERT AIN HOUSING PROGRAMS AND ACTIVITIES 5 8 WHEREAS, the City of San Bernardino, California (the "City") is a municipal corporation 9 and charter city, duly organized and existing pursuant to the provisions of the constitution of the 10 State of California; and 11 WHEREAS, the Agency was established by appropriate action of the City, for the purposes 12 of exercising redevelopment powers within the City boundaries through the adoption and approval 13 of various redevelopment project areas that are currently in existence within the City (the "Project 14 Areas") as further described in the applicable redevelopment plans accompanying such Project 15 Areas (the "Redevelopment Plans"); and 16 WHEREAS, the Community Development Commission of the City of San Bernardino (the 17 "Commission") acts as the governing body of the Agency for all official actions taken on behalf of 18 the Agency; and 19 WHEREAS, AHS was formed pursuant to the non-profit corporation laws of the State of 20 California and was fonned and exists for the purposes of assisting in the implementation of various 21 housing initiatives within the City and to undertake such other activities, programs and projects of 22 the Agency and the City as are then deemed advisable by AHS through its board of directors as the 23 same relate to housing activities; and 24 WHEREAS, pursuant to the Community Redevelopment Law (Health & Safety Code 25 Section 33000, et seq.) (the "CRL" or the "Authorizing Provisions"), the Agency may enter into 26 project funding agreements and financing agreements with other public agencies, private entities 27 and non-profit corporations to carry out its affordable housing purposes; and 28 I P:'Agendas'.,Comm De\' Commission\2011 CDC Items"Special Joint Workshop\03-03-11 Agency & AHS - Housing Capitalization Funding Agreement CDC Reso.doc CIJC/20) 1 -11 1 WHEREAS, the Agency receives certain funds annually attributable to the Project Areas and 2 from the Inland Valley Development Agency ("IVDA") which are designated as low and moderate 3 income housing funds pursuant to the CRL which are required to be used solely for the purposes as 4 set forth in the CRL (those low and moderate income housing funds as received from the Project 5 Areas and the IVDA are collectedly referred to herein as the "Low Mod Funds"); and 6 WHEREAS, AHS has requested that the Agency act at this time to assist AHS with the 7 financing of certain housing programs and the implementation of other programs and activities 8 located within the Project Areas and within the City, together with other public infrastructure that is 9 necessary to support the long-term development and redevelopment of housing units located within 10 portions of the City located within the Project Areas, including those public improvements, public 11 infrastructure and other housing developments and activities, programs and projects all as set forth 12 in the current year 2010-2011 Budget of the Agency as indicated on Exhibit "A" (the "Housing 13 Programs, Projects and Activities") of the proposed Housing Capitalization Funding Agreement 14 (Sub-Recipient Agreement) (the "Sub-Recipient Agreement") plus those other housing activities 15 and programs as set forth on the Implementation Plan of the Agency as indicated on Exhibit "B" of 16 the Sub-Recipient Agreement (the "Housing Compliance Plan of the Agency's Implementation 17 Plan") (collectively, the "Housing Related Programs"); and 18 WHEREAS, in addition to the Housing Related Programs, AHS, in furtherance of the 19 redevelopment of various areas of the City and in particular with the Project Areas, requires the 20 Agency to commit to certain levels of additional financing amounts to AHS for the fulfillment of the 21 contractual commitments and other financial obligations as set forth on Exhibit "D" of the Sub- 22 Recipient Agreement (the "Other AHS Contractual Obligations"); and 23 WHEREAS, the Agency has detennined to finance the Housing Related Programs and the 24 Other AHS Contractual Obligations by the incurring of the indebtedness as required by the Sub- 25 Recipient Agreement attributable to the Low Mod Funds, including, but not limited, the issuance of 26 one or more direct loan obligations, other privately placed loans with commercial lenders and 27 private parties, the issuance of municipal bonds and the pledge of the tax increment revenues in the 28 form of the Low Mod Funds of the Agency to AHS as set forth in the Sub-Recipient Agreement 2 P:'Agendas.,.comm De\' Commission"lOII CDC Items\Spccial Joint Workshop'03-03-11 Agency & AHS. Housing Capitalization Funding Agreement CDC Reso.doc r.DC/201l-11 1 during the period of time that the Agency is entitled to receive tax increment revenues in the form of 2 Low Mod Funds pursuant to the Redevelopment Plans for the Project Areas and from the IVDA as 3 the financial obligations of the Agency as shall be applicable for the period of time that such 4 financial obligations of the Agency to AHS are payable hereunder; and 5 WHEREAS, in order to secure the financial obligations of the Agency to AHS as provided 6 in the Sub-Recipient Agreement, the Agency desires to transfer to AHS the responsibility for the 7 management and maintenance of the Agency real property assets as described on Exhibit "E" of the 8 Sub-Recipient Agreement (the "Agency Real Property Assets"), which shall be operated and 9 managed by AHS with the tax increment revenues in the form of the Low Mod Funds to be 10 provided by the Agency to AHS as further provided in the Sub-Recipient Agreement; and 11 WHEREAS, the Agency and AHS seek to provide through the Sub-Recipient Agreement 12 that in addition to the obligations as incurred pursuant to the Sub-Recipient Agreement, the Agency 13 shall pledge to AHS additional Low Mod Funds as necessary to support the ongoing contractual and 14 budgeted obligations and commitments of AHS as shall be incurred in furtherance of the 15 implementation of the Housing Related Programs and the Other AHS Contractual Obligations and 16 to fund the construction and/or financing of the Housing Related Programs and the Other AHS 17 Contractual Obligations; and 18 WHEREAS, consistent with the AHS obligations incurred pursuant to the Sub-Recipient 19 Agreement and the commitment of the Agency to fulfill its financial commitments to AHS, during 20 the Term of the Sub-Recipient Agreement, the Agency tax increment revenues in the fonn of the 21 Low Mod Funds available pursuant to the Redevelopment Plans for the Project Areas and from the 22 IVDA shall become revenues attributed to and payable to AHS, and the Agency therein would 23 pledge the tax increment revenues in the fonn of the Low Mod Fund for the payment and repayment 24 of the obligations to pay for and for the administration and undertaking of the Housing Related 25 Programs, the Other AHS Contractual Obligations and/or the other obligations as incurred pursuant 26 to the Sub-Recipient Agreement; and 27 WHEREAS, the Agency has obtained certain housing funds from the City that were 28 obtained through federal governmental sources for which the Agency and the City entered into one 3 P:\Agendas'.,Comm Dev Commission\2011 COC ltems'Special Joint Workshop\Q3-03-ll Agency & AHS - Housing Capitalization Funding Agreement CDC Reso.doc CDC/2011-11 1 or more sub-recipient agreements for the manner and use of such City funds by the Agency, and the 2 parties intend that the Sub-Recipient Agreement shall constitute a similar sub-recipient agreement to 3 likewise transfer all obligations and funds of the Agency received and to be received pursuant to the 4 sub-recipient agreements to AHS pursuant to the Sub-Recipient Agreement; and 5 WHEREAS, the Agency has determined that it is in the best interests of the Agency to enter 6 into the Sub-Recipient Agreement to finance said Housing Related Programs and the other 7 obligations as incurred pursuant to the Sub-Recipient Agreement, and thus desire to provide for the 8 terms and conditions of its cooperation in such matters as therein provided. 9 WHEREAS, the Commission has duly considered the terms of such transactions and 10 obligations as contemplated herein and has determined that it is in the best interests of the City and 11 Agency to enter into the Sub-Recipient Agreement t, and thus desire to approve and authorize said 12 Sub-Recipient Agreement. 13 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE 14 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER AS 15 FOLLOWS: 16 Section 1. Approval of Assignment of other Sub-Recipient Agreements. The Commission 17 hereby approves the transfer and assignment of all additional sub-recipient agreements that are 18 currently in full force and effect by and between the Agency and the City and all federally funded 19 governmental loan programs, governmental funds, availability to acquire housing units upon a 20 federal government foreclosure of an insured mortgage loan including other foreclosure properties 21 and use of funds such as the Neighborhood Stabilization Program ("NSP") and the HOME 22 Investment Partnership Program ("HOME Program") in their various series of fundings and the 23 execution of any and all additional documents as may be necessary, without any further 24 amendments or modifications to the Sub-Recipient Agreement, to implement such transfer and 25 assignment. 26 Section 2. Approval of Pledge of Low and Moderate Income Housing Funds. The 27 Commission hereby approves the Agency's pledge to AHS of all tax increment revenues in the form 28 of the Low Mod Funds available to the Agency from the Redevelopment Plans for the Project Areas 4 P:\Agendas',Comm Dev Commission'20ll CDC Items.spccial Joint Workshop'03-03-11 Agency & AHS - Housing Capitalization Funding Agreement CDC Reso.doc CDC/2011-11 1 and from the IVDA during the Term of the Sub-Recipient Agreement, not to exceed $375,000,000 2 in the aggregate principal amount plus interest payable thereon, for the payments as required for 3 AHS to fully perform each and every financial and contractual obligation as set forth in the Sub- 4 Recipient Agreement and as required by the IVDA. 5 Section 3. Approval of Responsibility for Compliance. The Commission hereby approves 6 the Agency maintaining responsibility for compliance with all requirements imposed by the 7 Redevelopment Plans and for the timely payment of funds and the reporting of such uses pursuant to 8 the CRL. 9 Section 4. Approval of Terms and Provisions. The Commission hereby approves the terms 10 and provIsIOns of the Sub-Recipient Agreement and the totality of the Agency's obligations 11 thereunder. 12 Section 5. Approval of Final Form of Sub-Recipient Agreement. The Commission hereby 13 approves the form of the Sub-Recipient Agreement in the form on file with the Secretary, together 14 with any changes therein or additions thereto as may be approved by the Chair or the Executive 15 Director as such changes may be approved by Agency Counsel and the City Attorney. The 16 Commission hereby further authorizes and directs the conversion of the form of the Sub-Recipient 17 Agreement into the final form thereof, together with such changes or modifications as deemed 18 necessary or desirable by the Chair or the Executive Director upon the recommendation of Agency 19 Counsel. The Chair or the Executive Director or such other authorized officer of the Commission is 20 hereby authorized and directed to execute and deliver, and the Secretary or Assistant Secretary is 21 hereby authorized and directed to attest to, the final form ofthe Sub-Recipient Agreement. 22 Section 6. Official Action. The Chair, Vice-Chair, Secretary, Assistant. Secretary, 23 Executive Director, Agency Counsel and any and all other members and officers of the Agency are 24 hereby authorized and directed, for and in the name and on behalf of the Agency, to do any and all 25 things and take any and all actions, including execution and delivery of any and all assignments, 26 certificates, requisitions, agreements, notices, consents, instruments of conveyance, warrants and 27 other documents, which they, or any of them, may deem necessary or advisable in order to fulfill the 28 obligations of the Agency under the Sub-Recipient Agreement. Whenever in this Resolution any 5 P:\Agendas\Comm Dev Commission'201l CDC Items'Special Joint Workshopcn-03-ll Agency & AHS - Housing Capitalization Funding Agreement CDC Reso.doc CDC/2011-11 1 officer of the Agency is authorized to execute or countersign any document or take any action, such 2 execution, countersigning or action may be taken on behalf of such officer by any person designated 3 by such officer to act on his or her behalf in the case such officer shall be absent or unavailable. 4 Section 7. Effective Date. This Resolution shall take effect from and after its date of 5 adoption by this Commission. 6 /II 7 /II 8 /II 9 /II 10 /II 11 /II 12 /II 13 /II 14 /II 15 1/1 16 /II 17 /II 18 1/1 19 1/1 20 1/1 21 /II 22 /II 23 1/1 24 1/1 25 /II 26 /II 27 /II 28 6 P:'Agendas\Comm Dc\' Commission'.20ll CDC Items Special Joint Workshop\03-03.11 Agency & AHS - Housing Capitalization Funding Agreement CDC Reso.doc CDC/2011-11 1 2 3 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING A CERTAIN HOUSING CAPIT ALIZA TION FUNDING AGREEMENT (SUB-RECIPIENT AGREEMENT) BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") AND AFFORDABLE HOUSING SOLUTIONS, INC., A CALIFORNIA NON-PROFIT CORPORATION ("AHS"), INC., RELATING TO THE FINANCING OF CERT AIN HOUSING PROGRAMS AND ACTIVITIES 4 5 6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community 7 Development Commission of the City of San Bernardino at a Joint Special meeting 8 thereof, held on the 3rd 9 Commission Members: 10 MARQUEZ 11 VACANT 12 BRINKER 13 SHORETT 14 KELLEY 15 JOHNSON 16 MC CAMMACK 17 18 day of March , 2011, by the following vote to wit: Absent Abstain Nays Ayes X --2L -----X- X X X secreta~) 19 /) The foregoing Resolution is hereby approved this '-'")' /l-I day of March , 2011. 20 21 22 23 .~1o:n~~ I Community Development Commission I of the City of San Bernardino 24 Approved as to Forn1: 25 pi 26 By: \~ Agency un 27 28 7 P:',Agendas',Comm De\' Commission",.2011 CDC Items\'special Joint Workshop',03-03-11 Agency & AHS - Housing Capitalization Funding Agreement CDC Reso.doc CDC/20 11-11 HOUSING CAPITALIZATION FUNDING AGREEMENT (SUB-RECIPIENT AGREEMENT) by and between REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO and AFFORDABLE HOUSING SOLUTIONS, INC., A CALIFORNIA NON-PROFIT CORPORATION Relating to the $375,000,000 PRINCIPAL AMOUNT REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO LOW AND MODERATE INCOME HOUSING FUND PROJECTS P:\Agendas\Comm Dcv Commission\2011 CDC ltcms\Spccial Joint Workshop\03-03-11 Agency & AHS - Housing Capitalization Funding Agreemcnt.docx CDC/20 11-11 HOUSING CAPITALIZATION FUNDING AGREEMENT (SUB-RECIPIENT AGREEMENT) THIS HOUSING CAPITALIZATION FUNDING AGREEMENT (SUB-RECIPIENT AGREEMENT) is made and entered into as of March 3, 2011 (this "Funding Agreement"), by and between the Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic existing under the laws of the State of California (the "Agency") and Affordable Housing Solutions, Inc., a California non-profit corporation ("AHS"), as follows. WIT N E SSE T H: WHEREAS, the Agency was established by appropriate action of the City of San Bernardino (the "City"), for the purposes of exercising redevelopment powers within the City boundaries through the adoption and approval of various redevelopment project areas that are currently in existence within the City (the "Project Areas") as further described in the applicable redevelopment plans accompanying such Project Areas (the "Redevelopment Plans"); and WHEREAS, the Community Development Commission of the City of San Bernardino (the "Commission") acts as the governing body of the Agency for all official actions taken on behalf of the Agency; and WHEREAS, AHS was formed pursuant to the non-profit corporation laws of the State of California and was formed and exists for the purposes of assisting in the implementation of various housing initiatives within the City and to undertake such other activities, programs and projects of the Agency and the City as are then deemed advisable by AHS through its board of directors as the same relate to housing activities; and WHEREAS, pursuant to the Community Redevelopment Law (Health & Safety Code Section 33000, et seq.) (the "CRL" or the "Authorizing Provisions"), the Agency may enter into project funding agreements and financing agreements with other public agencies, private entities and non- profit corporations to carry out its affordable housing purposes; and WHEREAS, the Agency receives certain funds annually attributable to the Project Areas and from the Inland Valley Development Agency ("IVDA") which are designated as low and moderate income housing funds pursuant to the CRL which are required to be used solely for the purposes as set forth in the CRL (those low and moderate income housing funds as received from the Project Areas and the IVDA are collectedly referred to herein as the "Low Mod Funds"); and WHEREAS, AHS has requested that the Agency act at this time to assist AHS with the financing of certain housing programs and the implementation of other programs and activities located within the Project Areas and within the City, together with other public infrastructure that is necessary to support the long-term development and redevelopment of housing units located within portions of the City located within the Project Areas, including those public improvements, public infrastructure and other housing developments and activities, programs and projects all as set forth in the current year 2010-2011 Budget of the Agency as indicated on Exhibit "A" (the "Housing Programs, Projects and Activities") as attached hereto and incorporated herein by reference plus those other housing activities 1 P:\Agendas\Comm Dev Cornmission\2011 CDC Items\Special Joint Workshop\03-03-11 Agency & AHS - Housing Capitalization Funding Agreemcnt.docx CDC/2011-11 and programs as set forth on the Implementation Plan of the Agency as indicated on Exhibit "B" (the "Housing Compliance Plan of the Agency's Implementation Plan") as attached hereto and incorporated herein by reference (collectively, the "Housing Related Programs"); and WHEREAS, in addition to the Housing Related Programs, AHS, in furtherance of the redevelopment of various areas of the City and in particular with the Project Areas, requires the Agency to commit to certain levels of additional financing amounts to AHS for the fulfillment of the contractual commitments and other financial obligations as set forth on Exhibit "D" (the "Additional Ongoing Agency Contractual Obligations to be undertaken by AHS") as attached hereto and incorporated herein by reference; and WHEREAS, the Agency has determined to finance the Housing Related Programs and the Other AHS Contractual Obligations by the incurring of the indebtedness as required by this Funding Agreement attributable to the Low Mod Funds, including, but not limited, the issuance of one or more direct loan obligations, other privately placed loans with commercial lenders and private parties, the issuance of municipal bonds and the pledge of the tax increment revenues in the form of the Low Mod Funds of the Agency to AHS as set forth in this Funding Agreement during the period of time that the Agency is entitled to receive tax increment revenues in the form of Low Mod Funds pursuant to the Redevelopment Plans for the Project Areas and from the IVDA as the financial obligations of the Agency as shall be applicable for the period of time that such financial obligations of the Agency to AHS are payable hereunder; and WHEREAS, in order to secure the financial obligations of the Agency to AHS as provided in this Funding Agreement, the Agency desires to transfer to AHS the responsibility for the management and maintenance of the Agency real property assets as described on Exhibit "E" (the "Agency Real Property Assets") as attached hereto and incorporated herein by reference which shall be operated and managed by AHS with the tax increment revenues in the form of the Low Mod Funds to be provided by the Agency to AHS as further provided herein; and WHEREAS, the Agency and AHS seek to provide through this Funding Agreement that in addition to the obligations as incurred pursuant to this Funding Agreement, the Agency shall pledge to AHS additional Low Mod Funds as necessary to support the ongoing contractual and budgeted obligations and commitments of AHS as shall be incurred in furtherance of the implementation of the Housing Related Programs and the Other AHS Contractual Obligations and to fund the construction and/or financing of the Housing Related Programs and the Other AHS Contractual Obligations as further identified on Exhibit "c" (the "Housing Related Projects/Programs Capital Needs Analysis") as attached hereto and incorporated herein by reference; and WHEREAS, consistent with the AHS obligations incurred pursuant to this Funding Agreement and the commitment of the Agency to fulfill its financial commitments to AHS, during the Term (as defined in Section 1.03) of this Funding Agreement, the Agency tax increment revenues in the form of the Low Mod Funds available pursuant to the Redevelopment Plans for the Project Areas and from the IVDA shall become revenues attributed to and payable to AHS, and the Agency herein pledges the tax increment revenues in the form of the Low Mod Fund for the payment and repayment of the obligations to pay for and for the administration and undertaking of the Housing Related Programs, the Other AHS Contractual Obligations and/or the other obligations as incurred pursuant to this Funding Agreement; and 2 P:\Agendas\Comm Dev Commission\20J J CDC ltems\Special Joint Workshop'03-03.11 Agency & AHS - Housing Capitalization Funding Agreement.docx CDC/2011-11 WHEREAS, the Agency has obtained certain housing funds from the City that were obtained through federal governmental sources for which the Agency and the City entered into one or more Sub-Recipient Agreements for the manner and use of such City funds by the Agency, and the parties intend that this Funding Agreement shall similarly constitute a sub-recipient agreement to likewise transfer all obligations and funds of the Agency received and to be received pursuant to the Sub- Recipient Agreements to AHS pursuant to this Funding Agreement; and WHEREAS, the Agency and AHS have determined that it is in the best interests of the Agency and AHS to enter into this Funding Agreement to finance said Housing Related Programs and the other obligations as incurred pursuant to this Funding Agreement, and thus desire to provide for the terms and conditions of their cooperation in such matters as herein provided. NOW THEREFORE, the parties to this Funding Agreement agree, as follows. ARTICLE I DEFINITIONS; TERM OF FUNDING AGREEMENT Section 1.01. Recitals. The Recitals set out above are true and correct. Section 1.02. Definitions. Unless the context otherwise requires, capitalized terms used herein and not defined herein shall have the meanings as generally ascribed to such terms. Section 1.03. Assignment. This Funding Agreement shall be subject to assignment at the written direction of the Commission to AHS for any assignment of this Funding Agreement that is authorized by the Commission to be made to any duly established joint powers authority as so directed by the Commission in writing to AHS pursuant to written notice delivered by the Commission to AHS. Upon receipt of any such written notice of assignment from the Commission specifying the assignment of this Funding Agreement to such joint powers authority, AHS shall immediately take all necessary actions to timely accomplish the assignment to the joint powers authority as may then be required in accordance with such direction of the Commission. Section 1.04. Bylaws. The Commission has authorized the execution of this Funding Agreement with AHS based upon the corporate bylaws of AHS (the "Bylaws") as are in existence as of the date of this Funding Agreement which specify the manner and term of the appointment of directors to the corporate board of AHS and which, in additional to other matters, requires AHS to comply with certain requirements that are applicable to governmental entities within the State. No amendment, change or other modification shall be made to the Bylaws without the prior written approval of the Commission which approval may be granted or withheld at the sole and absolute discretion of the Commission. Section 1.05. Maintenance of Tax-Exempt Status. AHS covenants and agrees to maintain the current tax status of AHS for federal income tax purposes as an exempt organization organized as a California non-profit corporation and pursuant to Internal Revenue Code Section 501 (c )(3), and AHS shall cause to be prepared and timely transmitted all necessary filings with State of California and the Internal Revenue Service to maintain such tax-exempt status as a California non-profit corporation. AHS further covenants and agrees not to enter into any transaction or to undertake any other type of activity that would cause AHS to become a taxable entity, and all revenues, including but not limited 3 P:'Agendas\Comm Dev Commission\201 I CDC Jtems\Special Joint Workshop\03-03-11 Agency & AHS - Housing Capitalization Funding Agreement.docx CDC/2011-11 to the tax increment revenues to be received by AHS pursuant to this Funding Agreement, shall be used strictly in conformance with this Funding Agreement and in a manner so as not to cause any income or funds received by AHS to be determined to be "unrelated business income" that would in any manner jeopardize the tax-exempt status of AHS. Section 1.06. Term. This Funding Agreement shall remain in full force and effect so long as the obligations incurred by the Agency to AHS remain outstanding and unpaid, but in no event later than the last date that the Agency is entitled to receive the tax increment revenues in the form of the Low Mod Funds pursuant to the Redevelopment Plans for the Project Areas and from the IVDA for the repayment of indebtedness and other financial and contractual obligations. Section 1.07. Reporting to Commission. AHS shall provide written reports on a quarterly basis to the Commission on behalf of the Agency setting forth for the applicable reporting period all expenditures of funds and all purchases, rehabilitation and sales of housing units and the execution by AHS of any and all other agreements entered into by AHS in furtherance of this Funding Agreement and the use of the Low and Mod Fund. An annual budget shall be prepared by AHS and submitted to the Commission for review and comment in the manner and by the dates as provided in Section 2.03(c) hereof. AHS shall additionally prepare and submit all reports as may be required by the State pursuant to the CRL or pursuant to other applicable State laws with copies of all such reports submitted to the Commission upon filing of such reports. Section 1.08. Cooperation with City Housing Authority. AHS recognizes that the San Bernardino City Housing Authority (the "City Housing Authority" has been formed and is presently in existence with the City of San Bernardino. To the extent feasible, AHS shall coordinate its housing related activities in a manner consistent with the goals and objectives of the City Housing Authority and shall endeavor to undertake joint housing projects or oversee any and all housing activities deemed appropriate by the City Housing Authority to the extent such may be financially feasible under the circumstances. Section 1.09. Assignment of other Sub-Recipient Agreements. By the execution and delivery of this Funding Agreement, the parties intend to transfer and assign to AHS all additional sub- recipient agreements that may currently be in full force and effect by and between the Agency and the City for any and all federally funded governmental loan programs, governmental funds, availability to acquire housing units upon a federal government foreclosure of an insured mortgage loan including other foreclosure properties and use of funds such as the Neighborhood Stabilization Program ("NSP") and the HOME Investment Partnership Program ("HOME Program") in their various series of fundings. The parties agree to execute all such additional documents as may be necessary without any further amendments or modifications to this Funding Agreement to implement and carry out the full intent of this Section 1.09. ARTICLE II PAYMENT OF LOW MOD FUND OF AGENCY TO AHS Section 2.01. Transfer of Powers. (a) In order to carry out the Housing Related Projects and the Other AHS Contractual Obligations, AHS shall assume all performance obligations with respect thereof and the Agency 4 P:\Agendas\Comm De\' Commission\.2011 CDC Items\Special Joint Workshop\03-m-ll Agency & AHS - Housing Capitalization Funding Agreement.docx CDC/2011-11 hereby pledges to AHS all tax increment revenues in the form of the Low Mod Funds available to the Agency from the Redevelopment Plans for the Project Areas and from the IVDA during the Term of this Funding Agreement for the payments as required for AHS to fully perform each and every financial and contractual obligation as set forth on Exhibits "A", "B", "C", "D" and "E" as to the Redevelopment Plans for the Project Areas and as required by the IVDA. The Agency shall be responsible for compliance with all requirements imposed by the Redevelopment Plans and for the timely payment of funds and the reporting of such uses pursuant to the CRL, and AHS shall be responsible for all compliance with respect to the requirements as imposed pursuant to California law for the use of the Low Mod Funds with regard to the implementation and undertaking of the Housing Related Programs and the Other AHS Contractual Obligations. (b) AHS shall use and apply the tax increment revenues as pledged pursuant to this Funding Agreement to undertake, manage, administer and implement all aspects of the Redevelopment Related Improvements and the Other AHS Contractual Obligations, specifically including, but not limited to: 1. . the design, construction and implementation of the Housing Related Programs as set forth in the 2010-2011 Budget of the Agency as indicated on Exhibit "A"; 2. undertaking of the Housing Compliance Plan of the Agency's Implementation Plan as set forth on Exhibit "B"; 3. undertaking the housing related projects and programs identified in the Capital Needs Analysis as set forth on Exhibit "C", 4. undertaking of the Other AHS Contractual Obligations as set forth on Exhibit "D"; 5. managing and maintaining the Agency Real Property Housing Assets as set forth on Exhibit "E". (c) The Agency Real Property Housing Assets shall not be transferred in fee by the Agency to AHS except upon the subsequent approval of the Commission, the Council and AHS as to any such subsequent transfer of fee title. AHS shall be responsible for the management and property maintenance of the Agency Real Property Housing Assets for such period of time that the Agency Real Property Housing Assets continue to be owned in fee title by the Agency. The obligation of the Agency to transfer the management and property maintenance for the Agency Real Property Housing Assets shall be a binding and enforceable contractual obligation upon the Agency from and after the date of this Funding Agreement, and any failure of the Agency to remit the necessary tax increment revenues to provide for the payment of such management and property maintenance expenses for the Agency Real Property Housing Assets as required herein shall be an Event of Default pursuant to Section 3.01 hereof. Section :.02. Irrevocable Pledge of Low Mod Funds. Pursuant to and in consideration of the assumption of the obligations by AHS as set forth in Section 2.01 above, commencing as of the date of this Funding Agreement during the 2010-2011 fiscal year and for each fiscal year thereafter during the Term, those tax increment revenues derived by the Agency from the Redevelopment Plans for the Project Areas and from the IVDA as Low Mod Funds are hereby irrevocably pledged to AHS pursuant to this Funding Agreement on a basis subordinate to all presently authorized and issued, and 5 P:\AgendasIComm De\' Commission\2011 rDC ltems'Special Joint Workshop\03-03-1 ] Agency & AHS . Housing Capitalization Funding Agreement.docx CDC/2011-11 future authorized and issued debt obligations of the Agency that are sold through municipal underwriting means or debt obligations with third party commercial lenders, including, but not limited to those amounts that are in excess of the tax increment revenues budgeted to be expended by the Agency for the current 2010-2011 fiscal year of the Agency and for each fiscal year thereafter during the Term. Such pledge of the Low Mod Funds of the Agency and the IVDA to AHS shall be irrevocable during the Term of this Funding Agreement. The maximum dollar amount of the tax increment revenues pledged by the Agency to AHS pursuant to this Funding Agreement for the use and pledge of Low Mod Funds for debt and other contractual obligations that are intended to be issued or incurred by AHS on and after the date of this Funding Agreement shall not exceed $375,000,000 in the aggregate principal amount plus interest payable thereon. Section 2.03. Use of Tax Increment Revenues. (a) Throughout the Term of this Funding Agreement, AHS hereby agrees that the Low Mod Funds as pledged by the Agency pursuant to Section 2.02 above shall be applied for the payment and/or repayment of the obligations incurred by AHS pursuant to Section 2.01 above. (b) AHS shall take all steps necessary to utilize the Low Mod Funds to pay principal and interest due on all debt and other contractual obligations of AHS as specified in this Funding Agreement. Such payments shall be absolute obligations of AHS and shall not be subject to any deduction or offset of any kind whatsoever. (c) AHS shall submit an annual proposed budget for each fiscal year to the Commission and the Mayor and Common Council of the City of San Bernardino (the "Council") for review and concurrence at least sixty (60) calendar days prior to any final approval of such annual budget by AHS. Any budget as thereafter approved by AHS shall be modified to include the comments as approved by the Commission and the Council within such budget and as to such items that cannot be agreed upon among the Commission, the Council and AHS, those particular items shall be deleted from the budget as may thereafter be approved by AHS. Section 2.04. Use of Excess Low Mod Funds. During the Term of this Funding Agreement and to the extent that there are excess tax increment revenues generated and received by AHS as Low Mod Funds ("'Excess Tax Increment Revenues") after payment and/or repayment of the various obligations incurred by AHS pursuant to Section 2.01 above, such Excess Tax Increment Revenues shall be used by AHS for other qualifying housing projects and housing related programs and activities within the Project Areas and the City. In addition to the rights of the Commission and the Council to approve the annual budgets as specified in Section 2.03(c) above, the Commission and the Council shall also have the right to approve the sale of any real property that may hereafter be transferred to AHS pursuant to this Funding Agreement, including the price, terms and other conditions to be imposed upon the sale of any such real property that is intended to be transferred to any third party, whether a private entity or governmental agency. All agreements entered into by and between AHS and any housing project developer or landowner seeking to obtain any form of redevelopment housing assistance or other form of participation agreement, reimbursement agreement other housing project related agreement from AHS shall be included in the quarterly reports as required by Section 1.07 hereof. 6 P:\Agendas\Comm Dev Commission''2011 CDC ltems\Special Joint Workshop'03-03-11 Agency & AHS - Housing Capitalization Funding Agreement.docx CDC/2011-11 ARTICLE III EVENTS OF DEFAULT; RIGHTS AND REMEDIES Section 3.01. Each of the following occurrences shall constitute an "Event of Default" under this Funding Agreement: (a) Failure to Make Payments When Due. Failure by either party to pay any amount due on or before the date that such payment is due and payable pursuant to this Funding Agreement. (b) Other Defaults. Should AHS fail duly and punctually to perform or observe any agreement, covenant or obligation binding on AHS under this Funding Agreement which could lead to an Event of Default, such failure shall continue for thirty (30) calendar days after the earlier of (i) the date as of which AHS had actual knowledge of such failure, and (ii) the date on which the Agency gives AHS notice of such failure. ( c) Breach of Representation or Warranty. Should any representation or warranty made or deemed made by one party to the other party herein be false or misleading in any material respect on the date as of which made which could lead to an Event of Default which is not remedied to the satisfaction of the non-defaulting party within ninety (90) calendar days following receipt by the defaulting party of written notice of such inaccuracy. (d) Failure to Assign. Failure of AHS to comply with the written notice ofthe Commission for the assignment of this Funding Agreement to a joint powers authority as may be directed by the Commission to AHS pursuant to Section 1.03 shall be an Event of Default pursuant to this Section 3.01(e), and the Commission may thereupon terminate this Funding Agreement immediately upon receipt of such notice of tern1ination by AHS without cure and without any prior notice. (e) Amendment to AHS Bylaws. Any amendments to the adopted Bylaws of AHS that amend, change or otherwise modify the form of said Bylaws as were in existence as of the date of this Funding Agreement without the prior written approval of the Commission as required by Section 1.04 shall be an Event of Default pursuant to this Funding Agreement. Upon the occurrence of any such Event of Default pursuant to this Section 3.01(d) for failure of AHS to comply with Section 1.04, the Commission may thereupon tem1inate this Funding Agreement immediately upon receipt of such notice oftennination by AHS without cure and without any prior notice. (f) Failure to Maintain Tax-Exempt Status. Any failure of AHS to maintain the current tax- exempt status of AHS as an Internal Revenue Code Section 50 I (c )(3) non-profit corporation as required by Section 1.05 shall be an Event of Default under this Section 3.01(f). Upon the occurrence of any such Event of Default pursuant to this Section 3.01(f) for failure of AHS to comply with Section 1.05, the Commission may thereupon terminate this Funding Agreement immediately upon receipt of such notice of tennination by AHS without cure and without any prior notice. Section 3.02. Rights and Remedies. (a) Acceleration, Etc. Upon the occurrence of any Event of Default by the Agency to remit the tax increment revenues to AHS, the unpaid principal amount of any and all Low Mod Funds payable pursuant to this Funding Agreement shall automatically become immediately due and payable 7 P:\AgendasTomm Dev Comrnission\.:!OI! CD(' ltems\Special Joint Workshop\03-03-11 Agency & AHS . Housing Capitalization Funding Agreement.docx CDC/2011-11 for each fiscal year in which such Event of Default shall have occurred. After the expiration of all cure periods by the Agency, thereafter AHS may exercise any or all rights and remedies under this Funding Agreement or otherwise pursuant to applicable law. (b) Waiver of Demand. Demand, presentment, protest and notice of nonpayment are hereby waived by AHS. AHS also waives, to the extent permitted by law, the benefit of all valuation, appraisal and exemption laws. (c) Parties to Institute Proceedings. Upon a default by either party, the non-defaulting party may institute any proceeding at law or in equity to enforce the obligations of the other party under this Funding Agreement and/or any covenants and obligations of the other party contained in this Funding Agreement. (d) Waivers, Amendments and Remedies. No delay or omission of the either party to exercise any right under this Funding Agreement shall impair such right or be construed to be a waiver of any Event of Default or an acquiescence therein, and any single or partial exercise of any such right shall not preclude other or further exercise thereof or the exercise of any other right, and no waiver, amendment or other variation of the terms, conditions or provisions of this Funding Agreement whatsoever shall be valid unless in a writing signed by the other party, and then only to the extent in such writing specifically set forth. All remedies contained in this Funding Agreement or by law afforded shall be cumulative and all shall be available to the parties until the obligations have been paid in full and this Funding Agreement has been terminated or until the expiration of the Term of this Funding Agreement. ARTICLE IV MISCELLANEOUS Section 4.01. Amendment. The provisions of this Funding Agreement may be amended only upon the written approval of the parties hereto which approval shall be granted at the absolute and sole discretion of each party. Section 4.02. Beneficiaries of Funding Agreement. To the extent applicable, the parties identified in the Housing Related Programs and the Other AHS Contractual Obligations are expressly recognized as a third party beneficiary hereto. Nothing in this Funding Agreement, expressed or implied, is intended to give to any person, other than AHS and the Agency, as parties hereto, and those parties identified in the Housing Related Programs and the Other AHS Contractual Obligations, all as third party beneficiaries hereof, any right, remedy or claim under or by reason of this Funding Agreement. Any covenants, stipulations, promises or agreements in this Funding Agreement contained by and on behalf of AHS and the Agency or any member, officer or employee thereof shall be for the sole and exclusive benefit of AHS and the Agency as parties hereto and the parties identified in the Housing Related Programs and the Other AHS Contractual Obligations as third party beneficiaries hereof. Section 4.03. No Personal Liability. No member, officer or employee of AHS or the Agency shall be individually or personally liable for the payment of any amounts of the tax increment revenues as pledged to AHS by the Agency pursuant to this Funding Agreement; but nothing herein contained 8 P:\Agendas\Cornm DC\' Commission\2011 (,DC Hems'Special Joint Workshop\03-03-11 Agency & AHS - Housing Capitalization Funding Agreement.docx CDC/2011-11 shall relieve any member, officer or employee of AHS and the Agency from the performance of any official duty provided by law. Section 4.04. Partial Invalidity. If anyone or more of the agreements or covenants or portions thereof provided in this Funding Agreement to be performed on the part of AHS or the Agency should be contrary to law, then such agreement or agreements, such covenant or covenants, or such portions thereof, shall be null and void and shall be deemed separable from the remaining agreements and covenants or portions thereof. Section 4.05. Notices and Delivery. Any consent, notice or other communication herein required or permitted to be given shall be in writing and may be personally served, telecopied or sent by courier service or United States mail and shall be deemed to have been given when delivered in person or by courier service, upon receipt of a telecopy (or on the next business day if such telecopy is received on a non-business day or after 5:00 p.m. (at the office of the recipient) on a business day) or four (4) business days after deposit in the United States mail (registered or certified, with postage prepaid and properly addressed). Any party delivering a communication by telecopy shall also send a copy thereof by one of the other means provided in this Section 4.05. For the purposes hereof the addresses of the parties hereto (until notice of a change thereof is delivered as provided in this Section 4.05) shall be as set forth in the official business addresses of each party as of the date of this Funding Agreement and at such other address as may be designated by such party in a written notice to all of the other party. Section 4.06. Survival of Warranties and Agreements. All agreements, representations, warranties and indemnities made or given herein shall survive the execution and delivery of this Funding Agreement and the making, repayment and fulfillment of the obligations of the parties as incurred in this Funding Agreement. Section 4.07. Severability. In case any prOVIsIOn III or obligation under this Funding Agreement shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby. Section 4.08. Headings. Section headings in this Funding Agreement are included herein for convenience of reference only and shall not constitute a part of this Funding Agreement for any other purpose or be given any substantive effect. Section 4.09. Governing Law; Waiver. This Funding Agreement shall be governed by, and shall be construed and enforce in accordance with, the laws of the State of California. Section 4.10. Successors and Assigns. This Funding Agreement shall be binding upon the parties hereto and their respective successors and assigns. The tenns and provisions of this Funding Agreement shall inure to the benefit of any assignee or transferee of the tax increment revenues or any portion thereof, and in the event of any pennitted such transfer or assignment, the rights and privileges herein conferred upon the applicable party shall automatically extend to and be vested in such transferee or assignee, all subject to the terms and conditions hereof. 9 P:'Agendas\Comm De\' Commission'2011 CDC Items\Special Joint Workshop\03-03-11 Agency & AHS - Housing Capitalization Funding Agreement.docx CDC/2011-11 Section 4.11. Performance of Obligations. AHS agrees that the Agency may, but shall have no obligation to, make any payment or perform any act required of AHS under any of the obligations as incurred by AHS pursuant to this Funding Agreement or take any other action which the Agency in its discretion deems necessary or desirable to protect or preserve the pledge of the tax increment revenues pursuant to this Funding Agreement. Section 4.12. Construction. The parties acknowledge that each party has reviewed and revised this Funding Agreement and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Funding Agreement or any amendments or exhibits hereto. Section 4.13. Entire Agreement. This Funding Agreement embodies the entire agreement between the parties and supersedes all prior agreements, written and oral, relating to the subject matter hereof. Section 4.14. Execution in Several Counterparts. This Funding Agreement may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original; and all such counterparts, or as many of them as AHS and the Agency shall preserve undestroyed, shall together constitute but one and the same instrument. III III III III III III III III III III III III III 10 P;\Agendas\C'omrn De\' Commission\2011 CDC Jtems",Special Joint Workshop\03-03-11 Agency & AHS - Housing Capitalization Funding Agreement.docx CDC!2011-11 IN WITNESS WHEREOF, the Redevelopment Agency of the City of San Bernardino and Affordable Housing Solutions, Inc., a California non-profit corporation, have caused this Housing Capitalization Funding Agreement to be signed in their name by their respective Executive Director and President all as of the date and year first above written. AGENCY Redevelopment Agency of the City of San Bernardino By: Inte~6;,;; ATTEST: By: APPROVED AS TO FORM: By: c-~~ Agenc ou 1 AHS Affordable Housing Solutions, Inc., a California non- profit corporation By: AT~ By: 1.- b ../ Secr tar 11 P:\Agcndas\Comm Dcv Comrnission\2011 CDC Itcms\Spccial Joint Workshop\03-03-11 Agency & AHS - Housing Capitalization Funding Agrccmcnt.docx CDC/2011-11 EXHIBIT "A" Housing Related Programs (From Approved 2010-2011 Budget) 12 P:\Agendas\Conun De\' Commission\2011 CDC Jtems\Special Joint Workshop\03.03-1! Agency & AHS . Housing Capitalization Funding Agreernent.docx CDC/2011-11 ] Line 7201 Page 1 of 1 ] ] Expenditure Detail - Capital Expenses Development Capital Expenses Housing - Budget Line 7201 Project Area Description of Activity Amount ] ] ] Low-moderate Carrv-Over: A. SF Beautification Grant B. City Wide HAP C. 49th Street Telacu property acquisition/relocation/demo D. 5th and Merdian Project E. Annual Notice of Funds Available - 2009/10 F. Senior & Disabled minor repairs G. Housing Programs/BP carry-over funds...... 1,000,000 2,000,000 500,000 2,000,000 6,000,000 136,000 4.281.300 15,917,300 ] New Proiects: A. Housing prog funds (using carry-over)...... B. Utility Rebate Program Low Income C. Residential revitalization opportunities D. Highland and Medical Center Senior Housing E. Annual Notice of Funds Available -2010/11 F. Rehabilitation Loan Program - HSC Violations (4,281,300) 75,000 3,000,000 3,950,000 6,000,000 500,000 ] ] 25,161,000 1 ..J ESGP A. Grant for 2009-10 for Programs as previously approved HPRP A. Home Prevention Rehabilitation Program HOME A. Grant for 2009-10 for Programs as previously approved B. Carry-over from prior years - allocated C. Mobile Home Grant Program Administration D. Home Buyer Education and Training NIP A. Neighborhood Initiative Program NSP A. Neighborhood Stabilization Program 158,200 ] 1,338,000 1 J 1,598,400 2,601,000 200,000 80,000 1 , ..l 140,000 4,295,000 ] 1 I '" Project Area Recap: Low-moderate ESGP HPRP HOME NIP NSP Total Line 7201 25,161,000 158,200 1,338,000 4,4 79,400 140,000 4.295.000 35.571.600 J 1 l .. Page 44 CDC/2011-11 EXHIBIT "B" Housing Compliance Plan of the Agency's Implementation Plan 13 P:',,Agendas\Comm De\' Commission\2011 CDC ltems\Special Joint Workshop\03.03-11 Agency & AHS - Housing Capitalization Funding Agreement.docx SECTION III: HOUSING COMPLIANCE PLAN 64 INTRODUCTION Overview of the Housing Complianc:e Plan The CRL requires agencies to adopt an affordable housing compliance plan that identifies how the Agency will achieve the affordable housing production requirements for each Project Area. The compliance plan must be consistent with the jurisdiction's housing element and must also be reviewed and, if necessary, amended at least every five years in conjunction with the cyclical preparation of the housing element or the agency's five year implementation plan. This section of the Implementation Plan addresses specific requirements in the CRL with respect to prior affordable housing activities and the anticipated housing program for the current ten-year planning period (fiscal years 2004-05 through 2013-14) ("Compliance Period"). This Housing Compliance Plan amends the Affordable Housing Compliance Objectives adopted on January 22, 2007 and presents an updated affordable housing plan through the duration of the Compliance Period. Additionally, the Housing Compliance Plan details the Agency's Housing Goals and proposed work program during the Compliance Period and evaluates the Agency's affordable housing requirements for the next ten years (FY 2009-10 to 2018-19) and the life of the Redevelopment Plans. The Agency is required to allocate 20% of the tax increment revenue it receives from the Project Areas to increase and improve housing affordable to very low, low, and moderate income households. The Housing Fund has been established for this revenue. The Agency has the authority to expend the Housing Fund either inside or outside the Project Areas and aggregate its housing production activities among all Project Areas to more effectively meet housing program objectives. This includes the area contained within the Inland Valley Development Agency ("'VDA") Redevelopment Project Area located within the City of San Bernardino jurisdictional boundaries. The Agency, with the adoption of its 2004 Housing Compliance Plan, has taken action to aggregate its new and substantially rehabilitated units among all Project Areas. The Agency will consider similar action at the Public Hearing to consider the adoption of this Implementation Plan. It is anticipated that, based upon the evidence provided, the Agency will find that the aggregation of its affordable housing obligations among its Project Areas is of benefit to the Project Areas and the community, and that such aggregation will not cause or exacerbate racial, ethnic, or economic segregation. Redevelopment agencies use implementation plans to establish ten-year objectives to achieve compliance with the CRL in its affordable housing programs. These generally fall into three categories: . Housing Production - Based on the number of housing units constructed or substantially rehabilitated over a ten-year period, a redevelopment agency must ensure that a percentage of these units are affordable to low and moderate income households. . Replacement Housing - Another legal obligation of redevelopment agencies is to ensure that any housing units destroyed or removed as a result of an agency redevelopment project are 'replaced within four years. . Expenditures by Household Types - Redevelopment agencies must meet specific requirements on the amount of Housing Funds spent over a ten-year period on housing affordable to very low income households, low income households, and housing for residents under the age of 65. 65 - - -- - ---- IVDA PROJECT AREA AND HOUSING POLICY WITH THE AGENCY IVDA is a joint powers authority comprised of the Cities of Colton, Loma Linda, Redlands, and San Bernardino, and the County of San Bernardino (the "County"). The IVDA Project Area was adopted by ordinance of the IVDA on July 18, 1990. The IVDA Project Area covers approximately 14,000 acres within approximately 22,400 (assessor's) parcels. The majority of land within the IVDA Project Area falls within the City and County unincorporated territory, with somewhat smaller areas falling within the Cities of Colton, Loma Linda, and Redlands. The IVDA was formed in response to the federal government's decision to close the Norton Air Force Base. Under the CRL, specific authority was granted to these jurisdictions to fo.rm a redevelopment project area within three miles of the territory surrounding, adjacent to, or in proximity to the Norton Air Force Base. Base closures have a significant impact on the economy of the surrounding area and authority was granted to the IVDA and participating agencies to revitalize this area. The IVDA and participating jurisdictions have entered into an agreement whereby said jurisdictions have agreed to administer IVDA's Low and Moderate Income Housing Funds to increase and improve the communities' supply of housing available at affordable housing costs to persons and families of very low, low, and moderate income households within their respective jurisdictional boundaries. Pursuant to the current IVDA affordable housing program, 20% housing set-aside funds are transferred by the IVDA to each participating jurisdiction which in turn use these funds for specific affordable housing development activities either within the portion of the IVDA Project Area located within their jurisdictional boundaries or elsewhere in the territorial jurisdiction of the participating jurisdiction. Each participating jurisdiction provides the IVDA with an annual written report on the member's use of such affordable housing funds. Under the provisions of CRL Section 33413(b}(2}(ii}, when a redevelopment agency produces an affordable housing unit outside its project area, an agency may only claim a 50% "inclusionary housing credit" for such a housing unit. On September 14, 2005 the IVDA adopted Resolution No. 2005-08 which permitted each member jurisdiction that adopts an acceptance resolution of the IVDA Inclusionary Housing Policy to receive 100% of the inclusionary/replacement housing credits for any developed or newly rehabilitated housing unit undertaken by the member jurisdiction or its duly formed redevelopment agency within the IVDA Project Area that is also within the territorial jurisdiction of such member jurisdiction. The Agency on November 7, 2005 adopted Resolution No. CDC 2005-38, which accepted the IVDA Inclusionary Housing Policy. The Agency is now able to receive 100% of the inclusionary/replacement housing credits for developed or rehabilitated housing units within the IVDA Project Area. As such, this Implementation Plan encompasses both those units created/replaced within the San Bernardino Project Areas and the IVDA Project Area, collectively referred to as the "Project Areas." Although the IVDA has been transferring its 20 percent housing set-aside funds annually to theAgency, it should be noted that the IVDA, the legislative body which controls its 20 percent set-aside, could make a finding and determination to withhold these funds at any time. Consequently, any and alllVDA funds should be treated and used as "estimates and projections." Future revenue streams from IVDA funds are uncertain and therefore restrict the Agency's bonding capacity if supported by tax increment revenue generated within the IVDA Project Area. 66 AGENCY'S FIVE YEAR AFFORDABLE HOUSING GOALS Community Affordable Housing Focus In conjunction with the Mayor and Council members, the Agency completed an Integrated Housing Strategy (UIHS") on October 20, 2008 to help focus implementation activities to meet the City's current and future housing needs. As a result of the IHS and the goals indentified in the Redevelopment Plans, the following details the Agency's housing goals over the remainder of the Compliance Period: . HELP o INVEST ~ COLLABORATE ~ PRESERVE Notice of Funding Availability. Create a more objective and consistent system for awarding funds for housing projects. Invest, Promote, and Produce. Promote affordable housing development in the Project Area(s) by providing housing resources for greater community sustainability. Efficiently and creatively expend scarce housing resources. Encourage Community Engagement. Encourage private sector investment and development of affordable housing by supporting the cooperation and participation of residents, business owners, public agencies, and community organizations. Housing Accessible to All Families. Increase, improve, and preserve the supply of housing, especially housing affordable to very low, low, and moderate income households. Increase home ownership in the residential portions of the Project Areas. AGENCY AFFORDABLE HOUSING FIVE YEAR STRATEGY Affordable Housing Strategic Programs The following describes the Strategic Programs the Agency will undertake to achieve its affordable housing goals in the Project Areas. The Strategic Programs were identified as part of the IHS and Agency staff input on additional needs since the IHS was prepared. The Strategic Programs, including the projects contained within, will be facilitated in all of the Project Areas to satisfy the Agency's affordable housing requirements pursuant to the CRL. . Affordable Housing Project Solicitation: The Agency will allocate funds on an annual basis that will be used to review development proposals, provide project gap funding, improve housing stock, and ensure adequate affordable housing management. The purpose of this is to provide funding to address housing needs throughout the City as they arise while meeting affordable housing needs. 67 . Single-Family Homeownership and Neighborhood Revitalization: The Agency seeks to facilitate programs designed to enhance residential neighborhoods and promote responsible homeownership. This will create healthy and sustainable communities throughout the City. . Strategic Site Specific Development: The Agency will explore opportunities to acquire specific strategically located sites for affordable multi-family and single family housing development. Sites will generally be chosen based on presence of blight or the potential of being a catalytic project spurring private investment. . Grant and Loan Procurement: The Agency will seek grant and loan opportunities that can be immediately inserted into existing programs and projects in order to extend the Agency's delivery of housing production. By applying for specific grant and loan opportunities that integrate smoothly into existing Agency activities, the speed of new development will increase without additional cost to the Agency. AFFORDABLE HOUSING WORK PROGRAM The list below describes the proposed strategies and related projects for affordable housing across all Project Areas, including Housing Goals that would be achieved, projected timeframe, and estimated costs to implement each Strategic Program over the next five years.ll Additional projects that are not listed may be implemented over the next five years in accordance with the Strategic Programs. I P . tJD . to HOG I A h' d ' Projected rOJec escnp Ion ouslng oa s cleve T' f Ime rame , STRATEGIC PROGRAM H-1: AFFORDABLE HOUSING PROJECT SOLICITATION. A total of $17,450,000 from the Housing Fund has been allocated towards this program over the remainder of the Compliance Period. CJ Notice of Funding Availability: Program that provides for; affordable housing development by informing potential developers of the availability of housing funds from the Agency's various housing fund resources. .o~@ Ongoing HELP INVEST COLlA.ORATI "RESERVE STRATEGIC PROGRAM H-2: SINGLE-FAMilY HOMEOWNERSHIP AND NEIGHBORHOOD REVITALIZATION. A total of $15,760,000 from the Housing Fund has been allocated towards this program over the remainder of the Compliance Period. o Residential Revitalization Opportunities: Funds allocated to neighborhood housing projects to lessen blight and promote high quality affordable housing. O~ FY 12-13 thru FY 13-14 INVEST COLLABORATE CJ Homebuyer Assistance Program: Citywide housing program that promotes home ownership through a deferred payment second trust deed loan targeted to income eligible home buyers. O~@ Ongoing INVEST COLLAIIIORATE PRESlRVE CJ Code Compliance Receivership Program: Program that utilizes Section 17980.7 of the California Health and Safety Code to target blighted residences for rehabilitation and overall neighborhood revitalization. o Ongoing INVEST 11 Costs are subject to change, and completion of these projects may require future action by the Agency. 68 Project/Description . . Projected Housmg Goals Achieved T" f Ime rame o Single Family Rehabilitation Program: Program provides : grants of $10,000 to income eligible homeowners for exterior! rehabilitation within designated target areas. Grant may be : used for exterior painting, landscaping, sprinklers, fencing, driveway, security lighting or roofing. o Old Timers Grant Program: The Old Timers Foundation, a local non-profit corporation, performs minor and emergency repairs to low-income homeowners (80% and below median , income). The repairs generally do not exceed $1,600 per , house. Eligibility requirements require that the applicant be a I senior age 60, disabled, handicapped, or a recipient of Social Security Income. O~(!) 'NVEST COLLAIORATI 'RESERVE O~(!) INVEIT COLLA.ORATE PAESEAVE Ongoing Ongoing STRATEGIC PROGRAM H-3: STRATEGIC SITE SPECIFIC DEVELOPMENT. A total of $16,800,000 from the Housing Fund has been allocated towards this program over the remainder of the Compliance Period. o Land Acquisition, Relocation, and Demolition Program: ! Program that promotes ancillary development and site' preparation activities for future development of Agency properties. o 5th and Meridian Project: Project located along the 2600 block of W. 5th Street that is targeted for acquisition, tenant relocation, and a RFP soliciting an affordable housing developer. o 49th Street Housing: Further acquisition and demolition for future housing development through the acquisition of blighted properties to be replaced by up to seven new affordable and market rate single family homes. o 19th and Sunrise Project: Acquisition, relocation, rehabilitation and/or demolition of a series of blighted four-plexes to be followed by affordable rental housing and newly built for-sale single family homes. o Magnolia-Highland Senior Housing: New construction of 80 units of affordable senior housing to be built on a previously blighted commercial site. This represents the first project from the Agency's NOFA program. o INVEST O~(!) INVEST COLLA.ORATE 'R[SEAVE O$(!) INVEST COLLABORATE PAESERVE O~(!) INYEST COLLABORATE PRESERVE 80 ~ (!) HELP INVEST COLLA.OIIIATE 'RESERVE Ongoing FY 09-10 thru FY 11-12 FY 09-10 thru FY 11-12 FY 09-10 thru FY 12-13 FY 09-10 thru FY10-11 STRATEGIC PROGRAM H-4: GRANT AND LOAN PROCUREMENT. A total of $250,000 from the Housing Fund has been allocated towards this program over the remainder of the Compliance Period. o Tax Credit Procurement: Technical assistance funds allocated to develop and submit competitive low-income housing tax credit applications. O(!) INVEST PRESERVE Ongoing 69 P "tiD "t" HOG I A hO d I Projected roJec escnp Ion ousmg oa s cleve 'To f Ime rame , o Action Programs and Applications: Technical assistance funds allocated to secure federal, state and other affordable housing grants and related resources. O~(!) Ongoing INVEST COLLAeORATI 'RESERVE STRATEGIC PROGRAM H-5: OTHER STRATEGIC HOUSING DEVELOPMENT ACTIVITIES. A total of $3,337,670 from the Housing Fund has been allocated towards this program over the remainder of the Compliance Period. o Casa Ramona I Highland Stand by: Funds allocated on a I stand-by basis to assist developer financing of an affordable , senior housing project previously assisted with Agency housing set-aside funds. O(!) FY 09-10 thru FY 13-14 INVEST 'RE5fRVE 0 Utility Rebate Program: Program provides sewer, water, and 0 refuse rebates to eligible owner-occupied households. INVEST 0 Mobile Home Inspection Program: Funds used to pay a 0 portion of the salary of a city building inspector whose job it is to identify health and safety violations in the city's network of mobile home parks and to cite those violators. INVEST 0 Emergency Relocationl Rent Assistance: Funds used by 0 the City Attorney's Office to pay for emergency relocation of low-income tenants of residential rental properties cited for INVEST severe health and safety code violations. 0 Casa Ramona Grant: Grant funds made available to an O(!) affordable senior housing project previously assisted with I Agency housing set-aside funds. INVEST PRESERVE Ongoing Ongoing Ongoing FY 09-10 thru FY 13-14 70 AFFORDABLE HOUSING COMPLIANCE BLUEPRINT FOR AGENCY HOUSING ACTIVITIES The Housing Compliance Plan seNes as a blueprint for current and future Agency activities within the Project Areas and outlines how it will meet its low and moderate income housing responsibilities and eliminate blight. This Housing Compliance Plan presents a summary of the Agency's inclusionary and replacement housing programs as mandated by Sections 33413(b)(4) and 33490(a)(2) and (3) of CRL Sections 33000 et seq. Specifically, it presents a forecast of the number of affordable housing units that may be required over the ten-year Compliance Period, and assesses the Agency's plans to facilitate the creation of the required number of affordable housing units within this timeframe. Adoption of a Housing Compliance Plan does not constitute approval of any specific project, program, or expenditure, and it does not change the need to obtain any required approval of a specific program, project, or expenditure from the Agency or community. The Housing Compliance Plan is a general statement of direction rather than an unalterable course of action. As such, in order to effectuate its purposes due to unknown circumstances or new opportunities that arise from time to time, the Agency may amend the Housing Compliance Plan during the five-year term of the Implementation Plan at any point, including but not limited to the mid-term opportunity as required by CRL. HOUSING PRODUCTION Since 1976, redevelopment agencies have been required to assure that, for all units developed in a project area by entities other than an agency, at least 15% of these new or substantially rehabilitated dwelling units be made available at affordable costs to very low, low, or moderate income households. Of these affordable units, not less than 40% are required to be available at affordable costs to very low income households. These requirements are applicable to housing units as aggregated, and not on a project-by-project basis to each dwelling unit created or substantially rehabilitated unless so required by an agency. These affordable housing production requirements differ for Agency-developed housing versus privately-developed housing. The CRL requires that at least 30% of all new or substantially rehabilitated units directly developed by an agency (within a project area) be available at affordable costs to households of very low, low, or moderate income. Of this 30%, not less than 50% are required to be available at affordable costs to very low income households. It is the practice of this Agency to enter into agreements with third party developers to build all affordable housing units in the Project Areas, and not directly develop housing. The Agency intends to continue this practice through the remaining life of the Redevelopment Plans. Appendix 2 provides a glossary of terms related to affordable housing covenants, affordability limits, and inclusionary unit satisfaction. Table 111-1 on the following page shows the total amount of affordable units that have been or are anticipated to be produced in the Project Areas. Those affordable units already produced have documented covenants appropriate to the time in which they were produced and have been counted towards the inclusionary requirements triggered by development in the Project Areas pursuant to CRL Section 33413(c)(1). These affordable units which have been counted towards inclusionary requirements cannot also be used to replace affordable units destroyed within the Project Areas. At this time, no affordable units produced outside the Project Area are expected to be counted towards inclusionary housing requirements. However, in the future, housing units restricted to lower income households produced outside the project Areas may be used towards satisfying inclusionary housing requirements on a 2-for-1 basis according to Section 33413(b)(2)(ii) of the CRL. 71 Production of Affordable Units San Bernardino Economic Development Agency Table III - 1 Total Low & Affordable Very Low Moderate Units 1 Units Units Produced From Adoption through 626 537 89 6/30/2009 Projected To Be Produced From 7/1/2009 through the End of the 404 163 241 Redevelopment Plans Total Affordable Units Produced 1,030 700 330 1 Does not include units that are to replace demolished affordable units As of June 20, 2009, there have been 537 very low income and 89 low and moderate income units produced in the Project Areas since the adoption of the Redevelopment Plans. From July 1, 2009 through the termination of the Redevelopment Plans, it is projected that 163 very low and 241 low or moderate income restricted units will be produced. Therefore, throughout the entire life of the Redevelopment Plans, it is estimated that a total of 1,030 very low, low, or moderate income restricted units will have been produced in the Project Areas. The Inclusionary Housing Obligations table on the following page (Table 111-2) summarizes the production goals over various time periods as required by the CRL; a summary by Project Area may be found in Appendix 3. The number of affordable units required is based on statutory thresholds prescribed by the CRL, and the Agency is responsible for ensuring that the appropriate number of affordable units is created during the Compliance Period. Pursuant to CRL Section 33413(d)(1), project areas adopted before 1976 are exempt from the production requirements previously described for very low, low, and moderate income housing ("inclusionary units"). This exemption is removed if a 10-year extension of the project area's effectiveness is adopted under CRL Section 33333.10. Meadowbrook / Central City, State College, and Central City North Project Areas were adopted in 1970 and 1973, respectively, and are being amended pursuant to CRL Section 33333.10. Therefore, housing units built in these Project Areas prior to the amendment do not generate inclusionary housing obligations. However, these Project Areas will generate an inclusionary obligation upon adoption of the 10-year extension. Since the Age'ncy has aggregated its housing production obligations across all Project Areas, affordable units produced in these Project Areas may be used to satisfy obligations generated in other Project Areas in the City. To estimate the number of housing units that need to be affordable to low and moderate income households, the Agency estimated the total number of units to be constructed or substantial rehabilitated in the Project Areas and applied formulas established in the CRL. The following inclusionary housing analysis takes into account all residential construction or substantial rehabilitation that occurred within the Project Areas since their adoptions to determine affordable housing production needs, and includes projections for the number of additional dwelling units to be constructed or 72 CDC/2011-11 substantially rehabilitated during the Compliance Period, the next ten years, and over the life of the Redevelopment Plans. Appendix 4 shows a complete listing of all housing units counted towards the Agency's Inclusionary Housing Obligations through June 30, 2008 as well as the affordability covenants associated with each of the units. 73 Incluslonary Housing Obligations Table III - 2 San Bernardino Economic DeveloDment Aaency Aggregate of All Project Areas Units Total Low & Affordable Very Low Privately Units Units Moderate Developed Required2 Units Housing Units Developed 4 901 138 58 80 ~. Adoption through 6/30/1994 0'" Affordable Units Built or Covenanted ~~J .- ... ... ..... 22 1 21 c.- Adoption Through 6/30/1994 00 'C!:2 <co Affordable Units Surplus (Deficit) I Adoption Through 6/30/1994 (116) (57) (59) .' 'tI Housing Units Developed 4 45 22 23 0 253 'I: '. 7/111994 - 6/30/2004 ClI a- .0 i ...0 Affordable Units Built or Covenanted ..: ...N 498 447 51 ); .....- 7/1/1994 - 6/30/2004 _0 Q !:~ ... t-.co Affordable Units Surplus (Deficit) I U; 453 425 28 ... 7/1/1994 - 6/30/2004 CUMULATIVE AFFORDABLE UNIT SURPLUS (DEFICIT) , I 337 368 (31) ADOPTION THROUGH 6/30/2004 Housing Units Developed 4 280 46 22 24 . . ... 7/1/2004 - 6/30/2009 ~~8 Affordable Units Built or Covenanted I . "'~~ 7/1/2004 - 6/30/2009 106 89 17 'tI ..... , 0 0 E::::~ 'i:: N Affordable Units Surplus (Deficit) .' I 60 67 (7) ClI 0 a- M ~p~~~~~~~------------- ..: CD ---- -~----------------- ); . Housing Units to Be Developed (Est.) 4 Q . . . 'O:t 251 43 22 21 ... 0 ~...... 7/1/2009 - 6/30/2014 0 QQ 'tI ~ ",Q~ I: 'tI~Q Affordable Units To Be Built or Covenanted (Est.) I N ;::: ~::::~ 404 163 241 7/1/2009 - 6/30/2014 Affordable Unit Surplus (Deficit) Over 2nd 10 Year " 'f< ". I Compliance Period (Est.) 7/1/2004 . 6/30/2014 423 209 214 CUMULATIVE AFFORDABLE UNIT SURPLUS (DEFICIT) (Est.) I 758 576 182 ADOPTION THROUGH 6/30/2014 ..: .... Housing Units to Be Developed (Est.) 4 190 32 15 17 );'t1 ...... ~ .g ..... 0 7/1/2014 - 6/30/2019 oN N - I 'E8: _ 0 Affordable Units To Be Built or Covenanted (Est.) ..... M 0 0 0 ... ;;:Ui 7/112014 - 6/30/2019 'h,: . CUMULATIVE AFFORDABLE UNIT SURPLUS (DEFICIT) (Est.) ~(-. foot 'J ADOPTION THROUGH 6/30/2019 726 561 165 . Housing Units to Be Developed (Est.) 4 22 ... 268 44 22 .....'C 7/1/2019 - End of Redevelooment Plans o c !::!w Affordable Units To Be Built or Covenanted (Est.) ,; I ..... 0 0 0 ;::: 7/1/2019 - End of Redevelopment Plans ,~, ,~~-~.~~u~,; '''\OJ' "1 CUMULA TlVE AFFORDABLE UNIT SURPLUS (DEFICIT) (Est.) . .'''' ,,- ADOPTION THROUGH THE END OF REDEVELOPMENT PLANS ~, ~~;~~g~~~.~ +682 +539 +143 '. '. f Due to the proposed Amendment to the Redevelopment Plan which will extend the effectiveness of the Plan for the Project Area by 10 years, Project Area will begin to trigger inclusionary housing requirements in 2010-11 pursuant to CRL Section 33333,10. , Pursuant to CRL Section 33413(d)(1), project areas adopted before 1976 are exempt from the requirement to restrict as affordable to very low, low, and moderate income households. , 15% of All Units Developed or Substantially Rehabiliated · Housing Units Developed / To be Developed include both newly constructed units and substantially rehabilitated units per CRL Section 33490(a)(2)(8), 74 CDC/2011-11 Table 111-2 shows that development over the past five years has generated a need for 22 very low and 24 low or moderate income restricted units. As 89 very low income units and 17 low and moderate income units were produced during this time, there remains a surplus of 67 very low income units but a deficit of 7 low or moderate income units. Development that is anticipated to occur over the next five years in the Project Areas will generate the need for 43 affordable units, 22 of which must be restricted to very low income households. The Agency further anticipates that during the same time period, 404 affordable units will be produced, 163 units of which are expected to be restricted to very low income households and 241 to low or moderate income households. Therefore, during the course of the current ten-year Compliance Period, it is estimated that the Project Areas will have produced a total surplus of 423 affordable units, 209 of which are very low and 214 are low or moderate units. Taking this surplus into account, it is projected that, from adoption of the Redevelopment Plans through June 30, 2014, the Project Areas will likely have a total surplus of 758 affordable units, 576 of which will be restricted to very low income households and 182 to low or moderate income households. Through. the remaining effective term of the Redevelopment Plans, the Agency has projected that the number of housing units that are to be produced will be based on historical development trends and amounts of available land in each of the Project Areas. During the first five years of the next Compliance Plan period, fiscal years 2014-15 through 2018-19, the Agency anticipates that development will generate the need for 15 very low and 17 low income units. Similarly, development that will occur from fiscal year 2018-19 through the term of the Redevelopment Plans will generate the need for 22 very low and 22 low income units. Taking into account the surplus of affordable units at the end of the current Compliance Plan Period, there will still remain a surplus of 539 very low and 143 low income units at the expiration of the Redevelopment Plans. As described earlier in this Implementation Plan, the Agency anticipates development of affordable housing projects in the Project Areas over the Compliance Period that may result in sufficient units to meet the housing production goal. Included in Appendix 2 is a breakdown of projected housing production by Project Area. The fulfillment of the projected housing needs is anticipated to be accomplished through the completion of the programs listed in Work Program. 75 CDC/2011-11 REPLACEMENT HOUSING Summary of Replacement Units Versus Demolished Units . Table III - 3 San Bernardino Economic Development Agency # of Units # of Bdrms Very Low Units Low & Mod Units ~~ Demolished 366 714 272 94 0)0 ::10 ot:! Replaced 1122 2314 751 371 ~O ~M I-Ci) Surplus (Deficit) 756 1600 479 277 'en Demolished 187 333 80 107 ~o 00 ON Replaced 40 81 11 29 N- _0 .... M - - Surplus (Deficit) (147) (252) (69) (78) .....CD Cumulative Surplus (Deficit) 609 1348 410 199 Through June 30, 2009 Source: San Bernardino Development Services Department The CRL requires that whenever housing occupied by low and moderate income persons or households are destroyed as part of an Agency project, the Agency is responsible for ensuring that an equivalent number of replacement units are constructed or substantially rehabilitated. These units must provide at least the same number of bedrooms destroyed, and 100% of the replacement units must be affordable to the same income categories (very low, low, and moderate) as those removed. The Agency receives a full credit for replacement units created inside or outside the Project Areas. Table 111-3 above summarizes the units that have been demolished and subsequently replaced in the Project Areas. According to Agency records, there were 366 affordable units that were destroyed in the Project Areas from the adoption of the Redevelopment Plans through June 30, 2004. Of these, 272 units were occupied by very low and 94 were occupied by low or moderate income households. However, during the same time period, 751 very low and 371 low or moderate replacement units were built or covenanted in or outside the Project Areas, generating a surplus of 479 and 277 very low and low or moderate income affordable units, respectively. Similarly, from July 1, 2004 through June 30, 2009, records show that 80 very low and 107 low or moderate income units were destroyed and were replaced by 11 very low and 29 low or moderate income units. This left a deficit for this period of 69 and 78 very low and low or moderate income affordable units, respectively. However, the surplus from the previous period was sufficiently large to offset this period's deficits. Therefore, from adoption of the Redevelopment Plans through June 30, 2009, there were a total of 609 more affordable units produced than were destroyed in the Project Areas. A complete listing of all the replacement units quoted in the above table can be found in Appendix 5. During the remaining Compliance Period through June 30, 2014, the Agency anticipates one additional project that will result in the displacement or removal of affordable housing units in the Project Areas. The 5th and Meridian Avenue Project contains 68 housing units and a Replacement Housing Plan was adopted by the Agency on September 8, 2009. When the Agency purchased the property, 38 units were in such disrepair (lack of plumbing and electrical wiring) that they could not be inhabited without substantial rehabilitation and thus were not viable market units. Of the remaining 30 viable units, 29 very low income units and one moderate income unit will be removed from the housing market and will 76 -- -- -- ----- -------- --- CDC/2011-11 need to be replaced by the Agency. As depicted in Table 111-3, the Agency currently has a surplus of 609 replacement housing units that will be more than sufficient to replace displaced units resulting from the 5th and Meridian Project. HOUSING PROGRAM CASH FLOW ANALYSIS The Agency's primary source of funding for housing projects and programs is the annual deposit of 20% (30% in the MICC and CNN Project Areas) of its tax increment revenue into a special housing set- aside fund. The CRL requires that these funds be used to increase, improve, and preserve the community's supply of housing available, at affordable housing cost, to persons and families of very low, low, and moderate incomes. Other sources of Housing Fund revenues include interest earnings, bond proceeds, IVDA housing revenue, loan repayments, and other miscellaneous revenue. The following table presents the Agency's Housing Fund projected cash flow over the next ten years. The first five years represent the remainder of the Compliance Period (FY 2004-05 through 2013-14) and the subsequent five years represent the beginning of the next compliance period (FY 2014-15 through 2023-24) and is included to assist the Agency with planning for future affordable housing projects and programs. 77 CDC/2011-11 '! .. ~ ~ ~ :! ~ ~ ~ ~ ~ ~ N ~O ~ 0 ~ 0 ~ 0 ~ 0 N '" ~ ~ '" ., " ~ ., ., - , ~ g ~ ~ ~ i:i ~. ~ ~ g ~ ~ t ~ ~ ~ ~ g 6 S .. N ~ ~ . t ,.: ~ ~ ~ .: .; S ~ ~ ~ t .. ~ ~ ~ .... 'g ~ Iii ;! ~ ~ ., ~ ~ ~ ~ Ii ~ '" ~ ~ ~ ~ ~ ~ N ~ ~ .. ., 0> ~ ~ a ~ ~ ~ ~ s ~ iii ~ 3 g ~ 8' ~ ~ g .. ~ ..; Ii' :;t ,. .,; on ~ ~ oi ;:,; si oi ..; ..; si 'a E Il ~ ., ~ ~ 8 ., 8 U 11l ~ ~ ~ 8 ~ ~ .. ~ g .. 'O ~ ~ 'O ., '" N ~ ., ! . 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" ! ili ~~ i;; oJ '" . ! :f :a l S a: c .. ] ~ ~ ~ u C>- o; m ~Q,.: ~ ;;/ ":i .2 ~ ~ ." :r ~ " ; <l . ~ ] ~ ~ ~ 0: 'iia~ 1; t ~ 0 . ~ ~ 0.. ~ l5 15 t; € J: ~ ti :>:: "' !!- ., m~5 f2 I- ~ C>- gf2 ;z '" H " CJ f2 " ~ ~ .. .~ i o i: .. ~ I i '" . ~ i ~ iii < r; II " W)i ~ i i . ~ E; ~ .~ ~H i8 ~l ~ Hq ~" i ~5 ~:: ~~ "':E: ~"t ,&..CI ~& : ~~ 'Q'~ ~E :a ~i&~ '*'!. ! e f II II (>,j 0 i~~ Js~i~ &;;Il~ ~ ~i:!~~ ~~~ ::i 2~~~~ .~:~ ~~ l:~~~ i~~ ~~ &::~'~e 100 .cl _ll:I~!!~.-C"IolC"lol tllQl l~~~Ki~~~ ~! l~~-;~~ab.~ ~(5 ';;i;.~~i~n ~\11. o~.Q~~~'g:: ~ h~~[E"'H ~ .::R!~.fi ~9~~ i .!<i&~n,~~~ q ~"p;;~~n ~~ ~iie~!:~~EE ~] C"Iol!~~~l8~~ G.; it ~ ~ ('oj 1i "( i Os S :! 2 ~ t~~~~~;~';8~o .(;~-;jt:~~~i~;~ ij'[isj]~i:~~.~i ~ ~ ;:~H~H~-gi ~~~~~~~H~t~ ~-;::ite~'""gg:e~~ .~~~.n~h~~l~ i.~~~~~~l!:~t sS~~~'~~~~~Ei ,,~eltll~:!~~~~1;- .O'S~"'Il-~.~O-~ J!~L(L(~~~~.n~ s.~ ~i1::'__.... .. ctJ t- CDC/2011-11 Due to the State's actions to take redevelopment funds to balance the State Budget, the Agency may be required to make Educational Revenue Augmentation Fund ("ERAF") payments during the planning period. In 2008, the State approved the prior budget contingent upon a $350 million shift of tax increment monies from redevelopment agencies to be applied to ERAF. The California Redevelopment Association filed a lawsuit on behalf of all redevelopment agencies asserting that the take from redevelopment was unconstitutional. On April 30, 2009, a judgment in favor' of redevelopment agencies was rendered, affirming that the take was unconstitutional and therefore illegal. The State has since dropped their appeal of the court decision. Following this judgment, the State of California approved the FY 2009-10 budget egregiously relying on a $2.05 billion ERAF shift from redevelopment agencies over the next two years. The additional shift to ERAF (referred to as the Supplemental Educational Revenue Augmentation Fund or "SERAF") is estimated to result in a payment of $11,000,000 in 2009-10, and $2,453,000 in 2010-11 from the Agency. The budget trailer bill, Assembly Bill 26 4x, contains a provision by which the Agency has the option to suspend its fiscal 2009-10 20% housing set-aside contribution in order to assist the ERAF shift in that year; however the loan will need to be repaid by June 30, 2015. If the Agency elects this option, the loan could potentially delay many of the housing programs and projects anticipated over the next five year period. EXPENDITURES BY HOUSEHOLD TYPES Effective January 2002, expenditure of housing set-aside revenues is subject to certain legal requirements. At a minimum, the Agency's Housing Fund revenue is to be expended in proportion to the community's need for very low and low income housing, as well as the proportion of the low income population under the age of 65. New legal requirements took effect in 2006 that modified the previous limitation on spending Housing Fund monies on households under the age of 6512. Prior to 2006, Section 33334.4(b) of CRL required that an agency spend its Housing Fund monies "in at least the same proportion as the population under age 65 bears to the total population based on the most recent census." The 2006 changes provide a higher level of specificity to spend "in at least the same proportion as the number of low-income households with a member under age 65 bears to the total number of low-income households of the community as reported in the most recent census." A community's proportionate need is based on statistics from the local regional planning agency, in this case the Southern California Association of Governments, to meet the requirement for affordable housing by category, and the US Department of Housing and Urban Development Comprehensive Housing Affordability Strategy ("CHAS") allocation numbers. However, as data relating to low income persons under the age of 65 is not readily available from the US Census, the metric that closest approximates it is from the CHAS database which represents data of low income persons below the age of 62. Table 111-5 on the following page represents the minimum Housing Fund expenditure thresholds for very low and low income households and the maximum housing expenditure thresholds for households 62 years of age over the term of the Compliance Period. The moderate income category represents a maximum figure for expenditures for moderate income households, although such funds (within this category) can be spent on very low or low income households. The chart specifically details the Agency's Housing Fund expenditure during the first five years of the Compliance Period and the 12 The intent of the legislation was to ensure that Housing Funds were not exclusively or extensively used by a community senior housing projects and programs. 79 -- -- - - ---- - - -- projected expenditures during the remainder of the Compliance Period. The Agency anticipates meeting their Housing Fund targeting requirements by the end of the Compliance Period. Housing Fund Proportional Expenditure Allocation Table III - 5 City of San Bernardino RHNA Targeting 2004-05 to 2008-09 2009-10 to 2013-14 2004-05 to 2013-14 Allocation Requirement Income Level IUnits)1 (% of Totall Expenditure % Expenditure % Expenditure % Very-Low Income (minimum) 1,275 39.0% $5,373,649 23.2% $24,899,491 45.7% $30,273,140 39.0% Low-Income (minimum) 913 27.9% $5,941,569 25.7% $15,736,374 28.9% $21,677,943 27.9% Moderate-Income (maximum) 1,079 33.0% $11,817 582 51.1% $13,801 805 25.4% $25 619,387 33.0% 3,267 $23,132,801 $54,437,670 $77,570,471 CHAS Targeting 2004-05 to 2008-09 2009-10 to 2013-14 2004-05 to 2013-14 Age Category of Income Allocation Requirement Restricted Households IHouseholds )2 1% of Totall Expenditure % Expenditure % Expenditure % Non-Senior 25,431 82.7% $22,804,730 98.6% $41,379,251 76.0% $64,183,980 82.7% Senior (limitation) 5,304 17.3% $328 071 1.4% $13058419 24.0% $13,386,490 17.3% 30,735 $23,132,801 $54,437,670 $77,570,471 1 Southern California Regional Housing Needs Assessment, Final 2007 2 Data of low income households under the age of 65 is not readily available from the Census. The nearest metri~ for such Census data represents households under the age of 62 (available via the Comprehensive Housing Affordability Strategy at http://socds.huduser.org/chas/index.htm). Source: SCAG; State of Cities Data System; and HUD As shown in Table 111-5, the Agency expended the majority of Housing Fund revenues on moderate and non-senior households during the first five years of the Compliance Period (FY 2004-05 through 2008- 09). The Agency has projected $54.4 million of Housing Fund expenditures for projects and programs implemented over the remainder of the Compliance Period (the second five years from FY 2009-10 through 2013-14). Future Housing Fund expenditures will be spent in the proportions detailed in Table 111-5 to ensure that Housing Fund Proportional Allocation targets are met by the end of the Compliance Period. Although the Agency has a surplus of affordable housing units, the Housing Fund must be expended in a timely manner to avoid penalties due to the Agency incurring an excess surplus in the Housing Fund pursuant calculations defined in CRL Section 33334.10. 13 PRIOR FIVE YEAR HOUSING FUND EXPENDITURES Units Assisted by Housing Set Aside Fund The CRL requires the Agency to report projects assisted by the Housing Fund to create extre~ely low, very low, and low income housing units over the past implementation plan period (FY 2004-05 through 2008-09). The CRL also requires a recap of the number, location, level of affordability, and the amount of Housing Funds expended on housing units. 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As also shown in the Housing Fund Proportional Expenditure Allocation table (Table 111- 5), $5,373,649 (or 23.2%) of the Housing Fund was expended on very low income housing and $5,941,569 (or 25.7%) was expended on low income housing. To comply with proportional expenditure allocation requirements per CRL Section 33334.4, the Agency will need to expend approximately $24.9 million and $15.7 million on very low and low income housing, respectively, over the next five years. Similarly, $328,071 (or 1.4%) of the Housing Fund was expended on people over the age of 62 over the past five years. Therefore, to comply with proportional expenditure requirements as outlined in Table 111- 5, not more than $13.1 million of the $54.4 million anticipated total expenditure on housing projects and programs can be expended on this population over the next five years. Housing Units Constructed During Prior Implementation Plan Without Housing Set Aside Funds Since fiscal year 2004-05, 78 affordable restricted units featuring long term covenants (affordable units with covenants of at least 45 years for ownership housing or 55 years for rental housing) have been created with funds other than tax increment. Of these, 48 were restricted to low, 22 were restricted to very low, and 8 were restricted to extremely low income households. Table 111-7 below outlines the location, affordability breakdown, and funding source of these units. Affordable Units Constructed from 2004 to 2009 Without Agency Assistance Table III - 7 San Bernardino Economic Development Agency Assessor Parcel Project Affordability Level Total Affordable Funding Amount of Date Covenant Number Information Proiect Area Low Very Low Ex!. Low Units Sou rce Assistance Comoleted Term AHEPA 377 East Gilbert SI. IVDA 43 1 45 89 HOME $1,200,000 3/20/2009 55 Years (APN 0147-091-47) 82 - ----- -- --- -- - CDC/2011-11 EXHIBIT "C" Housing Related ProjectslPrograms Capital Needs Analysis 14 P:\AgendaslComm Dev Commission\2011 CDC Items\Special Ioint WorkshopI03.03-11 Agency & AHS - Housing Capitalization Funding Agreement.docx --- --- CDC/2011-11 HOUSING RELATED PROJECTS/PROGRAMS CAPITAL NEEDS ANALYSIS PROJECT BUDGET Residential Revitalization Opportunities (30-Year Programs) 1 Single Family Beautification Grant $28,000,000 2 Single Family Rehabilitation Loan $12,000,000 3 Mobile Home Grant and Minor Home Repair $3,000,000 4 Home Buyer Education and Training $2,000,000 5 Citywide Homebuyer Assistance Program $28,000,000 6 Neighborhood Stabilization Program - tax increment contribution $12,000,000 Subtotal $85,000,000 NOFA & NOFA Created Projects 7 Magnolia @ Highland Senior Apartments (remaining balance) $3,000,000 8 Lugo Senior Apartments(remaining balance) $2,500,000 9 Annual Notice of Funding Availability (3D-Year Program) $86,500,000 Subtotal $92,000,000 Site and/or Area Specific Redevelopment (including off-sites) 10 Meridian Redevelopment Project $8,000,000 11 19th and Sunrise - Eastpointe Village Project $10,000,000 12 Hillside and Fairfax Redevelopment Project $4,000,000 13 Ward 1 Redevelopment Project $3,000,000 14 The Urban Block $18,000,000 15 49th Street Project $1,000,000 16 Mobile Home Park Acquisition and Redevelopment Project $9,000,000 17 Site Specific RFP Program (3D-Year Program) $145,000,000 Subtotal $198,000,000 Grand Total $375,000,000 FY2011: RDA Housing Set Aside = $7.4 million IVDA Housing Set Aside Allocation = $5.1 million (Based on FY2011 Budget Schedule 4801, Pg. 8 - Budget line Detail) - --- -- --- -- - ----- --- CDC/2011-11 EXHIBIT "D" Additional Ongoing Agency Contractual Obligations to be undertaken by AHS 15 P:lAgendaslComm Dev Commission\2011 CDC ltemslSpeeial Ioint WorkshopIOJ-OJ-11 Agency & AHS - Housing Capitalization Funding Agreement.docx CDC /2011-11 Additional Ongoing Agency Contractual Obligations to be Undertaken by the AHS 1. Staffing, Personnel, Consultants and other Professional Services to Implement Funding Agreement: including but not limited to, salaries and benefits to employees, fees and reimbursable expenses to consultants. 2. Property Maintenance and Management of Agency/AHS Owned Properties; including but not limited to, retaining of professional real estate consultants and service providers, payment of utilities, repair and maintenance and required capital upgrades, marketing and leasing, insurance and maintaining reserves and replacements for other property damage and liability issues. 3. Master Services Agreement of City with Agency: to be assigned by Agency to AHS and the scope and anticipated expenditures to be annually approved by the Board of the AHS. 4. Housing Needs Analysis within Redevelopment Proiect Areas: determine deficiencies and deferred maintenance and other safety hazards caused by inadequate housing stock; determine frequency and extent of periodic repairs and maintenance requirements; recommend capital improvement programs for these properties and recommended upgrades and acquisitions. 5. Membership Subscriptions and Organizational Dues: including, but not limited to, state and national organizations, ICSC, CRA, NAHRO, NDC, SCANPH and other industry organizations. 6. Office Expenses/Administration: including, but not limited, office supplies, office equipment and furnishings, computers and communications equipment and software, IT and communications consultants, utilities, other supplies and other out-sourced services. 7. Administration of Housing related Agreements: contract compliance and monitoring for all promissory notes and financial and performance obligations of parties pursuant to Loan Agreements, Reimbursement Agreements, DDA's and OPA's and Affordability, Maintenance and Use Covenants. 8. Property Disposition Expenses and Management: including, but not limited to, aIr related to sales and brokerage commissions, marketing, preparation of materials and agreements, appraisals, surveys, environmental reports, title and escrow costs. 9. Periodic Reporting Requirements: including, but not limited to, all state and federal reporting on housing redevelopment activities, filings with California Secretary of State, compliance with all FPPC reporting forms, continuing disclosure requirements for all Agency municipal housing bond issues and other bond issue related arbitrage and Trust Indenture compliance matters, review of annual audits and preparation of annual budgets. 1 P:\Agendas\Comm Dev Commission\2011 CDC Items\Special Joint Workshop\03-03-11 Exhibit 0 (AHS Contractual Obligations) - Housing Capitalization Funding Agreement.doc CDC/2011-11 EXHIBIT "E" Agency Real Property Housing Assets 16 P:\AgendasIComm Dev Commission\2011 CDC ItemslSpeciaJ Joint WorkshopI03-03-11 Agency & AHS - Housing Capitalization Funding Agreement.docx CDC/2011-11 AGENCY OWNED PROPERTIES ACQUIRED WITH HOUSING FUNDS - LOW MOD AND RELATED Downtown Properties 1. W 5th S1. 134-101-04,05,06 - Vacant Land (UM 20%) 2. 5th & G S1. I 34-0S4-24 - Vacant Land (UM 20%) 3. 575 W 5th S1. 134-093-07 - Vacant Land - Retail (UM 20%) 4. 673 W 5th S1. 134-10 1-02, 03 - Vacant Land (Beauty School) CUM 20%) 5. 696 W 5th S1. 134-061-30 - Restaurant (UM 20%) 134-061-21, 22, 25 - Parking Lot CUM 20%) 6. 701 W 5th S1. 134-093-08,09 - Vacant Land (UM 20%) 7. 745 W 5th S1. 134-093-05,06 - Vacant Land (UM 20%) 8. 755 W 5th S1. 134-093-40 - Vacant Land (UM 20%) .9. 746 W Sth St 134-054-07,08,09 Salvation Army (UM 20%) 10. 770 W 5th S1. 134-054-26 - Vacant Land (Las Portales Restaurant) (UM 20%) 11. 795 W 51h S1. 134-093-41 - Vacant Land (Paradise Motel) (L/M 20%) 12.796 W 51h Street 134-054-25 - Vacant Land (Service Station) CUM 20%) 5th & Meridian Properties: I. 2619 W 5th S1. 142-522-38 (UM 20%) 2. 2624 W 5th S1. 142-522-25 (UM 20%) 3. 2625 W 5lh S1. 142-522-37 (UM 20%) 4. 2632 W Slh S1. 142-522-42 (UM 20%) 5. 2633 W 51h S1. 142-522-36 (UM 20%) 6. 2638 W 51h S1. 142-522-41(UM 20%) 7. 2639 W 5lh S1. 142-522-35 (UM 20%) 8. 2642 W 51h S1. 142-522-13 (UM 20%) 9. 2643 W 5lh S1. 142-522-12 (UM 20%) 10. 2656 W 51h S1. 142-522-14 (UM 20%) 11. 2657 W 5th S1. 142-522-11 (UM 20%) 12.2670 W 5lh S1. 142-522-15 CUM 20%) 13. 2682 W 51h S1. 14:?-522-16 CUM 20%) 14. 2683 W 51h S1. 142-522-09 (UM 20%) 15.2694 W 51h S1. 142-522-17 (UM 20%) 16. 2695 W Slh S1. 142-522-08 (UM 20%) 49th Street 1. 251 E 49th S1. 154-126-0 I - Vacant Land (UM 20%) 2. 255 E 49th S1. 154-126-02 - Vacant Land (UM 20%) 3. 288 E 49th S1. 154-125-07 - Quadruplex (UM 20%) 4. 299 E 49th S1. 154-126-30 - Vacant Land CUM 20%) 1 P:\Agendas\Comm Dev Commission\2011 CDC ltems\Special Joint Workshop\03-03-ll Exhibit E (Housing Assets) - Housing Capitalization Funding Agreement.docx - --- - - - - - - ------- - CDC/2011-11 "F" Street 1. 939 N F St. 140-143-38 - Vacant Land ($1 I-lame) 2. l045N FSt.140-041-29-VacantLand($1 Home) "G" Street 1. 495 N G St. 134-101-28 - Vacant Land (UM 20%) 2. West 6th St. 134-021-26 Vacant Land (UM 20%) 3. 621 N G St. 134-021-28 - Vacant Land $1 Home 4. 622 N G St. 134-014-24,25,26,27 (UM 20%) 5. 631 N. G St. 134-021-29 - Vacant Land (UM 20%) 6. 938 N G St. 140-134-06 - Vacant Land ($1 Home) HWY 215 - Adiacent 1. 261-111-21,23,29,30,35,40 (UM 20%) 2. 261-121-01,02,03,13,14 (UM 20%) North Clearview Avenue 1. 261-461-llthru 21 (UM 20%) 2. 261-461-24 thm 31 (UM 20%) North Parkview Court 1. 261-461-36 thru 45, 47 (UM 20%) North Streamside Avenue 1. 261-451-39 thru 48 (UM 20%) West Sunset Lane 1. 261-451-01 thru 06 (UM 20%) 2. 261-451-24 thru 38 (UM 20%) 3. 261-461-01 thrulO (UM 20%) 4. 261-461-32 thru 35 (UM 20%) 2 P:\Agendas\Comm Dev Commission\2011 CDC Items\Special Joint Workshop\03-03-11 Exhibit E (Housing Assets) - Housing Capitalization Funding Agreement.docx - --- - --- - --- ----- CDC/2011-11 West WashineJon Avenue 1. 261-451-07 thrll 23 (UM 20%) 2. 261-461-22,23,46 (UM 20%) 3. 261-461-48-66 (UM 20%) Miscellaneous 1. 676 W 10th St. 140-033-22 - Vacant Land ($1 Home) 2. 815 W Orange St. 140-012-11 - Vacant Land ($1 I-Iome) 3. Arden Guthrie Tract. ] 19] -02] -11 thrll 46 & 1191-021-48 thru 69 (UM 20%) 4. 2105 E Sunrise Ln. 1191-051-55 - Vacant Land (UM 20%) 5. 1433 Lynwood Dr. 155-45]-10 - MF to Demo (UM 20%) .6. Parcel at Medical Center Drive and High]and - unassigned parcel no. (UM 20%) 3 P:\Agendas\Comm Dev Commission\2011 CDC hems\Special Joint Workshop\03-03-11 Exhibit E (Housing Assets) - Housing Capitalization Funding Agreement.docx