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HomeMy WebLinkAboutR28-Economic Development CITY OF SAN BERNARDINO 0 RIG 1 N A L ECONOMIC DEVELOPMENT AGENCY FROM: Emil A. Marzullo Interim Executive Director SUBJECT: Delegation of administration and management for the use of the City of San Bernardino Neighborhood Stabilization Program ("NSP") Funds in accordance with the Housing and Economic Recovery Act of 2008 DATE: July 16,2009 _____u_________________________________________________________________________________________________________________________________________________________n___________----------------------------- SvnoDsis of Previous Commission/CouDciVCommittee Action(s): -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Recommended Motion(s): (Mavor and Common CouDCil) Resolution of the Mayor and Common Council of the City of San Bernardino approving and authorizing the expenditure of certain Neighborhood Stabilization Program ("NSP") Funds to be utilized for acquisition, demolition, rehabilitation and resale activities pursuant to the Housing and Economic Recovery Act of 2008 ("HERA") in accordance with NSP Grant Number B-08-Mn-06-0520 (Communitv DeveloDment Commission) Resolution of the Community Development Commission of the City of San Bernardino accepting the Delegation of Administration and Management for the use of the City of San Bernardino Neighborhood Stabilization Program ("NSP") Funds to be utilized for acquisition, demolition, rehabilitation and resale activities in accordance with the Housing and Economic Recovery Act of 2008 ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Contact Person(s): Project Area(s): Carey K. Jenkins Phone: (909) 663-1044 N/A Ward(s): City Wide Supporting Data Attached: o Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 Letter(s) NSP Grant! Agency's Tax Increment Set-Aside Amount: $ 8,408,558 Source: Funds Funding Requirements: Budget Authority: Agency's FY 2009-2010 Budget Fiscal Review:f:;;;;;;;: ~8 a ss DeI es Interim Administrative Services Director co-mm-issio-~/EooncjiN-oies-:---------------1f;--;,I)--------:~7jZT::.--;;J.-:'y;}:,-----21----/iJj(i7~a5-Zf--=::?p:------------- Signature: EmilA. . Executive Director ________________u_________________________________________________________________________________________________------------------------------------------------------------------------ P\Agendas\Comm Dev Commission\CDC 2009\07_20_09 NSP Delegation SRdoc COMMISSION MEETING AGENDA Meeting Date: 07/20/2009 Agenda Item Number: -..f2.~ ~ ECONOMIC DEVELOPMENT AGENCY STAFF REPORT --------------------------------- -------------------------------- -------------------------------------- ------------------- ----------------- -------------------------------------- ---------------- DELEGATION OF ADMINISTRATION AND MANAGEMENT FOR THE USE OF THE CITY OF SAN BERNARDINO NEIGHBORHOOD STABILIZATION PROGRAM ("NSP") FUNDS IN ACCORDANCE WITH THE HOUSING AND ECONOMIC RECOVERY ACT OF 2008 BACKGROUND: On July 30, 2008, Congress enacted the Housing and Economic Recovery Act of 2008 to address foreclosures nationwide by funding $3.9 billion for the Neighborhood Stabilization Program ("NSP") administered by the United States Department of Housing and Urban Development ("HUD"). Under a formula allocation the City received approximately $8.4 million to address its foreclosure problem. On November 17, 2008, the City Council of the City of San Bernardino and the Community Development Commission of the City of San Bernardino (collectively, the "City") jointly approved the Redevelopment Agency of the City of San Bernardino's (the "Agency") proposal and submission to HUD for its $8.4 million NSP allocation. Finally, on March 3, 2009, HUD approved the City's application which was followed by an April 23, 2009, City Council action to formally accept the funds. The Agency's approved plan with HUD consists of the following four Program activities plus an administrative line item: 1. Acquisition, Rehabilitation and Resale of single-family residences ($3,700,000); 2. Acquisition and Demolition for future development ($920,000); 3. Down Payment Assistance ($920,000); 4. Housing Opportunities for Households at or below 50% of the AMI - HUD Requirement ($2, I 00,000); and 5. Administration ($768,558). CURRENT ISSUE: It is the intention of the Agency to now move forward with three of the approved NSP components: Acquisition, Rehabilitation and Resale of single-family residences; Acquisition and Demolition for future development; and Down Payment Assistance. The fourth activity, Housing Opportunities for Households at or below 50% of AMI, is in the process of being modified and will be submitted for approval under a separate request. The Agency requests authority to move forward in this fashion in order to initiate program activities and remain in compliance with NSP requirements as the City's allocation must be committed and obligated to specific work activities within 18 months of the HUD approval. This approval initially occurred on March 3, 2009, therefore, the City has until September 3, 2010, to obligate the $8.4 million allocation. _______________ _____________________ _________________ ___________________n_ ____________________ _________________________ ------------------------------------------ ------------------ ------------------ P:\Agendas\Comm Dev Commission\CDC 2009\07-20-09 NSP Delegation SR,doc COMMISSION MEETING AGENDA Meeting Date: 07/20/2009 Agenda Item Number: ~ 'l. ~ Economic Development Agency Staff Report Delegation of administration - NSP Page 2 ENVIRONMENTAL IMP ACT: None. FISCAL IMPACT: There will be no fiscal impact to the City's General Fund. The services provided under the Acquisition, Rehabilitation and Resale Program and the associated administration costs will be funded either with NSP funds derived from HUD or funds from the Agency's tax increment housing set-aside. As it relates to the Agency's Housing Set-Aside, funds have already been allocated to assist with NSP activities in the form of the Agency's citywide Housing Assistance Program which is established in the Agency's FY 2009- 2010 budget. RECOMMENDATION: That the Mayor and Common Council and the Community Development Commission adopt the attached Resolutions. ~ Emil A. Marzullo, Interim Executive Director ______________~___________________ _________________________________________________________n_ __________________ ______________________ ----------------------------------------------------------------------- P:\Agendas\Comm Dev Commission\CDC 2009\07-20-09 NSP Delegation SR.doc COMMISSION MEETING AGENDA Meeting Date: 07/20/2009 Agenda Item Number: J1..1 ( 1 2 3 4 5 6 7 (corv RESOLUTION NO. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE EXPENDITURE OF CERTAIN NEIGHBORHOOD STABILIZATION PROGRAM ("NSP") FUNDS TO BE UTILIZED FOR ACQillSITION, DEMOLITION, REHABILITATION AND RESALE ACTIVITIES PURSUANT TO THE HOUSING AND ECONOMIC RECOVERY ACT OF 2008 ("HERA") IN ACCORDANCE WITH NSP GRANT NUMBER B-08-MN- 06-0520 8 WHEREAS, the City of San Bernardino (the "City") has received a certain grant in the 9 principal amount of $8,408,558 as Neighborhood Stabilization Program ("NSP") Funds pursuant to 10 the Housing and Economic Recovery Act of 2008 ("HERA") and in accordance with a Funding 11 Approval and Grant Agreement duly executed by and between the City and the United States 12 Department of Housing and Urban Development ("HUD") as NSP Grant Number B-08-MN-06- 13 0520; and 14 WHEREAS, the City intends to authorize the Redevelopment Agency of the City of San 15 Bernardino (the "Agency"), pursuant to this Resolution, to administer certain NSP Funds as shall be 16 received by the City pursuant to said NSP Grant and to otherwise provide for and administer the 17 NSP program that shall be undertaken within the City by the Agency as required of the City under 18 the Funding Approval and Grant Agreement; and 19 WHEREAS, the City recognizes that an amount equal to 25% of the NSP Funds awarded to 20 the City are to be expended to benefit households whose incomes are no greater than 50% of the 21 Area Median Income ("AMI") as recognized by HUD; and 22 WHEREAS, the Agency intends to submit a development plan utilizing NSP Funds targeted 23 to households at or below 50% of the AMI under a separate action; and 24 WHEREAS, the City recognizes that various non-profit corporations, whether controlled by 25 the Agency or which are independent of the Agency, will be acquiring title to single-family 26 foreclosed homes from the applicable lenders in an effort to implement the process for the 27 acquisition, rehabilitation or demolition and/or resale of all such foreclosed properties or building 28 lots after completion of rehabilitation or demolition; and 1 P:\A8endasIResolutions\Resolutions\2009\07-20-09 NSP Delepzion Mec Reso (Final) doc 1 WHEREAS, it is necessary at this time for the City to specifically authorize the actions as 2 required to be undertaken by the Agency for the administration of the NSP Funds and the 3 disbursement of such NSP Funds to various non-profit corporations accepting title to foreclosed 4 properties within designated target areas or elsewhere in the City as may be permitted by HERA and 5 in furtherance of the use of the NSP Funds by the Agency on behalf of the City; and 6 WHEREAS, the Funding Approval and Grant Agreement (the "NSP Grant Agreement") by 7 and between HUD and the City as executed on April 23, 2009, and a copy of said Agreement is 8 attached to this Resolution as Exhibit "A". 9 NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED BY 10 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS il FOLLOWS: 12 Section 1. The facts set forth in the Recitals to this Resolution are accurate and correct in all 13 respects. 14 Section 2. This Mayor and Common Council of the City of San Bernardino (this "Council") 15 hereby authorizes and directs the Agency staff, subject to confirmation and ratification by the 16 Community Development Commission of the City of San Bernardino (the "Commission'\ to 17 implement certain aspects of the NSP program and the disbursement of certain NSP grant funds that 18 are available to the City pursuant to HERA and as further set forth in the NSP Grant Agreement. 19 The Agency shall be solely responsible for all administrative, audit and compliance matters required 20 either under HERA or the NSP Grant Agreement as may be required for the use of the NSP Funds 21 within the City. 22 Section 3. This Council further authorizes and directs that the NSP Funds as shall be 23 received by the City and administered by the Agency as authorized by this Resolution shall be used 24 and applied for the following categories of expenditures and programs and not to exceed the dollar 25 amounts as provided in this Section 3: 26 (a) $920,000 - Down payment assistance for qualified single family homebuyers; 27 (b) $2,100,000 - housing opportunities for households at or below 50% of the Area 28 Median Income, the specific uses of which shall be submitted for Council 2 PlAgendas'.Resolutions\Resolutions\2009\07-20-09 NSP Delegation MCC Reso (Final) dO(: 1 consideration under a future action and shall not be expended until such Council 2 authority has been granted; 3 (c) $920,000 for acquisition, demolition and redevelopment of single-family and multi- 4 family residential structures to be acquired by either the Agency or non-profit 5 corporations which are either independent of the Agency or controlled by the 6 Agency; and 7 (d) $3,700,000 for the acquisition, rehabilitation and resale of single-family foreclosed 8 residences through an Intermediary Services Program as may be initiated and 9 approved by the Commission for the Agency either by the Agency or through non- 10 profit corporations which are either independent of the Agency or controlled by the '11 Agency. 12 (e) Staff is authorized to make a one-time transfer up to 20% of any line item to another 13 line item based on need. 14 The Agency shall be further authorized and directed to payor reimburse to the Agency from the 15 NSP Funds as are allocated to the various categories of housing activities specified above such 16 dollar amounts as are required to provide for the effective administration and management of the 17 NSP program as shall be implemented by the Agency. Such dollar amounts of the NSP Funds to be 18 used and applied by the Agency for such administration and management shall not exceed those 19 dollar limitations and other limitations on eligible expenditures as may be established by HUD 20 either pursuant to HERA or which are otherwise applicable to the use of the NSP Funds. 21 Section 4. This Resolution shall take effect upon its adoption and execution in the manner 22 as required by the City Charter. 23 1// 24 1// 25 1// 26 1// 27 1// 28 1// 3 P\Agendas\Resolmions\Resolutions\2009\07_20_Q9 :-lSP Delegation MeC Reso (Final)doc 1 2 3 4 5 6 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE EXPENDITURE OF CERTAIN NEIGHBORHOOD STABILIZATION PROGRAM ("NSP") FUNDS TO BE UTILIZED FOR ACQUISITION, DEMOLITION, REHABILITATION AND RESALE ACTIVITIES PURSUANT TO THE HOUSING AND ECONOMIC RECOVERY ACT OF 2008 ("HERA") IN ACCORDANCE WITH NSP GRANT NUMBER B-08-MN- 06-0520 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and 7 Common Council of the City of San Bernardino at a meeting 8 thereof, held on the day of 9 Council Members: Aves 10 ESTRADA 11 BAXTER 12 BRINKER 13 SHORETT 14 KELLEY 15 JOHNSON 16 MC CAMMACK 17 18 ,2009, by the following vote to wit: Navs Abstain Absent Rachel G. Clark, City Clerk 19 20 The foregoing Resolution is hereby approved this day of ,2009. 21 22 23 Patrick J. Morris, Mayor City of San Bernardino 24 Approved as to Form: 25 26 By: 27 28 jo~h,~ 1; ~,. ~tf- James F. Penman, Cit Attorn I' V P:\Agendas\ResolUlions\Resoh.llionsl009\07-20-09 NSP Delegation MCC Reso (Finaljdoe 4 EXJllBIT "A" 2009-105 FUNDING APPROVAL AND GRANT AGREEMENT FOR NEIGHBORHOOD STABILIZATION PROGRAM (NSP) FUNDS AS AUTHORIZED AND APPROPRIATED UNDER mE HOUSING AND ECONOMIC RECOVERY ACT OF 2008 (PUBLIC LAW 110-289, JULY 30, 2008) NSP GRANTEE: City of San Bernardino NSP GRANT NUMBER: B-08-~-06-0520 NSP GRANT AMOUNT: $8,408,558 MAR - 3 20J' NSP APPROVAL DATE: This Grant Agreement between the Department of Housing and Urban Development (HUD) and City of San Bernardino (Grantee) is made pursuant to the authority of sections 2301- 2304 of the Housing and Economic Recovery Act of 2008 (public Law 110-289 (July 3D, 2008)) (HERA). The program established pursuant to section 2301-2304 is known as the "Neighborhood Stabilization Program" or "NSP," The Notice of Allocations, Application Procedures, Regulatory Waivers Granted to and Alternative Requirements for Redevelopment of Abandoned and Foreclosed Homes Under the Housing and Economic Recovery Act, 2008 published at 73 FR 58330 (October 6, 2008) (Notice); HERA; the Grantee's submission for NSP assistance (Grantee Submission); the HUD regulations at 24 CPR Part 570 (as modified by the Notice and as now in effect and as may be amended from time to time) (Regulations); and this Funding Approval, including any special conditions, constitute part of rhe Grant Agreement. Subject to the provisions of this Grant Agreement, HOD will make NSP Grant Funds in the amount of $8,408,558 available to the Grantee upon execution of this Grant Agreement by the parties. The Grantee shall have 18 months from the date of HUD's execution of this Grant Agreement to obligate the NSP Grant Amount pursuant to the requirements of HERA and the Notice. The Grantee shall have 48 months from the date of HUD's execution of this Grant Agreement to expend the NSP Grant Amount pursuant to the requirements of the Notice. The NSP Grant Funds may be used to pay eligible costs arising from eligible uses incun-ed after the NSP Approval Date provided the activities to which such costs are related are carried out in compliance with all applicable requirements. Pre-award planning and general administrati ve costs may not be paid with funding assistance except as permitted in the Notice; the Notice limits such costs to those incurred on or after September 29, 2008, Other pre-award costs may not be paid with funding assistance except as pennitted by 24 CPR 570.200(h); for purposes of l'rSP, such costs are limited to those incurred on or after the date that the NSP substantial amendment was received by HUD. 2009-105 2 The Grantee agrees to assume all of the responsibilities for environmental review, decisionmaking, and actions, as specified and required in regulations issued by the Secretary pursuant to Section 104(g) of Title I of the Housing and Community Development Act, as amended (42 U.S.C. 5304) and published in 24 CPR Part 58. The Grantee further acknowledges its responsibility for adherence to the Grant Agreement by sub-recipient entities to which it makes funding assistance hereunder available. This Grant Agreement may be amended only with the prior written approval of mID. In considering proposed amendments to this Grant Agreement, HUD shall review, among other things, whether the amendment is othenvise consistent with HERA, the Notice, and the Regulations. . The Grantee may amend its Grantee Submission; however, such amendments, including substantial amendments as defined in 24 CFR Part 91, will be subject to the requirements of 24 CFR Part 91 (or any successor regulation) and any revisions HUD may make to the Notice (or any successor Notice or regulation). The Grantee shall at all times maintain an up-to-date copy of its Grantee Submission, including all amendments approved by HUD, on its Internet website as required by the Notice. Further, the Grantee shall maintain information on all drawdowns, deposits, and expenditures of grant funds and program income under this Funding Approval and Grant Agreement and any other records required by 24 CFR 570.506. in its files and shall make such information available for audit or inspection by duly authorized representatives ofHUD, mID's Office of the Inspector General, or the Comptroller General of the United States. The Grantee shall submit information on performance measurement as established by the Secretary for activities undertaken with NSP grant funds. The Grantee is advised that providing false, fictitious or misleading information with respect to NSP Grant Funds may result in criminal, civil or administrative prosecution under 18 USC ~1001, 18 USC ~1343, 31 use ~3729, 31 USC ~3801 or another applicable statute. . Close-out of this grant shall be subject to the provisions of 24 CFR 570.509 or such close-out instructions as may hereafter be issued by HUD specifically for NSP grants. 2009-105 s This NSP Grant Agreement is binding with respect to HOD in accordance with its terms upon the execution by HOD in the space provided above, subject to execution on behalf of the Grantee. The United States Department of Housing and Urban Development The Grantee City of San Bernardino ~~al Signature of Authorized Offici William G. Vasquez A$/eK ~ m~S- Name of Authorized Official Name of Authorized Official Director Community Planning and Development /?;7..-flP''''''' Title of Authorized Official Title of Authorized Official 3<1~ Date of Sigrtur 1'/.2.3/09 Date of Signat~re 95-6000772 Grantee Tax Identification Number For HUD CFO Use Onlv Current Balances Incl~ases~ecreases Endin!! Balance Date 1 2 3 4 5 6 7 RESOLUTION NO. t~~lr RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO ACCEPTING THE DELEGATION OF ADMINISTRATION AND MANAGEMENT FOR THE USE OF THE CITY OF SAN BERNARDINO NEIGHBORHOOD STABILIZATION PROGRAM ("NSP") FUNDS TO BE UTILIZED FOR ACQUISITION, DEMOLITION, REHABILITATION AND RESALE ACTMTIES IN ACCORDANCE WITH THE HOUSING AND ECONOMIC RECOVERY ACT OF 2008 WHEREAS, the City of San Bernardino (the "City") has received a certain grant in the 8 principal amount of $8,408,558 as Neighborhood Stabilization Program ("NSP") Funds pursuant to 9 the Housing and Economic Recovery Act of 2008 ("HERA") and in accordance with a Funding 10 Approval and Grant Agreement duly executed by and between the City and the United States 11 Department of Housing and Urban Development ("HOD") as NSP Grant Number B-08-MN-06- 12 0520;and 13 WHEREAS, the City, pursuant to a duly adopted Resolution on this date has authorized the 14 Redevelopment Agency of the City of San Bernardino (the "Agency") pursuant to said Resolution, 15 to administer all such NSP Funds as shall be received by the City pursuant to said NSP Grant and to 16 otherwise authorize the Agency to provide for and administer the NSP program that shall be 17 undertaken within the City by the Agency as required of the City under the Funding Approval and 18 Grant Agreement; and 19 WHEREAS, the City recognizes that an amount equal to 25% of the NSP Funds awarded to 20 the City are to be expended to benefit households whose incomes are no greater than 50% of the 21 Area Median Income ("AMI") as recognized by HUD; and 22 WHEREAS, the Agency intends to submit a development plan utilizing NSP Funds targeted 23 to households at or below 50% of the AMI under a separate action; and 24 WHEREAS, the Agency intends that various non-profit corporations, whether controlled by 25 the Agency or which are independent of the Agency, will be acquiring title to single-family 26 foreclosed homes that have been foreclosed by the applicable lenders in an effort to implement the 27 process for the acquisition, demolition or rehabilitation and resale of all such foreclosed properties 28 or building lots after completion of demolition; and I P\Agendas'IRcsolutions\Resolutions\2009\07.2().09 NSP Delegation COC Resodoc 1 WHEREAS, it is necessary at this time for the Community Development Commission of the 2 City of San Bernardino (this "Commission") to concur in the request as made by the Mayor and 3 Common Council of the City of San Bernardino ("Council") and to specifically authorize Agency 4 Staff to undertake the actions as required of the Agency for the administration of the NSP Funds and 5 the disbursement of such NSP Funds to various non-profit corporations accepting title to foreclosed 6 properties within designated target areas or elsewhere in the City as may be permitted by HERA and 7 in furtherance of the use of the NSP Funds by the Agency on behalf of the City; and 8 WHEREAS, it is necessary for the Agency to comply with the Funding Approval and Grant 9 Agreement (the "NSP Grant Agreement") by and between HUD and the City as executed on April 10 23,2009. 11 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE 12 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS 13 FOLLOWS: 14 Section 1. The facts set forth in the Recitals to this Resolution are accurate and correct in all 15 respects. 16 Section 2. The Commission hereby authorizes and directs Agency Staff to implement 17 certain aspects of the NSP program and the disbursement of the NSP grant funds that are available 18 to the City pursuant to HERA and as further set forth in the NSP Grant Agreement. The 19 Commission recognizes that the Agency shall be solely responsible for all administrative, audit and 20 compliance matters required either under HERA or the NSP Grant Agreement as may be required 21 for the use of the NSP funds within the City. 22 Section 3. The Commission hereby directs the Agency to return to the Commission for 23 authorization to draw down NSP Funds targeted to households whose incomes are no greater than 24 50% of the AMI. 25 Section 4. The use and application of the NSP Funds by the Agency shall not exceed those 26 limitations set forth in Section 3 of the Resolution of the Council of even date with this Resolution 27 authorizing the Agency to administer and manage the NSP program subject to the confirmation by 28 the official action of this Commission. The Agency is hereby authorized to pay directly or to P:\Agcndas\ResolutionslJlt$Olutions\2009\07_Z0-09 NSP ~leg.ation COC ResodlX 2 1 otherwise reimburse the Agency for those costs and expenses of the administration and management 2 of the NSP program subject to such dollar limitation and other limitations on eligible expenditures 3 as may be established by HUD either pursuant to HERA or which are otherwise applicable to the 4 use of the NSP Funds. 5 Section 5. This Resolution shall take effect from and after its date of adoption by this 6 Commission. 7 1/1 8 1/1 9 1/1 10 1/1 11 1/1 12 11/ 13 11/ 14 1/1 15 1/1 16 1/1 17 11/ 18 1/1 19 11/ 20 11/ 21 1/1 22 1/1 23 11/ 24 1/1 25 11/ 26 1/1 27 1/1 28 1/1 3 PlAgenda.slResolutionslRewlutions\2009\07-20-09 NSP O<=legation mc Reso.ooc 1 2 3 4 5 6 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO ACCEPTING THE DELEGATION OF ADMINISTRATION AND MANAGEMENT FOR THE USE OF THE CITY OF SAN BERNARDINO NEIGHBORHOOD STABILIZATION PROGRAM ("NSP") FUNDS TO BE UTILIZED FOR ACQUISITION, DEMOLITION, REHABILITATION AND RESALE ACTIVITIES IN ACCORDANCE WITH THE HOUSING AND ECONOMIC RECOVERY ACT OF 2008 I HEREBY CERTIFY that the foregoing Resolution was duIy adopted by the Community 7 Development Commission of the City of San Bernardino at a meeting 8 thereof, held on the day of 9 Commission Members: Aves 10 ESTRADA 11 BAXTER 12 BRINKER 13 SHORETT 14 KELLEY 15 JOHNSON 16 MC CAMMACK ,2009, by the following vote to wit: Abstain Absent Navs 17 18 19 Secretary 20 The foregoing Resolution is hereby approved this day of ,2009. 21 22 23 24 Patrick J. Morris, Chairperson Community Development Commission of the City of San Bernardino Approved as to Form: 25 26 By: c;-- ~rI1.J 27 Agency~CJt:;e~ 28 4 P:\AgendaslAc:wlutionslResolutions\2009\07-20-09 NSP Delegation CDC Reso.doc 1 2 3 4 5 6 7 RESOLUTION NO. RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO ACCEPTING THE DELEGATION OF ADMINISTRATION AND MANAGEMENT FOR THE USE OF THE CITY OF SAN BERNARDINO NEIGHBORHOOD STABILIZATION PROGRAM ("NSP") FUNDS TO BE UTILIZED FOR ACQUISITION, DEMOLITION, REHABILITATION AND RESALE ACTIVITIES IN ACCORDANCE WITH THE HOUSING AND ECONOMIC RECOVERY ACT OF 2008 WHEREAS, the City of San Bernardino (the "City") has received a certain grant in the 8 principal amount of $8,408,558 as Neighborhood Stabilization Program ("NSP") Funds pursuant to 9 the Housing and Economic Recovery Act of 2008 ("HERA") and in accordance with a Funding 10 Approval and Grant Agreement duly executed by and between the City and the United States 11 Department of Housing and Urban Development ("HOD") as NSP Grant Number B-08-MN-06- 12 0520; and 13 WHEREAS, the City, pursuant to a duly adopted Resolution on this date has authorized the . 14 Redevelopment Agency of the City of San Bernardino (the "Agency") pursuant to said Resolution, 15 to administer all such NSP Funds as shall be received by the City pursuant to said NSP Grant and to 16 otherwise authorize the Agency to provide for and administer the NSP program that shall be 17 undertaken within the City by the Agency as required of the City under the Funding Approval and 18 Grant Agreement; and 19 WHEREAS, the City recognizes that an amount equal to 25% of the NSP Funds awarded to 20 the City are to be expended to benefit households whose incomes are no greater than 50% of the 21 Area Median Income ("AMI") as recognized by HOD; and 22 WHEREAS, the Agency intends to submit a development plan utilizing NSP Funds targeted 23 to households at or below 50% of the AMI under a separate action; and 24 WHEREAS, the Agency intends that various non-profit corporations, whether controlled by 25 the Agency or which are independent of the Agency, will be acquiring title to single-family 26 foreclosed homes that have been foreclosed by the applicable lenders in an effort to implement the 27 process for the acquisition, demolition or rehabilitation and resale of all such foreclosed properties 28 or building lots after completion of demolition; and I P.\AgendasIResolutions\Ruolulions\2009\07-20-09 NSP Delegation CDC Reso.doc 1 WHEREAS, it is necessary at this time for the Community Development Commission of the 2 City of San Bernardino (this "Commission") to concur in the request as made by the Mayor and 3 Common Council of the City of San Bernardino ("Council") and to specifically authorize Agency 4 Staff to undertake the actions as required of the Agency for the administration of the NSP Funds and 5 the disbursement of such NSP Funds to various non-profit corporations accepting title to foreclosed 6 properties within designated target areas or elsewhere in the City as may be permitted by HERA and 7 in furtherance of the use of the NSP Funds by the Agency on behalf of the City; and 8 WHEREAS, it is necessary for the Agency to comply with the Funding Approval and Grant 9 Agreement (the "NSP Grant Agreement") by and between HUD and the City as executed on April 10 23,2009. 11 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE 12 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS 13 FOLLOWS: 14 Section 1. The facts set forth in the Recitals to this Resolution are accurate and correct in all 15 respects. 16 Section 2. The Commission hereby authorizes and directs Agency Staff to implement 17 certain aspects of the NSP program and the disbursement of the NSP grant funds that are available 18 to the City pursuant to HERA and as further set forth in the NSP Grant Agreement. The 19 Commission recognizes that the Agency shall be solely responsible for all administrative, audit and 20 compliance matters required either under HERA or the NSP Grant Agreement as may be required 21 for the use of the NSP funds within the City. 22 Section 3. The Commission hereby directs the Agency to return to the Commission for 23 authorization to draw down NSP Funds targeted to households whose incomes are no greater than . 24 50% of the AMI. 25 Section 4. The use and application of the NSP Funds by the Agency shall not exceed those 26 limitations set forth in Section 3 of the Resolution of the Council of even date with this Resolution 27 authorizing the Agency to administer and manage the NSP program subject to the confirmation by 28 the official action of this Commission. The Agency is hereby authorized to pay directly or to 2 P\Agendas\ResolutionsIReso]ulionsUOO9\07.20-09 NSP Delegation CDC Reso,doe 1 otherwise reimburse the Agency for those costs and expenses of the administration and management 2 of the NSP program subject to such dollar limitation and other limitations on eligible expenditures 3 as may be established by HUD either pursuant to HERA or which are otherwise applicable to the 4 use of the NSP Funds. 5 Section 5. This Resolution shall take effect from and after its date of adoption by this 6 Commission. 7 III 8 III 9 III 10 III 11 III 12 III 13 III 14 III 15 III 16 III 17 III 18 III 19 III 20 III 21 III 22 III 23 III 24 III 25 III 26 III 27 III 28 III 3 PlAgendas\Resolutiolls\Resolutions\2009\07-20-09 NSP Delegation CDC Reso.OOc 1 2 3 4 5 6 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO ACCEPTING THE DELEGATION OF ADMINISTRATION AND MANAGEMENT FOR THE USE OF THE CITY OF SAN BERNARDINO NEIGHBORHOOD STABILIZATION PROGRAM ("NSP") FUNDS TO BE UTILIZED FOR ACQUISITION, DEMOLITION, REHABILITATION AND RESALE ACTIVITIES IN ACCORDANCE WITH THE HOUSING AND ECONOMIC RECOVERY ACT OF 2008 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community meeting 7 Development Commission of the City of San Bernardino at a 8 thereof, held on the day of 9 Commission Members: Aves 10 ESTRADA 11 BAXTER 12 BRINKER 13 SHORETT 14 KELLEY 15 JOHNSON 16 MC CAMMACK 17 18 19 ,2009, by the following vote to wit: Navs Abstain Absent Secretary day of ,2009. 20 The foregoing Resolution is hereby approved this 21 22 23 24 Patrick J. Morris, Chairperson Community Development Commission of the City of San Bernardino . Approved as to Form: 25 26 By: C/ .-,,:::><er/I.) 27 Agency C~ 28 4 P:\AgendasIResolutionslResolulions\2009\07-20-09 NSP ~Iegation COC Reso,do<: